Summary of Consolidated Financial Statements for the First Quarter Fiscal 2024 (JPGAAP)
July 26, 2024
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL https://www.tokuyama.co.jp/eng/)
Local Code :4043
Representative:
Hiroshi Yokota, President and Representative Director
Contact:
Tetsuya Nakano, 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, 2024 (Apr. 1, 2024 – Jun. 30. 2024)(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 2024
82,524
(2.8)
7,502
45.9
8,424
First Quarter Fiscal 2023
84,886
1.0
5,142
0.7
5,653
(Note) Comprehensive income: 1st Q FY24: 9,601 million yen [36.3%] 1st Q FY23: 7,046 million yen [24.3%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]First Quarter Fiscal 2024
First Quarter Fiscal 2023

49.0
(20.5)

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

102.89
59.82

-

7,402
4,304

72.0
(4.0)

Total assets

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

Shareholders’Equity ratio(%)

480,262457,360

267,818
259,94853.0
54.5(2) Consolidated financial position

June 30, 2024
March 31, 2024
(Reference)

Shareholders' equity:

Jun. 30, 2024:

254,631 million yen

Net assets per share(yen)

3,539.22
3,464.47

Mar. 31, 2024:

249,256 million yen

2. Dividends
Annual dividends per share
2nd quarter 3rd quarter
Year-end

1st quarter（Period）
Fiscal 2023, ended
Mar 31, 2024
Fiscal 2024, ending
Mar 31, 2025
Fiscal 2024
（Forecast）

(yen)

(yen)

-

(yen)

Total

(yen)

(yen)

35.00

-

45.00

80.00

50.00

-

50.00

100.00-(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for fiscal 2024 (April 1, 2024 - March 31, 2025)
Net sales
Fiscal 2024

(millions ofyen)

352,000(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Operating profit Ordinary profit Profit
owners of parent
per share[%]

2.9(millions ofyen)

33,000[%]28.7(millions ofyen)(Note) Revision of the latest consolidated performance forecast: No

1

31,000[%]17.9(millions ofyen)

25,000

[%]

40.8

(yen)

347.48

*Notes(1) Significant changes in the scope of consolidation during this period: Yes(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (4) Notes on
Quarterly Consolidated Financial Statements (Significant changes in the scope of consolidation during thisperiod)” on page 14 of the Accompanying Materials to this Summary of Quarterly Consolidated Financial
Statement.

(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(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:(4) Number of shares issued (in common stock)
Number of shares issued at end of period
1st Quarteri.
(including treasury stock):
Fiscal 2024:
1st Quarterii. Number of treasury stock at end of period:
Fiscal 2024:
1st Quarteriii. Average number of shares over period:
Fiscal 2024:

Yes
No
No
No

72,088,327

Fiscal 2023:

72,088,327

142,691

Fiscal 2023:

141,799

71,945,819

1st Quarter
Fiscal 2023:

71,950,340

Review of the accompanying quarterly consolidated financial statements by certified public accountants
or audit corporation: No(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 thebasis of information available at this point and certain assumptions which are judged to be rational, and may besubstantially 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 provides 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. 7(3) Explanation concerning capital resources and funding liquidity…………………

P. 8(4) Research and Development (R&D) activities…………………

P. 9…………………

P. 9

2. Quarterly Consolidated Financial Statements…………………

P. 10(1) Quarterly Consolidated Balance Sheets…………………

P. 10(2) Quarterly Consolidated Statements of Income…………………

P. 12(3) Quarterly Consolidated Statements of Comprehensive Income…………………

P. 13(4) Notes on Quarterly Consolidated Financial Statements…………………

P. 14(5) 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 2024 (April 1, 2024 – June 30, 2024) aresummarized as follows:(Unit: Millions of yen)
OperatingprofitNet sales

Ordinary profit

Profitattributable toowners ofparentFirst Quarter Fiscal 2024

82,524

7,502

8,424

7,402

First Quarter Fiscal 2023

84,886

5,142

5,653

4,304

(2.8)

45.9

49.0

72.0

Rate of change (%)

Net sales
Consolidated net sales decreased 2.8%, or ¥ 2,361 million compared with the corresponding
period of the previous year, to ¥ 82,524 million. Despite such factors as an increase in caustic
soda export volumes, this decline was mainly due to semiconductor-related product sales fallingshort of a fully-fledged recovery and the exclusion of Excel Shanon Corporation from theCompany's scope of consolidation effective from the second quarter of the previous fiscal year.
Cost of sales
Cost of sales decreased 8.7%, or ¥ 5,284 million compared with the corresponding period of theprevious year, to ¥ 55,669 million. This was mainly due to progress in manufacturing cost
improvements.
SG&A expenses
SG&A expenses increased 3.0%, or ¥ 563 million compared with the corresponding period of
the previous year, to ¥ 19,353 million mainly due to the increase in R&D expenses.
Operating profit
Operating profit increased 45.9%, or ¥ 2,359 million compared with the corresponding period of
the previous consolidated fiscal year, to ¥ 7,502 million. Despite sales of semiconductor-related
products falling short of a fully-fledged recovery, this upswing was primarily due to growth incaustic soda export volumes and progress in manufacturing cost improvements.

