KURARAY CO., LTD. Kuraray CSR Report 2017 Corporate Social Responsibility Report Tokyo Head Office Ote Center Building, 1-1-3, Otemachi, Chiyoda-ku, Tokyo 100-8115 Osaka Head Office Umeda Hankyu Building Office Tower, 8-1, Kakudacho, Kita-ku, Osaka 530-8611 TEL: +81-3-6701-1000 FAX: +81-3-6701-1005 http://www.kuraray.co.jp/ In an effort to enhance readability This report uses an easy-to-read font based on the Universal レスポンシブResponsibleル・ケア Care® Design (UD) concept. Origin of the Kuraray Group Contents Origin of the Kuraray Group 2 “ For people and the planet – Corporate Statements Kuraray Group Code of Conduct to achieve what no one else can.” Editorial Policy Overview of the Kuraray Group 4 In order to make today better than yesterday, and tomorrow better than today, we at Kuraray Corporate overview have made completely new and unique things by harnessing the power of chemistry. Business Outline Many industries and people around the world now choose Kuraray’s technologies, products, Breakdown of Net Sales by Segment and services. Data on Economic Efficiency We take pride in this fact and are deeply grateful to our customers around the world for making Kuraray Group Network this possible. TOP STATEMENT 6 Since our founding, we have valued the pioneering spirit. CSR Activities at Kuraray Group 8 We continually ask ourselves what we can do for the world of tomorrow and the people living in Process Used by the Kuraray Group for it. Creating Social Value “For people and the planet –to achieve what no one else can.” Identification of Materialities by Kuraray Group Passed down through the generations, this has been our constant motivation. CSR Activity Target and Results Safety Activities 12 We still maintain this mission firmly today. It is Kuraray’s value and our driving force. We continue to cultivate our unique traits, in order to benefit society and the environment. Process Safety and Disaster Prevention, Our goal is continual corporate growth, and we have already taken the next step forward. Occupational Safety, and Logistics Safety Chemical products･Product Safety Topics 2016 Safety Activities Approaches to the Environment 16 Corporate Statements Kuraray Group Code of Conduct Editorial Policy Environmental Management Global Warming Prevention ● Safety and Quality of Products and This report conveys the CSR activities that the Kuraray Group Our Mission Services Topics 2016 implemented in fiscal 2016 with the aim of boosting understanding We are committed to developing new fields of business using pioneering technology ● Disclosure of Corporate Information Reducing of Environmental Risks of them among all stakeholders. that improves the environment and enhances the quality of life throughout the world. ● Anit-Bribery/Rules for Donations Environmental Activities “For people and the planet ̶ to achieve what no one else can.” ● No Relationships with Anti-Social Reporting Period Group Activities at Workplace 22 ● Contribution to Society Fiscal 2016: Jan. 1 to Dec. 31, 2016 Our Values ● Environmental Preservation Scope of the Report Activities at Workplace Philosophy Guiding Principles ● Safety and Disaster Prevention Safety and Environment: Reports focus on Kuraray Co., Ltd. and domestic Topics 2016 ・ Respect for individuals ・ Safety is the cornerstone of ● Safe and Comfortable Workplace affiliated companies, but also include some overseas affiliated companies Activities at Workplaces ・ Close cooperation to attain shared goals everything we do ● Respect for Human Rights ・ Constant creation of new value ・ Customers’ needs are our top priority ● Social: Reports focus on Kuraray Co., Ltd., but also include some affiliated ・ We act on ideas in the workplace Enhancement of Diversity, Equal Opportunity companies depending on their activities in the respective field. Interaction with Society 26 ● Compliance with Antitrust/ Economic: Kuraray Co., Ltd., consolidated subsidiaries, and equity method Competition Laws affiliates (total 40 companies) Interaction with Society Our Commitment ● Prevention of Unfair Competition Topics 2016 ● We will constantly develop and provide safe, high-quality pro ducts and services. ● Compliance with Laws Related to Referenced Guidelines Social Interaction ● We will maintain a sound relationship with society through go od communication. Exports and Imports In accordance with the CORE of the GRI Sustainability Reporting ● We will strive to preserve and improve the global environment , and to secure ● Prohibition on Entertainment and Gift Guidelines（G4） safety and health in all our workplaces. CSR Management 30 in an Excessive Manner Environmental Report Guidelines（2012 Edition） of Ministry of the ● We will value all members of the Kuraray community and respect their rights. ● Prohibition on Conflicts