Summary of Consolidated Financial Statements for the Second Quarter Fiscal 2014 (JPGAAP)
October 31, 2014
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL http://www.tokuyama.co.jp/)
Local Code :4043
Representative:
Kazuhisa Kogo, 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 : November 14, 2014
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 second quarter ended Sept. 30, 2014 (April 1, 2014 - Sept. 30, 2014)(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)
[%]

Second Quarter Fiscal 2014
143,880
6.6
10,590
35.6
8,284
35.9
Second Quarter Fiscal 2013
135,034
7.2
7,811
885.3
6,094
(Note) Comprehensive income: 2nd Quarter FY14: (79,135) million yen [-%]; 2nd Quarter FY13: 6,361 million yen [-%]Net income

Second Quarter Fiscal 2014
Second Quarter Fiscal 2013

Net income per
share

Diluted net income
per share(millions of yen)

Year-on-yearchange [%]

(yen)

(yen)

(80,504)
4,518-(231.40)
12.99-

Total assets

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

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

Sept. 30, 2014
Mar. 31, 2014

552,667
154,990576,315
236,453
Sept. 30, 2014: 148,302 million yen(Reference) Shareholders' equity:

26.8
426.31
39.9
660.18Mar. 31, 2014: 229,667 million yen

2. Dividends（Period）

1st quarter(yen)

Fiscal 2013, ended
Mar 31, 2014
Fiscal 2014, ending
Mar 31, 2015
Fiscal 2014
（Forecast）

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

-

3.00

-

0.00

(yen)

Total

(yen)

(yen)

-

3.00

6.00

-

0.00

0.00

(Note) Revision of the latest dividends forecast: Yes

3. Consolidated performance forecast for fiscal 2014 (April 1, 2014 - March 31, 2015)(% indicates the rate of change over the corresponding previous period)

Net sales(millionsofyen)Operating income Ordinary income[%](millions

of
yen)

[%]

(millions

of
yen)

[%]

Net income pershare

Net income(millionsofyen)Fiscal 2014
309,000
7.5
21,0003.6
15,0000.2 (75,000)(Note) Revision of the latest consolidated performance forecast: Yes

[%]

-

(yen)

(215.58)*The Company announced the news release, “Notice concerning the Posting of Extraordinary Loss, Revision of
Performance Forecasts, Distribution of Surplus, and the Return of Executive Compensation,” on October 31, 2014.
-1-

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2014 – Sept. 30, 2014): 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, 2014 – Sept. 30, 2014).
(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
No
iv. Retrospective restatements:(4) Number of shares issued (in common stock)
Number of shares issued at end of period Second Quarteri.
Fiscal 2014:(including treasury stock):ii.

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

Second Quarter

Fiscal 2014:
Second Quarter

Fiscal 2014:

349,671,876

Fiscal 2013:

349,671,876

1,796,294

Fiscal 2013:

1,782,644

347,895,825

Second Quarter

Fiscal 2013:

347,919,018(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 quarterly results…………………

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

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

P. 7…………………

P. 9

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

P. 10(1) Consolidated Quarterly Balance Sheets…………………

P. 10(2) Consolidated Quarterly Statements of Income…………………

P. 12(3) Consolidated Quarterly Statements of Comprehensive Income…………………

P. 13(4) Consolidated Quarterly Statements of Cash Flows…………………

P. 14(5) Segment Information…………………

P. 16(3) Explanation concerning information related to future
prediction such as consolidated performance forecast-1-1. Qualitative information on consolidated quarterly results(1) Explanation concerning business results
Consolidated results for the second quarter fiscal 2014 (accumulated figures, April
1, 2014 - September 30, 2014) are summarized as follows:(Unit: Millions of yen)
Net sales

Operating income

Ordinary income

Net income (loss)

Second Quarter Fiscal 2014

143,880

10,5908,284(80,504)

Second Quarter Fiscal 2013

135,034

7,811

6,094

4,518

6.6

35.6

35.9

-

Rate of change (%)

