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

Consolidated Financial Results for the Three Months Ended June 30, 2024 [JGAAP]
Company Name:

August 9, 2024
Stock Exchange Listing: Tokyo

Kanto Denka Kogyo Co., Ltd.

Code Number: 4047 https://www.kantodenka.co.jp/english/
Representative:
Jun’ichi Hasegawa, President
Contact: Masanobu Shirokura, General Manager, Public Relations & Investor Relations Dept. Phone: +81-3-4236-8804
Scheduled date to commence dividend payments:―
Availability of supplementary briefing material on financial results: Yes
Financial results briefing session: None

1. Consolidated financial results for the first quarter of the fiscal year ending March 31, 2025 (April 1, 2024–June 30, 2024)(Amounts are rounded down to the nearest million yen)

(1) Consolidated operating results(% figures are the rate of year-on-year increase or decrease)

Net sales
Millions of yen

Operating profit

Ordinary profit% Millions of yen

Three months ended June 30, 2024
15,445(5.3)
1,266
Three months ended June 30, 2023
16,301 (11.3)(1,411)(Note) Comprehensive income:Three months ended June 30, 2024: ¥2,151 million (—%)
Three months ended June 30, 2023: ¥(22) million (—%)% Millions of yen

%

－－－－

1,918
(859)

Profit attributable toowners of parent
Millions of yen

1,165(310)%－－Basic earnings per share Diluted basic earnings per shareYen

Three months ended June 30, 2024
Three months ended June 30, 2023

Yen

20.29
(5.40)－－(2) Consolidated financial positionTotal assets

Net assets

Millions of yen

Equity ratio

Millions of yen

As of June 30, 2024
126,314
As of March 31, 2024
125,302(Reference) Equity capital:
As of June 30, 2024: ¥65,747 million
As of March 31, 2024: ¥64,006 million

Net assets per share%

67,29765,578

Yen

52.1
51.1

1,144.38
1,114.07

2. Dividends
Annual dividends per share
End of 1Q
Yen

End of 2Q
Yen

End of 3Q

Fiscal year ended March 31, 2024
7.00－
Fiscal year ending March 31, 2025－
Fiscal year ending March 31, 2025
8.00
(Forecast)(Note) Revision of dividend forecast from the latest announcement: NoneYen

Year-endYen

TotalYen－

7.00

14.00

－

8.00

16.00

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2025 (April 1, 2024–March 31, 2025)

Net sales
Millions of yen

Operating profit% Millions of yen(% figures are the rate of year-on-year increase or decrease)
Profit attributable to Basic earnings
Ordinary profit
owners of parent
per share% Millions of yen% Millions of yen

First half
31,100 (10.7)1,900
2,000－
Full year
69,0006.5
4,900
4,800－(Note) Revision of performance forecast from the latest announcement: Yes－－950
2,900%

269.1
－Yen

16.54
50.48

Notes:(1) Significant changes in the scope of consolidation during the current quarter: Not applicable
New: ― companies (company names); Removed: ― companies (company names)(2) Application of special accounting for preparing quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatementi. Changes in accounting policies accompanying amendments to accounting standards, etc.: Noneii. Changes in accounting policies other than i.: Noneiii. Changes in accounting estimates: Noneiv. Retrospective restatement: None
(4) Number of shares issued (common stock)i. Number of shares issued at the end of the period
As of June 30, 2024 57,546,050 shares As of March 31, 2024 57,546,050 shares(including treasury shares)
ii. Number of treasury shares at the end of the period As of June 30, 2024
iii. Average number of shares during the period

93,207 shares As of March 31, 2024

As of June 30, 2024 57,452,843 shares As of June 30, 2023

93,207 shares
57,452,913 shares

Notes: 1. Review of the attached quarterly consolidated financial statements by a certified public accountant or auditing firm: Yes(optional)
2. Proper use of performance forecasts, and other special matters(Notes to forward-looking statements)
The performance outlooks and other forward-looking statements in this document are based on information currently available to theCompany and certain assumptions that the Company deems reasonable, and are not intended to be a promise by the Company thatthey will be realized. Actual results may differ significantly due to various factors. Please refer to "Consolidated earnings forecasts"
on page 3 of the attached materials for information on the performance forecasts.

