From9ｔｈ Fiscal Year （ toApril 1，2014
March 31，2015）

Consolidated Financial Statements
Semi-Annual（From April 1，2014）
to September 30，2014

Consolidated Subsidiaries:
Covalent Materials Tokuyama Corporation
Covalent Materials Nagasaki Corporation
Covalent Materials USA Inc.
Covalent Machinery Corporation
Denko Co., Ltd.

Consolidated Balance Sheet(as of September 30, 2014)(Thousands of Yen)

AssetsLiabilities

Current Assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Advance payments-trade
Accounts receivable-otherPrepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts

21,430,639
5,044,941
6,181,460
7,491,135
103,184
297,398
583,099
1,577,569
155,046(3,197)

Current Liabilities
Notes and accounts payables-trade
Lease obligations
Accounts payable-facilities
Accounts payable-other
Income taxes payable
Accrued expenses
Provision for directors' bonuses
Other

5,418,201
2,573,547
141,126
234,861
568,428
258,050
1,071,819
19,157551,210

Noncurrent Assets
Property, plant and equipment
Buildings and structures
Machinery,equipment and vehicles
Tools, furniture and fixtures
Land
Lease assetsConstruction in progress
Intangible assets
Goodwill
OtherInvestments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
OtherAllowance for doubtful accounts

33,340,005
23,724,157
10,049,409
4,589,576
180,169
7,949,655
639,788
315,558
8,404,869
8,325,255
79,614
1,210,978
181,751
76,227347,290
691,198(85,489)

Noncurrent Liabilities
Bonds payable
Lease obligations
Net defined benefit liability
Provision for directors' retirement benefits
Asset retirement obligations
Deferred tax liabilities
Other

32,518,262
23,529,000
523,886
3,941,717
1,115
226,7632,469,654
1,826,126

Total Liabilities

37,936,464
Net Assets

Shareholders Equity
Capital stock
Capital surplus
Retained earnings
Valuation and translation adjustments
Valuation difference on available-for-sale securities

Foreign currency translation adjustment
Remeasurements of defined benefit plans
Minority Interests

Total Assets

54,770,645

16,364,588
34,942,693
40,268,632(58,846,738)(359,172)
1,549
161,315(522,037)
828,765

Net Assets

16,834,181

Total liabilities and net assets

54,770,645※ An audit report has not yet been received for the financials noted above

Consolidated Statement of Income(from April 1, 2014 to September 30, 2014)(Thousands of Yen)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Amortization of negative goodwill
Other
Non-operating expenses
Interest expenses
Other
Ordinary income
Extraordinary income and loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Income before minority interests
Minority interests in income
Net income

16,240,201
10,694,034
5,546,166
3,274,203
2,271,963
2,024
26,24390,464850,249
115,098

174,781(191,961)※ An audit report has not yet been received for the financials noted above

118,733

965,348
1,425,347
340,947
1,766,295(17,180)
1,783,475
3,714
1,779,761

Consolidated Statement of Cash Flows(from April 1, 2014 to September 30, 2014)(Thousands of Yen)

CategoryⅠⅡ

Net cash provided by operating activities
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Interest expenses
Decrease (increase) in notes and accounts receivable-tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other,net
Subtotal

1,766,295
1,104,906
333,010850,249(98,516)
218,816(315,727)(736,991)
3,122,042

Interest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

14,943(604,857)(319,210)
2,212,918

Net cash provided by investing activities
Proceeds from sales of property, plant and equipment
Other,net
Net cash provided by investing activities

Ⅲ818,592(559,679)
258,913

Net cash provided by financing activities
Repayment of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Other,net
Net cash provided by financing activities※Amount(1,488,000)(1,771,000)(79,255)(36,293)(3,374,548)

ⅣⅤ

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

40,550(862,166)

ⅥⅦ

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

5,805,507
4,943,341

Difference in cash and cash equivalents from balance sheetCash and deposits at end of period (balance sheet)
Time deposits with terms extending over 3 months
Cash and cash equivalents at end of period (cash flow statement)※ An audit report has not yet been received for the financials noted above

5,044,941
101,600
4,943,341