Fiscal Year 2023 (Ended
March 31, 2024) Financial
Results Briefing Session
Materials
June 17, 2024

Nikko Co., Ltd.
Tokyo Stock Exchange Code: 6306
Masaru Tsuji, Representative Director and President
Hiroshi Fujii, Director and Vice President

Contents
2nd Year Progress Report of FY 2022-2024 Medium-Term Management Plan
Medium-Term Management Plan: Numerical Plan, Position

pp. 4-7

Medium-Term Management Plan: Growth Investment (M&A)

p. 8

Enhancement of Internal Functions

p. 9

Shareholder Returns in Medium-Term Management Plan

p. 102030 Vision, Progress in FY 2022 – FY 2023

pp. 11-21

FY 2023 Financial Results and FY 2024 Outlook

pp. 22-45

Business Climate and Management Strategy

pp. 46-55

Reference Materials

pp. 56-61* The last digit of the figures in this document may differ fromthose in the Quarterly Report due to the treatment of fractions
less than unit.
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2024 All rights reserved.

2

2nd Year Progress Reportof FY 2022-2024 MediumTerm Management Plan

Numerical Plan for Medium-Term Management Plan
Sales and Operating Income PlanIn FY 2023, the second year of the Medium-Term Management Plan, sales were on a rising trend even though they fell short of the target
due to factors such as persistent high prices of steel and other raw materials, slowdown of the Chinese economy, and delay in the start-up of
the Thai business. While it is difficult to achieve the profit target for the current fiscal year, which is the final fiscal year of the plan,achievement of the 50.0 billion yen sales target is in sight (order backlog at the beginning of fiscal year: up 4.7 billion yen vs. FY 2023).

Previous Medium-Term
Management Plan

Medium-Term Management Plan
2nd year

1st year
5.8%

6.1%

(million yen)

5.3%

5.8%

5.5%

3rd year

4.5%

6.0%

5.4%

2.6%
50,00048,00042,00037,866

38,84648,00044,097
39,66535,151
3,000

2,800
2,302

2,600

2,300

2,053

2,053

1,968

1,028

19

20

21

22 planNet sales

22 results

23 planOperating income

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23 results

Operating margin
2024 All rights reserved.

24 plan

24 forecast(fiscal year)4Numerical Plan for Medium-Term Management Plan
Sales and Operating Income Plan
AP-related businessMedium-Term Management Plan

6.4%

3.1%

7.0% 6.1%

7.0%

5.8%

Medium-Term Management Plan
1st year

3rd year

2nd year

1st year
6.4%(million yen)

BP-related business

1.8%

9.5%

8.3%

10.4%

10.0%

2ndyear
9.7%

9.2%

11.3%

3rdyear0.3%

12,80023,00017,51819,46718,32820,00023,00017,93817,341

10,83919,80010,50011,111

10,80011,907

10,800

9,212

9,158

1,450

1,341
1,123
1,600
1,118

1,239

1,200

21

22 plan

22 results

879

761

1,050

23 plan23 results

24 plan

24 forecast

19

20

21

Environment- and conveyor-related business

22 plan

22 results

21.3%

20.2%

19.4%

20.0%

20.0%

3rd year

24.0%

23 results

24 plan(fiscal year)

17.5%

20.4%

17.2%

16.1%

12.2%

3rd
year

2nd year

1st year

12.5%

10.7%

11.9%

12.0%

12.2%
13,500

2,634
562

19

3,018
2,500

2,390
482

20

2,888

3,309

3,200

793
587

21

500

522

500

22 plan

22 results

23 plan

9,000

2,700

2,500

6,796
6,660
1,170 1,073

5,840
550

23 results

24 forecast

Medium-Term Management Plan

2nd year

18.1%

23 plan

Other businessMedium-Term Management Plan
1st year

1,050

1,050

1,017

331

49
20

1,600

1,150
562

19

11.3%

9.7%

24 plan380

24 forecast

Net sales

1,100

1,020

19

20

21

Operating income

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22 plan

11,70010,940

1,250

1,314

1,300

23 results

24 plan

8,324
1,044

22 results

23 plan

12.9%

12,2001,570

24 forecast

Operating margin

2024 All rights reserved.

5

Numerical Plan for Medium-Term Management Plan
Growth Investment*The figures in parentheses denote the previous Medium-Term Management Plan
Item

Human
resourceenhancement

R&D

Investment (cumulative for three years)

Nikko nonconsolidated
up 145(up 69)2.53 bil. yen(1.19 bil. yen)

FY 2022 – FY 2024
Three-year plan●AP-related business field●BP-related business field●Environment and conveyor field●Overseas●Development●Mobile plants●Other

FY 2022 – FY 2023 Results
59
20
12
6
12
11
25

●AP-related business field■Environmentally friendly products■Remote and automated support●BP-related business field■Plant support center■Product improvement■System development●Environment and conveyor field■Product development■Investment in IT incl. EC●Overseas■Development of standard models●AP-related business field●BP-related business field●Environment and conveyor field●Overseas●Development●Mobile plants●Other

up 86●AP-related business field (including overseas)●BP-related business field

1.18 bil. yen●Environment and conveyor field●Other business●AP-related business(FY 2022 Shanghai, Thailand, etc.) Machinery, equipment

Capitalinvestment

6.0 bil. yen(6.3 bil. yen) Construction of a new factory in
Hyogo Prefecture (0.5 bil. yen)

● (FY 2022) Construction of warehouses for AP- and BP-related Construction of a development
and testing center (1.0 bil. yen)

(FY 2023) Construction of new factories, machinery, equipment

businesses(FY 2022, FY 2023) Software, etc.
●Other businessTotal of 4.52 bil. yen
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Position of Medium-Term Management Plan (2022–2024)
 The new Medium-Term Management Plan (2022–2024) is a time period inwhich we build the structure, processes, and systems toward 2030
2030
Medium-Term Management Plan
Net sales(2022–2024)
60.0 billion yen
Business Standardization of AP, BP plants
 Sell portable belt conveyor using EC, offer
channel conveyors
 Entry of overseas AP business into Indonesia
and Vietnam

Internalfunctions Global marketing, DX promotion
 Build cooperative sales structure for new
businesses
 Rebuild human resource managementfoundation and systems

Operating margin

10.0%

Business expansion
phase

2024
Net sales

50.0 billion yen

FY 2021

Internal investment phase
Net sales
38.8 billion yen
Operating margin
5.3%
Develop structures, processes, and systems that form
the foundation for the 10 year vision in the three yearsof the medium-term plan
Promote testing of new services and development ofsystems with focus on the subsequent 10 years

Operating margin

6.0%• Introduce new services and systems in Japan• Establish new revenue base in overseas markets• Introduce technology, rebuild production structure

Business Remote and automated support, comprehensive
management system Full-fledged expansion of environmentally friendly products
 Expansion in ASEAN

Internalfunctions Open and start full operation of a management support center Automated and remote operations using technology
 Review production process and the Head Office Plant tofocus on assembly

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Medium-Term Management Plan
Growth Investment (M&A)
 March 2022: Ube Kohki Co., Ltd. (main business: sheet metal processing andassembly for plants)
 July 2023: Matsuda Kiko, K.K. (main business: manufacture and assembly of various
plants and industrial machinery)
Creation of synergies
Made them into
subsidiaries throughMatsudaNikko
Ube Kohki
Kikoacquisition of all shares
Aim: Expansion of contract-based manufacturing business and improvement of insourcing rate
*Ube Kohki Co., Ltd.
Business:
Design, manufacture, and construction work of gas holders
Manufacture and installation of various types of plant equipment and industrial machinery
Development, manufacture, and sales of solar-related products
Main customers: Major manufacturers, plant engineering companies, etc.
Strengths:
Primarily centered on its own gas holders, Ube Kohki boasts a network of subcontractors manufacturing andinstalling tanks and other large-sized sheet metal products as well as supplying products to customers
throughout Japan*Matsuda Kiko, K.K.
Business:
Manufacture and assembly of various plants and industrial machinery
Main customers: Major plant engineering companies, environment-related machinery manufacturers, etc.
Strengths:
Has the ability to carry out, in an integrated manner, processes from laser beam cutting to secondary
processing, sheet metal welding, assembly, trial run, and inspection
Expert manufacturing skills, high quality, and high-level inspection system
Flexible delivery setting, high level of trust from customers, and excellent track record

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Medium-Term Management Plan
Internal Enhancement
 FY 2022 Formulated Nikko Group CI

MISSION

Mission Nikko must fulfill in daily operations

VISIONThe future we want to realize
VALUE
Values we offer
SPIRIT

Update the social infrastructure by leveraging
engineering that is one step ahead of others.
Making the world a resilient and gentle place.

Spirit we treasure

Set forth 5 values
Set forth 12 spirits

 Human capital enhancement● Along with increasing human resources, we are taking measures aimed at improving the stability of our employees’ daily
lives and their engagement.
★ Three consecutive years of pay increase
FY 2022: Across-the-board 30,000 yen pay increase
FY 2023: 5% pay increase
FY 2024: 5.03% pay increase★ Introduction of a system to award the company’s shares to new employees, those eligible for continued service award,
and high achieving employees★Grant 100 shares to all employees to commemorate achievement of 40.0 billion yen in sales (plan) New personnel system
Purpose: Promote growth and active participation of human resources who support realization of Vision
Content: Clarified employee treatment reflecting employees’ duties and roles
System being administered in such a way as to enable each employee to independently choose their career paths

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Medium-Term Management Plan
Shareholder Returns(million yen)Previous Medium-Term Management Plan

Medium-Term Management PlanFY 2019 results

FY 2020 results

FY 2021 results

35,151
2,053

37,8662,302

38,8462,053

42,0002,300

39,665
1,028

48,0002,800

44,0971,968

50,0003,000

48,000
2,600

1,588

2,082

1,649

1,600

1,020

1,900

1,312

2,100

1,700

40
1,550
97.6%
30,293
5.2%

33
1,260
60.5%
31,451
6.8%

30
1,146
69.5%
32,050
5.2%

30
1,144
71.5%
32,506
4.9%

30
1,147
112.5%
31,604
3.2%

30
1,144
60.2%
33,262
5.7%

30
1,149
87.6%
33,086
4.1%

35
1,334
63.5%
34,028
6.2%

30
1,149
67.6%
33,637
5.1%

Sales
Operating income
Net income attributable toowners of parent
Dividend per share (yen)Total dividend
Dividend payout ratio
Net assets
ROE

