Quarterly Consolidated Financial Results for the 3rd Quarter, Ended December 31, 2023
(Japanese GAAP)
February 8, 2024
Name of Listed Company: Kaneka Corporation
Stock Exchange Listing: Tokyo
Code Number:
4118
URL https://www.kaneka.co.jp/en/
Representative: Minoru Tanaka, President, Representative Director
Contact Person: Osamu Ishida, Managing Executive Officer – Investors & Public Relations Department
Phone: +81-3-5574-8090
Scheduled date for filing financial statements: February 13, 2024 Scheduled date of dividend distribution: －Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Financial Results for the 3rd Quarter, Ended December 31, 2023
(from April 1, 2023 to December 31, 2023)(1) Consolidated operating results(% indicates year-on-year change)
Net sales¥ million% ¥ million

564,728 (0.4)
567,143 11.5

Apr.1, 2023 – Dec. 31, 2023
Apr.1, 2022 – Dec. 31, 2022

income attributable
Ordinary income Net
to owners of parent

Operating income% ¥ million

21,611
27,621(21.8)(17.1)% ¥ million

19,351
26,601(27.3)(15.0)%

13,43818,890(28.9)(14.2)

Note: Comprehensive income: ¥28,437 million [2.3%] for the nine months ended December 31, 2023
¥27,794 million [1.6%] for the nine months ended December 31, 2022

Basic net income
Diluted net
per share
income per share¥¥

207.04286.61

Apr.1, 2023 – Dec. 31, 2023
Apr.1, 2022 – Dec. 31, 2022

206.45285.86(2) Consolidated financial position
Total assets¥ million

As of December 31, 2023
As of March 31, 2023

Net assets

850,620782,640¥ million

Equity ratio%

455,509436,42251.2
53.3

Reference: Equity (Shareholders’ equity + Accumulated other comprehensive income):¥435,175 million as of December 31, 2023
¥417,372 million as of March 31, 2023

2. Dividends
Annual dividends
1st Quarter 2nd Quarter 3rd Quarter¥¥¥

Year-end¥

Apr.1, 2022 – Mar. 31, 2023

－

55.00

－

Apr.1, 2023 – Mar. 31, 2024

－

55.00

－

Apr.1, 2023 – Mar. 31, 2024
(Forecasts)

Annual¥55.00

110.0055.00

110.00Note: Changes in dividend forecast during the quarter under review: None
3. Forecast for Consolidated Financial Results for the Fiscal Year Ending March 31, 2024
(from April 1, 2023 to March 31, 2024)(Percentage figures represent changes from the corresponding periods of the previous fiscal year)
Net income
Operating
Net income
Net sales
Ordinary income attributable toincomeper shareowners of parent¥ million

Full year

766,000% ¥ million

1.3

32,000% ¥ million(8.8)

28,700% ¥ million(11.5) 23,000

%¥

(0.0)

354.86

Note: Revisions to consolidated business performance forecasts during the quarter under review: Yes

※ Notes(1) Changes in principal subsidiaries during the term: None
(2) Application of simplified methods of accounting and specific accounting methods: None
(3) Changes in accounting principles, changes in estimates, or restatements
1. Changes owing to revisions in accounting standards: None
2. Changes other than 1. above: None
3. Changes in accounting estimates: None
4. Restatements: None
(4) Number of shares issued (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 outstanding during the period(calculated cumulatively from the beginning of the fiscal year):

December 31,

68,000,000

2023

sharesMarch 31, 2023

68,000,000

December 31,

3,086,253

March 31, 2023

3,106,2932023

shares

December 31,

64,908,638

December 31,

65,909,803

2023

shares2022

sharessharesshares※These financial statements are exempt from audit procedures to be performed by certified public
accountants or an audit firm.
※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 based on information currently available to the Company
and certain assumptions determined to be reasonable by the Company. For a variety of reasons,actual performance may differ substantially from 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)Earnings Forecasts and Other Forward-looking Statements” under “1. Quarterly Consolidated
Financial Results” on page 5.

