Medium-term Management Initiative (FY 2016 2018) Progress and - - PowerPoint PPT Presentation
Medium-term Management Initiative (FY 2016 2018) Progress and Outlook March 2019 Asahi Kasei Corporation Outline 1. Progress and outlook for Cs for Tomorrow 2018 P3 2. Material segment P13 3. Homes segment P33 4. Health Care
March 2019 Asahi Kasei Corporation
2
3
4
(¥ billion, except where noted)
FY 2015 FY 2016 FY 2017 FY 2018 forecast FY 2018 target FY 2025
Net sales
1,940.9 1,883.0 2,042.2 2,171.0 2,200.0 3,000.0
Operating income
165.2 159.2 198.5 201.0 180.0 280.0
Operating margin
8.5% 8.5% 9.7% 9.3% 8.2% 9.3%
Net income
91.8 115.0 170.2 145.0 110.0
Net income per shareholders’ equity (ROE)
8.6% 10.5% 14.0% 9.0% 10.0%
Net income per shareholders’ equity and interest-bearing debt
7.1% 7.6% 9.7% 7.0% 8.0%
Dividends per share
20 24 34 341
Payout ratio2
30.4% 29.1% 27.9% 32.7%
¥/US$ Exchange rate
120 108 111 111 110
New records in net sales, operating income, and net income
35.0%
(As of April 2016)
Cs for Tomorrow 2018 (CT2018)
(As of April 2016)
1 Dividends will be determined based on FY 2018 consolidated net income results in consideration of total return ratio target of 35%. 2 FY 2018 target figure for payout ratio is total return ratio including share buybacks.
(As of Feb. 2019)
5
FY 2018 target FY 2025
Net sales
977.9 1,087.7 1,182.0 1,250.0 1,650.0
Operating income
88.5 121.9 126.5 100.0 140.0
Operating margin
9.0% 11.2% 10.7% 8.0% + 0.5 pt 8.5%
Net sales
619.0 641.0 655.0 700.0 1,000.0
Operating income
64.1 64.4 65.0 70.0 + 30.0 100.0
Operating margin
10.4% 10.0% 9.9% 10.0% 10.0%
Net sales
270.1 296.3 314.0 370.0 + 7.2%/year 600.0
Operating income
31.9 39.5 42.0 50.0 80.0
Operating margin
11.8% 13.3% 13.4% 13.5% 13.3%
Others
Operating income
(25.3) (27.3) (32.5) (40.0) (40.0)
Total
Operating income
159.2 198.5 201.0 180.0 280.0
FY 20161 FY 2017 FY 2018 forecast
Material Homes Health Care
FY18–25
increase, growth rate
(As of April 2016) (As of April 2016) (As of Feb. 2019)
(¥ billion, except where noted)
1 Beginning with FY 2017, the Energy Division, which was formerly included in Others, is reclassified into the Material segment.
FY 2016 figures are recalculated in accordance with the new classification.
6
500 1,000 1,500 2,000 2,500 50 100 150 200 250
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '18
Operating income (¥ billion)
Dividends per share (¥)
Net sales (¥ billion)
Operating margin (%)
(FY)
Net sales Operating income
FY 2018 target Net sales ¥2,200 billion Operating income ¥180 billion forecast target
13 10 10 11 14 14 17 19 20 24 34 34
(as of Feb. 2019) (as of April 2016)
7.7 2.3 4.1 7.9 6.6 5.5 7.6 7.9 8.5 8.5 9.7 9.3
7
Operating cash flow (3-year total): ¥600–700 billion
Total investment (3-year total): ≈¥700 billion
investment to maintain and expand established businesses
Target for total return ratio
8
Progress on long-term investment (on decision-adopted basis)
Material
Homes
creation
Health Care
FY 2018 plan (including M&A, etc.)
FY 2016 Approx. ¥150 billion FY 2017 Approx. ¥190 billion
Major investments Material
Homes
members
Health Care
Major investments Material
CO2 sensor modules
Homes
Australia
Health Care
removal filters ・Acquisition of Sage Automotive Interiors, a US-based manufacturer of automotive interior material ・Acquisition of Erickson Framing Operations, a US company which
Planning to determine ¥700 billion investment in total, in CT2018 (FY 2016–2018)
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Long-term investments compared to previous mid-term management plan
1Acquisition of ZOLL and Polypore is excluded.
