FY2023 1Q Results

August 8, 2023

1Key Takeaways

1QFY23 Operating Results(billion yen)

Advanced Materials
Specialty Chemicals
Specialty Plastics
Construction
Other operation
Revenue
Advanced Materials
Specialty Chemicals
Specialty Plastics
Construction
Other operation
Core operating profit
Adjustments
Operating profit
Profit attributable toKureha

FY23

FY221Q
16.4
9.2
11.7
2.2
4.3
43.8
1.2
0.7
2.2
0.1
0.6
4.8
0.2
4.9

1Q
24.5
6.6
11.9
1.9
4.3
49.3
5.6
-0.3
2.1
0.1
0.6
8.1
0.0
8.1

3.2

5.5

ChangeYoy-8.1
2.6-0.2
0.2
-0.0
-5.5
-4.5
1.0
0.1
-0.0
-0.0
-3.4
0.2
-3.2
-2.2

FY23 Forecast
1H39.0
19.0
23.8
6.0
8.2
96.0
2.6
1.5
3.0
0.2
0.7
8.0

2H
40.0
15.6
23.3
6.0
9.1
94.0
10.4
-0.3
2.6
0.3
1.0
14.0

Fullyear
79.0
34.6
47.1
12.0
17.3
190.0
13.0
1.2
5.6
0.5
1.7
22.0

8.0

14.0

22.0

5.3

10.2

15.5

• 1Q revenue and earnings decreased YOYprimarily due to weaker PVDF performance inAdvanced Materials• PVDF price, interlinked with raw material prices,
continued to slide after 1Q last year: profit
margin improvement is likely seen in thesecond half year when existing inventory (withhigh raw material cost) is replaced by newitems.
• YOY growth in Specialty Chemicals revenue
and earnings resulted from a front-loaded
shipment for agrochemicals, which however
will not impact half-year/full-year segment
earnings forecasts

2

FY2023-1Q Financial Summary (1)(in billions of yen except for per-share values)Vs. 1QFY221Q
FY221QFY23ChangeYOYRevenue

49.3

43.8-5.5(-11.2%)• Revenue fell due largely to weaker sales of
PVDF (LiB binder) and packaging materials

Core operating profit

8.1

4.8-3.4(-41.5%)• Core operating profit declined on weakening in
Advanced Materials

Adjustments
Other income
Other expenses
Operating profit

-0.0
0.2
0.2

-0.1
0.4
0.1-0.1• Operating profit decreased as a result of fewer
core operating profit

8.1

4.9

Financial income
Financial expenses
Profit before taxes

0.4
0.1

0.7
0.0

8.5

5.6

-2.9(-34.2%)

5.53.2-2.2(-40.7%)¥279.79167.25

Profit for the period
attributable to Kureha
Basic profit per share(¥)(Currency exchange rates)
1USD =
1EUR =
1CNY =¥129.7¥138.3¥19.6

I¥137.5¥149.6
¥19.6

0.2
-0.1
-3.2
(-39.4%)0.3-0.0• Profit attributable to Kureha decreased as aresult of fewer profit before taxes

3

FY2023-1Q Financial Summary (2)Segment performance (vs. 1QFY21)(in billions of yen)

Revenue

1QFY22
1QFY23

24.5

Core operating profit
5.6

1QFY22
1QFY23

16.4
11.9 11.72.1 2.29.2

1.26.6
1.9 2.20.7

4.3 4.3

Other
Advanced 化学製品
Specialty 樹脂製品
Specialty Construction
機能製品
建設関連 その他関連
Operations
Materials Chemicals Plastics

0.1 0.1

0.6 0.6-0.3
Advanced
機能製品 Specialty
化学製品
Materials Chemicals

Other
樹脂製品 Construction
建設関連 その他関連
Specialty
Operations
Plastics

Factors affecting core operating profit
AM: Lower pricing for PVDF to reflect lower raw materials prices, impact of existing inventory with high input cost
related to PVDF
SC: Sales expansion for agrochemicals and industrial chemicals
SP: Higher home products and fishing line sales partially offset by softening in packaging materials
CO: Construction volume growth in private sector offset by higher material cost
OO: Higher industrial waste treatment volume offset by softening in transportation and hospital operation

