Summary of Consolidated Financial Statements for the Third Quarter Fiscal 2013 (JPGAAP)
January 31, 2014
Tokuyama Corporation
Stock exchange listings:
Tokyo(URL http://www.tokuyama.co.jp/)
Local Code :4043
Representative:
Kazuhisa Kogo, President and Representative Director
Contact:
Takeshi Nakahara, Executive Officer, General Manager of Corporate Planning Div.,
Corporate Communications & Investor Relations Dept.
+81-3-6205-4832
Scheduled date for the filing of the quarterly consolidated financial statements : February 14, 2014
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 third quarter ended Dec. 31, 2013 (Apr. 1, 2013 – Dec. 31, 2013)(1) Performance

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

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

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

Third Quarter Fiscal 2013
207,920
10.0
12,508353.6
9,835
Third Quarter Fiscal 2012
189,058(10.4)
2,757(74.0)(109)(Note) Comprehensive income: 3rd Q FY13: 10,850 million yen [-%] 3rd Q FY12: (8,376) million yen [-%]Net income

Third Quarter Fiscal 2013
Third Quarter Fiscal 2012-

Net income per
share

Diluted net income
per share(millions of yen)

Year-on-yearchange [%]

(yen)

(yen)

7,491
(10,842)-

21.53(31.16)-

Total assets

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

Shareholders’Equity ratio(%)

Net assets per
share
(yen)

(2) Consolidated financial position

Dec. 31, 2013
Mar. 31, 2013

532,325
232,691
518,251
223,871
Dec. 31, 2013: 226,269 million yen(Reference) Shareholders' equity:

42.5
650.3942.0
625.29Mar. 31, 2013: 217,554 million yen

2. Dividends
1st quarter（Period）
Fiscal 2012, ended
Mar 31, 2013
Fiscal 2013, ending
Mar 31, 2014
Fiscal 2013
（Forecast）

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

(yen)

(yen)

(yen)

-

-

-

-

3.00

-

Total

(yen)

(yen)

3.00

3.00

3.00

6.00

(Note) Revision of the latest dividends forecast: No

3. Consolidated performance forecast for fiscal 2013 (April 1, 2013 - March 31, 2014)(% indicates the rate of change over the corresponding previous period)

Net sales(millionsofyen)Operating income Ordinary income[%](millions

of
yen)

[%]

(millions

of
yen)

[%]

Net income pershare

Net income(millions

of
yen)

[%]

(yen)

Fiscal 2013
286,000 10.6
18,000 165.8
14,000333.1
10,00028.74(Note) Revision of the latest consolidated performance forecast: Yes*The Company announced the news release, “Notice concerning Revision of Performance Forecast,” onJanuary 31, 2014.
－1－

*Notes(1) Changes in significant subsidiaries during this period (Apr. 1, 2013 – Dec. 31, 2013): No
Addition to the scope of consolidation: Reduction from the scope of consolidation: (Note) This item means changes in significant subsidiaries with changes in the scope of consolidation
during this period (Apr. 1, 2013 – Dec. 31, 2013).
(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 of accounting policies by revision of accounting standards: No
ii. Changes of accounting policies other than the above:Noiii. Changes in accounting estimates:No
No
iv. Retrospective restatements:(4) Number of shares issued (in common stock)
Number of shares issued at end of period Third Quarteri.
Fiscal 2013:(including treasury stock):ii.

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

Third Quarter

Fiscal 2013:
Third Quarter

Fiscal 2013:

349,671,876

Fiscal 2012:

349,671,876

1,773,018

Fiscal 2012:

1,742,749

347,914,599

Third Quarter

Fiscal 2012:

347,939,642(Note) Notice on the implementation of quarterly review proceduresThis summary of quarterly consolidated financial statements is not subject to quarterly review procedures inline with 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 linewith the Financial Instruments and Exchange Act are underway.

(Note) Cautions pertaining to appropriate use of performance forecast 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 be substantially different from the actual performance because of various factors that
may arise from now on.

