Business Results for the Fiscal Year Ended
December 31, 2019 (Unaudited)

February 13, 2020
Kuraray Co., Ltd.

February 13, 2020
Kuraray Co., Ltd.

Consolidated Earnings Report for the Fiscal Year Ended December 31, 2019
Name of listed company:
Stock code:
Stock exchange listing:
URL:

Kuraray Co., Ltd.
3405
Tokyo, first section
https://www.kuraray.com/

Representative:
Title:
Name:

Representative Director and President
Masaaki Ito

Contact:
Title:

Senior Manager, Corporate Communications Department, Corporate Management
Planning Office
Fumio Uegaki+81-3-6701-1070

Name:
Tel:

Preparation of supplementary documentation for the quarterly earnings report: Yes
Holding of quarterly earnings results briefing: Yes (for securities analysts and institutional investors)(Millions of yen rounded down unless otherwise stated)

1. Consolidated Financial Results for Fiscal 2019 (January 1, 2019 to December 31, 2019)(1) Consolidated Operating Results(Percentage changes displayed for net sales, operating income, ordinary income and net income attributable to owners of theparent are comparisons with the corresponding period of the previous fiscal year.)(Millions of yen)
Net Sales

Fiscal 2019
Fiscal 2018

(%)
(4.5)
16.3

575,807602,996

Note: Comprehensive income:(5.66)
96.05(%)(17.7)(13.8)

54,17365,794For fiscal 2019:
For fiscal 2018:

Net Income per
Share (Yen)
Fiscal 2019
Fiscal 2018

Operating Income

48,271
61,167(%)(21.1)(17.6)(1,956)33,560(%)―(38.4)−¥8,137 million (―%)
¥16,285 million (−73.2%)

Fully Diluted Net
Income per Share
(Yen)
―
95.86

[Reference] Equity in earnings of affiliate:

Net Income Attributableto Owners of the Parent

Ordinary Income

Return on
Equity (%)

Return on Total
Assets (%)
(0.4)
6.0

For fiscal 2019:
For fiscal 2018:

5.0
7.1

Operating
Income/Net Sales
(%)
9.4
10.9

¥361 million¥333 million(2) Consolidated Financial Position(Millions of yen)
Total Assets
Fiscal 2019
Fiscal 2018

991,149
947,095

Net Assets
538,545567,033

Equity Ratio (%)
53.0
58.6

Net Assets per Share(Yen)
1,527.79
1,592.96[Reference] Equity attributable to owners of the parent: For fiscal 2019:¥525,151 million
For fiscal 2018:¥555,438 million
Note: Kuraray has adopted ASBJ Statement No. 28 Partial Amendments to Accounting Standard for Tax Effect Accounting(issued February 16, 2018) from January 1, 2019. These accounting standards have been retroactively applied to thenumbers used for the consolidated financial position as of December 31, 2018.

(3) Consolidated Cash Flows(Millions of yen)
Cash Flows fromOperating Activities
Fiscal 2019
Fiscal 2018

Cash Flows from
Investing Activities

95,57775,171

Cash Flows from
Financing Activities(89,369)(186,982)(1,517)
114,088

Cash and Cash
Equivalents at End of
Period75,967
71,345

2. Dividends(Yen)
Record Date

Fiscal 2018
Fiscal 2019
Fiscal 2020
(Forecast)Mar. 31

Cash Dividends per ShareJun. 30
Sep. 30
Dec. 31Annual

―
―

20.00
20.00

―
―

22.00
22.00

42.00
42.00

―

21.00

―

21.00

42.00

Total
Dividends
Paid(full year)(¥ million)
14,644
14,486

Payout Ratio(consolidated)(%)

Dividends/Net
Assets(consolidated)
(%)

43.7
―

2.6
2.7

41.2

Note: Revisions to cash dividend forecast during this period: No

3. Forecasts of Consolidated Financial Results for Fiscal 2020 (January 1, 2020 to December 31,
2020)(Percentage changes displayed for net sales, operating income, ordinary income and net income attributable to owners of theparent are comparisons with the previous fiscal year)(Millions of yen)
Net SalesInterim Period
Full Fiscal Year

Operating Income

Ordinary
IncomeNet Income Attributableto Owners of the Parent

Net Income per
Share (Yen)

290,000

0.9

28,0000.3

26,0005.3

16,000

20.7

46.55

590,000

2.5

60,00010.8

56,00016.0

35,000－101.82[Reference](1) Changes in Important Subsidiaries during the Period (Changes in Special Subsidiaries
Involving Changes in the Scope of Consolidation)
Added: No companies

Excluded: No companies(2) Changes in Accounting Principles, Procedures and Presentation Methods inConnection with the Preparation of Quarterly Consolidated Financial Statements
1. Changes following revision of accounting standards: Yes
2. Changes besides 1. above: No
3. Changes in accounting estimates: Yes
4. Restatement: No(3) Number of Shares Issued and Outstanding (Common Shares)
1.

Number of shares issued and outstanding (including treasury stock) as of the period-end:
As of December 31, 2019354,863,603 shares
As of December 31, 2018354,863,603 shares

2.

Number of treasury stock as of the period-end:
As of December 31, 201911,130,834 shares
As of December 31, 2018
6,179,578 shares

3.

Average number of shares for the period (cumulative):
As of December 31, 2019345,819,930 shares
As of December 31, 2018349,424,058 shares[Reference]
Summary of Unconsolidated Results
1. Unconsolidated Results for Fiscal 2019 (January 1, 2019 – December 31, 2019)(Percentages displayed for net sales, operating income, ordinary income and net income attributable to owners of the parent
are comparisons with the previous fiscal year.)(1) Unconsolidated Operating Results
Net Sales

Fiscal 2019
Fiscal 2018236,315
248,149

Operating Income(Change)(4.8)
2.3

Net Income
per Share (Yen)
Fiscal 2019
Fiscal 201832,18041,861

Ordinary Income(Change)(23.1)(5.6)

32,71943,606(Change)(25.0)(6.0)(Millions of yen)
Net Income Attributable to
Owners of the Parent(Change)24.00714.7
20,931(48.7)

Fully Diluted
Net Income
per Share (Yen)
69.32
59.79

69.42
59.90

Note: Percentage change in comparison with the previous fiscal year is not stated because changes to accounting principles
were applied retroactively.

