Consolidated Financial Results
for the Three Months Ended March 31, 2024
[Japanese GAAP]
April 25, 2024
Company name: SHIKOKU KASEI HOLDINGS CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Code number: 4099
URL: https://www.shikoku.co.jp/eng/
Representative: Mitsunori Watanabe, President
Contact: Yoshiaki Ando, Director in charge of Corporate Management
Phone: +81-877-22-4111
Scheduled date of filing quarterly securities report: May 15, 2024
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 March 31, 2024 (from January 1, 2024 to March
31, 2024)(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%
March 31, 2024
17,358
18.2
2,405
(0.1)
2,903
11.2
1,803
3.4
March 31, 2023
14,685
–
2,408
–
2,610
–
1,744
–
(Note) Comprehensive income: Three months ended March 31, 2024: ¥3,003 million [29.8%]
Three months ended March 31, 2023: ¥2,313 million [– %]Basic earnings
per share
Three months ended
March 31, 2024
March 31, 2023

Diluted earnings
per share

Yen

Yen

36.72
33.06

–
–

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

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

130,908
78,940
As of March 31, 2024
86,867
As of December 31, 2023
131,046(Reference) Equity: As of March 31, 2024: ¥78,179 million
As of December 31, 2023: ¥86,157 million

59.7
65.7

2. Dividends
1stquarter-end

2ndquarter-end

Yen

Yen

Annual dividends
3rdYear-endquarter-end

Total

Yen

Yen

Yen

–

14.00

28.00

–

14.00

28.00

Fiscal year ended December 31,
–
14.00
2023
Fiscal year ending December 31,–
2024
Fiscal year ending December 31,
14.00
2024 (Forecast)(Note) Revisions to the cash dividends forecast most recently announced: None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2024 (from January 1,
2024 to December 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings
Net sales
Operating profit
Ordinary profit
to owners ofper share
parentMillion yen% Million yen% Million yen% Million yen

Full year
64,0001.4
7,800 (2.7)
8,200 (11.6)(Note) Revisions to the financial results forecast most recently announced: None%

Yen

5,500 (30.0)

108.73* 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: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (ordinary shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2024: 44,869,563 shares
December 31, 2023: 50,760,663 shares2) Total number of treasury shares at the end of the period:
March 31, 2024: 176,592 shares
December 31, 2023: 176,415 shares
3) Average number of shares during the period:
Three months ended March 31, 2024: 49,111,426 shares
Three months ended March 31, 2023: 52,769,141 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 theoperating 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
Quarterly Consolidated Statements of Income........................................................................................... 6
Three Months Ended March 31 ............................................................................................................... 6
Quarterly Consolidated Statements of Comprehensive Income................................................................. 7
Three Months Ended March 31 ............................................................................................................... 7(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
(Segment information, etc.) ...................................................................................................................... 9

