Consolidated Financial Results
for the Fiscal Year Ended March 31, 2016
[Japanese GAAP]May 13, 2016
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: http://www.nipponhume.co.jp
Representative: Minoru Okawauchi, President and Representative Director
Contact: Takamasa Ishii, Executive Officer and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of Annual General Meeting of Shareholders: June 29, 2016
Scheduled date of commencing dividend payments: June 30, 2016
Scheduled date of filing annual securities report: June 29, 2016
Preparation of supplementary briefing material on financial results: No
Holding of financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 to March 31, 2016)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toTurnoverOperating income
Ordinary income
owners of parent
company
Million yen%

Million yen%

Million yen%

Fiscal year ended
33,7501,894 (12.0)
2,326 (44.3)(6.3)
March 31, 2016
Fiscal year ended
36,018
1.0
2,152
1.0
4,176
45.2
March 31, 2015
(Note) Comprehensive income: Fiscal year ended March 31, 2016: ¥881 million [(72.4)%]
Fiscal year ended March 31, 2015: ¥3,190 million [77.0%]
Earnings per
share

Diluted earnings
per share

Yen

Fiscal year ended
69.89
March 31, 2016
Fiscal year ended
136.70March 31, 2015
(Reference) Share of income (loss) of associates:(2) Consolidated Financial Position
Total assets
Million yen

Million yen

%

1,802

(49.7)

3,585

88.3

Ordinary
incometo total assets

Return on
equityOperatingincome toturnover

Yen

%

%

%

―

6.5

5.2

5.6

―

13.5

9.4

6.0

Fiscal year ended March 31, 2016: ¥431 million
Fiscal year ended March 31, 2015: ¥1,584 million
Net assets
Million yen

As of March 31,
43,85728,0732016
As of March 31,
46,00728,0472015(Reference) Equity: As of March 31, 2016: ¥27,884 million
As of March 31, 2015: ¥27,871 million

Equity ratio

Net assets per share
%

Yen

63.6

1,095.70

60.6

1,069.94

(3) Consolidated Cash FlowsNet cash provided by Net cash provided by Net cash provided by(used in) operating(used in) investing(used in) financing
activities
activities
activities
Fiscal year ended
March 31, 2016
Fiscal year ended
March 31, 2015

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

2,568

(628)

(1,148)

8,287

2,317

(3,586)

(445)

7,496

2. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2015
Fiscal year ended
March 31, 2016
Fiscal year ending
March 31, 2017
(Forecast)Total
dividends

Total

Yen

Yen

Yen

Yen

―

―

―

15.00

15.00

―

―

―

16.00

16.00

―

―

―

16.00

16.00

Payoutratio(consolidated)

Yen Million yen

Dividends
to netassets(consolidated)

%

%

402

11.0

1.5

419

22.9

1.5

20.4

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 to March 31,
2017)(% indicates changes from the previous corresponding period.)
Profit attributable
Earnings
TurnoverOperating income Ordinary income
to owners ofper share
parent company
First half
Full year

Million yen%

Million yen%

17,00040,000

0.7
18.5

800
2,300

(24.3)
21.4

Million yen%

Million yen%

Yen

1,200 (21.8)
2,700 16.1

800
2,000

(29.6)
11.0

31.44
78.59

* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No
Newly included: ― (Company name)
Excluded: ― (Company name)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards, etc.: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(Note) For details, please refer to “5. Consolidated Financial Statements (5) Notes to the Consolidated
Financial Statements (Changes in accounting policies)” on page 21 of the attachment.
(3) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2016: 29,347,500 shares
As of March 31, 2015: 29,347,500 shares

2) Total number of treasury shares at the end of the period
As of March 31, 2016: 3,898,940 shares
As of March 31, 2015: 3,298,111 shares
3) Average number of shares during the period
Fiscal year ended March 31, 2016: 25,783,634 sharesFiscal year ended March 31, 2015: 26,231,787 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 to March 31, 2016)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
TurnoverOperating income
Ordinary income
Net income
Fiscal year ended
March 31, 2016
Fiscal year ended
March 31, 2015

Fiscal year ended
March 31, 2016
Fiscal year ended
March 31, 2015

Million yen%

Million yen%

Million yen%

Million yen%

31,743

(2.0)

1,837

7.2

2,343

4.9

1,802

3.4

32,384

0.8

1,714

(1.4)

2,233

10.8

1,743

56.0

Earnings per share

Diluted earnings per
share

Yen

Yen

67.84

―

64.98

―

(2) Non-consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of March 31,
36,10321,9292016
As of March 31,
38,00921,571
2015(Reference) Equity: As of March 31, 2016: ¥21,929 million
As of March 31, 2015: ¥21,571 million

Equity ratio

Net assets per share
%

Yen

60.7

835.7756.8

803.70* Presentation regarding the implementation status of the audit procedures
These financial results are outside the scope of audit procedures under the Financial Instruments and ExchangeAct. At the time of disclosure of these financial results, audit procedures for the financial statements under the
Financial Instruments and Exchange Act have not been completed.
* Explanation of the proper use of financial results forecast and other notes
The financial results forecast and other forward-looking statements contained in these materials are based on
information available to the Company and on certain assumptions deemed to be reasonable as of the date of
publication of this document. They are not intended as a commitment by the Company that these results will beachieved. Actual results may differ considerably as a result of numerous factors. For the assumptions used in thefinancial results forecast and precautionary notes on its use, please refer to “1. Analysis of Operating Results andFinancial Position (1) Analysis of Operating Results” on page 3 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Table of Contents
1. Analysis of Operating Results and Financial Position .................................................................................... 2(1) Analysis of Operating Results .................................................................................................................... 2(2) Analysis of Financial Position .................................................................................................................... 4(3) Dividend Policy and Payments for the Fiscal Year under Review and Next Fiscal Year ........................... 5(4) Business and Other Risks ........................................................................................................................... 5
2. Corporate Group ............................................................................................................................................. 6
3. Management Policies ...................................................................................................................................... 8(1) Basic Management Policies of the Company ............................................................................................. 8(2) Target Management Indicators ................................................................................................................... 8(3) Medium- to Long-term Management Strategy of the Company and Issues to Deal with .......................... 8
4. Basic Approach Concerning Selection of Accounting Standards ................................................................... 9
5. Consolidated Financial Statements ............................................................................................................... 10(1) Consolidated Balance Sheets ................................................................................................................... 10(2) Consolidated Statements of Income and Comprehensive Income ........................................................... 12
Consolidated Statements of Income ......................................................................................................... 12
Consolidated Statements of Comprehensive Income ............................................................................... 13(3) Consolidated Statements of Changes in Net Assets ................................................................................. 14(4) Consolidated Statements of Cash Flows .................................................................................................. 16(5) Notes to the Consolidated Financial Statements ...................................................................................... 18(Notes on going concern assumption) ...................................................................................................... 18(Basic significant matters for the preparation of consolidated financial statements) ............................... 18(Changes in accounting policies) ............................................................................................................. 21(Segment information) ............................................................................................................................. 23(Per share information) ............................................................................................................................ 26(Significant subsequent events) ................................................................................................................ 26
6. Non-consolidated Financial Statements ....................................................................................................... 27(1) Non-consolidated Balance Sheets ............................................................................................................ 27(2) Non-consolidated Statements of Income .................................................................................................. 29(3) Non-consolidated Statements of Changes in Net Assets .......................................................................... 30
7. Other ............................................................................................................................................................. 32(1) Changes in Directors and Audit & Supervisory Board Members ............................................................ 32

