Business Results for theFirst Quarter of the Fiscal Year Ending
December 31, 2024 (Unaudited)

May 14, 2024
KURARAY CO., LTD.

May 14, 2024
KURARAY CO., LTD.

Consolidated Earnings Report for the First Quarter 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 quarterly earnings report: Yes
Holding of quarterly earnings results briefing: Yes (for securities analysts and institutional investors)(Millions of yen rounded down unless otherwise stated)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending
December 31, 2024 (January 1, 2024 to March 31, 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 1Q
Fiscal 2023 1Q

192,183
184,965

Operating Income

(%)
3.9%
10.4％

28,793
21,324(%)
35.0%(3.7%)

Ordinary Income

27,861
20,389(%)
36.6%(8.5%)Net Income
Attributable to Ownersof the Parent(%)
165.1%
21,614(35.8%)
8,152

Note: Comprehensive income: For the fiscal 2024 first quarter: ¥57,033 million (254.4%)
For the fiscal 2023 first quarter: ¥16,094 million (−59.7%)
Net Income per
Share (Yen)
Fiscal 2024 1Q
Fiscal 2023 1Q

64.56
24.36

Fully Diluted Net
Income per Share
(Yen)
64.52
24.34

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

Total Assets
1,293,039
1,254,485

Net Assets
780,587
736,156

Equity Ratio (%)
59.0
56.9

[Reference] Equity attributable to owners of the parent:
As of March 31, 2024:¥762,483 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
―

25.00

―

Annual
50.00

25.00

50.00

Note: Revisions to cash dividend forecast during this period: No

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 SalesInterim Period
Full Fiscal Year

410,000
840,000

Operating
Income(%)
7.6 42,000
7.6 85,000

Ordinary
Income(%)
2.5 39,000
12.6 79,000

Net Income
Attributable to Ownersof the Parent
(%)
(%)
1.2
25,00014.5
14.5
49,00015.4

Net Income
per Share
(Yen)
74.67
146.35

Note: Revisions to forecasts of consolidated financial results during this period: Yes[Reference](1) Changes in Important Subsidiaries during the Period (Changes in Special
Subsidiaries Involving Changes in the Scope of Consolidation)
No(2) Adoption of Special Accounting Practices in the Preparation of Quarterly
Consolidated Financial Statements
No(3) Changes in Accounting Principles, Procedures and Presentation Methods inConnection with the Preparation of Quarterly 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 March 31, 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 March 31, 2024
20,056,346 shares
As of December 31, 2023
20,107,257 shares

3.

Average number of shares for the period (cumulative):
As of March 31, 2024
334,773,181 shares
As of March 31, 2023
334,692,204 shares

Note: It is not required that this type of earnings report be audited.

Cautionary Statement with Respect to Forecasts of Consolidated BusinessResults(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 ..............

8

2. Quarterly Consolidated Financial Statements and Notes ...........................................

9(1) Quarterly Consolidated Balance Sheets ...................................................................

9(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated
Statements of Comprehensive Income ....................................................................

11(3) Notes regarding Quarterly 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 first quarter of fiscal 2024 (January 1, 2024–March 31, 2024), the world
economy overall grew only moderately, with the European and Chinese
economies stagnating, despite the U.S. economy remaining firm backed bysolid personal consumption. In addition, further escalation of geopoliticaltensions, such as the prolonged conflict in Ukraine and the intensifying crisis in
the Middle East, have become a risk factor for global economic activities, andthe outlook remained uncertain.
Amid these circumstances, consolidated operating results for the first quarter offiscal 2024 are as follows: net sales increased ¥7,217 million (3.9%) year on
year to ¥192,183 million; operating income increased ¥7,468 million (35.0%)
year on year to ¥28,793 million; ordinary income increased ¥7,471 million(36.6%) year on year to ¥27,861 million; and net income attributable to ownersof the parent increased ¥13,461 million (165.1%) year on year to ¥21,614
million.
(Millions of yen)
FY2023 1Q

