0Copyright © 2020 Toray Industries, Inc.
Toray IR Day Medium-term Management Program “Project AP-G 2022”
June 4, 2020
Films Business
Osamu InoueSenior Vice President, General Manager, Films DivisionToray Industries, Inc.
1Copyright © 2020 Toray Industries, Inc.Copyright © 2020 Toray Industries, Inc.
Contents
I. Overview of Films Business
II. Review of “AP-G 2019”
III. Basic Policies and Major Issues of “Project AP-G 2022”
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I. Overview of Films Business
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Net Sales by Segment
Toray Group total2.2 trillion yen
1. Consolidated Net Sales of Films Business (FY 2019)
770.8
883.1
236.9
252.3
Performance Chemicals
Fibers & Textiles
Carbon Fiber Composite Materials
Environment & Engineering
Life Science Others
billion yen
(34.8%)
Net Sales
Films 316.1
Resins, Chemicals 319.3Electronic &Information Materials 67.7
Trading 449.1
Adjustments ▲ 381.4
Total 770.8
About 14% ofConsolidated
Net sales
Billion yen
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TTS (Thailand)
Film processing
Base film
TAF (Takatsuki)
2. Production Bases of the Films Business
TFE (France)
PET・OPP
YTP (China)
PET
TAK(Republic of Korea)
PET
TBSK(Republic of Korea)
BSF
PFR (Malaysia)
PET
TFZ (China)
TAFK (Taiwan)PE
TFN (China) TPA (USA)
PET・OPP
GifuPET, PPS
TAF (Nakatsugawa)
TAF (Fukushima)
MishimaPET,
Aramid
TsuchiuraOPP
NasuBSF
TKP (Kakogawa)
THU (Hungary)
BSF
TBCK(Republic of Korea)
BSF
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■TPA (USA)■ YTP
(China)
■ TFE (France)
■ PFR (Malaysia)
Japan
3086
147
■TAK (Republicof Korea)46
45
43
(unit: 1,000 tons/yr)
3. Toray Group Production Capacity of PET Filmand OPP Film
4619
14
OPPFilm
PETFilm
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Brand Product Major Applications
LUMIRRORTM Polyester (PET) filmrelease film in production lines, optical materials,magnetic recordings materials,packaging material
TORAYFANTM Polypropylene (OPP) film capacitor, packaging materials
TORELINATM Polyphenylene sulfide (PPS) film release film in production lines, capacitor, electrical insulator
MICTRONTM Aramid film magnetic recordings materials
SETELATM Battery separator film (BSF) separator for secondary lithium-ion batteries
TORETECTM Non-oriented polyethylene film self-adhesive protection film (optical, functional resin plate)
BARRIALOXTM Clear metallized film packaging material
4. Toray Group Main Films
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5. Fundamental Film Technologies and Product Line-up
Polymer technology
Film technology
Synthesis, molecular design
Solution casting
Melt extrusion, casting
Structural design, control
Surface design, control
Fundamental technologies Pursuit of ultimate performance Product line-up
microporous PE filmSETELATM
aramid filmMICTRONTM
PPS filmTORELINATM
OPP filmTORAYFANTM
super smooth and transparentLUMIRRORTM U series
metallic lusterPICASUSTM
for capacitorsTORAYFANTM
Automobiles
Display
release filmLUMIRRORTM R series
Lithium-ion battery
microporous PE filmSETELATM
high rigidity
heat resistance
electrical characteristics
microporous
transparency
reflective properties
dimension stability
surface smoothness
Data storage
aramid filmMICTRONTM
Nano-layered filmPICASUSTM
super smooth and transparent, good adhesion, high-functional release film
LUMIRRORTM
for electric insulationTORELINATM
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II. Review of “AP-G 2019”
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Review of “AP-G 2019”
PET film :Completed the restructuring of theproduction system
BSF :Expanded production capacityLow-profitability companies:Promoted business
structure reform
Progress in “AP-G 2019”Progress in “AP-G 2019”
PET film:Slowdown in sales for main applications (MLCC, etc.)
