Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Results for the Second Quarter of Fiscal Year 2023 Ending March 31, 2024
<Under Japanese GAAP>
October 31, 2023

Company Name:
Stock Listings:
Code Number:
URL:
Representative Director:
Inquiries:

SEKISUI KASEI CO., LTD.
Tokyo Stock Exchange4228
https://www.sekisuikasei.com
Mr. Masato Kashiwabara, President
Mr. Katsumi Sasaki, Senior Managing Executive Officer
Head of Corporate Strategic Headquarters+81-3- 3347-9618
November 14, 2023
December 4, 2023
Yes
Yes (For securities analysts, institutional investor fund managers)

TEL:
Scheduled date for submission of quarterly financial statement:
Scheduled date for payment of dividends:
Quarterly earnings supplementary explanatory documents:
Quarterly earnings results briefing:(Figures rounded down to the nearest million yen)
1. Consolidated Business Results for the First Half (April 1, 2023 to September 30, 2023)(1) Consolidated Business Results(% figures represent changes from the same period of the previous year.)
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of the Parent
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

1st Half of FY 2023
64,996
6.7
338
1,168
459
1st Half of FY 2022
60,9172.5(312)
73(90.2)(345)
Note. Comprehensive Income: 1st Half of FY2023: (1,530) million yen [ - %] 1st Half of FY2022: 1,125 million yen [ - %]1st Half of FY 2023
1st Half of FY 2022

Net Income
Attributable to
Owners of the Parent
per Shareyen
10.15(7.65)-Net Income
Attributable to
Owners of the Parent
per Share (Diluted)
yen-(2) Consolidated Financial Position
Total Assets
Net Assets
Equity to Total Assets
Millions of yen
Millions of yen%
2nd Q of FY 2023
147,280
56,56837.9
FY 2022
145,175
58,464
39.8
Reference: Equity: 2nd Q of FY2023: 55,825 million yen FY2022: 57,723 million yen
Equity: Shareholders’ Equity including Accumulated Other Comprehensive Income
2. Dividend Status
Dividend per Share
(Date of Record)Year-end

Full year

At the end of 1st Q

At the end of 2nd Q

At the end of 3rd Q

yen
-

yen
3.00
3.00

yen
-

yen
9.00

yen
12.00

-

9.00

12.00

FY 2022
FY 2023
FY 2023 (outlook)
Note. Recent revision of dividend estimates: No

3. Consolidated Outlook for FY2023 (April 1, 2023 to March 31, 2024)(% figures represent changes from the same period of the previous year.)
Net Sales

Operating Income

Millions of yen%
Millions of yen%
Full Year
130,000
4.3
1,300
63.9
Note. Recent revision of consolidated earnings estimates: No

Ordinary Income
Millions of yen

1,700

-1-

%
141.3

Net Income
Attributable to
Owners of the Parent
Millions of yen

550

%
21.5

Net Income
Attributable to
Owners of the
Parent per Share

yen
12.15

SEKISUI KASEI CO., LTD. (4228) Consolidated Financial Results for the Second Quarter of Fiscal Year 2023 Ended March 31, 2024

Note:(1) Significant change of subsidiary companies during the term
(Change of specified subsidiaries that affected the scope of consolidated reporting): No(2) Application of special methods for quarterly consolidated financial statements: No(3) Changes to the accounting policy, changes or restatements of the accounting estimatesa) Changes caused by revisions to accounting principles: Nob) Changes other than a) : Noc) Amendments to accounting estimates : Nod) Restatements : No
(4) Number of shares outstanding (common stock)a) Number of shares outstanding at the end of term (including treasury stock):
2nd Q of FY2023
46,988,109 shares
FY2022
46,988,109 sharesb) Treasury stock at the end of term:
2nd Q of FY2023
1,614,133 shares
FY2022
1,714,425 sharesc) Average outstanding shares in the period (quarterly consolidated cumulative total):
1st Half of FY2023
45,316,666 shares
1st Half of FY2022
45,228,750 shares

Note: Execution chart for audit procedures
The Financial instruments and Exchange Law does not require this brief announcement of the most recent financial statements to be
subject to audit review.
Note: Remarks on appropriate use of forecasted resulted of operation and other special matters(Cautionary statement regarding forward-looking statements)
The earnings forecasts and other forward-looking statement presented in this report are based on information available at the time of its
issue and on certain assumption that the Group considers reasonable. Forward-looking statements in no capacity represent a guaranteethat the Group will achieve the stated amounts. Various factors can cause actual results to differ materially from the forecasts. For
important matters regarding the conditions associated with the assumptions of these forecasts and their appropriate use, please see “1.
Qualitative Information on Quarterly Financial Results, (4) Explanation of Consolidated Financial Results Forecasts and Other Forwardlooking Information” on page 4.

