Summary of Consolidated Financial Statements for the Fiscal 2023 (JPGAAP)
April 26, 2024
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 for the Ordinary General Meeting of Shareholders: June 25, 2024
Scheduled date of year-end dividends payout: June 26, 2024
Scheduled date for the filing of the consolidated financial statements: June 26, 2024
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, 2023 (Apr. 1, 2023 – Mar. 31, 2024)
Note: All amounts are rounded down to the nearest million yen.
% indicates year-on-year changes.

(1) Performance

Net sales(millions of yen)

Fiscal 2023
Fiscal 2022

341,990351,790

Operating profit
[%]

(2.8)
19.7

(millions of yen)

25,637
14,336[%]78.8(41.6)(Note) Comprehensive income: FY23: 25,753 million yen [157.0%]

Basic earnings per
Diluted net
share
income per share
Fiscal 2023
Fiscal 2022

(yen)

246.72130.15

Profit attributable toowners of parent

Ordinary profit(millions of yen)

26,292
14,783[%](millions of yen)

77.9
(42.8)

17,751
9,364

[%]

89.6
(66.6)

FY22: 10,021 million yen [(67.8)%]

Net income toshareholders’equity(yen)

Ordinary profit to Operating profit
total assets
to net sales

[%]

[%]

7.4
4.1

－
－

[%]

5.6
3.2

(Reference) Equity in earnings of unconsolidated subsidiaries and affiliates: FY23: 905 million yen

7.5
4.1

FY22: 1,592 million yen(2) Financial position

Total assets
Mar 31, 2024
Mar 31, 2023
(Reference)

Shareholders’ equity
ratio

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

457,360
478,342259,948
241,602

Shareholders' equity:

FY23:

Net assets per share

[%]

(yen)

3,464.47
3,189.01

54.5
48.0
249,256 million yen

FY22:229,450 million yen(3) Cash flows

Cash flows fromoperating activities
Fiscal 2023
Fiscal 2022

(millions of yen)

55,828(11,800)

Cash flows frominvesting activities(millions of yen)

(30,405)(33,757)

Cash flows fromfinancing activities(millions of yen)

(46,508)
30,151

Cash and cash
equivalents at the endof the year
(millions of yen)

47,90567,556

2. Dividends（Period）

1stquarter(yen)

Annual dividends
2nd
3rd
Yearendquarter quarter

Total

Total dividends
paid(Total)Dividend
payout ratio(Consolidated)

Dividend on
net assets ratio(Consolidated)

[%]

[%]

(yen)

(yen)

(yen)

(yen)

(millions of yen)

Fiscal 2022

--

35.00

--

35.00

70.00

5,040

53.8

2.2

Fiscal 2023

--

35.00

--

45.00

80.00

5,765

32.4

2.4

Fiscal 2024
（Forecast）

--

50.00

--

50.00

100.0028.8

3. Consolidated performance forecast for fiscal 2024 (April 1, 2024 - March 31, 2025)
Net sales
Fiscal 2024

(millions ofyen)

352,000(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Operating profit Ordinary profit Profit
per shareowners of parent
[%]

2.9

(millions ofyen)

33,000[%]28.7(millions ofyen)

31,000[%]17.9(millions ofyen)

25,000

[%]

40.8

(yen)

347.48*Notes(1) Changes in significant subsidiaries during this period: No(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:

No
Yes
Yes
No

(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (5) Notes on Quarterly
Consolidated Financial Statements (Changes in accounting policies that are difficult to distinguish from changes inaccounting estimates)” on page 18 of the Accompanying Materials to this Summary of Quarterly Consolidated
Financial Statement.
(3) Number of shares issued (in common stock)
Number of shares issued at end of periodi.
Fiscal 2023:(including treasury stock):ii. Number of treasury stock at end of period:
Fiscal 2023:
Fiscal 2023:
iii. Average number of shares over period:

72,088,327

Fiscal 2022:

72,088,327

141,799

Fiscal 2022:

137,882

71,950,166

Fiscal 2022:

71,951,091

(Reference) Summary of Non-Consolidated Operating Results
1. Non-consolidated results for fiscal year ended March 31, 2024 (April 1, 2023 – March 31, 2024)
Note: All amounts are rounded down to the nearest million yen.
% indicates year-on-year changes.

