Consolidated Financial Results
for the Three Months Ended June 30, 2021
[Japanese GAAP]
July 30, 2021
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: August 6, 2021
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 Three Months Ended June 30, 2021 (from April 1, 2021 to June 30,
2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2021
12,869
11.0
1,770
40.3
1,975
37.1
1,351
42.8
June 30, 2020
11,592(9.6)
1,262(27.0)
1,441(19.2)
946(21.8)(Note) Comprehensive income: Three months ended June 30, 2021: ¥1,000 million [(46.5) %]Three months ended June 30, 2020: ¥1,868 million [552.8 %]Three months ended
June 30, 2021
June 30, 2020

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

-

24.40
16.82

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

104,235
As of June 30, 2021
75,603
107,344
As of March 31, 2021
76,566(Reference) Equity: As of June 30, 2021: ¥74,757 million
As of March 31, 2021: ¥75,718 million

71.7
70.5

2. Dividends
1stquarter-end
Yen

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

Year-end

Total

Yen

Yen

Yen

Year ended March 31, 2021
–
12.00
–
Year ending March 31, 2022–
Year ending March 31, 2022
12.00–
(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 ofper share
parentFull year

Million yen% Million yen% Million yen% Million yen

51,500
3.9
8,000
8.1
8,300
3.8
(Note) Revisions to the financial results forecast most recently announced: None

6,000

%

Yen

4.2

107.79* 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):
June 30, 2021: 54,832,263 shares
March 31, 2021: 55,877,263 shares2) Total number of treasury shares at the end of the period:
June 30, 2021: 212,603 shares
March 31, 2021: 212,603 shares
3) Average number of shares during the period:
Three months ended June 30, 2021: 55,403,410 shares
Three months ended June 30, 2020: 56,293,678 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 basedon 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 the operating
results forecasts and cautionary notes concerning their use, please refer to “(3) Explanation of Consolidated 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 three months ended June 30, 2021 continued to be uncertain affected by
the spread of the novel coronavirus disease (COVID-19), with individual consumption weakening in response to
the state of emergency declaration for the third time in some areas. As for overseas economies, the U.S. and China
showed clear signs of accelerated recovery, thanks to the gradual resumption of economic activities and various
economic stimulus measures. The Eurozone also showed signs of recovery due to vaccination rollout, but thesituation remained unpredictable as signs of a resurgence of infection by mutant strains have emerged.
Under these circumstances, for the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021),
the Group posted net sales of ¥12,869 million (up 11.0% year-on-year), operating profit of ¥1,770 million (up40.3% year-on-year), ordinary profit of ¥1,975 million (up 37.1% year-on-year) and profit attributable to ownersof parent of ¥1,351 million (up 42.8% year-on-year), all of which increased from the previous year’s results. In
addition, both net sales and profits at each stage exceeded those at the corresponding period of the year before
the COVID-19 pandemic.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, have largely surpassed those of the previous fiscal year,
which was affected by the spread of COVID-19, backed by a rapid recovery in demand for automobiles and tires
since the second half of the previous fiscal year. Sales of carbon disulfide for rayon and cellophane remainedsluggish, while sales of sodium sulfate for bath agents and detergents increased year on year due to a reboundfrom the COVID-19 pandemic.
(Organic chemicals)
Regarding Chlorinated isocyanuric acid for disinfectants, sales of agents for swimming pools recovered indomestic market, thanks to the resumption of swimming lessons at schools. Sales of agents for plumbing systems(sanitary devices) remained strong with increased demand for sterilization and cleaning as a result of risingawareness of hygiene at homes. Sales remained strong in the U.S. market, backed by the growing homeswimming pool market due to a recovery in economic conditions and stay-at-home demand.
(Fine chemicals)
Regarding Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability Preservative) for printed wiringboards, sales remained solid, on the back of booming semiconductor and electronics markets worldwide. Sales ofadvanced & specialty chemicals such as epoxy resin curing agent (imidazoles) greatly surpassed those of theprevious fiscal year, which was affected by the spread of COVID-19, backed by a recovery in demand for use inelectronic components and automobiles.
As a result, net sales for the chemicals operations segment were ¥8,391 million (up 19.0% year-on-year), andsegment profit was ¥1,753 million (up 60.4% 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, against a backdrop of weak domestic
demand and uncertainty about the future due to a reemergence of COVID-19. Profitability also declined due tosoaring prices of raw materials including aluminum ingots.
As a result, net sales for the housing materials operations segment were ¥4,077 million (down 6.5% year-onyear), and segment profit was ¥474 million (down 21.1% year-on-year), both falling below the previous year’s
results.

