Driving Innovation and Reform with a P (passion), S (speed), C (commitment) Mindset.

Kureha Group Overview

To date, the Kureha Group has grown up alongside society, creating specialty chemical products useful in people's lives and the environment based on the innovative technical capabilities it has been developing since its establishment.

Nowadays, society requires companies to utilize their strengths and provide solutions to a variety of social problems ranging from global warming to SDGs. Our business environment poses numerous difficult challenges in the form of global economic change, responding to environmental problems, and rapid technological innovation. Kureha's goal is to overcome these challenges to develop and provide differentiated products by responding to these changes with speed and precision, making society more sustainable and achieving corporate growth in the process.

Two years stretched Mid-Term Management Plan

Toward this end, in fiscal 2016 we launched our three-year mid-term management plan, entitled Kureha's Challenge 2018. Fiscal 2018 was the plan's final year.

In the first year of the plan, fiscal 2016, we fell considerably short of our goals, weathering numerous setbacks from the outset. However, fiscal 2018 saw marked growth in priority products due to the strong sense of commitment shown by all Kureha Group employees and to the efforts they made.

Yet many challenges still remain. Among the key measures set forth in the mid-term management plan, profitability remains elusive for the PGA business, and we are not yet in a position to announce new businesses. We are also still on the way to reinforcing our business base.

In light of these circumstances, I have decided to extend the mid-term management plan for another two years. The stretched mid-term management plan will conclude in fiscal 2020. The plan lays out the following management goals: (1) expand the PGA business and generate earnings, (2) strengthen the PVDF business for further expansion, (3) optimize the business models for existing businesses, (4) explore and develop new businesses in Japan and overseas, and (5) strengthen management foundations. The overall goal will be to promptly address issues remaining from the original mid-term manage-ment plan and solidify the foundation for future expansion.

Promoting CSR Management

I feel that the Kureha Group's stakeholders have come to value the Group's contribution to society in terms of not only our business performance but also the base that supports such performance and the value of the company's existence.

Through its businesses, the Kureha Group is tirelessly working to solve the social problems we all face in areas such as the environment, energy, and daily life. We will continue giving back to society by leveraging the strengths of the Group and providing products and services that benefit society.

At the same time, as a company whose business involves mainly the manufacture and sale of chemical products, we have an obligation to show regard for people and the environment across our entire supply chain. We must also be fully aware of the weight of that obligation in our community outreach efforts.

In response to the growing emphasis being placed on addressing ESG (environmental, social, and governance) issues, we will be advanc-ing our CSR management throughout the entire Kureha Group.

Lastly, it will be the efforts of all Kureha Group employees that will undergird these initiatives and bring to them to fruition. By moving beyond our conventional mode of operation and making us into a corporate group where everyone contributes innovative ideas, I am confident that the Kureha Group will achieve sustainable growth.

This year, I will again seek to follow our slogan of Passion, Speed, and Commitment, and lead all Kureha Group employees forward. While effecting a change of mindset among our employees and reforming our corporate culture, my mission—even in these tumultuous times—will be to enhance our presence as a technology-oriented company, create new value, and become a high value-added company that continually contributes to society. I look forward to your continued understanding and support.

October 2019

President & Chief Exective Officer y.kobayashi