Financial Results for Third Quarter of Fiscal Year Ending March 31, 2024
[Japanese GAAP] (Consolidated Data)
February 13, 2024
Company Name: Nikko Co., Ltd.
Stock Code:6306
URL http://www.nikko-net.co.jp
Representative Representative Director and President
Director and Vice President/
For inquiries:
General Manager of Administrative Division
Scheduled date for filing the quarterly report: February 14, 2024
Quarterly earnings supplementary explanatory materials: Yes

Stock Exchange Listing: Tokyo Stock Exchange
Masaru Tsuji
Hiroshi Fujii

Tel: +81-78-947-3141

Scheduled date for cash dividends: –Quarterly financial results briefing session: Yes (for institutional investors, analysts, and newspaper reporters)(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for Third Quarter of Fiscal Year Ending March 31, 2024 (April 1, 2023 - December 31, 2023)(1) Consolidated Operating Results (cumulative)(% represents year-on-year change rate from the same period)
Quarterly net income
Net sales
Operating income
Ordinary income
attributable to ownersof parent
million yen%
million yen%
million yen%million yen%
Nine months ended
27,619
1.8
718
95.6
975
84.3
594 165.0
December 31, 2023
Nine months ended
27,129(0.1)
367 (64.2)
529 (55.7)
224 (74.6)
December 31, 2022
Note: Comprehensive income:Nine months ended December 31, 2023

1,547 million yen (622.5%)

Nine months ended December 31, 2022

214 million yen (-76.2%)

Quarterly net income
per share

Diluted quarterly net
income per share

yenyen

15.52

-

5.86

-

Total assets
million yen
59,64052,127

Net assets
million yen
32,036
31,604

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022
(2) Consolidated Financial Position

As of December 31, 2023
As of March 31, 2023
(Reference) Capital:

As of December 31, 2023

32,149 million yen

As of March 31, 2023

31,644 million yen

Equity ratio
%
53.9
60.7

Net assets per shareyen
838.80826.73

2. Dividends
Annual dividends
End of 1Q

End of 2Q

End of 3Q

Year-end

Total

yen

yen

yen

yenyenFiscal year ended March 31, 2023

-15.00-15.0030.00

Fiscal year ending March 31, 2024
Fiscal year ending March 31, 2024
(forecasts)-15.00

15.00

30.00

(Note) Revision of previously announced dividend targets during this reporting period: None-1-3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)(% represents year-on-year change)
Net income
attributable toowners of parent
million yen% million yen% million yen% million yen%
Full year
44,000 10.9
1,900 84.8
1,900 51.3
1,20017.6(Note) Revision of previously announced earnings forecasts during this reporting period: NoneNet sales

Operating incomeOrdinary income

Net income pershareyen31.36*Notes(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve
changes in the scope of consolidation): None

(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 issued at end ofperiod (including treasury stock)(ii) Number of shares held in treasury at
end of period

As of December 31,
2023

40,000,000 shares

As of March 31,
2023

40,000,000 shares

As of December 31,
2023

1,671,526 shares

As of March 31,
2023

1,723,305 shares(iii) Average number of shares outstanding Nine months ended
December 31, 2023
during the period (quarter-to-date)

38,307,164 shares

Nine months ended
December 31, 2022

38,255,736 shares*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 future
performance.
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
Tuesday, February 13, 2024.
The Company has scheduled a financial results briefing session (live streaming) for securities analysts on Tuesday,March 5, 2024.

-2-Accompanying Material – Table of Contents
1. Qualitative Information on Quarterly Results ........................................................................................................

2(1) Explanation About Operating Results ..............................................................................................................

2(2) Explanation About Financial Position ...............................................................................................................

2(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results ........

3

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

4(1) Quarterly Consolidated Balance Sheet ............................................................................................................
(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income .............................................................................................................................................................
Quarterly Consolidated Statement of Income

4Nine Months Ended December 31, 2023...............................................................................................

66

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31, 2023...............................................................................................

7(3) Notes to Quarterly Consolidated Financial Statements....................................................................................

8(Going Concern Assumption) .........................................................................................................................

