1

Financial Results for the Year Ended December 31, 2010—Consolidated

February 10, 2011 Company name: Tokai Carbon Co., Ltd. Listings: Tokyo Stock Exchange, first section Security code: 5301 URL: http://www.tokaicarbon.co.jp/ Representative: Yoshinari Kudo, President and CEO Contact: Kazuhiko Matsubara, General Manager, Accounting Department,

Corporate Administration Division Tel: +81-3-3746-5100 Scheduled dates Annual shareholders’ meeting: March 25, 2011 Commencement of dividend payments: March 28, 2011 Submission of financial statements: March 25, 2011 1. Consolidated Financial Results for the Year Ended December 31, 2010

(January 1, 2010 to December 31, 2010)

(Amounts rounded down to the nearest million yen) (1) Operating Results

(Percentage figures represent year-on-year changes) Net sales Operating income Ordinary income Net income million yen % million yen % million yen % million yen %

Year ended December 31, 2010 107,679 29.3 10,575 99.6 9,854 97.4 5,630 110.5

Year ended December 31, 2009 83,298 (35.2) 5,299 (75.5) 4,993 (73.4) 2,674 (75.9)

Net income per share

Net income per share—fully

diluted

Return on equity

Ordinary income / Total assets

Operating income / Net sales

yen yen % % % Year ended

December 31, 2010 26.05 — 5.4 6.4 9.8

Year ended December 31, 2009 12.28 — 2.6 3.1 6.4

Note: Equity method investment gains or losses: Year ended December 31, 2010: ¥ 361 million

Year ended December 31, 2009: (¥ 111 million)

(2) Financial Position

Total assets Net assets Shareholders’

equity ratio Net assets per

share million yen million yen % yen

As of December 31, 2010 155,304 105,605 66.6 484.53

As of December 31, 2009 154,922 106,042 67.2 478.26

Note: Shareholders’ equity: As of December 31, 2010: ¥ 103,482 million

As of December 31, 2009: ¥ 104,148 million

2

(3) Cash Flow Position

Cash flows from

operating activities Cash flows from

investing activities Cash flows from

financial activities Cash and

cash equivalents at end of period

million yen million yen million yen million yen Year ended

December 31, 2010 18,586 (6,088) (6,795) 14,005

Year ended December 31, 2009 12,080 (9,231) (7,287) 8,977

2. Dividends

Dividend per share

Record date End of 1st quarter

End of 2nd quarter

End of 3rd quarter

Year-end Full-year

Total dividends

paid (full year)

Payout ratio (consolidated)

Dividends / Net assets

(consolidated)

yen yen yen yen yen million yen % % Year ended

December 31, 2009

— 4.00 — 4.00 8.00 1,742 65.1 1.7

Year ended December 31,

2010 — 4.00 — 4.00 8.00 1,725 30.7 1.7

Year ending December 31, 2011(forecast)

— 4.00 — 4.00 8.00 30.0

3. Forecast of Consolidated Earnings for the Ending December 31, 2011 (January 1, 2011 to December 31, 2011)

(Percentages represent year-on-year changes for the full year and increase/decrease from the same period of the previous year for the first six months)

Net sales Operating income Ordinary income Net income Net

income per share

million yen % million yen % million yen % million yen % yen First six months 53,500 (1.6) 4,600 (12.7) 4,500 (8.2) 2,400 (14.8) 11.24 Full year 109,000 1.2 10,000 (5.4) 10,100 2.5 5,700 1.2 26.69

4. Other Information (1) Changes affecting the status of significant subsidiaries (changes in specified subsidiaries

that involved changes in the scope of consolidation): None (2) Changes in accounting principles, procedures, and method of disclosure used to prepare

the consolidated financial results (changes incorporated in the “significant changes in methods of disclosure used to prepare consolidated financial statements”)

1) Changes in accordance with amendments to accounting standards: Yes 2) Changes other than the above: None

3

(3) Number of shares issued (common stock)

1) Number of shares issued at end of the period (including treasury stock):

As of December 31, 2010: 224,943,104 shares As of December 31, 2009: 224,943,104 shares

2) Number of shares held in treasury at end of the period:

As of December 31, 2010: 11,368,713 shares As of December 31, 2009: 7,176,461 shares Note: For the number of shares that is the basis for calculating net income per share (consolidated), refer to “Per Share Information” on page 25.

Reference: Overview of Non-Consolidated Financial Results 1. Non-Consolidated Financial Results for the Year Ended December 31, 2010

(January 1, 2010 to December 31, 2010) (1) Operating Results

(Percentage figures represent year-on-year changes) Net sales Operating income Ordinary income Net income million yen % million yen % million yen % million yen %

Year ended December 31, 2010 68,662 32.2 4,891 107.6 4,986 53.9 2,621 845.6

Year ended December 31, 2009 51,943 (35.0) 2,356 (80.2) 3,239 (71.8) 277 (95.0)

Net income per share

Net income per share—fully diluted

yen yen Year ended

December 31, 2010 12.13 —

Year ended December 31, 2009 1.27 —

(2) Financial Position

Total assets

Net assets Shareholders’ equity ratio

Net assets per share

million yen million yen % yen

As of December 31, 2010 130,953 88,061 67.2 412.32

As of December 31, 2009 128,325 89,413 69.7 410.59

Note: Shareholders’ equity: December 31, 2010: ¥ 88,061 million

December 31, 2009: ¥ 89,413 million *Appropriate Use of Earnings Forecasts and Other Important Information These materials contain various forward-looking statements and other forecasts regarding performance and other matters. Such statements are based on information available at the time of preparation as well as certain reasonable assumptions. Actual results may differ materially from those expressed or implied by forward-looking statements due to a range of factors. For the assumptions underlying the earnings forecasts presented and other information regarding the use of such forecasts, refer to “1. Business Results 1) Analysis of Business Results” on page 4-5.

