Toyobo Co., Ltd. · TSE:3101
Toyobo — Investor Presentation (August 2023)
36 slides from Toyobo's investor presentation, Aug 29, 2023
Slide 1: Business Presentation: Environmental and Functional Materials Business
Aug. 29, 2023 Business Presentation: Environmental and Functional Materials Business TOYOBO CO., LTD. Representative Director & Co-COO Head, Environmental and Functional Materials Division Toyobo MC Corporation President & Representative Director, CEO Chikao Morishige
Slide 2: Contents
Contents Ⅰ. Positioning of the Environmental and Functional Materials Business Ⅱ. Toyobo MC Corporation Ⅲ. Growth Strategy Corporate Philosophy System TOYOBO PVVs Ⅳ. Future Development Ⅴ. Appendix 2
Slide 3: Ⅰ. Positioning of the Environmental and Functional Materials Business
Ⅰ. Positioning of the Environmental and Functional Materials Business 3
Slide 4: Positioning of the Environmental and Functional Materials Business within the Toyobo Group
Positioning of the Environmental and Functional Materials Business within the Toyobo Group FY 3/23 Results Operating Net sales Ratio profit Films 146.1 37% 1.6 Life Science 38.1 10% 9.2 Environmental and Functional Materials 110.8 28% 4.0 Functional Textiles and Trading 92.4 23% - 2.5 Real Estate an
Slide 5: Main Domestic and Overseas Bases for the Environmental and Functional Materials Business
Main Domestic and Overseas Bases for the Environmental and Functional Materials Business Bases in Japan Production, R&D Affiliates Sales ＜Japan＞ *Japanese alphabetical order Tsuruga Research and Kureha Ltd. Production Center TNC Corporation. (Environment and fiber) Toyobo MC Corporation TOYOBO KANKY
Slide 6: Contributing to Solving Social Issues through the Environmental and Functional Materials Business
Contributing to Solving Social Issues through the Environmental and Functional Materials Business ( from Sustainable Vision 2030 ) Vision : We will continue to create the solutions needed by people and the earth with our materials and science Relations between five social issues and SDGs Employees’
Slide 7: Reorganization of the Business Portfolio
Reorganization of the Business Portfolio ( from 2025 Medium-Term Management Plan ) Assess and stratify each business into 4 quadrants with 2 axes: “Profitability” and “Growth potential” High New businesses to be Commercialization Businesses focusing Businesses focusing expansion developed Preparatio
Slide 8: Ⅱ. Toyobo MC Corporation
Ⅱ. Toyobo MC Corporation - Environmental and Functional Materials Business - 8
Slide 9: Earnings: Stable profits to date but insufficient growth
Background to Toyobo MC Corporation’s establishment : Earnings Net sales and Operating profit margin in Toyobo group’s environmental and functional materials business *without consolidated eliminations 100 10.0% Net sales (FY3/15=100) 50 5.0% Operating profit margin 0 0.0% FY3/15 FY3/16 FY3/17 FY3/1
Slide 10: Business Strengths and Issues
Background to Toyobo MC Corporation’s establishment : Business Strengths and Issues * TOYOBO estimation Strengths - Lineup of cutting-edge products - Considerable development capabilities Recovery of solvent Seawater desalination - Customer base centered VOC recovery equipment membranes Top share fo
Slide 11: Changes in External Environment
Background to Toyobo MC Corporation’s establishment : Changes in External Environment Intelligence ◼ Limitations of Japan-based businesses The epicenter of decarbonization ⇒Need to rebuild global sales, The forefront of materials innovation production, and development Cash cow Sharpening of technolo
Slide 12: Becoming a new functional materials manufacturer
Becoming a new functional materials manufacturer Toyobo Co., Ltd. Areas to be strengthened ●Acceleration of global expansion ●Structure that can adapt to changes in upstream and downstream business environments Mitsubishi Corporation Strengths ●International marketing/procurement functions/networks
Slide 13: Strengths of Mitsubishi Corporation
Strengths of Mitsubishi Corporation Leveraging global management know-how and business transformation capabilities - Overseas alliances / M&A know-how Global expansion - Global Network - Marketing strategy formulation/implementation Marketing - Uncovering broad-ranging user needs Sales / Procurement
Slide 14: Structure that can adapt to changes in the business environment
Structure that can adapt to changes in the business environment Establishment of an organization that can adapt to changes in the business environment and an organization and management foundation that can respond flexibly Before After Business unit system Functional division system（3 Divisions × 2
Slide 15: Portfolio Management
Portfolio Management Take strategic action in accordance with the portfolio strategy, which is based on business life cycle Growth Cash-cow Transformation Active investment / Top-line expansion Fortifying cash cow Improve profitability and position business model transformation Mobility and Electron
Slide 16: Growth areas
Growth areas Automotive electrification and Engineering plastics electronics (EV) VYLON / HARDLEN Mobility VYLON / HARDLEN High-speed transmission (5G/6G) Carbon-fiber reinforced High-speed composite material communication Reduction of environmental impacts mainly in the manufacturing of LIB separat
Slide 17: Ⅲ. Growth Strategy
Ⅲ. Growth Strategy ⚫ Mobility ⚫ High-speed communication ⚫ Environment (air/water) ⚫ Renewable energy 17
Slide 18: Mobility: Outline of Engineering Plastics
Mobility: Outline of Engineering Plastics Case examples of the adoption of our products - Applications: Pillar Garnish Automotive roughly 70%, home appliances, IT, etc. Around fuel filler Door handle - Our strengths: Engine Cover Heat-proof, highly durable, high rigidity, Fuel Tube nice appearance,
