October 31, 2014
Company name: Tokuyama Corporation
Representative name: Kazuhisa Kogo,
President and Representative Director(Code No. 4043, First Section TSE)
Contact: Taro Kobayashi, General Manager
Corporate Communications & Investor Relations Dept.
TEL: +81-3-6205-4832
Notice concerning the Posting of Extraordinary Loss, Revision of Performance Forecasts,
Distribution of Surplus, and the Return of Executive Compensation
With a resolution at a meeting of the Board of Directors held today, Tokuyama Corporation (hereinafterreferred to as “Tokuyama” or “the Company”) hereby announces to post an extraordinary loss, as describedbelow.
In addition, the Company has decided to revise its performance forecasts for fiscal 2014, the fiscal year
ending March 31, 2015, previously disclosed on July 31, 2014.
In conjunction with this revision, Tokuyama has taken steps to determine its distribution of surplus (interimdividend) for the fiscal year under review while revising its year-end dividend forecast. Taking these measures
into consideration, the decision has also been made to forgo a portion of the compensation payable toexecutives.
Brief details of the aforementioned are presented as follows.
1. Extraordinary Loss
(1) Decision to post an extraordinary loss
Following a review of its business plan, Tokuyama confirmed the evidence of impairment in connection withthe polycrystalline silicon first plant (PS-1 Plant) (annual production capacity: 6,200 tonnes) of the Company’s
consolidated subsidiary Tokuyama Malaysia Sdn. Bhd., located in Sarawak, Malaysia. After taking into
consideration the recoverability of the fixed asset in question, Tokuyama decided to post a consolidated
extraordinary loss of ¥86,027 million for the second quarter of the fiscal year under review (April 1, 2014 toSeptember 30, 2014). This extraordinary loss is comprised of an impairment loss of ¥74,820 million andrelated expenses totaling ¥11,207 million in line with the review of the Company’s business plan.
(2) Background leading up to the posting of the extraordinary loss
With the exception of certain facilities, construction on the polycrystalline silicon first plant (PS-1 Plant)
owned and operated by Tokuyama Malaysia Sdn. Bhd. was completed in February 2013. Thereafter, trial
operations were undertaken with the aim of producing and marketing mainly semiconductor-grade
polycrystalline silicon.
Particular emphasis is placed on realizing high quality, including extremely high levels of purity, in theproduction of semiconductor-grade polycrystalline silicon. Recognizing that the PS-1 Plant was unable toachieve the initially projected levels of quality and production stability, ongoing steps were taken to resolve
outstanding technological issues, put in place the necessary optimal production conditions, and commence

shipments of samples for customer certification at some time during fiscal 2015. Despite these endeavors,
both the Company and its subsidiary Tokuyama Malaysia Sdn. Bhd. have recently come to the understandingthat with issues relating to deposition equipment, the shipment of samples for customer certification isvirtually impossible even after resolving outstanding technological issues. Taking into consideration theinability to put forward a business plan that allows for projected future cash flows at this time, the decision
has been made to post the aforementioned extraordinary loss.
Moving forward, the Tokuyama Group will continue to engage in activities aimed at producing
semiconductor-grade polycrystalline silicon at the PS-1 Plant.
(3) Future course of action
An investigative committee, mainly comprising the Audit & Supervisory Board (including external auditors),
has been established within the Company as of today. After receiving the result of the committee’s
investigation, steps will be taken to put in place and implement remedial measures.

2. Revision of Performance Forecasts for Fiscal 2014 (April 1, 2014 to March 31, 2015)(1) Consolidated(Unit: Millions of yen)
Net income
OperatingOrdinary
Net income
per share
Net sales
incomeincome(loss)(yen)
Previous forecast : (A)300,500
18,50013,5009,500
27.31(Jul. 31, 2014)
Newly revised forecast :309,000
21,00015,000(75,000)(215.58)(B)
Change
8,500
2,500
1,500
(84,500)－: (B)－(A)Rate of change (%)
2.8
13.5
11.1－－[Reference] Fiscal 2013
287,330
20,27014,965
10,21829.37(2) Non-consolidated
Net sales
Previous forecast : (A)(Jul. 31, 2014)
Newly revised forecast :(B)Change: (B)－(A)Rate of change (%)[Reference] Fiscal 2013

Ordinaryincome

Net income(loss)(Unit: Millions of yen)
Net income pershare (yen)192,000

11,00010,50030.18

193,000

16,500(75,000)(215.58)

