2018 medium-term management plan (fiscal 2016 to 2018)...5 overall review of 2015 medium-term...
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© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
2018 Medium-term Management Plan (Fiscal 2016 to 2018)
April 25, 2016
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Contents 1. Review of 2015 Medium-term
Management Plan (Fiscal 2013 to 2015)
2. Long-term Strategy (10-year Strategy) 3. 2018 Medium-term Management Plan
(Fiscal 2016 to 2018)
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
1. Review of 2015 Medium-term Management Plan (Fiscal 2013 to 2015)
2. Long-term Strategy (10-year Strategy) 3. 2018Medium-term Management Plan
(Fiscal 2016 to 2018)
Contents
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
4
5,465
Operating margin (%)
Revenue (100 mil yen)
(Fiscal year)
Proportion of overseas sales (%)
50.6 53.6
58.3
5.6 5.5
9.7(Actual)
2015 Medium-term Management Results
2015
Medium-term Plan Actual
2014 Actual
2013 Actual*
Over 10% (Medium-term Plan)
6,000 5,267 70 4,938
Life Sciences, etc.
Energy storage devices
High functional materials
Automotive parts
73 96
3,156
1,211
827
2,950
1,165
727
3,068
1,269
1,058
*Fiscal 2013 Actual is Japan standard
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
5 Overall Review of 2015 Medium-term Management Plan
3. Revenue and operating margin not yet achieved
Internal factors Delay in development of new products due to duplication of research/development themes Lack of conceptual ability in commercialization of market needs Insufficient unearthing of new needs of customers
External factors
Delay in the launch of the storage battery market for new energy
Issues
Clarify the role of Research/Development Discover the true needs of clients Increase the accuracy of commercialization by strengthening the business design
1. Strengthen global business
2. Structural reforms of business (Implement policies for streamlining domestic personnel)
Expand overseas production and sales channels Benefit from overseas investments Undertake M&A
Increase the proportion of overseas sales and production
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Review of 2015 Medium-term Management Plan (Business)
High
functional m
aterials
Automotive
parts Energy storage
devices
Issues
Built a global production structure and benefited from overseas demand
Established new factories, increased capacity (China, North America, etc.)
Improved productivity of powder metal products
Released differentiated new products
Expanded overseas sales network
- Turned CSB Battery Co into a consolidated subsidiary
Accelerated overseas development of batteries for automobiles
Demonstration tests of renewable energy applications overseas
Delay in developing new products
Delay in establishing mass production of touch panel-related materials
Delay in market release of next generation product
Insufficient response to stagnant demand for industrial-use batteries in Japan
Liquidation of Hitachi Storage Battery (Dongguan) Co., Ltd.
(Regulations on production of lead storage batteries)
Results Reflection
Further acceleration of global development
Discovering market needs
Selection of R&D themes
Accelerate commercialization of market needs
Further generation of new customers and new products
Further strengthen global development
Opened open laboratory Strengthened the platform for the adhesive
business - Turned Taiwan First Li-Bond Co., Ltd.
Into a consolidated subsidiary Increased competitiveness of restructured
offices - Molding compounds/ Nitto Denko - Copper-clad laminates for printed wiring
boards/ Mica-Ava
6
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Contents 1. Review of 2015 Medium-term
Management Plan (Fiscal 2013 to 2015)
2. Long-term Strategy (10-year Strategy) 3. 2018 Medium-term Management Plan
(Fiscal 2016 to 2018)
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Hitachi Chemical Group Identity 8
Hitachi Chemical Vision
Mission
Values
Contribute to society through the development of superior technologies and products
Founding Spirit “Sincerity” “Harmony” “Pioneering
Spirit”
With a pioneering spirit to explore uncharted areas, we develop innovative solutions beyond the boundaries of chemistry, delivering “wonders” that exceed the expectations of customers and society.