Net sales
Consolidated net sales increased 6.6%, or ¥8.8 billion compared with thecorresponding period of the previous year, to ¥143.8 billion. In addition toincreased sales volumes of cement and caustic soda and selling price revisions ofpetrochemicals and caustic soda, this was attributable to strong sales of active
pharmaceutical ingredients and other products.
Cost of sales
Cost of sales increased 3.8%, or ¥3.7 billion compared with the corresponding
period of the previous year, to ¥102.0 billion, due chiefly to increased sales
volumes and a rise in raw material costs arising from domestic naphtha price hikes.
SG&A expenses
SG&A expenses increased 8.0%, or ¥2.3 billion compared with the corresponding
period of the previous year, to ¥31.2 billion, due mainly to higher distribution
costs resulting from increased sales volumes.
Operating income
Operating income increased 35.6%, or ¥2.7 billion compared with thecorresponding period of the previous year, to ¥10.5 billion, due chiefly to-2-increased sales volumes and profitability improvement of petrochemicals.
Non-operating income/expenses, Ordinary income
Despite a decrease in costs of idle operations, non-operating income/expenses
deteriorated by ¥0.5 billion compared with the corresponding period of theprevious year, due chiefly to an increase in interest expenses and a change fromforeign exchange gains recorded in the corresponding period of the previous year
to foreign exchange losses.
As a result, ordinary income increased 35.9%, or ¥2.1 billion compared with thecorresponding period of the previous year, to ¥8.2 billion.
Extraordinary income/losses, Income/loss before income taxes andminority interests, Income/loss before minority interests, Net income/loss
Extraordinary income/losses deteriorated by ¥87.5 billion compared with thecorresponding period of the previous year. This was largely attributable to theposting of an impairment loss on the polycrystalline silicon manufacturing facilitiesof Tokuyama Malaysia Sdn. Bhd.
As a result of the above, income/loss before income taxes and minority interests
deteriorated by ¥85.3 billion compared with the corresponding period of theprevious year, to a loss of ¥79.6 billion.
Income/loss before minority interests deteriorated by ¥85.2 billion compared withthe corresponding period of the previous year, to a loss of ¥80.7 billion. After
deducting minority interests, the Company recorded a net loss of ¥80.5 billion.
Consequently, net income/loss deteriorated by ¥85.0 billion compared with thecorresponding period of the previous year.

-3-

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

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

30,08824,903

161,788(17,907)

143,880

36,444

27,17423,255

151,884(16,850)

135,034

6.2

10.7

7.1

6.5

-

6.6

Reportable segment

Second Quarter
Fiscal 2014
Second Quarter
Fiscal 2013

Chemicals

Specialty
Products

Cement43,99024,107

38,69841,593

23,4155.8

3.0

Rate of change (%)

Life &
Amenity

Operating income(Unit: Millions of yen)

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

2,586

2,695

12,657(2,066)

10,590

2,780

2,063

2,124

9,352

(1,541)

7,811(20.5)

25.3

26.9

35.3

-

35.6

Reportable segment

Second Quarter
Fiscal 2014
Second Quarter
Fiscal 2013
Rate of change (%)

Chemicals

Specialty
Products

Cement

2,460

2,704

2,211

787

1,596

212.4

69.4

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

ChemicalsWith regard to caustic soda, sales increased compared with the corresponding
period of the previous year. In addition to steady domestic sales, this was
attributable to our efforts to revise selling prices in order to absorb a rise in raw
materials prices.
With regard to vinyl chloride monomer (VCM), despite an increase in raw
material costs arising from domestic naphtha price hikes, profitability improved
owing to high export prices against the backdrop of stronger Asian market
conditions.
With regard to polyvinyl chloride (PVC), sales were steady despite a slowdown indemand for some of its applications. We revised selling prices to absorb a rise in-4-

raw materials prices, and as a result, sales increased compared with thecorresponding period of the previous year.
As a result of the above, segment net sales increased 5.8% compared with thecorresponding period of the previous year, to ¥43.9 billion and operating
income increased 212.4% to ¥2.4 billion. The segment reported higher earnings
on higher sales.

Specialty Products
With regard to semiconductor-grade polycrystalline silicon, sales volume
increased owing mainly to strong demand for mobile terminals including
smartphones. On the other hand, with regard to solar cell-grade polycrystalline
silicon, although the market was on the path of recovery against the backdrop of
the growth in demand for solar panels, sales decreased compared with thecorresponding period of the previous year. This was due to the fact that we
decreased shipments in line with a sales strategy that focused on profits.
With regard to fumed silica, sales were steady, mainly of its application as apolishing material for semiconductors.
With regard to aluminum nitride, sales increased compared with thecorresponding period of the previous year. This was attributable to an increasein sales volumes of such applications as heat dissipation materials used for
power devices for industrial machinery and LEDs.
With regard to high-purity chemicals for electronics manufacturing, sales
increased compared with the corresponding period of the previous year, owing
to strong sales of such applications as semiconductor and liquid crystal
production.
As a result of the above, segment net sales increased 3.0% compared with thecorresponding period of the previous year, to ¥24.1 billion and operating-5-

income increased 69.4% to ¥2.7 billion. The segment reported higher earnings
on higher sales.

