Financial Results Presentation
for the FY2021

May 21, 2021

Code number：4099

Contents

I.

Corporate Profile (Business Structure)

P3

II. Financial Results for the FY2021

P6

III. Forecast of Financial Results for the FY2022

P16

IV. Long-term Vision Challenge 1000

“STAGE 1” Progress Status
V. References

P20
P31

2

Ⅰ．Corporate Profile(Business Structure)Ⅰ－１．Corporate Profile（As of March 31, 2021）

 Company nameSHIKOKU CHEMICALS CORPORATION Code number

4099

 Stock exchangeTokyo

Industry：Chemicals

listing Incorporated

October 10, 1947

 Head Office

Marugame, Kagawa Prefecture President and C.E.O.

Naoto Tanaka

 Capital

6,867 million yen Number of employees

1,194（Consolidated）

 Net sales

49,590 million yen （Consolidated）

4

Ⅰ－２．Business Structure Two main business pillars, which arechemical products and housing materials.
Inorganic
Chemicals

Chemicals
operations

Organic
Chemicals
Fine
Chemicals

SHIKOKU
CHEMICALSCORPORATION
Housing
Materials
operations

Interior, exterior
finishes andpaving materials

Exterior
products
5

Ⅱ．Financial Results
for the FY2021

Ⅱ－１. Overview

1

Due to the influence of the novel coronavirus, sales decreased by
3.8% compared to the previous term, and net profit increased by
2.7% compared to the previous term.

Although the Chemicals operations showed recovery in the
2 second half of the year, sales decreased by 1.0% compared tothe previous term. Segment profit increased by 0.1% compared tothe previous term.

Due to a strong sense of uncertainty about the future of internal andexternal economy, investment tended to be often postponed. Thus,
3 regarding the Housing Materials operations, sales decreased by 9.0%
and segment profit decreased by 11.6% compared to the previous term.

7

Ⅱ－２．Consolidated Financial Results■ Highlights of Financial Results for the FY2021(Millions of yen)

FY2020
AmountFY2021

Percentage

AmountIncrease ofamountPercentage

Changes

51,564100.0%

49,590100.0%▲ 1,974▲3.8%

Operating Income

7,848

15.2%

7,401

14.9%

▲ 447

▲5.7%

Ordinary income

8,022

15.6%

7,997

16.1%

▲ 25

▲0.3%

Net income attributableto owners of the parent

5,610

10.9%

5,760

11.6%

150

2.7%

Exchange rate (USD)

109

106

Exchange rate (EUR)

122

122

Net sales8Ⅱ－３. Sales and Profit by Business segments(consolidated)（Millions of yen）

Net Sales

FY2020Inorganic Chemicals

percentage

FY2021percentage

Changes

11,91323.1%

10,43521.0%▲ 12.4%

Chemicals Organic Chemicals
operations Fine Chemicals

10,146

19.7%

10,709

21.6%

5.5%

8,090

15.7%

8,705

17.6%

7.6%

Subtotal

30,15058.5%

29,85060.2%▲ 1.0%

1,665

3.2%

1,475

3.0%

▲ 11.4%

18,95436.8%

17,28534.9%▲ 8.8%

20,61940.0%

18,76037.8%▲ 9.0%

Other

794

1.5%

979

2.0%

23.2%

Total

51,564100.0%

49,590100.0%▲ 3.8%

Interior, exterior finishes

Housing and paving materials
Materials Exterior Products
operations Subtotal

Segment Profit

FY2020percentage

FY2021percentage

Changes

Total of Chemicals operations

5,656

72.1%

5,664

76.5%

0.1%

Total of Housing Materials operations

3,966

50.5%

3,505

47.4%

▲11.6%

Other▲ 1,774▲22.6%▲ 1,768▲23.9%

▲0.3%

Total

7,848

100.0%

7,401

100.0%▲5.7%

9

Ⅱ－４. Overview of Sales by Segment (Chemical Products)(Millions 15,000of yen)FY202011,913
10,435

10,146

10,709FY2021

10,000
8,090

8,705

5,000

0
Inorganic Chemicals

Organic Chemicals

Fine Chemicals

 Sales of insoluble sulfur, a material for radial tires, remained sluggish both in Japan and abroad during
the first half of the year, affected by the global production adjustments for automobiles and tires amid the
spread of COVID-19. However, sales recovered sharply in the second half of the year as production
activities normalized.
 Regarding Organic Chemicals, sales of swimming pool agents showed a slump in Japan such as due tosuspension of swimming classes at schools due to the COVID-19 pandemic. However, they did wellbecause of the increase in the demands for chemicals for facilities using water and in the US market.
 Regarding Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability Preservative) for printed
wiring boards, sales largely exceeded the previous year’s result during the second half of the year on theback of recovery in the electronics market mainly in China and Taiwan. Sales of advanced & specialty
chemicals such as epoxy resin curing agent (imidazoles) grew in newly developed products althoughsales were affected by the deteriorationin market conditions in products for automobile-related use.