FY 2022 plan

FY 2022 results

FY 2023 plan

FY 2023 results

FY 2024 plan

FY 2024 forecast

Dividend payout ratio of 60% or higher
Medium-Term Management Plan period

5.2%

6.8%

5.2%

3rd year

2nd year

1st year

6.2%

5.7%

4.9%

4.1%

3.2%

5.1%

100 yen112.5%

97.6%

60.5%

69.5%

87.6%

71.5%

100%

67.6%

63.5%

60.2%

50 yen

50%

20

0 yen

15

15

15

15

15

18

10
10

18

15

15

15

15

15

15

15

17

15

2019

2020

2021

2022 plan

FY 2022 results

2023 plan

FY 2023 results

2024 plan

2024 forecast

Interim dividends

Year-end dividends

100th anniversary commemorative dividend

Dividend payout ratio

0%

ROE

★The Company carried out a one-to-five split of shares in its common stock effective October 1, 2019, and the amount of dividends has been adjusted to the value after the split.
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102030 Vision
 Maintain and strengthen the Nikko brand, which boasts technological prowess andproduct appeal as a manufacturer, and expand our service business to achieve 60.0
billion yen in net sales and 6.0 billion yen in operating income in 2030

Nikko GroupA top manufacturer of plant facilities and environmental products backed
by high technological prowess; at the same time, become a management
partner for customers offering operation and maintenance services

Expand the scale byleveraging technology

Transform the businessAP-related business in JapanBP-related business in Japan
Maintenance service businessAP-related business overseas
Environment- and conveyorrelated businessMP sales, other businesses

Strengthen operation andmaintenance services

Lateral expansion of
products and markets◆◆FY 2030 Numerical targets◆◆
Net sales: 60.0 billion yen
Operating margin: 10.0%
ROE: 10.0% or higher
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Making the world a resilientand gentle place.

Vision11

Basic Policy of New Medium-Term Management Plan (2022–2024)
 For each businesses, we will actively invest in launching new products and services
for business structure reform under the 2030 vision and in enhancing necessaryorganizational abilities

AP in Japan Develop environmental products by leveraging the development capability as a
top manufacturer
 As a solution partner, support the plant operation of customers

 Carry out comprehensive management of ready-mixed concrete plants
BPAP
overseas

Conveyors

 Develop products that satisfy the industry’s high quality requirements of precast
concrete Design and launch standard model products that are competitive in overseas
markets
 Build an organizational structure for expansion into the ASEAN market
 Offer convenience and efficiency that goes beyond the manufacturer’s
framework by leveraging the engineering of conveyor line, while realizing shortdelivery time and low price through further modularization
 Develop web-based services and design structure and build a foundation fordelivering new products and services
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Current Status of Medium-Term Management Plan (2022–2024)◆Medium-Term Management Plan items implemented and achieved

Current Status of Medium-Term
FY 2025Management Plan (2022–2024)
Into dynamic business expansion phase■Main items implemented in FY 2022 andFY 2023
FY 2022
 Formulation ofmanagement
philosophy

FY 2022 to FY 2024

Internal
investment phase
FY 2024

 Establishment of
ASEAN Business
Strategy Office

FY 2023
 Start of implementationof new personnel
system Matsuda Kiko joins
Nikko Group Start of transfer ofservice divisions tosales force

FY 2022 and FY 2023 Common

FY 2023• Developed Mobix Eco, new mobile soil
FY 2022
improving machine• Developed VPIV-Clover, a new AP • Released SiiLO, system for mixture silos• Developed hydrogen-only burner• Developed NAP.ACE-130, a standard ASEAN• Developed new mixture
model
transportation box• Started operation of Mimamori-kun, work
management system• Launched MP app NM-LINK

 Major personnel increase for business expansion*Number of Nikko employees
861 in April 2021  1,117 in March 2024

Drastic organizational changes aimed at solving issues
 Increased rate of standardization in plant design
E.g. VP series
Rate of standardization: 30% or less  achieved 70% (FY 2023)

AP business in Japan BP business AP business overseas Mobile plant businessMS business Growth investment and enhancement of internal functions
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Medium-Term Management PlanFY 2022 – FY 2023 Progress: AP-Related Business in Japan (1)Domestic Asphalt Plant-Related
Business
A management partner for customers, throughoperating plants by leveraging the strong
product appeal of the plant manufacturer

Support for decarbonization
 Remote and automated support

 We will leverage our high technological prowess as the top manufacturer and• Establish technology for decarbonization as well as remote and automatedoperation• Support customers’ plant operation more than ever

1. Support for decarbonization
Medium-term
goal(FY 2022 –FY 2024)Develop lowcarbon mixture
manufacturingsystemDevelopcombustion
technology for
decarbonizedfuels

FY 2022 – FY 2023 Progress• Foamed equipment
FY 2022
FY 2023◎

Orders: 40 units; sales: 19 units
Orders: 44 units; sales: 55 units• Developed VPⅣ-Clover, a new AP (FY 2022)◎• Developed hydrogen burner◎

FY 2022

Completed test run of mixture manufacturing
Hydrogen-only burner, which can also be co-firedwith city gas• Ammonia burner
FY 2022 –FY 2023

Offer combustion
technology forbiomass and gas

Progress in
the Plan

FY 2023
FY 2025

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◯

Carried out LNG-ammonia combustion test at thecompany
Some issues with usage of AP also emerged and we
started discussing actions
Started selling burner that burns recycled oil
Plan to supply burner that burns pulverized
coal◎
Also driving forward development of otherfuels

2024 All rights reserved.

14

Medium-Term Management PlanFY 2022–FY 2023 Progress: AP-Related Business in Japan (1)Domestic Asphalt Plant-Related
Business
A management partner for customers, throughoperating plants by leveraging the strong
product appeal of the plant manufacturer

Support for decarbonization
 Remote and automated support

 We will leverage our high technological prowess as the top manufacturer and• Establish technology for decarbonization as well as remote and automatedoperation• Support customers’ plant operation more than ever

1. Support for decarbonization
Medium-term
goal(FY 2022 –FY 2024)

Other

FY 2022 – FY 2023 Progress

Progress in
the Plan

VP series selected for advanced equipment
subsidy by the Ministry of Economy, Trade andIndustry*
The new AP model Value Pack was selected for the subsidy
program of the Energy-Saving Investment Promotion &Demand Structure Transformation Support Project under the
FY2023 supplementary budget.
FY 2023

As much as 1.5 billion yen in subsidy is available for
introducing a VP series plant
Upon introducing VP series, up to two thirds of design, facility,
and installation work expenses will be covered by subsidies for
SMEs and up to half for large companies. *1
https://prtimes.jp/main/html/rd/p/000000045.000081441.html*1 In the range of 1 mil. yen/fiscal year to 1.5 bil. yen/fiscal year (2.0 bil.
yen/fiscal year for non-fossil fuel)
The VP series is a plant series that combines asphalt plant and recycling facility, which wereseparate facilities till then, given the increased circulation of recycled asphalt mixture.
It is a next-generation plant with improved safety and environmental friendliness whose
compact design helps in curbing energy consumption.
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Medium-Term Management PlanFY 2022–FY 2023 Progress: AP-Related Business in Japan (2)Domestic Asphalt Plant-Related
Business
A management partner for customers, throughoperating plants by leveraging the strong productappeal as the plant manufacturer

 Support for decarbonization

Remote and automatedsupport We will leverage our high technological prowess as the top manufacturer and• Establish technology for decarbonization as well as remote and automatedoperation• Support customers’ plant operation more than ever

2. Remote and automated support
Medium-term goal
(FY 2022–
FY 2024)

FY 2022 – FY 2023 Progress

Offer partiallyremote shipment
system

FY 2023

Remote andautomated
support of plant
operations

FY 2022 –FY 2023

Released SiiLO, remote shipment system for
mixture silos◎

Considering refining and incorporating it as a standard based onrequests for improvement from users
Identified issues and risks and completed listingup most (around 95%) of facilities and equipment
required for automatic operations.

Aim to start it in the next medium-term plan
including establishment of an operation center, as
it requires a subscription contract at the time of
replacement (SB) as well as personnel withexperience of operating plants

Accumulate plant
operation data
based onexpansion of thenumber ofcontracts formaintenanceservicesubscription

Progress in
the Plan

By FY
2023

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We have concluded nine contracts
Further proposals in progress△

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16

Medium-Term Management PlanFY 2022 – FY 2023 Progress: BP-Related Business in Japan (1)Concrete plant-related business
A top manufacturer by far as well as anenvironmentally friendly manufacturer that
implements total management of ready-mixed
concrete plantsComprehensive concrete
plant management system
Plant support center Mobile plants
 Environmentally friendly products

2.
Expansion intodevelopi
ng fields Aim to become a top manufacturer by offering comprehensive
management of ready-mixed concrete plants and by developing
products that cater to the high quality requirements of precast
concrete as well as being an environmentally friendly manufacturer

1.

Development and expansion of in-house control panels
Medium-term
goal

FY 2022 – FY 2023 Progress(FY 2022 –FY 2024)
FY 2023
Promotestandardization ofplants byincreasing control
panel developed
in-house andaccumulating
plant operation
information ofcustomers

Introduce service
to support
operation ofcustomer plants

Formulated Nikko Open Platform Conceptthat manage all data related to concrete
manufacturing in a comprehensive manner
Built DX plant management system
Completed prototype of waste water
treatment package => Start expanding sales
in 2024◯

FY 2025: Start working towards minor
upgrade of control panel
Concrete initiatives for standardizing plants

Totalthrough
FY 2023

Concluded 28 subscription contracts

FY 2024Developed DX facility ledger functions for
expanding the functions of DX plant
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Progressin thePlan2024 All rights reserved.

