Outline of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Fiscal 2020 ended March 31, 2020
May 20, 2020

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

Fiscal 2019 : April 1, 2018 through March 31, 2019
Fiscal 2020 : April 1, 2019 through March 31, 2020
Fiscal 2021 : April 1, 2020 through March 31, 2021

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 Fiscal 2020 (April 1, 2019 through March 31, 2020)(% of change from previous year)(1) Operating Results
Profit attributable to
Net Sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Fiscal 2020
884,350(3.5)
61,008(7.6)
60,541(5.9)
39,151(9.9)
Fiscal 2019
916,071
5.2
66,012
1.4
64,306(0.1)
43,452
12.8* Comprehensive income : Fiscal 2020 31,145 (-11.1%) Fiscal 2019 35,026 (-16.0%)

EPS

Diluted EPS

Yen
319.89351.72

Fiscal 2020
Fiscal 2019

ROE

Yen
-

ROA
%
9.2
10.7

%
5.9
6.3

Operating income
to net sales
%
6.9
7.2

* Equity in earnings of unconsolidated subsidiaries and affiliates : Fiscal 2020 2,427 Fiscal 2019 2,288(2) Financial Position
Total assets
Millions of yen
Fiscal 2020
1,032,923
Fiscal 2019
1,034,428* Equity : Fiscal 2020 436,678

Total net assets
Millions of yen
473,241
450,645

Equity ratio

Equity per share
%
42.3
40.1

Yen
3,567.63
3,388.41

Fiscal 2019 414,709(3) Consolidated Cash Flows
Cash flows fromoperating activities
Millions of yen
Fiscal 2020
90,902
Fiscal 201997,283

Cash flows frominvesting activities
Millions of yen(65,534)(58,025)

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(29,436)
45,748(33,753)
50,084

2. Dividends
Total amountof cashdividends
4Q
Total(annual)Yen
Yen Millions of yen
30.00 80.00
9,925
30.00 60.00
7,362
30.00 60.00

Dividend per share

Fiscal 2019
Fiscal 2020
Fiscal 2021(forecast)

1Q

2Q

3Q

Yen
-

Yen
50.00
30.00
30.00

Yen
-

Ratio of total amountof dividends toshareholder’sequity(consolidated)
%
%
22.8
2.4
18.8
1.7
23.0

Dividend ratio(consolidated)* The dividend per share of the Second Quarter of Fiscal 2019 includes an ordinary dividend of 30.00 yen and a commemorative
dividend of 20.00 yen.

3. Consolidated Financial Results Forecast for the Fiscal 2021 (April 1, 2020 through March 31, 2021)(% of change from the corresponding period of the previous year)

Net sales
Millions of yen

First half
Full year

414,000
876,000

Operating income% Millions of yen(4.0)
16,500(0.9)
55,000

Profit attributable toowners of parent% Millions of yen%(26.6)
9,000(44.5)(10.0)
32,000(18.3)

Ordinary income% Millions of yen(26.5)
16,500(9.8)
54,500

EPS
Yen
73.53
261.44* This forecast is based on the information available at the date of publication of this material and assumptions at the same datewith respect to the various factors which might have impact on the future financial results. Actual results may differ materiallyfrom this forecast due to various factors.

Page 1 of 10

Consolidated Balance Sheets(Millions of yen)
Fiscal 2019

Fiscal 2020

(As of March 31, 2019) (As of March 31, 2020)
AssetsCurrent assets
Cash and deposits

56,56151,641

Notes and accounts receivable - trade180,535

159,048

Electronically recorded monetary claims - operating

12,99813,507

Merchandise and finished goods

31,13830,897Work in process

2,268

2,310

Raw materials and supplies

43,31445,075

Short-term loans receivable

3,421

3,289

Other

11,714

14,035

Allowance for doubtful accounts(646)(1,302)

341,307

318,502

Buildings and structures

483,443

490,824

Accumulated depreciation(347,790)(351,877)

Total current assets
Non-current assets
Property, plant and equipment

Buildings and structures, net

135,653

138,947

Machinery, equipment and vehicles

886,495

919,556

Accumulated depreciation(751,845)(756,611)

Machinery, equipment and vehicles, net

134,649

162,944Land

157,638

164,869

Leased assets

51,64853,175

Accumulated depreciation(29,527)(31,234)

Leased assets, net

22,12021,941

Construction in progress

48,67830,665

Other53,171

66,706

Accumulated depreciation(30,971)(41,521)

