Consolidated Financial Results
for the Fiscal Year Ended December 31, 2023
[Japanese GAAP]
January 30, 2024
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 annual general shareholders’ meeting: March 28, 2024
Scheduled date of commencing dividend payments: March 7, 2024
Scheduled date of filing annual securities report: March 28, 2024
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled(Amounts less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 (from January 1, 2023 to
December 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
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2023
63,117
－
8,019
－
9,280
－
7,853
－
December 31, 2022
46,566
－
6,462
－
7,270
－
4,997
－
(Note) Comprehensive income: Fiscal year ended December 31, 2023: ¥9,449 million [–%]
Fiscal year ended December 31, 2022: ¥3,988 million [–%]
Dilutedearnings
per share

Basic earnings
per share

Return on
equityRatio ofordinary profit
to total assets

Ratio ofoperating profit
to net sales

Fiscal year ended
Yen
Yen
%
%
%
152.12
－
9.4
7.5
12.7
December 31, 2023
December 31, 2022
93.78
－
6.2
6.3
13.9
(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal year ended December 31, 2023: ¥– million
Fiscal year ended December 31, 2022: ¥– million
The Company has changed the account closing date from March 31 to December 31 beginning from the fiscal year
ended December 31, 2022. Accordingly, changes from the previous corresponding period are not presented as theperiods of the fiscal year under review (January 1, 2023 to December 31, 2023) and the previous fiscal year (April
1, 2022 to December 31, 2022) do not match.
(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Net assets per share

Million yen%

Yen131,046
86,867
As of December 31, 2023
117,176
81,806
As of December 31, 2022
(Reference) Equity: As of December 31, 2023: ¥86,157 million
As of December 31, 2022: ¥81,323 million

65.7
69.4

1,703.25
1,541.17

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Fiscal year ended
December 31, 2023
December 31, 2022

12,9502,919(3,559)(3,669)Cash and cash
equivalents
at end of period
Million yen(2,810)1,423

43,59736,683

2. Dividends
1stquarterend
Fiscal year ended
December 31,
2022
Fiscal year ended
December 31,
2023
Fiscal year ending
December 31,
2024 (Forecast)

Annual dividends
2nd
3rd
Yearquarter- quarterend
end
end

Total

Total
dividends(annual)Ratio of
Payout ratio dividends to(consolidated)
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

–

13.00

–

13.00

26.00

1,375

27.7

1.7

–

14.00

–

14.00

28.00

1,420

18.4

1.7

–

14.00

–

14.00

28.00

25.8

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2024 (from January 1,
2024 to December 31, 2024)(% indicates changes from the previous corresponding period.)
Operating profit

Net sales
Million yen

Full year

64,000% Million yen

1.4

7,800

Ordinary profit% Million yen(2.7)

Profit attributableto owners of parent% Million yen

8,200 (11.6)

Basic earnings
per share%Yen

5,500 (30.0)

108.73* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) 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(3) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares):December 31, 2023: 50,760,663 shares
December 31, 2022: 52,973,563 shares2) Total number of treasury shares at the end of the period:
December 31, 2023: 176,415 shares
December 31, 2022: 206,031 shares
3) Average number of shares during the period:
Fiscal year ended December 31, 2023: 51,628,867 sharesFiscal year ended December 31, 2022: - shares(Note) The Company has changed the account closing date from March 31 to December 31 beginning from the fiscal
year ended December 31, 2022. Accordingly, the average number of shares during the period for the fiscal
year ended December 31, 2022 is not presented as the periods of the fiscal year under review (January 1,
2023 to December 31, 2023) and the previous fiscal year (April 1, 2022 to December 31, 2022) do not match.

* These annual financial results are outside the scope of audit 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 “(4) Future Outlook” under “1.
Overview of Operating Results, etc.” on page 4 of the attached documents.

