Consolidated Quarterly Financial Results
for the Nine Months Ended December 31, 2016
[Japanese GAAP]
February 10, 2017
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: February 10, 2017
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, 2016 (April 1, 2016 to December 31,
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

Nine months ended
23,023(6.7)
1,108 (16.4)
1,401 (16.5)
955
December 31, 2016
Nine months ended
24,676(6.9)
1,325 (18.8)
1,678 (51.0)
1,318
December 31, 2015
(Note) Comprehensive income: Nine months ended December 31, 2016: ¥1,683 million [17.8%]
Nine months ended December 31, 2015: ¥1,428 million [(45.4)%]

Nine months ended
December 31, 2016
Nine months ended
December 31, 2015

Earnings per share

Diluted earnings per
share

Yen

Yen

37.60

―

50.96

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of December 31,
44,017
29,2482016
As of March 31,
43,85728,0732016(Reference) Equity: As of December 31, 2016: ¥29,049 million
As of March 31, 2016: ¥27,884 million

Equity ratio
%

66.0
63.6

%

(27.5)(54.3)

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%

32,000 (5.2)
1,400 (26.1)
1,800 (22.6)
Full year(Note) Revision to the financial results forecast announced most recently: Yes

Million yen

%

Yen

1,400

(22.3)

55.09* 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 December 31, 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 December 31, 2016: 4,029,648 shares
As of March 31, 2016: 3,898,940 shares
3) Average number of shares during the period
Nine months ended December 31, 2016: 25,413,228 shares
Nine months ended December 31, 2015: 25,866,102 shares

* Presentation regarding the implementation status of the quarterly review procedure
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 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 3 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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) Notes to the Consolidated Quarterly Financial Statements ........................................................................ 9(Notes on going concern assumption) ........................................................................................................ 9(Notes in the case of significant changes in shareholders’ equity) ............................................................. 9(Segment information) ............................................................................................................................... 91

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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 nine months ended December 31,
2016, amid improvement in the employment and income environment resulting from government initiatives.
The outlook was unclear, however, given growing uncertainty in overseas economies. The factors included
downswings in China, other emerging nations in Asia and in resource-rich nations, and the U.K.’s plan to exitfrom the European Union (EU).
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.
Under these circumstances, the Group aims for stable profits and sustainable growth in line with the basic
policy of the medium-term management plan, “Evolution All Japan,” that covers the three years from fiscal
2015. To that end, we are working diligently in four themes of “deepening” to enhance existing value andfunctions, “expansion” into new markets and new applications, “evolution” through new combinations of value
and function, and “renewal” by innovation.
Orders received for products and construction, etc. for the nine months ended December 31, 2016, were
¥22,473 million (a year-on-year decline of 3.1%). Turnover including revenue from products, construction andreal estate amounted to ¥23,023 million (down 6.7% year on year).
Looking at profit and loss, the Company continued to concentrate on research and development during theperiod under review, and operating income was ¥1,108 million (a year-on-year decline of 16.4%). Ordinary
income was ¥1,401 million (a year-on-year drop of 16.5%), mainly due to the effect of share of income ofassociates, dividend income and exchange rates. Profit attributable to owners of parent company was ¥955
million (a year-on-year decrease of 27.5%).
Segment results are indicated as follows.
1) Concrete Products
Orders received were ¥12,236 million (down 8.6% year on year). Turnover was ¥12,300 million (down
15.7% 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 ¥362 million (down 16.4% year
on year).
The total sales composition ratio was 53.4%.
2) Construction
Orders received were ¥10,090 million (up 4.6% year on year) and turnover was ¥9,552 million (up 7.4%
year on year). Segment income amounted to ¥332 million (down 26.2% year on year), mainly due to intensified
price competition in pile construction.
The total sales composition ratio was 41.5%.
3) Real Estate Development
Turnover was almost on the same level as the previous year at ¥728 million (down 0.4% year on year).
Segment income amounted to ¥302 million (down 3.5% 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 ¥145 million (down 2.8% year on year) and turnover was ¥441 million (down 4.1%
year on year). Segment income amounted to ¥111 million (down 13.1% year on year).
The total sales composition ratio was 1.9%.

