Summary of Consolidated Financial Statements for the Second Quarter Fiscal 2021 (JPGAAP)
October 28, 2021
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 :December 1, 2021Preparation 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 Sep. 30, 2021 (Apr. 1, 2021 – Sep. 30, 2021)(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)
[%]

Second Quarter Fiscal 2021
132,660(7.4)
11,665(9.9)
11,998(4.0)
Second Quarter Fiscal 2020
143,289(6.2)
12,941_(11.4)
12,498(8.4)(Note) Comprehensive income: 2nd Q FY21: 9,454 million yen [(19.2)%] 2nd Q FY20: 11,696 million yen [25.0%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Second Quarter Fiscal 2021
Second Quarter Fiscal 2020

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

128.61143.90Net assets per
share
(yen)

2,858.68
2,758.37

9,257
9,994

(7.4)
(3.9)

Total assets

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

Shareholders’Equity ratio(%)

396,866
386,794

213,771
205,26151.8
51.3(2) Consolidated financial position

September 30, 2021
March 31, 2021
(Reference) Shareholders' equity:

Sep. 30, 2021: 205,688 million yen

Mar. 31, 2021: 198,561 million yen(Note)The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Corporate Accounting Standard No.
29, March 31, 2020), etc. effective from the beginning of the first quarter ended June 30, 2021 in accordance with transitional
treatment. For more details, please refer to “2. Quarterly Consolidated Financial Statements and (5) Notes on Quarterly
Consolidated Financial Statements (Changes in accounting policy)” on page 15 of the Accompanying Materials to this Summaryof Quarterly Consolidated Financial Statement.

2. Dividends（Period）

1st quarter(yen)

Fiscal 2020, ended
Mar 31, 2021
Fiscal 2021, ending
Mar 31, 2022
Fiscal 2021
（Forecast）

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

-

35.00

-

35.00

(yen)

(Note) Revision of the latest dividends forecast: No

1

(yen)

Total
(yen)

-

35.00

70.00

-

35.00

70.00

3. Consolidated performance forecast for fiscal 2021 (April 1, 2021 - March 31, 2022)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating profit Ordinary profit Profit
per shareowners of parent

Fiscal 2021

(millions ofyen)

293,000

[%]

(3.1)

(millions of
yen)

[%]

22,000 (28.9)(millions of
yen)

[%]

22,000 (28.6)(millions ofyen)

22,000[%](10.3)(yen)

305.66(Note) Revision of the latest consolidated performance forecast: Yes* The Company announced the release, “Notice concerning Revision of Performance Forecast for Fiscal 2021,” on Oct. 28, 2021.

*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 (5) Notes on
Quarterly Consolidated Financial Statements (Application of accounting methods specific to the preparation of
the quarterly consolidated financial statements)” on page 14 of the Accompanying Materials to this Summaryof Quarterly Consolidated Financial Statement.
(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes in accounting policy by revision of accounting standards:
ii. Changes in accounting policy other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:

Yes
No
No
No

(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (5) Notes on
Quarterly Consolidated Financial Statements (Changes in accounting policy)” on page 15 of the Accompanying
Materials to this Summary of Quarterly Consolidated Financial Statement.
(4) Number of shares issued (in common stock)
Number of shares issued at end of period 2nd Quarteri.
(including treasury stock):
Fiscal 2021:
2nd Quarterii. Number of treasury stock at end of period:
Fiscal 2021:
2nd Quarteriii. Average number of shares over period:
Fiscal 2021:

72,088,327

Fiscal 2020:

72,088,327

135,900

Fiscal 2020:

103,403

71,976,167

2nd Quarter
Fiscal 2020:

69,456,302(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.
(Access to supplementary explanations on business results)
The Company also supplementary materials “Presentation for IR Meeting” through TDnet 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. 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. 17(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 2021 (April 1, 2021 - September 30, 2021) aresummarized as follows:
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Corporate
Accounting Standard No. 29, March 31, 2020), etc. effective from the beginning of the firstquarter ended June 30, 2021 in accordance with transitional treatment. The effect of this change
was to decrease net sales by ¥23,873 million and cost of sales by ¥23,873 million compared withthe previous accounting method. For more details, please refer to “2. Quarterly Consolidated
Financial Statements and (5) Notes on Quarterly Consolidated Financial Statements (Changes inaccounting policy).”(Unit: Millions of yen)
OperatingprofitNet sales

Ordinary profit

Profitattributable toowners ofparentSecond Quarter Fiscal 2021

132,660

11,665

11,998

9,257

Second Quarter Fiscal 2020

143,289

12,941

12,498

9,994

(7.4)

(9.9)

(4.0)

(7.4)

Rate of change (%)

Net sales
Sales rose owing to higher petrochemical product sales prices and solid sales ofsemiconductor-related products. Nevertheless, net sales decreased 7.4%, or ¥ 10,629 million
compared with the corresponding period of the previous year, to ¥ 132,660 million due to theapplication of Accounting Standard for Revenue Recognition, etc.
Cost of sales
Although raw material and fuel costs increased, cost of sales decreased 12.1%, or ¥ 11,912
million compared with the corresponding period of the previous year, to ¥ 86,865 million due tothe application of Accounting Standard for Revenue Recognition, etc.
SG&A expenses
SG&A expenses increased 8.1%, or ¥ 2,559 million compared with the corresponding period of
the previous year, to ¥ 34,130 million mainly due to increases in logistics costs and R&D
expenses.
2

Operating profit
Operating profit decreased 9.9 %, or ¥ 1,276 million compared with the corresponding period of
the previous consolidated fiscal year, to ¥ 11,665 million. Despite solid sales ofsemiconductor-related products, this decrease in operating profit was mainly due to higher raw
material and fuel costs.
Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥ 776 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, ordinary profit decreased 4.0 %, or ¥ 499 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 11,998 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved by ¥ 2,413 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, profit before income taxes increased 15.8%, or ¥ 1,913 million
compared with the corresponding period of the previous consolidated fiscal year, to ¥ 14,031
million.
Profit after deducting income taxes calculated in an appropriate way decreased 10.7%, or ¥ 1,110
million compared with the corresponding period of the previous consolidated fiscal year, to¥ 9,229 million.
Profit attributable to owners of parent decreased 7.4%, or ¥ 737 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 9,257 million.

3

(Operating results by segment)
Effective from the first quarter consolidated accounting period for the fiscal year ending March 31,
2022, the Company has reviewed our business segment and changed them to six segments:
Chemicals, Cement, Electronics Materials, Life Science, Eco Business and Others.
Data for the corresponding period of the previous fiscal year has been adjusted to reflect thischange to enable the year-on-year comparison presented as follows.
Sales(Unit: Millions of yen)
Reportable segment

SecondQuarter
Fiscal 2021
SecondQuarter
Fiscal 2020
Rate of change(%)

Figures inquarterly
Adjustment consolidated
profitstatement

Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

OthersTotal

43,891

24,96433,824

15,395

4,478

16,701

139,256(6,596)132,660

36,63042,11827,95012,815

4,134

36,069159,718 (16,429)

143,28919.8(40.7)

21.0

20.1

8.3

(53.7)

Operating profit (loss)(12.8)(7.4)(Unit: Millions of yen)
Reportable segment

Chemicals-

CementElectronic
Materials

Life
ScienceEcoBusiness

Others

Total

SecondQuarter
5,578
5
4,073
2,634
(354)
1,883
13,819Fiscal 2021
SecondQuarter
5,080
2,311
3,052
1,029
(332)
2,999
14,140Fiscal 2020
Rate of change
9.8(99.8)
33.5
155.9(37.2)(2.3)(%)(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

Figures inquarterly
Adjustment consolidated
profitstatement(2,154)

11,665(1,198)12,941-(9.9)