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 March 31, 2024 saw a continued recovery in businesssentiment against a backdrop of rising wages and stock prices. However, with the yen continuing to depreciate
in spite of the policy change by the Bank of Japan, with the resulting high prices putting downward pressure on
consumer spending, this has meant that the recovery of the domestic economy has been lacking in strength. In
overseas economies, the U.S. economy has performed steadily, particularly in terms of consumer spending;however, the economies in both Europe and China have continued to be on a weak footing.
Under these circumstances, for the three months ended March 31, 2024 (from January 1, 2024 to March 31,2024), the Group posted net sales of ¥17,358 million (up 18.2% year-on-year), operating profit of ¥2,405 million(down 0.1% year-on-year), ordinary profit of ¥2,903 million (up 11.2% year-on-year), and profit attributable toowners of parent of ¥1,803 million (up 3.4% year-on-year).
Net sales renewed record highs in the first three months ended March 31, 2024 due to strong sales in overseas
markets for our Chemicals operations. Operating profit decreased owing to increases in cost of sales and selling,
general, and administrative expenses; however, ordinary profit and profit attributable to owners of parent bothincreased due to the recording of foreign exchange gains.
Operating results by segment are as follows.
1) Chemicals operations(Inorganic chemicals)
Sales of insoluble sulfur, a material for radial tires, continued to expend in overseas markets, exceeding thoseof the previous year. Sales of carbon disulfide for rayon and cellophane were down on the previous year, due
mainly to sluggish performance in the rayon market. Sales of sodium sulfate for bath agents and detergents
remained solid, exceeding those of the previous year.
(Organic chemicals)
Regarding chlorinated isocyanurates for disinfectants, sales exceeded those of the previous year in thedomestic market due to solid sales of household sanitary products. In the U.S. market, sales exceeded those of
the previous year due to inventory adjustments in distribution and a tightening of supply and demand.
(Fine chemicals)
Sales of electronic chemicals, particularly Glicoat-SMD, a heat-resistant soluble OSP (Organic Solderability
Preservative) for printed wiring boards, exceeded those of the previous year owing to the bottoming out of thesemiconductor and electronics markets and the on-going customers’ inventory adjustment. Sales of advanced &specialty chemicals exceeded those of the previous year owing to a recovery in the epoxy resin curing agent(imidazoles) and resin modifier (glycoluril derivatives, etc.) markets and the increased demand accompanying this.
As for sales of semiconductor process materials, we saw progress in customer evaluations and the expansion of
new demand for prototype production.
As a result, net sales for the chemicals operations segment were ¥11,840 million (up 30.3% year-on-year) andsegment profit was ¥1,624 million (up 5.2% year-on-year), with both up on the previous year.
2) Housing Materials operations
In addition to the continued decline in the number of new housing starts, particularly for owned houses, due
to a surge in construction costs and other factors, the market for non-residential type constructions was alsosluggish owing to delays of construction period on the back of nationwide manpower shortages. Demand forinterior, exterior finishes and paving materials and exterior products also remained sluggish, all of which resulted
in sales down on the previous year.
As a result, net sales for the housing materials operations segment were ¥5,218 million (down 2.5% year-onyear) and segment profit was ¥692 million (down 11.1% year-on-year).

2

Reference information[Overseas net sales]
Three months ended March 31, 2023
(from January 1, 2023 to March 31, 2023)

Three months ended March 31, 2024
(from January 1, 2024 to March 31, 2024)

Net sales(Million yen)

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

Overseas net sales toconsolidated net sales (%)

Asia

1,342

9.1

1,966

11.3

North America

2,564

17.5

4,127

23.8

Other regions

374

2.5

428

2.5

Total
Consolidated net
sales

4,281

29.2

6,523

37.6

14,685

17,358(2) Explanation of Financial Position(Status of assets, liabilities and net assets)
Total assets decreased by ¥138 million from the end of the previous fiscal year to ¥130,908 million. Major
increases were ¥1,666 million in accounts receivable – trade and ¥847 million in construction in progress. Major
decreases were ¥3,060 million in cash and deposits and ¥519 million in machinery, equipment and vehicles.
Liabilities increased by ¥7,789 million from the end of the previous fiscal year to ¥51,967 million. Major
increases were ¥4,191 million in current portion of long-term borrowings and ¥2,175 million in notes andaccounts payable – trade, and a major decrease was ¥1,318 million in income taxes payable.
Net assets decreased by ¥7,927 million from the end of the previous fiscal year to ¥78,940 million. A major
decrease was ¥9,116 million in retained earnings.
As a result, equity ratio fell to 59.7% from 65.7% 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 revised from the initial plan (announced on January 30, 2024).
Assumptions for the exchange rates of major currencies are ¥140 to U.S. dollar and ¥150 to Euro.

