Financial Results for the Fiscal Year Ended March 31, 2021 [Japanese GAAP](Consolidated Data)

May 14, 2021
Stock Exchange Listing: Tokyo Stock Exchange
URL http://www.nikko-net.co.jp
Masaru Tsuji

Company Name:
Stock Code:
Representative

Nikko Co., Ltd.
6306
Representative Director and PresidentManaging Director/General Manager of
For inquiries:
Administrative Division
Scheduled date of Ordinary
June 24, 2021
General Shareholders’ Meeting:
Scheduled date for filing theJune 25, 2021
annual securities report:
Full-year earnings supplementary explanatory materials:
Financial results briefing session:

Hiroshi Fujii

TEL:078-947-3141

Scheduled date forcash dividends:

June 25, 2021

Yes
Yes (for analysts)(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)(1) Consolidated Operating Results(% represents year-on-year change)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
million yen%
million yen%
million yen%
million yen%
Fiscal year ended
37,866
7.7
2,302
12.1
2,973
38.8
2,082
31.1
March 31, 2021
Fiscal year ended
35,151
10.6
2,053
43.9
2,142
35.9
1,588
18.1
March 31, 2020
Note:
Fiscal year
Fiscal year ended
Comprehensive
ended March
2,885 million yen 387.2%)
592 million yen (-2.6%)
March 31, 2020
income:31, 2021
Net income per share
yen
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Diluted net income
Ordinary profit to
Return on equity
per share
total assetsyen%%Operatingmargin
%

54.31

–

6.8

6.3

6.1

41.17

–

5.2

4.8

5.8

The Company carried out a one-to-five split of its common stock effective on October 1, 2019. Net income per share was calculated
assuming that the split took place at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets
Net assets
million yen
million yen
As of March 31, 2021
48,69731,451
As of March 31, 2020
45,67730,293(Reference) Capital: As of March 31, 2021 31,427 million yen

Equity ratio
%
64.5
66.3
As of March 31, 2020

Net assets per shareyen
823.01780.6830,267 million yen

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

(3) Consolidated Cash Flows
Cash flows from
Cash flows from investing
operating activities
activities
million yen
million yen
Fiscal year ended
2,784(1,867)
March 31, 2021
Fiscal year ended
3,809
(609)
March 31, 2020

– 1 –Cash flows fromfinancing activities
million yen

Cash and cash equivalents
at end of year
million yen(1,129)12,444(868)

12,575

2. Dividends
Total
dividends

Annual dividends

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2021

End
of 1Q
yen

End of
2Q
yen

End
of 3Q
yen

Yearendyen–

100.00

–

–

15.00

–

Dividend
Rate of total
payout ratio
dividends to net(consolidated) assets (consolidated)

Total
yen

million yen

%

%

20.00

–

1,550

97.6

5.1

18.00

33.00

1,260

60.5

4.1

30.00
Fiscal year ending March
–
15.00
–
15.00
67.4
31, 2022 (Forecasts)
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 Ending March 31, 2022 (April 1, 2021 - March 31, 2022)(Percentages indicate year-on-year changes from full fiscal year and first half of the previous fiscal year, respectively)
Net income per shareper share
Net sales
Operating income
Ordinary income attributable to owners
Net incomeof parent
million yen% million yen% million yen% million yen%yen
2Q (first half)
19,000
4.3
1,100
10.0
1,300 (18.1)
850 (22.7)
22.16
Full year
39,0003.02,300 (0.1)
2,500 (15.9)
1,700 (18.3)
44.33

– 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
(2) Changes in accounting policy, changes in accounting estimates, and retrospective restatements(i)
Changes in accounting policy arising from revision of accounting standards, etc.: Yes(ii) Changes in accounting policy other than those noted in (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None
(Note) Please refer to (5) Notes to Consolidated Financial Statements (Changes in Accounting Policy) of
3. Consolidated Financial Statements and Notes to the Statements on page 15 of Accompanying Material
for details.
(3) Shares issued (common stock)(i) Number of shares issued at end of
period (including treasury stock)(ii) Number of shares held in treasury
at end of period(iii) Average number of shares
outstanding during the period

As of March
31, 2021
As of March
31, 2021
As of March
31, 2021

As of March
31, 2020
As of March
1,814,260 shares
31, 2020
As of March
38,349,338 shares
31, 2020
40,000,000 shares

40,000,000 shares
1,229,230 shares
38,589,549 shares* This report is exempt from audit 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 the forecasts herein and other notice on the use of earnings forecasts, please refer to(1) Overview of Operating Results for Fiscal Year Ended March 31, 2021 in 1. Overview of Operating Results, etc. on
page 2 in the accompanying materials.
(How to obtain the earnings supplementary explanatory materials and the date of the financial results briefing session)
The Company is scheduled to post the earnings supplementary explanatory materials on its website on Friday, May 14,
2021.
The Company has scheduled a financial results briefing session (live streaming) for analysts on Monday, June 7, 2021.

– 3 –Accompanying Material – Table of Contents
1.

