Financial Results for First Quarter of Fiscal Year Ending March 31, 2020
[Japanese GAAP] (Consolidated Data)
August 7, 2019
Company Name:

Nikko Co., Ltd.

Stock Code:

6306

Stock Exchange Listing: Tokyo Stock Exchange
URL: http://www.nikko-net.co.jp
Representative Director
and President
Senior Managing
Director and General
Manager of the Finance
Department

Representative:

For inquiries:
Scheduled date for filing thequarterly report:
Quarterly earnings supplementary
explanatory materials:
Quarterly financial results briefing
session:

August 9, 2019

Masaru Tsuji

Hiroshi Fujii

Telephone: +81-78-947-3141

Scheduled date for cash dividends:–

Yes
Yes (for institutional investors, analysts and newspaper reporters)(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for First Quarter of Fiscal Year Ending March 31, 2020 (April 1, 2019 - June 30, 2019)(1) Consolidated Operating Results (cumulative)(Percentage figures are year-on-year changes.)
Quarterly net income
Net sales
Operating income
Ordinary income
attributable to ownersof parent
million yen%
million yen%
million yen%
million yen%
Three months ended
8,001
47.7
276
–
361 315.4
270 106.6
June 30, 2019
Three months ended
5,415 (12.4)(26)–
87 (46.2)
130 (28.2)
June 30, 2018
Note: Comprehensive
income:Three months ended
June 30, 2019

yen

Diluted quarterly
net income
per share
yen

35.27

–

17.09

–

Quarterly net income
per share
Three months ended
June 30, 2019
Three months ended
June 30, 2018

(2) Consolidated Financial Position
Total assets
million yen
Three months ended
44,099June 30, 2019
Fiscal year ended
43,969March 31, 2019
(Reference) Capital:

Three months ended
June 30, 2018

27 million yen (- %)Three months ended
June 30, 2019

Net assets
million yen%

Net assets per shareyen

30,211

68.5

3,942.37

30,41469.2

3,968.79

Fiscal year ended
March 31, 2019

30,414 million yen

30,211 million yen– 1 –(9 million yen) (- %)Equity ratio

2. Dividends

Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020
(Forecasts)

Annual dividends
End of 3Q
yen

End of 1Q
yen

End of 2Q
yen

Year-end
yen

Total

–

30.00

–

30.00

60.00

100.00

–

20.00

–

yen

–

(Note) Revision of previously announced dividend targets during this reporting period: Yes
The company plans to carry out a one-to-five split of its common stock effective as of October 1, 2019. The annual dividend target figure
for the fiscal year ending March 31, 2020 (forecast) takes this stock split into account. Note the change this time is due solely to the stock
split and in effect does not change the initial forecast year-end dividend target of 100.00 yen.

3. Consolidated Performance Forecast for the Fiscal Year Ended March 31, 2020 (April 1, 2019 - March 31, 2020)(Percentages indicate year-on-year changes from full fiscal year and first half of theprevious fiscal year, respectively)
Net income attributable Net income
Net sales
Operating income
Ordinary income
to owners of parent
per share
million yen% million yen%
million yen%
million yen%yen
2Q (first half)
16,600 12.9
1,100
131.9
1,250
109.8
900
59.5
117.47Full year
35,700 12.3
2,300
61.2
2,500
58.5
2,000
48.7
52.21
(Note) Revision of previously announced earnings forecasts during this reporting period: None
The company plans to carry out a one-to-five split of its common stock effective as of October 1, 2019. The net income per share target
figure for full fiscal year ending March 31, 2020 takes this stock split into account. Note the change this time is due solely to the stock split
and in effect does not change the initially forecast full-year net income target of 261.04 yen.

– 2 –

*Notes(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve
changes in the scope of consolidation): None
Newly added companies: None (Company names: －) / Excluded companies: None (Company names: －)(2) Use of special accounting methods for preparation of quarterly consolidated financial statements: None

(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatements(i) Changes in accounting policy arising from revision of accounting standards, etc.: None(ii) Changes in accounting policy other than those noted in (i) above:None(iii) Changes in accounting estimates:None(iv) Retrospective restatements:
None(4) Shares issued (common stock)(i) Number of shares
outstanding at end of period(including treasury shares)(ii) Number of shares held intreasury at end of period(iii) Average number of shares
outstanding during the period

1Q of fiscal year ending
March 31, 2020

8,000,000 sharesFiscal year ended
March 31, 2019

8,000,000 shares

1Q of fiscal year ending
March 31, 2020

336,589 sharesFiscal year ended
March 31, 2019336,569 shares

1Q of fiscal year ending
March 31, 2020

7,663,424 shares

1Q of fiscal year
ended March 31, 2019

7,661,642 shares*This report is not subject to quarterly review procedures by certified public accountants or an auditing firm.

