Translation

Member of the Financial Accounting Standards Foundation

April 12, 2011

Consolidated Financial Results for the Nine Months Ended February 28, 2011
[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
Toshimi Boki, Executive Officer, General Manager,
Finance and Accounting Department
81-6-6451-2114 (from overseas)
April 14, 2011
Yes
No

1. Consolidated financial results for the nine months ended February 28, 2011
(From June 1, 2010 to February 28, 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%

Nine months ended
February 28, 2011
Nine months ended
February 28, 2010

Recurring profit%

Net income%%

27,589

42.4

4,349

276.7

4,154

319.0

2,866

386.5

19,370(21.1)

1,154(74.2)

991(75.8)

589(75.6)Net income per share

Nine months ended
February 28, 2011
Nine months ended
February 28, 2010

Diluted net income
per share

yen

yen

138.24

-

28.41

28.41

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

EquityEquity ratio

Equity per share%yen

As of February 28, 2011

62,69050,60278.8

2,383.87

As of May 31, 2010

61,786

48,96077.4

2,306.55

Reference: Shareholders’ equity
February 28, 2011
May 31, 2010

49,428 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: None

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 February 28, 2011
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 February 28, 201116,215 shares
As of May 31, 2010
16,215 sharesiii. Average number of shares during the period (quarterly cumulative total)
Third quarter ended February 28, 2011 20,734,473 shares
Third quarter ended February 28, 2010 20,734,507 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 events regarding the premise of a going concern ······································································ 3
3. Consolidated Quarterly Financial Statements········································································· 4(1) Consolidated quarterly balance sheets······························································································· 4(2) Consolidated quarterly statements of income ··················································································· 6(3) Consolidated quarterly statements of cash flows·············································································· 7(4) Notes regarding the premise of a going concern ··············································································· 8(5) Segment information ···························································································································· 8(6) Notes if the amount of shareholders’ equity has changed significantly·········································· 9
4. Supplementary Information···································································································· 10(1) Orders and sales by product category······························································································ 10(2) Overview ···············································································································································1111. Qualitative Information Regarding Consolidated Results for the Quarter under Review(1) Qualitative Information Regarding Consolidated Operating Results
During the third quarter under review, concerns over such factors as fiscal conditions in Europe and rising
raw fuel prices weighed on the global economy, but steady steps toward economic recovery were supported
by economic growth in Asia and emerging countries, and by the effects of economic stimulus measures ineach country. The Japanese economy also continued its general recovery trend as a result of the improvement
in exports and production and recovery of capital investment. However, it came to a temporary standstill in
the latter half of the quarter owing to the impact of the rising yen and reaction to the reduction of economic
stimulus measures.
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 third quarter under review,despite the impact of the rising yen and the increased burden of depreciation expenses. Net sales totaled
27,589 million yen (up 42.4% from the same term last year), operating profit 4,349 million yen (up 276.7%),
and recurring profit 4,154 million yen (up 319.0%). Net income for the quarter was 2,866 million yen (up386.5%).
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, C/C composite 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 15,000
million yen and operating profit was 2,118 million yen.
United States
Despite the continued large impact of the strong yen, the recovery of business performance in the UnitedStates gradually gained momentum primarily driven by demand for compound semiconductor and solar
cell-related products. As a result, net sales for the quarter in the United States were 2,160 million yen andoperating loss came to 15 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 2,260 million yen and operating
profit was 308 million yen.
Asia
Owing to robust growth in demand particularly for solar cell and compound semiconductor-related
products, products for all related applications enjoyed a dramatic expansion in sales. As a result, net sales forthe quarter in Asia were 8,167 million yen and operating profit was 1,534 million yen.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets as of February 28, 2011 increased by 904 million yen from the end of the previous fiscal year.
This increase is mainly attributed to an increase of 1,528 million yen in trade notes and accounts receivable
resulting from an increase in net sales, and an increase of 1,117 million yen in inventory through thesystematic accumulation of intermediate stock, etc., despite posting a decrease of 1,903 million yen intangible fixed assets due to depreciation expenses.
Total liabilities decreased by 737 million yen from the end of the previous fiscal year. This was mainly
caused by the decrease in notes payable-equipment of 1,376 million yen and a decrease in the accrued
amount payable of 942 million yen. This offset the 358 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, 684
million yen in accrued income taxes, etc., and the 459 million yen rise in interest-bearing debt resulting from2the payment for the purchase of tangible fixed assets, etc.
Total equity increased by 1,641 million yen from the end of the previous fiscal year. This was primarily
due to an increase of 2,451 million yen in retained earnings, which eclipsed the decrease in the amount of
853 million yen in foreign currency translation adjustments.
(3) Qualitative Information Regarding Consolidated Results Forecast
Regarding our forecasts of consolidated earnings for the fiscal year ending May 31, 2011, the numericalvalues are unchanged from those announced on January 13.
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 third 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 second quarter.
(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 third 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 for the third quarter under review
decreased by 6 million yen each, and profit before taxes decreased by 223 million yen. Additionally,
asset retirement obligations changed in the amount of 275 million yen with the application of theabove accounting standard.
Changes in method of presentation
Consolidated quarterly statements of income
The consolidated quarterly financial statement for the third 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).

