April 28, 2023

Summary of Fiscal 2022
(The Fiscal Year ended March 31, 2023)
Tokuyama Corporation
1. Summary of performance and other corporate data (consolidated)(Unit: Billions of yen, except number of employees)

Fiscal 2022
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Basic earnings per share (Unit: yen)
Capital expenditures
Depreciation and amortization
R&D expenses
Financial income and expenses

35 1 .7
14 . 314 . 7
9. 3
13 0 .1 5
35 . 6
20 . 7
13 . 6( 0.8)

As of March
31, 2023
Interest-bearing debt
Number of employees

14 2 .4
5, 9 091

Fiscal 2021
29 3 .8
24 . 525 . 828 . 038 9 .0 933 . 319 . 7
12 . 6( 0.7)

As of March
31, 2022
10 9 .2
5, 6 65

Changes+ 57 . 9( 10 . 2)( 11 .0 )( 18 . 6)( 25 8 .6 4)+ 2. 3+ 1. 0+ 0. 9( 0. 0)Changes+ 33 . 2+ 24 4

2. Net sales and operating profit by business segment (year on year)(Unit: Billions of yen)

FY2022 Results
Operating
Net sales
profitFY2021 Results
Operating
Net sales
profitChanges
Operating
Net sales
profitChemicals

116.2

6.8

101.4

14.2

+14.7

(7.3)

Cement

58.5

(3.7)

50.3

(1.9)

+8.1

(1.8)

Electronic Materials

91.5

7.0

74.9

7.2

+16.5

(0.2)

Life Science

37.5

7.3

33.5

6.0

+4.0

+1.3

Eco Business

13.8

0

10.3

(0.4)

+3.5

+0.5

Others

47.3

2.0

36.3

3.8

+11.0

(1.8)

Total

365.1

19.6

307.0

28.9

+58.0

(9.3)

Inter-segment
eliminations andcorporate-wide
expenses(13.3)(5.3)(13.1)

(4.4)

(0.1)

(0.8)

Consolidated results

351.7

14.3

293.8

24.5

+57.9

(10.2)○ In the Chemicals segment, despite the increase in sales built on efforts to promote therevision of selling prices in Japan, profit declined owing to a variety of factors, including thedeterioration in overseas vinyl chloride market prices.
○ In the Cement segment, the Company’s loss continued to deteriorate on the back ofsuch factors as the increase in raw material and fuel costs.
○ In the Electronic Materials segment, despite the increase in sales attributable torevisions to selling prices, profit declined owing mainly to lower sales volumes of IC
chemical-related products impacted by the slowdown in semiconductor market
conditions.
○ In the Life Science segment, both sales and profit increased due to a variety of factors,
including the increase in shipments overseas of such products as dental materials.
○ In the Eco Business segment, both sales and profit increased owing to such factors as
the increase in ion exchange membrane shipments.

2

3. Net sales and operating profit by business segment (forecasts)(1) Net sales and operating profit by business segment (full year comparison)(Unit: Billions of yen)

FY2023 Forecast
Operating
Net sales
profitFY2022 Results
Operating
Net sales
profitChanges
Operating
Net sales
profitChemicals

128.0

12.5

116.2

6.8

+11.7

+5.6

Cement

69.0

6.0

58.5

(3.7)

+10.4

+9.7

Electronic &Advanced Materials

103.0

9.0

91.5

7.0

+11.4

+1.9

Life Science

40.0

7.5

37.5

7.3

+2.4

+0.1

Eco Business

8.0

0.0

13.8

0.0

(5.8)

(0.0)

Others

45.0

2.0

47.3

2.0

(2.3)

(0.0)

Total

393.0

37.0

365.1

19.6

+27.8

+17.3

Inter-segment
eliminations andcorporate-wide
expenses(13.0)(7.0)(13.3)

(5.3)

+0.3

+1.6

Consolidated results

380.0

30.0

351.7

14.3

+28.2

+15.6

(Note)Effective from the fiscal year ending March 31, 2024, the Electronic Materials Segment will berenamed the Electronic & Advanced Materials Segment. There is no impact on segment information
as a result of the change in segment name.
(Note) The depreciation method for Property, plant and equipment has been changed to the straightline method from the beginning of the fiscal year ending March 31, 2024. Forecasts for the fiscal year
ending March 31, 2024 have been prepared to reflect this change.
As a result of this change, depreciation by segment decreased ¥0.9 billion in the Chemicals segment,¥1.2 billion in the Cement segment, ¥1.0 billion in the Electronic & Advanced Materials segment, ¥0.2
billion in the Life Science, segment ¥0.3 billion in the Eco Business segment, and ¥1.6 billion in the
Others segment respectively, compared with the previous method, for a total decrease in depreciationof ¥5.4 billion.

(2) Assumptions of performance forecasts for fiscal 2023

Domestic Naphtha Price(¥/kl)
Exchange Rate (¥/$)

Fiscal 2023

Fiscal 2022

67,00076,600

130

135

3

In fiscal 2023, sales and profit are expected to increase owing to such factors as the growing
acceptance of sales price revisions in the Chemical and Cement segments, despite theoutlook of a slowdown in semiconductor market conditions.

