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

October 28, 2022
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
December 1, 2022
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 Sep. 30, 2022 (Apr. 1, 2022 – Sep. 30, 2022)(1) Performance

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

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

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

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

Second Quarter Fiscal 2022
166,37025.4
8,296(28.9)
10,870(9.4)
Second Quarter Fiscal 2021
132,660(7.4)
11,665(9.9)
11,998(4.0)(Note) Comprehensive income: 2nd Q FY22: 7,608 million yen [(19.5)%] 2nd Q FY29,454 million yen [(19.2)%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Second Quarter Fiscal 2022
Second Quarter Fiscal 2021

6,565
9,257

(29.1)(7.4)

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

91.25
128.61-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

September 30, 2022
March 31, 2022

488,569
433,210(Reference) Shareholders' equity:

1st quarter

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

47.0
51.8

Sep. 30, 2022: 229,591 million yen

2. Dividends（Period）

241,702
232,917(yen)

Mar. 31, 2022: 224,506 million yen

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

-

35.00

-

35.00

(yen)

3,190.93
3,120.25

Total

(yen)

(yen)

-

35.00

70.00

-

35.00

70.00

(Note) Revision of the latest dividends forecast: No

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

Fiscal 2022

(millions ofyen)

370,000[%]

25.9(millions of
yen)

[%]

21,000 (14.4)(millions ofyen)

24,000[%](7.2)(millions ofyen)

15,000[%](46.4)(yen)

208.47(Note) Revision of the latest consolidated performance forecast: Yes* The Company announced the release, “Notice concerning Revision of Performance Forecast for Fiscal 2022,” on Oct. 28, 2022.

1

*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 “2. Quarterly Consolidated Financial Statements and (4) Notes on
Quarterly Consolidated Financial Statements (Changes in significant subsidiaries during this period)” on page
13 of the Accompanying Materials to this Summary of Quarterly Consolidated Financial Statement.

(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (5) Notes on
Quarterly Consolidated Financial Statements (Application of accounting methods specific to the preparation of
the quarterly consolidated financial statements)” on page 13 of the Accompanying Materials to this Summaryof Quarterly Consolidated Financial Statement.
(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes in accounting policy by revision of accounting standards:
ii. Changes in accounting policy other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:(4) Number of shares issued (in common stock)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:

2nd Quarter
Fiscal 2022:
2nd Quarter
Fiscal 2022:
2nd Quarter
Fiscal 2022:

No
No
No
No

72,088,327

Fiscal 2021:

72,088,327

137,033

Fiscal 2021:

136,954

71,951,355

2nd Quarter
Fiscal 2021:

71,976,167(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures in linewith the Financial Instruments and Exchange Act. At the point of disclosure of this summary of quarterly
consolidated financial statements, the quarterly consolidated financial statements review procedures in line with the
Financial Instruments and Exchange Act are underway.

(Note) Cautions pertaining to appropriate use of performance forecast and other particular items(Cautions related to Forward-looking statement)
The performance forecast and other forward-looking statements contained in this material have been prepared on
the basis of information available at this point and certain assumptions which are judged to be rational, and may
be substantially different from the actual performance because of various factors that may arise from now on.
(Access to supplementary explanations on business results)
The Company also provides supplementary materials “Presentation for IR Meeting” through TDnet at the same
date.

2

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

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

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

P. 6…………………

P. 6

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

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

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

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

P. 10(4) Consolidated Statements of Cash Flows…………………

P. 11(5) Notes on Quarterly Consolidated Financial Statements…………………

P. 13(6) Segment Information…………………

P. 14(3) Explanation concerning information related to future
prediction such as consolidated performance forecast

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

Ordinary profit

Profitattributable toowners ofparentSecond Quarter Fiscal 2022

166,370

8,296

10,8706,565

Second Quarter Fiscal 2021

132,660

11,665

11,998

9,257

25.4

(28.9)(9.4)(29.1)

Rate of change (%)

