Nittobo Group Progress of “Go for Next 100” Mid-term ... · Nittobo Group . Progress of “Go...
Transcript of Nittobo Group Progress of “Go for Next 100” Mid-term ... · Nittobo Group . Progress of “Go...
-
Nittobo Group Progress of
“Go for Next 100” Mid-term Business Plan
New Building of the Research and Development Headquarters 「NI-CoLabo」(Conceptual Drawing)
May 21, 2019
-
1.Towards realization of “Go for Next 100”
-
Operating profit/Profit attributable to owners of parent/ROE
3
(Billions of yen)
2.6 2.2
6.5 5.96.6 6.5
8.9
10.9 11.1 10.8
8.2
1.3
2.8
1.4
2.83.9
4.65.6
7.5
10.3
7.9
0.0%
2.5%
5.2%
2.6%
5.0%
6.3%
6.8% 7.6%
9.8%
12.5%
9.1%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
▲91
Operating profit
Profit attributable to owners of parent
ROE
-
With distinctive businesses and product groups based on customers and technology, from the founding site of Fukushima, and from Japan
company that keeps sending innovation to the world
<Glass fiber> Establishes a position as a leader in the glass fiber industry
<Medical> Supply of high quality in vitro diagnostic reagents for self medication
<Textile> Promote high functional products and transform into a profitable business
4
Company image to be aimed at FY2023 (101st years of establishment)
-
FY2016
Net Sales JPY83.3bil
Ope Profit JPY11.1bil
FY2020
Net sales JPY100.0bil
Ope Prifit JPY12.0bil
FY2023
Net sales JPY150.0bil
Ope prifit JPY15.0bil
Mid-term Plan ≪Go for Next 100≫
Corporate image to be aimed at "Long-
term vision 101"
Tokyo Olympics
100th anniversary of business / 101st year
◆ Business portfolio
・ Expansion of value-added products and overseas sales ratio
・ Make Medical business a Second Pillar
Long-term vision and Medium-term plan
5
Create a foundation for FY2023
-
1.41.6 1.5
1.8
1.7% 1.9% 1.8% 2.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
0.0
0.5
1.0
1.5
2.0
2.5
FY16 FY17 FY18 FY19(Forecast)
The
ratio
n of
R&
D s
pend
ing
to s
ales
Bill
ion
yen
Changes in R&D spending
2.0
7.0 11.9
21.3
5.0
0.0
5.0
10.0
15.0
20.0
25.0
FY16 FY17 FY18 FY19(Forecast)
Bill
ion
yen
Changes in Capital Expenditure (based on acceptance)
16.9
0% 20% 40% 60% 80% 100%
Progress of the Mid-term Capital Expenditure Plan(approval basis)
Capex plan (4 years total): JPY55bil. Capex of 90%, JPY50.0bil has already been decided as of end of FY18.
M&A
R&D Head count 70 80 95 106 6
Status of capex, depreciation, R&D expenses
FY17 FY18 FY19~
4.1 4.1 4.1
5.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
FY16 FY17 FY18 FY19(Forecast)
Bill
ion
yen
Depreciation (Straight-line method from FY18)
-
FY2021~ FY2017 FY2018 FY2019 FY2020
Glass fiber
Medical
R&D
Enhance special glass Fukushima(Koriyama)
Enhance special glass (Scheduled) Fukushima/Taiwan
New furnace for NE glass for composite material
Respond to ultra-thin
Taiwan(NAG)
Tochigi
Acquire shares/Respond to ultra-thin Taiwan(Baotek)
NEW building (1st stage) Fukushima(Koriyama)
(2nd stage) Fukushima(Koriyama)
New building US (NTB-A)
‘19/12 ‘20/12
Acquired Kamiya (US) Invest to Rimco Corporation
Acquired Frontier Institute
Established FAN(a JV with Fujikura Kasei)
Reorganization of the R&D HQ
2017.1.1
Newly establish a R&D site ” NI-Tech”
Build a new building of the Institute ”NI-CoLabo”
Fukushima (Koriyama)
7
Main investments(deliver value-added products)
-
Textile, ▲ 0.5 Textile, ▲ 0.4 Textile, ▲ 0.1Textile, 0.0
Glass fiber9.5
Glass fibe6.6
Glass fiber6.4
Glass fiber9.0
Life science2.9
Life science2.6
Life science3.0
Life science3.0
Others, ▲ 1.1 Others, ▲ 0.7 Others, ▲ 1.0Others, ▲ 1.0
FY17 FY18 FY19(Forecast)
FY19(H2x2)
FY20(LY of MTP)
FY23
Operating income trends by business segment
10.8
8.2
11.0 12.0
15.0 (billions of yen)
8.5
8
-
2.Business strategy
-
○Global environmental issues ○Low birthrate and aging population, social security expenses increase ○Acceleration of Smart technology (Automobiles,house,appliance,cloth) ○Expansion of IoT, big data, Cloud networking and information networks
○Weight reduction of automobile and airplane ○Increase of network traffic ○Increase of capacity and speed of communication ○Automatic operation of car
○Preventive medicine, personalized medicine ○Cancer, innunology, allergy needs ○Multi-functionalization of materials for clothes. (Conductive, Deodorize, Stretching, Warmth-keeping)
Opportunities to take advantage of Nittobo’s strength
10
Trends in social and market economic changes surrounding our company
-
Glass fiber business
-
12
Technical trends ・5G ・Cloud computing ・Self-driving ・AI、IoT、VR/AR ・Smartphone high-ended
PCB trends ・Miniturization ・High density, multi-layer ・High frequency-compatible ・High stiffness ・Low CTE
Glass cloth trends ・Ultrathin type ・Low Dk, low Df ・High reliability ・High stiffness ・Low CTE
Demand for our special glass expands as new technologies (next-generation communication standard 5G, AI, IoT, etc.) arrive.
