Consolidated Quarterly Financial Results
for the Nine Months Ended December 31, 2019
[Japanese GAAP]
February 14, 2020
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: February 14, 2020
Scheduled date of commencing dividend payments: ―Preparation of supplementary briefing material on quarterly financial results: No
Holding of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2019
(April 1, 2019 to December 31, 2019)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toTurnover
Operating income
Ordinary income
owners of parentcompany
Million yen%

Million yen%

Million yen%

Million yen

Nine months ended
25,566(13.6)
1,316
3.5
2,139
3.0
1,709December 31, 2019
Nine months ended
29,581
11.8
1,272
20.6
2,077
40.1
1,686
December 31, 2018
(Note) Comprehensive income: Nine months ended December 31, 2019: ¥1,928 million [37.5%]
Nine months ended December 31, 2018: ¥1,402 million [(12.0)%]

Nine months ended
December 31, 2019
Nine months ended
December 31, 2018

Earnings per share

Diluted earnings pershare

Yen

Yen

69.60

―

67.89

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of December 31,49,333
33,4062019
As of March 31,49,345
32,0682019(Reference) Equity: As of December 31, 2019: ¥33,070 million
As of March 31, 2019: ¥31,835 million

Equity ratio%

1.3
54.9

Net assets per share%

Yen

67.0

1,350.56

64.5

1,290.73

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

――――――

18.00

18.00

19.00

19.00

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 attributableEarnings
TurnoverOperating income Ordinary income
to owners ofper shareparent company%

Million yen%

Yen

39,000
2.6
1,700
1.8
2,500 (3.1)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen%

Million yen%

Million yen

1,900(7.5)

77.50* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): Yes
Newly included: ― (Company name)
Excluded: 1 (Company name) Nippon Hume Concrete(Thailand) Co., Ltd.
(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 December 31, 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 December 31, 2019: 4,861,171 shares
As of March 31, 2019: 4,683,183 shares
3) Average number of shares during the period
Nine months ended December 31, 2019: 24,554,407 shares
Nine months ended December 31, 2018: 24,846,715 shares* These quarterly financial results are not subject to quarterly review procedures by certified public accountants orauditing 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 Nine Months Ended December 31, 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 .......... 22. 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 significant subsidiaries) ........................................................................................................... 7(Changes in accounting policies) ............................................................................................................... 7(Segment information, etc.) ....................................................................................................................... 71

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2019

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the nine months ended December 31, 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 theback of the trade friction between the United States and China and a downward turn in economic sentiment inJapan, among other factors.
In terms of market trends affecting the Group, demand for Hume pipes in the sewerage-related business wasalmost equal to that 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—topursue 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 nine months ended December 31, 2019, orders received totaled ¥23,271 million (down 17.0% year onyear), and turnover amounted to ¥25,566 million (down 13.6% year on year).
As for profit and loss, operating income was ¥1,316 million (up 3.5% year on year), ordinary income was¥2,139 million (up 3.0% year on year), mainly because of equity in earnings of affiliates and dividend income;and profit attributable to owners of parent company was ¥1,709 million (up 1.3% year on year).

(2) Explanation of Financial Position
Total assets as of December 31, 2019, decreased ¥12 million from the end of the previous consolidated
fiscal year, to ¥49,333 million. This was mainly because, while merchandise and finished goods increased ¥926
million under current assets, and investment securities increased ¥900 million under non-current assets, cash
and deposits decreased ¥915 million and notes and accounts receivable - trade decreased ¥970 million undercurrent assets.
In addition, under liabilities, total liabilities decreased ¥1,350 million from the end of the previous
consolidated fiscal year, to ¥15,927 million. This was mainly because, under current liabilities, notes andaccounts payable – trade decreased ¥510 million, income taxes payable decreased ¥336 million, and short-termloans decreased ¥293 million.
Under net assets, total net assets increased ¥1,338 million from the end of the previous consolidated fiscalyear, to ¥33,406 million. This was mainly because, under retained earnings, while profit attributable to ownersof parent company increased ¥1,709 million, cash dividends paid decreased ¥458 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 full-year results forecast published in the “Notice of Revisions to Annual Performance Forecast”
dated October 29, 2019.

2NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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
OtherProvision 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 December 31, 201911,051,251
12,505,846
2,024,057
534,604
286,154(16,589)
26,385,324

10,135,697
11,535,626
2,950,583
515,139
266,828(14,823)
25,389,050

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

4,098,288
3,571,985
1,699,723
9,369,997
93,446

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

14,232,065
374,074(124,931)
14,481,208
23,944,652
49,333,703

10,664,7001,230,261
432,870
182,750
1,060,491
13,571,074

10,153,801
936,920
96,710―880,954
12,068,386

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

17,2178,657
2,722,571
1,110,486
3,858,933
15,927,319

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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 incomeValuation 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 December 31, 2019

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

5,251,400
4,686,655
24,328,432(2,038,207)
32,228,281

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

854,278
229,797(242,085)
841,989
336,11233,406,383
49,333,703

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2019(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 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
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange lossesOther
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
State subsidy
Gain on sales of shares of subsidiaries and associates
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

5For the nine months ended
December 31, 201929,581,590
25,157,933
4,423,656
3,151,265
1,272,391

25,566,717
21,237,374
4,329,342
3,012,659
1,316,682

1,606
109,365
651,543―
115,811878,326

3,441
116,366
619,043
13,791
106,615859,259

20,53836,85916,221
73,6192,077,098

20,925―
15,82836,753
2,139,188

143,5761,440―
145,016
2,222,115
484,982
40,715525,697
1,696,418
9,629
1,686,788―
1,440
75,02576,4652,215,653
442,997
54,685
497,682
1,717,971
8,883
1,709,088

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2019Consolidated Quarterly Statements of Comprehensive Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 2018
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 parentcompany
Comprehensive income attributable to non-controllinginterests6For the nine months endedDecember 31, 2019

1,696,418

1,717,971(341,669)
23,37350,851(26,261)(293,707)
1,402,711

196,560(3,410)28,446(10,956)
210,639
1,928,611

1,393,081

1,919,728

9,629

8,883

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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 significant subsidiaries)
During the nine months ended December 31, 2019, Humex (Thailand) Co., Ltd., which is a consolidated
subsidiary (sub-subsidiary) of the Company, transferred 60% of the shares it held in Nippon Hume Concrete(Thailand) Co., Ltd., to Mongheng Group Co., Ltd.
With the transfer of shares, Nippon Hume Concrete (Thailand) Co., Ltd., changed from a consolidated
subsidiary to an equity-method affiliate.
(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 nine months ended December 31, 2018 (April 1, 2018 to December 31, 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 on
theAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generationand Real
EstateTotal

20,970,921

7,413,679

1,052,920

29,437,521

144,068

29,581,590―

29,581,590

3,162

―

30,30433,467―33,467(33,467)―

20,974,084
982,732

7,413,679
791,824

1,083,224
612,91329,470,988
2,387,469

144,068
41,162

29,615,057
2,428,632(33,467)(1,156,240)

29,581,590
1,272,391

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 ¥(1,156,240) thousand is corporate expenses not allocated toreportable segments. Corporate expenses are general and administrative expenses not attributable toreportable segments.
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 Nine Months Ended December 31, 2019

II. For the nine months ended December 31, 2019 (April 1, 2019 to December 31, 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 on
theAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generationand Real
EstateTotal

16,666,673

7,743,837

1,024,301

25,434,812

131,905

25,566,717―

25,566,717

4,916

―

29,65934,575―34,575(34,575)―

16,671,589
708,061

7,743,837
1,066,604

1,053,960
585,71325,469,387
2,360,380

131,905
32,15825,601,292(34,575)
2,392,539 (1,075,856)

25,566,717
1,316,682

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 ¥(1,075,856) thousand is corporate expenses not allocated toreportable segments. Corporate expenses are general and administrative expenses not attributable toreportable segments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated QuarterlyStatements 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 eachsegment.
(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 to more accurately assess management results in each segment.
The segment information for the third quarter of the previous consolidated fiscal year is disclosed based on themethod adopted with this change.

8