Consolidated Quarterly Financial Results
for the Six Months Ended September 30, 2019
[Japanese GAAP]
November 13, 2019
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: http://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: November 13, 2019
Scheduled date of commencing dividend payments: ―Preparation of supplementary briefing material on quarterly financial results: No
Holding of quarterly financial results briefing session: Yes(for analysts, and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2019
(April 1, 2019 to September 30, 2019)(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

Six months ended
17,115(13.6)
930
32.6
1,658
15.0
1,293
September 30, 2019
Six months ended
19,802
11.6
701
(1.1)
1,441
29.1
1,269
September 30, 2018
(Note) Comprehensive income: Six months ended September 30, 2019: ¥1,226 million [-14.1%]
Six months ended September 30, 2018: ¥1,427 million [24.9%]

Six months ended
September 30, 2019
Six months ended
September 30, 2018

Earnings per share

Diluted earnings per
share

Yen

Yen

52.61

―

51.02

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of September 30,
48,65532,7322019
As of March 31,
49,34532,0682019(Reference) Equity: As of September 30, 2019: ¥32,496 million
As of March 31, 2019: ¥31,835 million

Equity ratio

%

1.9
47.5

Net assets per share
%

Yen

66.8

1,325.57

64.5

1,290.73

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―

18.00

18.00

―

19.00

19.00

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

Total(Note) Revision to the dividend forecast announced most recently: Yes
For the year-end dividends in the Fiscal year ending March 31, 2020, please refer to “Notice of Revisions (Upside) to
Annual Dividend Forecast” announced today.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2020
(April 1, 2019 to March 31, 2020)(% indicates changes from the previous corresponding period.)
Profit attributable
Earnings
TurnoverOperating income Ordinary income
to owners ofper share
parent company
Million yen%

Million yen%

Million yen%

39,000
2.6
1,700
1.8
2,500 (3.1)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen

%

Yen

1,900

(7.5)

77.50

* 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.: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) 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 September 30, 2019: 29,347,500 shares
As of March 31, 2019: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of September 30, 2019: 4,832,112 shares
As of March 31, 2019: 4,683,183 shares
3) Average number of shares during the period
Six months ended September 30, 2019: 24,582,786 shares
Six months ended September 30, 2018: 24,881,927 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
publication of this document. They are not intended as a commitment by the Company that these results will beachieved. Actual results may differ considerably as a result of numerous factors. For the assumptions used in thefinancial 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 Six Months Ended September 30, 2019

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 .............................................................................................................. 2(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) Consolidated Quarterly Statements of Cash Flows ...................................................................................... 8(4) Notes to the Consolidated Quarterly Financial Statements ........................................................................ 9(Notes on going concern assumption) ........................................................................................................ 9(Notes in the case of significant changes in shareholders’ equity) ............................................................. 9(Changes in accounting policies) ................................................................................................................. 9(Segment information, etc.) ....................................................................................................................... 91

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the six months ended September 30, 2019, the world economy remained on a modest recovery trend,
but the sense of uncertainty could not be dispelled due to concerns over an economic slowdown on the back of
the trade friction between the United States and China and a downward turn in economic sentiment in Japan,
among other factors.
In terms of market trends affecting the Group, demand for Hume pipes in the sewerage-related businessexceeded levels in the same period in the previous year, but demand for concrete pile products in thefoundations business fell short of that in the previous fiscal year.
Under such business conditions, the Group worked diligently on three basic strategies—Strategy for theGroup’s growth, Strategy to improve competitiveness, and Strategy to enhance the management foundation—
to pursue stable profits and sustainable growth, which are the key objectives of the basic policy in Evolution
All Japan II (fiscal 2018 to 2020), the Group’s three-year medium-term management plan.
In the six months ended September 30, 2019, orders received totaled ¥14,775 million (down 20.6% year onyear), and turnover amounted to ¥17,115 million (down 13.6% year on year).
As for profit and loss, operating income was ¥930 million (up 32.6% year on year), ordinary income was¥1,658 million (up 15.0% year on year), mainly because of equity in earnings of affiliates and dividend
income; and profit attributable to owners of parent was ¥1,293 million (up 1.9% year on year).