Contents

1. Overview of operating results, etc...................................................................................................................................... 2(1) Operating results .............................................................................................................................................................. 2(2) Financial position ............................................................................................................................................................. 3(3) Consolidated earnings forecasts ....................................................................................................................................... 3
2. Consolidated financial statements and notes ...................................................................................................................... 4(1) Consolidated balance sheet............................................................................................................................................... 4(2) Consolidated statement of income and consolidated statement of comprehensive income .............................................. 6(Consolidated statement of income) ............................................................................................................................... 6(Consolidated statement of comprehensive income) ...................................................................................................... 7(3) Notes to the consolidated financial statements ................................................................................................................. 8(Special accounting for preparing quarterly consolidated financial statements) ............................................................ 8(Segment information) ................................................................................................................................................... 8(Notes on significant changes in the amount of shareholders’ equity) ........................................................................... 9(Notes on premise of going concern) ............................................................................................................................. 9(Notes on statement of cash flows) ................................................................................................................................ 9-1-

1. Overview of operating results, etc.
(1) Operating results
In the first three months of the fiscal year ending March 31, 2025, the Japanese economy showed signs of a gradual recovery due tothe positive effects of various government policies under an improving employment and income environment. However, severe
conditions continued to prevail. Overseas, the outlook remained uncertain due to the need for caution amid downside risks stemmingfrom such factors as persistent high interest rates in Europe and the United States and concerns over the prospects for the Chinese
economy, as well as inflation, geopolitical tensions in the Middle East, and fluctuations in financial and capital markets.
Amid this business environment, net sales for the first three months of the fiscal year ending March 31, 2025 amounted to ¥15,445million, down ¥856 million or 5.3% year on year, due to decreased sales in the Fine Chemicals Division and Fundamental Chemicals
Division, despite the Group’s active efforts in marketing. On the profit front, the Group recorded an ordinary profit of ¥1,918 million
and profit attributable to owners of parent of ¥1,165 million. (In the first quarter of the previous year, we recorded an ordinary loss of¥859 million and a loss attributable to owners of parent of ¥310 million. These losses were mainly due to the cost of sales remaining
at a high level owing to an inventory balance affected by the surge in the price of raw materials for batteries and a loss on valuationof inventories to reflect the deterioration in selling prices.)
The following provides an overview for each segment.
a. Fundamental Chemicals Division
For inorganic products, sales of caustic soda were down year on year due to a decrease in sales volume and selling price. Salesof hydrochloric acid were up year on year due to effects from price revisions, despite lower sales volume.
For organic products, trichlorethylene sales were up year on year due to an increase in sales volume, despite a lower selling
price. Sales of perchloroethylene were down year on year due to a lower selling price, despite higher sales volume.
As a result of the above, net sales in the Fundamental Chemicals Division amounted to ¥1,981 million, down ¥430 million or
17.8% year on year. Operating loss totaled ¥316 million (versus operating profit of ¥76 million in the first three months of theprevious fiscal year).
b. Fine Chemicals Division
Sales of specialty gases for semiconductors increased year on year due to higher sales volume for nitrogen trifluoride, tungsten
hexafluoride, and hexafluoro-1,3-butadiene.
Sales of lithium hexafluorophosphate, a battery material, were down due to a decrease in sales volume and selling price.
As a result of the above, net sales in the Fine Chemicals Division amounted to ¥12,229 million, down ¥514 million or 4.0%
year on year. Operating income was ¥1,335 million (compared to an operating loss of ¥1,720 million in the first quarter of theprevious year, mainly due to the persistent high cost of sales for battery materials and recognition of a loss on valuation ofinventories).
c. Ferrochemicals Division
Sales of reprographic carriers, used in developers for copiers and printers, were up year on year due to higher sales volumes.
Sales of iron oxide were down year on year due to lower sales of colorants.
As a result of the above, net sales in the Ferrochemicals Division amounted to ¥592 million, up ¥144 million or 32.2% yearon year. Operating profit totaled ¥87 million, up ¥40 million or 85.9% year on year.
d. Commercial Business Division
Commercial business sales were down year on year due to lower sales of chemical products.
As a result of the above, net sales in the Commercial Business Division amounted to ¥158 million, down ¥15 million or 8.8%
year on year. Operating profit totaled ¥43 million, down ¥37 million or 46.6% year on year.