○ In the Chemicals segment, price revisions have been taken into account.
○ In the Cement segment, price revisions have been taken into account.
○ In the Electronic & Advanced Materials segment, an increase in sales ofsemiconductor-related materials have been taken into account.
○ In the Life Science segment, an increase in sales of healthcare products has beentaken into account.
○ In the Eco Business Segment, the change in a subsidiary company has been taken into
account.

4

Summary of Consolidated Financial Statements for the Fiscal 2022 (JPGAAP)
April 28, 2023
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL https://www.tokuyama.co.jp/eng/)
Local Code :4043
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 :June 26, 2023
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 year ended Mar. 31, 2022 (Apr. 1, 2022 – Mar. 31, 2023)
Note: All amounts are rounded down to the nearest million yen.
% indicates year-on-year changes.

(1) Performance

Net sales
Fiscal 2022
Fiscal 2021

(millions of yen)351,790
293,830(Note) Comprehensive income: FY22:

Operating profit[%] (millions of yen)

19.7
(2.8)

[%]

(41.6)(20.6)

10,021 million yen [(67.8)%]

Basic earnings
per share

Diluted net
income per share(yen)

Fiscal 2022
Fiscal 2021

14,336
24,539(millions of yen)

14,78325,855[%](42.8)(16.0)(millions of yen)

9,364
28,000[%](66.6)
14.1

FY21: 31,160 million yen [2.1%]

Net income toshareholders’equity(yen)

130.15389.09Profit attributable toowners of parent

Ordinary profit

Ordinary profit to Operating profit
total assets
to net sales

[%]

[%]

4.1
13.2

－
－

[%]

3.2
6.3

(Reference) Equity in earnings of unconsolidated subsidiaries and affiliates: FY22: 1,592 million yen

4.1
8.4

FY21: 1,043 million yen(2) Financial position

Total assets
Mar 31, 2023
Mar 31, 2022
(Reference)

Shareholders’ equity
ratio

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

478,342433,210

241,602
232,917

Shareholders' equity:

FY22:

Net assets per share

[%]

(yen)

3,189.01
3,120.25

48.0
51.8
229,450 million yen

FY21: 224,506 million yen(3) Cash flows

Cash flows fromoperating activities

Cash flows frominvesting activities(millions of yen)

Fiscal 2022
Fiscal 2021

Cash flows fromfinancing activities(millions of yen)

(11,800)
25,986

Cash and cash
equivalents at the endof the year

(millions of yen)

(33,757)(33,797)(millions of yen)

30,151
5,118

67,55682,496

2. Dividends（Period）

1stquarter(yen)

Annual dividends
2nd
3rd
Yearquarter quarter
end

Total

Total
dividends paid
(Total)(Consolidated)
[%]

(yen)

(yen)

(yen)

(yen)

(millions of yen)

Dividend
payout ratio

Dividend on
net assets ratio(Consolidated)[%]

Fiscal 2021

--

35.00

--

35.00

70.00

5,045

18.0

2.4

Fiscal 2022

--

35.00

--

35.00

70.00

5,040

53.8

2.2

Fiscal 2023
（Forecast）

--

35.00

--

35.00

70.00

1

22.9

3. Consolidated performance forecast for fiscal 2023 (April 1, 2023 - March 31, 2024)(% 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 2023

(millions ofyen)

380,000[%]

8.0(millions of
yen)

[%]

30,000 109.2(millions of
yen)

[%]

30,000 102.9(millions ofyen)

22,000

[%]

134.9

(yen)

305.77(Note)The depreciation method for Property, plant and equipment has been changed to the straight-line method from the beginningof the fiscal year ending March 31, 2024. Forecasts for the fiscal year ending March 31, 2024 have been prepared to reflect thischange. For more details, please refer to “<2> Outlook for fiscal 2023 of (1) Analysis of Operating Results of 1. Analysis ofOperating Results and Financial Position ” on page 6 of the Accompanying Materials to this Summary of Financial Statement.

*Notes(1) Changes in significant subsidiaries during this period: Yes
Addition to the scope of consolidation: 1 (Company Name: STAC Co., Ltd.)
Reduction from the scope of consolidation: (Note) For more details, please refer to “(5) Notes on Consolidated Financial Statements (Changes in significant
subsidiaries during this period) of 2. Consolidated Financial Statements” on page 18 of the Accompanying
Materials to this Summary of Consolidated Financial Statement.

(2) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes in accounting policy by revision of accounting standards:
ii. Changes in accounting policy other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:

Yes
No
No
No

(Note) For more details, please refer to “(5) Notes on Consolidated Financial Statements (Changes in accounting
policy) of 2. Consolidated Financial Statements” on page 18 of the Accompanying Materials to this Summaryof Consolidated Financial Statement.

