Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]May 11, 2023
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: https://www.nipponhume.co.jp
Representative: Tomoyuki Masubuchi, President and Representative Director
Contact: Hirokazu Suzuki, Director and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of Annual General Meeting of Shareholders: June 29, 2023
Scheduled date of commencing dividend payments: June 30, 2023
Scheduled date of filing annual securities report: June 29, 2023
Preparation of supplementary briefing material on financial results: Yes
Holding of 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 Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(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%

Fiscal year ended
31,876
1,236 (14.7)
2,102 (16.8)
8.1
March 31, 2023
Fiscal year ended
29,501
1,449 (16.2)
2,526
(6.8)
(3.1)
March 31, 2022
(Note) Comprehensive income: Fiscal year ended March 31, 2023: ¥1,867 million [7.7%]
Fiscal year ended March 31, 2022: ¥1,734 million [(48.2)%]
Earnings per
share

Diluted earnings
per share

Yen

Fiscal year ended
68.12
March 31, 2023
Fiscal year ended
87.95
March 31, 2022
(Reference) Share of income (loss) of associates:(2) Consolidated Financial Position
Total assets
Million yen

Million yen

%

1,642

(23.1)

2,136

0.3

Ordinary
incometo total assets

Return on
equityOperatingincome toturnover

Yen

%

%

%

―

4.4

3.9

3.9

―

5.9

4.9

4.9

Fiscal year ended March 31, 2023: ¥609 million
Fiscal year ended March 31, 2022: ¥710 million
Net assets
Million yen

As of March 31,
54,97938,2012023
As of March 31,
52,12136,9352022(Reference) Equity: As of March 31, 2023: ¥37,899 million
As of March 31, 2022: ¥36,626 million

Equity ratio

Net assets per share
%

Yen

68.9

1,575.56

70.3

1,514.78

(3) Consolidated Cash FlowsNet cash provided by Net cash provided by Net cash provided by(used in) operating(used in) investing(used in) financing
activities
activities
activities
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

649

(757)

(519)

12,418

972

561

(823)

13,021

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Total

Yen

Yen

Yen

Yen

―

―

―

20.00

20.00

―

―

―

21.00

21.00

―

―

―

25.00

25.00

Total
dividends

Payoutratio(consolidated)

Yen Million yen

Dividends
to netassets(consolidated)

%

%

502

22.7

1.3

539

30.8

1.4

36.4

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024
(April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable toEarnings
TurnoverOperating income
Ordinary income
owners of parent
per sharecompany
Million yen

Full year

32,300% Million yen%

Million yen%

Million yen

%

Yen

1.3

5.2

2,150

2.3

1,650

0.5

68.59

1,300

* 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) 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(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023: 29,347,500 shares
As of March 31, 2022: 29,347,500 shares

2) Total number of treasury shares at the end of the period
As of March 31, 2023: 5,292,998 shares
As of March 31, 2022: 5,168,111 shares
3) Average number of shares during the period
Fiscal year ended March 31, 2023: 24,110,733 sharesFiscal year ended March 31, 2022: 24,287,417 shares(Reference) Summary of Non-consolidated Financial Results
Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit after income
TurnoverOperating income
Ordinary income
taxes
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022

Million yen%

Million yen%

Million yen%

Million yen%

30,4366.0

1,255(19.6)

1,857(14.8)

1,199(33.2)

28,702

(1.9)

1,561

(9.0)

2,179

(3.7)

1,796

(6.6)

Earnings per share
Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2022
(2) Non-Consolidated Financial Position
Total assets
Million yen

Diluted earnings per share
Yen

Yen

48.15

―

71.60

―

Net assets
Million yen

As of March 31,
45,05029,3542023
As of March 31,
42,85528,591
2022(Reference) Equity: As of March 31, 2023: ¥29,354 million
As of March 31, 2022: ¥28,591 million

