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Kuraray Report 2019

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Kuraray Report 2019 KURARAY CO., LTD. KURARAY REPORT 2019 REPORT KURARAY LTD. CO., KURARAY Kuraray Report 2019 KURARAY CO., LTD. Head Office: Ote Center Building, 1-1-3, Otemachi, Chiyoda-ku, Tokyo 100-8115, Japan TEL: +81-3-6701-1000 FAX: +81-3-6701-1005 https://www.kuraray.com Issued in May 2019 005_0173587911905.indd 1-3 2019/05/31 18:38:38 Corporate Data (December 31, 2018) In order to make today better than yesterday, and tomorrow better than today, we at Kuraray have made completely new and Corporate Overview Major Shareholders (As of Dec 31, 2018) Company Name Kuraray Co., Ltd. Number of unique things by harnessing the power of chemistry. Name of shareholders shares held Representative Masaaki Ito (thousands) Director and President Many industries and people around the world now choose The Master Trust Bank of Japan, Ltd. (Trust Account) 40,318 Established June 1926 Japan Trustee Services Bank, Ltd. (Trust Account) 24,629 Kuraray’s technologies, products, and services. Head Office Ote Center Building, 1-1-3, Otemachi, Chiyoda-ku, Tokyo 100-8115, Japan National Mutual Insurance Federation of Agricultural Cooperatives 10,882 URL https://www.kuraray.com We take pride in this fact and are deeply grateful to our Nippon Life Insurance Company 10,448 Capital JPY89 billion Employees 10,768 Japan Trustee Services Bank, Ltd. (Trust Account5) 6,479 customers around the world for making this possible. (Consolidated) Meiji Yasuda Life Insurance Company 5,969 Group Companies 77 consolidated subsidiaries, 3 equity-method affiliate STATE STREET BANK WEST CLIENT - TREATY 505234 5,851 Japan Trustee Services Bank, Ltd. (Trust Account7) 5,776 Since our founding, we have valued the pioneering spirit. Major Operations The United States, Germany, Belgium, China, Singapore STATE STREET BANK AND TRUST COMPANY 505001 5,765 We continually ask ourselves what we can do for the world of NOTHERN TRUST CO. (AVFC) RE - SSD00 5,442 tomorrow and the people living in it. Note: Kuraray Co., Ltd. holds 6,179,578 shares of treasury stock. “For people and the planet—to achieve what no one else can.” Stock Information Shareholder Composition (Shareholding Ratio) Passed down through the generations, this has been our Securities Code 3405 Individuals and Others Trust and Banking 12.52% Companies Issued and Outstanding 354,863,603 shares constant motivation. Shares Held by 29.93% Shares Kuraray Co., Ltd. Number of Shareholders 47,260 1.74% Domestic Stock Tokyo Stock Exchange Securities Corporations Life Insurance Exchange Listing We still maintain this mission firmly today. It is Kuraray’s value 4.09% Companies Shareholder Register Sumitomo Mitsui Trust Bank, Limited Other Domestic 7.12% Agent 1-4-1, Marunouchi, Chiyoda-ku, Corporations Major Commercial and our driving force. Tokyo 100-8223, Japan 3.34% Banks and Other Foreign Investors Financial Institutions Independent Auditor PricewaterhouseCoopers Aarata LLC 30.40% 10.86% We continue to cultivate our unique traits, in order to benefit society and the environment. Kuraray Group Network (As of January 1, 2019) Our goal is continual corporate growth, and we have already Domestic Overseas taken the next step forward. Group Main Bases Regional Headquarters Head Office (Chiyoda-ku, Tokyo) Kuraray America, Inc. (Texas, U.S.A.) Osaka Office (Osaka) Kuraray Europe GmbH (Frankfurt, Germany) Kuraray Trading Co., Ltd. (Osaka) Kuraray Asia Pacific Pte. Ltd. (Singapore) Kuraray Noritake Dental Inc. (Chiyoda-ku, Tokyo) Kuraray (Shanghai) Co., Ltd. (Shanghai, China) Kuraray Plastics Co., Ltd. (Osaka) Kuraray Hong Kong Co., Ltd. (Hong Kong) CONTENTS Kuraray Engineering Co., Ltd. (Osaka) Kuraray India Private Limited (New Delhi, India) Kuraray Techno Co., Ltd. (Osaka) Kuraray South America Ltda. (São Paulo, Brazil) Kuraray Kuraflex Co., Ltd. (Osaka) Kuraray (Thailand) Co., Ltd. (Bangkok, Thailand) Kuraray Fastening Co., Ltd. (Osaka) Introduction Value Creation Report Plants Plants Kuraray America, Inc. (Texas, North Carolina, and West Virginia, U.S.A.) 03 The Kuraray Group’s History 15 Overview of Our Long-Term Vision and Kurashiki Plant (Kurashiki City, Okayama) MonoSol Holdings, Inc. (Indiana, U.S.A., Worcestershire, U.K.) the “PROUD 2020” Medium-Term Saijo Plant (Saijo City, Ehime) Kuraray Europe GmbH (Frankfurt and Troisdorf, Germany) 05 The Kuraray Group’s Strengths Management Plan Okayama Plant (Okayama City, Okayama) EVAL Europe N.V. (Antwerp, Belgium) Niigata Plant (Tainai City, Niigata) OOO TROSIFOL (Nizhny Novgorod, Russian) 07 The Kuraray Group’s Aims 16 Business Overview Kashima Plant (Kamisu City, Ibaraki) Kuraray Asia Pacific Pte. Ltd. (Singapore) 09 Financial and