Consolidated Quarterly Financial Results
for the Six Months Ended September 30, 2016
[Japanese GAAP]
November 11, 2016
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: http://www.nipponhume.co.jp
Representative: Minoru Okawauchi, President and Representative Director
Contact: Takamasa Ishii, Executive Officer and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of filing quarterly securities report: November 11, 2016
Scheduled date of commencing dividend payments: ―Preparation of supplementary briefing material on quarterly financial results: No
Holding of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended September 30, 2016 (April 1, 2016 to September 30,
2016)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toTurnoverOperating income
Ordinary income
owners of parent
company
Million yen%

Million yen%

Million yen%

Million yen

Six months ended
14,866(12.0)
586 (44.5)
826 (46.1)
585
September 30, 2016
Six months ended
16,884
(2.2)
1,057
11.7
1,535 (39.3)
1,136
September 30, 2015
(Note) Comprehensive income: Six months ended September 30, 2016: ¥891 million [(14.8)%]
Six months ended September 30, 2015: ¥1,046 million [(50.8)%]

Six months ended
September 30, 2016
Six months ended
September 30, 2015

Earnings per share

Diluted earnings per
share

Yen

Yen

23.01

―

43.76

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of September 30,
42,77628,5162016
As of March 31,
43,85728,0732016(Reference) Equity: As of September 30, 2016: ¥28,320 million
As of March 31, 2016: ¥27,884 million

Equity ratio
%

66.2
63.6

%

(48.5)(50.2)

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―

16.00

16.00

―

16.00

16.00

Fiscal year ended March 31, 2016
Fiscal year ending March 31, 2017
Fiscal year ending March 31, 2017
(Forecast)

Total(Note) Revision to the dividend forecast announced most recently: No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to March 31,
2017)(% indicates changes from the previous corresponding period.)
Profit attributable
Earnings
TurnoverOperating income Ordinary income
to owners ofper share
parent company
Million yen%

Million yen%

Million yen%

40,000 18.5
2,300 21.4
2,700 16.1
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen

%

Yen

2,000

11.0

78.59

* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No
Newly included: ― (Company name)
Excluded: ― (Company name)(2) Application of accounting procedures specific to preparation of consolidated quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(Note) For details, please refer to “2. Matters Concerning Summary Information (Notes) (3) Changes in
Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement” on page 4 of theattachment.
(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2016: 29,347,500 shares
As of March 31, 2016: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of September 30, 2016: 3,944,546 shares
As of March 31, 2016: 3,898,940 shares
3) Average number of shares during the period
Six months ended September 30, 2016: 25,440,899 shares
Six months ended September 30, 2015: 25,980,741 shares

* Presentation regarding the implementation status of the quarterly review procedures
These quarterly financial results are outside the scope of quarterly review procedures under the Financial
Instruments and Exchange Act. At the time of disclosure of these quarterly financial results, review procedures forthe consolidated quarterly financial statements have been completed.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecast and other forward-looking statements contained in these materials are based on
information available to the Company and on certain assumptions deemed to be reasonable as of the date of
publication of this document. They are not intended as a commitment by the Company that these results will beachieved. Actual results may differ considerably as a result of numerous factors. For the assumptions used in thefinancial results forecast and precautionary notes on its use, please refer to “1. Qualitative Information on Quarterly
Financial Results for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other
Forward-looking Information” on page 3 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review .................................. 2(1) Explanation of Operating Results ............................................................................................................... 2(2) Explanation of Financial Position .............................................................................................................. 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .......... 3
2. Matters Concerning Summary Information (Notes) ....................................................................................... 4(1) Changes in Significant Subsidiaries during the Period under Review ....................................................... 4(2) Application of Accounting Procedures Specific to Preparation of Consolidated Quarterly Financial
Statements .................................................................................................................................................. 4(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement ...... 4
3. Consolidated Quarterly Financial Statements ................................................................................................ 5(1) Consolidated Quarterly Balance Sheets ..................................................................................................... 5(2) Consolidated Quarterly Statements of Income and Comprehensive Income ............................................. 7
Consolidated Quarterly Statements of Income ........................................................................................... 7
Consolidated Quarterly Statements of Comprehensive Income ................................................................. 8(3) Consolidated Quarterly Statements of Cash Flows ...................................................................................... 9(4) Notes to the Consolidated Quarterly Financial Statements ...................................................................... 10(Notes on going concern assumption) ...................................................................................................... 10(Notes in the case of significant changes in shareholders’ equity) ........................................................... 10(Segment information) ............................................................................................................................. 101

