Consolidated Financial Results for the Six Months of Fiscal Year Ending March 31, 2018
<under Japanese GAAP>
November 9, 2017
Company name : NIKKO COMPANY
ID number: 5343 Stock listing : Nagoya Stock Exchange Second Section
URL: http://www.nikko-company.co.jp/
Representative : Akiko Mitani, Chief Executive Officer
Contact: Kazuya Nunokawa, Chief Financial Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report: November 10, 2017
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 Six Months Ended September 30, 2017 (April 1, 2017 - September 30, 2017)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income

Profit (loss) attributableto owners of parent

Ordinary income％ Millions of yen％％
Millions of yen
Millions of yen
Millions of yen
Six months ended
6,458
2.3811(4)September 30, 2017
Six months ended
6,311(3.0)
(38)
(77)
(98)
September 30, 2016
Note: Comprehensive income (Millions of yen) :September 30, 2017 : 13 (-%)
September 30, 2016 : (83) (-%)
Net income
per share
Yen％-Diluted net income
per share
Yen

Six months ended
September 30, 2017(0.17)-

Six months ended
September 30, 2016

(4.21)-* Effective from the first quarter consolidated accounting period, the revenue previously included in "Rent income" under"Non-operating income" is described as "Net sales", The expenses previously included in "Selling, general and administrative expenses"
is described as "Cost of sales" ‘Six months ended September 30, 2016’ on (1) consolidated operating results is also stated according
to the above way.
(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
Millions of yen
As of September 30,
9,239
842
2017
Year ended Mar.
9,273
829
31, 2017
Reference: Shareholders' equity (Millions of yen) : September 30, 2017: 842

Net assets per share%

Yen

9.1

36.15

8.9

35.57

Mar. 31, 2017: 829

2. Dividends(Record date)

Dividend per share
1Q-end2Q-end
Yen

Year ended Mar.
31, 2017
Year ending Mar.
31, 2018
Year ending Mar.
31, 2018(forecast)

3Q-end
Yen

-0.00

-0.00

Year-end
Yen

1AnnualYen

Yen-0.00

0.00

-0.00

0.00

NIKKO COMPANY

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2018 (April 1, 2017 - March 31, 2018)(Percentage figures represent changes from the same period of the previous year.)
Profit attributable
Net income
Net sales
Operating income
Ordinary income
to owners of parentper share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%YenFull year

13,300

3.0

150

127.7

200120196.7(5.1)

5.15* Revision of projected consolidated performance during the period :None* the above figures also follows the same way of 1.(1).
* The Group analyzes and makes decisions on investment and management scales and results, etc. from the viewpoint of improving
corporate value over the medium to long term without falling into short-term or speculative perspectives.
On the other hand, in addition to requests for active disclosure of future forecast information by stock exchanges, we carefully
considered the opinion of some investors who recognize the usefulness of the next term performance forecasts, and forecast
consolidated earnings forecasts for March 2018 we disclose.
In accordance with this purpose, there is no plan to do anything for quarterly earnings projections in the future.
※Notes(1) Changes in major subsidiaries during the period : None
(2) Application of special accounting methods for quarterly consolidated financial statements : None
(3) 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: None
3) Changes in accounting estimates : None
4) Restatement: NoneNone(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
September 30, 2017 :24,172,000 sharesMar. 31, 2017 :
24,172,000 shares
2) Number of treasury stock at the end of the period
September 30, 2017 :
861,829 sharesMar. 31, 2017 :
858,236 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Six months ended September 30, 2017 : 23,312,373 shares Six months ended September 30, 2016 : 23,317,608 shares* The current quarterly financial statements are not subject to a quarterly review.
*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.

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NIKKO COMPANY
Consolidated quarterly 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
OtherAllowance 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, netLand
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
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
Deferred tax ｌiabilities
Provision for directors' retirement benefits
Net defined benefit liability
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

3FY03/2017(As of Mar.31,2017)(Millions of yen)
FY03/2018(As of Sep.30,2017)

