Declared Dividend • Apr 11
Final dividend of JP¥70.00 announced Shareholders will receive a dividend of JP¥70.00. Ex-date: 29th June 2026 Payment date: 1st September 2026 Dividend yield will be 5.8%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by both earnings (59% earnings payout ratio) and cash flows (43% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 22% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 27
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥342 (up from JP¥225 in FY 2024). Revenue: JP¥1.05t (down 1.8% from FY 2024). Net income: JP¥32.4b (up 52% from FY 2024). Profit margin: 3.1% (up from 2.0% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.0%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥3,928, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 14x in the Chemicals industry in Japan. Total returns to shareholders of 87% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥6,161 per share. Price Target Changed • Feb 28
Price target increased by 11% to JP¥4,500 Up from JP¥4,067, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥4,429. Stock is up 38% over the past year. The company is forecast to post earnings per share of JP¥375 for next year compared to JP¥342 last year. Reported Earnings • Feb 17
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: JP¥342 (up from JP¥225 in FY 2024). Revenue: JP¥1.05t (down 1.8% from FY 2024). Net income: JP¥32.4b (up 52% from FY 2024). Profit margin: 3.1% (up from 2.0% in FY 2024). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.0%. Revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Feb 16
DIC Corporation, Annual General Meeting, Mar 25, 2026 DIC Corporation, Annual General Meeting, Mar 25, 2026. Announcement • Dec 26
DIC Corporation to Report Fiscal Year 2025 Results on Feb 16, 2026 DIC Corporation announced that they will report fiscal year 2025 results on Feb 16, 2026 Upcoming Dividend • Dec 22
Upcoming dividend of JP¥150 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 30 March 2026. Payout ratio is a comfortable 29% but the company is paying out more than the cash it is generating. Trailing yield: 3.7%. Within top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.5%). Reported Earnings • Nov 15
Third quarter 2025 earnings released: EPS: JP¥91.25 (vs JP¥44.52 in 3Q 2024) Third quarter 2025 results: EPS: JP¥91.25 (up from JP¥44.52 in 3Q 2024). Revenue: JP¥262.6b (down 2.3% from 3Q 2024). Net income: JP¥8.64b (up 105% from 3Q 2024). Profit margin: 3.3% (up from 1.6% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Sep 26
DIC Corporation to Report Q3, 2025 Results on Nov 13, 2025 DIC Corporation announced that they will report Q3, 2025 results on Nov 13, 2025 Declared Dividend • Sep 02
First half dividend of JP¥150 announced Shareholders will receive a dividend of JP¥150. Ex-date: 29th December 2025 Payment date: 30th March 2026 Dividend yield will be 5.5%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (34% earnings payout ratio) but not covered by cash flows (133% cash payout ratio). The dividend has increased by an average of 8.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 18% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 09
Second quarter 2025 earnings released: EPS: JP¥73.85 (vs JP¥97.10 in 2Q 2024) Second quarter 2025 results: EPS: JP¥73.85 (down from JP¥97.10 in 2Q 2024). Revenue: JP¥261.1b (down 7.7% from 2Q 2024). Net income: JP¥6.99b (down 24% from 2Q 2024). Profit margin: 2.7% (down from 3.2% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has increased by 5% per year whereas the company’s share price has increased by 7% per year. Price Target Changed • Jun 25
Price target decreased by 9.1% to JP¥3,667 Down from JP¥4,033, the current price target is an average from 3 analysts. New target price is 26% above last closing price of JP¥2,912. Stock is down 7.4% over the past year. The company is forecast to post earnings per share of JP¥346 for next year compared to JP¥225 last year. Announcement • Jun 25
DIC Corporation to Report Q2, 2025 Results on Aug 08, 2025 DIC Corporation announced that they will report Q2, 2025 results on Aug 08, 2025 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 02 September 2025. Payout ratio is a comfortable 31% but the company is paying out more than the cash it is generating. Trailing yield: 3.5%. Lower than top quartile of Japanese dividend payers (4.0%). Higher than average of industry peers (2.9%). Reported Earnings • May 20
First quarter 2025 earnings released: EPS: JP¥64.42 (vs JP¥29.35 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥64.42 (up from JP¥29.35 loss in 1Q 2024). Revenue: JP¥262.1b (up 2.5% from 1Q 2024). Net income: JP¥6.10b (up JP¥8.88b from 1Q 2024). Profit margin: 2.3% (up from net loss in 1Q 2024). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Declared Dividend • Apr 11
Final dividend of JP¥50.00 announced Dividend of JP¥50.00 is the same as last year. Ex-date: 27th June 2025 Payment date: 2nd September 2025 Dividend yield will be 3.8%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is covered by earnings (44% earnings payout ratio) but not covered by cash flows (296% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 46% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥2,459, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Chemicals industry in Japan. Total returns to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,645 per share. Announcement • Apr 02
A&A Material Corporation (TSE:5391) completed the acquisition of Dic Decor,Inc. from DIC Corporation (TSE:4631). A&A Material Corporation (TSE:5391) agreed to acquire Dic Decor,Inc. from DIC Corporation (TSE:4631) on November 6, 2024.
