Financial Results for Second Quarter of Fiscal Year Ending March 31, 2024
[Japanese GAAP] (Consolidated Data)
November 13, 2023
Company Name: Nikko Co., Ltd.
Stock Code:

Stock Exchange Listing: Tokyo Stock Exchange

6306

URL http://www.nikko-net.co.jp

Representative: Representative Director and President
For inquiries:

Masaru Tsuji

Director and Vice President/General Manager ofAdministrative Division

Hiroshi Fujii

Tel: +81-78-947-3141

Scheduled date for filing the quarterly report: November 14, 2023

Scheduled date for cash
dividends:

Quarterly earnings supplementary explanatory materials:

Yes

Quarterly financial results briefing session:

Yes (for institutional investors, analysts, andnewspaper reporters)

December 5, 2023

(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for Second Quarter of Fiscal Year Ending March 31, 2024 (April 1, 2023 - September 30,2023)(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%Six months ended
16,982(9.5)
269 (32.5)455 (16.9)
348
33.9
September 30, 2023
Six months ended
18,760(1.3)
399 (58.8)
548 (50.4)
259 (70.0)
September 30, 2022
Note: Comprehensive income:Six months ended September 30, 2023

1,307 million yen (263.8%)

Six months ended September 30, 2022

359 million yen (-56.4%)

Quarterly net income
per shareyen

Diluted quarterly net
income per share
yen

9.09

-

6.80

-

(2) Consolidated Financial Position
Total assets
million yen
As of September 30, 2023
57,127
As of March 31, 2023
52,127

Net assets
million yen
32,372
31,604Six months ended
September 30, 2023
Six months ended
September 30, 2022

(Reference) Capital:

As of September 30, 2023

32,445 million yen

As of March 31, 2023

31,644 million yen

Equity ratio
%
56.8
60.7

Net assets per shareyen
846.50826.73

2. Dividends
End of 1Q
yen-

End of 2Q
yen
15.00
15.00

Annual dividends
End of 3Q
yen-

Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
Fiscal year ending March 31, 2024
(forecasts)(Note) Revision of previously announced dividend targets during this reporting period: None-1-Year-endyen
15.00
15.00

Totalyen
30.00
30.00

3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)(% represents year-on-year change)
Net income
Net income per
Net sales
Operating income Ordinary income
attributable toshareowners of parent
million yen% million yen% million yen% million yen%yen
Full year
44,000 10.9
1,900 84.8
1,900 51.3
1,200 17.6
31.36
(Note) Revision of previously announced earnings forecasts during this reporting period: NoneNotes(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve
changes in the scope of consolidation): None

(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.: None(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
As of March 31,
As of September 30,
40,000,000 shares
40,000,000 shares
2023
2023
period (including treasury stock)(ii) Number of shares held in treasury at
As of September 30,
As of March 31,
1,671,425 shares
1,723,305 shares
2023
2023
end of period(iii) Average number of shares outstanding Six months ended
Six months ended
38,296,475 shares
38,245,157 shares
September 30, 2022
September 30, 2023
during the period (quarter-to-date)*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 the assumptions underlying theforecasts 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 FinancialResults” 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 onMonday, November 13, 2023.
The Company has scheduled a financial results briefing session (live streaming) for securities analysts on Tuesday,December 12, 2023.

-2-Accompanying Material – Table of Contents
1. Qualitative Information on Quarterly Results .......................................................................................................

2(1) Explanation About Operating Results .............................................................................................................

2(2) Explanation About Financial Position ..............................................................................................................

2(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results .......

2

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

3(1) Quarterly Consolidated Balance Sheet ...........................................................................................................
(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income ............................................................................................................................................................
Quarterly Consolidated Statement of Income3(Six months ended September 30, 2023) .............................................................................................

55

Quarterly Consolidated Statements of Comprehensive Income(Six months ended September 30, 2023) .............................................................................................

6(3) Notes to Quarterly Consolidated Financial Statements ...................................................................................

