Note:

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

Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
<Under Japanese GAAP>
April 30, 2024
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
June 21, 2024
June 24, 2024
June 24, 2024
Yes
Yes (For securities analysts and institutional investor fund managers)

Company Name:
Listing:
Securities code:
URL:
Representative:
Inquiries:
TEL:
Scheduled date of annual general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:(Figures rounded down to the nearest million yen)
1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results(% figures represent changes from the previous year.)
Net income
Net sales
Operating income
Ordinary income
attributable toowners of parent
Fiscal year ended
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen%
March 31, 2024
130,265
4.5
1,261
59.0
2,733
288.1
1,083
139.4
March 31, 2023
124,683
6.1
793
-45.8
704
-49.7
452
Note: Comprehensive Income
For the fiscal year ended March 31, 2024: (1,141) million yen (- %)For the fiscal year ended March 31, 2023:642) million yen (- %)Net income
attributable toowners of parent
per shareyen

Net income
attributable toowners of parent
per share (Diluted)yen

Ratio of ordinary
income tototal assets

Return on equity

Fiscal year ended
March 31, 2024
23.90
March 31, 2023
10.00
Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2024:
For the fiscal year ended March 31, 2023:%

Ratio of operating
income to net sales

%

1.9
0.8

%

1.9
0.5

1.0
0.6

-) million yen-) million yen(2) Consolidated financial position
Total assets

Net assets

Millions of yen

As of March 31, 2024
As of March 31, 2023
Reference: Equity

146,473
145,175
As of March 31, 2024:

Equity to asset ratio

Millions of yen

56,821
58,46456,060 million yen

Net assets per share%

38.3
1,235.52
39.8
1,275.00
As of March 31, 2023: 57,723 million yen

Yen(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Millions of yen

Millions of yen

7,375
3,110

(3,779)(993)

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen(3,658)(1,542)

10,867
11,072

2. Dividend Status(Date of Record)
Fiscal year ended
March 31, 2023
March 31, 2024
March 31, 2024
(Forecast)

Annual dividends per share
At the end
Fiscalof 2nd Q
of 3rd Q
year-end

At the end

At the end

-

3.00
3.00

-

9.00
10.00

12.00
13.00

-

3.00

-

10.00

13.00

of 1st Q
yen

yen

yen

yen

3. Consolidated Outlook for Fiscal 2024 (April 1, 2024-March 31, 2025)

Net sales

1st Half
Full Year

Operating income

Millions of yen%

Millions of yen

66,000132,000

1.5
1.3

800
2,500

Total
yen

Total cash
dividends(Total)Millions of yen%

Ratio of dividends

to net assets(Consolidated)

%

543
589

120.0
54.4

%

0.9
1.0

69.4

(% figures represent changes from the same period of the previous year.)
Net income
attributable toowners of parent
per share

Net income
attributable toowners of parent

Ordinary income

136.5
98.2

Payout Ratio(Consolidated)

Millions of yen%

Millions of yen

%

700
2,200

-40.1
-19.5

200
850

-56.5
-21.6

yen

4.41
18.73

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

Note:(1) Changes in significant subsidiaries during the period(change of specified subsidiaries resulting in the change in scope of consolidation):

None(2) Changes in the accounting policy, changes in accounting estimates, and restatementa) Changes in accounting policies due to revisions to accounting standards and other regulations:b) Changes other than a) :c) Changes in accounting estimates:d) Restatements:

None
None
None
None

(3) Number of shares outstanding (common shares)a) Number of shares issued at the end of the period (including treasury shares)
As of March 31, 2024 46,988,109 shares
As of March 31, 2023 46,988,109 sharesb) Number of treasury shares at end of the period
As of March 31, 2024 1,614,299 shares
As of March 31, 2023 1,714,425 sharesc) Average number of outstanding shares during the period (cumulative from the beginning of the fiscal year)
Fiscal year ended March 31, 2024 45,343,080 sharesFiscal year ended March 31, 2023 45,250,078 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Non-Consolidated Operating Results(% figures represent changes from the previous year.)Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Millions of yen
63,681
66,849Operating income
%
-4.7
6.3

Net income
per Share
Fiscal year ended
March 31, 2024
March 31, 2023

yen
(22.57)
6.19

Millions of yen
408
2,380

%
-82.8
-23.4

Ordinary income
Millions of yen
(325)
86

%
-98.0

Net income
Millions of yen(1,023)279%-

Net income per Share(Diluted)yen-(2) Non-Consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023
Reference: Equity:

Net assets

Millions of yen
Millions of yen
120,710
48,779122,150
50,849As of March 31, 2024: 48,779million yen

Equityto asset ratio

Net assets
per share%
40.4
1,075.05
41.6
1,123.17
As of March 31, 2023: 50,849million yenyen

Note: Financial results reports are exempt from audit conducted by certified public accountants or audit corporation.
Note: Proper use of earning forecasts, and other special matters(Cautionary statement regarding forward-looking statements)
The earnings forecasts and other forward-looking statements contained in this report are based on information available as of the date of thisreport and on certain assumptions that the Group believes are reasonable.
Forward-looking statements are not guarantees that the Group will achieve the amounts indicated. Various factors can cause actual results todiffer materially from those projected.
For important matters regarding the conditions associated with the assumptions of these forecasts and their appropriate use, please see “1.
Summary of Business Results, (3) Outlook” on page 7.

