Slides
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Denka Possibility of chemistry Note : This slide deck has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated slide and the Japanese original , the original shall prevail . Copyright © Denka Co. , Ltd. All Rights Reserved . Results Presentation of FY2026 1Q ( The 1st 3 Months of the Fiscal year ending March 2027 ) Securities code : 4061 Denka Co. , Ltd August 7 , 2026
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Latest Status of Products for AI: SNECTON, Spherical Fused Silica (Low Dielectric Loss Tangent Grade) ◼ Soft-type SNECTON: steady progress in de facto standardization ◼ Spherical fused silica (low dielectric loss tangent grade): demand continues to expand Spherical fused silica (low dielectric loss tangent grade)Soft-type SNECTON Hard-type SNECTON (under development) Insulating substrate Copper foil Copper foil Hard resin Filler Glass clothSoft resin Glass cloth Constituent materials of rigid copper-clad laminates (rigid CCLs) *SNECTON: low dielectric organic insulation resin. The only material that combines an exceptionally low Df (dielectric dissipation factor), which significantly reduces transmission loss, with excellent processability [New] New low dielectric organic filler launched (details on next page) Further strengthening the Company's organic/inorganic materials approach—a core capability of the Company Low dielectric organic filler (under development) [May] Dedicated plant completed [August] Samples were shipped from the new plant as scheduled, and certification procedures are progressing Steady progress in de facto standardization in the latest grade (M9 equivalent) Evaluation results for the next- generation grade (M10 equivalent) are also favorable [May] Products under development are being evaluated by each company Final-stage consideration of capacity expansion for hard-type products [August] Based on the evaluation results of the products by each company and the issues identified by users, we are considering high-value-added applications that can best leverage the advantages of SNECTON. Final-stage consideration of capacity expansion is ongoing [May] Sales volume is increasing due to growing demand for low-dielectric materials [August] Sales volume continues to increase as demand for low-dielectric materials continues to grow Organic Organic Inorganic Organic 2
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3 Latest Status of Products for AI: Low Dielectric organic Filler 3 ◼ Low-dielectric organic filler: Newly developed product introduced for high-speed communication substrates • PFAS-free while maintaining low dielectric properties comparable to PTFE • The spherical particle shape enables high loading • Compared with PTFE fillers, it offers lower CTE* and lower specific gravity and higher adhesion • Compared with inorganic fillers, it offers lower Dk and lower specific gravity Intended as a replacement for resin fillers in FCCLs and for use together with inorganic fillers in rigid CCLs Base polymer (modified polyimide) PTFE resin filler Replaced with low-dielectric organic filler Assumed application (1): Flexible copper-clad laminates (FCCLs) using fluorinated hybrid polyimide Copper foil Copper foil Assumed application (2): Rigid copper-clad laminates (rigid CCLs) Key features Physical properties Organic Inorganic Product developed by Denka (organic filler) (Reference) PTFE fillers Spherical fused silica Spherical fused silica (low dielectric loss tangent grade) Particle shape Spherical Non-spherical Spherical Spherical Specific gravity (g/cm3) 1.0~1.2 2.2 2.2 2.2 CTE(ppm/℃) 70 100-140 0.5 0.5 Dielectric constant (Dk) 2.3 2.1 3.8 3.8 Dielectric dissipation factor (Df) 0.0006 0.0003 (Depending on the product) 0.0010 or less Insulating layer Insulating layer Combination of low-dielectric inorganic fillers and low-dielectric organic fillers Copper foil Copper foil Hard resinSoft resin Glass cloth New development Low dielectric organic filler *CTE: Coefficient of thermal expansion
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Production Suspension at DPE (U.S. Chloroprene Rubber Manufacturing Subsidiary): Impact on Earnings and Latest Status 4 ◼ Operating income: The impact of fundamental measures was +3.0 billion yen in 1Q and is expected to be +6.2 billion yen for the full year as planned (vs. FY2025) ◼ Extraordinary gains and losses: 1Q: -4.7 billion yen. A certain amount of extraordinary losses is expected for the full year, but we plan to offset this by recording extraordinary gains, etc. 1Q 2Q 2H Full-year Operating income Impact of fundamental measures (vs. FY2025) +3.0 +3.2 0.0 +6.2 Extraordinary gains and losses DPE-related losses -4.7 (Costs, including labor costs, associated with the removal of raw materials and other materials) Gain on sale of strategically held shares 0.0 Recognition of deferred tax assets 0.0 Compensate (¥ billions) From 2Q onward, certain costs are expected to be recorded as extraordinary losses Latest Status Equipment To safely suspend the manufacturing facilities, DPE has nearly completed the removal of materials, including raw materials and intermediates, and is currently cleaning the equipment and carrying out post-treatment work Employees DPE is working to optimize its workforce (Number of employees: approx. 140 at the end of December 2025 → approx. 80 at the end of July 2026 → further workforce optimization) Stakeholders To minimize future costs, DPE is continuing discussions with relevant stakeholders Consider Note: This slide has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated slide and the Japanese original, the original shall prevail.
