Consolidated Financial Results FY2017: Three … · 1 May 2017 Consolidated Financial Results...

1

May 2017

Consolidated Financial Results

FY2017: Three Months Ended March 31

Securities Code：4631

Contents

COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.1

・Quarterly trends in segment results (Reference) 2

・Summary of financial results 3

・Segment results 4

Printing Inks 5

Fine Chemicals 6

Polymers 7

Compounds 8

Application Materials 9

・Consolidated balance sheet 10

・Consolidated statement of income 11

・Consolidated statement of cash flows 12

・Full-year forecasts 13

・Full-year segment results forecasts 14

・Reference

Principal products and initiatives by segment 15, 16

Historical performance data 17, 18

Disclaimer Regarding Forward-Looking StatementsStatements herein, other than those ofhistorical fact, are forward-looking statementsthat reflect management’s projections basedon information available as of the publicationdate. These forward-looking statements aresubject to risks and uncertainties that couldcause actual results to differ materially fromsuch statements. These risks and uncertaintiesinclude, but are not limited to, economicconditions in Japan and overseas, markettrends, raw materials prices, interest ratetrends, currency exchange rates, conflicts,litigations, disasters and accidents, as well asthe possibility the Company will incur speciallosses related to the restructuring of itsoperations.

The fiscal year of DIC Corporation and itsdomestic and overseas consolidatedsubsidiaries ends on December 31. Thisdocument presents consolidated results forthe first quarter of fiscal year 2017,comprising the accounts for the three monthsended March 31, 2017.

12.5 12.8 14.2 13.9 15.1

15.3 15.0 15.5 14.6 15.7

44.3 46.9 45.4 43.6 47.6

32.4 34.3 33.4

31.5 30.9

94.3 89.9 91.3 87.4

92.2

-10.6 -9.9 -10.3 -9.2 -9.6

188.2 189.0 189.5

181.8

191.9

0.3 0.8 0.6 0.5 0.51.3 0.8 1.5

1.0 1.2

4.5 4.54.9

4.95.3

3.04.2

4.03.9

3.5

4.3

4.04.0 5.2 4.9

-1.1 -1.2 -1.2 -1.3 -1.5

12.3

13.113.8

14.2 13.9

1Q

2016 2017

2Q

2016 2017

3Q

2016 2017

4Q

2016 2017

1Q

2016 2017

2Q

2016 2017

3Q

2016 2017

4Q

2016 2017

Quarterly trends in segment results (Reference)

COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.

Net sales Operating income(Billion yen)

(Billion yen)

Others, Corporate and eliminationsApplication MaterialsPolymersFine ChemicalsPrinting Inks Compounds

2

Progress rate as per the full-year operating income forecasts

1Q 2Q 3Q 4Q

2017（％） 22.6

2016（％） 22.9 48.3 74.7 100.3

Summary of financial results


Operating results Financial health

3

Capital expenditure and investment

(Billion yen) 2016 2017

1Q 1QLocal currency

basis

Net sales 188.2 189.0 +0.4% +3.2%

Operating income 12.3 13.1 + 6.4% + 11.6%

Operating margin 6.6% 6.9% －－

Ordinary income 12.1 13.3 + 9.7% －

Net income* 6.9 8.8 +28.7% －

EPS** (Yen) 72.42 93.24

Average rate USD/YEN 116.55 113.64

EUR/USD 1.11 1.07

Change (Billion yen) 2016

End

2017

1Q EndChange

Interest-bearing debt 241.3 303.3 62.1

Net interest-bearing debt 224.0 243.5 19.4

Net assets 307.0 303.5 -3.5

D/C ratio *** 44.0% 50.0% －

BPS (Yen) 2,938.12 2,901.11

Closing rate (USD/YEN) 116.69 111.87

(Billion yen) 2016

1Q

2017

1QChange

6.3 34.4 28.1

9.4 7.5 -1.9


Depreciation and amortization

・Capital expenditure and investment: Increased, owing to

investment in TAIYO HOLDINGS CO., LTD. and others・Interest-bearing debt: Temporary increase to secure funds for

