Financial Results for First Quarter of Fiscal Year Ending March 31, 2021
[Japanese GAAP] (Consolidated Data)
August 6, 2020
Nikko Co., Ltd.
Stock Exchange Listing: Tokyo Stock Exchange
6306
URL: http://www.nikko-net.co.jp
Representative Director and President
Masaru Tsuji
Managing Director and General Manager
For inquiries:
Hiroshi Fujii
Telephone: +81-78-947-3141
of the Financial Division
Scheduled date for filing theAugust 13, 2020
Scheduled date for cash dividends:–quarterly report:
Quarterly earnings supplementaryYes
explanatory materials:
Quarterly financial results briefing
Yes (for institutional investors, securities analysts, and newspaper reporters)
session:Company Name:
Stock Code:
Representative:(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for First Quarter of Fiscal Year Ending March 31, 2021 (April 1, 2020 - June 30, 2020)(1) Consolidated Operating Results (cumulative)(% represents year-on-year change)
Quarterly net income
Net sales
Operating income
Ordinary income
attributable to ownersof parent
million yen%
million yen%million yen%million yen%Three months ended
7,271
(9.1)
408
47.9979
170.7746
176.3
June 30, 2020Three months ended
8,001
47.7
276361
315.4
270
106.6
June 30, 2019
Note: Comprehensive income:Three months ended June 30, 2020: 928 million yen (-%)
Three months ended June 30, 2019: 27 million yen (-%)

yen

Diluted quarterly
net income
per share
yen

19.29

-7.05

-

Quarterly net income
per share
Three months ended
June 30, 2020Three months ended
June 30, 2019

The Company carried out a one-to-five split of its common stock effective on October 1, 2019. Quarterly net income per share wascalculated assuming that the split took place at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets
million yen
Three months ended
46,484
June 30, 2020
Fiscal year ended
45,677
March 31, 2020

Net assets
million yen%

Net assets per shareyen

30,33265.2

785.2330,29366.3

780.68(Reference) Capital: Three months ended June 30, 2020: 30,306 million yen
Fiscal year ended March 31, 2020: 30,267 million yen–1–Equity ratio

2. Dividends

Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021Fiscal year ending
March 31, 2021
(Forecast)

Annual dividends
End of 3Q
yen

End of 1Q
yen

End of 2Q
yen

Year-end
yenTotal－

100.00

－

20.00

－

15.00

－

15.00

30.00

yen

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

The Company carried out a one-to-five split of its common stock effective as of October 1, 2019. The year-end dividend figure for the fiscal
year ended March 31, 2020 takes this stock split into account and “-” is entered for the total annual dividends. The dividends for the fiscalyear ended March 31, 2020 include commemorative dividend for the Company’s 100th anniversary consisting of 50.00 yen per share asinterim dividend and 10.00 yen per share as year-end dividend.

3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)(Percentages indicate year-on-year changes from full fiscal year and first half of theprevious fiscal year, respectively)
Net income attributable Net income
Net sales
Operating income
Ordinary income
to owners of parentper share
million yen%million yen%million yen%million yen%yen
2Q (first half)
18,5007.9
1,100 14.6
1,550
49.8
1,050
4.7
27.21
Full year
36,500
3.8
2,200
7.1
2,700
26.0
1,850
16.4
47.94
(Note) Revision of previously announced earnings forecasts during this reporting period: None–2–* 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.: 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)

(ii)

Number of shares
outstanding at end of period(including treasury shares)
Number of shares held intreasury at end of period

1Q of fiscal year ending
March 31, 2021
1Q of fiscal year ending
March 31, 2021(iii) Average number of shares
1Q of fiscal year ending
outstanding during the period
March 31, 2021
(quarter-to-date)

40,000,000 shares

1,404,830 shares

38,704,370 sharesFiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2020
1Q of fiscal year
ended March 31, 2020

40,000,000 shares

1,229,230 shares

38,589,549 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 6 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 onThursday, August 6, 2020.
The Company has scheduled a financial results briefing session (conference call) for securities analysts on Thursday,
August 20, 2020.

–3–

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

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

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

6(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results......

62. Quarterly Consolidated Financial Statements and Notes ...................................................................................

7(1) Quarterly Consolidated Balance Sheet..........................................................................................................

7(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income .......

9Quarterly Consolidated Statement of Income
Three Months Ended June 30, 2020 ....................................................................................................

9Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2020 ....................................................................................................

10(3) Notes to Quarterly Consolidated Financial Statements .................................................................................

11(Going Concern Assumption).......................................................................................................................

11(Notes on significant changes in the amount of shareholders’ equity) .........................................................

11(Changes in Accounting Policy) ...................................................................................................................

11(Additional Information)................................................................................................................................