(1) Performance

Net sales
Fiscal 2023
Fiscal 2022

Operating profit(millions of yen)[%]

243,402260,763

(6.7)
21.1

Net profit per share(yen)

Fiscal 2023
Fiscal 2022

156.5419.93(millions of yen)

11,2302,000

Ordinary profit
[%]

461.3
(86.3)

Mar 31, 2024
Mar 31, 2023
(Reference)

14,544 431.6
2,735 (83.9)(millions of yen)

11,262
1,433

[%]

685.5
(93.7)(yen)－－

Net assets(millions of yen)(millions of yen)356,276385,901

177,060
165,770

Shareholders' equity:

Net profit[%]

Diluted net profit per
share(2) Financial position

Total assets(millions of yen)

Shareholders’ equity
ratio

FY23: 177,060 million yen

Net assets per share

[%]

49.7
43.0

(yen)

2,461.01
2,303.96
FY22:165,770 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 thebasis 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.

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. 22

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
During the period under review, there were rising geopolitical risks from conflict in Ukraine as wellas in the Middle East conflict. Against this backdrop, there were concerns about a rapid economic
slowdown due to monetary tightening in the U.S. and Europe as well as the real estate recession in
China. Despite the aforementioned, the global economy slowed only moderately, supported by the
resilience of the U.S. and emerging economies.
In the Japanese economy, while the recovery in inbound demand, corporate investment in plantand equipment, and rising wages were expected to help break Japan out of a period of prolonged
deflation, these factors were not sufficient to stimulate consumer spending.
Under these circumstances, the Company has been working on the priority measures of its
Medium-Term Management Plan 2025: transform business portfolio, contribute to mitigation of
global warming, and practice socially responsible management.
Turning to earnings, sales declined as semiconductor market sluggishness resulted in weak
semiconductor-related sales and Excel Shanon Corporation was removed from the Company’s
scope of consolidation after a portion of the company’s shares were transferred. However, profits
increased owing mainly to progress in revising domestic sales prices for cement and chemicals aswell as reducing manufacturing costs.

(Unit: Millions of yen)
OperatingprofitNet sales

Ordinary profit

Profitattributable toowners ofparentFiscal 2023

341,990

25,637

26,292

17,751

Fiscal 2022

351,790

14,336

14,783

9,364

(2.8)

78.8

77.9

89.6

Rate of change (%)

Net sales
Consolidated net sales decreased 2.8%, or ¥ 9,800 million compared with the previous consolidated
fiscal year, to ¥ 341,990 million. Despite domestic sales price revisions for cement and solid sales
for healthcare-related products, this decline largely reflected sluggish semiconductor market
conditions, weakening sales of semiconductor-related products, and Excel Shanon Corporation
removal from the Company’s scope of consolidation effective from the second quarter of the fiscal
year under review.
2