◯
◯

17

Medium-Term Management PlanFY 2022 – FY 2023 Progress: BP-Related Business in Japan (2)Concrete plant-related business
A top manufacturer by far as well as anenvironmentally friendly manufacturer that
implements total management of ready-mixed
concrete plants

 Comprehensive concrete plant
management system
 Plant support centerMobile plants
Environmentally friendly
products
2.
Expansion intodevelopi
ng fields Aim to become a top manufacturer by offering comprehensive
management of ready-mixed concrete plants and by developing
products that cater to the high quality requirements of precast
concrete as well as being an environmentally friendly manufacturer
Medium-term
goal(FY 2022 –FY 2024)

FY 2022 – FY 2023 Progress

FY 2022
Expand mobile
plants into areas
which are nolonger reachable
due toconsolidation ofplants

Delivered to users of precast concrete for projects
We are obtaining sales leads for disaster
restoration and special concrete demand
FY 2024 Budgeted one unit
Started considering design, mixer shape, ancillaryequipment, etc. corresponding to usages forfurther sales expansion

FY 2022 Constructed a demonstration plant by
Develop andparticipating in a GI fund project for the
expand products
development of manufacturing technology forin response toconcrete, etc. using CO2, started research on
customers’
methods to reduce electric power consumption inenvironmental
concrete manufacturingneeds such as
CO2 emissions
Proposed manufacturing equipment such as Eco
reduction
FY 2022 – Tankaru to precast concrete users
FY 2023 Delivered equipment for two projects andreceived inquiries for 12 projects
Established cooperative structure with Mitsubishi
FY 2022 – Corporation for introduction of Carbon CureFY 2023 technology (Canada)
Concluded contracts for one ready-mixed plantand one precast concrete plan
Received multiple inquiries

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Progressin the Plan

△

◯

◎

◯

18

Business Strategies (2030 Vision)
AP-Related Business Overseas
 Design and launch standard model products that are competitive also in overseas
markets
 Build a sales and production structure for expansion into the ASEAN market

A market where wewill continue to growin the existing fields
Customers: Major
Model: Large* Size of circle corresponds
to the scale of sales[Legend]Market that will become a newrevenue base in 10 years: Manufacturing base
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19

Business Strategies
FY 2022 – FY 2023 Progress: AP-Related Business Overseas (1)Overseas Asphalt Plant-Related
Business
Global asphalt plant manufacturer

Expansion in ASEAN
 Global standard products • Early start-up of the Thailand production base
• Establishment of sales structures in Indonesia and Vietnam

1. Develop a structure for entering into new markets
Mediumterm goal

FY 2022 – FY 2023 Progress(FY 2022–
FY 2024)
Newly enter
FY 2023the IndonesianandVietnamese
FY 2023markets

Progressin thePlanConcluded a distributor agreement with aconstruction machinery dealer (VITRAC) in
Vietnam◯

Sold one AP made in China (Vietnam)
In business negotiations for one AP madein Thailand (Vietnam)△

We will decide on distributors in Indonesia by observing thetrend in the ASEAN market
FY 2023
Establish
cooperation
structures with
local
distributors

Carried out sales promotion with a Thai
agent and orders increased from four units
in FY 2022 to 10 units FY 2023
Continue to promote sales also in FY 2024
[FY 2024 estimates]
Expected sales:
1,771 million yen
Expected orders:
17 units
Expected sales:
21 units
Expected orders remaining
at the end of the fiscal year:
four units

20

◎

20
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Business Strategies
FY 2022 – FY 2023 Progress: AP-Related Business Overseas (2)Overseas Asphalt PlantRelated Business
Global asphalt plant manufacturer • Early start-up of the Thailand production base
• Establishment of sales structures in Indonesia and Vietnam

2. Design plants standardized for overseas
Medium-term goal
(FY 2022 – FY 2024)

 Expansion in ASEAN

Global standard products

FY 2022 – FY 2023 Progress

FY 2023
Design standardized
plants that are costcompetitive and cateringto the needs ofoverseas markets
through the introductionof local supplies, etc.

Progressin thePlan

Developed a standard ASEAN model,
NAP.ACE-130 and received an order▶ Plan to deliver it in FY 2024◎

The standard ASEAN model NAP.ACE-130
We reviewed the design and seismic standards from the perspective of global standards
and reduced costs of the model by designing the frame anew and downgrading the parts
used.
Regarding the plant layout, we took into account the local location for development,
leading to a compact layout that can also address future recycling demand.
We used local manufacturers for supplies and enabled local procurement.

21

21
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2024 All rights reserved.

21

FY 2023 Financial Resultsand FY 2024 Outlook

FY 2023 Performance Highlights (1)FY 2023 results(million yen)

Results

YoY change (amount)

YoY change (%)

Net sales

44,097+4,432+11.2%

Operating income

1,968

+940

+91.4%Net income attributable to owners of parent

1,312

+292

+28.6%New orders received

48,749+7,900+19.3%▶ Net sales of AP-related business: Net sales of the overall business increased as 3.4% year on year as plant sales increased 85.8% and maintenanceservices rose 3.8% in Japan reflecting a recovery trend, even as sales of the overseas business declined significantly to 43.7% of the previous fiscal year.
▶ Net sales of BP-related business: Increased 7.2% year on year as product sales in Japan were at a similar level as the previous fiscal year while thoseof maintenance services increased.
▶ Net sales of other business: Sales of the crusher-related business led by mobile products rose 44.2% year on year and the contract-based manufacturingbusiness rose 38.6% as M&A expanded the business and we split the other business into the crusher-related business, contract-based manufacturingbusiness, and other business.

Business climate

AP-related business
FY 2023 (Apr. 2023 – Mar. 2024)

Results(10,000 tons)

3,449
830
2,619

Mixture output
Virgin mixture
Recycled mixture

YoY change(6.1%)(9.4%)(5.0%)

BP-related business

Share of recycled mixture

75.9%

Source: Japan Asphalt Mixture Association

FY 2023 (Apr. 2023 – Mar. 2024) Results (10,000 m3) YoY change
Ready-mixed concrete shipment

7,018(5.7%)

Source: ZENNAMA (National Federation of Ready-Mixed Concrete Industrial Associations and National Federation of Ready-Mixed Concrete Cooperatives Association)www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

2024 All rights reserved.

23

FY 2023 Performance Highlights (2)AP-related business (Japan): Recovering trend in capital investment as profitability of road pavementcompanies improved.
Plant sales increased 85.8% year on year, maintenance sales rose 3.8%
⇨ p. 37 AP-Related Business
AP-related business (Thailand): Sales of recycling plants increased triggered by sales promotion activities⇨ p. 37 AP-Related Business, p. 38 AP-Related Business (Japan vs. Overseas)
BP-related business : Projects continued to increase throughout the fiscal year thanks to the stable market
Profits increased as net sales of maintenance services grew on the back of market share
expansion⇨ p. 39 BP-Related Business, p. 50 BP-Related Business Climate and Outlook
Other business: Special demand of Ukraine restoration in the crusher-related business and expansion of sales
base
Sales increased from M&A in the contract-based manufacturing businessNew orders and order backlog continued to remain flat
⇨ p. 34 Trends in New Orders Received (Cumulative) and p. 35 Trends in Year-End Order Backlog
Down 52.5% year on year in China due to worsening of the economy including real estate⇨ p. 37 AP-Related Business, p. 38 AP-Related Business (Japan vs. Overseas),p. 49 AP-Related Business Details and Strategy for the Future (2)www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

2024 All rights reserved.

24

FY 2024 Performance Forecast (1)Record figures are expected for both new orders received and sales.
⇨ p. 30 FY 2024 Outlook (1), p. 34 Trends in New Orders Received (Cumulative),p. 61 Trend in Key Financial Data
AP-related business (Japan): Capital investment and facility maintenance costs, which were stagnant, areexpected to recover as profits at road pavement companies improve. Sales andoperating income are expected to recover along with expansion of investment for
decarbonization⇨ pp. 31–32 FY 2024 Outlook (2), p. 37 AP-Related Business
BP-related business: Positive order backlog year on year. Cost increases have been passed on appropriately
in the ready-mixed concrete plant market and stable demand is expected to continue
reflecting stable market⇨ pp. 31–32 FY 2024 Outlook (2), p. 39 BP-Related Business
Crusher-related business: Ukraine-related special demand fell off, and both sales and profits of the mobile
plant business are expected to decline.
However, the sales base is expected to expand reflecting replacement of ageing
facilities in Japan, expansion of facilities, and maintenance service for existingcustomers⇨ pp. 31–32 FY 2024 Outlook (2), p. 41 Other BusinessContract-based manufacturing business: Both sales and profits are expected to grow on the back of strong
orders in FY 2023 and high order backlog level at the beginning of
FY 2024.
New orders are expected to increase slightly compared with a year
ago, when the order level was high, and sales and profits are likely
to grow as various plant projects, which have been postponed, get
implemented⇨ pp. 31–32 FY 2024 Outlook (2), p. 41 Other Businesswww.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

2024 All rights reserved.

25

FY 2024 Performance Forecast (2)AP-related business (China): The initial order backlog of the AP-related business in China was up 70.9% fromthe end of the previous fiscal year and sales are expected to increase. However,orders are likely to be at a similar level to the previous year
⇨ p. 37 AP-Related Business, p. 49 AP-Related Business Details and Strategy for the Future (2)www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

2024 All rights reserved.

26

FY 2023 Performance Highlights (1)Results in comparison with the previous fiscal year
▶ Net sales: AP-related business (up 590 mil. yen), BP-related business (up 790 mil. yen), environment- and conveyor-related business (up 420
mil. yen), other business (up 2,610 mil. yen)
▶ Operating income: Net sales of the AP-related business in Japan recovered gradually reflecting an improvement in capital investment demandby road pavement companies. Ordinary income increased thanks to Matsuda Koki, which joined the Group in M&A, in the contract-based
manufacturing business and special demand for Ukraine restoration assistance in the crusher-related business▶ Ordinary income: Increased reflecting the rise in operating income▶ Orders: AP-related business (up 1,330 mil. yen), BP-related business (up 2,860 mil. yen), environment- and conveyor-related business (up1,250 mil. yen), other business (up 2,440 mil. yen)
▶ Order backlog: AP-related business (up 970 mil. yen), BP-related business (up 2,450 mil. yen), environment- and conveyor-related business(up 490 mil. yen), other business (up 790 mil. yen)(million yen)

FY 2022 results FY 2023 forecast FY 2023 results

YoY change(amount)

YoY change (%)

Net sales

39,66544,00044,097+4,432+11.2%

Operating income

1,028

1,900

1,968

+940

+91.4%

Operating margin

2.6%

4.3%

4.5%

–

+1.9ptOrdinary income

1,255

1,900

2,144

+889

+70.8%

1,020

1,200

1,312

+292

+28.6%

40,84943,03848,749+7,900+19.3%

17,656

16,694

22,371+4,715+26.7%Net income
attributable toowners of parent
New orders
received
Order backlog

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2024 All rights reserved.

