Financial Summary
Fiscal Year Ended June 30, 2024

August 8, 2024

Highlights

01

Business Performance by Segment

03

Consolidated Balance Sheets

07

Consolidated Business Forecasts

08

INDEX

Forecasts of the operating results and 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 substantially from these projections. They do not constitute a guarantee that theCompany will achieve these forecasts or any other forward-looking statements.

(Billions of yen)HighlightsFY2023
FY2024
1Q (Apr.-Jun.) 1Q (Apr.-Jun.)
Net sales
Operating income
Ordinary income
Net income attributable toowners of parent
Operating income margin
Net income per share
Exchange rate (to USD)
Exchange rate (to EURO)
Domestic Naptha Price (per kl)

Difference (YoY)
Amount%

182.7
5.6
6.7

198.4
10.3
10.1

15.6
4.7
3.5

8.6%
83.4%
52.0%

4.2

7.0

2.8

65.8%

3.1%
¥65.355.2%¥110.38¥137.5¥149.6¥67,500¥155.9¥167.9¥79,500

State of the Global Economy - Ongoing standstill without a clear direction, in spite of signs of recovery ➢ Despite a moderate recovery trend due to easing inflationary pressure around the world, the pace of recovery
remained slow.
➢ With no signs of subsidence of geopolitical risks, such as prolonged conflicts and unstable global political situation,
the global economy remains lacking in a clear direction.

Kaneka Group’s Business Performance- Sales and profits increased, getting off a solid start with continued recovery momentum ➢ Sales and profits increased in all segments.

➢ Demand in Material and QoL SU has been recovering. Leading-edge businesses are experiencing steady growth inearnings.
➢ Life Science businesses are on a growth track, resulting in steady portfolio transformation.
ⓒ2024 Kaneka Group All rights reserved.

1

Business Performance by Segment(Billions of yen)
Net Sales

FY2023

Material SU
Quality of Life SU
Health Care SU
Nutrition SU
OthersTotal

FY2024

1Q

2Q

3Q

4Q

1Q

77.7
40.9
17.7
46.0
0.4
182.7

78.8
43.9
18.4
46.0
0.2
187.4

81.4
46.6
17.2
49.0
0.3
194.6

85.0
44.8
21.5
46.1
0.3
197.6

86.0
45.1
18.4
48.7
0.2
198.4

Difference(YoY)
Amount%8.4
4.2
0.6
2.6(0.2)
15.6

10.8%
10.2%
3.5%
5.7%
(44.1%)
8.6%

Operating Income
FY2023

Material SU
Quality of Life SU
Health Care SU
Nutrition SU
OthersAdjustment
Total

FY2024

1Q

2Q

3Q

4Q

1Q

5.5
2.9
3.0
2.3
0.3
(8.4)
5.6

6.6
4.2
2.9
2.3
0.1
(9.1)
7.0

7.0
4.7
2.5
3.8
0.2
(9.1)
9.0

8.4
3.6
4.6
3.7
0.1
(9.4)
11.0

8.4
4.3
3.0
3.9
0.1
(9.4)
10.3

Difference (YoY)
Amount%2.9 52.0%
1.3 44.8%
0.0
0.9%
1.6 71.4%(0.2) (61.3%)(1.0)
4.7 83.4%※SU：Solutions Unitⓒ2024 Kaneka Group All rights reserved.

2

Performance

Increased sales and profits in all Solutions Vehicles
due to a moderate recovery in demand in Europe, the U.S., and Asia.

Net Sales
Billions of yen

77.7（Material Solutions Unit）

86.0

Vinyls and Chlor-Alkali➢ Vinyls and Chlor Alkali: Demand currently on a recovery track despite sluggish markets conditions in Asia.
➢ Making ongoing efforts to improve profit margin with a price revision for PVC in Japan.
Performance Polymers（MOD）

FY2023
FY2024
1Q (Apr.-Jun.) 1Q (Apr.-Jun.)

Operating Income
Billions of yen

8.4
5.5

➢ Demand recovered at all locations. Cost reduction efforts also contributed to business performance.
➢ With steady sales expansion of products for non-PVC use and epoxy masterbatch (MX), we will accelerate ashift to high-value-added products.
Performance Polymers（MS）➢ Sales expanded solidly by taking advantage of unique functional characteristics.
➢ Will focus on expanding sales in new applications and new regions from 2Q*, leveraging increased production
capacity of the facilities in Belgium.
Green Planet

FY2023
1Q (Apr.-Jun.)