4

1. Business Results 1) Analysis of Business Results The global economy during 2010 was on the road to recovery, led by steady economic growth in emerging countries. Since midyear, however, the recovery has slowed, owing primarily to expanding fiscal and financial crises in European countries, a downturn in the U.S. economy, and growing concerns over inflation in emerging countries. The Japanese economy also picked up in the first half of the year, reflecting the recovery in the global economy and the effects of the government's stimulus measures. However, the business atmosphere has turned for the worse since the summer. The diminishing effects of the stimulus measures after implementation, a slowdown in exports due to the deceleration in the global economy, and the ongoing appreciation of the yen adversely impacted the Japanese economy during the second half of the year. Under these conditions, although demand has recovered in the industries in which the Tokai Carbon Group's customers operate (e.g., rubber products, steel, IT hardware, and industrial machinery), some businesses have been slow to recover. Yen appreciation also led to a decrease in net sales and income. As a result, consolidated net sales for the fiscal year under review increased by 29.3% year on year, to ¥107,679 million. Operating income increased by 99.6% year on year, to ¥10,575 million, as a result of continued efforts to cut expenses across the board since the previous year. Ordinary income rose 97.4% year on year, to ¥9,854 million. Net income increased to ¥5,630 million, up 110.5% year on year. The status of our principal business segments is as follows: Carbon Products Carbon Black In Japan, the tire and automotive parts industries, in which our customers operate, enjoyed a recovery until the third quarter. In particular, demand in the tire industry remained favorable, due chiefly to unabated exports until the fourth quarter, even after the government's eco-car subsidy program was terminated. In addition, as there were strong demand for tires in Thailand and China and firm demand from automotive manufacturing in these countries, sales volumes of carbon black continued to recover. As a result, net sales of carbon black increased by 35.6% year on year, to ¥39,975 million.

Graphite Electrode Global blast furnace production of raw steel was on a gradual recovery path to the 2008 level that preceded the financial crisis, after bottoming out in the first quarter of the previous year. Operations in the electric arc furnace industry, in which our customers operate, were also on the road to recovery worldwide, and demand for electrodes picked up. However, the recovery slowed down somewhat in the second half of the year. As a result, although export sales declined due to the impact of yen appreciation, net sales of graphite electrodes increased by 19.3% year on year, to ¥38,425 million.

Fine Carbon Demand for fine carbon did not see a major recovery during the first quarter in the industries in which our customers operate. Since the second quarter, however, demand in the solar cell and semiconductor industries, which are growing markets, has surged, especially in China, Korea, and other Asian countries. The Company has also implemented sales price revisions since the third quarter. As a result, despite the negative impact on export sales from yen appreciation, net sales of fine carbon increased by 35.1% year on year, to ¥15,537 million. Friction Materials Sales were on a rapid recovery path due to unabated firm demand in construction machinery markets, our major client segment, supported by substantial demand growth in China and other emerging countries. Although demand for friction materials for two-wheeled vehicles showed signs of moderate recovery, demand for four-wheeled vehicles picked up steadily. In general, demand showed encouraging signs of recovery. As a result, net sales of friction materials rose 46.7% year on year, to ¥7,692 million.

5

Based on the above items, net sales in the Carbon Products segment increased by 29.6% year on year, to ¥101,630 million. Operating income increased by 95.4% year on year, to ¥9,368 million. Industrial Furnaces and Related Products For the most part, substantial capital investment was not seen in our major clients in IT-related industries, although capital investment showed signs of a moderate recovery. Accordingly, sales of industrial furnaces, our major products, remained at a low level, similar to that of the previous year. However, sales of heating elements and related products rose over the previous year, owing to a recovery in demand in the glass and electronic component industries. As a result, net sales in the Industrial Furnaces and Related Products segment increased by 27.7% year on year, to ¥5,628 million. Also, operating income soared by 217.0% year on year, to ¥985 million, as a result of our efforts in improving profitability centering on productivity. Other Operations Net revenues from Other Operations, including real estate rental revenues, declined 10.0% year on year, to ¥420 million. However, operating income increased by 8.0%, to ¥272 million. Outlook for the Year Ending December 31, 2011 Assuming an exchange rate of ¥80 to the U.S. dollar, the Group forecasts 2011 consolidated net sales of ¥109,000 million, operating income of ¥10,000 million, ordinary income of ¥10,100 million, and net income of ¥5,700 million. At fiscal year-end, the Group expects cash and cash equivalents of approximately ¥13,000 million. 2) Financial Position Assets, Liabilities, and Net Assets (i) Assets At December 31, 2010, consolidated assets totaled ¥155,304 million, a ¥381 million increase from December 31, 2009. Current assets in the fiscal year under review totaled ¥81,684 million, a ¥4,806 million increase from the previous year, reflecting an increase in notes and accounts receivable. Fixed assets totaled ¥73,619 million, a decrease of ¥4,424 million from the previous year, which was mainly due to a decline in tangible fixed assets. (ii) Liabilities Consolidated liabilities totaled ¥49,698 million at December 31, 2010, an increase of ¥818 million from the previous year. Current liabilities accounted for ¥28,625 million, up ¥43 million from the previous year, mainly as a result of an increase in notes and accounts payable, despite a decrease in short-term borrowings. Fixed liabilities totaled ¥21,072 million, an increase of ¥774 million from the previous year, which was mainly due to an increase in long-term debt. (iii) Net Assets Consolidated net assets at the end of the fiscal year under review totaled ¥105,605 million, a decrease of ¥436 million from the previous year, which was principally due to the purchase of treasury stock and foreign currency translation adjustments, despite an increase in retained earnings. As a result, at fiscal year-end the Group had a shareholders' equity ratio of 66.6%, a 0.6 percentage point decrease from December 31, 2009. Cash Flows At fiscal year-end, the Group’s cash and cash equivalents totaled ¥14,005 million, a ¥5,027 million increase from the previous year. Cash flows and the major sources and uses of cash in 2010 are summarized as follows. (i) Cash Flow from Operating Activities Operating activities provided net cash of ¥18,586 million, a ¥6,505 million increase from 2009, chiefly reflecting an increase in trade receivables despite an increase in trade payables. (ii) Cash Flow from Investing Activities Investing activities used net cash of ¥6,088 million, a ¥3,143 million decrease from 2009, due mainly to a decrease in the purchase of tangible fixed assets. (iii) Cash Flow from Financing Activities