27

FY 2023 Performance Highlights (2)(million yen)

FY 2022 results

FY 2023
forecast

FY 2023 results

YoY change(amount)

YoY change (%)

17,341

18,00017,938

+597

+3.4%

Operating income

49

150

331

+282

+575.5%

Operating margin

0.3%

0.8%

1.8%

–

+1.5ptNet sales

11,111

12,20011,907

+796

+7.2%

Operating income

1,017

1,350

1,341

+324

+31.9%

Operating margin

9.2%

11.1%

11.3%

–

+2.1ptNet sales
Environmentand conveyorOperating income
relatedbusiness
Operating margin

2,888

3,100

3,309

+421

+14.6%

522

700

793

+271

+51.9%

18.1%

22.6%

24.0%

–

+5.9pt8,324

10,70010,940+2,617+31.4%

1,044

1,350

1,314

+270

+25.9%

12.5%

12.6%

12.0%

–

(0.5 pp)

Net sales

AP-related
business

BP-related
business

Net sales

Other business(breakdown in the Operating income
following page)
Operating margin▶ Net sales of AP-related business: Net sales of products in Japan were up 85.8% YoY and those of maintenance services
increased 3.8%, while overseas net sales declined 43.7%▶ Net sales of BP-related business: Net sales of plant products fell 0.8% YoY while maintenance services rose 21.0%▶ Environment- and conveyor-related business: Net sales of the environmental products fell 0.7% YoY and those of
conveyors rose 19.8%
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2024 All rights reserved.

28

FY 2023 Performance Highlights (★ Breakdown of Other Business)(million yen)

FY 2022 results

FY 2023
forecast

FY 2023 results

YoY change(amount)

YoY change (%)

Net sales

2,217

3,550

3,198

+981

+44.2%

Operating income

175

350

274

+99

+56.6%

Operating margin

7.9%

9.9%

8.6%

–

+0.7ptNet sales

2,216

3,000

3,072

+856

+38.6%

156

300

270

+114

+73.0%

Operating margin

7.0%

10.0%

8.8%

–

+1.7ptNet sales

3,891

4,150

4,670

+779

+20.0%

Other business Operating income

711

700

769

+58

+8.2%

Operating margin

18.3%

16.9%

16.5%

–

(1.8 pp)

Crusherrelated
business

Contract-based
manufacturing Operating income
business▶ Net sales of crusher-related business:
Up 44.2% YoY▶ Net sales of contract-based manufacturing business: Up 38.6% YoY▶ Net sales of other business:
Up 20.0% YoY

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2024 All rights reserved.

29

FY 2024 Outlook (1)(million yen)
1H
FY 2023
results

Net sales

16,982

269

Operatingmargin1.6%

Net income
attributable toowners of parent

FY 2024
forecast

23,000YoY change+6,018+35.4%FY 2023
results

27,115Full year

FY 2024
forecast

25,000+1,031

OperatingincomeOrdinary income

2H

1,300

1,699

455

1,300

+4.1pt+845+185.7%

New orders
received

25,128Order backlog

25,986

850

44,097FY 2024
forecast

48,000

6.3%

1,689

5.2%

1,968

1,300

(1.1 pp)(389)+3,903+8.9%

2,600+32.1%

4.5%

5.4%

2,144

2,600

1,312

1,700

(23.0%)(114)
850

YoY change+632(23.5%)

964+0.9pt+456+21.3%+388+144.3%(11.8%)+29.6%(3,628)+129(3,499)21,50023,621

23,750(14.4%)
24,008(7.8%)

1,300

+502
348

(2,115)FY 2023
results(399)+383.3%
5.7%

YoY change(1,978)(7.6%)

48,74945,250+0.5%
22,371

20,500www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

(1,871)(8.3%)

2024 All rights reserved.

(7.1%)
22,371

20,500(1,871)(8.4%)

30

FY 2024 Outlook (2)(million yen)

1H
FY 2023
results

2H

FY 2024
forecast

Net sales

7,114

10,000AP-related Operating
business
income29880

Operatingmargin0.4%

8.8%

Net sales

5,049

6,300

BP-related Operating
business
income504

750

Operatingmargin

10.0%

11.9%

1,450

1,400

332

140

22.9%

10.0%

3,367

5,300

215

530

6.4%

10.0%

Environment Net sales- andconveyor- Operating
incomerelatedOperatingbusinessmarginOtherbusiness(breakdown in thefollowing page)

Net sales
OperatingincomeOperatingmarginYoYchange+2,886+40.6%+851+2,934.5%+8.4pt+1,251+24.8%+246+48.8%+1.9pt(50)(3.4%)(192)(57.8%)(12.9 pp)
+1,933+57.4%+315+146.5%+3.6ptFY 2023
results

Full year

FY 2024
forecast

10,824

9,800

302

320

2.8%

3.3%

6,858

6,500

837

700

12.2%

10.8%

1,859

1,800

461

240

24.8%

13.3%

7,573

6,900

1,098

1,040

14.5%

15.1%

YoY
change(1,024)(9.5%)+18+6.0%+0.5pt(358)(5.2%)(137)(16.4%)(1.4 pp)(59)(3.2%)(221)(47.9%)(11.5 pp)(673)
(8.9%)(58)(5.3%)+0.6ptFY 2023
results

FY 2024
forecast

17,93819,800

331

1,200

1.8%

6.1%

11,907

12,800

1,341

1,450

11.3%

11.3%

3,309

3,200

793

380

24.0%

11.9%

10,94012,200

1,314

1,570

12.0%

12.9%

YoY
change+1,862+10.4%+869+262.5%+4.3pt
+893
+7.5%
+109
+8.1%
+0.0pt(109)(3.3%)(413)(52.1%)(12.1 pp)
+1,260+11.5%+256+19.5%+0.4pt▶ AP-related business: Net sales and profits are expected to recover owing to improvement in capital investment and maintenancecosts as earnings of road pavement companies improve and as decarbonization-related investment rise
▶ BP-related business: Both sales and profits are expected to increase as the market stabilizes thanks to spread of higher prices ofready-mixed concrete▶ Environment- and conveyor-related business: There are many large-scale projects such as the World Expo in Osaka, IR-related
projects, and liquification treatment plants.
Orders, sales, profits, etc. are expected to recover. Orders for conveyor-related projects have been strong
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2024 All rights reserved.

31

FY 2024 Outlook (2)(million yen)

1H
FY 2023
results
Net sales

Crusherrelated
business

OperatingincomeOperatingmarginNet sales

Contractbased
Operatingmanufacturing income
business
OperatingmarginNet sales

Otherbusiness

OperatingincomeOperatingmargin2H

FY 2024
forecast

1,078

1,800

56

180

5.2%

10.0%

369

1,000

(32)

60

(8.7%)

6.0%

1,919

2,500

191

290

10.0%

11.6%

YoY
change+722+67.0%+124+221.4%+4.8pt+631+171.0%+92+287.5%+14.7pt+581+30.3%+99+51.8%+1.6ptFY 2023
results

Full year

FY 2024
forecast

2,120

1,100

218

20

10.3%

1.8%

2,703

2,300

302

220

11.2%

9.6%

2,751

3,500

578

800

21.0%

22.9%

YoY
change(1,020)(48.1%)(198)(90.8%)(8.5 pp)(403)(14.9%)(82)(27.2%)(1.6 pp)+749+27.2%+222+38.4%+1.9ptFY 2023
results

FY 2024
forecast

3,198

2,900

274

200

8.6%

6.9%

3,072

3,300

270

280

8.8%

8.5%

4,670

6,000

769

1,090

16.5%

18.2%

YoY
change(298)(9.3%)(74)(27.0%)(1.7 pp)
+228
+7.4%
+10
+3.7%
(0.3 pp)+1,330+28.5%+321+41.7%+1.7pt▶ Crusher-related business:[Mobile plants] Sales and profits are expected to decline as special export demand ends. Domestic demand is expected to be firm
thanks to replacement due to ageing of the facilities and facility expansion[Maekawa] Sales and profits are expected to grow reflecting strong orders primarily of recycling products▶ Contract-based manufacturing business: Sales and profits are expected to increase given strong orders in FY 2023 and high levelof order backlog at the end of the fiscal year against the backdrop of high manufacturing skills

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2024 All rights reserved.

32

FY 2023 Quarterly Performance Trend
Quarterly net sales and operating income trends

Net sales: 38,846

Net sales: 39,665

Net sales: 44,097

Operating income:Operating income:Operating income:

2,053

1,028

1,968

29,0002,900

24,0002,400

19,0001,900

14,000

1,400

9,000

900

4,000

400

▲ 1,000(100)

Net sales
Operating income
Operating margin
Order backlog

1Q

FY 2021
2Q
3Q

1Q

FY 2022
2Q
3Q

4Q

8,817

10,191

8,157

375

593

4.2％
15,2981Q

FY 2023
2Q
3Q

4Q

4Q

11,681

9,504

9,256

8,369

12,536

8,446

8,536

10,637

16,478

59

1,025

183

216

(32)

661

(99)

368

449

1,248

5.8％

0.7％

8.8％

1.9%

2.3%

(0.4%)

5.3%(1.2%)

4.3％

4.2%

7.6％

14,155

15,342

16,49017,202

16,66018,56017,656

19,98725,98625,642

22,371www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

2024 All rights reserved.

Operating income

Net sales and order backlog(million yen)

33

Trends in New Orders Received (Cumulative)
Full-year trend(million yen)
FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

YoYchangeFY 2023AP

16,553

16,71817,182

18,884

16,133

20,27918,18017,614

18,948

BP

9,517

9,965

9,066

8,438

9,478

9,961

12,086

11,461

14,323 +25.0%

Environment andconveyor

2,796

3,202

2,948

2,773

2,401

2,875

3,014

2,556

3,812 +49.2%

Other

4,203

4,247

4,420

5,007

5,902

6,894

6,572

9,216

11,664 +26.5%

Total

33,06934,13433,61635,10333,91540,00939,85340,84948,749 +19.3%

60,000AP

BP

Environment and conveyor

+7.6%

Other

50,00011,66440,00030,00020,00010,000

0

4,203
2,796

4,247
3,202

4,420
2,948

5,007
2,773
8,438

9,517

9,965

9,066

16,553

16,71817,182

18,884

FY 2015

FY 2016

FY 2017

FY 2018

5,902
2,401

6,894

6,572

2,875

3,014

9,961

12,086

11,461

20,27918,18017,614

18,948FY 2021

FY 2022

FY 2023

9,478

16,133

FY 2019

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FY 20202024 All rights reserved.

