Denka Co., Ltd. · TSE:4061
Denka — FY2026 2Q Earnings Presentation
34 slides from Denka's earnings presentation, Nov 9, 2026
Slide 1: Results Presentation, FY2026 2Q
Results Presentation, FY2026 2Q (The First Half of the Fiscal Year Ending March 2027) 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, the o
Slide 2: Latest Status of Products for AI: SNECTON
Latest Status of Products for AI: SNECTON ◼ Soft-type SNECTON: Considering production capacity reinforcement in response to a higher-than-expected increase in demand SNECTON net sales target FY2028 *SNECTON: (¥ billions) 20.0 billion yen Expand A low dielectric organic insulation resin. The only mat
Slide 3: Status of Segment Breakdown Review for Mission 2030 Phase 2
Status of Segment Breakdown Review for Mission 2030 Phase 2 ◼ Despite the possibility of a downward revision for Life Innovation, the FY2028 plan remains unchanged (operating income: 45.0 billion yen, ROE: 8.0%), supported by a substantial increase in profit in Electronics & Innovative Products driv
Slide 4: Efforts to Spin-off Styrene-related Businesses within Polymer Solutions
Efforts to Spin-off Styrene-related Businesses within Polymer Solutions ◼ In April 2027, Denka will establish a new company, Node Chemical Company Limited, to undertake sales operations for the styrene- related businesses of the Polymer Solutions Division. The manufacturing and sales operations are
Slide 5: Production Suspension at DPE: Impact on Earnings and Latest Status
Production Suspension at DPE (U.S. Chloroprene Rubber Manufacturing Subsidiary): Impact on Earnings and Latest Status ◼ Operating income: The impact of fundamental measures was +6.2 billion yen in 1H as planned (vs. FY2025) ◼ Extraordinary gains (losses) : -9.1 billion yen in 1H. A certain amount of
Slide 6: Presentation Highlights
Presentation Highlights ◼ Operating income: 24.7 billion yen (+15.0 billion yen YoY) Significant profit growth due to expanding demand for AI-related products and products for power infrastructure, the impact of the DPE production suspension +6.2, and the inventory effect +8.1 (Polymer Solutions +5.
Slide 7: FY2026 2Q Results
FY2026 2Q Results (The First Half of the Fiscal Year Ending March 2027) 7
Slide 8: 2Q Results (1) Summary (Year on Year)
FY2026 2Q Results (1) Summary (Year on Year) ◼ Operating income: Significant profit growth (YonY, vs. August forecast) FY2026 FY2025 FY2026 August 1H Actual 1H Actual Forecast (billion yen) (YonY) (vs. August Forecast) Sales 196.7 208.7 +12.0 205.0 +3.7 Operating income 9.7 24.7 +15.0 17.0 +7.7 Oper
Slide 9: 2Q Results (2) Operating Income Change Factors (Year on Year)
FY2026 2Q Results (2) Operating Income Change Factors (Year on Year) ◼ Despite decreased sales of rapid antigen test kits and styrene-based resins, profit increased significantly due to expanding demand for AI- related products and products for power infrastructure, the impact of the DPE production
Slide 10: 2Q Results (3) Change Factors by Segment (Year on Year)
FY2026 2Q Results (3) Change Factors by Segment (Year on Year) ◼ Profit increased in Electronics & Innovative Products, Elastomers & Infrastructure Solutions and Polymer Solutions FY2025 FY2026 DPE Sales 1H Actual 1H Actual Incr. Decr. Production (¥ billions) Volume Pricing Suspension Electronics &
Slide 11: 2Q Results (4) Operating Income Change Factors by Segment (vs. FY2026 1Q)
FY2026 2Q Results (4) Operating Income Change Factors by Segment (vs. FY2026 1Q) ◼ Profit increased in Electronics & Innovative Products and Life Innovation (¥ billions) FY2024 FY2025 FY2026 vs. 1Q Sales (Incr. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Decr.) Electronics & Innovative Products 21.9 23.2 22.5 24.