equity investments and liquidity on hand

* Net income attributable to owners of the parent

** Adjusted to reflect the impact of the consolidation of shares of common stock

***D/C ratio: Interest-bearing debt / (Interest-bearing debt + Net assets)

Net

Income*・Sharp increase attributable to decline in extraordinary loss,

among others

・Draw to a close of planned rationalization of publishing inks

businesses in the Americas and Europe

Ordinary

income・Up, owing to improved financial position

Operating

income・Improved product mix

・Rationalization efforts

・Increase in raw materials prices

・Yen appreciation and the depreciation of emerging

economy currencies

Net sales

・Yen appreciation and the depreciation of emerging

economy currencies

・Flagging product prices in the previous fiscal year

・Generally firm shipments

Segment results


（Billion yen）

2016 2017 2016 2017 2016 2017

1Q 1QLocal

currency

basis

1Q 1QLocal

currency

basis

1Q 1Q

Printing Inks 94.3 89.9 -4.4 -4.6% -0.9% 4.3 4.0 -0.3 -7.1% -3.7% 4.6% 4.5%

Japan 19.8 18.9 -0.9 -4.5% -4.5% 1.0 1.1 0.1 + 1.9% + 1.9% 5.2% 5.6%

The Americas and Europe 61.4 57.9 -3.5 -5.7% -0.6% 2.1 2.0 -0.1 -7.6% -1.9% 3.5% 3.4%

Asia and Oceania 15.4 15.2 -0.2 -1.4% + 2.0% 1.1 1.0 -0.1 -12.2% -10.5% 7.0% 6.3%

Eliminations (2.4) (2.2) 0.2 - - 0.1 0.0 -0.1 - - - -

Fine Chemicals 32.4 34.3 1.9 + 5.8% + 8.3% 3.0 4.2 1.2 + 40.6% + 53.3% 9.2% 12.3%

Japan 9.0 10.5 1.5 + 16.7% + 16.7% 1.4 1.9 0.5 + 37.3% + 37.3% 15.3% 18.0%

Overseas 26.1 27.7 1.6 + 5.9% + 9.4% 1.6 2.3 0.7 + 38.8% + 64.3% 6.2% 8.1%

Eliminations (2.7) (3.9) -1.2 - - (0.0) 0.1 0.1 - - - -

Polymers 44.3 46.9 2.6 + 6.0% + 7.0% 4.5 4.5 -0.0 -0.2% + 1.9% 10.2% 9.6%

Japan 33.2 35.1 1.9 + 5.5% + 5.5% 2.6 3.3 0.7 + 23.7% + 23.7% 7.9% 9.3%

Overseas 12.3 13.6 1.3 + 10.7% + 14.9% 1.9 1.2 -0.7 -33.5% -31.6% 15.3% 9.2%

Eliminations (1.3) (1.8) -0.5 - - (0.0) (0.0) -0.0 - - - -

Compounds 15.3 15.0 -0.3 -2.0% + 1.4% 1.3 0.8 -0.5 -39.4% -34.3% 8.6% 5.3%

Japan 9.9 9.5 -0.4 -3.9% -3.9% 0.7 0.4 -0.3 -50.1% -50.1% 7.4% 3.8%

Overseas 8.7 8.4 -0.3 -3.0% + 3.3% 0.6 0.4 -0.2 -30.1% -15.7% 7.0% 5.1%

Eliminations (3.2) (2.8) 0.4 - - (0.0) 0.0 0.0 - - - -

Application Materials 12.5 12.8 0.3 + 1.8% + 2.7% 0.3 0.8 0.5 2.6 times 2.7 times 2.3% 5.9%