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Presentation Highlights FY2026 1Q Results (P6-P14) ◼ Operating income: 11.0 billion yen (+8.7 billion yen YoY) Significant profit growth due to expanding demand for semiconductors (AI-related) and power infrastructure, the effect of the DPE production suspension (+3.0), and inventory effects* (+6.0, including temporary effects of the situation in the Middle East, etc.) * Inventory effect: +6.0 (including the effect of sales of opening inventory acquired before raw material and fuel prices rose): possibility of turning negative if raw materials and fuel prices decline (Polymer Solutions: +4.8, Elastomers & Infrastructure Solutions: +0.5, etc.) ◼ Net income: 2.8 billion yen (-2.2 billion yen YoY) Extraordinary losses: Loss on liquidation of business, etc. (DPE-related, etc.) FY2025 1Q: -2.2 (only write-downs of raw materials and intermediate products in equipment) FY2026 1Q: -4.8 (costs, including labor costs, associated with the removal of raw materials and other materials) Extraordinary gains: FY2025 1Q: +8.2 (gain on sale of land for Ofuna Plant) → FY2026 1Q: None FY2026 Forecast (P15-P18) Shareholder Returns (P19) 5 ◼ Operating income: 1H 17.0 billion yen (+5.0 billion yen vs Initial Forecast ) ◼ Net income: 1H 0.0 billion yen (±0.0 billion yen vs Initial Forecast ) [1H] Reflecting solid progress in Electronics & Innovative Products, lower sales in Life Innovation, and the remaining positive inventory effects [Full-Year] As the outlook for the situation in the Middle East and for raw material and fuel prices remains uncertain, the inventory effect may turn negative. Therefore, no revision has been made at this time, and it will be reviewed in 2Q. (Reference) Initial forecast Operating income: 30.0 billion yen Net income: 16.0 billion yen ◼ Dividend forecast: No change from 100 yen/share (Total return ratio 54%) ◼ Future dividend policy: Aim to maintain or increase dividend per share based on a total return ratio of 50% (cumulative total for the eight years of the management plan)
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FY2026 1Q Results 6
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(billion yen) FY2025 1Q Actual FY2026 1Q Actual (Year on Year) Sales 94.1 97.0 +2.9 Operating income 2.3 11.0 +8.7 Operating Margin 2.4% 11.3% +8.9% Ordinary Income 1.7 9.5 +7.8 Extraordinary gains: Gain on sale of land for Ofuna Plant 8.2 0.0 Extraordinary losses: Loss on liquidation of business, etc. (DPE-related, etc.) -2.2 -4.8 Net income 5.0 2.8 -2.2 Forex (yen/USD) Japan Naphtha (yen/KL) 65,100 113,200 145.3 159.9 FY2026 1Q Results (1) Summary (Year on Year) ◼ Operating income: Significant profit growth due to expanding demand for semiconductors (AI-related) and power infrastructure, the effect of the DPE production suspension (+3.0), and inventory effects (+6.0, including temporary effects of the situation in the Middle East, etc.) 7
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2.3 11.0 +0.2 +7.5 +6.0 +3.0 -6.4 -1.6 FY2025 1Q Actual Volume Pricing Variable Cost Inventory impact Fixed Cost DPE Production Suspension FY2026 1Q Actual Depreciation -0.6, etc. Currency fluctuations +1.6 spread maintained ◼ Significant profit growth due to expanding demand for AI-related application and power infrastructure, the effect of the DPE production suspension (+3.0), and inventory effects* (+6.0, including temporary effects of the situation in the Middle East, etc.) Operating Income Variance Analysis (Year on Year) (Plus) AI-related application and power infrastructure products