Nippon Fine Chemical Co., Ltd. · TSE:4362
Nippon Fine Chemical — Investor Day (May 2023)
34 slides from Nippon Fine Chemical's investor day presentation, May 12, 2023
Slide 1: Medium-term Management Plan (FY2023 to FY2026) Briefing
NIPPON FINE CHEMICAL CO., LTD. Medium-term Management Plan (FY2023 to FY2026) Briefing May 12, 2023 NIPPON FINE CHEMICAL CO., LTD.
Slide 2: Table of Contents
NIPPON FINE CHEMICAL CO., LTD. Table of Contents 1. Review of Medium-term Management Plan (FY2018 to FY2022) 2. Summary of Medium-term Management Plan (FY2023 to FY2026) 3. Capital Policies 4. Sustainability 2
Slide 3: Table of Contents
NIPPON FINE CHEMICAL CO., LTD. Table of Contents 1. Review of Medium-term Management Plan (FY2018 to FY2022) 2. Summary of Medium-term Management Plan (FY2023 to FY2026) 3. Capital Policies 4. Sustainability 3
Slide 4: Review of Medium-term Management Plan: Cosmetic Ingredients Field
NIPPON FINE CHEMICAL CO., LTD. 1. Review of Medium-term Management Plan (FY2018 to FY2022) (Industrial Products Business) —Cosmetic Ingredients Field— Initial target Action Result • Despite a brake put on sales due to the spread of the • Enhance recognition and penetrate the market, aiming to COVID-
Slide 5: Review of Medium-term Management Plan: Fine Chemicals Field
NIPPON FINE CHEMICAL CO., LTD. 1. Review of Medium-term Management Plan (FY2018 to FY2022) —Fine Chemicals Field— Initial target Action Result • Constructed a new plant and an office building with an • Total capital investment of • Strengthen the development of the downstream field, with eye on grow
Slide 6: Review of Medium-term Management Plan: Environmental Hygiene Field
NIPPON FINE CHEMICAL CO., LTD. 1. Review of Medium-term Management Plan (FY2018 to FY2022) (Household Products Business) —Environmental Hygiene Field— Initial target Action Result Established a production and supply system for hand sanitizer ・Further reinforce the core business in response to the sp
Slide 7: Review of Medium-term Management Plan: Other
NIPPON FINE CHEMICAL CO., LTD. 1. Review of Medium-term Management Plan (FY2018 to FY2022) (Other) Initial target Action Result • Dividend payments increased for the sixth consecutive year (FY2018: ¥30/share ⇒ FY2022: ¥57/share) • While striking an optimal balance between capital • Introduced a cons
Slide 8: Review of Medium-term Management Plan: Quantitative Targets
NIPPON FINE CHEMICAL CO., LTD. 1. Review of Medium-term Management Plan (FY2018 to FY2022) (Quantitative Targets) Medium-term Management Plan FY2018 FY2022 (Final year) Changes in (Unit: Millions of yen) comparison with Increase/decrease Actual amount Actual amount FY2018 (%) Target amount from the
Slide 9: Review: Matters implemented other than initial targets
NIPPON FINE CHEMICAL CO., LTD. 1. Review of Medium-term Management Plan (FY2018 to FY2022) (Matters implemented other than initial targets) • Listed on the Prime Market of the Tokyo Stock Exchange (Steadily comply with the Corporate Governance Code) • Formulated the long-term vision (NFC VISION 2030
Slide 10: Table of Contents
NIPPON FINE CHEMICAL CO., LTD. Table of Contents 1. Review of Medium-term Management Plan (FY2018 to FY2022) 2. Summary of Medium-term Management Plan (FY2023 to FY2026) 3. Capital Policies 4. Sustainability 10
Slide 11: Medium-term Management Plan (FY2023 to FY2026)
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) FY2018 to FY2022 FY2023 to FY2026 FY2027 to FY2030 The 13th Medium-term The 14th Medium-term The 15th Medium-term Management Plan Management Plan Management Plan Stage to Stage to Stage to strengthen governan
Slide 12: New Business Segment
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • New Business Segment 12
Slide 13: Review the business portfolio (restructure segments)
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Review the business portfolio (restructure segments) ⇒ With an eye toward strengthening future business strategies, we have subdivided the business segment brought together as industrial products into beaut
Slide 14: Establish strategic products (phospholipids)
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Establish strategic products (phospholipids) Identify phospholipids*, the Company’s proprietary technology product, as a growth driver Will strengthen growth foundation with the phospholipids for pharmaceut
Slide 15: Strategic products: phospholipids (beauty care) market forecast
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Establish strategic products (phospholipids)(beauty care) Source: Cosmetics Market Analysis and Segment Forecasts to 2031 (Maia Research) Forecast of global cosmetics market size (by field) Forecast of glob
Slide 16: Strategic products: phospholipids (beauty care) market and response
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Establish strategic products (phospholipids)(beauty care) Market The Company’s Item Details size Analysis of the current environment response Given the potential (estimate) for future market Approx. Inbound
Slide 17: Strategic products: phospholipids (health care)
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Establish strategic products (phospholipids)(health care) 120 Global pharmaceuticals market size (amount) Global pharmaceuticals market size and average annual growth rate by modality Trillion of yen 100 Ty
Slide 18: Strategic products: phospholipids (health care) open innovation and CDMO
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Establish strategic products (phospholipids)(health care) *Horizontal specialization Open Innovation This is a move also developing in *Shonan Laboratory (in Shonan iPark) • Shonan Laboratory* the semicondu
Slide 19: Perovskite: material for perovskite solar cells
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Perovskite: A material for Perovskite Solar Cells (PSC) (fine chemical) Global market for new-type/next-generation solar cells Technology of Lightweight Billions of yen Japanese and flexible 900.0 origin ¥8
Slide 20: Arbos (hygiene)
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Arbos (hygiene) Hand washing soap Hand sanitizer Concentrated solutions/hand soaps detergents Develop environment-friendly products Enhance the BtoB/BtoC ARBONURSE Add items to the ECO such as pouches, RSPO
Slide 21: Investment in R&D
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Investment in R&D *Realize sustainable production activities through implementation of the materialities • Carbon neutrality • Reduce releases of substances subject to the pollutant release and transfer reg
Slide 22: Investment in R&D
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Investment in R&D 1,200 2.8% 1,100 970 2.7% 1,000 R&D expenses (Unit: Millions of yen) 894 2.7% 825 2.6% Ratio of R&D expenses to net sales 800 717 712 675 2.6% 2.5% 600 2.5% 2.5% 2.4% 2.4% 2.4% 400 2.3% 2.
