Translation

Member of the Financial Accounting Standards Foundation

January 12, 2012

Consolidated Financial Results for the Six Months Ended November 30, 2011
[Japanese GAAP]
Toyo Tanso Co., Ltd.
Tokyo Stock Exchange, 1st Section
5310
Osaka, Japan
http://www.toyotanso.co.jp
Naotaka Kondo, President
Toshimi Boki, Executive Officer, General Manager,
Finance and Accounting Department
81-6-6451-2114 (from overseas)

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:

January 13, 2012-

Yes
Yes (for securities analysts and institutional investors)

1. Consolidated financial results for the six months ended November 30, 2011
(From June 1, 2011 to November 30, 2011)(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%%

Six months ended
21,535
17.0
November 30, 2011
Six months ended
18,413
45.6
November 30, 2010
Note:
Comprehensive income:Six months ended November 30, 2011
Six months ended November 30, 2010
Net income per share

Six months ended
November 30, 2011
Six months ended
November 30, 2010

Net income
%

%

4,411

46.1

4,363

56.0

2,383

24.4

3,019

269.6

2,796

322.9

1,916

418.2

1,928 million yen (up 54.8 %)1,245 million yen ( - %)Diluted net income
per share

yen

yen

114.98

-

92.45

-

(2) Financial position(Millions of yen, rounded down)
Total assets

EquityEquity ratio%

As of November 30, 2011

67,23353,22477.0

As of May 31, 2011

65,191

51,74877.5

Reference: Shareholders’ equity
November 30, 2011
May 31, 2011

51,771 million yen
50,510 million yen

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

First quarter end-

Year-end

Third quarter end--(Actual)Year ending May 31, 2012
(Forecast)(Note) Revisions of projected dividends most recently announced: None-

Year ended May 31, 2011
Year ending May 31, 2012

Total (Full year)

22.00

22.00
-

-

25.00

25.00

3. Consolidated results forecast for the fiscal year ending May 31, 2012
(From June 1, 2011 to May 31, 2012)(Millions of yen, rounded down)(Percentages indicate changes from the same period in the previous fiscal year.)
Net income
Operating profit
Recurring profit
Net income
per share

Net sales%
Full year

40,000

6.5

%
6,300

7.4

(Note) Revisions of consolidated forecasts most recently announced: None

%
6,300

12.2

4,000

%

yen

8.1

192.92

4. Others(1) Changes in significant subsidiaries during the quarter under review: None
(Changes in specified subsidiaries accompanying changes in scope of consolidation)
New subsidiaries: ___ (name of company(ies))
Excluded subsidiaries: ___ (name of company(ies))(2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial
statements: Yes(Note) For details, please refer to “Adoption of specific accounting methods for the preparation ofquarterly consolidated financial statements” on Page 3 (attached materials)(3) Changes in accounting policies and accounting estimates and restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1): None
3) Changes in accounting estimates: None
4) Restatements: None
(Note) For details, please refer to “Adoption of specific accounting methods for the preparation ofquarterly consolidated financial statements” on Page 3 (attached materials)(4) Number of shares outstanding (common stock)i. Number of shares outstanding and issued at the end of period (including treasury stock)
As of November 30, 2011
20,750,688 shares
As of May 31, 2011
20,750,688 shares
ii. Number of treasury stock at the end of period
As of November 30, 201116,265 shares
As of May 31, 201116,265 sharesiii. Average number of shares during the period (quarterly cumulative total)
Second quarter ended November 30, 2011 20,734,423 shares
Second quarter ended November 30, 2010 20,734,473 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
(We urge you to be cautious in relying on forward-looking statements.)
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 3 of the Attached
Documents.
(How to acquire supplementary materials for financial summaries and information disclosed at our
financial results briefing.)
We are scheduled to hold a financial results briefing for securities analysts and institutional investors on
January 23, 2012. The materials distributed at the briefing are scheduled to be disclosed on TDnet andour homepage on that same day.