Table of Contents
1. Overview of Operating Results, etc. ........................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review ............................................................ 2(2) Overview of Financial Position for the Fiscal Year under Review ........................................................... 3(3) Overview of Cash Flows for the Fiscal Year under Review...................................................................... 4(4) Future Outlook .......................................................................................................................................... 4(5) Basic Policy regarding Distribution of Earnings and Dividends for the Current and Next Fiscal Years .. 4
2. Basic Policy on Selection of Accounting Standards ................................................................................... 4
3. Consolidated Financial Statements and Primary Notes ............................................................................ 5(1) Consolidated Balance Sheets ................................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income .......................................................... 7
Consolidated Statements of Income ............................................................................................................. 7
Consolidated Statements of Comprehensive Income ................................................................................... 8(3) Consolidated Statements of Changes in Shareholders’ Equity .................................................................. 9(4) Consolidated Statements of Cash Flows ................................................................................................. 11(5) Notes to Consolidated Financial Statements ......................................................................................... 12(Notes on going concern assumption) ................................................................................................... 12(Segment information, etc.) ................................................................................................................... 12(Per share information) ......................................................................................................................... 15(Significant subsequent events) ............................................................................................................. 15

1

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
The Company has changed the last day of the fiscal year from March 31 to December 31 beginning from theprevious fiscal year. All consolidated subsidiaries of the Company have also changed their fiscal year-end datefrom March to December. Therefore, “year-on-year” comparisons of segments hereunder compare results of the
fiscal year under review and reference figures for the twelve-month period from January 2022 to December 2022.
In addition, as described in “3. (5) Notes to Consolidated Financial Statements (Segment information, etc.),”the Company has changed the measurement method of segment profit starting from the fiscal year under review.
The following year-on-year comparisons are calculated by restating the figures for the same period of theprevious year after the change.
The Japanese economy during the fiscal year under review continued to recover moderately, but adverse
effects such as higher prices resulting from increased labor and logistics costs and supply constraints due tomanpower shortages are causing concern. In overseas economies, while the U.S. economy remained robust,
driven by consumer spending, China’s recovery has slowed down, and geopolitical risks are rising as seen in the
prolonged conflict in Ukraine and growing tensions in the Middle East.
Under these circumstances, for the fiscal year under review, the Group posted net sales of ¥63,117 million(up 2.7% year-on-year), operating profit of ¥8,019 million (down 7.9% year-on-year), ordinary profit of ¥9,280
million (down 5.7% year-on-year) and profit attributable to owners of parent of ¥7,853 million (up 10.9% yearon-year). The Chemicals and Housing Materials operations secured an increase in revenue due to factors
including the revision of selling prices and yen depreciation, renewing record highs, while operating profit andordinary profit decreased due to increased production costs including raw material costs and the amortizationload of new capital expenditure. On the other hand, profit attributable to owners of parent rose to another record
high due to gain on sale of investment securities in extraordinary income.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, recently saw a slight recovery although supply and demand
continued to loosen in the Chinese and other markets as we revised sales strategies in response to the depreciationof the yen. Sales of carbon disulfide for rayon and cellophane exceeded those of the previous year mainly due
to increased sales to new overseas customers. As for sales of sodium sulfate for bath agents and detergents, theCompany improved profitability by the price pass-through of the impact of hiking purchase price due to yen
depreciation in the domestic market.
(Organic chemicals)
Regarding chlorinated isocyanurates for disinfectants, sales exceeded those of the previous year in thedomestic market due to the penetration of price hikes and solid demand for pools and baths in the post-pandemic
economy. In the U.S. market, sales declined slightly from the previous year, with customers’ inventory
adjustments and restrained purchasing under inflation persisting since the second half of the fiscal year underreview.
(Fine chemicals)Electronic chemicals, particularly Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability
Preservative) for printed wiring boards saw recovery in recent cargo movement as semiconductor and electronics
markets bottomed out and customers’ inventory adjustment progressed since the second half of the fiscal year underreview, after weak demand in the first half. For advanced & specialty chemicals, sales of epoxy resin curing agent(imidazoles) exceeded those of the previous year due to recovery in the electronics market while those of resin
modifier (glycoluril derivatives, etc.) were sluggish due to factors including a decrease in demand for finished2

products, and sales of semiconductor process materials surpassed those of the previous year due mainly to progressin customer evaluations and the expansion of new demand for prototype production.
As a result, net sales for the chemicals operations segment were ¥43,332 million (up 3.5% year-on-year).
However, segment profit was ¥6,381 million (down 7.0% year-on-year) due to soaring raw material costs, theamortization load of the Company’s new plant of chlorinated isocyanurates (NEO2022), which began operation,
and a decrease in sales of highly profitable fine chemicals products, despite the favorable impact of yen
depreciation and lower export logistics costs.
2) Housing Materials operations
The number of new housing starts continued to decline, particularly for owned houses, due to a surge inconstruction costs and other factors, and demand for interior, exterior finishes and paving materials and exterior
products remained sluggish. Against this backdrop, the price revision implemented in January 2023 of the fiscal
year under review and efforts to pass on high raw material costs contributed to increased revenue, but selling
expenses increased as a result of factors including soaring raw material costs and resumption of face-to-facesales activities after COVID-19, which led to decreased profit.
As a result, net sales for the housing materials operations segment were ¥18,712 million (up 0.9% year-onyear), and segment profit was ¥1,508 million (down 10.4% year-on-year).
Reference information[Overseas net sales]
Twelve months ended December 31, 2022
(from January 1, 2022 to December 31, 2022)

