(Stock Code : 4118)

To Our Shareholders

Interim Report forthe 97th Business Period
From April 1 to September 30, 2020

Message from the President
To our valued shareholders,Thank you for your continued support and interestin Kaneka Group.
President and Representative Director Minoru Tanaka, who was appointed
in April 2020, reviews the business performance for the first half, the forecast,and the new medium-term management plan.

Q How did you feel about your appointment as president in April?

Kaneka brings the environment to its ideal state,develops its business in a “wellness-first” direction,energizes people,

President

adds vibrancy to business,and helps build a happier society.

To make the world more wellness-first.
Kaneka takes an innovative approach to science,and seeks to fulfill people’s dreams by offering a wide variety of solutions.

Sustainable Solutions
for an Evolving World.

1

K ANEK A

Minoru Tanaka

A When I was approached about theappointment, the Company’s earnings
were struggling, and my first thought wasthat I would be taking on a tremendous
responsibility. At the same time, I was felt
a strong sense of mission—that I must do
something to close the gap and realize
the 2020 goals that we had laid out under
the long-term management vision,“Declaration of Kaneka United for the
future,” which we formulated when I wasGeneral Manager of the Corporate
Planning Division. Partly because of the
impact of the COVID-19 pandemic, myterm has started in rough conditions, but I
intend to contribute as best as I can as
the culmination of my life in the Company.

Q Could you review the first half and give your forecast for the second half and onward?
A Global economic activity has been hit hard by the
COVID-19 pandemic, giving rise to a rapid paradigm shift insociety, along with a variety of changes in people’s values.
The global economy rebounded from the serious downturn inthe first quarter (April-June 2020; “1Q”) and showed
increasingly strong signs of recovery in various industries inthe second quarter (July-September 2020; “2Q”), primarily in
China and the U.S. From October onward, the pace ofrecovery is expected to increase overall, despite somelingering uncertainty about factors such as the impact of asecond wave of COVID-19 in Europe and the U.S.
Under the current conditions, the Group’s first-half
performance saw decreases in both sales and profits year on
year, with net sales of ¥266.7 billion and operating income of¥7.0 billion. However, the foundation business group (Vinyls
and Chlor-Alkali, Performance Polymers (MOD), Performance
Polymers (MS), Foam & Residential Techs, Performance
Fibers, and Foods & Agris), which was heavily impacted by
the COVID-19 crisis in 1Q, has steadily improved from 2Q
onward, owing to progress on an improvement in production
in step with the resumption of global economic activity. The

Company now sees a clear path for the foundation businessgroup to return to a trajectory for additional growth beyond
COVID-19. The highly profitable leading-edge business group(E & I Technology, PV & Energy management, Medical,
Pharma, Supplemental Nutrition, and Agricultural production
support), which has an expanding range of growth
opportunities amid the current paradigm shift, continues toachieve steady growth. As a result, we anticipate stronger
momentum from October onward, shifting our performancefrom an improvement to a stage of resurgent growth. Looking
ahead the dramatic paradigm shift caused by the coronavirus
shock, the Company is working to improve productivity andcreate new business value by applying a “select andconcentrate” strategy to Research & Business (R&B) initiatives
and by promoting digital transformation (DX) of back office
departments and other areas. Meanwhile, the Company isworking to implement rigorous cost rationalization, including
operating expenses. The Company will work to accelerate
the transformation of the business portfolio by striving torealize “Smart Work,” a Company-wide initiative to maximize
productivity.
K ANEK A

2

new medium-term management plan was announced in October. Could you give an
Q Aoverview
of the plan?
A Under the new medium-term management plan, we willfurther accelerate the portfolio transformation. While striving
to strengthen our corporate constitution amid COVID-19, we
will prioritize allocation of management resources to leadingedge businesses such as E & I, PV, Medical, Pharma andSupplement where growth opportunities are expanding amid
the paradigm change, as well as new large-scale businesses
such as PHBH, OLED, and regenerative medicine and cell
GrowthStrategy

therapy. Kaneka has diverse businesses, diverse
technologies, and a multitude of Only One and Global No.1
technologies and products. While firmly positioning thesestrengths as our axis, we will strive to also make the most of
external resources such as open innovation and M&A tocreate high added value.
We will make leading-edge businesses a core pillar
driving Kaneka’s business performance. Focusing on

