Financial Results for First Quarter of Fiscal Year Ending March 31, 2023
[Japanese GAAP] (Consolidated Data)
August 10, 2022
Company Name: Nikko Co., Ltd.
Stock Code:6306

Stock Exchange Listing: Tokyo Stock Exchange

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

Representative: Representative Director and President
For inquiries:
Senior Managing Director / General Manager of
Administrative Division

Masaru Tsuji
Hiroshi Fujii

Scheduled date for filing the quarterly report: August 10, 2022

Scheduled date for cash dividends:

Quarterly earnings supplementary explanatory materials:

Yes

Quarterly financial results briefing session:

Yes (for institutional investors, analysts, andnewspaper reporters)

Tel: +81-78-947-3141–(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for First Quarter of Fiscal Year Ending March 31, 2023 (April 1, 2022 - June 30, 2022)(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%Three months ended9,5047.8183(51.1)
326 (37.2)
140(62.9)
June 30, 2022
Three months ended
8,817
21.3
375(8.1)
519 (47.0)378(49.3)
June 30, 2021
Note: Comprehensive income:Three months ended June 30, 2022 248 million yen (-27.6%)
Three months ended June 30, 2021 343 million yen (-63.0%)

Quarterly net income
per share

Diluted quarterly net
income per share

yenyen

3.67

-

9.91

-

Total assets
million yen
51,31452,079Net assets
million yen
31,72532,050Three months ended
June 30, 2022
Three months ended
June 30, 2021
(2) Consolidated Financial Position

As of June 30, 2022
As of March 31, 2022
(Reference) Capital:

As of June 30, 2022
As of March 31, 2022

Equity ratio%
61.8
61.5

Net assets per shareyen
829.36837.22

31,702 million yen
32,003 million yen

2. Dividends
End of 1Q
yen-

End of 2Q
yen
15.00

Annual dividends
End of 3Q
yen-

Fiscal year ended March 31, 2022
Fiscal year ending March 31, 2023
Fiscal year ending March 31, 2023
15.00
(forecasts)(Note) Revision of previously announced dividend targets during this reporting period: None-1-Year-end
yen
15.00
15.00

Totalyen
30.00
30.00

3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)(Percentages indicate year-on-year changes from full fiscal year and first half of theprevious fiscal year, respectively)
Net income
Net income
Net sales
Operating income Ordinary income attributable to owners
per shareof parent
million yen% million yen%million yen %million yen%yen
2Q (first half)
20,000 5.2
1,000 3.3
1,150 4.1
700 (19.3)
18.32
Full year
42,000 8.1
2,300 12.0
2,500 9.9
1,600(3.0)
41.87(Note) Revision of previously announced earnings forecasts during this reporting period: None
*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. : Yes(ii) Changes in accounting policy other than those noted in (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: NoneNote: Please refer to (Changes in Accounting Policy) on page 7 in the Accompanying Material for details.
(4) Shares issued (common stock)(i) Number of shares issued at end ofperiod (including treasury stock)

As of June 30, 202240,000,000 shares As of March 31, 2022 40,000,000 shares(ii) Number of shares held in treasury at
end of period

As of June 30, 2022

1,775,305 shares As of March 31, 2022(iii) Average number of shares outstanding
during the period (quarter-to-date)Three months ended
Three months ended
38,225,285 shares
38,183,407 shares
June 30, 2022
June 30, 2021

1,774,135 shares*This quarterly 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 the forecasts 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 ofConsolidated Financial Results” 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
Wednesday, August 10, 2022.
The Company has scheduled a financial results briefing session (conference call) for securities analysts on
Wednesday, August 31, 2022.

