January 29, 2016
Company name: Tokuyama Corporation
Representative name: Hiroshi Yokota,
President and Representative Director(Code No. 4043, First Section TSE)
Contact: Taro Kobayashi, General Manager,
Corporate Communications & Investor Relations Dept.
TEL: +81-3-6205-4832

Notice concerning the Posting of an Extraordinary Loss, Revision of Performance Forecasts,
and the Return of Executive Compensation

Tokuyama Corporation (hereinafter referred to as “Tokuyama” or “the Company”) today announced detailsof its decision to post an extraordinary loss in accordance with a resolution of the Board of Directors at ameeting held on January 29, 2016.
In addition, the Company has revised its performance forecasts for full fiscal 2015 (April 1, 2015 to March 31,2016), announced on October 30, 2015, as described below.
Brief details of the aforementioned are presented as follows.
1. Extraordinary Loss
(1) Decision to post an extraordinary loss
Tokuyama recognized an impairment loss of ¥123,486 million in connection with the polycrystalline siliconplant of its consolidated subsidiary Tokuyama Malaysia Sdn. Bhd., located in Sarawak, Malaysia, in line with areview of the Company’s business plan. Taking this into consideration, the Company decided to record thisimpairment loss as an extraordinary loss during the third quarter of the fiscal year ending March 31, 2016.
(2) Background leading up to the posting of the impairment loss
Tokuyama Malaysia has undertaken the production of solar-grade polycrystalline silicon at its polycrystalline
silicon plant since operations commenced in October 2014. However, against the backdrop of the continued
marked decline in selling prices as a result of the worldwide supply glut, future price forecasts are projected tofall substantially below the Company’s business plan.
Taking into consideration the downturn in polycrystalline silicon market conditions, which has triggered adeterioration in the business environment, together with the conditions of plant operation following periodic
maintenance at Tokuyama Malaysia’s polycrystalline silicon plant conducted from October to November 2015,
steps were taken to review the medium- to long-term business plan of Tokuyama Malaysia and to reexamine
the likelihood of recouping the Company’s investment going forward. As a result, Tokuyama has decided topost the aforementioned extraordinary loss.

2. Revision of Performance Forecasts for Fiscal 2015 (April 1, 2015 to March 31, 2016)(1) Non-consolidated(Unit: Millions of yen)
Ordinaryincome

Net sales
Previous forecast : (A)(Oct. 30, 2015)
Newly revised forecast :(B)Change: (B)－(A)Rate of change (%)[Reference]
Fiscal 2014

Basic earnings (loss)
per share (yen)Profit (loss)

185,000

8,000

8,500

24.44

185,000

22,000(104,000)(298.97)0

14,000(112,500)

－－

175.0

－

－

184,043

18,665(62,950)(180.96)(2) Consolidated(Unit: Millions of yen)
Operatingincome

Net sales
Previous forecast : (A)(Oct. 30, 2015)
Newly revised forecast :(B)Change: (B)－(A)Rate of change (%)[Reference]
Fiscal 2014

Ordinary
incomeProfit (loss)
attributableto owners ofparent

Basic earnings(loss) per
share (yen)306,000

20,00014,00014,00040.25

306,000

20,00015,000(103,000)(296.10)

00

1,000

(117,000)

－－－

7.1－

－

302,085

19,53012,920(65,349)(187.85)(3) Reasons for the revision
With regard to the non-consolidated performance forecast for the full fiscal year ending March 31, 2016, net
sales are expected to be level with the previous forecast.
Ordinary income is expected to exceed the previous forecast. This is attributable to the posting of allowance
for investment loss on Tokuyama Malaysia Sdn. Bhd., which was to be recorded as a non-operating expense,
as a loss on valuation of stocks of subsidiaries and affiliates in the extraordinary losses section.
Profit/loss is expected to be substantially worse than the previous forecast, due mainly to the posting of theaforementioned extraordinary loss. As a result, the Company is projecting a loss for the fiscal year underreview.
With regard to the consolidated performance forecast for the full fiscal year ending March 31, 2016, net sales,
operating income, and ordinary income are expected to be about level with the previous forecasts.
Profit/loss attributable to owners of parent is expected to be substantially worse than the previous forecast,due mainly to the posting of the aforementioned extraordinary loss. As a result, the Tokuyama Group isprojecting a loss for the fiscal year under review.

3. Decision to Forego a Portion of the Compensation Payable to Executives
Tokuyama takes most seriously the posting of an extraordinary loss of ¥123,486 million in connection withthe polycrystalline silicon plant of its consolidated subsidiary Tokuyama Malaysia Sdn. Bhd. for the third
quarter of the fiscal year under review. Accordingly, the Company executives have decided to voluntarily
waive (return) a portion of their compensation until June 2016 as follows.

Details of the decision by executives to voluntarily waive (return) a portion of their compensation:
Chairman, President
Voluntarily waive (return) 50% of their annual compensation
Other executive officers and deputy executive officers
Voluntarily waive (return) 30% of their annual compensation(Note) The performance forecasts 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 berational, and may be substantially different from the actual performance because of various factors that may
arise from now on.