日本カーボン（5302） – (Delayed)Summary of Consolidated Financial Results for the Year Ended December 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 Year Ended December 31, 2021 (Based on Japanese GAAP) Company name: Stock exchange listing: Tokyo Nippon Carbon Co., Ltd. Stock code: Representative: 5302 Representative Director, CEO URL https://www.carbon.co.jp Takafumi Miyashita Inquiries: Scheduled date of ordinary general meeting of shareholders: General Manager of Business Control Dept. Hiroshi Fujikawa March 29, 2022 Scheduled date to file Securities Report: Scheduled date to commence dividend payments: March 29, 2022 March 30, 2022 February 10, 2022 TEL 03-6891-3730 Preparation of supplementary material on financial results: Holding of financial results meeting: 1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021) No No (Amounts less than one million yen are rounded down) (1) Consolidated operating results Net sales Operating profit Ordinary profit Percentages indicate year-on-year changes Profit attributable to owners of parent Year ended December 31, 2021 Year ended December 31, 2020 Millions of yen 31,578 26,802 % Millions of yen 3,706 3,015 17.8 (40.3) % Millions of yen 4,434 3,587 22.9 (79.7) % Millions of yen 2,729 1,810 23.6 (76.2) % 50.7 (81.3) Note: Comprehensive income Year ended December 31, 2021: Year ended December 31, 2020: ¥3,532 million ¥1,681 million [110.1%] [(84.3)%] Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Yen 247.00 163.64 Yen – – % 6.1 4.1 % 6.2 4.8 % 11.7 11.3 Year ended December 31, 2021 Year ended December 31, 2020 Reference: Share of profit (loss) of entities accounted for using equity method Year ended December 31, 2021: Year ended December 31, 2020: ¥42 million ¥(113) million (2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen 72,692 70,930 Millions of yen 52,257 50,998 % 61.9 62.2 Yen 4,073.56 3,989.30 As of December 31, 2021 As of December 31, 2020 Reference: Equity (3) Consolidated cash flows As of December 31, 2021: As of December 31, 2020: ¥44,987 million ¥44,146 million Year ended December 31, 2021 Year ended December 31, 2020 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 7,551 3,853 Millions of yen △608 (4,716) Millions of yen (3,762) (2,389) Millions of yen 17,720 14,455 1 2. Cash dividends Year ended December 31, 2020 Year ended December 31, 2021 Year ending December 31, 2022 (Forecast) Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen – – – Yen 100.00 100.00 100.00 Yen Millions of yen Yen – – – Yen 100.00 100.00 200.00 200.00 100.00 200.00 2,213 2,208 % 122.2 81.0 % 5.0 5.0 3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022) Net sales Operating profit Ordinary profit Millions of yen % Millions of yen % Millions of yen % Millions of yen % 17,200 18.3 2,300 61.5 2,400 59.8 1,500 68.6 35,800 13.4 4,900 32.2 5,000 12.8 3,100 13.6 Yen 135.76 280.57 Percentages indicate year-on-year changes Profit attributable to owners of parent Earnings per share Six months ending June 30, 2022 Full year 4. Notes (1) Changes in significant subsidiaries during the year ended December 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) 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: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: No No No No No (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) As of December 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 Average number of shares during the period As of December 31, 2021 788,766 shares As of December 31, 2020 766,371 shares Year ended December 31, 2021 11,049,029 shares Year ended December 31, 2020 11,065,281 shares * Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation. * Proper use of forecasts of financial results, and other special matters Forward-looking statements provided in this document, including financial forecasts, are based on the information currently available to the Company and certain assumptions considered reasonable. Actual financial results may differ substantially due to various factors. 2 Consolidated financial statements Consolidated balance sheets As of December 31, 2020 As of December 31, 2021 (Millions of yen) 14,600 9,228 9,366 4,524 3,469 1,350 509 (20) 43,028 17,227 (9,806) 7,420 45,516 (37,778) 7,737 3,293 (2,810) 483 3,524 968 20,135 198 5,026 334 2,209 (2) 7,567 27,902 70,930 17,865 11,592 7,896 4,595 2,886 – 585 (22) 45,399 17,407 (10,230) 7,177 47,249 (39,053) 8,195 3,392 (2,927) 464 3,544 132 19,515 264 5,172 378 1,964 (2) 7,513 27,292 72,692 Assets Current assets Cash and deposits Notes and accounts receivable – trade Merchandise and finished goods Work in process Raw materials and supplies Income taxes receivable Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation and impairment Buildings and structures, net Machinery and equipment Accumulated depreciation and impairment Machinery and equipment, net Vehicles, tools, furniture and fixtures Accumulated depreciation and impairment Vehicles, tools, furniture and fixtures, net Land Construction in progress Total property, plant and equipment Intangible assets Investments and other assets Investment securities Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets – 3 – As of December 31, 2020 As of December 31, 2021 (Millions of yen) 3,321 9,425 587 466 146 43 13 159 1,418 15,580 2,562 422 771 52 70 28 62 380 4,351 19,931 7,402 7,857 29,287 (1,913) 42,634 1,542 53 (84) 1,511 6,852 50,998 70,930 3,900 9,180 516 1,038 208 59 – – 2,123 