Japan 11.9 12.1 0.2 + 1.3% + 1.3% 0.3 0.7 0.4 2.1 times 2.1 times 2.7% 5.7%

Overseas 2.2 2.4 0.2 + 12.0% + 18.4% (0.0) 0.1 0.1 - - -1.0% 3.8%

Eliminations (1.6) (1.7) -0.1 - - (0.0) (0.0) -0.0 - - - -

Others, Corporate and eliminations (10.6) (9.9) 0.7 - - (1.1) (1.2) -0.1 - - - -

Total 188.2 189.0 0.8 + 0.4% + 3.2% 12.3 13.1 0.8 + 6.4% + 11.6% 6.6% 6.9%

USD/YEN 116.55 113.64 116.55 113.64

EUR/USD 1.11 1.07 1.11 1.07

Change Change

% Change

Net sales Operating income

% Change

Operating margin

2016 2017 2016 2017 2016 2017

1Q 1QLocal

currency

basis

1Q 1QLocal

currency

basis

1Q 1Q

Printing Inks 94.3 89.9 -4.4 -4.6% -0.9% 4.3 4.0 -0.3 -7.1% -3.7% 4.6% 4.5%

Japan 19.8 18.9 -0.9 -4.5% -4.5% 1.0 1.1 0.1 + 1.9% + 1.9% 5.2% 5.6%

The Americas and Europe 61.4 57.9 -3.5 -5.7% -0.6% 2.1 2.0 -0.1 -7.6% -1.9% 3.5% 3.4%

Asia and Oceania 15.4 15.2 -0.2 -1.4% + 2.0% 1.1 1.0 -0.1 -12.2% -10.5% 7.0% 6.3%

Eliminations (2.4) (2.2) 0.2 - - 0.1 0.0 -0.1 - - - -

（Billion yen） Net sales Operating income Operating margin

Change

% Change

Change

% Change

Printing Inks


• Although shipments of packaging inks

advanced, sales in North America and Europe

were flat, with causes including waning demand

for news inks.

• Sales in Central and South America rose,

buoyed by robust shipments of packaging inks.

• Overall sales in the Americas and Europe were

essentially level in local currency terms, but

declined after translation, hampered by factors

such as foreign currency fluctuations.

• Sales of packaging inks benefited from firm

shipments. Nonetheless, overall sales in Japan

decreased, reflecting factors such as the

erosion of sales prices in the previous fiscal

year and diminished demand for publishing inks

and news inks.

Net sales

Operating income

• Despite the ongoing implementation of

rationalization measures, operating income

decreased, reflecting sales results and

increases in raw materials prices, among others.

• While shipments of packaging inks were solid, sales

in the PRC were pushed down by such factors as

flagging demand for publishing inks and news inks

and other factors.

• In Southeast Asia, sales were up in all product

categories.

• Sales in Oceania fell, with causes including fading

demand for news inks.

• Sales in India increased, bolstered by brisk

shipments of publishing inks and packaging inks.

• Overall sales in Asia and Oceania were up in local

currency terms, but down after translation, owing to

foreign currency fluctuations.

• Operating income edged up. Reasons for this

result included cost reductions and an improved

product mix.

Japan The Americas and Europe Asia and Oceania

Net sales

Operating income

Net sales

Operating income

Segment results

• Operating income declined, a consequence of rising

prices for raw materials and other factors.

2016 2017 2016 2017 2016 2017

1Q 1QLocal

currency

basis

1Q 1QLocal

currency

basis

1Q 1Q

Fine Chemicals 32.4 34.3 1.9 + 5.8% + 8.3% 3.0 4.2 1.2 + 40.6% + 53.3% 9.2% 12.3%Japan 9.0 10.5 1.5 + 16.7% + 16.7% 1.4 1.9 0.5 + 37.3% + 37.3% 15.3% 18.0%

Overseas 26.1 27.7 1.6 + 5.9% + 9.4% 1.6 2.3 0.7 + 38.8% + 64.3% 6.2% 8.1%Eliminations (2.7) (3.9) -1.2 - - (0.0) 0.1 0.1 - - - -


Change

% Change

Change

% Change

• Segment operating income was up substantially, underpinned by an

improved product mix, among others.