6

Financing activities used net cash of ¥6,795 million, a ¥492 million decrease from 2009. The decline primarily reflects a net decrease of ¥4,386 million in short-term borrowings. Cash Flow Metrics Year ended December 31, 2006 2007 2008 2009 2010 Shareholders' equity ratio (%) 59.7 62.8 59.7 67.2 66.6 Shareholder's equity ratio at market value (%) 106.2 126.5 46.8 64.7 69.4 Ratio of debt to cash flow 3.4 1.1 3.3 1.8 1.0 Interest coverage ratio (times) 9.5 18.6 9.0 21.7 28.8 Notes: 1. The above ratios were calculated as follows using consolidated financial statement data. Shareholders' equity ratio: shareholders' equity / total assets Shareholders' equity ratio at market value: market capitalization / total assets Ratio of debt to cash flow: interest-bearing debt / operating cash flow Interest coverage ratio: operating cash flow / interest expense 2. Market capitalization was calculated by multiplying the Company’s year-end closing share price by the number of shares outstanding (net of treasury stock) at year-end. 3. Interest-bearing debt was calculated as the sum of all consolidated on-balance-sheet liabilities upon which interest is payable plus zero-coupon convertible bonds. 4. Operating cash flow and interest expense are respectively "net cash provided by (used in) operating activities" and "interest paid" as reported on Consolidated Statements of Cash Flows. 3) Dividend Policy and 2010-11 Dividends In the aim of increasing shareholder returns, enhancing corporate value, and strengthening the Group’s operational foundation, the Company has adopted a policy of setting dividends based on its earnings status viewed from a medium-term perspective, while also maintaining sufficient retained earnings. The Company retains earnings to fund strategic investments in new businesses, including M&A, invest in improving existing operations' efficiency, solidify its financial condition, and maintain stable dividends. For the fiscal year ended December 31, 2010, the Company plans to pay year-end dividend of ¥4 per share, the same as that of the previous period. The year-end dividend will bring total 2010 dividends to ¥8 per share. For 2011, the Company plans to pay total annual dividends of ¥8 per share, consisting of an interim dividend of ¥4 per share and year-end dividend of ¥4 per share.

4) Business and Other Risks

This section describes the Group’s business and other risks that are thought to have material influence on investors’ decisions. The following does not necessarily cover all the risks associated with the Group. It should be noted that the following contains forward looking statements based on judgments made as of the dissemination date hereof (February 10, 2011).

(1) Changes in supply-demand conditions in domestic and overseas markets The Group operates business globally through active sales operations in both domestic and overseas markets with production bases in Asia, Europe, and the U.S. Therefore, sales of the Group’s products are always affected by changes in global and Japanese economic conditions. The Group promotes productivity improvements and cost reductions to maintain a business structure that is not easily affected by changes in business environment. Nevertheless, declines in demand from associated industries and economic slowdowns in regions where the Group’s products are sold may have significant negative impacts on the Group’s business results and financial standing.

(2) Risks associated with overseas operations

The Group is moving forward with expansions into overseas markets, and overseas sales accounted for 50.4% of the Group’s consolidated net sales last year. Risks associated with

7

overseas expansion include the worsening of political and economic situations in overseas markets, regulations on imports, unexpected revisions of statutes, deterioration of public order, riots, terrorist attacks, and wars. Such occurrences may affect the Group’s business results and financial position. In particular, in recent years the Group has been expanding its carbon black and fine carbon businesses in China—it has established a carbon black manufacturing and sales base in the country in response to growing demand for tires there and a fine carbon processing and sales base to meet increasing demand for solar cell and semiconductor-related carbon materials. Therefore, changes in the political and economic climate in China in particular could have a significant impact on the Group’s business results.

(3) Foreign exchange fluctuations

The Group is engaged in foreign currency denominated transactions in selling its products to overseas customers and in purchasing raw materials from overseas suppliers. Its business is therefore affected by movements in foreign exchange rates. Although the Group hedges foreign exchange related risks through measures such as forward foreign exchange contracts, the effects of rapid fluctuations in exchange rates on business results and financial position cannot be fully eliminated. Given the Group’s current foreign exchange position, appreciation of the yen against major currencies such as the U.S. dollar and Euro tends to adversely affect its business results. Conversely, a weaker yen against these currencies tends to benefit its business results.

(4) Price competition

As a leading company in carbon products—the Group’s main business—the Group aims to provide high quality products at lower prices, thereby further bolstering its competitive advantage, and maintaining a highly profitable business structure. However, moves by competitors such as those to enhance product capabilities and lower selling prices, may expose the Group’s products to fierce price competition, which may lead to a lower market share and declines in net sales at the Group. Such occurrences may have a significant impact on the Group’s business results.

(5) Rise in raw material prices

The Group procures raw materials from a number of domestic and overseas suppliers in order to ensure a stable supply of raw materials and to maintain optimal prices. However, raw material prices may fluctuate significantly depending on the future course of the world economy. The Group is making efforts to minimize the impact of such events on its business results through measures that include strengthening cost competitiveness, passing price rises on to product prices, and cultivating new suppliers. However, in the event of extreme difficulty in procuring raw materials or further hikes in raw material prices, the Group’s business results may be adversely affected.

(6) Research and development

Competing companies supplying products similar those of the Group exist in every sector in which the Group operates. To maintain its competitive edge, the Group first carefully selects target markets and then engages in research and development and the commercialization of new products. However, failure to properly respond to changes in technologies and customer requirements or prolonged development periods may hurt the Group’s growth potential and profitability and adversely affect the Group’s business results and financial standing.

(7) Intellectual property rights The Group holds a wide variety of patents and trademarks and has acquired ownership of and rights to intellectual property. The Group strives to strictly control its intellectual property and constantly monitors possible infringements by third parties. However, the Group may encounter difficulty in fully protecting its intellectual property rights from infringement by third parties, and this may adversely affect the Group’s business activities. Further, should the Group’s proprietary products inadvertently infringe on the intellectual property rights of other parties, the Group may be liable for damage compensation, and this may affect the Group’s business

8

results.

(8) Environmental regulations The Group’s core businesses are resource- and energy-intensive and have high environmental impacts. Although the Group strives to reduce the environmental load of its businesses by establishing certain facilities, enhancing control structures, and improving productivity, the future application of stricter environment-related legislation and more pronounced demands from society regarding environmental responsibilities may adversely affect the Group’s business results and financial standing.

(9) Securities held by the Group

The Group holds shares in financial institutions and certain of its customers and therefore may be affected by stock price movements. The Group does not use hedging instruments to protect itself against movements in stock prices.

(10) Regulatory environment The Group operates its business in compliance with laws and regulations, and its operations, both domestic and overseas, are subject to various statutory and regulatory restrictions. Going forward, there may be increased regulatory restrictions related to the environment, recycling, and international trade. The implementation of such regulations could further restrict the Group’s business operations and increase costs, which may affect the Group’s business results.

(11) Legal disputes Although the possibility of new legal disputes with the potential to materially affect the Group’s financial position and business results arising is slight, the occurrence of such disputes in the future may have a material impact on the Group’s business results.

