Summary of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Fiscal 2007 Ended March 31, 2007
May 15, 2007
Company:
Stock code:
URL:

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

Fiscal 2006 : April 1, 2005-March 31,2006
Fiscal 2007 : April 1, 2006-March 31, 2007
Fiscal 2008 1H: April 1, 2007-September 30, 2007
Fiscal 2008 : April 1, 2007-March 31, 2008

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. FY3/07 consolidated results (April 1, 2006 – March 31, 2007)
All yen figures are rounded down to the nearest one million yen.
(1) Consolidated results of operations
FY3/07
FY3/06Net Sales
Millions of Yen
940,630
906,657

Operating income
Millions of Yen%
76,692 23.7
62,011 28.7

%
3.7
3.9

EPS

Diluted EPS
Yen
26.08
9.63

FY3/07
FY3/06

Ordinary income
Net income
Millions of Yen% Millions of Yen%
67,907 36.4
24,408 168.2
49,792 30.1
9,101 –36.9

ROE

Operating income
to net sales
%
8.2
6.8

ROA

Yen
25.20
9.29

%
8.7
3.6

%
5.4
3.9

(2) Consolidated financial position
Total assets
Millions of Yen
1,256,980
1,278,245

FY3/07
FY3/06

Shareholders’ equity
Millions of Yen
329,637
269,387

Equity ratio

Cash flows frominvesting activities
Millions of Yen–37,702–22,627

Cash flows fromfinancing activities
Millions of Yen–53,272–14,649

Equity per shareYen
312.98287.91

%
23.3
21.1

(3) Consolidated cash flows
Cash flows fromoperating activities
Millions of Yen
62,613
61,460

FY3/07
FY3/06

Cash and cash
equivalents at term-end
Millions of Yen
65,657
93,4892. Dividends
Dividends per share
1H

FY3/06
FY3/07
FY3/08(forecast)Year-end

AnnualTotal amount ofcash dividends(annual)Dividends
payout ratio(consolidated)
%
26.0
15.3
14.6

Yen

Yen

Yen

Millions of Yen

—
2.00
2.00

2.50
2.00
3.00

2.50
4.00
5.00

2,370
3,791
—

Ratio of total
amount of dividends
to shareholders’equity (consolidated)
%
0.9
1.3
—

3. FY3/08 consolidated earnings forecast (April 1, 2007 – March 31, 2008)
Sales
1H FY3/08

468,000%
2.9

FY3/08973,000

3.4

Millions of Yen

Operating income%
26,000 –14.6
73,000–4.8

Millions of Yen

Ordinary income

Net income
Millions of Yen

19,000%–25.2

63,000–7.2

Millions of Yen

EPS

6,700

%
–15.4

7.16

32,000

31.1

34.18

Yen

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 9

Consolidated Balance Sheets(Unit: Millions of Yen)
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
Current assets
Fixed assets
A. Tangible fixed assets
Buildings and structures
Machinery, equipment
Land
Construction in progress
Other tangible fixed assets
Tangible fixed assets
B. Intangible fixed assets
Trade rights
Consolidation adjustments
Goodwill
Other intangible fixed assets
Intangible fixed assets
C. Investments and other assets
Investment securities
Long-term loans
Deferred income taxes
Other investments and assets
Allowance for doubtful accounts
Investments and other assets
Fixed assets
Total assets

FY3/07(As of 3/31/07)

FY3/06(As of 3/31/06)

70,142206,927
80,412
5,385
13,732
16,773–1,848391,526

98,891
197,455
73,995
4,245
16,353
14,827–3,546402,222–28,748
9,472
6,417
1,139
–2,6201,945
1,698–10,695

191,675
173,575
174,927
14,78325,324580,285

194,305
171,228
179,662
13,662
24,529583,388–2,6302,346–4,734
1,120
795–3,102––
19,72525,33945,064

