New Risk • May 30
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 13% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (14% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (₩30.8b market cap, or US$20.4m). Announcement • May 28
Dyc Co.,Ltd. announced that it expects to receive KRW 2.000000889 billion in funding from LIG Defense&Aerospace Co., Ltd. Dyc Co.,Ltd. has announced a private placement to issue 1,235,331 common shares at an issue price of KRW 1,619 for gross proceeds of KRW 2,000,000,889 on May 26, 2026. The transaction includes participation from new investor, LIG Defense&Aerospace Co., Ltd. The transaction has been approved by the board of directors of the company. The payment date of the transaction is June 4, 2026. The transaction will happen through third party allocation. The securities are subject to one year lock up. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩1,640, the stock trades at a trailing P/E ratio of 9.2x. Average trailing P/E is 6x in the Auto Components industry in South Korea. Total loss to shareholders of 15% over the past three years. 
