Summary of Consolidated Financial Statements for the First Quarter Fiscal 2017 (JPGAAP)
July 28, 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 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 June 30, 2017 (April 1, 2017 - June 30, 2017)(1) Performance

Note: All amounts are rounded down to the nearest million yen.
Net sales
Year-on(millions ofyear change
yen)
[%]

Operating income
Year-on(millions ofyear change
yen)
[%]

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

First Quarter Fiscal 2017
72,473
(0.9)
8,493
(8.7)
7,752
19.8
First Quarter Fiscal 2016
73,163
(0.8)
9,302
216.5
6,470
335.2
(Note) Comprehensive income: 1st Q FY17: 3,734 million yen [ - %] 1st Q FY16: 3,056 million yen [40.6%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

First Quarter Fiscal 2017(8,143)(28.09)First Quarter Fiscal 2016
5,545
15.91
15.89
*From the first quarter consolidated accounting period for the fiscal year ending March 31, 2018, the Company haschanged its presentation method and, for the first 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 theprevious fiscal year after having retroactively applied the appropriate presentation method. For more details, pleaserefer to “(4) Notes on Quarterly Consolidated Financial Statements (Changes of Presentation Method)” in “2.
Quarterly Consolidated Financial Statements” on page 12 of the Accompanying Materials to this Summary of
Quarterly Consolidated Financial Statement.
(2) Consolidated financial position

Jun 30, 2017
Mar 31, 2017
(Reference) Shareholders' equity:

Total assets

Net assets(millions of yen)(millions of yen)390,571424,433
Jun 30, 2017:

Shareholders’Equity ratio(%)

106,575
135,976
97,385 million yen

Net assets per
share
(yen)

24.9
279.9929.9305.49Mar 31, 2017: 127,015 million yen

2. Dividends（Period）

1st quarter(yen)

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

(yen)

(yen)

Total
(yen)

Fiscal 2016, ended
0.00
0.00
0.00
Mar 31, 2017
Fiscal 2017, ending
Mar 31, 2018
Fiscal 2017
2.00
10.00
（Forecast）(Note) Revision of the latest dividends forecast: Yes*Dividends described above are the status of dividend related to common stock. As for the dividends related to classshares, please refer to “(Reference) Dividends for Class A shares” on page 4 of this Summary of Quarterly
Consolidated Financial Statement.

1* As the Company is planning to implement a common share consolidation on a five into one basis, with October 1,
2017, deemed its effective date, the (forecast) amount for the year-end dividend per share for the fiscal year ending
March 31, 2018, is stated having taking into account the impact of the share consolidation, while the annual
dividend amount is given as “–”. In the event of the share consolidation not being taken into account, the (forecast)
year-end dividend for the fiscal year ending March 31, 2018, will be ¥2 per common share , and the annual dividend
per share will be ¥4 per common share. For more details, please refer to “Caution Pertaining to Appropriate Use of
Performance Forecast and Other Particular Items” on page 3 of this Summary of Quarterly Consolidated Financial
Statement.

3. Consolidated performance forecast for fiscal 2017 (April 1, 2017 - March 31, 2018)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Net sales
Operating income Ordinary income Profit
owners of parent
per share(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 haschanged its presentation method, and the change in the appropriate presentation method has been retroactively
applied and reclassified for the 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 bycomparison with the numerical value after reclassification.
* With regard to the net income per share in the consolidated performance forecast for the full fiscal year ending
March 31, 2018, the impact of the share consolidation is taken into account. For more details, please refer to“Caution Pertaining to Appropriate Use of Performance Forecast and Other Particular Items” on page 3 of thisSummary of Quarterly Consolidated Financial Statement.