New large-scale businesses

Leading-edge businesses

Keys to growth(Priority
Businesses)

Core drivers of business performance
OLED

Biodegradable Polymer (PHBH)

Foundation businesses A strong platform supporting
the management basePharma: Expand the capacity of
KEGT to address infections

Medical: Build additional facilities
at the Vietnam plant

E & I: Materials for
5G applications

Highly unique, high-value-added products

The first half of the fiscal year

(Billions of Yen)
660

596.1

621.0

601.5

Fiscal year

(Billions of Yen)

560.0

45

Forecast

292.3

306.1

299.9

220

266.7

The first half of the fiscal year

Fiscal year

15.9

18.0

12.8

21.0

14

94th

FY2017▶ Ordinary
incomeK ANEK
A

95th

FY201896th

FY201997th

FY202094th

FY201795th

FY201896th

FY2019▶ Net income attributable to owners of parent

14.5

97th

20.2

15.9

Fiscal year

45

36.9

36.0

30
15

26.0
18.0

15.9

97th

Fiscal year

16.4

Forecast

9.7

7.0

FY2020The first half of the fiscal year

(Billions of Yen)

94th

FY202031.3

28Forecast▶ Operating income

12.8

21.0

Forecast

7.0

FY201795th

FY201896th

FY201997th

FY2020The first half of the fiscal year

(Billions of Yen)

Fiscal year

30

32.8
26.0

And finally, regarding the interim dividend, we havedecided on ¥50 per share. I thank you very much for yourcontinued support.

▶ Net income attributable to owners of parent

The first half of the fiscal year

(Billions of Yen)

36.0

0

0

96th

FY2019

42

36.9

15

95th

FY2018▶ Ordinary income

30

440

3

94th

FY2017▶ Operating income

highly-unique, high-added value special PVC and modifiers.
Right now, demand is rapidly recovering in the Materials
Solutions Unit, with especially sharp growth in demand for
paste PVC for disposable gloves in connection with
COVID-19.
We are forecasting net sales of ¥700 billion and operating
income of ¥53 billion in fiscal 2022 as a result of thesemeasures. The share of leading-edge and new large-scalebusinesses in overall operating income will increase from 25%
in fiscal 2019 to 50% in fiscal 2022, dramatically transforming
the business portfolio.

00Highlights of consolidated business performance▶ Net sales

infectious diseases, in Pharma, we will further expand facilities
at Kaneka Eurogentec S.A.(“KEGT”), where orders for
COVID-19 vaccines and treatments are growing rapidly. In
Medical business, we will increase the production capacity ofour plant in Vietnam to meet robust demand that is globally
growing, while aiming to expand the scope of our operations
in areas that can help address COVID-19, such as testingand diagnostics and medical devices. As a result, we will
greatly expand intervention business.
The COVID-19 pandemic is speeding up thesophistication of digital and telecommunications all at once.
With social implementation of 5G, EVs, and CASE advancing,our goal in E & I is to grasp market trends and develop
distinctive materials that contribute to the digital society andexpand business in the polyimide products, optical film,
optoelectronics fields.
In new large-scale businesses, especially PHBH, we needto accelerate social implementation, so are working with
▶ Net sales
global brand holders to develop applications. We plan to build
a commercial production
plant
to year
The first
halfandof thehope
fiscal to
yearbe able
Fiscal(Billions of Yen)announceitattheeariestpossible
time.
660
560.0
621.0
601.5
596.1
Meanwhile,in the foundation businesses,
we willbuild aForecaststrongplatform to support the management base. In Vinyls
440
and Chlor-Alkali and 306.1
Performance299.9
Polymers (MOD, MS),
292.3
266.7
where
220 the COVID-19 pandemic has temporarily eliminateddemand globally, we will focus on restoring the profitability of

