In April 2023, the Kureha Group launched its mid- to long-term management plan, Toward Creating a New Future (FY2023-2030), with the aim of both improving medium- to long-term corporate value and contributing to a sustainable society.
Fiscal 2023, the first year of the plan, was much more challenging from a performance standpoint, ending much lower than expected with lower revenue and profits, because the polyvinylidene fluoride (PVDF) business for automotive lithium-ion battery binders, which had been positioned as the main growth driver, stagnated due to a temporary slowdown in the growth of the electric vehicle market. Therefore, looking ahead to fiscal 2025, we formulated the Rolling Plan 2025, a mid- to long-term management plan incorporating expansion of existing businesses, capital policy, and capital investment, and announced it in May 2024.
The electrification of automobiles is a global movement that holds the key to bringing about a carbon-neutral society, and the EV market continues to be a growing market, so we have decided to expand our Iwaki Plant PVDF manufacturing facilities. We will work to further expand our PVDF business and contribute to the realization of a carbon-neutral society through our business.
In our existing businesses as well, such as polyglycolic acid (PGA), household products, and agrochemicals, we will face the markets from the perspective of social value and aim to maximize the value of those businesses.

To bring about medium- and long-term improvement of corporate value and contribute to a sustainable society, it is essential to revitalize the company as a technology-driven company, strengthen the management foundation, and work for synergy between the company and employees. We have had many discussions about these within the company, set them as priority measures, and are implementing them.

• To revitalize the company as a technology-driven company, we are working to strengthen the governance, organization, and capabilities of the people in our technology divisions, as well as working to create new products and strengthen our production technology capabilities in the fields of environment and energy, life, and information and communication.
• To strengthen our management foundation, we optimized the business portfolio, including withdrawal from the multi-layer (ML) film business in the commercial-use food packaging materials business, and strengthening and streamlining of the structure through reorganizations within the Group. We will continue to evaluate the profitability of each business using ROIC as the indicator and proceed with improving our business structure and raise the profitability of the entire Group.
• To understand the issues we face as we seek to create synergy between the company and our employees, we conducted an engagement survey and town hall meetings with our internal directors and employees. Hearing the thoughts of our employees directly from them has provided us with many insights. We will continue to create a company where employees can demonstrate their abilities with vitality and job satisfaction.

I am committed to leading our Group to produce results that will enable our stakeholders, including our shareholders and each and every employee, to really experience the growth of our Group and to become a company that is indispensable to society.
I would like to ask for your continued understanding and support.

August 2024

Yutaka Kobayashi
President & Chief Executive Officer