Summary of Consolidated Financial Statements for the Third Quarter Fiscal 2015 (JPGAAP)
January 29, 2016
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL http://www.tokuyama.co.jp/eng/)
Local Code :4043
Representative:
Hiroshi Yokota, President and Representative Director
Contact:
Taro Kobayashi, General Manager, Corporate Communications & Investor Relations Dept.
+81-3-6205-4832
Scheduled date for the filing of the quarterly consolidated financial statements : February 12, 2016
Scheduled date of dividends payout :Preparation of supplementary quarterly explanatory materials: Yes
Quarterly business results IR briefing to be held:
Yes (for institutional investors and analysts)

1. Consolidated results for fiscal third quarter ended Dec. 31, 2015 (Apr. 1, 2015 – Dec. 31, 2015)(1) Performance

Note: All amounts are rounded down to the nearest million yen.
Net sales
Year-on(millions ofyear change
yen)
[%]

Operating income
Year-on(millions ofyear change
yen)
[%]

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

Third Quarter Fiscal 2015
226,658
2.1
12,940(18.4)
9,386(15.1)
Third Quarter Fiscal 2014
222,029
6.8
15,86726.9
11,057
12.4(Note) Comprehensive income: 3rd Q FY15: (118,527) million yen [-%] 3rd Q FY14: (73,623) million yen [-%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Third Quarter Fiscal 2015
Third Quarter Fiscal 2014

(115,806)(78,878)-

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

(332.91)(226.73)-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

Dec. 31, 2015
Mar. 31, 2015

412,242554,527
Dec. 31, 2015:(Reference) Shareholders' equity:

51,856
169,445
43,310 million yen

10.5
124.5129.3
467.36
Mar. 31, 2015: 162,577 million yen

2. Dividends（Period）

1st quarter(yen)

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

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

-

0.00

-

0.00

(yen)

-

Total

(yen)

(yen)

0.00

0.00

0.00

0.00

(Note) Revision of the latest dividends forecast: No

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

[%]

(millions of
yen)

[%]

(millions of
yen)

[%]

(millions ofyen)

Fiscal 2015
306,000
1.3
20,0002.4
15,000 16.1 (103,000)(Note) Revision of the latest consolidated performance forecast: Yes

[%]

－

(yen)

(296.10)*The Company announced the release, “Notice concerning the Posting of an Extraordinary Loss, Revision of
Performance Forecasts, and the Return of Executive Compensation,” on Jan. 29, 2016.
-1-

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2015 – Dec. 31, 2015): No
Addition to the scope of consolidation: Reduction from the scope of consolidation: (Note) This item means changes in significant subsidiaries with changes in the scope of consolidation
during this period (Apr. 1, 2015 – Dec. 31, 2015).
(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes of accounting policies by revision of accounting standards:
Yes
ii. Changes of accounting policies other than the above:Noiii. Changes in accounting estimates:
No
iv. Retrospective restatements:
No(4) Number of shares issued (in common stock)i.

Number of shares issued at end of period(including treasury stock):ii.

Number of treasury stock at end of period:iii. Average number of shares over period:

Third Quarter

Fiscal 2015:
Third Quarter

Fiscal 2015:
Third Quarter

Fiscal 2015:

349,671,876
1,825,977
347,856,264

Fiscal 2014: 349,671,876
Fiscal 2014:
Third Quarter

Fiscal 2014:

1,805,814
347,899,311(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures inline with the Financial Instruments and Exchange Act. At the point of disclosure of this summary of quarterly
consolidated financial statements, the quarterly consolidated financial statements review procedures in linewith the Financial Instruments and Exchange Act are underway.

(Note) Cautions pertaining to appropriate use of performance forecast and other particular items
The performance forecast and other forward-looking statements contained in this material have been
prepared on the basis of information available at this point and certain assumptions which are judged to
be rational, and may be substantially different from the actual performance because of various factors that
may arise from now on.