5G
Growth opportunities (Electric material area)
-
T Glass NE Glass
Existing main applications
Electronic substrates for semiconductor package Electronic substrate for data center and base station and server
New applications
Needs for composite materials using high-strength glass
Low dielectric, Low transmission loss
・ Expand application of high value-added T glass and NE glass ・ Strengthen business for industrial materials by new establishment of Customer Solution Department
Increased applications of special glass
13
-
[Product characteristics] ・Superfine court yarn Produce the world’s finest yarn of a stable quality ⇒ Electronics getting smaller and thinner ・NE glass Low-dielectric feature and reduce transmission loss and noise ⇒ Contribute to high-speed/high capacity communications leading up to 5G ・T glass Actualize high-strength, low thermal expansion ⇒ Essential for high density package substrate [Technical characteristics] ・Have both a spinning process and a weaving process and making the integrated production possible 〔There are fewer companies that have both a spinning process and a weaving process on a large-scale basis〕 ・In the spinning process, stable production of the world’s finest glass yarn (4 μ) , NE/T glass ・In the weaving process, actualize the optimum weaving process or processing process in line with characteristics of individual yarns, making use of the knowhow of the spinning process
14
Strength of Glass fiber business
-
Special Composition
General purpose composition
Fine count/thin material
Thick count/thick material
E glass thick count (general-purpose use)
・Priority investment in expansion of production capability and application expansion of high value-added products (E glass superfine to fine count yarn and T/NE glass, etc.)
Nittobo Strength
E glass Superfine~ fine count
yarn
15
Investment priority area
T Glass(Low thermal expansion) NE Glass(Low dielectric)
-
Enhance yarn production capacity ・Enhance production capability of special glass (T/NE)yarn Nitto Glass Fiber Manufacturing Co., Ltd. [Koriyama:~ 2019 H2] Fukushima No.1 factory [Fukushima:2020~] Nittobo Asia Glass Fiber Co., Ltd. (NAG) [Taiwan :2021~] ・Enhance production capacity of fine count yarn
NAG [Taiwan:2019 H2~] Introduce facility of special glass (NE) for composite material
Fuji Fiber Glass Company, Ltd. [Moka:2018 H1~]
Enhance production capacity of high value-added glass cloth Fukushima No.2 factory/Enhance weaving machine’s processing ability [Fukushima 2018 H2~]
Acquired shares of Baotek Industrial Materials Ltd (Taiwan)[Aug., 2018] Processing process 〔Super-thin cloth manufacturing〕 [2019 H2~] Enhance production capacity of fine fabric GW Enhance production capacity of non-formaldehyde GW
Raw materials for
weaving ??
