Financial Summary
Fiscal Year Ended March 31, 2024

May 14, 2024

INDEX

Highlights

01

Remarks on the Group-wide Business Performance

03

Business Performance by Segment

09

Consolidated Balance Sheets

13

Consolidated Statements of Cash Flows

14

Investments, Depreciation, R&D Expenses

15

Shareholder Returns

16

Consolidated Business Forecasts

17

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.

Highlights

Difference (YoY)
FY2022
Net sales
Operating income
Ordinary income
Net income attributable toowners of parent
Operating income margin
Net income per share
Dividend per share
ROE
Exchange rate (to USD)
Exchange rate (to EURO)
Domestic Naptha Price (per kl)(Billions of yen)(Billions of yen)

FY2023

Amount%Previous
forecast(Feb. 8, 2024)

Rate ofachievement

755.8
35.1
32.4

762.3
32.6
29.2

6.5
(2.5)
(3.2)

0.9%
(7.1%)(9.8%)

766.0
32.0
28.7

99.5%
101.8%
101.8%

23.0

23.2

0.2

0.9%

23.0

101.0%

4.6%¥349.59¥110.00
5.7%

4.3%¥357.90¥110.00
5.3%¥135.5¥141.0¥76,625¥144.6¥156.8¥69,225

State of the Global Economy - Fragmentation and economic volatility➢ Although the COVID-19 pandemic ended, the global economy has had a volatile year lacking a clear direction. And the economic
outlook remained uncertain.
➢ Monetary policy turmoil, friction between the U.S. and China, and economic downturn in China etc. continued.

Kaneka Group’s Business Performance- Sales increased and profits decreased, but profits increased significantly in the 2nd half ⓒ2023 Kaneka Group All rights reserved.

1

Business Performance by Segment(Billions of yen)
Net Sales
FY2022

1Q

88.9
Quality of Life SU
45.0
Health Care SU
16.6
Nutrition SU
41.9
Others
0.3
Total
192.7

Material SU

FY2023

2Q

3Q

4Q

84.0
42.2
17.4
44.1
0.2
187.9

77.8
43.8
18.7
46.0
0.2
186.5

83.1
41.8
18.1
45.4
0.3
188.7

Total

1Q

333.9
77.7
172.8
40.9
70.8
17.7
177.3
46.0
1.1
0.4
755.8 182.7

2Q

78.8
43.9
18.4
46.0
0.2
187.4

3Q

4Q

81.4
85.0
46.6
44.8
17.2
21.5
49.0
46.1
0.3
0.3
194.6 197.6

Total

Difference (YoY)
Amount
%

322.9
176.2
74.9
187.2
1.2
762.3

(11.0)
3.4
4.1
9.8
0.1
6.5

Difference (YoY)
Amount
%(3.3%)
2.0%
5.7%
5.6%
9.7%
0.9%

Operating Income
FY2022

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

FY2023

1Q

2Q

3Q

4Q

10.8
4.6
3.9
0.8
0.2
(8.0)
12.2

7.9
4.1
3.7
1.3
0.1
(8.5)
8.6

3.8
4.4
4.5
2.3
0.1
(8.2)
6.8

5.0
3.1
3.7
3.2
0.2
(7.6)
7.5

T Total

27.4
16.1
15.7
7.6
0.6
(32.3)
35.1

1Q

2Q

3Q

4Q

Total

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

27.5
15.4
12.9
12.1
0.7
(36.0)
32.6

0.0 0.2%(0.8) (4.8%)(2.7) (17.5%)
4.5 59.2%
0.1 20.4%(3.6)(2.5) (7.1%)※SU：Solutions Unitⓒ2023 Kaneka Group All rights reserved.