Omi Plant chloroprene rubber (Minus) Rapid antigen test kits (Includes effect of currency fluctuations +3.3) (Includes effect of currency fluctuations -1.7) (¥ billions) 8 (Includes effect of currency fluctuations -0.1) Spread difference +1.1 FY2026 1Q Results (2) Operating Income Change Factors (Year on Year) * Inventory effect: +6.0 (including the effect of sales of opening inventory acquired before raw material and fuel prices rose): possibility of turning negative if raw materials and fuel prices decline (Polymer Solutions: +4.8, Elastomers & Infrastructure Solutions: +0.5, etc.) Temporary effects due to the Middle East situation
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FY2026 1Q Results (3) Change Factors by Segment (Year on Year) ◼ Profit increased in Electronics & Innovative Products, Elastomers & Infrastructure Solutions, and Polymer Solutions 9 (¥ billions) Sales FY2025 1Q Actual FY2026 1Q Actual Incr. Decr. Volume Pricing DPE Production Suspension Electronics & Innovative Products 23.6 26.4 +2.8 +0.8 +1.9 Life Innovation 6.6 7.0 +0.4 +0.5 -0.1 Elastomers & Infrastructure Solutions 25.8 23.7 -2.1 -0.2 +1.5 -3.4 Polymer Solutions 33.8 36.1 +2.3 -1.8 +4.1 Others 4.3 3.9 -0.4 -0.4 - Total 94.1 97.0 +2.9 -1.1 +7.5 -3.4 Operating income FY2025 1Q Actual FY2026 1Q Actual Incr. Decr. Volume Pricing Cost and Others DPE Production Suspension Electronics & Innovative Products 2.5 3.7 +1.2 +0.6 +1.9 -1.3 Life Innovation 0.2 0.2 -0.0 -0.6 -0.1 +0.7 Elastomers & Infrastructure Solutions -1.4 2.7 +4.1 +1.0 +1.5 -1.3 +3.0 Polymer Solutions 0.4 3.6 +3.2 -0.9 +4.1 +0.0 Others 0.6 0.7 +0.1 +0.1 - - Total 2.3 11.0 +8.7 +0.2 +7.5 -2.0 +3.0
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FY2026 1Q Results (4) Change Factors by Segment (vs. FY2025 4Q) ◼ Overall profit increased due to a significant increase in profit in Polymer Solutions 10 (¥ billions) FY2024 FY2025 FY2026 vs. 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q (Incr. Decr.) Electronics & Innovative Products 21.9 23.2 22.5 24.7 23.6 26.5 25.8 28.5 26.4 -2.1 Life Innovation 7.8 14.6 12.7 8.2 6.6 14.8 13.5 5.6 7.0 +1.4 Elastomers & Infrastructure Solutions 29.2 27.2 28.0 27.2 25.8 24.1 22.9 24.8 23.7 -1.1 Polymer Solutions 32.6 34.9 34.9 33.0 33.8 31.6 27.8 30.9 36.1 +5.2 Others 3.8 4.0 4.4 5.6 4.3 5.6 4.0 3.7 3.9 +0.2 Total 95.2 103.8 102.5 98.7 94.1 102.6 94.1 93.5 97.0 +3.5 FY2024 FY2025 FY2026 vs. 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q (Incr. Decr.) Electronics & Innovative Products 2.3 2.7 2.0 2.2 2.5 3.8 3.4 4.1 3.7 -0.5 Life Innovation 1.7 4.0 1.9 2.0 0.2 3.6 2.8 -0.4 0.2 +0.6 Elastomers & Infrastructure Solutions -0.2 -2.9 -2.6 -2.3 -1.4 -2.0 1.1 2.4 2.7 +0.4 Polymer Solutions 0.3 0.4 0.4 0.1 0.4 1.1 0.5 1.6 3.6 +2.0 Others 0.7 0.5 0.7 0.5 0.6 0.9 0.6 0.3 0.7 +0.5 Total 4.7 4.7 2.4 2.6 2.3 7.4 8.5 8.0 11.0 +3.0 Sales Operating income
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2.5 +0.6 +1.9 -1.3 3.7 FY2025 1Q Volume Pricing Cost and Others FY2026 1Q Volume By Application Cost and Others AI-Related and power infrastructure Semiconductor and Electronic Components (non- AI) Others Pricing SNECTON For resin substrate Sales for AI-related products to be in full swing from 2H - - Level year on year Spherical fused silica For resin substrate Ongoing strong sales for AI applications For optical ferrule Expansion continued For semiconductor sealants Gradual recovery in demand continued - Spherical alumina For thermal conductive molding compound Ongoing strong sales for AI applications For TIM * Gradual recovery in demand continued