Financial Results for the First Quarter of Fiscal Year Ending March 31, 2011
March 10, 2011
Company name : NIKKO COMPANY
ID number : 5343 Stock listing : Nagoya Stock Exchange Second Section
URL : http://www.nikko-company.co.jp/
Representative : Makoto Yoshida, Chief Executive Officer
Contact : Shigekazu Kaneda, Board Director and Executive Managing Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report : March 11, 2011

(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Three Months Ended January 31, 2011 (November 1, 2010 - January 31, 2011)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％

Millions of yen

Ordinary income％Millions of yen

Net income％Millions of yen％

Millions of yen

Three months ended
Jan. 31, 2011

4,461

9.0

(238)

-(229)-(257)-

Three months ended
Jan. 31, 2010

4,093

(12.1)(386)-(379)-(391)-Net income pershare

Diluted net income
per share
Yen

Three months ended
Jan. 31, 2011

Yen(13.76)-

Three months ended(20.92)
Jan. 31, 2010
Note: Nikko Company has changed its fiscal year-end from October 31 to March 31.
(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of Jan. 31, 2011

13,625

3,880

28.5

207.11

As of Oct. 31, 2010

13,939

4,143

29.7

221.13

Reference: Shareholders' equity (Millions of yen):Jan. 31, 2011: 3,880

Oct. 31, 2010: 4,143

2. Dividends(Record date)1Q-endDividend per share
3Q-endYen
Yen

2Q-endYear-end

AnnualYen
Yen
Yen
Year ended Oct. 31, 2010
0.00
0.00
0.00
Year ending Mar. 31, 2011
Year ending Mar. 31, 2011
(forecast)
0.00
0.00
Notes: Revision of dividend forecast during the period: None
Nikko Company has changed its fiscal year-end from October 31 to March 31 resulting in an irregular 5-month period for fiscal
2011.
3. Consolidated Forecast for the Fiscal Year Ending March 31, 2011 (November 1, 2010 - March 31, 2011)(Percentage figures represent changes from the same period of the previous year.)
Net income perNet sales
Operating income
Ordinary income
Net income
shareMillions of yen
Full year8,000%

Millions of yen%-(400)-

Millions of yen(400)%-Millions of yen(600)%

Yen-(34.02)

Notes: Revision of projected consolidated performance during the period: None
Due to the change in fiscal year end to March 31, the forecast figures for the full year are for 5-month period from November 1,
2010 to March 1, 2011 and comparisons with the previous year are not provided.

- 1 -4. Other (Please refer to “Other Information” on page 3 of the attached documents for further information)(1) Changes in consolidated subsidiaries during the period: None
Note: Changes in specified subsidiaries affecting the scope of consolidation during the period(2) Application of simplified accounting methods and special accounting methods : Yes
Note: Application of simplified methods and special accounting methods for presenting quarterly consolidated financial statements(3) Changes in accounting principles, procedures, presentation methods
1) Changes caused by revision of accounting standards: Yes
2) Other changes: None
Note: Changes in accounting principles, procedures and presentation methods for presenting quarterly consolidated financial
statements described in “Change in Basis of Preparation of the Quarterly Consolidated Financial Statements”(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Jan. 31, 2011:
19,572,000 shares
Oct. 31, 2010:
19,572,000 shares
2) Number of treasury stock at the end of the period
Jan. 31, 2011:
834,919 shares
Oct. 31, 2010:
833,316 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Three months ended Jan. 31, 2011: 18,737,940 shares
Three months ended Jan. 31, 2010: 18,726,166 shares*Information regarding the implementation of quarterly review procedures
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments andExchange Law. At the time of disclosure, we have completed the review process for these consolidated statements.

*Appropriate use of business forecasts, other special items
Forecasts regarding future results in these materials are based on assumptions judged to be valid and information available to theCompany at the time the materials were created. Actual results may differ significantly from these forecasts for a number of reasons.

- 2 -(Qualitative Information and Financial Statements)
1. Other Information(1) Overview of Changes in Consolidated Subsidiaries
No reportable information(2) Overview of Application of Simplified Accounting Methods and Special Accounting Methods
1) Simplified Accounting Method(Valuation of inventory assets)
The value of a certain inventories at the end of the period under review is calculated using a rational method, based on physicalinventories at the end of the previous fiscal, rather than physical inventories at the end of the period under review.
(Calculation of depreciation expense for fixed assets)
Amount of acquisition, disposal and depreciation of the fixed assets which to be applied to the quarter is calculated by distributing
the amount quoted or budgeted according to the length of the period.
2) Special accounting treatment for preparing quarterly consolidated financial statements
No reportable information(3) Overview of Changes in Accounting Principles, Procedures, Presentation Methods, etc.
Application of accounting standard for asset retirement obligations
Beginning with the first quarter of the current fiscal year, “Accounting Standard for Asset Retirement Obligations” (AccountingStandards Board of Japan (ASBJ) Statement No.18, March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement
Obligations” ASBJ Guidance No.21, March 31, 2008) have been applied.
The effect of this change was to increase operating loss, ordinary loss and net loss before income taxes by 0 million yen, 0 million
yen and 43 million yen, respectively. The application of these standards increased the account balance of asset retirement
obligations by 36 million yen.

