Summary of Consolidated Financial Statements for the Third Quarter Fiscal 2017 (JPGAAP)
January 31, 2018
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: February 9, 2018
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 third quarter ended Dec. 31, 2017 (Apr. 1, 2017 – Dec. 31, 2017)(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)
[%]

Third Quarter Fiscal 2017
226,090
3.7
30,150Third Quarter Fiscal 2016
218,100(3.8)
28,278(Note) Comprehensive income: 3rd Q FY17: 15,454 million yen [(42.0) %]3rd Q FY16: 26,637 million yen [-%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Third Quarter Fiscal 2017
Third Quarter Fiscal 2016

7,342
24,866(70.5)-

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

6.6
118.5

26,47725,173

5.2
168.2

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

82.18
350.05291.84* From the first quarter consolidated accounting period for the fiscal year ending March 31, 2018, the Company has changed its
presentation method and, for the cumulative third quarter consolidated accounting period of the fiscal year ended March 31,
2017, has stated the reclassified numerical values and the rate of change from the same quarter of the previous fiscal year after
having retroactively applied the appropriate presentation method. For more details, please refer to “(4) Notes on Quarterly
Consolidated Financial Statements (Changes of Presentation Method)” in “2. Quarterly Consolidated Financial Statements” onpage 12 of the Accompanying Materials to this Summary of Quarterly Consolidated Financial Statement.
* The Company consolidated its common shares at a ratio of one share for each five shares effective as of October 1, 2017. On
this basis, basic earnings per share and diluted earnings per share data are calculated on the assumption that the consolidation ofshares was conducted as of the beginning of the preceding fiscal year.
* Earnings per share data for each of the third quarter of fiscal 2016 and the third quarter of fiscal 2017 are calculated by dividing
the applicable amount after deducting profit not attributable to common stock from profit attributable to owners of parent (theamount of Class A share call premium redemption or the amount of Class A daily prorated unpaid dividends ) by the average
number of shares of common stock over the period.

(2) Consolidated financial position

Dec. 31, 2017
Mar. 31, 2017

Total assets

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

359,091
124,815424,433
135,976
Dec. 31, 2017: 114,102 million yen

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

31.8
1,640.41
29.9
1,527.42
Mar 31, 2017: 127,015 million yen(Reference) Shareholders' equity:* The Company consolidated its common shares at a ratio of one share for each five shares effective as of October 1, 2017. On
this basis, net assets per share data is calculated on the assumption that the consolidation of shares was conducted as of the
beginning of the preceding fiscal year.

12. Dividends（Period）

1st quarter(yen)

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

(yen)

Fiscal 2016, ended
0.00
Mar 31, 2017
Fiscal 2017, ending
2.00
Mar 31, 2018
Fiscal 2017
（Forecast）(Note) Revision of the latest dividends forecast: No

-

Total

(yen)

(yen)

0.00

0.00

10.00

-

-

* Dividends described above are the status of dividend related to common stock. As for the dividends related to class shares,
please refer to “(Reference) Dividends for Class A shares” on page 4 of this Summary of Quarterly Consolidated Financial
Statement.
* The Company consolidated its common shares at a ratio of one share for each five shares effective as of October 1, 2017. The
amount of dividend for the end of the second quarter of the fiscal year ending March 31, 2018 is presented as the amount ofdividend prior to share consolidation. The forecast amount for the year-end dividend per share for the fiscal year ending March
31, 2018 is stated after taking into the account the impact of the share consolidation. The annual dividend amount is presented
as “-.” Meanwhile, the dividend per share for the end of the second quarter of the fiscal year ending March 31, 2018 converted
after the share consolidation and the annual dividend per share are ¥10.00 and ¥20.00, respectively.

3. Consolidated performance forecast for fiscal 2017 (Apr. 1, 2017 – Mar. 31, 2018)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating profit Ordinary profit Profit
per shareowners of parent(millions of
yen)

[%]

(millions of
yen)

[%]

(millions of
yen)

[%]

Fiscal 2017308,000
3.0
39,0001.2
34,0000.0(Note) Revision of the latest consolidated performance forecast: Yes(millions of
yen)

[%]

15,000(71.2)(yen)

192.26* The Company announced the release, “Notice concerning Revision of Performance Forecast for Full Fiscal 2017,” on Jan. 31,
2018.
* From the first quarter consolidated accounting period for the fiscal year ending March 31, 2018, the Company has changed its
presentation method, and the change in the appropriate presentation method has been retroactively applied and reclassified forthe numerical values relating to the fiscal year ended March 31, 2017. For this reason, the change in consolidated performance
forecast for the fiscal year ending March 31, 2018, is calculated by comparison with the numerical value after reclassification.
* The Company consolidated its common shares at a ratio of one share for each five shares effective as of October 1, 2017. The
impact of the share consolidation is taken into account with respect to net profit per share in the consolidated performance
forecast for the full fiscal year ending March 31, 2018. Meanwhile, net profit per share in the consolidated performance
forecast for the full fiscal year ending March 31, 2018 converted prior to the share consolidation is ¥38.45.