Slide 23: Numerical managerial goals
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) • Numerical managerial goals Vision of the The 13th Medium-term The 14th Medium-term Company’s Management Plan Management Plan future self 151st fiscal year 155th fiscal year 156th fiscal year 159th fiscal ye
Slide 24: EBITDA margin, operating profit ratio and ROIC targets
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) Ratio of operating profit 22.6% EBITDA margin 19.5% ROIC 16.3% 16.3% 15.4% 15.4% 13.7% 13.9% 12.6% 11.1% 9.0% 7.9% 8.0% 7.4% 6.1% *EBITDA margin: EBITDA / net sales ROIC: Return on invested capital (Operating
Slide 25: 14th Medium-term Management Plan targets by segment
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) The 14th Medium-term Management Plan 155th fiscal year Actual results 156th fiscal year Plan 159th fiscal year Target FY2022 FY2023 FY2026 Operating Operating Operating (Unit: Billions of yen) Net sales EBITD
Slide 26: Breakdown of capital investment
NIPPON FINE CHEMICAL CO., LTD. 2. Summary of Medium-term Management Plan (FY2023 to FY2026) Breakdown of capital investment Amount Remarks (Billions of yen) Expand facilities for the phospholipids for cosmetics (in 2.3 Scheduled for completion in FY2026 Takasago) Digitalization (such as upgrading co
Slide 27: Table of Contents
NIPPON FINE CHEMICAL CO., LTD. Table of Contents 1. Review of Medium-term Management Plan (FY2018 to FY2022) 2. Summary of Medium-term Management Plan (FY2023 to FY2026) 3. Capital Policies 4. Sustainability 27
Slide 28: Capital Policies
NIPPON FINE CHEMICAL CO., LTD. 3. Capital Policies Vision of the The 13th Medium-term The 14th Medium-term Company’s Management Plan Management Plan future self 151st fiscal year 155th fiscal year 156th fiscal year 159th fiscal year 163rd fiscal year Actual results Actual results Plan Target Target
Slide 29: Capital Policies: cash balance plan
NIPPON FINE CHEMICAL CO., LTD. 3. Capital Policies 2.2 Capital Cash and deposits investment 7.1 balance plan Sale of (Unit: Billions of yen) shares held 12.5 Dividends/purchase Depreciation of treasury shares -120 -12.0 Increase in working capital, etc. 8.9 -84 -8.4 7.8 Accumulation of profits, etc.
Slide 30: Trends in dividends per share
NIPPON FINE CHEMICAL CO., LTD. 3. Capital Policies Period of the 14th Vision of the Period of the 13th Medium- Company’s Trends in dividends per share term Management Plan Medium-term future self (Yen) Management Plan (Actual results) (Target) 100 80 70 57 54 33 35 28 30 21 23 23 20 FY2013 FY2014 FY
Slide 31: Table of Contents
NIPPON FINE CHEMICAL CO., LTD. Table of Contents 1. Review of Medium-term Management Plan (FY2018 to FY2022) 2. Summary of Medium-term Management Plan (FY2023 to FY2026) 3. Capital Policies 4. Sustainability 31
Slide 32: Sustainability: Basic Policy
NIPPON FINE CHEMICAL CO., LTD. 4. Sustainability Nippon Fine Chemical’s Basic Policy for Sustainability “Aiming for our sustainable growth and to bring about a sustainable society” Our Basic Policy for Sustainability is established on the basis of the “Smiles on Faces: The Power of KIREI” in our lon
Slide 33: Sustainability: Environment and Human Capital targets
NIPPON FINE CHEMICAL CO., LTD. 4. Sustainability Environment Human Capital 〇 Reduction of CO2 emissions by 38% by FY2030 compared to FY2013 level 〇 Percentage of women employees at 20% or more ・Purchase renewable energy by FY2027 ・Reduce emissions through capital investment/ ・Create an environment i
Slide 34: Statements regarding earnings forecasts
NIPPON FINE CHEMICAL CO., LTD. • Statements regarding earnings forecasts, etc. described in this document are based on the information obtained by the Company at the time of preparation of each document and certain assumptions that it deems reasonable, and are not intended to promise that they will