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
The Japanese economy continued on a moderate recovery track during the six months ended September 30,
2016, amid improvement in employment and other areas. The outlook remained uncertain, however, due to risk
factors including a downswing in China and other emerging nations.
Under these circumstances, the Group is working diligently toward stable profits and sustainable growth inline with the basic policy of the medium-term management plan, “Evolution All Japan,” that covers the three
years from fiscal 2015.
In the concrete products industry where the Company operates, demand for both Hume pipes and pile
products weakened compared to the same period of the previous fiscal year.
Orders received for products and construction, etc. for the six months ended September 30, 2016, were¥13,491 million (a year-on-year decline of 17.5%). Turnover including revenue from products, construction andreal estate amounted to ¥14,866 million (down 12.0% year on year).
Looking at profit and loss, operating income was ¥586 million (a year-on-year decline of 44.5%). Ordinary
income was ¥826 million (a year-on-year drop of 46.1%), mainly due to the effect of exchange rates. Profit
attributable to owners of parent company was ¥585 million (a year-on-year decrease of 48.5%).
Segment results are indicated as follows.
1) Concrete Products
Orders received were ¥7,438 million (down 24.9% year on year). Turnover was ¥7,831 million (down
24.2% year on year), mainly due to a decline in Hume pipes and precast products owing to a slump in demand,
as well as intensified price competition in pile products. Segment income was ¥190 million (down 61.0% year
on year).
The total sales composition ratio was 52.7%.
2) Construction
Orders received were ¥5,954 million (down 6.3% year on year) and turnover was ¥6,249 million (up 8.5%
year on year). Segment income amounted to ¥125 million (down 52.8% year on year), mainly due to intensified
price competition in pile construction.
The total sales composition ratio was 42.0%.
3) Real Estate Development
Turnover was almost on the same level as the previous year at ¥481 million (down 1.3% year on year).
Segment income amounted to ¥189 million (down 11.9 % year on year), due mainly to renewal construction
conducted for a real estate property for rent.
The total sales composition ratio was 3.2%.
4) Others
Orders received were ¥99 million (up 8.8% year on year) and turnover was ¥303 million (rising 0.2% year
on year). Segment income amounted to ¥80 million (down 8.1% year on year).
The total sales composition ratio was 2.1%.