(2) Unconsolidated Financial Position(Millions of yen)
Total Assets

Net Assets

Fiscal 2019
Fiscal 2018789,923
722,242

387,653384,667[Reference] Shareholders’ equity:

For fiscal 2019: ¥386,989 million

Shareholders’ Equity
Ratio (%)
49.0
53.2

Net Assets
per Share (Yen)
1,125.84
1,101.51

For fiscal 2018: ¥384,080 million

Note: It is not required that this type of earnings report be audited.
Cautionary Statement with Respect to Forecasts of Consolidated Business Results(Cautionary note regarding forward-looking statements)
The results forecasts presented in this document are based upon currently available information andassumptions deemed rational. A variety of factors could cause actual results to differ materially fromforecasts. Please refer to “1. Qualitative Information regarding Business Results (4) Outlook for Fiscal
2020” on page 6 of the Attachment for the assumptions used.
Access to Documents and Other Materials Relating to the Year-End Results Briefing to Be Held on February 13, 2020
Related documents and materials, including the video of the briefing, will be posted on the Company’s
website immediately after the briefing is closed.

Index of the Attachment
1. Qualitative Information regarding Business Results ..............................................................................

2(1) Overview of Consolidated Business Results ........................................................................................

2(2) Overview of Financial Position ..............................................................................................................

4(3) Overview of Cash Flows ..........................................................................................................................

4(4) Outlook for Fiscal 2020 ...........................................................................................................................

6

2. Management Policies....................................................................................................................................

7(1) Fundamental Management Policies .......................................................................................................

7(2) Management Indicator Targets, Medium- to Long-Term Strategies and Issues to Be Addressed 7
3. Basic Approach to Selection of Accounting Standards .........................................................................

8

4. Consolidated Financial Statements and Notes ........................................................................................

10(1) Consolidated Balance Sheets ...................................................................................................................

10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

12(3) Consolidated Statements of Changes in Net Assets ...........................................................................

15(4) Consolidated Statements of Cash Flows ...............................................................................................

17(5) Notes regarding Consolidated Financial Statements ..........................................................................

19

Notes regarding Going Concern Assumptions ....................................................................................

19

Changes in Accounting Principles, etc. .................................................................................................

19

Changes in Presentation Methods ..........................................................................................................

19

Changes in Accounting Estimates ..........................................................................................................

19

Segment and Other Information ............................................................................................................

20

Per Share Information ..............................................................................................................................

26

Significant Subsequent Information.......................................................................................................

26

1

1. Qualitative Information regarding Business Results(1) Overview of Consolidated Business Results
In the fiscal year ended December 31, 2019 (“fiscal 2019”), the prolonged trade war
between the United States and China and emerging geopolitical risks across the globe
fostered a stronger sense of uncertainty with each passing period. Due to these factors, aclear decelerating trend emerged in the world economy. Consequently, consolidated
operating results for fiscal 2019 are as follows: net sales decreased ¥27,188 million, or 4.5%,
compared with the previous fiscal year to ¥575,807 million; operating income fell ¥11,620
million, or 17.7%, to ¥54,173 million; ordinary income decreased ¥12,896 million, or
21.1%, to ¥48,271 million; and net loss attributable to owners of the parent totaled ¥1,956
million (compared with net income attributable to owners of the parent of ¥33,560 million
in the previous fiscal year). In fiscal 2019, Kuraray has recognized a loss of ¥50,590 million,
including a settlement in connection with a fire in May 2018 at a group subsidiary in the
United States. Based on a reasonable estimate of damages, the settlement was paid to theplaintiffs and, along with other expenses, has been classified as an extraordinary loss.
Kuraray also recognized insurance income totaling ¥10,360 million as part of extraordinary
income.
The Kuraray Group launched the medium-term management plan “PROUD 2020” fromfiscal 2018. In fiscal 2020, the final year of the plan, the Group aims to achieve its
long-term vision of becoming a “Specialty Chemical Company, growing sustainably byincorporating new foundational platforms into its own technologies.” We will steadily takespecific measures related to the key management strategies underlined in the plan. We will
also continue working to establish a new business portfolio from a medium- to long-term
perspective.
In addition, Kuraray has adopted ASBJ Statement No. 28 Partial Amendments to
Accounting Standard for Tax Effect Accounting (issued February 16, 2018) from January 1,
2019. Regarding the Company’s financial position, these accounting standards have been
retroactively applied to the numbers used for comparison and analysis with the previous
fiscal year.