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation (4118)

Supplementary Materials
Contents
1. Quarterly Consolidated Financial Results -------------------------------------------------------------- P. 2
(1) Operating Results -------------------------------------------------------------------------------------- P. 2
(2) Financial Position --------------------------------------------------------------------------------------- P. 4
(3) Earnings Forecasts and Other Forward-looking Statements -------------------------------- P. 5
2. Quarterly Consolidated Financial Statements and Main Notes --------------------------------- 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(Going Concern Assumption) ------------------------------------------------------------------------ P. 10(Notes in the Event of Significant Changes in the Amount of Shareholders’ Equity) --- P. 10(Segment Information) -------------------------------------------------------------------------------- P. 10-1-Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation（4118）

1. Quarterly Consolidated Financial Results(1) Operating Results➢

State of the Global Economy - Increasingly uncertain economic outlook During the first nine months (April 1 to December 31, 2023, “1-3Q”) of the fiscal year ending March 31,
2024, global divisions deepened alongside the continuing impact of geopolitical risks, including theprolonged Ukraine crisis and the escalating situation in the Middle East. Further, monetary tightening inEurope and the U.S. and the shrinking Chinese economy were hampering the global economic recovery.
Amid global inflation gradually easing and Western monetary policies reaching a turning point, demandsupply adjustments were continuing in many manufacturing industries, leaving the economic outlook
uncertain.

➢

Kaneka Group’s Business Performance - Sales and profits decreased Under these circumstances, Kaneka Group’s business performance for 1-3Q was as follows.
Consolidated net sales were ¥564,728 million (down 0.4% year-on-year), operating income was¥21,611 million (down 21.8% year-on-year), ordinary income was ¥19,351 million (down 27.3% year-onyear), and net income attributable to owners of parent was ¥13,438 million (down 28.9% year-on-year).
Under the continued severe demand environment, 3Q (October 1 to December 31, 2023) showed
recovery, with earnings above the level of 2Q (July 1 to September 30, 2023). The recovery of overseas
demands in E & I Technology and Performance Fibers was slower than expected, and a temporary
adjustment in demand continued in Health Care Solutions Unit (SU). Nutrition SU further expanded profits.
Portfolio transformation has been progressing steadily.
Business performance for the first nine months (April 1, 2023 to December 31, 2023) (Millions of yen)

FY2022
1-3Q(Apr.-Dec.)

FY2023
1-3Q(Apr.-Dec.)

Net sales

567,143564,728

Operating income

27,621

21,611

Ordinary income

26,601

19,351

Net income attributable toowners of parent

18,89013,438Difference(year-on-year)(2,415)(0.4%)(6,010)(21.8%)(7,249)(27.3%)(5,451)(28.9%)(Millions of yen)

Net sales by business segments
Net sales
FY2023Difference(year-on-year)

1Q

2Q

3Q

Total

Material SU

77,65978,81481,444

237,919

Quality of Life SU

40,87843,88046,638131,397

Health Care SU

17,74518,44817,20953,403

Nutrition SU

46,03746,00649,038141,082

419

226

280

925

182,740

187,376

194,611564,728

OthersTotal※SU：Solutions Unit

-2-

(12,788)(5.1%)
388
0.3%
751
1.4%
9,094
6.9%
137
17.5%
(2,415)(0.4%)

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation（4118）

Operating income by business segments(Millions of yen)
Operating income
FY2023

1Q

2Q

3Q

Difference(year-on-year)

Total

Material SU

5,513

6,610

6,996

19,119Quality of Life SU

2,939

4,159

4,655

11,754

Health Care SU

2,967

2,926

2,451

8,344

Nutrition SU

2,277

2,298

3,820

8,395

288

101

151

541

Adjustment(8,381)(9,093)(9,070)(26,545)

Total

5,603

7,002

9,004

21,611Others(3,351)(14.9%)(1,301)(10.0%)(3,636)(30.4%)
4,002
91.1%
146
37.0%
(1,869)(6,010)(21.8%)※SU：Solutions Unit

The operating performance by business segment was as follows:①

Material Solutions Unit
This unit recorded decreased sales and profits due to sluggish market conditions for Vinyls and Chlor-Alkali,
although Modifiers and Modified Silicone polymers recovered its demand despite continued stagnation in Europe
and the U.S.

➢

➢

➢

➢

For Vinyls and Chlor-Alkali, sales of both PVC and caustic soda remained weak due to the shrinking
Chinese economy and a decline in the Asian market. While the market is expected to take some time torecover, we are refining our specific technologies in global niche markets and strengthening our structure
to remain unaffected by fluctuations in raw materials and market conditions.
For Modifiers, demand for non-PVC products and PVC products in the Asian market have been on a steadyrecovery since 3Q, while the demand-supply adjustments for construction use are prolonged on the backof ongoing high inflation and high interest rates in Europe and the U.S.
The adoption of epoxy masterbatch (MX) has been growing for EV structural adhesives, and developments
for new applications are progressing.
For Modified Silicone polymers, sales and profits increased amid sluggish construction demand, thanks tostrong sales in response to its unique functional characteristics and successful improvement of profit margin.
On the back of sales expansion to new regions and applications, we are increasing production capacity in
Belgium as planned, to address the rising global demand.
For Green Planet, progress has been made in joint development and product launch with major brand holders
in Japan, the U.S., and Europe. As construction to increase capacity for large projects is progressing asplanned, we are focusing on building a supply chain that includes processing technology.

