Financial Results for Second Quarter of Fiscal Year Ending March 31, 2021
[Japanese GAAP] (Consolidated Data)
November 5, 2020
Company Name:

Nikko Co., Ltd.

Stock Exchange Listing: Tokyo Stock Exchange

Stock Code:6306

URL http://www.nikko-net.co.jp

Representative Director andMasaru Tsuji
President
Managing Director and General
For inquiries:
Hiroshi Fujii
Telephone: +81-78-947-3141
Manager of the Financial Division
Scheduled date for filing
November 13, 2020
Scheduled date for cash dividends:
December 7, 2020
the quarterly report:
Quarterly earnings supplementaryYes
explanatory materials:
Quarterly financial results briefing
Yes (for institutional investors, analysts and newspaper reporters)
session:Representative:(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for Second Quarter of Fiscal Year Ending March 31, 2021 (April 1, 2020 - September 30,2020)(1) Consolidated Operating Results (cumulative)(% represents year-on-year change)
Quarterly net income
Net sales
Operating income
Ordinary income
attributable to ownersof parent
million yen%million yen%million yen%million yen%Six months ended18,225
6.31,000
4.2
1,588
53.5
1,099
9.6
September 30, 2020
Six months ended
17,140
16.6
959
102.3
1,034
73.6
1,003
77.8
September 30, 2019
Note: Comprehensive income: Six months ended September 30, 2020: 1,272 million yen (231.1%)
Six months ended September 30, 2019: 384 million yen (-17.8%)

Quarterly net income
per share
Six months ended
September 30, 2020
Six months ended
September 30, 2019

Diluted quarterly net
income per share

yenyen28.54—26.12—The Company carried out a one-to-five split of its common stock effective on October 1, 2019. Quarterly net income per share wascalculated assuming that the split took place at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
million yen
million yen%Six months ended
45,88530,41366.2
September 30, 2020
Fiscal year ended March
45,67730,29366.3
31, 2020(Reference) Capital: Six months ended September 30, 2020: 30,387 million yen
Fiscal year ended March 31, 2020: 30,267 million yen–1–Net assets per shareyen
795.75780.68

2. Dividends

Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
Fiscal year ending
March 31, 2021
(Forecast)End of 1Q
yen

End of 2Q
yen—

100.00—

15.00

Annual dividends
End of 3Q
yenYear-end
yenTotal
yen

—

20.00

—

—

15.00

30.00

(Note) Revision of previously announced dividend targets during this reporting period: None
The Company carried out a one-to-five split of its common stock effective as of October 1, 2019. The year-end dividend figure for the fiscal
year ended March 31, 2020 takes this stock split into account and “-” is entered for the total annual dividends. The dividends for the fiscal
year ended March 31, 2020 include commemorative dividend for the Company’s 100th anniversary consisting of 50.00 yen per share asinterim dividend and 10.00 yen per share as year-end dividend.

3. Consolidated Performance Forecast for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)(% represents year-on-year change)
Net income
Net income per
Net sales
Operating income Ordinary income
attributable toshareowners of parent
million yen %million yen% million yen% million yen%yen
Full year
36,500 3.8
2,200 7.1
2,700 26.0
1,850 16.4
47.94
(Note) Revision of previously announced earnings forecasts during this reporting period: None–2–Notes(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve
changes in the scope of consolidation): None
Newly added companies: None (Company names: -) / Excluded companies: None (Company names: -)(2)

Use of special accounting methods for preparation of quarterly consolidated financial statements: None

(3)Changes in accounting policy, changes in accounting estimates, and retrospective restatements(i) Changes in accounting policy arising from revision of accounting standards, etc.:
None(ii) Changes in accounting policy other than those noted in (i) above:None(iii) Changes in accounting estimates:None(iv) Retrospective restatements:
None(4) Shares issued (common stock)(i)

Number of shares outstanding at
end of period (including treasuryshares)(ii) Number of shares held intreasury at end of period(iii) Average number of shares
outstanding during the period(quarter-to-date)2Q of fiscal year ending
March 31, 2021
2Q of fiscal year ending
March 31, 2021
2Q of fiscal year ending
March 31, 2021

40,000,000 shares

1,812,630 sharesFiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2020

40,000,000 shares

1,229,230 shares

2Q of fiscal year
38,512,603 shares ended March 31,38,407,295 shares

2020* This report is not subject to quarterly review procedures by certified public accountants or an auditing firm.
* Explanation of the appropriate use of earnings forecasts, and other special notes(Cautionary statement with respect to forward-looking statements)
Any forecasts and forward-looking statements given herein are based on information available as of this report’s
publication and on certain assumptions that are deemed reasonable and these forecasts are not guarantees of futureperformance.
Actual results may differ significantly from forecasts due to various factors. For the assumptions underlying theforecasts herein and other notice on the use of earnings forecasts, please refer to “1. Qualitative Information on
Quarterly Results: (3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated FinancialResults” on page 2 in the accompanying materials.
(How to obtain quarterly earnings supplementary explanatory materials)
The Company is scheduled to post the quarterly earnings supplementary explanatory materials on its website on
Thursday, November 5, 2020.
The Company has scheduled a financial results briefing session (conference call) for securities analysts on Thursday,
November 26, 2020.

