Summary of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Fiscal 2017 Ended March 31, 2017
May 11, 2017
Company:
Stock code:
URL:

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

Fiscal 2016:
Fiscal 2017:
Fiscal 2018:

April 1, 2015-March 31, 2016
April 1, 2016-March 31, 2017
April 1, 2017-March 31, 2018

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 Fiscal 2017(April 1, 2016 through March 3, 2017)(1) Operating Results
Net Sales
FY3/17
FY3/16

Operating income

Millions of Yen
798,588835,359%

Millions of Yen
63,23560,433△4.4△0.9*comprehensive income : Fiscal 2017

51,000EPS

Diluted EPS
Yen
38.39
29.63

FY3/17
FY3/16%
4.6△7.6

Fiscal 2016

Profit attributable to
Owners of parent
Millions of Yen% Millions of Yen%
59,802 △0.7
47,59730.760,225 △11.3
36,404 △17.5
Ordinary income

21,971
ROE

Yen
―
―

ROA
%
14.0
11.7

*equity in earnings (losses) of unconsolidated subsidiaries and affiliates Fiscal 2017

%
5.9
5.9

2,009

Fiscal 2016

Operating income
to net sales
%
7.9
7.2

5,292

(2) Financial Position
Total assets
Millions of Yen
1,015,415
1,014,075

FY3/17
FY3/16*Equity : Fiscal 2017

361,819

Total net assets
Millions of Yen
400,034
357,073

Fiscal 2016

Equity ratio

Equity per share
Yen
293.02259.11

%
35.6
31.4

318,285(3) Consolidated Cash Flows
Cash flows fromoperating activities
Millions of Yen
85,98575,627

FY3/17
FY3/16

Cash flows frominvesting activities
Millions of Yen△1,945△71,099

Cash flows fromfinancing activities
Millions of Yen△81,855△4,027

Cash and cash equivalents
at end of year
Millions of Yen
51,97450,072

2. Dividends
Dividend per share
Total amount of
cash
dividends(annual)

1Q

2Q

3Q

4Q

Total

Yen

Yen

Yen

Yen

Yen

Millions of Yen

FY3/16
FY3/17

―
―

3.00
3.00

―
―

3.00
3.00

6.00
6.00

7,415
7,515

FY3/18(forecast)

―

3.00

―

3.00

6.00

Dividend ratio(consolidated)

Ratio of total amountof dividends toshareholder’sequity(consolidated)

%
20.2
15.6

%
2.4
2.2

21.2

3. Consolidated Results Forecast for the Fiscal 2018 (April 1, 2017 through March 31, 2018)
Operating income

Net sales

Ordinary income

Profit attributable to
Owners of parent

EPS

%

Yen

22,000%
5.8

Millions of Yen

23,000%
7.2

Millions of Yen

1HFY3/18%
7.7

Millions of Yen

406,000

13,000

△69.2

10.53

FY3/18853,000

6.8

65,0002.8

61,0002.0

35,000

△26.5

28.34

Millions of Yen

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 9

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
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
A. Property, plant and equipment
Buildings and structures, net
Machinery, equipment, and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
B. Intangible assets
Goodwill
Other
Total intangible assets
C. Investments and other assets
Investment securities
Long-term loans receivable
Assets for retirement benefits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

FY3/16(As of 3/31/16)

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

53,539161,392
31,187
1,485
42,624
6,886
3,018
9,721
(938)
308,918

60,516
171,946
31,835
1,708
42,422
9,098
3,896
12,595(1,125)332,895

132,708
147,151
140,726
20,95046,074
487,611

136,454
135,380
160,571
19,08345,660497,151

6,432
37,48743,9193,409
34,25037,660115,443
1,127
8,968
23,25831,483(6,655)
173,626
705,156
1,014,075

84,781
3,238
17,352
19,056
31,613(8,333)
147,708
682,520
1,015,415

Page 2 of 9

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
Current portion of bonds
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Other provision
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Liability for retirement benefits
Provision for directors’ retirement benefits
Provision for special repairs
Other provision
Lease obligations
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

FY3/16(As of 3/31/16)

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

73,893
160,421
450
8,351
5
5,723
751
71,631
321,229

79,676
134,428
11,120
5,914
4
5,742
410
71,613308,910

46,155
187,471
3,527
22,814433
245
747
15,662
7,990
50,725
335,772
657,002

35,035160,346
8,378
24,217568
121
981
21,285
7,520
48,013
306,469
615,380

86,17450,925
188,731(979)
324,851

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

4,755

9,830

16
4,665
(4,174)(11,829)48
5,065(12,862)(3,987)(6,566)(1,906)38,787

38,215357,073

400,034

1,014,075

1,015,415

Page 3 of 9

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

(Millions of Yen)
FY3/16(4/1/153/31/16)
835,359

FY3/17(4/1/163/31/17)
798,588

Cost of sales

640,375

599,924

Gross profit

194,983

198,664

Selling, general and administrative expenses

134,550

135,429

Operating income

60,433

63,235Interest income

604

690

Dividends income

959

959

Real estate rent

384

311

5,292

2,009

Item
Net sales

Non-operating income

Equity in earnings of unconsolidated subsidiaries
and affiliates
Other

4,216

1,916

11,456

5,888Interest expenses

6,492

4,998

Other

5,172

4,321

11,664

9,320

60,22559,802

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on disposal of property, plant, and equipment