2

Reference information[Overseas net sales]
Three months ended June 30, 2020
(from April 1, 2020 to June 30, 2020)Three months ended June 30, 2021
(from April 1, 2021 to June 30, 2021)

Net sales(Million yen)

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

Overseas net sales toconsolidated net sales (%)

Asia

1,476

12.7

1,844

14.3

North America

1,601

13.8

2,047

15.9

Other regions

481

4.1

476

3.7

Total

3,559

30.7

4,367

33.9

Consolidated net
sales

11,592

12,869(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets decreased by ¥3,108 million from the end of the previous fiscal year to ¥104,235 million. A major
increase was ¥878 million in construction in progress, and major decreases were ¥1,887 million in cash anddeposits, ¥999 million in notes and accounts receivable - trade, and ¥699 million in securities.
Liabilities decreased by ¥2,145 million from the end of the previous fiscal year to ¥28,632 million. Major
decreases were ¥1,539 million in retirement benefit liability and ¥688 million in income taxes payable.
Net assets decreased by ¥962 million from the end of the previous fiscal year to ¥75,603 million. Major
decreases were ¥600 million in retained earnings and ¥364 million in valuation difference on available-for-salesecurities.
As a result, equity ratio rose to 71.7%, 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 not been changed from the initial plan (announced on April 27,2021). Assumptions for the exchange rates of major currencies are ¥105 to U.S. dollar and ¥128 to Euro.

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 June 30, 2021

25,907
12,637
2,678
13,999
6,259
46
3,024
471
(1)
65,02424,020
11,6372,503
13,300
6,115
43
3,138
465
(0)
61,223

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

4,967
2,946
8,857
4,649
601
22,023266

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

19,599
504
311
311
(3)
20,72243,011
104,235

(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 June 30, 2021

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

6,147
357
2,530
100
1,211
701
115
15
676
3,225
15,08010,95716
1,111

11,008
9
1,111

77

77

2,134
379
32
365
15,07530,778

595
379
30
339
13,551
28,632

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

6,867
5,740
56,539(243)
68,903

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

3,424
(17)
2,533
(91)
4
5,853
845
75,603
104,235

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30(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
Miscellaneous losses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

Three months
ended June 30, 2020
11,592
7,179
4,413

Three months
ended June 30, 2021
12,869
7,717
5,151

1,142
101
558
44

1,353
121
578
41

5

4

280
1,019
3,151
1,262

261
1,020
3,380
1,770

8
198
－
19
226

15
164
19
16
214

7
32
6
0
47
1,441

7
－
－
1
9
1,975

4
35
39

－
28
28

14
14
1,466
529
936
(10)
946

1
1
2,002
654
1,347
(4)
1,351

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30(Million yen)Three months
ended June 30, 2020
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

7

936

Three months
ended June 30, 2021
1,347

932
2
(8)
6
932
1,868

(359)
10
(0)
3
(347)
1,000

1,877

1,000

(8)

0

(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 threemonths ended June 30, 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 178 of
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 of resolution
at the Board of Directors). As a result, during the three months ended June 30, 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 first 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 under review to recognize revenue when control of promised goods or services is transferred to a customer
in the estimated amount 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 three months ended
June 30, 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,
July 4, 2019, hereinafter referred to as “Fair Value Measurement Accounting Standard”) from the beginning of the8first quarter under review. 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 first quarter under review, 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 three months ended June 30, 2020 (from April 1, 2020 to June 30, 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
statements ofincome (Note) 3

Net sales
Net sales to outside
7,051
4,362 11,414
178
11,592－
11,592
customers
Inter-segment net sales
0
0
0
87
87
(87)
－
or transfers
Total
7,052
4,362 11,414
265
11,679(87)
11,592
Segment profit
1,093
601
1,694
26
1,721
(459)
1,262
(Notes) 1. The “Other” category represents business segments not included in the reportable segments, and includes
the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(459) million includes inter-segment eliminations of ¥0 million
and corporate expenses in the amount of ¥(459) 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 statements of income.
II. For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 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
statements ofincome (Note) 3

Net sales
Inorganic chemicals
2,928
－
2,928
－
2,928
－
2,928
Organic chemicals
3,220
－
3,220
－
3,220
－
3,220
Fine chemicals
2,243
－
2,243
－
2,243
－
2,243
Interior, exterior finishes
－
348
348
－
348
－
348
and paving materials
Exterior products
－
3,729
3,729
－
3,729
－
3,729
Other
－
－
－
399
399
－
399
Revenue from contracts
8,391
4,077 12,469
399
12,869－12,869with customers
Net sales to outside
8,391
4,077 12,469
399
12,869－12,869customers
Inter-segment net sales
0
0
0
79
80
(80)
－
or transfers
Total
8,391
4,078 12,470
479
12,949(80)
12,869Segment profit
1,753
474
2,228
41
2,269
(499)
1,770
(Notes) 1. The “Other” category represents business segments not included in the reportable segments, and includes
the IT systems operations and food operations.
2. The adjustment for segment profit of ¥(499) million includes inter-segment eliminations of ¥0 million
and corporate expenses in the amount of ¥(499) 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 statements of income.

10