10Ⅱ－５. Overview of Sales by Segment(Housing Material Products)(Millions of yen)
20,00018,954

17,28515,00010,000

FY2020
FY2021

5,000
1,665

1,475

0
Interior, exterior finishes

Exterior Products

and paving materials◆ With the spread of COVID-19, there has been a strong sense of uncertainty over the prospects ofdomestic and foreign economies, causing a wait-and-see attitude to continue as seen in a growing
trend of investments being deferred. Given the weakness in housing starts and capital investment,
sales of interior, exterior finishes and paving materials and exterior products remained sluggish.

11

Inorganic Chemicals
Organic Chemicals
Operating profit incurrent term

Other

Decrease in costof logistics

Increase in costof salesIncrease in sales
volumeIncrease in sales
price

Other

Increase in costof logistics

Decrease in costof salesIncrease in sales
volumeDecline in sales
price

Other

Increase in costof logistics

Increase in costof salesDecrease in sales
volumeDecline in sales
price

Operating profit inprevious term

Ⅱ－６. Analysis of Increase/Decrease in Chemical Segment Profit（Millions of yen）

Fine Chemicals

12Interior, Exterior Finishes
and Paving Materials
Operating profit incurrent term

Other

Increase in costof logistics

Increase in costof salesDecrease in sales
volumeincrease in sales
price

Other

Increase in costof logistics

Increase in costof salesDecrease in sales
volumeincrease in sales
price

Operating profit inprevious term

Ⅱ－７. Analysis of Increase/Decreasein Housing Material Segment Profit（Millions of yen）

Exterior Products13Ⅱ－８. Consolidated Balance Sheets*The value in () indicates the ratio compared to March 2020
(Millions of yen)

Liabilities

Current assets

30,778（+1,529）65,024（+1,920）

・Increase in Long-termborrowings (+3,800）

・Increase in securities（+2,999）

Total assets

Net assets

107,344（+6,448）

76,566（+4,918）

・ Increase in Treasury

Non-current
assetsshares （+1,947）
・ Increase in Valuation

42,319（+4,527）

difference on availablefor-sale securities

・ Increase in Construction(+1,816）

in progress （+3,035）

・ Increase in Retained

ROE

7.9%

Capital-to-asset ratio (％)

70.5%

earnings（＋1,067）14

Ⅱ－９. Consolidated Statements of Cash Flows Cash flows fromoperating activities（百万円）(Millions of yen)
8,000
7,385

 Cash flows frominvesting activities

 Cash flows fromfinancing activities

（百万円）

7,411

0

4,000

3,875

2020/3-1,000

6,000

4,000

3,000

-2,000-3,000-2,999-4,0002,000-5,000-6,0000

CF obtained through sales
activities increased by 25
million yen compared to theprevious term.

2021/3

2,000

1,000
89

-6,018-7,0000

CF used through investment
activities decreased by 3,019
million yen compared to theprevious term.

CF obtained through financial
activities decreased by 3,786
million yen compared to theprevious term.

• Income from the sale ofinvestment securities(+ 1,607 million yen comparedto the previous term)• Income from long-termborrowings (▲3.300 million
yen compared to the previous
term)

15

Ⅲ．Forecast of Financial
Results for the FY2022

Ⅲ－１. The full-year financial results forecast (Consolidated)（billions of yen）
FY2021

FY2022

Increase ofamount（Forecast）

Changes

Net sales

49.5

51.5

2.0

3.9%

Operating Income

7.4

8.0

0.6

8.1%

Ordinary income

7.9

8.3

0.4

3.8%

Net income
attributable toowners of the parent

5.7

6.0

0.3

4.2%

*Exchange rate assumed: 105 yen/US dollar, 128 yen/Euro17

Ⅲ－2. Business Forecast by Segment (Consolidated)(Billions of yen)