2

Non-operating income/expenses, Ordinary profit
Non-operating income/expenses improved by ¥ 411 million compared with the corresponding
period of the previous fiscal year.
As a result of the above, ordinary profit increased 49.0 %, or ¥ 2,770 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 8,424 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved ¥2,606 million compared with the corresponding periodof the previous fiscal year owing to a variety of factors, including an increase in gain on sale ofinvestment securities in conjunction with a reduction in cross-shareholdings, and the posting of again on share exchange of affiliated companies with efforts to restructure of the polyolefin film
business.
As a result of the above, profit before income taxes increased 85.8%, or ¥ 5,377 million
compared with the corresponding period of the previous consolidated fiscal year, to ¥ 11,640
million.
Profit after deducting income taxes calculated in an appropriate way increased 72.9%, or ¥ 3,067
million compared with the corresponding period of the previous consolidated fiscal year, to¥ 7,273 million.
Profit attributable to owners of parent increased 72.0%, or ¥ 3,098 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 7,402 million.

3

(Operating results by segment)
Tokuyama changed the management categorizations of a certain subsidiary effective from thefirst quarter of the fiscal year under review. Data for the corresponding period of the previous
fiscal year has been adjusted to reflect this change to enable the year-on-year comparisonpresented as follows.
First Quarter
Fiscal 2024
Operating
Net sales
Profit(loss)First Quarter
Fiscal 2023
Operating
Net sales
Profit(loss)(Unit: Millions of yen)
Rate of change(%)
Net sales

OperatingprofitChemicals

30,5382,772

28,639

2,093

6.6

32.4

Cement16,366

1,782

16,487

456

(0.7)

290.4

Electronic &Advanced Materials

17,8681,940

18,352

744

(2.6)

160.7

Life Science

10,062

2,074

10,160

2,180

(1.0)

(4.8)

Eco Business

867

(159)

2,744

(337)

(68.4)-

Others

9,233

1,208

11,174987(17.4)

22.4

Total

84,936

9,620

87,559

6,125

(3.0)

57.1

Adjustment(2,412)(2,117)(2,673)

(982)

-

-

Figures in quarterly
consolidated profit
82,524
7,502
5,142
(2.8)
84,886statement(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

45.9

Chemicals
Although domestic sales volumes remained in line with the corresponding period of the previous
fiscal year, caustic soda earnings grew due to a variety of factors, including an increase in export
volumes.
Despite growth in vinyl chloride monomer export volumes, vinyl chloride monomer and vinyl
chloride resin results remained in line with the corresponding period of the previous fiscal year
due mainly to an increase in manufacturing costs.
Earnings of soda ash decreased owing to lower sales volumes.
As a result of the above, segment net sales increased 6.6% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 30,538 million and operating profit increased
32.4 % to ¥ 2,772 million. The segment reported higher earnings on higher sales.

4Cement
Despite a slight decrease in sales volume year-on-year in Japan, cement earnings grew owing to
improvement of manufacturing costs.
As a result of the above, segment net sales decreased 0.7% compared with the corresponding
period of the previous year, to ¥ 16,366 million and operating profit increased 290.4% to ¥ 1,782
million. The segment reported higher earnings on lower sales.
Electronic & Advanced Materials
Despite sluggish sales volumes due to a weak semiconductor market, semiconductor-grade
polycrystalline silicone earnings grew thanks to a difference in the price mix and the posting of areversal of loss on valuation of inventories.
IC chemical earnings improved. This mainly reflected the increase in operating rates at Formosa
Tokuyama Advanced Chemicals Co., Ltd. In Taiwan.
Despite weak sales volumes owing largely to prolonged sluggishness in the semiconductor market
and economic conditions in China, fumed silica earnings increased due mainly to the impact offoreign currency exchange rates as a result of the weak yen and reductions in manufacturingcosts.
Thermal management material earnings declined owing mainly to sluggish shipments forsemiconductor manufacturing equipment.
As a result of the above, segment net sales decreased 2.6% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 17,868 million and operating profit increased
160.7% to ¥ 1,940 million. The segment reported higher earnings on lower sales.
Life Science
Dental materials earnings grew thanks to an increase in shipments to overseas.
Earnings of medical diagnostic systems decreased. This largely reflected a decline in sales
volumes of laboratory information systems and laboratory automation systems.
API and intermediate earnings declined due to a decrease in the sales volume of genericpharmaceutical.
As a result of the above, segment net sales decreased 1.0% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 10,062 million and operating profit
decreased 4.8% to ¥ 2,074 million. The segment reported lower earnings on lower sales.

