Documente Academic
Documente Profesional
Documente Cultură
Investors Meeting
December 8, 2011
Yoshimitsu Kobayashi
President & Chief Executive Officer
Mitsubishi Chemical Holdings Corporation
List of Abbreviations
MCHC: Mitsubishi Chemical Holdings Corporation
MCC: Mitsubishi Chemical Corporation
MTPC: Mitsubishi Tanabe Pharma Corporation
MPI: Mitsubishi Plastics, Inc.
MRC: Mitsubishi Rayon Co., Ltd.
MEP: Mitsubishi Engineering-Plastics Corporation
JPP: Japan Polypropylene Corporation
Todays Agenda
Yoshimitsu Kobayashi
President & Chief Executive Officer
Mitsubishi Chemical Holdings Corporation
Business Challenges
Progress in the First Year of APTSIS 15 (FY2011 FY2015)
Key Growth and Cash-generating Businesses
Growth and Next-generation Growth Businesses
APTSIS 15 Goals
Hiroaki Ishizuka
Senior Managing Executive Officer
Mitsubishi Chemical Corporation
Business Challenges
Business Environment
Globalization
Sustainability
Changing gear
Solutions
Differentiation
Innovation
Globalization (G)
1Difficulty of differentiation (by digitalization and IT)
2Securing resources (key challenges: rare earths, crude oil,
and the Great East Japan Earthquake on 11, March)
3Speed (in an increasingly borderless world)
4. A decoupling and coupling world
Decoupling
Asia, South America,
Eastern Europe, Middle East
Capturing Asian growth markets with sales of
commodities and other resources
Scale and global expansion
- Inflationary risks
State Capitalism
- Country risks
Japan,
Western Europe, North America
Heading toward high performance and
high-added value and solutions
- Sep.11, 2009 - Sep.15, 2008 - Mar.11, 2011
- Volatile trends - Downgrade of U.S. debt
- Sovereign risks
Coupling
Free Market
Sustainability
The Environment
Economy
Society
Such as
population of 7 billion,
aging society
and problems of
developing countries
Changing gear
Speedy optimization
7
High
corporate taxation
Regulatio
Regulations
ns
Labor legislation
Japanese
companies
Addressing TransPacific Partnership and
free trade and
economic partnership
agreements
Global market
Greenhouse
gas emission
reductions
Trade
policies
Heavy commitment
Electricity
costs
Nuclear power issues
Raw
materials
costs
Competition for resources
Provide employment
Notably in the service, agriculture, forestry and
fisheries and healthcare sectors
10
Next-generation
Growth Business (6)
Organic photovoltaic modules
and materials
Organic photo semiconductors
Advanced performance products
Agribusiness solutions
Healthcare solutions
Sustainable resources
Todays topics
FPD components
Performance composite materials
High performance molding products
Specialty chemicals
Water treatment system and services
Pharmaceuticals
High performance graphite
Performance polymers
MMA/PMMA
Business to be
restructured (15)
Naphtha crackers, etc.
Pharmaceuticals
Volumes
MMA performed basically as projected in the
first half, but present market conditions have
weakened owing to declining demand for
optical applications. PMMA earnings will likely
fall because of decreasing FPD demand.
Prices
PTA
Volumes
Earnings and profit increased in the first half.
Second half earnings will likely be lower than
in the first half because of higher operating
costs to prepare for product launches and
increased R&D expenditure.
FPD components
Volumes
Volumes
Although volume has not dropped much, the
spread has deteriorated and the market has
recently declined faster than envisaged.
Prospects do not look very positive for the
second half, either.
Prices
Prices
Spread
Prices
Carbon
Volumes
We assume that market conditions will weaken
in the second half, and will focus on maintaining
sales volume and prices with outstanding
customers with which we have enjoyed longterm relationships.
