June 21, 2026

Jul. 28, 2026 Presentation IR seminar for listed Companies in Osaka (with transcripts) 4,398KB PDF

DAIICHI KIGENSO KAGAKU KOGYO CO., LTD.

IR seminar for listed Companies in Osaka

June 21, 2026

INDEX

I. About Us

II. Our Strengths

III. Growth Strategy

IV. Earnings Forecast

V. Shareholder Return Policy

VI. Appendix

Let me begin by highlighting three key points from today’s seminar. First, our main products have a global market share of approximately 40%. Second, we have also established a foundation in growth areas. Third, we have maintained stable dividends.

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I. About Us

DAIICHI KIGENSO KAGAKU KOGYO CO., LTD., or DKK, was established in

1956 and celebrates its 70th anniversary this year. We went public 22 years ago and are currently listed on the Prime market of the Tokyo Stock Exchange. We are a materials manufacturer engaged in the manufacture and sale of functional materials, and have steadily built our business through manufacturing over the years. Our head office is located in Kitahama, Osaka.

Now, I’d like to explain the origin of our company name. Our company name,

DAIICHI KIGENSO KAGAKU KOGYO CO., LTD., embodies our desire to remain the number one company handling rare elements, and this aspiration has been carefully passed down through the years. When we went public, there was some discussion about shortening our company name. However, as a Japanese company, and because of the significance behind the name, we decided to keep it as it is.

The management philosophy shown on this slide is something I personally value very much, and it is one of the core principles we cherish as a company. Our vision is “Growing with Rare Elements – Becoming a 100 Year Company,” and we are working toward our next stage of growth under this vision.

Zirconium is actually a material that plays an important role in our daily lives. For example, it is used in automotive catalysts to purify exhaust gases, added to cathode materials for EV batteries, and incorporated into electronic components used in personal computers and smartphones. In many different ways, the materials we provide contribute to a wide range of applications. We see ourselves as a company that supports social infrastructure behind the scenes. Although our products rarely attract public attention, we take great pride in playing an essential role in society.

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II. Our Strengths

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DKK in Numbers

Global market share of

Net sales Operating profit automotive catalyst applications

¥35.7 bn ¥3.4 bn

Approx. %

*FY3/2026 *FY3/2026

*The Company’s estimate

Number of Overseas affiliates sales ratio overseas

6 56 companies % “GlobalNiche Top 100” companiesbytheMinistry

*FY3/2026 of Economy, Trade and

Industry.

To give you an overview of DKK, let me share a few key figures. For FY3/2026, our net sales were ¥35.7 billion and operating profit was ¥3.4 billion. Our overseas sales ratio came in at 56%. We source raw materials from overseas, process them in Japan, and deliver our products to customers around the world. To support these operations, we have overseas affiliates in Vietnam, China, the United States, and Thailand.

We estimate that our flagship products for automotive catalyst applications have a global market share of approximately 40%. In recognition of these achievements, we were selected as one of the “Global Niche Top 100” companies by the Ministry of Economy,

Trade and Industry.

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Sales Composition and Position of Strategic Areas

We will focus on driving sales growth in the strategic areas of semiconductor/electronics, energy, and healthcare.

Strategicareas Automotive catalyst

Semiconductor/Electronics

Basic areas* •

•

O u x t y o g m en o t s i e v n e s c o a r talytic materials

• Semiconductor • Electronic Consolidated abrasives components

• Opticalmaterials • Electronic substrate, 4.5% sales 62.7% etc. ¥35.7 bn

4.7%

(FY3/2026)

Energy 6.0%

• Secondary battery • Hydrogen-related materials materials,

• Fuel cell materials etc.

What are “strategic areas”?

Healthcare

• Biomaterials • Medical devices, Strategic areas encompass semiconductor, next-generation energy, and other fields, whose

• Antibacterial social importance continues to rise and where future growth and profitability are expected. The agent/environment etc. Company positions these fields as its priority areas for management resource investment.

* Basic areas:Industrialcatalysts,structuralmember,refractory, etc.

Turning to our sales composition, automotive catalyst applications account for approximately 63% of our consolidated sales, making up the largest portion of our business. There is no doubt that the share of electric vehicles will continue to increase.

Therefore, we are focusing on expanding our strategic areas, which currently account for a relatively small portion of our sales. Our strategic areas—Semiconductor/Electronics,

Energy, and Healthcare—all have strong growth potential. We believe that by leveraging our technological capabilities and core strengths, we can further strengthen our presence in these fields. Accordingly, we are focusing on driving sales growth in these strategic areas.

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DKK’s Three Strengths

DKK has established the only integrated value chain in the world on the basis of its three strengths.

Supply chain that capitalizes on Vietnamese

❶ subsidiary

Customer network built on collaboration among

❷ industry, government, and academia

Advanced R&D and technical capabilities

❸

Now let’s move on to DKK’s three strengths.

We believe our strengths lie in our supply chain that capitalizes on our Vietnamese subsidiary; our customer network built on collaboration among industry, government, and academia; and our advanced R&D and production engineering capabilities. Today,

I’d like to focus primarily on our supply chain that capitalizes on our Vietnamese subsidiary.

Supply Chain Built by the Company

Built an integrated supply chain from ore to products under a procurement system not dependent on specific countries, centered on our

Vietnamese subsidiary.

Built a resilient value chain that leverages our proprietary supply chain and is less susceptible to fluctuations in the external environment.

Customers

Zirconium  Semiconductor manufacturers compounds  Semiconductor abrasive manufacturers  Electronic component manufacturers

 Battery component manufacturers

 Ceramics manufacturers

 Catalyst manufacturers

 Automobile manufacturers, etc.