Equity ratio

Net assets per share
%

Yen

65.2

1,181.14

66.7

1,144.68* The financial results are not subject to auditing 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. Overview of Operating Results (4)Future Outlook” on page 4 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Table of Contents
1. Overview of Operating Results ........................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review .................................................. 2(2) Overview of Financial Position in the Fiscal Year under Review ................................................... 3(3) Overview of Cash Flows in the Fiscal Year under Review ............................................................. 3(4) Future Outlook ................................................................................................................................ 4
2. Basic Approach Concerning Selection of Accounting Standards ........................................................ 4
3. Consolidated Financial Statements ...................................................................................................... 5(1) Consolidated Balance Sheets .......................................................................................................... 5(2) Consolidated Statements of Income and Comprehensive Income .................................................. 7(3) Consolidated Statements of Changes in Net Assets ........................................................................ 9(4) Consolidated Statements of Cash Flows ....................................................................................... 11(5) Notes to the Consolidated Financial Statements ........................................................................... 12(Notes on going concern assumption) ........................................................................................... 12(Changes in accounting policies that are inseparable from changes in accounting estimates, andchanges in accounting estimates) .................................................................................................. 12(Segment information, etc.) ........................................................................................................... 13(Per share information) ................................................................................................................. 16(Significant subsequent events) ..................................................................................................... 16

1

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2023, the Japanese economy began to move toward a full-fledged
resumption of economic activities, and signs of recovery were seen in social and economic activities, such as theyear-end and New Year holidays when consumers no longer had to restrict their activities for the first time inthree years; nonetheless, the business environment remained unpredictable amid 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 addition, conditions remained harsh overall due tofactors such as intense competition 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 fiscal year ended March 31, 2023, turnover amounted to ¥31,876 million (up8.1% year on year), operating income was ¥1,236 million (down 14.7% year on year), ordinary income was¥2,102 million (down 16.8% year on year), and profit attributable to owners of parent company was ¥1,642
million (down 23.1% year on year).
The main initiatives for strengthening technological development under the medium-term management plan,
the 21-23 Plan, for the fiscal year ended March 31, 2023, included promotion of the joint development of “seismic
retrofit methods” for locations with difficult construction conditions in the sewerage business. Further, the Group
completed the improvement of the ground sill of the “Wellman vertical water tank” for urban flooding
countermeasures and registered the trademark for it. The Group will continue to make recommendations to urban
areas facing flooding challenges.
In the foundations business, the Group deployed the “Pile-ViMSys” ICT construction management system toconstruction sites nationwide and developed and implemented an electronic bulletin board application linked tothe system, and further improved the efficiency of construction management. Through continued efforts tostreamline quality management and construction management at construction sites using ICT, the Group aims tobecome the construction company of choice.
The initiatives toward a decarbonized society included the pilot construction of products using “e-CON,” alow-carbon concrete that is resistant to salt damage and can reduce CO2 emissions by 80%, and approaches tocommercialization.
Our initiatives toward sustainability resulted in being recognized as a “Health & Productivity Management
Outstanding Organization 2023 (under the large enterprise category),” an honor given to companies that practice
particularly excellent health management. The Group will work to enhance corporate value through the creationof a healthy and vibrant workplace environment for employees.
An overview of the business segments is provided below.
1) Foundations business
Turnover totaled ¥19,918 million (up 18.4% year on year) and operating income was ¥322 million (up37.4%). 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 strive to maintain profitability by optimizing selling prices and improving profit ratios
through strict and precise profit and loss management by expanding our foundations business domain throughnodular piles.
2) Sewerage-related business
Turnover totaled ¥10,464 million (down 6.3% year on year) and operating income was ¥1,680 million(down 12.2%). On the other hand, the Type 1, Type 2, Type 5, and Type 6 Steel Composite Pipes began tocontribute to shipping results, as high value-added products geared toward disaster prevention, disaster
2