Slide 19: Mobility: Future Development of Engineering Plastics
Mobility: Future Development of Engineering Plastics Global electric four-wheel vehicle sales volume forecast ◼ Responding to the transition to EVs (thousand units) 120,000 80% ・Increased use in components around EV batteries 70% ・Insulation, sound absorption, and lighter weight mainly 100,000 60% w
Slide 20: Mobility: Outline of VYLON / HARDLEN
Mobility: Outline of VYLON / HARDLEN “VYLON” Copolymerized polyester • Applications Examples of our products used in automobiles - Adhesives (packaging/sealants/FPCs) ”VYLON” - Paints/coatings (home appliances/vehicles/cans) “HARDLEN” • Our strengths Interior adhesives - Superior adhesive on base ma
Slide 21: Mobility: Future Development of VYLON / HARDLEN
Mobility: Future Development of VYLON / HARDLEN ◼ Responding to the transition to EVs Expanding sales of “VYLOSHOT” ・Low-pressure sealing and molding polyester resin (one type of “VYLON”) ※Low-pressure sealing and molding: Low-melting point thermoplastic resin is injected into a mold at low pressure
Slide 22: High-speed communication: Future development for applications
High-speed communication: Future development for applications “VYLON” “HARDLEN” • Applications: Interlayer adhesive used on FPCs (flexible printed circuit boards) for high-speed transmission (5G/6G) • Our strengths: Low dielectric properties for high-speed, high-capacity 5G/6G data transmission, as
Slide 23: High-speed communication: Carbon-fiber Reinforced Composite Material
High-speed communication: Carbon-fiber Reinforced Composite Material “HAYATE” • Recycled carbon fiber / nonwoven fabric made from thermoplastic fiber; for reinforced plastic • Applications: Material for lightweight automotive components (electromagnetic wave shielding materials, under guards, etc.)
Slide 24: Environment: Outline of VOC recovery equipment
Environment : Outline of VOC recovery equipment VOC recovery equipment Equipment for VOC* emissions treatment ,equipped with “K-FILTER” * VOC: volatile organic compounds “K-FILTER” TOYOBO’s proprietary activated carbon fiber adsorbent, for which TOYOBO was the first in the world to put it into produ
Slide 25: Environment: Future development of VOC recovery equipment
Environment: Future development of VOC recovery equipment Size/forecasts of global automotive LIB market by xEV type (MWh) ◼ Responding to the transition to EVs 1,400,000 Expanding sales of VOC recovery equipment 1,200,000 ・Steadily capturing LIBS demand 1,000,000 ・Bolstering maintenance capabilitie
Slide 26: Environment: Outline of Water Treatment Membrane (RO membranes)
Environment: Outline of Water Treatment Membrane: (RO membranes) Membrane element RO membranes (RO: Reverse Osmosis) Total length 2m • Cellulose triacetate (CTA) hollow fiber membranes *Only our company for both CTA and hollow fiber type • Applications: seawater desalination Outer diameter 28cm • Ou
Slide 27: Environment: Future Development of Water Treatment Membrane (FO membranes)
Environment: Future Development of Water Treatment Membrane (FO membranes) FO membranes (FO：Forward Osmosis) Concentrated seawater DS (Draw solution) Water Recovery *Only our company for hollow fiber type FO membranes system Water High concentration ◼ Energy savings in seawater desalination process
Slide 28: Environment: Future Development of Water Treatment Membrane (BC membranes)
Environment: Future Development of Water Treatment Membrane (BC membranes) BC membranes (Brine Concentration) Treating high-concentration salt water • Principle Supply Concentrated Supplying solutions of equal concentration to the inlet solution solution on the inside and outside of a hollow fiber m
Slide 29: Renewable energy: High-performance fibers
Renewable energy : High-performance fibers “IZANAS” Ultra-high-strength polyethylene fiber • Properties: Strong, shock absorption, water resistance • Applications: Ship mooring rope, fishing lines, etc. ➢ Future development Strengthening overseas network and distribution channels (exploring new appl
Slide 30: Ⅳ. Future Development
TOYOBO IV. Future Development
Slide 31: Summary of Future Development
Summary of Future Development Product Future development Growth areas Understanding the needs of Europe and Mobility Lightweight materials and US and delivering comprehensive proposals customization to foreign-affiliated manufacturers Engineering plastics EV Low conductivity resin Boosting sales in
Slide 32: Expansion of the Environmental and Functional Materials Business
Expansion of the Environmental and Functional Materials Business Pressing ahead with portfolio management and organic/inorganic growth strategies Net sales (¥bn.) Operating profit (¥bn.) 300.0 250.0 25.0 250.0 20.0 20.0 200.0 Resin and chemicals 145.0 15.0 12.5 150.0 (Mobility and Electronics, etc.)
Slide 33: Ⅴ. Appendix
TOYOBO V. Appendix
Slide 34: Genealogy and History of Technology
Genealogy and History of Technology Establishment of Osaka Boseki in 1882 ※Excerpts from our 2022 Integrated Report, p. 105-106 Mie Boseki in 1886, adopting production equipment and technology from the U.K. Natural fiber spinning and Composite fiber weaving technology apparel products - Launched acr
Slide 35: Please Note
Please Note The business performance forecasts and targets included in the business plans contained in this presentation are based on information known to the Company’s management as of the day of presentation. Please be aware that the content of the future forecasts may differ significantly from ac
Slide 36: ©️ TOYOBO CO., LTD. All rights reserved.
©️ TOYOBO CO., LTD. All rights reserved.