Denka Co., Ltd. · TSE:4061
Denka — Q1 FY2025 Earnings Presentation
22 slides from Denka's earnings presentation, Aug 7, 2025
Slide 1: Results Presentation of FY2025 1Q
Results Presentation of FY2025 1Q (The 1st 3 Months of the Fiscal year ending March 2026) Note: This slide deck has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between Securities code: 4061 this translated slide and the Japanese original, t
Slide 2: Production Suspension at DPE: Latest Status After Production Suspension
Production Suspension at DPE (U.S. Chloroprene Rubber Manufacturing Subsidiary) 1) Latest Status After Production Suspension ◼ Working to and fully bringing down manufacturing facilities and equipment into a safe status ◼ Discussions with each stakeholder are ongoing * DPE: Denka Performance Elastom
Slide 3: Production Suspension at DPE: Impact on FY2025 Earnings
Production Suspension at DPE (U.S. Chloroprene Rubber Manufacturing Subsidiary) 2) Impact on FY2025 Earnings ◼ Operating income: Fundamental measures had a +0.9 billion yen impact in 1Q; expecting a +9.0 billion yen impact for the full year (vs. FY2024) ◼ Extraordinary losses: 1Q includes -2.1 billi
Slide 4: Presentation Highlights
Presentation Highlights ◼ Operating income: 2.3 billion yen -2.4 billion yen YoY FY2025 1Q Changes in inventory write-downs on chloroprene rubber: -2.1 (reversal in 1Q FY2024 of +2.1 → resolved in 1Q FY2025 0.0), etc. Results ◼ Net income: 5.0 billion yen +2.8 billion yen YoY (P5-P13) DPE-related lo
Slide 5: FY2025 1Q Results
Denka Possibility of chemistry FY2025 1Q Results
Slide 6: FY2025 1Q Results Summary
FY2025 1Q Results 1) Summary (Year on Year) ◼ Operating income declined due to changes in inventory write-downs on chloroprene rubber; however, net income increased from the gain on sale of land for Ofuna Plant (¥ billions) FY2024 FY2025 1Q Actual 1Q Actual (Year on Year) Sales 95.2 94.1 -1.2 Operat
Slide 7: Operating Income Change Factors (Year on Year)
FY2025 1Q Results 2) Operating Income Change Factors (Year on Year) ◼ Despite stronger demand for AI-related products and a gradual recovery of other products in Electronics & Innovative Products, profit declined due to lower sales of rapid antigen test kits and IVD reagents, along with changes in i
Slide 8: Change Factors by Segment
FY2025 1Q Results 3) Change Factors by Segment By Segment (Year on Year) ◼ Decline in profit for Life Innovation and Elastomers & Infrastructure Solutions (¥ billions) FY2024 FY2025 DPE Sales 1Q Actual 1Q Actual Incr. production Decr. Volume Pricing suspension Electronics & Innovative Products 21.9
Slide 9: Change Factors by Segment (vs. FY2024 4Q)
FY2025 1Q Results 4) Change Factors by Segment (vs. FY2024 4Q) ◼ QoQ decline in profit due to lower profits in Life Innovation, despite moderate demand recovery in Electronic & Innovative Products and Polymer Solutions and positive impact from DPE’s production suspension in Elastomer & Infrastructur
Slide 10: Electronics & Innovative Products
FY2025 1Q Results 5) Electronics & Innovative Products (Year on Year) ◼ Profit increased, driven by rising demand in growth markets, including AI and high-voltage transmission, along with a gradual recovery in non-AI semiconductor demand Operating Income Variance (¥ billions) Reason for Variance ※ T
Slide 11: Life Innovation
FY2025 1Q Results 5) Life Innovation (Year on Year) ◼ Profit decreased for rapid antigen test kits due to lower shipments of combo kits caused by changing trends in infectious diseases Shipment of IVD reagents decreased due to weak demand in some overseas markets Operating Income Variance (¥ billion