2Results by Business Segment
Vinyl Acetate
Sales in this segment decreased 4.8% year on year to ¥266,105 million, and segment
income fell 13.5% year on year to ¥47,368 million.
(1) The sales volume of PVA resin declined due to decelerating economic conditions.
Shipments of optical-use poval film decreased due to a LCD panel inventory
adjustment. We completed an expansion of facilities at the Kurashiki Plant in the
fourth quarter. In addition, the performance of PVB film for automotive use struggled
despite growing demand for ionomer interlayer for glass lamination SentryGlas™ for
construction use. However, sales of water-soluble PVA film expanded for use in unit
dose detergent packets.
(2) Sales of EVAL™ ethylene vinyl alcohol copolymer (EVOH resin) for gas tankapplications was affected by the decline in the production number of vehicles. The
sales volume for food packaging applications declined despite a gradual recovery insales from the third quarter onward.
Isoprene
Sales in this segment decreased 6.9% year on year to ¥53,276 million, and segment income
fell 41.8% year on year to ¥4,232 million.
(1) The sales volume of SEPTON™ thermoplastic elastomer declined due to economic
deceleration.
(2) The sales of GENESTAR™ heat-resistant polyamide resin fell due to sluggish
demand for electric and electronic devices. However, demand for connectors forautomotive devices grew.
Functional Materials
Sales in this segment decreased 4.2% year on year to ¥125,982 million, and segment
income decreased 12.7% year on year to ¥3,836 million.
(1) The methacrylate business was affected by worsening market conditions, which, inturn, caused sales of methacrylic resins to decrease.
(2) In the medical business, sales were steady, especially for esthetic and restorative
dentistry products.
(3) As for Calgon Carbon, demand held steady in North America, whereas results in
Europe were sluggish due to stagnant demand. In the Carbon Materials business, salesof high value-added products increased.
Fibers and Textiles
Sales in this segment edged down 0.3% year on year to ¥64,513 million while segment
income fell 9.9% year on year to ¥5,654 million.
(1) Sales of CLARINO™ man-made leather sales for luxury product applications
remained stable. However, results struggled for use in shoes.
(2) In fibers and industrial materials, the performance of KURALON™ for cement
reinforcement use remained weak. Sales of products used in reinforcing rubber were
negatively affected by a decline in vehicle production. However, the results of
VECTRAN™ were firm, mainly for exports.
(3) In consumer goods and materials, sales of KURAFLEX™ for commodity use
3decreased, however, sales of high-value-added products increased.
Trading
In fiber-related businesses, sales of sewn products remained firm, including sportswear-use
products, and exports of functional fiber and yarn increased. However, exports of resinsand chemicals struggled, especially those to China. As a result, segment sales decreased
5.7% year on year to ¥130,911 million, and segment income rose 0.2% to ¥4,224 million.
Others BusinessIn other businesses, due to weak sales of domestic affiliates, segment sales declined 11.9%
year on year to ¥51,128 million, and segment income fell 44.9% to ¥649 million.
(2) Overview of Financial Position
Total assets increased ¥44,053 million from the end of the previous fiscal year to ¥991,149
million mainly because of a ¥57,381 million increase in tangible fixed assets that offset a¥14,215 million decrease in intangible fixed assets. Total liabilities increased ¥72,541
million to ¥452,604 million due to factors that included the issuance of commercial paper
totaling ¥24,000 million, a ¥38,289 million increase in accrued expenses, and a ¥17,087
million increase in other noncurrent liabilities, despite an ¥11,675 million decrease in
short-term loans payable. The main reason for the increases in tangible fixed assets andother noncurrent liabilities is the application of IFRS 16 for leases of some overseas
affiliates from the first quarter of the fiscal year ending December 31, 2019, which led toincreases in right-of-use assets and lease liabilities respectively.
Net assets fell ¥28,488 million to ¥538,545 million. Equity attributable to owners of theparent amounted to ¥525,151 million, for an equity ratio of 53.0%.
(3) Overview of Cash Flows
Cash Flows from Operating Activities:
Net cash provided by operating activities totaled ¥95,577 million. Cash provided included¥2,893 million from income before income taxes and noncontrolling interests. Cash used
included ¥58,158 million in depreciation and amortization, ¥39,394 million from loss on
litigation unpaid, ¥5,724 million due to notes and accounts receivable—trade, and ¥19,308
million in income taxes paid.
Cash Flows from Investing Activities:
Net cash used in investing activities totaled ¥89,369 million. Uses of cash included a¥4,984 million increase in time deposits and ¥87,105 million for the purchase of tangible
fixed assets and intangible fixed assets.
Cash Flows from Financing Activities:
Net cash used in financing activities was ¥1,517 million. Cash provided included ¥24,000
million from a net increase in commercial paper and ¥7,744 million from proceeds fromlong-term loans payable. Cash used included cash dividends paid totaling ¥14,595 million
4and ¥12,050 for the repayment of long-term loans payable.
The above factors along with the effect of exchange rate changes on cash and cash
equivalents resulted in a net decrease in cash and cash equivalents, which, along with anincrease in cash and cash equivalents from newly consolidated subsidiary, led to a ¥4,621
million increase in cash and cash equivalents at the end of the fiscal year to ¥75,967
million.
(Millions of yen)
Fiscal Year Ended
December 31, 2018

Fiscal Year .Ended
December 31, 2019

Net cash provided by operating activities

75,171

95,577

Net cash used in investing activities(186,982)(89,369)

Net cash used in financing activities

114,088(1,517)equivalents(1,210)(70)

Net increase in cash and cash equivalents

1,065

4,620

Cash and cash equivalents, beginning of the period

70,234

71,345

Effect of exchange rate changes on cash and cash

Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents, end of the period

45

171,34575,967[Reference] Cash Flow Indicators for the Kuraray Group

Equity ratio (%)
Equity ratio (%;market basis)
Ratio of cash flow
to interest-bearing
liabilities (%)
Interest coverage
ratio (times)

Fiscal Year
Fiscal Year
Ended
Ended
December 31, December 31,
2015
2016
70.7
70.7
73.7
85.1

Fiscal Year
Ended
December 31,
2017
71.7
96.0

Fiscal Year
Ended
December 31,
2018
58.6
57.1

Fiscal Year
Ended
December 31,
2019
53.0
46.2

0.6

0.6

0.7

2.9

2.5

128.7

127.1

116.0

62.7

68.5

Notes:
Equity ratio: Total net assets excluding both subscription rights to shares and noncontrolling interests/total liabilities and net assets
Equity ratio (market basis): Total market value of shares issued and outstanding/total net assets
Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/net cash provided by (used in) operating activities
Interest coverage ratio: Net cash provided by (used in) operating activities/interest expenses
1. All indicators are calculated using the consolidated financial statements.
2. The total market value of shares issued and outstanding was calculated by multiplying the closing price at the end of the fiscal year by
the total number of shares issued and outstanding (after subtracting treasury stock) at the end of the fiscal year.
3. The calculations use net cash provided by (used in) operating activities as reported in the consolidated statements of cash flows.
4. Interest-bearing liabilities are all liabilities reported in the consolidated balance sheets that require the payment of interest.
5. In the fiscal year ended December 31, 2018, the Company changed its inventory evaluation method. As the changes to thecorresponding method have been applied retroactively, the figures for the fiscal year ended December 31, 2017 have been retroactively
adjusted.