Chemicals
Caustic soda earnings declined. This downturn in earnings was due to manufacturing costs rising
as a result of higher raw material and fuel costs.
Earnings from vinyl chloride monomer increased due to the upturn in export prices.
Vinyl chloride resin earnings were in line with the corresponding period of the previous year.
While manufacturing costs rose as a result of higher raw material and fuel costs, unchanged
earnings reflected progress made in revising selling prices.
As a result of the above, segment net sales increased 19.8% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 43,891 million and operating profit increased
9.8 % to ¥ 5,578 million. The segment reported higher earnings on higher sales.
4Cement
Cement earnings decreased despite shipments being in line with the corresponding period of theprevious year. Lower earnings reflected manufacturing costs rising as a result of higher raw
material costs.
As a result of the above, segment net sales decreased 40.7% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 24,964 million and operating profit
decreased 99.8% to ¥ 5 million. The segment reported lower earnings on lower sales.
Electronic Materials
With regard to Semiconductor-grade polycrystalline silicon, earnings increased owing to firmsales on the back of the introduction of 5G and an increase in remote work.
IC Chemicals earnings decreased despite sales volumes increasing mainly overseas. This
downturn largely reflected higher raw material costs.
Fumed Silica earnings increased owing to higher sales volume centered on applications forsemiconductor abrasives.
Thermal management materials earnings were in line with the corresponding period of theprevious year. Although sales volume was solid, this largely reflected higher R&D expenses at theCenter for Commercialization of Advanced Technology.
As a result of the above, segment net sales increased 21.0% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 33,824 million and operating profit increased
33.5% to ¥ 4,073 million. The segment reported higher earnings on higher sales.
Life Science
Dental materials earnings grew thanks to a recovery in shipments to Europe and the UnitedStates, which had declined as a result of the spread of COVID-19.
Plastic lens-related materials earnings increased owing to a recovery in shipments to Europe andthe United States of eyeglass lens photochromic materials, which had declined as a result of the
spread of COVID-19.
Pharmaceutical ingredients and intermediates earnings increased, owing mainly to a robust sales
volume of generic pharmaceuticals.
Earnings of medical diagnostic systems decreased. This largely reflected a decline in sales
volumes of laboratory information systems and laboratory automation systems.
As a result of the above, segment net sales increased 20.1% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 15,395 million and operating profit increased
155.9% to ¥ 2,634 million. The segment reported higher earnings on higher sales.

5Eco BusinessTo make the environment segment one of our business pillars of the future, we consolidated theenvironment-related businesses scattered within the Group and newly established them as asegment that aims for new business development from the current fiscal year.
Segment net sales increased 8.3% compared with the corresponding period of the previous year,
to ¥ 4,478 million and operating loss amounted to ¥ 354 million (posted operating loss of ¥ 332
million in the corresponding period of the previous year).

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of September 30, 2021, total assets amounted to ¥ 396,866 million, an increase of ¥ 10,071
million compared with those as of March 31, 2021.
This increase primarily reflects the increase of property, plant and equipment, raw materials andsupplies, other current assets, merchandise and finished goods and work in process of ¥ 8,498
million, ¥ 6,945 million, ¥ 2,494 million, ¥ 1,915 million and ¥ 1,306 million respectively, despite
the decrease of cash and deposits and accounts receivable - trade of ¥ 7,865 million and ¥ 3,744
million respectively.
Total liabilities amounted to ¥ 183,095 million, up ¥ 1,561 million compared with those as ofMarch 31, 2021.
The principal factor is the increase in notes and accounts payable - trade and income taxes
payable of ¥ 7,777 million, despite decrease in long-term loans borrowings and current portionof long-term loans borrowings of ¥ 5,295 million and other current liabilities mainly due to adecrease in accounts payable of ¥ 1,782 million.
Net assets totaled ¥ 213,771 million, an increase of ¥ 8,510 million compared with those as ofMarch 31, 2021.
This mainly reflected the increase of ¥ 6,981 in retained earnings primarily due to posting profit
attributable, in spite of decrease due to the payment of dividends.