(2) Explanation of Financial Position
1) Assets, Liabilities and Net Assets
Total assets as of September 30, 2019, decreased ¥690 million from the end of the previous consolidated
fiscal year, amounting to ¥48,655 million. This was mainly because, under non-current assets, while buildings
and structures increased ¥1,319 million, under current assets, cash and deposits decreased ¥629 million, andnotes and accounts receivable - trade decreased ¥1,601 million.
In addition, under liabilities, total liabilities decreased ¥1,354 million from the end of the previous
consolidated fiscal year to ¥15,923 million. This was mainly because, under current liabilities, notes andaccounts payable – trade decreased ¥701 million, and short-term loans decreased ¥218 million.
Under net assets, total net assets increased ¥664 million from the end of the previous consolidated fiscal
year, to ¥32,732 million. This was mainly because, under retained earnings, while profit attributable to ownersof parent company increased ¥1,293 million, there was a decrease of ¥458 million for cash dividends paid.
2) Cash Flows
Cash and cash equivalents (hereinafter, “funds,” referring to cash and deposits minus time deposits withdeposit terms of over three months) in the six months ended September 30, 2019 decreased ¥631 million fromthe end of the previous consolidated fiscal year, to ¥10,379 million.
(Cash flows from operating activities)
Funds provided by operating activities during the six months ended September 30, 2019, decreased ¥1,203
million to ¥913 million. This was mainly because of ¥1,659 million increase in profit before income taxes andminority interests, a decrease of ¥1,600 million in notes and accounts receivable - trade, a decrease of ¥700
million in notes and accounts payable - trade, an increase of ¥681 million in inventories, share of income ofassociates of ¥609 million, and income taxes paid of ¥423 million.

2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019

(Cash flows from investing activities)
Funds used in investing activities during the six months ended September 30, 2019 increased ¥308 million
year on year to ¥764 million. This was mainly because of ¥811 million in purchase of fixed assets.
(Cash flows from financing activities)
Funds used in financing activities during the six months ended September 30, 2019 increased ¥328 million
year on year to ¥783 million. This was mainly because of ¥457 million in cash dividends paid and a decreaseof ¥221 million in short-term loans.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the results forecasts pertaining to the fiscal year ending March 31, 2020, there has been nochange to the full-year results forecast published in the “Notice of Revisions to Annual Performance Forecast”
dated October 29, 2019.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019

2. Consolidated Quarterly Financial Statements and Important Notes(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise 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
Other
Total current liabilities
Non-current liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

4

As of September 30, 201911,051,251
12,505,846
2,024,057
534,604
286,154(16,589)
26,385,324

10,421,942
10,904,295
2,737,044
504,441
349,637(12,584)
24,904,776

2,861,064
3,691,707
2,675,595
9,228,367
101,360

4,180,115
3,694,593
1,812,593
9,687,302
87,625

13,331,756
430,828(131,930)
13,630,654
22,960,382
49,345,707

13,722,393
384,439(130,893)
13,975,940
23,750,868
48,655,645

10,664,700
1,230,261
432,870
182,750
1,060,491
13,571,074

9,963,139
1,012,091
382,093
189,054
716,559
12,262,938

36,0178,657
2,710,572
951,237
3,706,483
17,277,558

17,217
8,657
2,697,251
936,979
3,660,105
15,923,043

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019

(Thousand yen)
As of March 31, 2019
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 September 30, 2019

5,251,400
4,736,524
23,126,662(1,910,923)
31,203,663

5,251,400
4,736,524
23,961,709(2,014,586)
31,935,047

665,198
233,208(267,057)
631,349
233,135
32,068,148
49,345,707

604,944
209,601(252,765)
561,780
235,773
32,732,602
48,655,645

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Six Months Ended September 30(Thousand yen)
For the six months ended
September 30, 2018
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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
State subsidy
Total extraordinary income
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent company

6

For the six months ended
September 30, 201919,802,100
16,954,357
2,847,742
2,146,079
701,662

17,115,513
14,129,160
2,986,352
2,055,732
930,620

1,134
56,095
663,772－
75,107796,110

1,045
58,859609,889
14,34864,827
748,970

13,09433,421
9,412
55,927
1,441,846

14,513―
6,661
21,175
1,658,415

140,418
1,440
141,858
1,583,704
337,991(28,253)309,738
1,273,966
4,610
1,269,355

―
1,440
1,440
1,659,855
373,017(9,028)363,988
1,295,867
2,638
1,293,229

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019

Consolidated Quarterly Statements of Comprehensive Income
Six Months Ended September 30(Thousand yen)
For the six months ended
September 30, 2018
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 attributable to non-controllinginterests

