Reference Materials of Financial Results
for the Fiscal Year Ended March 31, 2023

May 11, 2023

Page 0Contents
1. Highlights of Consolidated Financial Results

Page 2

Page 93. Forecast for the Fiscal 2024
(1) Consolidated Statements of Income(2) Consolidated Segment Information
2. Financial Results for the Fiscal 2023

Page 3

Page 12

4. Reference Information(1) Consolidated Segment Information(1) Change in Interest-bearing Debt

(2) Consolidated Statements of Income(2) Change in Capital Investment(3) Consolidated Balance Sheets(3) Change in Depreciation Expenses(4) Consolidated Statements of Cash Flows(4) Change in Research and Development Expenses(5) Sales Volume of Cement in Overseas Subsidiaries(6) Overview of Businesses in the U.S.A.
(7) Forecast for the First Half of Fiscal 2024

Page 1

1. Highlights of Consolidated Financial Results(Million yen)
FY2022

FY2023

ChangeNet sales

708,201

809,542

101,340

Operating profit

46,701

4,456(42,245)

Ordinary profit

50,193

1,015(49,177)

Profit attributable to owners of parent

28,971(33,206)(62,178)＜ Indexes＞

FY2022

FY2023

ChangeCapital adequacy ratio (%)

46.3

39.0

(7.3)

Capital adequacy ratio based on market value (%)

21.4

22.9

1.5

Net assets per share (Yen)

4,362.2

4,228.5(133.8)

Basic earnings per share (Yen)

245.8(283.7)(529.5)

Ordinary profit to total assets ratio (%)

4.7

0.1

(4.6)

Rate of return on equity (%)

5.9

(6.6)

(12.5)

Operating profit to net sales ratio (%)

6.6

0.6

(6.0)
Page 2

2. Financial Results for the Fiscal 2023
(1) Consolidated Segment Information
Net Sales and Operating Profit by Reportable Segments(Million yen)

Net Sales
FY2022Cement

Domestic

FY2023Operating Profit
ChangeFY2022

FY2023

Change237,490

255,740

18,249(1,851)(36,918)(35,066)

225,723

297,301

71,57726,04022,019(4,020)

Total

463,214553,041

89,82724,188(14,898)(39,087)

Mineral Resources Business

77,18282,706

5,523

6,034

5,556

(478)

Environmental Business

72,315

77,911

5,595

6,647

5,871

(776)

Construction Materials Business

65,096

68,270

3,173

3,493

2,351

(1,141)

Other

89,02586,926(2,099)

6,920

5,108

(1,811)

Total

766,835

868,855

102,020

47,2853,989(43,295)

Elimination(58,633)(59,313)

(679)

(583)

466

1,050

Consolidated Total

708,201

809,542

101,340

46,701

4,456(42,245)

Business Overseas Subsidiaries, etc.

Page 32. Financial Results for the Fiscal 2023
(1) Consolidated Segment Information

Average exchange rate applied(Thousand tons) by overseas subsidiaries

Sales Volume of Cement

Cement Business

FY2022

FY2022Net Sales

Domestic

237,490

FY2023
255,740

FY2023

ChangeDomestic

13,363

13,129(233)

Export

4,147

2,438

(1,709)Change(Yen/US$)FY2022

FY2023

Change109.9

131.6

21.7

(Million yen)

Main Factors of Changes in Net Sales and Operating Profit

18,249 Decrease in sales volume of domestic cement and soil stabilizers -3.3 billion yen
Decrease in export cement volume -9.1 billion yen

OperatingProfit

Price difference in domestic cement and soil stabilizers +21.0 billion yen
Price difference in export cement +5.7 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc.
+4.0 billion yen
71,577 U.S.A +US$264 million
China -US$68 million, Asia and other +US$28 million
Effect of foreign exchange, etc. +47.0 billion yen

Overseas
Subsidiaries,etc.
Total

225,723

297,301

463,214553,041

89,827

Domestic(1,851)(36,918)(35,066) Decrease in sales volume of domestic cement and soil stabilizers -1.2 billion yen
Decrease in export cement volume -3.1 billion yen

Overseas
Subsidiaries,etc.
Total

26,04022,019Price difference in domestic cement and soil stabilizers +19.9 billion yen
Increase in net export cement revenue +4.5 billion yen
Increase in variable cost -52.5 billion yenIncrease in fixed cost -1.2 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed concrete, etc.
-1.5 billion yen(4,020) U.S.A -US$14 million
China -US$32 million, Asia and other -US$27 million
Effect of foreign exchange, etc. +4.0 billion yen