5(4) Outlook for Fiscal 2020
In the next year, the global economy is expected to see an increase in risks around theworld due mainly to volatility in raw material and fuel costs accompanying the changing
situation in the Middle East as well as the continued protectionist policies of the UnitedStates and the outcome of the presidential election. This is despite the fact that theEuropean and Chinese economies expected to bottom out with the affirmation of
BREXIT and an initial trade deal between the United States and China.
Based on these circumstances, the forecast of operating results for fiscal 2020 is as shown
below. The impact of the novel coronavirus, which is continuing to spread, has not beentaken into account in the forecast.
Furthermore, although we recorded an extraordinary loss in fiscal 2019 related to thelitigation over the fire at the U.S. subsidiary, potential losses that may be incurred going
forward have not been included because it is difficult to reasonably estimate their specificamounts. We will continue working toward a quick resolution.
(Billions of yen, rounded to the nearest hundred million)
575.8
54.2
48.3

Forecast for Fiscal
2020
590.0
60.0
56.0

(2.0)

35.0

Fiscal 2019
Net sales
Operating income
Ordinary income
Net income attributableowners of the parent

toChange (Adjusted)+2.5%+10.8%+16.0%―For the forecast of operating results for fiscal 2020, we assume average exchange rates of¥105 to the U.S. dollar and ¥120 to the euro, as well as a domestic naphtha price of¥43,000 per kiloliter.
[Reference] Forecast of Results by Segment for Fiscal 2020
(Billions of yen, rounded to the nearest hundred million)
Net Sales
Operating Income
Forecast for
Forecast for
Fiscal 2019
Fiscal 2019
Fiscal 2020
Fiscal 2020
Vinyl Acetate
Isoprene
Functional Materials
Fibers and Textiles
Trading
Other BusinessElimination & Corporate
Total

266.1
53.3
126.0
64.5
130.9
51.1

278.0
55.0
131.0
67.0
135.0
51.0

47.4
4.2
3.8
5.7
4.2
0.6

50.5
5.0
5.0
6.0
4.5
1.0

(116.1)575.8(127.0)590.0(11.8)
54.2(12.0)
60.0

6

2. Management Policies(1) Fundamental Management Policies
Kuraray’s mission is: “For people and the planet—to achieve what no one else can.” Basedon this, the Company has established the Kuraray Vision 2026 long-term vision, which we
aim to realize by 2026, the centennial of the Company's founding. The vision for Kuraray
is of being a: “Specialty Chemical Company growing sustainably by incorporating new
foundational platforms into its own technologies.” Kuraray will remain a company thatprovides the world with unmatched specialty products and services while creating value
with society.
(2) Management Indicator Targets, Medium- to Long-Term Strategies and Issues
to Be Addressed
To realize Kuraray Vision 2026, the Group will promote the four key management
strategies listed below that are outlined in the medium-term management plan
“PROUD2020,” which began from fiscal 2018.
1) Pursue competitive superiority
Kuraray will continue to enhance its competitiveness by developing high-value-added
products and applications based on customer needs, strategically reinforcing initiatives
with the understanding that burgeoning emerging countries offer new opportunities,
and achieving innovation and improvement of production and operational processes
through the use of IoT.
2) Expand new business fields
We will expand new business fields through the creation of new businesses byimproving on Kuraray’s own technologies and incorporating external ones, the captureof new business areas by M&A and alliance, and the establishment of a new businessmodel bundling technology and services.
3) Enhance comprehensive strength of the Kuraray Group
Kuraray will establish global business foundations in line with its expanding businesses,
create a workplace in which employees find their jobs rewarding to attract high-quality,
diverse talent from around the world, and cultivate a strong culture of unity within the
Kuraray Group while reinforcing measures to ensure thorough compliance.
4) Contribute to the environment
In the implementation of the three management strategies listed above, the Company
will help improve the natural environment and daily living environment by lowering theenvironmental footprint of its business activities and providing products and services
that help solve environmental and social problems.
In the two years since the launch of the medium-term management plan “PROUD 2020,”
we have strengthened initiatives aimed at building a forward-looking, stable businessportfolio, for example, by investing in a new isoprene plant in Thailand and acquiring
Calgon Carbon Corporation, which is the largest activated carbon producer in the world,
then leveraging our synergies from integration. In addition, we steadily implemented
targeted strategic measures to achieve growth, including expanding facilities for optical-use
poval film and water-soluble PVA films. However, in terms of performance, our results fell
7

short. This was due to a decline in demand as the automobile, display, and electronic device
industries—Kuraray’s main customers—made adjustments in light of global economic
deceleration. In fiscal 2020, the final year of “PROUD 2020,” we expect global economic
growth to slow further and the headwinds in the operating environment surrounding ourbusinesses to continue, making it difficult to achieve planned performance targets. Amid
this environment, we will steadily implement measures targeted at achieving our main
business strategies. We will also focus greater attention on generating cash flows, such as byaccelerating the contribution to results in businesses that conducted capital investment andstepping up the creation of synergies with the acquired activated carbon business. In
addition, we revise strategies in businesses as necessary depending on market changes andother factors, and we intend to connect these efforts with the next medium-term
management plan that will start in 2021. As Kuraray heads toward the 100th anniversary of
its founding, the Group will continue to give its all going forward to achieve astounding
results as a sustainably growing specialty chemical company.
In addition, Kuraray received a cease-and-desist order regarding the manufacture and saleof activated carbon from the Japan Fair Trade Commission on November 22, 2019. In
March 2017, the Company received a cease-and-desist order from the same commission
regarding a bid put forward for the supply of certain KURALON™ products ordered by
the Acquisition, Technology & Logistics Agency. We take seriously the importance of thesituation regarding the two removal orders for violations of the Antimonopoly Act. We
have made compliance with the Antimonopoly Act one of our highest priorities and beenworking full force on various measures to prevent recurrences.
In addition, regarding the aforementioned fire, a civil lawsuit has been brought by over 160
workers of the subcontractor for Kuraray’s U.S. subsidiary, seeking compensation fordamage to their physical and mental health. Although a settlement has been reached withsome of the plaintiffs, the litigation is still proceeding. The plant has since restarted
operations after taking various measures to prevent a recurrence. To ensure a similar fire
does not occur again, the Kuraray headquarters have been conducting safety inspection atoverseas plants since fiscal 2019 and steadily working on making improvements. Fromfiscal 2020 onward, we will continue diligently working to enhance the safety of ourequipment at plants in Japan and overseas, revise and improving management systems andmanuals, enhance employee education, and take other such measures.
Going forward, in line with the idea of “safety is the cornerstone of everything we do” asstated in the Guiding Principles of our corporate statements, we will continue aiming to
globally be a company where people can work comfortably and a safe company where
accidents do not occur.
3. Basic Approach to Selection of Accounting Standards
The Kuraray Group applies Japanese generally accepted accounting principles (“GAAP”).
The Kuraray Group is considering the adoption of International Financial Reporting8

Standards (“IFRS”) and other matters while taking into account various circumstances inJapan and overseas.