Fine Chemicals


Net sales

Operating income

Sales of principal products

Segment results

• In pigments, sales were lifted by a steep increase in shipments of

functional pigments, including those for color filters and cosmetics.

• Sales of TFT LCs rose substantially, reflecting favorable shipments

and the fact that the corresponding period of the previous fiscal year

was a transitional period between new product releases.

• These factors supported higher segment sales.

% change

Y on Y

Liquid crystal (LC) materials + 64%

Functional pigments + 12%

Other pigments -3%

2016 2017 2016 2017 2016 2017

1Q 1QLocal

currency

basis

1Q 1QLocal

currency

basis

1Q 1Q

Polymers 44.3 46.9 2.6 + 6.0% + 7.0% 4.5 4.5 -0.0 -0.2% + 1.9% 10.2% 9.6%Japan 33.2 35.1 1.9 + 5.5% + 5.5% 2.6 3.3 0.7 + 23.7% + 23.7% 7.9% 9.3%

Overseas 12.3 13.6 1.3 + 10.7% + 14.9% 1.9 1.2 -0.7 -33.5% -31.6% 15.3% 9.2%Eliminations (1.3) (1.8) -0.5 - - (0.0) (0.0) -0.0 - - - -


Change

% Change

Change

% Change

• Notwithstanding the aforementioned sales results, segment operating

income remained on a par.

• Factors behind this result included soaring raw materials prices.

• Sales in Japan rose, bolstered by increased shipments of high-value-

added products, polystyrene and other products.

• Sales overseas were up sharply, thanks to generally firm shipments.

• For these and other reasons, segment sales advanced.

Polymers


Operating income

Net sales Sales of principal products

Segment results

% change

Y on Y

Waterborne resins + 10%

Saturated polyester resins + 1%

Acrylic resins + 3%

UV-curable resins -3%

Polyurethane resins -1%

Epoxy resins + 3%

Unsaturated polyester resins + 1%

Polystyrene + 31%

• Segment operating income fell, with causes including sales results and

costs associated with advanced investments.

• Despite healthy shipments, sales of polyphenylene sulfide (PPS)

compounds were flat, owing to weaker sales prices in the previous

fiscal year and foreign currency fluctuations.

• Sales of jet inks decreased, reflecting the negative impact of foreign

currency fluctuations.

• Owing to these and other factors, sales were largely level in local

currency terms, but slipped after translation as a consequence of

foreign currency fluctuations, among others.

Compounds


Operating income

Net sales Sales of principal products

Segment results

2016 2017 2016 2017 2016 2017

1Q 1QLocal

currency

basis

1Q 1QLocal

currency

basis

1Q 1Q

Compounds 15.3 15.0 -0.3 -2.0% + 1.4% 1.3 0.8 -0.5 -39.4% -34.3% 8.6% 5.3%Japan 9.9 9.5 -0.4 -3.9% -3.9% 0.7 0.4 -0.3 -50.1% -50.1% 7.4% 3.8%

Overseas 8.7 8.4 -0.3 -3.0% + 3.3% 0.6 0.4 -0.2 -30.1% -15.7% 7.0% 5.1%Eliminations (3.2) (2.8) 0.4 - - (0.0) 0.0 0.0 - - - -


Change

% Change

Change

% Change

% change

Y on Y

PPS compounds + 4%

Jet inks -9%

Plastic colorants -3%

• Sales rose, thanks to increased shipments of hollow-fiber membrane

modules and health foods, as well as to other factors.

• Segment operating income soared, spurred by an improved product

mix and efforts to reduce costs, among others.

