Kureha Corporation Reports Fiscal 2013 Results
Tokyo, Japan – May 2014 – Kureha Corporation (“Kureha”), a leading global supplierof specialty chemicals and plastics, has reported strong earnings for the fiscal year
ended March 31, 2014 (FY2013). On a consolidated basis, sales increased by 13.5%
year-on-year to ¥148.1 billion, while operating income was up by 40.7% to ¥11.9 billion.
In addition, recurring income grew by 85.8% to ¥12.2 billion, with net income again
increasing sharply from the previous year, up 129.3%, to ¥7.37 billion.
Kureha President and Chief Executive Officer, Yutaka Kobayashi, said, “Kureha has
been taking steps in recent years to adjust its corporate strategy, to ensure that theCompany is able to quickly adapt to the changing business environment and ispositioned on a path to global growth. We are very pleased to report the positive upturnin results for FY2013, with consolidated sales and operating income both ahead of theforecasts made in the revised “Grow Globally II” business plan issued in November
2013. This puts us on the right track to meet the target of ¥165 billion in sales by
FY2015.”
Kobayashi added, “Although Kureha, like many Japanese companies, may havebenefited from the weakening of the yen, this is certainly not the only factor contributing
to the strong results. Business performance across a number of segments, including
materials for automotive applications, agricultural chemicals, household products andenvironmental-related, all recorded sales growth. The business environment in certain
segments, such as process materials used in solar cell manufacturing, does remainchallenging, and in such areas it is critical that we continue to assess the market andadjust strategy accordingly. Across the Company, we continue efforts to further
integrate cost and productivity improvements and to develop global human resources.
In summary, we remain firmly committed to the strategy set out in the Grow Globally II
plan, and believe we can see a clear path ahead.”

Summary of Consolidated Full-year Results(¥ million, except where stated)
Sales
Operating income
Recurring income
Net income
Earnings per share (EPS) (¥)

March 2013
130,550
8,458
6,570
3,212
18.71

March 2014
148,124
11,902
12,207
7,365
42.87

Change (%)
13.5
40.7
85.8
129.3
229

Page 1 of 8

Consolidated Performance by Segment(¥ million, except where stated)
Division
Advanced materials
Specialty chemicals
Specialty plastics
Construction
Other operations(Cancellations)
Total

Sales
Operating income/loss
Sales
Operating income/loss
Sales
Operating income/loss
Sales
Operating income/loss
Sales
Operating income/loss
Operating income/loss
Sales
Operating income

March 2013

March 2014

27,650(2,131)
32,8336,136
40,9002,988
14,967
1,038
14,197613(186)
130,550
8,458

32,815(2,625)36,615
7,341
45,291
4,519
17,238833
16,163
1,621
212
148,124
11,902

March 2015
(Forecast)
36,000(1,300)40,0009,200
48,5003,900
14,000300
16,5001,400
0155,000
13,500

Performance by Division
Advanced Materials Division
Major product areas: advanced plastics (PPS, PVDF, PGA), carbon materials
Advanced Materials division sales rose 19% year-on-year to ¥32.8 billion. However, thedivision reported an operating loss of ¥2.6 billion, largely due to continued weak
demand for carbon fiber as an insulating material for solar-powered equipment.
Advanced plastics: Operating loss remains flat on sales growth
Sales of advanced plastics recorded low double-digit growth on the back of risingdemand for PPS resin, particularly in the automotive sector, and for PVDF resin for use
in lithium-ion battery binders for automotive and other commercial applications. There
was also an increase in orders for PGA for use in shale gas extraction applications.
However, earnings were mostly offset by increased operation costs.
Carbon materials: Continuing weak demand in solar applications
Carbon materials sales rose slightly, due to rising sales of carbon materials for use as
an anode material in lithium-ion batteries for hybrid-electric vehicles. However carbon
fiber demand weakened for use as an insulating material for solar-powered equipment,
resulting in a year-on-year widening of the operating loss.

