Consolidated Quarterly Financial Results
for the Six Months Ended September 30, 2022
[Japanese GAAP]
November 11, 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 filing quarterly securities report: November 11, 2022
Scheduled date of commencing dividend payments: ―Preparation of supplementary briefing material on quarterly financial results: Yes
Holding of quarterly 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 Six Months Ended September 30, 2022
(April 1, 2022 to September 30, 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%

Million yen

Six months ended
14,861
5.2
460 (28.5)
1,408
0.8
1,187
September 30, 2022
Six months ended
14,130(6.1)
644 (25.5)
1,397
(7.9)
1,137
September 30, 2021
(Note) Comprehensive income: Six months ended September 30, 2022: ¥973 million [-4.3%]
Six months ended September 30, 2021: ¥1,016 million [-43.7%]

Six months ended
September 30, 2022
Six months ended
September 30, 2021

Earnings per share

Diluted earnings per
share

Yen

Yen

49.18

―

46.69

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of September 30,
52,61037,3472022
As of March 31,
52,12136,9352022(Reference) Equity: As of September 30, 2022: ¥37, 036 million
As of March 31, 2022: ¥36, 626 million

Equity ratio

%

4.5
(1.1)

Net assets per share
%

Yen

70.4

1,534.94

70.3

1,514.78

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―

20.00

20.00

―

21.00

21.00

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
(Forecast)

Total(Note) Revision to the dividend forecast announced most recently: No

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
Earnings
TurnoverOperating income Ordinary income
to owners ofper share
parent company
Million yen%

Million yen%

Million yen%

32,0008.5
1,600 10.3
2,500 (1.1)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen

%

Yen

1,800

(15.7)

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) 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.: No
2) Changes in accounting policies other than 1) above: Yes
3) Changes in accounting estimates: Yes
4) 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 September 30, 2022: 29,347,500 shares
As of March 31, 2022: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of September 30, 2022: 5,218,696 shares
As of March 31, 2022: 5,168,111 shares
3) Average number of shares during the period
Six months ended September 30, 2022: 24,156,246 shares
Six months ended September 30, 2021: 24,355,477 shares* These quarterly financial results are not subject to quarterly review procedures 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. 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 4 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

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 .......... 4
2. Consolidated Quarterly Financial Statements and Important Notes ........................... ....................................5(1) Consolidated Quarterly Balance Sheets ..................................................................................................... 5(2) Consolidated Quarterly Statements of Income and Comprehensive Income ............................................. 7(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(Changes in accounting policies that are inseparable from changes in accounting estimates, andchanges in accounting estimates) ............................................................................................................... 10(Segment information, etc.) ...................................................................................................................... 111

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the six months ended September 30, 2022, social and economic activities have started to normalize
as a result of the spread of coronavirus vaccination programs and deregulation of movement restrictions in theJapanese economy; nonetheless, the situation remained uncertain due to factors such as the seventh coronavirus
wave, soaring prices of raw materials and energy resources due to the persisting situation in Ukraine and therapid depreciation of the yen, and a decline in consumer confidence due to commodity price hikes.
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. Private capital
investment also showed indications of a recovery, but conditions remain harsh overall as a result of intensecompetition over orders and the soaring prices of raw materials and energy resources and delivery delays,among other factors.
In the foundations business, nationwide demand for concrete piles increased year on year, while in thesewerage-related business, demand for Hume pipes and other products fell below the levels seen in the same
period of the previous fiscal year.
Under these conditions, in the six months ended September 30, 2022, turnover amounted to ¥14,861 million(up 5.2% year on year). Operating income was ¥460 million (down 28.5% year on year), partly due to theimpact of the rapid rise in raw materials prices on already-contracted projects; ordinary income was ¥1,408
million (up 0.8% year on year); and profit attributable to owners of parent company was ¥1,187 million (up4.5% year on year).
The main initiatives under the medium-term management plan, the 21-23 Plan, for the six months ended
September 30, 2022, included announcement at Sewage Works Exhibition ’22 Tokyo of the Wellman verticalwater tank for urban flooding countermeasures, research on the manufacture of precast concrete blocks by 3D
printers using cement-based materials in response to the critical shortage of construction workers, shortening
construction management time by promoting nationwide introduction of the “Pile-ViMSys” ICT construction
management system for pile work and additional functionalities, additional functionalities of low-carbon
concrete, “e-CON®,” for the carbon neutrality and demonstration experiments, and research for the applicationof ultra-high-strength fiber-reinforced concrete to cylindrical members.
The market environment affecting the Company is expected to remain harsh, but aging of the social
infrastructure is urgent, and the Group will steadily implement the 21-23 Plan, the Group’s medium-term
management plan concluding in the fiscal year ending March 31, 2024. The Group will proceed with further
business restructuring, as well as capital investment and the research and development of products andconstruction techniques that will drive growth, with the aim of further stabilizing the management foundation
and achieving sustainable growth.