Zirconium Zirconium

Mineral sand oxychloride (crude ore) Zircon sand (intermediate compounds (product) materials)

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② (1) Gotsu Site (2) Fukui Site

①

④ ③ (3) R&D Center (4) I.D.U. Co., Ltd.

Zircon sand mining sites

Sold in Japan, North

America, Europe, East Asia, the Global South,

Vietnamese and Central Asia subsidiary

Completed within Vietnam

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The zirconium compounds we ultimately handle are derived from mineral sand, also known as beach sand, which serves as the crude ore. Zircon sand is produced by extracting the zirconium components from mineral sand. It is then refined into an intermediate material called zirconium oxychloride before finally being processed into zirconium compounds. Zirconium oxychloride is essential for producing high-purity zirconium compounds. Previously, we purchased zirconium oxychloride from external suppliers. However, by producing zirconium oxychloride ourselves from mineral sand at our Vietnamese subsidiary, we have established a unique supply chain from ore to products under a procurement system not dependent on specific countries.

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Vietnamese Subsidiary

Click HEREforthe Vietnamese subsidiary’s homepage.

Company VIETNAM RARE ELEMENTS CHEMICAL JOINT name STOCK COMPANY

Establishment March 2012

Capital VND 808,618 million

DAIICHI KIGENSO KAGAKU KOGYO CO., LTD.:

Investor 87.631%

JBIC*: 12.367%

General

Keita Kodama

Director

Number of

228 (as of December 31, 2025) employees

Business

Production and salesof zirconium oxychloride purpose

Lot C1, Phu My 3 Specialized Industrial Park,

Address

Tan Phuoc Ward, Ho Chi Minh City, Vietnam

*Japan Bank for International Cooperation

Next, I’d like to talk about our Vietnamese subsidiary.

The subsidiary was established in 2012 and is now in its 14th year of operation. The plant was still under construction when the COVID-19 pandemic struck. We actually stayed and slept inside the plant to get it up and running. Although we faced various challenges, including equipment issues, we finally achieved our target production capacity in July

2025, and the plant is now operating at full capacity. The subsidiary currently has 228 employees. The increase in our consolidated workforce in recent years is primarily attributable to the growing number of employees at our Vietnamese subsidiary. In addition to our own investment, the subsidiary is also backed by the Japan Bank for

International Cooperation, or JBIC. JBIC is a policy-based financial institution that provides equity investments and loans to contribute to the sound development of Japan and the international economy. Since the subsidiary was established, JBIC has provided both equity investments and loans, and has also supported us in our negotiations with the

Vietnamese government. We believe this reflects JBIC’s recognition of the significance and value of our business.

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Zirconium:Supply Chain and DKK’s Advantage

 Backed by its decades of refining expertise and low-cost facilities and resources, the zirconia refining supply chain has been concentrated in China.

 To build a materials supply system that is resilient to geopolitical risks, we have commencedthe Vietnam business.

Global issue Excessive Dependence on China Our unique solution Supply chain via Vietnam

Although zirconium ore reserves and production are distributed across countries We have a system that enables us to source intermediates from multiple countries—a such as Australia, the refining process is heavily concentrated in China, creating strength that is rare worldwide. a bottleneck in the supply chain.

Zirconium ore reserves, production, and refining (2024) China Users of

Risk zirconium

Ores compounds

Reserves Australia

Production volume Australia South Africa Vietnamese

R v e o f l i u n m in e g China * The refining process is concentrated in China. ベsトubナsムid子ia会ry社

0% 20% 40% 60% 80% 100%

A stable supply is the greatest added value we provide.

Now, let’s turn to geopolitical risks.

Recently, we have seen a lot of news about rare earths, and the zirconium industry has a very similar structure. Although zircon sand reserves and production are geographically diversified, more than 90% of zirconium refining operations are concentrated in China, resulting in excessive dependence on China. Backed by decades of expertise as well as low-cost facilities and resources, China dominates the zirconia refining supply chain. In the past, when China announced stricter environmental regulations, exports of zirconium oxychloride were halted, and similar disruptions could occur again in the future. While the applications I introduced earlier were mainly products used in our daily lives, such as automobiles, zirconium compounds are also used in applications related to economic security. For this reason, excessive dependence on China is not desirable. We therefore established our Vietnamese subsidiary 14 years ago and have finally achieved a mass- production system. While our competitors remain dependent on China, we are the only company outside China capable of ensuring a stable supply if any disruptions occur. In the materials business, developing and delivering high-quality products is, of course, important. Equally important is maintaining a stable supply. Although this capability tends to attract attention only when problems arise, we believe it is one of our key strengths. Our loans to the Vietnamese subsidiary are substantial and are denominated in foreign currencies, so foreign exchange fluctuations do affect our financial results.

Nevertheless, we hope you will recognize that our Vietnam-based supply chain represents a strength that our competitors do not have.

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Barriers to Entry That Are Difficult for Others to Overcome

Commercial production of zirconium oxychloride in Vietnam was achieved after overcoming numerous barriers.

Compliance with environmental regulations and building relationships of trust with the government cannot be achieved overnight, potentially posing substantial barriers to entry that financial strength alone cannot resolve.

Barrier of site Selecting optimal sites from multifaceted perspectives,

1 including access to zirconium ore mines, logistics network selection development, and securing local human resources

Barrier of Establishing systems that comply with strict environmental regulations, such as addressing naturally occurring

2 environmental radioactive materials (NORM) and for waste and standards wastewater.