24,188(14,898)(39,087)

Page 42. Financial Results for the Fiscal 2023
(1) Consolidated Segment Information
Reportable Segments (Excluding Cement Business) and Other(Million yen)

FY2022MineralResourcesBusinessNet Sales

77,182

FY202382,706

ChangeMain Factors of Changes in Net Sales and Operating Profit

5,523 Aggregates business remained strong mainly in Kanto region and Chubu region
Some of the various cost increases passed on to selling prices

Operating
Profit6,034

5,556(478) Decreased due to various cost increases

Environmental Net Sales
Business

72,315

77,911

5,595 Sales of calcium carbonate used for flue gas desulfurization, gypsum, and fuel remained strong

Operating
Profit6,647

5,871(776) Foreign exchange impact deteriorated profitability in biomass fuel business

Net Sales

65,096

68,2703,173 Sales of ALC (Autoclaved Lightweight Concrete) and contruction materials remained strong

Construction
Materials
BusinessOther

despite sales of ground improvement projects remained sluggish

2,351(1,141) Rapid rise in raw material prices

OperatingProfit

3,493

Net Sales

89,02586,926(2,099)OperatingProfit

6,920

5,108(1,811)

Decrease in sales of ground improvement projects

Page 52. Financial Results for the Fiscal 2023
(2) Consolidated Statements of Income (Items below Operating Profit)(Million yen)
FY2022

FY2023

ChangeOperating profit

46,701

4,456(42,245)

Non-operating income and expenses

3,491(3,440)(6,932)

Ordinary profit

50,193

1,015(49,177)

Extraordinary income and losses(7,372)(17,382)(10,009)

Profit before income taxes

42,820(16,366)(59,187)

Income taxes

11,76917,872

6,102

Profit attributable to non-controlling interests

2,079(1,032)(3,111)

Profit attributable to owners of parent

28,971(33,206)(62,178)

Page 6

2. Financial Results for the Fiscal 2023
(3) Consolidated Balance Sheets
Change166,533

182,963

16,429Inventories

94,189138,373

44,183

Other

19,55529,228

9,673

Total current assets

340,550

430,408

89,857

Total property, plant andequipment
Total intangible assets

557,829620,083

62,25427,566

39,766

12,200Total investments and otherassets

177,061

178,604

1,543

Total non-current assets
Total assets

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

762,457

838,454

1,103,007

1,268,862

As of Dec.
31, 2021

As of Dec.
31, 2022

115.02132.7075,997

As of Mar. As of Mar.
31, 2022
31, 2023
309,768
385,784

Change76,016

Non-current liabilities

248,440

354,221

105,780

Total liabilities

558,208

740,005

181,796

Share capital

86,174

86,174-

Capital surplus

49,72949,7290Retained earnings

384,154342,880(41,273)

Treasury shares(13,766)(13,738)

27

Total shareholders' equity

506,291

465,045(41,245)

Accumulated other comprehensive
incomeNon-controlling interests

4,325

29,911

25,58534,18133,899(281)

Total net assets

544,799

528,857(15,941)

1,103,007

1,268,862

165,854

As of Mar.
31, 2022

As of Mar.
31, 2023

270,587

403,485

Shareholders' equity

Trade receivables

Current liabilitiesLiabilities

19,570Net assets

Non-current assets

Current assets

Cash and deposits

As of Mar. As of Mar.
31, 2022
31, 2023
60,271
79,842(Million yen)

165,854 Total liabilities and net assets

Change17.68 Interest-bearing debt (Million yen)

Change132,898

Page 7

2. Financial Results for the Fiscal 2023
(4) Consolidated Statements of Cash Flows(Million yen)
FY2022

FY2023

ChangeCash flows from operating activities

71,191(268)(71,460)

Cash flows from investing activities(83,919)(93,344)(9,424)

Cash flows from financing activities(3,742)

112,080

115,822

Effect of exchange rate change on cash and cash equivalents

2,864

2,048(816)

Net increase (decrease) in cash and cash equivalents(13,606)

20,51534,121－99

99

Cash and cash equivalents at beginning of period

63,81950,213(13,606)

Cash and cash equivalents at end of period

50,21370,82820,614Other＜ Indexes＞
Current ratio (%)

FY2022

FY2023

Change

109.9

111.6

1.6

Cash flow to interest-bearing debt ratio (Year)

3.8－－

Interest coverage ratio (Times)

32.4

－－

Net debt/equity ratio (Times)

0.410.65

0.24* In FY2023, "Cash flow to interest-bearing debt ratio" and "Interest coverage ratio" are not shown because "Cash flows from operatingactivities" is negative.

