Summary of Consolidated Financial Statements for the First Quarter Fiscal 2013 (JPGAAP)
July 31, 2013
Tokuyama Corporation
Stock exchange listings:
Tokyo
Local Code :4043(URL http://www.tokuyama.co.jp/)
Representative:
Kazuhisa Kogo, President and Representative Director
Contact:
Yoshifumi Matsumoto
General Manager, Corporate Communications & Investor Relations Dept.
+81-3-6205-4832
Scheduled date for the filing of the quarterly consolidated financial statements : August 9, 2013
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)

1. Consolidated results for fiscal first quarter ended June 30, 2013 (April 1, 2013 - June 30, 2013)(1) Performance

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

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

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

First Quarter Fiscal 2013
64,362
0.7
3,101
330.1
2,500
First Quarter Fiscal 2012
63,892(10.0)
721(83.6)(1,141)(Note) Comprehensive income: 1st Q FY13: 2,905 million yen [-%] 1st Q FY12: (3,606) million yen [-%]Net income

First Quarter Fiscal 2013
First Quarter Fiscal 2012-

Net income per
share

Diluted net income
per share(millions of yen)

Year-on-yearchange [%]

(yen)

(yen)

2,026
(1,786)-

5.82(5.13)-

Total assets

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

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

June 30, 2013
Mar. 31, 2013

521,966
226,019518,251
223,871
June 30, 2013: 219,358 million yen(Reference) Shareholders' equity:

42.0
630.4842.0
625.29Mar. 31, 2013: 217,554 million yen

2. Dividends
1st quarter（Period）
Fiscal 2012, ended
Mar 31, 2013
Fiscal 2013, ending
Mar 31, 2014
Fiscal 2013
（Forecast）

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

Total

(yen)

(yen)

(yen)

(yen)

(yen)

-

-

-

3.00

3.00

3.00

-

3.00

6.00

-

(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for Fiscal 2013 (April 1, 2013 - March 31, 2014)(% indicates the rate of change over the corresponding previous periods respectively)

Net sales(millionsofyen)Operating income Ordinary income[%](millions

of
yen)

[%]

(millions

of
yen)

[%]

First Half
132,000
4.8
6,000 656.8
4,000
Fiscal 2013
Fiscal 2013
275,500
6.5
14,000 106.7
10,000 209.4(Note) Revision of the latest consolidated performance forecast: No-1-

Net income pershare

Net income(millions

of
yen)

[%]

2,500

-

7.19

7,500

-

21.56

(yen)

*Notes(1) Changes in significant subsidiaries during this period: No
Addition to the scope of consolidation: Reduction from the scope of consolidation: (Note) This item means changes in significant subsidiaries with changes in the scope of consolidation
during this period.
(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes of accounting policies by revision of accounting standards: No
No
ii. Changes of accounting policies other than the above:iii. Changes in accounting estimates:No
No
iv. Retrospective restatements:(4) Number of shares issued (in common stock)
Number of shares issued at end of period First Quarteri.
Fiscal 2013:(including treasury stock):
First Quarterii. Number of treasury stock at end of period:
Fiscal 2013:
First Quarteriii. Average number of shares over period:
Fiscal 2013:

349,671,876

Fiscal 2012:

349,671,876

1,750,442

Fiscal 2012:

1,742,749

347,923,729

First Quarter
Fiscal 2012:

347,943,061(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures inline with 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 linewith the Financial Instruments and Exchange Act are underway.

(Note) Cautions pertaining to appropriate use of performance forecast and other particular items
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-

1. Qualitative information on consolidated results for this quarter(1) Explanation concerning business results
Consolidated results for the first quarter fiscal 2013 (April 1, 2013 - June 30, 2013)
are summarized as follows:(Unit: Billions of yen)
Net sales

Operating income

Ordinary income

Net income (loss)(loss)First Quarter Fiscal 2013

64.3

3.1

2.5

2.0

First Quarter Fiscal 2012

63.8

0.7

(1.1)

(1.7)

Rate of change (%)

