Translation

Member of the Financial Accounting Standards Foundation

April 7, 2008

Consolidated Financial Results
for the Nine Months Ended February 29, 2008
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
Junko Kondo, President & Chief Operating Officer
Toshimi Boki, Executive Officer, General Manager,
Accounting Department
81-6-6451-2114 (from overseas)
ir@toyotanso.co.jp

TEL:
E-mail:1. Consolidated financial results for the nine months ended February 29, 2008
(From June 1, 2007 to February 29, 2008)(1) Operating results(Millions of yen, rounded down)
Percentages indicate changes from the same period in the previous fiscal year.
Net sales

Operating profit

Recurring profit%
Nine months ended
February 29, 2008
Nine months ended
February 28, 2007
Year ended May 31, 2007

Net income

%

%

%

25,676

13.2

6,029

22.1

5,680

11.8

3,516

18.3

22,686

23.6

4,937

41.1

5,083

39.1

2,971

49.9

31,381

6,925

Net income per share

Nine months ended
February 29, 2008
Nine months ended
February 28, 2007
Year ended May 31, 2007

7,123

4,439

Diluted net income
per share

yen

yen

168.96-222.99-329.65-

Note: The Company made a 1.5-for-1 split of its common stock on June 1, 2007.

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

EquityEquity ratio

Equity per share%yen

As of February 29, 2008

56,19545,09978.8

2,133.84

As of February 28, 2007

48,64534,47270.1

2,558.69

As of May 31, 2007

54,83041,38674.8

2,964.32

Note: The Company made a 1.5-for-1 split of its common stock on June 1, 2007.

1

(3) Cash flows
Cash flows fromoperating activities

Nine months ended
February 29, 2008
Nine months ended
February 28, 2007
Year ended May 31, 2007

(Millions of yen, rounded down)
Cash and cash
Cash flows fromequivalents at end of
financing activities
periodCash flows frominvesting activities

4,123(8,082)(1,206)

6,471

2,659

(2,679)

(976)

3,907

4,993

(1,635)

3,292

11,558

2. Consolidated results forecast for the fiscal year ending May 31, 2008 [Reference](Millions of yen)
Percentages indicate changes from the same period in the previous fiscal year.
Net income
Operating profit
Recurring profit
Net income
per share

Net sales
%

%

%

%

yen

Year ending May 31,
33,8007.78,000 15.5
7,700
8.1
4,700
5.9
226.062008
Note: Consolidated results forecast for the fiscal year has been revised from these announced on July 17, 2007. Please refer to 3.
Qualitative information regarding results forecast, [Qualitative information and financial statements] on page 5.

3. Others(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries accompanying changes in scope of consolidation):(2) Adoption of simple methods in accounting procedures:

None

Yes

(3) Changes in accounting procedures from the most recent fiscal year:

None

Note: For details, please refer to 4. Others, [Qualitative information and financial statements] on page 5.

2

Reference: SUMMARY OF NON-CONSOLIDATED FINANCIAL STATEMENTS

1. Non-consolidated financial results for the nine months ended February 29, 2008
(From June 1, 2007 to February 29, 2008)(1) Operating results(Millions of yen, rounded down)
Percentages indicate changes from the same period in the previous fiscal year.
Net sales

Operating profit

Recurring profit%
Nine months ended
February 29, 2008
Nine months ended
February 28, 2007
Year ended May 31, 2007

Net income

%

%

%

19,169

10.7

3,563

(3.2)

3,358

(13.1)

2,100

(9.7)

17,316

17.3

3,682

41.5

3,863

35.8

2,327

55.0

23,8074,960

Net income per share

Diluted net income
per share

Nine months ended
February 29, 2008
Nine months ended
February 28, 2007
Year ended May 31, 2007

5,191

yen

yen

101.29-174.63-254.17-

3,408

Note: The Company made a 1.5-for-1 split of its common stock on June 1, 2007.

