1FY2016 3Q Highlights(in 100 million yen)

FY20153Q

FY2016
3Q

1,038934

Operating income

6393

Income before income tax
Net income attributable toowners of Kureha

6291

3973Net sales

FY15 3Q
FY16 3Q

500
400
300
200268220 222329 321
181

1000Specialty
Chemicals

3840
2001271833

FY15 3Q

42

FY16 3Q

8 6102 92 116 119 △ 20△ 40

AdvancedMaterials‐ Net sales down on lower volumes
mainly in Advanced Materials andChange
Specialty Chemicals‐10.0% ‐ Operating income improved due tothe absence of restructuring cost
47.5%accrued in prior‐year period, despite a
48.5%
sharp decline in Specialty Chemicals
85.4% ‐ Net income partly benefitted by lower
tax expenses

Specialty Construction OtherOperations
Plastics

81110△ 35Adjustment
Advanced Specialty Specialty Construction Other
Materials Chemicals Plastics
Operations

Note: In FY15 3Q results, the restructuring cost of ¥3.2 billion is included in ‘adjustment.’

2

FY2016 3Q Highlights(in 100 million yen)

FY2015 3Q

Advanced
Materials

Specialty
Chemicals

SpecialtyPlastics

Con‐struction

OtherOperations

Segment
TotalNet sales

268

2223291021161,038

Adjustment

1,038

Elimination

1

Other income

5

Other expenses Other expenses includes ¥3.2B restructuring cost

Operating income

123833418898Financial income Financial includes ¥0.7B dividend received‐359Income before income tax
Net income
attributable to Kureha

6239

FY2016 3Q

Advanced
Materials

Specialty
Chemicals

Specialty
Plastics

Con‐struction

OtherOperations

Segment
Total

Net sales

220

181

321

92119

934

Eliminationof noncurrent assets from ¥7.8B subsidy income)GroupTotal

934

71842

122611

Financial income Financial income includes ¥0.5B dividend received
Financial expenses Financial expenses includes ¥0.2B loss on currency transaction

Income before income tax
Net income
attributable to Kureha

Adjustment

0

Other income Other income includes ¥1B subsidy income (deducting ¥6.9B loss on reduction

Operating income

63

7

Financial expenses Financial expenses includes ¥0.4B loss on currency transaction

Other expenses

GroupTotal

84

1093

579173

3

Segment Performance
Advanced Materials(in 100 million yen)

FY20153Q

FY2016
3Q ChangeSales
Advanced plastics

167138‐17%

Carbon products4132‐24%

Other

21‐44%

Non‐consolidated sales total

210

171

‐19%

Subsidiaries sales total

237

175

‐26%

Adjustment‐179‐125‐‐

Kureha Group sales

268

220-18%

Kureha Group operating income

127-42%• Advanced plastics declined onlower PGA volumes in oil & gas
extraction market and stagnant
PPS sales, more than offsetting
growth of PVDF for lithium‐ion
battery applications• Carbon fiber and materials
operating loss narrowed on
improved cost efficiency despite
lower sales volumes

4

Segment Performance
Specialty Chemicals(in 100 million yen)

FY20153Q

FY2016
3Q Change

Sales
Agrochemicals
Pharmaceuticals
Industrial chemicals

5761
72

4545
63

‐21%
‐26%
‐11%

Non‐consolidated sales total

189

153

‐19%

Subsidiaries sales total

58

50

‐14%

Adjustment‐25‐22‐‐

Kureha Group sales

222

181

-19%

Kureha Group operating income

38

18-51%• Agrochemicals declined onlower volumes in fungicides• Pharmaceuticals negatively
affected by a decline in
Kremezin (therapeutic medicine
for chronic kidney failure)
volume and the impact ofNational Drug Price Revision• Industrial chemicals declined on
weak volumes in both organicand inorganic chemicals

5Segment Performance
Specialty Plastics(in 100 million yen)

