Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]May 11, 2023
Company name: TAIHEIYO CEMENT CORPORATION
Stock exchange listing: Tokyo, Fukuoka
Code number: 5233
URL: https://www.taiheiyo-cement.co.jp/english/index.html
Representative: Masafumi Fushihara
President and Representative Director
Contact: Kenichi Takano
General Manager of General Affairs Department
Phone: +81-3‐5801‐0334
Scheduled date of Annual General Meeting of Shareholders: June 29, 2023
Scheduled date of commencing dividend payments: June 30, 2023
Scheduled date of filing annual securities report: June 30, 2023
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes (For Analysts and Institutional Investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year ended
March 31, 2023
809,54214.3
4,456(90.5)
1,015(98.0)(33,206)
March 31, 2022
708,201(18.0)
46,701(26.6)
50,193(23.7)
28,971(38.1)(Note) Comprehensive income:Fiscal year ended March 31, 2023:(5,248) million yen [-%]Fiscal year ended March 31, 2022:
53,115 million yen [(0.7) %]
Basic earnings per Diluted earnings per Rate of return on
share
share
equityYen
Fiscal year ended
March 31, 2023
(283.68)
March 31, 2022
245.80(Reference) Equity in earnings (losses) of affiliated companies:

Yen

Ordinary profit tototal assets ratio%

Operating profit to
net sales ratio

%

(6.6)
5.9
Fiscal year ended March 31, 2023:
Fiscal year ended March 31, 2022:

0.1
4.7

%

0.6
6.6
(2,771) million yen
1,913 million yen(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Million yen

1,268,862
1,103,007
As of March 31, 2023:
As of March 31, 2022:

Capital adequacy ratio

Million yen

528,857
544,799494,957 million yen
510,617 million yen

Net assets per share

%

Yen

39.0
46.3

4,228.48
4,362.23(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at endof period

Million yen

Million yen

Million yen

Million yen(268)
71,191(93,344)(83,919)

112,080(3,742)70,82850,213-1-

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

March 31, 2022

-

35.00

-

35.00

70.00

8,200

28.5

1.7

March 31, 2023

-

35.00

-

35.00

70.00

8,217

-

1.6

-

35.00

-

35.00

70.00

Fiscal year ending
March 31, 2024

20.5

(Forecast)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable
Basic earnings per
Net sales
Operating profit
Ordinary profit
to owners of
shareparentMillion yen%

Million yen%

Million yen%

Million yen%

Yen

Six months ending
September 30, 2023

444,000

18.1

19,000-17,000-11,000-93.97

Full year

920,000

13.6

58,000 1,201.5

56,0005,412.6

40,000-341.72* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
March 31, 2023:
121,985,078 shares
March 31, 2022:
121,985,078 shares2) Total number of treasury shares at the end of the period:
March 31, 2023:
4,931,863 shares
March 31, 2022:
4,930,945 shares
3) Average number of shares outstanding during the period:
Fiscal Year ended March 31, 2023:
Fiscal Year ended March 31, 2022:

117,055,316 shares
117,866,969 shares-2-

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Ordinary profit

Net income

Million yen%

Million yen%

Million yen%

Million yen%

309,486
287,525

7.6(2.6)(33,643)1,584(90.7)(16,733)
30,551

31.7(32,882)
22,524

21.5

Basic earnings per share Diluted earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

Yen

Yen

(280.12)190.59-(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Net assets

Capital adequacy ratio

Million yen

Million yen

718,159
625,047

256,871296,616
256,871 million yen
296,616 million yen

As of March 31, 2023:
As of March 31, 2022:

Net assets per share

%

Yen

35.8
47.5

2,188.12
2,527.28

2. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Net sales
Full year

Ordinary profit

Net income

Basic earnings per share

Million yen%

Million yen%

Million yen%

Yen383,000

23.8

33,500-31,000-264.07* The forecasts herein are 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 thisforecast due to various factors.

