Consolidated Quarterly Financial Results
for the Three Months Ended June 30, 2020
[Japanese GAAP]
August 6, 2020
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: http://www.nipponhume.co.jp
Representative: Minoru Okawauchi, President and Representative Director
Contact: Hirokazu Suzuki, Director and General Manager of Accounting Division
Phone: +81-3-3433-4111
Scheduled date of filing quarterly securities report: August 6, 2020
Scheduled date of commencing dividend payments: ―Preparation of supplementary briefing material on quarterly financial results: No
Holding of quarterly financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended June 30, 2020 (April 1, 2020 to June 30, 2020)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toTurnover
Operating income
Ordinary income
owners of parentcompany
Million yen%

Million yen%

Million yen%Three months ended
7,500(2.4)
476
9.3812 (15.3)
June 30, 2020Three months ended
7,687 (27.9)
435
41.0
959
31.5
June 30, 2019
(Note) Comprehensive income: Three months ended June 30, 2020: ¥1,143 million [71.1%]
Three months ended June 30, 2019: ¥668 million [-0.3%]
Earnings per share

Diluted earnings pershare

YenYen

26.11

―

31.51

―

Three months ended
June 30, 2020Three months ended
June 30, 2019(2) Consolidated Financial Position
Total assets

Million yen

Net assets

Equity ratio

Million yen%638

(17.8)

775

10.8

Net assets per share

Million yen%

Yen

As of June 30, 2020
48,50533,824As of March 31,
48,97833,1592020(Reference) Equity: As of June 30, 2020: ¥33,487 million
As of March 31, 2020: ¥32,814 million

69.0

1,370.75

67.0

1,342.50

2. Dividends
Annual dividends
3rdYear-end
quarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Yen

Yen

―
――

―

19.00

19.00

――

19.00

19.00

Fiscal year ended March 31, 2020
Fiscal year ending March 31, 2021
Fiscal year ending March 31, 2021
(Forecast)

Total(Note) Revision to the dividend forecast announced most recently: No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020 to March 31, 2021)(% indicates changes from the previous corresponding period.)
Profit attributableEarningsTurnover
Operating income Ordinary income
to owners ofper shareparent company%

Million yen%

Yen

15,000 (12.4)
600 (35.5)
1,000 (39.7)
First half
34,000 (3.0)
1,700 (6.1)
2,450 (7.3)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen%

Million yen%

Million yen

800
1,800(38.1)(14.5)

32.73
73.64

* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No
Newly included: ― (Company name)
Excluded: ― (Company name)(2) Application of accounting procedures specific to preparation of consolidated quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards, etc.: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common stock)1) Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2020: 29,347,500 shares
As of March 31, 2020: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of June 30, 2020: 4,917,717 shares
As of March 31, 2020: 4,904,971 shares
3) Average number of shares during the period
Three months ended June 30, 2020: 24,438,280 shares
Three months ended June 30, 2019: 24,627,417 shares* The quarterly financial results are not subject to quarterly review procedures by certified public accountants orauditing corporations.
* Explanation of the proper use of financial results forecast and other note
The financial results forecast and other forward-looking statements contained in these materials are based on
information available to the Company and on certain assumptions deemed to be reasonable as of the date of publicationof this document. They are not intended as a commitment by the Company that these results will be achieved. Actualresults may differ considerably as a result of numerous factors. For the assumptions used in the financial results
forecast and precautionary notes on its use, please refer to “1. Qualitative Information on Quarterly Financial Results
for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other Forward-lookingInformation” on page 2 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

Table of Contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review ....................... 2(1) Explanation of Operating Results .................................................................................................... 2(2) Explanation of Financial Position ................................................................................................... 2(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information 2
2. Consolidated Quarterly Financial Statements and Important Notes...................................................... 3(1) Consolidated Quarterly Balance Sheets .......................................................................................... 3(2) Consolidated Quarterly Statements of Income and Comprehensive Income .................................. 5(3) Notes to the Consolidated Quarterly Financial Statements ............................................................. 7(Notes on going concern assumption) ............................................................................................. 7(Notes in the case of significant changes in shareholders’ equity) .................................................. 7(Segment information, etc.) ............................................................................................................ 71

