IR UPDATE Nomura Investment Forum 2011

Transcription

1 IR UPDATE Nomura Investment Forum 2011 November 30 th, 2011 Nobu Koshiba, President (4185 JP)

2 1. Key Essence of JSR 20i3 2. Results & Forecast of 3. Progresses of JSR 20i3 4. For the mid-term targets 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 status of the market surrounding the company. * JSR's accounting period (fiscal year) is defined as the period from April 1 to March 31 of the following year. When noted "", this indicates the period from April 1, 2011 to March 31, 2012.

3 1. Key essence of JSR 20i3 Income targets * Published in Apr Returning back to record profit levels (operating income of 60 billion yen) in FY2014. Aiming to reach operating income of 100 billion yen in FY2021 or earlier. * Published in Apr 2011 Achieving sustainable growth again through continuous launch of new businesses.

4 1. Key essence of JSR 20i3 Driving forces for Income targets * Published in Apr Shift to a more profit-generating structure in the petrochemical products business Maintaining leadership and capturing the volume zone in the fine chemicals. Growth rates which are higher than those of our user industries * Published in Apr 2011 Accelerating commercialization of strategic businesses Growth rates which are higher than those of the Fine chemicals in the past

5 2. 2nd Quarter Results of Strong and steady demands of synthetic rubber for tires. Succeeded in the product mix improvement in the fine chemicals business. 4 (Unit: JPY Bn) Q2 Results ROS Q3 Results Q4 Results Q1 Results ROS Q2 Results ROS QoQ Petrochemical products % Sales Fine chemicals & Strategic businesses % Total Petrochemical products 4.2 8% % % % +5% OP income Fine chemicals & Strategic businesses % % % +19% Total % % % +11% * JPY/USD (Market Average) OP income (JPY Bn) Petrochemical products Fine chemicals &others (Petrochemical products) Posted a record quarterly operating income in the Q Q2 Q3 Q4 Q1 Q2 (Fine chemicals & Strategic businesses) Turned to growing phase on a QoQ OP basis.

6 2. Full year projection of Petrochemical products 5 Petrochemical products Sales & OP trends (Unit: JPY Bn) Q1 Q2 (e) YoY(e) Elastomers % Sales Plastics % Total % OP income Apx % Naphtha price (JPY/kl) 46,150 48,750 59,000 55,000 57,000 52,000 54, Automobile production in Japan (thousand unit) 650 (thousand ton) Tire production in Japan Source: JAMA FY2010 FY2010 e 450 Source: JATMA FY2010 FY2010 e

7 2. Full year projection of Fine chemicals & Strategic businesses 6 Fine chemicals & others Sales & OP trends (Unit: JPY Bn) Q1 Q2 (e) YoY(e) Semiconductor Apx.26 Flat Sales FPD Apx.33 5% Strategic & others Apx % Total % OP income Apx % JPY/USD (market average) (MSI) Silicon wafer shipment area trends 95% LCD panel manufacturers utilization ratio % 2300 Source: Gartner Q1 Q2 Q3 Q4 Q1 Q2 e Q3 e Q4 e 65% Source: JSR Q1 Q2 Q3 Q4 Q1 Q2 Q3 e Q4 e

8 2. Full year projection of Expect to achieve the original operating income guidance. 7 (Unit: JPY Bn) Results Results ROS Projection ROS(e) HoH(e) Projection ROS(e) YoY(e) Petrochemical products % % Sales Fine chemicals & Strategic businesses % % Total % % Petrochemical products % Apx % Flat- +10% Apx % % OP income Fine chemicals & Strategic businesses % Apx % % Apx % 10-15% Total % % +10% % +5% * JPY/USD (Market Average)

9 3. Progresses of JSR 20i3 8

10 * Published in Apr Key essence of JSR 20i3 Petrochemical products 9 Secure stable revenues that are not influenced by market conditions. * Published in Apr 2011 Expand high value-added product lineups, including S-SBR. Shift to a more profit-generating business structure