② Quality of Life Solutions Unit
This unit recorded increased sales but decreased profits due to delayed recovery in the smartphone market
and the African hair accessory market.
➢➢➢

For Foam & Residential Techs, although demand was weak, profit margin improved mainly through pricerevisions of expandable polystyrene beads. Demand is recovering for expanded polyolefin foam products inthe automotive sector, both in Japan and overseas, and its adoption in EV applications is expanding. Bothsales and profits increased overall.
For PV & Energy management, sales of high-efficiency photovoltaic modules for single home, multi-family
home are firm. With a focus also on development for in-vehicle applications and BIPV (Building IntegratedPV), we are strengthening our production capacity in anticipation of expanded adoption in the future.
For E & I Technology, although the smartphone market demand showed a gradual recovery, we are
expecting polyimide products to begin its strong recovery in 4Q (January 1 to March 31, 2024) or later.
Although there was a temporary demand adjustment for acrylic resins for large-screen TVs, demand for-3-

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation（4118）➢

polyimide varnishes for organic EL remained on track for growth.
For Performance Fibers, the African hair accessory market bottomed out in 1Q (April 1 to June 30, 2023), but
demand recovery was slower than expected and remained weak. The market highly evaluates our new highperformance products with light-weight, water-repellent, and anti-bacterial properties. We are focusing on efforts
to expand sales of these new products, along with extending sales channels to untapped regions in Africa.

③ Health Care Solutions Unit➢➢

This unit recorded increased sales but decreased profits due to longer-than-expected customer shipment
adjustments in Pharma, despite solid performance in Medical.
For Medical, the sales of blood purification devices and catheters were strong both domestically andinternationally. We have taken measures to strengthen our sales system in the U.S. market, which has the
big potential to expand our business. The construction of a production facility for blood purification devices in
Hokkaido (Japan) is proceeding as planned to start operation this spring. We will steadily launch innovativetechnologies planned for introduction and continue to bring high-value-added products to market. In addition,
we are expanding our lineup of catheter products with open innovation, such as by acquiring a company
with biodegradable magnesium stent technology and by importing and selling of stents used to retrieve
blood clots.
Pharma is experiencing longer-than-expected effects from customers' shipment adjustments in fields
including COVID-19 vaccines. For the Bio-CDMO business of Kaneka Eurogentec S.A., we focus on
acquiring a wide variety of new biopharmaceutical projects of various scale by taking advantage of the highreputation of plasmid technology. For mRNA, in addition to strengthening our production system to meetgrowing global demand, we will promote its adoption in therapeutics for genetic diseases and cancer. For
small molecule pharmaceuticals, we are moving ahead to acquire large projects in both domestic andoverseas markets based on our sales track record.

④ Nutrition Solutions Unit➢➢

This unit recorded substantial increases in both sales and profits owing to the continued strong performanceof Foods and Supplemental Nutrition. Solid performance is expected to continue into 4Q.
For Supplemental Nutrition, the sales of the active form of coenzyme Q10 remained firm in the U.S. andexpanded in Asia and Oceania, particularly for Chinese cross-border e-commerce. We will further aim tocreate new markets by reinforcing the strategic technology development and sales promotion of “Business
to Business” and “Business to Consumer”. For the probiotics business which leads to improved intestinal
environment and prevents presymptomatic disease, sales are also expanding. We are focusing on exploringnew markets in the U.S. where is the biggest market, and also China, Asia, Russia, Central and SouthAmerica, and reinforcing our production base.
For Foods, a shift to the sales of high-value-added products and improved profit margin largely contributed
to business performance. We will continue to enhance our marketing and product planning capabilities, andstrive to reinforce our business foundation. Moreover, we are expanding new high-value-added businesses
including organic dairy products such as yogurt. Kaneka Foods Corporation will improve profitability byaccelerating the digital transformation of its business.