1

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results(Operating results for the fiscal year under review)
The Japanese economy continued on a moderate recovery track during the fiscal year ended March 31, 2016,
amid an improving trend in employment and other areas. The outlook remained uncertain, however, due to risk
factors including a downswing in China and other emerging nations.
Under these circumstances, the Group is working diligently toward stable profits and sustainable growth inline with the basic policy of the medium-term management plan, “Evolution All Japan,” that covers the three
years from fiscal 2015.
In the concrete products industry where the Company operates, demand for both Hume pipes and pile
products weakened compared to the previous fiscal year.
Orders received for products and construction, etc. for the fiscal year ended March 31, 2016, were ¥31,523
million (a year-on-year decline of 7.4%). Turnover including revenue from products, construction and realestate amounted to ¥33,750 million (down 6.3% year on year).
Looking at profit and loss, operating income was ¥1,894 million (a year-on-year decline of 12.0%).
Ordinary income was ¥2,326 million (a year-on-year drop of 44.3%), due to a decrease in share of income ofassociates as a result of posting “negative goodwill” of ¥1,085 million arising from acquisitions of shares in theprevious fiscal year. Profit attributable to owners of parent company was ¥1,802 million (a year-on-year
decrease of 49.7%).
Segment results are indicated as follows.
1) Concrete Products
Orders received were ¥18,613 million (down 13.9% year on year). Turnover was ¥19,957 million (down
11.3% year on year), mainly due to a decline in precast products that offset an increase in sales of mainstay
Hume pipes and pile products. Segment income was ¥153 million (down 81.8% year on year), mainly due to adecrease in highly profitable precast products.
The total sales composition ratio was 59.1%.
2) Construction
Orders received were ¥12,713 million (up 4.1% year on year) and turnover was ¥12,213 million (up 1.5%
year on year). Segment income amounted to ¥1,148 million (rising 36.0% year on year), mainly due to anincrease in highly profitable construction.
The total sales composition ratio was 36.2%.
3) Real Estate Development
Turnover was ¥975 million (down 4.5% year on year), due to a decrease in rental real estate income.
However, segment income amounted to ¥422 million (rising 8.7% year on year), due mainly to reduced selling,
general and administrative expenses.
The total sales composition ratio was 2.9%.
4) Others
Orders received were ¥196 million (down 10.4% year on year) and turnover was ¥604 million (rising 27.9%
year on year), reflecting the contribution of the solar power generation business. Segment income amounted to¥169 million (up 121.2% year on year).
The total sales composition ratio was 1.8%.

2

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Outlook)
Challenging conditions are expected to persist in the business environment surrounding the Company as we
continue to face fierce competition on orders and prices, among other factors. However, we believe that ourconcrete precast products and construction technologies enable us to offer optimal solutions to problems in thedomestic construction market, such as labor shortages, as well as for the creation of a safe and secure social
infrastructure. We will actively tackle these issues in line with the basic strategy set out in our medium-term
management plan, “Evolution All Japan.”With regard to financial results for the fiscal year ending March 31, 2017, the Company is expecting
turnover of ¥40.0 billion (a year-on-year increase of 18.5%), operating income of ¥2.3 billion (up 21.4% year
on year), ordinary income of ¥2.7 billion (rising 16.1% year on year), and profit attributable to owners of parent
company of ¥2.0 billion (a year-on-year increase of 11.0%). This outlook is based on the results of entering
new businesses (segment businesses) where future growth is anticipated.

3

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(2) Analysis of Financial Position
1) Assets, Liabilities and Net Assets
Total assets as of March 31, 2016, fell by ¥2,150 million from the end of the previous fiscal year to ¥43,857
million. Current assets fell by ¥1,285 million from the end of the previous fiscal year to ¥22,550 million. Thiswas due to factors including a decrease of ¥1,178 million in notes and accounts receivable - trade. Non-current
assets declined by ¥865 million from the end of the previous fiscal year to ¥21,307 million. This was due tofactors including a decrease of ¥851 million in investment securities.
In addition, liabilities declined ¥2,177 million from the end of the previous fiscal year to ¥15,783 million.
Current liabilities decreased by ¥2,203 million from the end of the previous fiscal year to ¥12,193 million. Thiswas due to factors including declines of ¥1,414 million in notes and accounts payable - trade and ¥408 million
in short-term loans. Non-current liabilities grew by ¥26 million from the end of the previous fiscal year to¥3,590 million.
Under net assets, shareholders’ equity grew by ¥947 million, due to an increase of ¥1,354 million in retained
earnings, offsetting the impact of acquiring treasury shares of ¥404 million, among other factors. Accumulated
other comprehensive income also decreased by ¥934 million, due to declines of ¥698 million in valuationdifference on available-for-sale securities and ¥297 million in remeasurements of defined benefit, despite anincrease of ¥62 million in difference in foreign exchange. As a result of these factors, net assets increased by¥26 million from the end of the previous fiscal year to ¥28,073 million.
2) Cash Flows
Cash and cash equivalents (hereinafter, “funds,” referring to cash and deposits minus time deposits withdeposit terms of over three months) as of March 31, 2016, grew ¥791 million from the end of the previous
fiscal year to ¥8,287 million.
Funds provided by operating activities during the fiscal year ended March 31, 2016, increased by ¥251
million year on year to ¥2,568 million. The primarily factors were an increase in funds due to ¥2,308 million in
profit before income taxes and minority interests and ¥1,156 million in decrease (increase) in notes andaccounts receivable - trade. These offset a decline in funds mainly due to ¥1,414 million in increase (decrease)in notes and accounts payable - trade.
Funds used in investing activities during the fiscal year ended March 31, 2016, declined by ¥2,958 million
year on year to ¥628 million. The primarily factors included a ¥717 million outflow due to purchase of fixed
assets.
Funds used in financing activities during the fiscal year ended March 31, 2016, grew by ¥703 million year
on year to ¥1,148 million. The primarily factors included an outflow of ¥404 million due to purchase oftreasury shares, ¥402 million in cash dividend payments and net increase (decrease) in short-term loans of ¥339
million.
(Reference) Cash flow indicators
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
ended March 31, ended March 31, ended March 31, ended March 31, ended March 31,
2012
2013
2014
2015
2016
Equity ratio
60.1%
59.4%
59.2%
60.6%
63.6%
Equity ratio based on
26.9%
38.7%
52.1%
47.8%
33.8%
fair value
Interest-bearing debt to
6.6 years
0.8 years
0.5 years
0.7 years
0.5 years
cash flow ratio
Interest coverage ratio
7.5 times
50.3 times
88.9 times
59.5 times
83.8 times
Equity ratio:
Shareholders’ equity / Total assets
Equity ratio based on fair value:
Total market value of shares / Total assets
Interest-bearing debt to cash flow ratio: Interest bearing liabilities / Cash flows
Interest coverage ratio:
Cash flows / Interest paid
4

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Notes)1. The indicators were calculated using consolidated financial figures.
2. Total market value of shares is calculated based on the total number of issued shares, excluding
treasury shares.
3. Operating cash flows are used for cash flows.
4. Interest-bearing debts include all debts recorded on the Consolidated Balance Sheets for whichinterest is paid.

