DIC : Notice Regarding Revision of the Forecasts for Financial Results and Dividends

ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT

This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

August 9, 2023

Company name

Representative	Kaoru Ino
	Representative Director
	President and CEO
	(Securities code: 4631)
Contact	Hirotaka Komine
	General Manager
	Corporate Communications Department
	(Tel: [phone])

Notice Regarding Differences between Forecasts and Actual Consolidated Operating

Results for the Six Months Ended June 30, 2023, Revision of Consolidated Operating Results Forecasts for Fiscal Year 2023, Dividends from Surplus and Revision of the Year-End Cash Dividends Forecast

DIC Corporation hereby announces the following differences between its consolidated operating results forecasts and actual operating results for the six months ended June 30, 2023, and the revision of its consolidated operating results forecasts for fiscal year 2023, ending December 31, 2023. Additionally, at a meeting of its Board of Directors on August 9, 2023, the Company resolved to pay dividends from surplus with a record date of June 30, 2023, as well as to revise its year -end cash dividends forecast for fiscal year 2023.

1. Differences between Forecasts and Actual Consolidated Operating Results for the Six Months Ended June 30, 2023, and Revision of Consolidated Operating Results Forecasts for Fiscal Year 2023

1. Differences between Forecasts and Actual Consolidated Operating Re sults for the Six Months Ended June 30, 2023

				Net income
	Net sales	Operating	Ordinary	attributable		Earnings
	income	income	to owners of		per share
				the parent
	Millions of	Millions of	Millions of	Millions of		Yen
Previous forecast	yen	yen	yen	yen
(A)	520,000	14,000	12,000	3,000	31.69
Actual result (B)	515,311	9,962	7,143	997	10.53
Change (B-A)	-4,689	-4,038	-4,857	-2,003
Change (%)	-0.9	-28.8	-40.5	-66.8
(Reference)
Six months ended	521,411	23,966	26,151	14,390	152.03
June 30, 2022

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1. Revision of Consolidated Operating Results Forecasts for Fiscal Year 2023

				Net income
	Net sales	Operating	Ordinary	attributable		Earnings
	income	income	to owners of		per share
				the parent
	Millions of	Millions of	Millions of	Millions of		Yen
Previous forecast	yen	yen	yen	yen
(A)	1,100,000	38,000	34,000	17,000	179.59
Revised forecast	1,060,000	25,000	20,000	4,000	42.26
(B)
Change (B-A)	-40,000	-13,000	-14,000	-13,000
Change (%)	-3.6	-34.2	-41.2	-76.5
(Reference)	1,054,201	39,682	39,946	17,610	186.05
Fiscal year 2022

(3) Reasons for Differences and Revision

In the six months ended June 30, 2023, shipments of high -value-added products, notably those in the Functional Products segment, were down, owing to sluggish conditions in the electronics market, and delays in completing inventory adjustments in the automo bile sector. As a consequence of this, combined with sagging shipments of pigments for coatings and for plastics, accounted for in the Color & Display segment, amid slowing economic growth in Europe, net sales, operating income, ordinary income and net income attributable to owners of the parent fell short of previous forecasts .

With a recovery in demand for high -value-added products, notably those in the Functional Products segment, and pigments likely to take time, consolidated net sales are expected to fall short of the previous forecast. As a result, operating income, ordinary income and net income attributable to owners of the parent are also expected to be below forecasts. In light of these factors, DIC has revised its consolidated operating results f orecasts for fiscal year 2023.

2. Dividends from Surplus (Interim Cash Dividends) and Revision of the Year -End Cash Dividends Forecast

1. Dividends from Surplus (Interim Cash Dividends)

		Most recent forecast	Fiscal year 2022
	Resolution	interim cash
	(May 15, 2023)
		dividends
Record date	June 30, 2023	June 30, 2023	June 30, 2022
Cash dividends per	¥50.00	¥50.00	¥50.00
share
Total dividends	¥4,739 million	-	¥4,739 million
Effective date	September 1, 2023	-	September 1, 2022
Source of dividends	Retained earnings	-	Retained earnings

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1. Revision of the Year-End Cash Dividends Forecast

				Annual cash dividends per share
		1st quarter-		Interim		3rd quarter-		Year-end		Total
		end			end
		Yen		Yen		Yen		Yen		Yen
Previous forecast		-	50.00			-	50.00	100.00
Revised forecast							-	30.00	80.00
Dividends to be paid in		-	50.00
fiscal year 2023
(Refence)
Dividends paid in fiscal		-	50.00			-	50.00	100.00
year 2022

(3) Reasons for Revision of Cash Dividends Forecast

DIC recognizes returning profits to its shareholders as a crucial management responsibility. Accordingly, the Company's basic policy is to ensure continuous, stable dividends by comprehensively considering consolidated operating performance, dividend payout ratio and other factors. In line with this policy, the Company carefully contemplated the difference between its forecasts and actual consolidated operating results for the six months ended June 30, 2023, and its decision to revise its consolidated operating results forecasts for fiscal year 2023, and resolved to lower its forecast for fiscal year -end cash dividends per share to ¥30.00, from ¥50.00. As a consequence, the Company expects to pay total annual cash dividends per share of ¥80.00.

DIC asks for the understanding of its shareholders as it presses ahead with measures to achieve an early recovery in its earnings.

- Ends -

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