Functional materia
ls
Equipment materials
16
Glass Fiber Business(Main measures)
Glass fiber yarn
Glass fiber cloth
Glass fiber for
industrial materials
-
0
50
100
150
200
250
300
350
400
FY18 FY19 FY20 FY21 FY22
Tガラス
Explanatory note
Expected demand
Capacity (1) Operation FY 2019
Capacity (2) Considering details to establish
new furnace in Taiwan/Fukushima
17
Expected demand and increasing production capability for yarn
0
50
100
150
200
250
300
350
400
FY18 FY19 FY20 FY21 FY22
NEガラスNE Glass T Glass
-
Site Current Plan Site Current Plan
E Glass Mainly super fine yarn
E Glass Mainly super fine yarn
E glass Mainly super fine cloth
E glass (reduce) Mainly super fine cloth
Special Glass NE, T yarn
Special Glass NE, T cloth
E Glass fine yarn E Glass fine yarn New furnace for Special glass
E glass Thick count to fine count
E glass Increase in ratio of fine count
E glass NTB products production starts
E Glass Super fine cloth Expand NTB products
Special glass -
Special glass New furnace (plan)
Special glass -
Special glass NE,T Cloth (under consideration)
Japan
Taiwan
ClothYarn
Fukushima2nd
NAG BAOTEK
NGK(Koriyama)
Fukushima1st
Special Glass NE, T yarn, Next generation NE
Special Glass (expand) NE, T cloth, Next generation NE
Glass fiber site strategy
18
Red letter: Plan
Sheet1
YarnCloth
SiteCurrentPlanSiteCurrentPlan
JapanNGK(Koriyama)E Glass Mainly super fine yarnE Glass Mainly super fine yarnFukushima2ndE glass Mainly super fine clothE glass (reduce) Mainly super fine cloth
Special Glass NE, T yarnSpecial Glass NE, T yarn, Next generation NESpecial Glass NE, T clothSpecial Glass (expand) NE, T cloth, Next generation NE
Fukushima1stE Glass fine yarnE Glass fine yarn
New furnace for Special glass
TaiwanNAGE glass Thick count to fine countE glass Increase in ratio of fine countBAOTEKE glass NTB products production startsE Glass Super fine cloth Expand NTB products
Special glass -Special glass New furnace (plan)Special glass -Special glass NE,T Cloth (under consideration)
Sheet2
Sheet3
-
■ Respond to fine count /establish a plant building , to be completed on May 23, 2019 ■ Improve production capacity of special glass Production to start in autumn of 2021
NAG(Nittobo Asia Glassfiber)facility improvement
19
-
Medical business
-
1) Reinforce functions in the value chain, enhance procurement ability for raw materials in particular 2) Establish a supply chain of production/sales/regulatory approval globally
Nittobo Medical
Nittobo America /Kamiya Biomedical
Antigen antibody Development
production
Preparation (bulk products)
Dispending (kit products)
Regulatory approval Sales
●Polyclonal antibody Nittobo America ●Monoclonal antibody Rimco Corporation Frontier Institute ●Latex particles FAN
Japan
North America
Considering a specific development EU
Considering a specific development China
21
Business strategy in medical (invitro diagnostic) business
-
Expansion of plant at Japan & US (Production capacity expansion from FY2020) ・Nittobo Medical ・Nittobo America ■ Reinforce sales in the US ・Kamiya Biomedical Company, LLC (become subsidiary) ■ Reinforce research/production capability ・ Investment in Rimco Corporation (Development and production of in vitro diagnostic materials using genetically modified silkworms) ・ Acquired Frontier Institute co., Ltd. (R & D and production of monoclonal antibodies) ・ Establishment of FAN Co., Ltd. (JV with Fujikura Kasei Co., Ltd., R&D of in vitro diagnostic materials) 22
Medical Business (major measures)
-
Textile business
-
Transfer of Nittobo (China) Co., Ltd., (wholly-owned subsidiary) to a Chinese local company (Zhejiang Yinyu New Material Co., Ltd.). With the support of sales, production and development from Nittobo Trading Wuxi Co., Ltd., the company will continuously supply products to current customers. ⇒ Improve the efficiency of the textile business operation and strengthen its competitiveness
1995 Established in Wuxi city, Jiangsu Province, China 1997 Started operation. Since then, has been producing high quality, high function interlinings. ・Labor cost increase, response to environmental regulations ・Strong Chinese RMB ⇒ Intensifying price competition in the general-purpose products market ⇒ Sluggish performance
24
(reference) Nittobo (China) Co., Ltd.
Textiles Business Structural Reform (1)
-
■Focus on development/sales of new products ・Functionality interlining:deodorization, antibacterial, antifouling, cool feel, antistatic treatment raw yarn: deodorization, water absorption/quick drying, lightweight ・Reinforce innovative fabric (windproof, cotton lining, chambray) ・Develop products other than fashion clothing including sports application, etc. (backing,bandage) ■Develop environmentally-friendly products ・Fluorine-free interlinings ・Expand a product lineup using recycling materials ・Measures to save water in the dyeing process ■Develop into the industrial-use material field ・Reinforce collaboration with Glass Fiber Business ・Early launch of products of industrial-use materials
[Windproof] [Cotton] [Chambray]
Textiles Business Structural Reform (2)
25
-
3.Shareholder Returns/Dividends
-
Shareholder Returns/Dividends
A dividend for fiscal 2018will be determined at the general meeting of shareholders slated for June 26, 2019. An interim dividend and a year-end dividend are expected to be 20.0 yen and 20.0 yen per share, respectively, for fiscal 2019.
