Disclaimer: This document has been translated from the financial section of the JapaneseAnnual Securities Report for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Annual Securities Report（Financial Section）

The 157th Fiscal Term (April 1, 2020 to March 31, 2021)

Tokuyama Corporation

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

1. Consolidated financial statements etc.
(1) Consolidated financial statements(i) Consolidated balance sheets(Millions of yen)
As of March 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

As of March 31, 2021

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

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

203,849

199,760*2, *3 108,636*2, *3 105,028(78,109)(76,427)

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

30,52628,601*2, *3 465,761*2, *3 459,039(420,631)(413,493)

45,12945,545*3 22,488*3 22,827(20,024)(19,995)

2,463

2,831

*2 33,363*2 31,903

5,011(2,370)6,900(2,431)

2,641

4,469

9,067

10,674

123,192

124,025

3
59*3 1,59486
43*3 1,751

1,657

1,882

*1, *2 19,385*1, *2 27,171

2,302
19,164
9,569
4,382
(56)

2,094
16,407
10,660*1 4,854(61)

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―1―

54,747

61,126

179,597

187,034

383,447

386,794

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Millions of yen)
As of March 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 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

As of March 31, 2021

42,79539,547*2 3,082*2 1,850*2 16,106*2 8,899

870
2,896
3,175

－
－
*2 20,545

1,204
2,375
3,057
33
4,884
1,100
95
122
40
17
*2 20,079

95,241

83,308*2 94,255*2 82,812

2,028
204

3,671
247

239

201

86
944
529

－
1,340
1,028

158

124

196
2,277
6
6,848

137
1,991
56
6,613

107,775

98,224

Total liabilities

203,017

181,533

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

10,00020,018
137,665(1,809)10,00023,455
157,332(349)

165,874

190,438

332

3,274

(35)
703
1,986

(19)
2,165
2,702

－
5,159
439
84
84

Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors (andother 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 shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans

2,986

8,122

Non-controlling interests

Total accumulated other comprehensive income

11,5686,700

Total net assets

180,429205,261

383,447

386,794

Total liabilities and net assets―2―

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(ii) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2020
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
methodOutsourcing service income
Rental income from non-current assets
Equipment sale income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Provision for decommissioning and removals
Fiduciary obligation expenses
Equipment cost of sales
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on bargain purchase
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Subsidy income
Gain on insurance claims
Gain on sales of patent right and other
Gain on liquidation of subsidiaries and associates
Gain on step acquisitions
Other
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
assetsLoss on disposal of non-current assets
Loss on sale of investment securities
Provision for decommissioning and removals
Loss on valuation of investment securities
Other
Total extraordinary loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―3―

Fiscal year ended
March 31, 2021

316,096

302,407*1, *4 217,446*1, *4 207,254

98,65095,152*2 42,265*2 40,510*3, *4 22,104*3, *4 23,719

64,36934,281

64,23030,921

145
352

94
395

756

949

650
531
－
1,669
4,105

651
587
575
1,917
5,172

1,689
985
676
－
2,198
5,549
32,837

1,524
750
584
562
1,875
5,297
30,796

*5 23

*5 98

157
8
－
144
470
－
－
56
－
861

－
77
746
155
203
1,478
197
125
96
3,180

*6 19

*6 2

*7 34

*7 825

82

243

191

3

685
1
－
4,531
234
5,781
27,917
4,898
2,026
6,924
20,992
1,055
19,937

830
－
817
－
293
3,017
30,959
4,336
1,302
5,639
25,320785
24,534

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

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

20,992

25,320

1,921
25
(891)
(654)

2,968
16
1,480
694

(100)

43

*1 300*1 5,203

Comprehensive income

21,29330,524Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

20,237

29,670

1,055

853

―4―

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(iii) Consolidated statements of changes in equity
Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders' equity

Balance as of April 1,
2019

Share capital

Capital surplus

10,00020,018Retainedearnings
121,901

Treasury shares

Total
shareholders’equity(1,823)150,095

Changes during period
Profit attributable toowners of parent

19,937

19,937

Dividends of surplus(4,173)(4,173)Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance as of March 31,
2020

(0)

(5)

(5)

20

20

－

(0)

15,76414

15,77910,00020,018

137,665(1,809)165,874

Accumulated other comprehensive income
Total
Valuation
Deferred gains Foreign currency Remeasurements accumulated Non-controlling Total net assets
difference oninterests
or losses
translationof defined benefit
otheravailable-for-saleon hedges
adjustment
planscomprehensive
securities
incomeBalance as of April 1,
2019(1,566)

(61)

1,672

2,640

2,685

10,743

163,525

Changes during period
Profit attributable toowners of parent

19,937

Dividends of surplus(4,173)Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders'equityTotal changes during
periodBalance as of March 31,
2020

(5)
20
1,898

25

(969)

(654)

300

825

1,125

1,898

25

(969)

(654)

300

825

16,904

332

(35)

703

1,986

2,986

11,568

180,429―5―

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

Fiscal year ended March 31, 2021
(Millions of yen)
Shareholders' equity

Balance as of April 1,
2020

Share capital

Capital surplus

10,00020,018Retainedearnings
137,665

Treasury shares

Total
shareholders’equity(1,809)165,874

Changes during period
Profit attributable toowners of parent

24,53424,534

Dividends of surplus(4,868)(4,868)Purchase of treasury
shares
Disposal of treasury
sharesChange due to shareexchanges
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equityTotal changes during
periodBalance as of March 31,
2021

(42)

(42)

(0)

7

7

4,399

1,494

5,894

(961)

(961)

－

3,437

19,666

1,460

24,563

10,00023,455

157,332(349)

190,438

Accumulated other comprehensive income
Total
Valuation
Deferred gains Foreign currency Remeasurements accumulated Non-controlling Total net assets
difference oninterests
or losses
translationof defined benefit
otheravailable-for-saleon hedges
adjustment
planscomprehensive
securities
incomeBalance as of April 1,
2020

332

(35)

703

1,986

2,986

11,568

180,429

Changes during period
Profit attributable toowners of parent

24,534

Dividends of surplus(4,868)Purchase of treasury
shares
Disposal of treasury
sharesChange due to shareexchanges
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other than shareholders'equityTotal changes during
periodBalance as of March 31,
2021

(42)
7
5,894

(961)

2,942

16

1,461

715

5,136

(4,868)

267

2,942

16

1,461

715

5,136

(4,868)24,831

3,274

(19)

2,165

2,702

8,122

6,700

205,261―6―

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(iv) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2020
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
Loss (gain) on sale of shares of subsidiaries andassociates
Share of loss (profit) of entities accounted for using
equity method
Gain on bargain purchase
Subsidy income
Interest expenses
Loss on tax purpose reduction entry of non-current
assetsImpairment losses
Loss (gain) on disposal of non-current assets
Gain on insurance claims
Gain on sales of patent right and other
Gain on liquidation of subsidiaries and associates
Loss (gain) on step acquisitions
Loss (gain) on valuation of investment securities
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

Fiscal year ended
March 31, 2021
27,917
16,122
2,118
129
(709)
(497)
321
(4)
(6)

30,95917,003
1,795
(129)
(69)
(490)
10
(96)
(77)

－

(746)

(756)

(949)

(157)
(144)
1,689

－
(155)
1,524

191

3

34
685
(470)

825
830
(203)
(1,478)
(197)
(125)

－
－
(56)
4,531
7,343
(1,268)(323)(4,385)752(74)－(2,124)
2,283
(914)
(533)
1,190
319

Subtotal

52,981

48,454

Interest and dividends received
Interest paid
Proceeds from insurance income
Compensation for damage received

1,041(1,709)
470
5,865

915
(1,530)257

Compensation for damage paid
Income taxes refund (paid)(832)(5,451)－(31)(4,750)Net cash provided by (used in) operating activities

52,36443,314―7―

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Millions of yen)
Fiscal year ended
March 31, 2020
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 in scope of consolidation
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Long-term loan advances
Collection of long-term loans receivable
Subsidies received
Gain on sales of patent right and other
Other, net

Fiscal year ended
March 31, 2021

(52)
174
(19,706)
68
(24)
21

(106)
240
(23,800)
1,108
(251)
133

137

－

(110)

－

－

3,356

(5)
181
144
－
(1,376)

(29)
180
155
1,489
(1,752)(20,548)(19,276)(1,403)
1,092(12,739)－(4,164)
(276)
(0)
(856)

(1,490)187(15,857)
1,303(4,861)(239)(40)(1,531)

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(18,348)(22,530)

(540)

623

12,926

2,131

Cash and cash equivalents at beginning of period

67,99180,918*1 80,918*1 83,050

Net cash provided by (used in) investing activities
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

Cash and cash equivalents at end of period―8―ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

