Nippon Carbon : (Delayed)FY2021 Financial Information

Financial Information

1. Basis of preparing consolidated financial statements and non-consolidated financial statements
2. 1. Nippon Carbon Co., Ltd. (the "Company") prepares its consolidated financial statements in accordance with the Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements (Ministry of Finance Order No. 28 of 1976).
   2. The Company prepares its non-consolidated financial statements in accordance with the Regulation on Terminology, Forms, and Preparation Methods of Financial Statements (Ministry of Finance Order No. 59 of 1963; the "Regulation on Financial Statements").
      Furthermore, the Company is a special company submitting financial statements, and prepares its non- consolidated financial statements pursuant to the provisions of Article 127 of the Regulation on Financial Statements.
3. Independent audit
   The Company's consolidated and non-consolidated financial statements for the fiscal year ended December 31, 2021 (from January 1, 2021 to December 31, 2021) were audited by Deloitte Touche Tohmatsu LLC, pursuant to the provisions of Article 193-2, paragraph (1) of the Financial Instruments and Exchange Act.
4. Extra measures to ensure fair presentation of consolidated financial statements and other information
   The Company takes extra measures to ensure fair presentation of consolidated financial statements and other information. Specifically, the Company strives to understand and properly address changes in accounting systems and details of accounting standards by maintaining membership in the Financial Accounting Standards Foundation, attending seminars held by audit firms and other external organizations, subscribing to accounting magazines, and other means.

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1. Consolidated Financial Statements and Other Information

1. Consolidated Financial Statements

1. Consolidated Balance Sheets

				(Millions of yen)
	As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits		14,600		17,865
Notes and accounts receivable - trade	*3	9,228	*3	11,592
Merchandise and finished goods		9,366		7,896
Work in process		4,524		4,595
Raw materials and supplies		3,469		2,886
Income taxes receivable		1,350		-
Other		509		585
Allowance for doubtful accounts		(20)		(22)
Total current assets		43,028		45,399
Non-current assets
Property, plant and equipment
Buildings and structures		17,227		17,407
Accumulated depreciation and impairment		(9,806)		(10,230)
Buildings and structures, net		7,420		7,177
Machinery and equipment		45,516		47,249
Accumulated depreciation and impairment		(37,778)		(39,053)
Machinery and equipment, net		7,737		8,195
Vehicles, tools, furniture and fixtures		3,293		3,392
Accumulated depreciation and impairment		(2,810)		(2,927)
Vehicles, tools, furniture and fixtures, net		483		464
Land		3,524		3,544
Construction in progress		968		132
Total property, plant and equipment	*2	20,135	*2	19,515

Intangible assets

Investments and other assets

Investment securities

Deferred tax assets

Other

Allowance for doubtful accounts Total investments and other assets

Total non-current assets

Total assets

	198		264
*1	5,026	*1	5,172
	334		378
*1	2,209	*1	1,964
	(2)		(2)
	7,567		7,513
	27,902		27,292
	70,930		72,692

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(Millions of yen)

As of December 31, 2020

As of December 31, 2021

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

Total current liabilities

Non-current liabilities

Long-term borrowings

Deferred tax liabilities

Retirement benefit liability

Provision for retirement benefits for directors (and other officers)

Provision for share awards for directors (and other officers)

Provision for environmental measures

Asset retirement obligations

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans

*3	3,321	*3	3,900
*2	9,425	*2	9,180
	587		516
	466		1,038
	146		208
	43		59
	13		-
	159		-
*3	1,418	*3	2,123
	15,580		17,027
	2,562		1,387
	422		633
	771		776
	52		55
	70		89
	28		28
	62		62
	380		373
	4,351		3,407
	19,931		20,434
	7,402		7,402
	7,857		7,857
	29,287		29,805
	(1,913)		(2,011)
	42,634		43,054
	1,542		1,868
	53		124
	(84)		(59)

Total accumulated other comprehensive income	1,511	1,932
Non-controlling interests	6,852	7,270
Total net assets	50,998	52,257
Total liabilities and net assets		70,930	72,692

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1. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income

				(Millions of yen)
	Fiscal year ended	Fiscal year ended
	December 31, 2020	December 31, 2021
Net sales		26,802		31,578
Cost of sales	*2	19,673	*2	23,539
Gross profit		7,129		8,038
Selling, general and administrative expenses	*1, *2	4,113	*1, *2	4,332
Operating profit		3,015		3,706
Non-operating income
Interest income		1		4
Dividend income		119		99
Foreign exchange gains		31		146
Share of profit of entities accounted for using equity		-		42
method
Subsidy income		2		2
Compensation income		150		366
Insurance claim income		796		208
Other		72		221
Total non-operating income		1,174		1,092
Non-operating expenses
Interest expenses		68		61
Loss on retirement of non-current assets		181		20
Share of loss of entities accounted for using equity		113		-
method
Depreciation of inactive non-current assets		148		149
Loss on disaster		48		59
Other		42		72
Total non-operating expenses		602		363
Ordinary profit		3,587		4,434
Extraordinary income
Gain on sale of investment securities		62		179
Total extraordinary income		62		179

Extraordinary losses

Loss on fire

Plant relocation related expense

*3

*4

249

139

*3

*4

97

84

Total extraordinary losses	389	182
Profit before income taxes	3,260	4,431
Income taxes - current	797	1,362
Income taxes - deferred	182	7
Total income taxes	980	1,370
Profit	2,280	3,060
Profit attributable to non-controlling interests	469	331
Profit attributable to owners of parent		1,810	2,729

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Consolidated Statements of Comprehensive Income

				(Millions of yen)
	Fiscal year ended	Fiscal year ended
	December 31, 2020	December 31, 2021
Profit		2,280		3,060
Other comprehensive income
Valuation difference on available-for-sale securities		(590)		332
Foreign currency translation adjustment		9		114
Remeasurements of defined benefit plans, net of tax		(17)		24
Total other comprehensive income	*	(599)	*	471
Comprehensive income		1,681		3,532
Comprehensive income attributable to
Comprehensive income attributable to owners of parent		1,209		3,157
Comprehensive income attributable to non-controlling		471		375
interests

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