Financial Results for the Fiscal Year Ended March 31, 2020 [Japanese GAAP](Consolidated Data)
May 14, 2020
Stock Exchange Listing: Tokyo Stock Exchange
URL:http://www.nikko-net.co.jp
Masaru Tsuji

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 of the Annual General
June 25, 2020
Meeting of Shareholders:
Scheduled date for filing the annual
June 26, 2020
securities report:
Full-year earnings supplementary explanatory materials:
Financial results briefing session:

Hiroshi Fujii

Telephone: +81-78-947-3141

Scheduled date forcash dividends:

June 26, 2020

Yes
Yes (for securities analysts)(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for the Fiscal Year Ended March 31, 2020 (April 1, 2019 - March 31, 2020)(1) Consolidated Operating Results(% represents year-on-year change)
Net income attributable to
Net sales
Operating income
Ordinary income
owners of parent
million yen%
million yen%
million yen%
million yen%
Fiscal year ended
35,151
10.6
2,053
43.9
2,142
35.9
1,588
18.1
March 31, 2020
Fiscal year ended
31,780(9.5)
1,427(32.2)
1,576(29.6)
1,345(9.7)
March 31, 2019
Note: Comprehensive Fiscal year ended
Fiscal year ended
592 million yen (-2.6%)
607 million yen (-67.4%)
income:March 31, 2020
March 31, 2019
Net income per share
yen
Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2019

Diluted net income per
Ordinary profit to
Net sales
Return on equity
share
total assets operating margin
yen
%
%
%

41.17

－

5.2

4.8

5.8

35.12

－

4.4

3.5

4.5

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

(2) Consolidated Financial Position
Total assets
million yen
Fiscal year ended
45,677
March 31, 2020
Fiscal year ended
43,969March 31, 2019
Fiscal year ended(Reference) Capital:
March 31, 2020

Net assets
million yen%

Net assets per shareyen

30,29366.3

780.6830,41469.2

793.7630,267 million yen

Equity ratio

Fiscal year ended
March 31, 2019

30,414 million yen

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

(3) Consolidated Cash Flows

million yen

million yen

million yen

Cash and cash
equivalents at end ofyear
million yen

3,839

(639)

(868)

12,575(218)(1,021)(526)

10,300Cash flows fromoperating activities
Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2019

Cash flows from investing
activities– 1 –Cash flows fromfinancing activities

2. Dividends
Annual dividends
End of 1Q End of 2Q End of 3Q Year-end

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)

Total

Total
dividends

Dividend
payout ratio(consolidated)

Rate of total
dividends to
net assets(consolidated)

yen

yen

yen

yen

yen

million
yen

%

%

–

30.00

–

30.00

60.00

459

34.2

1.5

–

100.00

–

20.00

–

1,550

97.6

5.1

–

15.00

–

15.00

30.00

62.6

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 fiscal
year 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 Ended March 31, 2021 (April 1, 2020 - March 31, 2021)(Percentages indicate year-on-year changes from full fiscal year and first half of the previous fiscal year, respectively)
Net income
per share
Net sales
Operating income Ordinary income
attributable to
Net income
owners of parent
millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
yen
2Q (first half)
18,500
7.9
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

– 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

(2)

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 (5) Notes to Consolidated Financial Statements (Changes in Accounting Policy) of 3.
Consolidated Financial Statements and Notes to the Statements on page 15 of Accompanying Material
for details.

(3)

Shares issued (common stock)(i)

Number of shares issued at end of
period (including treasury stock)

Fiscal year ended
March 31, 2020(ii) Number of shares held in treasury at
end of period

Fiscal year ended
March 31, 2020(iii) Average number of shares outstanding Fiscal year ended
during the period
March 31, 2020

Fiscal year
40,000,000
ended March
shares31, 2019
Fiscal year
1,229,230
ended March
shares31, 2019
Fiscal year
38,589,549
ended March
shares31, 2019

8,000,000 shares
336,569 shares
7,661,642 shares* This report is exempt from audit procedures by certified public accountant or 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 the forecasts herein and other notice on the use of earnings forecasts, please refer to (1) Overview ofOperating Results for Fiscal Year Ended March 31, 2020 in 1. Overview of Operating Results, etc. on page 2 in theaccompanying materials.
(How to obtain the earnings supplementary explanatory materials and the date of the financial results briefing session)
The Company is scheduled to post the earnings supplementary explanatory materials on its website on Thursday, May
14, 2020.
The Company has scheduled a financial results briefing session (conference call) on Tuesday, June 2, 2020.

– 3 –Accompanying Material – Table of Contents
1.

Overview of Operating Results, etc. ......................................................................................................................... 5(1)

Overview of Operating Results for Fiscal Year Ended March 31, 2020 .................................................................... 5(2)

Overview of Financial Conditions for Fiscal Year Ended March 31, 2020 ................................................................ 7(3)

Basic Policy Concerning Profit Distribution and Dividends for the Current Term and Next Term .............................. 9(4)

Risks Associated with Business, etc. ........................................................................................................................ 92.

