Slide 1: Results Presentation of FY2025 2Q
Results Presentation of FY2025 2Q (The 1st Half of the Fiscal year ending March 2026) Securities code: 4061 Denka Co., Ltd Note: This slide deck has been translated from the Japanese original November 10, 2025 for reference purposes only. In the event of any discrepancy between this translated slide
Slide 2: Production Suspension at DPE: Latest Status
Production Suspension at DPE (U.S. Chloroprene Rubber Manufacturing Subsidiary) 1) Latest Status After Production Suspension ◼ Continuing to fully bringing down manufacturing facilities and equipment into a safe status ◼ Discussions with each stakeholder are ongoing * DPE: Denka Performance Elastome
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 +1.8 billion yen impact in 1H in line with the plan; expecting a +8.6 billion yen impact for the full year (vs. FY2024) ◼ Extraordinary losses:
Slide 4: Presentation Highlights
Presentation Highlights ◼ Operating income: 9.7 billion yen +0.4 billion yen YoY Electronics & Innovative Products volume +3.4: Moderate demand recovery for general-purpose semiconductors and FY2025 1H expanding demand for generative AI-related semiconductors and power infrastructure Fixed costs -1.
Slide 5: FY2025 1st Half Results
Denka Possibility of chemistry FY2025 1st Half Results
Slide 6: 1st Half Results: Summary
FY2025 1st Half Results 1) Summary (Year on Year, vs Initial Forecast ） ◼ Operating profit rose slightly year on year and exceeded the initial forecast FY2025 FY2024 FY2025 1H 1H Actual 1H Actual (¥ billions) (Year on Year) Initial Forecast （vs Initial Forecast） Sales 199.1 196.7 -2.4 195.0 ＋1.7 Ope
Slide 7: Operating Income Change Factors (Year on Year)
FY2025 1H Results 2) Operating Income Change Factors (Year on Year) ◼ Despite increased demand for generative AI–related semiconductor and power infrastructure applications and a moderate recovery in general-purpose semiconductors, currency fluctuations and higher fixed costs kept profit increase mo
Slide 8: Change Factors by Segment (Year on Year)
FY2025 1H Results 3) Change Factors by Segment By Segment (Year on Year) ◼ While profit increased in Electronics & Innovative Products and Polymer Solutions, profit declined in Life Innovation. As a result, overall performance improved slightly. DPE FY2024 FY2025 (¥ billions) Sales 1H Actual 1H Actu
Slide 9: Change Factors by Segment (vs. FY2025 1Q)
FY2025 1H Results 4) Change Factors by Segment (vs. FY2025 1Q) ◼ Increase in profit for Electronics & Innovative Products and Life Innovation (¥ billions) FY2023 FY2024 FY2025 Vs. Sales FY2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q Electronics & Innovative Products 19.2 22.5 21.7 24.5 21.9 23.2 22.5 24.7
Slide 10: Electronics & Innovative Products (Year on Year)
FY2025 1H Results 5) Electronics & Innovative Products (Year on Year) ◼ Profit increased, driven by stronger demand for generative AI–related semiconductors and power infrastructure applications, as well as a moderate recovery in general-purpose semiconductors Operating Income Variance Reason for Va
Slide 11: Life Innovation (Year on Year)
FY2025 1H Results 5) Life Innovation (Year on Year) ◼ Shipment decline in COVID-19 test kits from reduced testing demand; ongoing decrease in IVD reagents due to sluggish demand in certain overseas areas Operating Income Variance Reason for Variance Analysis (Year on Year) (Year on Year) (¥ billions
Slide 12: Elastomers & Infrastructure Solutions (Year on Year)
FY2025 1H Results 5) Elastomers & Infrastructure Solutions (Year on Year) ◼ Year-on-year results remained flat, as changes in inventory valuation write-downs for chloroprene rubber offset the positive impact from the DPE plant suspension Operating Income Variance Reason for Variance Analysis (Year o
Slide 13: Polymer Solutions (Year on Year)
FY2025 1H Results 5) Polymer Solutions (Year on Year) ◼ Profit increased, supported by revisions to appropriate prices for food wrapping sheets and containers Operating差異分析(前年比) 営業利益 Income Variance (¥ billions) Reason for Variance Analysis (Year on Year) 差異理由 (前年比) (Year on Year) +7.7 1.5 0.6 +0.3
Slide 14: By Segment (vs Initial Forecast)
FY2025 1H Results 6) By Segment (vs Initial Forecast) ◼ Electronics & Innovative Products exceeded initial forecast (¥ billions) FY2025 FY2025 Sales 1H Initial 1H Actual DPE Forecast Incr. production Decr. Volume Pricing suspension Electronics & Innovative Products 50.0 50.1 +0.1 +0.5 -0.3 Life Inno
Slide 15: FY2025 Earnings Forecast
Denka Possibility of chemistry FY2025 Earnings Forecast
Slide 16: Earnings Forecast: Consolidated Summary
FY2025 Earnings Forecast 1) Consolidated Summary (Year on Year) ◼ Only sales revised from the initial forecast ◼ Net income: We expect to post extraordinary losses as we build on the fundamental in the chloroprene rubber business; however, we expect extraordinary gains to compensate FY2025 FY2024 FY
Slide 17: Update on Major Differences From FY2024
FY2025 Earnings Forecast Update on Major Differences From FY2024 (Operating Income Basis) ◼ Progress is on par with the initial forecast, including the temporary suspension of production at DPE Major Differences From FY2024 (Operating Income Basis) (YoY, ¥ billions) Initial Forecast Revised Forecast
