Financial Results for the First Quarter of Fiscal Year Ending October 31, 2010
March 10, 2010
Company name : NIKKO COMPANY
ID number : 5343 Stock listing : Nagoya Stock Exchange Second Section
URL : http://www.nikko-company.co.jp/
Representative : Makoto Yoshida, Chief Executive Officer
Contact : Shigekazu Kaneda, Board Director and Executive Managing Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report : March 12, 2010

(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Three Months Ended January 31, 2010 (November 1, 2009 - January 31, 2010)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％

Millions of yen

Ordinary income％

Millions of yen

Net income％

Millions of yen％

Millions of yen

Three months ended
Jan. 31, 2010

4,093

(12.1)(386)-(379)-(391)-

Three months ended
Jan. 31, 2009

4,657-(651)-(642)-(662)-Net income pershare

Diluted net income
per share
YenYenThree months ended
Jan. 31, 2010(20.92)-Three months ended
Jan. 31, 2009(35.31)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of Jan. 31, 2010

14,226

4,817

33.9

257.69As of Oct. 31, 200913,828

5,258

38.0

280.59Reference: Shareholders' equity (Millions of yen):Jan. 31, 2010: 4,817

Oct. 31, 2009: 5,258

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

2Q-endYen
Year ended Oct. 31, 2009
Year ending Oct. 31, 2010
Year ending Oct. 31, 2010
(forecast)
Note: Revision of dividend forecast during the period: None

0.00

Year-end-

0.00

AnnualYen

Yen

0.00

0.00

--

0.00

0.00

3. Consolidated Forecast for the Fiscal Year Ending October 31, 2010 (November 1, 2009 - October 31, 2010)(Percentage figures represent changes from the same period of the previous year.)
Net income perNet sales
Operating income
Ordinary income
Net income
shareFirst half
Full year

Millions of yen%

Millions of yen

%

9,400
19,6004.4
14.9(400)(330)-

Millions of yen
(400)
(300)

Note: Revision of projected consolidated performance during the period: Yes- 1 -%-Millions of yen
(420)
(350)

%

Yen-(22.45)(18.71)

4. Others(1) Changes in consolidated subsidiaries during the period (Changes in scope of consolidation): None
(2) Application of simplified accounting methods and special accounting methods in the preparation of quarterly consolidated financial
statements: Yes
Note: Please refer to “Qualitative Information and Financial Statements, Other Information” on page 3 for further information.
(3) Changes in accounting principles, procedures, presentation methods for preparation of quarterly consolidated financial statements1) Changes caused by revision of accounting standards: Yes
2) Other changes: Yes
Note: Please refer to “Qualitative Information and Financial Statements, Other Information” on page 3 for further information.
(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Jan. 31, 2010:
19,572,000 shares
Oct. 31, 2009:
19,572,000 shares
2) Number of treasury stock at the end of the period
Jan. 31, 2010:
876,256 shares
Oct. 31, 2009:
831,026 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Three months ended Jan. 31, 2010: 18,726,166 shares
Three months ended Jan. 31, 2009: 18,776,631 shares*Appropriate use of business forecasts, other special items
These forward-looking statements involve uncertainties. Actual results may differ from those anticipated due to various factors that
may arise in the future.

- 2 -(Qualitative Information and Financial Statements)
1. Other Information(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation)
Not applicable(2) Application of simplified accounting methods and special accounting methods in the preparation of quarterly
consolidated financial statements
1) Simplified Accounting Method(Valuation of inventory assets)
The value of inventories at the end of the period under review is calculated using a rational method, based on physical inventories
at the end of the previous fiscal year, rather than physical inventories at the end of the period under review.
(Calculation of depreciation expense for fixed assets)
Amount of acquisition, disposal and depreciation of the fixed assets which to be applied to the quarter is calculated by distributing
the amount quoted or budgeted according to the length of the period.
2) Special accounting treatment for preparing quarterly consolidated financial statements
Not applicable(3) Changes in accounting principles, procedures and presentation methods for preparation of quarterly consolidated
financial statements
Changes in recording basis for completed work amount and completed work cost
Concerning the recording basis for earnings related to contract works, we had been applying the completed contract method.
Effective from the first quarter of the current fiscal year, however, the Company has applied “Accounting Standard for Construction
Contracts” (ASBJ Statement No. 15, December 27, 2007) and “Guidance for the Application of Accounting Standards forConstruction Contracts” (ASBJ Statement No. 18, December 27, 2007), we have been applying these accounting standards fromconstruction contracts, the construction of which was commenced in the first quarter of the current fiscal year, applying the percentof completion method to construction works showing the certainty of the results for portion completed by the end of the first quarterof the current fiscal year (the cost percentage method for estimation of percentage of work completion) and the completed contract
method to other works. These changes do not have a material effect on earnings and segment Information.