－2－

1. Qualitative information on consolidated quarterly results(1) Explanation concerning business results
Consolidated results for the third quarter fiscal 2013 (accumulated figures, April 1,2013 - December 31, 2013) are summarized as follows:(Unit: Billions of yen)
Net sales

Operating income

Ordinary income

Net income (loss)(loss)
Third Quarter Fiscal 2013

207.9

12.5

9.8

7.4

Third Quarter Fiscal 2012

189.0

2.7

(0.1)

(10.8)

Rate of change (%)

10.0

353.6

-

-

Net sales
Despite such negative factors as decreased sales volume of polycrystalline silicon,
consolidated net sales increased 10.0%, or ¥18.8 billion compared with thecorresponding period of the previous year, to ¥207.9 billion. In addition toincreased sales volume of cement and related products, this was largely attributable
to selling price revisions of petrochemicals and an increase in sales volume, which
was due to the fact that difficulties at our vinyl chloride monomer (VCM) plant
were resolved.
Cost of sales
Despite decreased sales volume ofpolycrystalline silicon, Companywide

thoroughgoing cutbacks in costs and other factors, cost of sales increased 7.2%, or¥10.1 billion compared with the corresponding period of the previous year, to¥151.2 billion, due chiefly to increased sales volume of VCM and cement anddomestic naphtha price hikes.
SG&A expenses
SG&A expenses decreased 2.3%, or ¥1.0 billion compared with the corresponding
period of the previous year, to ¥44.1 billion, due mainly to lower distribution costs
as a result of decreased sales volume of polycrystalline silicon and Companywide－3－

thoroughgoing cutbacks in costs.
Operating income
Operating income increased 353.6%, or ¥9.7 billion compared with thecorresponding period of the previous year, to ¥12.5 billion, due chiefly toCompanywide thoroughgoing cutbacks in costs.
Non-operating income/expenses, Ordinary income/loss
Despite an increase in interest expenses and costs of idle operations, non-operating
income/expenses improved by ¥0.1 billion compared with the corresponding
period of the previous year, due chiefly to a change from foreign exchange losses
recorded in the corresponding period of the previous year to foreign exchange
gains. As a result, ordinary income/loss improved by ¥9.9 billion compared withthe corresponding period of the previous year, to ordinary income of ¥9.8 billion.
Extraordinary gains/losses, Income/loss before income taxes, Income/loss
before minority interests, Net income/loss
Extraordinary gains/losses improved by ¥1.1 billion compared with thecorresponding period of the previous year, mainly because the Company did notrecord the provision for business restructuring charges relating to Excel Shanon
Corporation in the period under review, which was recorded in the corresponding
period of the previous year.
As a result of the above, income/loss before income taxes improved by ¥11.0
billion compared with the corresponding period of the previous year, to income of¥9.3 billion.
Income/loss before minority interests improved by ¥17.9 billion from thecorresponding period of the previous year, to income of ¥7.3 billion, mainly
because the Company did not post a reversal of deferred tax assets in the period
under review, which was posted in the corresponding period of the previous year.
After deducting minority interests, the Company recorded net income of ¥7.4
－4－

billion. Net income/loss improved by ¥18.3 billion from the corresponding periodof the previous year.

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

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

40,58235,782

233,770(25,850)

207,920

52,94736,766

29,793

213,664(24,606)

189,058

9.8

10.4

20.1

9.4

-

10.0

Reportable segment

Third Quarter
Fiscal 2013
Third Quarter
Fiscal 2012
Rate of change (%)

Chemicals

Specialty
Products

Cement64,01635,241

58,14757,562

36,594

11.2

(3.7)

Life &
Amenity

Operating income (loss)(Unit: Millions of yen)

Others

Total

Adjustment

Figures inquarterly
consolidated
incomestatement

3,083

3,439

15,005(2,497)

12,508

3,993

1,758

1,871

6,733

(3,976)

2,757

19.5

75.4

83.8

122.8

-

353.6

Reportable segment

Third Quarter
Fiscal 2013
Third Quarter
Fiscal 2012
Rate of change (%)

Chemicals

Specialty
Products

Cement

1,398

2,310

4,773

358

(1,247)290.3-Life &
Amenity(Note 1) Sales and operating income (loss) shown above include inter-segment transactions.
(Note 2) From the first quarter fiscal 2013, the Advanced Components segment was renamed the Life &Amenity segment. We only changed 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
the accounting treatment method for expenses that were classified as “Adjustment.” By this change, theCompany has directly imposed expenses clearly related to specific segments, which had been previouslyclassified as “Adjustment,” on specific segments.
Sales and operating income (loss) for the third quarter fiscal 2012 have been recalculated to reflect theabove-mentioned changes.

