Consolidated Quarterly Financial Results
for the Nine Months Ended December 31, 2015
[Japanese GAAP]
February 12, 2016
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: Takamasa Ishii, Executive Officer and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of filing quarterly securities report: February 12, 2016
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, 2015 (April 1, 2015 to December 31,
2015)(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
24,676(6.9)
1,325 (18.8)
1,678 (51.0)
1,318
December 31, 2015
Nine months ended
26,517(2.6)
1,633 (23.8)
3,423
28.1
2,887
December 31, 2014
(Note) Comprehensive income: Nine months ended December 31, 2015: ¥1,428 million [(45.4)%]
Nine months ended December 31, 2014: ¥2,616 million [25.8%]

Nine months ended
December 31, 2015
Nine months ended
December 31, 2014

Earnings per share

Diluted earnings per
share

Yen

Yen

50.96

―

109.81―(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of December 31,
43,30328,7222015
As of March 31,
46,00728,0472015(Reference) Equity: As of December 31, 2015: ¥28,539 million
As of March 31, 2015: ¥27,871 million

Equity ratio
%

65.9
60.6

%

(54.3)
56.5

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―
―

15.00

15.00

12.00

12.00

Fiscal year ended March 31, 2015
Fiscal year ending March 31, 2016
Fiscal year ending March 31, 2016
(Forecast)

Total(Note) Revision to the dividend forecast announced most recently: No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2016 (April 1, 2015 to March 31,
2016)(% 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%

36,5001.3
2,100 (2.4)
2,700 (35.4)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen

%

Yen

2,000

(44.2)

76.78* 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(Note) For details, please refer to “2. Matters Concerning Summary Information (Notes) (3) Changes in
Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement” on page 4 of theattachment.
(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, 2015: 29,347,500 shares
As of March 31, 2015: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of December 31, 2015: 3,710,780 shares
As of March 31, 2015: 3,298,111 shares
3) Average number of shares during the period
Nine months ended December 31, 2015: 25,866,102 shares
Nine months ended December 31, 2014: 26,292,568 shares

* Presentation regarding the implementation status of the quarterly review procedures
These quarterly financial results are outside the scope of quarterly review procedures under the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial results, review procedures forthe consolidated quarterly financial statements have been completed.
* 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 Nine Months Ended December 31, 2015

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. Matters Concerning Summary Information (Notes) ....................................................................................... 4(1) Changes in Significant Subsidiaries during the Period under Review ....................................................... 4(2) Application of Accounting Procedures Specific to Preparation of Consolidated Quarterly Financial
Statements .................................................................................................................................................. 4(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement ...... 4
3. Consolidated Quarterly Financial Statements ................................................................................................ 5(1) Consolidated Quarterly Balance Sheets ..................................................................................................... 5(2) Consolidated Quarterly Statements of Income and Comprehensive Income ............................................. 7
Consolidated Quarterly Statements of Income ........................................................................................... 7
Consolidated Quarterly Statements of Comprehensive Income ................................................................. 8(3) 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(Segment information) ............................................................................................................................... 91

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Japanese economy continued on a moderate recovery track during the nine months ended December 31,
2015, amid an improving trend in employment and other areas. The outlook remained uncertain, however, due
to risk factors including an economic downswing in China and other emerging nations.
Under these circumstances, the Group is working diligently toward stable profits and sustainable growth inline with the basic policy of the new medium-term management plan, “Evolution All Japan,” that covers thethree years from fiscal 2015.
In the concrete products industry where the Company operates, demand for both Hume pipes and pile
products weakened compared to the same period of the previous fiscal year.
Orders received for products and construction, etc. for the nine months ended December 31, 2015, were¥23,187 million (a year-on-year decline of 4.2%). Turnover including revenue from products, construction andreal estate amounted to ¥24,676 million (down 6.9% year on year).
Looking at profit and loss, operating income was ¥1,325 million (a year-on-year decline of 18.8%).
Ordinary income was ¥1,678 million (a year-on-year drop of 51.0%), due to a decrease in share of income ofassociates as a result of posting “negative goodwill” of ¥1,085 million arising from acquisitions of shares in thesame period of the previous fiscal year. Profit attributable to owners of parent company was ¥1,318 million (ayear-on-year decrease of 54.3%).
Segment results are indicated as follows.
1) Concrete Products
Orders received were ¥13,386 million (down 9.1% year on year). Turnover was ¥14,586 million (12.1%
down year on year), mainly due to a decline in precast products that offset an increase in sales of mainstay
Hume pipes and pile products. Segment loss was ¥26 million, mainly due to a decrease in highly profitableprecast products.
The total sales composition ratio was 59.1%.
2) Construction
Orders received were ¥9,651 million (up 3.7% year on year) and turnover was ¥8,897 million (up 0.8% year
on year). Segment income amounted to ¥908 million (rising 31.1% year on year), mainly due to an increase inhighly profitable construction.
The total sales composition ratio was 36.1%.
3) Real Estate Development
Turnover was ¥731 million (down 6.0% year on year), due to a decrease in rental real estate income.
However, segment income amounted to ¥310 million (rising 9.4% year on year), due mainly to reduced selling,
general and administrative expenses.
The total sales composition ratio was 3.0%.
4) Others
Orders received were ¥149 million (down 8.1% year on year) and turnover was ¥460 million (rising 45.8%
year on year), reflecting the contribution of the solar power generation business. Segment income amounted to¥133 million (up 255.9% year on year).
The total sales composition ratio was 1.8%.

