Consolidated Financial Results
for the Three Months Ended March 31, 2023
[Japanese GAAP]
April 28, 2023
Company name: SHIKOKU KASEI HOLDINGS CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Code number: 4099
URL: https://www.shikoku.co.jp/eng/
Representative: Mitsunori Watanabe, President
Contact: Yoshiaki Ando, Director in charge of Corporate Management
Phone: +81-877-22-4111
Scheduled date of filing quarterly securities report: May 15, 2023
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 Three Months Ended March 31, 2023 (from January 1, 2023 to March
31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
March 31, 2023
14,685
–
2,408
–
2,610
–
1,744
–
June 30, 2022
15,796
22.7
1,775
0.3
2,561
29.6
1,578
16.8
(Note) Comprehensive income: Three months ended March 31, 2023: ¥2,313 million [– %]Three months ended June 30, 2022: ¥1,219 million [21.9%]
Basic earnings
per share
Three months ended
March 31, 2023
June 30, 2022

Diluted earnings
per share

Yen

Yen

33.06
29.33

–
–

The Company has changed the account closing date from March 31 to December 31 beginning with the fiscal year
ended December 31, 2022. Accordingly, the previous first quarter period (from April 1, 2022 to June 30, 2022), which isa period for comparison, does not match the period of the first quarter under review (from January 1, 2023 to March 31,2023). Therefore, the percentage changes from the previous corresponding period are not presented.

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

83,432As of March 31, 2023
124,792
81,806
As of December 31, 2022
117,176(Reference) Equity: As of March 31, 2023: ¥82,941 million
As of December 31, 2022: ¥81,323 million

66.5
69.4

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-endquarter-end
Yen

Fiscal year ended December 31,
–
13.00
–
2022
Fiscal year ending December 31,–
2023
Fiscal year ending December 31,
13.00–
2023 (Forecast)(Note) Revisions to the cash dividends forecasts most recently announced: None

Total

Yen

Yen

13.00

26.00

13.00

26.00

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.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillion yen% Million yen% Million yen% Million yen%

