Blueprint of New Mid term Business plan

Transcription

1 Blueprint of New Mid term Business plan Nomura Investment Forum 2013 December 3, 2013 Nobu Koshiba, President JSR Corporation (4185 JP)

2 Topics Theme of New Mid term Business Plan Progress and Tasks of Three Main Businesses Summary

3 Theme of New Mid term Business Plan

4 Progress of JSR20i3 We saw the Petrochemicals business expand more strongly than expected, posting a record operating income during JSR20i3. Meanwhile, we saw net sales grow in the Fine Chemicals and Other Products business, but struggled to increase operating income. Net sales Operating income Unit: 100 million yen Unit: 100 million yen 5,000 4,000 Fine Chemicals and Other Products Petrochemicals 3,715 3,407 3,500 4, Fine Chemicals and Other Products Petrochemicals , , , FY 2011 FY 2012 FY 2013 FY 2014 Plan (Fiscal year(fy) means year ended March 31) 0 FY 2011 FY 2012 FY 2013 FY 2014 Plan

5 Objectives of New Mid term Business Plan (i) Increase the top line in the Petrochemicals business, (ii) Improve profitability in the Fine Chemicals business, and (iii) Aim for sustainable growth in 2020 and later by commercializing the strategic businesses Results and Tasks of JSR 20i3 5 Results (i) Expansion of operating income in the Petrochemicals business Global development of S SBR and improvement of the break even point (ii) Definition of the direction of the strategic businesses (Focusing on LIC and life sciences) Tasks (i) Stagnation of operating income growth in the Fine Chemicals business (ii) Delayed launch of the strategic businesses Objectives of new mid term business plan Expansion of business scale and operating income (i) Promotion of global development of the S SBR business (ii) Expansion of business concentrating on the process of Front End of Line (FEOL) (iii) Strengthening of our selection of products used in mobile and wearable equipment (iv) Reorganization of the strategic businesses Preparation for achieving sustainable growth in 2020 and later (i) Increasing the number of S SBR bases globally (ii) Exploring new business areas in the digital industry (iii) Creating a third pillar of business centering on the strategic businesses

6 Theme of New Mid term Business Plan: Growth path We will keep Vision 2020 unchanged. We will strive for sustainable growth to achieve the long term target. (i) Realizing the expansion of operating income = Commitment (ii) Preparation for further growth = Challenge for Big Picture and risk 1,000 (100 million yen) New mid term business plan under construction Vision 2020 unchanged (FY) (Fiscal year(fy) means year ended March 31)

7 Progress and Tasks of Three Main Businesses

8 Progress and Tasks of the Elastomers Business

9 Progress of the Elastomers Business We have established a business model that enables us to secure stable operating income regardless of a change in raw material prices. We will strive for further expansion of the scale of business and stabilize profitability. Comparison with changes in our operating income and butadiene (BD) prices We succeeded in maintaining stable operating income in the first half of FY 2014 despite a sharp drop in BD prices. (Unit; Mil ) (BD Price; $/Ton) 9 (FY) (Fiscal year(fy) means year ended March 31) (JSR prepares BD price using data of ICIS.)

10 Growth Story of the Elastomers Business S SBR for fuel efficient tires is a growth driver in the Elastomers business. We will aim to capture the top share in the global market using technological capability, production capacity and cost competitiveness. (Unit; Ton) Growth driver Launch of a plant in Thailand 1st phase: 50,000 tons (at the end of 2013) 2nd phase: 50,000 tons (in 2016) Preparation for the new midterm business plan Establishment of the fourth production base Plant in Hungary: 60,000 tons (in 2017) 10 (FY) (Fiscal year(fy) means year ended March 31)