-3-

Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of March 31, 2022

As of March 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsElectronically recorded monetary claims operating
Merchandise and finished goods

60,271

79,842

143,178

158,136

23,354

24,826

34,40947,460Work in process
Raw materials and supplies

1,277
58,502

1,529
89,383

Short-term loans receivable
Other

1,921
17,942

1,459
27,920Allowance for doubtful accounts

(307)

(150)

340,550

430,408

515,145531,889

Accumulated depreciation
Buildings and structures, net(361,439)
153,705(374,577)
157,312

Machinery, equipment and vehicles
Accumulated depreciation

968,234(797,800)

1,038,534(847,452)

Machinery, equipment and vehicles, net
Land

170,433
156,031

191,081
165,027

Leased assets
Accumulated depreciation

39,955(20,891)

26,217(12,819)

Leased assets, net
Construction in progress

19,06432,676

13,39834,286Other
Accumulated depreciation

65,708(39,790)

101,217(42,240)

25,91758,977557,829620,083

Goodwill
Other

80
27,485

101
39,665

Total intangible assets

27,566

39,766

Investment securities
Long-term loans receivable

118,359
1,391

117,8392,376

Retirement benefit asset
Deferred tax assets

22,68011,081

23,697
8,167

Other
Allowance for doubtful accounts

25,431(1,883)

27,832(1,309)Total investments and other assets

177,061

178,604

762,457

838,454

1,103,007

1,268,862

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets
Total assets-4-

(Million yen)
As of March 31, 2022

As of March 31, 2023

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

79,685
8,751

84,162
11,613

Short-term borrowings
Commercial papers

102,986
21,000149,573
27,000Current portion of bonds payable
Income taxes payable

4,198

10,0003,687

Provision for bonuses
Provision for loss on business withdrawal

6,246
-

5,677
2,564

Other provisions
Other

213
86,685

108
91,395

Total current liabilities

309,768

385,784

Bonds payable
Long-term borrowings

60,00086,60050,000166,911

Deferred tax liabilities
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Provision for special repairs
Provision for product compensation

10,02022,701

18,32921,380

512

536

258
3,330

227
4,498

478

1,924
472

13,481
8,703

26,514
9,379

Non-current liabilities

Provision for loss on business withdrawal
Other provisions
Lease liabilities
Asset retirement obligations
Other

42,35254,045

Total non-current liabilities

248,440

354,221558,208

740,005

Share capital
Capital surplus

86,17449,72986,17449,729Retained earnings
Treasury shares

384,154(13,766)

342,880(13,738)

Total shareholders' equity

506,291

465,045

11,737

12,038

6
4,897

0
3,610

(11,322)(992)

13,730530

4,325

29,911

Total liabilities
Net assets
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests

34,18133,899Total net assets

544,799

528,857

1,103,007

1,268,862

Total liabilities and net assets-5-Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended March 31, 2022

For the fiscal year
ended March 31, 2023

Net sales
Cost of sales

708,201
532,818

809,542
668,324

Gross profit

175,382

141,218

Amortization of goodwill
Other

54
128,626

46
136,715

Total selling, general and administrative expenses

128,681

136,761

46,701

4,456

551
1,641

738
1,653

Selling, general and administrative expenses

Operating profit
Non-operating income
Interest income
Dividend income
Rental income from real estate
Share of profit of entities accounted for using equity
method
Other

90

91

1,913

-

4,113

2,427

Total non-operating income

8,311

4,911

Interest expenses
Share of loss of entities accounted for using equity
method
Other

2,195

2,746

-

2,771

2,623

2,834

Total non-operating expenses

4,819

8,352

50,193

1,015

Gain on disposal of non-current assets
Gain on sale of investment securities

6,386
615

1,053
1,307

Compensation income
Other

1,051

1,766
221

Total extraordinary income

8,054

4,348

Loss on disposal of non-current assets
Loss on sale of investment securities

7,301
428

5,255
442

Loss on valuation of investment securities
Impairment losses

20
2,407

6
6,061

Business withdrawal loss
Product compensation expenses

3,506

7,984
1,277

Other

1,762

702

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary losses

Total extraordinary losses

15,426

21,730

Profit (loss) before income taxes

42,820(16,366)

Income taxes – current
Income taxes – deferred

11,542
227

7,671
10,200Total income taxes

11,76917,872

Profit (loss)
Profit (loss) attributable to non-controlling interests

31,051
2,079(34,239)(1,032)

Profit (loss) attributable to owners of parent

28,971(33,206)-6-

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended March 31, 2022
Profit (loss)
Other comprehensive income

For the fiscal year
ended March 31, 2023

31,051(34,239)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

(544)
5

369
(5)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

18,596
1,447

25,042
1,389

2,559

2,196

22,06328,990Comprehensive income

53,115(5,248)Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

48,324(6,334)

4,790

1,086

-7-

Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022
(Million yen)
Shareholders' equity
Share capital
Balance at beginning of period

86,174

Capital surplus

Retained earnings

60,292

365,593

Cumulative effects of changes in accounting
policies
Restated balance

Treasury shares(26,113)(493)
86,17460,292365,100

Total shareholders'equity485,946(493)(26,113)