7(Going Concern Assumption) ..........................................................................................................................

7(Notes on Significant Changes in the Amount of Shareholders’ Equity) .........................................................

7(Use of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements) ........

7(Changes in Accounting Policy) ......................................................................................................................

7-3-1. Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the six months ended September 30, 2023, the U.S. continued to raise interest rates to counter inflation as
prices kept rising, and the global economy witnessed a tug of war between curbing economic overheating andavoiding recession, with the end of interest rate hikes in sight. In Japan, despite the Bank of Japan’s revision of theinterest rate policy, price increases were spurred further by the depreciation in yen caused by the contrast between
Japan’s interest rate policy and that of the U.S. and Europe, significantly affecting people’s daily lives. In addition,
the economic slowdown and deceleration of growth in China are becoming apparent, resulting from factors such asconcerns over debt default of a major real estate company.
Under such conditions, sales of foamed equipment, which reduces CO2 emissions of asphalt plants, expanded andthe maintenance business of concrete plants performed strongly in Japan, and there were some signs of recovery
in investment for facility replacement by road pavement companies, who are the main users of asphalt plants.
Nevertheless, the Group continued to be affected by the impact of the economic slowdown and deceleration ofgrowth in China. As a result, consolidated net sales of the Nikko Group came to 16,982 million yen for the period
under review (down 9.5% from the same period a year earlier). In terms of profits, consolidated operating income
totaled 269 million yen (down 32.5% from the same period a year earlier) due to the impact of an increase inresearch and development towards decarbonization and development of global products as well as an increase in
human capital investment. Consolidated ordinary income came to 455 million yen (down 16.9% from the same
period a year earlier), while quarterly net income attributable to owners of parent totaled 348 million yen (up 33.9%
from the same period a year earlier).
Results by segment are as follows.
<Asphalt Plant-Related Business>
Net sales of products in Japan increased compared with the same period a year earlier. Net sales of themaintenance business in Japan and overseas net sales decreased compared with the same period a year earlier.
As a result, net sales of the business declined 17.7% to 7,114 million yen from the same period a year earlier. Neworders received and order backlog in the period under review increased compared with a year earlier.
<Concrete Plant-Related Business>
Net sales of the maintenance business in Japan increased compared with the same period a year earlier. Net salesof products in Japan and overseas net sales declined compared with the same period a year earlier. As a result, net
sales of the business declined 4.9% to 5,049 million yen from the same period a year earlier. New orders received
and order backlog in the period under review increased compared with a year earlier.
<Environment- and Conveyor-Related Business>
Net sales of both environmental products and conveyor products increased compared with the same period a year
earlier. As a result, net sales of the business increased 18.6% to 1,450 million yen from the same period a yearearlier. New orders received in the period under review increased compared with a year earlier, while order backlog
declined year on year.
<Other Business>
Net sales of hand tools increased from the same period a year earlier. Net sales of crushers and temporary
construction materials declined compared with the same period a year earlier. As a result, net sales of the businessdeclined 5.7% to 3,367 million yen from the same period a year earlier. New orders received and order backlog inthe period under review increased compared with a year earlier.
(2) Explanation About Financial Position
Total assets at the end of the reporting period were 57,127 million yen, increasing 4,999 million yen from the end of
the previous fiscal year.
Current assets came to 36,762 million yen, up 3,039 million yen from the end of the previous consolidated fiscalyear. Main factors contributing to the change are increases of 2,995 million yen in cash and cash equivalents, 2,454
million yen in work in process, and 153 million yen in merchandise and finished goods as well as decreases of
1,002 million yen in accounts receivable-trade and 989 million yen in notes receivable-trade. Noncurrent assets
came to 20,364 million yen, up 1,959 million yen from the end of the previous consolidated fiscal year. Main factors
contributing to the change are increases of 1,196 million yen in investment securities and 894 million yen inproperty and equipment as well as a decline of 393 million yen in deferred tax assets.
Liabilities totaled 24,754 million yen, up 4,231 million yen from the end of the previous fiscal year. Main factors
contributing to the change are increases of 2,503 million yen in long-term loans, 1,691 million yen in contract
liabilities, and 268 million yen in electronically recorded obligations as well as a decline of 203 million yen in notes
and accounts payable-trade.
Net assets came to 32,372 million yen, up 768 million yen from the end of the previous consolidated fiscal year.
Main factors contributing to the change are an increase of 852 million yen in valuation difference on available-forsale securities and a decline of 225 million yen in retained earnings.
As a result, equity ratio dropped to 56.8% from 60.7% 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, 2024 that was disclosed on August
10, 2023.

