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Dexerials Corporation FY25H1 Financial Results November 12, 2025
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Contents 2 FY25H1 Financial Results Summary FY25 Earnings Forecast The forward-looking statements including earnings forecasts contained in this document are based on information currently available to us and certain assumptions that we believe are reasonable. Accordingly, we can give no assurance that such statements will prove to be correct. Actual results may differ from the results anticipated in these forward-looking statements due to a variety of factors. Disclaimer with respect to earnings and other forecasts 2
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Net sales: 114.0 billion JPY , Business profit: 39.0 billion JPY (FX rate: 145.8 JPY/US$) ➢ The forecast was revised upward, reflecting a weaker yen in the assumed FX rate for H2 and incorporating growth in high-value-added products. ➢ Cash dividends: Planned interim dividend of 29 yen per share, year-end dividend of 29 yen per share, annual total of 58 yen per share (unchanged). ➢ Share buyback and cancellation of all repurchased shares decided (5.0 billion JPY). Highlights Net sales: 57.4 billion JPY , Business profit: 20.1 billion JPY (FX rate: 146.0 JPY/US$) ➢ Sales decreased YoY . Excluding FX effects, sales remained flat. In the previous fiscal year, although there were sales of Phosphor films and an increase in initial deliveries of Anti-reflection films (ARF) for automotives at customer sites, these impacts were offset by the expansion of Optical semiconductors and Pre-cut Anisotropic conductive films (ACF) for camera modules. ➢ Business profit decreased YoY . Excluding FX effects, business profit remained flat. The same negative impacts of sales and the increase in fixed costs, mainly in Optical Semiconductors, were offset by the expansion of high- value-added products. FY25 Forecast & Shareholder Returns FY25H1 Results 3
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Financial Results Summary FY25H1（April 1, 2025 - September 30, 2025）
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FY25H1 Market and Dexerials Trends of Major Final Products (YoY) Final products Market Trend Image Trend of Dexerials Tablets • Market: Remained at the level of the previous year. • Dexerials: Negative impact on sales due to a decline in shipment volumes in certain models incorporating our products. Laptop PCs • Market: Trade-in demand remained solid. • Dexerials: Anti-reflection films (ARF) for high-end models remained solid but the sales decreased due to the impact of the sales termination of Phosphor films. Smartphones • Market: Remained at the level of the previous year. • Dexerials: Positive impact on sales due to replacement with high-value-added products for camera module- related products for high-end models. Automotives • Market: Remained at the level of the previous year. • Dexerials: Negative impact due to reactionary decline following a buildup of initial deliveries of Anti-reflection films (ARF) in the previous fiscal year. 5
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FY25H1 Financial Results Summary (Notes) Profit shall be read as profit attributable to owners of parent Earnings per share shall be read as basic earnings per share Earnings per share : The Company conducted a 3-for-1 stock split of common stock, effective October 1, 2024. The above earnings per share figures assume that the stock split was conducted at the beginning of FY24 EBITDA = Business profit + Depreciation expense recorded as costs of selling, general and administrative expenses 6 (Unit: JPY Mil) Excluding FX effects Net Sales 59,635 57,456 -3.7% -0.0% Business Profit 22,320 20,153 -9.7% -0.7% Operating Profit 23,319 19,902 -14.7% Profit before Tax 22,533 19,794 -12.2% Profit per Share 15,856 13,410 -15.4% Earnings per Share 92.27 Yen 79.65 Yen -13.7% EBITDA 25,564 23,723 -7.2% +0.6% EBITDA Margin 42.9% 41.3% -1.6%Pt +0.3%Pt 24H1 25H1 YoY Change