2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

(2) Explanation of Financial Position
Total assets as of December 31, 2015, fell by ¥2,704 million from the end of the previous fiscal year to¥43,303 million. This was due to factors including decreases under current assets of ¥1,518 million in cash anddeposits, ¥508 million in notes and accounts receivable - trade, and ¥342 million in merchandise and finishedgoods.
In addition, liabilities declined ¥3,379 million from the end of the previous fiscal year to ¥14,581 million.
This was due to factors including declines under current liabilities of ¥2,316 million in notes and accounts
payable - trade and ¥441 million in income taxes payable.
Net assets grew by ¥675 million from the end of the previous fiscal year to ¥28,722 million. This was due toan increase of ¥870 million in retained earnings, offsetting the impact of acquiring ¥305 million in treasury
shares, among other factors.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
With regard to the results forecast for the fiscal year ending March 31, 2016, there has been no change to thefull-year results forecast published in the “Consolidated Financial Results for the Fiscal Year Ended March 31,
2015 [Japanese-GAAP]” dated May 14, 2015.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

2. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period under Review
No relevant items.
(2) Application of Accounting Procedures Specific to Preparation of Consolidated Quarterly Financial
Statements
No relevant items.
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(Changes in accounting policies)
Effective from the first quarter of the fiscal year ending March 31, 2016, the Company has applied the“Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement
No. 21, September 13, 2013; hereinafter the “Business Combinations Standard”), the “Accounting Standard forConsolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013; hereinafter the“Consolidated Financial Statements Standard”), and the “Accounting Standard for Business Divestitures”(ASBJ Statement No. 7, September 13, 2013; hereinafter the “Business Divestitures Standard”) and others.
Accordingly, the Company’s accounting policies have been changed. The difference arising from a change in
the Company’s ownership interest in a subsidiary over which the Company continues to have control isrecorded as share premium and acquisition related costs are expensed in the consolidated fiscal year when they
are incurred. Also, for business combinations to be conducted at and after the beginning of the first quarter ofthe fiscal year ending March 31, 2016, the accounting method was changed to reflect adjustments to theallocation of acquisition cost under provisional accounting treatment on the consolidated quarterly financial
statements of the quarterly financial period in which the days of the relevant business combinations areincluded. In addition, the Company has changed the presentation of profit and other related items, and thepresentation of minority interests to non-controlling interests. To reflect these changes in presentation,
reclassifications of accounts have been made to the consolidated quarterly financial statements andconsolidated financial statements for the nine months ended December 31, 2014 and fiscal year ended March
31, 2015.
The Business Combinations Standard and others were applied in accordance with transitional treatments
stipulated in Paragraph 58-2 (4) of the Business Combinations Standard, Paragraph 44-5 (4) of theConsolidated Financial Statements Standard and Paragraph 57-4 (4) of the Business Divestitures Standard, andthey have been prospectively applied from the beginning of the first quarter of the fiscal year ending March 31,
2016.
These changes have no effect on the consolidated financial statements for the nine months ended December
31, 2015.