Other, net

22,19925,184

Total property, plant and equipment

520,939544,553

321

179

Other

30,553

29,634

Total intangible assets

30,87529,814

83,69282,931Intangible assets
Goodwill

Investments and other assets
Investment securities
Long-term loans receivable

1,754

1,880

Retirement benefit asset

17,807

11,090

Deferred tax assets

17,10921,118Other

28,37429,359Allowance for doubtful accounts(7,432)(6,327)

Total investments and other assets

141,306

140,053

Total non-current assets

693,120

714,420

1,034,428

1,032,923

Total assets

Page 2 of 10

(Millions of yen)
Fiscal 2019

Fiscal 2020

(As of March 31, 2019) (As of March 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

96,27583,430

8,716

5,330

Short-term borrowings

135,381

120,783

Commercial papers

4,000

12,000Current portion of bonds

10,000-

Income taxes payable

8,376

6,024

Provision for bonuses

6,046

6,158

220

139

Other provisions
Other

80,37379,906

Total current liabilities

349,390313,771

Non-current liabilities
Bonds payable

30,00030,000Long-term borrowings

100,233

103,332

Deferred tax liabilities

7,630

7,491

Retirement benefit liability

24,20624,999Provision for retirement benefits for directors

535

521

Provision for special repairs

75

128

Other provisions

757

828

Lease obligations

17,61617,996

Asset retirement obligations

7,619

7,341

Other

45,71853,270Total non-current liabilities

234,392

245,910

Total liabilities

583,783

559,682

Share capital

86,174

86,174

Capital surplus

60,40860,233

Net assets
Shareholders' equity

Retained earnings

294,265

326,086

Treasury shares(16,081)(16,098)

Total shareholders' equity

424,767

456,395

8,688

6,723

(3)

(0)

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

5,019

4,968

Foreign currency translation adjustment(20,128)(21,413)

Remeasurements of defined benefit plans(3,632)(9,995)

Total accumulated other comprehensive income(10,057)(19,716)

Non-controlling interests

35,93536,563

Total net assets

450,645473,241

1,034,428

1,032,923

Total liabilities and net assets

Page 3 of 10

Consolidated Statements of Income(Millions of yen)
Fiscal 2019

Fiscal 2020

(April 1, 2018 throughMarch 31, 2019)(April 1, 2019 throughMarch 31, 2020)

Net sales

916,071884,350

Cost of sales

712,660

689,321

Gross profit

203,411

195,029

490

89

Other

136,907

133,930

Total selling, general and administrative expenses

137,398

134,020

Operating income

66,01261,008Selling, general and administrative expenses
Amortization of goodwill

Non-operating income
Interest income

632

540

Dividend income

1,227

1,267

247

141

Rental income from real estate
Share of profit of entities accounted for using equity method

2,288

2,427

-

1,035

Other

3,294

2,661

Total non-operating income

7,691

8,075

Interest expenses

4,068

3,876

Loss on disposal of inventories

1,126

126

Other

4,202

4,538

Total non-operating expenses

9,397

8,541

Ordinary income

64,30660,541Gain on disposal of non-current assets

1,149

754

Gain on sales of investment securities

532

205

Foreign exchange gains

Non-operating expenses

Extraordinary income

Compensation income

-

2,730

234

147

1,917

3,838

Loss on disposal of non-current assets

4,828

5,580

Loss on sales of investment securities

133

36

Other
Total extraordinary income
Extraordinary losses

Loss on valuation of investment securities
Impairment loss
Other

326

222

1,101

5,451

660

1,311

Total extraordinary losses

7,049

12,602

Profit before income taxes

59,174

51,777

Income taxes - current

11,760

11,223

Income taxes - deferred

1,796

(300)

Total income taxes

13,557

10,923

Profit45,61640,854

Profit attributable to non-controlling interests

2,164

1,703

Profit attributable to owners of parent

43,45239,151Page 4 of 10

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal 2019

Fiscal 2020

(April 1, 2018 throughMarch 31, 2019)(April 1, 2019 throughMarch 31, 2020)

45,61640,854(1,657)(1,720)(4)3Foreign currency translation adjustment(4,733)(1,494)Remeasurements of defined benefit plans(3,553)(6,193)

(641)

(302)

Total other comprehensive income(10,590)(9,708)Comprehensive income

35,02631,145Comprehensive income attributable to owners of parent

33,74629,542Comprehensive income attributable to non-controlling interests

1,280

1,602

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

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

Comprehensive income attributable toPage 5 of 10

Consolidated Statements of Changes in Net Assets
Fiscal 2019 (April 1, 2018 through March 31, 2019)(Millions of yen)
Shareholders' equity