Application Materials


Sales of principal products

Operating income

Net sales

Segment results

2016 2017 2016 2017 2016 2017

1Q 1QLocal

currency

basis

1Q 1QLocal

currency

basis

1Q 1Q

Application Materials 12.5 12.8 0.3 + 1.8% + 2.7% 0.3 0.8 0.5 2.6 times 2.7 times 2.3% 5.9%Japan 11.9 12.1 0.2 + 1.3% + 1.3% 0.3 0.7 0.4 2.1 times 2.1 times 2.7% 5.7%

Overseas 2.2 2.4 0.2 + 12.0% + 18.4% (0.0) 0.1 0.1 - - -1.0% 3.8%Eliminations (1.6) (1.7) -0.1 - - (0.0) (0.0) -0.0 - - - -


Change

% Change

Change

% Change

% change

Y on Y

Industrial adhesive tapes -5%

Coextruded multilayer films -2%

Hollow-fiber membrane modules + 16%

Health foods + 19%

Consolidated balance sheet


(Billion yen) 2016

End

2017

1Q EndChange

Current assets 398.7 434.9 36.2

Property, plant and equipment 226.7 225.6 -1.1

Intangible assets 8.9 8.7 -0.2

Investments and other assets 130.5 153.4 22.9

Total assets 764.8 822.7 57.9

Current liabilities 265.3 305.1 39.8

Non-current liabilities 192.5 214.1 21.6

Total liabilities 457.8 519.2 61.4

Shareholders' equity 349.0 352.1 3.1

Accumulated other comprehensive income (70.4) (77.1) -6.7

[Foreign currency translation adjustment] [(48.6)] [(57.1)] [-8.5]

Non-controlling interests 28.5 28.5 0.0

Total net assets 307.0 303.5 -3.5

Total liabilities and net assets 764.8 822.7 57.9

Closing rate (USD/YEN) 116.69 111.87

Shareholders' equity to total assets 36.4% 33.4%


Cash and deposits 17.2 59.9 42.6

・Temporary increase to secure funds for equity investments, as well as liquidity on hand

• Decline in extraordinary loss

• Draw to a close of rationalization measures

in the publishing inks businesses in North

America and Europe implemented under

DIC108, the DIC Group’s medium-term

management plan

Consolidated statement of income


(Billion yen) 2016

1Q

2017

1QChange

Net sales 188.2 189.0 0.8

Cost of sales 143.6 144.7 1.1

32.3 31.2 -1.1

Operating income 12.3 13.1 0.8

Interest expenses (0.8) (0.5) 0.3

Equity in earnings of affiliates 0.7 0.8 0.1

Foreign exchange gains (losses) (0.4) (0.2) 0.3

Other, net 0.2 (0.1) -0.3

Ordinary income 12.1 13.3 1.2

Extraordinary income 0.1 - -0.1

Extraordinary loss (3.2) (0.8) 2.4

Income before income taxes 8.9 12.4 3.5

Income taxes (1.4) (2.9) -1.5

Net income 7.6 9.5 2.0

(0.7) (0.7) 0.0

6.9 8.8 2.0


EUR/USD 1.11 1.07

Selling, general and administrative

expenses

Net income attributable to non-

controlling interests

Net income attributable to owners

of the parent

Extraordinary income and loss

2016

1Q

2017

1Q

Extraordinary income

Gain on bargain purchase 0.1 -

Extraordinary loss

Loss on disposal of non-

current assets(2.2) (0.6)

Severance costs (0.4) (0.2)

Provision of allowance for

doubtful accounts(0.6) -

Consolidated statement of cash flows


(Billion yen) 2016

1Q

2017

1QChange

Cash flows from operating activities 22.1 21.0 -1.1

Cash flows from investing activities (10.7) (42.0) -31.2

Cash flows from financing activities 4.3 57.8 53.5

Cash and cash equivalents at end of period 27.7 51.3 23.5

Free cash flow 11.4 (21.0) -32.4

Increase (decrease) in working capital 13.9 5.1 -8.7

Capital expenditure and investment 6.3 34.4 28.1

Depreciation and amortization 9.4 7.5 -1.9

Note: Consolidated statement of cash flows fall outside the scope of required disclosure. Accordingly, these figures are provided for reference only.

