This exchange offer or business combination is made for the securities of a foreign company. The offer is subject todisclosure requirements of a foreign country that are different from those of the United States. Financial statements
included in the document, if any, have been prepared in accordance with foreign accounting standards that may not becomparable to the financial statements of United States companies.
It may be difficult for you to enforce your rights and any claim you may have arising under the federal securities laws,
since the issuer is located in a foreign country, and some or all of its officers and directors may be residents of a foreigncountry. You may not be able to sue a foreign company or its officers or directors in a foreign court for violations of the
U.S. securities laws. It may be difficult to compel a foreign company and its affiliates to subject themselves to a U.S.
court's judgment.
You should be aware that the issuer may purchase securities otherwise than under the exchange offer, such as in open
market or privately negotiated purchases.

[Translation]

Information Disclosed Online
Related to the Notice of Convocation of the 88th Ordinary General Meeting of Shareholders

Content of the financial statements, etc. of
KANEKA CORPORATION for the last fiscal year

This information is posted on the Company’s website (https://www.cemedine.co.jp) pursuant to applicable laws andregulations and Article 15 of the Articles of Incorporation of the Company.

Attachments to the Notice of Convocation of the 98th Ordinary General Meeting of Shareholders
Business Report (From April 1, 2021 to March 31, 2022)
1. Current Status of Kaneka Group (the Corporate Group)(1) Business Progress and Results


The COVID-19 Pandemic and Ukraine Crisis - Honing Our Adaptability The Ukraine situation has tumbled deeper into chaos and has become a major disruptive factor in destabilizing the current
global situation. The shift in the global balance of power has jeopardized the structure of society throughresource/energy/food crises, supply chain disruptions and so on. The end of the COVID-19 pandemic is a long way off, thewar in Ukraine was added to the world’s concerns. The world has plunged headlong into completely unpredictable times.
The management will enhance the sensibility for managing the unexpected under control and hone our strengths in termsof adaptability to be able to respond to changing business environments promptly.



The Status of the Global Economy and Japan - Growing Concerns for Economic Recovery In the current fiscal year (April 1, 2021 to March 31, 2022), the global economy followed a recovery track, supported by
the acceleration in coronavirus vaccinations, easing of COVID-19 restrictions and fiscal and monetary policies of various
countries. However, surging prices for energy, materials, food and other resources triggered by the Ukraine issue areaccelerating the progress of inflation. The impact of sanctions against Russia is unclear, and there are concerns thatpersistently high prices could disturb the recovering economy. The business environment has become even more
uncertain. In Japan, the number of COVID-19 cases is yet to show a substantial decrease. The rising prices for energy,
food and living supplies as well as the shift to a weaker yen are causing many issues to be concerned that these could
derail the economic recovery in Japan.



Kaneka Group’s Business Performance - Increases in Sales and Profits, with Net Sales Achieving a Record High for
the Full Fiscal Year In this business environment, our business performance for the fiscal year ended March 31, 2022 resulted in significant
increases in sales and profits and was as follows. Consolidated net sales amounted to ¥691,530 million yen (up 19.8%
year on year), and operating income was ¥43,562 million yen (up 58.2% year on year). Ordinary income was ¥40,816
million yen (up 85.0% year on year). Net income attributable to owners of parent was ¥26,487 million yen (up 67.3%
year on year).

Business performance for the fiscal year ended Mach 31, 2022 (April 1, 2021 to March 31, 2022)

FY2020

FY2021

Net sales

577,426

691,530

Operating income

27,54443,562

Ordinary income

22,06640,816

Net income attributable toowners of parent

15,831

26,487(Millions of yen)

Difference(year on year)
114,103
19.8%
16,01758.2%
18,74985.0%
10,656
67.3%

Net sales and operating income by segment for the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)

Net sales
FY2020

FY2021

Difference

1Q

2Q

3Q

4Q

Total
(Apr.-Mar.)

Material SU

48,89455,58760,24065,787

230,50969,96770,922

76,347

82,670299,908

Quality of Life SU

29,73833,924

39,15938,153140,976

40,856

41,87843,40342,928169,067

Health Care SU

11,69812,756

14,06813,89952,422

13,22013,397

15,402

16,91558,936

Nutrition SU

35,93837,56041,06237,806

152,368

39,75339,72543,05440,020

162,554

373

241

238

296

1,149

308

236

240

277

1,062

126,644

140,069

154,769

155,942

577,426

164,106

166,160

178,449

182,813

691,530

Others
Total

1Q

2Q

3Q

4Q

Total
(Apr.-Mar.)

Total(Apr.-Mar.)69,39930.1%
28,091
19.9%
6,513
12.4%
10,1866.7%(87)(7.6%)
114,103
19.8%

Operating income
FY2020

FY2021

Difference

1Q

2Q

3Q

4Q

Total
(Apr.-Mar.)

1Q

2Q

3Q

4Q

Total
(Apr.-Mar.)

Material SU

2,855

4,518

6,465

9,433

23,272

9,311

8,652

8,303

10,11736,385

Quality of Life SU

1,236

2,692

4,439

2,281

10,650

4,586

4,737

4,460

3,158

16,942

Health Care SU

2,298

2,672

3,213

3,252

11,436

2,310

2,941

3,168

4,242

12,662

Nutrition SU

827

605

1,882

1,564

4,879

1,429

656

1,562

1,435

5,084

Others

248

92

98

158

598

177

73

98

151

501

Adjustment(5,436)(5,576)(5,844)(6,433)(23,291)(5,967)(5,894)(7,291)(8,861)(28,014)

Total

2,029

5,005

10,253

10,25627,544

11,848

11,167

10,301

10,24443,562

Total(Apr.-Mar.)
13,112
56.3%
6,292
59.1%
1,226
10.7%
205
4.2%
(96)
(16.1%)(4,723)16,017
58.2%※SU：Solutions Unit

Two Remarks on the Group-wide Business Performance- Driving Profit Growth through Both Overseas Operations and Portfolio Transformation (i) Successful Overseas Operations
In the current fiscal year ended March 31, 2022, the global economy is recovering well, and the overseas sales ratio
recorded an all-time high of 45%. Our operation performance managed from a “Global and Local” perspective emerged
successfully, serving as a major driving force behind substantial increases in sales and profits.
★ Overseas demands in material businesses, E & I Technology, Performance Fibers, Medical, Pharma, and Supplemental
Nutrition built up momentum far surpassing what was seen before the pandemic. The frontline execution capabilitiesof our global network (Head Quarters in 3 major geographical regions of the world) pushed up global sales
significantly.
★ We strove to expand spreads adroitly in response to historical surges in raw materials and fuel prices in the third quarter(October-December 2021; “3Q”) and fourth quarter (January-March 2022; “4Q”)(ii) Progress in the Portfolio Transformation
A positive economic cycle continues to evolve, with foundation businesses generating cash and leading-edge businesses
steadily increasing profits.
★ Regarding leading-edge businesses, sales grew steadily in the key business domains, which is reflected by solid sales
increases in the following areas: new products for blood purification systems and catheters in Medical, small
molecule pharmaceuticals and biopharmaceuticals in Pharma, and nutritional supplements for the U.S. market. Sales
were also brisk in Performance Polymers (MS) for Europe, the U.S., and Asia. Moreover, as the digital society rapidly
evolves, E & I Technology is expanding its sales for polyimide products used in smartphones and PCs as well as
resin for acrylic films used in large-screen TVs significantly. Sales increased for original high-efficiency photovoltaic
module products contributing to ZEH/ZEB due to the tailwind of growing demand for renewable energy aiming at
carbon neutrality. As a result, the profit of these leading-edge businesses grew steadily.

－3－

★ In foundation businesses, we received orders surpassing our production capacity in areas such as Vinyls and ChlorAlkali, Performance Polymers (MOD), and Performance Fibers. This shows we are capable of generating cash inthese fundamental businesses. Through these efforts, the transformation of our business portfolio is making steadyprogress.
Operating performance by business segment was as follows:(Earthology Chemical Solution)

Material Solutions Unit
-Material Value Creator to support the advancement of life and the environment by drawing out the richness of thematerials
 In Vinyls and Chlor-Alkali, demand continued to expand rapidly in Asian markets. The overseas market prices rose andcontributed to profit growth.
 In Modifiers, demand has been strong in Europe, the U.S., and Asia. Sales of non-PVC applications (automobiles, PCs andhome electronics) are growing globally. Our global supply chain consisting of 4 locations has displayed its strengths. Amid
global supply chain disruptions, we have turned pain into gain.
 In Modified silicone polymers, demand has continued to increase in Europe and the U.S. In addition, the business is
expanding into new markets – e.g. construction applications – with in Asia. In anticipation of surging demand going forward,
we will rapidly ramp up production capacity at each manufacturing site.
 For KANEKA Biodegradable Polymer Green Planet™, we decided to significantly increase production capacity in February
2022. We will improve productivity and reduce cost by accelerating new product development and introducing innovativetechnology for unique next-generation production process. We will drive the evolution of our production technology withthe aim of additional facility investment in the next phase. In Japan, the Plastic Resource Circulation Act has stimulated
major demand. Inquiries for cutlery applications and shopping bag applications from hotels, convenience stores and others
have increased rapidly. There are high expectations from national and local governments and other organizations that are
seeking to promote composting. Furthermore, there are major joint development projects with international brand holders
who have a strong interest in reducing their environmental impact.
(Earthology Chemical Solution)
Quality of Life Solutions Unit
-Quality of Life Pathfinder to produce the leading edge of the enhancement of the quality of life through the power ofmaterials
 In Foam & Residential Techs, expandable polystyrene resin and extruded polystyrene foam boards were heavily impacted
by factors such as surging raw material and fuel prices. Recovery in demand is slow for polyolefin foam as automobile
production continues to decrease globally. Tack Pack, which is used to transport COVID-19 vaccines safely at a lowtemperature, was adopted by local governments, contributing to society as a COVID-19 solution.
 In PV & Energy management, Japan’s energy security policy identifies the promotion of the widespread use of renewableenergy as a key topic. This topic has added impetus to efforts to increase the installation of solar photovoltaic power
generation systems. Sales of Kaneka’s residential high-efficiency photovoltaic module products increased due to a growing
load rate. Demand is also accelerating for “electricity generating windows (see-through photovoltaic modules)” and“electricity generating walls (wall-mounted solar panels)”, which are consonant with efforts to make zero-energy building(ZEB) more prevalent in society.
Following the Japanese government’s decision to grant subsidies for the development of high-performance perovskite
solar cells, which are expected to serve as next-generation solar cells, we will accelerate the development towards thepractical application.
 In E & I Technology, sales were strong concerning polyimide film and polyimide varnish for smartphones and OLED
displays as well as resin for acrylic film for large-screen TVs. Demand will grow further as the wave of digitalization
accelerates. It is imperative to develop a supply system to meet this growing demand. We are considering ramping up the
production capacity.
 In Performance Fibers, demand for hair accessory products for the African market has remained extremely strong anddemand for flame-retardant materials has followed a recovery path. The next phase of capacity upgrading is underconsideration in order to respond to further growth in demand.

