Summary of Consolidated Financial Statements for the Second Quarter Fiscal 2019 (JPGAAP)
October 31, 2019
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 for the filing of the quarterly consolidated financial statements: November 12, 2019
Scheduled date of dividends payout :December 2, 2019
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 second quarter ended Sept. 30, 2019 (Apr. 1, 2019 – Sept. 30, 2019)(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)
[%]

Second Quarter Fiscal 2019
152,749
0.0
14,612
Second Quarter Fiscal 2018
152,699
4.5
17,019(Note) Comprehensive income: 2nd Q FY19: 9,359 million yen [(25.9) %]2nd Q FY18: 12,625 million yen [81.9 %](14.1)(9.8)

Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Second Quarter Fiscal 2019
Second Quarter Fiscal 2018

10,40012,833

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

13,643
15,470(11.8)(1.5)

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

149.75
184.55-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(19.0)-(2) Consolidated financial position

Sep 30, 2019
Mar 31, 2019

Total assets

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

373,181
171,012379,630
163,525
Sep 30, 2019: 160,118 million yen(Reference) Shareholders' equity:

42.9
2,305.30
40.2
2,199.83
Mar 31, 2019: 152,781 million yen

2. Dividends（Period）

1st quarter(yen)

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

Fiscal 2018, ended
25.00
Mar 31, 2019
Fiscal 2019, ending
35.00
Mar 31, 2020
Fiscal 2019
（Forecast）(Note) Revision of the latest dividends forecast: No

(yen)

Total

(yen)

(yen)

-

25.00

50.00

-

35.00

70.00

3. Consolidated performance forecast for fiscal 2019 (Apr. 1, 2019 – Mar. 31, 2020)(% 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 2019
322,000 (0.8)
35,000 (0.7)
34,000 1.8(Note) Revision of the latest consolidated performance forecast: Yes(millions ofyen)

26,000[%](24.2)(yen)

374.35* The Company announced the release, “Notice concerning Revision of Performance Forecast for Full
Fiscal 2019,” on Oct. 31, 2019.
1

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2019 – Sept. 30, 2019): 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 (5) Notes on
Quarterly Consolidated Financial Statements (Change of accounting process specific to preparing quarterly
consolidated financial statement)” on page 14 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:

No
No
No
No

(4) Number of shares issued (in common stock)i.

Number of shares issued at end of period(including treasury stock):ii. Number of treasury stock at end of period:iii. Average number of shares over period:

Second Quarter
Fiscal 2019:
Second Quarter
Fiscal 2019:
Second Quarter
Fiscal 2019:69,934,375
477,683
69,454,574

Fiscal 2018: 69,934,375
Fiscal 2018:

482,765

Second Quarter
69,538,081
Fiscal 2018:(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures in linewith 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
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

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. 7

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

P. 8(1) Quarterly Consolidated Balance Sheets…………………

P. 8(2) Quarterly Consolidated Statements of Income…………………

P. 10(3) Quarterly Consolidated Statements of Comprehensive Income…………………

P. 11(4) Consolidated Statements of Cash Flows…………………

P. 12(5) Notes on Quarterly Consolidated Financial Statements…………………

P. 14(6) Segment Information…………………

P. 15(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 second quarter fiscal 2019 (accumulated figures, April 1, 2019 September 30, 2019) are summarized as follows:(Unit: Millions of yen)
Net sales

Operating profit

Ordinary profit

Profit/loss
attributable toowners of parent

Second Quarter Fiscal 2019

152,749

14,612

13,643

10,400

Second Quarter Fiscal 2018

152,699

17,01915,47012,8330.0(14.1)(11.8)(19.0)

Rate of change (%)

Net sales
Consolidated net sales increased 0.0%, or ¥50 million compared with the corresponding periodof the previous year, to ¥152,749 million. Despite weak sales of major products, this increase
was largely attributable to the inclusion of a subsidiary in the Company’s scope of consolidationin July, 2018.
Cost of sales
Cost of sales increased 1.0%, or ¥1,057 million compared with the corresponding period of theprevious year, to ¥106,261 million. This increase largely reflected the upswing in attributable tothe inclusion of a subsidiary in the Company’s scope of consolidation in July, 2018.
SG&A expenses
SG&A expenses increased 4.6%, or ¥1,400 million compared with the corresponding period of
the previous year, to ¥31,876 million. In addition to the increase in advertising expenses
associated with the release of new products to the market, this increase largely reflected R&D
expenses of thermal management material.
Operating profit
Operating profit decreased 14.1%, or ¥2,407 million compared with the corresponding period of
the previous fiscal year, to ¥14,612 million. This was largely attributable to a weak sales volume
in major products.

