Espec : Notice of Differences between Consolidated Financial Forecast Figures & Financial Results for Fiscal 2020 & Resolution of Dividend of Surplus

May 14, 2021

Listed Company Name: ESPEC CORP.

Representative: Masaaki Ishida, President

Listed Stock Exchange:

Tokyo Stock Exchanges, First Section

Securities Code: 6859

Contact: Keiji Oshima,

Chief Officer of Corporate Control Headquarters

Tel: [phone]

Notice of Differences between Consolidated Financial Forecast Figures

and Financial Results for Fiscal 2020 and Resolution of Dividend of Surplus

ESPEC CORP. hereby announces the following differences between the consolidated financial forecast figures for fiscal 2020, the year ended March 31, 2021 announced on February 10, 2021 and the financial results announced today.

Moreover, the Company resolved at a Board of Directors meeting held today to distribute a dividend of surplus with a record date of March 31, 2021.

Description

1. Differences between consolidated financial forecast figures and financial results Differences between consolidated financial forecast figures and financial results for fiscal 2020 (from April 1, 2020 to March 31, 2021)

				Profit		Net
		Operating	Ordinary	attributable
	Net Sales		Income
	Income	Income	to owners
			Per Share
				of parent
Previous Forecast (A)	Million Yen	Million Yen	Million Yen	Million Yen		Yen
(February 10, 2021)	37,500	2,000	2,100	1,400	61.23
Results (B)	38,668	2,572	2,840	1,961	85.79
Difference (B-A)	1,168	572	740	561
Difference as Percentage (%)	3.1	28.6	35.2	40.1
(Reference)
Results for Previous Period	42,443	3,742	3,933	2,818	123.26
(Fiscal Year Ended March
2020)

Reason for difference

With regard to the consolidated results for fiscal 2020, results exceeded previous forecasts despite impact from the spread of the novel coronavirus disease (COVID-19), with net sales increasing more than initially expected and cost-cutting efforts improving profit.

2. Resolution of dividend of surplus Details of dividend of surplus

		Most Recent Dividend	Results for Previous
	Resolution	Forecast (Announced on
	Period
		February 10, 2021)
Record Date	March 31, 2021	March 31, 2021	March 31, 2020
Dividend per	Yen	Yen	Yen
share	41.00	38.00	46.00
Total Dividend	Million Yen		Million Yen
Amount	945		1,060
Effective Date	June 24, 2021		June 24, 2020
Source of	Retained earnings		Retained earnings
Dividend

Reasons for the revisions

The company decides dividends in consideration of continuity and consolidated dividend payout ratio, and we regard the return of profits to shareholders as one of our priority management challenges.

As mentioned above, the consolidated results for fiscal 2020 surpassed previously announced forecast figures. Therefore, the Company plans to increase the year-end dividend by 3 yen per share from the previous forecast to 41 yen, which combined with the interim dividend of 10 yen would result in an annual dividend of surplus of 51 yen.

The Company plans to submit this proposal to the Ordinary General Meeting of Shareholders scheduled for June 23, 2021.

Note: It should be noted that the above financial forecasts were compiled based on the management's reasonable assessment of the information available at the time of the compilation, and may change due to factors that may arise in the future.