July 31, 2012
Kureha Corporation
ITOCHU Corporation
Kuraray Co., Ltd.
Innovation Network Corporation of Japan

Agreement for Capital Participation in Kureha Battery Materials Japan
Kureha Corporation (“Kureha”), ITOCHU Corporation (“Itochu”), Kuraray Co., Ltd. (“Kuraray”)
and the Innovation Network Corporation of Japan (“INCJ”) have concluded an agreement
intended to further accelerate the growth of Kureha Battery Materials Japan Co., Ltd. (“KBMJ”),
Kureha’s subsidiary handling materials for lithium-ion batteries (“LiBs”). Under the agreement
between ITOCHU, Kuraray, the INCJ (the “Strategic Partners”) and Kureha, Kuraray and theINCJ will newly acquire equity stakes in KBMJ through participation in a third-party allocation,with the four companies together investing up to ¥20.0 billion in KBMJ.
1. Background to the Capital Participation
KBMJ was jointly established by Kureha and Itochu for the manufacture and sale ofCARBOTRON® P, a hard carbon anode material for LiBs, and for the sale of LiB binders. Thecompany commenced business operations on October 1, 2011. In December 2011, Kurehaand Kuraray agreed to jointly commercialize Biocarbotron, a hard carbon anode material forLiBs derived from plant material. In this process, Kureha and Itochu set to draw on eachother’s strengths to support KBMJ as a key player in the rapidly growing field of LiBs material.
To do so, the two companies determined that the addition of prestigious strategic partners
would further ensure that KBMJ is uniquely positioned to play a leadership role in thisexciting new industry.
The INCJ will participate as a shareholder in KBMJ for the purpose of providing fresh growth
capital for Kuraray and its innovative businesses. Through this process, KBMJ will
strengthen its financial position, and further accelerate growth.
2. Specifics of the Capital Participation and Use of Capital
KBMJ plans to finance up to approximately ¥14.5 billion over the next two years by issuingordinary shares to Itochu, Kuraray and the INCJ through a third-party allocation, as well as
non-voting preferred shares to the INCJ. It has also been agreed that at the same time as thethird-party allocation to the Strategic Partners, Kureha will underwrite up to approximately¥5.5 billion in ordinary shares in KBMJ. This will provide KBMJ with a combined capitalfinancing of up to approximately ¥20.0 billion.
The capital procured by KBMJ will mainly be allocated for capital expenditures to establish alarge-scale, stable global supply structure for CARBOTRON® P and Biocarbotron, hardcarbon anode materials for LiBs.

The following table shows the breakdown of the capital participation by the StrategicPartners and Kureha.

INCJ

ItochuKuraray
KurehaType of share
Ordinary shares and non-voting preferred shares
Ordinary shares
Ordinary shares
Total by Strategic Partners
Ordinary shares
TOTAL

Maximum amount (JPY)Approx. 10.0 billion
Approx. 2.2 billion
Approx. 2.2 billion
Approx. 14.5 billion
Approx. 5.5 billion
Approx. 20.0 billion

Total capital participation by the end of August 2012 is expected to be approximately ¥2.0billion.
3. KBMJ Operating Structure
The ratio of voting rights between Kureha and the Strategic Partners following the capital
participation is represented in the chart below. Kureha will retain the majority of voting rights
in KBMJ and will manage its business operations. Representatives from the StrategicPartners will be dispatched to KBMJ’s Board of Directors to establish an effective andtransparent management structure.

50.1%

20%

20%

9.9%

Ordinary shares andnon-voting preferred shares

Notes to Editors
About Kureha Battery Materials Japan (as of July 31, 2012)
Company name：
Headquarters：
Capital：Original shareholders：
Fiscal year ending：Representative：

Establishment：

Kureha Battery Materials Japan Co., Ltd.
3-3-2, Nihonbashi-Hamacho, Chuo-ku, Tokyo 103-8552
40 million yen
Kureha 70%, Itochu 30%
March
Hideo Nakatani, President & Chief Executive Officer (Senior VicePresident of KUREHA in charge of Battery Materials BusinessDivision)
April 5, 2011 (Operation started from October 1, 2011)

About the Innovation Network Corporation of Japan (INCJ)The Innovation Network Corporation of Japan (INCJ) was established by law in 2009. It aims tofoster the next generation of businesses through a process known as “open innovation”, meaning
encouraging technology and expertise to flow beyond the boundaries imposed by existingorganizational structures. It has the capacity to invest a total of ¥2 trillion and its mission is tosupport industrial renewal in Japan by investing in highly innovative businesses.
The INCJ is run by staff with a diverse range of experience in investment, technology andmanagement. Investments are thoroughly vetted by the INCJ’s Innovation Network Committee toensure they meet the standards laid out by law and established by the government
The INCJ has to date invested ¥400bn in a total of 27 projects. It conducts “hands-on” investment,
developing businesses with advanced underlying technologies through its intellectual property
fund, expanding the business activities of venture companies, reorganizing and consolidating
businesses with core technology strengths, and encouraging overseas expansion throughinternational acquisitions in such areas as environmental and energy-related electronics and IT,
biotechnology and life sciences, and in infrastructure, for example water supply.