Kureha Corporation Reports Interim Results
Period April – September 2014
Tokyo, Japan, November 2014 – Kureha Corporation (“Kureha”), a leading global
supplier of specialty chemicals and plastics, has reported earnings for the half-year
period ended September 30, 2014. On a consolidated basis, sales rose 8.5% to¥73,449 million year-on-year (YoY) while operating income climbed 18.7% to ¥5,756
million. Recurring income increased by 14.8% YoY to ¥6,039 million. The solid
performance resulted in a 25.1 % YoY increase in net income to ¥4,382 million as well
as a rise in earnings per share by 5.11 yen to 25.51 yen.
Across Kureha’s business divisions, the trend was generally one of stronger
performance, with only Specialty Chemicals failing to improve operating income due togovernment-mandated drug price revisions impacting the performance ofpharmaceuticals. Positive factors include the depreciating yen, which generated foreignexchange adjustments that further benefitted operating income, and a reduction inlosses on the retirement of fixed assets, which together with a lower corporate tax
burden contributed to lifting net income.
The Advanced Materials division also recorded a strongly improved performance,
which enabled a significant reduction in this division’s operating loss. Looking long-term,
Kureha now sees a course for making Advanced Materials a pillar of the company’s
growth.
Yutaka Kobayashi, President and Chief Executive Officer, said, “We are pleased todeliver these positive first-half results to our shareholders. I am confident that thefigures show that we are right to focus on cultivating niche markets where we canpresent an unrivalled product offering, while at the same time enhancing our global
competitiveness by reducing costs and promoting operational efficiency.”“We remain committed to following the path set out under the Grow Globally II mediumterm business plan launched in fiscal 2012. We will continue to pursue growth as atruly global company and to steadily cultivate new businesses, while also investing in
R&D to plant the seeds for the next generation of technologies and materials.”

Summary of consolidated half year results

Sales
Operating income
Recurring income
Net income
Earnings per share (EPS) (¥)

Sept. 2014
73,449
5,756
6,039
4,382
25.51

(¥ million, except where stated)
Sept. 2013
Change (%)
67,723
8.5
4,850
18.7
5,258
14.8
3,504
25.1
20.40
---

Page 1 of 7

Update on the Grow Globally II medium-term business plan
Kureha remains focused on pursuing the strategy set out in its 2012-2015 mediumterm business plan, Grow Globally II, including prioritizing growth areas such aslithium-ion batteries and PGA (polyglycolic acid), a unique polymer that Kureha was
first in the world to develop and which has gained a strong reputation for its applicationin shale gas extraction. In addition, Kureha is continuing its efforts to accelerate global
growth by steadily cultivating and expanding new businesses, and to step up
investment in R&D. To achieve these objectives, an important priority will continue tobe developing human resources that have the skills and outlook necessary to enable
the company to thrive on the global stage.
The plan was reviewed in 2013 due to the fast-changing business environment. For thecurrent year, the 2015 targets remain unchanged at consolidated sales of ¥165.0 billion
and operating income of ¥15.0 billion.
Kureha has outlined a clear roadmap to achieve these targets and enhance its ability torespond swiftly and flexibly to changes in the business environment. Efforts to secure a
rapid return on investment in the Advanced Materials division bore fruit during the firsthalf of fiscal year 2014, with a significant reduction in the division’s operating loss. The
overall performance also indicates the company is on track with its strategy to reduce
costs and enhance profitability across all existing businesses.
Kureha will also work to develop technologies using its strengths in innovative R&D,
while seeking to acquire and create entirely new technologies that will enable thecompany to meet future needs.

