Q3 FY2015 - Apr 1, 2015 to Dec 31, 2015 -Presentation for IR Meeting
January 29, 2016

CONTENTS
1 Financial Results for Q3 FY2015
2 Revised Performance Forecasts for FY2015
3 Tokuyama Malaysia
4 Future Course of Action
5 Progress of Medium-Term Management Plan 2017
6 Supplementary Data2

1 Financial Results for Q3 FY2015

1. Financial Highlights
2. Net Sales / Operating Income
by Business Segment
3. Changes in Operating Income

3

1

Financial Results for Q3 FY2015

1. Financial Highlights Consolidated (year-on-year change)(Billions of yen)

Net sales
Operating income
Ordinary income
Profit (loss)

attributable to owners of parent
Basic earnings per share (yen)Exchange rate (¥/$)
Domestic naphtha price (¥/kl)

Difference
AmountQ3 FY2014 YTD

Q3 FY2015 YTD

222.0
15.8
11.0

226.6
12.9
9.3

+4.6
(2.9)
(1.6)

+2
(18)
(15)

(78.8)(115.8)(36.9)-(226.73)107
68,900(332.91)122
45,700%Qualitative information(Net sales) ¥226.6 billion, up 2%
Pluses: increased sales volume of soda ash and calcium chloride as well as solar-grade polycrystalline silicon
Minus: weak selling prices of petro chemicals on the back of downturn in domestic naphtha prices(Operating income) ¥12.9 billion, down 18%
Plus:
improved profitability owing to drop in raw material cost arising from domestic naphtha price down and the weaker yen
Minus: increased depreciation expenses at Tokuyama Malaysia
4

1

Financial Results for Q3 FY2015

1. Financial Highlights Consolidated (year-on-year change)(Billions of yen)

Net sales
Operating income
Ordinary income
Profit (loss)

attributable to owners of parent
Basic earnings per share (yen)Exchange rate (¥/$)
Domestic naphtha price (¥/kl)

Difference
AmountQ3 FY2014 YTD

Q3 FY2015 YTD

222.0
15.8
11.0

226.6
12.9
9.3

+4.6
(2.9)
(1.6)

+2
(18)
(15)

(78.8)(115.8)(36.9)-(226.73)107
68,900(332.91)122
45,700%Qualitative information(Ordinary income) ¥9.3 billion, down 15%
Plus:change from foreign exchange losses recorded in the corresponding period of the previous year to foreign exchange gains
Minus: decreased operating income(Loss attributable to owners of parent) loss of ¥115.8 billion (deficit expansion)
Pluses: posting of gains from the sale of non-current assets and the sales of investment securities
Minus: posting of impairment loss on the polycrystalline silicon manufacturing facilities of Tokuyama Malaysia
5

1Financial Results for Q3 FY2015

1. Financial Highlights Consolidated (compared with the previous fiscal year-end)(Billions of yen, except Shareholders’ equity ratio and D/E ratio)

Total assets
Shareholders’ equity
Shareholders’ equity ratio
Interest-bearing debt
D/E ratio
Net D/E ratio*
Net assets per share (yen)As of Mar 31, 2015

As of Dec 31, 2015

Changes

554.5
162.5
29.3%
283.1
1.74

412.2
43.3
10.5%
257.7
5.95

(142.2)(119.2)(18.8pts)(25.4)
+4.21

1.03

3.33

+2.30

467.36124.51

Qualitative information*Net D/E ratio: (Interest-bearing debt – Cash and deposits, Cash equivalents)/Shareholders’ equity(Total assets)
Decrease factor: decrease in property, plant and equipment resulting from the impairment of polycrystalline silicon manufacturing
facilities of Tokuyama Malaysia(Shareholders’ equity)
Decrease factor: decrease in retained earnings associated with posting of net loss attributable to owners of parent(Interest-bearing debt)
Decrease factor: decrease in long-term loans payable and bond6

1Financial Results for Q3 FY2015

2. Net Sales/Operating Income by Business Segment(Year-on-year change)(Billions of yen)

Q3 FY2014 YTD

Q3 FY2015 YTD

Difference

Net sales

OperatingincomeNet sales

OperatingincomeNet sales

Chemicals

68.1

3.8

66.1

5.6

(1.9)

(3)

+1.8

+48

Specialty Products

38.4

3.6

40.8

(3.7)