An overview of the business segments is provided below.
1) Foundations business
Turnover totaled ¥9,416 million (up 5.6% year on year) and operating income was ¥197 million (up44.5%). Shipments of concrete piles progressed well due to factors such as private-sector factory
construction, and resulted in increases both in turnover and income.
The Group will work to raise profitability by improving profit ratios through strict and precise profit
and loss management and strengthening sales by expanding our business domain through nodular piles.
2) Sewerage-related business
Turnover totaled ¥4,690 million (up 5.2% year on year) and operating income was ¥634 million(down 23.2%). As climate disasters grow more intense and frequent, large-scale earthquakes become apressing risk, and social infrastructure ages, the Type 1, Type 2, Type 5, and Type 6 Steel Composite
Pipes as water storage pipes, which we developed last year, began to contribute to shipping results, ashigh value-added products geared toward disaster prevention, disaster mitigation, and national
2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

resilience measures.
The Group will continue to work to improve earning capacity focusing on timely productdevelopment that meets market needs.
3) Solar Power Generation and Real Estate business
Turnover amounted to ¥732 million (up 1.1% year on year) and operating income was ¥426 million(up 4.0%). Real estate rental revenue was solid, and in the solar power generation area, both electric
power generation and power selling progressed smoothly for NH Tohoku Solar Power Generation and
NH Okayama Solar Power Generation.
4) Others
In Others, turnover totaled ¥20 million (down 23.9% year on year) and operating income was ¥14
million (down 32.2%).
(2) Explanation of Financial Position
1) Assets, Liabilities and Net Assets
Total assets as of September 30, 2022, had increased ¥488 million from the end of the previous consolidated
fiscal year, to ¥52,610 million. This was mainly because, under current assets, while notes and accounts
receivable - trade and contract assets decreased ¥1,310 million, cash and deposits increased ¥663 million,
merchandise and finished goods increased ¥661 million, and raw materials and supplies increased ¥224 million;also, under non-current assets, investment securities increased ¥214 million.
In addition, under liabilities, total liabilities were ¥15,262 million, at the same level as the end of theprevious consolidated fiscal year.
Under net assets, total net assets increased ¥411 million from the end of the previous consolidated fiscal
year, to ¥ 37,347 million. This was mainly because, under retained earnings, while profit attributable to ownersof parent company increased ¥1,187 million, there was a decrease of ¥499 million for cash dividends paid, andvaluation difference on available-for-sale securities decreased ¥223 million.
2) Cash Flows
Cash and cash equivalents (hereinafter, “funds,” referring to cash and deposits minus time deposits withdeposit terms of over three months) as of September 30, 2022, had increased ¥663 million from the end of theprevious consolidated fiscal year, to ¥13,685 million.
(Cash flows from operating activities)
Funds provided by operating activities during the six months ended September 30, 2022, increased ¥1,621
million year on year to ¥1,633 million. This was mainly because of an increase of ¥862 million in inventories,¥720 million in share of income of associates, and ¥427 million in income taxes paid, while there was anincrease of ¥1,409 million in profit before income taxes and minority interests, a decrease of ¥1,337 million innotes and accounts receivable - trade, and an increase of ¥791 million in notes and accounts payable - trade.
(Cash flows from investing activities)
Funds used in investing activities during the six months ended September 30, 2022, increased ¥203 million
year on year to ¥467 million. This was mainly because of ¥467 million in purchase of fixed assets.
(Cash flows from financing activities)
Funds used in financing activities during the six months ended September 30, 2022, decreased ¥177 million
year on year to ¥546 million. This was mainly because of ¥499 million in cash dividends paid.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the results forecasts pertaining to the fiscal year ending March 31, 2023, there has been nochange to the full-year results forecast published in the “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2023 [Japanese GAAP]” dated May 13, 2022.
For details of differences between the financial results forecast and actual results for the six months ended
September 30, 2022, kindly refer to the “Notice on Differences between the Financial Results Forecast andActual Results for the Six Months Ended September 30, 2022,” announced today.