As of December 31, 2023, Dic Decor,Inc. reported total assets of ¥1.24 trillion and total common equity of ¥399.27 billion. The expected completion of the transaction is April 1, 2025.
A&A Material Corporation (TSE:5391) completed the acquisition of Dic Decor,Inc. from DIC Corporation (TSE:4631) on April 1, 2025. Announcement • Mar 14
Oasis Management Discloses its Views on DIC Corporation On March 13, 2025, Oasis Management Company Ltd. announced that it has adopted the Japan FSA’s ‘Principles of Responsible Institutional Investors’ (a/k/a the Japan Stewardship Code) and, in line with those principles, Oasis Management monitors and engages with its investee companies. Oasis Management stated that as a shareholder of DIC Corporation, Oasis Management has been increasingly concerned about the corporate governance deficiencies caused by Yoshihisa Kawamura’s reign and the conflicts of interest that his position has created. Oasis Management also urges shareholders to vote against Chairman Ino and CEO Ikeda and vote for Oasis Management’s shareholder proposals to amend the articles of incorporation to enhance monitoring of related-party transactions. Major Estimate Revision • Mar 05
Consensus EPS estimates increase by 10%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from JP¥1.12t to JP¥1.11t. EPS estimate rose from JP¥308 to JP¥339. Net income forecast to grow 49% next year vs 8.0% growth forecast for Chemicals industry in Japan. Consensus price target broadly unchanged at JP¥4,033. Share price was steady at JP¥3,208 over the past week. Announcement • Mar 03
Oasis Management Issues Recommendations to Shareholders of DIC Corporation On March 3, 2025, Oasis Management Company Ltd stated that it is concerned about DIC Corporation’s overall governance, notably the renomination Ino, ex-CEO who failed to improve Company’s poor performance and missed its mid-term business plan targets, and the scant monitoring of related-party transactions with Kawamura and companies in his orbit. Oasis is also concerned with Company’s handling of the future of the Museum, and requests that it be conducted in a more transparent and appropriate manner and asked the Company to publicly answer its questions prior to the annual general meeting. In addition, Oasis Management urged the shareholders of the Company to vote against the re-election of Company board nominee Ino, and vote for its proposal to amend the Articles of Incorporation to strengthen monitoring of related-party transactions, at the annual meeting of shareholders. New Risk • Feb 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 9.9% 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 (9.9% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (237% cash payout ratio). Reported Earnings • Feb 13
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: JP¥225 (up from JP¥421 loss in FY 2023). Revenue: JP¥1.07t (up 3.1% from FY 2023). Net income: JP¥21.3b (up JP¥61.2b from FY 2023). Profit margin: 2.0% (up from net loss in FY 2023). The move to profitability was primarily driven by higher revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 31%. Revenue is forecast to grow 2.9% p.a. on average during the next 2 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Feb 12
DIC Corporation, Annual General Meeting, Mar 27, 2025 DIC Corporation, Annual General Meeting, Mar 27, 2025. Announcement • Jan 03
DIC Corporation to Report Fiscal Year 2024 Results on Feb 12, 2025 DIC Corporation announced that they will report fiscal year 2024 results on Feb 12, 2025 Upcoming Dividend • Dec 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 31 March 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.6%). Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: JP¥44.52 (vs JP¥39.68 loss in 3Q 2023) Third quarter 2024 results: EPS: JP¥44.52 (up from JP¥39.68 loss in 3Q 2023). Revenue: JP¥268.8b (flat on 3Q 2023). Net income: JP¥4.22b (up JP¥7.97b from 3Q 2023). Profit margin: 1.6% (up from net loss in 3Q 2023). Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 107 percentage points per year, which is a significant difference in performance. Announcement • Nov 14
DIC Corporation Re-Designates Kaoru Ino as Director, Chairman of the Board of Directors from Representative Director Chairman of the Board of Directors, Effective December 31, 2024 DIC Corporation announced the following change to a representative director, which was resolved at a meeting of the Company's Board of Directors held on November 14, 2024. New appointment: Kaoru Ino as Director, Chairman of the Board of Directors from Representative Director Chairman of the Board of Directors. Effective December 31, 2024. Announcement • Nov 06
A&A Material Corporation (TSE:5391) agreed to acquire Dic Decor,Inc. from DIC Corporation (TSE:4631). A&A Material Corporation (TSE:5391) agreed to acquire Dic Decor,Inc. from DIC Corporation (TSE:4631) on November 6, 2024.
