Reference Materials of Financial Results
for the Six Months Ended September 30, 2023

November 9, 2023

Page 0Contents
1. Highlights of Consolidated Financial Results

Page 2

3. Forecast for the Fiscal 2024

Page 9(1) Consolidated Statements of Income
2. Financial Results for the Six Months Ended
September 30, 2023
(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(1) Change in Interest-bearing Debt

(4) Consolidated Statements of Cash Flows(3) Change in Depreciation Expenses

Page 13(2) Change in Capital Investment(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(Million yen)

FY2023Six months
Net sales

FY2024Six months

Change375,982

418,554

42,572

Operating profit(313)

17,752

18,065

Ordinary profit(84)

20,11520,199(16,455)

13,61730,072

Profit attributable to owners of parent＜ 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 Sep. 30,
2023
2023
39.0
40.1

Change
1.1

22.9

23.3

0.4

4,228.5
FY2023Six months(140.6)

4,552.0
FY2024Six months
116.2

323.5
Change256.8

Page 2

2. Financial Results for the Six Months
Ended September 30, 2023
(1) Consolidated Segment Information
Net Sales and Operating Profit by Reportable Segments
Net sales
FY2023Six months

FY2024Six months(Million yen)

Operating profit
ChangeFY2023Six months

FY2024Six months

ChangeCementDomestic

123,839

144,208

20,369(17,559)(6,064)

11,495Business

Overseas Subsidiaries, etc.

129,006

154,167

25,16010,14913,940

3,791

Total

252,846

298,375

45,528(7,410)7,876

15,286

Mineral Resources Business

39,76342,904

3,140

2,710

4,088

1,378

Environmental Business

39,50432,505(6,998)

2,848

3,036

188

Construction Materials Business

30,72334,189

3,465

60

1,881

1,820

Other

41,69940,346(1,353)

1,199

946

(253)

Total

404,537

448,32143,783(591)

17,82918,421

Elimination(28,554)(29,766)(1,211)278(77)(355)

Consolidated Total

375,982

418,554

42,572(313)

17,752

18,065

Page 3

2. Financial Results for the Six Months
Ended September 30, 2023
(1) Consolidated Segment Information
Average exchange rate applied(Thousand tons) by overseas subsidiaries

Sales Volume of Cement
FY2023S ix months

Cement Business
Net Sales

Domestic

FY2024
S ix months

ChangeDomestic

6,566

6,486

(79)

Export1,419

1,232(187)(Yen/US$)FY2023Six months

FY2024Six months

Change123.1135.0

11.9(Million yen)

FY2023Six months

FY2024Six months

123,839

144,208

ChangeMain Factors of Changes in Net Sales and Operating Profit

20,369 Decrease in sales volume of domestic cement and soil stabilizers -0.9 billion yen
Decrease in export cement volume -1.4 billion yen
Price difference in domestic cement and soil stabilizers +22.4 billion yen
Price difference in export cement -1.2 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc. +1.4 billion yen

Overseas
Subsidiaries, etc.

129,006Total

252,846

298,375

45,528(17,559)(6,064)

11,495 Decrease in sales volume of domestic cement and soil stabilizers -1.7 billion yen

Operating Profit Domestic

154,167

25,160 U.S.A. +US$175 million
China -US$70 million, Asia and other -US$4 million
Effect of foreign exchange, etc. +12.6 billion yen

Decrease in export cement volume -0.4 billion yen
Price difference in domestic cement and soil stabilizers +20.7 billion yen
Increase in net export cement revenue +0.3 billion yen
Increase in variable cost -8.3 billion yen
Decrease in fixed cost +1.3 billion yen
Decrease in income from subsidiaries producing or selling cement or ready-mixed concrete, etc. -0.5 billion yen

Overseas
Subsidiaries, etc.

