Consolidated Financial Results for the Six Months of Fiscal Year Ending March 31, 2016
<under Japanese GAAP>
November 9, 2015
Company name : NIKKO COMPANY
ID number: 5343 Stock listing : Nagoya Stock Exchange Second Section
URL: http://www.nikko-company.co.jp/
Representative : Mitsuru Mitani, Chairman and CEO
Contact: Kazuya Nunokawa, Managing Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report: November 13, 2015
Scheduled date to begin dividend payments: Preparation of supplementary materials for quarterly financial results : None
Holding of quarterly financial results meeting : None
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2015 (April 1, 2015 - September 30, 2015)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year)
Net sales

Operating income％Millions of yen
Six months ended
September 30, 2015

6,508

％

Millions of yen(17.0)

(437)

(413)

-(435)-(60)-(186)-

Millions of yen-

Six months ended
7,837
(3.3)
(120)
September 30, 2014
Note: Comprehensive income (Millions of yen):
September 30, 2015: (410) ( -%)Net income pershare％

Profit (loss) attributableto owners of parent％
Millions of yen

Ordinary income

September 30, 2014: (66) ( -%)Diluted net income
per share
Yen

Yen

Six months ended
September 30, 2015(18.66)-Six months ended
September 30, 2014(9.97)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of September 30, 2015

9,280

774

8.3

33.20

As of March 31, 201510,395

1,184

11.4

50.80

Reference: Shareholders' equity (Millions of yen):

September 30, 2015: 774

March 31, 2015: 1,184

2. Dividends

Fiscal Year ended March 31, 2015-

Dividend per share
3Q-end
Yen
Yen
0.00
-

Fiscal Year ending March 31, 2016

-

0.00

1Q-end2Q-endYen

Fiscal Year ending March 31, 2016
(forecast)
Notes: Revision of dividend forecast during the period: None

Year-end-

Annual
Yen

Yen

0.00

0.00

0.00

0.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2016 (April 1, 2015 - March 31, 2016)(Percentage figures represent changes from the same period of the previous year.)Net sales

Full year

Operating income

Profit (loss) attributableto owners of parent% Millions of yen%

Ordinary income

Millions of yen%

Millions of yen%

16,0002.650-

Millions of yen
50-0-

Net income
per share
Yen
0.00

Notes: Revision of projected consolidated performance during the period :NoneConsolidated forecast for the six months ending September 30, 2015 have not been disclosed because the Company and its
subsidiaries track performance on an annual basis only.

1

NIKKO COMPANY

4. Notes(1) Changes in significant subsidiaries (changes in specified subsidiaries accompanying changes in the scope of consolidation) during
the period : None
(2) Application of special accounting methods for quarterly consolidated financial statements : None
(3) Changes in accounting policies, changes in accounting estimates, or restatement
1) Changes in accounting policies due to changes in consolidated accounting methods :2) Changes other than 1) above: None
3) Changes in accounting estimates : None
4) Restatement: NoneYes(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
September 30, 2015 :24,172,000 shares
March 31, 2015:24,172,000 shares
2) Number of treasury stock at the end of the period
September 30, 2015 :
852,337 shares
March 31, 2015:
850,499 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Six months ended September 30, 2015 : 23,320,896 shares
Six months ended September 30, 2014 : 18,749,898 shares*Information regarding the implementation of quarterly review procedures
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments andExchange Law. At the time of disclosure, we have not completed the review process for these consolidated statements.

*Appropriate use of business forecasts, other special items
Forecasts regarding future results in these materials are based on information available to the Company at the time the materials werecreated. Actual results may differ significantly from these forecasts for a number of reasons.

