April 30, 2014

Summary of Fiscal 2013
(The Fiscal Year ended March 31, 2014)
Tokuyama Corporation
1. Consolidation
Classification
The number of consolidated
subsidiaries
The number of subsidiaries andaffiliates by the equity method

Fiscal 2013

Fiscal 2012

Changes

53

49

+4

9

9

0

2. Summary of performance and other corporate data (consolidated)(Unit: Billions of yen, except number of employees)
Fiscal 2013
Fiscal 2012
Changes
287.3
258.6
+28.6
20.2
6.7
+13.4
14.9
3.2
+11.7
10.2
-37.9
+48.1
29.37
-108.98+138.35
61.0
97.5
-36.4
16.7
23.2
-6.4
8.7
10.0
-1.3
-2.1
-1.7
-0.3

Net sales
Operating income
Ordinary income
Net income/loss
Net income/loss per share (Unit: yen)
Capital expenditures
Depreciation and amortization
R&D expenses
Financial income and expenses

As of March 31,
2014
240.7
5,756

Interest-bearing debt
Number of employees

As of March 31,
2013
187.7
5,651

Changes+53.0+105

3. Net sales and operating income by business segment (year on year)(Unit: Billions of yen)

FY2013

FY2012

Changes

Net sales

OperatingincomeNet sales

OperatingincomeNet sales

OperatingincomeChemicals

86.4

2.2

77.3

0.4

+9.1

+1.8

Specialty Products

52.4

6.0

52.8

0.3

-0.3

+5.6

Cement

78.9

6.6

69.9

5.3

+9.0

+1.3

Life & Amenity

57.0

4.8

51.0

2.9

+6.0

+1.9

Others

47.2

4.1

40.1

2.6

+7.1

+1.5

Total

322.2

24.0

291.3

11.6

+30.9

+12.3

Inter-segment
eliminations andcorporate-wide expenses

‐34.9

‐3.7

‐32.6

‐4.9

-2.2

+1.1

Consolidated results

287.3

20.2

258.6

6.7

+28.6

+13.4

○ In the Chemicals segment, difficulties at the Company’s vinyl chloride monomer (VCM) plant,
which occurred in the previous fiscal year, were overcome. In addition, sales volumes of caustic－1－soda recovered. Due mainly to these factors, earnings in the segment increased comparedwith the previous fiscal year.
○ In the Specialty Products segment, although sales volumes of polycrystalline silicon decreased,
earnings in the segment increased compared with the previous fiscal year. This was largely
attributable to a decrease in depreciation expenses after the impairment of manufacturing
facilities in the previous fiscal year.
○ In the Cement segment, sales volume increased due to the recovery in demand in Japan. In
addition, the Company made Tokuyama Nouvelle Calédonie S.A. a subsidiary in June 2013.
Due to these factors, earnings rose compared with the previous fiscal year.
○ In the Life & Amenity segment, earnings increased owing chiefly to an increase in eachproduct’s sales volume and the business reconstruction of plastic window sashes.

4. Net sales and operating income by business segment (forecasts)(1) Net sales and operating income by business segment (full year comparison)(Unit: Billions of yen)

FY2014 Forecast

FY2013 Results

Changes

Net sales

OperatingincomeNet sales

OperatingincomeNet sales

OperatingincomeChemicals

91.5

4.0

86.4

2.2

+5.0

+1.7

Specialty Products

60.5

3.0

52.4

6.0

+8.0

-3.0

Cement

81.0

5.5

78.9

6.6

+2.0

‐1.1

Life & Amenity

58.0

4.0

57.0

4.8

+0.9

-0.8

Others

49.5

5.0

47.2

4.1

+2.2

+0.8

Total

340.5

21.5

322.2

24.0

+18.2

-2.5

Inter-segment
eliminations andcorporate-wide expenses

-37.5

-5.0

‐34.9

‐3.7

-2.5

-1.2

Consolidated results

303.0

16.5

287.3

20.2

+15.6

-3.7

(2) Assumptions of performance forecasts for fiscal 2014

Domestic Naphtha
Price (¥/kl)
Exchange Rate (¥/$)

Fiscal 2014

Oct 2013-Mar
2014

Apr-Sep
2013

67,00069,90064,700

100

102

99

Although we will continue to make Companywide efforts to adhere strictly to a policy of cost reduction
in fiscal 2014 as well, we forecast a decrease in earnings due largely to an increase in depreciation－2－

expenses at Tokuyama Malaysia Sdn. Bhd. and an increase in repair expenses.

In each segment’s performance forecast, we have taken the following factors into account.
○ Chemicals: Revisions to selling prices○ Specialty Products: Start of sales of polycrystalline silicon manufactured at Tokuyama Malaysia
Sdn. Bhd.
○ Cement: An increase in distribution costs○ Life & Amenity: Sales expansion in overseas markets－3－Summary of Consolidated Financial Statements for Fiscal 2013 (JP GAAP)(The Fiscal Year ended March 31, 2014)
April 30, 2014
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL http://www.tokuyama.co.jp/)
Code number:
4043
Representative:
Kazuhisa Kogo
President and Representative Director
Contact:
Taro Kobayashi
General Manager, Corporate Communications & Investor Relations Dept.
+81-3-6205-4832
Scheduled date for the Ordinary General Meeting of Shareholders:June 25, 2014
Scheduled date of year-end dividends payout:
June 26, 2014
Scheduled date for the filing of the consolidated financial statements: June 26, 2014
Preparation of supplementary explanatory materials: Yes
Business results IR briefing to be held:Yes

1. Consolidated results for fiscal year ended March 31, 2014 (April 1, 2013 – March 31, 2014)
Note: All amounts are rounded down to the nearest million yen.
% indicates year-on-year changes.

