SUMMARY OF CONSOLIDATED FINANCIAL RESULTS OF TAIHEIYO CEMENT CORPORATIONFOR THE FISCAL 2005 ENDED MARCH 31, 2005

May 17, 2005
Company: Taiheiyo Cement Corporation
Stock code: 5233
URL:
http://www.taiheiyo-cement.co.jp/

Fiscal 2004 : April 1, 2003 - March 31, 2004
Fiscal 2005 : April 1, 2004 - March 31, 2005
Fiscal 2006 1H: April 1, 2005 - September 30, 2005
Fiscal 2006 : April 1, 2005 - March 31, 2006

The accompanying consolidated financial results are not intended to present the financial results in accordancewith accounting principles and practices generally in countries and jurisdictions other than Japan.
1.FY3/05 consolidated results ( April 1, 2004 - March 31, 2005 )(1)Consolidated results of operations
All yen figures are rounded down to the nearest one million yen.
Ordinary income
Net Sales
Operating income
Millions of Yen% Millions of Yen% Millions of Yen%FY3/05
FY3/04

872,686
879,484
Net income
Millions of Yen

FY3/05
FY3/04-0.8-5.2

48,18544,8477.4-2.6

38,26435,142%

Yen

Diluted EPS
Yen

14,412 -12.7
16,518 163.8

15.33
17.71

14.80
17.46

EPS

(2)Consolidated financial position
Total assets
Shareholders' equity
Millions of Yen
Millions of Yen
236,734
222,178

1,247,532
1,303,997

FY3/05
FY3/048.9
50.3

Equity ratio Equity per share%Yen
19.0
17.0

253.26238.73(3)Consolidated cash flows
Cash flows fromoperating activities

FY3/05
FY3/04

Cash flows frominvesting activities

Millions of Yen

Millions of Yen

54,29955,6753,010
31,585

Cash and cash
equivalents at end ofterm
Millions of Yen
Millions of Yen

Cash flows fromfinancing activities-69,843-96,003

67,47380,534

2.FY3/06 consolidated earnings forecast ( April 1, 2005 - March 31, 2006 )Net income
Net Sales
Ordinary income
Millions of Yen
Millions of Yen
Millions of Yen
420,000
1H FY3/06
870,000
FY3/06
Reference: FY3/06 EPS forecast -1.06Yen

12,00041,000-15,000-1,000This forecast is based on the information available at the date of publication of this material and assumptions atsame date with respect to the various factors which might have impact on the future financial results. Actual resu
may differ materially from forecast due to various factors.

Consolidated Balance Sheets(Unit: Millions of Yen)
Item
AssetsCurrent assets
Cash and time deposits
Notes and accounts receivable
Inventories
Deffered income taxes
Short-term loans
Other current assets
Allowance for doubtful accounts
Fixed assets
A. Tangible fixed assets
Buildings and structures
Machinery, equipment
LandConstruction in progress
Other tangible fixed assets
B. Intangible fixed assets
Trade rights
Consolidation adjustments
Other intangible fixed assets
C. Investments and other assets
Investment securities
Long-term loans
Deffered income taxes
Other investments and assets
Allowance for doutful accountsTotal Assets
Liabilities
Current liabilities
Notes and accounts payable
Short-term borrowings
Bonds (due within one year)
Income taxes payable
Deffered income taxes
Bonus reserve
Other reserves
Other current liabilities
Fixed liabilities
Bonds
Convertible bonds
Long-term borrowings
Deffered income taxes
Deffered income taxes from revaluation excess
Accrued for retirement benefits
Accrued for retirement benefits to directors andcorporate auditors
Special repair reserve
Other fixed liabilities
Total liabilities
Minority interests
Shareholders' equity
Capital stock
Additional paid in capitalRetained earnings
Revaluation excess
Unrealized gain on other securities
Foreign currency translation adjustments
Treasury stock
Total shareholders' equity
Total liabilities, minority interests and shareholders'equity

FY3/05

FY3/04(As of 3/31/05)(As of 3/31/04)

Change366,243
73,364
190,071
67,811
3,592
16,89817,094-2,589881,289
608,111201,052
165,920
202,639
13,20725,29247,06013,016
6,955
27,088226,117
158,715
8,728
15,424
59,795-16,547

364,067
85,851
188,360
66,2182,903
15,1928,185-2,643939,929654,826
210,830
175,314222,279
20,81425,58650,964
13,843
8,067
29,053
234,138
159,375
9,581
15,73265,304-15,855