Status of the Nikko Corporate Group...................................................................................................................... 10

3.

Basic Approach to the Selection of Accounting Standards ..................................................................................... 124.

Consolidated Financial Statements and Notes to the Statements .......................................................................... 13(1)

Consolidated Balance Sheets ................................................................................................................................ 13(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............................ 15(Consolidated Statements of Income) .................................................................................................................... 15(Consolidated Statements of Comprehensive Income) .......................................................................................... 16(3)

Consolidated Statements of Changes in Equity ..................................................................................................... 17(4)

Consolidated Statements of Cash Flows ................................................................................................................ 19(5)

Notes to Consolidated Financial Statements .......................................................................................................... 20(Going Concern Assumption) ................................................................................................................................. 20(Changes in Accounting Policy) .............................................................................................................................. 20(Change in the method of presentation) ................................................................................................................. 20(Segment Information) ............................................................................................................................................ 21(Per Share Information) .......................................................................................................................................... 25(Significant Subsequent Events)............................................................................................................................. 25

5.

Other ...................................................................................................................................................................... 26

– 4 –

1.

Overview of Operating Results, etc.
(1) Overview of Operating Results for Fiscal Year Ended March 31, 2020(i) Operating Results for Fiscal Year Ended March 31, 2020
During the fiscal year under review, Japanese as well as global economy remained strong in general until thearrival of the novel coronavirus infection. The economic climate, however, changed completely once it became apandemic. After the coronavirus infection spread, economic activities in Japan and elsewhere slowed down
significantly and the economic growth rates are expected to remain largely negative in the future. It is also notpossible to foresee when the economic activities in Japan and abroad would get back to normal.
Under such circumstances, however, the construction-related industry, to which the Nikko Group is closely
related, so far has not felt much direct impact and has performed steadily. Going forward, the impact on theconstruction-related industry on the whole is expected to continue to be small, but the Company will monitor the
future investment trend of its customers more closely than ever.
In August 2019, the Company formulated and announced the New Medium-Term Management Plan from fiscal
year 2019 to 2021. In the formulation of the New Medium-Term Management Plan, we first painted a vision ofwhat the Nikko Group wants to be in 10 years and then set numerical targets that need to be achieved in thefirst three years. In particular, we aim to achieve net sales of 50.0 billion yen, 1.5 times the current level, in 10
years, and we set the targets for the final fiscal year of the New Medium-Term Management Plan as 38.0 billion
yen in net sales and 3.0 billion yen in operating income. The New Medium-Term Management Plan has fivelong-term Basic Policies. Specifically, they are to improve profit margin in Japan to 10% by strengthening thedomestic revenue base, double overseas sales from 4.5 billion yen by establishing business bases in the
ASEAN region, promote new businesses, build a pillar with new products in the industrial and construction
machinery fields and generate 10.0 billion yen in net sales of the new businesses, significantly improve laborproductivity through work-style reform of centralization of office work and utilization of IoT and AI, and set forth
ROE as the KPI and achieve 8% or higher in ROE and simultaneously enhance returns to shareholders. With
these five basic policy items at the center, we will strengthen corporate governance and put into practicebusiness management that is highly transparent and vibrant.
As for the Company’s operating results for the period under review, net sales of the Asphalt Plant-Related
Business, the Company’s mainstay business, increased in Japan compared with the previous year. This wasprimarily attributable to the steady orders for road-related public projects nationwide as well as the accumulatedorder backlog in the latter half of the previous fiscal year in reaction to the operation suspension for a certain
period of time following the exposure of antitrust law violations by a major road builder a year before that.
Further, net sales of the Concrete Plant-Related Business rose compared with a year earlier, as the initial orderbacklog was higher than the level a year ago.
Overseas, net sales of the Asphalt Plant-Related Business in China exceeded the level of the previous fiscal
year, when net sales had grown significantly on the back of the government’s proactive infrastructure investment
policy and tightening of environmental regulations. In overseas markets other than China, sales in Taiwan grewstrongly but they made little progress in the ASEAN market, which the Company positions as a strategic market.
As a result of these business activities, Nikko Group’s consolidated operating results are as follows.
Net sales for the period under review increased 10.6% to 35,151 million yen compared with a year earlier, as
sales at the Asphalt Plant-Related Business, Concrete Plant-Related Business, and Other Business increased
while those of Environment- and Conveyor-related Business declined.
In terms of profits, consolidated operating income increased 43.9% from a year earlier to 2,053 million yen,reflecting the sales growth and improvement in cost-of-sales ratio. Consolidated ordinary income rose 35.9%
compared with a year earlier to 2,142 million yen and net income attributable to owners of parent increased
18.1% from a year earlier to 1,588 million yen.
Overview of operating results by segment is as follows.
<Asphalt Plant-Related Business>
Net sales of the Asphalt Plant-Related Business in Japan rose 4.2% compared with a year earlier, as net salesof products increased despite a decline in sales of the maintenance business. Overseas net sales rose 14.2%
compared with a year earlier, as both those in China and exports increased from a year earlier. As a result, net
sales of the business rose 6.5% from a year earlier to 17,518 million yen. New orders received and orderbacklog in the period under review declined compared with a year earlier.
– 5 –<Concrete Plant-Related Business>
Net sales of the Concrete Plant-Related Business rose 16.0% compared with a year earlier to 9,158 million yen,
as net sales of both products and maintenance business increased from a year earlier. New orders received andorder backlog in the period under review increased compared with a year earlier.
<Environment- and Conveyor-Related Business>
Net sales of environmental products declined 31.9% compared with a year earlier. Net sales of conveyor
products were roughly at the same level as the previous year. As a result, net sales of the business declined
5.0% from a year earlier to 2,634 million yen. New orders received and order backlog in the period under review
declined compared with a year earlier.
<Other Business Such as Temporary Construction Materials and Hand Tools>
Net sales of temporary construction materials rose 11.5% compared with a year earlier. Net sales of hand tools
declined 4.3% compared with a year earlier. Net sales of crushers rose 4.7% compared with a year earlier. Net
sales of other businesses increased 48.9% compared with a year earlier as the mobile business and waterproof
board business grew significantly. As a result, net sales of the business rose 24.8% from a year earlier to 5,840
million yen. New orders received and order backlog in the period under review increased.

