Outline of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Second Quarter of Fiscal 2009 ended March 31, 2009
November 11, 2008
Company:
Stock code:
URL:

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

Fiscal 2008 1H:
Fiscal 2008:
Fiscal 2009 1H:
Fiscal 2009:

April 1, 2007-September 30,2007
April 1, 2007-March 31, 2008
April 1, 2008-September 30, 2008
April 1, 2008-March 31, 2009

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.
(All yen figures are rounded down to the nearest one million yen.)

1. Consolidated Financial Results for the First Half of Fiscal 2009 (April 1, 2008 through September 30, 2008)(1) Operating Results
1H FY3/09
1H FY3/08

Net Sales
Millions of Yen
429,069
459,356

%
–
1.0

EPS

Ordinary income
Net income
Millions of Yen% Millions of Yen-3,379–-7,323
21,034 -17.2
8,542

%
–
7.9

Diluted EPS
Yen
–
8.42

Yen
-7.80
9.11

1H FY3/09
1H FY3/08

Operating income
Millions of Yen
%
4,507
–
25,826 -15.2(2) Financial Position
Total assets
Millions of Yen
1,246,168
1,218,033

1H FY3/09
FY3/08

Total net assets
Millions of Yen
288,419
327,589

Equity ratio

Equity per shareYen
267.19308.82

%
20.1
23.8

2. Dividends
1Q
FY3/08
FY3/09
FY3/09(forecast)

Dividend per share
3Q

2Q

4Q

Total

Yen

Yen

Yen

Yen

Yen

—
—
——

2.00
2.00
——

—
——
—

3.00
——
—

5.00
——
—

*The company is foregoing a decision on FY 2009 year-end dividend due to the uncertain outlook and will makeanother announcement when the earnings situation becomes clear.
3. Consolidated Results Forecast for the Fiscal Year Ending March 31, 2009
Net sales
Millions of Yen

FY3/09910,000

Operating income%–1.9

Millions of Yen

18,000%–65.0

Ordinary income
Millions of Yen

9,000

%
–78.3

Net income
Millions of Yen–7,000

EPS
%
—

Yen

–7.46

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
materially from this forecast due to various factors.

Page 1 of 10

Consolidated Balance Sheets
All yen figures are rounded down to the nearest one million yen.

Item
AssetsCurrent assets
Cash and time deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
A. Property, plant and equipment
Buildings and structures, net
Machinery, equipment, net
Land
Other, net
B. Intangible assets
Goodwill
Other
C. Investments and other assets
Investments in securities
Other
Allowance for doubtful accounts
Total non-current assets
Total assets

1H FY3/09(As of 9/30/08)(Millions of Yen)
FY3/08(As of 3/31/08)

61,417
190,730
40,668
16,77548,58040,616–1,456397,333

64,465
189,559
35,744
8,688
41,58639,228–1,425
377,848

179,840
166,220
175,61355,725
577,400

188,411
172,317
166,092
44,228571,049

27,54638,983
66,52922,67927,82050,499137,81077,705–10,610
204,905
848,835
1,246,168

152,647
77,109–11,120
218,635
840,184
1,218,033

Page 2 of 10

All yen figures are rounded down to the nearest one million yen.

Item
Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable
Commercial papers
Current portion of bonds
Accrued income taxes
Reserve for bonuses
Reserve for directors’ bonuses
Other reserves
Other
Total current liabilities
Non-current liabilities
Bonds payable
Bonds with subscription rights to shares
Long-term loans payable
Reserve for retirement benefits
Reserve for directors’ retirement benefits
Reserve for loss on business of subsidiaries andaffiliates
Reserve for special repairs
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Accumulated other comprehensive losses
Total valuation and translation adjustments
Minority interests
Net assets
Liabilities and net assets

1H FY3/09(As of 9/30/08)(Millions of Yen)
FY3/08(As of 3/31/08)

105,606
299,184
46,000
722
3,673
5,820
17
817
66,836528,680

109,114284,104
19,000
1,227
4,036
7,046
53
787
63,338
488,710

72,775
34,152
206,176
34,614909

72,997
34,167
178,740
35,319
1,453

138

138

859
79,442429,068
957,749315
78,600401,733
890,443

69,49960,756
119,678–1,716248,216

69,49960,756
142,923–1,689271,489

9,724

10,352–24
4,727–10,077–1,826
2,523
37,679288,419
1,246,168

–45
4,594
5,469
–1,971
18,39937,701
327,589
1,218,033

Page 3 of 10

Consolidated Statements of Income
All yen figures are rounded down to the nearest one million yen.