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FY25H1 Changes in Sales by Application (YoY) 24H1 Tablets Others 152.6 JPY/US$ 146.0 JPY/US$ Auto- motives FX (Notes) Includes estimates Laptop PCs include Desktop monitors 7 Smart- phones Laptop PCs Phosphor films 25H1 574 (Unit: JPY 100 Mil) Impacts, including those from the termination of Phosphor Films sales, were offset by Pre-cut Anisotropic conductive films (ACF) for camera modules and Optical semiconductors, etc. 596 574 ー21 ー0
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ー20 ー1 223 201 24H1 152.6 JPY/US$ 146.0 JPY/US$ 25H1 FY25H1 Business Profit Analysis (YoY) 8 255 237 24H1 25H1 ◆EBITDA 8 Price&Volume/Mix Fixed Costs, etc. FX (Unit: JPY 100 Mil) (Unit: JPY 100 Mil) (Others)(Phosphor films) The impact of the end of sales of Phosphor films and the increase in fixed costs, mainly in Optical Semiconductors, were offset by the expansion of high-value-added products. Excluding FX effects, business profit remained flat. (Note) DXPS is an abbreviation for Dexerials Photonics Solutions Corporation, a consolidated subsidiary engaged in Photonics domain Increase in: ・DXPS expenses ・Depreciation ・R&D expenses ・Human capital investment ・IT ＆ DX expenses
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Segment Summary FY25H1 Optical Materials & Components (YoY) 99 〈Main factors behind changes in sales (Excluding FX effects) 〉 ■Anti-reflection films (ARF)：Sales increased due to a steady performance of display-related products for laptop PCs ■Phosphor films：Impact of the sales termination at the end of FY24H1 ■Optical resin materials：Sales decreased due to a decline in shipment volumes for certain models using Optical elastic resins (SVR) (Note) Net sales of the Optical Materials & Components segment include inter- segment transactions 24H1 25H1 ◆Sales and Change by Category 291.9 253.5 (Unit: JPY 100 Mil) Optical films －21％ (－20％） Anti-reflection films (ARF) +2％ (+4％） Optical resin materials －5％ (－1％） <Optical elastic resins (SVR), Smart precision Adhesives, etc.> 25H1 ◆Business Profit Analysis (Unit: JPY 100 Mil) 146.0 JPY/US$ 152.6 JPY/US$ Price /Mix Volume /Mix Fixed Costs, etc. FX24H1 Phosphor films (Unit: JPY Mil) Excluding FX effects Net Sales 29,197 25,351 -13.2% -10.6% Business Profit 9,984 8,047 -19.4% -12.5% EBITDA 11,666 9,725 -16.6% -10.8% 24H1 25H1 YoY Change (Phosphor films) (Note) changes in parentheses indicate excluding FX effects. ー6 99 80
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Segment Summary FY25H1 Electronic Materials & Components (YoY) 10 (Notes) Net sales of the Electronic Materials & Components segment include inter- segment transactions BBU: Battery Backup Unit 10 〈Main factors behind changes in sales (Excluding FX effects) 〉 ■Anisotropic conductive films (ACF)：Sales increased, due to strong sales of Pre-cut Anisotropic conductive films (ACF) for camera modules. ■Surface mount fuse：Sales increased, due to a recovery in production following the completion of inventory adjustments by a major customer for products for power tools in the previous fiscal year, in addition to continued sales of BBU (battery backup units) for data centers. ■Photonics：Sales increased, due to an increase in the shipping quantity of high-speed response photodiodes for optical transceivers. 24H1 25H1 Surface mount fuse +49％ (+53％) Adhesive materials +2％ (+6％) Photonics +28％ (+33％) Anisotropic conductive films (ACF) －2％ (+3％) 307.8 325.1 ◆Sales and Change by Category (Unit: JPY 100 Mil) ◆Business Profit Analysis (Unit: JPY 100 Mil) Price /Mix Volume /Mix Fixed Costs, etc. FX (Unit: JPY Mil) Excluding FX effects Net Sales 30,785 32,510 +5.6% +10.2% Business Profit 12,335 12,105 -1.9% +8.8% EBITDA 13,897 13,997 +0.7% +10.2% 24H1 25H1 YoY Change 121123 ー13 25H1 146.0 JPY/US$ 152.6 JPY/US$ 24H1 (Note) changes in parentheses indicate excluding FX effects.
