Summary of Consolidated Financial Statements for the First Quarter Fiscal 2022 (JPGAAP)

July 27, 2022
Tokuyama Corporation
Stock exchange listings:
Tokyo
Local Code :4043(URL https://www.tokuyama.co.jp/eng/)
Representative:
Hiroshi Yokota, President and Representative Director
Contact:
Tetsuya Nakano, General Manager, Corporate Communications & Investor Relations Dept.
+81-3-5207-2552
Scheduled date of dividends payout :Preparation of supplementary quarterly explanatory materials: Yes
Quarterly business results IR briefing to be held:
Yes (for institutional investors and analysts)

1. Consolidated results for fiscal first quarter ended Jun. 30, 2022 (Apr. 1, 2022 – Jun. 30, 2022)(1) Performance

Note: All amounts are rounded down to the nearest million yen.

Net sales
Year-on(millions ofyear change
yen)
[%]

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

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

First Quarter Fiscal 2022
84,01724.5
5,108(31.9)
7,109(10.1)First Quarter Fiscal 2021
67,497
(4.4)
7,496
12.7
7,904
18.4
(Note) Comprehensive income: 1st Q FY22: 5,670 million yen [20.0%] 1st Q FY21: 4,724 million yen [(26.1)%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]First Quarter Fiscal 2022
First Quarter Fiscal 2021

4,482
4,941

(9.3)
(5.1)

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

62.29
68.65

-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

June 30, 2022
March 31, 2022

455,661433,210(Reference) Shareholders' equity:

1st quarter

Fiscal 2021, ended
Mar 31, 2022
Fiscal 2022, ending
Mar 31, 2023
Fiscal 2022
（Forecast）

49.9
51.8

Jun. 30, 2022: 227,507 million yen

2. Dividends（Period）

235,725
232,917(yen)-

Mar. 31, 2022: 224,506 million yen

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

(yen)

3,161.97
3,120.25

Total

(yen)

(yen)

35.00

-

35.00

70.00

35.00

-

35.00

70.00

-

(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for fiscal 2022 (April 1, 2022 - March 31, 2023)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating profit Ordinary profit Profit
owners of parent
per share

Fiscal 2022

(millions ofyen)

360,000[%]

22.5(millions ofyen)

24,500[%](0.2)(millions ofyen)(Note) Revision of the latest consolidated performance forecast: No

1

25,000[%](3.3)(millions ofyen)

17,500[%](37.5)(yen)

243.22

*Notes(1) Changes in significant subsidiaries during this period: No(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (4) Notes on
Quarterly Consolidated Financial Statements (Application of accounting methods specific to the preparation of
the quarterly consolidated financial statements)” on page 11 of the Accompanying Materials to this Summaryof Quarterly Consolidated Financial Statement.
(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes in accounting policy by revision of accounting standards:
ii. Changes in accounting policy other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:(4) Number of shares issued (in common stock)
Number of shares issued at end of period
1st Quarteri.
(including treasury stock):
Fiscal 2022:
1st Quarterii. Number of treasury stock at end of period:
Fiscal 2022:
1st Quarteriii. Average number of shares over period:
Fiscal 2022:

No
No
No
No

72,088,327

Fiscal 2021:

72,088,327

137,090

Fiscal 2021:

136,954

71,951,164

1st Quarter
Fiscal 2021:

71,985,131(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures in linewith the Financial Instruments and Exchange Act. At the point of disclosure of this summary of quarterly
consolidated financial statements, the quarterly consolidated financial statements review procedures in line with the
Financial Instruments and Exchange Act are underway.
(Note) Cautions pertaining to appropriate use of performance forecast and other particular items(Cautions related to Forward-looking statement)
The performance forecast and other forward-looking statements contained in this material have been prepared on
the basis of information available at this point and certain assumptions which are judged to be rational, and may
be substantially different from the actual performance because of various factors that may arise from now on.
(Access to supplementary explanations on business results)
The Company also provides supplementary materials “Presentation for IR Meeting” through TDnet at the same
date.