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Basic policy to realize the vision 9
Maximize corporate value through collaboration
with stakeholders
Deepen research in realms beyond chemicals and strengthen our group’s sophisticated and broad-based
technology platform such as ‘Material Technologies’, ‘Process Technologies’ and ‘Evaluation Technologies
Innovate in all value chains for diverse markets and provide society with new value
Achieve sustained business growth by generating
adequate profits
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
10 Forecast Macro Environment 1
Electronics Environment/ Energy Automobiles/ Aircraft
Improve capacity for data processing
Progress in virtual communication
Reduce operations requiring staff
(IOT/Industry-4.0/M2M)
(Substitute for sophisticated analysis)
Strengthen environment and safety regulations
Expand emerging country markets
Develop electronic/ communications technologies
Change in consumer needs Increase in new participants
Rising resource nationalism Population increase and limited
resources Global warming and increased
environmental awareness Technological development
Sensor developments Multi-faceted sensors
(communication, GPS functions, etc.)
3D memory, increased prominence of new memory Packaging reforms
Semi-conductor/display value chain reforms
Progress in realignment of players Diversification of needs, shorter
lifespan for consumer products WW defacto standardization of base
descriptor and localization of consumer parts
Change in automobile structures Electricity driven Environment compatible and
lower fuel consumption Change in way automobiles are built Create modules Expansion of supply chain in
developing countries Technology innovations in aircraft Environment compatibility and
lower fuel consumption Increased cost competition
due to increase in participating companies
Increased prominence of unconventional fossil resources Shale gas revolution Methane hydrate development Realization of non/low carbon emission society Progress in CCS Establishment of hydrogen
energy society Increased popularity of
alternatives to fossil resources (Biorefinery)
Effective use of resources/ energy Establishment of next generation
electricity system Establishment of new generation
water circulation system
Environmental
Changes
Industry Trends
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
11 Forecast Macro Environment
Social infrastructure (Construction) Life Science Farming
Aging of existing infrastructure Increased environmental
awareness IT/ Communications Technology
Reforms Improvement in developing
country infrastructure Progress in urbanization
Sustainable construction in developed countries Super long-life for existing
infrastructure Low energy consumption for
construction
Increased construction in developing countries Infrastructure construction in
developing countries Increased building construction in
urban areas of developing countries
Increase in population and increased demand for food
Interest in food safety Technology innovation Sustained progress in farming
through government and international institutions
Progress in biotechnologies Progress in IT Reduction in government medical
costs Increase in medical demand in
developing countries Expiration of block buster patents
Further pursuit of scale and efficiencies Expansion of GMO Expansion of precision agriculture
Environment and safety initiatives Expansion of plant factory IPM: Expansion of integrated
pest management
Expand medical frontiers Expansion of biopharmaceuticals Expansion of regenerative
medicines Develop individualized medicine
Improve the quality of medical care Expansion of minimally invasive
medical care Expansion of remote diagnostic
services and treatment Stronger preventative medical
care
Expand scale of medical care Expansion of generics
Environmental
Changes
Industry Trends
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
12 Forecast Macro Environment
Social infrastructure (Construction) Life Science Farming
Aging of existing infrastructure Increased environmental
awareness IT/ Communications Technology
Reforms Improvement in developing
country infrastructure Progress in urbanization
Sustainable construction in developed countries Super long-life for existing
infrastructure Low energy consumption for
construction
Increased construction in developing countries Infrastructure construction in
developing countries Increased building construction in
urban areas of developing countries
Increase in population and increased demand for food
Interest in food safety Technology innovation Sustained progress in farming
through government and international institutions
Progress in biotechnologies Progress in IT Reduction in government medical
costs Increase in medical demand in
developing countries Expiration of block buster patents
Further pursuit of scale and efficiencies Expansion of GMO Expansion of precision agriculture
Environment and safety initiatives Expansion of plant factory IPM: Expansion of integrated
pest management
Expand medical frontiers Expansion of biopharmaceuticals Expansion of regenerative
medicines Develop individualized medicine
Improve the quality of medical care Expansion of minimally invasive
medical care Expansion of remote diagnostic
services and treatment Stronger preventative medical
care
