Summary of Consolidated Financial Statements for the Second Quarter Fiscal 2015 (JPGAAP)
October 30, 2015
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL http://www.tokuyama.co.jp/eng/)
Local Code :4043
Representative:
Hiroshi Yokota, 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 13, 2015
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, 2015 (Apr. 1, 2015 – Sept. 30, 2015)(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 2015
149,1283.6
7,549(28.7)
5,262(36.5)
Second Quarter Fiscal 2014
143,880
6.6
10,590
35.6
8,284
35.9
(Note) Comprehensive income: 2nd Q FY15: 1,924 million yen [-%] 2nd Q FY14: (79,135) million yen [-%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Second Quarter Fiscal 2015
Second Quarter Fiscal 2014

2,783
(80,504)-

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

8.00
(231.40)-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

Sept. 30, 2015
Mar. 31, 2015

531,877
171,078554,527
169,445
Sep. 30, 2015: 163,986 million yen(Reference) Shareholders' equity:

30.8
471.4229.3
467.36
Mar. 31, 2015: 162,577 million yen

2. Dividends（Period）

1st quarter(yen)

Fiscal 2014, ended
Mar 31, 2015
Fiscal 2015, ending
Mar 31, 2016
Fiscal 2015
（Forecast）

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

-

0.00

-

0.00

(yen)

Total

(yen)

(yen)

-

0.00

0.00

-

0.00

0.00

(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for fiscal 2015 (April 1, 2015 - March 31, 2016)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating income Ordinary income Profit
per shareowners of parent(millions

of
yen)

[%]

(millions

of
yen)

[%]

(millions

of
yen)

[%]

Fiscal 2015
306,000
1.3
20,0002.4
14,0008.4(Note) Revision of the latest consolidated performance forecast: Yes(millionsofyen)

14,000

[%]

－

(yen)

40.25

*The Company announced the release, “Notice concerning Difference between Performance Forecast and Actual
Results for First Half Fiscal 2015, and Revision of Performance Forecast for Full Fiscal 2015,” on Oct. 30, 2015.
-1-

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2015 – Sept. 30, 2015): 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, 2015 – Sept. 30, 2015).
(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:
No
iii.Changes in accounting estimates:No
No
iv. Retrospective restatements:(4) Number of shares issued (in common stock)i.

Number of shares issued at end of period Second Quarter
Fiscal 2015:(including treasury stock):ii.

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

Second Quarter

Fiscal 2015:
Second Quarter

Fiscal 2015:

349,671,876
1,816,246
347,859,153

Fiscal 2014: 349,671,876
Fiscal 2014:
Second Quarter

Fiscal 2014:

1,805,814
347,895,825(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 results for this quarter…………………

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

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

P. 6…………………

P. 7

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

P. 8(1) Consolidated Quarterly Balance Sheets…………………

P. 8(2) Consolidated Quarterly Statements of Income…………………

P. 10(3) Consolidated Quarterly Statements of Comprehensive Income…………………

P. 11(4) Consolidated Quarterly Statements of Cash Flows…………………

P. 12(5) 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 2015 (accumulated figures, April 1, 2015 September 30, 2015) are summarized as follows:(Unit: Millions of yen)
Net sales

Operating income

Ordinary income

Profit attributableto owners ofparentSecond Quarter Fiscal 2015

149,128

7,549

5,262

2,783

Second Quarter Fiscal 2014

143,880

10,5908,284(80,504)

3.6(28.7)(36.5)－

Rate of change (%)

Net sales
Consolidated net sales increased 3.6%, or ¥5,247 million compared with the corresponding
period of the previous year, to ¥149,128 million. Despite weaker selling prices of petroleum
chemicals on the back of a downturn in domestic naphtha prices, this was largely attributable tothe upswing in sales volumes of soda ash and calcium chloride as well as solar-grade
polycrystalline silicon.
Cost of sales
Cost of sales increased 8.0%, or ¥8,152 million compared with the corresponding period of theprevious year, to ¥110,197 million. Despite a downturn in raw material costs as a result of thedrop in domestic naphtha prices, this was due mainly to the increased burden of depreciation
expenses at Tokuyama Malaysia Sdn. Bhd.
SG&A expenses
SG&A expenses increased 0.4%, or ¥136 million compared with the corresponding period of
the previous year, to ¥31,382 million. Despite our efforts to reduce Companywide expenses,
this increase primarily reflected the increase in distribution costs associated with the increase insales volumes of such products as soda ash and calcium chloride.
Operating income
Operating income decreased 28.7%, or ¥3,041 million compared with the corresponding periodof the previous year, to ¥7,549 million. Despite profitability improvement of petroleum
chemicals impacted by the drop in domestic naphtha prices and the weaker yen, this was largely
attributable to the increased burden of depreciation expenses at Tokuyama Malaysia Sdn. Bhd.
-2-

