January 13, 2023
Denka Company Limited

Notice Regarding Revisions to Consolidated Financial Results Forecast and Year-end
Dividend Forecast for the Fiscal Year Ending March 31, 2023
Denka Company Limited (hereinafter the “Company”) hereby announces that in view of recent businessperformance trends and other factors, the following revisions have been made to the consolidated financial results
forecast and year-end dividend forecast for the fiscal year ending March 31, 2023 that the Company released on
November 8, 2022.
１．Revision to financial results forecast(1) Revision to consolidated financial results forecast for the fiscal year ending March 31, 2023
(April 1, 2022 through March 31, 2023)
Net sales

Operating O r d i n a r yi n c o m e i n c o m e

Net income
attributable toowners of parent

Net income
per share

Million yen

Million yen

Million yen

Million yen

Yen

445,000

43,00039,00018,500214.54

Revised forecast (B)410,000

33,00029,00012,000139.16

Change (B - A)

-35,000-10,000-10,000-6,500C h a n g e-7.9％-23.3％-25.6％-35.1％

384,849

40,12336,47426,012Previous forecast (A)( % )(Reference)
Consolidated results forthe previous fiscal year

301.67(Year ended March 31,2022)(2) Reasons for revision of results forecast
Demand for electronics & innovative products, chloroprene rubber and other mainstay products dropped sharply
due to the rapid weakening of the global economy. The Company has made the revisions as described above,
because it is inevitable that both net sales and income will fall substantially below previous forecasts, despite
efforts to achieve cost savings and other initiatives to generate profits.

1(Additional information)
Full-year results forecast by segment for the fiscal year ending March 31, 2023
(Million yen)Previous

RevisedChange (B -forecast (A)forecast (B)A)

Electronics &Net sales

105,000

95,000-10,000

Innovative Products

Operating

21,50017,500-4,000Net sales

50,00050,000－Operating

13,00014,0001,000

incomeLife Innovation

incomeElastomers &Net sales

140,000

125,000-15,000

Infrastructure Solutions

Operating

3,500-1,500-5,000Net sales

135,000

125,000-10,000

Operating

2,500

1,000

-1,500Net sales

15,00015,000－Operating

2,500

2,000

-500

Net sales

445,000

410,000-35,000

Operating

43,00033,000-10,000

incomePolymer Solutions

incomeOthersincomeTotalincome
2. Revision to dividend forecast(1) Details of revision to year-end dividend forecast
Annual dividend (yen)End of first sixmonths
Previous forecast

70.00 yen

Revised forecast
Results for current period

Year-end

Total

75.00 yen

145.00 yen

30.00 yen

100.00 yen

75.00 yen

145.00 yen

70.00 yen

Results for previous period(fiscal year ended March 31,70.00 yen

2022)(2) Reasons for revision
Under the management plan “Denka Value-Up,” the Company attaches importance to dividend paymentsbased on a total return ratio of 50% while flexibly carrying out treasury stock purchases based on share price2performance, etc.
As described above, however, a substantial decline in income is inevitable, and with sincere regret, theCompany will reduce the year-end dividend to 30 yen per share and revise its annual dividend forecast to 100yen, compared to 145 yen under the previous forecast.
As a result, the cumulative total return ratio for the five-year period under the management plan “Denka ValueUp” (FY2018-FY2022) will be 50.9%.
Total return ratio for the period under Denka Value-Up (FY2018-FY2022)
ActualActualActualActualForecast

Cumulative

results inresults inresults inresults infor

total

FY2018FY2019FY2020

FY2021

FY2022Million yen

Million yen

Million yen

Million yen

Million yen

Million yen

owners of parent

25,04622,70322,78526,012

12,000108,547

Total return

12,57910,785

10,785

12,5108,627

55,287

Dividend

10,47910,785

10,785

12,5108,627

53,187

Acquisition of

2,099－－－－

2,099

50.2％

47.6％

47.3％

48.1％

71.9％

50.9％

Net incomeattributable totreasury stock
Total return ratio(Note) The above forecasts are based on information available to the Company at the time of the publication ofthis document and certain assumptions that the Company considers to be reasonable and may differ fromthe actual results due to various factors in the future.

3