consolidated financial results fy2018: three months … · statements herein, other than those of...

May 2018

Consolidated Financial Results

FY2018: Three Months Ended March 31

Securities Code：4631

Highlights

COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED. 2

Net sales advanced, while operating income declined, in line

with expectations

Raw materials prices continued to rise, resulting in a product

price adjustment lag

With the 2Q marking the beginning of a high demand period,

increased shipments and progress in product price

adjustments are expected

Full-year forecasts are unchanged

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 three months of fiscal year 2018, ended March 31, 2018.

12.8 13.1 13.9 14.1 15.3

15.0 15.7 16.1 16.8 16.8

46.9 49.4 48.3 50.2 52.5

34.3 33.9 33.2

34.6 33.3

89.9 92.9 91.6

94.4 97.8

-9.9 -8.8 -9.4 -9.5 -9.6

189.0 196.2 193.7

200.6 206.1

0.8 0.5 0.3 0.7 0.8

0.80.8 1.3

1.4 1.5

4.54.0

4.54.8

5.8

4.2

4.2

4.3

4.6

4.3

4.0

2.5

3.8

4.3

5.3

-1.2 -1.0 -1.3 -1.2-1.8

13.1

11.0

12.9

14.6

15.9

1Q

2017 2018

2Q

2017 2018

3Q

2017 2018

4Q

2017 2018

1Q

2017 2018

2Q

2017 2018

3Q

2017 2018

4Q

2017 2018

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

Progress rate as per the full-year operating income forecasts

1Q 2Q 3Q 4Q

2018（％） 19.0 - - -

2017（％） 23.4 46.5 72.4 100.9

3

(Billion yen) 2017

1Q

2018

1QChange

34.4 11.9 -22.5

7.5 8.1 0.6

Capital expenditure and investment

Depreciation and amortization

Summary of financial results


Operating results Financial health

Capital expenditure and investmentNet sales ・Product price increases

・Firm shipments

Operating

income・Sales increases

・Improved product mix

・Edged up, owing to a stronger Euro

・Rising raw materials prices and an increase in

distribution costs

Ordinary

income• Declined, owing to lower operating income

Net

income*• Down, owing to the decrease in ordinary income

Local currency

basis

Net sales 189.0 196.2 +3.8% +2.5%

Operating income 13.1 11.0 -16.0% -18.5%

Operating margin 6.9% 5.6% －－

Ordinary income 13.3 11.0 -16.7% －

Net income* 8.8 7.4 -16.2% －

EPS (Yen) 93.24 78.29

Average rate YEN/USD 113.64 108.65 -4.4%

YEN/EUR 121.13 133.61 +10.3%

% Change2018

1Q

2017

1Q

(Billion yen) (Billion yen) 2017

End

2018

1Q EndChange

Interest-bearing debt 265.7 332.6 66.9

Net interest-bearing debt 247.8 254.5 6.7

Net assets 344.0 332.8 -11.1

D/C ratio ** 43.6% 50.0% －

BPS (Yen) 3,329.60 3,216.36

Closing rate (YEN/USD) 112.70 106.17

4

* Net income attributable to owners of the parent

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

Segment results


Local

currency

basis

Local

currency

basis

Printing Inks 89.9 92.9 3.0 + 3.3% + 1.8% 4.0 2.5 -1.5 -36.6% -38.4% 4.5% 2.7%

Japan 18.9 18.1 -0.8 -4.5% -4.5% 1.1 0.5 -0.6 -56.3% -56.3% 5.6% 2.6%

The Americas and Europe 57.9 60.8 2.9 + 5.1% + 2.7% 2.0 1.5 -0.5 -23.6% -28.8% 3.4% 2.5%

Asia and Oceania 15.2 16.4 1.2 + 7.4% + 6.9% 1.0 0.6 -0.4 -37.0% -36.6% 6.3% 3.7%