Expand scale of medical care Expansion of generics
Environmental
Changes
Industry Trends
Acceleration Lighter No waste
High efficiency
Individualization Diversification Connected
Smart
Improve Quality of Life (QOL)
Realize Sustainable Environment
Industry R
equired Functions R
ealized Value
・・・・・
・・・・・ ・・・・・
Social infrastructure
Electronics Automobiles/ Aircraft
Environment/ Energy
Life Science Farming
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
13
Metal Forming
Technology
Printing & Coating
Materials Technology
Adhesive Materials
Technology
Energy Management Technology
Conductive/ Insulating Materials
Technology
Heat Resistant Materials
Technology
Photosensitive Materials
Technology
Transparent Resin
Materials Technology
Thermal Management Technology
Sliding Material
Technology
Various Core Technological Strengths
Material Technology that bring forth function
Process technologies to shape products
Evaluation technologies to translate needs
Core Competence
Integration Technology
Inorganic-Organic Composite Technology
Film Forming Technology
Energy Storage DevicesTechnology
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
・・・・・ ・・・・・ ・・・・・
・・・・・
14 Key Areas
Materials Parts/Devices System/Service
Farming
Automobiles/Aircraft Environment/Energy
Diversity of Core Technologies +
Business Design
Packaging materials Defacto standardization by
providing total solution
Automotive products Access to European
and American manufacturers
Energy storage systems
Globalization
Propose systems
High Functional Resins
Expand business area (Europe and America)
Expand line-up of advanced functional resins
CMP Slurry Anode Materials Life Science
Industry
Business Form
Key
Businesses
Hitachi Chemical
Electronics
Life Science
Social Infrastructure
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
15 Milestones for long-term growth
Storage battery systems
Life Sciences
Short-term (1-3 yrs) Medium-term (4 to 6 yrs) Long-term (6yrs +)
Strengthen business base
Packaging materials/ High functional resins
Fast product cycles, but areas that can generate short to medium-term
cash
Area that can grow as a base business through
business expansion from global developments
Areas to target for long-term span contributing to growth beyond 10 years
Preparation
Strengthen electronics packaging materials
Strengthen top share products
Automotive products Areas with many new business opportunities for materials that will
support stable growth for the next 10 years
Accelerate global development Strengthen revenue base
Accelerate global development Strengthen revenue base
Preparation
High functional products for new electronic devices (Next generation packaging materials such as 3D)
Genetic diagnosis regenerative medicine
Preparation
Lighter weight materials Adhesives
Heat management materials IoT related materials
Lead/ LiB (Hybrid) storage battery systems Energy management systems
Materials for new energy (hydrogen/ wind power)
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
16 16 Change how we compete, reflecting changes in business climate
Distinctive materials
Business climate
Value
Business style
Core competence
Japanese companies are market driver
Present Future
Business becoming borderless
Key is close ties with winner customers
Material technology that give rise to functionality
Process technology for producing finished products
Evaluation technology for translating needs
Diverse core technologies
Business conceptualization ability
Material properties/ process differentiation
Best product appeal
Erecting higher barriers to entry
Business model appeal
A global, multifaceted approach is essential
Solution functions
Ability to discern true needs Ability to design business
Wide array of core technologies +
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Growth Target - 10 Years Hence 17
A globally active innovator transcending the boundaries of chemistry, with advanced functional
materials as core and extending to devices, systems and services
A globally active innovator providing high value-added solutions unattainable by other companies,
demonstrating performance that will prevail in global competition
Growth Target
Operating margin 14%+
Where we want to be in ten years' time
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
18 Corporate Governance Initiatives
Declaring ‘Corporate Governance Guidelines’ as our initiative to put into practice a management that invests
in the interest of all stakeholders Basic principles
of corporate governance code
Details of initiative (Declared in the Corporate Governance Guidelines)
Securing shareholder rights and equality
Preparing an environment where shareholders can exercise their rights Effectively securing shareholder rights of minority shareholders and foreign shareholders,
with ample consideration given to securing equality and an environment for exercising rights
Appropriate collaboration with stakeholders
Undertake honest corporate management for all stakeholders Respect each and every employee’s character and individuality and promote a policy of
diversity
Secure appropriate disclosure and transparency
Appropriately disclose financial and non-financial information in accordance with legislation Voluntarily take initiatives to disseminate information, even if it is not mandated
Duties such as Board of Directors meeting