BSF:Downward swing in major customers’ demandPrice decline due to intensifying competition
Market slumped in FY 2019 on the back of US-China trade friction, and business expansion fell short of the plans
Market slumped in FY 2019 on the back of US-China trade friction, and business expansion fell short of the plans
【Trends in net sales of Films Business】
(note) include transactions within the Group
(battery separator film)
293.2
330.8
352.7 316.1
0
100
200
300
400
2016 2017 2018 2019
(Billion yen) "AP-G2019"Target
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III. Basic Policies and Major Issues of “Project AP-G 2022”
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1. Basic Policies of Project “AP-G 2022”Business environment, External structural changes
Expansion of xEV, Automation⇒ Demand increase in BSF, MLCC for automotive applications and
film capacitorsProgress in 5G, IoT⇒ New business opportunities in next-generation display
applications, etc.Tighter global environmental regulations⇒ Requests for reduction of plastic wastes, and recycling
Basic Policies for Films Business
Expanding high value-added products in the growth business fields
Accelerate development and creation of new products and applications
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①PET film: Strengthening global supply of highly functional release applicationsexpanding nano-layered film PICASUSTM
②BSF: Strengthening production facilities in Europe, driving differentiation strategy in high functional products
③OPP film: Strengthening production facilities and expanding sales in automotive capacitors
④Processed film products: Strengthening supply capacity and promoting high value-added products
(1) Expanding high value-added products in the growth business fields
2. Basic Policies and Major Issues
(2) Developing new products and new applications
①Strengthening development of new products and materials by anticipatingmarket demand
② Driving development of environmentally-friendly technologies in order toenhance sustainability
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3. Key Initiatives (1) – 1: Expanding PET Film Business6 operational bases worldwide, production capacity at about 400,000 tons/yr,No. 1 global market shareWide range of applications including information and telecommunications, general industry, and packaging materials
Global operation of PET films
Expanding highly functional release applications (MLCC, DFR, etc)⇒ Strengthen the overwhelming top market
position through increased supply capacity andadvanced technologies
Expanding functional nano-layered film PICASUSTM
Advancement in information interfaces such as 5G and IoT
Expansion of xEV and progress in automation
Strengthening cost competitiveness through
use of ICT
Strengthening cost competitiveness through innovation of production process and the use of ICT
Expanding High Value-added Products in the Growth Business Fields
■TPA (U.S.A.)
■YTP (China)
■TFE (France)
■PFR (Malaysia)
Japan■TAK (Republic of Korea)- Expanding market share in Europe
- Mother plants- Developing and expanding highvalue-added products
- Responding to theexpanding Chinese market
- Manufacturing high value-added products to the ASEANcountries
- Serving major Korean customers- Operational base for the
US market
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Business OpportunitiesMLCC: Increased functions of smartphones and installation of base stations with the spread of 5G,
expanding demand due to the increased use of electronics in automobilesDFR: Downsizing of circuit substrates, higher definition of wiring circuits
Strategies
quality-control expertise
StrategiesIn addition to the surface-forming technologies developed in the 90s with magnetic tapes, promote business expansion in areas where market growth is expected such as MLCCs and DFRs, using high quality-control expertise
Expanding High Value-added Products in the Growth Business Fields3. Key Initiatives (1) – 2: Expanding Highly Functional Release PET Films
201020001990
Release films for ceramic capacitors (MLCC)
2020
Films for DFR expansion
Films for video tapes convergence
Smartphone circuit boards
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Business Opportunities: Advancement in smartphones (with 5G etc.), progress in automotive CASE→ Downsizing of MLCC, increased number of ceramic layers for higher capacity, and increase in the
number of units installed
Expanding High Value-added Products in the Growth Business Fields3. Key Initiatives (1) – 3: Expanding MLCC Release PET Films
- Reduction of surface roughness
- Reduction of foreignsubstance
Optimization of front and
back roughness
Surface designPursuit of ultimate
performance
Thickness uniformity
Multifunction of mobile phones,
smartphones
Mobile device(wearable, etc.)
