Post on 29-May-2020
ⓒ2018 Kaneka Group All rights reserved.
Medium-Term major strategyGrowth strategy / R&B strategy / Global strategy / M&A strategy
8
ⓒ2018 Kaneka Group All rights reserved.
238.9 255.9 267.0 274.5
149.4 156.7
170.0 218.5
45.9 47.4
52.0
80.0 160.9
159.0 160.0
176.0
0.0
100 .0
200 .0
300 .0
400 .0
500 .0
600 .0
700 .0
800 .0
売上高 売上高 売上高 売上高
27.1 26.0 26.5 28.0
13.7 15.1 19.0
28.0 9.8 10.6
11.0
17.0
6.5 5.9
6.5
10.0
0.0
10. 0
20. 0
30. 0
40. 0
50. 0
60. 0
70. 0
80. 0
90. 0
営業利益 営業利益 営業利益 営業利益
Growth strategy(Performance Targets by Solutions Unit)
9※ Increase in sales and income from M & A is not included in this numerical plan.
2017(result) 2018(result) 2019( forecast ) 2021(plan)
Growth-driving business
• Foods
• Supplement
• Agriculture
• Health Care
• Electronics
• Residential
• Performance
fibers
• Performance
polymers
• Specialty
polymers
(JPY Billion)
596.1621.0
650.0
750.0
36.9 36.040.0
60.0
Material Quality of Life
Health Care Nutrition
●The creation of new social value and transformation of business models based on technological innovation will present major business opportunities.
●The global economy is expected to decelerate due to trade friction between the U.S. and China and geopolitical risk. Against this backdrop, Kaneka has drawn up its new Medium-term Management Plan.
Net Sales
Net Sales
Net Sales
Net Sales
Operatingincome
Operatingincome
Operatingincome
Operatingincome
ⓒ2018 Kaneka Group All rights reserved.
Growth strategy(Transformation of Business Portfolio)
255.9(41%)
156.7(25%)
47.4(8%)
159.0(26%)
274.5(37%)
218.5(29%)
80.0
(11%)
176.0(23%)
Net Sales
¥621.0 billionFY2018
Net Sales
¥750.0 billionFY2021
Material
Quality of Life
Health Care
Nutrition
Growth-driving businesses
• Foods
• Supplement
• Agriculture
• Health Care
• Electronics
• Residential
• Performance
fibers
• Performance
polymers
• Specialty
polymers
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● Aggressively expand business of all four Solutions Units (SU)● High-functionality products to drive growth in each SU⇒ Aim for major growth in sales of E & I, Pharma, Medical, and Supplement
● Focus on expanding Health Care and Quality of Life
ⓒ2018 Kaneka Group All rights reserved.
Growth strategy(Create added value)
Create added value
Source-in/
Source-out
M&A
Global
systemOpen
innovation
Leading-edge businessesE & I Technology, Pharma, Medical Devices, Supplemental Nutrition, Agris, PV & Energy management
Multiple business
FY 2018 FY 2021
NetSales
103.0 225.0
Ratio 17% 30%
Foundation businessesVinyls and Chlor-Alkali, Performance Polymers, Foam & Residential Techs, Performance Fibers, Foods
Strengthen Only One, Global No.1
FY 2018 FY 2021
NetSales
516.8 490.0
Ratio 83% 65%
New large-scale businesses
Organic EL Lighting, Biopolymers,
Opto-Electrochemicals,
Regenerative medicine and cell therapy, etc
Driving-force ofbusiness transformation
FY 2018 FY 2021
NetSales
1.2 35.0
Ratio 0% 5%
Diverse businesses, diverse technologies, “only-one” products, possession of world-leading technologies and products (Strengths)
11
(JPY Billion)
ⓒ2018 Kaneka Group All rights reserved.
Growth strategy(Transformation of Business Portfolio)
17%
83%
26%
74%
35%
65%
50%50%
Net Sales Operating income
FY2018
FY2021
FY2018
FY2021
Leading Edge+ New large-scale
Foundation(Core)
Leading Edge+ New large-scale
Foundation(Core)
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● Leading-edge businesses’ net sales composition ratio to expand from 17→30%operating income composition ratio from 26→50%
● Leading-edge businesses + New large-scale businesses to make up 35% of total net sales⇒ Driving-force of growth
Leading-edge businesses… E&I, PV, Medical, Pharma, SupplementFoundation businesses (Cash Cow)… V&C, PP, F&R, PF, F&ANew large-scale businesses… Biodegradable polymers, Organic EL Lighting, Opto-Electrochemicals
ⓒ2018 Kaneka Group All rights reserved.
R&B strategy
Transition to an R&B structure in order to strengthen capabilities through a shift from R&D to commercialization
Kaneka’s R&D activities will pursue value from the perspectives of markets and customers
by proactively harnessing leading-edge technologies.
R&D will be redefined as R&B (Research & Business). The purpose of research will be to conduct activities
to solve social issues at the earliest opportunity possible.
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As a “Trial & Error experiment driven company,” Kaneka will enable researchers with curiosity and open-minded thinking to build an innovative research culture (platform).