Non-operating income/expenses, Ordinary income
Non-operating income/expenses improved ¥19 million compared with the corresponding periodof the previous year.
As a result of the above, ordinary income decreased 36.5%, or ¥3,022 million compared with thecorresponding period of the previous year, to ¥5,262 million.
Extraordinary income/losses, Income/loss before income taxes, Profit/loss, Profit/loss
attributable to owners of parent
Extraordinary income/losses improved by ¥88,556 million compared with the corresponding
period of the previous year, from a loss of ¥87,909 million recorded in the corresponding periodof the previous year.
As a result of the above, income/loss before income taxes improved by ¥85,533 million
compared with the corresponding period of the previous year, to income of ¥5,908 million.
After deducting income taxes calculated in an appropriate way, the Company recorded profit of¥3,288 million, which improved by ¥84,064 million compared with the corresponding period of
the previous year.
Profit/loss attributable to owners of parent improved by ¥83,287 million compared with thecorresponding period of the previous year, to profit of ¥2,783 million.

-3-

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

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

28,95926,791

169,122(19,994)

149,128

38,69830,08824,903

161,788(17,907)

143,880

10.0

(3.8)

7.6

4.5

-

3.6

Reportable segment

Second Quarter
Fiscal 2015
Second Quarter
Fiscal 2014
Rate of change (%)

Chemicals

Specialty
Products

Cement44,043

26,77042,55743,99024,1070.1

11.0Life &
Amenity

Operating income (loss)(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

Reportable segment
Chemicals

Specialty
Products

CementLife &
Amenity

Others

Total

Second Quarter
Fiscal 2015
Second Quarter
Fiscal 2014

3,611

(2,981)

2,285

3,606

2,530

9,052

(1,502)

7,549

2,460

2,704

2,211

2,586

2,695

12,657(2,066)

10,590Rate of change (%)

46.8

-

3.3

39.4

(6.1)

(28.5)-(28.7)(Note) Sales and operating income (loss) in each segment include inter-segment transactions.

Chemicals
Sales of caustic soda were down compared with the corresponding period of the previous year.
While domestic sales volumes were steady, this decrease was attributable to weak trends in selling
prices.
With regard to vinyl chloride monomer (VCM), profitability improved on the back of a drop in
raw material costs due to the downturn in domestic naphtha prices.
Sales of polyvinyl chloride (PVC) declined compared with the corresponding period of theprevious year. Although housing starts were on a recovery track, this was due to the decline insales volumes owning mainly to continued inventory adjustments with respect to the supply
chain.
With regard to soda ash and calcium chloride, sales increased compared with the corresponding
period of previous year. This reflected the startup of operations by Tokuyama & Central Soda
Inc. in October 2014.
As a result of the above, segment net sales increased 0.1% compared with the corresponding
period of the previous year, to ¥44,043 million and operating income increased 46.8% to ¥3,611
million. The segment reported higher earnings on higher sales.
-4-Specialty Products
Sales of semiconductor-grade polycrystalline silicon were down compared with thecorresponding period of previous year. Despite firm trends in demand for mobile terminals
including smartphones, the decline was due to the downturn in sales volumes on the back ofsuch factors as inventory adjustments with respect to the supply chain.
While sales of solar-grade polycrystalline silicon increased on the back of higher sales volumes,reflecting the start of sales and marketing by Tokuyama Malaysia Sdn. Bhd. in October 2014,
earnings deteriorated due to such factors as the increased burden of depreciation expenses.
Sales of fumed silica increased compared with the corresponding period of previous year due to
steady sales of such applications as a polishing material for semiconductors.
With regard to high-purity chemicals for electronics manufacturing, sales increased comparedwith the corresponding period of the previous year, owing to steady sales in such applications as
semiconductor production.
As a result of the above, the segment reported a loss on higher sales. Segment net sales increased
11.0% compared with the corresponding period of the previous year, to ¥26,770 million.
However, this segment incurred an operating loss of ¥2,981 million during the period underreview.

CementIn the cement business, sales declined compared with the corresponding period of the previous
year, as a result of decreased sales volumes. This decrease reflected sluggish trends in both public
and private-sector demand impacted by such factors as the decrease in public works and delays inconstruction attributable to unseasonably bad weather in Japan.
In the recycling and environment-related business, the Company accepted a higher volume ofwaste including construction waste soil compared with the corresponding period of the previous
year. As a result of this, sales increased from the corresponding period of the previous year.
With regard to consolidated subsidiaries, sales increased compared with the corresponding periodof the previous year, because sales volumes of such products as ready mixed concrete forlarge-scale projects increased in certain areas.
As a result of the above, segment net sales increased 10.0% compared with the corresponding
period of the previous year, to ¥42,557 million and operating income increased 3.3% to ¥2,285
million. The segment reported higher earnings on higher sales.

