Consolidated Financial Results
for the Six Months Ended June 30, 2024
[Japanese GAAP]
July 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 filing semi-annual securities report: August 9, 2024
Scheduled date of commencing dividend payments: September 6, 2024
Availability of supplementary briefing material on financial results: Available
Schedule of financial results briefing session: Scheduled(Amounts less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended June 30, 2024 (from January 1, 2024 to June 30,2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2024
35,225
14.1
4,835
27.7
5,936
25.8
4,032
25.5
Juen 30, 2023
30,880
–
3,786
–
4,720
–
3,212
–
(Note) Comprehensive income: Six months ended June 30, 2024: ¥5,335 million [(0.5)%]
Six months ended June 30, 2023: ¥5,361 million [– %]Basic earnings
per share
Six months ended
June 30, 2024
June 30, 2023

Diluted earnings
per share

Yen

Yen

85.41
61.22

–
–

The Company has changed the account closing date from March 31 to December 31 beginning with the fiscal year
ended December 31, 2022. Accordingly, changes from the previous corresponding period are not presented as the semiannual periods of the fiscal year 2023 (January 1, 2023 to June 30, 2023) and the fiscal year 2022 (April 1, 2022 toSeptember 30, 2022) do not match.

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

131,878
81,271
As of June 30, 2024
86,867
As of December 31, 2023
131,046(Reference) Equity: As of June 30, 2024: ¥80,512 million
As of December 31, 2023: ¥86,157 million

61.1
65.7

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-endquarter-end
Yen

Total

Yen

Yen

Fiscal year ended December 31,
–
14.00
–
14.00
28.00
2023
Fiscal year ending December 31,
–
25.00
2024
Fiscal year ending December 31,
–
25.00
50.00
2024 (Forecast)(Notes) 1. Revisions to the cash dividends forecast most recently announced: Yes
2. For details, please also refer to the Notice Regarding Revision of Basic Policy for Shareholder Returns,
Dividends of Surplus (Interim Dividend), Revision of Year-end Dividend Forecast, and Abolition of
Shareholder Special Benefit Program (Japanese only) released today (July 30, 2024).
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.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillion yen% Million yen% Million yen% Million yen

Full year
68,000
7.7
8,200
2.2
9,500
2.4
(Note) Revisions to the financial results forecast most recently announced: Yes

7,900

%

Yen

0.6

171.54* Notes:(1) Significant changes in the scope of consolidation during the period: No(2) Accounting policies adopted specially for the preparation of semi-annual 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, 2024: 44,869,563 shares
December 31, 2023: 50,760,663 shares2) Total number of treasury shares at the end of the period:
June 30, 2024: 176,804 shares
December 31, 2023: 176,415 shares
3) Average number of shares during the period (cumulative from the beginning of the fiscal year):Six months ended June 30, 2024: 47,217,749 shares
Six months ended June 30, 2023: 52,476,931 shares* These semi-annual financial results are outside the scope of 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
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 “(3) Explanation ofConsolidated Financial Results Forecast and Other Forward-looking Information” under “1. Qualitative Information
on Quarterly Financial Results for the Period under Review” on page 4 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 ........ 4
2. Semi-annual Consolidated Financial Statements and Primary Notes ........................................................... 5(1) Semi-annual Consolidated Balance Sheets .............................................................................................. 5(2) Semi-annual Consolidated Statements of Income and Comprehensive Income ...................................... 7
Semi-annual Consolidated Statements of Income ...................................................................................... 7
Semi-annual Consolidated Statements of Comprehensive Income ............................................................ 8(3) Semi-annual Consolidated Statements of Cash Flows ............................................................................. 9(4) Notes to Semi-annual Consolidated Financial Statements ..................................................................... 10(Notes on going concern assumption) .................................................................................................... 10(Notes in the case of significant changes in shareholders’ equity) ......................................................... 10(Accounting policies adopted specially for the preparation of semi-annual consolidated financial statements)............................................................................................................................................................... 10(Segment information, etc.) .................................................................................................................... 111

