Financial Results for First Quarter of Fiscal Year Ending March 31, 2022
[Japanese GAAP] (Consolidated Data)
Company Name:
Stock Code:
Representative:

Nikko Co., Ltd.
6306
Representative Director and PresidentManaging Director and General Manager
For inquiries:of the Financial Division
Scheduled date for filing
August 12, 2021
the quarterly report:

August 6, 2021
Stock Exchange Listing: Tokyo Stock Exchange
URL:http://www.nikko-net.co.jp
Masaru Tsuji
Hiroshi Fujii

TEL: +81-78-947-3141

Scheduled date forcash dividends:－Quarterly earnings supplementary explanatory materials:

Yes

Quarterly financial results briefing session:

Yes (for institutional investors, analysts, andnewspaper reporters)(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for First Quarter of Fiscal Year Ending March 31, 2022 (April 1, 2021 - June 30, 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%Three months ended8,817
21.3375(8.1)
519(47.0)
378(49.3)
June 30, 2021
Three months ended
7,271
(9.1)
408
47.9
979
170.7
746
176.3
June 30, 2020
Note: Comprehensive income:Three months ended June 30, 2021 343 million yen (-63.0%)
Three months ended June 30, 2020

yen

Diluted quarterly net
income per share
Quarterly net income
yen

9.91－

19.29

－

Quarterly net income
per share
Three months ended
June 30, 2021
Three months ended
June 30, 2020

928 million yen (-%)

(2) Consolidated Financial Position
Total assets
million yen
Three months ended
48,744
June 30, 2021
Fiscal year ended
48,697
March 31, 2021
(Reference) Capital: Three months ended June 30, 2021
Fiscal year ended March 31, 2021

Net assets
million yen%

Net assets per shareyen

31,10963.8

813.4031,45164.5

823.01

31,083 million yen
31,427 million yen

2. Dividends

Fiscal year ended March 31, 2021
Fiscal year ending March 31, 2022
Fiscal year ending March 31, 2022
(Forecasts)

End of 1Q
yen－－

Equity ratio

End of 2Q
yen
15.00

Annual dividends
End of 3Q
yen－Year-endyen
18.00

15.00

－15.00(Note) Revision of previously announced dividend targets during this reporting period: None–1–Totalyen
33.00
30.00

3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)(Percentages indicate year-on-year changes from full fiscal year and first quarter of the previous fiscal year, respectively)

Net sales
2Q (first half)
Full year

million yen
19,00039,000Operating income
%
4.3
3.0

million yen
1,100
2,300%
10.0(0.1)

Ordinary income
million yen
1,300
2,500%(18.1)(15.9)Net income attributableto owners of parent
million yen%
850(22.7)
1,700(18.3)(Note) Revision of previously announced earnings forecasts during this reporting period: None–2–per share
Net incomeyen
22.16
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
Note: Please refer to (Changes in Accounting Policy) on page 7 in the Accompanying Material for details.
(4) Shares issued (common stock)(i) Number of shares issued at end ofperiod (including treasury stock)(iii) Average number of shares
outstanding during the period(quarter-to-date)

As of June 30, 2021

40,000,000 shares As of March 31, 2021 40,000,000 shares

As of June 30, 2021

1,817,260 shares

As of March 31, 2021 1,814,260 shares

As of June 30, 2021

38,183,407 shares

As of June 30, 2020 38,704,370 shares*This quarterly 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 futureperformance. Actual results may differ significantly from forecasts due to various factors. For the assumptions
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 ofConsolidated 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 onFriday, August 6, 2021.
The Company has scheduled a financial results briefing session (conference call) for securities analysts on
Wednesday, August 25, 2021.

–3–

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

5(1) Explanation About Operating Results ··························································································

5(2) Explanation About Financial Position ··························································································

5(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results ····

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

6(1) Quarterly Consolidated Balance Sheet ························································································

6(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ·····

8Quarterly Consolidated Statement of Income
Three Months Ended June 30, 2020 ························································································

8Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2020 ······················································································

9(3) Notes to Quarterly Consolidated Financial Statements ··································································· 10(Going Concern Assumption) ····································································································10(Notes on significant changes in the amount of shareholders’ equity) ················································· 10(Changes in Accounting Policy) ·································································································

10(Additional Information) ············································································································10–4–1.

Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the three months ended June 30, 2021, the economic environment continued to be severe in Tokyo andother major cities of Japan that are still under a state of emergency due to COVID-19. Globally, the situation isunclear with mixed situations: some regions and countries continue to face difficult situations similar to Japan,
while other countries are witnessing increased economic activities with rising resources and materials as well as
making progress in vaccinations due to anticipation of a post-COVID-19 world with concerns of rising inflation.
Under such circumstances, with relatively small direct impact from COVID-19, the Nikko Group posted strong
performance led by the Asphalt Plant-Related Business and Concrete Plant-Related Business, resulting inconsolidated net sales of 8,817 million yen (up 21.3% from the same period a year earlier) in the quarter underreview. In terms of profits, consolidated operating income totaled 375 million yen (down 8.1% from the same
period a year earlier) due to an increase in research and development costs towards initiatives for reducing theenvironmental burden and realizing a decarbonized society. Consolidated ordinary income came to 519 million
yen (down 47.0% from the same period a year earlier) due to large scale special dividends recorded in the samequarter of the previous year, while quarterly net income attributable to owners of parent was 378 million yen(down 49.3% from the same period a year earlier).
Results by segment are as follows.
<Asphalt Plant-Related Business>
Net sales of both products and the maintenance business in Japan increased compared with the previous period.
Overseas net sales increased compared with the previous period. As a result, net sales of the business rose
26.7% from the previous period to 5,058 million yen. New orders received and order backlog in the period underreview declined compared with a year earlier.
<Concrete Plant-Related Business>
Net sales of products in Japan and overseas and those of the maintenance business in Japan increased from theprevious period. As a result, net sales of the business rose 33.4% from the previous period to 1,972 million yen.
New orders received and order backlog in the period under review increased compared with a year earlier.
<Environment- and Conveyor-Related Business>
Sales of environmental products increased from the previous period, but those of conveyer products decreased
from the previous period. As a result, net sales of the business declined 19.1% from the previous period to 424
million yen. New orders received in the period under review decreased compared with a year earlier, while orderbacklog increased year on year.
<Other Business>
Net sales of hand tools and waterproof boards increased from the previous period. As a result, net sales of thebusiness increased 6.7% to 1,361 million yen. New orders received and order backlog in the period under review
increased compared with a year earlier.
(2) Explanation About Financial Position
Total assets at the end of the reporting period were 48,744 million yen, up 46 million yen from the end of theprevious fiscal year.
Current assets were 32,500 million yen, up 118 million yen from the end of the previous fiscal year. Main factors
contributing to the change are decrease of 2,378 million yen in notes and accounts receivable-trade, andincrease of 959 million yen in work in process and partly-finished construction, 707 million yen in electronicallyrecorded monetary claims, 408 million yen in cash and cash equivalents, and 262 million yen in merchandise andfinished goods. Non-current assets came to 16,243 million yen, decreasing 72 million yen from the end of the lastconsolidated fiscal year. This was due mainly to investment securities decreasing 141 million and a 42 million yen
increase in property and equipment.
Liabilities totaled 17,634 million yen, up 388 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 1,205
million yen and accounts payable-other rising 318 million yen, while provision for bonuses, income taxes payable,
electronically recorded obligations, and other current liabilities declining 409 million yen, 329 million yen, 149
million yen, and 128 million yen, respectively.
Net assets came to 31,109 million yen, decreasing 341 million yen from the end of the last consolidated fiscalyear. Factors contributing to the change include retained earnings declining 308 million yen and valuationdifference on available-for-sale securities decreasing 52 million yen.
As a result, equity ratio fell to 63.8% from 64.5% at 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 May14, 2021.
–5–2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(million 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 and partly-finishedconstruction
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 non-current assets
Total assets–6–

As of June 30, 2021

12,491
10,5301,477
1,494

12,899
8,152
2,185
1,757

4,236

5,196

1,470
685
(5)
32,381

1,523
786
(1)
32,500

9,183
660

9,225
658

4,528
11
11792
1,259
(131)
6,472
16,315
48,697

4,387
11
10847
1,233
(131)
6,360
16,24348,744

(million 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–7–

As of June 30, 2021

2,591
1,015
2,806
2,188586
765
2,949
53176126782
14,418

2,490
865
2,933
2,203
257
1,083
4,155
121
15
74
653
14,853

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

293
2
136
2,002
346
2,781
17,634

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

9,197
7,926
13,058(805)
29,376

1,592

1,539

264

280

(114)

(112)

1,742

1,707

24
31,451
48,69725
31,10948,744

(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Three Months Ended June 30, 2020)(million yen)Three Months Ended
Three Months EndedJune 30, 2020
June 30, 2021
(from April 1, 2020,(from April 1, 2021,
to June 30, 2020)
to June 30, 2021)
Net sales
7,271
8,817
Cost of sales
5,060
6,449
Gross profit
2,210
2,367
Selling, general and administrative expenses
1,802
1,992
Operating income
408
375
Non-operating income
Interest income
00
Dividends income
516
94
Foreign exchange gains
1917
Outsourcing service income
49
49
Other business
1011
Total non-operating income
596
173
Non-operating expenses
Interest expenses
613
Compensation for damage
87
Other business98
Total non-operating expenses
2429
Ordinary income
979
519
Extraordinary income
Gain on sales of investment securities
8666
Total extraordinary income
8666
Extraordinary loss
Loss on sales of investment securities
10
Total extraordinary loss
10
Quarterly income before income taxes
1,064
586
Income taxes-current
393
244
Income taxes-deferred
(75)
(37)
Total income taxes
317
207
Quarterly net income
746
378
Quarterly net income attributable to owners of parent
746
378

–8–

(Consolidated Statements of Comprehensive Income)(Three Months Ended June 30, 2020)

746(million yen)Three Months Ended
June 30, 2021
(from April 1, 2021,
to June 30, 2021)
378

177(52)

04
181
928

161(34)
343

928

342

01

Three Months Ended
June 30, 2020
(from April 1, 2020,
to June 30, 2020)
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 interests–9–(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(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, March31, 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 “contract liabilities” from the first quarter of the current fiscal year. In accordance with the transitional
treatment prescribed by Article 89-2 of the Accounting Standard for Revenue Recognition, the Company did notreclassify the figures for the previous fiscal year using the new description method. Furthermore, in accordancewith 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 the information that broke
down the profits resulting from the contracts with customers in the first quarter of the previous 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, July 4,2019) and other standards from the beginning of the first quarter under review. In accordance with the transitional
treatments prescribed in Article 19 of the Accounting Standard for Fair Value Measurement and Article 44-2 of theAccounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Company plans toapply the new accounting policies prescribed in the Accounting Standard for Fair Value Measurement and otherstandards through the future.
The application of the said accounting standard does not affect the quarterly consolidated financial statement.

(Additional Information)
Not applicable– 10 –