ＤＩＣ（4631） – Q1 2022 Presentation Material

4631.T : Tokyo Stock ExchangeDIC CorporationConsolidated Financial Results FY2022: Three Months Ended March 31May 2022COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.11HighlightsFY2022 three months resultsNet sales◼¥251.0billionYoY ＋31.9％Consolidated net sales increased sharply, reflecting efforts to maintain firm shipments overall, as well as toadjust sales prices across all segments. In the Color & Display segment, the margin of improvement wasboosted by the addition of sales from the C&E pigments business (formerly BASF SE’s Colors & Effectsbusiness), which was notfiscal year 2021.Shipments of high-value-added products,including materials for electrical and electronics equipment andautomobiles, and most pigments, were firm, while shipments of materials for food packaging stagnatedtemporarily in the People’s Republic of China (PRC), owing to the imposition of pandemic lockdowns.included in the scope of consolidation in the first quarter ofOperating income declined, as efforts to adjust sales prices for certain products in the Packaging & Graphic andFunctional Products segments fell short. The C&E pigments business moved into the black, as the situationsurrounding shipment delays—caused by the fact that it took some time to build a logistics configurationfollowing the business’ integration—rallied.Operating income◼¥11.7billionYoY -16.1％FY2022 forecastsForecast for net saleshas been revised upward◼◼Owing to the progress of efforts to adjust sales prices to counter elevated costs for raw materials, DIC hasrevised its forecast for full-term consolidated net sales upward, to ¥1,040.0 billion.The Company’s forecast for full-term operating income remains unchanged at ¥54.0 billion.The fiscal year of all overseas and domestic companies in the DIC Group ends on December 31. This document presents consolidated results for the first quarter of fiscal year 2022, ended March 31, 2022.COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.22Quarterly trends in segment resultsNet sales(Billion yen)Operating income(Billion yen)Packaging & GraphicColor & DisplayFunctional ProductsOthers, Corporate and eliminationsProgress rate as per the full-year operating income forecast (54.0 billion yen)COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.Note: The figure above each graph bar includes Others and Corporate and eliminations and thus differs from the height of the bar.333M6M9MFY2022（％）21.7- – – 2021（％）29.156.969.389.4Consolidated statement of income*²Acquisition of the C&E pigments business*¹ EBITDA: Net income attributable to owners of the parent + Total income taxes + (Interest expenses – Interest income) + Depreciation and amortizationCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.44(Billion yen)20213 Months20223 MonthsChange% Change% Change ona local currencybaisisNet sales190.3251.0 60.7+31.9%+27.7%Cost of sales(145.0)(200.0) -55.0Selling, general and administrative expenses(31.3)(39.3) -8.0Operating income14.011.7 -2.2-16.1%-13.3%Operating margin7.3%4.7%- Interest expenses(0.2)(0.4) -0.2 Equity in earnings (losses) of affiliates0.20.2 -0.1 Foreign exchange gains (losses)0.40.8 0.4 Other, net0.40.1 -0.3 Ordinary income14.812.4 -2.4-16.2%ー Extraordinary income0.8- -0.8 Extraordinary losses(1.7)(0.4) 1.3Income before income taxes13.912.0 -1.9Income taxes(2.9)(4.2) -1.3Net income11.07.8 -3.2Net income attributable to non-controlling interests(0.8)(0.4) 0.4Net income attributable to owners of the parent10.27.4 -2.8-27.4%ーEBITDA*¹21.423.3 1.9+8.8%ーExtraordinary income and loss20213 Months20223 MonthsExtraordinary incomeGain on sales of subsidiaries’ and affiliates’ securities0.8-Extraordinary lossesLoss on disposal of non-current assets(0.5)(0.3)Severance costs(0.0)(0.1)Acquisition-related expenses*²(1.2)-■Average rate20213 Months20223 MonthsYEN/US$106.17117.03YEN/EUR127.88131.32Operating income variance◼◼◼The C&E pigments business moved into the black, as the situation surrounding shipment delays rallied.Overall