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Japanese economy during the six months ended June 30, 2024 showed signs of recovery in corporate
production activities and capital expenditure, but consumer sentiment showed a lack of strength due to thedepreciation of the yen, high resource prices, and high commodity prices, resulting in sluggish performance inhousing investment and other areas. In overseas economies, the U.S. economy has performed steadily,
particularly in terms of consumer spending, but the global shipping environment remains in turmoil due toheightened geopolitical risks, posing one of the business risks for the Company.
Under these circumstances, for the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024),
the Group posted net sales of ¥35,225 million (up 14.1% year-on-year), operating profit of ¥4,835 million (up27.7% year-on-year), ordinary profit of ¥5,936 million (up 25.8% year-on-year), and profit attributable to ownersof parent of ¥4,032 million (up 25.5% year-on-year), showing year-on-year growth in all of the aforementioned
indicators.
Strong sales in overseas markets for our Chemicals operations combined with the depreciation of the yen,resulting in renewed record highs in terms of net sales, operating profit, ordinary profit, and profit attributable toowners of parent.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, exceeded those of the previous year due to expansion inoverseas markets. Sales of carbon disulfide for rayon and cellophane were also higher than the previous year due
to strong export sales. Sales of sodium sulfate for bath agents and detergents were down on the previous year,
due to sluggish demand.
(Organic chemicals)
Regarding chlorinated isocyanurates for disinfectants, sales exceeded those of the previous year in thedomestic market due to solid sales for household sanitary use and other purposes. In the U.S. market, sales
exceeded those of the previous year due to the progression of inventory adjustments in distribution and atightening of supply and demand.
(Fine chemicals)
Sales of electronic chemicals exceeded those of the previous year due to strong export sales of Glicoat-SMD, aheat-resistant soluble OSP (Organic Solderability Preservative) for printed wiring boards, owing to the bottoming
out of the semiconductor and electronics markets. Chemical adhesion process GliCAP also performed well due toan increase in the number of orders for use in server boards.
Sales of advanced & specialty chemicals exceeded those of the previous year owing to a recovery in the epoxy
resin curing agent (imidazoles) and resin modifier (glycoluril derivatives, etc.) markets and the resulting growthin export sales. As for sales of semiconductor process materials, we saw progress in customer evaluations and theacquisition of new prototype production orders.
As a result, net sales for the Chemicals operations segment were ¥25,242 million (up 21.2% year-on-year)
and segment profit was ¥4,090 million (up 41.1% year-on-year), with both up on the previous year.
2) Housing Materials operations
As housing-related demand has fallen amid the continued decline in the number of new housing starts,
particularly for owned houses, due to a surge in construction costs and other factors, we have poured our efforts
into expanding landscape exterior products for non-residential purposes, which is one of our strengths.
Nevertheless, sales were down on the previous year.
As a result, net sales for the Housing Materials operations segment were ¥9,458 million (down 1.2% year-onyear) and segment profit was ¥546 million (down 23.6% year-on-year).
2

Reference information[Overseas net sales]
Six months ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
Net sales(Million yen)Six months ended June 30, 2024
(from January 1, 2024 to June 30, 2024)

Overseas net sales toconsolidated net sales (%)

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

Asia

2,657

8.6

3,840

10.9

North America

7,464

24.2

9,659

27.4

Other regions

954

3.1

1,056

3.0

Total
Consolidated net
sales

11,07535.9

14,55541.3

30,88035,225(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets increased by ¥831 million from the end of the previous fiscal year to ¥131,878 million. Major
increases were ¥4,358 million in investment securities and ¥1,766 million in accounts receivable – trade, while
a major decrease was ¥5,820 million in cash and deposits.
Liabilities increased by ¥6,428 million from the end of the previous fiscal year to ¥50,606 million. Major
increases were ¥3,312 million in long-term borrowings, ¥2,217 million in current portion of long-termborrowings, and ¥1,500 million in short-term borrowings.
Net assets decreased by ¥5,596 million from the end of the previous fiscal year to ¥81,271 million. A major
increase was ¥959 million in valuation difference on available-for-sale securities, while a major decrease was¥6,886 million in retained earnings.
As a result, equity ratio fell to 61.1% from 65.7% at the end of the previous fiscal year.
(Status of cash flows)
Cash flows provided by operating activities totaled ¥3,114 million (a decrease of ¥2,895 million year-on-year).
Major cash inflows were profit before income taxes of ¥5,883 million and depreciation of ¥1,442 million, while
major cash outflows were income taxes paid of ¥2,564 million and increase in trade receivables of ¥1,454 million.
Cash flows used in investing activities totaled ¥19,309 million (an increase of ¥16,147 million year-on-year).
Major cash outflows were purchase of securities of ¥13,207 million, purchase of investment securities of ¥4,919
million and purchase of property, plant and equipment of ¥2,089 million.
Cash flows used in financing activities totaled ¥3,902 million (an increase of ¥2,088 million year-on-year). A
major cash inflow was proceeds from long-term borrowings of ¥8,600 million, while major cash outflows werepurchase of treasury shares of ¥10,221 million and repayments of long-term borrowings of ¥3,070 million.
As a result, cash and cash equivalents totaled ¥24,076 million (a decrease of ¥19,520 million from the end of
the previous fiscal year).