*Notes(1) Changes in significant subsidiaries during this period: 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.
For more details, please refer to “(3) Notes on Quarterly Consolidated Financial Statements (Change insignificant consolidated subsidiaries during the three months ended June 30, 2017)” in “2. Quarterly
Consolidated Financial Statements” on page 9 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 (3)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 of
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:
2

No
No
No
No

(4) Number of shares issued (in common stock)
Number of shares issued at end of period First Quarteri.
(including treasury stock):
Fiscal 2017:
First Quarterii. Number of treasury stock at end of period:
Fiscal 2017:
First Quarteriii. Average number of shares over period:
Fiscal 2017:349,671,876

Fiscal 2016:

349,671,876

1,853,332

Fiscal 2016:

1,850,780

347,819,249

First Quarter
Fiscal 2016:

347,838,880(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.
(Regarding Dividend and Performance Forecast after Share Consolidation)
At the 153rd Ordinary General Meeting of Shareholders held on June 23, 2017, the Company approved a reverse
stock consolidation and plans to consolidate shares at 1 share per 5 shares of common stock with October 1, 2017,as the effective date. In accordance with this decision, the dividend forecast and consolidated performance
forecast for the fiscal year ending March 31, 2018, converted prior to the share consolidation are as follows:
1. Dividend forecast for fiscal year ending March 31, 2018:
Dividend per share at September 30, 2017: ¥2 (Note 1), at March 31, 2018: ¥2, annual dividend per share: ¥4.
(Note 1) Dividends at the end of the second quarter will be paid for the number of shares held before the shareconsolidation.
2. Consolidated performance forecast for full fiscal year ending March 31, 2018, net income per share ¥32.70 at
March 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) The Company, at its Board of Directors meeting held on April 28, 2017, made a resolution to acquire all of the ClassA shares issued by the Company (total paid-in amount: 20 billion yen) in exchange for cash in accordance with theprovisions of Article 6-2, paragraph 5 of the Company’s Articles of Incorporation (call options, the consideration for whichis cash) and cancel the shares on condition of the acquisition thereof in accordance with the provisions of Article 178 of theCompanies Act. All of the Class A shares have been acquired and cancelled 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 first quarter fiscal 2017 (April 1, 2017 - June 30, 2017) aresummarized as follows:(Unit: Millions of yen)
Net sales

Operating income

Ordinary income

Profit/loss
attributable toowners of parent

First Quarter Fiscal 2017

72,473

8,493

7,752

(8,143)First Quarter Fiscal 2016

73,163

9,302

6,470

5,545

(0.9)

(8.7)

19.8

-

Rate of change (%)

Net sales
Consolidated net sales decreased 0.9%, or ¥689 million compared with the corresponding periodof the previous year, to ¥72,473 million. Despite an increased sales volume in major products
and revision in selling prices of caustic soda and petroleum products, this was largely attributableto removal of Tokuyama Malaysia Sdn. Bhd. and Figaro Engineering Inc. from the Company’s
scope of consolidation.
Cost of sales
Cost of sales increase 1.2%, or ¥606 million compared with the corresponding period of theprevious year, to ¥49,349 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 3.2%, or ¥486 million compared with the corresponding period of
the previous year, to ¥14,631 million. Despite the increase in distribution costs associated with
the increase in sales volumes, this decrease primarily reflects removal of Figaro Engineering Inc.
from the Company’s scope of consolidation.
Operating income
Operating income decreased 8.7%, or ¥809 million compared with the corresponding period of
the previous year, to ¥8,493 million. This was due mainly to a upturn in fuel and raw material
costs.

2

Non-operating income/expenses, Ordinary income
Non-operating income/expenses improved ¥2,091 million compared with the corresponding
period of the previous year.
As a result of the above, ordinary income increased 19.8%, or ¥1,282 million compared with thecorresponding period of the previous year, to ¥7,752 million.
Extraordinary income/losses, Income/loss before income taxes, Profit/loss, Profit/loss
attributable to owners of parent
Extraordinary income/losses deteriorated by ¥10,724 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, loss before income taxes was¥542 million, which deteriorated by ¥9,442
million compared with the corresponding period of the previous year.
Loss after deducting income taxes calculated in an appropriate way was ¥4,666 million, which
deteriorated by ¥10,544 million compared with the corresponding period of the previous year.
Loss attributable to owners of parent was ¥8,143 million, which deteriorated by ¥13,688 million
compared with the corresponding period of the previous year.