(1) Performance

Net sales

Operating income(millions of yen)

Fiscal 2013
Fiscal 2012

287,330
258,632[%](millions of yen)

Ordinary income[%]

Net income(millions of yen)[%](millions of yen)

11.1
(8.4)

20,270199.3
14,965363.0
6,772(50.6)
3,232 (72.0)(Note) Comprehensive income: FY13: 13,754 million yen [－%] FY12: (30,243) million yen [－%]Net income per
share

Diluted net income Net income to Ordinary income to Operating income
per shareshareholders’ equity
total assets
to net sales(yen)

Fiscal 2013
Fiscal 2012

[%]

－
－

10,218(37,916)

(yen)

[%]

－
－

29.37
(108.98)[%]

4.6(16.2)

[%]

2.7
0.6

(Reference) Equity in earnings of unconsolidated subsidiaries and affiliates: FY13: 519 million yen

7.1
2.6

FY12: 433 million yen(2) Financial position

Total assets
Mar 31, 2014
Mar 31, 2013
(Reference)

Shareholders’ equity
ratio

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

576,315
518,251

236,453
223,871

Shareholders' equity:

FY13:

Net assets per share

[%]

(yen)

660.18625.2939.9
42.0
229,667 million yen

FY12:217,554 million yen(3) Cash flows

Cash flows fromoperating activities
Fiscal 2013
Fiscal 2012

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the end of
the year(millions of yen)(millions of yen)(millions of yen)(millions of yen)

34,105
17,071(64,402)(60,673)

45,93936,46569,97352,431

2. Dividends（Period）
Fiscal 2012
Fiscal 2013
Fiscal 2014
（Forecast）

1st
quarter
(yen)

----

Annual dividens
3rd
Year2ndend
quarter quarter

Total

Total dividends
paid(Total)

(yen)

(yen)

(yen)

(yen)

(millions of yen)

-3.00
3.00

----

3.00
3.00
3.00

3.00
6.00
6.00

1,043
2,087

－4－

Dividend
payout ratio(Consolidated)
[%]

－
20.4
－

Dividend on net
assets ratio(Consolidated)
[%]

0.4
0.9

3. Consolidated performance forecast for fiscal 2014 (April 1, 2014 – March 31, 2015)(% indicates the rate of change over the corresponding previous periods respectively)

Net salesFirst Half
Fiscal 2014
Fiscal 2014

Operating income

Ordinary income(millions ofyen)

Net income pershare

Net income(millions of
yen)

[%]

(millions of
yen)

[%]

146,000

8.1

7,500

(4.0)

4,500 (26.2)

3,000 (33.6)

8.62

303,000

5.5

16,500 (18.6)

10,000 (33.2)

6,500 (36.4)

18.68

[%]

(millions of
yen)

[%]

(yen)

* Cautions pertaining to the appropriate use of performance forecasts and other particular items
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 besubstantially different from the actual performance etc. because of various factors that may arise from now on.

*Notes(1) Changes of significant subsidiaries in the scope of consolidation during this period: No
Addition to the scope of consolidation: Reduction from the scope of consolidation: (2) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes of accounting policies by revision of accounting standards: Yes
ii. Changes of accounting policies other than the above:Noiii. Changes in accounting estimates:
No
iv. Retrospective restatements:
No(3) Number of shares issued (in common stock)
Number of shares issued at end of periodi.
(including treasury stock):ii. Number of treasury stock at end of period:iii. Average number of shares over period:

FY13:

349,671,876

FY12:

349,671,876

FY13:
FY13:

1,782,644
347,909,049

FY12:
FY12:

1,742,749
347,937,571(Reference) Summary of Non-Consolidated Operating Results
1. Non-consolidated results for fiscal year ended March 31, 2014 (April 1, 2013 – March 31, 2014)
Note: All amounts are rounded down to the nearest million yen.
% indicates year-on-year changes.

(1) Performance

Net sales

Operating income(millions of yen)

Fiscal 2013
Fiscal 2012

177,863
164,207[%]8.3(11.3)Net income pershare

16,316
4,859

Ordinary income[%](millions of yen)

235.8
(53.1)

10,309(13)

Net income
[%]

－
－

(millions of yen)

[%]

－
－

10,461(38,215)

Diluted net income
per share(yen)

Fiscal 2013
Fiscal 2012

(millions of yen)

30.07
(109.84)

(yen)

－
－

(2) Financial position

Total assets
Mar 31, 2014
Mar 31, 2013
(Reference)

Shareholders’ equity
ratio

Net assets(millions of yen)(millions of yen)490,778439,533

202,865
195,243

Shareholders' equity:

FY13:

－5－

[%]

(yen)

583.13561.1641.3
44.4
202,865 million yen

Net assets per share

FY12:

195,243 million yen

2. Non-consolidated performance forecast for fiscal 2014 (April 1, 2014 – March 31, 2015)(% indicates the rate of change over the corresponding previous periods respectively)

Net salesFirst Half
Fiscal 2014
Fiscal 2014

Ordinary income(millions ofyen)

Net income pershare

Net income(millions of
yen)

[%]

90,0006.8

4,500 (20.8)

4,000 (28.4)

11.50

191,000

7.4

7,000 (32.1)

6,500 (37.9)

18.68

[%]

(millions of
yen)

[%]

(yen)

(Note) Notice on the implementation of audit proceduresThis Summary of Consolidated Financial Statements is not subject to audit procedures of the consolidated financial statements inline with the Financial Instruments and Exchange Act. At the point of disclosure of this Summary of Consolidated Financial
Statements, audit procedures of the consolidated financial statements in line with the Financial Instruments and Exchange Act areunderway.

* Cautions pertaining to the appropriate use of performance forecasts and other particular items
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 besubstantially different from the actual performance etc. because of various factors that may arise from now on.

－6－

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
1. Operating Business results for the fiscal year under review[1] Overview of performance for the fiscal year under review
During the fiscal year under review (April 1, 2013 to March 31, 2014), despite theinstability of emerging nations’ economies, the global economy was on track for a gradual
recovery. In addition to the recovery in private demand on the back of the firm
employment situation in the U.S., this was largely attributable to signs of recovery in theEuropean economy.
On the other hand, with regard to the Japanese economy, productin and employment
recovered on the back of correction of the yen appreciation and higher stock prices.
Under such situations, the economy was headed for a gradual recovery led by robust
domestic demand which was mainly personal consumption.
Under these circumstances, the Tokuyama Group reported a substantial increase in both
net sales and operating income compared with the previous fiscal year. This was
attributable to polycrystalline silicon business reconstruction, an improvement in earnings
in other businesses, and Companywide profit improvement.