(12) Natural disasters and large-scale accidents The Group places strong emphasis on ensuring safety and preventing accidents at its plants, and regards such efforts as a critical element in its manufacturing operations. However, natural and man-made disasters, such as earthquakes, typhoons, floods, and terrorist attacks may hamper the Group’s manufacturing operations, severely damage social infrastructure, and lead to other unanticipated situations. If such events occur, the Group’s business results may be significantly impacted.

9

2. Tokai Carbon Co., Ltd. Tokai Carbon group (the “Group”) comprises Tokai Carbon Co., Ltd. (the “Company”), 26 subsidiaries, and 6 affiliates. The principal business fields of the Group, and the respective positions of the Company, its subsidiaries, and affiliates within each of these business fields, along with information on linkages with other segments, appear below. Carbon-products The Company engages in the production and sale of carbon black for use in automotive tires and other rubber products, artificial graphite electrodes for use in electric arc furnaces for steel production, fine carbon-products (specialty graphite products), friction materials, carbon brushes, and impervious graphite, as well as in the production and sale of other products. The Company contracts the processing of fine-carbon products to Tokai Fine Carbon Machining Co., Ltd., and Oriental Sangyo Co., Ltd. Tokai Fine Carbon Machining Co., Ltd., is engaged in the sale of fine-carbon, while Oriental Sangyo Co., Ltd., is engaged in the production and sale of pencil lead-cores. Tokai Material Co., Ltd., Mitomo Brake Co., Ltd., Daiya Tsusho Co., Ltd., and Tokai Noshiro Seiko Co., Ltd., are engaged in business activities related to friction materials. Overseas, in Thailand, Thai Tokai Carbon Product Co., Ltd., engages in the production and sale of carbon black. In China, Tokai Carbon (Tianjin) Co., Ltd., engages in the production and sale of carbon black; and Tokai Carbon (Shanghai) Co., Ltd., engages in the sale of fine-carbon products. In the U.S., Tokai Carbon Electrode Sales, Inc. and Tokai Carbon Electrode Sales LLC. engage in the production and sale of artificial graphite electrodes. Tokai Carbon U.S.A., Inc., and MWI, Inc., engage in the production and sale of fine-carbon products. In Europe, Tokai ErftCarbon GmbH engages in the production and sale of artificial graphite electrodes; Tokai Carbon Europe GmbH, Tokai Carbon Europe, Ltd., Tokai Carbon UK Ltd., Tokai Carbon Italia S.R.L, Svensk Specialgrafit AB, Tokai Carbon Deutschland GmbH, and Carbon-Mechanik GmbH engage in business activities related to fine-carbon products. Furthermore, Tokai Carbon Korea Co., Ltd., established as a joint venture in Korea, is engaged in the production and sale of fine carbon products, while SGL Tokai Carbon Ltd. Shanghai, in China, another joint venture, engages in the processing and sale of artificial graphite electrodes, and Dalian Tokai-Jinqi-Fuji Carbon Co., Ltd., is engaged in the processing and sale of fine carbon products. SGL Tokai Process Technology Pte. Ltd., in Singapore, is engaged in business activities related to impervious graphite. Industrial furnaces and related-products Tokai Konetsu Kogyo Co., Ltd., is engaged in the production and sale of industrial furnaces (industrial-use electric and gas furnaces), silicon carbide and alumina refractory materials, and silicon carbide heating elements and ceramic resistors. Erema Sangyo Co., Ltd., Shanghai Tokai Konetsu Co., Ltd., and Heisei Ceramics Co., Ltd., are also involved the field of industrial furnaces and related-products. Other operations The Company engages in real estate rental operations. Tokai Unyu Co., Ltd., operates a general-cargo trucking business and cargo handling business. The Company contracts the transportation and packaging of its products to Tokai Unyu. Lancom Toyo Co., Ltd., engages in the development and sale of computer software. Nagoya Green Club Co., Ltd., engages in the management of golf driving ranges.

10

Group structure

Buy products

Buy productsSell and buy products

Sell products

Sell products

Supply raw materials

Supply raw materials

Buy products

Sell products

Sell products

Sell products

Rent facilities

Buy products

○ Dalian Tokai-Jinqi-Fuji Carbon Co., Ltd.

Tokai Carbon Korea Co., Ltd.

Other

○

Commission ofmanagement of golf

driving ranges

Tokai Unyu Co., Ltd.

○ SGL Tokai Process Technology Pte. Ltd.

※ Tokai Noshiro Seiko Co., Ltd.

Mitomo Brake Co., Ltd.

※ Tokai Material Co., Ltd.

※

※ Daiya Tsusho Co., Ltd.

Svensk Specialgrafit AB

※ Tokai Carbon U.S.A., Inc.

Oriental Sangyo Co., Ltd.

Thai Tokai Carbon Product Company Limited

※

※ Tokai Carbon Europe GmbH

※

※

Carbon and Graphite Products Industrial Furnaces and RelatedProducts

※ Tokai Konetsu Kogyo Co., Ltd.

Heisei Ceramics Co., Ltd.

Tokai Carbon C

o., Ltd.

Lancom Toyo Co., Ltd.

※

※

※

Tokai Carbon (Tianjin) Co., Ltd. Erema Sangyo Co., Ltd.

Shanghai Tokai Konetsu Co., Ltd.

※

※ Tokai ErftCarbon GmbH○

※

Tokai Carbon Electrode Sales Inc.

MWI, Inc.

Tokai Carbon UK Ltd.※

※

※

Carbon-Mechanik GmbH

Tokai Carbon Deutsceland GmbH

Tokai Fine Carbon Machining Co., Ltd.

◎

○

※ Tokai Carbon (Shanghai) Co., Ltd.

Nagoya Green Club Co., Ltd.※ Tokai Carbon Europe Ltd.

Tokai Carbon Italia S.R.L.

※

◎

※ Tokai Carbon Electrode Sales LLC.

○ SGL Tokai Carbon Ltd. Shanghai

Supply raw materials

Commission delivery

Purchase softw are

Sell products ※

Note: 1 ※: Consolidated subsidiaries ◎: Non-consolidated subsidiaries to which the equity method is not applicable ○: Affiliated companies to which the equity method is applicable 2 ERFTCARBON GmbH changed its corporate name to TOKAI ERFTCARBON GmbH effective January 1,

2010. 3 Erema Sangyo Co., Ltd. changed its corporate name to Tokai Konetsu Engineering Co., Ltd. effective January

1, 2011.