Yen

Full year
64,000
–
6,500
–
7,000
–
4,900
–
92.86
(Notes) 1. Revisions to the financial results forecast most recently announced: None
2. The Company has changed the account closing date from March 31 to December 31 beginning with thefiscal year ended December 31, 2022. The fiscal year ended December 31, 2022 is therefore a transitional
period comprising the nine months from April 1, 2022 to December 31, 2022 for the Company and all of its
consolidated subsidiaries. Therefore, the percentage changes from the previous 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) 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):
March 31, 2023: 52,973,563 shares
December 31, 2022: 52,973,563 shares2) Total number of treasury shares at the end of the period:
March 31, 2023: 203,935 shares
December 31, 2022: 206,031 shares
3) Average number of shares during the period:
Three months ended March 31, 2023: 52,769,141 shares
Three months ended June 30, 2022: 53,812,706 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 financial 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 their 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 the 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 Company has changed the last day of the fiscal year from March 31 to December 31, beginning with theprevious fiscal year. All consolidated subsidiaries of the Company have also changed their fiscal year-end datefrom March to December. Therefore, for the comparison with the previous period, the three-month period fromJanuary 2022 to March 2022 is compared with the reference figure calculated for the “same period of the previous
year.”In addition, as described in “(3) Notes the Quarterly Consolidated Financial Statements (Segment information,etc.), the Company has changed the measurement method of segment profit starting from the three months ended
March 31, 2023. The following comparison with the same period of the previous years is calculated by restating
the figures for the same period of the previous year after the change.
The Japanese economy during the three months ended March 31, 2023 continued to pick up moderately,
particularly in consumer spending, as COVID-19 has been contained and economic activities have normalized.
In overseas economies, although the current employment situation and consumer spending in the U.S. remained
strong, the economy was expected to enter a recession because of high inflation and prolonged monetary
tightening. The economic slowdown in China was becoming clear due to the disruption following the removal of
the zero-COVID-19 policy. The business environment surrounding the Company was increasingly morechallenging.
Under these circumstances, for the three months ended March 31, 2023 (from January 1, 2023 to March 31,2023), the Group posted net sales of ¥14,685 million (down 1.5% year-on-year), operating profit of ¥2,408
million (up 7.5% year-on-year), ordinary profit of ¥2,610 million (up 1.6% year-on-year) and profit attributableto owners of parent of ¥1,744 million (down 16.3% year-on-year). Operating profit increased due to improved
profitability in the Chemicals and Housing Materials operations despite severe market conditions. Significant
foreign exchange gains and gain on sale of investment securities were reported in the same period of the previous
year, while profit attributable to owners of parent decreased due to the absence of those in the first quarter underreview.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, remained sluggish due to a slowdown in supply anddemand caused by weak production resulting from a decline in demand in the Chinese automobile market. As forsales of carbon disulfide for rayon and cellophane, domestic sales increased, and exports also remained solid dueto the development of new customers. As for sales of sodium sulfate for bath agents and detergents, the Company
strove to improve profitability by the price pass-through of the impact of hiking purchase price due to yen
depreciation in exchange rates in domestic sales.
(Organic chemicals)
Regarding chlorinated isocyanurates for disinfectants, the domestic market remained at the same level as theprevious year. In the U.S. market, the market was beginning to show signs of saturation as customer inventorybuildups caused by supply chain disruptions had taken a round, and a reactionary decline was seen compared tothe previous year.
(Fine chemicals)
Regarding electronic chemicals, particularly Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability
Preservative) for printed wiring boards, sales continued to be sluggish due to worsening market conditions in thesemiconductor and electronics markets. For advanced & specialty chemicals, the sale of semiconductor processmaterials remained solid due to evaluation demands and project wins.
As a result, net sales for the chemicals operations segment were ¥9,084 million (down 4.3% year-on-year).
However, segment profit was ¥1,543 million (up 3.6% year-on-year), exceeding the previous year because of2

improved profitability due to the impact of yen depreciation in exchange rates and lower export logistics costs.
2) Housing Materials operations
The number of new housing starts remained weak for owned houses, and demand for interior, exterior finishes,and paving materials and exterior products remained sluggish. Meanwhile, net sales and operating profit
exceeded those of the previous year resulting from the price revision implemented in January 2023 of the current
fiscal year and efforts to pass on high raw material costs.
As a result, net sales for the housing materials operations segment were ¥5,351 million (up 3.1% year-onyear), and segment profit was ¥778 million (up 11.0% year-on-year), surpassing the previous year’s results.

3

Reference information[Overseas net sales]
Three months ended March 31, 2022
(from January 1, 2022 to March 31, 2022)

Three months ended March 31, 2023
(from January 1, 2023 to March 31, 2023)

Net sales(Million yen)

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

Overseas net sales toconsolidated net sales (%)

Asia

2,023

13.6

1,342

9.1

North America

2,877

19.3

2,564

17.5

Other regions

570

3.8

374

2.5

Total

5,472

36.7

4,281

29.2

Consolidated net
sales

14,908

14,685(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets increased by ¥7,615 million from the end of the previous fiscal year to ¥124,792 million. Major
increases were ¥2,298 million in cash and deposits and ¥1,555 million in construction in progress, and major
decreases were ¥541 million in machinery, equipment and machinery and ¥412 million in accounts receivable trade.
Liabilities increased by ¥5,989 million from the end of the previous fiscal year to ¥41,359 million. Major
increases were ¥1,991 million in current portion of long-term borrowings and ¥1,709 million in deferred tax
liabilities, and a major decrease was ¥1,017 million in long-term borrowings.
Net assets increased by ¥1,626 million from the end of the previous fiscal year to ¥83,432 million. A major
increase was ¥1,056 million in retained earnings.
As a result, equity ratio fell to 66.5% from 69.4% 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 initial plan (announced on January 27, 2023).
Assumptions for the exchange rates of major currencies are ¥125 to U.S. dollar and ¥135 to Euro.

