Translation

Member of the Financial Accounting Standards Foundation

April 12, 2012

Consolidated Financial Results for the Nine Months Ended February 29, 2012
[Japanese GAAP]
Listed company name:
Stock exchange listing:Stock code:
Location of headquarters:
Website:Representative:
Contact:

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)

TEL:
Scheduled date for submissionof quarterly report:
Scheduled date for dividend payment:
Supplementary materials for quarterly
financial summaries:
Quarterly financial results briefing:

April 13, 2012NoNo

1. Consolidated financial results for the nine months ended February 29, 2012
(From June 1, 2011 to February 29, 2012)(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%%

Nine months ended
30,073
9.0
February 29, 2012
Nine months ended
27,58942.4
February 28, 2011
Note:
Comprehensive income:Nine months ended February 29, 2012
Nine months ended February 28, 2011
Net income per shareyen
Nine months ended
February 29, 2012
Nine months ended
February 28, 2011146.40138.24

Recurring profit

Net income
%

%

5,290

21.6

5,380

29.5

3,035

5.9

4,349

276.7

4,154

319.0

2,866

386.5

2,962 million yen (up 38.9%)
2,133 million yen ( - %)Diluted net income
per shareyen-(2) Financial position(Millions of yen, rounded down)
Total assets

EquityEquity ratio%

As of February 29, 2012

68,18554,26077.4

As of May 31, 2011

65,191

51,74877.5

Reference: Shareholders’ equity
February 29, 2012
May 31, 2011

52,743 million yen
50,510 million yen

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

Second quarter end-

Third quarter end

Year-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)

Net sales

Operating profit%

Full year

40,000

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

%
6,300

7.4

%
6,300

12.2

4,000

%

yen

8.1

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

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 of the Attached Documents.
(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 of the Attached Documents.
(4) Number of shares outstanding (common stock)i. Number of shares outstanding and issued at the end of period (including treasury stock)
As of February 29, 2012
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 February 29, 2012
16,315 shares
As of May 31, 201116,265 sharesiii. Average number of shares during the period (quarterly cumulative total)
Third quarter ended February 29, 2012 20,734,414 shares
Third quarter ended February 28, 2011 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
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.

○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 events 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) Notes regarding the premise of a going concern ························································· 8(4) Segment information ·························································································· 8(5) Notes if the amount of shareholders’ equity has changed significantly ······························ 9
5. Supplementary Information ···················································································· 10(1) Orders and sales by product category ···································································· 10(2) Overview········································································································ 11