2

Remarks on the Group-wide Business Performance ➀-1
Rapid Recovery of Business Performance➢Operating income bottomed out at ¥5.6 billion in 1Q (Apr. to Jun. 30, 2023), and the pace of recovery accelerated in each successive quarter,to ¥7.0 billion in 2Q (Jul. 1 to Sep. 30, 2023), ¥9.0 bullion in 3Q (Oct. 1 to Dec. 31, 2023), and ¥11.0 billion in 4Q (Jan. 1 to Mar. 31, 2024).
➢Business performance abruptly turned towards profit recovery in the 2nd half although downturn in construction demand in Europe and the
U.S., and the inventory adjustments in the electronics market continued,➢Strong momentum returned to each Solutions Vehicle in the 2nd half despite a sluggish 1st half primarily due to volatile fluctuations in demand.
➢In 4Q, overseas business Solutions Vehicles such as Modifiers (MOD), Modified Silicone polymers (MS), and E & I Technology, and Nutrition
Solutions Unit, which is utilizing unique and niche technologies contributed to business performance.

➢Business performance in Medical grew steadily, and Vinyls and Chlor-Alkali and Foam & Residential Techs have also gotten out of the worst
period.

(単位：億円)(Billions of yen)

Operating Income
12
10
8

11.0

6
4

9.0
7.0
5.6

2
0

1Q

2Q

3Q

4Q

[FY2023]ⓒ2023 Kaneka Group All rights reserved.

3

Remarks on the Group-wide Business Performance ➀-2
Comparison between the 1st and 2nd half of the current fiscal year and comparisons between the current and theprevious fiscal year’s 2nd half both show significant profit growth, due to the portfolio transformation driven byleading-edge businesses and strong performance of foundation businesses.
● Operating income by segments (Compared 1H* to 2H*)● Operating Income of 2H (Compared FY2022 2H to FY2023 2H)(Billions of yen)(Billions of yen)
Operating Income

Operating Income
FY2022

1H

Material SU
Quality of Life SU
Health Care SU
Nutrition SU
OthersTotal※SU：Solutions Unit

FY2023

2H

1H

2H

18.7
8.7 12.1
15.4
8.7
7.5
7.1
8.3
7.5
8.2
5.9
7.0
2.1
5.5
4.6
7.5
(16.2) (15.6) (17.1) (18.2)
20.8
14.3 12.6
20.0

Difference(Vs. current 1H)

FY2022

FY2023Difference(Vs. previous 2H)

Amount2H

2H

Amount

8.7
7.5
8.2
5.5
(15.6)
14.3

15.4
8.3
7.0
7.5
(18.2)
20.0

3.2
1.2
1.2
2.9
(1.1)
7.4

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

6.6
0.8
(1.1)
2.0
(2.6)
5.7

(単位：億円)※SU：Solutions Unit

*1H: April 1 to September 30*2H: October 1 to March 31ⓒ2023 Kaneka Group All rights reserved.

4Remarks on the Group-wide Business Performance ➀-3
Momentum has returned since the 2nd half
(Billions of Yen)

Operating Income

14
12
10
8
6

FY2023 2H
20.0 billion

FY2022 1H
20.8 billion

4

FY2023 1H
12.6 billion

FY2022 2H
14.3 billion

2
0
1Q

2Q

3Q

[FY2022]

4Q

1Q

2Q

3Q

4Q

[FY2023]ⓒ2023 Kaneka Group All rights reserved.

5Remarks on the Group-wide Business Performance ②
Leading-edge Businesses Driving Kaneka’s Portfolio Transformation➢Medical, Supplement, MS, E & I, and PV: Performance steadily grew.
⚫ Strengthened differentiated and unique technologies and open innovation.

➢Medical: Business performance expanded smoothly.
⚫ Actively engaged in open innovation, including M&A and technological alliances.
⚫ With overseas market such as the U.S., China, and Asia as next strategic move, we are focusing all efforts onstrengthening our R2B capabilities and restructuring our sales system.
➢Pharma: Demand adjustment continued, but 4Q saw a significant shift toward recovery.
⚫ Bio-CDMO and small molecule pharmaceuticals: Joint development activities with customers have progressed.
⚫ Aggressively pursed further large projects in both domestic and overseas markets.

