Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]May 20, 2020
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: Hirokazu Suzuki, Director and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of Annual General Meeting of Shareholders: June 26, 2020
Scheduled date of commencing dividend payments: June 29, 2020
Scheduled date of filing annual securities report: June 26, 2020
Preparation of supplementary briefing material on financial results: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 (April 1, 2019 to March 31, 2020)(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
35,051 （7.8)
1,811
2,642
8.4
2.4
March 31, 2020
Fiscal year ended
38,015
1,670
2,579
1.5
(0.5)
16.6
March 31, 2019
(Note) Comprehensive income: Fiscal year ended March 31, 2020: ¥1,723 million [(10.2)%]
Fiscal year ended March 31, 2019: ¥1,917 million [4.1%]
Earnings per
share

Diluted earnings
per share

Yen

Fiscal year ended
85.83
March 31, 2020
Fiscal year ended
82.81
March 31, 2019
(Reference) Share of income (loss) of associates:(2) Consolidated Financial Position
Total assets
Million yen

Million yen

%

2,105

2.5

2,053

24.3

Ordinary
incometo total assets

Return on
equityOperatingincome toturnover

Yen

%

%

%

―

6.5

5.4

5.2

―

6.6

5.2

4.4

Fiscal year ended March 31, 2020: ¥616 million
Fiscal year ended March 31, 2019: ¥729 million
Net assets
Million yen

As of March 31,
48,97833,1592020
As of March 31,
49,34532,0682019(Reference) Equity: As of March 31, 2020: ¥32,814 million
As of March 31, 2019: ¥31,835 million

Equity ratio

Net assets per share
%

Yen

67.0

1,342.50

64.5

1,290.73

(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, 2020
Fiscal year ended
March 31, 2019

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

1,760(1,496)(945)

10,333

3,793

(950)

(598)

11,0102. Dividends
Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)

Total

Yen

Yen

Yen

Yen

―

―

―

18.00

18.00

―

―

―

19.00

19.00

―

―

―

19.00

19.00

Total
dividends

Payoutratio(consolidated)

Yen Million yen

Dividends
to netassets(consolidated)

%

%

458

21.7

1.4

479

22.1

1.4

25.8

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(% indicates changes from the previous corresponding period.)
Profit attributable toEarnings
TurnoverOperating income
Ordinary income
owners of parent
per sharecompany
Million yen

First half
Full year% Million yen

15,500 (12.4)
34,000 (3.0)

600
1,700

%

Million yen%

Million yen%

Yen(35.5)
(6.1)

1,000
2,450

(39.7)
(7.3)

800
1,800

(38.1)(14.5)

32.73
73.64

* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): Yes
Newly included: ― (Company name)
Excluded: 1 (Company name) NIPPON HUME CONCRETE(THAILAND) CO., LTD.
(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(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, 2020: 29,347,500 shares
As of March 31, 2019: 29,347,500 shares

2) Total number of treasury shares at the end of the period
As of March 31, 2020: 4,904,971 shares
As of March 31, 2019: 4,683,183 shares
3) Average number of shares during the period
Fiscal year ended March 31, 2020: 24,527,583 sharesFiscal year ended March 31, 2019: 24,802,233 shares* The financial results are not subject to auditing by certified public accountants or auditing corporations.
* 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. Overview of Operating Results (4)Future Outlook” on page 3 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

Table of Contents
1. Overview of Operating Results ........................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year under Review .................................................. 2(2) Overview of Financial Position in the Fiscal Year under Review ................................................... 2(3) Overview of Cash Flows in the Fiscal Year under Review ............................................................. 2(4) Future Outlook ................................................................................................................................ 3
2. Basic Approach Concerning Selection of Accounting Standards ........................................................ 3
3. Consolidated Financial Statements ...................................................................................................... 4(1) Consolidated Balance Sheets .......................................................................................................... 4(2) Consolidated Statements of Income and Comprehensive Income .................................................. 6(3) Consolidated Statements of Changes in Net Assets ........................................................................ 8(4) Consolidated Statements of Cash Flows ....................................................................................... 10(5) Notes to the Consolidated Financial Statements ........................................................................... 12(Notes on going concern assumption) ........................................................................................... 12(Changes in significant subsidiaries) .............................................................................................. 12(Changes in accounting policies) .................................................................................................... 12(Segment information, etc.) .......................................................................................................... 12(Per share information) ................................................................................................................. 15(Significant subsequent events) ..................................................................................................... 15