(Unit: Billions of yen)
Net sales

Operating income

Ordinary income

Net income (loss)

Fiscal 2013

287.3

20.2

14.9

10.2

Fiscal 2012

258.6

6.7

3.2

(37.9)

Rate of change (%)

11.1

199.3

363.0

-

Net sales
Despite such negative factors as decreased sales volumes of polycrystalline silicon,
consolidated net sales increased 11.1%, or ¥28.6 billion compared with the previous fiscal
year, to ¥287.3 billion. In addition to increased sales volumes of cement and related
products, this was largely attributable to revisions to the selling price of petrochemicals
and the increase in sales volume after overcoming difficulties at the Company’s vinyl－7－chloride monomer (VCM) plant.
Cost of sales
Despite decreased sales volumes of polycrystalline silicon, Companywide thoroughgoing
cutbacks in costs and other factors, cost of sales increased 8.1%, or ¥15.4 billion
compared with the previous fiscal year, to ¥206.9 billion, due chiefly to increased sales
volumes of such products as VCM and cement as well as domestic naphtha price hikes.
SG&A expenses
Despite such negative factors as higher distribution costs as a result of increased sales
volumes of cement and related products, SG&A expenses decreased 0.5%, or ¥0.2 billion
compared with the previous fiscal year, to ¥60.0 billion, due mainly to Companywide
thoroughgoing cutbacks in costs.
Operating income
Operating income increased 199.3%, or ¥13.4 billion compared with the previous fiscal
year, to ¥20.2 billion, due chiefly to Companywide thoroughgoing cutbacks in costs.
Non-operating income/expenses, Ordinary income
Non-operating income/expenses deteriorated by ¥1.7 billion compared with the previous
fiscal year, due chiefly to borrowing-related costs which arose from the procurement offunds through a subordinated loan. As a result of this, ordinary income improved by¥11.7 billion compared with the previous fiscal year, to ¥14.9 billion (up 363.0% year onyear).
Extraordinary gains/losses, Income/loss before income taxes, Income/loss
before minority interests, Net income/loss
Extraordinary gains/losses improved by ¥29.2 billion compared with the previous fiscal
year. This was largely attributable to the fact that in the fiscal year under review the
Company posted neither impairment loss on polycrystalline silicon and concurrent fumed
silica manufacturing facilities nor loss from inventory revaluation, both of which wereposted in the previous fiscal year.
As a result of the above, income/loss before income taxes improved by ¥41.0 billion－8－compared with the previous fiscal year, to income of ¥12.9 billion.
Income/loss before minority interests improved by ¥48.0 billion from the previous fiscal
year, to income of ¥10.4 billion, mainly because the Company did not post a reversal ofdeferred tax assets in the fiscal year under review, which was posted in the previous fiscal
year.
After deducting minority interests, the Company recorded net income of ¥10.2 billion.
Net income/loss improved by ¥48.1 billion from the previous fiscal year.

[2] Operating performance by business segment(Operating results by segment)
Sales(Unit: Millions of yen)
Reportable segment

Figures in
consolidated
incomestatement

Others

Total

Adjustment

57,05747,281

322,262(34,931)

287,330

69,96151,00940,156291,324(32,691)

258,632

12.9

11.9

17.7

10.6

-

11.1

Chemicals

Specialty
Products

CementFiscal 2013

86,45752,48378,981

Fiscal 2012

77,352

52,844Rate of change (%)

11.8

(0.7)

Life &
Amenity

Operating income(Unit: Millions of yen)
Reportable segment
Adjustment

Figures in
consolidated
incomestatement

Others

Total

4,863

4,168

24,041(3,770)20,270

5,333

2,932

2,615

11,699(4,927)

6,772

25.3

65.8

59.4

105.5

-

199.3

Chemicals

Specialty
Products

Fiscal 2013

2,235

6,090

6,682

Fiscal 2012

426

391

Rate of change (%)

424.1

-

CementLife &
Amenity(Note 1) Sales and operating income in each segment include inter-segment transactions.
(Note 2) From fiscal 2013, the Advanced Components segment was renamed the Life & Amenity segment. We onlychanged the segment’s name and therefore the product lines of the said reportable segment have not been changed.
Also, with the aim of implementing more proper management of operating results, the Company changed theaccounting treatment method for “Adjustment” expenses. By this change, the Company has directly imposed expenses
clearly related to specific segments, which had been previously classified as “Adjustment,” on specific segments.
Sales and operating income for fiscal 2012 have been recalculated to reflect the above-mentioned changes.

－9－Chemicals
With regard to vinyl chloride monomer (VCM), sales increased compared with theprevious fiscal year. In addition to the fact that difficulties at the Company’s VCM plant,
which occurred in the previous fiscal year, were overcome, this was attributable to a risein export prices resulting from the weaker yen.
With regard to caustic soda, the facility utilization rate of the electrolysis plant rose, as
the above-mentioned difficulties at the VCM plant were overcome. Due to this factor,
domestic sales volume recovered.
With regard to polyvinyl chloride (PVC), we worked to revise selling prices to absorb arise in the price of domestic naphtha.
As a result of the above, segment net sales increased 11.8% compared with the previous
fiscal year, to ¥86.4 billion and operating income increased 424.1% to ¥2.2 billion. The
segment reported higher earnings on higher sales.