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Table of Contents
1. Qualitative Information on Quarterly Financial Results ........................................................................................... 2(1) Explanation of Operating Results......................................................................................................................... 2(2) Explanation of Financial Position ........................................................................................................................ 4(3) Explanation of Interim Dividend .......................................................................................................................... 4(4) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information ................... 4
2. Quarterly Consolidated Financial Statements and Principal Notes .......................................................................... 5(1) Quarterly Consolidated Balance Sheets ............................................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ....................................................... 7
Quarterly Consolidated Statements of Income
First Half, Fiscal Year 2023 ............................................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
First Half, Fiscal Year 2023 ............................................................................................................................... 8(3) Quarterly Consolidated Statements of Cash Flows .............................................................................................. 9(4) Notes to Quarterly Consolidated Financial Statements ...................................................................................... 10(Notes on going concern assumption) ................................................................................................................ 10(Notes in case of significant changes in shareholders’ equity) ........................................................................... 10(Segment information, etc.) ................................................................................................................................ 10-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the six months ended September 30, 2023, despite signs of recovery centered on personal consumption
following the easing of restrictions on behavior imposed as a result of novel coronavirus infectious disease (COVID19), the prolongation of the situation in Ukraine, rising inflationary pressure caused by soaring resource prices andlogistics costs, and concerns about the slowing of the Chinese economy led to continued uncertainty for the global
economy. In the automotive industry, the recovery of semiconductors and other automotive part supply chains has led
to a general trend of recovery, although there are variances in automotive production activity by region andmanufacturer. In the area of electronics, demand for television and monitor applications is on a recovery trend. On theother hand, although the reclassification as COVID-19 as a Class 5 infectious disease and the easing of restrictions onentering the country has led to a normalization of socio-economic activities and a moderate recovery trend in theJapanese economy, soaring resource prices and the impact of the weaker yen have led to continued uncertainty. In
addition, responses to environmental issues, such as reductions in greenhouse gas emissions and the problem of climatechange, are becoming increasingly important.
In Japan’s foam plastics industry, although there has been an increase in flows of people, food container-related demandhas been affected by high prices and other factors, and demand related to home meals and home-meal replacements isslowing. Conversely, demand for parts, transport materials and packaging materials is trending toward recovery.
Against this business environment, the Group has been working as one on the three Key Issues of the three-year
medium-term management plan, “Spiral-up 2024,” which was launched in the previous fiscal year. In terms of“Strengthen the earnings structure,” by selecting and concentrating management resources we are working to
restructure the business portfolio, implement bold innovations in production, and generate profits rapidly from newly
developed products. In terms of “Shift to businesses that solve environmental and social issues,” we have also
positioned “expanding Sustainable Star Product through recycling-based business” and “striving to achieve carbon
neutrality” as out issues, while further striving to strengthen the promotion of SKG-5R*. It is in this context that our“ESLEN Block RNW,” which is made from used, recovered, and recycled expanded polystyrene using technology
developed in-house, has been adopted for facilities at the Osaka, Kansai World Expo. Furthermore, in terms of“Reinforcing our management foundation,” we are taking steps to enhance our workplaces to enable each and every
employee to contribute their energy and enthusiasm, such as by joining the “IkuBoss Corporate Alliance” as one of theinitiatives in Materiality (our key management issues) related to human resources.
In terms of sales, in the Human Life Segment we worked to expand sales of Sustainable Star Product despite declining
demand, and in the Industry Segment we worked to capture recovering demand in various areas. In terms of profits, toimprove profitability we responded to soaring energy prices by reducing costs and cutting fixed expenses, as well as
passing on higher inputs to selling prices.
As a result, for the six months ended September 30, 2023, the Group posted net sales of ¥64,996 million (up 6.7% year
on year), operating income of ¥338 million (compared to an operating loss of ¥312 million in the same period of theprevious fiscal year), and ordinary income of ¥1,168 million (compared to an income of ¥73 million year on year).
After making adjustments to income taxes, this resulted in a net income attributable to owners of the parent of ¥459
million (compared to a net loss of ¥345 million for the same period the previous fiscal year).
* “SKG-5R” refers to SKG as SEKISUI KASEI Group, and 5R as Reduce, Reuse, Recycle, Replace, and Re-create.