- 3 -2. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheet

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 4 -First quarter of FY03/2011(As of Jan.31,2011)(Millions of yen)
FY10/2010 Summary(As of Oct.31,2010)

1,447
2,789
2,154
867
468
350
1122(156)
8,044

1,431
3,338
2,094
849
360
330
1152(269)
8,289

6,753
(4,406)
2,346
1,261
7,585
(6,634)
950
4,558
337

6,726
(4,332)
2,393
1,261
7,524
(6,557)
966
4,621
359

515
559
(390)
684
5,580
13,625

523
432
(285)
670
5,650
13,939

3,514
457
172
18
224
86
1,550
6,023

3,501
446
172
60
203
86
1,590
6,060

1,750
1,393
97
480
3,721
9,744

1,778
1,368
104
484
3,735
9,796

3,200
2,066
(733)
(334)
4,198

3,200
3,045
(1,454)
(334)
4,456

(188)
(129)
(318)
3,880
13,625

(180)
(132)
(313)
4,143
13,939(2) Consolidated quarterly statements of income(For the Three-month Period)(Millions of yen)First quarter of FY10/2010 First quarter of FY03/2011(Nov.1,2009-Jan.31,2010) (Nov.1,2010-Jan.31,2011)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Foreign exchange gains
Rent income
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Loss on valuation of derivatives
OtherTotal non-operating expenses
Ordinary loss
Extraordinary Income
Reversal of allowance for doubtful accounts
Gain on abolishment of retirement benefit plan
Total extraordinary Income
Extraordinary loss
Provision of allowance for loss on valuation ofinvestments of subsidiaries and affiliates
Loss on adjustment for changes of AccountingStandard for asset retirement obligations
Loss on liquidation of subsidiaries and affiliates
Other
Total extraordinary losses
Loss before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Loss before minolity inretests
Net loss

- 5 -

4,093
3,145
948
1,335(386)

4,461
3,231
1,229
1,468(238)

0――292901061229

1250322(379)14――
721(229)―――

1214260――

43―
11(381)
9110―(391)5050(253)
10(5)4(257)(257)

(3) Consolidated Statements of Cash Flows(Millions of yen)First quarter of FY10/2010 First quarter of FY03/2011(Nov.1,2009-Jan.31,2010) (Nov.1,2010-Jan.31,2011)
Net cash provided by (used in) operating activities
Loss before income taxes and minority interests
Depreciation and amortization
Loss on adjustment for changes of Accounting Standard for asset
retirement obligations
Loss on liquidation of subsidiaries and affiliates
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in Provision of allowance for loss on
valuation of investments of subsidiaries and affiliates
Interest and dividends income
Interest expenses
Loss (gain) on valuation of derivatives
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 6 -(381)
140(253)
147―

43―
(1)
(109)
40

5(7)
21
25

0―

(2)
12
2(185)

(2)
14―
550

(1)

(105)

(103)
149(200)
(639)
2(12)
(34)
(683)

(203)
10(86)
159
2(14)
(42)
105(24)24(61)(3)
(65)

(106)
6(6)
(35)
(141)

967
(10)
(9)
(25)
922
(3)
169
1,402
1,571

11(28)
(0)
(31)
(48)
1(83)
1,251
1,167

(4) Going Concern Assumption
No reportable information.

(5) Segment Information(Industry Segment Information)
First Quarter of FY10/2010 (Nov. 1, 2009 - Jan. 31, 2010)
Housing &Environmental
Equipment

Tabletop(Millions of yen, rounded down)
ElectroCeramics

OtherSegment
total

Net sales(1)Sales to Outside
2,303
1,201582
64,093Customers(2)Intersegment sales
or Transfers
Total
2,303
1,201582
64,093Operating income (loss)
(61)
(68)
(90)
(14)
(234)
Note: 1. Major products in each industry segment:
Industry segments are classified based on the similarities of products, markets and so on.
Industry Segment
Major Products
Housing & Environmental
Equipment
Tabletop
Electro-Ceramics

Elimination or Consolidated
corporate
Total
-

4,093

--

(152)