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Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Matters that Serve as the Basis for Preparing Consolidated Financial Statements)
1. Scope of consolidation(1) The number of consolidated subsidiaries: 52
Formosa Tokuyama Advanced Chemicals Co., Ltd., which the Company newly established, has been included in the scope of
consolidation from the consolidated fiscal year under review.
Tianjin Tokuyama Plastics Co., Ltd., which had been a consolidated subsidiary until the previous consolidated fiscal year, wasliquidated, and has been excluded from the scope of consolidation from the consolidated fiscal year under review.
Tokuyama Logistics Co., Ltd., which had been a consolidated subsidiary until the previous consolidated fiscal year, was absorbed
in an absorption-type merger in which the Company’s consolidated subsidiary TOKUYAMA KAIRIKU UNSO K.K. was thesurviving entity, and has been excluded from the scope of consolidation from the consolidated fiscal year under review.
Sun・Tox Co., Ltd., which had been a consolidated subsidiary until the previous consolidated fiscal year, has been excluded fromthe scope of consolidation from the consolidated fiscal year under review because the Company sold part of its stake in Sun・Tox.
2. Application of equity method(1) The number of associates accounted for using the equity method: 11
Sun・Tox Co., Ltd., which had been a consolidated subsidiary until the previous consolidated fiscal year, has been excluded fromthe scope of consolidation from the consolidated fiscal year under review and included in the scope of application of the equity
method.
(2) Major affiliates that are not accounted for by the equity method are Oita Mining Co., Ltd. and others because they have little
impact on the consolidated financial statements in terms of profit/loss (corresponding to equity interest), retained earnings(corresponding to equity interest), etc. when they are excluded from the scope of application of the equity method, nor have any
material impact on an aggregate basis.
(3) Of equity method affiliates, with regard to the company of which the last date of its fiscal year is different from the consolidated
fiscal year-end, the financial statements of its fiscal year are used in the preparation of consolidated financial statements.
3. Business year, etc. of consolidated subsidiaries
Of consolidated subsidiaries, A&T Corporation closes its accounts on December 31. Its financial statements as of December 31 areused in the preparation of consolidated financial statements, and adjustments necessary for consolidation purposes are made tomaterial transactions arising between that date and the consolidated fiscal year-end.
Of consolidated subsidiaries, Tokuyama Chemicals (Zhejiang) Co., Ltd. and other four companies whose original fiscal year-end is
December 31, are consolidated by performing provisional settlement of accounts on March 31, the consolidated fiscal year-end, incompliance with the regular settlement of accounts.

―9―

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4. Significant accounting policies(1) Valuation basis and valuation methods for significant assets(i) Securitiesi) Bonds held to maturity
Stated at cost by the amortized cost method.
ii) Available-for-sale securities
Securities with fair value
Stated at the fair value based on the quoted market price as of the fiscal year-end (Valuation differences are recognizedin net assets; the cost of securities sold is calculated by the moving-average method).
Securities without fair value
Stated at cost by the moving-average method.
(ii) Derivatives
Derivatives are stated at fair value.
(iii) Inventories
Inventories held for sale in the ordinary course of businessStated at cost mainly by the moving-average method. (The balance sheet value of the inventories is calculated by writedown based on the decreased profitability.)(2) Depreciation and amortization methods of significant depreciable and amortizable assets(i) Property, plant and equipment (excluding leased assets)
Buildings and structures acquired on or after April 1, 2016: Depreciated mainly by the straight-line method.
Other than the above: Depreciated mainly by the declining-balance method.
The estimated useful lives of major items are as follows:
Buildings and structures: 2 to 75 years
Machinery, equipment and vehicles: 2 to 20 years(ii) Intangible assets (excluding leased assets)
Amortized mainly by the straight-line method.
Internal use software is amortized by the straight-line method over the internally expected useful life (5 years).
(iii) Leased assets
Leased assets in finance lease transactions that transfer ownership
The Company uses the same depreciation method that is applied to owned fixed assets.
Leased assets in finance lease transactions that do not transfer ownership
Depreciated by the straight-line method based on the assumption that the useful life is equal to the lease term and theresidual value is equal to zero.
(3) Significant allowances and provisions(i) Allowance for doubtful accounts
To cover possible bad debt expenses on trade receivables, loans receivable and others, the allowance for doubtful accounts isprovided at the estimated uncollectable amounts based on the historical default rate for normal receivables, or taking into
account collectability on a case-by-case basis for certain receivables such as doubtful receivables with higher possibility ofdefault.
(ii) Provision for bonuses
To prepare for the payment of next bonuses to employees, provision for bonuses is recorded based on the portion of theestimated amount of bonus payments attributable to the consolidated fiscal year under review.
(iii) Provision for share awards
The Company records estimated amounts for share benefit obligations at the end of the consolidated fiscal year under review
in order to prepare for the Company share benefits provided to directors and other executives based on the Company’s shareissuance rules.

―10―

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04(iv) Provision for repairs
Repair expenses are calculated individually and recorded to prepare for periodic repairs of manufacturing facilities.
(v) Provision for decommissioning and removal
Decommissioning and removal expenses are calculated individually and recorded to prepare for decommissioning andremoval of manufacturing facilities.
(vi) Provision for product warranties
For required expenses incurred during the warranty period with free servicing (warranty expenses for free servicing) for
laboratory information systems and laboratory automation systems, the estimated amount of expenses is recorded based on
the historical rate of incurrence (proportion of expenses paid to net sales).
(vii) Provision for loss on compensation for damage
The Company records provisions based on reasonably estimated monetary amounts at the end of the consolidated fiscal year
under review for loss on compensation for damages caused by customer delivery delays.
(viii) Provision for environmental measures
The Company records provisions based on estimated amounts at the end of the consolidated fiscal year under review toprepare for payments for environmental measures.
(ix) Provision for loss on disaster
The Company records provisions based on reasonably estimated monetary amounts at the end of the consolidated fiscal year
under review to prepare for payments for restoration, etc. of assets damaged in disasters.
(x) Provision for retirement benefits for directors (and other officers)
At certain consolidated subsidiaries, the amount to be required at the end of the consolidated fiscal year under review inaccordance with internal rules is recorded to prepare for payment of directors’ retirement benefits.
(xi) Allowance for loss on compensation for building materials
The estimated amount of losses incurred in replacement, renovation, etc. is recorded to prepare for repairs and maintenanceof plastic sashes for houses and buildings (fire protection and resistance grade).
(4) Accounting method of retirement benefits(i) Method of attributing estimated retirement benefits to accounting periods
When calculating retirement benefit obligations, the benefit formula basis is used to attribute estimated retirement benefits tothe period through the end of the consolidated fiscal year under review.
(ii) Amortization of actuarial differences
Actuarial differences are amortized by using the straight-line method over a period of time within the average remaining
service period of employees (14 years) from the subsequent consolidated fiscal year when they are incurred.
(iii) Application of simplified accounting method used by small companies
In calculating retirement benefit liability and retirement benefit expenses, some of the consolidated subsidiaries apply asimplified accounting method in which an assumed amount of benefits to be paid for voluntary base retirement at theconsolidated fiscal year-end is deemed as retirement benefit obligations.
(5) Application of the consolidated taxation system
The Company applies the consolidated taxation system.
(6) 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 thetransition 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), and the―11―

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amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the tax laws before the revision.
(7) Accounting method for deferred assets
All deferred assets are charged to expenses when incurred.
(8) Translation of significant assets or liabilities denominated in foreign currencies into Japanese yen
Monetary assets and liabilities denominated in foreign currencies are translated into yen at the exchange rate in effect at theconsolidated balance sheet date and the resulting exchange gains or losses are credited or charged to income as incurred.
Assets and liabilities of overseas subsidiaries and the like are translated into yen at the exchange rate in effect at the consolidatedbalance sheet date, while their revenues and expenses are translated into yen at the average rates of exchange prevailing during
the year. The resulting translation adjustments are included in “Foreign currency translation adjustment” and “Non-controllinginterests” in net assets.
(9) Method of significant hedge accounting(i) Method of hedge accounting
For the method of hedge accounting, in general, the deferral hedge accounting is applied. Among hedging instruments,
forward exchange contracts that fulfill the requirement for allocation method are subjected to the allocation method. Interest
rate swaps that fulfill the requirement for special treatment are subjected to the special treatment.
(ii) Hedging instruments and hedged items
Hedging instruments and hedged items to which hedge accounting has been applied in the fiscal year under review are as
follows:
Hedging instruments: Forward exchange contracts, interest rate swaps
Hedged items: Forecast transactions in foreign currencies, accounts receivable and payable, and borrowings denominated inforeign currencies(iii) Hedging policy
Foreign exchange risk and interest rate risk of hedged items are hedged within a certain range.
(iv) Method of assessing hedge effectivenessHedge effectiveness is assessed by comparing cumulative changes in cash flows or market fluctuations of hedged items andcumulative changes in cash flows or market fluctuations of hedging instruments on a quarterly basis and based on changes inboth, etc. For interest rate swaps to which the special treatment is applied, assessment of hedge effectiveness is omitted.
(10) Amortization method and amortization period of goodwill
Goodwill is equally amortized over five years.
(11) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows consist of cash on hand, at-call deposits with banks andshort-term investments that have maturities within three months from acquisition, are readily convertible to cash and are
subject to an insignificant risk of changes in value.
(12) Other significant matters forming the basis of preparing the consolidated financial statements
Accounting for consumption taxes
Consumption tax and local consumption tax are accounted for using the tax-excluded method. Non-deductible consumption tax
and local consumption tax are accounted for as expenses for the consolidated fiscal year under review.

―12―

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04(Significant Accounting Estimates)
1. Recoverability of deferred tax assets(1) Deferred tax assets recorded in the consolidated financial statements for the fiscal year under review
Deferred tax assets: 16,407 million yen(2) Information on significant accounting estimates for identified items
The recoverability of deferred tax assets is determined by assessing if deductible temporary differences and tax loss
carryforwards have an effect of reducing the amounts of future tax payments. In the assessment, the Company considers if
sufficient taxable profit before adjustments of temporary differences will be available based on the Company’s profitability, if
sufficient taxable profit before adjustments of temporary differences will be available based on the Company’s tax planning or if
sufficient taxable temporary differences will be available in the future.
In assessing the availability of sufficient taxable profit before adjustments of temporary differences based on the Company’s
profitability, the Company estimates taxable profit for the fiscal year in which temporary differences are expected to reverse, as
well as for carryback and carryforward periods. Taxable profit before adjustments of temporary differences is estimated basedon the Company’s future business plan, which includes material assumptions such as: revenue projections based on estimateddemand for the Company’s products and planned new product launches in the Company’s growth businesses in the areas ofelectronics, health and the environment; market trends for coal, the Company’s major raw material and fuel; and capital
investment in the Company’s growth businesses.
If it becomes necessary to revise these estimates and assumptions due to changes in the actual timings of events and realized
values from estimates as a result of changes in the status of the Company’s business and unforeseeable economic conditions,such as issuance of government policy measures for decarbonization, fluctuations in the price of coal, the Company’s major raw
material and fuel, etc., it can have a material effect on the amounts of deferred tax assets and deferred income taxes recognizedin the Company’s consolidated financial statements for subsequent fiscal years. In addition, if the effective tax rate is changed
due to tax reforms, it can have a material effect on the amounts of deferred tax assets and deferred income taxes recognized in
the Company’s consolidated financial statements for subsequent fiscal years.
(Changes in Accounting Policy)
Not applicable.