Table of Contents
1. Summary of Business Results ........................................................................................................................... 2(1) Summary of Business Results for FY2023 ................................................................................................... 2(2) Summary of Financial Position for FY2023 ................................................................................................. 6(3) Outlook ......................................................................................................................................................... 7
2. Management Policy........................................................................................................................................... 8
Medium- to Long-term Management Strategy, Targets for Management Indices ........................................ 8
3. Basic Approach to the Selection of Accounting Standards............................................................................... 9
4. Consolidated Financial Statements and Notes to Consolidated Financial Statement ..................................... 10(1) Consolidated Balance Sheets ...................................................................................................................... 10(2) Consolidated Statement of Income and Statement of Comprehensive Income .......................................... 12(3) Consolidated Statement of Income ............................................................................................................. 12(3) Consolidated Statement of Comprehensive Income ................................................................................... 13(3) Consolidated Statement of Changes in Net Assets ..................................................................................... 14(4) Consolidated Statement of Cash Flows ...................................................................................................... 16(5) Notes to Consolidated Financial Statements............................................................................................... 17(3) Notes regarding assumption of going concern............................................................................................ 17(3) Significant matters that serve as the basis of preparation of consolidated financial statement .................. 17(3) Segment Information, etc. ........................................................................................................................... 17(3) Per share information .................................................................................................................................. 21(3) Subsequent events ....................................................................................................................................... 211

1.

Summary of Business Results(1) Summary of Business Results for FY2023
1) Business Results for FY2023
During the fiscal year under review, the outlook for the global economy remained uncertain due toconcerns about the economic slowdown arising from such factors as the progression of inflation,monetary tightening, and the unstable international situation. In the automotive industry,
automotive production is generally trending toward recovery despite variances by region andmanufacturer. In the area of electronics, demand for television and monitor applications appears tohave bottomed and signs of a recovery are becoming visible. On the other hand, although there has
been a progressive 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 climate change, are becoming increasingly important.
In Japan’s foam plastics industry, although there has been an increase in flows of people, foodcontainer-related demand has been affected by high prices and other factors, the recovery inpersonal consumption is stalling, and demand related to home meals and home-meal replacements
is slowing. Conversely, demand for parts, transport materials, and packaging materials is trending
toward recovery.
In this business environment, the Group has been working as one on the three Key Issues of thethree-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 boldinnovations in production, and generate profits rapidly from newly developed products. In termsof “Shift to businesses that solve environmental and social issues,” we have also positioned“expanding Sustainable Star Product (our environmentally friend product brand) throughrecycling-based business” and “striving to achieve carbon neutrality” as key issues, while striving
to further strengthen SKG-5R activities. As an initiative to broaden the adoption of closed-loop
recycling, a demonstration project aimed at mass production of ESLEN Beads RNW (an expanded
polystyrene bead that uses recycled raw material) was selected for the Ministry of theEnvironment’s Demonstration Project for a Plastic Resource Circulation System, which is part ofthe 2023 Demonstration Project for a Circular Economy System toward a Decarbonized Society.
In the environmental area, we were certified by the Ministry of Environment as an environmentallyadvanced Eco-First Company, which is an organization engaged in unique and industry-leading
environmental activities. Going forward we will continue to contribute to the realization of arecycling-based and sustainable society. In terms of “Reinforce our management foundations,”
with the objective of promoting respect for human rights initiatives, we set out SEKISUI KASEIGroup Human Rights Policy, based on the Guiding Principles on Business and Human Rights
adopted by the United Nations Human Rights Council in June 2011. We will continue to implement
initiatives aimed at resolving social, economic, and environmental issues, and work to enhance
corporate value.
In terms of sales, in the Human Life Segment we made efforts to expand sales of Sustainable Star
Product, but fishery-related demand was weak, resulting in a year-on-year decline. On the other
hand, in the Industry Segment we promoted efforts to capture the recovery in demand, leading to2

year-on-year growth and to an increase in revenue overall.
In terms of profits, to improve profitability we responded to soaring energy prices by reducing
costs and cutting fixed expenses, as well as revising selling prices.
As a result of the above factors, consolidated net sales for the fiscal year under review came to¥130,265 million (up 4.5% year on year), with operating income of ¥1,261 million (up 59.0% year
on year), and ordinary income, including foreign exchange gains caused by the ongoing
depreciation of the yen, of ¥2,733 million (up 288.1% year on year). Moreover, after recording
extraordinary income of ¥208 million derived from partial sales of investment securities, anddeducting an extraordinary loss of ¥318 million, which includes one-off losses such as impairmentsof non-current assets at a consolidated subsidiary, net income attributable to owners of the parent
was ¥1,083 million (up 139.4% year on year).
* The “SKG” in “SKG-5R” represents SEKISUI KASEI Group, and the “5R” stands for Reduce, Reuse, Recycle, Replace and Re-create.

