Medium-Term

Management Plan 2019

（Plastics Machinery Division）
June 5, 2017

Senior Vice President,

General Manager, Plastics Machinery Division
Kazuo Hiraoka
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 June 5, 2017

INDEX

00
About Plastics Machinery Division

01 Summary of “Medium-Term
Management Plan 2016”

02 Overview of “Medium-Term
Management Plan 2019”

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 June 5, 2017

About
00 Plastics Machinery Division

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00 About Plastics Machinery Division

Plastics machinery Chiba works

division Injection molding machine / Sealing press machine

Sumitomo Heavy Industries Modern, Ltd. Film lines

Sumitomo (SHI) Demag Plastics Machinery GmbH

Injection molding machine

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 June 5, 2017

00 About Plastics Machinery Division

Plastics machinery division (Injection molding machine / Sealing press machine / Mold)
◆Injection molding machine ◆Sealing press machine ◆Mold

Sumitomo Heavy Industries Modern, Ltd. (Film lines)

◆Extrusion coating line ◆Sheet line ◆Cast film line

Sumitomo(SHI)Demag Plastics Machinery GmbH (Injection molding machine)

◆Injection molding machine
In May 2017, released
ALL-electric Injection
New molding machine
New “IntElect”

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 June 5, 2017

01 Summary of “Medium-Term
Management Plan 2016”

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01 Summary of “Medium-Term Management Plan 2016”(MTMP16)

“Medium-Term
Establish a strong profit structure
Management Plan
and realize high-profit business
2016”

１．"A tireless commitment to improving operational quality"

２．"Promote higher profitability by having world-class products"
３．Enhance portfolio

MTMP16 Result of MYMP16

FY14 FY15 FY16 ・Plastics machinery division:

JPY
Sales declined in FY2016 mainly due to
billion Actual Actual Actual the slowdown of the Chinese market
・Demag*:
Sales 87.1 92.6 80.8 Increased market share through
a rise in sales of all-electric machines
・Modern*:
Sales increased due to strong market
conditions in Japan and Southeast Asia

* Modern =Sumitomo Heavy Industries Modern, Ltd.

Demag =Sumitomo(SHI)Demag Plastics Machinery GmbH

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 June 5, 2017

02 Overview of “Medium-Term
Management Plan 2019”

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 June 5, 2017
Key Priorities and MTMP Target
02 of the Injection Molding Machine Business

FY16 FY17 FY19

Target

Actual Plan Target

Net sales
JPY billion 80.8 85.0 95.0

 Sharing strategy with Demag

(Strengthen collaboration in the areas of sales,
Key priorities

after sales services and brand channels)

 Create competitive product portfolio
 Implement sustained levels of capital investments and
production reforms
 Modern：Expand strategy and sales area in the industrial
materials/ high performance film segments
 Develop talent globally; promote CSR activities

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 Market Conditions June 5, 2017

02 Demand for Injection Molding Machines

/The Japan Society of Industrial Machinery Manufacturers(JSIM) + EUROMAP

With regard to demand, both JSIM and EUROMAP are

forecasting a slight increase from 2016 onwards

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 SHI’s Status June 5, 2017

02 Number of Injection Molding Machines Delivered around the World

(as at the end of December 2016)

（Units）

The cumulative number of injection molding machines delivered around the world : 129,700 units
(of which are all-electric injection molding machines – approximately 60,000 units)

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Sales Composition Target – Injection Molding Machine
02 By region and industry / 2016 to 2019

 Plastics machinery division

Strengthen potential of overseas locations (sales, after sales services and tendering
By region

capabilities) and aim to expand orders from local customers

 Demag
Aim to increase sales by maintaining orders levels from stable demand environments
such as Germany and France; and to expand sales in recovering demand markets
such as Southern Europe; in growing markets such as newly joined EU countries and
in emerging markets by strengthen sales and after sales service capabilities

 Plastics machinery division

Implement enhancements in the industry segments of automotive and
By industry

packaging.

