Financial Results for Third Quarter of Fiscal Year Ending March 31, 2022
[Japanese GAAP] (Consolidated Data)
February 10, 2022
Company Name: Nikko Co., Ltd.
Stock Code:
6306
Representative Representative Director and President

Stock Exchange Listing: Tokyo Stock Exchange
URL http://www.nikko-net.co.jp
Masaru Tsuji

For inquiries:

Hiroshi Fujii

Senior Managing Director
General Manager of Administrative Division
Scheduled date for filing the quarterly report: February 14, 2022
Quarterly earnings supplementary explanatory materials:
Quarterly financial results briefing session:

Tel: +81-78-947-3141

Scheduled date for cash dividends: –Yes
Yes (for institutional investors, analysts, andnewspaper reporters)(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for Third Quarter of Fiscal Year Ending March 31, 2022 (April 1, 2021 - December 31, 2021)(1) Consolidated Operating Results (cumulative)(% represents year-on-year change rate from the same period)
Quarterly net income
Net sales
Operating income
Ordinary income
attributable to ownersof parent
million yen%
million yen%
million yen%
million yen%
Nine months ended
27,165
10.3
1,027
13.5
1,194 (20.3)
883
(8.6)
December 31, 2021
Nine months ended
24,6320.3
904 (13.1)
1,499
28.9
966
(0.4)
December 31, 2020
Note: Comprehensive income:Nine months ended December 31, 2021: 899 million yen (-29.6%)
Nine months ended December 31, 2020 1,277 million yen (79.4%)

Quarterly net income
per share

Diluted quarterly net
income per share

yen

yen

23.13

–

25.16

–

Total assets
million yen

Net assets
million yen

49,34848,697

Nine months ended
December 31, 2021
Nine months ended
December 31, 2020
(2) Consolidated Financial Position

Nine months ended
December 31, 2021
As of March 31, 2021
(Reference) Capital:

Equity ratio%

Net assets per shareyen

31,17563.1

813.9331,45164.5

823.01

Nine months ended December 31, 2021: 31,114 million yen
As of March 31, 2021:

31,427 million yen

2. Dividends
Annual dividends
End of 1Q

End of 2Q

End of 3Q

Year-end

Total

yen

yen

yen

yen

yen

Fiscal year ended March 31, 2021

–

15.00

–

18.00

33.00

Fiscal year ending March 31, 2022
Fiscal year ending March 31, 2022
(Forecasts)

–

15.00

–
15.00

30.00

(Note) Revision of previously announced dividend targets during this reporting period: None-1-

3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)(% represents year-on-year change)
Net income
attributable toowners of parent
millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
Full year
39,000
3.0
2,300
(0.1)
2,500 (15.9)
1,700 (18.3)(Note) Revision of previously announced earnings forecasts during this reporting period: None
Net sales

Operating income

Ordinary income

Net income per
share
yen
44.33

*Notes(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve
changes in the scope of consolidation): None
Newly added companies: None (Company names: -) / Excluded companies: None (Company names: -)(2) Use of special accounting methods for preparation of quarterly consolidated financial statements: None

(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatements(i) Changes in accounting policy arising from revision of accounting standards, etc.: Yes(ii) Changes in accounting policy other than those noted in (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None

(4) Shares issued (common stock)(i) Number of shares issued at end of
period (including treasury stock)

Nine months ended
December 31, 2021

40,000,000 sharesFiscal year ended
March 31, 2021

40,000,000 shares(ii) Number of shares held in treasury at
end of period

Nine months ended
December 31, 2021

1,772,535 sharesFiscal year ended
March 31, 2021

1,814,260 shares(iii) Average number of shares outstanding
during the period (quarter-to-date)Nine months ended
December 31, 2021

38,211,943 shares

Nine months ended
December 31, 2020

38,403,859 shares*This report is not subject to quarterly review procedures by certified public accountants or an auditing firm.

*

Explanation of the appropriate use of earnings forecasts, and other special notes(Cautionary statement with respect to forward-looking statements)
Any forecasts and forward-looking statements given herein are based on information available as of this report’s
publication and on certain assumptions that are deemed reasonable and these forecasts are not guarantees of
future performance. Actual results may differ significantly from forecasts due to various factors. For theassumptions underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to “1.
Qualitative Information on Quarterly Results: (3) Explanation About Forward-Looking Statements, Including
Forecast of Consolidated Financial Results” on page 2 in the accompanying materials.
(How to obtain quarterly earnings supplementary explanatory materials)
The Company is scheduled to post the quarterly earnings supplementary explanatory materials on its website on
Thursday, February 10, 2022.
The Company has scheduled a financial results briefing session (live streaming) for securities analysts on
Wednesday, March 2, 2022.