Net sales

FY2021

FY2022

Increase ofamountChanges

Chemicals operations

29.8

30.4

0.6

2.1%

Housing Materials
operations

18.7

20.0

1.3

6.8%

Increase ofamountChanges

Segment Profit

FY2021

FY2022

Chemicals operations

5.6

6.2

0.6

9.7%

Housing Materials
operations

3.5

3.7

0.2

7.1%

*Exchange rate assumed: 105 yen/US dollar, 128 yen/Euro18

Ⅲ－3. Capital investment, Depreciation, R&D expense（Consolidated）(Millions of yen) 6,000

5,000
Capital investment

4,000

Depreciation

3,000

R&D expenses

2,000
1,000
0
FY2017FY2018FY2019FY2020

FY2021FY2017 FY2018 FY2019 FY2020 FY2021

FY2022
Forecast

FY2022 (Millions of yen)
Forecast

Capitalinvestment

3,815

1,628

2,073

1,961

4,106

5,873

Depreciation

1,645

2,318

2,281

2,189

1,835

2,319

R&D
expenses

1,235

1,310

1,295

1,338

1,207

1,594

19

Ⅳ．Long-term Vision

Challenge 1000
“STAGE 1”
Progress Status

Ⅳ－１．Outline of Challenge 1000
Yonpou Yoshi

Financialgoals

Pillars for
Strategy

Net Sales
売上高
100 billions of
1,000億円
yen

Business reform
policyCustomerCompanywide
reform policy

Employee

Proactive
investment

Shareholder

Contribution to
SDGs

Society

営業利益
Operating
Income15 billionsof yen
150億円

ROE
10％

(Contributions to
Stakeholders)21Ⅳ－２．Financial goals
120.0

40.0%

（ Billions of yen ）
100.0

100.0

5.0
95.0

80.0
80.0

2.5

40.0

15.2%

20.0%

51.6

15.2%

49.5
14.9%

51.5
15.5%

15.0%

15.0%

10.0%
7.9%

8.0%

Operatingprofit ratio

15.0%

12.5%

20.0

New
30.0%
businesssales
Existing
business
sales

60.0
52.8

（Consolidated）

25.0%

77.5
60.0

Net Sales
35.0%

10.0%
ROE

7.9%
5.0%

0.0

8.0

7.8

7.4

FY20192019/3

FY20202020/3

FY20212021/3

99期

100期

101期

8.0

7.5

12.0

15.0

FY20262026/3

FY20302030/3106期

110期

Operating
Income（Consolidated）
0.0%

FY2023
FY20222022/32023/3（予想）（Forecast）
102期
103期

STAGE 1

STAGE ２STAGE 322

Ⅳ－３．Pillar for Strategy （Companywide reform policy）

semiconductor process materials◆Fine Chemicals Starting the operation of multipurpose plant
The demand for semiconductors has been increasing because of IoT and
autonomous cars.
Needs for high-quality, high-function materials are growing among
manufacturers who manufacture and develop semiconductor processmaterials.
The plant (TAP-4) for cutting-edge semiconductor process materials wascompleted in April 2021. This plant is equipped for high quality such as low
metal control.

TAP-4（Tokushima Plant）

Housing Materials◆ Substantiating the high strength product lineup
Safe and secure life will be realized by enhancing the lineup of high-strength
exterior products that withstand large-scale disasters such as typhoons.

23

Ⅳ－４．Pillar for Strategy （Companywide reform policy）
Creation of values◆Establishment of Shikoku Chemicals quality policy
It was stipulated to "increase the levels of not only products but also all activities."
Shikoku Chemicals quality means the quality of all activities including products, services, and value to beprovided to customers and the entire Shikoku Chemicals Group is making efforts. These activities will
increase the brand (manufacturer) value.
Increasing brand (manufacturer) value
Quality of public relations/external communication

Quality of proposals
Quality of

Quality of

distribution/logistics

follow-up services

Shikoku Chemicals
quality

Quality of products
Quality of actions

Quality of issued

documents
Quality related to safety

Response to social/legal requirements[Image of Shikoku Chemicals quality]

Creation of reserve energy◆Implementation of telework as a reform in way of work
Construction of an environment where employees are encouraged to work and create newvalues with the introduction of telework and sales efficiency improvement tools.

