Financial Results for the Fiscal Year Ended March 31, 2015<under Japanese GAAP> (Consolidated)
May 11, 2015
Company name : NIKKO COMPANY
ID number: 5343 Stock listing : Nagoya Stock Exchange Second Section
URL: http://www.nikko-company.co.jp/
Representative : Kazuto Futamata, Chief Executive Officer
Contact: Kazuo Miyanabe, Chief Financial Officer (Phone: +81-76-276-2121)
Scheduled date of general meeting of shareholders : June 25, 2015
Scheduled date to submit Securities Report :June 26, 2015
Scheduled date to begin dividend payments :Preparation of supplementary materials for financial results : None
Holding of financial results meeting :None(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2015 (April 1, 2014 - March 31, 2015)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income

Ordinary income

Millions of yen％

FY ended Mar. 31, 2015

15,591

(6.3)

(200)

-

FY ended Mar. 31, 2014

16,639

1.6

(473)

-

Note: Comprehensive income (Millions of yen) :Net income per
share

％

Millions of yen

Mar. 31, 2015 : (19) (-%)％

Millions of yen

(61)

-

(218)

-

(382)

-

(477)

-

Mar. 31, 2014 : (478) (-%)
Return on
equityDiluted net income
per share

Net income％

Millions of yen

Ordinary income
to total assets

Operating income
to net sales%%

FY ended Mar. 31, 2015

Yen
(10.37)Yen-(23.5)

(0.6)

(1.3)

FY ended Mar. 31, 2014(25.51)-(44.9)

(3.4)

(2.8)

%

Reference: Equity in earnings of affiliates (Millions of yen) : Mar. 31, 2015 : (2) Consolidated financial position
Total assets

Net assets

Millions of yen
10,395

As of Mar. 31, 2015

Mar. 31, 2014 :

10,705
As of Mar. 31, 2014
Reference: Shareholders' equity (Millions of yen) :-Equity ratio

Millions of yen
1,184

Net assets per share

11.4

%

Yen
50.80

6.3

35.85

671
Mar. 31, 2015: 1,184

Mar. 31, 2014: 671(3) Consolidated cash flow position
Net cash provided by (used in)Operating activities

Investment activities

Financing activities

FY ended Mar. 31, 2015

Millions of yen
163

Millions of yen
197

Millions of yen
449

FY ended Mar. 31, 2014

(72)

(286)

(449)

Cash and cash equivalents
at end of period
Millions of yen
1,208
394

2. Dividends
Dividend per share(Record date)1Q-endYen

2Q-end3Q-endYear-end

Yen

Yen

Yen Millions of yen

Yen

AnnualDividend on
Equity(consolidated)%%

Total dividends Payout ratio(annual)(consolidated)Year ended Mar. 31, 2014

-

0.00

-

0.00

0.00

-

-

-

Year ended Mar. 31, 2015

-

0.00

-

0.00

0.00

-

-

-

Year ending Mar. 31, 2016
(forecast)

-

0.00

-

0.00

0.00

1

-

NIKKO COMPANY

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2016 (April 1, 2015 - March 31, 2016)(Percentage figures represent changes from the same period of the previous year.)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year

16,000

2.6

50

-

50

-

0

-

0.00

Note: Consolidated forecast for the six months ending September 30, 2015 have not been disclosed because the Company and its
subsidiaries track performance on an annual basis only.
4. Notes(1) Changes in major subsidiaries during the period (Changes in specifies subsidiaries causing changes in scope of consolidation): NoneNew
: — companies (Company name:)Eliminated : — companies (Company name:)(2) Changes in accounting policies, changes in accounting estimates, or restatement
1) Changes in accounting policies due to changes in consolidated accounting methods :2) Changes other than 1) above: None3) Changes in accounting estimates : None
4) Restatement: None(3) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Mar. 31, 2015 :24,172,000 sharesMar. 31, 2014 :2) Number of treasury stock at the end of the period
Mar. 31, 2015 :
850,499 sharesMar. 31, 2014 :3) Average number of shares over period
Mar. 31, 2015 :21,029,919 sharesMar. 31, 2014 :Yes