(Active Human Life Solution)
Health Care Solutions Unit
Medical Edge Explorer to create a world in where advanced medical means are available to as many people as possible
 In Medical, a new blood purification device for the treatment of arteriosclerosis obliterans (ASO) has shown hightherapeutic effectiveness, resulting in a substantial increase in sales of this product. Regarding catheters, sales increased
significantly for products such as coils for embolization of brain aneurysms, mainly in overseas markets. In addition,
making the most of our rapid development capabilities, we launched PCR testing kits that can detect COVID-19 variants
at an early stage, helping to prevent the spread of infection.
In January 2022, we decided to build a new manufacturing site with cutting-edge technology for the production of
medical devices in Tomakomai, Hokkaido that realizes zero field operations. Automation and advancement will be
designed into the plant through process innovation. With this new plant, we will accelerate the global expansion of the
medical equipment business.
 In Pharma, particularly biopharmaceuticals, contract manufacturing of COVID-19 vaccines on expanded production lines
at Kaneka Eurogentec S.A. contributed to business results. Research reagents as well as testing and diagnostic services also
performed strongly. In small molecule pharmaceuticals, sales related to a large new project for an antiviral drug commenced
and contributed to business results.
(Active Human Life Solution)
Nutrition Solutions Unit
Nutrition Value Chain Innovator to re-innovate food and health In Supplemental Nutrition, sales of the active form of coenzyme Q10 were favorable, reflecting a heightened awareness of
the importance of increasing immunity. In Japan, the product lineup has been enhanced for the“Watashi no Chikara (MyEnergy)™” series of products containing the active form of coenzyme Q10. This series comprises foods with new function
claims. In the probiotics business, we will strengthen the production system in response to increased market recognition in
the U.S. and drive growth in sales.
 In Foods & Agris, there was a strong impact from large increases in prices of raw materials such as oils and fats.
“panmusubi,” a newly launched mall-type e-commerce site, has proven popular. Together with “Milk for Bread,”“Belgian
Yogurt” and “Q10 Yogurt,” we will strongly promote media strategies covering social media and other media channels.
Moreover, as the organic dairy farming and dairy products business currently underway in Betsukai-cho, Hokkaido has also
been met with strong popularity, we are currently considering enhancing the production system.
(2) Capital Expenditure

For this fiscal year, the total capital expenditure was 37,716 million yen.
The major facilities completed during this fiscal year were the new solar cell manufacturing facilities of Kaneka
Solartech Corporation and others. During this fiscal year, the Company decided to increase the capacity of thebiodegradable polymer manufacturing facilities at the Takasago Manufacturing Site and to build a new medical
equipment plant in Hokkaido.
(3) Financing
In this fiscal year, the required funds, such as capital expenditures and working capital, were appropriated from cash on
hand and borrowings.
(4) Issues to be AddressedAdaptability is the Keyword for Overcoming the Challenges of Uncertainty
In April 2022, the International Monetary Fund (IMF) lowered its forecast for global GDP growth in 2022 to 3.6%. The
IMF now expects global GDP growth to decelerate significantly. The world’s two major struggles, specifically the longfight against the COVID-19 pandemic and the war in Ukraine, are reflected in the outlook as having a strong negative
impact on overall global economic performance. With soaring food and energy prices, the world is likely to see the global
economic recovery trend start to lose steam. The change in economic conditions has been particularly notable since January2022.

In addition, there is no way in foreseeing the risk of natural disasters caused by global warming. The situation isunpredictable.
On the other hand, the evolution of science and technology and innovation are accelerating.
We are fully mobilizing chemistry’s power of transformation to ambitiously turn pain caused by the global change into
gain. We will preserve the global environment and contribute to the sustainable recovery of our humanity.
The continuous research and development efforts we have made over many years are starting to open the doors of possibility
and hope toward solving the world’s issues. Adaptability, which enables swift responses to change, is a matter of Kaneka’s
existence as a going concern.
Please look forward to what lies ahead for Kaneka.
An Excited and Exhilarated Trial & Error Experiment Driven Company
Foundation businesses are working to identify uncharted frontiers in existing business domains and develop newtechnologies from fresh perspectives.
We are making progress in transforming foundation businesses into leading-edge businesses.
Unknown worlds lie not only far beyond what we know, but they can also be found right at our feet.
The new domains that leading-edge businesses are trying to grow do not involve looking beyond the horizon and seeing
what is unknown. Our researchers do not stay in safe places they already know, but they make a habit of taking bold steps
beyond the horizon every day.
The boundless wonder and adventure of chemistry.
Both foundation businesses and leading-edge businesses are excited and exhilarated about the unknown and we are enjoying
the process of conducting experiments that expose them to the unknown. While remaining aware of the need to shiftdomains and move into new frontiers in these ways, Kaneka has continued to transform itself through unique technologies.
We will continue to attach great importance to Kaneka’s scientific mindset.
In the current fiscal year, the Performance Polymers (MS) Solutions Vehicle was included in leading-edge businesses.



We Continued to Pursue Human Driven Management This Year. We Will Strengthen This Approach.
Recently, one of the major changes in our hearts and minds has beenthat we have become strongly aware of the existence of the COVID-19
virus on a daily basis. We believe that viruses are also living creatures.
Additionally, carbon neutrality and global environmental issues havebeen simultaneously brought into focus, providing the opportunity for
the world to recognize that the realization of a sustainable society is ashared theme. These trends are initiatives to recover our humanity.
We have established a task force to serve as the Engine of Sustainability
Management. This new task force was created to ensure that ESG
management and “Well-ness First” health management are upgradedand implemented throughout the Kaneka Group.
The Engine of Sustainability Management will oversee and coordinate
8 real organizations, leading the formulation of action plans andvisualization for each organization. As part of efforts to realize human driven management, it will strengthen and accelerate
ESG management.

(5) Changes in Financial Position and Results of Operations
95th fiscal year
Classification

96th fiscal year

97th fiscal year

98th fiscal year
(Current period)

April 2018
From April 2019
April 2020
April 2021
( From
( From
( FromTo March 2019 ) ( To March 2020 )To March 2021 )To March 2022 )Net sales(million yen)

621,043

601,514577,426

691,530

Operating income(million yen)

36,041

26,01427,54443,562

Ordinary profit(million yen)

31,268

20,16622,06640,816

Profit attributableto owners of parent(million yen)

22,23814,003

15,831

26,487

Earnings per share(yen)

339.15214.70242.68406.01

Total assets(million yen)

659,587

653,262

667,429

726,959

Net assets(million yen)360,726

354,094

381,040

412,204(yen)

5,166.88

5,082.08

5,473.85

5,934.36

Net assets per share(Note) 1.The amount is rounded down to the nearest unit.
2.Earnings per share is calculated based on the average number of issued shares during the period, and net assets per share is
calculated based on the number of issued shares at the end of the period.

(6) Status of Principal Subsidiaries (as of March 31, 2022)
Company name

Capital amountCompany’s
investment ratio

Tatsuta Chemical Co., Ltd.

300 million yen

84.53 (%)

Showa Kasei Kogyo Co., Ltd.

62 million yen

71.37

Processing and sales of PVC compounds

Tobu Chemical Co., Ltd.

200 million yen

72.75

Processing and sales of polyvinyl chloride, etc.

Cemedine Co., Ltd.

3,050 million yen

54.77

Manufacturing and sales of adhesives, sealants, etc.

Main business
Processing and sales of polyvinyl chloride, etc.

Hane Co., Ltd.

40 million yen

100

Sales of expandable plastics and products

Kaneka Kentech Co., Ltd.

30 million yen

100

Sales of construction materials, etc.

Kaneka Foam Plastics Co., Ltd.

60 million yen

100

Processing and sales of expandable plastics and products

Kaneka Solartech Corporation

600 million yen

100

Manufacturing of solar cells

Kaneka Medix Corporation

450 million yen

100

Manufacturing and sales of medical devices

Osaka Synthetic Chemical Laboratories, Inc.

35 million yen

100

Manufacturing and sales ofpharmaceutical materials and API
Sales of foods

small

Kaneka Foods Corporation

200 million yen

100

Kaneka Sun Spice Corporation

200 million yen

100

Manufacturing and sales of spices

Taiyo Yushi Corporation

120 million yen

71.79

Manufacturing and sales of oils and fatsmolecule

Kaneka Hokkaido Co., Ltd.

10 million yen

100

Headquarters company in Hokkaido

Kaneka Europe Holding Company N.V.

58 million euro100

Headquarters company in Europe

Kaneka Belgium N.V.

23 million euro(90)

Manufacturing and sales of performance polymers andexpandable plastics and products

Kaneka Eurogentec S.A.

31 million euro(100)

Development,
manufacturingbiopharmaceuticals

Kaneka Americas Holding, Inc.

212 million dollar

100

Headquarters company in the Americas

Kaneka North America LLC

166 million dollar(100)

Manufacturing and sales of specialty PVC resins,functional resins, electronic materials, and functional
foodstuffs

Kaneka Singapore Co. (Pte) Ltd.

16 million Singapore
dollar100

Manufacturing and sales
pharmaceutical materials

and

of

sales

small

of

molecule

Kaneka (Malaysia) Sdn. Bhd.

342million ringgit

100

Manufacturing and sales of performance polymers

Kaneka Paste Polymers Sdn. Bhd.

45 million ringgit

100

Manufacturing and sales of specialty PVC resins

Kaneka Eperan Sdn. Bhd.

16 million ringgit

100

Manufacturing and sales of expandable plastics andproducts

Kaneka Apical Malaysia Sdn. Bhd.

289 million ringgit

100

Manufacturing and sales of electronic products

Kaneka Innovative Fibers Sdn. Bhd.

160 million ringgit

100

Manufacturing of synthetic fibers

Kaneka MS Malaysia Sdn. Bhd.

68 million ringgit

100

Manufacturing and sales of performance polymers

Kaneka Asia Co., Ltd.

13 million CNY

100

Headquarters company in Asia

HiHua Fiber Co., Ltd.

269 million CNY

100

Manufacturing of synthetic fibers

Kaneka Eperan (Suzhou) Co., Ltd.

48 million CNY

100

Manufacturing and sales of expandable plastics andproducts

(Note) 1.Kaneka Belgium N.V. and Kaneka Eurogentec S.A. are subsidiaries of Kaneka Europe Holding Company N.V. Therefore, for“Company’s investment ratio” in the both companies, the ratio of indirect holdings of the both companies is shown inparentheses.
2.Kaneka North America LLC is a subsidiary of Kaneka Americas Holding Inc. Therefore, for “Company’s investment ratio” inthe company, the ratio of indirect holdings of Kaneka North America LLC is shown in parentheses.
3.Including the above-mentioned principal consolidated subsidiaries, the Company has 90 consolidated subsidiaries and 3 equitymethod affiliates.

(7) Principal Business (as of March 31, 2022)
Main products that belong to each segment are as follows:
Segment

Business Unit

(Solutions Unit)(Solutions Vehicle)
Vinyls and Chlor-Alkali SV

Material
Solutions Unit

Performance Polymers (MOD) SV
Performance Polymers (MS) SV

Main products
General PVC resins, Caustic soda,
Specialty PVC resins
Modifiers, Epoxy masterbatch,
Biodegradable polymers
Modified silicone polymers
Expandable polystyrene resins and products,
Extruded polystyrene foam boards,

Foam & Residential Techs SV

construction) products

Solutions Unit
E & I Technology SV
PV & Energy management SV

Solutions Unit

Solutions Unit

Polyimide films, Optical materials,
Graphite sheets
Photovoltaic modules,
Energy storage batteries for residences

Performance Fibers SV

Acrylic synthetic fibers

Medical SV

Medical devices

Pharma & Supplemental Nutrition

Small molecule pharmaceutical materials,(Pharma)API, Biopharmaceuticals

Pharma & Supplemental Nutrition
Nutrition

Solar circuit construction method(external insulation and double ventilation

Quality of Life

Health Care

Extruded polyolefin foam,(Supplemental Nutrition)

Functional foodstuffs
Margarine, Shortening, Bakery yeast, Spices,

Foods & Agris SV

Antifreeze materials, Dairy products,
Functional fertilizers and feeds

(8) Principal Offices and Manufacturing Sites (as of March 31, 2022)
a. The Company
Name
Head Offices

Location
Minato-ku, Tokyo

Tokyo Head OfficeOsaka Head Office (Registered Head Office)Osaka City, Osaka

Sales Office
Nagoya Sales Office

Nagoya City, Aichi

Manufacturing Sites
Takasago Manufacturing Site

Takasago City, Hyogo

Osaka Manufacturing Site

Settsu City, Osaka

Shiga Manufacturing Site

Otsu City, Shiga

Kashima Manufacturing Site

Kamisu City, Ibaraki

Research Institutes
Material Solutions New Research Engine

Settsu City, Osaka

Electronics Research Laboratories

Settsu City, Osaka

Regenerative Medicine and Cell Therapy Laboratories

Kobe city, Hyogo

Photovoltaic & Thin Film Device Research Laboratories

Settsu City, Osaka

Engineering Research Laboratories

Takasago City, Hyogo

Process Development Research Laboratories

Settsu City, Osaka, and Toyooka City, Hyogo

Green Planet Technology Laboratories

Settsu City, Osakab. Subsidiaries
Name

Location

Domestic regional headquarter
Kaneka Hokkaido Co., Ltd.