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

EquityEquity ratio

Equity per shareyen%
As of February 29, 2008

47,17439,02682.7

1,882.14

As of February 28, 2007

41,23430,68974.4

2,302.86

As of May 31, 2007

47,21337,15378.7

2,687.12

Note: The Company made a 1.5-for-1 split of its common stock on June 1, 2007.

2. Non-consolidated results forecast for the fiscal year ending May 31, 2008
(Millions of yen)
Percentages indicate changes from the same period in the previous fiscal year.
Net income
Operating profit
Recurring profit
Net income
per share

Net sales
%

%

%

%

yen

Year ending May 31,
26,000
9.2
4,900
(1.2)
4,700
(9.5)
2,900 (14.9)
139.852008
Note: Consolidated results forecast for the fiscal year has been revised from these announced on July 17, 2007. Please refer to 3.
Qualitative information regarding results forecast, [Qualitative information and financial statements] on page 5.

* Disclaimer regarding appropriate use of forecasts and related points of note
The above forecasts are based on information available at the time of the release of this report. Actual results may differ fromthe projected figures due to a variety of factors.

3

[Qualitative information and financial statements]
1. Qualitative information regarding consolidated operating results
During the nine months ended February 29, 2008, the Japanese economy remained on a path ofmoderate growth supported by strong capital expenditures and exports in spite of negative factors such as therecord-setting surge in the prices of crude oil and raw fuels and the worldwide turmoil in the financial
markets stemming from the subprime mortgage loan crisis. Meanwhile, the economies of other countries
generally remained robust thanks to favorable economic conditions in Asia.
Under these circumstances, the Toyo Tanso group met strong demand from Asia as well as fromdomestic and other foreign customers by expanding its production capacity to 11,000 tons annually by theend of the first six months of the fiscal year for isotropic graphite, its mainstay product, and accelerating its
global advance. In addition, the Toyo Tanso group made progress in its continued shift to growth sectors andits quest for high added value and worked towards the further business expansion and higher profits. Special
graphite, another main product, sold well on the whole thanks to its use in the electronics sector. Itsapplication in the manufacture of 300 mm wafers and other single crystal silicon continued to increase andits demand as part of the solar cell manufacturing process in particular grew sharply both in Japan andoverseas. Further, demand for special graphite products, mainly EDM (electrical discharge machining)
electrodes also expanded in general industries sector. Carbon products for general industries demonstrated
favorable growth for mechanical and electrical applications, and compound materials and other important
products such as SiC (silicon carbide)-coated graphite and C/C composite fared well.
As a result, the Toyo Tanso group continued to achieve increases in sales and profits in the nine months
ended February 29, 2008, in spite of negative factors such as a sharp appreciation of the yen and a significant
increase in depreciation cost. Specifically, net sales grew 13.2% from the same period in the previous year to25,676 million yen, operating profit increased 22.1% to 6,029 million yen, recurring profit rose 11.8% to
5,680 million yen and net income increased 18.3% to 3,516 million yen.
(Thousands of yen)
Products
Special graphite products
Carbon products for generalindustries(for mechanical applications)
Carbon products for generalindustries(for electrical applications)Compound materials and otherproducts
Related goods
Total

Nine months ended
February 29, 2008
13,292,404

Nine months ended
February 28, 2007
11,369,827

2,150,521

1,938,151

2,682,927

3,657,873

3,147,718

4,257,378

5,722,286

5,555,431

7,555,069

853,821
25,676,907

675,612
22,686,738

969,511
31,381,259

Year ended May 31, 2007
15,916,373

2. Qualitative information regarding the consolidated financial position
Total assets as of February 29, 2008 increased 1,364 million yen from the end of the previous fiscal year
thanks mainly to a hike of 877 million yen in inventory and of 1,145 million yen in tangible fixed assets,attributable to an increase in production equipment.
Total liabilities decreased 2,348 million yen from the end of the previous fiscal year due to a decrease of
1,210 million yen in income taxes payable and of 1,115 million yen in long-term borrowings. Also, equity
increased 3,713 million yen from the end of the previous fiscal year due to an increase of 3,407 million yen
in retained earnings.