As of December 31, 2023, Dic Decor,Inc. reported total assets of ¥1.24 trillion and total common equity of ¥399.27 billion. The expected completion of the transaction is April 1, 2025. Price Target Changed • Oct 12
Price target increased by 7.7% to JP¥3,717 Up from JP¥3,450, the current price target is an average from 3 analysts. New target price is 9.7% above last closing price of JP¥3,389. Stock is up 39% over the past year. The company is forecast to post earnings per share of JP¥171 next year compared to a net loss per share of JP¥421 last year. Announcement • Oct 01
DIC Corporation(TSE:4631) dropped from Nikkei 225 Index DIC Corporation has been Dropped from the Nikkei 225 Index . Announcement • Sep 27
DIC Corporation to Report Q3, 2024 Results on Nov 14, 2024 DIC Corporation announced that they will report Q3, 2024 results on Nov 14, 2024 Reported Earnings • Aug 11
Second quarter 2024 earnings released: EPS: JP¥33.88 (vs JP¥9.51 loss in 2Q 2023) Second quarter 2024 results: EPS: JP¥33.88 (up from JP¥9.51 loss in 2Q 2023). Revenue: JP¥269.4b (up 3.6% from 2Q 2023). Net income: JP¥3.21b (up JP¥4.11b from 2Q 2023). Profit margin: 1.2% (up from net loss in 2Q 2023). Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 109 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Aug 11
Now 23% overvalued Over the last 90 days, the stock has fallen 4.4% to JP¥2,853. The fair value is estimated to be JP¥2,329, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.7% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Jul 25
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥2,926. The fair value is estimated to be JP¥3,667, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Jul 08
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥2,974. The fair value is estimated to be JP¥3,725, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Announcement • Jun 23
DIC Corporation to Report Q2, 2024 Results on Aug 09, 2024 DIC Corporation announced that they will report Q2, 2024 results on Aug 09, 2024 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥50.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 02 September 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.2%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (2.3%). Reported Earnings • May 19
First quarter 2024 earnings released: JP¥29.35 loss per share (vs JP¥20.04 profit in 1Q 2023) First quarter 2024 results: JP¥29.35 loss per share (down from JP¥20.04 profit in 1Q 2023). Revenue: JP¥255.8b (flat on 1Q 2023). Net loss: JP¥2.78b (down 246% from profit in 1Q 2023). Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 111 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • May 15
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 7.3% to JP¥3,142. The fair value is estimated to be JP¥2,506, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company became loss making. Declared Dividend • Apr 11
Final dividend of JP¥50.00 announced Shareholders will receive a dividend of JP¥50.00. Ex-date: 27th June 2024 Payment date: 2nd September 2024 Dividend yield will be 2.7%, which is higher than the industry average of 2.2%. Sustainability & Growth The dividend has increased by an average of 5.2% per year over the past 10 years. However, payments have been volatile during that time. Buy Or Sell Opportunity • Apr 03
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 9.4% to JP¥2,976. The fair value is estimated to be JP¥2,467, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company became loss making. Announcement • Mar 29
DIC Corporation to Report Q1, 2024 Results on May 15, 2024 DIC Corporation announced that they will report Q1, 2024 results on May 15, 2024 Price Target Changed • Mar 22
Price target increased by 17% to JP¥2,897 Up from JP¥2,480, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥2,923. Stock is up 27% over the past year. The company is forecast to post earnings per share of JP¥120 next year compared to a net loss per share of JP¥421 last year. Reported Earnings • Feb 14
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: JP¥421 loss per share (down from JP¥186 profit in FY 2022). Revenue: JP¥1.04t (down 1.5% from FY 2022). Net loss: JP¥39.9b (down 326% from profit in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to grow 3.2% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. Announcement • Feb 07