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months ended June 30, 2020, with the end of the spread of the novel coronavirus still not insight, the sense of uncertainty over the world economy continued. Regarding the Japanese economy, by taking
measures from around June to prevent the spread of the virus, the government has gradually boosted social andeconomic activities. However, since infections are increasing mainly in urban areas, the uncertain outlook on theeconomy is expected to continue.
In terms of market trends affecting the Group, demand for Hume pipes in the sewerage-related business anddemand for concrete pile products in the foundations business remained at roughly the same levels as in theprevious fiscal year.
Under such business conditions, the Group worked diligently on three basic strategies—Strategy for theGroup’s growth, Strategy to improve competitiveness, and Strategy to enhance the management foundation—topursue stable profits and sustainable growth, which are the key objectives of the basic policy in Evolution All
Japan II (fiscal 2018 to 2020), the Group’s three-year medium-term management plan.
In the three months ended June 30, 2020, orders received totaled ¥7,647 million (down 0.3% year on year),and turnover amounted to ¥7,500 million (down 2.4% year on year).
As for profit and loss, operating income was ¥476 million (up 9.3% year on year); ordinary income was ¥812
million (down 15.3% year on year), mainly because of equity in earnings of affiliates and dividend income; andprofit attributable to owners of parent was ¥638 million (down 17.8% year on year).

(2) Explanation of Financial Position
Total assets as of June 30, 2020, decreased ¥472 million from the end of the previous consolidated fiscal year,
reaching ¥48,505 million. This was mainly because, while cash and deposits increased ¥454 million under current
assets and investment securities increased ¥628 million under non-current assets, notes and accounts receivable– trade decreased ¥1,754 million under current assets.
In addition, under liabilities, total liabilities decreased ¥1,137 million from the end of the previous
consolidated fiscal year to ¥14,681 million. This was mainly because, under current liabilities, notes and accounts
payable – trade decreased ¥1,285 million.
Under net assets, total net assets increased ¥664 million from the end of the previous consolidated fiscal year,to ¥33,824 million. This was mainly because, under retained earnings, while profit attributable to owners ofparent company increased ¥638 million, there was a decrease of ¥479 million for cash dividends paid; valuationdifference on available-for-sale securities increased ¥275 million; and remeasurements of defined benefit
increased ¥214 million.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the results forecasts pertaining to the fiscal year ending March 31, 2021, there has been no change
to the first-half and full-year results forecasts published in the “Consolidated Financial Results for the Fiscal
Year Ended March 31, 2020 [Japanese GAAP],” dated May 20, 2020.

2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

2. Consolidated Quarterly Financial Statements and Important Notes(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Other
Provision for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Provision for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Provision for directors’ retirement benefits
Provision for environmental measures
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

3

As of June 30, 2020

10,376,529
11,887,000
2,433,113
519,544
169,935(16,498)
25,369,624

10,830,893
10,132,450
2,625,004
473,266
140,584(13,530)
24,188,669

4,047,116
3,572,904
1,645,389
9,265,410
119,910

3,983,939
3,569,397
1,684,607
9,237,943
197,24413,973,557
351,286(100,931)
14,223,911
23,609,232
48,978,857

14,602,034
380,899(100,931)
14,882,003
24,317,191
48,505,860

10,130,996
944,469
260,525
176,906
784,145
12,297,043

8,845,665
935,897
163,892―
1,226,521
11,171,976

17,2171,514
2,744,509
758,878
3,522,119
15,819,162

14,9071,514
2,463,975
1,029,205
3,509,603
14,681,579

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

(Thousand yen)
As of March 31, 2020Net assets
Shareholders’ equity
Share capital
Share premium
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements of defined benefit
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

