SoftBank’s acquisition of Vodafone Japan – in combination with having developed YAHOO-Japan into the leading internet service company in Japan – enabled SoftBank to become a key global player in mobile communications.
Masayoshi Son: unreciprocated love for ARM for 10 years
In the Nikkei interview of 3 September 2016, Masayoshi Son explains that he had an “one-sided / unreciprocated love for ARM” for at least 10 years, but decided to acquire SPRINT first. After acquiring SPRINT he had to pay down debt before being able to acquire ARM now.
ARM Holdings plc
ARM was founded on 27 November 1990 as Advanced RISC Machines, however the abbreviation ARM was first used in 1983 and initially meant “Acorn RISC Machines”.
Acorn Computers Ltd was founded in 1978 in Cambridge (UK) by Hermann Hauser and Chris Curry to produce computers, and its most famous product was the BBC Micro Computer.
ARM has built an ecosystem of IC design systems and platforms which are at the core of low energy consumption ICs and CPUs for smartphones and many other electronic devices and cars. ARM may become or already is one of the core technology companies for the Internet of Things (IoT).
SoftBank’s ARM Business Department’s name changed to “New Business Department”
On 3 September 2016 SoftBank announced that the name of SoftBank’s ARM Business Department has been changed to SoftBank New Business Department.
Preview – SoftBank today and 300 year vision report:
Toray acquires Delta-Tech: 55% of Italian fiber manufacturer Delta-Tech SpA including Delta-Preg SpA
Toray management program Project AP-G 2016: “thorough implementation of growth strategy through innovation and aggressive management”
Toray acquires Delta-Tech: acquires 55% of outstanding shares of the Italian prepreg manufacturer Delta-Tech SpA including the fully owned subsidiary Delta-Preg SpA.
Delta-Tech SpA and Delta-Preg SpA
Delta-Tech SpA was founded in 1999 for products in the composite materials industry.
Delta-Tech product groups include:
fabrics: woven carbon, multi axial stitched carbon, woven glass…
UD tapes: HS carbon fiber, IM carbon fiber etc
Kordo: pre-formed edging system
SIMS: Semi-impregnated micro-sandwich, laminates based on the use of non-woven needle punched fabrics with micro-sandwich structures. Applications are automotive body panels and personal protection equipment
Delta-Preg SpA was founded in 2001 and manufactures textiles.
Pre-Preg are pre-impregnated composite fibers with a matrix material such as epoxy.
Toray’s medium term management program “Project AP-G 2016” (from April 2014 to March 2017)
Consolidated net sales: YEN 2.3 trillion (US$ 23 billion)
Consolidated operating income: YEN 180 billion (US$ 1.8 billion)
Toray’s long term vision “AP-Growth TORAY 2020“: become “a global top company of advanced materials”
AP-Growth TORAY 2020 is a unified growth map for the next 10 years based on Toray’s corporate vision of “contributing to society through the creation of new value with innovative ideas, technologies and products”.
Key KPI’s for AP-Growth TORAY 2020 (to be achieved around 2020)
consolidated net sales: YEN 3 trillion (US$ 30 billion)
Consolidated operating income: YEN 300 billion (US$ 3 billion)
Operating income margin: 10%
Toray Industries, Inc. (東レ株式会社) “Innovation by chemistry” (化学による革新と創造) (TSE 3402, LSE TKK)
Toray Industries, Inc. (東レ株式会社) was founded on 12 January 1926 with an investment by Mitsui Bussan. The company was incorporated as Touyou Rayon (東洋レーヨン) on 16 April 1926.
In 1970 the company name was changed to Toray KK (東レ株式会社). Toray is the abbreviation of Touyou Rayon (東洋レーヨン).
