Reference Materials of Financial Results
for the Nine Months Ended December 31, 2022

February 9, 2023

Page 0Contents
1. Highlights of Consolidated Financial Results

Page 2

2. Financial Results for the Nine Months EndedDecember 31, 2022

Page 3(1) Consolidated Segment Information(2) Consolidated Statements of Income(Items below Operating Profit)(3) Consolidated Balance Sheets
3．Forecast for the Fiscal 2023

Page 8(1) Consolidated Statements of Income(2) Consolidated Segment Information

Page 1

1. Highlights of Consolidated Financial Results(Million yen)

FY2022Nine monthsFY2023
Nine months

Net sales

527,890

600,348

72,458Operating profit

39,641

3,392(36,248)

Ordinary profit

41,701

3,526(38,175)

Profit attributable to owners of parent

29,585(17,665)(47,251)＜Indexes＞
Capital adequacy ratio (%)
Capital adequacy ratio based on market value (%)
Net assets per share (Yen)

Basic earnings per share (Yen)

As of Mar. 31, As of Dec. 31,
2022
2022
46.3
40.1
21.4

ChangeChange(6.2)

18.1

(3.3)

4,362.2
4,559.0
FY2022
FY2023Nine months Nine months
250.3(150.9)196.8
Change(401.2)

Page 2

2. Financial Results for the Nine Months
Ended December 31, 2022

(Million yen)

Operating profit

Net sales
FY2023
FY2022Nine months Nine months

ChangeFY2023
FY2022Nine months Nine months

ChangeDomestic

179,480

193,973

14,493

2,424(26,623)(29,047)

Overseas Subsidiaries, etc.

167,331

216,042

48,711

20,64016,769(3,871)

Total

346,811410,016

63,20523,065(9,854)(32,919)

Mineral Resources Business

57,83762,402

4,565

4,712

4,491

(220)

Environmental Business

53,55559,174

5,619

4,920

4,458(461)Construction Materials Business

48,07849,614

1,535

2,972

1,206

(1,766)

Other

64,62463,451(1,172)

4,301

2,737

(1,563)

Total

570,906

644,659

73,752

39,9703,039(36,931)

Elimination(43,016)(44,311)(1,294)

(329)

352

682

Consolidated Total

527,890

600,348

72,45839,641

3,392(36,248)

CementBusiness

Page 3

2. Financial Results for the Nine Months
Ended December 31, 2022
(1) Consolidated Segment Information
Sales Volume of Cement
FY2022Nine months

Average Exchange Rate Applied(Thousand tons) by Overseas Subsidiaries
FY2023
FY2022
FY2023
ChangeNine months
Nine months Nine months

Domestic

10,246

10,089(156)

Export3,059

2,029(1,030)

108.6

128.3

(Yen/US$)
Change19.7

Cement Business

Net Sales

Domestic(Million yen)
FY2022Nine months

FY2023Nine months

179,480

193,973

ChangeMain Factors of Changes in Net Sales and Operating Profit

14,493 Decrease in sales volume of domestic cement and soil stabilizers -2.5 billion yen
Decrease in export cement volume -5.1 billion yen
Price difference in domestic cement and soil stabilizers +13.8 billion yen
Price difference in export cement +6.0 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc. +2.2 billion yen

Overseas
Subsidiaries, etc.
Total
Operating Profit Domestic

167,331

216,042

48,711 U.S.A. +US$173 million, China -US$38 million, Asia and other +US$23 million
Effect of foreign exchange, etc. +31.6 billion yen

346,811410,016

63,205

2,424(26,623)(29,047) Decrease in sales volume of domestic cement and soil stabilizers -0.8 billion yenDecrease in export cement volume -2.0 billion yen
Price difference in domestic cement and soil stabilizers +13.1 billion yen
Increase in net export cement revenue +4.1 billion yen
Increase in variable cost -40.4 billion yen
Increase in fixed cost -1.5 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed concrete, etc. -1.6 billion yen

Overseas
Subsidiaries, etc.
Total

20,64016,769(3,871) U.S.A. -US$25 million, China -US$17 million, Asia and other -US$20 million

23,065(9,854)(32,919)

Effect of foreign exchange, etc. +2.8 billion yen

Page 42. Financial Results for the Nine Months
Ended December 31, 2022
(1) Consolidated Segment Information
Reportable Segments (Excluding Cement Business) and Other(Million yen)
FY2022Nine months

FY2023Nine months

57,83762,402

Change(Million yen)

Main Factors of Changes in Net Sales and Operating Profit

4,565 Aggregate business remained strong mainly in the Kanto and Chubu region

MineralResources
Business

Net Sales
Operating Profit

4,712

4,491(220) Decrease due to various cost increase

EnvironmentalBusiness

Net Sales53,555

59,174

5,619 Sales of calcium carbonate used for flue gas desulfurization and sales of fuel remained strong

Operating Profit

4,920

4,458(461) Profitability of biomass fuel business deteriorated due to foreign exchange effects

Net Sales

48,07849,614

1,535 Sales of ALC (Autoclaved Lightweight Concrete) and contruction materials remained strong despite sales of groundConstruction
Materials
Business

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

improvement projects remained sluggish

Operating Profit

2,972

1,206(1,766) Rapid rise in raw material prices
Decrease in sales of ground improvement projects

