Consolidated Financial Results
for the Nine Months Ended December 31, 2020
[Japanese GAAP]
January 27, 2021
Company name: SHIKOKU CHEMICALS CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Code number: 4099
URL: https://www.shikoku.co.jp/
Representative: Naoto Tanaka, President and C.E.O.
Contact: Kazuhiko Katayama, Executive Officer, General Manager of Finance, Accounting & Information Systems
Department
Phone: +81-877-22-4111
Scheduled date of filing quarterly securities report: February 9, 2021
Scheduled date of commencing dividend payments: –Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts less than one million yen are rounded down)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2020 (from April 1, 2020 to December
31, 2020)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period .)Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2020
36,024(5.6)
4,888(12.2)
5,206
(9.6)
3,911
(2.9)
December 31, 2019
38,160
(2.0)
5,564
(6.0)
5,760
(9.0)
4,027
(7.1)
(Note) Comprehensive income: Nine months ended December 31, 2020: ¥5,310 million [13.5 %]Nine months ended December 31, 2019: ¥4,680 million [205.3 %]Basic earnings
Diluted earnings
per shareper share
Nine months ended
Yen
Yen
December 31, 2020
70.05–
December 31, 2019
69.27–
(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

As of December 31, 2020
100,400
73,998
As of March 31, 2020
100,896
71,647(Reference) Equity: As of December 31, 2020: ¥73,172 million
As of March 31, 2020: ¥70,839 million

72.9
70.2

2. Dividends
1stquarter-end
Yen

Annual dividends
2nd
3rd
Fiscal yearquarter-end
quarter-end
end
Yen

Total

Yen

Yen

Yen

12.00
Year ended March 31, 2020
12.00
Year ending March 31, 2021
Year ending March 31, 2021
(Forecast)(Note) Revisions to the cash dividends forecasts most recently announced: None

12.00

24.00

12.00

24.00

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2021 (from April 1, 2020 to March
31, 2021)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings
Net sales
Operating profit
Ordinary profit
to owners of parent
per share
Year ending
Million yen% Million yen% Million yen% Million yen%
Yen
March 31, 2021
49,000(5.0)
6,800 (13.4)
7,000 (12.7)
4,800 (14.4)
86.42(Note) Revisions to the financial results forecast most recently announced: None
* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2020: 55,877,263 shares
March 31, 2020: 58,948,063 shares2) Total number of treasury shares at the end of the period:
December 31, 2020: 335,838 shares
March 31, 2020: 1,900,015 shares
3) Average number of shares during the period:
Nine months ended December 31, 2020: 55,842,155 shares
Nine months ended December 31, 2019: 58,145,828 shares* These quarterly financial results are outside the scope of quarterly review by certified public accountants or audit
firms* Explanation regarding the appropriate use of operating results forecasts and other special items
Forward-looking statements such as operating results forecasts and other projections contained in this report are
based on information currently available to the Company and certain assumptions deemed reasonable. Actual results
may differ significantly from these forecasts due to a wide range of factors. For the assumptions underlying theoperating results forecasts and cautionary notes concerning the ir use, please refer to “(3) Explanation ofConsolidated Financial Results Forecast and Other Forward-looking Information” under “1. Qualitative Information
on Quarterly Financial Results for the Period under Review” on page 4 of the attached documents to th e quarterly
financial statements.