9,216

3,812

2,556
14,32334

Trends in Year-End Order Backlog
Full-year trend(million yen)

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

YoYchange

AP

6,027

6,356

6,359

8,808

7,423

8,235

7,725

7,998

8,975 +12.2%

BP

2,716

3,350

2,894

3,439

3,760

4,508

5,755

6,105

8,555 +40.1%

Environment andconveyor

815

1,390

387

385

152

636

631

281

778 +176.5%

Other

435

531

490

820

883

981

2,377

3,270

4,061 +24.1%

Total

9,997

11,62910,132

13,454

12,21914,361

16,49017,656

22,371 +26.7%

APBP

Environment and conveyor

Other

25,000

4,061

20,000778
15,00010,000

435
815
2,716

531
1,390
3,350

820
385
490
387
2,804

5,000

3,439

6,356

6,359

FY 2015

FY 2016

FY 2017

883
152
3,760

8,808
6,027

981
636

7,423

2,377
631

3,270
281

4,508

5,755

6,105

8,235

7,725

7,998

FY 2020

FY 2021

FY 2022

8,555

8,975

0
FY 2018

FY 2019

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2024 All rights reserved.

FY 2023
35

Trends in New Orders, Sales, Operating Income by Segment(million yen)
New orders received

40,00939,85340,849Other 6,894

Other 6,572

Other 9,216

Other 5,902

Environment and conveyors 2,875

Environment and conveyors 3,014

Environment and conveyors 2401

BP 9,961

BP 12,086

AP 16,133

AP 20,279

FY 2019

33,915FY 2023
43,038results

FY 2024
forecast

48,74945,250

Other 11,664

BP 9,478

Net sales

35,151Other 11,200

Environment andconveyors 2,556

Environment and conveyors 3,812

BP 14,323

BP. 11,200

AP 18,180

AP 17,614

AP 18,948

AP. 19,450

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

37,866

38,846

39,66544,09748,000

BP 11,461

Environment and conveyors. 3,400

Other 10,940

Other 12,200

Other 6,796

Other 6,660

Other 8,324

Environment and conveyors 2,390

Environment and conveyors 3,018

Environment and conveyors 2,888

BP 9,212

BP 10,389

BP 11,111

BP 11,907

AP 17,518

AP 19,467

AP 18,328

AP 17,341

AP 17,938

AP 19,800

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

3,779

4,600

Other 5,840
Environment and conveyors 2,634

BP 9,158

Environment and conveyors 3,200
Environment and conveyors 3,309

BP 12,800

Operating income (before subtracting corporate expenses)

3,461

3,771

3,346
2,633

Other 1,020
Environment and conveyors 562

Other 1,170

Other 1,313

Other 1,073

Environment and conveyors 482

BP 761

BP 879AP 1,118

AP 1,239

FY 2019

FY 2020

Other 1,044

Environment and conveyors 587

Environment and conveyors 522

BP 1,123

BP 1,017

AP 562

FY 2021

Other 1,570

AP 49

FY 2022www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

Environment and conveyors 793

BP 1,341
AP 331

FY 20232024 All rights reserved.

Environment and conveyors 380

BP 1,450
AP 1,200

FY 202436

AP-related business(million yen)

New orders received

18,18017,6144Q 5,108

4Q. 4,909

FY 2023
results

FY 2024
forecast

18,94819,4504Q 4,369

2H 8,200

3Q 3,725

3Q 4,024

3Q 4,590

2Q 4,529

2Q 3,021

1Q 4,519

1Q 5,094

1Q 5,227

FY 2021

FY 2022

FY 2023

2Q 5,625
1H 11,250

4Q 4,963

4Q 4,255

3Q 4,176

3Q 4,433

1Q 5,058

1Q 4,982

1Q 3,795

FY 2021

FY 2022

FY 2023

2Q 3,319

Operating income and operating margin

199

388

1.5% 1.8%

0.3%

1H 10,000
FY 2024

0.4%(2.4%)(3.3%)

1.8%

562
139

▶ Net sales
As earnings of road pavement companies
improved, signs of recovery emerged in capital
investment and maintenance expenses, which
had earlier been held back[Thailand] Sales of recycling plants increased triggered bysales promotion activities
Negative factors: [China]
Sales declined significantly as demand forplants rapidly decreased due to the completionof a cycle of large-scale road works coupledwith the uncertainties in outlook▶ Operating income

6.1%

Decarbonization-related investment including
foamed asphalt equipment increased, resulting
in higher profits
Negative factors: [China] Posted operating loss due to the large decline
in sales caused by a fall in demand and the
postponement of purchases[Thailand] Capital investment in plants and personnel
costs increased
FY 2024 estimates[Japan]

1,200

2.8%

327

As earnings of road pavement companies
improved, capital investment that had beenstagnant showed a recovery trend[Thailand] Demand increased as recycling demand got
vitalized
Negative factors: [China]
Demand declined considerably. Although Zero
Covid policy was lifted, it appears to take longfor the economy to recover partly due to theimpact of real estate recession

Positive factors: [Japan]

3Q 2,965

2Q 3,670

3.9% 4.2%

2H 9,800

4Q 7,859

2Q 4,131

2.4% 3.1%

19,80017,93817,341

Positive factors: [Japan]

Positive factors: [Japan]

FY 2024

Net sales

18,328▶ New orders received

132

239

331

[China]29

49[Thailand](92)

FY 2021

FY 2022(337)

Capital investment and maintenance expenses are expected torecover reflecting improvement in earnings of road pavementcompanies.
Sales and profits are expected to recover as decarbonizationrelated investment expands
Demand recovery appears to take time although there aresome signs of bottoming out thanks to the government’s
economic measures
Expecting a rise in operating margin with launch of new model
plants incorporating ASEAN needs along with demand
expansion for recycling plants

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2024 All rights reserved.

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AP-Related Business (Japan vs. Overseas)(million yen)Domestic net sales• Up 29.0% YoY• Plant products increased 85.8% from a year earlier• Maintenance service rose 3.8% from a year earlier

14,512

13,656
11,2534Q 4,612

4Q 6,368▶ Overseas net sales

4Q 3,501
3Q 2,738

3Q 2,249

3Q 2,081

2Q 2,839

2Q 2,564

2Q 3,215

1Q 3,467

1Q 2,939

1Q 2,848

FY 2021

FY 2022

FY 2023• Down 43.7% YoY[Exports] Down 28.8% YoY[China] Down 52.5% YoY[Thailand] Up 14.7% YoY○ China
The number of business negotiations is showing a recovery trend
thanks to the economic measures by the government, but competition
is intense and new purchases are being delayed as there are notmany large-scale highway projects
Sales have been stagnant for products for stationary plants due todelays in approval, etc.
○ Thailand
The Thai Department of Highways set forth recycled mixture
machinery standards and demand for recycling plants has started inearnest. Major road pavement companies in various areas havebegun introducing them
○ Exports (Taiwan, overseas operations)
Exports to Taiwan have been firm while parts sales have declined

Overseas net sales

6,088
4,672

4Q 755

4Q 352
3Q 1,438

3Q 2,184

2Q 1,291

2Q 1,106

1Q 1,591

1Q 2,043

FY 2021

FY 2022

Overseas ratio

3,426
4Q 1,490
3Q 885
2Q…
1Q 947FY 2023Japan▶ Domestic net sales▶ New overseas orders received and order backlog(%)

Overseas

New orders
31.5

31.4

32.3

25.5

68.5

68.6

67.7

74.5

1Q

2Q

3Q

4Q

FY 2021

41.0

36.4

40.8

35.1

59.0

63.6

59.2

64.9

1Q

2Q

3Q

4Q

FY 2022

25.0

14.8

75.0

85.2

1Q

2Q

19.2

80.8

19.1

80.9

China (Nikko Shanghai)

1,430 mil. yen(up 70.9%)

Thailand sales company(NAT/NIC)

2,140 mil. yen

1,090 mil. yen

810 mil. yen

440 mil. yen

Exports
3Q

FY 2023

4Q

Order backlog

3,500 mil. yen(up 12.3%)* The figure for exports is calculated by subtracting China, Thailand, andparts from overseas sales

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38

BP-related businessNew orders received(million yen)

FY 2023
results

FY 2024
forecast

14,32312,086

11,4614Q 3,644

4Q 3,540

3Q 2,796
2Q 2,504
1Q 3,142

3Q 2,819
2Q 2,303
1Q 2,799

FY 2021

FY 2022

11,2004Q 4,566

2H 5,400

3Q 3,560
2Q 3,694

1H 5,800

1Q 2,502
FY 2023

FY 2024

Positive factors: While volume of ready-mixed concrete declined,
investment appetite of users continue to be highgiven stable market resulting from spread of anincrease in ready-mixed concrete price▶ Net sales
Positive factors: Projects continued to increase throughout the fiscal
year thanks to the stable market▶ Operating income

Net sales

12,80011,907

10,83911,1114Q 3,561

4Q 4,467

3Q 1,690

3Q 2,837

2Q 3,617

3Q 1,330
2Q 2,933

1Q 1,972

1Q 2,381

1Q 2,313

FY 2021

FY 2022

FY 2023

4Q 4,021

2H 6,500

2Q 2,736

1H 6,300
FY 2024

Operating income and operating margin
9.9%▶ New orders received

9.2% 10.4% 8.9% 9.5% 7.6% 9.2%
10.9%

1,123

1,341

505 507
211

FY2021

10.0%
11.5% 11.3% 11.3%

1,017

609 667
196

7.3%

504

Positive factors: Operating margin increased as passing on of highraw material prices to selling prices graduallyprogressed

