Summary of Consolidated Financial Statements for the First Quarter Fiscal 2021 (JPGAAP)
July 28, 2021
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL https://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 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 first quarter ended Jun. 30, 2021 (Apr. 1, 2021 – Jun. 30, 2021)(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)
[%]

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

First Quarter Fiscal 2021
67,497
(4.4)
7,496
12.7
7,904
18.4
First Quarter Fiscal 2020
70,624(7.6)
6,653_(5.3)
6,674_6.0(Note) Comprehensive income: 1st Q FY21: 4,724 million yen [(26.1)%] 1st Q FY20: 6,390 million yen [61.8 %]Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]First Quarter Fiscal 2021
First Quarter Fiscal 2020

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

68.65
74.94

Net assets per
share
(yen)

2,791.89
2,758.37

4,941
5,205

(5.1)
7.1

Total assets

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

Shareholders’Equity ratio(%)

393,804
386,794

209,174
205,26151.0
51.3(2) Consolidated financial position

June 30, 2021
March 31, 2021
(Reference) Shareholders' equity:

Jun. 30, 2021: 200,982 million yen

Mar. 31, 2021: 198,561 million yen(Note)The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Corporate Accounting Standard No.
29, March 31, 2020), etc. effective from the beginning of the first quarter ended June 30, 2021 in accordance with transitional
treatment. For more details, please refer to “2. Quarterly Consolidated Financial Statements and (3) Notes on Quarterly
Consolidated Financial Statements (Changes in accounting policy)” on page 13 of the Accompanying Materials to this Summaryof Quarterly Consolidated Financial Statement.

2. Dividends（Period）

1st quarter(yen)

Fiscal 2020, ended
Mar 31, 2021
Fiscal 2021, ending
Mar 31, 2022
Fiscal 2021
（Forecast）-

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

(yen)

(yen)

Total
(yen)

35.00

-

35.00

70.00

35.00

-

35.00

70.00

-

(Note) Revision of the latest dividends forecast: No

1

3. Consolidated performance forecast for fiscal 2021 (April 1, 2021 - March 31, 2022)(% 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

Fiscal 2021

(millions of
yen)

[%]

271,000 (10.4)(millions of
yen)

[%]

26,000 (15.9)(millions of
yen)

[%]

26,000 (15.6)(millions ofyen)

22,000[%](10.3)(yen)

305.62(Note) Revision of the latest consolidated performance forecast: No*Notes(1) Changes in significant subsidiaries during this period: No(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (3) Notes on
Quarterly Consolidated Financial Statements (Application of accounting methods specific to the preparation of
the quarterly consolidated financial statements)” on page 12 of the Accompanying Materials to this Summaryof Quarterly Consolidated Financial Statement.
(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes in accounting policy by revision of accounting standards:
ii. Changes in accounting policy other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:

Yes
No
No
No

(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (3) Notes on
Quarterly Consolidated Financial Statements (Changes in accounting policy)” on page 13 of the Accompanying
Materials to this Summary of Quarterly Consolidated Financial Statement.
(4) Number of shares issued (in common stock)
1st Quarter
Number of shares issued at end of periodi.
(including treasury stock):
Fiscal 2021:
1st Quarterii. Number of treasury stock at end of period:
Fiscal 2021:
1st Quarteriii. Average number of shares over period:
Fiscal 2021:

72,088,327

Fiscal 2020:

72,088,327

100,452

Fiscal 2020:

103,403

71,985,131

1st Quarter
Fiscal 2020:

69,455,591(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.
(Access to supplementary explanations on business results)
The Company also supplementary materials “Presentation for IR Meeting” through TDnet at the same date.

2

Contents for Accompanying Materials
1. Qualitative information on consolidated results for this quarter…………………

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

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

P. 6…………………

P. 7

2. 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. 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 first quarter fiscal 2021 (April 1, 2021 - June 30, 2021) aresummarized as follows:
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Corporate
Accounting Standard No. 29, March 31, 2020), etc. effective from the beginning of the firstquarter ended June 30, 2021 in accordance with transitional treatment. The effect of this change
was to decrease net sales by ¥11,458 million and cost of sales by ¥11,458 million compared withthe previous accounting method. For more details, please refer to “2. Quarterly Consolidated
Financial Statements and (3) Notes on Quarterly Consolidated Financial Statements (Changes inaccounting policy).”(Unit: Millions of yen)
OperatingprofitNet sales