4

3. Qualitative information regarding results forecast
Business results for the nine months ended February 29, 2008 were favorable according to plan, however,forecast for the entire fiscal year announced on July 17, 2007 has been revised as shown below due to arevision of assumed currency exchange rates brought upon by their recent sharp fluctuation.
(Assumed currency exchange rates: ¥110/US$ → ¥100/US$; ¥148/EUR → ¥155/EUR)(Millions of yen)
Net sales
Forecast for Year ending May 31,
2008(Announced on July 17, 2007)
Forecast for Year ending May 31,
2008(Revised)

Operating profit

Recurring profit

Net income

34,300

8,200

8,100

5,000

33,800

8,000

7,700

4,700

Change amount

(500)

(200)

(400)

(300)

Change rate (%)

(1.5)

(2.4)

(4.9)

(6.0)

[Reference] Non-consolidated results forecast for the fiscal year ending May 31, 2008
(Millions of yen)
Net sales
Forecast for Year ending May 31,
2008(Announced on July 17, 2007)
Forecast for Year ending May 31,
2008(Revised)

Operating profit

Recurring profit

Net income

26,000

5,200

5,200

3,200

26,000

4,900

4,700

2,900

Change amount

-

(300)

(500)

(300)

Change rate (%)

-

(5.8)

(9.6)

(9.4)

4. Others(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries accompanying changes in scope of consolidation):

None(2) Adoption of simple methods in accounting procedures:
Yes
Simple methods in accounting procedures are partially adopted in calculation standards of income taxes
and others which effect slightly.
(3) Changes in accounting procedures from the most recent fiscal year:

5

None

(Summary of consolidated balance sheets)(Thousands of yen, rounded down)
As of February 29, 2008 (A)Amount%As of February 28, 2007
Amount%As of May 31, 2007 (B)Amount%Change (A)-(B)AmountAssetsI. Current assets
1. Cash on hand and in banks

12,821,767

9,073,920

14,775,343(1,953,575)

2. Trade notes and accounts receivable

10,343,456

9,151,100

9,942,492

400,963

3. Inventory

7,450,784

6,397,817

6,573,737

877,046

4. Other

1,367,660

1,783,554

1,719,083(351,423)

Allowance for doubtful accounts
Total current assets(159,128)
31,824,540(135,532)
56.6

26,270,859(157,729)
54.0

32,852,928(1,399)59.9(1,028,388)

II. Fixed assets
1. Tangible fixed assets(1) Buildings and structures(2) Machinery, equipment, andvehicles(3) Land

5,522,094

5,242,014

5,417,130

104,964

8,647,148
5,272,759

5,628,208
5,333,381

7,161,900
5,282,468

1,485,248(9,709)(4) Construction in progress

830,404

2,677,912

1,164,853(334,449)(5) Other

506,369

396,036

606,658(100,289)

Total tangible fixed assets
2. Intangible fixed assets

20,778,775

37.0

19,277,552

39.6

19,633,011

35.8

1,145,764

364,633

0.6

281,7240.6

287,026

0.5

77,606

3. Investments and other assets(1) Investments in securities

849,433

413,544405,341(2) Deferred tax assets

466,328

464,751

560,908(94,579)

1,915,617

1,940,232

1,094,971

820,645(4,272)(3,623)(3,543)(729)(3) Other
Allowance for doubtful accounts

444,091

Total investments andother assets
Total fixed assets

3,227,107
24,370,516

5.8
43.4

2,814,905
22,374,182

5.8
46.0

2,057,678
21,977,717

3.8
40.1

1,169,428
2,392,799

Total assets

56,195,057

100.0

48,645,041

100.0

54,830,645

100.0

1,364,411

6

(Thousands of yen, rounded down)
As of February 29, 2008 (A)Amount%As of February 28, 2007
Amount%As of May 31, 2007 (B)Amount%Change (A)-(B)AmountLiabilities
I. Current liabilities
1.