2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2016

(2) Explanation of Financial Position
Total assets as of December 31, 2016, rose by ¥159 million from the end of the previous fiscal year to¥44,017 million. This was due to factors in current assets including increases of ¥359 million in notes andaccounts receivable – trade and ¥261 million in merchandise and finished goods, offsetting a decrease of¥1,273 million in cash and deposits, and also due to an increase in non-current assets of ¥895 million in
investment securities.
In addition, liabilities decreased ¥1,014 million from the end of the previous fiscal year to ¥14,768 million.
This was due to factors in current liabilities including a decrease of ¥844 million in notes and accounts payable- trade.
Net assets increased by ¥1,174 million from the end of the previous fiscal year to ¥29,248 million. This wasdue to factors in retained earnings including an increase of ¥955 million in profit attributable to owners ofparent company, offsetting a decrease of ¥419 million for cash dividend payments, and also due to an increaseof ¥524 million in valuation difference on available-for-sale securities.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
The results forecast for the fiscal year ending March 31, 2017 has been revised in light of recent results
trends. For details, please refer to the “Notice Regarding Revision of Financial Results Forecast” released today.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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 nine months ended
December 31, 2016.

4

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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
Provision for loss on construction contracts
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 December 31, 2016

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

7,069,463
12,167,710
1,841,536
472,530
476,862(13,715)
22,014,387

3,098,782
3,697,405
2,363,401
9,159,590
141,008

3,033,688
3,677,982
2,253,861
8,965,531
138,219

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

12,655,445
497,025(253,393)
12,899,076
22,002,827
44,017,215

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

8,767,893
1,104,148
232,879――818
835,564
10,941,304

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

36,017
17,014
2,597,478
1,176,786
3,827,296
14,768,601

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 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 December 31, 2016

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

5,251,400
4,736,508
19,845,434(1,405,617)
28,427,725

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

765,547
233,197(376,963)
621,782
199,106
29,248,614
44,017,215

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2016

(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, 2015

For the nine months ended
December 31, 2016

24,676,335
20,433,503
4,242,832
2,916,950
1,325,881

23,023,228
18,962,374
4,060,853
2,952,123
1,108,730

687
79,334385,186
129,284
594,492248
89,500274,377
119,374
483,501

24,762
179,821
37,232
241,816
1,678,557

15,342
155,451
20,132
190,926
1,401,304―
56,17956,179

383
1,424
1,807

2,296
86,22488,5201,646,216
233,468
86,916320,385
1,325,831
7,638
1,318,192

0―01,403,112
419,163
19,055438,219964,8939,424
955,468

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
Gain on sales of fixed assets
State subsidy
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Structural 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
Profit attributable to non-controlling interests
Profit attributable to owners of parent company

7

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2016

Consolidated Quarterly Statements of Comprehensive Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 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 nine months ended
December 31, 2016

1,325,831

964,893

23,897
102,835
14,285(38,322)
102,696
1,428,527

512,780
155,468
43,793
6,077
718,120
1,683,013

1,420,889

1,673,589

7,638

9,424

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2016(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.
(Segment information)
I. For the nine months ended December 31, 2015 (April 1, 2015 to December 31, 2015)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

Concrete
Products

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Others(Note 1)

Total

Amountrecorded ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)

Construction

Real Estate
Development

14,586,639

8,897,703

731,615

24,215,958

460,377

24,676,335―

24,676,335

8,457

―

31,90840,366389

40,755(40,755)―

14,595,097
433,639

8,897,703
449,994

763,523
313,964

24,256,324
1,197,598

460,766
128,282

24,717,091
1,325,881(40,755)―

24,676,335
1,325,881

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.

9

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2016

II. For the nine months ended December 31, 2016 (April 1, 2016 to December 31, 2016)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

Concrete
Products

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Others(Note 1)

Total

Amountrecorded ontheConsolidated
Adjustments
QuarterlyStatements ofIncome(Note 2)

Construction

Real Estate
Development

12,300,657

9,552,289

728,589

22,581,536

441,691

23,023,228―

23,023,228

9,825

―

31,916

41,742279

42,021(42,021)―

12,310,482
362,327

9,552,289
332,015

760,506
302,891

22,623,278
997,234

441,971
111,495

23,065,249
1,108,730(42,021)―23,023,228
1,108,730

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 nine months ended December 31, 2015, has been prepared and disclosed
based on the method after the change.

10