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

mitigation, and national resilience measures. In addition, shipments of EMC wall height balustrade, whichallows for rapid construction and measures against aging of expressways and other roads, are progressing
smoothly.
The Group will continue to promote timely product development that meets market needs and improveearning capacity.
3) Solar Power Generation and Real Estate business
Turnover amounted to ¥1,439 million (down 0.3% year on year) and operating income was ¥807 million(up 0.7%). 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 ¥53 million (down 6.5% year on year) and operating income was ¥41 million(down 9.4%).
(Purchase of treasury shares)
At the Board of Directors’ Meeting held on May 25, 2022, the Company resolved to purchase treasury
shares to improve the Group’s capital efficiency and make a greater return of profits to shareholders. A totalof ¥81 million in treasury shares was purchased.
(Introduction of Employee Stock Ownership Plan)
The Company has introduced an Employee Stock Ownership Plan (J-ESOP).
By providing incentives to employees, the Company intends to improve engagement, which in turn willlead to medium to long term and continuous enhancement of corporate value.

(2) Overview of Financial Position in the Fiscal Year under Review
Total assets as of March 31, 2023, had increased ¥2,857 million from the end of the previous consolidated
fiscal year, to ¥54,979 million. This was mainly because, while cash and deposits decreased ¥602 million undercurrent assets, there were increases of ¥1,609 million in notes and accounts receivable – trade and contract assets,¥530 million in merchandise and finished goods, and ¥674 million in investment securities under non-current
assets.
In addition, under liabilities, total liabilities increased ¥1,592 million from the end of the previous
consolidated fiscal year, to ¥16,778 million. This was mainly because of a ¥1,627 million increase in notes andaccounts payable – trade.
Under net assets, total net assets increased ¥1,265 million from the end of the previous consolidated fiscal
year, to ¥38,201 million. This was mainly because, under retained earnings, while profit attributable to ownersof parent company increased ¥1,642 million, there was a decrease of ¥499 million for cash dividends paid, andvaluation difference on available-for-sale securities increased ¥153 million.
(3) Overview of Cash Flows in the Fiscal Year under Review
Cash and cash equivalents (hereinafter, “funds,” referring to cash and deposits minus time deposits withdeposit terms of over three months) as of March 31, 2023, decreased ¥620 million from the end of the previous
consolidated fiscal year to ¥12,418 million.
(Cash flows from operating activities)
Funds provided by operating activities during the consolidated fiscal year ended March 31, 2023, decreased¥322 million year on year to ¥649 million. This was mainly because of a ¥2,138 million increase in profit before
income taxes and minority interests, a ¥1,732 million increase in notes and accounts receivable – trade and3

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

contract assets, ¥1,516 million in notes and accounts payable - trade, ¥795 million in inventories, and ¥609
million in share of income of associates.
(Cash flows from investing activities)
Funds used by investing activities during the consolidated fiscal year ended March 31, 2023, totaled ¥757
million (¥561 million provided in the previous fiscal year). This was mainly because of ¥688 million in purchaseof fixed assets.
(Cash flows from financing activities)
Funds used in financing activities during the consolidated fiscal year ended March 31, 2023, decreased ¥304
million year on year to ¥519 million. This was mainly because of ¥499 million in cash dividends paid.