CementIn the cement business, domestic sales volume grew at a sluggish pace due
chiefly to unseasonably bad weather. On the other hand, exports to Asia
increased against the backdrop of steady demand in the Asian market, as a result,
total sales volumes increased compared with the corresponding period of theprevious year. On the cost front, distribution costs increased due to theconstruction of new cement tankers.
In the recycling and environment-related business, the amount of waste theCompany accepted remained almost flat.
As a result of the above, segment net sales increased 6.2% compared with thecorresponding period of the previous year, to ¥38.6 billion, while operating
income decreased 20.5% to ¥2.2 billion. The segment reported lower earnings
on higher sales.

Life & Amenity
Sales of active pharmaceutical ingredients grew owing to increased sales volumesof generic drugs and other applications.
With regard to microporous film, the manufacturing facilities of Tianjin
Tokuyama Plastics Co., Ltd. commenced operations, and due to this, 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, we revised selling prices to absorb a rise in raw
material prices, and as a result of this, sales increased compared with the-6-corresponding period of the previous year.
With regard to gas sensors, sales increased compared with the corresponding
period of the previous year. This was attributable to strong overseas sales ofsuch applications as gas alarm devices and air cleaners.
With regard to medical diagnosis systems, profitability rose compared with thecorresponding period of the previous year. In addition to steady sales of
products for blood testing, this was attributable to our cost reduction efforts.
With regard to plastic window sashes, sales decreased compared with thecorresponding period of the previous year. This was attributable to a decrease insales volume arising from reaction to the rush demand before the consumption
tax increase.
As a result of the above, segment net sales increased 10.7% compared with thecorresponding period of the previous year, to ¥30.0 billion and operating
income increased 25.3% to ¥2.5 billion. The segment reported higher earnings
on higher sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of September 30, 2014, total assets amounted to ¥552.6 billion, a decrease of¥23.6 billion compared with those as of March 31, 2014.
This was largely attributable to a decrease in property, plant and equipment
resulting from the posting of a loss on the impairment of polycrystalline silicon
manufacturing facilities of Tokuyama Malaysia Sdn. Bhd.
Total liabilities amounted to ¥397.6 billion, an increase of ¥57.8 billion comparedwith those as of March 31, 2014.
This was largely attributable to long-term loans payable through a medium-term
commitment line agreement.
-7-

Net assets totaled ¥154.9 billion, a decrease of ¥81.4 billion compared with those
as of March 31, 2014.
This was largely attributable to a decrease in retained earnings resulting from theposting of the impairment loss.
As a result of the above, although some of the loan agreements the Company has
with some financial institutions have conflicted with the financial covenants, theCompany has already asked the financial institutions to negotiate with us about
exemption from the financial covenants and continuous transactions. In addition,
the Company has got sufficient funds on hand, and is certain that it is able to raise
funds in a stable manner at present.

(Status of cash flows)
As of September 30, 2014, cash and cash equivalents were ¥110.4 billion, an
increase of ¥40.5 billion compared with those as of March 31, 2014.
Net cash provided by operating activities totaled ¥16.5 billion, an increase of ¥5.5
billion compared with the corresponding period of the previous year. Principal
items included depreciation expenses of ¥8.0 billion.
Net cash used in investing activities totaled ¥29.4 billion, a decrease of ¥25.4
billion compared with the corresponding period of the previous year. Major
contributory factor was payments for purchases of property, plant and equipmentof ¥27.5 billion, which arose largely from construction of polycrystalline silicon
manufacturing facilities of Tokuyama Malaysia Sdn. Bhd.
Net cash provided by financing activities amounted to ¥53.1 billion, an increase of¥32.0 billion compared with the corresponding period of the previous year. Thiswas primarily attributed to proceeds from long-term loans payable of ¥55.3 billion.