4,093
(386)

FRP bath-tubs, Bathroom units, Septic tanks, Water treatment facilities,Tiles, Wind turbine system
Fine bone china, Fine vitrified china, Fine porcelain, Oven ware
Alumina substrates, LTCC substrates, Dielectric ceramics(Information by Geographic Segment)
Geographical segment information is not presented since domestic sales exceeded 90% of total segment sales.
(Overseas Sales)(Millions of yen, rounded down)
North America

Asia

Other

Consolidated total

Overseas sales
201
216
17436
Consolidated net sales
4,093
Percentage of overseas sales
against consolidated net sales
4.9%
5.3%
0.5%
10.7%
Notes :
1. The countries or areas are classified based on the geographical proximity.
2. Major countries and areas which belong to each classification:
North America : U.S.A., Canada
Asia: Korea, China, Other Asian Countries
3. Overseas sales include the export sales of the company and domestic subsidiaries and the domestic sales of thesubsidiaries abroad.

- 7 -[Segment Information]
1. Overview of reportable segments
Segments used for financial reporting are the Nikko Group’s constituent units for which separate financial information is available and forwhich the Board of Directors performs periodic studies for the purposes of determining the allocation of resources and evaluating
performance.
The Group has established business divisions that comprise of the company and its subsidiaries and affiliates, and each division
conducts business in line with the comprehensive strategies they have devised for products, merchandise and services in both domestic
and overseas markets.
Therefore, the Group consists of segments by products, merchandise and services on the basis of the business divisions, and the“Housing & Environmental equipment”, “Tabletop” and “Electro-Ceramics” are three reportable segments.
Industry Segment
Housing & Environmental
Equipment
Tabletop
Electro-Ceramics

Major Products
FRP bath-tubs, Bathroom units, Septic tanks, Water treatment facilities,Tiles, Wind turbine system
Fine bone china, Fine vitrified china, Fine porcelain, Oven ware
Alumina substrates, LTCC substrates, Dielectric ceramics

2. Information related to net sales and profit or loss for each reportable segment
First Quarter of FY03/2011 (Nov. 1, 2010 - Jan. 31, 2011)
Housing &Environmental
Equipment

Tabletop

ElectroCeramics

OtherSegment
total(Millions of yen, rounded down)Amounts
shown onAdjustment
quarterly(Note 1)
consolidated
statements ofincome

Net sales(1)Sales to Outside
2,456
1,346649
94,461
4,461
Customers(2)Intersegment salesor Transfers
Total
2,456
1,346
649
9
4,461
4,461
Segment profit (loss)(Operating income (loss))
(11)
(38)
(20)
(13)
(84)
(153)
(238)
Notes: 1. The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Segment income adjustment of 153 million yen consists of expenses, such as general administrative expenses, andresearch and development costs that do not belong to the reportable segments.

(6) Significant changes in Shareholder’s Equity
Not applicable.

- 8 -(Supplementary Information)
Sales by SegmentIndustry Segment(Millions of yen, rounded down)First Quarter of FY10/2010(Nov. 1, 2009 - Jan. 31, 2010)

First Quarter of FY03/2011(Nov. 1, 2010 - Jan. 31, 2011)

FY10/2010(Nov. 1, 2009 - Oct. 31, 2010)

Net Sales

Percent of
Net Sales

Net Sales

Percent of
Net Sales

Net Sales

Housing & Environmental
Equipment

2, 30356.3%

2, 456

55.1%

9,780

54.5%

Tabletop

1,201

29.4

1,346

30.2

5,482

30.5

Electro- Ceramics

582

14.2

649

14.5

2,656

14.8

Other

60.1

90.2

420.2

Total

4,093

100.0

4,461

100.017,961

100.0

Percent ofNet Sales

Notes:
1. Amounts are converted to sales prices.
2. Amounts do not include consumption taxes.
3. The following table indicates the Company’s Overseas sales share by industry segment and percentage figures represent
Overseas sales ratio.
(Millions of yen, rounded down)First Quarter of FY10/2010(Nov. 1, 2009 - Jan. 31, 2010)

First Quarter of FY03/2011(Nov. 1, 2010 - Jan. 31, 2011)

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

Housing & Environmental
Equipment--%--%

2

Tabletop

325

27.1

445

33.1

1,51327.6

Electro- Ceramics

110

18.9

163

25.1

667

25.1

Total

436

10.7

608

13.6

2,184

12.2

Industry Segment- 9 -Overseas Sales
Ratio

FY10/2010(Nov. 1, 2009 - Oct. 31, 2010)
OverseasSales

Overseas Sales
Ratio
0.0%