2,175-12,486
1,710
1,593
689
1,706
8,908
53
-58,640-46,714-9,778-9,394-19,640-7,607-294-3,904-827-1,111-1,965-8,020
-659
-852
-308
-5,508-691

1,247,532

1,303,997-56,464

547,404
117,476
332,310
20,890
3,948
69
5,871
628
66,210433,525
63,49034,000215,266
28,182
5,937
33,622566,375
116,286
350,72730,570
7,207
161
5,483
614
55,323486,335
83,31012,000261,913
25,211
5,948
35,689-18,970
1,189-18,416-9,680-3,259-91387
13
10,886-52,810-19,820
22,000-46,647
2,971-10-2,067

2,304

3,070

-766

141
50,580980,929
29,867104
59,086
1,052,711
29,10736-8,506-71,781760

69,49958,605
101,337
4,855
19,885-14,725-2,723
236,734

69,49958,48988,7695,373
16,403-13,312-3,043
222,178

115
12,568-517
3,482-1,413320
14,555

1,247,532

1,303,997-56,464

Consolidated Statements of Income
FY3/05

Item(Unit: Millions of Yen)
FY3/04
Change879,484-6,797

Cost of sales

682,891

688,442-5,551

Selling, general and administrative expenses

141,610

146,194-4,584

Income from operation

48,18544,847

3,338

5,346

5,827

-481

847

504

342

4,141

6,119

-1,978

10,334

12,451-2,116

Interest expenses

12,62715,011-2,384

Other non-operating expenses

7,627

7,144

483

Total

20,254

22,155-1,90038,26435,142

3,122

Gain on disposal of fixed assets

22,80017,374

5,426

Gain on sale of investment securities

7,545

3,497

4,048

Gain on dilution of ownership in affiliated companies

1,373

2,874-1,501

470

259

211

Total

32,19024,005

8,185

Loss on disposal of fixed assets

27,071

14,613

12,458Provision for allowance for doubtful accounts

4,299

1,304

2,995

Liquidation of unconsolidated subsidiaries and affiliates

2,477

2,006

471

-

551

-551

666

-666

Stock valuation loss
Special allowance to employees retired under early
retirement scheme
Loss on closure of a cement plant2,029

182

1,846

739

2,152-1,413

518

5,603

-5,085Business discontinuation costs

6,898-

6,898

926

4,786-3,860

45,626

31,202

14,424

Net income before income taxes

24,82827,945-3,117

Income taxes

9,316

12,190-2,874

Income tax adjustments

891-3,165

4,056

Minority interest income

207

2,401-2,193

14,412

16,518-2,106

Interest and dividends received
Equity in earnings of unconsolidated subsidiaries andaffiliates
Other non-operating income
TotalExpenses

Non-operating income andexpenses

Income(4/1/03-3/31/04)

872,686

Operatingincome/loss(4/1/04-3/31/05)

Sales

GainsOrdinary income

Loss on sale of stock of affiliates
LossesExtraordinary gains and losses

Other extraordinary gains

Loss on sale of investment securities

Other extraordinary losses
Total

Net income

Consolidated Statements of Retained Earnings(Unit: Millions of Yen)
Item
Additional paid in capital
Ⅰ Additional paid capital at beginning of term
Ⅱ Increase in additional paid in capitalGain on disposal of treasury stock
Ⅲ Additional paid in capital at end of term
Retained earnings
Ⅰ Retained earnings at beginning of term
Ⅱ Increase in retained earnings
Net income
Increase resulting from merger of consolidated subsidiaries
Reversal of land revaluation difference
Ⅲ Decrease in retained earnings
Dividends
Bonuses to directors and corporate auditors
Ⅳ Retains earnings at end of term

FY3/05

FY3/04(4/1/04-3/31/05)(4/1/03-3/31/04)