For xEV Sluggish sales in Europe High-performance film - Gradual recovery - Acetylene Black For power infrastructure Strong demand for high- voltage cables (Impact from Middle East situation: minor in 1Q), rapid increase for ESS - For xEV Sluggish sales in Europe ALSINK For power infrastructure Continued strong performance For electric railway Level year on year Sales composition differences Silicon nitride (powder) - - For heat dissipation substrates and bearing balls Level year on year due to replacement demand, despite sluggish EV market Level year on year Ceramic Substrates (silicon nitride substrates, aluminum nitride substrates) - For xEV Sluggish sales in Europe For electric railway Continued steady performance Progress in increasing prices as planned FY2026 1Q Results (5) Electronics & Innovative Products (Year on Year) Operating Income Variance Analysis (Year on Year) (¥ billions) Operating Income by Quarter FY2025 FY2026 1Q Non-Consolidated (vs. 4Q) ・Some shipments were moved forward in 4Q due to the situation in the Middle East Reason for Variance (Year on Year) 11 +1.2 billion yen * TIM (Thermal Interface Materials) ◼ Profit increased, driven by stronger demand for AI-related and power infrastructure applications -0.5 billion yen Rising raw material and fuel prices Increase in depreciation expenses -0.2 Price increase due to rising raw material and fuel prices 2.5 3.8 3.4 4.1 3.7 1Q 2Q 3Q 4Q 1Q
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0.2 3.6 2.8 -0.4 0.2 1Q 2Q 3Q 4Q 1Q 0.2 -0.6 -0.1 +0.7 0.2 FY2025 1Q Volume Pricing Cost and Others FY2026 1Q Volume Pricing Cost and Others Influenza Vaccines Manufacturing toward September shipments Level year on year Rapid antigen test kits Infectious diseases are not prevalent, and shipments decreased due to lower testing demand Same as above IVD reagents (inflammation markers, etc.) Includes increase due to the consolidation of Kainos Same as above FY2026 1Q Results (5) Life Innovation (Year on Year) 12 Operating Income Variance Analysis (Year on Year) (¥ billions) Reason for Variance (Year on Year) Operating Income by Quarter 1Q Non-Consolidated (vs. 4Q) ・Includes increase due to the consolidation of Kainos FY2025 -0.0 billion yen FY2026 +0.6 billion yen Decrease in research expenses, etc. *Combo kits: Test kits that detect both COVID-19 and influenza simultaneously ◼ Profit decreased significantly for rapid antigen test kits due to lower testing demand as infectious diseases are not prevalent
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Volume Pricing Cost and Others Chloroprene rubber Demand was level year on year, while shipments of products from the Omi Plant increased due to substitution for DPE products ・Foreign exchange: Plus ・Impact excluding currency fluctuation: Level year on year Special cement additives Level year on year Level year on year -1.4 -2.0 1.1 2.4 2.7 1Q 2Q 3Q 4Q 1Q -1.4 +1.0 +1.5 -1.3 +3.0 2.7 FY2025 1Q Volume Pricing Cost and Others DPE production suspension FY2026 1Q FY2026 1Q Results (5) Elastomers & Infrastructure Solutions (Year on Year) ◼ Significant increase due to the impact of DPE production suspension 13 Operating Income Variance Analysis (Year on Year) (¥ billions) Reason for Variance (Year on Year) Operating Income by Quarter 1Q Non-Consolidated (vs. 4Q) Level with 4Q FY2025 [Customs Statistics] Export unit prices (dry + latex) +4.1 billion yen 2022 2023 2024 (yen/kg) FY2026 ＋0.4billion yen Rising raw material and fuel prices 2025 2026 400 450 500 550 600 650 700 750 800 850 900 Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr
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0.4 -0.9 +4.1 +0.0 3.6 FY2025 1Q Volume Pricing Cost and Others FY2026 1Q Volume Pricing Cost and Others MS resins [LGP applications for PC monitors] Sales decrease due to competition with Chinese products (Impact from Middle East situation: Minor in 1Q) Price revision in conjunction with rising raw material and fuel pricesAS, ABS, transparent resins, etc. Volume decrease due to impact from Middle East situation Food wrapping sheets, containers Level year on year Toyokalon Volume decrease due to production consolidation (Impact from Middle East situation: Minor in 1Q) Same as above Cost reduction through production consolidation FY2026 1Q Results (5) Polymer Solutions (Year on Year) ◼ Significant profit increase due to positive effect of inventory impact +4.8 (including temporary impact from Middle East situation) 14 Operating Income Variance Analysis (Year on Year) Reason for Variance (Year on Year) Operating Income by Quarter 1Q Non-Consolidated (vs. 4Q) Significant profit increase due to inventory impact (including temporary impact from Middle East situation) FY2025 +3.2 billion yen (¥ billions) FY2026 [Negative] Rise in raw material and fuel prices [Positive] Inventory impact (temporary impact from Middle East situation, etc.) +2.0 billion yen 0.4 1.1 0.5 1.6 3.6 1Q 2Q 3Q 4Q 1Q
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FY2026 (Fiscal Year Ending March 2027) Earnings Forecast 15
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FY2026 Earnings Forecast (1) Consolidated Summary (Year on Year) 16 (billion yen) FY2025 1H Actual FY2026 1H Initial Forecast FY2026 1H Revised Forecast (vs Initial Forecast) (Reference) Full-Year Initial Forecast Sales 196.7 210.0 205.0 -5.0 450.0 Operating income 9.7 12.0 17.0 +5.0 30.0 Operating Margin 5.0% 5.7% 8.3% +2.6% 6.7% Ordinary Income 6.8 7.0 11.0 +4.0 20.0 Net income 3.9 0.0 0.0 ±0.0 16.0 Forex (yen/$) 146.2 158.0 160.4 Japan Naphtha (yen/kl) 65,000 121,100 99,300 ◼ [1H] Reflecting solid progress in Electronics & Innovative Products, lower sales in Life Innovation, and the remaining positive inventory effects ◼ [Full-Year] As the outlook for the situation in the Middle East and for raw material and fuel prices remains uncertain, the inventory effect may turn negative. Therefore, no revision has been made at this time, and it will be reviewed in 2Q
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1Q 2Q 1H Full-Year Actual Forecast (Difference) Revised Forecast Outlook Main factors for revision of earnings forecast Electronics & Innovative Products 3.7 2.3 6.0 +2.0 Demand for AI-related products, including SNECTON, spherical fused silica and spherical alumina, continues to expand (Sales of SNECTON are expected to enter full swing in 2H) The impact of reduced acetylene black production due to the situation in the Middle East is expected to become significant from 2Q onward. Meanwhile, the impact of the situation in the Middle East on other products has been less than expected Others 0.7 0.3 1.0 ±0.0 Total 11.0 6.0 17.0 +5.0 Incorporating the remaining positive effects of inventory impact The negative impact of the situation in the Middle East is less than expected (vs Initial Forecast) -2.0 +1.0 Demand for chloroprene rubber is in line with expectations Incorporating the remaining positive effects of inventory impact Demand for rapid antigen diagnostic kits associated with infectious disease outbreaks was significantly lower than initially expected (As market inventories are being consumed more slowly than expected, demand