Specialty Products
With regard to semiconductor-grade polycrystalline silicon, although market conditions
were about level with those of the previous fiscal year, sales decreased due to a priceslump in the supply chain. With regard to solar cell-grade polycrystalline silicon, themarket remained sluggish due to excess supply. Against this backdrop, we adopted asales strategy that focused on profits and as a result, sales volume was low. Despite theabove, earnings in the polycrystalline silicon business increased compared with theprevious fiscal year, due largely to a decrease in depreciation expenses after the
impairment of manufacturing facilities in the previous fiscal year.
With regard to fumed silica and high-purity chemicals for electronics manufacturing, we
revised selling prices in order to absorb the rise of raw material and fuel prices. In
addition to this, due to a rise in export prices arising from the weaker yen, sales of theseproducts increased compared with the previous fiscal year.
As a result of the above, segment net sales decreased 0.7% compared with the previous－10－fiscal year, to ¥52.4 billion, while operating income was ¥6.0 billion. The segment
reported higher earnings on lower sales.

CementWith regard to cement, sales volume increased due to the recovery in demand in Japan.
In addition, the Company made Tokuyama Nouvelle Calédonie S.A. a subsidiary in June
2013. Due to these factors, sales increased compared with the previous fiscal year.
In the recycling and environment-related business, the Company accepted a larger
volume of waste as a result of its higher cement production.
As a result of the above, segment net sales increased 12.9% compared with the previous
fiscal year, to ¥78.9 billion and operating income increased 25.3% to ¥6.6 billion. The
segment reported higher earnings on higher sales.

Life & Amenity
Sales volumes of plastic lens-related materials increased owing to the recovery fromdamage to the supply chain caused by the flooding in Thailand, which occurred in 2011.
With regard to polyolefin film, we revised selling prices to absorb price increases in raw
materials and worked to expand sales. Due to these efforts, sales increased comparedwith the previous fiscal year.
With regard to dental materials and equipment, sales increased due largely to sales
expansion of products shipped to overseas markets and a rise in export prices arisingfrom the weaker yen.
With regard to plastic window sashes, sales volume increased due to businessreconstruction and sales expansion on the back of the recovery in housing starts.
As a result of the above, segment net sales increased 11.9% compared with the previous
fiscal year, to ¥57.0 billion and operating income increased 65.8% to ¥4.8 billion. The
segment reported higher earnings on higher sales.

－11－2. Outlook for fiscal 2014[1] Outlook for operating results
With regard to the world economy, it is feared that the U.S. policy shift from quantitative
monetary easing (QE3) and China’s growth target of mid-7% will be risk factors thatdestabilize not only emerging nations’ economies but the world economy.
On the other hand, with regard to the Japanese economy, in spite of a prospect of
economic recovery boosted by such factors as the government’s economic stimulus
package, an improvement in corporate earnings, an increase in capital expenditures and atrend toward improvement in employment and wages, the growth rate is expected to
decline due to new negative factors such as the deterioration of effects brought bycorrection of the yen appreciation and the consumption tax increase.
Under such situations, the Tokuyama Group will make continuous efforts to implement
its Profit Improvement Plan in fiscal 2014 as well. Through this initiative, the Group will
endeavor to create new businesses, while reinforcing and rebuilding its existing businesses.
Based on the current information, we forecast net sales of ¥303.0 billion, an increase of
5.5% (¥15.6 billion) compared with the fiscal year under review, operating income of¥16.5 billion, a fall of 18.6% (¥3.7 billion), ordinary income of ¥10.0 billion, down 33.2%(¥4.9 billion) and net income of ¥6.5 billion, a decrease of 36.4% (¥3.7 billion).

(Unit: Billions of yen)
Net sales

Operating income

Ordinary income

Net income

Fiscal 2014

303.0

16.5

10.0

6.5

Fiscal 2013

287.3

20.2

14.9

10.2

5.5

(18.6)(33.2)(36.4)

Rate of change (%)

These forecasts are calculated based on an exchange rate of ¥100/$ and a domestic
naphtha price of ¥67,000/kl.

[2] Outlook for segment results for fiscal 2014
Chemicals
The Chemicals segment is anticipated to confront a persistently harsh operating－12－

environment. This is largely attributable to domestic naphtha prices that are likely toremain at high levels. Under these circumstances, we will look to secure earnings
through selling price revisions as well as cost reductions, while we will review thechlorine derivatives portfolio.

Specialty Products
Although the market is on the path of recovery in both semiconductor and solar cell
fields, the polycrystalline silicon business is forecast to confront a persistently harsh
operating environment due to the glut in supply. Under such environments, despite anincrease in depreciation expenses, we will ensure optimal production at Tokuyama
Factory and our plant in Malaysia (Tokuyama Malaysia) in order to minimize
manufacturing costs. At Tokuyama Malaysia, we will start selling solar cell-grade
polycrystalline silicon, while we endeavor to optimize production conditions ofsemiconductor-grade polycrystalline silicon.
With regard to such products as fumed silica and aluminum nitride, we will work tosecure earnings through sales of high-value-added products, cost reductions and othermeasures.

CementPublic- and private-sector demad for cement is anticipated to remain robust. Although
distribution costs are expected to increase due mainly to the reinforcement oftransportation capability, we will work to secure earnings by securing sales volume andmaintaining stable supply.

Life & Amenity
In the domestic market, demand is expected to bottom out owing to economic recovery.
On the other hand, in overseas markets, demand is anticipated to grow mainly inemerging nations. Under such circumstances, we will work to secure earnings by－13－

focusing on developing new products that meet customer needs and expanding sales ingrowing markets.

OthersThe “Others” segment includes businesses which are responsible for the Group’s
overseas sales, logistics and other functions. The segment will work to increase
Group-wide earnings by continuing to reduce costs.

－14－

(2) Analysis of Financial Position
1. Analysis of assets, liabilities and net assets
As of March 31, 2014, total assets amounted to ¥576.3 billion, an increase of ¥58.0
billion compared with those as of March 31, 2013.
This was largely attributable to an increase in property, plant and equipment resulting
mainly from construction of polycrystalline silicon manufacturing facilities in Malaysia. On
the other hand, cash in hand and deposits at bank, which were held to be allotted for thepayment of construction expenses, decreased, while securities (negotiable certificates ofdeposit) increased due to the procurement of funds through a subordinated loan tobolster the Company’s capital position.
Total liabilities amounted to ¥339.8 billion, an increase of ¥45.4 billion compared withthose as of March 31, 2013. This was mainly due to an increase in long-term debt as aresult of the procurement of funds through the subordinated loan.
Net assets totaled ¥236.4 billion, an increase of ¥12.5 billion compared with those as ofMarch 31, 2013. This was chiefly due to an increase in retained earnings and theimprovement of foreign currency translation adjustments arising from the weaker yen.