11. Qualitative Information Regarding Consolidated Results for the Quarter under Review(1) Qualitative Information Regarding Consolidated Operating Results
During the third quarter under review, the global economy on the whole gradually continued on its road torecovery, buttressed by economic growth in Asia and other emerging countries. The Japanese economy
showed visible signs of recovery as the impact of the Great East Japan Earthquake gradually waned. Afterthe summer months, however, concerns of an economic downturn in Japan and abroad have heightened, due
to the growing feeling of a slowdown in the global economy precipitated by the European debt crisis and theramifications of the historically strong yen.
Amid these circumstances, the Toyo Tanso Group concentrated its efforts on improving and expanding its
performance by more widely broadening its sales reach in general industrial and mechanical sectors in
addition to the environment and energy sectors, and also by shifting its focus to high value-added andhigh-profit goods. However, this performance momentum lost steam in early autumn as the solar cell market
entered an adjustment phase after a continuous period of rapid growth.
As a result, the Group’s business performance improved during the third quarter under review. Net sales
totaled 30,073 million yen (up 9.0% from the same term last year), operating profit 5,290 million yen (up21.6%), and recurring profit 5,380 million yen (up 29.5%). Net income for the quarter was 3,035 million yen(up 5.9%).
The overall performance of each business segment was as follows. (Please refer to “5. Supplementary
Information” for an overview of each product category.)Japan
Sales in Japan grew steadily on the whole, as the impact of the earthquake gradually waned and theeconomy began to recover with the absorption of reconstruction-related demand. As a result, net sales for thequarter in Japan were 15,039 million yen and operating profit was 2,603 million yen.
United States
Despite the impact of the strong yen, a recovery trend continued mainly in the sales of products for solar
cell and compound semiconductor applications. As a result, net sales for the quarter in the United States were2,273 million yen and operating profit came to 127 million yen.
EuropeSales in Europe, particularly of industrial furnace and brush products, fared relatively well despite theimpact of the strong yen and a stalling of demand for products for solar cell applications. As a result, net
sales for the quarter in Europe were 2,228 million yen and operating profit was 312 million yen.
Asia
Given the booming market particularly in China and other emerging countries, business in Asia grew at anexceedingly robust pace overall, with an upsurge in demand for our core products for solar cell applications
and expanded sales of products for metallurgical and other general industrial applications. Sales of products
for solar cell applications, however, took a dive in the third quarter. As a result, net sales for the quarter in
Asia were 10,532 million yen and operating profit was 2,510 million yen.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of February 29, 2012 increased by 2,993 million yen from the end of the previous
consolidated fiscal year. This increase is mainly attributable to the 368 million yen rise in trade notes andaccounts receivable from increased sales, the 2,478 million yen rise in inventories through the systematic
accumulation of intermediate stock, etc., and the 925 million yen rise in tangible fixed assets, which morethan compensated for the 1,125 million yen decrease in cash on hand and in banks after payment for theacquisition of tangible fixed assets, etc.
Total liabilities increased by 481 million yen from the end of the previous consolidated fiscal year. This is
primarily the result of a 467 million yen increase in trade notes and accounts payable due to increased
procurement of raw materials, etc. and a 1,034 million yen rise in accrued amount payable due to capital
investment, which eclipsed the 353 million yen decrease in interest-bearing debt and the 756 million yen
decrease in income taxes payable.
2

Total equity increased by 2,512 million yen from the end of the previous consolidated fiscal year. This net
increase chiefly stemmed from such factors as an increase of 2,579 million yen in retained earnings.
(3) Qualitative Information Regarding Consolidated Results Forecast
While there are views that domestic and overseas economic conditions going forward will continue on amild recovery path, the future outlook is dampened by a heightening sense of uncertainty stemming fromconcerns about a global economic downturn precipitated by a deepening of the European debt crisis andother such negative sentiments.
Conditions surrounding our Group are also marking time, due to the persistently strong yen and to ourmainstay solar cell market entering an adjustment phase. To make up for this temporary standstill, we will
make active efforts to expand sales in a broad range of sectors, including the robust general industrial andmachinery application sectors, while also pushing forward our strategies for medium and long-term growth.
In view of the above conditions and the fact that our business performance for the third quarter underreview moved forward as planned, no changes will be made to the consolidated results forecast for the full
fiscal year that was announced on October 13, 2011.
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 third 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 events 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)
Third quarterly consolidated
fiscal year
As of February 29, 2012
Amount

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

8,157,963
13,415,588
6,699,607
6,336,472
1,897,684
1,759,178(107,137)
38,159,357

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

7,304,791
11,817,529
5,721,485
1,461,114
783,286
27,088,207
857,875
2,079,826
30,025,910
68,185,267

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)
Third quarterly consolidated
fiscal year
As of February 29, 2012
Amount2,950,193
1,406,013
2,538,873
1,495,600
825,271

3,417,547
1,404,493
3,573,607
739,413518,984

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

2,258,046
11,912,092

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

313,164
621,136
271,247
807,233
2,012,781
13,924,874

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

7,692,575
9,534,686
37,748,631(57,783)
54,918,110

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

23,227(2,198,092)(2,174,865)
27,9001,489,247
54,260,392
68,185,267

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)Nine months ended February 29, 2012
(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
Gain on reversal of accrued legal claim
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on sale of investment securities
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
Payment of prior-year custom duties, etc.