Life & Amenity
Sales of active pharmaceutical ingredients decreased compared with the corresponding period of-5-the previous year, owing to the drop in sales volumes of products used for genericpharmaceuticals.
With regard to plastic lens-related materials, sales volumes of photochromic dye materials foreyeglass lenses increased. As a result of this, sales increased compared with the corresponding
period of the previous year.
With regard to microporous film, 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, sales declined compared with the corresponding period of theprevious year. Despite firm trends in sales mainly for application in packaging materials for goods
sold at convenience stores, this decrease was the result of weak trends in selling prices on theback of the decline in domestic naphtha prices.
With regard to dental materials and equipment, sales increased compared with the corresponding
period of the previous year, due to increased sales volumes of new products and products foroverseas markets.
With regard to medical diagnosis systems, sales were up compared with the corresponding periodof the previous year. This was due to the upswing in large-scale orders in Japan for blood testingproducts.
As a result of the above, segment net sales decreased 3.8% compared with the corresponding
period of the previous year, to ¥28,959 million, while operating income increased 39.4% to¥3,606 million. The segment reported higher earnings on lower sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of September 30, 2015, total assets amounted to ¥531,877 million, a decrease of ¥22,649
million compared with those as of March 31, 2015.
This decrease largely reflected the decline in the balances of cash and deposits, machinery,equipment and vehicles, and notes and accounts receivable―trade of ¥16,510 million, ¥3,159
million, and ¥2,667 million, respectively.
Total liabilities amounted to ¥360,799 million, down ¥24,283 million compared with those as ofMarch 31, 2015.
This largely reflected the downturn in the balances of long-term loans payable and current
portion of long-term loans payable, bonds payable and current portion of bonds, and allowance
for loss on purchase agreements of ¥10,859 million, ¥5,000 million, and ¥3,043 million,
respectively.
-6-

Net assets totaled ¥171,078 million, an increase of ¥1,633 million compared with those as ofMarch 31, 2015.
The principal movement was the increase in retained earnings of ¥2,779 million.

(Status of cash flows)
As of September 30, 2015, cash and cash equivalents were ¥102,160 million, a decrease of¥13,961 million compared with those as of March 31, 2015.
Net cash provided by operating activities totaled ¥10,298 million, a decrease of ¥6,251 million
compared with the corresponding period of the previous year.
Principal items included depreciation expenses of ¥10,407 million.
Net cash used in investing activities totaled ¥6,286 million, an increase of ¥23,189 million
compared with the corresponding period of the previous year.
Major contributory factor was payments for purchases of property, plant and equipment of¥6,728 million.
Net cash used in financing activities amounted to ¥17,859 million, a decrease of ¥71,057 million
compared with the corresponding period of the previous year.
This was primarily attributed to repayment of long-term loans payable of ¥12,275 million andredemption of bonds of ¥5,000 million.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Based on the current performance trend, the Company has revised the performance forecast,announced on July 31, 2015. For further details, please see the Company’s news release, “Noticeconcerning Difference between Performance Forecast and Actual Results for First Half Fiscal
2015, and Revision of Performance Forecast for Full Fiscal 2015,” dated October 30, 2015.
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. Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen
3/31/2015
9/30/2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables and investment assets
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-8-61,364
69,37130
55,053
15,456
11,60618,026
4,772
8,396
(103)
243,975

44,85366,70444
57,603
17,481
12,19017,453
4,825
8,403
(147)
229,413

137,347(74,090)
63,257546,388(401,461)
144,927
23,261(20,974)
2,286
33,149
2,135
(936)
1,199
8,511
253,331

137,782(75,492)
62,289549,197(407,429)
141,767
23,262(21,012)2,250
33,031
2,167
(924)
1,242
7,724
248,305

5,097
44
4,641
9,784

4,491
43
3,690
8,224

31,062
3,248
669
8,765
4,015
(22)
(303)
47,436
310,552
554,527

29,656
3,135
655
9,248
3,557
(22)
(297)
45,933
302,464
531,877

Millions of yen
3/31/2015
9/30/2015
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 loss on compensation for damage
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
Non-controlling interests
Total net assets
Total liabilities and net assets-9-40,567
12,212
3,000
25,110
5,000
340
1,318
－
1,911
1,284
132
50
3,183
23,186117,298

39,593
10,7093,000
23,047
10,000
347
2,180
3
2,066
1,228
39
－
2,652
20,733
115,601