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Earnings Forecast FY25（April 1, 2025 - March 31, 2026）
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1212 FY25 Earnings Forecast (Notes) Profit shall be read as profit attributable to owners of parent Earnings per share shall be read as basic earnings per share Earnings and dividend per share: The Company conducted a 3-for-1 stock split of common stock, effective October 1, 2024. The above earnings and dividends per share figures assume that the stock split was conducted at the beginning of FY24 Total payout ratio = (Total annual dividends + Total share repurchased excluding ones for incentive purposes) / profit × 100 EBITDA = Business profit + Depreciation expense recorded as costs of selling, general and administrative expenses (Unit: JPY Mil) 152.6JPY/US$ 135.0JPY/US$ 145.8JPY/US$ Excluding FX effects Net Sales 110,390 103,500 114,000 +3.3% +6.7% Business Profit 38,068 29,000 39,000 +2.4% +11.6% Operating Profit 39,735 28,000 39,000 -1.9% Profit Before Tax 39,359 28,300 38,500 -2.2% Profit 27,737 20,500 26,000 -6.3% Earnings Per Share 162.04 Yen 120.25 Yen 153.69 Yen -5.2% Dividend Per Share 58.0 Yen 58.0 Yen 58.0 Yen 0.0% Dividend Payout Ratio 35.8% 48.2% 37.7% 10.9% 9.7% 9.7% Total Value of Share Buyback 9,999 1,000 6,000 73.2% － 58.2% EBITDA 44,708 36,900 46,700 +4.5% ROIC 22.9% 14.4% 22.1% -0.9%Pt ROE 30.6% 20.3% 25.8% -4.8%Pt Total Payout Ratio DOE FY24 FY25 Fcst YoY Change May Fcst Total payout ratio: approx. 60% (cumulative over MTMP period for 5 years） Including 1,000 million yen for Additional Contribution to Board Benefit Trust- Restricted Stock
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FY25 Earnings Forecast by Segment 1313 (Note) Net sales of the segment include inter-segment transactions FY24 FY25 Fcst (Unit: JPY Mil) 152.6JPY/US$ 135.0円/米ドル 145.8JPY/US$ YoY Change Optical Materials and Components 50,647 45,500 49,300 -2.7% Business Profit 14,556 10,000 14,700 +1.0% Margin 28.7% 22.0% 29.8% +1.1%Pt 18,006 13,900 18,500 +2.7% Electronic Materials and Components 60,434 59,000 65,600 +8.5% Business Profit 23,511 19,000 24,300 +3.4% Margin 38.9% 32.2% 37.0% -1.9%Pt 26,701 23,000 28,200 +5.6% Consolidated Total 110,390 103,500 114,000 +3.3% Business Profit 38,068 29,000 39,000 +2.4% Margin 34.5% 28.0% 34.2% -0.3%Pt 44,708 36,900 46,700 +4.5% Net Sales EBITDA Net Sales EBITDA Net Sales EBITDA May Fcst
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FY25 Changes in Sales by Application (YoY) 1414 +73 1,103 1,140 ー37 FY24 Tablets Others 152.6 JPY/US$ Auto- motives FXSmart- phones Laptop PCs Phosphor films (Unit: JPY 100 Mil) 145.8 JPY/US$ FY25 forecast (Notes) Includes estimates Laptop PCs include Desktop monitors
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FY25 Business Profit Analysis (YoY) 1515 +44 390380 ー34Increase in: ・DXPS expenses ・Depreciation ・R&D expenses ・Human capital investment ・IT ＆ DX expenses (Others)(Phosphor films) FY24 152.6 JPY/US$ Price&Volume/Mix Fixed Costs, etc. FX (Notes) DXPS is an abbreviation for Dexerials Photonics Solutions Corporation, a consolidated subsidiary of the Company engaged in the photonics domain. (Unit: JPY 100 Mil) 145.8 JPY/US$ FY25 forecast
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Shareholder Returns 27 38 40 60 103 10140 90 60 100 50 FY20 FY21 FY22 FY23 FY24 FY25 Total dividends（JPY 100 Mil） Total Value of Share Buyback（JPY 100 Mil） EPS 39.05 Yen 101.36 Yen 129.77 Yen 129.76 Yen 162.04 Yen 153.69 Yen Dividend per Share 14.7 Yen 20.0 Yen 21.7 Yen 33.3 Yen 58.0 Yen 58.0 Yen Dividend Payout Ratio 50.3% 21.8% 18.5% 25.7% 35.8% 37.7% DOE 5.2% 6.2% 5.6% 7.5% 10.9% 9.7% Total Payout Ratio 42.2% 42.3% 56.6% 53.3% 73.2% 58.2% (Notes) Profit for EPS calculation is based on profit attributable to stockholders of parent (FY20-FY22) and profit attributable to owners of parent (FY23-FY25(planned)). EPS is taken from after amortization of goodwill until FY22. EPS and annual dividends are calculated assuming the stock split was conducted at the beginning of FY20. 39.05 101.36 129.77 129.76 162.04 153.69 ◆ Mid-Term Management Plan Return Policy ◆ Share Buyback and Cancellation Decision to conduct share buyback and cancellation based on Mid-Term Management Plan return policy Total acquisition amount: Up to 5.0 billion JPY Acquisition period: From November 13 to December 23, 2025 All acquired shares are scheduled to be cancelled on January 16, 2026 JGAAP IFRS ● EPS（JPY） Total payout ratio（Cumulative total for 5 years） of approx. 60% Consolidated dividend payout ratio of approx. 40% Lower limit of DOE at 7%（With stable dividends in mind） (Planned) 16
