Translation

Member of the Financial Accounting Standards Foundation

October 13, 2010

Consolidated Financial Results for the Three Months Ended August 31, 2010
[Japanese GAAP]
Listed company name:
Stock exchange listing:Stock code:
Location of headquarters:
Website:Representative:
Contact:
TEL:
Scheduled date for submissionof quarterly report:
Scheduled date for dividend payment:
Supplementary materials for quarterly
financial summaries:
Quarterly financial results briefing:

Toyo Tanso Co., Ltd.
Tokyo Stock Exchange, 1st Section
5310
Osaka, Japan
http://www.toyotanso.co.jp
Naotaka Kondo, President & Chief Operating Officer
Toshimi Boki, Executive Officer, General Manager,
Finance and Accounting Department
81-6-6451-2114 (from overseas)
October 15, 2010
Yes
No

1. Consolidated financial results for the three months ended August 31, 2010
(From June 1, 2010 to August 31, 2010)(1) Operating results (cumulative total)(Millions of yen, rounded down)
Percentages indicate changes from the same period in the previous fiscal year.

Net sales

Operating profit

Recurring profit%
Three months ended
August 31, 2010
Three months ended
August 31, 2009

%

%

%

9,054

51.3

1,656

244.0

1,426

231.8

1,073

611.2

5,986

(31.7)

481(73.4)

429(77.0)

150(87.6)Net income per share

Three months ended
August 31, 2010
Three months ended
August 31, 2009

Net income

Diluted net income
per share

yen

yen

51.78

-

7.28

-

(2) Financial position(Millions of yen, rounded down)
Percentages indicate changes from the same period in the previous fiscal year.
Total assets

EquityEquity ratio

Equity per share%yen

As of August 31, 2010

62,23449,06677.1

2,314.37

As of May 31, 2010

61,786

48,96077.4

2,306.55

Reference: Shareholders’ equity
August 31, 2010
May 31, 2010

47,987 million yen
47,825 million yen

2. Dividends
Dividends per share (yen)Second quarter
end

First quarter end-

Third quarter end

Year-end--(Actual)Year ending May 31, 2011
(Forecast)
Note: Revision of projected dividends in the quarter under review: None-

Year ended May 31, 2010
Year ending May 31, 2011

Total (Full year)

20.00

20.00
-

-

22.00

22.00

3. Consolidated results forecast for the fiscal year ending May 31, 2011
(From June 1, 2010 to May 31, 2011)

Net sales

Operating profit%(Millions of yen, rounded down)
Percentages indicate changes on a year-on-year basis.
Net income
Recurring profit
Net income
per share%%

Interim period(cumulative)

18,000

42.3

2,700

230.5

2,500

278.0

Full year

34,500

23.5

4,000

77.5

3,800

83.5

%

yen

1,800

386.6

86.81

2,600

80.3

125.40Note: Revisions of consolidated forecast during the period: Yes
The consolidated forecasts for the second quarter (cumulative) and for the full financial year have been revised on October 13, 2010.
For details, please refer to the “Notice Concerning the Revision of Consolidated Forecast,” issued on October 13, 2010.

4. Others (For details, please refer to “Others” on page 3 of the Appendix.)(1) Changes in significant subsidiaries during the quarter under review: None
New subsidiaries: ___ (name of company(ies))
Excluded subsidiaries: ___ (name of company(ies))(Note) Refers to changes in specified subsidiaries accompanying changes in scope of consolidation
during the accounting period of the quarter under review(2) Adoption of simple accounting methods and specific accounting methods: Yes(Note) Refers to the adoption of simple accounting methods and specific accounting methods for the
preparation of quarterly consolidated financial statements(3) Changes in accounting principles, procedures and presentation
i. Changes due to amendment of accounting standards: Yes
ii. Changes due to other reasons: None
(Note) Refers to changes in accounting principles, procedures and presentation of quarterly
consolidated financial statements described in “Changes in the Significant Items That Form theBasis of Preparations for Consolidated Quarterly Financial Statements”(4) Number of shares outstanding (common stock)i. Number of shares outstanding and issued at the end of period (including treasury stock)
As of August 31, 2010
20,750,688 shares
As of May 31, 2010
20,750,688 shares
ii. Number of treasury stock at the end of period
As of August 31, 2010
16,215 shares
As of May 31, 2010
16,215 sharesiii. Average number of shares during the period (quarterly cumulative total)
First quarter ended August 31, 2010
20,734,473 sharesFirst quarter ended August 31, 2009
20,734,543 shares