FY 2024 estimates
While ready-mixed shipment volume is expected to decline witheach passing year, the market of ready-mixed concrete industry has
stabilized with cost increases in electric power, raw materials, andtransportation costs being appropriately passed on to selling prices.
Stable capital investment demand is expected to continue

1,450

905

169

FY2022

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39

Environment- and conveyor-related business(million yen)

New orders received
FY 2023
results

FY 2024
forecast

3,812

3,014

3,400

2,556

4Q 1,220

4Q 9893Q 7392Q 763
1Q 523

4Q 634
3Q 706
2Q 628
1Q 586

3Q 852
2Q 836
1Q 902

FY 2021

FY 20222H 1,800

2,888

4Q 823

4Q 7503Q 614▶ Net sales

FY 2023

FY 2024

3,309

3,200

Positive factors: Six units of equipment for disposal of removed soil
related to World Expo in Osaka and treatment ofcontaminated soil in Fukushima
and sales of environmentally friendly burners cofiring pulverized coal and heavy oil▶ Operating income

4Q 1,023
2H 1,800
3Q 836

3Q 9162Q 1,157

2Q 582

2Q 807

1Q 424

1Q 640

1Q 643

FY 2021

FY 2022

FY 2023

15.4%

23.0%

19.3%

14.9%

587
15.6%
243

FY 2024

FY 2022793

332

FY 2024 estimates
Sales are expected to continue increasing thanks to firm sales of
conveyors
Sales and profits of the environmental business will settle as World
Expo-related projects end

23.6% 24.0%

540

318
236
147

FY 2021

19.6% 22.9%

522

379

66

18.1%

Positive factors: Operating income increased due to continued firmsales of conveyors and sales of similar
environmental models

1H 1,400

Operating income and operating margin
17.3%19.4%

Positive factors: An increase in the number of environmental
projects
Large-scale projects increased as we received anorder for NBS hopper for railways

1H 1,600

Net sales

3,018▶ New orders received

11.9%

380

126

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2024 All rights reserved.

40

Other Business(million yen)

New orders received

FY 2023
results

FY 2024
forecast

11,6649,216
6,572

4Q 2,987

4Q 2,547

4Q 1,966
3Q 1,786
2Q 1,252
1Q 1,568
FY 2021

11,2002H 6,100

3Q 2,337

3Q 2,154

1H 5,100

1Q 2,143

1Q 1,719
FY 2022

FY 2023

Net sales

FY 2024

12,20010,9408,324

2H 6,900

4Q 3,065
4Q 2,335

3Q 3,998

3Q 1,688

3Q 1,678
2Q 1,286
1Q 1,361

2Q 2,070

2Q 1,674

1Q 1,501

1Q 1,693

FY 2021

FY 2022

FY 2023

1H 5,300
FY 2024

Operating income and operating margin
14.4%
16.1%
12.0%
11.5%
1,073

2.1%

12.5%
7.1% 7.9%
1,042

623
157
1Q

31
2Q

3Q

FY 2021

11.4%
6.4%

4Q

1Q

104
3Q

FY 2022

12.9%
1,570

836

253
2Q

12.0%

1,314

6.1%

415

317

4Q

1Q

• Crusher-related business: Up 44.2% YoY• Contract-based manufacturing business: Up 38.6% YoY• Other business: Up 20.0% YoY▶ Operating income

4Q 3,575

6,660• Crusher-related business: Up 45.3% YoY• Contract-based manufacturing business: Up 42.2% YoY• Other business: Up 7.2% YoY▶ Net sales

2Q 4,195

2Q 2,796▶ New orders received

215
2Q

3Q

FY 2023

4Q

FY2024
forecast• Crusher-related business: Up 56.6% YoY• Contract-based manufacturing business: Up 73.1% YoY• Other business: Up 8.2% YoY
FY 2024 estimates• Crusher-related business:[Mobile plants] Net sales are expected to increase as we
expand sales to new customers and enhance
product lineup including soil improving machine,and profits are expected to expand owing tomaintenance services (excluding special
demand related Ukraine) for the products thatare already in the market through sales
expansion[Maekawa]
Expecting both sales and profits to increase as
the number of orders increases throughutilization of the new test center andcooperation with industrial machinery sales
department• Contract-based manufacturing business:
Orders are expected to slightly increase from FY 2023, when theorder level was high, and net sales and operating income are
expected to rise as various plant projects that had been
postponed are implemented

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41

Other Business (New Categorization of Segments)(million yen)

New orders received

11,664

11,200

9,216
Other
4,634

Other
4,324
Contract-based
manufacturing business
2,550

Other
6,000

Contract-based
manufacturing business
3,625

Contract-based
manufacturing business
3,100

Crusher-related business
2,342

Crusher-related business
3,403

Crusher-related business
2,100

FY 2022

FY 2023

FY 2024 forecast

Net sales

10,940
8324
Other
3,891
Contract-based
manufacturing business
2,216
Crusher-related business
2,217

FY 2022

12,200
Other
6,000

Other
4,670
Contract-based
manufacturing business
3,072

Contract-based
manufacturing business
3,300

Crusher-related business
3,198

Crusher-related business
2,900

FY 2023

FY 2024 forecast

Operating income and operating margin
Other
Contract-based
manufacturing
Crushers

18.3％

16.5％

18.2％

7.0％

8.8％

8.5％

7.9％

8.6%

1,042
Other
711
Contract-based
manufacturing…
Crusher-related business 175

FY 2022

6.9％

1,570

1,314

▶

New orders received◯ Crusher-related business
Up 1,061 mil. yen YoY[Mobile plants]
36 units worth 1,990 mil. yen a year earlier→ 46 units worth 3,081 mil. yen[Stationary crushers] 17 units worth 126.3 mil. yen a year earlier→ 22 units worth 209.1 mil. yen[Mobile plants]
Inquiries in Japan primarily led by KLEEMANN
products continued to increase along with inquiries
regarding new products[Stationary crushers] Orders increased thanks to strong inquiries for the next
fiscal year
◯ Contract-based manufacturing business[Ube Kohki]
Up 451 mil. yen YoY[Matsuda Kiko] Recorded 491 million yen since Sept. of the current fiscal year
Inquiries to both Ube Kohki and Matsuda Kiko increased led bywater treatment and environmental products and orders grew▶

Net sales◯ Crusher-related business
Up 981 mil. yen YoY[Mobile plants]
37 units worth 1,795 mil. yen a year earlier→ 47 units worth 2,896 mil. yen[Stationary crushers] 23 units worth 250.2 mil. yen a year earlier→ 15 units in 123.7 mil. yen[Mobile plants] Inquiries in Japan continued to increase; special export demand
for ODA to Ukraine[Stationary crushers] Sales declined due to slow orders from sales during the
fiscal year and lack of large-sized projects◯ Contract-based manufacturing business[Ube Kohki] Up 305 mil. yen YoY[Matsuda Kiko] Recorded 467 mil. yen since Sept. of the current fiscal
year
Sales increased YoY reflecting high order backlog at the beginning of the fiscal
year

Other
1,090

Other
769
Contract-based
manufacturing business
270
Crusher-related business
274

Contract-based
manufacturing business
280
Crusher-related business200

FY 2023

FY 2024 forecast

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42

Factor Analysis of Changes in Ordinary Income for FY 2023
Decrease

Increase

Total(million yen)(763)

(million yen)

Item

ImpactNet sales+1,153

Increase in net sales
4,432 mil. yen

Cost-of-sales ratio+976

Improvement in cost-ofsales ratio(excluding labor costs)
74.0%→72.5%

Personnel costs(763)

Increases in number of
employees and base pay

R&D expenses(26)

Increase in development
expenses

(26)
(138)
(131)

FY 2023

Change in othernon-operating
income(101)

Compensation
for damage

Other SG&A
expenses

Travel and transportation
expenses, entertainment
expenses

Business
combination

R&D expenses

Personnel costs

Cost-of-sales ratio

Net sales

FY 2022(129)www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

Content

Business combination(138)

SG&A expenses of
Matsuda Kiko andexpenses related toshare acquisition

Travel andtransportation
expenses,entertainment
expenses(131)

End of the pandemic,
increases in businesstravels and entertaining

Other SG&A
expenses(129)

Increases in office
expenses, etc.

Compensation fordamage(101)

Increase incompensation fordamageChange in other nonoperating income+48

2024 All rights reserved.

43

Factor Analysis of Changes in Ordinary Income for FY 2024
(Forecast)
Increase

Decrease

Total(million yen)(million yen)

(580)

(47)

(66)

Item

ImpactContent

Net sales, cost-ofsales ratio+1,175

Increase in net sales
3,903 million yen(580)

Increase in wage (240)
Increase in number of
employees (300)
Sales 40.0 bil. RS (40)(26)

Personnel costs(47)

Increase indevelopment
expenses

Business
combination(66)

Include Nishinihon
Fudosan in income
statement from the162nd business year

Change in other
SG&A expenses
and non-operating
income(26)

FY 2024

Change inother SG&A
expensesand nonoperating
incomeBusiness
combination

R&D
expenses

Personnel
costs

Net sales,
cost-ofsales ratio

FY 2023

R&D expenses

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44

Balance Sheet Trends(million yen)

End of FY 2022

End of FY 2023

ChangeMain factors in year-on-year change
Cash and cash equivalents
Accounts receivable-trade
Work in process
Electronically recordedmonetary claims
Decrease: Other
Notes receivable-trade
Merchandise and finishedgoods+5,234 mil. yen+2,330 mil. yen+900 mil. yen+186 mil. yen

Increase:+1,760 mil. yen+842 mil. yen+326 mil. yen+230 mil. yen(432 mil. yen)
(76 mil. yen)

Increase:

33,72341,033+7,310Property andequipment

11,83913,247+1,408Intangible
assets

1,020

1,208

+188

Investments andother assets

5,544

6,740

+1,19652,12762,229+10,102

Current liabilities

15,33821,743+6,405Long-term
liabilities

5,184

7,399

+2,21531,60433,086+1,482Current assets

AssetsTotal assets

Liabilities

Total net assets

Net assets per share (yen)826.73861.74

Investment securities
Construction in progress
Land
Buildings and structures
Decrease: Deferred tax assets
Other intangible assets(646 mil. yen)(584 mil. yen)(163 mil. yen)