4.0

0

94th

FY201795th

FY201896th

FY201997th

FY2020

10

22.2

21.6

20

9.6

14.0

10.7
6.0

0

94th

FY201795th

FY201896th

FY201910.0

Forecast

2.5

97th

FY2020K ANEK A

4

Business Performance by Segment
Earthology Chemical Solution／ Create a comfortable and sustainable living environment

Material Solutions Unit

Quality of Life Solutions Unit

Health Care Solutions Unit

Nutrition Solutions Unit

To support the advancement of life and the environment
by drawing out the richness of the materials

To produce the leading edge of the enhancement of
the quality of life through the power of materials

To create a world in where advanced medical means areavailable to as many people as possible

To re-innovate food and healthIn the Vinyls and Chlor-Alkali business, in 2Q, exports of general
PVC resins increased sharply to India and China after lockdowns
were lifted. Shipments of chlorinated PVC (CPVC) also began. Paste
PVC for hygiene gloves performed well, with the Malaysia plant
operating at full capacity. In 2Q, profits increased year on year.
In the Performance Polymers business, demand for modifiers
recovered in Europe, the U.S. and Asia as economic activity
restarted. Since the latter half of 2Q, sales volume has returned tothe previous year’s level.
Demand for modified silicone polymers recovered in Europe andthe U.S., in addition to demand for construction applications in
China. In 2Q, performance returned to the previous year’s level.
In Kaneka Biodegradable Polymer PHBH, conclusive work for
productivity increases and cost reductions continue to proceed
toward a decision on constructing a plant with a 20,000-t
production capacity.
The Material Solutions Unit recorded lower sales and profits thanprevious year.

In the Performance Fibers business, demand for hair accessories
and flame retardance materials for Africa and the U.S. slumped dueto the COVID-19 impact in 1Q. But demand for hair accessories inAfrica have been recovering every month since July. There havebeen delays in the recovery of demand for flame retardancematerials and pile for apparel applications.
In the Foam & Residential Techs business, spreads weremaintained for expanded polystyrene resin and extruded polystyrene
foam boards despite sluggish domestic demand. Polyolefin foam
products for automobiles, which had been falling behind, follow arecovery trend.
In the PV & Energy management business, sales ofhigh-efficiency photovoltaic module products for residences werefirm due to an increase in the adoption rate.
In the E & I Technology business, in 2Q, the shipments of
PIXEO products recorded an all-time high. This is because demand
for smartphones and materials for tablets and laptop PCs wasstrong due to increasing remote work population in connection with
the COVID-19 crisis. Sales increased for 5G products. New productdevelopment is also progressing steadily.
The Quality of Life Solutions Unit recorded lower sales andprofits than previous year.

In the Medical business, the domestic and overseas markets both
expanded. Coils for embolization of brain aneurysms, a new product,
performed well. Sales of this new product began in the U.S. in September
and have been contributing to earnings growth. Sales of a new blood
purification system for treatment of arteriosclerosis obliterans (ASO) arescheduled for 2021.
In the Pharma business, earnings rose sharply year on year, due tofactors such as the start of the supply of active pharmaceuticalingredients for Avigan® Tablet and Kaneka Eurogentec S.A.’s reagentsfor PCR tests. Kaneka Eurogentec S.A. has received a growing numberof inquiries from major global pharmaceutical companies, beginning withproduction of vaccine intermediates for AnGes, Inc. New facilities forenhanced biologics capacity started operation in October and will
make a positive contribution to earnings. Kaneka Eurogentec S.A. iscurrently considering implementing the next phase of capacity increaseat an early stage.
The Health Care Solutions Unit recorded higher sales and profits
than previous year.

