Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2026

May 13, 2026

Company name: Tokai Carbon Co., Ltd. Listing: Tokyo Stock Exchange Prime Market Securities code: 5301 URL: https://www.tokaicarbon.co.jp/en/

Representative: Hajime Nagasaka, President & Chief Executive Officer

Inquiries: Naoki Hirai, Executive Officer and General Manager, Accounting & Finance Department Telephone: 81-3-3746-5100

Scheduled date to commence dividend payments: -Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (Conference call for analysts and institutional investors)

(Yen amounts are rounded down to millions, unless otherwise noted)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2026 (January 1 to March 31, 2026)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes)

      	Net Sales		Operating Income		Ordinary Income		Quarterly Net Income Attributable to Owners of the Parent Company
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Three months ended March 31, 2026	81,720	1.7	6,345	(8.9)	6,181	(1.9)	1,556	(47.1)
      Three months ended March 31, 2025	80,346	(2.2)	6,967	99.7	6,303	34.5	2,940	80.7

      Note: Comprehensive income: Three months ended March 31, 2026: 1,568 million yen (-%)

      Three months ended March 31, 2025: (13,741) million yen (-%)

      	Quarterly Net Income per Share	Quarterly Net Income per Share Fully Diluted
      	Yen	Yen
      Three months ended March 31, 2026	7.29	-
      Three months ended March 31, 2025	13.78	-

      Note: The Company finalized the provisional accounting treatment for business combinations in the fourth quarter of the consolidated accounting period ended December 31, 2025, and the figures for the three months ended March 31, 2025 reflect the finalization of the provisional accounting treatment.

   2. Consolidated Financial Position

   	Total Assets	Net Assets	Equity Ratio
   	Millions of yen	Millions of yen	%
   As of March 31, 2026	657,654	351,214	48.2
   As of December 31, 2025	664,033	352,846	47.9

   For reference: Shareholders' capital: As of March 31, 2026: 316,780 million yen

   As of December 31, 2025: 318,357 million yen

2. Dividends

   	Annual Dividends
   	End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year-end	Total
   	Yen	Yen	Yen	Yen	Yen
   Fiscal year ended December 31, 2025	-	15.00	-	15.00	30.00
   Fiscal year ending December 31, 2026	-
   Fiscal year ending December 31, 2026 (Forecast)		20.00	-	20.00	40.00

   Note: Amendment to most recently disclosed dividend forecast: Changed

3. Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2026 (January 1 to December 31, 2026)

(Percentages indicate year-on-year changes)

Note: Amendment to most recently disclosed consolidated earnings forecast: Changed

* Notes:

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanying changes in the scope of consolidation): None

2. Application of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

3. Changes in accounting policy and changes and restatements of accounting estimates

   1. Changes in accounting policy accompanying the revision of accounting standards: None

   2. Changes in accounting policy other than those listed in (a): None

   3. Changes in accounting estimates: None

   4. Restatements: None

4. Number of shares issued (common stock)

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

      As of March 31, 2026

      224,943,104 shares

      As of December 31, 2025

      224,943,104 shares

   2. Number of treasury stock at the end of the period

      As of March 31, 2026

      11,436,911 shares

      As of December 31, 2025

      11,436,605 shares

   3. Average number of shares during the period

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Appropriate use of earnings forecasts and other pertinent information (Cautionary statement on forward-looking statements)

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.

(How to obtain the supplemental material on quarterly financial results)

Tokai Carbon has scheduled a briefing on financial results in the form of a telephone meeting for analysts and institutional investors on Thursday, May 14, 2026. The materials for this briefing will be posted on the corporate website on that day.

Supplemental Materials

1. Qualitative Information on the Quarterly Financial Results 2

   1. Operating Results for the First Quarter of the Fiscal Year Ending December 31, 2026 2

2. Quarterly Consolidated Financial Statements and Notes 4

   1. Quarterly Consolidated Balance Sheets 4

   2. Quarterly Consolidated Statements of Income and Comprehensive Income 6

      Quarterly Consolidated Statements of Income 6

      First Three-month Period 6

      Quarterly Consolidated Statements of Comprehensive Income 7

      First Three-month Period 7

   3. Notes to Quarterly Consolidated Financial Statements 8

(Notes on the Going-concern Assumption) 8

(Notes on Significant Changes in Shareholders' Equity Amount) 8

(Segment Information) 9

(Notes on Quarterly Consolidated Statements of Cash Flows) 10

1

1. ‌Qualitative Information on the Quarterly Financial Results

   1. ‌Operating Results for the First Quarter of the Fiscal Year Ending December 31, 2026

During the first three months of 2026 (from January 1 to March 31, 2026), the global economy continued to grow, driven by demand for investment in AI, which has continued since the previous fiscal year. However, the outlook for the global economy remained uncertain due to worsening Japan-China relations, the impact of the U.S. tariff policy, inflationary pressure caused by the tense Middle Eastern situation, and concerns about an economic downturn.

Under these circumstances, in the Group, based on "Vision 2030", the long-term vision we announced in February 2025 that lays out our desired state in 2030 and the initiatives we will take to achieve them, we are conducting activities to improve productivity and quality, reduce costs, and secure sustainable and stable profits, with the aim of achieving net sales of 500 billion yen, EBITDA margin of 20%, and ROIC of 12%, as our "Vision 2030" goals. In addition, from the perspective of medium - to long-term growth and sustainability, the Company is steadily promoting a project to recover carbon black from used tires and other materials, while continuing to promote the Thai production base relocation project in Carbon Black, which is our core business. In the new business field, with support from the Ministry of the Environment, we are also developing and verifying production technologies for functional solid carbons with the aim of establishing a carbon recycling-oriented society.

As a result, net sales for the first three months of 2026 increased by 1.7% year on year to 81,720 million yen. Operating income decreased by 8.9% year on year to 6,345 million yen. Ordinary income decreased by 1.9% year on year to 6,181 million yen. Quarterly net income attributable to owners of the parent company decreased by 47.1% year on year to 1,556 million yen. The Company finalized the provisional accounting treatment for business combinations in the fourth quarter of the consolidated accounting period ended December 31, 2025, and the figures for the three months ended March 31, 2025 reflect the finalization of the provisional accounting treatment.

Results by business segment were as follows:

Carbon Black

Both net sales and operating income decreased year on year. The contribution of the newly consolidated Thai subsidiary from the fourth quarter of 2025 was not enough to offset the decline in sales volume due to the production adjustments of a tire manufacturer and the increase in depreciation due to the start of operations at the new Thai plant.

As a result, net sales for the Carbon Black business decreased by 0.5% year on year to 38,730 million yen, while operating income decreased by 28.4% year on year to 3,235 million yen.

Fine Carbon

Net sales increased year on year due to an increase in sales volume of solid SiC focus rings for the memory semiconductor market, a main product. On the other hand, operating income decreased year on year due to sluggish demand in the SiC power semiconductor market.

As a result, net sales for the Fine Carbon business increased by 13.6% year on year to 16,401 million yen, while operating income decreased by 19.8% year on year to 2,264 million yen.

Smelting and Lining

In cathodes for aluminum electrolytic furnaces, earnings were underpinned by the promotion of cost reductions and the license revenue generated from reaching certain milestones outlined in the license agreement for our next-generation low-impact cathode RuC® (Ready-to-use Cathode), despite some shipment delays against the backdrop of the volatile situation in the Middle East.

2