(3) Dividend Policy and Payments for the Fiscal Year under Review and Next Fiscal Year
The Company considers distribution of profits to shareholders as an important management task. Our basic
policy is to maintain a stable dividend level. In the meantime, we strive to enhance overall return toshareholders by implementing purchases of treasury shares and other measures, taking into account factors suchas maintaining a sound financial structure, enhancing internal reserves to prepare for business development, as
well as performance.
Funds retained as internal reserves will be used as a portion of the funds invested in development of new
products and new technologies and for capital investment in efficiency enhancement and reduction of power
consumption. The efficiency of the investments is considered from a long-term perspective.
Under this basic policy, the Company is scheduled to increase the year-end dividend by ¥1 to ¥16 per share.
The Company has secured an increase in non-consolidated financial results for the fiscal year under review,despite the impact on consolidated financial results for the fiscal year under review of “negative goodwill”
arising from the acquisition of shares and foreign exchange gains in the previous fiscal year.
For the next fiscal year, the Company plans to pay dividends of ¥16 per share.
(4) Business and Other Risks
1) Price Competition
The Great East Japan Earthquake has created expectations of reconstruction demand and increased spending
on public works. Even so, conditions are expected to remain severe in the business environment surrounding
the Group due to fierce price competition. This could have an effect on its financial results and financial
position.
2) Changes in Laws and Regulations and Other Systems
The Group is subject to regulations by the Construction Business Act, the Building Lots and Buildings
Transaction Business Act and related laws and regulations in the operation of its business. The Group conducts
its business operations in accordance with these related laws and regulations, and there are no legal regulations
that pose a major hindrance to our business operations at this point. However, our future business strategies
could be affected in the event these regulations are tightened.
3) Overseas Business Activities
The Group’s overseas subsidiaries and associates engage in business activities mainly in emerging nationsin Asia. Therefore, there are inherent risks of unforeseen drastic changes in the political situation or changes inlegal systems, in addition to geopolitical risks.

5

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

2. Corporate GroupThe Group, which comprises the Company, 11 consolidated subsidiaries, 6 associated companies accounted
for by the equity method and 1 associated company not accounted for by the equity method, is mainly engaged
in businesses related to concrete products, construction and real estate development.
The position of these companies in relation to the Group’s business and business segments are as follows.
The categories indicated below are the same as the Group’s business segments.
Engaged in manufacturing and sales of concrete products, manufacturingof formwork, sales of accessories, etc.
[Main subsidiaries and associates]
TOHO HUME PIPE CO., LTD., NH FUTABA CO., LTD., GYKOAKEBONO CO., LTD., TOKYO CONCRETE INDUSTRY CO., LTD.,
YAMATO CONCRETE CO., LTD., ASAHI CONCRETE WORKS CO.,LTD.
Engaged in various contracted construction[Main subsidiaries and associates]
NIPPON HUME ENGINEERING CO., LTD.
Engaged in leasing, management and development of real estate[Main subsidiaries and associates]
HUMES CO., LTD.
Engaged in sales of environment-related equipment, operation of sports
facilities, rental business, solar power generation business, etc.
[Main subsidiaries and associates]
NH FUTABA CO., LTD., ENVIRONMENT IMPROVEMENTPLANNING CO., LTD.

(Concrete Products)
Manufacturing and sales ofconcrete products(Construction)
Various contracted construction(Real Estate Development)
Leasing, management anddevelopment of real estate(Others)

The following chart outlines the business structure.

(Concrete Products)*1

TOHO HUME PIPE CO., LTD.
Raw materials

TOKYO CONCRETE INDUSTRY
CO., LTD.

(Domestic Customers)

GYKO AKEBONO CO., LTD.

NH FUTABA CO., LTD.

Products

Raw materials

Products
Manufacturing of formwork and sales of accessories*1
ASAHI CONCRETE WORKS CO., LTD.

Products(Construction)
NIPPON HUME ENGINEERING CO., LTD.

Various types of construction work

(Real Estate Development)
HUMES CO., LTD.

Real estate management

The Company*1
YAMATO CONCRETE CO., LTD.

(Others)
NH FUTABA CO., LTD.

Operation and outsourcing for sports facilities*1(Overseas Customers)

ENVIRONMENT IMPROVEMENTPLANNING CO., LTD.

NJS CO., LTD.
NX CO., LTD.

Products(Concrete Products, Construction, Others)
NIPPON HUME INTERNATIONAL LTD.

NHC PILING CO., LTD. (*1)

NIPPON HUME CONCRETE (THAILAND) CO., LTD.

HUMEX (THAILAND) LIMITED

P. T. HUME CONCRETE INDONESIA

ASIA CONSTRUCTION MATERIALS LIMITED6

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Note) Companies with no mark are consolidated subsidiaries. Companies marked with *1 are associatedcompanies accounted for by the equity method.
(Note) NIPPON HUME CONCRETE (HONG KONG) LTD. was excluded from the scope of consolidated
subsidiaries due to the transfer of all shares as of December 31, 2015.

7

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

3. Management Policies(1) Basic Management Policies of the Company
The Company conducts its business activities based on the management policies of “Developing andstrengthening our core business,” “Expanding new businesses” and “Revitalizing management,” under the
corporate philosophy of “Taking part in the establishment of social infrastructure and contributing to thecreation of a prosperous human environment,” “Working for harmony among people, and always seeking
happiness and motivation for our employees” and “Aiming to be a strong company through unceasing
technological development with our eyes firmly fixed on the future.”(2) Target Management Indicators
Under the medium-term management plan, “Evolution All Japan,” which started in the 133rd term (thefiscal year ended March 31, 2015), the NIPPON HUME Group has set out its basic strategies: “Strategy for theGroup’s growth,” “Strategy to improve competitiveness” and “Strategy to enhance the management foundation.”
The entire Group will put all its efforts into these strategies.
We will engage in management to enhance corporate value by working to improve our profitability andfinancial structure, setting return on equity (ROE) as management’s target indicator.
(3) Medium- to Long-term Management Strategy of the Company and Issues to Deal with
The Company will dedicate the full strength of the entire Group to the medium-term management plan,“Evolution All Japan,” which started in the 133rd term (the fiscal year ended March 31, 2015).
We have set out the following basic policies and three basic strategies under the medium-term management
plan, “Evolution All Japan,” in order to build further on the previous medium-term management plan, “AllJapan-90.” We will work to enhance corporate value leading up to the 100th anniversary of the Company’s
founding.
1. Basic Policies
The NIPPON HUME Group strives to develop technology and enhance quality as a general manufacturer ofconcrete secondary products, in order to “take part in the establishment of safe and secure social infrastructure
and contribute to the creation of a prosperous human environment,” as stated in our corporate philosophy. We
also work as a civil engineering and construction company to develop construction methods and enhanceconstruction quality for those products. In these ways, we seek to gain the trust of society and customers whilepursuing stable profits and sustainable growth.
2. Basic Strategies
Challenging conditions are expected to persist in the business environment surrounding the Company as we
continue to face fierce competition on orders and prices, among other factors. However, we believe that ourconcrete precast products and construction technologies enable us to offer optimal solutions to problems in thedomestic construction market such as labor shortages and to create a safe and secure social infrastructure. We
will actively tackle these issues in line with the basic strategies set out below.
(i) Strategy for the Group’s Growth
The NIPPON HUME Group has cultivated product development of concrete secondary products anddevelopment of construction methods over the course of 90 years. We will evolve these strengths further as weapproach the 100th anniversary of the Company’s founding. We will pursue sustainable growth by addressing
the issues faced by society and customers, based on the strategies of 1) expansion of business domains (pursuitof scale), 2) differentiation through marketing, 3) differentiation through development of core technologies, and
4) development and cultivation of environmental and energy businesses as revenue sources for the future.
(ii) Strategy to Improve Competitiveness
The NIPPON HUME Group will continue to create a low-cost structure that can realize prices that are more
8