(4) Key events regarding the premise of a going concern
None33. Consolidated Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Thousands of yen, rounded down)
As of February 28, 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

As of May 31, 2010
Amount8,183,161
12,184,738
4,679,325
6,052,287
1,296,513
1,433,024(145,606)
33,683,443

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

7,376,528
12,481,072
5,293,554
585,266
650,602
26,387,024
790,776
1,829,719
29,007,521
62,690,965

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 February 28, 2011
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
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

5

As of May 31, 2010
Amount2,720,557
1,769,687
2,406,201
864,942508,986
1,277,788
9,548,163

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

802,842
675,332
277,123
785,449
2,540,748
12,088,911

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

7,692,575
9,534,686
34,335,950(57,408)

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

7,333(2,084,824)
49,428,312
16,7401,156,999
50,602,053
62,690,965

1,842(1,231,034)
47,825,002
6,696
1,128,557
48,960,255
61,786,229

(2) Consolidated quarterly statements of income
Nine months ended February 28, 2011
(Thousands of yen, rounded down)Nine months ended
February 28, 2010
Amount19,370,002
14,056,401
5,313,600
4,158,951
1,154,649

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

37,41653,73755,964
59,412
206,530

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

27,352286,201
31,60024,332369,487
991,692

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

33,916
63,916
27,40421,028146,265

87,702400
88,102273
10,418

4,016
16,679-216,240-

23,894

10,691

260,829

Profit before income taxes

1,127,266

3,982,054

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

539,386(28,543)
27,290589,132

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

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
Payment of prior-year custom duties, etc.
Total extraordinary losses6(3) Consolidated quarterly statements of cash flows(Thousands of yen, rounded down)Nine months ended
February 28, 2010
AmountCash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill

Nine months ended
February 28, 2011
Amount1,127,266
2,503,757
8,179
236,214(21,028)

3,982,054
3,643,927
8,179
92,426--216,240

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
Decrease in long-term accrued amount payable (directors’
retirement allowance)
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 fixed assets
Loss on disposal and sale of 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(2,700)-(307,185)(35,840)(103,003)(91,154)
27,352286,201
31,600(33,916)
10,691(1,171,070)(1,406,199)
623,043
277,825
1,960,036(200,995)
44,861(27,132)
36,352
288,626(2,074)(87,702)
20,695(2,018,466)(1,391,780)
654,582
32,591
5,292,386

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

101,135(25,079)(22,539)
2,013,551

25,530(33,436)(351,893)
4,932,586

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(4,454,774)
9,602,234(5,192,799)
133,728(517,302)
8,613(420,298)(1,156,576)
1,184,343(4,528,526)
166,681(27,915)(119,372)(4,481,366)

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(328,363)
559,714(150,670)(3,930)(410)(413,759)(83,468)(316,910)
1,187,783(314,674)(15,841)(413,685)(86,740)

Net cash provided by (used in) financing activities(420,889)

39,931

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(135,029)
1,037,334
6,412,364
7,449,698(167,853)
323,297
5,802,412
6,125,710

7

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

(5) Segment information[Business Segment Information]
From June 1, 2009 to February 28, 2010
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]
Nine months ended February 28, 2010 (From June 1, 2009 to February 28, 2010)(Thousands of yen, rounded down)
Japan

North
America

Europe

Asia

Total

Corporateand elim.

Consolidated(1) Sales to unaffiliated customers

10,495,497

1,725,456

1,863,860

5,285,188(2) Intersegment sales or transfers

3,701,055

17,851

1,301

72,614

19,370,002-

19,370,002

3,792,823(3,792,823)

-

Total

14,196,552

1,743,307

1,865,161

Operating profit (loss)(64,813)(34,834)

77,7885,357,803

23,162,826(3,792,823)

19,370,002

855,914834,055

320,593

1,154,649

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]
Nine months ended February 28, 2010 (From June 1, 2009 to February 28, 2010)(Thousands of yen, rounded down)

I

Overseas sales

II

Consolidated sales

III

Overseas sales as a proportion of consolidated sales (%)

North
America

EuropeAsia

Rest of
world

Total

1,651,169

2,151,906

7,025,574

135,572

10,964,223

8.5

11.1

36.3

0.7

19,370,002
56.6(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.

