Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
[Japanese GAAP]May 13, 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 Annual General Meeting of Shareholders: June 29, 2022
Scheduled date of commencing dividend payments: June 30, 2022
Scheduled date of filing annual securities report: June 29, 2022
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, 2022 (April 1, 2021 to March 31, 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%

Fiscal year ended
29,501
1,449 (16.2)
2,526
(3.1)
(6.8)
March 31, 2022
Fiscal year ended
30,446 （13.1)
1,730
2,711
2.6
(4.5)
March 31, 2021
(Note) Comprehensive income: Fiscal year ended March 31, 2022: ¥1,734 million [(48.2)%]
Fiscal year ended March 31, 2021: ¥3,351 million [94.5%]
Earnings per
share

Diluted earnings
per share

Yen

Fiscal year ended
87.95
March 31, 2022
Fiscal year ended
87.17
March 31, 2021
(Reference) Share of income (loss) of associates:(2) Consolidated Financial Position
Total assets
Million yen

Million yen

%

2,136

0.3

2,129

1.2

Ordinary
incometo total assets

Return on
equityOperatingincome toturnover

Yen

%

%

%

―

5.9

4.9

4.9

―

6.2

5.5

5.7

Fiscal year ended March 31, 2022: ¥710 million
Fiscal year ended March 31, 2021: ¥674 million
Net assets
Million yen

As of March 31,
52,12136,9352022
As of March 31,
50,41836,0202021(Reference) Equity: As of March 31, 2022: ¥36,626 million
As of March 31, 2021: ¥35,691 million

Equity ratio

Net assets per share
%

Yen

70.3

1,514.78

70.8

1,461.11

(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, 2022
Fiscal year ended
March 31, 2021

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

972

561

(823)

13,021

3,598(1,162)(473)

12,285

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Yen

Yen

Yen

Yen

Total

Total
dividends

Payoutratio(consolidated)

Yen Million yen

Dividends
to netassets(consolidated)%

Fiscal year ended
―
―
―
25.00
25.00
633
28.7
March 31, 2021
Fiscal year ended
―
―
―
20.00
20.00
502
22.7
March 31, 2022
Fiscal year ending
―
―
―
21.00
21.00
28.2
March 31, 2023
(Forecast)(Note) Breakdown of dividends for the fiscal year ended March 31, 2021: Ordinary dividend: 20.00 yen

%

1.8
1.3

Commemorative dividend: 5.00 yen
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 toEarnings
TurnoverOperating income
Ordinary income
owners of parent
per sharecompany
Million yen

First half
Full year

15,00032,000% Million yen

6.2
8.5

500
1,600

%

Million yen%

Million yen%

Yen(22.4)
10.3

1,200
2,500

(14.1)
(1.1)

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) 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(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, 2022: 29,347,500 shares
As of March 31, 2021: 29,347,500 shares

2) Total number of treasury shares at the end of the period
As of March 31, 2022: 5,168,111shares
As of March 31, 2021: 4,919,851 shares
3) Average number of shares during the period
Fiscal year ended March 31, 2022: 24,287,417 sharesFiscal year ended March 31, 2021: 24,430,907 shares* 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, 2022

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 ........................................................................... 13(Notes on going concern assumption) ........................................................................................... 13(Changes in accounting policies) .................................................................................................... 13(Segment information, etc.) ........................................................................................................... 14(Per share information) ................................................................................................................. 17(Significant subsequent events) ..................................................................................................... 17

