Outline of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Second Quarter of Fiscal 2021 ending March 31, 2021
November 10, 2020

Company: Taiheiyo Cement Corporation
Fiscal 2020 2Q
Stock code: 5233
Fiscal 2020
URL:
https://www.taiheiyo-cement.co.jp/english/index.html Fiscal 2021 2Q
Fiscal 2021

: April 1, 2019 through September 30, 2019
: April 1, 2019 through March 31, 2020
: April 1, 2020 through September 30, 2020
: April 1, 2020 through March 31, 2021

The accompanying consolidated financial results are not intended to present the financial results in accordance withaccounting 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 2021 (April 1, 2020 through September 30, 2020)(% of change from previous year)(1) Operating Results
Profit attributable toNet Sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Fiscal 2021 2Q
420,627(2.5)
26,126
16.3
26,64018.6
18,461
13.9Fiscal 2020 2Q
431,389(1.7)
22,463(18.0)
22,470(17.1)
16,202(6.6)* Comprehensive income : Fiscal 2021 2Q 19,496 (+58.7%) Fiscal 2020 2Q 12,283(-19.7%)

Earnings per share
Diluted earnings per share
Yen
Yen
152.23132.38-Fiscal 2021 2Q
Fiscal 2020 2Q(2) Financial Position

Total assets
Millions of yen
1,055,503
1,032,923

Fiscal 2021 2Q
Fiscal 2020

* Equity : Fiscal 2021 2Q 446,281

Total net assets
Millions of yen
483,338
473,241

Equity ratio%
42.3
42.3

Fiscal 2020 436,678

2. DividendsDividend per share

Fiscal 2020
Fiscal 2021
Fiscal 2021(forecast)

1Q

2Q

3Q

4Q

Total

Yen-Yen
30.00
30.00

Yen-Yen
30.00

Yen
60.00

-

30.00

60.00

3. Consolidated Financial Results Forecast for the Fiscal 2021 (April 1, 2020 through March 31, 2021)(% of change from the corresponding period of the previous year)

Net sales
Millions of yen

Full year

867,000

Operating income% Millions of yen(2.0)
63,000%
3.3

Profit attributable toowners of parent% Millions of yen%
4.1
41,000
4.7

Ordinary income
Millions of yen

63,000Earnings
per shareYen
339.20* This forecast is based on the information available at the date of publication of this material and assumptions at the same date withrespect to the various factors which might have impact on the future financial results. Actual results may differ materially from thisforecast due to various factors.

Page 1 of 8

Consolidated Balance Sheets(Millions of yen)
Fiscal 2020

Fiscal 2021 2Q(As of March 31, 2020)(As of September 30, 2020)

AssetsCurrent assets
Cash and deposits

51,641

82,443

Notes and accounts receivable - trade

159,048

151,032

Electronically recorded monetary claims - operating

13,507

15,111

Merchandise and finished goods

30,89728,644Work in process

2,310

2,891

Raw materials and supplies

45,07545,830Other

17,324

16,366

Allowance for doubtful accounts(1,302)(833)

Total current assets

318,502341,487

Buildings and structures, net

138,947

137,806

Machinery, equipment and vehicles, net

162,944

159,411Land

164,869

165,421

Non-current assets
Property, plant and equipment

Other, net

77,79280,951

Total property, plant and equipment

544,553

543,590

Intangible assets
Goodwill

179

215Other

29,63429,070Total intangible assets

29,81429,285Investment securities

82,931

86,317Retirement benefit asset

11,09011,475Investments and other assets

Other52,358

49,617

Allowance for doubtful accounts(6,327)(6,269)Total investments and other assets

140,053

141,140

Total non-current assets

714,420714,016

1,032,923

1,055,503

Total assets

Page 2 of 8

(Millions of yen)
Fiscal 2020

Fiscal 2021 2Q(As of March 31, 2020)(As of September 30, 2020)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

83,43076,289

5,330

5,640

Short-term borrowings

120,783

143,617

Commercial papers

12,00019,000Current portion of bonds payable-10,000

Income taxes payable

6,024

5,606

Provision for bonuses

6,158

6,213

139

103

Other provisions
Other

79,906

77,595

Total current liabilities

313,771

344,066

Bonds payable

30,00020,000Long-term borrowings

103,332

96,664Retirement benefit liability

Non-current liabilities

24,99924,298Provision for retirement benefits for directors

521

444

Provision for special repairs

128

154

Other provisions

828

538

Asset retirement obligations

7,341

7,578

Other

78,75878,421

Total non-current liabilities

245,910228,098

Total liabilities

559,682

572,165

86,174

86,174

Net assets
Shareholders' equity
Share capital
Capital surplus

60,23360,291Retained earnings

326,086

340,871

Treasury shares(16,098)(21,104)

Total shareholders' equity

456,395

466,233

6,723

8,808

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment

(0)

(0)

4,968

4,968

(21,413)(24,225)

Remeasurements of defined benefit plans(9,995)(9,502)

Total accumulated other comprehensive income(19,716)(19,951)

Non-controlling interests

36,56337,057

Total net assets

473,241

483,338

1,032,923

1,055,503

Total liabilities and net assets

Page 3 of 8

Consolidated Statements of Income(Millions of yen)
Fiscal 2020 2Q

Fiscal 2021 2Q(April 1, 2019 throughSeptember 30, 2019)(April 1, 2020 throughSeptember 30, 2020)

