Asahi Kasei Corporation · TSE:3407
Asahi Kasei — Investor Day (October 2021)
31 slides from Asahi Kasei's investor day presentation, Oct 5, 2021
Slide 1: Toward Global Healthcare Company
Toward Global Healthcare Company October 5 & 6, 2021 (JST) Asahi Kasei Corp., Healthcare Sector Shuichi Sakamoto, Board Director, Primary Executive Officer Richard A. Packer, Primary Executive Officer
Slide 2: Contents
Contents 1. Introduction of Healthcare Sector 2. Progress to Date 3. Growth Trajectory 4. Business Strategy 5. Closing Disclaimer The forecasts and estimates shown in this document are dependent on a variety of assumptions and economic conditions. Plans and figures depicting the future to not imply
Slide 3: Healthcare Sector
Healthcare Sector Group Mission: Contribute to life and living for people around the world Healthcare Material Homes [Critical Care] ZOLL Medical Basic Chemicals Homes Fibers Construction Materials [Pharmaceuticals] Asahi Kasei Pharma Specialty Chemicals Veloxis Pharmaceuticals Electronic Materials,
Slide 4: ZOLL Medical
ZOLL Medical ⚫ CEO: Jonathan A. Rennert ⚫ HQ Location: Boston, MA, USA ⚫ Joined Asahi Kasei in FY2012 ⚫ FY2020 Sales: $2.39 billion ⚫ Business: Medical Devices and Software ➢ Defibrillation and cardiac monitoring Defibrillators/Monitors AEDs Wearable Defibrillators ➢ Circulation enhancement and CPR
Slide 5: Asahi Kasei Pharma
Asahi Kasei Pharma ⚫ President & CEO: Yoshikazu Aoki ⚫ HQ Location: Tokyo, Japan ⚫ FY2020 Sales: ¥66.4 billion ⚫ Business: Prescription Drugs ➢ Teribone and Reclast (osteoporosis) ➢ Kevzara (rheumatoid arthritis) Teribone Reclast ➢ Recomodulin (DIC) ➢ Long-listed products Diagnostic Products Kevzara
Slide 6: Veloxis Pharmaceuticals
Veloxis Pharmaceuticals ⚫ CEO: Craig A. Collard ⚫ HQ Location: Raleigh, NC, USA ⚫ Joined Asahi Kasei in FY2019 ⚫ FY2020 Sales: $139 million ⚫ Business: Prescription Drugs ➢ Envarsus XR： - Immunosuppressant drug used following kidney transplant - Extend-release formulation of Tacrolimus* with a propr
Slide 7: Asahi Kasei Medical
Asahi Kasei Medical ⚫ President & CEO: Shugo Sumiyoshi ⚫ HQ Location: Tokyo, Japan ⚫ FY2020 Sales: ¥73.3 billion ⚫ Business: Blood Purification ➢ Dialysis ➢ Therapeutic Apheresis Dialyzer Therapeutic Apheresis Bioprocess ➢ Virus Removal Filters ➢ Fluid Management ➢ Biosafety Testing Services (CRO) V
Slide 8: Contents
Contents 1. Introduction of Healthcare Sector 2. Progress to Date 3. Growth Trajectory 4. Business Strategy 5. Closing 8
Slide 9: Asahi Kasei: Financial Performance
Asahi Kasei: Financial Performance ▶ Sustainable growth driven by the three Operating ▶ Profit growth and stable profitability Sales business sectors of Material, Homes Income enabled by diversified portfolio and Healthcare Operating Income (left scale) Operating Margin (right scale) （¥ billion） 10%
Slide 10: Healthcare Sector: Financial Performance
Healthcare Sector: Financial Performance ▶ More than six-fold growth over the past ▶ Growth driven initially by Critical Care. Operating 10 years Sales Pharma and Bioprocess accelerating Income ▶ Both profit growth and profit margin improvement achieved Acquired US pharma platform through M&A of Ope
Slide 11: Notable M&A / In-licensing Deals in Healthcare Sector
Notable M＆A / In-licensing Deals in Healthcare Sector ▶ Accelerating activities for further growth by applying ZOLL’s growth method to other businesses Acquirer Fiscal year Company/Product Business/Disease area 2012 ZOLL Medical Critical Care 2019 Veloxis Pharmaceuticals Pharmaceuticals 2012 En-Pro
Slide 12: Contribution to Asahi Kasei Sales
Contribution to Asahi Kasei Sales FY2011 FY2021 (forecast announced in May 2021) Healthcare Healthcare Homes Homes Material Material Total: ¥1,554.6 billion* Total: ¥2,359.0 billion* *Excluding the “Others” category and intersegment eliminations. 12
Slide 13: Contribution to Asahi Kasei Operating Income
Contribution to Asahi Kasei Operating Income FY2011 FY2021 (forecast announced in May 2021) Healthcare Healthcare Homes Homes Material Material Total: ¥110.9 billion* Total: ¥222.0 billion* *Excluding the “Others” category and corporate expenses and eliminations. 13
Slide 14: Contents
Contents 1. Introduction of Healthcare Sector 2. Progress to Date 3. Growth Trajectory 4. Business Strategy 5. Closing 14
Slide 15: Policies for Healthcare toward FY2025
Policies for Healthcare toward FY2025 Healthcare to become the third major pillar and growth driver of Asahi Kasei ✓ Accelerate transformation into a Global Healthcare Company ✓ Operate both pharmaceutical and medical device businesses ✓ Target sales of ¥600 billion and operating income of ¥80 billi
Slide 16: Aggressive Expansion Expectation
