“Katakura 2016” Medium

“Katakura 2016” Medium-term Management Plan
Katakura Industries Co., Ltd.
(Code 3001, TSE 1st section)
December 1, 2011
1
Contents
1. Background for “Katakura 2016” p.3
2. Numerical Plan
p.8
3. Fundamental Strategy
p.12
4. Business Segment Strategies
p.14
5. Employees/Dividends
p.24
2
1. Background for “Katakura 2016”
3
【The Source of Katakura’s Diversification】
Raw silk production
Carrying on the tradition
of raw silk production
Textiles
Silk thread production
Silk thread research
Originating from research to
create outstanding silk
products
Pharmaceuticals
Raw silk
Start of operations
Company established
Manufacture of silk reeling machines
Utilizing know-how from
developing
machines to make thread
Machinery
Apparel Business
Toa Eiyo Ltd.
Mechatronics Business
Manufacture and sale of underwear and
socks
Manufacture and sale of prescription
drugs
Manufacture and sale of automotive parts
and other products
Ogran Japan Co., Ltd.
Planning and sale of casual innerwear
Kafulas Co., Ltd.
Others
Bioscience Research Center
Production and sale of insect
pollinators and other products
Manufacture and sale of
foundation undergarments
Nihon Kikai Kogyo Co., Ltd.
Manufacture and sale of fire engine
Katakura Kiki Kogyo Co., Ltd.
Manufacture and sale of agricultural
machinery
1873
1920
Thread factories
Utilizing the former sites of
thread factories
Real Estate
Shopping Center Business
Operation of shopping centers, real
estate leasing
Real Estate Development Business
Development and use of companyowned land
Others
Retail Business
Operation of home improvement centers
Nichibi Co., Ltd.
Manufacture and sale of
functional fibers
Katakura Caron Service Corp.
Building cleaning and maintenance services
*Consolidated subsidiaries are shown in blue.
4
【 The Business Activities of Katakura Group 】
Textiles
Apparel
Ogran Japan Co., Ltd.
Pharmaceuticals
Nichibi Co., Ltd.
Machinery
Toa Eiyo Ltd.
Mechatronics
Real Estate
Commercial Facilities
Kafulas Co., Ltd.
Nihon Kikai Kogyo Co., Ltd.
Katakura Kiki Kogyo Co., Ltd.
Others
Real Estate Development
Retailing
Bioscience Research
Center
Katakura Caron Service
Corp.
*Consolidated subsidiaries are shown in blue.
5
【Corporate Philosophy and Vision】
Corporate Philosophy
Katakura Group is dedicated to helping create a sound and
fulfilling society as the guardians of life and good health while
embracing the principles of trust, sincerity and cooperation.
Corporate Vision
Our goal is to be a corporate group that pursues dispersion and
fusion while achieving high standards of health, safety and
comfort, and environmental responsibility in order to create new
seeds of growth.
Create
businesses that
contribute to
good health and
good living
Create
businesses that
make our lives
safer and more
pleasant
Create
businesses
that can help
protect the
environment
6
【Creation of “Katakura 2016”】
Katakura Group is undertaking a number of projects over the next five years. Along with these
projects, the group has created a medium-term management plan called “Katakura 2016” that
is based on the fundamental strategy of using the concept of “dispersion and fusion” to shift
emphasis to growing businesses and create new businesses.
Business Projects
２０１１
２０１２
3-1 Kyobashi Project (tentative name)
To be completed in March 2013
２０１３
Launch of new drug (TY-0201)
Sales to begin in fall of 2013
２０１４
２０１５
２０１６
Development of company
land in Matsumoto
To begin operations in fall of 2016
Saitama Shintoshin Stage 2 Development
To begin operations in 2014
A real estate development that will
attract more visitors by leveraging
synergies with adjacent companyowned land
Saitama Shintoshin Ekimae Winter
Illumination (Nov. ’11)
An event at Cocoon Shintoshin
(Stage 1 Development)
7
2. Numerical Plan
8
【Numerical Plan 】 Sales
(Million yen)
2011 Forecast
Amount
Net sales
Textiles
Pharmaceuticals
M achinery
Real Estate
Others
New businesses
49,000
11,500
18,200
8,500
6,600
4,200
－
Pct.