Consolidated Interim Performance(¥ million, except where stated)
Sept. 2014
Sept. 2013
ChangeDivision
Advanced materials
Specialty chemicals
Specialty plastics
Construction related
Other operations

Total

Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
Adjustments

18,168-398
17,7793,259
22,981
2,220
7,361
369
7,158
531
-226

15,967-1,362
17,342
3,473
20,522
2,047
6,492
128
7,398
443
120

2,200
964
436
-213
2,459
173
869
241
-239
87
346

Sales
Operating income

73,4495,756

67,723
4,850

5,725
906

Page 2 of 7

Performance by Division
Advanced Materials Division
Major product areas: advanced plastics (PPS, PVDF, PGA), carbon materials
For the half-year period, the Advanced Materials Division saw increases in both sales
and income. Sales increased by 14% YoY to ¥18.2 billion from ¥16.0 billion. The
operating loss narrowed significantly from ¥1.4 billion to ¥0.4 billion YoY.
Carbon products’ performance strengthens
In carbon products, sales rose 43% to ¥4.3 billion on the back of solid sales for hardcarbon anode materials used in lithium-ion batteries and recovering demand for heatinsulation materials used in the manufacturing of solar power equipment.
Favorable sales growth for advanced plastics
Sales of advanced plastics rose 19% to ¥9.6 billion. PPS resin used in automotive
applications and PVDF for use in binders for lithium-ion batteries and PGA for use in
shale gas extraction all saw growth in sales and income.
Outlook: Divisional sales for the full-year are projected to be ¥36.0 billion, up slightly
from ¥32.8 billion, with operating losses of ¥1.1 billion. In carbon products, demand forheat insulation materials for solar power equipment is expected to continue to recover.
Advanced plastics are also expected to continue to improve, with firm performance
forecast for PPS resin used in automotive applications as well as for PDVF, both as abinder for lithium-ion batteries and for general industrial applications. From December
2014, Kureha will commence shipments of PVDF from a new plant at a subsidiary in
China. For PGA used in shale gas extraction, sales are expected to increase as aresult of the alliance with US company Magnum Oil Tools International.

Specialty Chemicals Division
Major product areas – industrial chemicals, agrochemicals, pharmaceuticals
The Specialty Chemicals Division recorded sales of ¥17.8 billion, an increase of 3%
YoY, and operating income of ¥3.3 billion, a decline of 6% from the corresponding
period in the previous year. Segment earnings decreased due to weak performance bypharmaceuticals, which were significantly affected by government-mandated drug pricerevisions.
Industrial chemicals see improved profitability
Sales of industrial chemicals rose 12% to ¥5.5 billion while operating income also
increased following price revisions and stronger unit sales.
Agrochemicals sales and income rise
Stronger unit sales and a depreciating yen led sales of agrochemicals to expand by 8%
to ¥5.2 billion, with operating income also increasing.
Pharmaceuticals sluggish following drug price revisions
Pharmaceutical sales fell 8% to ¥4.6 billion, with operating income also decreasing.
Kremezin, a therapeutic agent for chronic kidney disease, and Krestin, an anticancer

Page 3 of 7

agent, both saw decreased sales and income due to the effect of governmentmandated drug price revisions.
Outlook: Divisional sales for the full fiscal year are projected to grow from ¥36.6 billion
to ¥38.5 billion, up 5%. Operating income will also improve, rising from ¥7.3 billion to¥8.7 billion. In industrial chemicals, it will be necessary to continue to effectively
manage the price rises to raw materials to ensure stable profits. In agrochemicals,
sales of the agricultural fungicide Metoconazole are likely to remain at the same level
as in the previous fiscal year. In pharmaceuticals, Kremezin is expected to see atemporary increase in sales due to contract-related income, offsetting a loss caused bygovernment-mandated downward price revisions and increasing competition fromgeneric drugs.