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

competitive than other companies and can ensure stable profits, with the aim of improving our competitivenessin terms of the trust of society and customers. To that end, we will continue to intensify the following
strategies: 1) strengthening the procurement system, 2) enhancing efficiency of production and construction
systems, 3) reducing costs through development of production technologies and construction technologies, 4)
reducing costs in back-office divisions through organizational reform and operational reform, and 5) improving
white collar productivity.
(iii) Strategy to Improve Management Foundation
Stable profit and sustainable growth can only be achieved by earning the trust of society through actions
such as providing safe, high-quality and high-added-value products and technology and addressing
environmental issues. Bearing that in mind, the NIPPON HUME Group will work to strengthen governanceduring this three-year period with a view to the next decade that will mark the 100th anniversary of theCompany’s founding. To that end, we will build on the following strategies: 1) establishing and reinforcing therisk management system, 2) bolstering the personnel system and the human resources development base(strengthening on-site capabilities), 3) reinforcing the management foundation of overseas businesses, 4)
reinforcing the management foundation of subsidiaries and associates in Japan, 5) strengthening the business
management foundation through visualization, and 6) enhancing cash flow management.

4. Basic Approach Concerning Selection of Accounting Standards
The Group’s policy is to prepare its consolidated financial statements based on Japanese-GAAP for the time
being, considering comparability with other companies in the same industry in Japan.
Our policy for the future is to review the application of International Accounting Standards in light offactors including application trends by companies Japan.

9

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Deferred tax assets
Other
Provision for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term accounts receivable - other
Deferred tax assets
Other
Provision for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10

As of March 31, 2016

7,549,232
12,986,787
2,156,208
617,688
108,415434,905(17,523)
23,835,714

8,343,375
11,807,820
1,579,806
411,776
76,552
344,707(13,903)
22,550,135

11,568,257(8,378,277)
3,189,979
14,265,580(12,187,926)
2,077,653
3,712,154
180,490
654,546(615,192)
39,353
9,199,631

11,678,504(8,579,721)
3,098,782
14,411,651(12,418,260)
1,993,390
3,697,405
302,748
678,964(611,701)
67,262
9,159,590

103,366
103,366

141,008
141,008

12,610,997
290,493
7,551
288,274(328,131)
12,869,185
22,172,183
46,007,898

11,759,521
243,134
6,406
277,642(280,165)
12,006,540
21,307,138
43,857,273

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Thousand yen)
As of March 31, 2015
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans
Income taxes payable
Provision for bonuses
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Long-term lease and guarantee deposited
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Share premium
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

11

As of March 31, 2016

11,027,434
1,622,812
441,781
192,283―
1,112,419
14,396,732

9,612,889
1,214,430
181,150
187,230
1,334
996,282
12,193,318

820,182
50,767
22,9182,044,534
616,970
8,771
3,564,146
17,960,878

363,487
36,017
21,584
2,547,786
620,236
1,098
3,590,210
15,783,528

5,251,400
4,739,426
17,955,480(912,998)
27,033,308

5,251,400
4,736,508
19,309,786(1,317,293)
27,980,401

940,031
15,434(117,392)
838,073
175,637
28,047,019
46,007,898

241,061
77,730(415,129)(96,337)
189,681
28,073,745
43,857,273

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year ended
March 31, 2015
TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of associates
Technical support fee
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
State subsidy
Insurance income
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Structural reform expenses
Loss on sales of golf club memberships
Other
Total extraordinary losses
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent company

12

For the fiscal year ended
March 31, 2016

36,018,511
29,807,733
6,210,777
4,058,734
2,152,042

33,750,621
27,950,357
5,800,264
3,906,184
1,894,080

1,399
92,915
1,584,204
83,620265,866
116,253
2,144,260

971
82,445431,027
81,047―85,427680,920

38,964―80,848
119,813
4,176,489

30,642
181,234
36,952
248,829
2,326,170

1,288―
128,110
129,398

5,381
66,179―71,56050,644―8,539
059,1844,246,703
740,165(94,502)645,662
3,601,040
15,231
3,585,808

2,680
86,224――88,9042,308,826
509,322(16,624)492,698
1,816,128
14,044
1,802,083

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year ended
March 31, 2015
Profit after income taxes
Other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Share of other comprehensive income of associates
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
company
Comprehensive income attributable to non-controllinginterests

13

For the fiscal year ended
March 31, 2016

3,601,040

1,816,128(154,446)(293,738)
12,21625,775(410,192)
3,190,847(637,178)
62,297(267,879)(91,650)(934,411)
881,7173,175,615

867,672

15,231

14,044

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2015
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Share premium

Retained earnings

Treasury shares

Total shareholders’ equity

5,251,400

4,749,738

14,691,769(718,938)

23,973,970

5,251,400

4,749,738

14,691,769(718,938)

23,973,970

Changes of items during period
Dividends of surplus(322,097)(322,097)

Profit attributable to owners ofparent company

3,585,808

3,585,808

Purchase of treasury shares
Disposal of treasury shares

111

Increase of treasury shares ofassociate company
Purchase of shares of
consolidated subsidiaries
Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period(1,663)(1,663)61

172(192,458)(192,458)(10,423)5,251,400(10,423)(10,312)3,263,710(194,060)

3,059,337

4,739,426

17,955,480(912,998)

27,033,308

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Valuationdifference on
available-for-salesecurities

Difference inforeign exchange

Remeasurementsof defined benefit

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

1,091,585

309,171(152,491)

1,248,266

160,405

25,382,642

1,091,585

309,171(152,491)

1,248,266

160,405

25,382,642

Changes of items during period
Dividends of surplus(322,097)

Profit attributable to owners ofparent company

3,585,808

Purchase of treasury shares(1,663)

Disposal of treasury shares

172

Increase of treasury shares ofassociate company(192,458)

Purchase of shares of
consolidated subsidiaries(10,423)

Other changes of shareholders’equity(151,554)(293,737)

35,098(410,192)

15,231(394,961)

Total changes during current
period(151,554)(293,737)

35,098(410,192)