DIC Develops Antifoaming Agent for Use in Lubricating Oils for EVs DIC Corporation announced that it has developed an antifoaming agent for use in lubricating oils for electric vehicles (EVs) that contains no perfluoroalkyl and polyfluoroalkyl substance (PFASs) and boasts exceptional performance features. This new offering achieves excellent antifoaming properties, thermal stability and durability (shear stability), all of which had previously been difficult with PFAS-free products. Going forward, the Company will seek to broaden its product lineup and will promote the expansion of sales to manufacturers of lubricating oils for EVs in Japan, the United States and Europe. DIC has set a goal for annual sales of these products of ¥2.0 billion by fiscal year 2030. Concerns regarding latent environmental risks associated with PFASs have prompted debate, particularly in Europe and the United States, over the need to further regulate these substances. In a proactive response to the rising global need for sustainable alternatives to fluorosurfactants, DIC began developing a PFAS-free surfactant. In August 2023, the Company announced the development of the MEGAFACE® EFS series of PFAS-free surfactants that deliver a performance rivaling that of fluorosurfactants despite not containing PFASs. MEGAFACE® EFS surfactants are currently sold as viable alternatives to conventional products for diverse applications, including displays, semiconductors, EVs and coatings. For the second product in the MEGAFACE® EFS series, DIC turned its attention to a PFAS-free antifoaming agent for use in lubricating oils for EVs. The combination of environment-friendly raw materials and DIC’S unique molecular design technologies facilitated the development of a PFAS-free antifoaming agent that achieves antifoaming properties, thermal stability and durability (shear stability) equivalent to or better than antifoaming agents containing PFASs. Such conventional antifoaming agents are added to lubricating oils in small amounts to lower surface tension and rupture foam lamellas, with applications ranging from lubricating oils for metal processing to automotive and industrial gear oils. However, developing silicone-based alternatives with a performance comparable to that of antifoaming agents containing PFASs has proven particularly challenging. In contrast, DIC’s new product features superior antifoaming properties in high temperature ranges, which is difficult with ordinary silicone-based PFAS-free agents, as well as superb durability when exposed to heat and mechanical stress (shear) as a lubricating oil ingredient. In the DIC Vision 2030 long-term management plan, DIC sets forth a basic strategy of expanding its operations with a core focus on sustainable products. The Company will continue to augment its selection of PFAS-free products that help address social imperatives, thereby helping promote the sustainability of industry and the reduction of environmental risks. Announcement • Dec 27
DIC Corporation to Report Fiscal Year 2023 Results on Feb 13, 2024 DIC Corporation announced that they will report fiscal year 2023 results on Feb 13, 2024 Upcoming Dividend • Dec 21
Upcoming dividend of JP¥30.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 28 December 2023. Payment date: 01 April 2024. Trailing yield: 2.3%. Lower than top quartile of Japanese dividend payers (3.5%). In line with average of industry peers (2.4%). Reported Earnings • Nov 18
Third quarter 2023 earnings released: JP¥39.68 loss per share (vs JP¥36.09 profit in 3Q 2022) Third quarter 2023 results: JP¥39.68 loss per share (down from JP¥36.09 profit in 3Q 2022). Revenue: JP¥266.3b (down 2.7% from 3Q 2022). Net loss: JP¥3.76b (down 210% from profit in 3Q 2022). Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Nov 14
Consensus EPS estimates fall by 32% The consensus outlook for fiscal year 2023 has been updated. 2023 consensus EPS estimate fell from JP¥60.20 to JP¥41.20. Revenue forecast reaffirmed at JP¥1.06t. Net income forecast to grow 180% next year vs 12% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥2,613 to JP¥2,497. Share price fell 2.8% to JP¥2,326 over the past week. Announcement • Oct 31