Page 2 of 8

Outlook: FY2014 divisional sales are forecast to increase by 10% to ¥36.0 billion, with
operating losses halved from ¥2.6 billion to ¥1.3 billion. Sales of advanced plastics areprojected to grow further, with Kureha anticipating that the positive growth in demandfor PPS resin for automotive applications will continue. With the start of operations at a
new plant in Changshu, China, sales of PVDF resin are projected to expand, withfurther increase in demand for use in lithium-ion battery binders for automotive andother commercial applications. In addition, sales of PGA molded parts are also
expected to grow for applications in the oil and gas industry based on the businessalliance with Magnum Oil Tools International announced in December 2013. Sales ofcarbon materials are projected to increase significantly on demand growth for anodematerials with the expansion of the market for hybrid electric vehicles. In addition,
recovery in the solar-powered equipment sector is anticipated in the second half of theyear, bringing additional demand for use as an insulating material.

Specialty Chemicals Division
Major product areas: industrial chemicals, agrochemicals, pharmaceuticals
Specialty Chemicals division sales were up 12% year-on-year to ¥36.6 billion from
¥32.8 billion. The division continued to see healthy profit growth, with operating income
rising 20% to ¥7.3 billion. This was primarily due to the growth of export sales in the
agrochemicals business, supported by the depreciating yen.
Pharmaceuticals: Sales volumes continue to increase
Sales of pharmaceutical products decreased slightly due to the absence of settlement
funds from a patent lawsuit received in the previous period. However, Kremezin, atherapeutic agent for chronic renal failure continued to see increasing sales volumes.
Industrial chemicals: Continued sales increase
Industrial chemicals recorded moderate sales growth. However, the rise in raw
materials and fuel costs continued to negatively impact organic chemicals, which
resulted in a decline in operating income.
Agrochemicals: Volume growth and a weaker yen drive profit increase
Sales of agrochemical products Metconazole, an agricultural fungicide, and Ipconazole,a seed treatment fungicide, rose on strong demand in the North America region. The
weaker yen further contributed to positive growth in profits.

Page 3 of 8

Outlook: Specialty Chemicals divisional sales are projected to grow by a further 9% in
FY2014 to ¥40.0 billion, while operating income is forecast to rise by 26% to ¥9.2 billion.
Sales of industrial chemicals are projected to record a marginal increase, while Kureha
works to maximize revenue through price adjustments to reflect rising raw materials
and fuel prices. In the area of agrochemicals products, research and development
costs are expected to increase, but Kureha anticipates that this will be offset by anincrease in Metconazole volumes. Sales of pharmaceutical products are projected toincrease with one-time benefits associated with business contracts as well as Kremezin
sales growth, offsetting the impact of price revisions under the National Health
Insurance system.

Specialty Plastics Division
Major product areas: food packaging materials, household packaging products
Specialty Plastics division sales increased by 11% from ¥40.9 billion to ¥45.3 billion,
while operating income for the division rose sharply by 51% to ¥4.5 billion, on the backof a demand hike preceding the April 1 consumption tax rise in Japan and improved
profitability across major product lines.
Consumer products: NEW Krewrap drives continued sales growth
Sales of household products continued to grow, rising 9% in comparison with theprevious year. This was due to ongoing efforts to improve profitability across thedivision as a whole, as well as optimized pricing for NEW Krewrap, a key product. NEW
Krewrap also saw a spike in sales ahead of the April 1 consumption tax increase inJapan.
Food packaging materials: Improved sales and profitability
Sales of food packaging materials grew slightly on a consolidated basis, andprofitability improved on the back of continued cost control efforts and enhanced
earnings performance in Japan, Vietnam and European markets.
Outlook: FY2014 divisional sales are forecast to increase by 7% to ¥48.5 billion,
although operating income is projected to decrease by 13% to ¥3.9 billion. Kureha
projects a modest increase in sales of food packaging materials, as the company
continues to expand global sales of high-performance films alongside ongoing efforts toimprove profitability. Sales of packaging materials and Seaguar fishing lines byPage 4 of 8

consolidated subsidiaries in the United States, amounting to approximately ¥1.5 billion,
which had previously been recorded by the Advanced Materials division, will betransferred to the Specialty Plastics division from FY2014. In household products,
Kureha will continue to optimize prices for NEW Krewrap, but slow sales are expected
as demand normalizes after the spike seen at the end of FY2013 prior to theconsumption tax increase. In addition, the PVDC plant now under construction at the
Iwaki Factory is scheduled to come online and begin production in 4Q of FY2014.