11 Growth Story of the Elastomers Business We saw sales of S SBR steadily expand in FY 2014 following FY We will secure the most advantageous position by maintaining the largest S SBR production capacity in the industry. Progress of S SBR sales volume Sales volume for S SBR has steadily grown despite the stagnation of the tire market. Competition environment and our position We have the leading position in terms of production capacity in a market that has been growing at a double digit pace every year. ( 07=100%) 300,000 Forecast of S SBR demand 1,250,00 250,000 1,050,00 200,000 Forecast of S SBR demand (risk case) 850, , ,000 (Right axis) Total production capacity in the industry 650, ,000 50,000 (Left axis) Production capacity by company 250, , (JSR has prepared the charts on this sheet based on statistics of LMC2013, IISRP 2013 and industry journals, etc.) (FY) JSR A B C D E F <Forecast of supply/demand of S SBR in 2017 (JSR s estimate)> JSR Group (Fiscal year(fy) means year ended March 31)

12 JSR BST Elastomer Co., Ltd. (JBE) (at Map Ta Phut, Thailand) began manufacturing S SBR.

13 Progress and Tasks of the Fine Chemicals Business

14 Macro Environment of the Fine Chemicals Business There is a visible change in the digital industry: mobile and wearable equipment and content have served as the growth driver of the digital industry in place of PCs and large TVs. Growth opportunities Growth in volume and technological innovation (i) Growth in the field of mobile equipment (short term) (ii) New long term growth market (interfaces,sensors,connectivity/power) Commoditization (i) Commoditization of large displays and cutting edge semiconductors has progressed. (ii) Trendsetters have moved to the downstream side of the digital industry. 14 Threat Efforts under the new mid term business plan Semiconductor materials business Focusing on FEOL where technological innovation is progressing Concentrating R&D investment in Yokkaichi FPD materials business Expanding the product portfolio in the field of mobile and wearable equipment Thoroughly implementing low cost operations Exploring business opportunities in new business areas Miniaturization, high density Energy saving User interface

15 Progress of the Semiconductor Materials Business Immersion ArF has finally gotten onto a growth path. Sales of immersion ArF Sales of immersion ArF increased significantly from the 2nd quarter of FY Their sales are expected to grow further from the 4th quarter of FY st quarter of FY 2013 base of 100% Forecast of sales of immersion ArF Sales of immersion ArF are expected to expand due to a rise in the market share of 2X generation products. FY 2013 base of 100% 15 (FY) (Fiscal year(fy) means year ended March 31) (FY)

16 Progress of Display Materials We are expected to secure a stable income stream by establishing an integrated manufacturing, marketing and technology system globally, centering on the Asian region. We will focus on expanding our product portfolio in the field of mobile equipment. Cross section view of a display Cover Glass OCR Film substrate TSP TAC Air Gap Functional coating materials Touch panel Adhesive agent Polarising plate LCD cell Hard coating materials, antifouling coating materials, refractive rate adjustment coating materials Vertical ITO film, conductive ink, pattern forming materials Retardation film Alignment film, insulator, protective coating, spacer, color pigmented resist, black resist Integration Growth of sales of main materials used outside cell FY 2012 base of 100% 16 Glass(LCD) LCD LC Panel Glass(LCD) Light guiding plate Back light CMOS sensor 16 Cross linked particles ink LED materials Resin for lenses, NIR filters, LCD applied materials, black resist (FY) (Fiscal year(fy) means year ended March 31)

17 Progress and Tasks of the Strategic Businesses

18 Development of the Strategic Businesses We will reorganize the strategic businesses. We will focus on the LIC and Life Science businesses with our eyes toward Development of the strategic businesses FY 2014 Petrochemicals FY 2015 and later Petrochemicals Functional chemicals 18 Fine Chemicals Strategic Electronic materials FPD materials Optical materials LIC Life Sciences Functional chemicals Precision materials and processing Next generation business Fine Chemicals Strategic (Fiscal year(fy) means year ended March 31) Electronic materials FPD materials Optical materials LIC Focusing on Life Sciences Next generation business Precision materials and processing

