Interim report
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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 Six Months Ended June 30 , 2026 ( Based on Japanese GAAP ) Accounting Standards Fo FASF MEMBERSHIP Company name : Nippon Carbon Co. , Ltd. Stock exchange listing : Tokyo Stock code : URL : Representative : Inquiries : 5302 https://www.carbon.co.jp Representative Director , CEO Takafumi Miyashita Executive Officer , General Manager of Business Control Div . Hiroshi Fujikawa + 81-3-6891-3730 TEL : Scheduled date to file Semi - annual Securities Report : Scheduled date to commence dividend payments : Preparation of supplementary material on financial results : Holding of financial results meeting : August 10 , 2026 September 7 , 2026 No No August 10 , 2026 ( Amounts less than one million yen are rounded down ) 1. Consolidated financial results for the six months ended June 30 , 2026 ( from January 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes ) Profit attributable to Net sales Operating profit Ordinary profit owners of parent Six months ended June 30 , 2026 Six months ended June 30 , 2025 Note : Comprehensive income : For the six months ended June 30 , 2026 : For the six months ended June 30 , 2025 : Earnings per share Millions of yen 19,023 % 18,305 3.9 ( 2.6 ) Millions of yen 2,475 2,609 % Millions of yen % Millions of yen % ( 5.1 ) 2,341 ( 14.0 ) 1,365 ( 40.5 ) ( 23.1 ) 2,722 ( 27.9 ) 2,296 0.2 ¥ 2,728 million [ ( 9.7 ) % ] ¥ 3,020 million [ ( 21.9 ) % ] Diluted earnings per share Yen Yen Six months ended June 30 , 2026 124.23 Six months ended June 30 , 2025 207.74 ( 2 ) Consolidated financial position Total assets Net assets Equity ratio Net assets per share Millions of yen 85,032 85,607 Millions of yen 64,113 63,607 % 64.2 Yen 5,041.20 63.5 4,919.46 Equity As of June 30 , 2026 : As of December 31 , 2025 : ¥ 54,589 million ¥ 54,393 million As of June 30 , 2026 As of December 31 , 2025 Reference :
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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 Fiscal year ended December 31, 2025 – 100.00 – 100.00 200.00 Fiscal year ending December 31, 2026 – 100.00 Fiscal year ending December 31, 2026 (Forecast) – 100.00 200.00 3. Forecast of consolidated financial results for the year ending December 31, 2026 (from January 1, 2026 to December 31, 2026) (Percentages indicate year-on-year changes) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 41,000 8.7 4,300 (10.6) 4,600 (9.9) 2,700 (44.1) 244.19 4. Notes (1) Significant changes in the scope of consolidation during the six months ended June 30, 2026: No (2) Application of special accounting methods for preparing quarterly consolidated financial statements: 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 June 30, 2026: 11,832,504 shares As of December 31, 2025: 11,832,504 shares Number of treasury shares at the end of the period As of June 30, 2026: 1,003,913 shares As of December 31, 2025: 775,616 shares Average number of shares during the period (cum ulative from the beginning of the fiscal year) Six months ended June 30, 2026: 10,994,271 shares Six months ended June 30, 2025: 11,056,671 shares
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1 (1) Consolidated balance sheets (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 15,180 16,305 Notes and accounts receivable - trade, and contract assets 11,371 9,965 Electronically recorded monetary claims - operating 2,254 1,563 Merchandise and finished goods 3,451 2,976 Work in process 12,233 12,494 Raw materials and supplies 3,959 3,735 Income taxes refund receivable 20 – Other 619 1,314 Allowance for doubtful accounts (8) (8) Total current assets 49,082 48,346 Non-current assets Property, plant and equipment Buildings and structures 19,792 19,903 Accumulated depreciation and impairment (12,148) (12,442) Buildings and structures, net 7,644 7,460 Machinery and equipment 55,208 55,668 Accumulated depreciation and impairment (44,392) (45,545) Machinery and equipment, net 10,815 10,122 Vehicles, tools, furniture and fixtures 4,481 4,576 Accumulated depreciation and impairment (3,705) (3,798) Vehicles, tools, furniture and fixtures, net 775 777 Land 3,582 3,587 Construction in progress 432 450 Total property, plant and equipment 23,250 22,399 Intangible assets 137 116 Investments and other assets Investment securities 10,197 11,623 Deferred tax assets 680 707 Other 2,262 1,841 Allowance for doubtful accounts (2) (2) Total investments and other assets 13,137 14,169 Total non-current assets 36,525 36,685 Total assets 85,607 85,032