1

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2022, the Japanese economy continued to make a gradual recovery
due to the effect of coronavirus measures and improvements in overseas economies, even as the coronavirus
continued to spread in waves and limits on economic activity were alternately imposed and eased. At the sametime, the global supply chain experienced turmoil due to soaring material prices and material shortages, and at
the end of the fiscal year, concerns of an economic downturn on a global scale were provoked by changes ininternational political conditions. These concerns were exacerbated by dramatic fluctuations in the foreignexchange market, leaving the outlook uncertain.
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. However, althoughprivate capital investment is recovering, conditions remain harsh overall as a result of intense competition overorders and a steep rise in key material prices, among other factors.
In these conditions, in this first year of the medium-term management plan, the 21-23 Plan, the Group pursued
business structure reforms and research and development anticipating changes in the business environment, withthe aim of further stabilizing the management foundation and achieving sustainable growth.
In the foundations business, the Group invested in equipment related to the manufacture of nodular piles as ameasure to expand its business fields, and also improved the efficiency of its quality management using ICT
construction management, and worked on introducing and expanding the functionality of the “Pile-ViMSys”
next-generation DX construction management system, aimed at reducing construction costs. In the seweragerelated business, the Group expanded its lineup of rainwater management products to address climate change andreinforced its ability to propose designs, and also worked to further expand its adoption of aseismic construction
methods for sewerage networks. As a medium- and long-term growth strategy, the Group sought to address theaging of infrastructure that has been intensively maintained since the high-growth period and the decline in thenumber of construction engineers by strengthening and streamlining its system for proposing designs for pre-castproducts. Moreover, as the global trend toward decarbonization accelerates, the Group pursued its research anddevelopment focused on eco-friendly materials that curb CO2 emissions and parts for wind power towers. In
addition, the Group set up a new company with the aim of creating new businesses in infrastructure aging,decarbonization, and renewable energy.
As a result, turnover amounted to ¥29,501 million (down 3.1% year on year), operating income was ¥1,449
million (down 16.2% year on year), ordinary income was ¥2,526 million (down 6.8% year on year), and profit
attributable to owners of parent company was ¥2,136 million (up 0.3% year on year).
An overview of the business segments is provided below.
1) Foundations business
Nationwide demand for concrete pile products was about the same as in the previous year, but the orders
environment remains harsh, and although the Group endeavored to lower costs to improve its earning capacity,
the rise in raw material prices had a major impact. As a result, turnover totaled ¥16,830 million (down 5.5%
year on year) and operating income was ¥234 million (down 65.6%). However, the “Pile-ViMSys” nextgeneration DX construction management system that the Group developed was highly acclaimed. This is oneof the ways in which the Group is beginning to see the effects of its efforts to strengthen its design marketing
activities utilizing its key strengths, and the Group will continue to strengthen individual management withthorough construction management and reductions in manufacturing costs and other measures to improveearning capacity.
2) Sewerage-related businessAs climate disasters caused by climate change grow more intense and frequent, large-scale earthquakes
become a pressing risk, and infrastructure ages, the Group has focused on proposing designs for high valueadded products geared toward disaster prevention, disaster mitigation and national resilience measures, and2

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

marketing pre-cast transition proposals. As a result, turnover totaled ¥11,168 million (up 0.5% year on year)
and operating income was ¥1,914 million (up 15.0%). The Group will continue to work to improve earning
capacity with design proposals for high value-added products and pre-cast products, the development of highvalue-added products, and a stronger sales system in anticipation of a market related to disaster prevention
and mitigation and national resilience.
3) Solar Power Generation and Real Estate business
Real estate rental revenue was solid, and in the solar power generation area, both electric power generationand power selling was stable for NH Tohoku Solar Power Generation and NH Okayama Solar Power
Generation. Turnover amounted to ¥1,444 million (down 1.2% year on year) and operating income was ¥801
million (up 0.1%).
4) Others
In Others, turnover totaled ¥57 million (up 1.3% year on year) and operating income was ¥45 million (up1.5%).
(Purchase of treasury shares)
At the Board of Directors’ Meeting held on April 27, 2021, 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 ¥182 million in treasury shares was purchased.
(Reduction in cross-shareholdings)
The Company holds shares in the companies of its business partners (hereinafter, “cross-shareholdings”)
with the aim of maintaining and strengthening these business relationships. The rationale behind the purposeand effect of holding these shares is examined comprehensively by the Board of Directors. In the consolidated
fiscal year under review, the Group reviewed the purpose of these holdings and their investment efficiency,
and reduced them by approximately ¥1 billion. The Group will continue to examine its cross-shareholdings
with the aim of bringing them to 10% or less of its consolidated net assets.

(2) Overview of Financial Position in the Fiscal Year under Review
Total assets as of March 31, 2022, had increased ¥1,703 million from the end of the previous consolidated
fiscal year, to ¥52,121 million. This was mainly because, while investment securities decreased ¥738 million
under non-current assets, notes and accounts receivable – trade and contract increased ¥1,513 million undercurrent assets and cash and deposits increased ¥736 million under current assets.
In addition, under liabilities, total liabilities increased ¥788 million from the end of the previous consolidated
fiscal year, to ¥15,186 million. This was mainly because of a ¥404 million increase in notes and accounts payable– trade and a ¥175 million increase in income taxes payable under current liabilities.
Under net assets, total net assets increased ¥914 million from the end of the previous consolidated fiscal
year, to ¥36,935 million. This was mainly because, under retained earnings, while profit attributable to ownersof parent company increased ¥2,136 million, there was a decrease of ¥630 million for cash dividends paid, andvaluation difference on available-for-sale securities decreased ¥332 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, 2022, increased ¥735 million from the end of the previous
consolidated fiscal year to ¥13,021 million.
(Cash flows from operating activities)
Funds provided by operating activities during the consolidated fiscal year ended March 31, 2022, decreased