1,666

648

Gain on sales of investment securities

1,325

4,012

-

16,874Gain on bargain purchase
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of property, plant, and equipment
Loss on sale of investment securities
Loss on valuation of investment securities
Impairment loss
Loss on step acquisitions

290

126

3,282

21,661

3,205
81

3,965
24

374

68

5,757

20,693

-

3,034

1,497

936

10,91528,723

Income before income taxes and non-controlling interests

52,592

52,741

Income taxes-current

14,334

8,830

Income taxes-deferred

678(3,646)

Profit37,57947,556

Profit attributable to non-controlling interests

1,175

(40)

Profit attributable to owners of parent

36,40447,597

Other
Total extraordinary losses

Page 4 of 9

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

(Millions of Yen)

Item
ProfitFY3/16(4/1/153/31/16)

FY3/17(4/1/163/31/17)

37,57947,556(1,864)

3,721

Deferred gains or losses on hedges

(5)

18

Revaluation reserve for land237-

Foreign currency translation adjustment(2,869)(8,851)Remeasurements of defined benefit retirement plans, net of tax(7,728)(7,966)

Share of other comprehensive income of associates accounted
for using equity method(3,378)588

Total other comprehensive income(15,608)

3,443

21,97151,00021,75852,257212(1,257)

Other comprehensive income
Valuation difference on available-for-sale securities

Comprehensive income
Comprehensive income attributable to :Owners of parent
Non-controlling interests

Page 5 of 9

Consolidated Statements of Changes in Net Assets
FY3/16(4/1/15-3/31/16)
All yen figures are rounded down to the nearest one million yen(Millions of Yen)
Shareholders' equity
Capital stock

Capital surplus

86,17450,757

Balance at pre end of term

Retainedearnings

Treasury stock

Total
shareholders’equity(934)

294,937

158,939

Changes of items during period
Change in treasury shares of parent arising from

167

167

transactions with non-controlling shareholders
Dividends of surplus(7,370)(7,370)

Profit attributable to owners of parent

36,40436,40414

14

Reversal of revaluation reserve for land
Purchase of treasury stock0

Disposal of treasury stock

(46)

(46)

0

0

743

Change in scope of consolidation

743

Change by share exchanges
Increase by merger of consolidated subsidiary andnon- consolidated subsidiary
Net changes of items other than shareholders’equityTotal changes of items during the period
Balance at end of this term―

167

29,791(45)

29,914

86,17450,925

188,731(979)

324,851

Total othercomprehensive
incomeNoncontrollinginterests

Total net
assets

7,707

44,845

347,490

Accumulated other comprehensive income
Valuationdifference
on availablefor-salesecurities
Balance at pre end of term

6,908

Deferred gains Revaluationorreserve forlosses on
landhedges2

4,295Foreigncurrencytranslation
adjustment

649

Retirement
benefits
liability
adjustments(4,148)Changes of items during period
Change in treasury shares ofparent arising from167

transactions with noncontrolling shareholders(7,370)

Dividends of surplus
Profit attributable to owners

36,404of parent
Reversal of revaluation

14

reserve for land
Purchase of treasury stock(46)

Disposal of treasury stock0

Change in scope of743

consolidation
Change by share exchanges
Increase by merger ofconsolidated subsidiary andnon- consolidated subsidiary
Net changes of items otherthan shareholders’ equity
Total changes of items during the(2,153)14369(4,823)(7,680)(14,274)(6,057)(20,331)(2,153)14369(4,823)(7,680)(14,274)(6,057)

9,582

4,755

16

4,665

(4,174)(11,829)(6,566)38,787357,073

periodBalance at end of this term

Page 6 of 9

FY3/17(4/1/16-3/31/17)
All yen figures are rounded down to the nearest one million yen(Millions of Yen)
Shareholders' equity
Capital stock

Capital surplus

86,17450,925

Balance at pre end of term

Retainedearnings

Treasury stock

Total
shareholders’equity(979)

324,851

188,731

Changes of items during period
Change in treasury shares of parent arising from

(88)

(88)

transactions with non-controlling shareholders
Dividends of surplus(7,474)(7,474)

Profit attributable to owners of parent

47,59747,597

Reversal of revaluation reserve for land

(10,045)(10,045)

546

482

1,029

8,165

(369)

7,795

Purchase of treasury stock
Disposal of treasury stock
Change in scope of consolidation
Change by share exchanges
Increase by merger of consolidated subsidiary and59