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2017 – Dec. 31, 2017): Yes
Addition to the scope of consolidation: Reduction from the scope of consolidation: 1 (Company Name: Tokuyama Malaysia Sdn. Bhd.)(Note) This item means changes in significant subsidiaries with changes in the scope of consolidation
during this period (Apr. 1, 2017 – Dec. 31, 2017).
For more details, please refer to “(4) Notes on Quarterly Consolidated Financial Statements (Change insignificant consolidated subsidiaries during the cumulative third quarter)” in “2. Quarterly Consolidated
Financial Statements” on page 12 of the Accompanying Materials.
(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(Note) For more details, please refer to “2. Notes on Quarterly Consolidated Financial Statements and (4)Notes on Quarterly Consolidated Financial Statements (Change in accounting process specific to preparing
quarterly consolidated financial statement)” on page 12 of the Accompanying Materials to this Summary of2Quarterly Consolidated Financial Statement.

(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes of accounting policies by revision of accounting standards:
ii. Changes of accounting policies other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:(4) Number of shares issued (in common stock)
Number of shares issued at end of period
Third Quarteri.
(including treasury stock):
Fiscal 2017:
Third Quarterii. Number of treasury stock at end of period:
Fiscal 2017:
Third Quarteriii. Average number of shares over period:
Fiscal 2017:69,934,375
377,061
69,561,756

No
No
No
No

Fiscal 2016: 69,934,375
Fiscal 2016:

370,156

Third Quarter
69,566,654
Fiscal 2016:* The Company consolidated its common shares at a ratio of one share for each five shares effective as of October 1, 2017. On
this basis, number of shares issued at end of period, number of treasury stock at end of period average number of shares overperiod data are calculated on the assumption that the consolidation of shares was conducted as of the beginning of thepreceding fiscal year.

(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.
(Supplementary quarterly explanatory materials)
Supplementary quarterly explanatory materials will be available on our website on January 31 2018.

3

(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 2016, ended―――
38,082.20
Mar 31, 2017
Fiscal 2017, ending―
Mar 31, 2018

Total

(yen)
38,082.20(Note) All of the Class A shares issued by the Company (total paid-in amount: 20 billion yen) have been acquired andcancelled on June 14, 2017.

4

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

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

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

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

P. 11(4) Notes on Quarterly Consolidated Financial Statements…………………

P. 12(5) Segment Information…………………

P. 13(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 third quarter fiscal 2017 (accumulated figures, April 1, 2017 December 31, 2017) are summarized as follows:(Unit: Millions of yen)
Net sales

Operating profit

Ordinary profit

Profit attributableto owners ofparentThird Quarter Fiscal 2017

226,090

30,15026,477

7,342

Third Quarter Fiscal 2016

218,100

28,27825,17324,866

3.7

6.6

5.2

(70.5)

Rate of change (%)

Net sales
Consolidated net sales increased 3.7%, or ¥7,989 million compared with the corresponding
period of the previous year, to ¥226,090 million. This was largely attributable to an increased
sales volume in major products such as cement and revision in selling prices of caustic soda andpetroleum products.
Cost of sales
Cost of sales increased 4.0%, or ¥5,906 million compared with the corresponding period of theprevious year, to ¥152,100 million. This was due mainly to a upturn in raw material and fuel costs
as a result of the increase in coal and domestic naphtha prices.
SG&A expenses
SG&A expenses increased 0.5%, or ¥211 million compared with the corresponding period of
the previous year, to ¥43,839 million. This was largely attributable to the increase in distribution
costs associated with the increased sales volumes.
Operating profit
Operating profit increased 6.6%, or ¥1,871 million compared with the corresponding period of
the previous year, to ¥30,150 million. Despite a upturn in fuel and raw material costs, this wasdue mainly to an increased sales volume in major products and improved profitability with theeffect of the revision in selling prices.