19 Forecast of the Super Capacitor Market The super capacitor market is expected to grow to approximately 110 billion yen in 2017 and 210 billion yen in Except automobiles FY2014 (33.7 billion yen) FY2018 (77.2 billion yen) FY2021 (130.4 billion yen) *Energy Industry : Peak-cut, PV, Wind Power applications etc. Automobiles FY2014 (9.9 billion yen) FY2018 (34.3 billion yen) FY2021 (80.3 billion yen) *1. Market size of super capacitors(>300f) is estimated by JME. (Reference data: HIEDGE, Fuji-Keizai, Navigant Research) *2. Market 19 for FCV(fuel cell-powered vehicle) will be also confirmed. (Fiscal year(fy) means year ended March 31)

20 Growth Scenario of LIC Under the new mid term business plan, we will aim for full scale commercialization of LIC using its advantages: (i) better performance and durability, (ii) growing track record, and (iii) expanding production capacity. Expansion of the business using the three advantages Better performance and durability Low resistivity, high voltage, and high durability Technological level compared to customers expectations JME (present) JME (target in 2015) Competitors (present) Voltage Low resistivity 100% 80% 60% 40% 20% 0% Durability Growing track record Adopted in the field of uninterruptible power supply, peak cut, and SWM Supply capacity Drastically increasing production capacity ((FY) 20 (Fiscal year(fy) means year ended March 31)

21 Growth Scenario of the Life Science Business We will accelerate growth through an alliance with MBL. We will develop the bio drug discovery support business in the downstream market and expand into the bio drug business. Expansion of the scope of business Raw materials Process materials Fundamental research Application research Clinical trial Review and approval Assay Screening Lead Preclinical Processing and optimization manufacturing technology Formulation Beads& medical polymers It takes 10 to 20 years to launch a product. Product Startup venture company, venture capital investment (Bio drug business) from research reagents to diagnostic agents and antibody medicine seeds Bio drug purification process materials Reagents Appliances Test reagents and kits Cell culture and kits Equipment and devices 21 OEM (Bio drug discovery support business) Development in the downstream market Synergy of alliance JSR Alliance with Medical & Biological Laboratories (MBL)

22 Growth Scenario of Life Science Business toward 2020 Under the new mid term business plan, JSR and affiliated companies will aim at achieving sales of 20 to 30 Billion yen. Roadmap of the Life Science business HOP Development from particles to diagnostic agents Sales reached billions of yen. STEP Move up to the next business stage, bringing sales to more than 20 Billion yen Diagnostic agent materials Bio process materials JUMP Expand as the core business by implementing M&A etc. Medical polymer materials (FY) (Fiscal year(fy) means year ended March 31)

23 Summary

24 Summary Under the new mid term business plan, we will complete short and medium term tasks. Focused themes of the four main businesses Petrochemicals business Further improving the break even point Developing the S SBR business globally FPD materials business Semiconductor materials business Expanding the FEOL peripheral business including ArF Concentrating R&D and production investment for 20 nm and later in Yokkaichi strategic businesses 24 Thoroughly implementing low cost operations for large television display materials Expanding the product portfolio of mobile and wearable devices Reorganization of the businesses Focusing on LIC/Medical businesses

25 Theme of the New Mid term Business Plan: Growth Path We will keep Vision 2020 unchanged. We will strive for sustainable growth to achieve the long term target. (i) Realizing the expansion of operating income = Commitment (ii) Preparation for growth = Challenge for Big Picture and risk 1,000 (100 million yen) New mid term business plan (i) Realizing the expansion of operating income Petrochemicals: increasing the top line Fine Chemicals: improving profitability (ii) Preparing for further growth Achieving operating income of 100 billion yen (i) LIC and Life Science businesses will grow into the third pillar of business. (ii) The world s No.1 S SBR manufacturer (iii) New growth in the Fine Chemicals business (FY) (Fiscal year(fy) means year ended March 31)

26 Spring 2014 New Mid term Business Plan The forecasts, future plans and strategies made in this document contain a variety of uncertain factors, since it has been prepared based on judgments from currently available information. Actual business results may differ from those projected, depending on factors such as the economic state of the market surrounding the company.