SK Electronics : Notification Concerning Gap between Full-Year Business Forecast and Results, & Distribution from Retained Earnings

3. Reason for the Gap between Results and Earnings Forecast

In the fiscal year ended September 30, 2020, in contrast with the business forecast we released on August 11, 2020, sales of Gen-10 and higher photomasks sharply declined due to the prolonged impact of the novel coronavirus (COVID-19). In addition, pertaining to Gen-6 photomasks, there was impact from US sanctions placed on telecommunication equipment manufacturers in China, triggered by US-China trade friction. These factors sparked a decrease in sales and profits at all three levels. Accordingly, a gap arose with our full-year business forecast.

2. Distribution from Retained Earnings

1. Details on dividends

	Decided amount	Most recent dividend forecast	FYE 9/2019 result
	(released May 11, 2020)
Record date	September 30, 2020	September 30, 2020	September 30, 2019
Dividend per share	10.00 yen	Pending	35.00 yen
Total cash dividends	105 million yen	－	370 million yen
Effective date	December 21, 2020	－	December 23, 2019
Dividend resources	Retained earnings	－	Retained earnings

(2) Reason

As mentioned above, in FYE September 2020, there was substantial impact from the spread of the novel coronavirus (COVID-19). Net sales and profits at all three levels undershot our full-year business forecast. However, we believe that sharing Group profits with our shareholders is one of our most important management goals. Thus far, it has been our objective to consistently and continuously payout dividends. In light of this, and comprehensively factoring in other matters, including our financial position, we plan to distribute a dividend per share of 10 yen as our fiscal year-end dividend.

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