Taiheiyo Cement Corporation · TSE:5233
Taiheiyo Cement — FY2024 Earnings Presentation
24 slides from Taiheiyo Cement's earnings presentation, May 14, 2025
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2025
Financial Results Briefing for the Fiscal Year Ended March 31, 2025 Business Overview May 14, 2025
Slide 2: Ambidexterity (Ambidextrous Management)
Ambidexterity (Ambidextrous Management) Proactive Protective Export of blended cement Increase sales prices Domestic business Promote CN/DX (refrain from chasing market share) Overseas business Strengthen U.S. business Shift from China to Southeast Asia development Deepening of vertical integration
Slide 3: Domestic Demand Forecast: Trends in domestic construction market
Domestic Demand Forecast ⚫ Trends in domestic construction market (Trillion yen) Construction investments (Million t) Domestic cement demand (by public/private) (%) 80 100 60 Nominal Public demand Private demand Private demand ratio construction investment 80 55 60 (bar graph) Housing 50 60 40 Non-h
Slide 4: Domestic Demand Forecast: Trends in domestic construction market
Domestic Demand Forecast ⚫ Trends in domestic construction market (Trillion yen) Big 50 general contractors: Works executed & works yet to be executed 30 Works executed Works yet to be executed 25 20 15 10 5 0 2025©TAIHEIYO CEMENT Prepared based on Ministry of Land, Infrastructure, Transport and Tou
Slide 5: Demand for maintenance and renewal of aging infrastructure
Domestic Demand Forecast ⚫ Demand for maintenance and renewal of aging infrastructure Examples of issues arising from aging infrastructure Percentage of social infrastructure that is 50 years of age or older (as of March 2023) Mie Prefecture March 2023 March 2030 March 2040 2007 Kisogawa Bridge; tru
Slide 6: Estimate of domestic demand
Domestic Demand Forecast ⚫ Estimate of domestic demand Per capita cement consumption in G7 countries (kg/person) Japan 800 United Domestic demand estimated from population States projection and per capita consumption 600 Canada Population Per capita Italy Domestic demand projection cement 400 estima
Slide 7: Resource recycling business with thermal power plants
Countermeasures Against Decline in Domestic Demand ⚫ Resource recycling business with thermal power Coal ash generation volume and utilization Coal ash generation volume (thousand t) plants 14,000 Reclaimed, etc. Cement raw materials 13,000 12,682 12,798 Other effective use Gypsum used as 325 133 Li
Slide 8: Export of FA cement
Countermeasures Against Decline in Domestic Demand ⚫ Export of FA cement Southeast Asian markets where the shift to blended cement is progressing Taiheiyo Cement Power companies ☆Maintain domestic plant ☆Stable operation of thermal operation rate power plants ☆Promote CN ☆Extend lifespan of landfill
Slide 9: Sales price hikes in cement
Countermeasures Against Decline in Domestic Demand ⚫ Sales price hikes in cement Cement prices [standard bulk] Sapporo Sendai Tokyo Kanazawa Nagoya Osaka Takamatsu Hiroshima Fukuoka (Yen/t) 19,000 In order to pass on prices throughout the supply +2,000 yen/t 18,000 chain, revisions to the price of c
Slide 10: U.S. Demand Forecast: Potential for growth in demand
U.S. Demand Forecast ⚫ Potential for growth in demand Cumulative per capita Population Population growth rate in density (t/person) Cumulative per capita cement consumption consumption (person/km2) the last 5 years 40 (t/person) (%) Cumulative per capita cement consumption Growth in per capita consu
Slide 11: Indicators for cement demand
U.S. Demand Forecast ⚫ Indicators for cement demand Relationship between housing units under construction and Housing units under construction in the United States cement demand Housing units (Thousand units) 住宅着工件数 under construction 住宅ローン金利（30年・固定） Mortgage interest rate (30-year, fixed) (%) (2005
Slide 12: Business environment for CalPortland Company
U.S. Demand Forecast Population dynamics over the last five years ⚫ Business environment for CalPortland Company (Thousand people) 2020 2024 Increase Increase (%) Comparison of economic scale (2024) Nominal GDP Population Arizona 7,187 7,582 395 5.5% Rank Country or U.S. state (billion USD) (thousan
Slide 13: Infrastructure Investment and Jobs Act; Recovery from LA wildfires
U.S. Demand Forecast ⚫ Infrastructure Investment and Jobs Act ⚫ Recovery from LA wildfires Scale of damage Project Funding (billion USD) Over 200 square kilometers (equivalent to around 1/3 Area burned of the 23 wards of Tokyo) Transportation 569.8 Buildings damaged Over 16,000 units Roads, bridges
Slide 14: Impact of Trump's tariffs
U.S. Demand Forecast ⚫ Impact of Trump’s tariffs Trends in U.S. cement demand and imports (2024) Cement/clinker import volume by port of discharge Red text indicates reciprocal tariff rates Canadian border 0.37 mt Greece Europe-other Canada Great Lakes 1.82 mt/20% 0.88 mt 4.85 mt 1.82 mt Türkiye Wes
Slide 15: Further strengthen base through vertical integration
Overseas Business (United States) ⚫ Further strengthen base through vertical integration Rocky Canyon Aggregate Quarry Grimes Rock, Inc. State Ready Mix Inc. Mojave Plant Central Coast Area Ventura County Oro Grande Plant Garey Aggregate Quarry State Ready Scheerer Mix Inc. Aggregate Quarry Los Ange
Slide 16: Significance of acquisition of Grimes Rock, Inc.
Overseas Business (United States) ⚫ Significance of acquisition of Grimes Rock, Inc. Cement/aggregate prices in the U.S. (USD/t) Price of coarse aggregate/fine aggregate for concrete (rate of increase with 2004 marked as 100) (2022 ranking by state) 250 25 Natural aggregate 20 Cement Consumer price
Slide 17: Overseas Business (Philippines)
Overseas Business (Philippines) ⚫ Operation of new production line & pursuit of competitiveness through coal ash utilization TCPI San Fernando Plant Luzon Island Cement Distribution Terminal (under construction) Unloading of Japanese FA cement (1st ship: 2/12/2025; 2nd ship: 4/10/2025) ➢ Aims for ma
Slide 18: CN Strategy
CN Strategy 2025©TAIHEIYO CEMENT 17
Slide 19: Initiatives for implementation of C2SP Kilns
CN Strategy ⚫ Initiatives for implementation of C2SP Kilns Steps to implement the C2SP Kiln at the DC Co., Ltd. Stable supply of waste concrete & sludge Establishment of NEDO-funded Chemical absorption CO2 mineralization C2SP technology Project Carbonatedslurrysystem; CARBOCATCH® Large-scale CO2 Cem
Slide 20: Launch sales of low-carbon blended cement
CN Strategy ⚫ Launch sales of low-carbon blended cement “Portland Blast Furnace Slag Cement Type C” Target (secondary product users) Initiatives for achieving carbon neutrality Taiheiyo Cement will launch manufacturing and sales of Target “Portland Blast Furnace Slag Cement Type C,” a low- (ready-mi
Slide 21: Cooperation with Zero Carbon Island Concept of Yakushima Town
CN Strategy ⚫ Cooperation with Zero Carbon Island Concept of Yakushima Town BRISTAR for crushing Reinforced high- fallen rocks strength concrete (non-explosive retaining wall for demolition agent) prevent falling rocks Concrete pavement CARBOCATCH® pavement Footbridge Paving blocks CARBOFIX® cement
Slide 22: Production process innovation (smart factory)
DX Strategy ⚫ Production process innovation (smart factory) ➢ Evolution of kiln operation • Establish a centralized control system for kiln operation at domestic and overseas plants • Distance support by expert operators • Establish automatic kiln operation system • Study unmanned operation during n
Slide 23: Shareholder Returns
Shareholder Returns ➢ In fiscal 2025, we schedule to increase by 10 yen to 80 yen/share (including interim dividends of 40 yen/share). ➢ In fiscal 2026, we plan to increase by 20 yen to 100 yen/share (including interim dividends of 50 yen/share). 100.0 100.0% 90.0% 《Shareholder Return Policy in 26 8
Slide 24: Translation notice
This document is a translation 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.