* Implementation status of quarterly review proceduresThis quarterly financial results report is not subject to the quarterly review procedures stipulated by the
Financial Instruments and Exchange Act. The review of quarterly consolidated financial statements has
been completed at the time of release of this report.
* Disclaimer regarding appropriate use of forecasts and related points of note
The forecasts and forward-looking statements contained in this report are based on information currently
available and on certain assumptions deemed rational as of the date of release. Accordingly, actual results
may differ significantly from these forecasts due to various factors. For more information on thepreconditions of the forecasts and on precautionary notes concerning the usage of these forecasts, pleaserefer to “Qualitative Information Regarding Consolidated Results Forecast” on page 2 of the Attached
Documents.

○Attached Documents
1. Qualitative Information Regarding Consolidated Results for the Quarter under Review··············· 2(1) Qualitative Information Regarding Consolidated Operating Results ··········································· 2(2) Qualitative Information Regarding Consolidated Financial Position············································ 2(3) Qualitative Information Regarding Consolidated Results Forecast ·············································· 3
2. Others ·························································································································································· 3(1) Changes in significant subsidiaries····································································································· 3(2) Simple accounting methods and specific accounting methods ························································ 3(3) Changes in accounting policies, procedures, and methods of presentation ··································· 3(4) Key event regarding the premise of a going concern········································································ 4
3. Consolidated Quarterly Financial Statements········································································· 5(1) Consolidated quarterly balance sheets······························································································· 5(2) Consolidated quarterly statements of income ··················································································· 7(3) Consolidated quarterly statements of cash flows·············································································· 8(4) Notes regarding the premise of a going concern ··············································································· 9(5) Segment information ···························································································································· 9(6) Notes if the amount of shareholders’ equity has changed significantly········································ 10
4. Supplementary Information···································································································· 11(1) Orders and sales by product category·······························································································11(2) Overview ·············································································································································· 12