Trade notes and accounts payable

2,879,228

2,740,417

2,338,453

540,7742.

Short-term borrowings

1,759,308

2,903,123

2,064,995(305,687)

3.
4.

Reserve for employees’ bonuses
Reserve for directors’ andcorporate auditors’ bonuses
Other514,954414,665

813,835(298,881)

40,914
4,018,159

5,394,106

54,5525,589,952(13,638)(1,571,792)

Total current liabilities

9,212,564

5.

16.4

11,452,313

23.5

10,861,789

19.8(1,649,224)

II. Long-term liabilities
1. Long-term borrowings
2. Reserve for employees’ retirement
benefits
3. Reserve for directors’ retirement
allowances
4. OtherEquity1.
2.
3.

506,579

1,426,948

1,231,020(724,441)

197,376

250,702

195,069

2,307

1,178,568

2,000
1,040,831

2,300
1,153,872(2,300)24,696

Total long-term liabilities

1,882,525

3.3

2,720,482

5.6

2,582,262

4.7(699,737)

Total liabilities

11,095,090

19.7

14,172,796

29.1

13,444,052

24.5(2,348,961)

Common Stock

7,692,575

13.7

5,000,075

10.3

7,692,575

14.0-

Capital surplus
Retained earnings

9,534,686
26,930,653

17.0
47.9

6,842,786
22,055,064

14.1
45.3

9,534,686
23,522,911

17.4
42.9

3,407,741(52,738)(0.1)(9,205)(0.0)(9,314)(0.0)(43,423)

7,254

0.0

26,7510.0

25,3090.1(18,054)

4. Treasury stock - at cost
5. Unrealized gains (losses) on
available-for-sale securities
6. Foreign currency translation
adjustments

133,655

0.3

183,1710.4

220,200

0.4(86,545)

Total
Minority interests

44,246,088
853,879

78.8
1.5

34,098,645
373,600

70.1
0.8

40,986,368
400,22474.8
0.7

3,259,719
453,654

Total equity

45,099,967

80.3

34,472,245

70.9

41,386,593

75.5

3,713,373

Total liabilities and equity

56,195,057

100.0

48,645,041

100.0

54,830,645

100.0

1,364,411

7

(Summary of consolidated statements of income)(Thousands of yen, rounded down)Nine months ended
February 28, 2007 (B)Nine months ended
February 29,2008 (A)AmountI. Net sales
II. Cost of goods sold
Gross profit
III. Selling, general and administrative
expenses
Operating profit
IV. Non-operating income
1. Interest income
2. Net realized gain on crude oilswap contracts
3. Foreign exchange gains
4. Other
Total non-operating income
V. Non-operating expenses
1. Interest expenses
2. Net realized loss on crude oilswap contracts
3. Foreign exchange loss
4. Stock issuing expenses
5. Valuation loss on investment
securities based on method inwhich valuation losses arerecognized as net loss
6. Other
Total non-operating expenses%

AmountYear ended
May 31, 2007

Change (A)-(B)%AmountAmount%25,676,907
15,054,465

100.0
58.6

22,686,738
13,737,149

100.0
60.6

2,990,169
1,317,315

31,381,259
18,853,152

100.0
60.1

10,622,442

41.4

8,949,588

39.4

1,672,853

12,528,106

39.9

4,593,146
6,029,295

17.9
23.5

4,011,872
4,937,716

17.7
21.7

581,274
1,091,579

5,602,463
6,925,643

17.8
22.1

63,00031,51031,49048,503

79,99645,682
188,679

60,475
150,790
67,904
310,680

19,520(150,790)(22,222)(122,001)