2) Summary by Business Segment<Human Life Segment>
Net sales in the Human Life Segment reached ¥49,103 million (down 6.7% year on year), with asegment income of ¥1,787 million (down 30.9% year on year).
The Food field was affected by increases in prices of food ingredient, and demand was sluggish.
In agricultural applications, the impact of the weather led to poor crops and a lack of growth inshipments, 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
performance was sluggish due to weak construction materials, delays in the progress ofconstruction projects in civil engineering, and other factors.
Sales volume of “ESLEN Sheets” (foamed polystyrene sheets), our mainstay product, grew partly
due to our success in capturing new demand for the “ESLEN Sheet PZ series,” which we recently
developed in partnership with FP Corporation as a new material that enables reduction of plastic
usage. On the other hand, although sales of containers for natto (a fermented bean product) werestrong, demand for supermarket fresh food tray applications was weak, and the slump in demandfor instant noodle applications continued, leading to overall sales declining year on year. Sales
volume of ESLEN Beads (expandable polystyrene beads) recorded a year-on-year decline overall,due to continued weak demand in the areas of fishery and agriculture, lower demand for beads
used in cushions and other life goods, and the impact of delays in the progress of construction
projects in civil engineering applications.
In terms of profits, we made every effort to reduce costs and fixed expenses, pass on higher inputs
on to selling prices and cut costs associated with transfers of products, but the fall in sales volume
resulted in lower profits.
<Industry Segment>
Net sales in the Industry Segment reached ¥81,161 million (up 12.6% year on year), with a segment
3

income of ¥2,363 million (compared to a loss of ¥400 million for the previous fiscal year).
In the Mobility field, sales of “PIOCELAN” (polystyrene/polyolefin hybrid resin foam) werestrong. By application, although automotive parts were affected by lower automobile production
arising from parts shortages in the first half of the fiscal year, the impact of the Noto Peninsula
earthquake in the second half, and other factors, for the full year the recovery in automobile
production volume resulted in firm demand. In parts packaging applications, demand for electronic
components packaging applications, which experienced considerable growth in the previous year,
recorded a significant year-on-year decline due to slowing demand, but our “PIOCELAN RNW,”
which has been adopted by Toyota Motor Corporation as a returnable material for use in electricalcomponent logistics applications, continued to make progress in the market. On the other hand,
FRP parts and related material used in trucks and buses performed well due to our success in
capturing new demand. Production volume at the Proseat Group increased due to a moderate
recovery in the European automobile market, and the group made efforts to improve productivity,
cut fixed costs, and pass on higher prices to automakers to offset rising energy prices and personnel
costs, but although performance recovered significantly the losses continued.
In the Electronics field, “TECHPOLYMER” (polymer particles) recorded strong sales in relation
to light diffusion applications for LCD panels, etc. due to the end of inventory corrections at LCD
panel manufacturers. Although “PIOCELAN” for use in LCD panel transportation material
applications saw a recovery in Taiwan, demand in China recorded a year-on-year decline.
In the Medical/Healthcare field, full-year sales of “ELASTIL” (thermoplastic elastomer foam)
declined year on year, as growth in sales in training shoes in the second half of the fiscal year was
not enough to offset slowing demand for protective sneakers, which recorded significant growth in
the previous fiscal year. “ST-gel” (functional high-polymer gel) saw strength in medical
applications such as electrodes, driven by a recovery in demand for screening, but demand was
sluggish in pads for low-frequency therapy equipment and other health applications, and failed topick up.
In terms of profits, the segment returned to the black as a result of the trend towards demand
recovery in the Electronics field and the ongoing recovery in automotive production volume in the
Mobility field, combined with improvements in productivity, reductions in fixed costs, and thepassing-on of higher input prices, among other efforts.
3) Other Important Items<Global Expansion>
SEKISUI KASEI Group is moving to expand its business globally, primarily in the Industry
Segment including Mobility and Electronics. With the move towards carbon neutrality by 2050
progressing around the world, in the Mobility field, consumers are expected to increasingly
consider and adopt next-generation vehicles, and the market for the Group’s foam plastic products,
which contribute to greater functionality, is expected to expand.
The Group is moving to expand globally to address demand for parts and packaging materials thatuse foam plastics, which contribute to the weight-reduction efforts that will become increasingly
important in the Mobility field going forward. It is working to grow the parts and packaging
materials business in North America, which includes the United States and Mexico, and in Asian
4