Net sales by business segment (comparison with the previous fiscal year)
EnvironmentAsphalt Plant- Concrete Plantand ConveyorRelated
Related
Other Business
RelatedBusiness
Business
Business
Fiscal year
ended March 31,
2020

Net sales (mil. yen)

Fiscal year
ended March 31,
2019

Net sales (mil. yen)

Share (%)

Share (%)

Total

17,518

9,158

2,634

5,840

35,151

49.8

26.1

7.5

16.6

100

16,434

7,893

2,775

4,677

31,780

51.7

24.8

8.7

14.7

100

Note: 1. Net sales are rounded down to the nearest million yen.
2. Shares are rounded to the first decimal place.
(ii)

Future Outlook
The impact of the coronavirus pandemic is expected to be relatively small on the construction-related business,
which is the Nikko Group’s business domain, compared with other industrial business. In addition, once thecoronavirus pandemic ends, the public construction investment is expected to grow as part of economic
measures.
Overseas, on the other hand, infrastructure investment continues to be active in China, the mainstay market,
and the market environment such as further tightening of environmental regulations and the full-fledged start of
the use of recycled mixture, where the Company can leverage the technological edge it has developed in Japan,
is expected to continue for the time being. In the ASEAN region, which the Company expects to be the future
growth market, it will proactively explore the market through Nikko Asia (Thailand) Co., Ltd. established in
Thailand.
For the fiscal year ending March 31, 2021, the Company expects to achieve consolidated net sales of 36,500
million yen, operating income of 2,200 million yen, ordinary income of 2,700 million yen and net income
attributable to owners of parent of 1,850 million yen.
We aim to further enhance shareholder returns and information disclosure.

– 6 –(2) Overview of Financial Conditions for Fiscal Year Ended March 31, 2020
(i)

Assets, Liabilities and Net Assets
Total assets at the end of the fiscal year (March 31, 2020) amounted to 45,677 million yen, an increase of 1,707
million yen from the end of the previous fiscal year.
Current assets came to 31,426 million yen, increasing 2,036 million yen from the end of the last consolidated
fiscal year. Main changes include an increase of 2,275 million yen in cash and cash equivalents, an increase of
619 million yen in inventories, a decline of 829 million yen in notes and accounts receivable-trade, and a 209
million yen in consumption taxes receivable.
Non-current assets came to 14,250 million yen, decreasing 328 million yen from the end of the last consolidated
fiscal year. Factors contributing to the change include an increase of 279 million yen in buildings and structures,
an increase of 208 million yen in machinery, equipment and vehicles, an increase of 255 million yen in land, anincrease of 377 million yen in deferred tax assets, and a decrease of 1,634 million yen in investment securities.
Liabilities totaled 15,383 million yen, increasing 1,829 million yen from the end of the last consolidated fiscal
year. The increase was due mainly to an increase of 238 million yen in electronically recorded obligations,accounts payable-factoring increasing 1,036 million yen, and an increase of 205 million yen in income taxes
payable, and respective decreases of 92 million yen in accounts payable-other and 92 million yen in deferred
tax liabilities.
Net assets came to 30,293 million yen, decreasing 121 million yen from the end of the last consolidated fiscal
year. Factors contributing to the change include an increase from recording of 1,588 million yen in net income
attributable to owners of parent, a decrease of 891 million yen in valuation difference on available-for-salesecurities and a decline from payment of 1,005 million yen in dividends.
As a result, equity ratio came to 66.3%, down from 69.2% at the end of the previous fiscal year.