Adopt the structure of a ‘Company with Committees System such as Nominating Committee’ At least 2 or 1/3 of directors to be independent external directors
Dialog with shareholders Constructive dialog with shareholders
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Progress in ESG Management 19
To date Level of importance for stakeholders Level of importance in business operations
Disclose information in a timely and appropriate manner while taking into account the UN ‘Sustainable Development Goals (SDGs)’ and further enhancing the initiatives
Carbon management (Reduce Co2 emissions) Reduce water usage Reduce waste Promote sustainable engineering
Environment (E) Society (S) Promote diversity Promote Occupational Health and Safety Respect human rights Promote activities that contribute to local community
Promoting corporate activity that also responds to ESG issues to boost long-term corporate value
In future
Initiatives for ESG from both perspectives
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Contents 1. Review of 2015 Medium-term
Management Plan (Fiscal 2013 to 2015)
2. Long-term Strategy (10-year Strategy) 3. 2018 Medium-term Management Plan
(Fiscal 2016 to 2018)
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
2013 2014 2015 2016 2017 2018
Smartphone Note PC Tablet PC
LCD-TV Automobiles
2013 2014 2015 2016 2017 2018
Semi-conductor (wafer area) Display (device area)
Touch Panel (Quantity: Number of Sheets) Lithium ion Battry (Market Price)
Lead Battery (Market Price)
Market Trends
170
160
150
140
130
120
110
100
90
170
160
150
140
130
120
110
100
90
Final Products Parts and Devices
(6.7%)
(-1.9%)
(2.6%)
(0.7%)
(0.6%)
( )=CAGR 15-18
( )=CAGR 15-18
(5.0%)
(3.3%)
(6.7%)
(2.4%)
Based on production
volume
(3.3%)
21
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Source: Hitachi Chemical, based on research agency materials
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Basic policies for 2018 Medium-term Management Plan
2022-2024Medium-term Management Plan
Cultivate top share business by changing method of competition
Accelerate commercialization through open innovation
Build global management infrastructure Establish cost structure as a global business leader
2019-2021 Medium-term Management Plan
22
where w
e want
to be in ten years' tim
e
2018 Medium-term Management Plan
Strengthen global business
Strengthen management base
A globally active innovator transcending the boundaries of chemistry, with high functional materials as core and extending to devices, systems and services
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Key policy measures 1: Niche and Cluster Strategy 23
Expansion of global top share business through reforms to niche and cluster business structures
Business groups that can be implemented by sharing strategies for global success through grouping
Businesses that should be sustained even if small in scale due to high profitability and strategic intent
Cluster Niche
Consider withdrawing from non-core products and businesses for which a reinforcement strategies cannot be written
etc...
Business D
Cluster
Investment businesses Growth businesses
Mature businesses
Consider withdrawal from low profit business/ non-core business
Business for restructuring
Market grow
th potential (H
igh) (Low
)
Profitability (High) (Low)
Highly functional
PKG materials
Silver paste
Die attach film
Photosensitive material
Molding compounds
etc...
ACF
Package material cluster
Anode materials
CMP Slurry
etc...
adhesives
New polymers
hardeners
Varnish
High functional
resins cluster
Coating resin
Niche business
Business B
Business A
Business C
Cultivation/ Growth Structure
Grow
th/ expansion
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Key policy measures 2: Accelerate commercialization through open innovation 24
Marketing Business Design
Solution realization Commercialization
Venture companies
Markets Customer Competitors
Use of outside resources (M&A, technology licenses, business tie-ups, etc.)
Business divisions
Hitachi
Chem
ical
Research divisions
(Open Laboratory) *Packaging materials field *Touch panel field
Packaging Solution Center Touch Panel Evaluation Center
Innovation Center (established in FY16)
New Marketing through Collaborative
Creation Solution provision
Accelerate commercialization by “Collaborative Creation” using of outside resources
Development divisions
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
25
Utilize venture capital Dispatch technological research team to the US Seek out external resources and execute collaborative agreements
Clarify role of R&D, strengthen function
Enhance opportunities for innovation
To date In future
R Function
D Function
Development of fundamental technologies necessary for dynamic growth
Development of new products supporting expansion of existing businesses
Core Technology
Innovation Center
R&D Headquarters
Key policy measures 3: Boost capacity to create new products and new businesses
Strengthen R&D function, strengthen use of external resources
Research Laboratory
R&D Function
R&D Function
Existing business function
D function
Business sector
development
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Functional Materials Segment
Product Anisotropic Conductive Film (ACF) CMP Slurry Anode materials for
LiB
Strategy
Develop materials for new displays Utilize alliances, etc.
