Outline of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Second Quarter of Fiscal 2022 ending March 31, 2022
November 11, 2021

Company: Taiheiyo Cement Corporation
Fiscal 2021 2Q
Stock code: 5233
Fiscal 2021
URL:
https://www.taiheiyo-cement.co.jp/english/index.html Fiscal 2022 2Q
Fiscal 2022

: April 1, 2020 through September 30, 2020
: April 1, 2020 through March 31, 2021
: April 1, 2021 through September 30, 2021
: April 1, 2021 through March 31, 2022

The accompanying consolidated financial results are not intended to present the financial results in accordance withaccounting principles and practices generally accepted in countries and jurisdictions other than Japan.
(All yen figures are rounded down to the nearest one million yen.)

1. Consolidated Financial Results for the Second Quarter of Fiscal 2022 (April 1, 2021 through September 30, 2021)(% of change from previous year)(1) Operating Results
Profit attributable toNet Sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal 2022 2Q
339,798(19.2)
25,812(1.2)
26,578(0.2)
19,485
5.5
Fiscal 2021 2Q
420,627(2.5)
26,126
16.3
26,64018.6
18,461
13.9* Comprehensive income : Fiscal 2022 2Q 34,220 (+75.5%) Fiscal 2021 2Q 19,496 (+58.7%)

Earnings per share
Diluted earnings per share
Yen
Yen
163.92152.23-Fiscal 2022 2Q
Fiscal 2021 2Q(2) Financial Position

Total assets
Millions of yen
1,086,616
1,044,227

Fiscal 2022 2Q
Fiscal 2021

Total net assets
Millions of yen
530,655
506,821Equity ratio%
45.5
45.1

Fiscal 2021 470,921* Equity : Fiscal 2022 2Q 493,909* The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied since thebeginning of the first quarter of the the fiscal year ending March 31, 2022. Figures for the second quarter of the fiscal year ending
March 31, 2022 are stated after the application of the said accounting standard, etc.

2. Dividends
Dividend per share

Fiscal 2021
Fiscal 2022
Fiscal 2022(forecast)

1Q

2Q

3Q

4Q

Total

Yen
-

Yen
30.00
35.00

Yen-

Yen
30.00

Yen
60.00

-35.0070.00

3. Consolidated Financial Results Forecast for the Fiscal 2022 (April 1, 2021 through March 31, 2022)(% of change from the corresponding period of the previous year)

Net sales
Millions of yen

Full year

716,500

Operating income% Millions of yen(17.1)
60,000

Profit attributable toowners of parent% Millions of yen%
(7.2)
38,000(18.8)

Ordinary income% Millions of yen(5.7)
61,000Earnings
per shareYen
322.49* This forecast is based on the information available at the date of publication of this material and assumptions at the same date withrespect to the various factors which might have impact on the future financial results. Actual results may differ materially from thisforecast due to various factors.

Page 1 of 8

Consolidated Balance Sheets(Millions of yen)
Fiscal 2021

Fiscal 2022 2Q(As of March 31, 2021)(As of September 30, 2021)

AssetsCurrent assets
Cash and deposits

73,074

Notes and accounts receivable - trade142,515--

143,017

Electronically recorded monetary claims - operating

19,234

21,873Merchandise and finished goods

29,42130,748Notes and accounts receivable - trade, and contract assets

73,263Work in process

2,0791,899

Raw materials and supplies

43,87351,245

Other

17,93016,533

Allowance for doubtful accounts

(795)

(818)

327,333

337,762

Buildings and structures, net

138,410

148,478

Machinery, equipment and vehicles, net

154,207

159,963Land

164,193

156,598

Other, net

83,531

79,063

Total property, plant and equipment

540,342544,104

159

107

Other

28,033

27,861

Total intangible assets

28,192

27,969Investment securities

91,926

119,406

Retirement benefit asset

23,09923,311

Other

39,47040,010Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Goodwill

Investments and other assets

Allowance for doubtful accounts(6,137)(5,949)Total investments and other assets

148,358

176,779

Total non-current assets

716,893

748,853

1,044,227

1,086,616

Total assets

Page 2 of 8

(Millions of yen)
Fiscal 2021

Fiscal 2022 2Q(As of March 31, 2021)(As of September 30, 2021)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Commercial papers