14,262
5,843–
27,48747,592–14,262–5,843
19,725–2,148–2,528183,365
4,931
16,94551,658–16,799
240,102865,453
1,256,980

180,110
6,205
15,71458,488–15,478
245,041
876,022
1,278,245

3,255–1,273
1,230–6,830–1,320–4,938–10,569–21,265

ChangePage 2 of 9

(Unit: Millions of Yen)
Item
Liabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Commercial Paper
Bonds (due within one year)
Income taxes payable
Deferred income taxes
Bonus reserve
Bonus reserve for directors andcorporate auditors
Other reserves
Other current liabilities
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
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 andtotal shareholders’ equity
Net asset
Shareholders’ equity
Capital stock
Additional paid in capital
Retained earnings
Treasury stock
Shareholders’ equity
Valuation and translation adjustment
Unrealized gain on other securities
Loss on deferred hedge
Revaluation excess
Foreign currency translation adjustments
Accumulated other comprehensive
income (loss)
Valuation and translation adjustment
Minority interests
Total net asset
Total liabilities and total net asset

FY3/07(As of 3/31/07)

FY3/06(As of 3/31/06)

116,751
282,058
11,000
1,574
4,654
106
6,825

119,987
328,742–
61,754
12,952
5
6,362–3,235–46,683
11,000–60,180–8,298
101
463

65

–

65

719
74,867498,623

629
63,495593,92990
11,371–95,305

74,34934,196
206,973
23,84353,05434,000181,904
21,00921,295
196
25,069
2,833

6,061

6,077

–15

34,91933,314

1,604

2,384

2,313

70

250
45,738428,718
927,342–133
47,352
379,160
973,090
35,768116–1,61349,557–45,747
–

–
–
–
–
–
–
–
–

69,49959,515
105,973
4,691
28,1993,260–1,752
269,387

–
–
–
–
–
–
–
–

–

1,278,245–

69,49959,868126,127–1,669252,085

–
–
–
–
–

–
–
–
–
–

25,48521
4,677
10,720

–
–
–
–

–
–
–
–

–1,740––39,16536,646329,637
1,256,980

–
–
–
–

–
–
–
–

ChangePage 3 of 9

Consolidated Statements of Income(Unit: Millions of Yen)
FY3/07
FY3/06
Change(4/1/06–3/31/07) (4/1/05–3/31/06)
940,630
906,657
33,973

Sales

728,386

708,258

20,127

Selling, general and administrative expenses

135,551

136,386–834

Income from operation

76,69262,011

14,681

IncomeCost of sales

ExpensesNon-operating income andexpenses

Operatingincome/loss

Item

Interest and dividends received

2,835

4,306

–1,470

Other non-operating income

6,240

4,259

1,980

9,075

8,565

509

11,460

11,228

231

3,339

5,545

–2,206

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

Ordinary income
Gain on sale of investment securities
Gain on dilution of ownership in
affiliated companies
Gain on return of retirement benefit
trust
Other extraordinary gains
Total
Loss on disposal of fixed assets
Provision for allowance for doubtful
accounts
Liquidation of unconsolidated
subsidiaries and affiliates
Loss on sale of investment securities
Stock valuation loss
LossesExtraordinary gains and losses

Gains

Gain on disposal of fixed assets

3,061

4,010

–948

17,86020,784–2,92367,907

49,792

18,115

2,566

4,435

–1,868496

13,899–13,402—

1,496–1,496

2,101

—

2,101

835

1,961

–1,126

6,001

21,792–15,791

8,400

8,389

10

1,167

3,896

–2,728

802

129

673

406

306

99

839

1,121

–281

8,328

33,435–25,106

70

263

–193

—

949

–949

208

—

208

Loss on Impairment of fixed assets
Special allowance to employees retired
under early retirement scheme
One-time amortization of consolidation
adjustments
Loss on change in equity in affiliatedcompanies
Other extraordinary losses