Overview of Operating Results, etc. .......................................................................................................................... 5(1) Overview of Operating Results for Fiscal Year Ended March 31, 2021 ..................................................................... 5(2) Overview of Financial Conditions for Fiscal Year Ended March 31, 2021 .................................................................. 6(3) Basic Policy Concerning Profit Distribution and Dividends for the Current Term and Next Term ............................... 8(4) Risks Associated with Business, etc. ......................................................................................................................... 8

2.

Status of the Nikko Corporate Group ......................................................................................................................... 93.

Basic Approach to the Selection of Accounting Standards ...................................................................................... 10

4.

Consolidated Financial Statements and Notes to the Statements ........................................................................... 11(1) Consolidated Balance Sheets .................................................................................................................................. 11(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ............................. 13(Consolidated Statements of Income) ...................................................................................................................... 13(Consolidated Statements of Comprehensive Income)............................................................................................ 14(3) Consolidated Statements of Changes in Equity ....................................................................................................... 15(4) Consolidated Statements of Cash Flows ................................................................................................................. 17(5) Notes to Consolidated Financial Statements ........................................................................................................... 18(Going Concern Assumption) ................................................................................................................................... 18(Changes in Accounting Policy) ............................................................................................................................... 18(Change in the method of presentation) .................................................................................................................. 18(Segment Information) ............................................................................................................................................. 19(Per Share Information) ........................................................................................................................................... 23(Significant Subsequent Events) .............................................................................................................................. 24

5.

Other Information ..................................................................................................................................................... 25

– 4 –

1.

Overview of Operating Results, etc.
(1)

Overview of Operating Results for Fiscal Year Ended March 31, 2021
(i) Operating Results for Fiscal Year Ended March 31, 2021
During the fiscal year under review, the Japanese as well as global economies were unable to avoid a significant
slowdown due to the impact of the lockdown imposed by various countries in response to the spread of the novel
coronavirus infections and the state of emergency declared by Japan as a measure to prevent the spread of theinfections. While expectations grow for the pandemic to subside with the spread of vaccination and for a recovery
in economic activities, the outlook continues to be unclear given the concerns over the resurgence of the infections
with coronavirus variants.
Under such circumstances, however, the construction-related industry, to which the Nikko Group is closely related,
so far has not been much affected directly in Japan and has performed steadily. The Company expects the impact
on the Japanese construction-related industry to continue to be small.
In the current fiscal year, which is the second year of the three-year Medium-Term Management Plan, net sales
totaled 37,800 million yen exceeding the target of 36,500 million yen, while operating income came to 2,300 million
yen, lower than the target of 2,600 million yen. Compared with the net sales target of 38,000 million yen andoperating income target of 3,000 million yen for the final fiscal year, the Company expects net sales of
39,000 million yen and operating income of 2,300 million yen, and the profitability remains as an issue. In
particular, while the Japanese market share of the Company’s mainstay Asphalt Plant-Related Business is high at
70%, the operating margin of the business for the current fiscal year remained largely unchanged from a year
earlier at 6.4%, the lowest of all segments. At the same time, net sales have been exceeding the target thanks tomore-than-expected growth of sales in new businesses such as mobile plants and waterproof boards as well as anincrease in sales of the maintenance service business in Japan. Moreover, the Company has been steadily taking
measures to achieve the Long-term Basic Policies formulated in the previous fiscal year, namely, to (i) improve
profit margin in Japan to 10% by strengthening the domestic revenue base, (ii) double overseas sales from
4.5 billion yen by establishing business bases in the ASEAN region, (iii) promote new businesses, build a pillar withnew products in the industrial and construction machinery fields and generate 10.0 billion yen in net sales of the
new businesses, (iv) significantly improve labor productivity through work-style reform of centralization of office
work and utilization of IoT and AI, and (v) set forth ROE as the KPI and achieve 8% or higher in ROE andsimultaneously enhance returns to shareholders .
As for the Company’s operating results for the period under review, net sales of the Asphalt Plant-Related
Business, the Company’s mainstay business, increased in Japan compared with the previous year. The increase isthanks to continued strong appetite for capital investment supported by robust performance by large road paving
companies. Further, net sales of the Concrete Plant-Related Business rose compared with a year earlier. This wasdue to an increase in demand for replacement of aged plants given rising ready-mixed concrete market price.
Overseas, net sales declined as a result of sales activities becoming restricted significantly in markets other thanChina. Also, the decline in net sales of the Asphalt Plant-Related Business in China remained small thanks to theearly containment of the novel coronavirus infections.
As a result of these business activities, Nikko Group’s consolidated operating results are as follows.
Net sales for the period under review increased 7.7% to 37,866 million yen compared with a year earlier, as sales
at the Asphalt Plant-Related Business, Concrete Plant-Related Business, and Other Business increased, while
those of Environment- and Conveyor-related Business declined.
In terms of profits, consolidated operating income increased 12.1% from a year earlier to 2,302 million yen,reflecting the sales growth. Consolidated ordinary income rose 38.8% compared with a year earlier to 2,973 million
yen and net income attributable to owners of parent increased 31.1% from a year earlier to 2,082 million yen.
Overview of operating results by segment is as follows.
<Asphalt Plant-Related Business>
Net sales of the Asphalt Plant-Related Business in Japan rose 19.8% compared with a year earlier to
15,790 million yen, as net sales of both products and maintenance business increased from a year earlier.
Overseas net sales fell 15.2% compared with a year earlier, as both sales in China and exports declined from ayear earlier. As a result, net sales of the business rose 11.1% from a year earlier to 19,467 million yen. New orders
received and order backlog in the period under review increased compared with a year earlier.
<Concrete Plant-Related Business>
Net sales of the Concrete Plant-Related Business rose 0.6% compared with a year earlier to 9,212 million yen, as
net sales of maintenance business increased from a year earlier, offsetting a decline in those of products. 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 environmental products declined 24.6% compared with a year earlier. Net sales of conveyor products
declined 7.3% compared with a year earlier. As a result, net sales of the business declined 9.3% from a year earlier– 5 –to 2,390 million yen. New orders received and order backlog in the period under review increased compared with ayear earlier.
<Other Business Such as Temporary Construction Materials and Hand Tools>
Net sales of temporary construction materials rose 2.6% compared with a year earlier. Net sales of hand tools
increased 2.9% compared with a year earlier. Net sales of crushers fell 23.5% compared with a year earlier. Net
sales of other businesses increased 33.0% compared with a year earlier as the mobile business and waterproof
board business grew significantly. As a result, net sales of the business rose 16.4% from a year earlier to
6,796 million yen. New orders received and order backlog in the period under review increased.
Net sales by business segment (comparison with the previous fiscal year)
Asphalt Plant- Concrete Plant- Environment- andRelatedRelatedConveyor-Related
Business
Business
Business
Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2020