Toray’s main business are:
fibers and textiles
plastics and chemicals
IT related products: films, color filters, products for IC production, graphics materials
carbon fiber composites
environment and engineering: water treatment membranes, materials for housing, environmental equipment
other: analysis, research related services
Toray builds integrated supply chain in Europe
Through a program of acquisitions, Toray is building an integrated supply chain in Europe:
Delta-Tech SpA and Delta-Prepreg SpA
Saati SpA’s European carbon fiber fabric and prepreg business, renamed: Composite Materials (Italy) S.r.l., (CIT)
Alcantara S.p.A.: Trading activities, manufacture and marketing of ALCANTARA®, unique covering material
Toray Carbon Fibers Europe S.A. (CFE): polyacrylonitrile (PAN) precursor
Toray Films Europe S.A.S. (TFE)
Toray Textiles Central Europe s.r.o. (TTCE)
Euro Advanced Carbon Fiber Composites GmbH (EACC): Manufacture and marketing of CFRP parts and components for automobile
ACE Advanced Composite Engineering GmbH (ACE)
Toray International Europe GmbH (TIEU)
Toray Resins Europe GmbH (TREU): Import and sales of resin products
Greenery GmbH: Development, manufacturing, and sales of fuel cells and water electrolysis components
Toray Membrane Spain S.L. (TMSP): Marketing and consulting of water treatment membranes
Toray Membrane Europe AG (TMEu): Importing and Sales of RO membrane element, UF/MF hollow fiber membrane module, and submerged module of flat sheet membrane
Toray International U.K. Ltd. (TIUK): trading
Toray Textiles Europe Ltd. (TTEL): Weaving and dyeing of polyester filament textiles
Nikon diversifies from digital cameras to medical imaging
Retinal imaging market estimated to grow to US$ 530 million in 2019
Currently 70% of Nikon’s business are digital camera, a rapidly shrinking market due to the popularity of smartphone cameras.
Inspired by SONY‘s investment in medical imaging company Olympus, Nikon diversifies from digital cameras into medical imaging, acquiring the Scottish retinal imaging company Optos plc – “The retina company”.
Nikon is reported to have approached Optos plc in December 2014, but seems to have been rejected.
On February 27, 2015, NIKON Corporation and Optos plc jointly announced the agreement for a recommended cash offer my by NIKON for the entire issued and to be issued share capital of Optos. Details can be found on NIKON’s official website for the Optos offer, where NIKON essentially offers a total of UKL 250.48 million (US$ 387 million) for all shares of Optos.
Optos plc was founded by Douglas Anderson in 1992 after his son became blind on one eye, because his retina detachment was diagnosed too late.
Optos plc had IPO on the London Stock Exchange in February 2006. Market capitalization on February 27, 2015 was UKL 250.48 million (US$ 387 million), jumping from approx. UKL 191 million (US$ 295 million) on February 26, 2015.
Optos has a market share of about 30% of the global market for retinal imaging. The global market size of devices for retinal imaging is growing and estimated to become US$ 530 million in 2019.
Horizon 2020 Japan conference encourages Japan participation in this R&D and innovation program of the EU
Horizon 2020 Japan: Ambassador Hans Dietmar Schweisgut, welcome
Horizon 2020 Japan – Yoichiro Matsumoto: Japan’s research needs to go global
(Professor Yoichiro Matsumoto, Executive Vice President, The University of Tokyo)
Recent situation in Japanese Universities
Japan has shown a lower growth in the publication of papers compared to other countries
Quantity: growth rate of number of papers for the period 2009-2011 compared to 1999-2001:
China: +360% growth
USA: +28% growth
Germany: +28% growth
UK: +21% growth
France: +28% growth
Japan: +3% growth
World: +48% growth
Quality: top 10% of papers during the period 2009-2011 compared to 1999-2001:
China: +521% growth
USA: +26% growth
Germany: +68% growth
UK: +57% growth
France: +61% growth
Japan: +16% growth
World: +51% growth
Quality: top 1% of papers during the period 2009-2011 compared to 1999-2001:
China: +692% growth
USA: +28% growth
Germany: +99% growth
UK: +79% growth
France: +99% growth
Japan: +39% growth
World: +51% growth
Japanese Universities have suffered a long term budget cut for ordinary operations lasting more than 10 years
the ratio of competitive funds have increased rapidly
we must change ourselves towards strategic thinking and planning for research, its funding and sustainability
The Science and Technology budget in Japan has been increasing rapidly until 2002, but is stagnating since 2002.
Why is international cooperation in research important
scientific output has grown rapidly and collaboration between institutions in different countries has intensified.
International collaboration papers are likely to get more citation impact.
