Nippon Carbon : Summary of Consolidated Financial Results for the Three Months Ended March 31, 2017 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended March 31, 2017 (Based on Japanese GAAP)

Company name: Nippon Carbon Co., Ltd. Stock exchange listing: Tokyo

Stock code: 5302 URL http://www.carbon.co.jp

Representative: President and Representative Director Takafumi Miyashita Corporate Officer and General Manager of

April 28, 2017

Inquiries:

Business Control Div.

Koji Imai TEL [phone]

Scheduled date to file Quarterly Securities Report: May 10, 2017

Scheduled date to commence dividend payments: - Preparation of supplementary material on quarterly financial results: No Holding of quarterly financial results meeting: No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended March 31, 2017 (from January 1, 2017 to March 31, 2017)

2. Consolidated operating results (cumulative) Percentages indicate year-on-year changes

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
   Three months ended March 31, 2017 Three months ended March 31, 2016	Millions of yen 5,727 5,586	% 2.5 (13.3)	Millions of yen (61) 160	% - (63.4)	Millions of yen (50) 131	% - (65.1)	Millions of yen (112) 159	% - (21.8)

   Earnings per share	Diluted earnings per share
   Three months ended March 31, 2017 Three months ended March 31, 2016	Yen (1.01) 1.44	Yen - -

3. Consolidated financial position

   Total assets	Net assets	Equity ratio	Net assets per share
   As of March 31, 2017	Millions of yen	Millions of yen	%	Yen
   	52,878	30,117	46.9	223.56
   As of December 31, 2016	53,895	30,810	47.2	229.37

4. Cash dividends

   Annual dividends per share
   1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
   Year ended December 31, 2016 Year ending December 31, 2017	Yen - -	Yen 0.00	Yen -	Yen 5.00	Yen 5.00
   Year ending December 31, 2017 (Forecast)	0.00	-	5.00	5.00

5. Forecast of consolidated financial results for the year ending December 31, 2017 (from January 1, 2017 to December 31, 2017)

   Percentages indicate year-on-year changes

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent		Earnings per share
   Six months ending June 30, 2017	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	% - -	Yen
   	11,200	0.1	200	9.1	100	(25.5)	0		0.00
   Full year	26,000	13.5	1,000	-	1,100	-	1,000		9.02

6. Notes

7. ) Changes in significant subsidiaries during the three months ended March 31, 2017

   No

   (changes in specified subsidiaries resulting in the change in scope of consolidation):

8. Application of special accounting methods for preparing quarterly consolidated financial statements: No

9. ) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: No Changes in accounting policies due to other reasons: No

   Changes in accounting estimates: No

   Restatement of prior period financial statements: No

10. Number of issued shares (common shares)

11. Total number of issued shares at the end of the period (including treasury shares)

    As of March 31, 2017 118,325,045 shares As of December 31, 2016 118,325,045 shares Number of treasury shares at the end of the period

    As of March 31, 2017 7,421,884 shares As of December 31, 2016 7,419,440 shares Average number of shares during the period (cumulative from the beginning of the fiscal year)

    Three months ended March 31, 2017 110,904,414 shares Three months ended March 31, 2016 110,908,933 shares

    Quarterly consolidated financial statements Consolidated balance sheets

    Assets

    (Millions of yen) As of December 31, 2016 As of March 31, 2017

    Current assets Cash and deposits	10,553	11,060
    Notes and accounts receivable - trade	6,991	6,800
    Merchandise and finished goods	5,852	5,407
    Work in process	3,761	3,604
    Raw materials and supplies	1,757	1,742
    Other	1,487	820
    Allowance for doubtful accounts	(4)	(1)
    Total current assets	30,400	29,434
    Non-current assets
    Property, plant and equipment
    Buildings and structures	14,249	14,292
    Accumulated depreciation and impairment loss	(9,037)	(9,109)
    Buildings and structures, net	5,212	5,182
    Machinery and equipment	38,444	38,911
    Accumulated depreciation and impairment loss	(35,835)	(36,090)
    Machinery and equipment, net	2,609	2,821
    Vehicles, tools, furniture and fixtures	2,803	2,827
    Accumulated depreciation and impairment loss	(2,575)	(2,593)
    Vehicles, tools, furniture and fixtures, net	228	233
    Land	3,514	3,518
    Construction in progress	3,925	3,606
    Total property, plant and equipment	15,490	15,362
    Intangible assets	152	143
    Investments and other assets
    Investment securities	5,904	5,948
    Long-term loans receivable	38	28
    Deferred tax assets	297	367
    Other	1,647	1,628
    Allowance for doubtful accounts	(36)	(36)
    Total investments and other assets	7,851	7,937
    Total non-current assets	23,495	23,443
    Total assets	53,895	52,878

    Liabilities

    (Millions of yen) As of December 31, 2016 As of March 31, 2017

    Current liabilities Notes and accounts payable - trade	3,124	3,056
    Short-term loans payable	7,843	7,827
    Income taxes payable	177	95
    Provision for bonuses	111	191
    Provision for directors' bonuses	13	13
    Other	1,919	1,600
    Total current liabilities	13,189	12,783
    Non-current liabilities
    Long-term loans payable	7,095	7,080
    Deferred tax liabilities	915	1,035
    Net defined benefit liability	1,256	1,237
    Provision for directors' retirement benefits	80	80
    Provision for environmental measures	22	22
    Asset retirement obligations	73	73
    Other	450	447
    Total non-current liabilities	9,895	9,976
    Total liabilities	23,085	22,760

    Net assets

    Shareholders' equity Capital stock	7,402	7,402
    Capital surplus	7,800	7,800
    Retained earnings	10,226	9,570
    Treasury shares	(1,825)	(1,826)
    Total shareholders' equity	23,604	22,947
    Accumulated other comprehensive income Valuation difference on available-for-sale securities	1,904	1,961
    Foreign currency translation adjustment	16	(14)
    Remeasurements of defined benefit plans	(87)	(101)
    Total accumulated other comprehensive income	1,833	1,845
    Non-controlling interests	5,372	5,324
    Total net assets	30,810	30,117
    Total liabilities and net assets	53,895	52,878