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

Fine Chemicals 34.3 33.9 -0.4 -1.2% -1.6% 4.2 4.2 0.0 + 0.0% -3.0% 12.3% 12.4%

Japan 10.5 10.0 -0.5 -4.3% -4.3% 1.9 1.7 -0.2 -9.3% -9.3% 18.0% 17.1%

Overseas 27.7 27.0 -0.7 -2.5% -2.9% 2.3 2.5 0.2 + 10.6% + 4.8% 8.1% 9.2%

Eliminations (3.9) (3.1) 0.8 - - 0.1 0.0 -0.1 - - - -

Polymers 46.9 49.4 2.5 + 5.2% + 4.3% 4.5 4.0 -0.5 -10.7% -11.6% 9.6% 8.1%

Japan 35.1 35.9 0.8 + 2.4% + 2.4% 3.3 2.5 -0.8 -22.0% -22.0% 9.3% 7.1%

Overseas 13.6 15.4 1.8 + 12.9% + 9.9% 1.2 1.4 0.2 + 15.2% + 12.2% 9.2% 9.4%

Eliminations (1.8) (1.9) -0.1 - - (0.0) 0.0 0.0 - - - -

Compounds 15.0 15.7 0.7 + 4.2% + 2.4% 0.8 0.8 0.0 + 4.6% + 0.2% 5.3% 5.4%

Japan 9.5 10.2 0.7 + 7.8% + 7.8% 0.4 0.6 0.2 + 67.7% + 67.7% 3.8% 6.0%

Overseas 8.4 8.9 0.5 + 5.5% + 2.5% 0.4 0.3 -0.1 -41.3% -47.4% 5.1% 2.8%

Eliminations (2.8) (3.4) -0.6 - - 0.0 (0.0) -0.0 - - - -

Application Materials 12.8 13.1 0.3 + 2.6% + 1.9% 0.8 0.5 -0.3 -32.0% -32.4% 5.9% 3.9%

Japan 12.1 12.2 0.1 + 1.3% + 1.3% 0.7 0.5 -0.2 -27.2% -27.2% 5.7% 4.1%

Overseas 2.4 2.7 0.3 + 11.5% + 8.1% 0.1 0.0 -0.1 -70.6% -74.6% 3.8% 1.0%

Eliminations (1.7) (1.8) -0.1 - - (0.0) (0.0) 0.0 - - - -

Others, Corporate and eliminations (9.9) (8.8) 1.1 - - (1.2) (1.0) 0.2 - - - -

Total 189.0 196.2 7.2 + 3.8% + 2.5% 13.1 11.0 -2.1 -16.0% -18.5% 6.9% 5.6%

YEN/USD 113.64 108.65 -4.4% 113.64 108.65 -4.4%

YEN/EUR 121.13 133.61 + 10.3% 121.13 133.61 + 10.3%

% Change2018

1Q

2017

1Q

2018

1Q

2017

1Q

2018

1QChange % Change

2017

1Q

（Billion yen） Net sales Operating income

Change

Operating margin

5

Printing Inks


• Waning demand for publishing inks and news

inks pushed down sales in North America.

• In Europe, sales increased, boosted by brisk

shipments of packaging inks.

• Sales in Central and South America were up,

buoyed by robust shipments of packaging inks

and news inks.

• Sales in the Americas and Europe advanced,

underpinned by an increase in overall sales of

packaging inks.

• Sales of packaging inks were level, a

consequence of inventory adjustments by

customers, among others. Nonetheless, overall

sales in Japan declined, reflecting factors such

as diminished demand for publishing inks and

news inks.

Net sales

Operating income

• Operating income declined dramatically,

despite the aforementioned sales results,

reflecting rising raw materials prices, among

others.

• Higher shipments of packaging inks and publishing

inks bolstered sales in the People’s Republic of

China and Southeast Asia.

• Sales in Oceania fell, with causes including fading

demand for publishing inks and news inks.

• Sales in India increased in all product categories.

• Overall sales in Asia and Oceania advanced.

• Operating income fell sharply, owing to the

aforementioned sales results, as well as to

rising raw materials prices, higher distribution

costs and other factors.

Japan The Americas and Europe Asia and Oceania

Net sales

Operating income

Net sales

Operating income

• Operating income decreased significantly,

regardless of the aforementioned sales results, a

consequence of rising raw materials prices and

other factors.

Local

currency

basis

Local

currency

basis

Printing Inks 89.9 92.9 3.0 + 3.3% + 1.8% 4.0 2.5 -1.5 -36.6% -38.4% 4.5% 2.7%

Japan 18.9 18.1 -0.8 -4.5% -4.5% 1.1 0.5 -0.6 -56.3% -56.3% 5.6% 2.6%

The Americas and Europe 57.9 60.8 2.9 + 5.1% + 2.7% 2.0 1.5 -0.5 -23.6% -28.8% 3.4% 2.5%

Asia and Oceania 15.2 16.4 1.2 + 7.4% + 6.9% 1.0 0.6 -0.4 -37.0% -36.6% 6.3% 3.7%

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

（Billion yen） Net sales Operating income Operating margin

Change Change2018

1Q

2017

1Q

2018

1Q

2017

1Q

2018

1Q

2017

1Q% Change % Change

6

• Notwithstanding an improved product mix, segment operating income

was level, owing to rising raw materials prices, among others.

