Taiheiyo Cement : Consolidated Financial Results for the Three Months Ended June 30, 2022

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Three Months Ended June 30, 2022

[Japanese GAAP]

August 09, 2022

Company name: TAIHEIYO CEMENT CORPORATION

Stock exchange listing: Tokyo,Fukuoka

Code number: 5233

URL: https://www.taiheiyo-cement.co.jp/english/index.html

Representative: Masafumi Fushihara

President and Representative Director

Contact: Yorimasa Kuga

General Manager of General Affairs Department

Phone: +81-3‐5801‐0334

Scheduled date of filing quarterly securities report: August 10, 2022

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes (For Analysts and Institutional Investors)

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 01, 2022 to June 30, 2022)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

June 30, 2022

176,516

10.6

1,208

(87.8)

2,185

(79.1)

(220)

-

June 30, 2021

159,612

(20.4)

9,919

41.2

10,479

46.8

6,577

101.3

(Note) Comprehensive income:

Three months ended June 30, 2022:

13,225

million yen

[

(29.7) %]

Three months ended June 30, 2021:

18,817

million yen

[

398.2%]

Basic earnings

Diluted earnings per

per share

share

Three months ended

Yen

Yen

June 30, 2022

(1.88)

-

June 30, 2021

54.88

-

(2) Consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

As of

Million yen

Million yen

%

June 30, 2022

1,212,951

553,620

42.7

March 31, 2022

1,103,007

544,799

46.3

(Reference) Equity: As of

June 30, 2022:

518,278

million yen

As of

March 31, 2022:

510,617

million yen

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2. Dividends

				Annual dividends
	1st	2nd		3rd	Year-end	Total
	quarter-end	quarter-end		quarter-end
	Yen		Yen		Yen	Yen	Yen
Fiscal year ended March 31, 2022	-		35.00	-		35.00		70.00
Fiscal year ending March 31, 2023	-
Fiscal year ending March 31, 2023			35.00		-		35.00		70.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023(April 01, 2022 to March 31, 2023)
			(% indicates changes from the previous corresponding period.)
							Profit attributable	Basic earnings
Net sales	Operating profit	Ordinary profit	to owners of
per share
							parent

	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Six months ended	380,000	11.8	(2,800)	-	(2,500)	-	(5,700)	-
September 30, 2022
Full year	854,000	20.6	32,000	(31.5)	31,500	(37.2)	18,500	(36.1)
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the three months ended June 30, 2022
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No

Yen

(48.70)

158.05

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2022:	121,985,078	shares
March 31, 2022:	121,985,078	shares
2) Total number of treasury shares at the end of the period:
June 30, 2022:	4,931,704	shares
March 31, 2022:	4,930,945	shares

3) Average number of shares during the period:
Three months ended June 30, 2022:	117,053,809	shares
Three months ended June 30, 2021:	119,868,129	shares

• The forecasts herein are 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.

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31,2022	As of June 30,2022
Assets
Current assets
	Cash and deposits	60,271	103,798
	Notes and accounts receivable - trade, and contract	143,178	149,545
	assets
	Electronically recorded monetary claims -	23,354	24,835
	operating
	Merchandise and finished goods	34,409	37,088
	Work in process	1,277	1,879
	Raw materials and supplies	58,502	81,667
	Other	19,863	23,521
	Allowance for doubtful accounts	(307)	(338)
	Total current assets	340,550	421,997
Non-current assets
	Property, plant and equipment
	Buildings and structures, net	153,705	155,173
	Machinery, equipment and vehicles, net	170,433	172,275
	Land	156,031	157,732
	Other, net	77,658	101,300
	Total property, plant and equipment	557,829	586,482
	Intangible assets
	Goodwill	80	81
	Other	27,485	27,243
	Total intangible assets	27,566	27,324
	Investments and other assets
	Investment securities	118,359	118,015
	Retirement benefit asset	22,680	22,585
	Other	37,905	38,437
	Allowance for doubtful accounts	(1,883)	(1,891)
	Total investments and other assets	177,061	177,146
	Total non-current assets	762,457	790,954
Total assets	1,103,007	1,212,951

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					(Million yen)
				As of March 31,2022	As of June 30,2022
Liabilities
	Current liabilities
		Notes and accounts payable - trade	79,685	88,206
		Electronically recorded obligations - operating	8,751	10,261
		Short-term borrowings	102,986	144,239
		Commercial papers	21,000	53,000
		Income taxes payable	4,198	1,954
		Provision for bonuses	6,246	4,811
		Other provisions	213	202
		Other	86,685	94,508
		Total current liabilities	309,768	397,184
	Non-current liabilities
		Bonds payable	60,000	60,000
		Long-term borrowings	86,600	83,743
		Retirement benefit liability	22,701	23,269
		Provision for retirement benefits for directors (and	512	492
		other officers)
		Provision for special repairs	258	277
		Provision for product compensation	3,330	3,330
		Other provisions	478	469
		Asset retirement obligations	8,703	8,967
		Other	65,855	81,594
		Total non-current liabilities	248,440	262,146
	Total liabilities	558,208	659,331
Net assets
	Shareholders' equity
		Share capital	86,174	86,174
		Capital surplus	49,729	49,724
		Retained earnings	384,154	379,865
		Treasury shares	(13,766)	(13,767)
		Total shareholders' equity	506,291	501,996
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	11,737	10,493
		securities
		Deferred gains or losses on hedges	6	9
		Revaluation reserve for land	4,897	4,897
		Foreign currency translation adjustment	(11,322)	2,087
		Remeasurements of defined benefit plans	(992)	(1,204)
		Total accumulated other comprehensive income	4,325	16,282
	Non-controlling interests	34,181	35,341
	Total net assets	544,799	553,620
Total liabilities and net assets	1,103,007	1,212,951

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the three months)

				(Million yen)
			For the three months	For the three months
			ended June 30,2021	ended June 30,2022
Net sales	159,612	176,516
Cost of sales	119,006	141,596
Gross profit	40,605	34,919
Selling, general and administrative expenses	30,686	33,710
Operating profit	9,919	1,208
Non-operating income
	Interest income	92	56
	Dividend income	695	831
	Share of profit of entities accounted for using equity	552	286
	method
	Other	602	881
	Total non-operating income	1,943	2,056
Non-operating expenses
	Interest expenses	682	535
	Other	701	544
	Total non-operating expenses	1,383	1,079
Ordinary profit	10,479	2,185
Extraordinary income
	Gain on disposal of non-current assets	132	210
	Gain on sale of investment securities	346	30
	Other	13	22
	Total extraordinary income	492	263
Extraordinary losses
	Loss on disposal of non-current assets	369	607
	Other	78	19
	Total extraordinary losses	448	627
Profit before income taxes	10,524	1,821
Income taxes	3,442	1,758
Profit	7,081	63
Profit attributable to non-controlling interests	503	283
Profit (loss) attributable to owners of parent	6,577	(220)

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