Summary of Consolidated Financial Statements for the First Quarter Fiscal 2014 (JPGAAP)
July 31, 2014
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL http://www.tokuyama.co.jp/)
Local Code :4043
Representative:
Kazuhisa Kogo, President and Representative Director
Contact:
Taro Kobayashi, General Manager, Corporate Communications & Investor Relations Dept.
+81-3-6205-4832
Scheduled date for the filing of the quarterly consolidated financial statements : August 11, 2014
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, 2014 (April 1, 2014 - June 30, 2014)(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 2014
71,215
10.6
5,579
79.9
4,553
82.1
First Quarter Fiscal 2013
64,362
0.7
3,101
330.1
2,500
(Note) Comprehensive income: 1st Q FY14: 4,390 million yen [51.1%] 1st Q FY13: 2,905 million yen [-%]Net income

First Quarter Fiscal 2014
First Quarter Fiscal 2013

Net income per
share

Diluted net income
per share(millions of yen)

Year-on-yearchange [%]

(yen)

(yen)

3,575
2,026

76.5
-

10.28
5.82

-

Total assets

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

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

June 30, 2014
Mar. 31, 2014

580,461
238,698
576,315
236,453
June 30, 2014: 231,456 million yen(Reference) Shareholders' equity:

39.9
665.3339.9
660.18Mar. 31, 2014: 229,667 million yen

2. Dividends（Period）

1st quarter(yen)

Fiscal 2013, ended
Mar 31, 2014
Fiscal 2014, ending
Mar 31, 2015
Fiscal 2014
（Forecast）

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

-

(yen)

Total

(yen)

(yen)

3.00

-

3.00

6.00

3.00

-

3.00

6.00

-

(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for fiscal 2014 (April 1, 2014 - March 31, 2015)(% indicates the rate of change over the corresponding previous periods respectively)

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

of
yen)

[%]

(millions

of
yen)

[%]

Net income pershare

Net income(millions

of
yen)

[%]

(yen)

First Half
144,000
6.6
10,000 28.0
7,500 23.1
6,000
32.8
17.25
Fiscal 2014
Fiscal 2014
300,500
4.6
18,500 (8.7)
13,500 (9.8)
9,500
(7.0)
27.31
(Note) Revision of the latest consolidated performance forecast: Yes*The Company announced the release, “Notice concerning Revision of Performance Forecast,” on July 31, 2014.
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*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: Yes
ii. Changes of accounting policies other than the above:Noiii. 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.
(including treasury stock):
Fiscal 2014:
First Quarterii. Number of treasury stock at end of period:
Fiscal 2014:
First Quarteriii. Average number of shares over period:
Fiscal 2014:

349,671,876

Fiscal 2013:

349,671,876

1,787,363

Fiscal 2013:

1,782,644

347,892,060

First Quarter
Fiscal 2013:

347,923,729(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.

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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. 7…………………

P. 7

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

P. 9(1) Consolidated Quarterly Balance Sheets…………………

P. 9(2) Consolidated Quarterly Statements of Income…………………

P. 11(3) Consolidated Quarterly Statements of Comprehensive Income…………………

P. 12(4) Segment Information…………………

P. 13(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 2014 (April 1, 2014 - June 30, 2014)
are summarized as follows:(Unit: Millions of yen)
Net sales

Operating income

Ordinary income

Net income

First Quarter Fiscal 2014

71,215

5,579

4,553

3,575

First Quarter Fiscal 2013

64,362

3,101

2,500

2,026

10.6

79.9

82.1

76.5

Rate of change (%)

Net sales
Consolidated net sales increased 10.6%, or ¥6.8 billion compared with thecorresponding period of the previous year, to ¥71.2 billion. In addition toincreased sales volumes of cement and caustic soda and selling price revisions ofpetrochemicals and caustic soda, this was attributable to strong sales of active
pharmaceutical ingredients and other products.
Cost of sales
Cost of sales increased 7.4%, or ¥3.4 billion compared with the corresponding
period of the previous year, to ¥50.1 billion, due chiefly to increased sales volume
and a rise in raw material costs arising from domestic naphtha price hikes.
SG&A expenses
SG&A expenses increased 6.5%, or ¥0.9 billion compared with the corresponding
period of the previous year, to ¥15.4 billion, due mainly to higher distribution
costs resulting from increased sales volume.
Operating income
Operating income increased 79.9%, or ¥2.4 billion compared with thecorresponding period of the previous year, to ¥5.5 billion, due chiefly to increased-2-sales volume and profitability improvement of petrochemicals.
Non-operating income/expenses, Ordinary income
Despite a decrease in costs of idle operations, non-operating income/expenses
deteriorated by ¥0.4 billion compared with the corresponding period of theprevious year, due chiefly to an increase in interest expenses and a change fromforeign exchange gains recorded in the corresponding period of the previous year
to foreign exchange losses.
As a result of the above, ordinary income increased 82.1%, or ¥2.0 billion
compared with the corresponding period of the previous year, to ¥4.5 billion.
Extraordinary income/losses, Income before income taxes and minority
interests, Income before minority interests, Net income
Extraordinary income/losses improved by ¥15 million compared with thecorresponding period of the previous year.
As a result of the above, income before income taxes and minority interests
increased 83.5%, or ¥2.0 billion compared with the corresponding period of theprevious year, to ¥4.5 billion.
Income before minority interests increased 89.4%, or ¥1.7 billion compared withthe corresponding period of the previous year, to ¥3.7 billion. After deducting
minority interests, the Company recorded net income of ¥3.5 billion. Consequently,
net income increased 76.5%, or ¥1.5 billion compared with the corresponding
period of the previous year.