Specialty Plastics Division
Major product areas –food packaging materials, household products
Sales continued to improve, rising 12% to ¥23.0 billion from ¥20.5 billion. Operating
income was up 9% from ¥2.0 billion to ¥2.2 billion on the back of strong growth incommercial-use packaging materials and packaging machines.
Commercial-use packaging materials perform strongly
Sales of commercial-use packaging materials increased by 18% to ¥11.6 billion, driven
by sales of heat-shrinkable film and the Kureha Auto Packer (KAP) automated fillingand clipping machine. Operating income also increased.
Household-use packaging materials retreat
Sales of household-use packaging materials rose prior to the April 1 increase inJapan’s consumption tax due to frontloaded demand, but subsided over the following
quarter. Overall for the first half, sales decreased 1% to ¥9.1 billion. Operating income
also decreased.
Outlook: For the full fiscal year, divisional sales are expected to continue increasingfrom ¥45.3 billion to ¥48.5 billion, up 7.0%, while operating income is projected todecrease 7%, from ¥4.5 billion to ¥4.2 billion. However, it should be noted that theoperating income figure is an upward revision from the original forecast of ¥3.9 billion,
prompted by the depreciating yen positively impacting the performance of Kureha Auto
Packer (KAP) machines and price adjustments improving the profitability of householduse packaging materials.
Overall, the profitability of the division is expected to continue to improve with ongoing
global sales of heat-shrinkable film and Kureha Auto Packer (KAP) machines.
In household-use packaging materials, Kureha will continue to promote the value of
New Krewrap. However, sales are expected to continue to be slow in the second half ofthe year due to the residual effects of the April 1 consumer tax increase.

Page 4 of 7

Construction Related / Other Operations
Major product areas – construction, environment, logistics, trading related businesses
Rising sales and income in construction related businesses
The first half of the fiscal year saw increases in both sales and income on the back of
an increase in official reconstruction projects connected to the Great East Japan
Earthquake of March 2011 as well as in private construction projects. Constructionrelated businesses as a whole saw a 13% increase in sales from ¥6.5 billion to ¥7.4
billion, while operating income rose sharply by 189% from ¥0.1 billion to ¥0.4 billion.
Other operations see sales decrease but income rise
In other operations, although transportation and warehousing-related operations weresluggish, continued sales growth in industrial waste disposal services resulted in bothsales and operating income exceeding targets. Overall, sales decreased by 3% to ¥7.2
billion while operating income rose by 20% to ¥0.5 billion.
Outlook: Construction related businesses will see continued demand for earthquakerelated reconstruction, but rising wage and material costs will affect profitability. Sales
are projected to decrease 10% YoY to ¥15.5 billion, while operating income will fall
38% to ¥0.5 billion.
In other operations, a lower administrative burden is expected in the industrial waste
treatment business. Kureha is also focusing on the management of low-concentration
PCB waste as a business with potential for significant sales growth and profitability.
Sales are forecast to rise slightly to ¥16.5 billion, while operating income will fall 13% to¥1.4 billion.

Consolidated capital expenditure, depreciation and R&D

Capital expenditure
Depreciation
R&D
Interest-bearing debt

Sept. 2014

Sept. 2013

9.2
3.9
2.3
84.5

6.5
4.5
2.1
73.9

(¥ billion)
March 2015
(forecasts)
21.3
8.6
5.3
86.2

Capital expenditure during the half-year period increased from ¥6.5 billion to ¥9.2
billion. The company expects to spend ¥21.3 billion for the full year, a significant
increase from ¥16.5 billion in fiscal year 2013.
R&D expenditure rose slightly to ¥2.3 billion. The allocation for the full fiscal year is
projected to be ¥5.3 billion.
Interest-bearing debt has increased from ¥73.9 billion to ¥84.5 billion and is projected
to reach ¥86.2 billion for the full fiscal year.