・Global research network
・Social implementation of Solution Open Business Innovation
Three to identify promising
mpactful
nnovative
mplementable
II
II
〈leading-edge technology〉
〈R&D to R&B〉 〈Clustering technology〉
ⓒ2018 Kaneka Group All rights reserved.
R&B strategy (Investment and Return)
28.5 28.0 29.0
32.0
37.0
5.2%4.7% 4.7% 4.9% 4.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0
10.0
20.0
30.0
40.0
2016
(result)
2017
(result)
2018
(result)
2019
(forecast)
2021
(plan)
123.3
138.6
155.0
200.0
270.0
23%23%
25%
31%
36%
10%
15%
20%
25%
30%
35%
40%
80.0
140.0
200.0
260.0
320.0
2016
(result)
2017
(result)
2018
(result)
2019
(forecast)
2021
(plan)
R&BExpenses New Product Sales(JPY Billion)
14
●Aggressively incorporate advanced technologies while strengthening allocation of resources in the life science and electronics fields in pursuit of themes with speed and scale.
●Realize high growth in new product sales.
ⓒ2018 Kaneka Group All rights reserved.
Three regional headquarters
⇒De-centralizeour corporate functions
Global strategy
●Speedily advance regional growth strategies from a “Glocal” (global and local) perspective
●Create new businesses centered on the life sciences and electronics fields and promote open innovation through M&A and other means
●A Global Big Niche Company that achieves borderless business expansion
Americas
• Create and expand new businesses in the Health Care field, Nutrition field(Lactic-acid bacteria), and the aerospace field
• Aggressively conduct M&As and open innovations• Strategically utilize the Kaneka US Innovation
Center• Further strengthen production and sales
foundations in existing businesses
Europe• Expand production capacity in growth fields and
conduct M&As (Health Care, Material, QoL)• Actively expand solutions business into new
businesses and fields
Asia
• Maximize returns on large-scale capital expenditure
• Aggressively expand sales in China, ASEAN, and India markets
• Expand business in the Health care and E&I fields
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115.7 135.9 170.8
48.8 60.8
87.3 59.3
59.3
69.8
26.0 24.5
28.0
63.3%
66.2%
75.3%
40. 0%
45. 0%
50. 0%
55. 0%
60. 0%
65. 0%
70. 0%
75. 0%
80. 0%
0.0
100 .0
200 .0
300 .0
400 .0
500 .0
600 .0
700 .0
2018
(result)
2019
(forecast)
2021
(plan)
ASIA
Americas
Europe
Other areas
overseas sales/ratio(except for domestic business such as Foods)
(JPY Billion)
Overseas sales/ratio
ⓒ2018 Kaneka Group All rights reserved.
Investment plan
2016-2018 (result) 2019-2021 (plan)
Capital expenditure 123 200
[ M a j o r p l a n n e d p r o j e c t s ]
Europe
Health Care
Expand biopharmaceuticals capacity
Expand bead-method polyolefin foam capacity
Asia
Material
Expand modified silicone polymers capacity
Quality of Life
Expand PI and GS capacity
Build additional optical film facilities
Molded bead-method polyolefin foam product factory
Expand performance fibers capacity
Health Care
Build additional blood purification system facilities
Expand medical device capacity
Expand API capacity (Japan)
Nutrition
Expand margarine-filling capacity (Indonesia)
Construct new dairy product plant
Americas
Material
Aerospace field/Composite production facility
New epoxy masterbatch facility
Nutrition
Healthy foods field/Supplement production facility
To be decided
Material
Mass-production facility for biopolymers
Others
Digital transformation investment
Plan aggressive forward-moving investments such as acquisition of new business commercialization facilities, in addition to bolstering capacity.
(JPY billion)
16
ⓒ2018 Kaneka Group All rights reserved.
Portfolio of investment plan (Capital investment)
( Existing ) ( Familiar ) ( New )
(New
)
(Familiar
)
(Existing
)
Technology
Material
Quality of Life
Healthcare
Nutrition
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~¥1 billion
Over ¥5 billion
¥1~ 2 billion
¥2 ~5 billion
• Emphasize peripheral technologies and peripheral markets in Material and Quality of Life.• As an additional priority, allocate resources to expand the production base and strengthen the
competitiveness of existing businesses.
Market
ⓒ2018 Kaneka Group All rights reserved.
M&A strategy(Open innovation)
FY2018execution project
New Medium-Term
Management Plan
FFR Wire Investing a company focusing on lactic and bacterial(introduction of technology)
• Agressively conduct M&As aiming to acquire advanced technologies, primarily overseas
• Based on the West Coast of U.S.
• Focusing on Health Care SU, Nutrition SU, Performance Polymers SV
We have M&A candidates and narrow down those candidates. Because we are in stage of consultation with partners target companies, We have not factored in any increases in sales or earnings from M&As into the new Medium-Term Management Plan.
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ⓒ2018 Kaneka Group All rights reserved.
Portfolio of investment plan(M&A)
( Existing ) ( Familiar ) ( New )
(New
)
(Familiar
)
(Existing
)
Technology
Material
Quality of Life
Healthcare
Nutrition
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¥3 billion
¥5 billion
¥10 billion
¥15 billion
• Intensively implement M&As in peripheral technologies and markets in peripheral to new areas in Health Care and Nutrition
• Consider a major M&A deal in Medical Devices
Market