1

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year ended March 31, 2020, the world economy remained on a modest recovery trend, but
an economic slowdown was feared based on the trade friction between the United States and China, and economic
sentiment in Japan turned downward. In addition, the impact of the novel coronavirus outbreak spread from thefourth quarter of the fiscal year, and conditions still required caution.
In terms of market trends affecting the Group, demand for Hume pipes in the sewerage-related business wasalmost equal to that in the previous year, but demand for concrete pile products in the foundations business fell
short of that in the previous fiscal year.
Under such business conditions, the Group worked diligently on three basic strategies—Strategy for theGroup’s growth, Strategy to improve competitiveness, and Strategy to enhance the management foundation—to
pursue stable profits and sustainable growth, which are the key objectives of the basic policy in Evolution All
Japan II (fiscal 2018 to 2020), the Group’s three-year medium-term management plan.
In the consolidated fiscal year ended March 31, 2020, orders received totaled ¥31,380 million (down 16.3%
year on year), and turnover amounted ¥35,051 million (down 7.8% year on year).
As for profit and loss, operating income was ¥1,811 million (up 8.4% year on year); ordinary income was¥2,642 million (up 2.4% year on year), mainly because of equity in earnings of affiliates and dividend income;and profit attributable to owners of the parent company was ¥2,105 million (up 2.5% year on year).
The coronavirus outbreak has not had a significant impact on earnings in this fiscal year.
Furthermore, at the Board of Directors’ Meeting that was held on May 14, 2019, to improve the Group’s
capital efficiency and make a greater return of profits to shareholders, the Company resolved to purchase treasury
stock, and it later purchased a total of ¥161 million in such stock.

(2) Overview of Financial Position in the Fiscal Year under Review
Total assets as of March 31, 2020, had decreased ¥366 million from the end of the previous consolidated fiscal
year, to ¥48,978 million. This was mainly because, while under non-current assets, buildings and structures
increased ¥1,186 million and investment securities increased ¥641 million, under current assets, cash and deposits
decreased ¥674 million and notes and accounts receivable - trade decreased ¥618 million, and under non-current
assets, construction in progress decreased ¥943 million.
In addition, under liabilities, total liabilities decreased ¥1,458 million from the end of the previous
consolidated fiscal year to ¥15,819 million. This was mainly because, while under current liabilities, notes andaccounts payable – trade decreased ¥533 million, short-term loans decreased ¥285 million, and income taxes
payable decreased ¥172 million, under non-current liabilities, deferred tax liabilities decreased ¥203 million.
Under net assets, total net assets increased ¥1,091 million from the end of the previous consolidated fiscal
year, to ¥33,159 million. This was mainly because, under retained earnings, while profit attributable to ownersof the parent company increased ¥2,105 million, there was a decrease of ¥458 million for cash dividends paid,
and valuation difference on available-for-sale securities decreased ¥425 million.
(3) Overview of Cash Flows in the Fiscal Year under Review
Cash and cash equivalents (hereinafter, “funds,” referring to cash and deposits minus time deposits withdeposit terms of over three months) as of March 31, 2020, decreased ¥676 million from the end of the previous
consolidated fiscal year to ¥10,333 million.
(Cash flows from operating activities)
Funds provided by operating activities during the consolidated fiscal year ended March 31, 2020, decreased¥2,032 million year on year to ¥1,760 million. This was mainly because of ¥2,659 million increase in profit
before income taxes and minority interests, a decrease of ¥603 million in notes and accounts receivable – trade,a decrease of ¥534 million in notes and accounts payable - trade, and income taxes paid of ¥757 million.

2

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(Cash flows from investing activities)
Funds used in investing activities during the consolidated fiscal year ended March 31, 2020, increased ¥545
million year on year to ¥1,496 million. This was mainly because of ¥909 million in purchase of fixed assets and¥657 million in purchase of investment securities.
(Cash flows from financing activities)
Funds used in financing activities during the consolidated fiscal year ended March 31, 2020, increased ¥346
million year on year to ¥945 million. This was mainly because of included cash dividends paid of ¥458 million,a decrease of ¥320 million in short-term loans, and purchase of treasury shares of ¥161 million.

(4) Future Outlook
In the last year of the medium-term management plan, Evolution All Japan II, the Group will work in unison
to increase corporate value based on the basic strategy of the management plan. However, at this point it isdifficult to predict the extent of the impact due to the coronavirus’ spread, and as such, we expect the operating
environment affecting the Group to remain harsh, marked by intensifying competition and changes in the market
structure.
With regard to our financial results for the consolidated fiscal year ending March 31, 2021, the Group expects
a turnover of ¥34,000 million, operating income of ¥1,700 million, ordinary income of ¥2,450 million, and profit
attributable to owners of parent of ¥1,800 million.

