Financial Results Presentation Materials for the Fiscal Year Ending March 2026 | KANTO DENKA KOGYO CO.,LTD. (4047) timely disclosure

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Contents of this document

Financial results presentationFiscal year ending March 202611 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥654 100 million+4.9%

Operating profit¥54 100 million+28.2%

Ordinary income¥66 100 million+47.1%

Net income¥37 100 million+16.5%

Results for the three months of the current quarterQuarterly standalone results by segment: revenue for the Iron, Trading and Equipment segment was ¥1.30 billion in Q1, ¥1.23 billion in Q2, ¥1.29 billion in Q3 and ¥1.20 billion in Q4 of the fiscal year ending March 2026; operating income was ¥160 million in Q1, ¥160 million in Q2, ¥100 million in Q3 and ¥100 million in Q4.

Full-year earnings forecast

Net Sales¥95.0 billion

Operating profit¥10.0 billion

Ordinary income¥10.0 billion

Profit attributable to owners of the parent¥6.8 billion

Earnings per share¥118.56

Exchange rate¥155/dollar

Capital expenditures¥6.4 billion

Depreciation and amortization¥9.8 billion

Research and development costs¥2.4 billion

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Sales and production factors: △¥1.42 billion
Reclassification to extraordinary losses: +¥790 million
Fixed costs: △¥680 million
Subsidiaries: △¥120 million
Consolidation adjustments: +¥200 million
Inventory valuation loss in the previous year: △¥1.13 billion; current year: ¥340 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

An exchange rate of ¥155/USD, higher specialty-gas sales volumes driven by growth in semiconductor demand, increased new demand for battery materials mainly in the United States, and price pass-through to reflect higher raw-material and fuel prices.

New initiatives

Expansion of specialty-gas production facilities at the Shibukawa and Mizushima plants
Production expansion, broader product range and new-product launches at the Korean plant
Full-scale operation of the Chinese plant and start of sales to Japan
Building a de-China supply chain for LiPF6 and promoting recycling
Construction of a lithium-ion secondary battery recycling plant
Construction of facilities for new additives and start of sales
Supply of perfluorocarbons for intestinal ventilation technology
Development of high-refractive-index materials

Key KPIsA metric the company considers important as a management benchmark.

Semiconductor etching and cleaning gas market size (2024)¥2,300 100 million
Semiconductor etching and cleaning gas market size (2030)¥3,600 100 million
CAGR of the Company's specialty-gas business (2024–2030)11 %
Average growth rate of the specialty-gas market7.2 %
LiPF6 market size in the United States and Japan (2030)50,000 t
The Company's target LiPF6 market share (2030)50 %

Unit price and quantity metricsThese figures show sales broken down by price and volume.

For specialty gases, battery materials and each product, the direction of changes in sales volumes and unit prices is indicated, but specific volume and unit-price figures are not disclosed.

Segment results

Basic Chemicals segment
Net Sales¥8 billion
Year on year against the same period last year¥600 million increase in operating income
Operating profit¥100 million
Fine Chemicals segment
Net Sales¥52.5 billion
Year on year against the same period last year¥900 million increase in operating income
Operating profit¥4.9 billion
Iron, Trading and Equipment Segment (including consolidation adjustments)
Net Sales¥4.8 billion
Year on year against the same period last year¥300 million decrease in operating income
Operating profit¥400 million

Medium-term management plan targets

The achievement rate for the medium-term management plan's final-year revenue target is expected to be 95%. Specialty gases are expected to exceed the plan, while battery materials are expected to fall short. The target amount itself is not disclosed.

Financial targets

The equity ratio was 55.1% at the end of March 2026, compared with 53.4% a year earlier. The financial target is not disclosed.

Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.

Not disclosed. The potential surge in raw-material prices resulting from heightened tensions in the Middle East has been incorporated within a reasonably foreseeable range.

Market Size / Share

The semiconductor etching and cleaning gas market is expected to grow from ¥230 billion in 2024 to ¥360 billion in 2030. The Company's target market share in 2030 is at least 25%. The LiPF6 market in the United States and Japan is expected to reach 50,000t in 2030, with the Company's target market share at 50%.