0.7

330.1

-

-

Net sales
Despite such negative factors as decreased sales volume of polycrystalline silicon,
consolidated net sales increased 0.7%, or ¥0.4 billion compared with thecorresponding period of the previous year, to ¥64.3 billion. This was largely
attributable to an increase in sales volume, which was due to the fact that there has
been no longer adverse impact from difficulties at our vinyl chloride monomer(VCM) plant, and selling price revisions of petrochemicals.
Cost of sales
Cost of sales decreased 2.2%, or ¥1.0 billion compared with the corresponding
period of the previous year, to ¥46.7 billion, due chiefly to decreased sales volumeof polycrystalline silicon.
SG&A expenses
SG&A expenses decreased 5.7%, or ¥0.8 billion compared with the corresponding
period of the previous year, to ¥14.5 billion, due mainly to lower distribution costs
as a result of decreased sales volume of polycrystalline silicon and Companywide
thoroughgoing cutbacks in costs.

-3-

Operating income
Operating income increased 330.1%, or ¥2.3 billion compared with thecorresponding period of the previous year, to ¥3.1 billion, due chiefly toCompanywide thoroughgoing cutbacks in costs.
Non-operating income/expenses, Ordinary income/loss
Non-operating income/expenses improved by ¥1.2 billion compared with thecorresponding period of the previous year, due chiefly to a change from foreignexchange losses recorded in the corresponding period of the previous year toforeign exchange gains. As a result, ordinary income/loss improved by ¥3.6 billion
compared with the corresponding period of the previous year, to ordinary incomeof ¥2.5 billion.
Extraordinary gains/losses, Income/loss before income taxes, Income/loss
before minority interests, Net income/loss
Extraordinary gains/losses improved by ¥0.8 billion compared with thecorresponding period of the previous year, mainly because the Company did notrecord the provision for business restructuring charges relating to Excel Shanon
Corporation in the period under review, which was recorded in the corresponding
period of the previous year.
As a result of the above, income/loss before income taxes improved by ¥4.4
billion compared with the corresponding period of the previous year, to income of¥2.4 billion.
Income/loss before minority interests, which was computed reflecting income
taxes etc. calculated in an appropriate way, improved by ¥3.6 billion from thecorresponding period of the previous year, to income of ¥1.9 billion.
After deducting minority interests, the Company recorded net income of ¥2.0
billion. Consequently, net income/loss improved by ¥3.8 billion from thecorresponding period of the previous year.
-4-(Operating results by segment)
Sales(Unit: Millions of yen)

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

12,586

11,17472,495(8,133)64,362

17,163

11,762

10,281

72,593(8,700)63,892

0.9

7.0

8.7

(0.1)

-

0.7

Reportable segment

First Quarter
Fiscal 2013
First Quarter
Fiscal 2012
Rate of change (%)

Chemicals

Specialty
Products

Cement21,125

10,297

17,311

20,387

12,997

3.6(20.8)

Life &
Amenity

Operating income(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

Reportable segment
Chemicals

Specialty
Products

CementLife &
Amenity

Others

Total

First Quarter
Fiscal 2013
First Quarter
Fiscal 2012

362

542

1,331

732

858

3,827

(726)

3,101

126

117

1,132

432

561

2,370

(1,648)721

Rate of change (%)

186.7

360.9

17.6

69.5

53.0

61.5

-

330.1

(Note 1) Sales and operating income in each segment include inter-segment transactions.
(Note 2) From this first quarter fiscal 2013, the former Advanced Components segment has been renamed
the Life & Amenity segment. We have only changed the segment’s name and therefore the product lines ofthe said reportable segment have not been changed.
Also, with the aim of implementing more proper management of operating results, the Company changed
the accounting treatment method for expenses included in “Adjustment.” By this change, the Company
directly imposed expenses clearly related to specific segments, which had been previously included in“Adjustment,” on specific segments.
Sales and operating income for the first quarter fiscal 2012 have been recalculated reflecting theabove-mentioned changes.

ChemicalsWith regard to vinyl chloride monomer (VCM), sales increased compared withthe corresponding period of the previous year. In addition to the fact that there
has been no longer adverse impact from difficulties at our VCM plant, which
occurred in the corresponding period of the previous year, this was attributable
to a rise in export prices resulting from the weaker yen.
-5-

With regard to caustic soda, the operating rate of our electrolysis facilities was up,
as the above-mentioned difficulties at the VCM plant were solved. Due mainly tothis factor, domestic sales volume recovered.
With regard to polyvinyl chloride (PVC), we revised selling prices to absorb arise in the price of naphtha.
As a result of the above, this segment recorded sales of ¥21.1 billion, up 3.6%
compared with the corresponding period of the previous year, and operating
income of ¥0.3 billion, an increase of 186.7% year on year. The segment
reported higher earnings on higher sales.

