Summary of Consolidated Financial Results of Taiheiyo Cement Corporation 

for the First Half of Fiscal 2005 Ended September 30,2004 

November 16,2004 

Company: Taiheiyo Cement Corporation Fiscal 2004 1H: April 1,2003-September 30,2003 

Stock code: 5233 Fiscal 2004: April 1,2003-March 31,2004 

URL: http://www.taiheiyo-cement.co.jp/ Fiscal 2005 1H: April 1,2004-September 30,2004 

Fiscal 2005: April 1,2004-March 3 1,2005 

The accompanying consolidated financial results are not intended to present the financial results in accordance 

with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. 

1. FY3105 consolidated interim results (Avril 1.2004 - Sevtember 30.2004) 

I / Millions of Yen 1 Millions of Yen % I Millions ofYen % I 

1H FY3105 

1H FY3104 

FY 3/04 

(2) Consolidated financial position 

EPS 

Yen 

6.72 

6.92 

17.71 

Net income 

Millions of Yen % 

6,255 -2.4 

6,412 - 16,518 

(3) Consolidated cash flows 

This forecast is based on the information available at the date of publication of this material and assumptions at the same date 

with 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. 

Diluted EPS 

Yen 

6.49 

- 

17.46 

Equity per share 

Yen 

242.00 

237.19 

238.73 

2. FY3105 consolidated earnings forecast (April 1,2004 -March 3 1,2005) 

Page 1 of 8 

Equity ratio 

Yo 

17.6 

16.0 

17.0 

1H FY3105 

1H FY3104 

FY3104 

Cash and cash 

equivalents at term-end 

Millions of Yen 

82,064 

72,913 

80,534 

1H FY3105 

1H FY3104 

FY3/04 

Sales Ordinaty income I Net income 

Total assets 

Millions of Yen 

1,283,054 

1,373,412 

1,303,997 

Cash flows from 

operating activities 

Millions of Yen 

17,440 

23,228 

55,675 

Shareholders' equity 

Millions of Yen 

225,209 

21 9,790 

222,178 

Cash flows from 

investing activities 

Millions of Yen 

1,070 

3,618 

31,585 

Millions of Yen 

16,000 

Cash flows from 

financing activities 

Millions of Yen 

-17,116 

45,143 

-96,003 

Reference: FY3105 EPS forecast: 4t17.19 

Millions of Yen 

FY3105 36,000 

Millions of Yen 

865,000 
Consolidated Balance Sheets 

Item 

Assets 

Current assets 

Cash and time deposits 

Notes and accounts receivable 

Inventories 

Deferred income taxes 

Short-term loans 

Other current assets 

Allowance for doubtful accounts 

Fixed assets 

A. Tangible fixed assets 

Buildings and structures 

Machinery, equipment 

Land 

Construction 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 

Deferred income taxes 

Other inveshnents and assets 

Allowance for doubtful accounts 

Total assets 

1H FY3105 

(As of 9130104) 

360,978 

87,847 

171,848 

74,572 

3,975 

13,375 

11,851 

-2,491 

922,075 

645,941 

206,137 

169,398 

218,063 

26,728 

25,614 

50,254 

14,425 

7,498 

28,329 

225,880 

152,923 

9,129 

15,512 

62,690 

-14,374 

1,283,054 

FY3104 

(As of 313 1/04) 

364,067 

85,851 

188,360 

66,218 

2,903 

15,192 

8,185 

-2,643 

939,929 

654,826 

210,830 

175,314 

222,279 

20,814 

25,586 

50,964 

13,843 

8,067 

29,053 

234,138 

159,375 

9,581 

15,732 

65,304 

-15,855 

1,303,997 

(Unit 

Change 

-3,089 

1,996 

-16,511 

8,354 

1,071 

-1,816 

3,665 

151 

-17,854 

-8,884 

-4,692 

-5,916 

-4,216 

5,913 

28 

-710 

582 

-569 

-723 

-8,258 

-6,452 

-452 

-220 

-2,614 

1,481 

-20,943 

dillions of Yen] 

1H FY3104 

(As of 9l30lO3) 

Page 2 of 8 
Item 

Liabilities 

Current liabilities 

Notes and accounts payable 

Short-term borrowings 

Bonds (due within one year) 

Income taxes payable 

Deferred income taxes 

Bonus reserve 

Other reserves 

Other current liabilities 

Fixed liabilities 

Bonds 

Convertible bonds 

Long-term borrowings 

Deferred income taxes 

Deferred income taxes fiom revaluation 

excess 

Accrued for retirement benefits 

Accrued for retirement benefits to 

directors and corporate auditors 

Special repair reserve 

Other fixed liabilities 

rota1 liabilities 

vlinority interests 

ihareholders' equity 

Capital stock 

Additional paid in capital 

Retained earnings 

Revaluation excess 

Unrealized gain on other securities 

Foreign currency translation adjustments 

Treasury stock 

btal shareholders' equity 

btal liabilities, minority interests and 

shareholders' equity 

1H FY3105 

(As of 9130104) 

540,511 

102,593 

333,602 

31,105 

5,431 

56 

5,999 

567 

61,155 

486,40C 

73,490 

34,000 

249,293 

26,332 

5,948 

35,032 

2,081 

175 

60,045 

1,026,912 

30,932 

69,499 

58,607 

92,702 

5,121 

13,962 

-11,917 

-2,766 

225.209 

FY3104 

(As of 3131104) 

