Consolidated Financial Results
for the Three Months Ended June 30, 2022
[Japanese GAAP]
July 26, 2022
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: Yoshiaki Ando, Executive Officer, General Manager of Corporate Strategy & FinancePhone: +81-877-22-4111
Scheduled date of filing quarterly securities report: August 10, 2022
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 June 30, 2022 (from April 1, 2022 to June 30,
2022)(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%
June 30, 2022
15,796
22.7
1,775
0.3
2,561
29.6
1,578
16.8
June 30, 2021
12,869
11.0
1,770
40.3
1,975
37.1
1,351
42.8
(Note) Comprehensive income: Three months ended June 30, 2022: ¥1,219 million [21.9 %]Three months ended June 30, 2021: ¥1,000 million [(46.5) %]Three months ended
June 30, 2022
June 30, 2021

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

–
–

29.33
24.40

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

113,820
As of June 30, 2022
81,477
113,805
As of March 31, 2022
80,908(Reference) Equity: As of June 30, 2022: ¥80,665 million
As of March 31, 2022: ¥80,049 million

70.9
70.3

2. Dividends
1stquarter-end
Yen

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

Year-end

Total

Yen

Yen

Yen

Year ended March 31, 2022
–
12.00
–
Year ending December 31, 2022–
Year ending December 31, 2022
13.00–
(Forecast)(Note) Revisions to the cash dividends forecasts most recently announced: None

12.00

24.00

13.00

26.00

3. Forecast of Consolidated Financial Results for the Year Ending December 31, 2022 (from April 1, 2022 to
December 31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentFull year

Million yen

46,000% Million yen% Million yen% Million yen

%

Yen

–

–

–

–

68.76

5,800

6,100

3,700

(Notes) 1. Revisions to the financial results forecast most recently announced: None
2. The Company plans to change its fiscal year-end (the last day of the fiscal year) from March 31 to December
31 of each year beginning with the 103rd fiscal year. Due to this change in fiscal year-end, the 103rd fiscal
year will be a transitional period of nine months from April 1, 2022 to December 31, 2022. Therefore, theabove forecast of consolidated financial results for the year ending December 31, 2022 represents nine-monthforecast figures, and the percentage changes from the previous corresponding period are omitted.

* 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):
June 30, 2022: 54,018,563 shares
March 31, 2022: 54,018,563 shares2) Total number of treasury shares at the end of the period:
June 30, 2022: 205,938 shares
March 31, 2022: 205,788 shares
3) Average number of shares during the period:
Three months ended June 30, 2022: 53,812,706 shares
Three months ended June 30, 2021: 55,403,410 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 basedon 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 the operating
results forecasts and cautionary notes concerning their use, please refer to “(3) Explanation of Consolidated Financial
Results Forecast and Other Forward-looking Information” under “1. Qualitative Information on Quarterly Financial
Results for the Period under Review” on page 3 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 .......................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ...... 3
2. Quarterly Consolidated Financial Statements and Primary Notes ............................................................... 4(1) Quarterly Consolidated Balance Sheets ................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ........................................... 6(3) Notes to Quarterly Consolidated Financial Statements ............................................................................ 8(Notes on going concern assumption) ...................................................................................................... 8(Notes in the case of significant changes in shareholders’ equity) ........................................................... 8(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) ............. 8(Segment information, etc.) ...................................................................................................................... 9