For Tomorrow 2015 Cs for Tomorrow 2018
1
◇Leona nylon 66 filament
start-up: FY 2019
◇LIB separator
start-up: FY 2018–2020
◇Planova virus removal filters
start-up: FY 2019
◇Lamous microfiber suede
start-up: FY 2019
◇S-SBR for fuel-efficient tires
start-up: FY 2018 Value of long-term investments on decision-adopted basis (compared to previous mid-term management plan)
(¥ billion)
200 150 100 200 50 FY 2011–20151 (average)
For Tomorrow 2015
FY 2016–2017 (average)
Cs for Tomorrow 2018
Major capacity expansion
(start-up from FY 2018 onward) Contribution to increased production and profit growth in FY 2019–2020
70% increase
10 Capturing demand growth Provision of new value Actions to accelerate global development
Assigning executive officers for China, North America, and Europe to integrate each region
Asia North America Europe Others
nonwovens for diapers
battery separator
Inc., contributing to the expansion of automotive-related business
separator
membrane for a seawater desalination plant in Kuwait, representing the company’s largest-scale hollow-fiber filtration membrane order
LLC, advancing standardization and systemization in homes
for the treatment of severe sepsis with coagulopathy
Food and Drug Administration for Lucica Glycated Albumin-L, an in vitro diagnostic assay kit for glycated albumin
starting CO2 sensor modules business
Homes Pty Ltd of Australia, advancing standardization and systemization in homes construction
resources
11
For fiscal 2025 Performed
Adapting to business environment change
Maximizing Group capabilities
resources, and technologies
Additional strategic measures
advantage
Accelerating creation and launch of new businesses
Strengthening and developing business foundations
by IoT and AI (digital transformation)
compliance
and businesses strategy
Smooth start of operating holding company configuration Revised forecast to exceed FY 2018 target
Measures for growth and expansion
Proactive investments and measures to automotive- and environment/energy-related businesses
Expansion of overseas business
Expansion of Critical Care business
Reinforced business foundations
compliance
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Creating a portfolio of high-profitability, high value-added businesses
Advancing toward 2025 Focus of “Cs for Tomorrow 2018”
Advancing “compliance,” “communication,” and “challenge” to build the base for the next phase with connections among diverse businesses and diverse human resources
Pursuit of growth and profitability Creation of new businesses Acceleration of globalization
Providing solutions to two important challenges faced by society with diversified businesses
Society of clean environmental energy Society of healthy/comfortable longevity with peace of mind
Communication Compliance Challenge
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Fields of focus Healthcare/hygiene Automotive Environment/energy
■Spunbond nonwoven for diapers ■Bemliese continuous-filament cellulose nonwoven for facial masks ■Saran Wrap cling film New packaging ☆UVC LED for disinfection
■Capacity expansion, etc. ☆Advance of new businesses ○ Business configuration
Society of clean environmental energy Society of healthy/comfortable longevity with peace of mind
■LIB separator ☆CO2 sensor modules Acquisition of Senseair AB ☆DRC process for DPC1 Validation ☆Alkaline water electrolysis system Demonstration project in Europe ■S-SBR for fuel-efficient tires ■Leona nylon 66 filament for airbags ■Lamous microfiber suede for automotive interior ☆Automotive interior material Acquisition of Sage Automotive Interiors, Inc. ○Resin compounds Reinforced business configuration in Europe, the US, and Asia Electronic devices for automotive
1 New process to produce diphenyl carbonate (DPC) via dialkyl
carbonate (DRC) from CO2, alcohol, and phenol.
Material
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AKXY concept car
✓ Strategic relationships with OEMs and Tier-1 suppliers
・Development and utilization of AKXY concept car ・Hold private exhibitions, exhibit at trade shows as the Asahi Kasei Group
✓ Accelerating company-wide measures
・Established Automotive Marketing Dept. ・Measures in Europe as focal area
October 2017)
✓ Capacity expansion for automotive-related business
・Battery separators (LIB, lead-acid battery), S-SBR for fuel-efficient tires, Leona nylon 66 filament for airbags, Lamous microfiber suede for automotive interior, and resin compounds in Europe, the US, and Asia Material
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Acquisition of Sage Automotive Interiors, a US-based manufacturer of automotive interior material
✓ September 2018 completion of acquisition of Sage (transaction price of approximately $700 million1) Overview of Sage
1 The total acquisition price including Sage’s net interest-bearing debt is $1.06 billion. 2 Woven and knitted fabric for vehicle seats (not including natural and synthetic leather)
Business Description Development, manufacture, and sales of various fabrics as automotive interior material (No. 1 global share for vehicle seat fabric2) Locations Headquarters: Greenville, South Carolina, USA Production Bases: USA, Italy, Poland, Romania, Brazil, China Net Sales (million $) FY 2015: 359.3 / FY 2016: 415.6 / FY 2017: 474.9 Employees
Business relationship Sage purchases Lamous from Asahi Kasei and sells it to automakers and Tier-1 suppliers after processing (dyeing, etc.)
Premium fabrics (Sage Echelon brand)
■Dinamica: Luxury microfiber suede with elegance and high color-development ⇒Using Lamous of Asahi Kasei
Innovation in product technology
■Yes Essentials fabrics: High-performance and sustainable fabrics for proofing against stain, water, smells, static, and bacteria
Material
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✓ The automotive industry is in a period of transformation referred to as CASE, and such new trends create significant growth opportunities. ⇒Changing needs for performance and characteristics of materials create opportunities for Asahi Kasei having wide-ranging products and technologies. ✓ For vehicle interiors, new needs focusing on safety, comfort, and design are emerging. ⇒The automotive interior materials market is expected to grow by about 5–6% per annum, due to various changes in automotive interiors.