may fall below the 2H forecast) Elastomer Infrastructure Solutions Life Innovation 0.2 Operating income (¥ billions) 1.0 2.7 5.0 0.8 2.3 Polymer Solutions 3.6 4.00.4 +4.0 FY2026 Earnings Forecast (2) Breakdown by Segment 17 ◎ (Higher than projected) △ (Lower than projected) 〇 (In line with projections) ◼ [1H] Reflecting solid progress in Electronics & Innovative Products, lower sales in Life Innovation, and the remaining positive inventory effects ◼ [Full-Year] As the outlook for the situation in the Middle East and for raw material and fuel prices remains uncertain, the inventory effect may turn negative. Therefore, no revision has been made at this time, and it will be reviewed in 2Q. 〇 (In line with projections)
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FY2026 Earnings Forecast (6) Investments, Depreciation and R&D Expenses by Segment ◼ Investment in the new acetylene black production facility in Thailand is progressing, and capital expenditures are declining after peaking in the previous fiscal year (¥ billions) 18 1Q Actual Full-Year Actual 1Q Actual Full-Year Forecast (No change) 1Q Actual Full-Year Actual 1Q Actual Full-Year Forecast (No change) 1Q Actual Full-Year Actual 1Q Actual Full-Year Forecast (No change) Electronics & Innovative Products 4.4 37.9 6.5 25.0 2.7 11.2 2.9 12.0 1.5 5.8 1.7 7.0 Life Innovation 0.8 6.1 2.5 4.0 1.0 4.2 1.1 4.2 1.3 4.5 0.9 4.0 Elastomers & Infrastructure Solutions 1.8 11.1 2.9 10.0 2.1 8.3 2.1 9.0 0.6 2.5 0.7 3.0 Polymer Solutions 1.1 5.2 2.3 7.0 1.3 5.2 1.6 6.4 0.5 1.9 0.6 2.0 Others 0.0 0.4 0.3 1.0 0.1 0.3 0.1 0.4 - Total 8.2 60.8 14.4 47.0 7.2 29.2 7.8 32.0 3.9 14.8 3.9 16.0 Investment & Lending Depreciation R&D FY2025 FY2026 FY2025 FY2026 FY2025 FY2026 *1 *1 "Others" includes CVC, etc. *2 Includes decrease in DPE depreciation *2
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FY2026 Earnings Forecast (7) Shareholder Returns and ROE ◼ Unchanged from the previous year dividend of 100 yen per share in anticipation of improved cash flow (maintained from the initial forecast ) 19 FY2019 Actual FY2020 Actual FY2021 Actual FY2022 Actual FY2023 Actual FY2024 Actual FY2025 Actual FY2026 Forecast (¥ billions) 22.7 22.8 26.0 12.8 11.9 -12.3 15.7 16.0 (yen/share) 125.0 125.0 145.0 100.0 100.0 100.0 100.0 100.0 Mid-term 50.0 End 50.0 Mid-term 50.0 End (¥ billions) 10.8 10.8 12.5 8.6 8.6 8.6 8.6 8.6 48% 47% 48% 68% 72% - 55% 54% (¥ billions) - - - - - - - - (¥ billions) 10.8 10.8 12.5 8.6 8.6 8.6 8.6 8.6 48% 47% 48% 68% 72% - 55% 54% (¥ billions) 22.5 22.9 23.9 27.0 26.9 27.9 29.2 32.0 (¥ billions) 36.9 42.3 35.6 39.4 44.0 70.0 60.8 47.0 (¥ billions) 134.3 138.2 137.0 169.7 174.4 217.7 221.7 245.0 0.42x 0.42x 0.40x 0.50x 0.45x 0.61x 0.60x 0.69x 6.6% 6.8% 7.3% 6.7% 2.5% 2.5% 4.2% 4.5% 9.1% 8.8% 9.4% 4.4% 4.0% -4.1% 5.2% 5.1% 4.3% 4.2% 4.5% 2.9% 2.9% 2.9% 2.8% 2.7%DOE Investment & Lending Interest Bearing Debt Net D/E Ratio ROIC ROE Depreciation Net Income Dividends per Share Dividend Shareholders Return Stock Purchase Total Return Total return ratio*Including CVC, etc. *
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20 (Reference) 1H: Breakdown by Segment (vs Initial Forecast) (¥ billions) Sales 1H FY2026 Forecast (Initial) 1H FY2026 Forecast (Current) Incr. Decr. Volume Pricing Electronics & Innovative Products 50.0 55.0 +5.0 +4.5 +0.5 Life Innovation 20.0 17.0 -3.0 -3.1 +0.1 Elastomers & Infrastructure Solutions 50.0 50.0 ±0.0 -0.5 +0.5 Polymer Solutions 80.0 73.0 -7.0 -3.4 -3.6 Others 10.0 10.0 ±0.0 +0.0 -0.0 Total 210.0 205.0 -5.0 -2.5 -2.5 Operating income 1H FY2026 Forecast (Initial) 1H FY2026 Forecast (Current) Incr. Decr. Volume Pricing Cost and Others Electronics & Innovative Products 4.0 6.0 +2.0 +1.2 +0.5 +0.3 Life Innovation 3.0 1.0 -2.0 -3.8 +0.1 +1.7 Elastomers & Infrastructure Solutions 4.0 5.0 +1.0 -0.4 +0.5 +0.9 Polymer Solutions 0.0 4.0 +4.0 +0.1 -3.6 +7.4 Others 1.0 1.0 ±0.0 +0.0 -0.0 -0.0 Total 12.0 17.0 +5.0 -2.9 -2.5 +10.4