485,453

Changes during period
Change in ownership interest of parent due totransactions with non-controlling interests

350

350

Dividends of surplus(7,648)(7,648)

Profit (loss) attributable to owners of parent

28,971

28,971(5,016)(5,016)

(12)

87

75

(16,030)

16,030-

Increase (decrease) by share exchanges

2,859

1,246

4,105

Transfer from retained earnings to capitalsurplus

2,269(2,269)-(10,563)

19,053

12,347

20,837

86,17449,729384,154(13,766)

506,291

Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Change in scope of consolidation
Increasing and decreasing by consolidated
subsidiaries merging with unconsolidated
subsidiaries
Increasing and decreasing by absorption split-

Net changes in items other than shareholders'equityTotal changes during period
Balance at end of period-8-

Accumulated other comprehensive income
Valuation
Deferred gains
difference on
Revaluation
or losses onavailable-forreserve for land
hedgessale securities
Balance at beginning of period

12,4291

4,898

Foreigncurrencytranslation
adjustment(29,917)

Total
Remeasurements accumulatedof defined benefit
other
plans
comprehensive
income(2,438)(15,025)

Cumulative effects of changes inaccounting policies
Restated balance

12,4291

4,898(29,917)(2,438)(15,025)

Noncontrollinginterests

Total net
assets35,899506,8217(485)

35,907506,335

Changes during period
Change in ownership interest ofparent due to transactions with
non-controlling interests

350

Dividends of surplus(7,648)

Profit (loss) attributable to ownersof parent

28,971

Purchase of treasury shares(5,016)

Disposal of treasury shares

75

Cancellation of treasury shares-

Change in scope of consolidation-

Increasing and decreasing byconsolidated subsidiaries merging
with unconsolidated subsidiaries-

Increasing and decreasing byabsorption split-

Increase (decrease) by shareexchanges

4,105Transfer from retained earnings tocapital surplus-

Net changes in items other thanshareholders' equity

(692)

4

(1)

18,595

1,445

19,351(1,726)

17,625

Total changes during period

(692)

4

(1)

18,595

1,445

19,351(1,726)

38,463

11,737

6

4,897(11,322)

(992)

4,325

34,181

544,799

Balance at end of period-9-For the fiscal year ended March 31, 2023
(Million yen)
Shareholders' equity
Share capital
Balance at beginning of period

Treasury shares

Total shareholders'equityCapital surplus

Retained earnings

86,17449,729384,154(13,766)

506,291

86,17449,729384,154(13,766)

506,291

Cumulative effects of changes in accounting
policies
Restated balance
Changes during period
Change in ownership interest of parent due totransactions with non-controlling interests

00

Dividends of surplus(8,204)(8,204)

Profit (loss) attributable to owners of parent(33,206)(33,206)

Purchase of treasury shares(28)

Disposal of treasury shares

(69)

(69)

97

69

Cancellation of treasury shares

135

135

Increasing and decreasing by consolidated
subsidiaries merging with unconsolidated
subsidiaries

55

Increasing and decreasing by absorption split

24

24

28

(28)

-

-

0

(41,273)27(41,245)

86,17449,729342,880(13,738)

465,045

Change in scope of consolidation

Increase (decrease) by share exchanges
Transfer from retained earnings to capitalsurplus
Net changes in items other than shareholders'equityTotal changes during period
Balance at end of period- 10 -

Accumulated other comprehensive income
Valuation
Deferred gains Revaluationdifference onor losses onreserve foravailable-forhedges
landsale securities
Balance at beginning of period

Foreigncurrencytranslation
adjustment

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
incomeNoncontrollinginterests

Total net
assets

11,737

6

4,897(11,322)

(992)

4,325

34,181 544,799

11,737

6

4,897(11,322)

(992)

4,325

34,181 544,799

Cumulative effects of changes
in accounting policies
Restated balance
Changes during period
Change in ownership interestof parent due to transactions
with non-controlling interests

0

Dividends of surplus(8,204)

Profit (loss) attributable toowners of parent(33,206)

Purchase of treasury shares(69)

Disposal of treasury shares

69-

Cancellation of treasury shares
Change in scope of
consolidation

135

Increasing and decreasing byconsolidated subsidiaries
merging with unconsolidated
subsidiaries

5

Increasing and decreasing byabsorption split
Increase (decrease) by shareexchanges

24-

Transfer from retained earnings
to capital surplus-

Net changes in items other thanshareholders' equity

301

(5)

(1,286)25,053

1,523

25,585(281)

Total changes during period

301

(5)

