Consolidated Quarterly Financial Results
for the Nine Months Ended December 31, 2022
[Japanese GAAP]
February 10, 2023
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: https://www.nipponhume.co.jp
Representative: Minoru Okawauchi, President and Representative Director
Contact: Hirokazu Suzuki, Director and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of filing quarterly securities report: February 10, 2023
Scheduled date of commencing dividend payments: ―Preparation of supplementary briefing material on quarterly financial results: No
Holding of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2022
(April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toTurnoverOperating income
Ordinary income
owners of parent
company
Million yen%

Million yen%

Million yen%

Million yen

Nine months ended
23,0086.6
741 (24.8)
1,669
(8.9)
1,359
December 31, 2022
Nine months ended
21,590(4.9)
986 (23.6)
1,833 (13.4)
1,514
December 31, 2021
(Note) Comprehensive income: Nine months ended December 31, 2022: ¥1,273 million [2.9%]
Nine months ended December 31, 2021: ¥1,237 million [-47.2%]

Nine months ended
December 31, 2022
Nine months ended
December 31, 2021

Earnings per share

Diluted earnings per
share

Yen

Yen

56.33

―

62.28

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of December 31,
53,47337,5942022
As of March 31,
52,12136,9352022(Reference) Equity: As of December 31, 2022: ¥37,291 million
As of March 31, 2022: ¥36,626 million

Equity ratio%(10.3)(4.5)

Net assets per share
%

Yen

69.7

1,550.28

70.3

1,514.78

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Fiscal year ended March 31, 2022

―

―

―

Fiscal year ending March 31, 2023

―

―

―

Yen

Fiscal year ending March 31, 2023
(Forecast)

Total
Yen

20.00

20.00

21.00

21.00

(Note) Revision to the dividend forecast announced most recently: No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2023
(April 1, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable
Earnings
TurnoverOperating income Ordinary income
to owners ofper share
parent company%

Million yen%

Yen

32,000
8.5
1,600
10.3
2,500 (1.1)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen%

Million yen%

Million yen

1,800(15.7)

74.44* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No
Newly included: ― (Company name)
Excluded: ― (Company name)(2) Application of accounting procedures specific to preparation of consolidated quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards, etc.: No
2) Changes in accounting policies other than 1) above: Yes
3) Changes in accounting estimates: Yes
4) Retrospective restatement: No(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022: 29,347,500 shares
As of March 31, 2022: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of December 31, 2022: 5,292,946 shares
As of March 31, 2022: 5,168,111 shares
3) Average number of shares during the period
Nine months ended December 31, 2022: 24,129,471 shares
Nine months ended December 31, 2021: 24,317,182 shares* These quarterly financial results are not subject to quarterly review procedures by certified public accountants or
auditing corporations.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecast and other forward-looking statements contained in these materials are based on
information available to the Company and on certain assumptions deemed to be reasonable as of the date of publicationof this document. They are not intended as a commitment by the Company that these results will be achieved. Actual
results may differ considerably as a result of numerous factors. For the assumptions used in the financial results
forecast and precautionary notes on its use, please refer to “1. Qualitative Information on Quarterly Financial Results
for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking
Information” on page 3 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ....................... 2(1) Explanation of Operating Results .................................................................................................... 2(2) Explanation of Financial Position ................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 3
2. Consolidated Quarterly Financial Statements and Important Notes...................................................... 4(1) Consolidated Quarterly Balance Sheets .......................................................................................... 4(2) Consolidated Quarterly Statements of Income and Comprehensive Income .................................. 6(3) Notes to the Consolidated Quarterly Financial Statements ............................................................. 8(Notes on going concern assumption) ............................................................................................. 8(Notes in the case of significant changes in shareholders’ equity) .................................................. 8(Changes in accounting policies that are inseparable from changes in accounting estimates, andchanges in accounting estimates) ...................................................................................................... 8(Segment information, etc.) ............................................................................................................ 81