11. Qualitative Information Regarding Consolidated Results for the Quarter under Review(1) Qualitative Information Regarding Consolidated Operating Results
During the first quarter under review, the global economy gradually continued on its road to recovery evenwhile facing credit insecurity issues in Europe and concerns of an economic standstill in Western countries,
partly owing to economic growth in emerging countries including Asia and the effects of economic stimulus
measures in each country. The Japanese economy also maintained a general recovery trend, showing
improvement in exports and production and advancement in stock adjustments, in spite of elements ofinsecurity that have persisted, such as the rising yen and the stagnant employment situation.
Amid these circumstances, the Toyo Tanso Group concentrated its efforts on improving and expanding its
business, by actively absorbing rapidly increasing demands mainly in the environment and energy sectors
and further accelerating global expansion particularly in Asia.
As a result, the Group’s business performance improved dramatically during the first quarter under review,
regardless of the impact of the rising yen or the increased burden of depreciation expenses. Net sales totaled
9,054 million yen (up 51.3% from the same term last year), operating profit 1,656 million yen (up 244.0%),
and recurring profit 1,426 million yen (up 231.8%). Net income for the quarter was 1,073 million yen (up611.2%).
The overall performance of each business segment was as follows. (Please refer to “Supplementary
Information” for an overview of each product category.)Japan
Boosted by signs of economic recovery, business performance in Japan turned strongly upward on thewhole. In addition to seeing a further recovery in demand for all products, expanded sales were observed in
SiC (silicon carbide)-coated graphite products and other high-value-added products and products for new
applications and purposes. As a result, net sales for the quarter in Japan were 4,997 million yen and operating
profit was 856 million yen.
United States
Business performance in the United States shifted to a recovery trend mainly in semiconductor and solar
cell products, but growth was limited by the impact of the rising yen and other adverse factors. As a result,net sales for the quarter in the United States were 751 million yen and operating loss came to 13 million yen.
EuropeIn response to signs of economic recovery in Europe, gradual improvement was seen mainly in solar celland brush products. As a result, net sales for the quarter in Europe were 689 million yen and operating profit
was 81 million yen.
Asia
Owing to robust growth in demand particularly for solar cell and compound semiconductor products,
products for all related applications enjoyed a dramatic expansion in sales. As a result, net sales for thequarter in Asia were 2,615 million yen and operating profit was 568 million yen.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of August 31, 2010 increased by 448 million yen from the end of the previous fiscal year.
This increase is mainly attributed to an increase of 823 million yen in trade notes and accounts receivable
resulting from an increase in net sales and an increase of 384 million yen in inventory through the systematic
accumulation of intermediate stock and etc., despite posting a decrease of 700 million yen in tangible fixed
assets due to depreciation expenses.
Total liabilities increased by 342 million yen from the end of the previous fiscal year. This came largely asa result of an increase in interest-bearing debt of 2,050 million yen resulting from the payment for purchaseof tangible fixed assets, although at the same time accrued amount payable decreased by 812 million yen andnotes payable-equipment decreased by 1,003 million yen.
Total equity increased by 106 million yen from the end of the previous fiscal year. This was primarily due
to an increase of 658 million yen in retained earnings, which eclipsed the decrease in the amount of 496
million yen due to valuation and translation differences.
2(3) Qualitative Information Regarding Consolidated Results Forecast
The future economic environment in Japan and abroad is expected to follow its current course of gradual
recovery driven by continuous growth in emerging countries. However, it is yet too early for optimism, as
there still exist a number of uncertain elements, which include worries about repercussions of economic
stimulus measures, concerns about the performance of Western economies falling below expectations, andissues regarding currency exchange, employment situation, and credit insecurity.
The environment surrounding the Toyo Tanso Group, including the currency exchange situation, also
remains unclear, but as there is a large and immediate demand particularly for LEDs, solar cells, and otherproducts in the environment and energy sector, we expect to continue on a strong note hereafter.
Nevertheless, we will make active, ongoing efforts to expand sales, and to further accelerate our global
expansion through development of high-value-added products and establishment of overseas bases.
Based on the abovementioned situation and the fact that our performance during the first quarter underreview has exceeded projections, we have revised the consolidated results forecast for the first half of the
fiscal year that were announced on July 15, 2010, to net sales of 18 billion yen, an operating profit of 2.7
billion yen, a recurring profit of 2.5 billion yen, and a net income of 1.8 billion yen. We have also revised our
results forecast for the full fiscal year. For details, please refer to the “Notice Concerning the Revision ofConsolidated Forecast,” issued on the same day as this report.
2. Others(1) Changes in significant subsidiaries
None(2) Simple accounting methods and specific accounting methods(i) Simple accounting methods
Inventory valuation method
In calculating inventory at the end of the first quarter under review, the Company has
omitted physical stocktaking and has calculated inventory in a reasonable manner based on
the physical inventory at the end of the previous fiscal year.
(ii) Special accounting methods
Tax expense calculation
Tax expenses are calculated by multiplying profit before income taxes by an effective tax
rate, which is reasonably estimated by applying tax effect accounting to estimated profit
before income taxes for the fiscal year including the first quarter under review.
The income taxes-deferred is included in income taxes.
(3)

Changes in accounting policies, procedures, and methods of presentation
Changes in matters concerning accounting standards
Application of the “Accounting Standard for Asset Retirement Obligations”
Effective as of the first quarter under review, the “Accounting Standard for Asset Retirement
Obligations” (ASBJ Statement No. 18, March 31, 2008) and the “Guidance on the AccountingStandard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) have been
applied.
As a result of the above, operating profit and recurring profit decreased by 2 million yen each, andprofit before taxes decreased by 218 million yen. Additionally, asset retirement obligations changed in
the amount of 275 million yen with the application of the above accounting standard.
Changes in method of presentation
Consolidated quarterly statements of income
The consolidated quarterly financial statement for the first quarter under review is presented under“Income before minority interests,” in compliance with the “Cabinet Office Ordinance for Partial
Revision of the Regulation for Terminology, Forms, and Preparation of Financial Statements”(Cabinet Office Ordinance No. 5, March 24, 2009) based on the “Accounting Standard forConsolidated Financial Statements” (ASBJ Statement No. 22, December 26, 2008).
3

(4) Key event regarding the premise of a going concern
None4

3. Consolidated Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Thousands of yen, rounded down)
As of August 31, 2010
AmountAssetsCurrent assets
Cash on hand and in banks
Trade notes and accounts receivable
Merchandise and finished goods
Work in process
Raw materials and stores
Other
Allowance for doubtful accounts
Total current assets
Fixed assets.
Tangible fixed assets
Buildings and structures (Net)
Machinery, equipment, and vehicles (Net)Land
Construction in progress
Other (Net)
Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Total fixed assets
Total assets

5

As of May 31, 2010
Amount8,152,704
11,479,456
4,336,707
5,798,564
1,159,345
1,215,478(114,898)
32,027,358