(2)

Financial Position➢

Assets, Liabilities, Net Assets
At the end of 3Q of the current fiscal year, total assets were ¥850,620 million, up ¥67,980 million from theprevious fiscal year-end. This is due to an increase in inventory assets as well as in property, plant andequipment resulting from expanded capital investment and an increase in overseas group companies’
assets denominated in yen resulting from the weakening of yen.
Liabilities totaled ¥395,111 million, up ¥48,894 million, primarily reflecting an increase in loans payable andbonds payable.
-4-

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation（4118）

Net assets were ¥455,509 million, up ¥19,086 million, owing chiefly to an increase in foreign currencytranslation 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 51.2%.
(3)

Earnings Forecasts and Other Forward-looking Statements
The IMF has released its latest outlook for global GDP growth in 2024, projecting a 3.1% increase, up
0.2% from October 2023. The U.S. and emerging economies are forecasted to have positive growth rates
over October on the back of faster-than-expected easing of inflation, while Europe and Japan are
projected to experience negative growth rates, making the overall global economic trends difficult topredict.
In addition, the uncertainty in the Middle East is growing in severity, raising concerns about their potential
impact on the economy.
Despite this intensifying uncertainty in the global economy, we expect Health Care SU to, although
customers’ shipment adjustments may continue for Pharma, increase the sales of new products as its
engagement with customers in Pharma and Medical progress consistently.
Nutrition SU, composed of Foods and Supplemental Nutrition, is expected to continue contributing
significantly to business performance driven by steady progress in new business development combinedwith favorable profit margin.
As for the Material SU and QoL SU, demand-supply adjustments are to continue for Vinyls and ChlorAlkali, and the markets for E & I Technology and Performance Fibers are recovering at a more moderatepace than expected.
After bottoming out in 1Q, our overall performance has steadily recovered throughout 2Q and 3Q, andwe anticipate this trend to continue into 4Q.
We will remain committed to developing new products based on technological innovations andstrengthening our cost competitiveness.
Based on the business performance up until 3Q and the business environment outlook, we have revised
our forecast for consolidated business performance announced on November 9, 2023.
Revisions to the forecast for consolidated business performance for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

Net sales￥million

Previous forecast (A)Operating income

Ordinary income

Net income
attributable toowners of parent￥million￥million￥million

Net income
per share￥

779,000

35,50033,50026,000400.58Current forecast (B)766,000

32,00028,70023,000354.86

Difference (B-A)(13,000)(3,500)(4,800)(3,000)Difference (%)

(1.7)

(9.9)

(14.3)(11.5)

755,82135,08732,411

23,008(Reference:Year ended March 31, 2023)

Revisions to the forecast for business peformance by business segments
Net sales
Previous
forecast

Revisedforecast

332,000

324,600

Quality of Life SU

180,000

177,500

Health Care SU

79,00075,500

Nutrition SU

187,000

187,300

1,000

1,100

-

766,000

Adjustment
Total※SU：Solutions Unit

779,000

Previous
forecast

Difference

Material SU

Others(Millions of yen)

Operating income(7,400)(2.2%)(2,500)(1.4%)(3,500)(4.4%)
300
0.2%
100
10.0%

Revisedforecast

25,70025,90017,400

16,10016,00013,50012,00012,000

600

600

-

(36,200)(36,100)(13,000)(1.7%)

35,50032,000-5-

Difference

200
0.8%
(1,300)(7.5%)(2,500)(15.6%)
100(3,500)(9.9%)

349.59

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation (4118)

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)

FY2022

FY2023 3rd Quarter

As ofMarch 31, 2023

As ofDecember 31, 2023

AssetsCurrent assets
Cash and deposits

41,77445,434

Notes and accounts receivable-trade, and contract assets

170,154

180,202

Short-term investment securities

94-

Merchandise and finished goods

89,223

95,626Work in process

13,317

12,169Raw materials and supplies

65,574

68,161

Other

18,327

25,835

Allowance for doubtful accounts(1,502)(1,802)396,964

425,628

Buildings and structures, net

96,39996,514

Machinery, equipment and vehicles, net

107,829

106,569

Other, net

88,385

116,813

Total property, plant and equipment

292,615

319,897

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Goodwill

2,201

4,631

Other

13,987

13,950Total intangible assets

16,18918,581

Investment securities

57,422

66,607

Other

19,731

20,208

(283)

(303)

76,87086,513385,675

424,992

782,640

850,620

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-6-Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation (4118)(Millions of yen)

FY2022

FY2023 3rd Quarter

As ofMarch 31, 2023

As ofDecember 31, 2023

Liabilities
Current liabilities
Notes and accounts payable-trade

88,663

104,628

Short-term loans payable

116,491

123,197

Current portion of bonds payable
Income taxes payable
Provision

-

5,000

5,055

3,112

119

4

Other

47,91258,505

Total current liabilities

258,242

294,448

Bonds payable

10,00015,000Long-term loans payable

33,70637,961

Noncurrent liabilities

Provision

2,375

2,062

Net defined benefit liability

20,82920,112

Other

21,06325,526

Total noncurrent liabilities

87,974

100,663346,217395,11133,04633,046

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

32,24530,348Retained earnings

323,213329,496

Treasury stock(11,407)(11,333)