4

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2015
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

5

As of December 31, 2015

7,549,232
12,986,787
2,156,208
617,688543,320(17,523)
23,835,714

6,030,593
12,478,578
1,813,339
423,300
329,675(15,211)21,060,274

3,189,979
3,712,154
2,297,497
9,199,631
103,366

3,145,311
3,694,355
2,199,814
9,039,481
132,668

12,610,997
586,318(328,131)
12,869,185
22,172,183
46,007,898

12,820,276
554,106(302,987)
13,071,395
22,243,544
43,303,818

11,027,434
1,622,812
441,781
192,283
1,112,419
14,396,732

8,711,212
1,213,400――
1,059,124
10,983,737

50,767
22,9182,044,534
1,445,925
3,564,146
17,960,878

36,017
22,9182,106,012
1,432,316
3,597,265
14,581,002

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

(Thousand yen)
As of March 31, 2015
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

6

As of December 31, 2015

5,251,400
4,739,426
17,955,480(912,998)
27,033,308

5,251,400
4,739,478
18,825,948(1,218,055)
27,598,770

940,031
15,434(117,392)
838,073
175,637
28,047,019
46,007,898

935,405
118,269(112,904)
940,769
183,275
28,722,816
43,303,818

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

(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, 2014

For the nine months ended
December 31, 2015

26,517,088
21,836,301
4,680,786
3,047,221
1,633,564

24,676,335
20,433,503
4,242,832
2,916,950
1,325,881

1,142
89,493
1,501,137
255,205
1,846,979

687
79,334385,186
129,284
594,492

26,822―30,71857,541
3,423,002

24,762
179,821
37,232
241,816
1,678,557―
222
128,110
128,333

56,179――56,17923,610―8,539
32,1503,519,185
572,616
47,608620,224
2,898,960
11,7132,887,247

2,296
86,224―88,5201,646,216
233,468
86,916320,385
1,325,831
7,638
1,318,192

TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of associates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
State subsidy
Gain on sales of fixed assets
Insurance income
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Structural reform expenses
Loss on sales of golf club memberships
Total extraordinary losses
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

7

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

Consolidated Quarterly Statements of Comprehensive Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 2014
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

8

For the nine months ended
December 31, 2015

2,898,960

1,325,831(224,852)(89,431)
13,14018,509(282,634)
2,616,326

23,897
102,835
14,285(38,322)
102,696
1,428,527

2,604,613

1,420,889

11,713

7,638

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

(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.
(Segment information)
I. For the nine months ended December 31, 2014 (April 1, 2014 to December 31, 2014)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Others(Note 1)

Total

Amountrecorded ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)Concrete
Products

Construction

Real Estate
Development

16,600,039

8,823,339

777,970

26,201,349

315,738

26,517,088―

26,517,088

8,643

―

24,65533,299101

33,400(33,400)―

16,608,683
618,930

8,823,339
693,309

802,625
283,861

26,234,649
1,596,102

315,840
37,462

26,550,489
1,633,564(33,400)―

26,517,088
1,633,564

Total(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the environmental
equipment sales business, the sport facility management business, and the rental business.
2. Total segment income corresponds to operating income on the Consolidated Quarterly Statements of Income.

2. Information concerning impairment loss on non-current assets, goodwill, etc. by reportable segment
During the second quarter of the fiscal year ended March 31, 2015, the Company acquired additional sharesin ASAHI CONCRETE WORKS CO., LTD., bringing it under the scope for applying the equity method. The
associated ¥1,085,360 thousand in negative goodwill included in share of income of associates is not allocated toa reportable segment.

9

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2015

II. For the nine months ended December 31, 2015 (April 1, 2015 to December 31, 2015)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income(loss)

Others(Note 1)

Total

Amountrecorded ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)Concrete
Products

Construction

Real Estate
Development

14,586,639

8,897,703

731,615

24,215,958

460,377

24,676,335―

24,676,335

8,457

―

31,90840,366389

40,755(40,755)―

14,595,097

8,897,703

763,523

24,256,324

460,766

24,717,091(40,755)

24,676,335(26,810)

908,785

310,592

1,192,566

133,314

1,325,881―

1,325,881

Total(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the environmental
equipment sales business, the sport facility management business, the rental business, and solar power
generation business.
2. Total segment income (loss) corresponds to operating income on the Consolidated Quarterly Statements ofIncome.

2. Information concerning impairment loss on non-current assets, goodwill, etc. by reportable segment
No relevant items.

10