Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019
(Japanese GAAP, Consolidated)
February 12, 2020
Name of Listed Company: Kaneka Corporation
Stock Exchange Listings: Tokyo, Nagoya
Code Number:
4118
URL http://www.kaneka.co.jp
Representative: Mamoru Kadokura Title: President, Representative Director
Contact Person: Osamu Ishida Title: Officer – Investor & Public Relations Department
Phone: +81-3-5574-8090
Scheduled date for submitting financial statements: February 13, 2020 Scheduled date of dividend distribution: －Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Business Performance for 3rd Quarter, Ended December 31, 2019(from April 1, 2019 to December 31, 2019)(1) Consolidated business performance (cumulative)(% indicates year-on-year change)
Net sales

Operating income¥ million% ¥ million

Net income attributableto owners of parent

Ordinary income% ¥ million% ¥ million%

Apr. 2019 – Dec. 2019452,467 (3.2)
18,891 (29.0)
15,139(34.0)
9,232(37.1)
Apr. 2018 – Dec. 2018467,615
4.9
26,6191.0
22,937(5.6) 14,681(6.7)
Note: Comprehensive income: ¥10,264 million (-13.3%) for the nine months ended December 31, 2019¥11,837 million (-60.0%) for the nine months ended December 31, 2018
Net income
per share¥

Fully diluted net
income per share¥

Apr. 2019 – Dec. 2019141.55141.28Apr. 2018 – Dec. 2018
223.90223.54
Note: The Company conducted a consolidation of shares of common stock at the ratio of five shares to
one share on October 1, 2018. However, net income per share and fully diluted net income pershare have been calculated as though the share consolidation took place on April 1, 2018.
(2) Consolidated financial position
Total assets¥ million

Shareholders’equity ratio

Net assets¥ million%

665,580
360,432
As of March 31, 2019659,587
360,726(Reference) Shareholders’ equity: ¥337,903 million as of December 31, 2019
¥336,992 million as of March 31, 2019
As of December 31, 2019

50.8
51.1

2. Dividends
Annual dividends
1st Quarter¥

Apr. 2018 – Mar. 2019

2nd Quarter¥－

3rd Quarter¥

9.00

Year-end¥－

Annual¥55.00－

Apr. 2019 – Mar. 2020
50.00
－
－
Apr. 2019 – Mar. 2020
50.00
100.00(Forecasts)
Note: Changes in dividend forecast during the quarter under review: No
The Company conducted a consolidation of shares of common stock at the ratio of five shares to
one share on October 1, 2018. The 2nd Quarter dividend per share for the fiscal year ended March
31, 2019 shows the amount before the consolidation of shares and the annual dividend per shareis shown as “—.”3. Forecast for Consolidated Business Performance for the Year Ending March 31, 2020
(from April 1, 2019 to March 31, 2020)(Percentage figures represent changes from the corresponding periods of the previous fiscal year)
Net income
Net income
Operating
Net sales
Ordinary income attributable toper share
incomeowners of parent¥ million% ¥ million% ¥ million% ¥ million%¥

Full year
610,000 (1.8) 28,000 (22.3)
22,500 (28.0) 15,500 (30.3)
237.64
Note: Revisions to consolidated business performance forecasts during the quarter under review: Yes
4. Other(1) Changes in principal subsidiaries during the term: No(2) Application of simplified methods of accounting and specific accounting methods: No(3) Changes in accounting principles, changes in estimates, or restatements
1. Changes owing to revisions in accounting standards: Yes
2. Changes other than 1. above: No
3. Changes in accounting estimates: No
4. Restatements: No
Note: For details, please refer to the section entitled “(3) Notes to the Consolidated Financial
Statements (Changes in Accounting Principles)” under “2. Quarterly Consolidated Financial
Statements” on page 10.
(4) Number of shares outstanding (common stock)
1. Number of shares issued at the end of the period(including treasury stock):
2. Number of shares of treasury stock at the end of theperiod:3. Average number of shares during the period (calculated
cumulatively from the beginning of the fiscal year)

