Summary of Consolidated Financial Results of Taiheiyo Cement Corporation
for the First Half of Fiscal 2006 Ended September 30, 2005
November 15, 2005
Company:
Stock code:
URL:

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

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

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 interim results (April 1, 2005 – September 30, 2005)
All yen figures are rounded down to the nearest one million yen.
(1) Consolidated results of operations
Net Sales
Millions of Yen

Operating income
%
3.5
–3.9

1H FY3/06
1H FY3/05
FY3/05

427,652
413,090872,686

1H FY3/06
1H FY3/05
FY3/05

Net income
Millions of Yen%–12,883–
6,255 –2.4
14,412

Ordinary income

Millions of Yen%

Millions of Yen%

24,578
16,714
48,18547.0
0.0

17,581
11,23838,264

56.4
11.2

EPS
Yen
–13.77
6.72
15.33

Diluted EPS
Yen
–
6.49
14.80

(2) Consolidated financial position
1H FY3/06
1H FY3/05
FY3/05

Total assets
Millions of Yen
1,233,163
1,283,054
1,247,532

Shareholders’ equity
Millions of Yen
233,383
225,209236,734

Equity ratio

Cash flows frominvesting activities
Millions of Yen–23,277
1,070
3,010

Cash flows fromfinancing activities
Millions of Yen–8,499–17,116–69,843

%
18.9
17.6
19.0

Equity per shareYen
249.16242.00253.26(3) Consolidated cash flows

1H FY3/06
1H FY3/05
FY3/05

Cash flows fromoperating activities
Millions of Yen
30,857
17,44054,299Cash and cash
equivalents at term-end
Millions of Yen
67,261
82,06467,473

2. FY3/06 consolidated earnings forecast (April 1, 2005 – March 31, 2006)
Sales
Millions of Yen
FY3/06880,000
Reference: FY3/06 EPS forecast: ¥ –1.06

Ordinary income
Millions of Yen
47,000Net income
Millions of Yen
5,000

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 8

Consolidated Balance Sheets
Item
AssetsCurrent assets
Cash and time deposits
Notes and accounts receivable
Inventories
Deferred income taxes
Short-term loans
Other current assets
Allowance for doubtful accounts
Fixed assets
A. Tangible fixed assets
Buildings and structures
Machinery, equipment
Land
Construction in progress
Other tangible fixed assets
B. Intangible fixed assets
Trade rights
Consolidation adjustments
Other intangible fixed assets
C. Investments and other assets
Investment securities
Long-term loans
Deferred income taxes
Other investments and assets
Allowance for doubtful accounts
Total assets

1H FY3/06(As of 9/30/05)

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

369,920
72,743
182,953
78,5403,670
15,77019,164–2,921
863,242579,935
195,955
166,376
180,627
12,83024,14547,325
13,504
6,411
27,409235,982
167,1097,260
16,487
60,119–14,994
1,233,163

366,243
73,364
190,071
67,811
3,592
16,89817,094–2,589881,289
608,111201,052
165,920
202,639
13,20725,29247,06013,016
6,955
27,088226,117
158,715
8,728
15,424
59,795–16,547
1,247,532(Unit: Millions of Yen)
1H FY3/05
Change(As of 9/30/04)
3,677
–621
–7,118
10,72977–1,1272,070–331–18,046–28,175–5,096456–22,012–377–1,146
264
488
–544
321
9,864
8,393
–1,468
1,063
323
1,552
–14,369

360,978
87,847
171,848
74,572
3,975
13,375
11,851–2,491
922,075
645,941
206,137
169,398
218,063
26,72825,61450,254
14,425
7,498
28,329225,880
152,923
9,129
15,512
62,690–14,374
1,283,054

Page 2 of 8

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
Fixed 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
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(Unit: Millions of Yen)
1H FY3/05
Change(As of 9/30/04)

1H FY3/06(As of 9/30/05)