(4) Future Outlook
In the coming fiscal year, while social activities move toward a return to normal due to the downgrade of COVID19 to Class 5 under the Infectious Disease Control Law, conditions are expected to remain challenging due to factors
such as price hikes from rising material and energy costs against a backdrop of unstable global conditions triggeredby the invasion of Ukraine and monetary tightening measures due to national inflation risks.
In this environment, under the slogan of “making a bold STEP to become a sustainable company!”, the Groupdiligently pursued its medium-term management plan, the 21-23 Plan (fiscal 2021–2023), following the basic policyof “strengthening the foundations business and driving business strategies that capture market changes.” However,in light of significant changes in the external environment under which the 21-23 Plan was premised and our progress
toward the targets, the Group has formulated a new “23-27 Plan R (fiscal 2023–2027)”.
There is a positive external environment for the Group, due in part to the development of social infrastructure
based on the “fundamental plan for national resilience” and “national defense strategies” and business opportunities
to realize carbon neutrality using green materials we have developed. On the other hand, the business environmentis undergoing a major transition such as a shift in emphasis from new construction to renewal of social infrastructure,
the economic impact of a declining population, worsening labor shortages, and digital transformation.
With the Group marking its 100th anniversary in 2025, in the middle of the five-year period of the 23-27 Plan R,
under the mission of “Inheritance and Innovation” we will position the plan as a period of reform to create a growth
path to become a 200-year company and drive the plan forward while adapting to the expected changes in thebusiness environment.
In addition, our management philosophy of “participating in the development of social infrastructure andcontributing to the enrichment of the human environment” is the reason for our presence and we will invest intechnical R&D to propel the management philosophy and make capital investments to fulfill our supply responsibilityof building materials that support social infrastructure, and drive business partnerships and M&A investments tocreate added value.
Even in turbulent times, we will always aspire to our universal founding spirit and corporate philosophy. With
our social mission of being an indispensable industry for social capital, we will grow our company through employee
growth and challenges in the belief that “every challenge is an opportunity for growth.” To continue to be such a
company, we will move forward with our reforms.
In the coming fiscal year, the Group expects a turnover of ¥32,300 million, operating income of ¥1,300 million,
ordinary income of ¥2,150 million, and profit attributable to owners of parent of ¥1,650 million.

2. Basic Approach Concerning Selection of Accounting Standards
The Group’s policy is to prepare its consolidated financial statements based on Japanese-GAAP for the time
being, considering comparability with other companies in the same industry in Japan.
Our policy for the future is to review the application of International Accounting Standards in light of factors
including application trends by companies in Japan.

4

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade and contract
assetsElectronically recorded monetary claims
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Provision for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of March 31, 2023

13,065,056

12,462,419

8,394,344

10,003,539

1,889,992
2,672,504
639,154
276,466(11,872)
26,925,645

2,027,549
3,202,918
913,078
337,076(12,846)
28,933,736

13,678,554(9,793,217)
3,885,336
14,202,342(12,647,268)
1,555,074
3,607,220
187,160
757,252(713,149)
44,102
9,278,894

13,699,198(10,037,091)
3,662,106
14,534,665(12,381,112)
2,153,553
3,608,446
3,729
733,009(700,593)
32,4159,460,251

176,286
176,286

190,637
190,637

15,462,325
14,809296,132(32,250)
15,741,017
25,196,198
52,121,844

16,136,631
10,584
280,126(32,250)
16,395,091
26,045,981
54,979,717

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(Thousand yen)
As of March 31, 2022
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
Deferred tax liabilities
Provision for share-based remuneration for directors
Provision for directors’ retirement benefits
Net defined benefit liability
Long-term lease and guarantee deposited
Other
Total non-current liabilities
Total liabilities
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 March 31, 2023

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

10,145,252
1,070,553
192,212
186,645
3,122
1,341,314
12,939,100

486,320
25,975
14,9072,610,601
548,9319,790
3,696,526
15,186,328

530,200
37,485
14,907
2,707,744
548,932―
3,839,270
16,778,371

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

5,251,400
4,920,916
28,993,638(2,574,346)
36,591,608

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

1,035,136
199,157
73,496
1,307,790
301,946
38,201,346
54,979,717

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year ended
March 31, 2022
TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of associates
Technical support fee
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Real estate development maintenance and management
expenses
Donations
Industrial waste cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Loss attributable to non-controlling interests
Profit attributable to owners of parent company

7

For the fiscal year ended
March 31, 2023

29,501,023
23,942,272
5,558,751
4,108,800
1,449,951

31,876,570
26,509,181
5,367,389
4,131,178
1,236,210

410
197,217710,838
33,39452,156
112,054
1,106,071

496
164,155
609,409
29,73813,132
92,934
909,868

12,70915,832

4,969

4,631

4,238
―
7,547
29,4652,526,557

5,570
4,540
13,48144,055
2,102,023

27,527280,030
307,557

165
36,03136,197―25,16525,1652,808,948
735,775(50,857)
684,917
2,124,031(12,138)
2,136,169