Construction and Other Operations divisions
Major product areas: construction, environmental engineering, transport/warehousing,and trading related businesses
Construction sales rose by 15% from ¥15.0 billion to ¥17.2 billion, with operating
income decreasing by 20% to ¥0.8 billion. Sales of Other Operations increased 14%
from ¥14.2 billion to ¥16.2 billion, with operating income of ¥1.6 billion, a 165%
increase.
Construction: Rising demand but also rising costs
While construction businesses saw higher demand due to an increasing number ofearthquake reconstruction projects, higher labor expenses and material costs led to adecrease in operating income.
Environmental engineering: Continued demand for industrial waste disposal
Environmental engineering sales rose significantly, due to operational improvements aswell as increasing demand for industrial waste treatment.
Outlook: FY2014 divisional sales for Construction businesses are projected to decline
by 19% to ¥14.0 billion, while operating income is expected to fall by 63% to ¥3.0 billion.
Although post-earthquake reconstruction demand is expected to continue, a downturnin plant construction as well as higher labor and materials costs will have a negative
impact on operating income. Divisional sales for Other Operations are estimated toincrease by 2% to ¥16.5 billion, although operating income is projected to decrease by
13% to ¥14 billion. With disaster-related industrial waste disposal projects coming to anend, Kureha will shift its focus to increasing profitability via high-value operations suchas micro-PCB (polychlorinated biphenyls) treatment work.

Page 5 of 8

FY2014 Outlook(¥ million, except where stated)
March 2014
Sales
Operating income
Recurring income
Net income
Earnings per share (EPS) (¥)

148,124
11,902
12,207
7,365
42.87

March 2015
(Forecast)
155,000
13,50013,0008,000
46.57

Change
(%)
4.6
13.4
6.5
8.6
8.6

For FY2014, Kureha forecasts a 4.6% increase in consolidated sales to ¥155.0 billion;
operating income of ¥13.5 billion, up 13.4%; recurring income of ¥13.0 billion, up 6.5%;
and net income of ¥8.0 billion, up 8.6%.
Growth in sales and operating income is expected to be supported by steady growth in
the battery materials business, as well as continued expansion of the PGA, carbon
materials and pharmaceuticals businesses. This is to be supplemented by further cost
control and savings measures, primarily in relation to the sourcing of raw materials.
Global development of markets and operations will continue, in line with the strategy
set out in the medium-term management plan.

Page 6 of 8

Capex, Depreciation, R&D and Debt(¥ billion)
March 2013

March 2014

20.0
8.9
4.4
68.4

16.5
9.1
4.6
77.2

Capital expenditure
Depreciation
R&D
Interest-bearing debt

March 2015
(forecast)
26.5
9.1
5.3
88.5

Capital expenditure declined during FY2013 to ¥16.5 billion. However, in line with thepositive forecast and the Grow Globally II plan, Kureha intends to significantly increase
capital expenditure during the coming year to ¥26.5 billion, with major areas ofinvestment including the new PVDC plant and R&D facilities at the Iwaki Factory, alongwith maintenance and upgrading activities, in order to further strengthen operations
and respond to future demand.
Depreciation increased from ¥8.9 billion to ¥9.1 billion in FY2013, and is projected tomaintain this level in FY2014, partly as a result of changes to the period of depreciation
for fixed assets.
R&D spending grew slightly to ¥4.5 billion and will be increased to ¥5.3 billion during
FY2014, reflecting the critical importance of continued investment in both near-termand long-term development.
Interest-bearing debt increased to ¥77.2 billion and is projected to grow to ¥88.5 billion,
in line with the expansion of capital expenditure.