Sapporo City, Hokkaido

Domestic production baseKaneka Solartech Corporation

Toyooka City, Hyogo

Domestic sales baseHane Co., Ltd.

Nagoya City, Aichi

Kaneka Kentech Co., Ltd.

Chiyoda-ku, Tokyo

Kaneka Foods Corporation

Shinjuku-ku, Tokyo

Domestic production bases and sales bases
Tatsuta Chemical Co., Ltd.

Koga City, Ibaraki

Showa Kasei Kogyo Co., Ltd.

Hanyu City, Saitama

Tobu Chemical Co., Ltd.

Joso City, Ibaraki

Cemedine Co., Ltd.

Shinagawa-ku, Tokyo

Kaneka Foam Plastics Co., Ltd.

Bunkyo-ku, Tokyo

Kaneka Medix Corporation

Osaka City, Osaka

Osaka Synthetic Chemical Laboratories, Inc.

Nishinomiya City, Hyogo

Kaneka Sun Spice Corporation

Osaka City, Osaka

Taiyo Yushi Corporation

Yokohama City, Kanagawa

Overseas headquarters
Kaneka Europe Holding Company N.V.

Zaventem, Belgium

Kaneka Americas Holding, Inc.

Texas, USA

Kaneka Asia Co., Ltd.

Shanghai, China

Overseas production bases and sales bases
Kaneka Belgium N.V.

Antwerp, Belgium

Kaneka Eurogentech S.A

Liege, Belgium

Kaneka North America LLC

Texas, USA

Kaneka Singapore Co. (Pte) Ltd.

Singapore

Kaneka (Malaysia) Sdn. Bhd.

Pahang, Malaysia

Kaneka Paste Polymers Sdn. Bhd.

Pahang, Malaysia

Kaneka Eperan Sdn. Bhd.

Pahang, Malaysia

Kaneka Apical Malaysia Sdn. Bhd.

Pahang, Malaysia

Kaneka Innovative Fibers Sdn. Bhd.

Pahang, Malaysia

Kaneka MS Malaysia Sdn. Bhd.

Pahang, Malaysia

HiHua Fiber Co., Ltd.

Shandong Province, China

Kaneka Eperan (Suzhou) Co., Ltd.

Jiangsu Province, China

Overseas research baseKaneka US Innovation Center

California, USA(9) Status of Employee (as of March 31, 2022)
a. Status of Employee of Kaneka Group
Segment (SU)

Number of employees

Increase or decrease from the end of
previous consolidated fiscal year

Material Solutions Unit

2,968

46

Quality of Life Solutions Unit

2,674

6

Health Care Solutions Unit

1,775

70

Nutrition Solutions Unit

2,044

10

Others103

1Group-wide (Common)

1,771

Total

11,335△70
63(Note) “Others” refers to non-life insurance and life insurance agency services that are not included in the business segment.

b. Status of Employee of Kaneka
Number of employees

Increase or decrease from the end of
previous consolidated fiscal year
△79

3,472

Average ages

Average years of
employment

41 years and17 years and4 months of age

7 months(10) Principal Lenders (as of March 31, 2022)
Lenders

Amount of Borrowing (million yen)

Sumitomo Mitsui Banking Corporation

46,022

Bank of Tokyo-Mitsubishi UFJ, Ltd.

27,547

Nippon Life Insurance Company

12,300Meiji Yasuda Life Insurance Company

7,850(Note) The amount is rounded down to the nearest unit.

(11) Others
The Company and Cemedine Co., Ltd. (“Cemedine”) resolved at their respective board of directors meetings held on May
12, 2022 to conduct a share exchange (the “Share Exchange”), in which the Company will become the wholly-owningparent company through the share exchange, and Cemedine will become the wholly-owned subsidiary. They concluded ashare exchange agreement (the “Share Exchange Agreement”) dated as of May 12, 2022.
The Share Exchange is scheduled to take effect on August 1, 2022 after the approval for the Share Exchange Agreement isobtained at the Ordinary General Meeting of Shareholders of Cemedine, which is scheduled to be held on June 12, 2022.

2. Matters Regarding Shares of the Company(1) Total Number of Authorized Shares(2) Total Number of Issued Shares(3) Number of Shareholders(4) Major Shareholders (Top 10)

150,000,000 shares
68,000,000 shares (including 2,761,323 treasury shares)
21,191 persons

Name of Shareholders

Share Unites Owned

Percentage of Total Share(thousand shares)

Issued (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

8,801

13.49

Custody Bank of Japan, Ltd. (Trust account)

3,363

5.15

Nippon Life Insurance Company

3,114

4.77

Sumitomo Mitsui Banking Corporation

3,091

4.74

Meiji Yasuda Life Insurance Company

2,825

4.33

Custody Bank of Japan, Ltd. (Trust account 4)

2,689

4.12

Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,308

3.54

Mitsui Sumitomo Insurance Co., Ltd.

2,104

3.23

1,475

2.26

BNYMSANV AS AGENT / CLIENTSLUX UCITS NON TREATY 1

Kaneka Business Partner Shareholding Association
1,220
1.87
(Note) 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 number of treasury shares from Number of Shares
Issued and Outstanding and rounded to two decimal places.
3.In addition to the above list, the Company maintains 2,760 thousand shares of treasury stock.

(Stock Distribution by Owner)
1.6%

Financial Institutes
34,702,000 shares (62 persons)

7.3%

Foreign Legal Entities, etc.
15,551,000 shares (352 persons)

17.2%
51.0%
22.9%

Individuals and Others
11,682,000 shares (20,456 persons)
Other Legal Entities
4,990,000 shares (267 persons)Financial Instrument Business
Operators
1,073,000 shares (45 persons)(Note) 1.The numbers of Share Units Owned are rounded down to thousands of shares.
2.The numbers of Percentage are rounded to one decimal places.

3. Matters Regarding Stock Acquisition Rights of the Company(1) Status of Stock Acquisition Rights Granted to the Company’s Directors as Remuneration for the Execution of Duties
at the End of the Current Fiscal YearClass and number ofshares to be issued ortransferred upon
exercise of the stockacquisition rights

Payment
amount per
share

Exercise
price pershare

Exercise period

NameCategory and numberof holders

Number ofstockacquisitionrightsKaneka 1st
Stock Option

Company Director,
1

3

Common stock
600 shares

4,415 yen

1yen

September 11, 2007 to
September 10, 2032

Kaneka 2nd
Stock Option

Company Director,
1

12Common stock
2,400 shares

3,000 yen

1yen

August 12, 2008 to
August 11, 2033

Kaneka 3rd
Stock Option

Company Director,
1

11

Common stock
2,200 shares

3,110 yen

1yen

August 12, 2009 toAugust 11, 2034

Kaneka 4th
Company Directors,
Common stock
August 11, 2010 to
13
2,280 yen
1yen
Stock Option22,600 shares
August 10, 2035th
Kaneka 5
Company Directors,
Common stock
August 11, 2011 to
15
2,060 yen
1yen
Stock Option2
3,000 shares
August 10, 2036
Kaneka 6th
Company Directors,
Common stock
August 10, 2012 to
18
1,815 yen
1yen
Stock Option
33,600 shares
August 9, 2037
August 10, 2013 to
Kaneka 7th
Company Directors,
Common stock21
2,790 yen
1yen
August 9, 2038
Stock Option
34,200 shares
Kaneka 8thCompany Directors,
Common stock
August 12, 2014 to37
2,510 yen
1yen
Stock Option
47,400 shares
August 11, 2039
Kaneka 9th
Company Directors,
Common stock
August 12, 2015 to41
4,735 yen
1yen
Stock Option
58,200 shares
August 11, 2040
Kaneka 10th
Company Directors,
Common stock
August 10, 2016 to
48
3,605 yen
1yen
Stock Option
69,600 shares
August 9, 2041
st
Kaneka 11
Company Directors,
Common stock
August 10, 2017 to56
3,380 yen
1yen
Stock Option
6
11,200 shares
August 9, 2042
Kaneka 12ndCompany Directors,
Common stock
August 10, 2018 to56
4,900 yen
1yen
Stock Option
6
11,200 shares
August 9, 2043
Kaneka 13rd
Company Directors,
Common stock
August 10, 2019 to63
2,957 yen
1yen
Stock Option
812,600 shares
August 9, 2044
Kaneka 14th
Company Directors,
Common stock
August 14, 2020 to75
2,138 yen
1yen
Stock Option
8
15,000 shares
August 13, 2045th
Kaneka 15
Company Directors,
Common stock
August 13, 2021 to75
3,997 yen
1yen
Stock Option
8
15,000 shares
August 12, 2046
(Note) 1.The outline of the main conditions for exercising stock acquisition rights is as follows.
(1) When the stock acquisition rights holder exercises the stock acquisition rights, the holder shall exercise all of the allotted
stock acquisition rights, and cannot exercise only a part of them.
(2) When a stock acquisition right holder loses the position of a director or executive officer of the Company within the period
in which the stock acquisition right can be exercised, the holder may exercise the stock acquisition rights only during theperiod from the day following the day when the position is lost to the day when 10 days have passed.
(3) Pledge and any other disposal of stock acquisition rights are not permitted.
2.The Company conducted a reverse stock split of five common stocks with one on the effective date of October 1, 2018. As aresult, the “Class and number of shares to be issued or transferred upon exercise of the stock acquisition rights” and “Payment
amount per share” of the above-mentioned 1st to 12th stock options have been adjusted.
3.The company directors in the table are the directors of the Company excluding outside directors.

(2) Status of Stock Acquisition Rights Granted to the Company’s Employees for the Current Fiscal Year

Name

Category and numberof holders

Number ofstockacquisitionrightsClass and number ofshares to be issued ortransferred upon
exercise of the stockacquisition rights

Payment
amount per
share

Exercise priceper share

Exercise period

Executive Officers(excluding directors
Common stock
August 13, 2021 to71
3,997 yen
1yenof the Company),
14,200 shares
August 12, 2046
26
(Note) 1. The outline of the main conditions for exercising stock acquisition rights is as follows.
(1) When the stock acquisition rights holder exercises the stock acquisition rights, the holder shall exercise all of the allotted
stock acquisition rights, and cannot exercise only a part of them.
(2) When a stock acquisition right holder loses the position of a director or executive officer of the Company within the period
in which the stock acquisition right can be exercised, the holder may exercise the stock acquisition rights only during theperiod from the day following the day when the position is lost to the day when 10 days have passed.
(3) Pledge and any other disposal of stock acquisition rights are not permitted.
Kaneka 15th
Stock Option(3) Other Important Matters Regarding Stock Acquisition Rights
Not applicable.

