Summary of Consolidated Financial Statements for the First Quarter Fiscal 2020 (JPGAAP)
July 28, 2020
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)

1. Consolidated results for fiscal first quarter ended June 30, 2020 (April 1, 2020 - June 30, 2020)(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 2020
70,624
(7.6)
6,653
(5.3)
6,674
6.0
First Quarter Fiscal 201976,4650.8
7,026(20.9)
6,298(27.4)(Note) Comprehensive income: 1st Q FY20: 6,390 million yen [ 61.8%] 1st Q FY19: 3,951 million yen [(34.8) %]Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]First Quarter Fiscal 2020
First Quarter Fiscal 2019

5,205
4,859

7.1
(27.0)

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

74.94
69.97

-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

Jun 30, 2020
Mar 31, 2020

376,444
185,090
383,447
180,429
Jun 30, 2020: 172,570 million yen(Reference) Shareholders' equity:

45.8
2,484.60
44.0
2,431.21
Mar 31, 2020: 168,861 million yen

2. Dividends（Period）

1st quarter(yen)

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

Fiscal 2019, ended
35.00
Mar 31, 2020
Fiscal 2020, ending
Mar 31, 2021
Fiscal 2020
35.00
（Forecast）(Note) Revision of the latest dividends forecast: No

(yen)

Total

(yen)

-

35.00

-

-

(yen)

70.00

3. Consolidated performance forecast for fiscal 2020 (April 1, 2020 - March 31, 2021)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating profit Ordinary profit Profit
owners of parent
per share(millions of
yen)

[%]

(millions of
yen)

[%]

(millions of
yen)

[%]

Fiscal 2020
310,000 (1.9)
28,000 (18.3)
28,000 (14.7)(Note) Revision of the latest consolidated performance forecast: No

1(millions ofyen)

22,000

[%]

10.3

(yen)

316.75

*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:(4) Number of shares issued (in common stock)
Number of shares issued at end of period First Quarteri.
(including treasury stock):
Fiscal 2020:
First Quarterii. Number of treasury stock at end of period:
Fiscal 2020:
First Quarteriii. Average number of shares over period:
Fiscal 2020:

No
No
No
No

69,934,375

Fiscal 2019:69,934,375

478,389

Fiscal 2019:478,862

69,455,591

First Quarter
Fiscal 2019:69,452,147(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures in line 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 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 thebasis 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.
(Access to supplementary explanations on business results)
The Company also supplementary materials “Presentation for IR Meeting” through TD net at the same date.

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 2020 (April 1, 2020 - June 30, 2020) aresummarized as follows:(Unit: Millions of yen)
Net sales

Operating profit

Ordinary profit

Profit attributableto owners ofparentFirst Quarter Fiscal 2020

70,624

6,653

6,674

5,205

First Quarter Fiscal 201976,465

7,026

6,298

4,859

(7.6)

(5.3)

6.0

7.1

Rate of change (%)

Net sales
Consolidated net sales decreased 7.6%, or ¥5,840 million compared with the corresponding
period of the previous year, to ¥ 70,624 million. Despite firm sales of semiconductor-related
products, this decrease was largely attributable to the impact of the novel coronavirus(COVID-19) pandemic, which triggered a downturn in overseas caustic soda market conditions,weak petrochemical product sales prices, and lower export volumes of dental materials to Europe
and the United States.
Cost of sales
Cost of sales decreased 9.4%, or ¥ 4,993 million compared with the corresponding period of theprevious year, to ¥ 48,349 million. This was due mainly to a downturn in raw material and fuelcosts.
SG&A expenses
SG&A expenses decreased 2.9%, or ¥473 million compared with the corresponding period of
the previous year, to ¥ 15,621 million. While R&D and other expenses increased, this decrease
largely reflected the drop in advertising expenses and such operating costs as travel expenses dueto the COVID-19 pandemic.

2Operating profit
Operating profit decreased 5.3%, or ¥373 million compared with the corresponding period of
the previous fiscal year, to ¥ 6,653 million. Despite lower raw material and fuel costs, Despite adownturn in raw material and fuel costs, this decrease in operating profit was mainly due to theimpact of COVID-19, which triggered a downturn in overseas caustic soda market conditions,and weak petrochemical product sales prices.
Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥748 million compared with the corresponding
period of the previous fiscal year.
As a result of the above, ordinary profit increased 6.0 %, or ¥375 million compared with thecorresponding period of the previous fiscal year, to ¥ 6,674 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses deteriorated by ¥182 million compared with the corresponding
period of the previous fiscal year.
As a result of the above, profit before income taxes increased 3.1 %, or ¥193 million comparedwith the corresponding period of the previous fiscal year, to ¥ 6,351 million.
Profit after deducting income taxes calculated in an appropriate way increased 11.8%, or ¥582
million compared with the corresponding period of the previous fiscal year, to ¥ 5,512 million.
Profit attributable to owners of parent increased 7.1%, or ¥345 million compared with thecorresponding period of the previous fiscal year, to ¥ 5,205 million.

