Outline of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Second Quarter of Fiscal 2019 ended March 31, 2019
November 8, 2018
Company:
Stock code:
URL:

Taiheiyo Cement Corporation
5233

Fiscal 2018 2Q:
Fiscal 2018:
Fiscal 2019 2Q:
Fiscal 2019:http://www.taiheiyo-cement.co.jp/english/index.html

April 1, 2017- September 30, 2017
April 1, 2017- March 31, 2018
April 1, 2018- September 30, 2018
April 1, 2018- March 31, 2019

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 2019(April 1, 2018 through September 30, 2018)(1) Operating Results(% of change from previous second quarter)
Net Sales

Millions of Yen
438,700
421,937

2Q FY3/19
2Q FY3/18

Operating income%
4.0
11.9

Millions of Yen
27,38427,433*Comprehensive income : Fiscal 2019 2Q 15,288 (13.1%)

Profit attributable toowners of parent% Millions of Yen%(3.4)
2.4
17,33834.9(59.8)
16,928

Ordinary income%
(0.2)
27.8

Millions of Yen
27,10728,069Fiscal 2018 2Q 13,515(-27.0%)

EPS

Diluted EPSYenYen
2Q FY3/19
140.11–2Q FY3/18
136.87–*The Company has implemented the share consolidation of common stocks in a rate of one share for every ten shareseffective on October 1, 2017. Accordingly, EPS is calculated on the assumption that the share consolidation wasimplemented at the beginning of the previous fiscal year.

(2) Financial Position
Total assets
Millions of Yen
1,029,708
1,020,111

2Q FY3/19
FY3/18*Equity : Fiscal 2019 2Q: 406,296

Total net assets
Millions of Yen
441,940
432,326

Equity ratio%
39.5
38.8

Fiscal 2018: 395,268

2. Dividends
1Q
FY3/18
FY3/19FY3/19(forecast)

Dividend per share
3Q
4Q

2Q

Total

Yen

Yen

Yen

Yen

Yen

——

3.00
50.00

—

30.00

―—

30.00

80.00

*The Company has implemented the share consolidation of common stocks in a rate of one share for every ten shares effective on October 1, 2017.
The amount of dividend of the Second Quarter of Fiscal 2018 ended March 31, 2018 is presented as the amount of dividend prior to the share consolidation.
The annual dividend per share converted on the basis after the consolidation of shares would be 60.00 yen for the Fiscal Year ended March 31, 2018.
The dividend per share of the Second Quarter of Fiscal 2019 ended March 31, 2019 includes an ordinary dividend of 30.00 Yen and commemorative
dividend of 20.00 Yen.

3. Consolidated Results Forecast for the Fiscal 2019(April 1, 2018 through March 31, 2019)(% of change from the corresponding period of previous year)Net sales
FY3/19Operating income

Ordinary income

Millions of Yen%

Millions of Yen%

Millions of Yen%

900,000

3.3

68,000

4.4

66,000

2.5

Profit attributable toowners of parent
Millions of Yen%
9.0
42,000EPS
Yen

339.35This 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
All yen figures are rounded down to the nearest one million yen.
(Millions of Yen)

ItemAssets
Current assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claimsoperating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
A. Property, plant and equipment
Buildings and structures, net
Machinery, equipment, and vehicles, net
Land
Other, net
Total property, plant and equipment
B. Intangible assets
Goodwill
Other
Total intangible assets
C. Investments and other assets
Investment securities
Asset for retirement benefits
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

FY3/18(As of 3/31/18)

2Q FY3/19(As of 9/30/18)

53,766
182,272

56,193
178,259

10,98912,61529,193
2,383
41,761
14,024(1,116)333,275

30,5882,381
42,99813,658(771)
335,923

134,456
136,603
158,057
76,320505,438

133,213132,379
157,729
90,521
513,844

777
32,26133,038348
30,826
31,174

86,834
21,29848,767(8,539)148,360
686,836
1,020,111

88,536
21,32047,486(8,579)148,765
693,784
1,029,708

Page 2 of 8All yen figures are rounded down to the nearest one million yen.

ItemLiabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term loans payable
Commercial papers
Current portion of bonds
Income taxes payable
Provision for bonuses
Other provision
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Liability for retirement benefits
Provision for directors’ retirement benefits
Provision for special repairs
Other provision
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Retirement benefits liability adjustments
Total accumulated other comprehensive
incomeNon-controlling interests

FY3/18(As of 3/31/18)(Millions of Yen)
2Q FY3/19(As of 9/30/18)

91,113
4,670
153,181―
15,035
6,416
6,021
121
83,986
360,546

90,867
7,155
147,930
33,00010,000
7,357
6,119
180
83,258385,871

20,000100,390
24,559
520
128
750
7,553
73,335
227,238
587,785

10,00086,817
24,119
472
75
756
7,577
72,078201,897587,768

86,17460,339260,016(10,947)
395,582

86,17460,405
273,638(11,069)
409,149

10,941

12,3901
5,057(16,201)
(111)