Net sales (mil. yen)
Share (%)
Net sales (mil. yen)
Share (%)

Other
business

Total

19,467

9,212

2,390

6,796

37,866

51.4

24.3

6.3

18.0

100

17,518

9,158

2,634

5,840

35,151

49.8

26.1

7.5

16.6

100

Note: 1. Net sales are rounded down to the nearest million yen.
2. Shares are rounded to the first decimal place.
(ii) Future outlook
The impact of the coronavirus pandemic is expected to be relatively small on the construction-related business,
which is the Nikko Group’s business domain. In addition, once the coronavirus pandemic ends, the publicconstruction investment is expected to grow as part of economic measures.
Overseas, on the other hand, infrastructure investment continues to be active in China, the mainstay market, andthe market environment such as further tightening of environmental regulations and the growing popularity ofrecycled mixture, where the Company can leverage the technological edge it has developed in Japan, is expected
to continue for the time being. In the ASEAN region, which the Company expects to be the future growth market, it
will proactively develop the market through Nikko Asia (Thailand) Co., Ltd. in Thailand.
For the fiscal year ending March 31, 2022, the Company expects to achieve consolidated net sales of
39,000 million yen, operating income of 2,300 million yen, ordinary income of 2,500 million yen, and net income
attributable to owners of parent of 1,700 million yen.
(2)

Overview of Financial Conditions for Fiscal Year Ended March 31, 2021
(i)

Assets, Liabilities, and Net Assets
Total assets at the end of the fiscal year (March 31, 2021) amounted to 48,697 million yen, an increase of
3,020 million yen from the end of the previous fiscal year.
Current assets came to 32,381 million yen, increasing 954 million yen from the end of the last consolidated fiscal
year. Main changes include an increase of 628 million yen in notes and accounts receivable-trade, an increase of
555 million yen in inventories, a decline of 131 million yen in cash and cash equivalents, and a 232 million yen
decline in electronically recorded monetary claims.
Noncurrent assets came to 16,315 million yen, up 2,065 million yen from the end of the previous consolidated
fiscal year. Factors contributing to the change include an increase of 343 million yen in buildings and structures, anincrease of 261 million yen in machinery, equipment and vehicles, an increase of 733 million yen in land, anincrease of 466 million yen in construction in progress, and a decrease of 161 million yen in deferred tax assets.
Liabilities totaled 17,246 million yen, increasing 1,862 million yen from the end of the last consolidated fiscal year.
The increase was due mainly to an increase of 639 million yen in short-term loans, an increase of 226 million inaccounts payable, an increase of 1,349 million yen in advances received, a decrease of 161 million yen inelectronically recorded obligations, and a decrease of 621 million yen in accounts payable-factoring.
Net assets came to 31,451 million yen, increasing 1,158 million yen from the end of the last consolidated fiscal
year. Factors contributing to the change include an increase from recording of 2,082 million yen in income
attributable to owners of parent, an increase in valuation difference on available-for-sale securities of 473 million
yen, a decrease due to dividend payment of 1,348 million yen, and a decline from payment of 400 million yen forpurchase of treasury stock.
As a result, equity ratio dropped to 64.5% from 66.3% at the end of the previous fiscal year.