2. Analysis of cash flows(Unit: Millions of yen)
Fiscal 2012

Fiscal 2013

Cash flows from operating activities

17,071

34,105

Cash flows from investing activities(60,673)(64,402)

Cash flows from financing activities

36,46545,939641

1,485(6,493)

17,127448

414

Cash and cash equivalents at end of year

52,431

69,973[Cash and cash equivalents at end of previous year ][58,476][52,431]

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Increase (decrease) in cash and cash equivalents due to changes of scope of
consolidation

As of March 31, 2014, cash and cash equivalents were ¥69.9 billion, an increase of ¥17.5－15－

billion compared with those as of April 1, 2013.

(Cash flows from operating activities)
Net cash provided by operating activities totaled ¥34.1 billion, an increase of ¥17.0 billion
compared with the previous fiscal year. Principal items included income before income
taxes of ¥12.9 billion and depreciation expenses of ¥16.6 billion.

(Cash flows from investing activities)
Net cash used in investing activities totaled ¥64.4 billion, an increase of ¥3.7 billion
compared with the previous fiscal year. Major contributory factors were payments forpurchases of property, plant and equipment of ¥29.9 billion, including construction ofpolycrystalline silicon manufacturing facilities in Malaysia, and net expenditure for moneyin trust of ¥30.8 billion.

(Cash flows from financing activities)
Net cash provided by financing activities amounted to ¥45.9 billion, an increase of ¥9.4
billion compared with the previous fiscal year. This was primarily attributed to proceeds oflong-term debt of ¥68.8 billion and repayments of long-term debt of ¥22.6 billion.

(3) Basic Policy for Profit Distribution and Dividends for Fiscal 2013 and 2014
Tokuyama maintains the basic policy for profit distribution of providing continuous,
stable dividends to its shareholders while taking into consideration its performance trends
and the medium- and long-term business plans. Meanwhile, the Company will applyinternal reserves to investment and lending as well as capital expenditures with the aim offurther enhancing its corporate value toward 2018, the year which marks its Centennial
anniversary, while establishing a sound financial position taking business risks into account.
In fiscal 2013, we expect to pay out a year-end dividend of ¥3 per share in line with ourbasic policy mentioned above. In the fiscal year under review (fiscal 2013), the Company－16－

already paid an interim dividend of ¥3 per share. Accordingly, the total annual dividend
for fiscal 2013 will become ¥6 per share, an increase of ¥3 year on year.
With regard to fiscal 2014 onward, we plan to pay dividends twice a year based on therecord dates – at the end of the second quarter and at the end of the fiscal year.

－17－2. Management Policy(1) Basic Management Policy
The Tokuyama Group works diligently to increase its corporate value by adhering to astrict code of corporate ethics and ensuring thoroughgoing compliance. At the same time,
the Group has identified the basic management policy of remaining the preferred choiceof customers, while attracting wide-ranging acclaim from all stakeholders including
shareholders, customers, employees, and local communities. To this end, the TokuyamaGroup engages in corporate management that is responsive to society, and makes every
effort to fulfill its corporate social responsibility (CSR). We also acknowledge the criticalimportance of carrying out business activities that take into consideration environmental
concerns. In pursuing environmental management, we recognize that by aggressively
tackling such environmental issues as global warming and helping to solve them, we are
better positioned to promote sustainable growth and development while bolstering ourcompetitive advantage.
In particular, we have positioned our long-standing ties of trust with customers, together
with our comprehensive manufacturing capabilities as the cornerstones of efforts toincrease our corporate value. Fully aware that changes in our business environment offer
the opportunity to create new businesses, we are committed to proactive business
innovation.

(2) Medium- to Long-Term Management Strategies and Performance Targets
February 16, 2008 marked Tokuyama’s 90th anniversary. As we work toward our 100th
anniversary, we have put in place a Centennial Vision that identifies the ideal scenario for
the Group. Under this Vision, we aspire to become a prominent manufacturer that
continues to be responsive to society and help create a better future through the vitality of
its human resources and the creativity of chemistry. We also set several numerical targets
under the Vision including net sales of ¥500 billion or higher, an operating margin of
15% or higher, and an overseas net sales ratio of 30% or higher.
－18－

Against this backdrop and despite commencing the new Three-Year Management Plan,
which is positioned as the second step to achieve our Centennial Vision, in April 2012, thepolycrystalline silicon business, a core earnings pillar, has witnessed a rapid deterioration inmarket conditions. Under these circumstances, the Group incurred impairment losses on
polycrystalline silicon manufacturing facilities as well as the reversal of deferred tax assets.
Accounting for each of these factors, we recorded a consolidated net loss of ¥37.9 billion
for the fiscal year ended March 31, 2013.
In order to break free from this negative spiral and rebuild a profitable platform, we
decided to pull together measures aimed at improving profits including efforts toreconstruct the polycrystalline silicon business, and adopt plans that closely reexamine
targets and initiatives on a constant rolling three-year cycle from April 2013. Extending
well beyond the scope of emergency countermeasures, we will push forward structuralreforms that increase the productivity of not only business departments, but also
back-office and functional divisions and our affiliated companies, and work to improve
our financial condition as a part of efforts to secure enduring profits. While our ideal
Centennial Vision for the Group remains unchanged, we have revised our numericaltargets for net sales and operating margin to ¥358 billion and 7%, respectively.