+2.3

+6

(7.4)

-

Cement

60.3

3.5

64.9

4.1

+4.5

+8

+0.6

+17

Life & Amenity

43.8

3.6

43.3

4.9

(0.5)

(1)

+1.3

+36

Others

38.3
249.1

4.4
19.0

40.5
255.8

4.0
15.0

+2.2

+6

(0.3)

(8)

+6.7

+3

(4.0)

(21)

Inter-segment eliminations
and corporate-wide
expenses(27.0)(3.1)(29.2)

(2.0)

(2.1)

-

+1.0

-

Consolidated results

222.0

15.8

226.6

12.9

+4.6

+2

(2.9)

(18)

(8.9)

+4.1

+257

(7.0)

Total

Operatingincome%%(Note) Sales and operating income shown above include inter-segment transactions.

(Reference)

Tokuyama Malaysia
7

1.6

(1.8)

5.7

-

1

Financial Results for Q3 FY2015

3. Changes in Operating Income
By Business Segment(Year-on-year change)(Billions of yen)

•Improved profitability of petrochemicals (+)•Weak trend of selling price of caustic soda (-)•Deteriorated earnings due chiefly to increased
depreciation cost at Tokuyama Malaysia (-)

15.8

+1.8

+3.0

•Increase in sales volume of medical diagnosis system (+)•Decreased sales volume of active pharmaceutical ingredients (-)

(7.4)

12.9
+0.7
+1.3

+1.0

+0.6

•Accepted higher volume ofwaste (+)

Q3 FY2014
YTD
8

Chemicals

Specialty
Products

CementLife &
Amenity

Corporate
and others

Q3 FY2015
YTD

2 Revised Performance Forecasts

for FY2015
1. Revised Performance Forecasts
2. Revised Performance Forecasts
by Business Segment

92

Revised Performance Forecasts for FY2015

1. Revised Performance Forecasts

Consolidated(compared with the previous forecast)(Billions of yen)

Net sales
Operating income
Ordinary income
Profit (loss)

attributable to owners of parent

Basic earnings (loss)
per share (yen)Exchange rate (¥/$)
Domestic naphtha price (¥/kl)

FY2015Previous forecast

FY2015
Revised forecast(Oct 30, 2015)(Jan 29, 2016)

306.0
20.0
15.0
(103.0)40.25(296.1)(332.91)

121
44,000121
43,900122
45,700(Operating income) Not revised(Ordinary income)Plus:
improved non-operating income/expenses

0.0
0.0
+1.0
(117.0)Q3 FY2015 YTD
Results

306.0
20.0
14.0
14.0

Reasons for the revision:(Net sales) Not revised

10

Difference

226.6
12.9
9.3
(115.8)(Profit (loss) attributable to owners of parent)
Pluses: posting of gains from the sale of non-current assets
and the sales of investment securities

Minus:

posting of impairment loss on the polycrystalline
silicon manufacturing facilities of Tokuyama Malaysia

2Revised Performance Forecasts for FY2015

2. Revised Performance Forecasts by Business Segment(Compared with the previous forecast)(Billions of yen)

FY2015Previous forecast

FY2015
Revised forecast(Oct 30, 2015)(Jan 29, 2016)

Net sales

OperatingincomeNet sales

OperatingincomeChemicals
Specialty Products
Cement

87.0
63.0
84.0

7.5
(1.5)
6.0

87.0
62.0
84.0

8.0
(1.5)
5.5

Life & Amenity

58.0

6.0

58.0

Others

55.0
347.0

5.0
23.0

Inter-segment eliminations
and corporate-wide
expenses(41.0)

Consolidated Results

306.0

Total

Q3 FY2015 YTD
Results

Difference
Net sales

Operatingincome

0.0

+0.5

(1.0)

0.0

0.0

6.0

55.0
346.0

5.0
23.0

(3.0)

(40.0)

20.0

306.0

Net sales

Operatingincome

(0.5)

66.1
40.8
64.9

5.6
(3.7)
4.1

0.0

0.0

43.3

4.9

0.0

0.0

(1.0)

0.0

40.5
255.8

4.0
15.0

(3.0)

+1.0

0.0

(29.2)

(2.0)

20.0

0.0

0.0

226.6

12.9

(10.8)

(1.2)

+0.4

5.7

(8.9)

(Note) Sales and operating income shown above include inter-segment transactions.
(Reference)