(3) 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:

Fiscal 2022:

72,088,327

Fiscal 2021:

Fiscal 2022:

137,882

Fiscal 2021:

136,954

Fiscal 2022:

71,951,091

Fiscal 2021:

71,963,931

2

72,088,327

(Reference) Summary of Non-Consolidated Operating Results
1. Non-consolidated results for fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
Note: All amounts are rounded down to the nearest million yen.
% indicates year-on-year changes.

(1) Performance

Net sales
Fiscal 2022
Fiscal 2021

(millions of yen)

260,763
215,374

Operating profit[%] (millions of yen)

21.1
19.0

Net profit per share
Fiscal 2022
Fiscal 2021

2,000
14,641

Ordinary profit[%](86.3)(34.1)(yen)[%]

1,433 (93.7)
22,6140.4(yen)

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

385,901
354,316

165,770
168,828(Reference) Shareholders' equity:

2,735 (83.9)
16,947 (26.7)(millions of yen)－－

(2) Financial position

Mar 31, 2023
Mar 31, 2022

Net profit[%]

Diluted net profit per
share

19.93
314.24

Total assets(millions of yen)

Shareholders’ equity
ratio

FY22: 165,770 million yen

Net assets per share

[%]

43.0
47.6

(yen)

2,303.96
2,346.42
FY21: 168,828 million yen(Note) This summary of consolidated financial statements is not inside the scope of audit procedure by certified
public accountants or audit corporations.
(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 besubstantially different from the actual performance because of various factors that may arise from now on.
(Access to supplementary explanations on business results)
The Company also supplementary materials “Presentation for IR Meeting” through TDnet at the same date.

3

Contents for Accompanying Materials
1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results

……………

P. 2

(2) Analysis of Financial Position

……………

P. 8

(3) Achievement of Medium-Term Management Plan

……………

P. 11

(4) Basic Policy for Profit Distribution and Dividends for Fiscal 2021 and 2022

……………

P. 11

2. Consolidated Financial Statements

……………

P. 12

(1) Consolidated Balance Sheets

……………

P. 12

(2) Consolidated Statements of Income

……………

P. 14

(3) Consolidated Statements of Comprehensive Income

……………

P. 15

(4) Consolidated Statements of Cash Flows

……………

P. 16

(5) Notes on Consolidated Financial Statements

……………

P. 18

(6) Segment Information

……………

P. 19

(7) Material Subsequent Event

……………

P. 21

1

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results<1> Operating results for the fiscal year under review[1] Overview of performance for the fiscal year under review
In the fiscal year ended March 31, 2023, economic activities throughout the global economy began
returning to normal as restrictions on people’s movements due to COVID-19 eased. In contrast,
global inflation triggered by shortages in the supply of energy as well as mineral and other resources
due to the protracted conflict in Ukraine forced countries to tighten monetary policies and stabilize
consumer prices. On the domestic front, signs of a modest recovery began to emerge in theJapanese economy as consumer spending and corporate capital investment picked up amid the startof the “with-Corona” era and the lifting of priority measures aimed at preventing the spread of
the pandemic in March 2022. While the relevant authorities maintain their monetary easing policies
to end deflation in Japan, the pace of the yen’s depreciation continues to accelerate due to the series
of interest rate hikes in the U.S. and Europe. As a result, the surge in imported product prices,
including raw materials and fuel, is placing considerable pressure on corporate earnings household
budgets. Under these circumstances, the Company has been working on the priority measures of
its Medium-Term Management Plan 2025: transform business portfolio, contribute to mitigationof global warming, and practice socially responsible management.
In terms of business performance, despite higher sales by revision of sales prices of products suchas chemicals, cement, and semiconductor-related products, earnings decreased owing to suchfactors as the increase in costs including raw material and fuel prices as well as logistics expenses
and the deterioration in market conditions.

(Unit: Millions of yen)
OperatingprofitNet sales

Ordinary profit

Profitattributable toowners ofparentFiscal 2022

351,790

14,336

14,783

9,364

Fiscal 2021

293,830

24,53925,85528,00019.7(41.6)(42.8)(66.6)

Rate of change (%)

Net sales
Consolidated net sales increased 19.7%, or ¥ 57,960 million compared with the corresponding
period of the previous year, to ¥ 351,790 million, largely reflecting progress made in passing alongelevated fuel and raw materials prices to sales prices.

2

Cost of sales
Cost of sales increased 31.5%, or ¥ 62,591 million compared with the corresponding period of
the previous year, to ¥ 261,009 million. This was due mainly to a upturn in raw material and fuelcosts.
SG&A expenses
SG&A expenses increased 7.9%, or ¥ 5,571 million compared with the corresponding period of
the previous year, to ¥ 76,444 million mainly due to increases in logistics costs and R&D expenses.
Operating profit
Operating profit decreased 41.6%, or ¥ 10,202 million compared with the corresponding periodof the previous consolidated fiscal year, to ¥ 14,336 million. This decrease in operating profit was
mainly due to higher logistics, raw material, fuel, and other costs and deterioration in overseas vinyl
chloride monomer market conditions.
Non-operating income/expenses, Ordinary profit
Non-operating income/expenses deteriorated by ¥ 869 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, ordinary profit decreased 42.8%, or ¥ 11,071 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 14,783 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses deteriorated by ¥ 2,153 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, profit before income taxes decreased 47.8%, or ¥ 13,225 million comparedwith the corresponding period of the previous consolidated fiscal year, to ¥ 14,424 million.
Profit after deducting income taxes calculated in an appropriate way decreased 66.8%, or ¥ 18,812
million compared with the corresponding period of the previous consolidated fiscal year, to¥ 9,362 million.
Profit attributable to owners of parent decreased 66.6%, or ¥ 18,636 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 9,364 million.

