Consolidated Financial Statements
as of March 31,2023

NIKKI CO.,LTD.

Consolidated Financial Statements（１）Consolidated Balance Sheets( in thousands of yen)
Prior Fiscal Year(As of March 31,2022)

Accounts

Amounts

Ratio(%)

Current Fiscal Year(As of March 31,2023)
Amounts

Ratio(%)

Increase
Decrease(△)

AssetsCurrent assets
Cash and deposits

3,257,415

4,675,856

1,418,440

Accounts receivable-trade

1,313,498

1,737,785

424,287

416,000

187,488△ 228,512

Merchandise and finished goods

1,255,332

1,464,870

209,538

Work in process

1,161,657

1,144,668△ 16,988

Raw materials and supplies

78,28595,29417,008Other529,251

450,775△ 78,475

Allowance for doubtful accounts△ 11,307△ 4,292

7,015

Total current assets

8,000,134

Electronically recorded monetary claims-operating

44.8

9,752,447

48.1

1,752,312

Noncurrent assets
Property, plant and equipment
Buildings and structures, net

2,331,385

6,460,564

4,129,178

Machinery, equipment and vehicles, net

682,518

600,609△ 81,909

Land405,723

379,569△ 26,153

Lease assets, net

36,181

82,15645,9744,582,516

1,052,886△ 3,529,630

136,946

239,566

102,619

Construction in progress
Other, net
Total property, plant and equipment
Intangible assets

8,175,272

45.8

8,815,352

43.5

640,080

53,184

0.3

52,8610.3△ 322

Investments and other assets
Investment securities

1,558,562

1,531,697△ 26,864

Long-term Deferred tax assets

30,48757,022

26,535

Other

21,53467,55546,021

Total investments and other assets
Total noncurrent assets
Total assets

1,610,584

9.0

1,656,276

8.2

45,692

9,839,041

55.2

10,524,491

51.9

685,450

17,839,176 100.0

20,276,939

100.0

2,437,762

( in thousands of yen)Accounts

Current Fiscal Year(As of March 31,2022)

Current Fiscal Year(As of March 31,2023)

Ratio
(%)

Ratio
(%)

Amounts

Amounts

Increase
Decrease(△)

Liabilities
Current liabilities
Notes and accounts payable-trade

199,410

399,017

199,606

Electronically recorded monetary debt-operating

389,550

401,670

12,1202,441,740

3,509,188

1,067,448

Lease obligations

6,354

10,130

3,776

Accurued expenses

154,587

139,212△ 15,374

Income taxes payable

349,708

14,314△ 335,394

Provision for bonuses

149,264

144,922△ 4,341

－

3,450

3,450

2,002,190

194,190△ 1,808,000

171,918

345,596

173,677

Short-term loans payable

Provision for head office transfer cost
Notes payable - facilities
Other
Total current liabilities

5,864,723

32.9

5,161,691

25.5△ 703,031

Noncurrent liabilities
Long-term loans payable

1,448,260

3,858,554

2,410,294

Lease obligations

32,91975,67342,754

Deferred tax liabilities

145,112227,12982,016Long-term lease deposited

515,713515,713－Net defined benefit liability

527,597

450,529△ 77,068

Other

159,476

157,926△ 1,550

Total noncurrent liabilities

2,829,079

15.9

5,285,525

26.1

2,456,445

Total liabilities

8,693,803

48.7

10,447,217

51.5

1,753,413

Net assets
Shareholders' equity
Capital stock

500,000

500,000－

Capital surplus

49,17549,175－Retained earnings

7,750,913

8,489,291

738,377

Treasury stock△ 205,496△ 327,669△ 122,172

Total shareholders' equity

8,094,592

45.4

8,710,797

43.0

616,204

Accumulated other comprehensive incomeValuation difference on available-for-sale securities

822,969

804,325△ 18,644

Foreign currency translation adjustment

161,701

291,189

129,488

Remeasurements of defined benefit plans

44,912△ 504△ 45,417

Total accumulated other comprehensive income

1,029,583

5.8

1,095,010

5.4

65,426

Minority Interests

21,1960.1

23,9130.1

2,717

Total net assets

9,145,372

51.3

9,829,721

48.5

684,349

Total liabilities and net assets

17,839,176 100.0

20,276,939 100.0

2,437,762

（２） Consolidated Statement of Income( in thousands of yen)

