Dear Shareholders and Investors
In the fiscal year ended December 31, 2022 (“fiscal 2022”), the world economy continued to gradually recover as restrictions on economic activities were eased. However, the future remained unforeseeable as signs of economic deceleration appeared in the latter half of the year due in part to a rise in interest rates in various countries amid rapid inflation and the prolonged Russia-Ukraine crisis. Amid these circumstances, the Group worked to tackle the three challenges outlined in the medium-term management plan “PASSION 2026,” (FY2022–FY2026): 1) Sustainability as an opportunity, 2) Innovations starting from networking, and 3) Transformation of people and organization. In addition, we revised the prices of products that were affected by soaring raw material and fuel costs while focusing on ensuring a steady supply of high value-added products by levering the global network we have constructed.
Consequently, consolidated operating results for fiscal 2022 are as follows: net sales were ¥756,376 million (¥629,370 million in the previous fiscal year); operating income was ¥87,139 million (¥72,256 million in the previous fiscal year); ordinary income was ¥84,060 million (¥68,756 million in the previous fiscal year); and net income attributable to owners of the parent was ¥54,307 million (¥37,262 million in the previous fiscal year). Furthermore, we recorded an extraordinary loss of ¥5,785 million as costs related to the suspension of operations due mainly to the suspension of some production facilities at a U.S. subsidiary.
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”, our basic policy is to ensure a total return ratio of at least 35% as a proportion of net income attributable to owners of the parent, and an annual dividend of at least ¥40 per share. For fiscal 2022, we revised our previous forecast and plan to pay out an annual dividend of ¥44 per share comprising an interim dividend of ¥21 and a year-end dividend of ¥23. In addition, in fiscal 2022, we purchased 9,424 thousand shares of treasury stock totaling ¥9,999 million.
On behalf of Kuraray, I would like to extend our gratitude for your continued understanding and generous support.
February 9, 2023
Representative Director and President