2,815

3,621

–805

Total

23,03952,113–29,073

Net income before income taxes

50,86919,471

31,397

Income taxes

19,86723,226–3,359

Income tax adjustments

3,666–14,108

17,774

Minority interest income

2,926

1,251

1,674

Net income

24,4089,101

15,306

Page 4 of 9

Consolidated Statements of Retained Earnings
Item(Unit: Millions of Yen)
FY3/06(4/1/05-3/31/06)

Additional paid in capital
Additional paid in capital at beginning ofI
term
II Increase in additional paid in capitalGain on disposal of treasury stock
III Additional paid in capital at end of term
Retained earnings
I Retained earnings at beginning of term
II Increase in retained earnings
Net income
Reversal of land revaluation difference
III Decrease in retained earnings
Dividends
Bonuses to directors and corporate auditors
Decrease due to increase in consolidated
subsidiaries
Decrease due to decrease in companies
subject to equity method
Loss on cancellation of combined sharesthrough merger
Ⅳ Retains earnings at end of term

58,605910
910
59,515
101,337
9,171
9,101
70
4,536
2,330
48
129
1,843
182
105,973

Page 5 of 9

Consolidated Statements of Changes in Shareholders’ Equity for FY3/07
FY3/07 (April 1, 2006 – March 31, 2007)(¥ million)
Shareholders’ equity
Capitalstock

69,499Balance at March 31, 2006
Changes during the period
Dividends *1

Additional
paid-in
capitalRetainedearnings

Treasury
stock

Total
shareholders’equity59,515

105,973–1,752233,235

Dividends
Bonuses to directors and corporate auditors
Net income
Increase due to increase in consolidated
subsidiaries
Decrease due to increase in consolidated
subsidiaries
Increase due to merger of consolidated
subsidiaries
Reversal of land revaluation excess
Reversal of accrued retirement benefits todirectors and corporate auditors
Acquisition of treasury stock
Disposal of treasury stock
Changes in items other than shareholders’ equity(net)
Total changes during the period
Balance at March 31, 2007

–2,339–1,869–2,339–1,869–65
24,408–65
24,408

87

87

–87

–87

32

32

12

12

–24

–24

353

69,499353
59,86820,154
126,127

–271
354

–271
707

83
–1,66920,590253,826

Valuation and translation adjustments

Balance at March 31, 2006
Changes during the period
Dividends *1
Dividends
Bonuses to directors andcorporate auditors
Net income
Increase due to increase inconsolidated subsidiaries
Decrease due to increase inconsolidated subsidiaries
Increase due to merger ofconsolidated subsidiaries
Reversal of land revaluation
excess
Reversal of accrued retirement
benefits to directors andcorporate auditors
Acquisition of treasury stock
Disposal of treasury stock
Changes in items other thanshareholders’ equity (net)Total changes during the period
Balance at March 31, 2007

Unrealized
gain on othersecurities

Gain/loss ondeferred
hedge

Land
revaluation
excessForeigncurrencytranslation
adjustments

Accumulated
othercomprehensive
income (loss)

28,199

–

4,691

3,260

–

*2

Total
valuationandtranslation
adjustments

36,152

Minority
interests

Total net
assets35,768305,155–2,339–1,869–65
24,408
87
–87
32
12
–24
–271
707

–2,713

21

–13

7,460

–2,71321–13
7,460
25,48521
4,677
10,720*1 Appropriation of profit approved at general meeting of stockholders in June, 2006

–1,740

3,013

878

3,891

–1,740–1,7403,013
39,165878
36,64624,482
329,637*2 Appropriation of unfunded retirement benefit obligation due to change in accounting standards at overseas subsidiaries