2

Non-operating income/expenses, Ordinary profit
Non-operating income/expenses deteriorated ¥567 million compared with the corresponding
period of the previous year.
As a result of the above, ordinary profit increased 5.2%, or ¥1,303 million compared with thecorresponding period of the previous year, to ¥26,477 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses deteriorated by ¥6,470 million compared with the corresponding
period of the previous year. This was largely attributable to the posting of a loss on transfer ofbusiness due to the completion of transfer of Tokuyama Malaysia Sdn. Bhd.
As a result of the above, profit before income taxes decreased 17.4%, or ¥5,166 million
compared with the corresponding period of the previous year, to ¥24,564 million.
Profit after deducting income taxes calculated in an appropriate way decreased 51.1%, or ¥13,150
million compared with the corresponding period of the previous year, to ¥12,577 million. Profit
attributable to owners of parent decreased 70.5%, or ¥17,524 million compared with thecorresponding period of the previous year, to ¥7,342 million.

3

(Operating results by segment)
Net sales(Unit: Millions of yen)

Specialty
Products

OthersAdjustment

CementLife &
Amenity

Total

Chemicals

Figures inquarterly
consolidated
incomestatement

67,88941,75665,75037,79541,047254,238(28,148)

226,090

60,00347,36961,392

38,296

39,468

246,531(28,430)

218,100

13.1(11.8)

7.1

(1.3)

4.0

3.1

-

3.7

Reportable segment

Third Quarter
Fiscal 2017
Third Quarter
Fiscal 2016
Rate of change (%)

Operating profit(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

29,777373

30,150

4,593

29,417(1,138)28,278

9.4

1.2

-

6.6

Reportable segment

Third Quarter
Fiscal 2017
Third Quarter
Fiscal 2016
Rate of change (%)

Others

Total

2,383

5,024

6,049

3,962

(39.5)(39.8)

Chemicals

Specialty
Products

CementLife &
Amenity

11,405

7,306

3,656

9,669

5,141

18.0

42.1

(Note) Net sales and operating profit in each segment include inter-segment transactions.

Chemicals
Sales of caustic soda were up compared with the corresponding period of the previous year.
Both domestic sales and export volumes increased due to the upward trend of Asian market, andthe revision of selling prices was also progressed.
Sales of vinyl chloride monomer (VCM) were up compared with the corresponding period of theprevious year. The volume of export mainly for Asian market increase and the selling prices wassteady.
Sales of vinyl chloride resin increased. The revision of selling price was progressed.
As a result of the above, segment net sales increased 13.1% compared with the corresponding
period of the previous year, to ¥67,889 million and operating profit increased 18.0% to ¥11,405
million. The segment reported higher earnings on higher sales.