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ............................2(1) Explanation of Operating Results ..............................................................................................2(2) Explanation of Financial Position ..............................................................................................4(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .......4
2. Quarterly Consolidated Financial Statements and Primary Notes .......................................................5(1) Quarterly Consolidated Balance Sheets ......................................................................................5(2) Quarterly Consolidated Statements of Income and Comprehensive Income .....................................7(3) Notes to Quarterly Consolidated Financial Statements ..................................................................9(Notes on going concern assumption) ........................................................................................9(Notes in the case of significant changes in shareholders’ equity) ...................................................9(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) ..9(Segment information, etc.) .................................................................................................... 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Japanese economy during the nine months ended December 31, 2020 deteriorated sharply against the
backdrop of the spread of the novel coronavirus disease (COVID-19) and the issuing of the state of emergency
declaration. After the lifting of the declaration, signs of recovery were seen mainly in individual consumption
amid gradual resumption of economic activities. However, there is a risk that economic activities will slow down
again due mainly to the reissuing of the state of emergency declaration following the recent surge in infection
cases. The pace of recovery in overseas economies is also expected to be sluggish as the spread of COVID-19
infection has not been contained in the U.S., Europe and many parts of the world.
Under these circumstances, for the nine months ended December 31, 2020 (from April 1, 2020 to December
31, 2020), the Group posted net sales of ¥36,024 million (down 5.6% year-on-year), operating profit of ¥4,888
million (down 12.2% year-on-year), ordinary profit of ¥5,206 million (down 9.6% year-on-year) and profit
attributable to owners of parent of ¥3,911 million (down 2.9% year-on-year), all of which fell below the previous
year’s results.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, remained sluggish both in Japan and abroad, affected by
the global production adjustments for automobiles and tires amid the spread of COVID-19. However, sales areon a recovery track as production activities bottomed out in the first quarter and are returning to normal gradually.
Sales of carbon disulfide for rayon and cellophane, and sodium sulfate for bath agents and detergents remainedsluggish.
(Organic chemicals)
Regarding cyanuric acid derivatives for disinfectants, while sales of agents for swimming pools were stagnant
in the domestic market, affected by the cancellation of swimming lessons at schools due to the spread of COVID19, sales of agents for plumbing systems (sanitary devices) were strong with increased demand for disinfection
and sterilization as a result of rising awareness of hygiene at homes. Sales remained strong in the U.S. market
with increased demand for agents for home swimming pools, supported by favorable weather conditions fromspring and restrictions on outings.
(Fine chemicals)
Regarding Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability Preservative) for printed wiringboards, sales topped the previous year’s result on the back of recovery in the electronics market mainly in China
and Taiwan. Sales of advanced & specialty chemicals such as epoxy resin curing agent (imidazoles) grew in newly
developed products although sales were affected by the deterioration in market conditions in products forautomobile-related use.
As a result, net sales for the chemicals operations segment were ¥21,983 million (down 3.7% year-on-year),and segment profit was ¥3,892 million (down 9.8% year-on-year), both falling below the previous year’s results.
2) Housing Materials operations
With the spread of COVID-19, there has been a strong sense of uncertainty over the prospects of domestic
and foreign economies, causing a wait-and-see attitude to continue as seen in a growing trend of investments
being deferred. Given the weakness in housing starts and capital investment, sales of interior, exterior finishes
and paving materials and exterior products remained sluggish.
As a result, net sales for the housing materials operations segment were ¥13,356 million (down 9.3% yearon-year), and segment profit was ¥2,256 million (down 12.4% year-on-year), both falling below the previous
year’s results.
2

Reference information[Sales results](Million yen)

Nine months ended
December 31, 2019(from April 1, 2019
to December 31, 2019)

Segment name

Nine months ended
December 31, 2020
(from April 1, 2020
to December 31, 2020)

YoY change (%)

Chemicals operations
Inorganic chemicals

9,212

7,608

82.6

Organic chemicals

7,467

8,188

109.7

Fine chemicals

6,153

6,185

100.5

Subtotal

22,832

21,983

96.3

Interior, exterior finishes andpaving materials

1,268

1,108

87.4

Exterior products

13,462

12,24891.0

Subtotal

14,731

13,356

90.7

37,56435,340

94.1

596

684

114.7

38,16036,024

94.4

Housing Materials operations

Total of reportable segments
Other
Total
(Note) Figures above are exclusive of consumption taxes.

[Overseas net sales]
Nine months ended December 31, 2019(from April 1, 2019 to December 31, 2019)

Nine months ended December 31, 2020
(from April 1, 2020 to December 31, 2020)

Net sales(Million yen)

Net sales(Million yen)Overseas net sales toconsolidated net sales (%)

Overseas net sales toconsolidated net sales (%)

Asia

5,644

14.8

5,103

14.1

North America

3,892

10.2

4,496

12.5

Other regions

1,457

3.8

1,405

3.9

Total

10,99428.8

11,00430.5

Consolidated net
sales

38,16036,0243

(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets decreased by ¥495 million from the end of the previous fiscal year to ¥100,400 million. Major
increases were ¥2,638 million in investment securities and ¥2,175 million in construction in progress, and a major
decrease was ¥3,662 million in cash and deposits.
Liabilities decreased by ¥2,845 million from the end of the previous fiscal year to ¥26,402 million. Major
decreases were ¥720 million in income taxes payable and ¥610 million in current portion of long-term borrowings.
Net assets increased by ¥2,350 million from the end of the previous fiscal year to ¥73,998 million. Major
increases were ¥1,810 million in treasury shares and ¥1,400 million in valuation difference on available-for-salesecurities, and a major decrease was ¥781 million in retained earnings.
As a result, equity ratio rose to 72.9%, from 70.2% at the end of the previous fiscal year.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The full-year financial results forecast has not been changed from the most recent plan (announced on October27, 2020). Assumptions for the exchange rates of major currencies are ¥105 to U.S. dollar and ¥120 to Euro.

