FY2022 1Q Results

August 9, 2022

1Highlights
FY2022 1Q Results
YoY: Delivered strong revenue and profit growth driven bybroad-based pricing actions for advanced plastics andvolume gains in Advanced Materials, more than offsetting
higher fuel and raw material costs and increased SG&A
expenses in Specialty Chemicals and Specialty Plastics
QoQ: Both revenue and profit up sequentially due primarily
to expanded PVDF and agrochemicals sales and seasonal
demand for home products, coupled with the absence ofimpairment losses recorded in 4Q/FY21

1Q/FY21 4Q/FY211Q/FY22

YoY

QoQAMSCSP
CO & OtherAdjustments

1.0-0.0
2.3
1.0
0.0

5.8
-0.7
1.3
1.1-5.5

5.6
-0.3
2.1
0.7
0.0+4.7
-0.3
-0.2
-0.3
-0.0

-0.1
+0.4
+0.8
-0.4
+5.5

Core operating
profit4.3

2.0

8.1+3.9+6.2

FY2022 2Q(Half-year) Outlook
Vs. FY21 2Q: Projecting top and bottom line growth as
Advanced Materials sales continue to expand, partially offset
by inflationary impacts on Specialty Chemicals and Specialty
Plastics and slower environmental businesses related toindustrial waste treatment. 2Q profit growth likely to slow
down verses 1Q with further impacts of surging energy andraw material prices.
Vs. Initial forecast: Upgrading 2Q forecast to reflect limited
impact of presumed risks seen during 1Q; expected revenue
expansion led by a weaker Japanese yen, higher prices andhigher agrochemical sales volumes (a front-loaded delivery);and spending of SG&A expenses postponed to 3Q-4Q*Kureha will continually monitor the impact of potential risks andannounce its updated full-year forecast based on changes in thebusiness conditions when reporting 2Q results.

2Q/FY212Q/FY22 2Q/FY22Vs.
Vs.
Initial Revised
Initial2Q/FY21
forecast forecast
forecast

AM

2.6

5.2

7.5+4.9+2.3

SC

1.2

0.5

0.8

-0.4+0.3

SP

5.1

3.5

3.7

-1.4+0.2

CO & Other

2.2

1.3

1.3

-0.9+0.0

Adjustments

0.2-0.5-0.3-0.5+0.2

Core operating
profit11.4

10.0

13.0+1.6+3.0

2FY2022 1Q Summary (1)(in billions of yen)

Vs. FY2021 1Q

FY20211Q

FY20221QRevenue

37.8

49.3

Core operating profit

4.2

8.1

Adjustments
Other income
Other expenses

0.0
0.1
0.1

-0.0
0.2
0.2

-0.1
0.1
0.1

• Operating profit increased as a result of higher
core operating profit

Operating profit

4.3

8.1

3.9

• Profit attributable to the Company increased asa result of higher profit before taxes

Financial income
Financial expenses

0.2
0.1

0.4
0.1

Profit before taxes

4.4

8.5

Profit attributable toowners of Kureha Corp.

3.3

5.5

¥169.26¥279.79

Profit per share (¥)[References] FOREX ¥/USD:¥/EUR:¥/CNY:¥109.5¥131.9¥17.0¥129.7¥138.3¥19.6

ChangeYOY

11.4(+30.2%)

3.9(+92.1%)(+91.4%)

0.2
-0.1
4.2
(+95.4%)2.2(+65.3%)• Revenue growth led by advanced plastics,
particularly PVDF binder for lithium-ionbatteries• Higher core operating profit driven by strong
gains in advanced plastics

3

FY2022 Q1 Summary (2)(in billions of yen)

Performance by Segment (vs. 1Q/FY21)

24.5

RevenueCore operating profit
前期
1Q/FY21

14.2
11.2

5.6

当期
1Q/FY2211.9

2.6 1.94.4 4.3

Other
Advanced
Specialty Specialty
機能製品 化学製品
樹脂製品 Construction
建設関連 その他関連
Operations
Materials Chemicals Plastics

当期1Q/FY220.1 0.1

0.9 0.6

2.3 2.1

1.05.3 6.6

前期
1Q/FY21-0.0-0.3

Advanced
機能製品 Specialty
化学製品
Materials Chemicals

OtherSpecialty
樹脂製品 Construction
建設関連 その他関連
Operations
Plastics

Factors attributing to changes in core operating profit
AM: Sales expansion of PVDF, PPS, PGA and other plastic products
SC: Higher agrochemicals volumes more than offset by impact of mandatory drug price revisions andhigher fuel and raw material costs
SP: Higher packaging materials volumes more than offset by slower home product and fishing line sales
CO: Fewer private construction projects
OO: Decreased volumes related to industrial waste treatment

4Segment Performance:
Advanced Materials(billions of yen)