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更新日時:2021/06/28 13:15:04(New Accounting Standards Not Yet Applied)・ “Accounting Standard for Revenue Recognition,” (ASBJ Corporate Accounting Standard No. 29, March 31, 2020)
・ “Implementation Guidance on Accounting Standard for Revenue Recognition,” (ASBJ Corporate Accounting Standard
Implementation Guidance No. 30, March 26, 2021)(1) Summary
This is a comprehensive accounting standard for revenue recognition. Revenue is recognized applying the following five steps.
1. Identify the contracts with customers.
2. Identify the performance obligations in the contracts.
3. Determine the transaction prices.
4. Allocate the transaction prices to the performance obligations in the contracts.
5. Recognize revenue when or as performance obligations are satisfied.
(2) Planned date for implementation
The Company will implement these accounting standards from the beginning of the fiscal year ending March 2022.
(3) Impact of implementing said accounting standards
The impact of implementing the “Accounting Standard for Revenue Recognition” to the consolidated financial statements isbeing evaluated at this time.
• Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019)• Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, July 4, 2019)• Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9, July 4, 2019)• Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019)• Implementation Guidance on Disclosures about Fair Value of Financial Instruments (ASBJ Guidance No. 19, March 31, 2020).
(1) Summary
To improve comparability with international accounting standards, Accounting Standard for Fair Value Measurement and
Implementation Guidance on Accounting Standard for Fair Value Measurement (hereinafter referred to as AccountingStandards for Fair Value Measurement) were developed and guidance on how to calculate fair value was prescribed.
Accounting Standards for Fair Value Measurement is applied to the fair value of the following items.
• Financial instruments in Accounting Standard for Financial Instruments• Inventories held for trading purposes in Accounting Standard for Measurement of Inventories
Additionally, Implementation Guidance on Disclosures about Fair Value of Financial Instruments was also revised andexplanatory notes have been established such as the breakdown of the fair value of financial instruments at each level.
(2) Planned date for implementation
The Company will implement this accounting standard from the beginning of the consolidated fiscal year ending March 31,
2022.
(3) Impact of implementing said accounting standard
The amount of the impact of implementing Accounting Standards for Fair Value Measurement, etc. is being evaluated at the timeof preparation of the consolidated financial statements.

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更新日時:2021/06/28 13:15:04(Changes in Presentation)(Application of the Accounting Standard for Disclosure of Accounting Estimates)
The Company has applied the Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No. 31, March 31,2020) from its consolidated financial statements pertaining to the end of the consolidated fiscal year under review, providing noteson significant accounting estimates in the consolidated financial statements.
The notes, however, do not describe accounting estimates for the previous consolidated fiscal year, pursuant to transitional
procedures stipulated in the proviso of Item 11 of the accounting standard.

(Changes in Accounting Estimates)
Not applicable.
(Additional Information)(Performance-based stock remuneration program)
On September 3, 2018, the Company introduced a performance-based stock remuneration program geared for its directors(excluding directors who are Audit and Supervisory Committee members, non-executive directors, external directors and persons
not resident in Japan) and executive officers (excluding persons not resident in Japan).
1. Transaction summary
For this program, the Company adopted a Director Remuneration BIP (Board Incentive Plan) Trust (hereinafter referred to as“the BIP Trust”). As with performance-linked stock (performance share) remuneration and transfer-limited stock (restricted
stock) remuneration in the United States and Europe, the BIP Trust is a program that grants the Company’s shares and benefits
as well as the equivalent amount of convertible bonds of the Company’s shares in accordance with business performance andthe director’s position.
2. Company’s own shares that remains in trust
The Company’s shares that remains in trust is recorded as treasury shares in the net assets section based on the carrying amount(excluding the amount of incidental expenses) of the trust. The book value and number of shares of treasury shares are ¥320
million and 94 thousand shares for the previous consolidated fiscal year and ¥312 million and 92 thousand shares for the
consolidated fiscal year under review.

―15―

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04(Consolidated Balance Sheets)*1 Items corresponding to unconsolidated subsidiaries and affiliates are as follows:
As of March 31, 2020
Investment securities

8,222 million yen

Investments and other assets - other－

As of March 31, 2021
11,837

million yen

553*2 Assets pledged as collateral and liabilities for which collateral is pledged
Assets pledged as collateral are as follows:
As of March 31, 2020
Buildings and structures

64 million yen

Machinery, equipment and vehicles

As of March 31, 2021
60

million yen

1,684

1,372

562

188

Investment securities

1,124

1,128

Total

3,436

2,749

As of March 31, 2020

As of March 31, 2021

Land

Liabilities for which collateral is pledged are as follows:

Short-term borrowings
Current portion of long-termborrowings
Long-term borrowings
Other
Total

133 million yen

161 million yen

47

257

1,754

1,288

18

16

1,954

1,723

*3 Reduction entry
In the consolidated fiscal year under review, reduction entries of ¥1 million for buildings and structures and ¥2 million fortools, furniture and fixtures were made due to receipt of subsidies, etc.
In addition, as a result of the retirement of machinery, equipment and vehicles that were subject to reduction entry, cumulative
reduction entries decreased by ¥96 million, and as a result of the retirement of tools, furniture and fixtures that were subject toreduction entry, cumulative reduction entries decreased by ¥31 million.
The cumulative reduction entries due to the receipt of subsidies, etc. in association with fixed assets are as follows:
As of March 31, 2020

As of March 31, 2021

Buildings and structures

1,538 million yen

1,540

Machinery, equipment and vehicles

2,710

2,614

163

133

4

4

4,417

4,292

Tools, furniture and fixtures
Intangible assets - other
Total

―16―

million yen

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

4

Guarantee obligation
The Company provides guarantee of obligations concerning loans from financial institutions by the employee.
Loan guarantees
As of March 31, 2020
Employees
Chuyo Ready-mixed
Concrete Cooperative
Association
Kasuga Kawauchi Kyodo
Ready Mixed Concrete Co.,
Ltd.
Total

5

As of March 31, 2021
104 million yen

Employees
Chuyo Ready-mixed
Concrete Cooperative
Association
Kasuga Kawauchi Kyodo
Ready Mixed Concrete Co.,
Ltd.

50
11

103 million yen
35
18

166

157

Contingent liabilities pertaining to unsecured bond debt assumption agreements
With regard to the following unsecured bonds, the Company will be delegating the performance of the obligation based on an
unsecured bond trust-type debt assumption agreement that has been executed with a bank. Accordingly, although the liabilities
pertaining to those unsecured bonds and the amount paid under that same contract offset each other, the obligation to redeem
the Company’s unsecured bonds to bondholders continue until the time of their redemption.
As of March 31, 2020
22nd unsecured bonds without
collateral
24th unsecured bonds without
collateral
Total

6

15,000 million yen－ million yen

9,400

9,400

24,4009,400

Repurchase obligation due to liquidation of notes receivable
As of March 31, 2020
Repurchase obligation due toliquidation of notes receivable

7

As of March 31, 2021

1,481 million yen

As of March 31, 2021
1,323

million yen

Notes receivable endorsed
As of March 31, 2020
Notes receivable endorsed

511 million yen―17―

As of March 31, 2021
453 million yen

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Consolidated Statements of Income)*1 Inventories at the consolidated fiscal year-end represent the amount after the book value was reduced in connection with adecline in the profitability, and the following losses on valuation of inventories (the amount in parentheses represents gains onreversal) are included in cost of sales.

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

(176) million yen(100) million yen*2 Major items and amounts of selling expenses are as follows:

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Freight-out expenses

23,491 million yen

22,763 million yen

Shipping charges

5,973

5,919

Payroll and allowances

5,026

5,152

Provision for bonuses

451

428

Retirement benefit expenses

96

169

Provision for repairs
Provision of allowance for doubtful
accounts

146

50

(12)

0

*3 Major items and amounts of general and administrative expenses are as follows:

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Technical research expenses

8,013 million yen

9,549 million yen

Payroll and allowances

4,629

4,592

Provision for bonuses

408

438

Retirement benefit expenses
79
176
Provision for retirement benefits for
49
56
directors (and other officers)(Note) Technical research expenses for the previous consolidated fiscal year include provision for bonuses of ¥363 million
and retirement benefit expenses of ¥30 million.
Technical research expenses for the consolidated fiscal year under review include provision for bonuses of ¥417
million and retirement benefit expenses of ¥144 million.
*4 Total amount of research and development expenses included in general and administrative expenses and production cost

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

9,193 million yen

10,853 million yen―18―

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04*5 The breakdown of gain on sale of non-current assets is as follows:

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Buildings and structures－ million yen

9 million yen

Machinery, equipment and vehicles

16

63

Tools, furniture and fixtures

1

1

5

24

23

98

Land
Total

*6 The breakdown of loss on sale of non-current assets is as follows:

Fiscal year ended March 31, 2020
Buildings and structures0

million yen

Fiscal year ended March 31, 2021
0 million yen

Machinery, equipment and vehicles

40Tools, furniture and fixtures

0

0

Land

13

1

19

2

Total
*7 Impairment losses
Fiscal year ended March 31, 2020

The Group groups its assets mainly according to the smallest units independently generating cash flows based on businesscategories. Based on this grouping, impairment losses were recorded for the consolidated fiscal year ended March 31, 2020.
The description of content has been omitted due to the low level of importance.
Fiscal year ended March 31, 2021
The Group groups its assets mainly according to the smallest units independently generating cash flows based on businesscategories. Based on this grouping, impairment losses were recorded for the consolidated fiscal year ended March 31, 2021.
The description of the impairment losses, except for the following, is omitted due to the low level of importance.
Impairment loss
Use
Location
Type(Millions of yen)
Leased assets

Itako, Ibaraki Prefecture, Japan

Land

Total

745
745

As there was a significant difference between the recoverable amount and the carrying amount of the above leased assets as aresult of comparing the two amounts following the Company’s decision to sell the assets and conclusion of a sale and purchaseagreement, the Company reduced the carrying amount of the assets to the recoverable amount and recorded the amount of
reduction as impairment loss in extraordinary losses.
The recoverable amount is measured at net sales value of the assets based on the sale and purchase agreement.

