FY2021 1Q Results

August 5, 2021

1

FY2021 1Q Overview(in billions of yen)

Vs. FY2020 1Q• Revenue recovered in Advanced Materials
after the pandemic-related slump• Higher core operating profit supported by
Advanced Materials, Specialty Plastics andOther Operations

Revenue

FY20201Q

FY2021
1Q

31.5

37.8

2.5

4.2

2.5

4.3

2.8

4.4

2.0

3.3

Core operating profit• Operating profit improved as a result of higher
core operating profit

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

Profit before taxes
Profit attributable toowners of theCompany

ChangeYOY

6.4(+20.3%)

1.7(+67.6%)

1.7(+69.4%)

1.5(+54.4%)

1.3(+61.2%)

Performance by segment
Revenue
14.2
10.6 11.2

Core operating profit
FY20 1Q
FY21 1Q

8.7

FY20 1Q
FY21 1Q

2.3
1.8

1.0
5.3 5.3

2.7 2.6

4.3 4.4-0.3

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

0.2 0.1

0.2

機能製品
Advanced
Materials

0.60.9-0.0
化学製品
Specialty
Chemicals

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

2

FY2021 1Q Overview
FY2020 1Q
Revenue
Segment operating profit(in billions of yen)
AM

8.7
-0.3

SC

5.3
0.2

SP

10.6
1.8

CO

2.7
0.2

OO

4.3
0.6

Intersegment adjustment
Other income
Other expenses

Operating profit
Finance income
Finance costs
Profit before income tax
Profit for the period

FY2021 1Q

AMRevenue

14.2
1.0

Segment operating profit
Intersegment adjustment
Other income
Other expenses
Operating profit
Finance income
Finance costs

Profit before income tax
Profit for the period

SC

5.3
-0.0

SP

11.2
2.3

CO2.60.1OO

4.4
0.9

Total

31.5
2.5
0.0
0.1
0.1
2.5
0.4
0.0
2.8
2.0
Total

37.8
4.2
0.0
0.1
0.1
4.3
0.2
0.1
4.4
3.3

3

Segment Results: Advanced Materials
Vs. FY2020 1Q(billions of yen)

FY20201Q

FY2021
1Q

Change%Advanced Materials
Advanced plastics

5.0

9.7+95%

Carbon products

1.4

1.5+7%

Other

2.3

3.1+34%

Segment revenue

8.7

14.2+65%

Segment operating profit-0.3

1.0--Revenue

Operating Profit

Advanced plastics
Operating profit improved on higher sales
volumes of PVDF, PPS and PGA: continued
strong demand for PVDF binder in theautomobile LiB market; enhanced production for
PPS at a new facility; and PGA frac plugs sales
steadily recovering in the post-pandemic shale
oil and gas market
Carbon products
Operating profit remained flat despite higher
sales volumes of carbon fiber insulation products
for industrial high-heat furnaces

4Segment Results: Specialty Chemicals
Vs. FY2020 1Q(billions of yen)

FY20201Q

FY2021
1Q

Change%Specialty Chemicals
Agrochemicals

1.4

0.7-52%

Pharmaceuticals

1.1

1.2

+11%

Industrial chemicals

1.4

1.7+20%

Other

1.4

1.7+22%

Segment revenue

5.3

5.3-0%

Segment operating profit

0.2-0.0--Revenue

Operating Profit

Agrochemicals & Pharmaceuticals
Sales volume growth of Kremezin, atherapeutic agent for chronic kidney failures,
more than offset by a volume decline inagrochemical fungicides, together yielding
lower operating profit
Industrial chemicals
Operating profit improved on higher sales
volumes of organic chemicals

5

Segment Results: Specialty Plastics
Vs. FY2020 1Q(billions of yen)

FY20201Q

FY2021
1Q

Change%Specialty Plastics
Home products

5.4

5.9+8%

Fiber products

1.0

1.3+38%

Packaging materials

2.9

3.0+5%

Other

1.3

1.0-23%

Segment revenue

10.6

11.2+6%

Segment operating profit

1.8

2.3+29%

Revenue

Operating Profit

Home products / Fiber products
Operating profit growth driven by higher‘NEW Krewrap’ home products and‘Seaguar’ fishing lines volumes
Packaging materials
Profit decreased due to higher raw materials
cost despite improved revenue from heatshrink multilayer film, etc.

