Consolidated Financial Results for the Third Quarter of Fiscal Year Ending October 31, 2010
(Nine Months Ended July 31, 2010) <under Japanese GAAP>
September 13, 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 : September 13, 2010
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 Nine Months Ended July 31, 2010 (November 1, 2009 - July 31, 2010)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income

Ordinary income％

Net income％％

Millions of yen％

Nine months ended
July 31, 2010

12,982

1.8(862)-(843)-(884)-

Nine months endedJuly 31, 2009

12,748(19.8)(1,501)-(1,383)-(1,422)-

Millions of yen

Net income pershare

Millions of yen

Millions of yen

Diluted net income
per share
Yen

Yen

Nine months ended
July 31, 2010

(47.19)-Nine months ended
July 31, 2009(75.84)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of July 31, 2010

14,061

4,308

30.6

229.94As of Oct. 31, 200913,828

5,258

38.0

280.59Reference: Shareholders' equity (Millions of yen):

July 31, 2010: 4,308

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
0.00

Year-end-Annual
Yen

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
share

Full year

Millions of yen%

Millions of yen%

18,2006.7(750)-

Millions of yen(720)Note: Revision of projected consolidated performance during the period: Yes- 1 -%-

Millions of yen(780)%

Yen-(41.62)

4. Other (Please refer to “Other Information” on page 3 of the attached documents for further information)(1) Changes in consolidated subsidiaries during the period: None
Note: Changes in specified subsidiaries affecting the scope of consolidation during the period(2) Application of simplified accounting methods and special accounting methods : Yes
Note: Application of simplified methods and special accounting methods for presenting quarterly consolidated financial statements(3) Changes in accounting principles, procedures, presentation methods
1) Changes caused by revision of accounting standards: Yes
2) Other changes: None
Note: Changes in accounting principles, procedures and presentation methods for presenting quarterly consolidated financial
statements described in “Change in Basis of Preparation of the Quarterly Consolidated Financial Statements”(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
July 31, 2010:
19,572,000 shares
Oct. 31, 2009:
19,572,000 shares
2) Number of treasury stock at the end of the period
July 31, 2010:
833,243 shares
Oct. 31, 2009:
831,026 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Nine months ended July 31, 2010: 18,739,594 shares
Nine months ended July 31, 2009: 18,755,706 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 -(Qualitative Information and Financial Statements)
1. Other Information(1) Overview of Changes in Consolidated Subsidiaries
No reportable information(2) Overview of Application of Simplified Accounting Methods and 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 and the first half of the current fiscal year, rather than physical inventories at theend 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
No reportable information(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 third
quarter of the current fiscal year (the cost percentage method for estimation of percentage of work completion) and the completed
contract method to other works. This changes had no 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 assetsOther
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
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-tradeShort-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
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 -Third quarter of FY10/2010(As of July 31,2010)(Millions of yen)
FY10/2009 Summary(As of Oct.31,2009)

1,535
2,930
2,328
927
412
342
3144
(197)
8,428

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

6,659
(4,290)
2,369
1,261
7,493
(6,557)
936
4,567
376

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

540
444(295)776
450(298)―(157)

689
5,633
14,061

770
5,731
13,828

3,623
516
154
44
192
101
1,357
5,990

3,116
422
100
42306
105
1,333
5,427

1,836
1,317
100
508
3,762
9,753

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

3,200
3,045
(1,316)
(334)
4,594

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

(164)
(121)
(285)
4,308
14,061

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

(2) Consolidated quarterly statements of income(For the Nine-month Period)First three quarters of FY10/2009(Nov.1,2008-July 31,2009)(Millions of yen)First three quarters of FY10/2010(Nov.1,2009-July 31,2010)

12,7489,915
2,833
4,334(1,501)

12,982
9,768
3,213
4,075(862)3100―
1022050―3254
872121182688(1,383)

38――3068(843)

50

5―

050

58949

―

―
57(1,390)28
231(1,422)

312(850)33033(884)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Priority use fee of productsRent income
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Commission fee
Other
Total non-operating expenses
Ordinary loss
Extraordinary Income
Gain on sales of noncurrent assets
Reversal of provision for loss on business of subsidiaries
and affiliates
Total extraordinary Income
Extraordinary loss
Loss on retirement of noncurrent assets
Provision of allowance for loss on valuation of investmentsof subsidiaries and affiliates
Loss on valuation of stocks of subsidiaries and affiliates
Total extraordinary losses
Loss before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxesNet loss- 5 -(3) Consolidated Statements of Cash Flows(Millions of yen)First three quarters of FY10/2009 First three quarters of FY10/2010(Nov.1,2008-July 31,2009)(Nov.1,2009-July 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 onvaluation of investments of subsidiaries and affiliates
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
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(1,390)580
276(276)
124(850)
429
(4)
(114)
121