– 7 –

(ii)

Cash Flows
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2019

ChangeCash flows from operating activities (million yen)

3,839

(218)

4,058

Cash flows from investing activities (million yen)(639)

(1,021)

382

Cash flows from financing activities (million yen)

(868)

(526)

(342)

(55)

(43)

(12)

2,275

(1,810)4,086

Cash and cash equivalents at beginning of year (million yen)

10,30012,110(1,810)Cash and cash equivalents at end of year (million yen)

12,575

10,3002,275

Effect of exchange rate changes on cash and cash equivalents(million yen)
Net increase (decrease) in cash and cash equivalents(million yen)

Cash provided by operating activities totaled 3,839 million yen (compared with 218 million yen in cash used inoperating activities in the previous fiscal year). Major items in cash flow from operating activities include 2,440
million yen in net income before income taxes and 611 million yen in depreciation and amortization as well as
373 million yen in gain on sale and valuation of investment securities, 687 million yen in increase in inventories,
1,317 million yen in increase in notes and accounts payable-trade, and 769 million yen in income taxes paid.
Cash used in investing activities totaled 639 million yen (compared with 1,021 million yen in cash used ininvesting activities in the previous fiscal year). Major items in cash flow from investing activities include 772
million yen in proceeds from sales and redemption of investment securities as well as 1,393 million yen inpurchase of property, plant and equipment and intangible assets.
Cash used in financing activities totaled 868 million yen (compared with 526 million yen in cash used infinancing activities in the previous fiscal year). Major items in cash flow from financing activities include 1,002
million yen in cash dividends paid.
As a result, consolidated cash and cash equivalents at the end of the fiscal year under review increased by
2,275 million yen from the end of the previous fiscal year to 12,575 million yen.
Changes in cash flow-related indicators
Fiscal year ended
March 31, 2017
Equity ratio (%)
Return on equity based on market
value (%)
Cash flow to interest-bearing debt
(years)Interest coverage ratio (times)

Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

64.7

67.5

69.2

66.3

34.8

40.2

42.0

51.7

0.4

6.6

-

2.5

105.6

6.5

-

82.4

Notes: Return on equity: Total equity/Total assets
Return on equity based on market value: Market valuation/Total assets
Cash flow to interest-bearing debt: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest expenses* All indicators are calculated based on consolidated figures.
* Market valuation is calculated by multiplying the number of shares issued at end of period (excluding treasury
stock) with the closing stock price of the period.
Cash flows from operating activities in the Consolidated Statements of Cash Flows are used for operating
cash flow. Interest-bearing debt includes all liabilities recorded on the Consolidated Balance Sheets on whichinterest is paid. Interest paid in the Consolidated Statements of Cash Flows is used for Interest expenses.

– 8 –(3) Basic Policy Concerning Profit Distribution and Dividends for the Current Term and Next Term
The Company identifies the return of profits to shareholders as an important management goal, and in principle,
pays dividends continuously by taking into account the business performance in the period. It is the Company’s
basic policy to strive to strengthen its management foundation and enhance corporate value to meet theshareholders’ expectations and make decisions on return of profits from a comprehensive perspective including
enhancement of internal reserves.
The Company expects to propose dividends of 20.00 yen per share at the 157th Ordinary General Shareholders’Meeting scheduled on June 25, 2020.
For the next fiscal year, the Company plans annual dividend of 30.00 yen per share (dividend payout ratio of
62.6%), consisting of interim and year-end dividends of 15.00 yen per share each, in accordance with the policy ofthe current Medium-Term Management Plan to raise the dividend payout ratio to 60% or higher.
(4) Risks Associated with Business, etc.
• Changes in the market environment
Reduction of public investment decline in construction investment in Japan lead to a significant fall in demand
for asphalt and concrete plants (hereinafter referred to as the “plants”), which potentially affects the Company’sbusiness performance.
• Changes in product prices
Changes in product prices occur due to various factors including short-term demand changes, shortage of
specific parts and raw materials, unstable economic situation, revision to import restrictions, revision to foreignexchange control law, and intensifying competition. If such situations occur in the mainstay markets where theCompany operates business, it would affect price fluctuations, which in turn affects the Company’s businessperformance.
• Fluctuation in foreign exchange rates
The Company exports plants and plant parts from Japan to multiple countries and has sales in currencies otherthan the Japanese yen. In addition, the stronger yen works to the disadvantage of the Company’s sales whencompeting for orders. Fluctuation in foreign exchange rate affects the Company’s operating results, financial
standings and competitiveness.
• Environmental restrictions regarding plants and other restrictions
Exhaust gas, fuel consumption, noise and safety regarding plants and production facilities are widely restricted.
These restrictions are subject to revisions and in many cases the restrictions get tightened. Costs for complying
with these restrictions potentially affect the Company’s business activities in a significant way.
• Protection of intellectual properties
Over many years, the Company has been owning a number of patents and trademarks regarding the products it
manufactures and has been acquiring their rights. These patents and trademarks are important for theCompany’s businesses and their importance remains the same in the future. If a situation arises where suchintellectual properties cannot be protected extensively or the Company’s intellectual property rights are infringed
illegally, the Company’s business activities may be affected.
• Investment
The Company makes investment in several countries. If such investment is affected by changes in the
management environment in the counterpart country, the Company’s business, financial standings andoperating results may be affected.
• Impact of disaster, war, terror attack, strike, etc.
The Company operates business outside Japan, and if a natural disaster, disease, war, terror attack, strike, etc.
occurs in such a place overseas, it could lead to delay or suspension of production, sales, offering of service
and collection of accounts receivable. If such a situation prolongs, it may affect the Company’s business,financial standing and operating results.