ⓒ2023 Kaneka Group All rights reserved.

6

Remarks on the Group-wide Business Performance ③
Strong Performance of Foundation Businesses➢MOD: Excess market inventory and global supply-demand imbalance ended.
➢Vinyls and Foam: Focused on activities to create a scalable global niche market.
➢Fibers: Due to prolonged inflation and currency depreciation in African countries, a temporary demand adjustment
continued in 4Q.
⚫ Pursed R2B activities to realize unique and distinctive fibers by enhancing its functionality.
⚫ Expanding our domain and strengthening sales for hair accessories in other regions, with Nigeria as our focal point.
➢Foods & Agris: Profitability improved significantly.
⚫ Sales shift to high-value-added products and expansion of profit margin have progressed.
⚫ New businesses such as dairy products are leading the portfolio transformation.
⚫ High level of performance is planned to be maintained.

(単位：億円)ⓒ2023 Kaneka Group All rights reserved.

7

Remarks on the Group-wide Business Performance ④
Progress of Investment Plan for Growth⚫Medical: New production facility in Tomatoh, Hokkaido is scheduled to start operation in
FY2025 2Q.

○Bioresorbable stents（above：before expansion, below：after
expansion）⚫ Expanded our lineup of catheter products① Incorporated biodegradable magnesium stent technology② Started importing and selling stents used to retrieve blood clots➢Kaneka Eurogentec S.A.(Pharma): Construction for production facility for mRNA, whichis expected to grow at a high rate for adoption in therapeutics for genetic diseases andcancer, is proceeding as planned.

➢KANEKA Biodegradable Polymer Green Planet™: Construction of the demonstration plant
for the mass production is progressing smoothly.

(単位：億円)➢MS: Capacity expansion in Belgium will be completed as planned this spring.

➢Decided to make a major capital investment to decommission the coal boilers at
Takasago.

ⓒ2023 Kaneka Group All rights reserved.

8

（Material Solutions Unit）

Performance
Operating Income

Net Sales
333.9

Billions of yen

Billions of yen

322.9

27.5

27.4

Lower profits in the 1st half, but profits increased significantly in the 2nd half
due to demand recovery.
On a full-year basis, the unit recovered to the previous year’s level.
Vinyls and Chlor-Alkali➢ PVC and caustic soda: Affected by the decline in the Asian market, but
performance has been recovering since 3Q.
Performance Polymers（MOD）
FY2022

FY2022

FY2023

FY2023➢ Demand has been recovering at all locations since 3Q, resulted in a significant
year-on-year increase in profits in the 2nd half.
➢ Profitability improved as efforts to strengthen business competitiveness madesteady progress.

Operating Income

Billions of yen

Performance Polymers（MS）

8.4➢ Sales remained strong in response to its unique functional characteristics.

10.8
7.9

5.5

7.0

6.6
3.8

5.0

➢ Aiming to expand business by fully leveraging increased production capacity in
Belgium to be completed this spring.
Green Planet

1Q
Apr. -Jun.

2Q
Jul. -Sep.

3Q
Oct. -Dec.

■ FY2022■ FY2023

4Q
Jan. -Mar.

➢ Progress has been made in joint development with major brand holders.

➢ Adoption in new applications increased.
ⓒ2023 Kaneka Group All rights reserved.

9

（Quality of Life Solutions Unit）

Performance
Net Sales

Higher sales and higher profits in Foam, E & I, and PV,
while ongoing demand-supply adjustments in Fibers.

Operating Income
Billions of yen

Billions of yen

176.2

172.8

16.1

15.4

Foam & Residential Techs➢

Profit margin improved, resulting in higher sales and higher profits overall.