-8-

(3) Explanation concerning information related to future prediction such as
consolidated performance forecasts
Based on the current performance trend, the Company has revised theperformance forecasts, announced on July 31, 2014. For further details, please see
the Company’s news release, “Notice concerning the Positing of Extraordinary
Loss, Revision of Performance Forecasts, Distribution of Surplus, and the Returnof Executive Compensation,” dated October 31, 2014.

The performance forecasts have been prepared on the basis of information
available at this point and certain assumptions which are judged to be rational, andmay be substantially different from actual performance because of various factorsthat may arise from now on.

-9-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen
3/31/2014
9/30/2014
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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-10-

27,60567,49543,05014,131
9,896
17,878
1,068
10,635(138)
191,623

53,73963,81457,053
15,352
9,155
18,717
1,290
13,091(126)
232,088

102,709(71,685)
31,024
441,874(392,062)
49,812
23,002(21,360)
1,642
32,667
2,156
(895)
1,261
206,692
323,100

101,240(71,400)
29,840438,764(389,530)
49,23322,458(20,969)
1,488
32,662
2,126
(890)
1,236
143,693258,154

3,608
29
6,493
10,131

5,949
46
5,357
11,35333,334
3,473
839
7,804
6,264
(21)
(233)
51,460384,692
576,31536,016
3,363
848
6,133
5,077
(21)
(347)
51,070320,579
552,667

Millions of yen
3/31/2014
9/30/2014
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 Restructuring
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
Minority interests
Total net assets
Total liabilities and net assets-11-

40,08912,347
4,000
8,811
－
376
1,865
1
2,056
1,429
132
13
－
28,17399,29739,593
14,6384,000
20,733
5,000
349
1,029
4
2,355
1,334
28
6
3,108
21,142
113,325

50,000164,278
953
7,338
207
2,747
842
131
－
1,112
5
12,946
240,565
339,862

45,000204,481
956
8,318
199
3,214
688
95
8,099
1,128
5
12,162
284,351
397,676

53,45857,670107,155(1,428)
216,856

53,45857,67024,144(1,432)
133,840

8,369
749
2,710
982
12,811
6,785
236,453
576,315

10,193
258
2,969
1,039
14,461
6,687
154,990552,667(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
Group term insurance dividend
Other
Total non-operating income
Non-operating expenses
Interest expenses
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
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on disaster
Loss on disposal of non-current assets
Loss on sales of shares of subsidiaries and associates
Provision for loss on purchase contract
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Income (loss) before minority interests
Minority interests in loss
Net income (loss)-12-

Millions of yen
Q2 FY2013
Q2 FY2014
135,034
143,880
98,284
102,044
36,74941,836
16,863
12,07428,938
7,811

18,057
13,18831,245
10,590

25
312
269
351
181
546
1,684

48
349
392
－
209
558
1,559

1,288
2,113
3,401
6,094

2,309
1,556
3,865
8,284

185
－
379
564

47
5
－
52

37
220
－
215
78
－
384
936
5,722
1,204
4,517
0
4,518

－
75,942
4
232
8
11,207567
87,962(79,624)
1,151(80,775)(271)(80,504)

(3) Consolidated Quarterly Statements of Comprehensive Income

Income (loss) before minority interests
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 toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests-13-

Millions of yen
Q2 FY2013
Q2 FY2014
4,517(80,775)
1,313(1,431)
1,826
－
134
1,843
6,361

1,821
(490)
266
57
(13)
1,640
(79,135)

6,255
106

(78,854)(280)

(4) Consolidated Quarterly Statements of Cash Flows
Millions of yen
Q2 FY2013
Q2 FY2014
Cash flows from operating activities
Income (loss) before income taxes and minority interests
Depreciation
Increase (decrease) in allowance for loss on compensation for building
Increase (decrease) in provision for loss on purchase contract
Increase (decrease) in other provision
Increase (decrease) in net defined benefit liability
Increase (decrease) in net defined benefit asset
Interest and dividend income
Foreign exchange losses (gains)
Gain on bargain purchase
Loss (gain) on sales of property, plant and equipment
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Share of (profit) loss of entities accounted for using equity method
Interest expenses
Impairment loss
Loss (gain) on disposal of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in other current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope ofPayments of long-term loans receivableCollection of long-term loans receivable
Purchase of money held in trust
Payments for transfer of business
Other, net
Net cash provided by (used in) investing activities