58,489115
115

Change58,229
260
260

260
-144
-144

58,60558,489115

88,76914,932

74,61016,52014,158-1,587

14,4122517

16,518
1
2,364

2,314
50

-2,106
2
516
2,361

2,298
63
101,337215-1288,769

12,568

Consolidated Statements of Cash Flows(Unit: Millions of Yen)
Term
Item
I Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortisation of diffarence between equity in net assets of consolidated
subsidiaries and affiliates
Equity in gains of unconsolidated subsidiaries and affiliates
Stock valuation loss
Increase/decrease in accrued for retirement benefits
Increase/decrease in accrued for retirement benefits for directors andcorporate auditors
Increase/Decrease in bonus reserve
Increase/Decrease in allowance for doubtful accounts
Increase in other reserves
Interest and dividend received
Interest expenses
Gain on dilution of ownership in affiliated companies
Gain on sale of investment securities
Loss on sale of investment securities
Liquidation of unconsolidated subsidiaries and affiliates
Gain on disposal of fixed assets
Loss on disposal of fixed assets
Increase in notes and accounts recievable
Increase/Decrease in inventories
Increase/Decrease in notes and accounts payable
Payment of bonuses to directors and corporate auditors
OtherSub total
Interest and dividend received
Interest paid
Income taxes paid
Net cash provided by operating activities
II Cash flows from investing activities
Payments for deposit in/proceeds from withdrawal from 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 investment securities
Proceeds from sale of investment securities
Payments from sale of subsidiaries stock resulting in change in thescope of consolidation
Long-term loans madeCollections of long-term loans receivable
OtherNet cash provided by/used in investing activities
III Cash flows from financing activities
Net decrease in short-term borrowings
Net decrease 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 stock
Cash dividend payments by parent company
Cash dividend payments to minority shareholders
Net cash used in financing activities

FY3/05

FY3/04(4/1/04-3/31/05)(4/1/03-3/31/04)

Change24,82840,33927,945
45,228-3,117-4,888

1,177

943

233

-847
2,029
-1,905

-504
182
172

-342
1,846
-2,077-766

356-1,122407
647
49-5,346
12,627-1,373-7,545666
2,477-22,800
27,071-2,821-2,423
1,691
-60
6,783
74,908
7,083-12,887-14,805
54,299-479-2,10429-5,82715,011-2,874-3,497551
2,006-17,374
18,653-6,037
1,884
-611
-79
3,226
76,803
2,648-16,483-7,292
55,675

887
2,751
20
481
-2,3841,500-4,048114
471-5,426
8,417
3,216-4,307
2,303
18
3,556
-1,894
4,435
3,595-7,512-1,376-636-33,508
26,827-544
1-934
11,064

56-32,110
46,707-193
48-1,582
10,437-693-1,397-19,879
-350
-47
647
626

--194

194

-11,630
10,357
2,013
3,010-22,953
26,731
4,637
31,585

11,322-16,374-2,623-28,574-28,21339,720-72,720
23,100-30,600
1,542
240
-193
-2,314-404-69,843-21,240-8,00056,258-77,526
27,600-72,561
1,096
1,048
-83
-2,298-296-96,003-6,9738,000-16,538
4,806-4,50041,961445-808
-109
-16
-108
26,16096-1,883

1,980

Ⅴ Decrease in cash and cash equivalents-12,436-10,626-1,810Ⅵ Cash and cash equivalents at beginnig of term

80,534

91,234-10,700

75

-89

165

-700

15-71567,47380,534-13,061

Ⅳ Effect of exchange rate changes on cash and cash equivalents

Ⅶ Cash and cash equivalents at beginning of term resulting from change inscope of consolidation
Ⅷ Cash and cash equivalents at beginning of term resulting from marger ofconsolidated subsidiariesⅨ Cash and cash equivalents at end of term

Segment information
Segment information(Unit: Millions of Yen)

CementⅠ Sales and operating income(1) Sales to outside customers(2) Intersegment sales and transfers
Total
Operating expenses
Operating income
Ⅱ Assets, depresiation, capital
expenditure
AssetsDepresiation
Capital expenditure

FY 2005 (April 1, 2004 - March 31, 2005)
Construction
Minerals
Environmenta
andCeramics &and
Otherl Business construction Electronics
aggregatesmaterials

Eliminations
Consolidatedandtotal
corporate

501,590
14,197515,787
482,445
33,342

79,901
19,70699,607
97,5402,066

53,9805,066
59,04754,417
4,629

95,926
7,615
103,541
101,942
1,599

67,96012
67,973
66,1401,832

73,326
43,341
116,667
110,6316,036

872,686
89,938962,625
913,11749,507(-)(89,938)(89,938)(88,616)(1,322)872,686
872,686
824,501
48,185669,229
23,225
16,187

148,377
5,198
3,686

26,022
1,015
1,071

105,651
2,636
1,354

33,6441,029
2,830

307,802
5,767
3,222

1,290,727
38,87228,353(43,194)
1,466
5,905

1,247,532
40,33934,259

Overseas sales

Ⅰ Overseas sales
Ⅱ Consolidated sales
Ⅲ Ratio of overseas sales toconsolidated sales

Total(Unit: Millions of Yen)
FY 2005 ( April 1, 2004 - March 31, 2005 )
North
Asia
OtherTotal
America
79,601
88,113
10,384
178,100
872,696
9.1%

10.1%

1.2%

20.4%