Cost of sales
Cost of sales decreased 7.1%, or ¥ 18,539 million compared with the previous consolidated fiscal
year, to ¥ 242,470 million. This was mainly due to the decline in sales volume and drop in fuel andraw material prices.
SG&A expenses
SG&A expenses decreased 3.4%, or ¥ 2,561 million compared with the previous consolidated fiscal
year, to ¥ 73,882 mainly due to the decline in logistics costs coinciding with sluggishness in sales
volume.
Operating profit
Operating profit increased 78.8%, or ¥ 11,300 million compared with the previous consolidated
fiscal year, to ¥ 25,637 million. Despite weak sales of semiconductor-related products on the backof a slowdown in the semiconductor market, this upswing was essentially attributable to higher
sales prices for cement and chemicals in Japan and progress in reducing manufacturing costs.
Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥ 208 million compared with the previous
consolidated fiscal year. Despite a downturn in the share of profit from entities accounted for using
the equity method, this improvement largely reflected foreign exchange gains in the consolidated
fiscal year under review compared with foreign exchange losses in the previous consolidated fiscal
year.
As a result of the above, ordinary profit increased 77.9%, or ¥ 11,509 million compared with theprevious consolidated fiscal year, to ¥ 26,292 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses deteriorated by ¥ 77 million compared with the previous
consolidated fiscal year.
As a result of the above, profit before income taxes increased 79.2%, or ¥ 11,431 million comparedwith the previous consolidated fiscal year, to ¥ 25,856 million.
Profit after deducting income taxes calculated in an appropriate way increased 86.0%, or ¥ 8,048
million compared with the previous consolidated fiscal year, to ¥ 17,411 million.
Profit attributable to owners of parent increased 89.6%, or ¥ 8,387 million compared with theprevious consolidated fiscal year, to ¥ 17,751 million.

3[2] Operating performance by business segment
Effective from the first quarter of the fiscal year under review, the Company has reviewed the nameof one of its reportable segments. In specific terms, the Electronic Materials Segment has beenrenamed the Electronic & Advanced Materials Segment. This change applies only to theaforementioned segment name and has no impact on segment information. The following comparison
with the previous consolidated fiscal year reflects this change in segment name.

Fiscal 2023

Fiscal 2022

(Unit: Millions of yen)
Rate of change(%)
Operating
Net sales
Profit(loss)Net sales

Operating
Profit(loss)Net sales

Operating
Profit(loss)

Chemicals

115,594

11,530116,263

6,887

(0.6)

67.4

Cement67,187

6,710

58,511(3,718)

14.8-

Electronic &Advanced Materials

77,9693,341

91,5897,011(14.9)(52.3)

Life Science

41,424

8,476

37,567

7,377

10.3

14.9

Eco Business

7,392

(102)

13,842

46(46.6)-

Others43,653

1,476

47,331

2,036

(7.8)

(27.5)

Total

353,222

31,432365,105

19,640

(3.3)

60.0

Adjustment(11,231)(5,795)(13,314)(5,303)--Figures in quarterly
consolidated profit
341,990
25,637
14,336(2.8)
351,790
statement(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

78.8

Chemicals
Despite a decrease in sales volume, caustic soda earnings grew owing to successful efforts to revise
sales prices in Japan.
Vinyl chloride monomer and vinyl chloride resin profits declined due mainly to decreases inoverseas market prices for vinyl chloride monomer as well as sales volumes for vinyl chloride resin.
Despite lower sales volumes, soda ash, calcium chloride, and other products earnings increased
owing to successful efforts to revise sales prices.
As a result of the above, segment net sales decreased 0.6% compared with the previous
consolidated fiscal year, to ¥ 115,594 million and operating profit increased 67.4% to ¥ 11,530
million. The segment reported higher earnings on lower sales.

