Summary of Consolidated Financial Statements for the First Quarter Fiscal 2023 (JPGAAP)

July 27, 2023
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, 2023 (Apr. 1, 2023 – Jun. 30, 2023)(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 2023
84,886
1.0
5,142
0.7
5,653
(20.5)First Quarter Fiscal 2022
84,01724.5
5,108(31.9)
7,109(10.1)(Note) Comprehensive income: 1st Q FY23: 7,046million yen [24.3%] 1st Q FY22: 5,670 million yen [20.0%]
Profit attributable toowners of parent
Year-on-year(millions of yen)change [%]First Quarter Fiscal 2023
First Quarter Fiscal 2022

4,304
4,482

(4.0)
(9.3)

Total assets

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

Basic earnings per
share

Diluted earnings
per share

(yen)

(yen)

59.82
62.29

-

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

June 30, 2023
March 31, 2023

476,381
478,342(Reference) Shareholders' equity:

1st quarter

Fiscal 2022, ended
Mar 31, 2023
Fiscal 2023, ending
Mar 31, 2024
Fiscal 2023
（Forecast）

48.9
48.0

Jun. 30, 2023: 233,051 million yen

2. Dividends（Period）

244,005
241,602(yen)-

Mar. 31, 2023: 229,450 million yen

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

(yen)

3,239.04
3,189.01

Total

(yen)

(yen)

35.00

-

35.00

70.00

35.00

-

35.00

70.00

-

(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for fiscal 2023 (April 1, 2023 - March 31, 2024)(% indicates the rate of change over the corresponding previous periods respectively)
attributable to Basic earnings
Operating profit Ordinary profit Profit
Net sales
owners of parent
per share

Fiscal 2023

(millions ofyen)

380,000[%]

8.0(millions of
yen)

[%]

30,000 109.2(millions ofyen)(Note) Revision of the latest consolidated performance forecast: No

1[%]

30,000 102.9(millions ofyen)

22,000

[%]

134.9

(yen)

305.77

*Notes(1) Changes in significant subsidiaries during this period: No(2) Application of accounting methods specific to the preparation of the quarterly consolidated
financial statements: Yes(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (4) Notes on
Quarterly Consolidated Financial Statements (Application of accounting methods specific to the preparation of
the quarterly consolidated financial statements)” on page 11 of the Accompanying Materials to this Summaryof Quarterly Consolidated Financial Statement.
(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements
i. Changes in accounting policy by revision of accounting standards:
ii. Changes in accounting policy other than the above:iii. Changes in accounting estimates:
iv. Retrospective restatements:

No
Yes
Yes
No

(Note) For more details, please refer to “2. Quarterly Consolidated Financial Statements and (4) Notes on

Quarterly Consolidated Financial Statements (Changes in accounting policies that are difficult to distinguishfrom changes in accounting estimates)” on page 11 of the Accompanying Materials to this Summary of
Quarterly Consolidated Financial Statement.

(4) Number of shares issued (in common stock)i.

Number of shares issued at end of period(including treasury stock):ii.

Number of treasury stock at end of period:iii. Average number of shares over period:

1st Quarter
Fiscal 2023:
1st Quarter
Fiscal 2023:
1st Quarter
Fiscal 2023:

72,088,327

Fiscal 2022:

72,088,327

137,545

Fiscal 2022:

137,882

71,950,340

1st Quarter
Fiscal 2022:

71,951,164(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures in linewith the Financial Instruments and Exchange Act. At the point of disclosure of this summary of quarterly
consolidated financial statements, the quarterly consolidated financial statements review procedures in line with the
Financial Instruments and Exchange Act are underway.

(Note) Cautions pertaining to appropriate use of performance forecast and other particular items(Cautions related to Forward-looking statement)
The performance forecast and other forward-looking statements contained in this material have been prepared on
the basis of information available at this point and certain assumptions which are judged to be rational, and may
be substantially different from the actual performance because of various factors that may arise from now on.

