Nippon Carbon : Summary of Consolidated Financial Results for the Three Months Ended September 30, 2021 (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 Nine Months Ended September 30, 2021 (Based on Japanese GAAP)

				November 10, 2021
Company name:	Nippon Carbon Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	5302	URL https://www.carbon.co.jp
Representative:	President and Representative Director	Takafumi Miyashita
Inquiries:	General Manager of Business Control Div.	Hiroshi Fujikawa	TEL [phone]
Scheduled date to file Quarterly Securities Report:	November 10, 2021
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 nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen	%
Nine months ended September 30, 2021	22,258		14.6		2,197	(3.5)		2,395		(15.5)		1,451	(0.9)
Nine months ended September 30, 2020	19,416	(42.4)		2,277	(80.8)		2,833		(75.4)		1,464	(80.7)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Nine months ended September 30, 2021			131.34					-
Nine months ended September 30, 2020			132.35					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%			Yen
As of September 30, 2021		70,841					50,828				61.8		3,964.89
As of December 31, 2020		70,930					50,998				62.2		3,989.30
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen		Yen
Year ended December 31, 2020		-			100.00			-				100.00		200.00
Year ending December 31, 2021		-			100.00			-
Year ending December 31, 2021 (Forecast)													100.00		200.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Full year	30,000	11.9	3,300		9.5	3,600		0.4	2,000	10.5	180.73

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4. Notes

1. Changes in significant subsidiaries during the nine months ended September 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) 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

(4) Number of issued shares (common shares)

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

	As of September 30, 2021	11,832,504	shares	As of December 31, 2020	11,832,504	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	788,663	shares	As of December 31, 2020	766,371	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended September 30, 2021	11,050,601	shares	Nine months ended September 30, 2020	11,065,016	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2020	As of September 30, 2021
Assets
Current assets
Cash and deposits	14,600	16,631
Notes and accounts receivable - trade	9,228	10,084
Merchandise and finished goods	9,366	8,272
Work in process	4,524	5,069
Raw materials and supplies	3,469	2,833
Income taxes receivable	1,350	114
Other	509	327
Allowance for doubtful accounts	(20)	(22)
Total current assets	43,028	43,311
Non-current assets
Property, plant and equipment
Buildings and structures	17,227	17,390
Accumulated depreciation and impairment loss	(9,806)	(10,158)
Buildings and structures, net	7,420	7,232
Machinery and equipment	45,516	47,195
Accumulated depreciation and impairment loss	(37,778)	(38,849)
Machinery and equipment, net	7,737	8,345
Vehicles, tools, furniture and fixtures	3,293	3,379
Accumulated depreciation and impairment loss	(2,810)	(2,938)
Vehicles, tools, furniture and fixtures, net	483	441
Land	3,524	3,539
Construction in progress	968	85
Total property, plant and equipment	20,135	19,643
Intangible assets	198	275
Investments and other assets
Investment securities	5,026	5,342
Deferred tax assets	334	373
Other	2,209	1,897
Allowance for doubtful accounts	(2)	(2)
Total investments and other assets	7,567	7,610
Total non-current assets	27,902	27,530
Total assets		70,930	70,841

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			(Millions of yen)
		As of December 31, 2020	As of September 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	3,321	3,625
Short-term borrowings	9,425	9,430
Accrued expenses	587	601
Income taxes payable	466	575
Provision for bonuses	146	398
Provision for bonuses for directors (and other officers)	43	36
Provision for loss on order received	13	-
Provision for plant relocation related expense	159	-
Other	1,418	1,344
Total current liabilities	15,580	16,011
Non-current liabilities
Long-term borrowings	2,562	1,965
Deferred tax liabilities	422	657
Retirement benefit liability	771	772
Provision for retirement benefits for directors (and other	52	56
officers)
Provision for share-based remuneration for directors (and	70	83
other officers)
Provision for environmental measures	28	28
Asset retirement obligations	62	62
Other	380	374
Total non-current liabilities	4,351	4,001
Total liabilities	19,931	20,012
Net assets
Shareholders' equity
Share capital	7,402	7,402
Capital surplus	7,857	7,857
Retained earnings	29,287	28,527
Treasury shares	(1,913)	(2,011)
Total shareholders' equity	42,634	41,777
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,542	1,991
Foreign currency translation adjustment	53	93
Remeasurements of defined benefit plans	(84)	(73)
Total accumulated other comprehensive income	1,511	2,010
Non-controlling interests	6,852	7,040
Total net assets	50,998	50,828
Total liabilities and net assets		70,930	70,841

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		September 30, 2020	September 30, 2021
Net sales	19,416	22,258
Cost of sales	14,013	16,990
Gross profit	5,402	5,267
Selling, general and administrative expenses	3,125	3,069
Operating profit	2,277	2,197
Non-operating income
Dividend income	70	53
Foreign exchange gains	16	100
Share of profit of entities accounted for using equity method	-	9
Insurance claim income	718	191
Other	231	92
Total non-operating income	1,037	447
Non-operating expenses
Interest expenses	51	45
Share of loss of entities accounted for using equity method	110	-
Loss on retirement of non-current assets	137	2
Depreciation of inactive non-current assets	108	112
Other	73	88
Total non-operating expenses	481	249
Ordinary profit	2,833	2,395
Extraordinary income
Gain on sales of investment securities	21	179
Total extraordinary income	21	179
Extraordinary losses
Fire loss	247	102
Factory transfea expenses	-	84
Total extraordinary losses	247	187
Profit before income taxes	2,607	2,387
Income taxes - current	648	825
Income taxes - deferred	128	(12)
Total income taxes	776	813
Profit	1,831	1,573
Profit attributable to non-controlling interests	367	122
Profit attributable to owners of parent		1,464	1,451

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