73,596

77,614

7,744

8,716

103,53899,831-

29,000Current portion of bonds payable

10,000-

Income taxes payable

4,590

4,432

Provision for bonuses

6,265

6,221

404

444

Other provisions
Other

98,691

88,527

Total current liabilities

304,831314,788

Bonds payable

50,00060,000Long-term borrowings

84,56380,626Retirement benefit liability

Non-current liabilities

24,70325,482

Provision for retirement benefits for directors

503

468

Provision for special repairs

180

209

Other provisions

511

495

Asset retirement obligations

7,821

8,325

Other

64,29065,564

Total non-current liabilities

232,574

241,172

Total liabilities

537,405

555,960

86,174

86,174

Net assets
Shareholders' equity
Share capital
Capital surplus

60,292

46,546

Retained earnings

365,593379,376

Treasury shares(26,113)(15,003)

Total shareholders' equity

485,946

497,093

12,42913,783

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

1

1

4,898

4,902

(29,917)(19,030)

Remeasurements of defined benefit plans(2,438)(2,840)Total accumulated other comprehensive income(15,025)(3,184)

Revaluation reserve for land
Foreign currency translation adjustment

Non-controlling interests

35,89936,745

Total net assets

506,821

530,655

1,044,227

1,086,616

Total liabilities and net assets

Page 3 of 8

Consolidated Statements of Income(Millions of yen)
Fiscal 2021 2Q

Fiscal 2022 2Q(April 1, 2020 throughSeptember 30, 2020)(April 1, 2021 throughSeptember 30, 2021)

Net sales

420,627

339,798

Cost of sales

331,929

252,307

Gross profit

88,69787,490

Selling, general and administrative expenses

62,57061,677

Operating income

26,12625,812

Interest income

244

221

Dividend income

859

865

Share of profit of entities accounted for using equity method

1,075

1,063

Other

1,530

1,426

Total non-operating income

3,709

3,577

Interest expenses

1,814

1,360

Other

1,382

1,450

Non-operating income

Non-operating expenses

Total non-operating expenses

3,196

2,811

Ordinary income

26,64026,578Gain on disposal of non-current assets

2,374

5,934

Gain on sale of investment securities-435

Extraordinary income

Other
Total extraordinary income

90782,465

6,448

Extraordinary losses
Loss on disposal of non-current assets

1,647

1,357

Impairment losses

133

2,015

Loss on temporary suspension of operations

548

37

Other267

437

Total extraordinary losses

2,598

3,847

Profit before income taxes

26,507

29,179

Income taxes

6,604

8,469

Profit19,903

20,710

Profit attributable to non-controlling interests

1,441

1,224

Profit attributable to owners of parent

18,461

19,485

Page 4 of 8Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal 2021 2Q

Fiscal 2022 2Q(April 1, 2020 throughSeptember 30, 2020)(April 1, 2021 throughSeptember 30, 2021)

19,903

20,710

2,169

1,544

(0)

0(2,935)

11,731Remeasurements of defined benefit plans, net of tax

478

(416)

Share of other comprehensive income of entities accounted for using equity method

(118)

651

Total other comprehensive income(406)

13,510Comprehensive income

19,49634,220Comprehensive income attributable to owners of parent

18,22631,323Comprehensive income attributable to non-controlling interests

1,269

2,897

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

Comprehensive income attributable toPage 5 of 8

Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2021 2Q

Fiscal 2022 2Q(April 1, 2020 throughSeptember 30, 2020)(April 1, 2021 throughSeptember 30, 2021)

Profit before income taxes

26,507

29,179Depreciation

25,742

26,61725

27(1,075)(1,063)

Cash flows from operating activities

Amortization of goodwill
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on valuation of short-term and long-term investment securities

3211

Decrease (increase) in net retirement benefit asset and liability

(520)

(679)

Increase (decrease) in provision for retirement benefits for directors

(77)

(35)

Increase (decrease) in provision for bonuses

54

(43)

Increase (decrease) in allowance for doubtful accounts

106

(92)

Increase (decrease) in other provisions

(300)

53

Interest and dividend income(1,103)(1,086)