– 9 –

2.

Status of the Nikko Corporate GroupThe Nikko corporate group consists of the Company and nine subsidiaries. The principal business of Nikko Group is
manufacture and distribution of asphalt plants, concrete plants and environment- and conveyor machinery, and it is also
engaged in real estate leasing and sales of housing renovation, etc.
In the segment information by type of business, the asphalt plant business is classified as the Asphalt Plant-Related
Business, concrete plant business as the Concrete Plant-Related Business, the environment and conveyor business as
the Environment- and Conveyor-Related Business and the other business including temporary construction materials
and hand tools as the Other Business.
Category
Main products

Main companies

Asphalt PlantRelated Business

Asphalt plants
Recycling plants
Mixture silos
Electronic control devices, plant
management system

Nikko Co., Ltd.
Nikko Electronics Co., Ltd.
Nikko Machinery Co., Ltd.
Nikko (Shanghai) Construction Machinery Co., Ltd.
Nikko Asia (Thailand) Co., Ltd.

Concrete PlantRelated Business

Concrete plants
Compact concrete plants
Concrete pumps
Electronic control devices, plant
management system
Concrete manufacturing plant facilities, etc.

Nikko Co., Ltd.
Nikko Electronics Co., Ltd.
Nikko Machinery Co., Ltd.
Nikko (Shanghai) Construction Machinery Co., Ltd.

Environment- andConveyorRelated Business

Belt conveyors, conveyors for facilities,
beverage container recycling plants
Soil remediation plant, plastic recycling plant

Nikko Co., Ltd.

Other business

Pipe scaffoldings, steel gangplanks, pipe
supports
Temporary aluminum staircases
Shovels, spades
Small-sized concrete mixers, mortar mixers
Sluices, waterproof boards, crushers
Real estate leasing, construction machinery
product leasing
Sales of housing renovation

Nikko Co., Ltd.
Nikko Machinery Co., Ltd.
Tombo Industry Co., Ltd.
Nikko Sec Co., Ltd.
Nikko Kosan Co., Ltd.
Maekawa Kogyosho Co., Ltd.
Maekawa Shanghai Qiankun Machinery Co., Ltd.
Nikko Baumaschinen GmbH

– 10 –

The group organizational chart is shown in the following page.

– 11 –

3.

Basic Approach to the Selection of Accounting Standards
The Nikko Group plans to continue applying the Japanese accounting standards for the time being taking into
consideration availability of periodical comparison of its consolidated financial statements and availability of comparison
among other companies.
It plans to respond appropriately to the application of the International Financial Reporting Standards (IFRS) by taking
into consideration the situation in Japan and overseas.

– 12 –

4.

Consolidated Financial Statements and Notes to the Statements(1) Consolidated Balance Sheets(million yen)
As of March 31, 2019
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
Consumption taxes receivable
Other business
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Buildings and structures (net)
Machinery, equipment and vehicles (net)
Tools, furniture and fixtures (net)Land
Lease assets (net)Right-of-use assets (net)
Construction in progress
Total property, plant and equipment
Intangible assets
Other businessTotal 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– 13 –

As of March 31, 2020

10,347
10,731
1,628
1,190

12,622
9,902
1,709
935

3,903

4,473

933
209
453
(7)
29,390

1,237
560
(14)
31,426

3,216
609
361
2,216
102
6,507

3,495
817
353
2,472
2
68
152
7,362

418
418

431
431

5,976
11
6
576
1,234
(152)
7,652
14,57843,969

4,341
11
12
953
1,287
(150)
6,456
14,25045,677(million yen)
As of March 31, 2019
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– 14 –

As of March 31, 2020

2,270
938
2,391
1,532
421
630
412
52
35
2,095
10,781

2,430
1,176
3,427
1,548
627
538
415
65
54
2,260
12,545

186
98
135
2,010
342
2,773
13,554

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

9,197
7,808
12,049(576)
28,478

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

2,010

1,119

163

55

(238)