Background of acquisition
xEV
Electric Autonomous Connected
X X
Shared
Aim of acquisition
Strengthening Asahi Kasei’s position in the growing automotive interior market, and contributing to the expansion of its automotive-related business ⇒Decision to acquire Sage; having strong presence among automakers and Tier-1 suppliers based on its comprehensive proposal capabilities, advanced design capabilities, and processing technology related to automotive interior material
Material
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Expected effects of acquisition
✓ Enhanced access to vehicle manufacturers and Tier-1 suppliers, in order to swiftly and accurately ascertain trends and needs in the automotive industry, by expansion of supply chain from upstream to midstream. ✓ Proposal and provision of comprehensive vehicle interior designs and solutions leveraging Sage’s design and marketing capabilities in combination with various Asahi Kasei products and technologies, such as fibers, plastics, and sensors. ✓ Utilizing Sage’s sales, manufacturing, and marketing bases as management infrastructure and resources for the global expansion of Asahi Kasei’s operations.
（Asahi Kasei） Automaker Materials manufacturer (Asahi Kasei) Automaker
Current Post acquisition
Tier-1 supplier
Aim to propose solutions combining multiple materials/components
Tier-2 supplier (Sage) Tier-1 supplier
Performance polymers Airbags Sensor modules New materials
Material
19 19
Green hydrogen verification project
Engineering plastics
Leona PA66 Tenac POM Xyron mPPE
Generating electricity
1 Energy storage system 2 Idling stop and start
Alkaline water electrolysis system Battery separators CO2 sensors S-SBR
Energy conversion Electricity storage Electric drive vehicles Fuel efficiency Lighter weight Efficient air conditioning Electricity storage Efficient air conditioning
Energy supply
Producing hydrogen from renewable energy ESS1 LIB Lead-acid battery Metal substitution ESS1
ISS2
Tire tread Measuring CO2 concentration
Solar panel components
Measuring CO2 concentration
etc.
Material
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500 1,000
2016 2018 2020
1,000 2,000 3,000 4,000
2016 2018 2020
Capacity expansions for LIB separator to prepare for upcoming EV market growth
Automotive： CAGR approx. 40%/year
Demand increase: CAGR approx. 25%
(FY)
(Million m2)
Dry Wet
Consumer electronics
LIB structure
Separator
Anode
Positive electrode Cathode Anode Negative electrode
Process Location Capacity Start-up schedule Wet Moriyama, Shiga, Japan
First half of FY 2018 Dry North Carolina, the US
Second half of FY 2018 Wet Moriyama, Shiga, Japan
First half of FY 2019 Wet Moriyama, Shiga, Japan
First half of FY 2020
(Million m2)
✓ Swiftly meeting various market needs with both wet-process and dry- process separators ✓ Further expand capacity to meet rising global demand (FY)
Asahi Kasei production capacity for LIB separator Demand forecast for LIB separator (Asahi Kasei estimate)
600 810 1,100
Material
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40 80 120 2010 2011 2012 2013 2014 2015 2016 2017 2018 forecast High value-added businesses Commodity businesses (FY)
FY 2010 Ratio of high value- added businesses
(¥ billion)
Operating income of Material segment
FY 2018 Ratio of high value- added businesses
(as of Feb. 2019)
1 High value-added businesses: fibers, synthetic rubber, engineering plastics, coating materials, ion-exchange
membranes, electronic materials, consumables, separators, electronic devices, etc.
Material
22
1 Total of sales in Chemicals, Fibers, and Electronics in FY 2010. 2 As of April 2016.
135.9
Sales ratio in Chemicals
Consumables
1,087.7 Sales (¥ billion) 966.9 1,004.4 1,087.7 1,650.0 FY 2017 sales (¥ billion) FY 2015
↓ ↓
Material total Electronics Performance polymers 799.3 Petrochemicals High-value added business － 152.5 Battery separators FY 2025 outlook2 FY 2017 FY 20101
↓
↓
Commodity business
↓
Commodity business High-value added business － Fibers
↓
Electronic devices Performance materials Chemicals Fibers
Material
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linings, functional innerwear, and ethnic garments
Bemberg cupro fiber
Roica premium stretch fiber
Leona nylon 66 filament
production plants in Japan, Taiwan, China, Thailand, and Germany
July 2015, which is the world’s only spandex certified under the Global Recycle Standard
addition to tire cord application with superior strength and heat resistance
Material
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Nonwovens
Offering distinctive nonwovens made of different materials and by original production technology for wide range of applications
Eltas
Bemliese continuous-filament cellulose nonwoven Increased demand in facial mask application; capacity expansion in February 2017 Lamous microfiber suede
Lamous Bemliese
Eltas spunbond Increased demand in hygienic application; capacity expansion to 40,000 t/y in Thailand in January 2016
Material
(billion pcs.) 20 40 60 2013 2015 2018 2020 2025 Baby Adult
Forecast for diaper production in ASEAN and India (Asahi Kasei estimate)
Decision to expand capacity; start-up in first half of FY 2019
and selling vehicle seat fabric using Lamous, in September 2018
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Material
Asahi Kasei Capacity (kt/y) Main competitors Main applications Asahi Kasei’s position/strengths Acrylonitrile 960 Ineos Acrylic fiber, ABS; captive use for ABS, adiponitrile 2nd largest producer in the world Styrene 390 Shell Ineos Lyondell Basell EPS, ABS, SB latex, unsaturated polyester, SBR; captive use for PS, ABS, SB latex, SBR After 320 kt/y plant in Mizushima closed in
market and captive use Methyl methacrylate 170 Mitsubishi Rayon MS, MBS, coating materials; captive use for PMMA Proprietary, cost-competitive C4 process Cyclohexanol 180 Shandong Haili BASF Adipic acid, caprolactam; captive use for adipic acid Mainly for captive use Polyethylene 283 (Domestic) Japan Polyethylene Prime Polymer Films, miscellaneous goods, food containers, injection molding Business development taking advantage of unique characteristics based on distinctive catalyst technology Polystyrene 315 (Domestic) Toyo Styrene DIC Food containers, food packaging, toys, miscellaneous goods, construction materials Largest producer in Japan As of April 2016