Page 6 of 9

Consolidated Statements of Cash Flows
Term
Item
I
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of difference between equity in net assets ofconsolidated subsidiaries and investment cost
Amortization of goodwill
Equity in losses of unconsolidated subsidiaries andaffiliates
Stock valuation loss
One-time amortization of consolidation adjustments
Gain on return of retirement benefit trust
Decrease in accrued retirement benefits
Increase in accrued retirement benefits to directors andcorporate auditors
Increase in bonus reserve
Increase in bonus reserve for directors and corporate
auditors
Decrease in allowance for doubtful accounts
Increase/decrease in other reserves
Interest and dividends received
Interest expenses
Gain on sale of investment securities
Loss on sale of investment securities
Gain on changes of ownership in subsidiaries and affiliates
Loss on changes of ownership in subsidiaries and affiliates
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 in notes and accounts receivable
Increase in inventories
Increase/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(Unit: Millions of Yen)
FY3/06
Change4/1/05 –3/31/06

FY3/07
4/1/06 –3/31/07
50,86938,96019,471
38,61031,397
350

—

69

–69

946

—

946

3,339

5,545

–2,206839—–2,101–5,146

1,121
949—–2,613–281–949–2,101–2,533

85

9

76

404

371

32

65

—

65

–388
206
–2,835
11,460
–496
406
—
208
802
–2,5668,400
8,328–9,845–5,502–6,545–79
10,219100,035
2,913–11,576–28,758–90–6–4,306
11,228–13,899306–1,496—129–4,4358,389
33,435–6,335–1,2573,309–58–8,16880,280
4,557–10,808–12,569

–297
212
1,470
231
13,402
99
1,496
208
673
1,868
10
–25,106–3,510–4,245–9,855–20
18,38819,754–1,644–767–16,189

62,613

61,460

1,153

Page 7 of 9

Term
Item
II Cash flows from investing activities
Increase/decrease in time 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
Payments for sale of stock in subsidiaries due to change
in the scope of consolidation
Long-term loans madeCollections of long-term loans receivable
Other
Net cash provided by/used in investing activities

FY3/07
4/1/06 –3/31/07

FY3/06
4/1/05 –3/31/06

Change923–46,597
7,819
–341
3
–2,0491,154

694–41,898
16,334–871
1–14,003
14,660229–4,698–8,515529
1
11,953–13,505

–12

—

–12

–3,4304,976–147–4,640
5,460
1,636

1,209
–483
–1,783–37,702–22,627–15,074–37,067
11,00093,344–77,586
23,270–61,989
157
707
–271
–4,209–628–53,272–23,702—54,870–79,029
51,350–20,922
2,544
3,210
–256
–2,330–383–14,649–13,364
11,00038,474
1,442–28,080–41,067–2,387–2,502–14–1,878–244–38,623

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

598–27,761
93,4891,758
25,941
67,473–1,159–53,702
26,016

–90

–203

113

19

279

–259

IX Cash and cash equivalents at end of term

65,657

93,48927,832

III Cash flows from financing activities
Net decrease in short-term borrowings
Net increase in commercial paper
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

Page 8 of 9

Segment Information
Segment information(Unit: Millions of Yen)
MineralCementEnvironmental
Resources
Business
Business
Business
Sales and operating
incomeSales(1) Sales to565,520
outsidecustomers(2) Intersegment
14,464
sales andtransfers
Total
579,985
Operating519,791
expenses
Operating60,193incomeFY3/07 (4/1/06 – 3/31/07)
Construction Ceramics &Materials Electronics Other
Business
Business

Total

Eliminations
Consolidated
or corporate
total
assets78,52962,322

96,62966,91270,715

940,630(—)

940,630

23,002

5,381

8,584

7

45,57597,015(97,015)—

101,531

67,704105,214

66,919 116,291 1,037,646(97,015)940,630

97,01364,952

102,466

65,903 109,694

959,821(95,884)

863,937

4,518

2,752

2,747

1,015

77,824(1,131)

76,692

6,597

Overseas sales

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

North America
127,642—
13.6%(Unit: Millions of Yen)
FY3/07 (4/1/06 – 3/31/07)
Asia
Other
Total
89,096
16,352233,091——
940,630
9.5%
1.7%
24.8%

Page 9 of 9