Net sales
Consolidated net sales increased 25.4%, or ¥ 33,710 million compared with the corresponding
period of the previous year, to ¥ 166,370 million, largely reflecting progress made in passing
along elevated fuel and raw materials prices to sales prices.
Cost of sales
Cost of sales increased 38.8%, or ¥ 33,663 million compared with the corresponding period of
the previous year, to ¥ 120,528 million. This was due mainly to a upturn in raw material and fuelcosts.
SG&A expenses
SG&A expenses increased 10.0%, or ¥ 3,415 million compared with the corresponding period of
the previous year, to ¥ 37,545 million mainly due to increases in logistics costs and R&D
expenses.
Operating profit
Operating profit decreased 28.9%, or ¥ 3,368 million compared with the corresponding periodof the previous consolidated fiscal year, to ¥ 8,296 million. This decrease in operating profit was
mainly due to higher logistics costs, and raw material and fuel costs.

2

Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥ 2,240 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, ordinary profit decreased 9.4 %, or ¥ 1,128 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 10,870 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses deteriorated by ¥ 2,189 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, profit before income taxes decreased 23.6%, or ¥ 3,317 million
compared with the corresponding period of the previous consolidated fiscal year, to ¥ 10,713
million.
Profit after deducting income taxes calculated in an appropriate way decreased 28.8%, or ¥ 2,657
million compared with the corresponding period of the previous consolidated fiscal year, to¥ 6,572 million.
Profit attributable to owners of parent decreased 29.1%, or ¥ 2,691 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 6,565 million.

3

(Operating results by segment)
Second Quarter
Fiscal 2022

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

Operating
Profit(loss)

Chemicals

57,7894,754

43,891

Cement28,861(1,811)

Electronic
Materials

41,341

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

Operatingprofit

5,578

31.7

(14.8)

24,964

5

15.6

-

3,363

33,824

4,073

22.2

(17.4)

18,011

3,316

15,395

2,634

17.0

25.9

Eco Business

6,336

298

4,478

(354)

41.5

-

Others

20,379853

16,701

1,883

22.0

(54.7)

Total

172,719

10,773

139,256

13,81924.0(22.0)

Adjustment(6,349)(2,476)(6,596)(2,154)--

Figures in quarterly
consolidated profit
166,370
8,296
132,660
11,66525.4
statement(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

(28.9)

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.
Downturn in vinyl chloride monomer and vinyl chloride resin earnings was due to rising
manufacturing costs as a result of higher raw material and fuel costs.
As a result of the above, segment net sales increased 31.7% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 57,789 million and operating profit
decreased 14.8 % to ¥ 4,754 million. The segment reported lower earnings on higher sales.
CementCement earnings deteriorated despite shipments of being in line with the corresponding periodof the previous year and revision of sales prices. This downturn largely reflected manufacturingcosts rising as a result of higher raw material costs.
As a result of the above, segment net sales increased 15.6% compared with the corresponding
period of the previous year, to ¥ 28,861 million and operating loss amounted to ¥ 1,811 million(Posted operating profit of ¥ 5 million in the corresponding period of the previous year).

4Electronic Materials
Earnings for semiconductor-grade polycrystalline silicon decreased despite revising sales prices.
This downturn in earnings largely reflected rising manufacturing costs as a result of higher raw
material and fuel costs.
In IC chemicals, although demand for semiconductor applications was solid and revision of sales
prices, earnings decreased largely due to higher raw materials prices.
In fumed silica, earnings increased despite higher raw material prices, largely owing to revisions todomestic sales price and higher export prices.
Thermal management materials earnings were in line with the corresponding period of theprevious year. Although sales volume was solid, this largely reflected higher R&D expenses.
As a result of the above, segment net sales increased 22.2% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 41,341 million and operating profit
decreased 17.4% to ¥ 3,363 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 17.0% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 18,011 million and operating profit increased
25.9% to ¥ 3,316 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, earnings were all in line with the corresponding period of theprevious year as a result of steady acceptance of waste gypsum board, which offset mainly higher
fuel costs.
Segment net sales increased 41.5% compared with the corresponding period of the previous year,
to ¥ 6,336 million and operating profit amounted to ¥ 298 million (posted operating loss of¥ 354 million in the corresponding period of the previous year).