➢

Polyolefin foam: Sales in the automobile sector and its adoption in EV applications has
expanded.

PV & Energy management
FY2022

FY2023

FY2022

FY2023➢

Domestic sales of high-efficiency photovoltaic modules for single homes were firm.

➢

To stimulate demand for zero-energy building (ZEB), in which walls and windows generate
electricity, we established the joint sales company with Taisei Corporation.
E & I Technology

Operating Income

Billions of yen➢

Polyimide shipments were affected by the adjustment of smartphone production in the first halfof the year, but demand has recovered since 3Q, especially in the Chinese market.
4.6

4.1 4.2

4.4 4.7

2.9

3.1 3.6➢

Acrylic resins for large-screen TVs: Experienced a temporary demand adjustment, but haverecovered since 4Q.

Performance Fibers
1Q
Apr. -Jun.

2Q
Jul. -Sep.

3Q
Oct. -Dec.

■ FY2022■ FY2023

4Q
Jan. -Mar.

➢

Demand was sluggish due to the significant impact of inflation and currency depreciation in
African countries.

➢

Will focus on stimulating end-user demand by strengthening marketing strategies and proactively

introducing new high-performance products.

ⓒ2023 Kaneka Group All rights reserved.

10

（Health Care Solutions Unit）

Performance
Net Sales

Operating Income
Billions of yen

Billions of yen

74.9

70.8

15.7

Medical business expanded steadily, while the Pharma business
was affected by shipment adjustments through 3Q.

12.9
Medical➢ Blood purification devices: New production facility in Hokkaido isscheduled to start operation.
FY2022

FY2022

FY2023

FY2023➢ Promoting open innovation.

PharmaOperating Income

3.9

3.0

1Q
Apr. -Jun.

3.7

4.5
2.9

Billions of yen

3.7

4.6

2.5

2Q
Jul. -Sep.

3Q
Oct. -Dec.

■ FY2022■ FY2023

4Q
Jan. -Mar.

➢ Small molecule pharmaceutical and biopharmaceutical: Experienced
longer-than-expected demand adjustments from customers, but demandhas been on a recovery trend since 4Q.
➢ mRNA: Will strengthen the production system and focus on its adoption
in therapeutics for genetic diseases and cancer.

ⓒ2023 Kaneka Group All rights reserved.

11

（Nutrition Solutions Unit）

Performance
Net Sales

Operating Income
Billions of yen

Billions of yen

187.2

177.3

12.1

FY2022

FY2023

Supplemental Nutrition➢ Coenzyme Q10: Sales remained firm in the U.S. and expanded in Asiaand Oceania.

7.6

FY2022

Substantial increases in both sales and profits owing to thecontinued strong performance of Foods and Supplement.

FY2023➢ Probiotics business: Will focus on launching a variety of new products andreinforcing our production base to expand sales in the U.S., the biggest
market.
Foods & Agris

Operating Income
Billions of yen
3.8
2.3

2.3
0.8
1Q
Apr. -Jun.

3.2

3.7

2.3

1.3

2Q
Jul. -Sep.

■ FY2022

3Q
Oct. -Dec.

➢ Profit margin improved and earnings grew substantially.
➢ Aiming to expand business by aggressively promoting high value-added“Business to Consumer” businesses including organic dairy products.

4Q
Jan. -Mar.

■ FY2023ⓒ2023 Kaneka Group All rights reserved.

