DIC (4631) Investor presentation summary

Strategic direction and vision

• Aims to transform the business model by 2030, focusing on sustainable growth, digitalization, and quality of life improvements.

• Emphasizes qualitative transformation of core businesses and expansion into growth areas such as semiconductors, batteries, and AI-related fields.

• Plans to balance investments in growth with enhanced shareholder returns and sustainability initiatives.

• Seeks to transition from traditional chemical manufacturing to solutions-oriented businesses, including software and services.

Review of Phase 1 (2022–2025)

• Restored profitability in core businesses and established a foundation for growth, despite delays and external challenges.

• Revised Phase 1 targets due to inflation, rising costs, and slower-than-expected growth in new businesses.

• Achieved revised operating income targets for 2025 through high-value product sales and cost reductions, though net sales fell short.

• Implemented structural reforms, divested noncore businesses, and improved capital efficiency.

• Reduced CO₂ emissions by 37% from 2013 levels and set a minimum annual dividend per share.

Phase 2 strategy (2026–2030)

• Focuses on building a business portfolio for sustainable prosperity, with qualitative reforms in core businesses and establishment of growth businesses.

• Targets operating income of ¥80 billion and ROE of 10% or higher by 2030.

• Strategic investments of ¥90 billion+ in growth businesses, with a total payout ratio of 40% or higher.

• Core businesses to shift toward environment-friendly, high-value products and expand in growth regions.

• Growth businesses to focus on semiconductors, batteries, and physical AI, leveraging M&A and CVC.