shipments were down from the first quarter of fiscal year 2021, which saw a sharp year-on-year rebound as the impact of COVID-19 waned. However, the influence of this factor on the decline in operating income was minimal, thanks to firm shipments of high-value-added products.Despite ongoing efforts to adjust sales prices with the aim of passing on raw materials, logistics and energy costs, such attempts struggled to keep pace.14.020211Q+1.4C&E-0.3Sales volume &product mix-18.6Raw materials prices+16.7Sales prices-1.5Costs+0.1Forex& others（Billion yen）11.720221QCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.55Financial health *¹ Net D/E ratio: Net Interest-bearing debt / Shareholder’s equity*² Net D/C ratio: Net Interest-bearing debt / (Net Interest-bearing debt + Net assets)Increase attributable to a change in accounting standards requiring lease obligations to be included on the balance sheet: ¥11.1 billionCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.66(Billion yen)Dec 312021Mar 312022ChangeNet interest-bearing debt346.0397.051.1Sheareholder’s equity345.9366.820.9Net D/E ratio *¹(times)1.01.1 [Net D/C ratio *²][47.6%][49.8%]Equity ratio 32.3%29.5%BPS (Yen)3,654.613,875.55■Closing rateDec 312021Mar 312022YEN/US$115.10122.06Segment resultsCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.77Note: The C&E pigments business is incorporated into results for the Color & Display segment.Packaging & Graphic102.4120.918.5+ 18.0%+ 15.7%5.43.4-2.0-36.2%-25.0%5.3%2.9%Japan26.429.83.4+ 12.9%+ 12.9%1.40.8-0.6-44.0%-44.0%5.1%2.5%The Americas and Europe62.575.312.8+ 20.5%+ 18.7%3.22.1-1.1-35.0%-15.7%5.2%2.8%Asia and Oceania16.919.52.5+ 15.0%+ 6.1%0.90.6-0.4-40.1%-44.8%5.6%2.9%Eliminations(3.4)(3.7)-0.3–(0.1)0.00.1—-Color & Display28.866.237.5+ 130.2%+ 115.8%3.03.80.9+ 28.7%+ 28.0%10.4%5.8%Japan6.49.12.7+ 42.3%+ 42.3%1.51.50.0+ 0.1%+ 0.1%23.4%16.4%Overseas24.161.036.9+ 153.3%+ 135.0%1.52.40.9+ 62.0%+ 59.5%6.1%3.9%Eliminations(1.7)(3.8)-2.1–0.0(0.1)-0.1—-Functional Products66.674.27.5+ 11.3%+ 8.0%7.66.6-1.0-12.9%-15.2%11.4%8.9%Japan47.952.04.1+ 8.5%+ 8.5%4.74.3-0.4-8.6%-8.6%9.9%8.3%Overseas25.529.53.9+ 15.5%+ 6.6%3.02.3-0.7-23.6%-29.2%11.6%7.7%Eliminations(6.8)(7.3)-0.5–(0.1)0.00.1—-Others, Corporate and eliminations(7.6)(10.3)-2.8–(2.0)(2.1)-0.2—-Total190.3251.060.7+ 31.9%+ 27.7%14.011.7-2.2-16.1%-13.3%7.3%4.7%YEN/US$106.17117.03+ 10.2%106.17117.03+ 10.2%YEN/EUR127.88131.32+ 2.7%127.88131.32+ 2.7%（Billion yen）Operating incomeOperating margin20213 Months20223 MonthsChange% ChangeNet sales% Changeon a localcurrencybasis% Changeon a localcurrencybasis20213 Months20223 Months20213 Months20223 MonthsChange% ChangePackaging & GraphicNet sales• Segment sales rose, bolstered by sales price adjustments implemented to counter elevated raw materials costs. Sales of packaging inks, which account for approximately 70% of DIC’s printing inks portfolio, were up in volume terms.Operating income• Segment operating income declined, as efforts to adjust sales prices to pass on elevated raw materials costs struggled to keep pace.Operating income/marginSales of principal productsCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.202120228820213 Months20223 MonthsChange% Change% Changeon a localcurrencybasis20213 Months20223 MonthsChange% Change% Changeon a localcurrencybasis20213 Months20223 MonthsPackaging & Graphic102.4120.918.5+ 18.0%+ 15.7%5.43.4-2.0-36.2%-25.0%5.3%2.9%Japan26.429.83.4+ 12.9%+ 12.9%1.40.8-0.6-44.0%-44.0%5.1%2.5%The Americas and Europe62.575.312.8+ 20.5%+ 18.7%3.22.1-1.1-35.0%-15.7%5.2%2.8%Asia and Oceania16.919.52.5+ 15.0%+ 6.1%0.90.6-0.4-40.1%-44.8%5.6%2.9%Eliminations(3.4)(3.7)-0.3–(0.1)0.00.1—-（Billion yen）Net salesOperating incomeOperating margin5.45.15.55.63.45.3%4.7%5.0%4.7%2.9%１Q２Q３Q４Q1QOperating income(Billion yen)Operating margin(%)%ChangePackaging inks*+ 18%Publication inks*+ 10%Jet inks+ 11%Polystyrene+ 38%Multilayer films+ 14%Sales increased, bolstered by sales price adjustments on a global scale, although sales in the PRC decreased in volume termsas