Denka : Results Presentation of FY2025

Published May 13, 2026 at 1:15 a.m. UTC

Source: MarketScreener

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 this translated slide and the Japanese original, the original shall prevail.

Securities code: 4061 Denka Co., Ltd May 13, 2026

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 Dissipation Factor) that significantly reduces transmission loss and processability

Component Materials of CCL
Semiconductor package substrates

(IC substrates)
Motherboards
(Low dielectric multilayer boards)
CCL
Copper foil
Soft resin Hard resin Filler Glass cloth Insulating Substrate
Copper foil
Soft-type SNECTON

Hard-type SNECTON

Low dielectric loss tangent spherical silica

Construction of dedicated plant

to be completed

(Mid-May)

Already certified by various CCL manufacturers

Sales volume is increasing due to expanding needs for low dielectric properties

Developed products are being evaluated by various companies for sales launch during FY2026

Under final review for capacity expansion of hard-type products

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
Thermal Conductive Molding Compound for High-Speed Memory
Strengths of Our Products
- Product Lineup with various particle sizes
- By optimally combining products, formulation proposals that achieve high heat dissipation are possible
- To respond to semiconductor miniaturization, fine powder production is possible (direct production rather than sorting for target particle sizes)

Spherical Alumina for Thermal Conductive Molding Compound

For GDDR (High-speed data transfer)

For multilayer packages of high-speed memory ( HBM, etc.)

Demand for GDDR7 remains firm. User evaluations of grades for next-generation GDDR are also progressing smoothly.

Adoption for

new projects decided.

For next-generation

Packages, Development of new grades is also underway

GPU

Multilayer package

of high-speed memory

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
Extraordinary gains / losses: Certain amount of extraordinary losses are expected in FY2026 as well; however,
we plan to off-set these losses by recording extraordinary gains, etc.
Develop a plan until anticipated closure early in the Mission 2030 Phase 2 period ( FY2026-FY2028)

To safely shut down the manufacturing facilities, DPE is in the final stages of the removal and disposal of materials, including raw materials and

Latest Status

Equipment

Number of Employees

intermediates.

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 → approx. 80 at the end of April 2026)

Stakeholders To minimize future costs, DPE is continuing discussions with relevant stakeholders.

(¥ billions)

Operating income

Extraordinary gains and losses

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.

Impact of fundamental measures

(vs. FY2024)

DPE-related losses

Gain on sale of land for Ofuna Plant

Gain on sale of strategically held shares

Recognition of deferred tax assets

FY2024

-17.9

(Impairment loss -16.1, etc.)

FY2025

+8.8

-18.4

(Write-down of raw materials and intermediate products, and costs associated with material removal costs,

etc.,including labor costs )

+8.2

+12.6

FY2026

Certain costs are also expected to be incurred as extraordinary losses in FY2026

+15.0

Compensate

Consider

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)

DPE production suspension: +8.8

Net income: 15.7 billion yen (+28.0 billion yen YoY)

Extraordinary gains: Gain on sale of strategic cross-shareholdings Extraordinary gains: Gain on sale of land for Ofuna Plant

Extraordinary losses: Loss on liquidation of business, etc. (DPE-related, etc.)

ROE 5.2%

FY2024 +0.4 → FY2025 +12.6 FY2024 None → FY2025 +8.2

20.8

Compensate

FY2024 -25.1 →-21.1

FY2025

Actual

(P6-P15)

FY2026

Forecast (P16-P29)

Incorporated a impact of the situation in the Middle East (-5.0 billion yen) into the Mission 2030 Management Plan Phase 2 targets

Operating income: 30.0 billion yen (-5.0 billion yen vs. Phase 2 plan, +3.8 billion yen YoY)
Net income: 16.0 billion yen ( -2.0 billion yen vs. Phase 2 plan, +0.3 billion yen YoY)

(Status of each segment excluding the impact of the situation in the Middle East [vs. Phase 2 plan])

Electronics & Innovative Products: Upward revision due to expanding demand for AI-related products

(SNECTON, spherical fused silica, spherical alumina, etc.)

Life Innovation: Downward revision of sales volume for rapid antigen test kits in response to the current trends in infectious disease outbreaks

Shareholder Returns (P30)

Maintain dividend at 100 yen per share, the same as the previous year (54% total return ratio)
Future dividend policy: Aiming to maintain or increase dividend per share based on a total return ratio of 50% (cumulative total for the eight years of the management plan)