Message from the President

Dear Shareholders and Investors

First of all, I would like to express my condolences to those who lost their lives in the 2024 Noto Peninsula Earthquake and my heartfelt sympathy to all those who were affected by the disaster. I sincerely hope for the quick recovery of the affected areas.

The Kuraray Group works to tackle the three challenges outlined in the medium-term management plan “PASSION 2026,” which was launched in fiscal 2022: 1) Sustainability as an opportunity, 2) Innovations starting from networking, and 3) Transformation of people and organization. Through these efforts, the Group aims to achieve sustainable growth by contributing to customers, society, and the world.

Looking back on fiscal 2023, the trend toward deceleration in the world economy strengthened in the latter half of the year due in part to economic stagnation caused by continued financial tightening in Europe, slowing growth caused mainly by stagnation in the real estate market in China, and geopolitical tensions in various places around the world. Amid these circumstances, the Group's business performance was as follows: Net sales increased by ¥24.6 billion to ¥780.9 billion, operating income decreased by ¥11.7 billion to ¥75.5 billion, ordinary income decreased by ¥15 billion to ¥69 billion, and net income attributable to owners of the parent decreased by ¥11.9 billion to ¥42.4 billion.

In fiscal 2024, the economics expected to gradually head toward a recovery in the latter half of the year due to efforts to revise financial policies amid easing inflation pressure despite ongoing uncertainty, such as geopolitical risks in various places around the world and economic stagnation in China. Amid this situation, we are targeting year-on-year increases in both sales and profits for fiscal 2024, with net sales of ¥830 billion, operating income of ¥83 billion, ordinary income of ¥77 billion, and net income attributable to owners of the parent of ¥47 billion. In addition to an isoprene base in Thailand, we will swiftly begin stable operations of new activated carbon manufacturing equipment in the United States, optical-use poval film productions facilities, and the new water soluble PVOH film plant in Poland, and connect these operations to profit expansion.

The Company positions the distribution of profits to all shareholders as a priority management issue. During the period of the medium-term management plan “PASSION 2026”(FY2022~FY2026), our basic policy is to ensure a total return ratio of at least 35% as the proportion of net income attributable to owners of the parent, and an annual dividend of at least ¥40 per share.
Based on this policy, for fiscal 2023, we plan to pay out an annual dividend of ¥50 per share comprising an interim dividend of ¥25 and a year-end dividend of ¥25. For fiscal 2024, we plan to pay out an annual dividend of ¥50 per share comprising an interim dividend of ¥25 and a year-end dividend of ¥25, premised on net income attributable to owners of the parent ¥47.0 billion.

On behalf of Kuraray, I would like to extend our gratitude for your continued understanding and generous support.

February 8, 2024
Hitoshi Kawahara, President and Representative Director