5―
52,138,215
521,648(18,802)502,845
1,635,369(7,055)
1,642,425

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year ended
March 31, 2022

For the fiscal year ended
March 31, 2023

2,124,031

1,635,369(313,804)(32,577)(12,837)(29,940)(389,159)
1,734,871

144,844523
23,88963,221
232,478
1,867,848

1,747,009

1,874,904(12,138)(7,055)

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

8

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2022
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Share premium

Retained earnings

Treasury shares

Total shareholders’ equity

5,251,400

4,773,375

26,366,080(2,163,815)

34,227,040

5,251,400

4,773,375

26,366,080(2,163,815)

34,227,040

Changes of items during period
Dividends of surplus(630,646)(630,646)

Profit attributable to owners ofparent company

2,136,169

2,136,169

Purchase of treasury shares(183,052)(183,052)

Disposal of treasury shares

1,733

1,733

0

0

1,505,522(181,319)

1,324,203

27,871,603(2,345,135)

35,551,243

Increase of treasury shares ofassociate company
Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period

5,251,400

4,773,375

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Valuationdifference on
available-for-salesecurities

Difference inforeign exchange

Remeasurementsof defined benefit

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

1,213,840

220,761

29,8691,464,471

329,137

36,020,649

1,213,840

220,761

29,8691,464,471

329,137

36,020,649

Changes of items during period
Dividends of surplus(630,646)

Profit attributable to owners ofparent company

2,136,169

Purchase of treasury shares(183,052)

Disposal of treasury shares

1,733

Increase of treasury shares ofassociate company
Other changes of shareholders’equity0(332,182)(33,857)(23,119)(389,159)(20,177)(409,336)

Total changes during current
period(332,182)(33,857)(23,119)(389,159)(20,177)

914,866

Balance at end of current period

881,657

186,904

6,749

1,075,312

308,960

36,935,515

9

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

For the fiscal year ended March 31, 2023
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Share premium

5,251,400

Retained earnings

4,773,375

Treasury shares

27,871,603

Total shareholders’ equity(2,345,135)(20,837)5,251,400

4,773,375

35,551,243(20,837)

27,850,765(2,345,135)

35,530,406

Changes of items during period
Dividends of surplus(499,552)(499,552)

Profit attributable to owners ofparent company

1,642,425

1,642,425

Purchase of treasury shares
Disposal of treasury shares

147,540

Increase of treasury shares ofassociate company
Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period

5,251,400(581,690)(581,690)

352,407499,947

72

72

147,540

1,142,873(229,211)

1,061,202

4,920,916

28,993,638(2,574,346)

36,591,608

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Valuationdifference on
available-for-salesecurities

Difference inforeign exchange

Remeasurementsof defined benefit

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

881,657

186,904

6,749

1,075,312

308,960

36,935,515(20,837)

881,657

186,904

6,749

1,075,312

308,960

36,914,678

Changes of items during period
Dividends of surplus(499,552)

Profit attributable to owners ofparent company

1,642,425

Purchase of treasury shares(581,690)

Disposal of treasury shares

499,947

Increase of treasury shares ofassociate company
Other changes of shareholders’equity72
153,479

12,252

66,746

232,478(7,013)

225,465

Total changes during current
period153,479

12,252

66,746

232,478(7,013)

1,286,667

Balance at end of current period

1,035,136

199,157

73,496

1,307,790

301,946

38,201,346

10

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year ended
March 31, 2022
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 share based
remuneration for directors
Increase (decrease) in provision for loss on construction
contracts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (income) loss of associates
Loss (gain) on sales of fixed assets
Loss on disposal of fixed assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable trade and contract assets
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
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of fixed assets
Proceeds from sales of fixed assets
Purchase of shares of unconsolidated subsidiaries
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
Proceeds from sales of treasury shares
Cash dividends paid
Other payments
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

