Consolidated Financial Results
for the Fiscal Year Ended December 31, 2022
[Japanese GAAP]
January 27, 2023
Company name: SHIKOKU KASEI HOLDINGS CORPORATION(Formerly SHIKOKU CHEMICALS CORPORATION)
Stock exchange listing: Tokyo Stock Exchange
Code number: 4099
URL: https://www.shikoku.co.jp/
Representative: Mitsunori Watanabe, President
Contact: Yoshiaki Ando, Executive Officer, General Manager
Phone: +81-877-22-4111
Scheduled date of annual general shareholders’ meeting: March 29, 2023
Scheduled date of commencing dividend payments: March 8, 2023
Scheduled date of filing annual securities report: March 29, 2023
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled(Amounts less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2022 (from April 1, 2022 to December
31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2022
46,566
–
6,462
–
7,270
–
4,997
–
March 31, 2022
54,137
9.2
8,400
13.5
9,291
16.2
6,878
19.4
(Note) Comprehensive income: Fiscal year ended December 31, 2022: ¥3,988 million [–%]
Fiscal year ended March 31, 2022: ¥8,138 million [5.3%]
Dilutedearnings
per share

Basic earnings
per share

Return on
equityRatio ofordinary profit
to total assets

Ratio ofoperating profit
to net sales

Fiscal year ended
Yen
Yen
%
%
%
December 31, 2022
93.78
–
6.2
6.3
13.9
March 31, 2022
125.52
–
8.8
8.4
15.5
(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal year ended December 31, 2022: –Fiscal year ended March 31, 2022: –The Company has changed the last day of the fiscal year from March 31 to December 31 beginning with the fiscal
year under review following the approval of “Partial Amendments to the Articles of Incorporation (2)” at the 102nd
Annual General Meeting of Shareholders held on June 24, 2022. All consolidated subsidiaries of the Company havealso changed the date of their fiscal year-end to December 31. The fiscal year under review is therefore a transitional
period with an irregular accounting period comprising the nine months from April 1, 2022 to December 31, 2022.
Therefore, the percentage changes from the previous corresponding period are not presented.
(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Net assets per share

Million yen%

Yen81,806
As of December 31, 2022
117,176
80,908
As of March 31, 2022
113,805(Reference) Equity: As of December 31, 2022: ¥81,323 million
As of March 31, 2022: ¥80,049 million

69.4
70.3

1,541.17
1,487.55

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents
at end of fiscal year

Million yen

Million yen

Million yen

Million yen

2,919
5,089

(3,669)(5,087)1,423(1,809)36,68335,755

Fiscal year ended
December 31, 2022
March 31, 2022
2. Dividends
1stquarterend
Fiscal year ended
March 31, 2022
Fiscal year ended
December 31,
2022
Fiscal year ending
December 31,
2023 (Forecast)

Annual dividends
2nd
3rd
Yearquarter- quarterend
end
end

Total

Total
dividends(annual)Ratio of
Payout ratio dividends to(consolidated)
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–

12.00

–

12.00

24.00

1,304

19.1

1.7

–

13.00

–

13.00

26.00

1,375

27.7

1.7

–

13.00

–

13.00

26.00

28.0

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2023 (from January 1,
2023 to December 31, 2023)(% indicates changes from the previous corresponding period.)
Net sales
Million yen

Operating profit% Million yen

Ordinary profit% Million yen

Profit attributableto owners of parent% Million yen

Basic earnings
per share%

Yen

Full year
64,000
–
6,500
–
7,000
–
4,900
–
92.86
The Company has changed the last day of the fiscal year from March 31 to December 31 beginning with the fiscal
year under review. All consolidated subsidiaries of the Company have also changed the date of their fiscal year-end
to December 31. The fiscal year under review is therefore a transitional period with an irregular accounting period
comprising the nine months from April 1, 2022 to December 31, 2022. Therefore, the percentage changes from theprevious corresponding period are not presented.
* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) 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(3) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2022: 52,973,563 shares
March 31, 2022: 54,018,563 shares2) Total number of treasury shares at the end of the period:
December 31, 2022: 206,031 shares
March 31, 2022: 205,788 shares
3) Average number of shares during the period:
Fiscal year ended December 31, 2022: 53,290,127 sharesFiscal year ended March 31, 2022: 54,802,469 shares