7,921,993
10,656,152
4,218,778
5,603,781
1,088,051
1,617,608(106,033)
31,000,331

7,087,622
13,248,270
5,299,792
1,359,580
595,204
27,590,510
890,211
1,726,649
30,207,371
62,234,729

7,258,700
13,628,077
5,308,552
1,526,421
569,023
28,290,775
921,714
1,573,408
30,785,898
61,786,229

(Thousands of yen, rounded down)
As of August 31, 2010
AmountLiabilities
Current liabilities
Trade notes and accounts payable
Short-term borrowings
Accrued amount payable
Income taxes payable
Reserve for employees’ bonuses
Other
Total current liabilities
Long-term liabilities
Long-term borrowings
Reserve for employees’ retirement benefits
Asset retirement obligations
Other
Total long-term liabilities
Total liabilities
EquityShareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock - at cost
Total shareholders’ equity
Revaluation and translation gains (losses)
Unrealized gains (losses) on available-for-sale securities
Foreign currency translation adjustments
Total revaluation and translation gains (losses)
Share warrants
Minority interests
Total equity
Total liabilities and equity

6

As of May 31, 2010
Amount2,337,906
3,051,872
2,535,226
279,598448,201
1,788,994
10,441,799

2,362,097
1,682,140
3,348,215
180,746
713,946
2,633,638
10,920,785

1,112,186
610,952
275,128
728,1292,726,398
13,168,197

431,074592,593
881,521
1,905,188
12,825,974

7,692,575
9,534,686
32,543,268(57,408)
49,713,122

7,692,575
9,534,686
31,884,339(57,408)
49,054,194

1,420(1,727,233)(1,725,813)
10,044
1,069,178
49,066,532
62,234,729

1,842(1,231,034)(1,229,192)
6,696
1,128,557
48,960,255
61,786,229

(2) Consolidated quarterly statements of income
Three months ended August 31, 2010
(Thousands of yen, rounded down)

Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Dividends earned
Gain on foreign currency option
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Valuation loss on investment securities
Other
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on sale of fixed assets
Reversal of allowance for doubtful accounts
Subsidies received
Total extraordinary profit
Extraordinary losses
Loss on sale of fixed assets
Loss on disposal of fixed assets
Effect of application of the Accounting Standard for Asset
Retirement Obligations
Total extraordinary losses

Three months ended
August 31, 2009
Amount5,986,362
4,176,204
1,810,158
1,328,527
481,630

Three months ended
August 31, 2010
Amount
9,054,523
5,932,104
3,122,418
1,465,846
1,656,572

14,982
15,05225,073
15,38770,496

6,336
5,184
47,361
12,986
71,868

5,337
95,665
3,933
17,270122,207429,919

12,478259,490
27,4482,359
301,777
1,426,664

689
45,396
18,93065,016

-

283
2,260

8,024

-

216,240

2,543

224,265

Profit before income taxes

492,392

1,202,399

Income taxes
Income before minority interests
Minority interests
Net income

314,329
27,105150,957

43,1591,159,239
85,621
1,073,617

7

(3) Consolidated quarterly statements of cash flows(Thousands of yen, rounded down)
Three months ended
August 31, 2009
AmountCash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill

Three months ended
August 31, 2010
Amount492,392
773,363
2,726
60,7681,202,399
1,164,946
2,726
28,411

Increase (decrease) in reserve for employees’ retirement benefits
Effect of application of the Accounting Standard for Asset
Retirement Obligations
Increase (decrease) in reserve for employees’ bonuses
Increase (decrease) in reserve for directors’ bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange loss (gain)
Valuation loss (gain) on investment securities
Gain on sale of tangible fixed assets
Loss on disposal and sale of tangible fixed assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other
Sub-total-

216,240(352,882)(35,840)(71,950)(30,034)
5,337
95,665
3,933
(689)
2,543
352,916(1,054,085)
442,931(165,376)
521,719(263,196)
14,407(11,520)
12,478259,490
27,4488,024(1,091,640)(543,658)
138,600
174,307
1,339,464

Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

37,928(3,331)(299,560)
256,756

11,311(11,920)(143,542)
1,195,312

Cash flows from investing activities
Payments for time deposits
Proceeds from time deposits
Payments for acquisition of tangible fixed assets
Proceeds from sale of tangible fixed assets
Payments for acquisition of intangible fixed assets
Other
Net cash used in investing activities(3,737,507)
4,391,203(1,127,493)
780(472,600)
11,365(934,252)(144,132)
147,973(2,529,648)(21,643)(3,522)(2,550,973)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Repayment of finance lease payables
Payments for acquisition of treasury stock
Payments for dividends
Payments for dividends to minority interests(385,354)
427,500(56,461)
(554)
(175)
(327,969)(83,468)

1,039,191
1,091,541(14,937)(3,558)(383,345)-

Net cash provided by (used in) financing activities(426,483)

1,728,891

Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(50,100)(1,154,080)
6,412,364
5,258,283(115,774)
257,455
5,802,412
6,059,8688

(4) Notes regarding the premise of a going concern
Not applicable.