2. 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 of factors
including application trends by companies in Japan.

3

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousand yen)
As of March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
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

4

As of March 31, 2020

11,051,251
12,505,846
2,024,057
534,604
286,154(16,589)
26,385,324

10,376,529
11,887,000
2,433,113
519,544
169,935(16,498)
25,369,624

12,007,518(9,146,454)
2,861,064
15,116,115(13,499,398)
1,616,716
3,691,707
989,035
744,938(675,095)
69,8439,228,367

13,316,931(9,269,814)
4,047,116
13,559,656(12,041,439)
1,518,217
3,572,904
45,937756,563(675,329)
81,2349,265,410

101,360
101,360

119,910
119,910

13,331,756
96,724
13,635
320,469(131,930)
13,630,654
22,960,382
49,345,707

13,973,557
69,032
12,054
270,198(100,931)
14,223,911
23,609,232
48,978,857

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(Thousand yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans
Income taxes payable
Provision for bonuses
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

5

As of March 31, 2020

10,664,700
1,230,261
432,870
182,750
1,060,491
13,571,074

10,130,996
944,469
260,525
176,906
784,145
12,297,043

392,066
36,0178,657
2,710,572
545,912
13,257
3,706,483
17,277,558

188,766
17,2171,514
2,744,509
547,899
22,212
3,522,119
15,819,162

5,251,400
4,736,524
23,126,662(1,910,923)
31,203,663

5,251,400
4,688,447
24,715,817(2,073,120)
32,582,545

665,198
233,208(267,057)
631,349
233,135
32,068,148
49,345,707

240,023
227,280(235,658)
231,646
345,503
33,159,694
48,978,857

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year ended
March 31, 2019
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
Consumption taxes for prior periods
Real estate development maintenance and management
expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
State subsidy
Gain on sales of shares of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Structure reform expenses
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

6

For the fiscal year ended
March 31, 2020

38,015,646
32,120,130
5,895,516
4,225,043
1,670,473

35,051,886
29,225,302
5,826,584
4,015,233
1,811,351

2,127
112,476
729,723
41,443－
107,478
993,249

4,723
119,477
616,090
43,455
4,532
96,331
884,610

27,09232,146－
5,663

28,248
－
7,775
5,020

19,333
84,2352,579,486

12,55453,5982,642,363

143,520
1,440－
144,960－
1,440
75,02576,46570－
70
2,724,377
704,801(50,191)
654,6092,069,767
15,881
2,053,885

059,28959,2902,659,539
584,741(47,940)
536,800
2,122,739
17,442
2,105,296

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year ended
March 31, 2019

For the fiscal year ended
March 31, 2020

2,069,767

2,122,739(215,014)
29,30064,429(30,570)(151,854)
1,917,912(393,803)(5,927)47,554(47,526)(399,703)
1,723,035

1,902,030

1,705,592

15,881

17,442

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

7

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(3) Consolidated Statements of Changes in Net Assets
For the fiscal year ended March 31, 2019
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
period5,251,400

Share premium

Retained earnings

4,736,524

Treasury shares

21,509,299

Total shareholders’ equity(1,710,327)

29,786,896

Changes of items during period
Dividends of surplus(436,522)(436,522)

Profit attributable to owners ofparent company

2,053,885

2,053,885

Purchase of treasury shares(200,593)(200,593)

(2)

(2)

1,617,362(200,595)

1,416,767

23,126,662(1,910,923)

31,203,663

Disposal of treasury shares
Increase of treasury shares ofassociate company
Changes in scope of
consolidation
Change in ownership interestof parent due to transactions
with non-controllinginterests
Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period

5,251,400

4,736,524

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Difference inforeign exchange

Remeasurementsof defined benefit

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

905,884

203,908(326,588)

783,204

217,253

30,787,354

Changes of items during period
Dividends of surplus(436,522)

Profit attributable to owners ofparent company

2,053,885

Purchase of treasury shares(200,593)

Disposal of treasury shares
Increase of treasury shares ofassociate company
Changes in scope of
consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Other changes of shareholders’equity(2)(240,685)

29,30059,530(151,854)

15,881(135,973)

Total changes during current
period(240,685)

29,30059,530(151,854)

15,881

1,280,793

Balance at end of current period

665,198

233,208(267,057)

631,349

233,135

32,068,148

8NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

For the fiscal year ended March 31, 2020
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of current
period5,251,400

Share premium

Retained earnings

4,736,524

Treasury shares

Total shareholders’ equity(1,910,923)