*****
For further information, please contact:
KUREHA CORPORATION
Public & Investor Relations Department Tel. 03-3249-4651

Page 7 of 8

<Appendix>
Condensed Consolidated Balance Sheets( ¥ millions)
31 March 2014

31 March 2013

73,4298,726

68,2109,954

111,684
2,034
37,311
224,459

99,444
1,463
36,166205,284

57,037
18,606
61,231
20,00021,619118,268

52,87718,08856,19520,00015,359109,073

96,2797,481
2,378
106,190
224,459

90,5803,303
2,264
96,211
205,284

March 2014
148,124
109,034
27,187
11,902
2,177
1,872
12,207785
2,363
10,629
3,023
240
7,365

March 2013
130,550
96,78225,309
8,458
1,648
3,536
6,570
550
1,654
5,466
2,297
-44
3,212

AssetsCurrent assets
Cash and cash equivalents
Fixed assets
Tangible assets
Intangible assets
Investments and other assets
Total Assets
Liabilities
Current liabilities
Short-term borrowings
Fixed liabilities
Corporate bonds
Long-term borrowings
Total Liabilities
Net Assets
Shareholders’ equity
Reevaluation and conversion differences, etc.
Minority interest
Total Net Assets
Total Liabilities and Net Assets

Condensed Consolidated Statement of Income( ¥ millions)
Sales
Cost of goods soldSelling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Recurring income
Extraordinary gains
Extraordinary losses
Income before income taxes
Taxes and adjustments
Minority interest
Net income

Page 8 of 8

Results for the Year
ended March 31, 2014

May 16, 2014

Contents
1. FY2013 Results• Financial Highlights• Consolidated Net Sales and Operating Income by Segment• Analysis of Recurring Income• Breakdown of Extraordinary Income/Losses• Key Indicators• Balance Sheets• Cash Flow

2
3
4~7
8
9
10
11
12

2. FY2014 Forecasts• Estimated Figures• Consolidated Net Sales and Operating Income by Segment• Key Indicators• Cash Flow

13
14
15~18
19
20

3. Consolidated Companies

21-23

2

1. FY2013 Results(April 1, 2013 – March 31, 2014)

3

Financial Highlights
 Net sales increased 13% to ¥148 billion on volume growth in all business segments• Strong performance in automotive, agrochemicals and environment businesses• Home products sales surged before tax hike in Japan A 129% rise in net income, to ¥7.4 billion• Favorable currency effects by weakened Japanese yen• Lower tax obligations: Special disaster-zone tax, R&D stimulus measures
FY2012% Increase/Decrease

FY2013

Consolidated

NonConsolidated

Ratio

Consolidated

NonConsolidated

Ratio

Consolidated

NonConsolidated

Net Sales

1,306

738

1.8

1,481

824

1.8

13%

12%

Operating income

85

73

1.2

119

87

1.4

41%

19%

Recurring income

66

75

0.9

122

94

1.3

86%

24%

Net income

32

41

0.8

74

57

1.3

129%

41%

Earnings per share(yen)

18.71 yen23.64 yen

0.8

42.87 yen33.21 yen

1.3

129%

40%

Net assets per share(yen)

546.69yen

518.93yen

1.1

604 yen541.82
yen

1.1

10%

4%

( Unit: 100 million yen)

Dividend per share
(yen)

¥10
(interim ¥5, year end ¥5)¥11(interim ¥5, year end ¥6)

Consolidated Net Sales andOperating Income by Segment

4

Advanced Materials( Unit: 100 million yen)

FY2013

Carbon products

44

52

19%

Advanced plastics

137

171

25%

4

1

- 80%

Total

185

224

21%

Consolidated subsidiaries

221

289

31%

Consolidated adjustments

- 129

- 184

---

Total

277

328

19%

- 21

- 26

---

KurehaOthersConsolidated
net sales

FY2012% Increase/
Decrease

Consolidated operating income

Sales up 19%, but operating loss widened due to sagging solar cell industry
 Carbon Products sales grew on demand recovery in LiB anode materials but declined
significantly in solar cell markets, resulting in larger operating loss Steady demand growth in PPS for automotive, PGA for shale gas/oil field applications and
PVDF for lithium-ion batteries used in vehicles and electric products. Advanced Plastics
earnings offset by increased operational costConsolidated Net Sales andOperating Income by Segment