–3–

Accompanying Material - Table of Contents
1. Qualitative Information on Quarterly Results ……………………………………………………………………………

5(1) Explanation About Operating Results ………………………………………………………………………………

5(2) Explanation About Financial Position …………………………………………………………………………………

6(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results ……

6

2. Quarterly Consolidated Financial Statements and Notes ……………………………………………………………

7(1) Quarterly Consolidated Balance Sheet ………………………………………………………………………………

7(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Incom………

9

Quarterly Consolidated Statement of Income
Six Months Ended September 30, 2020 ………………………………………………………………………

9

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended September 30, 2020 ………………………………………………………………………

10(3) Notes to Quarterly Consolidated Financial Statements ……………………………………………………………
(Going Concern Assumption) …………………………………………………………………………………

1111(Notes on significant changes in the amount of shareholders’ equity) …………………………………………

11(Use of special accounting methods for preparation of quarterly consolidated financial statements) ………

11(Changes in Accounting Policy) ……………………………………………………………………………………

11(Additional Information) ………………………………………………………………………………………………

11–4–

1. Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the six months ended September 30, 2020, global economy environment remained severe due to the impactof the novel coronavirus infection. Economic activities gradually resumed after the state of emergency was lifted, anda recovery in economy is anticipated. Nevertheless, there has been no significant decline in the number of infectedpatients and the situation continues to be unpredictable.
The construction-related industry, which has strong relations to the Group, faced impacts such as discontinuationand postponement of work at construction sites and curbs on new investments reflecting concerns about the future
following the government’s declaration of the state of emergency.
In spite of such circumstances, sales increased at the Nikko Group as those of the Asphalt Plant-Related Business
and Concrete Plant-Related Business in Japan grew, while overseas sales declined due to the impact of the spreadof the novel coronavirus infection.
In the six months ended September 30, 2020, consolidated net sales increased 6.3% from a year earlier to 18,225
million yen. Consolidated operating income totaled 1,000 million yen, up 4.2% year-on-year, consolidated ordinary
income totaled 1,588 million yen, up 53.5% year-on-year, and quarterly net income attributable to owners of parent
reached 1,099 million yen, up 9.6% year-on-year. Operating income on sales declined 0.1 percentage points
compared with the same period a year earlier to 5.5%. Consolidated new orders received in the six months underreview increased 13.0% year-on-year to 19,036 million yen. This is attributable to the continued strong performances
in Japan by the Asphalt Plant-Related Business and Concrete Plant-Related Business as well as a gradual recovery
in orders in China.
Results by segment are as follows.
<Asphalt Plant-Related Business>
While overseas sales declined year on year due to the impact of the novel coronavirus pandemic, the products andmaintenance business in Japan grew compared with the same period a year earlier. As a result, net sales of thebusiness increased 9.9% to 9,527 million yen from the same period a year earlier. New orders received in the period
under review increased compared with a year earlier, while order backlog declined year on year.

<Concrete Plant-Related Business>
Sales of both products and the maintenance business in Japan increased compared with the previous period. As aresult, net sales of the business increased 7.6% to 4,918 million yen from the same period a year earlier. New orders
received and order backlog in the period under review increased compared with a year earlier.

<Environment- and Conveyor-Related Business>
Net sales of the environmental products and conveyor products declined compared with a year earlier due to theimpact of the novel coronavirus pandemic. As a result, net sales of the business declined 21.8% to 1,059 million yen
from the same period a year earlier. New orders received and order backlog in the period under review increased
compared with a year earlier.

<Other Business>
Net sales of temporary construction materials and mobile plant business increased compared with the same perioda year earlier. As a result, net sales of the business increased 6.7% to 2,719 million yen from the same period a year
earlier. New orders received in the period under review increased compared with a year earlier, while order backlog
declined year on year.