49(0)

(8)
21(50)
821
1,017(9)38(5)
92
5(257)

0(145)(1,324)3(1,350)8(21)(46)(1,410)(393)
507
41(221)
9(38)
(37)
(288)

Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash provided by (used in) investment activities(66)
165(987)
106(0)(783)(88)
66(283)
7(26)
(325)

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
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(1,180)1,490―(13)(36)259(8)(1,941)
3,714
1,772

83600
(50)
(0)
(78)
555
(9)
(68)
1,402
1,334

- 6 -(4) Going Concern Assumption
No reportable information(5) Segment Information(Industry Segment Information)
First three quarters of FY10/2009 (Nov. 1, 2008 - July 31, 2009)
Housing &Environmental
Equipment

Tabletop(Millions of yen, rounded down)

ElectroCeramics

OtherSegment
total

Elimination or Consolidated
corporate
Total

Net sales(1)Sales to Outside
7,485
3,548
1,689
24
12,748Customers(2)Intersegment sales
or Transfers
Total
7,485
3,548
1,689
24
12,748Operating income (loss)
(152)
(432)
(428)
(33)
(1,047)
Notes:
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--(453)

12,748(1,501)

Alumina substrates, Hybrid IC,LTCC substrates, Dielectric ceramics

Housing &Environmental
Equipment

Tabletop(Millions of yen, rounded down)

ElectroCeramics

OtherSegment
totalNet sales(1)Sales to Outside
7,240
3,806
1,913
22
12,982Customers(2)Intersegment sales
or Transfers
Total
7,240
3,806
1,913
22
12,982
Operating income (loss)
(84)
(130)
(117)
(84)
(416)
Notes:
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

12,748

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

Housing &Equipment
Tabletop-

Elimination or Consolidated
corporate
Total-

12,982--(445)12,982(862)

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, 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 three quarters of FY10/2009 (Nov. 1, 2008 - July 31, 2009)
North America
Overseas sales
Consolidated net sales
Percentage of overseas sales
against consolidated net sales(Millions of yen, rounded down)

Asia

OtherConsolidated total

404

506

35

3.2%

4.0%

0.2%

First three quarters of FY10/2010 (Nov. 1, 2009 - July 31, 2010)
North America

946
12,748
7.4%(Millions of yen, rounded down)

Asia

OtherConsolidated total

Overseas sales
655
709
53
1,418
Consolidated net sales
12,982
Percentage of overseas sales
against consolidated net sales
5.0%
5.5%
0.4%
10.9%
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
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
No reportable information

3. Supplementary Information
Sales by Segment

Industry Segment(Millions of yen, rounded down)First three quarters ofFY10/2009(Nov. 1, 2008 - July 31, 2009)
Percent ofNet Sales
Net SalesFirst three quarters of
FY10/2010(Nov. 1, 2009 - July 31, 2010)
Percent of
Net Sales
Net Sales

FY10/2009(Nov. 1, 2008 - Oct. 31, 2009)
Percent of
Net Sales
Net Sales

Housing & Environmental
Equipment

7,485

58.7%

7,240

55.8%

9,756

57.2%

Tabletop

3,548

27.8

3,806

29.3

5,007

29.3

Electro- Ceramics

1,689

13.3

1,913

14.7

2,268

13.3

Other

240.2

220.2

300.2

Total

12,748100.0

12,982100.0

17,063100.0

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 three quarters ofFirst three quarters ofFY10/2009
FY10/2010
FY10/2009
Industry Segment(Nov. 1, 2008 - July 31, 2009)(Nov. 1, 2009 - July 31, 2010)(Nov. 1, 2008 - Oct. 31, 2009)
Overseas
Overseas Sales
Overseas
Overseas Sales
Overseas
Overseas Sales
Sales
Ratio
Sales
Ratio
Sales
Ratio
Housing & Environmental-%
30.0%-%
Equipment
Tabletop643

18.1970

25.5

1,197

23.9

Electro- Ceramics

303

18.0

444

23.3

419

18.5

Total

946

7.4

1,418

10.9

1,616

9.5

- 8 -