5

Specialty Chemicals( Unit: 100 million yen)

FY2013

Industrial chemicals

94

98

4%

Agrochemicals

83

118

42%

Pharmaceuticals

98

95

- 4%

Total

275

311

13%

Consolidated subsidiaries

83

88

6%

Consolidated adjustments

- 29

- 32

---

Total

328

366

12%

61

73

20%

KurehaConsolidated
net sales

FY2012% Increase/
Decrease

Consolidated operating income

Agrochemicals leading segment growth; sales up 13%, operating income up 20%
 Lower Industrial Chemicals operating income due to higher raw materials and fuel costs
 Continued volume growth in fungicides (Metconazole, Ipconazole), favorable currency
 Pharmaceuticals (chronic kidney disease agent Kremezin) volume increase but lack of proceedsfrom pharmaceutical patent lawsuit settlement

Consolidated Net Sales andOperating Income by Segment

6

Specialty Plastics( Unit: 100 million yen)

FY2013

Food packaging

79

76

- 3%

Household products

176

191

9%

Others

23

23

- 2%

Total

278

290

4%

Consolidated subsidiaries

215

257

19%

Consolidated adjustments

- 84

- 94

---

Total

409

453

11%

30

45

51%

KurehaConsolidated
net sales

FY2012% Increase/
Decrease

Consolidated operating income

Solid sales growth, operating earnings improved 51%
 Cost control and improved earnings for Food packaging business, including operations inJapan, Vietnam and Europe Household products sales and earnings increased on rush demand before tax hike in Japan

Consolidated Net Sales andOperating Income by Segment
Construction
Consolidated
net sales( Unit: 100 million yen)

FY2012

7% Increase/
Decrease

FY2013

Construction business

247

250

1%

Consolidated adjustments

- 98

- 78

---

Total

150

172

15%

10

8

- 20%

Consolidated operating income

 Disaster-related construction work increased but lower operating income due to higher
materials and labor costs

Other Operations

Consolidated
net sales

FY2012% Increase/
Decrease

FY2013

Environmental engineering

88

107

21%

Logistics & warehousing

103

102

- 1%

Trading

23

21

- 10%

Other businesses

21

20

- 4%

Consolidated adjustments

- 94

- 88

---

Total

142

162

14%

6

16

165%

Consolidated operating income

 Continued growth in Environmental Engineering, particularly industrial waste treatment
businesses

8Analysis of Recurring Income
Consolidated Recurring Income( Unit: 100 million yen)

FY2012FY2013

ChangeKureha Corporation

75.3

93.6

18.3

Consolidated subsidiaries

- 1.3

36.2

37.5

Equity-method affiliates

2.8

3.3

0.5

Consolidation adjustments- 5.5- 11.0- 5.5

Consolidated recurring income total

65.7

122.1

56.4
( Unit: 100 million yen)

Reasons for earnings increase/decrease
Reasons for increase

KurehaCorporation

Increased sales volume
Increased unit sales priceDecreased general and administrative costs
Decreased direct selling costs
Decreased other non-operating expenses

Amount46
20
4
1
4

Reasons for decrease
Absence of proceeds frompharmaceutical patent settlement
Increased unit price of fuels and raw
materials
Increased manufacturing fixed costs
Differing inventory levels
Other

75

Consolidated
subsidiaries

Domestic Advanced Materials business
Overseas Advanced Materials business
Domestic Specialty Plastics business
Overseas Specialty Plastics business
Other businesses

