I am Kobayashi, the President and Chief Executive Officer.
I will talk about how I see the current situation as president and what we would like to
do in the future.
In April last year, we launched a new medium- to long-term management plan, “Toward
Creating a New Future (FY2023-2030)”.
The plan was launched with the aim of improving mid- to long- term corporate value andcontributing toward a sustainable society.
The basic concept of that plan was to grow the polyvinylidene fluoride (PVDF) businessas the core of the Company’s operations until 2030.
However, from the first year, the business environment was very unstable, and so weformulated the "Kureha Group Medium to Long-Term Management Plan, the Rolling Plan
2025 (the Rolling Plan 2025)” as the plan until the fiscal year 2025.
Our market forecasts for electric vehicles (EVs) might not be sufficient and we were notprepared enough for the worst-case scenario in our original plan.
The issue we are facing is how to change the profit structure that has been overly
dependent on the PVDF business.
We will create a structure that will generate stable profits as quickly as possible, PPS,and PGA. In addition, agrochemicals will also generate significant profits around 2030.
We will take on challenge to make our existing business a pillar of profit in the future.

0Another thing is a request from the Tokyo Stock Exchange for “action to implement
management that is conscious of cost of capital and stock price”.
We thought we had incorporated such factors in the new medium-term management
plan we announced last year. But looking at stock price movements, we feel that we may
not have fully met the expectations of our shareholders.
In the Rolling Plan 2025, we have set new ROE and PBR targets for fiscal 2025, and havecreated a scenario to achieve these goals.
This time, we have reviewed shareholder returns and the dividend payout ratio, and weare aiming to create a new Kureha by shifting from a focus on stability to utilizing thecapital and linking it to growth.

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I am Tanaka, the Senior Vice President and General Manager of Corporate Strategies &Accounting Division.
I will give an explanation based on the materials.
<Difference from the earnings forecast disclosed on March 27, 2024>
Last year, we made a second revision to our earnings forecast at the end of March.
We had forecasted 11 billion yen on an operating income, but the actual result was 12.8
billion yen, up 1.8 billion yen.
This is mainly because, customers secured inventories following the withdrawal from theML film business and expenses related to ML withdrawal were lower than expected.
Furthermore, group-wide activity expenses were also lower than expected.

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Comparison with the previous year (FY2023).
Both sales and profits were significantly lower than in FY2022.
<Revenue>
The main reason for the decline in sales was a drop in both volume and unit price of
PVDF, a binder for lithium-ion batteries, which had been very strong in 2021 and 2022.
< Core Operating Profit >In addition to the impact of PVDF on operating income by segment, the decrease inequity in earnings of the PPS business in the US, which was affected by the economic
slowdown and other factors, also contributed to the decline in profits.
Despite an improvement in profits due to a gain from inventory revaluation of processed
PGA, total core operating profit in FY2023 was lower than in FY2022.
<Operating Profit >Due to factors such as the cancellation of the PVDF expansion plan in China and the costsof withdrawing from the ML film business, ¥7.2 billion was recorded as other expenses,
resulting in a total of ¥12.8 billion, which was significantly lower than in FY2022.

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<Other income>In FY2022, an impairment loss was recorded for the ML film business on the assumptionthat the business would continue to operate. In FY2023, the decision was made towithdraw from this business, and 0.9 billion yen was recorded as a gain on reversal of
impairment loss, based on a market valuation of the equipment expected to be sold.
<Other Expenses>
In FY2023, we recorded other expenses of 2.3 billion yen for the cancellation of the PVDF
manufacturing facilities expansion plan in China, 2.8 billion yen for the withdrawal from
the ML film business, and 1.2 billion yen for the removal of existing facilities to increase
PVDF production at the Iwaki Plant.

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I will explain our earnings forecast for FY2024.
Although revenue is expected to be lower than in FY2023, operating income is expected
to be 14 billion yen, which is higher than in FY2023.
<Revenue>
We are planning based on the assumption that inventory adjustments by LiB
manufacturers will continue in FY2024. However, we expect the EV market to expand
gradually, and we forecast that sales of binder-type PVDF will bottom out in FY2023 andincrease gradually in FY2024.
Sales of the PGA business are expected to increase, mainly due to an expansion ofmarket share in the medium- to high underground temperatures market.
We forecast lower sales and profits for agrochemicals, as sales will decrease due toinventory adjustments at our customers. Then, including our withdrawal from the ML
film business, our sales revenue for FY2024 will be lower than that of FY2023.
<Core Operating Profit>
In the PPS business, we expect the profit improvement and an increase in equity inearnings of affiliates.
There is no significant changes in the business environment for household products, but
we expect to be lower than in FY2023 due to an increase in fixed cost burden and then
the withdrawal from the ML business.
Although the fixed cost burden is allocated to the entire company in terms of sales, theburden of household products increase due to the decline in PVDF sales. Although profits
are down from a segment perspective, but from a company-wide perspective, it is just a
matter of which segment will bear the fixed costs, and there is no problem.
<Operating Profit >We expect to see an increase in profits in FY2024 due to the absence of expenses suchas the cancellation of the expansion of PVDF manufacturing facilities in China and thewithdrawal from the ML business, which were recorded in FY2023.

