Financial Results for the First Half of Fiscal Year Ending March 31, 2012
(Six Months Ended September 30, 2011) <under Japanese GAAP> (Consolidated)
November 10, 2011
Company name : NIKKO COMPANY
ID number : 5343 Stock listing : Nagoya Stock Exchange Second Section
URL : http://www.nikko-company.co.jp/
Representative : Makoto Yoshida, Chief Executive Officer
Contact : Yasuhiro Kurauchi, Finance and Administration, General Manager (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report : November 11, 2011
Scheduled date to begin dividend payments : Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: None
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2011 (April 1, 2011 - September 30, 2011)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％

Millions of yen
Six months ended
Sept. 30, 2011

9,056

Six months ended
Sept. 30, 2010
Note: Comprehensive income (Millions of yen):

Millions of yen

Net income％Millions of yen％

Millions of yen-42-31-241--------

Sept. 30, 2011: 240 ( -%)Net income pershare

Sept. 30, 2010: - (-%)

Diluted net income
per share
Yen

Six months ended
Sept. 30, 2011

Ordinary income％

Yen

12.86

-

Six months ended
Sept. 30, 2010
Note: Nikko Company has changed its fiscal year-end from October 31 to March 31 resulting in an irregular 5-month period forFiscal 2011(from November 1, 2010 to March 31, 2011), as a result, a quarterly consolidated financial report for the First Half of Fiscal2011 has not been prepared. Therefore consolidated operating results for the First Half of Fiscal 2011 and comparisons with the same
period of the previous period are not provided.
(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of Sept. 30, 2011

13,444

3,622

26.9

193.34As of Mar. 31, 201113,288

3,381

25.4

180.49Reference:

Shareholders' equity (Millions of yen):

Sept 30, 2011: 3,622

Mar. 31, 2011: 3,381

2. Dividends(Record date)1Q-endYen

Year ended Mar. 31, 2011Year ending Mar. 31, 2012
Year ending Mar. 31, 2012
(forecast)
Notes: Revision of dividend forecast during the period: None

Dividend per share
2Q-end3Q-endYen
Yen
0.00-1Year-end

Annual
Yen

Yen

0.00

0.00

0.00

0.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2012 (April 1, 2011 - March 31, 2012)(Percentage figures represent changes from the same period of the previous year.)
Net income perNet sales
Operating income
Ordinary income
Net income
share
Full year

Millions of yen%

Millions of yen%

19,500-100-

Millions of yen
100%Millions of yen-200%

Yen-

10.67

Notes: Revision of projected consolidated performance during the period: None
The fiscal period ended March 31, 2011 was an irregular 5-month period (from November 1 to October 31) resulting from the change infiscal year end and therefore comparisons with the previous period are not provided.
.
4. Other(1) Changes in major subsidiaries during the period: None
New: — companies (Company name:Eliminated: — companies (Company name:))(2) Application of special accounting methods for quarterly consolidated financial statements: Yes
Note: Application of simplified methods and special accounting methods for presenting quarterly consolidated financial statements(3) Changes in accounting policies, changes in accounting estimates, or restatement
1) Changes in accounting policies due to changes in consolidated accounting methods: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement: None
(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Sept. 30, 2011:
19,572,000 sharesMar. 31, 2011:
2) Number of treasury stock at the end of the period
Sept. 30, 2011:
837,126 sharesMar. 31, 2011:
3) Average number of shares issued during the period (cumulative; consolidated)
Six months ended Sept. 30, 2011: 18,735,474 shares

19,572,000 shares
835,419 shares*Information regarding the implementation of quarterly review procedures
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments andExchange Law. At the time of disclosure, we have completed the review process for these consolidated statements.
*Appropriate use of business forecasts, other special items
Forecasts regarding future results in these materials are based on assumptions judged to be valid and information available to theCompany at the time the materials were created. Actual results may differ significantly from these forecasts for a number of reasons.

21. Other Information(1) Overview of Changes in Consolidated Subsidiaries
No reportable information(2) Overview of Adoption of Special Accounting Methods
1) Simplified Accounting Method(Valuation of inventory assets)
The value of a certain inventories at the end of the period under review is calculated using a rational method, based on physicalinventories at the end of the previous fiscal year, rather than physical inventories at the end of the period under review.
(Calculation of depreciation expense for fixed assets)
For assets subject to the declining balance method, depreciation was calculated pro rate based on the amount for the fiscal year.
2) Special accounting treatment for preparing quarterly consolidated financial statements
No reportable information(3) Changes in accounting principles, accounting estimates and retrospective restatement for consolidated
No reportable 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
Other
Allowance 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
OtherAllowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4FY03/2011(As of Mar.31,2011)(Millions of yen)First half of FY03/2012(As of Sept. 30,2011)