9

4. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)
ASSETS
Current Assets
Cash and cash deposits
Notes and accounts receivable—trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent Assets
Tangible fixed assets
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total tangible fixed assets
Intangible fixed assets
Goodwill
Customer-related assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit assets
Deferred tax assets
OthersAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total Assets

10

December 31, 2018

December 31, 201967,022
128,107
32,921
101,081
15,221
36,667
14,315(426)
394,91072,014
121,166
33,341
101,628
15,67934,696
16,661(455)
394,732

74,182204,215
22,70749,4686,837
357,411

79,629205,974
22,062
82,071
25,055
414,793

66,48536,263
41,400144,150

61,35733,06235,514
129,934

29,509218
1,101
12,9936,840(40)
50,622552,184
947,095

28,770189
1,977
13,5067,272(28)
51,688596,416
991,149

(Millions of yen)
LIABILITIESCurrent Liabilities
Notes and accounts payable—trade
Short-term loans payable
Commercial paper
Accrued expenses
Income taxes payable
Provision for bonuses
Other provision
Other
Total current liabilities
Noncurrent Liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liabilities
Asset retirement obligations
Other
Total noncurrent liabilities
Total Liabilities
NET ASSETS
Shareholders’ Equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated Other Comprehensive Income
Valuation difference on available-for-sale securities
Deferred gain or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription Rights to Shares
Noncontrolling Interests
Total Net Assets
Total Liabilities and Net Assets

11

December 31, 2018

December 31, 201945,40846,540―12,201
8,474
6,681
266
25,212
144,785

39,88334,86424,00050,491
4,307
6,578
226
41,317
201,670

50,000120,049
24,951237
5,716
18,065
5,070
11,185235,276
380,062

50,000128,001
13,743347
3,692
22,203
4,671
28,273250,933
452,604

88,95587,207364,841(9,746)531,257

88,95587,197348,289(16,286)
508,156

7,822
1
20,382(4,025)24,181587
11,007567,033
947,095

7,922
(263)
14,575(5,238)16,995663
12,729538,545
991,149

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Loss on disposal of tangible fixed assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Insurance income
Gain on sale of investment securities
Reversal of provision for environmental measuresCompensation income
Total extraordinary income
Extraordinary loss
Loss on litigation
Impairment loss
Loss on disposal of tangible fixed assets
Loss on liquidation of subsidiaries and associates
Disaster loss
Loss on valuation of investment securities
Costs related to the suspension of operations
12

Fiscal 2018
(January 1, 2018 –December 31, 2018)602,996
410,453
192,542

Fiscal 2019
(January 1, 2019 –December 31, 2019)575,807395,125
180,682

34,15092,598
126,748
65,79433,65892,850126,508
54,173

388
1,382
333
1,678
3,783

346
660
361
1,551
2,919

1,280
2,139
1,038
3,951
8,409
61,167

1,398
2,090
1,012
4,320
8,822
48,271

―
―
―
336
336

11,374
1,723
1,009
－
14,107

―
6,662
657
―
1,877
―
1,224

50,590
3,668
1,397
1,242
1,003
860
722

Acquisition related expenses
Total extraordinary loss
Income before income taxes and noncontrolling interests
Income taxes—current
Income taxes—deferred
Total income taxes
Net income (loss)
Net income attributable to noncontrolling interests
Net income (loss) attributable to owners of the parent

13

Fiscal 2018
(January 1, 2018 –December 31, 2018)
1,039
11,46150,041
19,361(3,919)15,441
34,5991,038
33,560(Millions of yen)
Fiscal 2019
(January 1, 2019 –December 31, 2019)―59,484
2,893
15,054(11,243)
3,810
(916)
1,039
(1,956)

Consolidated Statements of Comprehensive Income(Millions of yen)

Net income (loss)
Other comprehensive income (loss)
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Noncontrolling interests

14

Fiscal 2018
(January 1, 2018 –December 31, 2018)
34,599Fiscal 2019
(January 1, 2019 –December 31, 2019)(916)(5,186)604(13,544)(188)(18,314)
16,285100(445)(5,661)(1,213)(7,220)(8,137)

15,247
1,037(9,142)
1,004

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2018 (January 1, 2018 – December 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury stock
Balance at January 1, 2018
Changes of items during
the period
Cash dividends
Net income attributable toowners of the parent
Changes resulting fromadditions toconsolidation
Changes in application of
the equity method
Purchase of treasury stock
Disposal of treasury stock
Other
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at December 31, 2018

Balance at January 1, 2018
Changes of items during theperiodCash dividends
Net income attributable toowners of the parent
Changes resulting fromadditions to consolidation
Changes in application of
the equity method
Purchase of treasury stock
Disposal of treasury stock
Other
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at December 31, 2018

88,95587,219344,653(6,110)Total shareholders’equity514,718(14,691)(14,691)

33,56033,560

14

14

1,303

1,303
(3,735)86(0)(3,735)
98

(12)
(0)

―
―
88,955(12)
87,207

20,187364,841(3,636)(9,746)

16,539531,257

Accumulated other comprehensive income
NonValuation
DeferredForeign
Remeasure- Total accumulated Subscription
Total netrights to controlling
difference on gains orcurrency
ment ofother
assetssharesinterests
available-for losses on translation
definedcomprehensive
sale securities hedges adjustment benefit plansincome13,007(603)
33,681(3,836)42,248539
7,980 565,487―(14,691)―

33,560

―

14

―
―
―

1,303
(3,735)86(0)(5,184)604(13,299)(188)(18,067)47

3,026 (14,993)(5,184)
7,822

604
1

(13,299)
20,382(188)(4,025)(18,067)
24,181

47
587

3,026
11,00715

1,545
567,033

Fiscal 2019 (January 1, 2019 – December 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury stock
Balance at January 1, 2019
Changes of items during
the period
Cash dividends
Net loss attributable toowners of the parent
Purchase of treasury stock
Disposal of treasury stock
Other
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at December 31, 2019

