Nippon Carbon : Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2017 (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, 2017 (Based on Japanese GAAP)

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 Corporate Officer and General Manager of

October 30, 2017

Inquiries:

Business Control Div.

Koji Imai TEL [phone]

Scheduled date to file Quarterly Securities Report: November 10, 2017

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, 2017 (from January 1, 2017 to September 30, 2017)

2. Consolidated operating results (cumulative) Percentages indicate year-on-year changes

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent
   Nine months ended September 30, 2017 Nine months ended September 30, 2016	Millions of yen 19,351 16,503	% 17.3 (22.5)	Millions of yen 1,373 (972)	% - -	Millions of yen 1,444 (1,049)	% - -	Millions of yen 995 (1,286)	% - -

   Earnings per share	Diluted earnings per share
   Nine months ended September 30, 2017 Nine months ended September 30, 2016	Yen 89.91 (116.04)	Yen - -

3. Consolidated financial position

   Total assets	Net assets	Equity ratio	Net assets per share
   As of September 30, 2017	Millions of yen	Millions of yen	%	Yen
   	54,907	31,289	46.8	2,328.15
   As of December 31, 2016	53,895	30,810	47.2	2,293.67

4. Cash dividends

   Annual dividends per share
   1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
   Year ended December 31, 2016	Yen	Yen	Yen	Yen	Yen
   	-	0.00	-	5.00	5.00
   Year ending December 31, 2017	-	0.00	-
   Year ending December 31, 2017 (Forecast)	50.00	-

5. Forecast of consolidated financial results for the year ending December 31, 2017 (from January 1, 2017 to December 31, 2017)

   Percentages indicate year-on-year changes

   Net sales		Operating income		Ordinary income		Profit attributable to owners of parent		Earnings per share
   Full year	Millions of yen 26,700	% 16.6	Millions of yen 1,300	% -	Millions of yen 1,400	% -	Millions of yen 1,200	% -	Yen 108.66

6. Notes

7. ) Changes in significant subsidiaries during the nine months ended September 30, 2017

   No

   (changes in specified subsidiaries resulting in the change in scope of consolidation):

8. Application of special accounting methods for preparing quarterly consolidated financial statements: No

9. ) 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

10. Number of issued shares (common shares)

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

    As of September 30, 2017 11,832,504 shares As of December 31, 2016 11,832,504 shares Number of treasury shares at the end of the period

    As of September 30, 2017 788,501 shares As of December 31, 2016 741,944 shares Average number of shares during the period (cumulative from the beginning of the fiscal year)

    Nine months ended September 30, 2017 11,067,416 shares Nine months ended September 30, 2016 11,090,859 shares

    Quarterly consolidated financial statements Consolidated balance sheets

    Assets

    (Millions of yen) As of December 31, 2016 As of September 30, 2017

    Current assets Cash and deposits	10,553	11,656
    Notes and accounts receivable - trade	6,991	8,853
    Merchandise and finished goods	5,852	5,636
    Work in process	3,761	3,736
    Raw materials and supplies	1,757	1,593
    Other	1,487	499
    Allowance for doubtful accounts	(4)	(1)
    Total current assets	30,400	31,975
    Non-current assets
    Property, plant and equipment
    Buildings and structures	14,249	15,530
    Accumulated depreciation and impairment loss	(9,037)	(9,228)
    Buildings and structures, net	5,212	6,302
    Machinery and equipment	38,444	41,497
    Accumulated depreciation and impairment loss	(35,835)	(36,422)
    Machinery and equipment, net	2,609	5,074
    Vehicles, tools, furniture and fixtures	2,803	2,884
    Accumulated depreciation and impairment loss	(2,575)	(2,631)
    Vehicles, tools, furniture and fixtures, net	228	252
    Land	3,514	3,518
    Construction in progress	3,925	3
    Total property, plant and equipment	15,490	15,151
    Intangible assets	152	168
    Investments and other assets
    Investment securities	5,904	5,781
    Other	1,982	1,848
    Allowance for doubtful accounts	(36)	(16)
    Total investments and other assets	7,851	7,612
    Total non-current assets	23,495	22,932
    Total assets	53,895	54,907

    Liabilities

    (Millions of yen) As of December 31, 2016 As of September 30, 2017

    Current liabilities Notes and accounts payable - trade	3,124	3,932
    Short-term loans payable	7,843	8,134
    Income taxes payable	177	237
    Provision for bonuses	111	264
    Provision for directors' bonuses	13	14
    Other	1,919	1,313
    Total current liabilities	13,189	13,896
    Non-current liabilities
    Long-term loans payable	7,095	7,050
    Net defined benefit liability	1,256	1,079
    Provision for directors' retirement benefits	80	85
    Provision For Management Board Incentive Plan Trust	-	15
    Provision for environmental measures	22	20
    Asset retirement obligations	73	73
    Other	1,366	1,396
    Total non-current liabilities	9,895	9,721
    Total liabilities	23,085	23,618

    Net assets

    Shareholders' equity Capital stock	7,402	7,402
    Capital surplus	7,800	7,800
    Retained earnings	10,226	10,672
    Treasury shares	(1,825)	(1,966)
    Total shareholders' equity	23,604	23,909
    Accumulated other comprehensive income Valuation difference on available-for-sale securities	1,904	1,894
    Foreign currency translation adjustment	16	(3)
    Remeasurements of defined benefit plans	(87)	(87)
    Total accumulated other comprehensive income	1,833	1,802
    Non-controlling interests	5,372	5,577
    Total net assets	30,810	31,289
    Total liabilities and net assets	53,895	54,907