Present Situation and Growth Strategy in the Automotive Materials Business

Transcription

1 Present Situation and Growth Strategy in the Automotive Materials Business Yuji Enatsu Director Responsible for Automotive-Related Business Units, General Manager of International Dept. High Performance Plastics Company Sekisui Chemical Co., Ltd. 12 December 2007 Contents 1. High Performance Plastics Company -Midterm Management Plan 2. Automotive Market ment 3. Sekisui s s Automotive Materials Business 4. Automotive Materials Business Targets - AT1000 Plan - 5. AT1000 Plan Strategy 6. Sekisui Automotive Products with Global Prominence -1-

2 High Performance Plastics Company -Midterm Management Plan -1 Sales & Operating Income Trends Sales (billion yen) Operating Income Margin 6.1% 6.6% % 8.0% 8.4% Sales (+14% year-on-year) GS21-Go! Go! Frontier % Operating Income (+21% year-on-year) 25.0 Operating Income (billion yen) 12.0% Sales 30.0 Operating Income FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Forecast Original Plan Chemistry for your Win Continued Offering of Chemical Solutions to Major Customers tomers GS21-Go! Go! Frontier High Performance Plastics Company -Midterm Management Plan -2 Company Policy Premium Company Operating Income Margin 12% Business Expansion Reinforcing 3 strategic businesses Generation of new products & new business Expansion of overseas business Structural Reformation Disposition of unprofitable business Changeover of business structures

3 Reinforcing Strategic Business Sales Trend in the 3 Strategic Business Fields (billion yen) 61.0 (35%) High Performance Plastics Company -Midterm Management Plan -3 3 Strategic Business Fields in FY2006, 61% of Division Operating Income Acquisition of Daiichi Pure Chemicals 69.0 (38%) (38%) (39%) *( ) : Ratio of the 3 Strategic Business Fields to Total Sales GS21-Go!Frontier Go!Frontier (44%) (48%) AT Business Achieved Midterm Plan Targets One Year Ahead of Schedule MD Medical products field IT IT-related materials field AT 65.0 Automotive materials field FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Forecast Midterm Plan -4- High Performance Plastics Company -Midterm Management Plan -4 Expanding the Number of Products with Top-share Worldwide AT IT MD Total No. of Top-share Products Worldwide FY2005 FY Products with Top Market Share Worldwide Interlayer Film for Automobiles, High-performance Interlayer Films, Cross-linked Polyolefin Foams (PP Foam) Spacers for Liquid Crystal Displays, Electrically Conductive Micro Particles for Liquid Crystals, General Purpose Butyral Resins, (UV Sealing Agents) (Reagents for Cholesterol Tests, Test Columns for Diabetes) ( ) shows products expected to become No.1 in % yearon-year -5-

4 High Performance Plastics Company -Midterm Management Plan -5 Core and Main Products Micro Particle Adhesion Precision Molding AT (Automotive Materials Field) Porous Microsphere for Exhaust Gas Filters Foamed Particles for Weight Savings Solar Control Film for Automotive Applications Low Smell, Ultralow VOC Tape Interlayer Film for Automobiles Cross-linked Polyolefin Foam Interior and Exterior Materials for Automobiles I T (IT-related Materials Field) Spacers for a Liquid Crystal Displays Electro Conductive Micro Particles Joining Particles for Substrates Adhesive Tape for Protection Double-sided Adhesive Tapes for LCD & Semiconductors Retardation Film MD (Medical Products Field) Latex Particles for Diagnostics Test Columns for Diabetes Point of Care Testing Medical Tapes Plastic Vacuum Blood Collection Tube Polyolefin Materials for Medical Applications *VOC : Volatile Organic Compound -6- Automotive Market ment-1 Global Market Market Transition Growth of 3% p.a. Globally. Frontiers of Growth Centered Market Expansion. Growth Rate is Low in North America, Western Europe, Japan & Korea, but Volume is Still High Trend of Automobile Production in Each Region. Unit: one million cars % CAGR % CAGR Market Characteristics -specifications are Demanded on a Global Basis Without Regard to Locality. 3.2% CAGR South Asia China/ Taiwan Middle & East Europe South America Middle East/Africa North America Western Europe Japan/Korea * Source: CSM World-wide -7-

