Reference Materials of Financial Results
for the First Half of Fiscal 2022
ending March 31, 2022

November 11, 2021

Contents
1. Highlights of Consolidated Financial Results

Page 2

5. Forecast for the Fiscal 2022

Page 12(1) Consolidated Statements of Income
2. Trend in Construction Investments andDomestic Demand for Cement

Page 3

3. Volume of Sales and Shipment Results byRegion

Page 4(2) Consolidated Segment Information

6. Reference Information

Page 15(1) Change in Interest-bearing Debt

(1) Volume of Sales of Cement by Region(Excluding Imports)(2) Change in Capital Investment(2) Volume of Shipment of Ready-mixed
Concrete by Region(3) Change in Depreciation Expenses(4) Change in Experiment and Research Expenses

4. Financial Results for the First Half of Fiscal2022(1) Consolidated Statements of Income

Page 6(5) Sales Volume of Cement in Overseas Subsidiaries(6) Overview of Businesses in the U.S.A.

(2) Consolidated Segment Information(3) Consolidated Balance Sheets(4) Consolidated Statements of Cash Flows

Page 1

1. Highlights of Consolidated Financial Results
FY 2020(Millionsof yen)

ChangeComponents of changeFirst Half ofFY2021

First Half ofFY2022Net sales

420,627

339,798(80,828)

Operating income

26,12625,812(314)

Ordinary income

26,640FY 2019 26,578

FY 2020(61)Profit attributable to owners of parent

18,461＜ Indexes ＞

19,485

As of Mar 31, As of Sep 30,
2021
2021

ChangeRevenuestandard
impactChangeChange

45.1

45.5

0.4

Equity ratio based on market value (%)

33.1

25.0(8.1)

3,971.3

4,235.0

263.7First Half ofFY2021

First Half ofFY2022

152.2

163.9

Earnings per share (yen)14,391

1,023

Equity ratio (%)

Equity per share (yen)(95,219)

Net change

Change11.7
Page 2

2. Trend in Construction Investments andDomestic Demand for Cement
Trillions of yen

10 thousand tons

70

7,000
6,351
5,969

60

5,757

5,909

5,899

6,000

5,551
5,009
4,771

50
4,273

4,161

4,265

4,458

5,000

4,555
4,267

4,178

4,188

4,259

4,097

40
3,099
30

2,884

2,764

2,885

2,833

20

855

1037

1,027

959

1,002

4,000

3,000
2,102

988

3,860

2,736
2,445

10

3,867

1,067

1,105

1,982

2,016

997

1,001

2,134

963

2,291

850

2,261

942

2,115

1,0582,021

1,1532,084

1,1812,077

1,0372,036

1,053

1,905

1,870

1,111

1,10002,0001,0000FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Estimate of construction investments (Left axis)

Domestic demand Full Year (Right axis)

Domestic demand 1st Half (Right axis)

Exports Full Year (Right axis)

Estimate of construction investments : for Fiscal 2003 to Fiscal 2021, Ministry of Land, Infrastructure, Transport and Tourism: for Fiscal 2022 (forecast), Ministry of Land, Infrastructure, Transport and Tourism
Domestic demand : for Fiscal 2003 to Fiscal 2021, Japan Cement Association： for Fiscal 2022, Our estimates
Exports: Japan Cement Association

Page 3

3. Volume of Sales and Shipment Results by Region(1) Volume of Sales of Cement by Region (Excluding Imports)
First Half of FY2020
Year-on-year
Volume of sales
change(Thousand tons)(%)

First Half of FY2021
Year-on-year
Volume of sales
change(Thousand tons)(%)

First Half of FY2022
Year-on-year
Volume of sales
change(Thousand tons)(%)

Hokkaido

1,048

0.0

1,068

2.01,025(4.1)

Tohoku1,936(5.0)

1,743(10.0)

1,634(6.2)

Kanto 14,730(3.5)

4,351(8.0)

4,484

3.1

Kanto 2

1,707(6.0)

1,705(0.1)

1,636(4.1)

Hokuriku

1,156

2.2

1,020(11.8)

878(13.9)

Tokai2,270(6.0)

2,105(7.3)

2,168

3.0

Kinki

2,703

3.7

2,610(3.4)

2,599(0.4)

Shikoku732

2.8

693(5.3)

633(8.6)

Chugoku

1,210

5.4

1,163(3.9)

1,114(4.2)

Kyushu2,362(2.0)

2,135(9.6)

2,160

1.2Okinawa

499

3.2

451(9.6)358(20.6)

Domestic Total

20,352(1.7)

19,045(6.4)

18,690(1.9)

Exports

5,017(4.6)

5,259

4.8

5,705

8.5

Total

25,369(2.3)