-14-

5,722
8,119
(258)
－
(213)
－
－
(337)
84
－
(147)
(379)
78
(269)
1,288
220
215
4,497
2,007
(1,259)(2,817)(2,234)(1,557)
12,759709(1,296)(1,144)
11,028(79,624)
8,056
(154)
11,207
566
30
(90)
(398)
526
(5)
(47)
－
8
(392)
2,309
75,942
232
3,628
342
(21)
(164)
(1,756)366
20,561444(2,238)(2,217)
16,549(19)
19(16,669)
367
(703)
808
(4,115)(8)
131(34,300)－(445)(54,936)(18)
389(27,571)
70
(5)
30
－
(13)
126
－
(3,750)1,266(29,476)

Millions of yen
Q2 FY2013
Q2 FY2014
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
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 resulting from change ofIncrease (decrease) in cash and cash equivalents resulting from change inCash and cash equivalents at end of period-15-

21,2735,300(3,885)(1,039)
(310)
(5)
(183)
21,149622(22,135)
52,431414－
30,7102,494
55,340(3,496)(1,125)
(246)
(72)
304
53,197230
40,501
69,97310(8)110,476

(5) Segment information
Second Quarter Fiscal 2013 (accumulated figures, April 1, 2013 – September 30, 2013)
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

Cement41,074519
41,593787

18,482
4,933
23,415
1,596

36,37173
36,444
2,780Life &
Amenity

26,410764
27,174
2,063

Others*1

Total

12,696
10,55923,2552,124

135,034
16,850151,884
9,352

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(16,850)(16,850)(1,541)135,034
135,034
7,811*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(Significant impairment loss for non-current assets)
There were no material facts to be reported in the reportable segments. During the second quarter fiscal 2013
(April 1, 2013 to September 30, 2013), impairment losses that were not allocated to the reportable segments
amounted to ¥220 million.
(Significant change of the amount of goodwill)In the Cement segment, the Company acquired shares of Holcim (Nouvelle Calédonie) S.A. so that it would
become the Company’s subsidiary. (The subsidiary’s name was changed to Tokuyama Nouvelle Calédonie S.A.
as of June 28, 2013.) During the second quarter fiscal 2013 (April 1, 2013 to September 30, 2013), the amountof increase in goodwill brought by the said event was ¥3,356 million.

Second Quarter Fiscal 2014 (accumulated figures, April 1, 2014 – September 30, 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

Cement43,626363
43,9902,460

18,2795,828
24,1072,704

38,64553
38,6982,211Life &
Amenity

29,247841
30,088
2,586

Others*1

Total

14,082
10,821
24,903
2,695

143,880
17,907
161,788
12,657

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(17,907)(17,907)(2,066)

143,880
143,880
10,590*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.
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*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 changes in reportable segments(Adoption of the accounting standard for retirement benefits)
Regarding the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, issued on May 17,
2012; hereinafter “Retirement Benefits Accounting Standard”) and the “Guidance on Accounting Standard for
Retirement Benefits” (ASBJ Guidance No. 25, issued on May 17, 2012; hereinafter “Retirement Benefits
Implementation Guidance”), effective from the first quarter of fiscal 2014, the Company adopted theprovisions specified under the main clause of Section 35 of Retirement Benefits Accounting Standard and themain clause of Section 67 of Retirement Benefits Implementation Guidance. Under the new accounting policy,
the Company has revised a method for calculating retirement benefit obligations and service costs and changed
the attribution method for estimated retirement benefits from a fixed amount standard to a payment calculation
standard. At the same time, the Company has changed a method for determining the discount rate from using a
discount rate based on the years similar to the average remaining service period of employees to using a single
weighted average discount rate which reflects the projected retirement benefit payment period and an amountby projected payment period. The effect of this change 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 Chemicals segment, the Company recorded impairment loss of ¥1,089 million during the second quarterfiscal 2014 (April 1, 2014 to September 30, 2014).
In the Specialty Products segment, the Company recorded impairment loss of ¥74,820 million during thesecond quarter fiscal 2014 (April 1, 2014 to September 30, 2014).
(Significant change of the amount of goodwill)In the Cement segment, the rights and obligations in connection with the manufacturing and marketing
activities, etc. of three ready-mixed concrete businesses were inherited by Hiroshima Tokuyama Ready Mixed
Concrete Co., Ltd., a newly-established succeeding company in an absorption-type split. During the second
quarter fiscal 2014 (April 1, 2014 to September 30, 2014), the amount of increase in goodwill brought by thesaid event was ¥2,970 million.

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