– 6 –(ii) Cash Flows
Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2020

Cash flow from operating activities (mil. yen)

2,784

3,809

(1,025)

Cash flow from investing activities (mil. yen)

(1,867)(609)(1,257)

Cash flows from financing activities (million yen)

(1,129)

(868)

(260)

Effect of exchange rate changes on cash and cash
equivalents (million yen)

80

(55)

136

Net increase (decrease) in cash and cash equivalents(million yen)

(131)

2,275

(2,407)

12,575

10,3002,275

12,444

12,575(131)

Cash and cash equivalents at beginning of year
(million yen)
Cash and cash equivalents at end of year (million yen)

ChangeCash provided by operating activities totaled 2,784 million yen (compared with 3,809 million yen in cash provided
by operating activities in the previous fiscal year). Major items in cash flow from operating activities include
3,045 million yen in net income before income taxes, 677 million yen in depreciation and amortization, 548 million
yen in interest and dividends income received, and 1,281 million yen in advances received as well as 72 million
yen in gain on sales and valuation of investment securities, 359 million yen in increase in inventories, 627 million
yen in decrease in notes and accounts payable-trade, and 1,105 million yen in income taxes paid.
Cash used in investing activities totaled 1,867 million yen (compared with 609 million yen in cash used in investing
activities in the previous fiscal year). Major items in cash flow from investing activities include 579 million yen inproceeds from sales and redemption of investment securities as well as 2,414 million yen in purchase of property,
plant and equipment and intangible assets.
Cash used in financing activities totaled 1,129 million yen (compared with 868 million yen in cash used in financing
activities in the previous fiscal year). Major items in cash flow from financing activities include 1,345 million yen in
cash dividends paid.
As a result, consolidated cash and cash equivalents at the end of the fiscal year under review decreased by
131 million yen from the end of the previous fiscal year to 12,444 million yen.
Changes in cash flow-related indicators
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

67.5

69.2

66.3

64.5

40.2

42.0

51.7

57.3

Cash flow to interest-bearing debt
(years)

6.6

-

2.5

0.9

Interest coverage ratio (times)

6.5

-

82.4

75.2

Equity ratio (%)
Return on equity based on market
value (%)

Notes:

Return on equity: Total equity/Total assets
Return on equity based on market value: Market valuation/Total assets
Cash flow to interest-bearing debt: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest expenses* All indicators are calculated based on consolidated figures.
* Market valuation is calculated by multiplying the number of shares issued at end of period (excluding
treasury stock) with the closing stock price of the period.
Cash flows from operating activities in the Consolidated Statements of Cash Flows are used for operating
cash flow. Interest-bearing debt includes all liabilities recorded on the Consolidated Balance Sheets on
which interest is paid. Interest paid in the Consolidated Statements of Cash Flows is used for Interest
expenses.
– 7 –

(3)

Basic Policy Concerning Profit Distribution and Dividends for the Current Term and Next Term
The Company identifies the return of profits to shareholders as an important management goal, and in principle,
pays dividends continuously by taking into account the business performance in the period. It is the Company’s basic
policy to strive to strengthen its management foundation and enhance corporate value to meet the shareholders’expectations and make decisions on return of profits from a comprehensive perspective including enhancement ofinternal reserves.
The Company expects to propose dividends of 18.00 yen per share at the 158th Ordinary General Shareholders’Meeting scheduled on June 24, 2021.
For the next fiscal year, the Company plans annual dividend of 30.00 yen per share (dividend payout ratio of 67.4%),
consisting of interim and year-end dividends of 15.00 yen per share each.

(4)

Risks Associated with Business, etc.
(1) Risks associated with the Asphalt Plant-Related Business in Japan<Risk of insufficient differentiation with competitors>
The asphalt plant market in Japan is an oligopoly where the Company and two other competing companies accountfor almost 100% of the market. The Company’s market share is more than 70% and its positioning as the top
manufacturer has not changed for years. To maintain the overwhelming position of the top manufacturer into the
future, the Company has been differentiating itself from others by refining its product development capability andretaining and strengthening a meticulous maintenance service system. However, there is a possibility that theappeal of this differentiation for customers becomes weak if the Company is unable to engage in sufficient productdevelopment or if competitors develop meticulous maintenance systems that compare favorably with theCompany’s system.
<Risks of foreign manufacturers entering the Japanese market>
In recent years, no foreign manufacturer has entered the asphalt plant market in Japan, but Chinese and Korean
manufacturers have been gradually acquiring technical strengths and may be planning to enter the Japanesemarket. While it would not be easy for foreign manufacturers to enter the Japanese market without sufficientmaintenance structures, there is a possibility that they would seriously consider entering the Japanese market
when the growth in their respective market has stalled. If foreign manufacturers join the Japanese market, thecompetition among manufacturers may intensify.
<Risks of the Company’s technology innovation being too slow to respond to environmental restrictions>
If environmental restrictions on fossil fuels such as A fuel oil, fuel for combustion equipment of asphalt plants, aswell as gas become stricter, the existing technology will become obsolete and require innovation. The Company
has been working on development of combustion equipment-related technology assuming that environmental
restrictions would become stricter in the future, and there is a possibility that its technology innovation will not beable to keep pace with the faster-than-expected speed of the tightening of restrictions.
<Risks of shrinking market due to reorganization of the road paving industry>
Two major road paving companies signed an agreement on capital and business tie-up and this might accelerate
the reorganization in the road pavement industry. If industrial reorganization results in further consolidation ofasphalt plants, the market may shrink.
(2) Risks associated with the overseas business<Risks of intensifying competition in the high-end asphalt plant market in China>
The Company has secured a certain position in the high-end model category in the asphalt plant market in China
and has been steadily recording sales and profit every year. So far, the competitors in the high-end market are two
European companies in addition to one or two top Chinese manufacturers, and competition has been mild.
However, Chinese companies in general have been gaining technical strength and the competition may intensify ifmany Chinese manufacturers enter the high-end market in the future.
<Risks of failing to achieve sales plan in the ASEAN market>
As part of its growth strategy, the Company, in fiscal year 2020, established a manufacturing subsidiary in Thailandand decided to make investments exceeding 1 billion yen in the plant. The premise of the investment is that theCompany can sell its asphalt plants steadily in Thailand and other ASEAN countries. However, if the Company’splants do not gain enough support from customers in the ASEAN countries including Thailand and the Company
cannot sell the planned number of plants, the manufacturing plant would record losses, running a risk of impairmentof the plant.
(3) Risks associated with reduction in budget for public investment
In the past, when political power shifted to the Democratic Party of Japan from the Liberal Democratic Party, “fromconcrete to people” became the former’s slogan and many of the Company’s customers began curbing capital
investment. As a result, the Company’s sales declined significantly. If, in the future, a political party with a policy
aimed at controlling public investment replaces the Liberal Democratic Party government, the Company’s
customers may start curbing investments in a similar manner as when the administration changed to the
Democratic Party of Japan last time.
– 8 –