3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The full-year financial results forecast has been revised from the initial plan (announced on January 30, 2024) as
follows.
1. Revisions to the consolidated financial results forecast figures for the fiscal year ending December 31,
2024 (January 1, 2024 – December 31, 2024)

Previous forecast (A)64,000

Profitattributable
to Basic earnings
Ordinary profit
owners ofper share
parent
7,800
8,200
5,500
108.73

Revised forecast (B)68,000

8,200

9,500

7,900

Change (B - A)

4,000

400

1,300

2,400

Change rate (%)

6.3

5.1

15.9

43.6

Net sales

Operatingprofit171.54

2. Reasons for the revision
Net sales were revised upward due to the revision of assumed exchange rates to ¥150 to U.S. dollar and ¥160
to Euro (from the original plan of ¥140 to U.S. dollar and ¥150 to Euro), reflecting the depreciation of the yen,and to the better-than-expected progression of the Chemicals operations plan in the first half of the fiscal year.
On the other hand, operating profit is expected to benefit only partially from the effect of the depreciating yen
on the exchange rate, due to soaring prices of resources and various raw materials.
In addition, since foreign exchange gains are expected in non-operating income and gain on sale of investment
securities resulting from the sale of cross-shareholdings are expected in extraordinary income, ordinary profit
and profit attributable to owners of parent are also expected to exceed the initial plan.
(Note) The above financial results forecasts are based on information currently available to the Company
as of the date of this report. Actual results may differ significantly from these forecasts due to a wide
range of factors.

4

2. Semi-annual Consolidated Financial Statements and Primary Notes(1) Semi-annual Consolidated Balance Sheets(Million yen)
As of December 31, 2023
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 June 30, 2024

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

24,126468
3,331
15,67418,011
8,728
48
4,347
755
(3)
75,488

5,926
6,648
8,693
3,446
645
25,360
699

5,960
6,768
8,800
3,792
626
25,947625

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

26,202
2,056
549
1,008
(0)
29,81656,389131,878(Million yen)
As of December 31, 2023
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 June 30, 2024

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

8,654
612
5,030
8,000
1,628
1,938
190
1
374
2,987
29,416

12,906
2,191
998

16,219
2,614
998

64

65

591
370
43
317
17,48344,178

549
371
55
317
21,19050,606

6,867
5,711
66,077(226)
78,4306,867
5,711
59,190(238)
71,532

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

6,003
2,274
532
170
8,980
758
81,271
131,878

(2) Semi-annual Consolidated Statements of Income and Comprehensive Income
Semi-annual 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
Subsidy income
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

7

Six months
ended June 30, 2023
30,88019,137
11,742Six months
ended June 30, 2024
35,225
21,34913,875

2,788
467
1,181
75

3,266
515
1,338
64

5

9

867
2,568
7,955
3,786

839
3,005
9,040
4,835

103
271
554
35
964

148
241
737
16
1,143

17
10
3
31
4,720

28
10
4
42
5,936

－
32
32

0
－
0

52
－
52
4,700
1,482
3,217
4
3,212

5
47
53
5,883
1,802
4,081
48
4,032

Semi-annual 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

Six months
ended June 30, 2023
3,217

Six months
ended June 30, 2024
4,081

1,976
161
6
2,143
5,361

959
280
14
1,254
5,335

5,356

5,286

4

48

(3) Semi-annual Consolidated Statements of Cash Flows(Million yen)Six months
ended June 30, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
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
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 refund (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
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
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