The results for each segment are as follows.

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<Human Life Segment>
Net sales in the Human Life Segment reached ¥24,538 million (down 4.3% year on year), with a segment income of¥933 million (up 39.7% year on year).
The Food area was affected by the increase in prices of materials for food container applications, but demand related
to home meals and home-meal replacements was strong. In agricultural applications, the impact of poor crops andweather contributed to a lack of growth in shipments, and fishery remained weak due to the continuation of the trend
towards declining catches. Net sales increased due to price revisions, but results overall were lower year on year.
In the Housing/Energy field, we made progress in winning projects related to green roofs, but construction materials
and civil engineering were weak due to delays in the progress of construction projects and other factors.
Overall sales volume of “ESLEN Sheets” (foamed polystyrene sheets), our mainstay product, declined year on year
despite strong sales of containers for natto (a fermented bean product) due to weak demand in supermarket food tray
applications and trends in the instant noodle market. We also worked on the development of new foam sheets aimed atmaking lighter products for use in non-foam container applications. Sales volume of “ESLEN Beads” (expandable
polystyrene beads) recorded a year-on-year decline overall, with beads for cushions and other life goods posting adecline in shipments, and weakness being seen in demand related to fishery.
Profits increased due to efforts made to reduce costs and fixed expenses, pass higher inputs on to selling prices, and cut
costs associated with transfers of products.
<Industry Segment>
Net sales in the Industry segment reached ¥40,457 million (up 14.7% year on year), with a segment income of ¥1,049
million (compared to a loss of ¥342 million in the same period of the previous fiscal year).
In the Mobility field, despite the residual impact of parts shortages at some automakers in the earlier part of the first
half, sales of “PIOCELAN” (polystyrene/polyolefin hybrid resin foam) for automotive parts applications were strong
as a result of the recovery in automobile production volume. In parts packaging applications, there was a slowdown inpackaging applications for electrical components, which recorded significant growth in the previous fiscal year, leading
to a year-on-year decline in sales, but we made progress in winning new applications in the latter part of the first half,and overall sales were strong. FRP (fiber-reinforced plastic) parts and related materials for use in trucks and buses
performed well due to our success in capturing new demand. Production volume at Proseat Group in Europe isincreasing following a moderate recovery in the European automobile market. In this environment eat Group worked
to offset rising energy and personnel costs by improving productivity, cutting fixed costs, and passing on higher prices
to automakers, but it continues to lose money.
In the Electronics field, demand for “TECHPOLYMER” (polymer particles) used in light diffusion applications for
LCD panels, etc. recovered due to progress made by LCD panel manufacturers in correcting their inventories. In“PIOCELAN” used in panel transport materials and packaging materials applications, a recovery in demand led tostrength in Taiwan but the weakness in domestic consumption in China led to a delay in the recovery of demand, which
was flat year on year.
In the Medical/Healthcare field, “ELASTIL” (thermoplastic elastomer foam) used in midsoles for running shoes was
weak due to delays in the launch of new models. Following the recovery in demand for medical examinations, sales of“ST-gel” (functional high-polymer gel) were strong in such areas as medical electrodes, but sales to China decreased.
In terms of profits, the segment returned to the black as a result of the trend towards demand recovery in the Electronics
field and higher automotive production volume in the Mobility field, improvements in productivity, reductions in fixed
costs, and the passing-on of higher input prices, amongst other efforts.
-3-