24Ⅳ－５．Pillar for Strategy（Proactive investment）

有機化成品of a new plant for chlorinated Chlorinated Isocyanurates at Kitajima Office, Tokushima Plant
Construction▶ Globally, the impact of transboundary movements of aquaticorganisms in ballast water in concurrence with the traffic of ships on
the ecosystems has turned serious. There are also many areas
where it is difficult to secure clean water, and solution of the social
issues such as improvement in the water sanitation environment isurgently demanded.
▶ It was decided to build a new plant to respond to the increasing
demands for Chlorinated Isocyanurates for purposes such as
improving water environment.
▶ Its construction began in September 2020 with approximately 5 billion yen
in investment, and it is scheduled to be completed in July 2022.

25

Ⅳ－６．Pillar for Strategy(Contribution to SDGs)

Chemicaloperations• Fine Chemicals deals with watersoluble chemicals for printed
wiring boards and can provide ahuman- and earth-friendly work
environment.

• Organic Chemicals contributes to the
supply of safe water to people andconservation of marine environment.
=> Providing a good hygienic
environment for people around theworld through the disinfection,cleaning, and bleaching technologies.

26

Ⅳ－７．Pillar for Strategy(Contribution to SDGs)

Housing Materials
operations• Contributing to planning cities and communities where
people can live securely and safely.
=> Decorative and Home Exterior Products provides
the lineup of high-strength products and ensures highsafety.
=> Interior Materials uses human- and environmentallyfriendly raw materials and provides space where
people lead a healthy life.

Group company• Shikoku Environmental Business Company
provides people with a safe and secure water
environment.
=> Returning clean water to nature throughmaintenance and inspection of appropriate
sewage treatment facilities and septic tanks.
=> Delivering safe drinking water and domestic waterto each household through the construction andcleaning of water facilities.

27

Ⅳ－８． Pillar for Strategy
Yonpou Yoshi (Contributions to Stakeholders)◆ Provide new value by the execution of Pillar for Strategy

Customer

Providing products and value which go one step ahead of what customers want suchas by searching for new businesses and expanding the field of existing businesses,
and by making a proactive investment to support these initiatives.

◆ Introduce special incentive scheme (treasury shares disposal type)

Employee

A total of 123,300 shares of the company were granted to the employees of ourGroup.
It was aimed to reward the efforts of the employees and increase their awareness ofparticipating in the management. Thus, we intended to share medium- and long-term
shareholder value with our shareholders.

◆ Acquisition and retirement of treasury shares

Shareholder

We acquired approximately 1.5 million shares to enhance shareholder return andimprove capital efficiency.

◆ Investment in ‘Social Bond’

Society

We invested in social bonds issued by the Japan Student Services Organization as
ESG investment.

◆ Fund procurement by the loan based on an ESG/SDGs evaluation
Our willingness to contribute to ESG and SDGs was evaluated.

28

Ⅳ－９．Shareholders return–Transitions in Dividend Payouts–（ Millions of yen ）Share Repurchases
Total Dividends
Total Payout Ratio（％）
Payout Ratio（％）

FY2018FY2019FY2020

FY2021

FY2022（forecast）

Dividends per
share (annual)

22.0

22.0

24.0

24.0

24.0

29

Thank you for listening.

V．References

Ⅴ－１. History
Oct 1947

Established in Marugame, Kagawa Prefecture with a capital of 2 million yen as a producer of carbon disulfide (=>inorganic chemical products)

Oct 1957

No. 1 Tokushima Plant (now Tokushima Plant’s Yoshinari location) was constructed and began operations in the
production of sodium sulfate (=> inorganic chemical products)

May 1961

CMC production began at No. 1 Tokushima Plant. We applied CMC to wall material later

Jun 1962

No. 2 Tokushima Plant (now Tokushima Plant's Kitajima location) was constructed

Oct 1962

The Company’s shares were listed on the Second Section of the Tokyo Stock Exchange

May 1964

Japan’s first operations to produce chlorinated isocyanurates (=> organic chemical products) were launched at No. 2
Tokushima Plant

Dec 1969

The Company began production of OSP (Organic Solderability Preservative) (which was later called Glicoat-SMD (=> Fine
Chemicals) for PWBs (Printed Wired Board) and other electronic components

Sep 1970

The Company began production in the field of housing materials, launching production of interior finishes (JULUX) at No.
2 Tokushima Plant