11

3. Management Policy 1) Basic Corporate Philosophy

The Group operates under the corporate philosophy, “Ties of Reliability,” and the basic policies governing its activities comprise the principles of value creation, fairness, a harmonious relationship with nature, and international cooperation. The Group’s aim is to be the “Global Leader of Carbon Materials” within and outside of Japan by supplying high-quality products with a focus on carbon materials. Through these corporate activities, the Group has been working to expand its operating base, optimize the utilization of management resources, bolster cost competitiveness, and strengthen technology development capabilities. By achieving sustained earnings growth, the Group seeks to fulfill the expectations of its shareholders, customers, and employees as well as those of local communities and all other stakeholders. The Group contributes to the development of society, acting as a responsible corporate citizen.

2) Management Goals and Objectives The Group considers net sales, operating margin, ordinary income ratio, net income ratio, ROA (ordinary income/total assets), and ROE (net income/equity) to be important performance indicators.

3) Medium Term Management Strategies The Group has formulated a new three-year management plan, “T-2012,” which begins in 2010. In this management plan, the Group has defined specific numerical targets for 2012, its final year, which are to achieve net sales of ¥120 billion, operating income margin of 13% (operating income of ¥15.6 billion), ordinary income ratio of 13% (ordinary income of ¥15.6 billion) and net income ratio of 7.5% (net income of ¥9 billion), ROA (ordinary income/total assets) of 9% and ROE (net income/equity) of 8%. The following management policies will be deployed by the Group to achieve these targets.

(1) Aiming to be the global leader in carbon materials manufacturing The Tokai Group follows the basic policies it has been implementing since the deployment of “T-2006,” and aims to achieve superiority in terms of magnitudes of sales, earnings power, technical capabilities, and product development capabilities as it continues to work towards its goal of becoming the global leader in the manufacture of carbon materials. In addition, the Group places priority on activating human resources through frequent personnel changes among group companies, including overseas affiliates, and on developing and enhancing the abilities of personnel to facilitate success in global expansion efforts.

(2) Developing a cost structure that is resistant to demand fluctuations and improving capital

efficiency The Tokai Group strives to develop a cost structure that allows it to generate profits stably even under a low capacity utilization rate in response to demand fluctuations. In addition, the Group focuses its efforts on increasing asset turnover ratio and improving cash flows.

(3) Accelerating commercialization of development items The Group is working to accelerate the commercialization of highly functional and reliable development items by promoting joint development with other companies and educational and public institutions, as well as by strengthening inter-group and inter-divisional cooperation, and commercializing such items to make a business with the potential to drive its sustainable growth for the future.

(4) Emphasizing CSR activities including environmental protection Building on its efforts to date, and being aware of the energy-intensive nature of the industries in which it operates, the Group will further increase its commitment to activities in this area, particularly those aimed at preventing global warming (reduction of CO2 emission units).

12

4) Issues to Be Addressed The Japanese economy is expected to head toward a moderate recovery against the backdrop of steady growth in emerging economies and a recovery in the U.S. economy. However, prospects for the future remain uncertain as the pace of Japan’s recovery largely depends on the global economy, coupled with the trend in foreign currency exchange markets. Amid such an environment, the Group will step forward to remain as the “Global Leader of Carbon Materials.” To this end, the Group is determined to make all-out efforts in achieving the “T-2012" three-year management plan to enhance its corporate value and take up the challenge once again of achieving sustainable growth, based on its four guiding principles (enhancement of value-creation capabilities, fair management, ecological harmony, and internationalism) and its corporate philosophy, “Ties of Reliability.” In addition, the Group will make every effort to pay greater attention to the basics of a manufacturing company, namely security, quality control, and environmental protection, and will continue to reinforce corporate governance and corporate social responsibility (CSR). Furthermore, the Group will continue strengthening its operational foundation through implementing, assessing, and improving its internal controls over financial reporting in compliance with the Financial Instruments and Exchange Act (J-SOX).

5) Other Important Management Issues

Nothing applicable

13

4. Consolidated Financial Statements

(1) Consolidated Balance Sheets

(millions of yen)

As of December 31, 2009 As of December 31, 2010

Amount Amount Assets

Current assets Cash and cash equivalents 9,285 12,076 Notes and accounts receivable *7 28,408 *7 31,494

Merchandise and finished goods 10,044 9,171 Work in process 17,039 15,413 Raw materials and supplies 9,738 9,282 Deferred tax assets 897 688 Other 1,576 3,622 Allowance for doubtful accounts (109) (65) Total current assets 76,878 81,684 Fixed assets Tangible fixed assets Buildings and structures, net 15,843 15,155 Machinery, equipment and vehicles,

net 23,369 20,189 Furnaces, net 3,221 2,542 Land 7,264 7,087 Construction in progress 4,080 5,053 Other, net 988 886 Total tangible fixed assets *1, *2 54,767 *1 50,916 Intangible fixed assets Software 673 465 Other 26 24 Total intangible fixed assets 700 490 Investments and other assets

Investment securities *3 20,544 *3 20,451 Deferred tax assets 342 244 Other *3 1,757 *3 1,570 Allowance for doubtful accounts (67) (54) Total investment and other assets 22,576 22,212

Total fixed assets 78,043 73,619 Total assets 154,922 155,304

14

(millions of yen)

As of December 31, 2009 As of December 31, 2010

Amount Amount Liabilities

Current liabilities Notes and accounts payable *7 10,488 *7 15,051 Short-term borrowings *4 10,677 *4 5,992 Current portion of long-term debt 10 280

Income taxes payable 1,843 1,350 Consumption tax payable 154 377 Accrued expenses 1,352 1,222 Reserve for bonuses 169 175 Deferred tax liabilities 6 — Other *7 3,878 *7 4,175 Total current liabilities 28,582 28,625 Fixed liabilities Long-term debt 11,333 12,162 Deferred tax liabilities 4,180 4,209 Provision for retirement benefits 2,568 2,411

Reserve for directors’ retirement benefits

258 226

Reserve for executive officers’ retirement benefits

73 58

Provision for environment and safety measures

727 924

Other 1,155 1,080 Total fixed liabilities 20,297 21,072

Total liabilities 48,879 49,698 Net assets Shareholders' capital Common stock 20,436 20,436 Additional paid-in capital 17,502 17,502 Retained earnings 67,499 71,387 Treasury stock (5,111) (7,126) Total Shareholders’ capital 100,326 102,200 Valuation and translation adjustments

Net unrealized gains/losses on other securities

5,988 5,823

Deferred hedge gain/loss — 0

Foreign currency translation adjustments

(2,166) (4,541)