-2-

Contents for Accompanying Materials
1. Qualitative information on consolidated results for this quarter…………………

P. 2(1) Explanation concerning business results…………………

P. 2(2) Explanation concerning financial position…………………

P. 6…………………

P. 7

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

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

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

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

P. 11(4) Segment Information…………………

P. 12(3) Explanation concerning information related to future
prediction such as consolidated performance forecast-1-1. Qualitative information on consolidated results for this quarter(1) Explanation concerning business results
Consolidated results for the third quarter fiscal 2015 (accumulated figures, April 1, 2015 December 31, 2015) are summarized as follows:(Unit: Millions of yen)
Net sales

Operating income

Ordinary income

Profit (loss)
attributable toowners of parent

Third Quarter Fiscal 2015

226,658

12,9409,386(115,806)

Third Quarter Fiscal 2014

222,029

15,867

11,057(78,878)

2.1(18.4)(15.1)－

Rate of change (%)

Net sales
Consolidated net sales increased 2.1%, or ¥4,628 million compared with the corresponding
period of the previous year, to ¥226,658 million. Despite weaker selling prices of petroleum
chemicals on the back of a downturn in domestic naphtha prices, this was largely attributable tothe upswing in sales volumes of soda ash and calcium chloride as well as solar-grade
polycrystalline silicon.
Cost of sales
Cost of sales increased 4.3%, or ¥6,847 million compared with the corresponding period of theprevious year, to ¥166,240 million. Despite a downturn in raw material costs as a result of thedrop in domestic naphtha prices, this was due mainly to the increased burden of depreciation
expenses at Tokuyama Malaysia Sdn. Bhd.
SG&A expenses
SG&A expenses increased 1.5%, or ¥707 million compared with the corresponding period of
the previous year, to ¥47,476 million. Despite our efforts to reduce Companywide expenses,
this increase primarily reflected the increase in distribution costs associated with the increase insales volumes of such products as soda ash and calcium chloride.
Operating income
Operating income decreased 18.4%, or ¥2,926 million compared with the corresponding periodof the previous year, to ¥12,940 million. Despite profitability improvement of petroleum
chemicals impacted by the drop in domestic naphtha prices and the weaker yen, this was largely
attributable to the increased burden of depreciation expenses at Tokuyama Malaysia Sdn. Bhd.
-2-

Non-operating income/expenses, Ordinary income
Non-operating income/expenses improved ¥1,254 million compared with the corresponding
period of the previous year, due chiefly to a change from foreign exchange losses recorded in thecorresponding period of the previous year to foreign exchange gains.
As a result of the above, ordinary income decreased 15.1%, or ¥1,671 million compared with thecorresponding period of the previous year, to ¥9,386 million.
Extraordinary income/losses, Loss before income taxes, Loss, Loss attributable toowners of parent
Extraordinary income/losses deteriorated by ¥28,386 million compared with the corresponding
period of the previous year. This was largely attributable to the posting of an impairment loss on
the polycrystalline silicon manufacturing facilities at Tokuyama Malaysia Sdn. Bhd.
As a result of the above, loss before income taxes was ¥107,221 million, which deteriorated by¥30,058 million compared with the corresponding period of the previous year.
After deducting income taxes calculated in an appropriate way, the Company recorded a loss of¥115,176 million, which deteriorated by ¥36,046 million compared with the corresponding
period of the previous year.
Loss attributable to owners of parent was ¥115,806 million, which deteriorated by ¥36,928
million compared with the corresponding period of the previous year.

