consolidated financial results fy2017: three … · 1 may 2017 consolidated financial results...
TRANSCRIPT
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)
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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
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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
Capital expenditure and investment
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
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(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
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.5
• 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 - - - -
(Billion yen) Net sales Operating income Operating margin
Change
% Change
Change
% Change
• Segment operating income was up substantially, underpinned by an
improved product mix, among others.
Fine Chemicals
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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 - - - -
(Billion yen) Net sales Operating income Operating margin
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
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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
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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 - - - -
(Billion yen) Net sales Operating income Operating margin
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
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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 - - - -
(Billion yen) Net sales Operating income Operating margin
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
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(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%
Interest-bearing debt 241.3 303.3 62.1
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
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.11
(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
Average rate USD/YEN 116.55 113.64
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
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.12
(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
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.13
Business
performance
Capital expenditure and investment
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
Average rate USD/YEN 109.96 111.93
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
Capital expenditure and investment
(Billion yen) 2016
End
2017End
ForecastChange
Interest-bearing debt 241.3 250.0 8.7
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
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.14
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
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.
Reference
Pigments products
information
Polymer product
information
Printing inks products information
*FY16 actual data
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
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.
Reference
PPS compounds products information
Adhesive tapes product information
Membrane products
information
Health foods product
information
16
*FY16 actual data
Historical performance data (1)
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.17
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)
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED.18
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
Capital expenditure and investment
Forecast
(Billion yen)