17,027 1,387 633 776 55 89 28 62 373 3,407 20,434 7,402 7,857 29,805 (2,011) 43,054 1,868 124 (59) 1,932 7,270 52,257 72,692 Liabilities Current liabilities Notes and accounts payable – trade Short-term borrowings Accrued expenses Income taxes payable Provision for bonuses Provision for bonuses for directors (and other officers) Provision for loss on order received Provision for plant relocation related expense Other Total current liabilities Non-current liabilities Long-term borrowings Deferred tax liabilities Retirement benefit liability Provision for retirement benefits for directors (and other officers) Provision for share awards for directors (and other officers) Provision for environmental measures Asset retirement obligations Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets – 4 – Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income (Millions of yen) Fiscal year ended December 31, 2020 Fiscal year ended December 31, 2021 26,802 19,673 7,129 4,113 3,015 1 119 31 – 2 150 796 72 1,174 68 181 113 148 48 42 602 3,587 62 62 249 139 389 3,260 797 182 980 2,280 469 1,810 31,578 23,539 8,038 4,332 3,706 4 99 146 42 2 366 208 221 1,092 61 20 – 149 59 72 363 4,434 179 179 97 84 182 4,431 1,362 7 1,370 3,060 331 2,729 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Foreign exchange gains Share of profit of entities accounted for using equity method Subsidy income Compensation income Insurance claim income Other Total non-operating income Non-operating expenses Interest expenses Loss on retirement of non-current assets Share of loss of entities accounted for using equity method Depreciation of inactive non-current assets Loss on disaster Other Total non-operating expenses Ordinary profit Extraordinary income Gain on sale of investment securities Total extraordinary income Extraordinary losses Loss on fire Plant relocation related expense Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent – 5 – Consolidated statements of comprehensive income Fiscal year ended December 31, 2020 Fiscal year ended December 31, 2021 (Millions of yen) 2,280 (590) 9 (17) (599) 1,681 1,209 471 3,060 332 114 24 471 3,532 3,157 375 Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests – 6 – Consolidated statements of changes in equity Fiscal year ended December 31, 2020 (Millions of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares 7,402 7,857 29,689 (1,921) 43,028 Total shareholders’ equity (2) 11 (2,212) 1,810 (2) 11 – (2,212) 1,810 Balance at end of period 7,402 7,857 29,287 (1,913) 42,634 – – (402) 8 (393) Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets 2,129 49 (66) 2,112 6,513 51,654 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period (587) (587) 1,542 3 3 53 (17) (17) (84) – – – – (601) (601) 339 339 (2,212) 1,810 (2) 11 (261) (655) Balance at end of period 1,511 6,852 50,998 – 7 – Fiscal year ended December 31, 2021 (Millions of yen) Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares 7,402 7,857 29,287 (1,913) 42,634 Total shareholders’ equity (2,211) 2,729 – – (98) (98) (2,211) 2,729 Balance at end of period 7,402 7,857 29,805 (2,011) 43,054 – 518 (98) 419 Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Non-controlling interests Total net assets 1,542 53 (84) 1,511 6,852 50,998 Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at beginning of period Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period 325 325 1,868 – 71 71 124 24 24 – – – – 421 421 417 417 (2,211) 2,729 (98) – 839 1,259 52,257 Balance at end of period (59) 1,932 7,270 – 8 – Consolidated statements of cash flows Fiscal year ended December 31, 2020 Fiscal year ended December 31, 2021 (Millions of yen) 3,260 2,193 (12) 9 (158) (119) (796) (150) 68 113 (62) 249 181 4,786 849 (2,500) (627) (85) 53 (750) 6,500 120 (68) 21 (3,667) 796 150 3,853 (4,763) (110) (5) 163 – (0) (4,716) 1,000 200 (1,240) (2) (2,214) (132) (2,389) 1 (3,251) 17,707 14,455 4,431 2,385 29 2 (159) (103) (208) (366) 61 (42) (179) 97 20 (2,302) 2,050 535 (71) (19) (90) 362 6,434 103 (59) 1,340 (842) 208 366 7,551 (1,528) (117) (6) 544 500 – (608) (250) 100 (1,270) (98) (2,206) (37) (3,762) 84 3,264 14,455 17,720 Cash flows from operating activities Profit before income taxes Depreciation Increase (decrease) in retirement benefit liability Increase (decrease) in provision for retirement benefits for directors (and other officers) Increase (decrease) in provision for plant relocation related expense Interest and dividend income Insurance claim income Compensation income Interest expenses Share of loss (profit) of entities accounted for using equity method Loss (gain) on sale of investment securities Loss on fire Loss on retirement of non-current assets Decrease (increase) in trade receivables Decrease (increase) in inventories Increase (decrease) in trade payables Increase (decrease) in accrued expenses Increase (decrease) in accounts payable – other Decrease (increase) in accounts receivable – other Other, net Subtotal Interest and dividends received Interest paid Income taxes refund Income taxes paid Proceeds from insurance income Proceeds from compensation Net cash provided by (used in) operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Decrease (increase) in time deposits Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Net decrease (increase) in treasury shares Dividends paid Dividends paid to non-controlling interests Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period – 9 –