Summary of Consolidated Financial Statements for the First Quarter Fiscal 2015 (JPGAAP)
July 31, 2015
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL http://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.
+81-3-6205-4832
Scheduled date for the filing of the quarterly consolidated financial statements : August 11, 2015
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, 2015 (April 1, 2015 - June 30, 2015)(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 2015
73,7403.5
2,939(47.3)
1,486(67.3)First Quarter Fiscal 2014
71,215
10.6
5,579
79.9
4,553
82.1
(Note) Comprehensive income: 1st Q FY15: 2,173 million yen [(50.5)%] 1st Q FY14: 4,390 million yen [51.1%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]First Quarter Fiscal 2015
First Quarter Fiscal 2014

60
3,575

(98.3)
76.5

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

0.17
10.28

-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

June 30, 2015
Mar. 31, 2015

548,658
171,350
554,527
169,445
June 30, 2015: 164,460 million yen(Reference) Shareholders' equity:

30.0
472.7829.3
467.36
Mar. 31, 2015: 162,577 million yen

2. Dividends（Period）

1st quarter(yen)

Fiscal 2014, ended
Mar 31, 2015
Fiscal 2015, ending
Mar 31, 2016
Fiscal 2015
（Forecast）

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

-

(yen)

Total

(yen)

(yen)

0.00

-

0.00

0.00

0.00

-

0.00

0.00

-

(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for fiscal 2015 (April 1, 2015 - March 31, 2016)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating income Ordinary income Profit
per shareowners of parent(millions

of
yen)

[%]

(millions

of
yen)

[%]

(millions

of
yen)

[%]

(millions

of
yen)

[%]

(yen)

First Half
148,000
2.9
5,500 (48.1)
2,500 (69.8)
500
－
1.44
Fiscal 2015
Fiscal 2015
309,000
2.3
18,0007.8
12,000
7.1
6,000
－
17.25
(Note) Revision of the latest consolidated performance forecast: Yes*The Company announced the release, “Notice concerning Revision of Performance Forecast,” on July 31, 2015.
-1-

*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
Yes
i. Changes of accounting policies by revision of accounting standards:
No
ii. Changes of accounting policies other than the above:Noiii. Changes in accounting estimates:
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 2015:
First Quarterii. Number of treasury stock at end of period:
Fiscal 2015:
First Quarteriii. Average number of shares over period:
Fiscal 2015:

349,671,876

Fiscal 2014:

349,671,876

1,811,560

Fiscal 2014:

1,805,814

347,862,055

First Quarter
Fiscal 2014:

347,892,060(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-

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

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

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

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

P. 11(4) 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 2015 (April 1, 2015 - June 30, 2015) aresummarized as follows:(Unit: Millions of yen)
Net sales

Operating income

Ordinary income

Profit attributableto owners ofparentFirst Quarter Fiscal 2015

73,740

2,939

1,486

60

First Quarter Fiscal 2014

71,215

5,579

4,553

3,575

3.5

(47.3)(67.3)(98.3)

Rate of change (%)

Net sales
Consolidated net sales increased 3.5%, or ¥2,525 million compared with the corresponding
period of the previous year, to ¥73,740 million. Despite a declined sales volume in the cementbusiness and weak selling prices of petroleum products on the back of a downturn in domestic
naphtha prices, this was largely attributable to the upswing in sales volumes of soda ash andcalcium chloride as well as solar-grade polycrystalline silicon.
Cost of sales
Cost of sales increased 10.4%, or ¥5,210 million compared with the corresponding period of theprevious year, to ¥55,380 million. Despite a downturn in raw material costs as a result of thedrop in domestic naphtha prices, this was owing mainly to higher depreciation expenses at
Tokuyama Malaysia Sdn. Bhd.
SG&A expenses
SG&A expenses decreased 0.3%, or ¥44 million compared with the corresponding period of theprevious year, to ¥15,420 million. Despite the increase in distribution costs associated with theincrease in sales volumes of such products as soda ash and calcium chloride, this decreaseprimarily reflects Companywide cutbacks in expenses.
Operating income
Operating income decreased 47.3%, or ¥2,639 million compared with the corresponding periodof the previous year, to ¥2,939 million, due mainly to the increase in depreciation expenses at
Tokuyama Malaysia Sdn. Bhd. and the decrease in sales volumes of cement.
-2-Non-operating income/expenses, Ordinary income
Non-operating income/expenses deteriorated ¥426 million compared with the corresponding
period of the previous year, due chiefly to the posting of trial production expenses at Tokuyama
Malaysia Sdn. Bhd..
As a result of the above, ordinary income decreased 67.3%, or ¥3,066 million compared with thecorresponding period of the previous year, to ¥1,486 million.
Extraordinary income/losses, Income before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved by ¥10 million compared with the corresponding periodof the previous year.
As a result of the above, income before income taxes decreased 67.2%, or ¥3,056 million
compared with the corresponding period of the previous year, to ¥1,488 million.
Profit decreased 91.6%, or ¥3,414 million compared with the corresponding period of theprevious year, to ¥313 million. Profit attributable to owners of parent decreased 98.3%, or¥3,515 million compared with the corresponding period of the previous year, to ¥60 million.