(Access to supplementary explanations on business results)
The Company also 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. 6…………………

P. 6

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

P. 7(1) Quarterly Consolidated Balance Sheets…………………

P. 7(2) Quarterly Consolidated Statements of Income…………………

P. 9(3) Quarterly Consolidated Statements of Comprehensive Income…………………

P. 10(4) Notes on Quarterly Consolidated Financial Statements…………………

P. 11(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 2023 (April 1, 2023 – June 30, 2023) aresummarized as follows:(Unit: Millions of yen)
Net sales

Operating

Ordinary

profitprofitProfitattributable toowners ofparentFirst Quarter Fiscal 2023

84,886

5,142

5,653

4,304

First Quarter Fiscal 2022

84,017

5,108

7,109

4,482

1.0

0.7

(20.5)(4.0)

Rate of change (%)

Net sales
Consolidated net sales increased 1.0%, or ¥ 868 million compared with the corresponding
period of the previous year, to ¥ 84,886 million, largely reflecting higher sales prices for
cement, chemicals, and other products, as well as robust growth in sales of life science related
products.
Cost of sales
Cost of sales increased 1.8%, or ¥ 1,053 million compared with the corresponding period of
the previous year, to ¥ 60,954 million owing in large part to elevated fuel and raw materials
costs as a result of the impact of inventories.
SG&A expenses
SG&A expenses decreased 1.2%, or ¥ 218 million compared with the corresponding period of
the previous year, to ¥ 18,789 million mainly due to a decline in logistics costs coinciding
with sluggishness in export volumes.
Operating profit
Operating profit increased 0.7%, or ¥ 34 million compared with the corresponding period of
the previous consolidated fiscal year, to ¥ 5,142 million, largely reflecting higher sales prices
for cement, chemicals, and other products, as well as robust growth in sales of life science
related products.

2

Non-operating income/expenses, Ordinary profit
Non-operating income/expenses deteriorated by ¥ 1,489 million compared with thecorresponding period of the previous consolidated fiscal year.
As a result of the above, ordinary profit decreased 20.5 %, or ¥ 1,455 million compared withthe corresponding period of the previous consolidated fiscal year, to ¥ 5,653 million.
Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable toowners of parent
Extraordinary income/losses improved by ¥ 647 million compared with the corresponding
period of the previous consolidated fiscal year.
As a result of the above, profit before income taxes decreased 11.4%, or ¥ 807 million
compared with the corresponding period of the previous consolidated fiscal year, to ¥ 6,263
million.
Profit after deducting income taxes calculated in an appropriate way decreased 5.5%, or ¥ 243
million compared with the corresponding period of the previous consolidated fiscal year, to¥ 4,206 million.
Profit attributable to owners of parent decreased 4.0%, or ¥ 178 million compared with thecorresponding period of the previous consolidated fiscal year, to ¥ 4,304 million.

3

(Operating results by segment)
Effective from the first quarter of the fiscal year under review, the Company has reviewed thename of one of its reportable segments. In specific terms, the Electronic Materials Segment
has been renamed the Electronic & Advanced Materials Segment. This change applies only tothe aforementioned segment name and has no impact on segment information. The following
comparison with the corresponding period of the previous fiscal year reflects this change insegment name.
First Quarter
Fiscal 2023
Operating
Net sales
Profit(loss)First Quarter
Fiscal 2022
Operating
Net sales
Profit(loss)(Unit: Millions of yen)
Rate of change(%)
Net sales

OperatingprofitChemicals

28,6392,093

31,649

4,252

(9.5)

(50.8)

Cement16,487456

14,506

(325)

13.7

-

Electronic &Advanced
Materials

18,352744

20,4791,393(10.4)(46.6)

Life Science

10,170

2,148

8,364

1,380

21.6

55.6

Eco Business

2,744

(337)

2,551

(182)

7.6

-

Others

11,165

1,019

9,690

522

15.2

95.2

Total

87,5596,125

87,242

7,041

0.4(13.0)

Adjustment(2,673)(982)(3,224)(1,932)--

Figures in quarterly
consolidated profit
84,886
5,142
84,0175,108
1.0
statement(Note) Sales and operating profit (loss) in each segment include inter-segment transactions.