4Cement
Despite a slight decrease in sales volume year-on-year in Japan, cement earnings grew owing tosuccessful efforts to revise sales prices.
As a result of the above, segment net sales increased 14.8% compared with the previous
consolidated fiscal year, to ¥ 67,187 million and operating profit amounted to ¥ 6,710 million(Posted operating loss of ¥ 3,718 million in the previous consolidated fiscal year).
Electronic & Advanced Materials
In semiconductor-grade polycrystalline silicon profits fell due to sluggish semiconductor market
conditions, which placed downward pressure on sales volumes.
IC chemical earnings improved. This mainly reflected the increase in operating rates at Formosa
Tokuyama Advanced Chemicals Co., Ltd. in Taiwan and successful efforts to reduce costs.
Fumed silica profits decreased due to lower sales volumes amid weak semiconductor market andChinese economic conditions.
Thermal management material earnings increased. This reflected robust sales volumes of powerdevice applications.
As a result of the above, segment net sales decreased 14.9% compared with the previous
consolidated fiscal year, to ¥ 77,969 million and operating profit decreased 52.3% to ¥ 3,341
million. The segment reported lower earnings on lower sales.
Life Science
Dental materials results remained in line with the previous consolidated fiscal year thanks largely
to robust sales in Japan and overseas.
Medical diagnosis systems profits rose owing to higher sales of laboratory information systems,laboratory automation systems , and electrolyte analyzers.
As a result of the above, segment net sales increased 10.3% compared with the previous
consolidated fiscal year, to ¥ 41,424 million and operating profit increased 14.9% to ¥ 8,476 million.
The segment reported higher earnings on higher sales.

5Eco BusinessIon exchange membrane earnings decreased owing to the decline in shipments.
In waste gypsum board recycling, earnings decreased owing mainly to a decline in the volume ofwaste gypsum board collected.
In plastic window sashes, Excel Shanon Corporation was removed from the Company’s scope of
consolidation effective from the second quarter of the fiscal year under review. This reflected thetransfer of a portion of the company’s shares.
As a result of the above, segment net sales decreased 46.6% compared with the previous
consolidated fiscal year, to ¥ 7,392 million and operating loss amounted to ¥ 102 million (posted
operating profit of ¥ 46 million in the previous consolidated fiscal year).

<2> Outlook for fiscal 2024
[1] Outlook for operating forecasts for fiscal 2024
In the next fiscal year, uncertainty remains amid geopolitical risks in Europe and the Middle Eastas well as future monetary policies in various countries. Despite the aforementioned, the economy
is expected to gradually pick up in the second half of the year mainly as semiconductor demand
recovers.
The Group will strongly promote the fields of electronics, health, and the environment, which aredefined as growth businesses in the Medium-Term Management Plan 2025 announced on February
25, 2021, while aiming for growth. Our Chemicals and Cement businesses will promote increased
efficiency while generating sustainable cash flows.
Based on current information, we forecast net sales of ¥ 352 billion, an increase of 2.9% (¥ 10.0
billion) compared with the consolidated fiscal year under review, operating profit of ¥33 billion,
an increase of 28.7% (¥ 7.3 billion), ordinary profit of ¥31 billion, an increase of 17.9% (¥ 4.7
billion) and profit attributable to owners of parent of ¥25 billion, an increase of 40.8% (¥ 7.2
billion).

Net sales

Operating profit(Unit: Millions of yen)
Profit attributable
Ordinary profit
to owners ofparent31,00025,000Fiscal 2024

352,000

33,000Fiscal 2023

341,990

25,637

26,292

17,751

2.9

28.7

17.9

40.8

Rate of change (%)

These forecasts are calculated based on an exchange rate of ¥140/$ and a domestic naphtha priceof ¥65,000/kl.

6

[2] Outlook for segment forecasts for fiscal 2024
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. Against this backdrop, Tokuyama will strive to secure earnings by implementing measures
to address changing business conditions that include strengthening sales capabilities through a newsales structure.
CementAs far as demand in Japan is concerned, private-sector demand is solid for redevelopment projects
and factory construction in urban areas. In contrast, shipments are expected to remain at the fiscal
2023 level due to longer construction periods and labor shortages mainly among contractors andlogistics providers. Under these conditions, we will work to increase earnings by maintaining
reasonable sales prices.
Electronic & Advanced Materials
The timing of a semiconductor market recovery will vary depending on position in the supply
chain, though demand is expected to increase over the medium to long term. In addition, as
miniaturization progresses, customers are increasingly demanding higher quality and more stablesupply. Under these conditions, we are working to differentiate Tokuyama from other companies
by further pursuing quality in semiconductor-grade polycrystalline silicon. In IC chemicals, we aim
to increase shipments from Taiwan bases and will focus on establishing a global supply system tomeet demand growth by upgrading production and sales facilities in South Korea. In fumed silica
and thermal management materials, we will increase sales of existing products and pursue thecommercialization of products under development.
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, we will accelerate the development and commercialization of technologies
that contribute to the reduction of GHG emissions, as well as contribute to the transformation of
our business portfolio.