3

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Electronically recorded monetary claims - operating
Accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of March 31, 2024

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

26,886607
3,262
15,57417,505
8,911
54
4,126
1,330
(3)
78,255

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

5,853
6,129
8,799
4,293
665
25,740658

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

22,605
2,079
530
1,038
(0)
26,25352,652130,908

(Million yen)
As of December 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Accrued expenses
Income taxes payable
Accrued consumption taxes
Notes payable - facilities
Electronically recorded obligations - facilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Provision for share awards
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of March 31, 2024

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

11,115
540
5,030
9,974
1,825
1,378
336
－
283
3,290
33,775

12,906
2,191
998

13,177
2,634
998

64

62

591
370
43
317
17,48344,178

582
371
48
317
18,192
51,967

6,867
5,711
66,077(226)
78,4306,867
5,711
56,961(237)
69,302

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

6,056
2,274
390
155
8,876
760
78,940130,908

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

Three months
ended March 31, 2023
14,6858,521
6,164

Three months
ended March 31, 2024
17,358
10,488
6,869

1,403
206
573
37

1,667
142
643
31

3

6

383
1,148
3,755
2,408

410
1,559
4,463
2,405

59
60
57
33
210

106
65
343
6
522

7
－
1
8
2,610

9
10
3
23
2,903

－
－

0
0

0
0
2,610
857
1,753
8
1,744

3
3
2,901
1,047
1,853
50
1,803

6

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 31(Million yen)

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

Three months
ended March 31, 2023
1,753

Three months
ended March 31, 2024
1,853

545
10
4
560
2,313

1,011
138
(0)
1,150
3,003

2,304

2,953

8

50

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 February 28, 2024 to purchase its treasury shares pursuant to the provisions of thearticles of incorporation, as set forth in Article 459, Paragraph 1 of the Companies Act, and purchased 5,891,100
shares of treasury shares. As a result, during the three months ended March 31, 2024, treasury shares increased by¥10,221 million.
(Cancellation of treasury shares)
The Company resolved on February 28, 2024 to cancel its treasury shares pursuant to the provisions in Article
178 of the Companies Act, and cancelled 5,891,100 shares of treasury shares on March 8, 2024. As a result, during
the three months ended March 31, 2024, retained earnings and treasury shares decreased by ¥10,209 million and¥10,209 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 multiplies profit
before income taxes for the quarter by the estimated effective tax rate.
Income taxes - deferred is included in income taxes.

8

(Segment information, etc.)
For the three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Reportable segment

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

Other
(Note) 1

Chemicals
operations

Housing
Materials
operations

3,310
3,659
2,114

–
–
–

3,310
3,659
2,114

–
–
–

3,310
3,659
2,114

–
–
–

3,310
3,659
2,114

–

323

323

–

323

–

323

–
–

5,028
–

5,028
–

–
242

5,028
242

–
–

5,028
242

9,084

5,351

14,436242

14,678–

14,678

–

–

–

6

6

–

6

9,084

5,351

14,436249

14,685–

14,685

2

0

3

72

75

(75)

–

9,087

5,352

14,439321

14,761(75)

14,685

Total

Total

Segment profit
1,543
778
2,322
38
2,361
47
2,408
(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 ¥47 million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

9For the three months ended March 31, 2024 (from January 1, 2024 to March 31, 2024)
1. Information on net sales and profit (loss) by reportable segment and information on composition of revenue(Million yen)Amount recorded inquarterly
Adjustment
consolidated(Note) 2
statement of income(Note) 3

Reportable segment

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

Other
(Note) 1

Chemicals
operations

Housing
Materials
operations

3,820
5,046
2,974

–
–
–

3,820
5,046
2,974

–
–
–

3,820
5,046
2,974

–
–
–

3,820
5,046
2,974

–

330

330

–

330

–

330

–
–

4,887
–

4,887
–

–
293

4,887
293

–
–

4,887
293

11,8405,218

17,059293

17,352–

17,352

–

–

–

5

5

–

5

11,8405,218

17,059298

17,358–17,358

1

0

1

77

79

(79)

–

11,842

5,218

17,060376

17,437(79)

17,358

Total

Total

Segment profit
1,624
692
2,316
44
2,361
44
2,405
(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 ¥44 million includes profit (loss) and others not allocated to eachreportable segment.
3. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

10