4. Matters Regarding Directors and Auditors of the Company(1) Name of Directors and Company auditors (as of March 31, 2022)
Positon
Chairman of the Board andRepresentative Director
President and Representative
Director

Name
Kimikazu Sugawara
Minoru Tanaka

Director and Executive Vice
President

Kazuhiko Fujii

Director and Senior Managing
Executive Officer

Shinichiro Kametaka

Director and Senior Managing
Executive Officer

Shinobu Ishihara

Director and Managing
Executive Officer

Katsunobu DoroDirector and Managing
Executive Officer
Director and Senior Managing
Corporate Executive Officer

Responsibilities or important concurrent positions

Jun Enoki
Mamoru Kadokura

In charge of Overall Business, Health Care Solutions Unit,
Supplements, E&I Technology Solutions Vehicle, New
Business Development and United States businessIn charge of Corporate Staff, Material Solutions Unit,
Chemicals Purchasing, Human Resources and ESG
Promotion (vice in charge)
In charge of Investor & Public Relations, Legal Affairs,
Accounting and Finance and IoT Solutions CenterIn charge of PV & Energy management Solutions Vehicle
and President and Director of Kaneka Americas Holding,Inc.
In charge of Nutrition Solutions Unit and General
Manager of Foods & Agris Solutions Vehicle
In charge of Research and Security and General Manager
of Material Solutions New Research Engine

Director (Outside)

Takeo Inokuchi

Outside Director, Kikkoman Co., Ltd.

Director (Outside)

Mamoru Mohri

Honorary Director, Japan Science and Technology
Agency, National Research and Development Corporation,
National Museum of Emerging Science and Innovation
Chairman of the Japan Water Awards Committee

Director (Outside)

Takao Kusakari

Outside Director, Japan Oil Transportation Co., Ltd.

Director (Outside)

Jun Yokota

Company auditor

Hideyuki Matsui

Full-TimeCompany auditor

Masami Kishine

Full-TimeCompany auditor (Outside)

Hiroshi Fujiwara

Attorney at law

Company auditor (Outside)

Yasuhiro Uozumi

Attorney at law(Note) 1.Mr. Takeo Inokuchi, Mr. Mamoru Mohri, Mr. Takao Kusakari and Mr. Jun Yokota are Outside Directors as stipulated in Article
2, Item 15 of the Companies Act. Mr. Hiroshi Fujiwara and Mr. Yasuhiro Uozumi are Outside Company auditor as stipulated
in Article 2, Item 16 of the Companies Act. The Company designates Mr. Takeo Inokuchi, Mr. Mamoru Mohri, Mr. Takao
Kusakari, Mr. Jun Yokota, Mr. Hiroshi Fujiwara and Mr. Yasuhiro Uozumi as Independent Director/Auditor and submit thestatement to that effect to the Tokyo Stock Exchange, Inc.
2.Mr. Masami Kishine has many years of experience in the accounting department of the Company and has considerable
knowledge of finance and accounting.
3.As of July 1, 2021 during the current fiscal year, “Responsibilities or important concurrent positions” of the directors has beenchanged as follows.
PositonDirector and Senior
Managing Executive Officer

Name

Shinichiro Kametaka

Before the change
In charge of Corporate Staff,
Material Solutions Unit,
Chemicals Purchasing, Human
Resources and ESG Promotion(vice in charge) and General
Manager of Human Resources

After the change
In charge of Corporate Staff,
Material Solutions Unit,
Chemicals Purchasing, Human
Resources and ESG Promotion(vice in charge)As of April 1, 2022, position and role of the directors has been changed as follows.
PositonName

Director and Executive Vice
President

Kazuhiko Fujii

Director and Executive Vice
President

Shinichiro Kametaka

Director and Senior Managing
Executive Officer

Shinobu Ishihara

Director and Managing
Executive Officer

Jun Enoki

Director and Managing
Executive Officer

Mamoru Kadokura

Responsibilities or important concurrent positions
In charge of Overall Business, E&I Technology Solutions Vehicle,
Global, and New Business Development
In charge of Material Solutions Unit, Chemicals Purchasing,
Human Resources and General Manager of Task Force“Sustainability (SX) Department”
In charge of Accounting and Finance and Investor RelationshipInchargeofNutrition
Solutions
Unit, Foods &Agris Solutions Vehicle, Healthy Foods Strategic Unit, Internal
control and Group Companies Support
In charge of Research and Security and General Manager ofGreen Planet Promotion(2) Outline of Limited Liability Agreement
The Company entered into a contract with Mr. Takeo Inokuchi, Mr. Mamoru Mohri, Mr. Takao Kusakari, Mr. Jun Yokota,
Mr. Hiroshi Fujiwara and Mr. Yasuhiro Uozumi to limit the liability of each of them in relation to the liability for damages
set forth in Article 423, Paragraph 1 of the Companies Act, which is in accordance with the provisions of Article 427,
Paragraph 1 of the Companies Act. Under the contract, the amount of their liability for damages will be limited to theminimum liability amount provided for under laws and regulations.
(3) Outline of Directors and Officers Liability Insurance Agreement
The Company concluded a directors and officers liability insurance agreement with an insurance company. The outline of
the agreement is as follows:
・ The insured are the Directors, Company auditors, Executive Officers, and Department Managers of the Company, and the
Directors, Company auditors, and Executive Officers of the Company's subsidiaries (excluding listed subsidiaries).
・ The coverage of the insurance is the legal damages and expenses that may be incurred by the insured due to the insured's
business actions (including omissions).
・ All of the premiums for the insurance agreement are borne by the Company.
(4) Amount of the Remuneration of Directors and Company auditors(i) Matters regarding the policy for determining the details of the individual remuneration for directors
a. Method for determining the policies
The Company decided on the policy through a resolution of the Board of Directors issued on February 9, 2021, which
was based on the deliberations by the Appointment and Remuneration Advisory Committee.
b. Outline of the policy(a) Basic Policy
The remuneration of the Company's directors should be appropriate, fair and balanced so that it is linked to themedium- to long-term interests of the shareholders and can further motivate the directors to maximize the corporate
value of the Company.
The remuneration of internal directors consists of monthly remunerations as fixed remunerations, bonuses as
performance-based remunerations, and stock compensation-type stock options as non-monetary remunerations. The
individual remuneration is determined according to responsibilities. For outside directors, only monthly remunerations
as fixed remunerations are provided.
The Company has a Appointment and Remuneration Advisory Committee that is composed of the Representative
Director and independent outside directors. Its purpose is to have the independent outside directors express theiropinion from a fair and neutral standpoint and report to the Board of Directors, upon consultation of the Representative
Director, when deciding the remuneration of the directors.
(b) Policy for determining the individual amount of fixed remuneration (monetary remuneration), including the policy for
determining the timing or conditions to pay the remuneration
The fixed remunerations of the directors of the Company should be monthly remunerations, and should be determinedby taking into consideration the business environment, business performance, etc., according to responsibilities, within
the range of the remuneration limit approved at the general meeting of shareholders.

(c) Policy for determining the details and amount, or the calculation method, of the performance-based and non-monetary
remunerations, including the policy for determining the timing or conditions to pay the remuneration
Bonuses, which are performance-based remunerations, are decided by considering and judging comprehensively theshort-term performance, business environment, stock prices, dividend trends, etc., without limiting them to one index,
in order to grasp the willingness to improve the corporate value of the Company from the perspective of reflecting theforegoing factors.
The total amount of the payment is deliberated by the Appointment and Remuneration Advisory Committee, approvedby the Board of Directors, submitted and approved at the annual general meeting of shareholders, and paid at a fixed
time each year. The business results for the current fiscal year are as stated in the "(1) Business Progress and Results"
and "(5) Changes in Financial Positions and Results of Operations" under "1. Current Status of Kaneka Group (theCorporate Group)" and "8. Policy concerning the dividends from surplus, etc."
Stock compensation-type stock options, which are non-monetary remunerations, are paid at a certain time every year,
the number of which is determined according to responsibility, based on a fair price calculated using the formulaspecified by the Black-Scholes model, within the remuneration limit approved at the general meeting of shareholders.
The purpose of this remuneration is to further improve the motivation and morale of the directors to contribute to therise in stock prices and corporate value of the Company. The outline of the stock compensation-type stock options is
as described in the “(1) Status of Stock Acquisition Rights Granted to the Company’s Directors as Remuneration for
the Execution of Duties at the End of the Current Fiscal Year” under "3. Matters Regarding Stock Acquisition Rightsof the Company".
(d) Policy for determining the ratio of the amount of monetary remuneration, performance-based remuneration or nonmonetary remuneration to the amount of individual remuneration of directors
Based on the "(a) Basic Policy," the compensation ratio for each type of internal director is about 70% for monthly
remuneration (fixed remuneration) and about 30% for variable remuneration, including bonuses and stockcompensation-type stock options.
(e) Matters regarding the determination of the details of the individual remuneration for directors
The basic policy regarding the details of the individual remuneration for directors will be decided by the Board of
Directors, based on the deliberations by the Appointment and Remuneration Advisory Committee.
The amount of the basic remuneration and bonuses for each individual will be decided as follows by the Representative
Director who has been entrusted to decide the specific details, based on the resolution of the Board of Directors:
・Basic remuneration for each individual: Based on the deliberations by the Appointment and Remuneration Advisory
Committee, the Representative Director will decide on the allocation of the remuneration according to responsibility,
within the remuneration limit approved at the general meeting of shareholders;・Bonuses for each individual: Based on the deliberations by the Appointment and Remuneration Advisory Committee,
the Representative Director will decide on the allocation of total bonuses according to responsibility, within the
remuneration limit approved at the general meeting of shareholders.
In addition, the number of stock compensation-type stock options to be allocated will be determined according to
responsibility.
c. Reason why the Board of Directors decided that the details of the individual remuneration for directors for the current
fiscal year is in line with the policy
The details of the individual remuneration for the directors are in line with the policy for determination since theremuneration will be decided based on the policy and deliberations by the Appointment and Remuneration Advisory
Committee, and according to responsibility, within the range of the remuneration limit approved at the general meetingof shareholders.
(ii) Matters regarding the policy for determining the amount or calculation method of the remuneration for the Company
auditors
The remuneration for the Company auditors should be fixed and determined within the range of the remuneration limit
approved at the general meeting of shareholders. The amount of the remuneration of the individual Company auditors will
be determined through consultations with the Company auditors, according to their duties and responsibilities.
(iii) Matters regarding the resolutions at the General Meeting of Shareholders on the remuneration for directors and Company

auditors
At the 76th Ordinary General Meeting of Shareholders held on June 29, 2000, the amount of monetary remuneration forthe directors was resolved to be within 46 million yen per month. The number of directors at the end of that Ordinary
General Meeting of Shareholders was 19. In addition to the monetary remuneration amount, at the 83rd Ordinary General
Meeting of Shareholders held on June 28, 2007, the amount of stock compensation-type stock options was resolved to bewithin 75 million yen or less per year, and the number of stock acquisition rights to be granted was resolved to be within
75. The number of directors at the end of that Ordinary General Meeting of Shareholders was 13. Furthermore, at the 97th
Ordinary General Meeting of Shareholders held on June 25, 2021, a total director bonus of 100 million yen for eight
directors excluding outside directors was resolved.
At the 83rd Ordinary General Meeting of Shareholders held on June 28, 2007, the amount of monetary remuneration for
Company auditors was resolved to be within 7.8 million yen per month. The number of Company auditors at the end ofthat Ordinary General Meeting of Shareholders was 4.
(iv) Matters regarding the delegation of the determination of the individual remuneration for directors
The individual basic remuneration and bonuses for directors will be discussed and decided by Mr. Koichi Sugawara,
Chairman of the Board of Directors and Representative Director, and Mr. Minoru Tanaka, President and Representative
Director, based on the delegation resolution of the Board of Directors issued on June 25, 2021. The reason for suchdelegation to the two Representative Directors is that they are the most suitable, as they represent the Company and have abird's-eye view of the overall management. The individual remuneration for directors is decided according to the
responsibilities of each director, within the range of the remuneration limit approved at the general meeting of shareholders.
(v) Total amount of remuneration for directors and Company auditors

Category

Total amount by type of remuneration (in million yen)
Total amount of
Non-monetary
Number of
Performance-based
remuneration (inremuneration (stock
persons granted
Base remuneration
remuneration
million yen)compensation-type(bonus)stock options)

Directors
12 (4)
635 (68)455 (68)120 (-)
59 (-)(outside directors)
Company auditors
4 (2)
82 (34)82 (34)――(outside Company auditors)(Note) 1.The amount is rounded down to the nearest unit.
2.Performance-based remuneration (bonuses) of 120 million yen for eight directors excluding outside directors will be paid after
approval of Proposal No. 4 of the 98th Ordinary General Meeting of Shareholders, "Bonus payments for officers," as originallyproposed.
3.Non-monetary remuneration (stock compensation type stock options) of 59 million yen is the amount of stock acquisition rights
granted to eight directors excluding outside directors in the current fiscal year.

