New Medium-Term Management Plan 2020.10€¦ · 2020-10-14 · New large-scale businesses Biodegradable polymer PHBH 26 Develop products with brand holders Seven & i Holdings Co.,

ⓒ2020 Kaneka Group All rights reserved.

N e w M e d i u m - T e r m M a n a g e m e n t P l a n 2020.10.5


P a t h t o B e c o m e a P a r a d i g m C h a n g e r F r o m W i t h i n

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ⓒ2020 Kaneka Group All rights reserved. 1


Awareness of the Times－Toward a World with New Values

Coronavirus shock

Transformation to “New Style Work”

Old Style Work

With VirusToward a World with New Values


Awareness of the Times－Paradigm Shift Beyond Our Imagination

Pandemic countermeasures

Environmental issues Declining birthrate

and aging population

From centralizationto decentralization



Growth Fields in the “With Virus” Era

5

Higher value of health and security

Innovative growth fieldsHealthcare・Electronics

Advanced medical technologyDigital transformation (DX)


Management Vision－Advance to ESG Management

6Earthology Chemical Solution

Material SU Quality of Life SU

Active Human Life Solution

Nutrition SU Health Care SU

Three domains addressed by Kaneka’s businesses

Environment/energy

Food

Wellness

Kaneka’s ESG

Contribute to the advancement of life and the environment of people

worldwide through chemistry


TCFD

7

×

Production Back office SCM

Smart Work Realization Work Culture Innovation

Accelerate business portfolio transformation

DX-related investment of ¥15 billion over the next 5 years

R&B innovationDramatic improvement in productivity,

including introduction of MI/AI

Digitalization of market andcustomer interfaces

Create new customer value

⚫ Visualize management information, raise the sophistication of business management, automate and optimize operations

Operational innovationRaise operating efficiency and shift to creative work

Creation of new valueCreation of new products and new businesses

Climate change working group

Governance

Initiatives in line with recommended disclosures

StrategyRisk

management

Indicators and targets

TCFD Initiatives/Promotion of DX and Work Culture Innovation

DX



Roadmap to a Recovery in Business Performance

9

20194Q

20201Q

20202Q

20203Q

20204Q

20211Q

20212Q

20213Q

20214Q

Before the coronavirus

Coronavirus shock

With virus

Bottom

Gradual recovery

Full-scale recovery


Growth Strategy (Priority Businesses)

10

Leading-edge businesses

Foundation businesses

New large-scale businesses

E & I: Materials for 5G applications

Pharma: Expand the capacity of KEGT to address infections

Biodegradable Polymer (PHBH)

Keys to growth

A strong platform supporting the management base

Core drivers of business performance

Medical: Build additional facilities at the Vietnam plant

OLED

Highly unique, high-value-added products


601.5

560.0

700.0

Net

sales

Net

sales

Net

sales

26.0

21.0

53.0

Operating

income

Operating

income

Operating

income

11

Growth Strategy (Performance Targets)

FY2019（Reslts）

FY2020（Forecast）

FY2022（Forecast）

（JPY Billion）

25%

75%

FY2019

50%50% FY2022

Operating income

Foundation businesses（Core）

Leading-edge+New large-scale businesses

Foundation businesses… Vinyls and Chlor-Alkali, Performance Polymers, Foam & Residential Techs, Performance Fibers, FoodsLeading-edge businesses… E & I Technology, Pharma, Medical, Supplemental Nutrition, Agris, PV & Energy managementNew large-scale businesses…Biodegradable Polymer (PHBH), Organic EL Lighting, Opto-Electrochem, Regenerative medicine and cell therapy


Investment plan

12

Material Nutrition• New facilities for

epoxy masterbatch

Quality of Life

Major investment projects (including M&As)

2017-2019 (Results) : ¥142 billion

2020-2022 (Forecast) : ¥200 billion

• Construction of a new lactic acid bacteria and dairy product plant

• Commercial production facilities for Kaneka Biodegradable Polymer (PHBH)

