medium-term management plan fy2020 -2022 - noritsu€¦ · copyright (c) 2019 noritsu koki co.,...
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Copyright (C) 2019 NORITSU KOKI Co., Ltd. All Rights Reserved.
March 20, 2019
Noritsu Koki Co., Ltd.Stock code: 7744
(First Section of Tokyo Stock Exchange)
Medium-Term Management Plan FY2020-2022 (from the fiscal year ending March 2020 to the fiscal year ending March 2022)
Copyright (C) 2019 NORITSU KOKI Co., Ltd. All Rights Reserved. 2
Contents
1 Position of the Plan
2 Business Policy
3 Appendix
Copyright (C) 2019 NORITSU KOKI Co., Ltd. All Rights Reserved. 3
Position of the Medium-Term Management Plan
Up to March 2019 April 2019 to March 2022 April 2022 onwards
The plan is designed to complete preparations for the next leap forward, assuming continued stable growth.
Moving out of founding business and adopting a
business segment structure
Strengthen business opportunity creation and
earning/organization capabilities while
maintaining stable growth
To the next stage
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Noritsu Kokiʼs Journey
Foundation to 2000 2000 to 2009 2010 to 2018
Founded in 1951 as a photographic processing equipment manufacturer. Subsequently, the business was transformed through M&As as the times changed.
Imaging business (original business)
2016/2 Business transfer
Founding period
Post peak earnings ebbDevelopment into
a global industry leader
Transition to the holding company system, active investment in growth fieldsBusiness portfolio reorganization
(Rebuild multiple businesses within Group)
Senior and Lifestyle
Drug Discovery
ManufacturingSecond founding period
Agriculture and Foods
Second founding period
Market change through
digitalization
Business conversion
Healthcare
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Noritsu Kokiʼs Business Structure
Noritsu Koki Group
Manufacturing Business
Healthcare Business
Senior and Lifestyle Business
Drug Discovery BusinessAgriculture and Foods BusinessOther Business
■ Manufacturing TEIBOWsoliton
■ Medical TechJMDCDoctor-NETUNIKE Software Research
■ Testing/DistributionNK MedicoGeneTechFEED CORPORATIONNS PARTNERS
■ Senior Mail OrderHALMEKZenkokutsuhan■ InsuranceHealth Age SAST InsuranceNihon Kyosai
Core Businesses
Japan Regenerative MedicineNK AgriKIRARITO DT Lab
Growth investment
funds
Achieve profitability
Developing/Investment Businesses
We are constantly creating new business domains through portfolio management.
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Noritsu Kokiʼs StrengthsWe use our strength in Group management to accelerate the growth cycle of each business.
Decision-making speed (management team)
Multiple businesses targeting unique and
unparalleled position in niche fields
Successful DNA in the imaging business and turnaround experience
Active investment in growth fields
M&A experience value
Financial soundness
Five strengths of Noritsu Koki
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Contents
1 Overview of the Plan
2 Business Policy
3 Appendix
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Vision for the Company
Prosperity for society and people
Understand the needs of the age and think one step aheadPursue products and services that enrich livesRespect the potential for growth and innovation and support a spirit of challenge
Mission
Vision
Value
A corporate group that continues producing “No. 1/Only 1” businesses
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Prospects for Each Business Segment
Manufacturing
Discovery and application of technology and value chain reform drive market expansion, new market development, and innovation
Segment (Main Group Company) Social Issues/Significance Prospects
Medical Tech ・ ¥100 trillion market
・ Response to ballooning medical costs・ Shortage of medical professionals・ Contribution to healthy society・ Aging society with low birthrate・ Advances in preventative and
presymptomatic technologies
Lead the market as one of Japanʼs largest health data holding companies
Senior and Lifestyle
・ Extending healthy longevity, particularly for seniors
・ Era of 100-year life span・ Reduction in pensions
Lifestyle proposals and enhancementsEnsure safety and security for all people
Drug Discovery ・ Advance of biotechnology・ Efforts to reduce fatal risks such as cancer・ Rising cost of medical fees and drug prices
Move toward realization of regenerative medicines such as stem cell therapies to expand the market
TEIBOWsoliton
Japan Regenerative Medicine
Testing/ Distribution
Realize new healthcare society with preventative medicine and distribution revolution, etc.