(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Fiscal Year Ended December 31, 2022 (from April 1, 2022 to
December 31, 2022)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
December 31, 2022
March 31, 2022

Ordinary profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen%

38,82748,435

–
8.2

5,355
7,523

–
18.9

6,370
8,582

–
20.2

4,451
6,523

–
22.7

Basic earnings
per share
Fiscal year ended
December 31, 2022
March 31, 2022

Operating profit

Dilutedearnings
per share

Yen

Yen

83.54
119.04––(2) Non-Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Net assets per share

Million yen%

Yen73,275
As of December 31, 2022
108,029
72,549As of March 31, 2022
104,745(Reference) Equity: As of December 31, 2022: ¥73,275 million
As of March 31, 2022: ¥72,549 million

67.8
69.3

1,388.66
1,348.19* These annual financial results are outside the scope of audit by certified public accountants or audit firms* Explanation regarding the appropriate use of financial results forecasts and other special items
The above financial results forecasts are based on information currently available to the Company as of the dateof this report, and do not constitute a guarantee of future results. Actual results may differ significantly from these
forecasts due to a wide range of factors. For information about the above financial results forecasts, please refer to“(4) Future Outlook” under “1. Overview of Operating Results, etc.” on page 4 of the attached documents to thefinancial statements.

Table of Contents
1. Overview of Operating Results, etc. ........................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review............................................................ 2(2) Overview of Financial Position for the Fiscal Year under Review ........................................................... 3(3) Overview of Cash Flows for the Fiscal Year under Review...................................................................... 3(4) Future Outlook .......................................................................................................................................... 4(5) Basic Policy regarding Distribution of Earnings and Dividends for the Current and Next Fiscal Years .. 4
2. Basic Policy on Selection of Accounting Standards ................................................................................... 4
3. Consolidated Financial Statements and Primary Notes ............................................................................ 5(1) Consolidated Balance Sheet .................................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income .......................................................... 7(3) Consolidated Statement of Changes in Shareholders’ Equity ................................................................... 9(4) Consolidated Statement of Cash Flows ................................................................................................... 11(5) Notes to Consolidated Financial Statements ......................................................................................... 12(Notes on going concern assumption) ................................................................................................... 12(Segment information, etc.) ................................................................................................................... 12(Per share information) ......................................................................................................................... 15(Significant subsequent events) ............................................................................................................. 16

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
The Company has changed the last day of the fiscal year from March 31 to December 31 beginning with thefiscal year under review. All consolidated subsidiaries of the Company have also changed the date of their fiscal
year-end to December 31. The fiscal year under review is therefore a transitional period with an irregularaccounting period comprising the nine months from April 1, 2022 to December 31, 2022. For this reason, theresults for the previous fiscal year have been adjusted to reflect the same period as the fiscal year under review
for the purpose of year-on-year comparisons.
The Japanese economy during the fiscal year under review continued to recover with personal consumption
showing signs of recovery as restrictions on economic activities were eased and such activities were normalized.
However, uncertainty increased, with the Bank of Japan ending the year by expanding the range of fluctuations
tolerated under its long-term interest rate operations, as well as substantial movements in the foreign exchange
and interest rate environments. Overseas economies saw the continuation of a dramatic rise in prices andmonetary tightening in response to this rise, especially in Europe and the United States, while the economic
slowdown in China has been thrown into relief by a renewed surge in cases of infection. The economic
environment surrounding the Company therefore has become increasingly severe.
Under these circumstances, for the fiscal year under review, the Group posted net sales of ¥46,566 million(up 18.7% year-on-year), operating profit of ¥6,462 million (up 4.9% year-on-year), ordinary profit of ¥7,270
million (up 8.2% year-on-year) and profit attributable to owners of parent of ¥4,997 million (up 4.2% year-onyear), all of which increased from the previous fiscal year’s results. In addition, net sales, operating profit,
ordinary profit, and profit attributable to owners of parent all hit record highs, driven by improved profitability
in export sales as a result of factors such as yen depreciation in exchange rates and the appropriate price passthrough of soaring raw materials prices.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, were subdued, with an apparent slackening of demand
due to a decline in automobile production resulting from semiconductor shortages and a decline in operation attire factories in China associated with the spread of COVID-19. Domestic sales of carbon disulfide for rayon
and cellophane were robust. Regarding domestic sales of sodium sulfate for bath agents and detergents, theCompany strove to improve profitability by the price pass-through of the impact of the sharp rise in procurement
prices due to yen depreciation in exchange rates.
(Organic chemicals)
Regarding chlorinated isocyanurates for disinfectants, the domestic market performed better than theprevious fiscal year mainly due to a recovery in sales of agents for swimming pools. In the U.S. market, the poolmarket continues to be brisk, and production continues at high capacity. In addition, both sales and profits werehigher than the previous fiscal year as the Company passed soaring resource prices and distribution costs on
selling prices.
(Fine chemicals)
Regarding electronic chemicals, particularly Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability
Preservative) for printed wiring boards, sales were sluggish due to the lockdown in Shanghai and adjustments inthe semiconductor market. Sales of advanced & specialty chemicals surpassed those of the previous fiscal year,
mainly thanks to an increase in demand for resin modifier (glycoluril derivatives, etc.) and the acquisition of new
projects for semiconductor process materials.