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(Operating results by segment)
Sales(Unit: Millions of yen)

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

14,01912,85380,114(8,899)71,215

17,311

12,586

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

12.0

11.4

15.0

10.5

-

10.6

Reportable segment

First Quarter
Fiscal 2014
First Quarter
Fiscal 2013
Rate of change (%)

Chemicals

Specialty
Products

Cement22,694

11,14919,39621,125

10,297

7.4

8.3

Life &
Amenity

Operating income(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

6,508

(928)

5,579

858

3,827

(726)

3,101

82.5

70.0

-

79.9

Reportable segment

First Quarter
Fiscal 2014
First Quarter
Fiscal 2013
Rate of change (%)

Others

Total

1,192

1,567

1,331

732

10.9

62.8

Chemicals

Specialty
Products

Cement

1,278

992

1,477

362

542

253.0

83.0

Life &
Amenity(Note) Sales and operating income in each segment include inter-segment transactions.

ChemicalsWith regard to caustic soda, sales increased compared with the corresponding
period of the previous year. In addition to steady domestic and overseas sales,
this was attributable to our efforts to revise selling prices in order to absorb arise in raw material prices.
With regard to vinyl chloride monomer (VCM), despite an increase in raw
material costs arising from domestic naphtha price hikes, profitability improved
owing to high export prices against the backdrop of stronger Asian market
conditions.
With regard to polyvinyl chloride (PVC), sales were steady despite a slowdown indemand for some of its applications. We revised selling prices to absorb a rise in-4-

raw material prices, and as a result, sales increased compared with thecorresponding period of the previous year.
As a result of the above, segment net sales increased 7.4% compared with thecorresponding period of the previous year, to ¥22.6 billion and operating
income increased 253.0% to ¥1.2 billion. The segment reported higher earnings
on higher sales.

Specialty Products
With regard to semiconductor-grade polycrystalline silicon, sales volume
increased owing mainly to strong demand for mobile terminals including
smartphones. On the other hand, with regard to solar cell-grade polycrystalline
silicon, although the market was on the path of recovery against the backdrop of
the growth in demand for solar panels, sales decreased compared with thecorresponding period of the previous year. This was due to the fact that we
decreased shipments in line with a sales strategy that focused on profits.
With regard to fumed silica, sales were steady, mainly of its application as apolishing material for semiconductors.
With regard to aluminum nitride, sales increased compared with thecorresponding period of the previous year. This was attributable to an increasein sales volumes of such applications as heat dissipation materials used for
power devices for industrial machinery and LEDs.
With regard to high-purity chemicals for electronics manufacturing, sales
increased compared with the corresponding period of the previous year, owing
to strong sales of such applications as semiconductor and liquid crystal
production.
As a result of the above, segment net sales increased 8.3% compared with thecorresponding period of the previous year, to ¥11.1 billion and operating-5-

income increased 83.0% to ¥0.9 billion. The segment reported higher earnings
on higher sales.

CementIn the cement business, sales increased compared with the corresponding periodof the previous year. This was attributable to steady cement and ready-mixed
concrete sales against the backdrop of demand on a recovery path in Japan.
In the recycling and environment-related business, sales increased compared withthe corresponding period of the previous year, because the Company accepted alarger volume of waste as a result of its higher cement production.
As a result of the above, segment net sales increased 12.0% compared with thecorresponding period of the previous year, to ¥19.3 billion and operating
income increased 10.9% to ¥1.4 billion. The segment reported higher earnings
on higher sales.

Life & Amenity
Sales of active pharmaceutical ingredients grew owing to increased sales volumesof generic drugs and other applications.
With regard to microporous film, sales of such applications as sanitary articles
including disposable diapers were steady.
With regard to polyolefin film, we revised selling prices to absorb a rise in raw
material prices, and as a result of this, sales increased compared with thecorresponding period of the previous year.
With regard to gas sensors, sales increased compared with the corresponding
period of the previous year. This was attributable to strong overseas sales ofsuch applications as gas alarm devices and air cleaners.
With regard to medical diagnosis systems, profitability rose compared with the-6-corresponding period of the previous year. In addition to steady sales of
products for blood testing, this was attributable to our cost reduction efforts.
As a result of the above, segment net sales increased 11.4% compared with thecorresponding period of the previous year, to ¥14.0 billion and operating
income increased 62.8% to ¥1.1 billion. The segment reported higher earnings
on higher sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2014, total assets amounted to ¥580.4 billion, an increase of ¥4.1
billion compared with those as of March 31, 2014.
This was largely attributable to an increase in property, plant and equipment
resulting mainly from construction of polycrystalline silicon manufacturing
facilities in Malaysia.
Total liabilities amounted to ¥341.7 billion, an increase of ¥1.9 billion comparedwith those as of March 31, 2014.
Net assets totaled ¥238.6 billion, an increase of ¥2.2 billion compared with those
as of March 31, 2014.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Based on the current performance trend, the Company has revised theperformance forecast, announced on April 30, 2014. For further details, please see
the Company’s news release, “Notice concerning Revision of Performance
Forecast,” dated July 31, 2014.
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 be-7-substantially different from the actual performance because of various factors that
may arise from now on.

