Summary of Consolidated Financial Statements for the First Quarter Fiscal 2019 (JPGAAP)
July 29, 2019
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL https://www.tokuyama.co.jp/eng/)
Local Code :4043
Representative:
Hiroshi Yokota, President and Representative Director
Contact:
Taro Kobayashi, General Manager, Corporate Communications & Investor Relations Dept.
+81-3-5207-2552
Scheduled date of dividends payout :Preparation of supplementary quarterly explanatory materials: Yes
Quarterly business results IR briefing to be held:
Yes (for institutional investors and analysts)
㻌

1. Consolidated results for fiscal first quarter ended June 30, 2019 (April 1, 2019 - June 30, 2019)(1) Performance

Note: All amounts are rounded down to the nearest million yen.
Net sales
Year-on(millions ofyear change
yen)
[%]

Operating profit
Year-on(millions ofyear change
yen)
[%]

Ordinary profit
Year-on(millions ofyear change
yen)
[%]

First Quarter Fiscal 201976,4650.8
7,026(20.9)
6,298(27.4)First Quarter Fiscal 201875,825(4.6)
8,883( 4.6)
8,677
11.9(Note) Comprehensive income: 1st Q FY19: 3,951 million yen [ (34.8) %] 1st Q FY18: 6,056 million yen [ - %]Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]First Quarter Fiscal 2019
First Quarter Fiscal 2018

4,859
(6,658)(27.0)-

Total assets

Net assets(millions of yen)(millions of yen)

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

69.97
(_95.73)-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

Jun 30, 2019
Mar 31, 2019375,314
165,648379,630
163,525
Jun 30, 2019: 154,933 million yen(Reference) Shareholders' equity:

41.3
2,230.75
40.2
2,199.83
Mar 31, 2019: 152,781 million yen

2. Dividends㸦Period㸧

1st quarter(yen)

Annual dividends per share
2nd quarter 3rd quarter
Year-end(yen)

Fiscal 2018, ended
25.00
Mar 31, 2019
Fiscal 2019, ending
Mar 31, 2020
Fiscal 201935.00
㸦Forecast㸧(Note) Revision of the latest dividends forecast: No

(yen)

Total

(yen)

(yen)

-

25.00

50.00

-

35.00

70.00

3. Consolidated performance forecast for fiscal 2019 (April 1, 2019 - March 31, 2020)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating profit Ordinary profit Profit
per shareowners of parent(millions of
yen)

[%]

(millions of
yen)

[%]

(millions of
yen)

[%]

Fiscal 2019
343,000
5.7
39,000 10.6
39,000 16.8
(Note) Revision of the latest consolidated performance forecast: No

1(millions of
yen)

[%]

30,500  (11.0)(yen)

438.88

*Notes(1) Changes in significant subsidiaries during this period: No(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (4) Notes on
Quarterly Consolidated Financial Statements (Change in accounting process specific to preparing quarterly
consolidated financial statement)” on page 11 of the Accompanying Materials to this Summary of Quarterly
Consolidated Financial Statement.

(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes of accounting policies by revision of accounting standards:
ii. Changes of accounting policies other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:

No
No
No
No

(4) Number of shares issued (in common stock)i.

Number of shares issued at end of period(including treasury stock):ii.

Number of treasury stock at end of period:iii. Average number of shares over period:First Quarter
Fiscal 2019:
First Quarter
Fiscal 2019:
First Quarter
Fiscal 2019:69,934,375

Fiscal 2018:

69,934,375

480,862

Fiscal 2018:

482,765

69,452,147

First Quarter
Fiscal 2018:

69,555,356(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures in linewith the Financial Instruments and Exchange Act. At the point of disclosure of this summary of quarterly
consolidated financial statements, the quarterly consolidated financial statements review procedures in line with the
Financial Instruments and Exchange Act are underway.

(Note) Cautions pertaining to appropriate use of performance forecast and other particular items(Cautions related to Forward-looking statement)
The performance forecast and other forward-looking statements contained in this material have been prepared on
the basis of information available at this point and certain assumptions which are judged to be rational, and may
be substantially different from the actual performance because of various factors that may arise from now on.