―19―

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Consolidated Statements of Comprehensive Income)*1

Reclassification adjustments and tax effects relating to other comprehensive income

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

(2,475) million yen

4,080 million yen

4,525

(77)

2,049

4,003

(127)

(1,034)

1,921

2,968

36

23

Amount before income tax effect36

23

Income tax effect

(11)

(7)

Total deferred gains or losses on hedges

25

16

(891)

1,678

－

(197)

(891)

1,480

(553)

943

(383)

48

Valuation difference on available-for-salesecurities:
Gains arising during the year
Reclassification adjustment to profit orloss
Amount before income tax effect
Income tax effectTotal valuation difference on availablefor-sale securities
Deferred gains or losses on hedges:
Gains arising during the year

Foreign currency translation adjustment:
Gains arising during the year
Reclassification adjustment to profit orloss
Total foreign currency translation
adjustment
Remeasurements of defined benefit plans,
net of tax:
Gains arising during the year
Reclassification adjustment to profit orloss
Amount before income tax effect
Income tax effectTotal remeasurements of defined
benefit plans, net of tax
Share of other comprehensive income ofentities accounted for using equity method:
Gains arising during the year
Reclassification adjustment to profit orloss
Total share of other comprehensive
income of entities accounted for using
equity method
Total other comprehensive income

―20―

(937)

992

282

(298)

(654)

694

(100)

42

－

0

(100)

43

300

5,203

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Consolidated Statements of Changes in Equity)
Fiscal year ended March 31, 2020
1. Class and total number of shares issued and class and number of treasury shares
Beginning of year
(Thousands of shares)

Increase during the fiscal Decrease during theyear
fiscal year
(Thousands of shares)(Thousands of shares)

End of year
(Thousands of shares)

Issued shares
Common shares

69,934－－

69,934

Total

69,934－－

69,934

Common shares(Notes 1, 2, 3)

482

2

6

478

Total

482

2

6

478

Treasury shares(Note 1)
(Note 2)

(Note 3)

2.

The increase in the number of treasury shares of common shares is due to an increase of 2 thousand shares due topurchase of less than a share-trading unit.
The decrease of 6 thousand shares in the number of treasury shares of common shares is a decrease due to the request for
additional purchase of 0 thousand shares constituting less than one share unit and the sale of a portion of the Company’s
shares totaling 6 thousand shares held by Director Remuneration BIP (Board Incentive Plan) Trust.
Included in the aforementioned treasury shares of common shares is 94 thousand shares held by The Master Trust Bankof Japan, Ltd. (executive compensation BIP trust account; 76,292 accounts).

Dividends(1) Dividend amount paid

Resolution

Class of shares

Dividend
Dividend per share(Millions of yen)
(yen)

Reference date

Effective date

Source ofdividends

Ordinary General
Meeting ofCommonRetained
1,738
25.00 March 31, 2019
June 24, 2019
Shareholders
sharesearnings(June 21, 2019)
Board ofDirectors
CommonSeptember 30,
Retained
2,434
35.00
December 2, 2019
Meeting
shares2019
earnings(October 31,
2019)(Note) Included in the total amount of dividends decided by the Ordinary General Meeting of Shareholders on June 21, 2019 is ¥2
million worth of dividends related to 100 thousand Company shares (treasury shares) held in the executive compensation
BIP trust account.
Included in the total amount of dividends decided by the Board of Directors Meeting on October 31, 2019 is ¥3 million
worth of dividends related to 94 thousand Company shares (treasury shares) held in the executive compensation BIP trust
account.
(2) Dividends whose record date is within the consolidated fiscal year and whose effective date is in the following consolidated
fiscal year

Resolution

Class ofsharesDividend(Millions of yen)

Dividend per
share
(yen)

Reference date

Effective date

Source ofdividends

Ordinary General
Meeting ofCommonRetained
2,434
35.00
March 31, 2020
June 25, 2020
Shareholders
sharesearnings(June 24, 2020)(Note) Included in the total amount of dividends decided by the Ordinary General Meeting of Shareholders on June 24, 2020 is ¥3
million worth of dividends related to 94 thousand Company shares (treasury shares) held in the executive compensation BIP
trust account.

―21―

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

Fiscal year ended March 31, 2021
1.

Class and total number of shares issued and class and number of treasury shares
Beginning of year
(Thousands of shares)

Increase during the fiscal Decrease during theyear
fiscal year
(Thousands of shares)(Thousands of shares)

End of year
(Thousands of shares)

Issued shares
Common shares(Note 1)

69,934

2,153－

72,088

Total

69,934

2,153－

72,088

Common shares(Notes 2, 3, 4)

478

16

392

103

Total

478

16

392

103

Treasury shares(Note 1)
(Note 2)
(Note 3)(Note 4)

2.

The increase in the number of issued shares of common shares is due to an increase of 2,153 thousand shares due to theshare exchange with A&T Corporation.
The increase in the number of treasury shares of common shares is due to an increase of 16 thousand shares due topurchase of less than a share-trading unit.
The decrease in the number of treasury shares of common shares is a decrease due to the share exchange with A&T
Corporation of 390 thousand shares, the request for additional purchase of 0 thousand shares constituting less than one
share unit and the sale of a portion of the Company’s shares totaling 2 thousand shares held by Director Remuneration
BIP (Board Incentive Plan) Trust.
Included in the number of treasury shares as of the beginning and as of the end of the fiscal year under review are 94
thousand shares and 92 thousand shares, respectively, held by The Master Trust Bank of Japan, Ltd. (executive
compensation BIP trust account; 76,292 accounts).

Dividends(1) Dividend amount paid

Resolution

Class of shares

Dividend
Dividend per share(Millions of yen)
(yen)

Reference date

Effective date

Source ofdividends

Ordinary General
Meeting ofCommonRetained
2,434
35.00 March 31, 2020
June 25, 2020
Shareholders
sharesearnings(June 24, 2020)
Board ofDirectors
Retained
September 30,
CommonDecember 1, 2020
2,434
35.00
Meetingearnings
2020
shares(October 28,
2020)(Note) Included in the total amount of dividends decided by the Ordinary General Meeting of Shareholders on June 24, 2020 is ¥3
million worth of dividends related to 94 thousand Company shares (treasury shares) held in the executive compensation BIP
trust account.
Included in the total amount of dividends decided by the Board of Directors Meeting on October 28, 2020 is ¥3 million
worth of dividends related to 92 thousand Company shares (treasury shares) held in the executive compensation BIP trust
account.
(2) Dividends whose record date is within the consolidated fiscal year and whose effective date is in the following consolidated
fiscal year

Resolution

Class ofsharesDividend(Millions of yen)

Dividend per
share
(yen)

Reference date

Effective date

Source ofdividends

Ordinary General
Meeting ofCommonRetained
2,522
35.00
March 31, 2021
June 28, 2021
Shareholders
sharesearnings(June 25, 2021)(Note) Included in the total amount of dividends decided by the Ordinary General Meeting of Shareholders on June 25, 2021 is ¥3
million worth of dividends related to 92 thousand Company shares (treasury shares) held in the executive compensation BIP
trust account.
―22―

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Consolidated Statements of Cash Flows)*1 Reconciliation between the balance of cash and cash equivalents at end of period and relevant amount on the consolidatedbalance sheets

Fiscal year ended March 31, 2020
Cash and deposits
Time deposit whose deposit period
exceeds 3 months
Cash and cash equivalents

81,524 million yen

Fiscal year ended March 31, 2021
83,681 million yen

(605)

(631)

80,91883,050(Lease Transactions)(Lessee)(1) Operating lease transactions
Future lease payments related to noncancelable operating lease transactions(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Due within one year

477

741

Due beyond one year

1,042

3,425

1,520

4,167

Total

(Lessor)(1) Operating lease transactions
Future lease income related to noncancelable operating lease transactions(Millions of yen)
As of March 31, 2020