Slide 12: 2Q Results (5) Electronics & Innovative Products (Year on Year)
FY2026 2Q Results (5) Electronics & Innovative Products (Year on Year) ◼ Increased demand for AI-related and power infrastructure applications led to favorable volume variances and sales price composition Reason for Variance By Application Cost and Others Operating Income Variance Analysis (Year on
Slide 13: 2Q Results (5) Life Innovation (Year on Year)
FY2026 2Q Results (5) Life Innovation (Year on Year) ◼ Rapid antigen test kits: Shipment volume decreased significantly due to prolonged adjustment of market inventories for shipments in the previous period Operating Income Variance Analysis Reason for Variance (Year on Year) (Year on Year) (¥ billi
Slide 14: 2Q Results (5) Elastomers & Infrastructure Solutions (Year on Year)
FY2026 2Q Results (5) Elastomers & Infrastructure Solutions (Year on Year) ◼ Significant increase in profit driven by higher sales of Omi chloroprene rubber and the impact of DPE production suspension Operating Income Variance Analysis Reason for Variance (Year on Year) (¥ billions) (Year on Year) 5
Slide 15: 2Q Results (5) Polymer Solutions (Year on Year)
FY2026 2Q Results (5) Polymer Solutions (Year on Year) ◼ Despite lower sales of styrene-based resins, profit increased significantly as the positive inventory effect of +5.1 billion yen continued to contribute Operating Income Variance Analysis Reason for Variance (Year on Year) (Year on Year) (¥ bi
Slide 16: 2Q Results (6) Breakdown by Segment (vs. August Forecast)
FY2026 2Q Results (6) Breakdown by Segment (vs. August Forecast) ◼ Upward performance driven by increased demand for AI-related and power infrastructure applications, as well as positive inventory effect FY2026 FY2026 DPE (¥ billions) 1H Incr. Sales August 1H Decr. Volume Pricing Production Suspensi
Slide 17: FY2026 Earnings Forecast (Fiscal Year Ending March 2027)
FY2026 Earnings Forecast (Fiscal Year Ending March 2027) 17
Slide 18: (1) Consolidated Summary (Year on Year)
FY2026 Earnings Forecast (1) Consolidated Summary (Year on Year) ◼ Upward revision from initial forecast FY2026 FY2025 FY2025 FY2025 FY2026 FY2026 Forecast (Year on (vs. Initial (billion yen) 1H Actual 2H Actual Actual 1H Actual 2H Forecast (Revised) Year) Forecast) Sales 196.7 187.5 384.2 208.7 216
Slide 19: FY2026 Earnings Forecast (2) Market Outlook
FY2026 Earnings Forecast (2) Market Outlook Weather Symbols ◼ Demand for AI-related and power infrastructure applications grew more than initially anticipated ◼ Prolonged adjustment of market inventories of rapid antigen test kits shipped in the previous period (Good) (Bad) (Market Trends) FY2026 In
Slide 20: (3) Operating Income Change Factors (vs Initial Forecast)
FY2026 Earnings Forecast (3) Operating Income Change Factors (vs Initial Forecast) ◼ Despite a significant decline in sales of rapid antigen test kits, the forecast was revised upward due to increased sales for AI-related and power infrastructure applications, as well as positive inventory effect (¥
Slide 21: (4) By Segment (vs. Initial Forecast)
FY2026 Earnings Forecast (4) By Segment (vs. Initial Forecast) ◼ Life Innovation was revised downward, but overall was revised upward due to upward revisions in other segments FY2026 DPE FY2026 Incr. Sales Initial Forecast Revised Decr. Production (¥ billions) Forecast Volume Pricing Suspension Elec
Slide 22: (5) Electronics & Innovative Products (Sales Composition by Application)
FY2026 Earnings Forecast (5) Electronics & Innovative Products (Sales Composition by Application) ◼ Growth in demand for AI-related and power infrastructure applications exceeded initial forecasts Sales Composition by Application (Sales: ¥ billions) 150 117.0 Others 110.0 104.4 100 92.2 AI-Related 8
Slide 23: (5) Electronics & Innovative Products (vs Initial Forecast)
FY2026 Earnings Forecast (5) Electronics & Innovative Products (vs Initial Forecast) ◼ Increased demand for AI-related and power infrastructure applications led to favorable volume variances and sales price composition By Application Cost and Others Reason for Variance Operating Income Variance Anal
Slide 24: (5) Life Innovation (Sales Composition by Application)
FY2026 Earnings Forecast (5) Life Innovation (Sales Composition by Application) ◼ Rapid antigen test kits: Shipment volume decreased significantly due to prolonged adjustment of market inventories for shipments in the previous period Sales Composition by Application (Sales: ¥billion) 50 47.1 45.0 43
Slide 25: (5) Life Innovation (vs Initial Forecast)
FY2026 Earnings Forecast (5) Life Innovation (vs Initial Forecast) ◼ Rapid antigen test kits: Shipment volume decreased significantly due to prolonged adjustment of market inventories for shipments in the previous period Operating Income Variance Analysis Reason for Variance (vs Initial Forecast) (¥
Slide 26: (5) Elastomers & Infrastructure Solutions (vs Initial Forecast)
FY2026 Earnings Forecast (5) Elastomers & Infrastructure Solutions (vs Initial Forecast) ◼ Upward revision due to inventory effect Operating Income Variance Analysis (¥ billions) Reason for Variance (vs Initial Forecast) (vs Initial Forecast) Volume Pricing Cost and Others 8.0 7.0 +0.4 +0.9 ±0.0 -0.