Addressing cost competitiveness against China—which has

Barrier of production completed depreciation and is capable of large-scale

3 system and price production—in addition to the high difficulty of impurity removal technology for high purification

Barrier of Cultivating long-term relationships of trust with the local

4 relationship building government and key persons

You might wonder whether our competitors could do the same, but it is not that simple.

In fact, one of our competitors considered setting up operations overseas but ultimately abandoned the plan. This business has high hurdles in many respects, and we have established significant barriers to entry.

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Potential of Vietnam Business

Theglobal demand for zirconium oxychloride(ZOC) reaches approximately 260,000 tons a year, of which around 60,000 tons are used by countries other than China.

Most of them in use rely on China-origin raw materials. Given our local base in Vietnam, we have significant potential for business expansion.

Globalusage of ZOC Even in countries other than China, approximately 90% of demand relies on raw materials supplied from China.

Other

China countries

Approx. Approx.

Given our local base in Vietnam, we are well positioned to expand into

200,000 t 60,000 t the approximately 60,000 tonsusedoutside China.

Total

Approx.

260,000 t

Outside

China

Approx. 90% China:

*As of 2025

Approx. 10%

ZOC, etc.

Untapped area on our radar

*Created by the Company based on data from Asian Metal, etc.

This slide shows the potential of our Vietnam business.

Global production of zirconium oxychloride is estimated at approximately 260,000 tons, of which about 60,000 tons are used outside China. With our Vietnamese subsidiary, we believe this market holds significant potential for expanding our business.

Since zirconium’s atomic number is 40, we have designated April 10 as “Zirconium

Day” and officially registered it. To help people feel a closer connection to our products, we created Zirco-kun and Ceria-chan, mascot characters designed by our own employees, and have also registered them as trademarks.

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III. Growth Strategy

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Current Status of “DK-One Next”

Vision

Growing with Rare Elements – Becoming a 100-Year Company

Medium-term Management Policy

Remain committed to creating new 100th businesses and tackling the major changes that are set to occur in the 76th business environment over the next

10 years.

Where we stand 73rd

Six Pillars (Materiality)

70th (1)Creating new businesses (4) Utilizingorganizational practices that

(2)Reforming our profit structure consistently produce results

(3)Developing innovative (5) Cultivating a Kigenso-like corporate culture

2nd Period manufacturing techniques (6) Implementing measures for sustainability

67th

Toward the 73rd Fiscal Year, the Midpoint of

1st Period Business Portfolio Reform 3rd Period

FY3/2023–FY3/2026 FY3/2027–FY3/2029 FY3/2030–FY3/2032 –FY3/2056

10-year Medium-term Management Plan under “DK One Next”

Let’s move on to our growth strategy.

To achieve sustainable growth, we are implementing a 10-year Medium-term

Management Plan. The 70th fiscal year, which ended in March 2026, marked the completion of the four-year 1st period. We have published a review of the 1st period on our corporate website, so I encourage you to take a look. Building on the lessons learned from the 1st period, we are now focusing on expanding our strategic areas during the current 2nd period. Going forward, we plan to issue press releases more proactively than ever to keep you informed about our upcoming initiatives, and we hope you will continue to follow our progress.

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Semiconductor/ElectronicsArea

Semiconductors require polishing for practical use and the Company’s zirconium compounds are gaining attention as abrasives.

The compounds are also used in other applications, including ceramic capacitors used in smartphones.

The Company’s product application (1)Used as abrasives The Company’s product application (2)Used as ceramic capacitors

Rough- Intermediate

Finishing polishing polishing

Simplified process image

Illustrated image of powder

• Semiconductor fabrication requires a nanometer-level wafer surface planarizationpriortocircuitformation. • Zirconiumcompoundsarematerialswithexcellentelectricalpropertiesand

• ControllingtheparticlesizeandshapeofthepowdersenablestheCompany’s usedasmaterialsforelectroniccomponentsaswell. zirconiumcompoundstodeliverpolishingperformancetailoredtothewafer • Especially,ceramiccapacitorsareusedasmaterialsthatsupportthefunctionof surfaceconditionsandprocessconditions. storing and releasing electrical energy and installed in a wide range of

• Thecompoundsareusedasabrasivematerialsthathelpachievehigh-precision electronicdevicessuchassmartphones,PCs,andelectrichouseholdappliances. surfacemachining.

Now, let’s take a closer look at our three strategic areas.

The Semiconductor/Electronics area has strong growth potential. Demand for abrasives used in semiconductor manufacturing is growing. As semiconductors become more advanced, their performance is enhanced through processes that involve forming and removing various layers. Because our core technology enables us to control the particle size and shape of various powders, we can provide the materials required for each process. Colloidal silica and alumina are commonly used to polish substrate wafers.

However, for SiC, or silicon carbide, semiconductors, zirconium is gaining attention because its hardness is well suited to this application.

Another application is ceramic capacitors, which have also been attracting attention recently. Although zirconium is not a main component of ceramic capacitors, adding zirconium enhances their stability and reliability. Therefore, zirconium is considered an essential additive for automotive Multi-Layer Ceramic Capacitors (MLCCs) and MLCCs used in AI data centers, where high levels of stability and reliability are required. As a result, we are also receiving orders for this application.

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Future of the Semiconductor/Electronics

Demand for abrasivesandceramic capacitors are expected to continue growing going forward.

The growth rate of semiconductor abrasives market is estimated approximately 28% annually, and the market will reach approximately ¥10.0 billion by 2032.

Surrounding business environment and opportunities

Market size of semiconductor abrasives

1 Explosive growth in demand for AI/data centers

Driven by the expansion of generative AI and cloud services, semiconductor demand is

2032 increasing structurally, leading to capacity expansion of the entire manufacturing process, which consequently expects to boost demand for abrasives and other consumables.