2

As a result, net sales for the chemicals operations segment were ¥32,380 million (up 27.0% year-on-year), andsegment profit was ¥6,491 million (up 13.2% year-on-year), both surpassing the previous fiscal year’s results.
2) Housing Materials operations
The number of new housing starts continued to be weak for owned houses, and demand for interior, exterior
finishes and paving materials and exterior products remained sluggish. However, net sales increased from theprevious fiscal year due to the penetration of the price revision implemented in April 2022. On the other hand,the price revision failed to absorb soaring prices of raw materials, and therefore profitability declined from theprevious fiscal year.
As a result, net sales for the housing materials operations segment were ¥13,353 million (up 4.5% year-onyear), and segment profit was ¥1,490 million (down 12.0% year-on-year).
Reference information[Overseas net sales]
Nine months ended December 31, 2021
(from April 1, 2021 to December 31, 2021)

Fiscal year ended December 31, 2022
(from April 1, 2022 to December 31, 2022)

Net sales(Million yen)

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

Overseas net sales toconsolidated net sales (%)

Asia

6,348

16.2

4,688

10.1

North America

5,587

14.2

11,274

24.2

Other regions

1,560

4.0

1,196

2.6

Total

13,49534.4

17,16036.9

Consolidated net
sales

39,22946,566(Note) Net sales are classified based on the actual destinations of products(2) Overview of Financial Position for the Fiscal Year under Review(Status of assets, liabilities and net assets)
Total assets increased by ¥3,370 million from the end of the previous fiscal year to ¥117,176 million. Major
increases were ¥3,833 million in machinery, equipment and vehicles and ¥1,397 million in merchandise andfinished goods.
Liabilities increased by ¥2,472 million from the end of the previous fiscal year to ¥35,370 million. A major
increase was ¥3,517 million in long-term borrowings.
Net assets increased by ¥897 million from the end of the previous fiscal year to ¥81,806 million. A major
increase was ¥2,333 million in retained earnings.
As a result, equity ratio fell to 69.4%, from 70.3% at the end of the previous fiscal year.
(3) Overview of Cash Flows for the Fiscal Year under Review
Cash flows provided by operating activities totaled ¥2,919 million (a decrease of ¥2,170 million year-onyear). Major cash inflows were profit before income taxes of ¥6,848 million and depreciation of ¥2,112 million,
while a major cash outflow was income taxes paid of ¥3,351 million.
Cash flows used in investing activities totaled ¥3,669 million (a decrease of ¥1,417 million year-on-year).
The major component was purchase of property, plant and equipment of ¥3,018 million.
Cash flows provided by financing activities totaled ¥1,423 million (an increase of ¥3,232 million year-onyear). A major cash inflow was proceeds from long-term borrowings of ¥4,600 million, while major cash
outflows were dividends paid of ¥1,335 million and purchase of treasury shares of ¥1,328 million.

3

As a result, cash and cash equivalents totaled ¥36,683 million (an increase of ¥927 million from the end of
the previous fiscal year).

