FY2023 3Q Results(April 1, 2023 - December 31, 2023)

February 7, 2024

1

Performance Overview
FY2023: 3Q Results and Full-Year Outlook(billion yen)
3Q
FY23

3Q
FY22

ChangeFY23
full-year
forecast

Advanced
Materials

49.4

66.1

-16.7

69.0

Specialty
Chemicals

24.5

25.4

-0.9

33.2

Specialty
Plastics

36.5

36.5

+0.0

46.6

Construction

9.3

6.9

+2.3

13.5

Other

13.2

14.1

-0.8

17.7

Segment
Revenue Total

132.9

149.0

-16.1

180.0

Advanced
Materials

6.1

11.5

-5.4

5.1

Specialty
Chemicals

0.9

2.2

-1.20.7

SpecialtyPlastics

7.0

7.5

-0.4

6.9

Construction

0.8

0.4

+0.4

0.8

Other

1.8

2.6

-0.8

2.0

Core Operating.
Profit Total

16.7

24.1

-7.4

15.5

Adjustments

-1.2

0.4

-1.6

-1.5

Operating Profit

15.5

24.5

-9.0

14.0

Profit attributable
to Kureha

10.2

17.7

-7.4

10.5

3Q (9-month) revenue and profit declined year-over-year• Lower sales volume and lower pricing for PVDF, a bindermaterial for automotive LiBs, driven by stagnant demand in
the EV market and continued customer destocking after the1HFY22 procurement boom
• A decrease in equity in earnings of a PPS-related affiliate
partially offset by:• PGA business made a progress in reducing inventory andturned a profit with the recording of a ¥6 billion gain frominventory revaluation until the end of 3Q
FY2023 full-year outlook• Overall business performance in line with the FY23guidance (as announced in November 2023)• Will maintain our full-year financial forecast at this point;
operating profit to be roughly ¥14bn after the incur of onetime corporate expense expected

23Q FY23 Financial Summary (1)(in billions of yen except per-share values)Vs. 3Q FY223Q
FY233QFY22ChangeRevenue

132.9

149.0-16.1(-10.8%)Core operating profit

16.7

24.1-7.4(-30.8%)Operating profit

15.5

24.5

-9.0(-36.9%)

Profit before taxes

16.3

25.1

-8.7(-34.8%)

Profit attributable toowners of Kureha

10.2

17.7-7.4(-42.0%)

Basic profit per share(¥) 180.67*

301.56(Currency exchange rates)
1USD=
1EUR=
1CNY=

I¥143.3¥155.3¥20.0¥136.5¥140.6¥19.9*Kureha conducted a 3-for-1 stock split effective on January 1, 2024.
The above 3QFY22 basic profit per share has been split-adjusted forcomparison purposes.

• Revenue declined due to weakening in
PVDF (LiB binder), agrochemicals,packaging materials and logistics
businesses• Operating profit down on slower PVDF andagrochemical performances, a decrease inequity in PPS-related affiliate’s earnings
and expenses for removing Iwaki Factory
certain facilities, partially offset by a ¥6billion gain from PGA inventory revaluation• Profit before taxes and net profit for theperiod decreased as a result of lower
operating profit

33Q FY23 Financial Summary (2)Revenue & Operating Profit by Segment (vs. 3Q FY22)(in billions of yen)

RevenueCore operating profit

66.1

3QFY22

11.5

3QFY22
3QFY23

3QFY2349.4

7.5 7.0

6.1

36.5 36.5
25.4 24.5
6.9 9.3

14.1 13.2

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

2.2

2.60.9Advanced
機能製品 Specialty
化学製品
Materials Chemicals

0.80.4

1.8

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

Factors affecting operating profit
AM: Slower PVDF sales and a decrease in equity in PPS-related affiliate’s earnings, partially offset by a gainfrom PGA inventory revaluation
SC: Lower agrochemical and pharmaceutical volumes
SP: Weaker packaging material sales partially offset by expansion of home products and fishing lines
CO: Higher private construction volume
OO: Slower industrial waste treatment business4Segment Performance:
Advanced Materials(in billions of yen)

3Q
FY233QFY22Vs. 3Q FY22
Change%Advanced Materials
Advanced plastics

35.2

50.6

-31%Carbon products

6.0

5.2+16%

Other

8.2

10.3-20%

Revenue

49.4

66.1

-25%

Operating profit

6.1

11.5

-47%

Revenue ➘Operating profit ➘Advanced plastics revenue and profit down:- Weaker PVDF (LiB binder) demand in theEV market, continued customer inventory
adjustments- A decrease in equity in PPS-related affiliate’s
earnings+Higher PPS and PGA sales volumes+Effects of PGA inventory revaluation
Carbon products revenue and profit up:+ Higher carbon fiber insulation volume forhigh-heat furnace applications