Tokuyama Malaysia
11

9.6(11.2)

8.4

3 Tokuyama Malaysia

1. Impairment Loss on the Polysilicon
Plant at Tokuyama Malaysia
2. Current Status and
Schedule Going Forward

12

3

Tokuyama Malaysia

1. Impairment Loss on the Polysilicon Plant at Tokuyama Malaysia
Taking into consideration the downturn in solar-grade polycrystalline silicon market conditions, which has triggered adeterioration in the business environment, together with the conditions of plant operation following periodic
maintenance at Tokuyama Malaysia’s polycrystalline silicon plant conducted from October to November 2015, steps
were taken to review the plant’s medium- to long-term business plan and to reexamine the likelihood of recouping theCompany’s investment going forward. As a result, Tokuyama posted an impairment loss of ¥123.4 billion as aconsolidated extraordinary loss during the third quarter of the fiscal year ending March 31, 2016.
*The book value of the plant after posting the impairment loss was ¥9.4 billion.
*Cash flows for this fiscal year are unaffected by the posting of the impairment loss.

Underlying Assumptions of the Tokuyama Malaysia Business Plan

13

Medium-Term Management Plan 2017

Revised Plan

Spot price

US$16 - 20/kg

US$13.5 - 15/kg

Sales qty (average)

12,000 tonnes / year

11,000 tonnes / year

Exchange rate (¥/US$)

115

120

Exchange rate (¥/MYR)

35

28

3

Tokuyama Malaysia(Ref.) Polysilicon Spot Price Trend (Apr 2012 -)(US$/KG)

30
28
26

Oct 2014 Commenced operations at second plant (PS-2)

100
90
80
70
60
50
40
30
20
10
2009/7/1 2010/7/1 2011/7/1 2012/7/1 2013/7/1 2014/7/1 2015/7/1

24
22
20
18
16

14
12

Lowest price up to 2014$15.35 (Dec 2012)10
2012/4/4 2012/8/4 2012/12/4 2013/4/4 2013/8/4 2013/12/4 2014/4/4 2014/8/4 2014/12/4 2015/4/4 2015/8/4 2015/12/4
Source: PV insights

14

3

Tokuyama Malaysia

2. Current Status and Schedule Going Forward
FY2016(ending Mar-17)

FY2017(ending Mar-18)

Oct to Nov 2015 - Periodic
maintenanceDec 2015 - Restart

Implement cost reduction

Achieve profitable
operations

Sales Qty: 5,000 tonnes

Sales Qty: 8,000 tonnes

Sales Qty: 11,000 tonnes

FY2015 (ending Mar-16)
P
S
1
P
S
2

Consider promoting
effective use

Tokuyama Malaysia Second Plant (PS-2)

Location：Samalaju Industrial Park, Sarawak, Malaysia
Product to be manufactured: Solar-grade Polysilicon
Annual production capacity: 13,800 tonnes
Production method: Siemens method
15

FY2018(ending Mar-19)

Sales Qty: 11,000 tonnes

4 Future Course of Action

1. Financial Platform Rebuilding Plan
2. Decision to Forgo a Portion of
the Compensation Payable
to Executives and Future Courseof Action

16

4

Future Course of Action

1. Financial Platform Rebuilding Plan
Infringements of Certain Loan Agreement Financial Covenants
・Steps taken to approach the relevant financial institutions and to request that the Company be exempted from certain
loan agreement financial covenants, where infringements are likely at the end of this fiscal year following the posting ofan extraordinary loss, and to obtain approval to continuous transactions and avoid possible infringements
・Steps also taken to confirm that the Company has secured ample cash-in-hand to fund its working capital needs andscheduled debt repayments as well as the ability to procure funds on a stable basis

About the Company’s Financial Platform Rebuilding Plan and Capital Policy Going Forward
・Consider initiatives aimed at ensuring a recovery in net assets from various angles while consulting with the relevant
financial institutions and other concerned parties
・Reexamine the Company’s capital policy going forward including the structure of liabilities and capital in light of suchfactors as the identified extraordinary loss, review of the Medium-Term Management Plan and recent businessenvironment

Tokuyama continues to receive the full support of its financial institutions
including main bank, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
17