23,126,662

31,203,663

Changes of items during period
Dividends of surplus(458,181)(458,181)

Profit attributable to owners ofparent company

2,105,296

2,105,296

Purchase of treasury shares
Disposal of treasury shares

16

Increase of treasury shares ofassociate company
Changes in scope of
consolidation
Change in ownership interestof parent due to transactions
with non-controllinginterests
Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period(161,925)(161,925)

20

37

(292)

(292)

(57,958)(57,958)(48,093)5,251,400(48,093)(48,076)

1,589,155(162,196)

1,378,881

4,688,447

24,715,817(2,073,120)

32,582,545

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Difference inforeign exchange

Remeasurementsof defined benefit

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

665,198

233,208(267,057)

631,349

233,135

32,068,148

Changes of items during period
Dividends of surplus(458,181)

Profit attributable to owners ofparent company

2,105,296

Purchase of treasury shares(161,925)

Disposal of treasury shares

37

Increase of treasury shares ofassociate company(292)

Changes in scope of
consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Other changes of shareholders’equityTotal changes during current
periodBalance at end of current period(57,958)(48,093)(425,175)(5,927)31,399(399,703)

112,367(287,335)(425,175)(5,927)31,399(399,703)

112,367

1,091,545

240,023

227,280(235,658)

231,646

345,503

33,159,694

9NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year ended
March 31, 2019
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
Increase (decrease) in provision for environmental
measuresInterest 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 shares of subsidiaries andassociates
Structure reform expenses
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
Decrease (increase) in other non-current assets
Increase (decrease) in other non-current liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

10

For the fiscal year ended
March 31, 2020

2,724,377
657,637(49,330)
642
106,468

2,659,539
670,017(31,066)(5,844)
108,942－(18,800)

920(7,142 )(114,604)
27,092
21,044(729,723)(143,520)
70(1,440)－(124,201)
28,24841,744(616,090)－
0(1,440)(75,025)－
2,632,025

59,289603,272(158,547)(28,239)(922,842)(504,812)
57,962(534,941)(111,495)
318,963(70)(19,661)
4,209,767
321,354(27,056)(710,730)
3,793,334

29,281(162,156)
9,257
14,5752,200,609
348,051(31,135)(757,086)
1,760,438

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(Thousand yen)
For the fiscal year ended
March 31, 2019
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Purchase of fixed assets
Proceeds from sales of fixed assets
Proceeds from state subsidy
Proceeds from sales of shares of subsidiaries resulting
in change in the scope of consolidation
Purchase of investments in 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
Cash dividends paid
Other payments
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

11

For the fiscal year ended
March 31, 2020―
19,996―(1,197,898)
163,9311,440―(2,059)―(657,685)(909,771)―
1,440
68,787――
61,908(950,622)(74,571)
2,700
74,911(1,496,248)

40,347(200,593)―(435,676)(2,419)(598,341)(11,838)
2,232,531
8,778,218
11,010,749(320,964)(161,925)
37(458,127)(4,301)(945,280)
4,308(676,781)
11,010,749
10,333,968

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(5) Notes to the Consolidated Financial Statements(Notes on going concern assumption)
No relevant items.
(Changes in significant subsidiaries)
During the fiscal year ended March 31, 2020, 60% of the shares of Nippon Hume Concrete (Thailand) Co., Ltd.,was transferred to Mongheng Group Co., Ltd.
With the transfer of shares, Nippon Hume Concrete (Thailand) Co., Ltd., changed from a consolidated subsidiaryto an equity-method affiliate.
(Changes in accounting policies)(Adoption of IFRS 16 [Leases])
The Company’s consolidated subsidiaries outside of Japan have adopted IFRS 16 (Leases) beginning with thefiscal year under review. In principle, all leases for which the Company is the borrower are recorded as assets andliabilities on the consolidated balance sheet.
The adoption of this accounting standard has a minimal impact on consolidated financial statements.
(Segment information, etc.)
1. Description of reportable segments
The Group’s reportable segments represent units for which discrete financial information is available. Regularreviews are also carried out by the Board of Directors for the purpose of determining the allocation of management
resources and evaluating business performance.
The Group comprises segments by type of products and services, with three reportable segments, namely
Foundations, Sewerage-related, and Solar Power Generation and Real Estate.
In Foundations, concrete piles are manufactured and sold, and pile driving work is carried out. In the Seweragerelated segment, Hume pipes, segments and other products are manufactured and sold, and pipe and drain
rehabilitation projects are carried out. In Solar Power Generation and Real Estate, real estate is rented, managed anddeveloped, and equipment related to solar power and the environment is sold and maintenance is provided for it.
(Changes to classification of reportable segments)
Beginning with the fiscal year ended March 31, 2020, the Group has changed its segments from “Concrete
Products,” “Construction,” and “Real Estate Development” to “Foundations,” “Sewerage-related,” and “Solar Power
Generation and Real Estate” in order to more accurately assess management results in each segment.
The segment information for the previous consolidated fiscal year is disclosed based on the method adopted withthis change.
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 based on
current market prices.
(Changes to method for measuring segment income)
Beginning with the fiscal year ended March 31, 2020, the Group has presented corporate expenses that had
previously been allocated to each segment as “Adjustments” that are not attributable to reportable segments in orderto more accurately assess management results in each segment.