Fiscal year ended December 31, 2023
(from January 1, 2023 to December 31, 2023)

Net sales(Million yen)

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

Overseas net sales toconsolidated net sales (%)

Asia

6,712

10.9

6,009

9.5

North America

14,15223.0

15,011

23.8

Other regions

1,767

2.9

1,573

2.5

Total

22,63236.8

22,59435.8

Consolidated net
sales

61,475

63,117(2) Overview of Financial Position for the Fiscal Year under Review
Status of assets, liabilities and net assets
Total assets increased by ¥13,870 million from the end of the previous fiscal year to ¥131,046 million. Major
increases were ¥6,664 million in cash and deposits and ¥2,758 million in construction in progress.
Liabilities increased by ¥8,808 million from the end of the previous fiscal year to ¥44,178 million. Major
increases were ¥2,700 million in the current portion of long-term borrowings and ¥2,535 million in income
taxes payable.
Net assets increased by ¥5,061 million from the end of the previous fiscal year to ¥86,867 million. A major
increase was ¥3,268 million in retained earnings.
As a result, equity ratio fell to 65.7%, from 69.4% at the end of the previous fiscal year.

3(3) Overview of Cash Flows for the Fiscal Year under Review
Cash flows provided by operating activities totaled ¥12,950 million (an increase of ¥10,031 million
compared to the previous 9-month fiscal year). Major cash inflows were profit before income taxes of ¥11,369
million and depreciation of ¥3,344 million.
Cash flows used in investing activities totaled ¥3,559 million (a decrease of ¥110 million compared to theprevious 9-month fiscal year). The major component was purchase of property, plant and equipment of ¥4,987
million.
Cash flows used in financing activities totaled ¥2,810 million (an increase in outflows of ¥4,234 million
compared to the previous 9-month fiscal year). A major cash inflow was proceeds from long-term borrowingsof ¥4,100 million, which was offset by major cash outflows in repayments of long-term borrowings of ¥3,244
million and purchase of treasury shares of ¥3,219 million.
As a result, cash and cash equivalents totaled ¥43,597 million (an increase of ¥6,914 million from the endof the previous fiscal year).
(4) Future Outlook
Consolidated financial results forecast for the fiscal year ending December 31, 2024 is as follows.
Net sales
Fiscal year ending December
31, 2024 (full year)
Fiscal year ended December
31, 2023 (full year)
Change (%)(Million yen)
Profit attributableto owners of parent

Operating profit

Ordinary profit

64,000

7,800

8,200

5,500

63,117

8,019

9,280

7,853

1.4

(2.7)

(11.6)(30.0)(Notes) 1. The major exchange rates assumed in the above financial results forecast were ¥140 to $1 and ¥150 to€1.
2. The above financial results forecasts are based on information currently available to the Company as ofthe date of this report, and do not constitute a guarantee of future results. Actual results may differ
significantly from these forecasts due to a wide range of factors.

(5) Basic Policy regarding Distribution of Earnings and Dividends for the Current and Next Fiscal Years
As a basic policy for shareholder returns, the Company aims to achieve “a payout ratio of 30% and a total
payout ratio of 50% based on consolidated financial results” under the “Challenge 1000” long-term vision
towards 2030.
The Company has decided to increase the annual dividend by ¥2 per share compared to ¥26 per share in theprevious fiscal year, bringing the total to ¥28 per share. The year-end dividend will be ¥14 per share after
deducting the interim dividend already paid (¥14).
As for the fiscal year ending December 31, 2024, in consideration of the above policy, business performanceand financial position, the Company plans to pay an interim dividend of ¥14 per share. The Company also plansto pay a year-end dividend of ¥14 per share. As a result, the annual dividend forecast for the fiscal year ending
December 31, 2024 is ¥28 per share.