December 31,

68,000,000

2019

shares

December 31,

2,774,012

March 31, 2019

68,000,000

March 31, 2019

2,778,423

shares2019

shares

December 31,

65,224,272

December 31,

65,573,247

shares2019

shares2018

sharesNote: The Company conducted a consolidation of shares of common stock at the ratio of five shares to
one share on October 1, 2018. However, the number of shares issued at the end of the period,
the number of shares of treasury stock at the end of the period, and the average number ofshares during the period have all been calculated as though the share consolidation took place
on April 1, 2018.

(These financial statements are exempt from audit procedures)(Explanations or other items pertaining to appropriate use of business performance forecasts)
The business performance forecasts and certain other statements contained in this document are
forward-looking statements, which are rationally determined based on information currently
available to the Company. For a variety of reasons, actual performance may differ substantiallyfrom these forecasts. They do not constitute a guarantee that the Company will achieve these
forecasts or other forward-looking statements. For cautionary items used in business performance
forecasts, please refer to the section entitled “(3) Consolidated Business Forecasts” under “1.
Quarterly Consolidated Business Performance” on page 5.

Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)

Supplementary Materials
Contents
1. Quarterly Consolidated Business Performance ------------------------------------------------------ P. 2
(1) Consolidated Business Performance -------------------------------------------------------------- P. 2
(2) Consolidated Financial Position ---------------------------------------------------------------------- P. 4
(3) Consolidated Business Forecasts ------------------------------------------------------------------ P. 5
2. Quarterly Consolidated Financial Statements ------------------------------------------------------- P. 6
(1) Quarterly Consolidated Balance Sheets ---------------------------------------------------------- P. 6(2) Quarterly Consolidated Statements of Income and Comprehensive Income ------------ P. 8
(3) Notes to the Consolidated Financial Statements ----------------------------------------------- P. 10(Notes on the Premise of a Going Concern) ----------------------------------------------------- P. 10(Notes in the Event of Significant Changes in the Amount of Shareholders’ Equity) --- P. 10(Changes in Accounting Principles) ---------------------------------------------------------------- P. 10(Segment Information) -------------------------------------------------------------------------------- P. 10－1－Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)

