Translation

Member of the Financial Accounting Standards Foundation

January 13, 2011

Consolidated Financial Results for Six Months Ended November 30, 2010
[Japanese GAAP]
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)

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 14, 2011
-

Yes
Yes

1. Consolidated financial results for six months ended November 30, 2010
(From June 1, 2010 to November 30, 2010)(1) Operating results (cumulative total)
Net sales(Millions of yen, rounded down)
Percentages indicate changes from the same period in the previous fiscal year.

Operating profit

Recurring profit%
Six months ended
November 30, 2010
Six months ended
November 30, 2009

Net income

%

%

%

18,413

45.6

3,019

269.6

2,796

322.9

1,916

418.2

12,646(29.7)

817(80.3)

661(82.4)

369(84.5)Net income per share

Six months ended
November 30, 2010
Six months ended
November 30, 2009

Diluted net income
per share

yen

yen

92.45

-

17.84

-

(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 November 30, 2010

61,894

49,11178.5

2,344.64

As of May 31, 2010

61,786

48,96077.4

2,306.55

Reference: Shareholders’ equity
November 30, 2010
May 31, 2010

48,614 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%

Full year

35,00025.3(Millions of yen, rounded down)
Percentages indicate changes from the previous fiscal year
Net income
Recurring profit
Net income
per share

%
5,000

121.9

%
4,800

131.9

3,300

%

yen

128.8

159.16

Note: Revisions of consolidated forecast during the period: Yes
The consolidated forecasts for the full financial year have been revised on January 13, 2011. For details, please refer to the “NoticeConcerning the Revision of Consolidated Forecast,” issued on January 13, 2011.

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 November 30, 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 November 30, 2010
16,215 shares
As of May 31, 2010
16,215 sharesiii. Average number of shares during the period (quarterly cumulative total)
Second quarter ended November 30, 2010
20,734,473 shares
Second quarter ended November 30, 2009
20,734,523 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 second quarter under review, credit insecurity issues in Europe and concerns of an economic
stagnation in Western countries continued to weigh on the global economy, but steady steps toward economic
recovery were supported by economic growth in Asia and emerging countries, and by the effects ofeconomic stimulus measures in each country. The Japanese economy also continued its general recovery
trend as a result of improvement in exports and production and recovery of capital investment, even while
uncertainties such as the rising yen and the stagnant employment situation have remained.
Amid these circumstances, the Toyo Tanso Group concentrated its efforts on expanding business andimproving performance, by actively absorbing rapidly increasing demands mainly in the environment andenergy sectors and further accelerating global expansion particularly in Asia.
As a result, the Group’s business performance improved dramatically during the second quarter underreview, despite the impact of the rising yen and the increased burden of depreciation expenses. Net sales
totaled 18,413 million yen (up 45.6% from the same term last year), operating profit 3,019 million yen (up269.6%), and recurring profit 2,796 million yen (up 322.9%). Net income for the quarter was 1,916 million
yen (up 418.2%).
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 10,199 million yen andoperating profit was 1,619 million yen.
United States
Business performance in the United States continued its recovery trend mainly in semiconductor and solar
cell products, but growth was largely impacted and limited by the strong yen. As a result, net sales for thequarter in the United States were 1,424 million yen and operating loss was 10 million yen.
EuropeAgainst a backdrop of economic recovery in Europe, business in Europe remained strong, mainly in solar
cell and brush products. As a result, net sales for the quarter in Europe were 1,480 million yen and operating
profit was 196 million yen.
Asia
Owing to robust growth in demand particularly for solar cell and compound semiconductor products,
products for all related applications showed steady growth in Asia. As a result, net sales for the quarter in
Asia were 5,309 million yen and operating profit was 968 million yen.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of November 30, 2010 increased by 108 million yen from the end of the previous fiscal
year. This increase is mainly attributed to an increase of 1,558 million yen in trade notes and accounts
receivable resulting from an increase in net sales and an increase of 429 million yen in inventories throughthe systematic accumulation of inventory stock, etc. This offset a decrease of 1,310 million yen in tangible
fixed assets due to depreciation and other expenses.
Total liabilities decreased by 642 million yen from the end of the previous fiscal year. This was mainly
caused by the decrease in notes payable-equipment of 1,568 million yen and decrease in the accrued amountpayable of 948 million yen. This offset the 321 million yen increase in trade notes and accounts payable
stemming from a rise in the procurement of raw materials due to an increased number of orders, the postingof 276 million yen in asset retirement obligations and the 737 million yen rise in interest-bearing debt
resulting from the payment for the purchase of tangible fixed assets, etc.
2

