Denka Co., Ltd. · TSE:4061
Denka — FY2025 Earnings Presentation
34 slides from Denka's earnings presentation, May 13, 2026
Slide 1: Results Presentation of FY2025
Results Presentation of FY2025 (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, the original shall prevail.
Slide 2: Latest Status of Products for AI (1): SNECTON
Latest Status of Products for AI (SNECTON, Spherical Fused Silica, Spherical Alumina(1) ◼ SNECTON*: Certified by various CCL manufacturers. Dedicated facility to be completed soon *SNECTON: Low dielectric organic insulation resin. The only material that achieves both excellent low Df (Dielectric Dis
Slide 3: Latest Status of Products for AI (2): Spherical Alumina
Latest Status of Products for AI (SNECTON, Spherical Fused Silica, Spherical Alumina) (2) ◼ Spherical Alumina for Thermal Conductive Molding Compound Application: Demand for GDDR7 remains firm. Adoption for multilayer packages has also been decided. High-speed memory Strengths of Our Products - Prod
Slide 4: 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 +8.8 billion yen in FY2025, and expected to be +15.0 billion yen in FY2026 (vs. FY2024), both in line with the plan ◼ Extra
Slide 5: Presentation Highlights
Presentation Highlights ◼ Operating income: 26.2 billion yen (+11.8 billion yen YoY) Electronics & Innovative Products volume +6.7: Expanding demand for semiconductors (AI-related) and power infrastructure, and moderate demand recovery for semiconductors (general-purpose) FY2025 DPE production suspe
Slide 6: FY2025 (Fiscal Year Ended March 2026) Results
FY2025 (Fiscal Year Ended March 2026) Results 6
Slide 7: FY2025 Results (1) Summary
FY2025 Results (1) Summary (Year on Year, vs. February Forecast) ◼ Operating income achieved a V-shaped recovery due to the growing demand for semiconductors (AI-related) and power infrastructure together with the effects of fundamental measures for chloroprene rubber ◼ Net income increased signific
Slide 8: FY2025 Results (2) Operating Income Change Factors
FY2025 Results (2) Operating Income Change Factors (Year on Year) ◼ Increased demand for semiconductors (AI-related) and power infrastructure drove positive volume growth and, together with the impact of the DPE production suspension, led to significant profit growth Operating Income Variance Analys
Slide 9: FY2025 Results (3) Change Factors by Segment
FY2025 Results (3) Change Factors by Segment (Year on Year) ◼ Significant profit increase in Electronics & Innovative Products and Elastomers & Infrastructure Solutions DPE (¥ billions) Sales FY2024 FY2025 Incr. Decr. Production Volume Pricing Suspension Electronics & Innovative Products 92.2 104.4
Slide 10: FY2025 Results (4) Change Factors by Segment (vs. 3Q)
FY2025 Results (4) Change Factors by Segment (vs. FY2025 3Q) ◼ While profit decreased for Life Innovation, overall profit was in line with the previous quarter as other segments increased profit (¥ billions) FY2023 FY2024 FY2025 vs. 3Q Sales 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (Incr. Decr.) Electron
Slide 11: FY2025 Results (5) Electronics & Innovative Products
FY2025 Results (5) Electronics & Innovative Products (Year on Year) ◼Profit increased, driven by rising demand for Semiconductors (AI-Related) and power infrastructure, together with a gradual recovery in Semiconductor (General-Purpose) demand By Application Cost and Others Reason for Variance (Year
Slide 12: FY2025 Results (5) Life Innovation
FY2025 Results (5) Life Innovation (Year on Year) ◼ Profit decreased since shipments of COVID-19 test kits decreased due to lower testing demand, as COVID-19 was less prevalent than in the previous year Operating Income Variance Analysis Reason for Variance (Year on (Year on Year) Year) (¥ billions)
Slide 13: FY2025 Results (5) Elastomers & Infrastructure Solutions
FY2025 Results (5) Elastomers & Infrastructure Solutions (Year on Year) ◼ Losses eliminated due to impacts from the suspension of DPE production Operating Income Variance Analysis Reason for Variance (Year on (Year on Year) (¥ billions) Year) 0.1 +8.8 Volume Pricing Cost and Others +8.0 billion yen
Slide 14: FY2025 Results (5) Polymer Solutions
FY2025 Results (5) Polymer Solutions (Year on Year) ◼ Profit increased, supported by revisions to appropriate prices for food wrapping sheets and containers, together with the production consolidation of Toyokalon Operating Income Variance Analysis Reason for Variance (Year on (Year on Year) Year) (
Slide 15: FY2025 Results (6) Breakdown by Segment (vs. February Forecast)
FY2025 Results (6) Breakdown by Segment (vs. 2025 February Forecast) ◼ Overall results exceeded the forecast, driven by the strong performance of Electronics & Innovative Products FY2025 DPE (¥ billions) FY2025 Sales February Actual Incr. Decr. Production Forecast Volume Pricing Suspension Electroni
Slide 16: FY2026 Earnings Forecast
FY2026 (Fiscal Year Ending March 2027) Earnings Forecast 16
Slide 17: (1) Consolidated Summary
FY2026 Earnings Forecast (1) Consolidated Summary (Year on Year) ◼ Incorporated a -5.0 billion yen impact from the situation in the Middle East to Management Plan Mission 2030 Phase 2 FY2025 FY2026 FY2026 (Year on FY2026 FY2026 (billion yen) Actual Plan Forecast Year) 1H Forecast 2H Forecast Sales 3
