Kureha Corporation Reports Fiscal 2014 Results
Tokyo, Japan – May 2014 – Kureha Corporation (“Kureha”), a leading global supplierof specialty chemicals and plastics, has reported continued increases in earnings forthe fiscal year ended March 31, 2015 (FY2014). On a consolidated basis, sales
increased by 1.4% year-on-year to ¥150.2 billion, while operating income was up by
22.3% to ¥14.6 billion. In addition, recurring income grew by 26.4% to ¥15.4 billion, andnet income recorded another year-on-year increase, up 24.9%, to ¥9.2 billion.
Kureha President and Chief Executive Officer, Yutaka Kobayashi, said, “Despite avolatile business environment, Kureha continued on its solid upward trend. While net
sales did not reach the forecasted figure for the fiscal year, we are pleased to reportthat operating income, recurring income and net income all exceeded the targets andreached the highest levels we have seen since the company began reporting
consolidated financial results in 1990. We are also delighted to bring our shareholders
a rise in earnings per share to 53.53 yen.”
Kobayashi added, “While one-time income related to a pharmaceutical sales contract
contributed to this result, the biggest factor is that our long-standing focusedinvestment into advanced materials finally bore fruit. This not only returned theAdvanced Materials segment to operating profit; it will also enable us to gradually build
a foundation for earnings that better balances our various businesses. We are also
clearly seeing the benefits of our efforts to pursue group-wide cost and productivity
improvements, develop global human resources, and overall enhance the ability of ourgroup to flexibly respond to the economic environment. Going forward, we remain
firmly committed to strengthening the competitiveness of our existing businesses whilesteadily cultivating and expanding new businesses, as set out in the Grow Globally II
management plan.”
Summary of Consolidated Full-year Results(¥ million, except where stated)
Sales
Operating income
Recurring income
Net income
Earnings per share (EPS) (¥)

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

March 2015
150,182
14,551
15,426
9,195
53.53

Change (%)
1.4
22.3
26.4
24.9
24.9

Page 1 of 8

Performance by Division
Consolidated Performance by Division(¥ 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 2014

March 2015

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

36,187438
35,535
7,941
46,5193,660
16,721
1,081
15,2181,789(360)
150,182
14,551March 2016
(Forecast)
43,5002100
33,5004,300
47,0004,600
15,000600
16,0001,400
0155,000
13,000

Advanced Materials Division
Major product areas: advanced plastics (PPS, PVDF, PGA), carbon materials
Advanced Materials division sales rose 10% year-on-year to ¥36.2 billion. The divisionalso returned to operating profit, a development driven by across-the-board demand
growth in the advanced plastics business and a slight demand recovery in carbon
materials for solar applications.
Advanced plastics: Demand growth across all product areas, recovery from loss
Advanced plastics saw increased demand in all of the key product areas including PPS
resin, particularly for use in the automotive sector; PVDF resin for use in lithium-ion
battery binders and for industrial use; and PGA for use in shale gas extraction
applications. As a result, the advanced plastics business was able to recover from theoperating loss recorded in the previous year.
Carbon materials: Slight recovery in demand in solar applications
In carbon materials, demand recovered slightly for insulation material used in siliconingot production for solar power applications and there was also an increase in sales ofcarbon fiber. However, due to increased costs related to the production of hard carbon

Page 2 of 8anode materials used in lithium-ion batteries, the operating loss for this businessremained at the same level as in the previous year.
Outlook: FY2015 division sales are forecast to increase by 20% to ¥43.5 billion, with
operating income making a drastic leap to ¥2.1 billion from ¥0.4 billion in FY2014, anincrease of 378%. A key factor behind this growth will be the continued positive
development of the shale gas market in the US, where Kureha will work with its partner
Magnum Oil Tools International to refine its business strategy for PGA for use in shale
gas extraction, in turn generating significant increases in sales and profit. Meanwhile,
sales of PPS for use in automotive applications will remain firm. In carbon materials,
Kureha foresees continued profitability improvements for heat insulation materials usedin the manufacturing of solar power equipment, while sales of hard carbon anodematerials used in lithium-ion batteries will remain stable.