566,375 

116,286 

350,727 

30,570 

7,207 

161 

5,483 

614 

55,323 

486,335 

83,310 

12,000 

261,913 

25,211 

5,948 

35,689 

3,070 

104 

59,086 

1,052,711 

29,107 

69,499 

58,489 

88,769 

5,373 

16,403 

-13,312 

-3,043 

222.178 

Change 

-25,863 

-13,692 

-17,124 

535 

-1,776 

-104 

515 

-46 

5,832 

65 

-9,820 

22,000 

-12,619 

1,121 

. # 

-657 

-988 

7 1 

958 

-25,798 

1,824 

. . 118 

3,933 

-251 

-2,440 

1,394 

276 

3,030 

Page 3 of 8 
Extraordinary gains and losses Non-operating income and Operating 

lses incomefloss 

Income 

exp 

Losses Gains Expenses 

P - 0 &,&g-NbG Li 0-4 w WNa 4 mm- m 5 i? 
Consolidated Statements of Retained Earnings 

Item I 1HFY3105 

Additional paid in capital 

Additional paid in capital at beginning of 

I1 Increase in additional paid in capital I Gain on disposal of treasury stock 1 118 

IV Additional paid in capital at end of term I 

Retained earnings 

(Unit 

1H FY3104 I YoY change 

I Retained eamings at beginning of term 

I1 Increase in retained eamings 

Net income 

Increase resulting from merger of 

consolidated subsidiaries 

Reversal of land revaluation difference 

I11 Decrease in retained earnings 

Dividends 

Bonuses to directors and corporate auditors 

. .Retains eamings at end of term 

Aillions of Yen) 

FY3104 

6,255 

41 

1 

2,314 

50 

Page 5 of 8 
Consolidated Statements of Cash Flows 

Net income before income taxes 

Depreciation and amortization 

Amortization of diffarence between equity in net assets of 

consolidatedsubsidiaries and affiliates 

Equity in gains of unconsolidated subsidiaries and 

affiliates 

Equity in losses of unconsolidated subsidiaries and 

affiliates 

Stock valuation loss 

Increaseldecrease in accrued retirement benefits 

Increase/decrease in accrued retirement benefits to 

directors and corporate auditors 

Increaseidecrease in bonus reserve 

Increaseidecrease in allowance for doubtful accounts 

Increase in other reserves 

Interest and dividends received 

Interest expeses 

Gain on sale of investment in securities 

Loss on sale of stock of affiliates 

Loss on sale of investment securities 

Gain on dilution of ownership in affiliated companies 

Liquidation of unconsolidated subsidiaries and affiliates 

Gain on disposal of fixed assets 

Loss on disposal of fixed assets 

Increaseldecrease in notes and accounts receivable 

Increaseldecrease in inventories 

Decrease in notes and accounts payable 

Payment of bonuses to directors and corporate auditors 

Other 

Subtotal 

Interest and dividends received 

Interest paid 

Income taxes paid 

Net cash provided by operating activities 

Unit: Millions of Yen 

FY3104 

4/1/04 - 

9130104 9/30/03 313 1/04 

Page 6 of 8 
- 

Payments for deposit idproceeds 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 

Proceeds from sale of subsidiaries stock resulting in 

changes in the scope of consolidation 

Long-term loans made 

Collections of long-term loans receivable 

Other 

Net cash provided bylused in investing activities 

I 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 oFtreasnry stocks 

Cash dividend payments by parent company 

Cash dividend payments to minority shareholders 

Term 

Item -- 

I1 Cash flows from investine activities 

Effect of exchange rate changes on cash and cash equivalents 

Increaseldecrease in cash and cash equivalents 

Cash and cash equivalents at beginning of term 

Cash and cash equivalents at beginning of term resulting from 

change in scope of consolidation 

VIIl Increase in cash and cash equivalents at beginning of term 

resulting from merger of consolidated subsidiaries 

IX Cash and cash equivalents at end of term 

1H FY3105 

411104 - 

9130104 

YoY 

change 

1H FY3104 

411103 - 

9130103 

Page 7 of 8 
Segment Information 

Segment information 

(Unit: Millions of Yen) 

1 1 1 H FY3i05 (411 i04 - 9130104) I 

income 

Sales 

(I) Sales to 

outside 

customers 

(2) Intersegment 

sales and 

transfers 

income 

Total 

- 

413,09( 

38,592 

- 

451,68: 

434,067 

liminations 

total corporate 

Overseas sales 

Page 8 of 8 

(Unit: Millions of Yen) 

I 

I1 

111 

1H FY3i05 (4ili04 - 9/30/04) 

Overseas sales 

Consolidated sales 

Ratio of overseas sales to consolidated sales 

North America 

37,371 - 

9.0% 

Total 

83,258 

413,090 

20.2% 

Asia 

38,847 - 

9.4% 

Other 

7,039 - 

1.7% 

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS OF TAlHElYO CEMENT CORPORATION 

FOR THE FISCAL 2004 ENDED MARCH 31,2004 

May 18,2004 

Company: Taiheiyo Cement Corporation Fiscal 2003 : April 1,2002 - March 31,2003 

Stock code: 5233 Fiscal 2004 : April 1, 2003 - March 31,2004 

URL: http:/lwww.taiheiyo-cement.co.jp/ Fiscal 2005 1 H: April 1,2004 - September 30,2004 

Fiscal 2005 : April 1,2004 - March 31,2005 

The accompanying consolidated financial results are not intended to present the financial results in accordance 

with accounting principles and practices generally in countries and jurisdictions other than Japan. 