3
17
1
9
10
40

Amount
- 10
- 15
-2
- 17
- 13
- 57

Construction business

Total

18.3

-2

-2

37.5

Breakdown of Extraordinary
Income/Losses
FY2012FY2013

ChangeSubsidy income

3.1

4.8

1.7

Compensation for damage

1.5

0.8

- 0.7

Gain on sales of investment securities

0.0

1.9

1.9

Gain on sales of noncurrent assets

0.1

0.2

0.1

Others

0.8

0.2

- 0.6

Total

5.5

7.9

2.5

Loss on sales and retirement of noncurrent assets

8.1

11.8

3.7

Provision for environmental measures

2.6

---

- 2.6

Loss on reduction of noncurrent investment

1.5

4.2

2.8

Loss on debt write-offs for subsidiaries and affiliates

---

3.0

3.0

Impairment loss

---

1.3

1.3

Loss on disaster

---

1.2

1.2

Others

4.3

2.1

- 2.3

Total

16.5

23.6

7.1

( Unit: 100 million yen)

Extraordinary
incomeExtraordinary
losses9

10

Key Indicators( Unit: 100 million yen)

FY2012% Increase/
Decrease

FY2013

Capital expenditure

200

165

- 18%

Depreciation

89

91

2%

R&D expenses

44

45

3%

Interest-bearing debt

684

772

13%

Net interest expense

-2

-1

---

Exchange rate
# Employees¥82.98/US$1¥107.00/€1
4,046¥100.29/US$1¥134.44/€1
4,080

1%

11

Balance Sheets
Assets( Unit: 100 million yen)
Cash and cash equivalents
Accounts and notes receivable-trade
Inventories
Other current assets
Sub total
Property, plant and equipment
Intangible assets
Investments and other assets
Sub total
Total

Liabilities and net assets
Accounts and notes payable-trade
Interest-bearing debt
Reserves
Other liabilities
Sub total
Common stock
Capital reserves
Retained earnings
Treasury stock, at cost
Valuation and translation adjustment
Share warrant
Minority interests
Sub total
Total

As of March 31, 2013

As of March 31, 2014

Change

100
275
253
55
682
994
15
362
1,371
2,053

87
304
281
62
734
1,117
20
373
1,510
2,245

- 12
30
28
7
52
122
6
11
140
192

159
684
37
210
1,091
125
100
726
- 45
33
1
23
962
2,053

165
772
34
212
1,183
125
100
783
- 45
75
1
24
1,062
2,245

5
88
-3
2
92
0
-0
57
0
42
-0
1
100
192

12

Cash Flow( Unit: 100 million yen)

Pre-depreciation profit
Increase/decrease in assets and liabilities
Cash flow from
Payments of corporation tax
operating activities
Other-net
Total
Cash flow from investing activities
Cash flow from financing activities
Effect of exchange rate changes on cash and cash equivalents
Increase/decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents at end of year

As of
March 31, 2013

As ofMarch 31, 2014

143
- 25
- 12
-4
102
- 196
102
2
11
89

199
- 38
- 30
8
141
- 204
47
4
- 13
100

---

1

100

87

13

2. FY2014 Forecasts(April 1, 2014 – March 31, 2015)

14

Estimated Figures
FY2013

FY2014% Increase/Decrease

Consolidated

NonConsolidated

Ratio
(%)

Consolidated

NonConsolidated

Ratio
(%)

Consolidated

NonConsolidated

Net Sales

1,481

824

1.8

1,550

890

1.7

4.6%

8.0%

Operating income

119

87

1.4

135

100

1.4

13.4%

14.8%

Recurring income

122

94

1.3

130

105

1.2

6.5%

12.2%

Net income

74

57

1.3

80

65

1.2

8.6%

14.0%

( Unit: 100 million yen)

Dividend per share
(yen)

¥11
(interim ¥5, year end ¥6)¥11(interim ¥5.5, year end ¥5.5)

 Modest increase in sales and operating income• Steady growth in battery materials, PGA, carbon fiber and pharmaceuticals• Cost control and savings (mainly raw materials)• Increased costs for R&D, overhead, safety measures, construction businesses Depreciation costs to be at FY2013 levels
 Lower non-operating income from foreign exchange Extraordinary losses expected to increase by ¥200M to total ¥1.8B largely from loss on fixed
asset retirements