72,326
220,951
83,615425,397

0.7

1.4

58,08282,964(24,882)

111,956

52,396315,680

67,243-(14,847)
315,680

72,152----

32,92386,502
24,451

14,97886,502
9,473

7,686
2,495

1.3

537,1132.1

165,1860.7

371,926

227,212

0.7

Recurring profit
VI. Extraordinary profit
1. Gain on sale of fixed assets
2. Gain on transfer to defined
contribution pension plan
3. Gain on sale of investment
securities
4. Subsidies received

5,680,861

22.1

5,083,210

22.4

597,650

7,123,828

22.7

Total extraordinary profit
VII. Extraordinary losses

109,970

1. Loss on disposal of fixed assets
2. Loss on sale of fixed assets
3. Loss on sale of investment
securities
4. Valuation loss on investment
securities
5. Special retirement benefit
expenses
Total extraordinary losses

1,305

1,263

41

28,236-405,906(405,906)

405,906

13,50095,164987
46,607

12,512
48,557987
151,426(344,795)

586,5560.4

454,765

2.0

55,147
4,262

31,603367

23,543
3,895

76,592
3,975

-

1,081

(1,081)

1,127

779

-

779

-

1.8

60,1880.2

33,0520.1

27,136113,698
195,394

0.6

5,730,642
1,965,962

22.3
7.6

5,504,923
2,476,260

24.3
10.9

225,718(510,297)

7,514,989
2,989,167

23.9
9.5

Minority interests

248,675

1.0

56,927

0.3

191,747

86,2380.3

Net income

3,516,004

13.7

2,971,735

13.1

544,268

4,439,582

14.1

Profit before income taxes
Income taxes

8

(Consolidated statement of changes in equity)
Nine months ended February 29, 2008 (From June 1, 2007 to February 29, 2008)(Thousands of yen, rounded down)

Balance as of May
31, 2007

CommonStockCapitalsurplusRetainedearnings

7,692,575

9,534,686

23,522,911

Treasurystock(9,314)

Unrealized
gains(losses) on
availablefor-salesecurities

Foreigncurrencytranslation
adjustments

25,309220,200

Total

Minority
interests

Total
equity40,986,368

400,224

41,386,593

Changes during
the period
Increase inconsolidated
retained earnings
due to increase in
number of
consolidated
subsidiaries

74,01674,01674,016

Dividends fromretained earnings(165,918)(165,918)(165,918)

Employees’
bonuses fromprofit (*)(16,361)(16,361)(16,361)

Net income

3,516,004

3,516,004

3,516,004(43,423)(43,423)

Acquisition oftreasury stock(43,423)

Net changes in
items other thanshareholders’equity during theperiodTotal changes during
the period
Balance as ofFebruary 29, 2008(*)

(18,054)(86,545)(104,599)

453,654

349,055--

3,407,741(43,423)(18,054)(86,545)3,259,719

453,654

3,713,373

7,692,575

9,534,686

26,930,653(52,738)

7,254

133,655

44,246,088

853,879

45,099,967

Employees’ bonuses appropriated upon resolution of profit appropriation by the Company’s subsidiaries in China and Taiwan.

9Nine months ended February 28, 2007 (From June 1, 2006 to February 28, 2007)(Thousands of yen, rounded down)

Balance as of
May 31, 2006

CommonStockCapitalsurplusRetainedearnings

5,000,075

6,842,786

19,223,421

Treasurystock(9,205)

Unrealized
gains(losses) on
availablefor-salesecurities

Foreigncurrencytranslation
adjustments

31,830(228,547)

Total

Minority
interests

Total
equity30,860,361

317,319

31,177,680

Changes during
the period
Dividends fromretained earnings
Employees’
bonuses fromprofit (*)
Net income(133,265)(133,265)(133,265)(6,826)(6,826)(6,826)

2,971,735

2,971,735

2,971,735

Net changes in
items other thanshareholders’equity during theperiodTotal changes during
the period
Balance as ofFebruary 28, 2007(*)

(5,078)411,719

406,640

56,281

462,921--

2,831,643-(5,078)411,7193,238,283

56,281

3,294,565

5,000,075

6,842,786

22,055,064(9,205)26,751

183,171

34,098,645

373,600

34,472,245

Employees’ bonuses appropriated upon resolution of profit appropriation by the Company’s subsidiaries in China and Taiwan.

