Consolidated Financial Statements
as of March 31,2022

NIKKI CO.,LTD.

Consolidated Financial Statements（１）Consolidated Balance Sheets

Accounts( in thousands of yen)
Prior Fiscal Year(As of March 31,2021)

Current Fiscal Year(As of March 31,2022)

Ratio
(%)

Ratio
(%)

Amounts

Amounts

Increase
Decrease(△)

AssetsCurrent assets
Cash and deposits

3,870,104

3,257,415△ 612,688

860,557－△ 860,557－

1,313,498

1,313,498

Electronically recorded monetary claims-operating

287,917416,000

128,083

Merchandise and finished goods

900,743

1,255,332

354,588

1,050,617

1,161,657

111,039

Raw materials and supplies

66,03078,285

12,255

Other

214,231529,251

315,019

Allowance for doubtful accounts△ 7,972△ 11,307△ 3,335

Notes and accounts receivable-trade
Accounts receivable-trade

Work in process

Total current assets

7,242,231

54.3

8,000,134

44.8

757,903

Noncurrent assets
Property, plant and equipment
Buildings and structures, net

2,376,542

2,331,385△ 45,156

Machinery, equipment and vehicles, net

776,202682,518△ 93,683

Land393,935

405,723

11,788

Lease assets, net

48,04736,181△ 11,866

Construction in progress

583,893

4,582,516

3,998,623

Other, net

140,263

136,946△ 3,317

Total property, plant and equipment
Intangible assets

4,318,884

32.4

8,175,272

45.8

3,856,388

44,1440.3

53,1840.3

9,039

Investments and other assets
Investment securities

1,707,879

1,558,562△ 149,316

Long-term Deferred tax assets

14,28730,487

16,200Other

20,386

21,534

1,147

Total investments and other assets
Total noncurrent assets
Total assets

1,742,553

13.1

1,610,584

9.0△ 131,969

6,105,582

45.7

9,839,041

55.2

3,733,459

13,347,813 100.0

17,839,176

100.0

4,491,362

( in thousands of yen)Accounts

Current Fiscal Year(As of March 31,2021)

Current Fiscal Year(As of March 31,2022)

Ratio
(%)

Ratio
(%)

Amounts

Amounts

Increase
Decrease(△)

Liabilities
Current liabilities
Notes and accounts payable-trade92,372

199,410

107,038

Electronically recorded monetary debt-operating

335,830

389,550

53,7202,300,000

2,441,740

141,740

Lease obligations

13,261

6,354△ 6,907

Accurued expenses

145,680154,587

8,907

Income taxes payable

28,907349,708

320,800

Provision for bonuses

144,012149,264

5,252

Notes payable - facilities

230,700

2,002,190

1,771,490

Other

127,439

171,918

44,479

Short-term loans payable

Total current liabilities

3,418,203

25.6

5,864,723

32.9

2,446,520

Noncurrent liabilities
Long-term loans payable

150,000

1,448,260

1,298,260

Lease obligations

39,07932,919△ 6,159

Deferred tax liabilities

202,482

145,112△ 57,369

Long-term lease deposited

515,563515,713150

Net defined benefit liability

646,205

527,597△ 118,607

Other

161,026

159,476△ 1,550

Total noncurrent liabilities

1,714,356

12.8

2,829,079

15.9

1,114,723

Total liabilities

5,132,559

38.5

8,693,803

48.7

3,561,243

Net assets
Shareholders' equity
Capital stock

500,000

500,000－

Capital surplus

44,762

49,175

4,413

Retained earnings

6,936,372

7,750,913

814,541

Treasury stock△ 229,815△ 205,496

24,318

Total shareholders' equity

7,251,319

54.3

8,094,592

45.4

843,273

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

921,662

822,969△ 98,692

Foreign currency translation adjustment△ 38,883

161,701

200,585

Remeasurements of defined benefit plans

59,052

44,912△ 14,140

Total accumulated other comprehensive income

941,8317.1

1,029,583

5.8

87,752

Minority Interests

22,1030.2

21,1960.1△ 906

Total net assets

8,215,253

61.5

9,145,372

51.3

930,119

Total liabilities and net assets

13,347,813 100.0

17,839,176 100.0

4,491,362

（２） Consolidated Statement of Income( in thousands of yen)