2026

2 Advancement and miniaturization of semiconductors

Approx.

As advanced semiconductors become increasingly multilayered and miniaturized,the Approx. Market growth ¥10.0 bn importanceofsurface planarization has risen. To achieve high precision and low defect, ¥2.2 bn rate: demand for zirconium-based abrasives and other high-performance materials is growing.

28%/year

3 Shift toward advanced ceramics

The adoption of advanced ceramics, which have properties such as heat resistance, corrosion resistance, and high strength, is expanding in the electronics area. Demand for zirconium compounds and other high-purity materials is also expected to increase in the medium to long

*Created by the Company based on “Current status and future outlook of markets for power term. devices and power electronics-related equipment 2023” published by Fuji Keizai

As demand grows, we will further strengthen our product improvement efforts. Because these improved products are not commodity products, they offer higher profitability.

Furthermore, since the Semiconductor/Electronics area is vital to economic security, users are increasingly asking whether they should rely on specific countries for supply.

As a result, our Vietnam business is gaining attention and is highly valued. While this trend can also be seen in other areas, we believe it is particularly strong in the

Semiconductor/Electronics area. By leveraging both our technological capabilities and our ability to provide a stable supply, we aim to increase our earnings from growing areas.

Energy Area

Across the next-generation energy supplychain, the Company’s products are used in a wide range of applications and processes.

The next-generation energy is growing more significant, and the demand for the Company’s products is expected to continue increasing going forward.

The

Company’s product applications

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O₂

Renewable energy

Steam

Industrial-use energy

Storage

O₂ (secondary batteries)

The characters show where use of the SOEC SOFC

Company’s products is being considered

Flow of sustainable energy

Flowofhydrogen

Liquified natural gas (LNG） Household-use energy

CO₂

Stored energy

(dihydrogen)

Hydrogen generating station Grains Biomass ethanol (refinement/shift catalyst)

CNG/LNGvehicles

L e iv x e c s r t e o t c a k Stored energy (methane) Fuel cell vehicles(FCV)

Flexible-fuel vehicles (FFV) Methanation (catalysis)

TSEPRM4082

Turning now to the Energy area.

Next-generation energy is becoming increasingly important. For example, our catalyst products are used in the production of sustainable aviation fuel, or SAF. Our products are used in a wide range of applications across the Energy area. This slide shows applications where our products have already been adopted or are currently under consideration.

Energy Area

Secondary Battery

Secondary battery is, unlike a single-use battery, reusable multiple times by recharging.

It is used in electronic devices and EVs. With an annual market growth rate of approximately 20%, it is an area with future growth potential.

What is a secondary battery?

Market size for automotive secondary batteries

Zirconium compounds play a role in protecting the cathode of lithium-ion secondary batteries, contributing to enhancing safety, durability and output of the batteries.

2032

Cathodeactive Anode active material Electrolytic solution material

(Oxide material) (Carbon material) 2026

Conductive agent

Binder

Market growth Approx. Approx.

¥10.0 bn rate: ¥30.0 bn

20%/year

Separator

*Created by the Company based on data from GlobalData Plc.

Current collector

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Cathode Anode

Discharge Charge

Our product

TSEPRM4082

There are two applications for which we already provide a stable supply.

The first is secondary batteries. Zirconium compounds play a role in protecting the cathode of lithium-ion secondary batteries, contributing to enhancing the safety, durability and output of the batteries. By facilitating the smooth movement of lithium ions, they help prevent abnormal thermal runaway. In ternary lithium-ion batteries, which use nickel, cobalt, and manganese, the addition of zirconium is considered essential.

While demand for various types of automotive batteries continues to grow, we are beginning to identify the potential to improve the performance of not only ternary batteries but also lithium iron phosphate (LFP) batteries by adding zirconium through the establishment of our evaluation framework. In our review of the 1st period of the

Medium-term Management Plan, growth in the secondary battery area fell short of our expectations. To address this, we are strengthening our evaluation framework and reviewing our approach to customers.

Energy Area

Solid Oxide Fuel Cell (SOFC)

SOFC is one of fuel cells that boasts high power-generation efficiency.

Zirconium oxide is mainly used for SOFC electrolytes which have a market size of around ¥41.3 billion as of 2025.

What is Solid Oxide Fuel Cell (SOFC) ?

Market size of SOFC system

An SOFC is a next-generation fuel cell that boasts high power-generation efficiency and, for

SOFC electrolytes, zirconium oxide is mainly used. By applying the technologies cultivated through research and development on electronic materials and fine ceramic materials, the

Company provides electrolyte materials with high ionic conductivity and formability.

2025 2030

Electrolyte film

Approx. Market Approx.

growth rate

¥41.3 bn ¥50.0 bn

4%/year

Cathode Anode

*Calculated by the Company based on “Fuel-cell-related technologies and markets—present and future outlook 2025”published by Fuji Keizai

Separator Separator

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O 2 H 2

O2-

TSEPRM4082

The next topic is Solid Oxide Fuel Cells, or SOFCs.

Power demand from AI data centers is placing increasing strain on electricity supply.

Across all types of power sources, there are significant order backlogs, and supply has not been able to keep pace with demand. While large-scale thermal power plants take time to build and require transmission infrastructure, SOFCs can be installed on-site and begin generating electricity simply by supplying gas, ammonia, or hydrogen. This is why they are attracting significant attention. We have been involved in the SOFC field for more than 30 years. In fact, more than 20 years ago, I was responsible for the SOFC business as a sales representative. After more than two decades, I feel that this market has finally reached the early stage of growth, and I believe it has strong growth potential going forward.

