Summary of Consolidated Financial Statements for the Second Quarter Fiscal 2017 (JPGAAP)
October 27, 2017
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 8, 2017
Scheduled date of dividends payout :November 30, 2017
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, 2017 (Apr. 1, 2017 – Sept. 30, 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)
[%]

Second Quarter Fiscal 2017
146,166
2.5
18,878
Second Quarter Fiscal 2016
142,593(4.4)
17,631(Note) Comprehensive income: 2nd Q FY17: 6,939 million yen [(59.1) %]2nd Q FY16: 16,974 million yen [782.0%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Second Quarter Fiscal 2017
Second Quarter Fiscal 2016

174
18,449(99.1)
562.9

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

7.1
133.6

15,697
14,5098.2
175.7

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

(20.87)261.42226.18* 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 second 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 “(5) Notes on Quarterly
Consolidated Financial Statements (Changes of Presentation Method)” in “2. Quarterly Consolidated Financial Statements” onpage 14 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 second quarter of fiscal 2016 and the second quarter of fiscal 2017 are calculated by
dividing the applicable amount after deducting profit not attributable to common stock from profit attributable to owners ofparent (the amount of Class A share call premium redemption or the amount of Class A daily prorated unpaid dividends ) by theaverage number of shares of common stock over the period.

(2) Consolidated financial position

Sep 30, 2017
Mar 31, 2017

Total assets

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

361,683
117,130
424,433
135,976
Sep 30, 2017: 106,324 million yen

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

29.4
1,528.48
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 2017
300,000
0.3
36,000 (6.6)
32,000 (5.9)(Note) Revision of the latest consolidated performance forecast: No(millions of
yen)

[%]

13,000(75.1)(yen)

163.50* 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 ¥32.70.

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2017 – Sept. 30, 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 – Sept. 30, 2017).
For more details, please refer to “(5) Notes on Quarterly Consolidated Financial Statements (Change insignificant consolidated subsidiaries during the cumulative second quarter)” in “2. Quarterly Consolidated
Financial Statements” on page 14 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 (5)Notes on Quarterly Consolidated Financial Statements (Change in accounting process specific to preparing
quarterly consolidated financial statement)” on page 14 of the Accompanying Materials to this Summary of
Quarterly Consolidated Financial Statement.

2(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
Second Quarteri.
(including treasury stock):
Fiscal 2017:
Second Quarterii. Number of treasury stock at end of period:
Fiscal 2017:
Second Quarteriii. Average number of shares over period:
Fiscal 2017:69,934,375
372,084
69,563,316

No
No
No
No

Fiscal 2016: 69,934,375
Fiscal 2016:

370,156

Second Quarter
69,567,173
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.

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) Consolidated Statements of Cash Flows…………………

P. 12(5) Notes on Quarterly Consolidated Financial Statements…………………

P. 14(6) 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 2017 (accumulated figures, April 1, 2017 September 30, 2017) are summarized as follows:(Unit: Millions of yen)
Net sales

Operating profit

Ordinary profit

Profit/loss
attributable toowners of parent

Second Quarter Fiscal 2017

146,166

18,87815,697

174

Second Quarter Fiscal 2016

142,593

17,631

14,50918,449

2.5

7.1

8.2

(99.1)

Rate of change (%)

Net sales
Consolidated net sales increased 2.5%, or ¥3,573 million compared with the corresponding
period of the previous year, to ¥146,166 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 increase 2.5%, or ¥2,390 million compared with the corresponding period of theprevious year, to ¥98,204 million. This was due mainly to a upturn in raw material and fuel costs
as a result of the increase in domestic naphtha and coal prices.
SG&A expenses
SG&A expenses decreased 0.2%, or ¥64 million compared with the corresponding period of theprevious year, to ¥29,083 million. Despite the increase in distribution costs associated with theincrease in sales volumes, this decrease primarily reflects removal of Figaro Engineering Inc. andTokuyama Malaysia Sdn. Bhd. from the Company’s scope of consolidation.
Operating profit
Operating profit increased 7.1%, or ¥1,246 million compared with the corresponding period of
the previous year, to ¥18,878 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 ¥58 million compared with the corresponding
period of the previous year.
As a result of the above, ordinary profit increased 8.2%, or ¥1,188 million compared with thecorresponding period of the previous year, to ¥15,697 million.
Extraordinary income/losses, Profit/loss before income taxes, Profit/loss, Profit/loss
attributable to owners of parent
Extraordinary income/losses deteriorated by ¥7,650 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 31.7%, or ¥6,461 million
compared with the corresponding period of the previous year, to ¥13,952 million.
Profit after deducting income taxes calculated in an appropriate way decreased 72.1%, or ¥13,741
million compared with the corresponding period of the previous year, to ¥5,308 million. Profit
attributable to owners of parent decreased 99.1%, or ¥18,274 million compared with thecorresponding period of the previous year, to ¥174 million.