(5) Matters regarding Outside Directors(i) Status of significant concurrent positions of outside directors
Title

Name

Concurrent positions

Director

Takeo Inokuchi

Outside Director, Kikkoman Co., Ltd.

Director

Mamoru Mohri

Honorary Director, Japan Science and Technology Agency,
National Research and Development Corporation, The
National Museum of Emerging Science and Innovation
Chairman of the Japan Water Awards Committee

Director

Takao Kusakari

Outside Director, Japan Oil Transportation Co., Ltd.

Director

Jun Yokota

Company auditor (Outside)

Hiroshi Fujiwara

Attorney at law

Company auditor (Outside)

Yasuhiro Uozumi

Attorney at law(Note) 1.Although the Company has transactions related to product shipments with Japan Oil Transportation Co., Ltd., where Mr. Takao
Kusakari is Outside Director, the transaction amount paid by the Kaneka Group to Japan Oil Transportation Co., Ltd. in themost recent fiscal year is minimal, accounting for less than 0.1% of its sales amount.
2.Other than above, there is no special relationship between significant concurrent positions and the Company.

(ii) Major activities during the current fiscal year
Title

Name

Director

Takeo Inokuchi

Director

Mamoru Mohri

Director

Takao Kusakari

Director

Jun Yokota

Company auditor(Outside)

Hiroshi Fujiwara

Company auditor(Outside)

Yasuhiro Uozumi

Major activities during the current fiscal year
Mr. Inokuchi attended 14 of the 14 meetings of the Board of
Directors held in the current fiscal year, and made appropriate
remarks based on his abundant knowledge as a manager. Everymonth, Mr. Inokuchi receives business reports from the directors andexchange opinions as appropriate. In addition, Mr. Inoluchi regularly
meets with the representative director and attend the Appointment
and Remuneration Advisory Committee and Independent External
Director’s Meeting to exchange opinions.
As an outside director, Mr. Inokuchi provides appropriate
management supervision and objective and strategic advice. Mr.
Inokuchi plays that role well.
Mr. Mohri attended 14 of the 14 meetings of the Board of Directors
held in the current fiscal year, and made appropriate remarks basedon his abundant knowledge as an internationally experienced
scientist. Every month, Mr. Mohri receives business reports from thedirectors and exchange opinions as appropriate. In addition, Mr.
Mohri regularly meets with the representative director and attend the
Appointment and Remuneration Advisory Committee andIndependent External Director’s Meeting to exchange opinions.
As an outside director, Mr. Mohri provides appropriate management
supervision and objective and strategic advice. Mr. Mohri plays thatrole well.
Mr. Kusakari attended 14 of the 14 meetings of the Board of
Directors held in the current fiscal year, and made appropriate
remarks based on his abundant knowledge as a manager. Everymonth, Mr. Kusakari receives business reports from the directors andexchange opinions as appropriate. In addition, Mr. Kusakari
regularly meets with the representative director and attend the
Appointment and Remuneration Advisory Committee andIndependent External Director’s Meeting to exchange opinions.
As an outside director, Mr. Kusakari provides appropriate
management supervision and objective and strategic advice. Mr.
Kusakari plays that role well.
Mr. Yokota attended 14 of the 14 meetings of the Board of Directors
held in the current fiscal year, and made appropriate remarks basedon his abundant internationally experienced knowledge. Everymonth, Mr. Yokota receives business reports from the directors andexchange opinions as appropriate. In addition, Mr. Yokota regularly
meets with the representative director and attend the Appointment
and Remuneration Advisory Committee and Independent External
Director’s Meeting to exchange opinions.
As an outside director, Mr. Yokota provides appropriate management
supervision and objective and strategic advice. Mr. Yokota plays thatrole well.
Mr. Fujiwara attended 14 out of 14 meetings of the Board of
Directors and 14 out of 14 meetings of the Board of Company
auditors held in the current fiscal year, and made appropriate remarks
from the perspective of legal compliance, etc., based on his abundant
experience and expertise as a lawyer. In addition, Mr. Fujiwara
receives monthly corporate auditor business reports from full-time
corporate auditors, exchange opinions, and discuss importantmatters. In addition, Mr. Fujiwara holds regular meetings withrepresentative directors and meetings of outside officers, including
outside directors, to exchange opinions.
Mr. Uozumi attended 14 out of 14 meetings of the Board of Directors
and 14 out of 14 meetings of the Board of Company auditors held in
the current fiscal year, and made appropriate remarks from theperspective of legal compliance, etc., based on his abundant
experience and expertise as a lawyer. In addition, Mr. Uozumi
receives monthly corporate auditor business reports from full-time
corporate auditors, exchange opinions, and discuss importantmatters. In addition, Mr. Uozumi holds regular meetings withrepresentative directors and meetings of outside officers, including
outside directors, to exchange opinions.

5. Status of the Accounting Auditor(1) Name of the accounting auditor
KPMG AZSA LLC(2) Amount of Remuneration for the Accounting Auditor for the Current Fiscal Year(i) Amount of remuneration for the fiscal year
82 million yen(ii) Total amount of money or other economic benefits to be paid by the Company and its subsidiaries
100 million yen(Note) 1.The amount is rounded down to the nearest unit.
2.The Board of Company auditors performed necessary verification to decide whether the contents of the accounting auditor’s
audit plan, the status of accounting audit execution and the grounds for calculation of the remuneration estimate, etc. wereappropriate, and determined to agree on the amount of remuneration, etc. for the accounting auditor pursuant to Article 399,
Paragraph 1 of the Companies Act.
3.The audit agreement between the Company and the accounting auditor does not separate the remuneration for audit services
under the Companies Act from that for audit services under the Financial Instruments and Exchange Act. Thus, the amountdescribed in (i) above indicates total amount of the remuneration, etc. for both audit services.

(3) Contents of Non-auditing Services
The Company and its subsidiaries outsourced to the Accounting Auditor the "confirmation procedure work required for thecertification application with regard to the Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities," which is a business (non-audit business) that is other than the business under Article
2, Paragraph 1 of the Certified Public Accountants Act.
(4) Policies for Determination of Dismissal or Non-reappointment of the Accounting Auditor
The Board of Company Auditors shall dismiss the Accounting Auditor based on the consent of all corporate auditors if the
Accounting Auditor is deemed to fall under any of the items stipulated in each item of Article 340, Paragraph 1 of theCompanies Act. In addition, the Board of Company Auditors shall comprehensively consider the independence of the
Accounting Auditor, the status of its execution of duties, etc., and if changing the Accounting Auditor is deemed appropriate,
the Board of Company Auditors will decide the content of the agenda on the dismissal or non-reappointment to be submitted to
the general meeting of the shareholders. Based on the decision of the Board of Company Auditors, the Board of Directors shallsubmit a proposal for the dismissal or non-reappointment of the Accounting Auditor to the Ordinary General Meeting of
Shareholders.

6. Systems to ensure the appropriateness of business operations and the status of operation of the systems(1) Outline of systems to ensure the appropriateness of business operations
The Company established the "Basic Policy for the Systems to Ensure Appropriateness of Business Operations (Internal
Control System)" through a resolution of the Board of Directors. The outline of the systems is as described below. The
Company endeavors to ensure the effectiveness of the internal control systems by regularly confirming this basic policy andreviewing it appropriately. During this fiscal year, this policy was resolved at the meeting of the Board of Directors held on
March 23, 2022.
i.

System to ensure that the execution of duties of directors and employees complies with laws and regulations and the
Articles of Incorporationa. In principle, four independent outside directors will be appointed to strengthen the supervisory function of the Boardof Directors.
b. In order to ensure the effective functioning of the corporate governance initiatives, the Company shall establish a
Appointment and Remuneration Advisory Committee as an advisory committee to the Board of Directors.
c. An Independent External Director’s Meeting, composed of independent outside directors and independent outsidecompany auditors, shall be established to discuss matters related to corporate governance and report on issues andimprovement measures to the Chairman of the Board of Directors.
d. An ESG Committee shall be established to oversee the promotion of corporate activities respecting all stakeholders inorder to resolve social issues and continuously increase corporate value.
e. With regard to corporate ethics and legal compliance, the Compliance Subcommittee under the ESG Committee shalloversee the promotion and audit of necessary activities, such as overseeing company-wide plans, understanding thedegree of progress, checking the status of compliance, and establishing and maintaining an appropriate consultation
and whistle-blowing desk.
f. A Earth Environment Subcommittee, Safety & Human Health Subcommittee, and Product Safety Subcommittee under
the ESG Committee will supervise the promotion of plans for company-wide issues.
g. The Company will develop various internal regulations from the viewpoint of compliance, and ensure a thoroughunderstanding and compliance with these regulations through education and training, self-inspections, audits, etc.
h. Blocking all relationships with antisocial forces, the Company will take a firm, company-wide approach to deal withillegal and unfair demands. In addition, the Company will establish a department within the Company that will be incharge of responding, gathering and managing information on a regular basis, collaborating with externalorganizations and related organizations such as the police and others, and developing and strengthening the Company’s
internal system to eliminate antisocial forces.
i. In order to ensure the reliability of financial reporting, internal controls over financial reporting shall be established,
and the Internal Control Department shall conduct necessary monitoring activities.

ii

Rules and other systems related to management of risks of loss
a. With regard to risk management, basically, each division shall take appropriate preventive measures in the course ofcarrying out their operations or assuming risks that are likely to occur in connection therewith, and, in the event that arisk materializes, shall take appropriate measures with the support of the related divisions.
b. The Compliance Subcommittee under the ESG Committee shall oversee the drafting and promotion of company-wideplans for preventive measures against the emergence of potential risks, including those related to ethics and legal
compliance.
c. The ESG Committee will collaborate with the relevant department, as appropriate, to address risks that have occurredor are specifically expected to occur.
d. The Company will regularly inspect whether the above three items are being properly implemented to avoid losing
the substance of the system, and to maintain and improve its effectiveness.

iii System to ensure that the execution of the duties of the directors is performed efficiently
a. Under the executive officer system, the Company will harmonize the supervisory and executive functions of thedirectors to speed up the decision-making and clarify roles.
b. With regard to the execution of day-to-day operations, the Company will assign the department heads, including theexecutive officers appointed through the Board of Directors’ broad authority, to ensure flexibility in the execution ofoperations, and the directors will be in charge of each division to supervise the execution of operations.
c. The Company will hold monthly regular meetings of the Board of Directors to make decisions on important mattersand report on the status of the directors’ execution of the operations.

