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

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

			January 31, 2022
Tokuyama Corporation	Stock exchange listings:	Tokyo
(URL https://www.tokuyama.co.jp/eng/)	Local Code :	4043
Representative:	Hiroshi Yokota, President and Representative Director
Contact:	Tetsuya Nakano, 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 third quarter ended Dec. 31, 2021 (Apr. 1, 2021 - Dec. 31, 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)
		[%]	[%]	[%]

Third Quarter Fiscal 2021	211,609	(4.2)	17,118	(21.1)	17,665	(16.6)
Third Quarter Fiscal 2020	220,923	(6.6)	21,700	(12.3)	21,181	(10.9)
(Note) Comprehensive income: 3rd Q FY21: 14,644 million yen [(33.4)%]	3rd Q FY20: 21,991 million yen [19.3%]
	Profit attributable to		Basic earnings per	Diluted earnings
	owners of parent		share			per share
	(millions of yen)		Year-on-year		(yen)			(yen)
		change [%]
Third Quarter Fiscal 2021	13,376		(30.8)		185.87			-
Third Quarter Fiscal 2020	19,318		7.3		278.14			-

(2) Consolidated financial position

	Total assets	Net assets		Shareholders'		Net assets per
		Equity ratio		share
	(millions of yen)	(millions of yen)		(%)		(yen)
December 31, 2021	402,253	216,437		51.8		2,894.33
March 31, 2021	386,794	205,261		51.3		2,758.37
(Reference) Shareholders' equity:	Dec. 31, 2021:	208,252 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 (4) 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	-	35.00	-
Mar 31, 2022
Fiscal 2021				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)	(3.1)		yen)	(28.9)	yen)	(28.6)	yen)	(10.3)	305.66
293,000	22,000	22,000	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 (4) 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 (4) 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:

3rd Quarter	72,088,327	Fiscal 2020:	72,088,327
Fiscal 2021:
3rd Quarter	136,675	Fiscal 2020:	103,403
Fiscal 2021:
3rd Quarter	71,968,075	3rd Quarter	69,456,421
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
   6. Material Subsequent Event

…………………	P. 2
…………………	P. 2
…………………	P. 6
…………………	P. 7
…………………	P. 8
…………………	P. 8
…………………	P. 10
…………………	P. 11
…………………	P. 12
…………………	P. 15
…………………	P. 17

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1. Qualitative information on consolidated results for this quarter

(1) Explanation concerning business results

Consolidated results for the third quarter fiscal 2021 (April 1, 2021 - December 31, 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 ¥ 35,509 million and cost of sales by ¥ 35,509 million compared with the previous accounting method. For more details, please refer to "2. Quarterly Consolidated Financial Statements and (4) 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
Third Quarter Fiscal 2021	211,609	17,118	17,665	13,376
Third Quarter Fiscal 2020	220,923	21,700	21,181	19,318
Rate of change (%)	(4.2)	(21.1)	(16.6)	(30.8)

Net sales

Sales rose owing to higher petrochemical product sales prices and solid sales of semiconductor-related products. Nevertheless, net sales decreased 4.2%, or ¥ 9,314 million compared with the corresponding period of the previous year, to ¥ 211,609 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 6.4%, or ¥ 9,718 million compared with the corresponding period of the previous year, to ¥ 141,845 million due to the application of Accounting Standard for Revenue Recognition, etc.

SG&A expenses

SG&A expenses increased 10.5%, or ¥ 4,986 million compared with the corresponding period of the previous year, to ¥ 52,645 million mainly due to increases in logistics costs and R&D expenses.

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Operating profit

Operating profit decreased 21.1%, or ¥ 4,581 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 17,118 million. Despite upturn in export prices of vinyl chloride monomer, this decrease in operating profit was mainly due to higher raw material and fuel costs.

Non-operating income/expenses, Ordinary profit

Non-operating income/expenses improved by ¥ 1,065 million compared with the corresponding period of the previous consolidated fiscal year.

As a result of the above, ordinary profit decreased 16.6 %, or ¥ 3,516 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 17,665 million.

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

Extraordinary income/losses improved by ¥ 1,653 million compared with the corresponding period of the previous consolidated fiscal year.

As a result of the above, profit before income taxes decreased 8.6%, or ¥ 1,863 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 19,812 million.

Profit after deducting income taxes calculated in an appropriate way decreased 32.1%, or ¥ 6,336 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 13,386 million.

Profit attributable to owners of parent decreased 30.8%, or ¥ 5,942 million compared with the corresponding period of the previous consolidated fiscal year, to ¥ 13,376 million.

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