Specialty Chemicals Division
Major product areas: industrial chemicals, agrochemicals, pharmaceuticals
Specialty Chemicals division sales fell slightly by 3% year-on-year to ¥35.5 billion from¥36.6 billion. However, the division continued to see healthy profit growth, with
operating income rising 8% to ¥7.9 billion primarily due to one-time income related to apharmaceutical sales contract.
Pharmaceuticals / agrochemicals: Extraordinary income balance fall in demand
Demand for the agricultural fungicide Metconazole fell in the North America region,
while government-mandated price revisions and growing use of generic drugs
impacted on sales of Kremezin, a therapeutic agent for chronic renal failure. However,despite a slight sales decrease in this business, one-time income associated with new
business contracts resulted in an increase in operating income.
Industrial chemicals: Continued sales and income increases across the board
Increases in sales and operating income were recorded for both organic and inorganic
chemicals.
Outlook: Specialty Chemicals division sales are projected to decrease slightly by 6%
in FY2015 to ¥33.5 billion, while operating income is forecast to fall 46% to ¥4.3 billion.
The main factors behind this downturn are found in the pharmaceuticals business. In
addition to the absence of one-time income associated with a new contract, Kureha
also foresees continued negative influence from generics on the sales of Kremezin.

Page 3 of 8

However, in industrial chemicals, Kureha expects to be able to maintain profitability by
responding flexibly and accurately to raw material price fluctuations and market
movements. Kureha will also be focusing on expanding sales volumes of Metconazole.

Specialty Plastics Division
Major product areas: food packaging materials, household packaging products
Specialty Plastics division sales increased by 3% from ¥45.3 billion to ¥46.5 billion,
while operating income decreased by 19% to ¥3.7 billion, mainly due to slower
performance in the consumer products business.
Consumer products: NEW Krewrap demand falls back after pre-tax hike spike
In consumer products, while sales of Seaguar fishing lines increased on steadydemand, sales of NEW Krewrap household wrapping film fell compared with theprevious period, when demand rose sharply prior to the consumption tax increase on
April 1, 2014. Cost increases also affected performance, ultimately leading to adecrease in both sales and operating income for this business.
Food packaging materials: Cost control and packaging machine sales generate
solid performance
Although sales of high-performance heat-shrinkable multilayer film declined, thebusiness as a whole saw increases in both sales and operating income. Key factors
behind this performance include continued cost control and increased sales of
packaging machines.
Outlook: FY2015 division sales are forecast to increase by 1% to ¥47.0 billion, while
operating income is projected to rebound by 26% to ¥4.6 billion. In food packaging
materials, while Kureha forecasts a slight sales decrease with anticipated fewer orders
for packaging machines, the company expects to continue to improve income by
expanding global sales of high-performance heat-shrinkable multilayer films. In
household products, while there will be an increase in depreciation costs related to the
new PVDC plant, Kureha foresees an increase in income due to factors including arebound in sales for NEW Krewrap and continued efforts to promote the product’s
added value to customers.

Page 4 of 8

Construction and Other Operations
Major product areas: construction, environmental engineering, transport/warehousing,and trading related businesses
Construction: Performance driven by earthquake-related reconstruction
Construction businesses saw a substantial increase in operating income due to anincreasing number of earthquake-related reconstruction projects, although thisperformance was partially offset by a decrease in both sales and operating income inthe engineering business. Sales fell slightly by 3% to ¥16.7 billion, and operating
income rose by 30% to ¥1.1 billion
Other Operations: Continued demand for industrial waste disposal
In the environmental engineering business, while sales decreased, operational
improvements as well as increasing demand for industrial waste treatment resulted in arise in operating income. The transportation/warehousing business saw a fall in bothsales and operating income. As a result, the overall division sales decreased 6% from
¥16.2 billion to ¥15.2 billion, while operating income reached ¥1.8 billion, a 10%
increase.
Outlook: FY2015 division sales for Construction business are projected to decline by
10% to ¥15 billion, while operating income is expected to fall by 45% to ¥0.6 billion. In
addition to a decline in post-earthquake reconstruction demand, higher labor andmaterial costs will negatively impact operating income.
Division sales for Other Operations are estimated to increase by 5% to ¥16 billion,
however operating income is projected to decrease by 22% to ¥1.4 billion due largely
to increased facility renovation costs. Kureha continues to focus on enhancing
profitability in industrial waste disposal businesses, including micro-PCB(polychlorinated biphenyls) treatment work.

