IR UPDATE Nomura Investment Forum 2012 December 4, 2012

Size: px

Start display at page:

Download "IR UPDATE Nomura Investment Forum 2012 December 4, 2012"

Silvia Norton
6 years ago
Views:

1 IR UPDATE Nomura Investment Forum 2012 December 4, 2012 Nobu Koshiba, President JSR Corporation (4185 JP)

2 1. Results for First Half of FY2013 and Projections for Full Year 2. Progress of JSR 20i3 3. Counter Measures 4. To Our Investors 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.

3 1. Results for First Half of FY2013 and Projections for Full Year

3 OP income for FY2013 is expected * Published in

Projections for Full Year to remain flat from

OP in the first six months of FY 2013 was almost

Forecast of OP income for the second six months

4 3 OP income for FY2013 is expected * Published in Apr 2011 Results for First Half of FY2013 and Projections for Full Year to remain flat from FY OP in the first six months of FY 2013 was almost in line with the initial plan. 2.Forecast of OP income for the second six months of FY 2013 was revised downward, based on the latest business environment. 3.Sales of S-SBR, immersion ArF and precision process products are expected to grow in the second six months of FY (Unit:Billion Yen)

5 2. Progress of JSR 20i3

6 Progress of JSR 20i3 * Published in Apr 2011 Profits of Fine chemicals and Strategic businesses fell short of the target in JSR20i3. Progress of JSR 20i3 +Petrochemical products: Earnings exceed target in JSR 20i3. +Fine chemicals & Strategic businesses: Earnings fell short of the target in JSR20i3. Measures for expanding top lines made steady progress. (S-SBR, optical film for mobile devices) (Unit:Billion Yen) Sales Petrochemical products FY2011 IT industry continues to stagnate in FY2013 FY2012 FY2013 (projection) Impacts on JSR s business Growing demand for fuelefficient tires. Increase of volatility of raw materials in the petrochemical products. Accelerated commoditization in digital technologies. Fiscal crisis in Europe. JSR20i3 FY2014 (Target) FY2016 (Target) Fine chemicals & Strategic businesses Total OP Petrochemical products Fine chemicals & Strategic businesses Total

(Source)LMC,JSR,Michelin,Citi The growth of our user industries (FY2013) Automobile production increased as expected, while tire production fell below the forecast.

7 Petrochemical Products Income exceeded the target through improving profitability and expanding the Group A businesses. (SSBR, IIR) Growth of Elastomer products outperformed those of our user industries. (Source)LMC,JSR,Michelin,Citi The growth of our user industries (FY2013) Automobile production increased as expected, while tire production fell below the forecast. Original Forecast The latest Forecast Automobile Production (worldewide) +5~6% Approx.+5% Tire Production (worldewide) +6~7% -1~+1% (Source)LMC,CMAI,Global Insight,Michelin,Citi,JSR Shipments of S-SBR in FY 2013 are estimated to grow more than 50% over FY %(YoY) Measures to drive the growth of business (i) Developing Category A products globally through prompt expansion of production capacity. (ii) Maintaining stable growth of earnings in Category C business. Improving cost efficiency and throughput by E-100Plus. (iii) Promoting diversification of BD sources 6

Fine Chemicals Market grew less than expected and our Fine Chemicals expanded at same

Although sales of some products, such as We keep high market share in the field of

growth of semiconductor related some share in the commodity segment.

The growth of our user industries (FY2013) The growth rate slowed recently and fell

(Source)Gartner Sep2012, DisplaySearch2012, JSR Measures to drive the growth of business

8 Fine Chemicals Market grew less than expected and our Fine Chemicals expanded at same rate as market. Although sales of some products, such as We keep high market share in the field of multilayer materials, grew steadily, alignment films, however we have lost the top line growth of semiconductor related some share in the commodity segment. business barely exceeded that of the market. The growth of our user industries (FY2013) The growth rate slowed recently and fell short of the initial forecast. (Source)Gartner Sep2012, DisplaySearch2012, JSR Measures to drive the growth of business (i) Strengthening the position of main stream products in the market (ex. ArF photoresist, alignment films) (ii) Expanding product portfolio (ex. CMP, multilayer materials, OLED) (iii) Coping with globalization centering on Asia (ex. R&D bases in South Korea/Taiwan, Respond to the Chinese market) 7

Top line came close to the initial growth track.