3

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

¥2,625 million year on year to ¥972 million. This was mainly because of a ¥2,808 million increase in profit
before income taxes and minority interests, a ¥1,224 million increase in notes and accounts receivable – trade,¥710 million in share of income of associates, ¥678 million in depreciation, and ¥562 million in income taxes
paid.
(Cash flows from investing activities)
Funds provided by investing activities during the consolidated fiscal year ended March 31, 2022, totaled ¥561
million (¥1,162 million used in the previous fiscal year). This was mainly because of ¥945 million in proceedsfrom sales of investment securities and ¥472 million in purchase of fixed assets.
(Cash flows from financing activities)
Funds used in financing activities during the consolidated fiscal year ended March 31, 2022, increased ¥350
million year on year to ¥823 million. This was mainly because of ¥629 million in cash dividends paid and ¥183
million in purchase of treasury shares.

(4) Future Outlook
We expect the Japanese economy to recover in this new era living alongside the coronavirus, but we cannot
dispel concerns about the emergence of new variants. In addition, skyrocketing raw material prices, the impact
of supply chain turmoil, concerns about an economic downturn on a global scale caused by changes ininternational political conditions, and higher costs due to yen depreciation, among other factors, mean that we
expect conditions to remain uncertain in the near term.
However, in the medium to long term, measures to address social issues such as the greater intensity andfrequency of climate disasters caused by climate change, measures to address the risk of imminent large-scale
earthquakes, and measures to address the aging of infrastructure intensively maintained since the high-growth
period, as well as the response to a decarbonized society and a cyclical society as climate change worsens, are allurgent. In addition, the use of pre-cast products is an essential part of efforts to address the shortage of
construction engineers.
Looking ahead to this kind of change in the business environment, under the 21-23 Plan, the Group will aim
to further stabilize its management foundation and achieve sustainable growth, as well as pursue research anddevelopment to create high value-added business, centered around the reinforcement of human resource capacity.
The Group will also pursue structural reform in the business segments it has built up and expand its businessareas.
With regard to our financial results for the consolidated fiscal year ending March 31, 2023, the Group expects
a turnover of ¥32,000 million, operating income of ¥1,600 million, ordinary income of ¥2,500 million, and profit
attributable to owners of parent of ¥1,800 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, 2022

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
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, 2022

12,328,246
8,770,485

13,065,056――

10,284,336

2,564,269
509,182
206,376(11,769)
24,366,791

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

13,661,052(9,526,580)
4,134,471
13,768,907(12,282,949)
1,485,958
3,610,229
42,293754,360(699,314)
55,046
9,327,999

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

188,238
188,238

176,286
176,286

16,200,362
9,983
357,748(32,718)
16,535,375
26,051,613
50,418,405

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

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(Thousand yen)
As of March 31, 2021
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, 2022

8,113,087
928,055
327,912
172,900―
1,065,399
10,607,354

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

683,777
16,50014,9072,517,770
547,902
9,542
3,790,401
14,397,755

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

5,251,400
4,773,375
26,366,080(2,163,815)
34,227,040

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

1,213,840
220,761
29,8691,464,471
329,137
36,020,649
50,418,405

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

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year ended
March 31, 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
Technical support fee
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Real estate development maintenance and management
expenses
Donations
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sale of investment securities
State subsidy
Total extraordinary income
Extraordinary losses
Loss on sale of fixed assets
Loss on disposal of fixed assets
Loss on valuation of investment securities
Structure reform expenses
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, 2022

30,446,551
24,941,434
5,505,117
3,775,051
1,730,065

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

870
166,126
674,720
60,18815,164
102,096
1,019,168

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

12,895

12,709

5,682

4,969

5,303
13,69437,576
2,711,657

4,238
7,547
29,4652,526,557

―
―
1,440
1,440

27,527280,030―
307,557940
017,18139,45357,5742,655,522
564,606(27,287)
537,319
2,118,202(11,506)
2,129,709――
25,165―25,1652,808,948
735,775(50,857)
684,917
2,124,031(12,138)
2,136,169

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year ended
March 31, 2021

For the fiscal year ended
March 31, 2022

2,118,202

2,124,031

927,7703,702
249,126
52,226
1,232,825
3,351,028(313,804)(32,577)(12,837)(29,940)(389,159)
1,734,871

