June 24, 2022

Management Briefing
Kuraray Co., Ltd.

Today’s agenda
1. About our new tagline “Possible starts here”
2. Kuraray Group’s Sustainability

Possible starts here

About our new tagline “Possible starts here”

Possible starts here

Tagline “Possible starts here”

1980’s～1990’s

2022～

2000’s～2010’s

4Tagline “Possible starts here”

Thoughts in the tagline• Our desire is to co-create value with society
for a better future—starting with the Kuraray
Group.
• Since our founding, we have contributed tothe creation of new value under our mission“For people and the planet—to achieve whatno one else can.”.
• We believe our pioneering technology cancontribute to solve the issues of the societyand environment.
• Possibility changes the world. And it starts
here.
5Brand Story（Background story in the tagline）
Beyond impossible lies what’s possible.
Waiting to be discovered by those with the courage
to challenge the norm and bring about change.

Nearly a century ago, one such pioneer madeit possible for a successful company to serve thegreater good and society at large.
While also rewarding and nurturing its employees
and stakeholders.

Background story• A story that conveys our thoughts and values
that we have cherished since our founding,which is the background of the tagline.

That company is Kuraray.
And today while we face new challenges;
The need to protect the environment.
The need to improve global health.
The need to create cleaner chemicals.
That founding belief in what’s possible remains unchanged.
We still work for the benefit of all.
We still trust in our expertise in chemistry to go beyond and innovate.
And we still embrace the power of collaboration with others.
Knowing we’re stronger and better, when working together
to change impossible into possible for everyone.

How we plan use the tagline• Used together with the corporate logo on
websites and advertisements and so on, forbetter communication to convey the thoughtsof the Kuraray Group to stakeholders
including employees.

As we make our journey together towards a fairer, safer,more sustainable future, a real possibility.
Possibility can change the world. And it starts here.

6Kuraray Group’s Sustainability

Possible starts hereThree Challenges

Set three challenges to tackle during the medium-term management plan “PASSION 2026”
period.

PASSION 2026

Sustainability as anopportunity
Our
Challenges

Take sustainability as anopportunity and promote itwith the collective strengthof the whole group

Innovations startingfrom networking

Transformation ofpeople and organization

Create a growth driver byconnecting people withpeople, and technologies
with technologies, bothwithin and outside theCompany

Transform people andorganization via the digitaldriven process innovation andthe promotion of diversity
which will, in turn, help us
bring to bear a broad range ofideas
8Sustainability Medium-Term Plan “3P model”

Products Improving the natural environment
and the living environment

Reducing GHG emissions
Energy saving, Water resources,
Waste reduction, Chemicalsubstances

Circular economy
Sustainability Procurement

Initiatives to counter climatechange (TCFD)

Product

PlanetProsperity
Social Prosperity

PeopleOccupational Safety, Process Safety and Disaster Prevention
Diversity & Inclusion
Talent development
Social Contribution Activities
Reference: https://www.kuraray.co.jp/csr/report2022/strategy

9Take “Decarbonization” as an opportunity

Creating Values with Reducing GHG Emissions and Expanding Products that Contribute to
the Natural Environment and the Living Environment

Reduction in GHG emissions
Reducing its own Scope1 to 3
⇒ Reducing Customers' Scope3
Obtaining SBT* certification
Developing new technology
Co-creation with business partners

Expansion of products contributing to
the natural environment and livingenvironment
Reducing GHG emissions at the use
stage of customers or final products⇒ Energy saving⇒ Contributing to Reduce,
Reuse, and Recycle⇒ Reduction of waste, etc.
Developing new technologies, newproducts, and new applications
Co-creation with business partners* SBT(Science Based Target) : Voluntary targets set by business corporations with regards to GHG emission reductions
over the course of 5 to 15 years in a manner consistent with the levels required by the Paris Agreement

10Initiatives to Achieve Net Zero Carbon Emissions
Toward our FY2050 target of net zero carbon emissions,* we aim to reduce GHG emissions arisingfrom our operations by 30% until FY2030 compared with the FY2019 level.
* Scope 1 and 2 emissions

Emissions

Emissions3,230 kt

2,230 kt
Expansion ofproduction
capacities

Scope 1
Byproducts, etc.

Energy-saving
investment

30%Process
improvement

reduction

Transition torenewableenergyScope 1In-house
power
generation

Plans call for executing
CAPEX of ¥80 billion by 2030
to reduce GHG emissions

CCUS
※2

Shift of energy
sources
New technologies
New energy
sources

Consider the earliest possible introduction of practicable
CO2 reduction technologies by paying attention to futuretechnological trends

Scope２
PurchasedenergyFY2019Net zerocarbonemissions*2 Carbon dioxide Capture, Utilization and Storage: An initiative toutilize or store CO2 separated from exhaust gas from industrial
facilities.