Ordinary profit

Profitattributable toowners ofparentFirst Quarter Fiscal 2021

67,497

7,496

7,904

4,941

First Quarter Fiscal 2020

70,624

6,653

6,674

5,205

(4.4)

12.7

18.4

(5.1)

Rate of change (%)

Net sales
Sales rose owing to higher overseas market prices for vinyl chloride-related products and solid
sales of semiconductor-related products. Nevertheless, net sales decreased 4.4%, or ¥ 3,127
million compared with the corresponding period of the previous year, to ¥ 67,497 million due tothe application of Accounting Standard for Revenue Recognition, etc.
Cost of sales
Although raw material and fuel costs increased, cost of sales decreased 10.6%, or ¥ 5,145 million
compared with the corresponding period of the previous year, to ¥ 43,203 million due to theapplication of Accounting Standard for Revenue Recognition, etc.
SG&A expenses
SG&A expenses increased 7.5%, or ¥1,175 million compared with the corresponding period of
the previous year, to ¥ 16,796 million mainly due to increases in logistics costs on solid sales andR&D expenses.
2

Operating profit
Operating profit increased 12.7 %, or ¥ 843 million compared with the corresponding period of
the previous consolidated fiscal year, to ¥ 7,496 million. Despite higher raw material and fuelcosts, this increase in operating profit was mainly due to upturn in export prices of vinyl chloride
monomer and solid sales of semiconductor-related products.
Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥386 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, ordinary profit increased 18.4%, or ¥ 1,229 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 7,904 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved by ¥181 million compared with the corresponding periodof the previous consolidated fiscal year.
As a result of the above, profit before income taxes increased 22.2%, or ¥ 1,411 million
compared with the corresponding period of the previous consolidated fiscal year, to ¥ 7,763
million.
Profit after deducting income taxes calculated in an appropriate way decreased 9.5%, or ¥ 525
million compared with the corresponding period of the previous consolidated fiscal year, to¥ 4,986 million.
Profit attributable to owners of parent decreased 5.1%, or ¥ 263 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 4,941 million.

3

(Operating results by segment)
Effective from the first quarter consolidated accounting period for the fiscal year ending March 31,
2022, the Company has reviewed our business segment and changed them to six segments:
Chemicals, Cement, Electronics Materials, Life Science, Eco Business and Others.
Data for the corresponding period of the previous fiscal year has been adjusted to reflect thischange to enable the year-on-year comparison presented as follows.
Sales(Unit: Millions of yen)
Reportable segment

First Quarter
Fiscal 2021
First Quarter
Fiscal 2020
Rate of change
(%)

Total

Figures inquarterly
Adjustment consolidated
profitstatement

Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others24,046

12,214

16,570

7,496

2,218

7,874

70,421(2,923)67,497

18,89519,74913,493

6,753

2,044

19,02879,965(9,341)

70,62427.3(38.2)

22.8

11.0

8.5

(58.6)(11.9)-(4.4)

Operating profit (loss)(Unit: Millions of yen)
Reportable segment
Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others

Total

First Quarter
Fiscal 2021
4,068
562
2,132
1,134
(194)
875
8,579
First Quarter
2,406
1,416
1,501
846
(172)
1,400
7,397
Fiscal 2020
Rate of change
69.1(60.3)
42.0
34.1(37.5)
16.0(%)(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

Figures inquarterly
Adjustment consolidated
profitstatement(1,082)

7,496

(744)