3

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

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

11,826

13,113

81,682(9,208)72,473

19,404

13,853

13,161

82,765(9,601)

73,1638.2(14.6)

(0.4)

(1.3)

-

(0.9)

Reportable segment

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

Chemicals

Specialty
Products

CementLife &
Amenity

22,70813,03221,002

20,21016,13412.4(19.2)

Operating income(Unit: Millions of yen)

Adjustment

Figures inquarterly
consolidated
incomestatement

8,507

(14)

8,493

1,595

9,868

(566)

9,302

(3.6)

(13.8)-(8.7)

Reportable segment

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

Others

Total

781

1,538

1,575

1,772

(32.2)(55.9)

Chemicals

Specialty
Products

CementLife &
Amenity

3,568

1,551

1,068

2,870

2,055

24.3

(24.5)(Note) Sales and operating income 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. Sales for the domestic customers was steady and therevision of selling price was progressed.
With regard to soda ash and calcium chloride, sales was almost same as the corresponding periodof previous fiscal year. Sales volume remained at the same level.
As a result of the above, segment net sales increased 12.4% compared with the corresponding
period of the previous year, to ¥22,708 million and operating income increased 24.3% to ¥3,568
million. The segment reported higher earnings on higher sales.

4Specialty Products
Sales of polycrystalline silicon decreased. Although there is a strong trend to the market ofsemiconductor-related products, this was primarily due to the decline of the sales amount ofsolar-grade polycrystalline silicon and the difference of shipment schedule ofsemiconductor-grade polycrystalline silicon compared with the corresponding period of previous
fiscal year.
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 19.2% compared with the corresponding
period of the previous year, to ¥13,032 million and operating income decreased 24.5% to ¥1,551
million. The segment reported lower 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 recycling and environment-related business, the Company accepted a higher volume ofwaste for the higher waste disposable fees compared with the previous fiscal year. As a result of
this, sales increased from the 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 8.2% compared with the corresponding
period of the previous year, to ¥21,002 million and operating income decreased 32.2% to ¥1,068
million. The segment reported lower earnings on higher sales.
Life & Amenity
Sales of active pharmaceutical ingredients decreased compared with the corresponding period of
the previous year, owing mainly to the downswing in the sales volumes of genericpharmaceuticals.
With regard to microporous film, sales of such applications as sanitary articles including5

disposable diapers decreased at oversea subsidiaries. As a result of this, sales decreased comparedwith the corresponding period of the previous year.
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 medical diagnosis systems, sales were down compared with the corresponding
period of the previous year. This largely reflected the decrease of sales targeting large-scale
projects compared with the corresponding period of the previous fiscal year.
In gas sensors, Figaro Engineering Inc. was removed from the Company’s scope of consolidation
effective from the second quarter of the 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 14.6% compared with the corresponding
period of the previous year, to ¥11,826 million and operating income decreased 55.9% to ¥781
million. The segment reported lower earnings on lower sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2017, total assets amounted to ¥390,571 million, an decrease of ¥33,862 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, notes and accounts receivable – trade, raw materials and supplies of¥22,671 million, ¥6,964 million, ¥4,483 million and ¥4,137 million respectively. Due to theremoval of Tokuyama Malaysia Sdn. Bhd. from the consolidation, asset decreased by ¥20,522
million.
Total liabilities amounted to ¥283,995 million, down ¥4,461 million compared with those as ofMarch 31, 2017.
This largely reflected the downturn in the balances of provision for loss on purchase contract,
notes and accounts payable―trade of ¥2,671 million and ¥2,091 million, respectively. Due to theremoval of Tokuyama Malaysia Sdn. Bhd. from the consolidation, liabilities decreased by ¥4,512
million.
Net assets totaled ¥106,575 million, an decrease of ¥29,400 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, and decrease ofaccumulated other comprehensive income of ¥8,143 million as a result of posting of loss
attributable to non-controlling interests.
6(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
6/30/2017
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

98,927
69,462
6
13,506
9,584
12,4291,621
17,550△170
222,918

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

98,830△72,230
26,599440,840△401,205
39,63521,890△19,963
1,927
31,2983,548△1,435
2,113
10,695112,269

2,367
35
2,384
4,787

2,113
32
1,624
3,770

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

20,185
2,818
16,184
9,437
3,135
△147
51,612
167,652
390,571Millions of yen
3/31/2017
6/30/2017
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 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
79,15334,9432,367
16,049
574
944
1,292
3,914
71
－
18,08578,241

