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1 Quarterly Financial Results for the First Quarter, Ended June 30, 2017 (Japanese GAAP, Consolidated) August 8, 2017 Name of Listed Company: Kaneka Corporation Stock Exchange Listings: Tokyo, Nagoya Code Number: 4118 URL Representative: Mamoru Kadokura Title: President, Representative Director Contact Person: Osamu Ishida Title: Officer Investor & Public Relations Department Phone: Scheduled date for submitting financial statements: August 10, 2017 Scheduled date of dividend distribution: Note: Figures have been rounded down to the nearest million yen. 1. Consolidated Business Performance for the First Quarter, Ended June 30, 2017 (from April 1, 2017 to June 30, 2017) (1) Consolidated business performance (cumulative) (% indicates year-on-year change) Net income attributable Net sales Operating income Ordinary income to owners of parent million % million % million % million % Apr Jun , ,252 (17.4) 7, , Apr Jun ,058 (2.4) 8, ,131 (11.3) 4,600 (10.7) Note: Comprehensive income(loss): 10,372 million ( %) three months ended June 30, 2017 ( 2,245) million ( %) three months ended June 30, 2016 Net income per share Fully diluted net income per share Apr Jun Apr Jun (2) Consolidated financial position Total assets Net assets Shareholders equity ratio million million % As of Jun 30, , , As of March 31, , , (Reference) Shareholders equity: 310,790 million as of June 30, ,149 million as of March 31, Dividends Annual dividends 1st Quarter 2nd Quarter 3rd Quarter Year-end Annual Apr Mar Apr Mar Apr Mar (Forecasts) Note: Changes in dividend forecast during the quarter under review: No 3. Forecast for consolidated business performance for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018) (Percentage figures represent changes from the corresponding periods of the previous fiscal year) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share million % million % million % million % Full year 610, , , , Note: Revisions to consolidated business performance forecasts during the quarter under review: No

2 4. Other (1) Changes in principal subsidiaries during the term: No (2) Application of simplified methods of accounting and specific accounting methods: No (3) Changes in accounting principles, changes in estimates, or restatements 1. Changes owing to revisions in accounting standards: No 2. Changes other than 1. above: No 3. Changes in accounting estimates: No 4. Restatements: No (4) Number of shares outstanding (common stock) 1. Number of shares issued at the end of the period June 30, ,000,000 (including treasury stock): shares 2. Shares of treasury stock at the end of the period: June 30, ,470, Average number of shares during the period (calculated cumulatively from the beginning of the fiscal year) shares June 30, ,963,118 shares March 31, ,000,000 shares March 31, ,834,211 shares June 30, ,663,263 shares (These financial statements are exempt from audit procedures) (Explanations or other items pertaining to appropriate use of operating results forecasts) 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. For cautionary items used in operating results forecasts, please refer to (3) Consolidated Business Forecasts under 1. Quarterly Consolidated Business Performance on page 3.

3 Supplementary Materials Contents 1. Quarterly Consolidated Business Performance P. 2 (1) Consolidated Business Performance P. 2 (2) Consolidated Financial Position P. 3 (3) Consolidated Business Forecasts P Quarterly Consolidated Financial Statements P. 4 (1) Quarterly Consolidated Balance Sheets P. 4 (2) Quarterly Consolidated Statements of Income and Comprehensive Income P. 6 (3) Quarterly Consolidated Statements of Cash Flows P. 8 (4) Notes to the Consolidated Financial Statements P. 9 (Notes on the Premise of a Going Concern) P. 9 (Notes in the Event of Significant Changes in the Amount of Shareholders Equity) --- P. 9 (Segment Information) P. 9 1