7

Others
The “Others” segment includes businesses which are responsible for the Group’s product sales,
logistics, utilities and other functions. The segment will work to increase Group-wide earnings bycontinuing to reduce costs.

(2) Analysis of Financial Position<1> Analysis of assets, liabilities and net assets
Summary of Consolidated Balance Sheets(Unit: Millions of yen)
Mar 31, 2023

Mar 31, 2024

Amount ofRate ofchangechange (%)

Assets478,342457,360(20,982)(4.4)

Liabilities

236,739

197,411(39,328)(16.6)（Interest-bearing debt）

142,447

105,784(36,662)(25.7)Net assets

241,602259,948

18,346

7.6（Shareholders' equity）

229,450249,256

19,806

8.6

Mar 31, 2023

Mar 31, 2024

Amount of

Financial indicatorschangeD/E ratio

0.62

0.42

(0.20)Net D/E ratio

0.32

0.23

(0.09)

Shareholders’ equity ratio (%)

48.0

54.5

6.5

Shareholders’ equity ratio based on market price

31.7

42.7

11.0

(%)

(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 increased by ¥ 13,419 million, despite decrease in cash and deposits
and raw materials and supplies of ¥ 19,396 and ¥ 12,371, respectively.
As a result, total assets amounted to ¥ 457,360 million, a decrease of ¥ 20,982 million comparedwith those as of March 31, 2023.

(Liabilities)
Long-term loans payable and the current portion of long-term loans payable decreased ¥ 54,252
million, in spite of an increase in commercial papers of ¥ 15,000.
As a result, total liabilities amounted to ¥ 197,411 million, down ¥ 39,328 million compared withthose as of March 31, 2023.
8

(Net assets)
Retained earnings increased ¥ 12,566 million as a result of posting profit attributable to owners ofparent mainly, and valuation difference on available-for-sale securities increased ¥ 5,168 million.
As a result, net assets totaled ¥ 259,948 million, an increase of ¥ 18,346 million compared withthose as of March 31, 2023.

(Financial indicators)
With regard to the consolidated fiscal year under review, the D/E ratio improved 0.20 comparedwith the previous consolidated fiscal year to 0.42 times due to a ¥ 19,806 million increase inshareholders’ equity and a ¥ 36,662 decrease in interest-bearing debt.

,<2> Analysis of cash flows
Summary of Consolidated Statements of Cash Flows(Unit: Millions of yen)
Fiscal 2022

Fiscal 2023

Cash flows from operating activities(11,800)

55,828Cash flows from investing activities(33,757)(30,405)

Cash flows from financing activities

30,151(46,508)

445

1,461

(14,961)(19,623)

-

(27)

21

0

67,56647,905

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
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 year

(Cash flows from operating activities)
Net cash provided in operating activities totaled ¥ 55,828 million (Posted net cash used in operating
activities of ¥ 11,800 million in the previous consolidated fiscal year). This change primarily reflects
profit before income taxes of ¥ 25,856 million, depreciation of ¥ 17,690 million, decrease ininventories of ¥ 8,834 million and decrease in trade receivables of ¥ 3,705 million.
(Cash flows from investing activities)
Net cash used in investing activities totaled ¥ 30,405 million, a decrease of ¥ 3,352 million
compared with the previous consolidated fiscal year.
Major contributory factors were payments for purchases of property, plant and equipment of¥ 31,591 million.

