Denka : FY2025 Third Quarter Summary of Consolidated Financial Results

February 6, 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 to commence dividend payments: -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 first nine months of the fiscal year ending March 31, 2026 (from April 1, 2025 to December 31, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of parent
      Nine months ended December 31, 2025 December 31, 2024	Millions of yen 290,774 301,598	% (3.6) 3.0	Millions of yen 18,198 11,816	% 54.0 (5.9)	Millions of yen 13,702 4,330	% 216.4 (48.8)	Millions of yen 5,535 2,577	% 114.7 (28.0)

      Note: Comprehensive income	For the nine months ended December 31, 2025:	¥5,143 million	[22.4%]
      	For the nine months ended December 31, 2024:	¥4,203 million	[(77.2)%]

      	Basic earnings per share	Diluted earnings per share
      Nine months ended December 31, 2025 December 31, 2024	Yen 64.23 29.92	Yen - -

   2. Consolidated financial position

   	Total assets	Net assets	Equity ratio
   As of December 31, 2025 March 31, 2025	Millions of yen 655,195 655,524	Millions of yen 312,568 308,296	% 45.2 45.2

   Reference: Equity

   As of December 31, 2025: ¥296,253 million As of March 31, 2025: ¥296,181 million

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen - -	Yen	Yen - -	Yen	Yen
   Fiscal year ended March 31, 2025		50.00		50.00	100.00
   Fiscal year ending March 31, 2026		50.00
   Fiscal year ending March 31, 2026 (Forecast)				50.00	100.00

   Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecasts for consolidated financial results for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

Note: Revisions to the most recently announced earnings forecast: Yes

1. Significant changes in the scope of consolidation during the period: None Newly included: 0 companies (Company name)

   Excluded: 0 companies (Company name)

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:

   None

3. 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

4. Number of issued shares (common shares)

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

      As of December 31, 2025	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 December 31, 2025	2,355,229 shares
      As of March 31, 2025	2,380,123 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

• Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: Yes (voluntary)

• Proper use of earnings forecasts, and other special matters (Notes on statements about the future)

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.

Table of Contents - Attachments

1. Qualitative Information on Financial Results for the Period under Review 2

   1. Operating Results 2

   2. Financial Position 3

   3. Consolidated Financial Results Forecast and Other Forward-Looking Information 3

2. Quarterly Consolidated Financial Statements and Principal Notes 6

   1. Quarterly Consolidated Balance Sheet 6

   2. Quarterly Consolidated Statements of Income and Comprehensive Income 8

      Quarterly Consolidated Statement of Income

      Nine Months Ended December 31 8

      Quarterly Consolidated Statement of Comprehensive Income

      Nine Months Ended December 31 9

   3. Notes to Quarterly Consolidated Financial Statements 10

Notes on going concern assumption 10

Notes in case of significant changes in shareholders' equity 10

Segment information, etc 11

Notes on statement of cash flows 12

1

1. Qualitative Information on Financial Results for the Period under Review

(1) Operating Results

During the nine months ended December 31, 2025, the Japanese economy moved toward a moderate recovery as personal consumption and capital investment showed signs of improvement. The global economy as a whole showed a rebound. However, the outlook remains uncertain due to factors such as the U.S. tariff increase.

Amid such circumstances, the Group focused on expanding business and securing profit by promoting initiatives based on the three growth strategies set forth in "Mission 2030," the eight-year management plan launched in FY2023: Business Value Creation, Human Resources Value Creation, and Management Value Creation.

As a result, for the nine months ended December 31, 2025, sales volume of electronics and innovative products increased. However, net sales were ¥290,774 million, down ¥10,824 million, or 3.6%, year on year. This was mainly due to lower proceeds from sales price reviews in response to falling raw material and fuel prices. In terms of earnings, operating income was ¥18,198 million (up ¥6,382 million, or 54.0%, year on year), and ordinary income was ¥13,702 million (up ¥9,371 million, or 216.4%, year on year). Net income attributable to owners of parent was ¥5,535 million (up ¥2,957 million, or 114.7%, year on year), due to the recording of the gain on transfer of factory land at the Ofuna Plant as an extraordinary income, despite also recording an extraordinary loss related to Denka Performance Elastomer LLC, a U.S.-based subsidiary that has elected not to restart production at its chloroprene rubber manufacturing facilities for an indefinite period.

[Electronics & Innovative Products Division]

Sales of spherical silica and spherical alumina remained strong with the expansion of demand for semiconductors for generative AI applications. Sales of high-performance film also increased, supported by a gradual recovery in demand for electronic component applications. Regarding acetylene black, sales for xEV applications declined year on year, but sales for high-voltage cable applications increased year on year, resulting in overall sales growth. In addition, sales of ALSINK, a high-reliability heat dissipating plate, increased due to a recovery in demand for electric railway applications and growth in demand for direct current transmission applications.

As a result, division net sales increased ¥8,378 million, or 12.4%, year on year to ¥75,904 million, and operating income increased ¥2,817 million, or 40.7%, year on year to ¥9,741 million.

[Life Innovation Division]

Sales of POCT test reagents increased slightly year on year due to the early onset of influenza season. In addition, sales of other test reagents resulted in a year-on-year decrease due partly to some slump in sales for overseas. Influenza vaccines were shipped as planned.

As a result, division net sales decreased ¥147 million, or 0.4%, year on year to ¥34,947 million, and operating income decreased ¥995 million, or 13.1%, year on year to ¥6,606 million.

[Elastomers & Infrastructure Solutions Division]

Demand for chloroprene rubber continued to remain sluggish. In addition, sales of corrugated pipes for agricultural and civil engineering applications increased, but sales of special cement additives fell below the previous fiscal year's level due to construction delays and other factors.

As a result, division net sales decreased ¥11,652 million, or 13.8%, year on year to ¥72,803 million, and operating loss was ¥2,291 million (operating loss in the corresponding period of the previous fiscal year was

¥5,670 million).

2