Kuraray has a rich history

Consolidated Net Sales

Kuraray Group has been boldly transforming its business structure and steadily expanding its operations. This is illustrated by the two accompanying graphs, which cover from 1986 to latest fiscal year. The first graph tracks trends in the Group's net sales and operating income and the second shows the net sales composition ratio.

More specifically, as it moved forward to streamline its fiber and textile-related business amid an operating environment that had become increasingly severe, the Kuraray Group leveraged its proprietary technologies to achieve growth in its chemicals-related business.

The result of these efforts was that the proportion of Group net sales accounted for by fiber and textile products fell from around 70% circa 1988 to around 30% by 2006. In contrast, over the same period the amount accounted for by chemical product sales increased from 30% to 70% as the Group strengthened its business portfolio. Then, in October 2007, the industry category under which Kuraray shares are classified on the Tokyo stock exchanges switched from "Textiles" to "Chemicals," reflecting the Group's actual operations as a provider of specialty chemicals.

Over the course of its history, Kuraray has utilized strengths related to its proprietary technologies to introduce to the world new and unique products. In 1950, Kuraray became the first company to bring a PVA fiber based on domestic technology—that is KURALON—to market. This was followed by the commercialization of a stream of proprietary products, including poval resin, the base resin for KURALON; poval film, which is indispensible for LCD devices; EVAL, a gas barrier resin of the highest order; an array of products developed with the world's only synthesis method for isoprene chemicals; and, notably, GENESTAR heat-resistant polyamide resin, which was commercialized in 1999. In 2011, Kuraray commercially launched KURARITY, an acrylic thermoplastic elastomer.

Trends in Net Sales and Operating Income

FY1994:rends in Net Sales3,273Billions of yen、Operating Income191Billions of yen、FY1995:rends in Net Sales3,309Billions of yen、Operating Income234Billions of yen、FY1996:rends in Net Sales3,401Billions of yen、Operating Income237Billions of yen、FY1997:rends in Net Sales3,476Billions of yen、Operating Income268Billions of yen、FY1998:rends in Net Sales3,365Billions of yen、Operating Income271Billions of yen、FY1999:rends in Net Sales3,164Billions of yen、Operating Income203Billions of yen、FY2000:rends in Net Sales3,137Billions of yen、Operating Income199Billions of yen、FY2001:rends in Net Sales3,059Billions of yen、Operating Income190Billions of yen、FY2002:rends in Net Sales3,225Billions of yen、Operating Income252Billions of yen、FY2003:rends in Net Sales3,321Billions of yen、Operating Income280Billions of yen、FY2004:rends in Net Sales3,549Billions of yen、Operating Income332Billions of yen、FY2005:rends in Net Sales3,751Billions of yen、Operating Income383Billions of yen、FY2006:rends in Net Sales3,853Billions of yen、Operating Income402Billions of yen、FY2007:rends in Net Sales4,176Billions of yen、Operating Income481Billions of yen、FY2008:rends in Net Sales3,768Billions of yen、Operating Income293Billions of yen、FY2009:rends in Net Sales3,329Billions of yen、Operating Income305Billions of yen、FY2010:rends in Net Sales3,632Billions of yen、Operating Income531Billions of yen、FY2011:rends in Net Sales3,690Billions of yen、Operating Income547Billions of yen、FY2012:rends in Net Sales3,694Billions of yen、Operating Income492Billions of yen、FY2013:rends in Net Sales4,135Billions of yen、Operating Income495Billions of yen、FY2014:rends in Net Sales4,850Billions of yen、Operating Income514Billions of yen、FY2015:rends in Net Sales5,217Billions of yen、Operating Income661Billions of yen、FY2016:rends in Net Sales4,852Billions of yen、Operating Income678Billions of yen、FY2017:rends in Net Sales5,184Billions of yen、Operating Income730Billions of yen

FY1995 Chemical-related net sales48%、Textile-related net sales52% FY1996 Chemical-related net sales51%、Textile-related net sales49% The ratio of fibers and textiles to chemicals reverses FY1997 Chemical-related net sales53%、Textile-related net sales47% Stock exchange category changes from Textiles to Chemicals FY2016 Chemical-related net sales81%、Textile-related net sales19% FY2017 Chemical-related net sales83%、Textile-related net sales17%

*The figures in the graphs for fiscal 2014 have been adjusted to reflect the 12 months from Janurary to December for the Company and its consolidated domestic and overseas subsidiaries.

Kuraray Group History

1926~Kurashiki Kenshoku Co. Ltd 1928Commercialized rayon filament 1949~Kurashiki Rayon Co., Ltd. 1950Commercialzed KURALON 1954Started production of PVA film 1958Commercialized PVA 1964Commercialized CLARINO, Commercialized polyester staple 1969Commercialized polyester filament Clavella 1970~Kuraray Co., Ltd 1971Commercialized non-woven fabric 1972Commercialized Isoprene 1976Started production of fine chemicals 1978Commercialized dental materials 1983年Established Eval Company of America, Started production of vinylon staple for FRC 1990SEPTEN Commericialized 1996Established Poval Asia 1997Established EVAL Europe 1998Commercialized KURALON K-Ⅱ 1999Commercialized GENESTAR 2000Established SEPTON Company of America 2001Withdrawal from rayon, Acquired Clarian'ts PVA-related operations 2004Acquired HTT's PVB film business 2011Commercialized KURARITY 2012Acquired MonoSol, LLC 2014Acquired Du Pont's Vinyl acetate related dusiness 2015Acquired Plantic Technologies Ltd.,