9(Cash flows from financing activities)
Net cash used in financing activities amounted to ¥ 46,508 million (Posted net cash provided infinancing activities of ¥ 30,151 million in the previous consolidated fiscal year).
This change primarily reflects repayments of long-term borrowings of ¥ 61,396 million anddividends paid of ¥ 5,038 million, despite increase in commercial papers of ¥ 15,000 million, andproceeds from long-term borrowings of ¥ 6,582 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 the principal
method of procuring these funds is to accumulate cash on hand through the continuous postingof business earnings, the Group will also pursue other avenues. These include borrowing fromfinancial institutions and the issuing of unsecured bonds.
Furthermore, the Tokuyama Group’s intended capital investment amount for the next fiscal yearis ¥32.3 billion. Plans are in place to utilize cash on hand and borrowings from financial institutions.
(Liquidity)
Cash and cash equivalents stood at ¥ 47,905 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 rate of sales (CAGR) for growth businesses was only 8.5%, below the target of 10%,
given lower sales volumes in the Electronic & Advanced Materials segment amid the slump
semiconductor market conditions and the decrease in sales in the Eco Business segment due to thetransfer of the plastic window sash business. ROE was 7.4%, higher level than the previous
consolidated fiscal year.

(4) Basic Policy for Profit Distribution and Dividends for Fiscal 2023 and 2024
The Company regards the return of profits to shareholders as one of its most importantmanagement policies. Tokuyama’s basic policy is to continuously return profits to shareholders
while maintaining a sound financial structure and also stable dividends. To this end, the Company
secures the retained earnings required to increase shareholder value in the future and to respondto changes in the business environment. Under this policy, the Company aims to achieve a dividend
payout ratio of 30% or more for the next fiscal year, targeting a DOE (dividend on equity) ratio
of 3%, which is less sensitive to earnings for a single fiscal year, by comprehensively reflecting
earnings trends, medium- to long-term business plans, cost of capital, and other factors
The Company's basic policy is to pay dividends from capital surplus twice a year, an interim
dividend and a year-end dividend. The year-end dividend is determined by the General Meeting of
Shareholders and the interim dividend by the Board of Directors. The Articles of Incorporation
stipulate that interim dividends may be paid by a resolution of the Board of Directors inaccordance with Article 454, Paragraph 5 of the Companies Act.
Prior to the application of the aforementioned policy, the Company has decided to pay a year-end
dividend of ¥45 per share for the fiscal year under review in order to further increase shareholder
value. This, together with the interim dividend of ¥35 per share paid in December 2023, brings
the annual dividend to ¥80 per share, an increase of ¥10 over the previous fiscal year. This in turnbrings the dividend payout ratio for the fiscal year under review to 32.4%.
For the next fiscal year, the Company plans to pay an annual dividend of ¥ 100 per share (including
an interim dividend of ¥ 50 per share), an increase of ¥ 20 per share over the previous year, basedon the assumptions outlined in “<2> Outlook for fiscal 2024 of (1) Analysis of Operating Results.”

112. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
3/31/2024

3/31/2023
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

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

48,684
9,850
77,27911
28,522
18,42824,938
10,159(99)
217,776

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

119,122(80,870)
38,252496,906(434,655)
62,251
24,729(20,673)
4,056
33,117
11,038(4,463)
6,575
24,503
168,755

349
17
3,098
3,465

252
20
3,190
3,463

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

36,196
2,046
14,834
9,816
4,522
(7)
(44)
67,365239,583
457,360

3/31/2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Commercial papers
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 loss on disaster
Provision for contract loss
Asset retirement obligations
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)
3/31/2024

49,822
2,491
－
1,407
1,196
1,231
2,768
3,922
519
72
129
5
15
469
63
24,12988,24448,093
4,234
15,000
2,225
1,247
3,195
3,241
4,656
186
77
202
14
－
499
－
21,061103,935