4

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

2. Consolidated Quarterly Financial Statements and Important Notes(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
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, 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 loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Provision for share-based remuneration for directors
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

5

As of September 30, 2022

13,065,056

13,728,967

10,284,336

8,973,949

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

3,334,013
863,904
281,056(12,602)
27,169,289

3,885,336
3,607,220
1,786,337
9,278,894
176,286

3,766,633
3,610,592
1,924,272
9,301,499
192,10915,462,325
310,942(32,250)
15,741,017
25,196,198
52,121,844

15,676,591
302,793(32,250)
15,947,135
25,440,744
52,610,033

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

9,192,403
1,035,813
307,530
188,765558
924,665
11,649,737

25,975
14,9072,610,601
1,045,042
3,696,526
15,186,328

29,812
14,907
2,637,774
930,592
3,613,086
15,262,823

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

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

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

5,251,400
4,773,375
28,539,200(2,379,419)
36,184,556

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

657,769
162,138
31,692
851,600
311,052
37,347,209
52,610,033

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

(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, 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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
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 (loss) attributable to non-controlling interests
Profit attributable to owners of parent company

7

For the six months ended
September 30, 2022

14,130,645
11,607,468
2,523,176
1,878,437
644,739

14,861,012
12,432,341
2,428,670
1,967,801
460,868200
101,531603,984
7,555
54,278
767,550

254
89,932
720,667
91,87064,927
967,653

6,709
8,369
15,0781,397,211

6,838
12,73019,568
1,408,953

3,620
3,620

165
165

―
―
1,400,831
291,442(25,848)
265,593
1,135,237(1,938)1,137,176

5
5
1,409,113
225,784(13,591)
212,192
1,196,920
8,934
1,187,986

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

Consolidated Quarterly Statements of Comprehensive Income
Six Months Ended September 30(Thousand yen)
For the six months ended
September 30, 2021
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

For the six months ended
September 30, 2022

1,135,237

1,196,920(101,078)(15,457)
14,655(16,828)(118,709)
1,016,528(221,323)(37,998)
24,435
11,175(223,711)
973,209

1,018,466

964,275(1,938)8,934

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

(3) Consolidated Quarterly Statements of Cash Flows(Thousand yen)
For the six months ended
September 30, 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 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
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
Decrease (increase) in other non-current assets
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 investment securities
Purchase of fixed assets
Proceeds from sales of fixed assets
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
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

9

For the six months ended
September 30, 2022

1,400,831
323,383996
842
26,393

1,409,113
292,001
729
3,100
41,210

4,232

3,837

3,334

(6,946)(101,731)
6,709(1,650)(603,984)(3,620)―(90,186)
6,838(34,700)(720,667)(165)
5(616,023)

1,337,487(364,113)(73,919)(862,391)
54,00675,224

791,937(135,745)
40,18030,716265
12,323
260,686(6,707)(254,077)
12,225(175,777)(245,660)
20,059(22,784)
1,801,047
266,241(6,824)(427,126)
1,633,337

(528)
(165)
(290,984)
7,072
20,595(264,010)――(467,301)
1,780(2,005)(467,526)

10,251(101,051)(632,399)(1,414)(724,614)
6,879(969,520)
12,285,682
11,316,162(11,675)(34,356)(499,497)(1,414)(546,943)
45,043663,910
13,021,464
13,685,374

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

(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.

(Changes in accounting policies that are inseparable from changes in accounting estimates, and changes inaccounting estimates)(Changes in the depreciation method and useful life of property, plant and equipment)
In general, the Company previously applied the declining-balance method of depreciation for property, plantand equipment. From the start of the three months ended June 30, 2022, the Company has changed the method
applied to the straight-line method.
The Company has made this change because it believes that using the straight-line method to allocate
depreciation equally across the useful life of assets more appropriately reflects the actual nature of usage, in viewof the expectation of more stable operation throughout the period of use than was previously the case, due toimproved functionality facilitated by stronger capital investment under the medium-term management plan.
Moreover, it has become clear that some assets can be used for longer than the useful life estimated previously,
due to stronger capital investment under the medium-term management plan, and the useful life for these assets has
therefore been changed to correspond with actual usage.
As a result, for the six months ended September 30, 2022, operating income, ordinary income, and profit before
income taxes and minority interests were each ¥61 million higher than when calculated using the previous method.

10

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Six Months Ended September 30, 2022

(Segment information, etc.)
I. For the six months ended September 30, 2021 (April 1, 2021 to September 30, 2021)
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 ontheAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate8,920,272

4,458,413

724,572

14,103,258

27,386

14,130,645―

14,130,645

1,870

―

18,894

20,764―

20,764(20,764)―

8,922,142
136,658

4,458,413
826,348

743,467
409,935

14,124,023
1,372,941

27,38621,981

14,151,410
1,394,923(20,764)(750,184)

14,130,645
644,739

Total

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(750,184) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportablesegments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.

II. For the six months ended September 30, 2022 (April 1, 2022 to September 30, 2022)
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 ontheAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate9,416,795

4,690,935

732,432

14,840,162

20,85014,861,012―

14,861,012

3,454

―

19,32922,783―22,783(22,783)―

9,420,249
197,517

4,690,935
634,945

751,761
426,388

14,862,946
1,258,851

20,85014,912

14,883,796
1,273,763(22,783)(812,895)

14,861,012
460,868

Total

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(812,895) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportablesegments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.
11