2

Contents for Accompanying Materials
1. Qualitative information on consolidated results for this quarter…………………

P. 2(1) Explanation concerning business results…………………

P. 2(2) Explanation concerning financial position…………………

P. 6…………………

P. 6

2. Quarterly Consolidated Financial Statements…………………

P. 7(1) Quarterly Consolidated Balance Sheets…………………

P. 7(2) Quarterly Consolidated Statements of Income…………………

P. 9(3) Quarterly Consolidated Statements of Comprehensive Income…………………

P. 10(4) Notes on Quarterly Consolidated Financial Statements…………………

P. 11(5) Segment Information…………………

P. 12(3) Explanation concerning information related to future
prediction such as consolidated performance forecast

11. Qualitative information on consolidated results for this quarter(1) Explanation concerning business results
Consolidated results for the first quarter fiscal 2019 (April 1, 2019 - June 30, 2019) aresummarized as follows:(Unit: Millions of yen)
Net sales

Operating profit

Ordinary profit

Profit attributableto owners ofparentFirst Quarter Fiscal 201976,465

7,026

6,298

4,859

First Quarter Fiscal 201875,825

8,883

8,677

6,658

0.8

(20.9)(27.4)(27.0)

Rate of change (%)

Net sales
Consolidated net sales increased 0.8%, or ¥640 million compared with the corresponding periodof the previous year, to ¥76,465 million. Despite weak sales of semiconductor-related and othermainstay products, this increase was largely attributable to the inclusion of a subsidiary in the
Company’s scope of consolidation in July, 2018.
Cost of sales
Cost of sales increased 3.1%, or ¥1,590 million compared with the corresponding period of theprevious year, to ¥53,343 million. This was due mainly to a upturn in raw material and fuel costs
as a result of the increase in coal prices.
SG&A expenses
SG&A expenses increased 6.0%, or ¥906 million compared with the corresponding period of
the previous year, to ¥16,095 million. In addition to the increase in advertising expenses
associated with the release of new products to the market, this increase largely reflected theupswing in personnel expenses attributable to the inclusion of a subsidiary in the Company’s
scope of consolidation in July, 2018.
Operating profit
Operating profit decreased 20.9%, or ¥1,857 million compared with the corresponding period of
the previous fiscal year, to ¥7,026 million. This was largely attributable to a weak sales volume inmajor products.

2

Non-operating income/expenses, Ordinary profit
Non-operating income/expenses deteriorated by ¥521 million compared with the corresponding
period of the previous fiscal year.
As a result of the above, ordinary profit decreased 27.4%, or ¥2,378 million compared with thecorresponding period of the previous fiscal year, to ¥6,298 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved by ¥90 million compared with the corresponding periodof the previous fiscal year.
As a result of the above, profit before income taxes decreased 27.1%, or ¥2,288 million
compared with the corresponding period of the previous fiscal year, to ¥6,158 million.
Profit after deducting income taxes calculated in an appropriate way decreased 28.0%, or ¥1,919
million compared with the corresponding period of the previous fiscal year, to ¥4,929 million.
Profit attributable to owners of parent decreased 27.0%, or ¥1,799 million compared with thecorresponding period of the previous fiscal year, to ¥4,859 million.

3

(Operating results by segment)
Tokuyama changed the management categorizations of a certain subsidiary effective from the first quarter of the
fiscal year under review. Data for the corresponding period of the previous fiscal year has been adjusted to reflect
this change to enable the year-on-year comparison presented as follows.

Sales(Unit: Millions of yen)

Others

Total

Adjustment

Figures inquarterly
consolidated
profitstatement

13,513

15,811

87,216(10,751)

76,46522,172

12,655

12,711

85,664(9,839)75,825

(3.1)

6.8

24.4

1.8

-

0.8

Reportable segment

First Quarter
Fiscal 2019
First Quarter
Fiscal 2018
Rate of change (%)

Chemicals

Specialty
Products

Cement24,292

12,11821,48025,11913,005

(3.3)

(6.8)

Life &
Amenity

Operating profit(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
profitstatement

7,741

(715)

7,026

942

9,479

(595)

8,883

(0.0)

(18.3)-(20.9)

Reportable segment

First Quarter
Fiscal 2019
First Quarter
Fiscal 2018
Rate of change (%)

OthersChemicals

Specialty
Products

Cement

3,868

1,598

666

665

942

4,896

1,922

870

847

(21.0)(16.8)(23.4)(21.4)

Life &
Amenity

Total(Note) Sales and operating profit in each segment include inter-segment transactions.

