Outline of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Second Quarter of Fiscal 2020 ended March 31, 2020
November 12, 2019
Company:
Stock code:
URL:

Taiheiyo Cement Corporation5233
https://www.taiheiyo-cement.co.jp/english/index.html

Fiscal 2019 2Q:
Fiscal 2019:
Fiscal 2020 2Q:
Fiscal 2020:

April 1, 2018- September 30, 2018
April 1, 2018- March 31, 2019
April 1, 2019- September 30, 2019
April 1, 2019- March 31, 2020

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 Second Quarter of Fiscal 2020 (April 1, 2019 through September 30, 2019)(1) Operating Results(% of change from previous second quarter)
Net Sales

Operating income

Profit attributable toOwners of parent

Ordinary income

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

2Q FY3/20

431,389(1.7)

22,463(18.0)

22,470(17.1)

16,202(6.6)

2Q FY3/19438,700

4.0

27,384(0.2)

27,107(3.4)

17,3382.4*Comprehensive income : Fiscal 2020 2Q 12,283 (-19.7%)

EPS

Fiscal 2019 2Q 15,288 (+13.1%)

Diluted EPS
Yen

Yen

2Q FY3/20

132.38–2Q FY3/19

140.11–

Total assets

Total net assets

Millions of Yen

Millions of Yen%

2Q FY3/20

1,016,058

458,632

41.6

FY3/191,034,428

450,64540.1(2) Financial Position*Equity : Fiscal 2020 2Q

422,898

Equity ratio

Fiscal 2019 414,709

2. Dividends
Dividend per share
1Q

2Q

3Q

4Q

TotalYenYenYenYenYen

FY3/19—50.00

—

30.00

80.00

FY3/20—30.00
—

30.00

60.00

FY3/20(forecast)*The dividend per share of the Second Quarter of Fiscal 2019 ended March 31, 2019 includes an ordinary dividend of 30.00 yen andcommemorative dividend of 20.00 yen.

3. Consolidated Results Forecast for the Fiscal 2020 (April 1, 2019 through March 31, 2020)(% of change from the corresponding period of the previous year)
Net sales
Millions of Yen

FY3/20910,000

Operating income%(0.7)

Millions of Yen

64,000%(3.0)

Ordinary income%62,000 (3.6)

Millions of Yen

Profit attributable toOwners of parent
Millions of Yen%

42,000(3.3)

EPSYen343.16*This forecast is based on the information available at the date of publication of this material and assumptions at the samedate with 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
All yen figures are rounded down to the nearest one million yen.

Item

FY3/19(As of 3/31/19)(Millions of Yen)
2Q FY3/20(As of 9/30/19)

AssetsCurrent assets
Cash and deposits

56,561

48,629Notes and accounts receivable-trade180,535

158,268

Electronically recorded monetary claims-operating

12,99813,071

Merchandise and finished goods

31,13831,593Work in process

2,268

2,429

Raw materials and supplies

43,31444,290Other

15,135

15,908

Allowance for doubtful accounts

(646)

(605)

Total current assets

341,307

313,585

Buildings and structures, net

135,653

133,490

Machinery, equipment, and vehicles, net

134,649

133,219

Land

157,638

157,680

Other, net

92,998106,237

Total property, plant and equipment

520,939

530,627

Non-current assets
A. Property, plant and equipment

B. Intangible assets
Goodwill

321

247

Other

30,55329,531

Total intangible assets

30,87529,778Investment securities

83,692

83,394Retirement benefit assets

17,807

18,298

Other

47,23847,772

C. Investments and other assets

Allowance for doubtful accounts(7,432)(7,397)

Total investments and other assets

141,306

142,067

693,120702,473

1,034,428

1,016,058

Total non-current assets
Total assets

Page 2 of 8

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

FY3/19(As of 3/31/19)(Millions of Yen)
2Q FY3/20(As of 9/30/19)

Notes and accounts payable-trade96,27580,313

Electronically recorded obligations-operating

8,716

4,937

Short-term borrowings

135,381130,429

Commercial papers

4,000

21,000Current portion of bonds

10,000-

Income taxes payable

8,376

5,666

Provision for bonuses

6,046

6,134

Item
Liabilities
Current liabilities

Other provisions

220

215

80,373

77,940349,390326,635

Bonds payable

30,00030,000Long-term borrowings

100,233

95,089Retirement benefit liabilities

24,206

23,627

Provision for retirement benefits for directors

535

467

Provision for special repairs

75101

Other
Total current liabilities
Non-current liabilities

Other provisions

757

765

Asset retirement obligations

7,619

7,682

Other

70,96473,057234,392

230,789583,783

557,425

86,174

86,174

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

60,40860,419Retained earnings

294,265

306,746

Treasury shares(16,081)(16,092)

424,767

437,246

8,688

7,949

(3)

(0)

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment

5,019

5,003

(20,128)(23,935)

Accumulated remeasurements of defined benefit plans(3,632)(3,364)

Total accumulated other comprehensive income(10,057)(14,347)

Non-controlling interests

35,93535,733

Total net assets

450,645458,632

1,034,428

1,016,058Total liabilities and net assets

Page 3 of 8Consolidated Statements of Income
All yen figures are rounded down to the nearest one million yen.

