Financial Results for the Three Months of Fiscal Year Ending March 31, 2017
<under Japanese GAAP>
August 5, 2016
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, Managing Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report: August 10, 2016
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 Three Months Ended June 30, 2016 (April 1, 2016 - June 30, 2016)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％Millions of yen
Three months ended
June 30, 2016

2,914

％

Millions of yen(7.4)

Three months ended
3,147(16.9)
June 30, 2015
Note: Comprehensive income (Millions of yen) :Millions of yen(92)-(117)-(121)-(217)-(202)-(214)-

June 30, 2016: (110) ( -%)Net income
per share％

Profit (loss) attributableto owners of parent％
Millions of yen

Ordinary income

June 30, 2015: (202) ( -%)Diluted net income
per share
Yen

Yen
Three months ended
June. 30, 2016(5.20)-Three months ended
June. 30, 2015

(9.21)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of June 30, 2016

9,226572

6.2

24.53

As of Mar. 31, 2016

9,317

683

7.3

29.29

Reference: Shareholders' equity (Millions of yen) :June 30, 2016: 572

Mar. 31, 2016: 683

2. Dividends(Record date)1Q-end2Q-endYen

Year ended Mar. 31, 2016

-Year ending Mar. 31, 2017-

Year ending Mar. 31, 2017
(forecast)
Notes: Revision of dividend forecast during the period: None

Dividend per share
3Q-endYen
Yen

Year-end

Annual
Yen

Yen

0.00

-

0.00

0.00

0.00

-0.00

0.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 - March 31, 2017)(Percentage figures represent changes from the same period of the previous year.)Net sales

Full year

Operating income

Profit (loss) attributableto owners of parent% Millions of yen%

Ordinary income

Millions of yen%

Millions of yen%

13,800

1.1

120

-

Millions of yen
100-40-Net income
per share
Yen
1.72

Notes: Revision of projected consolidated performance during the period :None
Consolidated forecast for the six months ending September 30, 2016 have not been disclosed because the Company and its
subsidiaries track performance on an annual basis only.

1NIKKO COMPANY

4. Notes(1) Changes in significant subsidiaries (changes in specified subsidiaries accompanying changes in the scope of consolidation) 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: None

Yes(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
June 30, 2016:24,172,000 sharesMar. 31, 2016:24,172,000 shares
2) Number of treasury stock at the end of the period
June 30, 2016:
854,423 sharesMar. 31, 2016:
853,064 shares
3) Average number of shares issued during the period (cumulative; consolidated)
Three months ended June 30, 2016 : 23,318,645 shares
Three months ended June 30, 2015 : 23,321,501 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 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 Quarterly Financial Statements(Millions of yen)

(1) Consolidated Balance SheetAssets
Current 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, 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
Claims provable in bankruptcy, claims provable inrehabilitation and other
Deferred tax assets
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 payableProvision 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

3

As of March 31, 2016

As of June 30, 2016

982
1,992
1,200
632
282
228
1145(4)
5,460

1,219
1,597
1,248
623
481
222
2
77(3)
5,468

6,730
(4,783)1,946
4,600(4,296)
304
1,222(1,101)
121
1,121
251(173)
78
5
3,576

6,718(4,816)
1,901
4,570(4,284)
286
1,215(1,111)
103
1,121
251(184)
67
5
3,485

3
106
109

297
100

55

55

490

491

2112(491)
170
3,8569,317

6109(491)
171
3,757
9,226

2,387
2,540
382
46
45
44
242
870
6,559

2,404
2,540
377
41
17
65
237
1,007
6,690

565
37
6
48
1,282
133
2,075
8,634

501
316
20
1,269
133
1,963
8,654

3,470
1,584
(3,778)
(336)
939

3,470
1,584
(3,899)(337)
817

0(112)
(143)
(256)
683
9,317

0(109)
(136)
(245)
572
9,226

NIKKO COMPANY(2) Consolidated Quarterly Statements of Income
and Consolidated Quarterly Statements of Comprehensive Income

Consolidated Quarterly Statements of Income(Millions of yen)

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
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Outplacement bounty
Total extraordinary Income
Extraordinary loss
Loss on valuation of investment securities
Loss on fire
Total extraordinary losses
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxesProfit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Three months ended
June 30, 2015

Three months ended
June 30, 2016

3,147
2,249
898
1,116(217)

2,914
2,064
849
942(92)

012
9830

012―
921

9―
515(202)1030
547(117)――992―
2(205)
809(214)―(214)―1111(119)
5(3)2(121)―(121)

Consolidated Quarterly Statements of Comprehensive Income(Millions of yen)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

4

Three months ended
June 30, 2015

Three months ended
June 30, 2016

(214)

(121)

0(0)
1212(202)(0)
3710(110)

(202)
―

(110)
―

NIKKO COMPANY[Consolidated Segment Information]
Three months ended June 30, 2015 (April 1, 2015 - June 30, 2015)
FunctionalCeramics
Product

Housing &EnvironmentalEquipment(Millions of yen, rounded down)Amounts on theSegment
Adjustment
consolidated
financialtotal(Note)statements

Tabletop

Net sales
Sales to Outside Customers

592

2,004

551

3,147

-

3,147

Intersegment sales or Transfers------

592

2,004

551

3,147

-

3,147

78

(51)

(77)

(51)

(166)

(217)

Total
Segment profit (loss)(Operating income (loss))

Notes: Segment income adjustment of 166 million yen consists of expenses related to departments that do not belong to the reportablesegments.

Three months ended June 30, 2016 (April 1, 2016 - June 30, 2016)(Millions of yen, rounded down)Amounts on theSegment
Adjustment
consolidated
financialtotal(Note)statements

FunctionalCeramics
Product

Housing &Environmental
Equipment

Sales to Outside Customers

536

1,912

465

2,914

-

2,914

Intersegment sales or Transfers------

536

1,912

465

2,914

-

2,914

78

(28)

(28)

21(114)(92)

Tabletop

Net sales

TotalSegment profit (loss)(Operating income (loss))

Notes: Segment income adjustment of 114 million yen consists of expenses related to departments that do not belong to the reportablesegments.

5