Sales
Home products
Packaging materials

FY20153Q

FY2016
3Q Change

146
62

156
55

7%
‐10%

Non‐consolidated sales total
Packaging materials
overseas
Fiber products
Other

207

212

2%

97

82

‐15%

2754

28
51

1%
‐5%

Subsidiaries sales total

178

161

‐10%

Adjustment‐57‐52‐‐

Kureha Group sales329

321-2%

Kureha Group operating income

33

4226%

• Continued steady growth ofHome Products driven by home‐use wrap film ‘NEW Krewrap’• Packaging materials declined
due to stagnated sales of heat‐
shrink film

6Segment Performance(in 100 million yen)

FY20153Q

FY2016
3Q ChangeConstruction
Sales
Construction
Adjustment

161‐59143‐51‐11%‐‐

Kureha Group sales

102

92-9%

86-22%

Sales
Environmental engineering
Logistics
Hospital operations
Other
Subsidiaries sales total

69
68
27
13176

72
64
27
13177

5%
‐6%
2%2%
0%

Adjustment

‐60

‐58‐‐

Kureha Group sales

116

1193%

81134%

Kureha Group operating income• Construction declined due tofewer public construction
projects more than offsetting anincrease in private sector

Other Operations

Kureha Group operating income

Other Operations:• Steady growth of environmental
engineering business• Logistics operating income
improved on cost reduction
despite slower sales• Hospital operations turned
profitable with with improved
sales and cost efficiency

7

Balance Sheet(in 100 million yen)

AssetsMar. 312016

Dec. 31
Change2016

Cash and cash equivalents

67

66

‐1

Accounts and notes
receivable‐trade

309

291

‐18

Inventories
Other current assets
Current assets total

331
22729

353
31741

22
912

Property, plant andequipment

1,2501,170‐80

Intangible assets

1715‐2Investments and otherassets

403

437

34

Noncurrent assets total

1,669

1,622-47

Assets total

2,398

2,363-35

Liabilities andNet Assets

Mar. 312016

Dec. 31
Change2016

Accounts and notes
payable‐trade

198

201

3

Interest‐bearing debt

812

724

‐88Reserves
Other liabilities
Liabilities total

58
135
1,204

43128
1,096

‐16‐7-108

Capital stock
Capital surplus
Treasury stock
Retained earnings
Other equities
Minority interests
Net assets total

12594‐4595750
131,19412594‐451,014
63
15
1,267

0005713373

Liabilities andNet assets total

2,398

2,363-35

8

FY2016 Full-Year Outlook(in 100 million yen except per‐share values)

FY2015FY2016eChange

1,408

1,300

‐108 (‐8%)

Operating income7490

16 (22%)

Income before income tax

66

85

19 (29%)Net income attributable toowners of Kureha4965

16 (33%)

Dividend per share (yen)InterimEnd‐year

¥5.5
¥5.5

¥5.5
¥55.0 *Net sales• Sales likely to fall in all fivesegments, most sharply inSpecialty Chemicals• Operating income will improve
YOY due to the absence ofrestructuring cost and steady
growth of Specialty Plastics,
more than offsetting sharp
declines in Specialty Chemicals
and Construction*Based on a post‐consolidation common share basis,
effective October 1, 2016

Note:
Kureha revised its projection for FY2016 full‐year sales and earnings in November 2016. Whilethe 3Q earnings have exceeded this full‐ year projection, we will maintain the projectionunchanged as we expect to record other expenses, including losses on retirement ofnoncurrent assets, in the 4Q period.

9Key Indicators
FY2015
1Q‐3Q

FY2015Full year

FY2016
1Q‐3Q

FY2016
Full year*¥121.7¥120.6¥120.2¥112.7¥106.6¥116.5¥107.5¥110.0¥134.4¥131.8¥132.6¥127.7¥118.0¥122.7¥118.5 *Assumption for the exchange¥120.0 rates during 4Q FY2016:

¥19.3
¥18.4

¥18.9
¥17.4

¥15.9
¥16.8

¥16.1
¥16.5

FY2015
1Q‐3Q

FY2016
1Q‐3Q

Depreciation

7877

R&D expenses

3434

Exchange rates
JP¥/US$

Term average
Term end

JP¥/EUR€ Term average
Term end

JP¥/CH¥

Term average
Term end

Depreciation, R&D expenses(in 100 million yen)JP¥110/US$
JP¥120/EUR€
JP¥16.5/CH¥