2

Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥580 million compared with the corresponding
period of the previous fiscal year.
As a result of the above, ordinary profit decreased 11.8%, or ¥1,826 million compared with thecorresponding period of the previous fiscal year, to ¥13,643 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses deteriorated by ¥668 million compared with the corresponding
period of the previous fiscal year.
As a result of the above, profit before income taxes decreased 15.7%, or ¥2,494 million
compared with the corresponding period of the previous fiscal year, to ¥13,410 million.
Profit after deducting income taxes calculated in an appropriate way decreased 18.5%, or ¥2,438
million compared with the corresponding period of the previous fiscal year, to ¥10,717 million.
Profit attributable to owners of parent decreased 19.0%, or ¥2,432 million compared with thecorresponding period of the previous fiscal year, to ¥10,400 million.

3

(Operating results by segment)
Tokuyama changed the management categorizations of a certain subsidiary effective from the first quarter of the
fiscal year under review. Data for the corresponding period of the previous fiscal year has been adjusted to reflect
this change to enable the year-on-year comparison presented as follows.

Net sales(Unit: Millions of yen)

Specialty
Products

CementLife &
Amenity

Others

Total

Adjustment

Chemicals

Figures inquarterly
consolidated
incomestatement

46,34824,60342,71927,72232,261

173,655(20,905)

152,749

48,176

26,81643,922

26,11328,177173,206(20,507)

152,699

(3.8)

(8.3)

(2.7)

6.2

14.5

0.3

-

0.0

Reportable segment

Second Quarter
Fiscal 2019
Second Quarter
Fiscal 2018
Rate of change (%)

Operating profit(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

Reportable segment
Chemicals

Specialty
Products

CementLife &
Amenity

Others

Total

Second Quarter
Fiscal 2019
Second Quarter
Fiscal 2018

7,511

2,813

1,185

1,562

2,462

15,535(923)

14,612

8,793

4,303

1,406

1,693

1,746

17,945(926)

17,019Rate of change (%)(14.6)(34.6)(15.7)

(7.8)

41.0

(13.4)-(14.1)(Note) Net sales and operating profit in each segment include inter-segment transactions.

Chemicals
Caustic soda earnings declined. Despite firm sales volume trends, this downturn in earnings waslargely due to the increase in raw material prices coupled with a deterioration in overseas market
conditions.
Vinyl chloride resin earnings increased due to the Company’s ability to maintain the spread
between raw material prices and selling prices.
Propylene oxide earnings decreased owing to a drop in sales volume for polyurethane, main
application.
Calcium chloride earnings declined. This largely reflected weak sales volume and an increase inlogistics costs.
As a result of the above, segment net sales decreased 3.8% compared with the corresponding
period of the previous fiscal year, to ¥46,348 million and operating profit decreased 14.6% to¥7,511 million. The segment reported lower earnings on lower sales.
4Specialty Products
Earnings from semiconductor-grade polycrystalline silicon and thermal management materials
declined due to a decrease in sales volume brought about by a delay in the recovery of thesemiconductor industry.
In high-purity chemicals for electronic manufacturing, its business result was almost same as thecorresponding period of the previous fiscal year. This was due to sales volume mainly overseas
recovered.
As a result of the above, segment net sales decreased 8.3% compared with the corresponding
period of the previous fiscal year, to ¥24,603 million and operating profit decreased 34.6% to¥2,813 million. The segment reported lower earnings on lower sales.
CementCement earnings decreased. Despite the partial positive flow on effects of a revision to selling
prices, this decrease was largely due to a decrease in sales volume and an increase in fixed costs
such as depreciation.
In the resource recycling business, its business result was almost same as the corresponding
period of the previous fiscal year.
In consolidated subsidiary, its business result was almost same as the corresponding period of theprevious fiscal year on the back of the robust shipping trends of ready-mixed concrete.
As a result of the above, segment net sales decreased 2.7% compared with the corresponding
period of the previous fiscal year, to ¥42,719 million and operating profit decreased 15.7% to¥1,185 million. The segment reported lower earnings on lower sales.
Life & Amenity
Earnings from plastic lens-related materials increased on the back of the robust shipping trendsof photochromic materials for eyeglass lenses.
Dental materials earnings decreased. Despite an increase in sales volume mainly overseas, thisdecrease was mainly due to the increase in advertising expenses associated with the release of
new products to the market.
Earnings from medical diagnosis systems increased. This largely reflected successful efforts tocapture large-scale laboratory automation system projects in Japan.
Earnings from ion exchange membranes decreased. This was due to a decrease in large-scale
projects.
As a result of the above, segment net sales increased 6.2% compared with the corresponding
period of the previous fiscal year, to ¥27,722 million and operating profit decreased 7.8% to¥1,562 million. The segment reported lower earnings on higher sales.