5Segment Performance:
Specialty Chemicals(in billions of yen)

3Q
FY233QFY22Vs. 3Q FY22Change%

Specialty Chemicals
Agrochemicals

6.6

8.8-25%

Pharmaceuticals

2.7

3.0-8%

Industrial chemicals

8.1

7.2+13%

Other

7.0

6.3+11%

Revenue

24.5

25.4-4%

Operating profit

0.9

2.2-57%

Revenue ➘Operating profit ➘Agrochemicals & Pharmaceuticals revenue andprofit down:- Impact of mandatory drug price revisions- Agrochemicals sales partially postponed to 4Q
Industrial chemicals revenue and profit up:+ Continued price actions to reflect higher rawmaterial cost6Segment Performance:
Specialty Plastics(in billions of yen)

3Q
FY233Q
FY22

Vs. 3Q FY22
Change%Specialty Plastics
Home products

19.0

17.9+6%

Fishing lines

3.7

3.5+4%

Packaging materials

11.1

11.8-6%

Other

2.8

3.2

-15%

Revenue

36.5

36.5+0%Operating profit

7.0

7.5-6%

Revenue →Operating profit ➘Home products & Fishing lines revenue andprofit up:+Higher pricing for food wrap film (in and after
3-4QFY22)
Packaging materials revenue and profit down:- Slower sales of heat-shrink multilayer
film and PVDC film
- Weaker demand, intensified competition

7Segment Performance:
Construction(in billions of yen)

3Q
FY233Q
FY22

Vs. 3Q FY22
Change%Construction

Revenue ➚Construction

Revenue

9.3

6.9+33%Operating profit

0.8

0.4+96%

Operating profit ➚+ Higher private construction volume

Other operations

Other operations
Environmentalengineering

8.4

8.5-1%

Logistics

1.2

2.0-39%Hospital operations

3.2

3.1+2%

Others0.4

0.5-12%

Revenue

13.2

14.1-6%

Operating profit

1.8

2.6-30%

Revenue ➘Operating profit ➘• Environmental engineering revenue and profit
decreased on lower industrial waste treatment
volume• Logistics revenue and profit down• Hospital operations loss widened despite revenue
growth8

Financial Position(in billions of yen)

AssetsLiabilities and Equity
Dec. 312023

Mar. 312023

Increase/
Decrease

Dec. 312023

Mar. 312023

Increase/
Decrease

Cash and cash equivalents

25.2

32.2

-7.0

Trade and other payables

22.5

27.7

-5.1

Trade and other receivables

32.6

31.9+0.7

Interest-bearing debt

56.5

26.3

+30.2

Inventories

55.5

52.0

+3.5Provisions

6.6

8.5

-1.9

Other current assets

5.7

4.9

+0.8

Other liabilities

19.0

17.2

+1.8

Total current assets

119.0

121.0

-2.0

Total liabilities

104.6

79.6

+24.9

Property, plant and equipment

137.4

117.4

+20.0 (*1)

Shareholders’ equity

18.2

18.2

--

Intangible assets

6.3

4.5

+1.9

Capital surplus

14.7

14.7

--

Investments and other assets

59.5

53.5

+6.0

Less: Treasury stock-9.6-8.7 (*2)-0.9

Retained earnings

176.2

179.0 (*3)

-2.7

Other components of equity

16.5

12.1+4.5

Non-controlling interests

1.7

1.6

+0.1

Total non-current assets

203.2

175.4

+27.8

Total equity

217.7

216.8

+0.9

Total assets

322.2

296.4

+25.8

Total liabilities and equity

322.2

296.4

+25.8

Note that by Dec. 31, 2023, construction in progress for PVDF facility expansion increased, and interest-bearing debt such as bonds
increased as capital for this increase. Also note Kureha disposed of 1,280,000 treasury shares on June 30, 2023 prior to a 3-for-1 stock split.
*1 Construction in progress (+¥12.7bn)*2 Disposal of treasury shares (+¥9.1bn), acquisition of treasury shares (-¥10.0bn)*3 Disposal of treasury shares (-¥9.1bn), net income (+¥10.2bn), dividend payment (-¥5.3bn)

9PVDF Business
PVDF business revenue trends
電池向け
LiB application
素材向け
Other applications• Demand for automotive LiBs is expected to growcontinually for a medium to long term, although its
growth is currently stagnant due to slower EU
economy and LiB inventory adjustments.
• Our PVDF sales volume will likely remain at 34QFY22 levels throughout FY23 and return to riseduring FY24 after the recovery of the European EVmarket and customer inventory adjustments.