4

Future Course of Action

2. Decision to Forgo a Portion of the Compensation
Payable to Executives and Future Course of Action
About the Return of Executive Compensation
Tokuyama takes most seriously the posting of substantial losses for two consecutive periods and the anticipatedsubstantial damage to its shareholders’ equity. Accordingly, the decision by the Company executives to voluntarily
waive (return) a portion of their compensation until June 2016 has been made.
Details of the decision by executives to voluntarily waive (return) a portion of their compensation:
Chairman, President: Voluntarily waive (return) 50% of their annual compensation
Other executive officers and deputy executive officers: Voluntarily waive (return) 30% of their annual compensation

Establishment of a Committee to Investigate the Causes behind the Impairment Loss
Set up a committee that includes members from outside the Company to reexamine investments in the second
polycrystalline silicon plant (PS-2) of consolidated subsidiary Tokuyama Malaysia and to investigate and identify thecauses behind the impairment loss; look to apply the committee’s investigation results and findings in future
operations and business management

Review of the Medium-Term Management Plan
Undertake a review of the Medium-Term Management Plan, put in place in July 2015, after incorporating changes
in Tokuyama Malaysia’s business plan; plans to release details at the time of the announcement of theCompany’s financial results for full fiscal 2015
We sincerely ask for the continued support and understanding of all stakeholders including shareholders andinvestors.
18

5 Progress of Medium-Term

Management Plan 201719

5Progress of Medium-Term Management Plan 2017

Initiatives Aimed at Strengthening Business Profitability
Exhaustive use of assets•Completed preparatory steps to recommence operations at idle polycrystalline silicon manufacturing facilities of Tokuyama Factory(Operations scheduled to commence in FY2016)

Customer-oriented growth•Decision by Yamaguchi Liquid Hydrogen Corporation, a joint venture engaged in the production of liquid hydrogen, to double its
production capacity in response to the anticipated upswing in hydrogen demand (increased operations scheduled to commence inNovember 2017)•Decision to install trial facilities of boron nitride developed as a new heat sink material used for power semiconductor devices and tocommence sample work for customers (operations scheduled to commence in FY2016)

Rebuilding the Company’s financial platform•Plans to post extraordinary income of approx. ¥12.5 billion and an inflow of cash of approx. ¥17.0 billion by the end of this fiscal year
due to the sale of non-current assets including the Shibuya Konno Building•Posted extraordinary income of ¥3.3 billion during the third quarter of this fiscal year due to the sale of a portion of investment
securities; plans to further sell investment securities from the fourth quarter of this fiscal year on•Reduced the balance of interest-bearing debt by ¥25.4 billion compared with the previous fiscal year-end (as of December 31, 2015)•Curtailed cash outflows (overhead expenses down ¥0.3 billion, personnel expenses down ¥1.7 billion) * 3Q cumulative, Y-Y change
20

6 Supplementary Data
1. Consolidated Financial Statements
2. Net Sales/Operating Income by
Business Segment
3. Performance Trend
4. Performance Forecasts (1H/2H)
5. Polysilicon Market
6. Solar-cell Market

22

6

Supplementary Data

1. Consolidated Financial Statements Income Statements(Billions of yen)
Q3 FY2015 YTD

222.0

226.6

+4.6

+2

Cost of sales

159.3

166.2

+6.8

+4

Selling, general andadministrative expenses

46.7

47.4

+0.7

+2

15.8

12.9

(2.9)

(18)

(4.8)

(3.5)

+1.2

-

11.0

9.3

(1.6)

(15)

(88.2)(116.6)(28.3)-(77.1)(107.2)(30.0)

-

1.7

8.5

+6.8

+401

(78.8)(115.8)(36.9)-Net sales

Operating income
Non-operating income/expenses

Ordinary income
Extraordinary income/expenses

Income (loss) before income taxes
Income taxes and non-controlling interests

Profit (loss)
attributable to owners of parent
23

Difference
Amount%Q3 FY2014 YTD

6Supplementary Data

1. Consolidated Financial Statements Balance Sheets (Billions of yen)
3/31/201512/31/2015

%

554.5

412.2

(142.2)(26)

Current assets

243.9

241.0

(2.9)

(1)

Tangible fixed assets

253.3

122.8

(130.5)(52)

Intangible fixed assets

9.7

7.2

(2.5)

(26)

Investments and other assets

47.4

41.1

(6.2)

(13)

Total assets

3/31/201512/31/2015

ChangesAmount

%

385.0

360.3

(24.6)(6)