6,653

-

12.7

Chemicals
Caustic soda earnings declined despite the recovery in sales volume, which had decreased due tothe spread of COVID-19. This downturn in earnings was due to manufacturing costs rising as aresult of higher raw material and fuel costs.
Earnings from vinyl chloride monomer increased due to the upturn in export prices.
Vinyl chloride resin earnings were in line with the corresponding period of the previous year.
While manufacturing costs rose as a result of higher raw material and fuel costs, unchanged
earnings reflected progress made in revising selling prices.
As a result of the above, segment net sales increased 27.3% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 24,046 million and operating profit increased
69.1% to ¥ 4,068 million. The segment reported higher earnings on higher sales.
4Cement
Cement earnings decreased despite shipments being in line with the corresponding period of theprevious year. Lower earnings reflected manufacturing costs rising as a result of higher raw
material costs.
As a result of the above, segment net sales decreased 38.2% compared with the corresponding
period of the previous consolidated fiscal year, to ¥12,214 million and operating profit decreased
60.3% to ¥ 562 million. The segment reported lower earnings on lower sales.
Electronic Materials
With regard to Semiconductor-grade polycrystalline silicon, earnings increased owing to firmsales on the back of the introduction of 5G and an increase in remote work.
IC Chemicals earnings decreased despite sales volumes increasing mainly overseas. This
downturn largely reflected higher raw material costs.
Fumed Silica earnings increased owing to higher sales volume centered on applications forsemiconductor abrasives.
Thermal management materials earnings were in line with the corresponding period of theprevious year. Although sales volume was solid, this largely reflected higher R&D expenses at theCenter for Commercialization of Advanced Technology.
As a result of the above, segment net sales increased 22.8% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 16,570 million and operating profit increased
42.0% to ¥ 2,132 million. The segment reported higher earnings on higher sales.
Life Science
Plastic lens-related materials earnings increased owing to a recovery in shipments to Europe andthe United States of eyeglass lens photochromic materials, which had declined as a result of the
spread of COVID-19.
Dental materials earnings grew thanks to a recovery in shipments to Europe and the UnitedStates, which had declined as a result of the spread of COVID-19.
Sales of medical diagnostic systems decreased. This largely reflected a decline in sales volumes oflaboratory information systems and laboratory automation systems.
As a result of the above, segment net sales increased 11.0% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 7,496 million and operating profit increased
34.1% to ¥1,134 million. The segment reported higher earnings on higher sales.

5Eco BusinessTo make the environment segment one of our business pillars of the future, we consolidated theenvironment-related businesses scattered within the Group and newly established them as asegment that aims for new business development.
Ion exchange membranes, plastic window sashes, waste gypsum board recycling, and otherexisting business earnings were all in line with the corresponding period of the previous year.
Consequently, segment net sales increased 8.5% compared with the corresponding period of theprevious year, to ¥ 2,218 million and operating loss amounted to ¥ 194 million (posted operating
loss of ¥ 172 million in the corresponding period of the previous year).

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2021, total assets amounted to ¥ 393,804 million, an increase of ¥ 709 million
compared with those as of March 31, 2021.
This increase primarily reflects the increase of property, plant and equipment, cash and deposits,
and merchandise and finished goods of ¥ 5,540 million, ¥ 1,835 million and ¥ 1,308 million
respectively, despite the decrease of accounts receivable - trade of ¥ 3,649 million.
Total liabilities amounted to ¥ 184,629 million, up ¥ 3,095 million compared with those as ofMarch 31, 2021.
The principal factor is the increase in notes and accounts payable - trade of ¥ 4,370 million, andother current liabilities mainly due to an increase in accounts payable - facilities of ¥ 2,158
million, despite decrease in long-term loans borrowings and current portion of long-term loans
borrowings and provision for bonuses of ¥ 2,431 million and ¥ 1,547 million, respectively.
Net assets totaled ¥ 209,174 million, an increase of ¥ 3,913 million compared with those as ofMarch 31, 2021.
This mainly reflected the increase of ¥ 2,666 in retained earnings primarily due to posting profit
attributable, in spite of decrease due to the payment of dividends.

6

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Notwithstanding anxieties toward raw material and fuel prices, and other factors, Tokuyama’s
business performance is currently trending within anticipated parameters. Therefore, theCompany has not revised the performance forecasts, announced on April 28, 2021. Details will
be disclosed in a timely manner should the need to revise performance forecasts.
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)
6/30/2021

3/31/2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes receivable - trade
Accounts receivable - trade
Lease receivables
Merchandise and finished goods
Work in process
Raw materials and supplies
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
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8

83,68170,901－－
25
14,674
10,995
13,9305,666(115)
199,760

85,516－
8,069
58,791
17
15,982
11,244
14,921
6,692(114)
201,122

105,028(76,427)
28,601
459,039(413,493)
45,54522,827(19,995)
2,831
31,9036,900(2,431)
4,469
10,674
124,025

106,783(77,027)
29,755463,142(415,676)
47,46622,858(20,056)
2,802
31,917
7,909(2,663)
5,246
12,378
129,566

86
43
1,751
1,882

82
39
1,751
1,872

27,171
2,094
16,407
10,6604,854(61)
61,126
187,034
386,794

26,932
2,076
16,381
11,1414,756(45)
61,243
192,682
393,804

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for share awards
Provision for repairs
Provision for decommissioning and removal
Provision for product warranties
Provision for loss on compensation for damage
Provision for environmental measures
Provision for loss on disaster
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors (and other officers)
Provision for repairs
Provision for decommissioning and removal
Allowance for loss on compensation for building materials
Provision for environmental measures
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets
9

