Summary of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Fiscal 2006 Ended March 31, 2006
May 16, 2006
Company:
Stock code:
URL:

Taiheiyo Cement Corporation5233
http://www.taiheiyo-cement.co.jp/

Fiscal 2005 : April 1, 2004-March 31,2005
Fiscal 2006 : April 1, 2005-March 31, 2006
Fiscal 2007 1H: April 1, 2006-September 30, 2006
Fiscal 2007 : April 1, 2006-March 31, 2007

The accompanying consolidated financial results are not intended to present the financial results in accordancewith accounting principles and practices generally accepted in countries and jurisdictions other than Japan.

1. FY3/06 consolidated results (April 1, 2005 – March 31, 2006)
All yen figures are rounded down to the nearest one million yen.
(1) Consolidated results of operations
Net Sales

Operating income

Millions of Yen%
3.9
–0.8

FY3/06
FY3/05

906,657
872,686

FY3/06
FY3/05

Net income
Millions of Yen%
9,101 –36.9
14,412 –12.7

Ordinary income

Millions of Yen%

Millions of Yen%

62,011
48,18528.7
7.4

49,792
38,26430.1
8.9

EPSYen9.63
15.33

Diluted EPS
Yen
9.29
14.80

(2) Consolidated financial position
FY3/06
FY3/05

Total assets
Millions of Yen
1,278,245
1,247,532

Shareholders’ equity
Millions of Yen
269,480
236,734

Equity ratio

Cash flows frominvesting activities
Millions of Yen–22,627
3,010

Cash flows fromfinancing activities
Millions of Yen–14,649–69,843

%
21.1
19.0

Equity per shareYen
288.01
253.26(3) Consolidated cash flows

FY3/06
FY3/05

Cash flows fromoperating activities
Millions of Yen
61,46054,299Cash and cash
equivalents at term-end
Millions of Yen
93,48967,473

2. FY3/07 consolidated earnings forecast (April 1, 2006 – March 31, 2007)

1H FY3/07

Sales
Millions of Yen
440,000

915,000
FY3/07
Reference: FY3/07 EPS forecast: ¥ 24.57

Ordinary income
Millions of Yen
17,500Net income
Millions of Yen
2,200

57,00023,000This 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
materially from this forecast due to various factors.

Page 1 of 8

Consolidated Balance Sheets(Unit: Millions of Yen)
ItemAssets
Current assets
Cash and time deposits
Notes and accounts receivable
Inventories
Deferred income taxes
Short-term loans
Other current assets
Allowance for doubtful accounts
Current assets
Fixed assets
A. Tangible fixed assets
Buildings and structures
Machinery, equipment
LandConstruction in progress
Other tangible fixed assets
Tangible fixed assets
B. Intangible fixed assets
Trade rights
Consolidation adjustments
Other intangible fixed assets
Intangible fixed assets
C. Investments and other assets
Investment securities
Long-term loans
Deferred income taxes
Other investments and assets
Allowance for doubtful accounts
Investments and other assets
Fixed assets
Total assets

FY3/06(As of 3/31/06)

FY3/05(As of 3/31/05)

98,891
197,455
73,995
4,245
16,353
14,827–3,546402,22273,364
190,071
67,811
3,592
16,89817,094–2,589366,243

25,527
7,383
6,183
652
–544
–2,266–956
35,979194,305
171,228
179,662
13,662
24,529583,388

201,052
165,920
202,639
13,20725,292
608,111–6,746
5,308–22,977455–762–24,722

14,262
5,843
27,48747,59213,016
6,955
27,08847,0601,246–1,112
399
532

180,110
6,205
15,71458,488–15,478
245,041
876,022
1,278,245

158,715
8,728
15,424
59,795–16,547
226,117881,289
1,247,532

21,394–2,523290–1,306
1,068
18,923–5,26630,712

ChangePage 2 of 8

(Unit: Millions of Yen)
Item
Liabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Bonds (due within one year)
Income taxes payable
Deferred income taxes
Bonus reserve
Other reserves
Other current liabilities
Current liabilitiesFixed liabilities
Bonds
Convertible bonds
Long-term borrowings
Deferred income taxes
Deferred income taxes from revaluation
excess
Accrued for retirement benefits
Accrued for retirement benefits todirectors and corporate auditors
Special repair reserve
Other fixed liabilities
Fixed liabilities
Total liabilities
Minority interests
Shareholders’ equity
Capital stock
Additional paid in capital
Retained earnings
Revaluation excess
Unrealized gain on other securities
Foreign currency translation adjustments
Treasury stock
Total shareholders’ equity
Total liabilities, minority interests andshareholders’ equity

FY3/06(As of 3/31/06)