2Q FY3/19(4/1/189/30/18)
438,700(Millions of Yen)
2Q FY3/20(4/1/199/30/19)
431,389

Cost of sales

342,391

342,745

Gross profit

96,30988,643

Selling, general and administrative expenses

68,924

66,179Operating income

27,384

22,463

Interest income

270243

Dividend income

731

819

Share of profit of entities accounted for using equity method

1,297

1,503

Other

1,276

1,330

3,575

3,896

Interest expenses

1,953

2,023

Other

1,899

1,866

ItemNet sales

Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

3,852

3,889

27,10722,470Gain on disposal of non-current assets

374

547

Gain on sales of investment securities

4678

Compensation income-2,730

Other

56

33

478

3,390

1,034

1,811

Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Other
Total extraordinary losses
Income before income taxes and non-controlling interests

669

316

1,704

2,127

25,881

23,733

Income taxes

7,484

6,609

Profit18,397

17,124

Profit attributable to non-controlling interests

1,058

922

Profit attributable to owners of parent

17,338

16,202

Page 4 of 8Consolidated Statements of Comprehensive Income
All yen figures are rounded down to the nearest one million yen.

2Q FY3/19(4/1/189/30/18)
18,397(Millions of Yen)
2Q FY3/20(4/1/199/30/19)
17,124

1,470(668)(0)

2Foreign currency translation adjustment(4,691)(4,251)Remeasurements of defined benefit plans118261

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

(5)

(185)

(3,109)(4,840)15,28812,283

14,79911,928488

355

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

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to :Owners of parent
Non-controlling interests

Page 5 of 8

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

(Millions of Yen)
2Q FY3/20(4/1/199/30/19)

2Q FY3/19(4/1/189/30/18)
Cash flows from operating activities
Income before income taxes and non-controlling interests

25,881

23,733

Depreciation

21,072

22,642447

43(1,297)(1,503)293

23(118)

(834)

(48)

(68)

98

85

(203)

(38)

1229

Interest and dividend income(1,001)(1,062)

Interest expenses

1,953

2,023

Loss(gain)on sales of investment securities

81(78)

Loss(gain)on disposal of non-current assets

659

1,263

Decrease(increase) in trade receivables

313

21,274

Amortization of goodwill
Share of loss(profit) of entities accounted for using equity
methodLoss(gain) on valuation of short-term and long-term
investment securities
Decrease(increase) in net retirement benefit asset andliability
Increase(decrease) in provision for retirement benefits for
directors (and other officers)
Increase(decrease) in provision for bonuses
Increase(decrease) in allowance for doubtful accounts
Increase(decrease) in other provisions

Decrease(increase) in inventories(4,054)(3,422)

Increase(decrease) in trade payables

2,681(19,444)

Other, net

3,743
50,515137
44,804Subtotal
Interest and dividends received

1,745

1,592

Interest paid

(2,118)(2,121)

Income taxes paid

(6,056)(8,709)44,08535,56661(135)

Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease(increase) in time deposits
Purchase of non-current assets(33,928)(34,094)

Proceeds from sales of non-current assets

628

874

Purchase of investment securities

(108)

(78)

Proceeds from sales of investment securities

191245

Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation

1,308

-

Loan advances(1,314)(1,244)

Collection of loans receivable

1,445

1,417

Other, net

(401)

(162)

(32,117)(33,178)

Net cash provided by (used in) investing activities

Page 6 of 8Cash flows from financing activities
Net increase (decrease) in short-term borrowings

6,342

4,151

Increase (decrease) in commercial papers

33,00017,000

Proceeds from long-term borrowings

11,615

16,290

Repayments of long-term borrowings(35,861)(29,507)

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

Purchase of treasury shares(13)(11)(3,715)(3,681)

(588)

(555)

(4,487)(8,744)(3,663)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Dividends paid
Dividends paid to non-controlling interests
Other, net(9,978)

(522)

(352)

Net increase(decrease) in cash and cash equivalents

2,701(7,942)

Cash and cash equivalents at beginning of period

44,97650,084

Cash and cash equivalents at end of period

47,67842,141Page 7 of 8Consolidated Segment Information
All yen figures are rounded down to the nearest one million yen.

(Millions of Yen)
2Q FY3/19 (4/1/18 – 9/30/18)
Reportable Segments
MineralConstruction
CementEnvironmental
Resources
Materials
Business
BusinessBusinessBusinessNet sales
Sales to outside
307,077
customers

Total

Other

Total

Adjustment

Consolidated
Total

28,54042,392

34,047412,057

26,643438,700-

438,700

Inter-segment
sales
Total

4,786

12,002

3,701

1,993

22,48412,01934,503(34,503)-311,863

40,54346,09436,040434,542

38,662473,204(34,503)438,700

Segment income

18,014

3,684

3,409

918

26,027

1,309

27,33647

27,3842Q FY3/20(4/1/19 – 9/30/19)
Reportable Segments
MineralConstruction
CementEnvironmental
Resources
Materials
BusinessBusinessBusinessBusinessNet sales
Sales to outside
303,363
customers

Total

Other

Total

Adjustment

Consolidated
Total

27,294

38,25137,023405,933

25,456431,389-

431,389

Inter-segment
sales
Total

5,232

12,166

3,285

2,015

22,701

11,17033,871(33,871)-308,596

39,461

41,53739,039428,634

36,626465,261(33,871)431,389

Segment income

12,288

3,230

3,546

1,951

21,016

1,337

22,354

109

22,463

Page 8 of 8