June 19, 2023

Management Briefing
Kuraray Co., Ltd.
© Copyright 2023 Kuraray Co., Ltd.

Today’s Agenda
1. Introduction

Hitoshi KawaharaPresident and Representative Director

2. MonoSol Divisionand its Strategy

Hiroaya Hayase
Representative Director and Senior Managing
Executive Officer
Vinyl Acetate Resin Company Executive Supervisor
Vinyl Acetate Film Company Executive Supervisor

Christian Herrmanns
Executive Officer,
General Manager of MonoSol Division,
MonoSol, LLC. President© Copyright 2023 Kuraray Co., Ltd.

2

Introduction : Vinyl Acetate Segment
We manufacture and sell materials from resin to film, starting with vinyl acetatemonomer as raw materials:VinylVinyl Acetate
Acetate Segment
Segment
Vinyl Acetate Film Company

Vinyl Acetate Resin Company
Poval Resin
Division

EvalDivision

KURARAY POVAL ,ELVANOL
PVOH resin

EVALTM
EVOH resin and film
PLANTICTM
Biomass-derived
gas barrier material

Poval Film
Division

Optical-use
poval film

MonoSol
Division

Water-soluble
PVOH film

Advance Interlayer
Solutions Division

TrosifolTM,
ButaciteTM PVB film
SentryGlasTM
Ionoplast interlayer© Copyright 2023 Kuraray Co., Ltd.

3

MonoSol Division and its Strategy-Growth Potential-© Copyright 2023 Kuraray Co., Ltd.

4

Introduction

MonoSol business within the Kuraray Group

Founded in 1953 in Indiana, USA
Acquired by Kuraray 2012
Part of Vinyl Acetate Film Company
750+ employees
7 plants© Copyright 2023 Kuraray Co., Ltd.

5

We believe in a
future wherenothing goes towaste.

© Copyright 2023 Kuraray Co., Ltd.

6

MonoSol’s mission is to innovatematerials that make everyday life
simpler, safer and more sustainable.

© Copyright 2023 Kuraray Co., Ltd.

7

Experts in water-soluble
biodegradable polymer science

Access To Kuraray Polymer
Synthesis InnovationGlobal Market and Regulatory
Expertise

Global Technical & Production
Support Network© Copyright 2023 Kuraray Co., Ltd.

8

Pioneersof soluble-unitdose detergent
technology(no. 1 globalmarket share)© Copyright 2023 Kuraray Co., Ltd.

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Other Water-Soluble Film Applications

B2B manufacturing
processes that use our film.

HospitalLaundry Bags

Agrochemicals

Personal Care &Cosmetics

Water Treatment Industrial / Institutional Embroidery

Solid Surface

CompositeMolding

Transfer Printing© Copyright 2023 Kuraray Co., Ltd.

10

Enhancing Quality of Life and the Environment

Beginning of life

In useEnd of life

We are increasing the percentage
of bio-based materials andrenewable energy to reduce ourcarbon footprint

Our materials work with consumers’ behavior
to create a simpler, safer and moresustainable product.
✓ Reduced waste✓ Safe handling of chemistry✓ Reduced energy consumption✓ Reduced CO2 emissions

Our products have an excellent
end-of-life story as they
biodegrade rapidly© Copyright 2023 Kuraray Co., Ltd.

11

Sustainability Endorsements
Ecovadis Silver Rating: Scored in 92nd
percentile of all companies evaluated
Ecolabel Compliant: Market-specificproducts designed for sustainability
endorsement by regulatory authorities
around the world
Environmental NGOs: MonoSol films
featured as solution to plastic packaging
waste problems by Ellen MacArthur
Foundation and WWF Australia© Copyright 2023 Kuraray Co., Ltd.

12

Our Competitive Advantage
Business Model:
Being an integral part of Kuraray
allows us to innovate resin and film tomeet customer end-productperformance criteria

Deep integration and collaboration
with the world’s largest CPG(Consumer Packaged Goods)
companies to drive product innovationand category growthLong-term, exclusive orsemi-exclusive supplyagreements

TechnicalSuperiority

Agile
Innovation

Drive undisputed
technical superiority inwater soluble film
development andproduction

Act with the speed andagility of a startup to
create business of thefuture

StrategicFocus
Operational
Excellence
Deliver quality, safety
and process
improvements to drive
productivity, investment
and margin
enhancement

Organization& Culture
Create a mission-driven
culture, committed toexcellence with safety
as the cornerstone ofeverything we do© Copyright 2023 Kuraray Co., Ltd.

13

MonoSol Division’s Sales and Volumes Trends（2013 as 100%）•(JPY)(%)

Current socio-economicconditions putting pressure on
consumer markets, especially inEurope while the US continues
modest growtho Russian market losso China lockdowns
o Inventory overstock forbusiness continuity during
COVID© Copyright 2023 Kuraray Co., Ltd.

1414

We have never been in a better position
with our top three global customers
Premium SUD format continues to grow in US/
European markets with, approximately 30% ofmarket today, heading to 50% share
Our largest, global customers are investingin the SUD format with marketing, R&D
and new production facilities
We must remain at the forefront ofinnovation and sustainability

Strategic Partner Status
Strategic supplier to top 3
consumer home care productcompanies, representing over90% of global laundry SUD
retail market.

We are well-positioned in fast-growing regional markets•

Asia Pacific market growth accelerating, beginning in Japan and has started to spread in the region.

•Current SUD market share is low compared to US/Europe and expected to grow significantly.

© Copyright 2023 Kuraray Co., Ltd.

15

MonoSol’s Growing Global ReachEurope- Hartlebury, UK- Frankfurt, Germany- Zimna Wódka, PolandUSA- Merrillville (Headquarters)- LaPorte- Portage- Duneland- Indy

Japan- Tokyo- Saijo

Hong Kong© Copyright 2023 Kuraray Co., Ltd.

16

Future Capacity Expansion Plan
New facility in Poland completed on timeand ready to start production.
The facility will regionalize the supply chain:
Resin > Film > Conversion > Customer

Benefits• Logistical business continuity• Shorter trade routes improve quality,
reduce cost and lower carbon emissions

The new production facility
in Poland is complete.

• In the near-term, capacity increase allows
maintenance and upgrades of U.S.-based lines• In the long-term, capacity increase required
to meet projected future demand© Copyright 2023 Kuraray Co., Ltd.

17

Thank you!
© Copyright 2023 Kuraray Co., Ltd.

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 orimplied by such figures or statements due to risks and uncertainties in the future business circumstances. The factors which may cause such difference include, withoutlimitation: (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.