11–4–Qualitative Information on Quarterly Results

1.
(1)Explanation About Operating Results
During the three months ended June 30, 2020, economic environment in Japan and abroad remained severe dueto the impact of the novel coronavirus infection (COVID-19).
In spite of such circumstances, the domestic construction-related industry, with which the Nikko Group has closerelationship, was relatively less affected by the impact of COVID-19. The Nikko Group firmly pursued orders andsaw an increase in orders received by approximately 30% in the first quarter compared with a year earlier. On theother hand, since exports declined and the plants in China were closed for a certain period of time, net sales wereslightly affected in the form of some delays in delivery.
In the three months ended June 30, 2020, consolidated net sales were 7,271 million yen, down 9.1% from a year
earlier. In terms of profits, consolidated operating income totaled 408 million yen, up 47.9% year-on-year,
consolidated ordinary income totaled 979 million yen, up 170.7% year-on-year, and quarterly net income
attributable to owners of parent reached 746 million yen, up 176.3% year-on-year. Operating income on sales
increased 2.1 percentage points compared with the same period a year earlier to 5.6%.
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 declined compared with the previous period. As a result, net sales of the business rose 1.9%
from the previous period to 3,991 million yen. New orders received and order backlog in the period under review
increased 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 declined from theprevious period. As a result, net sales of the business declined 39.5% from the previous period to 1,478 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 conveyer products increased from the previous period, but those of environmental products decreased
from the previous period. As a result, net sales of the business rose 6.5% from a year earlier to 524 million yen.
New orders received and order backlog in the period under review increased compared with a year earlier.

<Other Business>
Net sales of temporary construction materials, hand tools, and crushers increased from the previous period. As aresult, net sales of the business increased 11.0% to 1,275 million yen. New orders received and order backlog inthe period under review increased compared with a year earlier.

–5–(2)

Explanation About Financial Position
Total assets at the end of the reporting period were 46,484 million yen, up 807 million yen from the end of theprevious fiscal year.
Current assets were 31,641 million yen, up 214 million yen from the end of the previous fiscal year. Factors
contributing to the change were inventories and other current assets increasing 1,645 million yen and 494 million
yen, respectively, and cash and cash equivalents and notes and accounts receivable-trade decreasing 1,160
million yen and 957 million yen, respectively. Noncurrent assets were 14,843 million yen, up 593 million yen fromthe end of the previous fiscal year. This was due mainly to property and equipment and investment securities
increasing 376 million yen and 234 million yen, respectively.
Liabilities totaled 16,152 million yen, up 768 million yen from the end of the previous fiscal year. Factors
contributing to the change include accounts payable-other and other current liabilities rising 403 million yen and1,444 million yen, respectively, and notes and accounts payable-trade, accounts payable-factoring, income taxes
payable, and provision for bonuses falling 486 million yen, 270 million yen, 269 million yen, and 287 million yen,respectively.
Net assets were 30,332 million yen, up 38 million yen from the end of the previous fiscal year. Factors contributing
to the change include net income attributable to owners of parent recording 746 million yen, an increase invaluation difference on available-for-sale securities of 177 million yen, and a decrease due to dividend payment of
775 million yen, and purchase of treasury stock of 114 million yen.
As a result, equity ratio fell to 65.2% from 66.3% 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, 2021 that was disclosed on May 14,2020.

–6–2.

Quarterly Consolidated Financial Statements and Notes(1)

Quarterly Consolidated Balance Sheet(mil. yen)
As of March 31, 2020

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 noncurrent assets
Total assets–7–

As of June 30, 2020

12,622
9,902
1,709
935

11,462
8,944
1,900
2,737

4,473

4,381

1,237
560
(14)
31,426

1,172
1,054
(12)
31,641

7,362
431

7,739
427

4,341
11
12
953
1,287(150)6,456
14,25045,6774,575
1111946
1,280(149)
6,676
14,84346,484

(mil. yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Accounts payable-factoring
Short-term loans payable
Income taxes payable
Accounts payable-other
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–8–

As of June 30, 2020

2,430
1,176
3,427
1,548
627
538
415
65542,260
12,545

1,944
1,188
3,157
1,636
357
942
127
4
129
3,704
13,192

239
5
145
2,089
358
2,838
15,383

337
5
151
2,112
352
2,960
16,152

9,197
7,918
12,632(420)
29,328

9,197
7,918
12,603(534)
29,185

1,119

1,296

55

55

(235)

(230)

939

1,121

25
30,29345,67725
30,332
46,484

(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)Three Months Ended June 30, 2020(mil. yen)Three Months Ended June 30, Three Months Ended June 30,2019 (from April 1, 2019, to2020 (from April 1, 2020, toJune 30, 2019)
June 30, 2020)

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
Foreign exchange losses
Compensation for damage
Other businessTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of investment securitiesTotal extraordinary loss
Quarterly income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly net income
Quarterly net income attributable to owners of parent

–9–

8,001
5,838
2,163
1,886
276

7,271
5,060
2,210
1,802
408

0
105
17
123

0
516
1959
596

17
14
3
2
37
361

6
8
924
979

68
68

86
86

430
246
(86)
160
270
270

1
1
1,064
393
(75)
317
746
746

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

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Retirement benefit-related adjustment
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners of parent
Quarterly comprehensive income attributable to non-controllinginterests– 10 –(mil. yen)Three Months Ended Three Months Ended
June 30, 2019 (from June 30, 2020 (fromApril 1, 2019, to June April 1, 2020, to June30, 2019)
30, 2020)
270
746
(179)
(66)
3(242)
27

177
04
181
928

27928-0(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)
Not applicable(Additional Information)
Not applicable– 11 –