1. Quarterly Consolidated Business Performance(1) Consolidated Business Performance
The global economy is entering the age of the networked society, where economic activity isconnected on a global scale. From this perspective, during the three months from October toDecember 2019 (the “3rd quarter”), the intensified U.S.-China trade friction became a major causeof economic deceleration as its impact spread out to technologically interconnected global supply
chains. A loss of momentum in economic conditions for the 3rd quarter was also due to the U.K.’s
exit from the E.U., and heightened geopolitical risks such as tensions between the U.S. and Iran.
Entering the 4th quarter, the economic recovery gradually found firmer footing, as U.S.-China
trade friction eases, the effects of the U.K.’s exit from the E.U. fade, and the situation in the Middle
East settles, as well as expectations of political stabilization in the U.S. However, the outbreak ofnovel coronavirus in January has seen concern over the risk of a downturn spreading to an
unexpected degree. The situation could have a grave impact on the global economy.
The Kaneka Group’s business performance has seen decreases in sales and profit, centeredon the Material Solutions Unit, due to the impacts of weak demand in Asia and Europe andsluggish conditions in the automotive and electronics industries. The slowdown in the economies ofoverseas markets where the Company has been focusing its efforts was a major factor in theseresults. In this business environment, the Kaneka Group’s business performance for the first ninemonths under review (April 1, 2019 to December 31, 2019) was as follows. Consolidated net sales
amounted to ¥452,467 million (down 3.2% year on year), and operating income was ¥18,891
million (down 29.0% year on year). Ordinary income was ¥15,139 million (down 34.0% year onyear). Net income attributable to owners of parent was ¥9,232 million (down 37.1% year on year).
Operating performance by business segment was as follows:
1) Material Solutions Unit
In the Vinyls and Chlor-Alkali business, market conditions for caustic soda remain sluggish, as the
slowdown in the Chinese economy is still exerting a strong influence. Meanwhile, sales of PVC
resins and specialty PVC resins increased since overseas demand remained firm, notably in India
despite lackluster market conditions in Japan. The Vinyls and Chlor-Alkali Solutions Vehicle
recovered to the same level as the previous fiscal year in the 3rd quarter, and is expected torecover further in the 4th quarter. However, with the impact of the global economic deceleration
throughout the year, the Solutions Vehicle has yet to make a full recovery.
In the Performance Polymers business, modifiers have been strongly affected by declining
demand and trading volume in Japan and overseas due to the U.S.-China trade friction. The
Performance Polymers (MOD) Solutions Vehicle is working to create a new high-value-added
market through development of new, large-scale products and investment. At the vanguard ofbusiness structural change is the advanced development of epoxy masterbatch. The special
properties of epoxy masterbatch technology, which meets cutting edge market needs such as
structural adhesive for automobiles and electronics applications, have been highly rated and sales
are increasing sharply. To meet vigorous demand which outstrips the capacity of our plants, theGroup has been working to increase production through debottlenecking measures, and aiming tocomplete construction of additional capacity that will double it, with the aim of starting operations inJuly 2020.
In modified silicone polymers, sales trended firmly in Europe, where enhanced production
capacity in Belgium contributed immensely to earnings. The Performance Polymers (MS) Solutions
Vehicle is a unique product that has strong potential for technological differentiation, and the Groupis working steadily to develop the Asian market as a new frontier. Notably, new production lines in
the Malaysian plant that opened in 2018 are pushing up earnings.

－2－

Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)

Kaneka Biodegradable Polymer PHBH has been featured as a solution to the issue of
microplastics by international bodies such as the G20 and in the media, including CNN. This has
led to a flood of inquiries from global corporations with a high interest in environmental issues. As
an innovative material that has the potential to change social systems, PHBH is being increasingly
adopted for use in a wide range of applications, such as straws, shopping bags, and packaging
materials for customers including cosmetics manufacturers and convenience stores such as
Seven-Eleven Japan Co., Ltd. Meanwhile, a large number of new projects have started overseas
with major brand holders. Sales inquiries have vastly exceeded the capacity of the 5,000-ton plantthat was completed in December 2019, and the Group has commenced preparations for theconstruction of a full-scale mass production plant with a capacity of 20,000 tons.
2) Quality of Life Solutions Unit
In the Performance Fibers business, the African market has expanded considerably, and the Grouphas made headway on developing new sources of demand in advanced countries as well, which
has been driving earnings in this segment. To meet surging demand, the Group will bolster
production through debottlenecking measures, while examining options for expanding facilities at
the Takasago Plant, where production capacity can be ramped up the fastest.
In the Foam & Residential Techs business, earnings from expandable polystyrene resin andextruded polystyrene foam board increased as the launch of new products such as thin highthermal insulation coupled with expanded demand. The Group is taking steps to reinforce thebusiness platform with a view to increasing profitability, such as reorganizing sites to improve
distribution efficiency. In polyolefin foam, global demand increases amid a rise in needs for energy
saving, weight reduction, and safety in the automotive and mobility fields. The Group will accelerate
the strengthening of its business platform, such as strengthening production capacity in Thailand
and Belgium and introducing new processes.
In the PV & Energy management business, discussions have begun about making renewableenergy, particularly solar power systems, the main power source in Japan’s energy policy amid
concerns over global warming. As a result, sales of these products have been growing steadily,
primarily to major homebuilders. The Group and Taisei Corporation have jointly developed
innovative construction methods with multifunctionality and design properties enabling exterior
walls and windows to generate electricity, and highly efficient, see-through photovoltaic cells using
this technology have been adopted for the New National Stadium Japan. The Group is working
without delay to build a framework to boost production in response to growing demand for thesenew products, which are net zero energy management system materials for houses and buildings.
In the E & I Technology business, polyimide films and graphite sheets were strongly affectedby a slowdown in the smartphone market. The E & I Technology Solutions Vehicle is working withend digital device manufacturers on joint development of materials that cannot be imitated by othercompanies, such as CMOS sensor materials used for supporting autonomous driving systems in
automobiles. The Group will strengthen R&D activities for unique new products that will support
digital transformation, such as organic electroluminescent displays and 5G smartphones, for which
demand is expected to grow going forward.

