Consolidated Financial Results for the Nine Months of Fiscal Year Ending March 31, 2016
<under Japanese GAAP>
February 9, 2016
Company name : NIKKO COMPANY
ID number: 5343 Stock listing : Nagoya Stock Exchange Second Section
URL: http://www.nikko-company.co.jp/
Representative : Mitsuru Mitani, Chairman and CEO
Contact: Kazuya Nunokawa, Managing Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report: February 12, 2016
Scheduled date to begin dividend payments: Preparation of supplementary materials for quarterly financial results : None
Holding of quarterly financial results meeting : None
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2015 (April 1, 2015 - December 31, 2015)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year)
Net sales

Operating income％Millions of yen
Nine months ended
December 31, 2015

10,051％Millions of yen(12.5)

(464)

(432)

-

(599)

-

(51)

-(190)-

Millions of yen-

Nine months ended
11,488(6.3)(168)
December 31, 2014
Note: Comprehensive income (Millions of yen):December 31, 2015: (567) ( -%)Net income pershare％

Profit (loss) attributableto owners of parent％
Millions of yen

Ordinary income

December 31, 2014: (54) ( -%)Diluted net income
per share
Yen

Yen

Nine months ended
December 31, 2015(25.69)-Nine months ended
December 31, 2014(9.39)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of December 31, 2015

9,556617

6.5

26.47

As of March 31, 2015

10,395

1,184

11.4

50.80

Reference: Shareholders' equity (Millions of yen):

December 31, 2015: 617

March 31, 2015: 1,184

2. Dividends

Fiscal Year ended March 31, 2015-

Dividend per share
3Q-end
Yen
Yen
0.00
-

Fiscal Year ending March 31, 2016

-

0.00

1Q-end2Q-endYen

Year-end

Annual
Yen

Yen

0.00

0.00

0.00

0.00

-

Fiscal Year ending March 31, 2016
(forecast)
Notes: Revision of dividend forecast during the period: None

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2016 (April 1, 2015 - March 31, 2016)(Percentage figures represent changes from the same period of the previous year.)Net sales

Full year

Operating income

Profit (loss) attributableto owners of parent% Millions of yen%

Ordinary income

Millions of yen%

Millions of yen%

13,650(12.5)(505)-

Millions of yen(460)

Notes: Revision of projected consolidated performance during the period

1:None-(660)-

Net income
per shareYen(28.30)NIKKO COMPANY

4. Notes(1) Changes in significant subsidiaries (changes in specified subsidiaries accompanying changes in the scope of consolidation) 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: None

Yes(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
December 31, 2015 :24,172,000 shares
March 31, 2015:24,172,000 shares
2) Number of treasury stock at the end of the period
December 31, 2015 :853,052 shares
March 31, 2015:850,499 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Nine months ended December 31, 2015 : 23,320,401 shares Nine months ended December 31, 2014 : 20,279,765 shares*Information regarding the implementation of quarterly review procedures
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments andExchange Law. At the time of disclosure, we have not completed the review process for these consolidated statements.

*Appropriate use of business forecasts, other special items
Forecasts regarding future results in these materials are based on information available to the Company at the time the materials werecreated. Actual results may differ significantly from these forecasts for a number of reasons.

2

NIKKO COMPANY
Quarterly Consolidated Financial Statements(Millions of yen)

(1) Consolidated Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in processCosts on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, 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 equipmentIntangible assets
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Claims provable in bankruptcy, claims provable inrehabilitation and other
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total 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
OtherTotal 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

3

As of March 31, 2015

As of December 31, 2015

1,285
2,469
1,407
582
224
259
1119(11)
6,336

700
1,996
1,415
635
400
283
0
141(8)
5,566

6,729(4,660)2,068
4,660(4,433)226
1,190(1,129)
61
1,145
462
(318)
144
62
3,708

6,764
(4,786)
1,977
4,775(4,493)282
1,231(1,152)78
1,145
251(163)
88
109
3,681

482
87

3
104
107

139

86

494

493

―
123(494)
263
4,058
10,3950114(494)
201
3,990
9,556

2,729
1,765
36979
4951
276
1,184
6,504

2,478
1,940
345
44
37
24
259
1,599
6,730

851
77
8
44
1,581
142
2,706
9,210

648
51
8
46
1,320
133
2,209
8,939

3,470
1,584
(3,224)
(336)
1,494

3,470
1,584
(3,823)
(336)
894

1
(115)
(195)
(309)
1,184
10,395

1
(115)
(162)
(277)
617
9,556

NIKKO COMPANY(2) Consolidated Quarterly Statements of Income
and Consolidated Quarterly Statements of Comprehensive Income

Consolidated Quarterly Statements of Income(Millions of yen)
Nine months ended
December 31, 2014

Nine months endedDecember 31, 2015

11,488
8,128
3,359
3,528(168)

10,051
7,247
2,804
3,269(464)

029
140
170

137
4180

28
2453(51)

272047(432)

27―
3646―
―
1―
119―
123―
143(149)34
741(190)
―
(190)

―
2―
133
136(566)31
032(599)―(599)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sales of noncurrent assets
Gain on liquidation of subsidiaries and affiliates
Gain on sales of investment securities
Reversal of provision for ｌoss on lead trouble measures
Total extraordinary Income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on valuation of investment securities
Loss on sales of investment securities
Business structure improvement expenses
Total extraordinary losses
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Consolidated Quarterly Statements of Comprehensive Income(Millions of yen)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theComprehensive income attributable to minority interests

4

Nine months ended
December 31, 2014

Nine months endedDecember 31, 2015

(190)

(599)

87
048136(54)(0)
03232(567)(54)―(567)―NIKKO COMPANY[Consolidated Segment Information]
Nine months ended December 31, 2014 (April 1, 2014 - December 31, 2014)
Housing &Environmental
Equipment
Net sales(1)Sales to Outside
Customers(2)Intersegment sales
or Transfers
TotalSegment profit (loss)(Operating income (loss))

Tabletop

Functional
Ceramics
Product

7,155

2,512

1,820

---

7,155

2,512

1,820

90

57180

Other(Note 1)

Segment
total-(Millions of yen, rounded down)Amounts shownAdjustment on consolidated(Note 2)statements ofincome

11,488-

11,488----

11,488-

11,488-

328

(497)

(168)

Notes: 1. The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Segment income adjustment of 497 million yen consists of expenses related to departments that do not belong to thereportable segments.

Nine months ended December 31, 2015 (April 1, 2015 - December 31, 2015)
Housing &Environmental
Equipment

Functional
Ceramics
ProductTabletop(Millions of yen, rounded down)Amounts shown
Adjustment on consolidated
statements of(Note 2)
incomeSegment
total

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

6,437

1,767

1,845

10,051-

10,051

-----

-

6,437

1,767

1,845

10,051-

10,05167(266)230

31(495)(464)

Notes: 1. The “Other” is not business segment.
2. Segment income adjustment of 495 million yen consists of expenses related to departments that do not belong to thereportable segments.

5