・Cash flows from investing activities: Increase in capital expenditure and investment, owing to investment in

TAIYO HOLDINGS and others

・Cash flows from financing activities: Temporary increase to secure funds for equity investments and liquidity

・ on hand

Full-year forecasts


Business

performance


Figures in squared parentheses are those published in February 2017.

Forecasts: Revised based on the trend in currency exchange rates

Bolstered by increased shipments, the expansion of businesses expected to drive growth and efforts to rationalize operations, operating

income is expected to reach a record high for the second consecutive year

Financial health

* Net income attributable to owners of the parent

** Adjusted to reflect the impact of the consolidation of shares of common stock

***D/C ratio: Interest-bearing debt / (Interest-bearing debt + Net assets)

(Billion yen)

Local

currency

basis

Net sales 751.4 790.0 +5.1% +5.2%

[770.0]

Operating income 54.2 58.0 +7.0% +9.3%

Operating margin 7.2% 7.3% －－

Ordinary income 55.8 58.0 +3.9% －

Net income* 34.8 37.5 +7.9% －

EPS (Yen)** 366.72 395.57


EUR/USD 1.11 1.07

ROE 12.9% 13.1%

100.0 120.0

Payout ratio 27.3% 30.3%

Annual dividends per share (Yen)**

Change2016

Actual

2017

Forecast

(Billion yen) 2016

Actual

2017

ForecastChange

32.1 65.0 32.9

32.4 33.0 0.6Depreciation and amortization


(Billion yen) 2016

End

2017End

ForecastChange


Net assets 307.0 324.0 17.0

D/C ratio *** 44.0% 43.6% －

Local

currency

basis

377.7 390.0 +3.3% +5.5%

[385.0]

26.1 28.0 +7.4% +10.9%

6.9% 7.2% －－

26.7 28.0 +4.9% －

17.0 18.5 +9.0% －

178.98 195.15

112.49 112.58

1.12 1.07

Change2016

1st Half

Actual

2017

1st Half

Forecast

Full-year segment results forecasts


Printing Inks 365.2 379.3 14.1 + 3.9% + 4.2% 18.4 19.6 1.2 + 6.8% + 8.4% 5.0% 5.2%

Japan 79.8 78.4 -1.4 -1.7% -1.7% 5.1 4.6 -0.5 -10.1% -10.1% 6.4% 5.8%

The Americas and Europe 232.7 241.2 8.5 + 3.6% + 4.7% 8.4 9.5 1.1 + 11.9% + 16.1% 3.6% 3.9%

Asia and Oceania 61.6 68.5 6.9 + 11.2% + 9.4% 4.8 5.5 0.7 + 14.3% + 12.4% 7.9% 8.1%

Eliminations (8.9) (8.7) 0.2 - - (0.0) 0.1 0.1 - - - -

Fine Chemicals 128.2 134.7 6.5 + 5.1% + 4.6% 14.4 15.2 0.8 + 5.4% + 10.5% 11.3% 11.3%

