Kuraray (3405) Investor presentation summary

Market overview and growth drivers

• Activated carbon is used for removing organic compounds from water, air, and other media via adsorption, with raw materials including coconut, bituminous coal, wood, and lignite.

• Key global markets include drinking water (35%), wastewater (20%), food & beverage (15%), air treatment (15%), and industrial processes (10%).

• Products support clean water, environmental remediation, air purification, food safety, and automotive electrification.

• PFAS, persistent synthetic chemicals, are widespread and require advanced treatment due to health risks at low concentrations.

• New U.S. regulations mandate strict PFAS limits in drinking water, driving demand for activated carbon solutions.

Regulatory impact and technology positioning

• U.S. EPA regulations require PFAS monitoring and treatment, with compliance expected by April 2029 and $10B in federal funding allocated.

• Granular activated carbon (GAC) is highlighted as the most cost-effective, sustainable, and versatile PFAS treatment technology.

• GAC offers multi-contaminant removal, low operating costs, and reactivation for PFAS destruction, outperforming ion exchange and reverse osmosis in several aspects.

• Drinking water treated with GAC in the U.S. is projected to rise from 10% in 2023 to 25–40% by 2030.

• Market value for PFAS treatment in U.S. drinking water is estimated at $1–2B by 2030, with activated carbon expected to capture 75% of this market.

Competitive strengths and expansion initiatives

• High-performance Filtrasorb GAC and AquaKnight equipment provide bundled solutions, with proven PFAS removal and destruction.

• Over 25 years of PFAS treatment experience and a large field service team support customer optimization.

• New U.S. production line and recent acquisitions (Bloomfield, Sprint) expand capacity and equipment offerings.

• Capacity expansion includes a new 25,000 MT GAC line operational since Q1 2024.

• Anticipated growth in industrial, remediation, food & beverage, and global markets, with stricter regulations in Europe and Asia.