pandemic lockdowns caused shipments to stagnate.Sales in Japan declined as a sixth wave of COVID-19 infections caused domestic demand to languish. Nonetheless, efforts toadjust sales prices lifted global sales.Shipments were brisk for industrial applications, including outdoor signage (billboards and posters) and banners, as well as forcommercial printing applications such as direct mail.Sales rose sharply, despite dwindling demand from supermarkets for use in food packaging, as efforts to adjust sales pricesboosted unit prices.Sales volume was level, but sales rose, underpinned by efforts to adjust sales prices.Color & DisplayNet salesOperating income• Segment sales soared, owing to the addition of sales from the C&E pigments business, which resulted in a sharp increase in sales of pigments for coatings, plastics and cosmetics.• Segment operating income rose steeply. In addition to the fact that the C&E pigments business reported a profit, owing to an improvement in the situation surrounding shipment delays arising from the protracted process of building a logistics configuration following the business’ integration, this reflected efforts to adjust sales prices on a global scale.Operating income/marginSales of principal productsCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.20212022993.0 4.0 (3.8)0.8 3.8 10.4%13.2%Loss1.4%5.8%１Q２Q３Q４Q1QOperating income(Billion yen)Operating margin(%)20213 Months20223 MonthsChange% Change% Changeon a localcurrencybasis20213 Months20223 MonthsChange% Change% Changeon a localcurrencybasis20213 Months20223 MonthsColor & Display28.866.237.5+ 130.2%+ 115.8%3.03.80.9+ 28.7%+ 28.0%10.4%5.8%Japan6.49.12.7+ 42.3%+ 42.3%1.51.50.0+ 0.1%+ 0.1%23.4%16.4%Overseas24.161.036.9+ 153.3%+ 135.0%1.52.40.9+ 62.0%+ 59.5%6.1%3.9%Eliminations(1.7)(3.8)-2.1–0.0(0.1)-0.1—-（Billion yen）Net salesOperating incomeOperating margin%ChangePitments for coatings+ 270%plastics+ 360%printing inks+ 49%cosmetics+ 246%displays-1%Customer inventory adjustments prompted a temporary lull in shipments.specialty appications+ 59%Health food-29%Although turnover in Japan picked up, export delays pushed sales down.Sales increased, owing to the addition of sales from the C&E pigments business. Shipments were firm, led bypigments for automotive coatings.The addition of sales from the C&E pigments business boosted sales.The addition of sales from the C&E pigments business boosted sales.Sales increased, owing to the addition of sales from the C&E pigments business. A recovery in demand wasseen in the Americas and Europe, as well as in Asia.Sales rose, reflecting the addition of sales from the C&E pigments business. Pigments for packaging inkswere steady.Color & Display (supplementary information)Break down of 2022 three months results for the Color & Display segment (Billion yen)◼ Sales in the C&E pigments business exceeded predictions, thanks to an improvement in the situation surrounding shipment delays arising from the protracted process of building a logistics configuration and the elimination of the business’ order backlog.◼ Efforts in the Color & Display segment to adjust sales prices to pass on elevated raw materials cost are proceeding apace.◼ The assessment of surcharges to reflect increases in energy and logistics costs in sales prices was adopted. The system came into effect worldwide on April 1, 2022.COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.101020213M20223MChange% Change20213M20223MChange% ChangeColor & Display28.866.237.5+130.2%3.03.80.9+28.7%Existing Businesses28.830.51.7-3.02.4-0.6-C&E-35.835.8–1.41.4-Net salesOperating incomeFunctional ProductsNet salesapplications remained firm.