5(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of September 30, 2022, total assets amounted to ¥ 488,569 million, an increase of ¥ 55,359
million compared with those as of March 31, 2022.
This increase primarily reflects the increase of raw materials and supplies, cash and deposits,
property, plant and equipment, merchandise and finished goods, and work in process of ¥ 18,142
million, ¥ 16,935 million, ¥ 7,107 million, ¥ 6,269 million and ¥ 3,219 million respectively.
Total liabilities amounted to ¥ 246,867 million, up ¥ 46,574 million compared with those as ofMarch 31, 2022.
The principal factor is the increase in long-term loans borrowings and current portion of
long-term loans borrowings and notes and accounts payable – trade of ¥ 31,338 million and¥ 13,906 million respectively.
Net assets totaled ¥ 241,702 million, an increase of ¥ 8,784 million compared with those as ofMarch 31, 2022.
This mainly reflected the increase of ¥ 4,040 million in retained earnings primarily due to posting
profit attributable, and the increase of ¥ 3,699 million in non-controlling interests.

(Status of cash flows)
As of September 30, 2022, cash and cash equivalents were ¥ 99,516 million, a increase of¥ 17,020 million compared with those as of March 31, 2022.
Net cash provided by operating activities totaled ¥ 349 million, a decrease of ¥ 16,010 million
compared with the corresponding period of the previous year.
This decrease primarily reflects the increase in inventories of ¥ 27,267 million and the increase inother current assets of ¥ 5,502 million, despite positive factors, such as profit before income
taxes of ¥ 10,713 million, depreciation of ¥ 9,725 million and increase in trade payables of¥ 13,286 million.
Net cash used in investing activities totaled ¥ 16,270 million, a decrease of ¥ 658 million
compared with the corresponding period of the previous year.
Major contributory factor was payments for purchases of property, plant and equipment of¥ 14,853 million.
Net cash provided in financing activities amounted to ¥ 31,792 million, an increase of ¥ 40,001
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 repayments
6

of long-term borrowings of ¥ 20,493 million and dividends paid of ¥ 2,517 million.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Based on the current raw material and fuel prices and other factors, the Company has revised theperformance forecast, announced on April 28, 2022. For further details, please see the Company’s
news release, “Notice concerning Revision of Performance Forecast for Fiscal 2022,” dated
October 28, 2022.
The performance forecast has been prepared on the basis of information available at this pointand certain assumptions which are judged to be rational, and may be substantially different fromthe actual performance because of various factors that may arise from now on

7

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
9/30/2022

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

8

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

100,051
7,744
67,65011
25,463
17,48340,40812,123(73)
270,864

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
139,602111,706(79,924)
31,781
482,763(430,738)
52,02524,146(20,927)
3,219
32,731
8,932(3,794)
5,137
21,815
146,710

68
25
2,588
2,682

428
16
2,832
3,277

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

28,1302,037
21,794
10,8294,970(45)67,717217,705
488,569

3/31/2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Provision for repairs
Provision for decommissioning and removal
Provision for product warranties
Provision for loss on compensation for damage
Provision for environmental measures
Provision for restructuring
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
9(Millions of yen)
9/30/2022

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

62,961
709
811
1,142
3,755
3,123
4,404
874
38
109
4
－
63
19,791
97,791

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

15,000
119,302
3,544
224
178
55
1,473
631
71
118
2,139
13
6,322
149,075
246,867

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

10,00023,451
184,575(412)
217,614

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

2,711
(5)
6,879
2,391
11,976
12,111
241,702
488,569

(2) Quarterly Consolidated Statements of Income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Outsourcing service income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Fiduciary obligation expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Compensation for damage income
Gain on forgiveness of debts
Gain on insurance claims
Gain on step acquisitions
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
Retirement benefit expenses
Compensation for damage
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