As of March 31, 2021

Due within one year

123

86

Due beyond one year

945

812

1,069

899

Total

―23―

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04(Financial Instruments)
1. Matters Regarding Financial Instruments(1) Management policy on financial instruments
The Group raises funds as required (mainly through bank loans and the issuance of corporate bonds) in line with its business
investment program aimed at implementing a customer-oriented approach toward “strengthening the profitability of its
businesses.” The Group invests temporary surplus funds in highly secure financial assets and raises short-term operating capitalwith bank loans and CP (commercial paper). We use derivatives only to hedge risks described below and have a policy of not
implementing derivative transactions for speculative purposes.
(2) Type and risk of financial instruments
Notes and accounts receivable – trade, which are operating receivables, are exposed to credit risks of customers. In addition,although foreign currency-denominated receivables are exposed to foreign exchange fluctuation risk, the Company takes
measures to reduce that risk by managing its foreign currency exposure by letting them be equal to foreign currencydenominated debts and implementing forward exchange contracts on an as needed basis.
Investment securities are mainly shares related to business or capital tie-ups with counterparties, etc., and available for-salesecurities are exposed to the risk of market price fluctuations. In addition, the Group provides long-term loans to counterparties
and others.
Notes and accounts payable – trade, which are operating payables, become due within one year. In addition, although foreign
currency-denominated debts are exposed to foreign exchange fluctuation risk, the Company takes measures to reduce that risk
by managing its foreign currency exposure by letting them be equal to foreign currency-denominated receivables andimplementing forward exchange contracts on an as needed basis.
Borrowings and bonds payable are principally for raising funds necessary for capital investments, and the repayment datecomes up to 57 years after the balance sheet date. Floating rate borrowings are exposed to interest rate risk, some of which are
hedged using derivative transactions (interest rate swaps).
There are three types of derivative transaction: forward exchange contracts for the purpose of curbing the foreign exchange
fluctuation risks associated with foreign currency-denominated receivables and payables and forecast transactions; interest rate
swap transactions for the purpose of fixing the interest rate on borrowings or reducing the interest expenses; and currency swap
transactions aimed at reducing exchange rate risk in transactions between the Company and its overseas subsidiaries. With
regard to hedging instruments and hedged items related to hedge accounting, hedge policies and hedge effectiveness evaluation
methods, please refer to “(9) Method of significant hedge accounting” described in “4. Significant accounting policies.”(3) Risk management system for financial instruments(i)Management of credit risk (risk related to default of counterparties, etc.)
With regard to operating receivables and loans receivable, the Company has a division in charge in each businessdepartment monitoring the status of major counterparties regularly and managing maturities and balances for eachcounterparty in accordance with the credit management rules and others, while making efforts to identify early andmitigate any concerns about collection arising from deterioration in the economic environment, their financial position, etc.
Consolidated subsidiaries also conduct similar management as necessary in conformity with the Company’s credit
management rules and others.
In the use of derivative transactions, the Company conducts transactions only with financial institutions with high credit
ratings to mitigate counterparty risk.

(ii)Management of market risk (fluctuation risk of foreign exchange, interest rate, etc.)
On an as needed basis, the Company and some of its consolidated subsidiaries use forward exchange contracts with respect
to the identified currency fluctuation risks of foreign currency-denominated receivables and debts. Some overseas
subsidiaries also use currency swap transactions to reduce their exposure to exchange rate risk in their transactions with theparent company.
In addition, the Company and some of its consolidated subsidiaries use interest rate swaps to reduce the risk of fluctuations―24―ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04

in interest payments on borrowings.
The Company periodically assesses the fair value of securities and investment securities as well as financial conditions ofissuers (counterparty companies), etc., and continuously reviews the holding status in view of relationships withcounterparty companies.
With regard to derivative transactions, the Finance & Investment Management Dept. conducts transactions based on theinterest rate risk management policy and foreign exchange risk management policy approved by the Board of Directors,
makes entries and collates the balances with contract partners, etc. For consolidated subsidiaries, the Finance & Investment
Management Dept. also manages derivative transactions by having them report the content of derivative transactions to thecenter when they conduct such transactions or by other means.
(iii)

Management of liquidity risk associated with financing (risk of inability to make a payment on due date)
The Company manages liquidity risk through timely preparation and updating of the cash flow management plan by the
Finance & Investment Management Dept. based on reports from each division and by maintaining liquidity on hand at a
certain level and by other means.

(4) Supplemental remarks on fair values of financial instruments
Fair values of financial instruments comprise values based on market prices and reasonably determined values where market
prices are unavailable. Since variable factors are incorporated in calculation of the fair value, the value may vary depending on
different preconditions adopted. In addition, the contract amounts of derivative transactions described in “2. Fair values offinancial instruments” should not be, in themselves, considered indicative of the market risk associated with derivativetransactions.

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2. Fair values of financial instruments
The book value of financial instruments, their fair value, and the differences between the two were as follows. The financial
instruments whose fair value is extremely difficult to determine are not given in the table below.
As of March 31, 2020
Book value(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

(1) Cash and deposits

81,524

81,524－(2) Notes and accounts receivable trade72,92972,929

－

9,280

9,280

－

2,302

2,302

－

Total assets

166,036

166,036－(1) Notes and accounts payable - trade

42,79542,795－(2) Short-term borrowings

3,082

3,082

－

(3) Long-term borrowings (Note 1)

110,361

110,918556

Total liabilities

156,240

156,796

556

(10)

(10)

－

(51)

(54)

(2)

(61)

(64)

(2)

(3) Investment securities
Available-for-sale securities(4) Long-term loans receivable

Derivative financial instruments(Note 2)In which hedge accounting is notappliedIn which hedge accounting is applied
Total derivative financial instruments(Note 1)
(Note 2)The book value and fair value of long-term borrowings include the current portion of long-term borrowings.
Receivables and payables arising from derivative transactions are presented on a net basis, and a value of a net payable
after totaling receivables and payables is shown in parentheses.

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

As of March 31, 2021
Book value(Millions of yen)

Fair value(Millions of yen)

Difference(Millions of yen)

(1) Cash and deposits

83,681

83,681－(2) Notes and accounts receivable trade70,90170,901－

Available-for-sale securities

13,265

13,265－(4) Long-term loans receivable(Note 1)

2,279

2,279

－

Total assets

170,128

170,128－(1) Notes and accounts payable – trade39,54739,547－(2) Short-term borrowings

1,850

1,850

－

(3) Long-term borrowings (Note 2)

91,711

92,027315

Total liabilities

133,109

133,425

315

(23)

(23)

－

(27)

(29)

(1)

(50)

(52)

(1)

(3) Investment securities

Derivative financial instruments(Note 3)In which hedge accounting is notappliedIn which hedge accounting is applied
Total derivative financial instruments(Note 1)
(Note 2)
(Note 3)The book value and fair value of long-term loans receivable include the current portion of long-term loans receivable.
The book value and fair value of long-term borrowings include the current portion of long-term borrowings.
Receivables and payables arising from derivative transactions are presented on a net basis, and a value of a net payable
after totaling receivables and payables is shown in parentheses.

Note 1: Method for calculating the fair value of financial instruments, and matters regarding securities and derivative transactions
Assets(1) Cash and deposits and (2) Notes and accounts receivable - trade
Because these assets are mostly settled in a short period, their fair value is nearly equal to their book value. Therefore,
their fair value is based on the book value.
(3) Investment securities
The fair value of available-for-sale securities is based on the price on the relevant exchange.
For matters to be noted on securities for each holding purpose, refer to the note “Securities.”(4) Long-term loans receivable
Because all long-term loans receivable bear floating interest rates and reflect market interest rates in a short period, andcredit standing of borrowers has not changed significantly since the loans were executed, their fair value is based on thebook value.
Liabilities(1) Notes and accounts payable – trade and (2) Short-term borrowings
Because these liabilities are settled in a short period, their fair value is nearly equal to their book value. Therefore, theirfair value is based on the book value.
(3) Long-term borrowings
The fair value of these liabilities is determined as the present value, which is calculated by discounting the total ofprincipal and interest using the interest rate that would be charged for a new similar loan.

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Derivatives
Refer to the note “Derivatives.”
Note 2: Financial instruments whose fair value is extremely difficult to determine(Millions of yen)Class

As of March 31, 2020

As of March 31, 2021

Unlisted shares

1,882

2,068

Shares of associates

7,142

10,757

Bonds of associates

1,080

1,080

10,104

13,905

Total

These financial instruments have no market price, and estimation of their future cash flows is expected to require
excessive cost. Therefore, since it is considered extremely difficult to determine the fair value, they are not included in“Assets (3) Investment securities.”
Note 3: Redemption schedule for monetary receivables and securities with maturities after the consolidated balance sheet date
As of March 31, 2020
(Millions of yen)More than 1 More than 5More than 10
Within 1 year year, within 5 years, within
years
10 years
years
Cash and deposits

81,524－－－

Notes and accounts receivable - trade72,929

－

－

－

－

944

847

510

154,453

944

847

510

Long-term loans receivable
Total
As of March 31, 2021

(Millions of yen)More than 1 More than 5More than 10
Within 1 year year, within 5 years, within
years
years
10 years
Cash and deposits

83,681－－－

Notes and accounts receivable - trade70,901

－

－

－

185

726

857

510

154,768

726

857

510

Long-term loans receivable
Total

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Note 4: Repayment schedule by term for bonds payable, long-term borrowings and other interest-bearing debt after the consolidatedbalance sheet date
As of March 31, 2020
(Millions of yen)
More
than
2
More
than
3
More
than
4
More than 1
More than 5
Within 1 year year, within 2 years, within 3 years, within 4 years, within 5
years
years
years
years
years
Short-term borrowings

3,082

－

－

－

－

－

Bonds payable (Note)

－

－

－

－

－

－

Long-term borrowings

16,106

9,918

21,966

1,122

536

60,711

19,189

9,918

21,966

1,122

536

60,711

Total(Note) In the cases of the 22nd and 24th series of unsecured bonds, we delegated the performance of the obligation based onan unsecured bond trust-type debt assumption agreement that had been executed with a bank. Accordingly, although
the liabilities pertaining to those unsecured bonds and the amount paid under that same contract offset each other,since the obligation to redeem the Company’s unsecured bonds to bondholders continues until the time of theirredemption, this is noted as a contingent liability on the consolidated balance sheets.
As of March 31, 2021
(Millions of yen)More than 1 More than 2 More than 3 More than 4More than 5
Within 1 year year, within 2 years, within 3 years, within 4 years, within 5
years
years
years
years
years
Short-term borrowings

1,850

－

－

－

－

－

Bonds payable (Note)

－

－

－

－

－

－

Long-term borrowings

8,899

20,965

681

452

249

60,463

10,74920,965

681

452

249

60,463

Total(Note) In the cases of the 24th series of unsecured bonds, we delegated the performance of the obligation based on an
unsecured bond trust-type debt assumption agreement that had been executed with a bank. Accordingly, although theliabilities pertaining to those unsecured bonds and the amount paid under that same contract offset each other, since
the obligation to redeem the Company’s unsecured bonds to bondholders continues until the time of their redemption,
this is noted as a contingent liability on the consolidated balance sheets.