Slide 18: Progress Vs. Forecast
FY2025 Earnings Forecast 2) Progress Vs. Forecast ◼ We expect overall results to stay in line with the initial forecast, with Life Innovation likely to fall below plan due to the decline in infectious diseases, and demand in Electronics & Innovative Products exceeds expectations for generative AI-re
Slide 19: Investments, Depreciation and R&D Expenses by Segment
FY2025 Earnings Forecast 3) Investments, Depreciation and R&D Expenses by Segment ◼ Depreciation changed from initial forecast (¥ billions) Investment & Lending Depreciation R&D Full Year Full Year Full Year (vs Initial 1H (YoY) 1H (YoY) 1H (YoY) (vs Initial Forecast) (vs Initial Forecast) Forecast)
Slide 20: Shareholder Returns and ROE
FY2025 Earnings Forecast 4) 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 21: (Reference) Full-year Forecast (By Segment)
(Reference) Full-year Forecast (By Segment) (Year on Year) DPE FY2024 FY2025 (¥ billions) Sales Actual Forecast Incr. production 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 +2.3 -0.5 Elastomers & Infrastructure Solutio
Slide 22: (Reference) Forecast (By Segment) (vs Initial Forecast)
(Reference) Forecast (By Segment) (vs Initial Forecast) FY2025 DPE FY2025 Sales Initial Forecast Revised Incr. production (¥ billions) Forecast Decr. Volume Pricing suspension Electronics & Innovative Products 105.0 105.0 ± 0.0 +1.3 -1.3 Life Innovation 45.0 45.0 ±0.0 -1.1 +1.1 Elastomers & Infrastr
Slide 23: (Reference) Quarterly Trends (By Segment)
(Reference) Quarterly Trends (By Segment) FY2023 FY2024 FY2025 2H Sales 1Q 2Q Forecast (¥ billions) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (3Q・4Q) Actual Actual Electronics & Innovative Products 19.2 22.5 21.7 24.5 21.9 23.2 22.5 24.7 23.6 26.5 54.9 Life Innovation 7.2 15.0 15.8 9.0 7.8 14.6 12.7 8.2 6.6 14.8 23.6
Slide 24: Direction of Management Plan: Mission 2030 Revision
Direction of Management Plan Mission 2030 Revision Revised of the Mission 2030 Management Plan To be announced in February 2026 24
Slide 25: Review of Past Results
Review of Past Results ◼ While previous growth stemmed from vision-based goal setting, Mission2030 has experienced a slow start Management Plan Denka Value-Up Mission2030 FY2023-FY2025 FY2026-FY2028 FY2029-FY2030 (Phase 1) (Phase 2) (Phase 3) Operating Income 100.0 (Initial target) ¥ billions Operat
Slide 26: Current Conditions Behind Management Plan Revision
Current Conditions Behind Management Plan Revision ◼ Initiatives in Phase 1 (FY2023–FY2025) to generate profit in Phase 2 (FY2026–FY2028) Status of Phase 1 (FY2023-FY2025) Initiatives Changes in Conditions 1. Delay in monetization from upfront investments due to 1. Make aggressive upfront investment
Slide 27: Key Directions for Revising the Mission2030 in Phase 2
Key Directions for Revising the Mission2030 in Phase 2 ◼ Target ROE of 8% or higher as a highly achievable goal in Phase 2 (FY2026-FY2028) of Mission2030 Mission2030 Initial plan FY2023-FY2025 FY2026-FY2028 (Phase 1) (Phase 2) ＜FY2030＞ ・Operating Income 100 billion yen Maintaining our visionary ・ROE
Slide 28: Reduce DPE-related burdens at an earlier stage
1. Reduce DPE-related burdens at an earlier stage ◼ Operating income: Fundamental measures had a +15.0 billion yen impact in FY2026 (vs. FY2024) ◼ Net income: Targeting ROE of 8% or higher during Phase 2, despite the possibility of extraordinary losses beyond FY2026 due to fundamental measures. Targ
Slide 29: Select and Focus on Priority Areas (Strategy Overview)
2. Select and Focus on Priority Areas (Strategy Overview) *See reference page for details by product. ◼ Execute three strategies with well-defined focus: strategic expansion, reap the benefit of upfront investments, and capital efficiency improvement ＆ business model shifts Fields ICT&Energy Healthc
Slide 30: Select and Focus on Priority Areas (Four-Quadrant Analysis)
2: Select and Focus on Priority Areas (Four-Quadrant Analysis) ◼ Clarify the direction for each business ICT&Energy Phase 1 (Concept) Market Growth Rate ⚫ Semiconductor applications Target direction (Generative AI-Related) 【Growth Driver】 ⚫ Power Infrastructure applications ✓ Leveraging ⚫ New produc
Slide 31: Capital Allocation and Governance
Capital Allocation and Governance ◼ Strengthen governance by improving management decision-making speed and related areas ⚫ Dividend policy: Aiming to maintain or increase dividend per share based on a total Shareholder Returns return ratio of 50% (cumulative total for the eight years of the managem
Slide 32: Medium- to Long-Term Direction
Medium- to Long-Term Direction ◼ Work toward the future we envision beyond Phase 3 ICT&Energy Healthcare Sustainable Living Phase 1 Focused upfront investments and restructuring of unprofitable businesses Growth businesses Cash cow businesses Phase 2 ICT&Energy Healthcare Sustainable Living Rebuildi
Slide 33: (Reference) Select and Focus on Priority Areas (by Product)
(Reference) Select and Focus on Priority Areas (by Product) * Supplemental information for page 29 ◼ Execute three strategies with well-defined focus: strategic expansion, reap the benefit of upfront investments, and capital efficiency improvement ＆ business model shifts Fields Business ICT&Energy H