Reference Materials of Financial Results
for the Three Months Ended June 30, 2022

August 9, 2022

Contents
1. Highlights of Consolidated Financial Results

Page 2

3. Forecast for the Fiscal 2023

Page 7(1) Consolidated Statements of Income
2. Financial Results for the Three Months Ended
June 30, 2022
(1) Consolidated Segment Information(2) Consolidated Balance Sheets

Page 3(2) Consolidated Segment Information

4. Reference Information

Page 10(1) Change in Interest-bearing Debt
(2) Change in Capital Investment(3) Change in Depreciation Expenses(4) Change in Research and Development Expenses(5) Sales Volume of Cement in Overseas Subsidiaries(6) Overview of Businesses in the U.S.A.
(7) Forecast for the First Half of Fiscal 2023

Page 1

1. Highlights of Consolidated Financial Results
FY 2020

Change(Million yen)

1st Quarterof FY2022

1st Quarterof FY2023

159,612

176,516

16,904

Operating profit

9,919

1,208(8,710)

Ordinary profit

10,4792,185(8,293)

Net sales

Profit attributable to owners of parent

FY 2019＜ Indexes＞

6,577

As of Mar.
31, 2022(220)

FY 2020

As of Jun.
30, 2022

Change(6,798)

ChangeChangeCapital adequacy ratio (%)

46.3

42.7

(3.6)

Capital adequacy ratio based on market value (%)

21.4

19.5

(1.9)

4,362.2

4,427.7

65.5

1st Quarterof FY2022

1st Quarterof FY2023

54.9

(1.9)

Net assets per share (Yen)

Basic earnings per share (Yen)

Change(56.8)

Page 2

2. Financial Results for the Three Months
Ended June 30, 2022
(1) Consolidated Segment Information
Net Sales and Operating Profit by Reportable Segments(Million yen)

Net Sales
1st Quarter 1st Quarterof FY2022 of FY2023

Operating ProfitChange

1st Quarter 1st Quarterof FY2022 of FY2023

Change56,25260,607

4,354

859(6,475)(7,334)

49,23758,362

9,124

5,332

4,513

(818)

Total

105,489

118,969

13,4796,191(1,961)(8,153)Mineral Resources Business

18,37019,930

1,559

1,344

1,449

105

Environmental Business

15,17817,618

2,440

1,333

1,352

19

Construction Materials Business

13,457

13,576

119

125(412)

(537)

Other

20,307

20,256

(51)

1,008

558

(450)

Total

172,804

190,351

17,547

10,002986(9,016)

Elimination(13,191)(13,835)

(643)

(83)

222

305

Consolidated Total159,612

176,516

16,904

9,919

1,208(8,710)

CementDomestic

Business Overseas Subsidiaries, etc.

Page 3

2. Financial Results for the Three Months
Ended June 30, 2022
(1) Consolidated Segment Information

Sales Volume of Cement(Thousand tons)
1st Quarter 1st Quarter
Changeof FY2022 of FY2023

Cement Business

Domestic

3,274

3,227(47)

Export994

804(190)(Million yen)

Net Sales

Domestic

1st Quarter 1st Quarterof FY2022 of FY2023
56,25260,607

ChangeMain Factors of Changes in Net Sales and Operating Profit

4,354 Decrease in sales volume of domestic cement and soil stabilizers -0.7 billion yen
Decrease in export cement volume -0.9 billion yen

Overseas
Subsidiaries,etc.
Total
Operating
ProfitDomestic

49,23758,362

Price difference in domestic cement and soil stabilizers +2.6 billion yen
Price difference in export cement +2.3 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed
concrete, etc. +1.0 billion yen
9,124 U.S.A. +US$32 million, China -US$0 million, Asia and other +US$9 million
Effect of foreign exchange, etc. +4.8 billion yen105,489

118,969

13,479859(6,475)(7,334) Decrease in sales volume of domestic cement and soil stabilizers -0.1 billion yen
Decrease in export cement volume -0.3 billion yen
Price difference in domestic cement and soil stabilizers +2.3 billion yen
Increase in net export cement revenue +1.3 billion yen
Increase in variable cost -9.1 billion yen

