SHIKOKU KASEI HOLDINGS CORPORATION

During the period, the Shikoku Kasei Holdings Group operated around its core Chemicals and Building Materials businesses. The Chemicals business covers 3 areas: inorganic chemicals, organic chemicals and fine chemicals. Products include insoluble sulfur, used as a raw material for radial tires; carbon disulfide, used in rayon and cellophane; anhydrous sodium sulfate, used in bath additives and synthetic detergents; chlorinated isocyanuric acids, which performed steadily in the domestic market; GliCAP electronic chemicals materials; epoxy resin curing agents (imidazoles); and resin modifiers (including glycoluril derivatives). In the fine chemicals area, the Group continued to develop and supply electronic chemicals materials and high-performance materials, while demand for semiconductor process materials and other products also expanded. In the Building Materials business, the Group pursued sales expansion in the non-residential sector and new areas despite high construction costs and a downward trend in new housing starts. Profit improved despite the impact of higher raw material prices and logistics costs. Under its long-term vision, “Challenge 1000,” the Group has set targets for 2030 of ¥100 billion in net sales, ¥15 billion in operating profit and ROE of at least 10%. Capital investments include the completion of a new insoluble sulfur plant at the Marugame Plant (investment of approximately ¥4.5 billion), construction of a new experimental facility and office building at the Tokushima Plant (investment of ¥2.2 billion), expansion of fine chemicals production facilities at 増田化学工業 (investment of approximately ¥2.2 billion), construction of a new R&D center (investment of approximately ¥6.6 billion), and the start of construction of a new Sakaide Plant (investment of ¥15 billion to ¥20 billion). Since 1 January 2023, the Group has operated under a holding company structure and has been advancing the delegation of authority and integration of functions. In July 2026, it plans to establish the corporate venture capital (CVC) fund “SHIKOKU Innovation Fund” with a scale of ¥1 billion jointly with JMTC Capital G.K., with an investment period from July 2026 to June 2036. The fund will invest in chemical, building materials and materials-related technologies in the Group’s core areas, as well as technologies and business fields expected to generate synergies. During the interim period ended 2025, the Group acquired shares of PT Timuraya Tunggal and included that company and its subsidiary PT Pradipa Persada in the scope of consolidation. The acquired companies’ reportable segment is classified as the “Chemicals Business.”