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Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
The 11th Mid-term Management Plan (FY2021-FY2023)
February 16, 2021Takahisa TakaharaPresident and CEOUnicharm Corporation
Projections stated in these materials include those based on the Company’s currently
obtained assumptions, forecasts and plans regarding the future. Therefore, actual
results may differ significantly from projections due to risks associated with market
competition, foreign exchange rates, etc. and uncertainties.
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Contents
2
Review of 10th Mid-term Management Plan (2017-2020)
Desirable future in 2030
11th Mid-term Management Plan (2021-2023)
Medium-to-Long-term financial goals (2023, 2030)
Capital Policy・Shareholder Return Policy
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Review of 10th Mid-term Management Plan (2017-2020)
◆ Notations
WC: Wellness Care Business
FC: Feminine Care Business
BC: Baby Care Business
PC: Pet Care Business
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
300
1300
2300
3300
4300
5300
6300
7300
8300
9300
FY2016 FY2020P FY2020
Sales
604.7
billion yen
Sales
800.0
billion yen
Sales
727.5
billion yen
CAGR
+7.0%
Indicator Plan Achievement Achievement evaluation
CAGR※1 +7.0% +4.7%(+5.6%※2) ×
Core operating income 15.0% 15.8% ◎
ROE 15.0% 10.8% ×
*1 CAGR is Compound Average Growth Rates)
*2 Compound Average Growth Rates excluding impact of fluctuation in exchange rate
10th Mid-term management plan (FY2017/12-FY2020/12)
Review 10th Mid-term Management Plan (2017-2020)
4
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Positive
5
New Normal pervades under COVID-19 pandemic
Formulate strategy by backcasting from
the desirable future in 2030
Propose product value to
diverse customers
Market creation in areas that
are estimated to grow
Decline of birthrate beyond expectation
in every country
High growth of HC in Japan and Southeast Asia
High growth of profitable FC in China
High growth of PC in Japan and North America
Slow growth of BC in every country
Strong yen beyond expectation
Negative
Cost improvement
Review 10th Mid-term Management Plan (2017-2020)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Desirable Future in 2030
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Rich and warm social community where everyone around the world
is equal and comfortable, respects individuality and
shows mutual support and understanding
7
How we want to be in 2030
Realize “Cohesive Society”
“Cohesive Society” that Unicharm aims to reach
Social Inclusion
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 8
Ideal Form of “Cohesive Society”
Realizing “Cohesive Society”Mission
Life YellowProducts and services
that fit diverse values
and life styles
Human OrangeEliminating
discomfort in health
of all the people
Science BlueCreating new health
and comfort by
life science
SDGsSolving social issues
through business and
succeed the wealthy life
to the next generation
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
9
Desirable Future in 2030
Toward Realizing “Cohesive Society”
*1 Stands for our corporate philosophy “Necessity of Life with Activities & Dreams of Life with Activities”. With wishes to provide all people of all
ages, from babies to the elderly, with products that support their minds and bodies in a gentle way and make them free from various burdens to allow
them to fulfill their dreams.
*2 A management model.
Management with Resonance*2
Realize Cohesive Society
Pursue “wealth in three aspects” and develop the personnel, who can contribute to the society more widely.
The source of creating wealth in wide society. Its core is non-woven absorbent technology
Practice of
NOLA&DOLA*1
Encourage individual independence and mutual assistance
Mission
Vision
ValueResolution, Will
What do we
want to do?
How to realize?
By using UC Way, integrate vector of all members
SDGsPurpose
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
11th Mid-term Management Plan(2021-2023)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 11
Formulate strategy by backcasting from
the Desirable Future in 2030
Use DX and strengthen the brand
by exploring the deep psyche of customers
Analyze the principles of
"Monozukuri" (manufacturing excellence)
Thoroughly to build optimal processes
Maximize lifetime value by developing products
that win the hearts and minds of customers
Realize the ultimate GENBA
(Total optimization/smartification/improvement group)
Establish recycling value chainResolve social issues and
coexist with the earth
Strengthen and infiltrate
human resource development
Focus on new growth pillars
Foster resonant personnel around the world to
shift to the management mainly composed of locals
Achieve the top share of nonwoven fabric
absorbent core business in the global market
Strategy 1
Strategy 2
Strategy 3
Strategy 4
Strategy 5
Desirable Future in 2030 11th Mid-term Management Plan
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 12
11th Mid-term Management Plan Strategy - Main Targets
Overseas
Sales Ratio2023:65%(2030:70%)
Ratio of national staff in management positionGeneral Manager:65%
Manager:87%
Ratio of female in management position Group:30% Japan :18%
HQ female employeeratio:50%
New EntryAchieve 10% market share
(including expansion
to Africa)
Utilize DXPropose the world’s first
optimal discretion care
HC marketKey cities in China
Top Market Share
Used
Disposable DiaperLaunch recycle project
Usage of plastic
in packagingReduce 5%
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Organize Project Gen-Z by
inviting public participation,
and lead globally how to use.
