Consolidated Quarterly Financial Results
for the Three Months Ended June 30, 2022
[Japanese GAAP]
August 10, 2022
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: August 10, 2022
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 Three Months Ended June 30, 2022 (April 1, 2022 to June 30, 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%

Three months ended
7,677
16.0
231 (27.4)
784
(7.1)
June 30, 2022
Three months ended
6,616 (11.8)
318 (33.1)
844
4.0
June 30, 2021
(Note) Comprehensive income: Three months ended June 30, 2022: ¥495 million [-2.0%]
Three months ended June 30, 2021: ¥505 million [-55.8%]
Earnings per share

Diluted earnings per
share

Yen

Yen

27.37

―

28.87

―

Three months ended
June 30, 2022
Three months ended
June 30, 2021
(2) Consolidated Financial Position
Total assets

Million yen

Net assets

Equity ratio

Million yen

%

661

(6.0)

704

10.3

Net assets per share

Million yen%

Yen

As of June 30, 2022
52,03436,902As of March 31,
52,12136,9352022(Reference) Equity: As of June 30, 2022: ¥36,594 million
As of March 31, 2022: ¥36,626 million

70.3

1,513.82

70.3

1,514.78

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
―

―

―

20.00

20.00

―

―

21.00

21.00

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
(Forecast)

Total(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

15,0006.2
500 (22.4)
1,200 (14.1)
First half
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

900
1,800

(20.9)(15.7)

37.22
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 June 30, 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 June 30, 2022: 5,174,111 shares
As of March 31, 2022: 5,168,111 shares
3) Average number of shares during the period
Three months ended June 30, 2022: 24,177,389 shares
Three months ended June 30, 2021: 24,387,245 shares* The 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 note
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 Three Months Ended June 30, 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.) ............................................................................................................. 91

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2022

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months ended June 30, 2022, the Japanese economy showed signs of a recovery in personal
consumption and corporate production activities, with the number of new coronavirus cases remaining relatively
low. However, the outlook remained uncertain due to factors such as the rapid depreciation of the yen, soaring
crude oil and raw materials prices, and concerns over the persisting situation in Ukraine.
In the market environment affecting the Group, public works investment was solid due to the promotion ofdisaster prevention and mitigation measures and measures to improve national resilience. Private capital
investment also showed indications of a recovery, but conditions remain harsh overall as a result of intensecompetition over orders and the soaring prices of raw materials and energy, among other factors.
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 three months ended June 30, 2022, turnover amounted to ¥7,677 million (up16.0% year on year). Operating income was ¥231 million (down 27.4% year on year), partly due to the impactof the rapid rise in raw materials prices on already-contracted projects; ordinary income was ¥784 million (down
7.1% year on year); and profit attributable to owners of parent company was ¥661 million (down 6.0% year onyear).
The main initiatives under the medium-term management plan, the 21-23 Plan, for the three months ended
June 30, 2022, included completion of development of the Wellman vertical water tank for urban flooding
countermeasures and the on-site introduction and additional functionality for the “Pile-ViMSys” next-generation
DX construction management system. The Group also proceeded with research to enhance the functionality of
e-CON®, a CO2 emission-reducing material for the carbon-neutral era.
The market environment affecting the Company is expected to remain harsh, but 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 business restructuring, as well as the research and developmentof products and construction techniques that will drive growth, with the aim of further stabilizing themanagement foundation and achieving sustainable growth.
An overview of the business segments is provided below.
1) Foundations business
Turnover totaled ¥4,825 million (up 14.7% year on year) and operating income was ¥48 million (down
20.7%). Shipments of concrete piles progressed well due to factors such as private-sector factory construction,
but income declined despite the increase in turnover, largely due to the impact of the rapid rise in raw materials
prices. The Group will progressively adjust selling prices and work to raise profitability by improving profit
ratios through thorough profit and loss management for each property and strengthening sales by expanding
our business domain through nodular piles.
Sewerage-related business
Turnover totaled ¥2,463 million (up 21.6% year on year) and operating income was ¥360 million (down
10.9%). As climate disasters caused by climate change grow more intense and frequent, large-scale
earthquakes become a pressing risk, and social infrastructure ages, the Group has obtained Japan Sewage
Works Association approval for its Type 1 and Type 2 Steel Composite Pipes as water storage pipes,
compatible with sharp curves and large depths, as high value-added products geared toward disasterprevention, disaster mitigation, and national resilience measures, and is promoting sales activities that
integrate design. The Group will continue to work to improve earning capacity with design proposals for precast products and high value-added products related to disaster prevention and mitigation and national
resilience, and the development of urban disaster prevention solution products using concrete technology.
2)2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2022