-3-

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

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

43,33340,565

255,871(29,213)226,658

60,396

43,83638,305249,123(27,093)

222,029

7.6

(1.1)

5.9

2.7

-

2.1

Reportable segment

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

Chemicals

Specialty
Products

Cement66,12240,85664,993

68,10538,478(2.9)

6.2Life &
Amenity

Operating income (loss)(Unit: Millions of yen)

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

4,986

4,065

15,022(2,081)

12,940

3,530

3,659

4,404

19,040(3,173)

15,867

17.0

36.3

(7.7)

(21.1)-(18.4)

Reportable segment

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

Chemicals

Specialty
Products

Cement5,623(3,784)

4,131

3,800

3,645

47.9

-

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

Chemicals
Sales of caustic soda were down compared with the corresponding period of the previous year.
While domestic sales volumes were steady, this decrease was attributable to weak trends in selling
prices.
With regard to vinyl chloride monomer (VCM), profitability improved on the back of a drop in
raw material costs due to the downturn in domestic naphtha prices.
Sales of polyvinyl chloride (PVC) declined compared with the corresponding period of theprevious year. Although housing starts were on a recovery track, this was due to the decline insales volumes owning mainly to continued inventory adjustments with respect to the supply
chain.
With regard to soda ash and calcium chloride, sales increased compared with the corresponding
period of previous year. This reflected the startup of operations by Tokuyama & Central Soda
Inc. in October 2014.
As a result of the above, segment net sales decreased 2.9% compared with the corresponding
period of the previous year, to ¥66,122 million, while operating income increased 47.9% to¥5,623 million. The segment reported higher earnings on lower sales.
-4-Specialty Products
Sales ofsemiconductor-grade polycrystalline silicon were down compared with thecorresponding period of previous year. This decline was due to the downturn in sales volumes on
the back of such factors as inventory adjustments with respect to the supply chain of
semiconductor-related products.
While sales of solar-grade polycrystalline silicon increased on the back of higher sales volumes,reflecting the start of sales and marketing by Tokuyama Malaysia Sdn. Bhd. in October 2014,
earnings deteriorated due to such factors as the increased burden of depreciation expenses.
Sales of fumed silica increased compared with the corresponding period of previous year due to
steady sales of such applications as a polishing material for semiconductors.
As a result of the above, the segment reported a loss on higher sales. Segment net sales increased
6.2% compared with the corresponding period of the previous year, to ¥40,856 million.
However, this segment incurred an operating loss of ¥3,784 million during the period underreview.

CementIn the cement business, sales declined compared with the corresponding period of the previous
year, as a result of decreased sales volumes. This decrease reflected sluggish trends in both public
and private-sector demand impacted by such factors as the decrease in public works and delays inconstruction attributable to unseasonably bad weather in Japan.
In the recycling and environment-related business, the Company accepted a higher volume ofwaste including construction waste soil compared with the corresponding period of the previous
year. As a result of this, sales increased from the corresponding period of the previous year.
With regard to consolidated subsidiaries, sales increased compared with the corresponding periodof the previous year, because sales volumes of such products as ready mixed concrete forlarge-scale projects increased in certain areas.
As a result of the above, segment net sales increased 7.6% compared with the corresponding
period of the previous year, to ¥64,993 million and operating income increased 17.0% to ¥4,131
million. The segment reported higher earnings on higher sales.

