April 12, 2024
Denka Company Limited

Announcement of transfer of shares in acetylene gas affiliates to Koatsu Gas Kogyo Co., Ltd.
Denka Company Limited (Headquarters: Chuo-ku, Tokyo; Representative Director and President: Toshio Imai;“Denka” hereinafter) concluded today a contract on sale of all shares of stock it holds in its acetylene gas affiliates
Nishi-nihon Koatsu Gas Co.,Ltd., a consolidated subsidiary, Nishinihon Acetylene K.K., a nonconsolidated
subsidiary, and Higashinihon Koatsu K.K., an equity-method affiliate, to Koatsu Gas Kogyo Co., Ltd. (HeadOffice: Kita-ku, Osaka; President and Representative Director: Motonari Kuroki; “Koatsu Gas Kogyo” hereinafter),based on an agreement reached between Denka and Koatsu Gas Kogyo.
1. Purpose
Through now, Denka has invested in companies that manufacture and sell dissolved acetylene gas in order tosecure buyers of calcium carbide, a raw material used in dissolved acetylene gas. However, it has decided totransfer all shares of stock in the above companies based on its judgment that it would be optimal to future businessdevelopment for Koatsu Gas Kogyo, the largest manufacturer and seller of dissolved acetylene gas, to operate thethree companies.
Of the three companies, Higashinihon Koatsu K.K. is a joint venture between Denka, Koatsu Gas Kogyo, andother investors, while Nishinihon Acetylene K.K. is a joint venture established Denka, Koatsu Gas Kogyo, andNishi-nihon Koatsu Gas Co.,Ltd.
Moving forward, Denka will continue to accelerate its efforts to concentrate on businesses that embody the threeelements of its specialties, megatrends, and sustainability, as it aims to achieve its Mission 2030 management plan.
2. Overview of the companies whose stock will be sold(1) Nishi-nihon Koatsu Gas Co.,Ltd. (as of March 31, 2024)(1) Name

Nishi-nihon Koatsu Gas Co.,Ltd.

(2) Head Office(3) Name and title of representative(4) Lines of business

4-16 Komondomachi, Hakata-ku, Fukuoka, Fukuoka Prefecture
Akinori Kimata, Representative Director and President
Manufacture and sale of dissolved acetylene gas
Sale of various high-pressure gases and welding materials andmachinery
Inspection and engineering of LPG containers and storage
facilities
80 million yen
March 5, 1953

(5) Capital(6) Date established(7) Number and percentage of shares
owned by Denka(8) Category

160,000 (100.00%)
Consolidated subsidiary(2) Nishinihon Acetylene K.K. (as of March 31, 2024)(1) Name
Nishinihon Acetylene K.K.
(2) Head Office1-14 Anse, Wakamatsu-ku, Kitakyushu, Fukuoka Prefecture(3) Name and title of representative
Akinori Kimata, Representative Director and President(4) Lines of business
Manufacture and sale of dissolved acetylene gas
Sale of calcium hydroxide, a byproduct of manufacture ofdissolved acetylene gas(5) Capital
30 million yen(6) Date established

June 12, 2018(7) Number and percentage of shares
owned by Denka(8) Category

Nishi-nihon Koatsu Gas Co.,Ltd.: 300 (50.00%); Denka: 60(10.00%)
Nonconsolidated subsidiary(3) Higashinihon Koatsu K.K. (as of March 31, 2024)(1) Name
Higashinihon Koatsu K.K.
(2) Head Office
1-2-1 Uchisaiwaicho, Chiyoda-ku, Tokyo(3) Name and title of representative
Motonari Kuroki, Representative Director and President(4) Lines of business
Manufacture and sale of dissolved acetylene gas
Sale of other high-pressure gases and machinery(5) Capital(6) Date established(7) Number and percentage of shares
owned by Denka

95.67 million yen
December 2, 1967
59,600 (43.73%)(8) Category

Equity-method affiliate

3. Overview of transaction counterparty (as of September 30, 2023)(1) Name
Koatsu Gas Kogyo Co., Ltd.
(2) Head Office2-4-12, Nakazaki-Nishi, Kita-ku, Osaka, Osaka Prefecture(3) Name and title of representative
Motonari Kuroki, President and Representative Director(4) Lines of business
Manufacture and sale of dissolved acetylene gas
Sale of other high-pressure gases and machinery, etc.
(5) Capital
2.885 billion yen(6) Date established
June 26, 1958
(7) Major shareholders
percentages of shares held

(8) Relationship to Denka

andtheirKoatsu Kyoeikai: 13.75%; Denka: 12.51%; The Kyoei Fire andMarine Insurance Company, Limited: 7.25%; The Master Trust
Bank of Japan, Ltd. (trust account): 6.47%; Nippon Sanso
Holdings Corporation: 5.69%
A major customer for Denka’s product of calcium carbide

4. Future plans
Plans call for the transfer of shares to be complete on June 28, 2024.
This transfer of shares will have only a minor effect on Denka’s consolidated financial results.

[For Inquiries about This press Release from Media]
Corporate Communications Dept. （Tel.:+81-3-5290-5511）【Contact for Inquiries from customers】
Agri-Products Department, Elastomers & Infrastructure Solutions(Tel.: +81-3-5290-5557)