–5–(2) Explanation About Financial Position
Total assets at the end of the reporting period was 45,885 million yen, increasing 208 million yen from the end of thelast consolidated fiscal year.
Current assets came to 30,569 million yen, declining 857 million yen from the end of the last consolidated fiscal year.
Main factors contributing to the decline are declines of 93 million yen in electronically recorded monetary claims, 439
million yen in inventories, and 111 million yen in other, while cash and cash equivalents rose 1,046 million yen andnotes and accounts receivable-trade increased 456 million yen. Noncurrent assets came to 15,316 million yen, up
1,066 million yen from the end of the previous consolidated fiscal year. Factors contributing to the change include anincrease of 132 million yen in buildings and structures, an increase of 111 million yen in machinery, equipment andvehicles, an increase of 567 million yen in land, and an increase of 157 million yen in investment securities as well
as a decrease of 43 million yen in other.
Liabilities totaled 15,472 million yen, increasing 88 million yen from the end of the last consolidated fiscal year. The
increase was due mainly to increases of 196 million yen in electronically recorded obligations, 335 million yen in
short-term loans payable, and 522 million yen in other, while notes and accounts payable-trade declined 295 million
yen and accounts payable-factoring fell 633 million yen.
Net assets came to 30,413 million yen, up 120 million yen from the end of the previous fiscal year. Factors contributing
to the change include an increase from recording of 1,099 million yen in net income attributable to owners of parent,a decline from payment of 775 million yen in dividends, and a decrease of 385 million yen due to purchase anddisposal of treasury stock.
As a result, equity ratio declined to 66.2% from 66.3% as of the end of the previous fiscal year.
(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results
There is no change in the performance forecast for the year ending March 31, 2021 that was disclosed on May 14,2020.

–6–2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(mil. yen)
As of March 31, 2020
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable-trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process and partly-finishedconstruction
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets–7–

As of September 30, 2020

12,622
9,902
1,709
935

11,576
9,445
1,802
1,091

4,473

4,590

1,237
560
(14)
31,4261,404
671(13)
30,569

7,362
431

8,295
471

4,341
11
12
953
1,287(150)
6,456
14,25045,677

4,499
11
11
934
1,243(149)
6,549
15,31645,885(mil. yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Accounts payable-factoring
Short-term loans payable
Income taxes payable
Accounts payable-other
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other businessTotal current liabilities
Long-term liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Retirement benefit-related liabilities
Other businessTotal noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Accumulated retirement benefit-related
adjustment
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets–8–

As of September 30, 2020

2,430
1,176
3,427
1,548
627
538
415
65
54
2,260
12,545

2,135
1,373
2,794
1,884
552
419
468
8
114
2,782
12,533

239
5
145
2,089
358
2,838
15,383

326
5
157
2,099
350
2,939
15,472

9,197
7,918
12,632(420)
29,328

9,197
7,926
12,956(805)
29,274

1,119

1,243

55

96(235)

(226)

939

1,112

25
30,29345,67725
30,41345,885

(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)Six Months Ended September 30, 2020

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other businessTotal non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of noncurrent assets
Foreign exchange losses
Compensation for damage
Other businessTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of investment securities
Total extraordinary loss
Quarterly income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly net income
Quarterly net income attributable to owners of parent(mil. yen)
Six Months Ended September Six Months Ended September
30, 2019
30, 2020(from April 1, 2019, to(from April 1, 2020, toSeptember 30, 2019)
September 30, 2020)
17,14018,225
12,414
13,441
4,725
4,783
3,766
3,783
959
1,000–9–

1
108
29
138

1
518
28
90639

26
028
4463
1,034

18
710
14
50
1,588

454
454

86
86

441,484552(70)
481
1,003
1,003

11
1,672
612
(38)
573
1,099
1,099

(Consolidated Statements of Comprehensive Income)Six Months Ended September 30, 2020

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Retirement benefit-related adjustment
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of parent
Quarterly comprehensive income attributable tonon-controlling interests(mil. yen)
Six Months Ended September Six Months Ended September
30, 2019
30, 2020(from April 1, 2019, to(from April 1, 2020, toSeptember 30, 2019)
September 30, 2020)
1,003
1,099

– 10 –(485)

123(140)7(618)
384

41
8173
1,272384

1,272-(0)(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
The Company has purchased 616,700 shares in treasury stock, in accordance with the resolution by the Board ofDirectors Meeting held on May 22, 2020. It has disposed 35,800 shares of treasury stock as restricted stockcompensation for the Company’s directors. As a result, capital surplus and treasury stock increased 7 million yenand 385 million yen respectively during the six months under review.
(Use of special accounting methods for preparation of quarterly consolidated financial statements)
Not applicable(Changes in Accounting Policy)
Not applicable(Additional Information)
Not applicable– 11 –