2.

Status of the Nikko Corporate GroupThe Nikko corporate group consists of the Company and 10 subsidiaries. The principal business of Nikko Group is
manufacture and distribution of asphalt plants, concrete plants, and environment and conveyor machinery, and it is also
engaged in real estate leasing and sales of housing renovation, etc.
In the segment information by type of business, the asphalt plant business is classified as the Asphalt Plant-Related
Business, concrete plant business as the Concrete Plant-Related Business, the environment and conveyor business as
the Environment- and Conveyor-Related Business and the other business including temporary construction materials
and hand tools as the Other Business.
Category

Main products

Main companies

Asphalt PlantRelated Business

Asphalt plants
Recycling plants
Mixture silos
Electronic control devices, plant
management system

Concrete PlantRelated Business

Concrete plants
Compact concrete plants
Concrete pumps
Electronic control devices, plant
management system
Concrete manufacturing plant facilities, etc.
Belt conveyors, conveyors for facilities,
beverage container recycling plants
Soil remediation plant, plastic recycling plant
Pipe scaffoldings, steel gangplanks, pipe
supports
Temporary aluminum staircases
Shovels, spades
Small-sized concrete mixers, mortar mixers
Sluices, waterproof boards, crushers
Real estate leasing, construction machinery
product leasing
Sales of housing renovation

Environment- andConveyorRelated Business
Other business

The group organizational chart is shown in the following page.

– 9 –Nikko Co., Ltd.
Nikko Electronics Co., Ltd.
Nikko Machinery Co., Ltd.
Nikko (Shanghai) Construction Machinery Co., Ltd.
Nikko Asia (Thailand) Co., Ltd.
Nikko Nilkhosol Co., Ltd.
Nikko Co., Ltd.
Nikko Electronics Co., Ltd.
Nikko Machinery Co., Ltd.
Nikko (Shanghai) Construction Machinery Co., Ltd.

Nikko Co., Ltd.

Nikko Co., Ltd.
Nikko Machinery Co., Ltd.
Tombo Industry Co., Ltd.
Nikko Sec Co., Ltd.
Nikko Kosan Co., Ltd.
Maekawa Kogyosho Co., Ltd.
Maekawa Shanghai Qiankun Machinery Co., Ltd.
Nikko Baumaschinen GmbH3.

Basic Approach to the Selection of Accounting Standards
The Nikko Group plans to continue applying the Japanese accounting standards for the time being taking into
consideration availability of periodical comparison of its consolidated financial statements and availability of comparison
among other companies.
It plans to respond appropriately to the application of the International Financial Reporting Standards (IFRS) by taking
into consideration the situation in Japan and overseas.

– 10 –

4.

Consolidated Financial Statements and Notes to the Statements(1)

Consolidated Balance Sheets(million 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
Buildings and structures (net)
Machinery, equipment and vehicles (net)
Tools, furniture and fixtures (net)Land
Lease assets (net)Right-of-use assets (net)
Construction in progress
Total property, plant and equipment
Intangible assets
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– 11 –

As of March 31, 2021

12,622
9,902
1,709
935

12,491
10,530
1,477
1,494

4,473

4,236

1,237
560
(14)
31,426

1,470
685
(5)
32,381

3,495
817
353
2,472
2
68
152
7,362

3,839
1,078
365
3,205
2
71
619
9,183

431
431

660
660

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

4,528
11
11
792
1,259
(131)
6,472
16,315
48,697(million 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
Advances received
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
Accumulated retirement benefit-related
adjustment
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets– 12 –

As of March 31, 2021

2,430
1,176
3,427
1,548
627
538
1,600
415
65
54
659
12,545

2,591
1,015
2,806
2,188
586
765
2,949
531
76
126
782
14,418

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

304
5
170
1,995
351
2,827
17,246

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

9,197
7,926
13,366(805)
29,685

1,119

1,592

55

264

(235)

(114)

