Reference Materials of Financial Results
for the First Half of Fiscal 2021
ending March 31, 2021

November 10, 2020
Taiheiyo Cement Corporation

Contents
1. Highlights of Consolidated Financial Results

Page 2

5. Forecast for the Fiscal 2021

Page 12(1) Consolidated Statements of Income
2. Trend in Construction Investments andDomestic Demand for Cement

Page 3

3. Volume of Sales and Shipment Results byRegion

Page 4(2) Consolidated Segment Information

6. Reference Information

Page 15(1) Change in Interest-bearing Debt

(1) Volume of Sales of Cement by Region(Excluding Imports)(2) Change in Capital Investment(2) Volume of Shipment of Ready-mixed
Concrete by Region(3) Change in Depreciation Expenses(4) Change in Experiment and Research Expenses

4. Financial Results for the First Half of Fiscal
2021(1) Consolidated Statements of Income

Page 6(5) Sales Volume of Cement in Overseas Subsidiaries(6) Overview of Businesses in the U.S.A.

(2) Consolidated Segment Information(3) Consolidated Balance Sheets(4) Consolidated Statements of Cash Flows

Page 1

1. Highlights of Consolidated Financial Results(Millions of yen)First Half ofFirst Half ofFY 2020
FY2020
FY2021ChangeChangeNet sales

431,389

420,627(10,762)

Operating income

22,463

26,126

3,663

Ordinary income

22,47026,6404,170

Profit attributable to owners of parent

16,202

18,461

2,259

FY 2019＜ Indexes ＞

FY 2020

As of Mar 31, As of Sep 30,2020
2020

ChangeChangeEquity ratio (%)

42.3

42.3

0.0

Equity ratio based on market value (%)

21.9

30.5

8.6

3,567.6

3,706.5

138.9

First Half ofFY2020

First Half ofFY2021

132.4

152.2

Equity per share (yen)Earnings per share (yen)Change19.8

Page 2

2. Trend in Construction Investments and Domestic Demand for Cement
10 thousand tons

Trillions of yen
70

60

7,000

5,969

5,757

5,909

5,899

6,000

5,551
5,009
4,771

50
4,273

4,161

4,265

4,458

5,000

4,555
4,267

4,178

4,188

4,259

4,097

40

30

2,884

2,764

2,885

2,833

2,102
20

988

1,037

1,027

959

1,002

4,000

3,000

2,736
2,445

10

3,980

1,067

1,105

1,982

2,016

997

1,001

2,134

963

2,291

850

2,261

942

2,115

1,058

2,021

1,153

2,084

1,181

2,077

1,037

2,036

1,053

1,905

1,15002,0001,0000FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Estimate of construction investments (Left axis)

Domestic demand Full Year (Right axis)

Domestic demand 1st Half (Right axis)

Exports Full Year (Right axis)

Estimate of construction investments : for Fiscal 2004 to Fiscal 2020, Ministry of Land, Infrastructure, Transport and Tourism: for Fiscal 2021, Research Institute of Construction and Economy (RICE)
Domestic demand : for Fiscal 2004 to Fiscal 2020, Japan Cement Association： for Fiscal 2021, Our estimates
Exports: Japan Cement Association

Page 3

3. Volume of Sales and Shipment Results by Region(1) Volume of Sales of Cement by Region (Excluding Imports)
First Half of FY2019
Year-on-year
Volume of sales
change(Thousand tons)(%)

First Half of FY2020
Year-on-year
Volume of sales
change(Thousand tons)(%)

First Half of FY2021
Year-on-year
Volume of sales
change(Thousand tons)(%)

Hokkaido

1,048

(7.7)

1,048

0.0

1,068

2.0

Tohoku2,037(5.8)

1,936(5.0)

1,743(10.0)

Kanto 1

4,899

3.2

4,730(3.5)

4,351(8.0)

Kanto 2

1,815(4.9)

1,707(6.0)

1,705(0.1)

Hokuriku

1,131

19.9

1,156

2.2

1,020(11.8)

Tokai

2,414

8.3

2,270(6.0)

2,105(7.3)

Kinki

2,606(4.9)

2,703

3.7

2,610(3.4)

Shikoku712(5.4)732

2.8693(5.3)

Chugoku

1,148(7.2)

1,210

5.4

1,163(3.9)

Kyushu2,410

1.7

2,362(2.0)

2,135(9.6)

Okinawa

484(0.5)499

3.2451(9.6)

Domestic Total

20,703(0.1)

20,352(1.7)

19,045(6.4)

Exports

5,262(14.6)

5,017(4.6)