○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. Items regarding summary information (Others) ··················································································· 3(1) Changes in significant subsidiaries during the quarter period under review ······························· 3(2) Adoption of specific accounting methods for the preparation of quarterly
consolidated financial statements········································································································ 3(3) Changes in accounting policies and accounting estimates and restatements ································ 3
3. Key event regarding the premise of a going concern············································································· 3
4. Quarterly Consolidated Financial Statements························································································ 4(1) Quarterly consolidated balance sheets ······························································································· 4(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income·································································································· 6
Quarterly consolidated statements of income ··················································································· 6
Quarterly consolidated statements of comprehensive income ························································ 7(3) Quarterly consolidated 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
5. 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 second quarter under review, the global economy on the whole gradually continued on its roadto recovery, buttressed by economic growth in Asia and other emerging countries. Furthermore, the Japanese
economy turned upward as the impact of the Great East Japan Earthquake gradually waned. However,concerns of a downturn in the Japanese and overseas economies are in the process of materializing due to thegrowing feeling that the world economy is slowing down that can be traced to the European credit crisis, inaddition to being hindered by the historically high level of the yen against the U.S. dollar in Japan, and soforth.
Amid these circumstances, the Toyo Tanso Group concentrated its efforts on improving and expanding its
earnings by trying to actively absorb sharply increasing demand mainly in the environment- andenergy-related sectors and increasing sales prices, such as through the shift to high value-added goods.
As a result, the Group’s business performance improved during the second quarter under review, despite
the impact of the rising yen or the heavy burden of depreciation expenses. Net sales totaled 21,535 million
yen (up 17.0% from the same term in the previous year), operating profit 4,411 million yen (up 46.1%), andrecurring profit 4,363 million yen (up 56.0%). Net income for the quarter was 2,383 million yen (up 24.4%).
Moreover, our prior year income tax, etc. for transactions between Toyo Tanso and our Chinese subsidiaryover the past six years from the fiscal year ended May 31, 2006 to the fiscal year ended May 31, 2011 is theamount of our tax penalty based on the retrospective tax adjustment according to the transfer pricing
taxation.
The overall performance of each business segment was as follows. (Please refer to “Supplementary
Information” for an overview of each product category.)Japan
Sales in Japan on the whole expanded thanks to the economic upturn, the gradual weakening of the impactof the earthquake disaster and our absorption of reconstruction-related demand. As a result, net sales for thequarter in Japan were 10,267 million yen and operating profit was 1,826 million yen.
United States
Despite the impact of the yen appreciation, products chiefly for semiconductor and solar cell applications
remained on a recovery path. As a result, sales totaled 1,495 million yen while operating profit came to 102
million yen.
EuropeSales of primarily industrial furnace- and brush-related products fared better than expected in spite of the
impact of the strong yen and concerns over the slowdown of the European economies. As a result, net sales
for the quarter in Europe were 1,587 million yen and operating profit was 262 million yen.
Asia
Business performance in Asia overall was exceedingly robust primarily in the first half of the quarter
under review, spurred by the upsurge in demand for solar cell-related products and expanded sales ofmetallurgical and other general industrial-related applications due to the vibrant economies primarily in
China and other emerging countries. As a result, net sales for the quarter in Asia were 8,184 million yen andoperating profit was 2,168 million yen.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of November 30, 2011 increased by 2,041 million yen from the end of the previous
consolidated fiscal year. This increase is mainly attributable to the 1,346 million yen rise in trade notes andaccounts receivable primarily from higher sales and the 1,182 million yen rise in inventories through thesystematic accumulation of intermediate stock, etc. These increases eclipsed the 423 million yen decrease in
cash on hand and in banks chiefly resulting from the payment for the acquisition of tangible fixed assets, etc.
Total liabilities increased by 565 million yen from the end of the previous consolidated fiscal year. Thiswas primarily caused by an increase of 488 million yen in trade notes and accounts payable owing mainly toa rise in the procurement of raw materials, etc. and a rise of 527 million yen in accrued amount payable due
2to capital investment, etc. This exceeded the decrease of 281 million yen in interest-bearing debt.
Total equity increased by 1,476 million yen from the end of the previous consolidated fiscal year. This net
increase chiefly stemmed from such factors as an increase of 1,927million yen in retained earnings.
(3) Qualitative Information Regarding Consolidated Results Forecast
Regarding domestic and overseas economic conditions going forward, we expect the global economy toremain on a mild recovery path. However, the future is unpredictable in light of escalating concerns over a
global economic downturn traced to the credit crisis in Europe and foreign-exchange trends.
Regarding the conditions surrounding our Group, we are unlikely to avert at least a short-term correction,owing to the historically high level of the yen rate and the current apparently abnormal situation of the solar
cell market. We will endeavor to cover a prospective decline in solar cell product demand with expanded
sales efforts in a broad range of fields, including general industrial- and machinery-related applications.
Although our performance during the second quarter under review has slightly exceeded projections, wewill not revise the consolidated results forecast for the full fiscal year that was announced on October 13,
2011, based on the above-mentioned conditions.
2. Items regarding summary information (Others)(1) Changes in significant subsidiaries during the quarter period under review
None(2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial
statements
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 second quarter under review.
The income taxes-deferred is included in income taxes.
(3)

