Agc
- 2. Architectural Glass
Sales 358.9 bn yen
Business Overview
AGC Group (Net sales 1,522.9 billion yen, Operating profit 120.6 billion yen)
-Float flat glass
-Figured glass
-Polished wired glass
-Low-E glass
-Decorative glass
-Fabricated glass for architectural use
(Heat Insulating/shielding glass,
Disaster-resistant/Security glass,
Fire-resistant glass, etc.)
-Tempered glass
-Laminated glass
Automotive Glass
Sales 397.3 bn yen
-Vinyl chloride
-Vinyl chloride monomer
-Caustic soda
-Urethane
-Fluorinated resins
-Water and oil repellents
-Gases
-Solvents
-Iodine-related products
Fluorochemicals
& specialty chemicals
Sales 120.5 bn yen
Chlor-alkali & urethane
Sales 316.6 bn yen
-Semiconductor process materials
-Optoelectronics materials
-Lighting glass products
-Laboratory glass, etc.
Display
Sales 183.4 bn yen
Electronic Materials
Sales 66.9 bn yen
-LCD glass substrates
-Specialty glass for display applications
-Cover glass for car-mounted displays
-Display related materials
-Glass for solar power system
-Fabricated glass for
industrial use
For the fiscal year ended December 31, 2018
-Ceramic products
-Logistics and financial
services, etc.
Ceramics/Other
Sales 79.0 bn yen
OP 2.8 bn yen
Glass
Sales 757.5 bn yen
OP 22.5 bn yen
Chemicals
Sales 484.4 bn yen
OP 71.1 bn yen
Electronics
Sales 252.6 bn yen
OP 24.0 bn yen
©AGC Inc.
Life Science
Sales 44.9 bn yen
-Pharmaceutical
and agrochemical
intermediates and
active ingredients
(including biopharmaceuticals)
* Sales figures of the sub-segment presents the “sales to external customers”.
* The figures of Sales and Operating income of each segment are before eliminations; therefore, the sum of
Sales and Operating income of business segments differs from the total AGC Group’s Sales and Operating
income.
2
- 3. Net sales:1,522.9 billion yen OP:120.6 billion yen Group Employees: 54,000
-Architectural Glass
-Automotive Glass
-Electronic Materials
-Fluorochemicals
-Life science
-Architectural Glass
-Automotive Glass
-Fluorochemicals
-Life science
-Architectural Glass
-Automotive Glass
-Display Glass
-Electronic Materials
-Chlor-alkali & Urethane
-Life science
-Ceramics
※Sales and operating income by region are before eliminations and cross regional expenses, therefore, the total amounts of sales and
operating income for geographic segments do not agree with total sales and operating income of the AGC Group.
Japan / Asia
Sales:1,005.7 bn yen
OP: 138.3 bn yen
Employees: 32,000
The Americas
Sales: 166.3 bn yen
OP: 6.7 bn yen
Employees: 5,000
Europe
Sales: 351.0 bn yen
OP: 16.2 bn yen
Employees: 17,100
Results of FY2018
Global Operation
©AGC Inc. 3
- 4. Our
Shared
Values
AGC, an everyday essential part of our world
-AGC’s unique materials and solutions make people’s
lives better around the world every day-
Innovation & Operational Excellence
Diversity
Environment
Integrity
“Never take the easy way out, but confront difficulties”Our
Spirit
Our
Mission
Group Vision "Look Beyond"
©AGC Inc. 4
- 5. AGC Group’s long-term strategy
“Vision 2025”
Establishing long-term, stable sources
of earnings through the portfolio
management
・Architectural glass
・Automotive glass (existing)
・Essential chemicals
・Performance chemicals
・Display glass
・Ceramics
Establishing highly profitable
businesses through expansion of high
value-added businesses
・Mobility
・Electronics
・Life science
Core businesses Strategic businesses
The AGC Group’s Core Businesses will serve as solid sources of earnings,
and Strategic Businesses will become growth drivers and lead further
earnings growth.
The AGC Group will continue being a highly profitable, leading global
material and solution provider.
©AGC Inc. 5
- 6. AGC plus-2020
Develop high-value added businesses that do not
get affected by market fluctuations
Promote growth strategies for strategic businesses
Concentrate management resources in growth
regions/where we can win
Achieve sustainable growth through strategic
M&As
AGC plus-2020 serves as the cornerstone toward 2025
©AGC Inc. 6
- 7. Key measures by business segment
Glass
【Architectural glass】
・Focus on growth regions/where we can win
・Promote highly functional glass for the upcoming smart-city era
【Automotive】
・Respond to needs for highly functional products designed for eco-friendly
cars/automated driving
Electronics
【LCD glass】
・Achieve a smooth shift of production to China/larger-size products and
further cost reduction
【Electronics】
・In semiconductor-related products & optoelectronic materials businesses,
get ahead of the times to provide differentiated products
Chemicals
【Chlor-alkali】
・In addition to maximizing the M&A impact, further expand the business
base, including capacity increase, in Southeast Asia
【Fluorine】
・Steadily capture niche global markets by taking advantage of AGC’s
unique technologies
【Life Science】
・Expand the business base by maximizing the effect of M&As
©AGC Inc. 7
- 8. Strategic Businesses
Highly profitable businesses with growth potential
Mobility Electronics Life Science
Arrival of IoT era Longer life expectancy
Evolution of transportation infrastructure Increase of global population
Building new eco-system Greater safety, security, comfort
【Changes in the macroscopic environment】
Connected cars/
Automated driving,
Evolution of information
display, Lighter-weight
transportation means
Arrival of IoT/AI era,
Next-generation high-
speed communications/
Automated driving, Use of
novel devices
Safe & secure medical
care, Longer life
expectancy, Increase of
global population
Strategic Businesses
©AGC Inc. 8
- 9. Strategic business: Mobility
Automated driving
Connected cars
Evolution of
information display
Eco-friendly
vehicles(EV)
AGC’s unique & diverse core technologies respond to
the need for more advanced functionalities.
