May 14, 2020
Kuraray Co., Ltd.

Notice of Revision to Earnings Forecasts
Kuraray Co., Ltd. has made the following revisions to the forecast of financial results, which
was announced on February 13, 2020.
1. Revisions to consolidated earnings forecast for the second quarter of fiscal 2020 (January 1 June 30, 2020)

Previously
Announced
forecast (A)Revised forecast (B)Change (B − A)
Percent change (%)(Reference)
Secondquarter
results of fiscal 2019

Billions of yen

Net Income
Attributableto Owners ofthe Parent
Billions of yen

Net
IncomeperShareYen

28.0
15.0(13.0)(46.4)

26.0
13.0(13.0)(50.0)

16.0
7.0
(9.0)
(56.3)

46.55
20.36

27.9

24.7

13.3

38.16

Net Sales

Operating
IncomeOrdinary
IncomeBillions of yen

Billions of yen

290.0
260.0
(30.0)(10.3)
287.4

2. Reason for the revisions
Due to global economic restrictions to combat the spread of COVID-19, first quarter
results were weak as demand for Kuraray mainstay products for use in automobiles,
electronic devices and displays stagnated. Further deterioration in demand is unavoidablefrom the second quarter, and we need to respond accordingly with production adjustments
and other measures. We expect this to have a large impact on our operating results. Basedon these circumstances, we have revised our consolidated forecast for the second quarter offiscal 2020 as shown below.

Note: Earnings forecasts are based on currently available information and certain conditions
judged rational, but actual earnings may differ from forecasts for various reasons.

Reference：Earnings forecast by reporting segment（Billions of yen）

Net Sales
Original

RevisedPlanforecast

Operating Income
Difference

Original

RevisedPlan

forecast

Difference

Vinyl Acetate138.0

123.0(15.0)

24.5

15.5(9.0)

Isoprene

27.0

24.0(3.0)

2.0

2.00

Functional Materials

64.0

60.0(4.0)

2.00(2.0)

Fibers and Textiles

33.0

28.0

(5.0)

3.0

1.5(1.5)

Trading

65.0

60.0

(5.0)

2.2

1.8(0.4)

Other Business

25.0

19.5

(5.5)

0.3

(0.2)

(0.5)

Adjustment(62.0)(54.5)

7.5

(6.0)

(5.6)

0.4

Total

290.0

260.0

(30.0)

28.0

15.0(13.0)

3. Revisions to consolidated earnings forecast for the fiscal 2020 (January 1 - December 31,2020)

Previously
Announcedforecast (A)Revised forecast (B)Change (B − A)
Percent change (%)(Reference)
Results of fiscal
2019

Billions of yen

Net Income
Attributableto Owners ofthe Parent
Billions of yen

Net
Incomeper
Share
Yen

60.0-

56.0
-

35.0-

101.82
-

54.2

48.3

(2.0)

(5.66)Net Sales

Operating
IncomeOrdinary
IncomeBillions of yen

Billions of yen

590.0
575.8

4. Reason for the revisions
The economic environment was dramatically changed from that which we calculated in
the original forecast owing to restrictions on economic activity world-wide to counter theglobal spread of COVID-19. Due to the difficulty of reasonably calculating results forecasts
for the third and fourth quarter, we have withdrawn the full-year consolidated results
forecast released on February 13, 2020 and it is to be determined. We will swiftly release aforecast once calculations become possible.
In addition, although we recorded an extraordinary loss in fiscal 2019 related to thelitigation over the fire at the U.S. subsidiary, in May 2018, if it is determined that we needto revise our results forecasts in the course of future negotiations, we will make a swift
announcement.