10

Q2 FY2021 YTD
132,660
86,86545,795(Millions of yen)
Q2 FY2022 YTD
166,370
120,528
45,842

21,797
12,332
34,13011,66523,503
14,04137,545
8,296

70
289
534
119
296
1,947
3,256

53
370
1,065
1,934
641
1,577
5,642

704
228
1,990
2,923
11,998

779
491
1,797
3,068
10,870

313
1
75
2,178
－
－
－
2,568

41
11
42
－
19
16
5
138

35
3
77
67
279
－
70
2
536
14,031
4,801
9,229
(27)
9,257

－
14
17
26
174
61
－
－
295
10,713
4,140
6,572
7
6,565

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

11

Q2 FY2021 YTD
9,229(Millions of yen)
Q2 FY2022 YTD
6,572

(266)
(39)
449
15

(874)
3
1,816
(114)

65

204

224
9,454

1,035
7,608

9,470
(16)

7,609
(1)

(4) Consolidated Statements of Cash Flows(Millions of yen)
Q2 FY2021 YTD Q2 FY2022 YTD
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
Loss (gain) on step acquisitions
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 claimsCompensation for damage income
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
Income taxes refund (paid)
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 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

12

14,031
9,075
(63)
70
(366)
(359)
80
(278)
(1)
(534)
－
(75)
704
67
3
279
－
(2,178)70
3,669(10,103)
(808)
7,496
(2,256)(16)
18,508881(706)－(2,323)
16,35910,713
9,725
(855)
65
(520)
(423)
(758)
(41)
(11)
(1,065)
(5)
(42)
779
26
14
174
(16)
－
－
3,421
(27,267)(5,502)
13,286
686
103
2,487
1,096
(718)
16
(2,532)349(9)
26(16,204)
345
(384)
303
－
(1)
92
75
(1,170)(16,928)(26)
110(14,853)
59
(329)
59
(140)
(43)
94
42
(1,243)(16,270)

(Millions of yen)
Q2 FY2021 YTD Q2 FY2022 YTD
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 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 the accounting
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

13(1,200)1,184(6,358)1,514

240
51,504(20,493)
4,103

－

(304)

(2,516)
(120)
(99)
(612)
(8,209)62(8,715)83,050(2,517)
(61)
(1)
(678)
31,792
1,127
16,99882,496

870

－

－

21

75,20599,516

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

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

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

Sales
Sales to customers

Inter-segment
sales/transfer

Total

Chemicals

43,703

188

43,891

5,578

Cement24,560404

24,964

5

Electronic
Materials

33,116707

33,824

4,073

Life Science

15,34451

15,3952,634

Eco Business

4,374

104

4,478

(354)

Others*1

11,561

5,139

16,701

1,883

Total

132,660

6,596

139,256

13,819-(6,596)(6,596)(2,154)

132,660-

132,660

11,665Adjustment*2
Figures in quarterly
consolidated profit
statement*3*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment profit (loss) adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment and the amount of inter-segment eliminations.
*3 With regard to segment profit (loss), operating profit in the quarterly consolidated statement of profit has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others” segment’s
profit.
*4 Net sales are not presented separately from earnings derived from contracts with customers and other earnings
because the amount of other earnings is insignificant.

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

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

Sales
Sales to customers

Inter-segment
sales/transfer

Total

Chemicals

57,594

194

57,7894,754

Cement

28,617244

28,861(1,811)

Electronic
Materials

41,021

319

41,341

3,363

Life Science

17,99416

18,011

3,316

Eco Business

6,227

108

6,336

298

Others*1

14,914

5,465

20,379853

Total

166,370

6,349

172,719

10,773-(6,349)(6,349)(2,476)

166,370-

166,370

8,296

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

2. Information on amortization of goodwill and unamortized balance by reportable segment
In the Life Science segment, the Company acquired shares of ASM Inc. so that it would become theCompany’s subsidiary.
During the second quarter fiscal 2022 (April 1, 2022 – September 30, 2022), the amount of increasein goodwill brought by the said event was ¥370 million.

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