Business Results for theInterim Period of the Fiscal Year Ending
December 31, 2024 (Unaudited)

August 9, 2024
KURARAY CO., LTD.

August 9, 2024
KURARAY CO., LTD.

Consolidated Earnings Report for the Interim Period of the Fiscal Year Ending
December 31, 2024
Name of listed company:
Stock code:
Stock exchange listing:
URL:

KURARAY CO., LTD.
3405
Tokyo Stock Exchange, Prime Market
https://www.kuraray.com/

Representative:
Title:
Name:

Representative Director and President
Hitoshi Kawahara

Contact:
Title:

Senior Manager, Corporate Communications Department, Corporate
Management Planning Office
Shinichi Takizawa+81-3-6701-1070

Name:
Tel:

Preparation of supplementary documentation for the earnings report: Yes
Holding of earnings results briefing: Yes (for securities analysts and institutional investors)(Millions of yen rounded down unless otherwise stated)

1. Consolidated Financial Results for the Interim Period of the Fiscal Year Ending
December 31, 2024 (January 1, 2024 to June 30, 2024)(1) Consolidated Operating Results(Percentage changes displayed for net sales, operating income, ordinary income and net income attributableto owners of the parent are comparisons with the corresponding period of the previous fiscal year.)(Millions of yen)
Net Sales

Fiscal 2024 1H
Fiscal 2023 1H

(%)
7.9
6.4

411,217
380,998

Note: Comprehensive income:Net Income per
Share (Yen)
Fiscal 2024 1H
Fiscal 2023 1H

Operating Income

91.20
65.26

45,46440,970

(%)
11.0
7.6

For the fiscal 2024 interim period:
For the fiscal 2023 interim period:

Ordinary Income

44,022
38,538

(%)
14.2
1.7

Net Income
Attributable to Ownersof the Parent(%)
39.4
30,446(9.8)
21,842¥103,896 million (41.6%)¥73,371 million (−23.2%)

Fully Diluted Net
Income per Share
(Yen)
91.14
65.21

(2) Consolidated Financial Position(Millions of yen)
As of June 30, 2024
As of December 31, 2023

Total Assets
1,327,219
1,254,485

Net Assets
819,436
736,156

Equity Ratio (%)
60.4
56.9

[Reference] Equity attributable to owners of the parent:
As of June 30, 2024:¥801,383 million
As of December 31, 2023: ¥714,285 million

2. Dividends(Yen)
Record Date
Fiscal 2023
Fiscal 2024
Fiscal 2024
(Forecast)Mar. 31――

Cash Dividends per ShareJun. 30
Sep. 30
Dec. 31
25.00
25.00
―
27.00
―

Annual
50.00

27.00

54.00

Note: Revisions to cash dividend forecast during this period: Yes

3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending December
31, 2024 (January 1, 2024 to December 31, 2024)(Percentage changes displayed for net sales, operating income, ordinary income and net income attributableto owners of the parent are comparisons with the corresponding period of the previous fiscal year.)(Millions of yen)
Net Sales

Full Fiscal Year

850,000

Operating
Income(%)
8.8 89,000

Ordinary
Income(%)
17.9 84,000

Net Income
Attributable to Ownersof the Parent
(%)
(%)
21.7
55,00029.6

Net Income
per Share(Yen)
166.42

Note: Revisions to forecasts of consolidated financial results during this period: Yes[Reference](1) Changes in Important Subsidiaries during the Period
Yes
Included two companies in consolidation: Chemviron Parentis SAS and Foggia Perlite S.r.l.
Excluded two companies from consolidation: Okayama Rinkoh Co., Ltd. and Okayama
Rinkoh Warehouse and Transport Co., Ltd.