Chemicals
Caustic soda earnings declined. Despite firm sales volume trends, this downturn in earnings waslargely due to the increase in raw material and fuel prices coupled with a deterioration in overseas
market conditions.
Vinyl chloride resin earnings increased on the back of efforts to maintain selling prices.
Propylene oxide earnings decreased owing to a drop in sales volume for use in automotive parts.
Calcium chloride earnings declined. This largely reflected weak sales volume and an increase inlogistics costs.
As a result of the above, segment net sales decreased 3.3% compared with the corresponding
period of the previous fiscal year, to ¥24,292 million and operating profit decreased 21.0% to¥3,868 million. The segment reported lower earnings on lower sales.

4Specialty Products
Semiconductor-grade polycrystalline silicon and thermal management material results were in linewith the corresponding period of the previous fiscal year owing to firm sales trends.
Earnings from high-purity chemicals for electronic manufacturing declined. This was due to adownturn in sales volume targeting the semiconductor industry.
As a result of the above, segment net sales decreased 6.8% compared with the corresponding
period of the previous fiscal year, to ¥12,118 million and operating profit decreased 16.8% to¥1,598 million. The segment reported lower earnings on lower sales.
CementCement earnings decreased. Despite the partial positive flow on effects of a revision to selling
prices, this decrease was largely due to weak shipping trends in Japan.
In the resource recycling business, its business result was almost same as the corresponding
period of the previous fiscal year.
Consolidated subsidiary net sales decreased. This mainly reflected the weak shipping trends of
cement-related products.
As a result of the above, segment net sales decreased 3.1% compared with the corresponding
period of the previous fiscal year, to ¥21,480 million and operating profit decreased 23.4% to¥666 million. The segment reported lower earnings on lower sales.
Life & Amenity
Earnings from plastic lens-related materials increased on the back of the robust shipping trendsof photochromic materials for eyeglass lenses.
Dental materials earnings decreased. Despite an increase in sales volume mainly overseas, thisdecrease was mainly due to the increase in advertising expenses associated with the release of
new products to the market.
Sales of medical diagnosis systems increased. This largely reflected successful efforts to capture
large-scale laboratory automation system projects in Japan.
As a result of the above, segment net sales increased 6.8% compared with the corresponding
period of the previous fiscal year, to ¥13,513 million and operating profit decreased 21.4% to¥665 million. The segment reported lower earnings on higher sales.

5(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2019, total assets amounted to ¥375,314 million, an decrease of ¥4,315 million
compared with those as of March 31, 2019.
This decrease primarily reflects the decrease of notes and accounts receivable - trade of ¥8,979
million, despite the increase of merchandise and finished goods, cash and deposits, and land of¥2,352 million, ¥1,467 million, and ¥1,034 million, respectively.
Total liabilities amounted to ¥209,666 million, down ¥6,438 million compared with those as ofMarch 31, 2019.
The principal factors are a decrease in income taxes payable, long-term loans payable and current
portion of long-term loans payable, and provision for bonuses of ¥2,536 million, ¥1,949 million,and ¥1,007 million, respectively.
Net assets totaled ¥165,648 million, an increase of ¥2,123 million compared with those as ofMarch 31, 2019.
This mainly reflected the increase of retained earnings of ¥3,120. This was primarily due toposting profit attributable to owners of parent, despite decrease due to the payment of dividend.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Although the future business environment is uncertain because of the fluctuations in exchange
rate and raw material and fuel prices, the Company’s results were in line with our expectations at
this time. Therefore, the Company has not revised the performance forecasts, announced on
April 26, 2019.
The performance forecast has been prepared on the basis of information available at this pointand certain assumptions which are judged to be rational, and may be substantially different fromthe actual performance because of various factors that may arise from now on.

6

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
6/30/2019

3/31/2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

68,61380,35830
16,4589,554
17,462
10,554△94
202,936

70,08071,37830
18,8108,965
17,06911,044△88
197,291

106,214△76,233
29,981
459,535△414,813
44,721
22,106△19,905
2,201
32,296
4,548△2,2372,311
4,592
116,104

106,690△76,668
30,021
460,083△416,061
44,022
22,102△19,899
2,202
33,331
4,598△2,331
2,266
5,294
117,138

208
71
1,693
1,973

58
65
1,655
1,779

21,7182,444
21,091
9,796
3,621
△57
58,614
176,693379,630

20,7302,440
21,945
10,277
3,768△57
59,105
178,022375,314

3/31/2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for repairs
Provision for product warranties
Provision for loss on compensation for damage
Provision for restructuring
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors (and other officers)
Provision for share-based remuneration
Provision for repairs
Provision for decommissioning and removal
Allowance for loss on compensation for building materials
Provision for environmental measures
Retirement benefit liability
Asset retirement obligations
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
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