+2,854 mil. yen
Short-term loans payable+2,101 mil. yen
Long-term loans payable+912 mil. yen
Contract liabilities+700 mil. yen
Income taxes payable+513 mil. yen
Accounts payable-factoring+244 mil. yen
Notes and accounts payable-trade(90 mil. yen)
Decrease: Provision for loss on order received
Increase:

Increase:

Valuation difference on
available-for-sale securities
Retained earnings+1,158 mil. yen+163 mil. yen+35.01www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

2024 All rights reserved.

45

Business Climate andManagement Strategy

AP-Related Business Climate and Outlook
Sales trends of listed road pavement companies (total for five companies) andNikko’s AP-related business(million yen)
500,000

Five listed road pavement companies

Nikko’s AP-related business

450,000

AP steady-state share
Unknown

30,00025,000400,000

0.7%
Other 1.9%
Tanaka Iron
Works19.9%

20,000350,000

Nikko

300,000

77.5%

15,000250,000

10,000200,000

FY 2023 Nikko survey

Sales ratio of APrelated business

5,000

150,000
100,000

0

Thailand business
Chinese business
3.3%
12.6%
Exports

Plant sales

3.2%

35.8%

Maintenance service
45.1%(FY 2023)▶ The industry has been pursuing price increase of asphalt mixture and business performance of the industry as a whole is expected to improve
gradually▶ There is latent demand for replacing aged facilities and appetite for capital investment is expected to recover along with an improvement inbusiness performance of the industry as a whole▶ Inquiries for decarbonization-related products has been increasing and the Group is placing hope on continued growth of such products.
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47

AP-Related Business Details and Strategy for the Future (1)New product performance in
AP-related businessAP demand and Nikko share
100(V) industry units(R) Nikko share(R) industry units
Overall Nikko share

100%(V) Nikko share

Number of newmodel APs
(VP and MBD)

60%

60

40

40%

20

20%

0

FY
2024
forec
ast

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

23

(R) industry units

12

20

15

9

14

14

25

25

29

22

29

22

29

26

30

37

23

11

14

9

(V) industry units

5

6

10

3

7

10

10

8

18

10

16

14

14

19

17

16

18

7

12

10

Nikko plant share

80%

80

Industry: number of plants(units)Number ofcrushing plants
Number ofdecarbonization-related
products

18

19

20

21

3

5

2

3

2

5

0

2

2

1

1

1

3

2

2

9

19

55

22 FY 2023

★Decarbonization-related products(Foamed asphalt device, biomass burner, etc.)

0%(V) Nikko share

60% 67% 70% 0% 71% 70% 80% 75% 72% 60% 81% 79% 57% 42% 59% 75% 72% 57% 67%

60%(R) Nikko share

75% 65% 60% 67% 71% 71% 84% 68% 69% 73% 76% 82% 72% 62% 57% 76% 65% 73% 71%

56%

V: Virgin mixtures
R: Recycled materials

Overall Nikko share 71% 65% 64% 50% 71% 71% 83% 68% 70% 69% 78% 74% 67% 53% 57% 75% 68% 67% 69%

58%

Source: Nikko▶ Aim to improve profits by expanding sales of standardized asphalt plants and VP series (large-sized model VP-IV and standard model VP-III)▶ Strengthen decarbonization-related products and aim to reduce CO2 emissions from 50% in 2030 to 0% in 2050
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48

AP-Related Business Details and Strategy for the Future (2)Nikko Shanghai net sales

Nikko’s overseas net sales and overseas sales ratio

5,000

18.0%

8,000

4,829

14.0%

6,000

6,154

4,000

2,000

6,000

4,747

4,390
3,965 3,838

12.0%
10.0%
8.0%

3,730

2,825 2,980 2,956

6.0%

3,467

4,000
Net sales (mil. yen)

3,637

3,000
2,000

3,141

3,353

3,824

3,665

3,509

2,300
1,889 1,962 1,999

1,000

4.0%

0

2.0%
0

14

15

16

17

Net sales

18

19

20

21

22

23

FY 24
forecast

0.0%

Nikko Shanghai AP unit sales

Percentage of Group net sales[China (Nikko Shanghai)]
While it is hard to judge because of the huge size and complex nature of the Chinese
market, construction related industry appears to be greatly affected by the financial situationof the real estate industry and regional governments, and we are facing intense competition
with local manufacturers again this fiscal year. We will secure a certain volume of sales
through sales expansion of new models as we work on cost reduction.
[Thailand]
Budget is expected to focus on maintenance works for existing roads and expansion works
for existing roads, airports, etc. The Department of Highways (DOH) announced thespecifications for recycle mixture plants, and there has been an increase in inquiries frommajor mixture plant operators aiming to become pioneers in recycled mixture. The volumeof mixture is high in the northeastern and eastern regions of the country and demand in thenortheastern area is expected to continue in the next fiscal year and onwards.
[Taiwan, exports]
In Taiwan, business negotiations for parts and for partial replacement are expected tocontinue and we will strengthen our MS structure.
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30

Net sales volume (units)

Net sales (mil. yen)

16.0%

20

10

2
1
8

1
4
8

3
3
9

6

5
0

0
12

15

6
3

8

7

7

4

5

2
12

8

11

10

3
2

8

6

5

1

0

Virgin2024 All rights reserved.

Recycling

Virgin and recycling plants
49

BP-Related Business Climate and Outlook
Sales ratio of BPrelated business

Trend in sales of listed cement manufacturers (total of two companies)
1,300,000
1,100,000

Exports

Nikko Shanghai

0.1%

0.3%
Concrete pumps

900,000

1.6%
700,000

Maintenance

500,000

service…

53.0%

300,000
100,000

Mar.
2010

Mar.
2011

Mar.
2012

Mar.
2013

220

March
2014

Mar.
2015

Mar.
2016

Mar.
2017

Mar.
2018

Mar.
2019

Mar.
2020

Mar.
2021

Mar.
2022

Mar.
2023

Mar.
2024

Mar.
2025
forecast

204.6
167.3
153.0
145.1
130.7

Ready-mixed concrete unit price index (FY 2015 = 100)

190
160
130
100

92.8

70
40

Plant sales

13

14

15

16

17

18

19

20

FY 2021

FY 2022

FY 2023

SapporoSendaiTokyo
NagoyaOsaka
Source:Economic Research Association▶ Ready-mixed concrete shipment in Japan was 70.18 million m3 in FY 2023 according to National Federation Ready-Mixed Concrete Industrial
Associations, which was below the level a year earlier. Both private demand and public demand have been stagnant and are yet to recover. Under
such circumstances, the ready-mixed concrete industry adequately passed on the increases in costs of electricity, raw materials, and transportation to
the selling prices in the market despite the decline in the number of ready-mixed concrete plants reflecting the downward trend in shipment volume,and price of ready mixed concrete price has been stable
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50

BP-Related Business Details and Strategy for the Future
Total BP demand (value and number of units)

BP steady-state share trends
Units by Nikko

300

160

120

76

194

209 201 199

186

48

198
170

100

90
73

72
57

100

98

52

151
116 123

55

199

218

239 240 233

60

77

80

71 71

271
259
267
241 251

60

60

220

140

40

Number of BPs in Japan (units)

93 93

Demand (units)

Demand (100 mil. yen)99

27.1% 27.7%27.8%

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 FY
23Total demand

Total shipped units

0

29.6%
28.4%

3,298

3,266 3,196

3,170 3,067

35%

33.3%
32.6% 33.0%
30%
32.0%
31.1%
30.4%

25%

2,519 2,467 2,458 2,431 2,347 2,297 2,250

2,000

2,174 2,138

2,054 2,037

20%

15%

1,000

10%

937 947 948 965 988 1,001 1016 1022 1032 1013 1017 5%20

03,396 3,335

3,000

105
97

40%
3,456 3,414 3,406

140

200

Nikko share

4,000

140 140

113

Units by others

0

13

14

15

16

17

18

19

20

21

22

FY
2023

0%

Source:Japan Construction Equipment Manufacturers Association’s BP Subcommittee(Maintenance services included in demand amount)▶ Total demand related to concrete plants has increased for five consecutive years, reaching 27.1 billion yen in FY 2023
with the delivery of 60 units. For the current fiscal year, demand of a similar level as FY 2023 is expected.
▶ Increase market share by launching new differentiated products to meet new demand, which arises from sales
expansion to precast industry, where demand continues to grow, as well as from ready-mixed concrete industry
consolidation.
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2024 All rights reserved.

51

Maintenance Service Business Net Sales Level and ShareAP and BP maintenance service: Net sales level and share

70%

64.8%
60.7%

62.8%

62.2%
59.5%

54.7%

56.5%

18,000

54.2%
51.5%

54.2%

53.9%

53.8%

60%

55.5%

MS sales (mil. yen)

51.4%
15,00050%

12,000

40%

9,000

30%

12,547

6,000
9,811

9,398

12,135

12,511

12,286

12,05012,65013,402
12,033

13,036

12,235

13,45920%

10,6183,000

0Percentage share of MS in domestic AP and BP segment

21,000

10%

10

11

12

13

14
MS net sales

15

16

17

18

19

20

21

22

FY 23

0%

Percentage share of MS in domestic AP and BP segment

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2024 All rights reserved.