Solar Power Generation and Real Estate business
Turnover amounted to ¥376 million (up 2.4% year on year) and operating income was ¥223 million (up6.6%). 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.
3)

OthersIn Others, turnover totaled ¥12 million (down 26.7% year on year) and operating income was ¥9 million(down 33.7%).
4)(2) Explanation of Financial Position
Total assets as of June 30, 2022, amounted to ¥52,034 million, at the same level as the end of the previous
consolidated fiscal year.
In addition, under liabilities, total liabilities were ¥15,131 million, at the same level as the end of the previous
consolidated fiscal year.
Under net assets, total net assets were ¥36,902 million, at the same level as the end of the previous
consolidated fiscal year.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the results forecasts for the fiscal year ending March 31, 2023, there has been no change to thefirst-half and full-year results forecasts 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 Three Months Ended June 30, 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 June 30, 2022

13,065,056

13,199,881

10,284,336

9,744,856

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

2,841,849
673,287
318,030(12,142)
26,765,762

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

3,828,091
3,608,446
1,833,166
9,269,704
176,850

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

15,550,451
303,552(32,250)
15,821,753
25,268,309
52,034,071

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

8,836,604
1,006,976
92,138―821
1,476,392
11,412,933

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

25,975
14,9072,645,089
1,032,508
3,718,480
15,131,413

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 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 June 30, 2022

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

5,251,400
4,773,375
28,012,817(2,349,346)
35,688,246

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

719,737
176,4319,679
905,848
308,562
36,902,657
52,034,071

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2022

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Three Months Ended June 30(Thousand yen)
For the three months ended
June 30, 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
Donations
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
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 three months ended
June 30, 2022

6,616,260
5,360,210
1,256,050
937,306
318,743

7,677,991
6,448,751
1,229,240
997,707
231,53262
100,577
401,279
3,643
29,785535,348

63
88,978389,384
45,95038,507562,884

3,873
20
5,284
9,177
844,914

3,016
2,045
4,444
9,505
784,911

―
―

165
165

―
―
844,914
92,52549,867
142,393
702,520(1,654)704,1755
5785,071
55,81064,432120,243664,8283,206
661,622

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2022

Consolidated Quarterly Statements of Comprehensive Income
Three Months Ended June 30(Thousand yen)
For the three months ended
June 30, 2021

For the three months ended
June 30, 2022

702,520664,828(168,825)(19,297)
1,703(10,590)(197,010)
505,510(156,810)(17,991)
2,726
2,613
(169,463)
495,365

507,165

492,158(1,654)

3,206

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

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 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, plant andequipment. 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 view of the
expectation of more stable operation throughout the period of use than was previously the case, due to improved
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 three months ended June 30, 2022, operating income, ordinary income, and profit before
income taxes and minority interests were each ¥26 million higher than when calculated using the previous method.

8

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2022

(Segment information, etc.)
I. For the three months ended June 30, 2021 (April 1, 2021 to June 30, 2021)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate4,205,336

2,026,567

932
4,206,269
60,981

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

Total

Others(Note 1)

Total

367,8216,599,725

16,535

6,616,260―

6,616,260

―

9,444

10,377―

10,377(10,377)―

2,026,567
405,263377,265
209,395

6,610,102
675,640

16,535
13,614

6,626,637
689,254(10,377)(370,511)

6,616,260
318,743(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥ (370,511) 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.
II. For the three months ended June 30, 2022 (April 1, 2022 to June 30, 2022)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate4,825,539

2,463,814

1,673
4,827,213
48,375

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

Total

Others(Note 1)

Total

376,520

7,665,875

12,115

7,677,991―

7,677,991

―

9,432

11,106―

11,106(11,106)―

2,463,814
360,914385,953
223,121

7,676,981
632,411

12,1159,020

7,689,097
641,432(11,106)(409,899)

7,677,991
231,532(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥ (409,899) 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