Specialty Products
With regard to polycrystalline silicon, although the semiconductor-grade market
was on the path of recovery, sales volume of semiconductor-grade
polycrystalline silicon decreased. This was largely attributable to inventory
adjustments in supply chains. In contrast, the solar-grade market remainedsluggish due to excess supply. Against this backdrop, we adopted a sales strategy
that focused on profits and as a result, sales of solar-grade polycrystalline silicon
were soft particularly in terms of volume.
With regard to fumed silica, we worked to revise selling prices in order to absorb
the rise of raw material and fuel prices and higher distribution costs.
As a result of the above, net sales in this segment were ¥10.2 billion, a decreaseof 20.8% compared with the corresponding period of the previous year, andoperating income was ¥0.5 billion, an increase of 360.9% year on year. The
segment reported higher earnings on lower sales.

CementWith regard to cement, sales were steady due to the recovery in demand in Japan.
-6-

As a result of the above, this segment sales were ¥17.3 billion, an increase of
0.9% from the corresponding period of the previous year, and operating income
was ¥1.3 billion, a 17.6% year-on-year increase.
Both sales and earnings increased over the corresponding period of the previous
year.

Life & Amenity
Sales of plastic lens-related materials increased owing to the recovery fromdamage to supply chains caused by the flooding in Thailand that occurred in
2011.
With regard to polyolefin film, we revised selling prices to absorb price increases
in raw materials.
Sales of dental materials/equipment were strong on the back of sales expansionof mainly new products.
With regard to plastic window sashes, sales increased due to businessreconstruction and sales expansion.
As a result of the above, this segment recorded sales of ¥12.5 billion, up 7.0%
compared with the corresponding period of the previous year, and operating
income of ¥0.7 billion, an increase of 69.5% year on year. Both sales andearnings increased.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2013, total assets amounted to ¥521.9 billion, an increase of ¥3.7
billion compared with those as of March 31, 2013.
As construction of polycrystalline silicon manufacturing facilities in Malaysia
progressed smoothly, tangible fixed assets increased. On the other hand, securities-7-

in which funds we raised were invested and deposits at bank decreased, because
they were allocated for payment of the construction expenses.
Total liabilities amounted to ¥295.9 billion, an increase of ¥1.5 billion comparedwith those as of March 31, 2013.
Net assets totaled ¥226.0 billion, an increase of ¥2.1 billion compared with those
as of March 31, 2013.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Although the future business environment is uncertain, we have been implementing
the Profit Improvement Plan as planned and the Company’s results were in linewith our expectations. Therefore, the Company has not revised the performance
forecast, announced on April 30, 2013.
The performance forecast has been prepared on the basis of information available
at this point and certain assumptions which are judged to be rational, and may besubstantially different from the actual performance because of various factors that
may arise from now on.

-8-

Segment information
First Quarter Fiscal 2012 (April 1, 2012 – June 30, 2012)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement20,165
222
20,387126

10,4592,538
12,997
117

17,12736
17,163
1,132

Life &
Amenity

11,135627
11,762432

Others*1

Total

5,005
5,276
10,281561

63,8928,700
72,593
2,370

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(8,700)(8,700)(1,648)63,892
63,892721*1 “Others” segment comprises businesses other than those of the reportable segments. Concretely, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment income adjustment amount consists mainly of basic R&D expenses that are not related to
specific reportable segments.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by adjusting the sum total of the reportable segments’ income and income in the “Others”
segment.

First Quarter Fiscal 2013 (April 1, 2013 – June 30, 2013)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement20,869256
21,125
362

8,037
2,260
10,297542

17,26842
17,311
1,331

Life &
Amenity

12,177409
12,586732

Others*1

6,008
5,165
11,174858

Total

64,362
8,133
72,495
3,827

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(8,133)(8,133)(726)

64,36264,362
3,101*1 “Others” segment comprises businesses other than those of the reportable segments. Concretely, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment income adjustment amount consists mainly of basic R&D expenses that are not related to
specific reportable segments.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by adjusting the sum total of the reportable segments’ income and income in the “Others”
segment.