ChemicalsWith regard to vinyl chloride monomer (VCM), sales increased compared withthe corresponding period of the previous year. In addition to the fact thatdifficulties at our VCM plant, which occurred in the corresponding period of the－5－previous year, were resolved, this was attributable to a rise in export prices
resulting from the weaker yen.
With regard to caustic soda, the facility utilization rate of the electrolysis plantrose, as the above-mentioned difficulties at the VCM plant were resolved. Due tothis factor, domestic sales volume recovered.
With regard to polyvinyl chloride (PVC), we worked to revise selling prices toabsorb a rise in the price of domestic naphtha.
As a result of the above, segment net sales increased 11.2% compared with thecorresponding period of the previous year, to ¥64.0 billion and operating
income increased 290.3% to ¥1.3 billion. The segment reported higher earnings
on higher sales.

Specialty Products
With regard to polycrystalline silicon, although the semiconductor-grade market
was on the path of recovery, sales volume of semiconductor-grade
polycrystalline silicon decreased. This was largely attributable to inventory
adjustments in supply chains. In contrast, the solar-grade market remainedsluggish due to excess supply. Against this backdrop, we adopted a sales strategy
that focused on profits and as a result, sales of solar-grade polycrystalline silicon
were soft particularly in terms of volume.
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 arisingfrom the weaker yen, sales of these products increased compared with thecorresponding period of the previous year.
With regard to aluminum nitride, sales increased due to the recovery of thesemiconductor market.
－6－

As a result of the above, segment net sales decreased 3.7% compared with thecorresponding period of the previous year, to ¥35.2 billion, while operating
income was ¥2.3 billion.

CementWith regard to cement, domestic sales volume increased due to the recovery indemand 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 corresponding period of the previous year.
In the recycling and environment-related business, the Company accepted alarger volume of waste as a result of its higher cement production.
As a result of the above, segment net sales increased 9.8% compared with thecorresponding period of the previous year, to ¥58.1 billion and operating
income increased 19.5% to ¥4.7 billion. The segment reported higher earnings
on higher sales.

Life & Amenity
Sales volume of plastic lens-related materials increased owing to the recovery
from damage 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
compared with the corresponding period of the previous year.
With regard to dental materials and equipment, sales increased due largely tosales expansion of products shipped to overseas markets and a rise in export
prices arising from the weaker yen.
With regard to plastic window sashes, sales volume increased due to business－7－

reconstruction and sales expansion on the back of the recovery in housing starts.
As a result of the above, segment net sales increased 10.4% compared with thecorresponding period of the previous year, to ¥40.5 billion and operating
income increased 75.4% to ¥3.0 billion. The segment reported higher earnings
on higher sales.

(2) Explanation concerning financial position(Status of assets, liabilities and net assets)
As of December 31, 2013, total assets amounted to ¥532.3 billion, an increase of¥14.0 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, deposits at bank and securities, whichwere held to be allotted for the payment of construction expenses, decreased.
Total liabilities amounted to ¥299.6 billion, an increase of ¥5.2 billion comparedwith those as of March 31, 2013.
This was mainly due to short-term loans raised by the medium-term commitmentline contracts, which were concluded for the payment of construction expenses for
the Malaysia project.
Net assets totaled ¥232.6 billion, an increase of ¥8.8 billion compared with those
as of March 31, 2013. This was due to an increase in retained earnings andunrealized holding gains on available-for-sale securities.

(3) Explanation concerning information related to future prediction such as
consolidated performance forecast
Based on the current performance trend, the Company has revised theperformance forecast for fiscal 2013, announced on April 30, 2013. For further－8－

details, please see the Company’s news release, “Notice concerning Revision of
Performance Forecast,” dated January 31, 2014.
The performance forecast has 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 because of various factors that
may arise from now on.

－9－

Segment information
Third Quarter Fiscal 2012 (accumulated figures, April 1, 2012 – December 31, 2012)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement

56,841
721
57,562358

30,227
6,366
36,594(1,247)52,810136
52,947
3,993

Life &
Amenity

35,338
1,428
36,766
1,758

Others*1

Total

13,83915,95329,793
1,871

189,058
24,606
213,664
6,733

Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(24,606)(24,606)(3,976)

189,058
189,058
2,757*1 “Others” segment comprises businesses other than those of the reportable segments. Concretely, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment income (loss) adjustment amount consists mainly of basic R&D expenses that are not related
to specific reportable segments.
*3 With regard to segment income (loss), operating income in the quarterly consolidated statement of income
has been calculated by adjusting the sum total of the reportable segments’ income/loss and the “Others”
segment’s income.