Health Care

• Increase polyolefin foam capacity• Build additional polyimide film and

optical film facilities• Increase PV heterojunction cell

capacity

Expand biopharmaceuticals capacity at Kaneka Eurogentec S.A. (KEGT)

Expand API capacity Expand capacity for blood purification

systems and Intervention Gene therapy and regenerative medicine

and cell therapy

New Business


4.7%4.7%

4.9%

4.6%

4.5%

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

4.2%

4.4%

4.6%

4.8%

5.0%

02017

（Results）

2018

（Results）

2019

（Results）

2020

（Forecast）

2022

（Forecast）

28.029.0 29.4

26.0

31.5

Leading-edge + New large-scale businesses

Foundation businesses（JPY Billion）

R&B expenses (ratio of R&B expenses to net sales)

R&B Strategy (Selection and Concentration for Resource Allocation and Key Themes)

13

Environment/energy

Food production

support Wellness

Telecommunications

Opto-electrochemicals

Optical acrylic

Polyimide

Graphite sheets

Surfactin

Biologics

Functional foods

Regenerative medicine

and cell therapy

Separate into stages and

allocate resources to key themes

Food production

support

Genome editing

Biodegradable polymer

Heterojunction solar cells

Heat-resistant

composite materials

OLED

Business development

Basic development



Foods

Lineup of Biotechnology-Related Businesses

15

Biotechnology Fermentation

Yeast

Pharma

BiopharmaceuticalsーPCR reagentsーCOVID-19 vaccine intermediates

Small molecule pharmaceuticalsーActive pharmaceutical ingredients

(APIs) for Avigan® Tablet

PHBH

Medical

Agricultural production support

Genome editing

Regenerative medicine and cell therapy

Testing and diagnostics

Supplements

Lactic acid bacteria

Kaneka Ubiquinol

(reduced form of coenzyme Q10)

Yoghurt

Fermented butter


Pharma－Biopharmaceuticals CDMO Business: Basic Strategy

16

Plasmid DNA

Protein

●Advanced analysis technologies

Improve plasmid DNA productivity

Upgrade and expand new products and develop clustersPlasmid DNA, mRNA

Expand business in the gene therapy field

Expand share of protein drugs

Develop innovative manufacturing methods for protein drugs

Kaneka Eurogentec S.A.

Microbial CDMO business

Process developmentCRO (contract research)


COVID-19 Vaccine and Therapeutics Projects at KEGT

17

Product typeCustomer

name Order status

DNA vaccine Company A • Received

DNA vaccine AnGes, Inc. (Japan)

• Received

Protein vaccine Company B • Received

Material for mRNA vaccine Company C • Received

mRNA therapeutics Company D • Received

mRNA vaccine Company E • Under discussion

DNA vaccine Company F • Under discussion

DNA vaccine Company G • Under discussion


Infection Initiative Team

Initiatives to Address the COVID-19 Issue

Small molecule pharmaceutical domain

APIs for Avigan® Tablet

Biopharmaceutical domain

Antibody drugs

DNA vaccinemRNA vaccinemRNA therapeutics PCR test reagents

Medical

Testing and diagnosticsBlood purification technology


Medical－Business Expansion

19

New coil for embolization of brain

aneurysms (i-ED Coil™)

New blood purification system

Coronary FFR wire

Intervention andblood purification domain

New products

Increase medical catheter production capacity

in Vietnam

Strengthen the gastrointestinal and

electrophysiology businesses

Provide breast reconstruction treatment using Cultured CAL™ at Cellport Clinic Yokohama

●Future initiatives ①Cell processing business ②Technical support for Cultured CAL™

Make regenerative medicine and cell therapy more prevalent in society (Cultured CAL™)


Supplement—Mitochondria and Intestinal Health Are Crucial to the Strength to Live

Mitochondria and intestines

Lactic acid bacteriaImprove the intestinal

environment, which is closely tied to the health of the entire

body

Kaneka Ubiquinol (reduced form of coenzyme Q10)

An essential substance for energy production while protecting mitochondria

from activated oxygen

Health

20

⇒Increase immunity

Symptomsrelated tomitochondria

-Heart disease

-Fatigue

-Stress

-Sleep disorders

-Immunity disorders

-Frailty and others

Nervous system

Brain

Heart

Intestine

Cells

Symptomsrelated to

the intestinalenvironment

-Bowel movements

-Abdominal discomfort

-Depression

-Stress

- Immunity disorders

-Allergiesand others

Nervous system

Endocrine system hormones

Precursors of brain

substances

Beneficial bacteria(lactic acid bacteria)

Brain-gut interaction

Mitochondria

Energy(ATP)

Active oxygen

Cells, proteins, cell membranes, lipids, etc.

