April 28, 2017
Company name: Tokuyama Corporation
Representative name: Hiroshi Yokota,President and Representative Director(Code No. 4043, First Section TSE)
Contact: Taro Kobayashi, General Manager,
Corporate Communications & Investor Relations Dept.
TEL: +81-3-5207-2552

Notice concerning the Additional Posting of Deferred Tax Assets
and the Difference between Performance Forecasts and Actual Results
Tokuyama Corporation (hereinafter referred to as “Tokuyama” or “the Company”) announces thatis undertaken the additional posting of deferred tax assets. The Company also provides details ofthe subsequent difference between performance forecasts, previously disclosed on October 28, 2016,
and actual results for fiscal 2016, the fiscal year ended March 31, 2017, described as follows.
1. Additional Posting of Deferred Tax Assets
In accordance with the press release “Notice concerning Third-Party Allotment of the New Shares
and Transfer of the Shares of Consolidated Subsidiary” issued on September 28, 2016, Tokuyama
decided to transfer all of its shares held in Tokuyama Malaysia Sdn. Bhd. (hereinafter referred to as“Tokuyama Malaysia”), a consolidated subsidiary, to OCI Company Ltd. (hereinafter referred to as“OCI”). In line with this decision, and as a result of a reassessment of the recoverability of deferred
tax assets, Tokuyama additionally posted deferred tax assets and recorded income taxes - deferred of-¥17.8 billion in the fiscal year ended March 31, 2017.
2. Difference between Performance Forecasts and Actual Results for Fiscal 2016
(April 1, 2016 to March 31, 2017)(Unit: Millions of yen)
Net sales
Previous forecast : (A)(Oct 28, 2016)
Actual results : (B)Difference: (B)－(A)Rate of change (%)[Reference]First Half Fiscal 2015

OperatingincomeOrdinary
incomeProfitattributableto owners ofparent

Basic earnings
per share (yen)291,000

33,00027,00021,00058.18

299,106

39,72033,99852,165147.78

8,106

6,720

6,998

31,165

－

2.8

20.4

25.9

148.4

－

307,115

23,071

17,725(100,563)(289.10)

Reasons for the difference
Net sales for the fiscal year under review were essentially in line with forecasts. Operating income
and ordinary income exceeded forecasts. This largely reflected greater than expected improvementin the loss attributable to Tokuyama Malaysia and lower than projected raw material and fuel costs.
In addition to the reasons outlined above, the transfer of consolidated subsidiary Tokuyama
1Malaysia was postponed from the originally forecast end of March 2017 to the end of May 2017. Asa result, the Company did not post the extraordinary loss related to the transfer of Tokuyama
Malaysia that had been factored into forecasts. Accounting for each of these factors and theaforementioned additional posting of deferred tax assets, the profit attributable to owners of parent
was higher than forecasts.

(Note) 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