939

1,742

25
30,29345,67724
31,451
48,697(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Insurance income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of noncurrent assets
Foreign exchange losses
Compensation for damage
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of noncurrent assets
Insurance proceeds from disaster
Total extraordinary income
Extraordinary loss
100 anniversary program cost
Loss on sales of investment securities
Loss on valuation of investment securities
Impairment loss
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to owners of parent(million yen)
Fiscal year ended March 31, Fiscal year ended March 31,
2020
2021
(from April 1, 2019, to(from April 1, 2020, to
March 31, 2020)
March 31, 2021)
35,151
37,86625,512
27,675
9,639
10,191
7,585
7,889
2,053
2,302

– 13 –

2
139
31
63
236

2
546
30
56
164
800

46
22
36
24
18
147
2,142

37
12
64
15
129
2,973

468
23
53
545

152
152

119
19
76
32
247
2,440
969
(117)
852
1,588
1,588

69
10
79
3,045
1,057
(94)
963
2,082
2,082

(Consolidated Statements of Comprehensive Income)Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Retirement benefit-related adjustment
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests(mil. yen)
Fiscal year ended March 31, Fiscal year ended March 31,
2020
2021
(from April 1, 2019, to(from April 1, 2020, to
March 31, 2020)
March 31, 2021)
1,588
2,082

– 14 –

(891)

473

(108)
3
(996)
592

209
120
802
2,885

591

2,884

0

1

(3)

Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(million yen)
Shareholders’ equity
Capital stock

Balance at beginningof term

9,197

Capital surplus

Retained earnings

7,808

12,049Treasury stock(576)

Total shareholders’equity28,478Changes during term
Cash dividends
Net income
attributable toowners of parent
Purchase oftreasury stock
Disposal oftreasury stock
Net changes of
items other thanshareholders’equityTotal changes of
items during theperiodBalance at end ofterm(1,005)(1,005)

1,588

1,588

109

(0)

(0)

156

266

-

109

583

156

849

9,197

7,918

12,632(420)

29,328Non-controllinginterests

Accumulated other comprehensive income

Balance at beginningof term

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Accumulated
retirement benefitrelated
adjustment

Total accumulated
othercomprehensive
income

2,010

163

(238)

1,935

Total net assets-

30,414

Changes during term
Cash dividends
Net income
attributable toowners of parent
Purchase oftreasury stock
Disposal oftreasury stock
Net changes of
items other thanshareholders’equityTotal changes of
items during theperiodBalance at end ofterm(1,005)
1,588
(0)
266
(891)

(108)

3

(996)

25

(971)

(891)

(108)

3

(996)

25

(121)

1,119

55

(235)

939

25

30,293– 15 –

Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(million yen)
Shareholders’ equity
Capital stock
Balance at beginningof term

9,197

Capital surplus

Retained earnings

7,918

12,632

Treasury stock(420)

Total shareholders’equity29,328Changes during term
Cash dividends
Net income
attributable toowners of parent
Purchase oftreasury stock
Disposal oftreasury stock
Net changes of
items other thanshareholders’equityTotal changes of
items during theperiodBalance at end ofterm(1,348)(1,348)

2,082

2,082

7

9,197

(400)

(400)

14

22

7

734

(385)

356

7,926

13,366(805)

29,685

Accumulated other comprehensive income

Balance at beginningof term

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Accumulated
retirement benefitrelated
adjustment

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

1,119

55

(235)

939

25

30,293

Changes during term
Cash dividends
Net income
attributable toowners of parent
Purchase oftreasury stock
Disposal oftreasury stock
Net changes of
items other thanshareholders’equityTotal changes of
items during theperiodBalance at end ofterm(1,348)
2,082
(400)
22
473

209

120

802

(1)

801

473

209

120

802

(1)

1,158

1,592

264

(114)

1,742

24

31,451– 16 –

(4)Consolidated Statements of Cash Flows(million yen)
Fiscal year ended March Fiscal year ended March
31, 2020
31, 2021(from April 1, 2019, to(from April 1, 2020, to
March 31, 2020)
March 31, 2021)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit-related adjustment
Increase (decrease) in provision for directors’ retirement
benefits
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and valuation of investment securities
Loss (gain) on sales of property, plant and equipment
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received
Insurance proceeds from disaster
Other
SubtotalInterest and dividends income received
Interest expenses paid
Proceeds from insurance income from disaster
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Purchase of property, plant and equipment and intangible
assetsProceeds from sales of property, plant and equipment
Payments of loans receivableCollection of loans receivable
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from stock issuance to non-controllingshareholders
Repayments of finance lease obligations
Cash dividends paid
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

– 17 –

2,440
611
32
5
82

3,045
677
(27)
80

10

24

(141)
46
15
(373)
(23)
686
(687)
1,317
(42)
(53)
504
4,430
141
(46)
53
(769)
3,809

(548)
37
(19)
(72)
(300)
(359)
(627)
1,281
187
3,377
548
(37)
(1,105)
2,784

(47)
47
(11)

(47)
47
(14)

772

579

(1,392)(2,414)

28
(8)
2
–
(609)

(2)
2
(18)
(1,867)

45
100
(36)
(0)

550
140
(70)
(402)