Total equity increased by 750 million yen from the end of the previous fiscal year. This was primarily due
to an increase of 1,502 million yen in retained earnings, which eclipsed the decrease of 712 million yen inforeign currency translation adjustments.
(3) Qualitative Information Regarding Consolidated Results Forecast
The future economic environment inside and outside of Japan 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 the repercussions of reduced economic stimulus measures are gradually appearing, and there
still exist a number of uncertainties, including concerns about the downside risk of Western economies aswell as issues regarding currency exchange, credit insecurity, and the employment situation.
The future environmental background surrounding the Toyo Tanso Group also remains unpredictable andrife with concerns about the continued rising of the yen, its intensifying repercussions, and adjustment issues,even though immediate demand particularly for LEDs, solar cells, and other products in the environment andenergy sector has continued to be strong. In response to this situation, continuous efforts will be made to
expand business from a medium to long-term perspective, and to further accelerate global expansion throughthe development of high-value-added products and the establishment of overseas bases.
Based on the above, the consolidated results forecast for the fiscal year under review, announced on
October 13, 2010, have been revised to net sales of 35 billion yen, an operating profit of 5 billion yen, arecurring profit of 4.8 billion yen, and a net income of 3.3 billion yen. For details, please refer to the “NoticeConcerning the Revision of Consolidated Forecast,” issued on the same day as this report. (Assumed
exchange rate for the third quarter and on: 80 yen/US dollar; 110 yen/EUR)
2. Others(1) Changes in significant subsidiaries
None(2) Simple accounting methods and specific accounting methods(i) Simple accounting methods
None(ii) Special accounting methods
Tax expense calculation
Tax expenses are calculated by multiplying profit before income taxes by an effective tax rate, whichis reasonably estimated by applying tax effect accounting to estimated profit before income taxes forthe fiscal year including the second 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 Accounting Standard 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 for the second quarter under review
decreased by 4 million yen each, and profit before taxes decreased by 220 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 second 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 for Consolidated Financial Statements” (ASBJ
3

Statement No. 22, December 26, 2008).
(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 November 30, 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
Amount

7,762,444
12,214,331
4,359,694
5,789,156
1,191,011
1,101,563(140,066)
32,278,135

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

7,601,969
12,996,042
5,301,815
440,632
639,433
26,979,892
848,207
1,788,430
29,616,530
61,894,666

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 November 30, 2010
AmountAs of May 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

2,683,903
1,901,016
2,399,677
606,937
838,975
1,125,615
9,556,125

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

949,367
639,473
276,126
762,476
2,627,443
12,183,568

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

EquityShareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock - at cost
Unrealized gains (losses) on available-for-sale securities
Foreign currency translation adjustments
Total shareholders’ equity
Share warrants
Minority interests
Total equity
Total liabilities and equity

7,692,575
9,534,686
33,386,633(57,408)
1,835(1,943,411)
48,614,912
13,392
1,082,793
49,711,097
61,894,666

7,692,575
9,534,686
31,884,339(57,408)
1,842(1,231,034)
47,825,002
6,696
1,128,557
48,960,255
61,786,229

6

(2) Consolidated quarterly statements of income
Six months ended November 30, 2010
(Thousands of yen, rounded down)

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
Reversal of allowance for doubtful accounts
Subsidies received
Reversal of prior-year special severance allowance
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

Six months ended
November 30, 2009
Amount12,646,065
9,079,843
3,566,222
2,749,186
817,035

