Making your dreams come true

Mid-Term Management Plan

Chori Innovation Plan 2019

April 25th, 2017

～Toward New Stage～

FY2017－FY2019

1CHORI CO.,LTD.

Making your dreams come trueIndex

Review of Former Mid-Term Management Plan “Yakushin2016“

１

1.

2.

3.

4.

5.

6.

7.

Vision・Policy

Strategy

Positioning of Mid-Term Management Plan

Business Strategy ～ Fibers, Textiles and Garments ～

Business Strategy ～ Chemicals and Machinery ～

Dividend Policy

Financial Targets of FY2019

Reference: Global Networks３

Mid-Term Management Plan“Chori Innovation Plan 2019”

２

2CHORI CO.,LTD.

Making your dreams come true

Review of FormerMid-Term Management Plan “Yakushin2016“(FY2014-FY2016)

１

3CHORI CO.,LTD.

Making your dreams come true

１

● Ordinary income of FY2016:¥7.0 billion ⇒Highest record(FY2011¥6.1 billion）

● Ordinary income of FY2014-FY2016 in total:

(Plan)…¥20.5 billion (Result)…¥18.5 billion ⇒Achievement rate of 90%

● Profit attributable to CHORI of FY2014-FY2016 in total:

(Plan)…¥13.2 billion (Result)…¥13.2 billion ⇒ Achieved the target plan

P r o f i t

FinancialB a s e

Dividend

Investment

● End of FY2013 equity capital: ¥36.3 billion equity ratio:46%

⇒End of FY2016 equity capital: ¥46.3 billion equity ratio: 47%

● ROA of FY2016 based on ordinary income: 7.1%

● M&A and business investment result for FY2014-FY2016 in total:

¥9.1 billion

●Large-scale M&A, Making Miyako Kagaku Co., Ltd into subsidiary:

invested ¥6.6 billion (May, 2015)

● Dividend ratio of 20%. Dividend increased for last 4 FY

● FY2013: ¥33 per share ⇒FY2016: ¥40 per share

● Resumed paying out interim dividend from FY 2016

Review of FormerMid-Term Management Plan “Yakushin2016“

4CHORI CO.,LTD.

Making your dreams come true

FY2014 FY2015 FY2016

Annual Result Annual Result Plan Annual Result

N e t S a l e s 248.4 291.6 300.0 270.9

Ordinary Income 6.0 5.5 7.5 7.0

Profit attributablet o C H O R I

4.2 4.3 4.8 4.8

Tota l Asse t s 84.3 98.7 94.0 98.0

Equity Capital 41.4 42.8 47.0 46.3

R O A(ord inary income)

7.1% 5.6% 8.0% 7.1%

R O A( n e t i n c o m e )

4.9% 4.4% 5.0% 4.9%

Equ i ty Ra t i o 49% 43% 50% 47%

（Unit: billion yen)

１

P O I N T

：Increased significantly due to M&A of Miyako Kagaku Co., Ltd

：Decreased due to loss of accelerated restructuring of textile business

：Increased by gain on sales of investment securities

：Decreased by reduction of trading business amount due to higher yen

：Record-breaking high

：Achieved the target plan

Review of FormerMid-Term Management Plan “Yakushin2016“

●FY2015(year to year)

●FY2016(year to year)

Net salesOrdinary incomeProfit attributable to CHORI

Net salesOrdinary incomeProfit attributable to CHORI

5CHORI CO.,LTD.

Making your dreams come true

２Mid-Term Management Plan“Chori Innovation Plan 2019”～Toward New Stage～

6CHORI CO.,LTD.

Making your dreams come true

Toward New Stage-Vision of FY2022-

Ordinary Income of 13 billion yen

1．Vision・ Policy

２ Mid-Term Management Plan “Chori Innovation Plan 2019”

Strong Financial Base

Strengthening consolidatedmanagement

Structuring business by investing

Enlargement of group companies

7CHORI CO.,LTD.

Making your dreams come true

Chori Innovation Plan 2019M i d - T e r mManagement Plan

Corporate group cont inues to evo lve andchange on a g loba l sca le , bu i l t on outs tand ing

capab i l i t i es and exper t i se

２．Strategy①

２

Consolidated Management

New Development・Business Investment

and M&A

CorporateGovernance

Human Resource

Mid-Term Management Plan “Chori Innovation Plan 2019”

8CHORI CO.,LTD.

Making your dreams come true２．Strategy②

２

● Promoting consolidated operations

by each business department

● Accelerating further globalization

● Strengthening IT infrastructures and

improving operational efficiency

● Enhancing synergy with Toray Group

Consolidated Management New Development・Business Investment and M&A

● Focusing on investment in growing fields and

areas

● Establish “Business Investment Committee”

● Continue to hold “M&A Promoting

Committee”

● Investment and development of venture

enterprises

● Strengthening internal controlling

system

● Globalized risk management

● CSR・IR

● Improvement in dividend policy

Corporate Governance Human Resource

● Developing globally specialized

personnel

● Design policy on human resources

● Mobilization of employees in Chori Group

● Working-style reforms(reducing overtime

work)

Mid-Term Management Plan “Chori Innovation Plan 2019”

9CHORI CO.,LTD.