The challenges facing Japanese research institutions – strategic competition and collaboration
we need strategic competition and collaboration among Japanese research institutions for the management to increase their reputation and visibility globally
each institution must be more competitive in human and institutional resources, research funds, facilities, student quality, educational performance, global openness, clear vision, efficiency of management…
unders those severe and open competition, we can make win-win relations among institutions
we need a long-term and bird-view thinking to enhance the sustainability of research and eduction activities in the institution
we need global collaboration
create sustainable environment for research institutions: secure enough domestic funds for research, get international R&D funds like Horizon2020, enhance the mobility of research
boost international exchanges between European institutions and Japanese institutions
create network of networks between institutions to discuss our common problems and enhance our activity of research and education
The Royal Society 2011: “collaboration enhances the quality of research, improves its efficiency and effectiveness, and is increasingly necessary as the scale of budgets and research challenges grow”
Horizon 2020 Japan – Anders Karlsson: EU-Japan Science collaboration – a “bird’s eye view” on publication patterns & opportunities for collaboration
(Professor Anders Karlsson, Vice President for Global Academic Relations, Elsevier, Tokyo)
Compound annual growth rate of scientific publications 2009-2013:
EU28: +4.9% growth
USA: +4.5% growth
China: +10.5% growth
Korea: +9.5% growth
Japan: +1.1% growth
world: +4.4% growth
What about the top 10% most cited publications?
China overtook Japan for all articles: in 2003/2004
China overtook Japan for top 10% articles: in 2006
China overtook Japan for top 10% articles in Engineering: in 2003
China overtook Japan for top 10% articles in Medicine: in 2010
Horizon 2020 Japan – Maria Cristina Russo: Horizon2020 – the chance to go global
(Maria Cristina Russo, Director for International Cooperation, Directorate-General for Research and Innovation, European Commission)
Why go global? Why collaborate internationally?
all science has become global
value chains are internationalized: making alliances, sharing costs, accessing markets, agreeing standards
need to address global society challenges together
importance for the best EU researchers to cooperate with the best Japanese researchers
opportunities for Japanese researchers to participate, and to access big projects with important partners from EU and the world by only paying your researchers
importance of building networks: deep relationships with EU and world actors through R&D collaboration
Why chose the EU to “go global”?
500 million people, 28 countries, a single market = free movement of people + goods + services + capital
7% of the world’s population
24% of world research expenditure
32% of high impact publications
32% of patent applications
Some excellent successes:
109 “bottom up” participations by 50 different Japan based organizations in 79 FP7 projects
5 “top down” jointly designed “coordinated calls” resulting in an additional 17 projects (ICT, aeronautics, energy, critical raw materials)
successful “support actions”, e.g. CONCERT-JAPAN
Top down coordinated calls:
top down: joint identification of key priority areas by EU and Japanese authorities
parallel call procedure, parallel evaluation, separate funding – but joint work and joint results
worked particularly well in Japan: 5 calls 2011-2013, 17 projects jointly financed, 2 more calls launched or in the pipeline
Unfulfilled potential – participation in EU projects – EU-Japan projects lower than Egypt or Marocco….
South America: 222
Some key questions:
why is overall Japanese participation in EU research programs so modest compared with key international partners?
what can be done to improve participation of Japanese research entities (public and private) in the future?
what are the bottlenecks and obstacles?
what are the best approaches? top down? or bottom up?
Horizon2002: a paradigm shift
Globally the biggest research and innovation funding program: over EURO 80 billion budget over 7 years
The only part of the EU budget to increase (+30% over the previous program)
the most open program in the world, international cooperation at its core
challenge based approach, multi sector activities to address global society challenges
stressing innovation: from lab to market
faster, simpler, less red tape
Three ways to participate:
General opening: any international partner may participate
Targeted opening: in specific topics in calls for proposals including of international partners may be: (a) encouraged, (b) required
Coordinated calls: used for specific actions, paired calls, linked evaluations, two separate contracts
How to get involved?
find a relevant call
submit a proposal
Horizon 2020 Japan – Kazushi Watanabe: Experience of international collaboration. FP7 project: Surface heat exchangers for aero-engines
(Kazushi Watanabe, General Manager, Business Development, Sumitomo Precision Products, Aerospace & Defense)
EU-Japan collaboration project: Advanced Structural Surface Cooler (ASSC), a component for turbines.
EU funded the research at INEGI (Instituto de Engenharia Mecanica Gestao), Rolls-Royce, GKN Aerospace Sweden AB, SICOMP (Swerea Sicomp AB)
METI funded research at Sumitomo Precision Products (SPP), and SPP subcontracted part of the research to the University of Tokyo
In addition there is a Research agreement between Rolls-Royce and SPP
One attraction of this research project for SPP is that there are not many turbine manufacturers in Japan, and this research project opened new markets for SPP products.