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2 (Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 2,906 3,021 Electronically recorded obligations - operating 598 399 Short-term borrowings 10,151 10,225 Accrued expenses 718 648 Income taxes payable 1,887 768 Advances received 432 598 Provision for bonuses 222 564 Provision for bonuses for directors (and other officers) 49 26 Provision for environmental measures – 1 Provision for retirement benefits for directors and other officers-CL 10 – Provision for loss on orders received 16 – Other 1,645 1,007 Total current liabilities 18,639 17,263 Non-current liabilities Long-term borrowings 180 140 Deferred tax liabilities 1,124 1,533 Retirement benefit liability 758 746 Provision for retirement benefits for directors (and other officers) 36 35 Provision for share awards for directors (and other officers) 69 76 Provision for environmental measures 1 – Provision for loss on fire 768 765 Asset retirement obligations 62 63 Other 358 293 Total non-current liabilities 3,360 3,654 Total liabilities 22,000 20,918 Net assets Shareholders’ equity Share capital 7,402 7,402 Capital surplus 7,858 7,858 Retained earnings 37,074 37,334 Treasury shares (1,967) (3,047) Total shareholders’ equity 50,367 49,548 Accumulated other comprehensive income Valuation difference on available-for-sale securities 3,022 3,895 Foreign currency translation adjustment 1,028 1,157 Remeasurements of defined benefit plans (25) (11) Total accumulated other comprehensive income 4,026 5,041 Non-controlling interests 9,213 9,524 Total net assets 63,607 64,113 Total liabilities and net assets 85,607 85,032
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3 (2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 18,305 19,023 Cost of sales 13,093 14,027 Gross profit 5,212 4,996 Selling, general and administrative expenses 2,603 2,520 Operating profit 2,609 2,475 Non-operating income Dividend income 210 168 Foreign exchange gains – 115 Share of profit of entities accounted for using equity method 57 – Other 98 121 Total non-operating income 366 406 Non-operating expenses Interest expenses 50 82 Share of loss of entities accounted for using equity method – 38 Foreign exchange losses 73 – Loss on retirement of non-current assets 9 18 Depreciation of inactive non-current assets 81 – Inactive facility expenses – 324 Other 36 76 Total non-operating expenses 253 540 Ordinary profit 2,722 2,341 Extraordinary income Gain on sale of investment securities 1,052 – Total extraordinary income 1,052 – Profit before income taxes 3,775 2,341 Income taxes - current 1,248 691 Income taxes - deferred (117) (19) Total income taxes 1,131 671 Profit 2,643 1,669 Profit attributable to non-controlling interests 346 303 Profit attributable to owners of parent 2,296 1,365
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4 Consolidated statements of comprehensive income (cumulative) (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 2,643 1,669 Other comprehensive income Valuation difference on available-for-sale securities (98) 892 Foreign currency translation adjustment 47 73 Remeasurements of defined benefit plans, net of tax (29) 13 Share of other comprehensive income of entities accounted for using equity method 457 78 Total other comprehensive income 376 1,058 Comprehensive income 3,020 2,728 Comprehensive income attributable to Comprehensive income attributable to owners of parent 2,652 2,380 Comprehensive income attributable to non-controlling interests 368 347
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5 (3) Consolidated statements of cash flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash flows from operating activities Profit before income taxes 3,775 2,341 Depreciation 1,692 1,692 Increase (decrease) in retirement benefit liability 0 (4) Increase (decrease) in provision for retirement benefits for directors (and other officers) (3) (11) Interest and dividend income (214) (174) Interest expenses 50 82 Share of loss (profit) of entities accounted for using equity method (57) 38 Loss (gain) on sale of non-current assets (0) (8) Loss (gain) on sale of investment securities (1,052) – Loss on retirement of non-current assets 9 21 Decrease (increase) in trade receivables 759 2,131 Decrease (increase) in inventories (950) 485 Decrease (increase) in accounts receivable - other 243 174 Increase (decrease) in trade payables 29 (85) Other, net 297 (881) Subtotal 4,580 5,801 Interest and dividends received 214 174 Interest paid (51) (83) Income taxes paid (1,022) (1,727) Proceeds from insurance income 48 513 Payments for loss on fire – (3) Net cash provided by (used in) operating activities 3,770 4,674 Cash flows from investing activities Purchase of property, plant and equipment (3,112) (1,386) Purchase of intangible assets (28) (9) Purchase of investment securities (185) (2) Proceeds from sale of property, plant and equipment 2 5 Proceeds from sale of investment securities 409 – Net cash provided by (used in) investing activities (2,914) (1,392) Cash flows from financing activities Net increase (decrease) in short-term borrowings 500 100 Repayments of long-term borrowings (93) (66) Net decrease (increase) in treasury shares 3 (1,079) Dividends paid (1,094) (1,102) Dividends paid to non-controlling interests (175) (36) Other, net (5) (1) Net cash provided by (used in) financing activities (864) (2,187) Effect of exchange rate change on cash and cash equivalents (3) 29 Net increase (decrease) in cash and cash equivalents (12) 1,124 Cash and cash equivalents at beginning of period 12,154 15,035 Cash and cash equivalents at end of period 12,141 16,160