Consolidated Net Sales andOperating Income by Segment

15

Advanced Materials( Unit: 100 million yen)

% Increase/
Decrease

FY2014

Carbon products

52

70

35%

Advanced plastics

171

174

2%

1

1

0%

Total

224

245

9%

Consolidated subsidiaries

289

360

25%

Consolidated adjustments

- 184

- 245

---

Total

328

360

10%

- 26

- 13

---

KurehaOthersConsolidated
net sales

FY2013

Consolidated operating income

Steady sales growth, reducing operating loss by half Carbon products: LiB anode materials growth expected on increasing hybrid electric vehicles,
Insulation materials used for manufacturing solar cells likely to recover after 3rd quarter Advanced plastics: Continuing demand for PPS in automotive; new PVDF plant starting
operation in China with expected demand growth in LiB binders of vehicles and electric
products; PGA molded parts sales expected to increase in shale gas/oil extraction throughbusiness alliance with Magnum Oil Tools

Consolidated Net Sales andOperating Income by Segment

16

Specialty Chemicals( Unit: 100 million yen)

% Increase/
Decrease

FY2014

Industrial chemicals

98

99

1%

Agrochemicals

118

124

5%

Pharmaceuticals

95

122

28%

Total

311

345

11%

Consolidated subsidiaries

88

89

1%

Consolidated adjustments

- 32

- 34

---

Total

366

400

9%

73

92

26%

KurehaConsolidated
net sales

FY2013

Consolidated operating income

Sales up moderately, operating earnings improved substantially Industrial Chemicals: Profit to be secured by transferring materials cost increase to selling price Agrochemicals: Steady volume growth in Metconazole fungicide, R&D expenses to increase Pharmaceuticals: Continuing volume growth in Kremezin (agent for chronic kidney disease)offsetting negative effects of NHI price revision

Consolidated Net Sales andOperating Income by Segment

17

Specialty Plastics( Unit: 100 million yen)

% Increase/
Decrease

FY2014

Food packaging

76

84

11%

Household products

191

182

- 5%

Others

21

34

62%

Total

290

300

3%

Consolidated subsidiaries

257

285

11%

Consolidated adjustments

- 94

- 100

---

Total

453

485

7%

45

39

- 13%

KurehaConsolidated
net sales

FY2013

Consolidated operating income

Sales increase modestly, operating earnings slide Food Packaging: Volume growth in global markets, improved profitability
 Household Products: Slower sales for NEW Krewrap after pre-tax hike demand New PVDC plant starting operation from 4th quarter*Specialty Plastics will include food packaging and fishing lines sales (approx. ¥1.5B)
generated by US subsidiaries from FY2014 (formally recorded in Advanced Materials)

Consolidated Net Sales andOperating Income by Segment
FY201318% Increase/
Decrease

FY2014

Construction( Unit: 100 million yen)

Consolidated
net sales

Construction business

250

210

- 16%

Consolidated adjustments

- 78

- 70

---

Total

172

140

- 19%

8

3

- 63%

Consolidated operating income Decreased sales and operating earnings: Decreasing plant construction and rise inmaterials and labor costs

Other Operations

Consolidated
net sales

Environmental engineering

107

107

0%

Logistics & warehousing

102

103

1%

Trading

21

23

10%

Other businesses

20

20

0%

Consolidated adjustments

- 88

- 88

---

Total

162

165

2%

16

14

- 13%

Consolidated operating income

 Flat sales and improved profits: Public quake-related waste management jobs to be terminated,focusing on high-earning businesses such as low-level PCB treatment

19

Key Indicators( Unit: 100 million yen)