2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

(2) Explanation of Financial Position
1) Assets, Liabilities and Net Assets
Total assets as of September 30, 2016, fell by ¥1,080 million from the end of the previous fiscal year to¥42,776 million. This was due to factors in current assets including a decrease of ¥1,272 million in notes andaccounts receivable - trade.
In addition, liabilities decreased ¥1,522 million from the end of the previous fiscal year to ¥14,260 million.
This was due to factors in current liabilities including a decrease of ¥1,333 million in notes and accounts
payable - trade.
Net assets increased by ¥442 million from the end of the previous fiscal year to ¥28,516 million. This wasdue to factors in retained earnings including an increase of ¥585 million in profit attributable to owners ofparent company, offsetting a decrease of ¥419 million for cash dividend payments, and also due to increases of¥129 million in valuation difference on available-for-sale securities and ¥144 million in difference in foreignexchange, respectively.
2) Cash Flows
Cash and cash equivalents (hereinafter, “funds,” referring to cash and deposits minus time deposits withdeposit terms of over three months) in the six months ended September 30, 2016, decreased ¥263 million fromthe end of the previous fiscal year to ¥8,024 million.
(Cash flows from operating activities)
Funds provided by operating activities during the six months ended September 30, 2016, decreased ¥113
million year on year to ¥556 million. The primary factors for the decrease were a decline in notes and accounts
payable - trade of ¥1,307 million and share of (income) loss of associates of ¥312 million, offsetting factors forthe increase including a decrease of ¥1,223 million in notes and accounts receivable - trade, and ¥828 million in
profit before income taxes and minority interests.
(Cash flows from investing activities)
Funds used in investing activities during the six months ended September 30, 2016, grew ¥63 million year
on year to ¥360 million. The primary factors included a ¥388 million outflow due to purchase of fixed assets.
(Cash flows from financing activities)
Funds used in financing activities during the six months ended September 30, 2016, fell by ¥603 million
year on year to ¥463 million. The primary factors included ¥418 million in cash dividend payments.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
With regard to the results forecast for the fiscal year ending March 31, 2017, there has been no change to thefull-year results forecast published in the “Consolidated Financial Results for the Fiscal Year Ended March 31,
2016 [Japanese-GAAP]” dated May 13, 2016.
For details regarding the difference between the financial results forecast and actual financial results for thesix months ended September 30, 2016, please refer to the “Notice Regarding Difference between Consolidated
Financial Results Forecast and Actual Financial Results for the Six Months Ended September 30, 2016”
released today.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

2. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period under Review
No relevant items.
(2) Application of Accounting Procedures Specific to Preparation of Consolidated Quarterly Financial
Statements
No relevant items.
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(Changes in accounting policies)
Following a revision of the Corporation Tax Act, the Company has applied the “Practical Solution on a
Change in Depreciation Method due to Tax Reform 2016” (ASBJ Practical Issues Task Force No. 32, June 17,2016) for the first quarter of the fiscal year ending March 31, 2017. Accordingly, the depreciation method forfacilities attached to buildings and structures acquired on and after April 1, 2016, was changed from thedeclining-balance method to the straight-line method.
This change has minimal effect on the consolidated quarterly financial statements for the six months ended
September 30, 2016.

4

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2016
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
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

5

As of September 30, 2016

8,343,375
11,807,820
1,579,806
411,776
421,259(13,903)
22,550,135

8,080,076
10,535,275
1,790,924
410,791
336,452(12,619)
21,140,902

3,098,782
3,697,405
2,363,401
9,159,590
141,0083,083,042
3,678,449
2,356,188
9,117,680
140,973

11,759,521
527,183(280,165)
12,006,540
21,307,138
43,857,273

12,132,037
499,306(254,070)
12,377,273
21,635,926
42,776,828

9,612,889
1,214,430
181,150
187,230
1,334
996,282
12,193,318

8,279,709
1,119,770
286,472
188,518
4,569
754,314
10,633,356

36,017
21,584
2,547,786
984,8223,590,210
15,783,528

36,017
17,0142,560,731
1,013,536
3,627,299
14,260,656

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

(Thousand yen)
As of March 31, 2016
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 September 30, 2016

5,251,400
4,736,508
19,309,786(1,317,293)
27,980,401

5,251,400
4,736,508
19,475,270(1,346,343)
28,116,835

241,061
77,730(415,129)(96,337)
189,681
28,073,745
43,857,273

370,104
222,234(388,588)
203,750
195,586
28,516,172
42,776,828

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Six Months Ended September 30(Thousand yen)
For the six months ended
September 30, 2015
TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of associates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
State subsidy
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Total extraordinary losses
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent company