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Chemicals (2) Strengthening of petrochemical operations in Japan
Material
Strengthening petrochemical operations by establishing the optimum production configuration for stable earnings and enhanced competitiveness to cope with contracting domestic demand and price competition from products made
Business Location Capacity
(thousand tons)
Major applications Closure schedule
Naphtha cracker Mizushima 500 (unified with Mitsubishi Chemical’s facility)
Production of basic petrochemical products such as ethylene and propylene
February 2016 AN Mizushima Kawasaki Korea Thailand 200 100 150 560 200
Acrylic fiber, ABS, acrylamide, adiponitrile
August 2014 Styrene Mizushima 320 390
Polystyrene, ABS, synthetic rubber
February 2016 ABS resin Mizushima 65
Automotive, home electronics,
December 2015 SB latex Mizushima Kawasaki 24 36
Paper coating, adhesives, paint
December 2015 Epoxy resin Mizushima Fuji 37 (undisclosed)
Coatings, adhesives, electronics
May 2015
Closure Dedication to another product
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Advancing global growth strategy; reinforcing automotive-related businesses
parts
compounding
Product Strategy
Main automotive applications Leona polyamide 66 Global development of specialty polyamide with superior heat resistance, durability, rigidity, and appearance Engine compartment parts (cylinder head covers, etc.) Tenac polyacetal Production of low-VOC products in both Mizushima, Japan, and Zhangjiagang, China, and global sales expansion Interior parts, fuel-system parts, electric motor parts Xyron modified polyphenylene ether Global development of superior grades centered on office equipment, photovoltaics, automobiles, and rechargeable battery applications Electrical system parts (relay blocks, electric vehicle battery parts, etc.) Polypropylene compounds Sales expansion leveraging 2nd plant in US and sales subsidiary in Mexico Radiator fans, fan shrouds, etc.
Material
Engineering plastics
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expanding capacity for continuous process, with fewer competitors
Singapore plant – 30 kt/y capacity increase, start-up: January 2019 Growing demand for fuel-efficient tires with more stringent environmental standards
Enhancing all four main performance characteristics of tires through original technologies for polymer design, higher molecular weight, and functionalization
Asahi Kasei’s technologies for continuous-polymerization process
Batch polymerization Continuous polymerization
Handling stability Abrasion resistance Fuel- efficiency Wet grip
Performance characteristics
Material
Synthetic rubber (solution-polymerized SBR)
0.0 0.5 1.0 1.5 2010 2015 2020
(million tons)
Global demand forecast for S-SBR for fuel-efficient tires (Asahi Kasei estimate)
In-house production by tire manufacturers Open market
Functional- ization Polymer design Higher molecular weight (FY) 100 200 300
2010 2013 2015 2018 2020
(FY) (thousand tons) Additional capacity (overseas) under consideration Singapore plant (50 kt/y) Singapore plant (50 kt/y) Singapore plant (30 kt/y) Domestic capacity
Asahi Kasei production capacity for S-SBR for fuel-efficient tires Demand increase: CAGR approx. 10%
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Product Main applications Asahi Kasei’s position Microza UF and MF membranes Water filtration Top-tier world share:
water treatment market Aciplex ion-exchange membranes Membrane-process electrolyzer Chlor-alkali electrolysis Membranes: No. 1 world share Electrolyzers: No. 2 world share Duranate HDI-based polyisocyanate Non-yellowing polyurethane curing (coatings, inks, adhesives, cast molding, etc.) World top-3 share
Acetonitrile Solvent for pharmaceutical manufacture
Ceolus microcrystalline cellulose Additives for pharmaceuticals and foods
Sunfort dry film photoresist Forming copper circuit patterns on printed wiring boards and semiconductor packaging World top-3 share: 30％ APR and AFP photopolymers and platemaking systems Printing plates for packaging such as cardboard, labels, and film
Main products of performance materials Main products of consumables
Saran Wrap cling film Ziploc bags and containers Frosch dishwashing liquid
Material
30
Wet-process Li-ion battery separator
Strengthen customer support, capture demand in emerging markets, develop new products with group technology Solidify world-leading position through unique solution proposal ability having both wet and dry processes, with global manufacturing, marketing, and development configuration, meeting various customer needs
Lead-acid battery separator
Pursue synergy between lead-acid and Li-ion battery separators
Integrate technology and marketing, deliver value to customers
1 Energy storage systems 2 Idling stop and start
Dry-process Li-ion battery separator
strength in consumer electronics
markets
applications
ESS1 applications
automotive applications from stricter environmental regulation
in emerging countries
Material
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Product Main applications Asahi Kasei’s position Main competitors Electronic compass Smartphones, tablets, etc. World’s No. 1 Yamaha, Alps Electric Devices for camera module Camera modules for smartphones Top tier in the world (magnetic sensors) Rohm Semiconductor, Renesas Electronics LSIs for crystal oscillator Smartphones, communication devices World’s No. 1 Panasonic LSIs for high-end audio Smartphones, high-end audio equipment Top tier in the world ESS Technology, Cirrus Logic LSIs for automotive audio/visual/navigation Car audio, navigation system, hands-free system, etc. Top tier in Japan NXP Semiconductors, Texas Instruments Hall elements for motor control Air conditioner, household appliances, computer cooling fans, industrial equipment World’s No. 1 –
Various sensing solutions for the IoT era
servomotors, robots)
motor control
Material
1 April 2018, acquisition of Senseair AB, a Swedish manufacturer of gas sensor modules, to expand business
activities in the market for air, gas, and alcohol sensors, where rapid growth is forecasted.