FY2024 1Q

Consolidated Period

Consolidated Period

Net sales

Operating

Net sales

incomeOperatingincomeChangeNet sales

OperatingincomeVinyl Acetate

97,815

17,82099,041

24,788

1,226

6,968

Isoprene

15,780190

17,155

21

1,374

(168)

Functional Materials

45,3783,495

48,733

3,242

3,355

(252)

Fibers and Textiles

13,533248

13,829

(243)

296

(491)

Trading

13,8101,142

15,317

1,336

1,507

194

Others

11,34763

11,734

428

386

365

(12,700)(1,635)(13,629)

(781)

(929)

854

184,965

21,324

192,183

28,793

7,217

7,468

Elimination &Corporate
Total

2

Results by Business Segment
Vinyl Acetate
Sales in this segment were ¥99,041 million (up 1.3% year on year), andsegment income was ¥24,788 million (up 39.1%).

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 inventory adjustments disappeared.
Advanced Interlayer Solutions: The sales volume decreased due to theeffects of economic stagnation on construction applications in Europe.
Water-soluble PVOH film: The sales volume decreased due to the effects ofprotracted economic stagnation in Europe.
EVAL™ EVOH resin : Although sales for automotive applications remained
firm, the sales volume decreased due in part to a drop in demand for foodpackaging applications that has continued from the latter half of theprevious year. We decided to construct a new plant in Singapore(announced on March 26, 2024 and slated to begin operating by the end of2026). This move is intended to accommodate future growth in demand,
especially in circular economy-related fields.

3Isoprene
Sales in this segment were ¥17,155 million (up 8.7% year on year), andsegment income was ¥21 million (down 88.6%).

Isoprene chemicals and elastomer: The sales volume increased as demand
recovered, especially for automotive applications.
GENESTAR™ heat-resistant polyamide resin: Signs of a recovery indemand emerged for electric and electronic device applications in addition
to stable demand for automotive applications.

Functional Materials
Sales in this segment were ¥48,733 million (up 7.4% year on year), andsegment income was ¥3,242 million (down 7.2%).

Methacrylate: The sales volume increased amid signs of a recovery indemand, especially for electric and electronic devices.
Medical: Sales of cosmetic dental materials, mainly in Europe and theUnited States, remained brisk.
Environmental Solutions: Sales of activated carbon remained steady,especially for drinking water applications in North America. A new activatedcarbon facility came on line in the United States in the first quarter underreview.
4

Fibers and Textiles
Sales in this segment were ¥13,829 million (up 2.2% year on year), andsegment loss was ¥243 million (compared with segment income of ¥248 million
in the same period of the previous fiscal year).

CLARINO™ man-made leather: The sales volume increased amid acontinued 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.

Trading
Sales in this segment were ¥15,317 million (up 10.9% year on year), andsegment income was ¥1,336 million (up 17.0%).

Fiber-related businesses: The materials-related business struggled, but salesof sportswear applications remained favorable.
Resins and chemicals: Sales expanded, especially in Asia.

5Others
Sales in this segment were ¥11,734 million (up 3.4% year on year), andsegment income was ¥428 million (up 574.5%).

(2) Overview of Financial Position
Total assets increased ¥38,554 million from the end of the previous fiscal year to¥1,293,039 million due to factors that include a ¥29,501 million increase ininventories, a ¥6,188 million increase in property, plant and equipment and a¥5,289 million rise in investment securities despite a ¥7,825 million decrease in
cash and cash deposits. Total liabilities decreased ¥5,876 million to ¥512,452
million due to factors that include a ¥15,180 million decrease in interest-bearing
debt despite a ¥3,843 million increase in accounts payable-trade.
Net assets rose ¥44,430 million to ¥780,587 million due in part to an increase inforeign currency translation adjustment and retained earnings. Equity attributableto owners of the parent amounted to ¥762,483 million, for an equity ratio of 59.0%.