4Segment Performance:
Advanced Materials(in billions of yen)

1Q
FY22

1Q
FY23

Vs. 1QFY22
Change%Advanced Materials

Revenue ➘Operating profit ➘Advanced plastics revenue and profit down:

Advanced plastics

19.2

11.9-38%+ Sales expansion for PPS and PGA

Carbon products

1.5

1.9+26%- Lower PVDF pricing

Other

3.7

2.6+31%Revenue

24.5

16.4-33%

Operating profit

5.6

1.2-79%Carbon products revenue and profit up:+ Higher carbon fiber volume in the high-heat
furnace insulation market

5

Segment Performance:
Specialty Chemicals(in billions of yen)

1Q
FY22

1Q
FY23

Vs. 1QFY22
Change%Revenue ➚Agrochemicals & Pharmaceuticals revenue andprofit up:Specialty Chemicals
Agrochemicals

1.6

3.3+109%

Pharmaceuticals

1.1

0.9-18%Industrial chemicals

2.1

2.9+39%

Other

1.9

2.1+13%

6.6

9.2+39%

Revenue

Operating profit ➚+ Higher agrochemicals volume- Slower sales of Kremezin, a therapeutic agent
for chronic kidney failures
Industrial chemicals revenue and profit up:+ Sales growth of organic and inorganic chemicals

Operating profit

-0.3

0.7--

6Segment Performance:
Specialty Plastics(in billions of yen)

1Q
FY22

1Q
FY23

Vs. 1QFY22
Change%Specialty Plastics

Revenue ➘Operating profit ➚Home products & Fishing lines revenue and profit up:

Home products

5.8

6.1

+6%

Fishing lines

1.2

1.3

+9%

Packaging materials

3.8

3.2

-16%

Other

1.1

1.0-7%+ Lower cost

Revenue

11.9

11.7-2%- Slower heat shrink multilayer film and PVDC film
sales

Operating profit

2.1

2.2

+7%

+ Sales expansion for New Krewrap food wrap filmand Seaguar fishing lines

Packaging materials revenue down, profit up:

7Segment Performance:
Construction(in billions of yen)

1Q
FY221Q
FY23

Vs. 1QFY22
Change%Revenue ➚Operating profit →Construction revenue up, profit flat:

Construction
Revenue

1.9

2.2+13%Operating profit

0.1

0.1

-21%+ Higher private construction volume

Revenue →Other Operations
Environmental
engineering
Logistics
Hospital operationOthers
Revenue
Operating profit

Operating profit →Environmental engineering revenue and profit up:
2.4

2.7

+10%

0.6
1.1
0.2
4.3

0.4
1.0
0.2
4.3

-35%
-5%
+1%

Logistics revenue and profit down

-1%

0.6

0.6-8%

Hospital Operations revenue and profit down
(operating loss)

Note: Revenues from Construction and Other Operations have been adjusted byexcluding inter-company sales. For references, segment revenues on thisaccounting basis are indicated on the right.

+ Volume growth in low-level PCB waste treatment

FY22 Actual
FY23 Forecast1Q2Q
3Q
4Q Total 1H
2H
TotalConstruction
1.9 2.3 2.7 4.4 11.3
6.0
6.0 12.0
2.4 2.8 3.3 2.9 11.3
10.7
Environment
0.6 0.7 0.7 0.6 2.6
1.7
Logistics
1.1 1.0 1.0 1.0 4.1
4.4
Hospital
0.2 0.1 0.2 0.1 0.6
0.5
OthersOther operations
4.3 4.6 5.2 4.6 18.7
8.2
9.1 17.3

8Financial Position(in billions of yen)