8(Notes on Significant Changes in the Amount of Shareholders’ Equity) .........................................................

8(Use of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements) ........

8(Changes in Accounting Policy) .....................................................................................................................

8-3-

1. Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the nine months ended December 31, 2023, the U.S. began exploring the timing to end the interest rate
hikes and start rate cuts to enable a soft landing of its economy. In Japan, wage increases, as well as the timing for
the Bank of Japan to end the zero-interest-rate policy, gained attention, as passing on of higher raw material costs
to selling prices continued and the impact of price increases on consumers grew larger. Meanwhile, the real estateindustry-led economic slowdown, which began in last spring, continued in China, causing concerns over its impact
on the global economy.
Under such conditions, even though the Group was affected by the impact of China’s economic deceleration, salesof the concrete plant-related business were strong and the number of mobile plants supplied for projects to support
restoration of Ukraine increased. As a result, consolidated net sales of the Nikko Group came to 27,619 million yen
for the period under review (up 1.8% from the same period a year earlier).
In terms of profits, consolidated operating income totaled 718 million yen (up 95.6% from the same period a yearearlier) reflecting the contribution from Matsuda Kiko, K.K., which joined the Group in July, as well as the increasein net sales despite the impact of overseas sales and the increase in personnel costs. Consolidated ordinary
income came to 975 million yen (up 84.3% from the same period a year earlier) and quarterly net income
attributable to owners of parent totaled 594 million yen (up 165.0% from the same period a year earlier).
Operating results by segment are as follows.
Starting from the third quarter of the fiscal year ending March 31, 2024, the Company added the crusher-related
business and contract-based manufacturing business, which were previously included in the “Other Business,” toits reportable segments as their quantitative importance increased. Accordingly, it carried out comparison andanalysis for the nine months ended December 31, 2023, based on the new segments.
(i) Asphalt Plant-Related BusinessNet sales of products in Japan increased compared with the same period a year earlier. Net sales of themaintenance business in Japan and overseas net sales decreased compared with the same period a year earlier.
As a result, net sales of the business declined 23.0% to 10,080 million yen from the same period a year earlier.
New orders received and order backlog in the period under review increased compared with the same period ayear earlier.
(ii) Concrete Plant-Related BusinessNet sales of both products and the maintenance business in Japan increased compared with the same period ayear earlier. Net sales of products abroad declined compared with the same period a year earlier. As a result, net
sales of the business increased 18.7% to 7,886 million yen from the same period a year earlier. New orders
received and order backlog in the period under review increased compared with the same period a year earlier.
(iii) Environment- and Conveyor-Related BusinessNet sales of conveyor products increased compared with the same period a year earlier. Net sales of environmental
materials declined compared with the same period a year earlier. As a result, net sales of the business increased
6.9% to 2,286 million yen from the same period a year earlier. New orders received and order backlog in the period
under review increased compared with the same period a year earlier.
(iv) Crusher-Related BusinessNet sales of crushers increased compared with the same period a year earlier. As a result, net sales of thebusiness increased 100.2% to 2,745 million yen from the same period a year earlier. New orders received in theperiod under review increased compared with a year earlier, while order backlog declined year on year.
(v) Contract-Based Manufacturing BusinessNet sales of products manufactured based on contracts increased compared with the same period a year earlier.
As a result, net sales of the business increased 47.8% to 1,667 million yen from the same period a year earlier.
New orders received and order backlog in the period under review increased compared with the same period ayear earlier.
(vi) Other BusinessNet sales of temporary construction materials increased compared with the same period a year earlier. Net sales ofhand tools decreased from the same period a year earlier. As a result, net sales of the business increased 7.0% to2,953 million yen from the same period a year earlier. New orders received and order backlog in the period underreview increased compared with the same period a year earlier.
(2) Explanation About Financial Position
Total assets at the end of the reporting period were 59,640 million yen, increasing 7,512 million yen from the end of
the previous fiscal year.
Current assets came to 38,883 million yen, up 5,159 million yen from the end of the previous consolidated fiscalyear. Main factors contributing to the change are increases of 3,173 million yen in cash and cash equivalents, 2,764
million yen in work in process, and 1,111 million yen in merchandise and finished goods as well as decreases of
920 million yen in accounts receivable-trade and 558 million yen in notes receivable-trade. Noncurrent assets cameto 20,756 million yen, up 2,352 million yen from the end of the previous consolidated fiscal year. Main factors
contributing to the change are increases of 1,391 million yen in property and equipment and 1,350 million yen in
investment securities as well as a decline of 425 million yen in deferred tax assets.
Liabilities totaled 27,603 million yen, up 7,079 million yen from the end of the previous fiscal year. Main factors
contributing to the change are increases of 2,521 million yen in contract liabilities, 2,414 million yen in long-termloans, and 740 million yen in short-term loans as well as a decline of 240 million yen in provision for bonuses.
Net assets came to 32,036 million yen, up 432 million yen from the end of the previous consolidated fiscal year.
Main factors contributing to the change are an increase of 955 million yen in valuation difference on available-forsale securities and a decline of 554 million yen in retained earnings.