countries such as China, Thailand, and Indonesia. In February 2019 the Group also acquired
European auto parts manufacturer Proseat Group as a stepping stone towards expanding thebusiness in Europe, and is building a structure to allow it to respond quickly to the shift towards
next-generation vehicles that originated in Europe. In order to recover from the deterioration in
performance that has occurred since the acquisition, we are putting in place a stronger foundation
for business by withdrawing from unprofitable operations and restructuring the organization, andworking to develop products and expand the customer base in order to grow the European business.
In fields such as Electronics and Medical/Healthcare, we will develop new materials with reduced
environmental impacts, including foam plastics and polymer particles based on new technology,
ReNew+, and BIO Cellular, and strive to achieve efficient production and to increase sales of theseproducts. Note that overseas sales for the consolidated fiscal year under review came to ¥55,556
million (42.6% of consolidated net sales).
<Sustainability Initiatives>
Based on the Sustainability Policy of “SEKISUI KASEI Group is committed to fulfilling our social
responsibility to all stakeholders, including the global environment, by carrying out ourmanagement philosophy. We strive to contribute to the sustainable development of society globallyand to enhance the sustainable corporate value,” we are engaging in sustainability activities
founded on the three themes of “manufacturing with consideration for the environment, safety andquality,” “sincere management activities focusing on compliance” and “practice of Zen-in Keiei.*”With regard to the environment, since its founding, the Group has advanced its foaming andpolymerization technologies while taking on the challenges of conducting monozukuri(manufacturing craftsmanship) and innovative business activities in harmony with the environment,
including energy conservation and recycling, with the aim of creating a low-carbon and recyclingbased society. In May 2022, the Group endorsed the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD), and we disclosed information in accordance with
the TCFD’s recommendations for the second time in February 2024. We also became the third
company to acquire certification for voluntary recovery and resource circulation project plans
based on the Act on Promotion of Resource Circulation for Plastics, and has begun a voluntary
recovery and resource circulation project for expanded polystyrene. Going forward, we willcontinue to contribute to achieving a sustainable society through our business activities.
With regard to compliance, rather than restricting ourselves to the perspective of conformance withlaws and regulations, we are working on a general and wide-ranging strengthening of governance,
including taking measures to enhance the effectiveness of the Board of Directors, and rebuilding
the committee structure of the Company.
In terms of “practice of Zen-in Keiei,” we are concentrating on promoting health and productivity
management, workstyle reforms and diversity (promoting the participation and advancement of
women in the workplace, nurturing global managers, etc.) as human capital management initiatives.
We are also reforming personnel systems with a focus on individual career formation andimproving motivation, and with the aim of building frameworks that ensure that employees withenthusiasm and ability can participate. We have also identified materiality (important management
issues) from the perspective of the environment, society, and government, have established issues
to promote and KPIs for each, and are strengthening initiatives to resolve them. In the external
assessments of the Nikkei SDGs Management Survey and the Nikkei Smart Work Management
5

Survey, we have been awarded three stars in each survey for five consecutive years, and will
promote ESG management further in order to achieve sustainable growth.
*Zen-in Keiei is our group culture we value that each individual of SEKISUI KASEI Group fully recognize the aim of the entire Group andachieves goals by joining forces as a team and cooperate each other while optimizing personally and strength of individuals, and what leads togreater achievement of the entire Group.

(2) Summary of Financial Position for FY2023
1) Assets, Liabilities and Net Assets
At the end of the consolidated fiscal year under review, assets totaled ¥146,473 million (an increaseof ¥1,298 million from the end of the previous year).
In assets, increases in items such as electronically recorded monetary claims-operating resulted incurrent assets rising by ¥2,236 million. Non-current assets decreased by ¥937 million due to salesof investments in securities.
In liabilities, current liabilities rose by ¥4,874 million as a result of increases in notes and accounts
payable-trade, and contract liabilities-operating. Conversely, mainly as a result of the repaymentof long-term loans, long-term liabilities decreased by ¥1,933 million.
Net assets decreased by ¥1,642 million. Equity, which is net assets after deducting non-controllinginterests, came to ¥56,060 million, and the equity ratio was 38.3%.
2) Cash FlowsThe balance of cash and cash equivalents (hereafter “net cash”) at the end of the consolidated fiscal
year under review decreased by ¥205 million compared to the end of the previous fiscal year, to¥10,867 million.
<Cash flows from operating activities>
Cash flow from operating activities saw increase by ¥4,264 million, resulting in ¥7,375 million in
net cash provided in operating activities, due mainly to the increase in operating income.
<Cash flows from investing activities>
Cash flow from investing activities saw decrease by ¥2,785 million, resulting in ¥3,779 million in
net cash used in investing activities, due to decreases in proceeds from sales of investments insecurities.
<Cash flows from financing activities>
Cash flow from financing activities saw decrease by ¥2,115 million, resulting in ¥3,658 million in
net cash used in financing activities was, due to the decline in proceeds from long-term loans.

6

(Reference) Change in cash flow-related indices
FY2019FY2020

FY2021

FY2022

FY2023Equity ratio (%)

44.1

44.2

40.1

39.8

38.3

Equity ratio on a market value basis (%)

17.6

17.7

13.8

13.0

15.7

Interest-bearing debt to cash flow ratio

5.5

5.8

10.9

13.6

5.7

Interest coverage ratio

15.0

17.1

10.7

6.8

7.7

(Notes)Equity ratio: Shareholders’ equity/Total assets
Equity ratio on a market value basis: Market capitalization/Total assets
Interest-bearing debt to cash flow ratio: Interest-bearing debt/cash flow
Interest coverage ratio: Cash flow/interest payments*All figures are calculated on a consolidated basis.
*Market capitalization is calculated based on the number of shares outstanding excluding treasury stock.
*Interest-bearing debt includes all debt in the consolidated balance sheet for which interest is paid.