24,304(4.2)

24,395

0.4

Source : Japan Cement Association
Page 4

3. Volume of Sales and Shipment Results by Region(2) Volume of Shipment of Ready-mixed Concrete by Region
First Half of FY2020
Volume ofYear-on-year
shipmentchange(Thousand cubic(%)
meters)First Half of FY2021
Volume ofYear-on-year
shipmentchange(Thousand cubic(%)
meters)First Half of FY2022
Volume ofYear-on-year
shipmentchange(Thousand cubic(%)
meters)Hokkaido

1,920

5.1

1,862(3.0)

1,912

2.7

Tohoku3,682(6.8)

3,292(10.6)

2,963(10.0)

Kanto 1

10,119(5.3)

9,456(6.6)

9,729

2.9

Kanto 2

2,835(4.0)

2,962

4.5

2,793(5.7)

Hokuriku

2,383

0.4

2,133(10.5)

1,781(16.5)

Tokai4,665(1.9)

4,407(5.5)

4,610

4.6

Kinki

5,457

2.2

5,330(2.3)

5,334

0.1

Chugoku

2,340

8.1

2,260(3.4)

2,067(8.5)

Shikoku

1,559

5.2

1,534

(1.6)

1,475

(3.8)

Kyushu

5,783

(1.6)

5,173

(10.6)

4,943

(4.4)

Total

40,744(1.6)

38,409(5.7)

37,608(2.1)

Source : National Federation of Ready-mixed Concrete Industrial Associations
Page 5

4. Financial Results for the First Half of Fiscal 2022
(1) Consolidated Statements of Income(Millions of yen)
Components of changeFirst Half ofFY2021

First Half ofFY2022

Net Sales

420,627

339,798(80,828)

Cost of sales

331,929

252,307(79,621)

Selling, general and administrative expenses

62,57061,677(893)

Operating income

26,12625,812(314)513

766252

Ordinary income

26,64026,578(61)Extraordinary income and losses

(132)

2,600

2,733

Profit before income taxes

26,507

29,1792,671

Profit attributable to owners of parent

18,461

19,485

1,023

108.23107.82(0.41)

Non-operating income and expenses

Revenuestandard
impactChange(95,219)

Net change
14,391＜ Reference Information＞
Foreign exchange rate (yen/US$)

Page 6

4. Financial Results for the First Half of Fiscal 2022
(2) Consolidated Segment Information
Net Sales and Operating Income by Reportable Segments
Net SalesFirst Half of First Half of
FY2021
FY2022
Cement(Millions of yen)

Components of change

ChangeRevenuestandard
impactNet change

Operating Income
First Half of First Half ofFY2021
FY2022

ChangeDomestic

199,112114,368(84,743)(89,137)

4,394

4,457

1,582

(2,875)Business Overseas Subsidiaries, etc

106,264

110,982

4,718

0

4,718

12,44014,826

2,386

Total

305,376

225,351(80,024)(89,137)

9,113

16,89816,409(489)

Mineral Resources Business

36,882

37,214332(1,240)

1,572

2,611

2,633

21

Environmental Business

37,723

33,837(3,885)(6,536)

2,651

2,826

3,066

240

Construction Materials Business

34,51829,261(5,257)(5,031)

(226)

867

1,146

279

Other

40,66242,001

1,338(2,743)

4,081

2,917

2,462

(455)

Total

455,163367,665(87,498)(104,687)

17,18926,122

25,718(404)

Elimination(34,536)(27,866)

6,669

9,468

(2,799)49490

Consolidated Total

420,627

339,798(80,828)(95,219)

14,391

26,12625,812(314)※ Taiheiyo Cement reassesses cost allocation method of cement segment's "domestic" and "overseas subsidiaries, etc" from the fiscal year 2021.

Page 7

4. Financial Results for the First Half of Fiscal 2022
Sales Volume of Cement(Thousand tons)
First Half First Half
Changeof FY2021 of FY2022(2) Consolidated Segment Information
Cement Business
Net Sales

Domestic

Domestic

6,792

6,605

(187)

Export

1,803

1,937

134

(Millions of yen)First Half First Halfof FY2021 of FY2022
199,112114,368

ChangeMain Factors of Changes in Net Sales and Operating Income(84,743) Decrease in sales volume of domestic cement and soil stabilizers -0.9 billion yen"4,394" Increase in export cement volume +0.5 billion yen
Price difference in domestic cement and soil stabilizers +0.0 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.
+3.5 billion yen

Operating
IncomeOverseas
Subsidiaries,etc.
Total

106,264

110,982

305,376

225,351

Domestic

4,457

1,582

4,718 U.S.A +US$40 million
China -US$8 million, Asia and other +US$7 million
Effect of foreign exchange, etc. +0.6 billion yen(80,024)"9,113"(2,875) Decrease in sales volume of domestic cement and soil stabilizers -0.8 billion yen
Increase in export cement volume +0.3 billion yen