Overseas
Subsidiaries,etc.
Total

5,332

4,513

Increase in fixed cost -0.3 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed
concrete, etc. -1.1 billion yen(818) U.S.A. -US$4 million, China -US$4 million, Asia and other -US$4 million
Effect of foreign exchange, etc. +0.4 billion yen

6,191(1,961)(8,153)

Page 42. Financial Results for the Three Months
Ended June 30, 2022
(1) Consolidated Segment Information
Reportable Segments (Excluding Cement Business) and Other(Million yen)

MineralResources
Business

Net Sales

1st Quarter 1st Quarterof FY2022 of FY2023
18,37019,930ChangeMain Factors of Changes in Net Sales and Operating Profit

1,559 Increase in sales volume of aggregatesIncrease in various type of costs partly passed on to sales prices

Operating
ProfitEnvironmental Net Sales
Business
Operating
ProfitConstruction Net Sales
Materials
Business
Operating
ProfitOtherNet Sales
Operating
Profit

1,344

1,449

105 Increase in various type of costs partly passed on to sales prices

15,17817,6182,440 Waste recycling operations and sales volume of fuel remained strong

1,333

1,352

19 Waste recycling operations and sales volume of fuel remained strong

13,457

13,576

119 Sales of ALC (Autoclaved Lightweight Concrete) and contruction materials remained

125(412)(537) Rapid rise in raw material prices

20,307

20,256

(51)

1,008

558

(450)

strong despite decrease in sales of ground improvement projects
Decrease in sales of ground improvement projects

Page 5

2. Financial Results for the Three Months
Ended June 30, 2022
(2) Consolidated Balance Sheets(Million yen)
Change143,178

149,545

6,366

94,189120,635

26,446

Other

42,91048,018

5,107

Total current assets

340,550

421,997

81,446

Total property, plant andequipment
Total intangible assets

557,829

586,482

28,65327,56627,324(241)

Total investments and other assets

177,061

177,146

84

Total non-current assets
Total assets

762,457

790,954

1,103,007

1,212,951

As of Dec. As of Mar.
31, 2021
31, 2022
Exchange rate at end of period (Yen/US$)

115.02

122.3928,497

As of Mar. As of Jun.
31, 2022
30, 2022
309,768
397,184

Change87,416

Non-current liabilities

248,440

262,146

13,705

Total liabilities

558,208

659,331

101,122

Share capital

86,174

86,174-Capital surplus

49,72949,724(4)Retained earnings

384,154379,865(4,288)Treasury shares(13,766)(13,767)(1)

Total shareholders' equity

506,291

501,996(4,294)

Accumulated other comprehensive
incomeNon-controlling interests

4,325

16,282

11,95634,18135,341

1,160

Total net assets

544,799553,620

8,821

1,103,007

1,212,951

109,943

Shareholders' equity

Notes and accounts receivable trade, and contract assets
Inventories

Current liabilities
Liabilities

43,526

Net assets

Non-current assets

Current assets

Cash and deposits

As of Mar. As of Jun.
31, 2022
30, 2022
60,271
103,798

109,943 Total liabilities and net assets

Change7.37 Interest-bearing debt (Million yen)

As of Mar. As of Jun.
31, 2022
30, 2022
270,587

340,983

Change70,396

Page 6

3. Forecast for the Fiscal 2023
(1) Consolidated Statements of Income(Hundred million yen)
FY2022(Actual)FY2023(Forecast)

Change

7,082

8,540

1,458

Operating profit

467

320

(147)

Ordinary profit

501

315

(186)

Extraordinary income and losses

(73)

(50)

23

Profit before income taxes

428

265

(163)

Profit attributable to owners of parent

289

185

(104)

Domestic demand of cement (Ten thousand tons)

3,788

3,800

12

Average exchange rate applied by overseas subsidiaries (Yen/US$)

109.9

130.0

20.1

Net sales＜Preconditions＞

Page 7

3. Forecast for the Fiscal 2023
(2) Consolidated Segment Information
Net Sales and Operating Profit by Reportable Segments(Hundred million yen)

Net Sales
FY2022(Actual)CementDomestic

FY2023(Forecast)

Operating Profit
FY2022(Actual)ChangeFY2023(Forecast)

Change

2,374

2,860

486

(18)

(160)

(142)

2,257

3,120

863

260

308

48

Total

4,632

5,980

1,348

241

148(93)Mineral Resources Business771

850

7960

52(8)

Environmental Business723

830

1076656(10)Construction Materials Business

650

720

703415(19)Other890

870(20)6948(21)

Total

7,668

9,250

1,582472

319(153)

Elimination

(586)

(710)

(124)

(5)

16

Consolidated Total

7,082

8,540

1,458

467

320(147)

Business Overseas Subsidiaries, etc.