Material Value Creator

Contributeto a rich life

Contributeto a plentiful,varied dietContributeto a rich life

5

Active Human Life Solution／ Supporting energetic and healthy living

K ANEK A

Contributeto energysaving

Quality of Life Pathfinder

Contributeto comfortablelivingMedical Edge Explorer

Contributeto healthContributeto medical
sophistication

Nutrition Value Chain Innovator

In the Supplemental Nutrition business, strong sales were posted forthe active form of coenzyme Q10 (Kaneka QH) due to increasingawareness of immunity enhancement in the U.S. The Group plans tostart selling lactic acid bacteria in Japan following the U.S. from autumn
2020. These lactic acid bacteria have proven effective in improving theintestinal environment.
In the Food & Agris business, sales of spice products were strong due
to an increase in home meals. Although demand for bread and confectionery
is on a recovery track, the pace of recovery has been slow due to the lack ofinbound tourism. The Group opened an online shop for Kaneka Group
products (supplements, dairy products, chocolate, spices). Progress is being
made on measures to add more value to the businesses such as expanding
sales through e-commerce.
The Nutrition Solutions Unit recorded lower sales and profits thanprevious year.
Contributeto a plentiful,varied dietContributeto a plentiful,varied dietContributeto a society
advancingin ageContributeto a rich life

Contributeto global
environmental
conservation

K ANEK A

6

Environment/ Energy

Food

Wellness

Theme ofthis Report

Wellness

The Company implements ESG management and aims for the goal of “Wellness First” to make the world healthy. We haveidentified three areas in which we can contribute to solutions for global crises as “Environment/Energy,” “Food,” and “Wellness.”

Feature :Solutions to Three Crises

Three Crises

Kaneka will concentrate its technologies toprovide solutions to global threats

The Company has identified three key areas where it can contribute to global crises: “Environment/Energy,”“Food,” and “Wellness.” In this feature, we pick up on the theme of Wellness to introduce a range of solutions
for COVID-19.

Response to Urgent Global Measures to Prevent Infection
There is still no clear end in sight to the current COVID-19
pandemic. However, the Company has actively moved to supply
PCR testing reagents and active pharmaceutical ingredients(APIs) for Avigan® Tablet since the virus started spreading.
In August 2020, we participated in a manufacturing system
for mass production of a DNA vaccine*1 being developed by
AnGes, Inc. and Osaka University. Our Group company, Kaneka
Eurogentec S.A., has received a contract for production of
vaccine intermediates. Kaneka Eurogentec S.A. has high level
cutting-edge technologies such as mRNA*2 and plasmid DNA*3

The biomedical contract development manufacturing site of Kaneka
Eurogentec S.A.

7

K ANEK A

and continues to handle a surge of inquiries for contracted
production of COVID-19 vaccine, the development of which has
been accelerated by pharmaceutical companies andbioventures.
In addition, in October 2020, our domestic Group company,
Kaneka Medix Corporation (Headquarters: City of Osaka;
President: Shozo Ishizaka), started sales of an RT-q PCR kit(product name: KANEKA Direct RT- q PCR Kit “SARS-CoV-2”),
able to detect COVID-19 within one hour to medical and testing
institutions.
With this newly launched testing kit, pre-treatment iscompleted by heat treatment only, as there is no need to purify
RNA*4 from the virus using samples taken from saliva or the topof the throat. Accordingly, the pretreatment that withconventional methods took around one hour is reduced toaround 5 minutes,
allowing the overall
time needed for the
PCR test to begreatly reduced towithin an hour.
PCR testing kit that can detect COVID-19
within one hour

Environment / Energy

Food

Wellness

Contributing to the Prevention of Infection among Medical and Food Workers
The current COVID-19 pandemic has created social issues not
only for those infected, but also in terms of preventing infection
among workers, such as frontline medical staff.
Demand for ultra-thin gloves to prevent COVID-19 infection
has been growing rapidly around the world, mainly for people
working in medicine and food industries. In Japan, limited
availability has caused prices to soar.
In this environment, the Company has continued to provide
a stable supply of Paste PVC, which is a material for hygienic
gloves. In this way, we are meeting expanding demand andcontributing to infection prevention and hygienecountermeasures.
Ultra-thin gloves made from Paste PVC, used by medical
professionals and others

Providing Optimal Solutions through Cross-organizational Systems
The Company aims to make optimal use of its diverse
technologies to promote unique social applications in a wide
range of fields. To this end, we have established an in-house
Infection Research Team to promote R&D into infection
countermeasures.
Kaneka is taking a wide range of measures to help solve thecoronavirus crisis, including the PCR test kit, the PCR reagents,
the manufacturing of a DNA vaccine intermediate, the supplyingof active pharmaceutial ingredients for Avigan® Tablet.
Looking ahead, the Company will bring together its various
technologies to assist patients and relevant staff, providing
various solutions such as innovative treatments that allow people
to spend their healthy, safe and secure lives. In doing so, we will
make the entire world healthier.
Sustainable Solutions for an Evolving World.