Six months
ended June 30, 2024

4,700
1,623
(32)
15
(6)
(374)
17

–
–
52
134
86
(95)
57
(355)
5,823
375
(18)

–
(169)
6,010

9

5,883
1,442

–
(34)
(3)
(389)
28
47
(0)
5
(1,454)
456
(430)
(40)
(194)
5,317
389
(28)
0
(2,564)
3,114(3,000)3,000(2,358)(28)(13,207)

(81)

–

(706)

(4,919)

500

894

(488)
(3,162)

19(19,309)

1,000
3,000
(2,080)(3,039)(687)(6)(1,814)363
1,397
36,68338,0801,500
8,600(3,070)(10,221)(709)(0)(3,902)577(19,520)
43,597
24,076–(2,089)(5)

(4) Notes to Semi-annual Consolidated Financial Statements(Notes on going concern assumption)
There is no relevant information.
(Notes in the case of significant changes in shareholders’ equity)(Purchase of treasury shares)
The Company resolved on February 28, 2024 to purchase its treasury shares pursuant to the provisions of thearticles of incorporation, as set forth in Article 459, Paragraph 1 of the Companies Act, and purchased 5,891,100
shares of treasury shares. As a result, during the six months ended June 30, 2024, treasury shares increased by¥10,221 million.
(Cancellation of treasury shares)
The Company resolved on February 28, 2024 to cancel its treasury shares pursuant to the provisions in Article
178 of the Companies Act, and cancelled 5,891,100 shares of treasury shares on March 8, 2024. As a result, during
the six months ended June 30, 2024, retained earnings and treasury shares decreased by ¥10,209 million and ¥10,209
million, respectively.
(Accounting policies adopted specially for the preparation of semi-annual 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 six months ended June 30, 2024, and multiplies
profit before income taxes for the semi-annual period by the estimated effective tax rate.
Income taxes - deferred is included in income taxes.

10

(Segment information, etc.)
I. For the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)

Reportable segment

Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Inter-segment net sales ortransfers
Total

Other
(Note) 1

Amount recorded insemi-annual
Adjustment
consolidated(Note) 2
statements ofincome (Note) 3

Chemicals
operations

Housing
Materials
operations

6,785
9,796
4,249

—
—
—

6,785
9,796
4,249

—
—
—

6,785
9,796
4,249

—
—
—

6,785
9,796
4,249

—

633

633

—

633

—

633

—
—

8,937
—

8,937
—

—
465

8,937
465

—
—

8,937
465

20,8309,570

30,401465

30,866—30,866

—

—

—

13

13

—

13

20,8309,570

30,401478

30,880—30,880

3

1

5

150

155

(155)

—

20,834

9,572

30,406629

31,036(155)

30,880

Total

Total

Segment profit
2,898
715
3,614
56
3,671
115
3,786
(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 ¥115 million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the semi-annual consolidated statements of income.

11II. For the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)Amount recorded insemi-annual
Adjustment
consolidated(Note) 2
statements ofincome (Note) 3

Reportable segment

Net sales
Inorganic chemicals
Organic chemicals
Fine chemicals
Interior, exterior finishes
and paving materials
Exterior products
Other
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Inter-segment net sales ortransfers
Total

Other
(Note) 1

Chemicals
operations

Housing
Materials
operations

7,564
12,001
5,676

—
—
—

7,564
12,001
5,676

—
—
—

7,564
12,001
5,676

—
—
—

7,564
12,001
5,676

—

624

624

—

624

—

624

—
—

8,833
—

8,833
—

—
512

8,833
512

—
—

8,833
512

25,242

9,458

34,701

512

35,213—35,213

—

—

—

11

11

—

11

25,242

9,458

34,701523

35,225—35,225

2

1

3

144

148

(148)

—

25,2459,460

34,705668

35,373(148)

35,225

Total

Total

Segment profit
4,090
546
4,637
71
4,708
127
4,835
(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 ¥127 million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the semi-annual consolidated statements of income.

12