FY2022 3Q Financial Results Presentation
Summary of Q&A Session(February 7, 2023)

Revision to Dividend Forecasts
Q1: Denka’s announcement of a downward revision to its dividend forecasts for fiscal 2022 musthave profoundly affected its stock price. Was this revision really necessary? Considering theoutlook for fiscal 2023, might not this decision have been avoidable?
A1: In addition to downwardly revising our fiscal 2022 profit forecast to a considerable extent, inlight of such factors as the investment plan stipulated under “Mission 2030,” a new managementplan to be launched in fiscal 2023, we have decided to downwardly revise our dividend forecasts.
The new plan’s investment budget will be twice as large as that of the current “Denka Value-Up”
management plan. Despite this decision, we will remain committed to achieving a total
shareholder return ratio of 50%, the target set for the five-year period of “Denka Value-Up.”In fiscal 2023, we intend to restore our business performance to a growth track and areaiming for yet another record-high profit while also strictly maintaining our total shareholder
return ratio at 50%.
Electronics & Innovative Products
Q2: Please describe the sales status of acetylene black, spherical alumina and spherical fusedsilica for fiscal 2022 as well as the demand outlook for these products for fiscal 2023.
A2: With regard to acetylene black, demand for EV-related products declined in the first quarterbut returned to a recovery track from July 2022. Demand for acetylene black for use in highvoltage transmission cables remains robust.
As for spherical alumina, demand for EV-related products similarly declined in the firstquarter but began recovering from July 2022. Demand for spherical alumina for use in consumersector products, however, has been declining since October 2022 and the outlook for the fourth
quarter remains harsh.
Although demand for spherical fused silica for use as semiconductor encapsulant fillers
remained strong in the first half, it has been dropping since October 2022. The outlook for theseofferings for the fourth quarter remains harsh.
However, demand for both EV-related and consumer-sector products is expected togradually recover over the first half of fiscal 2023. In terms of the full-year forecast, we anticipate
that the demand environment will be more favorable than in fiscal 2022.

Denka Co., Ltd.

Q3: Looking at three key applications for silicon nitride (heat-dissipating substrates for EV
inverters, bearing balls for offshore wind power generators and bearing balls for EV traction
motors), which do you think is the most promising field in terms of future growth in demand?
A3: Among these applications, we have greatest expectations for heat-dissipating substrates for
EV inverters. Demand has grown in step with the expansion of the EV market. In this field, Denka
commands a strong market share of 90%. We also consider bearing balls for EV traction motors
to be another promising field. Demand is on a growth track due to a switchover now under way
from steel bearings to ceramic bearings.
Q4: With regard to applications for emitters, in what fields do you currently see growth indemand?
A4: Although our emitters’ original application was as electron beam emitting components inelectron microscopes, demand has been expanding with the use of multi beams in semiconductor
device manufacturing in recent years.
Life Innovation
Q5: It was reported that the usage of influenza vaccines marketed thus far remains sluggish.
What is your outlook for fiscal 2023?
A5: Influenza infections have been widespread in fiscal 2022. In fiscal 2023, we expect to be able
to deliver vaccine supplies to the market earlier than in fiscal 2022 so that we can secure an evenlarger market share. Taking these and other factors into account, we anticipate that the usage
rate of Denka’s influenza vaccines will improve.
Q6: Please describe your fiscal 2023 outlook for rapid test kits for COVID-19 antigens.
A6: We anticipate that the sales volume of these test kits will decline somewhat in fiscal 2023. At
the current moment, however, it is hard to assume that COVID-19 will disappear. We expect
demand associated with COVID-19 testing undertaken by medical institutions to remain ongoing.
Q7: Could you provide rationales for Denka’s projection that the sales volume of the DELYTACT(G47Δ) Oncolytic Virus can be increased in fiscal 2023?
A7: Although our supply capacity has yet to catch up with growing demand, we are planning tostrengthen our DELYTACT supply structure.

Denka Co., Ltd.

Elastomers & Infrastructure Solutions
Q8: We have just been updated about a considerable decline in demand for chloroprene rubber(CR). As a top-tier CR maker, what strategies Denka has in mind to balance sales prices and sales
volumes?
A8: While there remains a scarcity of CR suppliers, a growing volume of CR is being held up in
the form of inventory at user companies due mainly to the recent disruption of logistics networks.
Now, although said disruption has largely subsided, the deceleration of global economic growthcaused CR demand to decline in step. This, in turn, resulted in a radical decrease in CR sales
volumes starting from October 2022. Thus, even though inventory adjustment will require acertain period of time, we expect CR demand to gradually recover from June 2023. With regard
to CR sales prices, we have been acting as a price leader and thus promoted upward pricerevisions. Despite this, Denka’s CR market share has not declined. Accordingly, we intend tomaintain CR sales prices at a level commensurate with product value.
Polymer Solutions
Q9: Denka’s full-year operating income forecast amounts to \1.0 billion. To meet this forecast,
the Company must secure a significantly larger volume of profit than before in the fourth quarter.
Do you think it’s possible?
A9: Denka’s Singapore-based subsidiary, which plays a large role in Polymer Solutions, closes its
fiscal year on December 31. With this in mind, the aforementioned forecast factors in a certain
amount of profit that has already been realized by this subsidiary. In addition, demand for MS
resin for use in light guiding substrates for televisions and monitors has rapidly recovered since
December 2022. Furthermore, we anticipate fourth-quarter recovery in demand for resin products
manufactured by the Chiba Plant.

Denka Co., Ltd.