(2) Adoption of Special Accounting Practices in the Preparation of the Interim
Consolidated Financial Statements
No(3) Changes in Accounting Principles, Procedures and Presentation Methods inConnection with the Preparation of the Interim Consolidated Financial
Statements
1. Changes following revision of accounting standards: No
2. Changes besides 1. above: No
3. Changes in accounting estimates: No
4. Restatement: No(4) Number of Shares Issued and Outstanding (Common Shares)
1.

Number of shares issued and outstanding (including treasury stock) as of the period-end:
As of June 30, 2024
354,863,603 shares
As of December 31, 2023
354,863,603 shares

2.

Number of treasury shares as of the period-end:
As of June 30, 2024
24,365,792 shares
As of December 31, 2023
20,107,257 shares

3.

Average number of shares for the period (cumulative):
As of June 30, 2024
333,850,601 shares
As of June 30, 2023
334,725,385 shares

Note: It is not required that this type of earnings report be audited.
Cautionary Statement with Respect to Forecasts of Consolidated BusinessResults(Cautionary note regarding forward-looking statements)
The results forecasts presented in this document are based upon currently available
information and assumptions deemed rational. A variety of factors could cause actual
results to differ materially from forecasts. Please refer to “1. Qualitative Information
regarding Business Results (3) Basis for the Revision in Forecasts, Including Consolidated
Operating Results Forecasts” on page 7 of the Attachment for the assumptions used.

Index of the Attachment
1. Qualitative Information regarding Business Results ...................................................

2(1) Overview of Consolidated Business Results ............................................................

2(2) Overview of Financial Position .................................................................................

6(3) Basis for the Revision in Forecasts, Including Consolidated Operating Results
Forecasts ...................................................................................................................

7(4) Basic Policies Related to Profit Distribution and Dividends in Fiscal 2024 ..............

7

2. Interim Consolidated Financial Statements and Notes ...............................................

8(1) Interim Consolidated Balance Sheets ......................................................................

8(2) Interim Consolidated Statements of Income and Interim Consolidated
Statements of Comprehensive Income ....................................................................

10(3) Interim Consolidated Statements of Cash Flows .....................................................

12(4) Notes regarding Interim Consolidated Financial Statements ...................................

13

Notes regarding Going Concern Assumptions .........................................................

13

Material Changes in Shareholders’ Equity ...............................................................

13

Segment Information, etc..........................................................................................

131

1. Qualitative Information regarding Business Results(1) Overview of Consolidated Business Results
In the fiscal 2024 interim period (January 1, 2024–June 30, 2024), the overall
world economy showed gradual growth, with the U.S. economy remaining
stable despite ongoing economic stagnation in Europe and China. However, theoutlook was unclear due in part to the risks posed to global economic activity bygeopolitical tensions attributable to conditions in the Middle East and theRussia-Ukraine situation.
Amid these circumstances, we saw our sales volume expand across manybusinesses and the yen depreciate, leading to consolidated operating results forthe fiscal 2024 interim period as follows: net sales increased ¥30,219 million(7.9%) year on year to ¥411,217 million; operating income increased ¥4,493
million (11.0%) year on year to ¥45,464 million; ordinary income increased¥5,483 million (14.2%) year on year to ¥44,022 million; and net income
attributable to owners of the parent increased ¥8,603 million (39.4%) year on
year to ¥30,446 million. All of these results—net sales and each type of profit—
set new record highs for the interim period.
(Millions of yen)
FY2023 1H

FY2024 1H

Consolidated Period

Consolidated Period

Net sales

Operating

Net sales

incomeVinyl Acetate

198,919

40,247Isoprene

31,795Functional Materials

93,371Fibers and Textiles

OperatingincomeChangeNet sales

Operatingincome208,840

43,905

9,920

3,658

(2,703)37,538(4,025)

5,743(1,321)

5,749

102,764

6,466

9,392

717

30,163665

31,233

721

1,070

56

Trading

28,9702,302

32,233

2,737

3,263

435

Others

22,864575

24,998

905

2,133

329

(25,087)(5,865)(26,390)(5,246)(1,303)619

380,998

40,970411,21745,46430,2194,493

Elimination &Corporate
Total

2

Results by Business Segment
Vinyl Acetate
Sales in this segment were ¥208,840 million (up 5.0% year on year), andsegment income was ¥43,905 million (up 9.1%).