3[2] Operating performance by business segment(Operating results by segment)

Fiscal 2022

(Unit: Millions of yen)
Rate of change(%)

Fiscal 2021

Net sales

Operating
Profit(loss)Net sales

Operating
Profit(loss)Net sales

OperatingprofitChemicals

116,263

6,887

101,482

14,225

14.6(51.6)

Cement58,511(3,718)50,366(1,912)

16.2-

Electronic
Materials

91,5897,011

74,966

7,232

22.1

(3.1)

Life Science

37,567

7,377

33,564

6,036

11.9

22.2

Eco Business

13,842

46

10,305

(468)

34.3

-

Others47,331

2,036

36,302

3,851

30.4

(47.1)

Total

365,105

19,640307,018

28,96418.9(32.2)

Adjustment(13,314)(5,303)(13,188)(4,425)--Figures in quarterly
consolidated profit
351,790
14,336
293,830
24,53919.7
statement(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

(41.6)

Chemicals
In caustic soda, earnings rose despite higher fuel and raw materials costs. This gain reflected
progress in passing these costs onto domestic sales prices and higher export prices.
In Vinyl chloride monomer and vinyl chloride resin, earnings decreased owing to such factors as
the upswing in raw material and fuel prices, which resulted in an increase in manufacturing costs,
and deterioration in overseas vinyl chloride monomer market prices.
Profit from soda ash and calcium chloride increased. Despite higher raw material and fuel costs,
this was mainly due to successful efforts aimed at passing on the upswing in cost of sales to selling
prices in Japan.
As a result of the above, segment net sales increased 14.6% compared with the previous
consolidated fiscal year, to ¥ 116,263 million and operating profit decreased 51.6% to ¥ 6,887
million. The segment reported lower earnings on higher sales.
CementIn cement, earnings deteriorated despite domestic shipments of being in line with thecorresponding period of the previous year and revision of sales prices and other factors. This
downturn largely reflected manufacturing costs rising as a result of higher raw material costs.
4

As a result of the above, segment net sales increased 16.2% compared with the previous
consolidated fiscal year, to ¥ 58,511 million and operating loss amounted to ¥ 3,718 million (Posted
operating loss of ¥ 1,912 million in the previous consolidated fiscal year).
Electronic Materials
In semiconductor-grade polycrystalline silicon, despite the upswing in manufacturing costs
associated with such factors as the increase in raw material and fuel prices, earnings grew owing toa variety of factors including successful efforts to promote the revision of sales prices.
Profit from IC chemicals declined. Despite progress in the revision of selling prices, this largely
reflected the increase in raw material and fuel costs as well as the downturn in sales volumes as aresult of the slowdown in semiconductor market conditions.
Profit from fumed silica increased. Despite higher raw material and fuel costs, this was mainly due
to progress in the revision of selling prices.
Profit from thermal management materials increased. In addition to firm sales volumes mainly forsemiconductor manufacturing equipment, this was largely due to efforts aimed at promoting therevision of sales prices.
As a result of the above, segment net sales increased 22.1% compared with the previous
consolidated fiscal year, to ¥ 91,589 million and operating profit decreased 3.1% to ¥ 7,011 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 11.9% compared with the previous
consolidated fiscal year, to ¥ 37,567 million and operating profit increased 22.2% to ¥ 7,377 million.
The segment reported higher earnings on higher sales.
Eco BusinessIn ion exchange membranes, earnings grew largely owing to higher shipments.
In waste gypsum board recycling, despite the steady acceptance of waste gypsum board, earnings
decreased owing to a variety of factors including the increase in fuel costs.
As a result of the above, segment net sales increased 34.3% compared with the previous
consolidated fiscal year, to ¥ 13,842 million and operating profit amounted to ¥ 46 million (posted
operating loss of ¥ 468 million in the previous consolidated fiscal year).

