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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . The Company assumes no responsibility for this translation or for direct , indirect or any other forms of damages arising from the translation . Business Results for the First Quarter of Fiscal Year Ending March 31 , 2027 ( April 1 , 2026 - - June 30 , 2026 ) August 10 , 2026 ( Tokyo Stock Exchange Prime Market , Securities Code : 4047 ) пе KANTO DENKA KOGYO
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Q1 FY2025 Q1 FY2026 Difference % change Net sales 15.1 19.7 4.6 30.6 Operating profit 0.7 3.9 3.1 410.7 Ordinary profit 0.7 4.5 3.8 515.5 Profit before income 0.7 4.5 3.8 522.2 Profit attributable to owners of parent 0.5 3.2 2.7 509.3 Basic earnings per share (yen) 9.24 56.41 47.17 Statement of Income © Kanto Denka Kogyo Co., Ltd. All rights reserved. 2 （Billions of yen） Net sales of specialty gases for semiconductors increased year over year due to higher volumes supported by improved operating rates and favorable effects from price revisions. Net sales of battery materials also increased due to expanded demand in North America. Operating profit increased year over year despite higher raw material and fuel prices, supported by the increase in net sales. WF6 continues production by diversifying its tungsten procurement sources.
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Balance Sheet © Kanto Denka Kogyo Co., Ltd. All rights reserved. 3 1. FY2025 Q1 FY2026 Difference % change Assets 131.3 140.7 9.4 7.2 Cash and deposits 20.2 18.6 -1.5 -7.8 Trade receivables 18.8 21.0 2.1 11.6 Inventories 21.1 27.8 6.6 31.3 Non-current assets (tangible + intangible) 53.4 52.0 -1.3 -2.5 Liabilities 57.0 62.7 5.7 10.0 Interest-bearing debt 39.8 42.4 2.5 6.5 Trade payables 9.3 11.2 1.8 20.0 Income taxes payable 1.1 1.7 0.5 42.8 Net assets 74.2 77.9 3.6 5.0 Equity ratio (%) 55.1 54.1 -1.0 （Billions of yen）
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Q1 FY2025 Q1 FY2026 Difference Q1 FY2025 Q1 FY2026 Difference Fundamental Chemicals 1.9 2.0 0.1 0.0 0.0 0.0 Fine Chemicals 11.9 16.5 4.5 0.5 3.7 3.1 Other* 1.2 1.1 -0.0 0.1 0.1 -0.0 Total 15.1 19.7 4.6 0.7 3.9 3.1 (Reference) Specialty gases (non-consolidated) 10.3 14.3 4.0 0.7 4.2 3.4 (Reference) Loss on valuation of inventories - - - (0.6) (0.6) -0.0 Capital investment 3.1 0.9 -2.2 Depreciation 1.8 2.3 0.4 R&D expenses 0.5 0.5 0.0 Operating profitNet sales Performance By Segment © Kanto Denka Kogyo Co., Ltd. All rights reserved. 4 * "Other" includes the Ferrochemicals, Commercial Business, Facilities Divisions, and consolidation adjustments. （Billions of yen）
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0.77 +69.5 -28.6 -4.3 -0.1 -4.5 39.7 0.0 2.0 4.0 6.0 8.0 (Q1 FY2025) Operating profit Sales/production Raw material and fuel prices Depreciation Inventory impact Other (Q1 FY2026) Operating profit Consolidated Operating Profit: Difference Analysis (Q1 FY2025 vs. Q1 FY2026) © Kanto Denka Kogyo Co., Ltd. All rights reserved. 5 （Billions of yen） ⇧Fixed cost: +0.49 ⇩ Consolidation adjustments: -9.2 ⇩ Subsidiaries: -0.2 ⇧Specialty gases unit prices up ⇧Battery materials : : Sales volumes, unit prices up ⇩Tungsten, Lithium compounds, Hydrogen fluoride, ethylene
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FY2026 H1 initial forecast FY2026 H1 revised forecast Difference FY2026 H1 initial forecast FY2026 H1 revised forecast Difference Fundamental Chemicals 4.3 4.3 - -0.3 -0.3 - Fine Chemicals 35.6 35.6 - 5.4 6.7 1.3 Other* 2.3 2.3 - 0.2 0.2 - Total 42.2 42.2 - 5.3 6.6 1.3 FY2026 initial forecast FY2026 revised forecast Difference FY2026 initial forecast FY2026 revised forecast Difference Fundamental Chemicals 8.5 8.5 - 0.1 0.1 - Fine Chemicals 81.8 81.8 - 9.6 10.9 1.3 Other* 4.7 4.7 - 0.3 0.3 - Total 95.0 95.0 - 10.0 11.3 1.3 Net sales Operating profit Net sales Operating profit (loss) Performance Adjustment (by Segment) © Kanto Denka Kogyo Co., Ltd. All rights reserved. 6* "Other" includes the Ferrochemicals, Commercial Business, Facilities Divisions, and consolidation adjustments. Net sales are expected to remain in line with the plan. Operating profit is expected to increase despite higher raw material and fuel prices, supported by factors such as price revision effects for specialty gases for semiconductors. The full-year earnings forecast is being reviewed for the impact of fluctuations in raw material and fuel prices; therefore, performance projections from the second quarter onward are kept unchanged from the initial plan （Billions of yen）
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© Kanto Denka Kogyo Co., Ltd. All rights reserved. 7 Notes • This document does not constitute disclosure material as defined by the Financial Instruments and Exchange Act and other laws and regulations, and therefore the Company does not guarantee its accuracy or completeness. • Performance forecasts in this document were created based on information available as of the date of this document's publishing, and actual results may differ versus forecasted figures due to a variety of factors arising in the future.