small-size MLCC, multi-layer, thin-layer
Automotive application
High reliability and long-term warranty
Devices
Requirements in film
properties
2000 2005 2010 2015 2018
PC, TVMobile phones
(dawn)
5G, AI, robotAutomatic driving,
drone
Homogeneous smoothnessZero-defect
Changes in devices and requirements in film properties
Toray’s strength- Advanced surface design technology and
know-how of zero-defect- Production at 4 locations worldwide
(Mishima, Gifu, Republic of Korea, Malaysia)
Quality requirements for films continues to increase
Film
surfa
ce
High-reliability
Mobile electronics
Mobility5G
equip-ment
Industrial Home
appliance
High-precision
- Covering commodity and advancedapplications with reliability
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Expanding High Value-added Products in the Growth Business Fields3. Key Initiatives (1) – 4: Expanding PET Films for DFRWhat is DFR (Dry Film photo Resist) ?
Photoresist formed by a photosensitive resin in a film form (*)
Used to form circuit boards for electronic components
Circuit formation method
substrate
photosensitive resinPET
copper foil
photomask
resin cured by ultraviolet light
etching the exposed areas
photosensitive resinPET
DFR
* photoresist: photosensitive materials whose properties (solubility) changes with light
Curing resist by UV light through PET→ foreign substance inside the PET is the cause of
exposure blockage (defects)UV exposure
Downsizing of circuit boards, increase in fine-pitch of circuit board wiring (L/S)
Will proceed with differentiation and maintain a high market share by anticipating the increasing sophistication of quality requirements, such as high transparency, reduced surface micro-scratches, and control of foreign substances inside the film
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3. Key Initiatives (2) – 1: Expanding BSF Business Production at 2 locations (Japan, Republic of Korea) worldwideHigh safety through COEX (co-extrusion) technology, high-performance coating
- Expanding demand for automotive applications mainly in the European market on the back of growing global demand for xEVs
- In addition to IoT devices, the range of consumer applications is expanding to include stationary fuel cells and power tools
Expanding production facilities at locations with increasing demand (Hungary)(scheduled to start operation in 2021)
Proceed with differentiation to build competitive advantage by anticipating customer demands for high-safety, high-quality and high-functionality
Expanding High Value-added Products in the Growth Business Fields
0.0
2.0
4.0
6.0
8.0
2018 2019 2022
Demand for Battery separator films(billion ㎡/yr)
Automotive
applications
Consumer
applications
0.0
0.5
1.0
1.5
End of
2018
End of
2019
End of
2022
Toray Group production capacity of
Battery separator films
(billion ㎡/yr)
Hungary
increaseabout 30%
increaseabout 20%
annual growth rateover 20%
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Thin-layer,High-strength
Thin-layer,High-strength
COEX(co-extrusion)
COEX(co-extrusion)
Heat-resistant Layer (180℃)
base layer(150℃)
Fine pore structure control
Film thickness (4μm~)Increased energy density
Improved reliability due to uniform ion transmission
Increased safety throughimproved heat resistance
⇒ Contributing to outstanding safety andimprovement of LIB performance
Polymer design Process control Film structure control
Base Film technology
cross-section (image)
ion path
surface (AFM image) separator thickness (μm)
ener
gy d
ensit
y
9 41μm
Expanding High Value-added Products in the Growth Business Fields3. Key Initiatives (2) – 2: Expanding BSF Business
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< Heat-resistant ceramic coating>
uncoatedceramic coating
Heat resistant film breakage : hot nail test (450℃)
450℃solderingiron
separator
<Adhesive Coating>
Heat-resistant coating technology
cross-section
heat-resistant coating layer
substrate
Assembly deformationwithout adhesion
with adhesion 50
60
70
80
90
100
110
0 100 200 300 400
容量維持率(%)
充放電回数
with adhesion
without adhesion
Heat resistanceHeat resistanceCeramic particle
homogenous distribution technology
AdhesiveHigh-functional binder design
technology
AdhesiveHigh-functional binder design
technology
Improved heat resistance ⇒ High safetyAdhesion to the electrode⇒High reliability, longer battery life
Battery cross-sectional view(X-ray CT image)
Prevention of short circuit inside the battery Improved battery life and reliability
3. Key Initiatives (3) – 2: Expanding BSF BusinessExpanding High Value-added Products in the Growth Business Fields
Number of charge/discharge cycles
Capa
city
Mai
nten
ance
Rat
io (%
)
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3. Key Initiatives (3) – 1: Expanding OPP Film Business
Production at 3 locations (Japan, US, France) worldwide
Focus on capacitors for xEVs (Japan), high-functional packaging materials (US, France)
Expanding demand for automotive capacitors for use in HEVs, etc.
