Tokai Carbon : Consolidated Financial Statements for the year ended December 31, 2015

ad354e95-d98a-4450-ad3b-cb5be2582652.pdf Financial Results for the Year Ended December 31, 2015-(J-GAAP) Consolidated

February 9, 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

Annual shareholders' meeting: March 30, 2016

Commencement of dividend payments: March 31, 2016

Submission of financial statements: March 30, 2016

Supplementary reference documents to support the financial statements:

Explanatory meeting to discuss the financial statements will be held:

Yes

Yes (for institutional investors and analysts only)

1. Consolidated Financial Results for the Year Ended December 31, 2015 (January 1, 2015 to December 31, 2015)

   
   
2. Operating Results

   Net sales		Operating income		Ordinary income		Net income
   Year ended December 31, 2015	million yen	%	million yen	%	million yen	%	million yen	%
   	104,864	(8.5)	4,088	10.4	4,317	3.3	2,484	(3.0)
   Year ended December 31, 2014	114,576	13.5	3,703	123.7	4,180	34.2	2,562	111.2

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

   
   

   Note: Comprehensive Income:

   Year ended December 31, 2015: ¥(5,742) million (-%) Year ended December 31, 2014: ¥9,737 million (-23.3%)

   
   

   Net income per share	Net income per share-fully diluted	Return on equity	Ordinary income / Total assets	Operating income / Net sales
   Year ended December 31, 2015	yen	yen	%	%	%
   	11.65	-	2.0	2.2	3.9
   Year ended December 31, 2014	12.00	-	2.0	2.1	3.2

   Note: Equity method investment gains or losses:

   Year ended December 31, 2015: ¥589 million Year ended December 31, 2014: ¥609 million

3. Financial Position

   
   

   Total assets	Net assets	Shareholders' equity ratio	Net assets per share
   As of December 31, 2015	million yen	million yen	%	yen
   	184,074	124,971	66.8	576.57
   As of December 31, 2014	210,439	132,343	61.8	609.60

   Note: Shareholders' equity:

   As of December 31, 2015: ¥122,915 million

   As of December 31, 2014: ¥129,983 million

4. Cash Flow Position




Cash flows from operating activities	Cash flows from investing activities	Cash flows from financial activities	Cash and cash equivalents at end of period
Year ended December 31, 2015	million yen	million yen	million yen	million yen
	20,613	3,189	(14,926)	22,919
Year ended December 31, 2014	11,983	(24,027)	9,728	14,738




5. Dividends

   
   

   Record date	Dividend per share					Total dividends paid (full year)	Payout ratio (consolidated)	Dividends / Net assets (consolidated)
   	End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-end	Full-year
   yen	yen	yen	yen	yen	million yen	%	%
   Year ended December 31, 2014	-	3.00	-	3.00	6.00	1,280	50.0	1.0
   Year ended December 31, 2015	-	3.00	-	3.00	6.00	1,279	51.5	1.0
   Year ending December 31, 2016 (forecast)	-	3.00	-	3.00	6.00	91.4

   
   

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




(Percentages represent year-on-year changes for the full year and increase/decrease from the same period of the previous year for the first six months)

Net sales		Operating income		Ordinary income		Net income attributable to the owners of the parent company		Net income per share
First six months	million yen	%	million yen	%	million yen	%	million yen	%	yen
	47,000	(12.9)	600	(61.8)	1,000	(47.9)	500	0.5	2.35
Full year	96,000	(8.5)	1,400	(65.8)	2,100	(51.4)	1,400	(43.7)	6.57




*Notes




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

   
   

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

   
   

2. Changes in accounting policies or estimates and retrospective restatement

   
   

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

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

5. Changes in accounting estimates: None

6. Retrospective restatement: None

   
   

7. Number of shares issued (common stock)

   
   

8. Number of shares issued at end of the period (including treasury stock): As of December 31, 2015: 224,943,104 shares

   As of December 31, 2014: 224,943,104 shares

9. Number of shares held in treasury at end of the period: As of December 31, 2015: 11,757,962 shares As of December 31, 2014: 11,714,530 shares

   
   

10. Average Number of shares during the period

Year ended December 31, 2015: 213,210,943 shares

Year ended December 31, 2014: 213,458,210 shares




Reference: Overview of Non-Consolidated Financial Results




Non-Consolidated Financial Results for the Year Ended December 31, 2015 (January 1, 2015 to December 31, 2015)




1. Operating Results

   
   

   (Percentage figures represent year-on-year changes)

   Net sales		Operating income		Ordinary income		Net income
   Year ended December 31, 2015	million yen	%	million yen	%	million yen	%	million yen	%
   	55,532	(10.4)	3,944	52.1	4,998	20.8	3,361	7.0
   Year ended December 31, 2014	61,989	4.6	2,593	11.7	4,138	(18.7)	3,140	4.8

   
   

   Net income per share	Net income per share-fully diluted
   Year ended December 31, 2015	yen	yen
   	15.77	-
   Year ended December 31, 2014	14.71	-

   
   

2. Financial Position




Total assets	Net assets	Shareholders' equity ratio	Net assets per share
As of December 31, 2015	million yen	million yen	%	yen
	142,554	97,264	68.2	456.24
As of December 31, 2014	157,509	98,392	62.5	461.44

Note: Shareholders' equity:

As of December 31, 2015: ¥97,264 million

As of December 31, 2014: ¥98,392 million




• Presentation of implementation status for audit procedure

  The audit procedure based on the Financial Instruments and Exchange Act does not apply to these Financial Results, and the audit procedure based on the Financial Instruments and Exchange Act had not been completed as of the release of these Financial Results.

  
  

• 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, refer to "1. Analysis of Business Results and Financial Position (1) Analysis of Business Results" on page 6-7.

Contents of the "Attachments" Section

1. Analysis of Business Results and Financial Position 5

2. Analysis of Business Results 5

3. Analysis of Financial Position 7

4. Dividend Policy and 2015-16 Dividends 8

5. The Corporate Group 9

6. Management Policy 11

7. Basic Corporate Philosophy 11

8. Management Goals and Objectives 11

9. Medium-Term Management Strategies 11

10. Issues to be Addressed by the Company 11

11. Other Important Management Issues 11

12. Basic Policy on Selecting Accounting Standards 12

13. Consolidated Financial Statements 13

14. Consolidated Balance Sheets 13

15. Consolidated Statements of Operations and Comprehensive Income

    (Consolidated Statement of Operation) 15

    (Consolidated Statement of Comprehensive Income) 16

16. Consolidated Statements of Changes in Shareholders' Capital 17

17. Consolidated Statements of Cash Flows 21

18. Notes to Consolidated Financial Statements 23

    (Notes on the Going Concern Assumption) 23

    (Basis for Preparation of Consolidated Financial Statements) 23

    (Changes in Accounting Policies, etc.) 26

    (Changes in Method of Presentation) 27

    (Matters Related to the Consolidated Statements of Income) 28

    (Segment Information) 30

    (Per Share Information) 33

    (Subsequent Material Events) 33

    (Disclosures Omitted) 33

19. Other 34

20. Changes in Management 34

*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: February 12, 2016 (Friday)