34,400160,555
1,787
268
143
2,829
318
287
1,430
6
7,275
209,303
288,457

34,400
158,083
1,684
286
126
1,914
301
287
1,448
6
7,213
205,754
283,995

10,00041,54572,511△1,446
122,609

10,00019,91963,606△1,44892,076

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

882
△281
1,828
2,879
5,309
9,189
106,575
390,5718,960
135,976
424,433

(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
Dividends Income Of Group Term Insurance
Trial products income
Refund of fixed asset tax
Other
Total non-operating income
Non-operating expenses
Interest expenses
Group Term Insurance Expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Subsidy income
Gain on insurance adjustment
reversal of provision for loss on purchase contract
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 environmental measures
Loss on transfer from business divestitures
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent
10

Millions of yen
Q1 FY2016
Q1 FY2017
73,16372,47348,74349,34924,42023,124
9,394
5,722
15,117
9,302

9,752
4,878
14,631
8,493

11
144
212
175
23
250
237
1,055

57
138
295
155
104
－
279
1,032

1,096
206
2,583
3,886
6,470

1,029
224
517
1,772
7,752

3
1
2,298
－
517
2,820

28
－
45
31
－
105

1
4
50
101
－
101
98
33
391
8,900
3,022
5,877
332
5,545
13,020(99,520)
1,043(100 563)(100,563)

－
－
34
214
8,059
－
－
92
8,400
△542
4,124
△4,666
3,476△8,143(14,870)
53,396
1,231
52 16552,165

(3) Quarterly Consolidated Statements of Comprehensive Income

Profit (loss)
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, net of tax
Share of other comprehensive income of entities accounted for using equity
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

11

Millions of yen
Q1 FY2016
Q1 FY2017
5,877△4,666△468△169△2,08618△115△2,821
3,056

565
△7
269
46
58
932
△3,7342,873
182△7,2403,506

(4) Notes on Quarterly Consolidated Financial Statements(Change of Significant Consolidated Subsidiaries during the Three Months ended June 30, 2017)
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 first 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 income/loss before income tax for the fiscal year under review
including the first quarter consolidated accounting period for the fiscal year ending March 31, 2018, andcalculated the tax expense by multiplying the estimated effective tax rate to the income/loss before income
tax. However, if the application of said estimated effective tax rate reduces the rationality of the calculationof 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 “Cost of idle operations,”
which was included in “Others” under “Non-operating expenses” during the first quarter of the previous
fiscal year, is included under “Cost of sales” from the first quarter consolidated cumulative period for the
purpose of stricter cost control. In order to reflect this change in presentation method, we have reclassified
the quarterly consolidated financial statements for the first quarter of the previous fiscal year.
As a result, for the first quarter of the previous consolidated fiscal year, ¥228 million which was included in“Others” under “Non-operating expenses” has been reclassified under “Cost of sales.”12(5) Segment information
First Quarter Fiscal 2016 (April 1, 2016 – June 30, 2016)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement19,999211
20,2102.870

13,3882,746
16,134
2,055

19,37726
19,404
1,575Life &
Amenity

13,342511
13,853
1,772

Others*1

Total

7,056
6,105
13,161
1,595

73,1639,601
82,765
9,868

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(9,601)(9,601)(566)

73,16373,1639,302*1 The “Others” segment comprises businesses other than those of the reportable segments. Specifically, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment income adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by making an adjustment to the sum total of the reportable segments’ income and the “Others”
segment’s income.

First Quarter Fiscal 2017 (April 1, 2017– June 30, 2017)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement22,532
175
22,708
3,568

10,094
2,937
13,032
1,551

20,95646
21,002
1,068

Life &
Amenity

11,389436
11,826781

Others*1

7,500
5,612
13,113
1,538

Total

72,4739,208
81,682
8,507

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(9,208)(9,208)(14)

72,47372,473
8,493*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 income adjustment amount consists mainly of basic R&D expenses that are not allocable to a
specific reportable segment.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by making an adjustment to the sum total of the reportable segments’ income and the “Others”
segment’s income.

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 first quarter of the previous fiscal year, is included under “Cost of
sales” from the first quarter consolidated cumulative period for the purpose of stricter cost control.

13