November 8, 2018

Kaneka Corporation

Contents

Summary

Net Sales, Operating Income by Quarter

Net Sales , Operating Income by Segments

Business Performance by Segments

Consolidated Balance Sheet

Consolidated Cash Flow

Consolidated Business Forecasts

10

The operating results forecasts and certain other statements contained in this document are forward-looking statements, which are rationally determined based on information currently available to the company. For a variety of reasons, actual performance may differ substantially from these projections. They

do not constitute a guarantee that the Company will achieve these forecasts or other forward-looking statements.

(Billions of yen)

Amount

* The Company conducted a consolidation of shares of common stock at the ratio of five shares to one share on October 1, 2018. Net income per share was calculated using the number of shares after the share consolidation.

  • Net sales reached a new record high for the first half.

  • Operating income, ordinary income, and net income attributable to owners of parent each recorded double-digit increases.

  • Priority-focused businesses, where the Company bolstered production capacity, expanded globally and drove growth.

Net sales (Billions of yen)

Operating income (Billions of yen)

FY2017

  • 2Q net sales exceeded ¥150 billion for four consecutive quarters.

  • Operating income was temporarily impacted by damage caused by earthquakes, typhoons and other natural disasters, but the businesses which the Company prioritized and focused on strengthening, performed steadily.

(Billions of yen)

1Q

2Q

3Q

4Q

1Q

Net sales

144.3

148.0

153.7

150.2

152.3

153.8

Operating income

7.3

8.6

10.5

10.5

10.0

8.0

FY2018

2Q

(Millions of yen)

Amount

Amount

12,248

6,853

4,228

2,549

339

10,340

15,879

  • In the Vinyls and Chlor-Alkali business, sales were favorable for PVC resins and caustic soda both in Japan and overseas.

  • In the Performance Polymers business, sales expanded as bolstered globally production capacity contributed.

  • In the E & I Technology business, sales were favorable, supported by increased demand for smartphones with higher functionality.

  • In the Performance Fibers business, demand for hair accessories in the African market made a full-fledged recovery.

The Foam & Residential Techs business was impacted by typhoons, earthquakes, etc.

In the Medical Devices business, sales increased in overseas markets, offsetting the negative impact of the revision of medical reimbursement prices in Japan. The Pharma business saw steady sales of biopharmaceuticals.

The Foods & Agris business worked to stimulate demand through proactive proposal-based sales, amid sluggish conditions in the markets for bakery products.

In the Supplemental Nutrition business, sales of the reduced form of coenzyme Q10 continued to increase.

Net sales

Operating income

Material Solutions Unit

124,391

8,918

7.7%

Quality of Life Solutions Unit

74,623

78,883

4,259

5.7%

Health Care Solutions Unit

21,675

23,680

2,004

9.2%

Nutrition Solutions Unit

79,857

78,546

1,310

1.6%

Others

628

551

7712.3%

Adjustment

-

-

--

Total

292,258

306,053

13,795

4.7%

14,189

15.8%

7,628

774

11.3%

4,673

444

10.5%

2,173

37614.8%

258

8023.8%

10,906

565

-

18,016

2,137

13.5%

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Disclaimer

Kaneka Corporation published this content on 16 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 November 2018 05:58:08 UTC