-2-

Accompanying Material – Table of Contents
1. Qualitative Information on Quarterly Results ·······················································································

4(1) Explanation About Operating Results ···························································································

4(2) Explanation About Financial Position ···························································································

4(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results ·····

4

2. Quarterly Consolidated Financial Statements and Notes ·······································································

5(1) Quarterly Consolidated Balance Sheet ·························································································

5(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ······

7

Quarterly Consolidated Statement of Income
Nine Months Ended December 31, 2021 ·················································································

7

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31, 2021 ·················································································

8(3) Notes to Quarterly Consolidated Financial Statements ········································································

9(Going Concern Assumption) ·····································································································

9(Notes on significant changes in the amount of shareholders’ equity) ················································· 10(Use of special accounting methods for preparation of quarterly consolidated financial statements) ·········· 11(Changes in Accounting Policy) ··································································································

12(Additional Information) ·············································································································

13

-3-

1.

Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the nine months ended December 31, 2021, while the global economy showed a recovery trend, prices
continued to increase due to rising prices of crude oil and other resources, supply constraints, and tight logistics amid
continued restrictions on economic activities due to the COVID-19 pandemic. Businesses are being forced to takeincreasingly difficult decisions also due to factors such as discussions in the U.S. of scaling back of monetary easing
and interest rate hikes taking inflation into account.
Under such circumstances, with relatively small direct impact from COVID-19, the Nikko Group posted consolidated
net sales of 27,165 million yen (up 10.3% from the same period a year earlier) in the nine months under review.
In terms of profits, consolidated operating income totaled 1,027 million yen (up 13.5% from the same period a year
earlier), while consolidated ordinary income came to 1,194 million yen (down 20.3% from the same period a year
earlier) due to large scale special dividends recorded in the same period of the previous year. Quarterly net income
attributable to owners of parent was 883 million yen (down 8.5% from the same period a year earlier).
Operating results by segment are as follows.
(i) Asphalt Plant-Related BusinessNet sales of both products and the maintenance business in Japan decreased compared with the same perioda year earlier. Overseas net sales increased compared with the same period a year earlier. As a result, net
sales of the business increased 4.6% to 13,365 million yen from the same period a year earlier. New orders
received and order backlog in the period under review declined compared with a year earlier.
(ii) Concrete Plant-Related BusinessNet sales of both products and the maintenance business in Japan increased compared with the same perioda year earlier. As a result, net sales of the business increased 17.5% to 7,279 million yen from the same perioda year earlier. New orders received and order backlog in the period under review increased compared with ayear earlier.
(iii) Environment- and Conveyor-Related BusinessNet sales of both environmental products and conveyer products increased compared with the same period ayear earlier. As a result, net sales of the business increased 39.6% to 2,195 million yen from the same period ayear earlier. New orders received and order backlog in the period under review declined compared with a year
earlier.
(iv) Other BusinessNet sales of hand tools and mobile plant business increased compared with the same period a year earlier. Net
sales of temporary construction materials declined compared with the same period a year earlier. As a result,net sales of the business increased 5.7% to 4,325 million yen from the same period a year earlier. New orders
received in the period under review increased compared with a year earlier. Order backlog declined comparedwith the same period a year earlier.
(2) Explanation About Financial Position
Total assets at the end of the reporting period were 49,348 million yen, increasing 650 million yen from the end of
the previous fiscal year.
Current assets were to 32,321 million yen, declining 60 million yen from the end of the last consolidated fiscal year.
Main factors contributing to the change are increases of 2,453 million yen in work in process, 235 million yen inelectronically recorded monetary claims, and 196 million yen in cash and cash equivalents as well as a decrease of
3,501 million yen in notes and accounts receivable-trade. Noncurrent assets came to 17,027 million yen, up 711
million yen from the end of the previous consolidated fiscal year. Factors contributing to the change include increases
of 1,053 million yen in buildings and structures, 194 million yen in land, and 115 million yen in goodwill as well as
declines of 488 million yen in construction in progress and 151 million yen in investment securities.
Liabilities totaled 18,173 million yen, up 927 million yen from the end of the previous fiscal year. Factors contributing
to the change include contract liabilities (advances received till the previous fiscal year) rising 885 million yen,accounts payable-factoring rising 696 million yen, and short-term loans payable rising 628 million yen, while income
taxes payable, provision for bonuses, and accounts payable-other declining 542 million yen, 370 million yen, and 257
million yen, respectively.
Net assets came to 31,175 million yen, decreasing 276 million yen from the end of the last consolidated fiscal year.
Factors contributing to the change include an increase from recording of 883 million yen in net income attributable toowners of parent, an increase of 32 million yen from disposal of treasury stock, and a decline of 1,260 million yen
from payment of dividends.
As a result, equity ratio dropped to 63.1% from 64.5% as of the end of the previous fiscal year.
(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results
There is no change in the performance forecast for the year ending March 31, 2022 that was disclosed on May 14,
2021.