2021H11H
FY212021H22H
FY212022H11H
FY222022H22H
FY222023H11H
FY232023H22H
FY23予想(estimate)• As drastic falls in raw material prices ease, marginexpansion is now expected in FY24 following thedestocking of remained high-cost inventory.
• With our technological advantages of PVDF binder for
NMC-typed Li batteries, we aim for volume growth in
the expanding EV market in both Europe and North
America for a mid-/long-time span.

PVDF sales volume (index)*When assuming 1H/FY21 sales volume as 100
100• In response to the US Inflation Reduction Act andother geopolitical risks, we are already on track toprocure raw materials for PVDF from multiple sources.
50
22/3上期
1H

22/3下期
2H

23/3上期
1H

23/3下期
2H

24/3上期
1H

24/3下期
2H

FY21

FY21

FY22

FY22

FY23

FY23
予想(estimate)

10PGA Business
PGA business revenue trends• The US active rig count (the number of completedwells) for the production of shale oil and gas is 90% ofthe pre-pandemic level. Meanwhile, the frac plug
market is forecast to grow steadily as the number offrac plugs used for each well is increasing.
• Under slower market conditions, Kureha continues toexpand the PGA frac plug business with strategic
flexible pricing (implemented in Fall 2020) and byenhancing the plug’s ‘full bore’ application (use for anentire wellbore) in mid-/high-temperature wells.

1H
2H
1H
2H
1H
2H
22/3上期
22/3下期
23/3上期
23/3下期
24/3上期
24/3下期
FY21
FY21
FY22
FY22
FY23
FY23
予想(estimate)• In FY23, Kureha successfully launched an improved
short-sized frac plug.
• A new product targeted for use in low-temperature
wells, which comprise more than 50% of the US shale
market, is now undergoing field tests and to belaunched by end FY24.

PGA frac plug sales volume (index)*When assuming FY19 volume as 100%500%
500%0%
0%
20/3
FY1921/3
FY20

22/3
FY21

23/3
FY22

24/3
FY23(estimate)予想（10）

11

Home Products Business
Home products business revenue trends• The Japanese household warp film market saw a sales
volume decrease during the second half of FY22 due
to price increases. However, the market is alreadyrebounding and is expected to remain stable.

¥ billion
10100• Kureha expects to record FY23 home products
revenue and operating profit consistent with prior years
as price actions for New Krewrap, implemented in 34QFY22, will likely offset a slight volume decrease.

505

022/3上期
22/3下期
23/3上期
23/3下期
24/3上期
24/3下期
1H
2H
1H
2H
1H
2H
FY21
FY21
FY22
FY22
FY23
FY23
予想(estimate)

Japan household wrap film marketmil. square meters(Surface volume)

1,500

1,0005001H
22/3上期
FY212H
22/3下期
FY211H23/3上期FY222H
23/3下期FY221H24/3上期
FY23(Data source: INTAGE SRI+®)

12Strengthening the Management Base

Implementation of a stock split
Kureha implemented a 3-for-1 stock split for eachshare held by shareholders of record at the close of
trading on December 31, 2023. It is aimed to reducethe minimum investment price and make thecompany’s shares more accessible to investors, andthereby increase the liquidity of shares and further
expand its investor base.

Completion of FY23 share buyback
Kureha completed its share repurchase program approvedby the Board of Directors on May 12, 2023 as follows:
Period of repurchase: May 15, 2023 – November 24, 2023
Number of shares repurchased: 1,177,000 shares
Repurchase cost: ¥9,999,285,000

Initiatives to improve cost of capital andstock priceTo carry out management duties with moreconsideration for cost of capital and stock price, asrequested by the Tokyo Stock Exchange, Kureha
has clarified its effort on the following aspects in thecompany’s Corporate Governance Report.
Kureha Corporate Governance Report(revised Dec. 21, 2023)
・Action to implement management that is conscious of
cost of capital and stock price・ Improving ROE・ Improving PER・ Proactive dialogue with investors, etc.
https://www.kureha.co.jp/en/ir/pdf/20231221_CGReport_en.pdf

13Disclaimer•

This presentation material is intended to provide you with a better
understanding of our company and is not intended as a solicitation of
any investment or other activity.

•This material has been prepared by our company based on information
available as of the date of the presentation. Actual results many differ
materially from those presented in this material as a result of variousfactors.

•Please use this material at your own discretion and responsibility.