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2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen
3/31/2014
6/30/2014
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
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
Net defined benefit asset
Other
Allowance for investment loss
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-9-27,60567,49543,05014,131
9,896
17,878
1,068
10,635(138)
191,623

34,64963,50541,05015,721
10,11016,860
1,121
10,644(139)
193,524

102,709(71,685)
31,024
441,874(392,062)
49,812
23,002(21,360)
1,642
32,667
2,156
(895)
1,261
206,692
323,100

102,660(72,129)
30,531
442,523(394,047)
48,47522,969(21,380)
1,588
32,630
2,300
(984)
1,315
212,225
326,767

3,608
29
6,493
10,131

3,245
27
6,010
9,282

33,334
3,473
839
7,804
6,264
(21)
(233)
51,460384,692
576,315

35,647
3,464
856
6,335
4,952
(21)
(348)
50,886
386,937
580,461Millions of yen
3/31/2014
6/30/2014
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
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors' retirement benefits
Provision for repairs
Allowance for loss on compensation for building materials
Provision for environmental measures
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
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
Minority interests
Total net assets
Total liabilities and net assets-10-

40,08912,347
4,000
8,811
376
1,865
1
2,056
1,429
132
13
28,17399,29739,494
11,628
4,000
9,346
379
802
0
1,159
2,228
75
10
28,703
97,82950,000164,278
953
7,338
207
2,747
842
131
1,112
5
12,946
240,565
339,862

50,000167,061
1,001
8,267
200
2,934
765
119
1,117
5
12,458
243,933
341,762

53,45857,670107,155(1,428)
216,856

53,45857,670108,224(1,429)217,923

8,369
749
2,710
982
12,811
6,785
236,453
576,315

10,074
746
1,701
1,011
13,533
7,242
238,698
580,461(2) 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
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Dividends income of group term insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Group Term Insurance Expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchase
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on disposal of non-current assets
Loss on sales of shares of subsidiaries and associates
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income-11-

Millions of yen
Q1 FY2013
Q1 FY2014
64,362
71,21546,73450,17017,62721,044
8,527
5,998
14,525
3,101

9,006
6,458
15,464
5,579

9
307
131
289
181
232
1,150

23
344
215
－
209
231
1,025

639
237
874
1,752
2,500

1,157
241
652
2,051
4,553

2
－
88
91

46
5
－
51

－
36
78
114
2,477
508
1,968
(57)
2,026

32
27
－
59
4,545
816
3,728
153
3,575

(3) Consolidated Quarterly Statements of Comprehensive Income

Income 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 entities accounted for using equity
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests-12-

Millions of yen
Q1 FY2013
Q1 FY2014
1,968
3,728
577
(872)
1,130
101
－
937
2,905

1,700
(3)
(1,001)
(62)
28
661
4,390

2,902
3

4,296
93

(4) Segment information
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 The “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 allocable to a
specific reportable segment.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by making an adjustment to the sum total of the reportable segments’ income and the “Others”
segment’s income.

2. Information on impairment loss of non-current 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 the 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.

First Quarter Fiscal 2014 (April 1, 2014 – June 30, 2014)
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

Cement22,503
191
22,694
1,278

8,174
2,975
11,149992

19,36927
19,396
1,477Life &
Amenity

13,620398
14,019
1,192

Others*1

Total

7,548
5,305
12,853
1,567

71,215
8,899
80,114
6,508

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(8,899)(8,899)(928)

71,215
71,215
5,579*1 The “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 allocable to a
specific reportable segment.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by making an adjustment to the sum total of the reportable segments’ income and the “Others”
segment’s income.

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2. Information on changes in reportable segments(Adoption of the accounting standard for retirement benefits)
Regarding the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, issued on May 17,
2012; hereinafter “Retirement Benefits Accounting Standard”) and the “Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance No. 25, issued on May 17, 2012; hereinafter “Retirement Benefits
Implementation Guidance”), effective from this first quarter of fiscal 2014, the Company adopted theprovisions specified under the main clause of Section 35 of Retirement Benefits Accounting Standard and themain clause of Section 67 of Retirement Benefits Implementation Guidance. Under the new accounting policy,
the Company has revised a method for calculating retirement benefit obligations and service costs and changed
the attribution method for estimated retirement benefits from a fixed amount standard to a payment calculation
standard. At the same time, the Company has changed a method for determining the discount rate from using a
discount rate based on the years similar to the average remaining service period of employees to using a single
weighted average discount rate which reflects the projected retirement benefit payment period and an amountby projected payment period. The effect of this change on segment information was immaterial.

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