Consolidated Financial Results
for the Nine Months Ended December 31, 2021
[Japanese GAAP]
January 25, 2022
Company name: SHIKOKU CHEMICALS CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Code number: 4099
URL: https://www.shikoku.co.jp/
Representative: Naoto Tanaka, President and C.E.O.
Contact: Yoshinori Manabe, Director, Executive Officer, Head of Business Promotion Division
Phone: +81-877-22-4111
Scheduled date of filing quarterly securities report: February 14, 2022
Scheduled date of commencing dividend payments: –Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts less than one million yen are rounded down)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (from April 1, 2021 to December
31, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Nine months ended
Million yen%
Million yen%
Million yen%
Million yen%
December 31, 2021
39,229
8.9
6,158
26.0
6,721
29.1
4,794
22.6
December 31, 2020
36,024(5.6)
4,888(12.2)
5,206
(9.6)
3,911
(2.9)
(Note) Comprehensive income: Nine months ended December 31, 2021: ¥5,561 million [4.7 %]Nine months ended December 31, 2020: ¥5,310 million [13.5 %]Basic earnings
Diluted earnings
per shareper share
Nine months ended
Yen
Yen
December 31, 2021
87.27–
December 31, 2020
70.05–
(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

79,514As of December 31, 2021
109,946
76,566
As of March 31, 2021
107,344(Reference) Equity: As of December 31, 2021: ¥78,660 million
As of March 31, 2021: ¥75,718 million

71.5
70.5

2. Dividends
1stquarter-end
Yen

Annual dividends
2nd
3rd
Fiscal yearquarter-end
quarter-end
end
Yen

Total

Yen

Yen

Yen

12.00
Year ended March 31, 2021
12.00
Year ending March 31, 2022
Year ending March 31, 2022
(Forecast)(Note) Revisions to the cash dividends forecasts most recently announced: None

12.00

24.00

12.00

24.00

3. Forecast of Consolidated Financial Results for the Year Ending March 31, 2022 (from April 1, 2021 to March
31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings
Net sales
Operating profit
Ordinary profit
to owners of parent
per share
Million yen% Million yen% Million yen% Million yen%

Yen

Full year
53,500
7.9
8,400
13.5
9,000
12.5
6,700
16.3
122.12(Notes) 1. Revisions to the financial results forecast most recently announced: Yes
2. For the forecast of consolidated financial results, please also refer to the “Notice Concerning Financial
Results Forecast” announced today (January 25, 2022).
* Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Accounting policies adopted specially for the preparation of quarterly 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: Yes
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):December 31, 2021: 54,832,263 shares
March 31, 2021: 55,877,263 shares2) Total number of treasury shares at the end of the period:
December 31, 2021: 205,688 shares
March 31, 2021: 212,603 shares
3) Average number of shares during the period:
Nine months ended December 31, 2021: 54,936,628 shares
Nine months ended December 31, 2020: 55,842,155 shares* These quarterly financial results are outside the scope of quarterly 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 3 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 ....... 3
2. Quarterly Consolidated Financial Statements and Primary Notes .............................................................. 4(1) Quarterly Consolidated Balance Sheets .................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income .......................................... 6(3) Notes to Quarterly Consolidated Financial Statements ........................................................................... 8(Notes on going concern assumption) ..................................................................................................... 8(Notes in the case of significant changes in shareholders’ equity) .......................................................... 8(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements) . 8(Changes in accounting policies) ............................................................................................................ 8(Additional information) ......................................................................................................................... 9(Segment information, etc.) ................................................................................................................... 10