(5) Segment information[Business Segment Information]
From June 1, 2009 to August 31, 2009
Business segment information has been omitted because the entire business of the Company and its
subsidiaries falls under the single business category of carbon product-related business.
[Geographic Segment Information]
Three months ended August 31, 2009 (From June 1, 2009 to August 31, 2009)(Thousands of yen, rounded down)
Japan

North
America

EuropeAsia(1) Sales to unaffiliated customers

3,258,955

691,766

624,647

1,410,993(2) Intersegment sales or transfers

993,860

6,492

390

13,535

Total

4,252,815

698,258

625,037

1,424,528

Operating profit

73,951

31,60236,322

281,064

Corporateand elim.

Consolidated

5,986,362-

5,986,362

1,014,277(1,014,277)-

7,000,640(1,014,277)

5,986,362

422,941

58,688481,630

Total

Sales

(Notes) 1. Countries or regions are grouped together based on geographic proximity.
2. The major countries or regions included in each geographic segment (except Japan) are listed below.
(1) North America: United States(2) Europe: France, Germany, Italy(3) Asia: China, Taiwan[Overseas Sales]
Three months ended August 31, 2009 (From June 1, 2009 to August 31, 2009)(Thousands of yen, rounded down)

I

Overseas sales

II

Consolidated sales

III

Overseas sales as a proportion of consolidated sales (%)

North
America

EuropeAsia

Rest ofworld

678,607746,644

1,913,052

30,048

11.3

12.5

32.0

0.5

Total
3,368,353
5,986,362
56.3(Notes) 1. Countries or regions are grouped together based on geographic proximity.
2. The major countries or regions included in each geographic segment (except Japan) are listed below.
(1) North America: United States(2) Europe: France, Germany, Italy(3) Asia: China, Taiwan
3. The overseas sales are the sales of the Company or its consolidated subsidiaries in countries or regions excluding Japan.

[Segment Information]

1. Reportable segments
The reportable segments of the Toyo Tanso Group are business components for which separate financial
information is available and whose operating results are regularly reviewed by the board of directors in orderto decide on the allocation of management resources and evaluate performance.
The Company primarily engages in the manufacture and sale of carbon products, in Japan through Toyo
Tanso and domestic subsidiaries, and abroad through overseas subsidiaries based in the United States,
Europe, and Asia. All overseas subsidiaries are independently managed companies. They conduct businessby formulating their own comprehensive regional strategies for the products they handle.
For this reason, our business is composed of segments that are based on region-based production and sales
frameworks, and is categorized into the four reportable segments of Japan, United States, Europe, and Asia.

92. Information on net sales and the amount of profits and losses per reportable segment
First quarter under review (from June 1, 2010 to August 31, 2010)(Thousands of yen, rounded down)Amountrecorded intheconsolidated
quarterly
incomestatement(Note) 2

Reportable segments

Japan

UnitedStatesEurope

Asia

Total

Adjusted
amount(Note) 1

Sales(1) Sales to unaffiliated customers

4,997,438

751,703689,585

2,615,796

9,054,523-(2) Intersegment sales or transfers

1,624,433

17,947

10,722

31,356

1,684,460(1,684,460)

9,054,523-

Total

6,621,872

769,651

700,308

2,647,152

10,738,984(1,684,460)

9,054,523

Segment profit (loss)

856,570(13,050)

81,117568,473

1,493,110

163,461

1,656,572(Notes) 1. Adjusted segment profit (loss) mainly takes into account the elimination of inter-segment transactions and unrealized
income.
2. Segment profit (loss) has been adjusted to reflect the operating profit recorded in the consolidated quarterly statement ofincome.