Page 5 of 7

Outlook for the full year

Sales
Operating income
Recurring income
Net income
Earnings per share (EPS) (¥)

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

Division
Advanced materials
Specialty chemicals
Specialty plastics
Construction related
Other operations

Total

Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
Sales
Operating income
Adjustments
Sales
Operating income(¥ million, except where stated)
March 2014
Change (%)
148,124
11,902
12,207
7,365
42.87

4.6
13.4
6.5
8.6
8.6

(¥ million, except where stated)
March 2015 March 2014 Change(Forecasts)(%)
36,00032,81510-1,100-2,625--38,500
36,615
5
8,700
7,341
19
48,50045,291
7
4,200
4,519
-7
15,50017,238
-10
500
833
-38
16,50016,163
2
1,400
1,621
-13
-200
212
--155,000
148,124
4.6
13,50011,902
13.4

Kureha expects performance during the second half of the fiscal year 2014 to continue
the positive trajectory. Overall sales for the fiscal year 2014 are forecast to improve to¥155.0 billion, up 4.6%, and operating income is expected to grow 13.4% to ¥13.5
billion YoY. Recurring income is expected to rise by 6.5% to ¥13.0 billion. Net income
will rise 8.6% to ¥8.0 billion for the full year.

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

Page 6 of 7

Condensed interim balance sheets
As of 30 September 2014 and 2013

AssetsCurrent assets
Cash and cash equivalents
Fixed assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total Assets
Liabilities and Net Assets
Current liabilities
Short-term borrowings
Fixed liabilities
Corporate bonds
Long-term borrowings
Total Liabilities
Net Assets
Shareholders’ equity
Minority interest
Total Net Assets
Total Liabilities and Net Assets

Sept. 2014

¥ million
Sept. 201375,125
7,303
160,559
117,365
1,929
41,264
235,684

67,7896,824
145,013105,270
1,606
38,136
212,803

72,12523,56153,591
10,00022,968125,716

51,547
21,16058,54720,00017,718110,095

98,281
2,321
109,968
235,684

93,255
2,081
102,707
212,803

Sept. 2014
73,44954,221
13,471
5,756
1,113
830
6,039
122
178
5,982
1,636
4,382

¥ million
Sept. 2013
67,72349,896
12,977
4,850
1,384
976
5,258
328
460
5,126
1,677
3,504

Condensed interim income statement
As of 30 September 2014 and 2013

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 minority interest adjustments
Net income

Page 7 of 7

Fiscal 2014 Interim Results(Period April 1 – September 30, 2014)

November 14, 2014

1

Contents
1. FY2014 Half-Year Results• FH2014 1H Highlights• Segment Performance• 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 Full-Year Forecasts• FY2014 Full-Year Outlook• Segment Outlook• Key Indicators• Cash Flow

13
14
15~18
19
20

3. Consolidated Companies

21-23

2

1. FY2014 Half-Year Results(April 1 – September 30, 2014)

3

FY2014 1H Highlights

 Operating income increased 18% vs. FY2013 1H
 Strong performance in advanced plastics, agrochemicals, packaging machineryand construction businesses Negative effect of national drug price revisions on pharmaceuticals
 Net income up 25%
 Recorded less losses on retirement of fixed assets
 Lower corporation tax rate
(in 100 million yen except per-share values)

FY2014 1H

FY2013 1H% Change

Net Sales

734.5

677.2

8.5%

Operating income

57.6

48.5

18.7%

Recurring income

60.4

52.6

14.8%

Net income

43.8

35.0

25.1%

Earnings per share (yen)

25.51

20.40

25.0%

Net assets per share (yen)626.28585.477.0%

Dividend per share (yen)

5.5

5.0

10.0%

4

Segment Performance
Advanced Materials
In 100 million yen
Kureha Sales

FY2014 1H

FY2013 1H% Change

Carbon products

32

25

30%

Advanced plastics

96

81

19%

Other

3

1

359%

Carbon products (China)

11

5

143%

Battery materials

31

25

25%

Other

114

100

14%

-105

-76

--

Kureha Group Sales Total

182

160

14%

Kureha Group Operating Income Total

-4

-14

---

Subsidiaries Sales

Consolidated adjustment

 Demand for carbon fiber insulation started recovering in the solar cell market
 Steady performance of Li-battery anode materials
 Advanced plastics volume gains in automotive (PPS), Li-battery (PVDF) and shale gas/oil
extraction (PGA) applications

