Responsible for Corporate Management Planning Office
August 9, 2023
Kawahara: Hello, everyone. Thank you very much for taking time out of your busy schedules today to attend the Kuraray Group's financial results briefing. I am Hitoshi Kawahara, President. I will now begin to explain the financial results for Q2 of FY2023.
Please see page two.
In H1 of FY2023, the economy recovered moderately, with the exception of some regions, as disruptions in the supply chain was coming to an end and supply restrictions due to the shortage of semiconductors eased. On the other hand, the outlook remains uncertain due to continued monetary tightening in various countries to curb inflation, the Chinese economy, which lacked strength despite expectations of a recovery at the beginning of the year, and the situation in Russia and Ukraine, where no way out is in sight.
In this environment, sales of the Group increased JPY23 billion YoY to JPY381 billion, operating income increased JPY2.9 billion to JPY41 billion, and net income decreased JPY2.4 billion to JPY21.8 billion due to the last extraordinary loss recorded in Q1 related to the litigation of the fire at the EVAL plant in the US. Sales, operating income, and ordinary income reached record highs for H1. The actual results for foreign exchange and raw materials and fuel are as shown in the material.
1
Next, please see page three. On the next slide, we show the factors for the increase or decrease in operating income.
As for the volume, from the left, the decrease in sales volume due to the economic slowdown, including the production adjustment, was approximately JPY19.9 billion. On the other hand, the revision of selling prices and the shift to high added value products were successful, contributing to an increase of JPY37.5 billion in selling prices and product mix. Other factors contributing to the JPY20.4 billion decrease include inventory valuation differences due to changes in raw material and fuel prices, and increased expenses, including depreciation and amortization.
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Next, please see page four. This slide shows the results for H1 of FY2023 for the financial KPIs set forth in our medium-term management plan, PASSION 2026.
The results for each KPI for H1 of FY2023 were as follows: ROIC was 6.7%, EBITDA was JPY77.7 billion, and ROE was 6.4%. We will continue to strive to improve capital efficiency and cash generation.
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See page five.
The results in H1 exceeded expectations. However, due to the delay in the recovery of demand in some businesses and regions, we maintain our full-year forecasts as announced on May 12, with sales of JPY810 billion, operating income of JPY84 billion, and income of JPY47 billion.
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Kuraray Co. Ltd. published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2023 11:25:03 UTC.
Kuraray Co., Ltd. is the world's leader in the manufacturing and marketing of chemical products, resins and synthetic fibers. Net sales break down by family of products as follows:
- chemical and resin (45.6%): functional resins and films, elastometers, thermoplastics, adhesives, fine chemistry products, etc. primarily for cosmetic products, televisions and mobile phones screens, foot packaging and paper manufacturing;
- fibers and textile products (29.8%): synthetic fibers and man-made leather, polyester, nonwoven textile products, resins, etc. sold under the brands Kuralon, Clarino Vectran and Kuraflex;
- functional materials (18.8%): methacrylic resin, medical chemicals, carbon materials, etc.;
- other (5.8%): primarily dental treatment and water purifying products.
At the end of 2019, the group had 52 production worldwide.
Net sales break down geographically as follows: Japan (27.1%), China (13.8%), Asia (12.3%), Europe (23.6%), the United States (18.5%) and other (4.7%).
KURARAY CO., LTD 
