Nippon Carbon : Summary of Consolidated Financial Results for the Three Months Ended March 31, 2019 (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, 2019 (Based on Japanese GAAP)

				May 10, 2019
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:	Corporate Officer and General Manager of	Koji Imai	TEL [phone]
Business Control Div.
Scheduled date to file Quarterly Securities Report:	May 10, 2019
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, 2019 (from January 1, 2019 to March 31, 2019)

(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, 2019	12,103		42.6		5,095	168.5		4,983		161.4		3,266	168.1
Three months ended March 31, 2018	8,489		48.2		1,897	-		1,906			-		1,218	-
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended March 31, 2019			295.26					-
Three months ended March 31, 2018			110.32					-
(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, 2019		72,983					45,474				53.8		3,547.87
As of December 31, 2018		73,598					42,734				49.7		3,303.04
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, 2018		-			50.00			-				50.00		100.00
Year ending December 31, 2019		-
Year ending December 31, 2019 (Forecast)					100.00			-				100.00		200.00

3. Forecast of consolidated financial results for the year ending December 31, 2019 (from January 1, 2019 to December 31, 2019)

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
28,100	41.9	10,500	87.8	10,400	83.1	7,000	87.7	632.78
June 30, 2019
Full year	56,500	17.7	19,700	20.1	19,600	18.7	13,100	27.3	1,184.21

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4.Notes

(1)Changes in significant subsidiaries during the three months ended March 31, 2019 (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:	Yes
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, 2019	11,832,504	shares	As of December 31, 2018	11,832,504	shares
Number of treasury shares at the end of the period
	As of March 31, 2019	768,873	shares	As of December 31, 2018	770,233	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended March 31, 2019	11,062,601	shares	Three months ended March 31, 2018	11,043,444	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2018	As of March 31, 2019
Assets
Current assets
Cash and deposits	19,747	17,198
Notes and accounts receivable - trade	15,270	14,662
Merchandise and finished goods	6,889	8,228
Work in process	4,351	4,615
Raw materials and supplies	3,255	3,956
Other	415	374
Allowance for doubtful accounts	(20)	(20)
Total current assets	49,908	49,017
Non-current assets
Property, plant and equipment
Buildings and structures	15,502	15,663
Accumulated depreciation and impairment loss	(9,300)	(9,357)
Buildings and structures, net	6,202	6,305
Machinery and equipment	41,826	42,888
Accumulated depreciation and impairment loss	(36,859)	(37,105)
Machinery and equipment, net	4,966	5,783
Vehicles, tools, furniture and fixtures	3,084	3,125
Accumulated depreciation and impairment loss	(2,665)	(2,706)
Vehicles, tools, furniture and fixtures, net	418	419
Land	3,516	3,516
Construction in progress	1,087	501
Total property, plant and equipment	16,192	16,526
Intangible assets	202	190
Investments and other assets
Investment securities	5,390	5,353
Deferred tax assets	402	401
Other	1,510	1,502
Allowance for doubtful accounts	(8)	(8)
Total investments and other assets	7,295	7,248
Total non-current assets	23,689	23,965
Total assets		73,598	72,983

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			(Millions of yen)
		As of December 31, 2018	As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade	7,392	7,371
Short-term loans payable	8,381	8,410
Income taxes payable	4,841	1,713
Provision for bonuses	193	442
Provision for directors' bonuses	125	28
Provision for plant relocation related expense	539	539
Other	2,872	2,549
Total current liabilities	24,346	21,055
Non-current liabilities
Long-term loans payable	4,867	4,820
Deferred tax liabilities	229	251
Net defined benefit liability	847	804
Provision for directors' retirement benefits	39	39
Provision For Management Board Incentive Plan Trust	50	51
Provision for environmental measures	28	28
Asset retirement obligations	62	62
Other	391	396
Total non-current liabilities	6,517	6,453
Total liabilities	30,863	27,509
Net assets
Shareholders' equity
Capital stock	7,402	7,402
Capital surplus	7,857	7,857
Retained earnings	21,646	24,359
Treasury shares	(1,924)	(1,920)
Total shareholders' equity	34,982	37,699
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,584	1,570
Deferred gains or losses on hedges	6	3
Foreign currency translation adjustment	42	39
Remeasurements of defined benefit plans	(77)	(60)
Total accumulated other comprehensive income	1,556	1,552
Non-controlling interests	6,195	6,221
Total net assets	42,734	45,474
Total liabilities and net assets		73,598	72,983

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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, 2018	March 31, 2019
Net sales	8,489	12,103
Cost of sales	5,467	5,659
Gross profit	3,022	6,444
Selling, general and administrative expenses	1,124	1,348
Operating profit	1,897	5,095
Non-operating income
Rent income	10	5
Share of profit of entities accounted for using equity method	17	-
Other	40	47
Total non-operating income	68	53
Non-operating expenses
Interest expenses	24	23
Foreign exchange losses	8	9
Share of loss of entities accounted for using equity method	-	23
Loss on retirement of non-current assets	-	53
Other	26	56
Total non-operating expenses	59	165
Ordinary profit	1,906	4,983
Profit before income taxes	1,906	4,983
Income taxes - current	283	1,532
Income taxes - deferred	241	20
Total income taxes	524	1,552
Profit	1,381	3,431
Profit attributable to non-controlling interests	163	165
Profit attributable to owners of parent		1,218	3,266

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