2

Contents for Accompanying Materials…………………

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

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

P. 6…………………

P. 6

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

P. 7(1) Quarterly Consolidated Balance Sheets…………………

P. 7(2) Quarterly Consolidated Statements of Income…………………

P. 9(3) Quarterly Consolidated Statements of Comprehensive Income…………………

P. 10(4) Notes on Quarterly Consolidated Financial Statements…………………

P. 11(5) Segment Information…………………

P. 12

1. Qualitative information on consolidated results for this quarter(3) Explanation concerning information related to future
prediction such as consolidated performance forecast

11. Qualitative information on consolidated results for this quarter(1) Explanation concerning business results
Consolidated results for the first quarter fiscal 2022 (April 1, 2022 – June 30, 2022) aresummarized as follows:(Unit: Millions of yen)
OperatingprofitNet sales

Ordinary profit

Profitattributable toowners ofparentFirst Quarter Fiscal 2022

84,017

5,108

7,109

4,482

First Quarter Fiscal 2021

67,497

7,496

7,904

4,941

24.5

(31.9)(10.1)(9.3)

Rate of change (%)

Net sales
Consolidated net sales increased 24.5%, or ¥ 16,520 million compared with the corresponding
period of the previous year, to ¥ 84,017 million owing to higher sales prices of petrochemical
products, cement, and semiconductor-related products.
Cost of sales
Cost of sales increased 38.6%, or ¥ 16,696 million compared with the corresponding period of
the previous year, to ¥ 59,900 million. This was due mainly to a upturn in raw material and fuelcosts.
SG&A expenses
SG&A expenses increased 13.2%, or ¥ 2,211 million compared with the corresponding period of
the previous year, to ¥ 19,008 million mainly due to increases in logistics costs and R&D
expenses.
Operating profit
Operating profit decreased 31.9%, or ¥ 2,388 million compared with the corresponding periodof the previous consolidated fiscal year, to ¥ 5,108 million. Despite upturn in export prices of
caustic soda, this decrease in operating profit was mainly due to higher logistics costs, and raw
material and fuel costs.

2

Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥ 1,593 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, ordinary profit decreased 10.1 %, or ¥ 794 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 7,109 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved by ¥ 102 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, profit before income taxes decreased 8.9%, or ¥ 692 million comparedwith the corresponding period of the previous consolidated fiscal year, to ¥ 7,070 million.
Profit after deducting income taxes calculated in an appropriate way decreased 10.8%, or ¥ 536
million compared with the corresponding period of the previous consolidated fiscal year, to¥ 4,450 million.
Profit attributable to owners of parent decreased 9.3%, or ¥ 459 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 4,482 million.

3

(Operating results by segment)
First Quarter
Fiscal 2022

First Quarter
Fiscal 2021
Operating
Net sales
Profit(loss)Net sales

Operating
Profit(loss)

Chemicals

31,6494,252

24,046

Cement14,506(325)

Electronic
Materials

20,479Life Science(Unit: Millions of yen)
Rate of change(%)
Net sales

Operatingprofit

4,068

31.6

4.5

12,214

562

18.8

-

1,393

16,570

2,132

23.6

(34.6)

8,364

1,380

7,496

1,134

11.6

21.7

Eco Business

2,551

(182)

2,218

(194)

15.0

-

Others

9,690

522

7,874

875

23.1

(40.4)

Total

87,242

7,041

70,421

8,579

23.9

(17.9)

Adjustment(3,224)(1,932)(2,923)(1,082)--

Figures in quarterly
consolidated profit
84,017
5,108
67,497
7,496
24.5
statement(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

(31.9)

Chemicals
Despite an increase in raw material and fuel costs, earnings from caustic soda increased due tothe upturn in export prices.
Downturn in vinyl chloride monomer and vinyl chloride resin earnings was due to rising
manufacturing costs as a result of higher raw material and fuel costs.
As a result of the above, segment net sales increased 31.6% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 31,649 million and operating profit increased
4.5 % to ¥ 4,252 million. The segment reported higher earnings on higher sales.
CementCement earnings deteriorated despite shipments of being in line with the corresponding periodof the previous year and revision of sales prices. This downturn largely reflected manufacturingcosts rising as a result of higher raw material costs.
As a result of the above, segment net sales increased 18.8% compared with the corresponding
period of the previous year, to ¥ 14,506 million and operating loss amounted to ¥ 325 million(Posted operating profit of ¥ 562 million in the corresponding period of the previous year).