OxygenOxygen

Kaneka Ubiquinol

Kaneka Ubiquinol

Kaneka Ubiquinol

Kaneka Ubiquinol


Lactic Acid Bacteria to Improve Health and Quality of Life (AB-Biotics S.A.)

21

Possesses more than 550 original bacteria strains

Examples of bacteria strains owned by AB-Biotics

Lactic acid bacteria products with clear effects

Commenced sales on Amazon in the US

Increase market recognition

Domestic sales of lactic acid bacteria productsfor infants

Selling products that mitigate baby colic to nutritional supplement manufacturers

Examples of bacteria strains owned by AB-Biotics


Expansion of the PV Business

22

Existing domains

Develop business centered on rooftop residential photovoltaic products

New domains

Building integrated photovoltaics (BIPV)

In-vehicle photovoltaic module

Hetero-junction technology

Back contact

See-through photovoltaic cells

Bi-facial light receiving structure

Highly efficient see-through photovoltaic modules adopted for use in the Japan

National Stadium

Image courtesy of Taisei Corporation

Adopted in the Toyota e-Palette (in roof panel)

Image courtesy of Toyota Motor Corporation


23

Vinyls and Chlor-AlkaliExpand markets through technological innovation in chlorinated PVC and paste PVC

Performance Polymers(MOD)Develop new products and applications such as non-PVC applications

Expand epoxy masterbatch at the earliest opportunity

Performance Polymers(MS)Expand sales in the Chinese and Asian markets

Drive the global business expansion of CEMEDINE Co., Ltd.


23


24


24

Foam & Residential TechsProvide new lightweight, heat-insulating expandable plastics solutions

Performance FibersStrengthen the business platform in Africa

Develop new markets

24

Foods & AgrisTransform the value chain leveraging digital technologies

An innovative business model that integrates operations from dairy farming to distribution

Next-generation plant breeding technology and agricultural biomaterials

E-commerce


Promote Recycling-Oriented Organic Dairy Farmers

25

●Recycling-oriented dairy initiatives

Considerate of dairy cattle

Considerate of people

Considerate of the environment

Betsukai Milk World Co., Ltd.

New company:Betsukai Wellness Farm Co., Ltd.

(Established: June 2020)

Manufacturing and sale of organic dairy products

by the Kaneka Group

・Organic yoghurt

・Organic milk

・Organic butter


New large-scale businessesBiodegradable polymer PHBH

26

Develop products with brand holders

Seven & i Holdings Co., Ltd.

Shiseido Company, Limited

Seven Café straws

Palette's case, "AquaGel Lip Palette"

～2020 ～2025 ～2030

Plant with capacity of 5,000 tons per year

100,000 to 200,000 tons per year

Launch of commercial plant20,000 to 50,000 tons per year

5,000 tonsper year


Agricultural Production Support: Accelerate Crop Breeding Based on Genome Editing

Meristems

Genome editing tool

GermlineGerminating seed

High-precision genemodification

Facilities

TechnologiesNetworks Human resources

Integration

Japan Tobacco Inc.’s business assets related to plant biotechnology

Kaneka’s unique plant breeding technology:iPB method

Useful cultivarsApply to major crops

・Dramatically accelerate crop breeding・Tissue culture process is no longer necessary・Advanced application to genome editing

27

Documents

New Medium-Term Management Plan 2020.10€¦ · 2020-10-14 · New large-scale businesses Biodegradable polymer PHBH 26 Develop products with brand holders Seven & i Holdings Co.,