Financial Summary

Fiscal Year Ended March 31, 2023

May 12, 2023

Highlights

0１

Operating Results by Segment

0２

Remarks on the Group-wide Business

0３

Performance

Business Performance by Segment

05

I N D E X

Consolidated Balance Sheets

09

Consolidated Statements of Cash Flows

10

Investmentｓ, Depreciation, R&D Expenses

11

Shareholder Returns

12

Consolidated Business Forecasts

13

Forecasts of the operating results and 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 any other forward-looking statements.

Highlights

Net sales

FY2021

FY2022

691.5

755.8

Change

Amount %

64.3

9.3%

Previous forecast (Feb. 8, 2023)

756.0

(Billions of yen)

Rate of

achievement

99.9%

Operating income

Ordinary income

Net income attributable to owners of parent

Operating income margin

Net income per share

Dividend per share

ROE

Exchange rate (to USD)

Exchange rate (to EURO)

Domestic Naptha Price (per kl)

43.6

35.1

40.8

32.4

26.5

23.0

6.3%

4.6%

¥406.01

¥349.59

¥110.00

¥110.00

7.1%

5.7%

¥112.4

¥135.5

¥130.6

¥141.0

¥56,625

¥76,625

(8.5)

(19.5%)

(8.4)

(20.6%)

(3.5) (13.1%)

36.5 96.1%

34.0 95.3%

24.0 95.9%

State of the Global Economy - The whole economy is stagnant, with a growing sense of economic slowdown -

  • While the global economy was recovering from the COVID-19 pandemic, a sense of slowdown became increasingly apparent as situations such as the stalemate in Ukraine, the soaring of energy and resource prices, ongoing inflation, and tightening of monetary policy were intricately intertwined.
  • Under such an increasingly uncertain business environment, we will sharpen our awareness of the times and further enhance our adaptability to confront the post-COVID-19 world.

Kaneka Group's Business Performance - Sales increased and profits decreased, but leading-edge businesses grown -

ⓒ2023 Kaneka Group All rights reserved. 1

Operating Results by Segment

Net sales

(Billions of yen)

FY2021

FY2022

Change (YoY)

1Q

2Q

3Q

4Q

Total

1Q

2Q

3Q

4Q

Total

Amount

%

Material SU

70.0

70.9

76.3

82.7

299.9

88.9

84.0

77.8

83.1

333.9

33.9

11.3%

Quality of Life SU

40.9

41.9

43.4

42.9

169.1

45.0

42.2

43.8

41.8

172.8

3.7

2.2%

Health Care SU

13.2

13.4

15.4

16.9

58.9

16.6

17.4

18.7

18.1

70.8

11.8

20.1%

Nutrition SU

39.8

39.7

43.1

40.0

162.6

41.9

44.1

46.0

45.4

177.3

14.8

9.1%

Others

0.3

0.2

0.2

0.3

1.1

0.3

0.2

0.2

0.3

1.1

0.0

1.1%

Adjustment

-

-

-

-

-

-

-

-

-

-

-

-

Total

164.1

166.2

178.4

182.8

691.5

192.7

187.9

186.5

188.7

755.8

64.3

9.3%

Operating income

FY2021

FY2022

Change (YoY)

1Q

2Q

3Q

4Q

Total

1Q

2Q

3Q

4Q

Total

Amount

%

Material SU

9.3

8.7

8.3

10.1

36.4

10.8

7.9

3.8

5.0

27.4

(8.9)

(24.6%)

Quality of Life SU

4.6

4.7

4.5

3.2

16.9

4.6

4.1

4.4

3.1

16.1

(0.8)

(4.8%)

Health Care SU

2.3

2.9

3.2

4.2

12.7

3.9

3.7

4.5

3.7

15.7

3.0

23.8%

Nutrition SU

1.4

0.7

1.6

1.4

5.1

0.8

1.3

2.3

3.2

7.6

2.5

49.2%

Others

0.2

0.1

0.1

0.2

0.5

0.2

0.1

0.1

0.2

0.6

0.1

10.6%

Adjustment

(6.0)

(5.9)

(7.3)

(8.9)

(28.0)

(8.0)

(8.5)

(8.2)

(7.6)

(32.3)

(4.3)

-

Total

11.8

11.2

10.3

10.2

43.6

12.2

8.6

6.8

7.5

35.1

(8.5)

(19.5%)

※SU：Solutions Unit

ⓒ2023 Kaneka Group All rights reserved. 2

Remarks on the Group-wide Business Performance

Demand adjustment affected Material SU, but portfolio transformation progressing steadily

Prolonged Demand Adjustment in

Steady Growth in Leading-edge Businesses

Material and Electronics Markets

Demand for material-based products continued to decline as the global economic slowdown spread from 2Q. In addition, the supply-demand adjustment was prolonged in the supply chain for E & I Technology. This demand adjustment bottomed out in 3Q, but the recovery momentum was found to be weaker than expected in 4Q.

  • Vinyls：PVC Asian market conditions stayed sluggish.

MOD：Not recovered as we had expected in the building materials and construction markets in Europe and the U.S.

  • E&I：Performance remained weak due to a prolonged demand adjustment for smartphones and large-screen TVs since 2Q.

Fiber：Demand for hair accessory products remained sluggish against the backdrop of higher inflation in African countries.

Both of these markets have been gradually recovering since 4Q, and a full-scale market recovery is expected in the next fiscal year.

Our leading-edge businesses saw a steady growth in Health Care Solutions Unit, Supplemental Nutrition and PV & Energy management by providing solutions to crises on health, global environment, and energy, even in the midst of the global economic turmoil.

  • Medical：Sales of the blood purification devices and catheters grew in both Japan and overseas.

Pharma：Bio-CDMO and small molecule pharmaceuticals performed well.

  • Supplement：Probiotics business started contributing to profitability in addition to the active form of coenzyme(単Q10位：億.円)
  • PV：Amid the global energy crisis, our PV products have successfully responded to growing demand for photovoltaic modules for residential use. At the same time, we have made progress in initiatives contributing to CO2 reduction, such as self- consignment and microgrids. Full-scale delivery of in-vehicle PV has also begun.

ⓒ2023 Kaneka Group All rights reserved. 3

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Kaneka Corporation published this content on 23 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2023 05:49:01 UTC.