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Healthcare Area

Zirconium is highly safe for the human body, which gives it a significant advantage in the healthcare area.

The Company’s products are used in biomaterials whose market is projected to expand, and are also applied in other diverse fields such as medical devices and antimicrobial agents.

Zirconium’s advantageous properties in healthcare area

DKK products’ main applications

Zirconium, characterized by properties such as its

DKK’s advanced tech

Zirconium’s properties firmness, ductility, and color tone, is widely used. responsiveness

Biomaterials

High safety (biocompatibility)

Addressing individual customer needs through We offer raw materials for applications in

No risk of allergic reaction to metals biomaterial agents and materials with antimicrobial advanced technical effects.

High durability and resistance to capabilities Antimicrobial The market is expanding from antimicrobial to degradation agents antiviral applications.

We offer materials for scintillator applications for use in medical devices.

DKK’s products is used especially in the biomaterial Medical *Medical devices are not made of zirconium. devices field within the broader healthcare area.

Let’s move on to the Healthcare area.

A key property of zirconium is its high biocompatibility, meaning that it is highly safe and harmless to the human body. Combined with our material customization technology, this has led to steadily growing demand in the biomaterial field.

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Future of the Healthcare Area

Demand for zirconium is rising, driven by its excellent aesthetic properties as well as its suitability for applications where durability and biocompatibility are required.

Biomaterial market is growing at approximately 6% a year and stable growth is expected going forward.

Surrounding business environment and opportunities

Market size for biomaterials

1 Expanding biomaterial demand

Demand for artificial joints and dental implants is rising due to factors such as population

2032 aging.Zirconium compounds are gaining wider adoption due to their excellent durability and biocompatibility. 2026

2 Rising aesthetic needs

In the dental area, there is a growing tendency to choose ceramic materials over metals from the perspectives of achieving “natural appearance” and avoiding metal allergies. Demand for Approx. Market growth Approx. white-colored and aesthetically superior zirconia is rising. ¥24.5 bn rate: ¥35.0 bn

6%/year

3 More stringent biocompatibility and safety regulations

With the increasing stringency of regulations and quality requirements for medical materials, greater emphasis is being placed on long-term stability in quality and low toxicity.

Chemically stable and biocompatible zirconium compounds are highly compatible with these regulatory requirements and increasingly being adopted.

*Created by the Company based on QYResearch“Global Zirconia Based Dental Material

Market Research Report 2025”

One of the key characteristics of zirconia is that it can be colored. For instance, if a patient loses a tooth, a replacement can be made to precisely match the original tooth color. Thanks to these characteristics, zirconia is not only highly safe but also highly versatile and extremely durable. Currently, alumina and titanium are commonly used for artificial bones, but because of their durability limitations, patients often require repeat surgeries after 10 or 15 years. Zirconia is gaining attention in Europe. Although its weight remains a challenge, if this can be overcome, we believe the Healthcare area also offers significant growth potential.

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IV. Earning Forecast

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Consolidated Earnings Forecast

(Millions of yen)

FY3/2027 FY3/2026

Net sales Net sales YoY

Forecast Results ratio ratio

Net sales 37,000 100.0% 35,751 100.0% 3.5%

Gross profit 10,700 28.9% 10,333 28.9% 3.6%

Operating profit 3,000 8.1% 3,479 9.7% -13.8%

Ordinary profit 2,000 5.4% 3,255 9.1% -38.6%

Profit attributable to owners of

1,500 4.1% 2,514 7.0% -40.3% parent

Operating profit before

6,400 17.3% 6,796 19.0% -5.8% depreciation

 Sales volume is expected to decrease, partly reflecting lower demand in certain areas. Net sales, however, are projected to increase, driven by firm demand for hybrid vehicles and the expansion of business opportunities in Strategic Areas.

 Profit projected to decline, reflecting higher R&D expenses aimed at medium-to long-term growth in Strategic Areas, base pay increases, and higher maintenance and repair expenses to ensure stable operations.

 The exchange rate is set at ¥151/$, and foreign exchange losses on foreign currency-denominated assets and liabilities are factored in.

Now, let’s look at our consolidated earnings forecast.

For the current fiscal year, while net sales are projected to increase year on year, operating profit is expected to decline year on year. Furthermore, ordinary profit and profit attributable to owners of parent are projected to decline significantly year on year.

In our Vietnam business, we have provided substantial loans denominated in foreign currencies. As a result, if the yen appreciates, we incur valuation losses. The spot exchange rate in March 2026 was around ¥160 per U.S. dollar, while our assumed exchange rate is ¥151 per U.S. dollar. The projected valuation losses mainly reflect this difference in exchange rates.

Ⅰ. AboutUs Ⅱ. OurStrengths Ⅲ.GrowthStrategy Ⅳ.EarningForecast Ⅴ.Shareholder Return Policy Ⅵ. Appendix

Factors Behind the Change in Operating Profit

55,,000000 (Millions of yen)

1,000 -890

44,,550000

44,,000000 200 -850

3,479 50

3 33 3, ,, ,0 55 00 00 00 00 0 (i) Forex (ii)Sales (iii) CoGS (iv) s V u i b et s n id a i m ar e y se 3,000

(v) SG&A

22,,550000

22,,000000

 Value-added impact from  Impact from production

11,,550000 supply stability enabled by the efficiency changes

11,,000000 Vietnam business

550000

FY3/2026 FY3/2027

(¥150.67 /USD) Operating profit (-480) (¥151.00/USD)

(i) Forex factors +50 Sales:+320; Cost:-270

(ii) Sales factors +1,000 Price revision: +1,330; Volume:-290

(iii)CoGS factors -890 Production volume fluctuation and higher equipment repair exp.: -840; Inventory sales:-250

(iv)Vietnamese subsidiary +200 Earnings improvement:+450; Revenue and cost impact from full-scale operations: -250 factors

(v) SG&A factors -850 R&D costs:-470; Maintenance and repair: -150; Professional fees:-80;Logistics costs:-60

*+: Favorable variance, -: Unfavorable difference

Turning now to the factors behind the change in operating profit.