100.0%
23.5%
37.1%
17.3%
13.5%
8.6%
－
2011 Sales Forecast
Others
¥4,200 million
(8.6%)
Real Estate
¥6,600 million
(13.5%)
Machinery
¥8,500 million
(17.3%)
Textiles
¥11,500 million
(23.5%)
Pharmaceuticals
¥18,200 million
(37.1%)
2016 Plan
Amount
61,000
12,000
22,000
9,200
10,000
4,600
3,200
Increase vs. 2011
Pct.
100.0%
19.7%
36.1%
15.1%
16.4%
7.5%
5.2%
Amount
12,000
500
3,800
700
3,400
400
3,200
2016 Sales Plan
New businesses
¥3,200 million
(5.2%)
Others¥4,600
million (7.5%)
Growth rate
124.5%
104.3%
120.9%
108.2%
151.5%
109.5%
－
Textiles
¥12,000 million
(19.7%)
Real Estate
¥10,000 million
(16.4%)
Machinery
¥9,200 million
(15.1%)
Pharmaceuticals
¥22,000 million
(36.1%)
9
【Numerical Plan】 Operating Income
2011 Forecast
(Million yen)
2016 Plan
Increase vs. 2011
Operating income
2,250
4,200
1,950
(Operating margin)
( 4.6%)
( 6.9%)
( 2.3p)
50
1,850
0
1,800
(100)
－
(1,350)
500
2,400
250
2,500
150
150
(1,750)
450
550
250
700
250
150
(400)
Textiles
Pharmaceuticals
M achinery
Real Estate
Others
New businesses
Adjustment (Note)
Note: General and administrative expenses that are not part of any business segment
10
【Numerical Plan 】 Capital Expenditures, Depreciation, R&D Expenditures
(Million yen)
2012-2016 Plan
(Five years)
2011
Amount
Capital Expenditures
Pharmaceuticals
Real Estate
Pct.
Amount
4,300
100.0%
29,500
100.0%
2,980
69.3%
6,000
20.3%
650
15.1%
20,000
67.8%
*1
2012-2016 Plan
(Five years)
2011
Amount
Depreciation
Pharmaceuticals
Real Estate
Pct.
Amount
100.0%
15,500
100.0%
1,270
50.0%
6,000
38.7%
860
33.9%
7,500
48.4%
Amount
2012-2016 Plan
(Five years)
Pharmaceuticals
Pct.
3,420
100.0%
3,130
91.5%
Amount
*2
《Capital expenditures》
*1
3-1 Kyobashi Project (tentative
name), Saitama Shintoshin
Ekimae Company Land Phase 2
Development, Matsumoto
company land development, and
other projects
Pct.
2,540
2011
R&D Expenditures
Pct.
Pct.
17,500
100.0%
14,500
82.9%
《R&D expenditures》
*2
Clinical trial expenses for the
new drugs TY-0201 and TY-51924
and other activities
*3
Studies and research expenses
for creating new businesses
11
3. Fundamental Strategy
12
【Fundamental Strategy】
Transform Katakura into a Growing Business
➢ Aim to become No. 1 in targeted domains by meeting diversifying customer needs
➢ Build a stronger profit structure by reexamining our current businesses
and shifting resources to growing businesses
➢ Target opportunities in the markets of emerging countries
Create new businesses
➢ Leverage synergies across our current businesses to create new businesses
➢ Supply innovative products and services by meeting people’s latent needs in order to create growing businesses
➢ Use a long-term perspective to create activities that can become the new core businesses of Katakura Group
Textiles
Machinery
Pharmaceuticals
Senior Care and Welfare
Community Services
Nursing care apparel, welfare
equipment
Region-specific community
services
Others
Real Estate
Environmental Products
and Services
Specialty vehicles, environmental equipment,
agricultural devices
Healthy Living
Health foods, beauty care
products
13
4. Business Segment Strategies
14
【Business Segment Strategies】 Textiles
Strategic goals
➢ Become a manufacturer of value-added inner
wear that contributes to good health and beauty
➢ Establish a position as a manufacturer of
industrial materials
➢ Increase sales in overseas markets
(Million yen)
2011
Forecast
2016
Plan
11,500
12,000
500
Operating income
50
500
450
Operating margin
0.4%
4.2%
3.8p
Net sales
Increase vs.