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This is the cash flow forecast for FY2024.
Cash flow from operating activities will increase significantly due to improvements inworking capital and a decrease in income tax payments.
Cash flow from investing activities includes approximately 33 billion yen of capital
investment related to the expansion of PVDF manufacturing facilities at the Iwaki Plant.
Cash flow from financing activities will increase significantly from the previous year,
due to the use of bonds and other financing instruments to meet capital investment andshare buybacks.

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We will explain the main indicators.
All indicators dropped significantly in FY2023.
Each index other than PBR is due to the decline in profit, which is the numerator part ofthe calculation
We expect these indicators to recover in line with the gradual recovery of the PVDF
business environment.
We believe that the full-fledged market recovery will start in FY2025, and we recognizethat FY2024 is a temporary decline phase following FY2023.

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The net debt/equity ratio and equity ratio have changed due to an increase in borrowings
such as corporate bonds and the acquisition of treasury stock.
EPS has fallen due to a decline in profits, but we expect to see an increase due toimproved profits and share buybacks as the PVDF business environment gradually
recovers.

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Next, I will explain the "Kureha Group Medium to Long-Term Management Plan, theRolling Plan 2025 (the Rolling Plan 2025)”.
In April 2023, we started our new medium- to long-term management plan, “Toward
Creating a New Future”.
We have been working to achieve both “improving medium- to long-term corporate
value” and “contributing to a sustainable society”, but the PVDF business, which is a
growth driver, was forced to stagnate from the first year due to the slowdown in the EV
market growth.
However, this slowdown in growth does not mean that the market is shrinking, butrather that it is growing more slowly than expected.
We are confident that growth will be sustained over the long term.
However, our performance has declined in the short term, and we have formulated
growth measures for each business, including PVDF, and cost reduction measures for theentire company.

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<Performance Targets and Key Performance Indicators (KPIs) for FY2025>
Due to the unexpected PVDF outlook, we will not be able to reach the operating profit of
25 billion yen we announced last year, but we have formulated this rolling plan with thestrong intention of making Kureha a company with a 20 billion yen level in an operating
profit.
In addition, we have also set new targets for key performance indicators and capital
strategies to implement a balanced management approach that emphasizes return on
capital.
The performance targets and key performance indicators for FY2030 will be released at
the time of the announcement of the next medium-term management plan starting fromFY2026.
In the rolling plan, the performance targets for FY2025 were set at sales revenue of 185
billion yen or more and operating profit of 20 billion yen or more.
ROE declined to 4.5% in FY2023.We aim to improve profitability by expanding profits inexisting businesses and implementing company-wide cost reductions.
An optimal equity ratio of approximately 50% is set by reviewing the investment plan for
the PVDF business and reducing business risks.
As a result of these measures, we have set a new ROE target of 8% or more for FY2025.
In addition, we have also set a new target of achieving a PBR of 1x or above in FY2025
by improving ROE.

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We will explain our capital strategies.
In this rolling plan, We will not be changing the dividend payout ratio of 30% or more.
We have set a new minimal yearly dividend of 86.7 yen per share.
There will be no change in the total return ratio of 50% or more.
In addition, we have decided to double the amount of treasury shares to be acquired
from approximately 20 billion yen to approximately 40 billion yen over the three years
from FY2023 to FY2025. However, this is our premise that we will never fail to invest in
growth for the future.
We have set a policy for the cancellation of treasury stock.
To address market concerns about holding acquired treasury stock within the company,
we have decided that the Board of Directors will determine each year on the cancellationof treasury shares which are considered as surpluses.
We have decided to lower the equity ratio by 10 points from the previous level ofapproximately 60%, to an appropriate level of approximately 50%.
With regard to policy stockholdings, the Board of Directors periodically review by
scrutinizing the purpose, benefits, risks, and returns for each stock.
Stocks that have lost their significance will be sold gradually after considering therelationship with business relationship, impact on the market, effective use of funds, andother factors.