4Specialty Products
Sales of polycrystalline silicon decreased. Despite a robust sales volume of semiconductor-grade
polycrystalline silicon, this was primarily due to removal of Tokuyama Malaysia Sdn. Bhd. fromthe Company’s scope of consolidation.
Sales of fumed silica increased compared with the corresponding period of previous fiscal year
due to increased 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, mainly due to the robust sales volume insuch applications as semiconductor manufacturing.
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 decreased 11.8% compared with the corresponding
period of the previous year, to ¥41,756 million and operating profit increased 42.1% to ¥7,306
million. The segment reported higher earnings on lower sales.
CementSales of cement increased. While the construction of infrastructure related to Tokyo Olympic
was becoming more active, domestic sales increased at Tokyo and the other areas, and the volume
of exports increased on the back of robust demand in the Asia region. Meanwhile,
manufacturing costs increased due to a rise in raw material prices such as coal.
In the resource recycling business, despite the Company accepted a lower volume of waste, thewaste disposable fees increased compared with the previous fiscal year. As a result of this, sales
was almost same as the corresponding period of previous fiscal year.
Consolidated subsidiary net sales increased. This mainly reflected the robust shipping trends ofsuch products as ready-mixed concrete.
As a result of the above, segment net sales increased 7.1% compared with the corresponding
period of the previous year, to ¥65,750 million and operating profit decreased 39.5% to ¥3,656
million. The segment reported lower earnings on higher sales.
Life & Amenity
With regard to dental materials and equipment, sales increased compared with the previous fiscal
year, due to higher sales volumes of new products and an increase in the volume of export.
With regard to ion exchange membranes, sales were up compared with the corresponding periodof the previous year. This largely reflected the increase of sales on large-scale projects comparedwith the corresponding period of the previous fiscal year.
Sales of active pharmaceutical ingredients and intermediates decreased compared with the5corresponding period of the previous year, owing mainly to the downswing in the sales volumesof generic pharmaceuticals.
With regard to microporous film, sales of such applications as sanitary articles including
disposable diapers decreased at oversea subsidiaries. As a result of this, sales decreased comparedwith the corresponding period of the previous year.
In gas sensors, Figaro Engineering Inc. was removed from the Company’s scope of consolidation
effective from the second quarter of the previous fiscal year. This reflected the transfer of a
portion of the company’s shares.
As a result of the above, segment net sales decreased 1.3% compared with the corresponding
period of the previous year, to ¥37,795 million and operating profit decreased 39.8% to ¥2,383
million. The segment reported lower earnings on lower sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of December 31, 2017, total assets amounted to ¥359,091 million, a decrease of ¥65,342
million compared with those as of March 31, 2017.
This decrease primarily reflects the decrease of cash and deposits, property, deferred tax asset –plant and equipment, buildings and structures of ¥49,551 million, ¥8,410 million and ¥8,162
million respectively. Due to the removal of Tokuyama Malaysia Sdn. Bhd. from the consolidation,asset decreased by ¥20,522 million.
Total liabilities amounted to ¥234,275 million, down ¥54,181 million compared with those as ofMarch 31, 2017.
The principal factors are a decrease in bonds payable of ¥34,400 million following theexecution of a trust-type debt assumption agreement (debt assumption agreement) with a bank ,and a decrease in long-term loans payable and current portion of long-term loans payable of¥25,023 million owing mainly to normal scheduled repayment together with repayments inadvance. Due to the removal of Tokuyama Malaysia Sdn. Bhd. from the consolidation, liabilities
decreased by ¥4,512 million.
Net assets totaled ¥124,815 million, an decrease of ¥11,160 million compared with those as ofMarch 31, 2017.
Despite an increase in retained earnings of ¥7,342 million as a result of posting profit
attributable to owners of parent, this mainly reflected the decrease of shareholders’ equity of¥22,387 million due to the payment of dividend for class A shares and acquisition andcancellation of class A shares.

6

(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 April 28, 2017. For further details, please see the Company’s news release, “Noticeconcerning Revision of Performance Forecast for Full Fiscal 2017,” dated January 31, 2018.
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)
3/31/201712/31/2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Lease receivables
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 doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Total assets

8

121,598
73,945
6
12,348
9,919
16,567
1,627
10,798△150
246,661

72,04774,99328
13,892
9,549
15,535
1,614
5,610
△124
193,148

100,430△72,723
27,707450,926△404,912
46,01422,015△20,222
1,793
31,2893,533△1,3292,203
10,225
119,233

102,916△73,070
29,846446,564△404,456
42,10822,023△19,987
2,036
31,313
3,662△1,651
2,010
3,756
111,071

2,367
35
2,384
4,787

1,500
57
1,566
3,125

19,083
2,833
19,824
8,936
3,221
△148
53,750177,771424,433
401,342

25,243
2,713
11,427
9,316
3,188
△143
51,746
165,943
359,091
405,362(Millions of yen)
3/31/201712/31/2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
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
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
Non-controlling interests
Total net assets
Total liabilities and net assets

937,0352,138
15,235
577
1,335
2,103
1,628
81
2,671
16,346
79,15344,856
2,062
16,097
610
3,295
1,090
3,641
58
－
14,88986,601

34,400160,555
1,787
268
143
2,829
318
287
1,430
6
7,275
209,303
288,457－
134,670
1,564
317
139
1,782
271
255
1,501
6
7,164
147,673
234,275

10,00041,54572,511△1,446
122,609

10,00020,00078,396△1,467
106,929

319
△274
1,528
2,833
4,406
8,960
135,976
424,433
8,732
60,205
401,342

2,093
△194
2,458
2,815
7,173
10,713
124,815
359,091
8,681
108,157
405,362(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
Trial products income
Compensation income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on bond retirement
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Compensation income for damage
Subsidy income
Gain on insurance adjustment
Gain on write-off debts
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
Loss on transfer of business
Loss on contract cancellation
Provision for environmental measures
Loss on transfer from business divestitures
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent
10(Millions of yen)
Q3 FY2016 YTD Q3 FY2017 YTD
218,100
226,090
146,194
152,100
71,90673,98928,274
15,352
43,62728,27829,385
14,453
43,83930,150