Slide 18: Impact of the Middle East Situation, etc. to the Management Plan
FY2026 Earnings Forecast: Impact of the Middle East Situation, etc. to the Management Plan ◼ Incorporating a decrease in production of acetylene black and other products due to raw materials supply restrictions, and a decrease in sales volume of rapid antigen test kits, assuming the spread of infect
Slide 19: (2) Market Outlook
FY2026 Earnings Forecast (2) Market Outlook Weather Symbols ◼ Ongoing steady growth for AI-Related applications and power infrastructure (Good) (Bad) (Market Trends) FY2025 Actual FY2026 Forecast AI-Related: Ongoing steady growth AI-Related: Ongoing steady growth Semiconductor and Electronic Compone
Slide 20: (3) Operating Income Change Factors
FY2026 Earnings Forecast (3) Operating Income Change Factors (Year on Year) ◼ Expecting operating income increase; reflecting continued demand growth for AI-related products (SNECTON, spherical fused silica, spherical alumina, etc.) and the positive impact of the DPE shutdown, while incorporating th
Slide 21: (4) By Segment
FY2026 Earnings Forecast (4) By Segment (Year on Year) ◼ Despite the negative impact of the situation in the Middle East, overall profit increased due to higher profits in Elastomers & Infrastructure Solutions FY2025 FY2026 (¥ billions) Sales Actual Forecast Incr. Decr. DPE Production Volume Pricing
Slide 22: (5) Electronics & Innovative Products (Sales Composition by Application)
FY2026 Earnings Forecast (5) Electronics & Innovative Products (Sales Composition by Application) ◼ Demand expansion for Semiconductors (AI-Related) and power infrastructure continues Sales Composition by Application 150.0 (Sales: ¥ billions) 110.0 104.4 100.0 87.8 92.2 Others AI-Related AI-Related
Slide 23: (5) Electronics & Innovative Products
FY2026 Earnings Forecast (5) Electronics & Innovative Products (Year on Year) ◼ Profit decreased due to the situation in the Middle East, despite growing demand for AI and power infrastructure and a recovery trend in semiconductor and electronic components-related demand By Application Cost and Othe
Slide 24: (5) Life Innovation (Sales Composition by Application)
FY2026 Earnings Forecast (5) Life Innovation (Sales Composition by Application) ◼ Rapid antigen test kits assume infectious disease prevalence will be level year on year. IVD reagents revenue to increase due to consolidation of Kainos. Sales Composition by Application (Sales: ¥ billions) 50.0 47.1 4
Slide 25: (5) Life Innovation
FY2026 Earnings Forecast (5) Life Innovation (Year on Year) ◼ Rapid antigen test kits: Assuming infectious disease outbreaks at levels similar to the previous year. IVD reagents: Positive impact from the consolidation of Kainos Operating Income Variance Analysis Reason for Variance (Year on (Year on
Slide 26: (5) Elastomers & Infrastructure Solutions
FY2026 Earnings Forecast (5) Elastomers & Infrastructure Solutions (Year on Year) ◼ Significant increase due to impact of DPE production suspension Operating Income Variance Analysis Reason for Variance (Year on (¥ billions) (Year on Year) Year) Volume Pricing Cost and Others +6.1 7.0 +6.2 Demand ex
Slide 27: (5) Polymer Solutions
FY2026 Earnings Forecast (5) Polymer Solutions (Year on Year) ◼ Significant profit decrease due to styrene monomer regular repair costs and production cuts impacted by the Middle East Operating Income Variance Analysis Reason for Variance (Year on (Year on Year) (¥ billions) Year) Volume Pricing Cos
Slide 28: Cost Reductions Under the Best Practices Project
Cost Reductions Under the Best Practices Project • The Best Practices Project is promoting various measures to achieve cost reductions • In FY2025, cost reductions of 3.7 billion yen were achieved through measures such as reducing costs • For FY2026, 6.8 billion yen has been factored into the revise
Slide 29: (6) Investments, Depreciation and R&D Expenses by Segment
FY2026 Earnings Forecast (6) Investments, Depreciation and R&D Expenses by Segment ◼ In FY2026, investment in the new production plant for acetylene black in Thailand will progress, and the capital investment amount will decrease (¥ billions) *1 Investment & Lending Depreciation R&D FY2025 FY2026 FY
Slide 30: (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 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Actual Actual Actual Actual Actual Actual Actual Forecast Net Income (¥ billions) 22
Slide 31: (Reference) ROIC by Segment
(Reference) ROIC by Segment (Operating income : ¥ billions) (ROIC : %) 20.0 45.0 17.8 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 6.0 6.6 5.4 4.2 5.5 25.0 5.0 6.6 6.8 7.3 6.7 4.5 4.5 4.8 2.5 20.0 3.3 2.5 2.5 -1.3 0.0 2.3 0.0 1.6 15.0 0.3 -2.5 -0.3 -4.9 10.0
Slide 32: (Reference) Quarterly Trends (By Segment)
(Reference) Quarterly Trends (By Segment) (¥ billions) FY2023 FY2024 FY2025 FY2026 Forecast Sales 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1H 2H Electronics & Innovative Products 19.2 22.5 21.7 24.5 21.9 23.2 22.5 24.7 23.6 26.5 25.8 28.5 50.0 60.0 Life Innovation 7.2 15.0 15.8 9.0 7.8 14.6 12.7 8.2 6.6
Slide 33: Cautionary statement regarding forward-looking information
Possibility of chemistry 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 p
Slide 34: 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/