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Our basic policy on the distribution of earnings is to maintain stable dividends, while
enhancing internal reserves to enable active investment in future business expansion.

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I am Natake, and the Senior Vice President and Managing Director of Business Division.
I would like to provide a more detailed explanation of the PVDF business, which isundergoing significant changes in the business environment.
The largest application for our PVDF is as a binder for the cathode material in lithium-ion
secondary batteries for electric vehicles.
As shown in the graph on the left, global EV sales volumes are increasing, but thegrowth rate compared to the previous year is slowing down.
Although there is growth on a global scale, much of it is in the Chinese market, and inEurope, which is our main destination for PVDF, growth has been slowing.
There are several factors, one of which is that subsidies from European countries will be
reduced or suspended in FY2023. There is also high inflation, and the European economy
is sluggish. In addition, the early adopters have generally purchased, and there is abarrier to the expansion of sales from early adopters to the early majority, or what iscalled a chasm.
We understand that the incentive of subsidies still has a significant impact on sales in
Europe.
We believe that eco-friendly vehicles will continue to grow in the future, but that thegrowth will be balanced between plug-in hybrids and hybrids rather than EVs alone.

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We show the sales volume of PVDF.
Sales volume in FY2022 and FY2023 has decreased compared to FY2021.
In addition to the sluggish European market, we are entering an inventory adjustment
phase in 2021 and 2022 due to the production of electric vehicles and batteries thatexceeded actual demand, resulting in excess inventory.
We believe that this inventory adjustment phase may be prolonged until the end of
FY2024.
We expect that the overstock of EVs and batteries in the market will be eliminated after
2025 and sales will increase in proportion to the growth of actual demand.
In Europe as well, due to the slowdown in the growth rate of the EV market, there is asignificant divergence from the beginning of the medium- to long-term plan.

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We show PVDF sales trends.
In FY2021 and FY2022, sales revenue grew significantly. One of the reasons for this was
special demand resulting from sales that exceeded actual demand. The other reason is
the price pass-through of the high raw material prices that occurred during this period.
In FY2023, the European market was sluggish, the inventory adjustment was underway,
and unit prices also fell in response to the rapid decline in raw material prices. As aresult, the decline in FY2023 is very large.
Although the speed of market growth is slowing, we believe that the growth trend inboth Europe and the US remains unchanged. In addition, we continue to believe thatelectric vehicles are the key to meeting strict fuel efficiency and environmental standards
in Europe and the US. Once the inventory adjustment phase is over, we expect bothsales volume and sales amount to increase in line with actual demand.
In addition, our customers, lithium-ion battery manufacturers, are planning new
construction and expansion in the US, which will be concentrated around FY2025. At
present, the expansion plans are generally progressing as planned.
In FY2024, we have remaining inventories produced at a time of high raw material
prices, and we expect that these inventories will continue to be discharged until H1. In
addition, due to the impact of production adjustments, we expect the profit margin in
FY2024 to remain at the same level as in FY2023.
On the other hand, we expect the profit margin to improve and return to the pre-COVID19 pandemic level from FY2025, as the factory utilization ratio improves due to therecovery in sales volume.

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Page 38 describes the expansion plan in the medium- to long-term plan.
We plan to increase our production capacity of 20,000 tons by adding the 8,000 tons
expansion planned to be operational in FY2026 to the existing facilities.
In July 2021, we announced the construction of a second plant in China. However, there
have been delays in approval process due to changes in China‘s environmental policies.
In addition, the US Inflation Reduction Act has made it difficult to exports from China to
the US. We have decided to expand the Iwaki Plant, which was initially considered as a
backup. In March of this year, we announced the cancellation of the plan to build asecond plant in China.
Previously, we had plans to increase production capacity to approximately 30,000 tons
by FY2030, but the business environment has become uncertain, we are now consideringthat an approximately 20,000 tons facilities would be sufficient. Furthermore, we haveroom for debottlenecking.
This investment has also been supported by two types of governmental funds from the
Ministry of Economy, Trade and Industry as described in the materials.
According to the latest estimates, we expect a delay of two years compared to theoriginal plan until the plant is in full operation. The payback period was extended by one
year compared to the original plan, but we effectively secures profitability.