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

15,00063,262
4,814
251
135
53
1,671
224
13
67
1,741
19
6,220
93,475
197,411

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

10,00022,947
197,418(422)
229,944

4,053
(3)
5,630
1,889
11,56912,151
241,602478,342

9,221
(0)
8,446
1,645
19,312
10,691
259,948457,360

(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
Foreign exchange gains
Rental income from non-current assets
Outsourcing service income
Other
Total non-operating income
Non-operating expenses
Interest 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
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
Loss on sale of shares of subsidiaries and associates
Provision for loss on compensation for damage
Compensation for damage
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent
14

FY2022351,790
261,00990,781(Millions of yen)
FY2023341,990
242,470
99,51947,44029,00476,444
14,33643,28630,59573,882
25,637

184
574
1,592
－
591
938
2,332
6,214

234
564
905
679
616
548
1,852
5,401

1,592
565
3,610
5,768
14,783

1,333
－
3,413
4,746
26,292

80
145
110
85
22
5
20
469

69
609
106
－
108
－
－
894

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

50
83
20
41
762
25
197
148
－
1,330
25,856
4,741
3,703
8,445
17,411(340)
17,751

(3) Consolidated Statements of Comprehensive Income
9,362(Millions of yen)
FY2023
17,411

466
5
584
(637)

5,213
2
3,170
(245)

239

201

658
10,021

8,342
25,753

10,001
20

25,553200

FY2022
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 FlowsFY2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provisions
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries and associates
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
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 paid for damage
Income taxes refund (paid)
Net cash provided by (used in) operating activities

16

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)
FY202325,856
17,690
1,387
31
(190)
(799)
(527)
(19)
(609)
25
(905)
(106)
1,333
41
83
762
(108)
－
148
3,705
8,834
1,220
(1,475)
1,307
474
58,1601,301(1,362)108(124)(2,254)55,828(Millions of yen)
FY2023

FY2022

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
Proceeds from sale of shares of subsidiaries resulting in change inscope 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
Increase (decrease) in commercial papers
Proceeds from long-term borrowings
Repayments of long-term borrowings
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(1,301)
1,400(31,916)
135
(146)
718

(480)
250
(31,591)
962
(583)
1,368

(370)

－

－

1,604

(316)
190
110
(2,261)(33,757)

(128)
563
106
(2,478)(30,405)

2,116－
51,504(20,827)
4,103

1,726
15,000
6,582(61,396)－(312)(1,908)(5,036)(144)(3)(1,249)30,151445(14,961)
82,496(5,038)(145)(12)(1,313)(46,508)
1,461(19,623)
67,556

－

(27)

21

0

67,55647,905(5) Notes on Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Changes in significant subsidiaries during this period)
Not applicable.
(Changes in accounting policies that are difficult to distinguish from changes inaccounting estimates)(Changes in the depreciation method for Property, plant and equipment)
Tokuyama and the vast majority of its consolidated subsidiaries in Japan have to date largely
adopted the declining balance method when depreciating property, plant and equipment.
Effective from the first quarter of the fiscal year under review, the Company has changed its
accounting policy for depreciation, adopting the straight-line method. In light of the increased
monetary significance of depreciation expenses attributable to the capital investment
undertaken under Medium-Term Management Plan 2025, Tokuyama reexamined the method it
had previously adopted when depreciating property, plant and equipment. As far as the capital
investment undertaken to minimize the environmental impact of its operations while ensuring
the long-term, stable use of existing equipment and facilities, including investments in improving
processes, promoting efficient energy consumption, and renewing facilities, and to build the
supply system necessary to expand vigorously into domestic and overseas markets in growing
businesses are concerned, the Company has determined that the equal allocation of acquisition
costs over the useful life of each asset using the straight-line method will more accurately reflect
the actual status of operations.
As far as the consolidated fiscal year under review is concerned, operating profit increased¥3,311 million, and both ordinary profit and profit before income taxes climbed ¥3,360 million
compared with the corresponding amounts based on the previous depreciation method.