Balance at beginning of period

Share capital

Capital surplus

86,17460,33986,17460,339Treasury shares

Total
shareholders'equity260,016(10,947)

395,582

260,016(10,947)

395,582

Retainedearnings

Cumulative effects of changes in accounting
policies
Restated balance
Changes in items during period
Change in ownership interest of parent due totransactions with non-controlling interests

69

69

Dividends of surplus(9,909)(9,909)Profit attributable to owners of parent

43,45243,452

Purchase of treasury shares

0

Disposal of treasury shares(5,134)(5,134)00

Increase by merger of consolidated subsidiaryand non-consolidated subsidiary

(53)

(53)

Adjustment to retained earnings due to change
in US tax rate

759

759

Net changes in items other than shareholders'equityTotal changes in items during period
Balance at end of period-

69

34,249(5,134)29,18586,17460,408294,265(16,081)424,767

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference on Deferred gains or
Revaluationtranslationof defined
available-for-sale losses on hedges reserve for land
adjustment
benefit planssecurities
Balance at beginning of period

Totalaccumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

10,941

1

5,057(16,201)

(111)

(313)

37,058432,326

10,941

1

5,057(16,201)

(111)

(313)

37,058432,326

Cumulative effects of changes in accounting
policies
Restated balance
Changes in items during period
Change in ownership interest of parent due totransactions with non-controlling interests

69

Dividends of surplus(9,909)Profit attributable to owners of parent

43,452

Purchase of treasury shares(5,134)

Disposal of treasury shares

0

Increase by merger of consolidated subsidiaryand non-consolidated subsidiary(53)

Adjustment to retained earnings due to change
in US tax rate759

Net changes in items other than shareholders'equity(2,252)(4)(37)(3,927)(3,521)(9,744)(1,122)(10,866)

Total changes in items during period(2,252)(4)(37)(3,927)(3,521)(9,744)(1,122)

18,318

8,688

(3)

5,019

(20,128)(3,632)(10,057)

35,935

450,645

Balance at end of period

Page 6 of 10

Fiscal 2020 (April 1, 2019 through March 31, 2020)(Millions of yen)
Shareholders' equity

Balance at beginning of period

Share capital

Capital surplus

86,17460,408Cumulative effects of changes in accounting
policies
Restated balance

Retainedearnings
294,265

Treasury shares

Total
shareholders'equity(16,081)424,767(48)
86,17460,408294,217(48)(16,081)424,718

Changes in items during period
Change in ownership interest of parent due totransactions with non-controlling interests

(220)

(220)

Dividends of surplus(7,350)(7,350)

Profit attributable to owners of parent

39,151

39,151

Purchase of treasury shares

(60)

(60)

43

78

Disposal of treasury shares

35

Increase by merger of consolidated subsidiaryand non-consolidated subsidiary

10

68

-

(174)

31,868(17)

31,676

86,17460,233

326,086(16,098)456,395

78

Adjustment to retained earnings due to change
in US tax rate
Net changes in items other than shareholders'equityTotal changes in items during period
Balance at end of period

Accumulated other comprehensive income
Valuation
Foreign currency Remeasurements
difference on Deferred gains or
Revaluationtranslationof defined
available-for-sale losses on hedges reserve for land
adjustment
benefit planssecurities
Balance at beginning of period

8,688

(3)

5,019

(20,128)(3,632)

Total
accumulated
othercomprehensive
income(10,057)

Cumulative effects of changes in accounting
policies
Restated balance

8,688

(3)

5,019

(20,128)(3,632)(10,056)

Non-controllinginterests

Total net assets

35,935

450,645

(57)

(106)

35,878450,539

Changes in items during period
Change in ownership interest of parent due totransactions with non-controlling interests(220)

Dividends of surplus(7,350)

Profit attributable to owners of parent

39,151

Purchase of treasury shares(60)

Disposal of treasury shares

78

Increase by merger of consolidated subsidiaryand non-consolidated subsidiary

78

Adjustment to retained earnings due to change
in US tax rate-

Net changes in items other than shareholders'equity(1,964)3(50)(1,284)(6,362)(9,659)684(8,974)

Total changes in items during period(1,964)3(50)(1,284)(6,362)(9,659)684

22,702

6,723

(0)

4,968

(21,413)(9,995)(19,716)

36,563473,241

Balance at end of period

Page 7 of 10

Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2019

Fiscal 2020

(April 1, 2018 throughMarch 31, 2019)(April 1, 2019 throughMarch 31, 2020)

Profit before income taxes

59,174

51,777

Depreciation

44,00848,863490

89(2,288)(2,427)

