December 18, 2023

Management Briefing
KURARAY CO., LTD.
© Copyright 2023 KURARAY CO., LTD.

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Today’s Agenda

1. Introduction

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

2. Dental Business and
its Strategy

Satoshi Yamaguchi
General Manager of Medical Division,
President of Kuraray Noritake Dental Inc.

© Copyright 2023 KURARAY CO., LTD.

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Introduction: Products that contribute to PSA
Kuraray Group Products that contribute to the Natural and Living Environments
Improving living environment

Improving naturalenvironment
Asbestos substitutes
KURARON
Help extend the life of cement materials
Fewer GHG emission compared tocompetitive products

Make dentists and patients lifeeasier
Water and air purification
ActivatedcarbonEnvironmentally friendly
polyester fiber and textile products
Recycled raw material-used
CLARINO™ man-made leather

Easy to reactivate
Suitable for environmental
regulation

Dental materials
Shorten time of treatment
Long-lasting products reduce number of
replacements

EVAL EVOH resin
Recyclable (contributes to acircular economy)
Reduces food loss

Bio-based or recycled raw
materials
Liquid rubber made frombio-based materials

Lower logistical burden/
Food loss reduction

Bio-based gas barriermaterial PLANTIC
Reduce Scope３ GHG emission
Reduce food loss

High-speed communication
VECSTARRealize high-speed
communication

Lightweight EVs
GENESTAR heat-resistantpolyamide resin
Improve durability of end-product

Reduce scope3 GHG emission© Copyright 2023 KURARAY CO., LTD.

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Introduction: Overview of Functional Material Segment
The segment have products and businesses that have high function
Functional Material Segment
Methacrylate
Division

Methacrylate resin

Medical Division

Dental material
Synthetic bone

Environmental
Solutions Division

Activated carbon
KURANODE , hardcarbon for lithium-ion
battery anodes

Environmental
Business Development
and Promotion Division

Industrial fiber
membranes© Copyright 2023 KURARAY CO., LTD.

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Dental Business and its Strategies© Copyright 2023 KURARAY CO., LTD.

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Overview of Kuraray Noritake Dental Inc.

➢ Kuraray Noritake Dental Inc. commenced operations following the integration of Kuraray Medical
Inc. and Noritake Dental Supply Co., Limited on April 1, 2012
➢ Investment ratio: 66.7% from Kuraray Co., Ltd. and 33.3% from Noritake Company Ltd.

➢ Principal businesses:
Development, production and sale of dental bonding agents, fillings, porcelains, CAD/CAM
materials, etc.
➢ Capital: ¥300 million➢ Representative: Mr. Satoshi Yamaguchi© Copyright 2023 KURARAY CO., LTD.

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Global Network
Producing and developing products at 2 sites in Japan.
Expanding global sales by leveraging Kuraray's sales network.
EuropeAmsterdam
Frankfurt
New York

Shanghai
Niigata

Milan

Paris

North
AmericaTokyo
Sao Paulo
Osaka

Miyoshi

Asia
OceaniaSouth
America

Production & Development Sites
Sales Offices© Copyright 2023 KURARAY CO., LTD.

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Global Dental Device Market
The entire market for dental devices is about ¥5 trillion. Of this, our target market is estimated to be ¥400
billion. The market is growing at an annual rate of about +3%. Developed countries such as the U.S.,
Europe and Japan account for 20-30% each of the market.
Dental device market total:¥5 trillion

Our target market(bonding agents, fillings, dental porcelains, CAD/CAM materials, etc.):¥400 billion (Kuraray estimates)
OthersOthers
U.S.

JP

U.S.

JP
EuropeEuropeData Source: Fitch Solutions “Worldwide Medical Devices Market Factbook” (2023 April)© Copyright 2023 KURARAY CO., LTD.

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Our Strength
Synergy from the integration of Kuraray Medical Inc. and Noritake Dental Supply Co., Limited
By having a wide range of resin and ceramic materials, we are able to provide a "total solution".

Resin materials

Produced at Niigata Plant (formerly produced by Kuraray Medical Inc.

Ceramic materials

Produced at Miyoshi Plant (formerly produced by Noritake Dental Supply Co., Limited)

Dentists
Milling

Porcelain, Zirconia(Crown)Bond(Adhere filling)

Treatment by crown

Cement(Adhere crown)

Composite Resin(CR)(Filling)

By providing main dental materials needed fortreatment all together, contributing to improving
convenience for dentists

Treatment by filling© Copyright 2023 KURARAY CO., LTD.