4 Quarterly Financial Results for the First Quarter, Ended June 30, 2017, Kaneka Corporation (4118) 1. Quarterly Consolidated Business Performance (1) Consolidated Business Performance The global economy remained solid during the first quarter (April 1, 2017 to June 30, 2017). The Kaneka Group reported consolidated net sales of 144,302 million (up 6.1% year on year), the highest on record, due to a sales increase mainly in the overseas market. Ordinary income was 7,151 million (up 0.3% year on year), and net income attributable to owners of parent was 4,761 million (up 3.5% year on year). Operating income was 7,252 million (down 17.4% year on year) due to the impact of a sharp increase in certain raw material prices. Operating performance by business segment was as follows: 1) Material In the Performance Polymers business, with strong demand of modifier continuing, a new facility in Malaysia started operation in March 2017, eliminating a shortage in production capacity and greatly increasing sales volume. However, due to an abrupt change in the market price of the major raw material butadiene, which the Group procured in large quantities in preparation for the full operation of the new facility, the profitability of the business dropped sharply in the first quarter. After the second quarter, the Group is forecasting further earnings expansion, as the temporary impact of butadiene price will be eliminated and sales will be expanded due to increasing production capacity. The sales volume of modified silicone polymers increased steadily due to expanding applications globally. In addition, a new production facility in Malaysia started operation in July 2017 as planned, and the product sales have already begun. In the Vinyls and Chlor-Alkali business, general PVC resins and caustic soda continued to see firm sales in the Asian market, and sales of Specialty PVC resins such as Chlorinated PVC expanded steadily, mainly in the US market. 2) Quality of Life In the Foam & Residential Techs business, despite an increase in sales volume, profits declined due to the impact of rising prices of major raw materials such as styrene monomer. In the second quarter, which is the demand season, the business will see a sales price adjustment and sales volume expansion. In the Performance Fibers business, the pile market saw the return of strong demand and the hair accessory market also saw demand recover after reaching a bottom in the third and fourth quarters over the previous fiscal year. However, profitability deteriorated as the Group was not able to maximize the competitiveness of the newly established Malaysia plant along with the rise in raw material prices. After the second quarter, profitability is expected to improve due to recovery in demand and the full-scale contribution of products produced in Malaysia. In the E&I Technology business, where the demand is steadily expanding, profit improved due to an increase in sales volume of high-functional products such as Pixeo and progress on the supply system for ultra-heat-resistant polyimide film, which had been delayed. After the second quarter, there will be additional large-scale demand, such as new models of a major smartphone maker for which there have been frequent inquiries. We will promote sales expansion to boost profitability by strengthening capacity-enhanced facilities. In the PV & Energy management business, the sales of high efficiency roof-tile-integrated photovoltaic modules to major house makers, launched last year, expanded steadily. Looking ahead, we will commit to providing energy solutions that contribute to net zero energy houses, centering on the photovoltaic modules business. 3) Health Care Sales of the Medical Devices business remained solid in the domestic and overseas markets. After the second quarter, we will further advance our joint business in vascular intervention with other companies and expand sales of the blood purification business by strengthening marketing structure in the US. In the Pharma business, sales of active pharmaceutical ingredients (API) and biopharmaceuticals expanded steadily, although the sales volume of pharmaceutical intermediates decreased compared the first quarter of fiscal 2016, where sales were concentrated. 2

5 Quarterly Financial Results for the First Quarter, Ended June 30, 2017, Kaneka Corporation (4118) 4) Nutrition In the Foods & Agris business, sales expanded due to a proposal-based approach to major suppliers of bakery products, convenience stores, and food product manufacturers, which have strengths in new foodstuffs. In the Supplemental Nutrition business, profitability improved due to an increase in public recognition of the reduced form of coenzyme Q10 and productivity enhancements. The Group expect to expand sales in the US market from the second quarter. (2) Consolidated Financial Position 1) Status of Assets, Liabilities and Equity Total assets were 599,284 million as of June 30, 2017, down 6,384 million compared with March 31, 2017 due to increases in investment securities and noncurrent assets. Liabilities totaled 271,853 million, up 504 million due to an increase in accrued expenses. Net assets (equity) increased by 5,879 million to 327,430 million due to increases in the valuation difference on available-for-sale securities and in retained earnings. 2) Consolidated Cash Flows Net cash provided by operating activities during the first quarter was 8,844 million, mainly due to income before income taxes and depreciation and amortization, while net cash used in investing activities amounted to 9,842 million, mainly due to the purchase of property, plant and equipment. Net cash used in financing activities came to 5,711 million, mainly owing to cash dividends paid. As a result, cash and cash equivalents as of June 30, 2017 totaled 34,444 million, mainly due to cash dividends paid and purchase of treasury stock. (3) Consolidated Business Forecasts Looking ahead, the global economy is expected to follow a gradual recovery trend, uncertainties remain, such as political trends in key countries, economic conditions in emerging nations, and geopolitical risks. In this business environment, in the E&I Technology business the Company expects an increase in sales to major smartphone makers for new models, and the Performance Fibers business it expects an increase in sales in the Asian and African markets from the second quarter. In addition, the impact of sharp increase in raw material prices will be eliminated, and the Group will expand sales of modifiers and modified silicone polymers, which are experiencing strong demand due to strengthening of production capacity. Therefore, the Group has not revised its fullyear consolidated business forecast for the fiscal year ending March

6 2. Quarterly Consolidated Financial Statements (1) Quarterly Consolidated Balance Sheets FY2016 FY2017 1st Quarter Term ended March31, 2017 Term ended June 30,

7 FY2016 FY2017 1st Quarter Term ended March31, 2017 Term ended June 30,

8 6

9 Quarterly Consolidated Statements of Comprehensive Income FY2016 1st Quarter FY2017 1st Quarter From April 1, 2016 to June 30, 2016 From April 1, 2017 to June 30,

10 (3) Quarterly Consolidated Statement of Cash Flows FY2016 1st Quarter FY2017 1st Quarter From April 1, 2016 to June 30, 2016 From April 1, 2017 to June 30,