6Segment Results: Construction(billions of yen)

FY2020
1QFY2021
1Q

Change%4.3

4.5+4%

Vs. FY2020 1Q
Construction

Construction
Construction
Elimination(Intercompany sale)

-1.7

-1.9

--Segment revenue

2.7

2.6-2%

Segment operating profit

0.2

0.1

-34%

Other Operations
Environmental
engineering
Logistics
Hospital
operations
OthersElimination(Intercompany sale)

Revenue

Operating Profit

Construction
Decreases in revenue and operating profit
led by delays in the public construction
projects, despite steady performance in theprivate projects

Other Operations
2.9

3.2+11%1.9

2.0+8%

0.9

1.0+11%

0.6

0.60%-2.1

-2.4

--

Segment revenue

4.3

4.4

+4%

Segment operating profit

0.6

0.9

+39%

Revenue

Operating Profit

Environmental engineering
Operating profit increased due to volume
growth related to low-level PCB wastes
treatment
Logistics
Revenue and profit remained at prioryear’s levels
Hospital operations
Operating loss narrowed with improved
revenue

7

Financial Position
Assets(billions of yen)

Liabilities and Equity
Mar. 312021

Jun. 30
Change2021

Mar. 312021

Jun. 30
Change2021

Cash and cash equivalents

17.8

16.8

-1.1

Trade and other payables

19.2

19.30.1

Trade and other receivables

28.2

28.1

-0.1

Interest-bearing debt

29.5

28.4

-1.1

Inventories

36.5

34.7

-1.8

Provisions

7.8

6.1

-1.7

Other current assets

3.7

3.5

-0.2

Other liabilities

14.9

13.6

-1.3

Total current assets

86.2

83.0

-3.2

Total liabilities

71.4

67.4

-4.0

Property, plant and equipment

120.2

119.7

-0.4

Shareholders’ equity

18.2

18.2

-

Intangible assets

2.2

2.9

0.7

Capital surplus

14.9

14.9

-

Investments and other assets

48.3

48.9

0.6

Less: Treasury stock-8.7-8.7-0.0

Retained earnings

154.2

156.2

2.1

Other components of equity

5.3

4.9

-0.3

Non-controlling interests

1.7

1.7

-0.0

Total non-current assets

170.7

171.6

0.9

Total equity

185.5

187.2

1.7

Total assets

256.9

254.6

-2.3

Total liabilities and equity

256.9

254.6

-2.3

8PGA & PVDF Business Updates
Revenue: PGA

Revenue: PVDF
¥billion

1.5
15

1.0
10

5.0
50

0.5
5

2.5
250000

PGA frac plugs

PGA stock shapes• The shale oil and gas market is gradually recovering
as economic activity returns with rising oil prices• Expanded the adaptation of PGA frac plugs in entire
horizontal wells (full-bore use) at major customers byoffering flexible volume price discounts since fall 2020
• Continues to promote the full-bore use and expand
Kureha’s market share in high-/mid-temperatureoilfields via flexible pricing and product design
improvements, while developing improved PGA fracplugs for very low-temperature wells• Aims to generate profit in the PGA business in FY2023¥billion

7.575

LiB binder application

Other applications• Robust PVDF sales continues on strong demand in theautomobile LiB market since 3Q FY2020, driven bynations’ environment initiatives and subsidy policies
promoting electric vehicles• Price negotiations underway to reflect rising raw materials
cost• Plans to increase the production of PVDF binder for
automobile LiB applications at the Iwaki Factory, startingfrom February 2022
• Announces the decision to build a new PVDF plant(10,000tps) in Changshu, China on July 20, 2021

9Disclaimer•

These materials are supplied to provide a deeper understanding of ourcompany, and are not intended to as a solicitation for investment or otheractions.

•These materials have been prepared by our company based on theinformation available at this point in time. However, actual performance
may produce results that differ from the plan due to unforeseeable eventsand factors.

•Please utilize these materials using you own judgment and responsibility.