2. Basic Policy on Selection of Accounting Standards
The Group plans to adopt Japanese GAAP in preparing its consolidated financial statements for the time
being, given that the Group has little need to raise funds from overseas and considering the burden of preparing
its consolidated financial statements based on the International Financial Reporting Standards (IFRS). However,the Group will consider the adoption of IFRS depending on future needs.

43. Consolidated Financial Statements and Primary Notes(1) 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 December 31, 2023

23,283879
3,166
13,362
16,400
8,770
37
4,140
602
(0)
70,642

29,947589
3,021
13,907
17,505
8,947
37
4,400
1,278
(3)
79,631

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

5,926
6,648
8,693
3,446
645
25,360699

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

21,844
1,909
532
1,070
(0)
25,35551,415131,046(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 December 31, 2023

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

8,940
523
3,530
5,783
1,476
2,696
558
4
84
3,097
26,694

14,53449
1,004

12,906
2,191
998

67

64

656
381
64
328
17,08535,370

591
370
43
317
17,48344,1786,867
5,711
62,808(240)
75,147

6,867
5,711
66,077(226)
78,430

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

5,044
2,274
252
155
7,726
710
86,867131,046

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(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
Donations
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on sale of investment securities
Loss on revision of retirement benefit plan
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

Fiscal year ended
December 31, 2022
46,566
27,723
18,843Fiscal year ended
December 31, 2023
63,11739,474
23,643

5,337
580
1,695
108

5,491
744
2,353
146

12

11

1,180
3,465
12,381
6,462

1,757
5,118
15,623
8,019

74
395
334
28
832

217
477
549
67
1,313

19
－
4
24
7,270

34
10
8
52
9,280

－
12
21
－
33

3
2,088
398
32
2,522

－
31
400
－
24
456
6,848
1,666
159
1,826
5,022
24
4,997

316
58
41
16
－
432
11,369
3,494
(9)
3,485
7,884
30
7,853

Consolidated Statements of Comprehensive Income(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

Fiscal year ended
December 31, 2022
5,022

Fiscal year ended
December 31, 2023
7,884

(1,090)103(46)(1,033)
3,988

1,277
115
171
1,565
9,449

3,967

9,418

21

30

(3) Consolidated Statements of Changes in Shareholders’ Equity
Fiscal year ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(Million yen)
Shareholders’ equity
Share capital

Capital surplus

6,867

5,740

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Cancellation of treasury shares
Reversal of revaluation reserve
for land
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Retainedearnings

Treasury shares

60,475

(250)

Total
shareholders’equity72,833(1,335)(1,335)

4,997

4,997
(1,328)
1,338(1,338)(1,328)
－

9

9

(29)

(29)
5,711

－
6,867

(29)

2,333
62,808

9
(240)

2,314
75,147

Accumulated other comprehensive income
Valuation
Revaluationdifference on
reserve foravailable-forland
sale securities

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Cancellation of treasury shares
Reversal of revaluation reserve
for land
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

4,853

2,298

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

Total
accumulated
othercomprehensive income

32

30

7,215

Noncontrollinginterests

859

Total net
assets80,908(1,335)
4,997(1,328)－9(29)(1,086)

(9)

103

(46)

(1,039)(377)(1,416)(1,086)
3,766

(9)
2,288

103
136

(46)
(15)

(1,039)
6,175

(377)
482

897
81,806

9

Fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)(Million yen)
Shareholders’ equity
Share capital

Capital surplus

6,867

5,711

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Cancellation of treasury shares
Reversal of revaluation reserve
for land
Disposal of treasury shares bystocks payment trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

Retainedearnings

Treasury shares

62,808

(240)

Total
shareholders’equity75,147(1,399)(1,399)

7,853

7,853
(3,219)3,200(3,200)(3,219)
－

14

－
6,867

－
5,711

14

3,268
66,077

33

33

14
(226)

3,282
78,430

Accumulated other comprehensive income
Valuation
Revaluationdifference on
reserve foravailable-forland
sale securities

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Cancellation of treasury shares
Reversal of revaluation reserve
for land
Disposal of treasury shares bystocks payment trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

3,766

2,288

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit
plans

136

(15)

Total
Nonaccumulated
controlling
otherinterests
comprehensive income

6,175

482

Total net
assets81,806(1,399)7,853(3,219)
－
14
33

1,277

(14)