Total valuation and translation adjustments

3,821 1,282

Minority interests 1,893 2,123 Total net assets 106,042 105,605 Total liabilities and net assets 154,922 155,304

15

(2) Consolidated Statements of Operations

(millions of yen)

Year ended December 31, 2009

Year ended December 31, 2010

Amount Amount Net sales 83,298 107,679 Cost of sales *1,*4 64,974 *1,*4 83,330 Gross profit 18,323 24,348 Selling, general and administrative expenses Selling expenses *2 3,935 *2 4,844 General and administrative expenses *3,*4 9,088 *3,*4 8,928

Total selling, general and administrative expenses

13,024 13,773

Operating income 5,299 10,575 Non-operating income Interest income 85 29 Dividend income 351 347 Rental income 302 293 Equity in income of non-consolidated

subsidiaries and affiliates — 361

Foreign exchange gains 175 — Employment-adjustment subsidiaries 224 — Subsidy income — *5 203 Other non-operating income 334 440 Total non-operating income 1,474 1,675 Non-operating expense Interest expense 606 649 Foreign exchange loss — 934

Equity in loss of non-consolidated subsidiaries and affiliates

111 —

Compensation expenses 202 — Other non-operating expense 859 812 Total non-operating expense 1,780 2,396

Ordinary income 4,993 9,854 Extraordinary income

Reversal of provision for environment and safety measures

— 50

Gain on sales of fixed assets *6 192 *6 37 Gain on sales of investment securities 940 — Reversal of allowance for doubtful accounts 4 — Total extraordinary income 1,136 87 Extraordinary losses Impairment loss *7 880 *7 440

Provision for environment and safety measures — 289

Special retirement expenses 257 — Loss on retirement of fixed assets *8 31 — Loss on valuation of membership 16 — Loss on valuation of investment securities 6 — Total extraordinary losses 1,192 729

Income before income taxes 4,937 9,211 2,620 2,789

Income taxes, inhabitants tax, and enterprise taxes Income taxes adjustments (349) 443

Total income taxes 2,270 3,232

Minority interests in income (loss) of consolidated subsidiaries

(7) 347

Net income 2,674 5,630

16

(3) Statements of Changes in Shareholders’ Capital (millions of yen)

Year ended December 31, 2009

Year ended December 31, 2010

Amount Amount Shareholders’ capital Common stock Balance at the end of the previous period 20,436 20,436 Changes of items during the period Total changes of items during the period — — Balance at the end of the period 20,436 20,436 Additional paid-in capital Balance at the end of the previous period 17,503 17,502 Changes of items during the period Disposal of treasury stock (0) — Total changes of items during the period (0) — Balance at the end of the period 17,502 17,502 Retained earnings Balance at the end of the previous period 66,778 67,499

Increase (decrease) accompanying the change in accounting processing of foreign subsidiaries

11

—

Changes of items during the period Dividends from surplus (1,960) (1,742) Net income 2,674 5,630 Disposal of treasury stock (4) (1) Total changes of items during the period 709 3,887 Balance at the end of the period 67,499 71,387 Treasury stock Balance at the end of the previous period (5,105) (5,111)

Changes of items during the period Purchase of treasury stock (16) (2,017)

Disposal of treasury stock 9 3 Total changes of items during the period (6) (2,014) Balance at the end of the period (5,111) (7,126) Total shareholders’ capital Balance at the end of the previous period 99,612 100,326

Increase (decrease) accompanying the change in accounting processing of foreign subsidiaries

11

—

Changes of items during the period Dividends of surplus (1,960) (1,742) Net income 2,674 5,630 Purchase of treasury stock (16) (2,017) Disposal of treasury stock 4 2 Total changes of items during the period 702 1,873

Balance at the end of the period 100,326 102,200

17

(millions of yen)

Year ended December 31, 2009

Year ended December 31, 2010

Amount Amount Valuation and translation adjustments

Net unrealized gains/losses on other securities

Balance at the end of the previous period 5,912 5,988 Changes of items during the period

Net changes of items other than shareholders’ capital 75 (164)

Total changes of items during the period 75 (164) Balance at the end of the period 5,988 5,823 Deferred hedge gain/loss Balance at the end of the previous period 5 — Changes of items during the period

Net changes of items other than shareholders’ capital (5) 0

Total changes of items during the period (5) 0 Balance at the end of the period — 0 Foreign currency translation adjustments Balance at the end of the previous period (2,816) (2,166) Changes of items during the period

Net changes of items other than shareholders’ capital 650 (2,375)

Total changes of items during the period 650 (2,375) Balance at the end of the period (2,166) (4,541) Total valuation and translation adjustments Balance at the end of the previous period 3,101 3,821 Changes of items during the period

Net changes of items other than shareholders’ capital 720 (2,539)

Total changes of items during the period 720 (2,539) Balance at the end of the period 3,821 1,282 Minority interests

Balance at the end of the previous period 1,719 1,893 Changes of items during the period

Net changes of items other than shareholders’ capital 174 229

Total changes of items during the period 174 229 Balance at the end of the period 1,893 2,123 Total net assets

Balance at the end of the previous period 104,433 106,042

Increase (decrease) accompanying the change in accounting processing of foreign subsidiaries

11

—

Changes of items during the period Dividends of surplus (1,960) (1,742) Net income 2,674 5,630 Purchase of treasury stock (16) (2,017) Disposal of treasury stock 4 2

Net changes of items other than shareholders’ capital

894

(2,310)

Total changes of items during the period 1,596 (436) Balance at the end of the period 106,042 105,605

18

(4) Quarterly Consolidated Statements of Cash Flows

(millions of yen)

Year ended December 31, 2009

Year ended December 31, 2010

Amount Amount Cash flows from operating activities: Income before income taxes 4,937 9,211 Depreciation and amortization 9,524 8,853 Impairment loss 880 440 Amortization of goodwill 80 —

Increase (decrease) in allowance for doubtful accounts

(2) (45)

Increase (decrease) in reserve for bonuses (65) 5

Increase (decrease) in provision for retirement benefits

442 170

(Increase) decrease in prepaid pension cost 153 (227) Increase (decrease) in reserve for directors’

retirement benefits 2 (32)

Increase (decrease) in reserve for executive officers’ retirement benefits

4 (15)

Increase (decrease) in provision for environment and safety measures

— 196

Interest and dividends income (437) (376) Interest paid 606 649 Foreign exchange (gain) loss (22) 213