8(Millions of yen)
6/30/201947,268
4,361
12,667
758
3,816
2,664
3,569
137
91
233
17,68093,24847,0793,465
12,696
752
1,279
1,657
3,763
74
91
222
16,87087,953

109,411
1,767
220
224
48
1,546
－
260
222
2,149
6
6,999
122,856
216,104

107,432
1,725
173
222
62
2,013
550
243
222
2,176
6
6,882
121,712
209,666

10,00020,018
121,901△1,823150,095

10,00020,018125,022△1,817
153,222△1,566
△61
1,672
2,640
2,685
10,743
163,525
379,630△1,806
△54
1,009
2,561
1,710
10,715
165,648375,314(2) Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Outsourcing service income
Dividends Income Of Group Term Insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Provision for decommissioning and removals
Fiduciary obligation expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Gain on insurance claims
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on disaster
Loss on disposal of non-current assets
Litigation expenses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

Q1 FY201875,82551,752
24,072(Millions of yen)
Q1 FY201976,46553,34323,121

10,033
5,155
15,188
8,883

10,633
5,461
16,095
7,026

18
232
204
436
181
710
1,783

89
191
247
421
211
564
1,725

801
－
415
－
772
1,989
8,677

443
550
434
284
741
2,453
6,298

5
－
44
50

4
12
－
16

－
－
148
132
281
8,446
1,597
6,849
190
6,658

15
13
127
－
156
6,158
1,228
4,929
69
4,859

(3) Consolidated Statements of Comprehensive Income

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
Share of other comprehensive income of entities accounted for using equity
methodTotalother comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

10

Q1 FY2018
6,849(Millions of yen)
Q1 FY2019
4,929

△447
7
△174
△59
△118
△793
6,056

△232
6
△646
△78
△27
△978
3,951

5,866
190

3,884
67

(4) Notes on Quarterly Consolidated Financial Statements(Change of Accounting Process Specific to Preparing Quarterly Consolidated Financial Statement)(Calculation of Tax Expense)
The Company rationally estimated the effective tax rate after the application of accounting policy
for deferred tax, which was applied to the profit/loss before income tax for the fiscal year underreview including the first quarter consolidated accounting period for the fiscal year ending March
31, 2020, and calculated the tax expense by multiplying the estimated effective tax rate to the
profit/loss before income tax. However, if the application of said estimated effective tax rate
reduces the rationality of the calculation of tax expense, the Company applies the effective
statutory tax rate.

11

(5) Segment information
First Quarter Fiscal 2018 (April 1, 2018 – June 30, 2018)
1. Information on sales and profit by reportable segment(Millions of yen)
Reportable segments

Sales
Sales to customers
Inter-segment sales/transfer
Total
Segment profit

Chemicals

Specialty
Products

Cement24,952
166
25,1194,896

10,013
2,992
13,005
1,922

21,969202
22,172870

Life &
Amenity

12,084571
12,655847

Others*1

6,805
5,905
12,711
942

Total

75,825
9,839
85,664
9,479

Adjustment*2

Figures inquarterly
consolidated
profitstatement*3(9,839)(9,839)(595)

75,82575,8258,883*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment profit adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment and the amount of inter-segment eliminations.
*3 With regard to segment profit, operating profit in the quarterly consolidated statement of profit has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others”
segment’s profit.

First Quarter Fiscal 2019 (April 1, 2019– June 30, 2019)
1. Information on sales and profit by reportable segment(Millions of yen)
Reportable segments

Sales
Sales to customers
Inter-segment sales/transfer
Total
Segment profit

Chemicals

Specialty
Products

Cement24,114
178
24,292
3,868

9,065
3,053
12,118
1,598

21,256
224
21,480666

Life &
Amenity

13,053459
13,513
665

Others*1

8,975
6,835
15,811
942

Total

76,465
10,751
87,216
7,741

Adjustment*2

Figures inquarterly
consolidated
profitstatement*3(10,751)(10,751)(715)

76,46576,465
7,026*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution c ompany, a real estate business, etc.
*2 The segment profit adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment and the amount of inter-segment eliminations.
*3 With regard to segment profit, operating profit in the quarterly consolidated statement of profit has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others”
segment’s profit.
2䠊Changes in reportable segments
In accordance with the change in management categorizations of a certain subsidiary implemented from the firstquarter of the fiscal year under review, a certain subsidiary previously included in the Others segment have now
been included in the Life & Amenity segment.
Segment information for the corresponding period of the previous fiscal year has been prepared in accordance withthis change.

12