3/31/2021(Millions of yen)
6/30/2021

39,547
1,850
8,899
1,204
2,375
3,057
33
4,884
1,100
95
122
40
17
20,07983,30843,9171,950
15,510
1,188
2,603
1,510
19
4,785
1,045
44
118
11
17
22,23894,96282,812
3,671
247
201
1,340
1,028
124
137
1,991
56
6,613
98,224
181,533

73,769
3,520
277
185
1,956
1,115
115
142
2,025
56
6,501
89,666
184,629

10,00023,455
157,332(349)
190,438

10,00023,455
159,998(337)
193,116

3,274
(19)
2,165
2,702
8,122
6,700
205,261
386,794

2,689
(14)
2,481
2,710
7,866
8,192
209,174
393,804

(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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Comprehensive welfare group term insurance expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Subsidy income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on disaster
Loss on tax purpose reduction entry of non-current assets
Loss on disposal of non-current assets
Provision for loss on compensation for damage
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

10

Q1 FY2020 YTD
70,624
48,34922,274(Millions of yen)
Q1 FY2021 YTD
67,497
43,20324,293

9,933
5,688
15,621
6,653

10,745
6,051
16,796
7,496

19
246
226
91
892
1,476

15
281
303
233
1,122
1,956

402
186
866
1,455
6,674

353
182
1,013
1,549
7,904

26
－
26

1
76
78

84
99
－
105
59
348
6,351
839
5,512
306
5,205

－
31
67
120
－
218
7,763
2,777
4,986
44
4,941

(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

Q1 FY2020 YTD
5,512(Millions of yen)
Q1 FY2021 YTD
4,986

917
7
66
3

(584)
4
245
7

(116)

64

878
6,390

(261)
4,724

6,089
301

4,685
39

(4) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Major Changes in Shareholders’ Equity)
Not applicable.
(Changes in significant subsidiaries during this period)
Not applicable.
(Application of accounting methods specific to the preparation of the quarterly
consolidated financial statements)(Calculation of Tax Expense)
The Company rationally estimated the effective tax rate after the application of accounting policy
for deferred tax, which was applied to the profit/loss before income tax for the consolidated
fiscal year under review including the first quarter consolidated accounting period for the
consolidated fiscal year ending March 31, 2022, and calculated the tax expense by multiplying theestimated effective tax rate to the profit/loss before income tax. However, if the application ofsaid estimated effective tax rate reduces the rationality of the calculation of tax expense, theCompany applies the effective statutory tax rate.

12

(Changes in accounting policy)(Application of Accounting Standard for Revenue Recognition)
The Company has applied “Accounting Standard for Revenue Recognition” (ASBJ Corporate
Accounting Standard No. 29, March 31, 2020) and other related standards from the first quarter
consolidated accounting period for the fiscal year ending March 31, 2022, and has decided torecognize revenue at the amount expected to be received in exchange for the promised goods orservices when control of the goods or services is transferred to the customer.
The main change due to the adoption of the Accounting Standard for Revenue Recognition is
the revenue recognition for agent transactions.
The application of the Accounting Standard for Revenue Recognition, etc. is subject to thetransitional treatment provided for in the proviso of Paragraph 84 of the Accounting Standard
for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the first quarter
ended June 30, 2021 was added to or subtracted from the beginning balance of retained earningsof the first quarter consolidated accounting period for the fiscal year ending March 31, 2022, andthus the new accounting policy was applied from the beginning balance; provided, however, thatthe new accounting policy was not retrospectively applied to contracts where recognitions ofnearly all the revenue amounts for periods prior to the beginning of the first quarter ended June30, 2021 were subject to the previous treatment, by applying the method provided for in
Paragraph 86 of the Accounting Standard for Revenue Recognition.
As a result, for the first quarter consolidated accounting period for the fiscal year ending March
31, 2022, net sales decreased by ¥11,458 million and cost of sales decreased by ¥11,458 million.
In addition, there was no impact on operating profit, ordinary profit, profit before income taxes,
and retained earnings at the beginning of the fiscal year ending March 31, 2022.
Due to the application of Accounting Standard for Revenue Recognition, “Notes and accounts
receivable – trade” which were included in “Current assets” in the consolidated balance sheets
for the previous fiscal year, are divided into “Notes receivable – trade” and “accounts receivable– trade” from the first quarter ended June 30, 2021. In accordance with transitional treatment
stipulated in Article 89-2 of the Accounting Standard for Revenue Recognition, figures for theprevious fiscal year have not been restated in accordance with the new approach to presentation.

