Nippon Carbon : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended June 30, 2021 (Based on Japanese GAAP)

				August 10, 2021
Company name:	Nippon Carbon Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	5302	URL http://www.carbon.co.jp
Representative:	President and Representative Director	Takafumi Miyashita
Inquiries:	General Manager of Business Control Div.	Hiroshi Fujikawa	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 10, 2021
Scheduled date to commence dividend payments:	September 8, 2021
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2021 (from January 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen	%
Six months ended June 30, 2021	14,543		6.1		1,424	(36.7)		1,502		(31.1)		889	(24.3)
Six months ended June 30, 2020	13,710	(42.7)		2,248	(74.7)		2,178		(74.8)		1,174	(79.1)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Six months ended June 30, 2021			80.49					-
Six months ended June 30, 2020			106.18					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%			Yen
As of June 30, 2021		70,373					51,064				62.6		3,989.45
As of December 31, 2020		70,930					50,998				62.2		3,989.30
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen		Yen
Year ended December 31, 2020		-			100.00			-				100.00		200.00
Year ending December 31, 2021		-			100.00
Year ending December 31, 2021 (Forecast)									-				100.00		200.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Full year	30,000	11.9	3,300		9.5	3,600		0.4	2,000	10.5	180.73

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4. Notes

1. Changes in significant subsidiaries during the six months ended June 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2021	11,832,504	shares	As of December 31, 2020	11,832,504	shares
Number of treasury shares at the end of the period
	As of June 30, 2021	788,534	shares	As of December 31, 2020	766,371	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2021	11,053,476	shares	Six months ended June 30, 2020	11,064,445	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2020	As of June 30, 2021
Assets
Current assets
Cash and deposits	14,600	16,435
Notes and accounts receivable - trade	9,228	9,944
Merchandise and finished goods	9,366	8,182
Work in process	4,524	4,757
Raw materials and supplies	3,469	2,943
Income taxes receivable	1,350	2
Other	509	401
Allowance for doubtful accounts	(20)	(21)
Total current assets	43,028	42,644
Non-current assets
Property, plant and equipment
Buildings and structures	17,227	17,325
Accumulated depreciation and impairment loss	(9,806)	(10,043)
Buildings and structures, net	7,420	7,282
Machinery and equipment	45,516	46,936
Accumulated depreciation and impairment loss	(37,778)	(38,520)
Machinery and equipment, net	7,737	8,415
Vehicles, tools, furniture and fixtures	3,293	3,342
Accumulated depreciation and impairment loss	(2,810)	(2,894)
Vehicles, tools, furniture and fixtures, net	483	448
Land	3,524	3,536
Construction in progress	968	126
Total property, plant and equipment	20,135	19,809
Intangible assets	198	279
Investments and other assets
Investment securities	5,026	4,976
Deferred tax assets	334	334
Other	2,209	2,332
Allowance for doubtful accounts	(2)	(2)
Total investments and other assets	7,567	7,640
Total non-current assets	27,902	27,729
Total assets		70,930	70,373

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			(Millions of yen)
		As of December 31, 2020	As of June 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	3,321	3,048
Short-term borrowings	9,425	9,415
Accrued expenses	587	726
Income taxes payable	466	569
Provision for bonuses	146	379
Provision for bonuses for directors (and other officers)	43	21
Provision for loss on order received	13	-
Provision for plant relocation related expense	159	-
Other	1,418	1,274
Total current liabilities	15,580	15,436
Non-current liabilities
Long-term borrowings	2,562	1,937
Deferred tax liabilities	422	566
Retirement benefit liability	771	771
Provision for retirement benefits for directors (and other	52	52
officers)
Provision for share-based remuneration for directors (and	70	77
other officers)
Provision for environmental measures	28	28
Asset retirement obligations	62	62
Other	380	376
Total non-current liabilities	4,351	3,873
Total liabilities	19,931	19,309
Net assets
Shareholders' equity
Share capital	7,402	7,402
Capital surplus	7,857	7,857
Retained earnings	29,287	29,070
Treasury shares	(1,913)	(2,010)
Total shareholders' equity	42,634	42,320
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,542	1,740
Foreign currency translation adjustment	53	75
Remeasurements of defined benefit plans	(84)	(77)
Total accumulated other comprehensive income	1,511	1,738
Non-controlling interests	6,852	7,004
Total net assets	50,998	51,064
Total liabilities and net assets		70,930	70,373

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		June 30, 2020	June 30, 2021
Net sales	13,710	14,543
Cost of sales	9,303	11,093
Gross profit	4,406	3,449
Selling, general and administrative expenses	2,157	2,025
Operating profit	2,248	1,424
Non-operating income
Dividend income	69	51
Foreign exchange gains	-	89
Insurance claim income	68	-
Other	43	75
Total non-operating income	181	216
Non-operating expenses
Interest expenses	35	31
Share of loss of entities accounted for using equity method	81	1
Foreign exchange losses	8	-
Loss on retirement of non-current assets	45	0
Depreciation of inactive non-current assets	72	74
Other	9	29
Total non-operating expenses	252	138
Ordinary profit	2,178	1,502
Extraordinary income
Gain on sales of investment securities	20	179
Total extraordinary income	20	179
Extraordinary losses
Loss on fire	247	-
Factory transfer expenses	-	84
Total extraordinary losses	247	84
Profit before income taxes	1,952	1,596
Income taxes - current	666	568
Income taxes - deferred	(26)	46
Total income taxes	640	614
Profit	1,311	981
Profit attributable to non-controlling interests	137	92
Profit attributable to owners of parent		1,174	889

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