(235)

1,935

939

30,41443,96925
30,29345,677

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(million yen)
Fiscal year ended March 31,
2019 (from April 1, 2018 toMarch 31, 2019)

Fiscal year ended March 31,
2020 (from April 1, 2019 toMarch 31, 2020)

31,78023,485
8,295
6,868
1,427

35,151
25,512
9,639
7,585
2,053

2
157
7
75
243

2
139
31
63
236

40
3
2
7
30
8
93
1,576

46
22
36
24
18
147
2,142

409
409

468
23
53
545

8
44
53
1,933
651
(63)
587
1,345
1,345

119
19
76
32
247
2,440
969
(117)
852
1,588
1,588

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Insurance income
Other businessTotal non-operating income
Non-operating expenses
Interest expenses
Loss on sales of securities
Loss on disposal of noncurrent assets
Foreign exchange losses
Compensation for damage
Other businessTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of noncurrent assets
Insurance proceeds from disaster
Total extraordinary income
Extraordinary loss
100 anniversary program cost
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on disaster
Loss on valuation of investments in capital
Impairment loss
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to owners of parent– 15 –

(Consolidated Statements of Comprehensive Income)(million yen)
Fiscal year ended March 31,
2019 (from April 1, 2018 toMarch 31, 2019)

Fiscal year ended March 31,
2020 (from April 1, 2019 toMarch 31, 2020)

1,345

1,588

(638)

(891)

(125)
26
(737)
607

(108)
3
(996)
592

607

592

－

0

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Retirement benefit-related adjustment
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests– 16 –

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(million yen)
Shareholders' equity
Capital stock
Balance at beginningof term

9,197

Capital surplus

Retained earnings

7,802

11,201

Treasury stock(588)

Total shareholders’equity27,612

Changes during term
Cash dividends

(497)

(497)

Net income
attributable toowners of parent

1,345

1,345

Purchase oftreasury stock
Disposal oftreasury stock

6

(0)

(0)

13

19

Net changes of
items other thanshareholders'equityTotal changes of
items during theperiod

-

6

847

12

865

Balance at end of
term

9,197

7,808

12,049(576)

28,478Non-controllinginterests

Accumulated other comprehensive income

Balance at beginningof term

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Accumulated
retirement benefitrelated
adjustment

Total accumulated
othercomprehensive
income

2,648

289

(264)

2,673

Total net assets-

30,286

Changes during term
Cash dividends(497)

Net income
attributable toowners of parent

1,345

Purchase oftreasury stock(0)

Disposal oftreasury stock19

Net changes of
items other thanshareholders'equity

(638)

(125)

26

(737)

-

(737)

Total changes of
items during theperiod

(638)

(125)

26

(737)

-

128

Balance at end of
term

2,010

163

(238)

1,935

-

30,414– 17 –

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(million yen)
Shareholders' equity
Capital stock
Balance at beginningof term

9,197

Capital surplus

Retained earnings

7,808

12,049Treasury stock(576)

Total shareholders’equity28,478Changes during term
Cash dividends(1,005)(1,005)

Net income
attributable toowners of parent

1,588

1,588

Purchase oftreasury stock
Disposal oftreasury stock

109

(0)

(0)

156

266

Net changes of
items other thanshareholders'equityTotal changes of
items during theperiod

-

109

583

156

849

Balance at end of
term

9,197

7,918

12,632(420)

29,328Non-controllinginterests

Accumulated other comprehensive income

Balance at beginningof term

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Accumulated
retirement benefitrelated
adjustment

Total accumulated
othercomprehensive
income

2,010

163

(238)

1,935

Total net assets-

30,414

Changes during term
Cash dividends(1,005)

Net income
attributable toowners of parent

1,588

Purchase oftreasury stock(0)

Disposal oftreasury stock266

Net changes of
items other thanshareholders'equity

(891)

(108)

3

(996)

25

(971)

Total changes of
items during theperiod

(891)

(108)

3

(996)

25

(121)

Balance at end of
term

1,119

55

(235)

939

25

30,293– 18 –

(4) Consolidated Statements of Cash Flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit-related adjustment
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and valuation of investment securities
Loss on valuation of investments in capital
Loss (gain) on sales of property, plant and equipment
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Insurance proceeds from disaster
Other business
SubtotalInterest and dividends income received
Interest expenses paid
Proceeds from insurance income from disaster
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales and redemption of investment securities
Purchase of property, plant and equipment and intangible
assetsPayments of loans receivableCollection of loans receivable
Other business
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from stock issuance to non-controlling shareholders
Repayments of finance lease obligations
Cash dividends paid
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