115

171

1,550

227

1,778

1,277
5,044

(14)
2,274

115
252

171
155

1,550
7,726

227
710

5,061
86,86710

(4) Consolidated Statements of Cash Flows(Million yen)
Fiscal year ended
December 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Gain on bargain purchase
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Subsidy income
Loss on retirement of property, plant and equipment
Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
Other, 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 period

11

Fiscal year ended
December 31, 2023

6,848
2,112
400
–
(19)
(64)
(470)
19
(12)
(21)
31
–
(162)
(1,693)
(574)
192
(792)
5,794
472
(17)
21
(3,351)
2,919

11,369
3,344
41
(32)
47
(35)
(695)
34
(2,071)
(398)
58
312
170
(240)
1,257
93
(195)
13,060696(34)
398(1,171)
12,950––(3,018)–(27)(3,705)3,000(4,987)
82
(32)

–

(81)

(308)

(712)

70

3,694

(385)
(3,669)(817)(3,559)

–
4,600
(74)
(1,328)(1,335)
(3)

960
4,100
(3,244)(3,219)(1,399)
－

(424)

－

(9)
1,423
253
927
35,75536,683(6)(2,810)332
6,914
36,683
43,597

(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Segment information, etc.)(Segment information)
I.
Overview of reportable segments
The Group’s reportable segments are components within the Group for which discrete financial information isavailable and are regularly reviewed by the Company’s Board of Directors for the purpose of determining theallocation of management resources and evaluating performance.
Under the pure holding company SHIKOKU KASEI HOLDINGS CORPORATION, SHIKOKU CHEMICALSCORPORATION and SHIKOKU KASEI KENZAI CORPORATION are engaged in business activities in theirrespective business domains together with subsidiaries operating in the same domains in an integrated manner.
Therefore, the Group’s businesses are comprised of segments classified according to the products and services
attributed to each company. The two reportable segments of the Group are “Chemicals operations” and “Housing
Materials operations.”
The “Chemicals operations” segment is engaged in the production and sale of chemical products such as
inorganic chemicals, organic chemicals and fine chemicals. The “Housing Materials operations” segment is engaged
in the production and sale of building and construction materials such as interior and exterior decorative walls,
exterior products and aluminum shutters.
Calculation methods of net sales, profit (loss), assets, liabilities and other items by reportable segment
The method of accounting for the business segments reported are based on the accounting methods adopted in
the preparation of the consolidated financial statements.
Profit of the reportable segments is based on operating profit.
Inter-segment net sales and transfers are based on market price.
II.

III. Changes in reportable segments(Changes in measurement methods)
Beginning from 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 fiscal year is disclosed based on the measurement method after the change.

12IV. Information on net sales, profit (loss), assets, liabilities and other items by reportable segment
1. Fiscal year ended December 31, 2022 (from April 1, 2022 to December 31, 2022)
Information on net sales, profit (loss), assets, liabilities and other items by reportable segment anddisaggregation of revenue(Million yen)
Reportable segment
Housing
Chemicals
Materials
Total
operations
operations
Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts withcustomers
Other revenue
Net sales to outside customers
Inter-segment net sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation
Impairment losses
Increase in property, plant andequipment and intangible
assets

Other(Note) 1

Total

Amount recorded inconsolidated
Adjustment(Note) 2 financial statements(Note) 3

10,081
14,832
7,466

–
–
–

10,081
14,832
7,466

–
–
–

10,081
14,832
7,466

–
–
–

10,081
14,832
7,466

–

1,009

1,009

–

1,009

–

1,009

–
–

12,344–

12,344––813

12,344813––

12,344813

32,38013,35345,733813

46,547–46,54732,38013,35345,73319833

1946,566––

19
46,566

0

1

2

184

186

(186)

–

32,3805,374
48,88813,355980
16,63945,736
6,355
65,527

1,017
106
2,212

46,753
6,462
67,740(186)(0)
49,43546,566
6,462
117,176

1,769
–

229
400

1,998
400

32
–

2,031
400

81
–

2,112
400

2,821

684

3,506

9

3,516

410

3,926

(Notes) 1. The “Other” category represents business segments not included in the reportable segments, mainly
consisting of the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(0) million includes profit (loss) and others not allocated tobusiness segments.
The adjustment for segment assets of ¥49,435 million includes inter-segment eliminations of ¥(1)million and corporate assets in the amount of ¥49,437 million not allocated to each reportable segment.
The adjustment for increase in property, plant and equipment and intangible assets of ¥410 million isthe amount of capital expenditure related to corporate assets not allocated to each reportable segment.
3. Segment profit is adjusted with operating profit on the consolidated statements of income.