10Year ended May 31, 2007 (From June 1, 2006 to May 31, 2007)(Thousands of yen, rounded down)

Balance as of May
31, 2006

CommonStockCapitalsurplusRetainedearnings

5,000,075

6,842,786

19,223,421

2,692,500

2,691,900

Treasurystock(9,205)

Unrealized
gains(losses) on
availablefor-salesecurities

Foreigncurrencytranslation
adjustments

31,830(228,547)

Total

Minority
interests

Total
equity30,860,361

317,319

31,177,680

Changes during theperiodIssuance of new
stock
Dividends fromretained earnings
Employees’
bonuses fromprofit (*)
Net income

5,384,400

5,384,400(133,265)(133,265)(133,265)(6,826)(6,826)(6,826)4,439,582

4,439,582

4,439,582

(109)

(109)

Acquisition oftreasury stock(109)

Net changes in
items other thanshareholders’equity during theperiod(6,521)

448,748442,226

82,905525,132

Total changes during
the period

2,692,500

2,691,900

4,299,490(109)(6,521)

448,748

10,126,007

82,905

10,208,913

Balance as of May
31, 2007

7,692,575

9,534,686

23,522,911(9,314)25,309220,200

40,986,368

400,224

41,386,593(*)

Employees’ bonuses appropriated upon resolution of profit appropriation by the Company’s subsidiaries in China and Taiwan.

11

(Summary of consolidated statements of cash flows)(Thousands of yen, rounded down)

I.

Nine months ended
February 29,2008 (A)Nine months ended
February 28, 2007 (B)Change(A)-(B)

Year ended
May 31, 2007

AmountAmountAmountAmountCash flows from operating activities
1.

Profit before income taxes

5,730,642

5,504,923

225,718

7,514,989

2.

Depreciation

1,992,815

1,184,094

808,720

1,709,584

3.
4.

Amortization of (negative) goodwill
Decrease in reserve for employees’ retirement
benefits
Decrease in reserve for directors’ retirement
allowancesGain on transfer to defined contribution pension plan

7,894

(428)

8,322

(571)

(5,763)(113,105)

107,342(106,923)(2,300)-(405,906)(2,300)405,906(9,227)(405,906)

5.
6.
7.

Special retirement benefit expenses

-

-

-

113,698

8.

Increase (decrease) in reserve for employees’ bonuses(298,707)(278,594)(20,113)

120,503

9.

Increase (decrease) in reserve for directors’ bonuses(13,638)(22,931)

9,293

8,692

10.

Increase in allowance for doubtful accounts

12,592

19,835(7,242)

39,171

11.

Interest and dividend income(71,689)(36,502)(35,186)(54,240)

12.

Interest expenses

58,08282,964(24,882)

111,956

13.

Foreign exchange loss (gain)

315,680(150,790)

466,470(220,951)

14.
15.

779

-

779

-

16.

Valuation loss on investment securities
Valuation loss on investment securities based on
method in which valuation losses are recognized as
net loss
Gain on sale of tangible fixed assets

86,502(1,305)1,900(1,263)84,602(41)

7,686(28,236)

17.

Loss on disposal and sale of tangible fixed assets

59,40931,971

27,43880,56818.
19.

(13,500)

93(13,593)140(111,439)(834,678)(722,061)(191,455)

610,622(643,223)(1,483,000)(365,414)

22.