1 .FY3/04 consolidated results ( A~ril 1, 2003 - March 31. 2004 ) 

the nearest one million yen. 

Millions of Yen % Millions of Yen % Millions of Yen % 

FY3104 

FY3103 

(3)Consolidated cash flows 

12)Consolidated financial position 

879,484 -5.2 

927,956 -5.3 

Net income 

Millions of Yen % 

Total assets 

Millions of Yen 

Cash flows from 

operating activities 

Millions of Yen 

44,847 -2.6 

46,025 25.4 

Shareholders' equity 

Millions of Yen 

Equity ratio 

% 

2.FY3105 consolidated earnings forecast ( April 1, 2004 - March 31, 2005 ) 

35,142 50.3 

23,381 793.0 

EPS 1 Diluted EPS 

Equity per share 

Yen 

Cash flows from 

investing activities 

Millions of Yen 

Net Sales 

Millions of Yen 

1 H FY3105 

FY3/05 

Yen Yen 

Cash flows from 

financing activities 

Millions of Yen 

Ordinary income 

Millions of Yen 

Reference: FY3105 EPS forecast 17.19Yen 

415,000 

865,000 

Cash and cash equivalents at 

end of term 

Millions of Yen 

Net income 

Millions of Yen 

10,000 

31,000 

5,000 

16,000 
3,Consolidated Balance Sheets 

issets 

Current assets 

Cash and deposits 

Notes and accounts receivable 

Inventories 

deffered tax assets 

Short-term loans receivable 

Other current assets 

Allowance for doubtful accounts 

Fixed assets 

A. Tangible fixed assets 

Buildings and structures 

Machinery, equipment and vehicles 

Land 

Construction 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 receivable 

Deffered tax assets 

Other investments and assets 

Allowance for doutful accounts 

'otal Assets 

.iabilities 

Current liabilities 

Notes and accounts payable 

Short-term borrowings 

Commercial paper 

Bonds (due within one year) 

Income tax payable 

Deffered tax liabilities 

Bonus reserve 

Other reserves 

Other current liabilities 

Fixed liabilities 

Bonds 

Convertible bonds 

Long-term borrowings 

Deffered tax liabilities 

Deffered tax liabilities from land revaluation 

Reserve for retirement benefits 

Reserve for retirement benefits for directors and 

corporate auditors 

Special repair reserve 

Other fixed liabilities 

'otal liabilities 

linority interests 

ihareholders' equity 

Capital stock 

Additional paid in capital 

Retained earnings 

Gain on land revaluation 

Gain on valuation of other securities 

Foreign currency translation adjustment 

Treasury stock 

'otal shareholders' equity 

otal liabilities, minority interests and shareholders' 

FY3104 

(As of 3/31/04) 

(Ur 

FY3103 

(As of 3/31/03) 

Millions of Yen 

Change 
4,Consolidated Statements of Income 

(Uni 

FY3104 1 FY3103 

dillions of Yen 

Change 

:ost of sales 

;elling, general and administrative expenses 

Iperating income 

lnterest and dividends received 

Equity method investment income 

Other non-operating income 

Total 

1 Interest paid V) 

% Equity method investment loss c ' Other non-operating expenses 

3 

Total 

lrdinary income 

- 

let income before income taxes 

)come taxes 

l~ain on disposal of fixed assets 

l~ain on sale of investment securities 

Gain on return of pension fund assets 

Gain on change in equity in affiliates I 

lother extraordinary gains 

Total 

Loss on disposal of fixed assets 

Total 

V) 

$ 

)come tax adjustments 

Provision for allowance for doubtful accounts 

Loss on liquidation of affiliates 

Loss on sale of stock of affiliates 

Stock valuation loss 

Early retirement costs 

Loss on closing cement plant 

Business discontinuation costs 

Other extraordinary losses 

linority interest income 

let income 
5,Consolidated Statements of Retained Earnings 

(Unit: Millions of Yen, 

Item 

Additional paid in capital 

I Additional paid capital at beginning of term 

U Increase in additional paid in capital 

Gain on disposal of treasury stock 

III Additional paid in capital at end of term 

Retained earnings 

I Retained earnings at beginning of term 

U Increase in retained earnings 

Net income 

Increase resulting from increase in equity method affiliates 

Reversal of land revaluation difference 

Increase resulting from merger of consolidated subsidiaries 

IJI Decrease in retained earnings 

Dividends 

Bonuses to directors and corporate auditors 

IV Retains earnings at end of term 

FY3104 

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

FY3103 

(4/1/02-3/31/03) Change 

260 

16,518 

1 

2,298 

63 

455 

6,262 

513 

129 

98 

2,755 

76 

-1 95 

10,256 

-513 

-127 

-98 

-457 

-12 

58,229 

260 

58,489 

74,610 

16,520 

2,361 

88,769 

57,773 

455 

58,229 

70,439 

7,002 

2,831 

74,610 

455 

-195 

260 

4,170 

9,517 

-470 

14,158 
6,Consolidated Statements of Cash Flows 

Ter~ 

Item 

I Cash flows from operating activities 

Net income before income taxes 

Depreciation 

Amortisation of consolidation adjustments 

Equity method investment gain 

Equity method investment loss 

Stock valuation loss 

Increaseldecrease in reserve for retirement benefits 

Increaseldecrease in reserve for retirement benefits for director I and coroorate auoilors 