6

(Status of cash flows)
As of September 30, 2021, cash and cash equivalents were ¥ 75,205 million, a decrease of¥ 7,845 million compared with those as of March 31, 2021.
Net cash provided by operating activities totaled ¥ 16,359 million, a decrease of ¥ 4,342 million
compared with the corresponding period of the previous year.
This decrease primarily reflects the increase in inventories of ¥ 10,103 million despite positive
factors, such as profit before income taxes of ¥ 14,031 million, depreciation of ¥ 9,075 million
and increase in trade payables of ¥ 7,496 million
Net cash used in investing activities totaled ¥ 16,928 million, an increase of ¥ 5,691 million
compared with the corresponding period of the previous year.
Major contributory factor was payments for purchases of property, plant and equipment of¥ 16,204 million.
Net cash used in financing activities amounted to ¥ 8,209 million, a decrease of ¥ 807 million
compared with the corresponding period of the previous year.
This was primarily attributed to payments for repayment of long-term loans payable of ¥ 6,358
million and dividends paid of ¥ 2,516 million.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Based on the current raw material and fuel prices and other factors, the Company has revised theperformance forecast, announced on April 28, 2021. For further details, please see the Company’s
news release, “Notice concerning Revision of Performance Forecast for Fiscal 2021,” dated
October 28, 2021.
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)
9/30/2021

3/31/2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
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

83,68170,901－－
25
14,674
10,995
13,9305,666(115)
199,760

75,815－8,294
58,696
14
16,59012,301
20,8768,161(85)
200,666

105,028(76,427)
28,601
459,039(413,493)
45,54522,827(19,995)
2,831
31,9036,900(2,431)
4,469
10,674
124,025

107,147(77,520)
29,626
467,782(417,541)
50,241
22,959(20,135)
2,823
31,8707,994(2,814)
5,180
12,782
132,524

86
43
1,751
1,882

77
34
1,912
2,024

27,171
2,094
16,407
10,6604,854(61)
61,126
187,034
386,794

27,5801,989
16,38911,0354,702(44)61,652
196,200
396,866

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 share awards
Provision for repairs
Provision for decommissioning and removal
Provision for product warranties
Provision for loss on compensation for damage
Provision for environmental measures
Provision for loss on disaster
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 awards
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

3/31/2021(Millions of yen)
9/30/2021

39,547
1,850
8,899
1,204
2,375
3,057
33
4,884
1,100
95
122
40
17
20,07983,30847,325
1,050
23,261
1,170
4,662
3,135
－
3,833
1,392
51
111
14
－
18,297104,304

82,812
3,671
247
201
－
1,340
1,028
124
137
1,991
56
6,613
98,224
181,533

63,154
3,496
335
183
9
2,007
745
105
128
2,046
56
6,521
78,791
183,095

10,00023,455
157,332(349)
190,438

10,00023,455
164,313(412)
197,357

3,274
(19)
2,165
2,702
8,122
6,700
205,261
386,794

3,002
(58)
2,668
2,718
8,331
8,082
213,771
396,866

(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
Trial products income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Compensation for damage income
Gain on sales of patent right and other
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Loss on disaster
Loss on tax purpose reduction entry of non-current assets
Loss on disposal of non-current assets
Compensation for damage
Provision for decommissioning and removals
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

10

Q2 FY2020 YTD
143,289
98,77744,512(Millions of yen)
Q2 FY2021 YTD
132,660
86,86545,795

20,116
11,45331,57012,941

21,797
12,332
34,13011,665

48
264
493
93
1,288
2,188

70
289
534
346
2,016
3,256

794
1,836
2,631
12,498

704
2,218
2,923
11,998

38
4
－
－
1,477
197
1,717

313
1
75
2,178
－
－
2,568

－
826
99
－
228
－
862
83
2,098
12,117
1,776
10,340
346
9,994

35
3
77
67
279
70
－
2
536
14,031
4,801
9,229
(27)
9,257

(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

Q2 FY2020 YTD
10,340(Millions of yen)
Q2 FY2021 YTD
9,229

1,344
8
90
7

(266)
(39)
449
15

(95)

65

1,355
11,696224
9,454

11,334
362

9,470
(16)