Naoto Kobayashi: FP7 project and internationalization of research at Waseda University
(Naoto Kobayashi, Center for Research Strategy, Waseda University)
FP7 projects at Waseda University:
Capsil Project (April 1, 2008 – March 31, 2010)
International support of a common awareness and knowledge platform for studying and enabling living
Professor Shuji Hashimoto (Faculty of Science and Engineering), 理工学術院 橋本周司教授
Total budget: EURO 587,150
RoboSoM Project (December 1, 2009 – May 31, 2013)
A Robotic Sense of Movement
Professor Atsuo Takanishi (Faculty of Science and Engineering), 理工学術院 高西淳夫教授
Total budget: EURO 1,659,000
GR:EEN Project (March 1, 2011 – February 28, 2015)
Global Re-ordering: Evolution through European Networks
Professor Shujiro Urata (Faculty of International Research and Education), 国際学術院 浦田秀次郎教授
Total budget: EURO 7,944,718
Yoichi Iida, Japan-EU cooperation in civil aeronautics industry
(Yoichi Iida, Director, Aerospace and Defense Industry Division, Manufacturing Industries Bureau, METI)
Agreement between the Government of Japan and the European Community on Cooperation in Science and Technology.
1st Working Group
SUNJET, concluded in October 2012
Call 5 Projects: SHEFAE, JEDI ACE and HIKARI to concluded early 2016
March 2014: 2nd working group: discussion on next cooperation projects
NEXT Projects (Horizon2020)
Future Projects (support action)
Lessons learnt from FP7:
Complicated framework of agreements: IP treatment between Japanese companies and European Commission, dispute settlement process
different timing of budgets
For Horizon2020 the structure of cooperation projects will be:
Grant agreement between the Japanese Government and Japanese participants
Grant agreement between the European Commission and European participants
Coordination agreement between Japanese participants and European participants
Horizon 2020 Japan – Satoru Ohtake: closing remarks
(Satoru Ohtake, Senior Executive Director, Science and Technology Agency)
Landis+Gyr to become “independent growth platform” within the Toshiba Group for smart meters and smart grid
Landis+Gyr acquired by Toshiba (60%) and Innovation Network Corporation of Japan (40%) for US$ 2.3 billion
Landis+Gyr acquired by Toshiba and The Innovation Network Corporation of Japan: this acquisition was finalized with a shareholder’s and share purchase agreement between Toshiba and INCJ and Landis+Gyr, announced on 25 July 2011.
Initially, on 19 May 2011, Toshiba had announced the 100% acquisition of Landis+Gyr by Toshiba alone for US$ 2.3 billion including assumption of debt. Apparently, The Innovation Network Corporation of Japan entered this partnership sometime between May and July 2011 as an additional investor.
Toshiba established a Special Purpose Vehicle (SPV):
Toshiba invests: US$ 1.02 billion corresponding to 60% of equity
INCJ invests: US$ 0.680 billion corresponding to 40% of equity
In addition, Toshiba assumed Landis+Gyr’s net debt of US$ 600 million, thus the total cost to Toshiba is:
60% equity in SPV: US$ 1.02 billion
assumption of Landis+Gyr net debt: US$ 0.6 billion
total acquisition cost to Toshiba: US$ 1.62 billion
The Innovation Network Corporation of Japan (INCJ) invested US$ 680 million into this SVP, acquiring 40% of the SVP’s equity.
Landis+Gyr – “manage energy better”
Landis+Gyr was founded in 1896 as Elektrotechnisches Institut Theiler & Co in Zug, Switzerland by Richard Theiler. In 1904, Richard Theiler appointed the engineer Heinrich Landis as his successor. Heinrich Landis partnered with Dr. Karl Heinrich Gyr in 1905, and the company changed its name to Landis & Gyr in 1905.
In 1998 Landis & Gyr was acquired by Siemens, and then again spun out in 2002 with the new version of the company name: Landis+Gyr.
Landis+Gyr produces smart meters, smart grid equipment and related technology and services, with the mission to “manage energy better”.
Landis+Gyr’s customers are mainly energy, gas and electricity utility companies throughout the world for their smart meter and smart grid networks.
The Innovation Network Corporation of Japan (INCJ)
The Innovation Network Corporation of Japan (INCJ) is an investment fund established on 27 July 2009 as a public-private partnership between the Japanese Government and 26 major Japanese corporations temporarily for 15 years.
Capitalization: YEN 300 billion (=approx US$ 3 billion)
Japanese Government: YEN 286 billion
26 corporations: YEN 14 billion
Japanese Government guarantees: YEN 1800 billion (=approx US$ 18 billion)
Total investment capability: YEN 2100 billion (=approx US$ 21 billion)
INCJ has made a range of investments, the largest investment (YEN 200 billion = approx. US$ 2 billion) is in Japan Display.
In addition to the Japanese Government, 26 investors (total YEN 14 billion) are: