Consolidated Financial Results for the Six Months of Fiscal Year Ending March 31, 2020
<under Japanese GAAP>
November 8, 2019
Company name : NIKKO COMPANY
ID number: 5343 Stock listing : Nagoya Stock Exchange Second Section
URL: https://www.nikko-company.co.jp/
Representative : Akiko Mitani, Chief Executive Officer
Contact: Kazuya Nunokawa, Chief Financial Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report: November 8, 2019
Scheduled date to begin dividend payments: Preparation of supplementary materials for financial results : NoneHolding of financial results meeting: None
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2019 (April 1, 2019 - September 30, 2019)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income

Profit (loss) attributableto owners of parent

Ordinary income％％％ Millions of yen
Millions of yen
Millions of yen
Millions of yen
Six months ended
6,402
(4.8)
(41)
(32)
(25)
September 30, 2019
Six months ended
6,722
4.1(37)1(88.6)(16)
September 30, 2018
Note: Comprehensive income (Millions of yen) :September 30, 2019 : (17)(-%) September 30, 2018 : (7) (-%)
Net income
per share
Yen-

Diluted net income
per share
Yen

Six months ended
September 30, 2019(1.10)-

Six months ended
September 30, 2018(0.70)-(2) Consolidated financial position
Total assets％

Net assets

Equity ratio

Millions of yen
Millions of yen
As of September 30,
9,134
1,261
2019
Year ended Mar.
9,462
1,278
31, 2019
Reference: Shareholders' equity (Millions of yen) : September 30, 2019: 1,261

Net assets per share%

Yen

13.8

54.11

13.5

54.86

Mar. 31, 2019: 1,278

2. Dividends(Record date)

Dividend per share
1Q-end2Q-endYen

Year ended Mar.
31, 2019
Year ending Mar.
31, 2020
Year ending Mar.
31, 2020(forecast)

3Q-end
Yen

-

0.00

-0.00

Year-end
Yen

1

Annual
Yen

Yen

-

0.00

0.00

-

0.00

0.00

NIKKO COMPANY

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 - March 31, 2020)
The NIKKO Group will no longer disclose its projected consolidated results for periods starting from that ending in March 2019. Detailsof the decision are described in “3. Projected Consolidated Results for FY2019” in the “Consolidated Financial Results for the Fiscal
Year Ended March 31, 2019” disclosed on May 9, 2019.
※Notes(1) Changes in major subsidiaries during the period : None
(2) Application of special accounting methods for quarterly consolidated financial statements : None
(3) Changes in accounting policies, changes in accounting estimates, or restatement
1) Changes in accounting policies due to changes in consolidated accounting methods :2) Changes other than 1) above: None
3) Changes in accounting estimates : None
4) Restatement: NoneNone(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
September 30, 2019 :24,172,000 sharesMar. 31, 2019 :24,172,000 shares
2) Number of treasury stock at the end of the period
September 30, 2019 :
864,436 sharesMar. 31, 2019 :
864,232 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Six months ended September 30, 2019 : 23,307,693 shares Six months ended September 30, 2018 : 23,307,851 shares* Quarterly financial statements are not subject to a quarterly review by certified public accountants or an auditing company.

[Consolidated Segment Information]

2

NIKKO COMPANY

Consolidated quarterly Financial Statements(1) Consolidated Balance Sheet

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netMachinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assetsTotal noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax ｌiabilities
Provision for directors' retirement benefits
Net defined benefit liability
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-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

3FY03/2019(As of Mar.31,2019)(Millions of yen)
FY03/2020(As of Sep 30,2019)

1,406
1,839
1,145
627
466
270
85(2)
5,838

907
1,776
1,205
832
491
312
99(2)
5,621

6,862
(5,240)
1,621
4,515(4,110)404
1,182(1,109)
72
1,121
125
(12)
112
25
3,358
57

6,893
(5,320)
1,573
4,542(4,165)377
1,187(1,122)
64
1,121
125
(25)
99
25
3,261
49