Advance and joint development with winning customers, and equipment manufacturers
Provide optimal solutions for artificial and natural graphite
Niche
Product Groups
Semiconductor packaging materials High functional resins
Strategy
Realize concepts through open laboratory Total solution plans and defacto standardization
Create development and production synergies through grouping Expand business globally through development of European and American customers
Cluster
In future (examples)
To date Targeted business expansion in respective areas for each product = All Product Niche Strategy
26
Basic policy: Strengthen key businesses through Niche & Cluster Strategies
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Functional Materials Segment: Semiconductor packaging materials cluster
Past relationships (Suppliers)
Material manufacturer Foundry
Post-process specialist
Fabless Equipment
manufacturer
Proposal Hitachi
Chemical
Supplier Tier 2 Tier 0 Tier 1
Concept design
Targeted relationships (Partners)
Tier 2 Tier 1
Proposal
Tier 0
Material manufacturer
Equipment manufacturer
Proposal Proposal
External Research Institute
Hitachi Chemical
Platform Consortium
Open Laboratory
Expand the business at faster than market growth rate by becoming a reliable partner
27
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Advanced Components and Systems Segment: Automotive Products
In future
To date
28
Basic policy: Strengthen base to become global top supplier
• Expanded overseas production structure in response to globalization of customers (Key regions are North America and China)
Expand overseas sales, development and manufacturing bases
• In addition to manufacturing plants, expand overseas development bases (Full-fledged entry into European markets)
• Accelerate the release of optimal products of local production for local consumption business
• Strengthen cost competitiveness through streamlining of production
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
29
Establish a world-class, differentiated product strategy
Sm
aller, lighter, low
fuel consumption,
electricity
Lighter Use resin for exterior panels, structural materials • Defacto standardization in global market
• Capture business
opportunities for next generation and the generation after that
Function to improve fuel consumption Parts for turbo, idling stop system, variable valve mechanism
Environmental regulations Copper free materials, electricity driven
Electricity driven Heat management materials
Product Name FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Resin exterior product
Turbo bushing
Copperless pad Copper free pad
Light weight
Environmentally friendly
Existing Product Mass production
Low fuel consumption
Development Newly deployed Complete development
Global development
Newly deployed
Release test product
Advanced Components and Systems Segment: Automotive Products
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
0
20
40
60
80
100
2015 2018 2025
Capture global demand by increasing offices ISS* ratio for new worldwide
car production Region Measures to increase share
To date In future
Japan Development of advanced function products
Build customer support structure and promote sales of ISS batteries for maintenance.
Acquire authorization for new light vehicles
Europe Market research Build new offices
ASEAN
Expand sales to customers receptive to Japanese companies
Enter into exclusive sales agreement with Malaysian company
Expand manufacturing bases
Promote sales for two-wheel vehicles
Automobile batteries
(Source: Hitachi Chemical)
(%)
Basic policy: Establish presence in global markets through increased scale
30
* Idling Stop System
Advanced Components and Systems Segment: Energy storage devices and systems
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
0
5,000
10,000
15,000
20,000
2015 2018 2025
Industrial batteries
Industrial batteriesの市場予測 (自社調べ)
(billion yen/year)
Renewable energy/ systems
UPS/ Communication Mobile
31
Use Type of storage battery
Key policies
To date In future
Renewable energy / systems
Lead LiB
Hybrid
Strengthen collaboration with system companies Provide solutions that combine four storage battery devices
Buildi up sales through demonstration test including demonstration in Europ Provide storage battery solutions
Mobile - Forklift - Harbor crane - Railway
Lead LiB
Build results for harbor crane and railway
(Expand domestic sales)
Build sales channels in ASEAN and Europe
UPS/ Communi-
cation Lead
Increase production and sales offices through consolidation of CSB
Strengthen synergy with CSB Battery
Forecast market for industrial batteries
(Source: Hitachi Chemical)
Bolster capturing of demand in growth areas