52

Environment- and Conveyor-Related Business Outlook and Strategies(million yen)

Net sales

3,931
2,853

14

2,289
15

2,647

16

17

2,775

2,634

2,390

18

19

20

3,018

2,888

21

22

3,309

3,200

23

FY 24
forecast

Sales ratio of environment- andconveyor-related businessConveyor
service Environmental
products
2.9%
19.1%

Operating income
Conveyor
products
78.0%

793
562

527

14

337

369

308

15

16

17

417
18

19

482

20

588

21

522

22

380
23

FY 24
forecast

Net sales annual growth rate

Operating margin
18.5%

15.0%

14.7% 13.9%

21.3% 20.2% 19.5%
18.1%

11.9%

7.8%

14

15

16

17

18

FY 2022  FY 2023 results

24.0%

19

20

21

22

23

www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

Environmental products(0.7%)

Conveyor products+19.8%

Conveyor service(0.9%)

FY 24
forecast

2024 All rights reserved.

53

Other Business Outlook and Strategies(million yen)

Net sales
10,00010,9415,000
04,495 4,301 4,133 4,480 4,677
14

16

5,840 6,790 6,660

18

20

Other business sales

12,200Temporary
construction
Othermaterials
16.0%
13.0%
Waterproof
Matsudaboards,
Kikofloodgates
4.3%
13.7%
Ube Kohki
Hand tools
22.5%
6.7%
Nikkodeveloped
Mobileproducts
plants4.8%
16.4%
Crushers
2.7%

8,324

22

FY 24
forecast

Operating income
1,020
451
14

277

417
16

462

14

6.4%

18

20

22

FY 24
forecast

Net sales annual growth rate
FY 2022  FY 2023 results

17.5% 17.2% 16.1%

10.1% 10.3% 10.7%

16

1,570

502

Operating margin
10.0%

1,170 1,073 1,044

1,314

18

20

12.5% 12.0% 12.9%

22

www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

FY 24
forecast

Temporary construction+3.4%
materials+29.4%
Waterproof boards, floodgates(2.1%)
Hand tools+61.9%
Mobile plants(30.9%)
Crushers(5.9%)
Nikko-developed products+14.1%Ube Kohki
Sales of Matsuda Kiko were incorporated
from FY 2023

2024 All rights reserved.

54

Financial Strategy
Balance sheet trends(million yen)

Cash and cash equivalents

Accounts receivable-trade

Notes and accounts payable-trade

Interest-bearing debts

Inventories

Non-current assets

Other liabilities

Other assets

Net assets

Total assets 62,229
15,551

Total assets 40,348
3,803
2,190

8,553

8,188

10,347

12,359

3,760
4,199

6,026

12,274151st

2013年度March 2014

13,167

11,007

8,629

11,562

26,167

10,716

Total assets 43,969
3,208
1,718

7,420

11,64930,414
6,925
8,312

14,45533,086

7,407
161st

156th

2018年度March 20192023年度2Q
March 2024

▶ We will continue with the sale of strategic shareholdings.
▶ Aim to enhance shareholder returns (to continue with divided payout ratio of 60% or more during the current
medium-term plan)
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2024 All rights reserved.

55

Reference Materials

Business Segments

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2024 All rights reserved.

57

Capital and Financial Strategy
To liquidate assets worth approx. 5 bil. yen (as of the end of FY 2018) lying
dormant on the balance sheet into cash
Sales results for the period from(i) Sale of strategic shareholdings:
FY 2019 to FY 2023: 2.3 bil. yen
about 2 bil. yen
Status of reducing strategically-held shares (in mil. yen)
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Number of issues sold completely
5
7
6
6
6
4
0
2
Amount sold in the period
193
405
194
720
506
691
371
13
Book value
132
221
106
272
468
376
192
10
Sales gain
61
184
88
448
37
314
178
3

(ii) Efforts to improve CCC

FY 2023: A negative impact of 0.5 bil. yen

150
150

(days)(days)

100
100

50
50

00

2010
2010

2011
2011

2012
2012

2013
2013

2014
2014

2015 20162016 20172017 2018 2018 2019 20192020 2020
2015
2021

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2024 All rights reserved.

2021
2022

20222023
FY
58

Trends in Net Sales, Profit, Cash Flows, and Other Indicators(million yen)
FY 2021

FY 2022

FY 2023

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

8,817

10,191

8,157

11,681

9,504

9,256

8,369

12,536

8,446

8,536

10,637

16,478AP-related business

5,058

4,131

4,176

4,963

4,982

3,670

4,433

4,256

3,795

3,319

2,965

7,859

BP-related business

1,972

3,617

1,690

3,561

2,381

2,933

1,330

4,467

2,313

2,736

2,837

4,021

424

1,157

614

823

640

582

916

750

643

807

836

1,023

1,361

1,286

1,678

2,335

1,501

2,070

1,688

3,065

1,693

1,674

3,999

3,575

375

593

59

1,026

183

216

(32)

661

(99)

368

449

1,250

AP-related business

199

189

(61)

235

139

(7)

107

(190)

(92)

121

(366)

668

BP-related business

196

413

58

456

211

294

2

510

169

335

401

436

Environment- andconveyor-related business

66

177

136

209

147

89

82

204

126

206

208

253

Other business

157

160

306

450

31

222

163

628

104

111

622

477

Corporate expenses

(244)

(345)

(382)

(322)

(345)

(382)

(388)

(490)

(407)

(405)

(415)

(584)

Ordinary income

519

586

89

1,079

326

222

(19)

726

67

388

520

1,169

Net income attributable to ownersof parent

378

489

16

766

140

119

(35)

796

27

321

246

718

Net sales

Environment- andconveyor-related business
Other business
Operating income

Cash flowfrom operating activities
Cash flowfrom investing activities
Total dividend
Share buyback

687

2,224

(1,644)

4,332(2,165)(1,226)(2,333)

–

573

–

573

–

0

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574

–

0

2024 All rights reserved.

574

–

574

–

–

59

Trends in Capital Investment, Depreciation and Amortization, R&D
Expenses, and Nonfinancial Data
(million yen)

Capital investment
Depreciation and amortization
R&D expenses

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

844
395
295

815
422
276

877
487
227

1,261
482
271

550
472
291

1,889
508
211

1,483
611
379

2,748
677
392

1,907
759
449

2,214
990
576

2,308
1,023
603

(persons, years old, or years)
Number of employees(consolidated)
Average age of employees(non-consolidated)
Average years of service(non-consolidated)
Female employees(non-consolidated)
Number of new-graduate hires(non-consolidated)
Number of female new-graduate
hires(non-consolidated)
Percentage of female hires(non-consolidated)
Number of foreign-national hires(non-consolidated)
Number of foreign-national
employees(non-consolidated)
Foreign national employees(consolidated)
Overseas employees(consolidated)

767

796

803

797

807

799

838

861

1,038

1,064

1,117

43.3

43.1

42.2

42.3

42.2

40.9

41.1

41.1

40.8

40.3

39.7

20

19.3

18.2

18.5

18.3

16.0

15.8

15.4

15.3

14.7

14.0

31

33

39

42

42

45

51

55

59

69

79

21

21

30

17

19

15

14

13

29

32

32

1

3

1

2

0

0

0

0

3

6

6

4.7%

14.2%

3.3%

11.7%

0%

0%

0%

0％

10.3％

18.8%

18.8%

6

0

0

0

1

1

0

1

0

8

9

8

6

6

6

7

8

5

5

6

13

21

91

95

94

93

101

98

116

116

194

205

225

91

95

92

91

101

98

123

121

197

214

212

New products for reducing environmental impact
FY 2013
New products[Sand dryer] [Hightemperature
preheating burner]• Higher plant

production
Featuresefficiency
reducing
environmental • Energy saving
impactFY 2014

FY 2015[NTB-II burner]• Energy saving• Higher combustion
efficiency in
combustion range[Newly designed bag
filter]

FY 2016[VP Series APs]

• Space saving• Preventing diffusion of• Energy saving
recycled material• Exhaust gas reduction odorous gas• Low noise

www.nikko-net.co.jp ⓒ Copyright NIKKO CO., LTD.

FY 2017

FY 2018

FY 2022–[Foamed asphalt
manufacturing
equipment][Powdered fuel burner][Hydrogen burner]–• Support for
manufacture ofwarm-mix asphalt

2024 All rights reserved.

• Aimed at burning powderedbiomass fuels• Reduce CO2 emissions fromburners• Hydrogen-only burner, which canalso be co-fired with city gas
60Trend in Key Financial Data
Operating margin and ROE
8.0%

Operating margin (%)

7.0%

ROE (%)

6.8%

6.6%
5.9% 6.0%

6.0%
6.0%

4.8%4.8%

4.0%

2.0%

2.3%

2.4% 2.1%

1.6%

2.1%

4.6%

6.0%
5.2%

5.2%

4.9%

4.5%
2.6%
4.1%

4.4%

2.0% 2.2% 3.6% 3.4%

1.1% 0.8% 1.3%

5.3%

4.5%

4.4%

1.6%

5.8%

1.1%

3.2%
2.0%

1.2%

0.0%

1.0% 0.7%

0.5%(0.4%)
0.5%

0.5%(0.2%)(0.4%)(2.0%)

0.7%

1.1%(1.2%)(2.1%)(4.0%)(6.6%)

All-time high figures(6.0%)

Operating income: 2,700 mil. yen (FY ended Nov. 1990)

Net sales: 44,000 mil. yen (FY ended Mar. 2024)

ROE (post 1994 capital increase): 6.8% (FY ended Mar. 2021)(8.0%)(10.0%) (8.9%)
98
99

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

FY
2023

(million yen)

Net sales

0

１

２

３

４

５

６

７

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

FY 2023

25,03526,942

23,85623,971

23,80324,55327,08732,07330,707

34,11032,71735,114

31,78035,151

37,866

38,846

39,66544,09722,59523,17024,307

24,812

24,864

22,175

Operating income(loss)

536

492

379

248

185

(55)

271

189

(98)

265

470

541

1,186

2,249

1,832

1,629

1,944

2,103

1,427

2,053

2,302

2,053

1,028

1,968

Ordinary income

846

664

688

492

537

350

699

545

482

899

812

621

1,108

1,982

1,582

1,648

1,993

2,239

1,576

2,142

2,973

2,274

1,255

2,144

Net income (loss)

298

(93)

(284)

567

265

203

315

513

(499)

124

461

122

881

888

1,348

1,896

1,340

1,490

1,345

1,588

2,082

1,649

1,020

1,312

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61

Update the social infrastructure by leveraging
engineering that is one step ahead of others.

Please feel free to contact us if you desire a meeting or have other requests.

Tel: +81-78-947-3141

E-mail: IR-nikko@nikko-net.co.jp

Contact: Hachiken, Finance Department, Nikko Co., Ltd.
 Future projections and other forward-looking statements in this material were prepared based on information currently available to the

management.
 These statements contain risks and uncertainties, such as changes in performance outlook due to the financial situation for theCompany in Japan and abroad, industry trends, product demand and supply, advances in new technology, and other factors.
Accordingly, investment decisions should not be made based only on the forward-looking statements in this material.
 Note also that forward-looking statements in this material are subject to change without prior notice, except where procedures are
required by law.
www.nikko-net.co.jp ⓒ Copyright

NIKKO CO., LTD.

2023 All rights reserved.

62