AssetsLiabilities and Equity
Mar. 312023

Jun. 30
Change2023

Mar. 312023

Jun. 30
Change2023

Cash and cash equivalents

32.2

33.3

1.1

Trade and other payables

27.7

23.9

-3.7

Trade and other receivables

31.9

33.3

1.4

Interest-bearing debt

26.3

39.3

13.0

Inventories

52.0

53.5

1.5

Provisions

8.5

6.5

-2.0

Other current assets

4.9

6.1

1.1

Other liabilities

17.2

18.3

1.1

Total current assets

121.0

126.1

5.1

Total liabilities

79.6

88.0

8.4

Property, plant and equipment

117.4

118.2

0.8

Shareholders’ equity

18.2

18.2

-Intangible assets

4.5

4.8

0.3

Capital surplus

14.7

14.7

-

Investments and other assets

53.5

58.14.6

Less: Treasury stock-8.7-2.3

6.4 *Retained earnings

179.0

171.4

-7.5 **

Other components of equity

12.1

15.7

3.7

Non-controlling interests

1.6

1.6

-0.0

Total non-current assets

175.4

181.1

5.7

Total equity

216.8

219.3

2.5

Total assets

296.4

307.3

10.9

Total liabilities and equity

296.4

307.3

10.9

* Treasury shares disposed (+¥9.1bn) and acquired (-¥2.7bn)**Treasury shares disposed (-¥9.1bn); net income (+¥3.2bn); dividends (-¥2.8bn), etc.
Note that Kureha disposed total 1,280,000 treasury shares on June 30, 2023

Key Strategic Business: Polyvinylidene Fluoride(PVDF)
PVDF revenue trends
15015• Automobile LiB demand is projected to growcontinually, however the current economic downturnin Europe and semiconductor shortages for EVs areforcing LiB makers to adjust their inventories(¥ billions)
LiB binder
電池向け

素材向け
Other applications
100
10• In 1QFY23, Kureha PVDF sales volume remained at
3Q/4QFY22 levels; volume recovery is anticipated in2Q and onward after inventory optimization while theLiB market rebounds

50501Q2Q
FY213Q

4Q

1Q
2Q
FY223Q

4Q

1Q
FY23

• Due to our existing inventory with high input cost(high-priced raw materials in prior year), profit margin
is deteriorating but will improve after inventory
replacement• Kureha aims to increase PVDF production capacityfrom current 11,000tpa to 30,000tpa by end FY30,with incremental production lines anddebottlenecking at its Japan Iwaki Factory andfurther expanding global production bases

PVDF sales volume*Assuming FY21 sales volume as 100%%

100• Kureha begins to procure raw materials from multiple
geographies to hedge against geopolitical risks

80
FY21 Actual

FY22 Actual

FY23 Forecast

9Key Strategic Business: Polyglycolic Acid(PGA)

10PGA revenue trends(¥ billions)220• The US shale oil and gas rig count has rebounded to90% of pre-pandemic levels and will likely increasesteadily on grounds of OPEC production cuts and global
geopolitical concerns

110• Kureha continues to increase PGA frac plug sales in theflat growth market with its effective flexible pricing
strategy starting in 2020 Fall and by expanding the‘fullbore’ application for PGA plugs (use for an entire
wellbore rather than partially) in high-and midtemperature oilfields

01Q
2Q
FY213Q

4Q

1Q
2Q
FY223Q

4Q

1Q
FY23

• FY23 sales volume is further driven by the expansion of
an improved short-typed PGA plug

PGA frac plug sales volume

Revised 10,Aug. 2023

*Assuming FY19 sales volume as 100%

500%

0%
FY19

FY20

FY21

FY22

FY23Forecast• Field trials are ongoing for a new plug used in lowtemperature oilfields (where more than half of US activerigs are located); product launch aimed by end FY23

11FY2023 Full-Year Guidance*Maintained as announced on May 12, 2023
(in billions of yen)

FY2022

FY2023eChange

1H2H

FYYOY

-1.3

Revenue

191.3

96.0

94.0

190.0

Core operating profit

24.3

8.0

14.0

22.0

Adjustments
Other income
Other expenses

-0.2
1.2
3.0

-0.3
0.3

-0.2
0.2

-0.5
0.5

Operating profit

22.4

8.0

14.0

22.0

Financial income
Financial expenses

0.9
0.2

0.3
0.3

0.3
0.3

0.6
0.6

-0.3
0.4

Profit before taxes

23.0

8.0

14.022.0-1.0

Profit attributable toowners of Kureha Corp.