FY3/05(As of 3/31/05)

119,987
328,742
61,754
12,952
5
6,362
629
63,495593,929

117,476
332,310
20,890
3,948
69
5,871
628
66,210547,404

2,510–3,56840,864
9,004
–64
491
1
–2,714
46,52453,05434,000181,904
21,00963,49034,000215,266
28,182–10,436––33,361–7,172

5,904

5,937

–32

33,31433,622

–307

2,313

2,304

9133
47,352378,988972,91735,847

141
50,580433,525
980,929
29,867–7–3,227–54,536–8,012
5,979

69,49959,515
105,973
4,785
28,1993,260–1,752
269,480

69,49958,605
101,337
4,855
19,885–14,725–2,723
236,734

–
910
4,635
–70
8,314
17,985970
32,745

1,278,245

1,247,532

30,712

ChangePage 3 of 8

Consolidated Statements of Income(Unit: Millions of Yen)
FY3/06
FY3/05
Change(4/1/05–3/31/06) (4/1/04–3/31/05)
906,657
872,686
33,970Sales

708,258

682,891

25,367

Selling, general and administrative expenses

136,386

141,610–5,223

Income from operation

62,011

48,185

13,825

4,306

5,346

–1,040

—

847

–847

IncomeCost of sales

ExpensesNon-operating income andexpenses

Operatingincome/loss

Item

Interest and dividends received
Equity in earnings of unconsolidated
subsidiaries and affiliates
Other non-operating income

4,259

4,141

118

Total

8,565

10,334–1,768

11,228

12,627–1,398

5,545

—

5,545

4,010

7,627

–3,617

20,784

20,254529

Interest expenses
Equity in losses of unconsolidated
subsidiaries and affiliates
Other non-operating expenses
Total

49,792

38,264

11,527

Gain on disposal of fixed assets

4,435

22,800–18,365

Gain on sale of investment securities
Gain on dilution of ownership in
affiliated companies
Other extraordinary gains

13,899

7,545

6,353

1,496

1,373

123

1,961

470

1,490

Total

21,79232,190–10,397

8,389

27,071–18,681

3,896

4,299

–403

129

2,477

–2,347

306

666

–359

Stock valuation loss

1,121

2,029

–908

Loss on Impairment of fixed assets
Special allowance to employees retired
under early retirement scheme
One-time amortization of consolidation
adjustments

33,435—33,435

263

739

476

949

—

949

Loss on disposal of fixed assets
Provision for allowance for doubtful
accounts
Liquidation of unconsolidated
subsidiaries and affiliates
Loss on sale of investment securities
LossesExtraordinary gains and losses

Gains

Ordinary income

Loss on closure of a cement plant
Business discontinuation costs
Other extraordinary losses
Total—

518–518—

6,898–6,898

3,621

926

2,694

52,11345,626

6,486

Net income before income taxes

19,471

24,828–5,356

Income taxes

23,226

9,316

13,910

Income tax adjustments–14,108891–15,000

Minority interest income

1,251207

1,044

Net income

9,101

14,412–5,311Page 4 of 8

Consolidated Statements of Retained Earnings(Unit: Millions of Yen)
Item
Additional paid in capital
Additional paid in capital at beginning ofIterm
II Increase in additional paid in capitalGain on disposal of treasury stock
IV Additional paid in capital at end of term
Retained earnings
I Retained earnings at beginning of term
II Increase in retained earnings
Net income
Increase resulting from merger ofconsolidated subsidiaries
Reversal of land revaluation difference
III Decrease in retained earnings
Dividends
Bonuses to directors and corporate auditors
Decrease due to increase in consolidated
subsidiaries
Decrease due to decrease in companies
subject to equity method
Loss on cancellation of combined sharesthrough merger
Ⅳ Retains earnings at end of term

FY3/06(4/1/05-3/31/06)

FY3/05(4/1/04-3/31/05)