9 Strategic Businesses Sales of ARTON retardation films expanded. Sales of medical materials and environment & energy materials also steadily increased. Top line came close to the initial growth track. In life science field, we continued the spin-off of JSR Life Sciences and strategic investments. We achieved drastic improvement in the performance of lithium ion capacitors (LIC) Target of strategic businesses 8

Toward the Latter Half of JSR 20i3 Our issues are clear.

Petrochemical Products Fine Chemicals Continuing to invest in Category A products

cutting-edge products where we the top line and increasing operating can differentiate

competitors (semiconductors and Maximizing operating income of as BD mobile displays)

Accelerating local production of LCD Securing enough supply of BD at competitive

Enhancing product lineups technology (CMP materials, cutting-edge packaging materials,

10 Toward the Latter Half of JSR 20i3 Our issues are clear. We must accelerate our efforts in the latter half of JSR 20i3. Petrochemical Products Fine Chemicals Continuing to invest in Category A products Increasing competitiveness in the market (S-SBR/IIR) with the aim of expanding for cutting-edge products where we the top line and increasing operating can differentiate ourselves from our income. competitors (semiconductors and Maximizing operating income of as BD mobile displays) through the optimization of product portfolios. Accelerating local production of LCD Securing enough supply of BD at competitive materials for TVs that are commoditized conditions through licensing the extraction Enhancing product lineups technology (CMP materials, cutting-edge packaging materials, LCD external cell materials, OLED materials) Strategic businesses Timely commercialization of the Precision Materials & Processing business Expand new businesses in the analog type industries on a long-term basis (life science, capacitors) Continuing strategic investment 9

11 3. Counter Measures

12 The Vision of JSR 20i3 Providing value through JSR s materials to the growing industries of the age, contributing to society and maintaining continuous growth. Nurturing businesses that will become globally No. 1 or No. 2 in the world and aiming to become a company that possesses de facto technologies. Growing industries and JSR s business domains Next generation materials LIC/ The materials of E2 concept Biomedical business Precision materials&processes (ARTON, ITO, LUCERA) New semiconductor materials (ArF, multi-layer materials, EUV) New FPD materials (Alignment Films,TSP,OLED) Portfolio of the future generation materials Portfolio of the stragic businesses Portfolio of the core business S-SBR,IIR(A category in Petrochemical Products ) FY2013 FY2016 FY2021

12 Strengthen Core Businesses * Published Apr 2011 Expand JSR's earning base by developing products that become first or second in world market share.

Petrochemical Products Push the top line of S-SBR up to global market share of 20% in 2015. Maximizing operating income with a "as Butadiene" base.

13 12 Strengthen Core Businesses * Published Apr 2011 Expand JSR's earning base by developing products that become first or second in world market share. FPD Materials Keeping a de facto position of alignment films. Strengthening the development in the field of small and mediumsized TSP and OLED. Petrochemical Products Push the top line of S-SBR up to global market share of 20% in Maximizing operating income with a "as Butadiene" base. Semiconductor Materials Growing ArF global market share up to 40% in Expanding the product lineup of peripheral materials (multilayer, DSA, TSV, CMP and cuttingedge packaging materials)

14 Petrochemical Products S-SBR: Continuing to consider the construction of a new production * Published in Apr 2011 base after 2016 in addition to the 2nd phase construction of a plant in Thailand to cope with rising demand for fuel-efficient tires. 2,000 1,500 1, A project to construct an S-SBR Plant in Thailand progressed steadily. 2. Aiming to obtain 20% or more of market share in 2015 and become the No. 1 player in the world in the field of S-SBR. GLOBAL S-SBR BALANCE(Revised) Demand growing due to the labeling system in emerging countries 1,050 1,100 Supply 1,200 (Unit: Thousand Ton) 1,600 1,550 1,400 1,450 1,300 Demand-LMC (Source)IISRP, CMAI, LMC, JSR Estimates CAGR( )12% More than20% JSR s share in S-SBR business in 2015 Update of the tire labeling system in each country Japan Europe Korea China Brazil U.S. Implemented in January 2010 Will legislate mandatory labeling in November 2012 Will strengthen Regulation in November 2015 Will make labeling obligatory at end of December 2012 Currently under study to introduce system around 2013 to 2015 Currently under study to introduce system between 2013 to 2015 Currently under study to introduce the system *Other countries like Turkey and Australia are considering introduction of labelling systems. 13

