Summary of Consolidated Financial Statements for the Second Quarter Fiscal 2016 (JPGAAP)
October 28, 2016
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.
+81-3-5207-2552
Scheduled date for the filing of the quarterly consolidated financial statements : November 10, 2016
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, 2016 (Apr. 1, 2016 – Sept. 30, 2016)(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 2016
142,593(4.4)
18,025138.8
14,509
175.7
Second Quarter Fiscal 2015
149,1283.6
7,549(28.7)
5,262(36.5)(Note) Comprehensive income: 2nd Q FY16: 16,974 million yen [782.0%] 2nd Q FY15: 1,924 million yen [-%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Second Quarter Fiscal 2016
Second Quarter Fiscal 2015

18,449
2,783

562.9
-

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

52.28
8.00

45.24
-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

Sept. 30, 2016
Mar. 31, 2016

388,201
401,342
Sep. 30, 2016:(Reference) Shareholders' equity:

96,01460,20587,639 million yen

22.6
12.8
Mar. 31, 2016:

193.71147.9851,473 million yen

2. Dividends（Period）

1st quarter(yen)

Fiscal 2015, ended
Mar. 31, 2016
Fiscal 2016, ending
Mar. 31, 2017
Fiscal 2016
（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 2016 (Apr. 1, 2016 – Mar. 31, 2017)(% 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 2016
291,000 (5.2)
33,000 43.0
27,000 52.3
(Note) Revision of the latest consolidated performance forecast: Yes(millionsofyen)

21,000

[%]

－

(yen)

58.18

*The Company announced the release, “Notice concerning Difference between Performance Forecast and Actual
Results for First Half Fiscal 2016, and Revision of Performance Forecast for Full Fiscal 2016,” on Oct. 28, 2016.
1

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2016 – Sept. 30, 2016): 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, 2016 – Sept. 30, 2016).
(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 2016:(including treasury stock):ii.

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

Second Quarter

Fiscal 2016:
Second Quarter

Fiscal 2016:

349,671,876
1,839,937
347,835,869

Fiscal 2015: 349,671,876
Fiscal 2015:
Second Quarter

Fiscal 2015:

1,832,788
347,859,153(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

(Reference) Dividends for Class A shares
Dividends per share related to class shares are as follows
Annual dividends per share
Class A shares
1st quarter2nd quarter3rd quarter
Year-end(Period)
(yen)
(yen)
(yen)
(yen)
Fiscal 2015, ended――――
Mar 31, 2016
Fiscal 2016, ending――
Mar 31, 2017
Fiscal 2016―
38,082.20(Forecast)

3

Total

(yen)
―

38,082.20

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. 8

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

P. 9(1) Consolidated Quarterly Balance Sheets…………………

P. 9(2) Consolidated Quarterly Statements of Income…………………

P. 11(3) Consolidated Quarterly Statements of Comprehensive Income…………………

P. 12(4) Consolidated Quarterly Statements of Cash Flows…………………

P. 13(5) Segment Information…………………

P. 15(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 2016 (accumulated figures, April 1, 2016 September 30, 2016) are summarized as follows:(Unit: Millions of yen)
Net sales

Operating income

Ordinary income

Profit attributableto owners ofparentSecond Quarter Fiscal 2016

142,593

18,025

14,50918,449Second Quarter Fiscal 2015

149,128

7,549

5,262

2,783

(4.4)

138.8

175.7

562.9

Rate of change (%)

Net sales
Consolidated net sales decreased 4.4%, or ¥6,535 million compared with the corresponding
period of the previous year, to ¥142,593 million. Despite an increased sales volume inpolycrystalline silicon for both solar-cells and semiconductors, this was largely attributable toweak selling prices of petroleum products on the back of a downturn in domestic naphtha prices.
Cost of sales
Cost of sales decreased 13.4%, or ¥14,777 million compared with the corresponding period of
the previous year, to ¥95,419 million. Despite an increased sales volume in polycrystalline silicon,
this was due mainly to a downturn in raw material costs as a result of the drop in domestic
naphtha prices.
SG&A expenses
SG&A expenses decreased 7.1%, or ¥2,234 million compared with the corresponding period of
the previous year, to ¥29,148 million. This decrease primarily reflects a decrease in depreciation
cost of mission-critical systems and lower R&D expenses.
Operating income
Operating income increased 138.8%, or ¥10,476 million compared with the corresponding
period of the previous year, to ¥18,025 million. In addition to a downturn in production costs asa result of the drop in raw material and fuel prices, this was due mainly to operating rate
improvement and decreased depreciation expenses at Tokuyama Malaysia Sdn. Bhd.