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33
34
Order-built homes, condominium construction
Hebel Maison apartment buildings Hebel Haus unit homes Atlas condominiums Remodeling Rental management Agency
Services Extending and broadening the value chain
Enriched services
Healthy/comfortable longevity with peace of mind
and components
Construction Materials
base of support for life and living
For Asahi Kasei Homes For the general market
New markets New products Homes
35 Construction Materials business Homes business New business
Expansion of Hebel Village apartments for seniors Full-fledged sales of Hebel Building System launched in FY 2017
Orders received for Hebel Village
Leveraging our know-how for standardization and systemization for home construction in Australia and North America
Machida station, in Tokyo
January 2018 launch of Neoma Zeus with the highest level of insulation performance: Studying development for non-housing applications
Number of buildings
Homes in 2017
Operations in 2018
Homes
36
Homes
Hebel Haus and Hebel Maison high-end urban homes
sale service (60-year inspection system)
Innovative proposals for urban lifestyle
into medium-rise homes (5+ story)
Development of urban markets from Kanto westward and focus on order-built homes
in Japan (Tokyo area, Nagoya area, Osaka area)
parcels; specializing in order-built homes
75% 24% 2%
Hebel Haus unit homes Hebel Maison apartment buildings
Breakdown of
homes sales (FY 2017) Unit homes Apartment buildings Others
37
Atlas condominium buildings
condominiums based on
Rental management
in buildings subject to 30-year all-unit leaseback system
Targeting the 260,000 Hebel Haus and Hebel Maison buildings sold to date
maintenance such as waterproofing and exterior painting Real estate Remodeling
Homes
Sales Operating income (¥ billion)
Performance of real estate
Sales Operating income (¥ billion)
Performance of remodeling
85.8 92.0 114.1 109.4 124.1 5.8 6.9 8.4 10.0 11.1 5 10 50 100 2013 2014 2015 2016 2017
Sales Operating income
52.6 53.6 55.9 56.1 55.2 6.5 6.3 6.5 5.7 5.8 5 10 30 60 2013 2014 2015 2016 2017
Sales Operating income
(FY) (FY)
38
Homes
1 As the rental management operation of Asahi Kasei Homes was transferred to Asahi Kasei Reality & Residence, the corresponding
sales previously included in order-built homes, etc., are combined with rental housing under real estate beginning with H2 2015.
2 As of February 2019.
(¥ billion, % indicates year-on-year comparison)
Pre-built homes Rental housing
Other Total
FY14 H1 217.6
(-13.6%)
187.9
(+3.9%)
9.8 29.3 1.4 40.6 1.1 256.0
(+7.4%)
516.3 H2 208.0
(+22.8%)
216.2
(+1.5%)
18.0 31.8 1.6 51.4 0.9 295.8
(-0.1%)
514.5 annual 425.7
(+1.0%)
404.2
(+2.6%)
27.8 61.1 3.1 92.0 2.0 551.8
(+3.3%)
FY15 H1 217.3
(-0.2%)
183.8
(-2.2%)
10.4 33.5 1.7 45.6 0.9 258.0
(+0.8%)
554.6 H2 183.1
(-12.0%)
227.7
(+5.3%)
27.7 39.0 1.8 68.4 0.7 325.0
(+9.9%)
513.1 annual 400.4
(-5.9%)
411.5
(+1.8%)
38.1 72.5 3.5 114.1 1.6 583.0
(+5.7%)
FY16 H1 206.6
(-4.9%)
183.5
(-0.1%)
11.8 41.2 1.8 54.8 (0.5) 264.8
(+2.6%)
538.8 H2 194.3
(+6.1%)
220.8
(-3.1%)
9.5 43.5 1.6 54.6 0.8 305.3
(-6.1%)
515.8 annual 400.9
(+0.1%)
404.3
(-1.8%)
21.3 84.7 3.4 109.4 0.4 570.2
(-2.2%)
FY17 H1 193.1
(-6.5%)
182.7
(-0.4%)
12.0 45.3 1.6 59.0 1.1 269.6
(+1.8%)
528.9 Q3 104.1
(+16.4%)
86.0
(-1.4%)
9.2 23.2 1.3 33.7 0.6 134.7
(+7.4%)
548.5 H2 212.5
(+9.4%)
224.1
(+1.5%)
14.7 47.8 2.5 65.1 1.1 318.7
(+4.4%)
520.9 annual 405.6
(+1.2%)
406.8
(+0.6%)
26.8 93.2 4.2 124.1 2.2 588.3
(+3.2%)
FY18 H1 210.1
(+8.8%)
175.5
(-4.0%)
16.8 49.7 1.6 68.1 1.0 271.8
(+0.8%)
557.8 Q3 101.9
(-2.2%)
86.7
(+0.7%)
3.3 25.4 0.8 29.5 0.9 132.8
(-1.5%)
575.0 H2 forecast2 227.9
(+7.3%)
226.1
(+0.9%)
14.2 51.8 3.4 69.4 0.9 328.2
(+3.0%)
563.8 annual forecast 438.0
(+8.0%)
401.5
(-1.3%)
31.0 101.5 5.0 137.5 2.0 600.0
(+2.0%)
15.7 31.8 59.0
Order backlog Sales of real estate1
27.0 27.8 14.4 29.1 56.1