Balance at January 1, 2019
Changes of items during theperiodCash dividends
Net loss attributable toowners of the parent
Purchase of treasury stock
Disposal of treasury stock
Other
Net changes of items otherthan shareholders’ equity
Total changes of items during
the period
Balance at December 31, 201988,95587,207364,841(9,746)

Total shareholders’equity531,257(14,595)(1,956)(9)(0)(14,595)(1,956)(6,617)68(0)(6,617)78――
88,955(9)
87,197(16,551)
348,289(6,539)(16,286)(23,101)
508,156

Accumulated other comprehensive income
NonValuation
DeferredForeign
Remeasure- Total accumulated Subscription
Total netrights to controlling
difference on gains orcurrency
ment ofother
assetssharesinterests
available-for losses on translation
definedcomprehensive
sale securities hedges adjustment benefit plansincome7,822
1
20,382(4,025)24,181587
11,007 567,033―(14,595)――――(1,956)(6,617)
68
(0)

99

(265)

(5,806)(1,213)(7,185)

76

1,722

99
7,922

(265)
(263)

(5,806)
14,575(1,213)(5,238)(7,185)
16,99576663

1,722 (28,488)
12,729 538,545

16(5,386)

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2018
(January 1, 2018 –December 31, 2018)
Net cash provided by (used in) operating activities
Income before income taxes and noncontrollinginterests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Insurance received
Loss (gain) on sale of investment securities
Loss on litigation
Impairment loss
Loss on disposal of tangible fixed assets
Loss (gain) on valuation of investment securities
Foreign exchange losses (gains)
Interest and dividend income
Interest expenses
Decrease (increase) in notes and accounts receivable –trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable –trade
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Other, net
SubtotalInterest and dividends received
Interest expenses paid
Income taxes (paid) refund
Insurance income
Loss on litigation paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net decrease (increase) in time deposits
Net decrease (increase) in short-term investment
securities
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Purchase of tangible fixed assets and intangible fixed
assets17

Fiscal 2019
(January 1, 2019 –December 31, 2019)

50,041

2,893

56,69858,158

(207)
―
―
―
6,662
657
―
704
(1,771)
1,280

22(11,374)(1,723)50,590
3,668
1,397
860
513
(1,006)
1,398(1,001)

5,724(9,096)(781)(2,082)(5,182)

181
(737)
(259)
(4,831)
96,238
1,936(1,199)(21,804)――
75,171

(76)
2,201
(524)
8,183
114,943
1,158(1,396)(19,308)
11,374(11,195)
95,577

1,709(4,984)(1,345)

4,176

(150)

(956)

625

2,658

(65,957)(87,105)

Fiscal 2018
(January 1, 2018 –December 31, 2018)
Payments for disposal of tangible fixed assets andintangible fixed assets
Proceeds from sales of tangible fixed assets andintangible fixed assets
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Sale of investments in subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Net increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Purchase of treasury stock
Proceeds from sale of treasury stock
Cash dividends paid
Proceeds from stock issuance to minority interests
Cash dividends paid to noncontrolling interests
Other, net
Net cash provided by (used in) financing activities
Effect of Exchange Rate Changes on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, Beginning of the Period
Increase in Cash and Cash Equivalents from Newly
Consolidated Subsidiaries
Cash and Cash Equivalents, End of the Period

18(Millions of yen)
Fiscal 2019
(January 1, 2019 –December 31, 2019)(1,525)(1,838)99

587(119,814)

―

―

(134)

(624)
(186,982)(1,773)(89,369)

26,715―90,000(25,860)
40,000(3,735)
59(14,691)
2,254
(265)
(388)
114,088490
24,000
7,744(12,050)―(6,617)
55(14,595)
1,017
(300)
(1,260)(1,517)(1,210)

(70)

1,065
70,234

4,620
71,34545

171,34575,967

(5) Notes regarding Consolidated Financial Statements
Notes regarding Going Concern Assumptions
None
Changes in Accounting Principles, etc.
●Changes in Accounting Principles following Revisions to Accounting Standards
Since fiscal 2019, we have applied IFRS 16 “Leases” for some overseas affiliates.
Accordingly, regarding operating leases (borrower) covered by IAS No. 17, we recognize
right-of-use assets and lease liabilities on the date of adoption. Regarding adoption of thisaccounting standard, the Group adopted a method regarded as a transitory measure
whereby the cumulative effect is recognized on the date of adoption.
As a result, in the fiscal 2019 consolidated balance sheets, under tangible fixed assets, otherincreased ¥17,920 million; under current liabilities, other increased ¥1,161 million; and,
under noncurrent liabilities, other increased ¥17,025 million.
The effect of this change on fiscal 2019 profit and loss and per-share information is minor.
In addition, in the consolidated statements of cash flows, cash provided by operating
activities increased ¥884 million, and cash used in financing activities declined by the sameamount.
Changes in Presentation Methods●Changes following the Adoption of Partial Amendments to Accounting Standard
for Tax Effect Accounting
Kuraray adopted the Partial Amendments to Accounting Standard for Tax EffectAccounting (ASBJ Statement No. 28, February 16, 2018) from the beginning of fiscal 2019.
Accordingly, deferred tax assets are presented under investments and other assets while
deferred tax liabilities are presented under noncurrent liabilities.
As a result, in the consolidated balance sheets for the previous fiscal year, ¥3,794 million indeferred tax assets previously included in current assets and ¥20 million in deferred tax
liabilities previously included in current liabilities are both included in deferred tax assets of¥12,993 million presented under investments and other assets while deferred tax liabilitiesof ¥24,951 million are presented under noncurrent liabilities.
Moreover, the main line item of deferred tax assets is offset by deferred tax liabilities
before being stated, and total assets decreased ¥20 million compared with what they would
have been before the change.
Changes to Accounting Estimates●Provision for Environmental Measures
To prepare for expenses related to the disposal of polychlorinated biphenyl (PCB) waste,
which had been kept in storage and removed from fixed assets, we have recorded estimateddisposal expenses as a provision for environmental measures. However, as we madeprogress in disposing of the waste, we were able to make a more detailed assessment and19revise our estimate. The difference between the original and new estimates is listed asreversal of provision for environmental measures under extraordinary income in fiscal
2019.
As a result, fiscal 2019 income before income taxes and noncontrolling interests increased¥1,009 million.