7

For the six months ended
September 30, 2016

16,884,844
13,897,377
2,987,466
1,930,051
1,057,415

14,866,509
12,318,299
2,548,209
1,961,652
586,557

390
41,156439,455
75,139556,143

192
47,161
312,404
87,088446,847

17,541
37,68522,92578,152
1,535,405

9,729
186,579
10,248
206,557
826,847

56,17956,179

1,424
1,424

2,236
2,236
1,589,348
446,797
1,412
448,209
1,141,138
4,291
1,136,847

00828,271
272,864(35,802)
237,061591,209
5,904
585,304

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

Consolidated Quarterly Statements of Comprehensive Income
Six Months Ended September 30(Thousand yen)
For the six months ended
September 30, 2015
Profit after income taxes
Other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Share of other comprehensive income of associates
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
company
Comprehensive income attributable to non-controllinginterests

8

For the six months ended
September 30, 2016

1,141,138

591,209(81,716)
3,830
9,523
(26,168)(94,530)
1,046,607

139,232
144,505
30,334(13,984)
300,088891,297

1,042,316

885,392

4,291

5,904

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

(3) Consolidated Quarterly Statements of Cash Flows(Thousand yen)
For the six months ended
September 30, 2015
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 directors’
retirement benefits
Increase (decrease) in provision for environmental
measuresInterest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (income) loss of associates
Loss on disposal of fixed assets
State subsidy
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
Cash flows from investing activities
Payments into time deposits
Purchase of fixed assets
Proceeds from sales of fixed assets
Payments for disposal of fixed assets
Proceeds from state subsidy
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
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

9

For the six months ended
September 30, 2016

1,589,348
331,382(26,176)(4,769)40,483

828,271
318,610(26,484)
1,288
56,083(14,750)――(1,334)(41,547)
17,541(21,879)(439,455)
2,236(56,179)(47,354)
9,729
123,250(312,404)
0(1,424)

618,772

1,223,719

364,388
165,081(233,963)
81,242(1,540,455)(1,307,859)

164,867(184,186)(4,195)960,506
169,137(17,861)(442,349)
669,433(220,828)
85,328(17,241)
558,629
175,044(9,708)(167,542)
556,423(1,466)(345,195)
600(37,342)
56,17930,146(297,077)(3)(388,824)――
1,424
26,555(360,848)(362,409)(303,989)
75(400,857)(1,067,181)
420(694,405)
7,496,372
6,801,966(15,692)(29,049)―(418,827)(463,569)
4,692(263,302)
8,287,591
8,024,288

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016(4) Notes to the Consolidated Quarterly Financial Statements(Notes on going concern assumption)
No relevant items.
(Notes in the case of significant changes in shareholders’ equity)
No relevant items.
(Segment information)
I. For the six months ended September 30, 2015 (April 1, 2015 to September 30, 2015)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Others(Note 1)

Total

Amountrecorded ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)Concrete
Products

Construction

Real Estate
Development

10,333,271

5,760,331

487,931

16,581,534

303,310

16,884,844―

16,884,844

4,228

―

21,42025,648299

25,948(25,948)―

10,337,499
489,3075,760,331
264,942509,351
215,284

16,607,183
969,534

303,60987,88016,910,793
1,057,415(25,948)―

16,884,844
1,057,415

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

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

10

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2016

II. For the six months ended September 30, 2016 (April 1, 2016 to September 30, 2016)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Others(Note 1)

Total

Amountrecorded ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)Concrete
Products

Construction

Real Estate
Development

7,831,352

6,249,583

481,696

14,562,631

303,877

14,866,509―

14,866,509

7,192

―

21,76528,958379

29,337(29,337)―

7,838,545
190,959

6,249,583
125,146

503,461
189,731

14,591,590
505,838

304,256
80,71914,895,846
586,557(29,337)―

14,866,509
586,557

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

2. Information concerning impairment loss on non-current assets, goodwill, etc. by reportable segment
No relevant items.
3. Matters concerning changes in reportable segments, etc.
(Changes in the method of measuring income (loss) of business segments)
Effective from the three months ended June 30, 2016, the method of proportionally allocating selling,
general and administrative expenses has been changed in order to evaluate business performance of eachsegment more appropriately.
The segment information for the six months ended September 30, 2015, has been prepared and disclosed
based on the method after the change.

11