Item
Net sales(Millions of Yen)
1H FY3/09(4/1/08–
9/30/08)
429,069

Cost of sales

352,140

Gross profit

76,929Selling, general and administrative expenses

72,421

Operating income

4,507

Non-operating income
Interest income

591

Dividends income

841

Other
Total non-operating income

1,935
3,368

Non-operating expenses
Interest expenses

5,436

Equity in losses of affiliates

3,922

Other

1,897

Total non-operating expenses
Ordinary loss

11,256–3,379Extraordinary income
Gain on disposal of non-current assets

1,584

Gain on sales of investment securities

657

Other
Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets

127
2,368
955

Loss on impairment of fixed assets

893

Other

984

Total extraordinary loss

2,833

Loss before income taxes–3,844

Income taxes-current

3,307

Income taxes-differed–759

Total income taxes

2,548

Minority interests in income

931

Net loss–7,323

Page 4 of 10

Consolidated Statements of Cash FlowsAll yen figures are rounded down to the nearest one million yen.

Item
I

II

(Millions of Yen)
1H FY3/09
4/1/08 –9/30/08

Cash flows from operating activities
Loss before income taxes
Depreciation and amortization
Amortization of goodwill
Equity in losses of affiliates
Loss on valuation of investment securities
Decrease in reserve for retirement benefits
Decrease in reserve for directors’ retirement benefits
Decrease in reserve for bonuses
Decrease in reserve for directors’ bonuses
Decrease in allowance for doubtful accounts
Increase in other reserves
Interest and dividends income received
Interest expenses paid
Gain on sales and valuation of investment securities
Loss on liquidation of subsidiaries and affiliates
Gain on disposal of non-current assets
Loss on impairment of fixed assets
Decrease in notes and accounts receivable-trade
Increase in inventories
Decrease in notes and accounts payable-trade
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid

–3,844
24,610
1,351
3,922
241
–1,129–544–1,167–36–283
435–1,433
5,436
–594
44
–628
893
365
–20,850–5,257–5,832–4,301
1,424–5,771–3,145

Net cash provided by operating activities–11,794

Cash flows from investing activities
Decrease in time deposits
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments for acquisition of newly consolidated
subsidiaries
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

1,315–23,649
3,381–4,2881,720–48,055–2,6001,242
1,902–69,031

III Cash flows from financing activities
Increase in short-term loans payable
Increase in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from issuance of common stock
Proceeds from sales of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by financing activities

27,72327,00061,592–35,051
–766
2,157
22
–2,822–647–103
79,103

IV Effect of exchange rate changes on cash and cash equivalents
V Decrease in cash and cash equivalents
VI Cash and cash equivalents at beginning of the fiscal year

–1,094–2,81660,051

VII Increase in cash and cash equivalents resulting from change ofscope of consolidation

718

VIII Cash and cash equivalents at end of the period

57,953

Page 5 of 10

Segment Information
All yen figures are rounded down to the nearest one million yen.

[Industry Segments](Millions of Yen)

MineralCementEnvironmental
Resources
Business
Business
Business
Sales and operating
incomeSales(1) Sales to259,004
outsidecustomers(2) Intersegment
6,566
sales andtransfers
Total
265,570
Operating
1,761
income/loss

1H FY3/09 (4/1/08 – 9/30/08)
Construction Ceramics &Materials Electronics Other
Business
Business

Eliminations
Consolidated
or corporate
total
assetsTotal

41,73830,72345,322

17,07335,207429,069—

429,069

10,182

3,601

3,862

35

21,02145,269(45,269)—

51,92034,32549,184

17,10856,229474,339(45,269)

429,069

531

1,770

–524

–658

1,749

4,630

(122)

4,507

All yen figures are rounded down to the nearest one million yen.

[Geographic segments](Millions of Yen)
1H FY3/09 (4/1/08 – 9/30/08)

Japan
Sales and operating
incomeSales(1) Sales tooutsidecustomers(2) Intersegment
sales andtransfers
Total
Operatingincome/loss

North America

Asia

Other

Eliminations
Consolidated
or corporate
total
assetsTotal

347,263

48,49731,1932,115

429,069—

429,069

2,019

—

2,892

0

4,911

(4,911)—

349,282

48,49734,0852,116

433,981(4,911)

429,069

–273

1,845

3,153

293

5,018

(510)

4,507

Overseas sales
All yen figures are rounded down to the nearest one million yen.

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

North America
48,640—
11.3%(Millions of Yen)
1H FY3/09 (4/1/08 – 9/30/08)
Asia
Other
Total
32,503
9,285
90,429——429,069
7.6%
2.2%
21.1%

Page 6 of 10

Reference
1H FY3/08 (4/1/2007 – 9/30/2007) Consolidated Financial Statement
Consolidated Statement of Income
All yen figures are rounded down to the nearest one million yen.