Equity in (income) loss of non-consolidated subsidiaries and affiliates

111 (361)

Subsidy income — (203)

(Gain) loss on sales of short-term and long term investment securities

(940) —

(Gain) loss on sales of fixed assets (192) (37) Special retirement expenses 257 — (Increase) decrease in trade receivables 8,446 (4,045) (Increase) decrease in inventories 434 1,816 Increase (decrease) in trade payables (8,198) 5,037 Increase (decrease) in accrued expenses (556) (50) Increase (decrease) in accounts payable-others (1,520) — (Increase) decrease in advance payment 1,213 —

Increase (decrease) in accrued consumption taxes

154 223

Other 815 218 Subtotal 16,131 21,641 Interest and dividends received 495 434 Interest paid (556) (645) Income taxes paid (3,715) (3,046) Proceeds from subsidy — 203 Payments for special retirement benefits (273) —

Net cash provided by (used in) operating activities 12,080 18,586

19

(millions of yen) Year ended

December 31, 2009 Year ended

December 31, 2010

Amount Amount Cash flows from investing activities: Proceeds from withdrawal of time deposits — 238 Purchase of tangible fixed assets (10,812) (6,374) Sales of tangible fixed assets 629 159 Purchase of intangible fixed assets (260) (98) Purchase of investment securities (414) — Proceeds from sales of investment securities 1,577 — Payments of long-term loans receivable (286) — Collection of long-term loans receivable — 285 Payments of loans receivable — (285) Collection of loans receivable 285 — Other 48 (14)

Net cash provided by (used in) investing activities (9,231) (6,088) Cash flows from financing activities: Net increase (decrease) in short-term borrowings (16,181) (4,386) Proceeds from long-term debt 11,332 1,385 Repayment of long-term debt (580) (10) Purchase of treasury stock (16) (2,017) Dividend paid (1,960) (1,742) Proceeds from minority shareholders 133 —

Cash dividends paid to minority shareholders (19) (26) Other 4 2

Net cash provided by (used in) financing activities (7,287) (6,795) Effect of exchange rate changes on cash and cash equivalents

141 (674)

Increase (decrease) in cash and cash equivalents (4,296) 5,027 Cash and cash equivalents at beginning of the period

13,274 *1 8,977

Cash and cash equivalents at end of the period *1 8,977 *1 14,005

20

Segment Information

Business segment information Year ended December 31, 2009 (January 1, 2009 – December 31, 2009)

(millions of yen)

Carbon and graphite products

Industrial furnaces

and related products

Other Total Elimination or corporate Consolidated

I. Net sales and operating income/loss Net sales (1) External sales 78,425 4,405 467 83,298 — 83,298 (2) Inter-segment sales 174 338 415 928 (928) —

Total 78,599 4,744 882 84,226 (928) 83,298 Operating expense 73,805 4,433 630 78,869 (870) 77,999 Operating income 4,794 310 252 5,357 (58) 5,299

II. Assets, depreciation/amortization, impairment losses, and capital expenditure

Assets 129,816 11,087 1,925 142,830 12,091 154,922 Depreciation and amortization 9,056 405 69 9,531 (6) 9,524 Impairment losses 880 — — 880 — 880 Capital expenditure 7,901 212 18 8,132 (65) 8,066

Notes: 1. Method of segmentation

Business segmentation is primarily based on such factors as nature of product, method of production and use of the product concerned.

2. Major products by business segment

Business segments Major products

Carbon and graphite products

Carbon black for rubber products, artificial graphite electrodes for electric arc furnaces, fine-carbon products (specialty graphite products), friction materials, carbon brush, impervious graphite, pencil lead-cores

Industrial furnaces and related products

Industrial electric furnaces, gas furnaces, silicon carbite heating element/alumina refractory, heat-insulating refractory, silicon carbite heating elements, ceramic resistors

Other Cargo transportation, Property leasing

3. Corporate assets included in “Elimination or corporate” consist primarily of assets associated with surplus funds managed, such as cash and deposits and repurchase agreements, and funds for long-term investment, such as investment securities, etc., at the parent company, and amounted to ¥22,968 million.

4. Application of accounting standard for measuring inventories With the application of the Accounting Standards for Measurement of Inventories (Accounting Standards Board of Japan Statement No.9, July 5, 2006) effective from the fiscal year under review, ordinary inventories held for the purpose of sales, which were previously stated mainly at cost determined by the weighted-average method for each month, are now mainly stated at cost determined by the weighted-average method for each month (the balance sheet amount is written down based on decrease of profitability). As a result, operating income of carbon and graphite products and operating income of industrial furnaces and related products decreased ¥599 million and ¥86 million, respectively, for the period under review.

5. Application of the Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statement The Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statement (ASBJ Practical Issues Task Force No.18, May 17, 2006) was applied effective from the fiscal year under review. As a result, operating income from carbon and graphite products increased ¥160 million yen during the period under review.

6. Change in useful lives of tangible fixed assets The Company and its domestic consolidated subsidiaries took the opportunity granted by the revision of the Corporation Tax Law in 2008 to review the status of asset use and change the useful lives of machinery and equipment and furnaces. As a result, operating income of carbon and graphite products and operating income of industrial furnaces and related products decreased ¥211 million and ¥42 million, respectively, during the period under review.

21

Year ended December 31, 2010 (January 1, 2010 – December 31, 2010) (millions of yen)

Carbon and

graphite products

Industrial furnaces

and related products

Other Total Elimination or corporate Consolidated

I. Net sales and operating income/loss Net sales (1) External sales 101,630 5,628 420 107,679 — 107,679

(2) Inter-segment sales 284 96 578 959 (959) — Total 101,915 5,724 999 108,638 (959) 107,679 Operating expense 92,546 4,739 726 98,012 (908) 97,104 Operating income 9,368 985 272 10,626 (51) 10,575

II. Assets, depreciation/amortization, impairment losses, and capital expenditure

Assets 129,760 12,453 1,541 143,754 11,549 155,304 Depreciation and amortization 8,466 336 66 8,868 (14) 8,853 Impairment losses 440 — — 440 — 440 Capital expenditure 6,619 84 14 6,718 (7) 6,710

Notes: 1. Method of segmentation

Business segmentation is primarily based on such factors as nature of product, method of production and use of the product concerned.