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,” “Cement,” “Electronic & Advanced
Materials” “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 bicarbonate, sodium
silicate, hydrogen, vinyl chloride monomer, polyvinyl chloride resin,
propylene oxide, and chlorinated solvents

CementCement, ready-mixed concrete, cement-type stabilizer, and resource
recycling businessElectronic &Advanced
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
Effective from the first quarter of the fiscal year under review, the Company has reviewed the nameof one of its reportable segments. In specific terms, the Electronic Materials Segment has beenrenamed the Electronic & Advanced Materials Segment. This change applies only to theaforementioned segment name and has no impact on segment information. The segment information
for the previous consolidated fiscal year reflects this change in segment name.
Fiscal 2022 (April 1, 2022 –March 31, 2023)

Chemicals

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

Reportable segments
Electronic&
Life
CementAdvanced Science
Materials

Eco
Business

Others*1

Total(Millions of yen)
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 (¥ 139,726 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 2023

(April 1, 2023 –March 31, 2024)

Chemicals

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

Reportable segments
Electronic&
Life
CementAdvanced Science
Materials

Eco
Business

Others*1

Total(Millions of yen)
Figures inquarterly
Adjustment
consolidated*2
incomestatement*3

115,401

66,30877,316

41,404

7,024

34,534

341,990-

341,990

193

878

652

20

368

9,119

11,231(11,231)-

115,594
11,53071,59067,187
6,710
71,993

77,9693,341
123,90241,424
8,476
47,203

7,392(102)
11,26443,653
1,476
60,316353,222
31,432386,270(11,231)(5,795)71,089341,990
25,637457,360

2,350

3,319

4,862

1,171

576

3,071

15,3502,339

17,690

2,986

4,524

9,500

3,827

547

2,927

24,312

6,481

30,794*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 (¥ 115,136million).
*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.

(Changes in the depreciation method for Property, plant and equipment)
Tokuyama and its consolidated subsidiaries in Japan have to date largely adopted the decliningbalance method when depreciating property, plant and equipment. Effective from the fiscal year
under review, the Company has changed its accounting policy for depreciation, adopting the straightline method. As a result, operating profit in the fiscal year under review increased ¥ 821 million in
the Chemicals segment, ¥ 979 million in the Cement segment, ¥ 530 million in the Electronic &Advanced Materials segment, ¥ 191 million in the Life Science segment, ¥ 105 million in the Eco
Business segment, and ¥ 218 million in the Others segment compared with the amounts calculatedusing the previous method. The total increase in operating profit after taking into account Companywide expenses was ¥ 3,311 million.

21

(7) Material Subsequent Event(Posting of extraordinary income)On June 29, 2023, the Company had executed an integration agreement with Rengo Co., Ltd.
(hereinafter referred to as “Rengo”) and Mitsui Chemicals, Inc. (hereinafter referred to as “Mitsui
Chemicals”) to merge Sun-Tox Co., Ltd., (hereinafter referred to as “Sun-Tox”), a joint venture of
Rengo and the Company and an equity method affiliate of the Company, with Mitsui Chemicals
Tocello, Inc. (“Mitsui Chemicals Tocello”). Under the terms of the agreement, an absorption-typemerger have taken effect on April 1, 2024, with Mitsui Chemicals Tocello as the surviving company
and Sun-Tox as the company being merged. As a result , in the first quarter of the fiscal year ending
March 31, 2025, the Company will post around 2,313 million yen of extraordinary income for thedifference between the book value of Sun-Tox shares on a consolidated basis and the consideration
received which is the shares of Mitsui Chemicals Tocello. As a result, Sun-Tox will removed fromthe Company’s scope of the company’s equity method affiliates as of April 1, 2024.
In addition, Mitsui Chemicals Tocello changed its name to RM Tocello Corporation as of April 1,
2024.

22