Capital expenditures

¥68 100 million

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	Fiscal year ending March 2026
Net Sales	¥654 100 million (YoY +4.9%)
Operating profit	¥54 100 million (YoY +28.2%)
Ordinary income	¥66 100 million (YoY +47.1%)
Net income	¥37 100 million (YoY +16.5%)
Results for the three months of the current quarter	Quarterly standalone results by segment: revenue for the Iron, Trading and Equipment segment was ¥1.30 billion in Q1, ¥1.23 billion in Q2, ¥1.29 billion in Q3 and ¥1.20 billion in Q4 of the fiscal year ending March 2026; operating income was ¥160 million in Q1, ¥160 million in Q2, ¥100 million in Q3 and ¥100 million in Q4.
Full-year earnings forecast	Net Sales ¥95.0 billion / Operating profit ¥10.0 billion / Ordinary income ¥10.0 billion / Profit attributable to owners of the parent ¥6.8 billion / Earnings per share ¥118.56 / Exchange rate ¥155/dollar / Capital expenditures ¥6.4 billion / Depreciation and amortization ¥9.8 billion / Research and development costs ¥2.4 billion
Segment results	Segment Basic Chemicals segment / Net Sales ¥8 billion / Year on year against the same period last year ¥600 million increase in operating income / Operating profit ¥100 million, Segment Fine Chemicals segment / Net Sales ¥52.5 billion / Year on year against the same period last year ¥900 million increase in operating income / Operating profit ¥4.9 billion, Segment Iron, Trading and Equipment Segment (including consolidation adjustments) / Net Sales ¥4.8 billion / Year on year against the same period last year ¥300 million decrease in operating income / Operating profit ¥400 million
Breakdown of Factors Affecting the Change	Sales and production factors: △¥1.42 billion, Reclassification to extraordinary losses: +¥790 million, Fixed costs: △¥680 million, Subsidiaries: △¥120 million, Consolidation adjustments: +¥200 million, Inventory valuation loss in the previous year: △¥1.13 billion; current year: ¥340 million
Key KPIs	Indicator Semiconductor etching and cleaning gas market size (2024) / Value ¥2,300 100 million / Year on year against the same period last year Not disclosed, Indicator Semiconductor etching and cleaning gas market size (2030) / Value ¥3,600 100 million / Year on year against the same period last year Not disclosed, Indicator CAGR of the Company's specialty-gas business (2024–2030) / Value 11 % / Year on year against the same period last year Not disclosed, Indicator Average growth rate of the specialty-gas market / Value 7.2 % / Year on year against the same period last year Not disclosed, Indicator LiPF6 market size in the United States and Japan (2030) / Value 50,000 t / Year on year against the same period last year Not disclosed, Indicator The Company's target LiPF6 market share (2030) / Value 50 % / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	For specialty gases, battery materials and each product, the direction of changes in sales volumes and unit prices is indicated, but specific volume and unit-price figures are not disclosed.
Assumptions Underlying the Business Outlook	An exchange rate of ¥155/USD, higher specialty-gas sales volumes driven by growth in semiconductor demand, increased new demand for battery materials mainly in the United States, and price pass-through to reflect higher raw-material and fuel prices.
Risk amount incorporated into the outlook	Not disclosed. The potential surge in raw-material prices resulting from heightened tensions in the Middle East has been incorporated within a reasonably foreseeable range.
Medium-term management plan targets	The achievement rate for the medium-term management plan's final-year revenue target is expected to be 95%. Specialty gases are expected to exceed the plan, while battery materials are expected to fall short. The target amount itself is not disclosed.
Financial targets	The equity ratio was 55.1% at the end of March 2026, compared with 53.4% a year earlier. The financial target is not disclosed.
Capital expenditures	¥68 100 million
Market Size / Share	The semiconductor etching and cleaning gas market is expected to grow from ¥230 billion in 2024 to ¥360 billion in 2030. The Company's target market share in 2030 is at least 25%. The LiPF6 market in the United States and Japan is expected to reach 50,000t in 2030, with the Company's target market share at 50%.
New initiatives	Expansion of specialty-gas production facilities at the Shibukawa and Mizushima plants, Production expansion, broader product range and new-product launches at the Korean plant, Full-scale operation of the Chinese plant and start of sales to Japan, Building a de-China supply chain for LiPF6 and promoting recycling, Construction of a lithium-ion secondary battery recycling plant, Construction of facilities for new additives and start of sales, Supply of perfluorocarbons for intestinal ventilation technology, Development of high-refractive-index materials

Items this document does not state (12)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

For the fiscal year ended March 2026, revenue increased due to higher sales volumes of specialty gases accompanying improved utilization rates at semiconductor manufacturers, the impact of price revisions, and higher sales volumes of battery materials. The positive effect of higher revenue on operating income more than offset the impacts of the fire, higher raw-material and fuel prices, and increased depreciation. For the fiscal year ending March 2027, the Company expects growth in semiconductor demand, price pass-through to reflect higher raw-material and fuel prices, and new demand for battery materials, mainly in the United States.

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