(3) Outlook
With regard to the outlook going forward, in addition to concerns about an economic slowdown
caused by such factors as monetary tightening and the unstable international situation, the impact
of exchange rate volatility and of fluctuations in prices for raw materials and energy will require
careful attention.
In the Human Life Segment, we anticipate rising demand for recreation and tourism-relatedmaterials as a result of a recovery in inbound tourism, but the recovery in personal consumption isstalling due to high prices and other factors, and demand for home meals and home-meal
replacements in the form of supermarket food trays and restaurant take-out containers is expected
to slow. In the Industry Segment, although there are concerns in the Mobility field about thedeterioration of the supply chain as a result of the situation in Ukraine and geopolitical risks, we
expect parts applications and parts packaging applications to trend toward recovery on the whole,
despite disparities between region and manufacturer. In the Electronics field, we expect LCDrelated demand as a whole to continue to recover.
As a result, for the fiscal year ending March 31, 2025, we forecast consolidated net sales of ¥132.0
billion, operating income of ¥2.5 billion, ordinary income of ¥2.2 billion and net income
attributable to owners of the parent of ¥0.8 billion.

7

2.

Management Policy
Medium- to Long-term Management Strategy, Targets for Management Indices
SEKISUI KASEI Group has created a new “Spiral-up 2024” medium-term management plan,
which began in April 2022. In accordance with the <Basic Policy> below, all our members havebeen participating in this plan, with their efforts centered on <Key Issues>.
(1) Basic Policy
To contribute to a sustainable society, and to achieve the sustainable enhancement of ourcorporate value, we will establish a resilient earnings base based on ESG management.
(2) Key Issues(i) Strengthen the earnings structure1) Restructuring the business portfolio(5 priority fields)“Food,” “Electronics,” “Mobility,” “Medical/Healthcare,” “Housing/Energy”
2) Constructing a highly profitable structure in Proseat business
3) Strengthening cost competitiveness through innovations in production4) Rapidly generating profits from developed products(ii) Shift to businesses that solve environmental and social issues
1) Expanding Sustainable Star Products through recycling business
2) Striving to achieve carbon neutrality(iii) Reinforce our management foundations
1) Strengthening efforts to address materiality (key management issues)2) Enhancing financial health(3) Quantitative targets
We took into consideration the future forecast of the market and the most recent businessconditions in each segment, etc., in response to the issues facing the Group. We have also
partially revised the plan for FY2024 as follows.
Consolidated targets
Net Sales(Previous forecast plan)
Operating income(Previous forecast plan)
Ordinary Income(Previous forecast plan)
Net income attributable to owners of the parent(Previous forecast plan)

FY2021(results)¥117.5 billion

FY2022(results)¥124.6 billion

FY2023(results)¥130.2 billion¥1.4 billion¥0.7 billion¥1.2 billion

FY2024(plan)¥132,0 billion(¥135.0 billion)¥2.5 billion(¥4.0 billion)¥1.4 billion¥0.7 billion¥2.7 billion¥2.2 billion(¥3.7 billion)¥(5.9) billion¥0.4 billion¥1.0 billion¥0.8 billion(¥2.4 billion)－

ROE(Previous forecast plan)

0.8%

1.9%

1.5%
(3.0%)(Amounts of less than ¥100 million are not shown)8

3.

Basic Approach to the Selection of Accounting Standards
Taking into account comparability between reporting periods and between companies in its
consolidated financial statements, for the time being the Group’s policy is to prepare its
consolidated financial statements based on Japanese GAAP. With regards to the application ofinternational financial reporting standards (IFRS), the Group will respond appropriately, taking
into account various conditions both domestically and overseas.

9

4.

Consolidated Financial Statements and Notes to Consolidated Financial Statement(1) Consolidated Balance Sheets
FY2022As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable
Accounts receivable
Contract assets
Electronically recorded monetary claims-operating

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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investments in securities
Deferred income taxes
Assets for retirement benefits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10(Millions of Yen)FY2023As of March 31, 2024

11,0803,085
23,727
1,575
7,930
9,253
1,909
5,127
3,227
(42)
66,874

10,904
2,274
25,853
1,248
9,141
8,604
2,420
5,220
3,496
(56)
69,11049,140(34,336)
14,80490,482(77,729)
12,753
21,492
1,472
19,815(16,635)
3,180
53,702

49,665(35,315)
14,35093,041(80,277)
12,76321,5101,914
20,332(17,158)
3,174
53,712

1,277
486
1,763

1,302
633
1,935

14,041
851
6,936
1,053
(47)
22,83478,301
145,175

13,045
854
6,711
1,159
(55)
21,71577,363
146,473

FY2022
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable
Electronically recorded obligations-operating
Short-term loans
Accrued expenses
Accrued income and enterprise taxes
Contract liabilities
Accrued consumption taxes
Provision for bonuses to employees
Provision for bonuses to directors andaudit and supervisory board members
Notes payable-facilities
Electronically recorded obligations -non-operating
Other
Total current liabilities
Long-term liabilities
Bonds payable
Long-term loans
Deferred income taxes
Deferred income taxes for land revaluation
Provision for product warranty
Liabilities for retirement benefits
Other
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 gains 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