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I would like to explain two points regarding our awareness of the risks of the PVDF
business and how we are responding to them.
In the EU, the proposed restrictions will, in principle, collectively regulate more than
10,000 PFAS compounds, which are each different in terms of toxicity and potential
safety risks, and Kureha believes this is an excessive measure and lacks scientific basis.
We maintain our stance that fluoropolymers, including PVDF, should be exempted fromthe proposed restrictions because they are stable substances and are lobbying withchemical and other industrial organizations in Japan and the EU.
Next is iron phosphate (LFP) batteries, which are rapidly growing in China, and the
expansion of this market share poses the risk of a shrinking market share for our NMC
batteries. We believe NMC batteries will maintain an advantage in operating stability incold environments and per-charge mileage.
From the perspective of recycling, We believe NMC batteries will stay mainstream in the
US and European market, where recycling is important, because LFP batteries use iron
phosphate as a cathode material that is difficult and costly to recycle.
On the other hand, the LFP market has grown to account for half of the global battery
market, and we are also working to develop a PVDF binder for LFP batteries.
We were unable to anticipate the rapid slowdown in the growth of the EVs in the US andEuropean markets, resulting in a significant deviation from our plan. We believe that
there will be no doubt about the medium- to long-term growth of the EV market in the
US and Europe, and we will continue to take advantage of the U.S. market, where ourcustomers are constructing new plants, to achieve a path of growth in FY2025 andbeyond.
On the other hand, we will increase the number of customers by developing new gradesof binders, while assuming the risk of a further leveling off. We will continue tostrengthen our PVDF business by expanding sales to applications other than binders.

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Major Questions and Answers
Q: What are the major reasons that Specialty Plastics segment is expected to see asignificant decrease in operating profit by 3 billion yen in FY2024?
A: The majority of the decrease in sales is due to the withdrawal from themultilayer barrier shrink film business. There are two main factors behind thedecrease in profits.
One is that the sales of household wrap have become relatively large portion
among segments due to the decline in sales in the Advanced Material segment, andthe burden of company-wide overhead costs has been allocated onto the Specialty
Plastics segment.
The other is unexpected sales increase from the ML film business. In FY2023,there
was a demand for customers to build up their final inventories before thewithdrawal, but in FY2024, we are anticipating a loss due to the withdrawal, and adifference between FY2023 and FY 2024 is more than 1 billion yen.

Q: What is the breakdown of the 5 billion yen increase in sales and 900 million yen
increase in profits in the Advanced Materials segment?
A: Of the increased revenue, about 3 billion yen is from PGA. The majority of theremainder is from PVDF. In terms of profit, we are expecting about half of the profit
to come from the PVDF, and we are also expecting to improve the profitability of
PPS. So an overall increase in profit of 900 million yen, including those that will see
a decrease in profit.

Q: In the medium- to long-term management plan rolling plan, the forecast forsales of the Advanced Materials has decreased by 19 billion yen, and operating
profit has decreased by 6 billion yen. Is it correct to assume that PVDF accounts forthe majority of this?
A: You can assume that PVDF makes up the majority of the figure.

Q: Regarding PGA, I think the plan is for it to break even in FY2025, but if you
separate out the factors contributing to the increase in sales, the resumption ofresin production, and other improvements, what is the contribution rate?
What share of the market can we expect to gain in the Permian Basin, which is a
new market for us? What is the maximum share we can expect to gain in the
Bakken, which is a medium- to high-temperature oil field?

A: In our plan PGA business will be profitable in FY2025 even without gain frominventory revaluation, but the main factors behind the improvement from FY2024 toFY2025 will be the contribution of sales expansion.
While we had not manufactured PGA resin for three years, we have started
production again in FY 2024 and we plan to produce PGA resin in line with demand.
In addition, by producing resin, we expect to improve our profitability by roughly 3
billion yen.
Regarding your second question, at the moment, our market share is as shown on
page 41. We have the largest share, particularly in the high-temperature area,
Haynesville. However, as it is a gas field, it has a vulnerable aspect in that it isaffected by gas prices.
On the other hand, we have been focusing on the Bakken and Niobrara areas forseveral years now, and our market share in these areas is steadily increasing. While
it may be difficult to reach 40%, we are aiming for a market share of around 20% to30%.
In addition, the Permian region, which has a large market, is an oil-rich area with
low temperatures. This fiscal year, we will increase our market share in this region
by introducing plugs for low and ultralow temperatures. Due to its characteristics,
no company has adopted the full well bore as degradable solution. In particular, if
we can develop PGA plugs for low and ultralow temperatures, we will be able toexpand the sales with differentiated products into this area, so we plan to focus on
this in the future.