0.7

Chemicals
Despite a decrease in sales volume, caustic soda earnings grew owing to successful efforts torevise sales prices in Japan.
Vinyl chloride monomer and vinyl chloride resin earnings declined due to sluggish overseas
market conditions.
Despite lower sales volume, soda ash and calcium chloride earnings increased owing tosuccessful efforts to revise sales prices.
As a result of the above, segment net sales decreased 9.5% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 28,639 million and operating profit
decreased 50.8 % to ¥ 2,093 million. The segment reported lower earnings on lower sales.
4Cement
Cement earnings improved due to domestic shipments remaining in line with thecorresponding period of the previous fiscal year and to successful efforts to revise sales
prices.
As a result of the above, segment net sales increased 13.7% compared with the corresponding
period of the previous year, to ¥ 16,487 million and operating profit amounted to ¥ 456
million (Posted operating loss of ¥ 325 million in the corresponding period of the previousyear).
Electronic & Advanced Materials
Despite a decline in sales volume due to a slowdown in the semiconductor market,
semiconductor-grade polycrystalline silicon results remained in line with the corresponding
period of the previous fiscal year owing to successful efforts to revise sales prices.
IC chemical earnings declined due to lower sales volume as a result of a slowdown in thesemiconductor market.
Despite domestic sales remaining at the same levels as the corresponding period of theprevious fiscal year, fumed silica earnings declined due to weaker sales volume overseas as aresult of a slowdown in the Chinese economy.
Despite lower sales volume due to a slowdown in the semiconductor market, thermal
management material results remained in line with the corresponding period of the previous
fiscal year thanks to successful efforts to revise sales prices.
As a result of the above, segment net sales decreased 10.4% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 18,352 million and operating profit
decreased 46.6% to ¥ 744 million. The segment reported lower earnings on lower sales.
Life Science
Dental materials earnings grew thanks to an increase in shipments to overseas.
API and intermediate earnings increased owing mainly to growth in the sales volume ofgeneric pharmaceuticals.
Plastic lens-related material results remained in line with the corresponding period of theprevious fiscal year. This reflected robust sales volumes of photochromic dye materials foreyeglass lenses.
As a result of the above, segment net sales increased 21.6% compared with the corresponding
period of the previous consolidated fiscal year, to ¥ 10,170 million and operating profit
increased 55.6% to ¥ 2,148 million. The segment reported higher earnings on higher sales.
Eco BusinessIon exchange membrane earnings increased owing to the growth in shipments
5

Plastic window sash earnings decreased due to a decline in housing starts.
As a result of the above, segment net sales increased 7.6% compared with the corresponding
period of the previous year, to ¥ 2,744 million and operating loss amounted to ¥ 337 million(posted operating loss of ¥ 182 million in the corresponding period of the previous year).

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of June 30, 2023, total assets amounted to ¥ 476,381 million, an decrease of ¥ 1,961
million compared with those as of March 31, 2023.
Despite the increase of property, plant and equipment, cash and deposits, merchandise andfinished goods of ¥ 5,133 million, ¥ 5,112 million, ¥ 4,267 million respectively, this decreaseprimarily reflects the decrease of Accounts receivable - trade, raw materials and supplies of¥ 11,674 million, and ¥ 4,927 million respectively.
Total liabilities amounted to ¥ 232,375 million, an decrease of ¥ 4,363 million compared withthose as of March 31, 2023.
Despite the increase of Long-term borrowings and current portion of long-term borrowings of¥ 1,433 million, this decrease primarily reflects the decrease of notes and accounts payable trade, provision for bonuses of ¥ 4,431 million, and ¥ 1,315 million respectively.
Net assets totaled ¥ 244,005 million, an increase of ¥2,402 million compared with those as ofMarch 31, 2023.
This mainly reflected the increase of ¥ 1,663 million in retained earnings primarily due toposting profit attributable, and the increase of ¥ 1,595 million in foreign currency translation
adjustment.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Notwithstanding anxieties toward semiconductor market conditions, and other factors,
Tokuyama’s business performance is currently trending within anticipated parameters.
Therefore, the Company has not revised the performance forecasts, announced on April 28,
2023. Details will be disclosed in a timely manner should the need to revise performance
forecasts.
The performance forecast has been prepared on the basis of information available at this pointand certain assumptions which are judged to be rational, and may be substantially different
from the actual performance because of various factors that may arise from now on.

