FY2019 Financial Results Presentation Summary(Held on May 13, 2020)(1) Overview of FY2019 Financial Results (year-on-year changes)(Billions of yen)

380.8 (-32.3)① Net sales:

Decrease in sales volume (-16.1)
Differences in sales prices (-16.3)② Operating income:

31.6(-2.6)

Decrease in sales volume (-5.9):

Chloroprene rubber (CR), etc. (-4.9)
Impact of the novel coronavirus pandemic (-1.0)

Improvement in spread(+6.2): Increases in sales prices (+20.1)
Increases in raw material prices, etc. (-13.9)

Effect of foreign exchange (-0.9): Sales prices (-2.3)
Raw material prices, etc. (+1.5)
Other cost elements(-1.6): Absence of periodic shutdown maintenance (SDM) ofstyrene monomer (SM) plant (+1.4)
Absence of damage previously incurred by Denka
Performance Elastomer (DPE) in the United States due
to cold wave and the restoration of the Omi Plant’shydroelectric power generation output (+1.6)
Other administrative and manufacturing costs (-4.6):
Personnel system reforms and IT development, etc.

Forward-looking
investments, etc. (-0.5): Rise in R&D expenses, etc.
--------------------------------------------------------------------------------(-0.6)

Net decrease due to factors listed above① Net sales decreased due to lower CR sales, which reflected a decline in demand, and the downward
revisions of sales prices of styrene-based products in step with plunges in raw material prices.
② Operating income fell due to the lower sales volume, reflecting the impact of U.S.-China trade
friction, which caused demand for CR and other products to decrease significantly, as well as thefallout from the global novel coronavirus pandemic. However, earnings from such specialty
businesses as xEV-related products, influenza vaccines and diagnostic reagents remained stable.

Denka Co., Ltd.

(2) Full-Year Operating Results Forecasts for FY2020 (year-on-year changes)(Billions of yen)
① Net sales:

360.0(-20.8) Growth in sales volume (+3.5)
Differences in sales prices (-24.3)② Operating income: 31.0
Growth in sales volume(-0.6)(+3.9): Electronics & Innovative Products, etc. (+8.9)
Impact of the novel coronavirus pandemic (-5.0)(Expected overall impact for FY2020: -\-6.0 billion)

Changes in spread(-1.5):

Decreases in raw material prices (+22.7)
Decreases in sales prices (-24.2)

Effect of foreign exchange (-0.0): Sales prices (-0.1)
Raw material prices, etc. (+0.1)
Other cost elements(-2.0): Other administrative and manufacturing costs

Forward-looking
investments, etc. (-1.0): Rise in R&D expenses--------------------------------------------------------------------------------(-0.6)

Net decrease due to factors listed above① Net sales: A decline in styrene-based product prices, which reflects the weakening of market
demand for raw materials, is expected to have a major negative impact on sales.
② Operating income: Regarding sales volume, it is anticipated that, after the novel coronavirus

pandemic comes to an end, sales of Electronics & Innovative Products will grow in a manner thatexceeds the sales decrease attributable to the pandemic. Regarding costs, however, spending on
R&D and other forward-looking investments in such fields as healthcare is expected to increase.
③ The above forecasts are formulated based on the assumption that the effect of the novel

coronavirus pandemic will gradually taper off from the second quarter onward and economic
activity will be largely normalized sometime in the third quarter. However, we are refraining fromdisclosing operating results forecasts for the first six months of FY2020 as the magnitude of thefallout from the pandemic may significantly differ from our projections.

(3) Shareholder Returns
・ Policy on shareholder returns under the Denka Value-Up management plan: Remain committed toa targeted total shareholder return ratio of 50%; place stronger focus on cash dividends; andflexibly execute share repurchases
Dividends per share for fiscal 2019:・ Interim: \60; year-end: \65; full-year: \125 (dividend payout ratio: 48%)
Forecasts for dividends per share for fiscal 2020:
・ Our forecasts for dividends per share for fiscal 2020 have not been determined as our operating
results may significantly fluctuate due to the impact of the novel coronavirus pandemic. However,
our policy of working to achieve a total shareholder return ratio of 50% remains unchanged.

Denka Co., Ltd.

(4) Key Themes for Our Specialty Business Initiatives under Denka
Value-Up① Contribution to countermeasures against the novel coronavirus
・Develop rapid test kits for the novel coronavirus (antigen/antibody detection employing theimmunochromato-method)・

Developmeasures

fortestingthediseaseotherthanthoseusing

theimmunochromato-method (incorporate R&D findings from Taiwanese and U.S. facilities toJapan by acting in collaboration with PlexBio, in which Denka holds a 33.4% equity stake)・Provide raw material for AviganⓇ (diethyl malonate)・

Launch basic research with an eye to developing a vaccine for the disease・

Expand CR marketing to supply medical glove materials

New businesses in the healthcare field②

・Commercialize the G47Δ oncolytic virus

・Promote CANCERPLEXⓇ, a genome-based panel examination method for cancer diagnosis

・Developpanel

examination

methods

anddiagnostic

devices

todetectpathogenic

microorganisms and drug resistant bacteria genes
・③

Develop norovirus vaccines (phase I clinical testing started in Europe)

New products to be delivered in response to needs arising from megatrends in the field of theenvironment and energy
・Expand our capacity to supply xEV-related products (spherical alumina, ultra-pure acetylene
black and ceramics-based electronic circuit substrates)

・Develop and release new products designed to meet needs associated with the introduction of
the 5G communications infrastructure and the emergence of “CASE” next-generation
automobile technologies (LCP films, high dielectric constant fillers and low dielectric loss tangent
fillers)（5）Summary of Q&A Sessions
About Forecasts of FY2020① Impact of the novel coronavirus pandemic
・On the earnings front, the impact is expected to total a negative \6.0 billion due to a decline insales volume. Approximately half of this amount will be attributable to a demand decline in suchfields as automobiles, home appliances and PET bottles in Elastomers & Performance Plastics. And
we can also expect Electronics & Innovative Products to be affected and also believe that, although
the outlook remains unclear, Life Innovation will also be impacted due to a decrease in the numberof people undergoing annual health checkups.