FY2030FY205011

Roadmap for Reducing Scope3 Emissions

Aim to obtain SBT certification in fiscal 2024
FY2022
FY2022

Calculation ofemission

Expandingcalculation scope

FY2023

Expanding coverage to entire Group; identifying
categories that account for two-thirds of total
emissions

Collaboration withbusiness partners

Communication with partners in the supply chain
and obtaining LCI* data

Improving
calculation
accuracy

Improved accuracy of calculating GHG emissions byusing accumulated and/or data instead of amount data

Formulating Scope 3emission reduction plans

SBT certification

FY2024

Setting numerical
reduction targets
Certified12Expansion of Contributing Products and PSA (Portfolio Sustainability Assessment)
1) Business Divisions and Companies formulate MediumTerm Plans for products that contribute to materiality

2) Establish Kuraray Group PSA System and Implement
objective assessment
Basic Requirement

Stakeholder Requirement

Performance

Chemical Hazard and safety management
Compliance with Kuraray’s code of conduct
Economic contribution to company success
Reputational risk

Regional regulatory trends
Sustainability ambitions in the value chain
Eco labels and certifications

Relative performance againstbenchmark

3) Formulate of company-wide plans basedon high scores (4 or 5) products<Evaluation Rank>

5Top performance4

Positive performance

3Neutral2

Negative performance

1High risk

PSA
Contribution
products

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Portfolio Sustainability Assessment
PSA is a product portfolio assessment index for all industries guided byWBCSD (World Business Council for Sustainable Development).
With the support by Sphera, we created the Kuraray PSA System, which
complies with the WBCSD’s chemical industry guidelines.

Signal category
Mandatory

Chemical Industry
Methodology forPortfolio
Sustainability
Assessment (PSA)
Source: "Chemical Industry Methodology for Portfolio
Sustainability Assessment"
URL; https://www.wbcsd.org/Programs/CircularEconomy/Resources/Chemical-Industry-Methodology-forPortfolio-Sustainability-Assessments

Chemical hazard and exposure across the life cycle
Global regulatory trends
Authoritative ecolabels
Sustainability ambitions in the value chain
Sustainability performance compared to alternative solutions
Optional
Economic value creation vs. the use of natural capital
Contribution the Sustainable Development Goals
Company internal guidelines & objectives: Signal Categories Adopted by Kuraray PSA Evaluation System

14Overview of Kuraray Group’s PSA system
Unit of evaluation：PARC
Combination of Product、Application、Region<Evaluation Rank>

BasicRequirement
OK

Stakeholder
Requirement

Performance

PSA Contribution Products

5

Top performance4

Positive performance

3Neutral2

Negative performance

1High risk

NG
Chemical Hazard andsafety management
Compliance with Kuraray's
code of conduct
Economic contribution tocompany success
Reputational risk

Regional regulatory trends
Sustainability ambitions in
the value chain
Eco labels and certifications

Relative performance against
benchmarkKuraray’s Unique Signal Category15

An example of performance evaluation element
Include elements that have high contribution to the living environment in the performance
evaluation element
Elements used for performance evaluation

Uses Bio-based and / or Recycled Raw Materials
Reduces GHG emissions in production
Contributes to higher Energy Efficiency
Contributes to reduction of Water Consumption
Improves use of final product (extended use phase, durability)
Improves safe use of final solution
Improves public or personal health and / or hygiene

Mandatory elements
Elements that have high contribution to the natural environment
Elements that have high contribution to the living environment

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Example of high PSA score products and the point of the evaluation result

Products that are “Improving the natural environment” and “Improving the livingenvironment “ and the points of PSA evaluation result
Improving living environment

Improving naturalenvironment
Asbestos substitutes
KURARON

Help extend the life ofcement materials
Less GHG emission
compare to competitive
products

Water and air purification
Activatedcarbon

ECOTALK polyester
CLARINO
man-made leather
Reduce scope3 GHG
emission

Bio-based gas barriermaterial PLANTIC
Easy to reactivate
Suitable for environmental
regulation

Dentalmaterials

EVAL EVOH resin
Recyclable（Contribute toCE*)
Reduce food loss

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

Lower logistical burden/
Food loss reduction

Make dentists and patients lifeeasierReduce Scope３ GHG
emission
Reduce food loss

Shorten time of treatment
Reduce number of
replacement by long-lastingproducts

High-speed communication
VECSTARRealize high-speed
communication

Lightweight EVs
GENESTAR heat-resistantpolyamide resin
Improve durability ofend-product*CE：Circular Economy

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Utilization of PSA

Utilize PSA other than product screening that contribute to the natural and living environment

As an indicator
As a stage gate system for newproduct development
Criteria for decision making of CAPEXIn our daily operations
Simulation systems for marketing andapplication development(to generate new idea)

To confirm appeal points of the product18

Portfolio management

PSA and ICP are used for evaluation elements of social and environmental value※※ICP:Internal Carbon Pricing

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Utilization of ICP (Internal Carbon Pricing)

Kuraray Group's ICP system
Internal Carbon price ¥10,000/t-CO2 (calculated using internal exchange rates at overseas)
Effective fromJanuary 1, 2022

Already implemented

Under consideration

CAPEX that increases/decreases
GHG emissions

Converting GHG emissions of eachbusiness and product to cost at an
Internal Carbon price and evaluate
their resilience to future carbon
taxes, etc.

Calculating virtual cost/profit with
Internal Carbon price and use as oneof criteria to make a decision of theinvestment

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Upgrading Business Portfolio Management

Based on assessments of social, environmental and economic value arising from eachbusiness, we will constantly upgrade our portfolio by reshuffling its components in light ofproduct applications, geographic locations of markets and other factors.
Map of our business portfolio

Priorities in resource
allocations

Digitalization/communications
Concerns forthe global
environment

Water-soluble PVOH film

Social andenvironmental value

Highly functional plastics(GENESTAR , VECSTAR , etc.)

Dental materials

Food andwater security
Effective
utilization ofenergy

Reductionorwithdrawal

Growingbusinesses andproducts

EVAL
Carbon materials

Call for higher
QOL

Optical-use poval film

Economic value
Annual assessments based on the Standards for Business
Reevaluation (profitability and efficiency)

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