Outline of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Second Quarter of Fiscal 2018 ended March 31, 2018
November 9, 2017
Company:
Stock code:
URL:

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

Fiscal 2017 2Q:
Fiscal 2017:
Fiscal 2018 2Q:
Fiscal 2018:

April 1, 2016- September 30, 2016
April 1, 2016- March 31, 2017
April 1, 2017- September 30, 2017
April 1, 2017- March 31, 2018

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 2018(April 1, 2017 through September 30, 2017)(1) Operating Results
Net Sales
2Q FY3/18
2Q FY3/17

Millions of Yen
421,937
376,929

Operating income%
11.9(9.2)

Millions of Yen
27,433
21,468*Comprehensive income : Fiscal 2018 2Q 13,515

Profit attributable toowners of parent% Millions of Yen%
34.9(59.8)
16,928(21.2)
166.4
42,099Ordinary income% Millions of Yen
28,06920,80927.8(15.0)

Fiscal 2017 2Q 18,507

EPS

Diluted EPSYenYen
2Q FY3/18
136.87–2Q FY3/17
340.28–The Company finalized provisional accounting treatment related to the business combination in the Third Quarter of Fiscal
2017 ended March 31, 2017. The consolidated financial statements for the Second Quarter of Fiscal 2017 ended March 31,2017 reflects the finalized provisional accounting treatment.
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. Accordingly, EPS is calculated on the assumption that the share consolidation was implemented at thebeginning of the previous fiscal year.

(2) Financial Position
2Q FY3/18
FY3/17

Total assets
Millions of Yen
1,021,290
1,015,415*Equity : Fiscal 2018 2Q 372,166

Total net assets
Millions of Yen
408,397
400,034

Equity ratio
%
36.4
35.6

Fiscal 2017 361,819

2. Dividends
1Q

Dividend per share
3Q
4Q

2Q
Yen

Yen

Yen

Total
Yen

Yen

FY3/17
—
3.00
—
3.00
6.00
FY3/18—3.00
30.00
FY3/18(forecast)—―
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. Therefore, the forecast amount of year-end dividends per share for FY2018 presented above reflects theimpact of the consolidation of share and the amount of dividends for the full year is not presented (indicated by “-”). The
forecast amount of year-end dividends per share for FY2018 without reflecting the impact of the consolidation of shares is￥3 and the amount of dividends per share for full year of FY2018 is ￥6.

3. Consolidated Results Forecast for the Fiscal 2018(April 1, 2017 through March 31, 2018)
Profit attributable toEPS
owners of parent
Millions of Yen
MillionsofYen
MillionsofYen
MillionsofYen
Yen%%%%
8.3
6.0
8.7(20.2)
307.11
865,000
67,00065,00038,000FY3/18The 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 forecast of EPS for full year of FY2018 reflects the impact of consolidation of shares.
Net sales

Operating income

Ordinary income

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 7

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

(Millions of Yen)

Item
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
A. Property, plant and equipment
Buildings and structures, netMachinery, equipment, and vehicles, netLand
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

FY3/17(As of 3/31/17)

2Q FY3/18(As of 9/30/17)

60,516
171,946
31,835
1,708
42,422
25,591(1,125)
332,895

58,628
187,489
29,6502,578
42,51023,168(1,116)
342,910

136,454
135,380
160,571
64,744
497,151

133,775
129,933
159,063
72,139494,912

3,409
34,25037,6601,962
33,10635,06984,781
17,35253,908(8,333)
147,708
682,520
1,015,415

86,66816,34953,787(8,407)
148,397
678,379
1,021,290

Page 2 of 7

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

(Millions of Yen)
Item
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Commercial PaperCurrent 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
Total net assets
Total liabilities and net assets

FY3/17(As of 3/31/17)

2Q FY3/18(As of 9/30/17)

79,676
134,428―
11,120
5,914
5,742
410
71,618308,91086,728147,108
7,000
16,070
9,105
5,880
323
85,982
358,197

35,035160,346
24,217
568
121
981
7,520
77,677
306,469
615,380

20,000129,019
23,731467
105
833
7,508
73,029254,695
612,892

86,17459,548228,914(10,911)363,725

86,17460,272
242,135(10,870)
377,712

9,830

10,72648
5,065(12,862)(3,987)76
5,065(17,685)(3,727)(1,906)(5,545)38,21536,231400,034