(3) Pending Issues
Vigorous negotiations between concerned countries in their bid to conclude Trans-PacificStrategic Economic Partnership (TPP) agreements are indicative of the increasing
globalization of economies. In addition to each individual country and region, there aresigns that efforts to promote cooperation by major economic blocs are having asubstantial impact on the economic activities of single nations as well as the world as awhole. Meanwhile, as the world’s second largest economy behind the U.S., there areconcerns that China’s economic growth, which is expected to narrow to around 7.5%, willplace downward pressure on emerging nations and by extension the global economy. On
the domestic front, operating conditions are shrouded in uncertainty due to a variety of－19－risks. In addition to a contracting market that is attributable to the hollowing-out ofindustry and decline in the pool of labor, these risks encompass the increased burden in
addressing environmental concerns, energy issues resulting from the suspension ofoperations at nuclear power stations, and the price spiral that reflects the increase in Japan’s
consumption tax rate as well as corrections to the high value of the yen.
Under these circumstances, the Tokuyama Group will work diligently to address thefollowing issues as it strives to realize its Centennial Vision.

1. Carry Out a Profit Improvement Plan
[1] Reconstruct the polycrystalline silicon businessTokuyama incurred an extraordinary loss of ¥26.6 billion in its polycrystalline siliconbusiness, which exhibited a marked deterioration in profit due to the downturn in market
conditions. This loss was largely due to the impairment of Tokuyama Factory’s
manufacturing facilities for polycrystalline silicon and concurrent fumed silica for the fiscal
year ended March 31, 2013. Meanwhile, the Company also recorded an extraordinary lossof ¥2.4 billion. This represented the write-down of the book value of metallic silicon
procured as a raw material, based on its replacement market price, as of March 31, 2013.
In addition to the accounting treatment of specific items at Tokuyama Factory mentioned
above, particular emphasis will be placed on securing an optimal production balance
between polycrystalline silicon, fumed silica, and silane gas as a part of efforts to maximize
profits.
Turning to the Group’s Tokuyama Malaysia PS-1 Plant, steps have been taken to hasten
the pace of the acquisition of production certification from customers following a shift
from the originally planned production of solar cell-grade polycrystalline silicon tosemiconductor-grade polycrystalline silicon, where specification requirements are higher.
At the Tokuyama Malaysia PS-2 Plant, we will look to begin operations about the middleof this year in tune with the recovery in solar-grade markets. In an effort to reduce cash
costs by 30% or more compared with the initial plan, we will diversify the procurement of－20－

raw materials, further improve productivity, and increase the percentage of local
management staff. While promoting these and other measures, energies will also bechanneled toward strengthening competitiveness.

[2] Improve profit in other businesses
In the Chemicals segment, we launched a liquid hydrogen business in June 2013 while
reconstructing our soda ash and calcium chloride activities. In the Cement segment, we
will take steps to place the waste gypsum board recycling business, which commenced
operations last year, on a firm track, while further developing our cement businessoverseas.
In the Life & Amenity segment, we will accelerate growth by placing the utmost emphasis
on customer-oriented solution proposals and developing products that resolve customers’
problems.
Focusing on research and development themes, we will look to commercialize materials
for fuel cell use and aluminum nitride single crystals.

[3] Improve Companywide profit
Looking ahead, steps will be taken to cut back on recruiting activities as well as new hires
across the Group as a whole, thereby downsizing staff. In addition to streamlining
back-office and functional divisions at the headquarters level in line with the reduction ofbusiness, we will promote optimal staff redeployment both within and outside the Group.
After reviewing personnel and overhead expenses, we will adhere strictly to a policy of
reduction. We will also endeavor to entrench reductions in unit purchasing anddistribution costs.
From an R&D perspective, we will strive to curtail expenses by ensuring the stringent
selection of themes.
We will hold capital expenditure to less than 75% of depreciation expenses, while making
thoroughgoing efforts to control inventories. Through these means, we will focus on－21－

improving cash flows.

2. Bolster International CompetitivenessWe will position Tokuyama Factory at the heart of efforts to bolster international
competitiveness. On this basis, we will pursue innovation of the Factory’s process andengineering technologies, reinforce the logistics function, formulate and enhance along-term vision for the Factory’s infrastructure, and promote the utilization of alternative
fuels that replace coal. In this manner, we will strengthen Tokuyama Factory as a supply
base for technologies, human resources, and systems. Energies will also be channeledtoward reforming the Factory from a dominant manufacturing base to a technologicalbase (hub).
At Tokuyama Malaysia, we will focus on the manufacture of polycrystalline silicon as apart of comprehensive measures aimed at increasing our competitiveness in terms ofcosts. Our goal is to establish Tokuyama Malaysia as a production base that is capable ofmanufacturing products that can excel in global markets and particularly in such growth
regions as Asia. By utilizing the most appropriate local method to manufacture productsthat match the needs of the local market, we will build highly competitive production
bases in China.

3. Establish a Structure that Supports Growth Strategies[1] Reinforce the business execution and supervisory functions
Tokuyama is working diligently to reinforce corporate governance. Among a host of
initiatives, the Company will increase the number of outside directors. We are also taking
steps to ensure that the executive officer system is firmly entrenched within the
Company’s management structure and system. In addition to both separating andboosting the business execution and supervisory functions, we are implementing a new
management structure for faster decision making.

－22－

[2] Strengthen overall functions by incorporating a cross-divisional approach
Moving forward, we will promote Venture Spirit & Innovation Project activities while
endeavoring to reform our corporate culture and strengthen organizational functions. In
addition, with the reorganized Management of Technology Division taking the lead, we
will look to assess and strengthen individual technologies on a Group-wide basis andaccelerate the pace of development theme commercialization.

[3] Introduce measures to address globalization of the Group’s organization,
personnel affairs, and accounting
In order to develop into a globally competitive company, we will overhaul every facet of
our operations including our organization, personnel systems, and accounting
mechanisms and work to globalize our business operations.

[4] Fully utilize the Line of Business (LOB) system
The Tokuyama Group will make every effort to expedite its decision making and improvebusiness efficiency. In specific terms, we will fully utilize the various functions of our LOB
system and promote its use as the standard system across Group companies both in Japanand overseas.