5Eco BusinessIon exchange membrane earnings decreased owing to the decline in shipments.
In waste gypsum board recycling, earnings were all in line with the corresponding period of theprevious year, as a result of steady acceptance of waste gypsum board.
In plastic window sashes, Excel Shanon Corporation was removed from the Company’s scope of
consolidation effective from the previous second quarter of the fiscal year under review. This
reflected the transfer of a portion of the company’s shares.
As a result of the above, segment net sales decreased 68.4% compared with the corresponding
period of the previous year, to ¥ 867 million and operating loss amounted to ¥ 159 million(posted operating loss of ¥ 337 million in the corresponding period of the previous year).

6(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
Summary of Consolidated Balance Sheets(Unit: Millions of yen)
Mar 31, 2024

Jun 30, 2024

Amount ofRate ofchangechange (%)

Assets457,360

480,262

22,902

5.0

Liabilities

197,411

212,443

15,032

7.6（Interest-bearing debt）

105,784

121,116

15,332

14.5

Net assets

259,948

267,818

7,869

3.0

（Shareholders' equity）

249,256

254,631

5,374

2.2

AssetsTotal assets amounted to ¥ 480,262 million, an increase of ¥ 22,902 million compared with those
as of March 31, 2024.
Despite the decrease of Accounts receivable – trade of ¥ 9,507 million, this increase primarilyreflects the increase of Cash and deposits, property, plant and equipment, investment securities,
merchandise and finished goods, and raw materials and supplies of ¥ 25,863 million, ¥ 1,932
million, ¥ 1,712 million, ￥1,274 million, and ¥1,240 million respectively

Liabilities
Total liabilities amounted to ¥ 212,443 million, up ¥ 15,032 million compared with those as ofMarch 31, 2024.
Despite the decrease of commercial papers of ¥ 5,000 million, this increase primarily reflects theincrease of bonds payable of ¥ 20,000 million.
Net assets
Net assets totaled ¥ 267,818 million, an increase of ¥ 7,869 million compared with those as ofMarch 31, 2024.
Retained earnings increased ¥ 4,152 million as a result of posting profit attributable to owners ofparent mainly, and non-controlling interests and valuation difference on available-for-salesecurities increased ¥ 2,495 million and ¥ 1,348 million respectively.

7

(Analysis of financial indicators for the quarter under review)
Tokuyama Group has set the following targets for the final year of its Medium-Term
Management Plan 2025.
KPI

FY2025 Target

Net Sales¥ 400.0 billion

Operating Profit¥ 45.0 Billion

Growth Business Net Sales Growth Rate (CAGR)

Over 10%

ROE

Over 11%

These forward-looking statements are based on expectations and certain assumptions at the time
this report was prepared and accordingly do not represent a guarantee of achievement or future
performance. Meanwhile, plans are in place to report of the progress of financial indicators as ofthe end of the consolidated fiscal year.

(3) Explanation concerning capital resources and funding liquidity(Analysis of capital resources)
The Tokuyama Group recognizes the need to retain a certain level of funds in order to secure theworking capital required to finance its business activities, for priority investments in growth fields
for the purpose of transforming its business portfolio and capital investments for the purpose ofcontributing to the mitigation of global warming, such as rationalization, energy saving, andmeasures to reduce GHG emissions, as well as to promote strategic investments. While theprincipal method of procuring these funds is to accumulate cash on hand through the continuous
posting of business earnings, the Group will also pursue other avenues. These include borrowing
from financial institutions and the issuing of unsecured bonds. Furthermore, the TokuyamaGroup’s intended capital investment amount for the fiscal year under review is ¥ 32,390 million.
Plans are in place to utilize cash on hand, borrowings from financial institutions, and the issuanceof unsecured bonds.
(Analysis of funding liquidity)
Cash and cash equivalents stood at ¥ 73,825 million as of June 30, 2024. On this basis, theTokuyama Group is confident that it maintains more than ample liquidity to promote its businessactivities. In addition, Tokuyama has executed revolving credit facility, overdraft, and credit
liquidation agreements with a financial institution. Accounting for these factors, the Company ismore than capable of maintaining a certain level of liquidity should any impediment arise. To
secure liquidity funds in preparation for unforeseen circumstances, we will also set up
commitment lines on an as needed basis.

