Dear Shareholders and Investors
Currently, the spread of the novel coronavirus is affecting regions around the globe. We hereby express our wholehearted sympathy to all those infected with the coronavirus and those who face significant hardship and inconvenience due to the restrictions on daily life. We also wish to thank frontline medical practitioners, government officials and municipal staff and express our deep respect and sincere gratitude for their dedication in a grueling battle against the unprecedented pandemics.
In the second quarter of fiscal 2020 (January 1, 2020–June 30, 2020), the world economy saw a much clearer retraction as efforts to contain the spread of COVID-19 have failed to gain traction. Even amid this kind of environment, our Group maintained its business activities while thoroughly ensuring safety and working to prevent infection with the aim of supporting industrial supply chains. Consequently, consolidated operating results for the second quarter of fiscal 2020 are as follows: net sales fell ¥25,412 million, or 8.8%, compared with the previous fiscal year to ¥262,006 million; operating income decreased ¥8,310 million, or 29.8%, to ¥19,611 million; ordinary income decreased ¥7,047 million, or 28.5%, to ¥17,638 million; and net income attributable to owners of the parent fell ¥4,093 million, or 30.9%, to ¥9,160 million.
The Group’s long-term vision, Kuraray Vision 2026, is to become a “Specialty Chemical Company, growing sustainably by incorporating new foundational platforms into its own technologies.” As we continue working to realize this vision, we will steadily take specific measures in line with the key management strategies underlined in the medium-term management plan “PROUD 2020” from a medium- to long-term perspective. Through these efforts, we will also continue working to establish a new business portfolio.
In addition, the distribution of profits to shareholders is one of the Company’s top management issues. Kuraray will continuously and stably pay out dividends, taking into consideration business performance and financial standing while carefully securing internal reserves, which are its primary source of funds for business development.
During PROUD 2020, the medium-term management plan for fiscal 2018 through fiscal 2020, the Company will uphold a basic policy of increasing the distribution of profits through continuous improvement in business results. It has set targets of a total return ratio of 35% or more, reflecting net income attributable to owners of the parent, and annual dividends per share of ¥40 or higher.
On behalf of Kuraray, I would like to extend our gratitude for your continued understanding and generous support.
January 1, 2021
Representative Director and President