Nine months ended
February 28, 2011
Amount27,589,092
18,726,356
8,862,736
4,512,976
4,349,760

Nine months ended
February 29, 2012
Amount30,073,497
19,854,260
10,219,237
4,929,010
5,290,226

21,191
5,941
73,07040,597140,800

30,819
11,14932,152
56,73952,808
183,669

36,352
288,626
10,799335,778
4,154,781

24,96046,97821,82393,7625,380,134-

1,200
63,46687,702400
88,10264,666

4,016
16,679894
51,790216,240-

23,894-

Total extraordinary losses

260,829

52,685

Profit before income taxes
Income taxes
Prior-year corporate taxes, etc.
Income before minority interests
Minority interests
Net income

3,982,054
900,800
3,081,254
214,953
2,866,300

5,392,116
1,483,296
540,2313,368,588
333,0213,035,566

6

(Quarterly consolidated statements of comprehensive income)Nine months ended February 29, 2012
(Thousands of yen, rounded down)Nine months ended
February 28, 2011
AmountNine months ended
February 29, 2012
AmountIncome before minority interests
Other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Foreign currency translation adjustments

3,081,254

3,368,588

5,491

20,286(953,560)(426,224)

Total other comprehensive income
Comprehensive income(948,069)
2,133,184(405,938)
2,962,649

2,018,001
115,183

2,688,843
273,806(Breakdown)Comprehensive income attributable to parent company
shareholders
Comprehensive income attributable to minority interests7(3) Notes regarding the premise of a going concern
Not applicable.
(4) Segment information
I. Nine months ended February 28, 2011 (From June 1, 2010 to February 28, 2011)
1. Information on net sales and the amount of profits and losses per reportable segment(Thousands of yen, rounded down)Amountrecorded in
the quarterly
consolidated
statement ofincome(Note) 2

Reportable segments
Adjusted
amount(Note) 1

Japan

UnitedStatesEurope

Asia

Total

(1) Sales to unaffiliated customers

15,000,114

2,160,597

2,260,984

8,167,396

27,589,092-(2) Intersegment sales or transfers

5,309,770

60,625

11,87596,462

5,478,734(5,478,734)

-

Total

20,309,885

2,221,222

2,272,860

8,263,858

33,067,826(5,478,734)

27,589,092

Segment profit (loss)

2,118,929(15,126)

308,807

1,534,913

3,947,524

402,235

4,349,760

Sales
27,589,092(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 quarterly consolidated statement ofincome.

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

Europe11,561,310

2,061,609

2,533,805

Asia(including
China)
11,218,117

41.9

7.5

9.2

40.6

Japan

Sales
Composition (%)

China only

Rest of
world

Total

7,723,321

214,248

27,589,092

28.0

0.8

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

8II. Third quarter under review (from June 1, 2011 to February 29, 2012)
1. Information on net sales and the amount of profits per reportable segment(Thousands of yen, rounded down)Amountrecorded in
the quarterly
consolidated
statement ofincome(Note) 2

Reportable segments

Japan

UnitedStatesEurope

Asia

Total

15,039,407

2,273,426

2,228,553

10,532,110

30,073,497

Adjusted
amount(Note) 1

Sales(1) Sales to unaffiliated customers-

30,073,497(2) Intersegment sales or transfers

6,736,902

275,877

38,914

57,1307,108,824(7,108,824)

-

Total

21,776,309

2,549,303

2,267,468

10,589,240

37,182,322(7,108,824)

30,073,497

2,603,780

127,768

312,753

2,510,953

5,555,257(265,030)

5,290,226

Segment profit(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 quarterly consolidated statement ofincome.