－3－

Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)

3) Health Care Solutions Unit
In the Medical Devices business, sales of new products such as high -functionality catheters are
increasing in the Japanese and overseas markets. The Group is looking to increase the capacity of
its Vietnam plant to meet surging demand. The embolization coil that was launched in Japan inNovember has seen steady sales growth, and is also scheduled for launch in the U.S. Goingforward, the Group aims to aggressively expand its business in new therapeutic fields such as
drug-coated balloon catheters, electrode catheters, and fractional flow reserve products. To
achieve rapid expansion of the Medical Devices Solutions Vehicle, the Group will actively seek
capital and business alliances with U.S. and European medical equipment companies.
In the Pharma business, a large shipment of small molecule pharmaceuticals was shifted to
the 4th quarter, which had a major impact on the 3rd quarter operating results of the Health Care
Solutions Unit. Sales of active pharmaceutical ingredients used in generic pharmaceutical products
and biopharmaceuticals are expanding steadily. Increased production capacity at Osaka Synthetic
Chemical Laboratories, Inc. will begin to contribute to earnings going forward. Construction tobolster production capacity at Kaneka Eurogentec S.A. is now complete, and preparations for fullscale operations are proceeding swiftly.
4) Nutrition Solutions Unit
In the Foods & Agris business, the Group conducted proactive proposal-based sales to major
suppliers of bakery products, convenience stores, and food manufacturers. These activities drove
expanded sales, leading to earnings growth. In addition, as tastes continue to diversify, theCompany’s spice market is growing and the products of Kaneka Sun Spice Corporation haveenjoyed adoption in an increasing number of products, contributing to earnings growth. In
Indonesia, where the tasty bread and confectionery culture of Japan is entering a period ofbooming expansion, the Group’s new factory is on schedule to start operations in May 2020, which
will expand earnings. The Group has garnered a positive reception in the market for its "Milk forbread lovers," "Café au lait for bread lovers" and "Belgian Yogurt Pur Natur," products, and will use
their momentum to quickly start a new dairy product business. The Group will move quickly toconsider construction of a new dairy product plant, and aims to partner with dairy farmers todevelop recycling-oriented dairy farming.
In the Supplemental Nutrition business, amid growing public awareness around health, theGroup made AB-Biotics, S.A., of Spain a wholly owned subsidiary as a step towards creating a new,Kaneka-style supplement business model centered on its branded reduced form of coenzyme Q10.
AB-Biotics’ lactic acid supplements are regarded highly for their unique properties, and their global
sales are increasing. Going forward, the Group will cooperate with the food business and carefully
distribute scientific information about the effects of the supplements, aiming to diversify its
supplement products. The Group will quickly establish production of lactic acid in the U.S. andrapidly set up sales in the U.S. and Japan.
(2) Consolidated Financial Position
1) Status of Assets, Liabilities and Equity
Total assets were ¥665,580 million as of December 31, 2019, up ¥5,992 million compared with
March 31, 2019, due to an increase in property, plant and equipment. Liabilities totaled ¥305,148
million, up ¥6,286 million due to an increase in notes and accounts payable-trade and loans
payable. Net assets were ¥360,432 million, down ¥294 million due to a decrease in foreign
currency translation adjustment.