0
5,054
(20,312)14(313)(2,852)37,05835,643

Total net assets

432,326

441,940

Total liabilities and net assets

1,020,111

1,029,708

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

Cost of sales(Millions of Yen)
2Q FY3/19(4/1/189/30/18)
438,700
421,937
342,391
324,498

Gross profit

97,43996,309Selling, general and administrative expenses

70,00568,924

Operating income

27,43327,384

Interest income

313

270

Dividends income

615

731

2,053

1,297

1,461

1,276

4,445

3,575

Interest expenses

2,394

1,953Other

1,415

1,899

3,809

3,852

28,06927,107

Gain on disposal of non-current assets

787

374

Gain on sales of investment securities

7646

Other
Total extraordinary income

3956

903

478

1,165
273

1,034

1,438

1,704

27,53425,881Item
Net sales

2Q FY3/18(4/1/179/30/17

Non-operating income

Equity in earnings of unconsolidated subsidiaries
and affiliates
Other
Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

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

669

Income taxes total

9,434

7,484

Profit18,09918,397

Profit attributable to non-controlling interests

1,171

1,058

Profit attributable to owners of parent

16,92817,338Page 4 of 8

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

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to :Owners of parent
Non-controlling interests

2Q FY3/18(4/1/179/30/17)
18,099(Millions of Yen)
2Q FY3/19(4/1/189/30/18)
18,397857
69(5,833)
379

1,470(0)(4,691)
118

(57)

(5)

(4,584)
13,515(3,109)15,28813,289226

14,799488

Page 5 of 8Consolidated Statements of Cash FlowsAll yen figures are rounded down to the nearest one million yen.

(Millions of Yen)
2Q FY3/19(4/1/189/30/18)

2Q FY3/18(4/1/179/30/17)
Cash flows from operating activities
Income before income taxes and non-controlling interests
Depreciation and amortization
Amortization of goodwill
Equity in (earnings)losses of unconsolidated
subsidiaries and affiliates
Loss(gain) on valuation of investment securities
Changes in asset and liability for retirement benefits
Increase(decrease) in provision for directors' retirement
benefits
Increase(decrease) in provision for bonuses
Increase(decrease) in allowance for doubtful accountsIncrease(decrease) in other provisionInterest and dividends income
Interest expenses
Loss(gain)on sales of investment securities
Loss(gain)on disposal of property, plant, and equipment
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Decrease(Increase) in time deposits
Purchase of property, plant, and equipmentProceeds from sales of property, plant, and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments of loans receivableCollections of loans receivable
Other, net
Cash flows from investing activities

27,534
21,3281,271

25,881
21,072447(2,053)(1,297)

25
1,165

293
(118)

(100)

(48)

137
76
(251)
(929)
2,394
(76)
377
(16,527)
(482)
7,586

98
(203)
12
(1,001)
1,953
81659
313
(4,054)
2,681

13,61555,0901,648(2,511)(5,762)
48,465

3,743
50,515
1,745(2,118)(6,056)44,085(214)(23,476)
1,805
(106)
665

61(33,928)
628
(108)
191

―

1,308

(1,587)1,774(2,026)(23,165)(1,314)1,445(401)(32,117)

Page 6 of 8

Cash flows from financing activities
Increase (decrease) in short-term loans payable

(535)

6,342

Increase (decrease) in commercial papers

7,000

33,000

Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds

6,236(22,439)(10,085)(24)
1,121(3,707)(1,359)(2,728)(26,521)(636)(1,858)51,974
50,115

11,615(35,861)(15,035)(13)―(3,715)(588)(4,487)(8,744)(522)
2,701
44,97647,678Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividend paid

Dividends paid to non-controlling interests
Other, net
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of the period

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

(Millions of Yen)

CementBusiness
Net sales
Sales to outside
customers
Inter-segment
sales
Total
Segment income

Inter-segment
sales
Total
Segment income

Total

Adjustment Consolidated
Total

294,057

28,58839,52034,372396,538

25,398421,937－

421,937

5,759

11,508

2,979

1,946

22,193

9,915

32,109(32,109)－299,817
17,17040,096
3,660

42,4993,662

36,318
1,815

418,731
26,30935,314
1,054

454,046
27,364(32,109)69

421,937
27,433

CementBusiness
Net sales
Sales to outside
customers

2Q FY3/18 (4/1/17 – 9/30/17)
Reportable Segments
MineralConstruction
Environmental
Other
Resources
Materials
Business
Total
Business
Business

2Q FY3/19 (4/1/18 – 9/30/18)
Reportable Segments
MineralConstruction
Environmental
Other
Resources
Materials
Business
Total
Business
Business

Total

Adjustment Consolidated
Total

307,077

28,54042,392

34,047412,057

26,643438,700－438,700

4,786

12,002

3,701

1,993

22,48412,01934,503(34,503)－311,863
18,01440,543
3,684

46,094
3,409

36,040918

434,542
26,027

38,662
1,309

473,204
27,336(34,503)47

438,700
27,384

Page 8 of 8