*1 A vaccine whereby introducing into the body plasmid DNA encoded with proteins from a part of the targeted pathogens (without using any dangerous pathogens),
the proteins are produced within the body, giving immunity against said pathogens.

*2 An RNA molecule that is transcribed genetic information of protein synthesis from DNA. It is expected to be used as vaccines and therapeutics.
*3 A general term for circular DNA molecules that exist outside the nucleus of bacteria such as E. coli and yeast, and that are passed down to daughter cells throughcell division.

*4 Refers to the genes characteristic of the new coronavirus. Through PCR testing, RNA viruses are amplified to detect infection.

K ANEK A

8

Topics

TOPICS

1

Nutrition
Solutions Unit

Strengthening the Development of High Value Added Dairy Products—Aiming to Combine Delicious Flavors with Health2

Health Care
Solutions Unit

Contributing to Better Quality of Life with Innovative Medical Technology—Increase in Medical Catheter Production Capacity and Development of
Adsorption Type Plasma Purification Device

Development of dairy products

Establishment of an Organic Dairy Farming Company

Production Capacity in Vietnam Increased

The Company entered the dairy product business in 2018.
We have been selling and extending our range of dairy
products, including the popular “Milk for Bread Lovers”
series, as well as “Belgian Yogurt Pur Natur,” acollaboration product made with our technical tie-up
partner Pur Natur Invest BVBA of Belgium, and “Pur NaturFermented Butter.” These products have earned a highreputation in the market andwe continue to expand
sales outlets such as
convenience stores andsupermarkets in addition to
our bakery store channel.
In addition, in the near
future we plan to launch a
new milk tea product in the“Milk for Bread Lovers”
series, and a healthThe highly-rated “Milk forconscious yogurt with the
Bread Lovers” series

In June 2020, together with Betsukai Milk World Co., Ltd.
(Location: Betsukai-cho, Notsuke District, Hokkaido;
President: Sadayuki Nakayama), we established Betsukai
Wellness Farm Co., Ltd., a company that will manufactureand sell organic raw milk*1. As an exclusively organic farm,
Betsukai Wellness Farm will engage in highly productive
organic dairy farming. Betsukai Wellness Farm’s organic
farm will go into operation in April 2021, and by 2022 weare aiming to acquire the organic JAS certification*2 inregard to raw milk. The raw milk on this farm will be fully
purchased by Kaneka and will be used to expand our
product line up to such organic dairy products as milk,butter and in particular yoghurt.
Japan’s dairy farming industry is currently under harshconditions. Our philosophy is to work with dairy farmers toconsider attractive dairy farming and promote sustainable
and circular dairy farming that takes into consideration
people, cows, and the environment.

In Japan and Vietnam, Kaneka
manufactures medical catheterssuch as endovascular treatment
catheters for cardiovascular,
peripheral vascular,
cerebrovascular disease,
medical catheters
gastroenterology intervention for
the treatment of gastrointestinal cancer*1 and electrode catheter
for irregular pulse test.
In order to meet strong and growing global demand, Kaneka
decided in June 2020 to increase the medical catheter
production capacity of Group subsidiary Kaneka Medical
Vietnam Co., Ltd. (Headquarters: Binh Duong, Vietnam;
President: Toshiyuki Mori). It will build a new plant adjacent to its
existing plant, roughly tripling its production capacity. The newplant is scheduled to go into operation from January 2022.

