DIC : Consolidated Financial Results for the Three Months Ended March 31, 2026 (Japan GAAP)

Stock Exchange: Tokyo Head Office: Tokyo Tel: +81 (3) 6733-3000

Company Name: DIC Corporation

Listing Code Number: 4631

URL: https://www.dic-global.com/en/

Representative: Takashi Ikeda, Representative Director, President and Group CEO Dividend Payment: －

Contact Person: Ippei Ouchi, General Manager, Accounting Department Preparation of Supplemental Explanatory Materials: Yes

Holding of Quarterly Financial Results Meeting: Yes (for security analysts and institutional investors)

(Yen amounts are rounded to the nearest million, except for per share information)

1. Consolidated Financial Results for the Three Months Ended March 31, 2026 (January 1, 2026 - March 31, 2026)

   1. Consolidated operating results (Percentages indicate year-on-year changes)

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of the parent
      Three months ended March 31, 2026 Three months ended March 31, 2025	JPY (million) 282,489 262,111	% 7.8 2.5	JPY (million) 24,512 13,057	% 87.7 54.0	JPY (million) 23,854 9,881	% 141.4 48.6	JPY (million) 19,194 6,099	% 214.7 -

      Note: Comprehensive income (JPY million): Three months ended March 31, 2026	26,428	(－%)
      Three months ended March 31, 2025	(7,394)	(－%)

      	Earnings per share (basic)	Earnings per share (diluted)
      	JPY	JPY
      Three months ended March 31, 2026	202.71	-
      Three months ended March 31, 2025	64.41	-

   2. Consolidated financial position

      	Total assets	Net assets	Shareholders' equity ratio to total assets
      	JPY (million)	JPY (million)	%
      As of March 31, 2026	1,303,573	501,880	37.0
      As of December 31, 2025	1,274,091	490,844	37.0

      Reference: Shareholders' equity (JPY million): As of March 31, 2026 482,864 As of December 31, 2025 470,881

2. Cash Dividends

   	Cash dividends per share
   (Record date)	End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-end	Annual
   	JPY	JPY	JPY	JPY	JPY
   FY2025	-	50.00	-	150.00	200.00
   FY2026	-
   FY2026 (Plan)		70.00	-	70.00	140.00

   Note: Revision of the latest forecasts for the dividends payment: None

3. Forecasts for Consolidated Operating Results for the Fiscal Year Ending December 31, 2026 (January 1, 2026 - December 31, 2026)

   (Percentages indicate year-on-year changes)

   	Net sales	Operating income	Ordinary income	Net income attributable to owners of the parent	Earnings per share (basic)
   First half of FY2026 FY2026	JPY (million) % 560,000 7.0 1,100,000 4.5	JPY (million) % 29,000 7.5 56,000 7.3	JPY (million) % 25,500 25.6 48,000 8.5	JPY % (million) 17,000 29.9 33,000 2.0	JPY 179.55 348.54

   Note: Revision of the latest forecasts for the consolidated operating results: None

   Notes

   1. Significant changes in the scope of consolidation during the three months ended March 31, 2026: None Newly included: － (Company name) － Excluded: － (Company name) －

   2. Adoption of accounting methods which are exceptional for quarterly consolidated financial statements: Yes

      For details, please refer to page 10, "3. Quarterly Consolidated Financial Statements, (3) Notes to Quarterly Consolidated Financial Statements, (Notes on Accounting Methods Which Are Exceptional for Quarterly Consolidated Financial Statements).

   3. Changes in accounting policies and accounting estimates, and restatements

      1. Changes in accounting policies arising from revision of accounting standards: None

      2. Changes in accounting policies other than 1): None

      3. Changes in accounting estimates: None

      4. Restatements: None

   4. Number of shares issued (common stock)

      1. Number of shares issued at the end of the period, including treasury shares

         As of March 31, 2026 95,156,904 shares, As of December 31, 2025 95,156,904 shares

      2. Number of treasury shares at the end of the period

         As of March 31, 2026 470,075 shares, As of December 31, 2025 476,859 shares

      3. Average number of shares issued during the period, excluding treasury shares

For the three months ended March 31, 2026 94,685,273 shares, For the three months ended March 31, 2025 94,681,704 shares

* The Company has introduced the Board Benefit Trust (BBT), and the shares held by the trust are included in the number of treasury shares.

Note: Review of the attached quarterly consolidated financial statements by certified public accountants or audit firms: None Note: Explanation of the appropriate use of performance forecasts, and other special items

Caution concerning forward-looking statements

The above forecasts of future performance are based on information available to the Company at the present time and are subject to potential risks and uncertainty. Accordingly, the users should be aware that actual results may differ from any expressed future performance herein due to various factors.

For information regarding the assumptions used to prepare the forecasts, please refer to page 5.