*

Explanation of the appropriate use of earnings forecasts, and other special notes(Cautionary statement with respect to forward-looking statements)
Any forecasts and forward-looking statements given herein are based on information available as of this report’s
publication and on certain assumptions that are deemed reasonable and these forecasts are not guarantees of future
performance. Actual results may differ significantly from forecasts due to various factors. For the assumptions
underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to “1. Qualitative
Information on Quarterly Results: (3) Explanation About Forward-Looking Statements, Including Forecast ofConsolidated Financial Results” on page 2 in the accompanying materials.
(How to obtain quarterly earnings supplementary explanatory materials)
The Company is scheduled to post the quarterly earnings supplementary explanatory materials on its website on
Wednesday, August 7, 2019.

– 3 –Accompanying Material – Table of Contents
1.

Qualitative Information on Quarterly Results .................................................................................................................2(1) Explanation About Operating Results ....................................................................................................................2(2) Explanation About Financial Position ....................................................................................................................22.

(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results ...........2
Quarterly Consolidated Financial Statements and Notes .............................................................................................. 3(1) Quarterly Consolidated Balance Sheet .................................................................................................................3(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ...............5
Quarterly Consolidated Statement of Income
Three Months Ended June 30, 2019 ..................................................................................................................5
Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2019 ..................................................................................................................6(3) Notes to Quarterly Consolidated Financial Statements .........................................................................................7(Going Concern Assumption) .............................................................................................................................. 7(Notes on significant changes in the amount of shareholders’ equity)...................................................................7(Changes in Accounting Policy) ............................................................................................................................. 7(Additional Information) .........................................................................................................................................7– 4 –1. Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the reporting period, the global economy faced an increased uncertainty amid concerns over trade friction
between the United States and China and Brexit, and the situation hangs in balance. On the other hand, theJapanese economy remains on a gradual recovery track as corporate earnings, and employment and income
environment improved, supported by the Bank of Japan and the government’s reflationary policy.
Amid such circumstances, the construction industry, which has a significant bearing on our group, remains stable,
but uncertainty remains as issues such as rises in material and logistics costs and risk of work delays due to labor
shortage are yet to go away.
In the fiscal first quarter, consolidated net sales increased 47.7% from a year earlier to 8,001 million yen.
Consolidated operating income totaled 276 million yen, down 26 million yen year-on-year, consolidated ordinary
income totaled 361 million yen, up 315.4% year-on-year, and quarterly net income attributable to owners ofparent reached 270 million yen, up 106.6% year-on-year.
In order to have an appropriate grasp of the operational situation and for the disclosure of the quarterly
consolidated financial statements, the Company has used financial statements dated December 31 for two of theoverseas subsidiaries that settle accounts on that date, including Nikko (Shanghai) Construction Machinery Co.,
Ltd., and introduced necessary adjustments on important transactions that occurred before the consolidated
settlement date. From the present reporting period, we have introduced a method to conduct provisional
settlement on the consolidated settlement date of March 31 for these companies and consolidate them.
Due to this change, for the fiscal first quarter, accounts for the six months between January 1, 2019 and June 30,
2019 were consolidated.
Results by segment are as follows.
<Asphalt Plant-Related Business>
Net sales of products increased in Japan from the previous period, but sales of maintenance business decreased
from the previous period. Overseas net sales increased from the previous period, driven by increased exports andpushed up by the introduction in the reporting quarter of the method of provisionally settling accounts of Nikko(Shanghai) Construction Machinery Co., Ltd. on the consolidated account settlement date, as explained above. As
a result, net sales of the business rose 65.9% from the previous period to 3,917 million yen.

<Concrete Plant-Related Business>
Net sales of products in Japan increased significantly from the previous period, but sales of the maintenancebusiness decreased from the previous period. As a result, net sales of the business increased 46.2% from theprevious period to 2,442 million yen.

<Environment- and Conveyor-Related Business>
Sales of conveyer products increased from the previous period, but sales of environmental products decreased
from the previous period. As a result, net sales of this business increased 6.6% from the previous period to 492
million yen.