5 Automotive Market ment-2 Automotive Market Trends Needs for Automotive Parts ment Growth of Automotive Industry <challenges in the automotive industry> Reducing CO2, Improving Fuel Efficiency, Treatment of Emissions Increase in mentally Cutting Weight of Parts Responsive Cars Reduction in Thermal Loading Diesel, Hybrid, Electric etc. Heat Dispersion & Resistance Prevention & Pedestrian Protection IT Application of Electronics Increasing mental Burden Overcoming Trade-offs Interior ment Consciousness of Parts Design Family of Products Sekisui s s Automotive Materials Business-1 Interlayer Film for Laminated Glass Front & Rear Bumper etc. ment PP Foam for Instrument Panel Acoustic & Solar Control Interlayer Film Low Smell, Ultra-low VOC Tape Roof Console Console Box Foamed Front & Back Door-trim Light Weight Package Tray etc. Low Smell, Ultra-low VOC Tape PP Foam for Instrument Panel Acoustic & Solar Control Interlayer Film Acoustic Control Interlayer Film etc. We Supply More than 50 Material and Product Items

6 Sekisui s s Automotive Materials Business-2 Package Responding to New Needs from the Market: ment, and in Automobiles Composite Design Precision Polymerization, Coating Control Plastic Design Injection Molding Foaming Control Micro Particle Composite Material Design Plastic Design Injection Molding Plastic Design Multiple-layer Molding Light-weight Vibration Reduction Materials Low Smell, Ultra-low VOC Tapes Metal Alternative Plastic Parts PP Foam with Sharp-edged Contours Light-weight Thermo-expandable Microsphere, Porous Microsphere for Exhaust Gas Filters Base Materials with Lightness and Stiffness Acoustic Interlayer Films Acoustic & Solar Control Interlayer Films Multi-layer Extrusion Solar Control Interlayer Films Meeting New Market Needs Through Prominent Expanding the Automotive Materials Business Related Business Units Sekisui s s Automotive Materials Business-3 Chemical Specialty Division Thermo-expandable Microsphere Porous Microsphere for Exhaust Gas Filters Foam Division Cross-linked Polyolefin Foams Automotive-related Materials Business Industrial Tape Division Low Smell & Ultra-low VOC Tapes Sekisui Techno Molding Co., Ltd Interlayer Film Division Interlayer Film for Laminated Glass High-performance Interlayer Films Large-Sized Bumpers with Sophisticated Design Metal Alternative Light-Weight Plastic Parts Promoting the Business with Both our High Expertise and Strong-cooperative System, like Warp and Weft

7 Sekisui s s Automotive Materials Business-4 Organization System Automobile Manufacturers Primary Suppliers Solution Proposal Marketing Group Obtaining Customer Needs Reinforcing the Present Business Sales Department Business Unit Creating New Businesses Technical Development Group Materials Center AT Materials Development Center IT Materials Development Center Production Center Organizational Structure Supports Chemistry for your Win Sekisui s s Automotive Materials Business-5 Global Operation * Production Bases Include Raw Materials Plants * Sales Bases Include Subsidiaries of Overseas Companies U.K. Production Bases Sales Bases Development & Technical Service Bases Canada USA Mexico Germany Italy China Korea The Netherlands Switzerland Spain France India Taiwan Japan Thailand Hong Kong Brazil Singapore Malaysia Australia Production Bases Sales Bases Year Development & Technical Service Bases PP Foams for Automobiles: No.1 Share in the World No.1 in Japan, No.1 in Asia (ex Japan), No.1 in Europe, No.1 in North & South America Interlayer Film for Automobiles: No.1 Share in the World No.1 in Japan, No.1 in Asia (ex Japan), No.1 in Europe, No.3 in North & South America Promoting Global Business Positioning Close to Users