FY2021
1Q

FY2022 Change%
1Q

Advanced Materials
Advanced plastics

9.7

19.2+98%

Carbon products

1.5

1.5+7%

Other

3.1

3.7+20%

Revenue

14.2

24.5+72%

Operating profit

1.0

5.6+481%

Vs. FY2021 1Q

Revenue ➚Operating profit ➚Advanced plastics
Revenue up, profit up:- Continued strong demand for PVDF in theautomotive LiB market- higher PPS and PGA sales volumes
Carbon products
Revenue and profit leveled off:
- Sales volumes of carbon fiber used for highheat furnace insulation and automotive sliding
materials on par with prior year

5

Segment Performance:
Specialty Chemicals(billions of yen)

FY2021
1Q

FY2022 Change%
1Q

Specialty Chemicals
Agrochemicals

0.7

1.6+130%

Pharmaceuticals

1.2

1.1-14%

Industrial chemicals

1.7

2.1+25%

Other1.7

1.9+9%

Revenue

5.3

6.6+24%

Operating profit-0.0-0.3--

Vs. FY2021 1Q

Revenue ➚Operating profit ➘Agrochemicals & Pharmaceuticals
Revenue up, profit down:- Higher fungicides volumes- Decreased sales volume of Kremezin, atherapeutic agent for chronic kidney failures
Industrial chemicals
Revenue up, profit down:- Improved sales volumes of organic and nonorganic chemicals- Higher raw material and fuel costs6Segment Performance:
Specialty Plastics(billions of yen)

FY2021
1Q

FY2022
1Q

Vs. FY2021 1Q
Change%Specialty Plastics
Home products

5.9

5.8-2%

Fishing lines

1.3

1.2-6%Packaging materials

3.0

3.8+26%

Other

1.0

1.1+12%

Revenue

11.2

11.9+6%

Operating profit

2.3

2.1-9%

Revenue ➚Operating profit ➘Home products & Fishing lines
Revenue down, profit down:- Slower sales of NEW Krewrap (home-use foodwrap film) and Seaguar fishing lines
Packaging materials
Revenue up, profit up:- Sales expansion led by heat-shrink multilayer
film and PVDC film

7

Segment Performance:
Construction(billions of yen)

Vs. FY2021 1Q

FY2021
1Q

FY2022
1Q

Change%4.5

3.9-13%-1.9-2.0--

Revenue

2.6

1.9-27%

Operating profit

0.1

0.1-17%

Construction
Construction

Elimination(Intercompany sale)

Construction

Revenue ➘Operating profit ➘- Fewer private construction projects- Flat volume growth in public construction

Other Operations

Other Operations
Environmentalengineering
Logistics
Hospital operations
Others

Revenue ➘Operating profit ➘3.2

2.9-9%

2.0
1.0
0.6

2.0
1.1
0.6-2%+5%-2%• Logistics revenue and profit on par with prior year

-2.4-2.3--Revenue

4.4

4.3-3%• Hospital Operations revenue and profit on par withprior year

Operating profit

0.9

0.6

-29%

Elimination(Intercompany sale)• Environmental engineering revenue and profit down
due mainly to decreased industrial waste treatment
volumes, including low-level PCB wastes

8

Financial Position(billions of yen)

AssetsLiabilities and Equity
Mar. 312022

Jun. 30
Change2022

Mar. 312022

Jun. 30
Change2022

Cash and cash equivalents

30.6

28.3

-2.3

Trade and other payables

29.5

29.5

0.0

Trade and other receivables

35.8

39.1

3.3

Interest-bearing debt

28.5

30.8

2.3

Inventories

41.7

46.1

4.4Provisions

8.2

6.3

-2.0

Other current assets

4.3

7.2

2.9

Other liabilities

15.7

17.1

1.4

Total current assets

112.4

120.8

8.3

Total liabilities

81.9

83.7

1.8

Property, plant and equipment

114.4

116.0

1.5

Shareholders’ equity

18.2

18.2

-

Intangible assets

4.0

4.4

0.4

Capital surplus

14.7

14.7

-

Investments and other assets

51.7

49.5

-2.2

Less: Treasury stock

-8.7

-8.7

0.0

Retained earnings

166.0

168.6

2.6

Other components of equity

9.0

12.7

3.7

Non-controlling interests

1.5

1.5-0.0

Total non-current assets

170.2

169.9

-0.3

Total equity

200.7

207.0

6.3

Total assets

282.6

290.7

8.1

Total liabilities and equity

282.6

290.7

8.1

Note: Kureha signed an agreement to sell its equity held in Nantong SKT New
Material Co. on June 10, 2022. Subsequently, a total of ¥3.3 billion under‘Investments and other assets’ has been reclassified as ‘Other current assets.’