Jun 1972

The Company began production and sales of accordion gates (=> Exterior Products)

Mar 1975

The Company moves its share listings from the Second to First Sections of the Tokyo Stock Exchange and Osaka
Securities Exchange

Jul 1975

Tadotsu Plant was constructed in Tadotsu, Kagawa Prefecture

Nov 1975

Full-scale production of imidazole (=> Fine Chemicals) began at No. 2 Tokushima Plant (test production began in 1968)

Jun 1981

The Company opened a representative office in Los Angeles (which later became an overseas subsidiary as SIC in 1985)

Jul 1984

Production of insoluble sulfurs (=> Inorganic Chemicals) began at Marugame Plant

Sep 1992

The Research Center (now R&D Center) was constructed in Utazu, Kagawa Prefecture

Oct 1995

Ranzan Plant was constructed in Ranzan, Saitama Prefecture

Jul 2006

Shikoku (Shanghai) Co., Ltd. was established in Shanghai

2008

The Company began sales of a roughening agent for PWBs (=> Fine Chemicals), and constructed a new plant for GlicoatSMD at Marugame Plant

Aug 2013

Tokushima Advanced Chemicals Plant-3 (TAP-3) facility was constructed at Tokushima Plant

Sep 2014

Converted Nippon Ryutan Kogyo Co., Ltd., the only carbon disulfide production company in Japan, into a consolidated
subsidiaryApr 2015

Offices were established in Taiwan and Singapore

Oct 2016

Physical Testing Laboratory was constructed at R&D CenterMar 2017

Insoluble sulfur production facilities were enhanced

Apr 2017

Converted Nippon Koki Co., Ltd. into a subsidiary32

Ⅴ－２. History and Sales Trends
Net Sales

1975

Moved to Tokyo Stock
Exchange Section 1
1962
Listed on Tokyo Stock
Exchange Section 2

2008
2004
1991

1947
Establishment

1984

1972
1970
1968
1964
1957
1947

Microetching solution
for PWBs

Advanced Materials

Glicoat-SMD
Insoluble Sulfur
Exterior Products

Wall materials
Imidazoles
Chlorinated Isocyanurates
Sodium Sulfate
Carbon Disulfide

33

Chemicals operations

Chemicals operations①Inorganic Chemicals

Ⅴ－３. Inorganic Chemicals(Millions of yen)

Inorganic
Chemicals[Major products]□ Carbon Disulfide …Essential materials for chemical
fiber rayon□ Insoluble Sulfur…Rubber vulcanization agent□ Sodium Sulfate…Warm bath effect accelerator forbath additives
Synthetic detergent cleaning aid

10,435(21.0％)

FY2021
Consolidated
Net sales
49,59036

Ⅴ－４. Insoluble Sulfur-Product Introduction□
□

□

□

□

□
□

Application: Vulcanizing agent for rubber
Main customers: Domestic and overseas tire manufacturers
The raw material rubber is hard, and it acquires the characteristic to extend and contractby adding sulfur and heating (vulcanizing).
When normal sulfur is used in the production process of radial tires, sulfur blooming(deposition) occurs on the surface of rubber and cause poor adhesion of rubber.
Since insoluble sulfur is dispersed in the material rubber, it can be used to suppress blooming.
For production of insoluble sulfur, polished handling technique for the company foundation
product “carbon disulfide” is required.
High quality is demanded in insoluble sulfur by tire manufacturers.
In March 2017, production facility expansion was completed, and our production capacity wasincreased to 1.3 times.
■ Insoluble Sulfur■ Manufacturing processes for insoluble sulfur (schematic diagram)Heating
450°C

Gaseous sulfur
Slow coolingRapid cooling(using carbon disulfide)
n=400-1,200nNormal sulfur

Insoluble Sulfur

37

Chemical operations②Organic Chemicals

Ⅴ－５. Organic Chemicals(Millions of yen)

[Major products]
Chlorianted Isocyanurates（NEO-CHLOR）… for swimming pool and septic tankdisinfectants□ HIPOLKA… Wastewater/sludge treatment
agent□