11 3. Progresses of JSR 20i3 Petrochemical products 10 (Unit: JPY Bn) FY2008 (peak) Results ROS FY2014 Targets ROS CAGR Projection ROS Sales OP income % % 20.0 Apx. 10% 5% Apx % The target for the medium-term plan is expected to be achieved in this fiscal year (based on the estimates). The OP income target will be stretched further. We We are are maintaining maintaining a a high high profit profit rate rate due due to to the the results results of of structural structural reform reform enacted enacted after after the the Lehman Lehman Shock Shock in in Due Due to to timely timely and and proactive proactive investment investment in in competitive competitive product product groups groups (ex. (ex. IIR), IIR), JSR JSR improved improved its its product product mix. mix. (JPY Bn) 12 8 OP income(elastomers) OP income(plastics) ROS(Petrochemical) 12% 8% (thousand ton) 400 Sales volume of Elastomers (non-consolidated) Ratio of S-SBR(volume) Ratio of IIR(volume) 11% 9% 4 4% 300 7% FY2010 FY2010 e 0% -4% -8% 200 FY2010 FY2010 e 5% 3%

12 3. Progresses of JSR 20i3 Petrochemical products 11 S-SBR (Solution SBR) Expansion of the production capacity at the Yokkaichi Plant(+25kton) will be completed in November Shipment will begin in January A tight supply/demand condition is likely to continue in the longer term. While the S/D will be balanced around 2015 due to aggressive capacity expansion of several suppliers, the market will continue to grow by more than 8% annually, supported by booming demand of eco tires.

13 1. Key essence of JSR 20i3 Fine chemicals (Semiconductor & FPD) * Published in Apr Increasing market share of the ArF photoresist Expansion of multi-layer materials Promoting cutting-edge packaging materials * Published in Apr 2011 FPD industry continues to grow Capturing the FPD market that has been divided into two opposite segments (High-end & Commodity) Growth rates which are higher than those of our user industries

14 3. Progresses of JSR 20i3 Fine chemicals & Strategic businesses 13 (Unit: JPY Bn) FY2008 (peak) Results ROS FY2014 Targets ROS CAGR Projection ROS Sales % OP income % 49.0 Apx.20% 30% Apx % Ratio of Strategic businesses to total sales 8% NA Stock adjustments in the DRAM and LCD panel industries are expected to have negative impacts on the progress. Significant impact of the yen value appreciation. Changes in the business environment. Internal growth has progressed as planned, although there are negative impacts of macro environments above. The three-year plan for the strategic business has progressed steadily.

15 3. Progresses of JSR 20i3 Semiconductor materials 14 Steady promotion of leading-edge & value added technologies and market share increase of ArF resist Lithography materials * (Change in volumes, FY2010=100) 200 ArF _ dry ArF _ Im TCX FY2010 FY2010 e 10% 40% (e) 40% ( projection_ratio of immersion type in ArF, volume base) Cutting-edge packaging materials * (Change in volumes, FY2010=100) WPR THB FY2010 FY2010 e +25% (_YoY projection, volume base)

16 3. Progresses of JSR 20i3 Semiconductor materials Development status of leading-edge lithography materials ArF Dry ArF Immersion Non-Critical (BEOL/Impla) DP DSA EUV EUV Although some delays are observed, based on the hearings from customers, the main focus in future technology is still EUV. As for the updated forecast, the DP and DSA technologies will currently expand and emerge. In all technologies, the Company succeeded in achieving results that demonstrated leading edge technologies. Multi-layer materials (TARC,BARC) New multi-layer materials (for DP,EUV,3D,NIL,DSA) 22nm HP was achieved by DSA technology under ArF 15nm HP was achieved by chemically amplified EUV resist Courtesy of SEMATECH

17 3. Progresses of JSR 20i3 FPD materials The growth in the alignment films and the mobile device materials market, where high functionality and further innovation are required, can avoid commoditization of FPD materials business. New Alignment film * (Change in volumes, FY2010=100) Conventional mode New mode FY2010 FY2010 e 5% 40% (e) 40% ( projection_ratio of new mode in alignment film, volume base) Retardation film 3.0 ( _YoY result, volume base) Di-electric film * (Change in volumes, =100) * (Change in volumes, =100) +15% ( _HoH projection, volume base) e e