Current Fiscal Year
From April 1, 2020
To March 31,2021
Ratio
(%)

Current Fiscal Year
From April 1, 2021
To March 31,2022
Ratio
(%)

Net Sales

5,895,873

100.0

8,844,286

100.0

2,948,412

Cost of Sales

4,356,962

73.9

6,367,690

72.0

2,010,727

Gross Profit

1,538,911

26.1

2,476,596

28.0

937,685

Selling,general administrative
expenses

1,314,861

22.3

1,392,159

15.7

77,298224,0503.8

1,084,437

12.3

860,386

Accounts

Operating Income

Increase
Decrease(△)

Non-operating income
Interest income

15,52913,133△ 2,395Dividends income

33,55041,536

7,986

Royalty income

10,9157,960△ 2,954

Exchange gain

70,741

242,207

171,466

Subsidy income

11,352

11,535183

Other

15,091

22,324

7,232

Total non-operating income

157,180

2.7

338,698

3.8

181,518

Non-operating expenses
Interest expenses

30,81030,293△ 517

Commission fee－20,00020,000

Other

000

Total non-operating expenses
Ordinary income

30,8100.5

50,2930.6

19,482

350,4195.9

1,372,842

15.5

1,022,422

Extraordinary income
Gain on sales of noncurrent
assetsGain on sales of investment
securities
Total extraordinary income

1,255

243

△ 1,012100,237

1,804△ 98,433

101,493

1.7

2,047

0.0

△ 99,446

Extraordinary loss
Loss on sales and retirementof noncurrent assets

60

48,307

48,247

Environmental expenses－24,140

24,140

Impairment loss

154,661

5,975△ 148,686

Total extraordinary loss

154,721

2.6

78,4220.9△ 76,298

Income before income taxes

297,191

5.0

1,296,466

14.7

999,274

Income taxes-current

102,325

398,808

296,482

Income taxes deferred△ 32,491△ 24,984

7,507Income taxes for prior periods△ 17,981－17,981

Total income taxes-current

51,853373,824

321,971

Income berofe minority interests

245,338

Minority interests in income△ 11,638

Net income

256,977

4.2

922,642

10.4

△ 842
4.4

923,484

677,303
10,796

10.4

666,506

（３） Consolidated Statement of Comprehensive Income( in thousands of yen)

Current Fiscal Year
From April 1, 2020
To March 31,2021

Current Fiscal Year
From April 1, 2021
To March 31,2022

245,338

922,642

677,303

Valuation difference on available-forsale securities485,630△ 98,692△ 584,323

Foreign currency translation adjustment

1,744

200,520

198,776

Remeasurements of defined benefit
plans

93,864△ 14,140△ 108,005

Total Other comprehensive income

581,239

87,687△ 493,551

826,578

1,010,329

183,751

Comprehensive income attributable toowners of the parent

840,142

1,011,236

171,094

Comprehensive income attributable tominority insterests△ 13,564△ 906

12,657

Increase
Decrease(△)

Accounts
Income berofe minority interests
Other comprehensive income

Comprehensive income(Comprehensive income attributable to)（４）Consolidated Statement of Changes in Shareholders' Equity
Current fiscal year (April 1,2021 to March 31,2022)( in thousands of yen)
Shareholders' equity
Capital surplus

Capital stock
Balance at beginning of current
period500,000

Retained earnings

Treasury shares

Total shareholders'equity

6,936,372△ 229,815

7,251,319

44,762

Cumulative effects of changes inaccounting policies
Restated balance

1,163

500,000

44,762

1,163

6,937,535△ 229,815

7,252,482

Changes of items during the period△ 104,646△ 104,646

Net income923,484

923,484

Disposal of treasury shares△ 5,459

Dividends paid

Change in treasury shares ofparent arising from transactions
with non-controlling shareholders

24,3184,413

18,8594,413

Net changes of items other thanshareholders' equity
Total changes of items during theperiod－4,413