Fine Chemicals


Net sales

Operating income

Sales of principal products

• Sales of pigments were down, despite an increase in shipments of

pigments for color filters and effect pigments. Reasons behind this

result included a temporary lull in shipments of pigments for cosmetics

and flagging demand for other pigments.

• Sales of TFT LCs rose, reflecting expanded shipments to existing

customers.

• These factors led to a decrease in segment sales.

Local

currency

basis

Local

currency

basis

Fine Chemicals 34.3 33.9 -0.4 -1.2% -1.6% 4.2 4.2 0.0 + 0.0% -3.0% 12.3% 12.4%

Japan 10.5 10.0 -0.5 -4.3% -4.3% 1.9 1.7 -0.2 -9.3% -9.3% 18.0% 17.1%

Overseas 27.7 27.0 -0.7 -2.5% -2.9% 2.3 2.5 0.2 + 10.6% + 4.8% 8.1% 9.2%

Eliminations (3.9) (3.1) 0.8 - - 0.1 0.0 -0.1 - - - -

2017

1Q

2018

1Q


Change Change2017

1Q

2018

1Q

2017

1Q

2018

1Q% Change% Change

7

% Change

Liquid crystal (LC) materials + 2%

Functional pigments -0%

Other pigments -6%

• Segment operating income declined, despite the aforementioned sales

results. Factors behind this result included rising raw materials prices.

• Sales of epoxy resins and other products for electronic and electrical

equipment advanced in both Japan and overseas.

• For these and other reasons, segment sales increased.

Polymers


Operating income

Net sales Sales of principal products

Local

currency

basis

Local

currency

basis

Polymers 46.9 49.4 2.5 + 5.2% + 4.3% 4.5 4.0 -0.5 -10.7% -11.6% 9.6% 8.1%

Japan 35.1 35.9 0.8 + 2.4% + 2.4% 3.3 2.5 -0.8 -22.0% -22.0% 9.3% 7.1%

Overseas 13.6 15.4 1.8 + 12.9% + 9.9% 1.2 1.4 0.2 + 15.2% + 12.2% 9.2% 9.4%

Eliminations (1.8) (1.9) -0.1 - - (0.0) 0.0 0.0 - - - -

2017

1Q

2018

1Q

2017

1Q

2018

1Q


Change Change2018

1Q

2017

1Q% Change % Change

8

% Change

Waterborne resins + 6%

Saturated polyester resins -2%

Acrylic resins + 3%

UV-curable resins + 9%

Polyurethane resins + 3%

Epoxy resins + 11%

Unsaturated polyester resins + 8%

Polystyrene -4%

• Regardless of rising raw materials prices and other factors, segment

operating income advanced, bolstered by the aforementioned sales

results.

• Shipments of polyphenylene sulfide (PPS) compounds and jet inks

expanded steadily.

• As a consequence, segment sales were up.

Compounds


Operating income

Net sales Sales of principal products

Local

currency

basis

Local

currency

basis

Compounds 15.0 15.7 0.7 + 4.2% + 2.4% 0.8 0.8 0.0 + 4.6% + 0.2% 5.3% 5.4%

Japan 9.5 10.2 0.7 + 7.8% + 7.8% 0.4 0.6 0.2 + 67.7% + 67.7% 3.8% 6.0%

Overseas 8.4 8.9 0.5 + 5.5% + 2.5% 0.4 0.3 -0.1 -41.3% -47.4% 5.1% 2.8%

Eliminations (2.8) (3.4) -0.6 - - 0.0 (0.0) -0.0 - - - -

（Billion yen） Net sales

2018

1Q

2017

1Q

2018

1Q

2017

1Q

Operating income Operating margin

Change Change2018

1Q

2017

1Q% Change% Change

9

% Change

PPS compounds + 5%

Jet inks + 25%

Plastic colorants + 8%

• Segment sales increased, reflecting higher shipments of industrial

adhesive tapes and hollow-fiber membrane modules.

• Segment operating income was down substantially, notwithstanding

the aforementioned sales results. Contributing factors included rising

raw materials prices.