12

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 ratio
Net assets per share(Billions of yen)March 31,2023

March 31,
2024

397.0
385.7
782.6
159.3
186.9
346.2
417.4
19.1
436.4
782.6

428.9
441.3
870.2
174.8
221.0
395.8
453.5
20.9
474.4
870.2

53.3%
0.38
¥6,431.63

52.1%
0.39
¥7,068.91

Difference

31.9
55.7
87.6
15.5
34.1
49.6
36.1
1.9
38.0
87.6

* Equity ： Net assets less Noncontrolling interests and Subscription rights to shares➢ Total assets increased due to an increase in property, plant and equipment resulting from expanded capital investment, an
increase in investment securities due to an increase in the fair value of shares held, and an increase in overseas groupcompanies’ assets denominated in yen resulting from the weakening of yen.
➢ Liabilities increased, primarily reflecting an increase in loans payable and issuance of bonds payable.
➢ Net assets increased owing chiefly to an increase in retained earnings, an increase in foreign currency translation
adjustments resulting from the weakening of 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 52.1%.
ⓒ2023 Kaneka Group All rights reserved.

13

Consolidated Statements of Cash Flows(Billions of yen)

FY2022

FY2023

Cash flows from operating activities

28.7

Cash flows from investing activities(42.0)

Free cash flow

(13.3)

61.9(58.8)
3.1

Cash flows from financing activities

12.4

(1.5)

Net increase (decrease) in cash and cash equivalents *

(0.0)

2.6

Cash and cash equivalents at end of period

40.7

43.3

* Including Effect of exchange rate change on cash and cash equivalents and Increase (decrease) in cash
and cash equivalents resulting from change of scope of consolidation.

➢ Net cash provided by operating activities was ¥61.9 billion, mainly due to the recording of income before income taxes
and depreciation and amortization.
➢ Net cash used in investing activities amounted to ¥58.8 billion, mainly due to purchase of property, plant andequipment.
➢ Net cash used in financing activities was ¥1.5 billion due to dividends paid and purchase of treasury stock which
offset proceeds from issuance of bonds.
➢ Cash and cash equivalents as of March 31, 2024 totaled ¥43.3 billion.
ⓒ2023 Kaneka Group All rights reserved.

14

Investments, Depreciation, R&D Expenses(Billions of yen)

FY2022

FY2023Difference

Capital investment

44.3

69.2

24.8

Depreciation and amortization

39.2

40.5

1.3

R&D expenses

32.7

35.4

2.7

4.3%

4.6%

R&D expenses to net sales

Green Planet™
15,000t/year Demonstration facility

MedicalHokkaido Construction of a new production
facility for blood purification devices

Kaneka Belgium N.V.
Capacity expansion of
Modified Silicone polymersⓒ2023 Kaneka Group All rights reserved.

15

Shareholder Returns
・Repurchased of treasury shares➢ Repurchase of treasury shares up to 8.0 billions yen (Announced on February 8, 2024) Period：Feb., 2024~Jun., 2024
【FY2023 (Result)】 Amount of treasury shares repurchased: 2.8 billions yen (Number: 0.76 million shares）【FY2024 (Plan)】

Execute repurchase of treasury shares as planned (Estimated amount: about 5.0 billions yen）

・Dividends【FY2023 (Result)】

Annual dividend: 110 yen/share
Payout ratio: 30.7%, Total shareholder return ratio: 42.8%【FY2024 (Plan)】

Planning to increase dividend
Payout ratio: 30% or more, Annual dividend: 120 yen/shareⓒ2023 Kaneka Group All rights reserved.

16

Earnings Forecasts and Other Forward-looking Statements
Kaneka’s Purpose Management➢Our purpose management, “KANEKA The Dreamology Company －Make your dreams come true－”➢We provide optimal solutions in three domains: the environmental and energy crisis, the food crisis, and the wellness (better living) crisis.

Hybrid Management➢Innovation is “a combination that does things in a different way.” Combining different things in different business fields in a new way.
➢We will create creative and valuable solutions through surprising combinations of Kaneka’s wide variety of different technologies.

R2B+P –Accelerating the Flow from Research to Business➢We will promote the fusion of research and business and further accelerate the flow from research to business.
➢Strengthening our R2B+P initiative, which strongly integrates R2B and manufacturing.

