SHIKOKU CHEMICALS CORPORATION

Stock Code：4099
October 26, 2018

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2018
[under Japanese GAAP](Amounts less than one million yen are rounded down)

1．Consolidated financial results for the six months ended September 30, 2018(from April 1, 2018 to September 30, 2018)(1) Consolidated operating results（Millions of yen, except per share amounts; Percentages indicate year-on-year changes ）Six months ended
Six months ended
September 30, 2018
September 30, 2017%%
Net sales
25,1300.824,920
3.4
Operating income
3,441(13.3)
3,967
16.9
Ordinary income
3,746(11.3)
4,225
17.9
Net income attributable to owners of the2,541(11.6)
2,876
19.3
ParentBasic earnings per share (Yen)
43.50
49.23
Diluted earnings per share (Yen)
Note: Comprehensive income
2,699 million yen(35.1%) 4,158 million yen
101.6%(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

September 30, 2018

(Millions of yen)March 31, 2018

91,19570,06776.0%
69,310 million yen

90,41768,02974.4%
67,264 million yen

2．Dividends
Year ending
March 31, 2019
(Forecast)Year ending
March 31, 2019Year ended
March 31, 2018

Annual cash dividends per share (Yen)
1st quarter end
2nd quarter end
11.00
3rd quarter end
Fiscal year end
11.00
Total
22.00
Note: Revisions to the cash dividends forecasts most recently announced: None

11.00
11.00
22.00

3．Forecast of consolidated operating results for the year ending March 31, 2019(from April 1, 2018 to March 31, 2019)（Millions of yen, except per share amounts; Percentages indicate year-on-year changes ）Year ending
March 31, 2019%
Net sales
52,2002.8
Operating income
7,300 (10.6)
Ordinary income
7,600 (10.1)
Net income attributable to owners of the Parent
5,200 (21.3)
Basic earnings per share (Yen)89.01
Note: Revisions to the consolidated operating results forecasts most recently announced: NoneSHIKOKU CHEMICALS CORPORATION

Stock Code：4099
October 26, 2018
4．Others
Number of issued shares outstanding at the end of the periods (ordinary shares)
Number of issued shares including treasury shares
Number of treasury shares

September 30, 2018
58,948,063 shares
527,352 shares

March 31, 2018
58,948,063 shares
527,254 shares

Average number of shares outstanding during the period

Six months ended
September 30, 2018
58,420,747 shares

Six months ended
September 30, 2017
58,423,436 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 arebased 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
March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance 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
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(Millions of yen)
September 30, 201827,872
13,927
1,524
－
5,719
45
2,623
178
ᇞ1
51,89127,001
13,476
1,476
1,800
5,600
65
2,759
211
ᇞ0
52,390

5,541
4,633
8,835
77
608
19,695
224

5,433
4,858
8,835
173
539
19,840192

17,596294718ᇞ318,60538,52590,417

17,783304
688
ᇞ318,77238,80591,195

7,769
405
1,930
120
1,677
79
4,092
16,075

6,863
428
1,930
936
1,188
30
4,183
15,560

1,520
417
1,111
110
2,211
377
563
6,313
22,388

729
472
1,111
102
2,233
377
539
5,567
21,127

Consolidated Financial Statements
Consolidated Balance Sheets
March 31, 2018
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated 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 assets2(Millions of yen)
September 30, 2018

6,867
5,741
47,686
ᇞ321
59,974

6,867
5,740
49,584
ᇞ321
61,871

4,991
18
2,533
ᇞ127
ᇞ126
7,290
764
68,02990,417

5,125
ᇞ30
2,533
ᇞ74
ᇞ115
7,438
757
70,067
91,195

Consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2018

Six months ended
September 30, 2017
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
Loss on abandonment of inventories
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
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

324,92014,731
10,18825,13015,346
9,783

1,973
335
1,095
31
94
9605
2,076
6,221
3,967

2,021
373
1,122
33
93
9621
2,067
6,342
3,4415267
52
10335

6291
98
11408

959－
877
4,225

858
35
1103
3,746

0
9
92－
288
4,226
1,344
2,881
52,876

10
10
3,738
1,183
2,554
132,541

Consolidated Statements of Comprehensive Income
Six months ended
September 30, 2017
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(Millions of yen)Six months ended
September 30, 2018

2,881

2,554

1,268
ᇞ13
4
16
1,276
4,158

129
ᇞ49
53
10
144
2,699

4,142
15

2,689
9

Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Interest and dividend incomeInterest expenses
Subsidy income
Loss on retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from subsidy income
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Proceeds from purchase of shares of subsidiaries resulting in change in scope of consolidation
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in subsidiaries that do not result in change in scope ofOther, 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 period5

Six months ended
September 30, 2017

(Millions of yen)Six months ended
September 30, 2018

4,226
1,090
8
42
27
ᇞ272
9
ᇞ98
513
397
ᇞ367
204
5,878
272
ᇞ9
9
ᇞ914
5,236

3,738
1,080
ᇞ8
2922
ᇞ298
8－10585
ᇞ8
ᇞ930
ᇞ641
3,588
298
ᇞ8－
ᇞ1,6652,212

ᇞ1,661
ᇞ213
ᇞ589
22
ᇞ1,0009
ᇞ3,208

ᇞ714
ᇞ7－
ᇞ3－
ᇞ1,0004
ᇞ1,721

ᇞ19100
ᇞ135
ᇞ5
ᇞ584
ᇞ3－
ᇞ44
ᇞ691
23
1,360
22,817
24,178

－
100
ᇞ75
ᇞ0
ᇞ642
ᇞ3
ᇞ14
ᇞ21
ᇞ657
94
ᇞ71
26,87226,801