Showa Denko: Announcement regarding expenses related to the acquisition of shares in Hitachi Chemical Company, recording of special losses, and revisions to the consolidated performance forecast and dividend forecast for the cumulative period of the second quarter of the fiscal year ending December 2020.

In the cumulative period of the second quarter ending December 2020, we will record expenses related to the acquisition of shares in Hitachi Chemical Co., Ltd. amounting to 21.6 billion yen (of which, operating expenses are 4.3 billion yen and non-operating expenses are 17.3 billion yen), as well as a special loss of 4.7 billion yen related to the optimization of production capacity in the graphite electrode business.
Additionally, we will revise the consolidated performance forecast for the cumulative period of the second quarter ending December 2020, which was previously undecided on May 15, 2020. We will account for the impact of a 21.7 billion yen reduction in the book value of inventory assets due to the decline in market conditions in the graphite electrode business, which has seen a relaxation in supply and demand. We will also reassess the impact of the COVID-19 pandemic and the sharp drop in oil prices on our performance, and make corrections as outlined below. Consequently, we will revise our dividend forecast for the fiscal year ending December 2020.
As for the full-year consolidated performance forecast, we are currently considering it as a forecast after the integration with Hitachi Chemical Co., Ltd., and we will provide an explanation during the announcement of the second quarter financial results for the fiscal year ending December 2020, which will be made on August 12, 2020.