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21 (Reference) Full-year Forecast (By Segment) (Year on Year) (¥ billions) Sales FY2025 Actual FY2026 Forecast (No change) Incr. Decr. Volume Pricing DPE Production Suspension Electronics & Innovative Products 104.4 110.0 +5.6 -3.6 +9.1 Life Innovation 40.5 45.0 +4.5 +5.1 -0.6 Elastomers & Infrastructure Solutions 97.6 105.0 +7.4 +7.6 +6.1 -6.2 Polymer Solutions 124.2 170.0 +45.8 +11.7 +34.1 Others 17.6 20.0 +2.4 +2.4 - Total 384.2 450.0 +65.8 +23.2 +48.8 -6.2 Operating income FY2025 Actual FY2026 Forecast (No change) Incr. Decr. Volume Pricing Cost and Others DPE Production Suspension Electronics & Innovative Products 13.9 13.0 -0.9 -0.3 +9.1 -9.7 Life Innovation 6.2 6.0 -0.2 +1.8 -0.6 -1.5 Elastomers & Infrastructure Solutions 0.1 7.0 +6.9 +2.2 +6.1 -7.5 +6.2 Polymer Solutions 3.6 2.0 -1.6 -2.5 +34.1 -33.2 Others 2.4 2.0 -0.4 -0.5 - +0.0 Total 26.2 30.0 +3.8 +0.7 +48.8 -51.9 +6.2
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22 (Reference) Quarterly Trends (By Segment) (¥ billions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Actual 2Q Forecast Electronics & Innovative Products 21.9 23.2 22.5 24.7 23.6 26.5 25.8 28.5 26.4 28.6 Life Innovation 7.8 14.6 12.7 8.2 6.6 14.8 13.5 5.6 7.0 10.0 Elastomers & Infrastructure Solutions 29.2 27.2 28.0 27.2 25.8 24.1 22.9 24.8 23.7 26.3 Polymer Solutions 32.6 34.9 34.9 33.0 33.8 31.6 27.8 30.9 36.1 36.9 Others 3.8 4.0 4.4 5.6 4.3 5.6 4.0 3.7 3.9 6.1 Total 95.2 103.8 102.5 98.7 94.1 102.6 94.1 93.5 97.0 108.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Actual 2Q Forecast Electronics & Innovative Products 2.3 2.7 2.0 2.2 2.5 3.8 3.4 4.1 3.7 2.3 Life Innovation 1.7 4.0 1.9 2.0 0.2 3.6 2.8 -0.4 0.2 0.8 Elastomers & Infrastructure Solutions -0.2 -2.9 -2.6 -2.3 -1.4 -2.0 1.1 2.4 2.7 2.3 Polymer Solutions 0.3 0.4 0.4 0.1 0.4 1.1 0.5 1.6 3.6 0.4 Others 0.7 0.5 0.7 0.5 0.6 0.9 0.6 0.3 0.7 9.3 Total 4.7 4.7 2.4 2.6 2.3 7.4 8.5 8.0 11.0 6.0 Sales FY2024 FY2025 FY2026 Operating income FY2024 FY2025 FY2026
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Possibility of chemistry Copyright © Denka Co.,LTD. All Rights Reserved. 23 Target figures in this material are not forecasts of business results. In addition, any description relating to the future in this material is based on information available at the time of disclosure and on certain premises set by the Company, and they involve risks and uncertainties. Accordingly, actual results may differ from such forward- looking statements. Such risks and uncertainties include adverse economic conditions, currency exchange rate fluctuations, adverse legislative and regulatory developments, delays in new product launch, pricing, and product initiatives of competitors, the inability of the Company to market existing and new products effectively, interruptions in production, infringements of the company's intellectual property rights and the adverse outcome of material litigation. Cautionary statement regarding forward-looking information
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03-5290-5511 https://www.denka.co.jp/eng/ Inquiries regarding this material Corporate Communications Dept, Denka Co., Ltd. TEL URL