FY2024
1Q (Apr.-Jun.)➢ Progress has been made in collaboration with major brand holders around the world (increase in new productadoption such as a foam cushioning material etc.).
➢ Interest in Green Planet is growing with the tightening of environmental regulations across the globe.
➢ Will steadily proceed with the launch of a demonstration plant for the mass production of Green Planet.
*2Q: July 1 to September 30, 2024
ⓒ2024 Kaneka Group All rights reserved.

3

PerformanceNet Sales（Quality of Life Solutions Unit）
Increased both sales and profits as a unit with E & I seeing recovery in demand for smartphones
while Foam being affected by production adjustments in the automobile sector.

Billions of yen

Foam & Residential Techs
40.9

45.1

➢ Production adjustments in the automobile sectors as well as slumping demand in the agricultural and fisheryand construction sectors.
➢ Will continue working to improve profit margin by securing demand, revising prices, and reducing costs.
E & I Technology

FY2023
FY2024
1Q (Apr.-Jun.) 1Q (Apr.-Jun.)

Operating Income
Billions of yen➢ Shipments of both polyimide films and acrylic resins increased significantly due to increased productionof smartphones and large-screen TVs.
➢ The number of items adopting Pixeo™ for high frequency applications has increased with the increased
use of 5G smartphones.
PV & Energy management

4.3

2.9

➢ Sales of high-efficiency photovoltaic modules for residential use remained firm.
➢ Growing demand for ZEB (zero-energy building) and progress made in introducing next-generation
photovoltaic module (perovskite).
Performance Fibers

FY2023
FY2024
1Q (Apr.-Jun.) 1Q (Apr.-Jun.)➢ Currency depreciation and high inflation in African countries continue. Therefore demand for hair accessory
products recovery delayed.
➢ Will work to further stimulate demand by expanding sales to untapped regions in Africa and accelerating
the introduction of new high-performance products.
ⓒ2024 Kaneka Group All rights reserved.

4

Performance
Net Sales
Billions of yen

17.7（Health Care Solutions Unit）
Both sales and profits increased. Medical business showed solid business performance,
while Pharma business was adversely affected by demand fluctuations.

18.4
Medical➢ Sales of both blood purification devices and catheters have been expanding steadily.
FY2023
1Q (Apr.-Jun.)

FY2024
1Q (Apr.-Jun.)➢ New production facility for blood purification devices in Hokkaido to start its operations inAugust this year, expected to contribute to increasing demand in and outside Japan from 2H*.
➢ Will launch new catheters products and consider constructing a new production facility.

Operating Income
Billions of yen

Pharma3.0

FY2023
1Q (Apr.-Jun.)

3.0

FY2024
1Q (Apr.-Jun.)➢ Steady progress has been made in projects for newly developed products, despite being
affected by a demand change in some customers.
➢ Currently working to enhance the framework of R&D bases and strengthening businessfoundation to prepare for the expansion of demand for therapeutics for genetics diseases andcancer.
*2H: October 1, 2024 to March 31, 2025
ⓒ2024 Kaneka Group All rights reserved.

5Performance
Net Sales（Nutrition Solutions Unit）
Substantial increases in both sales and profits owing to the continued
strong performance of Supplemental Nutrition and Foods.

Billions of yen

46.0

48.7
Supplemental Nutrition➢ Coenzyme Q10: Sales in the U.S. and Europe remained firm, and have grown in Asia andOceania as well. Will focus on expanding markets in and outside Japan by developing andintroducing new products.
FY2023
FY2024
1Q (Apr.-Jun.) 1Q (Apr.-Jun.)➢ Probiotics business: Sales in the Americas are favorable. Will push forward with its businessexpansion on a global scale.