Aggressive Expansion Expectation ▶ Targeted Operating Income margin 20% （¥ billion） （¥ billion） 1,000 200 900 800 150 Operating Income 700 600 600 Sales 500 100 408 400 80 400 68 300 55 50 200 120 100 9 0 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY25 FY25 FY30 FY30 FY11 FY12 FY13 FY1
Slide 17: Regional Strategy
Regional Strategy ▶ USA ：Pursue growth opportunities in the biggest and high growth market ▶ Japan ：Strengthen business for generating sustainable and stable profit ▶ EU/China ：Establish business platform for further expansion Sales ratio by region FY2025 target （circle size: sales amount） FY2020 Ja
Slide 18: Healthcare Sector Governance
Healthcare Sector Governance Asahi Kasei Corp. President Hideki Kobori Executive Officer for Healthcare Business Sector (Joint) Richard A. Packer Shuichi Sakamoto Healthcare Business Unit Meeting Pharma Steering Committee Asahi Kasei Veloxis Asahi Kasei ZOLL Medical New Medtech Pharma Pharmaceutical
Slide 19: Contents
Contents 1. Introduction of Healthcare Sector 2. Progress to Date 3. Growth Trajectory 4. Business Strategy 5. Closing 19
Slide 20: ZOLL Business Strategy
ZOLL Business Strategy ▶Focus on serious cardiopulmonary conditions ▶Growth plans are supported by: ▶Portfolio of best-in-class technologies for critical cardiopulmonary care ▶Expansion into adjacent markets PROTECTION & DEFIBRILLATION ACUTE DATA VENTILATION SLEEP APNEA PATIENT MANAGEMENT & CARDIAC
Slide 21: Improving Outcomes for Underserved Patients Suffering from Serious Cardiopulmonary Conditions
Improving Outcomes for Underserved Patients Suffering from Serious Cardiopulmonary Conditions Research shows complex interrelationships between cardiovascular disease and sleep apnea An estimated 60% of cardiovascular patients suffer from some form of sleep apnea. The majority of these patients go u
Slide 22: Transformation into Global Specialty Pharma
Transformation into Global Specialty Pharma ▶ Aim to achieve sales goals of ¥150 billion for FY2025 and ¥200 billion for FY2030 as a global specialty pharma Core disease areas Products Asahi Kasei Pharma ・Teribone Global pharma targets Orthopedics ・Reclast 1. Disease areas adjacent to immunology/tra
Slide 23: Cooperation Enhancement within Pharma Domain
Cooperation Enhancement within Pharma Domain ▶ Combining the best knowledge of each organization in business / clinical development Japan USA Asahi Kasei Veloxis Functions Pharmaceuticals Pharma Business ・ Grasp medical needs and access to cutting-edge innovation in USA Development R&D ・ Promote ope
Slide 24: Expansion of Bioprocess Business Base
Expansion of Bioprocess Business Base ▶ Expand current business focusing on pioneering biologics safety and manufacturing efficiencies ▶ Added CRO business to the business portfolio through the acquisition of Virusure Business Portfolios Virus Removal Filters Biosafety Testing Services Acquire (CRO)
Slide 25: Firm Business Platform in Japan
Firm Business Platform in Japan Pharmaceuticals Blood Purification Achieve sustainable growth as a specialty pharma Maintain the hemodialysis business, and for orthopedics, critical care medicine and invest in the therapeutic apheresis business immunology: as a leading company: ➢ Maximize sales and
Slide 26: Business Development Policy
Business Development Policy M&A; Equity; Debt with Option; In-Licensing, etc. ▶ Capable Leadership Team Management ▶ Aspiration to Grow with Asahi Kasei Critical Care Pharma ▶ Big Market Potential (>$1B) Market Bioprocess ▶ Strong Unmet Needs New Medtech Competitive ▶ Differentiated – in Technology
Slide 27: Acceleration of Business Development
Acceleration of Business Development ▶ Preparation in progress for the relocation of Healthcare headquarters functions to the US in the near future ✓ Put ourselves in the location with the largest market where innovation and growth happens ▶ Concentrate business development resources of Healthcare i
Slide 28: Contents
Contents 1. Introduction of Healthcare Sector 2. Progress to Date 3. Growth Trajectory 4. Business Strategy 5. Closing 28
Slide 29: Progress of globalization
Toward Global Healthcare Company ▶ Accelerate transformation into a Global Healthcare Company with wide variety of growth drivers Global Healthcare Company with a strong presence Transition to Progress of globalization global management Veloxis Pharmaceuticals joined ZOLL Medical joined ➢ Establishm
Slide 30: Healthcare Sector Mission
Healthcare Sector Mission Improve and save patients’ lives 30
Slide 31: Creating for Tomorrow
THE COMMITMENT OF THE AS AHI KASEI GROUP: To do all that we can in every era to help the people of the world make the most of life and attain fulfillment in living. Since our founding, we have always been deeply committed to contributing to the development of society, boldly anticipating the emergen