Financial Summary

Fiscal Year Ended June 30, 2023

August 9, 2023

I N D E X

Highlights

Business Performance by Segment

Consolidated Balance Sheets

Consolidated Business Forecasts

0１

02

07

08

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

Operating income

Ordinary income

Net income attributable to owners of parent

Operating income margin Net income per share

Exchange rate (to USD) Exchange rate (to EURO) Domestic Naptha Price (per kl)

FY2022

FY2022

FY2022

FY2022

FY2023

1Q(Apr.-Jun.)

2Q(Jul.-Sep.)

3Q(Oct.-Dec.)4Q(Jan.-Mar.)1Q(Apr.-Jun.)

192.7

187.9

186.5

188.7

182.7

12.2

8.6

6.8

7.5

5.6

14.8

7.8

4.1

5.8

6.7

10.5

6.1

2.3

4.1

4.2

6.3%

4.6%

3.6%

4.0%

3.1%

¥161.22

¥91.81

¥34.87

¥62.84

¥65.35

¥129.7

¥138.3

¥141.4

¥132.4

¥137.5

¥138.3

¥139.3

¥144.3

¥142.2

¥149.6

¥86,100

¥81,400

¥72,500

¥66,500

¥67,500

(Billions of yen)

Difference(YoY)

Amount

%

(10.0)

(5.2%)

(6.6)

(54.1%)

(8.1)

(54.8%)

(6.3)

(59.7%)

State of the Global Economy - Prevailing sense of stagnation with weak recovery momentum -

  • The global economy remained sluggish due to ongoing inflation and tightening of monetary policy in Europe and the U.S., and economic slowdown reflecting China's faltering recovery.
  • The pace of economic recovery is uncertain with weak performance in the manufacturing sector, while some recovery is noted in the service sector.

Kaneka Group's Business Performance

- Sales and profits decreased regardless of solid performance in Health Care SU and Nutrition SU -

ⓒ2023 Kaneka Group All rights reserved. 1

Business Performance by Segment

(Billions of yen)

Material SU

Quality of Life SU

Health Care SU

Nutrition SU

Others

Total

Material SU

Quality of Life SU

Health Care SU

Nutrition SU

Others

Adjustment

Total

Net sales

FY2022

FY2023

1Q

2Q

3Q

4Q

1Q

88.9

84.0

77.8

83.1

77.7

45.0

42.2

43.8

41.8

40.9

16.6

17.4

18.7

18.1

17.7

41.9

44.1

46.0

45.4

46.0

0.3

0.2

0.2

0.3

0.4

192.7

187.9

186.5

188.7

182.7

Operating income

FY2022

FY2023

1Q

2Q

3Q

4Q

1Q

10.8

7.9

3.8

5.0

5.5

4.6

4.1

4.4

3.1

2.9

3.9

3.7

4.5

3.7

3.0

0.8

1.3

2.3

3.2

2.3

0.2

0.1

0.1

0.2

0.3

(8.0)

(8.5)

(8.2)

(7.6)

(8.4)

12.2

8.6

6.8

7.5

5.6

Difference(YoY)

Amount

%

(11.3)

(12.7%)

(4.1)

(9.2%)

1.1 6.7%

4.2 9.9%

0.1 32.6%

(10.0) (5.2%)

Difference(YoY)

Amount %

(5.2) (48.7%)

(1.7) (36.1%)

(0.9) (23.1%)

1.5 182.3%

0.1 54.1%

(0.4) -

(6.6) (54.1%)

※SU：Solutions Unit

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Performance

Net Sales

Billions of yen

88.9

77.7

FY2022

FY2023

1Q(Apr.-Jun.)

1Q(Apr.-Jun.)

Operating Income

Billions of yen

10.8

5.5

FY2022

FY2023

1Q(Apr.-Jun.)

1Q(Apr.-Jun.)

（Material Solutions Unit）

Affected by a prolonged economic slowdown in Europe, the U.S., and Asia, resulting in lower sales and profits

Vinyls and Chlor-Alkali

  • Sales of both PVC and caustic soda were affected by the stagnant Chinese economy and a significant decline in the Asian market.

Performance Polymers（MOD）

  • Demand-supplyadjustments for construction use are prolonged on the back of ongoing inflation and high interest rates in Europe and the U.S., resulting in low sales volume.
  • Shipment level of non-PVC products also remained low.

Performance Polymers（MS）

  • Sign of recovery is seen from the late 1Q despite a weak construction demand in the U.S. and Europe.
  • To address the rising global demand, we are rapidly considering the next capacity expansion in the U.S., following the ongoing construction to increase capacity in Belgium.

Green Planet

  • Steady progress has been made in joint development and product launch with major brand holders in Japan, the U.S., and Europe.
  • Rapidly expanding the scope of applications by establishing various processing technologies.
  • Resource recycling initiative using waste cooking oil has also accelerated.
  • Innovative project to produce Green Planet from CO2 and H2, which was selected for NEDO*'s "Green

Innovation Fund Project," has started in full swing.

* New Energy and Industrial Technology Development Organization

ⓒ2023 Kaneka Group All rights reserved. 3

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Kaneka Corporation published this content on 18 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2023 08:20:02 UTC.