11

For the fiscal year ended
March 31, 2023

2,808,948
678,050(365)
12,764
71,3792,138,215
607,415973
979
116,362

11,897

11,5107,505(4,382)(197,627)
12,709(15,944)(710,838)(27,527)―(280,030)
25,165(164,652)
15,832(17,238)(609,409)(165)
5(36,031)―(1,224,553)(1,732,632)(221,423)(66,270)(795,659)(54,081)244,216

1,516,235(73,872)
13,515
4,073
1,071,774
476,282(12,717)(562,458)
972,880(124,357)
155,251(781)
1,023,390
477,507(15,831)(835,087)
649,978(1,028)(165)
945,520(472,104)
33,677(5,000)60,927561,826(0)(187,350)
98,007(688,143)
1,780―
18,120(757,585)(8,007)(183,052)―(629,845)(2,828)(823,734)
24,809735,781
12,285,682
13,021,464

64,720(581,690)
499,947(499,668)(2,828)(519,519)
24,488(602,638)
13,021,464
12,418,826

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)
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 fiscal year ended March 31, 2023, the Company has changed the method applied to thestraight-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 fiscal year ended March 31, 2023, operating income, ordinary income, and profit before
income taxes and minority interests were each ¥164 million higher than when calculated using the previous method.

12

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(Segment information, etc.)(Segment information)
1. Description of reportable segments
The Group’s reportable segments represent units for which discrete financial information is available. Regularreviews are also carried out by the Board of Directors for the purpose of determining the allocation of management
resources and evaluating business performance.
The Group comprises segments by type of products and services, with three reportable segments, namely
Foundations, Sewerage-related, and Solar Power Generation and Real Estate.
In Foundations, concrete piles are manufactured and sold, and pile driving work is carried out. In the Seweragerelated segment, Hume pipes, segments and other products are manufactured and sold, and pipe and drain
rehabilitation projects are carried out. In Solar Power Generation and Real Estate, real estate is rented, managed anddeveloped, and equipment related to solar power and the environment is sold and maintenance is provided for it.
2. Method for calculating turnover, income (loss), assets, liabilities and other items by reportable segment
The accounting methods for reported business segments are generally the same as those stated in “Basicsignificant matters for the preparation of consolidated financial statements.” The reportable segment income is basedon operating income. Inter-segment turnover and transfers are based on current market prices.

13

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

3. Information on calculating turnover, income (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income
Segment assets
Other items
Depreciation (Note4)
Increase inproperty, plant andequipment andintangible assets(Note 4)

Amountrecorded ontheAdjustments
consolidated(Note 2)
financialstatements(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
EstateTotal

16,830,275

11,168,479

1,444,642

29,443,397

57,626

29,501,023―

29,501,023

7,226

―

37,68744,914―44,914(44,914)―

16,837,502
234,961
17,859,625

11,168,479
1,914,496
12,570,334

1,482,330
801,963
4,677,536

29,488,311
2,951,421
35,107,497

57,62645,536
24,58329,545,938
2,996,957
35,132,080(44,914)(1,547,006)
16,989,763

29,501,023
1,449,951
52,121,844

201,352

147,344

254,376

603,073―

603,073

125,210728,283

229,846

280,568―

510,415―

510,415

111,199

621,614

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. Adjustments are as follows:(1) An adjustment to turnover of ¥(44,914) thousand is the elimination of inter-segment transactions.
(2) An adjustment to segment income of ¥(1,547,006) thousand is corporate expenses not allocated toreportable segments. Corporate expenses are general and administrative expenses not attributable toreportable segments.
(3) An adjustment to segment assets of ¥16,989,763 thousand is corporate assets not allocated to reportablesegments, comprising investment securities of ¥15,462,325 thousand and assets associated withadministration divisions, etc. of ¥1,527,438 thousand.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥111,199
thousand accounts for capital expenditure for the head office building, etc.
3. Total segment income corresponds to operating income on the Consolidated Statements of Income.
4. Depreciation and increase in property, plant and equipment and intangible assets include long-term prepaid
expenses and the related amortization.