(4) Consolidated Statements of Cash Flows
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities
Share of loss (profit) of entities accounted for using equity method
Subsidy income
Interest expenses
Loss on tax purpose reduction entry of non-current assets
Impairment losses
Loss (gain) on disposal of non-current assets
Gain on sales of patent right and other
Gain on liquidation of subsidiaries and associates
Compensation for damage income
Compensation for damage
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
Income taxes refund (paid)
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 sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Long-term loan advances
Proceeds from collection of long-term loans receivable
Subsidies received
Gain on sales of patent right and other
Other, net
Net cash provided by (used in) investing activities

12(Millions of yen)
Q2 FY2020 YTD Q2 FY2021 YTD
12,117
8,180
1,145
(214)
(325)
(313)
53
(38)
(4)
(493)
－
794
－
826
228
(1,477)
(197)
－
－
9,725
(1,052)(1,221)(3,383)(1,123)
138
23,365750(801)(2,611)
20,702

14,031
9,075
(63)
70
(366)
(359)
80
(278)
(1)
(534)
(75)
704
67
3
279
－
－
(2,178)70
3,669(10,103)
(808)
7,496
(2,256)(16)
18,508881(706)(2,323)
16,359(103)
200(11,491)
157
(241)
10
(27)
89
－
720
(550)
(11,237)(9)
26(16,204)
345
(384)
303
(1)
92
75
－
(1,170)(16,928)

Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
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
Increase/decrease in cash and cash equivalents due to changes in the accounting
period of consolidated subsidiaries
Cash and cash equivalents at end of period

13(Millions of yen)
Q2 FY2020 YTD Q2 FY2021 YTD(276)
75(6,175)821(2,429)
(122)
(0)
(909)
(9,016)39
487
80,918(1,200)1,184(6,358)1,514(2,516)
(120)
-99
(612)
(8,209)62(8,715)83,050－870

81,40675,205(5) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Major Changes in Shareholders’ Equity)
Not applicable.
(Changes in significant subsidiaries during this period)
Not applicable.
(Application of accounting methods specific to the preparation of the quarterly
consolidated financial statements)(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 consolidated
fiscal year under review including the second quarter consolidated accounting period for the
consolidated fiscal year ending March 31, 2022, and calculated the tax expense by multiplying theestimated effective tax rate to the profit/loss before income tax. However, if the application ofsaid estimated effective tax rate reduces the rationality of the calculation of tax expense, theCompany applies the effective statutory tax rate.

14

(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition)
The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Corporate
Accounting Standard No. 29, March 31, 2020) and other related standards from the first quarter
consolidated accounting period for the fiscal year ending March 31, 2022, and has decided torecognize revenue at the amount expected to be received in exchange for the promised goods orservices when control of the goods or services is transferred to the customer.
The main change due to the adoption of the Accounting Standard for Revenue Recognition is
the revenue recognition for agent transactions.
The application of the Accounting Standard for Revenue Recognition, etc. is subject to thetransitional treatment provided for in the proviso of Paragraph 84 of the Accounting Standard
for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the first quarter
ended June 30, 2021 was added to or subtracted from the beginning balance of retained earningsof the first quarter consolidated accounting period for the fiscal year ending March 31, 2022, andthus the new accounting policy was applied from the beginning balance; provided, however, thatthe new accounting policy was not retrospectively applied to contracts where recognitions ofnearly all the revenue amounts for periods prior to the beginning of the first quarter ended June30, 2021 were subject to the previous treatment, by applying the method provided for in
Paragraph 86 of the Accounting Standard for Revenue Recognition.
As a result, for the second quarter consolidated accounting period for the fiscal year ending
March 31, 2022, net sales decreased by ¥ 23,873 million and cost of sales decreased by ¥ 23,873
million. In addition, there was no impact on operating profit, ordinary profit, profit before
income taxes, and retained earnings at the beginning of the fiscal year ending March 31, 2022.
Due to the application of Accounting Standard for Revenue Recognition, “Notes and accounts
receivable – trade” which were included in “Current assets” in the consolidated balance sheets
for the previous fiscal year, are divided into “Notes receivable – trade” and “accounts receivable– trade” from the first quarter ended June 30, 2021. In accordance with transitional treatment
stipulated in Article 89-2 of the Accounting Standard for Revenue Recognition, figures for theprevious fiscal year have not been restated in accordance with the new approach to presentation.