3

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

Specialty
Products

CementLife &
Amenity

Others

Total

Adjustment

Figures inquarterly
consolidated
profitstatement

First Quarter
Fiscal 2020
First Quarter
Fiscal 201919,817

12,572

20,06912,83914,78280,080(9,456)70,62424,292

12,11821,48013,513

15,811

87,216(10,751)

76,465Rate of change (%)(18.4)

3.7

(6.6)

(5.0)

(6.5)

(8.2)

-

(7.6)

Operating profit(Unit: Millions of yen)
Reportable segment

First Quarter
Fiscal 2020
First Quarter
Fiscal 2019
Rate of change (%)

Adjustment

Figures inquarterly
consolidated
profitstatement

7,407

(754)

6,653

942

7,741

(715)

7,026

43.4

(4.3)

-

(5.3)

OthersChemicals

Specialty
Products

Cement

2,586

1,321

1,444

704

1,351

3,868

1,598

666

665

(33.1)(17.4)

116.7

5.8

Life &
Amenity

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

Chemicals
Caustic soda earnings declined. This downturn in earnings was largely due to the drop in sales
volumes in Japan owing to the spread of COVID-19 and a deterioration in overseas market
conditions.
Vinyl chloride monomer (VCM) earnings decreased. Despite a downturn in manufacturing costs
as a result of the drop in domestic naphtha prices, this decrease in earnings was mainly
attributable to COVID-19, which placed downward pressure on overseas market conditions.
Results in vinyl chloride resin were essentially in line with the corresponding period of theprevious fiscal year. While sales volumes were weak, this largely reflected the Company’s ability tomaintain the spread between raw material costs and selling prices.
As a result of the above, segment net sales decreased 18.4% compared with the corresponding
period of the previous fiscal year, to ¥19,817 million and operating profit decreased 33.1% to¥ 2,586 million. The segment reported lower earnings on lower sales.

4Specialty Products
Semiconductor-grade polycrystalline silicon results were also in line with the corresponding
period of the previous fiscal year owing to firm sales on the back of the introduction of 5G and
an increase in remote work.
Earnings from high-purity chemicals for electronic manufacturing increased. This was due to anincrease in the volume mainly overseas.
Both sales volumes and earnings of fumed silica at Tokuyama Chemicals (Zhejiang) Co., Ltd.
decreased owing largely to trade friction between China and the United States.
As a result of the above, segment net sales increased 3.7% compared with the corresponding
period of the previous fiscal year, to ¥12,572 million and operating profit decreased 17.4% to¥1,321 million. The segment reported lower earnings on higher sales.
CementCement earnings increased. Despite a downturn in export volumes as a result of COVID-19, thisupswing in earnings reflected the limited impact on domestic shipments and successful steps toreduce manufacturing costs on the back of a decline in raw material prices.
As a result of the above, segment net sales decreased 6.6% compared with the corresponding
period of the previous fiscal year, to ¥ 20,069 million and operating profit increased 116.7% to¥1,444 million. The segment reported higher earnings on lower sales.
Life & Amenity
Pharmaceutical ingredients and intermediates earnings increased, owing mainly to a robust sales
volume of generic pharmaceuticals.
Earnings from plastic lens-related materials decreased as a result of COVID-19, which pushed
down export volumes of photochromic materials for eyeglass lenses to Europe and the UnitedStates.
Impacted by the spread of COVID-19, export volumes of dental materials to Europe and theUnited States also declined resulting in a drop in earnings
Sales of medical diagnosis systems increased. This largely reflected an increase in sales volumesof laboratory information systems and laboratory automation systems.
As a result of the above, segment net sales decreased 5.0% compared with the corresponding
period of the previous fiscal year, to ¥12,839 million and operating profit increased 5.8% to¥704 million. The segment reported higher earnings on lower sales.