We expect operating profit to decline by approximately ¥500 million year on year. The first factor behind this is CoGS. A decline in production volume reduces our profitability as a manufacturer. In addition, SG&A expenses are expected to increase due to increased investment in R&D, particularly in our strategic areas, as well as higher maintenance and repair costs. In Japan, we have plants in Fukui and Shimane. Since the Shimane plant has been operating for 30 years and the Fukui plant for 20 years, maintenance is essential. As we can manufacture a wide variety of products on a single production line, maintaining and continuing to use our existing facilities is more important than making new investments. Maintenance and repairs are therefore essential to ensure a stable supply.

Naturally, we have also implemented base pay raises, which have contributed to higher

SG&A expenses. We consider all of these to be necessary investments for our company.

Ⅰ. AboutUs Ⅱ. OurStrengths Ⅲ.GrowthStrategy Ⅳ.EarningForecast Ⅴ.Shareholder Return Policy Ⅵ. Appendix

V. Shareholder Return Policy

Ⅰ. AboutUs Ⅱ. OurStrengths Ⅲ.GrowthStrategy Ⅳ.EarningForecast Ⅴ.Shareholder Return Policy Ⅵ. Appendix

Return to Stockholders

Dividend Policy Click herefor more detail

We aim to achieve stable and sustainable dividend payments by setting the lower limit of dividend on equity ratio (DOE) at 1.8% and targeting a payout ratio of30%.

Dividend Trends

Dividend per share

(yen) 34

79.7%

Payout ratio 30

55.5%

48.3%

30.2%

35.4%

27.0%

20.6%

FY3/2021 FY3/2022 FY3/2023 FY3/2024 FY3/2025 FY3/2026 FY3/2027

Now, let me talk about shareholder returns.

Looking at the figures on this slide, some of you may feel that they are a little conservative. As sales of our flagship catalyst products decline over time, we need to make up for that by expanding other businesses. This is also a period when we need to invest in capital expenditures, R&D, and our people. In addition, because foreign exchange valuation losses arise if the yen appreciates, it is difficult to control profit attributable to owners of parent. Therefore, we have set our dividend on equity (DOE) at a level slightly above the current 1.8% level. As our strategic areas continue to grow, we believe that even with a dividend payout ratio estimated at 30%, our DOE will eventually reach around 3% at a certain point in the 3rd period. At this stage, we aim to maintain stable dividends, using a DOE of 1.8% and a dividend payout ratio of 30% as our benchmarks.

We have two perspectives on the approximately 40% global market share of our main products. First, it reflects the trust we have built over many years in the automotive industry, where quality and cost requirements are extremely demanding.

At the same time, however, we believe we have become too dependent on this business and must move beyond the current situation. We are not satisfied with where we are today. By moving away from the current situation through the expansion of our presence in growth areas and continued investments, we aim to improve our profitability and ultimately return greater value to our shareholders.

Although we cannot control our share price directly, we believe that by issuing press releases in line with our earnings forecast and helping investors better understand our initiatives, our share price will rise over time. We therefore believe that shareholders will be able to appreciate the benefits of investing in DKK not only through dividends but also in other ways.

Q&As

Question 1: Could you elaborate on DKK’s strengths other than the Vietnam business?

While zirconium exhibits properties on its own, it develops a variety of functions when combined with other elements.

We believe that our strength lies not only in the inherent properties of zirconium, but also in our ability to match the characteristics required by our customers through our proprietary know-how. Therefore, our ability to develop composite materials is one of our key strengths.

One example of this is calcia-stabilized zirconia (CSZ), a rare-earth-free ceramic material for which we announced an improved version in October 2025. Because of its high transparency, we believe it can be used not only for structural components but also in fields where aesthetics are required.

Another strength is our ability to manufacture products on the same production line. To give you a simple example, some OEMs and other companies built production lines specifically for battery electric vehicles (BEVs), only to suffer impairment losses when

BEV growth slowed down. In contrast, we can manufacture materials for both secondary battery cathode use and catalyst use on the same line. We believe this is one of our strengths in terms of both cost competitiveness and flexibility.

In terms of customer networks, because we provide zirconium across a wide range of applications, we have built long-standing relationships with various customers. In some cases, when our customers are large corporations, other departments within the same company require zirconium for different applications and choose our products as well. We believe this is a strength that our competitors do not have.

Question 2: I understand the added value of the Vietnam business in terms of stable supply, but could you elaborate further on its impact on your financial performance?

It is often assumed that manufacturing in Vietnam is inexpensive, but that is not necessarily the case. While we are still in the start-up phase, China provides massive subsidies for targeted sectors. In addition, equipment costs in China are extremely low.

For instance, large-scale equipment that costs ¥100 million and takes a year to deliver in

Japan can be acquired in China for one-third or one-fourth of that price and can be delivered immediately. To be honest, competing with China on price is difficult, and our materials are not cheaper than those from China.