d. Important matters shall be resolved by the Board of Directors and executed after the deliberations by the Management
Committee in accordance with internal proposals and decision-making procedures based on the Decision Standards
Table.
e. The Company will hold a monthly Executive Officers’ Meeting to share management policies and issues to speed up
execution, and realize management objectives.
f. The Company will hold a monthly meeting of the division heads to communicate and disseminate management
policies, business results, etc., and the designated division heads shall report on the business plan and its progress.
g. The Independent External Director’s Meeting will discuss the ideal Board of Directors and how to operate a Board of
Directors, thereby enhancing the effectiveness of the Board of Directors.
iv System regarding retention and management of information in relation to the execution of duties of directors
Information related to internal decision-making and execution of operations shall be stored and managed in accordancewith laws, regulations and internal regulations.
v

System to ensure the appropriateness of operations in the corporate group consisting of the Company and its subsidiaries
a. The organization and business operations of domestic and overseas subsidiaries and the risk management shall be
conducted in accordance with the “Guidelines for Organizational Structure and Operation of Group Companies.”b. The relevant departments and divisions of the Company will provide necessary support to the compliance committees
of subsidiaries in order to develop and disseminate the ESG Charter, Ethical Code of Conduct and other internal rules
and regulations. In addition, the Company’s Compliance Subcommittee will check the status of compliance of thesubsidiaries.
c. Company auditors shall be appointed in domestic subsidiaries, and the relevant divisions of the Company shall provide
necessary guidance and support so that the company auditors can conduct effective audits. The appropriateness of theCompany group's operations shall be ensured through internal audits and internal control evaluations conducted by
the Company's Internal Control Department for domestic and overseas subsidiaries.
d. The Company will hold regular briefings for the domestic subsidiaries to communicate the Company group's
management policies and other matters. Also, each president will report on the management policies and the status ofachievements, etc. In addition, the Company will strive to improve operational efficiency by function by sharing plantsafety measures at global plant managers meetings, which the overseas subsidiaries’ plant managers attend.

vi System for the directors and employees, etc. of the Company and its subsidiaries to report to the company auditor andother systems for reporting to the company auditor, and system for ensuring no unfavorable treatment resulting frommaking the reporta. Directors and employees, etc. of the Company and its subsidiaries, as well as the person who receives a report fromthe directors and employees, etc. of its subsidiaries, shall report the following matters to the company auditors without
delay:(a) Matters that may cause significant damage to the Company and its subsidiaries(b) Implementation status of internal audits and internal control evaluations(c) Important compliance issues(d) Other important matters related to management
b. Important approval documents shall be circulated to the company auditors.
c. The Company will take care not to cause any disadvantage to the person who makes the report referred to in a. aboveon the grounds that such report was made.
vii Matters concerning employees who are to assist in the duties of the company auditors, matters concerning theindependence of such employees from the directors, and matters ensuring the effectiveness of instructions given to such
employees
a. A secretariat shall be established at the Board of Company Auditors, and assistants shall be assigned to the company
auditors as employees who will assist in the duties of the company auditors.
b. The appointment, transfer and evaluation of such assistants to the company auditors shall be decided upon the consent
of the company auditors to ensure independence from the directors.
c. Such assistants to the company auditors shall comply with the instructions and orders of the company auditors.
viii Other systems to ensure effective audits by the company auditors
a. Regular meetings to exchange opinions between the representative director and the company auditors shall be held.
b. The company auditors shall hear from the directors, etc. from time to time the status of execution of operations.

c. The company auditors will attend important meetings, such as meetings of the Board of Directors, division heads, andthe Management Committee.
d. The company auditors shall receive reports on the results of accounting audits, etc. from the accounting auditors on aregular basis and hold meetings to exchange opinions in order to cooperate with them.
e. The company auditors shall examine from time to time the status of execution of operations and asset management at
the Company’s head office, factories, etc. and subsidiaries.
f. The company auditors may consult experts, such as certified public accountants and attorneys, as necessary, and thecosts thereof shall be borne by the Company.
(2) Outline of the status of operation of the systems to ensure the appropriateness of operations
The outline of the status of operations of the systems to ensure the appropriateness of operations during this year is asfollows:
i Compliance and Risk Management System
・ The four independent outside directors attended the meetings of the Board of Directors and expressed their opinions
based on an objective and strategic perspective from their respective perspectives, as appropriate.
・ The Appointment and Remuneration Advisory Committee meeting was held, and the Company obtained approval forthe selection of director candidates and company auditor candidates to be presented at the 98th Ordinary General
Meeting of Shareholders, as well as the compensation to be granted to the directors.
・ The Independent External Director’s Meeting was held where frank opinions were exchanged among the independent
outside directors and outside auditors regarding the operations of the Company’s Board of Directors and other matters,
and the content of the meetings was reported to the Chairman of the Board of Directors.
・ The meeting of the ESG Committee was held twice during the year where the status of the responses to COVID-19
and future responses, the efforts to realize carbon neutrality, and the activities of the four subcommittees under the
ESG Committee where shared. The meetings also determined the direction of initiatives for the next fiscal year.
・ The Compliance Subcommittee meetings, under the ESG Committee, were held twice during the year, and reports
were received from company-wide staff departments involved in compliance and risk management on the actual
conditions, issues, measures, etc. The overall policies were also decided.
・ The ESG Department Internal Control Division conducted internal audits and internal control evaluations for each of
the divisions.
ii Efficient system for the execution of duties of directors
・ The meeting of the Board of Directors was held 14 times during the year to discuss and make resolutions on importantmatters in accordance with the rules of the Board of Directors and to report on the status of execution of the operations
by the directors.
・ The meetings of the division heads were held every month. The top management communicated and disseminatedmanagement policies and business results, and each division manager reported on the business plans and their progress
to confirm the status of execution of the operations.
iii Subsidiary management system
・ The Company, led by the ESG Department Group Companies Support Division, provided necessary support todomestic subsidiaries for compliance and other matters. Members of the ESG Department Group Companies Support
Division concurrently served as company auditors at domestic subsidiaries and attended important meetings, such as
meetings of the Board of Directors; checked the status of execution of operations, internal controls and legal
compliance; and also reported on those at the Compliance Subcommittee under the Company’s ESG Committee,
appropriately.
・ Internal audits and internal control evaluations were conducted for domestic and overseas subsidiaries by the ESG
Promotion Department Internal Control Division.
iv Audit system by the company auditors
・ The meeting of the Board of Company Auditors was held 14 times during the year to broadly verify and exchange
opinions on management legality, compliance and other matters.
・ The company auditors attended the meetings of the Board of Directors and other important meetings, and heard fromthe directors and others the status of execution of the operations appropriately. In addition, the company auditors
gathered information and conducted surveys through the cooperation of the accounting auditors, the ESG Promotion
Department Internal Control Office and other bodies, and through visits to each business site and domestic andoverseas subsidiaries.
7. Basic Policy Regarding the Control of the Company
As long as the Company is a public company, it is natural that shares of the Company will be freely traded on the market,
and if a so-called "hostile takeover" were to occur without the support of the Board of Directors of the Company, it
should not be excessively refused if it would result in corporate value and, in turn, redound to the common interests ofthe shareholders. However, in the event of a large-scale acquisition of shares of the Company, the Company believes it
is necessary to ensure that sufficient information is provided to the shareholders. In addition, if hostile and abusive
purchases are made against the Company, which undermine the corporate value of the Company and the common
interests of the shareholders, such as those seeking solely to pursue the interests of the bidders themselves, then the
Company believes that it must take necessary and appropriate measures to protect the corporate value of the Company
and, in turn, the common interests of the shareholders.
Accordingly, we will take appropriate measures in accordance with the Financial Instruments and Exchange Act, theCompanies Act, and other relevant laws and regulations. For example, the Company will ask persons who intend to
conduct a large-scale purchase of the shares of the Company to provide shareholders with necessary and sufficient
information to allow them to make an appropriate judgment on the pros and cons of the large-scale purchase, and theCompany will also disclose the opinions of its Board of Directors and endeavor to secure the time and informationnecessary for the shareholders to consider the large-scale purchase.
8. Policy concerning the dividends from surplus, etc.
The Company places a high priority on strengthening its financial base while increasing its earning capability andreturning profits to shareholders.
In returning profits, the Company’s basic policy is to give overall consideration to its business performance each fiscal
year, medium- to long-term earning trends, investment plans, financial position, and other factors, and to continue stableprofit returns with a target consolidated dividend payout ratio of 30% as well as acquisition of treasury shares.
The Company decided to pay a dividend of 110 yen per share for this fiscal year by resolution of the Board of Directors,
comprehensively taking into account factors such as business performance trends and the dividend payout ratio. As theCompany has paid an interim dividend of 50 yen per share, the year-end dividend is 60 yen per share. (Effective date andpayment commencement date: June 13, 2022)

Balance Sheet(As of March 31, 2021)(Millions of yen)
Items
（Assets）
Current assets
Cash and deposits
Notes
Accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Noncurrent assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress
Intangible assets
Software
Other
Investments and other assets
Investment securities
Shares of subsidiaries andassociates
Long-term loans receivable

Amounts
205,082
14,8491,103
93,82526,723
7,663
28,682
2,728
30,234(729)
285,640
144,028
36,276
11,72054,679149
4,479
20,585
16,138
5,193
3,982
1,211
136,418
49,105（Liabilities）
Current liabilities
Accounts payable-trade
Short-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Provision for directors' bonuses
Other
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for product warranties
Other
Total liabilities（Net assets）
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Retained earnings
Legal retained earnings

68,773

Other retained earnings

3,186

Reserve for special disasterReserveforproperty
replacement
Reserve for tax purpose
reduction entry for property
replacement
General reserve
Retained earnings brought
forwardTreasury stock
Valuation and translation adjustments
Valuation difference on availablefor-sale securities
Subscription rights to shares
Total net assets
Total liabilities and net assets

Deferred tax assets

2,410

Other

13,104

Allowance for doubtful accounts(161)

Total assets

Items

490,722Amounts
157,40247,32078,44323,750
5,295
1,105
759
500
120
105
60,036
10,00025,49021,4162,331
799
217,439
252,694
33,04634,821
34,821
196,355
5,863
190,49135
753
317
151,427
37,957(11,528)
20,033
20,033555
273,283
490,722

Statement of income(From April 1, 2021 to March 31, 2022)(Millions of yen)
Items

Amounts

Net sales

334,675

Cost of sales

237,081

Gross profit

97,593

Selling, general and administrative expenses

83,576

Operating income

14,017

Non-operating income
Interest and dividends income

21,423

Other

1,138

22,562Non-operating expenses
Interest expenses
Other

363
3,829

Ordinary income

4,192
32,386Extraordinary income
Insurance claim income

1,159

1,159

Extraordinary losses
Restructuring charges

1,896

Product warranty expense

2,331

Profit before income taxes

29,319

Income taxes-current

2,277

Income taxes-deferred(1,305)

Net income

4,227

971
28,347

Statement of Changes in Shareholders’ Equity(From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings
Other retained earnings

Capital
stock

Legal
capitalsurplusTotal
capitalsurplusReserve forLegal
tax purpose
retained Reserve for Reserve for reduction
property
specialearnings
entry fordisaster replacement

Generalreserve

Retainedearnings
brought
forwardTotal
retainedearnings

147,427

20,103

174,533

(0)

－

32

－

(4,000)－

Dividends of surplus(6,523)(6,523)

Net income

28,34728,347property
replacement

Balance at beginning of theperiod33,04634,821

34,821

5,863

35

753

349

Changes of items during period
Provision of reserve for special
disaster
Reversal of reserve for tax
purpose reduction entry forproperty replacement

0(32)

Provision of general reserve

4,000

Purchase of treasury stock－－

Disposal of treasury stock

(1)

(1)

Net changes of items otherthan shareholders' equity－－

Total changes of items during
periodBalance at end of the period

－

－

－

－

0

－

(32)