19,572,000 shares
845,323 shares
18,728,149 shares(Reference) Non-consolidated financial results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2015 (April 1, 2014 - March 31, 2015)(1) Non-consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income

Ordinary income％

FY ended Mar. 31, 2015

14,707

(7.1)

(257)

-

(93)

-

(276)

-

FY ended Mar. 31, 201415,824

13.0

(501)

-

(389)

-

(569)

-

Net income per
share

％

Millions of yen％

Net income
Millions of yen

Millions of yen

Millions of yen％

Diluted net income
per share

Yen

Yen

FY ended Mar. 31, 2015

(13.13)-

FY ended Mar. 31, 2014(30.42)-(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

As of Mar. 31, 2015

11,805

1,189

10.1

51.01

As of Mar. 31, 2014

12,063

845

7.0

45.13

Reference: Shareholders' equity (Millions of yen) :Mar.31, 2015: 1,189%

Yen

Mar.31, 2014: 845*Information regarding the implementation of quarterly review procedures
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments andExchange Law. At the time of disclosure, we have not completed the review process for these consolidated statements.
*Appropriate use of business forecasts, other special items
Forecasts regarding future results in these materials are based on information available to the Company at the time the materials werecreated. Actual results may differ significantly from these forecasts for a number of reasons.

2

NIKKO COMPANY
Consolidated Financial Statements
FY03/2014(As of Mar.31,2014)(Millions of yen)
FY03/2015(As of Mar.31,2015)

501
2,711
1,374
573
329
290
0
128
(24)
5,885

1,285
2,469
1,407
582
224
259
1
119
(11)
6,336

6,705
(4,599)2,106
4,861(4,596)264
1,209(1,144)
65
1,194
557
(241)
316
45
3,992

6,729
(4,660)2,068
4,660(4,433)226
1,190(1,129)
61
1,145
463
(318)
144
62
3,708

10
111
122

4
82
87

573

139

516

494

131
(516)
704
4,820
10,705

123
(494)
263
4,058
10,395

3,256
1,800
335
183
57
54
389
1,240
7,317

2,729
1,765
369
79
49
51
276
1,184
6,504

745
155
36
1,654
―
123
2,716
10,034

851
77
44
1,581
8
142
2,706
9,210

3,200
1,321
(3,005)
(335)
1,179

3,470
1,584
(3,224)
(336)
1,494

(86)
(116)
(305)
(508)
671
10,705

1
(115)
(195)
(309)
1,184
10,395(1) Consolidated Balance Sheet
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Claims provable in bankruptcy, claims provable inrehabilitation and other
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for directors' retirement benefits
Net defined benefit liability
Deferred tax ｌiabilities
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

3

NIKKO COMPANY(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
FY03/2014(Apr.1, 2013-Mar. 31, 2014)(Millions of yen)
FY03/2015(Apr.1, 2014-Mar. 31, 2015)

16,63911,893
4,745
5,219
(473)

15,591
11,149
4,442
4,643
(200)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Rent income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of notes payable
Sales discounts
Other
Total non-operating expenses
Ordinary income (loss)

1
41
32
92
167

1
41
83
83
210

49
8
11
6
75
(382)

39
8
10
12
71
(61)

Extraordinary Income
Gain on sales of noncurrent assets
Gain on liquidation of subsidiaries and affiliates
Reversal of provision for loss on lead trouble measures
Total extraordinary Income

122
―
―
122

2
7
36
46

Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Impairment loss
Loss on valuation of stocks of subsidiaries and affiliates
Loss on sales of investment securities
Loss on lead trouble measures
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income (loss) before minolity interests
Net income (loss)