Changes in accounting policies and accounting estimates and restatements
Changes in accounting policies
Adoption of the Accounting Standard for Earnings Per Share and others
From the first quarter of the fiscal year under review, the Company has applied the “AccountingStandard for Earnings Per Share” (Accounting Standards Board of Japan (ASBJ) Statement No.2,
June 30, 2010); and the “Guidance on Accounting Standard for Earnings Per Share” (ASBJ Guidance
No.4, June 30, 2010).
The Company has changed the method by which it calculates quarterly diluted earnings per share
as follows. For stock options that vest after a specified service period, the Company now includes the
portion of stock options’ fair value attributable to future services provided to our company whencalculating the cash proceeds assumed to be receivable upon exercise of the stock options.
However, this revision does not have any impact on quarterly diluted earnings per share.

3. Key event regarding the premise of a going concern
None3

4. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets
Previous consolidated fiscal
year
As of May 31, 2011
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

4(Thousands of yen, rounded down)
Second quarterly consolidated
fiscal year
November 30, 2011
Amount

9,283,891
13,047,069
4,761,418
6,182,218
1,511,288
1,591,422(111,741)
36,265,565

8,860,128
14,393,788
5,317,156
6,335,457
1,985,297
1,511,452(103,813)
38,299,466

7,373,417
12,096,129
5,296,473
655,395
740,800
26,162,216
785,261
1,978,597
28,926,075
65,191,641

7,306,369
11,348,169
5,590,237
1,164,070
749,637
26,158,484
751,875
2,023,725
28,934,086
67,233,553

Previous consolidated
fiscal year
As of May 31, 2011
AmountLiabilities
Current liabilities
Trade notes and accounts payable
Short-term borrowings
Accrued amount payable
Income taxes payable
Reserve for employees’ bonuses
Reserve for directors’ and corporate auditors’
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
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Share warrants
Minority interests
Total equity
Total liabilities and equity

5(Thousands of yen, rounded down)
Second quarterly
consolidated fiscal year
As of November 30, 2011
Amount2,950,193
1,406,013
2,538,873
1,495,600
825,2713,439,004
1,382,897
3,066,085
1,494,062
965,728

78,480-1,788,486
11,082,920

1,596,119
11,943,897

665,014
658,878
278,121758,3422,360,356
13,443,276

406,660
631,516
270,234
756,4072,064,820
14,008,718

7,692,575
9,534,686
35,169,221(57,630)
52,338,853

7,692,575
9,534,686
37,097,040(57,630)
54,266,671

2,941(1,831,083)(1,828,141)
20,0881,217,565
51,748,364
65,191,641

10,470(2,505,598)(2,495,127)
26,784
1,426,507
53,224,834
67,233,553

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)Six months ended November 30, 2011
(Thousands of yen, rounded down)
Six months ended
November 30, 2010

Six months ended
November 30, 2011

Amount18,413,312
12,399,169
6,014,142
2,994,351
3,019,791

Amount21,535,432
13,781,900
7,753,531
3,341,882
4,411,649

13,576
5,184
32,03725,27876,077

19,486
4,790
90,01425,193
139,485

25,352
250,600
17,6005,794
299,348
2,796,520

15,737
155,445
5,664
11,258188,105
4,363,029

724
300
1,024

65,27465,274

12,676740
38,440216,240-

228,916

39,181

Profit before income taxes

2,568,628

4,389,122

Income taxes
Prior year income tax, etc.
Income before minority interests
Minority interests
Net income

514,352
2,054,275
137,292
1,916,983

1,162,090
540,2312,686,800
302,824
2,383,975

Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest 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
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