Page 8

3. Forecast for the Fiscal 2023
(2) Consolidated Segment Information

Sales Volume of Cement
FY2022(Actual)Cement Business(Thousand tons)
FY2023
Change(Forecast)

Domestic

13,363

13,206(156)

Export4,147

3,015(1,132)(Million yen)

Net Sales

OperatingProfit

DomesticOverseasSubsidiaries,etc.
Total
Domestic

Overseas
Subsidiaries,etc.
Total

FY2022
FY2023(Actual)(Forecast)
2,374
2,860

2,257

3,120

4,632
(18)

5,980
(160)

260

308

241

148

ChangeMain Factors of Changes in Net Sales and Operating Profit

486 Decrease in sales volume of domestic cement and soil stabilizers -1.5 billion yen
Decrease in export cement volume -6.0 billion yen
Price difference in domestic cement and soil stabilizers +43.1 billion yen
Price difference in export cement +9.0 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed
concrete, etc. +4.0 billion yen
863 U.S.A. +US$282 million, China -US$10 million, Asia and other +US$87 million
Effect of foreign exchange, etc. +47.7 billion yen

1,348(142) Decrease in sales volume of domestic cement and soil stabilizers -0.8 billion yen
Decrease in export cement volume -2.0 billion yen
Price difference in domestic cement and soil stabilizers +39.8 billion yen
Increase in net export cement revenue +6.4 billion yen
Increase in variable cost -50.6 billion yen
Increase in fixed cost -3.7 billion yen
Decrease in sales from subsidiaries producing or selling cement or ready-mixedconcrete, etc. -3.3 billion yen
48 U.S.A. +US$16 million, China -US$7 million, Asia and other -US$12 million
Effect of foreign exchange, etc. +5.0 billion yen(93)Page 9

4. Reference Information

Page 10

4. Reference Information

Page 11

4. Reference Information

Page 12

4. Reference Information(7) Forecast for the First Half of Fiscal 2023
① Consolidated Statements of Income(Hundred million yen)First Half of First Half ofFY2022
FY2023(Actual)(Forecast)Change

3,397

3,800403

Operating profit258(28)(286)

Ordinary profit

265(25)(290)

Extraordinary income and losses

26(20)(46)

Profit before income taxes

291

(45)

(336)

Profit attributable to owners of parent

194(57)(251)

Net sales

Page 13

4. Reference Information(7) Forecast for the First Half of Fiscal 2023
② Net Sales and Operating Profit by Reportable Segments(Hundred million yen)

Net SalesFirst Half of First Half of
FY2022
FY2023(Actual)(Forecast)
CementDomestic

Operating Profit
First Half of First Half of
FY2022
FY2023(Actual)(Forecast)

ChangeChange1,143

1,300

157

15(184)

(199)

1,109

1,290

181

14899(49)

Total

2,253

2,590

337

164(85)(249)

Mineral Resources Business372400282625(1)Environmental Business

338415773025(5)Construction Materials Business

292

320

28

113(8)Other

420

395(25)243(21)

Total

3,676

4,120

444

257(29)(286)

Elimination

(278)

(320)

(42)

011

Consolidated Total

3,397

3,800

403

258(28)(286)

Business Overseas Subsidiaries, etc.

Page 14This document is a translation of the original Japanese version and provided for reference purposes only. In theevent of any discrepancy between the Japanese original and this English translation, the Japanese original shallprevail.
Forecasts and other forward-looking statements in this document are based on information available to Taiheiyo
Cement as of the date of the release of this document and on certain assumptions Taiheiyo Cement deems
reasonable, and therefore are subject to risks and uncertainties.
As such, Taiheiyo Cement does not offer any promise or guarantee that forecasts included in this document will
be realized in the future. Actual results may differ significantly due to a variety of factors.

Page 15