Page 5 of 8

FY2015 Outlook(¥ million, except where stated)
March 2015
Sales
Operating income
Recurring income
Net income
Earnings per share (EPS) (¥)

150,182
14,551
15,426
9,195
53.53

March 2016
(Forecast)
155,000
13,00012,5008,000
46.57

Change(%)
3.2(10.7)(19.0)(13.0)(13.0)For FY2015, Kureha forecasts a 3.2% increase in consolidated sales to ¥155.0 billion;
operating income of ¥13.0 billion, down 10.7%; recurring income of ¥12.5 billion, down
19%; and net income of ¥8.0 billion, down 13%.
While sales are projected to rise, the figure falls short of the FY2015 target of ¥165
billion set out in Grow Globally II. Key reasons include projected falls in demand for
products related to solar power and lithium-ion batteries in the Advanced Materials
Segment, the continued impact of generic drugs on the pharmaceuticals business andincreased depreciation costs related to the new PVDC and PVDF plants. In addition,
Kureha foresees an extraordinary non-operating loss of ¥1.7 billion due to factors
including loss on retirement of fixed assets.
However, Kureha also projects continued strong performance in the PGA businessdriven by a revised business strategy, and improved performance in householdproducts, particularly as sales of New KREWRAP rebound from the fall seen after thedemand spike preceding the April 1, 2014 consumption tax rise. In addition, ongoinggroup-wide efforts to reduce costs are expected to make a positive ¥1.2 billion
contribution to operating income in the year.

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

Capital expenditure
Depreciation
R&D
Interest-bearing debt

March 2014

March 2015

16.5
9.1
4.5
77.2

17.6
8.3
5.0
86.6

March 2016
(forecast)
17.5
10.0
5.7
89.2

Page 6 of 8

During FY2014, capital expenditures for new and existing assets were reviewed in lightof the business environment and partly scaled down, amounting to ¥17.6 billion, an 1
billion increase from the year before. Major areas of investment included the new
PVDC plant and R&D facilities at the Iwaki Factory, which became operational in Q4 of
FY2014, along with maintenance and upgrading activities in order to further strengthen
operations and respond to future demand. For FY2015, we foresee capital expenditure
at a similar level.
Depreciation decreased from ¥9.1 billion to ¥8.3 billion in FY2014, partly as a result ofchanges to the period of depreciation for fixed assets.
R&D spending continued to increase in FY2014 to ¥5.0 billion, reflecting the criticalimportance Kureha places on continued investment in both near-term and long-term
development. We aim to further increase R&D spending in FY2015 to ¥5.7 billion.
Interest-bearing debt grew as expected in line with the expansion of capital expenditure,
increasing to ¥86.6 billion. For FY2015, interest-bearing debt is forecast to see a slightrise to ¥89.2 billion.

*****
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 2015

73,4298,726

75,9497,772

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

123,185
2,448
48,114
249,697

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

70,262
34,86658,81017,00019,770129,072

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

102,150
16,002
2,403
120,624
249,697

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 2015
150,182
107,714
27,916
14,551
2,339
1,464
15,426429
2,262
13,593
4,429
-32
9,195

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

Fiscal 2014 Results

May 15, 2015

1

Contents
1. FY2014 Full-Year Results• FY2014 Highlights• Segment Performance• Key Indicators• Extraordinary Income/Losses• Balance Sheets• Cash Flow

2
3
4-7
8
9
10
11

2. FY2015 Full-Year Forecasts• FY2015 Full-Year Outlook• Mid-Term Business Plan vs. FY2015 Outlook• Segment Outlook• Key Indicators• Cash Flow

12
13
14
15-18
19
20

3. Consolidated Companies

21-23

2

1. FY2014 Full-Year Results(April 1, 2014 – March 31, 2015)

3

FY2014 Highlights(in 100 million yen except per-share values)

FY2014FY2013% Change

Net Sales

1,502

1,481

1.4%

Operating income

146

119

22.3%

Recurring income

154

122

26.4%

Net income

92

74

24.9%

Total assets

2,497

2,245

11.2%

Net assets

1,206

1,062

13.6%

Earnings per share (yen)

53.53

42.87

25%

Net assets per share (yen)

687.8

604

14%

Equity ratio

47.3%

46.2%

--

12

11

1

22.4%

25.7%

--

Dividend per share (yen)Dividend ratio

4

Segment Performance
Advanced Materials
In 100 million yen
Kureha Sales

FY2014FY2013% Change

Carbon products

60

52

16%

Advanced plastics

202

171

18%

Other

5

1

489%

Carbon products (China)