5(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of September 30, 2019, total assets amounted to ¥373,181 million, a decrease of ¥6,448
million compared with those as of March 31, 2019.
This decrease primarily reflects the decrease of notes and accounts receivable - trade of ¥13,357
million and other current assets due to receiving of damages claims relating to the plant
construction of the Tokuyama Malaysia Sdn. Bhd. of ¥5,501 million, despite the increase of cash
and deposits of ¥9,219 million and merchandise and finished goods of ¥3,287 million.
Total liabilities amounted to ¥202,169 million, down ¥13,935 million compared with those as ofMarch 31, 2019.
The principal factors are a decrease in notes and accounts payable - trade, long-term loans
payable and current portion of long-term loans payable, and income taxes payable of ¥5,560
million, ¥5,439 million, and ¥1,013 million, respectively.
Net assets totaled ¥171,012 million, an increase of ¥7,486 million compared with those as ofMarch 31, 2019.
This mainly reflected the increase of retained earnings of ¥8,662 million. This was primarily due
to posting profit attributable to owners of parent, despite decrease due to ¥1,188 million theforeign currency translation adjustment.

(Status of cash flows)
As of September 30, 2019, cash and cash equivalents were ¥77,331 million, an increase of¥9,339 million compared with those as of March 31, 2019.
Net cash provided by operating activities totaled ¥29,256 million, an increase of ¥6,897 million
compared with the corresponding period of the previous year.
Principal items included profit before income taxes of ¥13,410 million , decrease of accounts
receivable of 12,990 million and depreciation cost of ¥7,664 million.
Net cash used in investing activities totaled ¥10,728 million, an increase of ¥3,124 million
compared with the corresponding period of the previous year.
Major contributory factor was payments for purchases of property, plant and equipment of¥10,014 million.
Net cash used in financing activities amounted to ¥8,549 million, a decrease of ¥2,404 million
compared with the corresponding period of the previous year.
This was primarily attributed to payments for repayment of long-term loans payable of ¥6,291
million.
6

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Based on the current performance trend, the Company has revised the performance forecast,announced on April 26, 2019. For further details, please see the Company’s news release, “Noticeconcerning Revision of Performance Forecast for Full Fiscal 2019,” dated October 31, 2019.
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.

7

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
9/30/2019

3/31/2019
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

8

68,61380,35830
16,4589,554
17,462
10,554△94
202,936

77,83267,00030
19,746
8,424
15,4085,053△86193,409106,214△76,233
29,981
459,535△414,813
44,721
22,106△19,905
2,201
32,296
4,548△2,2372,311
4,592
116,104

106,958△77,12129,836461,276△417,440
43,83622,122△19,965
2,157
33,332
4,643△2,5062,137
6,845
118,145

208
71
1,693
1,973

7
71
1,617
1,696

21,7182,444
21,091
9,796
3,621
△57
58,614
176,693379,630

21,1482,356
21,882
10,222
4,377△56
59,931
179,772
373,1813/31/2019
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
Provision for restructuring
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

9(Millions of yen)
9/30/201947,268
4,361
12,667
758
3,816
2,664
3,569
－
137
91
233
17,68093,24841,7083,463
12,535
736
2,803
2,852
3,151
246
73
91
191
16,45984,312

109,411
1,767
220
224
48
1,546
－
260
222
2,149
6
6,999
122,856
216,104

104,103
1,617
204
215
57
1,819
303
227
222
2,191
6
6,888
117,856
202,169

10,00020,018
121,901△1,823150,095

10,00020,018130,563△1,805
158,775△1,566
△61
1,672
2,640
2,685
10,743
163,525
379,630△1,584
△52
484
2,495
1,342
10,893
171,012373,181(2) Quarterly Consolidated Statements of Income
Millions of yen
Q2 FY2018 YTD
Q2 FY2019 YTD
152,699
152,749
105,203106,261
47,49546,488Net 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
Provision for decommissioning and removals
Fiduciary Obligation expenses
Foreign exchange losses
Cost of loans payable
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchase
Gain on sales of investment securities
Subsidy income
Gain on insurance claims
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on disaster
Loss on tax purpose reduction entry of non-current assets
Loss on disposal of non-current assets
Litigation expenses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