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

4(1) Explanation About Operating Results ···························································································

4(2) Explanation About Financial Position ····························································································

4(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results ·····

4

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

5(1) Quarterly Consolidated Balance Sheet ·························································································(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income ···································································································································Quarterly Consolidated Statement of Income

5Three Months Ended June 30, 2022 ························································································

77Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2022 ························································································8(3) Notes to Quarterly Consolidated Financial Statements ·····································································

9(Going Concern Assumption) ······································································································9(Notes on significant changes in the amount of shareholders’ equity) ··················································9(Changes in Accounting Policy) ···································································································

9(Additional Information) ·············································································································

9-3-1.

Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the three months ended June 30, 2022, the global economy found itself in an extremely difficult phase,since while countries led by the U.S. accelerated the interest rate hikes with growing concerns over inflation
caused by price rise and amid recession fears stemming from the interest rate hike, the turmoil caused by
Russia’s invasion of Ukraine, which began in February 2022, spurred further increases in resource and raw
material prices, . The yen’s depreciation caused by the differences in monetary policies with various othercountries continued, highlighting the impact of rising prices in Japan resulting from the weaker yen.
Under such circumstances, consolidated net sales of the Nikko Group in the quarter under review came to 9,504
million yen (up 7.8% from the same period a year earlier), as sales of Ube Kohki Co., Ltd., which became asubsidiary in March 2022, began contributing from the quarter in addition to continued strong capital investment
demand in the concrete plant-related business. In terms of profits, consolidated operating income totaled 183
million yen (down 51.1% from the same period a year earlier) due to the impact of rising steel price and increases
in personnel cost and research and development expenses. Consolidated ordinary income came to 326 million
yen (down 37.2 % from the same period a year earlier), while quarterly net income attributable to owners ofparent totaled 140 million yen (down 62.9% from the same period a year earlier).
Results by segment are as follows.
<Asphalt Plant-Related Business>
Net sales of both products and the maintenance business in Japan declined compared with the previous period.
Overseas net sales increased compared with the previous period. As a result, net sales of the business declined
1.5% from a year earlier to 4,982 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 products in Japan and overseas increased from the previous period, but those of the maintenancebusiness in Japan declined from the previous period. As a result, net sales of the business rose 20.7% from ayear earlier to 2,381 million yen. New orders received in the period under review decreased compared with ayear earlier, while order backlog increased year on year.
<Environment- and Conveyor-Related Business>
Net sales of environmental products and conveyer products increased compared with the same period a yearearlier. As a result, net sales of the business rose 50.8% from a year earlier to 640 million yen. New orders
received in the period under review increased compared with a year earlier, while order backlog decreased yearon year.
<Other Business>
Net sales of hand tools and crushers increased from the previous period. As a result, net sales of the businessincreased 10.3% to 1,501 million yen. New orders received and order backlog in the period under review
increased compared with a year earlier.
(2) Explanation About Financial Position
Total assets at the end of the reporting period were 51,314 million yen, decreasing 764 million yen from the endof the previous fiscal year.
Current assets were to 32,936 million yen, declining 1,191 million yen from the end of the previous fiscal year.
Main factors contributing to the change are a decrease of 2,604 million yen in accounts receivable-trade,increases of 791 million yen in electronically recorded monetary claims, and 425 million yen in work in process.
Noncurrent assets came to 18,378 million yen, up 426 million yen from the end of the previous consolidated fiscalyear. This was due mainly to increases of 127 million yen in deferred tax assets and 385 million yen in property
and equipment.
Liabilities totaled 19,589 million yen, decreasing 439 million yen from the end of the previous consolidated fiscal
year. Main factors contributing to the change are an increase of 405 million yen in accounts payable-other, as
well as decreases of 541 million yen in notes and accounts payable-trade, 341 million yen in provision forbonuses, and 247 million yen in income taxes payable.
Net assets came to 31,725 million yen, decreasing 324 million yen from the end of the previous fiscal year.
Factors contributing to the change include foreign currency translation adjustment increasing 166 million yen andretained earnings declining 432 million yen.
As a result, equity ratio rose to 61.8% from 61.5% at 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, 2023 that was disclosed on May13, 2022.