Key phrases for next-generation glass
“Glass located at best place”
“Multi-function”
Radio wave
transmission
HUD
Transparent
screen
Sensor
Camera
V2X antenna
AM/FM/TV antenna
Big waves of change
Heater
Heat-shielding
Sound-proof
Highly
functional
glass
©AGC Inc. 9
- 10. Mobility
10
360° “user-friendly”
information display
- A wide range of advanced solutions for
information display
- Molding techniques enabling design
flexibility
(Display cover glass/Glascene™/HUD, etc.)
First in the glass industry to build
Global, tri-polar antenna R&D!
(Europe facility will be completed at the end of 2018)
Accelerate R&D for next-generation
“connecting” antennas
Automated driving
Connected cars
Evolution of
information display
©AGC Inc.
- 11. Electronics
11
Next-generation
high-speed
communications,
Automated driving
Use of novel devices
(AR/VR/drones, etc)
Sustainable growth of the electronics-
related markets
Semiconductor/sensor will be used in all
products in the world
Parts and materials will be required to have
more advanced functionality (lighter-weight,
greater strength, higher heat dissipation, superior
heatproof, lower loss, etc.)
EUV mask blanks
Infrared absorbing
glass filterArrival of IoT/AI era
Provide consumable materials, highly functional parts and
materials to the electronics parts/materials market that
continue growing
©AGC Inc.
- 12. FY2017 FY2018 FY2019e FY2020e FY2025e
20
12©AGC Inc.
EUVL mask blanks sales
Sales
fourfold
20 billion yen
or more
Sales target of
EUV mask blanks
10
18
30
FY2017 FY2018e FY2019e FY2020e
EUVL device shipments
Source:Created by AGC, based on ASML’s report from SEMICON Japan 2018.
Electronics
Semiconductor-related products
FY2025 40 billion yen
or more
(billion yen)
Market trend
・ Market will continue to grow, pushed by technology trend such as “low energy
consumption”, “downsizing”, “high-efficiency”, and “high durability”.
AGC’s outlook
・ Fourfold sales in FY2020 from FY2018, and to have 50% market share for EUV
mask blanks.
・Increase sales mainly in high-end consumables for other electronic materials such
as CMP slurry.
FY2020
40
- 13. Impregnation
technology
13©AGC Inc.
composite
Base
material
Inorganic filler
Adhesive fluorinated
resin
(Fluon+TM
EA-2000)
Example of AGC’s applications
Composite
technology
CCL manufacturing
Glass antenna
for buildings
On-glass antennas
for automotive
R2R
technology
Base station antenna
Acquired CCL
business of Park
Electrochemical
and Taconic
Market trend
Communication technologies continues to advance, such as 5G,
“super high-speed / higher capacity”, and “ultra-high-capacity connection”.
AGC’s
strength
・ AGC can satisfy the needs for “low loss CCL/ highly efficient” inorganic and organic
materials“.
・ AGC can offer its technology from base materials to finished products.
・ AGC has technology, human resources, and networks of business partners for
application development.
Electronics
-next-generation high-speed communication related products-
Antenna ≫ AGC’s technology + partners
= new value
60 billion or more
Sales target for next-generation
high-speed communication related products
Already contributing to OP
CCL ≫ can supply in any form
(base materials/technology/CCL)
Will contribute to OP
AGC’sbusinesssolutions
FY2025
- 14. Japan Europe/USA
Synthenic
pharmaceutical
Bio
pharmaceutical
FY2017 FY2018 FY2019e FY2020e FY2025e
14©AGC Inc.
Life Science
Sales of Life science business
(billion yen)
Market trend
・ Market of prescribed drug will be 1,070B USD (approx.120 trillion yen) in 2022,
and biopharmaceutical will account for 30% of the market.
・ CAGR in 2018-2024 is estimated to be 5% for synthetic pharmaceutical, and 9%
for biopharmaceutical.
AGC’s business
expansion
・ Continue to expand business globally by capacity increase and M&As.
CAGR
20%
Sales target for
Life science
AGC’s expansion for global operation
Chiba: Expand GMP
compliant synthetic
pharmaceutical
capacity tenfold
(from Oct 2019)
Spain: Acquired
Malgrat Pharma
Chemicals
(2019)
Chiba: New cGMP
compatible facilities for
mammalian cell
production
(from July 2019)
USA: Triples
biopharmaceutical
production capacity
(from July 2020)
Capacity
increase
M&A
Capacity
increase
Capacity
increase
65 billion or more
(previous: 60 billion)
FY2020 FY2025
100
65
44.9
36.7
100 billion
or more
- 15. Life science
15
・ Integrated businesses in Japan, United States and Europe as “AGC
Biologics” (Headquarter in Seattle, from January 2018 onward)
・ Further capacity increase at a plant in Europe (scheduled from 3Q 2018)
Started global, integrated management of AGC’s bioscience
business to provide high-quality services to customers
around the world
©AGC Inc.
- 16. Disclaimer
■This material is solely for information purposes and should not be
construed as a solicitation. Although this material (including the
financial projections) has been prepared using information we
currently believe reliable, AGC does not take responsibility for any
errors and omissions pertaining to the inherent risks and
uncertainties of the material presented.
■We ask that you exercise your own judgment in assessing this
material. AGC is not responsible for any losses that may arise
from investment decisions based on the forecasts and other
numerical targets contained herein.
Copyright AGC Inc.
No duplication or distribution without prior
consent of AGC Inc.
©AGC Inc. 16