0
26
4
14
5
119
170
(430)
46
0
47
(477)
(477)

19
6
―
―
123
―
150
(165)
45
6
52
(218)
(218)

FY03/2014(Apr.1, 2013-Mar. 31, 2014)(Millions of yen)
FY03/2015(Apr.1, 2014-Mar. 31, 2015)

Consolidated statements of comprehensive income

Income(loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

4

(477)

(218)

(6)
5
―
(1)
(478)

87
0
110
198
(19)

(478)
―

(19)
―

NIKKO COMPANY(3)Consolidated Statements of changes in equity(Millions of yen)

FY03/2014 (Apr.1, 2013-Mar. 31, 2014)
Shareholders' equity
Capital stock
Balance at the beginning of current period

Capital surplus

3,200

Retained earnings

1,321(2,528)

Total shareholders'equityTreasury stock
(335)

1,657

Changes of items during the period
Net income (loss)

(477)

(477)

Purchase of treasury stock
Issuance of new shares

(0)

(0)

-

-

-

-

(477)

(0)

(478)

3,200

1,321

(3,005)

(335)

1,179

Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period

Valuation difference
on available-for-salesecurities
Balance at the beginning of current period

Accumulated other comprehensive income
Foreign currency Remeasurements of Accumulated othertranslation
defined benefit
comprehensive
adjustment
income
plans

(80)

(121)

-

(201)

Total net assets

1,455

Changes of items during the period
Net income (loss)(477)

Purchase of treasury stock(0)

Issuance of new shares
Net changes of items other thanshareholders' equity

(6)

5

(305)

(306)

(306)

Total changes of items during the period

(6)

5

(305)

(306)

(784)

Balance at the end of current period

(86)

(116)

(305)

(508)

671

(Millions of yen)

FY03/2015 (Apr.1, 2014-Mar. 31, 2015)
Shareholders' equity
Capital stock
Balance at the beginning of current period

Capital surplus

3,200

Retained earnings

1,321(3,005)

Total shareholders'equityTreasury stock
(335)

1,179

Changes of items during the period
Net income (loss)(218)

Purchase of treasury stock
Issuance of new shares

(218)
(0)

(0)

270

263

533

270

263

(218)

(0)

314

3,470

1,584

(3,324)

(336)

1,494

Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period

Valuation difference
on available-for-salesecurities
Balance at the beginning of current period

Accumulated other comprehensive income
Foreign currency Remeasurements of Accumulated othertranslation
defined benefit
comprehensive
adjustment
income
plans

(86)

(116)

(305)

(508)

Total net assets

671

Changes of items during the period
Net income (loss)(218)

Purchase of treasury stock(0)

Issuance of new shares533

Net changes of items other thanshareholders' equity

87

0

110

198

198

Total changes of items during the period

87

0

110

198

513

Balance at the end of current period

1

(115)

(195)

(309)

1,184

5

NIKKO COMPANY(4) Consolidated Statements of Cash Flows(Millions of yen)
FY03/2014
FY03/2015(Apr.1, 2013-Mar. 31, 2014) (Apr.1, 2014-Mar. 31, 2015)
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Loss on valuation of stocks of subsidiaries and affiliates
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for product warranties
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Loss on lead trouble measures
Reversal of provision for loss on lead trouble measures
Gain on liquidation of subsidiaries and affiliates
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

(430)
461
4
14
(21)
(46)
(1,329)
1,348
(54)
(10)
49
0
5
(121)
26
119
―
―
(53)

(165)
534
―
―
(36)
(3)
―
37
(113)
(8)
39
(19)
123
17
6
―
(36)
(7)
247

2

21

176
151
(278)
14
10
(49)
(48)
(72)

105
(527)
28
246
8
(39)
(51)
163

Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Proceeds from liquidation of subsidiaries and affiliates
Other, net
Net cash provided by (used in) investment activities

(88)
108
39
(524)
179
―
(0)
(286)

