Denka : FY2025 Summary of Consolidated Financial Statements

May 13, 2026

Company name: Denka Co. Ltd. Listing: Tokyo Stock Exchange Securities code: 4061

URL: https://www.denka.co.jp/eng

Representative: Ikuo Ishida, Representative Director, President

Inquiries: Hiroyuki Yamamoto, General Manager, Corporate Communications Dept. Telephone: +81-3-5290-5511

Scheduled date of annual general meeting of shareholders: June 19, 2026 Scheduled date to commence dividend payments: June 22, 2026 Scheduled date to file annual securities report: June 17, 2026 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for equity analysts and institutional investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 384,247 400,251	% (4.0) 2.8	Millions of yen 26,225 14,413	% 82.0 7.7	Millions of yen 19,295 7,623	% 153.1 39.3	Millions of yen 15,695 (12,300)	% - -

      Note: Comprehensive income	For the fiscal year ended March 31, 2026:	¥19,143 million	[-%]
      	For the fiscal year ended March 31, 2025:	¥(7,089) million	[-%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended March 31, 2026 March 31, 2025	Yen 182.10 (142.73)	Yen - -	% 5.2 (4.1)	% 2.9 1.2	% 6.8 3.6

      Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2026: ¥1,700 million For the fiscal year ended March 31, 2025: ¥1,983 million

   2. Consolidated financial position

      	Total assets	Net assets	Equity ratio	Net assets per share
      As of March 31, 2026 March 31, 2025	Millions of yen 681,006 655,524	Millions of yen 338,826 308,296	% 45.6 45.2	Yen 3,604.53 3,436.95

      Reference: Equity

      As of March 31, 2026: ¥310,709 million As of March 31, 2025: ¥296,181 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 36,154 18,620	Millions of yen (45,021) (59,586)	Millions of yen 7,603 40,118	Millions of yen 35,270 37,002

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen - -	Yen	Yen - -	Yen	Yen	Millions of yen 8,627 8,626	%	%
   Fiscal year ended March 31, 2025		50.00		50.00	100.00		-	2.9
   Fiscal year ended March 31, 2026		50.00		50.00	100.00		54.9	2.8
   Fiscal year ending March 31, 2027 (Forecast)	-	50.00	-	50.00	100.00		53.9

3. Forecasts for consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(Percentages indicate year-on-year changes.)

1. Significant changes in the scope of consolidation during the period: Yes

   Newly included: 3 companies (TOYO STYRENE Co., Ltd., Flowers Co., Ltd., and KAINOS Laboratories, Inc.)

   Excluded: 0 companies (Company name)

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2026	88,555,840 shares
      As of March 31, 2025	88,555,840 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2026	2,356,126 shares
      As of March 31, 2025	2,380,123 shares

   3. Average number of shares outstanding during the period

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended March 31, 2026 March 31, 2025	Millions of yen 300,421 308,715	% (2.7) 1.7	Millions of yen 12,814 2,904	% 341.1 (35.0)	Millions of yen 9,056 3,730	% 142.7 59.5	Millions of yen 3,550 (11,110)	% - -

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended March 31, 2026 March 31, 2025	Yen 41.19 (128.92)	Yen - -

2. Non-consolidated financial position

   	Total assets	Net assets	Equity ratio	Net assets per share
   As of March 31, 2026 March 31, 2025	Millions of yen 493,116 502,602	Millions of yen 193,865 197,105	% 39.3 39.2	Yen 2,249.03 2,287.25

   Reference: Equity

   As of March 31, 2026: ¥193,865 million As of March 31, 2025: ¥197,105 million

   • Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

   • Proper use of earnings forecasts, and other special matters

Earnings forecasts and other forward-looking statements in this report are based on information presently available to management and assumptions that management deems reasonable. Actual earnings and other forecasts may differ significantly from those in this report in accordance with numerous factors. For the assumptions used for the financial results forecasts and the notes regarding the use thereof, please refer to "1. Overview of Operating Results, etc. (4) Future Outlook" on page 5 of the attached document.

Table of Contents - Attachments

1. Overview of Operating Results, etc 2

   1. Overview of Operating Results for the Fiscal Year under Review 2

   2. Overview of Financial Position for the Fiscal Year under Review 3

   3. Overview of Cash Flows for the Fiscal Year under Review 4

   4. Future Outlook 5

2. Basic Policy on Selection of Accounting Standards 6

3. Consolidated Financial Statements and Principal Notes 7

   1. Consolidated Balance Sheet 7

   2. Consolidated Statements of Income and Comprehensive Income 9

   3. Consolidated Statement of Changes in Equity 11

   4. Consolidated Statement of Cash Flows 13

   5. Notes to Consolidated Financial Statements 14

Notes on going concern assumption 14

Segment information, etc 15

Per share information 21

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