DIC : Notice of Revision of Drawdown Date for Subordinated Term Loan

ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT

This is a translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.

March 5, 2021

Company name Representative

ContactKaoru Ino Representative Director President and CEO (Securities code: 4631) Masaaki Nakagawa General Manager

Corporate Communications Department (Tel.: [phone])

Notice of Revision of Drawdown Date for Subordinated Term Loan

DIC Corporation hereby announces that its Board of Directors today approved the revision of the drawdown date for the subordinated term loan described in its press release titled "Notice of Financing through a Subordinated Term Loan," published on March 24, 2020.

1. Reason for revision of drawdown date

DIC plans to use funds procured through this subordinated term loan for the acquisition of the Color & Effects business of BASF SE, which was announced in its press release titled "Notice Regarding the Acquisition of the Shares and Assets of a Pigments Business from BASF SE of Germany and Transformation of the Business into a Subsidiary," published on August 29, 2019.

DIC is currently working toward completing this acquisition in the first quarter of 2021, as well as to the subsequent smooth transfer of the business, but because the closing of this transaction is pending approval by the U.S. Federal Trade Commission, there is a possibility that execution will be rescheduled to the first half of 2021. Because the original limit for the subordinated loan's drawdown date was March 31, 2021, this will be extended in advance.

2. Summary of the subordinated loan

Total amount procured	¥60 billion
Contract date	March 31, 2020
Drawdown date	Any date up to and including June 30, 2021 (Revised from "Any date up to and including March 31, 2021")
Use of funds procured	Business acquisition
Due date	60 years from the drawdown date
Early repayment*	The Company may repay before the due date all or part of the principal on each interest payment date five years from the drawdown
date or later, or in certain other specified circumstances.
Interest deferral clause	The Company may defer payment of interest.
Evaluation of equity credit attributes (expected)	Japan Credit Rating Agency: Medium/50%

* In the case of early repayment of the subordinated loan, DIC anticipates procuring funds through the issue of common stock or debt (refinancing securities) approved by rating agencies as having equity credit attributes equivalent to or higher than the subordinated loan. However, if the Company satisfies certain financial requirements when early repayment is made five years after the drawdown date or later, it may defer the procurement of funds through refinancing securities.

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