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the nine months ended December 31, 2022, the Japanese economy showed signs of recovery on theback of progress in balancing quarantine policies against coronavirus infections with economic activities;
nonetheless, the situation remained challenging amid sharp currency fluctuations, rising material and energy
prices, and consumer price hikes.
In the market environment affecting the Group, despite signs of a pickup in private capital investment, public
works investment remained slightly sluggish in anticipation of increased defense costs and other expenses in thenext fiscal year and beyond. In addition, conditions remained harsh overall due to factors such as intensecompetition over orders and the rising material and energy prices.
In the foundations business, nationwide demand for concrete piles increased year on year, while in thesewerage-related business, demand for Hume pipes and other products fell below the levels seen in the same
period of the previous fiscal year.
Under these conditions, in the nine months ended December 31, 2022, turnover amounted to ¥23,008 million(up 6.6% year on year), operating income was ¥741 million (down 24.8% year on year), ordinary income was¥1,669 million (down 8.9% year on year), and profit attributable to owners of parent company was ¥1,359 million(down 10.3% year on year).
The main initiatives for strengthening technological development under the medium-term management plan,
the 21-23 Plan, for the nine months ended December 31, 2022, included “improvement of pipe joints,”“upgrading of pipe rehabilitation methods,” and “expansion of the scope of work for the seismic retrofitting ofexisting sewer holes” to add value to existing products and construction methods in the sewerage business.
In the road construction business, we jointly developed the “compartment fence and center block,” a precast
product that addresses the need to prevent serious accidents on temporary two-lane expressways, and participatedin a pilot installation. The installation will be rolled out across the country in the next fiscal year.
In the foundations business, we upgraded to a new version of pile design software to improve productivity indesign work, and implemented additional functions of the “Pile-ViMSys” ICT construction management system.
The initiatives toward a decarbonized society included the promotion of research on CO2 fixation for carbonneutral concrete products and basic research on the application of special concrete to wind power generation
facilities.
In addition, the BIM/CIM Promotion Office was launched to improve productivity of precast products using
3D design models. At Highway Techno Fair 2022, an exhibition of expressway construction and management
technologies, we showcased our roadway products that include the EMC wall height balustrade, and the quick
wall height balustrade, as well as anti-floating methods to prevent manholes from floating due to liquefaction
during earthquakes.
The market environment affecting the Company is expected to remain harsh, but aging of the social
infrastructure is urgent, and the Group will steadily implement the 21-23 Plan, the Group’s medium-term
management plan concluding in the fiscal year ending March 31, 2024. The Group will proceed with further
business restructuring, as well as capital investment and the research and development of products andconstruction techniques that will drive growth, with the aim of further stabilizing the management foundation
and achieving sustainable growth.
An overview of the business segments is provided below.
1) Foundations business
Turnover totaled ¥14,450 million (up 14.7% year on year) and operating income was ¥296 million (up90.5%). Shipments of concrete piles progressed well due to factors such as private-sector factory
construction, and resulted in increases both in turnover and income.
The Group will work to raise profitability by optimizing selling prices and improving profit ratios
through strict and precise profit and loss management, as well as strengthening sales by expanding ourbusiness domain through nodular piles.
2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

2) Sewerage-related business
Turnover totaled ¥7,437 million (down 5.5% year on year) and operating income was ¥1,014 million (down
24.4%). On the other hand, the Type 1, Type 2, Type 5, and Type 6 Steel Composite Pipes began to contributeto shipping results, as high value-added products geared toward disaster prevention, disaster mitigation, andnational resilience measures. In addition, shipments of EMC wall height balustrade, which allows for rapid
construction and measures against aging of expressways and other roads, are progressing smoothly.
The Group will continue to work to improve earning capacity focusing on timely product development thatmeets market needs.
3) Solar Power Generation and Real Estate business
Turnover amounted to ¥1,084 million (up 0.4% year on year) and operating income was ¥607 million(up 1.2%). Real estate rental revenue was solid, and in the solar power generation area, both electric power
generation and power selling progressed smoothly for NH Tohoku Solar Power Generation and NH
Okayama Solar Power Generation.
4) Others
In Others, turnover totaled ¥36 million (down 17.1% year on year) and operating income was ¥26
million (down 23.8%).

(2) Explanation of Financial Position
Total assets as of December 31, 2022, increased ¥1,351 million from the end of the previous consolidated
fiscal year, to ¥53,473 million. This was mainly because, under current assets, while cash and deposits decreased¥820 million, notes and accounts receivable - trade and contract assets increased ¥796 million, merchandise andfinished goods increased ¥748 million, and raw materials and supplies increased ¥238 million; also, under noncurrent assets, investment securities increased ¥263 million.
In addition, under liabilities, total liabilities increased ¥692 million from the end of the previous consolidated
fiscal year, to ¥15,878 million. This was mainly because, under current liabilities, income taxes payable decreased¥423 million and provision for bonuses decreased ¥185 million, while notes and accounts payable - trade
increased ¥1,383 million.
Under net assets, total net assets increased ¥658 million from the end of the previous consolidated fiscal year,to ¥37,594 million. This was mainly because, under retained earnings, while profit attributable to owners ofparent company increased ¥1,359 million, there was a decrease of ¥499 million for cash dividends paid, andvaluation difference on available-for-sale securities decreased ¥76 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the results forecasts pertaining to the fiscal year ending March 31, 2023, there has been no change
to the full-year results forecast published in the “Consolidated Financial Results for the Fiscal Year Ended March
31, 2022 [Japanese GAAP]” dated May 13, 2022.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

2. Consolidated Quarterly Financial Statements and Important Notes(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract
assetsMerchandise and finished goods
Raw materials and supplies
Other
Provision for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Provision for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Provision for share-based remuneration for directors
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