3,362,534

1,747,009(11,506)(12,138)

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, 2022

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2021
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodShare premium

5,251,400

Retained earnings

4,688,447

Treasury shares

24,715,817

Total shareholders’ equity(2,073,120)

32,582,545

Changes of items during period
Dividends of surplus(479,446)(479,446)

Profit attributable to owners ofparent company

2,129,709

2,129,709

Purchase of treasury shares
Disposal of treasury shares

84,927

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

5,251,400(196,678)(196,678)

107,523

192,451(1,539)(1,539)84,9271,650,262(90,694)

1,644,495

4,773,375

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

34,227,040

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Difference inforeign exchange

Remeasurementsof defined benefit

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

240,023

227,280(235,658)

231,646

345,503

33,159,694

Changes of items during period
Dividends of surplus(479,446)

Profit attributable to owners ofparent company

2,129,709

Purchase of treasury shares(196,678)

Disposal of treasury shares

192,451

Increase of treasury shares ofassociate company(1,539)Other changes of shareholders’equity973,816(6,518)265,527

1,232,825(16,366)

1,216,459

Total changes during current
period973,816(6,518)265,527

1,232,825(16,366)

2,860,955

Balance at end of current period

1,213,840

220,761

29,8691,464,471

329,137

36,020,649

9

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

For the fiscal year ended March 31, 2022
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodShare premium

5,251,400

Retained earnings

4,773,375

Treasury shares

26,366,080

Total shareholders’ equity(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
periodValuationdifference 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

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

10

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year ended
March 31, 2021
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 directors’
retirement benefits
Increase (decrease) in provision for environmental
measures
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
State subsidy
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

11

For the fiscal year ended
March 31, 2022

2,655,522
634,248(72,941)(4,005)133,183

2,808,948
678,050(365)
12,764
71,37916,50011,897(2,310)―(1,514)

―

―

7,505

(166,997)
12,895
7,154(674,720)
940
0(1,440)―17,181(197,627)
12,709(15,944)(710,838)(27,527)――(280,030)
25,165

3,092,463

1,224,553(131,764)(37,331)(221,423)(66,270)(2,044,242)(244,216)

160,218
110,249(7,858)3,695,428
411,852(12,891)(495,903)
3,598,486(73,872)
13,515
4,073
1,071,774
476,282(12,717)(562,458)
972,880

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(Thousand yen)
For the fiscal year ended
March 31, 2021
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
Proceeds from state subsidy
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

12

For the fiscal year ended
March 31, 2022―
(418,839)
1(706,994)
1,647
1,440
―
(39,749)(1,162,494)(1,028)(165)
945,520(472,104)
33,677―(5,000)60,927561,826

14,140(196,678)
192,451(479,126)(4,249)(473,463)(10,813)
1,951,714
10,333,968
12,285,682(8,007)(183,052)―(629,845)(2,828)(823,734)
24,809735,781
12,285,682
13,021,464

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)
No relevant items.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standards for Revenue Recognition” (Accounting Standards
Board of Japan (ASBJ) Statement No. 29, March 31, 2020; hereinafter the “Revenue Recognition AccountingStandard”), from the start of the consolidated fiscal year under review. Under the Revenue Recognition
Accounting Standard, the Company recognizes revenue at the time when control over the promised goods orservices are transferred to the customer, in an amount equal to the consideration expected to be received for thesaid goods or services. Previously, the percentage-of-completion method was used for work contracts for which
the outcome of a portion of a work was deemed certain, and the completed-contract method was used for work
contracts that did not satisfy this requirement. From this fiscal year onward, revenue is recognized over acertain period of time as performance obligations are satisfied. Moreover, in cases where the duration of a work
is extremely short, revenue is recognized at the time when a work that fully satisfies the performanceobligations has been completed. The input method (proportion of actual cost to estimated total cost) is used toestimate the rate of progress in fulfilling performance obligations.
For transactions where the Company’s role in the provision of products to the customer is that of an agent,
the Company previously recognized the gross amount of the consideration received from the customer asrevenue. The Company now recognizes as revenue the net amount received from the customer after deducting
the amount paid to the product’s supplier.
In applying the Revenue Recognition Accounting Standard, etc., the Company has followed the transitional
treatment stipulated under the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard,
adjusting retained earnings at the start of the consolidated fiscal year under review to account for the
cumulative effect of retrospective application of the new accounting policy prior to that time, and applying the
new accounting policy from the adjusted balance. The Company applies the procedure provided for in
Paragraph 86 of the Revenue Recognition Accounting Standard and does not retroactively apply the new
accounting policy to contracts under which almost all revenue had been recognized before the beginning of theconsolidated fiscal year under review in accordance with the procedure before the application of the new
accounting policy. In addition, contracts that were modified prior to the beginning of the consolidated fiscal
year under review are accounted for under contract terms that reflect all of the contract modifications with theapplication of the method provided in proviso (1) of Paragraph 86 of the Revenue Recognition AccountingStandard, and the cumulative effect is added to or subtracted from retained earnings at the beginning of theconsolidated fiscal year under review.
In addition, notes and accounts receivable – trade, which was presented in current assets on the consolidatedbalance sheets for the previous fiscal year, is included in notes and accounts receivable – trade and contract
assets for the consolidated fiscal year under review. In accordance with the transitional treatment prescribedunder Paragraph 89-2 of the Revenue Recognition Accounting Standard, the Company has not reclassified
items for the previous fiscal year based on the new presentation method.
As a result, on the Consolidated Statements of Income for the consolidated fiscal year under review,
turnover and cost of sales are each lower by 510 million yen compared to the period prior to the application of
the Revenue Recognition Accounting Standard. There was no effect on the amount of retained earnings at thestart of the consolidated fiscal year under review.