Interest expenses

1,814

1,360

Loss (gain) on sale of investment securities-(400)

Loss (gain) on disposal of non-current assets(726)(4,576)

Impairment losses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables

133

2,015

6,254

(1,514)72(7,238)(6,828)

4,147

Other, net

4,888

1,766

Subtotal

54,99948,446

Interest and dividends received

1,602

1,661

Interest paid

(1,871)(1,468)

Income taxes paid

(5,977)(5,547)

Net cash provided by (used in) operating activities

48,75343,093

Cash flows from investing activities
Decrease (increase) in time deposits(2,902)(1,160)Purchase of non-current assets(30,402)(34,570)

Proceeds from sale of non-current assets

3,973

5,844

Purchase of investment securities(27)(24,098)

Proceeds from sale of investment securities

13615

Loan advances(1,608)(1,008)

Collection of loans receivable

1,252

1,056

Other, net

(38)

176

(29,740)(53,144)

Net cash provided by (used in) investing activities

Page 6 of 8

(Millions of yen)
Fiscal 2021 2Q

Fiscal 2022 2Q(April 1, 2020 throughSeptember 30, 2020)(April 1, 2021 throughSeptember 30, 2021)

Net increase (decrease) in short-term borrowings

21,757(5,790)

Increase (decrease) in commercial papers

7,000

29,000

Proceeds from long-term borrowings

14,98014,130

Repayments of long-term borrowings(20,315)(16,567)-

10,000(10,000)

Purchase of treasury shares(5,038)(5,027)

Dividends paid(3,676)(3,561)(752)(1,423)

Other, net(4,584)(4,169)Cash flows from financing activities

Proceeds from issuance of bonds
Redemption of bonds

Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities

9,372

6,590

Effect of exchange rate change on cash and cash equivalents

(367)

1,876

Net increase (decrease) in cash and cash equivalents

28,017(1,584)

Cash and cash equivalents at beginning of period

45,74863,819Cash and cash equivalents at end of period

73,76562,235

Page 7 of 8

Consolidated Segment Information
Fiscal 2021 2Q (April 1, 2020 through September 30, 2020)【Industry Segments】(Millions of yen)
Reportable Segments
CementBusiness

MineralResources
Business

Environmental
Business

Construction
Materials
Business

Total

OtherTotal

ConsolidatedTotal

Adjustment

Net sales
Sales to outside
customers

300,401

25,30533,04732,417391,172

29,455

420,627-

420,627

Inter-segment
sales
Total

4,975

11,576

4,675

2,101

23,329

11,20734,536(34,536)-

305,376

36,882

37,72334,518414,501

40,662455,163(34,536)

420,627

Segment income

16,898

2,611

2,826

867

23,204

2,917

26,122

4

26,126

Fiscal 2022 2Q (April 1, 2021 through September 30, 2021)【Industry Segments】(Millions of yen)
Reportable Segments
CementBusiness

MineralResources
Business

Environmental
Business

Construction
MaterialsBusiness

Total

Other

Total

Consolidated
Total

Adjustment

Net sales
Sales to outside
customers
Inter-segment
sales
Total

221,943

28,60832,15728,502311,21228,585

339,798-

339,798

3,407

8,606

1,679

758

14,451

13,41527,866(27,866)-

225,351
37,21433,83729,261
325,664
42,001
367,665(27,866)
339,798
Segment income
16,409
2,633
3,066
1,146
23,256
2,462
25,71894
25,812* The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied since the beginning of the first quarter of
the the fiscal year ending March 31, 2022, and the method of calculation of profit or loss of reportable segments has similarly been changed due to the change in
the accounting method for revenue recognition.
As a result of the change, compared to the previous method, net sales decreased by 89,137 million yen and segment income increased by 19 million yen in Cementbusiness, net sales decreased by 1,240 million yen and segment income increased by 4 million yen in Mineral resources business, net sales decreased by 6,536
million yen and segment income increased by 32 million yen in Environmental business, net sales decreased by 5,031 million yen and segment income decreasedby 11 million yen in Construction materials business, and net sales decreased by 2,743 million yen and segment income increased by 31 million yen in Other.
After elimination of inter-segment transactions, consolidated total net sales decreased by 95,219 million yen.

Page 8 of 8