Slide 27: (5) Polymer Solutions (vs Initial Forecast)
FY2026 Earnings Forecast (5) Polymer Solutions (vs Initial Forecast) ◼ Upward revision due to inventory effect Operating Income Variance Analysis (¥ billions) Reason for Variance (vs Initial Forecast) (vs Initial Forecast) 7.5 Volume Pricing Cost and Others +5.5 billion yen +3.6 LGP applications for
Slide 28: (6) Investments, Depreciation and R&D Expenses by Segment
FY2026 Earnings Forecast (6) Investments, Depreciation and R&D Expenses by Segment ◼ Decrease in depreciation and R&D expenses (¥ billions) Investment & Lending *1 Depreciation R&D Full Year Full Year Full Year 1H (YoY) 1H (YoY) 1H (YoY) (vs. Initial Forecast) (vs. Initial Forecast) (vs. Initial For
Slide 29: (7) Shareholder Returns and ROE
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) FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2026 Actual Actual Actual Actual Actual Actual ini
Slide 30: (Reference) Full-year Forecast (By Segment) (Year on Year)
(Reference) Full-year Forecast (By Segment) (Year on Year) FY2026 DPE FY2025 Incr. Sales Actual Forecast Decr. Production (¥ billions) (Revised) Volume Pricing Suspension Electronics & Innovative Products 104.4 117.0 +12.6 +1.9 +10.7 Life Innovation 40.5 40.0 -0.5 -0.4 -0.1 Elastomers & Infrastructu
Slide 31: (Reference) Quarterly Trends (By Segment)
(Reference) Quarterly Trends (By Segment) (¥ billions) FY2024 FY2025 FY2026 Sales 1Q 2Q 2H 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Actual Actual Forecast Electronics & Innovative Products 21.9 23.2 22.5 24.7 23.6 26.5 25.8 28.5 26.4 29.7 60.9 Life Innovation 7.8 14.6 12.7 8.2 6.6 14.8 13.5 5.6 7.0 12.8 20.2 Elastom
Slide 32: (Reference) ROIC by Segment
(Reference) ROIC by Segment (Operating income : ¥ billions) (ROIC : %) 20.0 17.8 45.0 17.0 15.3 40.0 14.7 13.8 15.0 13.4 13.2 12.1 10.8 35.0 11.4 9.4 9.6 10.0 9.7 30.0 5.7 7.4 6.6 5.4 5.7 4.2 25.0 6.6 6.8 7.3 6.7 4.5 5.7 5.0 2.5 5.6 20.0 3.3 4.0 2.5 2.5 -1.3 0.0 0.0 1.6 15.0 0.3 -0.3 -2.5 -2.5 10.0
Slide 33: 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 based on information available at the time of disclosure and on certain premises set by the Compan
Slide 34: Denka Co., Ltd.
Inquiries regarding this material Denka Co., Ltd. Corporate Communications Dept, TEL 03-5290-5511 URL https://www.denka.co.jp/eng/