27
・Based on stable dividend growth, decision is made with a view to payout ratio (linked to performance). ・ Consider flexible shareholder returns depending on the financial situation from time to time.
2.6 2.2
6.5 5.96.6 6.5
8.9
10.9 11.1 10.8
8.2
1.3
2.8
1.4
2.83.9
4.65.6
7.5
10.3
7.9
0.0%
2.5%
5.2%
2.6%
5.0%
6.3%
6.8% 7.6%
9.8%
12.5%
9.1%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
▲91
Operating profit
Profit attributable to owners of parent
ROE
-
Note on the handling of this document
Numerical forecasts contained in this document were created
on the basis of information available to the Company as of the
date of the announcement. This document is not intended to
provide any promise or guarantee on the achievement of future
financial results and measures.
-
Appendix
-
30
Progress of“Go for Next 100”Mid-term Business Plan
Earnings targets (Billions of yen)
FY18 FY20 Y23
ActualH1
actualH2
actual
Sales revenue 82.2 42.0 48.0 90.0 100.0 150.0Operating profit 8.2 3.0 5.5 8.5 12.0 15.0Ordinary profit 8.9 3.1 5.7 8.8 12.0 15.0
Profit attributable to owners of parent
7.9 2.2 4.0 6.2 8.0 10.0
ROE 9.1% - - - ≧8% ≧10%
Net interest-bearing debt 8.8 - - - ≦10.0 0.0
Equity ratio 59.4% - - - ≧60% ≧70%EBITDA 12.2 5.9 8.0 13.9 20.0 -
Capital expenditures and R&D
R&D expenses 1.5 - - 1.8 ≧2.0R&D expenses to sales ratio 1.8% - - 2.0% ≧2%Capital expenditures 11.9 - - 21.3 55.0 4 years, cumulative
Foreign exchange rate 110.7 - - 108.0 100.0
FY19 forecast
-
2017/1/4 研究開発体制の再編
2018/2/27 体外診断薬の日米両生産拠点の拡充
2018/4/25 汎用自動分析装置用IgG4測定試薬の製造販売承認の取得
2018/4/26 Baotek Industrial Materials Ltd.(台湾)の株式取得に向けた公開買付けの開始
2018/7/2 日東紡NI-Techの開設
2018/8/2 総合研究所新社屋の建設
2018/8/3 Baotek Industrial Materials Ltd.(台湾)に対する公開買付の結果
2018/8/31 リムコ(株)の株式の取得
2019/1/4 Kamiya Biomedical Company LLCの持分の取得
2019/3/15 藤倉化成(株)との合弁会社の設立
2019/3/28 スペシャルガラスの生産設備の増設(方針)
2019/4/1 (株)フロンティア研究所の株式の取得
2019/4/18 日東紡中国の持分の譲渡
2019/4/19 Baotek Industrial Materials Ltd.(台湾)の連結子会社化(見込)
発表日 内容
31
Main announcements(2017~)
Announcement date Detail
2017/1/4 Reorganized the research and development structure
2018/2/27 Expanded production sites of invitro diagnostic drugs both at Japan and the U.S. sites
2018/4/25 Obtained approval of manufacturing and sales of IgG4 measuring reagent for general-purpose automatic analyzer
2018/4/26 Commenced TOB toward the acquisition of shares of Baotek Industrial Materials Ltd. (Taiwan)
2018/7/2 Opened Nittobo NI-Tech
2018/8/2 Built a new building of the Institute for general research
2018/8/3 Result of TOB against Baotek Industrial Materials Ltd. (Taiwan)
2018/8/31 Acquired shares of Rimco Corporation
2019/1/4 Acquired a stake in Kamiya Biomedical Company LLC
2019/3/15 Established a JV with Fujikura Kasei
2019/3/28 Expanded the production facility of special glass (policy)
2019/4/1 Acquired shares of Frontier Institute co., ltd.
2019/4/18 Transferred a stake in Nittobo (China) Co., Ltd.
2019/4/19 Make Baotek Industrial Materials Ltd. (Taiwan) into a consolidated subsidiary (expected)
スライド番号 1スライド番号 2Operating profit/Profit attributable to owners �of parent/ROE Company image to be aimed at FY2023�(101st years of establishment)スライド番号 5スライド番号 6スライド番号 7スライド番号 8スライド番号 9Trends in social and market economic changes surrounding our companyスライド番号 11スライド番号 12スライド番号 13スライド番号 14スライド番号 15スライド番号 16スライド番号 17スライド番号 18スライド番号 19スライド番号 20スライド番号 21スライド番号 22スライド番号 23スライド番号 24スライド番号 25スライド番号 26スライド番号 27スライド番号 28スライド番号 29スライド番号 30スライド番号 31