2011
Strategic initiatives
1.
➢
➢
2.
3.
4.
Strengthen lineup of functional products for reducing fatigue, improving comfort and other
benefits
Increase the inventory turnover ratio and improve logistics efficiency
Develop new functional materials and develop applications for fire-resistant fibers
Start selling textile products in other countries, mainly in Asia
Major activities
Apparel Business
◆ Planning, manufacturing and sale of underwear, socks
and other apparel products; manufacturing in Vietnam
for more than 20 years; brand licensing
〔Apparel business〕
◆ Planning, manufacture and sale of underwear, aprons
and home wear using well-known brands
〔Ogran Japan Co., Ltd.〕
◆ Manufacture and sale of foundation undergarments
〔Kafulas Co., Ltd.〕
◆ Manufacture and sale of water-soluble fibers
(leading producer of water-soluble fibers),
fire-resistant fibers and other functional fibers
〔Nichibi Co., Ltd.〕
Ogran Japan Co., Ltd.
Kafulas Co., Ltd.
Nichibi Co., Ltd.
15
【Business Segment Strategies】 Pharmaceuticals
2011
Forecast
2016
Plan
18,200
22,000
3,800
Operating income
1,850
2,400
550
Operating margin
10.2%
10.9%
0.7p
Strategic goals
➢ Become a pharmaceutical company
specializing in the cardiovascular field
➢ Make ischemia and arrhythmia the two core
categories within this field
(Million yen)
Net sales
Increase vs.
2011
Strategic initiatives
1. Establish an R&D framework that can consistently launch new drugs
2. Increase market share by establishing internal sales operations for the cardiovascular category
3. Increase the product lineup by acquiring rights to sell products of other companies
Major activities
◆Manufacture and sale of prescription drugs (leading producer of ischemic heart disease drugs and nitrates) 〔Toa Eiyo Ltd.〕
Drug absorbed by the skin to treat
ischemia
Frandol® Tape 40mg
Japan’s first heart disease drug tape
SMN tablets for treatment of angina
pectoris
Itorol® Tablet 10mg, 20mg
Oral drug for prevention and treatment
of angina pectoris
Treatment for arrhythmia
Pronon® Tablet
100mg,150mg
Drug for treatment of fast arrhythmia
Drugs that physicians
know they can trust
16
【Business Segment Strategies】 Pharmaceuticals（Pipeline）
Timetable
Project
New drug (TY-0201)
Drug absorbed by
skin to reduce blood
pressure
New drug (TY-51924)
Myocardial
protection drug
2011
Completed
Phase III
2012
Approval
Application for
examination
approval
Phase II
2013
2014
2015
2016
Expected Expected start
of sales
approval
Phase III (undecided)
Research Centers and Factories
（Fukushima Research Center)
Pharmacology/efficacy, safety
(Drug Production Technology Research
Center)
(Sendai Factory)
Volume production of
major products
・ Drug Technology Center
・ Synthesis Technology Center
Synthesis to drug production
(Tokyo Research Center)
Drug discovery, efficacy
assessments, clinical
development
(Fukushima Factory)
Production of many drugs
in small quantities, drug
improvements and other
activities in association
with research programs
17
【 Business Segment Strategies】 Machinery
2011
Forecast
Strategic goals
➢ Establish an environmental equipment
manufacturing and sales business alongside the
current fire engine and other businesses
➢ Increase sales in overseas markets
(Million yen)
2016
Plan
Increase vs.
2011
8,500
9,200
700
Operating income
0
250
250
Operating margin
－
2.7%
－
Net sales
Strategic initiatives
1. Combine technologies from current businesses to develop environmental equipment associated
with cleansing and cleaning
2. Use fire engine fixture technology to develop distinctive environmental vehicles in order to
enlarge the product lineup
3. Improve fire engine performance and increase sales of firefighting equipment and other products.
4. Start selling machinery products in other countries, mainly in Asia
Major activities
Nihon Kikai Kogyo Co., Ltd.