Overseas
Subsidiaries,etc.
Total

12,44014,826

Price difference in domestic cement and soil stabilizers +0.0 billion yen
Decrease in net export cement revenue -0.2 billion yen
Increase in variable cost -2.3 billion yen
Increase in fixed cost -0.2 billion yen
Increase in income from subsidiaries producing or selling cement or ready-mixed concrete, etc.
+0.3 billion yen
2,386 U.S.A +US$26 million
China -US$4 million, Asia and other -US$0 million
Effect of foreign exchange, etc. -0.0 billion yen16,898

16,409(489)※ Taiheiyo Cement reassesses cost allocation method of cement segment's "domestic" and "overseas subsidiaries, etc" from the fiscal year 2021.
※ The number inside " " shows net change excluding the impact of application of “Accounting Standard for Revenue Recognition”, etc.

Page 8

4. Financial Results for the First Half of Fiscal 2022
(2) Consolidated Segment Information
Reportable Segments (Excluding Cement Business) and Other
MineralResources
BusinessNet SalesFirst Half First Halfof FY2021 of FY2022
36,882
37,214

Operating
Income

2,611

2,633

Environmental Net Sales
Business

37,723

33,837

Operating
Income

2,826

3,066

Net Sales

34,51829,261

Construction
Materials
Business

OtherChange(Millions of yen)

Main Factors of Changes in Net Sales and Operating Income

332"1,572"
21

Increase in sales volume of limestone for the iron and steel industry
Increase acceptance of construction generated soil

(3,885) Processing operations in coal ash, sales volume of fuel and gypsum"2,651" remained strong240 Processing operations in coal ash remained strong(5,257) Decrease in sales of materials for shield tunnel construction and ALC (Autoclaved Lightweight"(226)" aerated Concreate)
Ground improvement projects remained strong

279 Ground improvement projects remained strong

Operating
Income867

1,146

Net Sales

40,66242,001

1,338"4,081"

Operating
Income2,917

2,462(455)

Decrease in sales of materials for shield tunnel construction and ALC (Autoclaved Lightweightaerated Concreate)※ The number inside " " shows net change excluding the impact of application of “Accounting Standard for Revenue Recognition”, etc.

Page 9

4. Financial Results for the First Half of Fiscal 2022
(3) Consolidated Balance Sheets
Change142,515

143,017

501

Inventories

75,374

83,893

8,519

Other

36,36937,588

1,219

Total current assets

327,333

337,762

10,429Total property, plant andequipment
Total intangible assets

540,342544,104

3,762

28,192

27,969(223)

Total investments and otherassets

148,358

176,779

28,420Total non-current assets
Total assets

Foreign exchange rate (yen/US$)

31,960

As of Mar As of Sep
31, 2021
30, 2021
304,831314,788

Change9,956

Non-current liabilities

232,574

241,172

8,598

Total liabilities

537,405

555,960

18,555

Share capital

86,174

86,174-

Capital surplus

60,292

46,546(13,745)

Retained earnings

365,593379,376

13,782

Treasury shares(26,113)(15,003)

11,110Total shareholders'equityAccumulated othercomprehensive income
Non-controlling interests

485,946

497,093

11,146(15,025)(3,184)

11,84135,89936,745845

Total net assets

506,821

530,655

23,834

1,044,227

1,086,616

42,389As of Mar. 31,2021
Interest-bearing liabilities(millions of yen)
248,102

As of Sep. 30,
2021
269,457

Shareholders' equity

Trade accounts receivableand contract assets

Current liabilities
Liabilities

188

Net assets

Non-current assets

Current assets

Cash and deposits

As of Mar As of Sep
31, 2021
30, 2021
73,07473,263(Millions of yen)

716,893

748,853

1,044,227

1,086,616

42,389 Total liabilities and net assets

As of Dec. 31,
2020

As of Jun. 30,
2021

Change103.50110.58

7.08

Change21,355

Page 10

4. Financial Results for the First Half of Fiscal 2022(4) Consolidated Statements of Cash Flows(Millions of yen)First Half ofFY2021

First Half ofFY2022

ChangeCash flows from operating activities

48,75343,093(5,660)Cash flows from investing activities(29,740)(53,144)(23,403)

Cash flows from financing activities

9,372

6,590

(2,781)

Effect of exchange rate change on cash and cash equivalents

(367)

1,876

2,243

Net increase (decrease) in cash and cash equivalents

28,017(1,584)(29,602)000

Cash and cash equivalents at beginning of period

45,74863,81918,071

Cash and cash equivalents at end of period

73,76562,235(11,530)