19

9

110%

Battery materials

61

56

8%

Other

241

224

8%

-227

-184

--

Kureha Group Sales Total

362

328

10%

Kureha Group Operating Income Total

4

-26

---

Subsidiaries Sales

Consolidated adjustment

 Carbon products: Carbon insulation materials operating loss narrowed on improved
volume, but costs increased in hard carbon Li-battery anode materials
 Advanced plastics: Continued demand for PPS in automotive, PVDF in Li-battery, and PGA
in shale gas/oil fields

5Specialty Chemicals
In 100 million yen

FY2014

Kureha Sales

FY2013% Change

Industrial chemicals

106

98

8%

Agrochemicals

98

118

-17%

Pharmaceuticals

99

95

4%

Subsidiaries Sales

88

88

0%

Consolidated adjustment

-35

-32

---

Kureha Group Sales Total

355

366

-3%

Kureha Group Operating Income Total

79

73

8%

 Industrial chemicals: Increased profit on volume growth Agrochemicals: Slow demand for Metconazole fungicides in North America
 Pharmaceuticals: Slower sales affected by national drug price revisions and increased
competition from generic drugs, one-time income related to Kremezin (chronic kidney
failure treatment drug)

6Specialty Plastics
In 100 million yen
Kureha Sales

FY2014FY2013% Change

Packaging materials

118

99

20%

Consumer products

175

191

-8%

124

127

-3%

Other

148

130

14%

Consolidated adjustment

-100

-93

---

Kureha Group Sales Total

465

453

3%

Kureha Group Operating Income Total

37

45

-19%

Subsidiaries Sales Packaging materials (overseas) Packaging materials: Profit growth driven by packaging machinery despite sales decreasein heat shrink film
 Consumer products: Strong Seaguar fishing lines performance, but Krewrap film volume
declined due to demand fallout after the consumer tax hike in Japan7

Construction
In 100 million yen

FY2014

Subsidiaries Sales

Construction

FY2013% Change

257

250

2%

-89

-78

---

Kureha Group Sales Total

167

172

-3%

Kureha Group Operating Income Total

11

8

30%

Consolidated adjustment

 Increase in public construction projects related to post-earthquake reconstruction

Other Operations
In 100 million yen
Subsidiaries
Sales

FY2014FY2013% Change

Environmental engineering

104

107

-3%

Logistics, transportation

98

102

-4%

Trading

23

21

8%

Other

20

20

2%

-92

-88

---

Kureha Group Sales Total

152

162

-6%

Kureha Group Operating Income Total

18

16

10%

Consolidated adjustment

 Operating gains driven by environmental engineering (industrial waste treatment) business

8

Key Indicators( In 100 million yen)
FY2014FY2013% Change

Capital expenditure

176

165

7%

Depreciation

83

91

-9%

R&D expenses

50

45

10%

Interest-bearing debt

866

772

12%

Net interest expense

-0

-1

---

Exchange rate
Number of employees¥109.90/$1¥138.84/€1
4,123¥100.29/$1¥134.44/€1
4,080

--1%

9

Extraordinary Income/Losses( In 100 million yen)

Extraordinary
incomeExtraordinary
losses

FY2014FY2013

ChangeCompensation income

3.1

0.8

2.4

Gain on sales of investment securities

0.7

1.9

-1.2

Gain on sales of noncurrent assets

0.4

0.2

0.2

Subsidy income

--

4.8

-4.8

Others

0.1

0.2

-0.1

Total

4.3

7.9

-3.6

Loss on sales and retirement of noncurrent assets

10.6

11.8

-1.2

Loss on liquidation of subsidiaries

7.5

--

7.5

Loss on valuation of investments in capital

4.0

--

4.0

Loss on reduction of noncurrent assets

--

4.2

-4.2

Loss on debt forgiveness of subsidiaries and affiliates

--

3.0

-3.0

Impairment loss

--

1.3

-1.3

Loss on disaster

--

1.2

-1.2

Others

0.5

2.1

-1.6

Total

22.6

23.6

-1.0

10

Balance Sheets( In 100 million yen)March 312015

March 312014

ChangeAssetsCash and cash equivalents
Accounts and notes receivable-trade
Inventories
Other current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total