4

As of December 31, 2022

13,065,056

12,245,041

10,284,336

11,080,768

2,672,504
639,154
276,466(11,872)
26,925,645

3,421,296
877,359
350,023(13,095)
27,961,394

3,885,336
3,607,220
1,786,337
9,278,894
176,286

3,707,456
3,611,512
2,004,449
9,323,417
195,285

15,462,325
310,942(32,250)
15,741,017
25,196,198
52,121,844

15,726,164
299,013(32,250)
15,992,927
25,511,631
53,473,025

8,517,494
982,028
503,811
185,665
7,505
1,293,296
11,489,801

9,900,811
1,052,617
80,036―
5
1,066,663
12,100,135

25,975
14,9072,610,601
1,045,042
3,696,526
15,186,328

33,64814,9072,666,164
1,063,939
3,778,659
15,878,794

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

(Thousand yen)
As of March 31, 2022
Net assets
Shareholders’ equity
Share capital
Share premium
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of December 31, 2022

5,251,400
4,773,375
27,871,603(2,345,135)
35,551,243

5,251,400
4,773,375
28,710,332(2,426,771)
36,308,337

881,657
186,904
6,749
1,075,312
308,960
36,935,515
52,121,844

804,689
142,964
35,265982,919
302,973
37,594,230
53,473,025

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 2021
TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of associates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Total extraordinary losses
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent company

6

For the nine months ended
December 31, 2022

21,590,833
17,580,949
4,009,883
3,023,187
986,695

23,008,475
19,284,535
3,723,940
2,982,271
741,668

268
194,042570,031
23,384
84,174
871,901

333
162,914619,12190,58384,882
957,834

9,370
15,477
24,847
1,833,749

11,932
17,781
29,714
1,669,788

27,527108,066
135,593165
36,03136,197――
1,969,342
425,049
33,077458,126
1,511,216(3,375)
1,514,591

5
5
1,705,980
286,09054,361
340,451
1,365,529
6,409
1,359,119

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

Consolidated Quarterly Statements of Comprehensive Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 2021
Profit after income taxes
Other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Share of other comprehensive income of associates
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
company
Comprehensive income (loss) attributable to noncontrolling interests

7

For the nine months ended
December 31, 2022

1,511,216

1,365,529(244,930)(22,007)
17,433(24,257)(273,762)
1,237,453(74,790)(57,172)
27,666
11,905(92,392)
1,273,136

1,240,829

1,266,726(3,375)

6,409

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

(3) Notes to the Consolidated Quarterly Financial Statements(Notes on going concern assumption)
No relevant items.
(Notes in the case of significant changes in shareholders’ equity)
No relevant items.
(Changes in accounting policies that are inseparable from changes in accounting estimates, and changes inaccounting estimates)(Changes in the depreciation method and useful life of property, plant and equipment)
In general, the Company previously applied the declining-balance method of depreciation for property, plantand equipment. From the start of the three months ended June 30, 2022, the Company has changed the method
applied to the straight-line method.
The Company has made this change because it believes that using the straight-line method to allocate
depreciation equally across the useful life of assets more appropriately reflects the actual nature of usage, in viewof the expectation of more stable operation throughout the period of use than was previously the case, due toimproved functionality facilitated by stronger capital investment under the medium-term management plan.
Moreover, it has become clear that some assets can be used for longer than the useful life estimated previously,
due to stronger capital investment under the medium-term management plan, and the useful life for these assets has
therefore been changed to correspond with actual usage.
As a result, for the nine months ended December 31, 2022, operating income, ordinary income, and profit before
income taxes and minority interests were each ¥107 million higher than when calculated using the previous method.
(Segment information, etc.)
I. For the nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)

Adjustments(Note 2)

Amountrecorded ontheConsolidated
QuarterlyStatements ofIncome(Note 3)

21,590,833―

21,590,833―

32,651(32,651)―

43,52134,80821,623,485
2,132,856(32,651)(1,146,160)

21,590,833
986,695

Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate

Total

Others(Note 1)

Total

12,594,300

7,873,709

1,079,302

21,547,312

43,521

4,220―

28,43032,651

12,598,521
155,508

7,873,709
1,342,268

1,107,733
600,270

21,579,963
2,098,047(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(1,146,160) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportable segments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.

8

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2022

II. For the nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)

Adjustments(Note 2)

Amountrecorded ontheConsolidated
QuarterlyStatements ofIncome(Note 3)23,008,475―

23,008,475―

34,170(34,170)―

36,08526,51723,042,646
1,944,878(34,170)(1,203,209)

23,008,475
741,668

Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate

Total

Others(Note 1)

Total

14,450,742

7,437,645

1,084,000

22,972,389

36,085

5,137―

29,03334,17014,455,880
296,2937,437,645
1,014,557

1,113,034
607,509

23,006,560
1,918,360(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(1,203,209) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportable segments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.

9