<Other Business>
Sales of crushers increased from the previous period, but sales of temporary construction materials and hand tools
decreased from the previous period. As a result, net sales of this business increased 24.8% to 1,149 million yen.

– 5 –(2) Explanation About Financial Position
Total assets at the end of the reporting period was 44,099 million yen, increasing 130 million yen from the end of
the last consolidated fiscal year.
Current assets came to 29,678 million yen, increasing 288 million yen from the end of the last consolidated fiscal
year. These increases resulted as cash and cash equivalents, and inventories increased 841 million yen and
1,106 million yen, respectively, and notes and accounts receivable-trade decreased 1,019 million yen andelectronically recorded monetary claims dropped 318 million yen. Non-current assets came to 14,420 million yen,decreasing 158 million yen from the end of the last consolidated fiscal year. This decrease resulted mainly as
property and equipment increased 113 million yen and investment securities decreased 266 million yen.
Liabilities totaled 13,887 million yen, increasing 332 million yen from the end of the last consolidated fiscal year.
The increase was mainly the net result of accounts payable-other increasing 106 million yen, an increase of 937
million yen in the “other” portion of current liabilities, a 131 million yen drop in short-term loans payable, a 205
million yen decrease in income taxes payable, and a 284 million yen decrease in provision for bonuses.
Net assets came to 30,211 million yen, decreasing 202 million yen from the end of the last consolidated fiscal
year. This decrease was mainly the net result of an increase from booking 270 million yen in quarterly net income
attributable to owners of parent and a decrease from paying out dividends totaling 229 million yen.
As a result, equity ratio dropped to 68.5% from 69.2% as of the end of the last fiscal year.
(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results
There is no change in the performance forecast for the year ending March 31, 2020 that was disclosed on May
10, 2019.

– 6 –2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(mil. yen)
As of March 31, 2019
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable-trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process and partly-finished construction
Raw materials and supplies
Consumption taxes receivable
Other business
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other business
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets– 7 –As of June 30, 2019

10,347
10,731
1,628
1,190
3,903
933
209
453
(7)
29,39011,188
9,712
1,310
1,209
4,810
1,114
342
(9)
29,678

6,507
418

6,620
406

5,976
11
6
576
1,234
(152)
7,652
14,57843,969

5,709
11
11
639
1,170
(150)
7,392
14,42044,099(mil. yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Short-term loans payable
Income taxes payable
Accounts payable-other
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other businessTotal current liabilities
Long-term liabilities
Long-term loans payable
Deferred tax liabilities
Provision for directors' retirement benefits
Retirement benefit-related liabilities
Other businessTotal noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Accumulated retirement benefit-related adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets– 8 –As of June 30, 2019

2,270
938
1,532
421
3,022
412
52
35
2,095
10,781

2,279
984
1,400
216
3,129
127
3
26
3,033
11,200

186
98
135
2,010
342
2,773
13,554

178
6
129
2,033
339
2,686
13,887

9,197
7,808
12,049(576)
28,478

9,197
7,808
12,089(576)
28,518

2,010
163
(238)
1,935
30,41443,969

1,830
97
(234)
1,692
30,21144,099(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(For the three Months Ended June 30, 2019)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income/loss
Non-operating income
Interest income
Dividends income
Other businessTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Compensation for damage
Other businessTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Quarterly income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly net income
Quarterly net income attributable to owners of parent

For the three months ended
June 30, 2018(from April 1, 2018 toJune 30, 2018)
5,415
3,798
1,617
1,644
(26)

(mil. yen)
For the three months ended
June 30, 2019(from April 1, 2019 toJune 30, 2019)
8,001
5,838
2,163
1,886
276

0
112
21
134

0
105
17
123

10
3
4
1
20
87

17
14
3
2
37
361

114
114
201
137
(66)
71
130
130

68
68
430
246
(86)
160
270
270

– 9 –

(Consolidated Statements of Comprehensive Income)(For the three Months Ended June 30, 2019)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Retirement benefit-related adjustment
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable to owners of parent– 10 –(mil. yen)
For the three months For the three months
ended June 30, 2018 ended June 30, 2019(from April 1, 2018 to (from April 1, 2019 toJune 30, 2018)
June 30, 2019)
130
270
(95)
(47)
1
(140)
(9)

(179)
(66)
3
(242)
27

(9)

27

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Changes in Accounting Policy)
Not applicable(Additional Information)
Not applicable– 11 –