At present, the impact on financial results is still negative. We are working to reduce that negative impact through cost reductions, and in FY3/2026, our efforts have delivered better results than expected, allowing us to generate higher profits than we had initially forecast.

Furthermore, as I explained in the Semiconductor/Electronics section, a growing number of customers are willing to pay a premium if they can secure a stable supply from an economic security perspective. We are working to narrow the price gap with China through cost reductions while contributing to profitability by creating new businesses.

Question 3: You mentioned that the demand for automotive catalysts to purify exhaust

32 gases is declining; what do you consider to be the next pillar of business or products? Also,

I understand that low-priced zirconium products are available from China. Could you tell us about your competitive advantages compared with those products? Finally, regarding foreign exchange, should we consider your company a beneficiary of a stronger yen?

A stronger yen is not beneficial to us; it is a negative factor. Since we have foreign currency-denominated loans to our overseas subsidiaries, a stronger yen works against us.

To be honest, we believe we can compete effectively as long as exchange rates remain stable, so we would prefer them not to fluctuate widely.

Regarding the next pillar, we have three strategic areas, all of which are extremely important. However, when trying to develop something new to replace catalyst products, I believe that the area where we must change our mindset the most is semiconductors.

Because the required quality standards are high, if we can build the capability to meet those standards, we believe we can expand into other fields as well. Therefore, I want to place the greatest emphasis on semiconductors. Our sales department is gathering semiconductor projects and collaborating with the technical division to address them. To be honest, we are not yet able to address the most demanding semiconductor applications, because we have not traditionally operated at that level. However, we are moving forward with the goal of raising our level to that standard in a few years, so in my mind, strengthening our semiconductor business is the top priority.

As for the gap with Chinese competitors, we cannot win on cost, but I believe our know- how gained through working across a wide range of fields is something our Chinese competitors cannot match. Furthermore, in terms of stable supply, I believe we have an advantage over Chinese competitors. However, since Chinese competitors will likely catch up with us in terms of stable supply as well, we simply have to continue improving ourselves while taking on that challenge. I believe our current competitive advantages lie in our know-how, past experience, and customer network.

Question 4: As the semiconductor market is expected to continue expanding rapidly, new capital investment will likely be needed to meet growing demand. Could you share your thoughts on investment in both Japan and Vietnam?

That is correct. As I mentioned earlier, while our basic production line can be shared, semiconductor applications require us to upgrade our equipment in key areas in order to meet the required impurity specifications. Therefore, we will be making those investments.

Those investments will be made in Japan, not Vietnam. Investments in Japan have already been incorporated into our plans for both the previous and current fiscal years. We are currently making the necessary investments based on our three-year and five-year plans while closely monitoring demand.

Question 5: Zirconium is regarded as a promising rare earth with a bright future, but is it really enough to rely solely on zirconium? Are you considering developing rare earths other than zirconium, or other materials?

I apologize if my explanation was unclear, but zirconium is a rare metal, not a rare earth.

Regarding the point of whether focusing solely on zirconium is insufficient, zirconium is

32 an interesting material that continues to generate new needs, so I believe we can maintain and expand our sales by continuing to deepen our expertise in zirconium. On the other hand, the know-how we have accumulated over the past 70 years working with zirconium can also be applied to specific applications involving other elements. While we cannot compete with specialized manufacturers in mainstream materials such as titanium, alumina, and silica, our processing know-how can also be applied to certain elements used in specific layers of semiconductors. Therefore, we are not limited to zirconium alone. We see opportunities to expand into other elements as well, and we already have a track record of doing so.

Question 6: I am very interested in the applications of zirconium in the Healthcare area.

You mentioned that it is harmless to the human body; what applications are you considering utilizing it for in the future?

While research into implant applications is progressing, it may be difficult to use zirconia directly for applications such as artificial knee and hip joints because of its weight.

However, given its biocompatibility and durability, we believe zirconia holds great promise.

Question 7: You mentioned that the global demand for zirconium oxychloride is 260,000 tons per year. How do you expect global demand to grow in the future?

Since zirconium oxychloride serves as the starting material for applications requiring high-purity zirconium compounds, we believe demand will continue to grow steadily.

Demand has been increasing at an average annual rate of about 5%, and we expect it to continue growing at a similar pace over the next few years. However, the purpose of establishing our Vietnamese subsidiary was not to pursue further expansion, but rather to diversify risk. While we would also like to source zirconium oxychloride from China, we intend to provide products produced in Vietnam for applications related to economic security.

Question 8: You are wearing workwear; did you come up through the production floor?

Could you tell us about your career background? Also, what are the pros and cons of changing jobs?

I am not an engineer, nor did I come from a production background. As the head of a manufacturing company, I sometimes feel a bit self-conscious about that. To be honest, when our engineers and production staff get into highly technical discussions, I can’t always follow everything, but it’s enjoyable to see them talking so passionately about their work. I wear it simply because it’s very comfortable and I like it. We have the same workwear at all our business locations including Vietnam, and I wear it at our head office as well. I especially like the workwear our employees recently chose for me because it makes me look slimmer.

Regarding the pros and cons of changing jobs, I joined a bank in 1995. After working for nine and a half years, I joined DKK. The best part is that we make things ourselves.

Creating products and delivering value directly to customers is a lot of fun. Also, I believe manufacturing is well-suited for Japanese people. I have a sense that finance is perhaps

32 more suited to Westerners, and given my personality, I feel that manufacturing fits me better than finance. That is not to say my previous company wasn’t good, but one of the great things about DKK is that many employees have a strong sense of pride in the company. We currently have a workforce of around 800, but when we published our 70th- anniversary commemorative book, we received a huge number of contributions even from

Vietnam, and everyone wrote lively, positive things. It might partly be because we are still a relatively small company, and therefore we feel close to each other, but since so many employees take pride in the company and want to grow together with it, I am glad I came here.