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

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netLand
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Allowance for loss on valuation of investments ofsubsidiaries and affiliates
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payableProvision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 4 -First quarter of FY10/2010(As of Jan.31,2010)(Millions of yen)
FY10/2009 Summary(As of Oct.31,2009)

1,749
3,121
2,216
777
393
335
2180
(197)
8,579

1,580
2,936
2,195
850
231
340
4155
(198)
8,096

6,634
(4,209)
2,425
1,261
7,656
(6,680)
975
4,662
240

6,633
(4,165)
2,468
1,261
7,580
(6,598)
981
4,771
249

739
459(297)776
450(298)

(158)

(157)

743
5,646
14,226770
5,731
13,828

3,266
1,390
100
18
196
104
1,172
6,249

3,116
422100
42306
105
1,333
5,427

1,340
1,237
92
489
3,158
9,408

1,350
1,196
88
506
3,141
8,569

3,200
3,045(823)
(343)
5,077

3,200
3,620
(1,007)
(333)
5,479

(144)
(115)
(260)
4,817
14,226

(109)
(111)
(220)
5,258
13,828

(2) Consolidated quarterly statements of income(For the Three-month Period)(Millions of yen)First quarter of FY10/2009 First quarter of FY10/2010(Nov.1,2008-Jan.31,2009) (Nov.1,2009-Jan.31,2010)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Priority use fee of products
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary loss
Extraordinary loss
Provision of allowance for loss on valuation ofinvestments of subsidiaries and affiliates
Other
Total extraordinary losses
Loss before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net loss- 5 -

4,657
3,564
1,093
1,745(651)

4,093
3,145
948
1,335(386)15032
840―292943134575(642)

1250322(379)80―8(651)
9211(662)

11(381)9110(391)

(3) Consolidated Statements of Cash Flows(Millions of yen)First quarter of FY10/2009 First quarter of FY10/2010(Nov.1,2008-Jan.31,2009) (Nov.1,2009-Jan.31,2010)
Net cash provided by (used in) operating activities
Loss before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in Provision of allowance for loss on
valuation of investments of subsidiaries and affiliates
Interest and dividends income
Interest expenses
Loss (gain) on valuation of derivatives
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

- 6 -

(651)
123
359
(232)
42(381)
140
(1)
(109)
40

8

0(3)
4
35(5)

(2)
12
2(185)

(308)

(1)

(192)
(261)
(13)
(1,093)3(4)(42)(1,137)

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

(124)
124
(315)
0(316)(24)
24(61)
(3)
(65)

(421)
―
(12)
―
(433)
(23)
(1,909)
3,714
1,804

967
(10)
(9)
(25)
922
(3)
169
1,4021,571

(4) Going Concern Assumption
No reportable information.