Other sales Value of new orders during the term Sales of remodeling
26.3 26.8
Consolidated Sales of order-built homes, etc.1
27.2 55.9 28.1 27.3 53.6 28.4 55.2
39
Homes
Hebel autoclaved aerated concrete (AAC)
flame-resistance and thermal insulation
Neoma Foam phenolic foam insulation panels and Neoma Jupii floor insulation panels for wood-frame houses
Neoma Zeus launched in January 2018 with the highest level of performance among insulation materials
used during production
without spreading flame
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41
42
Specific actions in Health Care segment (1)
Progress in strengthening domestic profitability and reinforcing the global business platform → Growing to be 3rd major pillar of the Asahi Kasei Group after Material and Homes
Orthopedics
Injection for rheumatoid arthritis
Critical Care
thrombomodulin
Blood purification
Bioprocess
Strengthening domestic earnings
Business fields and targets
Providing value globally Capturing global demand growth Maximizing earnings in line with changing needs
Healthy/comfortable longevity with peace of mind
Health Care
43
Orthopedics Critical Care
− Launch of Reclast for osteoporosis − Launch of Kevzara Subcutaneous Injection for rheumatoid arthritis − License agreement for PREOB bone cell therapy product − License agreement regarding allogenic iPS cell-derived cartilage
Teribone osteoporosis drug
severe sepsis with coagulopathy
penetration of LifeVest wearable defibrillator
(IVTM) system in the area of acute myocardial infarction
Bioprocess
Blood purification
Health Care
44
Health Care
Mechanism/ substance class Sales (¥ billion) Generic name Indication Formulation FY14 FY15 FY16 FY17 Teribone Teriparatide acetate Synthetic human parathyroid hormone (PTH) Osteoporosis with high risk of fracture Injection 25.4 26.7 23.9 26.8 Recomodulin Recombinant thrombomodulin alfa Anticoagulant Disseminated intravascular coagulation Injection 11.7 12.3 12.6 11.8
Flivas Naftopidil Dysuria treatment Benign prostatic hyperplasia Tablet
13.2 9.3 5.9 4.6 Bredinin Mizoribine Immunosuppressant Rheumatoid arthritis, kidney transplantation, nephrotic syndrome, lupus nephritis Tablet 5.6 5.1 4.2 3.6 Elcitonin Elcatonin Eel calcitonin derivative Osteoporosis pain Injection 6.1 5.1 4.4 3.4
Reclast Zoledronic acid Osteoporosis drug Osteoporosis Injection
– – 0.4 1.1
45
Health Care
Development stage Code name, form, generic name Classifications Indication Region Origin Remarks
Pending approval MN-10-T, autoinjection, teriparatide acetate Osteoporosis drug Osteoporosis with high risk of fracture Japan In-house New formulation; new dose Phase III ART-123, injection, recombinant thrombomodulin alfa Anticoagulant Acute exacerbation of idiopathic pulmonary fibrosis (AE-IPF) Japan In-house Additional indication AK1820, injection/ capsule, isavuconazole Antifungal agent Invasive fungal infections Japan Licensed Phase II ART-123, injection, recombinant thrombomodulin alfa Anticoagulant Chemotherapy- induced peripheral neuropathy (CIPN) Japan In-house Additional indication Pending approval (overseas) Flivas, tablet, naftopidil Dysuria treatment Benign prostatic hyperplasia China In-house Phase III (overseas) ART-123, injection, recombinant thrombomodulin alfa Anticoagulant Severe sepsis with coagulopathy United States, Europe, etc. In-house HE-69, tablet, mizoribine Immunosuppressant Lupus nephritis, nephrotic syndrome China In-house Additional indication
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Dialysis-related products
—approx. 35% share1 in dialyzers
countries and different regions
Planova virus removal filters
productivity in manufacturing processes for biopharmaceuticals and plasma derivatives2
biopharmaceuticals and plasma derivatives ≥10% per year
in addition to main markets of Europe and US
capacity of cellulose hollow-fiber for Planova virus removal filters; start-up in first half of FY 2019