15,2312,664,376

Balance at end of current period

940,031

15,434(117,392)

838,073

175,637

28,047,019

14

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

For the fiscal year ended March 31, 2016
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Share premium

5,251,400

Retained earnings

4,739,426

Treasury shares

17,955,480

Total shareholders’ equity(912,998)(45,184)
5,251,400

4,739,426

27,033,308(45,184)

17,910,296(912,998)

26,988,124

Changes of items during period
Dividends of surplus(402,594)(402,594)

Profit attributable to owners ofparent company

1,802,083

1,802,083

Purchase of treasury shares
Disposal of treasury shares

52

Increase of treasury shares ofassociate company
Purchase of shares of
consolidated subsidiaries
Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period(404,318)(404,318)

23

75

(0)

(0)

(2,969)5,251,400(2,969)(2,917)

1,399,489(404,295)

992,276

4,736,508

19,309,786(1,317,293)

27,980,401

Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Valuationdifference on
available-for-salesecurities

Difference inforeign exchange

Remeasurementsof defined benefit

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

940,031

15,434(117,392)

838,073

175,637

28,047,019(45,184)

940,031

15,434(117,392)

838,073

175,637

28,001,835

Changes of items during period
Dividends of surplus(402,594)

Profit attributable to owners ofparent company

1,802,083

Purchase of treasury shares(404,318)

Disposal of treasury shares

75

Increase of treasury shares ofassociate company(0)

Purchase of shares of
consolidated subsidiaries(2,969)Other changes of shareholders’equity(698,969)

62,295(297,737)(934,411)

14,044(920,366)

Total changes during current
period(698,969)

62,295(297,737)(934,411)

14,044

71,910

Balance at end of current period

241,061

77,730(415,129)(96,337)

189,681

28,073,745

15

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year ended
March 31, 2015
Cash flows from operating activities
Profit before income taxes and minority interests
Depreciation
Increase (decrease) in provision for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (income) loss of associates
Loss (gain) on sales of fixed assets
Loss on disposal of fixed assets
State subsidy
Loss (gain) on sales of golf club memberships
Insurance income
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Decrease (increase) in other current assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other current liabilities
Increase (decrease) in other non-current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating activities

16

For the fiscal year ended
March 31, 2016

4,246,703
572,913(49,281)
21,83790,901

2,308,826
699,884(51,589)(5,052)
168,413(6,930)(14,750)(94,315)
38,964(204,903)(1,584,204)(1,288)50,644―
8,539(128,110)(83,417)30,642
12,736(431,027)(5,381)
2,680(66,179)――(1,008,716)

1,156,940(609,971)
428,265

750,408
68,511

1,436,951(1,414,112)(65,523)(329,340)(22,342)(1,498)2,789,294
236,315(39,340)
140,694(809,512)
2,317,451

273,210(314,300)(3,590)―3,082,854
286,247(31,277)―(768,981)
2,568,843

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Thousand yen)
For the fiscal year ended
March 31, 2015
Cash flows from investing activities
Payments into time deposits
Purchase of fixed assets
Proceeds from sales of fixed assets
Payments for disposal of fixed assets
Proceeds from state subsidy
Purchase of shares of associated companies
Proceeds from sales of golf club memberships
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans
Purchase of treasury shares
Proceeds from sales of treasury shares
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Cash dividends paid
Net cash provided by (used in) financing activities
Net foreign exchange on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

17

For the fiscal year ended
March 31, 2016

(327)
(2,108,365)
3,302(101,561)―(1,397,680)
3,060
14,659(3,586,911)(2,923)(717,719)
6,154(37,726)
66,179――58,000(628,036)(122,140)(1,663)
172(339,323)(404,318)75―(2,969)(321,991)(445,622)(5,875)(1,720,957)
9,217,329
7,496,372(402,412)(1,148,948)(639)
791,219
7,496,372
8,287,591

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)
No relevant items.
(Basic significant matters for the preparation of consolidated financial statements)
1. Scope of consolidation(i) Number of consolidated subsidiaries: 11
Name of principal consolidated subsidiaries
TOHO HUME PIPE CO., LTD.
GYKO AKEBONO CO., LTD.
NH FUTABA CO., LTD.
NIPPON HUME ENGINEERING CO., LTD.
HUMES CO., LTD.
ENVIRONMENT IMPROVEMENT PLANNING CO., LTD.
NIPPON HUME INTERNATIONAL LTD.
NIPPON HUME CONCRETE (THAILAND) CO., LTD.
P. T. HUME CONCRETE INDONESIA
ASIA CONSTRUCTION MATERIALS LIMITEDHUMEX (THAILAND) LIMITEDNIPPON HUME CONCRETE (HONG KONG) LTD. was excluded from the scope of consolidated
subsidiaries due to the transfer of all shares as of December 31, 2015.
(ii) Name of non-consolidated subsidiaries
No relevant items.
2. Matters concerning the application of the equity method(i) Non-consolidated subsidiaries accounted for by the equity method
No relevant items.
(ii) Number of associated companies accounted for by the equity method: 6
Name of principal companies, etc.
YAMATO CONCRETE CO., LTD.
NJS CO., LTD.
NX CO., LTD.
TOKYO CONCRETE INDUSTRY CO., LTD.
ASAHI CONCRETE WORKS CO., LTD.
NHC PILING CO., LTD.
(iii) Non-consolidated subsidiaries and associated companies not accounted for by the equity method
Associated company
18

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Taiwan Lisa Engineering Corporation has been excluded from the scope of application of the equity method
due to the immateriality of its impact on the Company’s profit or loss and retained earnings.
(iv) Matters concerning the procedures for the application of the equity method deemed to require special remarks
With respect to the companies accounted for by the equity method but with different closing dates, theirfinancial statements based on their respective fiscal years are used.
3. Matters concerning the fiscal years of consolidated subsidiaries
The closing date of the following consolidated subsidiaries is December 31.
NIPPON HUME INTERNATIONAL LTD.
NIPPON HUME CONCRETE (THAILAND) CO., LTD.
P. T. HUME CONCRETE INDONESIA
ASIA CONSTRUCTION MATERIALS LIMITEDHUMEX (THAILAND) LIMITED
Financial statements as of December 31 are used in the preparation of consolidated financial statements,
while adjustments are made as appropriate for the purpose of consolidation for significant transactions
occurring between the respective closing date and the consolidated closing date.
4. Matters concerning the accounting policies(i) Valuation standards and methods for significant assets
1) Valuation standards and methods of securities
Available-for-sale securities
Fair market values available
Stated at fair market value based on the market value, etc. on the closing date (The valuation differenceis accounted for as a separate component of net assets, and cost of sales is calculated primarily by thegross average method.)
Fair market values not available
Stated at cost based on the gross average method
2) Receivables and payables generated from derivative transactions
Stated at fair value
3) Valuation standards and methods of inventories
Inventories held for regular sales purpose
Valuation standards are based on the cost method (by writing down the book value based on decline inprofitability)a. Merchandise and finished goods
Stated at monthly moving-average methodb. Raw materials and supplies
Stated at monthly moving-average method(ii) Depreciation and amortization methods for significant depreciable assets
1) Property, plant and equipment
Depreciated by the declining balance method. The Company and its domestic consolidated subsidiaries haveadopted the straight-line method for buildings (excluding facilities attached to buildings) acquired on and after
April 1, 1998, as well as the businesses related to real estate development and solar power generation.
Useful lives of main items are as follows:
Buildings and structures: 3 to 60 years
19