5<2> Outlook for fiscal 2023
[1] Outlook for operating forecasts for fiscal 2023
In the fiscal year ending March 31, 2024, while social activities are expected to return increasingly
to normal as the with-Corona era firmly takes hold, the outlook for the future is projected to remain
extremely uncertain. This is largely due to the rapid tightening of monetary conditions and the risein raw material and fuel prices attributable to the protracted conflict in Ukraine.
Based on current information, we forecast net sales of ¥ 380 billion, an increase of 8.0% (¥ 28.2
billion) compared with the consolidated fiscal year under review, operating profit of ¥30 billion, aincrease of 109.2% (¥ 15.6 billion), ordinary profit of ¥30 billion, a increase of 102.9% (¥ 15.2
billion) and profit attributable to owners of parent of ¥22 billion, a increase of 134.9% (¥ 12.6
billion).
Effective from the fiscal year ending March 31, 2024, the Electronic Materials Segment will berenamed the Electronic & Advanced Materials Segment. There is no impact on segment
information as a result of the change in segment name.
In addition, the Company will change its depreciation method for Property, plant and equipment
to the straight-line method from the beginning of the fiscal year ending March 31, 2024. Thischange is expected to reduce depreciation by approximately ¥5.4 billion. The effect of this changeon the Company’s profit and loss has been factored into data for Operating profit, Ordinary profit,
and Profit attributable to owners of parent shown below.
(Unit: Millions of yen)
Net sales

Operating profit

Ordinary profit

Profit attributableto owners ofparentFiscal 2023

380,000

30,00030,00022,000Fiscal 2022

351,790

14,336

14,783

9,364

8.0

109.2

102.9

134.9

Rate of change (%)

These forecasts are calculated based on an exchange rate of ¥130/$ and a domestic naphtha priceof ¥67,000/kl.
[2] Outlook for segment forecasts for fiscal 2023
Chemicals
From a sales and profit perspective, the high risk of fluctuation is expected to continue owing
mainly to trends in raw material and fuel costs as well as overseas market conditions for mainstay
products. Under these circumstances, the Company will work to secure revenue and earnings byimplementing measures to address changes in the business environment, including efforts tostrengthen cost competitiveness through the reduction of fixed expenses.
CementDomestic demand is expected to remain on par with fiscal 2022 due to sluggish public investment
and other factors. However, conditions are projected to recover moderately owing mainly to full6

scale redevelopment work in urban areas. However, we anticipate that the environment
surrounding the business, such as trends in raw material prices, will remain beset with uncertainty.
Under these circumstances, Tokuyama will work to secure a return to profit by thoroughly reducing
manufacturing costs in conjunction with efforts to promote the revision of sales prices.
Electronic & Advanced Materials
Despite a temporary slowdown, the semiconductor market is expected to expand over the medium
to long term. In line with the progress being made toward miniaturization, customer demands forhigher quality and stable supply are increasing. In such an environment, we will pursue higher
quality polycrystalline silicon for semiconductors and thereby set ourselves apart from othercompanies. Establishing manufacturing and sales bases in Taiwan and South Korea, in IC chemicals
we will focus on establishing a global supply system that responds to growing demand. In the caseof thermal management materials, we will continue to expand sales of existing products while
commercializing new products.
Life Science
The overseas shipment volumes of plastic lens-related materials and dental materials are on an
increase trend. We will continue to focus on new product development and sales activities in
response to changes in customer needs and the market, while aiming to increase profits. As far as
medical diagnosis systems are concerned, energies will be directed toward expanding sales ofmainstay products in a bid to increase sales and profit, promoting the development of diagnostic
reagents.
Eco BusinessIn addition to expanding existing businesses such as ion-exchange membranes and the recycling ofwaste gypsum board, Tokuyama will accelerate the development and commercialization oftechnologies that help reduce CO2 emissions while contributing to a shift in its business portfolio
in a bid to realize a sustainable society.
OthersThe “Others” segment includes businesses which are responsible for the Group’s sales, logistics,
utilities and other functions. The segment will work to increase Group-wide earnings by continuing
to reduce costs.

7

(2) Analysis of Financial Position<1> Analysis of assets, liabilities and net assets
Summary of Consolidated Balance Sheets(Unit: Millions of yen)
Mar 31, 2022

Mar 31, 2023

Amount ofRate ofchangechange (%)

Assets433,210478,342

45,131

10.4

Liabilities

200,292

236,739

36,44718.2

109,219

142,447

33,22730.4

232,917

241,602

8,684

3.7

224,506

229,450

4,944

2.2

Mar 31, 2022

Mar 31, 2023

（Interest-bearing debt）

Net assets（Shareholders' equity）

Financial indicators
Amount ofchangeD/E ratio

0.49

0.62

0.13

Net D/E ratio

0.12

0.32

0.20

Shareholders’ equity ratio (%)

51.8

48.0

(3.8)

Shareholders’ equity ratio based on market price

28.5

31.7

3.2

(%)

(Note)*D/E ratio: interest-bearing debt / shareholders' equity
Net D/E ratio: (interest-bearing debt - Cash and cash equivalents) / shareholders' equity
Shareholders’ equity ratio (%): interest-bearing debt / total assets
Shareholders’ equity ratio based on market price (%) : market capitalization / total assets(Assets)
Property, plant and equipment, raw materials and supplies, accounts receivable – trade, investment
securities increased by ¥ 15,733 million, ¥ 15,044 million, ¥ 12,399 million, ¥ 1,244 million,
respectively.
As a result, total assets amounted to ¥ 478,342 million, an increase of ¥ 45,131 million comparedwith those as of March 31, 2022.