Life & Amenity
Sales of active pharmaceutical ingredients decreased compared with the corresponding period of
the previous year, owing to the drop in sales volumes of products used for genericpharmaceuticals.
With regard to plastic lens-related materials, sales volumes of photochromic dye materials for-5-eyeglass lenses increased. As a result of this, sales increased compared with the corresponding
period of the previous year.
With regard to microporous film, sales volumes of such applications as sanitary articles including
disposable diapers increased. As a result of this, sales increased compared with the corresponding
period of the previous year.
With regard to polyolefin film, sales declined compared with the corresponding period of theprevious year. Despite firm trends in sales mainly for application in packaging materials for goods
sold at convenience stores, this decrease was the result of weak trends in selling prices on theback of the decline in domestic naphtha prices.
With regard to dental materials and equipment, sales increased compared with the corresponding
period of the previous year, due to increased sales volumes of new products and products foroverseas markets.
With regard to medical diagnosis systems, sales were up compared with the corresponding periodof the previous year. This was due to the upswing in large-scale orders in Japan for blood testingproducts.
As a result of the above, segment net sales decreased 1.1% compared with the corresponding
period of the previous year, to ¥43,333 million, while operating income increased 36.3% to¥4,986 million. The segment reported higher earnings on lower sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of December 31, 2015, total assets amounted to ¥412,242 million, a decrease of ¥142,285
million compared with those as of March 31, 2015.
This decrease largely reflected the decline in property, plant and equipment resulting from theposting of a loss on the impairment of polycrystalline silicon manufacturing facilities at
Tokuyama Malaysia Sdn. Bhd.
Total liabilities amounted to ¥360,385 million, down ¥24,696 million compared with those as ofMarch 31, 2015.
This largely reflected the downturn in the balances of long-term loans payable and current
portion of long-term loans payable, bonds payable and current portion of bonds, and allowance
for loss on purchase agreements of ¥18,206 million, ¥5,000 million, and ¥3,554 million,
respectively.
Net assets totaled ¥51,856 million, a decrease of ¥117,588 million compared with those as ofMarch 31, 2015.
This was largely attributable to the decrease in retained earnings resulting from the posting of the-6-

impairment loss.
As a result of the above, although Tokuyama may infringe financial covenants of certain loan
agreements it has with various financial institutions at the end of the fiscal year under review, theCompany has taken steps to approach the financial institutions and to request that the Company
be exempted from certain loan agreement financial covenants, obtain approval to continuoustransactions, and avoid possible infringements.
Tokuyama has also taken steps to confirm that it has secured ample cash-in-hand to fund theCompany’s working capital needs and debt repayments as well as the ability to procure funds on astable basis.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Based on the current performance trend, the Company has revised the performance forecast,announced on October 30, 2015. For further details, please see the Company’s news release,“Notice concerning the Posting of an Extraordinary Loss, Revision of Performance Forecasts,
and the Return of Executive Compensation,” dated January 29, 2016.
The performance forecast has been prepared on the basis of information available at this pointand certain assumptions which are judged to be rational, and may be substantially different fromthe actual performance because of various factors that may arise from now on.

-7-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen
3/31/201512/31/2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables and investment assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for investment loss
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-8-61,364
69,37130
55,053
15,456
11,60618,026
4,772
8,396
(103)
243,975

38,21369,54355
75,50016,998
10,112
17,469
3,891
9,389
(147)
241,026

137,347(74,090)
63,257546,388(401,461)
144,927
23,261(20,974)
2,286
33,149
2,135
(936)
1,199
8,511
253,331103,990(75,157)
28,832
460,120(409,314)
50,80622,706(21,014)
1,691
32,694
2,215
(981)
1,233
7,545
122,805

5,097
44
4,641
9,784

4,127
40
3,062
7,229

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

24,010
3,144
639
9,211
4,471
(22)
(275)
41,180171,216
412,242Millions of yen
3/31/201512/31/2015
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Commercial papers
Current portion of long-term loans payable
Current portion of bonds
Lease obligations
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for repairs
Provision for product warranties
Provision for loss on compensation for damage
Provision for loss on purchase contract
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for directors' retirement benefits
Provision for repairs
Allowance for loss on compensation for building materials
Provision for environmental measures
Provision for loss on purchase contract
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-9-40,567
12,212
3,000
25,110
5,000
340
1,318
－
1,911
1,284
132
50
3,183
23,186117,298

40,3509,808
4,000
18,893
10,000
347
6,251
3
1,191
1,809
44
－
2,759
25,239120,699

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

35,000179,562
986
4,409
213
3,421
417
90
3,119
1,225
5
11,235
239,686
360,385

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

53,45857,541(76,523)(1,438)33,038

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

3,565
181
3,288
3,236
10,271
8,545
51,856412,242(2) Consolidated Quarterly Statements of Income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cost of idle operations
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchase
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
State subsidy
Reversal of provision for loss on purchase contract
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on disaster
Loss on reduction of non-current assets
Loss on disposal of non-current assets
Loss on sales of shares of subsidiaries and associates
Provision for loss on purchase contract
Loss on purchase contract
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent-10-