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2020
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
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, 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

5

As of December 31, 2020

26,607
13,0572,095
11,000
6,912
47
3,100
283
(0)
63,103

22,945
12,4202,556
11,999
6,259
38
2,878
285
(0)
59,382

5,148
3,929
8,849
736
651
19,315
143

5,034
3,271
8,853
2,911
538
20,60999

16,607
1,159
570
(3)
18,33337,792
100,896

19,246533
532(3)20,30841,018100,400

(Million yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable – trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
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 (andother officers)
Retirement benefit liability
Asset retirement obligations
Provision for share-based remuneration
Other
Total non-current liabilities
Total liabilities
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 assets

6

As of December 31, 2020

6,530
415
2,730
693
1,356
6,022
17,747

6,184
347
2,530
83
636
4,539
14,320

7,157
1
1,111

7,974
4
1,111

88

73

2,201
379
23
537
11,50029,248

2,131
379
29
377
12,082
26,402

6,867
5,815
56,063(2,183)66,5636,867
5,740
55,282(373)
67,517

1,972
(4)
2,533
(109)
(115)
4,276
808
71,647
100,896

3,372
－
2,533
(157)
(94)
5,655
825
73,998100,400

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended December 31(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Transportation and storage costs
Advertising expenses
Salaries
Retirement benefit expenses
Provision for retirement benefits for directors (and otherofficers)
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest 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
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Nine months
ended December 31, 2019
38,16022,767
15,392Nine months
ended December 31, 2020
36,02421,807
14,216

3,355
510
1,675
132

3,365
296
1,671
153

15

13

956
3,182
9,828
5,564

861
2,966
9,328
4,888

14
418
31
463

33
397
78
510

11
99
120
25
9
266
5,760

16
93
77
－
5
192
5,206

44
1
–
45

35
0
478
513

10
–
–
10
5,796
1,730
4,065
37
4,027

16
38
7
63
5,656
1,725
3,931
19
3,911

7

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31(Million yen)

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-controllinginterests

Nine months
ended December 31, 2019
4,065

Nine months
ended December 31, 2020
3,931

616
(8)
(10)
17
615
4,680

1,401
4
(47)
20
1,379
5,310

4,640

5,290

39

20

8

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)(Purchase of treasury shares)
The Company resolved at its Board of Directors’ meeting held on May 26, 2020 to purchase its treasury sharespursuant to the provisions of the articles of incorporation, as set forth in Article 459, Paragraph 1 of the Companies
Act, and purchased 1,508,700 shares of treasury shares. As a result, during the nine months ended December 31,
2020, treasury shares increased by ¥1,605 million.
(Cancellation of treasury shares)
The Company resolved at its Board of Directors’ meeting held on May 26, 2020 to cancel its treasury sharespursuant to the provisions in Article 178 of the Companies Act, and cancelled 3,070,800 shares of treasury shares.
As a result, during the nine months ended December 31, 2020, capital surplus, retained earnings and treasury shares
decreased by ¥75 million, ¥3,338 million and ¥3,413 million, respectively.
(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements )(Calculation of tax expenses)
We make a reasonable estimate of the effective tax rate after the application of tax effect accounting to profit
before income taxes for the current fiscal year, including the third quarter under review, and multiply profit before
income taxes for the quarter by the estimated effective tax rate.
Income taxes – deferred is included in income taxes.

9

(Segment information, etc.)[Segment information]
I. For the nine months ended December 31, 2019 (from April 1, 2019 to December 31, 2019)
Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
operations

Housing
Materials
operations

Total

Other
(Note) 1

Total

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Net sales
Net sales to outside
22,832
14,731 37,564
596
38,160－38,160
customers
Inter-segment net sales
0
2
3
180
183
(183)
－
or transfers
Total
22,833
14,734 37,567
776
38,344(183)
38,160
Segment profit
4,317
2,575
6,893
56
6,950
(1,386)
5,564(Notes) 1. The “Other” category represents business segments not included in the reportable segments, and includes
the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(1,386) million includes inter-segment eliminations of ¥0 million
and corporate expenses in the amount of ¥(1,386) million not allocated to each reportable segment. The
relevant corporate expenses are mainly general and administrative expenses not allocated to thereportable segments.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.
II. For the nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
operations

Housing
Materials
operations

Total

Other
(Note) 1

Total

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Net sales
Net sales to outside
21,983
13,356 35,340
684
36,024－36,024
customers
Inter-segment net sales
0
1
2
214
217
(217)
－
or transfers
Total
21,983
13,358 35,342
898
36,241(217)
36,024
Segment profit
3,892
2,256
6,149
92
6,242
(1,353)
4,888(Notes) 1. The “Other” category represents business segments not included in the reportable segments, and includes
the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(1,353) million includes inter-segment eliminations of ¥0 million
and corporate expenses in the amount of ¥(1,354) million not allocated to each reportable segment. The
relevant corporate expenses are mainly general and administrative expenses not allocated to thereportable segments.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

10