5(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2020, total assets amounted to ¥ 376,444 million, an decrease of ¥ 7,002 million
compared with those as of March 31, 2020.
This decrease primarily reflects the decrease of notes and accounts receivable - trade and cash
and deposits of ¥6,701 million, and ¥4,269 million respectively, despite the increase ofinvestment securities due to valuation of investment securities and merchandise and finishedgoods, of ¥1,302 million and ¥1,064 million, respectively.
Total liabilities amounted to ¥ 191,354 million, down ¥ 11,663 million compared with those asof March 31, 2020.
The principal factors are a decrease in notes and accounts payable - trade, long-term loans
payable and current portion of long-term loans payable, other current liabilities mainly due toaccounts payable – facilities paid, and income taxes payable of ¥4,218 million, ¥2,761 million,¥2,669 million, and ¥1,779 million, respectively.
Net assets totaled ¥185,090 million, an increase of ¥4,660 million compared with those as ofMarch 31, 2020.
This mainly reflected the increase of retained earnings primarily due to posting profit attributableand valuation difference on available-for-sale securities of ¥2,770 million and ¥929 million
respectively.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Notwithstanding anxieties toward the business environment going forward due to uncertainty
surrounding the spread of COVID-19, fluctuations in foreign exchange rates as well as raw
material and fuel prices, and other factors, Tokuyama’s business performance is currently trending
within anticipated parameters. Therefore, the Company has not revised the performance
forecasts, announced on May 15, 2020. Details will be disclosed in a timely manner should theneed to revise performance forecasts.
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. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
6/30/2020

3/31/2020
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

81,52472,92934
18,506
10,051
16,0884,823(108)
203,849

77,25566,22734
19,5709,971
16,152
5,168(104)
194,276108,636(78,109)
30,526
465,761(420,631)
45,12922,488(20,024)
2,463
33,3635,011(2,370)2,641
9,067
123,192

109,245(78,481)
30,763464,949(420,685)
44,26322,721(20,187)
2,534
33,5195,789(2,640)3,149
9,530
123,761

3
59
1,594
1,657

1
54
1,571
1,627

19,385
2,302
19,164
9,569
4,382
(56)
54,747
179,597
383,447

20,6872,325
18,922
10,0134,890(59)
56,780182,168
376,444

3/31/2020
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 decommissioning and removal
Provision for product warranties
Provision for loss on compensation for damage
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)
6/30/2020

42,795
3,082
16,106
870
2,896
3,175
5,159
439
84
84
20,545
95,241

38,576
3,057
15,987
977
1,117
1,765
4,942
378
103
144
17,87584,927

94,255
2,028
204
239
86
944
529
158
196
2,277
6
6,848
107,775
203,017

91,613
2,479
233
246
100
1,514
592
152
159
2,273
6
7,054
106,426
191,354

10,00020,018
137,665(1,809)165,874

10,00020,072
140,436(1,809)168,700

332
(35)
703
1,986
2,986
11,568
180,429
383,447

1,261
(28)
647
1,990
3,870
12,520185,090
376,444(2) Quarterly 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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Fiduciary obligation expenses
Comprehensive welfare group term insurance expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on disaster
Loss on disposal of non-current assets
Provision for loss on compensation for damage
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

Q1 FY2019 YTD
76,46553,34323,121(Millions of yen)
Q1 FY2020 YTD
70,624
48,34922,274

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

9,933
5,688
15,621
6,653

89
191
247
421
775
1,725

19
246
226
430
552
1,476

443
434
180
1,395
2,453
6,298

402
414
186
452
1,455
6,674

4
12
16

26
－
26

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

－
84
99
105
59
348
6,351
839
5,512
306
5,205

(3) Quarterly 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 method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

10

Q1 FY2019 YTD
4,929(Millions of yen)
Q1 FY2020 YTD
5,512

(232)
6
(646)
(78)

917
7
66
3

(27)

(116)

(978)
3,951

878
6,390

3,884
67

6,089
301

(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.
(Additional Information)(Application of tax effect accounting associated with the transition from the consolidated taxation
system to the group tax sharing system)
With regard to the transition to the group tax sharing system established under the “Act for Partial
Amendment of the Income Tax Act, etc.” (Act No. 8 of 2020) and the items for which thenonconsolidated taxation system was revised in line with the transition to the group tax sharing
system, pursuant to Paragraph 3 of the “Practical Solution on the Treatment of Tax EffectAccounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing
System” (ASBJ PITF No. 39, issued on March 31, 2020), the Company and certain domestic
consolidated subsidiaries did not apply the provision of Paragraph 44 of the “Implementation
Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, issued on February 16, 2018), andthe amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the
tax laws before the revision.

11

(5) Segment information
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 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 2020 (April 1, 2020– June 30, 2020)
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

Cement19,627
189
19,817
2,586

9,858
2,713
12,572
1,321

20,02345
20,0691,444Life &
Amenity

12,592
246
12,839704

Others*1

8,521
6,260
14,782
1,351

Total

70,624
9,456
80,0807,407

Adjustment*2

Figures inquarterly
consolidated
profitstatement*3(9,456)(9,456)(754)

70,62470,624
6,653*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.

12