-4-

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(mil. yen)
As of March 31, 2021
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable-trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process
Raw materials and supplies
Other business
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other business
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-5-

As of December 31, 2021

12,491
10,530
1,477
1,494
4,236
1,470
685
(5)
32,381

12,687
7,029
1,712
1,585
6,689
1,521
1,094
(0)
32,321

9,183
660

9,993
889

4,528
11
11
792
1,259
(131)
6,472
16,315
48,697

4,377
11
7
722
1,156
(130)
6,144
17,02749,348(mil. yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Accounts payable-factoring
Short-term loans payable
Income taxes payable
Accounts payable-other
Advances received
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other businessTotal current liabilities
Long-term liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Retirement benefit-related liabilities
Other businessTotal noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Accumulated retirement benefit-related
adjustment
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-6-

As of December 31, 2021

2,591
1,015
2,806
2,188
586
765
2,949
531
76
126
782
14,418

2,488
1,179
3,502
2,817
44
507
17
3,851
160
47
39
621
15,276

304
5
170
1,995
351
2,827
17,246

355
2
151
2,046
341
2,896
18,173

9,197
7,926
13,366(805)
29,685

9,197
7,945
12,990(784)
29,348

1,592

1,491

264

383

(114)

(108)

1,742

1,766

24
31,451
48,69760
31,17549,348

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Nine Months Ended December 31, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other businessTotal non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of noncurrent assets
Compensation for damage
Expenses for dismantling and removal
Other businessTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on sales of investment securities
Total extraordinary loss
Quarterly income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly net income
Quarterly loss attributable to non-controlling interests
Quarterly net income attributable to owners of parent

Nine months ended
December 31, 2020
(from April 1, 2020 to
December 31, 2020)
24,632
18,025
6,607
5,703
904

(mil. yen)
Nine months ended
December 31, 2021
(from April 1, 2021 to
December 31, 2021)
27,16519,894
7,271
6,244
1,027

1
542
22
136
704

1
120
13
115
250

28
8
60
12
109
1,499

35
0
7
24
15
83
1,194

89
89

255
255

64
3
68
1,520
551
2
553
966
966

22
0
23
1,425
437
112
550
875
(8)
883

-7-

(Quarterly Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31, 2021)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Retirement benefit-related adjustment
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of parent
Quarterly comprehensive income attributable tonon-controlling interests966(mil. yen)
Nine months ended
December 31, 2021
(from April 1, 2021 to
December 31, 2021)
875

202

(100)

95
13
310
1,277

118
5
23
899

1,277

905

(0)

(5)

Nine months ended
December 31, 2020
(from April 1, 2020 to
December 31, 2020)-8-

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable-9-

(Notes on significant changes in the amount of shareholders’ equity)
Not applicable- 10 -

(Use of special accounting methods for preparation of quarterly consolidated financial statements)
Not applicable- 11 -

(Changes in Accounting Policy)(Application of the Accounting Standard for Revenue Recognition)
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March
31, 2020.) and other standards from the beginning of the first quarter under review. The Company now
recognizes revenue as the amount expected to be received in exchange for promised goods or services whencontrol of said goods or services is transferred to the customer.
The application of the said accounting standard does not affect the quarterly consolidated financial statement.
As the Company applied the Accounting Standard for Revenue Recognition, “advances received,” which wasrecorded as current liabilities in the consolidated balance sheet for the previous fiscal year, shall be included
under “advances received” and “contract liabilities” from the first quarter of the current fiscal year. In accordancewith the transitional treatment prescribed by Article 89-2 of the Accounting Standard for Revenue Recognition,
the Company did not reclassify the figures for the previous fiscal year using the new description method.
Furthermore, in accordance with the transitional treatment prescribed in Article 28-15 of the Accounting Standard
for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), the Company did not describe theinformation that broke down the profits resulting from the contracts with customers in the third quarter of theprevious fiscal year.
(Application of the Accounting Standard for Fair Value Measurement)
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July4, 2019 ) and other standards from the beginning of the first quarter under review. In accordance with thetransitional treatments prescribed in Article 19 of the Accounting Standard for Fair Value Measurement andArticle 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), theCompany plans to apply the new accounting policies prescribed in the Accounting Standard for Fair Value
Measurement and other standards through the future.
The application of the said accounting standard does not affect the quarterly consolidated financial statement.

- 12 -

(Additional Information)
Not applicable- 13 -