Health Care
1 Asahi Kasei estimate. 2 Mainly monoclonal antibodies and immunoglobulins.
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$0 $500 $1,000 $1,500 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 forecast
Continuous growth and proactive expansion
（$ million）
FY 2008–2017 CAGR 15%
(FY)
Acquisition by Asahi Kasei
✓ Increasing market penetration of LifeVest wearable defibrillator ✓ Expanding and maintaining market share of resuscitation business, such as defibrillators for professional use and AEDs ✓ Expanding intravascular temperature management (IVTM) system into area of acute myocardial infarction
Sales trend of ZOLL
(As of Nov. 2018)
Health Care
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Product portfolio of ZOLL
AED
automated external defibrillators
LifeVest
wearable defibrillator
Defibrillators for hospitals and EMS RescueNet
data management suite for fire and emergency medical services
AutoPulse
non-invasive cardiac support pump
Thermogard
temperature management systems
Unique, innovative medical device Only player in intravascular cooling
in the US
in the world Business of Impact Instrumentation, Inc. (US) InnerCool temperature management business of Royal Philips (Netherlands) Kyma Medical Technologies, Ltd. (Israel) Advanced Circulatory Systems, Inc. (US)
Health Care Additions to the acute critical care product portfolio
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1 Implantable cardioverter defibrillator
during high-risk periods such as while waiting for an ICD1 implant (average usage duration 3 months; rented to patients)
care
by almost 300,000 patients worldwide
countries worldwide
Health Care
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Clean environmental energy Healthy/comfortable longevity with peace of mind
etc. Start of Europe R&D Center
Renewal of “Group Masters” program from the view of new business creation → fostering and strengthening human resources, and reinforcement of technology to strengthen business
Alkaline water electrolysis system UVC LED for disinfection DRC process for DPC (using CO2 as feedstock) CO2 sensor Stent graft for abdominal aortic aneurysm Cellulose nanofiber
Open innovation CVC New businesses
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Small size High sensitivity Low power consumption Long life Fast response
Human health Productivity Efficient ventilation
CO2 refrigerant
CO2 gas sensor Application for invisible optics sensing technology
Potential use for different gases and various purposes
Alcohol detection Outside air Agriculture Mass transit In homes In vehicles
?
Well-sealed buildings （increased CO2 concentration）
Clean environmental energy Healthy/comfortable longevity with peace of mind Compound semiconductors (Asahi Kasei) ＋ CO2 sensor modules (Senseair AB)
Global warming
New businesses
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Addressing challenges in a growth market by combining electrolysis, catalyst, and membrane technology Green hydrogen
Renewable energy
Large-scale adoption but unstable power generation
Large amount of CO2 emitted from thermal power stations
Green methane Green methanol
Reduced carbon footprint H2
Gas Fuel-cell vehicles Mixed with gasoline Green fuel
Record of operation over 10,000 hours
Storing surplus power as hydrogen
・World’s highest energy efficiency with demonstration plant anticipating 10 MW capacity ・Accelerating commercialization with demonstration plant in Europe, the market with the greatest potential
New businesses
・Selected for the Fukushima Hydrogen Research Field, the world’s largest-scale system of 10 MW
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Connecting fiber, resin, and processing technology
✓ High degree of design freedom: Able to create parts that have complex shapes ✓ Outstanding strength-to-weight ratio: Improved strength and rigidity compared with
conventional GF reinforced PA66 resin
Continuous glass fiber (GF) Polyamide (PA) 66 fiber Comingled yarn Base material for molding Weaving Comingling Hybrid molding process (compression molding + injection molding)
Textile composite
2) Development of cellulose nanofiber (CNF) composite
PA66 resin
Viscose rayon and Bemberg among first businesses
(Fibers & Textiles business)
Knowledge on synthetic resin
(Plastics business)
Polymer composition/ Processing technology
New material CNF Knowledge on cellulose 1) Material to replace metal for weight reduction in automotive structural parts
New businesses
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Business expansion based on core technology in compound semiconductors
Hall elements (world-leading share)→ IR sensor, CO2 sensor, etc.→ UVC LED using aluminum nitride (AlN) Klaran
Mass production of UVC LEDs using the world’s only 2-inch single-crystal AlN substrate
DNA absorption spectrum
UVC range
AlN emission wavelength Optimum wavelength for disinfection
High-quality Single-crystal AlN
・High sterilization efficiency ・Small size, low power consumption ・Long service life ・Safety (mercury-free1)
Sapphire substrate (other company)
1 With increasing global awareness of environmental risks associated with the use of mercury, as exemplified by
the Minamata Convention on Mercury which came into force in August 2017, there has been a heightening need for a UV light source to replace mercury lamps that are currently used to disinfect drinking water, etc.