[5] Establish a structure that can fully utilize diverse human resources
The Tokuyama Group is promoting Diversity & Inclusion Management (DIM)* with theaim of enhancing employee motivation and developing a workplace environment thatencourages employees to realize their full potential. These efforts are designed to bolster
the Group’s human resource-based management. Moreover, the Group is engaging in
health management as a part of efforts to nurture the minds and bodies of its employees,
who support dynamic activity.

－23－

* Diversity & Inclusion Management (DIM)
Diversity & Inclusion Management entails efforts to provide a workplace environment inwhich diverse human resources are able to develop and excel irrespective of gender,
nationality or existence of disability. DIM involves the evaluation of human resources
based on their individual levels of contribution toward enhancing corporate value.
Promoting human resource diversity and incorporating DIM into business activities
reflects efforts to increase the vitality and creativity of the organization.

4. Address the Plastic Window Sash Problem
Since we announced the mislabeling of fireproof specifications on plastic window sashes
in January 2009, we have rallied the strength of the entire Group with the aim of regaining
the trust of customers. To this end, we have stepped up prevention measures and efforts
to complete the repair of customers’ houses and other buildings to ensure legal
compliance.

[1] Actions to prevent a recurrence
The Group has completed the formulation and implementation of urgent, short- andmedium-term measures aimed at preventing a recurrence. Energies are now being
channeled to ensure the efficacy of these measures. Moreover, for the purpose of
preventing our employees from forgetting this problem, we made a monument forinternal education and set it within the Company.

[2] Actions to repair customers’ houses and other buildings and ensure legal
compliance
The Group has installed a test furnace at Excel Shanon’s Kuriyama Factory, establishedrepair technologies, and acquired authorization for fireproof and fire-resistantspecifications as a part of wide-ranging efforts to undertake repairs from fiscal 2010 inearnest. As a result, the Group had completed repair and replacement work for 96% of－24－

affected customers by March 31, 2014. Moving forward, we will strive to complete theremaining work, providing detailed repair services tailored to each house or building inneed of repair.

－25－

Segment information
1. Summary of reportable segments
The reportable segments of the Touyama Group are defined as individual units, where separate financial information
is available and which are subject to regular review by the Board of Directors of the Company to evaluate theirresults and decide the allocation of management resources.
The Company has business divisions by product group, and the Tokuyama Group conducts business operations
through each business division devising its comprehensive product strategy for domestic and overseas markets.
The Tokuyama Group is, therefore, composed of segments by product group based on business divisions, and has
four reportable segments, “Chemicals,” “Specialty Products,” “Cement,” and “Life & Amenity.”
Main products and services of each reportable segment are as follows:

Reportable segment
Chemicals

Main products and services
Caustic soda, soda ash, calcium chloride, sodium silicate, vinyl chloride monomer,
polyvinyl chloride resin, propylene oxide, isopropyl alcohol and methylene chloride

Specialty Products

Polycrystalline silicon, fumed silica, aluminum nitride, metal washing solvent, high-purity
chemicals for electronics manufacturing, and environment-related equipment

CementOrdinary Portland cement, high early-strength Portland cement, Portland blast-furnace slag
cement, ready-mixed concrete, cement-type stabilizer and waste treatment

Life & Amenity

Polyolefin film, plastic window sashes, medical diagnosis systems, dental materials andequipment, gas sensors, ion exchange membranes, pharmaceutical ingredients andintermediates, plastic lens-related materials for glasses, and microporous film

From fiscal 2013, the Advanced Components segment was renamed the Life & Amenity segment. We only changed thesegment’s name and therefore the product lines of the said reportable segment have not been changed.
Also, with the aim of implementing more proper management of operating results, the Company changed the accounting
treatment method for “Adjustment” expenses. By this change, the Company has directly imposed expenses clearly related
to specific segments, which had been previously classified as “Adjustment,” on specific segments.
Information on sales, income (loss), assets and other items by reportable segment for fiscal 2012, which have beenrecalculated to reflect the above-mentioned changes, is presented in “Fiscal 2012 (April 1, 2012 – March 31, 2013)” on thenext page.

－26－

2. Information on sales, income (loss), assets and other items by reportable segment
Fiscal 2012 (April 1, 2012 – March 31, 2013)(Millions of yen)
Reportable segments

Sales
Sales to customers
Inter-segment sales/transfer
Total
Segment income
Segment assets
Other items
Depreciation expenses
Increase in tangible and intangible
fixed assets

Chemicals

Specialty
Products

76,384968
77,352426
52,664

44,235
8,608
52,844391
212,008

69,776
184
69,961
5,333
48,797

3,498
2,234

7,176
86,582

2,628
3,013

CementAdjustment*2

Figures in
consolidated
financialstatements*3

258,632
32,691
291,324
11,699384,922(32,691)(32,691)(4,927)
133,328

258,632
258,632
6,772
518,251

16,35896,256

6,741
2,652

23,09998,908Others*1

Total

49,267
1,742
51,0092,932
44,887

18,96821,18740,1562,615
26,563

1,795
3,601

1,260
824

Life &
Amenity*1 “Others” segment comprises businesses other than those of the reportable segments. Concretely, the segment includes
overseas sales companies, a distribution company, a real estate business, etc.
*2 Adjustment is as follows:(1) The segment income adjustment amount consists mainly of basic R&D expenses that are not related to specificreportable segments.
(2) Included in the segment assets adjustment amount are corporate assets that are not allocated to specific reportablesegments (¥150,319 million).
*3 With regard to segment income, operating income in the consolidated financial statements has been calculated byadjusting the sum total of the reportable segments’ income and the “Others” segment’s income.