6

(3) Basis for the Revision in Forecasts, Including Consolidated Operating
Results Forecasts
Regarding the cumulative consolidated operating results forecast for the second
quarter of the fiscal year ending December 31, 2024, we revised the forecast
figures as follows, based on the performance trends during the first quarter andinto the present. Accordingly, by combining this with the second-half forecast(announced on February 8, 2024), we also revised the full-year forecast.
The revised cumulative consolidated operating results forecast for the second
quarter of the fiscal year ending December 31, 2024 (January 1, 2024 to June30, 2024) is as follows.
(Millions of yen)
Net Income
Net Operating Ordinary
Attributable toSales Income Income
Owners of the Parent
Original Forecast (A)400,000
40,00037,00023,000
Revised Forecast (B)410,000
42,00039,00025,000
Amount Adjusted (B − A) 10,000
2,000
2,000
2,000
Percent Adjusted
2.5%
5.0%
5.4%
8.7%
(Ref.)
380,998
40,97038,53821,842
FY2023 2Q Results(Yen)

Net Income
Per Share
68.71
74.67

65.26

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)830,000
83,00077,00047,000
Revised Forecast (B)840,000
85,00079,00049,000
Amount Adjusted (B − A) 10,000
2,000
2,000
2,000
Percent Adjusted
1.2%
2.4%
2.6%
4.3%
(Ref.)
780,938
75,47569,02542,446FY2023 Results(Yen)

Net Income
Per Share

Note: The above forecasts are based on the best information currently
available. Actual operating results may vary significantly due to various
factors.

7140.40146.35126.80(4) Basic Policies Related to Profit Distribution and Dividends in Fiscal
2024
Under current Medium-Term Management Plan, “PASSION 2026”, we haveestablished shareholder return policy that is, a total return ratio of 35% or more
and an annual dividend per share of ¥40 or more. We are working to enhanceshareholder returns by expanding earnings. To improve capital efficiency, weare promoting various measures, including building a more sophisticatedbusiness portfolio.
As for the annual dividend for fiscal 2024, we plan to pay ¥50 per share. In
addition, as in the "Notice of Decision to Launch a Share Buyback" dated May
14, 2024, we have decided to conduct a share buyback in order to strengthenshareholder returns further and improve capital efficiency. The details of theshare buyback are as follows.
Details of the Share Buyback(1) Type of shares in buyback:(2) Maximum number of shares:(3) Maximum value of buyback:(4) Buyback method:(5) Buyback period:

Common stock
Up to 15.0 million shares(Approximately 4.48% of total outstanding
shares, excluding treasury stock)
Up to ¥20.0 billion
Market purchase based on a tradecontract for acquiring treasury stock
May 15, 2024 to October 31, 2024

In addition to treasury stock to be acquired this time, the Company plans tocancel treasury stock currently owned. Number of shares to be canceled andcancellation timing will be announced as soon as they are decided.

8

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly 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

9(Millions of yen)

December 31, 2023

March 31, 2024

131,144

123,318

161,904

164,799

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

2,442
171,083
20,263
66,182
24,658(948)
571,799

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

115,315
294,956
19,19858,90844,786533,165

55,38629,14935,965120,501

57,74630,204
37,219125,170

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

29,256143
3,289
18,025
12,284(94)
62,904
721,240
1,293,039

December 31, 2023
LIABILITIESCurrent Liabilities
Notes and accounts payable–trade
Short-term borrowings
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

10(Millions of yen)March 31, 2024

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

52,96837,974
17,424
18,543
12,396
11,26047,780198,348

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

60,000151,445
19,06030,384
6,586
46,626314,103
512,452

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

88,95587,151
439,535(25,590)590,052

6,856

8,352

(53)
131,269
(524)

(100)
164,662(483)