2. Information on changes in reportable segments
From this first quarter fiscal 2013, the former Advanced Components segment has been renamed the Life &Amenity segment. We have only changed the segment’s name and therefore the product lines of the said
reportable segment have not been changed.
Also, with the aim of implementing more proper management of operating results, the Company changed theaccounting treatment method for expenses included in “Adjustment.” By this change, the Company directly
imposed expenses clearly related to specific segments, which had been previously included in “Adjustment,”
on specific segments.
-9-

Information on sales and income (loss) by reportable segment for the first quarter fiscal 2012, which havebeen recalculated reflecting the above-mentioned changes, is presented in the “First Quarter Fiscal 2012
(April 1, 2012 – June 30, 2012)” on page 9.
3. Information on impairment loss of fixed assets or goodwill by reportable segment(Significant change of the amount of goodwill)In the Cement segment, the Company acquired shares of Holcim (Nouvelle Calédonie) S.A. so that it would
become the Company’s subsidiary. (The subsidiary’s name was changed to Tokuyama Nouvelle Calédonie S.A.
as of June 28, 2013.) During this first quarter fiscal 2013 (April 1, 2013 to June 30, 2013), the amount of
increase in goodwill brought by the said event was ¥3,374 million.

- 10 -

Consolidated quarterly balance sheets
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent 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
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for investment loss
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

Millions of yen
3/31/2013

6/30/2013

44,89765,371
8,310
20,275
13,277
17,110547
16,528(205)
186,114

29,287
61,762
56
22,162
12,421
18,389591
15,937(173)
160,435

100,129(68,452)
31,676
451,758(401,103)
50,65523,044(21,086)
1,958
32,895
1,482
(685)
796
156,388274,370

102,174(70,062)
32,111
457,297(405,194)
52,10323,184(21,289)
1,894
33,035
1,455
(714)
740
179,821299,706

175
22
7,757
7,955

3,571
20
7,580
11,172

31,476
4,017
965
13,710(21)(337)
49,811
332,137
518,251

32,3303,681
985
14,044(21)(369)
50,651
361,530
521,966

Consolidated quarterly balance sheets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial papers
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for repairs
Provision for product warranties
Provision For Restructuring
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for repairs
Allowance for loss on compensation for building materials
Provision for environmental measures
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

Millions of yen
3/31/2013

6/30/2013

38,152
8,912
4,000
22,144
338
948
1,377
1,949
1,755
94
29
35,923
115,626

38,52014,4934,000
22,751
325
798
863
1,330
2,929
81
4
27,973
114,073

50,000101,796
514
5,993
969
214
2,687
1,276
156
5
15,138
178,753294,380

50,000106,055
461
6,287
985
201
2,741
1,132
154
5
13,845
181,872
295,946

53,45857,67099,058(1,414)
208,773

53,45857,67099,988(1,416)
209,700

7,566
2,238
(1,023)8,781
6,316
223,871518,251

8,135
1,366
156
9,657
6,661
226,019
521,966

Consolidated quarterly 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 income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Dividends Income Of Group Term Insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cost of idle operations
Group Term Insurance Expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on disposal of noncurrent assets
Loss on sales of stocks of subsidiaries and affiliates
ProvisionForRestructuring
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes
Income (loss) before minority interests
Minority interests in income (loss)
Net income (loss)

Millions of yen
Q1 FY2012 YTD
Q1 FY2013 YTD
63,89264,362
47,773
46,734
16,118
17,627
8,632
6,765
15,397
721

8,527
5,998
14,525
3,101

16
274
178
－
200
396
1,067

9
307
131
289
181
232
1,150

533
435
241
1,130
589
2,930
(1,141)

639
698
237
－
176
1,752
2,500

3
9
13

2
88
91

1
48
－
750
39
838
(1,967)

－
36
78
－
－
114
2,477

(268)
(1,698)87(1,786)

508
1,968
(57)
2,026

Consolidated quarterly statements of comprehensive income
Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

Millions of yen
Q1 FY2012 YTD
Q1 FY2013 YTD(1,698)
1,968(1,069)(1,599)664
96(1,908)(3,606)

577
(872)
1,130
101
937
2,905

(3,732)125

2,902
3