Other＜ Indexes ＞

As of Mar 31, As of Sep 30,2021
2021

ChangeCurrent ratio (%)

107.4

107.3

(0.1)

Net DE ratio (times)

0.37

0.40

0.03
Page 11

5. Forecast for the Fiscal 2022
(1) Consolidated Statements of Income(100 million yen)
FY2021(actual)FY2022(forecast)Components of change
ChangeRevenue standard
impactNet Sales

8,639

7,165

(1,474)

Operating income

636

600

(36)

Ordinary income

657

610

(47)

Extraordinary income and losses

(6)

(60)

(54)

Profit before income taxes651550(101)Profit attributable to owners of parent

468

380(88)Domestic demand (10 thousand ton)

3,867

3,860(7)Foreign exchange rate (yen/US$)

106.76109.002.24

Net change(1,886)412＜ Preconditions＞

Page 12

5. Forecast for the Fiscal 2022
(2) Consolidated Segment Information
Net Sales and Operating Income by Reportable Segments(100 million yen)

Net Sales
FY2021(actual)CementFY2022(forecast)

Operating Income

Components of change
Revenuestandard
impactChangeNet change

FY2021(actual)FY2022(forecast)

ChangeDomestic

4,062

2,460(1,602)(1,756)154

162

85(77)

Business Overseas Subsidiaries, etc

2,148

2,260

112-112

251

290

39

Total

6,210

4,720(1,490)(1,756)266

413

375(38)Mineral Resources Business

757

760

3(23)

2660

61

1

Environmental Business

780

715(65)

(141)

7664

65

1

Construction Materials Business

730

665

(65)

(101)

3635

32(3)

Other

914

885(29)

(53)

24

61

67

6

Total

9,392

7,745

(1,647)(2,074)

427

635

600

(35)

Elimination

(753)

(580)

173

188(15)000

Consolidated Total

8,639

7,165

(1,474)(1,886)412636600(36)※ Taiheiyo Cement reassesses cost allocation method of cement segment's "domestic" and "overseas subsidiaries, etc" from the fiscal year 2021.

Page 13

5. Forecast for the Fiscal 2022
Sales Volume of Cement(2) Consolidated Segment Information

FY 2021(actual)Cement Business(Thousand tons)
FY 2022
Change(forecast)

Domestic

13,782

13,772(10)

Export

3,778

4,344

566

(100 million yen)

Net Sales

Domestic

FY 2021
FY 2022(actual)(forecast)
4,062
2,460

ChangeMain Factors of Changes in Net Sales and Operating Income(1,602) Increase in sales volume of domestic cement and soil stabilizers +1.1 billion yen"154" Increase in export cement volume +2.3 billion yen
Price difference in domestic cement and soil stabilizers +4.1 billion yen
Price difference in export cement +3.5 billion yen
Increase in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc.
+4.4 billion yen

Operating
IncomeOverseas
Subsidiaries,etc.
Total

2,148

2,260

6,210

4,720

Domestic

162

85

112 U.S.A +US$42 million
China -US$0 million, Asia and other +US$9 million
Effect of foreign exchange, etc. +5.5 billion yen(1,490)"266"(77) Increase in sales volume of domestic cement and soil stabilizers +0.2 billion yen
Increase in export cement volume +1.2 billion yen
Price difference in domestic cement and soil stabilizers +3.7 billion yen
Increase in net export cement revenue +0.0 billion yen
Increase in variable cost -11.5 billion yen

Overseas
Subsidiaries,etc.
Total251290

Increase in fixed cost -0.6 billion yen
Decrease in sales from subsidiaries producing or selling cement or ready-mixed concrete, etc. 0.7 billion yen
39 U.S.A +US$29 million
China -US$2 million, Asia and other +US$1 million
Effect of foreign exchange, etc. +0.6 billion yen413375(38)※ Taiheiyo Cement reassesses cost allocation method of cement segment's "domestic" and "overseas subsidiaries, etc" from the fiscal year 2021.
※ The number inside " " shows net change excluding the impact of application of “Accounting Standard for Revenue Recognition”, etc.

Page 14

6. Reference Information

Page 15

6. Reference Information

Page 16

6. Reference Information(6) Overview of Business in the U.S.A. (million US$)

222
193

129

12774397

FY 2018

Operating income

1,474

1,431

1,341

1,328

1,224

Net sales

FY 2019

FY 2020

FY 2021

FY 2022(forecast)

119First Half of FY 2022

Page 17

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 anduncertainties.
As such, Taiheiyo Cement does not offer any promise or guarantee that forecasts included in thisdocument will be realized in the future. Actual results may differ significantly due to a variety offactors.

Page 18