5,259

4.8

Total

25,965(3.4)

25,369(2.3)

24,304(4.2)

Source : Japan Cement Association

Page 43. Volume of Sales and Shipment Results by Region(2) Volume of Shipment of Ready-mixed Concrete by Region
First Half of FY2019
Volume ofYear-on-year
shipmentchange(Thousand cubic(%)
meters)First Half of FY2020
Volume ofYear-on-year
shipmentchange(Thousand cubic(%)
meters)First Half of FY2021
Volume ofYear-on-year
shipmentchange(Thousand cubic(%)
meters)Hokkaido

1,826(7.4)

1,920

5.1

1,862(3.0)

Tohoku3,951(7.4)

3,682(6.8)

3,292(10.6)

Kanto 1

10,684

6.2

10,119(5.3)

9,456(6.6)

Kanto 2

2,952(3.1)

2,835(4.0)

2,962

4.5

Hokuriku

2,375

20.1

2,383

0.4

2,133(10.5)

Tokai

4,755

2.3

4,665(1.9)

4,407(5.5)

Kinki

5,340(9.9)

5,457

2.2

5,330(2.3)

Chugoku

2,164(9.1)

2,340

8.1

2,260(3.4)

Shikoku

1,482(10.5)

1,559

5.2

1,534(1.6)

Kyushu5,877

1.6

5,783(1.6)

5,173(10.6)

Total

41,405(0.8)

40,744(1.6)

38,409(5.7)

Source : National Federation of Ready-mixed Concrete Industrial Associations

Page 54. Financial Results for the First Half of Fiscal 2021
(1) Consolidated Statements of Income(Millions of yen)First Half ofFY2020

First Half ofFY2021

Net Sales

431,389

420,627(10,762)

Cost of sales

342,745

331,929(10,816)

Selling, general and administrative expenses

66,17962,570(3,608)Operating income

22,463

26,126

3,663

6513

506

Ordinary income

22,47026,6404,170

Extraordinary income and losses

1,263(132)(1,395)

Profit before income taxes

23,73326,507

2,774

Profit attributable to owners of parent

16,202

18,461

2,259

110.06108.23(1.83)

Non-operating income and expenses

Change＜ Reference Information＞
Foreign exchange rate (yen/US$)

Page 6

4. Financial Results for the First Half of Fiscal 2021
(2) Consolidated Segment Information
Net Sales and Operating Income by Reportable Segments
Net SalesFirst Half First Halfof FY2020 of FY2021
Cement(Millions of yen)

Operating IncomeChangeFirst Half First Halfof FY2020 of FY2021

ChangeDomestic

207,051

199,112(7,939)3,703

3,641(61)Business Overseas Subsidiaries

101,544

106,264

4,719

8,584

13,257

4,672

Total

308,596

305,376(3,219)12,28816,8984,610

Mineral Resources Business

39,46136,882(2,578)

3,230

2,611

(618)

Environmental Business

41,53737,723(3,814)

3,546

2,826

(720)

Construction Materials Business

39,03934,518(4,520)

1,951

867

(1,083)

Other

36,626

40,662

4,035

1,337

2,917

1,580

Total

465,261

455,163(10,097)

22,354

26,122

3,767

Elimination(33,871)(34,536)

(664)

109

4(104)

Consolidated Total

431,389

420,627(10,762)

22,463

26,126

3,663

Page 7

4. Financial Results for the First Half of Fiscal 2021

Sales Volume of Cement(Thousand tons)

First Half of First Half ofFY2020
FY2021(2) Consolidated Segment Information

Domestic

7,202

6,792

(412)

Export

1,851

1,803

(48)

Cement Business
Net Sales

Domestic

Change(Millions of yen)First Half First Halfof FY2020 of FY2021
207,051
199,112

ChangeMain Factors of Changes in Net Sales and Operating Income(7,939) Decrease in sales of domestic cement and soil solidifying materials -3.2 billion yen
Decrease in export cement volume -0.2 billion yen
Price difference in domestic cement and soil solidifying materials +0.0 billion yen

OperatingIncomeOverseas
Subsidiaries

101,544

Total

308,596

305,376

3,703

3,641

Domestic

106,264

Price difference in export cement -0.7 billion yen
Decrease in sales from subsidiaries producing or selling cement or ready-mixed
concrete, etc. -3.8 billion yen
4,719 U.S.A +US$66 million,
China -US$14 million, Asia and other -US$10 million
Effect of foreign exchange -1.7 billion yen(3,219)(61) Decrease in sales of domestic cement and soil solidifying materials -1.7 billion yen
Decrease in export cement volume -0.1 billion yen
Price difference in domestic cement and soil solidifying materials +0.0 billion yen
Increase in net export cement revenue +0.1 billion yen
Decrease in variable cost +2.5 billion yen

