Summary of Consolidated Financial Results of Taiheiyo Cement Corporation
for the Fiscal 2008 Ended March 31, 2008
May 13, 2008
Company:
Stock code:
URL:

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

Fiscal 2007 : April 1, 2006-March 31,2007
Fiscal 2008 : April 1, 2007-March 31, 2008
Fiscal 2009 2Q: April 1, 2008-September 30, 2008
Fiscal 2009 : April 1, 2008-March 31, 2009

The accompanying consolidated financial results are not intended to present the financial results in accordancewith accounting principles and practices generally accepted in countries and jurisdictions other than Japan.

1. FY3/08 consolidated results (April 1, 2007 – March 31, 2008)
All yen figures are rounded down to the nearest one million yen.
(1) Consolidated results of operations
FY3/08
FY3/07

Net Sales
Millions of Yen
927,576
940,630

Income from operations
Millions of Yen%
51,551 –32.8
76,692
23.7

%
–1.4
3.7

EPS

Diluted EPS
Yen
21.84
26.08

FY3/08
FY3/07

ROE

Yen
20.23
25.20

%
3.4
5.4

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

Total assets
Millions of Yen
1,218,033
1,256,980Total net assets
Millions of Yen
327,589
329,637(3) Consolidated cash flows

Equity ratio

Equity per shareYen
308.82312.98%23.8
23.3

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

Cash flows fromoperating activities
Millions of Yen
71,35962,613

FY3/08
FY3/07

Operating income
to net sales
%
5.6
8.2

ROA%
7.0
8.7

(2) Consolidated financial position
FY3/08
FY3/07

Ordinary income
Net income
Millions of Yen% Millions of Yen%
41,645 –38.7
20,485 –16.1
67,90736.4
24,408 168.2

Cash flows frominvesting activities
Millions of Yen–56,674–37,702

2. Dividends

Cash flows fromfinancing activities
Millions of Yen–20,150–53,272

Cash and cash
equivalents at term-end
Millions of Yen
60,05165,657All yen figures are rounded down to the nearest one million yen.

Dividends per share
1H

FY3/07
FY3/08
FY3/09(forecast)Year-end

AnnualTotal amount ofcash dividends(annual)Dividends
payout ratio(consolidated)
%
15.3
22.9
37.6

Yen

Yen

Yen

Millions of Yen

2.00
2.00
2.00

2.00
3.00
2.00

4.00
5.00
4.00

3,791
4,736—

Ratio of total
amount of dividends
to shareholders’equity (consolidated)
%
1.3
1.6—

3. FY3/09 consolidated earnings forecast (April 1, 2008 – March 31, 2009)
Income fromoperations

Sales

Ordinary income

Net income

EPS

10,0003,500%–83.4

Millions of Yen

440,000%–61.2

Millions of Yen

2Q FY3/09%–4.2

Millions of Yen–2,500%––2.66

FY3/09935,000

0.8

40,000–22.4

30,000–28.0

10,000

–51.2

10.65

Millions of Yen

Yen

This forecast is 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 this forecast due to various factors.

Page 1 of 9

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

(Unit: Millions of Yen)
Item
AssetsCurrent assets
Cash and time deposits
Notes and accounts receivable
Inventories
Deferred income taxes
Short-term loans
Other current assets
Allowance for doubtful accounts
Current assets
Fixed assets
A. Tangible fixed assetsBuildings and structures
Machinery, equipment
Land
Construction in progress
Other
Tangible fixed assets
B. Intangible fixed assets
Goodwill
Other
Intangible fixed assets
C. Investments and other assets
Investments in securities
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Investments and other assets
Fixed assets
Total assets

FY3/07(As of 3/31/07)

FY3/08(As of 3/31/08)

70,142206,927
80,412
5,385
13,732
16,773–1,848391,526

64,465
189,559
86,02010,011
13,886
15,330–1,425
377,848–5,677–17,367
5,607
4,626
153
–1,442422–13,677

191,675
173,575
174,927
14,78325,324580,285

188,411
172,317
166,092
17,05027,178571,049–3,263–1,258–8,8352,266
1,853–9,236

19,72525,33945,064

22,67927,82050,499

2,954
2,480
5,435

183,365
4,931
16,94551,658–16,799
240,102865,453
1,256,980

152,647
3,398
21,28452,425–11,120
218,635
840,184
1,218,033–30,718–1,533
4,339
766
5,678
–21,467–25,268–38,946

