SHIKOKU CHEMICALS CORPORATION

Stock Code：4099
October 29, 2019

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2019
[under Japanese GAAP](Amounts less than one million yen are rounded down)

1．Consolidated financial results for the six months ended September 30, 2019(from April 1, 2019 to September 30, 2019)(1) Consolidated operating results（Millions of yen, except per share amounts; Percentages indicate year-on-year changes ）Six months ended
Six months ended
September 30, 2019
September 30, 2018%%
Net sales25,6932.2
25,1300.8
Operating income
3,567
3.7
3,441(13.3)
Ordinary income
3,626(3.2)
3,746(11.3)Net income attributable to owners of the2,534(0.3)
2,541(11.6)
ParentBasic earnings per share (Yen)
43.38
43.50
Diluted earnings per share (Yen)
Note: Comprehensive income
1,840 million yen(31.8%) 2,699 million yen(35.1%)(2) Consolidated financial position
September 30, 2019

(Millions of yen)March 31, 2019

90,32571,565
78.3%
70,769 million yen

92,191
70,37075.5%
69,582 million yen

Total assets
Total equity
Ratio of equity attributable to owners of the Parent
Reference: Equity attributable to owners of the Parent

2．Dividends

Year ending
March 31, 2020
(Forecast)Year ending
March 31, 2020

Year ended
March 31, 2019

Annual cash dividends per share (Yen)
1st quarter end
2nd quarter end
12.00
3rd quarter end
Fiscal year end
12.00
Total
24.00
Note: Revisions to the cash dividends forecasts most recently announced: Yes

11.00
11.00
22.00

3．Forecast of consolidated operating results for the year ending March 31, 2020
(from April 1, 2019 to March 31, 2020)（Millions of yen, except per share amounts; Percentages indicate year-on -year changes）
Year ending
March 31, 2020%
Net sales
53,5001.3
Operating income
8,200
1.9
Ordinary income
8,500
0.8
Net income attributable to owners of the Parent
5,800
7.5
Basic earnings per share (Yen)
99.28
Note: Revisions to the consolidated operating results forecasts most recently announced: NoneSHIKOKU CHEMICALS CORPORATION

Stock Code：4099
October 29, 2019
4．Others
Number of issued shares outstanding at the end of the periods(ordinary shares)

Number of issued shares including treasury shares
Number of treasury shares

September 30, 201958,948,063 shares
527,836 shares

March 31, 201958,948,063 shares
527,764 shares

Average number of shares outstanding during the period

Six months ended
September 30, 201958,420,268 shares

Six months ended
September 30, 2018
58,420,747 shares

Explanation regarding the appropriate use of forecast of operating results and other special items
Forward-looking statements such as earnings forecasts and other projections contained in this report arebased on information currently available and certain assumptions judged by management to be reasonable,
and do not constitute guarantees of future performance. Actual results may differ materially fromexpectations due to various factors.

Consolidated Financial Statements
Consolidated Balance Sheets
March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses for directors (and other officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and other office
Retirement benefit liability
Asset retirement obligations
Provision for share-based remuneration
Other
Total non-current liabilities
Total liabilities

1(Millions of yen)
September 30, 2019

26,641
14,496
2,149
3,800
6,158
47
3,233
310
ᇞ156,836

24,67912,100
1,787
8,300
6,049
42
3,123
217
ᇞ056,299

5,327
4,506
8,835
112
734
19,515
176

5,163
4,022
8,835
300
655
18,977141

14,390647
627
ᇞ315,66235,35592,191

13,390922
597
ᇞ314,90734,02590,325

8,430
439
1,930
914
940
66
3,985
16,707

6,136
383
1,630
730
1,131
34
3,537
13,583

680
23
1,111
111
2,219
378
－
587
5,113
21,820

791
8
1,111
78
2,224
378
10
572
5,176
18,759

Consolidated Financial Statements
Consolidated Balance Sheets
March 31, 2019
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets2(Millions of yen)
September 30, 2019

6,867
5,740
51,798
ᇞ322
64,084

6,867
5,815
53,690ᇞ397
65,976

3,199
ᇞ4
2,533
ᇞ93
ᇞ137
5,498
788
70,37092,191

2,508
ᇞ62,533
ᇞ116
ᇞ125
4,793
796
71,56590,325

Consolidated Statements of Income
Six months ended
September 30, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Transportation and storage costs
Advertising expenses
Salaries
Provision for bonuses for directors (and other officers)
Retirement benefit expenses
Provision for retirement benefits for directors (and other off
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expensesInterest expenses
Sales discounts
Foreign exchange losses
Loss on abandonment of inventories
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

3(Millions of yen)Six months ended
September 30, 201925,13015,346
9,783

25,693
15,545
10,1482,021373
1,122
33
93
9621
2,067
6,342
3,441

2,195
385
1,118
36
89
10
635
2,110
6,580
3,567

6291
98
11408

11
271－
27310

858－
35
1103
3,746

866
142
25
8251
3,626－
22

44
1
45

10
10
3,738
1,183
2,554
13
2,541

7
7
3,663
1,113
2,550
16
2,534

Consolidated Statements of Comprehensive Income
Six months ended
September 30, 2018
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

4(Millions of yen)Six months ended
September 30, 2019

2,554

2,550

129
ᇞ49
53
10
144
2,699

ᇞ695
ᇞ2
ᇞ2211
ᇞ709
1,840

2,689
9

1,829
11

Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Subsidy income
Loss on retirement of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of securities
Payments for retirement of property, plant and equipment
Purchase of investment securities
Decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do not result in change in scope ofOther, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period5

Six months ended
September 30, 2018

(Millions of yen)Six months ended
September 30, 2019

3,738
1,080
2922
ᇞ298
8－
10585
ᇞ8
ᇞ930
ᇞ649
3,588
298
ᇞ8－
ᇞ1,665
2,212

3,663
1,061
12
12
ᇞ282
8
ᇞ44
7
2,714
210
ᇞ2,322
ᇞ25
5,017
282
ᇞ9
44
ᇞ932
4,401

ᇞ714
－
ᇞ7
ᇞ3
ᇞ1,0004
ᇞ1,721

ᇞ732
ᇞ3,500
ᇞ1
ᇞ4
2,000
16
ᇞ2,221－
100
ᇞ75
ᇞ0
ᇞ642
ᇞ3
ᇞ14
ᇞ21
ᇞ657
94
ᇞ71
26,87226,801

ᇞ300
800
ᇞ874
ᇞ0
ᇞ642
ᇞ3－
ᇞ12
ᇞ1,032
ᇞ108
1,038
27,441
28,479