―29―

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Securities)
1. Trading securities
Not applicable.
2. Held-to-maturity debt securities
Not applicable.
3. Available-for-sale securities
As of March 31, 2020
Book value(Millions of yen)

Acquisition cost
(Millions of yen)

Unrealized gain
(Millions of yen)

Securities with book values
exceeding acquisition costs
Equity securities

3,944

2,532

1,412

Debt securities

－

－

－

Other

－

－

－

3,944

2,532

1,412

Equity securities

5,335

5,898

(562)

Debt securities

－

－

－

Other

－

－

－

Subtotal

5,335

5,898

(562)

Total

9,280

8,430

850

Subtotal
Securities with book values
not exceeding acquisition
costs

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As of March 31, 2021
Book value(Millions of yen)

Acquisition cost
(Millions of yen)

Unrealized gain
(Millions of yen)

Securities with book values
exceeding acquisition costs
Equity securities

12,798

7,873

4,925

Debt securities

－

－

－

Other

－

－

－

12,798

7,873

4,925

Equity securities

467

537

(69)

Debt securities

－

－

－

Other

－

－

－

Subtotal

467

537

(69)

Total

13,265

8,410

4,855

Subtotal
Securities with book values
not exceeding acquisition
costs

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

4. Available-for-sale securities soldFiscal year ended March 31, 2020
Book value(Millions of yen)
Equity securities

Acquisition cost
(Millions of yen)

Unrealized gain
(Millions of yen)

14

8

1

Government andmunicipal bonds

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

14

8

1

Debt securities

Other
Total

Fiscal year ended March 31, 2021
Book value(Millions of yen)
Equity securities

Acquisition cost
(Millions of yen)

Unrealized gain
(Millions of yen)

133

77

－

Government andmunicipal bonds

－

－

－

Corporate bonds

－

－

－

Other

－

－

－

－

－

－

133

77

－

Debt securities

Other
Total

5. Impairment of marketable securities
During the previous consolidated fiscal year, an impairment of ¥4,531 million was made for securities (equity securities ofavailable-for-sale securities). In making impairments of stocks that decline 30% to 50%, the Company makes a comprehensive
assessment for each individual issue by considering the stock price movements over the past two years and quantitatively evaluating
credit risk by examining various figures based on the published financial statements.

―32―

更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Derivatives)
1. Derivative transactions to which hedge accounting is not applied(1) Currency-related derivatives
As of March 31, 2020
Not applied Hedge
accounting method
Principle-based
accounting

Transaction type

Main hedged items

Notional value(Millions of yen)

Maturing after one
Fair value
year(Millions of yen)
(Millions of yen)

Currency swap
Receiving JPY, Paying
TWD

Long-term
borrowings

Total

400

220

(10)

400

220

(10)

(Note) Method for calculation of fair value
Fair values are calculated based on the price presented by counterparty financial institutions, etc.
As of March 31, 2021
Not applied Hedge
accounting method
Principle-based
accounting

Transaction type

Main hedged items

Notional value(Millions of yen)

Maturing after one
Fair value
year(Millions of yen)
(Millions of yen)

Currency swap
Receiving JPY, Paying
TWD

Long-term
borrowings

Total

220

－

(23)

220

－

(23)

(Note) Method for calculation of fair value
Fair values are calculated based on the price presented by counterparty financial institutions, etc.
(2) Interest
Not applicable
2. Derivative transactions to which hedge accounting is applied(1) Currency-related derivatives
As of March 31, 2020
Not applicable.
As of March 31, 2021
Not applicable.

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更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(2) Interest
As of March 31, 2020
Hedge accounting
methodTransaction type

Main hedged items

Notional value(Millions of yen)

Maturing after one
Fair value
year(Millions of yen)
(Millions of yen)Interest rate swaps
Principle-based
accounting

Pay fixed rate, receive
floating rateLong-term
borrowings

Subtotal

3,800

2,200

(51)

3,800

2,200

(51)

450

270

(2)

450

270

(2)

4,250

2,470

(54)

Interest rate swaps
Special treatment
for interest rate
swaps

Pay fixed rate, receive
floating rateLong-term
borrowings

Subtotal
Total(Note) Method for calculation of fair value
Fair values are calculated based on the price presented by counterparty financial institutions, etc.
As of March 31, 2021
Hedge accounting
methodTransaction type

Main hedged items

Notional value(Millions of yen)

Maturing after one
Fair value
year(Millions of yen)
(Millions of yen)Interest rate swaps
Principle-based
accounting

Pay fixed rate, receive
floating rateLong-term
borrowings

Subtotal

2,200

1,000

(27)

2,200

1,000

(27)

270

90

(1)

270

90

(1)

2,470

1,090

(29)

Interest rate swaps
Special treatment
for interest rate
swaps

Pay fixed rate, receive
floating rateLong-term
borrowings

Subtotal
Total(Note) Method for calculation of fair value
Fair values are calculated based on the price presented by counterparty financial institutions, etc.

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更新日時:2021/06/28 13:15:04(Retirement Benefits)
1. Outline of adopted retirement benefit plans
The Company and its consolidated domestic subsidiaries have lump-sum severance benefits plans and defined benefit pension plans
as a vested benefits system (DB scheme). They also have defined contribution pension plans as DC scheme. The Company and its
consolidated domestic subsidiaries may pay, under certain circumstances, extra retirement allowances when their employees leave thecompanies. The Company has a retirement benefit trust.
2. Defined benefit plans(1) Reconciliation of beginning and ending balances of retirement benefit obligations

Fiscal year ended March 31, 2020
Balance of defined benefit
obligations at beginning of year
Service cost
Interest cost
Occurrence of actuarial gain andloss
Payments of retirement benefits

17,279 million yen

Fiscal year ended March 31, 2021
17,367

946

866

124

123

(54)

151

(905)

(896)

million yen

Other
(23)
(565)
Balance of defined benefit
17,367
17,047
obligations at end of year
(Note) The consolidated domestic subsidiaries, except for two companies, have adopted the simplified accounting method in
calculating retirement benefit obligations.
(2) Reconciliation of beginning and ending balances of pension assets

Fiscal year ended March 31, 2020
Balance of pension assets at
beginning of year
Expected return on pension assets
Occurrence of actuarial gain andloss
Corporation's contributions

24,926 million yen

Fiscal year ended March 31, 2021
24,659

470

264

(608)

1,095

562

590

Payments of retirement benefits

(692)

(545)

Other
Balance of pension assets at end of
year

－

(346)

24,65925,717―35―

million yen

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04(3) Reconciliation of ending balances of retirement benefit obligations and pension assets to retirement benefit liability
and retirement benefit asset recorded in the consolidated balance sheets

As of March 31, 2020

As of March 31, 2021

Funded defined benefit obligations

15,343 million yen

15,056

Pension assets(24,659)(25,717)(9,315)(10,661)

Unfunded defined benefit obligations

2,023

1,991

Net amount shown on consolidatedbalance sheets(7,291)(8,669)Retirement benefit liability

2,277

1,991

Retirement benefit asset(9,569)(10,660)

Net amount shown on consolidatedbalance sheets(7,291)(8,669)million yen(4) Retirement benefit expenses and a breakdown of the retirement benefit expenses

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Service cost (Note)

946 million yen

866 million yen

Interest cost

124

123

Expected return on pension assets

(470)

(264)

Expensed actuarial gain and loss
(383)
48
Retirement benefit expenses
217
774
regarding to vested benefits system(Note) Retirement benefit expenses of the consolidated domestic subsidiaries that have adopted the simplified accounting
method are included in “Service cost.”(5) Remeasurements of defined benefit plans
A breakdown of items recorded in remeasurements of retirement benefit plans (before deduction of tax effects) is as follows:

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Actuarial gain and loss(937) million yen

992 million yen

Total

(937)

992

(6) Accumulated adjustment of retirement benefit plans
A breakdown of items recorded in accumulated adjustment of retirement benefit plans (before deduction of tax effects) is asfollows:

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Unrecognized actuarial gain and loss

2,850 million yen

3,907 million yen

Total

2,850

3,907

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04(7) Matters relating to pension assets(i) Principal items of pension assets
The proportion of each principal category to the total of pension assets is as follows:
As of March 31, 2020

As of March 31, 2021

Domestic stocks

9 %

8 %

Foreign stocks

6

8

Domestic bonds

25

43

Foreign bonds

9

16

Insurance product (General account)17

16

Deposits

12

9

Other

22

0

Total

100

100

(Note) Total of pension assets as of March 31, 2020 and March 31, 2021 included a retirement benefit trust, established for
the Company’s pension plans that represented 10% and 9% of the total of pension assets, respectively.
(ii) Method for setting the expected long-term rate of return
The expected long-term rate of return on pension assets has been set based on the allocation of the pension assets as well as
the current and expected rate of return from each category of the pension assets.
(8) Matters relating to the basis for calculation used in the actuarial calculation
Main basis for calculation used in the actuarial calculation (principally represented by the rate used)
As of March 31, 2020

As of March 31, 2021

0.8 ％

0.8 ％

2.1

1.2

Discount rate
Expected long-term return on pension
assets3.