(2) Explanation of Financial Position
At the end of the second quarter under review, total assets had increased by ¥2,105 million to ¥147,280 million. In
assets, increases in notes and accounts receivable - trade resulted in current assets rising by ¥3,361 million. Non-current
assets decreased by ¥1,255 million due mainly to a decrease in the valuation of investments in securities.
In liabilities, current liabilities rose by ¥5,448 million as a result of increases in short-term loans and other items.
Conversely, mainly as a result of a decrease in long-term loans, long-term liabilities decreased by ¥1,447 million. Net
assets decreased by ¥1,895 million to ¥56,568 million, due mainly to decline in items such as net unrealized holding
gain on securities. As a result, the equity ratio was 37.9%.
As for cash flows for the six months ended September 30, 2023, cash flows from operating activities saw proceeds
increase by ¥898 million year on year, resulting in ¥1,251 million in net cash provided by operating activities, due
mainly to the increase in income before income taxes. Due mainly to the decline in proceeds from sales of investments
in securities that was recorded in the same period of the previous fiscal year, net cash used in investing activities
increased by ¥881 million to ¥1,541 million. Cash inflows associated with financing activities decreased by ¥1,425
million year on year, resulting in ¥1,298 million in net cash used in financing activities, due mainly to decreases inproceeds from long-term loans. As a result, the balance of cash and cash equivalents as of September 30, 2023 decreasedby ¥1,457 million from the end of the previous fiscal year to ¥9,615 million.
(3) Explanation of Interim Dividend
We have traditionally considered the return of profits to shareholders an important management issue. The situation
remains challenging, but with the emphasis on a stable dividend, we will pay a dividend of 3 yen per share in line with
our initial announcement.
(4) Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Information
Consolidated earnings forecasts for the full year of the fiscal year ending March 31, 2024 are unchanged from thefigures announced on October 27, 2023.

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2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process goods
Raw materials and supplies
Other current assets
Less allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other intangible assets
Total intangible assets
Investments and other assets
Investments in securities
Assets for retirement benefits
Other assets
Less allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of September 30, 2023

11,08028,388
7,930
9,253
1,909
5,127
3,227
(42)
66,874

9,622
31,742
8,735
9,030
2,802
5,050
3,292
(41)
70,23514,804
12,753
21,493
4,653
53,702

14,551
12,97921,605
5,123
54,259

1,763
1,763

1,834
1,834

14,041
6,936
1,905
(47)
22,83478,301
145,175

12,201
7,005
1,791
(47)
20,951
77,045147,280

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans
Accrued income taxes
Provision for bonuses to employees
Provision for bonuses to directors and audit and supervisoryboard members
Other current liabilities
Total current liabilities
Long-term liabilities
Bond
Long-term loans
Liabilities for retirement benefits
Provision for product warranty
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized holding gain on securities
Surplus arising from land revaluation
Translation adjustments
Retirement benefits liability adjustments
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of September 30, 2023

17,026
8,263
13,0261,338
1,010

18,873
7,834
15,434
757
1,016

42

31

7,388
48,096

9,597
53,5457,000
18,094
3,728
82
9,710
38,61486,711

7,000
16,789
3,874
67
9,436
37,16790,712

16,533
16,445
16,602(1,382)
48,19916,533
16,40816,655(1,301)
48,295

7,440
1,479
562
41
9,524
740
58,464145,175

6,163
1,479
(136)
23
7,529
743
56,568147,280

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
First Half, Fiscal Year 2023
First Half, FY2022(From April 1,2022
to September 30, 2022)
60,91749,441
11,475
11,788(312)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Subsidy income
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Loss on sales or disposal of equipment
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investments in securities
Total extraordinary income
Net income before income taxes
Income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of the parent-7-(Millions of yen)First Half, FY2023(From April 1,2023
to September 30, 2023)
64,99651,906
13,09012,751
338

9
204
411
22
98
746

31
174
665
185
275
1,332

225
14
121
360
73

369
32
99
501
1,168

227
227
301
644
(343)
2
(345)

1,168
704
464
4
459

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

Net income (loss)
Other comprehensive (loss) income
Net unrealized holding gain on securities
Translation adjustments
Retirement benefits liability adjustments
Total other comprehensive (loss) income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests-8-First Half, FY2022(From April 1,2022
to September 30, 2022)(343)

First Half, FY2023(From April 1,2023
to September 30, 2023)
464

1,110
405
(46)
1,468
(1,125)(1,276)(699)(18)(1,994)(1,530)1,123
2(1,534)4

(3) Quarterly Consolidated Statements of Cash FlowsFirst Half, FY2022(From April 1,2022
to September 30, 2022)
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expense
Increase (decrease) in provision for bonuses to employees
Increase (decrease) in provision for product warranty
Changes in assets and liabilities for retirement benefits, net(Gain) loss on sales of investments in securities(Gain) loss on sales or disposal of equipment, net
Subsidy income(Increase) decrease in notes and accounts receivable(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from casualty insurance claims
Proceeds from subsidy income
Income taxes
Net cash used in operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of investments in securities
Proceeds from sales of investments in securities
Increase in short-term and long-term loans receivableCollection of short-term and long-term loans receivable
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase in short-term loans
Proceeds from long-term loans
Repayment of long-term loans
Dividends paid
Dividends paid to non-controlling shareholders
Other, net
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period-9-(Millions of yen)First Half, FY2023(From April 1,2023
to September 30, 2023)