FY2021
Consolidated
Net sales
49,590Organic
Chemicals
10,709(21.6%)39

Ⅴ－６. Chlorinated Isocyanurates-Product IntroductionApplications: Sanitizing agent for swimming pools and septic tanks, chlorine-based sanitizing agent forspas and home baths□ Main customers: Swimming pool operators, schools, general consumers (U.S.)□ Main component: Chlorinated Isocyanurates□ Compared to other disinfectant agents for swimming pools, “NEO-CHLOR” is characterized by longer
duration in outdoor pools and little quality deterioration even after a long period of storage, as it undergoes
little degradation caused by ultraviolet rays.
□ It delivers strengths in “NAPIX,” an automatic chlorine feeder for swimming pools and business baths.
□ Utilizing the strong oxidation, bleaching, and cleaning power of chlorine, we are developing various fields
of application such as industrial and home sanitary field, ballast water (seawater used as weight on thebottom of the ship) treatment, drinking water application, and sanitation management applications invarious facilities.
□

 NEO-CHLOR Product group Image of ballast water sanitization

Filter

Sanitization

Neutralization

Mixing
Cl

O

N

Cl N

O
N Cl

Sea water
injection
BackwashBallast tank
Sea water
discharge

O
ChlorinatedIsocyanurates「NEO-CHLOR MARINE」

40

Chemical operations③Fine Chemicals

Ⅴ－７. Fine Chemicals(Millions of yen)

FY2021
Consolidated
Net sales
49,590[Major products]
Fine Chemicals
8,705(17.6%)

Water-soluble rust preventive agent for
printed wiring boards (OSP)□ Advanced & Specialty Chemicals…
Imidazoles (curing agent of epoxy resin)□Glicoat-SMD…

□

THEIC

□

Solder resist

Resin modifier, raw material for drug
… Raw material for heat-resistant wirevarnish42

Ⅴ－８. OSP: Organic Solderability Preservative-Product Introduction□

□
□

□

□

□

Application: Water-soluble rust preventive agent for printed wiring boards
OSP: Organic Solderability Preservative]
Main customers: Printed wiring board manufacturers all over the world
By forming an organic coating on the copper circuit of the printed wiring board to preventoxidation of the exposed copper circuit, it ensures good soldering performance in theimplementation process, and contributes to reliable electronic component manufacture .
The main component of OSP is imidazole, which has a property to selectively undergo chemical
reaction with copper. Our strength is that we are also an imidazole manufacturer and cansynthesize the main ingredient to suit the required properties of OSP.
While rust preventive agents for printed circuit boards include metal plating in addition to OSP,
the percentage of OSP is still increasing.
Glicoat-SMD has acquired a lot of material designations from major electrical manufacturers, andhas become an industry standard.
By increasing the environmental performance ahead of other companies, we are increasing the
adoption results for automotive electrical components and semiconductor package boards.
 Printed wiring boards going throughGlicoat-SMD treatment tank

 Treatment with Glicoat-SMD (schematic diagram)
Substrate

Solder resist

Glicoat-SMD coating

O2

O2

Coppercircuit

Treatment with Glicoat-SMD (left picture)43

Ⅴ－９. Advanced & Specialty Chemicals-Imidazoles
□
□
□

□

□

□

Application: Curing agent and curing accelerator for epoxy resin*, raw material for drugs
Main customers: Resin material manufacturers and drug manufacturers
Imidazole is used in a wide range of applications, including curing agent for epoxy resin and urethane
resin, raw material of drugs and agricultural chemicals, and raw material of various industrial
chemicals such as rust preventive agents.
The majority of our company sales come from application as an epoxy resin curing agent.
Epoxy resin which used imidazole as a component has optimal properties for electrical and electronic
component applications.
We have a lineup of various imidazoles to support the diverse curing speeds and properties
demanded by the users.
In the fields where competitive products (non -imidazole products) were strong, there isa movement for customers to newly adopt imidazole to improve the product performance.

