June 21, 2024

Management Briefing
KURARAY CO., LTD.
© Copyright 2024 KURARAY CO., LTD.

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Today’s Theme

Hitoshi KawaharaPresident and Representative Director

Growth Opportunity of ActivatedCarbon Business

Nobuhiko Takai
Director and Managing Executive Officer
President, Functional Materials Company

Stevan R. Schott
Executive Officer
General Manager of Environmental Solutions
Division
Calgon Carbon Corporation President

Jenalle Brewer
Senior Vice President – U.S. Drinking Water &Global Business Development
Calgon Carbon Corporation© Copyright 2024 KURARAY CO., LTD.

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Growth Opportunity of Activated Carbon Business© Copyright 2024 KURARAY CO., LTD.

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What is Activated Carbon?

© Copyright 2024 KURARAY CO., LTD.

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What is Activated Carbon (AC)?
••© Copyright 2024 KURARAY CO., LTD.

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Wide Range of Products for Six Key Global Markets
Key Global Markets & 2023 Activated Carbon & Related Sales Volume %Specialty
Drinking Water~ 35%

Wastewater~ 20%

Food & Beverage~ 15%

Air Treatment~15%

Industrial Process~10%(Battery-related, Gas
Masks, Wound Care, etc.)~ 5%

Wide range of products

Bituminous coal-based
activated carbon

Carbon cloth(viscous rayon)

Coconut-basedactivated carbon

Wet moldedcarbon blockWood-based
activated carbon

Granular activatedcarbon reactivation

Carbon adsorption
equipment© Copyright 2024 KURARAY CO., LTD.

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How Our Products Help Customers and Society

Provide clean, safe
drinking water

Improve the environment
through remediation projects

Reduce environmental
impact and allow wastewaterreuse or disposal

Remove and recovercontaminants from airemissions

Enhance critical stages inchemical manufacturing

Purify food products

Enabling electrification andreducing emissions forautomotive industry

Protect your personalenvironment© Copyright 2024 KURARAY CO., LTD.

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Overview of new U.S. PFAS drinking
water regulation© Copyright 2024 KURARAY CO., LTD.

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What is PFAS and PFAS effects
What is PFAS
• Poly- and perfluoroalkyl substances – PFAS
• Characterized by carbon bonded with multiple fluorine atoms• Class of synthetic fluorinated compounds originating in the ‘40s
• Commonly referred to as “forever chemicals”
PFOS Molecule

PFAS effects• Highly persistent / resistant to degradation in the environment• Ubiquitous in most water supplies• Accumulates in the body

PFOA Molecule• Toxicological studies demonstrate adverse health effects throughexposure at very low concentrations© Copyright 2024 KURARAY CO., LTD.

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CleaningSupplies

Firefighting
Foams

Nonstick
Cookware

Eye Makeup

Nail PolishInsect Spray

Fast Food
Wrappers

Shampoo

Microwave
Popcorn
Bags
Stain
Resistance
Products

Pizza
Boxes

Dental Floss

Waterproof
Clothing

CandyWrappers© Copyright 2024 KURARAY CO., LTD.

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New PFAS regulation for drinking water in U.S.
PFOA

PFOS

PFNA

PFHxS

MCL*

4 ppt

10 pptGoal0 ppt

10 pptGenXTiming

3 years monitoring + 2 years for treatment = April 2029 Compliance
Expect early adoption due to state regulation, public pressure, etc.

ImpactU.S. EPA estimates the regulation will ensure 100 million Americans haveaccess to clean and safe drinking water. The U.S. Bipartisan Infrastructure
Law has allotted ~$10 Billion in grant funding over 5 years to tackle emerging
contaminants such as PFAS.

* MCL: Maximum Contaminant Level; ppt: part-per-trillion© Copyright 2024 KURARAY CO., LTD.

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Expected Demand Growth© Copyright 2024 KURARAY CO., LTD.

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Drinking Water Basics
Both Ground Water and Surface Water customers will require PFAS treatment, but design considerations will be different.
Typical Surface Water Treatment Process

IntakeTo
Distribution

Primary
Disinfection

Coagulation

Flocculation

Sedimentation

GAC

Finished water storage

Typical Groundwater Treatment with our AquaknightTM Vessels

IntakeTo
Distribution

Primary
Disinfection

Finished water storage© Copyright 2024 KURARAY CO., LTD.

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Best Available Technologies for PFAS Treatment per US EPA & Advantages of GAC

Granular ActivatedCarbon (GAC)

Ion Exchange
Resin (IX)

Reverse Osmosis(RO)Operating Costs

Capital Costs

EffectivenessEnd of LifeLow product cost,
multi-contaminantremoval, no energy
consumption

Equipment andinfrastructure
investment, larger
footprint vs. IX

Effective for long &short chain, design
and treatment goals
must be considered

Reactivation is asustainable & costeffective option for
PFAS destruction

Higher productcost, foulingconcerns, limited
simultaneous
removalEquipment andinfrastructure
investment, smaller
footprint vs. GAC

Effective for long &short chain, design
and treatment goals
must be consideredMust landfill orincinerate spentmedia, which iscostlyHigh energy cost,high maintenanceand membrane
replacement cost

Higher overall
project costs vs.
GAC & IX

Effective for long &short chain, design
and treatment goals
must be considered

Reject waterdisposal requires
incineration or deep
well injection, whichis costly© Copyright 2024 KURARAY CO., LTD.