13
Mid-term Management Plan (2021-2023)
Strategy 1
Globally develop “Resonant Personnel” who will be the driving force to be the best in the world
Needs for Independent, issue-raising
“Resonant Personnel” to realize
cohesive society and the best in the world
Global personnel development
is top priority
HR Dept in every country uses the same
system for personnel development, and
gather successful examples
Released in 1986
Establishing Global personnel data base to place right
personnel in the right position is under consideration
Move from paper to multi media.
Develop “search, memo, tag” features
Introduce and utilize HR system “KYOSHIN” to
accelerate personnel development
Introduced to 16 companies
by the end of 2020
Cultivate shared values through “UC Way” Foster independence and growth globally
11th Mid-term Management Plan 2021-2023
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 14
New Sustainable Growth Strategy with SDGs as a purpose
Strategy 2,3
Kyo-Sei Life Vision 2030
Mature Market
20302023
Sales
CAGR
+6.9%
Sales
CAGR
+6.8%
COPM*
15.5%COPM
17%
Growing Market
Sales
CAGR
+5%
Profitability
High
Sales
CAGR
+10%
Profitability
Low
Marketing, R& D, Smartification DX
Safe and Secure Happiness PropositionAdded value
Establish Recycling BusinessRecycle
Concentrated Investing in HC and PCConcentrated
Investing
Globally develop “Resonant Personnel” who will be the driving force to be the best in the world
New customer
developmentPrior Investment to Attractive Markets
* COPM stands for Core Operating Profit Margin
11th Mid-term Management Plan 2021-2023
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 15
Mature Market Marketing・R&D・SmartificationDX
Mid-term Management Plan (2021-2023)Strategy 2,3
Drastic reform on how to provide products, services, and values
through DX
Marketing (digital×customer+α)
• Brand penetration strategy by country and category
• Consumer channel strategy utilizing digital finance
• Customer data accumulation and analysis through products
and apps
R&D (Data science. Smart lab)
• Product development through researching new life style
• Research resource processing that reduces
environmental impact
• Product development that solves social issues by
country
Smartification (digital×things+α)
• Accelerate development of smart factories
• Things×digital evolve how to deliver/provide
11th Mid-term Management Plan 2021-2023
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 16
Mid-term Management Plan (2021-2023)Strategy 2,3
Marketing(Digital×Customer+α)
R&D(Data Science/Smart Lab)
Smartification(Digital×Things+α)
Unicharm
Digital
Innovation
Center
DIC
DIC
・New value proposition with
pearl essence added,
silky feel cotton
disposable diaper
・”Heating napkin” focusing on
menstrual pain
Built-in heating area realizes
“leakproof” and “warming the
body” features
・Health promoting food for
cats. “Muscle health promotion
for neutered/ spayed cats”
“Kidney health promotion”
Digital infrastructure is utilized at Digital
Innovation center when collecting,
accumulating, and integrating word-of-
mouth and posts for SNS and e-commerce. ・Kyushu Factory
Cutting-edge smart factory in Japan
Aim to achieve improved speed in discovering opportunities for new markets
by speeding up validation for consumer insights, by increasing success rate of product strategy,
and by utilizing data from wider generation.
11th Mid-term management plan 2021-2023
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 17
Mature Market Safe and Secure which bring Happiness PropositionAdded Value
Mid-term Management Plan (2021-2023)Strategy 2,3
Add high-value ・ create comfort ・ contribute to reduce burden ・ propose solution to social issues
Total support of “healthy longevity society” and “pet’s life”・ Expand positive margin mix
Realize to become synonymous with the best brand
in “with Corona society”
Examine the possibility of“visible face mask” with Unicharm technology
Happiness proposition by utilizing DX that wins the hearts and minds of customers
11th Mid-term Management Plan 2021-2023
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0
200
400
600
800
1000
1200
1400
1600
2020 2030 2040 2050
World Asia China
18
Mid-term Management Plan (2021-2023)Strategy 4
0-4 population 65+ population PC market
Continually increasing
in Africa
Rapidly increasing
worldwide
(million people)
Rapidly expanding
China/Asian markets
(billion yen)
*1 *1 *2
*1 UN:World Population Prospects 2019 *2 Euromonitor / Survey by Unicharm
11th Mid-term Management Plan 2021-2023
0
50
100
150
200
250
300
350
400
2020 2030 2040 2050
Asia Africa China
0
200
400
600
800
1000
1200
1400
1600
2020 2025 2030
Asia Japan China
Asia
Africa
China
World
Asia
China China
Asia
Japan
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Aggressive investment in IoT related product,
with possibility of M&A
Growing Market Concentrated Investing in HC and PCConcentrated
Investing
Mid-term Management Plan (2021-2023) Strategy 4