-4-2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and cash equivalents
Notes receivable-trade
Accounts receivable-trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Buildings and structures (net)Land
Construction in progress
Other (net)Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-5-

As of September 30, 2023

10,317
2,357
6,645
2,233
1,794
7,423
1,657
1,294
(1)
33,723

13,313
1,367
5,642
2,020
1,948
9,878
1,643
949
(0)
36,762

5,945
3,878
236
1,779
11,839

6,145
4,208
626
1,752
12,733

130
889
1,020

212
969
1,182

3,488
7
14
981
1,183
(130)
5,544
18,404
52,127

4,684
107
13
588
1,185
(130)
6,447
20,364
57,127(million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Accounts payable-factoring
Short-term loans payableIncome taxes payable
Accounts payable-otherAdvances received
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other
Total current liabilities
Long-term liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Retirement benefit-related liabilities
Other
Total 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
Deferred gains or losses on hedges
Accumulated retirement benefit-related
adjustment
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-6-

As of September 30, 2023

3,012
858
2,355
3,312
265
644
17
3,713
417
76
172
492
15,338

2,809
1,127
2,248
3,596
249
502
17
5,405
465
40
74
525
17,061

2,449
0
235
2,166
333
5,184
20,523

4,953
49
183
2,166
340
7,693
24,754

9,1977,934
13,628(760)
29,999

9,197
7,946
13,402(738)
29,808

1,177

2,030

582
-684
30

(115)

(108)

1,644

2,637

(40)
31,604
52,127(72)
32,372
57,127

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Six months ended September 30, 2023)(million yen)Six month ended
Six month ended
September 30, 2022
September 30, 2023
(from April 1, 2022
(from April 1, 2023
to September 30, 2022)
to September 30, 2023)
Net sales
18,76016,982
Cost of sales
13,83911,923Gross profit
4,921
5,058
Selling, general and administrative expenses
4,521
4,788
Operating income
399
269
Non-operating income
Interest income
18Dividends income
7399
Foreign exchange gains
8397
Other
3655
Total non-operating income
195261
Non-operating expenses
Interest expenses
3559
Compensation for damage
412
Other
53
Total non-operating expenses
4675
Ordinary income
548
455
Extraordinary income
Gain on sales of investment securities
067
Gain on sale of non-current assets
2
Total extraordinary income070
Extraordinary loss
Loss due to the spread of COVID-19
23
Other0Total extraordinary loss
230
Quarterly income before income taxes
524
526
Income taxes-current
220
146
Income taxes-deferred
75
52
Total income taxes
295
199
Quarterly net income
229
327
Quarterly loss attributable to non-controlling interests
(30)
(21)
Quarterly net income attributable to owners of parent259
348-7-

(Consolidated Statements of Comprehensive Income)(Six months ended September 30, 2023)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
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 interests

Six month ended
September 30, 2022
(from April 1, 2022
to September 30, 2022)
229(million yen)Six month ended
September 30, 2023
(from April 1, 2023
to September 30, 2023)
327

(55)

852

179
6130
359

30
90
7980
1,307

395

1,340(36)(32)-8-

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Use of special accounting methods for preparation of quarterly consolidated financial statements)
Not applicable(Changes in Accounting Policy)
Not applicable-9-