NewsNovember 5, 2020
KANEKA CORPORATION
2020 green bond annual reporting
On September 2019, Kaneka issued a green bond (their 7th unsecured straight corporate bond)for the purpose of raising funds for manufacturing facilities and research and development
related to Kaneka Biodegradable Polymer PHBH™ (referred to below as PHBH™).

It wasdecided that during the period starting from a year after the green bond was issued up until whenit’s repaid, there would be reporting conducted annually on the status of business development(specifically about the allotment of raised funds, acquirement of different certifications for
PHBH™, and examples of adopted usages), and a review would be undertaken by an externalorganization. The reporting for 2020 is as below.
1. Allotment of raised funds (as of end of September 2020)(unit: 1 million yen)Amount issued

Net amount *1

Amount allotted *2

Non-allottedremainder *3

5,000

4,970

4,442528*1: The net amount is the amount resulting after subtracting the issuing charges from the amount issued.
*2: Breakdown of the amount allotted:

Scheduled to beAllotted

Non-allottedallottedremainder

Facility funds

2,560

2,560－

R&D funds

910

382

528

1,500

1,500－

4,970

4,442

528

Facility and R&D funds
before green bond issuanceTotal*3 The non-allotted remainder is managed through cash or equivalents.

2. Acquirement of different certifications for PHBH™ and examples of adopted usages (datesmentioned are the dates of announcement)
・September 3, 2019 Listed in the Plastic Implement Measure of the European Commission
for all food types
Within all regions of the European Union, PHBH™ become able to beused with dry foods, for example as packaging for fruits andvegetables, as well as for contact with all foodstuffs, including usage
in straws, cups and cutlery.

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

News・October 31, 2019

Target area expanded for Seven Café straws made from PHBH™
Straws made from PHBH™ started to be used for “Seven Café” icecoffees and ice café lattes from Seven-Eleven Japan Co., Ltd.; first instores within Kochi Prefecture, which started using them from August,and then in around 10,000 stores in Hokkaido, Hokuriku, Kansai,Chubu, Shikoku, Kyushu and Okinawa.

・May 29, 2020Applied to straws for Seven Café's new lineup
8mm-diameter straws made from PHBH™ were adopted in the new“Seven Café” lineup “CAFÉ LATTE SWEETS” from Seven-Eleven JapanCo., Ltd., and they were introduced sequentially in 20,938 storesnationwide (as of April 2020).

・August 6, 2020

Used in Shiseido's cosmetics packages
PHBH™ was used in a product case for Shiseido Co., Ltd.’s new lip
palette (used in the casing’s main body and lid); the first time PHBH™
was used in the field of cosmetics.

The latest acquired certifications are posted on the Biodegradable Polymer PHBH™ feature
page on Kaneka’s homepage.
<About the external organization review>
Kaneka is scheduled to receive a regular review to assess their green bond from Rating andInvestment Information Inc. (referred to below as R&I), and the results will be publishedthrough R&I’s website*.
*The R&I website: https://www.r-i.co.jp/rating/esg/greenfinance/index.html＜Outline of the green bond＞
・ Name: Unsecured Straight Bond No. 7 of Kaneka Corporation (with special contract for
preventing disadvantages among multiple unsecured bonds)・Issue amount: 5 billion yen
・Issuance term: 5 years
・Issuance date: September 12, 2019
・Usage of funds: Costs for the manufacturing, research and development of PHBH™
・Acquisition rating: A（R&I）
Related links: Kaneka issues the first green bond by a chemical company in Japan
Kaneka to issue a green bondhttps://www.kaneka.co.jp/en/