Transforming the business portfolio through specialization

「As part of its business structural reforms, in February 2026 the Company decided to begin considering the spin-off of its styrene-related businesses, with a target date of April 2027. The spin-off is intended to enhance the businesses’ independence and profitability, strengthen the momentum of structural reforms, and establish a structure that allows for a variety of strategic options, including collaboration and capital alliances with external partners.」

「Profit attributable to owners of the parent amounted to ¥3.902 billion, up ¥530 million year on year, or 15.7%, as the company recorded an extraordinary loss related to its US subsidiary Denka Performance Elastomer, Inc., where operations had been temporarily suspended without a specified end date, while also recording a gain on the transfer of the Ofuna Plant site as an extraordinary gain.」

「The company also decided to shut down the Ofuna Plant. Production of “Toyokalon®,” the plant’s main product, a filament yarn for synthetic-fiber wigs, will be consolidated at a Singapore subsidiary. The company aims to improve profitability by reducing costs through structural reforms and shifting to new products, and will proceed with the conversion to a high-profitability business.」

「As a specific measure, the company will first accelerate portfolio transformation, including sales and exits. It will prioritize improving the profitability of the chloroprene rubber business, examine demand trends and optimal production capacity, and decide on fundamental measures.」

「Under “Business Value Creation,” the core of its growth strategy, the company defines as “three-star businesses” businesses that combine 3 elements: “specialty,” backed by the company’s outstanding technologies; “megatrends,” reflecting society’s needs; and “sustainability,” an essential requirement for business operations. The Group will concentrate its portfolio on these businesses.」

「Under “Business Value Creation,” the core of its growth strategy, the company defines as “three-star businesses” businesses that combine 3 elements: “specialty,” backed by the company’s outstanding technologies; “megatrends,” reflecting society’s needs; and “sustainability,” an essential requirement for business operations. The Group will concentrate its portfolio on these businesses.」

「Under “Business Value Creation,” the core of its growth strategy, the company defines as “three-star businesses” businesses that combine 3 elements: “specialty,” backed by the company’s outstanding technologies; “megatrends,” reflecting society’s needs; and “sustainability,” an essential requirement for business operations. The Group will concentrate its portfolio on these businesses.」

「The company decided to concentrate its portfolio on “three-star businesses” by 2030. For businesses that are difficult to convert into “three-star businesses,” it will pursue portfolio transformation, including through sales and exits.」

「The company positioned the business as a commodity business requiring restructuring under the management plan “Denka Value-Up” and considered structural reforms, but has now concluded that it will be difficult to maintain and grow the business under sole operation by the company.」

「Accordingly, the company positioned the business as a commodity business requiring restructuring under the management plan “Denka Value-Up” and considered structural reforms, but has now concluded that it will be difficult to maintain and grow the business under sole operation by the company.」

「In terms of earnings, in addition to deteriorating terms of trade, costs increased as the shift toward specialty products progressed, and operating income was ¥4.902 billion, down ¥2.845 billion year on year, or 36.7%,」

「Sales of spherical alumina and high-purity conductive carbon black increased, led by xEV-related applications, while high-performance films for electronic components and semiconductor applications and spherical fused silica fillers performed well, supported by growing global demand related to 5G and data centers. As a result, segment net sales were ¥66,160 million, up ¥9,522 million, or 16.8%, year on year, and operating income was ¥13,794 million, an increase of ¥3,578 million, or 35.0%, from the same period a year earlier.」

「Sales of spherical alumina and high-purity conductive carbon black increased, led by xEV-related applications. High-performance films for electronic components and semiconductor applications and spherical fused silica fillers also performed well, supported by growing global demand related to 5G and data centers.」

「Sales of spherical alumina and high-purity conductive carbon black increased, led by xEV-related applications. High-performance films for electronic components and semiconductor applications and spherical fused silica fillers also performed well, supported by growing global demand related to 5G and data centers.」

「The first is “Business Value-Up.” The company will focus on achieving its numerical targets by expanding earnings from advanced electronic materials aligned with megatrends such as 5G and xEVs, steadily growing the healthcare business and accelerating the specialization of foundation businesses.」

「Sales of spherical alumina and high-purity conductive carbon black grew, mainly for xEV-related applications, while high-performance films for electronic component and semiconductor applications and spherical fused silica fillers also performed well on growing global demand related to 5G and data centers.」

「Sales volumes of spherical alumina increased, mainly for xEV-related applications, while functional films for electronic component and semiconductor applications and spherical fused silica fillers remained firm on growing global demand related to 5G and data centers.」

「Sales volumes of spherical alumina increased, mainly for xEV-related applications, while functional films for electronic component and semiconductor applications and spherical fused silica fillers remained firm on growing global demand related to 5G and data centers.」

「Sales of products related to vehicle electrification, including spherical alumina and high-purity conductive carbon black, grew substantially.」

「Amid this economic environment, the Group focused on expanding its business and securing earnings by pursuing the 2 growth strategies of “transforming the business portfolio” and “introducing innovative processes,” based on the 3 growth visions of the management plan “Denka Value-Up”—“a fusion of specialties,” “sustained growth” and “sound growth”—in order to realize its corporate philosophy, “The Denka Value.”」

「The company pursued the 2 growth strategies of “transforming the business portfolio” and “introducing innovative processes,” focusing on expanding its business and securing earnings.」

「In the environment and energy field, the company decided to invest a total of ¥8 billion at the Omuta Plant and in Singapore to increase production capacity for ceramic substrates and spherical alumina, in order to respond quickly to growing global demand for thermal management materials associated with the electrification of the automotive industry.」

「From this year, the Group has launched its new management plan, “Denka Value-Up,” and is implementing initiatives aligned with its 2 growth strategies for achieving the plan’s numerical targets: “transforming the business portfolio” and “innovative processes.”」

「Using the “magnICONⓇ” technology platform of Icon Genetics GmbH, the Denka Group is developing new production technologies to replace conventional methods for norovirus and seasonal influenza vaccines, as well as manufacturing antibodies used in diagnostic reagents. To accelerate growth in specialty businesses, the Denka Group will concentrate management resources on healthcare, which it has designated as a priority area, and further accelerate the development of next-generation products.」

「Transforming the business portfolio means specialization. Accelerating growth in specialty businesses. Upgrading foundation businesses, including elastomers, styrenics, inorganic materials and resin processing, into specialty businesses. Redefining the role of commodity businesses. The target is for specialty businesses to account for 90% of operating profit in fiscal 2022.」