Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Japanese GAAP ] Company name : TAIHEIYO CEMENT CORPORATION Listing : Tokyo , Fukuoka Securities code : 5233 URL : https://www.taiheiyo-cement.co.jp/english/index.html Representative : Yoshifumi Taura Inquiries : Atsushi Ikeda Telephone : + 81-3-5801-0364 Scheduled date of commencing dividend payments : Preparation of supplementary material on financial results : Yes Holding of financial results briefing : None FASF MEMBERSHIP August 6 , 2026 President and Representative Director Executive Officer and General Manager of General Affairs Department 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results Net sales Operating profit ( Yen amounts are rounded to the nearest million . ) ( Percentages indicate year - on - year changes . ) Ordinary profit Profit attributable to owners of parent Three months ended June 30 , 2026 Million yen 221,919 % 5.1 Million yen 11,462 % 13.9 Million yen 12,309 June 30 , 2025 211,191 1.1 10,061 ( 8.9 ) 9,994 % 23.2 ( 15.0 ) Million yen % 8,346 22.3 6,822 ( 49.6 ) ( Note ) Comprehensive income : Three months ended June 30 , 2026 : Three months ended June 30 , 2025 : 10,000 million yen % ] ( 12,352 ) million yen % ] Basic earnings per share Diluted earnings per share Three months ended June 30 , 2026 June 30 , 2025 Yen 75.68 61.21 Yen 75.59 ( 2 ) Consolidated Financial Position Total assets As of June 30 , 2026 March 31 , 2026 ( Reference ) Equity : As of June 30 , 2026 : As of March 31 , 2026 : Million yen 1,590,007 1,479,061 2. Dividends Net assets Capital adequacy ratio Million yen % 706,491 42.4 712,237 46.0 674,051 million yen 680,569 million yen 1st quarter - end Annual dividends 2nd 3rd quarter - end quarter - end Yen Fiscal year ended March 31 , 2026 Yen 50.00 Year - end Total Yen Yen 50.00 Yen 100.00 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( Forecast ) 60.00 60.00 120.00 ( Note ) Revision to the forecast for dividends announced most recently : None
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3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings per share Million yen % Million yen % Million yen % Million yen % Yen Six months ending September 30, 2026 470,000 7.3 27,000 (17.8) 25,500 (22.6) 34,000 38.9 310.40 Full year 1,027,000 14.3 76,000 1.8 70,000 (6.8) 63,000 148.0 575.14 (Note) Revision to the financial results forecast announced most recently: None * Notes: (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes (Note) For details, please see “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to quarterly consolidated financial statements, (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)” on page 8 of the Attached Materials of these Quarterly Financial Results. (3) Changes in accounting policies, changes in accounting estimates, and restatement 1) Changes in accounting policies due to revisions to accounting standards and other regulations: None 2) Changes in accounting policies due to other reasons: None 3) Changes in accounting estimates: None 4) Restatement: None (4) Number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): June 30, 2026: 118,191,578 shares March 31, 2026: 118,191,578 shares 2) Total number of treasury shares at the end of the period: June 30, 2026: 9,228,390 shares March 31, 2026: 6,588,740 shares 3) Average number of shares outstanding during the period: Three months ended June 30, 2026: 110,282,976 shares Three months ended June 30, 2025: 111,443,821 shares * Review of the Japanese -language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (V oluntary) * Proper use of earnings forecasts, and other special matters < Cautionary Note Regarding Forward-looking Statements> Forward-looking statements such as performance forecasts included in this document are based on information currently available to the Company and on certain assumptions deemed reasonable . However, actual results may differ materially due to various factors, including economic conditions, market demand, raw material prices, exchange rates , etc. For matters concerning earnings forecasts, please see “1. Overview of Operating Results, etc., (3) Explanation of consolidated financial results forecast and other fo rward-looking information” on page 3 of the Attached Materials of these Quarterly Financial Results.
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1 Table of Contents of the Attached Materials 1. Overview of Operating Results, etc. ..................................................................................................................... 2 (1) Overview of operating results for the quarter under review........................................................................... 2 (2) Overview of financial position for the quarter under review ......................................................................... 3 (3) Explanation of consolidated financial results forecast and other forward-looking information .................... 3 2. Quarterly Consolidated Financial Statements and Major Notes ........................................................................... 4 (1) Quarterly Consolidated Balance Sheets ......................................................................................................... 4 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ................................................. 6 Quarterly Consolidated Statements of Income (For the three months) .......................................................... 6 Quarterly Consolidated Statements of Comprehensive Income (For the three months) ................................ 7 (3) Notes to quarterly consolidated financial statements ..................................................................................... 8 (Note relating to going concern assumption) ........................................................................................................ 8 (Notes in the case of significant changes in amount of shareholders’ equity) ...................................................... 8 (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) .. 8 (Segment information, etc.) .................................................................................................................................. 9 (Statements of cash flows) .................................................................................................................................. 10
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2 1. Overview of Operating Results, etc. (1) Overview of operating results for the quarter under review During the three months ended June 30, 2026, the Japanese economy recovered moderately on the back of factors including continued improvement in the employment and income situation, the recovery of capital investment and consumer spending, and solid public investment. However, the economic outlook continues to require close monitoring, especially with the impact of the Middle East situation. As for the global economy, while the U.S. economy is experiencing a recent slowdown in consumer spending, corporate earnings and capital investment are on the rise, and the economic expansion is expected to continue. Under such circumstances, net sales for the three months ended June 30, 2026 were ¥221,919 million (up ¥10,728 million year-on-year), operating profit was ¥11,462 million (up ¥1,402 million year-on-year), ordinary profit was ¥12,309 million (up ¥2,315 million year-on-year), and profit attributable to owners of parent was ¥8,346 million (up ¥1,524 million year-on-year). Operating results by segment are as follows. The presented amounts are figures before elimination of inter- segment transactions. ① Cement Business While domestic cement demand was supported to some extent by the Noto Peninsula Earthquake recovery and reconstruction efforts and construction related to nuclear power plants, it was weighed down by soaring construction costs, chronic labor shortages , the spread of a five -day week at construction sites , as well as a continued slump in demand for private and public construction projects in various regions, with the exception of a few large-scale projects. As a result, domestic cement demand decreased 5.5% year-on-year to 7.21 million tons, of which, imported cement decreased 97.9% year-on-year to 0.1 thousand tons. Total exports increased 3.9% year-on-year to 2.25 million tons. Under these circumstances, the Group’s domestic cement sales by volume, including consignment sales, decreased 6.8% year-on-year to 2.61 million tons. Exports increased 4.5% year-on-year to 0.93 million tons. At West Coast U.S. cement businesses, sales by volume declined year-on-year mainly due to the slowdown of housing demand and poor weather conditions, while selling prices were higher year-on-year. In the cement business in Vietnam, sales by volume, including exports, increased year-on-year due to a recovery in domestic demand. In the cement business in the Philippines, sales by volume increased year-on-year. As a result of the above, net sales were ¥163,784 million (up ¥7,547 million year-on-year), and operating profit was ¥5,975 million (up ¥1,529 million year-on-year). ② Mineral Resources Business Despite a nationwide decline in sales by volume, t he aggregates business performed firmly due to special demand in the Hokkaido region. In the mineral products business, sales by volume of limestone for overseas steelmaking declined. In addition, efforts to pass on various cost increases to selling prices progressed in the entire business. As a result, net sales were ¥23,096 million (up ¥597 million year-on-year), and operating profit was ¥2,731 million (up ¥199 million year-on-year). ③ Environmental Business While coal ash treatment and the treatment of raw material-related waste performed firmly, there was a decline in the volume of operations of intermediary storage of soil generated from the Linear Chuo Shinkansen construction due to the impact of construction plans. As a result, net sales were ¥20,815 million (up ¥1,755 million year-on-year), and operating profit was ¥1,872 million (down ¥116 million year-on-year). ④ Construction Materials Business The operating results were affected by various cost increases including shipping and labor costs, in addition to sluggish sales of ALC (Autoclaved Lightweight aerated Concrete) as well as construction and civil engineering materials. As a result, net sales were ¥10,092 million (down ¥340 million year-on-year), and operating profit was ¥88 million (down ¥279 million year-on-year). ⑤ Other Business Net sales were ¥19,147 million (up ¥1,584 million year-on-year), and operating profit was ¥834 million (up ¥92 million year-on-year).
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3 (2) Overview of financial position for the quarter under review Total assets increased ¥110,945 million from the end of the previous fiscal year to ¥1,590,007 million. Current assets increased ¥104,399 million from the end of the previous fiscal year to ¥517,000 million, and non-current assets increased ¥6,546 million to ¥1,073,007 million. The increase in current assets was mainly due to an increase in cash and deposits. The increase in non-current assets was mainly due to an increase in construction in progress and other property, plant and equipment. Liabilities increased ¥116,691 million from the end of the previous fiscal year to ¥883,515 million. Current liabilities increased ¥118,864 million from the end of the previous fiscal year to ¥535,766 million, and non-current liabilities decreased ¥2,173 million to ¥347,750 million. The increase in current liabilities was mainly due to a n increase in short-term borrowings. The decrease in non-current liabilities was mainly due to a decrease in long-term borrowings. Interest-bearing debt (total amount of short -term borrowings, commercial papers, current portion of bonds payable, bonds payable, and long-term borrowings) increased ¥130,626 million from the end of the previous fiscal year to ¥520,393 million. Net assets decreased ¥5,746 million from the end of the previous fiscal year to ¥706,491 million. The decrease in net assets was mainly due to purchase of treasury shares. (3) Explanation of consolidated financial results forecast and other forward-looking information The financial results forecast for the first half and the full year remains unchanged from the forecast announced on July 21, 2026 at this time.
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4 2. Quarterly Consolidated Financial Statements and Major Notes (1) Quarterly Consolidated Balance Sheets (Million yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 63,719 158,907 Notes and accounts receivable - trade, and contract assets 147,951 147,969 Electronically recorded monetary claims - operating 38,521 41,960 Merchandise and finished goods 59,353 62,202 Work in process 1,696 2,133 Raw materials and supplies 76,188 79,999 Other 25,293 23,993 Allowance for doubtful accounts (121) (163) Total current assets 412,601 517,000 Non-current assets Property, plant and equipment Buildings and structures, net 172,088 171,785 Machinery, equipment and vehicles, net 260,860 264,601 Land 164,938 167,601 Other, net 151,272 158,301 Total property, plant and equipment 749,158 762,288 Intangible assets Goodwill 81 430 Other 43,435 43,157 Total intangible assets 43,516 43,587 Investments and other assets Investment securities 158,763 152,613 Retirement benefit asset 69,838 69,785 Other 46,087 45,638 Allowance for doubtful accounts (901) (905) Total investments and other assets 273,787 267,132 Total non-current assets 1,066,461 1,073,007 Total assets 1,479,061 1,590,007
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5 (Million yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 73,662 74,055 Electronically recorded obligations - operating 17,372 17,856 Short-term borrowings 158,500 255,485 Commercial papers 26,000 62,000 Current portion of bonds payable 12,700 12,700 Income taxes payable 5,822 2,801 Provision for bonuses 7,828 5,814 Provision for product compensation 991 965 Other provisions 305 126 Other 113,722 103,965 Total current liabilities 416,902 535,766 Non-current liabilities Bonds payable 42,300 42,300 Long-term borrowings 150,267 147,908 Retirement benefit liability 22,546 22,630 Provision for retirement benefits for directors (and other officers) 486 468 Provision for special repairs 354 366 Provision for product compensation 2,121 2,121 Other provisions 360 359 Asset retirement obligations 14,447 14,885 Other 117,040 116,712 Total non-current liabilities 349,922 347,750 Total liabilities 766,824 883,515 Net assets Shareholders’ equity Share capital 86,174 86,174 Capital surplus 49,493 49,509 Retained earnings 432,913 435,712 Treasury shares (21,516) (31,514) Total shareholders’ equity 547,064 539,881 Accumulated other comprehensive income Valuation difference on available-for-sale securities 36,819 32,632 Deferred gains or losses on hedges 1 1 Revaluation reserve for land 3,419 3,381 Foreign currency translation adjustment 60,122 66,428 Remeasurements of defined benefit plans 33,145 31,728 Total accumulated other comprehensive income 133,505 134,170 Non-controlling interests 31,668 32,441 Total net assets 712,237 706,491 Total liabilities and net assets 1,479,061 1,590,007
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6 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income (For the three months) (Million yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 211,191 221,919 Cost of sales 164,731 171,595 Gross profit 46,460 50,324 Selling, general and administrative expenses 36,400 38,862 Operating profit 10,061 11,462 Non-operating income Interest income 158 252 Dividend income 1,569 2,026 Share of profit of entities accounted for using equity method - 474 Other 766 680 Total non-operating income 2,493 3,432 Non-operating expenses Interest expenses 1,425 1,926 Share of loss of entities accounted for using equity method 9 - Other 1,127 659 Total non-operating expenses 2,560 2,585 Ordinary profit 9,994 12,309 Extraordinary income Gain on disposal of non-current assets 264 153 Gain on sale of investment securities 1 632 Other 22 34 Total extraordinary income 287 819 Extraordinary losses Loss on disposal of non-current assets 667 641 Other 22 75 Total extraordinary losses 689 716 Profit before income taxes 9,592 12,411 Income taxes 2,384 3,481 Profit 7,208 8,930 Profit attributable to non-controlling interests 387 584 Profit attributable to owners of parent 6,822 8,346
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7 Quarterly Consolidated Statements of Comprehensive Income (For the three months) (Million yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 7,208 8,930 Other comprehensive income Valuation difference on available-for-sale securities 2,591 (4,058) Deferred gains or losses on hedges 0 1 Foreign currency translation adjustment (18,966) 6,495 Remeasurements of defined benefit plans, net of tax (482) (1,399) Share of other comprehensive income of entities accounted for using equity method (2,702) 30 Total other comprehensive income (19,560) 1,070 Comprehensive income (12,352) 10,000 (Breakdown) Comprehensive income attributable to owners of parent (11,667) 9,049 Comprehensive income attributable to non-controlling interests (685) 951
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8 (3) Notes to quarterly consolidated financial statements (Note relating to going concern assumption) Not applicable. (Notes in the case of significant changes in amount of shareholders’ equity) At the Board of Directors meeting held on May 12, 2026, the Company resolved the matters pertaining to the purchase of treasury shares and the specific method of purchase pursuant to the provisions of Article 156 of the Companies Act as applied by replacing certain terms under the provisions of Article 165, Paragraph 3 of the same Act. The Company decided at the same time to use the fully committed share repurchase (FCSR) method to purchase treasury shares. Furthermore, in accordance with the above resolution, the Company has purchased treasury shares as follows. For details, please refer to “Notice Regarding Acquisition of Own Shares and Acquisition of Own Shares through the Off-Auction Own Share Repurchase Trading System (ToSTNeT-3) (Acquisition of Own Shares Pursuant to Article 165, Clause 2 of the Companies Act and Acquisition of Own Shares through Fully Committed Share Repurchase (Japanese ASR))” released on May 12, 2026 , as well as “Notice of the Result and Completion of the Acquisition of Own Shares through Off-Auction Own Share Repurchase Trading System (ToSTNeT-3)” released on May 13, 2026. (1) Reasons for treasury share acquisition Based on the Medium-Term Management Plan, the Company decided to purchase treasury shares in order to enhance shareholder returns and improve capital efficiency. (2) Acquisition method Purchase through off-auction own share repurchase trading system (ToSTNeT -3) of the Tokyo Stock Exchange (3) Details of the purchase (i) Type of shares purchased Common stock (ii) Total number of shares purchased 2,644,800 shares (2.4% of the total number of shares outstanding, excluding treasury shares) (iii) Total purchase amount ¥9,999,988,800 (4) Purchase result Based on the above resolution, the Company purchased 2,644,800 shares of its common stock (total purchase amount of ¥10 .0 billion) on May 13, 2026 , thereby completing the purchase of treasury shares authorized by said resolution. Consequently, treasury shares amounted to ¥31,514 million as of June 30, 2026. (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements) (Calculation of tax expenses) Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting to profit before income taxes for the consolidated fiscal year, including the first quarter of the fiscal year under review, and multiplying profit before income taxes by such estimated effective tax rate. However, in cases where the calculation of tax expenses using such estimated effective tax rate yields a result that is not reasonable to a significant extent, the result is multiplied by the statutory income tax rate.
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9 (Segment information, etc.) [Segment information] I. For the three months ended June 30, 2025 1. Information on net sales, profit or loss by reportable segment (Million yen) Reportable segment Other (Note) 1 Total Adjustments (Note) 2 Consolidated Total (Note) 3 Cement Business Mineral Resources Business Environ- mental Business Construction Materials Business Total Net sales Sales to outside customers 154,845 16,317 18,378 10,019 199,559 11,632 211,191 - 211,191 Inter-segment sales 1,391 6,183 681 413 8,668 5,931 14,599 (14,599) - Total 156,237 22,500 19,059 10,431 208,227 17,563 225,790 (14,599) 211,191 Segment profit 4,446 2,531 1,988 366 9,332 743 10,074 (13) 10,061 Notes: 1. The “Other” section is a business segment that is not included in the reportable segments and includes the real estate, engineering, data processing, finance, transportation and warehousing, chemical products, sports, and electric power supply businesses. 2. Adjustments to segment profit consist of elimination of inter-segment transactions. 3. Segment profit is adjusted with the operating profit in the quarterly consolidated statements of income. 2. Information on impairment losses on non-current assets, goodwill, etc. by reportable segment Not applicable. II. For the three months ended June 30, 2026 1. Information on net sales, profit or loss by reportable segment (Million yen) Reportable segment Other (Note) 1 Total Adjustments (Note) 2 Consolidated Total (Note) 3 Cement Business Mineral Resources Business Environ- mental Business Construction Materials Business Total Net sales Sales to outside customers 162,384 16,871 19,810 9,730 208,796 13,123 221,919 - 221,919 Inter-segment sales 1,399 6,225 1,004 362 8,990 6,024 15,015 (15,015) - Total 163,784 23,096 20,815 10,092 217,786 19,147 236,933 (15,015) 221,919 Segment profit 5,975 2,731 1,872 88 10,666 834 11,500 (38) 11,462 Notes: 1. The “Other” section is a business segment that is not included in the reportable segments and includes the real estate, engineering, data processing, finance, transportation and warehousing, chemical products, sports, and electric power supply businesses. 2. Adjustments to segment profit consist of elimination of inter-segment transactions. 3. Segment profit is adjusted with the operating profit in the quarterly consolidated statements of income. 2. Information on impairment losses on non-current assets, goodwill, etc. by reportable segment Not applicable.
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10 (Statements of cash flows) Quarterly consolidated statements of cash flows for the three months ended June 30, 2026 have not been prepared. Depreciation (including depreciation related to intangible assets excluding goodwill) and amortization of goodwill for the three months ended June 30, 2026 are as follows. For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation ¥16,657 million ¥16,967 million Amortization of goodwill ¥7 million ¥26 million