10

20,215
10,26030,476
17,01921,08910,78631,876
14,612

50
246
450
498
1,680
2,925

90
207
435
483
1,348
2,564

1,577
－
479
－
884
1,533
4,474
15,470

866
550
507
489
－
1,120
3,533
13,643

18
964
1
33
45
1,063

8
－
2
13
83
108

9
－
19
444
154
627
15,905
2,749
13,155322
12,833

16
45
1
277
－
341
13,4102,693
10,717316
10,400(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

11

Millions of yen
Q2 FY2018 YTD
Q2 FY2019 YTD
13,155
10,717
△315
89
△44
△113

△8
8
△1,085
△144

△145

△127

△529
12,625△1,3589,359

12,284
341

9,057
301

(4) Consolidated Statements of Cash Flows
Millions of yen
Q2 FY2018 YTD
Q2 FY2019 YTD
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment
Loss (gain) on sales of investment securities
Share of loss (profit) of entities accounted for using equity method
Gain on bargain purchase
Subsidy income
Interest expenses
Cost of loans payable
Loss on tax purpose reduction entry of non-current assets
Gain on insurance claims
Loss (gain) on disposal of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Compensation for damage received
Compensation for damage paid
Proceeds from insurance income
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from purchase of shares of subsidiaries resulting in change inscope of consolidation
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Long-term loan advances
Collection of long-term loans receivable
Subsidies received
Other, net
Net cash provided by (used in) investing activities

12

15,905
7,083
△717
70
△645
△296
△48
△9
△1
△450
△964
△33
1,577
884
19
△45
444
9,642
△3,915△409
280△2,493923
26,800738△1,590－－45△3,63422,35913,410
7,664
476
36
△628
△297
347
7
△2
△435
－
△13
866
－
1
△83
277
12,990△266△1,130△5,190△459△103
27,467
843
△874
5,865
△832
83
△3,29629,256△18439△8,485
67
△12
3

△51
171
△10,014
52
△9
3

583

－

－

△110

△1
115
33
△329
△7,604

△2
91
13
△871
△10,728

Millions of yen
Q2 FY2017 YTD
Q2 FY2018 YTDCash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Decrease (increase) in treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13

△264
59,315△67,720△1,387
△208
△303
△385
△10,954
116
3,917
66,80770,724△1,494
1,503△6,291△1,735△129
2△405△8,549△638
9,339
67,991
77,331

(5) 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 second 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.

14

(6) Segment information
Second Quarter Fiscal 2018 (accumulated figures, Apr. 1, 2018– Sept. 30, 2018)
1. Information on sales and profit by reportable segment(Millions of yen)
Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(20,507)(20,507)(926)

152,699
152,699
17,019

Reportable segments

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

Chemicals

Specialty
Products

Cement47,815360
48,176
8,793

20,476
6,340
26,816
4,303

43,489432
43,922
1,406Life &
Amenity

25,095
1,017
26,113
1,693

Others*1

Total

15,822
12,35528,177
1,746

152,699
20,507173,206
17,945*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 income has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others”
segment’s profit.

2. Items related to the changes in reportable segment
The Company posted ¥964 million of gain on bargain purchase in the “Others” segment in the second quarter
consolidated accounting period for the fiscal year ending March 31, 2019.

Second Quarter Fiscal 2019(accumulated figures, Apr. 1, 2019– Sept. 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

Cement45,802545
46,348
7,511

18,7995,804
24,603
2,813

42,467251
42,7191,185Life &
Amenity

26,759963
27,722
1,562

Others*1

Total

18,921
13,34032,261
2,462

152,749
20,905
173,655
15,535Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(20,905)(20,905)(923)

152,749
152,749
14,612*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 income has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others”
segment’s profit.
2．Changes in reportable segments
In accordance with the change in management categorizations of a certain subsidiary implemented from the firstquarter of the fiscal year under review, a certain subsidiary previously included in the Others segment have now
been included in the Life & Amenity segment.
Segment information for the corresponding period of the previous fiscal year has been prepared in accordance withthis change.
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