8(4) Research and Development (R&D) activities
Total R&D expenses for the first quarter of the fiscal year under review amounted to ¥ 3,951
million.

(5) Explanation concerning information related to future prediction such as
consolidated performance forecast
Notwithstanding anxieties toward the future of fuel and raw material prices, foreign currency
exchange rates, semiconductor market conditions, and other factors, Tokuyama’s businessperformance is currently trending within anticipated parameters. Therefore, the Company has notrevised the performance forecasts, announced on April 26, 2024. Details will be disclosed in atimely 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.

9

2. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
6/30/2024

3/31/2024
AssetsCurrent assets
Cash and deposits
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 investment loss
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10

48,684
9,850
77,27911
28,522
18,42824,938
10,159(99)
217,776

74,547
10,18067,771
11
29,797
18,35826,17910,187(93)
236,939

119,122(80,870)
38,252496,906(434,655)
62,251
24,729(20,673)
4,056
33,117
11,038(4,463)
6,575
24,503
168,755

122,624(81,868)
40,755500,462(438,877)
61,58424,929(20,909)
4,020
33,157
11,564(4,765)
6,799
24,370170,688

252
20
3,190
3,463

231
18
3,384
3,635

36,196
2,046
14,834
9,816
4,522
(7)
(44)
67,365239,583
457,360

37,9082,037
14,973
9,682
4,450
(7)
(45)
68,999243,322480,2623/31/2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Commercial papers
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
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 contract loss
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for retirement benefits for directors (and other officers)
Provision for share awards
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

11(Millions of yen)
6/30/2024

48,093
4,234
15,000
2,225
1,247
3,195
3,241
4,656
186
77
202
14
499
21,061103,935

49,482
4,434
10,000
2,050
1,247
4,691
1,612
4,670
186
54
275
14
258
19,01897,997

15,00063,262
4,814
251
135
53
1,671
224
13
67
1,741
19
6,220
93,475
197,41135,00063,502
4,881
198
144
70
2,147
238
9
67
1,742
205
6,239
114,446
212,443

10,00022,947
197,418(422)
229,944

10,00022,777
201,571(424)
233,924

9,221
(0)
8,446
1,645
19,312
10,691
259,948457,360

9,376
－
9,794
1,536
20,707
13,187
267,818
480,262(2) 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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cost of idle operations
Comprehensive welfare group term insurance expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on share exchange of affiliated companies
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Loss on disaster
Loss on disposal of non-current assets
Provision for loss on compensation for damage
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

12

Q1 FY2023 YTD
84,886
60,95423,931(Millions of yen)
Q1 FY2024 YTD
82,52455,66926,855

11,322
7,466
18,7895,142

11,181
8,171
19,353
7,502

46
336
262
401
829
1,877

55
342
286
744
973
2,403

420
77
192
675
1,366
5,653

221
202
197
859
1,480
8,424

3
609
－
47
660

4
1,130
2,313
1
3,449

1
－
2
45
－
50
6,263
2,056
4,206
(97)
4,304

－
96
－
64
72
234
11,640
4,366
7,273
(128)
7,402

(3) 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

13

Q1 FY2023 YTD
4,206(Millions of yen)
Q1 FY2024 YTD
7,273

940
1
2,080
(117)

155
0
2,176
(99)

(65)

94

2,839
7,046

2,327
9,601

6,735
310

9,374
227

(4) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Major Changes in Shareholders’ Equity)
Not applicable.
(Significant changes in the scope of consolidation during this period)
Effective from the first quarter of the fiscal year under review, Shin Dai-ichi Vinyl Corporation,
which was a consolidated subsidiary until the previous consolidated fiscal year, was excluded
from the Company’s scope of consolidation following its dissolution in an absorption-typemerger with Tokuyama remaining as the surviving company.
(Consolidated Balance Sheets)
Long-term power purchase contracts
As of March 31, 2024
The Company has entered into a long-term purchase contract with a power generation company
for the receipt of electricity. Such contract is noncancelable before maturity, and losses may be
incurred depending on future market conditions and other factors.

As of June 30, 2024
The Company has entered into a long-term purchase contract with a power generation company
for the receipt of electricity. Such contract is noncancelable before maturity, and losses may be
incurred depending on future market conditions and other factors.
(Notes on Statements of Cash Flows)
Quarterly consolidated statements of cash flows have not been prepared for the first quarter ofthe fiscal year under review. Meanwhile, depreciation (including amortization of intangible assets
excluding goodwill) and amortization of goodwill for the first quarter of the fiscal year underreview are as follows.
First Quarter Fiscal 2023
Depreciation
Amortization of goodwill

4,216 million yen
20

14First Quarter Fiscal 2024
4,760 million yen
20