1

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Japanese economy during the nine months ended December 31, 2021 saw a gradual recovery following
progress in vaccination against the novel coronavirus disease (COVID-19) and the lifting of the state of
emergency on September 30. However, economic outlook is becoming more uncertain due to growing impactof the spread of the Omicron strain from the end of the year, consumer sentiment worsened by rising prices on
the back of high resource prices and the depreciation of the yen, and supply constraints such as semiconductor
shortages. Overseas economies continue to pick up globally, but supply constraints and high resource prices are
becoming more serious, raising concerns for rising inflation. Therefore, the situation remains unpredictable.
Under these circumstances, for the nine months ended December 31, 2021 (from April 1, 2021 to December
31, 2021), the Group posted net sales of ¥39,229 million (up 8.9% year-on-year), operating profit of ¥6,158
million (up 26.0% year-on-year), ordinary profit of ¥6,721 million (up 29.1% year-on-year) and profit
attributable to owners of parent of ¥4,794 million (up 22.6% year-on-year), all of which increased from theprevious year’s results. In addition, even when compared with periods before the COVID-19 pandemic, net sales,
ordinary profit, and profit attributable to owners of parent achieved high levels against the backdrop of global
economic recovery, hitting record highs.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, largely surpassed those of the previous fiscal year, which
was affected by the spread of COVID-19, due to solid demand for replacement tires, despite a decline inautomobile production resulting from semiconductor shortages. Sales of carbon disulfide for rayon andcellophane, and sodium sulfate for bath agents and detergents increased year on year due to a rebound from the
COVID-19 pandemic.
(Organic chemicals)
Regarding chlorinated isocyanuric acid for disinfectants, the domestic market performed better than theprevious year mainly due to a recovery in sales of agents for swimming pools following the partial resumptionof swimming lessons at schools. In the U.S. market, the balance between supply and demand is tightening mainly
due to a recovery in economic conditions and stay-at-home demand, and the Company tried to improve
profitability by passing on soaring resource prices and distribution costs, which resulted in a significant increasein profitability.
(Fine chemicals)
Regarding Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability Preservative) for printed wiringboards, sales remained solid, against a backdrop of the growth of electronics markets worldwide. Sales of advanced& specialty chemicals such as epoxy resin curing agent (imidazoles), resin modifier (glycoluril derivatives, etc.)
and semiconductor processing materials increased year on year, backed by a recovery in demand for use inelectronic components and automobiles.
As a result, net sales for the chemicals operations segment were ¥25,499 million (up 16.0% year-on-year),and segment profit was ¥5,734 million (up 47.3% year-on-year), both surpassing the previous year’s results.
2) Housing Materials operations
Although the number of new housing starts showed signs of a slight recovery, sales of interior, exterior
finishes and paving materials and exterior products remained sluggish, as governments and private companies
deferred or had a wait-and-see attitude for their projects or capital investment, against a backdrop of falling
consumer sentiment and uncertainty about the future. Profitability also declined due to soaring prices of raw
materials including aluminum ingots.
As a result, net sales for the housing materials operations segment were ¥12,772 million (down 4.4% year2

on-year), and segment profit was ¥1,693 million (down 25.0% year-on-year), both falling below the previous
year’s results.
Reference information[Overseas net sales]
Nine months ended December 31, 2020
(from April 1, 2020 to December 31, 2020)

Nine months ended December 31, 2021
(from April 1, 2021 to December 31, 2021)

Net sales(Million yen)

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

Overseas net sales toconsolidated net sales (%)