8 1000 (100 million yen) Automotive Materials Business Targets - AT1000 Plan - Automotive Material Business Sales AT1000 Plan (formulated Jan. 2006) FY2002 FY2003 FY2004 FY2005 FY2006 FT2007 Forecast Prominent Marketing JSAE AUTOMOTIVE ENGINEERING EXPOSITION (first entry) Establishment of AT Material Received Most Outstanding Exhibitor Award Development Center for Four Consecutive Years Establishment of Sales System Establishment of the Planning Dept. for Application Areas for Automotive Related Business Establishment of Marketing Group Global Strategic Investment Capital Participation in Shanghai Holy Plastics Co. Ltd. FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Interlayer Film Plant in Thailand Capital Participation in YoungBo Chemical in Korea Interlayer Film Plant in China Foam Plant in China Raw Material Plant in the Netherlands for Interlayer Film Interlayer Film Plant in the US FY2008 Original Plan FY2009 FY2010 Establishment of Subsidiary in India Tightening Relationships with Users Promoting New Product Development Expanding Production Closer to Demand Locality Promoting M&A Foam Business AT1000 Plan Strategy-1 Reinforcing the Global Network Promoting Further Optimization by Securing Bases (for development, production and sales) in each Demand-area of the World Utilizing Leading Position in Industries (No.1 share) through Early Reinforcement of the Global Network Global 9 Plant System Expanding Sales of Existing Products Foaming Polyolefin Plant Exclusively for Automobiles made in China (Jan. 2006) Production Bases Further Increase in Share Mainly in the Frontiers of Growth Markets (including possible M&A) Cultivating the Existing Market More Deeply Capturing New Markets Generating Demand in New Parts Based on our Technological Capability The World-first Development of Cross-linked Polyolefin Foam (1965) Generating Demand for Parts Utilizing our and Strong Relationships with Users Weight-saving and Sophisticated Appearance have been Realized Putting New Products on the Introducing New Products with Market mental Responsiveness Introduced New Products Responding to Weight-savings and Vibration-deadening Needs Aggressively Expanding Applications for New Automotive Parts Light Weight Vibration Reduction Material Enabling the Development of Each Interior Section PP Laminated Film Special Foam (elastomer foam) Adhesion Vibrating Base This can be Processed into Various Shapes and Therefore can be Applied to Car Interiors Increase Share by Offering -enhancing and mentally Friendly Products

9 AT1000 Plan Strategy-2 Interlayer Film Business Total N & S America Demand: Approx. 70 k.tons Interlayer Film Plant in the US Opened in Oct Film Capacity for 6 Million Cars p.a. Our Share: up Approx. 20% (No.3) Year Growth of Global Market (estimate) Our Share (automotive applications) Composition Ratio of Interlayer Film in HPP k.tons 40% 15% Europe Demand : Approx. 80k.tons k.tons 45% 22% We Established Bases in each Demand-area of the World Ahead of Competitors Production System: 6 Intl. Film Plants & 2 Materials Plants Raw Material Plant in the Netherlands Opened in Jan Our Share: Approx. 40% (No.1) Accelerating the Further Development of Global Operations Expanding Sales of High-performance Films Developing and Introducing New Types of High-performance Films We Applied our Unique Technological Ability to the Business. up Asia Demand Approx. 30 k.tons Our Share: Approx. 50% (No.1) Expansion of Production Bases is Under Consideration for the Frontiers of Growth Markets Interlayer Film Plant Japan Demand: Approx. 20 k.tons Our Share: Approx. 80% (No.1) up Raw Mat. Plant AT1000 Plan Strategy-3 Plastic Molding Business Opening Frontiers of Growth Overseas (Automobile, Motorcycle, System-supplier) Specific Japanese Users (Automobile, Motorcycle, System-supplier) Needs Weight-saving, Design (comfort), Low Cost Plastic Engine Gears Plastic Seat-backs Increasing In-store Share Sophisticated Light Weight Appearance Grills Glove Compartments Sophisticated Appearance Package Trays Light Weight Front Bumpers Accumulation of Achievements and Know-how; Brushing-up Development and Designing Capability Proposals to use Plastics for Parts. Supplying Highperformance Plastic Parts -Responding to Customization -Technological Licensing, Joint Development Expanding Joint Development with Key Customers, Opening up Frontiers of Growth Markets Sekisui Techno Molding Contributing to the ment Realizing Thinner-walled Parts and Weight-savings Proposing Materials Substituting for Metal Parts Injection molding for High-expansion Foams Mold Design Overall Management Ability through Product Design ~ Mold Design ~ Production Opening of Aichi Plant (Apr. 2008) 4 th Domestic Plant