(Liabilities)
Long-term loans payable and the current portion of long-term loans payable increased ¥ 30,965
million, and short-term loans payable increased ¥ 2,027 million.
As a result, total liabilities amounted to ¥ 236,739 million, up ¥36,447 million compared with those
as of March 31, 2022.

8

(Net assets)
Retained earnings increased ¥ 4,317 million as a result of posting profit attributable to owners ofparent mainly, and non-controlling interests increased ¥ 3,740 million.
As a result, net assets totaled ¥ 241,602 million, an increase of ¥ 8,684 million compared withthose as of March 31, 2022.

(Financial indicators)
With regard to the consolidated fiscal year under review, the D/E ratio deteriorated 0.13 comparedwith the previous consolidated fiscal year to 0.62 times due to a ¥ 33,227 million increase ininterest-bearing debt, in spite of a ¥ 4,944 increase in shareholders’ equity.
<2> Analysis of cash flows
Summary of Consolidated Statements of Cash Flows(Unit: Millions of yen)
Fiscal 2021

Fiscal 2022

Cash flows from operating activities

25,986(11,800)

Cash flows from investing activities(33,797)(33,757)

Cash flows from financing activities

5,118

30,151

Effect of exchange rate changes on cash and cash equivalents

1,267

445

(1,424)(14,961)

870-

82,496

67,566

Net increase (decrease) in cash and cash equivalents
Increase/decrease in cash and cash equivalents due to changes in theaccounting period of consolidated subsidiaries
Cash and cash equivalents at end of year

(Cash flows from operating activities)
Net cash used in operating activities totaled ¥ 11,800 million, a decrease ¥ 37,786 million comparedwith the previous consolidated fiscal year. This decrease primarily reflects the increase ininventories of ¥ 25,407 million, the increase in trade receivables of ¥ 13,527 million, and theincrease in other current assets of ¥ 4,703 million, despite positive factors, such as profit before
income taxes of ¥ 14,424 million and depreciation of ¥ 20,773 million.
(Cash flows from investing activities)
Net cash used in investing activities totaled ¥ 33,757 million, an increase of ¥ 39 million comparedwith the previous consolidated fiscal year.
Major contributory factors were payments for purchases of property, plant and equipment of¥ 31,916 million.

9(Cash flows from financing activities)
Net cash provided in financing activities amounted to ¥ 30,151 million, an increase of ¥ 25,032
million compared with the corresponding period of the previous year.
This increase primarily reflects proceeds from long-term borrowings of ¥ 51,504 million, andproceeds from issuance of shares of ¥ 4,103 million, despite negative factors, such as repaymentsof long-term borrowings of ¥ 20,827 million and dividends paid of ¥ 5,036 million.
<3> Procurement of Funds and Liquidity(Procurement of Funds)
The Tokuyama Group recognizes the need to retain a certain level of funds in order to secure theworking capital required to finance its business activities, for priority investments in growth fields
for the purpose of transforming its business portfolio and capital investments for the purpose ofcontributing to the mitigation of global warming, such as rationalization, energy saving, andmeasures to reduce CO2 emissions, as well as to promote strategic investments. While theprincipal method of procuring these funds is to accumulate cash on hand through the continuous
posting of business earnings, the Group will also pursue other avenues. These include borrowing
from financial institutions and the issuing of unsecured bonds.
Furthermore, the Tokuyama Group’s intended capital investment amount for the next fiscal yearis ¥38.2 billion. Plans are in place to utilize cash on hand and borrowings from financial institutions.
(Liquidity)
Cash and cash equivalents stood at ¥ 67,556 million as of the end of the fiscal year under review.
On this basis, the Tokuyama Group is confident that it maintains more than ample liquidity topromote its business activities. In addition, Tokuyama has executed revolving credit facility,
overdraft, and credit liquidation agreements with a financial institution. Accounting for thesefactors, the Company is more than capable of maintain a certain level of liquidity should any
impediment arise. To secure liquidity funds in preparation for unforeseen circumstances, we will
also set up commitment lines on an as needed basis.

10(3) Achievement of Medium-Term Management Plan 2025
The growth business net sales growth rate (CAGR) was 20.1%, which exceeded the target of 10%.
This resulted from increases in sales volumes and in the selling prices of semiconductor-related
products in the electronic materials segment as well as an increase in overseas shipments of life
science segment products such as dental materials. ROE was 4.1%, lower level than the previous
consolidated fiscal year.