1,0005,500(85,500)－

0.5
177,86350.0
10,309－10,461－
30.07

(3) Reasons for the revision
With regard to the non-consolidated performance forecast for the full fiscal year ending March 31, 2015, net
sales are expected to be above the previous forecast, because of expected steady sales ofsemiconductor-related products; strong sales of active pharmaceutical ingredients; and a rise in export prices
resulting from the weaker-than- expected yen; and other factors.
Ordinary income is expected to exceed the previous forecast, due mainly to the above-mentioned factors anda change of the posting of a loss on valuation of stocks of subsidiaries and affiliates attributable toTokuyama Malaysia Sdn. Bhd. from in the non-operating expense section to in the extraordinary loss section.
Net income/loss is expected to be substantially worse than the previous forecast, due mainly to the postingof the above-mentioned extraordinary loss. As a result, the Company is projecting a net loss for the fiscal
year under review.
Operating income data has not been disclosed for non-consolidated performance forecasts.
With regard to the consolidated performance forecast for the full fiscal year ending March 31, 2015, net sales
are expected to be above the previous forecast, due mainly to the reasons mentioned in the non-consolidated
performance forecast and expected steady results of the Company’s consolidated subsidiaries.
Operating income and ordinary income are expected to exceed the previous forecast, due to theabove-mentioned reasons.
Net income/loss is expected to be substantially worse than the previous forecast, due mainly to the postingof an impairment loss on manufacturing facilities of Tokuyama Malaysia Sdn. Bhd. As a result, the TokuyamaGroup is projecting a net loss for the fiscal year under review.
As a result, revisions have been made to performance forecasts announced on July 31, 2014.

3. Distribution of Surplus(1) Decision regarding the distribution of surplus (interim dividend and year-end dividend)Distribution of surplus with a record date of September 30, 2014 (interim dividend for the fiscal year ending
March 31, 2015)
Dividend paid in previous
Previous dividend
year (interim dividend forItems decided
forecast (Jul. 31, 2014)
fiscal 2013)
Date of record
September 30, 2014
September 30, 2014
September 30, 2013
Dividend per share
0.00
3.00
3.00
(yen)
Total dividend paid
－
1,043
1,043
(millions of yen)
Effective date－
December 1, 2014
December 2, 2013
Source of dividend－
Retained earnings
Retained earnings

Distribution of surplus with a record date of March 31, 2015 (year-end dividend for the fiscal year ending
March 31, 2015)
Dividend paid in previous
Newly revised
Previous dividend
year (year-end dividend forforecast
forecast (Jul. 31, 2014)
fiscal 2013)Date of record
March 31, 2015
March 31, 2015
March 31, 2014
Dividend per share
0.00
3.00
3.00
(yen)
Total dividend paid
－1,043
1,043(millions of yen)
Effective date－June 25, 2015
June 26, 2014
Source of dividend－
Retained earnings
Retained earnings(2) Reasons for the revision
Tokuyama maintains a basic policy of providing continuous and stable dividends to shareholders andappropriates profits after taking into consideration performance trends and the Company’s medium- andlong-term business plans.
However, after accounting for the aforementioned extraordinary loss, Tokuyama is projecting a consolidated
and non-consolidated net loss of ¥75,000 million and ¥75,000 million, respectively, for the full fiscal year
ending March 31, 2015. Taking the above-mentioned net loss into consideration, regrettably, with a resolution
at a meeting of its Board of Directors held on October 31, 2014, the Company has decided to forgo thepayment of an interim dividend to shareholders of record as of September 30, 2014. The Company has alsodecided to revise its year-end dividend forecast and plans to forgo the payment of a year-end dividend toshareholders of record as of March 31, 2015.
We extend our deepest apologies to all shareholders for the anxiety caused and ask for their continued
support and understanding.
4. Decision to Forgo a Portion of the Compensation Payable to Executives
Tokuyama takes most seriously the posting of an extraordinary loss totaling ¥86,027 million (comprised ofan impairment loss of ¥74,820 million and related expenses of ¥11,207 million in line with a review of its
business plan) in connection with manufacturing facilities at the polycrystalline silicon PS-1 Plant of its
consolidated subsidiary Tokuyama Malaysia Sdn. Bhd. for the second quarter of the fiscal year under review.
The Company also deeply regrets its decision to forgo the distribution of surplus. Accordingly, Group
executives have decided to voluntarily waive (return) their compensation until June 2015 as follows.
Details of the decision by executives to voluntarily waive (return) their compensation:
Monthly compensation:
Executive officers and deputy executive officers
Voluntarily waive (return) 20% of their monthly compensation
Bonus:
President, senior managing executive officer
Voluntarily waive (return) 100% of their bonuses
Other executive officers and deputy executive officers
Voluntarily waive (return) 50% of their bonuses(Note) The performance forecasts contained in this news release have been prepared on the basis ofinformation available at the date of disclosure and certain assumptions which are judged to be rational. As a

result, actual performance may differ materially from forecasts due to a variety of factors that may arise in thefuture.