82. Information on net sales and the amount of profits and losses per reportable segment
Third quarter under review (from June 1, 2010 to February 28, 2011)(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

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 consolidated quarterly statement ofincome.

3. Regional information
Third quarter under review (from June 1, 2010 to February 28, 2011)(Thousands of yen, rounded down)
Asia
Japan

Sales

11,561,310

North
America

Europe2,061,609

2,533,805

Asia(including
China)
11,218,117

Rest of
world

Total

China only
7,723,321

214,248

27,589,092(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.

9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
1Q

2Q

3Q

3Q
cumulative

4,349

Fiscalyear
total
14,062

4,900

4,413

5,285

14,600

1,593

630

2,223

628

686

699

2,015

891

2,644

1,216

3,861

1,190

1,003

1,217

3,411

1,297

2,627

5,640

4,011

9,652

2,462

2,093

2,144

6,700

5,958

7,747

19,592

10,207

29,799

9,182

8,197

9,347

26,727

3Q
cumulative

Products

1Q

2Q

3Q

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

2,530

3,539

3,643

9,713

484

523

585

1,155

598

1,715
5,885

4Q

ii. Outstanding orders
Year ended May 31, 2010
1Q
2Q
3Q
1,522
1,686
2,030

Products
Special graphite products
Carbon products for generalindustries(for mechanical applications)
Carbon products for generalindustries(for electrical applications)Compound materials and otherproducts
Total(Unit: millions of yen)
Year ending May 31, 2011
4Q
2,637

1Q
3,336

2Q
3,328

3Q
3,834

282

306

344

382

418

464

512

613

414

387

616

679

648

947

1,560

1,728

2,789

3,983

4,406

3,865

3,799

3,978

4,136

5,551

7,620

8,840

8,307

9,094

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

Year ended May 31, 2010
1Q

2Q

3Q

4,186

Fiscalyear
total
14,184

4,551

4,681

5,031

14,264

4,977

2,079

7,057

2,611

2,630

2,983

8,225

1,547

4,350

1,840

6,190

1,737

1,844

1,810

5,392

235

220

669

267

936

203

206

237

647

537

504

565

1,606

663

2,269

625

678

684

1,987

884

1,030

970

2,885

1,046

3,931

1,128

1,063

955

3,146

1,442

1,318

1,456

4,217

2,494

6,711

2,423

2,648

2,234

7,306

1,230
212
163
5,986

1,118
199
292
6,659

1,268
187
206
6,723

3,617
599
663
19,370

2,184
309
164
8,554

5,802
908
827
27,924

2,124
298
325
9,054

2,257
391
287
9,358

1,838
395
270
9,175

6,220
1,085
883
27,5893Q
cumulative

Products

1Q

2Q

3Q

Special graphite products[Electronics
applications][General industries
applications][Others]
Carbon products forgeneral industries(for mechanicalapplications)
Carbon products forgeneral industries(for electricalapplications)Compound materials andother products[3 major products][Other products]
Related goods
Total

2,958

3,514

3,525

9,998

1,437

1,783

1,757

1,307

1,495

213

10

4Q

3Q
cumulative

(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 continued to level off in light of the temporary lull in thedomestic semiconductor industry.
Demand for special graphite products for general industries applications remained strong on the whole,
thanks largely to the continued increase in overseas demand for our mainstay products for electricaldischarge machine (EDM) electrodes and metallurgical applications in line with the economic recovery.
This increase offset the impact of the slight stagnation in domestic sales.
Carbon products for general industries
Demand for carbon products for mechanical applications continued to recover gradually along with theeconomic recovery. Although domestic sales of these products increased only slightly due to theappreciation of the yen, overseas sales rose 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 generally steady both at home and abroad. However,
over the second half of the fiscal year, demand for the products in China slowed down and sales of carbon
products for automobiles, such as fuel pumps, were stagnant in Japan partly in reaction to the end of thesubsidy program for eco-friendly cars.
Compound materials and other products
Demand for SiC (silicon carbide)-coated graphite products remained high, 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 remained high,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, includingorders from new customers. Despite fluctuations in each term depending on the number of large-scaleorders, orders for C/C composite products are likely to remain brisk. Orders for graphite sheet products,
and particularly those for semiconductor and solar cell-related applications, remained steady.

11