ChangePage 2 of 9

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

(Unit: Millions of Yen)
ItemLiabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Commercial Paper
Bonds (due within one year)
Income taxes payable
Deferred income taxes
Bonus reserve
Bonus reserve for directors andcorporate auditors
Other reserves
Other
Current liabilities
Fixed liabilities
Bonds
Convertible bonds
Long-term borrowings
Deferred income taxes
Deferred income taxes from revaluation
excess
Accrued for retirement benefits
Accrued for retirement benefits todirectors and corporate auditors
Allowance for loss on investments in
subsidiaries and affiliates
Special repair reserve
OtherFixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Shareholders’ equity
Valuation and translation adjustment
Unrealized gain on other securities
Net unrealized gain(loss) on derivatives
Revaluation excess
Foreign currency translation adjustments
Accumulated other comprehensivelosses
Valuation and translation adjustment
Minority interests in consolidated
subsidiaries
Total net assets
Total liabilities and total net assetsFY3/07(As of 3/31/07)

FY3/08(As of 3/31/08)

116,751
282,058
11,000
1,574
4,654
106
6,825

109,114284,104
19,000
1,227
4,036
23
7,046

–7,636
2,046
8,000
–346
–617
–83
220

65

53

–11

719
74,867498,623

787
63,315
488,71067–11,552–9,91374,34934,196
206,973
23,84372,997
34,167
178,740
22,951–1,352–29–28,233
–892

6,061

6,095

34

34,91935,319

400

2,384

1,453

–931

–138

138

250
45,738428,718
927,342315
49,553401,733
890,443

65
3,814–26,985–36,898

69,49959,868126,127–1,669253,826

69,49960,756
142,923–1,689271,489–887
16,796–20
17,66325,48521
4,677
10,72010,352
–45
4,594
5,469

–15,133–67–83–5,251–1,740–1,971–230

39,165

18,399–20,766

36,64637,701

1,054

329,637
1,256,980

327,589
1,218,033–2,047–38,946

ChangePage 3 of 9

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

(Unit: Millions of Yen)
FY3/07
FY3/08(4/1/06–3/31/07) (4/1/07–3/31/08)
927,576
940,630

Item

728,386

6,845

Gross profit

192,344

212,244–19,900

Selling, general and administrative expenses

140,793

135,551

5,241

Income from operations

51,551

76,692–25,141

Interest and dividends received

3,201

2,835

366

Other non-operating income

4,838

6,240

–1,401

8,040

9,075

–1,034

10,84011,460

–619

3,830

3,339

491

Total
Interest expenses
Equity in losses of unconsolidated
subsidiaries and affiliates
Other non-operating expenses
Total

Gains

Ordinary income
Gain on disposal of fixed assets
Gain on sale of investments insecurities
Gain on return of retirement benefit
trust
Other extraordinary gains
Total
Loss on disposal of fixed assets
Provision for allowance for doubtful
accounts
Liquidation of unconsolidated
subsidiaries and affiliates
Loss on sale of investment securities

LossesExtraordinary gains and losses–13,054735,231

IncomeCost of sales

ExpensesNon-operating income andexpenses

Operatingincome/loss

Net sales

Change

3,275

3,061

214

17,946

17,86086

41,64567,907–26,262

5,773

2,566

3,207

835

496

338

–

2,101–2,101

1,369

835

533

7,979

6,001

1,977

6,042

8,400

–2,357

233

1,167

–934

117

802

–685

214

406

–191

Write-off of investments in securities

333

839

–506

Loss on impairment of fixed assets
Special allowance to employees retired
under early retirement scheme
Loss on change in equity in affiliatedcompanies
Loss on business retreat
Loss of compensation on businessretreatOther extraordinary losses

2,738

8,328

–5,590

–70

–70

442

208

233

3,826

–

3,826

1,010

–

1,010

950

2,815

–1,864

15,91023,039–7,12933,71450,869–17,154

Current income taxes

15,932

19,867–3,934

Prior years’ adjustment income taxes–2,231––2,231

Differed income taxes
Minority interests in net income of consolidated
subsidiaries
Net income–1,257

3,666–4,923784

2,926–2,142

20,48524,408–3,922

Total
Income before income tax and minority interests

Page 4 of 9

Consolidated Statements of Changes in Shareholders’ Equity
All yen figures are rounded down to the nearest one million yen.

FY3/07 (April 1, 2006 – March 31, 2007)(Unit: Millions of Yen)
Shareholders’ equity

Balance at March 31, 2006
Changes during the period
Dividends *1

Commonstock

Additional
paid-in
capitalRetainedearnings

Treasurystock, at
cost

Total
shareholders’equity69,49959,515

105,973–1,752233,235

Dividends
Bonuses to directors and corporate auditors
Net income
Increase due to increase in consolidated
subsidiaries
Decrease due to increase in consolidated
subsidiaries
Increase due to merger of consolidated
subsidiaries
Reversal of land revaluation excess
Reversal of accrued retirement benefits todirectors and corporate auditors
Acquisition of treasury stock
Disposal of treasury stock
Changes in items other than shareholders’ equity(net)Total changes during the period
Balance at March 31, 2007