13

2. Fiscal year ended December 31, 2023 (from January 1, 2023 to December 31, 2023)
Information on net sales, profit (loss), assets, liabilities and other items by reportable segment anddisaggregation of revenue(Million yen)
Reportable segment
Housing
Chemicals
Materials
Total
operations
operations
Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts withcustomers
Other revenue
Net sales to outside customers
Inter-segment net sales ortransfers
Total
Segment profit
Segment assets
Other items
Depreciation
Impairment losses
Gain on bargain purchase
Increase in property, plant andequipment and intangible
assets

Other(Note) 1

Total

Amount recorded inconsolidated
Adjustment(Note) 2 financial statements(Note) 3

13,686
19,615
10,029–––13,686
19,615
10,029–––13,686
19,615
10,029–––13,686
19,615
10,029

–

1,274

1,274

–

1,274

–

1,274

–
–

17,438–17,438––1,047

17,4381,047––

17,4381,047

43,332

18,712

62,044

1,047

63,092–63,092–43,332–
18,712–
62,044

25
1,073

25
63,117––

25
63,117

7

2

10

272

283

(283)

–

43,3396,381
60,614

18,715
1,508
21,59562,055
7,889
82,210

1,345
103
1,841

63,401
7,992
84,052(283)
26
46,994

63,117
8,019
131,046

2,871
–
32

272
41
–

3,144
41
32

34
–
–

3,178
41
32

165
–
–

3,344
41
32

4,634

275

4,909

23

4,932

362

5,295

(Notes) 1. The “Other” category represents business segments not included in the reportable segments, mainly
consisting of the IT systems operations and food operations.
2. The adjustment for segment profit of ¥26 million includes profit (loss) and others not allocated tobusiness segments.
The adjustment for segment assets of ¥46,994 million includes inter-segment eliminations of ¥(791)
million and corporate assets in the amount of ¥47,785 million not allocated to each reportable segment.
The adjustment for increase in property, plant and equipment and intangible assets of ¥362 million isthe amount of capital expenditure related to corporate assets not allocated to each reportable segment.
3. Segment profit is adjusted with operating profit on the consolidated statements of income.

14(Per share information)
Fiscal year ended December 31,
2022(from April 1, 2022
to December 31, 2022)

Fiscal year ended December 31,
2023(from January 1, 2023
to December 31, 2023)

1,541.17 yen

1,703.25 yen

93.78 yen152.12 yen

Net assets per share
Basic earnings per share(Notes) 1. The Company’s shares held in the trust related to the stock compensation plan, which are recorded astreasury shares under shareholders’ equity, are included in treasury shares that are excluded from thecalculation of the average number of shares during the period when calculating basic earnings per share,
and are also included in treasury shares that are excluded from the total number of issued shares at theend of the period when calculating net assets per share.
The average number of shares during the period excluded for the fiscal year under review was 120
thousand shares, while the average number of shares during the period excluded for the previous fiscal
year was 140 thousand shares. Diluted earnings per share are not provided, as there are no dilutive
shares.
2. The basis for calculation of basic earnings per share is as follows:
Fiscal year ended December 31,
2022(from April 1, 2022
to December 31, 2022)

Fiscal year ended December 31,
2023(from January 1, 2023
to December 31, 2023)

4,997

7,853

–

–

4,997

7,853

53,29051,628

Profit attributable to owners of parent(Million yen)Amount not attributable to commonshareholders (Million yen)
Profit attributable to owners of parent
related to ordinary shares(Million yen)
Average number of ordinary shares during
the period (Thousand shares)

3. The basis for calculation of net assets per share is as follows:
As of December 31, 2022

As of December 31, 2023

81,80686,867

Amount deducted from total net assets (Million yen)

482

710

(Non-controlling interests included in above) (Million yen)

[482]

[710]

81,32386,15752,76750,584

Total net assets (Million yen)Amount of net assets related to ordinary shares at end of
period (Million yen)
Number of ordinary shares used in the calculation of net
assets per share at end of period (Thousand shares)(Significant subsequent events)
There is no relevant information.

15