*Epoxy resin: A collective term for resin-like compounds with epoxy groups that readily react at theends of a molecule, and thermosetting synthetic resins that are formed by polymerizing
the compounds with curing agents. Used in printed circuit boards, paints, etc. in addition to adhesives.
 Electronic part using epoxy resin (example)

Applications of imidazoles from our company

Polyurethane
ポリウレタンDrugs and agricultural chemicals
医農薬
Automobiles
自動車

other
その他

･ Rubber applications･ Adhesive forstructures

Industrial
paint
工業用塗料

N

NH

Imidazole

Electrical and electronic
insulating materials

44Ⅴ－１０. Advanced & Specialty Chemicals-Imidazoles
Engine CPU

Car navigation system[Laminated plate, sealing agent,solder resist ink]

[Liquid crystal sealing material]

Engine hood
[CFRP (reinforcedcarbon fiber)]Frame structure[Adhesive forstructures]Electric motor

Tires [Tire grip improving agent][Insulating powder
paint]Air hose[Acrylic rubber agent]45

Ⅴ－１１. Focused Products (Printed Wiring Boards Agents)
GliCAP®
Adhesion improving agent between copper circuit and resin on printed wiring boards.
Conventionally, unevenness was formed on surface by roughening (etching) the copper so thatthe adhesion to resin was improved by “mechanical bonding” (anchor effect).
As the performance of semiconductors is improved, it is becoming more difficult toroughen the copper on package boards implementing high performancesemiconductors, with the copper circuit width decreasing to ultrafine level.
Copper circuits with smooth surface are required for high-frequency server boards for whichfurther acceleration is being demanded to achieve practical application of the 5th generation mobile
communication system (5G), since transmission loss is caused by the unevenness of the copper
surface in the high-frequency range.
GliCAP® has both properties to “strongly bind to resin” and “strongly bind to copper,”and can improve the adhesion “chemically” without roughening the copper surface.
We are including applications other than those in printed circuit boards for GliCAP ® in the
future.










Resin

Conventional
method(roughening)
従来方法（粗化）

GliCAP®
(smooth)

Resin

Resin

CopperCopperStrong bonding with resin

Strong bonding with copper
Copper46

Ⅴ－１２. Focused Products (Advanced & Specialty Chemicals)











Advanced materials
Advanced materials at our company refer to the products (compounds) that can improvevarious functions by blending them as materials for electronic parts such as semiconductorsthat are used in electronic devices, etc.
Demands for improvement in the properties of resin materials to be used (heat resistance, electricalproperties, etc.) are increasing as electronic devices evolve, and there are increasing
opportunities to consider the functional materials of our company.
The range of examination for the functional materials of our company is quite wide, andexaminations are being made even with carbon fiber reinforced plastics (CFRPs) that areused as structural materials for automobiles and aircrafts with a purpose to improve heat
resistance and strength.
Using the organic synthesis technology cultivated with imidazole and isocyanuric
acid, our company is committed to research and development of new functional material
products.
Construction of a plant equipped for high quality such as
low metal control has been decided in order to produce
state-of-the-art semiconductor process materials.
Its construction began in February 2020, and is scheduled
to be completed in July 2021.

47

Ⅴ－１３. Focused Products (Advanced & Specialty Chemicals)A new isocyanuric acid derivatives
We developed this material by utilizing isocyanuric acid synthesis technology we haveaccumulated.
It has excellent heat resistance, light resistance, and transparency, and is used as a modifier for
sealing agent, etc.












New adhesion improver
A resin modifier that improves adhesion to inorganic materials such as metals through addition to
the resin. Since it delivers adhesion equivalent to the conventional modifiers while having no sulfur
content, it can improve the metal corrosivity, which was a problem with the conventional
product.
We are developing its application in a wide range of resin materials including epoxy systemcommonly used in electronic parts, acrylic system, urethane system and polyimide system.
Benzoxazine
A resin with excellent heat resistance, flame
resistance and electrical properties.
Examination is being made as a semiconductors
sealing agent and carbon fiber reinforced plastics(CFRPs) .

■ Benzoxazine48

Ⅴ－１４. Focused Products (Advanced & Specialty Chemicals)

Glycoluril derivatives

A multi-functional resin modifier with transparency and high heat resistance.
It has 4 functional groups and is expected to form hardened materials with a high crosslinking
density.
■ Glycoluril derivatives

Thiol group

Glycoluril derivativesProducts having a thiol groups (-SH) as a functional group will rapidly cure with epoxy resin at a lowtemperature. Compared to the conventional modifiers, cured resin has excellent heat resistance, moistureresistance, acid resistance, alkali resistance, and hardness, and it can significantly improve theresistance to heat and moisture, which had been a problem.
It has been adopted in the field of electronic materials that continue to advance inperformance and miniaturization.