110
99
(1)
207
3,623
9,462

107
96
(1)
202
3,513
9,134

2,498
2,350
114
26
51
170
130
1,219
6,561

2,551
2,350
64
25
39
128
122
1,033
6,315

76
86
5
44
1,282
126
1,622
8,183

56
73
4
41
1,255
125
1,558
7,873

3,470
1,584
(3,312)
(338)
1,404

3,470
1,584
(3,338)
(338)
1,378

0(105)
(20)
(125)
1,278
9,4620(105)
(11)
(117)
1,261
9,134

NIKKO COMPANY(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive income
Consolidated quarterly statements of income
FY03/2019(Apr.1, 2018-Sep 30,2018)(Millions of yen)
FY03/2020(Apr.1, 2019-Sep 30,2019)

6,722
4,801
1,920
1,957(37)

6,402
4,553
1,849
1,891(41)

01127
22
62

0
18―
1635

12
6―
423
1

10
5
1
826(32)

―――
1
17(0)
17(16)(16)

31417(15)10(0)
10(25)(25)

FY03/2019(Apr.1, 2018-Sep 30,2018)(Millions of yen)
FY03/2020(Apr.1, 2019-Sep 30,2019)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Gain on sales of wastes
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Total extraordinary Income
Loss before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to owners of parent

Consolidated quarterly statements of comprehensive income

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

4(16)

(25)

0(1)
9―
8(7)

(0)
09(0)
8(17)

(7)
―

(17)
―

NIKKO COMPANY(3) Consolidated Statements of Cash FlowsNet cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)Share of profit of entities accounted for using equity method
Loss (gain) on sales of property, plant and equipment
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paidNet cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Proceeds from sales of investment securities
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Repayment of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period5(Millions of yen)
FY03/2019(Apr.1, 2018-Sep.30,2018)(Millions of yen)
FY03/2020(Apr.1, 2019-Sep.30,2019)

1185
(0)
7―
38(0)
12(12)
―――
390

(15)
171
0(42)
(8)
(17)
(0)
10
4
1(3)
(14)
60

―

(0)

(20)
(304)
87
384
0(12)
(46)
327

(331)
52(146)
(280)
0(10)
(23)
(313)

(1)1(219)
――(2)
(221)

(0)
―(124)
6
16(0)
(101)

(89)
(9)
(0)
(99)
17
1,042
1,049

(69)
(13)
(0)
(83)
(0)
(499)
1,349
850

NIKKO COMPANY

Six Months ended September 30, 2018 (April 1, 2018 – September 30, 2018)
Housing & Functional
Environmental Ceramics
Equipment
Product

Tabletop

Other Segment(Note 1)
total

(Millions of yen, rounded down)Amounts on the
consolidated
Adjustment
financial(Note 2)statements(Note 3)

Net sales
Sales to Outside Customers
Intersegment sales or Transfers
TotalSegment profit (loss)(Operating income (loss))

4,110

1,436

1,153

22

6,722-

6,722-

--

77(7)

-

4,110

1,436

1,153

29

6,729

(7)

6,722

113

220

(79)

(2)

252(289)(37)

Note: 1. The category "Other" is warehouse business which is a business segment not included in the reportable segments.
Note: 2. Segment income adjustment of 289 million yen consists of expenses related to departments that do not belong to
the reportable segments.
Note: 3. Segment profits and losses are adjusted with Operating loss on the consolidated quarterly statements of income.
Six Months ended September 30, 2019 (April 1, 2019 – September 30, 2019)
Housing & Functional
Environmental Ceramics
Equipment
ProductTabletop

Other Segment(Note 1)
total

(Millions of yen, rounded down)Amounts on the
consolidated
Adjustment
financial(Note 2)statements(Note 3)

Net sales
Sales to Outside Customers
Intersegment sales or Transfers
TotalSegment profit (loss)(Operating income (loss))

4,336

1,195

857

13

6,402

-

6,402

-

--

44(4)

-

4,336

1,195

857

17

6,407

(4)

6,402

227

100(81)(0)247(288)(41)Note: 1. The category "Other" is warehouse business which is a business segment not included in the reportable segments.
This is to inform that our foreign-based consolidated subsidiary company, NIKKO CERAMICS, INC., quitted thewarehousing business on July 1, 2019.
Note: 2. Segment income adjustment of 288 million yen consists of expenses related to departments that do not belong tothe reportable segments.
Note: 3. Segment profits and losses are adjusted with Operating loss on the consolidated quarterly statements of income.

6