Denka : FY2025 Third Quarter Financial Results Presentation Materials

Results Presentation

of FY2025 3Q

(The 9 Months of the Fiscal year ending March 2026)

Securities code: 4061 Denka Co., Ltd February 6, 2026

• Continuing to safely shut down manufacturing facilities
• Progress in optimizing staffing levels as shut-down proceeds
• Discussions with relevant stakeholders are ongoing

  * DPE: Denka Performance Elastomer LLC, a U.S. chloroprene rubber manufacturing subsidiary

  Equipment	To safely shut down the manufacturing facilities, DPE is continuing to remove and dispose of materials, including raw materials and intermediates. 2Q: Completed removal of the substances prioritized based on safety evaluation. 3Q: Removal of remaining materials and cleaning of equipment are in steady progress.
  Number of Employees	As the shut-down progresses, DPE is working to optimize its workforce. (Number of employees: approx. 250 at the end of March 2025 → approx. 140 at the end of December 2025 →anticipate approx. 100 in April 2026)
  Stakeholders	To minimize future costs, DPE is continuing discussions with relevant stakeholders.

  Note: This slide has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated slide and the Japanese original, the original shall prevail.

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• Operating income: Fundamental measures had a +4.2 billion yen impact in cumulative 3Q in line with the plan;

  expecting a +8.6 billion yen impact for the full year (vs. FY2024)

• Extraordinary losses: -13.5 billion yen in cumulative 3Q due to the write-down of raw materials and intermediate products, as well as labor and other costs associated with material removal costs and related expenses. Labor and other costs associated with the removal and cleaning activities to continue as extraordinary losses at 4Q;

however, we plan to offset these as much as possible, such as extraordinary gains

・Full benefit from 2H due to plans to ship all DPE

(¥ billions)

Operating income

Extraordinary gains and losses

Impact of fundamental

measures

DPE-related losses

Gain on sale of land for Ofuna Plant

Gain on sale of strategic cross-shareholdings, etc.

1Q

+0.9

-2.1

(only includes write-downs of raw materials and intermediate goods, etc.)

+8.2

0.0

2Q

+0.9

-6.3

(Labor and other costs associated with material removal costs and related expenses)

-

0.0

3Q

+2.5

-5.1

(Labor and other costs associated with material removal costs and related expenses)

-

0.0

4Q Full-Year

+4.3 +8.6

Labor and other costs associated with removal and cleaning activities to continue as extraordinary losses at 4Q

Compensate

Consider

inventory by the end of 1H

The 4Q improvement is expected to be significant, as the 4Q last year saw a further deterioration in profitability due to the impact of periodic repairs to DPE and other factors.

Note: This slide has been translated from the Japanese original for reference purposes only. In the event

of any discrepancy between this translated slide and the Japanese original, the original shall prevail. 3

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Denka Possibility of chemistry

FY2025 3Q Results

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