4Electronic Materials
Earnings from semiconductor-grade polycrystalline silicon decreased despite firm sales due to the
spread of 5G and the expansion of data centers. This downturn largely reflected higher raw
material and fuel costs.
Despite robust sales, IC Chemicals earnings decreased since raw material prices rose.
Despite an upswing in raw material costs, earnings from fumed silica increased owing to higher
export prices.
Thermal management materials earnings were in line with the corresponding period of theprevious year. Although sales volume was solid, this largely reflected higher R&D expenses at theCenter for Commercialization of Advanced Technology.
As a result of the above, segment net sales increased 23.6% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 20,479 million and operating profit
decreased 34.6% to ¥ 1,393 million. The segment reported lower earnings on higher sales.
Life Science
Dental materials earnings grew thanks to an increase in shipments to overseas.
APIs and intermediates earnings increased owing mainly to a robust sales volume of genericpharmaceuticals.
As a result of the above, segment net sales increased 11.6% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 8,364 million and operating profit increased
21.7% to ¥ 1,380 million. The segment reported higher earnings on higher sales.
Eco BusinessTo make the environment segment one of our business pillars of the future, we consolidated theenvironment-related businesses scattered within the Group and aims for new businessdevelopment.
Segment net sales increased 15.0% compared with the corresponding period of the previous year,
to ¥ 2,551 million and operating loss amounted to ¥ 182 million (posted operating loss of ¥ 194
million in the corresponding period of the previous year).

5(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2022, total assets amounted to ¥ 455,661 million, an increase of ¥ 22,450 million
compared with those as of March 31, 2022.
This increase primarily reflects the increase of cash and deposits, raw materials and supplies,
property, plant and equipment, merchandise and finished goods, and work in process of ¥ 7,893
million, ¥ 6,119 million, ¥ 3,276 million, ¥ 3,015 million and ¥ 1,602 million respectively.
Total liabilities amounted to ¥ 219,935 million, up ¥ 19,642 million compared with those as ofMarch 31, 2022.
The principal factor is the increase in notes and accounts payable – trade, long-term loans
borrowings and current portion of long-term loans borrowings, and other current liabilities of¥ 15,740 million, ¥ 2,735 million, and ¥ 2,190 million respectively, despite decrease in provision
for bonuses of ¥ 1,867 million.
Net assets totaled ¥ 235,725 million, an increase of ¥2,808 million compared with those as ofMarch 31, 2022.
This mainly reflected the increase of ¥ 1,958 million in retained earnings primarily due to posting
profit attributable, and the increase of ¥ 1,968 in foreign currency translation adjustment.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Notwithstanding anxieties toward raw material and fuel prices, and other factors, Tokuyama’s
business performance is currently trending within anticipated parameters. Therefore, theCompany has not revised the performance forecasts, announced on April 28, 2022. Details will
be disclosed in a timely manner should the need to revise performance forecasts.
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.

6

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
6/30/2022

3/31/2022
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Lease receivables
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

83,116
7,212
70,98911
19,194
14,264
22,265
6,968(72)
223,950

91,0107,12970,756
11
22,20915,86628,385
7,316(73)
242,612108,926(78,815)
30,111
475,226(424,410)
50,81523,356(20,368)
2,987
32,112
8,682(3,302)
5,379
18,195
139,602

111,063(79,373)
31,690480,704(428,079)
52,62524,046(20,675)
3,370
32,165
8,969(3,579)5,390
17,636
142,878

68
25
2,588
2,682

63
20
2,768
2,853

28,255
2,094
21,111
10,482
5,077(46)
66,974
209,259433,210

27,605
2,095
21,675
10,9655,019(45)
67,316
213,048455,6613/31/2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Provision for repairs
Provision for decommissioning and removal
Provision for product warranties
Provision for loss on compensation for damage
Provision for environmental measures
Provision for restructuring
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for retirement benefits for directors (and other officers)
Provision for share awards
Provision for repairs
Provision for decommissioning and removal
Allowance for loss on compensation for building materials
Provision for environmental measures
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

8(Millions of yen)
6/30/2022

49,055463
20,823
1,225
2,157
3,462
5,409
908
73
108
14
47
18,587102,337

64,795610
12,148
1,195
2,377
1,594
5,597
599
31
109
4
－
20,778109,841

15,00067,951
3,754
248
194
33
1,181
874
88
118
2,081
57
6,370
97,954200,292

15,00079,362
3,789
244
178
45
1,891
874
80
118
2,066
70
6,371
110,093219,935

10,00023,453
180,534(414)
213,573

10,00023,451
182,493(413)
215,531

3,587
(8)
4,849
2,505
10,932
8,411
232,917433,210

2,716
(5)
6,817
2,448
11,976
8,218
235,725455,661(2) Quarterly Consolidated Statements of Income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Outsourcing service income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Fiduciary obligation expenses
Comprehensive welfare group term insurance expenses
Cost of idle operations
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Subsidy income
Gain on forgiveness of debts
Gain on insurance claims
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on disaster
Loss on tax purpose reduction entry of non-current assets
Loss on disposal of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

9

Q1 FY2021 YTD
67,497
43,20324,293(Millions of yen)
Q1 FY2022 YTD
84,01759,90024,116