Defined contribution plans
The amount which the Company and its consolidated subsidiaries were required to contribute to the defined contribution plans was¥526 million for the previous consolidated fiscal year and ¥535 million for the consolidated fiscal year under review.

(Stock Options)Not applicable.

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Tax Effect Accounting)
1. Breakdown of deferred tax assets and liabilities by their main occurrence causes
As of March 31, 2020
Deferred tax assets:

As of March 31, 2021

(Millions of yen)

(Millions of yen)

Deficits (Note 2)

51,82747,315

Provision for repairs

2,051

2,422

Excess depreciation and amortization

2,388

2,134

Investment securities

1,392

1,381

Provision for bonuses

989

949

Retirement benefit liability

832

719

Inventories

692

629

Amount carried forward tax credit limit excess

1,125

－

Other

2,872

2,888

64,17358,442

Valuation allowance (Deficits) (Note 2)(35,222)(32,026)

Valuation allowance (Temporary difference)(4,514)(3,452)(39,736)(35,479)

24,43622,963(2,729)(3,059)(263)(1,298)(1,167)(973)

Subtotal of deferred tax assets

Less valuation allowance (Note 1)
Total deferred tax assets
Deferred tax liabilities:
Prepaid pension costs
Valuation difference on available-for-salesecurities
Reserve for tax purpose reduction entry
Retained earnings of subsidiaries and affiliates

(747)

(878)

Other

(569)

(592)

Total deferred tax liabilities(5,477)(6,803)Net deferred tax assets

18,95916,159(Note 1) Valuation allowance decreased by ¥4,257 million. This decline is primarily due to a ¥3,196 million decrease invaluation allowance (deficits) due to a decline in loss carry-forwards.
(Note 2) Amounts of deficits and related deferred tax assets by tax loss carry-forwards were as follows.
As of March 31, 2020
(Millions of yen)More than More than More than More thanWithin 1
1 year,2 years,
3 years,
4 years, More thanyear
within 2 within 3 within 4 within 5
5 years
years
years
years
years

Total

Deficits (Note 1)

50

340

531

281

587

50,036

51,827

Valuation allowance

(41)

(202)

(530)

(245)

(587)

(33,615)(35,222)

Deferred tax assets

9

137

1

35

－

16,421

16,605(Note 1) Deficits are the amount after multiplying the statutory tax rate.

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As of March 31, 2021
(Millions of yen)More than More than More than More thanWithin 1
1 year,2 years,
3 years,
4 years, More thanyear
within 2 within 3 within 4 within 5
5 years
years
years
years
years

Total

Deficits (Note 2)

90

494

207

596

13,54532,38047,315

Valuation allowance

(3)

(410)

(200)

(513)

(641)

(30,256)(32,026)

Deferred tax assets

86

83

6

83

12,9042,124(Note 3) 15,289(Note 2) Deficits are the amount after multiplying the statutory tax rate.
(Note 3) Regarding deficits of ¥47,315 million (amount after multiplying the statutory tax rate), the Company recorded
deferred tax assets of ¥15,289 million.
Regarding deficits, valuation allowance related to the portion deemed to be recoverable based on future taxable
income forecasts is not recognized.
2. Reconciliation of significant difference between the statutory tax rate and the effective income tax rate after applying tax effectaccounting
As of March 31, 2020

As of March 31, 2021

Statutory tax rate

30.5 %

30.5 %

Increase (decrease) in income taxes resulting from:
Change in valuation allowance allocated to income
tax expenses
Effect of tax credits

(4.4)

(9.5)

(3.7)

(4.2)

－

3.3

(3.7)

(2.5)

0.4

(2.4)

Effect of exclusion from the scope of consolidation
Dividend and other items excluded permanently
from taxable income
Inter-company eliminations of allowance forinvestment loss
Inter-company eliminations of dividends income
Other
Effective income tax rate
(Business Combination)
Description of content has been omitted due to a lack of importance.

―39―

1.5

1.7

4.3

1.4

24.8

18.2

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更新日時:2021/06/28 13:15:04(Asset Retirement Obligations)
1. Asset retirement obligations included in the consolidated balance sheets
The Group has obligations to restore a site to its original state at the time of leaving or termination of the business and aftertermination of mining for branches, etc., that use an office under a real estate lease agreement or certain business offices that use aplant or site for sales facilities, as well as mines. Of these obligations, for certain obligations to restore a site to its original state at
the time of leaving under a building lease agreement for which the timing of performance and amount can be reasonably estimatedat the present moment, asset retirement obligations have been recorded. The note on the content of asset retirement obligations isomitted because of immateriality.
2. Asset retirement obligations not included in the consolidated balance sheets
Because past records other than those stated in 1. above are poor, the period of use of the leased asset related to the obligations is
uncertain, and there is no plan for relocation, etc., or mine closure at the present moment, it is difficult to reasonably estimate thetiming, scope and probability of execution for the obligations. Therefore, asset retirement obligations corresponding to the
obligations have not been recorded.
(Investment and Rental Properties)
Information is omitted because of immateriality of the total amount of investment and rental properties.

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

更新日時:2021/06/28 13:15:04(Segment Information)
Business segment information
1. Summary of reportable segments
The reportable segments in the Company are defined as individual units, where separate financial information is available and which
are subject to regular review to evaluate their results and decide the allocation of management resources by the board of directors.
The Company has business divisions by product group, and conducts business operations through each business division devising its
comprehensive product strategy for domestic and overseas markets.
The Company is, therefore, composed of reportable segments by product group based on business divisions and has four reportablesegments, “Chemicals,” “Specialty Products,” “Cement” and “Life & Amenity.”
Main products and services of each reportable segment are as follows:
Reportable segment
Chemicals
Specialty Products
CementLife & Amenity

Major products and services
Caustic soda, Soda ash, Calcium chloride, Sodium silicate, Vinyl chloride monomer, Polyvinyl
chloride resin, Propylene oxide, Isopropyl alcohol, Chlorinated solvents and hydrogen
Polycrystalline silicon, Fumed silica, Tetrachlorosilane, Aluminum nitride, High-purity chemicals
for electronics manufacturing and Photoresist developer
Cement, Ready-mixed concrete, Cement-type stabilizer and Resource recycling business
Polyolefin film, Plastic window sashes, Medical diagnostic systems, Dental materials andequipment, Ion exchange membranes, Pharmaceutical ingredients and intermediates, Plastic lensrelated materials for glasses and Microporous film

2. Calculation of net sales, profit (loss), assets and other items by reportable segment
The accounting methods applied to reportable segments are identical to those stated in “Significant accounting policies.”
Inter-segment sales or transfer are based on market prices.
Reportable segment’s profit (loss) is based on operating profit.

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3. Information on net sales, profit (loss), assets and other items by reportable segment
Fiscal year ended March 31, 2020
(Millions of yen)
Reportable segment
Others(Note 1)

Total

54,34738,651

316,096－

316,096

673

1,960

26,58140,929(40,929)－54,46687,28956,307

65,232357,026(40,929)

316,096

15,366

7,058

3,835

2,885

6,935

36,082(1,801)

34,281

48,27761,03955,277

57,95550,001

272,551

110,895

383,447

Chemicals

Specialty
Products

CementLife &
Amenity

Sales to customers

92,75543,726

86,616

Inter-segment
sales/transfer

975

10,739Total sales

93,730

Segment profit
Segment assets

Adjustment Consolidated(Note 3)(Note 2)

Net sales

Other items
Depreciation and
2,750
2,926
3,422
2,460
3,679
15,239882
16,122amortization (Note 4)
Increase in property,
plant and equipment
3,106
8,059
4,219
2,602
3,478
21,467
3,182
24,649and intangible assets(Note 5)(Note 1)The “Others” segment comprises businesses other than those of the reportable segments and includes overseas sales
business, a distribution business, a real estate business, etc.
(Note 2)Adjustments are as follows:(i) The segment profit adjustment amount consists mainly of basic R&D expenses that are not allocable to a specificreportable segment and the amount of inter-segment eliminations.
(ii) The segment assets adjustment amount includes corporate assets that are not allocated to a specific reportablesegment (¥137,395 million).
(Note 3)
Segment profit is adjusted for operating profit in the consolidated financial statements.
(Note 4)
Depreciation and amortization includes amortization of long-term prepaid expenses.
(Note 5)
Increase in property, plant and equipment and intangible assets includes the amount of increase in long-term prepaid
expenses.

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

Fiscal year ended March 31, 2021
(Millions of yen)
Reportable segment
Others(Note 1)

Total

44,20637,679302,407－

302,407

627

1,730

15,95731,270(31,270)－

57,77990,86445,936

53,637

333,677(31,270)

302,407

14,118

6,572

4,580

3,107

5,623

34,002(3,080)30,921

51,46467,31057,85846,374

48,841

271,850

114,944386,794

Chemicals

Specialty
Products

CementLife &
Amenity

Sales to customers

84,59045,69390,236

Inter-segment
sales/transfer

868

12,086

Total sales

85,459Segment profit
Segment assets

Adjustment Consolidated(Note 3)(Note 2)

Net sales

Other items
Depreciation and
2,776
3,580
3,750
2,097
3,630
15,836
1,167
17,003amortization (Note 4)
Increase in property,
plant and equipment
3,711
6,037
5,221
2,783
5,869
23,624
3,456
27,080and intangible assets(Note 5)(Note 1)The “Others” segment comprises businesses other than those of the reportable segments and includes overseas sales
business, a distribution business, a real estate business, etc.
(Note 2)Adjustments are as follows:(i) The segment profit adjustment amount consists mainly of basic R&D expenses that are not allocable to a specificreportable segment and the amount of inter-segment eliminations.
(ii) The segment assets adjustment amount includes corporate assets that are not allocated to a specific reportablesegment (¥144,519 million).
(Note 3)
Segment profit is adjusted for operating profit in the consolidated financial statements.
(Note 4)
Depreciation and amortization includes amortization of long-term prepaid expenses.
(Note 5)
Increase in property, plant and equipment and intangible assets includes the amount of increase in long-term prepaid
expenses.