Japan 41.3 44.0 2.7 + 6.4% + 6.4% 7.5 8.0 0.5 + 7.4% + 7.4% 18.1% 18.3%

Overseas 101.1 105.4 4.3 + 4.2% + 3.5% 7.1 7.2 0.1 + 2.1% + 12.7% 7.0% 6.9%

Eliminations (14.3) (14.6) -0.3 - - (0.1) (0.1) 0.0 - - - -

Polymers 180.9 198.3 17.4 + 9.6% + 9.4% 19.6 21.0 1.4 + 6.8% + 6.7% 10.9% 10.6%

Japan 136.4 145.5 9.1 + 6.7% + 6.7% 12.9 14.5 1.6 + 12.6% + 12.6% 9.5% 10.0%

Overseas 50.1 58.9 8.8 + 17.5% + 17.1% 6.7 6.5 -0.2 -3.5% -4.2% 13.4% 11.0%

Eliminations (5.6) (6.0) -0.4 - - 0.0 (0.0) -0.0 - - - -

Compounds 61.1 63.7 2.6 + 4.2% + 4.1% 5.0 4.5 -0.5 -8.7% -5.9% 8.1% 7.1%

Japan 39.2 41.6 2.4 + 5.9% + 5.9% 2.5 2.6 0.1 + 2.3% + 2.3% 6.4% 6.1%

Overseas 33.3 34.9 1.6 + 4.7% + 4.3% 2.4 2.0 -0.4 -16.2% -10.8% 7.1% 5.7%

Eliminations (11.5) (12.8) -1.3 - - 0.1 0.0 -0.1 - - - -

Application Materials 55.7 56.7 1.0 + 1.8% + 1.8% 1.9 3.1 1.2 + 66.5% + 69.9% 3.4% 5.5%

Japan 52.7 55.9 3.2 + 6.1% + 6.1% 1.6 2.5 0.9 + 58.4% + 58.4% 3.0% 4.4%

Overseas 9.9 10.8 0.9 + 8.7% + 9.3% 0.3 0.6 0.3 2.1 times 2.5 times 3.0% 5.8%

Eliminations (6.9) (9.9) -3.0 - - 0.0 0.0 -0.0 - - - -

Others, Corporate and eliminations (39.7) (42.7) -3.0 - - (5.1) (5.4) -0.3 - - - -

Total 751.4 790.0 38.6 + 5.1% + 5.2% 54.2 58.0 3.8 + 7.0% + 9.3% 7.2% 7.3%

USD/YEN 109.96 111.93 109.96 111.93

EUR/USD 1.11 1.07 1.11 1.07

% Change% Change

Net sales Operating income Operating margin

2016

Actual

（Billion yen）

2017

ForecastChange

2016

Actual

2017

ForecastLocal

Currency

Basis

Local

Currency

Basis

2016

Actual

2017

ForecastChange

Segment* Principal products Initiatives in FY17

Printing Inks Packaging inks • Introduce new products that respond to market

needs

• Further expand sales in packaging-related markets

Publishing inks

News inks

Newspapers Catalogs and leaflets

• Boost sales of environment-friendly products

Fine Chemicals Functional pigments • Increase sales of products used in digital devices

• Broaden effect pigments business

• Bolster sales of pigments for cosmetics by raising

production capacity

LC materialsLCD televisions

Smartphones

Tablet computers

• Focus allocation of resources on areas in which DIC

is strong

Polymers Waterborne resins

Saturated polyester resins

Acrylic resins

UV-curable resins

Polyurethane resins

Epoxy resins

Principal applications

• Shift focus in Japan to niche markets and high-

value-added products

• Reinforce efforts to respond to needs for

waterborne and solvent-free products

Metallic pigments

（→P.5）

（→P.6）

（→P.7）

Semiconductor

encapsulation materials

Liquid crystals

Exterior coatings Vehicle

seats

PCs/IT equipment

Color filters for

LCD panels

Cosmetics

Packaging

for food

products

Shrink sleeve

labels for

plastic

bottles

Automobiles

Sales

JPY 365.2 billion

Operating income

（Margin）

JPY 18.4 billion

5.0%

Sales

JPY 128.2 billion

Operating income

（Margin）

JPY 14.4 billion

11.3%

Sales

JPY 180.9 billion

Operating income

（Margin）

JPY 19.6 billion

10.9%

15

Principal products and initiatives by segment


Reference

Pigments products

information

Polymer product

information

Printing inks products information

*FY16 actual data

http://www.dic-global.com/jp/en/products/pigments/

http://www.dic-global.com/jp/en/products/#02

http://www.dic-global.com/jp/en/products/ink/

Segment* Principal products Initiatives in FY17

Compounds Polyphenylene sulfide

(PPS) compounds

• Strengthen integrated local production, sales and

technical service configurations at principal overseas

bases

Jet inks • Firmly lock in demand in the large-scale industrial-

and commercial-use inkjet printer markets

Application Materials Industrial adhesive

tapes Smartphones

PCs

Automobiles

OA equipment

• Enter the market for automotive displays

Hollow-fiber membrane

modules

• Increase share of the market for degassing modules

Health foods

(Spirulina)