Making your dreams come true

7.1 7.2 7.3

7.5

9.0

FY2016 FY2017 FY2018 FY2019 FY2022

Net sales Ordinary Income

271 280

300

330

400

7.0 7.27.8

8.5

13.0

FY2016 FY2017 FY2018 FY2019 FY2022

Recorded everhighest

ordinary income

Breakingour highest record in

ordinary income

（Unit：billion yen）

３．Positioning of Mid-Term Management Plan

２

（Vision）

（Unit：％）ROA（Ordinary income based）

Increasing ROA

（Plan）（Result）

Mid-Term Management Plan “Chori Innovation Plan 2019”

（Plan）（Plan）（Plan）（Result） （Plan） （Plan） （Vision）

10CHORI CO.,LTD.

Making your dreams come true４．Business Strategy ～ Fibers, Textiles and Garments ～

２

Textiles Collective Strength Enhancement Project●Promote integrated business model covering all arrangements from materials to manufacturing

●Reorganize company structure to most optimized management system

(2 operations ⇒3 operations)

１

Strengthen Planning and Solution Services●Transfer apparel business operations to CHORI MODA Co., Ltd.

●Transfer merchandise function to appropriate place and promote direct trading

between overseas countries. (China/Dalian, Vietnam, Thailand, Indonesia)

●Develop and expand sales of original Chori products and environmental products

Accelerate Global Expansion “Global One Stop CHORI”●Establish global framework of six regions (Japan, China, Asia, US, South and Central America,

Europe)

●Improvement in global supply chain management

●Expand business initiated by overseas bases (China, ASEAN)

●Enhance overseas production infrastructure (China・Indonesia)

Net Sales （unit: billion yen）

130.0

111.0

Ordinary Income

4.8

3.9

２

３

Mid-Term Management Plan “Chori Innovation Plan 2019”

（unit: billion yen）

FY2016 Result

FY2019 Plan

FY2016 Result

FY2019 Plan

11CHORI CO.,LTD.

Making your dreams come true５． Business Strategy ～ Chemicals and Machinery ～

２

Promote Further Globalization●Expand overseas business(Focus on ASEAN region, maintain overseas bases)

●Expand China business (Promote collaboration with leading Chinese partners)

Trading Business Model to Business Investing and Converting Business Model●Promoting business investment ⇒ Secure and strengthen procurement sources

(China, Chile, Germany)

●Strengthen and deepen converting function (fine chemicals, condenser materials,processed food)

●Pursue new development (environment related materials, lithium-ion battery materials,

pharmaceutical and agrochemical intermediates)

●Strengthen alliance with subsidiaries after M&A (Miyako Kagaku Co., Ltd., PTI JAPAN LTD)

●Accelerate business cycle of transportation equipment business enabled by company split-up

(Established Chori Machinery Co., Ltd. in April,2017)

Net Sales

200.0

159.9

Ordinary Income

3.7

3.1

１

２

３ Enlargement of Group Companies

Mid-Term Management Plan “Chori Innovation Plan 2019”

（unit: billion yen） （unit: billion yen）

FY2016 Result

FY2019 Plan

FY2016 Result

FY2019 Plan

12CHORI CO.,LTD.

Making your dreams come true

¥36

FY2015（Result）

FY2016（Recent Plan）

FY2017（Plan）

FY2019（Plan）

■■Dividend paid per year(Unit: 1 yen)

Dividend Trends

６．Dividend Policy

２

●Paying performance-linked dividends corresponding to net income attributable to owners of the parent of the year

●Ensuring the flexible return of profits and stability of management and financial affairs

●Maintaining sufficient investment funds for business growth

Dividend Policy

¥40

FY2018（Plan）

Dividend Ratio of 25% or more（FY2017-FY2019）

¥34

FY2014（Result）

¥46

Dividend Ratio of 20%

Mid-Term Management Plan “Chori Innovation Plan 2019”

13CHORI CO.,LTD.

Making your dreams come true

FY2016Annual Result

FY 2019Plan

N e t S a l e s 270.9 330.0

Ord inary Income 7.0 8.5

Profit attributable toC H O R I

4.8 5.5

R O A(Ordinary Income)

7.1% 7.5%

R O A( N e t I n c o m e )

10% 10%Or more

（Unit: billion yen）

７．Financial Targets of FY2019

２ Mid-Term Management Plan “Chori Innovation Plan 2019”

14CHORI CO.,LTD.

Making your dreams come true

Asia（11 bases）

India（1 base）

〈Subsidiary〉・Chori Europe〈Office〉・Moscow

〈Subsidiary〉・Thai Chori・Chori Trading Thailand・Chori Indonesia・Chori Singapore・Chori Malaysia・Chori Korea・Chori Vietnam〈Office〉・Ho Chi Minh・Manila・Dhaka・Cambodia

〈Subsidiary〉・Chori Mexico〈Office〉・Santiago・Lima

〈Subsidiary〉・Chori Iran・Chori Middle East〈Office〉・Istanbul・Jedha

〈Subsidiary〉・Chori India

〈Subsidiary〉・Chori America

〈Office〉・Charlotte

〈Subsidiary〉・Chori China・Chori Shanghai・Chori HongKong・Chori Tianjin・Chori Dalian

〈Office〉・Beijing・Qingdao・Nantong・Wuhan

・Ruian・Guiyang・Shenzhen

Russia・Europe

（2 bases）

Middle East・Africa

（4 bases）

China（13 bases）

North America（2 bases）

South and Central America

（3 bases）

Japan

Reference: Global Networks３

●Subsidiary 18 bases

●Branch・Offices 18 bases

36 bases in total

〈Branch〉・Taipei

Forecasts for operational performances, as well as future predictions

described in this document, were prepared based on information available as

of the day on which this document was released.

This document in no way guarantees the contents and operational

performances of the company in the future.

Making your dreams come true