Reference Materials of Financial Results
for the Six Months Ended September 30, 2022

November 10, 2022

Contents
1. Highlights of Consolidated Financial Results

Page 2

3. Forecast for the Fiscal 2023

Page 9(1) Consolidated Statements of Income
2. Financial Results for the Six Months Ended
September 30, 2022
(1) Consolidated Segment Information

Page 3(2) Consolidated Segment Information

4. Reference Information(2) Consolidated Statements of Income(Items below Operating Profit)(3) Consolidated Balance Sheets(2) Change in Capital Investment(4) Consolidated Statements of Cash Flows(3) Change in Depreciation Expenses

Page 12(1) Change in Interest-bearing Debt

(4) Change in Research and Development Expenses(5) Sales Volume of Cement in Overseas Subsidiaries(6) Overview of Businesses in the U.S.A.

Page 1

1. Highlights of Consolidated Financial Results
FY 2020

Change(Million yen)

FY2022Six months

FY2023Six months

ChangeNet sales

339,798

375,982

36,184

Operating profit

25,812(313)(26,126)

Ordinary profit

26,578(84)(26,663)

Profit attributable to owners of parent

19,485(16,455)(35,940)

FY 2019＜ Indexes＞

Capital adequacy ratio (%)
Capital adequacy ratio based on market value (%)
Net assets per share (Yen)

Basic earnings per share (Yen)FY 2020

ChangeAs of Mar. 31, As of Sep. 30,
2022
2022
46.3
41.3

Change(5.0)

21.4

18.7

(2.7)

4,362.2
FY2022Six months
163.9

4,492.3
FY2023Six months(140.6)130.1
Change(304.5)

Page 2

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

Net sales
FY2022
FY2023Six months Six months

Operating profit
ChangeFY2022
FY2023Six months Six months

ChangeCementDomestic

114,368

123,8399,470

1,582(17,559)(19,142)

Business

Overseas Subsidiaries, etc.

110,982

129,006

18,024

14,826

10,149(4,677)

Total

225,351

252,846

27,494

16,409(7,410)(23,820)

Mineral Resources Business

37,21439,763

2,548

2,633

2,710

77

Environmental Business

33,83739,504

5,667

3,066

2,848

(218)

Construction Materials Business

29,26130,723

1,462

1,14660(1,086)

Other42,001

41,699

(301)

2,462

1,199

(1,262)

Total

367,665

404,537

36,872

25,718(591)(26,309)

Elimination(27,866)(28,554)

(688)

94

278

183

Consolidated Total

339,798

375,982

36,18425,812(313)(26,126)

Page 3

2. Financial Results for the Six Months
Ended September 30, 2022
(1) Consolidated Segment Information
Sales Volume of Cement
FY2022Six months(Thousand tons)
FY2023Six months

ChangeDomestic

6,605

6,566

(40)

Export

1,937

1,419

(518)

Average exchange rate appliedby overseas subsidiaries
FY2023Six months

Change

107.8

123.1

15.3

Cement Business(Million yen)

FY2022
FY2023Six months Six months

Net SalesDomestic(Yen/US$)FY2022Six months

114,368

123,839

ChangeMain Factors of Changes in Net Sales and Operating Profit

9,470 Decrease in sales volume of domestic cement and soil stabilizers -0.5 billion yen
Decrease in export cement volume -2.4 billion yen
Price difference in domestic cement and soil stabilizers +6.5 billion yen
Price difference in export cement +4.4 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc. +1.5 billion yen

Overseas
Subsidiaries, etc.

110,982

129,006

18,024 U.S.A. +US$37 million, China -US$19 million, Asia and other +US$7 million

Total

225,351

252,846

27,494

1,582(17,559)(19,142) Decrease in sales volume of domestic cement and soil stabilizers -0.1 billion yen

Operating Profit Domestic

Effect of foreign exchange, etc. +15.4 billion yen

Decrease in export cement volume -0.9 billion yen
Price difference in domestic cement and soil stabilizers +5.9 billion yen
Increase in net export cement revenue +2.6 billion yen
Increase in variable cost -23.3 billion yen
Increase in fixed cost -2.2 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed concrete, etc. -1.1 billion yen

Overseas
Subsidiaries, etc.