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

579,950
105,761
353,152
35,654
6,754
47
5,958
892
71,727387,366
68,281
34,000172,427
17,922547,404
117,476
332,310
20,890
3,948
69
5,871
628
66,210433,525
63,49034,000215,266
28,18232,545–11,714
20,841
14,764
2,806
–21
87
264
5,517
–46,158
4,791––42,839–10,260

540,511
102,593
333,60231,105
5,431
56
5,999
567
61,155
486,400
73,49034,000249,293
26,332

5,893

5,937

–44

5,948

32,332

33,622–1,28935,032

2,080

2,304

–223

2,081

142
54,287967,31732,462

141
50,580980,929
29,867

1
3,707–13,6122,594

175
60,045
1,026,912
30,932

69,49958,892
86,137
4,788
23,583–7,963–1,554
233,383

69,49958,605
101,337
4,855
19,885–13,312–2,723
236,734–
287–15,199
–67
3,697
6,761
1,169
–3,351

69,49958,607
92,702
5,121
13,962–11,917–2,766225,209

1,233,163

1,247,532–14,369

1,283,054

Page 3 of 8

Consolidated Statements of Income
1H FY3/06
1H FY3/05(4/1/05–9/30/05) (4/1/04–9/30/04)
427,652
413,090Sales

336,802329,3657,437

682,891

Selling, general and administrative expenses

66,271

67,010–738

141,610

Income from operation

24,578

16,714

7,863

48,185Interest and dividends received
Equity in earnings of unconsolidated
subsidiaries and affiliates
Other non-operating income

2,024

2,331

–306

5,346

—

—

—

847

2,306

2,086

220

4,141

Total

4,331

4,417

–86

10,334

5,648

6,182

–534

12,627

3,950

1,068

2,882

—

1,729

2,642

–913

7,627

11,328

9,893

1,434

20,254

17,581

11,238

6,342

38,264443

7,389–6,94622,800Gain on sale of investment securities
Gain on dilution of ownership in
affiliated companies
Other extraordinary gains

1,287

7,448

–6,161

7,545

20

1,039

–1,018

1,373

130

96

34

470

Total

1,881

15,973–14,092

32,190

4,440

8,637

–4,196

27,071

580

175

404

4,299

83

747

–663

2,477

79

258

–178

666

IncomeCost of sales

ExpensesNon-operating income andexpenses

Operatingincome/loss

Item

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

Ordinary income

Gains

Gain on disposal of fixed assets

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(Unit: Millions of Yen)
YoY
FY3/05(4/1/04–3/31/05)
change14,561
872,686

Stock valuation loss
Loss on Impairment of fixed assets
Special allowance to employees retired
under early retirement scheme
Loss on closure of a cement plant
Business discontinuation costs
Other extraordinary losses
Total

Net income before income taxes
Income taxes

512

579

–67

2,029

31,789—31,789

—

104

186

–82

739

—

484

–484

518

—

—

—

6,898

649

873

–224

926

38,24011,943

26,29645,626–18,777

15,269–34,046

24,828

7,613

6,676

936

9,316

Income tax adjustments–13,376

1,660–15,036

891

Minority interest income

–131

676

–808

207

–12,883

6,255–19,138

14,412

Net income

Page 4 of 8

Consolidated Statements of Retained Earnings(Unit: Millions of Yen)
Item
Additional paid in capital
Additional paid in capital at beginning ofI
term
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 resulting from merger ofconsolidated subsidaiaries
Interim net loss
Ⅳ Retains earnings at end of term

1H FY3/06

1H FY3/05

58,60558,489287
287

YoY change
115

118
118

FY3/0558,489

169
169

115
115

58,89258,607285

58,605

101,337
67

88,7696,298

12,568–6,23088,76914,932–

6,255–6,255

14,412

–

41

–41

2

67

1
15,267

66
2,365

517
12,902

2,364

2,330
48

2,314
50

16
–1

2,314
50

3

–

3

–

12,883–86,137

12,88392,702––6,564

101,337

Page 5 of 8

Consolidated Statements of Cash Flows
Term
Item
I
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of diffarence between equity in net assets ofconsolidatedsubsidiaries and affiliates
Equity in gains of unconsolidated subsidiaries andaffiliates
Equity in losses of unconsolidated subsidiaries andaffiliates
Stock valuation loss
Increase/decrease in accrued retirement benefits
Increase/decrease in accrued retirement benefits todirectors and corporate auditors
Increase/decrease in bonus reserve
Increase/decrease in allowance for doubtful accounts
Increase in other reserves
Interest and dividends received
Interest expeses
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
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

