Nippon Carbon : Summary of Consolidated Financial Results for the Three Months Ended March 31, 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 Three Months Ended March 31, 2021 (Based on Japanese GAAP)

				May 10, 2021
Company name:	Nippon Carbon Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	5302	URL https://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:	May 10, 2021
Scheduled date to commence dividend payments:	-
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 three months ended March 31, 2021 (from January 1, 2021 to March 31, 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	%
Three months ended March 31, 2021	6,077		(2.7)		415	(63.0)		368		(66.8)		226	(53.3)
Three months ended March 31, 2020	6,249	(48.4)		1,120	(78.0)		1,108		(77.8)		485	(85.1)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended March 31, 2021			20.50					-
Three months ended March 31, 2020			43.88					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%			Yen
As of March 31, 2021		70,172					50,317				61.9		3,936.19
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		-
Year ending December 31, 2021 (Forecast)					100.00			-				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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
14,000	2.1	1,100	(51.1)	1,200	(45.4)	700	(40.4)	63.26
June 30, 2021
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 three months ended March 31, 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 March 31, 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 March 31, 2021	788,455	shares	As of December 31, 2020	766,371	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended March 31, 2021	11,060,584	shares	Three months ended March 31, 2020	11,062,904	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	14,600	14,835
Notes and accounts receivable - trade	9,228	8,932
Merchandise and finished goods	9,366	9,014
Work in process	4,524	4,742
Raw materials and supplies	3,469	3,196
Income taxes receivable	1,350	1,335
Other	509	184
Allowance for doubtful accounts	(20)	(21)
Total current assets	43,028	42,220
Non-current assets
Property, plant and equipment
Buildings and structures	17,227	17,270
Accumulated depreciation and impairment loss	(9,806)	(9,931)
Buildings and structures, net	7,420	7,338
Machinery and equipment	45,516	46,633
Accumulated depreciation and impairment loss	(37,778)	(38,135)
Machinery and equipment, net	7,737	8,497
Vehicles, tools, furniture and fixtures	3,293	3,316
Accumulated depreciation and impairment loss	(2,810)	(2,852)
Vehicles, tools, furniture and fixtures, net	483	464
Land	3,524	3,533
Construction in progress	968	307
Total property, plant and equipment	20,135	20,142
Intangible assets	198	208
Investments and other assets
Investment securities	5,026	4,978
Deferred tax assets	334	341
Other	2,209	2,284
Allowance for doubtful accounts	(2)	(3)
Total investments and other assets	7,567	7,601
Total non-current assets	27,902	27,952
Total assets		70,930	70,172

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			(Millions of yen)
		As of December 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	3,321	3,094
Short-term borrowings	9,425	9,420
Accrued expenses	587	556
Income taxes payable	466	278
Provision for bonuses	146	274
Provision for bonuses for directors (and other officers)	43	24
Provision for loss on order received	13	-
Provision for plant relocation related expense	159	249
Other	1,418	1,602
Total current liabilities	15,580	15,501
Non-current liabilities
Long-term borrowings	2,562	2,510
Deferred tax liabilities	422	489
Retirement benefit liability	771	762
Provision for retirement benefits for directors (and other	52	48
officers)
Provision for share-based remuneration for directors (and	70	71
other officers)
Provision for environmental measures	28	28
Asset retirement obligations	62	62
Other	380	380
Total non-current liabilities	4,351	4,353
Total liabilities	19,931	19,855
Net assets
Shareholders' equity
Share capital	7,402	7,402
Capital surplus	7,857	7,857
Retained earnings	29,287	28,407
Treasury shares	(1,913)	(2,010)
Total shareholders' equity	42,634	41,657
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,542	1,755
Foreign currency translation adjustment	53	139
Remeasurements of defined benefit plans	(84)	(80)
Total accumulated other comprehensive income	1,511	1,813
Non-controlling interests	6,852	6,846
Total net assets	50,998	50,317
Total liabilities and net assets		70,930	70,172

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		March 31, 2020	March 31, 2021
Net sales	6,249	6,077
Cost of sales	4,093	4,689
Gross profit	2,156	1,387
Selling, general and administrative expenses	1,035	972
Operating profit	1,120	415
Non-operating income
Rental income	6	7
Insurance claim income	63	-
Other	41	34
Total non-operating income	111	42
Non-operating expenses
Interest expenses	17	18
Loss on retirement of non-current assets	5	0
Depreciation of inactive non-current assets	36	37
Foreign exchange losses	16	0
Share of loss of entities accounted for using equity method	31	24
Other	16	6
Total non-operating expenses	123	89
Ordinary profit	1,108	368
Extraordinary income
Gain on sales of investment securities	-	179
Total extraordinary income	-	179
Extraordinary losses
Loss on fire	247	-
Factory relocation related costs	-	90
Total extraordinary losses	247	90
Profit before income taxes	861	457
Income taxes - current	319	250
Income taxes - deferred	(17)	(11)
Total income taxes	302	239
Profit	559	218
Profit (loss) attributable to non-controlling interests	74	(8)
Profit attributable to owners of parent		485	226

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