78
290
328
64
1,232
24
481
2,497

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

-10
-15
47
3
115
4
108
252

Liabilities
andNet assets

Accounts and notes payable-trade
Interest-bearing debt
Reserves
Other liabilities
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated comprehensive income
Subscription rights to shares
Minority interests
Total

138
866
35
252
125
100
842
-45
160
1
24
2,497

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

-27
93
1
40
0
0
59
-0
85
0
0
252

11

Cash Flow
FY2014Pre-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/decrease in cash and cash equivalents resulting fromfiscal year change of subsidiaries
Increase in cash and cash equivalents from newly consolidated
subsidiaries
Increase in cash and cash equivalents from consolidated
subsidiaries’ merger with unconsolidated subsidiaries
Cash and cash equivalents at end of year

FY2013
219
-63
-41
11
125
-188
50
4
-8
87

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

-2

--

--

1

0

--

78

87

12

2. FY2015 Full-Year Forecasts(April 1, 2015 – March 31, 2016)

13

FY2015 Full-Year Outlook
In 100 million yen

FY2015e

FY2014% Change

Net Sales

1,550

1,502

3.2%

Operating income

130

146

-10.7%

Recurring income

125

154

-19.0%Net income

8092-13.0%¥11¥12

Dividend per share (yen)Interim ¥5.5
Year-end ¥5.5

Interim ¥5.5
Year-end ¥5.5
Commemorative ¥1.0

Dividend payment ratio

23.6%

22.4%

 Marginal profitability to improve in PGA (Advanced Materials) and Krewrap (Specialty
Plastics) businesses
 Continuing cost control and savings
 Lack of pharmaceuticals-related onetime income Depreciation costs likely to increase with new PVDC and PVDF plants
 No foreign exchange translation gains/losses expected Extraordinary losses around ¥1.7B including losses on fixed asset retirements

Mid-term Business Plan (“GG-ll”)
vs. FY2015 Outlook

14(In 100 million yen)

Net sales
1,650

Operating income
150
1,550

130

 FY2015 sales outlook is ¥10 billion lower than the GG-ll mid-term business targets due to:• Slower growth in solar cell-related and LiB-related markets• Pharmaceuticals sales sliding due to generics• Limited growth expected in the environmental business FY2015 operating income outlook is ¥2 billion lower than the GG-ll targets despite PGA andHome Products businesses are expected to improve profit and nearly ¥2.8 billion cost savings

15

Segment Outlook
Advanced Materials
In 100 million yen
Kureha Sales

FY2015e

FY2014% Change

Carbon products

60

60

0%

Advanced plastics

266

202

32%

Other

4

5

-25%

Carbon products (China)

22

19

16%

Battery materials

78

61

28%

Other

290

242

20%

-285

-227

--

Kureha Group Sales Total

435

362

20%

Kureha Group Operating Income Total

21

4

378%

Subsidiaries Sales

Consolidated adjustment

 Demand for carbon products (carbon fiber insulation materials for solar cell manufacturingand Li-battery anode materials for hybrid electric vehicles) likely to remain at a FY2014 level In advanced plastics;- Significant growth in PGA sales prompted by expanding the value chain in shale gas fields- Continuing demand for PPS in automotive- PVDF profit to slide due to depreciation cost, despite volume growth for Li-battery application

16

Specialty Chemicals
In 100 million yen

FY2015eKureha Sales

FY2014% Change

Industrial chemicals

98

106

-8%

Agrochemicals

107

98

10%

Pharmaceuticals

75

99

-24%

Subsidiaries Sales

90

88

3%

Consolidated adjustment

-35

-35

--

Kureha Group Sales Total

335

355

-6%

Kureha Group Operating Income Total

43

79

-46%

 Industrial chemicals to secure profit by properly responding to market trends and fuel costs
 Demand for Metconazole fungicides expected to recover in North America
 Pharmaceuticals earnings to decline from a lack of one-time income and also morecompetition from generics

17Specialty Plastics
In 100 million yen
Kureha Sales

FY2015e

FY2014% Change

Packaging materials

92

118

-22%

Consumer products

198

175

13%

135

124

9%

Other

150

148

1%

Consolidated adjustment

-105

-100

---

Kureha Group Sales Total

470

465

1%

Kureha Group Operating Income Total

46

37

26%

Subsidiaries Sales Packaging materials (overseas) Packaging materials to secure profit on global sales expansion of heat-shrink multilayer
films and offset volume decline in packaging machinery NEW Krewrap likely to increase profit on stable demand and continual value promotion