Prices
Spread
12
Net sales
100.0
1,000
2010
FY2010
2011
FY2011 Forecasts
(May
11) (Nov. 1)
Future initiatives
Create an integrated management structure for our global production
bases in MMA monomer, and maximize earnings for production plans
formulated to match demand trends
In PMMA, shift the sales portfolio from LED TV light guide plate applications to such
general applications as LED lighting and automobiles.
Continue to build global presence in large panels, a key Group strength
13
1-2: PTA
Current situation
While APTSIS 15 factored in declining market conditions from its inception, the
spread has deteriorated and the market has recently declined faster than envisaged
Prospects do not look very positive
That said, the volume impact is limited
[ / ]
[1,000t/y]
9 0 ,0 0 0
C otton
6 0 ,0 0 0
250
5 0 ,0 0 0
200
4 0 ,0 0 0
3 0 ,0 0 0
150
2 0 ,0 0 0
100
A c r y lic
N y lo n
Others
Wool
1 0 ,0 0 0
2015
14
13
12
11
2010
09
08
07
06
2005
04
03
02
2000
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
01
50
[$ / M T ]
P o ly e s t e r
7 0 ,0 0 0
2001
8 0 ,0 0 0
300
Future initiatives
Swiftly stabilize production at the No.2 production
facility in India
Further reduce costs by leveraging new technologies
that enhance energy and water efficiency
Currently reinforcing structure so we can secure
profits even if yearly average-spreads drop beneath
the worst levels of the past 10 years ($150/t)
$150/t
FY2008
FY2011
FY2013
14
Net sales
Future initiatives
Export focus shifting from Europe and the U.S.
toward India, Thailand, and other emerging nations
100.0
1,000
2010
FY2010
FY2011
Forecasts
2011
(May 11) (Nov. 1)
15
1-4: Pharmaceuticals
Current situation
Exceeded projections in the first half, notably because of increased income from
technology licensing fees for FTY720 (Gilenia, multiple sclerosis treatment)
In the second half, we expect lower earnings because of significantly higher
marketing spending on four new products (Lexapro, Simponi, Telavic, and Imusera)
and higher R&D expenditure stemming from development progress
Future initiatives
FY2011: Steadily cultivate Remicade and new products (Lexapro and Simponi)
From FY2012: Boost earnings by offsetting declines from a revision in NHI drug
prices through gains from new products and increased volume of key products
(Billions of Yen)
381.0
Approx.
380.0
Overseas
running
royalties
Reduced
volumes of
non-key
products
Other
increases
Approx.
440.0
Increased
volumes of
new products
FY2010
FY2011 Forecasts
(May 11) (Nov.1)
Increased volumes
of key products
FY2013
Target
Remicade: Indication changed for treating Crohns disease; Venoglobulin: For generalized Myasthenia Gravis; Lexapro: Antidepressant;
Simponi: For rheumatoid arthritis; Telavic: For chronic hepatitis C; Imusera: For multiple sclerosis
FY2015
Target
16
Current situation
In FY2011, revenues and earnings likely to suffer
from downturn in global LCD television market,
chronic inventory adjustments in LCD
components, and yens appreciation
From 2012, likely to feel effects of slower
expansion in large panel production and further
price declines
Some products have only slight price decreases
because of their market share and the nature of
the products
150.0
100.0
50.0
2010
FY2010
2011
FY2011
Forecasts
(May
(Nov. 1)
11)
Future initiatives
We are reviewing overall projections for FPD components growth rates, but we
anticipate ongoing expansion, as we are specializing in the smiling curve area on the left
That said, we will continue to push ahead with materials in which we have superior
quality, including by accelerating overseas expansion.
At the same time, we will radically overhaul our business in materials for which it is
hard to differentiate quality, including by freezing investments and developing other
applications
17
Health
Health and healthcare
Comfort
New materials
Electronics
businesses
18
3. Synergies
19
Health
Comfort
New materials
Organic
Agribusiness
Photo
solutions
semiconductors
Performance
composite
materials**
OPV
modules and
materials
Advanced
Sustainable performance
products
resources
Healthcare
solutions
Todays topics
2010
2015
2020
20
Agribusiness
solutions
resources
Biomarkers
The environment
and new energy
(Sustainability)
Lithium-ion battery
Advanced
performance
products
Bioplastics
DNA chips
High-performance graphite
Alumina fibers
MCC Gr.