Slide 12: Elastomers & Infrastructure Solutions
FY2025 1Q Results 5) Elastomers & Infrastructure Solutions (Year on Year) ◼ Lower profit for chloroprene rubber due to changes in inventory valuation write-downs; cement production ended in June Operating Income Variance (¥ billions) Reason for Variance Analysis (Year on Year) (Year on Year) Volume
Slide 13: Polymer Solutions
FY2025 1Q Results 5) Polymer Solutions (Year on Year) ◼ Level year on year Operating Income Variance (¥ billions) Reason for Variance Analysis (Year on Year) (Year on Year) +0.2 0.4 0.3 Volume Pricing Cost and Others +3.3 +0.1 billion yen (LGP applications for PC monitors) MS resins Level year on ye
Slide 14: FY2025 Earnings Forecast
FY2025 (Fiscal Year Ending March 2026) Earnings Forecast 14
Slide 15: Earnings Forecast: Progress vs. Forecast
FY2025 Earnings Forecast 1) Progress Vs. Forecast ◼ Overall progress was in line with projections ◼ Operating income: V-shaped recovery including the +9.0 billion yen impact of fundamental measures related to the chloroprene rubber business ◼ Net income: We expect to post extraordinary losses as we
Slide 16: Investments, Depreciation and R&D Expenses by Segment
FY2025 Earnings Forecast 2) Investments, Depreciation and R&D Expenses by Segment ◼ Initial forecast unchanged (¥ billions) Investment & Lending Depreciation R&D FY2024 FY2025 FY2024 FY2025 FY2024 FY2025 1Q FY2024 1Q FY2025 1Q FY2024 1Q FY2025 1Q FY2024 1Q FY2025 Actual Actual Actual Forecast Actual
Slide 17: Shareholder Returns and ROE
FY2025 Earnings Forecast 3) Shareholder Returns and ROE ◼ Unchanged from the previous year dividend of 100 yen per share in anticipation of improved cash flow FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Actual Actual Actual Actual Actual Actual Actual Forecast Net Income (¥ billions) 25.
Slide 18: (Reference) 1st Half Breakdown (By Segment)
(Reference) 1st Half Breakdown (By Segment) (Year on Year) (¥ billions) FY2024 FY2025 Sales 1H Actual 1H Forecast DPE (No change) Incr. production Decr. Volume Pricing suspension Electronics & Innovative Products 45.1 50.0 +4.9 +5.8 -0.9 Life Innovation 22.4 20.0 -2.4 -1.7 -0.7 Elastomers & Infrastr
Slide 19: (Reference) Full-year Forecast (By Segment)
(Reference) Full-year Forecast (By Segment) (Year on Year) FY2025 DPE (¥ billions) FY2024 Sales Actual Forecast Incr. production (No change) Decr. Volume Pricing suspension Electronics & Innovative Products 92.2 105.0 +12.8 +12.9 -0.1 Life Innovation 43.3 45.0 +1.7 +3.5 -1.8 Elastomers & Infrastruct
Slide 20: (Reference) Quarterly Trends (By Segment)
(Reference) Quarterly Trends (By Segment) FY2023 FY2024 FY2025 Sales 1Q 2Q 2H (¥billions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Actual Forecast Forecast Electronics & Innovative Products 19.2 22.5 21.7 24.5 21.9 23.2 22.5 24.7 23.6 26.4 55.0 Life Innovation 7.2 15.0 15.8 9.0 7.8 14.6 12.7 8.2 6.6 13.4 25.0 Elasto
Slide 21: Cautionary statement regarding forward-looking information
Cautionary statement regarding forward-looking information Target figures in this material are not forecasts of business results. In addition, any description relating to the future in this material is subject to known or unknown risks and uncertainties, although it is based on management's current
Slide 22: Inquiries regarding this material
Inquiries regarding this material Corporate Communications Dept, Denka Co., Ltd. TEL 03-5290-5511 URL https://www.denka.co.jp/eng/