Petrochemical Products * Published in Apr 2011

secure profitability, even with a shortage of BD of

Ensuring procurement of BD under advantageous

production 2012 2013 2014 2015 2016 Diversifying BD

an alternative to BD will become available Applying

portfolio on an As BD basis Expanding the S-SBR

Shortage of BD In our worst-case scenario, we assume

15 Petrochemical Products * Published in Apr 2011 Started creating a mechanism that enables us to secure profitability, even with a shortage of BD of up to 2 million tons. Ensuring procurement of BD under advantageous conditions Maximizing the value of BD Expanding the production Diversifying BD suppliers Determining whether technology to produce an alternative to BD will become available Applying pricing on a BD basis Reviewing the business portfolio on an As BD basis Expanding the S-SBR production base overseas Projection of Possible Shortage of BD In our worst-case scenario, we assume that the shortage of BD will reach 2 million tons. To be created by 2015 BD Worldwide demand-supply balance(cmai,jsr) 14

16 Semiconductor Materials Maintaining the leading * Published Apr position 2011 in the fast growing cutting-edge materials market The semiconductor materials market is expected to continue to grow, centering on ArF and multilayer materials Trend of cutting-edge semiconductor materials ArF Dry Multi-layer materials (TARC,BARC) ArF Immersion DP Non-Critical (BEOL/Impla) Semiconductor sales trends (Unit;B$) DSA TSV New multi-layer materials (for DP,EUV,3D,NIL,DSA) 15nm HP EUV Courtesy of SEMATECH CAGR 5% CY Source: Gartner (September.2012) 15

17 Semiconductor Materials ArF: * Published in Apr 2011 Capturing more than 40% market share is within reach. Aiming to increase market share, centering on 20-nm Logic and DRAM devices, which will become the main products in the market in the future Changes in JSR s relative market share in ArF NAND Logic DRAM 50nm 40nm 30nm 20nm 10nm Main products in the market in 2012 Main products in the market in 2013 More than40% Projection for ArF share in 2015 Pushing JSR into a leading position in 20- nm products (Source)JSR Main products in the market after

18 FPD Materials B$ FPD Industry expected * Published in Apr to 2011grow stably. Innovation and signification growth expected in small and medium-sized displays, touch panels, and OLED. 39 FPD sales trends (Unit;B$) AMEPD OLED RP PDP LCD CRT CAGR 6% FPD materials Source: Display Serch JSR B$ CAGR 22 % Sales trends of touch panel module On-Cell SOG In-Cell Others 16 Electrostatic capacitive type Resistive type touch panel module

19 FPD Materials Business growth along two points: 1 response to globalization centering * Published in Apr 2011 on Asia. 2 development of cutting-edge materials. Expanding product lineup of fast growing small and medium-sized displays, TSP and OLED. Large panel Small and medium Panel LCD:10 trillion yen (Market size in 2016) Alignment films Color pigmented resists insulator Spacer Protective coating ARTON base ultimately thin retardation film Alignment films for mobile (FFS/Photo horizontal alignment films) High-definition spacer Insulator for mobile TSP:3 trillion yen (Market size in 2016) Response to globalization centering on Asia New alignment films 3D alignment films High function insulation materials Expanding product lineup 1:Materials for TSP/Middle and Small size panel ITO Firm Insulator/Protective coating for TSP OPSTAR for TSP Optical adhesive DF insulation materials Color pigment resists for bezel OLED:2.2 trillion yen (Market size in 2016) 2:OLED Materials Bank Planarization layer Sealing materials Materials for light output Adhesive for sealing materials Color pigment resists for OLED Photoactive shielding material 18

20 19 Strengthen Strategic Businesses Focus on the medical and environment & energy fields. * Published in Apr 2011 Build a strategic story appropriate to the target market and build a logical business structure. Looking at prioritized issues and the position of Strategic Businesses through the Sunrise Chart

21 20 Strengthen Strategic Businesses Development of Environment & Energy and Life Sciences * Published in Apr 2011 businesses steadily progressing. Precision Materials & Processing business moving into an expansion phase. Precision materials & Processing Life science Environment & Energy ARTON ITO film New heat resistant transparent resin Diagnostic reagent intermediates Medical polymer CDx MDx bio-process materials New medical polymer Negative binder LIC Heat storage/latent heat materials Materials for E2 New heat storage materials Research Development Deployment