(4) Future Outlook
Consolidated financial results forecast for the fiscal year ending December 31, 2023 is as follows.
Net Sales
Fiscal year ending December
31, 2023 (full year)
Fiscal year ended December
31, 2022 (full year)
Change (%)(Million yen)
Profit attributableto owners of parent

Operating profit

Ordinary profit

64,000

6,500

7,000

4,900

46,566

6,462

7,270

4,997

–

–

–

–

(Notes) 1. The major exchange rates assumed in the above financial results forecast were ¥125 to $1 and ¥135 to€1.
2. The Company has changed the last day of the fiscal year from March 31 to December 31 beginningwith the fiscal year under review. All consolidated subsidiaries of the Company have also changed thedate of their fiscal year-end to December 31. The fiscal year under review is therefore a transitional
period with an irregular accounting period comprising the nine months from April 1, 2022 to December
31, 2022. Therefore, the percentage changes from the previous corresponding period are not presented.
3. The above financial results forecasts are based on information currently available to the Company as ofthe date of this report, and do not constitute a guarantee of future results. Actual results may differ
significantly from these forecasts due to a wide range of factors.

(5) Basic Policy regarding Distribution of Earnings and Dividends for the Current and Next Fiscal Years
As a basic policy for shareholder returns, the Company aims to achieve “a total payout ratio of 50% based on
consolidated financial results” under the “Challenge 1000” long-term vision towards 2030.
The Company has decided to increase the annual dividend of ¥24 per share by ¥2 as a commemorative dividend
to celebrate the Company’s 75th anniversary of establishment on October 10, 2022, bringing the dividend for the
fiscal year under review to ¥26 per share, or a year-end dividend of ¥13 per share after deducting the interim
dividend already paid (¥13).
As for the interim dividend for the fiscal year ending December 31, 2023, in consideration of the above policy,
business performance and financial situation, the Company plans to pay a dividend of ¥13 per share, which is madeup of ¥12 per share and an additional ¥1 per share. The Company also plans to increase the year-end dividend of¥12 by ¥1 and expects to pay ¥13 per share. As a result, the annual dividend forecast for the fiscal year ending
December 31, 2023 will be ¥26 per share.

2. Basic Policy on Selection of Accounting Standards
The Group plans to adopt Japanese GAAP in preparing its consolidated financial statements for the time
being, given that the Group has little need to raise funds from overseas and considering the burden of preparing
its consolidated financial statements based on the International Financial Reporting Standards (IFRS). However,the Group will consider the adoption of IFRS depending on future needs.

43. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet(Million yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable – trade
Electronically recorded monetary claims – operating
Accounts receivable – trade
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
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of December 31, 2022

23,155
1,271
2,622
13,044
15,600
7,373
41
3,689
870
(1)
67,66823,283879
3,166
13,362
16,400
8,770
37
4,140
602
(0)
70,642

5,238
4,136
8,523
3,776
692
22,366
356

5,780
7,969
8,509
687
685
23,632501

22,331
319
364
403
(3)
23,414
46,137
113,805

21,008
412
411
572
(3)
22,40046,533
117,176(Million yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable – trade
Electronically recorded obligations – operating
Short-term borrowings
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Notes payable – facilities
Electronically recorded obligations-facilities
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 awards
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
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, 2022

7,993
471
2,530
2,074
1,449
1,849
116
36
49
2,537
19,109

7,483
570
2,530
3,083
1,105
160
117
25
140
3,068
18,284

11,017295
1,008

14,534
49
1,004

90

67

625
380
50
318
13,78832,897

656
381
64
328
17,08535,3706,867
5,740
60,475(250)
72,833

6,867
5,711
62,808(240)
75,147

4,853
2,298
32
30
7,215
859
80,908113,805

3,766
2,288
136
(15)
6,175
482
81,806
117,176

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(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
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Donations
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on revision of retirement benefit plan
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

For the fiscal year ended
March 31, 2022
54,13731,363
22,774

For the fiscal year ended
December 31, 2022
46,566
27,723
18,843

5,964
473
2,228
149

5,337
580
1,695
108

17

12

1,392
4,147
14,374
8,400

1,180
3,465
12,381
6,462

66
478
359
65
969

74
395
334
28
832

23
50
4
78
9,291

19
–
4
24
7,270

1
856
28
885

–
12
21
33

0
23
436
6
–
466
9,710
3,145
(319)
2,825
6,884
6
6,878

–
31
400
–
24
456
6,848
1,666
159
1,826
5,022
24
4,997

7

Consolidated Statement of Comprehensive Income(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