4,000

17,854

21,822

33,04634,821

34,821

5,863

35

753

317

151,427

37,957

196,355

Valuation and translation
adjustments

Shareholders' equity

Balance at beginning of theperiodTreasury stock

Total
shareholders'equityValuationdifference on
available-forsale securities

Total valuationand translation
adjustments(11,535)

230,866

19,505

19,505

Subscription
rights to shares

Total net
assets447

250,818

Changes of items during period
Provision of reserve for special
disaster
Reversal of reserve for tax
purpose reduction entry forproperty replacement
Provision of general reserve

－

－

－

－

－

－

Dividends of surplus(6,523)(6,523)

Net income

28,34728,347Purchase of treasury stock

(4)

(4)

(4)

Disposal of treasury stock

10

8

8

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of the period

528

528

108

636

6

21,828

528

528

108

22,465(11,528)

252,694

20,033

20,033555

273,283

Notes
Notes to significant accounting policies for preparing non-consolidated financial statements
1. Valuation method for assets(1) Valuation method for securities(i) Securities of subsidiaries

Stated at cost determined by the moving average method

and affiliates(ii) Other securities
・Other than non-marketable equity

Stated at fair value

securities……

（Unrealized holding gain or loss, net of applicable tax arereported in a separate component of equity, and the cost of
securities sold is calculated by the moving average method.）

・Non-marketable equity

Stated at cost determined by the moving average method

securities…………………

(2) Valuation method for derivatives
Stated at fair value(3) Valuation method for inventories(i) Products and goods

Stated at cost based on monthly weighted-average method(ii) Raw materials andStated at cost determined by the moving average method

work in progress（Balance sheet amount is computed by devaluing the book price to reflect declines in profitability.）

2. Depreciation and amortization methods for fixed assets(1) Tangible fixed assets
Straight-line method
The useful life of assets is primary as follows.
Buildings……………………

31 to 50 years

Machinery and equipment…

7years, 8years(2) Intangible fixed assets
Straight-line method
Software for own-use is amortized by the straight-line method over an expected useful life of 5 years.
3. Basis of Provisions(1) Provisions for doubtful debts
Provision for doubtful debts is provided based on past experience for normal receivables and on an estimate of thecollectability of receivables from companies in financial difficulty.
(2) Accrued bonus to Directors and statutory auditors
To provide for the payment of bonuses to Directors and statutory auditors, an amount corresponding to the current

fiscal year is accrued based on the estimated amount of payment.
(3) Provision for retirement benefits
Provision for retirement benefits is provided based on the estimated projected benefit obligation and pension assets asat the current fiscal year-end.
For calculating the retirement benefit obligation, the benefit formula basis has been adopted for attribution projected
benefit to periods up to the end of this fiscal year.
Prior service costs are amortized as incurred by the straight-line method over 5 years, which are shorter than the
average remaining years of service of employees.
Actuarial gain and loss is amortized in the year following the year in which the gain or loss is recognized primarily by
the straight-line method over 5 years, which are shorter than the average remaining years of service of employees.
(4) Provision for product warranties
To provide for future product replacement and repair costs for products delivered to customers, the estimated amountis accrued.
4. Basis for recording revenues and expenses
The Company operated its business along four domains categorized by solution, the “Material Solutions Unit,” “Qualityof Life Solutions Unit,” “Health Care Solutions Unit,” and “Nutrition Solutions Unit.” The Company primarily sells
finished products and goods to customers.
In principle, the Company recognizes revenue as the performance obligation is satisfied at the time of delivery of the
products. However, for domestic sales, if the period between shipment and delivery is within a normal period, revenue isrecognized at the time of shipment.
Some of these are sold with rebates based on transaction volume, etc., and thus include variable pricing. The transaction
price is calculated based on the consideration promised to customers in the contracts, less the estimated amount of suchrebate.

5. Other material matters relating to the preparation of financial statements(1) Hedge accounting
The Company adopts deferral hedge accounting, and applies exceptional processing for the interest swap, wherecertain conditions for such exceptional processing are met.
(2) Adoption of consolidated taxation system
The Company applies for the consolidated taxation system.
(3) Application of tax effect accounting for the transition from the consolidated taxation system to the group tax sharing system
The Company will shift from transit the consolidated taxation system to the group tax sharing system form thefollowing fiscal year. However, with regard to the transition to the group tax sharing system established under the “Actfor Partial Revision of the Income Tax Act, etc.” (Act No. 8 of 2020) and the items for which the taxation system toeach separate entity was revised in line with the transition to the group tax sharing system, in accordance with thetreatment of Paragraph 3 of the “Practical Solution on the Treatment of Tax Effect Accounting for the Transition fromthe consolidated taxation system to the group tax sharing system” (Practical Solution No. 39, March 31, 2020), theprovisions of Paragraph 44 of the “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28,
February 16, 2018) are not applied, and the amount of deferred tax assets and deferred tax liabilities are in accordancewith the provisions of the Tax Act before the revision.
The Company will apply the “Practical Solution on Accounting and Disclosure for the Application of the Group Tax
Sharing System” (Practical Solution No. 42, August 12, 2021), which provides for accounting treatment and disclosureof corporate tax, local corporate tax and tax effect accounting in the case of applying the group tax sharing systemfrom the beginning of the next fiscal year.
(4) Accounting for Retirement Benefits
Unrecognized actuarial gains and losses on retirement benefits and unrecognized prior service cost are accounted for
differently from those in the consolidated financial statements.

Changes in Accounting Principles
1.

Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) (hereinafter referred to as “Revenue Recognition Accounting Standards”), etc. from the beginning of this fiscal
year, and recognizes revenue as the amount expected to be received in exchange for the promised goods or services
when the control of the goods or services is transferred to the customer. The Company has applied the alternative
treatment stipulated in Paragraph 98 of the “Implementation Guidance on Accounting Standard for Revenue
Recognition,” and recognizes revenue from domestic sales of goods or products upon their shipment when there is anormal period of time from shipment until control of merchandise or products is transferred to the customer.
In applying the Revenue Recognition Accounting Standards, etc., the Company follows the transitional treatment set
forth in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standards. The cumulative effect ofretroactively applying the new accounting policy to periods prior to the beginning of this fiscal year has been added
to or subtracted from retained earnings at the beginning of this fiscal year, and the new accounting policy has been
applied from the beginning balance of this fiscal year. The cumulative effect on income for this fiscal year isinconsequential, and there is no impact on the balance of retained earnings at the beginning of this fiscal year.

2.

Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019) (hereinafter, “Fair Value Measurement Accounting Standards”), etc. from the beginning of this fiscal year. In
accordance with the transitional treatment stipulated in Paragraph 19 of the Fair Value Measurement AccountingStandards and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July4, 2019), the Company will apply the new accounting policies set forth in the Fair Value Measurement AccountingStandards, etc. prospectively into the future. This does not affect the financial statements.

Notes to Revenue Recognition
Information to understand revenue from contracts with customers
With regard to information to understand revenue from contracts with customers, the notes are omitted since the same
information is provided in “Notes to Revenue Recognition” in Notes to the Consolidated Financial Statements.

Notes to accounting estimates
1. Valuation of noncurrent assets(1) Amount recorded in the financial statement for this fiscal year
The amount of property, plant and equipment recorded in the financial statements for this fiscal year based on
accounting estimates is 144,028 million yen and the amount of intangible assets recorded in the financial statements
for this fiscal year based on accounting estimates is 5,193 million yen.
(2) Information that contribute to understanding the content of accounting estimates
With regard to property, plant and equipment and intangible assets, the Company searches for an indication that theassets or asset group on which it makes business management and investment decision based on Solution Vehicles
may be impaired. If so, the Company considers whether to recognize an impairment loss by using future cash flow
estimated based on the med-term business plan, which is organized based on comprehensive consideration of
economic trends and changes in the business environment.
The Company has four business segments (Solutions Unit) consisting of the “Material Solutions Unit,” “Quality ofLife Solutions Unit,” “Health Care Solutions Unit,” and “Nutrition Solutions Unit,” which provide solutions to social
issues by creating new value through technological innovation, and operates a wide variety of businesses on a global
scale by networking its supply chain worldwide.
Therefore, for some asset groups, unexpected events such as pandemics, natural disasters, wars, terrorism, economic
crises, shortages of raw material components or sharp price fluctuations could affect the supply chain and impact theassumptions used in the med-term business plan for estimating future cash flows.

2. Valuation of shares of subsidiaries and affiliates(1) Amount recorded in the financial statement for this fiscal year
The amount of shares of subsidiaries and affiliates recorded in the financial statements for this fiscal year based on
the accounting estimate is 68,773 million yen and, of these, the shares requiring consideration regarding therecoverability of real value is as follows:
Investment in Kaneka (Thailand) Co., Ltd. 2,549 million yen(2) Information that contribute to understanding the content of accounting estimates
As for the shares of its subsidiaries and affiliates, the Company stated these, at cost, and determined these using themoving average method as the valuation method. If the real value of the shares declines significantly due to thedeteriorating financial condition of the issuing company, the book value is reduced to the real value except in cases
where the recoverability is supported by sufficient evidence.
Kaneka (Thailand) Co., Ltd. is engaged in the Eperan business in Thailand, which handles bead method polypropylene,
but is in a deteriorating financial condition due to the delay in the sales expansion plans caused by expenses incurredin starting up the business and the spread of COVID-19. Although the Company believes that the recoverability of thereal value of its shares is supported sufficiently by future business plans, these future projections are subject touncertainty and may be affected by fluctuations in actual sales demand.

Notes to balance sheet
1. Collateral assets and secured debts(1) Collateral assets
Investment securities
Total

1,443million yen
1,443million yen(2) Secured debts
Short-term loans payable

185million yen

Long-term loans payable

185million yen

Total

2. Accumulated depreciation of tangible fixed assets

370million yen

423,493million yen

3. Guarantees, etc.
The Company guarantees borrowing obligations of affiliated companies from financial institution, etc.
(1) Guarantees
Kaneka (Malaysia) Sdn. Bhd.

925million yen

PT.Kaneka Foods Indonesia

847million yen

Kaneka (Thailand) Co.,Ltd.

1,142million yen

Total

2,915million yen

4. Credits and debts against affiliated companies
Short term credits

67,278million yen

Long term credits

2,542million yen

Short term debts

36,795million yen

Notes to profit and statement
1.

Transactions with affiliated companies
Operating transactions
Sales

116,399million yen

Purchase

47,676million yen

Non-operation transactions

2.

20,948million yen

Business restructuring costs

In order to further strengthen the competitiveness of graphite sheets, for which demand is expected to grow in the future, theCompany has decided to reform its business structure through the achievement of radical production process innovation. As aresult of this restructuring, the following losses on obsolete manufacturing facilities and inventories were recorded as businessrestructuring costs:

3.

(1) Impairment of noncurrent assets

1,632 million yen(2) Loss on valuation of inventories

263 million yen

Impairment losses
The main assets groups for which impairment losses were recorded are as follows.
Place

Use
Type
Business assets
Machinery and equipment,
Mooka-city, Tochigi(Electronicmaterials
manufacturing facilities, etc.) etc.
The Company’s basic policy is to group its business assets primarily by Solutions Vehicle and by market similarity. Idle
assets are grouped by individual assets.
In connection with the business restructuring, for the Company’s Electronic materials manufacturing facilities, etc., thebook value of obsolete machinery and equipment, etc. was reduced to the recoverable amount, and the reduced amount of
1,632 million yen was included in the business restructuring costs and recorded as an extraordinary loss.
The recoverable amount is measured based on net realizable value, and the net realizable value is calculated based on thedisposal value.

4.

Product Warranty Expenses
The Company has recorded extraordinary losses for the cost of the countermeasures expected to be required in the future
relating to the replacement and repair of solar cell products, which were manufactured and sold by the Company in the past,
and which may have discolored in appearance.