Segment and Other Information(Segment Information)
1. Segment Overview
The business segments reported by Kuraray are the business units for which the Company
is able to obtain respective financial information separately in order for the Board of
Directors to conduct periodic investigations to determine the distribution of management
resources and evaluate their business results.
Kuraray adopts an in-house company system where each in-house company conducts
business activities and establishes its own comprehensive strategy, both for Japan and foroverseas markets, for the products it handles. In addition, among Kuraray subsidiaries,
Kuraray Trading Co., Ltd. independently conducts propriety planning and sales activities,
including the processing and sale of Kuraray Group products as well as other companies’
products.
Consequently, Kuraray has created five business segments for reporting – “Vinyl Acetate,”“Isoprene,” “Functional Materials,” “Fibers and Textiles” and “Trading” – categorized byproduct group based on the respective in-house companies and the Trading segment.
The Vinyl Acetate segment manufactures and markets functional resins and film, including
PVA, PVB and EVAL™. The Isoprene segment manufactures and markets SEPTON™
thermoplastic elastomer, isoprene-related products and GENESTAR™. The Functional
Materials segment manufactures and markets methacrylic resin, medical products andcarbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers
and textiles, CLARINO™ man-made leather, non-woven fabrics and others. The Trading
segment mainly processes and sells synthetic fibers and man-made leather, and conducts
planning and marketing for other products produced by the Kuraray Group and othercompanies.
2. Methods for Calculating Reporting Segment Net Sales, Income and Loss, Assets
20and Other Items
The accounting method applied to reported business segments is the same as that used increating the consolidated financial statements. Profits from reported segments areoperating income, and intersegment sales and transfers are based on the prevailing market
prices.
●Adoption of IFRS 16 “Leases”
As stated in Changes in Accounting Principles, we have applied IFRS 16 “Leases” for someoverseas affiliates since fiscal 2019. Accordingly, regarding operating leases (borrower)
covered by IAS No. 17, we recognize right-of-use assets on the date of adoption.
●Changes following the Adoption of Partial Amendments to Accounting Standard
for Tax Effect Accounting
As stated in Changes in Presentation Methods, Kuraray adopted the Partial Amendments
to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16,2018) from the beginning of fiscal 2019. Regarding segment assets for the previous fiscal
year, the figures have been retroactively revised to reflect the new accounting standard.

21

3. Net Sales, Income and Loss, Net Assets and Other Items by Reporting Segment
Fiscal 2018 (January 1, 2018 to December 31, 2018)(Millions of yen)
Reporting Segment
Vinyl Isoprene Functional Fibers Trading
AcetateMaterials andTextiles

Total

Other
Business1

Total

Adjustment2 Consolidated
Statements
3of IncomeNet sales
Outside233,214 30,144 111,969 47,287 136,109 558,726 44,269 602,996—
customers
Inter-segment
sales and
46,164 27,062 19,563 17,429 2,739 112,959 13,755 126,714 (126,714)
transfers
Total
279,379 57,207 131,533 64,716 138,848 671,685 58,025 729,710 (126,714)
Segment
54,739 7,272
4,396 6,279 4,215 76,904 1,178 78,082 (12,288)
income (loss)
Segment assets 416,191 62,682 226,542 67,035 46,282 818,733 42,643 861,376
85,718Other items
Depreciation 31,477 2,506 12,563 2,584
58 49,190
892 50,082
2,204
and
amortization(other than
goodwill)
Impairment
6,311
—
189
—
— 6,500
161 6,662—
loss
Amortization
1,804
—
2,603
—
— 4,408
2 4,410—of goodwill
Balance of
18,468— 48,016—— 66,485
0 66,485—
goodwill at
end ofcurrent
periodInvestments——— 2,290— 2,290— 2,290—
in equity
methodaffiliates
Increase in
38,034 4,038
7,341 7,633
53 57,102 2,890 59,993
6,832
tangible fixed
assets andintangible
fixed assets

602,996—
602,996
65,794
947,095
52,287

6,662
4,410
66,4852,290

66,825

Notes:
1. The “Other Business” category incorporates operations not included in businesssegment reporting, including the environmental business and engineering business.
2. Adjustment is as follows: Included within segment loss of ¥12,288 million is theelimination of intersegment transactions of ¥1,622 million and corporate expenses of¥13,910 million. Corporate expenses mainly comprise headquarters’ general andadministrative expenses and the submitting company’s basic research expenses.
3. Segment income is adjusted to agree with operating income in the consolidated
statements of income.
4. Adjustment is as follows: Included with segment assets of ¥85,718 million is theelimination of intersegment transactions of ¥39,349 million and unallocated corporate
assets of ¥125,068 million. Corporate assets mainly comprise the submitting company’s
surplus funds, long-term investments and assets related to basic research andadministrative divisions at headquarters.

22

Fiscal 2019 (January 1, 2019 to December 31, 2019)(Millions of yen)
Reporting Segment
Vinyl Isoprene Functional Fibers Trading
AcetateMaterials andTextiles

Total

Other
Business1

Total

Adjustment2 Consolidated
Statements
3of IncomeNet sales
Outside—customers 225,127 29,058 107,020 50,816 128,139 540,162 35,644 575,807
Inter-segment sales and40,978 24,217 18,961 13,697 2,772 100,626 15,484 116,110 (116,110)transfers
Total
266,105 53,276 125,982 64,513 130,911 640,789 51,128 691,917 (116,110)
Segment
47,368 4,232
3,836 5,654 4,224 65,317
649 65,967 (11,793)
income (loss)
Segment assets 423,596 90,648 219,125 74,500 44,276 852,147 48,471 900,619
90,529Other items
Depreciation 32,361 2,779 11,883 3,125
93 50,242
931 51,174
2,819
and
amortization(other than
goodwill)
Impairment
3,356
170
—
—
— 3,526
60 3,586
81
loss
Amortization 1,591
—
2,572
—
— 4,163
0 4,164—of goodwill
Balance of
16,536— 44,821—— 61,357— 61,357—
goodwill at
end ofcurrent
periodInvestments——— 2,302— 2,302— 2,302—
in equity
methodaffiliates
Increase in
41,467 25,692 11,460 10,729
526 89,875
2,512 92,387
4,978
tangible fixed
assets andintangible
fixed assets

