Tokai Carbon : Consolidated Financial Results for the First Six Months of Fiscal Year Ending December 31, 2017

Consolidated Financial Results

August 2, 2017

for the First Six Months of Fiscal Year Ending December 31, 2017 [Japanese GAAP]

Company name: Tokai Carbon Co., Ltd. Listed on: Tokyo Stock Exchange Stock code: 5301 URL: http://www.tokaicarbon.co.jp/en/ Representative: Hajime Nagasaka, President & Chief Executive Officer

Contact: Kazuhiko Matsubara, Executive Officer and General Manager, Accounting & Finance Department Tel.: [phone]

Scheduled date for submission of quarterly report: August 3, 2017 Date for commencement of dividend payments: September 1, 2017 Supplementary notes to financial statements: Yes

Briefing on quarterly financial statements: Yes, for analysts and institutional investors

(Rounded down to nearest million yen)

1. Consolidated Financial Results for the First Six Months of Fiscal Year Ending December 31, 2017 (January 1 to June 30, 2017)

2. Consolidated Operating Results (Percentages represent year-on-year changes)

   Net Sales		Operating Income		Ordinary Income		Net Income Attributable to Owners of the Parent Company
   First six months of fiscal year ending December 31, 2017	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	49,184	9.6	4,228	‒	4,924	‒	5,854	‒
   First six months of fiscal year ending December 31, 2016	44,872	(16.9)	(80)	‒	(235)	‒	(5,900)	‒

   Note: Comprehensive income: First six months of fiscal year ending December 31, 2017: 7,299 million yen, ‒% First six months of fiscal year ending December 31, 2016: (15,701 million yen), ‒%

   Net Income per Share	Net Income per Share Fully Diluted
   First six months of fiscal year ending December 31, 2017	Yen	Yen
   	27.47	
   First six months of fiscal year ending December 31, 2016	(27.68)	

3. Consolidated Financial Position

4. Total Assets	Net Assets	Capital-to-asset ratio
   First six months of fiscal year ending December 31, 2017	Millions of yen	Millions of yen	%
   	158,903	118,561	73.9
   Fiscal year ended December 31, 2016	158,824	112,989	69.9

   For reference: Shareholders' capital: As of June 30, 2017: 117,458 million yen

   As of December 31, 2016: 110,990 million yen

5. Dividends

   Annual Dividends
   End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-end	Full Year
   Fiscal year ended December 31, 2016	Yen	Yen	Yen	Yen	Yen
   		3.00		3.00	6.00
   Fiscal year ending December 31, 2017		6.00
   Fiscal year ending December 31, 2017 (Forecast)		6.00	12.00

   Note: The dividend forecast has not been revised from the most recently announced forecast.

6. Consolidated Earnings Forecast for Fiscal Year Ending December 31, 2017 (January 1 to December 31, 2017)

7. (Percentages represent year-on-year changes)

   Net Sales		Operating Income		Ordinary Income		Net Income Attributable to Owners of the Parent Company		Net Income per Share
   Full year	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
   	98,000	10.6	8,500	651.1	9,700	469.8	9,100		42.69

   Note: The earnings forecast has not been revised from the most recently announced forecast.

   (The most recent earnings and dividend forecasts were announced on July 31, 2017 in Notice of Revision of Earnings and Dividend Forecasts.)

   * Notes:

8. Material changes in the status of subsidiary consolidation during the current consolidated fiscal period (changes in the scope of consolidation for specific subsidiaries during the period in question): None

9. Application of special accounting methods in producing the quarterly consolidated financial statements: None

10. Changes in accounting policy and changes and restatements of accounting estimates:

11. Changes in accounting policy accompanying the revision of accounting standards: None

12. Changes in accounting policy other than those listed in (a): None

13. Changes in accounting estimates: None

14. Restatements: None

15. Number of shares issued (common stock)

16. Number of shares issued at end of period (including treasury shares)

    End of 2nd quarter (June 30, 2017)

    224,943,104 shares

    December 31, 2016

    224,943,104 shares

17. Number of treasury shares at end of period

    End of 2nd quarter (June 30, 2017)

    11,784,572 shares

    December 31, 2016

    11,782,847 shares

18. Average number of shares during the period (January 1 to June 30, 2017)

19. First six months of FY 2017 (January 1 to June 30, 2017)

    213,159,519 shares

    June 30, 2016

    213,182,637 shares

    • The quarterly financial statements are not subject to quarterly review process under the Financial Instruments and Exchange Act and the review process has therefore not been completed.

    • Appropriate use of earnings forecasts and other pertinent information (Cautionary statement on forward-looking statements)

    These materials contain various forward-looking statements and other forecasts regarding performance and other matters. Such statements are based on information available at the time of preparation as well as certain reasonable assumptions. Actual results may differ materially from those expressed or implied by forward-looking statements due to a range of factors.

    (How to obtain supplemental materials to the quarterly financial statements)

    Tokai Company has scheduled a briefing on financial results for analysts and institutional investors on Wednesday, August 9, 2017. The materials for this briefing will be posted on the corporate website on that day.

    • Supplemental Materials

20. Qualitative Information Related to Consolidated Quarterly Financial Results 2

21. Operating Results 2

22. Quarterly Consolidated Financial Statements and Notes 4

23. Quarterly Consolidated Balance Sheets 4

24. Quarterly Consolidated Statements of Income and Comprehensive Income 6

    Quarterly Consolidated Statements of Income

    For the First Six Months of the Consolidated Fiscal Period 6

    Quarterly Consolidated Statements of Comprehensive Income

    For the First Six Months of the Consolidated Fiscal Period 7

25. Notes to Quarterly Consolidated Financial Statements 8

26. (Notes on the Going-Concern Assumption) 8

    (Notes on Significant Changes in Shareholders' Capital) 8

    (Segment Information) 9

    1