For the fiscal year ended
March 31, 2022
6,884

For the fiscal year ended
December 31, 2022
5,022

1,073
27
122
29
1,253
8,138

(1,090)–103(46)(1,033)
3,988

8,124

3,967

14

21

8

(3) Consolidated Statement of Changes in Shareholders’ Equity
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Million yen)
Shareholders’ equity
Share capital

Capital surplus

6,867

5,740

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Cancellation of treasury shares
Reversal of revaluation reserve
for land
Disposal of treasury shares bystocks payment trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Retainedearnings

Treasury shares

57,140

(236)

Total
shareholders’equity69,512(1,326)(1,326)

6,878

6,878
(2,474)2,452(2,452)(2,474)
–

235

–
6,867

–
5,740

235

3,334
60,475

8

8

(13)
(250)

3,321
72,833

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesCancellation of treasury
shares
Reversal of revaluation
reserve for land
Disposal of treasury
shares by stocks payment
trust
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

3,789

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

Total
accumulated
othercomprehensive income

(27)

2,533

(90)

0

6,205

Noncontrollinginterests

847

Total net
assets76,566(1,326)
6,878(2,474)
–
235
8

1,064

27

(235)

122

29

1,009

11

1,021

1,064
4,853

27
–

(235)
2,298

122
32

29
30

1,009
7,215

11
859

4,342
80,9089

Fiscal year ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(Million yen)
Shareholders’ equity
Share capital

Capital surplus

6,867

5,740

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Cancellation of treasury shares
Reversal of revaluation reserve
for land
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Retainedearnings

Treasury shares

60,475

(250)

Total
shareholders’equity72,833(1,335)(1,335)

4,997

4,997
(1,328)
1,338(1,338)(1,328)
–

9

9

(29)

–
6,867

(29)
5,711

(29)

2,333
62,808

9
(240)

2,314
75,147

Accumulated other comprehensive income
Valuation
Revaluationdifference on
reserve foravailable-forland
sale securities

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Cancellation of treasury shares
Reversal of revaluation reserve
for land
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

4,853

2,298

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

32

30

Total
Nonaccumulated
controlling
otherinterests
comprehensive income

7,215

859

Total net
assets80,908(1,335)
4,997(1,328)–9(29)(1,086)

(9)

103

(46)

(1,039)(377)(1,416)(1,086)
3,766

(9)
2,288

103
136

(46)
(15)

(1,039)
6,175

(377)
482

897
81,80610

(4) Consolidated Statement of Cash Flows(Million yen)
For the fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Contribution to employees’ retirement benefits trust
Interest and dividend income
Interest expenses
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Subsidy income
Loss on retirement of property, plant and equipment
Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
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

11

For the fiscal year ended
December 31, 2022

9,710
2,090
436
(27)
6
(1,500)
(544)
23
6
(856)
(28)
23
(0)
(1,317)(1,627)
1,366
(440)
(44)
7,276
547
(23)
28
(2,739)
5,089

6,848
2,112
400
(19)
(64)
–
(470)
19
–
(12)
(21)
31
–
(162)
(1,693)
(574)
192
(792)
5,794
472
(17)
21
(3,351)
2,919(2,300)2,000(4,153)5(19)(1,235)––(3,018)
–
(27)
(308)

1,006

70

(391)
(5,087)(385)(3,669)

2,160
(100)
(2,474)(1,326)
(3)

4,600
(74)
(1,328)(1,335)
(3)

–

(424)

(64)
(1,809)355(1,451)
37,20735,755

(9)
1,423
253
927
35,75536,683

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Segment information, etc.)
1. Overview of reportable segments
The Group’s reportable segments are components within the Group for which discrete financial information isavailable and are regularly reviewed by the Company’s Board of Directors for the purpose of determining theallocation of management resources and evaluating performance.
Each business division of the Company formulates comprehensive strategies for domestic and overseas
businesses in relation to the products and services it handles and carries out business activities accordingly.
Therefore, the Group is comprised of segments that are classified according to products and services based on
its business divisions. The two reportable segments of the Group are “Chemicals operations” and “Housing
Materials operations.”
The “Chemicals operations” segment is engaged in the production and sale of chemical products such as
inorganic chemicals, organic chemicals and fine chemicals. The “Housing Materials operations” segment is engaged
in the production and sale of building and construction materials such as interior and exterior decorative walls,
exterior products and aluminum shutters.
2. Calculation methods of net sales, profit, loss, assets, liabilities and other items by reportable segment
The method of accounting for the business segments reported are based on the accounting methods adopted in
the preparation of the consolidated financial statements.
Profit of the reportable segments is based on operating profit.
Inter-segment net sales and transfers are based on market price.
(Change in method used to allocate segment assets)
The Group transitioned to a holding company structure by company split, effective January 1, 2023. Accordingly,
from the fiscal year under review, the Company has changed to an allocation method based on the amounts of assets
planned to be succeeded by the splitting company. As it is not possible to allocate segment assets for the previous
fiscal year using the calculation methods effective at the time of the transition to a holding company structure, theseassets have been allocated using the previous calculation method.