PVOH resin: Despite disruptions in logistics to Europe, sales volume increased
due to our stable global supply system.
Optical-use poval film: The sales volume increased as the effects of theprevious year’s distribution inventory adjustments subsided. In addition, to meetdemand for larger TV panels, we began operating new equipment at theKurashiki Plant in the second quarter.
Advanced Interlayer Solutions: The sales volume decreased due to the effects
of ongoing economic stagnation on construction applications in Europe.
Water-soluble PVOH film: The sales volume increased due to progress in
distribution inventory adjustment despite the effects of protracted economic
stagnation in Europe.
EVAL™ EVOH resin: Sales for automotive applications remained firm. Although
the sales volume decreased due in part to a drop in demand for food packaging
applications that has continued from the latter half of the previous year, results
have been on a recovery track in various regions since the start of the second
quarter. We decided to construct a new plant in Singapore (announced on
March 26, 2024 and slated to begin operating by the end of 2026). This move isintended to accommodate future growth in demand, especially in circular
economy-related fields.

3Isoprene
Sales in this segment were ¥37,538 million (up 18.1% year on year), andsegment loss was ¥4,025 million (segment loss in the previous fiscal year was¥2,703 million).

Isoprene chemicals and elastomer: The sales volume increased as demand
recovered, especially for automotive applications.
GENESTAR™ heat-resistant polyamide resin: The sales volume increased
amid a recovery in demand emerged for electric and electronic device
applications in addition to stable demand for automotive applications.
Functional Materials
Sales in this segment were ¥102,764 million (up 10.1% year on year), andsegment income was ¥6,466 million (up 12.5%).

Methacrylate: The sales volume increased amid signs of a recovery in demand,
especially for electric and electronic devices. We decided to optimize theproduction capacity for methyl methacrylate (announced on June 27, 2024) anddiscovered a path to improving profit.
Medical: Sales of cosmetic dental materials, mainly in Europe and the UnitedStates, remained brisk.

4

Environmental Solutions: Sales of activated carbon remained steady, especiallyfor drinking water applications in North America. In Europe, however, economic
stagnation began to negatively affect demand related to industrial applications.
A new activated carbon facility was brought on line in the United States in thefirst quarter of the year.
Fibers and Textiles
Sales in this segment were ¥31,233 million (up 3.5% year on year), andsegment income was ¥721 million (up 8.4%).

CLARINO™ man-made leather: The sales volume increased amid a continued
recovery in demand for automotive and sports applications.
Fibers and industrial materials: Although signs of a recovery emerged indemand for automotive applications, sales in Europe for construction material
applications were weak.
Consumer goods and materials: Demand for KURAFLEX™ and MAGICTAPE™ was weak. Moreover, in the nonwoven fabrics business, we decided towithdraw from the dry-laid nonwoven fabrics business and to reduce production
capacity for meltblown nonwoven fabrics (announced on July 26, 2024).
Trading
Sales in this segment were ¥32,233 million (up 11.3% year on year), andsegment income was ¥2,737 million (up 18.9%).

5

Fiber-related businesses: The materials-related business struggled, but sales ofsportswear applications remained favorable.
Resins and chemicals: Sales expanded, especially in Asia.
OthersSales in this segment were ¥24,998 million (up 9.3% year on year), andsegment income was ¥905 million (up 57.3%).