Current liabilities

117.2

120.6

+3.4

+3

Long-term liabilities

267.7

239.6

(28.0)

(10)

169.4

51.8

(117.5)(69)

Total liabilities

Total net assets
24

ChangesAmount6

Supplementary Data

2. Net Sales/Operating Income by Business Segment(Year-on-year change)

ChemicalsHigher earnings on lower sales
Net Sales

Operating Income(Billions of yen)

68.1

66.1
5.6
3.8

Qualitative information(Caustic soda)•Decreased net sales due to weak trend of selling price(Vinyl chloride monomer (VCM))•Improved profitability owing to drop in raw material cost arisingfrom domestic naphtha price down
(Vinyl chloride resin)•Decreased sales volume due to the inventory adjustments withrespect to the supply chain

Q3 FY2014 YTD

25

Q3 FY2015 YTD(Soda ash and calcium chloride)•Increased net sales due to commencement of the operation of
TOKUYAMA & CENTRAL SODA Inc.

6

Supplementary Data

2. Net Sales/Operating Income by Business Segment(Year-on-year change)

Specialty Products

Loss on higher sales

Net Sales

38.4 3.6

Operating Income

40.8(Billions of yen) (Semiconductor-grade polycrystalline silicon)•Decreased sales volume on the back of such factors as inventory
adjustments with respect to the supply chain of the semiconductorrelated products(3.7)

Q3 FY2014 YTD

26Qualitative information

Q3 FY2015 YTD(Solar-grade polycrystalline silicon)•While sales volume of solar-grade polycrystalline silicon increased
reflecting commencement of shipments from Tokuyama Malaysia,
earnings deteriorated due to increased depreciation cost
(Fumed silica)•Increased sales volume, mainly of its application as a polishingmaterial for semiconductors

6

Supplementary Data

2. Net Sales/Operating Income by Business Segment(Year-on-year change)

CementHigher earnings on higher sales
Net Sales

Operating Income(Billions of yen)

64.9

60.3
3.5

4.1

Qualitative information(Cement)•Decreased sales volume in domestic market due to decrease inpublic works and delays in construction attributable tounreasonably bad weather•Increased sales volume of ready mixed concrete for large-scale
projects in a certain area
(Recycling and environment-related business)•The Company accepted a higher volume of waste including
construction waste soil

Q3 FY2014 YTD

27

Q3 FY2015 YTD

6Supplementary Data

2. Net Sales/Operating Income by Business Segment(Year-on-year change)

Life & Amenity

Higher earnings on lower sales

Net Sales

Operating Income(Billions of yen)

43.8

3.6

Q3 FY2014 YTD

28

43.3

4.9

Q3 FY2015 YTD

Qualitative information(Active pharmaceutical ingredient)•Decreased sales volume, mainly of such applications as genericpharmaceuticals(Plastic lens-related materials)•Increased sales volume of photochromic materials(Microporous film)•Increased sales volume of products mainly for disposable diapers(Polyolefin film)•Increased sales volume of products mainly for convenience stores•Weak trends in selling price on the back of the decline indomestic naphtha price(Dental materials and equipment)•Increased sales volume of new products and products foroverseas markets(Medical diagnosis system)•Increase sales volume of products for blood testing6

Supplementary Data

3. Performance Trend

Consolidated (Annual)
Income (Billions of yen)

Net sales (Billions of yen)
350

80
307.4

300

292.7
34.7
31.6

250
18.4

300.9

35.3
30.3
18.8

200

289.7
273.1

22.7
20.3

16.4
15.3
7.4

302.0
258.6
13.7

17.3
9.7

11.5
9.3

60

287.3

282.3

20.1

306.0

40
20.2

6.7

14.9
10.2

3.2

19.5

20.0
20
15.0

12.9

0

(5.5)

(20)

150

(40)
(37.9)(65.3)

100

(60)
(80)

50
(100)
(103.0)
0

(120)
FY06

07

Net sales

29

08

09

Operating income

1011

Ordinary income

12

13

14

15
Forecast

Profit attributable to owners of parent

6

Supplementary Data

3. Performance Trend(Quarter)

Consolidated

71.2
5.57

(Billions of yen)

