Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2025

November 6, 2025

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 quarterly financial results: Yes

Holding of quarterly 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 Third Quarter of the Fiscal Year Ending December 31, 2025 (January 1 to September 30, 2025)

   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	%
      Nine months ended September 30, 2025	237,336	(8.2)	21,301	40.0	21,061	30.8	16,354	192.9
      Nine months ended September 30, 2024	258,659	(3.4)	15,211	(48.9)	16,097	(51.3)	5,584	(73.9)

      Note: Comprehensive income: Nine months ended September 30, 2025: 8,620 million yen (-44.4%)

      Nine months ended September 30, 2024: 15,505 million yen (-77.4%)

      	Quarterly Net Income per Share	Quarterly Net Income per Share Fully Diluted
      	Yen	Yen
      Nine months ended September 30, 2025	76.61	-
      Nine months ended September 30, 2024	26.18	-

   2. Consolidated Financial Position

   	Total Assets	Net Assets	Equity Ratio
   	Millions of yen	Millions of yen	%
   As of September 30, 2025	629,258	321,790	45.9
   As of December 31, 2024	640,753	325,158	45.2

   For reference: Shareholders' capital: As of September 30, 2025: 288,942 million yen

   As of December 31, 2024: 289,558 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, 2024	-	15.00	-	15.00	30.00
   Fiscal year ending December 31, 2025	-	15.00	-
   Fiscal year ending December 31, 2025 (Forecast)				15.00	30.00

   Note: Amendment to most recently disclosed dividend forecast: None

3. Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2025 (January 1 to December 31, 2025)

(Percentages represent year-on-year changes)

Note: Amendment to most recently disclosed consolidated earinings forecast: Yes

* Notes:

1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanying changes in the scope of consolidation): Yes

   Newly included: 1 company (Thai Tokai Carbon Product Rojana Co., Ltd.) Excluded: 1 company (TOKAI ERFTCARBON GmbH)

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 September 30, 2025

      224,943,104 shares

      As of December 31, 2024

      224,943,104 shares

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

      As of September 30, 2025

      11,436,331 shares

      As of December 31, 2024

      11,470,526 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 Friday, November 7, 2025. 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 Third Quarter of the Fiscal Year Ending December 31, 2025 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

      Quarterly Consolidated Statements of Comprehensive Income 7

   3. Notes to Quarterly Consolidated Financial Statements 8

(Notes on the Going-Concern Assumption) 8

(Notes on Significant Changes in Shareholders' Equity Amount) 9

(Segment Information) 9

(Notes on Statements of Cash Flows) 9

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1. ‌Qualitative Information on the Quarterly Financial Results

   1. ‌Operating Results for the Third Quarter of the Fiscal Year Ending December 31, 2025

During the first nine months of 2025 (from January 1, 2025 to September 30, 2025), the global economy remained highly uncertain due to factors such as the U.S.-China conflict, which was intensified by the protectionist trade policies of the United States, the prolonged war in Ukraine, and the multipolar and complex situation in the Middle East.

Under these circumstances, in February this year, the Group announced its long-term vision, "Vision 2030," which focuses on our desired state in 2030 and initiatives to achieve it. In pursuit of our "Vision 2030" goals - net sales of 500 billion yen, EBITDA margin of 20%, and ROIC of 12% - we focus on three initiatives "Fundamental structural reforms," "Commitment to growing markets," and "Sustainable value creation." We have completed planned structural reforms in Graphite Electrodes through the integration of our domestic production bases and the sale of a European subsidiary. For structural reforms in Smelting and Lining, we have placed the business under direct control of the Corporate Planning Department and are working to strengthen the governance system by dispatching several executive officers to the Europe Office. From the perspective of medium- to long-term growth and sustainability, in Carbon Black, our core business, we are advancing the relocation project of a Thai production base. We have also acquired a Thai carbon black production base from Bridgestone Corporation and are steadily progressing a project to recover carbon black from used tires and other materials.

As a result, net sales for the first nine months of 2025 decreased by 8.2% year on year to 237,336 million yen. Operating income increased by 40.0% year on year to 21,301 million yen. Ordinary income increased by 30.8% year on year to 21,061 million yen. Quarterly net income attributable to owners of the parent company increased by 192.9% year on year to 16,354 million yen.

Results by business segment were as follows:

Carbon Black

Sales volume declined due to production adjustments among tire manufacturers, the Company's main customers, and both net sales and operating income decreased year on year.

As a result, net sales for the Carbon Black business decreased by 7.1% year on year to 110,925 million yen, while operating income decreased by 28.7% year on year to 11,678 million yen.

Fine Carbon

Sales volume of the main product for the memory semiconductor market, solid SiC focus rings, increased year on year. This growth, combined with the impact of consolidating U.S. graphite-processing companies KBR, Inc. and MWI, Inc. as subsidiaries led to a year-on-year increase in net sales. On the other hand, operating income declined year on year due to the impact of a slowdown in growth in the power semiconductor market, intensified competition in the Chinese market and an increase in the amortization of goodwill associated with the consolidation of U.S. graphite-processing companies.

As a result, net sales for the Fine Carbon business increased by 3.7% year on year to 42,076 million yen, while operating income decreased by 35.0% year on year to 6,766 million yen.

Smelting & Lining

Sales volume declined as the sluggish demand for the relining of aluminum smelting furnaces and inventory adjustments by customers continued. Meanwhile, our efforts to reduce costs and decreased depreciation expenses due to the impairment of goodwill and other assets in the previous fiscal year have resulted in improved profitability compared to the same period of the previous year.

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