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

Machinery, equipment and vehicles: 2 to 17 years
2) Intangible assets
Depreciated by the straight-line method
Useful lives are as follows:
Software (for internal use): 5 years (internally usable period)(iii) Accounting standards for significant reserves
1) Provision for doubtful accounts
In order to prepare for credit losses such as those involving notes and accounts receivable - trade and loans
receivables, estimated uncollectible amount is provided for based on the historical write-off rate in the case ofgeneral receivables, while based on the consideration of individual collectability in the case of specificreceivables such as doubtful accounts receivables.
2) Provision for bonuses
The Company and its domestic consolidated subsidiaries record the provision for the payment of bonuses to
employees, based on the estimated amount of future payment.
3) Provision for directors’ retirement benefits
The Company and some of its domestic consolidated subsidiaries record the provision for directors’
retirement benefits at the amount required by internal regulations at the end of the fiscal year.
The Company and its domestic consolidated subsidiaries abolished the directors’ retirement benefits system
by resolutions of the Board of Directors’ meetings held on April 23, 2008, and May 20, 2008. Afterward, theCompany and its domestic consolidated subsidiaries resolved at the respective Annual General Meetings ofShareholders held on June 12, 2008, and June 27, 2008, that retirement benefits for discontinuance would be
paid to the directors serving as of the conclusion of these General Meetings of Shareholders, commensuratewith their terms of office up to such conclusions, and that specific amounts and methods of payment thereof
would be decided by the Board of Directors in the case of directors, while by the mutual consultation among
Audit & Supervisory Board Members in the case of Audit & Supervisory Board Members. Accordingly, theCompany continues to record the estimated amount of the aforementioned retirement benefits fordiscontinuance as provision for directors’ retirement benefits.
4) Provision for environmental measures
The provision for the expenditure for the purpose of environmental measures has been recorded at theestimated amount of expenditure at the end of the fiscal year under review.
(iv) Accounting method for retirement benefits
1) Periodic allocation of projected retirement benefits
In calculating retirement benefit obligations, the periodic allocation of projected retirement benefits up to
the end of the fiscal year under review is based the straight-line attribution method.
2) Method of amortizing actuarial differences and prior service costs
Prior service costs are recorded as expense over a certain number of years within the average remaining
years of service of the corresponding employees at the time of occurrence (generally 10 years) using thestraight-line method.
Actuarial differences are accounted for as expenses over a certain number of years within the averageremaining years of service of the corresponding employees (generally 10 years) using the straight-line method,commencing with the consolidated fiscal year following the one in which they were incurred.

20

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016(v) Accounting standards for significant revenue and expenses
1) Accounting standards for amount and cost of completed construction contracts
The amounts of completed construction contracts are recorded based on the percentage-of-completion
method (where percentage of completion is estimated by the cost-to-cost method) in the case where theprogress of construction by the end of the fiscal year under review is recognized with certainty, while otherwise
based on the completed contract method.
2) Accounting standards for revenue relating to finance leases
The revenue relating to finance leases is accounted for based on the method, whereby turnover and cost of
sales are recorded at the time of receipt of lease fees.
(vi) Standards for translation of significant foreign currency denominated assets or liabilities into yen
Foreign currency monetary assets and liabilities are translated into yen at the year-end spot exchange rate,
and translation adjustments are accounted for as profit or loss. The assets, liabilities, revenue and expenses ofoverseas subsidiaries and affiliates are translated into yen at the year-end spot exchange rate, and translation
adjustments are included in difference in foreign exchange in net assets.
(vii) Funds covered by Consolidated Statements of Cash Flows
Funds are comprised of cash on hand, demand deposits and short-term investments with maturity within
three months from the date of acquisition, which are highly liquid and readily convertible to cash involving
minimal risk of fluctuation in value.
(viii) Other significant matters on presenting consolidated financial statements
Accounting for consumption tax
Consumption taxes and local consumption taxes are accounted for by the tax exclusion method.
(Changes in accounting policies)
Effective from the fiscal year ended March 31, 2016, the Company has applied the “Accounting Standard forBusiness Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, September 13, 2013;
hereinafter the “Business Combinations Standard”), the “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, September 13, 2013; hereinafter the “Consolidated Financial Statements
Standard”), and the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013;
hereinafter the “Business Divestitures Standard”) and others. Accordingly, the Company’s accounting policies
have been changed. The difference arising from a change in the Company’s ownership interest in a subsidiary overwhich the Company continues to have control is recorded as share premium and acquisition related costs are
expensed in the consolidated fiscal year when they are incurred. Also, for business combinations to be conducted
at and after the beginning of the fiscal year ended March 31, 2016, the accounting method was changed to reflect
adjustments to the allocation of acquisition cost under provisional accounting treatment on the consolidated
financial statements of the consolidated fiscal year in which the days of the relevant business combinations areincluded. In addition, the Company has changed the presentation of profit and other related items, and thepresentation of minority interests to non-controlling interests. To reflect these changes in presentation,
reclassifications of accounts have been made to the consolidated financial statements for the fiscal year ended
March 31, 2015.
The Business Combinations Standard and others were applied in accordance with transitional treatments
stipulated in Paragraph 58-2 (4) of the Business Combinations Standard, Paragraph 44-5 (4) of the Consolidated
Financial Statements Standard and Paragraph 57-4 (4) of the Business Divestitures Standard, and they have beenprospectively applied from the beginning of the fiscal year ended March 31, 2016.
The presentation method has been changed in the Consolidated Statements of Cash Flows for the fiscal year
ended March 31, 2016. Cash flows associated with the acquisition or disposal of shares in subsidiaries without
21

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

involving changes in the scope of consolidation are presented under the heading of “Cash flows from financing
activities.” Cash flows associated with costs related to the acquisition of shares in subsidiaries involving changes
in the scope of consolidation, or expenses associated with the acquisition or disposal of shares in subsidiaries
without involving changes in the scope of consolidation, are presented under the heading of “Cash flows fromoperating activities.”
These changes have no effect on the consolidated financial statements nor on per share information for the
fiscal year ended March 31, 2016.