2. Information on impairment loss of fixed assets or goodwill by reportable segment(Significant impairment loss for fixed assets)
There were no material facts to be reported in the reportable segments. During the third quarter fiscal 2012
(April 1, 2012 – December 31, 2012), impairment losses that were not allocated to the reportable segments
amounted to ¥339 million.
Third Quarter Fiscal 2013 (accumulated figures, April 1, 2013 – December 31, 2013)
1. Information on sales and income (loss) by reportable segment(Millions of yen)
Reportable segments

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

Chemicals

Specialty
Products

Cement63,186829
64,016
1,398

27,4697,772
35,241
2,310

58,016
131
58,147
4,773

Life &
Amenity

39,455
1,126
40,582
3,083

Others*1

Total

19,791
15,99135,782
3,439

207,920
25,850233,770
15,005Adjustment*2

Figures inquarterly
consolidated
incomestatement*3(25,850)(25,850)(2,497)

207,920
207,920
12,508*1 “Others” segment comprises businesses other than those of the reportable segments. Concretely, thesegment includes overseas sales companies, a distribution company, a real estate business, etc.
*2 The segment income adjustment amount consists mainly of basic R&D expenses that are not related to
specific reportable segments.
*3 With regard to segment income, operating income in the quarterly consolidated statement of income has
been calculated by adjusting the sum total of the reportable segments’ income and the “Others” segment’s
income.

2. Information on changes in reportable segments
From the first quarter fiscal 2013, the Advanced Components segment was renamed the Life & Amenity
segment. We only changed the segment’s name and therefore the product lines of the said reportable segment－10－

have not been changed.
Also, with the aim of implementing more proper management of operating results, the Company changed theaccounting treatment method for expenses that were classified as “Adjustment.” 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 and income (loss) by reportable segment for the third quarter fiscal 2012, which havebeen recalculated to reflect the above-mentioned changes, is presented in the “Third Quarter Fiscal 2012 (April
1, 2012 – December 31, 2012)” on the previous page.

－11－

Millions of yen
3/31/2013

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
Noncurrent 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
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for investment loss
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets－12－

12/31/2013

44,89765,371
8,310
20,275
13,277
17,110547
16,528(205)
186,11432,76765,38750
17,57911,405
19,150562
11,042(171)
157,774

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

102,092(71,005)
31,087439,998(389,746)
50,252
22,963(21,291)
1,671
32,887
1,514
(830)
684
194,522
311,105

175
22
7,757
7,955

3,456
29
6,810
10,29531,476
4,017
965
13,710(21)(337)
49,811
332,137
518,251

35,914
3,567
971
12,935(22)(217)
53,149374,550
532,325

Millions of yen
3/31/2013

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
Noncurrent 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
Provision For Restructuring
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets－13－

12/31/2013

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

41,25821,8654,000
19,666
294
1,269
507
910
2,072
46
16
23,372
115,281

50,000101,796
514
5,993
969
214
2,687
1,276
156
－
5
15,138
178,753294,380

50,000107,863
436
7,388
1,064
193
2,671
912
136
1
5
13,678184,352
299,633

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

53,45857,670104,435(1,424)
214,140

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

10,212779
1,137
12,1296,421
232,691
532,325

Millions of yen
Q3 FY2012 YTD
Q3 FY2013 YTD
189,058
207,920
141,071
151,243
47,98656,676

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
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Cost of idle operations
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Impairment loss
Loss on disaster
Loss on disposal of noncurrent assets
Loss on sales of stocks of subsidiaries and affiliates
Cost of compensation for building materials
ProvisionForRestructuring
Restructuring expenses
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Income (loss) before minority interests
Minority interests in income (loss)
Net income (loss)－14－

25,765
19,46345,2292,757

25,98018,18744,16812,508

55
491
354
－
1,149
2,050

34
546
426
588
1,110
2,706

1,729
1,589
1,598
4,917
(109)

2,307
1,943
1,127
5,378
9,835

687
156
843

185
379
565

483
339
2
355
－
－
255
632
341
2,411
(1,676)
8,924(10,601)241(10,842)

37
226
－
296
78
336
－
－
49
1,024
9,376
1,991
7,385
(106)
7,491

Consolidated quarterly 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 associates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests－15－

Millions of yen
Q3 FY2012 YTD
Q3 FY2013 YTD(10,601)
7,385
663
1,212
304
44
2,225
(8,376)2,659(1,459)
2,051
212
3,464
10,850(8,620)244

10,83910