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Our Strength
Highly evaluated by REALITY, independent dental material evaluation agency in the U.S.
Number of products obtaining REALITY “FIVE STAR AWARD (Highest
Rating)” in Bond, Cement and Composite Resin category
Company F
1Company E
1Company G
1Company D
2Company C
3

Kuraray Noritake
Dental10Company B
4Company A
5
Source:© Copyright 2023 KURARAY CO., LTD.

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Progress of Medium-Term Management Plan
Steady progressing in each measure

Help improve QOL by shortening treatment time and contributing topreventive treatment and dental care for seniors.
➢ Expand the lineup of CAD/CAM materials, such as zirconia➢ Accelerate the development of bioactive materials

Progressing steadily toward launching new
products in 2024 and beyond

Strengthen sales and marketing capabilities➢ Strengthen marketing in Europe and the U.S.
➢ Enhance communications using the combination of conventional faceto-face sales and digital marketing

Strengthening marketing activities cooperating with
KOL* (Key Opinion Leader)

Establish the product supply system to achieve global businessexpansionDeveloping an efficient and optimal global supply
chain. In response to increased sales, expanding
production capacity by hiring personnel andconducting capital investment.

➢ Strengthen stockpile management➢ Expand production capacity*KOL: Dentists and dental technicians who are familiar with trends in dental
treatment and materials. They provide guides for product selection andtreatment to other dentists and dental technicians.

© Copyright 2023 KURARAY CO., LTD.

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Trends in Dental Materials
Wide spread of demetallization and use of CAD/CAM system

Demetallization

Ceramic and resin materials are becoming mainstream,
rather than metal

Use of CAD/CAM system

Milling of CAD/CAM materials is becoming mainstream,
rather than the building of porcelain by hand

© Copyright 2023 KURARAY CO., LTD.

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Development
Focused Product

Zirconia Block

Zirconia CAD/CAM materials for dental crowns used in dental clinics
Having high strength and color gradation close to that of natural teeth
Metal

StrengthEsthetics

Zirconia BlockStrengthEsthetics

Image of dental crown making process by Zirconia Block
Drastically reduced processing time for crowns, enabling one-day treatment
Expanding sales mainly in the U.S. by meeting the need to refrain from going out during pandemic

Visitdental clinic
Intraoral scanningand designing

Milling

SinteringComplete

At fastest 5 Minutes

At fastest 18 minutes(Fitting on the same day)© Copyright 2023 KURARAY CO., LTD.

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Product Development
The market for CAD/CAM materials for dental clinics is expanding, mainly in the U.S..
Since the launch of the Zirconia Block, which has the high strength, high esthetics and short processing time, sales
are expanding at an annual rate of +60%
Market size of CAD/CAM materials for clinics(Blue part=Zirconia Block)

Kuraray Noritake Dental’s Zirconia Block Sales trend(2019 as 100%)500%

Europe: ¥1.1 billion

U.S.: ¥2.3 billion

Zirconia Block
Sales Results(2023 is Forecast)

400%

Japan: ¥1.5 billion

Sales by Region

300%

Others

200%
U.S.

100%
2019

2020

2021

2022

2023

*All Market size are estimated by Kuraray.
© Copyright 2023 KURARAY CO., LTD.

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Capacity Expansion at Miyoshi Plant➢ To accelerate expansion of dental business, decided to invest in
production capacity expansion for ceramic materials at Miyoshi
Plant (Miyoshi City, Aichi Prefecture)

Investment Overview➢ Location: Miyoshi City, Aichi Prefecture in Miyoshi Plant of Noritake➢ Capacity Expansion: At most +250t/year, Total capacity 490t/year(Including future investment. Expansion by this time’s investment is +60t/year, Total capacity 300t/year➢ Start of operation: Middle of 2026
➢ Investment amount: ¥2.2 billion➢ Total floor area: about 12,000m2
Ceramic materials© Copyright 2023 KURARAY CO., LTD.

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Sales Overview

Kuraray Noritake Dental’s Sales trend
During the period of Medium-Term
Management Plan from 2022 to 2026, we areaiming for annual sales growth rate of +10%
by expanding sales in the U.S. and Europe.
Regarding the progress of Medium-Term
Management Plan, sales growth rate has beensignificantly exceeding +10%.

2019 as 100%Result (Percentage of 2023 and 2024 are Forecast)Medium-Term Management Plan

180%
160%
140%
120%
100%
80%

2019

2020

2021

2022

2023

2024

2025

2026

© Copyright 2023 KURARAY CO., LTD.

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At the end. . .

We aim to develop new technology and products that
improve the QOL of dentists and patients.

© Copyright 2023 KURARAY CO., LTD.

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All figures are rounded to the nearest hundred million yen.
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 or
implied 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.
© Copyright 2023 KURARAY CO., LTD.

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