FY2013% Increase/
Decrease

FY2014

Capital expenditure

165

265

61%

Depreciation

91

91

0%

R&D expenses

46

53

15%

Interest-bearing debt

772

885

15%

Net interest expense

-1

-2

---

4,215

3%

Exchange rate

¥100.29/US$1¥134.44/€1# Employees

4,080¥100/US$1¥135/€1

20

Cash Flow
As of
March 31, 2014

As ofMarch 31, 2015

Pre-depreciation profit

199

203

Increase/decrease in assets and liabilities

- 38

- 19

Payments of corporation tax

- 30

- 32

Other-net

8

16

141

167

Cash flow from investing activities

- 204

- 282

Cash flow from financing activities

47

93

Effect of exchange rate changes on cash and cash equivalents

40Increase/decrease in cash and cash equivalents

- 13

- 22

Cash and cash equivalents at beginning of year

100

87

Increase in cash and cash equivalents from newly consolidated
subsidiary

10Cash and cash equivalents at end of year87

65

( Unit: 100 million yen)

Cash flow fromoperating activities

Total

21

3. Consolidated Companies

22

Consolidated Companies( Unit: 100 million yen)
Kureha Corporation
Kureha Trading Group (2)Kureha Corporation
Kureha Trading Group (2)Kureha Battery Materials Japan Co.
Kureha Extech Co.
Extron Japan Co.
Advanced Kureha GmbH
Materials Kureha America Group (4)Kureha Chemicals Shanghai Co.
Kureha (China) Investment Group(3)
Consolidation adjustments
Total
Kureha Corporation
Specialty Kureha Trading Co.
Chemicals Consolidation adjustments
Total
Kureha Corporation
Kureha Trading Co.
Kureha Gohsen Co.
Specialty
Kureha Europe Group (4)Plastics
Kureha Vietnam Co.
Consolidated adjustments
Total

FY2012FY2013

Net sales

Total assets

738
275
185
91
41
16
13
17
34
9

1,665
136
----48
25
15
9
246
25

1
- 129
277
275
83
- 29
328
278
79
36
73
27
- 84
409

Net sales

Increase/Decrease

Total assets

Net sales

Total assets

824
288
224
98
56
20
14
17
74
9

1,760
134
----51
25
16
11
289
32

86
13
39
7
15
4
1
0
40
0

95
-3
----4
1
1
3
44
8

61

1

105

1

44

----------------32
46
41
-----

- 185
328
311
88
- 32
366
290
82
37
94
33
- 82
453

----------------31
57
46
-----

- 55
52
36
5
-3
38
12
3
1
20
6
2
44

-----------------0
11
5
-----

23

Consolidated Companies
FY2012( Unit: 100 million yen)

Net sales
190
57
- 98
150
75
13
103
23
5
16
- 94
142
1,306

Total assets
92
34----768
63--8
6----2,053

FY2013
Net sales
184
66
- 78
172
93
14
102
21
5
15
- 88
162
1,481

Total assets
9636----79761--10
6----2,245

Increase/Decrease
Net sales

Total assets-6
Kureha Nishiki Group (4)9Construct- Kureha Engineering Co.
ion
Consolidation adjustments
20
Total
23
Kureha Ecology Management Co.
18
Kureha Special Laboratory Co.
1
Kureha Unyu Group (7)-2-2Other Kureha Trading Co.
0
Operations Kureha Service Co.
Kureha Staff Service Co.
-1
Consolidation adjustments
6
Total
20
Consolidation Total
176
Equitymethod Nangtong SKT New Material Co.
30
--35
--5
affiliates
Note: Parenthesized number indicates the number of subsidiaries of the company contributing to segment performance

5
2
----3
-1
-2
--2
-0
----192

As at March 31, 2014, Kureha Corporation had 36 consolidated subsidiaries (37 in FY2012) and one affiliate accounted for by theequity method (2 in FY2012), following the changes below:- Kureha Battery Materials Japan Co. acquired and merged its two subsidiaries- A subsidiary of Kureha (China) Investment Co). has been newly consolidated- Bio Hard Carbon Co. has been changed to an affiliate not accounted for by the equity method---

Disclaimer
1. These materials are supplied to provide a deeper understanding of ourcompany, and are not intended to as a solicitation for investment or otheractions
2. These materials were prepared by our company based on the information
available at this point in time, however actual performance may produce
results that differ from the plan, due to a variety of factors
3. Please utilize these materials using you own judgment and responsibility