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Appendix
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FY25Q2 Changes in Sales by Application (QoQ) 1818 Tablets OthersAuto- motives FXSmart- phones Laptop PCs (Notes) Includes estimates Laptop PCs include Desktop monitors 261 313 (Unit: JPY 100 Mil) +49 25Q1 144.6 JPY/US$ 147.5 JPY/US$ 25Q2 +2
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25Q1 25Q2 25Q1 25Q2 Change Change ー1％ +34％ +13％ +35％ +2％ +11％ +26％ Adhesive materials Anisotropic conductive films (ACF) Surface mount fuse Photonics Segment Total (including inter-segment transactions) +12％ 119.3 143.9 181.1 134.1 Optical films Optical resin materials FY25Q2 Segment Summary (QoQ) 19 ◆ Optical Materials & Components （QoQ Change by category） ◆ Electronic Materials & Components （QoQ Change by category） Segment Total (including inter-segment transactions) (Unit: JPY 100 Mil) Category Name Category Name (Unit: JPY Mil) 25Q1 25Q2 Change Net Sales 11,933 13,417 +12.4% Business Profit 3,329 4,718 +41.7% EBITDA 4,161 5,564 +33.7% (Unit: JPY Mil) 25Q1 25Q2 Change Net Sales 14,390 18,119 +25.9% Business Profit 4,570 7,534 +64.9% EBITDA 5,505 8,492 +54.3%
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20 Summary of Consolidated Financial Condition as of Sept. 30, 2025 20 (Unit: JPY Mil) As of Mar 2025 As of Sept 2025 Amt Change Cash and Cash Equivalents 34,979 22,377 -12,602 Current Assets 63,559 57,055 -6,503 PP&E 49,703 64,077 +14,373 Non-current Assets 88,262 101,727 +13,465 Total Assets 151,821 158,783 +6,962 Interest-bearing Debt 21,078 19,257 -1,821 Total Debt 55,905 55,560 -344 Total Equity 95,915 103,222 +7,307 Total Liabilities and Equity 151,821 158,783 +6,962 13,901 3,120 -10,781 63.2% 65.0% +1.8%pt Net D/E Ratio -0.14 -0.03 +0.11 Net Cash Ratio of Equity Attributable to Owners of Parent to Total Assets
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21 FY25H1 Summary of Consolidated Cash Flows 21 (Unit: JPY Mil) 24H1 25H1 Amt Change 19,711 10,853 -8,857 -5,133 -15,345 -10,212 14,577 -4,492 -19,070 -5,372 -8,259 -2,887 42,307 22,377 -19,929Cash Balance Operating Cash Flow Investing Cash Flow Free Cash Flow Financing Cash Flow
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FY25H1 Net Sales by Region 22 (Unit: JPY Mil) Composition Composition 26.6% 15,855 52.7% 30,255 +14,399 27.5% 16,425 23.3% 13,396 -3,028 14.3% 8,528 6.3% 3,646 -4,881 18.6% 11,063 10.6% 6,082 -4,981 13.0% 7,761 7.1% 4,075 -3,686 73.4% 43,779 47.3% 27,200 -16,578 100.0% 59,635 100.0% 57,456 -2,178Net Sales China South Korea Japan Outside Japan Taiwan Others 25H124H1 Amt Change (Note) Sales in Japan include sales to customers based in Japan, even when the final destination of the products is overseas
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23 Treasury Shares Held as of September 30, 2025 23 Percentage of the number of shares issued Number of shares Number of issued shares 100.0% 176,418,500 Common stock (excluding treasury shares) 95.9% 169,180,141 Treasury shares 4.1% 7,238,359 0.0% 0 4.1% 7,237,156 Employee Stock Ownership Plan (J-ESOP) 3.4% 5,976,800 Board Benefit Trust-Restricted Stock (BBT-RS) 0.2% 407,264 With restrictions on transfer 0.5% 853,092 Others 0.0% 1,203 Items Number of treasury shares held except for incentives Number of treasury shares held for incentives
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24 Quarterly Data 24 (Notes) Profit shall be read as net profit attributable to owners of parent (FY21, FY22) and profit attributable to owners of parent (FY23, FY24, FY25 forecast) Operating profit and its margin are shown instead of business profit and its margin for FY21 and FY22, which are based on Japanese GAAP Capex in IFRS excludes fixed assets under lease contracts FY25 forecast for total value of share buyback includes additional contribution to Board Benefit Trust-Restricted Stock Total payout ratio calculation does not include the number of shares to repurchase for incentives (Unit: JPY Mil) Q1 Q2 Q3 Q4 Q1 Q2 Net Sales 95,712 106,167 105,198 27,176 32,458 27,528 23,226 110,390 26,140 31,315 114,000 Business Profit 26,642 32,288 34,086 9,595 12,724 9,545 6,202 38,068 7,899 12,253 39,000 Margin 27.8% 30.4% 32.4% 35.3% 39.2% 34.7% 26.7% 34.5% 30.2% 39.1% 34.2% Profit 16,669 20,685 22,575 6,689 9,167 7,499 4,381 27,737 5,565 7,845 26,000 91.54 Yen 129.77 Yen 129.76 Yen ー ー ー ー 162.04 Yen ー ー 152.51 