◆ Manufacture and sale of fire engines (2nd largest
supplier in Japan) 〔Nihon Kikai Kogyo Co., Ltd.〕
◆ Manufacture and sale of automotive parts,
industrial valves, industrial cleansing equipment
and other products; import and sale of petroleum
products 〔Mechatronics Business〕
◆ Manufacture and sale of agricultural equipment
Mechatronics Business
for growing rice and other crops and for fruit
orchards 〔Katakura Kiki Kogyo Co., Ltd.〕
Katakura Kiki Kogyo Co., Ltd.
18
【Business Segment Strategies】 Real Estate
2011
Forecast
Strategic goals
➢ Concentrate on community-creation projects
that can increase the value of company-owned
land
(Million yen)
2016
Plan
Increase vs.
2011
Net sales
6,600
10,000
3,400
Operating income
1,800
2,500
700
Operating margin
27.3%
25.0%
( 2.3p)
Strategic initiatives
1. Make large projects using company-owned land the main component of real estate operations
2. Give shopping centers a fresh look to maintain consistency of earnings
Major activities
◆ Shopping center operations, real estate leasing
〔Shopping Center Business〕
◆ Development and use of company-owned land
〔Real Estate Development Business〕
(Omiya Golf Center)
(Katakura Fukuoka Silver Residence)
(Cocoon Shintoshin)
(Kazo Katakura Park)
(Matsumoto Katakura Mall)
(いわきカタクラ
フィラチャー)
19
【Business Segment Strategies】Real Estate（Development of company-owned land）
3-1 Kyobashi Project (tentative name)
Timetable
2011
Project
3-1 Kyobashi Project
(tentative name)
Saitama Shintoshin
Stage 2
Development
M atsumoto
Company Land
Development
2012
Construction
2013
2014
2015
2016
Completion
in March
Establish development plan, constructionCompletion by
end of 2014
Develop adjacent sites in stages; plan to complete
reconstruction of Matsumoto Katakura Mall by fall of 2016
Completion
in fall of
2016
Saitama Shintoshin Stage 2 Development
(yellow area)
Major Projects
《3-1 Kyobashi Project (tentative name)》
Use
Offices, stores, meeting space, medical facility, child care facility, parking, others
Land area
About 8,130 square meters (about 908 square meters owned by Katakura)
Floor space/site ratio
１,２９０％
Floor area
About 117,000 square meters
Structure
24 floors, 4 underground levels, height about 125 meters
JV partners
Katakura, Kyobashi Development Special Purpose Company, Dai-ichi Life Insurance, Shimizu Jisho,
Kyobashi 3-Chome Special Purpose Company, J&S Insurance Service
Matsumoto Company Land Development
《Saitama Shintoshin Stage 2 Development (yellow area)》
Current use
Ito-Yokado Omiya store, Katakura Golf Center, New Life Katakura Omiya store, jointly used parking
facility
Land area
About 68,000 square meters
《Matsumoto Company Land Development》
Current use
AEON Higashi-Matsumoto store, Bioscience Research Center, Smile Hotel Matsumoto, Katakura
company housing, parking facility
Land area
83,600 square meters *total of four sites
20
【Business Segment Strategies】 Others
Home Improvement Centers
Provide products and services that closely match needs of
local customers
＜ Major activities＞
◆ Home improvement centers in Fukushima, Saitama (2
locations) and Yamanashi prefectures
◆ Each store has its own merchandise selection to match
characteristics of the local market
Bioscience Research Center
Use technology for raising honeybees to expand the bee business
＜ Major activities＞
◆ Production and sale of pollinating insects (hybrid honeybees)
Developed Japan’s first product exclusively for pollination
◆ Production and sale of honey
High-quality honey from carefully chosen locations in Japan with honey
collected only during specific times of the year and day
◆ Manufacture of the herbicide Harmomate
Antibacterial agent is sodium bicarbonate (baking soda), a food ingredient
that is not hazardous to people or the environment
Katakura Caron Service Corp
Increase range of building cleaning and maintenance services for shopping centers, office buildings,
condominiums and other buildings
＜ Major activities＞
◆ Cleaning, plant care and other building maintenance services; cleaning and maintenance contracts at
about 50 locations nationwide, mainly at shopping centers
(Million yen)
2011
Forecast
2016
Plan
Increase vs.