–2,339–1,869–2,339–1,869–65
24,408–65
24,408

87

87

–87

–87

32

32

12

12

–24

–24

353
–
69,499353
59,86820,154
126,127

–271
354

–271
707

83
–1,66920,590253,826

Valuation and translation adjustments

Balance at March 31, 2006
Changes during the period
Dividends *1
Dividends
Bonuses to directors andcorporate auditors
Net income
Increase due to increase inconsolidated subsidiaries
Decrease due to increase inconsolidated subsidiaries
Increase due to merger ofconsolidated subsidiaries
Reversal of land revaluation
excess
Reversal of accrued retirement
benefits to directors andcorporate auditors
Acquisition of treasury stock
Disposal of treasury stock
Changes in items other thanshareholders’ equity (net)Total changes during the period
Balance at March 31, 2007

Unrealized
gain on othersecurities

Net
unrealized
gain onderivatives

Landrevaluation
excessForeigncurrencytranslation
adjustments

Accumulated
othercomprehensivelosses *2

Totalvaluationandtranslationadjustments

Minority
interests inconsolidated
subsidiaries

Total net
assets28,199

–

4,691

3,260

–

36,15235,768305,155–2,339–1,869–65
24,408
87
–87
32
12
–24
–271
707

–2,713

21

–13

7,460

–2,71321–13
7,460
25,48521
4,677
10,720*1 Appropriation of profit approved at general meeting of stockholders in June, 2006

–1,740

3,013

878

3,891

–1,740–1,7403,013
39,165878
36,64624,482
329,637*2 Appropriation of unfunded retirement benefit obligation due to change in accounting standards at overseas subsidiaries

Page 5 of 9

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

FY3/08 (April 1, 2007 – March 31, 2008)(Unit: Millions of Yen)
Shareholders’ equity

Balance at March 31, 2007
Changes during the period

Commonstock

Additional
paid-in
capitalRetainedearnings

Treasurystock, atcost

Total
shareholders’equity69,49959,868126,127–1,669253,826–191
171–3,753
20,485
64
–191
1,058

–20
–1,68917,663
271,489–3,753
20,48564

Dividends
Net income
Reversal of land revaluation excess
Acquisition of treasury stockDisposal of treasury stock
Changes in items other than shareholders’ equity(net)Total changes during the period
Balance at March 31, 2008

887–
69,499887
60,756

16,796
142,923

Valuation and translation adjustments

Balance at March 31, 2007
Changes during the period
Dividends
Net income
Reversal of land revaluation
excessAcquisition of treasury stock
Disposal of treasury stock
Changes in items other thanshareholders’ equity (net)Total changes during the period
Balance at March 31, 2008

Unrealized
gain on othersecurities

Net
unrealizedgain(loss) on
derivatives

Landrevaluation
excessForeigncurrencytranslation
adjustments

Accumulated
othercomprehensive
losses *Totalvaluation
andtranslation
adjustments

Minority
interests inconsolidated
subsidiaries

Total net
assets

25,48521

4,677

10,720–1,74039,16536,646329,637–3,753
20,485
64
–191
1,058

–15,133–67–83–5,251–230–20,766

1,054–19,711–15,133–67–83–5,251–230–20,766
1,054
10,352
–45
4,594
5,469
–1,971
18,39937,701* Appropriation of unfunded retirement benefit obligation due to change in accounting standards at overseas subsidiaries–2,047
327,589

Page 6 of 9

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

TermItemI
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Equity in losses of unconsolidated subsidiaries andaffiliates
Stock valuation loss
Gain on return of retirement benefit trust
Decrease in accrued retirement benefits
Increase in accrued retirement benefits to directors andcorporate auditors
Increase in bonus reserve
Increase(decrease) in bonus reserve for directors andcorporate auditors
Decrease in allowance for doubtful accounts
Increase in other reserves
Interest and dividends received
Interest expenses
Gain on sale of investments in securities
Loss on sale of investments in securities
Loss on changes of ownership in subsidiaries and affiliates
Liquidation of unconsolidated subsidiaries and affiliates
Gain on disposal of fixed assets
Loss on disposal of fixed assets
Loss on impairment of fixed assets
Increase(decrease) in notes and accounts receivable
Increase in inventories
Decrease in notes and accounts payable
Payment of bonuses to directors and corporate auditors
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Prior year’s adjustment income taxes
Net cash provided by operating activities(Unit: Millions of Yen)
FY3/08Change4/1/07 –3/31/08