-3-

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

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

14,28912,952

83,615(9,875)73,74019,396

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

5.3

1.9

0.8

4.4

-

3.5

Reportable segment

First Quarter
Fiscal 2015
First Quarter
Fiscal 2014
Rate of change (%)

Chemicals

Specialty
Products

Cement22,875

13,08020,41822,694

11,1490.8

17.3Life &
Amenity

Operating income(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

3,670

(731)

2,939

1,567

6,508

(928)

5,579

(33.3)(43.6)-(47.3)

Reportable segment

First Quarter
Fiscal 2015
First Quarter
Fiscal 2014
Rate of change (%)

Others

Total

1,718

1,045

1,477

1,192

(36.3)

44.1

Chemicals

Specialty
Products

Cement1,493(1,528)

941

1,278

992

16.9

-

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

Chemicals
Sales of caustic soda were down compared with the corresponding period of the previous year.
While sales volumes were essentially unchanged from the corresponding period of the previous
fiscal year, this decrease was largely attributable to weak trends in selling prices.
With regard to vinyl chloride monomer (VCM), profitability improved on the back of a drop in
raw material costs due mainly to the downturn in domestic naphtha prices.
Sales of polyvinyl chloride (PVC) were declined compared with the corresponding period of theprevious year. This was due mainly to the decline in sales volumes owning mainly to thecontinued slowdown in housing starts.
With regard to soda ash and calcium chloride, sales increased compared with the corresponding
period of previous fiscal year. This largely reflected the startup of operations by Tokuyama &Central Soda Inc. in October 2014.
As a result of the above, segment net sales increased 0.8% compared with the corresponding
period of the previous year, to ¥22,875 million and operating income increased 16.9% to ¥1,493
million. The segment reported higher earnings on higher sales.
-4-Specialty Products
Sales of semiconductor-grade polycrystalline silicon were down compared with thecorresponding period of previous fiscal year. Despite firm trends in mobile terminal demand
including smartphones, the decline was primarily due to the downturn in sales volumes on theback of such factors as inventory adjustments with respect to the supply chain.
While sales of solar-grade polycrystalline silicon increased on the back of higher sales volumes,reflecting the start of sales and marketing by Tokuyama Malaysia Sdn. Bhd. in October 2014,
earnings deteriorated due to such factors as the impact of depreciation expenses.
Sales of fumed silica increased compared with the corresponding period of previous fiscal year
due to steady sales of such applications as a polishing material for semiconductors.
With regard to high-purity chemicals for electronics manufacturing, sales increased comparedwith the corresponding period of the previous year, owing to strong sales in such applications as
semiconductor and liquid crystal production.
As a result of the above, the segment reported a loss on higher sales. Segment net sales increased
17.3% compared with the corresponding period of the previous year, to ¥13,080 million.
However, this segment incurred an operating loss of ¥1,528 million in the period under review.

CementIn the cement business, sales declined compared with the corresponding period of previous fiscal
year, owing mainly to sluggish trends in private-sector demand in Japan impacted by such factors
as delays in construction attributable to the shortage of labor in the construction industry.
In the recycling and environment-related business, the Company accepted a lower volume ofwaste compared with the corresponding period of previous fiscal year, owing mainly to a drop in
the volume of clinker ash production.
With regard to consolidated subsidiaries, sales increased compared with the previous fiscal year,
mainly because Hiroshima Tokuyama Ready Mixed Concrete Co., Ltd. launched its operations inAugust 2014.
As a result of the above, segment net sales increased 5.3% compared with the corresponding
period of the previous year, to ¥20,418 million and operating income decreased 36.3% to ¥941
million. The segment reported lower earnings on higher sales.

