Based on the changes in the business environment surrounding the Kureha Group, and aiming to raise Kureha’s value by growing sustainably in the future, we launched the Kureha Group Mid- to Long-Term Management Plan, Rolling Plan 2025, in fiscal 2024, the second year of our mid- to long-term management plan, Toward Creating a New Future (FY2023–2030). However, revenue and profit decreased in fiscal 2024, mainly due to sluggish growth in the electric vehicle market. To boost our earning capability, we must accelerate our three priority measures: reviving Kureha’s technology-driven focus, strengthening the management base, and synergism between company and employees.

Reviving Kureha’s technology-driven focus is essential for driving growth in each of our businesses. In our key business fields, namely Environment and Energy, Life, and Digital Communications, we are focusing resources into developing new products and cultivating new business while accelerating the development of differentiated products. Several new businesses have already begun to emerge. Moreover, we are making steady progress in shifting to a cost-competitive structure, building a production system for growth businesses, and researching technologies that can contribute to carbon neutrality. By considering markets, customers, and the challenges we face, I believe the Kureha Group will be able to further refine its technologies going forward.

One step toward strengthening the management base is increasing the effectiveness of Kureha’s Board of Directors. In an evaluation of the Board’s effectiveness, it became apparent that deliberations on important issues were not being sufficiently carried out. Therefore, revisions were made to ensure that important issues identified in advance by management are systematically and sufficiently deliberated. Another issue was promoting digitalization. To effectively and strategically implement this, we established a DX Implementation Committee in October 2024, with myself serving as the chair. We are reforming operations from management’s point of view.

Synergism between the company and employees is about ensuring that our management values people. Compared with our industry, results of our employee engagement surveys conducted since fiscal 2023 have indicated that Kureha’s employees are above average in enthusiasm about their jobs, but their understanding of and identification with the company’s objectives are only average, and even below average depending on the job category and age group. Therefore, to foster employees who want to work for Kureha and see what they can do, we have changed communication from a one-way style, to a two-way approach. By tackling those challenges and growing as a unified group, we can achieve our management goals.

For the Kureha Group, engagement with shareholders and all other stakeholders is highly important. While welcoming your valuable feedback, we are working to increase shareholder value and grow sustainably. We look forward to your continued support and understanding.

August 2025

Yutaka Kobayashi
President & Chief Executive Officer