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Financial Results
for the 2nd Quarter of the FY2019（April 1, 2018-September 30, 2018）
October 26, 2018

Stock Code：4099

Contents
Corporate Profile
Highlights of Financial Results for the 2Q of FY2019
Financial Results Trend (consolidated and quarter)
Sales Trends by Region
Progress report
Assets / Liabilities, and a total equity (consolidated)
Sales and Profit by Business segments
Chemicals operations segment
Housing Materials operations segment
Cash Flow Overview (consolidated)
Sales / Operating Income Trend (consolidated)･･･ 3･･･ 4･･･ 5･･･ 6･･･ 7･･･ 8･･･ 9～10･･･ 11～12･･･ 13～14･･･ 15･･･ 162Copyright © SHIKOKU CHEMICALS CORPORATION

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Corporate Profile▼Company overview■Company nameSHIKOKU CHEMICALS CORPORATION■IncorporatedOctober 10, 1947
The Company was established in Marugame, Kagawa Prefecture, as a producer ofcarbon disulfide.
■Lines of Business〔Chemical operations〕Inorganic Chemicals, Organic Chemicals, Fine Chemicals〔Housing Materials operations〕Interior, Exterior Finishes and Paving Materials,
Home Exterior Products,Decorative Exterior Products■R&D,Plant Facilities
1 R&D,7 Plants■Directory〔Japan〕2 branches,11 sales offices 〔Overseas〕U.S.A,China(Shanghai,Shenzhen),Taiwan,Shingapore■Capital
6,867 million yen■Number of employees Consolidated1,152 Non-Consolidated 660（As of September 30, 2018）▼Share of stock■Issued Shares
58 million shares■Number of Shareholders 4,233（As of September 30, 2018）▼SHIKOKU CHEMICALS CORPORATION Group〔Japan〕10 consolidated subsidiaries〔Overseas〕one consolidated subsidiary and one unconsolidated subsidiary
SHIKOKU INTERNATIONAL CORPORATIONSHIKOKU KEIZAI CORPORATION
Nippon Ryutan Kogyo Co., Ltd.
SHIKOKU KEIZAI KANTO CORPORATION
Shikoku Environmental Business Company
NIHON KOHKI CORPORATION
Shikoku Analytical Laboratories
SHIKOKU SYSTEM KOHBOH CORPORATIONSHIKOKU KOSAN CORPORATION
Shikoku Foods & Trading Company
Shikoku Foods & Insurance Service Co., Ltd.
Shikoku (Shanghai) Co., Ltd.

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Highlights of Financial Results for the 2Q of FY2019(Millions of yen)

Consolidated cumulative 2QFY2018AmountFY2019

PercentageAmountPercentage

Increase ofamount

Changes

24,920100.0%

25,130100.0%

209

0.8%

Operating Income

3,967

15.9%

3,441

13.7%

▲ 525

▲13.3%

Ordinary income

4,225

17.0%

3,746

14.9%

▲ 479

▲11.3%Net income attributableto owners of the parent

2,876

11.5%

2,541

10.1%

▲ 334

▲11.6%

Exchange rate (USD)

112

110

Exchange rate (EUR)

124

130

Net sales

The exchange rates given above are average rates for the period from April to September.

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Financial Results Trend (consolidated and quarter)(Millions of yen)

Net sales

Operatingincome margin

Cost of sales
Selling,
general andadministrative
expenses
Operatingincome5Copyright © SHIKOKU CHEMICALS CORPORATION

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Sales Trends by Region(Millions of yen)

Outside Japan
Sales Ratio
Total

North America

Asia

Others6

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Progress report
Progress rate to full-year result

Progress rate to full-year forecast

Net sales
progressratio

Operatingincome
progressratio

Net sales

Operatingincome（forecast）(Millions of yen)

Net sales
Operating income12,339
1,672

24,102
3,393

36,074
5,310

49,467
7,855

12,377
1,907

24,9203,967

37,6106,172

50,791
8,167

12,364
1,549

25,1303,441

52,2007,300

Note： Revisions to the consolidated earnings forecasts most recently announced： No7

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Assets / Liabilities, and a total equity (consolidated)(Millions of yen)

(Millions of yen)

Total liabilities andequity
Notes and accounts
payable - trade

Total assets

Short-term and Current
portion of long-termloans payableOther current liabilities
Long-term loans
payableOther non-currentliabilities

Cash anddeposits

Accounts receivable

Inventories
Other current
assetsTotal equity

Tangible fixed
assetsIntangible fixed
assets andInvestment and otherassetsinterest-bearing debt
（millions of yen）

net interest-bearing debt
（millions of yen）

Equity ratio（％）

3,806

3,838

▲ 24,066▲ 23,162

74.4%

76.0%

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Sales and Profit by Business segments■ Sales amount

Othersconstituent ratio429(1.7%)(Millions of yen)

Housing Materials
operations

Exterior
Products

Inorganic
Chemicals

7,673(30.5%)

6,374(25.4%)

8,543(34.0%)