―
30
397
(277)
31
7
7
197

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Proceeds from issuance of common stock
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

100
―
(361)
(188)
(0)
―
(449)
1
(806)
1,201
394

(35)
500
(360)
(182)
(0)
528
449
2
813
394
1,208

6

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

Major Products
Septic tanks, Garbage disposal systems, System baths, Other FRP items,
Water treatment facilities, Small wind turbine generator systems,
Multi-function interior boards

Tabletop

Fine bone china, Fine vitrified china, Fine porcelain, Oven ware

Functional Ceramics Product

Alumina substrates, LTCC substrates, Dielectric ceramics

2. Information related to net sales and profit or loss for each reportable segment
FY03/2014(Apr. 1, 2013 - Mar. 31, 2014)
Housing &Environmental
Equipment(Millions of yen, rounded down)Amounts on the
Segment
Adjustment consolidated
total(Note 2)
financialstatements

Tabletop

Functional
Ceramics
Product

Other(Note 1)

10,296

4,110

2,230

2

16,639-16,639

-

-

-

-

-

-

-

10,296

4,110

2,230

2

16,639-16,639

164

(199)

259

(3)

221

(695)

(473)

3,843

3,257

1,619

7

8,727

1,978

10,705

Depreciation and Amortization

170

134

90

0

395

65

461

Increase in Property, plant andequipment and Intangible assets

513

125

52

0

692

113

806

-

4

-

-

4

-

4

Net sales
Sales to Outside Customers
Intersegment sales or Transfers
Total
Segment profit (loss)(Operating income (loss))
Segment assets
Other Items

Impairment loss

Notes: 1.The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Below is a description of adjustments.
（1） Segment income adjustment of 695 million yen consists of expenses related to departments that do not belong to thereportable segments.
（2） Segment assets adjustment of 1,978 million yen includes assets that do not belong to the reportable segments. The
assets consists of mainly surplus funds (cash and cash equivalents), long-term investment funds (investment
securities).
（3） Depreciation and Amortization adjustment of 65 million yen consists of Depreciation and Amortization related todepartments that do not belong to the reportable segments.
（4） Increase in Property, plant and equipment and Intangible assets adjustment of 113 million yen consists of capital
investments associated with departments that do not belong to the reportable segments.

7

NIKKO COMPANY

FY03/2015(Apr. 1, 2014 - Mar. 31, 2015)
Housing &Environmental
Equipment(Millions of yen, rounded down)Amounts on the
Segment
Adjustment consolidated
total(Note 2)
financialstatements

Tabletop

Functional
Ceramics
Product

9,887

3,254

2,450

15,591-

15,591

-

-

-

-

-

-

9,887

3,254

2,450

15,591-

15,591

253

3

233

490

(691)

(200)

3,337

3,129

1,630

8,096

2,298

10,395

Depreciation and Amortization

262

126

91

480

54

534

Increase in Property, plant andequipment and Intangible assets

83

35

71

189

36

226

-

-

-

-

-

-

Net sales
Sales to Outside Customers
Intersegment sales or Transfers
Total
Segment profit (loss)(Operating income (loss))
Segment assets
Other Items

Impairment loss

Notes: 1.The “Other” category of FY03/2014, was removed from reporting segment because there is no profit in FY03/2015.
2. Below is a description of adjustments.
（5） Segment income adjustment of 691 million yen consists of expenses related to departments that do not belong to thereportable segments.
（6） Segment assets adjustment of 2,298 million yen includes assets that do not belong to the reportable segments. The
assets consists of mainly surplus funds (cash and cash equivalents), long-term investment funds (investment
securities).
（7） Depreciation and Amortization adjustment of 54 million yen consists of Depreciation and Amortization related todepartments that do not belong to the reportable segments.
（8） Increase in Property, plant and equipment and Intangible assets adjustment of 36 million yen consists of capital
investments associated with departments that do not belong to the reportable segments.

8