Asia

5,103

14.1

6,348

16.2

North America

4,496

12.5

5,587

14.2

Other regions

1,405

3.9

1,560

4.0

Total

11,00430.5

13,495

34.4

Consolidated net
sales

36,024

39,229(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets increased by ¥2,602 million from the end of the previous fiscal year to ¥109,946 million. Major
increases were ¥2,094 million in investment securities and ¥860 million in notes and accounts receivable - trade,
and a major decrease was ¥2,550 million in cash and deposits.
Liabilities decreased by ¥346 million from the end of the previous fiscal year to ¥30,431 million. Major
decreases were ¥1,537 million in retirement benefit liability and ¥565 million in income taxes payable.
Net assets increased by ¥2,948 million from the end of the previous fiscal year to ¥79,514 million. Major
increases were ¥2,184 million in retained earnings and ¥685 million in valuation difference on available-for-salesecurities.
As a result, equity ratio rose to 71.5%, from 70.5% at the end of the previous fiscal year.
(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 April 27, 2021).
Economic activities picked up during the nine months ended December 31, 2021 following progress invaccination against COVID-19 and the lifting of the state of emergency on September 30. Although the situation
looks to remain unpredictable due to the spread of the Omicron strain from the end of the year and other factors,
full-year financial results are now expected to exceed the previously announced forecast, in light of continuing
strong sales of chlorinated isocyanuric acid in the U.S. market and improvement in profitability of the chemicals
operations due to a depreciation of the yen exchange rate.
Net sales, operating profit, ordinary profit, profit attributable to owners of parent, and basic earnings per
share are all forecast to reach new highs.
Assumptions for the average exchange rates for the full year are ¥111 to U.S. dollar and ¥130 to Euro.
For details, please also refer to the “Notice Concerning Financial Results Forecast” announced today (January
25, 2022).

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
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

4

As of December 31, 2021

25,907
12,637
2,678
13,999
6,259
46
3,024
471
(1)
65,02423,356
13,4972,503
13,600
6,986
43
3,538
609
(0)
64,135

5,040
3,176
8,857
3,771
646
21,492
165

5,294
3,973
8,861
4,031
608
22,769249

19,705
324
309
325
(3)
20,662
42,319107,344

21,800
323
310
362
(3)
22,79245,810109,946(Million yen)
As of March 31, 2021
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
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of December 31, 2021

6,602
338
2,530
74
1,418
1,389
201
17
75
3,055
15,702

7,341
386
2,530
83
1,122
823
122
12
181
3,078
15,682

10,95716
1,111

11,974
222
1,111

77

86

2,134
379
32
365
15,07530,778

597
380
44
331
14,74930,431

6,867
5,740
57,140(236)
69,512

6,867
5,740
59,324(236)
71,696

3,789
(27)
2,533
(90)
0
6,205
847
76,566
107,344

4,475
(10)
2,533
(46)
11
6,963
854
79,514
109,946

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Nine Months Ended December 31(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
Sales discounts
Foreign exchange losses
Donations
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Nine months
ended December 31, 2020
36,02421,807
14,216Nine months
ended December 31, 2021
39,22922,705
16,523

3,365
296
1,671
153

4,260
322
1,677
117

13

13

861
2,966
9,328
4,888

962
3,010
10,364
6,158

33
397
－
78
510

49
422
110
51
633

16
93
77
－
5
192
5,206

18
－
－
50
2
70
6,721

0
478
35
513

0
－
28
28

16
38
7
63
5,656
1,725
3,931
19
3,911

12
－
5
18
6,731
1,929
4,802
8
4,794

6

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31(Million yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

Nine months
ended December 31, 2020
3,931

Nine months
ended December 31, 2021
4,802

1,401
4
(47)
20
1,379
5,310

687
17
43
10
759
5,561

5,290

5,551

20

10

7

(3) Notes to Quarterly 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 June 10, 2021 to purchase its treasury shares pursuant to the provisions of the articles
of incorporation, as set forth in Article 459, Paragraph 1 of the Companies Act, and purchased 1,045,000 shares oftreasury shares, in accordance with Article 370 of the Companies Act and Article 25 of the articles of incorporationof the Company (Written resolution in lieu of resolution at the Board of Directors). As a result, during the ninemonths ended December 31, 2021, treasury shares increased by ¥1,290 million.
(Cancellation of treasury shares)
The Company resolved on June 10, 2021 to cancel its treasury shares pursuant to the provisions in Article 178of the Companies Act, and cancelled 1,045,000 shares of treasury shares, in accordance with Article 370 of theCompanies Act and Article 25 of the articles of incorporation of the Company (Written resolution in lieu ofresolution at the Board of Directors). As a result, during the nine months ended December 31, 2021, retained
earnings and treasury shares decreased by ¥1,283 million and ¥1,283 million, respectively.
(Accounting policies adopted specially for the preparation of quarterly 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 third quarter under review, and multiply profit
before income taxes for the quarter by the estimated effective tax rate.
Income taxes – deferred is included in income taxes.
(Changes in accounting policies)(Adoption of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020, hereinafter referred to as “Revenue Recognition Accounting Standard”) from the beginning of the firstquarter to recognize revenue when control of promised goods or services is transferred to a customer in the estimatedamount to be received in exchange for those goods or services.
The application of the Revenue Recognition Accounting Standard follows the transitional measures set forth in
the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard, but has no impact on the beginningbalance of retained earnings.
In addition, the adoption of the Revenue Recognition Accounting Standard has no impact on profit and loss.
In accordance with the transitional measures set forth in Paragraph 89-2 of the Revenue Recognition AccountingStandard, the Company made no reclassification of the previous fiscal year’s results to conform to the newpresentation method. Moreover, in accordance with the transitional measures set forth in Paragraph 28-15 of the“Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), the Company
did not provide information on composition of revenue from contracts with customers for the nine months ended
December 31, 2020.
(Adoption of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Faire Value Measurement” (ASBJ Statement No. 30,