Increase production facilities for ultra-thin, high voltage resistant OPP films ⇒ build a system to increase production at Tsuchiuraplant (plan to start operations in 2022)
Increasingly diverse and sophisticated customer needs in the food packaging market
Introduced the latest 5-layer laminated, high-speed film production facility at TPA (USA) (plan to start operations in 2020)
Capacitor applications High-functional packaging materials
Expanding High Value-added Products in the Growth Business Fields
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250
300
350
400
450
500
2000 2005 2010 2015 2020 2025耐電
圧高
温(1
25℃
)BD
V
(V
/μ
m)
年
フィルム厚み3.0μm
2.5μm2.3μm
3.2μm
2.0~2.3μm
3. Key Initiatives (3) – 2: Expanding Ultra-thin OPP Film for Automotive CapacitorsExpansion of xEV market (millions units )
Capacitors for HEV
• Automotive capacitors : used in the inverter circuit of the PCU* that drives the motor of the car
• There is a strong need for smaller and lighter PCU and film capacitors to improve driving performance, fuel efficiency, interior space, and design flexibility
Captured the top share of the market by combining the contradictory characteristics of thinness and high voltage resistance through our proprietary technologies
Expanded the production facilities at the Tsuchiuraplant to increase the production capacity of films for automotive capacitors to 1.6 times the current scale
Expanding High Value-added Products in the Growth Business Fields
* PCU=Power Control Unit
TORAYFANTM leads the market in achieving high voltage resistance with thinner films
film thickness
BDV
(125℃
)(V
/μm
)
3 4 5 7 11 15 20 27 321 2 2 2 4 5 7
9 11
01020304050
2017 18 19 20 21 22 23 24 25
EVHEV+PHEV
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3. Key Initiatives (4) : Accelerate development by integrating core technologies
low oligomerlow oligomer weather resistant polymerweather resistant polymer
recycling technologyrecycling technology hydrothermal resistant polymer
hydrothermal resistant polymer
nanoalloy, co-polymerizationnanoalloy, co-polymerization
filler, inner grain controlfiller, inner grain control
physical property control
physical property control
high-functional surface treatmenthigh-functional
surface treatment
fine laminationfine lamination optical property designoptical property design
surface structure design, controlsurface structure design, control
extrusion, retention controlextrusion, retention control
castcast
zero-defect coatingzero-defect coating
cleaningcleaning static Controlstatic Control thickness controlthickness control
fine windingfine winding
micro-defect evaluationmicro-defect evaluation
dimensional stabilizationdimensional stabilization
equipment designequipment designzero-defect stretching, delivery
zero-defect stretching, delivery
ultra-thin, ultra-thick film production
ultra-thin, ultra-thick film production
● Polymer design, polymerization technology ● Film design, control technology
● High-quality, high-grade film manufacturing process technology
Developed high-functional products and realized low costs utilizing proprietary core technologies
Developing New Products and New Applications
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3. Key Initiatives (5) : Quality Improvement through Evolution of Process Fundamental Technologies
- polymer nano dispersion - fine filtration
・高機能口金・高精度制御
High-functional polymer technology
- high-functional socket- fine control
- high-speed slitting of thin, smoothproducts
- electrostatic control, zero foreignsubstance
- simultaneous, sequentialbiaxial drawing
- vertically, horizontally low heat-absorption
- zero-defect coating
- thin-layer laminate- multi-layer laminate
- stretching temperature control- scratchless roll formationFine multi-layer technology
Zero-defect longitudinal extension technology
High-functional coating technology
Fine winding technologyDimensional stabilization technology
Nano-thickness control technology
Possessing the world's highest level of process fundamental technologies