2

Non-operating income/expenses, Ordinary income
Non-operating income/expenses deteriorated ¥1,229 million compared with the corresponding
period of the previous year, due chiefly to increase in trial production expenses at Tokuyama
Malaysia Sdn. Bhd.
As a result of the above, ordinary income increased 175.7%, or ¥9,247 million compared withthe corresponding period of the previous year, to ¥14,509 million.
Extraordinary income/losses, Income before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved by ¥5,258 million compared with the corresponding
period of the previous year. This was largely attributable to the posting of a subsidy income
related to manufacturing facilities of Tokuyama Malaysia Sdn. Bhd and a gain on sales of sharesof subsidiaries and associates.
As a result of the above, income before income taxes increased 245.5%, or ¥14,505 million
compared with the corresponding period of the previous year, to ¥20,414 million.
Income taxes decreased ¥1,256 million compared with the corresponding period of the previous
year. This was attributable to the decision on the business transfer of Tokuyama Malaysia Sdn.
Bhd. As a result of this, profit increased 479.2%, or ¥15,761 million compared with thecorresponding period of the previous year, to ¥19,050 million. Profit attributable to owners ofparent increased 562.9%, or ¥15,665 million compared with the corresponding period of theprevious year, to ¥18,449 million.

3

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

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

25,65825,879161,719(19,125)

142,593

42,55728,95926,791

169,122(19,994)

149,128(7.0)(11.4)

(3.4)

(4.4)

-

(4.4)

Reportable segment

Second Quarter
Fiscal 2016
Second Quarter
Fiscal 2015
Rate of change (%)

Chemicals

Specialty
Products

CementLife &
Amenity

38,976

31,641

39,56144,043

26,770(11.5)

18.2

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

Adjustment

Figures inquarterly
consolidated
incomestatement

18,922(896)

18,025

2,530

9,052

(1,502)

7,549

5.6

109.0

-

138.8

Reportable segment

Second Quarter
Fiscal 2016
Second Quarter
Fiscal 2015
Rate of change (%)

Others

Total

2,898

2,673

2,285

3,606

71.0

(19.6)

Chemicals

Specialty
Products

CementLife &
Amenity

6,062

3,381

3,907

3,611

(2,981)

67.9-(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.
Sales of vinyl chloride monomer (VCM) were down compared with the corresponding period of
the previous year. Despite an increase in the volume of export mainly for Asian market, thedecline was primarily due to weak trends in selling prices as a result of the drop in domestic
naphtha prices.
Sales of vinyl chloride resin declined. While a recovery in the number of housing starts and otherfactors contributed to firm trends in sales volumes, this downturn largely reflects weak selling
prices as a result of the drop in domestic naphtha prices. Earnings on the other hand improved
due mainly to the suspension of operations at the Chiba factory of Shin Dai-ichi Vinyl
Corporation.
With regard to soda ash and calcium chloride, sales decreased compared with the corresponding
period of previous fiscal year. Despite efforts to revise selling prices, this decrease primarilyreflects decreased sales volume.
4

As a result of the above, segment net sales decreased 11.5% compared with the corresponding
period of the previous year, to ¥38,976 million and operating income increased 67.9% to ¥6,062
million. The segment reported higher earnings on lower sales.
Specialty Products
Sales of semiconductor-grade polycrystalline silicon increased. This was primarily due to robust
shipping reflecting the growing trend to highly functional mobile devices including smartphones.
Sales of solar-grade polycrystalline silicon increased on the back of higher sales volumes,reflecting the operating rate improvement at Tokuyama Malaysia Sdn. Bhd.
Sales of fumed silica decreased compared with the corresponding period of previous fiscal year.
Despite steady sales of such applications as a polishing material for semiconductors, this was
mainly due to appreciated yen.
With regard to high-purity chemicals for electronics manufacturing, sales decreased comparedwith the corresponding period of the previous year. Despite robust sales volume in suchapplications as semiconductor manufacturing, this decrease was mainly owing to appreciated yen.
With regard to aluminum nitride, sales increased compared with the previous fiscal year. This was
attributable to an increase in sales volumes of such applications used for semiconductor
manufacturing equipment.
As a result of the above, segment net sales increased 18.2% compared with the corresponding
period of the previous year, to ¥31,641 million and operating income increased to ¥3,381 million(Posted operating loss of ¥2,981 million in the corresponding period of the previous year). The
segment reported higher earnings on higher sales.
CementSales of cement decreased. Despite an increase in the volume of exports on the back of robust
demand in the Asia region, this decrease was mainly due to the drop in export prices reflecting
such factors as the impact of appreciation in the value of the yen as well as a downturn in sales
volumes in Japan due to weak public- and private-sector demand. Meanwhile, successful steps
were taken to reduce manufacturing costs. In addition to a drop in raw material and fuel prices,
this reduction on manufacturing costs was mainly due to improvements in the basic unit ofproduction.
In the recycling and environment-related business, the Company accepted a higher volume ofwaste including coal ash compared with the previous fiscal year. As a result of this, sales
increased from the previous fiscal year.
Consolidated subsidiary net sales declined. This mainly reflected corrections to robust shipping
trends of such products as ready-mixed concrete targeting large-scale projects in thecorresponding period of the previous fiscal year.
As a result of the above, segment net sales decreased 7.0% compared with the corresponding
5