Total shareholders' equity

377,098

381,557

22,20429,231

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

(3)

(1)

11,543

18,128Remeasurements of defined benefit plans

6,529

6,259

Total accumulated other comprehensive income

40,27353,617622

648

Subscription rights to shares
Non-controlling interests

18,427

19,684

Total net assets

436,422455,509782,640

850,620

Total liabilities and net assets-7-

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation (4118)(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)

FY2022 3rd Quarter FY2023 3rd Quarter
From April 1, 2022
to December 31, 2022

From April 1, 2023
to December 31, 2023

Net sales

567,143564,728

Cost of sales

416,165

416,302

Gross profit

150,977

148,426

Selling, general and administrative expenses

123,355

126,814

Operating income

27,621

21,611Dividends income

1,607

1,694

Foreign exchange gains

1,993

930

Equity in earnings of affiliates

123

136

Other

742

897

4,466

3,659

1,339

2,476

Loss on retirement of noncurrent assets

1,142

1,191

Other

3,004

2,250

Total non-operating expenses

5,487

5,918

26,601

19,351-

2,443

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sale of businesses-

520

Total extraordinary income

-

2,964

Income before income taxes

26,601

22,316

Income taxes-current

6,223

6,335

Income taxes-deferred

761

1,373

Total income taxes

6,985

7,708

Net income

19,616

14,607

Net income attributable to non-controlling interests
Net income attributable to owners of parent

-8-

726

1,168

18,89013,438

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation (4118)

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

FY2022 3rd Quarter FY2023 3rd Quarter

Net income

From April 1, 2022
to December 31, 2022

From April 1, 2023
to December 31, 2023

19,616

14,607

732

7,027

7

2

6,971

7,069

465

(270)

1

0

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income

8,178

13,82927,79428,437

Comprehensive income attributable to owners of parent

26,646

26,782Comprehensive income attributable to non-controlling interests

1,148

1,654

Comprehensive income
Comprehensive income attributable to-9-Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation (4118)(3) Notes to the Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes in the Event of Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Segment Information)
I Term from April 1, 2022 to December 31, 2022
1) Sales and Income by Segment(Millions of yen)
Reportable Segment
Material
Solutions
Unit

Quality of Life Health Care
Solutions
Solutions
Unit
Unit

Nutrition
Solutions
Unit

Total

Others(Note 1)

Total

Adjustment

Amounts on
consolidated
financial statements(Note 2)

Sales
250,707

131,008

52,651

131,988566,355787

567,143－

567,143

246

25

－

40

312

844

1,156

(1,156)－

Total

250,953

131,033

52,651132,028

566,667

1,632

568,300(1,156)567,143

Segment profit

22,47013,056

11,981

4,393

51,902395

52,298(24,676)

27,621

Customers
Intersegment

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

51,902

Segment profit of Others395

Elimination of intersegment transactions

1

Corporate expenses (Note)(24,751)

Other adjustments

73

Operating income in the quarterly consolidated
statements of income

27,621

Note: Corporate expenses primarily are expenses for basic R&D that are not allocable to any reportablesegments.

- 10 -

Quarterly Financial Results for the 3rd Quarter, Ended December 31, 2023, Kaneka Corporation (4118)

ⅡTerm from April 1, 2023 to December 31, 2023
1) Sales and Income by Segment(Millions of yen)
Reportable Segment
Material
Solutions
Unit

Quality of Life Health Care
Solutions
Solutions
Unit
Unit

Nutrition
Solutions
Unit

Total

Others(Note 1)

Total

Adjustment

Amounts on
consolidated
financial statements(Note 2)

Sales
237,919

131,397

53,403141,082

563,802925

564,728－

564,728

176

30

－

30

237

855

1,093

(1,093)－

Total

238,095

131,427

53,403

141,113564,040

1,781

565,821(1,093)564,728

Segment profit

19,11911,754

8,344

8,395

47,614541

48,156(26,545)

21,611

Customers
Intersegment

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

47,614

Segment profit of Others541

Elimination of intersegment transactions

1

Corporate expenses (Note)(26,644)

Other adjustments

97

Operating income in the quarterly consolidated
statements of income

21,611

Note: Corporate expenses primarily are expenses for basic R&D that are not allocable to any reportablesegments.

- 11 -