Overseas
Subsidiaries

8,584

Total

12,28813,257

Increase in fixed cost -0.8 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed
concrete, etc. -0.1 billion yen
4,672 U.S.A +US$43 million,China -US$3 million, Asia and other +US$5 million
Effect of foreign exchange -0.2 billion yen

16,8984,610

Page 84. Financial Results for the First Half of Fiscal 2021
(2) Consolidated Segment Information
Reportable Segments (Excluding Cement Business) and Other(Millions of yen)

MineralResourcesbusiness

Net SalesFirst Half First Halfof FY2020 of FY2021
39,46136,882

ChangeMain Factors of Changes in Net Sales and Operating Income(2,578) Decrease in sales volume of aggregates and limestone for the iron and steel industry

OperatingIncome

3,2302,611(618)

Environmental Net Sales
Business

41,53737,723Operating
Income3,546

Construction
Materials
BusinessNet Sales

39,03934,518Operating
Income1,951

867(1,083)

OtherNet Sales

36,626

40,662

4,035

Operating
Income

1,337

2,917

1,580

(3,814) Decrease of processing operations in coal ash and decrease in sales volumeof fuel and calcium carbonate used for flue gas desulfurization

2,826(720) Decrease of processing operations in coal ash and decrease in sales volumeof calcium carbonate used for flue gas desulfurization(4,520) Decrease in sales of ground improvement projects and ALC (Autoclaved LightweightConcrete)

Page 94. Financial Results for the First Half of Fiscal 2021
(3) Consolidated Balance Sheets

Notes and accounts
receivable - trade
Inventories

159,048

151,032(8,015)78,28377,365

(917)

Other

29,52930,645

1,115

Total current assets

318,502341,487

22,984

Total property, plant andequipment
Total intangible assets

544,553

543,590(963)

29,81429,285(528)

Total investments and otherassets

140,053

141,140

1,087

Total non-current assets
Total assets

714,420714,016

1,032,923

1,055,503

As of Dec
31, 2019
Foreign exchange rate(yen/US$)109.56

As of Jun
30, 2020
107.74(404)

Current liabilities

245,910228,098(17,811)

Total liabilities

559,682

572,165

12,483

Share capital

86,174

86,174-

Capital surplus

60,23360,29157

Retained earnings

326,086

340,871

14,785

Treasury shares(16,098)(21,104)(5,005)

Total shareholders'equityAccumulated othercomprehensive income
Non-controlling interests

456,395

466,233

9,838(19,716)(19,951)(235)

36,56337,057494

Total net assets

473,241

483,338

10,097

1,032,923

1,055,503

22,58022,580 Total liabilities and net assets

As of Mar31, 2020

Change(1.82)(Millions of yen)
As of Mar As of Sep
Change31, 2020
30, 2020
313,771
344,066
30,294Non-current liabilities

Shareholders' equity

30,802

Liabilities

ChangeNet assets

Non-current assets

Curent assets

Cash and deposits

As of MarAs of Sep
31, 2020
30, 2020
51,641
82,443

Interest-bearing Debt
(Millions of yen)

266,115

As of Sep
30, 2020
289,281

Change23,165

Page 10

4. Financial Results for the First Half of Fiscal 2021
(4) Consolidated Statements of Cash Flows(Millions of yen)First Half ofFY2020

First Half ofFY2021

Cash flows from operating activities

35,56648,753

13,186

Cash flows from investing activities(33,178)(29,740)

3,438

Cash flows from financing activities(9,978)

9,372

19,350

(352)

(367)

(15)

(7,942)28,01735,960000

Cash and cash equivalents at beginning of period

50,08445,748(4,336)

Cash and cash equivalents at end of period

42,14173,76531,623

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Other＜Indexes＞

ChangeAs of Mar 31, As of Sep 30,
2020
2020

ChangeCurrent ratio (%)

101.5

99.3

(2.3)

Net DE ratio (times)

0.49

0.46

(0.03)
Page 11

5. Forecast for the Fiscal 2021
(1) Consolidated Statements of Income(100 million yen)
FY2020(actual)FY2021(forecast)

ChangeNet Sales

8,843

8,670

(173)

Operating income

610

630

20

Ordinary income

605

630

25

Extraordinary income or losses

(87)

(40)

47

Profit before income taxes

517

590

73

Profit attributable to owners of parent391

410

19

Domestic demand (10 thousand ton)

4,097

3,980(117)