10,149Total(7,410)

13,9403,791 U.S.A. +US$32 million
China +US$0 million, Asia and other -US$13 million
Effect of foreign exchange, etc. +1.4 billion yen

7,876

15,286

Page 42. Financial Results for the Six Months
Ended September 30, 2023
(1) Consolidated Segment Information
Reportable Segments (Excluding Cement Business) and Other(Million yen)

FY2023Six months

FY2024Six months

ChangeMain Factors of Changes in Net Sales and Operating Profit

MineralResources
Business

Net Sales

39,76342,904

3,140

Operating Profit

2,710

4,088

1,378 Increase in various type of costs passed on to sales prices

Environmental
Business

Net Sales

39,50432,505(6,998) Decrease in fuel sales

Operating Profit

2,848

3,036

Construction
Materials
Business

Net Sales

30,72334,189

3,465

60

1,881

1,820 Price optimization of ALC (Autoclaved Lightweight Concrete) and construction materials

OtherNet Sales

41,69940,346(1,353)

Operating Profit

1,199946(253)

Increase in aggregate sales volume in the Hokkaido, Kansai and Chubu region

188 Sales volume of gypsum remained strong

Ground improvement projects were strong

Operating Profit

Page 5

2. Financial Results for the Six Months
Ended September 30, 2023
(2) Consolidated Statements of Income (Items below Operating Profit)(Million yen)

FY2023Six months(313)

FY2024Six months
17,752Non-operating income and expenses

229

2,363

2,134

Ordinary profit(84)

20,11520,199Extraordinary income and losses(1,298)

(425)

873

Profit before income taxes(1,382)

19,69021,072

Income taxes

14,505

5,956(8,548)567

116(451)(16,455)

13,61730,072

Operating profit

Profit attributable to non-controlling interest
Profit attributable to owners of parent

Change18,065

Page 62. Financial Results for the Six Months
Ended September 30, 2023
(3) Consolidated Balance Sheets(Million yen)

Trade receivables

182,963

217,280

34,316Inventories

138,373

129,824(8,549)Other

29,22825,197(4,031)

Total current assets

430,408

454,448

24,040Total property, plant and equipment

620,083649,223

29,139Total intangible assets

39,766

40,599832

Total investments and other assets

178,604

188,347

9,743

Total non-current assets
Total assets

838,454878,170

1,268,862

1,332,619

39,716

Current liabilities

As of Mar. As of Sep.
31, 2023
30, 2023
385,784
393,840

Change8,055

Non-current liabilities

354,221369,668

15,447

Total liabilities

740,005

763,508

23,503

Share capital

86,174

86,174-Capital surplus

49,72949,78859

Retained earnings

342,880

352,382

9,502

Treasury shares(13,738)(12,927)

810

Total shareholders' equity

465,045475,417

10,371

Accumulated other comprehensive income

29,911

58,96929,057

Non-controlling interests

33,89934,723823

Total net assets

528,857

569,110

40,253

1,268,862

1,332,619

63,756

As of Mar.
31, 2023

As of Sep.
30, 2023

Shareholders' equity

2,304

Liabilities

ChangeNet assets

Non-current assets

Current assets

Cash and deposits

As of Mar. As of Sep.
31, 2023
30, 2023
79,842
82,14763,756 Total liabilities and net assets※Trade receivables include "Notes and accounts receivable-trade, and contract assets" and "Electronically recorded monetary claims - operating".

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

As of Jun.
30, 2023

Change132.70144.99

12.29

Interest-bearing debt (Million yen)

403,485

388,547

Change(14,938)

Page 7

2. Financial Results for the Six Months
Ended September 30, 2023
(4) Consolidated Statements of Cash Flows(Million yen)

FY2023Six months

FY2024Six months

ChangeCash flows from operating activities(15,013)54,33069,344

Cash flows from investing activities(57,583)(30,229)

27,354

Cash flows from financing activities

91,628(24,895)(116,523)

Effect of exchange rate change on cash and cash equivalents

1,558

2,708

1,149

Net increase (decrease) in cash and cash equivalents

20,5901,914(18,675)

24

39

15

Cash and cash equivalents at beginning of period

50,21370,82820,614

Cash and cash equivalents at end of period

70,82872,783

1,954

Other

＜ Indexes＞

As of Mar. 31, As of Sep. 30,
2023
2023

ChangeCurrent ratio (%)

111.6

115.4

3.8

Net debt/equity ratio (Times)