period of the previous year, to ¥39,561 million and operating income increased 71.0% to ¥3,907
million. The segment reported higher earnings on lower sales.
Life & Amenity
Sales of active pharmaceutical ingredients decreased. This reflected corrections following thesurge in shipments of generic pharmaceuticals in the corresponding period of the previous fiscal
year.
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 of such applications as sanitary articles including
disposable diapers decreased. As a result of this, sales decreased compared with thecorresponding period of the previous year.
With regard to polyolefin film, sales were declined compared with the corresponding period of
the previous year. Despite firm trends in sales mainly for application in packaging materials for
products sold at convenience stores, this decrease was largely the result of weak trends in selling
prices on the back of the decline in domestic naphtha prices.
With regard to dental materials and equipment, sales were essentially unchanged from thecorresponding period of the previous fiscal year. Despite an increase in sales volumes of new
products as well as products targeting overseas markets, results were impacted by appreciation in
the value of the yen.
With regard to medical diagnosis systems, sales were down compared with the corresponding
period of the previous year. This largely reflected corrections to robust shipping trends targetinglarge-scale projects in the corresponding period of the previous fiscal year.
In gas sensors, Figaro Engineering Inc. was removed from the Company’s scope of consolidation
effective from the second quarter of the fiscal year under review. This reflected the transfer of a
portion of the company’s shares.
As a result of the above, segment net sales decreased 11.4% compared with the corresponding
period of the previous year, to ¥25,658 million and operating income decreased 19.6% to ¥2,898
million. The segment reported lower earnings on lower sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of September 30, 2016, total assets amounted to ¥388,201 million, a decrease of ¥13,140
million compared with those as of March 31, 2016.

6

This decrease primarily reflects a decrease of ¥5,020 million in notes and accounts receivable anda decrease of ¥3,044 million in cash and deposits.
Total liabilities amounted to ¥292,187 million, down ¥48,949 million compared with those as ofMarch 31, 2016.
This largely reflected the downturn in the balances of income taxes payable, current portion ofbonds, long-term loans payable and current portion of long-term loans payable, short-term loans
payable of ¥10,667 million, ¥10,000 million, ¥9,663 million, and ¥6,765 million, respectively.
Net assets totaled ¥96,014 million, an increase of ¥35,809 million compared with those as ofMarch 31, 2016.
This increase mainly reflects the increase in shareholders' equity of ¥20,000 million as a result of
issuance of class A shares, and the increase in retained earnings of ¥18,449 million as a result of
posting profit attributable to owners of parent.
(Status of cash flows)
As of September 30, 2016, cash and cash equivalents were ¥118,120 million, a decrease of¥3,045 million compared with those as of March 31, 2016.
Net cash provided by operating activities totaled ¥4,171 million, a decrease of ¥6,126 million
compared with the corresponding period of the previous year.
Principal items included profit before income taxes of ¥20,414 million and income taxes paid of¥12,342 million.
Net cash used in investing activities totaled ¥755 million, a decrease of ¥5,531 million comparedwith the corresponding period of the previous year.
Major contributory factors were payments for purchases of property, plant and equipment of¥6,026 million, proceeds from sales of shares of subsidiaries resulting in change in scope of
consolidation of ¥2,926 million, and proceeds from subsidy income of ¥2,298 million.
Net cash used in financing activities amounted to ¥5,383 million, a decrease of ¥12,475 million
compared with the corresponding period of the previous year.
This was primarily attributed to proceeds from issuance of shares, redemption of bonds,
repayment of long-term loans payable and decrease in short-term loans payable of ¥19,732
million, ¥10,000 million, ¥9,720 million, and ¥6,424 million, respectively.
.

7(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 May 12, 2016. For further details, please see the Company’s news release, “Noticeconcerning Difference between Performance Forecast and Actual Results for First Half Fiscal
2016, and Revision of Performance Forecast for Full Fiscal 2016,” dated October 28, 2016.
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.