Page 8

3. Forecast for the Fiscal 2024
(1) Consolidated Statements of Income(Hundred million yen)
FY2023(Actual)
Net sales

FY2024(Forecast)

Change

8,095

9,200

1,105

Operating profit

44580

536

Ordinary profit

10560

550(332)

400732

3,728

3,800

72

Profit attributable to owners of parent＜Preconditions＞
Domestic demand of cement (Ten thousand tons)

Page 9

3. Forecast for the Fiscal 2024
(2) Consolidated Segment Information
Net Sales and Operating Profit by Reportable Segments(Hundred million yen)

Net Sales
FY2023(Actual)CementDomestic

FY2024(Forecast)

Operating Profit
FY2023(Actual)ChangeFY2024(Forecast)

Change

2,557

3,220

663

(369)

73

442

2,973

3,220

247

220287

67

Total

5,530

6,440910(148)

360508Mineral Resources Business

827

920

935576

21

Environmental Business

779

810

31586911

Construction Materials Business

682

770

882332

9

Other869

950

815150

(1)

Total

8,688

9,890

1,20239587548Elimination

(593)

(690)

(97)

4(7)

(11)

Consolidated Total

8,095

9,200

1,105

44580

536

Business Overseas Subsidiaries, etc.

Page 103. Forecast for the Fiscal 2024
(2) Consolidated Segment Information
Cement Business

Sales Volume of Cement
FY2023(Actual)Average exchange rate applied(Thousand tons) by overseas subsidiaries
FY2023
FY2024FY2024
Change(Actual)(Forecast)(Forecast)

Domestic

13,12914,3001,171

Export

2,438

2,450

12131.6(Yen/US$)
Change134.0

2.4(Million yen)

Net Sales

Domestic

FY2023
FY2024(Actual) (Forecast)
2,557
3,220

ChangeMain Factors of Changes in Net Sales and Operating Profit

663 Increase in sales volume of domestic cement and soil stabilizers +17.5 billion yen
Increase in export cement volume +0.1 billion yen
Price difference in domestic cement and soil stabilizers +45.2 billion yen

OperatingProfit

Overseas
Subsidiaries,etc.
Total
Domestic

2,973

3,220

Price difference in export cement -1.1 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc.
+4.5 billion yen
247 U.S.A +US$194 million
China -US$122 million, Asia and other +US$89 million
Effect of foreign exchange, etc. +3.5 billion yen

5,530(369)

6,440
73910
442 Increase in sales volume of domestic cement and soil stabilizers +1.3 billion yen
Increase in export cement volume +0.0 billion yen
Price difference in domestic cement and soil stabilizers +42.3 billion yen
Increase in net export cement revenue +0.5 billion yen
Decrease in variable cost +3.9 billion yen
Increase in fixed cost -2.6 billion yen
Decrease in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc.
-1.2 billion yen

Overseas
Subsidiaries,etc.
Total220287

67 U.S.A +US$34 million
China +US$10 million, Asia and other +US$1 million
Effect of foreign exchange, etc. +0.6 billion yen(148)360508Page 11

4. Reference Information

Page 12

4. Reference Information

Page 13

4. Reference Information

Page 14

4. Reference Information(7) Forecast for the First Half of Fiscal 2024
① Consolidated Statements of Income(Hundred million yen)First Half ofFY2023(Actual)
Net salesFirst Half ofFY2024(Forecast)

Change3,759

4,440681

Operating profit

(3)

190

193

Ordinary profit(0)170170(164)110274

Profit attributable to owners of parent

Page 15

4. Reference Information(7) Forecast for the First Half of Fiscal 2024
② Net Sales and Operating Profit by Reportable Segments(Hundred million yen)

Net SalesFirst Half of
FY2023(Actual)First Half of
FY2024(Forecast)

1,238

1,580

1,290

Total

Operating Profit
First Half of
FY2023(Actual)First Half of
FY2024(Forecast)342(175)

(19)

156

1,550

260

101

135

342,528

3,130602(74)

116

190

Mineral Resources Business397

460

63

27369

Environmental Business395410

1528346

Construction Materials Business307355

48077

Other416425

9114(7)

Total

4,045

4,780

735

(5)

197

202

Elimination

(285)

(340)

(55)

2(7)

(9)

Consolidated Total

3,759

4,440

681

(3)

190

193

CementDomestic

Business Overseas Subsidiaries, etc.

ChangeChangePage 16

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 17