Millions of yen
Q3 FY2014
Q3 FY2015
222,029
226,658
159,393
166,240
62,63660,41727,545
19,223
46,76815,867

28,772
18,70347,476
12,940

85
624
584
－
1,116
2,411

105
448
593
414
1,083
2,646

3,533
516
3,171
7,221
11,057

3,611
826
1,762
6,201
9,386

50
5
－
20
－
－
－
76

4,066
－
3,318
－
25
1,051
16
8,477

－
75,9424
2294
8
10,881567
594
88,297(77,163)
1,967(79,130)(252)(78,878)

71
124,600
5
26
324
－
－
－
56
125,085(107,221)
7,955(115,176)
629(115,806)

(3) Consolidated Quarterly Statements of Comprehensive Income

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of the Parent
Non-controlling interests-11-

Millions of yen
Q3 FY2014
Q3 FY2015(79,130)(115,176)
3,912
(420)
1,864
86
63
5,507
(73,623)(2,258)
(150)
(787)
(3)
(151)
(3,350)(118,527)(73,414)(208)(119,130)603

(4) Segment information
Third Quarter Fiscal 2014 (accumulated figures, April 1, 2014 – December 31, 2014)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement67,487
618
68,1053,800

29,801
8,676
38,4783,645

60,31779
60,3963,530Life &
Amenity

42,566
1,270
43,836
3,659

Others*1

Total

21,856
16,44938,305
4,404

222,029
27,093249,123
19,040Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(27,093)(27,093)(3,173)222,029
222,029
15,867*1 The “Others” segment comprises businesses other than those of the reportable segments. Concretely, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment income adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by making an adjustment to the sum total of the reportable segments’ income and the “Others”
segment’s income.

2. Information on impairment loss of non-current assets or goodwill by reportable segment
There were no material facts to be reported.

-12-Third Quarter Fiscal 2015 (accumulated figures, April 1, 2015– December 31, 2015)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement65,592529
66,122
5,623

30,25910,59640,856(3,784)64,879114
64,993
4,131Life &
Amenity

41,8191,514
43,333
4,986

Others*1

Total

24,107
16,45740,565
4,065

226,658
29,213
255,871
15,022Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(29,213)(29,213)(2,081)

226,658
226,658
12,940*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment income (loss) adjustment amount consists mainly of basic R&D expenses that are notallocable to a specific reportable segment.
*3 With regard to segment income (loss), operating income in the quarterly consolidated statement of income
has been calculated by making an adjustment to the sum total of the reportable segments’ income and the“Others” segment’s income.

2. Information on changes in reportable segments(Adoption of the accounting standard for business combination)
Effective from the first quarter of fiscal 2015, the Company adopted the “Accounting Standard for Business
Combination,” and has changed its accounting method. Under the new accounting policy, the difference
arising from changes in the Company’s ownership interests in its controlled subsidiaries was recorded ascapital surplus, and at the same time, the expenses related to the acquisitions are recorded as expenses in the
consolidated fiscal year in which they arise. Furthermore, regarding a business combination that is
implemented after the beginning of the first quarter of fiscal 2015, in line with the newly-adopted accounting
standard, the reallocation of acquisition costs resulting from the settlement of a provisional accounting
treatment is reflected in the quarterly consolidated financial statements for the consolidated quarterly fiscal
period during which the business combination occurs. The effect of these changes on segment information was
immaterial.
3. Information on impairment loss of non-current assets or goodwill by reportable segment(Significant impairment loss for non-current assets)
In the Specialty Products segment, the Company recorded impairment loss of ¥123,875 million during thethird quarter of fiscal 2015 (April 1, 2015 to December 31, 2015).
During the third quarter of fiscal 2015 (April 1, 2015 to December 31, 2015), impairment losses that were notallocated to the reportable segments amounted to ¥708 million.

-13-