10,745
6,051
16,796
7,496

11,981
7,026
19,008
5,108

15
281
303
74
156
1,124
1,956

16
356
583
1,210
481
834
3,484

353
146
182
118
749
1,549
7,904

357
402
183
151
387
1,483
7,109

1
76
－
－
78

35
40
19
1
97

－
31
67
120
218
7,763
2,777
4,986
44
4,941

8
3
26
97
135
7,070
2,620
4,450
(31)
4,482

(3) Quarterly Consolidated Statements of Comprehensive Income
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

10

Q1 FY2021 YTD
4,986(Millions of yen)
Q1 FY2022 YTD
4,450

(584)
4
245
7

(869)
3
2,040
(57)

64

102

(261)
4,724

1,220
5,670

4,685
39

5,526
144

(4) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Major Changes in Shareholders’ Equity)
Not applicable.
(Changes in significant subsidiaries during this period)
Not applicable.
(Application of accounting methods specific to the preparation of the quarterly
consolidated financial statements)(Calculation of Tax Expense)
The Company rationally estimated the effective tax rate after the application of accounting policy
for deferred tax, which was applied to the profit/loss before income tax for the consolidated
fiscal year under review including the first quarter consolidated accounting period for the
consolidated fiscal year ending March 31, 2023, and calculated the tax expense by multiplying theestimated effective tax rate to the profit/loss before income tax. However, if the application ofsaid estimated effective tax rate reduces the rationality of the calculation of tax expense, theCompany applies the effective statutory tax rate.

(Additional Information)(Transition from the consolidated taxation system to the group tax sharing system)
Tokuyama and certain domestic consolidated subsidiaries transitioned from the consolidated
taxation system to the group tax sharing system effective from the first quarter of the fiscal year
ending March 31, 2023. In line with this transition, accounting treatment and disclosure ofcorporate and local income tax as well as tax effect accounting is in accordance with the Practical
Solution on the Accounting and Disclosure Under the Group Tax Sharing System (PITF No. 42,
issued on August 12, 2021). Based on the provisions outlined in Paragraph 32 (1) of PITF No.
42, the Company has deemed that there is no effect of the change in accounting policy due tothe application of PITF No. 42.

11

(5) Segment information
First Quarter Fiscal 2021 (April 1, 2021 –June 30, 2021)
1. Information on net sales as well as profit and loss by reportable segment(Millions of yen)
Operating
Profit(loss)

Sales
Sales to customers

Inter-segment
sales/transfer

Total

Chemicals

23,95590

24,046

4,068

Cement12,031

182

12,214562

Electronic
Materials

16,377

192

16,5702,132Life Science

7,491

5

7,496

1,134

Eco Business

2,217

0

2,218

(194)

Others*1

5,423

2,451

7,874

875

Total

67,4972,923

70,421

8,579-(2,923)(2,923)(1,082)

67,497-67,497

7,496

Adjustment*2
Figures in quarterly
consolidated profit
statement*3*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment profit (loss) adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment and the amount of inter-segment eliminations.
*3 With regard to segment profit (loss), operating profit in the quarterly consolidated statement of profit has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others” segment’s
profit.
*4 Net sales are not presented separately from earnings derived from contracts with customers and other earnings
because the amount of other earnings is insignificant.

2. Information on impairment loss on fixed assets and goodwill by reported segment
Not applicable.

12First Quarter Fiscal 2022 (April 1, 2022 –June 30, 2022)
1. Information on net sales as well as profit and loss by reportable segment and a breakdown of earnings(Millions of yen)
Operating
Profit(loss)

Sales
Sales to customers

Inter-segment
sales/transfer

Total

Chemicals

31,57475

31,6494,252

Cement14,270235

14,506(325)

Electronic
Materials

20,346

133

20,4791,393Life Science

8,361

3

8,364

1,380

Eco Business

2,534

16

2,551

(182)

Others*1

6,930

2,760

9,690

522

Total

84,0173,224

87,242

7,041-(3,224)(3,224)(1,932)84,017-84,017

5,108

Adjustment*2
Figures in quarterly
consolidated profit
statement*3*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment profit (loss) adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment and the amount of inter-segment eliminations.
*3 With regard to segment profit (loss), operating profit in the quarterly consolidated statement of profit has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others” segment’s
profit.
*4 Net sales are not presented separately from earnings derived from contracts with customers and other earnings
because the amount of other earnings is insignificant.

2. Information on amortization of goodwill and unamortized balance by reportable segment
Not applicable.

13