Application Materials


Sales of principal products

Operating income

Net sales

Local

currency

basis

Local

currency

basis

Application Materials 12.8 13.1 0.3 + 2.6% + 1.9% 0.8 0.5 -0.3 -32.0% -32.4% 5.9% 3.9%

Japan 12.1 12.2 0.1 + 1.3% + 1.3% 0.7 0.5 -0.2 -27.2% -27.2% 5.7% 4.1%

Overseas 2.4 2.7 0.3 + 11.5% + 8.1% 0.1 0.0 -0.1 -70.6% -74.6% 3.8% 1.0%

Eliminations (1.7) (1.8) -0.1 - - (0.0) (0.0) 0.0 - - - -


Change Change2018

1Q

2017

1Q

2018

1Q

2017

1Q

2018

1Q

2017

1Q% Change % Change

10

% Change

Industrial adhesive tapes + 13%

Coextruded multilayer films + 8%

Hollow-fiber membrane modules + 7%

Health foods + 17%

Consolidated balance sheet


・Increased temporarily to secure liquidity on hand

(Billion yen) 2017

End

2018

1Q EndChange

Current assets 425.0 484.6 59.6

Property, plant and equipment 231.7 227.2 -4.5

Intangible assets 7.6 11.8 4.2

Investments and other assets 167.5 164.0 -3.5

Total assets 831.8 887.6 55.8

Current liabilities 266.6 335.1 68.6

Non-current liabilities 221.2 219.6 -1.6

Total liabilities 487.8 554.8 67.0

Shareholders' equity 375.9 377.7 1.7

Accumulated other comprehensive income (60.8) (73.3) -12.4

[Foreign currency translation adjustment] [(46.5)] [(58.9)] [-12.4]

Non-controlling interests 28.8 28.4 -0.4

Total net assets 344.0 332.8 -11.1

Total liabilities and net assets 831.8 887.6 55.8

Closing rate　(YEN/USD) 112.70 106.17

Shareholders' equity to total assets 37.9% 34.3%

Interest-bearing debt 265.7 332.6 66.9

Cash and deposits 17.9 78.1 60.2

11

Consolidated statement of income


Extraordinary income and loss(Billion yen) 2017

1Q

2018

1QChange

Net sales 189.0 196.2 7.2

Cost of sales 144.7 153.0 8.3

31.2 32.2 1.0

Operating income 13.1 11.0 -2.1

Interest expenses (0.5) (0.3) 0.2

Equity in earnings of affiliates 0.8 0.9 0.0

Foreign exchange gains (losses) (0.2) (0.2) -0.0

Other, net (0.1) (0.4) -0.3

Ordinary income 13.3 11.0 -2.2

Extraordinary loss (0.8) (0.7) 0.1

Income before income taxes 12.4 10.3 -2.2

Income taxes (2.9) (2.4) 0.6

Net income 9.5 7.9 -1.6

(0.7) (0.5) 0.2

8.8 7.4 -1.4

Average rate YEN/USD 113.64 108.65

YEN/EUR 121.13 133.61

Selling, general and administrative expenses

Net income attributable to non-controlling

interests

Net income attributable to owners

of the parent

2017

1Q

2018

1Q

Extraordinary loss

Loss on disposal of non-

current assets(0.6) (0.5)

Severance costs (0.2) (0.2)

12

Consolidated statement of cash flows


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: Reflected investments in TAIYO HOLDINGS CO., LTD., among others, in

2017

(Billion yen)2017

1Q

2018

1QChange

Cash flows from operating activities 21.0 9.8 -11.2

Cash flows from investing activities (42.0) (13.4) 28.6

Cash flows from financing activities 57.8 64.0 6.2

Cash and cash equivalents at end of the period 51.3 75.5 24.2

Free cash flow (21.0) (3.6) 17.4

Increase (decrease) in working capital 5.1 1.1 -4.1

Capital expenditure and investment 34.4 11.9 -22.5

Depreciation and amortization 7.5 8.1 0.6

13

Full-year forecasts


Business

performance

• Interim and full-year forecasts are unchanged

• Raw materials prices remain higher than initially assumed

• Higher shipments and product price adjustments are

expected to offset the above factors

* Net income attributable to owners of the parent

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

(Billion yen)

Local

currency

basis

Net sales 789.4 820.0 +3.9% +4.4%

Operating income 56.5 58.0 +2.7% +2.2%

Operating margin 7.2% 7.1% －－

Ordinary income 57.0 58.0 +1.8% －

Net income* 38.6 40.0 +3.6% －

EPS (Yen) 407.56 422.63

Average rate YEN/USD 112.33 106.93 -4.8%

YEN/EUR 127.03 131.52 +3.5%

ROE 13.0% 12.4%

120.0 125.0

Payout ratio 29.4% 29.6%

Annual dividends per share (Yen)

