Mid-Term Business Plan

GS-21 New Medium-Term Business Plan (FY2006 to FY2008)
Toward Exciting Innovation and Outstanding Earnings

Kuraray recently formulated a 10-Year Corporate Vision that indicates the long-term direction in which the Kuraray Group is aiming to go, and our new GS-21 medium-term business plan, a three-year plan from FY 2006 to FY2008.

With an awareness of the increasing impact of deflation on business conditions, Kuraray undertook a review of its G-21 medium-term business plan (FY2001-2005) in FY 2002. Kuraray has adhered to a basic course of focusing on a growth strategy for its core businesses and four strategic fields, and the Company implemented measures to reinforce competitiveness by stepping up efforts to improve its earnings structure and reorganizing underperforming businesses. Consequently, business performance in FY 2005, the final year of G-21, is expected to fall 5% below numerical targets revised in FY 2002 (Net sales: ¥400 billion; Operating income: ¥40 billion). ROA, on the other hand, is anticipated to meet the target of 8% or more.

Net sales were weak due to the strategic cutback in the polyester business. The average growth rate over the past five years, however, was 3.6%, which included the benefits from M&A. Kuraray vigorously pursued capital investment and M&A mainly in its core business. Furthermore, we endeavored to expand businesses in strategic areas such as IT-released optical materials, creating a foothold in next-generation new business development.

Supported by production innovation and business structure improvement, operating income has exhibited double-digit growth for four consecutive years from FY 2002. The average growth rate over the past five years is 13.8%. However, failure to meet the Company's profit target is attributed to the slow pace at which investments have borne fruit, and delays in response to markets, product development, passing on increased raw material and fuel costs to sales prices and improving head office efficiency. Those remain outstanding issues.

Under G-21, Kuraray also promoted organizational reform with the aim of accelerating business operations and enhancing corporate governance. The Company effectively overhauled organizational management by:adopting an in-house company system that integrates production, sales and development; implementing an executive officer system; reducing the maximum number of directors; and establishing the New Business Development Division, which accelerates the process from R&D through commercialization. In terms of corporate governance, the Company bolstered its corporate auditor system and established the Management Advisory Committee. In addition, Kuraray set up the CSR Committee to formulate policies that contribute to the environment and society. Despite these comprehensive measures, the issue of risk management and prevention of accidents at plants remains.

• Top

• 

• Management Policy
  • Corporate Governance
  • Outline of Medium-term Action Plan "GS-Twins" and President Interview
  • Dividend Policy
• Message from the President
• Learning about Kuraray
• Results Briefings and General Meetings of Shareholders
• IR Library
• Stock Data
• IR Calendar
• FAQ