FY2022 Financial Results Presentation
Summary of Q&A Session(May 11, 2023)

Electronics & Innovative Products
Q1: (Slide 16) Fiscal 2023 operating results forecasts for this segment include a negative \7.1
billion difference in costs compared with the previous fiscal year. Could you break down thesecosts?
A1: We have been undertaking strategic investment based on our growth strategies. This resulted
in an increase in depreciation costs. In step with this move, we have also seen growth in laborand other costs associated with the development of a higher capacity production structure. Also,
as of the end of fiscal 2022 we had strategically secured a larger than usual volume of inventories
in anticipation of demand recovery in fiscal 2023. The higher volume of inventories is similarly
expected to lead to a cost increase.
Q2: Please describe the status of acetylene black for the cathode conductive agents for LiBs interms of competition against carbon nanotube products.
A2: Automakers seem to base their choice of one or the other based on vehicle and battery type.
We believe that our acetylene black can maintain a certain volume of market share on the backof the robust expansion of the EV market.
Life Innovation
Q3: (Slide 18) Fiscal 2023 operating results forecasts for this segment include a negative \3.0
billion difference in costs compared with the previous fiscal year. Could you break down thesecosts?
A3: Our plans call for a strategic approach with regard to allocating research expenses. These
expenses will account for the most of cost growth.
Q4: Isn’t there a possibility of downturn in sales of COVID-19 antigen test kits vis-à-vis their salesforecasts?
A4: We have been formulating our sales forecasts based on an assumption that COVID-19
outbreaks will occur about twice a year. That being said, there is no way to precisely predict thecourse or severity of an outbreak.
On the other hand, the effectiveness of antigen test kits is now widely recognized among
healthcare institutions. Moreover, in line with the reclassification of this disease to Class 5 underthe Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious
Diseases, Japan’s Ministry of Health, Labour and Welfare has adopted a policy that permits agrowing number of healthcare institutions to accept COVID-19 patients. Accordingly, inspectionrelated demand is likely to grow among healthcare institutions. Our sales in this field are strong.

Denka Co., Ltd.

Also, in the fiscal 2022 influenza season, we saw a considerable increase in the numberof influenza patients, albeit fewer than recorded in the pre-COVID-19 pandemic period. Theoutbreak of influenza is still ongoing in some regions. We therefore believe that demand for combo
kits capable of simultaneous testing for COVID-19 and influenza may well expand.
Taking the aforementioned factors into account, we anticipate that shipment volumes will
be fairly robust, even though sales trends could be affected by the actual courses taken byoutbreaks.
Elastomers & Infrastructure Solutions
Q5: Assumptions for fiscal 2023 operating results forecasts include the maintenance ofchloroprene rubber (CR) prices at the current levels. Is that possible?
A5: In fiscal 2022, we upwardly revised CR prices at a considerable pace. For fiscal 2023, oursales policy is to maintain prices around the revised levels.
Polymer Solutions
Q6: For Polymer Solutions, Denka had set its fiscal 2022 operating results forecast as of February
2023 at a profit of \1.0 billion. However, the actual operating results turned out to be a loss of\1.2 billion. Could you explain the factors that over the course of a couple of months or so led tothis considerable divergence from forecasts?
A6: Previously, our plans had factored in demand recovery for various resin products
manufactured by the Chiba Plant. We had expected this recovery to occur in March 2023 followingthe Lunar New Year; however, the actual pace of recovery turned out to be slower than predicted.
Furthermore, raw material prices were higher than expected through to the end of the period.
We were able to reflect surging raw material prices to our sales prices only after fiscal 2023 began.
This is why operating results for this segment fell short of our forecasts.
ROIC by Segment
Q7: (Slide 21) Regarding ROIC by segment, ROIC for Electronics & Innovative Products and Life
Innovation is relatively higher than the segment average while that for Polymer Solutions andElastomers & Infrastructure Solutions is relatively lower. In light of Denka’s goal of achieving an
ROIC of 10% or more by 2030, what are your thoughts on the aforementioned ROIC status ofeach segment?
A7: We have been able to earn a robust profit in Electronics & Innovative Products and Life
Innovation, both of which constitute priority fields, and thus maintained a high level of ROIC. On
the other hand, Polymer Solutions and Elastomers & Infrastructure Solutions have been affectedby delays in specialization during the period of the previous Denka Value-Up management plan.
Under Mission2030, our current management plan, we will boldly replace our portfolio of lowROIC businesses that lack viable roadmaps for improvement.

Denka Co., Ltd.