301
2,800
(24)
(213)
225
(63)
(11)
(106)
(227)
12
(22)
(543)
(872)
714
(1,138)
828
213
(214)
122
22
(618)
352

1,168
2,826
(2)
(205)
369
4
(14)
22
29
(185)
(3,334)
1
699
181
1,560
206
(335)
856
185
(1,223)
1,251(1,141)
65
(2)
425
(1)
0
(6)
(660)

(1,409)
12
(2)
(6)
10
(146)
(1,541)

511
5,307(4,904)
(316)
(1)
(468)
127
112
(68)
10,503
10,434

1,954
1,500(3,860)
(407)
(1)
(482)
(1,298)131(1,457)
11,072
9,615

(4) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
Not applicable.
(Segment information, etc.)(Segment information)
I. First Half, Fiscal Year 2022 (from April 1, 2022 to September 30, 2022)
1. Information on net sales and income (loss) by reportable segment, and information on disaggregation of revenue

Reportable segments
Human Life

Industry

Total

Adjustments(Note 1)

(Millions of yen)Amounts recorded in
the Quarterly
Consolidated
Statements of Income(Note 2)

Net salesJapan
25,567
10,546
36,11336,113
Europe16,01416,01416,014
Asia
77
6,929
7,006
7,006
Other
0
1,783
1,783
1,783
Revenue from contracts with
25,64435,27360,91760,917
customers
Other revenue
Net sales to third parties
25,64435,27360,91760,917
Inter-segment net sales or
286
74
360
(360)
transfers
Total
25,93035,347
61,278(360)
60,917
Segment income (loss)
667
(342)
325
(251)
73
Notes: 1. Adjustments were as follows:
Adjustments for segment income (loss) of ¥ (251) million consisted of inter-segment eliminations of ¥ (1) million and corporate
expenses not allocated to reportable segments of ¥ (250) million.
2. Segment income (loss) was adjusted for ordinary income in the Quarterly Consolidated Statements of Income.
3. Major products in each segment- Human Life Segment:
ESLEN Beads, ESLEN Sheet, ESLEN Wood, INTERFOAM, other foamed/molded products, ES Dan Mat,ESLEN Block, etc.
- Industry Segment:
PIOCELAN, LIGHTLON, NEOMICROLEN, CELPET, TECHPOLYMER, ST-gel, TECHEATER, ELASTIL,
FOAMAC, ST-LAYER, ST-Eleveat, other foamed/molded products, etc.

- 10 -

II. For Half, Fiscal Year 2023 (from April 1, 2023 to September 30, 2023)
1.Information on net sales and income (loss) by reportable segment, and information on disaggregation of revenue

Reportable segments
Human Life

Industry

Total

Adjustments(Note 1)

(Millions of yen)Amounts recorded in
the Quarterly
Consolidated
Statements of Income(Note 2)

Net salesJapan
24,515
12,52037,03637,036
Europe19,778
19,778
19,778
Asia
22
5,931
5,954
5,954
Other
2,227
2,227
2,227
Revenue from contracts with
24,53840,45764,99664,996customers
Other revenue
Net sales to third parties
24,53840,45764,99664,996
Inter-segment net sales or
306
57
364
(364)
transfers
Total
24,84540,51465,360(364)
64,996
Segment income (loss)
933
1,049
1,982
(813)
1,168
Notes: 1. Adjustments were as follows:
Adjustments for segment income (loss) of ¥ (813) million consisted of inter-segment eliminations of ¥ 0 million and corporate
expenses not allocated to reportable segments of ¥ (814) million.
2. Segment income (loss) was adjusted for ordinary loss in the Quarterly Consolidated Statements of Income.
3. Major products in each segment- Human Life Segment:
ESLEN Beads, ESLEN Sheet, ESLEN Wood, INTERFOAM, other foamed/molded products, ES Dan Mat,ESLEN Block, etc.
- Industry Segment:
PIOCELAN, LIGHTLON, NEOMICROLEN, CELPET, TECHPOLYMER, ST-gel, TECHEATER, ELASTIL,
FOAMAC, ST-LAYER, ST-Eleveat, other foamed/molded products, etc.

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