Loss (gain) on sale of investment securities
Decrease (increase) in notes and accounts receivable trade
Increase in inventories
Increase (decrease) in notes and accounts payable trade
Other689,743(263,472)

333,560(50,445)

356,183(213,027)(56,724)
447,436

7,337,648

5,185,858

2,151,789

7,423,229

24.

Interest and dividend received

70,18335,16935,01453,541

25.

Interest paid

(54,437)(79,020)

24,582(107,901)

26.

Income taxes paid

(3,229,540)(2,482,584)(746,956)(2,375,717)

4,123,854

2,659,423

1,464,431

4,993,152

20.
21.

Sub-total

Net cash provided by operating activities
II.

Cash flows from investing activities
1.

Payments for time deposits(6,578,402)(2,214,328)(4,364,073)(3,216,783)

2.
3.

Proceeds from time deposits
Payments for acquisition of mortgage-backed
securities
Proceeds from redemption of mortgage-backed
securities
Payments for acquisition of tangible fixed assets

2,441,953

3,105,171(663,218)

6,834,962-(500,000)

500,000(500,000)

500,000(3,775,562)(2,826,611)

500,000(948,950)(4,532,248)

4.
5.
6.

Proceeds from sale of tangible fixed assets

5,574

30,413(24,839)

98,172

7.

Payments for acquisition of intangible fixed assets(20,830)(23,784)

2,953(35,410)

8.

Payments for acquisition of investment securities(537,152)(200,325)(336,827)(200,325)9.
10.

113,500

47,54465,95549,968

11.

Proceeds from sale of investment securities
Payments for additional acquisition of subsidiarysharesPayments for investment in capital(124,461)(10)(97,094)(124,461)
97,084(133,994)

12.

Other
Net cash used in investing activities

12(107,530)-(107,530)-(8,082,924)(2,679,014)(5,403,909)(1,635,659)

(Thousands of yen, rounded down)

III.

Nine months ended
February 29,2008 (A)Nine months ended
February 28, 2007 (B)Change(A)-(B)

Year ended
May 31, 2007

AmountAmountAmountAmountCash flows from financing activities
1.

Net increase (decrease) in short-term borrowings

60,749309,550(248,800)2.

Proceeds from long-term borrowings

50,00093,683(43,683)

131,471

3.

Repayment of long-term borrowings(1,084,279)(1,227,699)

143,420(1,616,908)

4.

-

-

-

5,384,400

6.

Proceeds from issuance of stock
Net expenditure for acquisition and sale of treasury
stock
Payments for dividends(43,423)(165,918)(133,265)(43,423)(32,653)(109)(133,265)

7.

Payments for dividends to minority interests(23,899)(19,090)(4,808)(19,090)(1,206,771)(976,822)(229,949)

3,292,037

V.

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

1,702(5,164,138)

36,778(959,634)(35,076)(4,204,504)

41,804
6,691,334

VI.

Cash and cash equivalents at beginning of period

11,558,559

4,867,225

6,691,334

4,867,225

VII.

Increase in cash and cash equivalents accompanying
new consolidation
Cash and cash equivalents at end of period

76,9436,471,365

3,907,591

76,9432,563,773

11,558,559

5.

IV.

VIII.

13

(454,459)

(Segment Information)(1) Business Segment Information
Nine months ended February 29, 2008 (From June 1, 2007 to February 29, 2008), Nine months ended February 28,
2007 (From June 1, 2006 to February 28, 2007), Year ended May 31, 2007 (From June 1, 2006 to May 31, 2007)
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.
(2) Geographic Segment Information
Nine months ended February 29, 2008 (From June 1, 2007 to February 29, 2008)(Thousands of yen, rounded down)
Japan

North
America

Europe

Asia

Total

(1) Sales to unaffiliated customers

15,090,483

2,445,985

2,507,593

5,632,845

25,676,907-(2) Intersegment sales or transfers

4,075,155

137,651

9,713

72,7104,295,230(4,295,230)

-

Total

19,165,638

2,583,637

2,517,306

5,705,555

29,972,138(4,295,230)

25,676,907

Operating Expenses

15,112,498

2,231,277

2,223,028

4,308,236

23,875,041(4,227,429)

19,647,611

Operating Profit (Loss)

4,053,140

352,359

294,277

1,397,319

6,097,096(67,800)

6,029,295

Corporateand Elim.