25

-

(0)
(1,002)
(868)
(55)
2,275
10,30012,575(0)(1,345)(1,129)80(131)
12,575
12,444(5)Notes to Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Changes in Accounting Policy)
Not applicable(Change in the method of presentation)(Consolidated Balance Sheets)
From the current fiscal year, the Company independently records advances received, which used to be included inother of current liabilities, to improve clarity. To reflect this change in the method of presentation, the Company has
reclassified the financial statements for the previous accounting period.
As a result, the 2,260 million yen of other in current liabilities in the balance sheet for the previous fiscal year has been
reclassified as 1,600 million yen in advances received and 659 million yen in other.
(Consolidated Statements of Cash Flows)
From the current fiscal year, the Company independently records increase (decrease) in advances received, whichused to be included in other of cash flows from operating activities, to improve clarity. To reflect this change in themethod of presentation, the Company has reclassified the financial statements for the previous accounting period.
As a result, the 462 million yen of other in cash flows from operating activities in the consolidated cash flow statement
for the previous fiscal year has been reclassified as (42 million yen) in increase (decrease) in advances received and504 million yen in other.

– 18 –

(Segment Information)[Segment Information]
1. Overview of reportable segment
The Company’s reportable segments are components of the Nikko Group about which separate financial information isavailable. These segments are subject to periodic examinations to enable the Company’s Board of Directors to decide
how to allocate resources and assess performance.
The Company formulates comprehensive strategy for products and services in Japan and overseas and implements
business activities.
The Company, therefore, classifies its operations into three reportable segments of Asphalt Plant-Related Business,
Concrete Plant-Related Business and Environment- and Conveyor-Related Business.
The Asphalt Plant-Related Business produces asphalt mixing plants, recycling plants, etc. and provides maintenanceservices. The Concrete Plant-Related Business produces concrete batching plants, etc. and provides maintenanceservices. The Environment- and Conveyor-Related Business produces environmental and recycling plants, various typesof conveyor systems, etc.
2. Calculation of net sales, income/loss, assets, and other items by reportable segment
Accounting methods applied in the reportable business segments are roughly in accordance with the Significant Matters
Serving as a Basis for the Presentation of Consolidated Financial Statements.
Reportable segment income is based on operating income.
Intersegment sales or transfers are based on market price.
3.

Net sales, income/loss, assets, and other items by reportable segment
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(mil. yen)
Asphalt
PlantRelated
Business
Net sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income
Segment assets
Other items
Depreciation and amortization
Increase (decrease) in tangible
and intangible assets

Reportable segment
Concrete
EnvironmentPlantand ConveyorRelated
RelatedBusiness
Business

Total

Other
business(note)

Total

17,51817,518
1,118
14,121

9,158
9,158
761
5,281

2,634
25
2,660
562
1,454

29,311
25
29,336
2,442
20,857

5,840
106
5,946
1,020
8,956

35,151
131
35,282
3,462
29,814

155

83

8

247

164

411

473

255

3

732

686

1,418

Note: Other is a business segment that is not included in reportable segments and includes temporary
construction material business, hand tool business, floodgate business, and crusher business.
Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(mil. yen)
Asphalt
PlantRelated
Business
Net sales
Sales to outside customers
Inter-segment sales and transfers
Total
Segment income
Segment assets
Other items
Depreciation and amortization
Increase (decrease) in tangible
and intangible assets

Reportable segment
Concrete
EnvironmentPlantand ConveyorRelated
RelatedBusiness
Business

Total

Other
business(note)

Total

19,467
19,467
1,239
16,181

9,212
9,212
879
5,835

2,390
17
2,408
482
1,228

31,07017
31,0882,601
23,244

6,796
104
6,900
1,170
9,336

37,866
121
37,9883,771
32,581

205

102

9

317

191

508

1,571

460

47

2,078

461

2,540

– 19 –

Note: Other is a business segment that is not included in reportable segments and includes temporary
construction material business, hand tool business, floodgate business, and crusher business.

– 20 –

4.

Difference between reportable segment total and consolidated financial statement amounts and main factors in the
difference (related to difference adjustment)
Net sales
Reportable segment total
Net sales for Other
Elimination of intersegment transaction
Net sales in consolidated financial
statements(mil. yen)
Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021
29,33631,088
5,946
6,900
(131)
(121)
35,151

37,866(mil. yen)
Earnings
Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021
Reportable segment total
2,442
2,601
Earnings for Other
1,020
1,170
Elimination of intersegment transaction––
Corporate expenses (note)(1,409)(1,469)Operating income in consolidated financial
2,053
2,302
statements
Note: Corporate expenses are expenses of planning and administrative divisions of the Company that are not
attributable to reportable segments.

AssetsReportable segment total
Assets in Other
Corporate assets (note)
Total assets in consolidated financial
statements(million yen)
Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021
20,857
23,244
8,956
9,336
15,862
16,11645,677

48,697

Note: Assets in Other are assets that are not attributable to reportable segments, including surplus funds
managed by the Company, funds for long-term investment, and assets associated with administrative
divisions.