15

(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ
Corporate Accounting Standard No. 30, July 4, 2019) from the beginning of the first quarter
ended June 30, 2021, and the new accounting policies set forth by the Accounting Standard for
Fair Value Measurement will be applied in the future in accordance with the transitional
treatment set forth in Paragraph 19 of the Accounting Standard for fair Value Measurement andParagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Corporate
Accounting Standard No. 10, July 4, 2019). There is no effect on quarterly consolidated
statements.

(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
the nonconsolidated 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
Effect Accounting 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), and the amounts of deferred tax assets and deferred tax liabilities are basedon the provisions of the tax laws before the revision.

16

(6) Segment information
Second Quarter Fiscal 2020 (April 1, 2020 –September 30, 2020)
1. Information on net sales as well as profit and loss by reportable segment(Millions of yen)

Reportable segments

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

Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others*1

Total

Figures inquarterly
Adjustment
consolidated*2
incomestatement*3

36,24841,89322,30812,3603,982

26,495

143,289-

143,289

381

224

5,641

455

151

9,574

16,429(16,429)-

36,6305,080

42,1182,311

27,950
3,052

12,815
1,029

4,134
(332)

36,0692,999

159,718
14,140(16,429)(1,198)143,289
12,941*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 (loss) 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 (loss), 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.

2. Information on impairment loss on fixed assets and goodwill by reported segment(Significant impairment loss on fixed assets)
An impairment loss on fixed assets in the amount of ¥745 million is recorded as extraordinary loss in the“Others” segment for the second quarter fiscal 2020.

17

Second Quarter Fiscal 2021 (April 1, 2021 –September 30, 2021)
1. Information on net sales as well as profit and loss by reportable segment and a breakdown of earnings(Millions of yen)

Reportable segments

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

Total

Figures inquarterly
Adjustment
consolidated*2
incomestatement*3

11,561

132,660-

132,660

104

5,139

6,596

(6,596)

-

4,478
(354)

16,701
1,883

139,256
13,819(6,596)(2,154)

132,660
11,665Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others*1

43,70324,56033,116

15,344

4,374

188

404

707

51

43,891
5,578

24,964
5

33,824
4,073

15,395
2,634*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 (loss) 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 (loss), 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.
*4 Net sales are not presented separately from earnings derived from contracts with customers and other earnings
because the amount of other earnings is insignificant.

2. Information on changes in reportable segments
Effective from the first quarter consolidated accounting period for the fiscal year ending March 31,
2022, the Company has reviewed our business segment and changed them to six segments:
Chemicals, Cement, Electronics Materials, Life Science, Eco Business and Others.
The segment information for the second quarter of the consolidated accounting period for the
fiscal year ending March 31, 2021 is disclosed based on the reporting segment classification after
this change.
The Company has applied the Accounting Standard for Revenue Recognition, etc. and changed
the method of accounting for revenue recognition from the beginning of the first quarter ended
June 30, 2021 as described in above “Changes in accounting policy.” Therefore, the Company has
similarly changed the measuring method of segment profit or loss.
As a result of this change, net sales in the Chemicals, Cement, Electronics Materials, Eco Businessand Others segments decreased by ¥ 683 million, ¥ 21,961 million, ¥ 51 million, ¥ 363 millionand ¥ 10,836 million, respectively, compared with the previous method for the second quarter
consolidated accounting period for the fiscal year ending March 31, 2022.
The total decrease in net sales after taking into account intersegment eliminations and corporate
expenses is ¥ 23,873 million.
There is no effect on segment profit (loss).
3.Information on amortization of goodwill and unamortized balance by reportable segment
Not applicable.

18