of Interest ● We will always conduct businesses in a free, fair and transparent manner. Environments（Japan） Governance and CSR Promotion Structure ● Prohibition against Insider-Trading ● We will honor all intellectual property and secure data and information in a proper Compliance manner. ● Protecting Trade Secrets Issue Date ● Protecting Intellectual Property May 2017 (Previous issue: May 2016; Next issue: May 2018 (planned)) 2 Kuraray CSR Report 2017 Kuraray CSR Report 2017 3 Overview of the Kuraray Group Data on Economic Efficiency Actively undertaking business inside and Trends in Consolidated Total Assets, Trends in Consolidated Financial Results Net Assets, and Return on Assets Number of Employees (Consolidated) outside of Japan fully utilizing the Group Net sales Operating income Net income Total assets Net assets ROA* (100 million yen) (100 million yen) (100 million yen) % (Employees) 6,000 800 8,000 12 10,000 technologies rich in originality 7,254 4,852 8,590 4,500 600 6,000 9.5 9 Corporate overview 678 7,500 5,210 Company name : Kuraray Co., Ltd. Head offices : Tokyo and Osaka 3,000 404 400 4,000 6 5,000 Representative : Masaaki Ito Plants : Kurashiki, Saijo, Okayama, Niigata, Kashima, Tsurumi Director and Laboratories : Kurashiki Research Center, Tsukuba Research Center President 1,500 200 2,000 3 2,500 Group companies : 38 consolidated subsidiaries, 1 equity-method affiliate Established : June 1926 (as of Dec. 31, 2016) Capital : 89 billion yen Major operations : USA, Germany, Belgium, China, Singapore (as of Dec. 31, 2016) 0 0 0 0 0 ‘12 ‘13 ‘14 ‘15 ‘16 （FY） ‘12 ‘13 ‘14 ‘15 ‘16 （FY） ‘12 ‘13 ‘14 ‘15 ‘16 （FY） Employees : 8,590 (consolidated) (as of Dec. 31, 2016) *ROA: Return on Asset Business Outline Kuraray Group Network The figures are sales by region in hundred million Japanese yen and breakdowns of sales by region in %. Kuraray was founded for the purpose of commercializing technology, we have made use of this unique technology chemical fiber rayon in 1926 in Kurashiki City, Okayama and have delivered a variety of one and only and number- Prefecture. Ever since becoming the first firm in the world to one products to the world as a specialty chemical EVAL Europe N.V. commercialize vinylon fibers after the war based on domestic manufacturer. (Antwerp) North North Europe JapanEuropeKuraray Europe GmbH Asia andJapan Asia and (Frankfurt) Kuraray Korea Ltd. America America Breakdown of Net Sales by Segment (Fiscal 2016)* Breakdown of Net Sales by Region (Fiscal 2016)* others others OOO TROSIFOL (Ulsan) (Russia) Others Kuraray Europe Moravia s.r.o 180.1 billion 65 billion % MonoSol AF, Ltd. MonoSol, LLC 4 (Czech Republic) （37％） （13％） Others (Hartlebury) (Merrillville) 11% North America 13% Kuraray America, Inc. Kuraray America, Inc. Japan (Houston) Trading 37% Kuraray China (Fayetteville)Asia and North 20% Vinyl Acetate Europe Japan 43% Europe 20% Co., Ltd. others America (Shanghai, China) Fibers and Textiles Asia and North 8% EuropeAsia billionJapan 26% 97. 2 Plantic others America Functional 9% Isoprene （20％） Materials 9% Kuraray Asia Technologies Pacific Pte. Ltd. Limited (Singapore) (Australia) 142.9 billion * Sales figures include sales to external customers and the amount of cross-segment internal sales and transfers. （30％） The figures do not include the adjustment expense of 103.2 billion yen. The Kuraray Group Breakdown of Net Sales by Segment 38 consolidated subsidiaries/1 equity-method affiliate (40 companies including Kuraray Co., Ltd.) ●Kuraray site ■Domestic affiliated companies ▲Domestic Kuraray Group companies ◆Overseas affiliated companies Vinyl Acetate 253.2 billion Isoprene 51.1 billion Functional Materials 52.2 billion In this business, we manufacture and sell poval In this business, we manufacture and sell the In this business, we manufacture and sell Domestic ■▲ OKAYAMA RINKOH CO., LTD. ◆ OOO TROSIFOL resin, which features water solubility and world’s only synthetic isoprene chemical CLARINO man-made leather with a structure ●▲ Kuraray Co., Ltd. ●■▲ Kuraray Noritake Dental Inc. ◆ Kuraray Europe Benelux B.V. adhesive properties, poval film, which can be products and their derivative SEPTON, a and functionality as elaborate as natural ●▲ KURARAY ENGINEERING CO., LTD. ■▲ THE KURASHIKI KOKUSAI HOTEL, LTD. ◆ Kuraray Europe Moravia s.r.o applied to liquid crystal displays and is also thermoplastic elastomer, as well as GENESTAR leather, dental materials that enable repairs ■▲ KURARAY CHEMICAL CO., LTD.* ■▲ KURARAY AQUA CO., LTD. ◆ Kuraray Asia Pacific Pte. Ltd. used for single-use packets for detergents and a new polyamide resin with excellent heat that closely resemble natural teeth, and so on, EVAL, which has an excellent gas barrier resistance. methacrylate resin, which boasts excellent