January 30, 2015
Tokuyama Corporation
Notice concerning the Causes behind Posting an Impairment LossTokuyama Corporation (hereafter referred to as “Tokuyama” or “the Company”) announced detailsof its decision to post an impairment loss in connection with the polycrystalline silicon first plant(PS-1) of its consolidated subsidiary Tokuyama Malaysia Sdn. Bhd., located in Sarawak, Malaysia, onOctober 31, 2014. As a result, an investigative committee mainly comprising the Audit &Supervisory Board (including external auditors) was established the same day. This committee thendelivered a report on its investigation of the relevant facts leading up to the Company’s decision as
well as an analysis of the causes that led to the posting of an impairment loss. In addition toreviewing this report, Tokuyama conducted a further investigation and analysis. Brief details arepresented as follows.

By undertaking an analysis of the causes behind the posting of an impairment loss, this report also
serves to ensure that the Company carries out all necessary improvement and reform measures toprevent a recurrence of this incident. At the same time, the report provides the impetus throughwhich Tokuyama will work diligently to restore its credibility and to maintain its presence as a going
concern and a company that contributes to society going forward.

1. Based on polycrystalline silicon market conditions at the time the plan was first proposed, theCompany factored in the risk of a future decline in prices and decided to invest in a businessplan that was disproportionately large when compared with its business scale. Thereafter,
however, fluctuations in market conditions far exceeded expectations highlighting deficiencies in
the Company’s deliberations to offset risk with respect to its investment amount.

2. Moving forward and with the emergence of each issue resulting from shifts in its operating
environment, Tokuyama took steps to reconsider the commercial viability of the plan as well aschanges to its strategy and other factors. Despite these endeavors, the Company was unable toimplement the necessary changes and revisions to offset deterioration in conditions.

3. Despite considering all technical aspects as well as associated risks with respect to such key
aspects as the selection of critical equipment, and while allocating an appropriate amount oftime and human resources to match the substantial scale of the business plans, the Company’sefforts were insufficient to ensure that the plan would be brought to fruition. This reflected theCompany’s focus on carrying out the business in a timely manner as well as cost competitiveness.

Moreover, and when considering the selection of critical equipment, Tokuyama believed that its
production and operating technologies and know-how were sufficient to ensure high-purity
production even in the event of certain difficulties. Coupled with the focus on speed, theCompany’s considerations were lacking at that time. This deficiency in initial considerations withregard to such factors as the aforementioned selection of critical equipment was a major factor
in the subsequent problems and issues that arose at the plant.

4. At the same time, the distribution of information to certain parts of the organization waslacking when management undertook decisions relating to these issues. As a result, the ability ofthe organization of the project to introduce multi-faceted and objectives as inherently intended
and to provide support as and when required failed to fully function.

5. With respect to the introduction of human resources and efforts to promote the project, thestructure of the organization, which entailed top management assuming responsibility, had somepositive effect. However, the result was a lack of appropriate changes and revisions to thesubsequent deterioration in operating conditions and each issue.

Looking ahead, Tokuyama will put in place and carry out improvement measures.

There are no indications of any breach from a compliance perspective as a result of theinvestigation by the committee.

Contact concerning this issue:
Corporate Communications & Investor Relations Dept.,
Tokuyama Corporation
Phone: +81-3-6205-4832