13

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July4, 2019; hereinafter the “Fair Value Measurement Accounting Standard”), etc. from the start of the consolidated
fiscal year under review. The Company has applied the new accounting policy prospectively from the start of theconsolidated fiscal year under review, in accordance with the transitional treatment prescribed under Paragraph 19of the Fair Value Measurement Accounting Standard and Paragraph 44-2 of “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no effect on the consolidated financial statements.
(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.
As described in Changes in accounting policies, the Company has applied the Revenue Recognition AccountingStandard, etc. from the beginning of the consolidated financial statements for the consolidated fiscal year underreview. Pursuant to the change in accounting treatment for revenue recognition, the Company has likewise changed
the methods used to calculate income or loss for its business segments.
As a result of this change, for the consolidated fiscal year under review, the turnover of the foundations businessand the sewerage-related business was ¥26 million and ¥484 million lower, respectively, than when calculated using
the previous method.

14

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

3. Information on calculating turnover, income (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(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

17,816,470

11,111,410

1,461,809

30,389,690

56,86030,446,551―

30,446,551

7,489

―

386,739

46,162―

46,162(46,162)―

17,823,960
682,276
16,812,294

11,111,410
1,664,593
11,152,459

1,500,482
801,399
4,903,977

30,435,853
3,148,269
32,868,731

56,86044,865
21,97530,492,713
3,193,135
32,890,707(46,162)(1,463,070)
17,527,697

30,446,551
1,730,065
50,418,405

239,786

136,411

254,887

631,085108

631,193

50,355681,549

341,366

203,513336,382

881,262238

881,500

44,796926,296

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 ¥(46,162) thousand is the elimination of inter-segment transactions.
(2) An adjustment to segment income of ¥(1,463,070) 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 ¥17,527,697 thousand is corporate assets not allocated to reportablesegments, comprising investment securities of ¥16,200,362 thousand and assets associated withadministration divisions, etc. of ¥1,327,334 thousand.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥44,796 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, 2022

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.

16

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2022

(Per share information)
For the fiscal year ended
March 31, 2021

For the fiscal year ended
March 31, 2022

Net assets per share¥1,461.11¥1,514.78

Earnings per share¥87.17¥87.95(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). In the calculation of net assets per share andearnings 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, 2021: 125,400 shares; Consolidated fiscal year ended March
31, 2022: 123,200 shares
Average number of treasury shares during the period deducted in the calculation of earnings per share
Consolidated fiscal year ended March 31, 2021: 83,600 shares; Consolidated fiscal year ended March
31, 2022: 123,750 shares

3. Basis for calculating earnings per share is as follows.
For the fiscal year ended
Items
March 31, 2021
Profit attributable to owners of parent company
2,129,709(Thousand yen)Amount not attributable to common shareholders―(Thousand yen)
Profit attributable to owners of parent company
2,129,709
relating to common stocks (Thousand yen)
Average number of common stocks during the24,430,907
period (Shares)

For the fiscal year ended
March 31, 2022
2,136,169―
2,136,169
24,287,417

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

As of March 31, 2021

As of March 31, 2022

36,020,649

36,935,515

329,137

308,960[329,137][308,960]

35,691,512

36,626,555

24,427,649

24,179,389

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.

17