(2) Overview of Financial Position
Total assets increased ¥72,733 million from the end of the previous fiscal year to¥1,327,219 million due to factors that include a ¥27,527 million increase ininventories, a ¥24,127 million increase in property, plant and equipment and a¥17,073 million rise in notes and accounts receivable–trade, and contract assets
despite a ¥6,970 million decrease in cash and cash deposits. Total liabilities
decreased ¥10,546 million to ¥507,782 million due to factors that include a¥26,076 million decrease in interest-bearing debt despite a ¥9,272 million
increase in notes and accounts payable–trade.
Net assets rose ¥83,280 million to ¥819,436 million due in part to an increase inforeign currency translation adjustment and retained earnings. Equity attributableto owners of the parent amounted to ¥801,383 million, for an equity ratio of 60.4%.

6

(3) Basis for the Revision in Forecasts, Including Consolidated Operating
Results Forecasts
From the third quarter onward, we expect the global economy to continue toenjoy gradual recovery as financial policies are revised, especially in Europe
and the United States, amid easing inflation despite ongoing uncertainty due togeopolitical risks in various regions and economic stagnation in China. Basedon the interim business results, current business trends, and theaforementioned economic environment, we revised the full-year forecast for
fiscal 2024 (January 1, 2024 to December 31, 2024), which was announced on
May 14, 2024.
The revised consolidated operating results forecast for the fiscal year ending
December 31, 2024 (January 1, 2024 to December 31, 2024) is as follows.
(Millions of yen)
Net Income
Net Operating Ordinary
Attributable toSales Income Income
Owners of the Parent
Original Forecast (A)840,000
85,00079,00049,000
Revised Forecast (B)
850,000
89,00084,00055,000
Amount Adjusted (B − A) 10,000
4,000
5,000
6,000
Percent Adjusted
1.2%
4.7%
6.3%
12.2%
(Ref.)
780,938
75,47569,02542,446FY2023 Results(Yen)

Net Income
Per Share
146.35166.42126.80Note: The above forecasts are based on the best information currently
available. Actual operating results may vary significantly due to various
factors.
(4) Basic Policies Related to Profit Distribution and Dividends in Fiscal 2024
Under the current Medium-Term Management Plan, “PASSION 2026,” we haveestablished a shareholder return policy of achieving a total return ratio of 35%
or more and an annual dividend per share of ¥40 or more. We are working toenhance shareholder returns by expanding earnings. To improve capitalefficiency, we are promoting various measures, including building a moresophisticated business portfolio.
As for the annual dividend for fiscal 2024, based on the aforementioned
shareholder return policy and current performance trends, we decided toincrease the interim and year-end dividend forecast ¥2 each to ¥27 per share.
As a result, the annual dividend per share forecast is now ¥54, an expected
increase of ¥4 compared to the previous forecast and the previous fiscal year’s
dividend.
Based on a resolution of the Board of Directors on May 14, 2024, we conduct ashare buyback with a maximum of 15,000,000 shares and ¥20,000 million, andwe expect a total return ratio of around 68% in fiscal 2024.

7

2. Interim Consolidated Financial Statements and Notes(1) Interim Consolidated Balance Sheets

ASSETS
Current Assets
Cash and deposits
Notes and accounts receivable–trade, andcontract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current Assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant, and equipment
Intangible assets
Goodwill
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total Assets

8(Millions of yen)

December 31, 2023

June 30, 2024

131,144

124,173

161,904

178,978

3,478
146,924
17,50263,601
28,040(869)
551,727

2,034
168,246
18,402
68,906
26,813(1,010)586,544

110,214
270,408
22,61880,344
43,390526,977

122,315
306,694
19,68255,32947,082551,104

55,38629,14935,965120,501

57,174
31,18738,321
126,683

23,966140
3,227
16,53011,509(95)
55,278702,757
1,254,485

28,796140
3,358
17,22813,456(94)
62,885
740,674
1,327,219

December 31, 2023
LIABILITIESCurrent Liabilities
Notes and accounts payable–trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Accrued bonuses
Other
Total current liabilities
Non-current Liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total Liabilities
NET ASSETS
Shareholders’ Equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated Other Comprehensive Income
Valuation difference on available-for-salesecurities
Deferred gain or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare Acquisition Rights
Non-controlling Interests
Total Net Assets
Total Liabilities and Net Assets