Chemicaloperations
16,156(64.3％)

FY2019Consolidatedcumulative 2Q
Net sales■ Segment information(Millions of yen)

Consolidated cumulative
2Q
FY2018FY2019

Increase ofamountInterior, Exterior Finishes
and Paving Materials
870(3.5%)
Changes

25,130Fine Chemicals

Organic
Chemicals
5,546(22.1%)

4,235(16.9%)

Net sales
Chemical operations

15,595

16,156561

3.6%

Housing Materials
operations

8,992

8,543

▲ 448

▲5.0%

Chemical operations

3,420

3,230

▲ 190▲5.6%

Housing Materials
operations

1,456

1,125

▲ 331 ▲22.7%

Segment profit

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Sales and Profit by Business segments(consolidated and quarter)(Millions of yen)

Chemicalsegment
profit rate

HousingMaterials
segment
profit rate
Chemicalsegment
profitHousing
Materials
segment
profitChemical operations
net sales
Housing Materials
operations net sales
Chemicalsegment profit
Housing Materials
segment profit

8,107

7,221

7,235

7,761

7,845

7,750

7,726

7,379

8,024

8,132

4,086

4,376

4,532

5,4744,383

4,609

4,751

5,632

4,193

4,350

1,752

1,385

1,492

1,808

1,745

1,675

1,790

1,362

1,577

1,652

389

785

857

1,207

633

823

859

1,133452

673

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Chemicals operations segment(Millions of yen)

Inorganic Chemicals【 Main products 】
 Insoluble sulfur

6,374(25.4%）

FY2019Consolidated
cumulative 2Q
Chemical operations
Net sales

16,156

Organic Chemicals
5,546(22.1%)

■

■

■

Vulcanizing agent for radial tires
Carbon Disulfide
Sodium Sulfate
Sodium carbonate【 Main products 】
Cyanuric acid derivatives■for swimming pool andseptic tank disinfectants
Hipolka

Fine Chemicals
4,235(16.9%)【 Main products 】
 Glicoat-SMD
Heat-resistant OSP (OrganicSolderability Preservative) for
printed wiring boards
Imidazoles
Imidazole derivatives for an epoxy resin
curing agent and a raw material for
pharmaceuticals and other applications;modifiers for high-added-value resins■THEIC11

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Sales Trend of Chemical operations(consolidated and quarter)(Millions of yen)

FineChemicals

OrganicChemicals

InorganicChemicals

Fine Chemicals
Organic Chemicals
Inorganic Chemicals

1,719
3,029
3,357

1,713
2,430
3,077

1,962
1,891
3,381

1,783
2,375
3,602

1,888
2,636
3,320

2,202
2,126
3,420

2,283
1,900
3,543

1,910
2,358
3,110

2,044
2,839
3,140

2,190
2,707
3,233

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Housing Materials operations segment(Millions of yen)

【Main products】
 Home Exterior Products

Exterior Products

gates, fences , garage and accordion gate

7,673(30.5%)

FY2019Consolidated
cumulative 2Q
Housing Materials
operations net sales

Decorative Exterior Products
large gates and fences , shelter, bicycle parking, garbage
collection container and Greening system【Main products】
 Interior, Exterior Finishes and Paving Materials“Myport 7” （ garage ）“Rise roof II” （ shelter ）Interior, Exterior Finishesand Paving Materials

8,543

870(3.5%)“Claris gate” （ housing gate ）13

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Sales Trend of Housing Materials operations(consolidated and quarter)(Millions of yen)

ExteriorProductsInterior,Exterior
Finishes andPaving
Materials
Exterior Products

3,596

3,876

3,972

4,983

3,895

4,148

4,279

5,195

3,746

3,926

Interior, Exterior Finishesand Paving Materials

489

499

559

490

487

460

471

437

446

423

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Copyright © SHIKOKU CHEMICALS CORPORATIONCash Flow Overview (consolidated)(Millions of yen)

Operating activities

Free cash flow

Operating activities

Free cash flow

Investing activities

Investing activities

FY20172Q

FY20182Q

FY20192Q

FY2017FY201815

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Sales/Operating Income Trend (consolidated )(Millions of yen)

Sales（forecast）

Operating income
Operating income margin（forecast）【The 2Q of FY2019】
Sales
25,130 million yen(Progress ratio 48.1%)（forecast）（forecast）
Note： Revisions to the consolidated earnings forecasts most recently announced： No

Operating income
3,441 million yen(Progress ratio 47.1％)

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Contact Information
Corporate planning department,
Shikoku Chemicals Corporation

TEL：+81-(0)877-21-4119
FAX：+81-(0)877-22-4119
www.shikoku.co.jp[Note regarding this document]
Forward-looking statements or projections mentioned in this document, including earnings are based on
currently available information and actual results may differ from the projection due to various factors.
Further, the purpose of this material is to provide information to the investors, and not to serve as arecommendation to buy or to sell. Please note that Shikoku Chemical Corporation will not be responsible forthe consequences of investments etc.