Six months ended
November 30, 2010
Amount18,413,312
12,399,169
6,014,142
2,994,351
3,019,791

28,22015,052
63,63747,504
154,415

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

16,724
257,753
13,47922,179310,137
661,31325,352
250,600
17,6005,794
299,348
2,796,520

33,72745,526
26,73521,053127,043

724
300
1,024

275
5,973

12,676-216,240

6,248

228,916

Profit before income taxes

782,1072,568,628

Income taxes
Income before minority interests
Minority interests
Net income

368,431
43,763369,912514,352
2,054,275
137,292
1,916,983

7

(3) Consolidated quarterly statements of cash flows(Thousands of yen, rounded down)
Six months ended
November 30, 2009
AmountCash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill

Six months ended
November 30, 2010
Amount782,107
1,615,551
5,453
148,577(21,053)

2,568,628
2,372,148
5,453
53,594--

216,240(34,904)(35,840)(72,704)(43,272)
16,724
257,753
13,479(33,727)6,248(525,992)(1,022,594)
432,875(110,334)
1,378,347
45,816(13,574)
292,554
1,703,142

128,571
38,508(18,761)
25,352
250,600
17,600(724)
12,676(1,962,304)(651,918)
557,675
279,393
3,892,735
17,997(24,507)(183,679)
3,702,546

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(4,379,156)
5,361,700(3,955,719)
134,721(521,831)
10,773(3,349,511)(608,032)
676,563(3,937,730)
1,371(25,883)(22,227)(3,915,938)

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

97,915553,350(104,214)(1,517)(410)(412,996)(83,468)(211,066)
1,189,285(161,192)(8,306)(413,024)(86,740)

Increase (decrease) in reserve for employees’ retirement benefits
Reversal of prior-year special severance allowance
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-totalInterest and dividends received
Interest paid
Income taxes refunded (paid)
Net cash provided by operating activities

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

848,657

308,954(136,511)(1,734,222)
6,412,364
4,678,142(152,511)(56,949)
5,802,412
5,745,463

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

(5) Segment information[Business Segment Information](From June 1, 2009 to November 30, 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](From June 1, 2009 to November 30, 2009)(Thousands of yen, rounded down)

Japan

North
America

Europe

Asia

Total

Corporateand elim.

Consolidated(1) Sales to unaffiliated customers

6,764, 678

1,211,377

1,197,430

3,472,579(2) Intersegment sales or transfers

2,269,151

10,581

508

42,166

12,646,065-

12,646,065

2,322,407(2,322,407)

-

Total

9,033,829

1,221,958

1,197,938

Operating profit (loss)(102,636)

3,017

35,546

3,514,745

14,968,473(2,322,407)

12,646,065

647,634

583,562

233,473

817,035

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](From June 1, 2009 to November 30, 2009)

I

Overseas sales

II

Consolidated sales

III

Overseas sales as a proportion of consolidated sales (%)(Thousands of yen, rounded down)North
America

EuropeAsia

1,170,312

1,401,391

4,544,550

Rest ofworld
81,507

Total
7,197,760
12,646,065

9.3

11.1

35.9

0.6

56.9

(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(From June 1, 2010 to November 30, 2010)(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-(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
18,413,312(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(From June 1, 2010 to November 30, 2010)(Thousands of yen, rounded down)
Asia

Japan

Sales

7,759,430

North
America

1,380,015

Europe1,675,486

Asia(including
China)
7,479,115

Rest of
world

Total

China only
5,021,988

119,265

18,413,312(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(Unit: millions of yen)
Year ending May 31, 2011

Year ended May 31, 2010
3Q

4Q

6,069

3,643

4,349

Fiscal year
total
14,062

523

1,007

585

630

1,155

598

1,753

891

1,715

1,297

3,013

5,885

5,958

11,8442Q
cumulative

Products

1Q

2Q

Special graphite products
Carbon products for generalindustries(for mechanical applications)
Carbon products for generalindustries(for electrical applications)Compound materials and otherproducts
Total