Notes to statement of change in shareholders’ equity
The number and class of treasury shares at the end of the year
Common share

2,761,323shares

Notes to the deferred tax accounting
Main items of deferred tax assets and liabilities（Deferred tax assets）
Provision for retirement benefits

6,593million yen

Loss on valuation of shares of subsidiaries and4,192million yen

associates
Accrued expenses（bonuses）

1,114million yen

Loss on valuation of investment securities

207million yen

Impairment losses

780million yen

Provision for product warranties

712million yen

Other
Total gross deferred tax assets

2,609million yen
16,209million yen

Valuation allowance(5,119)million yen

Total deferred tax assets

11,090million yen（Deferred tax liabilities）
Valuation difference on available-for-sale securities(8,189)million yen

Reserve for tax purpose reduction entry of non-current(471)million yen

assetsOther(18)million yen

Total deferred tax liabilities(8,680)million yen

Net deferred tax assets (liabilities)

2,410million yen

Notes to related party transactions
Categories

Subsidiary

Subsidiary

Subsidiary

Subsidiary

VotingrightsName

KanekaCo., Ltd.

KanekeCorporation

KentechFoods

KanekaMedix
Corporation

Taiyo
Corporation

Yushi

Directholdings
100%

Directholdings
100%

Directholdings
100%

Directholdings
71.79%

Relationship

Sales
of
the
Company’s
products
Borrowing funds

Sales
of
the
Company’s
products
Borrowing funds

Sales
of
the
Company’s
products
Borrowing funds

Borrowing funds

TradeTransaction
amount(Million yen)

Sales
of
the
Company’s
products (note 1)
Borrowing funds(note 2)
Interest payments(note 2)
Sales
of
the
Company’s
products (note 1)
Borrowing funds(note 2)

10,901－
1
38,465－

Accounting
item
Accounts
receivabletrade
Short-termloans payable－

Finalbalance(Million
yen)
5,090
1,691
－

Accounts
receivabletrade
Short-termloans payable

10,2201,727Interest payments(note 2)
Sales
of
the
Company’s
products (note 1)
Borrowing funds(note 2)

17,825Interest payments(note 2)

3－－

Borrowing funds(note 2)－

Short-termloans payable

5,798Interest payments(note 2)

3

－

－

2

－

Conditions and policies for decision-making for the conditions(Note 1) The price of sales of products are determined by consideration of market prices, etc.
(Note 2) Interest rates of loans are reasonably determined by consideration of market rate.

Notes to per share information
Net assets per share

4,180.47 yen

Net income per share

434.52 yen－
Accounts
receivabletrade
Short-termloans payable

－
6,872
4,630

Copy of Accounting Auditor’s Audit Report

Independent Auditor’s Audit Report
May 10, 2022
To the Board of Directors of
KANEKA CORPORATIONKPMG AZSA LLC
Osaka Office
Designated Limited
Liability Partner &Engagement Partner
Designated Limited
Liability Partner &Engagement Partner
Designated Limited
Liability Partner &Engagement Partner

Certified Public
Accountant

Tomoyuki Ono

Certified Public
Accountant

Koji Narumoto

Certified Public
Accountant

Masato Tateishi

Audit Opinion
Pursuant to Article 436, Paragraph 2, Item 1 of the Companies Act, we have audited the financial statements,
which are comprised of the balance sheet, the statement of income, the statement of changes in shareholders’equity and the notes, and the supplementary schedules (the “financial statements, etc.”) of KANEKACORPORATION (the “Company”) for the 98th fiscal year from April 1, 2021 to March 31, 2022.
In our opinion, the financial statements, etc. referred to above present fairly, in all material respects, thestatus of the assets, and losses of the Company for the period for which the financial statements, etc. wereprepared in accordance with accounting principles generally accepted as fair and appropriate in Japan.
Basis for the Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted as fair and appropriate inJapan. Our responsibilities under those standards are described in “Auditor’s Responsibilities for the Audit of
the Financial Statements, etc.” In accordance with regulations regarding professional ethics in Japan, we are
independent from the Company, and we have fulfilled all other ethical responsibilities as an auditor. We havejudged that we obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Other Information
The other information is comprised of the business report and the supplementary schedules. Management
is responsible for the presentation and disclosure of the other information. The company auditors and the boardof company auditors are responsible for overseeing the directors’ performance of their duties with regard to
the development and operation of the Company’s reporting process for the other information.
Our audit opinion on the financial statements, etc. does not cover the other information and we do not
express any opinion thereon.
In connection with our audit of the financial statements, etc., our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements, etc. or our knowledge obtained in the audit, or otherwise appears to be materially
misstated, as well as to give consideration as to whether there is any sign of material misstatement in the otherinformation other than such material misstatement.
If, based on the work we have performed, we conclude that there is a material misstatement in the otherinformation, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management, Company Auditors, and the Board of Company Auditors for the Financial
Statements, etc.
Management is responsible for the preparation and fair presentation of the financial statements, etc. inaccordance with accounting principles generally accepted as fair and appropriate in Japan. This includes
developing and operating internal control as management determines is necessary to enable the preparationand fair presentation of financial statements, etc. that are free from material misstatement, whether due tofraud or error.

In preparing the financial statements, etc., management is responsible for assessing whether or not the
preparation of the financial statements, etc. using the going concern basis of accounting is appropriate, anddisclosing, as applicable, matters relating to a going concern in accordance with accounting principles
generally accepted as fair and appropriate in Japan.
The company auditors and the board of company auditors are responsible for overseeing the directors’
performance of their duties with regard to the development and operation of the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements, etc.
Our responsibilities are to obtain reasonable assurance about whether the financial statements, etc. as awhole are free from material misstatement, whether due to fraud or error, and to express our opinion on thefinancial statements, etc. in an auditor’s report based on our audit from an independent point of view.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the decision-making of those who use these financial
statements, etc.
In accordance with auditing standards generally accepted as fair and appropriate in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit while implementing thefollowing procedures.
・ Identify and assess the risks of material misstatement, whether due to fraud or error, and design and perform
audit procedures responsive to those risks of material misstatement. The selection and application of audit
procedures is at the auditor’s discretion. We obtain sufficient and appropriate audit evidence on which tobase its opinion.
・ We consider internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances in assessing risks, while the objective of the audit of the financial statements, etc. is
not to express an opinion on the effectiveness of internal control.
・ We evaluate the appropriateness of accounting policies used by the management and the application method
thereof, and the reasonableness of accounting estimates and the appropriateness of related notes made bymanagement.
・ We make a determination on the appropriateness of management’s use of the going concern basis ofaccounting, and based on the audit evidence obtained, whether a material uncertainty is deemed to exist
related to events or conditions that may cast significant doubt on the use of the going concern basis ofaccounting. If a material uncertainty is deemed to exist related to the use of the going concern basis ofaccounting, we are required to draw attention in our auditor’s report to the related notes to the financial
statements, etc. or, if such notes to the financial statements, etc. related to a material uncertainty are
inadequate, to express our qualified opinion with respect to the financial statements, etc. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause the Company to cease to continue as a going concern.
・We evaluate whether the presentation and notes in the financial statements, etc. are in accordance withaccounting standards generally accepted as fair and appropriate in Japan, the overall presentation, structure
and content of the financial statements, etc., including the relevant notes, and whether the financial
statements, etc. fairly represent the underlying transactions and accounting events.
We notify the company auditor and the board of company auditors of the planned scope and timing of theaudit, significant audit findings, including any significant inadequacy in internal control that we identify
during our audit, and other matters that are required to be reported under applicable auditing standards.
We also provide the company auditors and the board of company auditors with a statement that we havecomplied with professional ethical requirements in Japan regarding independence, and notify them of all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards to eliminate or mitigate factors that may hinder our independence.
Interest
Neither we nor our engagement partners have any interest in the Company which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.
EndCopy of Audit Report of Board of Company Auditors

Audit Report
In regard to the directors’ performance of their duties for the 98th fiscal year from April 1, 2021 to March
31, 2022, the board of company auditors has prepared this Audit Report after deliberations based on the audit
report prepared by each company auditor and reports as follows.
1. Method and Contents of Audits by the Company Auditors and the Board of Company Auditors(1) The board of company auditors determined the audit policies for this fiscal year, audit plan, etc. andreceived reports from each company auditor regarding the implementation status and results of theiraudits, in addition to which it received reports from the directors, etc. and the accounting auditor
regarding the status of the performance of their duties, and requested explanations as necessary.
(2) In compliance with the company auditor auditing standards established by the board of company
auditors and in accordance with the audit policies and audit plan, etc. of this fiscal year, each company
auditor communicated with the directors, the internal audit department, etc., endeavored to gather
information and develop the audit environment, and conducted audits using the following methods.
(i) The company auditors attended meetings of the board of directors and other important meetings,
received reports from directors, etc., regarding the status of the performance of their duties,
requested explanations as necessary, viewed important decision-making documents, etc., andinspected the status of operations and assets at the head office, etc. Additionally, in regard to
subsidiaries, the company auditors communicated and exchanged information with the directors
and company auditors, etc. of subsidiaries and requested business report as necessary, as well as
visited subsidiaries and inspected the status of operations and assets.
(ii) The company auditors verified the content of resolutions of the board of directors regarding thedevelopment of “systems to ensure that the directors’ performance of their duties complies withlaws, regulations and the articles of incorporation and other systems to ensure the appropriatenessof operations of a corporate group composed of a stock company and its subsidiaries (internal
control systems)” (Article 100, Paragraphs 1 and 3 of the Ordinance for Enforcement of theCompanies Act) as well as the development of the internal systems pursuant to such resolutions andthe status of its operations.
(iii) The company auditors considered the contents of “basic policy regarding the control of thecompany” stated in the business report.
(iv) The company auditors confirmed that the accounting auditor maintained an independent positionand conducted an appropriate audit, received reports from the accounting auditor on the status of
the performance of its duties, and requested explanations as necessary. Additionally, the company
auditors received notification from the accounting auditor that it had developed “systems in orderto ensure that its duties are appropriately performed” (the matters stated in the items of Article 131of the Ordinance on Accounting of Companies) and requested explanations as necessary.
Using the methods above, the board of company auditors examined the business report and the
supplementary schedules thereto, financial statements (i.e., the balance sheet, statement of income,statement of changes in shareholders’ equity, and notes to financial statements) and the supplementaryschedules to the financial statements, and the consolidated financial statements (i.e., the consolidatedbalance sheet, consolidated statement of income, consolidated statement of changes in shareholders’ equity,and notes to consolidated financial statements) for this fiscal year.
2. Audit Results(1) Results of audit of business report, etc.
(i) We find that the business report and the supplementary schedules thereto accurately present thestatus of the company in accordance with laws, regulations, and the articles of incorporation.
(ii) We do not find any misconduct nor any material fact constituting a violation of any law, regulation,or the articles of incorporation in relation to the directors’ performance of their duties.
(iii) We find the content of the resolutions of the board of directors regarding internal control systems
to be reasonable. Additionally, the internal control systems are continuously improved. We do notfind any matters that should be commented upon in regard to the statements in the business reportor the directors’ performance of their duties.
(iv) We do not find any matters that should be commented upon in regard to the basic policy regarding
the control of the company.
(2) Results of audit of financial statements and supplementary schedules thereto
We find the methods and results of the audit by the accounting auditor, KPMG AZSA LLC, to be reasonable.
(3) Results of audit of consolidated financial statements
We find the methods and results of the audit by the accounting auditor, KPMG AZSA LLC, to be reasonable.

May 11, 2022
Board of company auditors of KANEKA CORPORATION
Full-time company auditor
Hideyuki Matsui
Full-time company auditor
Masami Kishine
Outside company auditor
Hiroshi Fujiwara
Outside company auditor
Yasuhiro Uozumi[Seal][Seal][Seal][Seal]