6

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
6/30/2023

3/31/2023
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

7

68,0808,672
83,38811
24,111
19,90237,31012,282(71)
253,689

73,192
8,177
71,714
11
28,37819,22932,382
13,340(70)
246,356

116,841(80,555)
36,285
487,746(430,082)
57,66324,395(21,125)
3,269
33,033
9,788(4,124)
5,664
19,419155,336

116,820(80,451)
36,368
485,639(428,480)
57,15825,142(21,420)
3,721
33,117
10,113(4,307)
5,806
24,296
160,469

349
17
3,098
3,465

313
30
3,114
3,458

29,4992,185
19,416
10,023
4,777
(7)
(44)
65,850224,653478,342

30,002
2,115
19,501
9,895
4,636
(7)
(48)
66,096230,024
476,3813/31/2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
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 loss on disaster
Provision for contract loss
Asset retirement obligations
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

8(Millions of yen)
6/30/2023

49,822
2,491
1,407
1,196
1,231
2,768
3,922
519
72
129
5
15
469
63
24,12988,24445,390
3,104
1,585
1,212
1,164
1,452
4,238
849
43
20
3
－
203
63
23,05682,38915,000118,333
4,019
228
197
37
1,513
631
48
90
2,113
11
6,269
148,495
236,739

15,000
119,588
4,134
243
164
50
1,993
301
37
81
2,104
13
6,272
149,986
232,375

10,00023,443
184,852(414)
217,880

10,00022,959186,515(413)
219,062

4,053
(3)
5,630
1,889
11,56912,151
241,602478,342

4,993
(1)
7,225
1,771
13,98910,953244,005
476,381(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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Comprehensive welfare group term insurance expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Subsidy income
Gain on forgiveness of debts
Gain on insurance claims
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment losses
Loss on disaster
Loss on tax purpose reduction entry of non-current assets
Loss on disposal of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

9

Q1 FY2022 YTD
84,01759,90024,116(Millions of yen)
Q1 FY2023 YTD
84,886
60,95423,931

11,981
7,026
19,0085,108

11,322
7,466
18,789
5,142

16
356
583
1,210
1,316
3,484

46
336
262
401
829
1,877

357
183
941
1,483
7,109

420
192
752
1,366
5,653

35
－
40
19
1
97

3
609
47
－
－
660

－
8
3
26
97
135
7,070
2,620
4,450
(31)
4,482

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

(3) Quarterly Consolidated Statements of Comprehensive Income
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

10

Q1 FY2022 YTD
4,450(Millions of yen)
Q1 FY2023 YTD
4,206

(869)
3
2,040
(57)

940
1
2,080
(117)

102

(65)

1,220
5,670

2,839
7,046

5,526
144

6,735
310

(4) Notes on Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Major Changes in Shareholders’ Equity)
Not applicable.
(Changes in significant subsidiaries during this period)
Not applicable.
(Application of accounting methods specific to the preparation of the quarterly
consolidated financial statements)(Calculation of Tax Expense)
The Company rationally estimated the effective tax rate after the application of accounting
policy for deferred tax, which was applied to the profit/loss before income tax for the
consolidated fiscal year under review including the first quarter consolidated accounting
period for the consolidated fiscal year ending March 31, 2023, and calculated the tax expense
by multiplying the estimated effective tax rate to the profit/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.

(Changes in accounting policies that are difficult to distinguish from changes inaccounting estimates)(Changes in the depreciation method for Property, plant and equipment)
Tokuyama and the vast majority of its consolidated subsidiaries in Japan have to date largely
adopted the declining balance method when depreciating property, plant and equipment.
Effective from the first quarter of the fiscal year under review, the Company has changed its
accounting policy for depreciation, adopting the straight-line method. In light of the increased
monetary significance of depreciation expenses attributable to the capital investment
undertaken under Medium-Term Management Plan 2025, Tokuyama reexamined the method
it had previously adopted when depreciating property, plant and equipment. As far as thecapital investment undertaken to minimize the environmental impact of its operations while
ensuring the long-term, stable use of existing equipment and facilities, including investments
in improving processes, promoting efficient energy consumption, and renewing facilities, andto build the supply system necessary to expand vigorously into domestic and overseas
11markets in growing businesses are concerned, the Company has determined that the equal
allocation of acquisition costs over the useful life of each asset using the straight-line method
will more accurately reflect the actual status of operations.
As far as the first quarter of the fiscal year under review is concerned, operating profit
increased ¥543 million, and both ordinary profit and profit before income taxes climbed ¥550
million compared with the corresponding amounts based on the previous depreciation method.
In addition, segment operating profit for Chemicals, Cement, Electronic & Advanced
Materials, Life Science, Eco Business, and Others increased 147 million, ¥165 million, ¥78
million, ¥27 million, ¥49 million, and ¥47 million, respectively, in the first quarter of the
fiscal year under review.

12