(5) Segment Information(Industry Segment Information)
First Quarter of FY10/2009 (Nov. 1, 2008 - Jan. 31, 2009)
Housing &Environmental
Equipment

Tabletop(Millions of yen, rounded down)
ElectroCeramics

OtherSegment
total

Net sales(1)Sales to Outside
2,621
1,258
768
8
4,657
Customers(2)Intersegment sales
or Transfers
Total
2,621
1,258
768
8
4,657
Operating income (loss)
(30)
(385)
(65)
(11)
(492)
Notes: 1. Major products in each industry segment:
Industry segments are classified based on the similarities of products, markets and so on.
Industry Segment
Major Products
Housing &Equipment
Tabletop

Environmental

Electro-Ceramics

4,657--

(159)

4,657
(651)

Alumina substrates, Hybrid IC, LTCC substrates,
Dielectric ceramics

Housing &Environmental
Equipment

Tabletop(Millions of yen, rounded down)
ElectroCeramics

OtherSegment
total

Net sales(1)Sales to Outside
2,303
1,201
582
6
4,093
Customers(2)Intersegment sales
or Transfers
Total
2,303
1,201582
64,093Operating income (loss)
(61)
(68)
(90)
(14)
(234)
Notes: 1. Major products in each industry segment:
Industry segments are classified based on the similarities of products, markets and so on.
Industry Segment
Major Products
Environmental

Electro-Ceramics-FRP bath-tubs, Bathroom units, Septic tanks, Water treatment facilities,Tiles, Wind turbine system
Fine bone china, Fine vitrified china, Fine porcelain, Oven wareFirst Quarter of FY10/2010 (Nov. 1, 2009 - Jan. 31, 2010)

Housing &Equipment
Tabletop

Elimination or Consolidated
corporate
Total

Elimination or Consolidated
corporate
Total-4,093--(152)

4,093
(386)

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

- 7 -(Overseas Sales)First Quarter of FY10/2009 (Nov. 1, 2008 - Jan. 31, 2009)
North America
Overseas sales
Consolidated net sales
Percentage of overseas sales
against consolidated net sales(Millions of yen, rounded down)
Asia

Other158188

223.4%

4.1%

0.4%

First Quarter of FY10/2010 (Nov. 1, 2009 - Jan. 31, 2010)
North America
Overseas sales
Consolidated net sales
Percentage of overseas sales
against consolidated net sales

Consolidated total
369
4,657
7.9%

(Millions of yen, rounded down)
Asia

Other

Consolidated total

201

216

17436
4,093

4.9%

5.3%

0.5%

10.7%

Notes :
1. The countries or areas are classified based on the geographical proximity.
2. Major countries and areas which belong to each classification:
North America : U.S.A., Canada
Asia: Korea, China, Other Asian Countries
3. Overseas sales include the export sales of the company and domestic subsidiaries and the domestic sales of thesubsidiaries abroad.

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

(Supplementary Information)
Sales by Segment

Industry Segment(Millions of yen, rounded down)First Quarter of FY10/2009(Nov. 1, 2008 - Jan. 31, 2009)First Quarter of FY10/2010(Nov. 1, 2009 - Jan. 31, 2010)

FY10/2009(Nov. 1, 2008 - Oct. 31, 2009)

Net Sales

Percent ofNet Sales

Net Sales

Percent ofNet Sales

Net Sales

Housing & Environmental
Equipment

2, 62156.3%

2, 303

56.3%

9,756

57.2%

Tabletop

1,258

27.0

1,201

29.4

5,007

29.3

Electro- Ceramics

768

16.5

582

14.2

2,268

13.3

Other

80.2

60.1

30

0.2

Total

4,657

100.0

4,093

100.0

17,063100.0

Percent ofNet Sales

Notes:
1. Amounts are converted to sales prices.
2. Amounts do not include consumption taxes.
3. The following table indicates the Company’s Overseas sales share by industry segment and percentage figures represent
Overseas sales ratio.
(Millions of yen, rounded down)First Quarter of FY10/2009(Nov. 1, 2008 - Jan. 31, 2009)First Quarter of FY10/2010(Nov. 1, 2009 - Jan. 31, 2010)

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

Tabletop

237

18.8%

325

27.1%

1,197

23.9%

Electro- Ceramics

132

17.2

110

18.9

419

18.5

Total

369

7.9

436

10.7

1,616

9.5

Industry Segment- 8 -FY10/2009(Nov. 1, 2008 - Oct. 31, 2009)
Overseas Sales
Ratio