2011
Net sales
4,200
4,600
400
Operating income
(100)
150
250
Operating margin
－
3.3%
－
21
【Business Segment Strategies】 New Businesses
“Seeds of Growth” new idea
campaign for all employees
Hold fusion study conference
with participation of all
business categories
Establish New Business
Office
Enter new fields by pursuing
dispersion (diversification) and
fusion (more powerful
synergies)
Senior care and
welfare
Environmental products
and services
Specialty vehicles,
environmental equipment,
agricultural devices
Nursing care apparel,
welfare equipment
Community
services
Region-specific community
services
Healthy living
Health foods, beauty care
products
22
(Million yen)
【Business Segment Strategies】 New Businesses
2016 Plan
Senior care and welfare
Develop and manufacture senior care products (nursing care apparel, welfare
equipment, etc.), start senior care/welfare businesses
Start nursing care and welfare businesses
Net sales
3,200
Operating income
150
Operating margin
4.7%
➢ Use textile processing technologies to develop and manufacture
nursing care and textile products that meets customers’ needs
➢ Use machinary processing technologies to develop and manufacture welfare equipment that is helpful to
nursing-care patients and caregivers
Community Services
Create community service businesses that match the needs of particular regions
➢ Create community businesses that allow people to enjoy nature and dietary education
➢ Conduct businesses that promote local consumption of locally produced foods in order to supply safe and
value-added food products
Environmental Products and Services
Start the manufacture and sale of environmental equipment and vehicles and agricultural devices
➢ Develop environmental equipment associated with cleansing and cleaning
➢ Develop environmental service vehicles to expand the lineup of specialty vehicles beyond fire engines
➢ Start plant factory and other agricultural businesses
Healthy Living
Use silk and bee raising technologies to start supplying health food and beauty care products
➢ Start a full-scale health food business by selling royal jelly, propolis and other products
➢ Enter the beauty care market by developing products that incorporate silk
23
5. Employees/Dividends
24
【Upgrade Employee Training and Development】
Train people to become
managers with outstanding
communication know-how
and the skills to be strong
leaders
Develop a team of
professionals who can
realize their full
potential by providing
training involving
technologies and other
specialties
Train people in each
business segment who
can succeed in global
markets
Achieve the goals of “Katakura 2016”
25
【Dividends and Dividend Policy】
Dividend per Share
2011 Dividend
2012 Dividend Forecast
¥10
Ordinary dividend
¥10
Ordinary dividend
The basic policy for allocating earnings is to pay a consistent and stable dividend to
shareholders while taking into account results of operations as well as the need to
fund upcoming business operations and maintain sufficient retained earnings.
Dividends and Net Income
5,000
12
Net Income
10
4,000
8
3,000
6
2,000
4
1,000
2
0
0
- 1,000
2006
Net income (Million yen)
Dividend (Yen)
Dividend
Dividend
Net income
(Million yen)
2006
2007
2008
2009
2010
2011
Forecast
Net income
(Million yen)
2008
¥8
¥10
¥10
1,444
1,887
1,015
2009
Dividend
2007
2010
2011
Forecast
¥10
¥10
¥10
(781)
3,985
1,350
26
【Disclaimer】
◆
Sales and earnings forecasts and other forward-looking statements
in this document are based on the economic forecast and other
current assumptions. These statements are not guarantees or
promises regarding future performance. Furthermore, forecasts may
be revised at any time without prior notice.
◆
Katakura has exercised care to be certain that all information in this
document is correct. However, Katakura assumes no responsibility
whatsoever for any errors in this information.
【Contact information】
Keiji Akashi
Manager, Corporate Planning Division, Corporate Planning Dept.
Katakura Industries Co., Ltd.
URL:
http://www.katakura.co.jp/
E-mail:
[email protected]
Address: 6-4 Akashi-cho, Chuo-ku, Tokyo 104-8312
Tel:
03-6832-0221
Fax:
03-6832-0282
27