Reportable segment
total
Other items

Depreciation andamortization
Increase (decrease) intangible and intangible
assetsOther business(mil. yen)Amount in
Adjustment (note) consolidated financial
statements
FiscalFiscalFiscalFiscal
year
year
year
year
ended
ended
ended
ended
March
March
March
March
31, 2020 31, 2021 31, 2020 31, 2021

Fiscal
year
ended
March
31, 2020

Fiscal
year
ended
March
31, 2021

Fiscal
year
ended
March
31, 2020

Fiscal
year
ended
March
31, 2021

247

317

164

191

199

168

611

677

732

2,078

686

461

133

208

1,551

2,748

Note: The adjustments for increase in property, plant and equipment and intangible assets are capital investment
related to the planning and administrative divisions of the Company.

– 21 –

[Related Information]
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
1. Information by product and service
The categories of products and services are omitted as they are the same as the reportable segments.
2.

Information by region(1) Net sales(mil. yen)
Japan

China
30,429

Other
3,637

Total
1,083

35,151(Note) Net sales are categorized by country or region based on the locations of the customers.
(2) Property and equipment
The amount of property and equipment located in Japan is omitted as it accounted for more than 90% of
the property and equipment on the balance sheet.
3.

Information by major customer
Sales to outside customers are omitted because net sales to no customer account for 10% or more of net
sales on the consolidated statement of income.

Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
1. Information by product and service
The categories of products and services are omitted as they are the same as the reportable segments.
2.

Information by region(1) Net sales(mil. yen)
Japan

China
34,130

Other
3,509

Total
226

37,866(Note) Net sales are categorized by country or region based on the locations of the customers.
(2)

Property and equipment

The amount of property and equipment located in Japan is omitted as it accounted for more than 90% of
the property and equipment on the balance sheet.
3.

Information by major customer
Sales to outside customers are omitted because net sales to no customer account for 10% or more of net
sales on the consolidated statement of income.

– 22 –

[Information regarding impairment of non-current assets by reportable segment]
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(mil. yen)
Asphalt Plant- Concrete Plant- EnvironmentRelated
Relatedand conveyorBusinessBusinessrelated businessImpairment
loss

15

10

Corporate/elimination

Other

–

6

Total

–

32

Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
Not applicable[Information regarding the amount of goodwill amortization and the balance of unamortized goodwill byreportable segment]
Not applicable[Information regarding gain on bargain purchase by reportable segment]
Not applicable(Per Share Information)
Fiscal year ended March 31, 2020
(from April 1, 2019, to March 31,

Fiscal year ended March 31, 2021
(from April 1, 2020, to March 31,

2020)

2021)

Net assets per share

780.68 yen

823.01 yen

Net income per share

41.17 yen

54.31 yen

The Company carried out a one-to-five split of its common stock effective on October 1, 2019.
Net assets per share and net income per share are calculated based on the assumption that the stock split was executedat the beginning of the previous fiscal year.
Diluted net income per share is not described, as dilutive shares do not exist.
Note: The calculation base for profit for the period per share is as follows:
Fiscal year ended March 31, 2020
(from April 1, 2019, to March 31,
2020)

Fiscal year ended March 31, 2021
(from April 1, 2020, to March 31,
2021)

Net income per share
Net income attributable to owners of parent(in million yen)Amount not attributable to common
stockholders (million yen)
Net income attributable to common stock ofowners of parent (million yen)
Average number of shares outstanding
during the term (shares)– 23 –

1,588

2,082

–

–

1,588

2,082

38,589,549

38,349,338

(Significant Subsequent Events)
Not applicable– 24 –

5.

Other Information(1)

Changes in Officers(i) Changes in Representative Directors
Representative Director to retire
Takahisa Nishikawa, Representative Director and Chairman
Nishikawa is scheduled to assume the post of Director and Chairman without the right of representation.
(ii) Expected date of retirement
June 24, 2021(iii) Changes in Other Officers• Directors to be promoted
Hiroshi Fujii,
Senior Managing Director, General Manager, Administrative Division,
security export control in-charge(currently Managing Director, General Manager, Administrative Division,
security export control in-charge)• Candidates for Directors
Minoru Tanaka, Director, Manager, Service Planning Department(currently Senior Executive Officer, Manager, Service Planning Department)
Masafumi Ishii,
Rika Saeki,

Outside Director
Outside Director(currently Representative Director, Usystem Co., Ltd.)• Directors to retire
Hiroyuki Sakurai,

Managing Director (Chairman, Nikko (Shanghai) Construction Machinery Co., Ltd.;full time)

Toshifumi Kinugasa,
Director (Representative Director and President, Tombo Industry Co., Ltd.; full time)• Executive Officers to be promoted
Masao Natori,

Senior Executive Officer, General Manager, General Affairs Department, Manager,
Cost Management Department, director of a first-class registered architect’s office(currently, Executive Officer, Manager, General Affairs Department, Manager,
Cost Management Department, director of a first-class registered architect’s office)Morie Okaaki,

Senior Executive Officer, Manager, Industrial Machinery Sales Management
Department(currently Executive Officer, Manager, Industrial Machinery Sales Management
Department)• New Executive Officers
Koichi Kawakami,
Toyokazu Uehara,
Katsuhiro Kawamura,(iv) Expected date of changes(2)

Executive Officer, Manager, President’s Office, Manager, Quality Assurance Office
Executive Officer, Manager, Technology Management Department,
Technology Division
Executive Officer, Manager, Development Department, Technology Division

June 24, 2021
Other
Not applicable– 25 –