14,826

Total

16,40910,149(4,677) U.S.A. -US$34 million, China -US$10 million, Asia and other -US$13 million
Effect of foreign exchange, etc. +1.4 billion yen(7,410)(23,820)

Page 4

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

FY2022
FY2023Six months Six months

MineralResourcesBusiness

Main Factors of Changes in Net Sales and Operating Profit

2,548 Aggregate business remained strong mainly in the Kanto and Chubu region

Net Sales

37,21439,763Operating Profit

2,633

2,710

33,83739,504

5,667 Sales of calcium carbonate used for flue gas desulfurization and sales of fuel remained strong

Operating Profit

3,066

2,848(218) Processing operations in coal ash remained sluggish

Net Sales

29,26130,723

1,462 Sales of ALC (Autoclaved Lightweight Concrete) and contruction materials remained strong despite sales ofEnvironmental Net Sales
BusinessConstruction
Materials
BusinessChange

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

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

ground improvement projects remained sluggish

Operating Profit

1,14660(1,086) Rapid rise in raw material prices
Decrease in sales of ground improvement projects

OtherNet Sales

42,001

41,699(301)

Operating Profit

2,462

1,199(1,262)

Page 5

2. Financial Results for the Six Months
Ended September 30, 2022
(2) Consolidated Statements of Income (Items below Operating Profit)(Million yen)

FY2022Six months
Operating profit

FY2023Six months

Change25,812(313)(26,126)

766

229

(536)

Ordinary profit

26,578(84)(26,663)

Extraordinary income and losses

2,600(1,298)(3,898)

Profit before income taxes

29,179(1,382)(30,562)

Income taxes

8,469

14,505

6,035

Profit attributable to non-controlling interest

1,224567(657)

Profit attributable to owners of parent

19,485(16,455)(35,940)

Non-operating income and expenses

Page 62. Financial Results for the Six Months
Ended September 30, 2022
(3) Consolidated Balance Sheets(Million yen)

Change143,178

158,336

15,15894,189132,713

38,523

Other

42,91053,224

10,313

Total current assets

340,550

425,125

84,574

Total property, plant andequipment
Total intangible assets

557,829

627,059

69,23027,56640,45912,892

Total investments and other assets

177,061

179,832

2,771

Total non-current assets
Total assets

762,457

847,351

1,103,007

1,272,477

As of Dec. As of Jun.
31, 2021
30, 2022
Exchange rate at end of period (Yen/US$)

115.02136.6884,894

Change82,348248,440

317,083

68,642

Total liabilities

558,208709,200

150,991

Share capital

86,174

86,174-

Capital surplus

49,72949,724(4)Retained earnings

384,154363,601(20,552)

Treasury shares(13,766)(13,731)34

Total shareholders' equity

506,291

485,769(20,522)

Accumulated other comprehensive
incomeNon-controlling interests

4,325

40,09035,76434,181

37,416

3,235

Total net assets

544,799563,277

18,4781,103,007

1,272,477

169,469

169,469 Total liabilities and net assets

As of Mar. As of Sep.
31, 2022
30, 2022

Change21.66

As of Mar. As of Sep.
31, 2022
30, 2022
309,768
392,116

Non-current liabilities

Shareholders' equity

Notes and accounts receivable trade, and contract assets
Inventories

Current liabilities
Liabilities

20,578

Net assets

Non-current assets

Current assets

Cash and deposits

As of Mar. As of Sep.
31, 2022
30, 2022
60,27180,850Interest-bearing debt (Million yen)

