Tokai Carbon : Consolidated Financial Statements for the second quarter ended June 30, 2016

Financial Results for the First Six Months of the Fiscal Year Ending December 31, 2016-Consolidated [Japan GAAP]

August 2, 2016

Company name: Tokai Carbon Co., Ltd.

Listings: Tokyo Stock Exchange, first section

Security code: 5301

URL: http://www.tokaicarbon.co.jp/ Representative: Hajime Nagasaka, President and CEO

Contact: Kazuhiko Matsubara, Executive Officer and General Manager, Accounting Department, Corporate Administration Division

Tel: [phone]

Scheduled dates

Scheduled date for submission of quarterly report: August 3, 2016 Commencement of dividend payments: September 1, 2016

Supplementary reference documents to support the

quarterly financial statements:

Explanatory meeting to discuss the quarterly financial statements will be held:

Yes

Yes (for institutional investors and analysts only)

1. Consolidated Financial Results for the First Six Months of the Fiscal Year Ending December 31, 2016 (January 1 to June 30, 2016)
2. Operating Results (Cumulative)

   Net sales		Operating income		Ordinary income		Profit/(loss) attributable to owners of the parent company
   Six months ended June 30, 2016	millions of yen	%	millions of yen	%	millions of yen	%	millions of yen	%
   	44,872	(16.9)	(80)	-	(235)	-	(5,900)	-
   Six months ended June 30, 2015	53,984	(2.6)	1,569	13.2	1,917	54.4	497	(36.3)

   (Amounts rounded down to the nearest millions of yen) (Percentage figures represent year-on-year changes)

   Note:	Comprehensive income
   Six months ended June 30, 2016:	¥(15,701) million (-%)
   Six months ended June 30, 2015:	¥3,001 million (-%)

   Profit per share	Profit per share-fully diluted
   Six months ended June 30, 2016	yen	yen
   	(27.68)	-
   Six months ended June 30, 2015	2.33	-

3. Financial Position

   Total assets	Net assets	Shareholders' equity ratio
   As of June 30, 2016	millions of yen	millions of yen	%
   	154,251	108,579	69.2
   As of December 31, 2015	184,074	124,971	66.8

   Note:	Shareholders' equity:
   As of June 30, 2016:	¥106,804 million
   As of December 31, 2015:	¥122,915 million

4. Dividends

   Record date	Annual dividend
   	End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-end	Full-year
   Year ended December 31, 2015	yen	yen	yen	yen	yen
   	-	3.00	-	3.00	6.00
   Year ending December 31, 2016	-	3.00
   Year ending December 31, 2016 (forecast)	-	3.00	6.00

   Note: Amendment of dividend forecast that have been disclosed lastly: None

5. Forecast of Consolidated Earnings for the Fiscal Year Ending December 31, 2016 (January 1 to December 31, 2016)

   (Percentage figures represent year-on-year changes)

   Net sales		Operating income		Ordinary income		Profit/(loss) attributable to the owners of the parent company		Profit per share
   Full year	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	yen
   	87,000	(17.0)	200	(95.1)	200	(95.4)	(5,700)	-	(26.74)

   Note: Amendment of dividend forecast that have been disclosed lastly: None

   *Notes
6. Changes in significant subsidiaries during the period (that accompanied changes in the scope of consolidation): None

   Newly consolidated: company (companies)	(name of company	)
   Excluded from consolidation: company (companies)	(name of company	)

7. Application of accounting principles peculiar to quarterly consolidated financial statement preparation: None
8. Changes in accounting policies and estimates, and retrospective restatements

9. Changes in accounting policies due to revisions of accounting standards, etc.: Yes

10. Changes in accounting policies other than item 1) above: None

11. Changes in accounting estimates: None

12. Retrospective restatement: None

13. Number of shares issued (common stock)

14. Number of shares issued at end of the period (including treasury stock):

    As of June 30, 2016: 224,943,104 shares

    As of December 31, 2015: 224,943,104 shares

15. Number of shares held in treasury at end of the period:

    As of June 30, 2016: 11,764,431 shares

    As of December 31, 2015: 11,757,962 shares

16. Average number of shares during the period (quarterly cumulative period):

17. Six months ended June 30, 2016: 213,182,637 shares

    Six months ended June 30, 2015: 213,221,650 shares

    *Status of conducting the "Quarterly Review"

    At the time that these quarterly financial results were released, the review process for disclosing quarterly consolidated financial statements under the Financial Instruments and Exchange Act had been completed.

    *Appropriate use of earnings forecasts and other important information

    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. For the assumptions underlying the earnings forecasts presented and other information regarding the use of such forecasts, please refer to "1. (3) Description of Forecasts of Consolidated Results and Other Information on Future Projections" on page 4 in the "Attachments" section.

    Contents of the "Attachments" Section

18. Qualitative Information Related to Consolidated Quarterly Earnings Results 2

19. Description of Operating Results 2

20. Description of Financial Position 3

21. Description of Forecasts of Consolidated Results and Other Information on Future Projections 4

22. Summary Information (Notes) 5

23. Changes in Accounting Policies and Estimates, and Retrospective Restatements 5

24. Quarterly Consolidated Financial Statements 6

25. Quarterly Consolidated Balance Sheets 6

26. Quarterly Consolidated Statements of Operations and Comprehensive Income 8

    (Quarterly Consolidated Statements of Operations)

    (First six months) 8

    (Quarterly Consolidated Statements of Comprehensive Income)

    (First six months) 9

27. Quarterly Consolidated Statements of Cash Flows 10

28. Notes to the Quarterly Consolidated Financial Statements 12

29. (Notes on the Going-concern Assumption) 12

    (Notes When the Amount of Shareholders' Equity has Changed Significantly) 12

    (Segment Information) 12

    *The company intends to conduct an explanatory meeting for investors on the date indicated below. The documents distributed during that explanatory meeting will be posted on the company website at the earliest possible opportunity.

    - Explanatory meeting for analysts: August 5, 2016 (Friday)

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