2017

Actual

2018

Forecast% Change

(Billion yen) 2017

Actual

2018

ForecastChange

62.4 51.0 -11.4

31.5 33.0 1.5Depreciation and amortization


(Billion yen) 2017

End

2018End

ForecastChange

Interest-bearing debt 265.7 260.0 -5.7

Net assets 344.0 360.5 16.5

D/C ratio ** 43.6% 41.9% －

14

Financial health


Local

currency

basis

Local

currency

basis

Printing Inks 373.7 387.7 14.0 + 3.7% + 4.7% 17.4 17.2 -0.2 -1.3% -1.5% 4.7% 4.4%

Japan 77.1 76.4 -0.7 -0.9% -0.9% 3.9 3.2 -0.7 -18.2% -18.2% 5.1% 4.2%

The Americas and Europe 241.1 250.6 9.5 + 4.0% + 5.1% 9.5 9.8 0.3 + 2.3% + 1.3% 4.0% 3.9%

Asia and Oceania 64.8 70.7 5.9 + 9.0% + 10.8% 4.0 4.2 0.2 + 4.5% + 5.7% 6.2% 5.9%

Eliminations (9.4) (10.0) -0.6 - - (0.0) 0.1 0.1 - - - -

Fine Chemicals 135.4 135.8 0.4 + 0.3% + 1.5% 17.4 16.7 -0.7 -3.9% -4.6% 12.8% 12.3%

Japan 43.7 40.2 -3.5 -8.1% -8.1% 8.3 7.4 -0.9 -10.8% -10.8% 19.0% 18.5%

Overseas 107.0 109.5 2.5 + 2.3% + 4.0% 9.2 9.3 0.1 + 1.2% -0.1% 8.6% 8.5%

Eliminations (15.3) (13.9) 1.4 - - (0.1) 0.0 0.1 - - - -

Polymers 197.9 208.5 10.6 + 5.4% + 5.1% 19.6 20.6 1.0 + 5.0% + 4.6% 9.9% 9.9%

Japan 147.0 150.9 3.9 + 2.7% + 2.7% 14.3 13.5 -0.8 -5.3% -5.3% 9.7% 9.0%

Overseas 57.9 64.9 7.0 + 12.1% + 11.2% 5.4 7.1 1.7 + 30.6% + 29.3% 9.3% 10.9%

Eliminations (6.9) (7.3) -0.4 - - (0.1) 0.0 0.1 - - - -

Compounds 64.7 67.3 2.6 + 4.1% + 4.8% 5.0 5.2 0.2 + 3.3% + 3.7% 7.7% 7.7%

Japan 41.7 44.3 2.6 + 6.2% + 6.2% 3.1 3.3 0.2 + 7.9% + 7.9% 7.3% 7.5%

Overseas 35.9 36.8 0.9 + 2.6% + 4.0% 2.0 1.9 -0.1 -5.2% -4.1% 5.4% 5.0%

Eliminations (12.9) (13.8) -0.9 - - (0.0) 0.0 0.0 - - - -

Application Materials 56.1 58.6 2.5 + 4.5% + 4.6% 2.6 3.9 1.3 + 49.7% + 47.8% 4.6% 6.6%

Japan 53.0 55.1 2.1 + 3.9% + 3.9% 2.3 3.3 1.0 + 45.8% + 45.8% 4.3% 6.0%

Overseas 10.8 11.8 1.0 + 9.9% + 10.6% 0.3 0.6 0.3 + 65.7% + 51.6% 3.2% 4.8%

Eliminations (7.7) (8.3) -0.6 - - (0.0) 0.0 0.0 - - - -

Others, Corporate and eliminations (38.4) (37.9) 0.5 - - (5.5) (5.6) -0.1 - - - -