Fiscal 2013 (April 1, 2013 – March 31, 2014)(Millions of yen)
Reportable segments

Sales
Sales to customers
Inter-segment sales/transfer
Total
Segment income
Segment assets
Other items
Depreciation expenses
Increase in tangible and intangible
fixed assets

Chemicals

Specialty
Products

85,385
1,071
86,4572,235
55,421

41,89010,59352,483
6,090
256,736

78,814
166
78,981
6,682
58,058

2,967
1,142

1,676
53,871

2,776
2,824

CementAdjustment*2

Figures in
consolidated
financialstatements*3

Others*1

Total55,552
1,505
57,057
4,863
51,13325,687
21,59447,281
4,168
28,374

287,330
34,931
322,262
24,041
449,724(34,931)(34,931)(3,770)126,590

287,330
287,330
20,270576,315

2,005
2,309

1,349
1,239

10,774
61,386

5,868
117

16,642
61,503

Life &
Amenity*1 “Others” segment comprises businesses other than those of the reportable segments. Concretely, the segment includes
overseas sales companies, a distribution company, a real estate business, etc.
*2 Adjustment is as follows:(1) The segment income adjustment amount consists mainly of basic R&D expenses that are not related to specificreportable segments.
(2) Included in the segment assets adjustment amount are corporate assets that are not allocated to specific reportablesegments (¥145,249 million).
*3 With regard to segment income, operating income in the consolidated financial statements has been calculated byadjusting the sum total of the reportable segments’ income and the “Others” segment’s income.

－27－

Millions of yen
3/31/2013
3/31/2014

Consolidated quarterly balance sheets
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
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 investment loss
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－28－

44,89765,371
8,310
20,275
13,277
17,110547
16,528(205)
186,11427,60567,49543,05014,131
9,896
17,878
1,068
10,635(138)
191,623

100,129(68,452)
31,676
451,758(401,103)
50,65523,044(21,086)
1,958
32,895
1,482
(685)
796
156,388274,370

102,709(71,685)
31,024
441,874(392,062)
49,812
23,002(21,360)
1,642
32,667
2,156
(895)
1,261
206,692
323,100

175
22
7,757
7,955

3,608
29
6,493
10,131

31,476
4,017
965－
13,710(21)(337)
49,811
332,137
518,251

33,334
3,473
839
7,804
6,264
(21)
(233)
51,460384,692
576,315

Consolidated quarterly balance sheets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Commercial papers
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for repairs
Provision for product warranties
Provision for restructuring
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
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
Minority interests
Total net assets
Total liabilities and net assets－29－

Millions of yen
3/31/2013
3/31/2014

38,152
8,912
4,000
22,144
338
948
1,377
1,949
1,755
94
29
35,923
115,626

40,08912,347
4,000
8,811
376
1,865
1
2,056
1,429
132
13
28,17399,29750,000101,796
514
5,993
969
214
2,687
1,276
156
－
5
15,138
178,753294,380

50,000164,278
953
7,338
－
207
2,747
842
131
1,112
5
12,946
240,565
339,862

53,45857,67099,058(1,414)
208,773

53,45857,670107,155(1,428)
216,856

7,566
2,238
(1,023)
－
8,781
6,316
223,871518,251

8,369
749
2,710
982
12,811
6,785
236,453
576,315

Consolidated quarterly statements of (comprehensive) 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 income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Technical support fee
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Cost of idle operations
Borrowing cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
State subsidy
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on disaster
Loss on reduction of non-current assets
Loss on disposal of non-current assets
Loss on sales of investment securities
Loss on sales of shares of subsidiaries and associates
Cost of compensation for building materials
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income (loss) before minority interests
Minority interests in income
Net income (loss)－30－

Millions of yen
FY2012FY2013
258,632
287,330
191,494
206,989
67,13780,34034,131
26,23460,365
6,772

35,275
24,79460,06920,270

73
496
433
459
135
1,447
3,044

45
552
519
432
373
1,143
3,067

2,364
2,778
－
1,442
6,584
3,232

2,755
2,309
1,916
1,390
8,372
14,965

692
156
184
－
1,033

212
379
3
96
692

485
27,260
9
161
564
－
－
32
3,816
32,330(28,065)
1,850
7,665
9,515
(37,580)336(37,916)

84
374
120
1
1,671
1
78
336
49
2,717
12,939
2,870
(423)
2,446
10,493274
10,218

Consolidated statements of comprehensive income
Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted for using equity
methodTotalother comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests－31－

Millions of yen
FY2012FY2013(37,580)
10,493
3,606
1,727
1,731
271
7,337
(30,243)816(1,488)
3,540
392
3,261
13,754(30,644)400

13,265488

Consolidated statements of cash flows
Cash flows from operating activities
Income (loss) before income taxes and minority interests
Depreciation
Increase(decrease) in allowance for loss on compensation for building materials
Increase (decrease) in other provision
Increase(decrease) in net defined benefit liability
Increase(decrease) 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
Borrowing cost
Loss on reduction of non-current assets
Impairment loss
Loss (gain) on disposal of non-current assets
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
Income taxes paid
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
Purchase of shares of subsidiaries resulting in change in scope of consolidation
Payments of long-term loans receivableCollection of long-term loans receivable
Purchase of money held in trust
Proceeds from cancellation of money held in trust
Proceeds from subsidy income
Other, net
Net cash provided by (used in) investing activities－32－

Millions of yen
FY2012FY2013(28,065)
23,099(1,169)(1,277)
－
－
(569)
148
(207)
(156)
－
(433)
(184)
2,364
－
161
27,260564
4,939(2,080)(534)(3,581)
1,544(2,638)19,184891(2,333)(670)
17,071

12,93916,642
(433)
(260)
118
629
(598)
(78)
(128)
(378)
78
(519)
(3)
2,755
1,800
1
374
1,671
(484)
9,485
(1,619)710(1,290)(3,310)38,100498(2,153)(2,340)34,105(72)
540(33,970)
3,039
(706)
350
－
(416)
326
(25,000)
19
184(4,967)(60,673)(37)
211(29,907)
520
(812)
984
(4,115)(15)
257(34,300)
3,492
3
(682)
(64,402)

Consolidated statements of cash flows
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
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
Increase (decrease) in cash and cash equivalents resulting from change of scope of
consolidation
Cash and cash equivalents at end of period－33－

Millions of yen
FY2012FY2013(56)
50,729(12,530)(1,047)
(283)
(2)
(343)
36,465641(6,493)58,476

2,668
68,829(22,623)(2,080)
(397)
(97)
(359)
45,9391,485
17,12752,431448

414

52,431

69,973