7

For the six months ended
September 30, 2019

1,273,966

1,295,867

79,44834,96436,183
3,022
153,619
1,427,586(39,573)(23,606)
16,867(23,255)(69,568)
1,226,298

1,422,975

1,223,660

4,610

2,638

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019(3) Consolidated Quarterly Statements of Cash Flows(Thousand yen)
For the six months ended
September 30, 2018
Cash flows from operating activities
Profit before income taxes and minority interests
Depreciation
Increase (decrease) in provision for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (income) loss of associates
Loss (gain) on sales of fixed assets
State subsidy
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of fixed assets
Proceeds from sales of fixed assets
Proceeds from state subsidy
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Net foreign exchange on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

8

For the six months ended
September 30, 2019

1,583,704
322,800(24,777)
4,413
23,961

1,659,855
311,890(4,945)
6,303
19,278―(18,800)(57,230)
13,09448,480(663,772)(140,418)(1,440)(59,905)
14,513(9,491)(609,889)―(1,440)1,392,258

1,600,862

36,73921,799(681,773)(63,654)(251,028)(700,957)(78,665)
158,160(18,412)2,369,668
178,480(13,215)(418,609)
2,116,324(5,620)(305,290)
2,045
1,152,981
198,255(14,339)(423,794)
913,102―
19,999(656,620)
160,104
1,440
18,965(456,110)(1,820)―(811,291)―
1,440
47,130(764,540)

11,365(31,265)(434,771)(454,671)(13,770)
1,191,771
8,778,218
9,969,990(221,908)(103,370)(457,822)(783,101)
3,410(631,129)
11,010,749
10,379,620

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019(4) 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)(Adoption of IFRS 16 [Leases])
The Company’s consolidated subsidiaries outside of Japan have adopted IFRS 16 (Leases) from the first quarterof the fiscal year under review.
The adoption of this accounting standard has a minimal impact on consolidated financial statements.
We have adopted the method of recognizing the cumulative impact of adopting this standard on the initialbalance at the date of adoption (retrospective restatement approach).
(Segment information, etc.)
I. For the six months ended September 30, 2018 (April 1, 2018 to September 30, 2018)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Amountrecorded ontheAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate14,580,920

4,432,641

700,339

19,713,900

88,20019,802,100―

19,802,100

1,494

―

20,21421,708―21,708(21,708)―

14,582,414
613,482

4,432,641
464,924

720,553
409,339

19,735,609
1,487,746

88,20021,71919,823,809
1,509,465(21,708)(807,803)

19,802,100
701,662

Total

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the sport facility
management business, and the rental business.
2. An adjustment to segment income of ¥(807,803) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportablesegments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

9

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2019

II. For the six months ended September 30, 2019 (April 1, 2019 to September 30, 2019)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Amountrecorded ontheAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate11,252,851

5,083,374

698,107

17,034,332

81,18017,115,513―

17,115,513

3,189

―

19,70322,892―

22,892(22,892)―

11,256,040
555,677

5,083,374
679,829

717,810
411,500

17,057,225
1,647,007

81,18016,336

17,138,406
1,663,344(22,892)(732,723)

17,115,513
930,620

Total

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the sport facility
management business and the rental business.
2. An adjustment to segment income of ¥(732,723) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportablesegments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information concerning changes in reportable segments, etc.
(Changes to classification of reportable segments)
Beginning with the first quarter of the fiscal year under review, the Group has changed its segments from the“Concrete Products,” “Construction,” and “Real Estate Development” to the “Foundations,” “Sewerage-related,”and “Solar Power Generation and Real Estate” in order to more accurately assess management results in eachsegment.
(Changes to method for measuring segment income)
Beginning with the first quarter of this consolidated fiscal year, the Group has presented corporate expenses that
had previously been allocated to each segment as “Adjustments” that are not attributable to reportable segments
in order to more accurately assess management results in each segment.
The segment information for the second quarter of the previous consolidated fiscal year is disclosed based on themethod adopted with this change.

10