DIC Corporation Announces CEO Changes with Effect from January 1, 2023 DIC Corporation announced CEO changes with effect from January 1, 2024. Takashi Ikeda will replace Kaoru Ino as CEO. Name: Takashi Ikeda; Place of birth: Osaka Prefecture, Japan; Date of birth: May 7, 1965 (age: 58). Education and career summary: March 1990 - Completed master's degree program at the Graduate School of Science and Technology, Keio University; April 1990 - Joined the Company; June 2001 - MBA, Kellogg School of Management, Northwestern University, United States; February 2013 - Director, Sun Chemical Corporation; January 2019 - General Manager, Functional Products Business Planning Department; January 2020 - Executive Officer; General Manager, Composite Material Products Division; January 2021 - Executive Officer; President, Functional Products Business Group; General Manager, Composite Material Products Division; January 2022 to present - Managing Executive Officer; President, Functional Products Business Group; General Manager, Composite Material Products Division. Announcement • Oct 30
DIC Corporation Resolves to Implement the Changes to the Company's Representative Directors with Effect from January 1, 2024 DIC Corporation announced that its Board of Directors resolved to implement the changes to the Company's representative directors with effect from January 1, 2024. Takashi Ikeda will move from Managing Executive Officer to President. Kaoru Ino will move from Representative Director and President to Representative Director and Chairman of the Board of Directors. Shuji Furuta from Director and Managing Executive Officer to Representative Director and Executive Vice President. Toshifumi Tamaki will move from Representative Director and Executive Vice President to Director. Masayuki Saito will move from Chairman of the Board of to Directors to Director. Name: Takashi Ikeda; Place of birth: Osaka Prefecture, Japan; Date of birth: May 7, 1965 (age: 58). Education and career summary: March 1990 - Completed master's degree program at the Graduate School of Science and Technology, Keio University; April 1990 - Joined the Company; June 2001 - MBA, Kellogg School of Management, Northwestern University, United States; February 2013 - Director, Sun Chemical Corporation; January 2019 - General Manager, Functional Products Business Planning Department; January 2020 - Executive Officer; General Manager, Composite Material Products Division; January 2021 - Executive Officer; President, Functional Products Business Group; General Manager, Composite Material Products Division; January 2022 to present - Managing Executive Officer; President, Functional Products Business Group; General Manager, Composite Material Products Division. Name: Shuji Furuta; Place of birth: Nagasaki Prefecture, Japan; Date of birth: June 11, 1964 (age: 59). Education and career summary: March 1987 - BBA, Department of Business Administration, College of Business Administration, Yokohama National University; April 1987 - Joined the Company; January 2016 - General Manager, Finance Department; January 2019 - Executive Officer; Head of Finance and Accounting Unit; January 2020 - Executive Officer; Head of Finance and Accounting Unit; CFO; March 2021 - Director; Executive Officer; Head of Finance and Accounting Unit; CFO; January 2022 - Director; Managing Executive Officer; Head of Finance and Accounting present - Unit; CFO. Announcement • Sep 27
DIC Corporation to Report Q3, 2023 Results on Nov 14, 2023 DIC Corporation announced that they will report Q3, 2023 results on Nov 14, 2023 Major Estimate Revision • Aug 22
Consensus EPS estimates increase by 44% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from JP¥42.30 to JP¥60.75. Revenue forecast steady at JP¥1.06t. Net income forecast to grow 262% next year vs 7.0% growth forecast for Chemicals industry in Japan. Consensus price target of JP¥2,680 unchanged from last update. Share price was steady at JP¥2,416 over the past week. New Risk • Aug 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (1.4% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 137% Paying a dividend despite having no free cash flows. Minor Risk Large one-off items impacting financial results. Reported Earnings • Aug 10
Second quarter 2023 earnings released: JP¥9.51 loss per share (vs JP¥73.81 profit in 2Q 2022) Second quarter 2023 results: JP¥9.51 loss per share (down from JP¥73.81 profit in 2Q 2022). Revenue: JP¥260.1b (down 3.8% from 2Q 2022). Net loss: JP¥900.0m (down 113% from profit in 2Q 2022). Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Aug 08
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from JP¥1.14t to JP¥1.12t. EPS estimate also fell from JP¥223 per share to JP¥196 per share. Net income forecast to grow 70% next year vs 3.0% growth forecast for Chemicals industry in Japan. Consensus price target down from JP¥2,747 to JP¥2,680. Share price fell 4.8% to JP¥2,626 over the past week. Announcement • Aug 04