2,530

3,539

484

2Q
cumulative

1Q

2Q

4,900

4,413

9,314

2,223

628

686

1,315

1,216

3,861

1,190

1,003

2,194

2,627

4,011

9,652

2,462

2,093

4,555

7,747

10,207

29,799

9,182

8,197

17,380ii. Outstanding orders(Unit: millions of yen)
Year ending May 31,
2011
4Q
1Q
2Q
2,637
3,336
3,328

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

1Q
1,522

2Q
1,686

3Q
2,030

282

306

344

382

418

464

613

414

387

616

679

648

1,560
3,978

1,728
4,136

2,789
5,551

3,983
7,620

4,406
8,840

3,865
8,307

iii. Sales performance by product category(Unit: millions of yen)
Year ending May 31, 2011

Year ended May 31, 2010
Products

1Q

2Q

Special graphite products

2,958

3,514

[Electronics applications][General industries
applications][Others]
Carbon products for generalindustries(for mechanical applications)
Carbon products for generalindustries(for electrical applications)Compound materials and otherproducts[3 major products][Other products]
Related goods
Total

1,437

1,783

1,307

1,495

213

2Q
cumulative

Fiscal year
total

4Q

6,472

3,525

4,186

14,184

4,551

4,681

9,233

3,220

1,757

2,079

7,057

2,611

2,630

5,241

2,803

1,547

1,840

6,190

1,737

1,844

3,581

235

448

220

267

936

203

206

409

537

504

1,041

565

663

2,269

625

678

1,303

884

1,030

1,915

970

1,046

3,931

1,128

1,063

2,191

1,442

1,318

2,761

1,456

2,494

6,711

2,423

2,648

5,072

1,230
212
163
5,986

1,118
199
292
6,659

2,349
411
456
12,646

1,268
187
206
6,723

2,184
309
164
8,554

5,802
908
827
27,924

2,124
298
325
9,054

2,257
391
287
9,358

4,382
690
612
18,413

11

1Q

2Q

2Q
cumulative3Q

(2) Overview
Special graphite products
In electronics applications, demand for special graphite products for the manufacture of solar
cells sharply expanded in the Asian region, primarily in China, our mainstay market. In Japan, Europe andthe United States, demand for such products was strong. Demand is expected to remain brisk, owing tocontinued strong motivations for the installation of solar cell manufacturing equipment among ourcustomers, especially in China, Korea and Taiwan. The demand for products for the manufacture of single
crystal silicon is on a recovery track, but it leveled off in response to the temporary lull in the domestic
semiconductor industry.
Demand for special graphite products for general industries applications remained strong on the whole,
thanks largely to the upturn in overseas demand for our mainstay products for electrical dischargemachine (EDM) electrodes and metallurgical applications in line with the economic recovery, as well as
the upswing in domestic sales.
Carbon products for general industries
Demand for carbon products for mechanical applications continued to recover gradually along with theeconomic recovery. Although there are concerns about the impact of the hollowing-out of industries andstagnation of capital investment in Japan due to the appreciation of the yen, overseas sales have risen as
efforts to cultivate new demand bore fruit.
Among carbon products for electrical applications, sales of our core products for small motors intended
for vacuum cleaners and electric power tools were steady both at home and abroad. However, over thesecond half of the fiscal year, orders for small motors intended for vacuum cleaners in China weakened
and sales of carbon products for automobiles, such as fuel pumps, lost momentum in Japan partly inreaction to the end of the subsidy program for eco-friendly cars.
Compound materials and other products
Demand for SiC (silicon carbide)-coated graphite products rose sharply, thanks to the high growth insales of LED-related products mainly in Asia and recovery of semiconductor-related products. That said,orders for LED-related products declined in reaction to the steep rise and have entered a temporary
adjustment phase in the latter half of the fiscal year. Demand for C/C composite products rose sharply
overall partly as a result of the expansion of our customer base for C/C crucibles for the manufacture of
single crystal silicon and continued brisk demand for products for the manufacture of solar cells,
including orders from new customers. Orders for graphite sheet products, and particularly those forsemiconductor and solar cell-related applications, remained steady.

12