Yen 20.0 Yen 21.7 Yen 33.3 Yen ー ー ー ー 58.0 Yen ー ー 58.0 Yen 3,999 8,999 5,999 ー ー ー ー 9,999 ー ー 6,000 42.3% 56.6% 53.3% ー ー ー ー 73.2% ー ー 58.2% EBITDA 32,478 39,101 39,386 11,204 14,360 11,231 7,912 44,708 9,667 14,056 46,700 ROIC 22.5% 24.4% 22.9% ー ー ー ー 22.9% ー ー 22.1% ROE 28.5% 30.3% 29.5% ー ー ー ー 30.6% ー ー 25.8% 5,250 13,926 7,482 1,321 2,261 1,024 3,379 9,190 2,427 2,335 16,600 4,207 4,615 5,300 1,608 1,635 1,685 1,710 6,640 1,767 1,802 7,700 3,876 4,274 4,706 1,208 1,317 1,250 1,553 5,330 1,467 1,679 7,000 112.4 135.5 144.6 155.9 149.4 152.4 152.6 152.6 144.6 147.5 145.8FX Rate (JPY/US$) Management Indices Earnings per Share Dividend per Share Total Value of Share Buyback Capex Depreciation Total Payout Ratio R&D Expenses FY23 IFRSJGAAP FY21 FY22 FY24 FY25 Fcst A downward revision was made due to the postponement of the building handover schedule. Including advance payments, the total is 37.6 billion JPY, and progress is on track as planned.
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25 Quarterly Data by Segment 25 (Notes) Net sales of the segment include inter-segment transactions Operating profit and its margin are shown instead of business profit and its margin for FY21 and FY22 (Unit: JPY Mil) Q1 Q2 Q3 Q4 Q1 Q2 Optical Materials and Components Net Sales 49,159 55,384 51,453 12,573 16,624 12,499 8,951 50,647 11,933 13,417 49,300 Business Profit 13,127 17,969 15,256 3,641 6,342 3,652 919 14,556 3,329 4,718 14,700 Margin 26.7% 32.4% 29.7% 29.0% 38.2% 29.2% 10.3% 28.7% 27.9% 35.2% 29.8% EBITDA 15,428 20,142 17,584 4,490 7,176 4,527 1,812 18,006 4,161 5,564 18,500 Electronic Materials and Components Net Sales 47,195 51,495 54,387 14,765 16,019 15,214 14,434 60,434 14,390 18,119 65,600 Business Profit 15,304 16,106 18,830 5,953 6,381 5,893 5,282 23,511 4,570 7,534 24,300 Margin 32.4% 31.3% 34.6% 40.3% 39.8% 38.7% 36.6% 38.9% 31.8% 41.6% 37.0% EBITDA 17,049 18,958 21,802 6,715 7,183 6,703 6,099 26,701 5,505 8,492 28,200 Consolidated Total Net Sales 95,712 106,167 105,198 27,176 32,458 27,528 23,226 110,390 26,140 31,315 114,000 Business Profit 26,642 32,288 34,086 9,595 12,724 9,545 6,202 38,068 7,899 12,253 39,000 Margin 27.8% 30.4% 32.4% 35.3% 39.2% 34.7% 26.7% 34.5% 30.2% 39.1% 34.2% EBITDA 32,478 39,101 39,386 11,204 14,360 11,231 7,912 44,708 9,667 14,057 46,700 FY25 FcstFY24FY23FY21 FY22 JGAAP IFRS
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26 ESG External Rating & Others 26 SOMPO Sustainability Index June 2025 Selected consecutively as a constituent 2025 Health & Productivity Management Outstanding Organization (Large Enterprise Category) March 2025 Selected as a constituent for five consecutive years JPX-Nikkei index 400 October 2025 Selected as a constituent for four consecutive years The index is calculated jointly by the Tokyo Stock Exchange, Inc. and Nikkei Inc. Active index uniquely set by Sompo Asset Management Co.,Ltd. FTSE Blossom Japan Sector Relative Index* June 2025 Selected consecutively as a constituent An ESG investment index provided by UK-based FTSE Russell targeting Japanese companies that meet global standards 「MSCI** Japan ESG Select Leaders Index」 「MSCI** Japan Empowering Women Index (WIN)」 June 2025 Selected consecutively as a constituent IR Website Surveys January 2025 Achieves High Ratings in Three Major IR Website Surveys June 2025 Selected consecutively as a constituent *FTSE Russell confirms that Dexerials Corporation has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is used by a wide variety of market participants to create and assess responsible investment funds and other products JPX Prime 150 Index August 2025 Selected as a constituent for two consecutive years Stock price index that is positioned as “Japanese companies that are estimated to create value” GPIF Excellent Integrated Report March 2025 "Dexerials Integrated Report 2024" selected for the first time as an "Excellent Integrated Report" by GPIF's Asset Managers Entrusted with Domestic Equity Investment (78 companies of approx. 1,200 companies) **The inclusion of Dexerials in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of Dexerials by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates
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Our Purpose & Sustainability 2727 Connecting people and technology. Connecting community and hope. We craft the materials, devices, and solutions that advance digital technology, and we will continue to embark on a journey to change the world. Together with our partners, we at Dexerials envision the future and solve every issue with innovation. Masterfully leveraging the combination of people and technology, we open new paths to evolution. Every day, we embrace the challenge of creating a society that’s more prosperous and efficient. Our aim is to strive for a world where all stakeholders can enjoy sustainable and comfortable lives. Strengthening Technology and Human Capital Purpose Materiality What we want to be in ten years ◼ Contributing to the evolution of digital technologies in a wider range of domains ◼ Achieving sustainable growth by creating social value and economic value Empower Evolution. Connect People and Technology.
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Sales Composition 2828 ■Sales by Category（FY24） Smart- phones Laptop PCsTablets Auto- motives Others Power tools, E-Scooters, Projectors, Data Centers, FA, etc. Electronic Materials and Components Segment Optical Materials and Components Segment Optical elastic resins (SVR) Surface mount fuse 55％ 45％ Adhesive materials Anti-reflection films (ARF) Smart precision Adhesives Micro devices Phosphor films Sales for FY24 1,103 JPY100mil Optical semiconductors Adhesives and othersAnisotropic conductive films (ACF) ■ Sales by Application（FY24） ▼グラフ元データ
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Final Products Incorporating Dexerials' Products Anti-reflection films (ARF) Optical elastic resins (SVR) Smart precision Adhesives 2929 Anti-reflection films (ARF) Cover lens Optical elastic resins (SVR) FPD module Cover lens Camera module Optical pickup These are optical films designed to prevent the deterioration of visibility by suppressing the reflection of light on the surfaces of optical devices such as laptop PCs displays This is a UV-curable elastic resin that fills the air gap inside the displays of smartphones, tablets, and laptop PCs, suppressing light refraction and reflection Adhesives cured with UV, heat, and UV heat accomplish low-temperature fast curing and low shrinkage and are ideal for precision affixing during assembly
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Final Products Incorporating Dexerials' Products Surface mount fuse Anisotropic conductive films (ACF) This is a de facto standard adhesive material used for almost all the flat panel displays. This is a conductive adhesive film with conductive particles dispersed in thermo-curable resin. It conductively connects driver ICs or sensor modules to circuit boards These are secondary protection fuses for the safe operation of electronic devices equipped with lithium-ion batteries. In the event of overcurrent, overcharging of lithium-ion batteries, the fuse element melts. This improves the safety of the batteries Large -sized FPD Printed circuit board Small -to- Medium sized FPD Camera module Flexible circuit board ● Anisotropic conductive films (ACF) 30
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Optical elastic resins (SVR) Final Products Incorporating Dexerials' Products 31 With the sophistication of advanced driver-assistance systems (ADAS), more and more automotive sensors are being mounted on vehicles. Dexerials’ Smart precision Adhesives are finding increasing application for sensor modules Boasting high anti-reflection and stain-resistant performance, Dexerials’ Anti-reflection films (ARF) are increasingly being adopted amid the trend towards electronic displays and larger, higher- resolution screens. In addition, sales of Optical elastic resins (SVR), Anisotropic conductive films (ACF) and others increased for automotive display applications Sensors for AutomotivesAutomotive display Anti-reflection films (ARF) Smart precision Adhesives Anisotropic conductive films (ACF)
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Final Products Incorporating Dexerials' Products 3232 Semiconductor elements that convert electricity into light and vice versa are generically referred to as optical semiconductors. Electronic parts incorporating these elements are optical semiconductor devices. Dexerials' products are adopted in optical transceivers for data centers Optical semiconductor elements and modules Datacenters Optical transceivers @Yole Opticaltransceivers２０２３ High-speed Photodiode 【Implementation Overview Diagram】