－4－

Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)(3) Consolidated Business Forecasts
During the 3rd quarter, geopolitical risks and the slowdown of economic momentum started by the
U.S.-China trade friction expanded on the global scale. Globally interconnected corporate activities
have also suffered an inevitable significant setback from these impacts.
The Company’s earnings were expected to improve in the 3rd quarter, after reaching a bottom
in the 2nd quarter. Regrettably, however, the recovery has been subdued at a lower level thanplanned. For the 4th quarter, encouraging signs of economic recovery have emerged with abackground of progress in dialogue between the U.S. and Chinese government and subsidence ofgeopolitical risks. However, the coronavirus issue has expanded with unexpected speed and scale.
It is having a grave impact on the recovery of the global economy and business momentum. While
there are clear signs of increasing momentum in earnings recovery in each business unit for the
4th quarter after bottoming out in the 2nd quarter, a sense of uncertainty in business sentiment andrecognition of the uncertain business environment are growing day by day. Under these conditions,the Company has factored in a certain level of risk of a downturn due to the impact of thecoronavirus, and in so doing has revised its earnings forecast downward.
Although the recovery of momentum in the 3rd quarter occurred after the revision of earnings
forecasts on November 12, in the 4th quarter business conditions are on a clear track to recovery,
barring the corona virus issue. The Solutions Vehicles excluding Foam & Residential Techs andFoods & Agris, which experience seasonal drops in earnings, and Performance Fibers, where the
Takasago Plant is undergoing regular maintenance, are showing clear signs of momentum
recovery. The Group now expects to see a significant recovery trend in overseas markets for the
Material Solutions Unit, a recovery in the smartphone market for the E & I Technology Solutions
Vehicle, improvements in the Medical Devices and Pharma & Supplemental Nutrition Solutions
Vehicles, which continue to see stable market expansion, and an increase in earnings with
progress in structural reforms of the PV & Energy management Solutions Vehicle. The Group willcontinue making every effort to change its portfolio to increase profitability. While the corona virus
issue has been partially factored into the Group’s forecast, it is not yet at a level where all of thedownside risk to earnings can be projected.
With regard to exchange rates and raw material prices for the 4th quarter, the forecast figures
assume an exchange rate of ¥109 to the U.S. dollar, ¥121 to the euro and a domestic naphtha
price of ¥44,000 per kiloliter.
Revisions to forecast for consolidated business performance in the term ending March 31, 2020
(from April 1, 2019 to March 31, 2020)
Net income
Operating
Ordinary attributable to Net income
Net sales
incomeincomeowners ofper share
parent¥ million¥ million¥ million¥ million¥

Previous forecast (A)625,000

32,00026,00018,000275.98Current forecast (B)610,000

28,00022,50015,500237.64

Change (B–A)(15,000)(4,000)(3,500)(2,500)Percentage change (%)(2.4%)(12.5%)(13.5%)(13.9%)(Reference:Year ended March 31, 2019)

621,043

36,041

31,26822,238339.15

Note: The above performance forecasts are regarded as reasonable on the basis of information
available at the time of announcement. Readers should therefore be aware that actual results
may vary from these forecasts due to various uncertainties.
－5－Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
FY2018FY2019 3rd Quarter

Term ended
March 31, 2019

Term ended
December 31, 2019

AssetsCurrent assets
Cash and deposits

40,90534,769Notes and accounts receivable-trade147,993

142,825

Short-term investment securities

232

109

Merchandise and finished goods

61,60966,483Work in process

9,365

9,550

Raw materials and supplies

41,45942,597

Other

13,91818,881

Allowance for doubtful accounts(1,237)(1,254)