(4)

Basic Policy for Profit Distribution and Dividends for Fiscal 2022 and2023

As far as the distribution of profits is concerned, Tokuyama’s basic policy is the ensure thecontinuous and stable payment of dividends to its shareholders. Our basic policy remains the taking
into consideration of business performance, dividend payout ratio, our medium- to long-termbusiness plans and other factors. Meanwhile, the Company will apply internal reserves toinvestment and lending as well as capital expenditures with the aim of further enhancing its
corporate value.
Tokuyama's basic policy is to pay dividends from surplus twice a year, as an interim and a year-end
dividend. The year-end dividend is determined at the Company’s Ordinary General Meeting of
Shareholders and the interim dividend by the Board of Directors. Tokuyama’s Articles ofIncorporation stipulate that interim dividends may be paid by a resolution of the Board of
Directors in accordance with Article 454, Paragraph 5 of Japan’s Companies Act.
In fiscal 2022, the Company expects to pay out a year-end dividend of ¥35 per share in line withthe basic policy mentioned above.
As far as dividends for the next period are concerned, Tokuyama plans to undertake the paymentof an interim and year-end dividend of ¥35 per share respectively based on the assumptions
outlined in “<2> Outlook for fiscal 2023 of (1) Analysis of Operating Results.”

112. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
3/31/2023

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 investment loss
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

12

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

68,0808,672
83,38811
24,111
19,90237,31012,282(71)
253,689

108,926(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

116,841(80,555)
36,285
487,746(430,082)
57,66324,395(21,125)
3,269
33,033
9,788(4,124)
5,664
19,419155,336

68
25
2,588
2,682

349
17
3,098
3,465

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

29,4992,185
19,416
10,023
4,777
(7)
(44)
65,850224,653478,342

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
Asset retirement obligations
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 loss on disaster
Provision for restructuring
Provision for contract loss
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
13(Millions of yen)
3/31/2023

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

49,822
2,491
1,407
1,196
1,231
63
2,768
3,922
519
72
129
5
15
－
469
24,12988,24415,00067,951
3,754
248
194
33
1,181
874
88
118
2,081
57
6,370
97,954200,292

15,000118,333
4,019
228
197
37
1,513
631
48
90
2,113
11
6,269
148,495
236,739

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

10,00023,443
184,852(414)
217,880

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

4,053
(3)
5,630
1,889
11,56912,151
241,602478,342(2) Consolidated Statements of Income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Outsourcing service income
Trial products income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Fiduciary obligation expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Gain on sales of know-how
Gain on insurance claims
Gain on step acquisitions
Compensation income for damages
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 assets
Loss on disposal of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent
14

FY2021
293,830
198,417
95,412(Millions of yen)
FY2022351,790
261,00990,78144,85426,01770,872
24,53947,44029,00476,444
14,336

139
502
1,043
618
610
1,000
2,979
6,894

184
574
1,592
938
668
－
2,256
6,214

1,382
410
－
3,785
5,578
25,855

1,592
684
565
2,926
5,768
14,783

474
161
203
－
36
－
2,218
35
3,129

80
145
110
85
22
5
－
20
469

14
3
157
115
820
224
1,334
27,6494,306(4,831)(525)
28,175174
28,000

11
12
70
63
607
62
827
14,424
2,703
2,358
5,061
9,362
(1)
9,364

(3) Consolidated Statements of Comprehensive Income
28,175(Millions of yen)
FY2022
9,362

317
10
2,805
(199)

466
5
584
(637)

51

239

2,985
31,160658
10,02130,814346

10,00120

FY2021
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 interests15(4) Consolidated Statements of Cash FlowsFY2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities
Share of loss (profit) of entities accounted for using equity method
Subsidy income
Interest expenses
Loss on tax purpose reduction entry of non-current assets
Impairment losses
Loss (gain) on disposal of non-current assets
Gain on insurance claims
Loss (gain) on step acquisitions
Compensation for damage income
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in trade payables
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Compensation for damage received
Compensation paid for damage
Income taxes refund (paid)
Net cash provided by (used in) operating activities

16

27,64919,716
1,451
102
(121)
(641)
(458)
(460)
(161)
(1,043)
(203)
1,382
115
3
820
(36)
－
(2,218)(6,796)(15,704)(1,207)
8,538(1,928)(251)
28,547
1,174(1,386)
36
2,218
(117)
(4,486)25,986(Millions of yen)
FY2022
14,424
20,773(1,293)
30
(458)
(759)
(317)
(68)
(145)
(1,592)
(110)
1,592
63
12
607
(22)
(5)
－
(13,527)(25,407)(4,703)
561
3,074
155
(7,115)
1,441(1,541)22－(1)(4,606)(11,800)

(Millions of yen)
FY2022

FY2021
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Long-term loan advances
Proceeds from collection of long-term loans receivable
Subsidies received
Other, net
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 bonds
Proceeds from issuance of shares
Purchase of shares of subsidiaries not resulting in change in scope of
consolidation
Dividends paid
Dividends paid to non-controlling interests
Decrease (increase) in treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase/decrease in cash and cash equivalents due to changes in theaccounting period of consolidated subsidiaries
Increase (decrease) in cash and cash equivalents resulting from change
in scope of consolidation
Cash and cash equivalents at end of period

17

(259)
275
(31,887)
713
(428)
547

(1,301)
1,400(31,916)
135
(146)
718

－

-370

(201)
187
203
(2,948)(33,797)

(316)
190
110
(2,261)(33,757)(1,787)
6,218(9,150)14,9261,514

2,116
51,504(20,827)
－
4,103

－

(312)

(5,034)(158)(101)(1,307)5,118
1,267(1,424)
83,050(5,036)(144)(3)(1,249)30,151445(14,961)
82,496

870

－

－

21

82,49667,556

(5) Notes on Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Changes in significant subsidiaries during this period)
The newly established STAC Co., Ltd. was included in the scope of consolidation during thesecond quarter consolidated accounting period for the consolidated fiscal year ending March 31,
2023 .
(Changes in accounting policy)
Not applicable.