14

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

For the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income
Segment assets
Other items
Depreciation (Note4)
Increase inproperty, plant andequipment andintangible assets(Note 4)

Amountrecorded ontheAdjustments
consolidated(Note 2)
financialstatements(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
EstateTotal

19,918,805

10,464,095

1,439,784

31,822,685

53,88431,876,570―

31,876,570

6,509

―

39,20545,715―45,715(45,715)―

19,925,315
322,882
20,563,671

10,464,095
1,680,495
12,379,090

1,478,989
807,495
4,376,344

31,868,400
2,810,873
37,319,106

53,884
41,27320,93431,922,285
2,852,147
37,340,040(45,715)(1,615,936)
17,639,676

31,876,570
1,236,210
54,979,717

171,729

123,447

241,136536,313―536,313120,283

656,597

317,902397,672―

715,574―

715,574

89,656805,231

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. Adjustments are as follows:(1) An adjustment to turnover of ¥(45,715) thousand is the elimination of inter-segment transactions.
(2) An adjustment to segment income of ¥(1,615,936) thousand is corporate expenses not allocated toreportable segments. Corporate expenses are general and administrative expenses not attributable toreportable segments.
(3) An adjustment to segment assets of ¥17,639,676 thousand is corporate assets not allocated to reportablesegments, comprising investment securities of ¥16,136,631 thousand and assets associated withadministration divisions, etc. of ¥1,503,045 thousand.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥89,656 thousandaccounts for capital expenditure for the head office building, etc.
3. Total segment income corresponds to operating income on the Consolidated Statements of Income.
4. Depreciation and increase in property, plant and equipment and intangible assets include long-term prepaid
expenses and the related amortization.

15

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

(Per share information)
For the fiscal year ended
March 31, 2022

For the fiscal year ended
March 31, 2023

Net assets per share¥1,514.78¥1,575.56

Earnings per share¥87.95¥68.12(Notes) 1. Diluted earnings per share is not presented due to the absence of residual shares.
2. The Company has introduced a Board Benefit Trust (BBT) and Employee Stock Ownership Plan (JESOP). In the calculation of net assets per share and earnings per share, the Company’s shares held by
the trust are included in the treasury shares to be deducted in the calculation of the total number of issued
shares at the end of the period and the average number of shares during the period.
Number of treasury shares at the end of the period deducted in the calculation of net assets per share
Consolidated fiscal year ended March 31, 2022: 123,200 shares; Consolidated fiscal year ended March
31, 2023: 859,500 shares
Average number of treasury shares during the period deducted in the calculation of earnings per share
Consolidated fiscal year ended March 31, 2022: 123,750 shares; Consolidated fiscal year ended March
31, 2023: 184,558 shares

3. Basis for calculating earnings per share is as follows.
For the fiscal year ended
Items
March 31, 2022
Profit attributable to owners of parent company
2,136,169(Thousand yen)Amount not attributable to common shareholders―(Thousand yen)
Profit attributable to owners of parent company
2,136,169
relating to common stocks (Thousand yen)
Average number of common stocks during the24,287,417
period (Shares)

For the fiscal year ended
March 31, 2023
1,642,425―
1,642,425
24,110,733

4. Basis for calculating net assets per share is as follows.
Items

As of March 31, 2022

As of March 31, 2023

36,935,515

38,201,346

308,960

301,946[308,960][301,946]

36,626,555

37,899,399

24,179,389

24,054,502

Total net assets (Thousand yen)Amount to be subtracted from the total net assets(Thousand yen)[Non-controlling interest of the above (Thousandyen)]
Net assets at year-end relating to common stocks(Thousand yen)
Number of common stocks at year-end used for
calculating earnings per share (Shares)(Significant subsequent events)
No relevant items.

16