8

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen
3/31/2016
9/30/2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables and investment assets
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

9

121,508
68,5696
14,012
10,882
15,933
4,256
8,788
(192)
243,766

118,463
63,3496
15,777
9,508
16,480
3,154
4,985
(141)
231,586

101,982(74,022)
27,959461,619(410,707)
50,912
22,661(20,890)
1,771
31,3272,237(1,041)
1,196
6,597
119,764

100,587(73,289)
27,298456,772(409,971)
46,801
21,759(20,217)
1,542
31,036
3,348(1,144)2,204
8,547
117,430

3,738
41
2,613
6,393

2,910
41
2,560
5,512

15,765
3,094
610
8,057
4,190
(22)
(278)
31,417
157,575
401,342

17,209
2,978
1,548
8,514
3,619
(22)
(176)
33,672
156,615
388,201

Millions of yen
3/31/2016
9/30/2016
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 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

10

35,388
9,382－
17,036
10,000356
11,888
2
1,830
1,480
85
2,656
23,093
113,200

32,3402,616
1,000
14,378
－
561
1,220
0
1,857
1,884
32
2,406
16,48974,78834,400172,877
931
457
231
3,691
384
85
2,716
1,354
6
10,799227,935
341,136

34,400165,871
1,816
482
130
3,175
346
174
984
1,390
6
8,619
217,398
292,187

53,45857,532(61,281)(1,439)48,27010,00039,062
38,794(1,441)
86,415(1,020)
(526)
2,362
2,386
3,202
8,732
60,205
401,342

(722)
(558)
81
2,423
1,224
8,374
96,014388,201

(2) Consolidated Quarterly Statements of Income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Compensation income
Refund of fixed asset tax
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Trial production expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Subsidy income
Gain on write-off debts
Reversal of provision for loss on purchase contract
Gain on insurance adjustment
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on disaster
Loss on reduction of non-current assets
Loss on disposal of non-current assets
Provision for environmental measures
Loss on transfer from business divestitures
Litigation expenses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent
11

Millions of yen
Q2 FY2015 YTD Q2 FY2016 YTD
149,128
142,593
110,197
95,41938,93147,173
18,78912,592
31,382
7,549

18,527
10,62029,14818,025

64
273
379
－
－
432
723
1,873

21
155
416
464
250
－
697
2,006

2,400
311
1,448
4,160
5,262

2,146
1,700
1,675
5,522
14,509

101
－
－
19
－
1,270
16
－
1,408

9
1
1,934
2,298
1,268
667
255
50
6,484

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

1
－
7
50
251
101
98
68
579
20,414
1,363
19,050601
18,449(3) Consolidated Quarterly 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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

12

Millions of yen
Q2 FY2015 YTD Q2 FY2016 YTD
3,288
19,050
(935)
(118)
(310)
(2)
1
(1,364)
1,924

282
(61)
(2,070)37(264)(2,076)
16,974

1,414
509

16,471503

(4) Consolidated Statements of Cash Flows

Millions of yen
Q2 FY2015 YTD Q2 FY2016 YTD

Cash flows from operating activities
Profit before income taxes
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)
Loss (gain) on sales of property, plant and equipment
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Share of (profit) loss of entities accounted for using equity method
Subsidy income
Interest expenses
Loss on reduction of non-current assets
Impairment loss
Gain on transfer from business divestitures
Gain on write-off of debts
Gain on insurance claim
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
Proceeds from insurance income
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
Proceeds from sales of shares of subsidiaries resulting in change in scope of
consolidation
Payments of long-term loans receivableCollection of long-term loans receivable
Proceeds from subsidy income
Other, net
Net cash provided by (used in) investing activities
13

5,908
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)
10,29820,414
6,988(38)(1,983)
(170)
62
(429)
(177)
173
(7)
(1)
(1,934)(416)(2,298)
2,146
50
－
98
(1,268)
(255)
251
2,823
(2,319)(98)(1,457)(2,229)(127)
17,797633(2,172)
255(12,342)
4,171

(18)
17
(6,728)
638
(4)
26

(18)
17
(6,026)
69
(303)
304

－

2,926

(6)
120
19
(350)
(6,286)

(4)
118
2,298
(138)
(755)

Millions of yen
Q2 FY2015 YTD Q2 FY2016 YTD
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Proceeds from issuance of shares
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
Cash and cash equivalents at end of period

14(1,198)－1,094(12,275)(5,000)
－
(1)
(287)
(2)
(188)
(17,859)(141)(13,989)
116,122(6,424)1,000
498(9,720)(10,000)
19,732
0
(251)
(2)
(215)
(5,383)(1,078)(3,045)
121,166

27－

102,160

118,120

(5) Segment information
Second Quarter Fiscal 2015 (accumulated figures, Apr. 1, 2015 – Sept. 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

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 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.

Second Quarter Fiscal 2016 (accumulated figures, Apr. 1, 2016– Sept. 30, 2016)
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

Cement38,568408
38,976
6,062

26,032
5,609
31,641
3,381

39,50457
39,561
3,907

Life &
Amenity

24,585
1,073
25,658
2,898

Others*1

Total

13,902
11,97725,8792,673

142,593
19,125
161,719
18,922Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(19,125)(19,125)(896)

142,593
142,593
18,025*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.

15