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High Market Share in the Niche Markets Mainstay products with Global No.1 share in the niche markets. Functional materials with top global market share are the source of stable growth. ※1: The 2024 share for value amount of Anisotropic conductive films (ACF) for large -sized and small-to medium-sized displays according to the “Reality and Future Prospect of Display Related Market 2025” issued by Fuji Chimera Research Institute, inc. ※2: The 2024 share for value amount of surface treatment film(dry coating) according to the “Reality and Future Prospect of D isplay Related Market 2025” issued by Fuji Chimera Research Institute, inc. ※3: The 2024 share for value amount of optically clear adhesives (OCR/LOCA) according to the “Reality and Future Prospect of Display Related Market 2025” issued by Fuji Chimera Research Institute, inc. Optical elastic resins (SVR) is the product name fo r Dexerials’ optically clear adhesives 3333 Anisotropic conductive films (ACF) Anti-reflection films (ARF) Optical elastic resins (SVR) Sales of 3 mainstay products Overseas sales ratio（FY24） Approx.66.6％ FY24 Approx. 65.2％ of total net sales Anisotropic conductive films (ACF)*1 Anti-reflection films (ARF) produced utilizing sputtering technology*2 Optical elastic resins (SVR)*3 74.0％ 92.8％ 54.7％
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34 Dexerials’ Business Model – Creating Single-Sourced Products 34 Designate materials Design-in Plan and propose optimal solutions Spec-in Support for mass production, product customization, and improvement Consumers Chemical/material suppliers Highly-Functional Materials Manufacturers Dexerials Advanced analytical and technological capabilities developed Direct customers Display manufacturers, assembly manufacturers, electrical component manufacturers Final customers IT product manufacturers, automotive manufacturers Our U n ique A pproach: Design - In Directly approaching the final customers close to the market, develop and propose optimal solutions based on customer insights into future technology trends Expansion of S ingle - S ource d P roducts Creating new markets, and maintaining strong pricing power by building high barriers to entry through technological capabilities and patent acquisitions Designated as S ingle - S ource d P roduct s Maintain high market share s in the niche markets and high profitability
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35 Dexerials’ Business Model – Applying to New Domains for Sustainable Growth 35 Designate materials Design-in Plan and propose optimal solutions Spec-in Support for mass production, product customization, and improvement Consumers Chemical/material suppliers Highly-Functional Materials Manufacturers Dexerials Advanced analytical and technological capabilities developed Direct customers Display manufacturers, assembly manufacturers, electrical component manufacturers Final customers IT product manufacturers, automotive manufacturers Solution Created by the Business Model • Essential to evolution of technology for enhancing efficiency of society • Creating both economic & social value, which are cores of our sustainable growth Applying to New Domains to Realize Sustainable Growth • Automotives and Photonics are the domains where a technological evolution is needed for enhancing efficiency of society
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131 85 116 97 108 176 325 391 394 447 467 640 Share Price and EBITDA 36 Mid-Term Management Plan 2023 “Challenges for Evolution” Mid-term Management Plan 2018 “Change for Growth” Share price return during the previous mid-term management plan period 2019 Yoshihisa Shinya, appointed as president Mid-Term Management Plan 2028 “Achieving Evolution” 36 End of March 2019 JPY 245 (After the stock split) Share Price (JPY) EBITDA (JPY 100M) FY15 Act FY16 Act FY17 Act FY18 Act FY20 Act FY21 Act FY22 Act FY19 Act FY23 Act FY24 Act FY28 Plan Total Shareholder Return (including dividends) +852% Sept. 30, 2025 JPY 2,276 Mkt Cap JPY 401.6 Bil FY25 Fcst
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400 395 480 640 FY23 FY24 列3 FY26 列4 FY28 37 Mid-term Management Plan 2028 ”Achieving Evolution” 37 Positioning Achieve sustainable growth and enhancement of corporate value by balancing growth investments and shareholder returns ＊EPS before goodwill amortization ROE 27.1% 25.5% Approximately 25% throughout the period of the mid-term management plan “Achieving Evolution” FY23 Actual FY24 Forecast FY26 Plan FY28 Plan JGAAP IFRS IFRS IFRS 144.6 JPY/USD 140.0 JPY/USD 135.0 JPY/USD 135.0 JPY/USD Net sales (100 million yen) EPS (yen, After the stock split) EBITDA (100 million yen) 1,052 1,070 1,200 1,500 408 397 443 626 ＊
