Consolidated Quarterly Financial Results
for the Three Months Ended June 30, 2019
[Japanese GAAP]
August 8, 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: August 8, 2019
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, 2019 (April 1, 2019 to June 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%

Three months ended
7,687(27.9)
435
41.0
959
31.5
June 30, 2019
Three months ended
10,667
26.2
309
9.6
729
49.7
June 30, 2018
(Note) Comprehensive income: Three months ended June 30, 2019: ¥668 million [-0.3%]
Three months ended June 30, 2018: ¥670 million [20.8%]

Three months ended
June 30, 2019
Three months ended
June 30, 2018

Earnings per share

Diluted earnings per
share

Yen

Yen

31.51

―

28.14

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Equity ratio

Million yen%

As of June 30, 2019
48,40832,219As of March 31,
49,34532,0682019(Reference) Equity: As of June 30, 2019: ¥31,984 million
As of March 31, 2019: ¥31,835 million

66.1
64.5

Million yen

%

775

10.8

700

89.4

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
―

―

―

18.00

18.00

―

―

18.00

18.00

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: No
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%

Yen

15,500 (21.7)
600 (14.5)
1,050 (27.2)
First half
39,000
2.6
1,700
1.8
2,400 (7.0)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen%

Million yen%

Million yen

800
1,800

(37.0)(12.4)

32.44
72.98

* 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 June 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 June 30, 2019: 4,765,383 shares
As of March 31, 2019: 4,683,183 shares
3) Average number of shares during the period
Three months ended June 30, 2019: 24,627,417 shares
Three months ended June 30, 2018: 24,887,524 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
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 2 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 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 .......... 2
2. Consolidated Quarterly Financial Statements and Important Notes................................................................. 3(1) Consolidated Quarterly Balance Sheets ..................................................................................................... 3(2) Consolidated Quarterly Statements of Income and Comprehensive Income ............................................. 5(3) Notes to the Consolidated Quarterly Financial Statements ........................................................................ 7(Notes on going concern assumption) ........................................................................................................ 7(Notes in the case of significant changes in shareholders’ equity) ............................................................. 7(Changes in accounting policies) ............................................................................................................... 7(Segment information, etc.) ....................................................................................................................... 7

1

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

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months ended June 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 three months ended June 30, 2019, orders received totaled ¥7,673 million (down 25.4% year on year),and turnover amounted to ¥7,687 million (down 27.9% year on year).
As for profit and loss, operating income was ¥435 million (up 41.0% year on year); ordinary income was¥959 million (up 31.5% year on year), mainly because of equity in earnings of affiliates and dividend income;and profit attributable to owners of parent was ¥775 million (up 10.8% year on year).

(2) Explanation of Financial Position
Total assets as of June 30, 2019, decreased ¥937 million from the end of the previous consolidated fiscal
year, reaching ¥48,408 million. This was mainly because, under current assets, notes and accounts receivable –trade decreased ¥1,615 million, offsetting the ¥647 million increase in construction in progress included in“Other” under non-current assets.
In addition, under liabilities, total liabilities decreased ¥1,088 million from the end of the previous
consolidated fiscal year to ¥16,188 million. This was mainly because, under current liabilities, notes andaccounts payable – trade decreased ¥1,648 million.
Under net assets, total net assets increased ¥151 million from the end of the previous consolidated fiscal
year, to ¥32,219 million. This was mainly because, under retained earnings, while profit attributable to ownersof parent company increased ¥775 million, there was a decrease of ¥458 million for cash dividends paid, andvaluation difference on available-for-sale securities decreased ¥102 million.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the results forecasts pertaining to the fiscal year ending March 31, 2020, there has been nochange to the first-half and full-year results forecasts published in the “Consolidated Financial Results for the
Fiscal Year Ended March 31, 2019 [Japanese GAAP],” dated May 14, 2019.

2

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

3

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

10,526,038
10,890,641
2,421,079
531,567
325,340(12,389)
24,682,277

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

2,809,693
3,694,863
3,305,633
9,810,190
93,875

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

13,562,613
391,528(131,973)
13,822,169
23,726,235
48,408,512

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

9,016,112
1,234,841
105,295―
2,135,344
12,491,593

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

17,217
8,657
2,673,504
997,676
3,697,055
16,188,649

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

4

As of June 30, 2019

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

5,251,400
4,736,524
23,444,407(1,969,534)
31,462,797

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

562,860
216,536(257,492)
521,904
235,161
32,219,863
48,408,512

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

5

For the three months ended
June 30, 201910,667,434
9,220,351
1,447,083
1,137,932
309,150

7,687,762
6,241,011
1,446,751
1,010,987
435,764612
55,092346,929―
36,986439,620509
57,968424,915
13,01439,001
535,410

6,252
8,842
4,435
19,529729,241

7,415
―
4,509
11,925959,248

138,7181,440
140,158
869,399
115,517
52,392
167,910
701,4891,217
700,272

―
1,440
1,440
960,688
105,925
76,809182,735
777,953
2,025
775,927

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

Consolidated Quarterly Statements of Comprehensive Income
Three Months Ended June 30(Thousand yen)
For the three months ended
June 30, 2018

For the three months ended
June 30, 2019

701,489

777,953(64,461)
18,21017,128(1,979)(31,100)
670,388(85,016)(16,671)
11,239(18,996)(109,445)
668,507669,171

666,481

1,217

2,025

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

6

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2019(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)(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 three months ended June, 2018 (April 1, 2018 to June 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 ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate7,877,972

2,399,090

349,222

10,626,286

41,148

10,667,434―

10,667,434

860

―

9,695

10,556―

10,556(10,556)―

7,878,833
328,727

2,399,090
222,617358,918
190,803

10,636,842
742,148

41,1489,519

10,677,991
751,668(10,556)(442,517)

10,667,434
309,150

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 ¥(442,517) 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.

7

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

II. For the three months ended June 30, 2019 (April 1, 2019 to June 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 ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate5,059,514

2,239,119352,589

7,651,223

36,5397,687,762―

7,687,762

1,607

―

9,884

11,492―

11,492(11,492)―

5,061,121
245,5122,239,119
338,195

362,474
217,259

7,662,715
800,967

36,5396,745

7,699,255
807,712(11,492)(371,948)

7,687,762
435,764

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 ¥(371,948) 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 each segment.
(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 tomore accurately assess management results in each segment.
The segment information for the first quarter of the previous consolidated fiscal year is disclosed based on themethod adopted with this change.

8