12

3. Information on net sales, profit (loss), assets, liabilities and other items by reportable segment
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(Million yen)
Reportable segment
Housing
Chemicals
Materials
Total
operations
operations
Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts withcustomers
Net sales to outside customers
Inter-segment net sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation
Impairment losses
Increase in property, plant andequipment and intangible
assets

Other(Note) 1

Total

Amount recorded inconsolidated
Adjustment(Note) 2 financial statements(Note) 3

12,192
13,023
9,778

–
–
–

12,192
13,023
9,778

–
–
–

12,192
13,023
9,778

–
–
–

12,192
13,023
9,778

–

1,395

1,395

–

1,395

–

1,395

–
–

16,565–

16,565––
1,181

16,565
1,181––

16,565
1,181

34,995

17,961

52,956

1,181

54,137–54,13734,995

17,961

52,956

1,181

54,137–54,137

1

1

2

273

276

(276)

–

34,996
7,545
52,061

17,962
2,576
15,56952,95910,122
67,631

1,454
171
2,192

54,413
10,29369,823(276)(1,893)43,982

54,1378,400
113,805

1,621
–

262
436

1,884
436

62
–

1,946
436

143
–

2,090
436

2,860

595

3,455

5

3,461

138

3,599

(Notes) 1. The “Other” category represents business segments not included in the reportable segments, andincludes the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(1,893) million includes inter-segment eliminations of ¥1 million
and corporate expenses in the amount of ¥(1,895) million not allocated to each reportable segment. The
relevant corporate expenses are mainly general and administrative expenses not allocated to thereportable segments.
The adjustment for segment assets of ¥43,982 million includes inter-segment eliminations of ¥(7)
million and corporate assets in the amount of ¥43,990 million not allocated to each reportable segment.
The adjustment for increase in property, plant and equipment and intangible assets of ¥138 million isthe amount of capital expenditure related to corporate assets not allocated to each reportable segment.
3. Segment profit is adjusted with operating profit on the consolidated statement of income.

13

Fiscal year ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(Million yen)
Reportable segment
Housing
Chemicals
Materials
Total
operations
operations
Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts withcustomers
Net sales to outside customers
Inter-segment net sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation
Impairment losses
Increase in property, plant andequipment and intangible
assets

Other(Note) 1

Total

Amount recorded inconsolidated
Adjustment(Note) 2 financial statements(Note) 3

10,081
14,832
7,466

–
–
–

10,081
14,832
7,466

–
–
–

10,081
14,832
7,466

–
–
–

10,081
14,832
7,466

–

1,009

1,009

–

1,009

–

1,009

–
–

12,344–

12,344––833

12,344833––

12,344833

32,38013,35345,733833

46,566–

46,56632,38013,35345,733833

46,566–

46,566

0

1

2

184

186

(186)

–

32,3806,491
48,88813,355
1,490
16,63945,736
7,981
65,527

1,017
110
2,212

46,753
8,091
67,740(186)(1,628)49,43546,566
6,462
117,176

1,769
–

229
400

1,998
400

32
–

2,031
400

81
–

2,112
400

2,821

684

3,506

9

3,516

410

3,926

(Notes) 1. The “Other” category represents business segments not included in the reportable segments, andincludes the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(1,628) million includes inter-segment eliminations of ¥(0)
million and corporate expenses in the amount of ¥(1,628) million not allocated to each reportablesegment. The relevant corporate expenses are mainly general and administrative expenses not allocatedto the reportable segments.
The adjustment for segment assets of ¥49,435 million includes inter-segment eliminations of ¥(1)million and corporate assets in the amount of ¥49,437 million not allocated to each reportable segment.
The adjustment for increase in property, plant and equipment and intangible assets of ¥410 million isthe amount of capital expenditure related to corporate assets not allocated to each reportable segment.
3. Segment profit is adjusted with operating profit on the consolidated statement of income.