*1 Raw milk taken from cows that have been raised in an environment that

conforms to the standards of the organic JAS certification, which involves usingorganic feed among other practices. Raw milk taken as is from cows and not
subjected to processing and is a raw material for milk and dairy products.
*2 An organic food inspection certification system prescribed by the Ministry ofAgriculture, Forestry and Fisheries. It certifies agricultural and livestock
products that are produced without reliance on chemical substances suchas pesticides or chemical fertilizers.

active form of coenzyme
Q10.
Since October 2020, we
have set up a link to ouronline shop (https://www.
kaneka.co.jp/onlineshop/)on our official website.
Please try it.

An image of the new cow barnplanned for construction on theorganic dairy farm

Betsukai Town

Location of the organic dairy farming base, Betsukai Wellness Farm Co., Ltd.

K ANEK A

Development of a new Adsorption Type
Blood Purification Device
The Company has developed an adsorption type blood
purification device for treating a severe form of arteriosclerosis
obliterans (ASO) with ulcers*3 (Product name: RheocarnaTM) andacquired approval for its manufacture and sales in August 2020
with a view to starting sales in spring of 2021.
Due to the growing aging population and increasing
diabetes and chronic renal failure, which lead to the most severe
form, ASO patients are predicted to increase. The adsorption
type blood purification device developed by Kaneka works byselectively removing substances causing ASO symptoms andreturns purified blood to the body. This is now possible thanks
to the development of novel cellulose beads that adsorb thesubstances.
Looking ahead, Kaneka
will provide solutions that
contributed to minimallyinvasive treatments and blood
purification treatments,
thereby helping to improve
patients’ quality of life.

The adsorption type blood
purification device (product name:
RheocarnaTM)
Image of the new factory that will be built to increase production capacity

Pur Natur Fermented Butter, with arich aroma and milky feel

9

TOPICS

Populations are aging, especially in developed countries,
and the number of patients suffering from cardiac disease,cerebral disorders, and cancer is rising. Surgery using medical
catheters is a minimally invasive treatment approach*2 thatplaces less stress on patients, so the global market is expected
to grow. With this increase in production capacity, Kaneka willcontinue to actively launch new products.

*1 Cancer occurring in the gastrointestinal system, including theesophagus, stomach, small intestine, and large intestine*2 Treatments that place less stress on the body compared tosurgical treatments such as cranial or abdominal surgery*3 A disease that causes arteriosclerosis where stenosis andocclusion of lower limbs artery occurred, leading to impaired
blood flow (ischemia).

K ANEK A

10

Topics

TOPICS

Consolidated Financial Statements

3

Nutrition
Solutions Unit

Supporting Agricultural Production by Accelerating Researchand Development into Crop Breeding Based on Genome Editing

Genome editing tool

new organization, strengthen license business of geneengineering technology to seed companies, and conduct
research and development*3 of crop varieties with beneficial
agronomic traits like functionality and high yields under contract
with seed companies. Our future targets include seed businessof genome-edited crop varieties, which is expected to growrapidly.
Guided by its principle of “KANEKA Thinks Wellness First,”
Kaneka will utilize open innovation to accelerate provision ofsolutions of various global food problems, such as safe, secure,stable food supply.

● Dramatically accelerate crop breeding● Tissue culture process is nolonger necessary

editingHigh-precision gene modification
Germline

Integration

Facilities

96th

292.0
352.3
644.3
206.1
81.0
287.1
332.1
25.1
357.2
644.3

306.9
346.4
653.3
211.6
87.6
299.2
332.7
21.4
354.1
653.3

97th

96th

Accounts title

From April 1, 2020 to
September 30, 2020

From April 1, 2019 to
September 30, 2019

Net sales
Operating income
Ordinary income
Income before income taxes
Net income attributable toowners of parent

266.7
7.0
4.0
3.9

299.9
12.8
9.7
9.1

2.5

6.0

Useful cultivars

Accounts title

Kaneka’s unique plant breeding technology: iPB method● Total assets were ¥644.3 billion as of September

30, 2020, down ¥9.0 billion compared with
March 31, 2020, due to a decrease in notes andaccounts receivable-trade.
● Liabilities totaled ¥287.1 billion as of September
30, 2020, down ¥12.1 billion compared with
March 31, 2020, due to a decrease in notes
and accounts payable-trade.
● Net assets were ¥357.2 billion as of September
30, 2020, up ¥3.1 billion compared with March
31, 2020, due to an increase in valuationdifference on available-for-sale securities.
Points▶ Quarterly Consolidated Statement of Cash Flows (Summary) (Billions of Yen)

Networks

Points● Net sales decreased by ¥33.1 billion, or

11.1%, year on year.