• A resurgence of COVID-19 in the PRC impacted shipments of certain items, but those of products for automotive and digital Operating income• Segment operating income decreased, as ongoing efforts to adjust sales prices to pass on energy, logistics and raw materials cost increases fell short.Operating income/marginSales of principal productsIn digital materials, sales of ultraviolet (UV)-curable resins, industrial-use tapes and hollow-fiber membrane modules were robust.Sales of products for automotive applications were impacted by a slowdown in automobile production, but sales overall were firm. COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.20212022111120213 Months20223 MonthsChange% Change% Changeon a localcurrencybasis20213 Months20223 MonthsChange% Change% Changeon a localcurrencybasis20213 Months20223 MonthsFunctional Products66.674.27.5+ 11.3%+ 8.0%7.66.6-1.0-12.9%-15.2%11.4%8.9%Japan47.952.04.1+ 8.5%+ 8.5%4.74.3-0.4-8.6%-8.6%9.9%8.3%Overseas25.529.53.9+ 15.5%+ 6.6%3.02.3-0.7-23.6%-29.2%11.6%7.7%Eliminations(6.8)(7.3)-0.5–(0.1)0.00.1—-（Billion yen）Net salesOperating incomeOperating margin7.66.56.35.86.611.4%9.2%8.9%7.7%8.9%１Q２Q３Q４Q1QOperating income(Billion yen)Operating margin(%)%Change%Change+ 9%+ 1%Urethane resins+ 7%Industrial tapes+ 2%+ 15%+ 23%Waterborne resins+ 17%+ 19%UV-curable resins+ 14%Epoxy resinsPolyester resinsAcrylic resinsPolyphenylenesulfideHollow-fibermembraneFY2022 forecasts: Full-term operating results◼ Owing to the progress of efforts to adjust sales prices to counter elevated costs for raw materials, DIC has revised its forecast for full-term consolidated net sales upward. The Company’s forecast for full-term operating income remains unchanged. *² Operating income x (1–tax rate 28%) / (Net interest-bearing debt + Net assets)*³ Net D/E ratio: Interest-bearing debt / Shareholder’s equity*⁴ Net D/C ratio: Interest-bearing debt / (Interest-bearing debt + Net assets)*¹ EBITDA: Net income attributable to owners of the parent + Total income taxes + (Interest expenses – Interest income) + Depreciation and amortization COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.1212ROIC*²4.8%5.1%Net D/E ratio *³ (times)1.01.0 [Net D/C ratio *⁴][47.6%][48.7%]Annual dividends per share (Yen)100.0100.0Payout ratio216.8%33.8%20212022Forecasts(Billion yen)Net sales855.41,040.0+21.6%+16.4%950.0Operating income42.954.0+25.9%+23.0%54.0Operating margin5.0%5.2%－－5.7%Ordinary income43.853.5+22.3%53.5Net income attributable to owners of the parent4.428.0+541.4%28.0EPS (Yen)46.12295.81－295.81EBITDA*¹69.088.0+27.5%88.0Capital expenditure and investment168.283.0-50.6%83.0Depreciation and amortization38.144.0+15.6%44.0Average rateYEN/US$109.75121.00+10.3%110.00YEN/EUR129.73137.00+5.6%130.00% Changeon a localcurrency basisOld forecasts20212022Forecasts% ChangeFY2022 forecasts: First half operating results◼ Owing to the progress of efforts to adjust sales prices to counter elevated costs for raw materials, DIC has revised its forecast for first half consolidated net sales upward. The Company’s forecast for first half operating income remains unchanged. COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.1313(Billion yen)Net sales391.8510.0+30.2%465.0Operating income27.326.0-4.8%26.0Operating margin7.0%5.1%－5.6%Ordinary income28.225.5-9.7%25.5Net income attributable to owners of the parent16.014.0-12.7%14.0EPS (Yen)169.33147.91－147.91Average rateYEN/US$107.68119.00+10.5%110.00YEN/EUR129.63135.00+4.1%130.00Old forecasts20211st Half20221st HalfForecasts% ChangeFY2022 forecasts : Operating income variance◼ Forecasts for the C&E pigments business are net sales of ¥132.0 billion and operating income of ¥3.2billion, with contributing factors including the realization of new synergies.◼ Forecasts published on May 16, 2022, assume a West Texas Intermediate (WTI) price for crude oil of US$100.00-plus/barrel. Although further increases in raw materials costs are expected, efforts to respond by adjusting sales prices will continue. Accordingly, the forecast for operating income remains unchanged.