December 22, 2015
Kuraray Co., Ltd.
Notice Concerning the Merger of Subsidiary Bio Hard Carbon Co.,Ltd.
Kuraray Co., Ltd. (hereinafter “Kuraray”) hereby announces that it passed aresolution at its Board of Directors’ meeting held on December 22, 2015, tocarry out a merger aimed at absorbing Bio Hard Carbon Co., Ltd. (hereinafter“Bio Hard Carbon”), one of Kuraray’s wholly owned subsidiaries. Kurarayacquired all the shares of Bio Hard Carbon held by the two former parent
companies–Kuraray Chemical Co., Ltd. (a consolidated subsidiary of Kuraray)
and Kureha Battery Materials Japan Co., Ltd.–on December 21, 2015.
In addition, since this merger pertains to the absorption of a wholly
owned subsidiary, some details of the information disclosed below have beenomitted.
1. Purpose of the Merger
Kuraray will absorb Bio Hard Carbon, a company engaged in the manufactureof plant-based hard carbon anode materials, in order to further enhance thecentralization and efficiency of the Kuraray Group’s management resources.
2. Overview of the Merger(1) Schedule
The resolution of the merger at the Board of Directors’ meeting:
December 22, 2015The signing of the merger agreement: December 22, 2015
The effective date of the merger:
April 1, 2016 (scheduled)
Note: The merger will be carried out as a short-form merger by Kuraray inaccordance with the provisions of Article 796, Paragraph 2 of Japan’sCompanies Act. Simultaneously, the merger will be performed by Bio Hard
Carbon based on the stipulations for absorption-type mergers set out under
Article 784, Paragraph 1 of the same act. Therefore, no general meeting ofshareholders is required to gain respective approval for the merger agreement.
(2) Method of the Merger
Kuraray, the surviving company, will absorb Bio Hard Carbon, which will bedissolved as a result of the merger.

(3) Share Allocation in Accordance with Merger
Not applicable.
(4) Treatment of Absorbed Company’s Stock Acquisition Rights andConvertible Bonds with Stock Acquisition Rights
Not applicable.
3. Outline of Companies Involved in the Merger

1. Company name
2. Location
3. Representative’sname and title
4. Principal
businesses

Surviving company(As of June 30, 2015)
Kuraray Co., Ltd.
1621, Sakazu, Kurashiki
City, Okayama Prefecture
Masaaki Ito, Representative
Director and President
Manufacture and sale ofchemicals, resins, fibers andtextiles¥88,955 million
June 24, 1926

5. Capital
6. Dateofestablishment
7. Shares issued
354,863,603
8. Fiscal year-end
December 31
9. Major shareholders The Master Trust Bank ofand their holdings
Japan, Ltd. (Trust account):
6.95%
Japan Trustee Service
Bank, Ltd. (Trust account):
6.12%
10. Corporate performance and financial standing
Kuraray Co., Ltd.
(consolidated)
Fiscal year Ended December 31, 2014
Net assets¥481,826 million
Total assets¥691,538 million
Net assets per share¥1,354.21
Net sales¥411,408 million
Operating income¥40,298 million
Ordinary income¥40,084 million
Net income¥21,296 million
Net income per share¥60.77

Absorbed company(As of December 22, 2015)
Bio Hard Carbon Co., Ltd.
4342, Tsurumi, Bizen City,
Okayama Prefecture
Yasuhiro Yamamoto,
Representative Director andPresident
Manufacture of plant-based
hard carbon anode materials¥425 million
August 22, 2012
17,000December 31
Kuraray Co., Ltd.: 100%

Bio Hard Carbon Co., Ltd.
(non-consolidated)
Ended December 31, 2014
¥623 million¥1,800 million¥36,649.32―(¥171 million)(¥182 million)(¥182 million)(¥10,760.81)

4. The Status of the Surviving Company(1) Company name:
Kuraray Co., Ltd.
(2) Location of registered office:1621, Sakazu, Kurashiki City,
Okayama Prefecture(3) Representative’s name and title:
Masaaki Ito, Representative
Director and President(4) Principal businesses:
Manufacture and sale ofchemicals, resins, fibers andtextiles(5) Capital:¥88,955 million(6) Fiscal year-end:
December 31
5. Outlook
Kuraray expects the merger to have no material effect on its consolidated
performance.
For reference, please also see Kuraray’s press release entitled “Kuraray toDivest Its Shares in Kureha Battery Materials Japan, Terminating a Lithium
Ion Battery Business Joint Venture,” which was released on December 2, 2015
to discuss the reorganization of its operations related to plant-based hardcarbon anode materials.