Cash flows from operating activities

Amortization of goodwill
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on valuation of investment securities
Decrease (increase) in net retirement benefit asset and liability
Increase (decrease) in provision for retirement benefits for directors
Increase (decrease) in provision for bonuses

326

222

(1,364)(1,172)

15

(14)

24

109

(185)

91

52

42

Interest and dividend income(1,860)(1,808)Interest expenses

4,068

3,876

Loss (gain) on sales of investment securities

(399)

(169)

Loss (gain) on disposal of non-current assets

3,678

4,825

Impairment loss

1,101

5,451

Decrease (increase) in trade receivables(2,728)20,800Decrease (increase) in inventories(4,207)(1,661)

Increase (decrease) in trade payables

9,577(16,151)

Other, net(1,218)(6,674)

Subtotal

108,266

106,069

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provisions

Interest and dividends received

2,844

2,321

Interest paid

(4,019)(3,890)

Income taxes paid

(9,808)(13,597)

Cash flows from operating activities

97,28390,902

Cash flows from investing activities
Decrease (increase) in time deposits

1,995

515

(64,520)(66,378)

Proceeds from sales of non-current assets

2,208

1,367

Purchase of other depreciated assets

(142)

(240)

Purchase of non-current assets

Proceeds from sales of other depreciated assets-

0

Purchase of investment securities

(43)

(539)

Proceeds from sales and redemption of investment securities
Proceeds from sales of shares of subsidiaries resulting in change in scope of
consolidation
Loan advances

1,132

393

1,308

-

(2,639)(3,240)

Collection of loans receivable

3,078

2,782

Other, net

(402)

(193)

(58,025)(65,534)

Cash flows from investing activities

Page 8 of 10

(Millions of yen)
Fiscal 2019

Fiscal 2020

(April 1, 2018 throughMarch 31, 2019)(April 1, 2019 throughMarch 31, 2020)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

1,509

200

Increase (decrease) in commercial papers

4,000

8,000

Proceeds from long-term borrowings

57,12744,663

Repayments of long-term borrowings(75,721)(56,077)

Proceeds from issuance of bonds

20,000-

Redemption of bonds(15,035)(10,000)

0

94

Proceeds from sales of treasury shares
Purchase of treasury shares(5,026)(22)

Dividends paid

(9,909)(7,350)

Dividends paid to non-controlling interests(1,565)(681)

Other, net(9,133)(8,262)

Cash flows from financing activities(33,753)(29,436)

(543)

(301)

Net increase (decrease) in cash and cash equivalents

4,960(4,369)Cash and cash equivalents at beginning of period

44,97650,084147

33

50,08445,748

Effect of exchange rate change on cash and cash equivalents

Increase in cash and cash equivalents resulting from merger
Cash and cash equivalents at end of period

Page 9 of 10

Consolidated Segment Information
Fiscal 2019 (April 1, 2018 through March 31, 2019)【Industry Segments】(Millions of yen)
Reportable Segments
CementBusiness

MineralResources
Business

Environmental
Business

Construction
Materials
Business

Total

Other

Total

Consolidated
Total

Adjustment

Net sales
Sales to outside
customers

636,385

59,40185,081

77,940858,808

57,263916,071-916,071

Inter-segment
sales
Total

10,092

24,860

7,611

4,245

46,80928,76575,575(75,575)-

646,477

84,262

92,69382,185905,618

86,028991,647(75,575)

916,071

Segment income

41,743

8,242

6,614

4,999

61,5994,658

66,257(244)

66,012【Geographic Segments】(Millions of yen)Japan

U.S.A.

Other

Total

Net sales

687,422

143,663

84,985916,071

Non-current
assets371,335

103,81345,790520,939

Fiscal 2020 (April 1, 2019 through March 31, 2020)【Industry Segments】(Millions of yen)
Reportable Segments
CementBusiness

MineralResources
Business

Environmental
Business

Construction
Materials
Business

Total

Other

Total

Consolidated
Total

Adjustment

Net sales
Sales to outside
customers

617,838

55,96576,281

77,035827,121

57,228884,350-

884,350

Inter-segment
sales
Total

10,57824,181

8,140

4,268

47,16825,802

72,971(72,971)-

628,416

80,14784,42281,303874,290

83,031

957,321(72,971)884,350

Segment income

36,526

7,179

7,707

4,537

55,951

5,327

61,279(270)

61,008【Geographic Segments】(Millions of yen)Japan

U.S.A.

Other

Total

Net sales

653,524

143,705

87,120884,350

Non-current
assets388,658

110,862

45,032544,553

Page 10 of 10