Nippon Carbon : Summary of Consolidated Financial Results for the Three Months Ended September 30, 2020 (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 Nine Months Ended September 30, 2020 (Based on Japanese GAAP)

				November 10, 2020
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:	Corporate Officer and General Manager of	Koji Imai	TEL [phone]
Business Control Div.
Scheduled date to file Quarterly Securities Report:	November 10, 2020
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 nine months ended September 30, 2020 (from January 1, 2020 to September 30, 2020)

(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	%
Nine months ended September 30, 2020	19,416	(42.4)		2,277	(80.8)		2,854		(75.3)		1,464	(80.7)
Nine months ended September 30, 2019	33,695		2.0		11,847	15.2		11,536		12.2		7,582	15.6
	Earnings per share		Diluted earnings per share
			Yen					Yen
Nine months ended September 30, 2020			132.35					-
Nine months ended September 30, 2019			685.37					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%			Yen
As of September 30, 2020		71,079					50,299				61.3		3,936.34
As of December 31, 2019		77,939					51,654				57.9		4,080.33
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, 2019		-			100.00			-				100.00		200.00
Year ending December 31, 2020		-			100.00			-
Year ending December 31, 2020 (Forecast)													100.00		200.00

3. Forecast of consolidated financial results for the year ending December 31, 2020 (from January 1, 2020 to December 31, 2020)

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	25,800	(42.6)	2,300	(84.5)	3,000	(80.1)	1,600	(83.5)	144.58

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4. Notes

1. Changes in significant subsidiaries during the nine months ended September 30, 2020 (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 September 30, 2020	11,832,504	shares	As of December 31, 2019	11,832,504	shares
Number of treasury shares at the end of the period
	As of September 30, 2020	766,247	shares	As of December 31, 2019	769,438	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended September 30, 2020	11,065,016	shares	Nine months ended September 30, 2019	11,063,368	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2019	As of September 30, 2020
Assets
Current assets
Cash and deposits	17,852	14,864
Notes and accounts receivable - trade	14,010	8,306
Merchandise and finished goods	9,153	10,552
Work in process	4,829	4,532
Raw materials and supplies	4,220	3,584
Other	562	1,898
Allowance for doubtful accounts	(20)	(20)
Total current assets	50,607	43,720
Non-current assets
Property, plant and equipment
Buildings and structures	16,680	17,051
Accumulated depreciation and impairment loss	(9,536)	(9,773)
Buildings and structures, net	7,144	7,277
Machinery and equipment	44,008	45,478
Accumulated depreciation and impairment loss	(37,232)	(37,851)
Machinery and equipment, net	6,775	7,626
Vehicles, tools, furniture and fixtures	3,264	3,345
Accumulated depreciation and impairment loss	(2,708)	(2,841)
Vehicles, tools, furniture and fixtures, net	555	504
Land	3,523	3,522
Construction in progress	821	959
Total property, plant and equipment	18,820	19,890
Intangible assets	160	193
Investments and other assets
Investment securities	6,044	4,734
Deferred tax assets	371	356
Other	1,946	2,186
Allowance for doubtful accounts	(10)	(2)
Total investments and other assets	8,351	7,275
Total non-current assets	27,332	27,359
Total assets		77,939	71,079

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			(Millions of yen)
		As of December 31, 2019	As of September 30, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade	5,821	3,248
Short-term borrowings	8,390	9,330
Accrued expenses	1,118	877
Income taxes payable	1,995	275
Provision for bonuses	214	522
Provision for bonuses for directors (and other officers)	96	16
Provision for plant relocation related expense	317	158
Other	2,770	1,586
Total current liabilities	20,725	16,015
Non-current liabilities
Long-term borrowings	3,637	3,135
Deferred tax liabilities	569	286
Retirement benefit liability	757	750
Provision for retirement benefits for directors (and other	43	52
officers)
Provision for share-based remuneration for directors (and	70	64
other officers)
Provision for environmental measures	28	29
Asset retirement obligations	62	62
Other	390	382
Total non-current liabilities	5,559	4,764
Total liabilities	26,284	20,779
Net assets
Shareholders' equity
Share capital	7,402	7,402
Capital surplus	7,857	7,857
Retained earnings	29,689	28,941
Treasury shares	(1,921)	(1,912)
Total shareholders' equity	43,028	42,289
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,129	1,283
Foreign currency translation adjustment	49	44
Remeasurements of defined benefit plans	(66)	(56)
Total accumulated other comprehensive income	2,112	1,271
Non-controlling interests	6,513	6,739
Total net assets	51,654	50,299
Total liabilities and net assets		77,939	71,079

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