Zeolite
MTPC Gr.
MPI Gr.
MCHC
MRC Gr.
Polysilicon
Sealants
Organic photo
semiconductors
Organic photovoltaic
modules and materials
21
Coal
Coke oven
Coal Tar
Electricity generation
Carbon black
Pitch
Needle coke
Pitch-based carbon
fibers
PAN-based carbon
fibers
Windmill, automobile,
Sports and leisure,
aircraft
C60(Fullerene)
Organic photovoltaic
(OPV)
Crude oil
Acrylonitrile
PAN
fibers
22
(t/y)
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
General industry
Sports & Leisure
Aircraft
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
23
6,000t
in 2011
10,000t
in 2013
16,500t
in 2015
We have already begun steady production and sales of highperformance LT carbon fiber
24
25
Generating Synergies
2010
2012
APTSIS 15
2015
Launch mass
production
techniques
Launch mass
production
Aerospace usage
Collaborate with Cytec in aerospace development
Undertake activities to secure quality certifications from domestic and foreign aircraft
manufacturers
26
Mitsubishi Corp.
POSCO Chemtech
Technology
Japan 40%
Korea 60%
Sakaide Plant
Engineering
fees
New JV
Coal Tar
(Annual production capacity)
Needle coke
Pitch coke
(After 2014)
320,000t/y
60,000t/y
40,000t//y
Needle coke
External
Pitch coke
By-products oil,
etc.
sales
Tar sales
Several tens of thousands of tons
POSCO
Pohang steelworks
Coal Tar 250,000t/y
POSCO
Gwangyang steelworks
Coal Tar 320,000t/y
Pohang
Gwangyang
27
Added Value
High
50.0
Material business
Lighting business
Billions of Yen
billions of Yen
50.0
Lighting apparatus
Other materials
Phosphors
GaN substrates
40.0
Billions of Yen
billions of Yen
40.0
2015
30.0
Light bulbs
Modules
30.0
20.0
20.0
10.0
10.0
0.0
0.0
FY2010
FY2011
FY2012
FY2013
FY2014 FY2015
In-house materials
Modules
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
Lighting apparatus
Lighting business with Verbatims
global sales channels
28
100M
10M
1M
SiC
100K
10K
Si
1K
GaN
100
10
InP
1
100
1K
10G 100G
Operating frequency Hz
Electronic devices
High
1G
Net sales
LED lighting
Green and blue
laser diodes
2009
2010
2011
2012
2013
2014
2015(FY)
Cultivate t
he lighting business globally
through the Verbatim marketing channel
RG phosphors
Remote phosphors
Conventional
setups
Remote
system
Luxury stores
Luxury housing
Medical lighting
Museums
Middle class stores
and housing
Outdoor scenes
(lighting effect)
Car headlamps
Conventional blue
excitation LED
lightings
Sales target for end-fiscal 2011
50,000 units monthlyWW
30
Japan
Electrolytes
Electrolytes
13,500t/y (FY2011 4Q)
Anode materials 7,000t/y (in operation)
Cathode materials 2,200t/Y (in operation)
Separator
27,000K m2 (FY2012 Q2)
Total capacity
as of FY2011 2Q
Electrolytes
8,500t/y
Anode materials
7,000t/y
Cathode materials 2,200t/y
Separator
12,000K
31
Anode materials
Carbon materials chemistry
Cathode materials
Control materials
based on graphite
Inorganic and
catalytic chemistry
Current
collector
Cu
Separators
Resin processing
Microstructure
design
Current
collector
Al
Electrolytes
Organic chemistry
Molecular design
High-safety design
We have testing capabilities and safety testing facilities for battery cells
that we are harnessing in materials development
32
Wind power
Next target
Stationary storage batteries
PV/OPV
Smart communities
PV/OPV
LEDs/OLEDs
LiB materials
Stationary
storage batteries
Cultivating our systems business through a Holy Grail combination of power generation
(PV/OPV), storage batteries (LiBs), and power savings (LEDs/organic OLEDs)
33
Drug development
expertise
Hollow fiber
membrane
separation
technology
Information
electronics
technologies
(Batteries and LEDs)
Biomarker
development
technologies
Computer science
Healthcare
solutions
Diagnostic
technologies
Metabolome
analysis
Metabolic
engineering
(including 1/f
fluctuation analysis)
Device
development
technologies
Simulation
technologies
34
Example of applications
Healthcare solution
MIMAMORI-gait
Adviser:
Professor Hiroshi Mitoma ,
Tokyo Medical University
Analysis
Actual measurement
e.g.
