Tokuyama : Summary of Consolidated Financial Statements for the First Quarter Fiscal 2021 (JPGAAP)

Summary of Consolidated Financial Statements for the First Quarter Fiscal 2021 (JPGAAP)

			July 28, 2021
Tokuyama Corporation	Stock exchange listings:	Tokyo
(URL https://www.tokuyama.co.jp/eng/)	Local Code :	4043
Representative:	Hiroshi Yokota, President and Representative Director
Contact:	Taro Kobayashi, General Manager, Corporate Communications & Investor Relations Dept.
	[phone]

Scheduled date of dividends payout :	-
Preparation of supplementary quarterly explanatory materials: Yes
Quarterly business results IR briefing to be held:	Yes (for institutional investors and analysts)

1. Consolidated results for fiscal first quarter ended Jun. 30, 2021 (Apr. 1, 2021 - Jun. 30, 2021)

(1) Performance		Note: All amounts are rounded down to the nearest million yen.
	Net sales		Operating profit	Ordinary profit
	(millions of	Year-on-	(millions of	Year-on-	(millions of	Year-on-
	year change	year change	year change
	yen)	yen)	yen)
	[%]	[%]	[%]
First Quarter Fiscal 2021	67,497	(4.4)	7,496	12.7	7,904	18.4
First Quarter Fiscal 2020	70,624	(7.6)	6,653	(5.3)	6,674	6.0
(Note) Comprehensive income: 1st Q FY21: 4,724 million yen [(26.1)%]	1st Q FY20: 6,390 million yen [61.8 %]

	Profit attributable to		Basic earnings per		Diluted earnings
	owners of parent		share		per share
	(millions of yen)	Year-on-year		(yen)		(yen)
	change [%]
First Quarter Fiscal 2021	4,941	(5.1)		68.65		-
First Quarter Fiscal 2020	5,205	7.1		74.94		-
(2) Consolidated financial position
	Total assets	Net assets		Shareholders'		Net assets per
		Equity ratio		share
	(millions of yen)	(millions of yen)		(%)		(yen)
June 30, 2021	393,804	209,174		51.0		2,791.89
March 31, 2021	386,794	205,261		51.3		2,758.37
(Reference) Shareholders' equity:	Jun. 30, 2021:	200,982 million yen	Mar. 31, 2021:	198,561 million yen

(Note)The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Corporate Accounting Standard No. 29, March 31, 2020), etc. effective from the beginning of the first quarter ended June 30, 2021 in accordance with transitional treatment. For more details, please refer to "2. Quarterly Consolidated Financial Statements and (3) Notes on Quarterly Consolidated Financial Statements (Changes in accounting policy)" on page 13 of the Accompanying Materials to this Summary of Quarterly Consolidated Financial Statement.

2. Dividends

		Annual dividends per share
（Period）	1st quarter	2nd quarter	3rd quarter	Year-end	Total
Fiscal 2020, ended	(yen)	(yen)	(yen)	(yen)	(yen)
-	35.00	-	35.00	70.00
Mar 31, 2021
Fiscal 2021, ending	-
Mar 31, 2022
Fiscal 2021		35.00	-	35.00	70.00
（Forecast）

(Note) Revision of the latest dividends forecast: No

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3. Consolidated performance forecast for fiscal 2021 (April 1, 2021 - March 31, 2022)

		(% indicates	the	rate of	change over	the corresponding previous periods respectively)
	Net sales	Operating profit	Ordinary profit	Profit attributable to	Basic earnings
	owners of parent	per share
	(millions of	[%]	(millions	of	[%]	(millions of	[%]	(millions of	[%]	(yen)
Fiscal 2021	yen)	(10.4)		yen)	(15.9)	yen)	(15.6)	yen)	(10.3)	305.62
271,000	26,000	26,000	22,000

(Note) Revision of the latest consolidated performance forecast: No

*Notes

1. Changes in significant subsidiaries during this period
2. • No
3. Application of accounting methods specific to the preparation of the quarterly consolidated financial statements
4. • Yes

(Note) For more details, please refer to "2. Quarterly Consolidated Financial Statements and (3) Notes on Quarterly Consolidated Financial Statements (Application of accounting methods specific to the preparation of the quarterly consolidated financial statements)" on page 12 of the Accompanying Materials to this Summary of Quarterly Consolidated Financial Statement.

(3) Changes of accounting policies, changes in accounting estimates, and retrospective restatements

i. Changes in accounting policy by revision of accounting standards:	Yes
ii. Changes in accounting policy other than the above:	No
iii. Changes in accounting estimates:	No
iv. Retrospective restatements:	No

(Note) For more details, please refer to "2. Quarterly Consolidated Financial Statements and (3) Notes on Quarterly Consolidated Financial Statements (Changes in accounting policy)" on page 13 of the Accompanying Materials to this Summary of Quarterly Consolidated Financial Statement.