9(Millions of yen)
June 30, 2024

49,12440,014－
24,69816,734
11,033
10,275
48,690200,571

58,39633,89010,00017,731
18,941
15,8807,936
43,867
206,643

60,000157,31218,75429,487
6,338
45,864
317,757
518,329

50,000144,326
19,371
31,5997,133
48,707301,139
507,782

88,95587,146426,290(25,654)576,737

88,95587,179448,367(33,632)
590,870

6,856

7,857

(53)
131,269(524)(12)
203,017(349)

137,548

210,512341
21,529736,156
1,254,485

270
17,782
819,436
1,327,219

(2) Interim Consolidated Statements of Income and Interim Consolidated Statements ofComprehensive Income
Interim Consolidated Statements of Income(Millions of yen)
Fiscal 2023 1H
Fiscal 2024 1H(January 1, 2023 – (January 1, 2024 –June 30, 2023)
June 30, 2024)
Net sales
380,998
411,217
Cost of sales
261,167
277,798
Gross profit
119,830
133,419
Selling, general and administrative expenses
Selling expenses
20,742
22,670General and administrative expenses
58,11765,284
Total selling, general and administrative
78,86087,955expenses
Operating income
40,97045,464Non-operating income
Interest income
644
1,828
Dividend income
360
352
Share of profit of entities accounted for using
96
155
equity method
Other
703
1,487
Total non-operating income
1,805
3,823
Non-operating expenses
Interest expenses
1,380
1,415
Other
2,857
3,850
Total non-operating expenses
4,237
5,265
Ordinary income
38,53844,022Extraordinary income
1,515
Gain on sale of investment securities
676
Total extraordinary income
676
1,515
Extraordinary losses
Loss on liquidation of business－
3,477
Loss on abandonment of non-current assets
351
579
Loss on litigation
7,520－
Total extraordinary losses
7,872
4,057
Income before income taxes and noncontrolling
31,342
41,480interests
Income taxes—current
10,09912,774
Income taxes—deferred(798)(1,807)
Total income taxes
9,301
10,966
Net income
22,041
30,514
198
67
Net income attributable to noncontrolling interests
21,84230,446
Net income attributable to owners of the parent

10

Interim Consolidated Statements of Comprehensive Income(Millions of yen)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Noncontrolling interests

11

Fiscal 2023 1H
Fiscal 2024 1H(January 1, 2023 – (January 1, 2024 –June 30, 2023)
June 30, 2024)
22,041
30,514
652

1,000

(351)
50,671

31
71,796

194

174

163

380

51,33073,371

73,382
103,896

72,487884

103,410486

(3) Interim Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2023 1H
Fiscal 2024 1H(January 1, 2023 – (January 1, 2024 –June 30, 2023)
June 30, 2024)
Net cash provided by (used in) operating
Income before income taxes andactivities
noncontrolling interests
Depreciation and amortization
Loss (gain) on sale of investment securities
Loss on liquidation of business
Loss on disposal of tangible fixed assets
Loss on litigation
Decrease (increase) in notes and accounts
receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable – trade
Other, net
Subtotal
Income taxes (paid) refund
Other, net
Net cash provided by (used in) operating
Netactivities
cash provided by (used in) investing
Purchase of tangible fixed assets andactivities
intangible fixed assets
Proceeds from sale and redemption of
investment securities
Other, net
Net cash provided by (used in) investing
Netactivities
cash provided by (used in) financing
activities
Net increase (decrease) in short-term loansNet(decrease) increase in commercial paper
payableRepayment of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing
Effectof Exchange Rate Changes on Cash andactivities
Cash Equivalents
Net Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents, Beginning of the Period

Decrease in cash and cash equivalents fromexclusion of subsidiaries from consolidation
Cash and Cash Equivalents, End of the Period
1231,342