Quantitative measurements
of treatment effects of medications.
Expectation for early disease detection.
35
36
Purchasing
(23)
Logistics
(5)
IT units
(3)
Remarks
Set up office to prepare an equipment
(& materials) procurement center
FY2011
FY2013
Start in Jul.
FY2015
Review logistics
centers and others
Transition
Review operations
Transition
Review IT functions
R&D units
(0.5)
Intellectual
Property
Department
MCC/MPI/MRC: In July, launched joint development structure and project for carbon
fiber-reinforced thermoplastics
MCC/MRC: Leverage dehydrogenative oxidation catalyst technology synergies of
both companies to shorten lead time for butane to crude butadiene process
37
Streamlining efficiency
Harness human resources more efficiently by consolidating headquarters of Group companies (except MTPC) in
one location
Integrate business infrastructure and streamline office service management to cut costs
APTSIS 15 Goals
APTSIS 15 Strategies
Grow,
Grow, innovate,
innovate, and
and leap
leap ahead
ahead by
by orchestrating
orchestrating the
the Group
Group strengths
strengths
Strengthening
fundamentals
Growth
Strategy
Innovation
Strategy
Leaping Ahead
(M&A)
FY2012
(230.0 billion)
FY2015
400.0 billion
330.0 billion
70.0 billion
8%
1.0
45%
MOS
Indexes
(Major instances)
Health Index
- Index derived by the degree of difficulty to treat diseases & the number of administered patients
Comfort Index
- New products ratio in the Performance Product & Health Care domains
35%
MOS
(Management
of Sustainability
Sustainability)
Public Interest
Environment
(CSR), (RC)
Value
K={(F2+T2+S2)Wf[1-exp(-F2)]
Wt[1-exp(-T2)]Ws[1-exp(-S2)]}1/2
If any one of F,T and S is zero, K is zero, too.
Timeline
GHG
Crisis of
Financial
Capitalism
2008
Shareholder
s
Capitalism nes
si
u
B
is
Ax
n
io
t
n
io
tr a
t
s
i
ra
in
st
i
m
in
m
Ad
s
es
n
si
u
B
Ad
Capital Efficiency
ROE Management
Innovation
MOT
(Management of Technology)
Technology
F: Financial pe
T: Technology
S: MOS
Wf: the weight of F
Wt: the weight of T
Ws: the weight of S
1.
2.
Basic Strategies
3.
Business to be Restructured
4.
5.
6.
New Technologies
7.
43
Around 2015
Reduced cracker operations
1,000t
2007
2010
2011
650
600
550
500
2007
7,740kt/y
450
(Record production)
2010
2011
7,020kt/y
Approx. 6,700kt/y
400
Jan.
1
Feb.
2
Mar.
3
Apr.
4
May
5
Jun.
6
Jul.
7
Aug.
8
Sep.
9
Oct.
10 Nov.*
11* Dec.*
12*
45
1.
2.
Basic Strategies
- Business to be Restructured
- Growth and Cash-generating Businesses
- Next-generation Growth Businesses
3.
Business to be Restructured
4.
5.
6.
New Technologies
7.
46
2. Basic Strategies
Basic Strategies
Increase
Increase profitability
profitability by
by accelerating
accelerating globalization,
globalization, shifting
shifting to
to
high-performance
high-performance products,
products, and
and optimizing
optimizing product
product chain
chain
z Growth Strategy
Expand global operations and shift to high-performance products
with regional partners
z Cash-generating Business
Stabilize earnings and reinforce business structure
-Stabilize operations and minimize environmental impact
-Reinforce business structure by expanding technology licensing,
improving process technologies, and leveraging high-value-added products
-PTA, Coke, PP, PHL/BPA/PC, etc.
z Business to be restructured
Complete restructuring
47
2. Basic Strategies
Portfolio Management
Todays
Todays Topics
Topics
Performance Products Health Care Industrial Materials
Next-generation
Growth Business (6)
Organic photovoltaic modules
and materials
Organic photo semiconductors
Advanced performance
products
Agribusiness solutions
Healthcare solutions
Sustainable resources
Todays topics
Business to be
Restructured (15)
PP
48
1.
2.
Basic Strategies
3.
Business to be Restructured
3-1. Restructuring Plants
- Mizushima Plant
- Kashima Plant
- Other Plants
3-2. Business to be Restructured
4.
5.
6.
New Technologies
7.
Mizushima Plant
Increased
Increased flexibility
flexibility from
from operational
operational integration
integration
with
with Asahi
Asahi Kasei
Kasei Corporation
Corporation and
and downsizing
downsizing
1. Nishi Nippon Ethylene began operations in April 2011
Preparing an ethylene demand decline
2. Cracker downsizing in June 2011
Completed measures to counter higher costs during lower operations
3. Forming aromatics alliances in April 2012
Asahi Kasei Chemicals
(Zone C)
Ethylene
Ethylene
Mizushima Plant,
MCC
50
Kashima Plant
Strengthening
Strengthening competitiveness
competitiveness
through
through structural
structural reforms
reforms and
and regional
regional alliances
alliances
1. Structural Reforms
Ethylene:
Propylene:
Aromatics:
Shut down a part of benzene production facility Reduce benzene business risk
51
Other Plants
Strengthening
Strengthening our
our organization
organization largely
largely by
by rebuilding
rebuilding utilities
utilities
Kurosaki Plant
Yokkaichi Plant
Kashima Plant
(Kashima-Kita
Electric Power)
Naoetsu Plant
Yokkaichi Plant
52
FY
2008
FY
2009
FY
2010
FY
2011
SM chain
PVC chain
Nylon
chain
Surfactants
PTA
PP
53
1.
2.
Basic Strategies
3.
Business to be Restructured
4.
5.
6.
New Technologies
7.
54
Performance
polymers
Transfer PVC compound business owned by The Sunprene to Mitsubishi Chemical Performance
Polymers in the U.S. (Dec. 2011)
Rationalize domestic operations: Reorganized the Nagoya Plant (Oct. 2011)
PTA
PHL/BPA/PC
PP
55
APCO (Suzhou)
Newly establish a polyolefin elastomer
production facility
(To be completed in May 2012)
Mitsubishi
Chemical India
APCO Singapore
Sunprene (Thailand)
Expand a PVC compound production facility
Newly establish a flame-retardant polyolefin elastomer production facility
(To be completed in March 2012)
56
PC production facility
2011
BPA
PC
Construction
Construction
2012
End of Pilot
Aug. operation
End of
Pilot
Sep. operation
Beginning Commercial
of Dec. operation
Beginning
of Jan.Commercial
operation
57
High Performance: PP
Develop advanced PP technologies at the new pilot facility
Process type
Regular/general
purpose
Advances
in PP materials
Targets
R-TPO
WELNEX
Gas phase
High impact
Good transparency
R-TPO
NEWCON
ICP
RCP
Homopolymer
Slurry
Excellent transparency
High impact
Flexible
Low heat-seal
temperature
High-performance
Multicomponent
PP
High-performance ICP
Reactor
compounds
New process
Bulk
High-performance
/new
Catalyst
display
Metallocene
MCN)
Ziegler-Natta
-
58
FY
2008
FY
2009
FY
2010
FY
2011
Performance
polymers
PTA
PHL/BPA/PC
PP
59
Plant launches
Locations
Capacity (kt/y)
2008-2010
Korea
Saudi Arabia
Singapore
390
600
750
2008-2010
India
800
From 2011
Poland
600
BPA
From 2011
Thailand
China
Korea
150
150
150
PP
From 2011
China
China
200
200
PTMG
2008-2010
China
25
From 2011
Taiwan
Russia
65
80
EG
(OMEGA process)
PTA
Maleic anhydride
Acrylic acid
60
1.