-4-2.

Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(mil. yen)
As of March 31, 2022

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
Other business
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Intangible assets
Goodwill
Other businessTotal intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other business
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-5-

As of June 30, 2022

12,436
2,163
7,275
1,594
990
6,970
1,695
1,002
(0)
34,127

12,271
2,526
4,670
2,385
1,303
7,395
1,543
839
(1)
32,936

10,66911,055

266
769
1,036

261
754
1,015

4,336
15
8
864
1,152(131)6,246
17,951
52,079

4,257
15
8
992
1,165
(131)
6,308
18,37851,314

(mil. yen)
As of March 31, 2022
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
Contract liabilities
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-6-

As of June 30, 2022

3,132
868
2,783
2,229
518
664
17
4,405
483
76
35
559
15,774

2,590
1,030
2,849
2,267
271
1,070
17
4,240
141
1749723
15,268

1,583
7
182
2,126
354
4,254
20,029

1,622
3
188
2,144
361
4,320
19,589

9,197
7,925
13,755(784)
30,093

9,197
7,925
13,322(784)
29,660

1,453

1,415

560

727

(104)

(101)

1,910

2,041

46
32,05052,07923
31,72551,314

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Three Months Ended June 30, 2022)(mil. yen)Three Months Ended
Three Months Ended
June 30, 2021
June 30, 2022
(from April 1, 2021
(from April 1, 2022
to June 30, 2021)
to June 30, 2022)
Net sales
8,817
9,504
Cost of sales
6,449
7,068
Gross profit
2,367
2,436
Selling, general and administrative expenses
1,992
2,252
Operating income
375
183
Non-operating income
Interest income
00
Dividends income
9471
Foreign exchange gains
1776
Outsourcing service income
49
Other business
1118
Total non-operating income
173
167
Non-operating expenses
Interest expenses
1317
Compensation for damage
71
Other business85
Total non-operating expenses
2924
Ordinary income
519
326
Extraordinary income
Gain on sales of investment securities
660Total extraordinary income
660Extraordinary loss
Loss due to the spread of COVID-19
23
Loss on sales of investment securities
0
Total extraordinary loss
023
Quarterly income before income taxes
586
303
Income taxes-current
244
295
Income taxes-deferred
(37)
(114)
Total income taxes
207
180
Quarterly net income
378
122
Quarterly loss attributable to non-controlling interests(17)
Quarterly net income attributable to owners of parent378
140-7-

(Consolidated Statements of Comprehensive Income)(Three Months Ended June 30, 2022)

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

Three months ended
June 30, 2021
(from April 1, 2021
to June 30, 2021)-8-378(mil. yen)Three months ended
June 30, 2022
(from April 1, 2022
to June 30, 2022)
122(52)(37)

161(34)
343

160
3
126
248

342

2721(23)

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Changes in Accounting Policy)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021; hereinafter “Fair Value Measurement Guidance”) from the beginning ofthe first quarter under review. In accordance with the transitional treatments prescribed in Article 27-2 of theFair Value Measurement Guidance, the Company plans to apply the new accounting policies prescribed in theFair Value Measurement through the future. The application of the said accounting standard does not affect thequarterly consolidated financial statement.
(Additional Information)(Application of Practical Solution on the Accounting Methods and Disclosure Under the Group Tax Sharing System)
The Company and its domestic consolidated subsidiaries have transitioned from the consolidated taxation
system to the group tax sharing system from the current first quarter ended June 30, 2022. Accordingly,
corporate and local corporate income taxes, and tax-effect accounting are accounted for and disclosed inaccordance with “Practical Solution on the Accounting Methods and Disclosure Under the Group Tax Sharing
System” (PITF No. 42, August 12, 2021; hereinafter referred to as “PITF 42”). In addition, based on Article 32(1) of PITF 42, the effects of the change in accounting policies due to the adoption of PITF 42 are deemed
negligible.

-9-