Medium-term Corporate Business Plan

The Kurabo Group has formulated a new three-year medium-term management plan, “Creation’21,” with the target year of fiscal year 2021, and started it from April this year.


“Creation ’21” is positioned on the first stage of the Kurabo Group “Long-Term Vision 2030,” which also started from April. Under the “Long-Term Vision 2030,” we set becoming a “Strong corporate group that generates innovation and high profit” as the ideal form for the Group in 2030 so “Creation’21” will be an important action plan to realize that.

Under the previous medium-term management plan, “Advance’18,” we set our basic policy as “Business transformation for revenue expansion” and implemented various measures, including the expansion and strengthening of overseas business, the restructuring of domestic business, the transformation into a market-oriented business focused on the future market, and the pursuit of highly profitable business, etc. However, despite the steady progress we have made, the business environment has changed more rapidly than expected, sales have declined due to withdrawal from unprofitable businesses and business cutbacks, and the establishment of new businesses and businesses to supplement these has been delayed, etc. As a result, we have not achieved satisfactory results.

Based on the lessons learned from “Advance’18” and its results, under “Creation’21,” the Group will continue to work on various “Advance’18” measures as well as create innovation from the perspective of how we can contribute to society. We will reform our business model, establish a highly profitable business structure, and work on the improvement of corporate value.

In addition, in order for the Group to work together to achieve the plan in combination with the start of “Long-Term Vision 2030” and “Creation’21,” we renewed our Management Philosophy to be “We, the KURABO Group, will contribute to building a better future society through the creation of new value.”


Overview of Creation ’21

1. Consolidated results targets

(unit: billion yen)

 Fiscal year 2018 (base year)Fiscal year 2021 (target year)
Net sales 157 170
Operating income 5.6 9
Ordinary profit 6.1 9.5
Net profit 4.6 6.5
ROA 3.1% 5.0%
ROE 4.9% 6.6%

Note:ROA means return on assets and ROE means return on equity.

Results by business segment

(unit: billion yen)

 Net salesOperating income
 Fiscal year 2018
(base year)
Fiscal year 2021
(target year)
Fiscal year 2018
(base year)
Fiscal year 2021
(target year)
Textiles 59.7 62.2 -900 800
Chemical Products 61.1 68 1.9 3.5
Advanced Technology 21 24 2.2 2.3
Food & Services 10.6 12 900 1.2
Real Estate 4.4 3.8 3 2.5
Elimination or corporate (*) - - -1.6 -1.3
Total 157 170 5.6 9

(*) The breakdown of “Elimination or corporate” is mainly for R&D expenditures not attributable to any segment.


2. Overview of priority policies by business segment

 While investing management resources positively towards growth and priority business in each business field, we will strive to build a business model that leads to the expansion of our business operations and earnings. In addition, we will also focus on the development and provision of products and services that help solve social issues, including contributions to the SDGs, etc. Our main priority measures in each business segment are as follows.


[ Textiles ]

  • Expansion of sales of high-value-added products based on the building of a new business model
  • Improvement of competitiveness based on smart factories utilizing AI and IoT
  • Restructuring and expansion of global operations


[ Chemical Products ]

  • Expansion of business operations based on the concentration of management resources on high-value-added business (high performance resin processed products, functional films, high performance materials)
  • Rebuilding of core business (urethane foam and building materials), development of new products and expansion of new markets
  • Pursuit of the expansion of global business and synergistic effects based on the strengthening of cooperation with affiliated companies


[ Advance Technology ]

  • Development of improved system products using AI in fields such as robotics, inspections and measurement, and genetics, etc.
  • Expansion of infrastructure-related products and renewable energy-related products
  • Expansion of sales of machine tools (horizontal boring and milling machines) centered on overseas bases


[ Food & Services ]

  • Expansion of B-to-B business centered on freeze-dried foods
  • Strengthening of orders for large banquets and inbound tours at Kurashiki Ivy Square (hotel business) and attraction of customers through large-scale renovations


[ Real Estate ]

  • Restructuring of real estate rental business aimed at maintaining and securing long-term stable earnings

3. Investment of management resources

(1) Aiming for the expansion of our business operations, we will invest a cumulative total of about 22 billion yen in facilities over 3 years, including the expansion of functional film production lines, the expansion of fiber material reforming facilities, the large-scale renewal of Kurashiki Ivy Square, and using AI and IoT to make plant facilities smarter and update aged facilities, etc. In addition, we will also invest positively in business, including M&A and capital alliances, etc., as required.


(2) At our Technical Research Laboratory, which plays the role of creating new businesses for the Group, we utilize R&D resources efficiently to develop further the core technologies we have cultivated thus far and promote business development activities focused on the four fields of semiconductor technology, robotic sensing, highly functional compound materials, and the life sciences.


(3) We will focus on the establishment of an environment and systems within which diverse human resources can make the most of their individual abilities and work healthily, energetically and flexibly. In addition, we will also strive to secure human resources who can play an active role in any environment and to develop “next generation leaders.”


4. Creation of a trustworthy company

(1) Strengthening of corporate governance
As part of the creation of a company that is trusted by stakeholders including shareholders, customers, employees and local communities, we will implement management based on the “Kurabo Corporate Governance Guidelines” and make efforts to strengthen corporate governance to conduct fair and transparent business activities.
In addition, we will establish a voluntary advisory committee, centered on independent outside directors, that will discuss nominations and compensation for directors, etc.


(2) Strengthening and promotion of CSR activities
① Under the supervision of the Kurabo CSR Committee, we will further strengthen the activities of each CSR Expert Committee, including the strengthening of systems to implement ethical business activities, the thorough implementation of internal education, the reduction of environmental impacts, such as CO2 reductions and the promotion of zero emissions, and the promotion of diversity, etc.
② Strengthening of the quality assurance system
We will focus on the strengthening of our quality assurance system through the activities of the newly established Quality Assurance Committee and Quality Audit Group.
③ Contributions to the SDGs (Sustainable Development Goals)
Based on the Group’s management philosophy, “We, the KURABO Group, will contribute to building a better future society through the creation of new value,” we will reach that goal through the SDGs.


(3) Strengthening of relationships with shareholders, customers and local communities
We will strive to build and maintain good relationships with shareholders, customers and local communities by maintaining a stable dividend policy, supplying the products and services the market demands and ensuring continuous employment, etc. We will also focus on raising corporate recognition through the enhancement of public relations activities, etc.


The business results and other information contained in this document are based on the Group’s projections assuming the business environment, etc., prevailing at the time the document was prepared, and do not promise or guarantee the realization of future numerical results or measures published in this document.