270,587

373,656

Change103,069

Page 7

2. Financial Results for the Six Months
Ended September 30, 2022
(4) Consolidated Statements of Cash Flows(Million yen)

FY2022Six months

FY2023Six months

ChangeCash flows from operating activities

43,093(15,013)(58,106)

Cash flows from investing activities(53,144)(57,583)(4,439)Cash flows from financing activities

6,590

91,62885,038

Effect of exchange rate change on cash and cash equivalents

1,876

1,558

(317)

Net increase (decrease) in cash and cash equivalents(1,584)

20,59022,175024

24

Cash and cash equivalents at beginning of period

63,81950,213(13,606)

Cash and cash equivalents at end of period

62,23570,828

8,593

Other

＜ Indexes ＞

As of Mar. 31, As of Sep. 30,2022
2022

ChangeCurrent ratio (%)

109.9

108.4

(1.5)

Net debt/equity ratio (Times)

0.41

0.56

0.14

Page 8

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

Net sales
Operating profit
Ordinary profit
Extraordinary income and losses
Profit before income taxes
Profit attributable to owners of parent

FY2022
FY2023(Actual) (Forecast)
7,082
8,440
467
130
501
130(73)
(60)
428
70289
(160)

Change1,358(337)(371)
13(358)(449)＜Preconditions＞
Domestic demand of cement (Ten thousand tons)

3,788

3,800

12Page 93. Forecast for the Fiscal 2023
(2) Consolidated Segment Information
Net Sales and Operating Profit by Reportable Segments
Net sales
FY2022(Actual)FY2023(Forecast)(Hundred million yen)

Operating profit
ChangeFY2022(Actual)FY2023(Forecast)

ChangeCement

Domestic

2,374

2,720

346

(18)

(327)

(309)

Business

Overseas Subsidiaries, etc.

2,257

3,120863

260

270

10Total

4,632

5,840

1,208

241(57)(298)

Mineral Resources Business

771

850

7960600

Environmental Business

723

830

1076656(10)Construction Materials Business

65071060

3418(16)

Other890

880(10)6953(16)

Total

7,668

9,110

1,442

472

130(342)

Elimination

(586)

(670)

(84)

(5)

05

Consolidated Total

7,082

8,440

1,358

467

130(337)

Page 10

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

FY2023(Forecast)

ChangeDomestic

13,363

13,300(63)Export4,147

2,800(1,347)

Average exchange rate appliedby overseas subsidiaries

FY2022(Actual)FY2023(Forecast)

Change

109.9

133.0

23.1

Cement BusinessNet SalesDomestic

Overseas
Subsidiaries, etc.
Total
Operating Profit Domestic

Overseas
Subsidiaries, etc.
Total

(Yen/US$)(Hundred million yen)

FY2022
FY2023(Actual) (Forecast)
2,374
2,720

ChangeMain Factors of Changes in Net Sales and Operating Profit

346 Decrease in sales volume of domestic cement and soil stabilizers -1.0 billion yen
Decrease in export cement volume -7.2 billion yen
Price difference in domestic cement and soil stabilizers +29.0 billion yen
Price difference in export cement +8.9 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc. +4.9 billion yen
863 U.S.A. +US$246 million, China -US$19 million, Asia and other +US$75 million
Effect of foreign exchange, etc. +53.1 billion yen

2,257

3,120

4,632

5,840

1,208(18)(327)(309) Decrease in sales volume of domestic cement and soil stabilizers -0.5 billion yen

260270241(57)Decrease in export cement volume -2.4 billion yen
Price difference in domestic cement and soil stabilizers +26.8 billion yen
Increase in net export cement revenue +6.1 billion yen
Increase in variable cost -54.3 billion yen
Increase in fixed cost -3.1 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed concrete, etc. -3.5 billion yen
10 U.S.A -US$11 million, China -US$9 million, Asia and other -US$16 million
Effect of foreign exchange, etc. +5.0 billion yen(298)Page 11

4. Reference Information

Page 12

4. Reference Information

Page 13

4. Reference Information

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