Developing New Products and New Applications
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3. Key Initiatives (6) – 1 : Expanding Nano-multilayer Film PICASUSTM
【 Nano-multilayer film PICASUSTM】Toray’s unique nano-layering technology⇒ about 1,000 layers with thickness of nanometersCharacteristics: non-metal, electromagnetic wave permeable, good formability+ selectively reflects light of various wavelengths (ultraviolet, visible light, infrared rays)
Expand each of metallic films, blue-light block, and UV protection applicationsTargeting energy conservation and augmented reality (AR), etc., currently developing high thermal-insulation types, front transmittance and oblique reflection types
Basic structure of PICASUSTM
Developing New Products and New Applications
Blue Light blockingFilm
Transmission of Visible Light
Reflection of Blue Light
Cold Mirror
Reflection of
Visible LightTransmission
of Near-IR Light
Can control the light with PICASUSTM
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3. Key Initiatives (6) – 2 : Expanding Nano-multilayer Film PICASUSTM
Developing New Products and New Applications
Applications
Reduces blue light, the cause of eyestrain
Sensor covers for in-vehicle emblems, etc.Visible light reflection (metallic),
millimeter-wave transparency
Blue-light reduction
Metallic : Design quality
Heat reflection: Energy conservation
Window filmReflect near-infrared light, transmit visible and
electromagnetic waves
Viewing-angle control
Head-up display
PICASUSTM
applied part
CorneaRetina
Crystalline Lens
Blue Light
Visible Light
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3. Key Initiatives (7): Establishing a Recovery System for Release Films
Current situation Plan 1 Plan 2&Selling wastes,
Thermal recyclingRecycling to other
productsFilm to Film
Recycling concept
Release PET films are currently used mainly for waste treatment and thermalrecycling as it is difficult to remove coating materials and resins, etc. at each process in the supply chain
Plan 1: Establish a recovery system and utilize them in our other materials such as fibersPlan 2: Establish a circulation-type cycling system by reusing films
Developing New Products and New Applications (enhance sustainability)
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3. Key Initiatives (8): Developing High Value-added Processed Film ProductsThe aluminum evaporated layer blocks oxygen and water vapor
Providing optimal products to meet diverse needs
Providing products optimized for various
film processing technologies
Providing products optimized for various applications, from packaging for snacks to emergency food and space food, by combining film products and film processing technologies
Contributing to the reduction of food waste by extending the life of food products
• Diversified needs in the food packaging market due to changes in eating habits and diversification of packaging methods
• Increasing efforts to reduce food loss
• Increasing quality requirements in packaging applications
Developing new applications with new film processing technologies・Introduce new technologies for high adhesion and high barrier properties (for oxygen and water vapor)・Develop vacuum insulation materials and materials for automotive thermal barrier applications (high value-added applications) utilizing new technologies
Developing New Products and New Applications (enhance sustainability)
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4. Net Sales, Revenue Targets for Growth in the Films Business
0
100
200
300
400
2016 2017 2018 2019 2019 2022
(Billion yen)
Target
380
J-GAAP IFRS(IFRS estimation)
317
Actual
+20 %
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Descriptions of predicted business results, projections, and business plans contained in this material are based on predictive forecasts of the future business environment made at the present time.
The material in this presentation is not a guarantee of the Company’s future business performance.
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