・On the other hand, we anticipate that the pandemic-related suspension of construction projects
will not affect Infrastructure & Social Solutions in a major way.

・With regard to capital expenditures now under way at domestic and overseas, although thepandemic may force us to delay the operational kick off of some facilities for two or three months,
we will do our best to steadily push ahead with these projects as initially planned.

Denka Co., Ltd.

② Outlook for the CR business・We forecast that the CR business will be negatively affected as users in the U.S. and Europe are
currently suspending their facility operations or engaged in only partial facility operations. However,
we anticipate a gradual uptick in demand from the second half onward.

・Although the business environment surrounding CR remains harsh, our policy of maintaining CR
sales prices is unchanged as is its positioning as a functional elastomer.

・The status of DPE-related litigation is unchanged from that described in the press release andstatement publicized on February 14, 2020. Since the acquisition of its facilities by Denka, DPE has
maintained compliance with emission-related legal regulations and standards in the course of itsoperations. Moreover, DPE succeeded in reducing the volume of environmental load substances
emitted from its facilities by 85% via the execution of an approximately 4.0 billion yen investment.
In addition, epidemiological research carried out targeting communities surrounding DPE facilities
suggested no abnormality. Also, key statistical surveys conducted by the state government
revealed no region-specific outlier. Currently, DPE is engaged in discussions with the U.S.
Environmental Protection Agency (EPA) regarding chloroprene monomer toxicity assessments.
References: Press releases publicized by Denka to describe its relevant initiatives“Review of Chloroprene Monomer Toxicity Assessment Performed by the U.S. Environmental
Protection Agency” (dated February 14, 2020)"“Statement regarding NATA’s Toxicity Assessments on the Areas Surrounding Denka’s U.S.
Subsidiary and Initiatives Being Undertaken to Reduce Environmental Burden” (dated June 19,2019)③ Factors behind expected profit growth in Infrastructure & Social Solutions
・We anticipate progress in our ongoing efforts to develop new applications for special cement
additives at domestic and overseas while expecting a number of new businesses in this field to geton track

・

Other positive factors contributing to profit include our recent success in upwardly revising thesales prices of cement, agri-products and other offerings and the resulting improvement inprofitability.

④ Outlook on demand for Electronics & Innovative Products
・

While the novel coronavirus pandemic will continue to impact operations in the first half, we
anticipate growth in demand from the second half onward in such fields as xEV-related products,
one of our product categories supported by a megatrend, as well as 5G- and robotics-related
offerings. Although the sales growth these products have previously enjoyed has mainly been in
Europe and the United States, we expect that, going forward, they will also see a significant risein the Chinese market. At present, we are not open to inducing a boost in their sales volume via
downward price revisions. In addition, we assume that an ongoing megatrend driving thepopularization of xEVs will not be significantly affected by plunges in crude oil prices.

・We expect a rise in sales of spherical alumina for thermal materials particularly due to a growing
need related to 5G communication infrastructure base stations in addition to needs in the area ofxEV-related applications.

・We also expect growth in demand for ultra-pure acetylene black for use in high-voltage cables used
in offshore power generation and transmission and anticipate a continued rise in demand for
ultra-pure acetylene black for lithium ion battery (LiB) use amid the popularization of xEVs. We are
currently engaged in negotiations aimed at upwardly revising product prices on the back ofburgeoning demand.

Denka Co., Ltd.

➄ Initiatives Under Way in Connection with Life Innovation
・Although we expect sales of diagnostic reagents to grow, we forecast that profit from Life
Innovation will remain unchanged from the previous fiscal year due to an expected rise in spending
on R&D and other forward-looking investments.

・Our plans call for resuming the manufacture of diethyl malonate, the raw material for AviganⓇ, tosupport the production of medicine for approximately 2 million patients in response to agovernment request. Currently, we have no other shipment plans for this material. The supply ofdiethyl malonate is part of our social responsibilities. Although we also expect to be granted
government subsidies for this move, its impact on our FY2020 profit is insignificant.

・In Life Innovation, we have placed the utmost priority on the development of a rapid test kit for
detecting novel coronavirus antigen. Despite the initial development schedule calling for obtaining
government approval and launching marketing by the end of 2020, we are currently striving tosignificantly accelerate this project while studying actual cases of fast-tracked approval granted formedicines created by other pharmaceutical companies. In addition, the impact of the developmentof this rapid test kit has not been factored into our operating results forecasts due to uncertainty
about future demand.

* Avigan is a registered trade name of FUJIFILM Toyama Chemical Co., Ltd.
* CANCERPLEX is a registered trade name of KEW, Inc.

Denka Co., Ltd.