1,468
3,060
1,959
857
218
352
2132(158)
7,893

1,310
2,973
2,234
775
436
395
1127(169)
8,086

6,750
(4,426)2,324
1,261
6,900(6,089)
810
4,395
319

6,781
(4,514)
2,267
1,261
7,058
(6,198)
859
4,388
283

542
525
(388)
679
5,395
13,288

552
521
(388)
686
5,358
13,444

3,364
793
162
30
373
103
1,385
6,212

3,603
871
233
41
211
104
1,437
6,502

1,720
1,414
99
459
3,694
9,907

1,612
1,186
97
424
3,320
9,822

3,200
2,066
(1,231)
(334)
3,701

3,200
1,321(244)
(334)
3,941

(191)
(128)
(319)
3,381
13,288

(181)
(138)
(319)
3,62213,444

(2) Consolidated quarterly statements of income
and consolidated quarterly statements of comprehensive income
Consolidated quarterly statements of income(Millions of yen)First half of FY03/2012(Apr.1,2011-Sept.30,2011)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

9,056
6,337
2,718
2,676
42

Non-operating income
Interest income
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income

012415425
23166531Extraordinary Income
Gain on sales of noncurrent assets
Gain on abolishment of retirement benefit plan
Total extraordinary Income0283283

Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minolity inretests
Net Income

741
151263210222412415

Consolidated quarterly statements of comprehensive income(Millions of yen)First half of FY03/2012(Apr.1,2011-Sept.30,2011)
Income(loss) before minority interestsOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Other comprehensive income
Comprehensive income

241
9(9)
(0)
240

Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

6240―

(3) Consolidated Statements of Cash Flows(Millions of yen)First half of FY03/2012(Apr.1,2011-Sept.30,2011)
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
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

(464)
247
(74)
96
(25)
(12)
(22)

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

(81)
52
(106)
(4)
(139)

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
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

7750
(86)
(63)
(0)
(22)
(3)
(187)
1,287
1,100

7263
264
41
11(161)
(228)
(6)
25(0)
7810

(4) Going Concern Assumption
No reportable information.
(5) Segment Information[Segment Information]
Ⅰ First Half of FY03/2012 (Apr. 1, 2011 – Sept. 30, 2011)
1. Information related to net sales and profit or loss for each reportable segment

Housing &Environmental
Equipment

Tabletop

ElectroCeramics

Other(Note 1)(Millions of yen, rounded down)Amounts
shown onquarterly
Segment
Adjustment
consolidated
total(Note2)statements ofincome

Net sales(1)Sales to Outside
5,413
2,525
1,084
33
9,056
9,056
Customers(2)Intersegment sales
or Transfers
Total
5,413
2,525
1,084
33
9,056
9,056
Segment profit (loss)(Operating income (loss))
38486(131)(10)
329(287)
42
Notes: 1. The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Segment income adjustment of 287 million yen consists of expenses, such as general administrative expenses, andresearch and development costs that do not belong to the reportable segments.
3. The company has changed its fiscal year-end resulting in an irregular 5-month period for Fiscal 2011 and as a result aquarterly consolidated financial report for the First Half of Fiscal 2011 has not been prepared.
2. Information regarding impairment loss on fixed assets and goodwill by reportable segment
During the subject six-month period, impairment loss amounted to 41 million yen in the Electro-Ceramics Division.
(6) Significant changes in Shareholder’s Equity
No reportable information83. Supplementary Information(1) Sales by Segment

Industry Segment(Millions of yen, rounded down)Same period last year
(Apr. 1, 2010 – Sept. 30, 2010)

First Half of FY03/2012(Apr. 1, 2011 – Sept. 30, 2011)

FY03/2011(Nov. 1, 2010 - Mar. 31, 2011)

Net Sales

Percent of
Net Sales

Net Sales

Percent of
Net Sales

Net Sales

Percent of
Net Sales

Housing & Environmental
Equipment

4,846

53.7%

5,413

59.8%

4,390

56.6%

Tabletop

2,757

30.6

2,525

27.9

2,247

29.0

Electro- Ceramics

1,394

15.4

1,084

12.0

1,085

14.0

Other

26

0.3

33

0.3

31

0.4

Total

9,024

100.0

9,056

100.0

7,754

100.0

Notes:
1. Amounts are converted to sales prices.
2. Amounts do not include consumption taxes.
3. Due to the change of fiscal year-end, a quarterly consolidated financial report for the First Half of Fiscal 2011 has not been
prepared. However, for reference purposes, comparisons have been made with the same period of the previous year.
4. 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)

Industry Segment

Same period last year
(Apr. 1, 2010 - Sept. 30, 2010)

First Half of FY03/2012(Apr. 1, 2011- Sept. 30, 2011)

FY03/2011(Nov. 1, 2010 - Mar. 31, 2011)

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

Tabletop

750

27.2%

722

28.6%

685

30.5%

Electro- Ceramics361

25.9

346

32.0

306

28.3

Total

1,111

12.3

1,069

11.8

992

12.8

9

Overseas Sales
Ratio