-2-e. Facilities Division
Net sales in chemical facility plant and general industrial plant construction were down year on year due to a decrease in contractwork.
As a result of the above, net sales in the Facilities Division amounted to ¥482 million, down ¥40 million or 7.8% year on year.
Operating profit totaled ¥94 million, up ¥31 million or 49.8% year on year.

(2) Financial position
As of the end of the first quarter of the fiscal year ending March 31, 2025, assets amounted to ¥126,314 million, up ¥1,011 million
from the end of the previous consolidated fiscal year. This was mainly due to increases in notes and accounts receivable―trade, andcontract assets, property, plant and equipment, and investment securities, despite a decrease in cash and deposits.
Total liabilities amounted to ¥59,016 million, down ¥707 million, mainly due to decreases in borrowings, despite an increase incurrent liabilities and others.
Net assets amounted to ¥67,297 million, up ¥1,718 million, mainly due to increases in retained earnings, the valuation difference
on available-for-sale securities, and foreign currency translation adjustments. The equity ratio was 52.1%, versus 51.1% at the end of
the previous fiscal year.

(3) Consolidated earnings forecastsThe consolidated earnings forecast for the first half of the fiscal year ending March 31, 2025 has been revised from the previous
forecast announced on May 15, 2024. For details, please refer to the "Notice Regarding Revision of Earnings Forecast" released
separately.
The above forecasts were created based on information available as of the date of this document's publishing, and actual results
may differ versus forecast figures due to a variety of factors arising in the future.

-3-

2. Consolidated financial statements and notes(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2024

As of June 30, 2024

Assets:Current assets
Cash and deposits
Notes and accounts receivable—trade, andcontract assets
Electronically recorded monetary claims—
operatingMerchandise and finished goods

25,40922,065

14,83515,754

1,292

1,212

6,943

6,224

Work in process
Raw materials and supplies

6,475
3,993

7,900
3,185

Other
Allowance for doubtful accounts

4,359
(41)

4,578
(37)

Total current assets

63,26860,883

Buildings and structures, net
Machinery and equipment, net

12,71919,767

13,086
19,633

Construction in progress
Other, net

10,012
6,543

12,687
6,534

Total property, plant and equipment

Non-current assets
Property, plant and equipment

49,042

51,941Intangible assets
Investments and other assets

752

732

Investment securities
Retirement benefit assets

9,224
11

9,825
10

Deferred tax assets
Other

2,093
916

2,022
905

Allowance for doubtful accounts

(7)

(8)

Total investments and other assets

12,23812,755

Total non-current assets
Total assets-4-62,034

65,430125,302126,314

(Millions of yen)
As of March 31, 2024

As of June 30, 2024Liabilities:
Current liabilities
Notes and accounts payable—trade
Electronically recorded obligations—operating

7,287
1,021

7,823
1,358

Short-term borrowings
Current portion of long-term borrowings

5,028
9,022

4,603
8,868

272

205

Income taxes payable
Provision for bonuses for directors (and otherofficers)
Other

60

13

8,198

9,347

Total current liabilities

30,891

32,21926,87224,806

151

153

33

37

1,084

1,124

691

675

28,832

26,79759,72459,016

CapitalCapital surplus

2,877
1,859

2,877
1,859

Retained earningsTreasury shares

52,149(66)

52,913(66)

Total shareholders' equity

56,821

57,584

3,939

4,444

2,402
843

2,892
825

7,185

8,163

1,572

1,549

Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets:
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-65,578

67,297125,302126,314(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
From April 1, 2023
to June 30, 2023
Net sales
Cost of sales
Gross profit