● Operating income decreased by ¥5.8 billion,or 45.1%, year on year.

● Ordinary income decreased by ¥5.7 billion, or

58.5%, year on year.

● Net income attributable to owners of parent

decreased by ¥3.6 billion, or 59.0%, year on
year.

PointsMeristems
Apply to major crops

Current assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total Liabilities
Shareholders’ equity
OthersTotal net assets
Total liabilities and net assets

97th

As of September 30, 2020 As of March 31, 2020

▶ Quarterly Consolidated Statement of Income (Summary) (Billions of Yen)

● Advanced application to genome

Germinatingseed

Accounts title

Assets Liabilities Net assets

Kaneka Corporation has signed an agreement with Japan
Tobacco Inc. (“JT”) to acquire JT’s assets related to plantbiotechnology*1 in August 2020.
The objective of this asset acquisition is to significantly
accelerate research and development of crop genome editing
and to innovate conventional crop breeding, by taking advantage
of Kaneka’s core technology “In planta Genome Editing
Technology*2 ”(iPB method), which is highly efficient andapplicable to a wide range of commercial crop varieties, andJT’s state-of-the-art research facilities, global network with
Ag-bio industry and cutting-edge gene delivery technology.
Hereafter, we will accelerate research and development in a

▶ Quarterly Consolidated Balance Sheets (Summary) (Billions of Yen)

Technologies

Human
resources

JT’s business assets related to plant biotechnology*1 Breeding technology to introduce beneficial traits such as disease resistance into plants (tissue culture technology, gene delivery technology, etc.)*2 Technology for rapid crop breeding that enables gene modification without integrating the gene cassettes of genome editing technology into the plant chromosomes.
*3 Developing genome editing seed for requests from customers.

Net cash provided by (used in)operating activities
Net cash provided by (used in)investing activities
Net cash provided by (used in)financing activities
Cash and cash equivalents at
end of period

97thFrom April 1, 2020 to
September 30, 2020

96th

From April 1, 2019 to
September 30, 2019

28.2

16.2

△ 22.8△ 20.9

△ 3.0

△ 3.3

39.9

31.8

● Net cash provided by operating activitieswas ¥28.2 billion, mainly due to income
before income taxes and depreciation andamortization.
● Net cash used in investing activities amounted
to ¥22.8 billion, mainly due to the purchase ofproperty, plant and equipment.
● Net cash used in financing activities was ¥3.0
billion, mainly owing to cash dividends paid.
● As a result, cash and cash equivalents as of
September 30, 2020 totaled ¥39.9 billion.

* If you would like to find out more, please visit Kaneka’s website.
11

K ANEK A

K ANEK A

12

Corporate Data

Information for Shareholders（As of September 30, 2020）▶ Corporate Profile▶ Stock Information

Name

Total number of authorized shares

150,000,000 shares

Number of Shares Issued and Outstanding

68,000,000 shares

Tokyo Head
OfficeOsaka Head
Office1-12-32, Akasaka, Minato-ku, Tokyo
107-6028, Japan
TEL: +81-3-5574-8000
2-3-18, Nakanoshima, Kita-ku,
Osaka
530-8288, Japan
TEL: +81-6-6226-5050

Number of shareholders

22,976 shareholders

Average number of shares per shareholder

The Master Trust Bank of Japan, Ltd.(Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
Nippon Life Insurance Company
Sumitomo Mitsui Banking Corporation▶ Members of the Board and Audit & Supervisory Board members

13

Meiji Yasuda Life Insurance Company
Custody Bank of Japan, Ltd. (Trust Account No.4)