（Billion yen）54.0+8.6C&E+4.0One-time costs associated with the acquisition of the C&E+8.4Sales volume &product mix-51.0Raw materials prices+46.2Sales prices-5.0Costs-0.1Forex& others42.92021COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.2022Forecasts1414FY2022 forecasts: Full-term segment results◼ Owing to the progress of efforts to adjust sales prices to counter elevated costs for raw materials, DIC has revised its forecast for full-term consolidated net sales upward. The Company’s forecast for full-term operating income remains unchanged. COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.1515Packaging & Graphic439.8505.465.6+ 14.9%+ 11.9%21.624.02.4+ 11.0%+ 14.1%4.9%4.7%Japan114.7128.013.4+ 11.7%+ 11.7%4.85.70.9+ 17.6%+ 17.6%4.2%4.5%The Americas and Europe265.1305.240.2+ 15.1%+ 12.4%13.213.80.6+ 4.6%+ 12.0%5.0%4.5%Asia and Oceania73.186.513.4+ 18.3%+ 9.1%3.84.50.7+ 19.2%+ 10.9%5.2%5.2%Eliminations(13.0)(14.4)-1.3–(0.2)(0.1)0.2—-Color & Display167.2258.491.2+ 54.6%+ 41.9%4.016.012.1+ 305.1%+ 283.2%2.4%6.2%Japan32.636.53.8+ 11.7%+ 11.7%6.97.20.3+ 4.4%+ 4.4%21.1%19.7%Overseas145.7238.292.4+ 63.4%+ 48.3%(2.8)8.811.6Into the blackInto the black-3.7%Eliminations(11.2)(16.2)-5.0–(0.2)0.00.2—-Functional Products283.3320.236.9+ 13.0%+ 8.7%26.225.0-1.2-4.6%-8.5%9.2%7.8%Japan201.3213.312.0+ 6.0%+ 6.0%16.114.4-1.7-10.7%-10.7%8.0%6.8%Overseas108.3133.625.2+ 23.3%+ 11.8%10.110.60.6+ 5.5%-4.8%9.3%7.9%Eliminations(26.3)(26.7)-0.4–0.0(0.0)-0.0—-Others, Corporate and eliminations(34.9)(44.1)-9.1–(8.9)(11.0)-2.1—-Total855.41,040.0184.6+ 21.6%+ 16.4%42.954.011.1+ 25.9%+ 23.0%5.0%5.2%YEN/US$109.75121.00+ 10.3%109.75121.00+ 10.3%YEN/EUR129.73137.00+ 5.6%129.73137.00+ 5.6%Net sales（Billion yen）Operating incomeOperating margin20212022Forecast% Changeon a localcurrencybasis20212022ForecastChange% Change% Changeon a localcurrencybasis20212022ForecastChange% ChangeMajor topics (January to March 2022)News Releaseshttps://www.dic-global.com/en/news/2022/DIC group acquires Italian adhesives and polymers manufacturer SAPICI S.p.A. and its holding companyDIC Kyushu Polymer Co., Ltd., completes new solar-powered zero energy building (ZEB) to house its offices DIC announces new vision statement and DIC Vision 2030 long-term management planJanFebFebMarDIC adopts system for levying surcharges on pigment products; the system is scheduled to come into effect worldwide on April 1, 2022• System reflects the fact that transport and energy costs have increased beyond the point where independent efforts alone are sufficient• Shipping surcharges (levied in response to haulage cost increases) and energy surcharges (levied in response to energy price increases) will be reviewed quarterly MarDIC earns White 500 certification for the fifth consecutive yearMarDIC declares support for the Ministry of Economy, Trade and Industry’s GX League Basic Concept MarDIC is recognized as a Nadeshiko Brand for the fourth consecutive yearMarDIC concludes positive impact finance agreementMarDIC expands lineup of mono-material products for use in recyclable packaging materialsCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.1616Business segments and principal productsPackaging & GraphicColor & DisplayFunctional ProductsNote: Fiscal year 2021 actualNet sales¥439.8 bnOperating income /Margin¥21.6 bn / 4.9%Net sales¥167.2 bnOperating income /Margin¥4.0 bn / 2.4%Net sales¥283.3 bnOperating income /Margin¥26.2 bn / 9.2%Packaging materials that bring safety and peace of mindColor and display materials that make life colorfulFunctional products that add comfortPackaging inksPigments for displayFilmInkFilmAdhesivePackaging adhesives←Polystyrene↓Multilayer filmsPackaging materialsPigments for cosmeticsPigments for specialty applicationsAgricultureBuilding materialsIndustrial tapes◆ Digital materials (used principally in electrical and electronics equipment and displays)◆UV-curable resinsEpoxy resinsHollow-fiber membrane modules◆ Industrial materials (used primarily in mobility solutions (vehicles, etc.))