3

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

Specialty
Products

OthersAdjustment

CementLife &
Amenity

Total

Chemicals

Figures inquarterly
consolidated
incomestatement

43,35727,27042,52625,346

26,608165,110(18,943)

146,166

38,976

31,641

39,56125,65825,879161,719(19,125)

142,593

11.2(13.8)

7.5

(1.2)

2.8

2.1

-

2.5

Reportable segment

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

Operating profit(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

18,220657

18,8782,673

18,528(896)

17,631

18.4

(1.7)

-

7.1

Reportable segment

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

Others

Total

1,497

3,165

3,746

2,809

(39.7)(46.7)

Chemicals

Specialty
Products

CementLife &
Amenity

6,963

4,335

2,258

5,976

3,322

16.5

30.5

(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 11.2% compared with the corresponding
period of the previous year, to ¥43,357 million and operating profit increased 16.5% to ¥6,963
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 13.8% compared with the corresponding
period of the previous year, to ¥27,270 million and operating profit increased 30.5% to ¥4,335
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 7.5% compared with the corresponding
period of the previous year, to ¥42,526 million and operating profit decreased 39.7% to ¥2,258
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 1.2% compared with the corresponding
period of the previous year, to ¥25,346 million and operating profit decreased 46.7% to ¥1,497
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, 2017, total assets amounted to ¥361,683 million, a decrease of ¥62,750
million compared with those as of March 31, 2017.
This decrease primarily reflects the decrease of cash and deposits, property, plant and equipment,
buildings and structures – deferred tax asset of ¥50,115 million, ¥7,929 million and ¥5,452
million respectively. Due to the removal of Tokuyama Malaysia Sdn. Bhd. from the consolidation,asset decreased by ¥20,522 million.
Total liabilities amounted to ¥244,552 million, down ¥43,904 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¥11,917 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 ¥117,130 million, an decrease of ¥18,846 million compared with those as ofMarch 31, 2017.
This mainly reflected the decrease of shareholders’ equity of ¥22,387 million due to the payment
of dividend for class A shares and acquisition and cancellation of class A shares.
(Status of cash flows)
As of September 30, 2017, cash and cash equivalents were ¥71,059 million, a decrease of¥47,760 million compared with those as of March 31, 2017.
6

Net cash provided by operating activities totaled ¥26,559 million, an increase of ¥22,388 million
compared with the corresponding period of the previous year.
Principal items included profit before income taxes of ¥13,952 million , depreciation cost of¥6,686 million and income taxes refund of ¥3,411 million.
Net cash used in investing activities totaled ¥3,415 million, an increase of ¥2,660 million
compared with the corresponding period of the previous year.
Major contributory factors were payments for purchases of property, plant and equipment of¥6,930 million and proceeds from sales of shares of subsidiaries resulting in change in scope of
consolidation of ¥5,362 million.
Net cash used in financing activities amounted to ¥71,087 million, an increase of ¥65,703
million compared with the corresponding period of the previous year.
This was primarily attributed to payments for acquisition of shares such as class A shares,
redemption of bonds and repayment of long-term loans payable of ¥21,630 million, ¥36,014
million, and ¥18,589 million, respectively.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Although the future business environment is uncertain because of the fluctuations in exchange
rate and raw material and fuel prices, the Company’s results were in line with our expectations at
this time. Therefore, the Company has not revised the performance forecasts, announced on
April 28, 2017.
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
3/31/2017
9/30/2017
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

8

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

71,48372,29628
13,474
9,034
13,2301,618
14,022△123
195,064

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

100,695△72,708
27,987446,212△402,768
43,44322,021△19,960
2,061
31,2993,608△1,542
2,065
4,447
111,304

2,367
35
2,384
4,787

1,818
29
1,608
3,456

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

22,362
2,723
14,381
9,382
3,156
△148
51,857
166,618
361,683Millions of yen
3/31/2017
9/30/2017
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 contract cancellation
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

937,0352,138
15,235
577
1,335
2,103
1,628
81
2,671
16,346
79,15339,341
2,142
16,374
579
3,563
2,085
3,019
41
1,060
15,726
83,93434,400160,555
1,787
268
143
2,829
318
287
1,430
6
7,275
209,303
288,457