4

As of June 30, 2020

5,251,400
4,688,447
24,715,817(2,073,120)
32,582,545

5,251,400
4,688,456
24,874,551(2,082,294)
32,732,113

240,023
227,280
ሺ235,658)231,646
345,503
33,159,694
48,978,857

515,241
261,134
ሺ21,466)
754,909337,257
33,824,280
48,505,860

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Three Months Ended June 30(Thousand yen)
For the three months ended
June 30, 2019
TurnoverCost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of income of associates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
State subsidy
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Total extraordinary losses
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent company

5For the three months ended
June 30, 2020

7,687,762
6,241,011
1,446,751
1,010,987
435,764

7,500,088
6,095,284
1,404,804
928,608
476,195

509
57,968424,915
13,01439,001
535,410360
83,293
294,456―
44,260422,370

7,415
―
4,509
11,925959,248

4,064
71,676
10,19885,939812,627

1,440
1,440

1,440
1,440

―
―
960,688
105,925
76,809182,735
777,953
2,025
775,927940
940
813,127
147,997
44,787
192,785
620,342(17,838)
638,180

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

Consolidated Quarterly Statements of Comprehensive Income
Three Months Ended June 30(Thousand yen)
For the three months ended
June 30, 2019

For the three months ended
June 30, 2020

777,953

620,342(85,016)(16,671)
11,239(18,996)(109,445)
668,507283,218
45,635
214,625(20,216)
523,262
1,143,605

666,481

1,161,443

2,025(17,838)

Profit after income taxes
Other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchangeRemeasurements of defined benefit
Share of other comprehensive income of associates
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
company
Comprehensive income (loss) attributable to noncontrolling interests

6

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

(3) Notes to the Consolidated Quarterly Financial Statements(Notes on going concern assumption)
No relevant items.
(Notes in the case of significant changes in shareholders’ equity)
No relevant items.
(Segment information, etc.)
I. For the three months ended June, 2019 (April 1, 2019 to June 30, 2019)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)

Adjustments(Note 2)

Amountrecorded on
theConsolidated
QuarterlyStatements ofIncome(Note 3)

7,687,762―

7,687,762―

11,492(11,492)―

36,5396,745

7,699,255
807,712(11,492)(371,948)

7,687,762
435,764

Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment incomeFoundationsSeweragerelated

Solar Power
Generationand Real
Estate5,059,514

2,239,119

1,607
5,061,121
245,512

Total

Others(Note 1)

Total

352,589

7,651,223

36,539―9,884

11,492

2,239,119
338,195

362,474
217,259

7,662,715
800,967(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the sport facility
management business and the rental business.
2. An adjustment to segment income of ¥ (371,948) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportable segments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated QuarterlyStatements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.

7

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Three Months Ended June 30, 2020

II. For the three months ended June 30, 2020 (April 1, 2020 to June 30, 2020)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)
Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Foundations

Seweragerelated

Solar Power
Generationand Real
Estate4,998,205

2,142,432

1,529
4,999,735
247,732

Amountrecorded on
theAdjustments Consolidated(Note 2)
QuarterlyStatements ofIncome(Note 3)

TotalOthers(Note 1)

Total

347,373

7,488,011

12,0777,500,088―

7,500,088

―

9,586

11,115―

11,115(11,115)―

2,142,432
377,010

356,959
198,7707,499,126
823,514

12,0778,990

7,511,204
832,505(11,115)(356,309)

7,500,088
476,195(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥ (356,309) thousand is corporate expenses not allocated to reportablesegments. Corporate expenses are general and administrative expenses not attributable to reportable segments.
3. Total segment income with adjustments corresponds to operating income on the Consolidated Quarterly
Statements of Income.

2. Information on impairment loss or goodwill for non-current assets by reportable segment
No relevant items.

8