11(Millions of yen)
FY2023As of March 31, 2024

17,026
8,263
13,026
3,420
1,338
684
265
1,010

18,437
8,611
14,466
3,217
742
842
586
1,080

42
46
724
2,246
48,096

33
44
950
3,957
52,971

7,000
18,094
4,593
1,596
82
3,728
3,521
38,61486,711

7,000
16,413
4,218
1,596
57
3,916
3,478
36,68189,652

16,533
16,445
16,602(1,382)
48,19916,533
16,40817,142(1,301)
48,783

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

6,880
1,479
(778)
(304)
7,277
760
56,821
146,473(2) Consolidated Statement of Income and Statement of Comprehensive Income
Consolidated Statement of Income
FY2022(From April 1, 2022
to March 31, 2023)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gain, net
Subsidy income
Compensation income
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales and retirement of non-current
assetsCommission fee
Compensation expenses
Loss on fire
Additional retirement benefit
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investments in securities
Total extraordinary income
Extraordinary loss
Loss on devaluation of investments in
Securities
Loss on business liquidation
Impairment loss
Total extraordinary losses
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controllinginterests
Net income attributable to owners of the parent

12(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)

124,683
100,072
24,611
23,818793

130,265
103,816
26,44825,187
1,261

19
349
143
29
210
63
210
1,025

51
305
1,323
179
157
634
228
2,879

538
31
14
12
228
289
1,114
704

928
45
34
0
183
214
1,407
2,733

1,632
1,632

208
208

50
50
2,287
1,846
(13)
1,833
453
0
452

2
117
199
318
2,623
1,573
(56)
1,517
1,105
22
1,083

Consolidated Statement of Comprehensive Income(Millions of yen)
End of FY2023(From April 1, 2023
to March 31, 2024)

End of FY2022(From April 1, 2022
to March 31, 2023)
Net income
Other comprehensive income
Net unrealized gains on securities
Translation adjustments
Retirement benefits liability adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to noncontrolling interests

13

453

1,105

(1)
(183)
374
189
642

(559)
(1,341)(345)(2,246)(1,141)641(1,163)022

(3) Consolidated Statement of Changes in Net Assets
FY2022 (April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Common stock
Balance at April 1, 2022

Capital surplus

16,533Retained earnings

16,503

Total shareholders’equityTreasury stock

16,602(1,448)48,190Changes of items during period
Dividend of surplus

(452)

(452)

Net income attributableto owners of the parent

452

452

Decrease due to additional acquisitionof shares of consolidated subsidiaries

(24)

(24)

Acquisition of treasury stock(32)

Disposal of treasury stock

(0)

(0)

65

33

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at March 31, 2023

-

(57)

0

65

8

16,533

16,445

16,602(1,382)

48,199

Accumulated other comprehensive income
Net unrealized Surplus arising
gains onfrom land
securities
revaluation
Balance at April 1, 2022

7,442Translation
adjustments

1,479

745

Retirement
benefits
liability
adjustments

Total
accumulated
othercomprehensive
income

(332)

9,334

Noncontrollinginterests

Total net assets

717

58,242

Changes of items during period
Dividend of surplus(452)

Net income attributable toowners of the parent

452

Decrease due to additional acquisitionof shares of consolidated subsidiaries(24)

Acquisition of treasury stock(0)

Disposal of treasury stock33

Net changes of items otherthan shareholders’ equity

(1)

-

(183)

374

189

23

212

Total changes of items during
period

(1)

-

(183)

374

189

23

221

7,440

1,479

562

41

9,524

740

58,464

Balance at March 31, 2023

14

FY2023 (April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders’ equity
Common stock
Balance at April 1, 2023

Capital surplus

Retained earnings

16,445

16,602

16,533

Total shareholders’equityTreasury stock(1,382)

48,199Changes of items during period
Dividend of surplus

(543)

(543)

Net income attributable toowners of the parent

1,083

1,083

Decrease due to additional acquisitionof shares of consolidated subsidiaries-

Acquisition of treasury stock(37)

Disposal of treasury stock

(0)

(0)

80

43

Net changes of items otherthan shareholders’ equity-

Total changes of items during
periodBalance at March 31, 2024

-

(37)

539

80

583

16,533

16,40817,142(1,301)

48,783

Accumulated other comprehensive income
Net unrealized Surplus arising
gains onfrom land
securities
revaluation
Balance at April 1, 2023

7,440Translation
adjustments

1,479

562

Retirement
benefits
liability
adjustments

Total
accumulated
othercomprehensive
income41

9,524

Noncontrollinginterests

Total net assets

740

58,464

Changes of items during period
Dividend of surplus(543)

Net income attributable toowners of the parent

1,083

Decrease due to additional acquisitionof shares of consolidated subsidiaries-

Acquisition of treasury stock(0)

Disposal of treasury stock43

Net changes of items otherthan shareholders’ equity

(559)

-

(1,341)(345)(2,246)20(2,226)

Total changes of items during
period(559)-(1,341)(345)(2,246)20(1,642)

Balance at March 31, 2024

6,880

1,479

(778)

(304)

7,277

760

56,82115

(4) Consolidated Statement of Cash Flows(Millions of yen)
FY2023(From April 1, 2023
to March 31, 2024)

FY2022(From April 1, 2022
to March 31, 2023)
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Increase (decrease) in provision for bonuses to
employees
Increase (decrease) in provision for product warranty
Increase (decrease) in net liabilities for retirement
benefits
Loss (gain) on sales of investments in securities
Loss (gain) on devaluation of investments in securities
Loss (gain) on sales and retirement of property, plantand equipment
Subsidy income
Loss on fire
Loss on business liquidation
Decrease (increase) in notes and accounts receivable
Decrease (increase) 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 (paid) refunded
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
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 provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) 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 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 the beginning of the year
Cash and cash equivalents at the end of the quarter