◆Waterborne resinsAcrylic resinsUrethane resinsPolyester resinsPPS compoundsidedvorp leuaVstcudorp liapcnirPJet inksFor outdoor signageNatural colorantsFor bannersPigments for coatingsPigments for plasticsPigments for inksCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.1717Integrate Colors & Effects Business (Reference)◼ Expedite Value Transformation by realizing synergies● Capitalize on unparalleled development capabilities arising from the fusion of the two companies’ technology and intellectual property● Improve operating efficiency through the expansion of operating scaleBusiness Scale and Profitability by ApplicationProfitabilityProducts that reflect technological synergiesDevelopment of products that leverage the Colors & Effects business’ prowess in the area of materialsDisplaysPigments for LiDAR signal coatings used in self-driving vehiclesCosmeticsSpecialty productsProducts that reflect improved operating efficiency attributable to the expansion of operating scalePlasticsCoatingsExpansion of product families and applicationsDigital productsCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.InksPigments for heat-blocking coatingsBusiness scale1818Consolidated balance sheet (Reference)COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.1919(Billion yen)Dec 312021Mar 312022ChangeCurrent assets542.1676.5 134.4Property, plant and equipment307.7335.4 27.7Intangible assets52.360.7 8.4Investments and other assets169.4171.8 2.4Total assets1,071.51,244.4 173.0Current liabilities305.6405.6 100.0Non-current liabilities384.9438.3 53.4Total liabilities690.5843.9 153.4Shareholders’ equity403.9406.3 2.4Accumulated other comprehensive income(58.0)(39.5) 18.5[Foreign currency translation adjustment][(55.5)][(34.6)][20.9]Non-controlling interests35.133.7 -1.4Total net assets381.0400.5 19.5Total liabilities and net assets1,071.51,244.4 173.0Interest-bearing debt384.2520.5 136.3Cash and deposits38.3123.4 85.2Net interest-bearing debt346.0397.0 51.1Consolidated statement of cash flows (Reference)Note: Consolidated statement of cash flows fall outside the scope of required disclosure. Accordingly, these figures are provided for reference only.COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.2020(Billion yen)20213 Months20223 MonthsChangeCash flows from operating activities19.8(8.0)-27.8 Cash flows from investing activities3.5(20.5)-24.0 Cash flows from financing activities99.5109.810.2 Cash and cash equivalents at end of the period167.1122.6-44.5 Free cash flow23.3(28.5)-51.8 Increase (decrease) in working capital6.8(23.1)-29.9 Capital expenditure and investment8.624.716.2 Depreciation and amortization8.111.33.2 Historical performance data (Reference)Operating resultsFinancial health* Adjusted to reflect the impact of the changes in the fiscal year-end* Net D/E ratio: Interest-bearing debt / Shareholder’s equityCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.2121Historical performance data (Reference)ROIC** Operating income x (1–tax rate 28%) / (Net interest-bearing debt + Net assets)EBITDA**EBITDA: Net income attributable to owners of the parent+ Total income taxes+ (Interest expenses – Interest income) + Depreciation and amortizationShareholder returns*Capital expenditure and investment, operating cash flows216.8%Yield(%)**2.41.92.12.82.83.73.33.83.5*** Adjusted to reflect the impact of the consolidation of shares of common stock *** Dividend yield: Annual dividends / Closing price per share at fiscal year-endCOPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.2222Disclaimer Regarding Forward-Looking StatementsStatements herein, other than those of historical fact, are forward-looking statementsthereflect management’s projections based on information available as ofthatpublication date. These forward-looking statements are subjectto risks anduncertainties that could cause actual results to differ materially from such statements.These risks and uncertainties include, but are not limited to, economic conditions inJapan and overseas, market trends, raw materials prices, interest rate trends, currencyexchange rates, conflicts, litigations, disasters and accidents, as well as the possibilitythe Company will incur special losses related to the restructuring of its operations.COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.2323#1COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.2424