2NIKKO COMPANY
Quarterly Consolidated Financial Statements(Millions of yen)

(1) Consolidated Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Lease assets
OtherTotal intangible assets
Investments and other assets
Investment securities
Claims provable in bankruptcy, claims provable inrehabilitation and other
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax ｌiabilities
Provision for directors' retirement benefits
Net defined benefit liability
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-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

3

As of March 31, 2015

As of September 30, 2015

1,285
2,469
1,407
582
224
259
1119(11)
6,336

529
1,948
1,519
626
316
302
1127(8)
5,363

6,729
(4,660)2,068
4,660(4,433)226
1,190(1,129)61
1,145462(318)
144
62
3,708

6,763
(4,745)
2,018
4,728(4,471)
256
1,209(1,141)68
1,145
251(152)
99
48
3,636

48287

3
73
77

139

86

494

494

―
123(494)
263
4,058
10,3950116(494)
203
3,916
9,280

2,729
1,765
369
79
49
51
276
1,184
6,504

2,487
1,740
368
45
37
49
261
999
5,989

851
77
8
44
1,581
142
2,706
9,210

667
62
8
44
1,596
138
2,516
8,506

3,470
1,584
(3,224)
(336)
1,494

3,470
1,584
(3,659)
(336)
1,058

1(115)
(195)
(309)
1,184
10,3951(115)
(170)
(284)
774
9,280

NIKKO COMPANY(2) Consolidated quarterly statements of income
and consolidated quarterly statements of comprehensive income(Millions of yen)

Consolidated quarterly statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sales of noncurrent assets
Gain on liquidation of subsidiaries and affiliates
Gain on sales of investment securities
Reversal of provision for ｌoss on lead trouble measures
Total extraordinary Income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on valuation of investment securities
Loss on sales of investment securities
Total extraordinary losses
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Six Months ended
September 30, 2014

Six Months ended
September 30, 2015

7,837
5,587
2,249
2,370(120)

6,508
4,716
1,792
2,229(437)

01978
97

1252652191837(60)181028(413)

27―
3646―
―
1―
119―
123
143(158)22
628(186)―(186)―
2―2(414)
20020(435)―(435)Six Months ended
September 30, 2014

Six Months ended
September 30, 2015

(186)

(435)

86
0
32
119(66)(0)024
24(410)(66)―(410)―

Consolidated quarterly statements of comprehensive income(Millions of yen)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

4

NIKKO COMPANY(3) Consolidated Statements of Cash Flows(Millions of yen)
Six Months ended
September 30, 2014
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Reversal of provision for ｌoss on lead trouble measures
Gain on liquidation of subsidiaries and affiliates
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims provablein rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Proceeds from liquidation of subsidiaries and affiliates
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Proceeds from issuance of common stock
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

5Six Months ended
September 30, 2015

(158)
275
(6)
30(51)
44(6)
19(8)
―
123
17(36)(7)
321(414)
200
(2)
(1)
(14)
38(1)
180
2(1)
―
――
521

1(0)

(55)
(300)
(99)
102
6(19)
(40)
49(292)
(241)
(180)
(370)
1(18)
(32)
(418)

―
30
397(97)
26
7
9374

(5)
951
(128)
―
―6(66)

(5)
(200)
(93)
(0)
531
232
0657
394
1,051

(25)
(184)
(55)
(0)
―(265)
(0)
(751)
1,208
457

NIKKO COMPANY[Consolidated Segment Information]
Six Months ended September 30, 2014 (April 1, 2014 – September 30, 2014)
Housing &EnvironmentalEquipment(Millions of yen, rounded down)Amounts on theSegment
Adjustment consolidated
financial
total(Note 2)statements

Tabletop

Functional
Ceramics
ProductOther(Note 1)

4,903

1,751

1,182

-

7,837

-

7,837-------

4,903

1,751

1,182

-

7,837

-

7,837

91

3289-

213(334)(120)

Net sales
Sales to Outside Customers
Intersegment sales or Transfers
Total
Segment profit (loss)(Operating income (loss))

Notes: 1. The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Segment income adjustment of 334 million yen consists of expenses related to departments that do not belong to the reportable segments.

Six Months ended September 30, 2015 (April 1, 2015 – September 30, 2015)
Housing &Environmental
Equipment

Tabletop(Millions of yen, rounded down)Amounts on theAdjustment
consolidated
financial(Note 2)statements

Functional
Ceramics
ProductSegment
total

1,206

6,508

Net sales
Sales to Outside Customers
Intersegment sales or Transfers
Total
Segment profit (loss)(Operating income (loss))

4,170

1,131-

6,508------

4,170

1,131

1,206

6,508-

6,508

(25)

(207)

145

(87)

(349)

(437)

Notes: 1. The “Other” is not business segment.
2. Segment income adjustment of 349 million yen consists of expenses related to departments that do not belong to the reportable segments.

6