0.65

0.57

(0.08)
Page 83. Forecast for the Fiscal 2024
(1) Consolidated Statements of Income
Revised from previous forecast (announced on May 11th, 2023)(Hundred million yen)

FY2023(Actual)
Net sales
Operating profit
Ordinary profit
Extraordinary income and losses

8,095
4410(332)

FY2024FY2024
Change(Previous(Current
Compared toYear-on-Year previous forecastforecast)
forecast)
9,200
8,940
845
(260)
580
580
536
560
590
580
30
400
400
732
-

＜Preconditions＞
Domestic demand of cement (Ten thousand tons)

3,726

3,800

3,550(176)(250)

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)

FY2024(Currentforecast)

Operating profit
ChangeFY2024(Currentforecast)

FY2023(Actual)ChangeCementDomestic

2,557

3,050

493

(369)

5374

Business

Overseas Subsidiaries, etc.

2,973

3,300

327

220

335

115

Total

5,530

6,350

820

(148)

340

488

Mineral Resources Business

827

890

63

55

81

26

Environmental Business

779

690

(89)

5866

8

Construction Materials Business

682

730

4823

4623

Other869

930

6151510Total

8,688

9,590

902

39584

545

Elimination

(593)

(650)

(57)

4(4)

(8)

Consolidated Total

8,095

8,940

845

44580

536
Page 10

3. Forecast for the Fiscal 2024
(2) Consolidated Segment Information

Average exchange rate applied bySales Volume of Cement
FY2023(Actual)Cement Business

Net Sales

Domestic(Thousand tons) overseas subsidiaries

FY2024(Currentforecast)

ChangeDomestic

13,12913,20071

Export

2,438

2,750

312

(Yen/US$)FY2023(Actual)FY2024(Currentforecast)

Change

131.6

140.0

8.4
(Hundred million yen)

FY2024FY2023(Current(Actual)
forecast)
2,557
3,050

ChangeMain Factors of Changes in Net Sales and Operating Profit

493 Increase in sales volume of domestic cement and soil stabilizers +2.1 billion yen
Increase in export cement volume +2.4 billion yen
Price difference in domestic cement and soil stabilizers +40.4 billion yen
Price difference in export cement -2.4 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc. +6.8 billion yen

Overseas
Subsidiaries, etc.

2,973

Total

5,530

6,350(369)5Operating Profit Domestic

3,300

327 U.S.A. +US$219 million, China -US$124 million,
Asia and other +US$10 million, Effect of foreign exchange, etc. +19.0 billion yen

820
374 Decrease in sales volume of domestic cement and soil stabilizers -2.4 billion yen
Increase in export cement volume +0.4 billion yen
Price difference in domestic cement and soil stabilizers +37.8 billion yen
Increase in net export cement revenue +0.2 billion yen
Decrease in variable cost +2.3 billion yen
Increase in fixed cost -2.5 billion yen
Increase in income from subsidiaries producing or selling cement or ready-mixed concrete, etc. +1.6 billion yen

Overseas
Subsidiaries, etc.
Total

220335115 U.S.A +US$69 million, China +US$10 million,
Asia and other -US$10 million, Effect of foreign exchange, etc. +2.4 billion yen(148)340488Page 11

3. Forecast for the Fiscal 2024
(2) Consolidated Segment Information
Net Sales and Operating Profit by Reportable Segments
Net sales
FY2024(Previousforecast)

FY2024(Currentforecast)(Hundred million yen)

Operating profitChangeFY2024(Previousforecast)

FY2024(Currentforecast)

ChangeCementDomestic

3,220

3,050(170)735(68)Business

Overseas Subsidiaries, etc.

3,220

3,300

80287335

48

Total

6,440

6,350(90)360

340(20)Mineral Resources Business

920

890

(30)

76

81

5

Environmental Business

810

690

(120)

6966

(3)

Construction Materials Business

770

730

(40)

3246

14

Other

950

930

(20)

5051

1

Total

9,890

9,590

(300)

587

584

(3)

Elimination

(690)

(650)

40(7)

(4)

3

Consolidated Total

9,200

8,940(260)

580

580

-Page 12

4. Reference Information

Page 13

4. Reference Information

Page 14

4. Reference Information

Page 15

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 16