Advanced Components and Systems Segment: Energy storage devices and systems
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Basic policy: Cultivate future foundation business based on materials technology and diagnostic medicine business
Strengthen foundation of diagnostic medicine business
New entry into genetic diagnosis and regenerative medicine
Enhance management resources through M&A (including product groups, sales channels)
Promote clinical trials of genetic diagnosis technology using liquid biopsy*
Advanced Components and Systems Segment: Life Sciences
Start cell culture subcontracting business for industrial-use mass culture
* Technology that diagnoses illness from body fluids such as blood instead of taking a patient’s tissue
32
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Market size
Genetic diagnosis 2020: 1 trillion yen 2050: 15 trillion yen (Forecast market for global regenerative medicine related
industries) Compiled by the Ministry of Economy, Trade and Industry
Regenerative medicine
*1 The genetics that are the blueprint for the protein that makes up the human body *2 Circulating Tumor Cell
Use our company’s technology Use our company’s materials technology for cultivation materials
Strengths
-Wiring board technology (CTC examination equipment)
Hitachi Group companies already have presence in the field; synergy effects from collaborations
-R&D Technology (mRNA analysis)
Subcontracting manufacture of cell cultivation
mRNA*1 Diagnosis Forecast effectiveness of cancer
treatment in advance
Business
description
Circulating Tumor Cells (CTC*2) Diagnosis Monitor the effectiveness of treatment
Manufacture of cultivation materials (culture medium, reagents, vessels)
33
Little burden on patients, and a market that is expected to grow
The next 4 to 6 years is a period for preparation
2015: About 730 billion yen To 2018: CAGR 7%+
(Forecast market for genetic diagnosis) Source: Hitachi Chemical
Advanced Components and Systems Segment: Life Sciences
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
41%46%
42%
29%16%
21%
FY2013~2015 FY2016~2018
For industry: Strengthen production capacity such as UPS (ASEAN, Asia, Japan)
For automobiles: Increase production capacity for ISS
34 Investment Strategy
Basic policy: Proactive investment in M & A and growth areas
Life Sciences, etc.
Energy storage devices
Automotive products
High functional materials
Strengthen production capacity through increase in overseas demand
Expand open laboratory Increase and rationalize production of core
business Develop and mass-produce new large-scale
products
M&A: Also consider large transactions in the order of 100 billion yen to achieve dynamic growth Fixed business investment: Invest in growth areas as
much as 1.5 times the previous Medium-term Plan 4%
59%
54% 1%
Advanced components and systems
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
Accelerate the launch of new products and new businesses
Expand global business
Measures for low profit products and non-core businesses
Production through robotics, etc. (minimal staffing)
Reform ways of working Global standardization of indirect
operations Accelerate outsourcing of non-core
operations and shift towards IT
35
Build global management infrastructure
Establish a cost structure as a global leader
Utilize diverse human resources Design a global human resources policy Design an organizational structure for the development of a
global business
Strengthening of Management Base
Business structural improvement policies Operations structural improvement policies
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
2018 Medium-term Management Plan Goals
ROIC
ROE
FY2015
Operating margin
2015 FY2018
Advanced functional materials Automotive products Energy storage devices
CO2 emissions*1
Proportion of female managers*3
Sales revenue
36
*1 Per unit of net sales base. Companies in the calculation: Major domestic manufacturing plants (including group companies) *2 Calculated using FY2014 Results *3 Stand alone base
(c.f., FY2012) (c.f., FY2014)
(FY20122015) (FY20152018)
9.7% 11%
12% 10.9%
27%
10%
10%
29.0%
6.7%
8.4%
12% 10.4%
15% 12.7%
CAGR 5.6% CAGR 7~8%
96% 106%※2
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
75 75
104 xxx
2013 2014 2015 2006[Planned]
36 36
50 50
Dividends 37
Total Dividend (100 million yen)
(Fiscal year)
Continue to pay out stable dividend targeting a dividend payout ratio of about 30%
104
Dividend (yen) per share
© Hitachi Chemical Co., Ltd. 2016. All rights reserved.
These materials contain projections based on information available at the time of formulation. Various factors may cause actual results in the future to differ. These materials may not be freely copied or redistributed without prior permission.