Nippon Carbon : Summary of Consolidated Financial Results for the Year Ended December 31, 2020(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 Year Ended December 31, 2020

(Based on Japanese GAAP)

Company name: Nippon Carbon Co., Ltd.

Stock exchange listing: Tokyo

Stock code: Representative: Inquiries:

Takafumi Miyashita
Hiroshi Fujikawa
Scheduled date of ordinary general meeting of shareholders:	March 26, 2021
Scheduled date to file Securities Report:	March 26, 2021
Scheduled date to commence dividend payments:	March 29, 2021
Preparation of supplementary material on financial results:	No
Holding of financial results meeting:	No

5302 URLhttp://www.carbon.co.jpPresident and Representative Director General Manager of Business Control Div.

TEL [phone]

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)

(1) Consolidated operating results

February 10, 2021

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Year ended December 31, 2020 Year ended December 31, 2019	Millions of yen 26,802 44,931	% (40.3) (6.4)	Millions of yen 3,015 14,827	% (79.7) (9.6)	Millions of yen 3,587 15,106	% (76.2) (8.5)	Millions of yen 1,810 9,700	% (81.3) (5.8)

Earnings per share	Diluted earnings per share	Profit attributable to owners of parent/equity	Ordinary profit/total assets	Operating profit/net sales
Year ended December 31, 2020 Year ended December 31, 2019	Yen 163.64 876.81	Yen - -	% 4.1 23.8	% 4.8 19.9	% 11.3 33.0

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of December 31, 2020 As of December 31, 2019	Millions of yen 70,930 77,939	Millions of yen 50,998 51,654	% 62.2 57.9	Yen 3,989.30 4,080.33

(3) Consolidated cash flows

Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
Year ended December 31, 2020 Year ended December 31, 2019	Millions of yen 3,876 4,792	Millions of yen (4,716) (3,693)	Millions of yen (2,412) (2,996)	Millions of yen 14,455 17,707

2. Cash dividends

Annual dividends per share	Total cash dividends (Total)	Dividend payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended December 31, 2019 Year ended December 31, 2020	Yen -	Yen 100.00 100.00	Yen -	Yen 100.00 100.00	Yen 200.00 200.00	Millions of yen 2,212 2,212	% 22.8 122.2	% 5.4 5.0
Year ending December 31, 2021 (Forecast)	100.00	100.00	200.00	110.7

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 owners of parent	Earnings per share
Six months ending June 30, 2021 Full year	Millions of yen 14,000 30,000	% 2.1 11.9	Millions of yen 1,100 3,300	% (51.1) 9.5	Millions of yen 1,200 3,600	% (45.4) 0.4	Millions of yen 700 2,000	% (40.4) 10.5	Yen 63.26 180.73

4. Notes

• (1) Changes in significant subsidiaries during the year ended December 31, 2020

  No

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

• (2) 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: Changes in accounting policies due to other reasons:

Changes in accounting estimates:

Restatement of prior period financial statements:

No No No No

(3) Number of issued shares (common shares)

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

As of December 31, 2020 11,832,504 shares

As of December 31, 2019 11,832,504 shares

As of December 31, 2020 11,832,504 shares As of December 31, 2

Number of treasury shares at the end of the period

As of December 31, 2020 766,371 shares

As of December 31, 2019 769,438 shares

As of December 31, 2020

Average number of shares during the period

Year ended December 31, 2020 11,065,281 shares

Year ended December 31, 2019 11,063,324 shares

Year ended December 31, 2020 11,065,281 shares Year ended Dece

Consolidated financial statements Consolidated balance sheets

(Millions of yen)
As of December 31, 2019	As of December 31, 2020
Assets Current assets Cash and deposits Notes and accounts receivable - trade Merchandise and finished goods Work in process Raw materials and supplies Income taxes receivable Other Allowance for doubtful accounts	17,852 14,010 9,153 4,829 4,220 - 562 (20)	14,600 9,228 9,366 4,524 3,469 1,350 509 (20)
Total current assets	50,607	43,028
Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation and impairment loss	16,680 (9,536)	17,227 (9,806)
Buildings and structures, net	7,144	7,420
Machinery and equipment Accumulated depreciation and impairment loss	44,008 (37,232)	45,516 (37,778)
Machinery and equipment, net	6,775	7,737
Vehicles, tools, furniture and fixtures Accumulated depreciation and impairment loss	3,264 (2,708)	3,293 (2,810)
Vehicles, tools, furniture and fixtures, net	555	483
Land Construction in progress	3,523 821	3,524 968
Total property, plant and equipment	18,820	20,135
Intangible assets Investments and other assets Investment securities Deferred tax assets Other Allowance for doubtful accounts	160 6,044 371 1,946 (10)	198 5,026 334 2,209 (2)
Total investments and other assets	8,351	7,567
Total non-current assets	27,332	27,902
Total assets	77,939	70,930

(20)

(9,806)

(37,778)

(2,810)

(2)

(Millions of yen)
As of December 31, 2019	As of December 31, 2020
Liabilities Current liabilities Notes and accounts payable - trade Short-term borrowings Accrued expenses Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Provision for loss on order received Provision for plant relocation related expense Other	5,821 8,390 1,118 1,995 214 96 - 317 2,770	3,321 9,425 587 466 146 43 13 159 1,418
Total current liabilities	20,725	15,580
Non-current liabilities Long-term borrowings Deferred tax liabilities Retirement benefit liability Provision for retirement benefits for directors (and other officers) Provision for share-based remuneration for directors (and other officers) Provision for environmental measures Asset retirement obligations Other	3,637 569 757 43 70 28 62 390	2,562 422 771 52 70 28 62 380
Total non-current liabilities	5,559	4,351
Total liabilities	26,284	19,931
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	7,402 7,857 29,689 (1,921)	7,402 7,857 29,287 (1,913)
Total shareholders' equity	43,028	42,634
Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans	2,129 49 (66)	1,542 53 (84)
Total accumulated other comprehensive income	2,112	1,511
Non-controlling interests	6,513	6,852
Total net assets	51,654	50,998
Total liabilities and net assets	77,939	70,930

(1,913)

(84)