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Kuraray Strengths / Advantages as the Total Solution Provider
FiltrasorbTM
Virgin GAC

AquaKnightEquipment

Drinking Water
Reactivation

Expertise /Service• High performanceof FiltrasorbTM
Products• Product durability
maximizes
reactivation cycles• Surety of supply isimportant tomarket• New production
line helps ensure
supply• Engineered forbest performance• Can purchaseequipment &GAC in bundle• Industry* certifiedequipment• Performanceequivalent or better
to virgin• Large,experienced field
service teamdelivering touchfree service• Over 25 years ofexperience inPFAS treatment• Optimize
customersolutions throughpilot andlaboratory testing• Proven effective forremoval anddestruction of PFAS
compounds• Offeredin combination;collect spent carbon,reactivateand fill up equipment.

*Certified per National Sanitation Foundation (NSF) as required by industry© Copyright 2024 KURARAY CO., LTD.

15Current Public Drinking Water in U.S.
• The volume of drinking water treated with GAC is expected to increase by 2.5X – 4X to comply with regulations.
• In addition to more utilities using GAC, change out frequency is expected to increase by 2X – 4X.

US PFAS Occurrence Map

Market Use of GAC in FY2023
US Drinking
Water Treatedwith GAC~10%
US Drinking Water NOT
Treated with GAC ~90%

Our Estimate of GAC Use in FY2030••••

US Drinking
Water NOT
Treated withGAC ~60%•© Copyright 2024 KURARAY CO., LTD.

US Drinking
Water Treatedwith GAC+15%(Total 25%)
US Drinking
Water Treatedwith GAC+30%(Total 40%)

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Expected Demand Growth for Drinking Water in U.S.
• Our annual estimate of the market value for PFAS treatment for U.S. drinking water isbetween $1.0B to $2.0B in 2030, depending on % of water requiring treatment.
• We believe activated carbon will represent 75% of the market and our strength as a
Total Solution Provider positions us to capture more than half of the demand.
Calgon Carbon U.S. Drinking Water PFAS-Only Revenue Growth (2023 as 100%):1400%
1200%1000%
800%
600%
400%
200%
0%
2023

2024

2025

2026

2027

PFAS - 15% Treated (Low End of Range)

2028

2029

2030

2031

2032

PFAS - 30% Treated (High End of Range)© Copyright 2024 KURARAY CO., LTD.

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Beverage & Bottling• PFAS in bottlers andbeverage producers
Agriculture• Irrigation waterIndustrial Plant• Air emissions• Industrial wastewater• PFAS treated materials

Wastewater Treatment••••

Wastewater
Direct discharge to stream
Leachate
Municipal wastewater
Firefighting Foam

People/Housing• Discharge to streamand groundwater• Home water filters forPFAS

Landfill• Treatment ofleachate for PFAS

Remediation• Treatment of contaminatedwaterways and soils© Copyright 2024 KURARAY CO., LTD.

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Other Growth Opportunities

Significant additional growth as a solution provider,with CAGR of 10%+ until 2030.
Other US PFAS
treatment*1

PFAS regulationin other regions

US Stage III
DBP*2

Growth in Other
Global Markets

Additional growthfor other markets industrial,remediation, foodand beverage.

Stricter regulations
in Europe and theestablishment oflimits in Asia areexpected.

Additional growth
will occur for USdrinking water withthe establishmentof new regulations.

Examples Include:• Battery materials• Biogas purification• Stricter regulations
for air

M&As:
Bloomfield in 2023 and Sprint in 2024
(Equipment)(Industrial reactivation)

Capacity expansion:
New 25,000 MT virgin GAC line in U.S. started
operation in Q1 2024.

*1 See slide 18 for detail.
*2 DBP: Disinfection Byproduct. New, anticipated regulation broadening regulated byproducts & limiting chloramine byproducts in drinking water in U.S.
© Copyright 2024 KURARAY CO., LTD.

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ESD’s Strong Growth Forecast from PFAS & Other Markets
Environmental SolutionDivision’s Total Global Revenue Growth:
:CAGR

250%

Others Growth

35% - 40%

US Other Drinking Water,incl. DBP III

10% - 15%PFAS - US Industrial &Other Regions

20% - 25%

US PFAS Drinking Water

30% - 40%

200%

150%

100%

50%

Base Business
0%2023

2030 2030 2030
(10%(13%CAGR
CAGR)
10% CAGR)
CAGR 13%Total

3% - 5%
10% - 13%Growth from PFAS treatment for US Drinking Water will be strong andadditional growth expected from other market & applications© Copyright 2024 KURARAY CO., LTD.

20This presentation contains various forward-looking statements which are based on the current expectations and assumptions of future events. All figures and statementswith respect to the future performance, projections, and business plans of Kuraray and its group companies constitute forward-looking statements. Although Kuraraybelieves that its expectations and assumptions are reasonable, actual results and trends of Kuraray’s performance could differ materially from those expressed orimplied by such figures or statements due to risks and uncertainties in the future business circumstances. The factors which may cause such difference include, without
limitation: (1) general market and economic conditions in Asia including Japan, the U.S., Europe and other regions; (2) fluctuations of currency exchange rates,
especially between the Japanese yen and the U.S. dollar and other foreign currencies; (3) changes in raw material and fuel costs; (4) industrial competition and pricefluctuations in Japan and international markets; (5) advance or delay in the construction of new plants and production lines; (6) successful development of new products
and technologies; and (7) changes in laws and regulations (including tax and environmental) and legal proceedings.