10 Growth Business AT1000 Plan Strategy-4 Growth Products and Products Contributing to the ment and Thermo-expandable Microspheres (Chemical Specialty Division) Reducing the Quantity of Resin by Adding Hollow Particles Weight-saving Contributing to Weight-savings in Plastic Parts (30%) Realizing High-design Properties -Eliminated the Problem of Poor Appearance Caused by Chemical (gas) Foaming Thermo-expandable Microsphere contributing to the weight saving of interior and exterior parts Low-boiling hydrocarbon Heating Hollow Balloon Low Smell, Ultra-low VOC Tapes (Industrial Tape Division) Reduced not only the 13 Substances (organic compounds) Specified by the Ministry of Health, Labor and Welfare, but also Total VOC. Thoroughly Reduced Smells and Improved Interior Air-quality. Improving of Car Interiors by Realizing Low Smell and Ultra-low VOC For Adhesion of Parts in Closed Spaces (e.g. car and house interiors) For Adhesion of Sealing Materials for Air Conditioners Thermoplastic polymer cell For Adhesion of Sealing Materials such as Polyurethane Foam Development, Market Introduction and Sales Expansion of High-value-added Growth Products

11 Sekisui Automotive Products with Global Prominence Tadahiko Yoshioka Head of Planning Group Automotive Materials Development Center High Performance Plastics Company 12 December, 2007 Automotive Products with Global Prominence Business Groups Products Keywords Foam Business PP Foams Light-weight Vibration Reduction Materials Interlayer Film Business Plastic Molding Business Growth Business Normal Interlayer Films Acoustic & Solar Control Interlayer Films High-expansion Foamed Molded Parts Metal Alternative Plastic Parts Thermo-expandable Microspheres Porous Microspheres for DPF Low Smell, Ultra-low VOC Tapes -21-

12 Foam Business: PP Foams Foaming Control Cross-linked Polyolefin Foam (1st in the World: 1965) Global Operation for Development, Production and Sales (Global Share No. 1) Prominence of Sekisui PP foam Light Weight Moldability Achieved both Design-sophistication and Cushioning Properties (Unique to Sekisui) Cushion Elasticity Design Properties Heat Insulation Chemical Resistance Instrument Panel Door Trim インパネ Tight Contact with Plastic Parts without Gaps Foam Business: Light-weight Vibration Reduction Materials Foaming Control Composite Design Adhesion Applied to Roof Panel PP Laminate Film PP Foam Special Elastomer Foam Vibrating Parts (roof panel etc.) Weight Reduced by 50% from Existing Products Good Sound Insulation (vibration reduction) Both Light Weight and Vibration Reduction Achieved Simultaneously Formable into Complex Shapes Sound Insulation Motor Cover Presenting Solutions for Customers, Currently under Evaluation for Adoption Possible to Form into Complex Shapes Sound Insulation for Increasing Motor Noises

13 Interlayer Film Business: Standard Interlayer Film Material Design Adhesion Control Interlayer Film for Laminated Glass Global Standard Prevents Scattering of Glass Blocks Over 99% of UV Rays Impact Energy Absorption Smash & Grab Prevention Glass Interlayer Film Glass Thickness: 0.76mm Laminated Windshield is Mandatory in Global Emerging Markets Sunroof Door Window (partial) Windshield Interlayer Film Business: Acoustic & Solar Control Interlayer Film Nano-dispersion Multi-layer layer Extrusion No.1 share (worldwide) based on World-first and Global Operation Increasing Fuel Efficiency by approx. 3% (equivalent to 100kg of weight-savings) Reducing Skin Irritation from Direct Sunlight Reducing Sound Levels by 5dB 5-layer Structure (world-first) Cross Section of Laminated Glass Sound Insulation & Heat Shielding Function (world-first) Visible Light Nano-dispersed Heat Shielding Particles 4. Sound Insulation Layer 1. Normal Ultraviolet Ray Film Layer 2. Colored Outside Layer 3. Normal Inside Film Layer Reduced Frizzling Heat 5. Normal Film Layer Infra-red Ray Noise Glass Glass Quiet Electromagnetic Wave No Communication Failure