As for the downside, some people tend to act before thinking things through. Many people act as soon as they have an idea, which sometimes makes me wonder if that’s the best approach. On the other hand, for people who only do what they are told, I feel a sense of frustration, thinking that with such fascinating materials and great customers all over the world, they should just go for it.

Questions that could not be answered during the presentation

Question 9: As electric vehicles become more widespread and the number of gasoline- powered vehicles declines, demand for automotive catalysts to purify exhaust gases is expected to decline. This could lead to lower sales and profits. How are you responding to this trend?

We recognize the decline in gasoline-powered vehicles as EV adoption advances as a medium- to long-term structural change. At the same time, the shift to EVs has been slower than initially anticipated, and demand for hybrid vehicles remains solid. Against this backdrop, we are pursuing a portfolio transformation by reinvesting the profits generated from our automotive catalyst business into growth areas while expanding our strategic areas, including Semiconductor/Electronics, Energy, and Healthcare. We plan to increase the share of sales from these strategic areas to 50% or more by 2032.

Question 10: What do you see as medium- to long-term risks?

A delay in the business portfolio transformation is one of our medium- to long-term risks.

Our sales are heavily weighted toward automotive catalysts to purify exhaust gases, a market where demand is expected to decline in the future. Therefore, if our strategic areas do not grow as planned, the transformation of our earnings structure could be delayed.

As for foreign exchange risks, our business performance is susceptible to foreign exchange fluctuations due to our high overseas sales ratio and foreign currency- denominated loans to our overseas subsidiaries. Supply chain and geopolitical risks are also important. The zirconium we handle carries potential risks associated with dependence on specific countries during the refining process. To reduce that dependence, we are advancing diversified procurement through our Vietnamese subsidiary, but we believe it remains necessary to closely monitor changes in the external environment.

Question 11: What growth rates are you targeting for your growth areas?

We estimate the annual market growth rates to be approximately 20% for secondary batteries, 6% for healthcare, and 28% for semiconductor abrasives. However, we aim to expand demand for our products at a rate exceeding market growth.

Question 12: What kind of companies are your competitors? Are your products also used in hybrid vehicles?

There are a number of companies engaged in the zirconium materials business both in

Japan and overseas, and these materials manufacturers are our competitors. However, most of our competitors focus on supplying products to specific fields, and there are only a few manufacturers like us that supply products across multiple fields. In addition, we differentiate ourselves through our integrated production system covering everything from raw materials to finished products and our advanced material design technology.

Our products are also widely used in hybrid vehicles. Hybrid vehicles, in particular, require high-performance materials because exhaust gas treatment requirements are especially stringent, and we believe this is an area where our competitive strengths can be fully leveraged.

Question 13: Do you have a target share price? Are you considering introducing a shareholder benefit program?

Share prices are determined by the market, and we do not disclose a specific target share price.

With respect to shareholder returns, we seek to balance returns to shareholders with growth investments under our policy of maintaining a stable dividend with a minimum

DOE of 1.8% and a target dividend payout ratio of 30%. At this time, we have no specific plans to introduce a shareholder benefit program.

Question 14: MLCC-related stock prices have been rising. Are your shipments for MLCC applications also growing rapidly?

Demand for our products for MLCC applications in the electronic components market remains solid, and our sales have been increasing. Whether our share price will see the same kind of rapid increase as that of certain companies depends on market conditions and the pace of broader adoption.

Question 15: Are there any environmental risks associated with your Vietnam subsidiary?

Our Vietnam operations were designed from the outset to comply with strict environmental regulations, including wastewater and waste management requirements.

We have established systems that meet European-level environmental standards, while also implementing safety and quality management based on Japanese standards, allowing us to operate while minimizing environmental risks. At the same time, compliance with environmental regulations remains an ongoing challenge, and we will continue to conduct

32 appropriate monitoring and make ongoing improvements.

Question 16: Regardless of your business performance, how would a continued depreciation of the yen to around ¥160 per U.S. dollar affect your business?

We have a high overseas sales ratio, making our business susceptible to foreign exchange fluctuations. In terms of foreign exchange sensitivity, a ¥1 change in the USD/JPY exchange rate affects sales by approximately ¥80–¥100 million and operating profit by approximately ¥30–¥40 million. In addition, foreign currency-denominated loans to our

Vietnamese subsidiary result in non-operating foreign exchange gains and losses. While we seek to mitigate these risks through forward exchange contracts and derivatives, our business remains subject to a certain degree of foreign exchange risk.

Note regarding this document

The earnings forecasts and forward-looking statements in this document are based on judgments made by the Company using currently available information and involve risks and uncertainties. Actual results may differ materially due to changes in economic conditions and market environments. Accordingly, the Company does not guarantee the achievement of these forecasts.

DAIICHIKIGENSO KAGAKU KOGYO CO., LTD.

4-4-9, Kitahama, Chuo-Ku, Osaka 541-0041, Japan https://www.dkkk.co.jp/english/contact/

Corporate Planning Division

For inquiries, please scan this code.

This document has been translated from the Japanese original for reference purposes only.

In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Jul. 28, 2026 Presentation IR seminar for listed Companies in Osaka (with transcripts) 4,398KB PDF

Our analyst

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FY3/2027 FY3/2026

FY3/2026 FY3/2027

FY3/2021 FY3/2022 FY3/2023 FY3/2024 FY3/2025 FY3/2026 FY3/2027