72.6

5.01

78.1

80.0

73.7

75.3

77.5

5.39

5.27
4.60

3.66
2.93

Q1/FY14Q2/FY14Q3/FY14Net Sales
30

Q4/FY14

Q1/FY15

Operating Income

Q2/FY15Q3/FY15

6

Supplementary Data

3. Performance Trend(Quarter)

Chemicals

22.6

1.27

Q1/FY14(Billions of yen)

24.1

22.8

21.2

1.18

Q2/FY14

1.34

Q3/FY14Net Sales

31

23.8

21.1
2.11

22.0
2.01

1.49
1.25

Q4/FY14

Q1/FY15

Operating Income

Q2/FY15Q3/FY15

6

Supplementary Data

3. Performance Trend(Quarter)Specialty Products(Billions of yen)

1.71
11.1
0.99

12.9

16.9

14.3

13.0

13.6

14.0

0.94
0.47

(0.80)

Q1/FY14Q2/FY14Q3/FY14Net Sales

32

Q4/FY14(1.52)(1.45)

Q1/FY15Q2/FY15

Operating Income

Q3/FY15

6

Supplementary Data

3. Performance Trend(Quarter)Cement(Billions of yen)

21.6
19.3

19.3

1.47

22.1

20.8

22.4

20.4
1.84
1.34

1.31

0.91

0.94

Q4/FY14

Q1/FY150.73

Q1/FY14Q2/FY14Q3/FY14Net Sales

33

Operating Income

Q2/FY15Q3/FY15

6

Supplementary Data

3. Performance Trend(Quarter)

Life & Amenity(Billions of yen)

1.88
1.71

16.0
14.0

1.39

1.19

Q1/FY14

13.7

1.50

14.2

14.6

14.3
1.38

Q1/FY15Q2/FY15Q3/FY15

1.07

Q2/FY14Q3/FY14Net Sales

34

14.6

Q4/FY14

Operating Income

6

Supplementary Data

4. Revised Performance Forecasts (1H/2H)(Billions of yen)(Compared with previous forecasts)
FY2015 previous forecasts (Oct 30, 2015)
1H

2H

Total

FY2015 revised forecasts (Jan 29, 2016)
1H

2H

Total

149.1

156.9

306.0

149.1

156.9

306.0

Operating income

7.5

12.5

20.0

7.5

12.5

20.0

Ordinary income

5.2

8.8

14.0

5.2

9.8

15.0

Profit (loss)

attributable to owners of parent

2.7

11.3

14.0

2.7

(105.7)(103.0)

Basic earnings per share (yen)

8.00

32.25

40.25

8.00

(304.10)(296.10)

Exchange rate (¥/$)

122

120

121

122

121

121

48,00040,00044,00048,00039,90043,900Net sales

Domestic naphtha price(¥/kl)

35

6

Supplementary Data

4. Revised Performance Forecasts (1H/2H)(By business segment, compared with previous forecasts)(Billions of yen)

FY2015 previous forecast (Oct 30, 2015)

FY2015 revised forecast (Jan 29, 2016)

1H

1H

Net
sales

2H

Operatingincome

Net
sales

Total

OperatingincomeNet
sales

Operatingincome

Net
sales

2H

Operatingincome

Net
sales

Total

OperatingincomeNet
sales

OperatingincomeChemicals

44.0

3.6

43.0

3.9

87.0

7.5

44.0

3.6

43.0

4.4

87.0

8.0

Specialty
Products

26.7

(2.9)

36.3

1.4

63.0

(1.5)

26.7

(2.9)

35.3

1.4

62.0

(1.5)

Cement

42.5

2.2

41.5

3.8

84.0

6.0

42.5

2.2

41.5

3.3

34.0

5.5

Life &
Amenity

28.9

3.6

29.1

2.4

58.0

6.0

28.9

3.6

29.1

2.4

58.0

6.0

Others

26.7

2.5

28.3

2.5

55.0

5.0

26.7

2.5

28.3

2.5

55.0

5.0

Total

169.1

9.0

177.9

14.0

347.0

23.0 169.1

9.0

176.9

14.0

346.0

23.0

Inter-segment
eliminations andcorporate-wide
expenses(19.9)(1.5)(21.1)(1.5)(41.0)(3.0) (19.9)(1.5)(20.1)(1.5)(39.0)(3.0)

Consolidated
Results

149.1

7.5

156.9

12.5

306.0

20.0 149.1

7.5

156.9

12.5

307.0

20.0

Tokuyama Malaysia

3.6

(6.4)