Decrease in bonus rescrve 

Decrease in allowance for doubtful accounts 

Increase in other reserves 

lnterest and dividend income 

lnterest paid 

Gain on sale of investment securities 

Loss on sale of stock of affiliates 

Loss on liquidation of affiliates 

Gain on disposal of fixed assets 

Loss on disposal of fixed assets 

Increaseldecrease in accounts recievable 

Decrease in inventories 

Decrease in accounts payable 

Payment of bonuses to directors and corporate auditors 

Other 

Sub total 

lnterest and dividend received 

lnterest paid 

Income taxes paid 

Net cash provided by operating activities 

I Cash flows from investing activities 

Proceeds from withdrawal from time deposits 

Payments for purchase of fixed assets 

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 

Proceedslpayments from sale of stock of subsidiaries resulting 

from change in scope of consolidation 

Payments for loans granted 

Proceeds from collection of loans receivable 

Other 

Net cash provided bylused in investing activities 

II Cash flows from financing activities 

Net decrease in short-term borrowings 

Net decrease in commercial paper 

Proceeds from long-term borrowings 

Repayments of long-term borrowings 

Proceeds from issuance of bonds 

Payments for redemption of bonds 

Proceeds from issuance of stocks to minority shareholders 

Proceeds from sale of treasury stock 

Payments for purchase of treasury stock 

Dividend payments by parent company 

Dividend payments to minority shareholders 

Net cash used in financing activities 

N Effect of exchange rate changes on cash and cash equivalents 

I V lncreaseldecrease in cash and cash equivalents 

VI Cash and cash equivalents at beginnig of term 

W Cash and cash equivalents at beginning of term resulting from 

change in scope of consolidation 

WI Cash and cash equivalents at beginning of term resulting from 

marger of consolidated subsidiaries 

M Cash and cash equivalents at end of term 

(Unit: Millions of Yen) 

FY3104 

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

I I 

FY3103 

(4/1/02-3/31/03) Change 
7.Segment information 

ss segment information 

r\, ,A--:, " n"-..L ". (Unit: Millions of Yen\ 

,81118111 Fiedl IhLdlt: I corporate I total I 

r, '""Lt pp,,, I, LYYO - IYld,G,l a I, L""',, 

1 I materials I I I I assets I 1 Sde+ and nner2tinn income I 

Minerals 

Note: 1. Business segment classifications are determined based on sales totals 

2. Main products in each segment: 

Construction 

- - -. -- -. .- - - . -. . . . = (1) Sales to outside customers 

(2) Intersegment sales and transfers 

Total 

Operating expenses 

Operating income 

II Assets, depresiation, capital expenditure 

Assets 

De~resiation 

Cement Various types of cement 

Minerals and aggregates Aggregates and lime products 

Construction and construction materials Ready mixed concrete, secondary concrete products, and autoclaved 

lightweight concrete 

Real estate Land and building leasing 

Other Zero emissions, ceramics and electoronics, engineering, data processing 

finance, logistics, chemical products, sports, and other 

C----' 

Eliminations 

..A 

249,439 

37,443 

286,882 

260,542 

26,340 

523,958 

22,107 

(2) Geographic segments 

(Unit: Millions of Yen1 

FY 2004 (April 1,2003 - March 31, 2004) 

and 

75,517 

23.395 

98,913 

96.321 

2,591 

146,828 

5,808 

Domestic 

(in Japan) 

I I I I I I assets l 

Note: 1. Regional classifications are determined based on geographical proximity 

2. Countries in each regional classification: 

North America United states of America 

Asia China, Malaysia, Vietnam. Philippines 

Other Hungary, Papua New Guinea 

I Sales and operating income 

(1) Sales to outside customers 

(2) Intersegment sales and transfers 

Total 

Operating expenses 

Operating income 

II Assets 

--., --.-.. 

348,679 

9,080 

357,760 

351,449 

631 1 

253.399 

5.648 

North 

America 

713.616 

1,790 

715,406 

682,714 

32.692 

and 

9,377 

4,364 

13,741 

10,425 

3,316 

111,358 

3,268 

Other 

Consolidated 

71,568 

743 

72,311 

66,237 

s

6,074 

196,471 

38,129 

234.600 

226,216 

8,383 

278,776 

5,401 

Total 

89,532 

5,226 

94,759 

87,689 

7,070 

879,484 

112,413 

991,898 

944,955 

46,942 

1,314,322 

42,233 

Eliminations 

and 

corporate 

Consolidated 

total 

4,767 

134 

4.902 

4.674 

227 

( 

(112,413) 

(112,413) 

(110,317) 

(2,095) 

(10,324) 

2,994 

879,484 

879,484 

834,637 

44,847 

1,303,997 

45,228 

879,484 

7,895 

887,379 

841.315 

46.064 

i -1 

(7,895) 

(7,895) 

(6,678) 

(1,217) 

879,484 

879.484 

834,637 

44,847 
(3)Overseas sales 

I Fiscal 2003 (April 1,2002 -March 31, 2003 ) 1 

(Unit: Millions of Yen) 

1 Overseas3ales 

U Consolidated sales 

Dl Ratio of overseas sales to consolidated sales 

Thailand, Indonesia and others 

Other Australia. Kuwait, Kenia, Ivory Coast, Spain, Papua New Guinea, France. Denmark and 

others 

3. Overseas sales are comprised of the total exports of Taiheiyo Cement and domestic consolidated subsidiaries as 

weil as sales at consolidated subsidiaries located outside Japan (excluding sales among consolidated companies) 

I Overseas sales 

il Consolidated sales 

IU Ratio of overseas sales to consolidated sales 

Fiscal 2004 (April 1,2003 -March 31,2004 ) 

America 

76,149 

8.7% 

Note: 1. Regional classifications are determined based on geographical proximity 

2. Countries in each regional classification: 

North America United states of America Canada 

Asia China, Taiwan, singapore. Malaysia, Philippines, Vietnam, Sri Lanka, Bangladesh 

North 

America 

82,009 

8.8% 

Asia 

97.002 

11.0% 

71,207 

7.7% 

Other 

11,726 - 1.3% 

Other 

9,370 - 1.0% 

Total 

184,879 

879.484 

21.0% 

Total 

162,587 

927,956 

17.5% 

COMP navi Page 1 of 1 

OUTLINE 

MISSION 

BUISINESS PRINCIPLES 

HISTORY 

ORGANIZATION CHART 

SITE MAP 

HOME 
Outline Page 1 of 1 

Head Office 

Capitalization 

Non-consolidated 

net sales: 

Number of 

employees: 

Consolidated net 

sales: 

St.Lukels Tower, 8-1, Akashi-cho, Ghuo-ku, 

Tokyo 104-851 8, Japan 

Y69.5billion 

Y299.1 billion (Year Ended March 31, 2004) 

2,187 (As of March, 2004) 

Y879.4billion (Year Ended March 31, 2004) 

Copyright 1998 TAIHEIYO CEMENT CORPORATION 
Mission of Taiheiyo Cement Group 

Our mission is to contribute to social infrastructure development by providing 

solutions that are environmentally efficient, enhance our competitive position 

and bring value to our stakeholders. 

Copyr~ght 2003 TAIHEIYO CEMENT CORPORATION 

Page 1 of 1 
Buisiness Principles Page 1 of 1 

Taiheiyo Cement has nine guiding Business Principles which apply to all our 

business affairs and which provide guideline to us realizing the Mission of the 

Taiheiyo Cement Group. The Taiheiyo Cement Business Principles govern the 

business decisions taken throughout the company and describe the individual 

behavior expected of every employee in conducting Taiheiyo Cement's 

business. 

.We are committed to creating sustainable value for our shareholders by 

generating synergies among the Taiheiyo Cement Group of companies. 

-We aim to manage the environmental impact of our operations while supporting 

the development of a recycling-based society. 

.We will act in an ethical manner and abide by the laws and regulations of those 

countries in which we operate. 

.We will openly communicate with our stakeholders and proactively report on 

our business activities in a transparent manner. 

.We are committed to the on-going development and application of innovative 

technologies in order to provide products and services that benefit our 

customers and society. 

.We are committed to maintaining an international outlook and conducting our 

business in accordance with global standards. 

.We will strive to anticipate the changing business environment to assess new 

opportunities for growth. 

.We are committed to achieving our full potential through training and selfdevelopment. 

-We are devoted to providing a safe and healthy working environment where our 

employees are valued and their human rights of all individuals involved in our 

business. 

Copyright 2003 TAlHElYO CEMENT CORPORATION 
History Page 1 of 1 

1881: Established a cement production company in Yamaguchi ~refecture(later 

Onoda Cement Co.,Ltd.) 

1883: Rented a nationally owend cement plant from Fukagawa Branch of Ministry of 

Industry and started cement production (later Asano Cement Co.,Ltd.) 

1923: Established Chichibu Cement Co.,Ltd. 

1947: Changed the name from Asano Cement Co.,Ltd. to Nihon Cement CO.,Ltd. 

1994: Onoda Cement Co.,Ltd. and Chichibu Cement Co.,Ltd merged and Chichibu 

Onoda Cement Corporation established. 

1998: Chichibu Onoda Cement Corporation and Nihon Cement CO.,Ltd merged and 

TAIHElYO CEMENT CORPORATION established. 

Copyright 2001 TAIHEIYO CEMENT CORPORATION 
Organizationchart Page 1 of 1 

Copyright 2001 TAlHEIYO CEMENT CORPORATION 

webmaster@taiheiyo-cement .. . . - co& 

Page 1 of 1 

BUSINESS LIS 1' 

CEMENT BUSINESS 

INDU STIUAL MA 1'ERlAL 

BUSlNbSS 

ZERO EMISSION PROMOTION BUSINESS 

INTERNATlONAL 

BUSlNbSS 

REAL ESTATE RUSINFSS 

POWER GENERATION 

B-USlNbSS 

.. 

SITE . . .. MAP . .. ... ... .... . 

HOME 
Business Introduction 

BUSINESS LIST 

Page 1 of 2 

Spreading our wings to create new possibilities. Our company aims to 

contribute to a society that truly satisfies everyone in harmony with the 

global environment. 

