Message from the President

Dear Shareholders and Investors

On June 24, 2026, Kuraray will celebrate its 100th anniversary. We extend our heartfelt gratitude to our shareholders and all stakeholders for their long-standing support.

In fiscal 2025, the fourth year of the medium-term management plan "PASSION 2026," the outlook for the global economy remained difficult to forecast, triggered by the tariff policies of the United States and other factors. In our business, sales volume was sluggish overall, including in the core vinyl acetate-related business, from the second half of the year, resulting in lower sales and profits compared to the previous year. In addition, net income attributable to owners of the parent decreased significantly from the previous year due to the recording of impairment losses in the Isoprene segment in light of the severe business environment and other factors. 

In fiscal 2026, the final year of “PASSION 2026,” we forecast net sales of ¥850 billion, operating income of ¥70 billion, and net income attributable to owners of the parent of ¥40 billion. We will meet expanding demand by leveraging our strengths in “growth, expansion businesses”, including EVAL, genestar, activated carbon, and dental materials. We will also work harder to build a more enhanced business portfolio by striving to improve the profitability of the “businesses to be optimized, structurally improved” In addition, for the Group’s medium- to long-term growth, we will continue accelerating initiatives aimed at creating new businesses through internal and external global collaboration.

The Company positions the distribution of profits to all shareholders as a priority management issue. Our shareholder return policy is to ensure a total return ratio of at least 50% as a proportion of net income attributable to owners of the parent, hold steady or increase dividends per share, and aim to continually conduct share buybacks. Based on this policy, dividend per share for fiscal 2025 was ¥54 (¥27 for interim and ¥27 for year-end). In addition, we acquired ¥30 billion of treasury stock and cancelled 16,900,000 shares of treasury stock. As a result, the total return ratio for fiscal 2025 was amount to 628.1%.

The annual dividend per share for fiscal 2026 is planned to be ¥64 (¥32 for interim and ¥32 for year-end), consisting of an ordinary dividend of ¥54 (¥27 for interim and ¥27 for year-end) and a 100th anniversary commemorative dividend of ¥10 per share (¥5 for interim and ¥5 for year-end). In addition, the Company has decided to conduct share buyback of up to ¥10 billion or 8 million shares, and the total return ratio for fiscal 2026 is expected to be approximately 74%. We will continue to enhance the Kuraray Group's corporate value by strengthening our ability to generate cash in our business activities, strategically investing resources for growth, and enhancing shareholder returns.

Based on our mission “We are committed to developing new fields of business using pioneering technology that improves the environment and enhances the quality of life throughout the world. For people and the planet—to achieve what no one else can”, the Kuraray Group will continue to take on challenges as a specialty chemical company with sustainable growth. On behalf of Kuraray  Group, I would like to extend our gratitude for your continued understanding and generous support.

Hitoshi Kawahara, President and Representative Director