Biomedical Business Concentrated investment *

Forming a materials cluster using our own

Purification process market and JSR s target

Filter Membrane Abs Monolith Consumer goods

Continuous $10 Chromatography A B C D E 180bil

process for manufacturing drug (Source;JSR) G

Partner A Partner B Business development model

particles Photoresist 100 billion yen(2020)

CAGR 10%(2000-2010) Antibody drug manufacturing

22 Biomedical Business Concentrated investment * Published in bio-process in Apr 2011 materials. Forming a materials cluster using our own technology and partnerships. Purification process market and JSR s target Afinity particles Ion exchange HIC/Mix Mode SEC Filter Membrane Abs Monolith Consumer goods market /$M $310 $320 $170 $40 $880 $40 $5 Continuous $10 Chromatography A B C D E 180bil 300bil F Market size of purification process for manufacturing drug (Source;JSR) G JSR Protein A Commenced the sale in Oct 2012 Partner A Partner B Business development model (comparison with photoresist business) Affinity particles Photoresist 100 billion yen(2020) Market Size 100 billion yen(2012) 10%( ) CAGR 10%( ) Antibody drug manufacturing process One on One& One on Many Application Marketing strategy Semiconductor manufacturing process One on One 21

Lithium Ion Capacitors Participating in the smart water meters (SWM) segment, one of * Published in Apr 2011 main applications of LICs.

manufacturers Global market of SWM(right axis) 2013 2014 2015 2016 2017 2018 2019 30 Existing SWMs Two-way communication Meter reading No self-power generation + Sponsorship The

Improving the efficiency control functions of electricity storage and capacity by LICs +Opening and closing valves +Controlling water pressure +Detecting water leakage in urban areas + 45

23 Lithium Ion Capacitors Participating in the smart water meters (SWM) segment, one of * Published in Apr 2011 main applications of LICs. Strengthening our partnership with a leading manufacturer to accelerate cultivation of the U.S. market Joint promotion with Capstone Metering LLC, one of the largest SMW manufacturers Global market of SWM(right axis) Existing SWMs Two-way communication Meter reading No self-power generation + Sponsorship The cooperation of market development Sales projection of next generation SMW (Millon unit ) Target generation 1 st generation SWM 2 nd generation SWM market for next SWM Addition of remote Improving the efficiency control functions of electricity storage and capacity by LICs +Opening and closing valves +Controlling water pressure +Detecting water leakage in urban areas Increasing additional functions including wireless module, etc. Apartments Sales of LIC Cooperation in technology development Locations considering the installation of the Smart Water Meter to efficiently control water use. SWM Water supply management 22

-20 Cold insulator -20~80 Selectable temperature range of phase change materials 0 20 40 60 Cooling (Air conditioning) Heat storage and hot water storage Solar heat utilization CALGRIP enables users

24 CALGRIP CALGRIP will be shipped * Published as in a Apr cold 2011 insulator for medical and luxury foodstuff in the current fiscal year. Applications are being investigated in the field of air conditioning, heat storage for buildings, hot water storage tanks, construction materials and transportation. -20 Cold insulator -20~80 Selectable temperature range of phase change materials Cooling (Air conditioning) Heat storage and hot water storage Solar heat utilization CALGRIP enables users to keep things cool in a temperature range that was previously difficult to achieve, and to reduce the space required for cold insulation equipment that needs precise temperature control. CALGRIP (filled in plastic containers) Billion Yen Market of heat insulating materials for medical supplies 80 Waste heat utilization (Source: IMAR, JSR survey) 23

25 4. To Our Investors

25 Summary We will steadily solve management and business issues set by JSR * Published in Apr 2011 20i3 and devote ourselves to accomplishing the net sales and operating income targets when the

26 25 Summary We will steadily solve management and business issues set by JSR * Published in Apr i3 and devote ourselves to accomplishing the net sales and operating income targets when the business environment improves. We will achieve product groups that consistently out-achieve the growth of our customer markets in addition to a management portfolio with growth potential that is stabilized by the core and strategic business combination. We will accomplish sustainable growth by solving management issues with a firm hand in the early 2010s, a decade which so far has been known for its uncertainty and diversity.

Nikon Medium Term Management Plan

NIKON CORPORATION Mar.30,2006 Nikon Medium Term Management Plan March 30, 2006 NIKON CORPORATION This presentation contains forward-looking statements with respect to future results, performance and achievements