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Related information
Fiscal year ended March 31, 2020
1. Information by product and service
Information is omitted as identical information is disclosed in segment information.
2. Information by region(1) Net sales(Millions of yen)
Japan

Asia
256,493

Others47,290Total
12,312

316,096(Note) Net sales are categorized into countries or regions based on the location of customers.
(2) Property, plant and equipment
The listed amount of property, plant and equipment has been omitted because over 90% of property, plant and equipment
listed on consolidated balance sheets is located in Japan.
3. Information by major customer
Information is omitted because no external customer accounts for 10% or more of net sales in the consolidated statements
of income.
Fiscal year ended March 31, 2021
1. Information by product and service
Information is omitted as identical information is disclosed in segment information.
2. Information by region(1) Net sales(Millions of yen)
Japan

Asia
238,722

Others51,742

Total
11,942

302,407(Note) Net sales are categorized into countries or regions based on the location of customers.
(2) Property, plant and equipment
The listed amount of property, plant and equipment has been omitted because over 90% of property, plant and equipment
listed on consolidated balance sheets is located in Japan.
3. Information by major customer
Information is omitted because no external customer accounts for 10% or more of net sales in the consolidated statements
of income.

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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx

Information on impairment losses on non-current assets by reportable segment
Fiscal year ended March 31, 2020
(Millions of yen)
Chemicals
Impairment
lossesSpecialty
Products

34

Life &
Amenity

Cement－－Others－Adjustment
－

Total
34

－

Fiscal year ended March 31, 2021
(Millions of yen)
Chemicals
Impairment
lossesSpecialty
Products

16Life &
Amenity

Cement－Others745－

Adjustment
64

Total
825

－

Information on amortization of goodwill and unamortized balance reportable segment
Fiscal year ended March 31, 2020
(Millions of yen)
Chemicals
Amortizationof goodwill
UnamortizedbalanceSpecialty
Products

Life &
Amenity

CementOthersAdjustment

Total

－

7

197

－

－

－

204

－

3

－

－

－

－

3

There is neither amortization of negative goodwill nor unamortized balance arising from business combinations conducted
on and before April 1, 2010.
Fiscal year ended March 31, 2021
(Millions of yen)
Chemicals
Amortizationof goodwill
UnamortizedbalanceSpecialty
Products

Life &
Amenity

CementOthersAdjustment

Total

－

3

6

－

－

－

9

－

－

86

－

－

－

86

There is neither amortization of negative goodwill nor unamortized balance arising from business combinations conducted
on and before April 1, 2010.
Information on gain on bargain purchase by reportable segment
Fiscal year ended March 31, 2020
In the fiscal year under review, the Company records gain on bargain purchase of ¥157 million under “Cement” segment.
Fiscal year ended March 31, 2021
Not applicable.
Information on related parties
Fiscal years ended March 31, 2020 and 2021
Not applicable.

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更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(Per Share Information)

Item

Fiscal year ended March 31, 2020

Fiscal year ended March 31, 2021

Net assets per share (yen)2,431.21

2,758.37

Earnings per share (yen)287.05351.11

Not applicable because there are no
dilutive shares.

Diluted earnings per share (yen)Not applicable because there are no
dilutive shares.

(Note 1) The basis for calculation
1. Net assets per share
Item

As of March 31, 2020

As of March 31, 2021

Total net assets on consolidated balance sheets (Millionsof yen)180,429205,261

Net assets related to common shares (Millions of yen)

168,861

198,561

11,5686,700

69,93472,088478

103

69,45571,984

Major breakdown of difference (Millions of yen)
Non-controlling interests
Number of shares outstanding of common shares(Thousands of shares)
Number of treasury shares of common shares(Thousands of shares)
Number of common shares used to calculate net assets
per share (Thousands of shares)
2. Earnings per share

Fiscal year ended
March 31, 2020

Item
Profit attributable to owners of parent (Millions of yen)

(Note 2)

19,937

Fiscal year ended
March 31, 2021
24,534

Amount not attributable to common shareholders－－(Millions of yen)
Profit related to common shares attributable to owners of
19,937
24,534parent (Millions of yen)
Average number of common shares during the period
69,45569,877(Thousands of shares)
Company shares held in the executive compensation BIP (Board Incentive Plan) trust are included in treasury sharesdeducted from the total number of shares issued at the end of the consolidated fiscal year in calculating “net assets per
share.” The number of Company shares held in the executive compensation BIP trust at the end of the consolidated fiscal
year under review was 92 thousand shares. (The number of Company shares at the end of the previous fiscal year was 94
thousand shares)
Company shares held in the executive compensation BIP trust are included in treasury shares deducted when calculating
the average number of common shares for the consolidated fiscal year. Of note, the average number of Company sharesfor the consolidated fiscal year under review held in the executive compensation BIP trust is 92 thousand shares (theaverage number of Company shares for the previous consolidated fiscal year was 96 thousand shares.)(Significant Subsequent Events)
Not applicable.

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更新日時:2021/06/28 13:15:04

ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(v) Annexed consolidated detailed schedules
Schedule of bonds payable
as ofBalance as of Balance
Interest
March 31,
Term of
April
1,
2020
rate
CollateralCompany
Issue
2021(Millions of (Millions ofredemption
(%)
yen)
yen)
22nd unsecured bonds September 9,15,000
September 9,－
Tokuyama
1.478
No
without collateral
2010(15,000)(－)
2020
24th unsecured bonds September 8,
9,400
9,400
September 8,
Tokuyama
1.371
No
without collateral
2011(9,400)(9,400)2021
24,400
9,400
Total
―
―
―
―
(24,400)(9,400)(Note 1)In the cases of the 22nd and 24th series of unsecured bonds, we delegated the performance of the obligation based on an
unsecured bond trust-type debt assumption agreement that had been executed with a bank. Accordingly, although theliabilities pertaining to those unsecured bonds and the amount paid under that same contract offset each other, since theobligation to redeem the Company’s unsecured bonds to bondholders continued until the time of their redemption, this isnoted as a contingent liability on the consolidated balance sheets.
(Note 2)
Amounts in parentheses represent amounts due within one year.
(Note 3)
Amounts of redemption within five years after the consolidated balance sheet date are as follows:
Date ofissuance

Within 1 year
(Millions of yen)More than 1 year,
within 2 years(Millions of yen)More than 2 years,
within 3 years(Millions of yen)More than 3 years,
within 4 years(Millions of yen)More than 4 years,
within 5 years(Millions of yen)

－

－

－

－

9,400

Schedule of borrowings
Balance as ofApril 1, 2020
(Millions of yen)

Balance as ofMarch 31, 2021 Average interest rate(%)
(Millions of yen)

Repayment date

Short-term borrowings

3,082

1,850

0.41

―

Current portion of long-termborrowings

16,106

8,899

0.83

―

870

1,204

－

―

94,25582,812

1.442021 - 2078

2,028

3,671

－

2021 - 2041

116,344

98,437－―

Current portion of lease obligations
Long-term borrowings (excluding
current portion of long-termborrowings)
Lease obligations (excluding current
portion of lease obligations)
Total(Note 1)
(Note 2)
(Note 3)

“Average interest rate” shows the weighted average interest rate on the ending balance of borrowings, etc.
The average interest rate on lease obligations is not presented because lease obligations are recorded at the amount
before deduction of the amount equivalent to interest included in total lease payments, in the consolidated balance sheets.
The amounts of long-term borrowings, and lease obligations (excluding current portion of them) to be repaid within five
years after the consolidated balance sheet date are as follows:More than 1 year,
within 2 years(Millions of yen)More than 2 years,
within 3 years(Millions of yen)More than 3 years,
within 4 years(Millions of yen)More than 4 years,
within 5 years(Millions of yen)

20,965

681

452

249

978

786

538

344

Long-term
borrowings
Lease obligations

Schedule of asset retirement obligations
Information is omitted since the amounts of asset retirement obligations at the beginning and end of the consolidated fiscal
year under review are 1% or less of the total of liabilities and net assets at the beginning and end of the consolidated fiscal
year under review.
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ファイル名:0532329172108_トクヤマ様_有報_二校（クリーン）_20210730.docx(2) Others
Quarterly information for the consolidated fiscal year ended March 31, 2021
Accumulated period

1Q

Net sales (Millions of yen)

2Q
70,624

143,289

220,923

302,407

6,351

12,117

21,67530,959

5,205

9,994

19,31824,53474.94

143.90278.14351.11

Profit before income taxes(Millions of yen)
Profit attributable to owners ofparent (Millions of yen)
Earnings per share (yen)Accumulated period

Current consolidated
fiscal year

3Q

1Q

Earnings per share (yen)

2Q
74.94

Current consolidated
fiscal year

3Q
68.95

134.2573.32(Note) The Company records shares held in the executive compensation BIP (Board Incentive Plan) trust as treasury shares. In
addition, said shares are included in treasury shares deducted when calculating the average number of shares for the fiscal year
based on calculations of earnings per share.

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