59

non- consolidated subsidiary
Net changes of items other than shareholders’equityTotal changes of items during the period
Balance at end of this term

―

8,623

40,182(9,932)38,87386,17459,548228,914(10,911)363,725

Accumulated other comprehensive income
Valuationdifference
on availablefor-salesecurities
Balance at pre end of term

4,755

Deferred gains Revaluationorreserve forlosses on
landhedges16

4,665

Foreigncurrencytranslation
adjustment(4,174)Retirement
benefits
liability
adjustments(11,829)

Total othercomprehensive
incomeNoncontrollinginterests

Total net
assets(6,566)38,787357,073

Changes of items during period
Change in treasury shares ofparent arising from(88)

transactions with noncontrolling shareholders(7,474)

Dividends of surplus
Profit attributable to owners

47,597of parent
Reversal of revaluation-

reserve for land
Purchase of treasury stock(10,045)

Disposal of treasury stock

1,029

Change in scope of-

consolidation

7,795

Change by share exchanges
Increase by merger of59

consolidated subsidiary andnon- consolidated subsidiary
Net changes of items otherthan shareholders’ equity
Total changes of items during the

5,074

31

400

(8,688)

7,842

4,660

(571)

4,088

5,074

31

400

(8,688)

7,842

4,660

(571)

42,961

9,830

48

5,065

(12,862)(3,987)(1,906)

38,215400,034

periodBalance at end of this term

Page 7 of 9

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

Item
Cash flows from operating activities:
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Share of (profit) loss of entities accounted for using equity method
Loss (gain) on valuation of investment securities
Increase (decrease) in net defined benefit asset and liability
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for removal of assets
Increase (decrease) in other provisionInterest and dividends income
Interest expenses
Loss (gain) on sales of investment securities
Loss (gain) on disposal of non-current assets
Impairment loss
(Increase) Decrease in notes and accounts receivable-trade
Decrease in inventories
Decrease in notes and accounts payable-trade
Loss (gain) on step acquisitions
Gain on bargain purchase
Other, net
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 other depreciated assets
Proceeds from sales of other depreciated assets
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Proceeds from sales of investments in subsidiaries resulting from change inscope of consolidation
Payments from sales of investments in subsidiaries resulting from change inscope of consolidation
Payments of loans receivableCollection of loans receivable
Payments for transfer of business
Other, net
Cash flows from investing activities:

FY3/16(4/1/15-3/31/16)(Millions of Yen)
FY3/17(4/1/16-3/31/17)

52,592
43,957
2,967(5,292)374(1,027)
(32)
509
(689)
(41)
(158)
(1,563)
6,492(1,243)
1,539
5,757
7,259
(3,694)(6,525)(4,268)96,9101,971(6,599)(16,655)
75,62752,74144,4592,518(2,009)
68
3,648
107
(29)
826
(601)
(1,650)
4,998(3,988)3,317
20,693(3,236)
(267)
1,200
3,034
(16,874)(8,551)
100,405
2,046(5,006)(11,460)
85,985(350)(35,922)
6,061
(128)
0
(342)
995
6,747

(4,855)(40,190)
4,276(1,995)66(870)
41,062-(1,040)(693)
3,510(50,863)927(71,099)(3,950)3,826
685(1,945)(9,798)(5,000)105,866(60,055)(20,395)
0(43)(7,370)(1,015)(6,216)(4,027)(23,513)
15,253(51,609)
(450)
1,400
1,144
(10,045)(7,474)(639)(5,921)(81,855)(510)(1,474)(10)
50,645(596)

710
50,072
-

-

1,108

138

83

Cash flows from financing activities:
Net increase(decrease) in short-term loans payable
Increase(decrease) in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from share issuance to non-controlling shareholder
Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Cash flows from financing activities:
Effect of exchange rate change on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from change ofscope of consolidation
Increase in cash and cash equivalents resulting from share exchanges
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Increase(decrease) in cash and cash equivalents from corporate division
Cash and cash equivalents at end the period

(105)

-

50,072

51,974

Page 8 of 9

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

[Industry Segments]

Net sales(1) Net sales tooutsidecustomers(2) Intersegment
net sales
Total
Segment
operating profit(Millions of Yen)
FY3/17 (4/1/16– 3/31/17)
Construction
Environmental
Materials
Other
Business
Business

CementBusiness

MineralResources
Business

546,891

58,55970,40569,912

52,81912,023

21,617

7,495

4,114

558,915

80,177

77,901

38,898

7,759

7,666

Eliminations

Consolidated
total

798,588－798,588

22,511

67,762(67,762)－

74,02775,331

866,351(67,762)

798,588

6,061

3,267

63,654(418)

63,235Total

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

[Geographic segments]
Japan

America

Other(Millions of Yen)
Total

Net sales

606,996

111,186

80,405

798,588

Noncurrent
assets346,686

103,831

46,634

497,151

Page 9 of 9