(1,286)25,053

1,523

25,585(281) (15,941)

12,03803,610

13,730530

29,91133,899 528,857

Balance at end of period- 11 -

25,303

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended March 31, 2022
Cash flows from operating activities
Profit (loss) before income taxes

For the fiscal year
ended March 31, 2023

42,820(16,366)

Depreciation
Amortization of goodwill
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on valuation of investment securities
Increase (decrease) in net retirement benefit liability
and net retirement benefit asset
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in provision for bonuses

56,01054

64,41946(1,913)

2,771

20

6

(302)

(1,461)

8

23

(19)

(574)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on businesswithdrawal
Increase (decrease) in other provisions
Interest and dividend income(4,129)

(532)

-

4,452

3,185
(2,193)997(2,392)

Interest expenses
Loss (gain) on sale of investment securities

2,195
(187)

2,746
(865)

Loss (gain) on disposal of non-current assets
Impairment losses

914
2,407

4,202
6,061

Decrease (increase) in trade receivables
Decrease (increase) in inventories(1,904)(15,714)(18,217)(37,165)

Increase (decrease) in trade payables
Other, net

5,679(4,162)

9,376(10,018)

Subtotal

82,7697,508Interest and dividends received
Interest paid

2,807
(2,199)3,211(2,740)

Income taxes paid

(12,186)(8,247)

Net cash provided by (used in) operating activities

71,191

(268)

182

1,937

(67,326)
6,458(63,401)
1,820

(440)

(595)

2

79

(24,123)(1,991)

1,010

2,048

10

355

(2,150)2,458(1,242)660(2)(30,930)(2,082)(83,919)(93,344)

Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of other depreciated assets
Proceeds from sale of depreciation and amortization
assetsPurchase of investment securities
Proceeds from sale and redemption of investment
securities
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Loan advances
Proceeds from collection of loans receivable
Payments for acquisition of businesses
Other, net
Net cash provided by (used in) investing activities- 12 -

(Million yen)
For the fiscal year
ended March 31, 2022
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

For the fiscal year
ended March 31, 2023

(5,936)23,237

Increase (decrease) in commercial papers
Proceeds from long-term borrowings

21,00040,7436,000
144,264

Repayments of long-term borrowings
Proceeds from issuance of bonds(34,035)
10,000(41,826)-

Redemption of bonds
Purchase of treasury shares(10,000)(5,036)(12)

Dividends paid
Dividends paid to non-controlling interests(7,648)(1,404)(8,204)(942)

Other, net(11,423)(10,435)(3,742)

112,080

2,864

2,048

(13,606)

20,51563,81950,213

-

50

-

48

50,21370,828Net cash provided by (used in) 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
Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
Increase in cash and cash equivalents resulting frommergerCash and cash equivalents at end of period- 13 -

Consolidated Segment Information
Reportable Segments
For the Fiscal Year Ended March 31, 2022
(Million yen)
Reportable Segments
CementBusiness

MineralResources
Business

Environmental
Business

Construction
Materials
Business

Other

Total

Consolidated
Total

Adjustment

Total

Net sales
Sales to outside
customers

455,975

58,64068,87563,570647,062

61,139708,201-

708,201

Inter-segment
sales
Total

7,238

18,542

3,440

1,526

30,74827,88558,633(58,633)-

463,214

77,182

72,31565,096

677,81089,025

766,835(58,633)

708,201

Segment income

24,188

6,034

6,647

3,493

40,3646,920

47,285(583)

46,701For the Fiscal Year Ended March 31, 2023
(Million yen)
Reportable Segments
CementBusiness

MineralResources
Business

Environmental
Business

Construction
Materials
Business

Other

Total

Consolidated
Total

Adjustment

Total

Net sales
Sales to outside
customers

545,742

61,92973,45667,081

748,210

61,331

809,542-809,542Inter-segment
sales
Total

7,299

20,776

4,454

1,188

33,71825,59459,313(59,313)-553,041

82,706

77,911

68,270781,929

86,926

868,855(59,313)809,542

Segment income(14,898)

5,556

5,871

2,351

(1,119)

5,108

3,989

466

4,456

Geographic Segments
For the Fiscal Year Ended March 31, 2022
(Million yen)Japan

U.S.A.

Other

Total

Net sales

459,104

161,527

87,569708,201

Non-current
assets407,911

107,686

42,231

557,829

For the Fiscal Year Ended March 31, 2023
(Million yen)Japan

U.S.A.

Other

Total

Net sales

491,170

227,801

90,570809,542

Non-current
assets405,405

169,73144,946620,083- 14 -