58,60558,489910
910

Change

115

115
115

794
794

59,51558,605910

101,337
9,171

88,76914,932

12,568–5,7609,101

14,412–5,311

–2

–2

70

517
4,536

–4462,364

2,171

2,330
48

2,314
50

16–1

129

–

129

1,843

–

1,843

182

–

182

105,973

101,337

4,635

Page 5 of 8

Consolidated Statements of Cash Flows
TermItemI
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of difference between equity in net assets ofconsolidated subsidiaries and affiliates
Equity in gains of unconsolidated subsidiaries andaffiliates
Equity in losses of unconsolidated subsidiaries andaffiliates
Stock valuation loss
One-time amortization of consolidation adjustments
Decrease in accrued retirement benefits
Increase/decrease in accrued retirement benefits todirectors and corporate auditors
Increase in bonus reserve
Increase/decrease in allowance for doubtful accounts
Increase/decrease in other reserves
Interest and dividends received
Interest expenses
Gain on sale of investment securities
Loss on sale of investment securities
Gain on dilution of ownership in affiliated companies
Liquidation of unconsolidated subsidiaries and affiliates
Gain on disposal of fixed assets
Loss on disposal of fixed assets
Loss on impairment of fixed assets
Increase/decrease in notes and accounts receivable
Increase/decrease in inventories
Decrease in notes and accounts payable
Payment of bonuses to directors and corporate auditors
OtherSubtotal
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities(Unit: Millions of Yen)
FY3/05
Change4/1/04 –3/31/05

FY3/06
4/1/05 –3/31/06
19,471
38,61024,82840,339–5,356–1,72969

1,177–1,107

—

–847

847

5,545

—

5,545

1,121
949
–2,6132,029—–1,905

–908
949
–708

9–766

775

371
–90
–6
–4,306
11,228–13,899306–1,496129–4,4358,389
33,435–6,335–1,2573,309–58–8,16880,280
4,557–10,808–12,569407
647
49–5,346
12,627–7,545666–1,373
2,477–22,800
27,071—–2,821–2,423
1,691
–60
6,783
74,908
7,083–12,887–14,805

–36
–738
–56
1,040
–1,398–6,353–359–123–2,34718,365–18,681
33,435–3,514
1,165
1,618
1
–14,952
5,371–2,5262,079
2,235

61,46054,2997,160

Page 6 of 8TermItem
II Cash flows from investing activities
Increase/decrease in time deposits
Purchase of property, plant and equipment
Proceeds from sale of fixed assets
Payments for purchase of other depreciable assets
Proceeds from sale of other depreciable assets
Payments for purchase of investment securities
Proceeds from sale of investment securities
Long-term loans madeCollections of long-term loans receivable
Other
Net cash provided by/used in investing activities

FY3/06
4/1/05 –3/31/06

FY3/05
4/1/04 –3/31/05

Change694–41,898
16,334–871
1–14,003
14,660–4,640
5,460
1,636

–636
–33,508
26,827–544
1–934
11,064–11,630
10,3572,013

1,330–8,390–10,493–327–0–13,068
3,595
6,990–4,896–377–22,627

3,010–25,638–23,70254,870–79,029
51,350–20,922
2,544
3,210
–256
–2,330–383–14,649–28,21339,720–72,720
23,100–30,600
1,542
240
–193
–2,314–404–69,843

4,510
15,150–6,30828,250
9,678
1,002
2,969
–63
–16
21
55,194

IV Effect of exchange rate changes on cash and cash equivalents
V Increase/decrease in cash and cash equivalents
VI Cash and cash equivalents at beginning of term
VII Cash and cash equivalents at beginning of term resulting fromchange in scope of consolidation
VIII Increase in cash and cash equivalents at beginning of term
resulting from merger of consolidated subsidiaries

1,758
25,941
67,473

96–12,436
80,534

1,661
38,377–13,061

–203

75

–279

279

–700

979

IX Cash and cash equivalents at end of term

93,48967,47326,016

III Cash flows from financing activities
Net decrease in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Issue of shares
Disposal of treasury stock
Repayment of treasury stocks
Cash dividend payments by parent company
Cash dividend payments to minority shareholders
Net cash used in financing activities

Page 7 of 8

Segment Information
Segment information(Unit: Millions of Yen)
MineralCementEnvironmental
Resources
Business
Business
Business
Sales and operating
incomeSales(1) Sales to528,452
outsidecustomers(2) Intersegment
13,768sales andtransfers
Total
542,220
Operating496,203
expensesOperating
46,017
incomeFY3/06 (4/1/05 – 3/31/06)
Construction Ceramics &Materials Electronics Other
Business
Business

Total

Eliminations
Consolidated
or corporate
total
assets81,32061,46596,69465,47973,244

906,657(—)

906,657

21,575

5,360

7,714

3

43,36091,783(91,783)—

102,896

66,826

104,408

65,483 116,604

998,440(91,783)

906,657

99,62662,565102,387

65,236 110,301

936,320(91,674)

844,645

3,270

4,260

2,021

62,120(108)

62,011247

6,302

Overseas sales

I
Overseas sales
II Consolidated salesIII Ratio of overseas sales to consolidated sales

North America
100,499—
11.1%(Unit: Millions of Yen)
FY3/06 (4/1/05 – 3/31/06)
Asia
OtherTotal
86,675
14,436201,611——906,657
9.6%
1.6%
22.2%

Page 8 of 8