8

July 4, 2019, hereinafter referred to as “Fair Value Measurement Accounting Standard”) from the beginning of thefirst quarter. In accordance with the transitional measures set forth in Paragraph 19 of the Fair Value Measurement
Accounting Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement
No. 10, July 4, 2019), the Company applies the new accounting policies set forth in the Fair Value Measurement
Accounting Standard into the future. This application has no impact on the quarterly consolidated financial
statements.
(Additional information)(Establishment of Retirement Benefit Trust)During the nine months ended December 31, 2021, the Company established a Retirement Benefit Trust for
further improving the soundness of the retirement benefit system and contributed ¥1,500 million in cash and deposits.
As a result, retirement benefit liability decreased by the same amount.

9

(Segment information, etc.)
I. For the nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
Information on net sales and profit (loss) by reportable segment(Million yen)
Reportable segment
Chemicals
operations

Housing
Materials
operations

Total

Other
(Note) 1

Total

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Net sales
Net sales to outside
21,983
13,356 35,340
684
36,024－36,024
customers
Inter-segment net sales
0
1
2
214
217
(217)
－
or transfers
Total
21,983
13,358 35,342
898
36,241(217)
36,024
Segment profit
3,892
2,256
6,149
92
6,242
(1,353)
4,888(Notes) 1. The “Other” category represents business segments not included in the reportable segments, andincludes the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(1,353) million includes inter-segment eliminations of ¥0 million
and corporate expenses in the amount of ¥(1,354) million not allocated to each reportable segment. The
relevant corporate expenses are mainly general and administrative expenses not allocated to thereportable segments.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.
II. For the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)
Reportable segment
Chemicals
operations

Housing
Materials
operations

Total

Other
(Note) 1

Total

Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Net sales
Inorganic chemicals
9,247
－
9,247
－
9,247
－
9,247
Organic chemicals
8,909
－
8,909
－
8,909
－
8,909
Fine chemicals
7,343
－
7,343
－
7,343
－
7,343
Interior, exterior finishes
－
1,024
1,024
－
1,024
－
1,024
and paving materials
Exterior products－
11,748 11,748－
11,748－
11,748
Other
－
－
－
956
956
－
956
Revenue from contracts
25,49912,772 38,272
956
39,229－39,229with customers
Net sales to outside
25,49912,772 38,272
956
39,229－39,229customers
Inter-segment net sales or
0
1
2
206
209
(209)
－
transfers
Total
25,50012,774 38,274
1,163
39,438(209)
39,229Segment profit
5,734
1,693
7,428
122
7,550
(1,392)
6,158(Notes) 1. The “Other” category represents business segments not included in the reportable segments, andincludes the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(1,392) million includes inter-segment eliminations of ¥0 million
and corporate expenses in the amount of ¥(1,392) million not allocated to each reportable segment. The
relevant corporate expenses are mainly general and administrative expenses not allocated to thereportable segments.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

10