Absorption coefficient Ultraviolet wavelength (nm)
UVC LED applications
Food Health care Water Air Consumer use Life science & medical devices Detection of biological weapons Sterilization
Medical applications Food sterilization application Analytical applications Water sterilization applications Air sterilization applications
Water quality testing Production of pure laboratory water Sterilization for drinking water Prevention of biofilm Detection of air pollution Prevention
Indoor air quality Industrial use
Klaran-AKR
a small UVC LED running water sterilizer
New businesses
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Providing remote diagnostic service for rotating equipment on ships leveraging
Local LAN Sensor nodes Network manager Diagnosis server Local management
Remote diagnostic service for rotating equipment on ships
Portable diagnostic device
Online diagnostic system
Diagnosis of
Example (5) IoT for plant diagnosis—applied to solutions for shipping industry
Sensors Internet Satellite communication Dedicated server Detailed diagnosis by Asahi Kasei Measured data, request for diagnosis
Engine room
Display of results and recommended measures
Reply with results Sensors
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New businesses
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“Sincerity,” “Challenge,” “Creativity” Providing new value to society by enabling “living in health and comfort” and “harmony with the natural environment” Contributing to life and living for people around the world
Working on ESG issues (Environmental, Social, Governance) based on our Mission, Vision, and Values
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Perspective on achieving mission and vision (materiality)
Extremely important
Important
Extremely important
♣Wastewater ♣Biodiversity ♣The global environment ♣Industrial waste ♣Greenhouse gas ♥Health and longevity ♥Comfortable life ◇Communication with stakeholders ◇Human resources ◇Supply chain management
♣ Harmony with the environment ♥ Living in health and comfort ◇ Basic activity
◇Diversity ◇Social contribution ◇Risk management
Objectives of business
Importance for stakeholders Importance for the Asahi Kasei Group
Contribution to ◇Human rights ◇Governance ◇Compliance/sincerity ◇Safety/quality Highest priority for mapping below
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FY 2018 sales and operating income forecast1 by business category2
Sales: 2,171.0
(¥ billion) Material
(Fibers, Chemicals, Electronics)
55% Homes
(Homes, Construction Materials)
30% Health Care
(Health Care, Critical Care)
15%
Share of sales by segment3 Share of operating income by segment3
Homes 28% Health Care 18% Material 54%
1 As of February 2019. 2 Figures for operating income by business category include intrasegment transactions which are eliminated from the segment totals. 3 Pie charts exclude “Others” category and “corporate expenses and eliminations.”
Others 600.0 155.0 137.0 20.0 55.0 174.0 853.0 14.5 4.0 23.5 61.0 103.0 9.0 2.0 Chemicals Homes Health Care Fibers Construction Materials Electronics Critical Care 177.0 18.5
Operating income: 201.0
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History of business portfolio transformation, change in sales composition
1950 1965 1980 1995 2010
Sufficiency of daily necessities, improvement in quality of homes, development of public infrastructure Increased comfort and convenience Heightened environmental consciousness, evolution of ICT Business portfolio restructuring Expansion of global businesses Expansion into synthetic fiber businesses Further expansion of businesses, responding to changes in society Expansion of petrochemicals; construction of petrochemical complex Start of housing business Start of electronics businesses Start of health care business Expansion of housing business Start of critical care business Expansion of separator business Bemberg cupro fiber Viscose rayon fiber Nylon fiber Acrylic fiber Chemicals Homes &
Fibers Fibers Health Care Health Care Chemicals Electronics Homes & Const. Mat.
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1960 1970 1980 1990 2000 2010
売上高 営業利益
2,000 1,500 200 150 100 50
Net sales (¥ billion) Operating income (¥ billion)
Early diversification Advanced diversification
Selection & focus Oil shock Collapse of economic bubble Global financial crisis New challenges (FY)
Styrene Viscose rayon Saran Wrap Acrylonitrile AAC (const. materials) Artificial kidneys Hebel Haus Pharmaceuticals Acrylic fiber Polyester Foods ZOLL Polypore Hall elements LSIs Hipore Petrochemicals
Start/acquisition Withdrawal/downsizing
Toyo Jozo Synthetic rubber
1,000 500
Planova Electronic compass Phenolic foam insulation Condominiums
Net sales Operating income
Sage
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Compliance Heightening business activities Human Resources
The “three actuals” Digital transformation Corresponding to businesses
・New Code of Conduct ・Inspection for risks ・Ensuring compliance ・Dedicated committee chaired by the President ・Material informatics ・Applying IoT ・Analyzing technologies and businesses Production innovation New business creation ・Revising system of management by objectives ・New system for highly specialized human resources ・Fostering next generation
・Measures for work style reform
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Digital Transformation
Material Informatics
(MI)
Robotic Process Automation
(RPA)
Internet of Things
(IoT)
Speed Labor saving Innovation Strategy
IP Landscape
(IPL)
Improving development speed Improving efficiency by automation Formulating strategies based on IP Improving productivity Preventive maintenance Changing business models Corporate IT Management, IoT Promotion Dept., Material Informatics Dept., Corporate IP, Planning & Coordination
Tasks requiring experience Repetitious manual tasks Tasks requiring experience and instinct Corrective maintenance Individual patent search
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Board of Directors (9 Directors, including 3 independent Outside Directors)
Risk Management & Compliance Committee President Responsible Care Committee Internal Audit Department Group staff functions Core Operating Companies, Strategic Business Units
Board of Corporate Auditors (5 Corporate Auditors, including 3 independent Outside Corporate Auditors)
Independent Auditors
Nomination Advisory Committee Remuneration Advisory Committee
Compliance Hotline Election Cooperation Audit Oversight Audit Election
Actions for enhanced supervisory functions
Outside Directors and Outside Corporate Auditors
✓ Tours of manufacturing and R&D sites ✓ Visiting inside/outside events ✓ Systemized explanation of each business
investors
system
meetings
Corporate Governance to enhance corporate value
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The commitment of the Asahi Kasei Group: To do all that we can in every era to help the people of the world make the most of life and attain fulfillment in living. Since our founding, we have always been deeply committed to contributing to the development of society, boldly anticipating the emergence of new needs. This is what we mean by “Creating for Tomorrow.”