Table of Contents for Attached Materials

1. Analysis of Results of Operations… 2

   1. Overview of Operating Results 2

   2. Segment Results 3

   3. Operating Results Forecasts for the First Half of Fiscal Year 2026 and Fiscal Year 2026… 5

2. Analysis of Financial Position 5

3. Quarterly Consolidated Financial Statements 6

   1. Quarterly Consolidated Balance Sheet 6

   2. Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ……… 8

      Quarterly Consolidated Statement of Income 8

      Quarterly Consolidated Statement of Comprehensive Income 9

   3. Notes to Quarterly Consolidated Financial Statements 10

(Notes on Going Concern Assumption) 10

(Notes on Significant Changes in Shareholder's Equity) 10

(Notes on Accounting Methods Which Are Exceptional for Quarterly Consolidated Financial Statements) 10

(Additional Information) 10

(Notes on Quarterly Consolidated Statement of Cash Flows) 13

(Notes on Segment Information, etc.) 14

1. Analysis of Results of Operations
   1. Overview of Operating Results

      (Billions of yen)

      	Three months ended March 31, 2025	Three months ended March 31, 2026	Change (%)	Change (%) 〔Local currency basis〕
      Net sales	262.1	282.5	7.8%	1.8%
      Operating income	13.1	24.5	87.7%	75.7%
      Ordinary income	9.9	23.9	141.4%	-
      Net income attributable to owners of the parent	6.1	19.2	214.7%	-
      EBITDA *	24.4	39.3	61.0%	-
      ¥/US$1.00 (Average rate)	152.46	156.49	2.6%	-
      ¥/EUR1.00 (Average rate)	160.52	183.01	14.0%	-

      * EBITDA: Net income attributable to owners of the parent + Total income taxes + (Interest expenses - Interest income) + Depreciation and amortization + Amortization of goodwill

      In the three months ended March 31, 2026, consolidated net sales rose 7.8%, to ¥282.5 billion.

      • Key global economies continue to be impacted by logistics and supply chain disruptions arising from the escalating tensions in the Middle East, which have led to soaring crude oil prices and energy costs, as well as to concerns regarding supplies of naphtha-derived petrochemicals. Owing to multiple factors, including the impact of this situation on consumer prices, an uncertain outlook persists for both corporate entities and consumers.

      • In this environment, operating conditions in customer industries identified as key growth areas diverged. In digital materials, used principally in electrical and electronics equipment, the semiconductor market remained robust, propelled mainly by brisk demand for AI applications, while the display market benefited from an upswing in the operating rates of display manufacturers in expectation of higher demand for flat-screen televisions ahead of the 2026 FIFA World Cup quadrennial international men's soccer championship, which is scheduled to take place in June and July 2026. In industrial materials,* used primarily in mobility solutions, the automobile market was affected by changes in the demand structure, caused by the situation in the Middle East, which spurred higher sales of EVs worldwide at the same time as it pushed down Japanese automakers' exports to the region.

      • Against this backdrop, results varied for different products. Shipments of epoxy resins, industrial-use adhesive tapes, ultraviolet (UV)-curable resins and other high-value-added products for digital applications, were robust. In the Color & Display segment, shipments of pigments for color filters, used in displays, also advanced. Results for inks for packaging applications and for certain resins reflected a trend among customers, particularly in overseas markets, to boost inventories amid apprehension about the prolonged Middle East crisis.

      Operating income climbed 87.7%, to ¥24.5 billion. This was due mainly to rising shipments of high-value-added products, particularly for digital applications, as well as to relentless efforts to revise sales prices and implement appropriate cost management in all three segments. Other factors included a one-time gain stemming from the fact there was no longer a need to record a liability for repairs at a pigments production facility in Germany, which had been legally required in previous years, resulting in a ¥5.8 billion reversal of the liability.

      Ordinary income, at ¥23.9 billion, was up 141.4%, as foreign exchange losses associated with the depreciation of emerging market currencies declined.

      Net income attributable to owners of the parent soared 214.7%, to ¥19.2 billion. This was a consequence of higher extraordinary income, pushed up by the sale of works of art.

      Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 61.0%, to ¥39.3 billion.

      *DIC uses the term "industrial materials" to describe products for use in mobility solutions, namely, automobiles, railroads and shipping, and for general industrial applications such as construction equipment and industrial machinery.

   2. Segment Results

(Billions of yen)

Note: In Phase 2 of the Company's long-term management plan, "DIC Vision 2030"―the first year of which is fiscal year 2026-the Company has identified "Maximizing cash generation by improving capital efficiency" as a priority theme. As one of the metrics to measure its progress toward this goal, the Company has set return on invested capital (ROIC) targets for fiscal year 2030 for each reportable segment and is working to achieve high asset and capital efficiency that exceeds the cost of capital.

Accordingly, beginning from the three months ended March 31, 2026, the Company has changed the way it measures segment information to more accurately reflect each reportable segment's assets and capital efficiency.

Segment information for the three months ended March 31, 2025, has been prepared and disclosed based on the revised measurement method.

Segment sales increased 8.4%, to ¥145.2 billion. In the area of packaging inks, used chiefly on packaging for food products, sales were down in Japan, as rising consumer prices led to a decrease in consumption, which pushed down shipments. In contrast, sales of these products rose in the Americas and Europe, despite flagging shipments attributable to waning economic conditions, thanks to efforts to adjust sales prices. Sales of packaging inks were also up in Asia and elsewhere, despite temporary inventory buildup by customers-particularly in the People's Republic of China (PRC)-in anticipation of tensions in the Middle East, supported by moves to expand sales in individual regional markets. In publication inks, which center on inks for commercial printing and news inks, sales advanced, notwithstanding ongoing structural declines in publishing-related demand worldwide, bolstered by, among others, expanded shipments of UV-curable inks for printing trading cards and other applications and by the acquisition of market share from competitors in Europe. Sales of jet inks, used in digital printing, rose, despite one-time customer inventory adjustments, as shipments remained robust. Shipments of polystyrene, applications for which include food trays, were up, as the situation in the Middle East encouraged customers to stockpile inventories.

Segment operating income rose 25.0%, to ¥8.3 billion. Amid inventory buildup by customers attributable to the situation in the Middle East, steps taken to expand sales of high-value-added products and implement appropriate sales price revisions prompted gains in all geographic operating regions.