Mid-Term Plan MG20R - Maxell Growth 20 Revised · Mid-Term Plan MG20R - Maxell Growth 20 Revised -...
Transcript of Mid-Term Plan MG20R - Maxell Growth 20 Revised · Mid-Term Plan MG20R - Maxell Growth 20 Revised -...
©All Rights Reserved, Copyright 2019 Maxell Holdings, Ltd. 1
Mid-Term Plan MG20R- Maxell Growth 20 Revised -
Maxell Holdings, Ltd.President and Representative Director
Yoshiharu Katsuta
Maxell Holdings, Ltd. DirectorMaxell, Ltd.President and Representative Director
Keiji Nakamura
2019/5/31
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Table of Contents
1. Purpose of Today’s Business Briefing
2. MG20R Overview
3. Business Portfolio and MBP Overview
4. Main Products by Division
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Purpose of Today’s Business Briefing
Maximize the corporate value by
promoting business strategy and capital policy altogether
Pursue
an optimal capital structure
Enhance
profitability
Business strategy Capital policy
Maximize the
corporate value
✓ Realize synergy effects of MBPs (1)
– Already invested 34 billion yen
into 5 projects
✓ Business portfolio strategy
– Introduction of ROIC(2)
– Selection and concentration
✓ Address the unprofitable businesses
✓ Decrease equity
– Enhance shareholder returns
✓ Increase financial leverage
– Based on the disciplined fiscal
policy
Today’s
ExplanationExplained on April 26
(1) MBP:Maxell Business Platform
Structure of create strong business with sharing business resources each other based on “co-creation and co-prosperity”
(2) ROIC : Return On Invested Capital
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Table of Contents
1. Purpose of Today’s Business Briefing
2. MG20R Overview
3. Business Portfolio and MBP Overview
4. Main Products by Division
Maxell Holdings, Ltd. DirectorMaxell, Ltd.President and Representative Director
Keiji Nakamura
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2. MG20R Overview
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Revision of Targets of MG20
Downwardly revised the targets as of FY2020; operating income to 10 billion yen and ROE to 6.0% or above
Original TargetsMG20
Revised TargetsMG20R
Difference
Net Sales(billion yen)
200 173 (27)
Operating Income(billion yen)
15 10 (5)
Operating Margin % 7.5% 5.8% (1.7%)
ROE 8.0% or above 6.0% or above (2.0%)
✓ Revised the targets taking current business environment into consideration
✓ Keep trying to achieve the original targets early years in the next mid-term (FY2021-2023)
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Operating Income Change (FY18 -> FY2020)
Operating IncomeFY2018
Operating IncomeFY2020
Energy±05.4
10
Industrial Materials
+2.6
Electronic Appliances and Consumer Products
+2.0
Advance cost for FY19
(2.5)
Accrued advance cost in FY19Achieved operating income of 10 billion FY20
・Launch Maxell brand projector・Launch Brands of beauty care product・R&D of new products
Advance Cost for FY2019 (2.5)
Advance cost contribute to the expansion of operating income in Industrial Materials segment, and Electronic Appliances and Consumer Products segment
No advance cost for FY20+2.5
✓ Adhesive tape✓ Electric parts/materials✓ In-car camera lens✓ LED headlamp lens
✓ Beauty care products
✓ Projector
(Unit: JPY billion)
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3. Business Portfolio and MBP Overview
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Strategy of Business Portfolio
Horizontal development of “strength”
Vert
ical develo
pm
ent
of
“str
ength
”
Introduction of ROIC
ROE improvement
Promotion of “Replacing Old with New“ throughSelection and Concentration
Pursuing growth potential
Maximizing “Business Strength”Maximizing
“Corporate Value”
+Existing
Technology and Sales
Force
Expansion of
technologies
Expansion of sales channels
Maximize corporate value by promoting business portfolio strategies
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Business Portfolio Strategy (1) Energy
Specialty Business
Vehicle Energy Japan*
MBP (Energy Segment)