From April 1, 2024
to June 30, 2024

16,301
15,492

15,445
11,790808

3,654

Selling, general and administrative expenses

2,220

2,388

Operating profit (loss)(1,411)

1,266

Non-operating profit
Interest income
Dividend income
Foreign exchange gains

135

179
523

308
468

Other

36

83

Total non-operating profit

753

866

77
111

111
79

Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other

1322

Total non-operating expenses

202

214

Ordinary profit (loss)

(859)

1,918

Extraordinary income
Gain on sale of investment securities

449-449-

25

26

Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses

2526

Profit (Loss) before income taxes

(436)

1,891

Income taxes payable

(166)

688

Profit (Loss)

(269)

1,203

Profit attributable to non-controlling interests

4037

Profit (Loss) attributable to owners of parent

(310)

1,165

-6-Consolidated statement of comprehensive income(Millions of yen)
From April 1, 2023
to June 30, 2023
Profit (Loss)
Other comprehensive income

From April 1, 2024
to June 30, 2024
(269)

1,203

346
(95)

470
495

Remeasurements of defined benefit plans

(4)

(17)

Total other comprehensive income

247

948

Comprehensive income

(22)

2,151

Comprehensive income attributable to:
Owners of parent

(91)

2,144

68

7

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Non-controlling interests-7-(3) Notes to the consolidated financial statements(Special accounting for preparing quarterly consolidated financial statements)
Tax expenses are calculated by multiplying profit before income taxes by the reasonably estimated effective tax rate after theapplication of tax effect accounting to profit before income taxes for the fiscal year ending March 31, 2025, including the firstquarter. However, in cases where calculating tax expenses using the estimated effective tax rate would significantly lackrationality, tax expenses are calculated using the statutory effective tax rate.
(Segment information)
I. From April 1, 2023 to June 30, 2023
1. Information on net sales, profit or loss by reportable segment(Millions of yen)

Reportable segment

Amountrecorded on theAdjustment
statement of(Note 1)
income(Note 2)

Fundamental
Chemicals

Fine
Chemicals

Ferrochemicals

CommercialBusiness(1) Net sales to externalcustomers

2,412

12,743448

17352316,301－

16,301(2) Inter-segment net sales
or transfers

－－

0416

827

1,243(1,243)－Total2,412

12,743

448

590

1,350

17,545(1,243)

16,30176(1,720)

4680

62(1,454)

42(1,411)

Facilities

Total

Net sales

Segment profit (loss)(Notes) 1. The segment profit (loss) adjustment of ¥42 million is elimination of inter-segment transactions.
2. Segment profit (loss) is adjusted with operating loss in the consolidated statement of income.
2. Information about impairment loss and goodwill on non-current assets by reportable segment
Not applicable.
II. From April 1, 2024 to June 30, 2024
1. Information on net sales, profit or loss by reportable segment(Millions of yen)

Reportable segment

Amountrecorded on theAdjustment
statement of(Note 1)
income(Note 2)

Fundamental
Chemicals

Fine
Chemicals

Ferrochemicals

CommercialBusiness(1) Net sales to externalcustomers

1,981

12,229

592

158

482

15,445－

15,445(2) Inter-segment net sales
or transfers

－－

0322

643

965(965)－Total

1,981

12,229

592

480

1,126

16,411(965)

15,445(316)

1,335

87

4394

1,243

221,266

Facilities

Total

Net sales

Segment profit (loss)(Notes) 1. The segment profit (loss) adjustment of ¥22 million is elimination of inter-segment transactions.
2. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
2. Information about impairment loss and goodwill on non-current assets by reportable segment
Not applicable.

-8-

(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Notes on premise of going concern)
Not applicable.
(Notes on statement of cash flows)
A quarterly consolidated cash flow statement for the first quarter has not been prepared. Depreciation expenses (including
amortization expenses related to intangible assets) for the first quarter are as follows.
From April 1, 2023 to June 30, 2023
Depreciation¥1,965 million-9-

From April 1, 2024 to June 30, 2024
¥1,981 million