Consolidated

Sales(Notes)

25,676,907

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. Unallocated amounts for operating expenses for the above period are not included in Corporate and Eliminations.

Nine months ended February 28, 2007 (From June 1, 2006 to February 28, 2007)(Thousands of yen, rounded down)
Japan

North
America

Europe

Asia

Total

14,137,898

2,893,370

2,099,666

3,555,803

22,686,738

Corporateand Elim.

Consolidated

Net sales(1) Sales to unaffiliated customers(2) Intersegment sales or transfers-

22,686,738

3,124,097

44,085

1,991

121,899

3,292,074(3,292,074)

-

Total

17,261,996

2,937,456

2,101,657

3,677,702

25,978,812(3,292,074)

22,686,738

Operating Expenses

13,182,951

2,469,438

2,113,933

2,972,329

20,738,652(2,989,630)

17,749,021

Operating Profit

4,079,045

468,017(12,276)

705,3735,240,160(302,443)

4,937,716(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. Unallocated amounts for operating expenses for the above period are not included in Corporate and Eliminations.

Year ended May 31, 2007 (From June 1, 2006 to May 31, 2007)(Thousands of yen, rounded down)
Japan

North
America

Europe

Asia

Total

19,371,502

3,957,543

3,009,630

5,042,583

31,381,259

Corporateand Elim.

Consolidated

Net sales(1) Sales to unaffiliated customers(2) Intersegment sales or transfers-

31,381,259

4,419,424

99,8785,815

129,432

4,654,551(4,654,551)

-

Total

23,790,927

4,057,422

3,015,445

5,172,015

36,035,810(4,654,551)

31,381,259

Operating Expenses

18,332,552

3,444,936

2,975,897

4,136,194

28,889,580(4,433,964)

24,455,616

Operating Profit

5,458,375

612,485

39,5481,035,821

7,146,230(220,587)

6,925,643(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. Unallocated amounts for operating expenses for the above period are not included in Corporate and Eliminations.

14

(3) Overseas Sales
Nine months ended February 29, 2008 (From June 1, 2007 to February 29, 2008)(Thousands of yen, rounded down)North
AmericaI

Overseas Sales

II

Consolidated Sales

III

Overseas sales as a proportion of consolidated sales (%)(Notes)EuropeRest of
World

Asia

Total

2,378,619

3,001,230

7,540,926

174,993

13,095,770

-

-

-

-

25,676,907

9.2

11.7

29.4

0.7

51.0

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.

Nine months ended February 28, 2007 (From June 1, 2006 to February 28, 2007)(Thousands of yen, rounded down)North
AmericaI

Overseas Sales

II

Consolidated Sales

III

Overseas sales as a proportion of consolidated sales (%)(Notes)EuropeRest of
World

Asia

Total

2,822,079

2,700,710

4,981,428

153,013

10,657,232

-

-

-

-

22,686,738

12.4

11.9

22.0

0.7

47.0

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.

Year ended May 31, 2007 (From June 1, 2006 to May 31, 2007)(Thousands of yen, rounded down)North
AmericaI

Overseas Sales

II

Consolidated Sales

III

Overseas sales as a proportion of consolidated sales (%)(Notes)EuropeRest of
World

Asia

Total

3,864,837

3,826,813

7,146,563

229,843

15,068,058

-

-

-

-

31,381,259

12.3

12.2

22.8

0.7

48.0

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.

15