2. Major products by business segment

Business segments Major products

Carbon and graphite products

Carbon black for rubber products, artificial graphite electrodes for electric arc furnaces, fine-carbon products (specialty graphite products), friction materials, carbon brush, impervious graphite, pencil lead-cores

Industrial furnaces and related products

Industrial electric furnaces, gas furnaces, silicon carbite heating element/alumina refractory, heat-insulating refractory, silicon carbite heating elements, ceramic resistors

Other Cargo transportation, Property leasing

3. Corporate assets included in “Elimination or corporate” consist primarily of assets associated with surplus funds managed, such as cash and deposits and repurchase agreements, and funds for long-term investment, such as investment securities, etc., at the parent company, and amounted to ¥24,346 million.

22

Geographic segment information

Year ended December 31, 2009 (January 1, 2009 – December 31, 2009) (millions of yen)

Japan Europe Asia Other Total Elimination

or corporate Consolidated

I. Net sales and operating income/loss

Net sales (1) External sales 54,292 13,689 11,592 3,724 83,298 — 83,298

(2) Inter-segment sales 5,123 391 771 30 6,317 (6,317) — Total 59,416 14,080 12,363 3,754 89,615 (6,317) 83,298 Operating expense 57,088 11,796 11,935 3,541 84,362 (6,363) 77,999 Operating income 2,327 2,284 428 212 5,252 46 5,299

II. Assets 112,751 14,149 16,783 3,407 147,091 7,830 154,922

Notes: 1. Classification method of geographic segment: by geographic proximity 2. Major countries or regions in each segment other than Japan:

(1) Europe: Germany, United Kingdom, Italy and Sweden (2) Asia: Thailand and China (3) Other: North America

3. Corporate assets included in “Elimination or corporate” consist primarily of assets associated with surplus funds managed, such as cash and deposits and repurchase agreements, and funds for long-term investment (e.g., investment securities) at the parent company. These corporate assets amount to ¥22,968 million.

4. Application of accounting standard for measuring inventories With the application of the Accounting Standards for Measurement of Inventories (Accounting Standards Board of Japan Statement No.9, July 5, 2006) effective from the fiscal year under review, ordinary inventories held for the purpose of sales, which were previously stated mainly at cost determined by the weighted-average method for each month, are now mainly stated at cost determined by the weighted-average method for each month (the balance sheet amount is written down based on the decrease of profitability). As a result, domestic operating expenses decreased ¥686 million.

5. Application of the Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statement The Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statement (ASBJ Practical Issues Task Force No.18, May 17, 2006) was applied effective from the fiscal year under review. As a result, operating expenses in Europe and operating expenses in Asia increased ¥50 million and ¥109 million, respectively.

6. Change in useful lives of tangible fixed assets The Company and its domestic consolidated subsidiaries took the opportunity granted by the revision of the Corporation Tax Law in 2008 to review the status of asset use and change useful lives of machinery and equipment and furnaces. As a result, operating income in Japan decreased ¥253 million.

23

Year ended December 31, 2010 (January 1, 2010 – December 31, 2010)

(millions of yen)

Japan Europe Asia Other Total Elimination or corporate Consolidated

I. Net sales and operating income/loss

Net sales (1) External sales 69,421 14,203 17,793 6,260 107,679 — 107,679

(2) Inter-segment sales 8,417 492 1,657 74 10,642 (10,642) — Total 77,838 14,696 19,451 6,334 118,321 (10,642) 107,679 Operating expense 71,699 12,977 17,146 6,004 107,827 (10,723) 97,104 Operating income 6,139 1,719 2,305 329 10,493 81 10,575

II. Assets 112,562 12,024 18,040 4,127 146,754 8,549 155,304

Notes: 1. Classification method of geographic segment: by geographic proximity 2. Major countries or regions in each segment other than Japan:

(1) Europe: Germany, United Kingdom, Italy and Sweden (2) Asia: Thailand and China (3) Other: North America

3. Corporate assets included in “Elimination or corporate” consist primarily of assets associated with surplus funds managed, such as cash and deposits and repurchase agreements, and funds for long-term investment (e.g., investment securities) at the parent company. These corporate assets amount to ¥24,346 million.

24

Overseas net sales

Year ended December 31, 2009 (January 1, 2009 – December 31, 2009)) (millions of yen)

Asia Europe Other areas Total I. Overseas net sales 21,052 12,459 6,861 40,373

II. Consolidated net sales 83,298 III. Ratio of overseas net sales

to consolidated net sales 25.3% 15.0% 8.2% 48.5%

Notes: 1. Classification method of geographic segment: by geographic proximity 2. Major countries or regions in each segment:

(1) Asia: Korea, China, Taiwan, Thailand and Indonesia (2) Europe: Germany, United Kingdom, Italy and Sweden (3) Other areas: North America, Middle East, Africa, South America and Oceania

3. “Overseas net sales” includes sales by the Company and its consolidated subsidiaries to the countries and regions other than Japan.

Year ended December 31, 2010 (January 1, 2010 – December 31, 2010) (millions of yen)

Asia Europe Other areas Total I. Overseas net sales 31,498 13,560 9,234 54,293

II. Consolidated net sales 107,679 III. Ratio of overseas net sales

to consolidated net sales 29.2% 12.6% 8.6% 50.4%

Notes: 1. Classification method of geographic segment: by geographic proximity 2. Major countries or regions in each segment:

(1) Asia: Korea, China, Taiwan, Thailand and Indonesia (2) Europe: Germany, United Kingdom, Italy and Sweden (3) Other areas: North America, Middle East, Africa, South America and Oceania

3. “Overseas net sales” includes sales by the Company and its consolidated subsidiaries to the countries and regions other than Japan.

25

Per share information

Year ended December 31, 2009

Year ended December 31, 2010

(1) Net assets per share (2) Net income per share

478.26 yen 12.28yen

(1) Net assets per share (2) Net income per share

484.53 yen 26.05yen

Net income per share – fully diluted is not listed as there were no potential common shares at the end of the fiscal year under review.

Net income per share – fully diluted is not listed as there were no potential common shares at the end of the fiscal year under review.

(Note) The basis of calculation of net income per share is as follows. (millions of yen)

Year ended December 31, 2009

Year ended December 31, 2010

Net income per share (basic) Net income 2,674 5,630 Amount not attributable to common shareholders

— —

Net income attributable to common shares

2,674 5,630

Average number of common shares during the period (thousands of shares)

217,779 216,163

Significant Subsequent Events Nothing applicable Disclosures Omitted Notes concerning lease transactions, transactions with related parties, deferred tax accounting, financial products, securities, derivatives transactions, retirement benefits, and real estate rental are omitted because there is deemed to be no material need to disclose such information in the earnings briefing.