– 19 –

Fiscal year ended
March 31, 2019(from April 1, 2018 toMarch 31, 2019)(million yen)
Fiscal year ended
March 31, 2020
(from April 1, 2019 toMarch 31, 2020)

1,933
508
–
7
16

2,440
611
32
5
82

14

10

(159)
40
(1)
(405)
44
–
95
(991)
(1,008)
–
73
168
160
(39)
–
(507)
(218)

(141)
46
15
(373)
–
(23)
686
(687)
1,317
(53)
491
4,460
141
(46)
53
(769)
3,839

(47)
47
(11)
834

(47)
47
(11)
772

(1,849)(1,393)(1)
0
5(1,021)

(8)
2
–
(639)

83
–
(112)
(0)
–
–
(496)
(526)
(43)
(1,810)12,11010,300

45
100
(36)
(0)
25
(0)
(1,002)
(868)
(55)
2,275
10,30012,575(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Changes in Accounting Policy)
The Company’s subsidiaries that adopt the International Financial Reporting Standards are applying IFRS 16 Leases(hereinafter referred to as “IFRS 16”) from the current fiscal year. As a result, a lessee, in principle, records all leases
as assets and liabilities on the balance sheet. In accordance with the transitional measure of the application of IFRS
16, the subsidiaries recognized the cumulative impact of the change in the accounting policy on the application startdate. The subsidiaries also transferred part of assets that had been included in investments and other assets to rightof-use assets. As a result, right-of-use assets of property and equipment increased 68 million yen, other in current
liabilities 5 million yen, and other in long-term liabilities 5 million yen while other in investments and other assets
decreased 57 million yen in the consolidated balance sheet for the current fiscal year. The impact of the change in theaccounting policy on income in the current fiscal year is negligible.
(Change in the method of presentation)
From the current fiscal year, the Company is independently recording accounts payable-factoring, which used to be
included in accounts payable-other of current liabilities, to improve clarity.
To reflect this change in the method of presentation, the Company reclassified the financial statements for the previous
accounting period.
As a result, the 3,022 million yen of accounts payable-other in current liabilities in the balance sheet for the previous
fiscal year was reclassified as the 2,391 million yen in accounts payable-factoring and the 630 million yen in accounts
payable-other.

– 20 –

(Segment Information)
1.

[Segment Information]
Overview of reportable segment

The Company’s reportable segments are components of the Nikko Group about which separate financial information isavailable. These segments are subject to periodic examinations to enable the Company’s Board of Directors to decide
how to allocate resources and assess performance.
The Company formulates comprehensive strategy for products and services in Japan and overseas and implements
business activities.
The Company, therefore, classifies its operations into three reportable segments of Asphalt Plant-Related Business,
Concrete Plant-Related Business and Environment- and Conveyor-Related Business.
The Asphalt Plant-Related Business produces asphalt mixing plants, recycling plants, etc. The Concrete Plant-Related
Business produces concrete batching plants, concrete pumps, etc. The Environment- and Conveyor-Related Businessproduces environmental and recycling plants, various types of conveyor systems, etc.
2. Calculation of net sales, income/loss, assets, liabilities, and other items by reportable segment
Accounting methods applied in the reportable business segments are roughly in accordance with the Significant Matters
Serving as a Basis for the Presentation of Consolidated Financial Statements.
Reportable segment income is based on operating income.
Intersegment sales or transfers are based on market price.
3.

Net sales, income/loss, assets, liabilities, and other items by reportable segment
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(million yen)
Reportable segment
Other
business(note)

Asphalt
PlantRelated
Business

Concrete
PlantRelated
Business

Environmentand ConveyorRelated
Business

Sales to outside customers
Inter-segment sales andtransfers

16,434

7,893

2,775

27,103

4,677

31,780

-

-

41

41

191

233

Total

16,434

7,893

2,816

27,144

4,869

32,014

Total

Total

Net sales

Segment income

963

666

417

2,047

502

2,550

Segment assets

13,858

5,440

1,446

20,745

7,593

28,339

116

72

9

198

136

334

219

155

1

376

466

843

Other items
Depreciation and amortization
Increase (decrease) in tangible
and intangible assets

Note: Other is a business segment that is not included in reportable segments and includes temporary
construction materials, hand tool business and floodgate business.

– 21 –

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(million yen)
Reportable segment
Other
business(note)

Asphalt
PlantRelated
Business

Concrete
PlantRelated
Business

Environmentand ConveyorRelated
Business

Sales to outside customers
Inter-segment sales andtransfers

17,518

9,158

2,634

29,311

5,840

35,151

-

-

25

25

106

131

Total

17,518

9,158

2,660

29,336

5,946

35,282

Total

Total

Net sales

Segment income

1,118

761

562

2,442

1,020

3,462

Segment assets

14,121

5,281

1,454

20,857

8,956

29,814

155

83

8

247

164

411

336

227

0

563

686

1,250

Other items
Depreciation andamortization
Increase (decrease) intangible and intangible
assetsNote: Other is a business segment that is not included in reportable segments and includes temporary
construction materials, hand tool business and floodgate business.