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Japanese economy during the three months ended June 30, 2022 continued to recover with personal
consumption showing signs of recovery as restrictions on economic activities were eased and such activities
were normalized. Overseas economies continued to pick up globally, especially in Europe and the UnitedStates. However, the effects of prolonged constraints on supply of semiconductors and other materials,
chronically high energy and resource prices due to the prolonged Russian invasion of Ukraine, disruptions in
global distribution networks and soaring sea freight rates are becoming more serious globally, and monetary
tightening and rising interest rates in multiple countries against the backdrop of these global price increases
posed downside risks to the economy.
Under these circumstances, for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022),
the Group posted net sales of ¥15,796 million (up 22.7% year-on-year), operating profit of ¥1,775 million (up0.3% year-on-year), ordinary profit of ¥2,561 million (up 29.6% year-on-year) and profit attributable to ownersof parent of ¥1,578 million (up 16.8% year-on-year), all of which increased from the previous year’s results. In
addition, net sales, ordinary profit, and profit attributable to owners of parent all hit record highs and achieved
high levels, driven by overseas demand, against the backdrop of global economic recovery from the COVID19 pandemic.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, largely surpassed those of the previous fiscal year due tosolid demand for replacement tires and industrial vehicle tires, despite a decline in automobile production
resulting from semiconductor shortages. As for sales of carbon disulfide for rayon and cellophane, and sodium
sulfate for bath agents and detergents, the Company strove to improve profitability by the price pass-through of
the impact of yen depreciation in exchange rates and resource prices.
(Organic chemicals)
Regarding chlorinated isocyanuric acid for disinfectants, the domestic market performed better than theprevious 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 the Tokushima Plant continues to be in full production. In addition, both sales
and profits were significantly higher than the previous year as the Company passed soaring resource prices anddistribution costs on selling prices amid the tightening balance between supply and demand.
(Fine chemicals)
Regarding electronic chemicals, particularly Glicoat-SMD, a heat-resistant soluble OSP (Organic
Solderability Preservative) for printed wiring boards, and advanced & specialty chemicals, such as epoxy resin
curing agent (imidazoles), resin modifier (glycoluril derivatives, etc.) and semiconductor processing materials,
sales also remained strong, despite the current lockdown in China and Shanghai, against a backdrop of thefavorable conditions in semiconductor and electronics markets that have recovered from the COVID-19
pandemic.
As a result, net sales for the chemicals operations segment were ¥11,327 million (up 35.0% year-on-year),and segment profit was ¥1,937 million (up 10.5% year-on-year), both surpassing the previous year’s results.
2) Housing Materials operations
The number of new housing starts continued to be weak for owned houses, and sales of interior, exterior
finishes and paving materials and exterior products remained sluggish. In response to soaring prices of aluminum
ingots and other raw materials, the Company revised prices and strove to improve profitability, but the businessenvironment remained severe as higher end-of-line prices acted to further reduce demand.
As a result, net sales for the housing materials operations segment were ¥4,174 million (up 2.4% year-onyear), and segment profit was ¥296 million (down 37.6% year-on-year).

2

Reference information[Overseas net sales]
Three months ended June 30, 2021
(from April 1, 2021 to June 30, 2021)

Three months ended June 30, 2022
(from April 1, 2022 to June 30, 2022)

Net sales(Million yen)

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

Overseas net sales toconsolidated net sales (%)

Asia

1,844

14.3

2,293

14.5

North America

2,047

15.9

4,199

26.6

Other regions

476

3.7

679

4.3

Total

4,367

33.9

7,171

45.4

Consolidated net
sales

12,86915,796(Note) Net sales are classified based on the actual destinations of products.

(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets increased by ¥14 million from the end of the previous fiscal year to ¥113,820 million. Major
increases were ¥2,319 million in machinery, equipment and vehicles, and ¥576 million in buildings and structures,and major decreases were ¥1,726 million in construction in progress and ¥1,016 million in investment securities.
Liabilities decreased by ¥553 million from the end of the previous fiscal year to ¥32,343 million. A major
increase was ¥1,254 million in electronically recorded obligations - facilities, and major decreases were ¥1,202
million in income taxes payable and ¥797 million in notes and accounts payable - trade.
Net assets increased by ¥568 million from the end of the previous fiscal year to ¥81,477 million. A major
increase was ¥931 million in retained earnings, and a major decrease was ¥479 million in valuation difference
on available-for-sale securities.
As a result, the equity ratio rose to 70.9%, from 70.3% 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 April 28, 2022).
Assumptions for the exchange rates of major currencies are ¥120 to U.S. dollar and ¥130 to Euro.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(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