18

Construction
In 100 million yen

FY2015e

Subsidiaries Sales

FY2014% Change

210

257

-18%

-60

-89

---

Kureha Group Sales Total

150

167

-10%

Kureha Group Operating Income Total

6

11

-45%

Construction

Consolidated adjustment

 Earthquake recovery-related projects expected to decrease

Other Operations
In 100 million yen

Subsidiaries
Sales

FY2015e

FY2014% Change

Environmental engineering

114

104

10%

Logistics, transportation

97

98

-1%

Trading

18

23

-20%

Other

16

20

-21%

-85

-92

---

Kureha Group Sales Total

160

152

5%

Kureha Group Operating Income Total

14

18

-22%

Consolidated adjustment

 Volume growth in high-margin PCB treatment services, but increasing cost related to facility
enhancement and renovation

19

Key Indicators( In 100 million yen)

FY2015e

FY2014% Change

Capital expenditure

175

176

0%

Depreciation

100

83

21%

R&D expenses

57

50

15%

Interest-bearing debt

892

866

3%

Net interest expense

-1

-0

---

Exchange rate

¥115/$1¥135/€1¥109.90/$1¥138.84/€1---

Number of Employees

4,213

4,123

2%

20

Cash Flow
FY2015ePre-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/decrease in cash and cash equivalents resulting fromfiscal year change of subsidiaries
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Increase in cash and cash equivalents from consolidated
subsidiaries’ merger with unconsolidated subsidiaries
Cash and cash equivalents at end of year

FY2014

208
-45
-28
17
152
-164
5
--7
78

219
-63
-41
11
125
-188
50
4
-8
87

--

-2

--

--

--

-0

71

78

21

3. Consolidated Companies

22

Sales and Assets
FY2014FY2013

ChangeNet sales Total assets Net sales Total assets Net sales Total assets
Kureha Corporation
Kureha Trading Group (2)Kureha Corporation
Kureha Trading Group (2)Kureha Battery Materials Japan Co. (2)Kureha Extech Co.
Kureha Extron Co.
Advanced
Kureha GmbH
Materials
Kureha America Group (4)*Kureha Chemicals Shanghai Co.
Kureha China 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 America Group (4)*Plastics Kureha Europe Group (4)*Kureha Vietnam Co.
Consolidated adjustments
Total

899
286
268
98
61
22
22
14
76
19
9
-227
362
303
88
-35
355
293
77
37
16
86
37
-82
465

1,930
132
--42
27
21
11
298
38
151
--------34
9
66
50
---

824
288
224
98
56
20
14
17
74
9
1
-185
328
311
88
-32
366
290
82
37
-94
33
-82
453

1,760
134
--51
25
16
11
289
32
105
--------31
-57
46
---

74
-3
44
0
5
2
8
-2
3
10
1
-42
34
-8
0
-3
-11
4
-4
-0
16
-7
4
0
12

170
-2
---9
1
5
-0
9
6
46
--------2
9
9
5
---

23

Sales and Assets
FY2014FY2013

ChangeNet sales Total assets Net sales Total assets Net sales Total assets
Kureha Nishiki Group (4)*Kureha Engineering Co.
Consolidation adjustments
Total
Kureha Ecology Management Co.
Kureha Special Laboratory Co.
Kureha Unyu Group (7)*Kureha Trading Co.
Other
Operations Kureha Service Co.
Kureha Staff Service Co.
Consolidation adjustments
Total[Total Number of Consolidated Subsidiaries]

218
39
-89
167
89
15
98
23
5
15
-92
152
[37]

114
25
--77
6
61
-10
6
---

184
66
-78
172
93
14
102
21
5
15
-88
162
[36]

96
36
--79
7
61
-10
6
---

33
-27
-11
-5
-4
1
-4
2
0
-0
-4
-9

17
-11
---2
-0
0
-1
0
---

Consolidation Total
Equitymethod Nangtong SKT New Material Co.
affiliates

1,502

2,497

1,481

2,245

21

252

38

--

35

--

3

--

Construction*Parenthesized numbers indicate the number of subsidiaries in the group
As of March 31, 2015, Kureha Corporation had 37 consolidated subsidiaries and one affiliated company
accounted for by the equity method, including a new consolidated subsidiary, Kureha Battery Materials
Shanghai Co., which was established in July 2014.

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