Life & Amenity
Sales of active pharmaceutical ingredients decreased compared with the corresponding period of
the previous year, owing mainly to the drop in the sales volumes of generic pharmaceuticals.
With regard to plastic lens-related materials, sales volumes of photochromic dye materials-5-increased. As a result of this, sales increased compared with the corresponding period of theprevious year.
With regard to microporous film, sales of such applications as sanitary articles including
disposable diapers increased. As a result of this, sales increased compared with the corresponding
period of the previous year.
With regard to polyolefin film, sales were declined compared with the corresponding period of
the previous year. Despite firm trends in sales mainly for application in packaging materials for
products sold at convenience stores, this decrease was largely the result of weak trends in selling
prices on the back of the decline in domestic naphtha prices.
With regard to medical diagnosis systems, sales were up compared with the corresponding periodof the previous year. This was owing primarily to the upswing in large-scale orders in Japan forblood testing products.
As a result of the above, segment net sales increased 1.9% compared with the corresponding
period of the previous year, to ¥14,289 million and operating income increased 44.1% to ¥1,718
million. The segment reported higher earnings on higher sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2015, total assets amounted to ¥548,658 million, a decrease of ¥5,869 million
compared with those as of March 31, 2015.
This decrease largely reflected the decline of ¥5,718 million in notes and accounts
receivable―trade.
Total liabilities amounted to ¥377,308 million, down ¥7,774 million compared with those as ofMarch 31, 2015.
This largely reflected the downturn in the balances of long-term loans payable and current
portion of long-term loans payable, commercial paper, and notes and accounts payable―trade of¥2,853 million, ¥2,000 million, and ¥1,723 million, respectively.
Net assets totaled ¥171,350 million, an increase of ¥1,905 million compared with those as ofMarch 31, 2015.
The principal movement was the increase in valuation difference on available-for-sale securitiesof ¥1,305 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 30, 2015. For further details, please see the Company’s news release, “Noticeconcerning Revision of Performance Forecast,” dated July 31, 2015.
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. Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
3/31/2015
6/30/2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables and investment assets
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-8-61,364
69,37130
55,053
15,456
11,60618,026
4,772
8,396
(103)
243,975

26,87463,65338
87,303
16,20912,766
18,416
4,788
9,267
(151)
239,165

137,347(74,090)
63,257546,388(401,461)
144,927
23,261(20,974)
2,286
33,149
2,135
(936)
1,199
8,511
253,331

137,686(74,859)
62,827548,788(405,247)
143,540
23,415(21,127)
2,287
33,169
2,080
(935)
1,145
7,928
250,899

5,097
44
4,641
9,784

4,856
46
4,186
9,088

31,062
3,248
669
8,765
4,015
(22)
(303)
47,436
310,552
554,527

32,762
3,234
667
9,300
3,864
(22)
(302)
49,504309,492
548,658

Millions of yen
3/31/2015
6/30/2015
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Commercial papers
Current portion of long-term loans payable
Current portion of bonds
Lease obligations
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for repairs
Provision for product warranties
Provision for loss on compensation for damage
Provision for loss on purchase contract
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
Provision for loss on purchase contract
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
Non-controlling interests
Total net assets
Total liabilities and net assets-9-40,567
12,212
3,000
25,110
5,000
340
1,318
－
1,911
1,284
132
50
3,183
23,186117,298

38,843
12,5761,000
27,222
5,000
326
1,058
8
1,349
1,898
111
－
3,178
22,279114,853

45,000191,552
981
6,409
226
3,458
574
91
6,250
1,162
5
12,071
267,783
385,082

45,000186,587
929
7,011
203
3,750
521
91
5,365
1,188
5
11,798262,455
377,308

53,45857,67039,286(1,434)
148,981

53,45857,67039,343(1,435)
149,037

5,829
330
4,196
3,239
13,596
6,868
169,445554,527

7,135
324
4,725
3,238
15,423
6,889
171,350548,658

(2) 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 income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Dividends Income Of Group Term Insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchaseState subsidy
reversal of Provision for loss on purchase contract
Gain on insurance adjustment
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on reduction of non-current assets
Loss on disposal of non-current assets
Total extraordinary losses
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-10-

Millions of yen
Q1 FY2014
Q1 FY2015
71,21573,74050,17055,38021,044
18,3599,006
6,458
15,464
5,579

9,260
6,159
15,420
2,939

23
344
215
209
231
1,025

36
251
199
198
218
904

1,157
893
2,051
4,553

1,175
1,181
2,356
1,486

46
5
－
－
－
51

1
－
19
11
16
49

32
－
27
59
4,545
816
3,728
153
3,575

－
23
24
47
1,488
1,175
313
253
60

(3) 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
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-11-

Millions of yen
Q1 FY2014
Q1 FY2015
3,728
313
1,700
(3)
(1,001)
28
(62)
661
4,390

1,308
(5)
570
(1)
(11)
1,860
2,173

4,296
93

1,887
286

(4) Segment information
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. Specifically, 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.

First Quarter Fiscal 2015 (April 1, 2015– June 30, 2015)
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

Cement22,723
152
22,875
1,493

9,267
3,812
13,080(1,528)20,38730
20,418941

Life &
Amenity

13,761527
14,289
1,718

Others*1

Total

7,600
5,351
12,952
1,045

73,7409,875
83,615
3,670

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(9,875)(9,875)(731)

73,74073,7402,939*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 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.

-12-