45,000191,552
981
6,409
226
3,458
574
91
6,250
1,162
5
12,071
267,783
385,082

35,000182,756
1,005
5,938
197
3,478
464
90
3,737
1,206
5
11,316245,197
360,799

53,45857,67039,286(1,434)
148,981

53,45857,67042,066(1,435)
151,759

5,829
330
4,196
3,239
13,596
6,868
169,445554,527

4,890
212
3,887
3,237
12,227
7,092
171,078
531,877

(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 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
Cost of idle operations
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchaseState subsidy
Reversal of provision for loss on purchase contract
Other
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on disaster
Loss on reduction of non-current assets
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
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent-10-

Millions of yen
Q2 FY2014
Q2 FY2015
143,880
149,128
102,044
110,197
41,83638,931
18,057
13,18831,245
10,59018,78912,592
31,382
7,549

48
349
392
－
209
558
1,559

64
273
379
432
202
521
1,873

2,309
323
1,232
3,865
8,284

2,400
484
1,275
4,160
5,262

47
5
－
－
－
52

101
－
19
1,270
16
1,408

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

556
2
23
149
－
－
30
762
5,908
2,619
3,288
505
2,783

(3) Consolidated Statements of Comprehensive Income

Profit (loss)
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
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-11-

Millions of yen
Q2 FY2014
Q2 FY2015(80,775)
3,288
1,821
(490)
266
57
(13)
1,640
(79,135)

(935)
(118)
(310)
(2)
1
(1,364)
1,924(78,854)
(280)

1,414
509

(4) Consolidated Statements of Cash Flows

Millions of yen
Q2 FY2014
Q2 FY2015

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 shares of subsidiaries and associates
Share of (profit) loss of entities accounted for using equity method
Subsidy income
Interest expenses
Loss on reduction of non-current assets
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
Payments of long-term loans receivableCollection of long-term loans receivable
Proceeds from subsidy income
Payments for transfer of business
Other, net
Net cash provided by (used in) investing activities-12-(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)
16,5495,908
10,407(109)(3,043)
(12)
48
(490)
(338)
302
－
(101)
－
(379)
(19)
2,400
23
556
149
2,592
(1,919)(284)(900)(1,346)116
13,560864(2,456)(1,670)
10,298(18)389(27,571)
70
(5)
30
(13)
126
－
(3,750)1,266(29,476)(18)
17(6,728)
638
(4)
26
(6)
120
19
－
(350)
(6,286)

Millions of yen
Q2 FY2014
Q2 FY2015
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Cash 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 resulting from change ofscope of consolidation
Increase (decrease) in cash and cash equivalents resulting from change infiscal period of consolidated subsidiaries
Cash and cash equivalents at end of period

-13-

2,494
55,340(3,496)－(1,125)
(246)
(72)
304
53,197230
40,501
69,973(1,198)1,094(12,275)(5,000)
(1)
(287)
(2)
(188)
(17,859)(141)(13,989)
116,122

10

27

(8)

－

110,476

102,160

(5) Segment information
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. Specifically, 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)
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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Second Quarter Fiscal 2015 (accumulated figures, April 1, 2015– September 30, 2015)
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 (loss)

Chemicals

Specialty
Products

Cement43,714329
44,043
3,611

19,211
7,559
26,770(2,981)42,472
84
42,5572,285Life &
Amenity

27,851
1,107
28,9593,606

Others*1

Total

15,87910,912
26,791
2,530

149,128
19,994
169,122
9,052

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(19,994)(19,994)(1,502)

149,128
149,128
7,549*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 income (loss) adjustment amount consists mainly of basic R&D expenses that are notallocable to a specific reportable segment.
*3 With regard to segment income (loss), 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 business combination)
Effective from the first quarter of fiscal 2015, the Company adopted the “Accounting Standard for Business
Combination,” and has changed its accounting method. Under the new accounting policy, the difference
arising from changes in the Company’s ownership interests in its controlled subsidiaries was recorded ascapital surplus, and at the same time, the expenses related to the acquisitions are recorded as expenses in the
consolidated fiscal year in which they arise. Furthermore, regarding a business combination that is
implemented after the beginning of the first quarter of fiscal 2015, in line with the newly-adopted accounting
standard, the reallocation of acquisition costs resulting from the settlement of a provisional accounting
treatment is reflected in the quarterly consolidated financial statements for the consolidated quarterly fiscal
period during which the business combination occurs. The effect of these changes 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 Specialty Products segment, the Company recorded impairment loss of ¥389 million during the second
quarter fiscal 2015 (April 1, 2015 to September 30, 2015).
During the second quarter fiscal 2015 (April 1, 2015 to September 30, 2015), impairment losses that were notallocated to the reportable segments amounted to ¥167 million.

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