16

2,287
5,650
50
(12)
(369)
538
(36)
(26)
(142)
(1,632)
-

2,623
5,716
199
19
(356)
928
68
(24)
(95)
(208)
2

24

41

(29)
228
108
(788)
(170)
(1,417)
4,262
369
(458)
174
29
(1,266)
3,110

(179)
117
(1,780)
628
968
211
8,880
356
(964)
1,021
179
(2,097)
7,375(3,070)
75
(4)
2,444
(18)
5
(424)
(993)

(28)
(3,822)
120
(4)
404
(18)
24
(453)
(3,779)

1,342
8,807
(10,278)
(453)
(1)
(959)
(1,542)

(428)
3,500
(5,196)
(544)
(1)
(986)
(3,658)(4)569
10,503
11,072(143)(205)
11,072
10,867

(5) Notes to Consolidated Financial Statements(Note regarding assumption of going concern)
Not applicable.
(Significant matters that serve as the basis of preparation of consolidated financial statements)(Matters related to scope of consolidation)
Consolidated subsidiaries 39
Major subsidiaries:
Sekisui Kasei Hokkaido Co., Ltd., Sekisui Kasei Kansai Co., Ltd., Sekisui Kasei Toubu Co., Ltd.,Sekisui Kasei Seibu Co., Ltd., Sekisui Kasei Chubu Co., Ltd., Sekisui Kasei Yamakyu Co., Ltd.,Sekisui Kasei Europe B.V., Proseat Europe GmbH, Sekisui Kasei U.S.A., Inc., Sekisui Kasei
Mexico S.A. de C.V., Sekisui Kasei Korea Co., Ltd., Sekisui Kasei Taiwan Co., Ltd., Sekisui Kasei(Shanghai) International Trading Co., Ltd., Sekisui Kasei (Thailand) Co., Ltd., PT. Sekisui Kasei
Indonesia(Segment Information)<Segment Information>
1. Outline of reported segments
The reportable segments of the Company are components for which discrete financial
information is available, and whose operating results are regularly reviewed by the Board of
Directors to make decisions about resource allocation and to assess performance.
The Company’s business revolves mainly around plastics. The Company has establishedbusiness divisions based on product markets and applications for global development in the twosegments of Human Life and Industry. Each division works closely with subsidiaries to planoverall strategies and operate its business.
Accordingly, the Group consists of segments by product market and application on the basis of
the divisions and has two reportable segments “Human Life” and “Industry.”
The Human Life Segment primarily manufactures and sells boxes and trays for agricultural andfishery products, food containers, and housing and civil engineering materials, etc. The main
products for the Industry Segment include automobile components, digital consumer electronics
components, packaging materials and other related products.
2. Methods used for calculating sales, income (or loss), assets and other items of each reportablesegment
The accounting policies of the segments are the same as those stated in “Significant matters thatserve as the basis of preparation of consolidated financial statements.”
Segment income is based on ordinary income. Inter-segment sales and transfers are based onprevailing market prices.

17

3. Information on sales, income (or loss), assets and other items of each reportable segment
FY2022 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable Segments
Human Life
Segment

Industry
Segment

Total

Adjustments andeliminations (*1)

Total (*2)

Net sales:
52,47022,76475,23475,234
Japan
33,103
33,103
33,103
Europe131
12,524
12,655
12,655
Asia
3,689
3,689
3,689
Other
Earnings from contracts with
52,602
72,081
124,683
124,683
customers
Other earnings
52,602
72,081
124,683
124,683
Sales to third parties
Intersegment sales and transfers
565
161
726
(726)
Total
53,167
72,242
125,410(726)
124,683
2,585
(400)
2,185
(1,481)704
Segment income (loss)
67,06360,314
127,378
17,796145,175
Segment assets
Other items
1,852
3,024
4,877
773
5,650
Depreciation and amortization
Increase in property, plant and
1,387
1,614
3,002
680
3,682
equipment and intangible assets(Notes)1. Adjustments and eliminations in the preceding table were as follows:(1) Segment income in the amount of (1,481) million yen includes elimination of inter-segment transactions in theamount of (1) million yen and unallocated corporate expenses of (1,480) million yen.
(2) Segment assets in the amount of 17,796 million yen consisted primarily of investments in securities and assets
related to administrative departments and the Central R&D Laboratory owned by the Company.
(3) Depreciation and amortization in the amount of 773 million yen include amortization of long-term pre-paid
expenses, and consisted primarily of depreciation of assets related to administrative departments and the Central R&D
Laboratory owned by the Company.
(4) Increase in property, plant and equipment and intangible assets in the amount of 680 million yen consisted
primarily of assets related to the Central R&D Laboratory owned by the Company.
2. Segment income was adjusted for ordinary income in the consolidated statement of income.
3. Names of major products belonging to each segment- Human Life Segment: ESLEN Beads, ESLEN Sheets, ESLEN Wood, INTERFOAM, other foamed / molded products
using these materials, 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 using these materials, etc.