147,499
1,625
291
129
1,769
282
278
1,479
6
7,256
160,618
244,552

10,00041,54572,511△1,446
122,609

10,00019,91971,923△1,451
100,391

319
△274
1,528
2,833
4,406
8,960
135,976
424,433

1,089
△148
2,145
2,847
5,933
10,805
117,130
361,683(2) Quarterly Consolidated Statements of Income
Millions of yen
Q2 FY2016 YTD
Q2 FY2017 YTD
142,593
146,166
95,813
98,204
46,77947,962

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
Fiduciary obligation fee
Trial products income
Rent income on non-current assets
Compensation income
Refund of fixed asset tax
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
Reversal of provision for loss on purchase contract
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on disaster
Loss on reduction of non-current assets
Loss on disposal of non-current assets
Loss on transfer of business
Provision for loss on contract cancellation
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

18,527
10,62029,14817,631

19,294
9,789
29,083
18,878

21
155
416
14
18
145
464
250
518
2,006

145
149
515
258
248
239
－
－
712
2,267

2,146
－
2,981
5,128
14,509

2,031
1,604
1,812
5,448
15,697

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

473
－
－
7,705
144
31
－
－
－
8,355

1
7
50
251
－
－
－
101
98
68
579
20,414
1,363
19,050601
18,449

1
3
110
364
8,059
1,060
386
－
－
114
10,10013,952
8,643
5,308
5,134
174

(3) Quarterly Consolidated Statements of Comprehensive Income

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

11

Millions of yen
Q2 FY2016 YTD
Q2 FY2017 YTD
19,050
5,308
282
△61
△2,070
37

772
181
643
14

△264

18

△2,076
16,974

1,630
6,939

16,471
503

1,701
5,238

(4) Consolidated Statements of Cash Flows
Millions of yen
Q2 FY2016 YTD
Q2 FY2017 YTD
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in provision for loss on contract cansellation
Increase (decrease) in other provision
Increase (decrease) in net defined benefit liability
Decrease (increase) 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
Gain on transfer from business divestitures
Gain on write-off of debts
Gain on insurance claim
Loss (gain) on disposal of non-current assets
Loss (gain) on transfer of business
conpensation income for damage
Loss on contract cancellation
Loss on redemption of bonds
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 inscope 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

12

20,414
6,988－△2,191
62
△429
△177
173
△7
△1
△1,934△416△2,2982,146
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

13,952
6,686
1,060
△203
49
△539
△294
△127
△472
－
－
△515
△144
2,031
110
－
－
△31
364
8,059
△7,705
386
1,604
1,600
△2,752
△714
2,988
△301
△488
24,604567△2,05531
3,411
26,559△18
17△6,026
69
△303
304

△219
92
△6,930155△1,702
35

2,926

5,362

△4
118
2,298
△138
△755

△4
119
144
△467
△3,415

Millions of yen
Q2 FY2016 YTD
Q2 FY2017 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 common 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
Cash and cash equivalents at end of period

13△6,4241,000
498△9,720△10,000
19,732
△0
△251
△2
△215
△5,383△1,078△3,045
121,166
118,120

△33
－
6,613
△18,589△36,014－△761△238△21,630△433△71,087
183△47,760
118,819
71,059(5) Notes on Quarterly Consolidated Financial Statements(Change of Significant Consolidated Subsidiaries during the cumulative second 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 second 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 second 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 second 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
second quarter of the previous fiscal year.
As a result, for the cumulative second quarter of the previous consolidated fiscal year, ¥394 million which
was included in “Others” under “Non-operating expenses” has been reclassified under “Cost of sales.”14(6) Segment information
Second Quarter Fiscal 2016 (accumulated figures, Apr. 1, 2016– Sept. 30, 2016)

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

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

Chemicals

Specialty
Products

Cement38,568408
38,976
5,976

26,032
5,609
31,641
3,322

39,50457
39,561
3,746Life &
Amenity

24,585
1,073
25,6582,809

Others*1

Total

13,902
11,97725,8792,673

142,593
19,125
161,719
18,528Adjustment*2

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

142,593
142,593
17,631*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.

Second Quarter Fiscal 2017 (accumulated figures, Apr. 1, 2017– Sept. 30, 2017)

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

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

Chemicals

Specialty
Products

Cement42,918439
43,357
6,963

21,4405,830
27,2704,335

42,44977
42,5262,258

Life &
Amenity

24,1391,207
25,346
1,497

Others*1

Total

15,218
11,38926,6083,165

146,166
18,943
165,110
18,220Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(18,943)(18,943)657

146,166
146,166
18,878*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 “(5) 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 second 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.
15