TAIHEIYO CEMENT CORPORATION was born as one of the leading 

companies in the cement industry. We consider it our mission to 

contribute to social and economic development and the improvement of 

infrastructure by continuously providing a stable supply of high quality 

cement. At the same time we will boldly challenge new business areas in 

order to achieve dynamic business development. We consider it our 

obligation to carry out our responsibilities within the cement industry to 

realize a 21 st Century Resource Circulation Society, a society that fully 

utilizes natural resources through recycling. We would like to devote the 

techniques and knowledge that we have gained from many years 

experience to create a new world where industrial development exists in 

harmony with the global environment. 

Cement Business 

Cement is our core business and we have established an efficient system of 

production, delivery and sales throughout the country. We maintain a stable supply 

of quality cement to suit the requirements of a variety of applications. 

Industrial Materials Business 

Handling limestone, aggregates for concrete, facing stone, we aim to be a 

comprehensive supplier of mineral products. 

Zero Emission Promotion Business 

To achieve the Resource Circulation Society we manage and recycle various 

wastes including municipal waste incineration ash, sludge, waste plastics, fly ash, 

etc. 

lnternationai Business 

While developing global activities centered around the Pacific Region including the 

United States, China and Southeast Asia, we are promoting various businesses 

including the establishment of joint ventures, plant construction, etc. 

. Real . .. ... ... .... Estate . Business 

We promote the utilization of idle land owned by our company throughout Japan by 

re-development. 

Power Generation Business 

Utilizing in-house electricity generation technology, we are promoting and 

expanding our new business area of electricity supply. 

Ceramics and Electronics Business 

Our fine ceramics business focuses on research and development of innovative 

materials. We also promote an electronics business which meets the demands of 

the information and communications industry. 
Business Introduction Page 1 of 2 

CEMENT BUSINESS 

Cement is a fundamental material indispensable to construction and the 

development of the modern world. From our production bases and through 

an efficient supply organization via service stations, Taiheiyo delivers a 

stable supply of high quality cement. 

A cement business promoting social infrastructure development 

by maintaining a stable product supply. 

The cement industry supports the development of tomorrow's so ciety 

Japan has experienced progressive development of itls society and infrastructure 

through maintaining and expanding distribution arteries such as highways, railways 

airports and harbors, etc., and the creation of functional high rise commercial 

buildings and comfortable, high standard residential accommodation. The cement 

industry has played a vital role in this development and will continue to do so in the 

future while meeting the requirements of the modern world in terms of intelligent 

technologies and environmental preservation. 

Producing high quality cement from the most modern, 

productive and efficient plants 

Using centralized control systems, the latest computer technology and NSP kilns, 

our cement plants produce high quality cement while realizing high productivity and 

the highest levels of energy efficiency in the world. Moreover, by introducing our 

own power generation facilities and by actively utilizing recycled resources we 

promote cost reduction and energy conservation. In particular, we are positively 

addressing quality control and environmental preservation by implementing the 

quality system certification IS0 9000 at all our plants. We are the first Japanese 

cement manufacture to acquire the environmental management system certification 

IS014001 and all of our plants within Japan were certified by April 1999. 

Rapidly supplying products to meet customer's needs 

In order to comply with the various needs of the construction industry we supply a 

wide range of cement products from ordinary portland cement to specialized 

cements. We also provide various products and technologies such as soil stabilizers 

and the "Liquid Scintillation Spectroscopy" method (LSS method) for the reutilization of construction excavation waste. Moreover, using our comprehensive 

sales organization and Japan-wide service stations, we can ensure rapid delivery of 

our products meticulously corresponding to every need. 
Business Introduction Page 1 of 1 

INDUSTRIAL MATERIAL BUSINESS 

Developing to contribute to the society in various fields, we make good 

use of our abundant resources and corresponding to the requirements of 

a diversifying industries. 

A material business supplying various products from rich resources. 

The increasingly important mineral resource business 

Beginning with the sale of limestone for a wide range of applications, we are 

engaged in the sales of aggregates to ready mixed concrete producers and 

concrete products manufacturers. Positioning the resources business as a key area 

next to the cement business, Taiheiyo Cement promotes it by actively using mining 

and aggregate distribution centers in each region whilst strengthening co-operation 

with aggregate related companies throughout Japan. 

Copyright 2001 TAlHElYO CEMENT CORPORATION 

webmaster@taihe&o-cement. - . cojb 
Business Introduction Page 1 of 2 

ZERO EMISSION PROMOTION BUSINESS 

To the 2lcentry,we make an effort on the environmental security. 

we are addressing the business of waste rnanagment and waste 

treaternent,to be at the core company of the Resource Recycling Society. 

machine to solid fuel 

Zero Emission Promotion business. 

Aiming to create a Resource Circulation Society for the 21 st Century. 

Environmental technology solving waste problems 

The manufacture of cement involves the burning of raw materials at temperatures 

reaching 1 ,450°C. Therefore, because of the high temperatures involved, a very 

wide range of waste materials can be utilized in the process without detrimental 

effect to the environment. Taiheiyo Cement is actively developing technologies to 

use a variety of waste products as raw materials and also as fuel. Of particular 

note, through the manufacture of "Eco-cement", which uses municipal waste 

incineration ashes and sewage sludge as primary raw materials, we contribute to 

both energy conservation and GO2 reduction. Additionally, we are developing the 

technology to pre-process and utilize incineration ash and residues as raw 

materials for ordinary portland cement. We are treating sewage sludge and 

developing and promoting systems that use it as a cement raw material. These are 

the "Super Lime System", appropriate for large scale facilities, and the "TCC 

System", appropriate for small scale treatment facilities. We develop the ,, Transportation System", appropriate for transfering the materials from distance 

place to Cement plant. Additionally, we are tackling other environmental 

preservation aspects including CFC destruction treatment, waste plastics 

processing, redundant pachinko equipment processing, the conversion of waste 

tyres to fuel, etc. 