(Unit: Millions of Yen)
1H FY3/08(4/1/07–9/30/07)
459,356

Sales

363,852

Selling, general and administrative expenses

69,678

Income from operation

25,826

IncomeCost of sales

ExpensesNon-operating income andexpenses

Operatingincome/loss

Item

Interest and dividends received

1,716

Other non-operating income

3,104

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

LossesGains

Ordinary income

Extraordinary gains and losses(1) 1H FY3/08

4,820
5,540
2,572
1,498
9,611
21,034Gain on disposal of fixed assets

994

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

340

Total

1,419

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

1,810

Stock valuation loss
Loss on Impairment of fixed assets
Loss of compensation on businessretreatOther extraordinary losses
Total

20
63

19
98
13
115
2,383
715
194
5,350

Net income before income taxes

17,103

Income taxes

9,843

Income taxes from previous year

–2,252

Income tax adjustments–501

Minority interest income

1,471

Net income

8,542

Page 7 of 10

(2) 1H FY3/08

Consolidated Statements of Cash FlowsAll yen figures are rounded down to the nearest one million yen.

(Unit: Millions of Yen)
Term 1H FY3/08
4/1/07 –9/30/07

Item
I
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Equity in losses of unconsolidated subsidiaries
and affiliates
Stock valuation loss
Decrease in accrued retirement benefits
Increase/decrease in accrued retirement benefits
to directors and corporate auditors
Increase/decrease in bonus reserve
Increase in bonus reserve for directors andcorporate auditors
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 affiliatedcompanies
Liquidation of unconsolidated subsidiaries andaffiliates
Gain on disposal of fixed assets
Loss on disposal of fixed assets
Loss on impairment of fixed assets
Increase in notes and accounts receivable
Increase in inventories
Increase/decrease in notes and accounts payable
Payment of bonuses to directors and corporate
auditors
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refunded
Net cash provided by operating activities
II

Cash flows from investing activities
Increase in time deposits
Purchase of property, plant and equipment
Proceeds from sale of fixed assets
Payments for purchase of other depreciable
assetsProceeds 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 used in investing activities

17,103
21,245
528
2,572
115
–983
–73
–248
–56
–1,21698–1,716
5,540
–340
13
–20
98
–994
1,810
2,383
–2,157–6,366251–865738,236
1,686–5,607–8,7872,885
28,414–148–24,645
3,167
–197
23
–454
909
–928
1,169
149
–20,956

Page 8 of 10

Term
Item
III Cash flows from financing activities
Net decrease in short-term borrowings
Net increase in commercial paper
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

1H FY3/08
4/1/07 –9/30/07–6,361
3,000
28,845–32,536
575
–890
1,470
1,041
–149
–1,874–526–7,407

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
from change in scope of consolidation

938
65,657

VIII Cash and cash equivalents at end of term

66,640886

44(3) 1H FY3/08 Segment Information
All yen figures are rounded down to the nearest one million yen.

a. Industry segments(Unit: Millions of Yen)

MineralEnvironmental
CementResources
Business
Business
Business
Sales and operating
incomeSales(1) Sales to279,438
outsidecustomers(2) Intersegment
7,682
sales andtransfers
Total
287,121
Operating
267,274
expenses
Operating
19,846
income/loss

1H FY3/08 (4/1/07 – 9/30/07)
Construction Ceramics &Materials Electronics Other
Business
Business

Total

Eliminations
Consolidated
or corporate
total
assets41,38528,92342,941

31,53335,133459,356–459,356

10,491

3,026

3,986

3

22,88248,071(48,071)–

51,876

31,94946,927

31,53758,015507,428(48,071)459,356

49,98929,95647,186

31,66655,236481,309(47,778)433,530

1,887

1,992

–258

–128

2,779

26,118(292)

25,826

Page 9 of 10

All yen figures are rounded down to the nearest one million yen.

b. Geographic segments(Unit: Millions of Yen)
1H FY3/09 (4/1/08 – 9/30/08)

Japan
Sales and operating
incomeSales(1) Sales tooutsidecustomers(2) Intersegment
sales andtransfers
Total
Operatingexpenses
Operatingincome/loss

North America

Asia

Other

Eliminations
Consolidated
or corporate
total
assetsTotal

353,538

61,67839,423

4,716

459,356—459,356

1,595

21

3,956

0

5,572

(5,572)—355,133

61,70043,3794,716

464,929(5,572)

459,356

342,771

51,90039,122

4,743

438,537(5,006)

433,530

12,362

9,800

4,257

–26

26,392(566)

25,826All yen figures are rounded down to the nearest one million yen.

c. Overseas sales

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

North America
62,867—
13.7%(Unit: Millions of Yen)
1H FY3/09 (4/1/08 – 9/30/08)
Asia
Other
44,773
10,291
—
—
9.7%
2.2%

Total
117,932
459,356
25.7%

Page 10 of 10