DIC Corporation Develops the MEGAFACE™ EFS Series of Environment-Friendly High-Performance PFAS-Free Surfactants DIC Corporation announced the development of the MEGAFACE™? EFS series of environment-friendly surfactants that deliver a performance rivaling that of conventional fluorosurfactants despite not containing perfluoroalkyl and polyfluoroalkyl substances (PFASs). These new products are suitable alternatives to fluorosurfactants for diverse applications, including displays, semiconductors, automobiles and coatings. The Company will promote the series in Japan, other East Asian markets, Europe and the United States, among others, targeting industries ranging from electronic materials to electric vehicles (EVs) and batteries, and aims to achieve annual sales of Y=5 billion by fiscal year 2030. Fluorosurfactants, added in small amounts, lower the surface tension of liquids, improving emulsification and surface activity. They thus play a key role in detergents, coatings and industrial products, among others. However, concerns regarding latent environmental risks associated with PFASs have prompted debate over regulating these substances, particularly in Europe and the United States. This has driven up demand for the development of PFAS-free alternatives to fluorosurfactant. DIC embarked on the development of a PFAS-free surfactant in a proactive response to rising global needs for sustainable alternatives to fluorosurfactANT. Leveraging its proprietary technologies and environment-friendly raw materials, the Company succeeded in creating the MEGAFACE™, EFS series of products boasting surface activity equal to or better than that of conventional fluorosurfactants. While realizing PFAS-free surfactants that rival fluorosurfactants on the performance front has been seen as a difficult challenge, DIC has achieved this goal with the MEGAFACE™ EFS series of products with an ability to reduce surface tension as good or greater than that of fluorosurfactants, thereby ensuring excellent coating uniformity (leveling behavior). Customers who usually use fluorosurfactants have rated the new series highly. Going forward, DIC will seek to build a market-leading position by offering these products globally as an alternative that contribute to the sustainability of industrial activity and the reduction of environmental risks. In the DIC Vision 2030 long-term management plan, DIC sets forth a basic strategy of expanding its Functional Products business with a focus on sustainable products. The DIC Group will continue to leverage its extensive expertise and technical capabilities in synthetic resins to accelerate product development and sales and contribute to solving social issues. Announcement • Jun 22
DIC Corporation to Report Q2, 2023 Results on Aug 09, 2023 DIC Corporation announced that they will report Q2, 2023 results on Aug 09, 2023 Upcoming Dividend • Jun 22
Upcoming dividend of JP¥50.00 per share at 3.8% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 01 September 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 3.8%. Within top quartile of Japanese dividend payers (3.5%). Higher than average of industry peers (2.5%). Announcement • Jun 02
DIC Corporation (TSE:4631) completed the acquisition of PCAS Canada Inc. from PCAS SA (ENXTPA:PCA). DIC Corporation (TSE:4631) agreed to acquire PCAS Canada Inc. from PCAS SA (ENXTPA:PCA) for an enterprise value of €88.2 million on May 25, 2023. The sale is not subject to any condition precedents. Therefore, the execution of the related agreements by PCAS and DIC Corporation as well as the closing of the transaction will be completed within the coming days. DIC Corporation (TSE:4631) completed the acquisition of PCAS Canada Inc. from PCAS SA (ENXTPA:PCA) on June 1, 2023. On completion, PCAS Canada Inc was renamed “Innovation DIC Chimitroniques Inc.” (English company name: “Innovation DIC Chemitronics Inc.”). Reported Earnings • May 18
First quarter 2023 earnings released: EPS: JP¥20.04 (vs JP¥78.22 in 1Q 2022) First quarter 2023 results: EPS: JP¥20.04 (down from JP¥78.22 in 1Q 2022). Revenue: JP¥255.2b (up 1.7% from 1Q 2022). Net income: JP¥1.90b (down 74% from 1Q 2022). Profit margin: 0.7% (down from 3.0% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Chemicals industry in Japan. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings.