Note: This document is a translated version of the Japanese original. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
February 10, 2026
Taiheiyo Cement Corporation hereby announces that we have recorded impairment losses related to non-current assets of a consolidated subsidiary in the Philippines (consolidated) and a loss on valuation of shares of subsidiaries and associates on the said subsidiary (non-consolidated) for the nine months of the fiscal year ending March 31, 2026 (from April 1, 2025 to December 31, 2025). In conjunction with this, we also announce that we have revised our consolidated financial results forecasts for the fiscal year ending March 31, 2026 (announced on November 11, 2025) and non-consolidated financial results forecasts for the fiscal year ending March 31, 2026 (announced on May 13, 2025) as follows.
There is no revision to the forecast for dividends previously announced.
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The recording of impairment losses (consolidated)
We have reviewed the business plan for Taiheiyo Cement Philippines, Inc., which is our consolidated subsidiary and operates cement manufacturing and sales business in the Philippines, considering rising interest rates and sluggish demand after the impact from the COVID-19 pandemic. Alongside this, we have conducted an impairment test and, as a result, recorded impairment losses of 24.4 billion yen as extraordinary losses in the consolidated financial results for the nine months of the fiscal year ending March 31, 2026 (from April 1, 2025 to December 31, 2025). The impairment losses relate mainly to plant buildings and machinery equipment for manufacturing.
Overview of the said subsidiary
1. Name
Taiheiyo Cement Philippines, Inc.
2. Location
Cebu City, the Philippines
3. Representative's title and name
General Director, Takashi Miyashita
4. Business description
Manufacturing and sales of cement
5. Capital
16,090 million Philippine Peso (as of December 31, 2025)
6. Investing company and equity ratios
Taiheiyo Cement Corporation (100%)
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The recording of loss on valuation of shares of subsidiaries and associates (non-consolidated)
As a result of a significant decline in the real value of the said subsidiary's shares due to the recording of impairment losses stated above, loss on valuation of shares of subsidiaries and associates of 37.8 billion yen has been recorded as extraordinary losses in the non-consolidated financial results for the nine months of the fiscal year ending March 31, 2026 (from April 1, 2025 to December 31, 2025).
As the loss on valuation of shares of subsidiaries and associates recorded is eliminated on consolidation, it has no impact on consolidated financial results.
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Revised forecasts for the fiscal year ending March 31, 2026 (April 1, 2025 to
March 31, 2026)
(Consolidated)
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Basic earnings per share
Previous forecast (A)
Million yen
Million yen
Million yen
Million yen
Yen
906,000
70,000
68,000
45,000
403.75
Revised forecast (B)
906,000
70,000
69,000
17,000
152.52
Change (B-A)
0
0
1,000
(28,000)
Change (%)
0.0
0.0
1.5
(62.2)
(Reference)
Results for the fiscal year ended March 31, 2025
896,295
77,750
75,374
57,428
502.48
(Non-consolidated)
Net sales
Ordinary profit
Profit
Basic earnings per share
Previous forecast (A)
Million yen
Million yen
Million yen
Yen
355,000
44,000
40,000
358.10
Revised forecast (B)
342,000
44,000
1,000
8.95
Change (B-A)
(13,000)
0
(39,000)
Change (%)
(3.7)
0.0
(97.5)
(Reference)
Results for the fiscal year ended March 31, 2025
333,466
38,154
17,297
150.98
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Reasons for the revision of financial results forecasts for the fiscal year ending March 31, 2026
(Consolidated)
Ordinary profit is expected to be higher than the previous forecast mainly due to the recording of foreign exchange gains.
Profit attributable to owners of parent is expected to be lower than the previous forecast mainly due to the recording of impairment loss es of 24.4 billion yen as extraordinary losses, as described in "1. The recording of impairment losses (consolidated)" above.
(Non-consolidated)
Net sales are expected to be lower than the previous forecast due to a decline in domestic demand.
Profit is expected to be lower than the previous forecast mainly due to the recording of loss on valuation of shares of subsidiaries and associates of 37.8 billion yen as extraordinary losses, as described in "2. The recording of loss on valuation of shares of subsidiaries and associates (non-consolidated)" above.
* The above forecasts are based on information currently available to us and certain assumptions that we believe to be reasonable. Actual results may differ significantly from these forecasts due to various factors, including economic conditions, market demand, raw material and fuel prices, and exchange rates.
- Outlook for the Philippines business
There has been no change in our outlook for the cement market in the Philippines, where we expect demand to continue expanding over the medium- to long-term in line with the Philippines' economic growth. While continuing to position Taiheiyo Cement Philippines, Inc. as an essential foundation for strengthening business bases in Southeast Asia, we will pursue various initiatives, including cost reductions and sales volume increases, to improve earnings, which is an urgent priority.