Tokai Carbon : FY2022 Securities report(3MB)

Securities report

Fiscal year

(January 1 to December 31,

20222022)

Tokai Carbon Co., Ltd.

(Translation) This document has been translated from the Japanese original for the convenience of overseas stakeholders. In the event of any discrepancy between this document and the Japanese original, the original shall prevail.

S e c u r i t i e s r e p o r t

1. This document has been outputted and printed by adding a table of contents and page numbers to the data contained in the securities report (pursuant to Article 24, Paragraph 1 of the Financial Instruments and Exchange Act) that was submitted using the Electronic Disclosure for Investors' NETwork (EDINET) as stipulated in Article 27-30-2 of the Act.
2. Appended to the back of this document are the audit report that was attached to the securities report when it was filed using the aforementioned method, and the internal control report and confirmation letter that were filed at the same time as the securities report.

Contents

Securities Report for Fiscal 2022
[Cover]	1
Part I Company Information	2
Section 1 Overview of the Company	2
1	Key Financial Data	2
2	Company History	4
3	Description of Business	6
4	Status of Subsidiaries and Associates	8
5	Employees	11
Section 2 Status of Business	12
1	Management Policy, Business Environment and Challenges to be Addressed, etc	12
2	Risk of Business, etc	13
3	Management's Analysis of Financial Position, Operating Results, and Cash Flows	17
4	Important Agreements for Operation, etc	22
5	Research and Development	23
Section 3 Facilities and Equipment	24
1	Capital Investment, etc	24
2	Major Facilities and Equipment	25
3	Plans for New Installation, Disposal, etc. of Facilities	27
Section 4 Status of the Submitting Company	28
1	Status of Shares, etc	28
2	Acquisition of Treasury Stock, etc	32
3	Dividend Policy	33
4	Corporate Governance, etc	34
Section 5 Status of Accounting	60
1	Consolidated Financial Statements, etc	61
2	Financial Statements, etc	107
Section 6 Outline of Stock-related Administration of Submitting Company	123
Section 7 Reference Information on Submitting Company	124
1	Information on Parent of Submitting Company, etc	124
2	Other Reference Information	124
Part 2 Information on Submitting Company's Surety Company, etc	125
Audit Report
Internal Control Report
Confirmation Letter

[Cover]

[Document submitted]	Securities report
[Applicable law]	Article 24, Paragraph 1 of the Financial Instruments and Exchange Act
[Submitted to]	Director of the Kanto Local Finance Bureau
[Date submitted]	March 30, 2023
[Fiscal year]	Fiscal 2022 (from January 1 to December 31, 2022)
[Company name]	Tokai Carbon Co., Ltd.
[Company name in English]	TOKAI CARBON CO.,LTD.
[Name and title of representative]	Hajime Nagasaka, President & Chief Executive Officer
[Address of head office]	1-2-3, Kita Aoyama, Minato-ku, Tokyo
[Telephone number]	03-3746-5100 (Switchboard)
[Contact person]	Akira Yamada, General Manager, General Affairs Department
[Nearest place of contact]	1-2-3, Kita Aoyama, Minato-ku, Tokyo
[Telephone number]	03-3746-5100 (Switchboard)
[Contact person]	Akira Yamada, General Manager, General Affairs Department
[Place available for public inspection]	Tokai Carbon Co., Ltd. Osaka Branch
	(Osaka Fukoku Seimei Bldg., 2-4 Komatsubaracho, Kita-ku,Osaka-shi, Osaka)
	Tokai Carbon Co., Ltd. Nagoya Branch
	(Nagoya International Center Bldg., 1-47-1 Nagono, Nakamura-ku, Nagoya, Aichi)
	Tokyo Stock Exchange, Inc.
	(2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)

-1-

Part I Company Information

Section 1 Overview of the Company

1 Key Financial Data

1. Consolidated financial data, etc.

Fiscal year		2018	2019	2020	2021	2022
Fiscal year-end		December 2018	December 2019	December 2020	December 2021	December 2022
Net sales	(Million	231,302	262,028	201,542	258,874	340,371
yen)
Ordinary income	(Million	72,991	52,986	6,262	24,770	42,521
yen)
Net income attributable to	(Million	73,393	31,994	1,019	16,105	22,418
owners of the parent company	yen)
Comprehensive income	(Million	65,354	33,484	743	39,006	56,689
yen)
Net assets	(Million	207,833	232,975	224,815	256,570	300,868
yen)
Total assets	(Million	329,868	462,872	459,709	512,503	576,465
yen)
Net assets per share	(Yen)	877.96	993.84	944.16	1,075.19	1,260.95
Net income per share	(Yen)	344.32	150.10	4.78	75.55	105.16
Diluted net income per share	(Yen)	-	-	-	-	-
Equity ratio	(%)	56.7	45.8	43.8	44.7	46.6
Return on equity	(%)	46.8	16.0	0.5	7.5	9.0
Price-to-earnings ratio	(Times)	3.6	7.3	269.6	16.0	10.2
Cash flows from operating	(Million	44,109	41,664	55,022	38,072	41,205
activities	yen)
Cash flows from investing	(Million	(53,849)	(99,159)	(44,301)	(35,282)	(49,900)
activities	yen)
Cash flows from financing	(Million	29,677	64,568	927	1,211	(10,629)
activities	yen)
Cash and cash equivalents at	(Million	41,124	46,443	57,727	64,435	49,377
end of the period	yen)
Number of employees	(Number)	2,944	3,714	4,178	4,289	4,378
(Average number of temporary	(453)	(457)	(444)	(448)	(434)
employees; excluded)
(Notes) 1. Diluted net income per share amount is not shown because there were no dilutive shares.

1. Provisional accounting treatments for the business combinations with Tokai Carbon Korea Co., Ltd. and Tokai Carbon CB Ltd. were finalized in fiscal 2019. Key financial data for fiscal 2018 are amounts reflecting the significant revision of the initial allocation amount of the acquisition cost due to finalization of provisional accounting treatments.
2. The Company has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the fiscal year under review. Key financial data for the current consolidated fiscal year are those after the application of these accounting standards.

-2-