1,158
1,795
1,439
515
348
241
164(2)
5,661

981
1,819
1,337
612
565
237
65
(2)
5,616

6,765
(4,923)
1,842
4,378(4,133)244
1,226(1,116)109
1,121
120(84)
36
12
3,366

6,809
(5,004)
1,805
4,499(4,172)
327
1,238
(1,147)
91
1,121
111
(87)
24
25
3,394

183
85

1
69
70

55
105
(1)
159
3,611
9,273

56103
(1)
158
3,623
9,239

2,499
2,460
334
23
32
81
221
1,080
6,734

2,565
2,450
239
19
40
81
214
1,145
6,756

231
14
6
25
1,311
119
1,709
8,443

171
66
29
1,308
119
1,640
8,397

3,470
1,584
(3,652)
(337)
1,065

3,470
1,584
(3,656)
(337)
1,060

0(113)
(123)
(235)
829
9,273

0(113)
(105)
(217)
842
9,239

NIKKO COMPANY(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive income
Consolidated quarterly statements of income
FY03/2017(Apr.1, 2016-Sep.30,2016)(Millions of yen)
FY03/2018(Apr.1, 2017-Sep.30,2017)

6,3114,501
1,809
1,847(38)

6,458
4,534
1,923
1,915
805612240
7615
29

20532
563(77)

155―
627
11―
99

1―
10
1112(79)
16218(98)
―(98)

0―
0
11
16(0)
15(4)
―
(4)

FY03/2017(Apr.1, 2016-Sep.30,2016)(Millions of yen)
FY03/2018(Apr.1, 2017-Sep.30,2017)

(98)

(4)

(0)
4
1014(83)

0(0)
1717
13

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Commission fee
Gain on sales of wastes
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Foreign exchange loss
OtherTotal non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sales of noncurrent assets
Outplacement bounty
Total extraordinary Income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on fire
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Consolidated quarterly statements of comprehensive income

Profit (loss)
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 toComprehensive income attributable to owners of theparent
Comprehensive income attributable to non-controllinginterests

(83)
―

413―

NIKKO COMPANY(3) Consolidated Statements of Cash FlowsNet cash provided by (used in) operating activities
Income (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 product warranties
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Outplacement bounty
Loss on fire
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
Proceeds from insurance income
Outplacement bounty income received
Loss on fire paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments into 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
Net cash provided by (used in) financing activities
Net increase (decrease) in short-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 period5(Millions of yen)
FY03/2017(Apr.1, 2016-Sep.30,2016)(Millions of yen)
FY03/2018(Apr.1, 2017-Sep.30,2017)

(79)
197
(1)
(3)
(5)
12(0)
20
15―0(9)
11224

11179
(0)
0(7)
14(0)
15(0)
(1)
0――(23)

(0)

(0)

(96)
56
130
470
0(20)
(36)
―
9(5)
418(207)65(10)
35
0(15)
(4)
84
―
―100(0)
(93)
―(2)
(96)

(0)
(100)
1(2)
(101)

―(193)
(22)
(0)
(216)
(1)
104
912
1,017

(10)
(154)
(12)
(0)
(177)
0(177)
1,102924

NIKKO COMPANY[Consolidated Segment Information]Six Months ended September 30, 2016 (April 1, 2016 – September 30, 2016)
Functional Housing &Ceramics Environmental Tabletop
ProductEquipment

Other Segment(Note 1)
total

(Millions of yen, rounded down)Amounts on theAdjustment
consolidated
financial(Note 2)statements

Net sales
Sales to Outside Customers
Intersegment sales or Transfers
TotalSegment profit (loss)(Operating income (loss))

1,099

4,259

929

21

6,311

-

6,311-

--

66(6)

-

1,099

4,259

929

28

6,317

(6)

6,311

142

124(63)(4)

198(236)(38)

Note: 1. The category "Other" is warehouse business which is a business segment not included in the reportable segments.
Note: 2. Segment income adjustment of 236 million yen consists of expenses related to departments that do not belong tothe reportable segments.

Six Months ended September 30, 2017 (April 1, 2017 – September 30, 2017)
Functional Housing &Ceramics Environmental Tabletop
ProductEquipment

Other Segment(Note 1)
total

(Millions of yen, rounded down)Amounts on theAdjustment
consolidated
financial(Note 2)statements

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

1,262

4,159

1,005

30

6,458-

6,458---

66(6)

-

1,262

4,159

1,005

36

6,465(6)

6,458

207

136(77)2269(260)8

Note: 1. The category "Other" is warehouse business which is a business segment not included in the reportable segments.
Note: 2. Segment income adjustment of 260 million yen consists of expenses related to departments that do not belong tothe reportable segments.

6