(Additional Information)
Not applicable.

18(6) Segment information<1> Summary of reportable segments
The reportable segments of the Tokuyama Group are defined as individual units, where separate
financial information is available and which are subject to regular review by the Board of Directorsof the Company to evaluate their results and decide the allocation of management resources.
The Company has business divisions by product group, and the Tokuyama Group conducts
business operations through each business division devising its comprehensive product strategy fordomestic and overseas markets.
The Tokuyama Group is, therefore, composed of segments by product group based on businessdivisions, and has five reportable segments, “Chemicals,” “Specialty Products,” “Cement,” “Life &Amenity,” and “Eco Business
Main products and services of each reportable segment are as follows:

Reportablesegment

Main products and services

Chemicals

Caustic soda, soda ash, calcium chloride, sodium silicate, vinyl chloride
monomer, polyvinyl chloride resin, propylene oxide, chlorinated solvents,and hydrogen

CementCement, ready-mixed concrete, cement-type stabilizer, and resource
recycling businessElectronic
Materials

Polycrystalline silicon, fumed silica, tetrachlorosilane, aluminum nitride,
high-purity isopropyl alcohol for the electronics industry, photoresist
developer and isopropyl alcohol for industrial use

Life Science

Medical diagnosis systems, dental materials and equipment,
pharmaceutical ingredients and intermediates, plastic lens-relatedmaterials for glasses and microporous film

Eco Business

Waste gypsum board recycling, ion exchange membranes and plastic
window sashes

19<2> Information on sales, income, assets and other items by reportable segment
Fiscal 2021

(April 1, 2021 –March 31, 2022)(Millions of yen)

Reportable segments

Sales
Sales to customers
Inter-segment
sales/transfer
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
expenses*4
Increase in tangible
and intangible fixed
assets*5

Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others*1

Total

Figures inquarterly
Adjustment
consolidated*2
incomestatement*3

101,093

49,67974,33233,4399,935

25,349293,830-

293,830

388

687

664

125

370

10,953

13,188(13,188)-

101,482
14,22559,47250,366(1,912)58,67074,996
7,232
91,00833,564
6,036
39,294

10,305(468)
12,36436,302
3,851
60,593307,018
28,964321,403(13,188)(4,425)
111,807

293,830
24,539433,210

2,969

3,953

4,952

1,361

605

4,177

18,0201,696

19,716

4,891

4,806

14,348

1,657

924

5,238

31,865

3,190

35,056*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 Adjustment is as follows:(1) The segment profit adjustment amount consists mainly of basic R&D expenses that are not related to specificreportable segments.
(2) Included in the segment assets adjustment amount are corporate assets that are not allocated to specificreportable segments (¥ 149,158 million).
*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 Included in depreciation expenses is the long-term prepaid expense depreciation amount.
*5 Included in increase in tangible and intangible fixed assets is the long-term prepaid expense increase amount.
*6 Net sales are not presented separately from earnings derived from contracts with customers and other earnings
because the amount of other earnings is insignificant

20

Fiscal 2022

(April 1, 2022 –March 31, 2023)(Millions of yen)

Reportable segments

Sales
Sales to customers
Inter-segment
sales/transfer
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
expenses*4
Increase in tangible
and intangible fixed
assets*5

Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others*1

Total

Figures inquarterly
Adjustment
consolidated*2
incomestatement*3

115,866

57,78590,87637,543

13,597

36,121

351,790-351,790

397

725

713

23

245

11,20913,314(13,314)-116,263
6,887
66,14758,511(3,718)66,382

91,5897,011
115,317

37,567
7,377
43,987

13,842
46
14,51547,331
2,036
70,990365,105
19,640377,340(13,314)(5,303)101,001

351,790
14,336478,342

3,317

3,848

5,634

1,399

640

3,847

18,686

2,087

20,773

4,571

6,374

14,113

1,359

2,125

4,092

32,636

4,054

36,690*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 Adjustment is as follows:(1) The segment profit adjustment amount consists mainly of basic R&D expenses that are not related to specificreportable segments.
(2) Included in the segment assets adjustment amount are corporate assets that are not allocated to specificreportable segments (¥ 139,726million).
*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 Included in depreciation expenses is the long-term prepaid expense depreciation amount.
*5 Included in increase in tangible and intangible fixed assets is the long-term prepaid expense increase amount.
*6 Net sales are not presented separately from earnings derived from contracts with customers and other earnings
because the amount of other earnings is insignificant.

(7) Material Subsequent Event
Not applicable.

21