Foreign exchange rate (yen/US$)

109.03107.00(2.03)＜ Preconditions＞

Page 12

5. Forecast for the Fiscal 2021
(2) Consolidated Segment Information
Net Sales and Operating Income by Reportable Segments
Net Sales
FY2020(actual)CementFY2021(forecast)(100 million yen)

Operating Income
FY2020(actual)ChangeFY2021(forecast)

ChangeDomestic

4,151

4,070(81)

149

170

21

Business Overseas Subsidiaries

2,132

2,130(2)

215

255

40

Total

6,284

6,200(84)36542560

Mineral Resources Business801740(61)7155(16)

Environmental Business

844780(64)7754(23)

Construction Materials Business

813

760(53)4535(10)

Other830

910

80

53

61

8Total9,573

9,390(183)

612

630

18

Elimination

(729)

(720)

9(2)

02

Consolidated Total

8,843

8,670

(173)

610

630

20Page 13

5. Forecast for the Fiscal 2021

Sales Volume of Cement
FY2020(actual)(3) Consolidated Segment Information
Cement Business(Thousand tons)
FY2021(forecast)

ChangeDomestic

14,477

14,210(267)Export

3,864

4,045

181

(100 million yen)

Net SalesDomesticFY2020
FY2021(actual)(forecast)
4,151
4,070

ChangeMain Factors of Changes in Net Sales and Operating Income(81) Decrease in sales of domestic cement and soil solidifying materials -1.7 billion yen
Increase in export cement volume +0.8 billion yen
Price difference in domestic cement and soil solidifying materials +0.3 billion yen

Overseas
Subsidiaries

2,132

2,130

Price difference in export cement -1.3 billion yen
Decrease in sales from subsidiaries producing or selling cement or ready-mixed
concrete, etc. -6.2 billion yen(2) U.S.A +US$70 million
China -US$43 million, Asia and other -US$21 million
Effect of foreign exchange -0.9 billion yen

Operating
IncomeTotal
Domestic

6,284
149

6,200170(84)21 Decrease in sales of domestic cement and soil solidifying materials -1.2 billion yen
Increase in export cement volume +0.3 billion yen
Price difference in domestic cement and soil solidifying materials +0.2 billion yen
Decrease in net export cement revenue -0.2 billion yen
Decrease in variable cost +4.8 billion yen

Overseas
Subsidiaries

215

255

Increase in fixed cost -2.0 billion yen
Increase in income from subsidiaries producing or selling cement or ready-mixed
concrete, etc. +0.2 billion yen
40 U.S.A +US$59 million
China -US$18 million, Asia and other +US$0 million
Effect of foreign exchange -0.5 billion yen

Total

365

42560

Page 14

6. Reference Information(1) Change in Interest-bearing Debt (100 million yen）

The company

3,409
2,886
2,111

As of Mar 31, 2017

2,892

2,630
1,975

1,840

1,013

853

790

917

As of Mar 31, 2018

As of Mar 31, 2019

As of Mar 31, 2020

As of Mar 31, 2021
(forecast)

As of Sep 30, 2020

The company

372344208

FY2018FY2019Whole group

692

500

414
263

Consolidated subsidiaries

776677580

543

FY2017Whole group

1,132(2) Change in Capital Investment (100 million yen）

199

2,661
1,808

1,783

1,754

1,298

2,796

Consolidated subsidiaries

276

324 368284
126 158

FY2020

FY2021(forecast)First Halfof FY2021

Page 15

6. Reference Information(3) Change in Depreciation Expenses (100 million yen）
444

The company

440

264
180

178

331304

263

257

205

184

177

Whole group

536

488

440

262

Consolidated subsidiaries95FY2017

FY2018FY2019FY2020(4) Change in Experiment and Research Expenses (100 million yen）
453744364335

The company
4435

FY2021(forecast)

162

First Halfof FY2021

Consolidated subsidiaries

Whole group

4641

2017888953

FY2017FY2018FY2019FY2020

FY2021(forecast)First Halfof FY2021

Page 16

6. Reference Information(5) Sales Volume of Cement in Overseas Subsidiaries (10 thousand tons)
664

644
565

496

603

China

734

723

409

393

U.S.A.

Asia and other715
608

581
403

380

320

343

300
155

FY2017FY2018FY2019FY2020(6) Overview of Businesses in the U.S.A. （million US$）Net salesFirst Halfof FY2021

Operating income

1,411

1,341

1,328

1,224

FY2021(forecast)

1,048

187
97127703

1299256

FY2017FY2018FY2019FY2020

FY2021(forecast)First Halfof FY2021

Page 17