Net sales431,389

420,627

Cost of sales

342,745

331,929

Gross profit

88,643

88,697

Selling, general and administrative expenses

66,17962,570Operating income

22,463

26,126

Non-operating income
Interest income

243

244

Dividend income

819

859

Share of profit of entities accounted for using equity method

1,503

1,075

Other

1,330

1,530

Total non-operating income

3,896

3,709

Interest expenses

2,023

1,814

Other

1,866

1,382

Non-operating expenses

Total non-operating expenses

3,889

3,196

Ordinary income

22,47026,640Gain on disposal of non-current assets

547

2,374

Gain on sales of investment securities

78-

Extraordinary income

Compensation income
Other
Total extraordinary income

2,730-

3390

3,390

2,465

1,811

1,647-

548

316

401

Extraordinary losses
Loss on disposal of non-current assets
Loss on temporary suspension of operations
Other
Total extraordinary losses

2,127

2,598

Profit before income taxes

23,73326,507

Income taxes

6,609

6,604

Profit17,124

19,903

Profit attributable to non-controlling interests
Profit attributable to owners of parent

922

1,441

16,202

18,461Page 4 of 8Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitFiscal 2020 2Q

Fiscal 2021 2Q(April 1, 2019 throughSeptember 30, 2019)(April 1, 2020 throughSeptember 30, 2020)

17,124

19,903

(668)

2,169

2(0)

(4,251)(2,935)

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

261

478

Share of other comprehensive income of entities accounted for using equity method

(185)

(118)

Total other comprehensive income(4,840)(406)

Comprehensive income

12,283

19,496

11,92818,226355

1,269

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Page 5 of 8

Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2020 2Q

Fiscal 2021 2Q(April 1, 2019 throughSeptember 30, 2019)(April 1, 2020 throughSeptember 30, 2020)

Profit before income taxes

23,73326,507

Depreciation

22,642

25,7424325(1,503)(1,075)

Cash flows from operating activitiesAmortization of goodwill
Share of loss (profit) of entities accounted for using equity method
Loss(gain) on valuation of short-term and long-term investment securities

2332

Decrease (increase) in net retirement benefit asset and liability

(834)

(520)

Increase (decrease) in provision for retirement benefits for directors

(68)

(77)

Increase (decrease) in provision for bonuses

8554

Increase (decrease) in allowance for doubtful accounts

(38)

106

Increase (decrease) in other provisions

29

(300)

Interest and dividend income(1,062)(1,103)

Interest expenses

2,0231,814

Loss (gain) on sales of investment securities(78)-Loss (gain) on disposal of non-current assets

1,263(726)Decrease (increase) in trade receivables

21,274

6,254

Decrease (increase) in inventories(3,422)

72

Increase (decrease) in trade payables(19,444)(6,828)Other, net

137

5,021

Subtotal

44,80454,999Interest and dividends received

1,592

1,602

Interest paid

(2,121)(1,871)

Income taxes paid

(8,709)(5,977)

Net cash provided by (used in) operating activities

35,56648,753(135)(2,902)

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of non-current assets(34,094)(30,402)

Proceeds from sales of non-current assets

874

3,973

Purchase of investment securities

(78)

(27)

Proceeds from sales of investment securities

245

13

Loan advances(1,244)(1,608)

Collection of loans receivable

1,417

1,252

Other, net
Net cash provided by (used in) investing activities

(162)

(38)

(33,178)(29,740)

Page 6 of 8

(Millions of yen)
Fiscal 2020 2Q

Fiscal 2021 2Q(April 1, 2019 throughSeptember 30, 2019)(April 1, 2020 throughSeptember 30, 2020)

Net increase (decrease) in short-term borrowings

4,151

21,757

Increase (decrease) in commercial papers

17,0007,000

Proceeds from long-term borrowings

16,29014,980

Repayments of long-term borrowings(29,507)(20,315)

Redemption of bonds(10,000)-Cash flows from financing activities

Purchase of treasury shares(11)(5,038)(3,681)(3,676)

(555)

(752)

Other, net(3,663)(4,584)

Net cash provided by (used in) financing activities(9,978)9,372(352)(367)Dividends paid
Dividends paid to non-controlling interests

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(7,942)28,017

Cash and cash equivalents at beginning of period

50,08445,748Cash and cash equivalents at end of period

42,14173,765

Page 7 of 8

Consolidated Segment Information
Fiscal 2020 2Q (April 1, 2019 through September 30, 2019)【Industry Segments】(Millions of yen)
Reportable Segments
CementBusiness

MineralResources
Business

Environmental
Business

Construction
Materials
BusinessTotal

OtherTotalConsolidated
Total

Adjustment

Net sales
Sales to outside
customers

303,363

27,294

38,25137,023405,933

25,456431,389-

431,389

Inter-segment
sales
Total

5,232

12,166

3,285

2,015

22,701

11,17033,871(33,871)-308,596

39,461

41,53739,039428,634

36,626465,261(33,871)431,389

Segment income

12,288

3,230

3,546

1,951

21,016

1,337

22,354

109

22,463Fiscal 2021 2Q (April 1, 2020 through September 30, 2020)【Industry Segments】(Millions of yen)
Reportable Segments
CementBusiness

MineralResources
Business

EnvironmentalBusiness

Construction
Materials
Business

Total

Other

Total

Consolidated
Total

Adjustment

Net sales
Sales to outside
customers

300,401

25,30533,04732,417391,172

29,455

420,627-

420,627

Inter-segment
sales
Total

4,975

11,576

4,675

2,101

23,329

11,20734,536(34,536)-

305,376

36,882

37,72334,518414,501

40,662455,163(34,536)

420,627

Segment income

16,898

2,611

2,826

867

23,204

2,917

26,122

4

26,126

Page 8 of 8