Operating Income
Billions of yen

Foods & Agris
3.9
2.3

FY2023
FY2024
1Q (Apr.-Jun.) 1Q (Apr.-Jun.)➢ Profitability improved with a great contribution from further progress in the sales shift to highvalue-added products as well as in the improvement of profit margin.
➢ Business to Consumer businesses: Focusing on the introduction and sales expansion ofunique and distinctive high-value-added products such as “Watashi no Chikara (My Energy)™
- Q10 Yogurt” and “Kaneka Q10™ Fruit Gummies.”ⓒ2024 Kaneka Group All rights reserved.

6

(Billions of yen)

Consolidated Balance Sheets
AssetsCurrent assets
Noncurrent asssets

Total assets
Interest bearing debt
Liabilities Others
Total liabilities
Equity *Net assets Others
Total net assets
Total liabilities and net assets

Equity ratio
Debt equity ratioNet assets per share

March 31,2024

June 30,2024

428.9
441.3
870.2
174.8
221.0
395.8
453.5
20.9
474.4
870.2

435.7
450.5
886.2
187.4
217.5
404.8
459.9
21.5
481.4
886.2

52.1%
0.39
¥7,068.91

51.9%
0.41
¥7,310.35

Difference

6.9
9.2
16.0
12.5
(3.5)
9.0
6.4
0.6
7.0
16.0

* Equity ： Net assets less Noncontrolling interests and Subscription rights to shares➢Total assets increased due to an increase in inventories and an increase in overseas group companies’ assets
denominated in yen resulting from the weakening of the yen.
➢Liabilities increased, primarily reflecting an increase in loans payable.
➢Net assets increased owing chiefly to an increase in foreign currency translation adjustments resulting from theweakening of the yen, and an increase in valuation difference on available-for-sale securities due to an increase in
the fair value of shares held.
➢Equity ratio was 51.9%ⓒ2024 Kaneka Group All rights reserved.

7

Consolidated Business Forecasts➢ QoL SU: While Fiber is facing a delayed recovery in demand, it maintains stable performance. New demand forsmartphones is expanding and profit margin for Foam is also improving. Thus, we expect earnings in this unit to expand.
➢ Material SU: Although sluggish construction demand in Europe and the U.S., and market conditions in Asia are expected to continue,
sales of new products in MOD and MS have been increasing and profit margin improving.

➢ Health Care SU: We are planning to introduce new products in Medical and increase sales from new projects in Pharma toward 2H*.
➢ We will further accelerate our company-wide portfolio transformation to improve our profitability.
➢ We have not revised the forecast for consolidated financial results announced on May 14, 2024.
(Billions of yen)

<Reference> Forecast for consolidated financial results for the year
ending March 31, 2025 (announced on May 14, 2024)
Net sales
Operating income
Ordinary income
Net income attributable to owners of parent
Operating income margin
Net income per share
ROE
Exchange rate (to USD)
Exchange rate (to EURO)
Domestic Naptha Price (per kl)

FY2023ResultFY2024
Forecast762.3
32.6
29.2
23.2

790.0
38.0
34.0
24.5

4.3%
¥357.90
5.3%

4.8%¥388.18
5.4%¥144.6¥156.8¥69,225¥140.0¥155.0¥65,000

Difference
Amount％27.7 3.6%
5.4 16.6%
4.8 16.3%
1.3 5.5%*2H: October 1, 2024 to March 31, 2025
ⓒ2024 Kaneka Group All rights reserved.

8

The List of Kaneka Business Unit Abbreviations

Material SU

Material Solutions Unit

VinylsVinyls & Chlor-Alkali Solutions Vehicle

MOD

Performance Polymers (MOD) Solutions Vehicle

MS

Performance Polymers (MS) Solutions Vehicle

Health Care SU

Health Care Solutions Unit

MedicalMedical Solutions Vehicle

PharmaPharma & Supplemental Nutrition Solutions Vehicle(Pharma)Nutrition SU

Nutrition Solutions Unit

QoL SU

Quality of life Solutions Unit

FoamFoam & Residential Techs Solutions Vehicle

Foods

Foods & Agris Solutions Vehicle

PVPV & Energy Management Solutions Vehicle

Supplement

Pharma & Supplemental Nutrition Solutions Vehicle(Supplemental Nutrition)

E&I

E & I Technology Solutions Vehicle

Fiber

Performance Fibers Solutions Vehicleⓒ2024 Kaneka Group All rights reserved.

12

KANEKA CORPORATION
https://www.kaneka.co.jp/en/