Kureha Corporation (4023) Corporate presentation summary

Executive summary and key messages

• Operating profit and ROE missed targets due to PVDF slowdown and missed PGA sales in Advanced Materials.

• FY2025 saw ¥36.5 billion impairment losses, mainly from PVDF.

• Qualitative targets for research and technology development were largely achieved, with progress in new business candidates.

• FY2030 targets withdrawn; new FY2035 vision aims for a three-business portfolio and 12% ROE.

• Mid-term plan (FY2026–FY2028) focuses on laying groundwork for stable portfolio and 8% ROE.

Review of previous mid-term management plan

• Operating profit and ROE trended upward until FY2023, then declined due to Advanced Materials slowdown and impairments.

• Advanced Materials underperformed in both revenue and profit, mainly due to PVDF and PGA.

• ¥36.5 billion impairment losses recognized in FY2025, mostly from PVDF.

• PVDF sales for ESS applications began in FY2025, now 20% of PVDF sales.

• PGA exceeded 30% market share in key fields but missed sales targets due to supply constraints.

Non-financial and R&D initiatives

• Governance, digitalization, and employee engagement improved; DX certification achieved in 2025.

• Health management recognized for six consecutive years; CO2 and waste reduction targets met.

• New business creation accelerated via collaboration and increased patent filings.