6.0

(4.8)

9.6

(11.2)

(6.4)

4.8

(4.4)

8.4

(10.8)

36

3.6

6

Supplementary Data

5. Polysilicon Market
Supply-demand forecast of polysilicon
Supply capacity/Demand (tonnes)*Tokuyama estimate

700,000
600,000
500,000<Solar-grade polysilicon demand>•A new framework regarding reductions on CO2 emissions at
COP21 is expected to generate favorable conditions•Despite a substantial decline in installed PV capacity in Europe andcertain other areas, the projected annual increase in demand isaround 10% largely reflecting forecast growth due to aggressive
installation initiatives in such countries as China, the U.S. and India

400,000

300,000
200,000
100,000
02013 2014 2015 2016 2017 2018 2019
Demand (solar-grade)

Supplying capacity of other producers

Demand (semiconductor-grade)

Supplying capacity of major producers(Note 1) Major producers mean Tier1 manufactures in the classification by IHS.
(Note 2) Demand is estimated by Tokuyama based on IHS

37

Forecasts<Semiconductor-grade polysilicon demand>•Projected annual increase of 3-4% on the back of an upswing in
demand for use in mobile devices<Supply side>•Excess supply capacity expected to continue for the foreseeable
future; cost competitiveness recognized as the key to survival

6

Supplementary Data

6. Solar-cell Market

Conditions in each country

Forecasts of installed PV capacity by region
Unit:GW

80
70<Japan> Since the launch of the existing feed-in tariff system in July 2012, Japan has
witnessed a rapid surge in the amount of solar power generation introduction.
Installed capacity in tan -Sep of 2015 came to 7.4GW (6.1GW in the corresponding
period of the previous year) In the Long-term Energy Supply-demand Outlook collated by Japan’s Ministry of
Economy, Trade and Industry, solar cells make up 7% (equivalent to approx. 64GW)
of the nation’s ideal power source structure in fiscal 2030

60
50
40

30
20
10
0

2013 2014 2015 2016 2017 2018 2019
EuropeAsia

N. America(Note) Tokuyama estimate based mainly on IHS Market
Tracker (PV Integrated) data for Q4 2015

38

<China>Calls for the increased installed capacity volume of 5.3GW announced in
September 2015 to be connected by the first half of 2016; together with the rush indemand prior to reductions attributable to the feed-in-tariff system, expectations ofan increase in demand in the first half of 2016
Forecast renewal of solar cell installation targets by 2020 under the 13th fiveyear plan

ROW

<India> The Modi government announced plans to target an installed capacity of 100GW
by 2022
 Policy in place to authorize new clean energy targets (ratio of renewable energy
in 2030 of 40%: solar cells approx. 250GW)<U.S.>
Investment tax credit (ITC) extension passed by the U.S. Congress; expectationsof an increase in the amount of solar power generation system installation by 2020
<Europe>Expectations of moderate growth over the medium to long term despite theimpact of the successive shrinking and termination of policy support measures6

Supplementary Data

(Ref.) Polysilicon Spot Price and History of Malaysia Project(US$/KG)

90

Aug 2009 Decided to construct first plant (PS-1)

80

Feb 2011 Commenced construction of PS-1

70

Feb 2013 Completed construction of PS-1
Commenced trial operation60
Jan 2014 Completed construction of PS-2
Commenced trial operation

50

40

May 2011 Decided to construct second
plant (PS-2)

Oct 2014 Commenced operations at PS-2

30
20

Feb 2012 Commenced construction of PS-2

10

2009/7/1 2010/1/1 2010/7/1 2011/1/1 2011/7/1 2012/1/1 2012/7/1 2013/1/1 2013/7/1 2014/1/1 2014/7/1 2015/1/1 2015/7/1 2016/1/1
Sep 2014 Posted impairment loss on PS-1

39

Dec 2015 Posted impairment loss on PS-2

Disclaimer
This material is supplied to provide information of Tokuyama and its Group
companies, and is not intended as a solicitation for investment or other actions.
This material has been prepared based on the information currently available andinvolves uncertainties. Tokuyama and its Group companies accept no liability inrelation to the accuracy and completeness of the information contained in thismaterial.
Tokuyama and its Group companies assume no responsibility whatever for any
losses or deficits resulting from investment decisions based entirely on projections,numerical targets and other information contained in this material.

40