Current Fiscal Year
From April 1, 2021
To March 31,2022
Ratio
(%)

Current Fiscal Year
From April 1, 2022
To March 31,2023
Ratio
(%)

Net Sales

8,844,286

100.0

8,802,961

100.0△ 41,325

Cost of Sales

6,367,690

72.0

6,049,239

68.7△ 318,450

Gross Profit

2,476,596

28.0

2,753,722

31.3

277,125

Selling,general administrative
expenses

1,392,159

15.7

1,584,694

18.0

192,534

Operating Income

1,084,437

12.3

1,169,028

13.3

84,590Accounts

Increase
Decrease(△)

Non-operating income
Interest income

13,13323,381

10,247

Dividends income

41,53644,633

3,096

Royalty income

7,960

897

△ 7,062

Exchange gain

242,207

199,609△ 42,598

Subsidy income

11,535－△ 11,535

Other

22,324

16,140△ 6,183

Total non-operating income

338,698

3.8

284,662

3.2△ 54,036

Non-operating expenses
Interest expenses

30,29347,493

17,200Commission fee

20,000－△ 20,000

0329

329

Other
Total non-operating expenses
Ordinary income

50,2930.6

47,823

0.5△ 2,740

1,372,842

15.5

1,405,866

16.0

33,024Extraordinary income
Gain on sales of noncurrent
assetsGain on sales of investment
securities
Other
Total extraordinary income

243

359,141

358,898

1,804

58△ 1,745－

10,00010,0002,047

0.0

369,199

4.2

367,152

Extraordinary loss
Loss on sales and retirementof noncurrent assets

48,307

309,652

261,344

Environmental expenses

24,140108,083

83,943

Provision for head officetransfer cost

－

3,450

3,450

Head office transfer cost－

166,647

166,647

Impairment loss

5,975

－

△ 5,975

Total extraordinary loss

78,4220.9

587,833

6.7

509,410

Income before income taxes

1,296,466

14.7

1,187,233

13.5△ 109,233

Income taxes-current

398,808

225,172△ 173,636

Income taxes deferred△ 24,984

83,456

108,440

Total income taxes-current

373,824

308,628△ 65,195

Income berofe minority interests

922,642

Minority interests in income
Net income

10.4

△ 842
923,484

878,604

10.0

371
10.4

878,232△ 44,038
1,213

10.0

△ 45,251

（３） Consolidated Statement of Comprehensive Income( in thousands of yen)

Current Fiscal Year
From April 1, 2021
To March 31,2022

Current Fiscal Year
From April 1, 2022
To March 31,2023

922,642878,604△ 44,038

Valuation difference on available-forsale securities△ 98,692△ 18,644

80,048Foreign currency translation adjustment

200,520

131,834△ 68,686

Remeasurements of defined benefit
plans△ 14,140△ 45,417△ 31,276

Total Other comprehensive income

87,687

67,772△ 19,915

1,010,329

946,376△ 63,953

Comprehensive income attributable toowners of the parent

1,011,236

943,658△ 67,577

Comprehensive income attributable tominority insterests

△ 906

2,717

3,624

Increase
Decrease(△)

Accounts
Income berofe minority interests
Other comprehensive income

Comprehensive income(Comprehensive income attributable to)（４）Consolidated Statement of Changes in Shareholders' Equity
Current fiscal year (April 1,2022 to March 31,2023)( in thousands of yen)
Shareholders' equity

Capital stock

Balance at beginning of current
periodCapital surplus

500,000

Retained earnings

Treasury shares

Total shareholders'equity

7,750,913△ 205,496

8,094,592

49,175

Changes of items during the period

Dividends paid

△ 133,907△ 133,907

878,232

878,232

Net income

Purchase of treasury shares△ 5,947

Disposal of treasury shares△ 147,200△ 147,200

25,027

19,080Change in treasury shares ofparent arising from transactions
with non-controlling shareholders－Net changes of items other thanshareholders' equity
Total changes of items during theperiod－－