2.
Basic Strategies
3.
Business to be Restructured
4.
5.
6.
New Technologies
- Raw Materials Diversification and Other Technologies
7.
Sustainable Resources
Delivering
Delivering new
new materials
materials that
that contribute
contribute
to
to the
the environment
environment and
and to
to sustainable
sustainable carbon
carbon society
society
Production techniques
employing plant-derived materials
Isosorbide
Glucose
Bio-succinic acid
Isosorbide
polymer
GS Pla
(March 2011)
Bio-1,4-BG
Alliance with Genomatica, Inc.
PTT MCC
Biochem
established
Bio-C4 chain
1,4-BG
PTMG
PBT
6. New Technologies
Raw materials
diversification technologies
Unused gas
DTP
BTcB
C2 Surplus
C3 Shortfall
C4 Shortfall
63
6. New Technologies
Naphtha
cracker
Butadiene extraction
Butadiene
Crude butadiene
Petroleum refining
Fluid catalytic
cracking
Butene
Oxidative
dehydrogenation
BTcB
64
6. New Technologies
Methanol
Natural gas, coal feedstock, and other raw materials
Methanol
DTP process
Propylene
Olefins
Derived from naphtha
and fluid catalytic cracking
65
1.
2.
Basic Strategies
3.
Business to be Restructured
4.
5.
6.
New Technologies
7.
66
2008
Alliance with
Asahi Kasei
2009
2010
NNE established
2011
2012
2013
Initial
evaluations
2014
2015
2016
Facilities integration
completed
Cracker
Refining partnership
Aromatics restructuring
VCM restructuring
Cracker
Refining partnership
Aromatics restructuring
PE
PP
Considering reorganization
Optimize production
Enhance
metallocene PE
Optimize production
Establish a new
Establish a new large-scale production facility
production facility
Develop advanced PP technologies
at the new pilot facility
Develop technologies
NNE: Nishi Nippon Ethylene
Commercialization
67
Progress in Derivatives
FY
2008
Shut down
PVC Mizushima
Yokkaichi
VCM
2009
2010
Mizushima
AO/HA Mizushima
CHX
CPL
Mizushima
Kurosaki
PX
QTA
Mizushima
Matsuyama
SM
Kashima
PTA
2011
2013
2014
2015
2016
BPA/PC
EO/EC
2012
Set up EO center
Boost EC capacity
Boost EC capacity
Other derivatives
optimization
68
Isosorbide
polymer
GS Pla
2008
2009
2010
2011
2012
2013
2014
2015
2016
Commercialization
(Capacity: 5,000t/y)
20,000t/y
MCC Biochem
PTT
established
100%
biomass
Commercialization
Bio-succinic acid
with
Alliance
BioAmber
Bio-1,4-BG
with
Alliance
Genomatica
Commercialization
Butadiene
Propylene
1-hexene
Develop technologies
Commercialization
Commercialization
Licensing
JV or licensing
BPA/PC
Non-phosgene DPC
Develop technologies
Non-phosgene PC
Develop technologies
JV or licensing
69
Earnings
contributions of
sustainable
resources
Earnings from
licensing
Strengthened
earnings from
growth and cashgenerating
businesses
Strengthened
earnings from
core businesses
FY
2011
2012
2013
2014
2015
70