4,444
3,986
3,114
3,091
2,825
2,673
2,308
2,104
1,470
1,154

6.81
6.11
4.77
4.74
4.33
4.10
3.54
3.23
2.25
1.77

Chairman of the Board

Kimikazu Sugawara

President

Minoru Tanaka

Mitsui Sumitomo Insurance Company, Limited

Executive Vice President

Kazuhiko Fujii

BNYMSANV AS AGENT/CLIENTS LUX UCITS NON TREATY 1

Member of the Board,
Senior Managing Executive Officer

Shinichiro Kametaka

Kaneka Business Partner Shareholding Association

Member of the Board,
Senior Managing Executive Officer

Shinobu Ishihara

Member of the Board,
Managing Executive Officer

Katsunobu DoroMember of the Board,
Managing Executive Officer

Jun Enoki

Member of the Board,
Senior Managing Corporate Executive
Officer

Mamoru Kadokura

Independent Member of the Board

Takeo Inokuchi

Independent Member of the Board

Mamoru Mohri

Independent Member of the Board

Takao Kusakari

Independent Member of the Board

Jun Yokota

Audit & Supervisory
Board member (standing)Hideyuki Matsui

Audit & Supervisory
Board member (standing)Masami Kishine

Audit & Supervisory
Board member (outside)

Hiroshi Fujiwara■ Financial instruments firms
906 thousand shares （42 persons）

Audit & Supervisory
Board member (outside)

Yasuhiro Uozumi

Notes : 1. The numbers of Share Units Owned are rounded down to thousand of shares.
2. The numbers of Percentage are rounded to one decimal places.

K ANEK A▼ Top Page

MUFG Bank, Ltd.

▶ Memo for shareholders

April 1 to March 31

Ordinary Shareholders Meeting

Held in June

▶ Shareholder Composition

Record Dates

Ordinary Shareholders Meeting : March 31
Year-end dividend : March 31
Interim dividend : September 30

Transfer agent and shareregistrar and accountmanagement institution for
special accounts

Mitsubishi UFJ Trust and Banking Corporation■ Financial institution
35,554 thousand shares

18.2%
52.3%
20.3%

（76 persons）■ Foreign companies
13,780 thousand shares （313 persons）■ Individuals and others
12,400 thousand shares（22,280 persons）■Other companies
5,357 thousand shares （265 persons）

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

Material from the presentation
meeting for the new mediumterm management plan heldon October 5 is also provided.

Fiscal Year

1.3%

SearchThe website contains informationsuch as management policy,
business performance andfinancial information, IR materials,
and stock information.

Notes : 1. The numbers of Share Units Owned are rounded down to thousands of shares.
2. The Percentage of Total Shares Issued is calculated by using deducting numberof treasury shares from Number of Shares Issued and Outstanding androunded to two decimal places.
3. In addition to the above list, the Company maintains 2,762 thousand shares oftreasury stock.
4. Japan Trustee Services Bank, Ltd. changed its name to Custody Bank of Japan,
Ltd. on July 27, 2020.

7.9%

kaneka◀IR Information

Share Units
Percentage of
Owned(thousand Total Sharesshares)Issued(%)

Name of Shareholders

Paid-in Capital 33,046 million yen

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

Kaneka’s website provides clear, easy to use information to stakeholders such as
shareholders and investors.
We will continue to enhance the content of the website and to provide timely,
appropriate disclosure.

▶ Major Shareholders

Date ofSeptember 1, 1949
Establishment
Website2,960 shares▶ Kaneka’s Website

Cover art illustration: Asae Soya・Title: Sora
・Creation date: 2013

Notes : 1. Procedures such as changes of shareholder’saddress, requests to acquire shares, and soforth, are to be handled in principle by theaccount managing institution (securities
company, etc.) where the shareholder has anaccount. Please refer such requests to thesecurities company, etc., where you haveopened an account.
2. For related to shares registered in special
accounts, please inquire to the special
account managing institution on the left,
Mitsubishi UFJ Trust and Banking
Corporation. Such enquiries can be received
at Mitsubishi Trust and Banking Corporation
Head Office and branches.
3. Unclaimed dividends will be paid at the
Mitsubishi UFJ Trust and Banking Head Officeand branches.

K ANEK A

14