 Demag
Sales enhancements of new all-electric injection molding machines; sales
enhancements in the industry segments of packaging, electronics and
medical. (Aim to increase market share in the packaging segment and
all electric injection molding machines)

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 June 5, 2017
Sales Strategy
02 – Enhance and expand sales/service capabilities as well as Asia network

2014 － 2016
１
１ Open new offices
(China/Guangzhou・
Thailand etc.)
2 Open Technology Center １
(China/Suzhou・Vietnam etc.) １ 2
2
2
2

2017 – 2019
●China・Southeast Asia １
Increase proposal capabilities through
enhancements to the Technology Center
●Enhance after-sales services
Enhance service in Asia
(Myanmar ：from Thailand）
(Cambodia：from Vietnam) Existing sales service base

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Sales Strategy
02 – Enhance and expand sales/service capabilities as well as EMEA network
2014 － 2016
１ Expand scope of activities of distributors and increase responsiveness １ 2
2
Norway

2
Conclude agreements with distributors
Sweden
and increase responsiveness
Finland
3
3 Conclude new distribution agreements
Iran in emerging markets (expand scope of activities in the Middle East)
Establish local corporations and improve technology
4
proposing and servicing capabilities using
Hungary Austria Spain
a customer-centric approach

2017 – 2019
•In high-demand countries, establish local corporations and increase local
responsiveness to customers
•In emerging markets, conclude agreements with distributors and increase
local responsiveness to customers
•An international team has also been established in Germany with the aim to 4 4
enhance after sales service support levels for distributors located in countries
where demand is low as well as global companies with needs in such countries 4

Existing sales service base

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 Product Strategy June 5, 2017

02 – Injection Molding Machines

(Enhance line-up of all-electric injection molding machines)

-- Plastics Machinery Division developed Achieved consistency on

the all-electric injection molding machine -- corporate colors

SE-EV-A series
SE-DUZ/HDZ series SE-EV series 2015~
2008~ 2011~

-- Demag developed
the all-electric injection
molding machine --
New IntElect series
IntElect(smart) series 2017~
2009~
Collaborated on drive Moved towards common
technology specifications and design

Promote common approach for all-electric injection molding machines

through the SE-EV-A Series and the new IntElect Series of products

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 June 5, 2017
Product Strategy
02 – Injection Molding Machines (Strengthen IoT-related technologies)

Make smart factories Customer hosted PC/MES

Uniform management and iii-system Visualization of operating conditions

conditional calling of molding cells
iii-system
iii-system
Smart Smart
Machine Production
Smart
Factory

Traceability management
through the ability to carry out
Smart trend analyses on injection
Connectivity with Service molding machines and products
devices
iii-system

Troubleshooting
Scheduled maintenance based on through Tomenai.net
a good grasp of operating conditions

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02 Production Strategy
Strengthen production capacity

 Plastics machinery division

Activities to increase production efficiency:
Invest in line production / automation / improvements to logistics
Ability to visualize the production process
⇒ Shift towards smart factories
 Demag
Improve production capabilities through production equipment
enhancements / production layout changes and rebuilding of
production process
 Modern
Enhancement of core technology and production capacity by
expand plant and improve mold processing technology

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 June 5, 2017
“Medium-Term Management Plan 2019”
02 Sumitomo Heavy Industries Modern, Ltd.
Take steps towards achieving annual sales of JPY10 billion
Unit：JPY billion
through the expansion of the two markets
10

8
Pharmaceutical packaging
Shift towards the use of more plastic
Expand agricultural materials in automotive component manufacturing
materials market
6
Environmental response measures – Health and safety oriented
Inflation/cast
film forming High-performance films Multi-stratification and higher
performance of plastic films
Extrusion
Economic growth of the Asia region
laminate
processing/
bonding
Increase in demand
for building materials
Increase in demand and higher
performance of food packaging material Lithium ion batteries

 Sales from JPY6 billion to JPY8 billion ⇒ Achieve further growth

Modern

 Expand sales area / sale enhancements of the segment of

industrial materials and high performance film

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 June 5, 2017
“Medium-Term Management Plan 2019”
02 Sumitomo Heavy Industries Modern, Ltd.
Take steps towards achieving annual sales of JPY10 billion through
Expand on soft power and Improve core technologies and production capabilities
Unit：JPY billion
10

■Field responsiveness / promotion of pre-maintenance /

8 guidance on forming know-how / expansion of sales and
service network both in Japan and overseas
Expand R&D Center
6 (Multilayer casting / inflation test line) Expand on soft power
Support forming technology
(Forming technologies /
stretching technologies)

Expand plant /
improve mold process technology
Improve die-element technology /
Improve core technologies further increase energy
Pneumatic auto-T die (in house technology) / and production capabilities saving capabilities / aim for higher
Energy saving extrusion machine ■Join development with SHI precision of film forming

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All forward-looking statements regarding the company’s future performance are based on information
currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is
not guaranteed and all information related to future performance contained herein is subject to
changes in business environments.

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