Shift in Emphasis to Life Science➢The definition of “life science” is the technologies and creative activities that use chemistry to make life on Earth healthier.
➢We will drive the transformation of its portfolio by taking on the challenge of “R2B” in the life science area.

ⓒ2023 Kaneka Group All rights reserved.

17

Earnings Forecasts and Other Forward-looking Statements
Think Global, Act Local➢Our mission is to deliver solutions all over the world to save human lives and resolve social issues, and we focus on conducting localbased business (glocal business) by overcoming cultural differences. Our goal is to become a company with a global presence.
➢We will actively promote M&A, technology and business alliances, and open innovation to transform our global business structure andachieve rapid growth.

Diversity –New Value Creation and Women’s Participation➢By going beyond attributes such as age, gender, nationality, and race, and tapping into diversity, we bring forth new ideas. In thisway, we aim to continue delivering unique Kaneka value that amazes the world.
➢Kaneka 1-on-1 will evolve into a new stage, “Kaneka 1-on-1X,” to enhance individual growth and organizational performance.

Carbon Neutral・DX Initiatives➢We work to reduce energy consumption through fuel conversion of in-house power generation facilities and process innovation.
➢We will strengthen our DX initiatives and greatly accelerate value creation through R2B+P, and will incorporate cutting-edge
technology to evolve our production plants and build up manufacturing sites in the future.

ⓒ2023 Kaneka Group All rights reserved.

18

Earnings Forecasts and Other Forward-looking Statements(Billions of yen)

FY2023ResultNet 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)

FY2024
Forecast

762.3
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%➢ While global inflation is expected to ease, the path to global economic growth is still uncertain.
➢ Although the global economy is anticipated to continue experiencing volatility and uncertainty in the businessenvironment, we will focus on the social implementation of new businesses by strategically investing in management
resources for Life Science and leading-edge businesses.

ⓒ2023 Kaneka Group All rights reserved.

19

Earnings Forecasts and Other Forward-looking Statements(By segments / Compared FY2023 to FY2024)(Billions of yen)

Net Sales\
FY2023ResultOperating Income
Difference

FY2024
Forecast

AmountFY2023Result%FY2024
Forecast

Difference
Amount%Material SU

322.9

325.0

2.1

0.6%

27.5

28.0

0.5

1.8%

Quality of Life SU

176.2

187.0

10.8

6.1%

15.4

17.5

2.1

13.9%

Health Care SU

74.9

89.0

14.1

18.9%

12.9

16.0

3.1

23.6%

Nutrition SU

187.2

188.0

0.8

0.4%

12.1

13.0

0.9

7.6%

1.2

1.0

(0.2) (15.1%)

0.7

0.5

(0.2) (25.1%)

-

-

-

-

(36.0)(37.0)

(1.0)

-

762.3

790.0

27.7

3.6%

32.6

38.0

5.4

16.6%

OthersAdjustment
Total※SU：Solutions Unit

➢Health Care and Nutrition will drive growth by capturing the needs of the times as people become more health-conscious.
➢Leading-edge businesses including E & I and PV will accelerate R2B results.
➢MOD and MS will begin to reap new results.
➢Vinyls, Foam, and Fibers are expected to support company-wide performance with solid footing and generate stable earnings.

ⓒ2023 Kaneka Group All rights reserved.

20

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

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

Medical

Medical Solutions Vehicle

PharmaPharma & Supplemental Nutrition Solutions Vehicle(Pharma)Nutrition SU

Nutrition Solutions Unit

QoL SU

Quality of life Solutions Unit

Foam

Foam & Residential Techs Solutions Vehicle

Foods

Foods & Agris Solutions Vehicle

PV

PV & Energy Management Solutions Vehicle

Supplement

Pharma & Supplemental Nutrition Solutions Vehicle(Supplemental Nutrition)

E&I

E & I Technology Solutions Vehicle

Fiber

Performance Fibers Solutions Vehicleⓒ2023 Kaneka Group All rights reserved.

24