Zero Emission Promotion business 

In constructing the "Resource Circulation Society" even greater expectations are 

brought upon the cement industry and at Taiheiyo Cement we are positively 

meeting these expectations by developing the resource recycling business. For 

example, we are proposing to utilize ashes discharged from coal-fired power 

stations in cement manufacture, as a cementitious lining material, as a fine 

aggregate in concrete and also as a calcinated non-foaming type aggregate for 

concrete production. Moreover, we supply limestone products to coal fired power 

stations for SOX absorption in flue gas desulferisation equipment and therefore 

contribute to environmental protection by reducing air pollution and acid rain, etc. 

We then use the gypsum produced by the flue gas desulferisation equipment as a 
Business Introduction 

raw material for cement and plaster board manufacture. 

more information of zero emission . 

r"zz2 

Copyright 2001 TAIHELYO CEMENT CORPORATION 

webmaster@taiheiyo-cement. co.ip 

Page 2 of 2 
Business Introduction 

INTERNATIONAL BUSINESS 

Page 1 of I 

More globally, more dynamically ....... While significantly contributing to social and economic development in 

various countries Taiheiyo Cement continues to progress even further. 

An overseas business dynamically functioning 

in the Pacific region 

Along with operations on the west coast of the United States, in China 

and Southeast Asia, etc., Taiheiyo Cement is expanding into areas 

including Africa and the Middle East through cement exports 

corresponding to demand. 

Developing on the west coast of the United States 

In the USA we are progressing business via California.P~rfland Cement (CPC) and 

Glacier Northwest,Inc.(GWN). CPC is developing cement and ready mixed concrete 

businesses in the states of California and Arizona. Meanwhile, GWN is involved with 

the importation and sales of cement as well as the production and sales of ready 

mixed concrete and aggregates in the states of Alaska, Washington and Oregon, 

thereby covering the entire west coast of North America. 

Resource recycling business 

Our business development in China started with a joint venture for the 

construction and operation of the Dalian cement plant followed by further joint 

ventures at Jiangnan and Qinhuangdao cement plants. We also have a cement 

grinding plant at Hainan Island. Downstream of cement manufacture we also have a 

cement terminal, ready mixed concrete facilities and a plasterboard business. We 

are also progressing businesses in other Asian countries. In Vietnam we have 

established a joint venture enterprise company called NghiSon Cement where the 

construction of a cement plant is scheduled for completion in the year 2000. In 

Taiwan and the Philippines we are developing cement terminal businesses. We also 

have businesses based in other regions and are continuing to provide a stable 

supply of products and technology to each country. 

Copyright 2001 TAlHElYO CEMENT CORPORATION 

webmaster@taiheiyo-cement. cob -- 
Business Introduction 

REAL ESTATE BUSINESS 

We are redeveloping the real estate which dots the whole country, and 

making good use for the industrial society and revitalization of the area. 

Real estate business - creating new values in land. 

To more usefully make use of the land we own throughout Japan, Taiheiyo 

Cement is expanding it's real estate business. We are developing a variety 

of leasehold properties including ultra high rise intelligent office buildings, 

department stores and distribution warehouses as well as raw material site 

re-development and retail premises. 

Copyright 2001 TAIHEIYO CEMENT CORPORATION 

webmaster@taiheiyo-cement cojp 

Page 1 of 1 
Business Introduction Page 1 of 1 

POWER GENERATION BUSINESS 

Making use of our own power generation technology and experience that 

has been accumulated over a long piriod of tirne,we are looking closely at 

the next era,launching diversified buisinesses. 

A Layout of power generation equipment 

at [toigawa Plant 

Electricity supply business. 

Making use of our own power generation technology and experience that 

has been accumulated over a long period of time we are now entering the 

electricity supply business. We are constructing a high efficiency 

generating facility at Itoigawa plant which belongs to one of our Group 

companies, Myojo Cement Co., Ltd., and plan to be able to start supplying 

electricity to Tohoku Electric Power Co., during the year 2001. The 

construction of a further power generating facility is under preparation at 

the Tosa plant and is forecast to start supplying electricity to Shikoku 

Electric Power Co., by the year 2005. In addition to the supply of 

electricity to the power companies we aim to take advantage of the 

liberalization trend in power generation to further develop businesses in 

the energy supply sector. 

Copyright 2001 TAlHElYO CEMENT CORPORATION 

webmaster@faiheiyo-cement cojp 
Business Introduction Page 1 of 1 

CERAMICS AND ELECTRONICS BUSINESS 

Making progress in technology by our abundant technical expereiences,we 

are developing the future by challenging to the various fields. 

Ceramics and Electronics Business : 

A challenge for New Age Technology. 

Taiheiyo Cement has many years experience in research, development and 

production of fine ceramics and electronics. We have taken advantage of 

this experience to produce fine ceramics that have high temperature and 

corrosion resistance and also metal matrix composites. These products 

are well suited to modern technology and have applications in such areas 

as semiconductor manufacturing equipment, chemical manufacturing 

equipment and precision instruments. We have succeeded in producing 

advanced thin film piezoelectric ceramics used in mobile communications 

equipment and actuators. Additionally we have developed electronics 

products for the information and communications sector such as car audio 

systems and lightweight pagers. We provide society and industry with the 

superior products necessary for the development of the modern world. 