4

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 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 March 31, 2023

23,283879
3,166
13,362
16,400
8,770
37
4,140
602
(0)
70,64225,582
1,002
3,194
12,94916,900
9,077
56
4,310
1,104
－
74,177

5,780
7,969
8,509
687
685
23,632
501

6,192
7,427
8,510
2,243
709
25,082518

21,008
412
411
572
(3)
22,40046,533
117,176

21,795
1,878
412
929
(3)
25,01350,614
124,792

(Million yen)
As of December 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 March 31, 2023

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

8,401
528
2,530
5,074
1,465
783
239
25
1,086
3,506
23,641

14,53449
1,004

13,517
1,758
1,004

67

56

656
381
64
328
17,08535,370

635
381
35
329
17,71841,3596,867
5,711
62,808(240)
75,147

6,867
5,711
63,865(237)
76,207

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

4,311
2,288
146
(12)
6,734
491
83,432
124,792

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30 and March 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
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

7

Three months
ended June 30, 2022
15,7969,522
6,274

Three months
ended March 31, 2023
14,685
8,521
6,164

2,187
192
571
38

1,403
206
573
37

4

3

368
1,135
4,498
1,775

383
1,148
3,755
2,408

18
172
589
14
794

59
60
57
33
210

7
1
9
2,561

7
1
8
2,610

11
324
336
2,225
690
1,535
(43)
1,578

0
－
0
2,610
857
1,753
8
1,744

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30 and March 31(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
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

8

Three months
ended June 30, 2022
1,535

Three months
ended March 31, 2023
1,753

(481)
162
3
(316)
1,219

545
10
4
560
2,313

1,264

2,304

(45)

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)
There is no relevant information.
(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)(Calculation of tax expenses)
The Company makes 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 first quarter under review, and multiplies 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.)
I. For the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Reportable segment

Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Inter-segment net sales ortransfers
Total

Other
(Note) 1

Chemicals
operations

Housing
Materials
operations

3,610
5,476
2,239

–
–
–

3,610
5,476
2,239

–
–
–

3,610
5,476
2,239

–
–
–

3,610
5,476
2,239

–

339

339

–

339

–

339

–
–

3,834
–

3,834
–

–
288

3,834
288

–
–

3,834
288

11,327

4,174

15,501288

15,790–15,790

—

—

—

6

6

—

6

11,327

4,174

15,501294

15,796–

15,796

0

0

0

67

67

(67)

–

11,327

4,174

15,502362

15,864(67)

15,796

Total

Total

Segment profit
1,604
145
1,749
26
1,775
(0)
1,775
(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 ¥(0) million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

10II. For the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Reportable segment

Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Inter-segment net sales ortransfers
Total

Other
(Note) 1

Chemicals
operations

Housing
Materials
operations

3,310
3,659
2,114

–
–
–

3,310
3,659
2,114

–
–
–

3,310
3,659
2,114

–
–
–

3,310
3,659
2,114

–

323

323

–

323

–

323

–
–

5,028
–

5,028
–

–
242

5,028
242

–
–

5,028
242

9,084

5,351

14,436242

14,678–

14,678

—

—

—

6

6

—

6

9,084

5,351

14,436249

14,685–

14,685

2

0

3

72

75

(75)

–

9,087

5,352

14,439321

14,761(75)

14,685

Total

Total

Segment profit
1,543
778
2,322
38
2,361
47
2,408
(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 ¥47 million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

2. Matters related to changes in reportable segments(Changes in measurement methods)
Beginning with the three months ended March 31, 2023, due to the change in management structure resulting
from the shift to a pure holding company, corporate expenses previously not allocated to each segment are now
allocated to each segment based on reasonable standards. Segment information for the previous year’s firstquarter is disclosed based on the measurement method after the change.

11