12

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

3. Information on calculating turnover, income (loss), assets, liabilities and other items by reportable segment
For the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019)(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

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

Foundations

Seweragerelated

Solar Power
Generation
and Real
EstateTotal

26,075,545

10,337,328

1,404,167

37,817,040

198,606

38,015,646―

38,015,646

4,920

―

40,02044,941―

44,941(44,941)―

26,080,465
1,195,827
21,252,074

10,337,328
1,186,405
8,881,948

1,444,187
825,327
4,392,289

37,861,982
3,207,560
34,526,313

198,606
55,978289,886

38,060,588
3,263,538
34,816,199(44,941)(1,593,065)
14,529,507

38,015,646
1,670,473
49,345,707

305,015

143,631

189,274

637,921

19,164

657,086

34,560691,647

204,015

23,307885,107

1,112,431

66

1,112,497

63,411

1,175,909

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the sport facility
management business and the rental business.
2. Adjustments are as follows:(1) An adjustment to turnover of ¥(44,941) thousand is the elimination of inter-segment transactions.
(2) An adjustment to segment income of ¥(1,593,065) thousand is corporate expenses not allocated toreportable segments. Corporate expenses are general and administrative expenses not attributable toreportable segments.
(3) An adjustment to segment assets of ¥14,529,507 thousand is corporate assets not allocated to reportablesegments, comprising investment securities of ¥13,331,756 thousand and assets associated withadministration divisions, etc. of ¥1,197,750 thousand.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥63,411 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.

13

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

For the fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(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

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

Foundations

Seweragerelated

Solar Power
Generation
and Real
EstateTotal

22,862,163

10,650,846

1,360,604

34,873,614

178,272

35,051,886―

35,051,886

6,544

―

39,24945,793―45,793(45,793)―

22,868,708
911,086
18,814,329

10,650,846
1,519,038
10,023,564

1,399,853
743,343
4,728,852

34,919,408
3,173,468
33,566,746

178,272
45,347259,715

35,097,680
3,218,815
33,826,461(45,793)(1,407,464)
15,152,395

35,051,886
1,811,351
48,978,857

278,061

133,402239,374

650,839

17,116

667,955

38,839706,795

216,695

55,448585,968

858,111265

858,377

31,477889,854

Others(Note 1)

Total

(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the sport facility
management business and the rental business.
2. Adjustments are as follows:(1) An adjustment to turnover of ¥(45,793) thousand is the elimination of inter-segment transactions.
(2) An adjustment to segment income of ¥(1,407,464) thousand is corporate expenses not allocated toreportable segments. Corporate expenses are general and administrative expenses not attributable toreportable segments.
(3) An adjustment to segment assets of ¥15,152,395 thousand is corporate assets not allocated to reportablesegments, comprising investment securities of ¥13,973,557 thousand and assets associated withadministration divisions, etc. of ¥1,178,838 thousand.
(4) The adjustment to the increase in property, plant and equipment and intangible assets of ¥31,477 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.

14

NIPPON HUME CORPORATION (5262), Consolidated Financial Results for the Fiscal Year Ended March 31, 2020

(Per share information)
For the fiscal year ended
March 31, 2019

For the fiscal year ended
March 31, 2020

Net assets per share¥1,290.73¥1,342.50

Earnings per share¥82.81¥85.83(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, 2019

For the fiscal year ended
March 31, 2020

2,053,885

2,105,296――

2,053,885

2,105,296

24,802,233

24,527,583

As of March 31, 2019

As of March 31, 2020

32,068,148

33,159,694

233,135

345,503[233,135][345,503]

31,835,013

32,814,191

24,664,317

24,442,529

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 stocks (Thousand yen)
Average number of common stocks 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 stocks(Thousand yen)
Number of common stocks at year-end used for
calculating earnings per share (Shares)(Significant subsequent events)
No relevant items.

15