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Domain Growth in Mid-Term Management Plan 2028 “Achieving Evolution” FY23（Actual） FY28（Plan） 100M yen1,052 Net Sales 80% 20% Existing domains Growth domains 100M yen1,500 Net Sales 70% 30% 140 30070 150 FY23 (Actual) FY28 (Plan) Photonics Automotives （Unit: 100 million yen） 450 210 Scale of the businesses in growth domains (net sales) FY23 (Actual) FY28 (Plan) （Unit: 100 million yen） 1,050 850 Scale of businesses in existing domains (net sales) Others Optical resin materials Anti-reflection films (ARF) Surface mount fuse Anisotropic conductive films（ACF） 38 CAGR16.5% CAGR16.5% Four major Categories CAGR 8.6% : Electronics, etc. : Automotives, Photonics
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39 Capital Allocation in Mid-term Management Plan 2028 After investment of non- financial capital 1,700 Operating C/F 2,150 Debt finance 900 Non-financial investment 450 Investment to achieve the current Mid-Term Management Plan 1,300 Investment for sustainable growth 500 Shareholder returns 800 Cumulative total for the five-year period of the Mid-Term Management Plan Cash-In Cash-Out Balance between growth investments and shareholder returns based on optimal capital structure （Unit: 100 million yen） Shareholder returns Financial strategy Investment for sustainable growth Investment to achieve the current Mid-Term Management Plan Non-financial investment ◼ Invest in people and technologies, which is our materiality. ◼ Plan to invest approx. 3 times more than during the previous Mid-term Management Plan. ◼ ROIC target: Around 14% ◼ Secure an additional investment budget for cases where the probability has increased. ◼ If there are no investment opportunities, consider increasing shareholder return. ◼ Provide return targeting a total payout ratio of approx. 60% (cumulative total over five years). ◼ A policy of aiming for a dividend payout ratio of 40% with a lower limit of 7% for DOE ◼ Target net D/E of 0.45x and capital to asset ratio of 50% (FY28)
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Advanced Corporate Governance System 4040 Katsushi Kitajo Representative Director Yoshihisa Shinya Representative Director and President Kazuo Hosoya Director Satoshi Taguchi Director Internal directors: 3 Outside directors: 5 Board of Directors Yoshiko Nakayama Director Audit and Supervisory Committee Member Masato Taniguchi Director Standing Audit and Supervisory Committee Member Tetsuyuki Kagaya Director Chairperson of the Audit and Supervisory Committee Audit & Supervisory Committee ✓ In 2021: • Transition to a company with an Audit & Supervisory Committee • Adopted TSR in the evaluation criteria of directors’ remuneration ✓ In 2019: • Established a Nomination and Remuneration Committee Toshihiro Hagiwara Director ✓ In 2024: • Application of restricted stock to stock compensation plan • Enhanced composition of remuneration for Representative Directors Before: 50% Before: 20%
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41 History 2002 Anti-reflection films (ARF) 1977 Anisotropic conductive films (ACF) 2007 Optical elastic resins (SVR) 1962 Founded as Sony Chemical 1987 Listed on the Second Section of the Tokyo Stock Exchange (TSE). 2000 Sony Chemicals Corporation was delisted from TSE. Became a wholly- owned subsidiary of Sony Corporation. 2012 Development Bank of Japan, among others, acquired the Company’s shares and launched business as Dexerials. 2015 Listed on the First Section of the Tokyo Stock Exchange (TSE). 2022 Acquired Kyoto Semiconductor and made it a subsidiary. Transit to the Prime Market of the Tokyo Stock Exchange (TSE). 2024 Dexerials Photonics Solutions Corporation commenced operation. 2022 Optical semiconductor elements and modules Became independent from Sony in 2012. Listed in 2015. ※1: The 2024 share for value amount of Anisotropic conductive films (ACF) for large -sized and small-to medium-sized displays according to the “Reality and Future Prospect of Display Related Market 2025” issued by Fuji Chimera Research Institute, inc. ※2: The 2024 share for value amount of surface treatment film(dry coating) according to the “Reality and Future Prospect of D isplay Related Market 2025” issued by Fuji Chimera Research Institute, inc. ※3: The 2024 share for value amount of optically clear adhesives (OCR/LOCA) according to the “Reality and Future Prospect of Display Related Market 2025” issued Fuji Chimera Research Institute, inc. Optical elastic resins (SVR) is the product name for Dexerials’ optically clear adhesives