HC PCFurther penetration of convenient
Japanese care model
Improve margin mix by penetration
and premiumization
Expansion of pet food and toiletries to Asia
11th Mid-term Management Plan 2021-2023
19
UC
Group
Market
Development
in China and
Lead
Southeast Asian
Market
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 20
Growing Market Prior investment to attractive marketsNew customer
development
Set new priority countries in Africa
Establish global supply system
New
priority countries
including Africa
• Set new priority countries considering market size
and distribution structure
• Establish original optimum global supply system
Mid-term Management Plan (2021-2023) Strategy 4
Rapid expansion of area
• Overwhelming share in urban area by brand strength
/ Expand rapidly to countryside
Rapidly expand
the share in urban areas
to countryside
11th Mid-term Management Plan 2021-2023
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Mature Market Establish recycling businessRecycle
Mid-term Management Plan (2021-2023) Strategy 5
Population decline
Aging
Decarbonization
Increase in ratio of
disposable diaper in waste
Increasing waste
problem of adult diaper
Accelerate measures for
decarbonization
in every country and
company
Operationalize recycling of disposable diaper
Promote transition to renewable energy
Promote plastic reduction
• Establish original recycle technology that is
both eco-friendly and profitable
• Strengthen partnership with municipalities
• Cost stabilization through generating own
energy, transition to resource recycling model
• Avoid cost rise by reducing fossil fuel
resources
• Reduce plastic in packaging materials while
maintaining customer benefit
Profit increase
from recycling
business
Increase
corporate value
New business
model that
solve social
issues
11th Mid-term Management Plan 2021-2023
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 22
Mid-term Management Plan (2021-2023) Strategy 5
Unicharm’s”Disposable diaper recycling model”
Aims to realize the future where used diaper recycling is the norm,
by strengthening partnership with
disposable diaper users and municipalities
Recycleall materials
Used disposable diaper
to sanitary materialof clean quality
No pollution
to water and airby ozone bleach and
sterilization
Approaching
the future where
recycling is
the norm
over - 90% over - 80% over 100Kg /1t
used diaper
Amount of CO2 emitted from
burning disposable diapers Amount of waste generated
from disposable diaper Amount of recycling recycled pulp
* 1 Ministry of Environment Guidelines for recycling used disposable diaper
* 2 Survey by Unicharm
* 3 Journal of Environmental Information Science Vol.33 (2019)
*1 *3*2
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Mid-term Management Plan (2021-2023) Strategy 5
Toward safe and secure material
without stressing the environment
Unicharm’sRecycling model for disposable diaper
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Medium-to-Long-term Financial Goals (2023, 2030)
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300
2300
4300
6300
8300
10300
12300
14300
16300
FY2020 FY2023P FY2030P
0
Kyo-Sei Life Vision 2030
Medium-to-Long-term Financial Goal (2023, 2030)
11th Mid-term Management Plan
Sales
727.5
billion yen
Sales
888
billion yen
Sales
1.4
trillion yen
Indicator FY2023 Plan
FY2030Desirable Future
FY2020(Reference)
Sales 888 billion yen 1.4 trillion yen 727.5 billion yen
CAGR +6.9% +6.8% -
Core operating income rate 15.5% 17.0% 15.8%
ROE 15.0% 17.0% 10.8%
25
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Capital Policy・Shareholder Return Policy
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
0%
50%
ROE
Consolidated dividend payout ratio
Total payout ratio
27
Capital Policy・Shareholders Return Policy
Cash flow from sales activities
Business investment to achieve
sustainable growth (including M&A)
Investment to promote SDGs
Shareholders return
(We are aiming at returning profits to our shareholders with a goal of total payout
ratio of 50% by paying dividends on a consistent and continuous basis and acquiring
treasury shares, upon necessity, on a flexible manner.)
Divided
596 688957
689 8501,036 981 1,109
849
1,503
0
500
1,000
1,500
2,000 Operating cash flow (100 Million yen)
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved.
Investment for Sustainable Growth
28
Capital
Investment
M&A
R & D
Expenses
10th Mid-term
Management Plan
(FY`17~FY`20 4 years)
11th Mid-term Management
Plan
(FY`21~FY`23 3 years)
153.2 billion yen(38.3 billion yen/
annual average)
120-150 billion yen(40-50 billion yen/
annual average)
59.9 billion yen Under consideration
2.2 billion yen 6 billion yen
28.6 billion yen(Sales ratio 1.0%)
25-37 billion yen(Sales ratio1.0%〜1.5%)
DX-related
Investment
Copyright (c) 2012 Unicharm Corporation. All rights reserved.Copyright (c) Unicharm Corporation. All rights reserved. 29
We support the Sustainable Development Goals (SDGs)