Total 789.4 820.0 30.6 + 3.9% + 4.4% 56.5 58.0 1.5 + 2.7% + 2.2% 7.2% 7.1%

YEN/USD 112.33 106.93 -4.8% 112.33 106.93 -4.8%

YEN/EUR 127.03 131.52 + 3.5% 127.03 131.52 + 3.5%

Net sales（Billion yen） Operating income

Change

Operating margin

2017

Actual

2018

Forecast

2017

Actual

2018

Forecast

2017

Actual

2018

ForecastChange % Change% Change

Full-year segment results forecasts

COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED. 15

Segment* Principal products Initiatives in 2018

Printing Inks Packaging inks • Further expand sales in packaging-related markets

Publishing inks

News inks

Newspapers Catalogs and leaflets

• Boost sales of environment-friendly products

• Further enhance production efficiency

Fine Chemicals Functional pigments • Focus on high-growth businesses

LC materialsLCD televisions

Smartphones

Tablet computers

• Focus allocation of resources on areas in which DIC

is strong

Polymers

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

Waterborne resins

Saturated polyester resins

Acrylic resins

UV-curable resins

Polyurethane resins

Epoxy resins

Metallic pigments

（→P.6）

（→P.7）

（→P.8）

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 373.7 billion

Operating income

（Margin）

JPY 17.4 billion

4.7%

Sales

JPY 135.4 billion

Operating income

（Margin）

JPY 17.4 billion

12.8%

Sales

JPY 197.9 billion

Operating income

（Margin）

JPY 19.6 billion

9.9%

Principal products and initiatives by segment (Reference)


Pigments products

information

Polymer products

information

Printing inks products information

*2017 actual data

16

Printing inks products information

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/

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

Segment* Principal products Initiatives in 2018

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

• Expand sales in markets unrelated to mobile

devices

Hollow-fiber membrane

modules

• Increase share of the market for degassing modules

and decarbonation modules

Health foods

(Spirulina)

• Step up production and sales of natural blue food

coloring (Linablue)

Principal applications

（→P.9）

（→P.10）

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 64.7 billion

Operating income

（Margin）

JPY 5.0 billion

7.7%

Sales

JPY 56.1 billion

Operating income

（Margin）

JPY 2.6 billion

4.6%

Principal products and initiatives by segment (Reference)


PPS compounds products information

Adhesive tapes products

information

Membrane products

information

Health foods products

information

*2017 actual data

17

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/

779.0 734.3

703.8

784.0

830.1 820.0

751.4 789.4

820.0

37.2 35.0 38.5 44.1 41.1 51.1 54.2 56.5 58.0

4.8 4.8

5.5 5.6

4.9

6.2

7.2 7.2 7.1

2010 2011 2012 2013 2014 2015 2016 2017 2018

Sales

Operating income

Operating margin (%)

Adjusted Forecast

（Billion yen）

Historical performance data (Reference)


Operating results Financial health

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

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

337.6 328.5

315.6 299.1

274.2 259.5

241.3

265.7 260.0

130.4 124.5

160.7

218.9

276.7 289.9 307.0

344.0 360.5

72.1 72.5

66.3

57.7

49.8

47.2 44.0 43.6

41.9

2010 2011 2012 2013 2014 2015 2016 2017 2018

Forecast

Interest-bearing debt

Net assets

D/C ratio* (%)

（Billion yen）

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)

*

18

30.9 31.2

41.4

33.9

46.4

29.1

62.5

54.2

18.613.7 17.7

24.019.0 19.1

30.3

(4.7)

22.3 28.0 29.4 27.6

36.3

34.0 32.1

62.4

51.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Operating cash flow

Free cash flow


Forecast

（Billion yen）

Historical performance data (Reference)


Capital expenditure and investment, operating cash flowsShareholder returns*

Stable shareholder returnsPayout ratioaround 30%

Invest in growth while prioritizing the improvement of financial health

Drive DIC forward

** 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 4060 6020 20

30 30 3040

6060 65

40 4060 60 60

80100

120 125

22.7

20.2

28.8

20.522.4

20.5

27.329.4 29.6

2010 2011 2012 2013 2014 2015 2016 2017 2018

Interim (Yen)

Year-end (Yen)

Payout ratio (%)

Forecast

Capital and business alliance

with TAIYO HOLDINGS

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

19

Buyback and retirement of

treasury shares

Disclaimer Regarding Forward-Looking Statements

Statements herein, other than those of historical fact, are forward-looking statements

that reflect management’s projections based on information available as of the

publication date. These forward-looking statements are subject to risks and

uncertainties that could cause actual results to differ materially from such statements.

These risks and uncertainties include, but are not limited to, economic conditions in

Japan and overseas, market trends, raw materials prices, interest rate trends,

currency exchange rates, conflicts, litigations, disasters and accidents, as well as the

possibility the Company will incur special losses related to the restructuring of its

operations.

consolidated financial results fy2018: three months … · statements herein, other than those of...

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