14(Per share information)
Fiscal year ended March 31, 2022
(from April 1, 2021
to March 31, 2022)
Net assets per share
Basic earnings per share

Fiscal year ended December 31,
2022(from April 1, 2022
to December 31, 2022)

1,487.55 yen

1,541.17 yen

125.52 yen

93.78 yen

(Notes) 1. The Company’s shares held in the trust related to the stock compensation plan, which are recorded astreasury shares under shareholders’ equity, are included in treasury shares that are excluded from thecalculation of the average number of shares during the period when calculating basic earnings per share,
and are also included in treasury shares that are excluded from the total number of issued shares at theend of the period when calculating net assets per share.
The average number of shares during the period excluded for the fiscal year under review was 140
thousand shares, while the average number of shares during the period excluded for the previous fiscal
year was 143 thousand shares. Diluted earnings per share are not provided, as there are no dilutive
shares.
2. The basis for calculation of basic earnings per share is as follows:
Fiscal year ended March 31, 2022
(from April 1, 2021
to March 31, 2022)

Fiscal year ended December 31,
2022(from April 1, 2022
to December 31, 2022)

6,878

4,997

–

–

6,878

4,997

54,80253,290

Profit attributable to owners of parent(Million yen)Amount not attributable to commonshareholders (Million yen)
Profit attributable to owners of parent
related to ordinary shares(Million yen)
Average number of ordinary shares during
the period (Thousand shares)

3. The basis for calculation of net assets per share is as follows:
As of March 31, 2022
Total net assets (Million yen)

As of December 31, 2022

80,90881,806

Amount deducted from total net assets (Million yen)

859

482

(Non-controlling interests included in above) (Million yen)

[859]

[482]

80,04981,32353,812

52,767

Amount of net assets related to ordinary shares at end of
period (Million yen)
Number of ordinary shares used in the calculation of net
assets per share at end of period (Thousand shares)

15

(Significant subsequent events)(Transition to Holding Company Structure)
1. Transition to Holding Company Structure by Company Split
As approved by the meeting of Board of Directors held on April 28, 2022 and the Annual General Meetingof Shareholders held on June 24, 2022, the Company executed a company split on January 1, 2023, with its
wholly-owned subsidiaries SHIKOKU CHEMICALS CORPORATION (renamed from SHIKOKUCHEMICALS CORPORATION CHEMICALS OPERATIONS SPLIT PREPARATION CORPORATION on
January 1, 2023), SHIKOKU KASEI KENZAI CORPORATION (renamed from SHIKOKU CHEMICALSCORPORATION HOUSING MATERIAL OPERATIONS SPLIT PREPARATION CORPORATION on
January 1, 2023) and SHIKOKU KASEI CORPORATE SERVICE CO., LTD. (renamed from SHIKOKUCHEMICALS CORPORATION SHARED SERVICES SPLIT PREPARATION CORPORATION on January
1, 2023), and transitioned to a pure holding company structure.
The Company changed its trade name to “SHIKOKU KASEI HOLDINGS CORPORATION” on January 1,
2023.
2. Purposes of the Transition to Holding Company Structure(1) Strengthen the structure of business operations
By boldly delegating responsibility to each business subsidiary, the Company will expedite decision-making,vertically integrate the sections responsible for the production, sales, and development functions, enable a closer
and more unified organization, and implement a consistent strategy.
(2) Redefine the governance system and the roles of head office divisions
The holding company, specializing in the Group management function, is charged with the governance ofthe business subsidiaries and promoting Group-wide management strategy, including decision-making on
strategic investments and M&A activities to achieve “Challenge 1000,” to further clarify the corporate
governance structure. Back-office divisions at the head office will be split off into the shared services company
to eliminate overlapping services across the Group and optimize operations.
(3) Strengthen the development of management personnel
The Company will promote the development of future management personnel from the perspective ofsustainably strengthening management capabilities in the context of autonomous operations by businesssubsidiaries.
3. Overview of the Company Split(1) Method of the Company Split
Through the absorption-type split, with the Company as the absorption-type splitting company and theCompany’s subsidiaries, SHIKOKU CHEMICALS CORPORATION, SHIKOKU KASEI KENZAICORPORATION and SHIKOKU KASEI CORPORATE SERVICE CO., LTD. as the absorption-type successor
companies, the Company will shift to a holding company structure while maintaining its listing status.
(2) Schedule of the Company Split
Date of the resolution of the Board of Directors for the establishment of successor preparatory companies:
October 26, 2021
Date of the establishment of successor preparatory companies: January 11, 2022
Date of the resolution of the Board of Directors for the absorption-type company split agreement: April 28,
2022
Date of conclusion of the absorption-type company split agreement: April 28, 2022
Date of the resolution of the Annual General Meeting of Shareholders for the absorption-type company split
agreement: June 24, 2022
Effective date of the company split: January 1, 2023