18 3. Progresses of JSR 20i3 FPD materials Promoting localization of all value chains excluding platform development, to optimize competitive conditions. 17 R&D Source Production Sales Tech support China Established a marketing site in Shanghai Embarked on feasibility study for a new production site. Delay in the expansion of the LCD panel market in China, for the time being. However, it is expected to take off in Korea / Taiwan Established a R&D center within the production site in Korea (June 2011). Will establish a R&D center within the production site in Taiwan (Dec 2011). Has promoted in-house production of raw materials to reduce the foreign exchange risk. Japan Customer site Maintained as a platform technology development center. :Existing site :New site :FS in progress

19 1. Key essence of JSR 20i3 Strategic businesses 18 Innovating businesses, not just technologies Growing through cooperation, not just independently Aiming to earn net sales of JPY 35 Bn in FY2014 * Published in Apr 2011

20 3. Progresses of JSR 20i3 Environment & Energy materials 19 Binder for Lithium-ion batteries Secure demand increase by entering the positive electrode application and the vehicle application markets. Improve the share of existing binders for negative electrodes. In addition, capture the need for shifting to water-based in the positive electrode applications. Efforts for aggressive entry into vehicle applications, based on technologies accumulated in the consumer product field, and in close collaboration with leading battery manufacturers. Further development of polymer structure/end group modification, and expansion of their applications to stationary batteries in the consumer market and next-generation battery materials. 1 Unique evaluation technology Although the Company is a material manufacturer, it has established a consistent evaluation system that covers every process from battery assembly to property evaluation. Differentiate by the reliability evaluation system. 2 De facto standard and customization Fully utilize the global business sites in China and Europe, where increase in demand for LIBs is expected, in addition to Japan and Korea where LIBs have become popular. Capture the expected growth of demand, utilizing the success model in the fine chemicals business (JPY Bn) Forecast for water-based binder Phase 3 Phase 2 Phase Source: JSR Stationary batteries Positive electrode / Vehicle Negative electrode / Vehicle Negative electrode / Consumer Phase 3 (CY2015- ) :Positive electrode / Vehicle Phase 1 Phase 2 (CY ) :Negative electrode / Vehicle (CY ) :Negative electrode / Consumer

21 4. For the mid-term targets The external environment has changed significantly in six months. 20 JSR 20i3 scenario FY2014 CAGR + 6~7% :Auto production (Asia) + 5~6% :Auto production (Global) + 8~9% :Tire production (Asia) + 6~7% :Tire production (Global) + 6~7% :Wafer starts (Global) + 4~5% :Semi market (Global) + 10~11% :LCD panel area (Global) + 2~3% :LCD panel market (Global) CY2011 forecast*(yoy) + 5% :Auto production (Asia) + 5% :Auto production (Global) + 4% :Tire production (Asia) + 4% :Tire production (Global) + 0.2% :Wafer starts (Global) 0.1% :Semi market (Global) + 2% :LCD panel area (Global) 7% :LCD panel market (Global) 85 :Assumed exchange rate (JPY/USD) 80 :Assumed exchange rate (JPY/USD) March 2011 Great East Japan Earthquake October 2011 Great flood in Thailand Source: JSR, *Above forecasts do not include the impacts of down trend of world economics or Great flood in Thailand.

22 4. For the mid-term targets Our goal remains unchanged: to achieve an operating income of JPY 60 Bn in FY (Unit: JPY Bn) Petrochemical products Projection ROS Petrochemical products Regardless of the movement in material prices, the spread should be maintained. Increase the ratio of the Group A business. * FY2014 Targets ROS Sales OP income Fine chemicals & Strategic businesses Total Petrochemical products Fine chemicals & Strategic businesses Apx % Apx % Total % Semiconductor materials The market share of ArF resist must be recovered. Improve the product mix by steady expansion of advanced materials. FPD materials Depart from dependence on 5 LCD materials. Expand into the mobile/oled businesses. Promote localization to improve competitive conditions Apx.10% ** 49.0 Apx.20% over 60.0 Apx.15% Ratio of Strategic businesses to total sales NA Ratio of overseas sales * 44% ROE * 11% * The ratio of overseas sales and ROE are actual figures for fiscal Strategic businesses ITO: Promote the ARTON-based films start-up. Binder for LiB: Accelerate the expansion of business for vehicle and positive electrode. Biomedical: Continue steady growth LIC: Plan serious market introduction in % 50% 12% * Aiming to achieve by FY2014 ** The figures consist of earnings from Fine chemicals and existing Strategic businesses. They do not include earnings/losses from further new generation businesses.