Total current assets

314,245

313,962

Noncurrent assets
Property, plant and equipment
Buildings and structures, net

79,81584,357

Machinery, equipment and vehicles, net

106,395

109,951

Other, net

65,71068,516

Total property, plant and equipment

251,922

262,825

3,981

3,508

Intangible assets
Goodwill
Other

9,443

9,974

Total intangible assets

13,424

13,483

Investment securities

61,27358,715

Other

18,982

16,839Allowance for doubtful accounts

(260)

(245)

Total investments and other assets

79,99475,308

Total noncurrent assets

345,342351,617

Total assets

659,587

665,580

Investments and other assets－6－Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)(Millions of yen)
FY2018FY2019 3rd Quarter

Term ended
March 31, 2019

Term ended
December 31, 2019

Liabilities
Current liabilities
Notes and accounts payable-trade

84,79786,725

Short-term loans payable

67,66879,126

Current portion of bonds

10,000－

Income taxes payable

2,864

1,751

Provision

128

8

Other

48,45347,468

Total current liabilities

213,912215,079

Noncurrent liabilities
Bonds payable－

10,00045,122

39,162266

268

Net defined benefit liability

34,98534,662

Other

4,574

5,973

Total noncurrent liabilities

84,94890,068

Total liabilities

298,861

305,148

33,04633,046Long-term loans payable
Provision

Net assets
Shareholders' equity
Capital stock
Capital surplus

32,78431,074Retained earnings

272,944

275,494

Treasury stock(11,601)(11,583)

Total shareholders' equity

327,173

328,033

19,642

20,915

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

(110)

(105)

Foreign currency translation adjustment

Deferred gains or losses on hedges(4,008)(5,830)Remeasurements of defined benefit plans(5,705)(5,110)Total accumulated other comprehensive income

9,818

9,870

Subscription rights to shares

431

478

Noncontrolling interests

23,302

22,050Total net assets

360,726

360,432

Total liabilities and net assets

659,587

665,580－7－

Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)

FY2018 3rd Quarter

FY2019 3rd Quarter

From April 1, 2018
to December 31, 2018

From April 1, 2019
to December 31, 2019

Net sales

467,615452,467

Cost of sales

337,368

326,724

Gross profit

130,246

125,743

Selling, general and administrative expenses

103,626

106,851

Operating income

26,61918,891Non-operating income
1,490

1,483

Gain on sales of investment securities

Dividends income

119

400

Equity in earnings of affiliates－

117

Gain on sales of noncurrent assets

427

315

Other

796

475

Total non-operating income

2,834

2,793

Non-operating expenses
Interest expenses

1,542

1,317

Loss on retirement of noncurrent assets

2,058

1,379

Foreign exchange losses

366

650

30

－

Other

Loss on earnings of affiliates

2,518

3,198

Total non-operating expenses

6,516

6,545

Ordinary income

22,937

15,139Patent protection court cost

1,285

864

Total extraordinary losses

1,285

864

Income before income taxes

21,652

14,275

Income taxes-current

4,479

3,257

Income taxes-deferred

1,202

718

Extraordinary losses

Total income taxes

5,682

3,976

Net income

15,970

10,299Net income attributable to noncontrolling interests

1,288

1,066

Net income attributable to owners of parent

14,6819,232－8－

Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

FY2018 3rd Quarter

FY2019 3rd Quarter

From April 1, 2018
to December 31, 2018

From April 1, 2019
to December 31, 2019

Net income

15,970

10,299Other comprehensive income
Valuation difference on available-for-sale securities(4,732)

1,292

Deferred gains or losses on hedges

(15)

5

Foreign currency translation adjustment(389)(1,932)Remeasurements of defined benefit plans, net of tax

1,010

598

(6)

1

Total other comprehensive income(4,133)(35)

Comprehensive income

11,837

10,264Comprehensive income attributable to owners of parent

10,7299,284

Comprehensive income attributable to noncontrolling interests

1,107

979

Share of other comprehensive income of associates accounted forusing equity method