18

FY2023 (April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable Segments
Human Life
Segment

Industry
Segment

Total

Adjustments andeliminations (*1)

Total (*2)

Net sales:
49,07325,63474,70874,708
Japan
38,82738,82738,827
Europe29
12,148
12,177
12,177
Asia
4,550
4,550
4,550
Other
Earnings from contracts with
49,103
81,161
130,265
130,265
customers
Other earnings
49,103
81,161
130,265
130,265
Sales to third parties
Intersegment sales and transfers
595
127
723
(723)
Total
49,69981,289130,988(723)
130,265
1,787
2,363
4,151
(1,417)2,733
Segment income (loss)
65,79865,385
131,184
15,289146,473
Segment assets
Other items
1,923
3,027
4,951
765
5,716
Depreciation and amortization
Increase in property, plant and
2,178
2,289
4,468
593
5,062
equipment and intangible assets(Notes)1. Adjustments and eliminations in the preceding table were as follows:(1) Segment income in the amount of (1,417) million yen includes elimination of inter-segment transactions in theamount of (1) million yen and unallocated corporate expenses of (1,415) million yen.
(2) Segment assets in the amount of 15,289 million yen consisted primarily of investments in securities and assets
related to administrative departments and the Central R&D Laboratory owned by the Company.
(3) Depreciation and amortization in the amount of 765 million yen include amortization of long-term pre-paid
expenses, and consisted primarily of depreciation of assets related to administrative departments and the Central R&D
Laboratory owned by the Company.
(4) Increase in property, plant and equipment and intangible assets in the amount of 593 million yen consisted
primarily of assets related to the Central R&D Laboratory owned by the Company.
2. Segment income was adjusted for ordinary income in the consolidated statement of income.
3. Names of major products belonging to each segment- Human Life Segment: ESLEN Beads, ESLEN Sheets, ESLEN Wood, INTERFOAM, CELPET, other foamed / molded
products using these materials, ES Dan Mat, ESLEN Block, etc.
- Industry Segment: PIOCELAN, LIGHTLON, NEOMICROLEN, TECHPOLYMER, ST-gel, TECHEATER, ELASTIL,
FOAMAC, ST-LAYER, ST-Eleveat, other foamed/molded products using these materials, etc.

19

<Related information>
FY2022 (April 1, 2022 to March 31, 2023)
1. Information by product and service
Omitted as information is categorized the same as for the reportable segments.
2. Information by region(1) Net sales(Millions of yen)Japan

Europe75,234Asia
33,103

Other
12,655

Total
3,689

124,683(Note) Net sales are categorized by region based on customer location.

(2) Property, plant and equipment(Millions of yen)Japan

EuropeAsia

43,271

Other

4,201

4,239

Total
1,990

53,702

3. Information by major customer(Millions of yen)
Customer or individual name

Net sales

Related segment

FP Corporation

17,381

Human Life Segment

FY2023 (April 1, 2023 to March 31, 2024)
1. Information by product and service
Omitted as information is categorized the same as for the reportable segments.
2. Information by region(1) Net sales(Millions of yen)Japan

Europe74,708

Asia
38,827

Other
12,177

Total
4,550

130,265(Note) Net sales are categorized by region based on customer location.

(2) Property, plant and equipment(Millions of yen)Japan

Europe42,442

Asia
4,691

Other
4,314

Total
2,264

53,712

3. Information by major customer(Millions of yen)
Customer or individual name

Net sales

FP Corporation

Related segment
17,19020

Human Life Segment

<Information concerning impairment loss on non-current assets in each reportable segment>
FY2022 (April 1, 2022 to March 31, 2023)(Millions of yen)
Human Life
Segment

Industry
Segment

Corporate/
Eliminations－

Impairment loss

Total
－

50

50

FY2023 (April 1, 2023 to March 31, 2024)(Millions of yen)
Human Life
Segment
Impairment loss

Industry
Segment
39

Corporate/
Eliminations

Total
－

159

199

(Per share information)
FY2022(From April 1, 2022
to March 31, 2023)
Net assets per share

FY2023(From April 1, 2023
to March 31, 2024)

1,275.00 yen

1,235.52 yen

Net income per share
10.00 yen
(Notes) 1. Diluted net income per share has not been presented as there are no potentially dilutive shares.

23.90 yen

(Notes) 2. Basis for computation of net assets per share is as follows.
FY2022

FY2023(As of March 31, 2023)(As of March 31, 2024)

58,46456,821

740

760

(740)

(760)

Net assets related to common stock at the fiscal year-end (million yen)

57,72356,060

Number of shares of common stock outstanding (thousands)

46,98846,988

Number of shares of treasury stock (thousands)

1,714

1,614

45,27345,373

Total net assets (million yen)Amounts deducted from total net assets (million yen)(of which, equity of non-controlling interests (million yen))

Number of shares of common stock at fiscal year-end used incomputing net assets per share (thousands)(Notes) 3. Basis for computation of net income per share is as follows.
FY2022

FY2023(From April 1,2022
to March 31, 2023)(From April 1, 2023
to March 31, 2024)

Net income per share
Net income attributable to owners of the parent (million yen)

452

1,083

Amount not attributable to common shareholders (million yen)－－

Net income related to common stock attributable to owners of
the parent (million yen)

452

1,083

45,25045,343

Average number of shares during the period (thousands)(Subsequent events)
Not applicable.

21