1. Number of shares issued (in common stock)

1. Number of shares issued at end of period (including treasury stock):
2. Number of treasury stock at end of period:
3. Average number of shares over period:

1st Quarter	72,088,327	Fiscal 2020:	72,088,327
Fiscal 2021:
1st Quarter	100,452	Fiscal 2020:	103,403
Fiscal 2021:
1st Quarter	71,985,131	1st Quarter	69,455,591
Fiscal 2021:	Fiscal 2020:

(Note) Notice on the implementation of quarterly review procedures

This summary of quarterly consolidated financial statements is not subject to quarterly review procedures in line with the Financial Instruments and Exchange Act. At the point of disclosure of this summary of quarterly consolidated financial statements, the quarterly consolidated financial statements review procedures in line with the Financial Instruments and Exchange Act are underway.

(Note) Cautions pertaining to appropriate use of performance forecast and other particular items

(Cautions related to Forward-looking statement)

The performance forecast and other forward-looking statements contained in this material have been prepared on the basis of information available at this point and certain assumptions which are judged to be rational, and may be substantially different from the actual performance because of various factors that may arise from now on.

(Access to supplementary explanations on business results)

The Company also supplementary materials "Presentation for IR Meeting" through TDnet at the same date.

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Contents for Accompanying Materials

1. Qualitative information on consolidated results for this quarter
2. 1. Explanation concerning business results
   2. Explanation concerning financial position
   3. Explanation concerning information related to future prediction such as consolidated performance forecast
3. Quarterly Consolidated Financial Statements
4. 1. Quarterly Consolidated Balance Sheets
   2. Quarterly Consolidated Statements of Income
   3. Quarterly Consolidated Statements of Comprehensive Income
   4. Notes on Quarterly Consolidated Financial Statements
   5. Segment Information

…………………	P. 2
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…………………	P. 6
…………………	P. 7
…………………	P. 8
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…………………	P. 10
…………………	P. 11
…………………	P. 12
…………………	P. 15

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1. Qualitative information on consolidated results for this quarter

(1) Explanation concerning business results

Consolidated results for the first quarter fiscal 2021 (April 1, 2021 - June 30, 2021) are summarized as follows:

The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Corporate Accounting Standard No. 29, March 31, 2020), etc. effective from the beginning of the first quarter ended June 30, 2021 in accordance with transitional treatment. The effect of this change was to decrease net sales by ¥11,458 million and cost of sales by ¥11,458 million compared with the previous accounting method. For more details, please refer to "2. Quarterly Consolidated Financial Statements and (3) Notes on Quarterly Consolidated Financial Statements (Changes in accounting policy)."

			(Unit: Millions of yen)
		Operating		Profit
	Net sales	Ordinary profit	attributable to
	profit	owners of
				parent
First Quarter Fiscal 2021	67,497	7,496	7,904	4,941
First Quarter Fiscal 2020	70,624	6,653	6,674	5,205
Rate of change (%)	(4.4)	12.7	18.4	(5.1)

Net sales

Sales rose owing to higher overseas market prices for vinyl chloride-related products and solid sales of semiconductor-related products. Nevertheless, net sales decreased 4.4%, or ¥ 3,127 million compared with the corresponding period of the previous year, to ¥ 67,497 million due to the application of Accounting Standard for Revenue Recognition, etc.

Cost of sales

Although raw material and fuel costs increased, cost of sales decreased 10.6%, or ¥ 5,145 million compared with the corresponding period of the previous year, to ¥ 43,203 million due to the application of Accounting Standard for Revenue Recognition, etc.

SG&A expenses

SG&A expenses increased 7.5%, or ¥1,175 million compared with the corresponding period of the previous year, to ¥ 16,796 million mainly due to increases in logistics costs on solid sales and R&D expenses.

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Operating profit

Operating profit increased 12.7 %, or ¥ 843 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 7,496 million. Despite higher raw material and fuel costs, this increase in operating profit was mainly due to upturn in export prices of vinyl chloride monomer and solid sales of semiconductor-related products.

Non-operating income/expenses, Ordinary profit

Non-operating income/expenses improved by ¥386 million compared with the corresponding period of the previous consolidated fiscal year.

As a result of the above, ordinary profit increased 18.4%, or ¥ 1,229 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 7,904 million.

Extraordinary income/losses, Profit before income taxes, Profit, Profit attributable to owners of parent

Extraordinary income/losses improved by ¥181 million compared with the corresponding period of the previous consolidated fiscal year.

As a result of the above, profit before income taxes increased 22.2%, or ¥ 1,411 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 7,763 million.

Profit after deducting income taxes calculated in an appropriate way decreased 9.5%, or ¥ 525 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 4,986 million.

Profit attributable to owners of parent decreased 5.1%, or ¥ 263 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 4,941 million.

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