– 22 –

4.

Difference between reportable segment total and consolidated financial statement amounts and main factors in the
difference (related to difference adjustment)(million yen)
Fiscal year ended March 31,
2019

Net sales

Fiscal year ended March 31,
2020

Reportable segment total

27,14429,336

Net sales for Other

4,869

5,946

Elimination of intersegment transaction

(233)

(131)

31,78035,151

Net sales in consolidated financial
statements(million yen)
Fiscal year ended March 31,
2019

Earnings
Reportable segment total

Fiscal year ended March 31,
2020

2,047

2,442

502

1,020

–

–

Corporate expenses (note)(1,122)(1,409)Operating income in consolidated financial
statements

1,427

2,053

Earnings for Other
Elimination of intersegment transaction

Note: Corporate expenses are expenses of planning and administrative divisions of the Company that are not
attributable to reportable segments.
(million yen)
Fiscal year ended March 31,
2019

AssetsFiscal year ended March 31,
2020

Reportable segment total

20,74520,857

Assets in Other

7,593

8,956

Corporate assets (note)

15,63015,862

Total assets in consolidated financial
statements

43,96945,677

Note: Assets in Other include surplus funds, funds for long-term investment and assets associated withadministrative divisions and other assets of the Company that are not attributable to reportable segments.

Reportable segment
total

Other business

Adjustment (note)(million yen)Amount inconsolidated financial
statements

Fiscal
year
ended
March
31, 2019

Fiscal
year
ended
March
31, 2020

Fiscal
year
ended
March
31, 2019

Fiscal
year
ended
March
31, 2020

Fiscal
year
ended
March
31, 2019

Fiscal
year
ended
March
31, 2020

Fiscal
year
ended
March
31, 2019

Fiscal
year
ended
March
31, 2020

Depreciation andamortization

198

247

136

164

174

199

508

611

Increase (decrease) intangible and intangible
assets

376

563

466

686

1,148

121

1,991

1,372

Other items

Note: The adjustments for increase in tangible fixed assets and intangible fixed assets are capital investment
related to the planning and administrative divisions of the Company.

– 23 –

[Related Information]
Fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)1.

Information by product and service
The categories of products and services are omitted as they are the same as the reportable segments.

2.

Information by region(1)

Net sales
Japan

China
27,941

Other
3,357

481

(million yen)Total
31,780(Note) Net sales are categorized by country or region based on the locations of the customers.
(2)

Property and equipment

The amount of property and equipment located in Japan is omitted as it accounted for more than 90% of
the property and equipment on the balance sheet.
Information by major customer

3.

Sales to outside customers are omitted because net sales to no customer account for 10% or more of
net sales on the consolidated statement of income.
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Information by product and service
The categories of products and services are omitted as they are the same as the reportable segments.

1.

Information by region

2.
(1)

Net sales
Japan

China
30,429

Other
3,637

1,083

(million yen)Total
35,151(Note) Net sales are categorized by country or region based on the locations of the customers.
(2)

Property and equipment
The amount of property and equipment located in Japan is omitted as it accounted for more than
90% of the property and equipment on the balance sheet.

3.

Information by major customer
Sales to outside customers are omitted because net sales to no customer account for 10% or more of
net sales on the consolidated statement of income.

– 24 –

(Per Share Information)
Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020
(from April 1, 2018 to March 31,
2019)(from April 1, 2019 to March 31,
2020)

Net assets per share

793.76 yen

780.68 yen

Net income per share

35.12 yen

41.17 yen

Note: The calculation base for profit for the period per share is as follows:
Fiscal year ended March 31, 2019(from April 1, 2018 to March 31,
2019)

Fiscal year ended March 31, 2020
(from April 1, 2019 to March 31,
2020)

Net income per share
Net income attributable to owners ofparent (million yen)

1,345

1,588

–

–

1,345

1,588

38,308,210

38,589,549

Amount not attributable to common
stockholders (million yen)
Net income attributable to common stockof owners of parent (million yen)
Average number of shares outstanding
during the term (shares)

The Company carried out a one-to-five split of its common stock effective on October 1, 2019. Net assets per share andnet income per share are calculated based on the assumption that the stock split was executed at the beginning of theprevious fiscal year.
Diluted net income per share is not described, as dilutive shares do not exist.
(Significant Subsequent Events)
Not applicable– 25 –5.

Other(1) Changes in Officers(i)Changes in Representative Directors
Not applicable(ii)

Changes in Other Officers• New executive officers
Kazuhiro Yamada, Executive Officer, Manufacturing Division Head Office Plant Manager, and General
Manager of Manufacturing Technology Office and Quality Assurance Office[A1](iii) Expected date of changes
June 25, 2020
(2) Other
Not applicable– 26 –