FY3/07
4/1/06 –3/31/07
50,86938,960946

33,71443,531
855–17,154
4,570
–91

3,339

3,830

491

839
–2,101–5,146333—–1,920

–506
2,101
3,226

85

300

214

404

197

–206

65

–5–71

–388
206
–2,835
11,460
–496
406
208
802
–2,5668,400
8,328–9,845–5,502–6,545–79
10,219100,035
2,913–11,576–28,758—–6,113271–3,201
10,840
–835
214
442
117
–5,773
6,042
2,738
17,611–6,279–7,678—3,185
92,4193,179–10,810–16,3132,885–5,724
65
–366
–619
–338
–191
233
–685
–3,207–2,357–5,59027,457–776–1,132
79–7,034–7,615265
765
12,444
2,885

62,61371,3598,745

Page 7 of 9

TermItemII Cash flows from investing activities
Decrease in time deposits
Purchase of property, plant and equipment
Proceeds from sale of fixed assets
Payments for purchase of other depreciable assets
Proceeds from sale of other depreciable assets
Payments for purchase of investments in securities
Proceeds from sale of investments in securities
Payments for sale of stock in subsidiaries due tochange in the scope of consolidation
Long-term loans madeCollections of long-term loans receivable
Other
Net cash used by investing activities
III Cash flows from financing activities
Net decrease in short-term borrowings
Net increase in commercial paper
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Issue of shares
Disposal of treasury stock
Repayment of treasury stocks
Cash dividend payments by parent company
Cash dividend payments to minority shareholders
Net cash used in financing activities
IV Effect of exchange rate changes on cash and cash
equivalents
V Decrease in cash and cash equivalents
VI Cash and cash equivalents at beginning of term
VII Cash and cash equivalents at beginning of term resulting
from change in scope of consolidation
VIII Increase in cash and cash equivalents at beginning ofterm resulting from merger of consolidated subsidiaries
IX Cash and cash equivalents at end of term

FY3/07
4/1/06 –3/31/07

FY3/084/1/07 –3/31/08

Change923–46,597
7,819
–341
3
–2,0491,154

44–56,869
7,155–4,72553–3,475
1,892–879–10,271–664–4,38350–1,425
738

–12

–105

–93

–3,4304,976–147–1,671
2,867–1,841

1,759–2,108–1,694–37,702–56,674–18,971–37,067
11,00093,344–77,586
23,270–61,989
157
707
–271
–4,209–628–53,272–22,045
8,000
53,518–56,830575–2,274
2,427
1,058
–191
–3,753–634–20,150

15,021–3,000–39,826
20,755–22,695
59,715
2,269
351
79
455
–5
33,122

598

–299

–898

–27,761
93,489–5,76365,65721,997–27,832

–90

135

225

19

22

3

65,65760,051–5,605

Page 8 of 9

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

Segment information(Unit: Millions of Yen)
MineralEnvironmental
CementResources
Business
Business
Business
Sales and operating
incomeSales(1) Sales to565,520
outsidecustomers(2) Intersegment
14,464
sales andtransfers
Total
579,985
Operating519,791
expenses
Operating60,193incomeFY3/07 (4/1/06 – 3/31/07)
Construction Ceramics &Materials Electronics Other
Business
Business

Total

Eliminations
Consolidated
or corporate
total
assets78,52962,322

96,62966,91270,715

940,630—

940,630

23,002

5,381

8,584

7

45,57597,015(97,015)—

101,531

67,704105,214

66,919 116,291 1,037,646(97,015)940,630

97,01364,952

102,466

65,903 109,694

959,821(95,884)

863,937

4,518

2,752

2,747

1,015

77,824(1,131)

76,692

6,597(Unit: Millions of Yen)
MineralCementEnvironmentalResources
Business
Business
Business
Sales and operating
incomeSales(1) Sales to557,067
outsidecustomers(2) Intersegment
13,589sales andtransfers
Total
570,656
Operating531,700
expenses
Operating
38,955incomeFY3/08 (4/1/07 – 3/31/08)
Construction Ceramics &Materials Electronics Other
Business
Business

Total

Eliminations
Consolidated
or corporate
total
assets83,92762,22398,24855,84870,262

927,576—

927,576

20,626

6,3768,688

17

46,211

95,510(95,510)—

104,553

68,600106,936

55,865 116,473 1,023,086(95,510)927,576

101,039

64,578105,986

55,743 111,386

970,435(94,410)876,025

3,514

4,021

949

52,650(1,099)51,551

121

5,087

Overseas sales

I
Overseas sales
II Consolidated sales
III Ratio of overseas sales to consolidated sales

I
Overseas sales
II Consolidated sales
III Ratio of overseas sales to consolidated sales

North America
127,642—
13.6%(Unit: Millions of Yen)
FY3/07 (4/1/06 – 3/31/07)
AsiaOtherTotal
89,096
16,352233,091——
940,630
9.5%
1.7%
24.8%

North America
120,764—
13.0%(Unit: Millions of Yen)
FY3/08 (4/1/07 – 3/31/08)
Asia
Other
Total
87,494
20,124228,384——
927,576
9.4%
2.2%
24.6%

Page 9 of 9