5

Specialty Chemicals
In 100 million yen

FY2014 1H

Kureha Sales

FY2013 1H% Change

Industrial chemicals

55

49

12%

Agrochemicals

52

48

8%

Pharmaceuticals

46

50

-8%

Subsidiaries Sales

44

43

3%

Consolidated adjustment

-18

-16

---

Kureha Group Sales Total

178

173

3%

Kureha Group Operating Income Total

33

35

-6%

 Industrial chemicals profit margins improved on higher price Increased volume export of agricultural fungicide (Metoconazole), positive currency effect Pharmaceuticals (Kremezin, Krestin) negatively affected by national drug price revisions

6

Specialty Plastics
In 100 million yen
Kureha Sales

FY2014 1H

FY2013 1H% Change

Packaging materials

55

43

28%

Consumer products

91

92

-1%

61

55

11%

Other

74

58

28%

Consolidated adjustment

-52

-43

---

Kureha Group Sales Total

230

205

12%

Kureha Group Operating Income Total

22

20

9%

Subsidiaries Sales Packaging materials (overseas) Continued strong performance in heat-shrink ML film and packaging machinery Decline in consumer products demand after tax rise subsided by end 2Q

7Construction
In 100 million yen

FY2014 1H

Subsidiaries Sales

FY2013 1H% Change

120

97

24%

-47

-32

---

Kureha Group Sales Total

74

65

13%

Kureha Group Operating Income Total

4

1

189%

Construction

Consolidated adjustment

 Increased construction projects related to post-earthquake reconstruction

Other Operations
In 100 million yen
Subsidiaries
Sales

FY2014 1H

FY2013 1H% Change

Environmental engineering

46

46

1%

Logistics, transportation

49

50

-2%

Trading

11

11

-2%

Other

11

10

4%

-45

-43

---

Kureha Group Sales Total

72

74

-3%

Kureha Group Operating Income Total

5

4

20%

Consolidated adjustment

 Operating gains driven by environmental engineering, particularly industrial waste treatment

8

Analysis of Recurring Income
Recurring Income

In 100 million yen

FY2014 1H

FY2013 1H

ChangeKureha Corporation

56.2

49.2

7.0

Consolidated subsidiaries

13.4

9.0

4.4

Equity-method affiliates

1.0

1.9

- 0.9

Consolidated adjustments- 10.2

- 7.5

- 2.7

Kureha Group recurring income total

60.4

52.6

7.8

Reasons for earnings increase/decrease
Reasons for increase

AmountIncreased sales volume
Increased non-operating income

222

KurehaCorporation

Reasons for decrease
Decreased unit sales prices
Increased unit price of fuels and raw
materials
Increased manufacturing fixed costs
Increased general and administrative
costs
Increased R&D costs

24

Consolidated
subsidiaries

Overseas Advanced Materials business
Construction business
Other businesses

2
3
2
6

Amount
-2
-6
-4
-3
-1
- 17

Domestic Advanced Materials
business

Total

7.0

-1
-1

4.4

9

Extraordinary Income/Losses( In 100 million yen)

Extraordinary
incomeExtraordinary
losses

FY2014 1H

FY2013 1H Change

Gain on sales of investment securities

0.7

1.6

-0.9

Compensation income

0.4

0.7

-0.3

Subsidy income

--

0.9

-0.9

Others

0.1

--

0.1

Total

1.2

3.3

-2.1

Loss on sales and retirement of noncurrent assets

1.7

3.2

-1.5

Loss on reduction of noncurrent assets

--

0.4

-0.4

Others

0.1

0.9

-0.8

Total

1.8

4.6

-2.8

10

Key Indicators( In 100 million yen)
FY2014 1H

FY2013 1H% Change

Capital expenditure

92

65

41%

Depreciation

39

45

-14%

R&D expenses

23

21

9%

Interest-bearing debt

845

739

14%

Net interest expense

0

-0

---

Exchange rate
# Employees¥103.04/$1¥138.92/€1
4,159¥98.85/$1¥130.00/€1
4,101

--1%

11

Balance Sheets( In 100 million yen)