137,548

172,430

341
21,529736,156
1,254,485

270
17,833
780,587
1,293,039

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated
Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)
Fiscal 2023 1Q
Fiscal 2024 1Q(January 1, 2023 – (January 1, 2024 –March 31, 2023)
March 31, 2024)
Net sales
184,965
192,183
Cost of sales
124,992
120,216Gross profit
59,97371,967
Selling, general and administrative expenses
Selling expenses
10,450
11,207
General and administrative expenses
28,19731,965
Total selling, general and administrative
38,64843,173
expenses
Operating income
21,324
28,793Non-operating income
Interest income
265
1,175
Dividend income
59
97
Share of profit of entities accounted for using
47
95
equity method
Other
381
796
Total non-operating income
753
2,165
Non-operating expenses
Interest expenses
577
716
Other
1,111
2,381
Total non-operating expenses
1,688
3,097
Ordinary income
20,38927,861
Extraordinary losses
Loss on abandonment of non-current assets
102
251
Loss on litigation
7,151―
Total extraordinary losses
7,253
251
Income before income taxes
13,13527,609
Income taxes—current
5,436
7,606
Income taxes—deferred(711)(2,117)
Total income taxes
4,724
5,489
Net income
8,410
22,120257
505
Net income attributable to noncontrolling interests
8,152
21,614
Net income attributable to owners of the parent

11

Quarterly 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
Quarterly comprehensive income
Comprehensive income attributable to:
Owners of the parent
Noncontrolling interests

12

Fiscal 2023 1Q
Fiscal 2024 1Q(January 1, 2023 – (January 1, 2024 –March 31, 2023)
March 31, 2024)
8,410
22,120
753

1,495

(420)
7,198

(75)
33,293

81

40

71

160

7,684
16,09434,91357,033

15,584510

56,496537

(3) Notes regarding Quarterly Consolidated Financial Statements
Notes regarding Going Concern Assumptions
None
Material Changes in Shareholders’ Equity
None
Segment Information, etc.
● Segment Information
I. First Quarter of Fiscal 2023 (January 1, 2023 to March 31, 2023)
1. Net sales, income and loss by reporting segment(Millions of yen)
Reporting Segment
Vinyl Isoprene Functional
AcetateMaterials

Net sales
Outsidecustomers
Intersegment
sales andtransfers
Total
Segment income

93,737

12,382

44,252

4,077

3,398

1,126

97,815
17,82015,780190

45,3783,495

FibersandTextiles

Other
Business1
Trading

Total

Adjustment2 Consolidated
Statements
3of Income

Total

8,463 184,965—

184,9659,816

2,884 12,700(12,700)—

13,533 13,810 186,318
248 1,142 22,897

11,347 197,666
63 22,960(12,700)(1,635)

184,965
21,324

12,720 13,408 176,502
812

401

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 ¥1,635 million is theelimination of intersegment transactions of ¥1,830 million and corporate expenses of¥3,466 million. Corporate expenses mainly comprise the submitting company’s basic
research expenses.
3. Segment income is adjusted to agree with operating income in the consolidated
statements of income.

13

II. First Quarter of Fiscal 2024 (January 1, 2024 to March 31, 2024)
1. Net sales, income and loss by reporting segment(Millions of yen)
Reporting Segment
Vinyl Isoprene Functional
AcetateMaterials

Net sales
Outsidecustomers
Intersegment
sales andtransfers
Total
Segment income(loss)

FibersandTextiles

Other
Business1
Trading

Total

Adjustment2 Consolidated
Statements
3of IncomeTotal

94,863

12,76647,365

12,738 15,051 182,785

9,397 192,183—

192,183

4,177

4,389

1,368

1,091

266 11,293

2,336 13,629(13,629)—

99,041

17,155

48,733

13,829 15,317 194,079

11,734 205,813(13,629)

192,183

24,788213,242

428 29,575(781)

28,793(243)

1,336 29,146

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 ¥781 million is theelimination of intersegment transactions of ¥2,522 million and corporate expenses of¥3,304 million. Corporate expenses mainly comprise the submitting company’s basic
research expenses.
3. Segment income(loss) is adjusted to agree with operating income in the consolidated
statements of income.

14