・ Japanʼs finest manufacturing technologies・ Global development of SMEs and regional
start-ups・ Technology succession
JMDCDoctor-NETUNIKE Software Research
NK MedicoGeneTechFEED CORPORATIONNS PARTNERS
HALMEKZenkokutsuhanHealth Age SAST InsuranceNihon Kyosai
Healthcare
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Business Policy
Key Strategy 1
Key Strategy 2
Increase core business earning capability, continue growth
Appropriate investment in development and growth field (create and expand)
Key Strategy 3Create synergies with reorganization of Group management system(Financial soundness, strengthen Group management structure, DX*, IR/PR)
*DX = Digital transformation strategy
A corporate group that constantly produces unique and unparalleled products
Vision
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Key Strategy 1
Key Strategy 1Increase core business earning capability, continue growth
(Promote shift to unique and unparalleled businesses) increase share/earning capability, create high-quality cash flow
Expand services, increase share, and aim to be category leader
Use proprietary assets to create inter-company synergies (new businesses and services)
Manufacturing Medical Tech DistributionSenior and Lifestyle
TEIBOWsoliton
JMDCDoctor-NET
UNIKEFEED CORPORATION
NS PARTNERS
HALMEKZenkokutsuhan
Health Age SAST Insurance
Nihon Kyosai
Healthcare
Use advanced position to increase business quality and expand earnings (lead the market)
Testing
NK MedicoGeneTech
Core Businesses
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Key Strategy 1-Noritsu Groupʼs Growth Scenario
No. 1 in Japan No. 1 globally
Earning capability
Japan Regenerative
Medicine
KIRARITO
NK Agri
Health Age SAST
Insurance
TEIBOWsoliton
GeneTech
JMDCDoctor-NET
UNIKE
NS PARTNERS
Nihon Kyosai
FEED CORPORATION
HALMEKZenkokutsuhan
NK Medico
Lead markets
Build uniqueness
Strengthen uniqueness
Create unparalleled propriety businesses and services, and be the lead runner (or creator) of markets.
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Key Strategy 2
• Continue investing in developing businesses such as Japanese regenerative medicine
• Actively invest in growth fields
Key Strategy 2 Appropriate investment in development and growth field (create and expand)
Business creation within the Group
Business expansion through M&A
• Investments based on knowledge(Also consider global expansion)
• M&As to strengthen existing businesses
• M&As in growth fields
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Key Strategy 3
Key Strategy 3Create synergies with reorganization of Group management system
Increase management capability in businesses across multiple fields, strengthen corporate functions, and create added value for the entire Group
(1) Financial soundness・Control leverage with net debt/EBITDA < 4.0 as a guideline
(2) Strengthen Group management structure to realize vision・Build a structure to enhance execution capability and speed・Recruit diverse human resources and promote growth of the next generation
(3) Digital transformation・Increase added value of businesses・Expand DX expertise throughout the Group
(4) Strengthen corporate communication (IR/PR)・Strengthen dissemination of information to bolster recognition of the Noritsu Koki brand
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Key Strategy 3-(2) Supplement
Nomination and Compensation Advisory Committee
Business Group companies
Executive officers responsible for Group businesses
Executive officers responsible for corporate functions
Representative Director and President
Management Committee
Audit & Supervisory Committee
Board of Directors
Strengthen Group management structure to realize vision
• Introduce executive officer system to manage Group business and corporate functions
• Share/use proprietary information held by Group companies• Create places to produce human resources to support Group management
Information Human resources
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Key performance indicator
Key performance indicator: Operating EBITDA*(IFRS)
*Operating EBITDA Net operating profit** + depreciation and amortization (similar to EBITDA under J-GAAP)**Net operating profitOperating profit – other income + other expenses (similar to operating income under J-GAAP)
FY2018 FY2022
¥6.5 billion ¥9.0-10.0 billionOperating EBITDA growth (guideline): 15%
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Assumptions for achieving targetsBreakdown of full-year operating EBITDA
FY2018Operating EBITDA
FY2022Operating EBITDA (target)
Growth in core businesses
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
9,000
9,500
10,000
*Regarding deconsolidation of GTSOperating EBITDA of GTS for FY2018 was a loss of ¥913 million. However, all figures are approximate.