OtherNet Sales

64,62463,451(1,172)

Operating Profit

4,301

2,737

(1,563)

Page 5

2. Financial Results for the Nine Months
Ended December 31, 2022
(2) Consolidated Statements of Income (Items below Operating Profit)(Million yen)

FY2022Nine months
39,641

FY2023Nine months
3,392

Non-operating income and expenses

2,060

133

(1,926)

Ordinary profit

41,701

3,526(38,175)418(2,432)(2,850)

Profit before income taxes

42,1201,094(41,026)

Income taxes

10,974

17,952

6,977

Profit attributable to non-controlling interest

1,560

807

(752)

Profit attributable to owners of parent

29,585(17,665)(47,251)

Operating profit

Extraordinary income and losses

Change(36,248)

Page 6

2. Financial Results for the Nine Months
Ended December 31, 2022
(3) Consolidated Balance Sheets(Million yen)

Change143,178

184,795

41,617

94,189138,60244,412

Other

42,91058,55915,648

Total current assets

340,550

470,881130,330

Total property, plant and equipment

557,829

639,220

81,390Total intangible assets

27,56642,003

14,437

Total investments and other assets

177,061

179,432

2,371

Total non-current assets

762,457

860,656

Total assets

1,103,007

1,331,537

As of Dec.
31, 2021

As of Sep.
31, 2022

Change115.02144.81

29.79

Exchange rate at end of period (Yen/US$)

98,199As of Mar. As of Dec.
31, 2022
31, 2022
309,768
448,809

Change139,041

Non-current liabilities

248,440

310,550

62,109Total liabilities

558,208759,360

201,151

Share capital

86,174

86,174-Capital surplus

49,72949,724(4)Retained earnings

384,154358,424(25,729)

Treasury shares(13,766)(13,734)

31

Total shareholders' equity

506,291

480,589(25,702)

Accumulated other comprehensive income

4,325

53,06848,743

Non-controlling interests

34,181

38,518

4,336

Total net assets

544,799

572,176

27,377

1,103,007

1,331,537

228,529

As of Mar.
31, 2022

As of Dec.
31, 2022

270,587

393,635

Shareholders' equity

Notes and accounts receivable - trade,and contract assets
Inventories

Current liabilities
Liabilities

28,651

Net assets

Non-current assets

Current assets

Cash and deposits

As of Mar. As of Dec.
31, 2022
31, 2022
60,271
88,923

228,529 Total liabilities and net assets

Interest-bearing debt (Million yen)

Change123,048

Page 7

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

Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent

FY2022
FY2023
Change(Actual)(Forecast)
7,082
8,100
1,018
467
40(427)501
30(471)289(260)(549)＜Preconditions＞
Domestic demand of cement (Ten thousand tons)

3,788

3,740

(48)

Page 8

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)CementBusiness

FY2023(Forecast)

Operating profit
FY2022(Actual)ChangeFY2023(Forecast)

ChangeDomestic

2,374

2,630

256

(18)

(370)

(352)

Overseas Subsidiaries, etc.

2,257

2,970

713

260

223

(37)

Total

4,632

5,600

968

241(147)(388)

Mineral Resources Business

771

850

796058(2)Environmental Business

723

780

5766

57

(9)

Construction Materials Business

650

690

40

34

19(15)

Other890

870

(20)

6952(17)

Total

7,668

8,790

1,122472

39(433)Elimination

(586)

(690)

(104)

(5)

16

Consolidated Total

7,082

8,100

1,018

467

40(427)

Page 93．Forecast for the Fiscal 2023
(2) Consolidated Segment Information
Sales Volume of Cement
FY2022(Actual)(Thousand tons)

FY2023(Forecast)

ChangeDomestic

13,363

13,200(163)

Export4,147

2,580(1,567)

Average Exchange Rate Appliedby Overseas Subsidiaries

FY2022(Actual)FY2023(Forecast)

Change

109.9

131.6

21.7

Cement Business
Net Sales

Domestic(Yen/US$)(Hundred million yen)

FY2022
FY2023(Actual)(Forecast)
2,374
2,630

ChangeMain Factors of Changes in Net Sales and Operating Profit

256 Decrease in sales volume of domestic cement and soil stabilizers -2.3 billion yen
Decrease in export cement volume -8.3 billion yen
Price difference in domestic cement and soil stabilizers +25.1 billion yen
Price difference in export cement +6.8 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc. +4.3 billion yen

Overseas
Subsidiaries, etc.
Total
Operating Profit Domestic

2,257

2,970

713 U.S.A. +US$263 million, China -US$67 million, Asia and other +US$28 million

4,632

5,600968(18)(370)(352) Decrease in sales volume of domestic cement and soil stabilizers -0.8 billion yen

Effect of foreign exchange, etc. +47.0 billion yen

Decrease in export cement volume -2.8 billion yen
Price difference in domestic cement and soil stabilizers +23.3 billion yen
Increase in net export cement revenue +5.5 billion yen
Increase in variable cost -53.6 billion yen
Increase in fixed cost -4.1 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed concrete, etc. -2.7 billion yen

Overseas
Subsidiaries, etc.

260

Total241

223(37) U.S.A -US$14 million, China -US$31 million, Asia and other -US$26 million
Effect of foreign exchange, etc. +4.1 billion yen

(147)

(388)

Page 10

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 11