September 30
2014

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

73
310
294
75
1,174
19
413
2,357

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

-14
5
13
13
57
-1
40
112

Liabilities
andnet assets

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

158
845
37
216
125
100
803
-45
93
1
23
2,357

165
772
38
208
125
100
783
-45
75
1
24
2,245

-6
73
-1
8
-0
20
-0
18
0
-1
112

12

Cash Flow
FY2014 1H
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
Cash and cash equivalents at end of year

99
- 29
- 25
-4
41
- 103
51
-2
- 14
87
73

FY2013 1H

Change

96
- 32
- 20
-4
39
- 101
30
-0
- 31
100
68

3
3
-5
1
2
-2
20
-2
17
- 12
5

13

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

14

FY2014 Full-Year Outlook
In 100 million yen

FY2014e

FY2013% Change

Net Sales

1,550

1,481

4.6%

Operating income

135

119

13.4%

Recurring income

130

122

6.5%

Net income

80

74

8.6%

¥11

¥11

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

Interim ¥5Year-end ¥6

Dividend payment ratio

23.6%

25.7%

 Sales growth driven by advanced materials (PPS, PGA, carbon fiber) and pharmaceuticals
 Cost control and savings, including lower raw materials cost
 Increased expenditures for SGA, R&D, safety measures, raw materials/fuel in construction
 Depreciation costs likely to decrease (changes in lifetime assessment of manufacturing plants)
 Decreased foreign exchange benefits Extraordinary losses expected to increase to ¥1.8B, including ¥0.2B losses on fixed asset
retirements

15

Segment Outlook
Advanced Materials
In 100 million yen
Kureha Sales

FY2014e

FY2013% Change

Carbon products

63

52

21%

Advanced plastics

186

171

9%

Other

6

1

500%

Carbon products (China)

23

9

154%

Battery materials

63

56

12%

Other

249

224

11%

-230

-184

--

Kureha Group Sales Total

360

328

10%

Kureha Group Operating Income Total

-11

-26

---

Subsidiaries Sales

Consolidated adjustment

 Demand for carbon fiber insulation materials expected to further recover in the solar cellindustry Continued demand for PPS in automotive and PVDF in LIB and other industrial applications
 Accelerating PVDF supply from new China plant beginning from December 2014
 PGA sales (molded parts) expected to grow in alliance with Magnum Oil Tools

16

Specialty Chemicals
In 100 million yen

FY2014e

Kureha Sales

FY2013% Change

Industrial chemicals

106

98

8%

Agrochemicals

118

118

0%

Pharmaceuticals

106

95

12%

Subsidiaries Sales

89

88

1%

Consolidated adjustment

-34

-32

---

Kureha Group Sales Total

385

366

5%

Kureha Group Operating Income Total

87

73

19%

 Industrial chemicals to secure margins on higher price Metconazole fungicide sales likely to remain at a FY2013 level Pharmaceuticals: One-time income related to Kremezin kidney therapeutic agent offsetting
negative impact of national drug price revisions and generic products

17Specialty Plastics
In 100 million yen
Kureha Sales

FY2014e

FY2013% Change

Packaging materials

120

98

22%

Consumer products

185

191

-3%

142

127

12%

Other

138

130

6%

Consolidated adjustment

-100

-94

---

Kureha Group Sales Total

485

453

7%

Kureha Group Operating Income Total

42

45

-7%

Subsidiaries Sales Packaging materials (overseas) Packaging materials and machines to expand globally and improve profitability
 Sales volume down in core consumer product, NEW Krewrap, after pre-tax hike demand New PVDC plant (in Iwaki) scheduled to begin operation in 4Q*In FY2014 and upward, food packaging and fishing lines businesses run by US
subsidiaries (sales of approx. ¥1.5B) are reported in the Specialty Plastics segment,
which were formally recorded in Advanced Materials