22

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Segment information)
1. Description of reportable segments
The Company’s reportable segments represent units for which discrete financial information is available.
Regular reviews are also carried out by the Board of Directors for the purpose of determining the allocation ofmanagement resources and evaluating business performance.
The Company has business divisions by type of business established in the head office. Each business division
formulates comprehensive strategies for its domestic and overseas operations, thereby deploying its businessactivities.
Accordingly, the Company comprises segments by type of business, with three reportable segments, namely
Concrete Products, Construction and Real Estate Development.
The Concrete Products segment engages in manufacturing and sales of concrete products, manufacturing of
formwork, sales of accessories, etc. The Construction segment engages in the undertaking of various contracted
construction. The Real Estate Development segment engages in leasing, management and development of realestate.
2. Method for calculating turnover, income (loss), assets, liabilities and other items by reportable segment
The accounting methods for reported business segments are generally the same as those stated in “Basicsignificant matters for the preparation of consolidated financial statements.”
The reportable segment income is based on operating income. Inter-segment turnover and transfers are basedon current market prices.
3. Information on calculating turnover, income (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2015 (April 1, 2014 to March 31, 2015)(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase inproperty, plant andequipment andintangible assets

Others(Note 1)

Total

Amountrecorded ontheAdjustments
consolidated(Note 2)
financialstatements(Note 3)Concrete
Products

Construction

Real Estate
Development

Total

22,488,847

12,034,819

1,022,231

35,545,898

472,61236,018,511―

36,018,511

12,342―35,347

47,690698

48,388(48,388)―

22,501,189
841,881
20,358,752

12,034,819
844,329
7,509,211

1,057,579
389,059
2,333,191

35,593,589
2,075,270
30,201,155

473,31076,772
1,989,059

36,066,899
2,152,042
32,190,215(48,388)―
13,817,682

36,018,511
2,152,042
46,007,898

307,993

47,919100,611456,524

71,073

527,598

61,328588,926

904,069

25,696

5,861

935,626

1,221,059

2,156,686

18,8092,175,496(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the environmental
equipment sales business, the sport facility management business, the rental business, and solar power
generation business.
2. Adjustments are as follows:(1) An adjustment to turnover of ¥(48,388) thousand is the elimination of inter-segment transactions.

23

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(2) An adjustment to segment assets of ¥13,817,682 thousand is corporate assets not allocated to reportablesegments, comprising investment securities of ¥12,610,997 thousand and assets associated withadministration divisions, etc. of ¥1,206,684 thousand.
(3) The adjustment to the increase in property, plant and equipment and intangible assets of ¥18,809 thousandaccounts for capital expenditure for the head office building, etc.
3. Total segment income corresponds to operating income on the Consolidated Statements of Income.
4. Depreciation and increase in property, plant and equipment and intangible assets include long-term prepaid
expenses and the related amortization.
5. During the second quarter of the fiscal year ended March 31, 2015, the Company acquired additional sharesin ASAHI CONCRETE WORKS CO., LTD., bringing it under the scope for applying the equity method.
The associated ¥1,085,360 thousand in negative goodwill included in share of income of associates is notallocated to a reportable segment.

24

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

For the fiscal year ended March 31, 2016 (April 1, 2015 to March 31, 2016)(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase inproperty, plant andequipment andintangible assets

Others(Note 1)

Total

Amountrecorded ontheAdjustments
consolidated(Note 2)
financialstatements(Note 3)Concrete
Products

Construction

Real Estate
Development

19,957,280

12,213,038

975,885

33,146,204

604,41733,750,621―

33,750,621

13,596―42,80456,401

10,491

66,892(66,892)―

19,970,877
153,128
19,016,772

12,213,038
1,148,258
7,880,404

1,018,690
422,877
2,278,731

33,202,606
1,724,264
29,175,908

614,908
169,815
1,746,038

33,817,514
1,894,080
30,921,947(66,892)―
12,935,325

33,750,621
1,894,080
43,857,273

402,632

63,678100,912567,224

109,918

677,142

41,833718,975

710,135

115,416

30,479856,0311,196

857,227

10,095867,322

Total(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the environmental
equipment sales business, the sport facility management business, the rental business, and solar power
generation business.
2. Adjustments are as follows:(1) An adjustment to turnover of ¥(66,892) thousand is the elimination of inter-segment transactions.
(2) An adjustment to segment assets of ¥12,935,325 thousand is corporate assets not allocated to reportablesegments, comprising investment securities of ¥11,759,521 thousand and assets associated withadministration divisions, etc. of ¥1,175,804 thousand.
(3) The adjustment to the increase in property, plant and equipment and intangible assets of ¥10,095 thousandaccounts for capital expenditure for the head office building, etc.
3. Total segment income corresponds to operating income on the Consolidated Statements of Income.
4. Depreciation and increase in property, plant and equipment and intangible assets include long-term prepaid
expenses and the related amortization.

25

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Per share information)
For the fiscal year ended
March 31, 2015

For the fiscal year ended
March 31, 2016

Net assets per share¥1,069.94¥1,095.70

Earnings per share¥136.70¥69.89(Notes) 1. Diluted earnings per share is not presented due to the absence of residual shares.
2. Basis for calculating earnings per share is as follows.
Items

For the fiscal year ended
March 31, 2015

For the fiscal year ended
March 31, 2016

3,585,808

1,802,083――

3,585,808

1,802,083

26,231,787

25,783,634

As of March 31, 2015

As of March 31, 2016

28,047,019

28,073,745

175,637

189,681[175,637][189,681]

27,871,381

27,884,063

26,049,389

25,448,560

Profit attributable to owners of parent company(Thousand yen)Amount not attributable to common shareholders(Thousand yen)
Profit attributable to owners of parent company
relating to common stock (Thousand yen)
Average number of common stock during theperiod (Shares)
3. Basis for calculating net assets per share is as follows.
Items
Total net assets (Thousand yen)Amount to be subtracted from the total net assets(Thousand yen)[Non-controlling interest of the above (Thousandyen)]
Net assets at year-end relating to common stock(Thousand yen)
Number of common stock at year-end used for
calculating earnings per share (Shares)(Significant subsequent events)
No relevant items.

26

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

6. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(Thousand yen)
As of March 31, 2015
AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Lease receivables
Merchandise and finished goods
Raw materials and supplies
Prepaid expenses
Deferred tax assets
Short-term loans receivable from subsidiaries andassociates
Accounts receivable - other
Other
Provision for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
SoftwareTelephone subscription right
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable from subsidiaries
and associates
Long-term accounts receivable from subsidiaries
and associates
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Long-term accounts receivable - other
Other
Provision for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

27

As of March 31, 2016

6,857,916
3,598,915
8,596,014
14,084
1,940,869
392,565
23,719104,191

7,663,878
3,453,088
7,815,883
11,722
1,476,574
292,545
24,971
70,655

10,000―271,668
70,937(11,963)
21,868,919

117,096
123,182(11,116)
21,038,483

3,016,163
139,211
1,926,573
8,740
17,2383,682,081
180,4908,970,500

2,918,615
151,067
1,856,216
5,670
42,6093,681,909
300,995
8,957,083

50,387
7,701
43,150101,239

24,4537,701
106,800
138,954

3,787,598
2,748,412

2,844,766
2,748,412

474,426

400,000

1,178,489

789,779

3,039

2,431

21,638285,032
262,137(1,691,518)
7,069,256
16,140,996
38,009,915

13,434
237,032
258,972(1,326,160)
5,968,669
15,064,707
36,103,190

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(Thousand yen)
As of March 31, 2015
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Short-term loans
Accounts payable - otherAccrued expenses
Income taxes payable
Advance payments - other
Deposits received
Provision for bonuses
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Provision for retirement benefits
Provision for directors’ retirement benefits
Provision for loss on guarantees
Provision for environmental measures
Long-term lease and guarantee deposited
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Share premium
Legal capital surplus
Other capital surplus
Total share premium
Retained earnings
Other retained earnings
Reserve for advanced depreciation of fixed
assetsReserve for reduction entry of gain on
insurance adjustment
General reserve
Retained earnings brought forward
Other retained earnings
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

