Aug 7th, 2018

Summary of Consolidated Financial Results
Denka company Limited
1. Summary
1.1 Progress toward forecasts
In the 1st quarter, operating income was 6.9 billion yen, 0.5 billion higher YOY by sales price revisions corresponding torising raw material price and increased shipment of electronics & innovative products, although the cost of R & D increased
mainly in the healthcare field. Ordinary income of this quarter 8.0 billion yen and net income 6.2 billion yen, both are higher
YOY and highest ever in the 1st quarter.
We estimate our operating income of 1st half 14.0 billion yen, and that of 2nd half 22.0 billion yen by strong sales ofelectronics & innovative products and flu vaccines, diagnostic reagents despite the cost of shutdown maintenance of styrene
monomer plant. We are striving to brake a record for two years in a row by achieving full year forecast operating income of
36.0 billion yen.

1.2 The result 1st quarter and the forecast in each segment
Elastomers & Performance Plastics : Earnings were higher YOY, because selling price revision advanced, and sales ofABS, polystyrene and MS of Denka Singapore Pte.Ltd. also performed well, although earnings of the US subsidiary Denka
Performance Elastomer Co., Ltd. declined due decrease of production because of cold weather at the beginning of this year.
In the second quarter, because of shutdown maintenance of styrene monomer plant operating income will decrease.
The Infrastructure & Social Solutions : Earnings were lower YOY, because fertilizer sales fell below the previous year's
level in addition to prices hiking of raw material and fuel, although sales volume of underground drainpipes for agriculture andcivil engineering, and that of refractory materials for steel mill increased, and sales of cement and special cement additives
kept steady. After the second quarter, we expect strong sales and price revisions of special cement additives and otherproducts, therefore the profit will increase.
Electronics & Innovative Products : Earnings were the same level as previous year, because sales volume of high thermal
conductivity substrates, highly-reliable thermally conductive plates "DENKA ALSINK" and high purity conductive carbon blackincreased, and sales of functional films, fused silica filler and spherical alumina also performed well, although sales ofSiAlON phosphors "ALONBRIGHT" fell below the previous year, and labour costs and other fixed costs increased for theproduction expansion. After the second quarter, we expect to increase the profits by continuing strong shipment of theseproducts above.
Living & Environmental Products : Earning were lower YOY. Because shipment of films for solar cells "DX film" fell below
the previous year in addition to rising raw material prices, however the sales volume of industrial tapes increased, and thesales of functional sheets for food container and the products of Denka Polymer Co., Ltd. remained steady, and sales of PVC
fiber for wig " TOYOKALON " were largely in line with the previous year. In the second quarter, we estimate earnings will belower YOY due to the impact of the decline in sales of "DX film".
Life Innovation : Although sales of reagents increased in domestic and export, earnings were lower YOY due to increase inburdens of upfront investment such as R & D. In fiscal year 2018, we forecast earnings will be in line with our previousforecast due to the contribution sales of influenza vaccines and diagnostic kits as planned.

Billions of Yen

1.3 Consolidated Financial Results and Forecast
FY2018
1st Quarter
Apr to Jun

Net Sales
Operating Income
Ordinary Income
Net Income

FY2017
1st Quarter
Apr to Jun

94.0
6.9
8.0
6.2

FY2018
Forecast
Apr to Sep

Incｒ.
△Decr.

90.6
6.4
7.4
6.0

3.4
0.5
0.6
0.2

195.0
14.0
13.0
10.0

Elastomers ＆Performance
Plastics

Operating Income

Infrastructure ＆Social Solutions

Operating Income

Electronics ＆Innovative Products

Operating Income

Living ＆Environment
Products

Operating Income

Life innovation
Others/Companywide

Total

Sales
Sales
Sales
Sales
Sales
Operating Income

Sales
Operating Income

Sales
Operating Income

42.6
4.4
12.2
ᇞ 0.2
15.6
2.7
9.7
0.1
4.8
ᇞ 0.2
9.2
0.2
94.0
6.9

410.0
36.0
34.0
25.0
Billions of Yen

2. Net Sales and Operating Income by segments
FY2018
1st Quarter
Apr to Jun

FY2018
Forecast
Apr to Mar

FY2017
1st Quarter
Apr to Jun

40.7
2.8
12.4
0.3
14.7
2.8
10.3
0.4
4.6
ᇞ 0.0
8.0
0.2
90.6
6.4

Incr.
△Decr.

1.9
1.6
ᇞ 0.2
ᇞ 0.5
0.8
ᇞ 0.1
ᇞ 0.5
ᇞ 0.3
0.1
ᇞ 0.2
1.2
0.1
3.4
0.5

FY2018
Forecast
Apr to Sep

88.5
6.0
27.5
1.0
33.5
5.5
20.5
0.5
12.0
0.5
13.0
0.5
195.0
14.0

FY2018
Forecast
Apr to Mar

178.5
13.0
55.5
2.0
68.5
12.5
41.5
1.5
34.5
6.0
31.5
1.0
410.0
36.0