813,378

24,318842,110

Balance at end of current period

500,000

49,1757,750,913△ 205,496

8,094,592

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

921,662△ 38,883

Remeasurementsof defined benefit
plans

59,052

Total Accumulated
othercomprehensive
income941,831

Minority interests

Total net assets

22,1038,215,253

Cumulative effects of changes inaccounting policies
Restated balance

1,163

921,662△ 38,883

59,052

941,831

22,103

8,216,416

Changes of items during the period△ 104,646

Dividends paid

Net income

923,484

Disposal of treasury shares

18,859Change in treasury shares ofparent arising from transactions
with non-controlling shareholders

4,413

Net changes of items other thanshareholders' equity△ 98,692

200,585△ 14,14087,752△ 906

86,845

Total changes of items during theperiod△ 98,692

200,585△ 14,14087,752△ 906

928,955

Balance at end of current period

822,969

161,701

44,912

1,029,583

21,196

9,145,372

（５）Consolidated Statements of Cash Flows( in thousands of yen)
Current Fiscal Year Current Fiscal Year
From April 1, 2020 From April 1, 2021
To March 31,2021 To March 31,2022

Increase
Decrease(△)

Net cash provided by (used in) operating activities
Income before income taxes

297,191

1,296,466

999,274

Depreciation and amortization

529,830

473,501△ 56,328

Impairment loss

154,661

5,975△ 148,686

1,461

3,028

1,566

△ 6,527

4,765

11,293

Increase (decrease) in net defined benefit liability△ 101,931△ 139,754△ 37,822Interest and dividends income△ 49,079△ 54,670△ 5,591

30,81030,293△ 517△ 100,237△ 1,804

98,433

Loss (gain) on sales and retirement of noncurrent assets△ 1,195

48,06449,259Exchange gain(loss)

33,898△ 34,421△ 68,320

Decrease (increase) in notes and accounts receivable-trade

31,224△ 483,153△ 514,377

Decrease (increase) in inventories

59,118△ 327,314△ 386,432

Decrease (increase) in other current assets△ 33,130△ 307,134△ 274,003

Increase (decrease) in notes and accounts payable-trade△ 248,540

177,245425,786△ 9,987

40,69950,686

Other

6,953

7,689

735

subtotal

594,521739,477

144,956

Interest and dividends income received

49,07954,6705,591Interest expenses paid

△ 30,879△ 27,381

3,498

Income taxes paid

△ 116,322△ 89,375

26,947496,398

677,391

180,993

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

Interest expenses
Gain on sales of investment securities

Increase (decrease) in other current liabilities

Net cash provided by (used in) operating activities( in thousands of yen)
Current Fiscal Year Current Fiscal Year
From April 1, 2020 From April 1, 2021
To March 31,2021 To March 31,2022

Increase
Decrease(△)

Net cash provided by (used in) investing activities
Payments into time deposits△ 223,253△ 205,614

17,638Proceeds from withdrawal of time deposits

222,345

247,384

25,039Proceeds from sales of investment securities

156,589

9,504△ 147,085

Purchase of property, plant and equipment△ 810,655△ 2,510,600△ 1,699,944

2,217

3,753

1,536－△ 11,285△ 11,285△ 209－

209

Collection of loans receivable

550－

△ 550

Other investment payment

△ 560

△ 554

6

Other investment income

2,833

1,688

△ 1,144△ 650,144△ 2,465,723△ 1,815,579

Repayments of lease obligations△ 15,661△ 13,979

1,682

Proceeds from long-term loans payable

100,000

1,440,000

1,340,000

Repayment of long-term loans payable△ 103,530－103,530

Dividend payment△ 160,876△ 104,646

56,229－△ 2,633△ 2,633△ 180,067

1,318,740

1,498,808

2,950△ 108,820△ 111,770

Increase and decrease in cash and cash equivalents△ 330,863△ 578,411△ 247,547

Cash and cash equivalents at the start of the period

4,046,386

3,715,523△ 330,863

Cash and cash equivalents at the end of the period

3,715,523

3,137,111△ 578,411

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payment on lending

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash equivalents