28

As of March 31, 2016

6,872,557
3,737,973
500,000
269,937
47,234
425,635
291,159
66,481
184,006―
12,352
12,407,338

5,558,875
3,725,493
500,000
450,804
48,243
155,291
161,80964,901
179,684
1,334
1,317
10,847,758

867,750
1,823,877
47,460661,914
22,302608,2124,031,517
16,438,856

496,610
1,939,411
32,710224,564
20,968611,478
3,325,742
14,173,500

5,251,400

5,251,400

1,312,850
3,430,166
4,743,016

1,312,850
3,430,218
4,743,068

2,094,154

2,076,035

6,216

5,865

5,500,000
3,716,815
11,317,187
11,317,187(650,113)
20,661,490

6,000,000
4,635,336
12,717,237
12,717,237(1,054,407)
21,657,298

909,568
909,568
21,571,059
38,009,915

272,390272,390
21,929,689
36,103,190

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

(2) Non-consolidated Statements of Income(Thousand yen)
For the fiscal year ended
March 31, 2015
TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Technical support fee
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Real estate development maintenance and management
expenses
Contribution
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
State subsidy
Insurance income
Total extraordinary income
Extraordinary losses
Structural reform expenses
Loss on disposal of fixed assets
Loss on sales of golf club memberships
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes

29

For the fiscal year ended
March 31, 2016

32,384,630
27,071,534
5,313,095
3,598,117
1,714,977

31,743,410
26,364,567
5,378,842
3,540,939
1,837,903

8,530
234,915
83,620253,530
580,596

6,594
285,276
81,047
191,825564,743

3,766
―

4,020
25,946

41,326

8,726

6,344
10,292
61,7302,233,844

7,249
13,44559,3882,343,259――
128,110
128,110

5,381
66,179―71,560―50,5008,539
059,0392,302,914
675,605(116,686)
558,919
1,743,995

171,892
2,680――
174,572
2,240,246
469,553(31,951)437,602
1,802,644

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016(3) Non-consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2015
(Thousand yen)
Shareholders’ equity
Share premium
Share capital Legal capital Other capitalsurplussurplus
Balance at beginning of current
period5,251,400

1,312,850

Total sharepremium

3,430,056

4,742,906

Reserve foradvanceddepreciationof fixed
assetsRetained earnings
Other retained earnings
Reserve for
Retained
reduction
Generalearnings
entry of gain
reservebrought
on insurance
forwardadjustment

2,020,395

6,273

5,000,000

Total retained
earnings

2,868,621

9,895,290(73,759)―

56―(500,000)―

Dividends of surplus(322,097)(322,097)

Profit after income taxes

1,743,995

1,743,995

Changes of items during period
Reversal of reserve foradvanced depreciation of
fixed assets
Reversal of reserve for
reduction entry of gain on
insurance adjustment

73,759(56)

Provision of general reserve

500,000

Purchase of treasury shares
Disposal of treasury shares

110

110

110

110

73,759(56)

500,000

848,194

1,421,897

3,430,166

4,743,016

2,094,154

6,216

5,500,000

3,716,815

11,317,187

Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period

5,251,400

1,312,850

Shareholders’ equity
Total shareholders’equityTreasury shares
Balance at beginning of current
period(648,512)

19,241,084

Valuation and translation adjustments
Valuation difference
Total valuation andon available-for-saletranslation adjustments
securities
1,064,012

1,064,012

Total net assets

20,305,096

Changes of items during period
Reversal of reserve foradvanced depreciation of
fixed assets
Reversal of reserve for
reduction entry of gain on
insurance adjustment
Provision of general reserve
Dividends of surplus(322,097)(322,097)

Profit after income taxes

1,743,995

1,743,995

Purchase of treasury shares(1,663)(1,663)(1,663)

Disposal of treasury shares

62

172

172

Other changes ofshareholders’ equity
Total changes during current
periodBalance at end of current period(154,444)(154,444)(154,444)(1,600)1,420,406(154,444)(154,444)

1,265,962(650,113)

20,661,490

909,568

909,568

21,571,059

30

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

For the fiscal year ended March 31, 2016
(Thousand yen)
Shareholders’ equity
Share premium
Share capital Legal capital Other capitalsurplussurplus
Balance at beginning of current
period5,251,400

1,312,850

3,430,166

Total sharepremium

4,743,016

Reserve foradvanceddepreciationof fixed
assetsRetained earnings
Other retained earnings
Reserve for
Retained
reduction
Generalearnings
entry of gain
reservebrought
on insurance
forwardadjustment

2,094,154

6,216

5,500,000

Total retained
earnings

3,716,815

11,317,187

18,118―350―(500,000)―

Dividends of surplus(402,594)(402,594)

Profit after income taxes

1,802,644

1,802,644

Changes of items during period
Reversal of reserve foradvanced depreciation of
fixed assets
Reversal of reserve for
reduction entry of gain on
insurance adjustment(18,118)(350)

Provision of general reserve

500,000

Purchase of treasury shares
Disposal of treasury shares

51

51

51

51

(18,118)(350)

500,000

918,520

1,400,050

3,430,218

4,743,068

2,076,035

5,865

6,000,000

4,635,336

12,717,237

Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period

5,251,400

1,312,850

Shareholders’ equity
Total shareholders’equityTreasury shares
Balance at beginning of current
period(650,113)

20,661,490

Valuation and translation adjustments
Valuation difference
Total valuation andon available-for-saletranslation adjustments
securities
909,568

909,568

Total net assets

21,571,059

Changes of items during period
Reversal of reserve foradvanced depreciation of
fixed assets
Reversal of reserve for
reduction entry of gain on
insurance adjustment
Provision of general reserve
Dividends of surplus(402,594)(402,594)

Profit after income taxes

1,802,644

1,802,644

Purchase of treasury shares(404,318)(404,318)(404,318)

Disposal of treasury shares

24

75

75

Other changes ofshareholders’ equity
Total changes during current
periodBalance at end of current period(637,177)(637,177)(637,177)(404,294)

995,807(637,177)(637,177)

358,630(1,054,407)

21,657,298

272,390272,390

21,929,689

31

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2016

7. Other(1) Changes in Directors and Audit & Supervisory Board Members
1. Candidates for Audit & Supervisory Board Members (scheduled to be appointed on June 29, 2016)
Full-time Audit & Supervisory Board Member Hirokazu Suzuki (current Management Officer, General
Manager of General Administrative Department andEnvironmental Business Division)
Audit & Supervisory Board Member
Yoshihide Shimoyama (reappointment)
Audit & Supervisory Board Member
Mamoru Hara (reappointment)
Audit & Supervisory Board Member
Torao Yamakawa (current President and Representative
Director of Heart Agency Co., Ltd.)
2. Audit & Supervisory Board Members scheduled to retire (scheduled to retire on June 29, 2016)
Full-time Audit & Supervisory Board Member Shigeo Miyanogawa (scheduled to be appointed as aManagement Advisor)
Audit & Supervisory Board Member
Keiichi Kiyota

32