SHIKOKU CHEMICALS CORPORATION

Stock Code：4099
July 26, 2017

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2017
[under Japanese GAAP](Amounts less than one million yen are rounded down)

1．Consolidated financial results for the three months ended June 30, 2017(from April 1, 2017 to June 30, 2017)(1) Consolidated operating results（Millions of yen, except per share amounts; Percentages indicate year-on-year changes ）Three months ended
Three months ended
June 30, 2017
June 30, 2016%%
Net sales
12,3770.3
12,339(1.5)
Operating income
1,907
14.0
1,672
0.5
Ordinary income
2,144
13.2
1,894(4.2)
Net income attributable to owners of the1,423
14.7
1,240(0.8)
ParentBasic earnings per share (Yen)
24.36
21.23
Diluted earnings per share (Yen)
Note: Comprehensive income
2,151 million yen[ - ]40 million yen [（98.3%）](2) Consolidated financial position

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

June 30, 2017

(Millions of yen)March 31, 201784,23963,098
74.1%
62,397 million yen

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

2．Dividends
Year ending
March 31, 2018
(Forecast)Year ending
March 31, 2018Year ended
March 31, 2017

Annual cash dividends per share (Yen)
1st quarter end
2nd quarter end
10.00
3rd quarter end
Fiscal year end
10.00
Total
20.00
Note: Revisions to the cash dividends forecasts most recently announced: None

8.50
10.00
18.50

3．Forecast of consolidated operating results for the year ending March 31, 2018(from April 1, 2017 to March 31, 2018)（Millions of yen, except per share amounts; Percentages indicate year-on-year changes ）Six months ending
Year ending
September 30, 2017
March 31, 2018%%
Net sales
23,800(1.3)
49,5000.1
Operating income
3,100(8.7)
7,000 (10.9)
Ordinary income
3,400(5.2)
7,400 (10.8)
Net income attributable to owners of the Parent
2,300(4.6)
5,300(9.2)
Basic earnings per share (Yen)
39.36
90.71
Note: Revisions to the consolidated operating results forecasts most recently announced: NoneSHIKOKU CHEMICALS CORPORATION

Stock Code：4099
July 26, 2017
4．OthersNumber of issued shares outstanding at the end of the periods (ordinary shares)
Number of issued shares including treasury shares
Number of treasury shares

June 30, 2017
58,948,063 shares
524,351 shares

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

Average number of shares outstanding during the period

Three months ended
June 30, 2017
58,424,476 shares

Three months ended
June 30, 2016
58,431,249 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
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
OtherAllowance for doubtful accounts
Total current assetsNon-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
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for directors' bonuses
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

1

March 31, 2017

(Millions of yen)
June 30, 2017

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

23,577
12,908
1,449
5,107
53
2,306
694
189
ᇞ0
46,286

5,749
4,997
8,794
74
657
20,273
323

5,685
4,666
8,843
237
597
20,030290

15,72897763
ᇞ3
16,58637,18383,432

16,76397773
ᇞ317,631
37,952
84,239

7,118
371
1,930
134
946
78
4,535
15,114

6,205
444
1,949
160
680
18
4,402
13,860

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

1,664
1,024
1,344
97
2,198
378
572
7,280
21,140Consolidated Financial Statements
Consolidated Balance Sheets
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equityAccumulated 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

2

March 31, 2017

(Millions of yen)
June 30, 2017

6,867
5,741
42,302
ᇞ315
54,596

6,867
5,741
43,141
ᇞ317
55,434

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

4,890
ᇞ72,301
ᇞ86
ᇞ135
6,963
701
63,09884,239

Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, 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
Foreign exchange gains
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange lossesMiscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

3

Three months ended
June 30, 2016

(Millions of yen)Three months ended
June 30, 201712,3397,478
4,861

12,377
7,302
5,075

1,032
225
545
2048
4287
1,024
3,188
1,672

997
212
552
13
47
4288
1,051
3,168
1,907

3404－
9418

0261
75275

631157
1196
1,894

531－
0
37
2,144

1414

9
955
1,903
657
1,246
6
1,240

0
0
2,153
729
1,424
0
1,423

Consolidated Statements of Comprehensive Income

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

4

Three months ended
June 30, 2016

(Millions of yen)Three months ended
June 30, 2017

1,246

1,424

ᇞ1,1585
ᇞ62
9
ᇞ1,20540728
ᇞ9
ᇞ19726
2,151

44
ᇞ3

2,1482