14 Plastic Molding Business: High-Expansion Foamed Molded Parts High-expansion Foam High Precision Injection Molding Mold Design Both High-expansion and Good Surface Appearance Achieved Simultaneously 30% on avg. Weight-savings Interior: door trim, etc. Exterior: Bumper, etc. Plastic Molding Business: Metal Alternative Plastic Parts High Precision Injection Molding Composite Compounding Weight-savings of 20% Compared with Aluminum Die-cast Parts Freedom of Design Parts Integration (reduced number of parts) Seat-back: Nylon Resin + Fiber-glass Plastic Gear

15 Growth Business: Thermo-expand expandableable Microspheres Microsphere Foam Hollow Injection Molding Balloon Weight Reduction for Interior Parts of 30% Good Surface Appearance Realized - Preventing the silver Surface caused by Conventional Gas-foaming Heat Applied Thermo-expandable Microsphere to Automotive Injection Molding Parts (world-first) Trim Molded etc. Interior Parts Cells of Thermoexpandable Microsphere Cross Section Encapsulated Gas -28- Growth Business: Porous Particles for DPF Micro-porous Particle Thermal Decomposition Control Micro-porous Particle DPF DPF:Diesel Particulate Filter Improved Cleaning Capability for Exhaust Gas (effective PM trapping) Weight Reduction for Filter Shorter Processing Time Conventional Filter Pores are Made by Mixing with Ceramics and Firing DPF (cross section) Exhaust Gas Clean Gas Filter Made with Porous Particles Pores (air space) Caused by the Disappearance of Particles Ceramics PM (soot) -29-

16 Adhesion ppm 600 Growth Business: Low Smell, Ultra-low low VOC Tape Coating Control World-first Market Introduction of mental Friendly Tape (LSV tape) Reduced not only the 13 Substances (VOC) Specified by the Ministry of Health, Labour and Welfare but also All VOCs. Thoroughly Reduced Smell and Improved Car Interior Air Quality. Generated VOC Volume (90 /30 minutes heating) 90% Reduction Structure Application Example: For the Adhesion of Polyurethane Foam Releasing Liner Adhesion Material: Acrylic Adhesive Layer Base Material: Nonwoven Fabric Base Air Conditioning Unit 0 Conventional Tape LSV Tape Total VOC Quantity in Conversion to Toluene. Indispensable for Parts Influencing Air Quality -30- ment Reducing CO 2 Improving Fuel Efficiency Emissions Treatment Bio-materials Silence Health Design Consciousness Preventive Pedestrian Protection Market Trend Match for Tech-based Sekisui Products Trends Materials in Need Sekisui Weight-saving, Use of Plastic Steep Rise of Oil Prices High-expansion Foam Molded Parts Light-weight Vibration Tightening of Regulations Reduction Materials Heat Load Reduction Fuel efficiency: New Fuel Efficiency Standards etc. Solar Control Interlayer Films High Performance Emissions: Tier2Bin5 etc. Exhaust Gas Filters Porous Particles for DPFs Movement for Weight-savings in Industry Electronics Self-imposed Regulation of VOC by JAMA ( 07-) NCAP Heat Dispersion, Heat Resistance Impact Absorption New Target Thermo-expandable Microsphere High-expansion Foam w/good Appearance Composite Material Design Nano-dispersion Hollow Microparticles etc. Noise & Vibration New Target Reduction Multi-layer Acoustic Interlayer Films Molding/extrusion Low VOC Compound Low Smell, Ultra-low Adhesive VOC Tapes Foaming Control High Precision Molding Sharp-edged PP Foams etc. New Target Note: Tier2Bin5: US EPA Emissions Regulation New Fuel Cost Standard: Fuel Cost Improvement Target for 2015 from the 2004 Level in Japan. NCAP: New Car Assessment Program (Public Collision test in Japan, Europe) JAMA: Japan Automobile Manufacturers Association Foam Molding Control Composite Material Design etc. -31-

17 Disclaimer: This presentation may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors. -32-