0
6,500
Manufacturing+1,000
Healthcare+1,000
Senior and Lifestyle +500
New/Other
Deconsolidation of GTS
+1,000
9,000〜10,000[Unit: millions of yen]
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Shareholder Return Policy
FY2017 FY2018 FY2019(Plan)
FY2022Target
Aim for dividend per share of ¥25.00
10.0015.00 15.00
(Target)25.00
■ Dividend per share (Yen)
Copyright (C) 2019 NORITSU KOKI Co., Ltd. All Rights Reserved. 19
Contents
1 Overview of the Plan
2 Business Policy
3 Appendix
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Overview of Noritsu Koki Group Businesses
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Manufacturing Business: Group Companies
Value-added manufacturing from Japan to the worldsoliton joined the Group and aims to capture massive
global demand for new products such as cosmetics
TEIBOWDrawing the future in new fields with the top global share in pen nibsHandling approximately 3,400 product types per year with sales in Japan and more than 45 countries globally, TEIBOW is applying its technological capabilities centered on its leading share of the global pen nib market to take on development of ultrafine tubes that support the cosmetics industry and advanced medicine. The company is also expanding its activities in the new field of metal powder injection molding (MIM).
soliton
In 2019, the company will be grouped together with TEIBOW to manufacture integrated products in response to customer needs
around the world
No. 1 in Japan No. 1 globally
Automated manufacturer of brush heads based on traditional “Nara Brush” techniques
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Manufacturing Business: Results
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Net sales Segment profit
[ Unit: millions of yen ] [ Unit: millions of yen ]
22
FY2016 FY2017 FY2018 FY2016 FY2017 FY2018
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Healthcare Business (Medical Tech): Group company
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Aim to reorganize the three medical tech field companies into a single group and conduct an IPO
Illuminating the future with one of Japanʼs largest medical data bases available for private sector use
JMDC
Medical statistics data service
A leading company in remote image diagnosisStarting expansion of image diagnosis in ChinaDoctor-NET
Remote image diagnosis service
Proposing next-generation pharmacies with ICT, based on the Smart PharmacyTM conceptUNIKE Software
Research
System business for insurance pharmacies
No. 1 in Japan
No. 1 in Japan
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Healthcare Business (Testing/Distribution): Group Companies
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Early realization of advanced preventative medicine testing and technologies, aiming to promote preventative medicine starting from disease risk testingNK Medico
Preventative medicine business
Starting a revolution in distribution for the dental industry with innovative dental equipment, supplies, and servicesFEED CORPORATION
Mail order business for dental products
Management consulting and support for over 50 medical institutionsStrengthening management capabilities on the medical and nursing care front linesNS PARTNERS
Provide management support to medical institutions
Leading company in both performance and market share in the field of new antenatal diagnosticsAiming to develop new genetic testsGeneTech
Fetal DNA testing service using maternal blood
No. 1 in Japan
No. 1 in Japan
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Healthcare Business: Results
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Net sales Segment profit
[ Unit: millions of yen ] [ Unit: millions of yen ]
FY2016 FY2017 FY2018 FY2016 FY2017 FY2018
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Senior and Lifestyle Business: Group Companies
Zenkokutsuhan
Catalogue mail order business for seniors
Launched Japanʼs first Health Age linked SAST insurance policiesDevelop new insurance products going forwardHealth Age SAST
Insurance
SAST life and medical insurance
Leading company in providing easy-to-understand home contents insurance for rental accommodation users
SAST home contents insurance
HALMEK
Publishing and mail order sales business for seniors
Nihon Kyosai
No. 1 lifestyle magazine and mail order sales targeting senior women readersEvolve Halmek Holdings as a total service company for seniors
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No. 1 in Japan
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Senior and Lifestyle Business: Results
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Net sales Segment profit
[ Unit: millions of yen ] [ Unit: millions of yen ]
FY2016 FY2017 FY2018 FY2016 FY2017 FY2018
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Drug Discovery, Agriculture and Foods, and Other Businesses: Group Companies
Drug Discovery BusinessStarted clinical trials of JRM-001 (autologous cardiac stem cells), the first product of its kind in the world, in pediatric patients with congenital heart diseaseJapan Regenerative
Medicine
R&D on regenerative medicine technologies and products and cellular medicine products
Agriculture and Foods Business
Combine agriculture and IT to produce “functional vegetables” offering reliable, safe high added value
NK Agri
R&D of functional vegetables
Other BusinessOperating a graphic production platform with over 35,000 creators in 15 countries
KIRARITO
Graphic solutions business
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Copyright (C) 2019 NORITSU KOKI Co., Ltd. All Rights Reserved.
None of the information in this material is intended as an inducement to buy or sell the Companyʼs stock. Moreover, the Company makes no guarantees regarding the content of this material.
The Companyʼs current plans, strategies, and other matters in this material that are not historical facts are forward looking statements estimated at the time of publication based on the Companyʼs judgement from information available to date. Actual results may differ significantly due to various factors and risks, and the Company makes no assurances or guarantees whatsoever.
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