11 (4) Notes to the Consolidated Financial Statements (Notes on the Premise of a Going Concern) Not applicable Quarterly Financial Results for the First Quarter, Ended June 30, 2017, Kaneka Corporation (4118) (Notes in the Event of Significant Changes in the Amount of Shareholders Equity) Not applicable (Segment Information) Term from April 1, 2016 to June 30, ) Sales and Income (Loss) by Segments Material Segment Information Quality of Life Health Care Nutrition Total Others (Note)1 Total Adjustment Figures in consolidated financial statements (Note)2 Sales Customers 50,090 34,362 11,885 39, , , ,058 Intersegment (673) Total 50,365 34,366 11,885 39, , ,732 (673) 136,058 Segment profit 5,674 4,513 2, , ,039 (5,260) 8,779 (Note) 1 Others is a business segment that is not included in the reporting segments and includes property insurance and life insurance business. 2 Segment profit is reconciled with operating income in the quarterly consolidated financial statements. 2) Reconciliations between Segment Total and Quarterly Consolidated Statements of Income (Adjustments) Income Amount Segment total 13,934 Segment profit of Others 104 Elimination of intersegment transactions (13) Companywide expenses (Note) (5,255) Other adjustments 9 Operating income in the quarterly consolidated statements of income 8,779 (Note) Companywide expenses primarily are expenses for basic R&D that are not allocable to any reporting segment. 9

12 Term from April 1, 2017 to June 30, ) Sales and Income (Loss) by Segments Material Segment Information Quality of Life Health Care Nutrition Total Others (Note)1 Total Adjustment Figures in consolidated financial statements (Note)2 Sales Customers 57,034 35,618 11,209 40, , , ,302 Intersegment (595) Total 57,347 35,624 11,209 40, , ,897 (595) 144,302 Segment profit 5,747 2,839 2,364 1,220 12, ,416 (5,164) 7,252 (Note) 1 Others is a business segment that is not included in the reporting segments and includes property insurance and life insurance business. 2 Segment profit is reconciled with operating income in the quarterly consolidated financial statements. 2) Reconciliations between Segment Total and Quarterly Consolidated Statements of Income (Adjustments) Income Amount Segment total 12,172 Segment profit of Others 244 Elimination of intersegment transactions 0 Companywide expenses (Note) (5,173) Other adjustments 9 Operating income in the quarterly consolidated statements of income 7,252 (Note) Companywide expenses primarily are expenses for basic R&D that are not allocable to any reporting segment. 10

13 Financial Results for the Term Ended March 31, 2017, Kaneka Corporation (4118) 3) Concerning Changes in Reporting Segments, etc. In the Kaneka Group s mid-term management vision newly started in fiscal 2017, we radically reformed our management system in order to accelerate contribution to development of society through creating new value by technological innovation, including IoT and AI, and solving various problems facing society: issues of global environmental protection, population growth, food supply, and improving public health in an ageing society. Our business divisions have been renamed " Vehicle" that aim to become organizations implementing growth strategy from the perspective of achieving solutions. In addition, we reorganized our business structure so as to make these nine " Vehicle" be consistent with four new business domains known as "." As a result of this reform of management system, the conventional reporting segments of Chemicals, Functional Plastics, Expandable Plastics and Products, Foodstuffs Products, Life Science Products, Electronic Products, and Synthetic Fibers and Others have reclassified into new reporting segments which reflected the new business domains from the first quarter of the fiscal year. Segment information for the first quarter of the fiscal year ended March 31, 2017 has been prepared based on the segment classification after the change. The Vehicles and main products that belong to each reporting segment are as follows. (Reporting Segments) Material Quality of Life Vehicle Vinyls and Chlor-Alkali Performance Polymers Foam & Residential Techs E & I Technology PV & Energy management Performance Fibers Acrylic synthetic fibers Main products General PVC resins, Caustic soda, Specialty PVC resins Modifiers, Modified silicone polymers, Biopolymer Expandable polystyrene resins and products, Extruded polystyrene foam boards, Bead-method polyolefin foam, Solar Circuit construction method (external insulation and double ventilation construction) products Ultra-heat-resistant polyimide films, Optical materials, High thermal conductive graphite sheet Photovoltaic modules Energy storage batteries for residences Health Care Nutrition Medical Devices Pharma & Supplemental Nutrition (Pharma) Pharma & Supplemental Nutrition (Supplemental Nutrition) Foods & Agris Medical devices Pharmaceuticals (API) Intermediates, Biopharmaceuticals Functional foodstuffs Margarine, Shortening, Bakery yeast, Spices, Antifreeze proteins, Functional fertilizers, Feeds 11

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A9R1r84dox_1a6k9b0_1k4.tmp Quarterly Financial Results for the First Quarter, Ended June 30, 2016 (Japanese GAAP, Consolidated) August 8, 2016 Name of Listed Company: Kaneka Corporation Stock Exchange Listings: Tokyo, Nagoya Code