738,377△ 122,172

616,204

Balance at end of current period

500,000

49,1758,489,291△ 327,669

8,710,797

Accumulated other comprehensive income

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

Foreign currencytranslation
adjustment

822,969

161,701

Remeasurementsof defined benefit
plans

44,912

Total Accumulated
Minority interests
othercomprehensive
income1,029,583

21,196

Total net assets

9,145,372

Changes of items during the period△ 133,907

Dividends paid

878,232

Net income

Purchase of treasury shares△ 147,200

Disposal of treasury shares

19,080Change in treasury shares ofparent arising from transactions
with non-controlling shareholders－Net changes of items other thanshareholders' equity△ 18,644

129,488△ 45,417

65,426

2,717

68,144

Total changes of items during theperiod△ 18,644129,488△ 45,417

65,426

2,717

684,349

Balance at end of current period

804,325

291,189△ 504

1,095,010

23,9139,829,721

（５）Consolidated Statements of Cash Flows( in thousands of yen)
Current Fiscal Year Current Fiscal Year
From April 1, 2022 From April 1, 2022
To March 31,2021 To March 31,2023

Increase
Decrease(△)

Net cash provided by (used in) operating activities
Income before income taxes

1,296,466

1,187,233△ 109,233

Depreciation and amortization

473,501

545,035

71,534

Impairment loss

5,975－△ 5,975

Increase (decrease) in allowance for doubtful accounts

3,028△ 7,052△ 10,080

Increase (decrease) in provision for bonuses

4,765△ 4,384△ 9,150－3,450

3,450

Increase (decrease) in net defined benefit liability△ 139,754△ 142,333△ 2,579

Interest and dividends income△ 54,670△ 68,014△ 13,344

Interest expenses

30,29347,493

17,200Gain on sales of investment securities△ 1,804

△ 58

1,745

Loss (gain) on sales and retirement of noncurrent assets

48,064△ 49,488△ 97,553

Exchange gain(loss)△ 34,421△ 1,61332,808

Decrease (increase) in notes and accounts receivable-trade△ 483,153△ 127,630

355,523

Decrease (increase) in inventories△ 327,314

4,527

331,841－△ 11,027△ 11,027△ 307,134△ 27,883

279,250

Increase (decrease) in notes and accounts payable-trade177,245△ 109,406△ 286,652

Increase (decrease) in other current liabilities

40,69917,705△ 22,994

Other

7,689

17,025

9,336

subtotal

739,477

1,273,577

534,099

Interest and dividends income received

54,67068,014

13,344

Interest expenses paid

△ 27,381△ 50,362△ 22,980

Income taxes paid

△ 89,375△ 489,716△ 400,341

Net cash provided by (used in) operating activities

677,391

801,512124,121

Increase (decrease) in provision for head office transfer cost

Decrease (increase) in ｌong-term loans payable
Decrease (increase) in other current assets

( in thousands of yen)
Current Fiscal Year Current Fiscal Year
From April 1, 2021 From April 1, 2022
To March 31,2022 To March 31,2023

Increase
Decrease(△)

Net cash provided by (used in) investing activities
Payments into time deposits△ 205,614△ 100,000

105,614

Proceeds from withdrawal of time deposits

247,384

121,372△ 126,012

Proceeds from sales of investment securities

9,504

174

△ 9,329

Purchase of property, plant and equipment△ 2,510,600△ 3,237,738△ 727,138

3,753

584,334

580,581

Purchase of intangible assets△ 11,285△ 2,280

9,004

Other investment payment△ 554△ 35,485△ 34,931

Other investment income

1,688

581

△ 1,106△ 2,465,723△ 2,669,042△ 203,318△ 13,979△ 8,230

5,748－

1,000,000

1,000,000

Proceeds from long-term loans payable

1,440,000

2,660,000

1,220,000

Repayment of long-term loans payable－△ 182,258△ 182,258

Purchase of treasury stock－△ 147,200△ 147,200△ 104,646△ 133,907△ 29,260△ 2,633－

2,633

1,318,740

3,188,403

1,869,662

Effect of exchange rate change on cash and cash equivalents△ 108,820

117,870

226,690

Increase and decrease in cash and cash equivalents△ 578,411

1,438,744

2,017,156

Cash and cash equivalents at the start of the period

3,715,523

3,137,111△ 578,411

Cash and cash equivalents at the end of the period

3,137,111

4,575,856

1,438,744

Proceeds from sales of property, plant and equipment

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Repayments of lease obligations
Net increase (decrease) in short-term loans payable

Dividend payment
Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Net cash provided by (used in) financing
activities