Horizontal Development of “Strength” (Channel Expansion)
Vert
ical develo
pm
ent
of “s
trength
”(T
echnolo
gy E
xpansi
on)
Micro battery Expansion as growth driver
*Vehicle Energy Japan is not a consolidated subsidiary
【Existing Business Area】
Shift to automobile
ShrinkLithium-ion battery for consumer use
Technology expansion
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Business Portfolio Strategy (2) Industrial Materials
In-car camera lensLED headlamp lens
Electric components
Functional film
Ube Maxell Kyoto
KurehaElastomer
Expansion in ADAS,electrification market
Expansion of EF2*
Expansion in semiconductor and construction market
Marketexpansion with new
technology
MBP (Industrial Material Segment) *EF2:Electro Fine Forming technology
Horizontal Development of “Strength” (Channel Expansion)
Vert
ical develo
pm
ent
of “s
trength
”(T
echnolo
gy E
xpansi
on)
【Existing Business Area】
Technology Expansion
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Business Portfolio Strategy (3) Electronic Appliances andConsumer Products
Projector
Beauty care productsConsumer products
Launch Maxell brand
✓ SSL*1 Projector✓ Visual System✓ In-car Device (HUD*2)
Business integrationLineup expansion
MBP (Electronic Appliances and Consumer Products Segment)
Tech
nolo
gy
exp
an
sio
n
Launch Maxell brand
Maxell Izumi
*1 SSL: Solid State Lighting*2 HUD: Head Up Display
Horizontal Development of “Strength” (Channel Expansion)
Vert
ical develo
pm
ent
of “s
trength
”(T
echnolo
gy E
xpansi
on)
【Existing Business Area】
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Purpose of MBP and Timing of contribution to Earnings
*Vehicle Energy Japan is not a consolidated subsidiary
-Expand area of battery related business-Propose new battery solution
MG20R period FY21-23 periodMBP result in FY2018
- Develop multi-cell LIB packs- Develop distribution of electrode applied products
-Expansion to industrial and automotive applications-Globalization of electrode applied products
- Integrate Health and beauty
care product business
- Develop hydraulic tools with
new concepts
- Expansion of market
share of health and beauty
care product and hydraulic
tools
- Increase production
capacity
- Strengthen development
of cutting edge technology
Business expansion corresponding to market demand increase
- Strengthen development of
new product
- Implement new investment
Expansion of business:
- Construction rubber
materials for overseas
- Electromagnetic wave
absorber
Specialty BusinessChargers, Battery Pack,
Electrode applied products
-Synergy of integrate health and beauty care product businesses-Strengthen and expand Hydraulic tools business
Maxell IzumiElectric home appliances
and hydraulic tools
-Strengthen coated separator business
-Increase production capacity to meet
EV market expansion
Ube Maxell Kyoto
Coated Separator
-Expand rubber material business relating to construction-Enter highly functional materials market for automotive
Kureha Elastomer
Industrial rubber
Already invested 34bn yen in FY18 out of 40bn yen in MG20 period for growth
- Vertical start of production
of LIB for HEV
- Achieve sales over 60 bn
yen
-Enhance and expand LIB
business for HEV
-Establish new pillar of business
Vehicle Energy Japan*
Automotive LIB
Establish integrated management structure,realize mid-long term synergy
Sales:Approx. 35 bnOPM: over 5% OPM: over 10%
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Business Portfolio
Energy✓Expand micro battery as growth driver, shift of LIB from consumer to automobile.Industrial Materials
✓Expand automobile related business and mask for organic EL panels as growth driver.Electronic Appliances and Consumer Products✓Enhance focus on profitability and achieve high cash flow margin with less investment
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Disciplined Financial Management
Introduce ROIC✓ Start activity throughout all the division in FY2019
Strengthen PIPJ activity✓ Control costs by model for more than 8,000 models.
