Kureha : FY2022 3Q Results

FY2022 3Q Results

February 7, 2023

1

FY2022 3Q Earnings (1)

(in billions of yen)

	FY21	FY22	Change
	3Q	3Q	YOY
Revenue	123.1	149.0	25.9
(+21.0%)
Core operating profit	17.9	24.1	6.2
(+35.0%)
Operating profit	18.2	24.5	6.3
(+34.7%)
Profit before taxes	18.5	25.1	6.6
(+35.5%)
Profit attributable to	13.3	17.7	4.3
owners of Kureha Corp.	(+32.6%)

Vs. FY2021 3Q

• Revenue grew on sales expansion in Advanced Materials, particularly PVDF used as a binder material for lithium-ion batteries, and in Specialty Chemicals and Specialty Plastics
• Core operating profit increased due primarily to the expansion of Advanced Materials

Basic profit per share (¥)	¥682.48	¥904.69
[Foreign currency exchange rates]
¥/USD:	¥111.1	¥136.5
¥/EUR:	¥130.6	¥140.6
¥/CNY:	¥17.3	¥19.9

Note: Our FY2022 full-year earnings forecast remains unchanged as previously announced on November 9, 2022

FY2022 3Q Earnings (2)

Performance by Segment (vs. 3Q/FY21)

Revenue

66.1

45.0								35.336.5			3Q/FY21		3Q/FY22
					25.4
					20.6						8.5	13.714.1
													6.9
	Advanced		Specialty	Specialty Construction Other
	Materials		Chemicals	Plastics			Operations

2

Core operating profit

11.5						8.5	7.5		3Q/FY21		3Q/FY22
4.2											2.6
				2.2 2.2				0.5 0.4	2.5
Advanced	Specialty	Specialty Construction			Other
Materials	Chemicals	Plastics	Operations

Factors attributing to core operating profit

AM: Sales expansion across all product groups (advanced plastics, carbon products, other plastic products), higher profit primarily driven by PVDF in advanced plastics

SC: Higher raw material and energy costs offset by expansion of agrochemicals and industrial chemicals and higher prices

SP: Slower home products sales and higher raw material and energy costs more than offsetting improved packaging materials performance

CO: Fewer public and private construction projects

OO: Higher industrial waste treatment volumes

3

FY2022 Full-Year Financial Forecast

*As announced on November 9, 2022

(in billions of yen)

	FY21	FY22	Changes	FY22	Changes
	vs.
	vs.	Initial
	Results	Forecast	Initial
	FY21	forecast
			forecast
Revenue	168.3	190.0	21.7	180.0	10.0
(+12.9%)	(+5.6%)
Core operating	25.3	27.0	1.7	23.0	4.0
profit	(+6.7%)	(+17.4%)
Operating profit	20.1	27.0	6.9	22.0	5.0
(+34.0%)	(+22.7%)
Profit before taxes	20.4	28.0	7.6	22.0	6.0
(+37.3%)	(+27.3%)
Profit attributable to	14.2	20.0	5.8	16.0	4.0
owners of Kureha	(+41.2%)	(+25.0%)
Basic profit per	¥725.73	¥1024.72		¥819.79
share (¥)

Vs. FY2021

• Revenue growth led by Advanced Materials, Specialty Chemicals and Specialty Plastics, despite declines in Construction and Other operations
• Core operating profit to increase in Advanced Materials and Specialty Chemicals; decrease in Specialty Plastics, Construction and Other operations

Vs. Initial forecast

• Higher revenue and profit led primarily by PVDF, Agrochemicals and Specialty Plastics

[Currency exchange rates and sensitivity]

	FY21	FY22	1Q-2Q FY22	3Q-4Q FY22	Forex sensitivity
	Actual	Initial estimate	Actual	New estimate	*Impact of an one-yen depreciation
					on operating profit per 6 months
1USD=	¥112.4	¥120.0	¥134.0	¥135.0	An increase of ¥20 million
1EUR=	¥130.5	¥132.0	¥138.8	¥135.0	An increase of ¥20 million
1CNY=	¥17.5	¥18.5	¥19.9	¥19.5	An increase of ¥70 million

4

FY2022 Full-Year Financial Forecast

*As announced on November 9, 2022

Revenue & Operating Profit by Segment (vs. FY21)

(billion yen)

Revenue

(in billions of yen)

15.0 Core operating profit

87.5		FY21	Results
				FY22	Forecast

66.7

					44.8 45.0
	26.2	29.0							18.5	18.0
					12.2
										10.5

10.0

9.9

1.4 1.5

FY21 Results

FY22 Forecast

7.5

3.1 2.5

1.0 0.5

Advanced	Specialty	Specialty Construction	Other	Advanced	Specialty	Specialty Construction	Other
Materials	Chemicals	Plastics	Operations	Materials	Chemicals	Plastics	Operations

Factors affecting core operating profit

AM: Robust performances of PVDF (LiB binder) and carbon fiber furnace insulation materials

SC: Strong agrochemicals sales, pricing actions for industrial chemicals

SP: Slower home products sales partially offset by expansion of packaging materials

CO: Fewer high-margin construction projects, intensifying market competition

OO: Lower industrial waste treatment volumes, including low-level PCB wastes