• Step up production and sales of natural blue food

coloring (Linablue)

Principal applications

（→P.8）

（→P.9）

Automobile engine peripherals

Industrial- and

commercial-use

inkjet printers

Hollow

fiber

Natural blue food

coloring

Health supplements

・Degasification* of jet inks

・Deaeration of ultrapure

water

*Degasification is the removal of

dissolved gasses from liquids

Sales

JPY 61.1 billion

Operating income

（Margin）

JPY 5.0 billion

8.1%

Sales

JPY 55.7 billion

Operating income

（Margin）

JPY 1.9 billion

3.4%

Principal products and initiatives by segment


Reference

PPS compounds products information

Adhesive tapes product information

Membrane products

information

Health foods product

information

16

*FY16 actual data

http://www.dic-global.com/jp/en/products/pps/

http://www.dic-global.com/jp/en/products/adhesive_tapes/

http://www.dic-global.com/jp/en/products/membrane/

http://www.dic-global.com/jp/en/products/health_foods/

Historical performance data (1)


Operating results Financial health

Reference

* D/C ratio: Interest-bearing debt / (Interest-bearing debt + Net assets)

Improvement of D/C ratio*D/C ratio*around 50％

779.0 734.3

703.8

784.0

830.1 820.0

751.4 790.0

960.0

37.2 35.0 38.5 44.1 41.1 51.1 54.2 58.0 65.0

4.8 4.8

5.5 5.6

4.9

6.2

7.2 7.3

6.8

2010 2011 2012 2013 2014 2015 2016 2017 2018

Sales

Operating income

Operating margin (%)

Adjusted Forecast Target

DIC108

（Billion yen）

337.6 328.5

315.6 299.1

274.2 259.5

241.3 250.0

130.4 124.5 160.7 218.9

276.7 289.9 307.0 324.0

72.1 72.5

66.3

57.7

49.8

47.2

44.0 43.6

2010 2011 2012 2013 2014 2015 2016 2017

Forecast

Interest-bearing debt

Net assets

D/C ratio* (%)

Achieved our D/C ratio* target of 50% four years ahead of schedule

Increase operating marginIncreaseoperating income

* Adjusted to reflect the impact of the changes in the fiscal year-end

(Billion yen)

*

Historical performance data (2)


Capital expenditure and investment, operating cash flowsShareholder returns*

Reference

Stable shareholder returnsPayout ratioaround 30%

Invest in growth while prioritizing the improvement of financial health

Drive DIC forward

Buyback and retirement of

treasury shares

* Adjusted to reflect the impact of the consolidation of shares of common stock

** Dividend yield: Annual dividends / Closing price per share at fiscal year-end

FY2016-FY2018 Plan・Ordinary investments: 120 billion yen・Strategic investments: 150 billion yen

(Including M&As)

20 20 30 30 30 40 406020 20

30 30 3040

60

60

40 40

60 60 60

80

100

120

22.7

20.2

28.8

20.522.4

20.5

27.3

30.3

2010 2011 2012 2013 2014 2015 2016 2017

Interim (Yen)

Year-end (Yen)

Payout ratio (%)

Forecast

Capital and business alliance

with TAIYO HOLDINGS

2.0 2.1 3.6 1.9 2.1 2.4 2.8Yield(%)**

30.9 31.2

41.4

33.9

46.4

29.1

62.5

18.613.7 17.7

24.019.0 19.1

30.3

22.3 28.0 29.4 27.6

36.3 34.0

32.1

65.0

2010 2011 2012 2013 2014 2015 2016 2017

Operating cash flow

Free cash flow


Forecast

（Billion yen）

Consolidated Financial Results FY2017: Three … · 1 May 2017 Consolidated Financial Results...

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