49

Housing Materials

operations

Housing Materials operations④Interior, Exterior
Finishes and Paving

Materials

Ⅴ－１５. Interior, Exterior Finishes and Paving Materials[Major products]□□□

Interior materials (silicate walls, natural
material walls)
Plastered wall materials withmoisture control function and harmful
chemical substance and daily odor
adsorption/decomposition function
Exterior materials
Wet exterior material for housing
Paving materials
Natural stone paving materials, recycled
glass paving materials
Rubber chip paving materials(Millions of yen)

FY2021
Consolidated
Net sales
49,590Interior, Exterior Finishes
and Paving Materials
1,475(3.0%)52

Ⅴ－１６. Interior, Exterior Finishes and Paving Materials
Interior materials
The business started with "JULUX," the first industrial product for plastered wall material
in Japan, which was developed for in-house chemical glue CMC application.
It is difficult to handle Juraku wall, traditional Japanese wall, but with our wall materials,
uniform quality can be maintained only by mixing a specified amount of water. Our
plastered wall material is freshly drawing attention because of its property of highadsorption of chemicals that cause sick building syndrome such as formaldehyde as well asodor.
We are deploying the products characterized by high designability to our target market ofcommercial and public space design and custom-designed houses. Colors and expressions
are brought to a space by three-dimensional and various patterns that can be only achieved
with thick coating.
■ Interior materials■ Interior materials

53Ⅴ－１７. Interior, Exterior Finishes and Paving MaterialsExterior and paving materialsWe also expand our business to “exterior” to cover the outside of buildings andexterior parts, and “paving” to cover the surfaces of roads and approaches.
Our exterior materials come in wide variations including colors and can create subtle expressions
as they are finished manually to the texture of the surface. As paving materials, we offer
materials such as natural stone, natural sand, and rubber chips.
For exterior materials and paving materials, we create synergistic effects by making use of
our sales channels for exterior products.

■ Paving materials■ Paving materials

54

Housing Materials operations⑤Exterior Products

Ⅴ－１８. Exterior Products(Millions of yen)

[Major products]
Home Exterior Products□ Gates, fences, car ports, and decks
First product□Accordion gatesin industry(expansion type gates)
which was□ Art Walldeveloped by(aluminum system fence)
our company

Exterior
Products
17,285(34.9％)

FY2021
Consolidated
Net sales
49,590Decorative Exterior Products□ Large gates, fences, pathway shelters,
bicycle parking spaces□
Garbage accumulation storage (first productin industry which was developed by ourcompany)□ Green roof, etc.

56

Ⅴ－１９. Home Exterior Products









In 1971, when the motorization was rapidly progressing, we devised an “accordion
gate,” which can be easily opened and closed with an expansion mechanism, and which
can respond to the residential situation with limited space in Japan, and it became thestandard for gates in front of the car shed.
Since then, we have continued to add to the product lineup for general gates, carsheds (car ports), fences, deck materials, terraces, etc.
We also devote our efforts in design, in addition to our focus on functions, and won
the first “G mark” (current Good Design Award) in the exterior industry in 1984.
‘Fun roof,’ our terrace roof with a sample design which harmonizes to the houseusing flat, wood-like ceiling materials received the 2019 Good Design Award.

■ Terrace■ Car port

■ Accordion gate57

Ⅴ－２０. Decorative Exterior Products■ Pathway shelter■ Bicycle parking space■ High strength car stops■ Garbage accumulation storage）58

Ⅴ－２１．Efforts in Housing Materials Business

We are adding to the lineup of high-strength exterior products that are resistant to wind and snow
and promoting sales expansion, based on the fact that large-scale disasters such as typhoons havebeen recently happening one after another over the country.
We deploy the strength standards and quality cultivated in the decorative area to all products andare developing products with high quality and strength.

As parts of the lineup of high-strength products, we have commercialized fences for detachedhouses, and independent terraces in addition to the large fences, archways, Large fences, and car
ports.

■ Fences■ Shelter■ Fences■ Car port

■ Terrace

59

Contact Information
Corporate planning department,
Shikoku Chemicals Corporation

TEL：+81-(0)877-21-4119

FAX：+81-(0)877-22-0411
www.shikoku.co.jp[Note regarding this document]
Forward-looking statements or projections mentioned in this document, including earnings are based on
currently available information and actual results may differ from the projection due to various factors.
Further, the purpose of this material is to provide information to the investors, and not to serve as arecommendation to buy or to sell. Please note that Shikoku Chemical Corporation will not be responsible forthe consequences of investments etc.