1H FY3/06
4/1/05 –9/30/05

1H FY3/05
4/1/04 –9/30/04(Unit: Millions of Yen)
FY3/05YoY
4/1/04 –change3/31/05–18,777
18,733

15,26919,747–34,046–1,014

24,82840,339

575

582

–6

1,177

—

—

—

–847

3,950

1,068

2,882

—

512
–1,654

579
–745

–67
–908

2,029
1,905

–223

–988

764

–766

138
–1,224273–2,024
5,648–1,287
79
–20
83
–443
4,440
31,7893,105–7,849–10,265–58
11,32336,827
2,277–5,241–3,005519–1,62341–2,331
6,182–7,448258–1,039747–7,3898,637—
14,024–6,480–13,095–60
1,690
28,146
3,725–6,591–7,839

–380
399
232
306
–534
6,161
–178
1,018
–663
6,946
–4,196
31,789–10,919–1,369
2,830
1
9,633
8,681
–1,448
1,350
4,833

407
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

30,857

17,44013,41654,299Page 6 of 8

Term
Item
II Cash flows from investing activities
Payments for deposit in/proceeds from withdrawal fromtime 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
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

1H FY3/06
4/1/05 –9/30/05

1H FY3/05
4/1/04 –9/30/04

YoY
changeFY3/05
4/1/04 –3/31/05

473

–458

931

–636

–20,635
1,752–1,1100–5,931
1,572–5,607
3,547
2,661–16,458
4,991
–16
108
–944
10,072–2,273
3,569
2,479–4,177–3,238–1,094–107–4,986–8,500–3,333–22
181–33,508
26,827–544
1–934
11,064–11,630
10,3572,013–23,277

1,070–24,348

3,010–3,5199,807–35,100
30,200–10,645
392
3,121
–106
–2,330–319–13,868
17,651–32,786
22,800–10,085
1,446
387
–64
–2,314–284

10,348–7,843–2,3147,400–560–1,053
2,733
–42
–16
–34

–28,21339,720–72,720
23,100–30,600
1,542
240
–193
–2,314–404–8,499–17,116

8,617–69,843

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

694
–225
67,473238
1,633
80,534456–1,858–13,06196–12,436
80,534

—

–177

177

–700

13

74

–60

75

IX Cash and cash equivalents at end of term

67,261

82,064–14,80267,473

Page 7 of 8

Segment Information
Segment information(Unit: Millions of Yen)
MineralCementEnvironmental
Resources
Business
Business
Business
Sales and operating
incomeSales(1) Sales to
250,575
outsidecustomers(2) Intersegment
7,392
sales andtransfers
Total
257,967
Operating
240,202
expenses
Operating
17,764income1H FY3/06 (4/1/05 – 9/30/05)
Construction Ceramics &Materials Electronics Other
Business
Business

Total

Eliminations
Consolidated
or corporate
total
assets40,32330,50543,09130,86232,293427,652(—)

427,652

11,556

2,654

3,362

21

20,57545,562(45,562)—

51,88033,16046,45330,88452,868473,215(45,562)

427,652

49,88931,03446,54030,93349,754448,356(45,281)403,074

1,990

2,125

–86

–49

3,113

24,859(280)

24,578Overseas sales

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

North America
43,343—
10.1%(Unit: Millions of Yen)
1H FY3/05 (4/1/05 – 9/30/05)
Asia
Other
Total
40,317
9,539
93,199——427,652
9.4%
2.2%
21.8%

Page 8 of 8