6

(Quarterly consolidated statements of comprehensive income)Six months ended November 30, 2011
(Thousands of yen, rounded down)
Six months ended
November 30, 2010
AmountIncome before minority interests
Other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to parent company
shareholders
Comprehensive income attributable to minority interests

7

Six months ended
November 30, 2011
Amount2,054,275

2,686,800

(6)

7,529

(808,692)(766,273)(808,698)(758,744)

1,245,576

1,928,055

1,204,599
40,976

1,716,989
211,066

(3) Quarterly consolidated statements of cash flows(Thousands of yen, rounded down)
From June 1, 2010
From June 1, 2011
to November 30, 2010
to November 30, 2011
AmountAmountCash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
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 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-totalInterest and dividend received
Interest paid
Income taxes paid
Net cash provided by operating activities
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
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 dividends
Payments for dividends to minority interests
Net cash provided by (used in) financing activities
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

82,568,628
2,372,148
5,453

4,389,122
2,178,293
5,453

53,594(18,740)

216,240-

128,571
38,508(18,761)
25,352
250,600
17,600(724)
12,676145,299(2,696)(24,277)
15,737
155,4455,664(65,274)
39,181(1,962,304)(1,758,375)(651,918)
557,675
279,393
3,892,735
17,997(24,507)(183,679)
3,702,546(1,382,932)
742,233(304,080)
4,120,052
23,557(16,344)(1,642,485)
2,484,779(608,032)
676,563(3,937,730)
1,371(25,883)(22,227)(3,915,938)(462,547)
684,755(2,145,346)
89,610(44,221)
123,723(1,754,024)(211,066)
1,189,285(161,192)(8,306)(413,024)(86,740)
308,954

141,509(367,000)(15,050)(455,044)(33,962)(729,547)(152,511)(182,493)(56,949)
5,802,412
5,745,463(181,286)
7,090,9786,909,692

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

(5) Segment information
I. Six months ended November 30, 2010 (From June 1, 2010 to November 30, 2010)
1. Information on net sales and the amount of profits and losses per reportable segment(Thousands of yen, rounded down)Amountrecorded intheconsolidated
quarterly
incomestatement(Note) 2

Reportable segments
Adjusted
amount(Note) 1

Japan

UnitedStatesEurope

Asia

Total

(1) Sales to unaffiliated customers

10,199,139

1,424,183

1,480,422

5,309,567

18,413,312-

18,413,312(2) Intersegment sales or transfers

3,516,657

35,597

11,33665,8883,629,480(3,629,480)

-

Total

13,715,796

1,459,781

1,491,759

5,375,455

22,042,792(3,629,480)

18,413,312

Segment profit (loss)

1,619,719(10,306)

196,272

968,567

2,774,252

245,539

3,019,791

Sales(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.

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

Sales
Composition (%)

North
America

Europe7,759,430

1,380,015

1,675,486

Asia(including
China)
7,479,115

42.1

7.5

9.1

40.6

Rest of
world

Total

China only
5,021,988

119,265

18,413,312

27.3

0.7

100.0

(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

9II. Second quarter under review (from June 1, 2011 to November 30, 2011)

1. Information on net sales and the amount of profits and losses per reportable segment(Thousands of yen, rounded down)Amountrecorded intheconsolidated
quarterly
incomestatement(Note) 2

Reportable segments
Adjusted
amount(Note) 1

Japan

UnitedStatesEurope

Asia

Total

(1) Sales to unaffiliated customers

10,267,918

1,495,366

1,587,429

8,184,717

21,535,432-(2) Intersegment sales or transfers

4,945,530

239,564

39,677

37,633

5,262,404(5,262,404)

-

Total

15,213,448

1,734,930

1,627,106

8,222,350

26,797,837(5,262,404)

21,535,432

1,826,828

102,953

262,371

2,168,575

4,360,729

50,9194,411,649

Sales

Segment profit

21,535,432(Notes) 1. Adjusted segment profit mainly takes into account the elimination of inter-segment transactions and unrealized income.
2. Segment profit has been adjusted to reflect the operating profit recorded in the consolidated quarterly statement ofincome.