Comprehensive income attributable to－9－Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)(3) Notes to the Consolidated Financial Statements(Notes on the Premise of a Going Concern)
Not applicable(Notes in the Event of Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Changes in Accounting Principles)
At the Group’s subsidiaries adopting IFRS, IFRS 16 Leases (hereinafter, “IFRS 16”) has been applied fromthe three months ended June 30, 2019. Accordingly, lessees will, in principle, recognize all leases as assets
and liabilities on the balance sheets. In applying IFRS 16, the Group has applied the method where thecumulative effect of applying this standard is recognized at the date of initial application in accordance withthe transitional treatment of the standard. As a result, the ending balances of “Property, plant andequipment,” “Other” under current liabilities and “Other” under noncurrent liabilities in the nine months ended
December 31, 2019 increased by ¥2,283 million, ¥282 million and ¥2,101 million, respectively. The
application of IFRS 16 had a negligible impact on earnings for the nine months ended December 31, 2019.
(Segment Information)
ⅠTerm from April 1, 2018 to December 31, 2018
1) Sales and Income (Loss) by Segments(Millions of yen)Segment information
Adjustment

Figures in consolidated
financial statements(Note 2)

467,615―467,615

814

1,801

(1,801)―

467,793

1,623

469,417(1,801)

467,615

42,857371

43,229(16,609)

26,619Others(Note 1)

Material
Solutions
Unit

Quality of
Health Care Nutrition
Life
Solutions Solutions
Solutions
Unit
Unit
Unit

Total

191,126

119,632

35,093

120,954

466,806

809

944

17

―

25

987

Total

192,070

119,649

35,093

120,979

Segment profit

19,623

11,804

7,352

4,077

Total

Sales
Customers
Intersegment

Notes: 1. “Others” is a business segment that is not included in the reporting segments and includes property
insurance and life insurance business.
2. Segment profit is reconciled with operating income in the quarterly consolidated financial statements.
2) Reconciliations between Segment Total and Quarterly Consolidated Statements of Income (Adjustments)(Millions of yen)
IncomeAmountSegment total

42,857

Segment profit of Others371

Elimination of intersegment transactions

12

Companywide expenses (Note)(16,677)

Other adjustments

54

Operating income in the quarterly consolidated
statements of income

26,619Note: Companywide expenses primarily are expenses for basic R&D that are not allocable to any
reporting segment.

―10―Quarterly Financial Results for 3rd Quarter, Ended December 31, 2019, Kaneka Corporation (4118)

ⅡTerm from April 1, 2019 to December 31, 20191) Sales and Income (Loss) by Segments(Millions of yen)
Adjustment

Figures in
consolidated
financialstatements(Note 2)452,467―

452,467

822

1,643

(1,643)―452,482

1,628

454,111(1,643)452,467

36,056394

36,451(17,559)

18,891

Segment information
Material
Solutions
Unit

Quality of Life
Solutions
Unit

Health Care
SolutionsUnit

180,661

118,652

773

Total
Segment profit

Others(Note 1)

Nutrition
Solutions
Unit

Total

33,251

119,096451,662

805

15

―

31

820

181,435

118,667

33,251

119,128

14,66911,363

6,048

3,976

Total

Sales
Customers
Intersegment

Notes: 1. “Others” is a business segment that is not included in the reporting segments and includes property
insurance and life insurance business.
2. Segment profit is reconciled with operating income in the quarterly consolidated financial statements.
2)

Reconciliations between Segment Total and Quarterly Consolidated Statements of Income (Adjustments)(Millions of yen)
IncomeAmountSegment total

36,056

Segment profit of Others394

Elimination of intersegment transactions(0)

Companywide expenses (Note)(17,569)

Other adjustments

10

Operating income in the quarterly consolidated
statements of income

18,891

Note: Companywide expenses primarily are expenses for basic R&D that are not allocable to any
reporting segment.

－11－