13

(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ
Corporate Accounting Standard No. 30, July 4, 2019) from the beginning of the first quarter
ended June 30, 2021, and the new accounting policies set forth by the Accounting Standard for
Fair Value Measurement will be applied in the future in accordance with the transitional
treatment set forth in Paragraph 19 of the Accounting Standard for fair Value Measurement andParagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Corporate
Accounting Standard No. 10, July 4, 2019). There is no effect on quarterly consolidated
statements.

(Additional Information)(Application of tax effect accounting associated with the transition from the consolidated
taxation system to the group tax sharing system)
With regard to the transition to the group tax sharing system established under the “Act for
Partial Amendment of the Income Tax Act, etc.” (Act No. 8 of 2020) and the items for which
the nonconsolidated taxation system was revised in line with the transition to the group tax
sharing system, pursuant to Paragraph 3 of the “Practical Solution on the Treatment of Tax
Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax
Sharing System” (ASBJ PITF No. 39, issued on March 31, 2020), the Company and certain
domestic consolidated subsidiaries did not apply the provision of Paragraph 44 of the“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, issued on
February 16, 2018), and the amounts of deferred tax assets and deferred tax liabilities are basedon the provisions of the tax laws before the revision.

14

(5) Segment information
First Quarter Fiscal 2020 (April 1, 2020 –June 30, 2020)
1. Information on sales and profit by reportable segment(Millions of yen)

Reportable segments
Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others*1

Total

Figures inquarterly
Adjustment
consolidated*2
incomestatement*3

18,716

19,704

10,769

6,565

1,977

12,89070,624-70,624

179

45

2,724

187

66

6,137

9,341

(9,341)-

18,8952,406

19,7491,416

13,493
1,501

6,753
846

2,044
(172)

19,0281,400

79,965
7,397(9,341)(744)

70,624
6,653

Sales
Sales to customers
Inter-segment
sales/transfer
Total
Segment profit*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 and the amount of inter-segment eliminations.
*3 With regard to segment profit, operating profit in the quarterly consolidated statement of profit has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others” segment’s
profit.

2. Information on amortization of goodwill and unamortized balance by reportable segment
Not applicable.

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First Quarter Fiscal 2021 (April 1, 2021 –June 30, 2021)
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 (loss)

Total

Figures inquarterly
Adjustment
consolidated*2
incomestatement*3

5,423

67,497-67,497

0

2,451

2,923

(2,923)

-

2,218
(194)

7,874
875

70,421
8,579(2,923)(1,082)

67,497
7,496

Chemicals

CementElectronic
Materials

Life
ScienceEcoBusiness

Others*1

23,955

12,031

16,377

7,491

2,217

90

182

192

5

24,046
4,068

12,214562

16,570
2,132

7,496
1,134

*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 (loss) 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 (loss), operating profit in the quarterly consolidated statement of profit has been
calculated by making an adjustment to the sum total of the reportable segments’ profit and the “Others” segment’s
profit.

2. Information on changes in reportable segments
Effective from the first quarter consolidated accounting period for the fiscal year ending March 31,
2022, the Company has reviewed our business segment and changed them to six segments:
Chemicals, Cement, Electronics Materials, Life Science, Eco Business and Others.
The segment information for the first quarter of the consolidated accounting period for the fiscal
year ending March 31, 2021 is disclosed based on the reporting segment classification after thischange.
The Company has applied the Accounting Standard for Revenue Recognition, etc. and changed
the method of accounting for revenue recognition from the beginning of the first quarter ended
June 30, 2021 as described in above “Changes in accounting policy.” Therefore, the Company has
similarly changed the measuring method of segment profit or loss.
As a result of this change, net sales in the Chemicals, Cement, Electronics Materials, Eco Businessand Others segments decreased by ¥301 million, ¥10,642 million, ¥31 million, ¥171 million and¥5,303 million, respectively, compared with the previous method for the first quarter consolidated
accounting period for the fiscal year ending March 31, 2022.
The total decrease in net sales after taking into account intersegment eliminations and corporate
expenses is ¥11,458 million.
There is no effect on segment profit (loss).
3.Information on amortization of goodwill and unamortized balance by reportable segment
Not applicable.

16