-4-

As a result, equity ratio dropped to 53.9% from 60.7% 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, 2024 that was disclosed on May 15,2023.

-5-2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and cash equivalents
Notes receivable-trade
Accounts receivable-trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Buildings and structures (net)LandConstruction in progress
Other (net)Total property, plant and equipment
Intangible assets
Goodwill
Other
Total 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-6-

As of December 31, 2023

10,317
2,357
6,645
2,233
1,794
7,423
1,657
1,294
(1)
33,723

13,491
1,799
5,724
2,166
2,906
10,188
1,591
1,016
(1)
38,883

5,945
3,878
236
1,779
11,839

6,070
4,197
1,195
1,766
13,230130
889
1,020

204
989
1,193

3,488
7
14
981
1,183
(130)
5,544
18,404
52,127

4,838
106
12556
948
(129)
6,332
20,756
59,640(million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Accounts payable-factoring
Short-term loans payable
Income taxes payable
Accounts payable-otherAdvances received
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other
Total current liabilities
Long-term liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Retirement benefit-related liabilities
Other
Total 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
Deferred gains or losses on hedges
Accumulated retirement benefit-related
adjustment
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-7-

As of December 31, 2023

3,012
858
2,355
3,312
265
644
17
3,713
417
76
172
492
15,338

3,578
1,252
2,717
4,053
240
615
17
6,234
176
61
179
758
19,886

2,449
0
235
2,166
333
5,184
20,523

4,864
126
195
2,199
331
7,717
27,603

9,197
7,934
13,628(760)
29,999

9,197
7,946
13,073(738)
29,479

1,177

2,133

582
-

610
31

(115)

(104)

1,644

2,670

(40)
31,604
52,127(113)
32,036
59,640(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Nine Months Ended December 31, 2023)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Compensation for damage
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sale of non-current assets
Total extraordinary income
Extraordinary loss
Loss due to the spread of COVID-19
Other
Total extraordinary loss
Quarterly income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly net income
Quarterly loss attributable to non-controlling interests
Quarterly net income attributable to owners of parent

Nine month ended
December 31, 2022
(from April 1, 2022
to December 31, 2022)
27,12919,924
7,204
6,837
367

(million yen)
Nine month ended
December 31, 2023
(from April 1, 2023
to December 31, 2023)
27,61919,598
8,020
7,302
718

2100
86
43
232

1137
109
46
70
365

55
41070
529

83
12
11108
975

00

67
8
76

23
23506
209
113
322
183
(41)
224

00
1,051
404
110
515
536
(57)
594-8-(Quarterly Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31, 2023)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
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

Nine month ended
December 31, 2022
(from April 1, 2022
to December 31, 2022)
183(million yen)
Nine month ended
December 31, 2023
(from April 1, 2023
to December 31, 2023)
536

44

955

(23)
930
214

31
1210
1,010
1,547

259

1,620

(44)

(72)

-9-

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)Not applicable(Use of special accounting methods for preparation of quarterly consolidated financial statements)
Not applicable(Changes in Accounting Policy)
Not applicable- 10 -