16.9

5.3

10.2

15.5

Basic profit per share¥864.3¥819.3$96¥135.5¥141.0¥19.8$85¥135.0¥140.0¥19.0[References]
Crude oil (US$/bbl)
FOREX ¥/USD:¥/EUR:¥/CNY:(-0.7%)-2.3(-9.5%)

0.2
-0.7
-2.5
-0.4
(-1.6%)(-4.3%)-1.4(-8.1%)

Vs. FY2022• Revenue to remain on par with prior year
as growth in PGA, PPS, agrochemicals
and industrial chemicals offset lower PVDF
prices (reflecting lower raw material prices)• Core operating profit to fall in all segments
except Advanced Materials due largely tohigher SG&A expenses and R&D cost,
partially offset by improved profit in PGA
within Advanced Materials• Operating profit to decrease on lower core
operating profit, despite the absence ofimpairment charges recorded in prior year
• Profit attributable to the Company tocontract as a result of lower operatingprofit

12FY2023 Full-Year Guidance*Maintained as announced on May 12, 2023(¥ billion)

Segment Revenue & Core Operating Profit (vs. FY2022)
RevenueCore operating profit

FY202282.7 79.0

13.0

FY2023e

FY2022
FY2023e10.1
8.6

46.8 47.1

5.6

31.8 34.6
18.7 17.3
11.3 12.0
機能製品 化学製品
樹脂製品 Construction
建設関連 その他関連
Other
Advanced
Specialty Specialty
Operations
Materials Chemicals Plastics

1.8 1.2
機能製品
Advanced
Materials

化学製品
Specialty
Chemicals

2.8
0.9 0.5

1.7

樹脂製品 Construction
建設関連 その他関連
Other
Specialty
Operations
Plastics

Factors affecting operating profit changes
AM: Improved profit related to PGA (a decrease in its inventory evaluation loss) partially offset by lower PVDF
prices and effects of existing PVDF inventory with high input cost
SC: Higher R&D expenses related to new agrochemicals and negative impact of mandatory drug price revisions
partially offset by continued price actions
SP: Slower sales and higher SG&A expenses in home products, higher raw material and energy costs inpackaging materials
CO: Intensifying competition, higher construction material cost
OO: Lower sales volume related to low-level PCB waste treatment

13Strengthening Corporate Governance
New Stock Compensation Plans

Election of Female Outside Board Director

Kureha implemented the following stock-based
remuneration system for members of the Board of Directors
excluding Outside Board Directors. Through this new
reward system, Kureha will provide Board Directors withincentive to help increase the Company’s value, further
promote their sense of sharing common interests withshareholders, and make clear the linkage between
company performance and their remuneration.

Kureha’s new female Outside Board Director wasnominated and subsequently approved during the June
2023 General Shareholders Meeting. Kureha aims tomake its decision-making process more comprehensiveand well-balanced by promoting the participation ofBoard Directors with diversified backgrounds andviewpoints. We will further strengthen corporate
governance at all levels to realize sustainable growth.

Previous stock-based
compensation plan (stock option)
Total ¥40 million or less per year

Advanced Awarding Restricted
Stock Remuneration Plan

Kureha Corporation Board of Directors

Total ¥50 million or less every year

Performance-based Restricted
Stock Remuneration Plan
Total ¥300 million or less
Period of first performance assessment: 3 years
Performance assessed with respective weight on:① Consolidated operating profit (50%)② ROE (30%)③ Achievement of ESG management goals such asCO2 reduction, waste reduction and employee job
satisfaction (20%)

InternalDirectors

Outside(independent)
Directors

2 males
1 female14Disclaimer•

This presentation material is provided for a deeper understanding of ourcompany, and is not intended to be used as a solicitation for investment orother activities.

•This material has been prepared by our company based on the information
available at the time of the presentation. Actual results many differ
materially from those presented in this material due to various factors.

•Please utilize this material using you own judgment and responsibility.