41,48036,731
(676)
－
351
7,520

41,824(1,515)
3,477
579
－

2,269

(5,448)(1,947)(9,382)(12,498)

6,422

6,600
69,693(11,043)(1,033)57,616(11,856)
65,581(2,976)
1,098
63,703(30,151)(33,507)

1,254

2,104

(1,287)(30,184)(4,441)(35,845)

1,894(10,000)(22,938)(10,000)(1)(7,697)(1,750)(50,494)(6,231)－(21,603)－(8,148)(8,368)(1,975)(46,327)

5,790

11,615(17,271)(6,854)

127,616

133,663－(601)

110,345

126,207(4) Notes regarding the Interim Consolidated Financial Statements
Notes regarding Going Concern Assumptions
None
Material Changes in Shareholders’ Equity
At the Board of Directors meeting held on May 14, 2024, the Company resolved to conduct
a share buyback, setting a maximum of 15 million shares and ¥20,000 million. Due in partto this buyback, treasury stock increased ¥7,977 million during the interim period, andtreasury stock stood at ¥33,632 million as of June 30, 2024.

Segment Information, etc.
● Segment Information
I. Fiscal 2023 Interim Period (January 1, 2023 to June 30, 2023)
1. Net sales, income and loss by reporting segment(Millions of yen)
Reporting Segment
Vinyl Isoprene Functional
AcetateMaterials

Net sales
Outside190,694
customers
Intersegment
sales and
8,225
transfers
Total
198,919
Segment income
40,247(loss)

FibersandTextiles

Other
Business1
Trading

Total

Adjustment2 Consolidated
Statements
3of IncomeTotal

25,54591,422

28,326 28,190 364,179

16,819 380,998—

380,998

6,249

1,948

1,836

780 19,041

6,045 25,087(25,087)—

31,79593,37130,163 28,970 383,220

22,864 406,085(25,087)

380,998(2,703)

5,749

575 46,836(5,865)40,970665

2,302 46,260

Notes:
1. The “Other Business” category incorporates operations not included in businesssegment reporting, including engineering business.
2. Adjustment is as follows: Included within segment loss of ¥5,865 million is theelimination of intersegment transactions of ¥2,002 million and corporate expenses of¥7,868 million. Corporate expenses mainly comprise the submitting company’s basic
research expenses.
3. Segment income or loss is adjusted to agree with operating income in the
consolidated statements of income.

13

II. Fiscal 2024 Interim Period (January 1, 2024 to June 30, 2024)
1. Net sales, income and loss by reporting segment(Millions of yen)
Reporting Segment
Vinyl Isoprene Functional
AcetateMaterials

Net sales
Outside200,429
customers
Intersegment
sales and
8,410
transfers
Total
208,840
Segment income 43,905(loss)

28,953

100,310

8,584

2,453

37,538102,764(4,025)

6,466

FibersandTextiles

Other
Business1
Trading

Total

Adjustment2 Consolidated
Statements
3of Income

Total

28,900 31,673 390,267

20,950 411,217—

411,2172,332

560 22,342

4,047 26,390(26,390)—

31,233 32,233 412,610

24,998 437,608(26,390)

411,217905 50,710(5,246)45,464721

2,737 49,805

Notes:
1. The “Other Business” category incorporates operations not included in businesssegment reporting, including engineering business.
2. Adjustment is as follows: Included within segment loss of ¥5,246 million is theelimination of intersegment transactions of ¥2,975 million and corporate expenses of¥8,222 million. Corporate expenses mainly comprise the submitting company’s
basic research expenses.
3. Segment income or loss is adjusted to agree with operating income in the
consolidated statements of income.
2. Information about impairment loss of fixed assets or goodwill, etc by reporting segment
Material Losses Related to Non-current Assets
In the Functional Materials segment, impairment loss totaled ¥3,249 million. In the interim
period, this loss was included in loss on liquidation of business under extraordinary losses.

14