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

Europe11,699,265

2,219,106

2,535,107

Asia(including
China)
13,441,027

38.9

7.4

8.4

44.7

Japan

Sales
Composition (%)

China only

Rest of
world

Total

10,112,579

178,989

30,073,497

33.6

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

9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
Products

1Q

2Q

3Q

3Q
cumulative

4Q

Fiscal
year
total

1Q

2Q

3Q

3Q
cumulative

Special graphite products
Carbon products forgeneral industries(for mechanicalapplications)
Carbon products forgeneral industries(for electrical applications)Compound materials andother products
Total

4,900

4,413

5,285

14,6006,158

20,758

6,154

5,440

3,265

14,859

628

686

699

2,015

841

2,856

860

740

726

2,327

1,190

1,003

1,217

3,411

967

4,379

1,085

821

1,072

2,978

2,462

2,093

2,144

6,700

2,549

9,249

2,121

1,880

1,749

5,750

9,182

8,197

9,347

26,727

10,51637,243

10,221

8,882

6,813

25,916ii. Outstanding orders
Products
Special graphite products
Carbon products for generalindustries(for mechanical applications)
Carbon products for generalindustries(for electrical applications)Compound materials and otherproducts
Total

Year ended May 31, 2011
1Q
2Q
3Q
3,336
3,328
3,834

(Unit: millions of yen)
Year ending May 31, 2012
1Q
2Q
3Q
4,956
4,494
3,712

4Q
4,787

418

464

512

648

748

731

706

679

648

947

1,030

1,128

1,017

1,176

4,406

3,865

3,799

3,930

3,508

3,055

2,612

8,840

8,307

9,094

10,397

10,342

9,299

8,208

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

Year ended May 31, 2011
Products

1Q

2Q

3Q

3Q
cumulative

4Q

Fiscalyear total

1Q

2Q

Special graphite products

4,551

4,681

5,031

14,264

5,598

19,863

5,972

5,795 4,173

15,941

2,611

2,630

2,983

8,225

3,506

11,731

3,649

3,565 1,855

9,070

1,737

1,844

1,810

5,392

1,846

7,238

2,035

1,946 1,972

5,954

203

206

237

647

245

893

287

283

346

916

625

678

684

1,987

741

2,728

793

796

785

2,375

1,128

1,063

955

3,146

935

4,082

1,012

959

953

2,925

2,423

2,648

2,234

7,306

2,427

9,734

2,961

2,785 2,401

8,149

2,124
298
325
9,054

2,257
391
287
9,358

1,838
395
270
9,175

6,220
1,085
883
27,589

2,070
357
265
9,968

8,290 2,600 2,437 1,977
1,443
361
348
424
1,149
235
222
223
37,557 10,976 10,559 8,538

7,015
1,133
681
30,073[Electronics
applications][General industries
applications][Others]
Carbon products forgeneral industries(for mechanicalapplications)
Carbon products forgeneral industries(for electricalapplications)Compound materials
and other products[3 major products][Other products]
Related goods
Total

10

3Q

3Q
cumulative

(2) Overview
Special graphite products
Products for solar cell applications, which comprise our core applications, supported overall demand in
the electronics applications category until the second quarter, but have entered a major adjustment phase inautumn, as has been expected. Demand for products for the manufacture of single crystal silicon continued
to flag, in reflection of the sluggish semiconductor industry.
In the general industrial applications category, demand for special graphite products maintained its
steady trend, supported by economic recovery in Japan and economic growth in emerging countries. As aresult, relatively strong demand was created for automotive products and products for industrial furnaces
and metallurgical applications in domestic and overseas markets.
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 products for small motors intended for
vacuum cleaners and electric power tools remained largely unchanged, due to increasing competition in
our mainstay Chinese market and the impact of the strong yen.
Compound materials and other products
Sales of SiC (silicon carbide)-coated graphite products grew sluggish on the whole. Although theirdemand had seemed to bottom out, the adjustment of LED products in reaction against their surging
growth is taking longer than expected. In the C/C composite products category, demand for products forindustrial furnaces and semiconductors fared strongly, while products for solar cells lost their steady
momentum in the third quarter. In the graphite sheet products category, sales of semiconductor products
failed to pick up, but overall performance remained strong, supported by steady demand for automotive
products.

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