408,397

1,015,415

1,021,290

Page 3 of 7

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

(Millions of Yen)

Net sales

376,9292Q FY3/18(4/1/179/30/17)
421,937

Cost of sales

289,657

324,498

Gross profit

87,272

97,439Selling, general and administrative expenses

65,80370,005

Operating income

21,46827,433

Interest income

265

313

Dividends income

507

615

1,966

2,053

1,246

1,461

3,984

4,445

Interest expenses

2,566

2,394

Other

2,077

1,415

4,644

3,809

20,80928,069329

787

Gain on sales of investment securities

3,966

76

Gain on bargain purchase

16,874―21

39

21,191

903

787
3,034

1,165

267

273

4,089

1,438

Income before income taxes and non-controlling interests

37,911

27,534

Income taxes-current(5,164)

9,434

ProfitProfit attributable to non-controlling interests

43,075975

18,0991,171

Profit attributable to owners of parent

42,09916,928Item

2Q FY3/17(4/1/169/30/16

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
Gain on disposal of property, plant, and equipment

Other
Total extraordinary income
Extraordinary loss
Loss on disposal of property, plant, and equipment
Loss on step acquisitions
OtherTotal extraordinary losses―Page 4 of 7

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
Retirement benefits liability adjustments
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(Millions of Yen)
2Q FY3/17
2Q FY3/18(4/1/16(4/1/179/30/16)
9/30/17)
43,07518,099524
105(26,113)2,177

857
69(5,833)
379(1,260)(57)(24,568)
18,507(4,584)
13,515

21,699(3,192)

13,289226

Page 5 of 7

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

2Q FY3/17(4/1/169/30/16)
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 accounts
Increase(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
Loss (gain) on step acquisitions(Millions of Yen)
2Q FY3/18(4/1/179/30/17)

37,911
21,597
1,298

27,534
21,328
1,271(1,966)(2,053)

15
1,736

25
1,165

(39)

(100)

69(62)
(589)
(772)
2,566
(3,950)
458
6,849
(995)
(8,293)
3,034

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

Gain on bargain purchase(16,874)―

Other, net

4,167
46,1601,154(2,661)(8,207)36,446

13,61555,0901,648(2,511)(5,762)
48,465457(20,042)
731
(507)
40,718(2,781)
1,876(537)
19,914(214)(23,476)
1,805
(106)
665
(1,587)1,774(2,026)(23,165)

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 equipment
Proceeds from sales of property, plant, and equipment
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollections of loans receivable
Other, net
Cash flows from investing activities

Page 6 of 7Cash flows from financing activities
Increase (decrease) in short-term loans payable(8,218)

(535)

―

7,000

Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from share issuance to non-controllingshareholders

11,026(26,776)
(365)

6,236
(22,439)(10,085)

1,400―

Purchase of treasury stock
Proceeds from sales of treasury stock
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(36)
1(3,690)(500)(2,775)(29,934)(3,013)
23,41250,072(24)
1,121(3,707)(1,359)(2,728)(26,521)(636)(1,858)51,974

Increase in cash and cash equivalents by share exchanges

1,108―

43―

74,637

50,115

Increase (decrease) in commercial papers

Cash dividend paid

Increase in cash and cash equivalents resulting from merger ofsubsidiaries
Cash and cash equivalents at end of the period

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(loss)

Inter-segment
sales
Total
Segment
income(loss)

Total

Adjustment Consolidated
Total

262,593

28,36932,68030,065353,708

23,220376,929－

376,929

4,437

10,122

2,587

2,015

19,161

10,212

29,374(29,374)－

267,030

38,49135,26732,080372,870

33,433406,303(29,374)

376,929

12,3693,360

3,4641,387

20,582

1,026

21,608(139)

21,468

CementBusiness
Net sales
Sales to outside
customers

2Q FY3/17 (4/1/16 – 9/30/16)
Reportable Segments
MineralConstruction
Environmental
OtherResources
Materials
Business
Total
Business
Business

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

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

40,09642,499

36,318418,73135,314454,046(32,109)421,937

17,170

3,660

3,662

1,815

26,3091,054

27,36469

27,433

Page 7 of 7