Non-Financial Highlights Tsurumi Plant (Bizen City, Okayama) Kuraray Methacrylate (Zhang Jia Gang) Co., Ltd. 19 Key Person Interview (Zhang Jia Gang, China) Laboratories TOP STATEMENT 1 Kuraray Chemical (Ningxia) Environmental Industry Co., Ltd. 11 19 Aiming for Greater Growth through Technological Kurashiki Research Center (Kurashiki City, Okayama) Development as the Global Leader in Water-Soluble (Ningxia, China) Tsukuba Research Center (Tsukuba City, Ibaraki) Films Kuraray Korea Ltd. (Ulsan, South Korea) 21 2 Transforming Carbon Materials Into One of Plantic Technologies Limited (Victoria, Australia) Kuraray’s Core Businesses: Toward True Leadership Calgon Carbon Corporation in Activated Carbon (Pennsylvania, Kentucky, and Mississippi, U.S.A., U.K., France, and other countries) 23 3 Aiming to Create Economic Value by Applying our Laboratory Technological Prowess KAI Corporate R&D (Texas, U.S.A.) 01 KURARAY REPORT 2019 KURARAY REPORT 2019 46 005_0173587911905.indd090_0173587911905.indd 4-461 2019/05/25 10:58:58 2019/05/31 18:38:38 Corporate Statements 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 Our Values • Respect for individuals Philosophy • Close cooperation to attain shared goals • Constant creation of new value • Safety is the cornerstone of everything we do Guiding Principles • Customers’ needs are our top priority • We act on ideas in the workplace Our Commitment • We will constantly develop and provide safe, high-quality products and services. • We will maintain a sound relationship with society through good communication. • We will strive to preserve and improve the global environment, and to secure safety and health in all our workplaces. • We will value all members of the Kuraray community and respect their rights. • We will always conduct businesses in a free, fair and transparent manner. • We will honor all intellectual property and secure data and information in a proper manner. Foundation for Value Creation Corporate Governance Editorial Policy 25 Starting from 2018, the Kuraray Group has issued the Kuraray Report so that all the stakeholders, including shareholders and investors, can gain a deeper understanding of the Group’s efforts 33 Sustainability Management toward value creation over the medium to long term. Kuraray Report 2019 uses the GRI Standards (2016) as references. Comparison between 35 Advancing Resources That Support them is shown on our website. (https://www.kuraray.com/csr/report2019/guidelines) The Report also concisely conveys the Group’s financial information as well as the important Sustainable Growth non-financial information that affects its corporate value, with reference to the International 35 Technological Development Capabilities Integrated Reported Framework from the International Integrated Reporting Council (IIRC), the “Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative 37 Human Resources Value Creation” (Guidance for Collaborative Value Creation) from the Japanese Ministry of Economy, Trade and Industry, and other sources. For detailed information on our products and 39 Safety Activities businesses, please visit our website. 41 Environmental Management Reporting Period January 1 to December 31, 2018 43 Trust (Some information after January 2019 is included.) Scope of the Report 46 Corporate Data Kuraray Co., Ltd. and the Kuraray Group companies KURARAY REPORT 2019 02 090_0173587911905.indd010_0173587911905.indd 2 2019/05/252019/05/30 10:58:5916:31:01 Introduction The Kuraray Group’s History Moving Through Shifts in Business Structure to Become a Specialty Chemical Company Kuraray was founded in 1926 for the purpose of commercializing regenerated cellulose fiber rayon, which was cutting-edge technology at the time. The company has expanded ever since, with a focus on fibers and textiles. Following the eventual transition of fiber and textile production moving overseas and other changes to the business environment, and drawing on its accumulated base of unique technologies in polymer and synthetic chemistry, Kuraray has continued to expand in the field of chemical products. This includes playing a leading role in the global vinyl acetate-related business, as well as strengthening its business portfolio. 61% Sales Ratio 2000 44% Fibers and Textiles Chemicals 39% 1990 56% Overseas Expansion Creating Highly Functional in the Chemicals Business Synthetic Fibers We have been reducing and withdrawing businesses from the multipurpose fiber and textile market due Promoting diversification of our business has yielded to decreased market competitiveness. highly functional synthetic fibers ideal not only for clothing On the positive side, however, we have achieved —developing the industrial materials
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