18

Construction
In 100 million yen

FY2014e

Subsidiaries Sales

FY2013% Change

230

250

-8%

-75

-78

---

Kureha Group Sales Total

155

172

-10%

Kureha Group Operating Income Total

5

8

-38%

Construction

Consolidated adjustment

 Fewer orders for plant construction, materials and labor costs likely to increase

Other Operations
In 100 million yen
Subsidiaries
Sales

FY2014e

FY2013% Change

Environmental engineering

105

107

-2%

Logistics, transportation

100

102

-2%

Trading

20

21

-5%

Other

20

20

0%

-80

-88

---

Kureha Group Sales Total

165

162

2%

Kureha Group Operating Income Total

14

16

-13%

Consolidated adjustment

 Focusing on high-margin environmental businesses, including low-level PCB treatment
 Termination of public waste management projects related to earthquakes

19

Key Indicators( In 100 million yen)
FY2014e

FY2013% Change

Capital expenditure

213

165

29%

Depreciation

86

91

-5%

R&D expenses

53

46

15%

Interest-bearing debt

862

772

12%

Net interest expense

-2

-1

---

Exchange rate

(Q3-4) ¥105/$1¥135/€1¥100.29/$1¥134.44/€1---# Employees

4,180

4,080

2%

20

Cash Flow
FY2014ePre-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
Cash and cash equivalents at end of year

198
- 36
- 32
16
146
- 236
69
0
- 23
87
65

FY2013
199
- 38
- 30
8
141
- 204
47
4
- 13
100
87

Change
-1
2
-2
8
5
- 32
22
-4
- 10
- 13
- 22

21

3. Consolidated Companies

22

Sales and Assets
FY2014 1H

FY2013 1H

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.
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.
Kureha China Group (3)*Specialty
Kureha America Group (4)*Plastics
Kureha Europe Group (4)*Kureha Vietnam Co.
Consolidated adjustments
Total

429
145
131
52
10
11
31
8
31
11
1
-105
182
152
44
- 18
178
146
39
19
10
7
44
17
- 52
230

1,845
133
--20
25
47
12
296
36
133
--------33
--67
47
---

388
141
107
47
7
10
25
8
28
5
1
- 76
160
146
43
- 17
173
135
40
18
--40
14
- 43
205

1,684
132
--15
25
50
11
277
28
75
--------32
--51
46
---

42
4
25
5
4
1
6
0
3
6
1
- 29
22
6
1
-1
4
11
-2
2
10
7
4
3
-9
25

161
1
--5
0
-3
1
19
8
58
--------1
--16
1
---

23

Sales and Assets
FY2014 1H

FY2013 1H

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
Consolidation Total
Equitymethod Nangtong SKT New Material Co.
affiliates
Construction

94
26
- 47
74
40
7
49
11
3
8
- 45
72
735

107
29
--77
6
60
-8
6
----

71
26
- 32
65
40
6
50
11
3
7
- 43
74
677

86
35
--71
7
59
-8
6
----

23
0
- 15
9
0
0
-1
-0
-0
0
-2
-2
57

21
-6
--6
-1
1
-0
0
----

16

--

18

--

-2

--

*Parenthesized numbers indicate the number of subsidiaries in the group
Note that, as at September 30, 2014, Kureha Corporation had 37 consolidated subsidiaries and one affiliate accounted for by theequity method, following the changes below:- Two subsidiaries of Kureha Battery Materials Japan Co., were merged and absorbed by Kureha Battery Materials Japan Co. (FY2013)- Kureha (Shanghai) Co., became a consolidated subsidiary (FY2013)- Kureha Battery Materials Shanghai Co., was newly established (FY2014 2Q)

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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