9PGA & PVDF Business Updates
Revenue: PGA

Revenue: PVDF

¥ billion

15150
電池向け
LiB binder

1.515¥ billion

Other
素材向けapplications

101001.010550

50.50000• The LiB market continues to grow with increased
demand for electric vehicles (BEV, PHEV),showing promising long-term growth amid global
carbon neutrality initiatives and automakers’
focus on green cars
• Recorded continued sequential growth in PVDF
revenue as we raised prices to absorb higher raw
materials costs and boosted the production for
high-margin specialty polymers• The shale oil and gas market is gradually recoveringin post-pandemic economy, driven by surging
energy prices• Since Fall 2020, Kureha PGA frac plug has been
increasingly adopted for full-bore application(developing an entire wellbore vs. a toe part) due toour flexible pricing• Will increase our share in mid/high-temperature
well application and launch an improved PGA fracplug for low/extra low-temp wells by end of FY2022

10Revisions to FY2022 2Q Forecast(in billions of yen)

FY2022Q2
Initialforecast

Changes inforecast

90.0

10.0
(+11.1%)10.5

2.8(+26.7%)

-0.0
-0.4
0.2

0.0
0.1
0.6

---0.2

1.6

10.0

3.0
(+30.0%)

0.4
-0.1

0.2
0.2

0.4
-0.1

2.0

10.0

3.5(+35.0%)

7.5

2.0(+26.7%)

FY2021Q2

FY2022Q2
RevisedforecastRevenue

79.1

100.0

Core operating profit

11.1

13.3

Adjustments
Other income
Other expenses

0.0
0.5
0.2

-0.1
0.4

Operating profit

11.4

13.0

Financial income
Financial expenses

0.2
0.2

0.6
0.1

Profit before taxes

11.5

13.5

Profit attributable toowners of Kureha Corp.

8.3

9.5

¥426.73¥486.74¥384.27¥109.8¥130.9¥17.0¥131.0¥141.0¥19.0¥120.0¥132.0¥18.5

Profit per share (¥)
FOREX ¥/USD:¥/EUR:¥/CNY:

ChangeYoY

20.9(+26.5%)

2.2(+19.6%)(+14.4%)(+17.9%)1.2(+14.1%)

11Revisions to FY2022 2Q Forecast(in billions of yen)Segment Performance (vs. Initial forecast)
RevenueCore operating profit

47.0

7.5

2023/3当初予想
2Q Initial forecast

41.5

2023/3今回予想
2Q Revised forecast

2023/3当初予想
2Q Initial forecast
2023/3今回予想
2Q Revised forecast

5.2

22.0 23.5

3.5 3.7

16.5

13.5

4.5

8.5

機能製品 化学製品
建設関連 その他関連
OtherAdvanced
Specialty 樹脂製品
Specialty Construction
Operations
Materials Chemicals Plastics

1.1

0.5 0.8
機能製品
AdvancedMaterials

化学製品
Specialty
Chemicals

Factors attributing to changes in core operating profit
AM: Marginal impact of presumed risks
SC: A front-loaded shipment of some agrochemicals (moved up from 2H)
SP: Better-than-forecast sales of fishing lines and other plastic products
CO: (Unchanged from initial forecast)
OO: (Unchanged from initial forecast)

0.2
樹脂製品
建設関連 その他関連
OtherSpecialty Construction

PlasticsOperations

FY2022 Full-Year Outlook & Risk Management12➢ As some risks still remain to possibly affect our operations, Kureha will update andannounce its full-year earnings forecast based on changes in the business conditions whenreleasing 2Q results (scheduled for November 9, 2022)
Risks reflected into our initial full-year forecast (announced on May 12, 2022):
Risks associated with the Ukraine crisis and China pandemic restrictions including;- Raw material and energy prices remaining at high levels (to be partially offset by pricing actions)- Logistics cost inflation, increased purchasing cost for Specialty Plastics→Will further impact the cost of sales in and after 2Q- Slower market growth surrounding electric vehicles and Li-ion batteries- Reduced PVDF and carbon fiber production and sales due to prolonged pandemic lockdowns in China➢ To address these risks, Kureha has taken the following measures:• Increase prices to pass on higher fuel, raw material and logistics costs to customers
Liquid caustic soda: up ¥30/kg or more (August 1, 2022-)
Home products and packaging materials: up 10-35% (October 1, 2022-), etc• Optimized Advanced Materials manufacturing operations in Japan and China to ensure steady supply• Made necessary arrangements to enable continuous manufacturing operations at the China PVDF
facility in case of pandemic lockdowns• Increased storage capacity for raw materials for PVDF in Japan

13Disclaimer•

This presentation material is provided for a deeper understanding of ourcompany, and is not intended to be used as a solicitation for investment orother activities.

•This material has been prepared by our company based on the information
available at the time of the presentation. Actual results many differ
materially from those presented in this material due to various factors.

•Please utilize this material using you own judgment and responsibility.