39
234
723
27
464
1,603
3,093

174
253
811
450
－
1,654
3,344

3,187
－
3,011
6,198
25,173

2,894
1,605
2,517
7,017
26,477

14
1
1,934
－
2,298
255
1,268
1,044
6,818

478
－
－
7,705
144
31
－
－
8,359

3
1,475
15
50
423
－
－
101
98
91
2,261
29,730
4,003
25,727860
24,866

1
－
4
110
489
8,059
1,431
－
－
176
10,27324,564
11,986
12,5775,235
7,342

(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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of the Parent
Non-controlling interests

11(Millions of yen)
Q3 FY2016 YTD Q3 FY2017 YTD
25,727
12,577
1,451
230
△593
55
△235
909
26,637

1,778
135
946
△17
34
2,877
15,45425,827809

10,1095,345

(4) Notes on Quarterly Consolidated Financial Statements(Change of Significant Consolidated Subsidiaries during the cumulative third quarter)
The Company’s subsidiary, Tokuyama Malaysia Sdn. Bhd., has been removed from the Company’s
consolidation during the first quarter consolidated accounting period for the fiscal year ending March 31, 2018
due to the transfer of all shares owned by the Company. As the transfer of the share has been done on May 31,
2017, the performance of Tokuyama Malaysia Sdn. Bhd. from April 1, 2017 to May 31, 2017 is included in the
consolidation for the cumulative third quarter consolidated accounting period for the fiscal year ending March
31, 2018.
(Change of Accounting Process Specific to Preparing Quarterly Consolidated Financial Statement)(Calculation of Tax Expense)
The Company rationally estimated the effective tax rate after the application of accounting policy fordeferred tax, which was applied to the profit/loss before income tax for the fiscal year under review
including the cumulative third quarter consolidated accounting period for the fiscal year ending March 31,
2018, and calculated the tax expense by multiplying the estimated effective tax rate to the profit/loss before
income tax. However, if the application of said estimated effective tax rate reduces the rationality of thecalculation of tax expense, the Company applies the effective statutory tax rate.

(Change of Presentation Method)(Relating to Quarterly Consolidated Income Statements)“Cost of idle operations,” which was included in “Others” under “Non-operating expenses” during the
cumulative third quarter of the previous fiscal year, is included under “Cost of sales” from the first quarter
consolidated of this fiscal year for the purpose of stricter cost control. In order to reflect this change inpresentation method, we have reclassified the quarterly consolidated financial statements for the cumulative
third quarter of the previous fiscal year.
As a result, for the cumulative third quarter of the previous consolidated fiscal year, ¥863 million which was
included in “Others” under “Non-operating expenses” has been reclassified under “Cost of sales.”12(5) Segment information
Third Quarter Fiscal 2016 (accumulated figures, Apr. 1, 2016– Dec. 31, 2016)

1. Information on sales and profit by reportable segment(Millions of yen)
Reportable segments

Sales
Sales to customers
Inter-segment sales/transfer
Total
Segment profit

Chemicals

Specialty
Products

Cement59,384618
60,003
9,669

39,0808,289
47,3695,141

61,29993
61,392
6,049

Life &
Amenity

36,714
1,581
38,296
3,962

Others*1

Total

21,621
17,84739,468
4,593

218,100
28,430246,531
29,417

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(28,430)(28,430)(1,138)218,100
218,100
28,278*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 adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment.
*3 With regard to segment profit, operating profit in the quarterly consolidated statement of income has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others”
segment’s profit.

Third Quarter Fiscal 2017 (accumulated figures, Apr. 1, 2017– Dec. 31, 2017)

1. Information on sales and profit by reportable segment(Millions of yen)
Reportable segments

Sales
Sales to customers
Inter-segment sales/transfer
Total
Segment profit

Chemicals

Specialty
Products

Cement67,153735
67,88911,04533,3968,360
41,756
7,306

65,495255
65,7503,656Life &
Amenity

36,194
1,601
37,795
2,383

Others*1

Total

23,851
17,19541,0475,024

226,090
28,148254,238
29,777

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(28,148)(28,148)373

226,090226,090
30,150*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution c ompany, a real estate business, etc.
*2 The segment profit 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, operating profit in the quarterly consolidated statement of income has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others”
segment’s profit.

2. Items related to the changes in reportable segment
As referred at “(4) Notes on Quarterly Consolidated Financial Statements (Changes in Presentation)” in “2.
Quarterly Consolidated Financial Statements”, ”Cost of idle operations,” which was included in “Others”
under “Non-operating expenses” during the cumulative third quarter of the previous fiscal year, is included
under “Cost of sales” from the first quarter consolidated of this fiscal year for the purpose of stricter cost
control.
13