575,807—575,80754,173
991,149
53,993

3,668
4,164
61,3572,302

97,366

Notes:
1. The “Other Business” category incorporates operations not included in businesssegment reporting, including the environmental business and engineering business.
2. Adjustment is as follows: Included within segment loss of ¥11,793 million is theelimination of intersegment transactions of ¥1,888 million and corporate expenses of¥13,682 million. Corporate expenses mainly comprise headquarters’ general andadministrative expenses and the submitting company’s basic research expenses.
3. Segment income is adjusted to agree with operating income in the consolidated
statements of income.
4. Adjustment is as follows: Included with segment assets of ¥90,529 million is theelimination of intersegment transactions of ¥36,506 million and unallocated corporate
assets of ¥127,036 million. Corporate assets mainly comprise the submitting company’s
surplus funds, long-term investments and assets related to basic research andadministrative divisions at headquarters.

23

Related Information
Fiscal 2018 (January 1, 2018 – December 31, 2018) Information by Each Product andService
1. Information by Each Product and Service(Millions of yen)
Net sales to outside
customers

Vinyl
AcetateIsoprene

Functional
Materials

Fibers &Textiles

Other
Business

Total

273,30753,255130,951

88,93056,551

602,996

Notes:
Principal products of each segment are as follows:
Vinyl Acetate: PVA resin and film, EVAL™ resin and others
Isoprene: SEPTON™ thermoplastic elastomer, isoprene chemicals, GENESTAR™
heat-resistant polyamide resin and others
Functional Materials: Methacrylic resin, medical products, carbon materials and others
Fibers and Textiles: KURALON™, CLARINO™ man-made leather, KURAFLEX™
non-woven fabrics, MAGIC TAPE™ hook and loop fasteners,
polyester and others
Other Business: Aqua business, engineering business and others
2. Information by Geographical Segment(1) Net Sales
Japan
192,940

United States
100,736

China
70,528(Millions of yen)
Europe136,122

Asia
75,144

Other Area
27,524

Total
602,996

Note: Net sales are classified by country or area based on customer location.
(2) Tangible Fixed Assets
Japan
146,011(Millions of yen)

United States
133,303

Other Area
78,096

Total
357,411

3. Major Customers
No information is available as there is no single outside customer accounting for 10% ormore of the Company’s total net sales.
Fiscal 2019 (January 1, 2019 – December 31, 2019) Information by Each Product andService
1. Information by Each Product and Service(Millions of yen)
Net sales to outside
customers

Vinyl
AcetateIsoprene

Functional
Materials

Fibers &Textiles

Other
Business

Total

261,241

53,244125,301

92,98643,032575,807

Notes:
Principal products of each segment are as follows:
Vinyl Acetate: PVA resin and film, EVAL™ resin and others
Isoprene: SEPTON™ thermoplastic elastomer, isoprene chemicals, GENESTAR™
heat-resistant polyamide resin and others
Functional Materials: Methacrylic resin, medical products, carbon materials and others
24Fibers and Textiles: KURALON™, CLARINO™ man-made leather, KURAFLEX™
non-woven fabrics, MAGIC TAPE™ hook and loop fasteners,
polyester and others
Other Business: Aqua business, engineering business and others
2. Information by Geographical Segment(1) Net Sales
Japan
184,491

UnitedStates
98,776(Millions of yen)

China

EuropeAsia

Other Area

Total

68,161

127,299

70,913

26,164575,807

Note: Net sales are classified by country or area based on customer location.
(2) Tangible Fixed Assets
Japan
176,998

United States
127,875(Millions of yen)
Other Area
109,919

Total
414,793

3. Major Customers
No information is available as there is no single outside customer accounting for 10% ormore of the Company’s total net sales.
Noncurrent assets and impairment loss by reporting segment
Fiscal 2018 (January 1, 2018 – December 31, 2018)
Omitted because the same information is provided under segment information
Fiscal 2019 (January 1, 2019 – December 31, 2019)
Omitted because the same information is provided under segment information
Amortization of goodwill and unamortized balances by reporting segment
Fiscal 2018 (January 1, 2018 – December 31, 2018)
Omitted because the same information is provided under segment information
Fiscal 2019 (January 1, 2019 – December 31, 2019)
Omitted because the same information is provided under segment information
Negative goodwill by reporting segment
Fiscal 2018 (January 1, 2018 – December 31, 2018)
None
Fiscal 2019 (January 1, 2019 – December 31, 2019)
None

25

Per Share Information

Net assets per share (yen)Basic net income (loss) per share (yen)Diluted net income per share (yen)Fiscal 2018
(January 1, 2018 –December 31, 2018)

1,592.96
96.05
95.86

Fiscal 2019
(January 1, 2019 –December 31, 2019)

1,527.79(5.66)—

Notes: 1. Although there were dilutive securities in fiscal 2019, diluted net income per shareis not stated for the year because a net loss per share was recorded.
2. The basis for the computation of basic and diluted income per share is as follows:

Basic net income (loss) per share
Net income (loss) attributable to ownersof the parent (millions of yen)Amount unallocated to common stock(millions of yen)
Net income (loss) attributable to ownersof the parent allocated to common
stock (millions of yen)
Average number of common stock
outstanding during the fiscal year
(thousand shares)

Fiscal 2018
(January 1, 2018 –December 31, 2018)

Diluted net income per share
Adjustment made on net income(millions of yen)
Increase of common stocks (thousand
shares)[Subscription rights to shares includedin above]
Outline of the residual securities notincluded in the calculation of the diluted
net income

Significant Subsequent Information
None

26

Fiscal 2019
(January 1, 2019 –December 31, 2019)33,560(1,956)―—33,560(1,956)

349,424

345,819

―

—

677

513

(677)
―

(513)
—