Classification Division Products By Item
Fiscal Discipline
ROIC ABC-XYZ PIPJ※※P/L Improvement by Model
Project
KPI
Return On Invested Capital
・Sales Growth ratio・Net Sales - SG&A Expenses ratio・Net Sales - R & D Expenses ratio・Net Sales - Cost ratio・Working Capital turnover・Fixed Assets turnover
50/20/50 Concept・Growth Rate・Sales・Operating Margin・Products Category Number・Market/Competitor・NPV
Operating Income・Amount of profit by model・Number of profitable models・Deficits amount by model・Number of unprofitable models
Effect
Enhance corporate value and ROE
・Maximize profit・Clarify source of profitability・Optimizing invested capital
Judgement ofinvestment/withdrawal
・Strengthen growth business・Create competitive product
groups・Visualize unprofitable business・Accelerate implementation
Deficit cutting・Get rid of unprofitable models・Increase profitable models・Strengthen cost planning
- Achieve target of Operating Income
- Establish Business Portfolio
focusing on profitability
Establish proactive business management method
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4. Main Products by Division
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Division Segment Main ProductsSales
FY2018 FY2020 vs FY2018
EnergyEnergy
Consumer LIB Over 14.0 bn Over 6.0 bn (60%)
CLB Several Hundred mn Approx. 1.0 bn double
Heat-Resistant CR Batteries Approx. 7.0 bn Approx. 8.0 bn +10%
Cylindrical CR Battery Over 4.0 bn Approx. 5.0 bn +20%
Sub Total Approx. 38.0 bn Approx. 35.0 bn (10%)
SliontecIndustrial Materials
Adhesive Tapes Approx. 18.0 bn Under 20.0 bn +10%
Film Products (incl. Kureha Elastomer)*1 Mid. 1.0 bn Mid. 7.0 bn 4 times
Sub Total Under 21.0 bn Over 29.0 bn +40%
Optronics
Industrial MaterialsIn-car camera lens Under 4.0 bn Over 5.0 bn +40%
LED Headlamp lens, molding product, etc. Approx. 8.0 bn Mid 9.0 bn +20%
Electronics/Consumer
Projector Approx. 27.0 bn Under 26.0 bn flat
Automotive business (HUD) - Over 1.0 bn -
Imaging business - Mid. 1.0 bn -
Sub Total Approx. 53.0 bn Under 57.0 bn +10%
Life Solution
Industrial MaterialsEF2 Approx. 2.0 bn Approx. 3.0 bn +50%
Card (incl. E-passport) Approx. 1.0 bn Over 1.0 bn +10%
Electronics/Consumer
Health & Beauty care(Incl. Maxell Izumi) Approx. 12.0 bn Under 17.0 bn +40%
Skin diagnosis camera - Several Hundred mn -
Hydraulic tools*2 Mid. 2.0 bn Mid. 5.0 bn double
Sub Total Mid. 35.0 bn Approx. 40.0 bn +10%
Others Industrial Materials, etc Coated Separator, etc *3 Under 3.0 bn Over 12.0 bn 4 times
150.6 bn 173.0 bn +15%
Energy 38.3 bn 35.1 bn (8%)
Industrial Materials 52.4 bn 74.1 bn +41%
Electronics/Consumer 59.9 bn 63.8 bn +7%
Main Products by Division
*For more detail of these main products,please refer to presentation of each division.
*1 Kureha Elastomer has contributed to FY2018 sales since Jan-19. (3 months)*2 Hydraulic tools has contributed to FY2018 sales since Oct-18. (6 months)*3 Coated Separator has contributed to FY2018 sales since Jan-19. (3 months)
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Notes about statements about the future
Parts of this document contain predictions about the future that are based on our current expectations and beliefs.These statements are provided as background material
for investors.We cannot ensure or guarantee that any such statement will prove to be correct.Please keep in mind that actual outcomes might differ
from anticipated results.