SHIKOKU CHEMICALS CORPORATION

Stock Code：4099
April 25, 2018

Summary of Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
[under Japanese GAAP](Amounts less than one million yen are rounded down)

1．Consolidated financial results for the fiscal year ended March 31, 2018(from April 1, 2017 to March 31, 2018)(1) Consolidated operating results（Millions of yen, except per share amounts; Percentages indicate year-on-year changes ）Fiscal year ended
Fiscal year ended
March 31, 2018
March 31, 2017%%
Net sales
50,7912.749,467(1.6)
Operating income
8,167
4.0
7,855(1.5)
Ordinary income
8,450
1.9
8,294
1.2
Net income attributable to owners of the6,610
13.2
5,837
20.2
ParentBasic earnings per share (Yen)
113.15
99.91
Diluted earnings per share (Yen)
Return on equity (%)
10.3
10.1
Ratio of ordinary income to total assets
9.7
10.3
(%)
Ratio of operating income to net sales (%)
16.1
15.9
Note: Comprehensive income
7,730 million yen[1.0%] 7,650 million yen [105.6%]
Reference: Share of profit of entities－ million yen－ million yen
accounted for using equity method(2) Consolidated financial position

Total assets
Total equity
Ratio of equity attributable to owners of the Parent
Equity per share attributable to owners of the Parent (Yen)
Reference: Equity attributable to owners of the Parent

March 31, 2018

(Millions of yen)March 31, 2017

90,94968,02974.0%
1,151.38
67,264 million yen

83,432
61,50372.9%
1,041.24
60,834 million yen

Fiscal year ended
March 31, 2018
9,676
(4,146)(1,417)
26,872(Millions of yen)
Fiscal year ended
March 31, 20177,100(3,438)(976)
22,817(3) Consolidated Cash Flows

Operating activities
Investing activities
Financing activities
Cash and cash equivalents at the end of period

SHIKOKU CHEMICALS CORPORATION

Stock Code：4099
April 25, 2018
2．Dividends
Year ending
March 31, 2019
(Forecast)Year ending
March 31, 2018Year ending
March 31, 2017

11.00
11.00
22.00

11.00
11.00
22.00

8.50
10.00
18.50

1,285

1,080

19.4

18.5

2.0

1.9

Annual cash dividends per share (Yen)
1st quarter end
2nd quarter end
3rd quarter end
Fiscal year endTotalTotal amount of annual cash dividends(Millions of yen)
Consolidated dividend payout ratio (%)
Consolidated dividend on equity
attributable to owners of the Parent (%)

24.7

3．Forecast of consolidated operating results for the year ending March 31, 2019(from April 1, 2018 to March 31, 2019)（Millions of yen, except per share amounts; Percentages indicate year-on-year changes ）Six months ending
Year ending
September 30, 2018
March 31, 2019%%
Net sales
25,1000.7
52,2002.8
Operating income
3,000 (24.4)
7,300 (10.6)
Ordinary income
3,300 (21.9)
7,600 (10.1)
Net income attributable to owners of the Parent
2,200 (23.5)
5,200 (21.3)
Basic earnings per share (Yen)
37.66
89.01
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

March 31, 2018
58,948,063 shares
527,254 shares

March 31, 2017
58,948,063 shares
523,062 shares

Average number of shares outstanding during the period

Fiscal year ended
March 31, 2018
58,422,289 sharesFiscal year ended
March 31, 2017
58,428,977 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 are
based 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(Millions of yen)March 3120172018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
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
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

1

22,817
13,558
1,299
5,183
34
2,420
698
238
ᇞ146,249

27,872
13,927
1,524
5,719
45
2,623
725
178
ᇞ1
52,617

5,749
4,997
8,794
74
657
20,273

5,541
4,633
8,835
77
608
19,695

293
29
323

206
17
224

15,728
4
97
333
426
ᇞ3
16,58637,18383,432

17,596
4100
299
414
ᇞ3
18,411
38,331
90,949

Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)March 3120172018
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for directors' bonuses
Notes payable - facilities
Electronically recorded obligations-facilities
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
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

27,118371
1,9301341,342
946
104
78
117
436
2,534
15,114

7,769
405
1,930
120
1,396
1,677
240
79
85
109
2,259
16,075

1,562
717
1,344
84
2,169
344
592
6,814
21,929

1,520
949
1,111
110
2,211
377
563
6,845
22,9206,867
5,741
42,302
ᇞ315
54,596

6,867
5,741
47,686
ᇞ321
59,974

4,163
2
2,301
ᇞ84
ᇞ144
6,237
668
61,50383,432

4,991
18
2,533
ᇞ127
ᇞ126
7,290
764
68,02990,949

Consolidated Statements of Income(Millions of yen)
Fiscal year ended March 31
2017
2018
Net sales
Cost of sales
Gross profitSelling, general and administrative expenses
Transportation and warehousing expenses
Advertising expenses
Salaries
Provision for directors' bonuses
Retirement benefit expenses
Provision for directors' retirement benefits
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
Loss on sales of notes receivable - trade
Sales discounts
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profitExtraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Insurance income
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

349,467
29,236
20,23150,791
29,917
20,873

4,005
617
2,138
79
191
21
1,235
4,087
12,375
7,855

4,025
623
2,197
79
183
18
1,310
4,268
12,706
8,167

9575
63
649

11
458
21
491

17
1
121
49
20
210
8,294

16
0
124
56
8207
8,450

130－
14
28

0
16
351
401
769

12
38
51
8,271
2,267
105
2,373
5,897
60
5,837

3
58
62
9,157
2,767
ᇞ275
2,492
6,665
55
6,610

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended March 31
2017
2018
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for landForeign 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

5,897

6,665

1,715
ᇞ36－ᇞ175
1,753
7,650

840
16232
ᇞ42
18
1,064
7,730

7,593
57

7,663
67

Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended March 3120172018
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Insurance income
Subsidy income
Loss on retirement of property, plant and equipment
Loss (gain) on sales of property, plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from insurance income
Proceeds from subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Proceeds from purchase of shares of subsidiaries resulting in change
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Payments of loans receivableCollection of loans receivable
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 loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, 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 period

5

8,271
1,645
ᇞ14
ᇞ12
53
ᇞ585
17
ᇞ0－
ᇞ14
38
ᇞ0
ᇞ3777
ᇞ265
ᇞ94
ᇞ185
9,627
585
ᇞ17－
14
ᇞ3,109
7,100

9,157
2,318
16
51
50
ᇞ469
16
ᇞ16
ᇞ351
ᇞ401
58
3
ᇞ628
ᇞ728
706
138
551
10,474
469
ᇞ16
351
401
ᇞ2,0039,676

ᇞ3,683
54
ᇞ58
ᇞ130
－
ᇞ20
400
－
0－
ᇞ1
ᇞ3,438

ᇞ2,562
4
ᇞ21
ᇞ41
12
ᇞ792
245
ᇞ0
0
ᇞ1,0008
ᇞ4,146－
100
ᇞ165
ᇞ6
ᇞ993
ᇞ391
ᇞ976
56
2,741
20,075
22,817

ᇞ19100
ᇞ222
ᇞ6
ᇞ1,226
ᇞ3
ᇞ39
ᇞ1,417
ᇞ55
4,055
22,817
26,872