4

As of June 30, 2022

23,155
1,271
2,622
13,044
15,600
7,373
41
3,689
870
(1)
67,66822,552995
2,889
13,321
15,600
7,218
55
3,870
1,014
(0)
67,516

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

5,815
6,455
8,524
2,049
633
23,479411

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

21,314
335
366
401
(3)
22,41346,304
113,820

(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

5

As of June 30, 2022

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

7,196
566
2,530
2,100
1,290
646
118
26
1,304
3,014
18,792

11,017295
1,008

11,068
39
1,008

90

59

625
380
50
318
13,78832,897

608
380
56
329
13,55032,3436,867
5,740
60,475(250)
72,8336,867
5,740
61,406(250)
73,764

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

4,373
2,298
194
34
6,901
811
81,477
113,820

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30(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 income
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

Three months
ended June 30, 2021
12,8697,717
5,151

Three months
ended June 30, 2022
15,796
9,522
6,274

1,353
121
578
41

2,187
192
571
38

4

4

261
1,020
3,380
1,770

368
1,135
4,498
1,775

15
164
19
16
214

18
172
589
14
794

7
1
9
1,975

7
1
9
2,561

28
28

–
–

1
–
1
2,002
654
1,347
(4)
1,351

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

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30(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

7

Three months
ended June 30, 2021
1,347

Three months
ended June 30, 2022
1,535

(359)
10
(0)
3
(347)
1,000

(481)
–
162
3
(316)
1,219

1,000

1,264

0

(45)

(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 multiply profit
before income taxes for the quarter by the estimated effective tax rate.
Income taxes – deferred is included in income taxes.

8

(Segment information, etc.)
I. For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)
Reportable segment
Chemicals
operations

Housing
Materials
operations

Total

Other
(Note) 1

Total

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statements ofincome (Note) 3

Net sales
Inorganic chemicals
2,928
–
2,928
–
2,928
–
2,928
Organic chemicals
3,220
–
3,220
–
3,220
–
3,220
Fine chemicals
2,243
–
2,243
–
2,243
–
2,243
Interior, exterior finishes
–
348
348
–
348
–
348
and paving materials
Exterior products
–
3,729
3,729
–
3,729
–
3,729
Other
–
–
–
399
399
–
399
Revenue from contracts
8,391
4,077 12,469
399
12,869–12,869with customers
Net sales to outside
8,391
4,077 12,469
399
12,869–12,869customers
Inter-segment net sales
0
0
0
79
80
(80)
–
or transfers
Total
8,391
4,078 12,470
479
12,949(80)
12,869Segment profit
1,753
474
2,228
41
2,269
(499)
1,770
(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 ¥(499) million includes inter-segment eliminations of ¥0 million
and corporate expenses in the amount of ¥(499) 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 statements of income.

9II. For the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)
Reportable segment
Chemicals
operations

Housing
Materials
operations

Total

Other
(Note) 1

Total

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statements ofincome (Note) 3

Net sales
Inorganic chemicals
3,610
–
3,610
–
3,610
–
3,610
Organic chemicals
5,476
–
5,476
–
5,476
–
5,476
Fine chemicals
2,239
–
2,239
–
2,239
–
2,239
Interior, exterior finishes
–
339
339
–
339
–
339
and paving materials
Exterior products
–
3,834
3,834
–
3,834
–
3,834
Other
–
–
–
294
294
–
294
Revenue from contracts
11,327
4,174 15,501
294
15,796–
15,796
with customers
Net sales to outside
11,327
4,174 15,501
294
15,796–
15,796customers
Inter-segment net sales
0
0
0
67
67
(67)
–
or transfers
Total
11,327
4,174 15,502
362
15,864(67)
15,796
Segment profit
1,937
296
2,233
27
2,261
(485)
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 ¥(485) million includes inter-segment eliminations of ¥(0) million
and corporate expenses in the amount of ¥(485) 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 statements of income.

10