16

(3) Overview of the Successor Companies(Chemicals operations)(1) Trade name(2) Address(3) Name and title ofrepresentative(4) Nature of business(5) Amount of capital(6) Founded(7) Number of sharesissued(8) Fiscal year end(9) Major shareholders
and shareholding ratios

SHIKOKU CHEMICALS CORPORATION (renamed from SHIKOKUCHEMICALS CORPORATION CHEMICALS OPERATIONS SPLITPREPARATION CORPORATION on January 1, 2023)
8-537-1 Dokichōhigashi, Marugame City, Kagawa Prefecture
Makoto Hamazaki, President
Manufacturing, processing, sale, etc. of industrial chemicals, pharmaceuticals,quasi-drugs, fertilizers and pesticides
300 million yen
January 11, 2022
1,000 shares
December 31
The Company: 100%

(Housing Materials operations)(1) Trade name(2) Address(3) Name and title ofrepresentative(4) Nature of business(5) Amount of capital(6) Founded(7) Number of sharesissued(8) Fiscal year end(9) Major shareholders
and shareholding ratios

SHIKOKU KASEI KENZAI CORPORATION (renamed from SHIKOKUCHEMICALS CORPORATION HOUSING MATERIAL OPERATIONS SPLITPREPARATION CORPORATION on January 1, 2023)
8-537-1 Dokichōhigashi, Marugame City, Kagawa Prefecture
Yoshinori Manabe, President
Manufacturing, processing and sale of various construction and civil engineering
materials and products for houses and retail stores as well as designing,
construction, etc. of related facilities
300 million yen
January 11, 2022
1,000 shares
December 31
The Company: 100%

(Shared Service)(1) Trade name(2) Address(3) Name and title ofrepresentative(4) Nature of business(5) Amount of capital(6) Founded(7) Number of sharesissued(8) Fiscal year end(9) Major shareholders
and shareholding ratios

SHIKOKU KASEI CORPORATE SERVICE CO., LTD. (renamed fromSHIKOKU CHEMICALS CORPORATION SHARED SERVICES SPLITPREPARATION CORPORATION on January 1, 2023)
8-537-1 Dokichōhigashi, Marugame City, Kagawa Prefecture
Yoshiaki Ando, President
Support services related to accounting, finance, personnel, legal affairs, tax, labor,
compliance, internal control and asset management
100 million yen
January 11, 2022
1,000 shares
December 31
The Company: 100%17

(4) Businesses of the Split Divisions
1) Chemicals operations2) Housing Materials operations
3) Provision of shared services related to accounting, general affairs, personnel, IT, etc., and operations
incidental or related to these services(5) Operating Results of the Split Divisions (Fiscal Year Ended December 31, 2022)
1) Chemicals operations
Splitting company (nonSplit operations (a)consolidated basis) (b)Net sales
25,547 million yen
38,827 million yen

Proportion (a/b)66%2) Housing Materials operations
Splitting company (nonconsolidated basis) (b)13,219 million yen
38,827 million yen

Split operations (a)Net sales

Proportion (a/b)34%3) Shared services operations
As these are intra-Group shared services-related operations, there are no matters to display with regard
to operating results.
(6) Overview of the Accounting Treatment to Be Carried Out
The Company plans to process the company split as a common control transaction pursuant to the“Accounting Standard for Business Combinations” (ASBJ Statement No. 21, January 16, 2019) and the“Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures (ASBJ Guidance No. 10, January 16, 2019).

18