3. Regional information(Thousands of yen, rounded down)
Asia
Japan

Sales

3,718,791

North
America

Europe711,100

801,948

Asia(including
China)
3,768,757

Rest of
world

Total

China only
2,466,739

53,925

9,054,523(Notes) 1. Sales are based on the locations of our customers, and are categorized into the relevant country or region segment
according to geographical proximity.
2. The major countries or regions included in each geographic segment (except Japan) are listed below.
(1) North America: United States(2) Europe: France, Germany, Italy(3) Asia: China, Taiwan, South Korea(Additional information)
Effective as of the first quarter under review, the “Accounting Standard for Disclosures about Segmentsof an Enterprise and Related Information” (ASBJ Statement No. 17, March 27, 2009) and the “Guidanceon the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”(ASBJ Guidance No. 20, March 21, 2008) have been adopted.
(6) Notes if the amount of shareholders’ equity has changed significantly
Not applicable.

104. Supplementary Information(1) Orders and sales by product categoryi.

Orders

Products
Special graphite products
Carbon products for general industries(for mechanical applications)
Carbon products for general industries(for electrical applications)Compound materials and other products
Total

1Q
2,530

(Unit: millions of yen)
Year ending
Year ended May 31, 2010
May 31, 2011
Fiscal year
2Q
3Q
4Q
1Q
total
3,539
3,643
4,349
14,062
4,900

484

523

585

630

2,223

628

1,155

598

891

1,216

3,861

1,190

1,715
5,885

1,297
5,958

2,627
7,747

4,011
10,207

9,652
29,799

2,462
9,182

ii. Outstanding orders
Year ended May 31, 2010
Products
Special graphite products
Carbon products for general industries(for mechanical applications)
Carbon products for general industries(for electrical applications)Compound materials and other products
Total(Unit: millions of yen)
Year ending
May 31, 2011
4Q
1Q
2,637
3,336

1Q
1,522

2Q
1,686

3Q
2,030

282

306

344

382

418

613

414

387

616

679

1,560
3,978

1,728
4,136

2,789
5,551

3,983
7,620

4,406
8,840

iii. Sales performance by product category

2,958(Unit: millions of yen)
Year ending
Year ended May 31, 2010
May 31, 2011
Fiscal year
2Q
3Q
4Q
1Q
total
3,514
3,525
4,186
14,1844,551[Electronics applications]

1,437

1,783

1,757

2,079

7,057

2,611

[General industries applications]

1,307

1,495

1,547

1,840

6,190

1,737

[Others]
Carbon products for general industries(for mechanical applications)
Carbon products for general industries(for electrical applications)Compound materials and other products[3 major products][Other products]
Related goods
Total

213

235

220

267

936

203

537

504

565

663

2,269

625

884

1,030

970

1,046

3,931

1,128

1,442
1,230
212
163
5,986

1,318
1,118
199
292
6,659

1,456
1,268
187
206
6,723

2,494
2,184
309
164
8,554

6,711
5,802
908
827
27,924

2,423
2,124
298
325
9,054

Products
Special graphite products

1Q

11

(2) Overview
Special graphite products
On the whole, the recovery trend in the electronics applications has become a certainty, with significant
increases in demand for our core products for the manufacture of solar cells primarily in China, followed
by Japan, Europe and North America, and the full-scale recovery of orders for products for the
manufacture of single crystal silicon from customers who have completed their inventory adjustment.
Products for the manufacture of solar cells, in particular, are expected to continue their robust performance,
as motivations for installation remain strong among our customers.
In the general industries applications, signs of economic recovery promoted the gradual recovery of ourcore products for electrical discharge machine (EDM) electrodes and metallurgical applications, mainly
overseas.
Carbon products for general industries
Carbon products for mechanical applications continued to improve along with the trend toward
economic recovery. However, full recovery is still out of reach, as it is expected to take more time to dispel
concerns about the hollowing-out of industries and flagging capital investments in Japan. Meanwhile, thecultivation of new demand overseas has made steady headway, and continuous efforts will be directed to
expanding sales.
In the carbon products for electrical applications, our core products for small motors intended for
vacuum cleaners and electric power tools continued to enjoy brisk sales mainly in China. Our otherproducts, including automotive products such as fuel pumps, also remained strong.
Compound materials and other products
SiC (silicon carbide)-coated graphite products did extremely well on the whole, owing to continued
strong demand for LEDs mainly in Asia, and to the full recovery of semiconductor-related products.
Demand for C/C composite products picked up as a result of the progress in our customers’ inventory
adjustment of products for the manufacture of single crystal silicon and the expansion of our customer
base. Demand for products for the manufacture of solar cells and orders from new customers also
remained at high levels. Graphite sheet products, and particularly those for automotive and semiconductor
applications, maintained a strong and steady trend.

12