Copyr~ght 2001 TAlHElYO CEMENT CORPORATION 

webmaster@taihe&o-cement, coh - - 

Page 1 of 4 

March 31, 2005 

Taiheiyo Cement Group Medium-Term Business Plan 

The Taiheiyo Cement Group has finalized its Medium-Term Business Plan 2007 as a new 

medium-term plan covering the three years from fiscal 2005(the year to 31 March 2006) 

to fiscal 2007(the year to 31 March 2008). An outline of the plan is provided below. 

1. Medium-term vision and basic policy 

(1) Medium-term group vision 

Be a leading company in the Pacific Rim 

(2) Basic policy 

The Medium-Term Business Plan 2007 represents a milestone for the Taiheiyo 

Cement Group as it embarks on a new path for growth. With the goal of maximizing 

enterprise value, the group seeks to enhance profitability and improve its financial 

structure through swift reforms to its business and organizational structures. 

2. Themes 

(1) Increase operating cash flow 

1) Enhance profitability of cement businesses 

.Domestic business: stabilize earnings 

.Overseas business: maximize earnings 

2) Focus investment on priority and growth businesses 

.Overseas businesses 

.Mineral-resource and environmental businesses 

.Ceramics and electronics businesses 

(2) Strengthen group management 

1) Further identify and focus on priority businesses 

2) Establish group management system 

3) Clarify group headquarters functions 

3. Consolidated business targets 

(U billion) 

Difference 

20 

31 

FY 2007 

target 

885 

76 

Net sales 

Operating income 

FY 2004 

forecast 

865 

45 
NewsRelease 

/ordinary income I 361 641 281 

Page 2 of 4 

l~et income I 161 291 13 

I I I 

Debt redemption years 12.6 years1 8.3 yearsl -4.3 years 

Operating cash flow 

Total assets 

Interest-bearine debt 

4. Capital expenditures 

Planned capital expenditures of about Y150 billion over three years 

5. Consolidated net sales and operating income by business segment 

(U billion) 

54 

1,270 

680 

I Net sales I Operating income I 

Business segment 

Note: The "other" business segment comprises the real estate, logistics, engineering, information systems, 

76 

1,238 

630 

and other businesses 

22 

-32 

-50 

6. Basic policies for each business segment 

(1) Domestic cement business 

Domestic cement demand forecasts 

FY 2005 54 million tons 

FY 2006 53 million tons 

FY 2007 52 million tons 

Basic policies 

1) Enhance cost competitiveness 

.Manufacturing costs 

Expand use of recycled resources 

Sales and distribution costs 

Pursue efficient sales organization and optimize distribution facilities 

2) Restructure manufacturing system 

Change business structure 

Change to environmental business of Chichibu Taiheiyo Cement Corporation 
NewsRelease Page 3 of 4 

3) Normalize cement prices 

Correct price imbalance and converge on a fair price range 

Correct unprofitable and low prices, reduce regional price differences, and pass 

higher costs for coal and other raw materials onto prices 

.Restore and maintain order in logistics 

Develop a logistics system based on transparency, fairness, and simplicity 

4) Increase brand strength and reliability 

4mprove quality assurance system 

.Take common approach to issues in the ready-mixed concrete and secondaryproducts segments 

.Pursue environmental protection activities 

(2) Overseas cement business 

Further develop trilateral business structure in the Pacific Rim region, comprising 

North America, China, and Southeast Asia 

1) Maximize earnings in existing businesses 

2) Expand business by prioritizing investment in growth markets 

3) Continue strengthening export business 

(3) Mineral resources business 

Effectively use the group's abundant resources, technology, and infrastructure to 

expand business and improve the earnings structure 

1) Continue to expand volume and improve the earnings structure of the aggregates 

and mineral product businesses 

2) Expand business using surplus construction soil and other recycled resources 

3) Pursue overseas business with a focus on cement plants, limestone, and the 

environment 

(4) Environmental business 

Expand environmental business both inside and outside of cement plants 

1) Increase sales by using waste as raw materials and expand usage volume by 

improving technology to use waste as fuel 

2) Expand business through technological and business development 

3) Expand laterally into ash water treatment 

4) Expand ecocement business 

(5) Construction materials business 

1) Improve earnings through further development of existing businesses and expand 

business amid decline in construction demand 

2) Vigorously identify and focus on priority businesses and further improve 

management 

(6) Ceramics and electronics business 

1) Stabilize existing businesses by adding new technology and acquiring new 

customers 
Page 4 of 4 

2) Establish an efficient production system and cut costs 

3) Invest to boost production to increase sales and invest in new technology and 

businesses 

(7) Real estate business 

Raise group-wide asset efficiency 

7. Strengthen group management 

(1) Define the positioning of each of our businesses to further identify and focus on 

priority ones 

(2) Invest in and develop growth businesses and accelerate our withdrawal from or 

reorganization of unprofitable businesses 

8. Corporate social responsibility initiatives 

(1) Develop and strengthen compliance systems 

(2) Contribute to protecting the global environment 

(3) Restructure quality assurance system 

(4) Advance the activities of the cement industry committee of the World Business 

Council for Sustainable Development 

Copyright1 998-2004 Taiheiyo Cement Corporation