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

Sales
Composition (%)

North
America

Europe7,826,120

1,478,680

1,808,445

Asia(including
China)
10,297,890

36.3

6.9

8.4

47.8

Rest of
world

Total

China only
7,894,655

124,294

21,535,432

36.7

0.6

100.0

(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(6) Notes if the amount of shareholders’ equity has changed significantly
Not applicable.

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

Orders(Unit: millions of yen)
Year ending May 31, 2012

Year ended May 31, 2011

1Q

2Q

6,158

Fiscalyear
total
20,758

6,154

5,440

11,594

699

841

2,856

860

740

1,600

2,194

1,217

967

4,379

1,085

821

1,906

4,555
17,380

2,144
9,347

2,549
10,516

9,249
37,243

2,121
10,221

1,880
8,882

4,001
19,103

2Q

Products

1Q

2Q

3Q

4Q

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

4,900

4,413

9,314

5,285

628

686

1,315

1,190

1,003

2,462
9,182

2,093
8,197

cumulative

2Q
cumulative

ii. Outstanding 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

Year ended May 31, 2011
2Q
3Q
3,328
3,834

1Q
3,336

4Q
4,787

(Unit: millions of yen)
Year ending May 31, 2012
1Q
2Q
4,956
4,494

418

464

512

648

748

731

679

648

947

1,030

1,128

1,017

4,406
8,840

3,865
8,307

3,799
9,094

3,930
10,397

3,508
10,342

3,055
9,299

iii. Sales performance by product category(Unit: millions of yen)
Year ending May 31, 2012

Year ended May 31, 2011
Products

1Q

2Q

5,598

Fiscalyear
total
19,863

5,972

5,795

11,767

2,983

3,506

11,731

3,649

3,565

7,215

1,810

1,846

7,238

2,035

1,946

3,982

409

237

245

893

287

283

570

678

1,303

684

741

2,728

793

796

1,589

1,128

1,063

2,191

955

935

4,082

1,012

959

1,972

2,423
2,124
298
325
9,054

2,648
2,257
391
287
9,358

5,072
4,382
690
612
18,413

2,234
1,838
395
270
9,175

2,427
2,070
357
265
9,968

9,734
8,290
1,443
1,149
37,557

2,961
2,600
361
235
10,976

2,785
2,437
348
222
10,559

5,747
5,038
709
457
21,535

1Q

2Q

4,551

4,681

[Electronics applications]

2,611[General industries applications]

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

Special graphite products

2Q

3Q

4Q

9,233

5,031

2,630

5,241

1,844

3,581

203

206

625

cumulative

11

2Q
cumulative

(2) Overview
Special graphite products
As a whole, demand for electronics applications was driven by sharply increased sales of special
graphite products for the manufacture of solar cells, our core application, primarily in China, while
demand for products for the manufacture of single crystal silicon stagnated, reflecting the sluggishness inthe semiconductor industry. That said, demand for products for the manufacture of solar cells increasingly
underwent correction near the end of the term.
Demand for special graphite products for general industries applications remained strong on the whole,primarily due to the firmer-than-expected demand in domestic and overseas markets forautomobile-related products, industrial furnaces and metallurgical applications, in line with the domestic
economic recovery and economic growth of emerging countries.
Carbon products for general industries
Sales of carbon products for mechanical applications expanded, thanks largely to increased domestic
demand for such products as bearings and seals partly bolstered by the economic upturn as well as ourprogress in meeting reconstruction-related demand.
Among carbon products for electrical applications, sales of our products for small motors intended for
vacuum cleaners and electric power tools remained generally sluggish due to stiffer competition primarily
in our mainstay Chinese market and the impact of the yen appreciation.
Compound materials and other products
Orders for SiC (silicon carbide)-coated graphite products leveled off as a whole, mainly because they
still need to undergo an adjustment despite the demand for LED-related products, which is in the process
of bottoming out but was forced to undergo a correction in reaction to the steep growth in such demand.
Orders for C/C composite products generally remained firm as a result of the steady increase in demandfor products for the manufacture of single crystal silicon as well as the rise in demand for products for the
manufacture of solar cells and industrial furnaces primarily in overseas markets. Moreover, orders forgraphite sheet products remained generally brisk, bolstered by the smooth recovery in demand for products
for automotive applications. Such orders were robust despite the loss of momentum of orders for products
for the manufacture of semiconductors and solar cells in the latter half of this term.

12