Consolidated Quarterly Financial Results
for the Nine Months Ended December 31, 2021
[Japanese GAAP]
February 14, 2022
Company name: NIPPON HUME CORPORATION
Stock exchange listing: Tokyo Stock Exchange
Securities code: 5262
URL: https://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: February 14, 2022
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 Nine Months Ended December 31, 2021
(April 1, 2021 to December 31, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toTurnoverOperating income
Ordinary income
owners of parent
company
Million yen%

Million yen%

Million yen%

Million yen

Nine months ended
21,590(4.9)
986 (23.6)
1,833 (13.4)
1,514
December 31, 2021
Nine months ended
22,707(11.2)
1,291
(1.9)
2,118
(1.0)
1,585
December 31, 2020
(Note) Comprehensive income: Nine months ended December 31, 2021: ¥1,237 million [-47.2%]
Nine months ended December 31, 2020: ¥2,341 million [21.4%]

Nine months ended
December 31, 2021
Nine months ended
December 31, 2020

Earnings per share

Diluted earnings per
share

Yen

Yen

62.28

―

64.88

―

(2) Consolidated Financial Position
Total assets
Million yen

Net assets
Million yen

As of December 31,
51,01636,4752021
As of March 31,
50,41836,0202021(Reference) Equity: As of December 31, 2021: ¥36,156 million
As of March 31, 2021: ¥35,691 million

Equity ratio

%

(4.5)
(7.2)

Net assets per share
%

Yen

70.9

1,491.92

70.8

1,461.11

2. Dividends
Annual dividends
3rdYear-endquarter-end

1stquarter-end

2ndquarter-end

Yen

Yen

Yen

Fiscal year ended March 31, 2021

―

―

―

Fiscal year ending March 31, 2022

―

―

―

Yen

Fiscal year ending March 31, 2022
(Forecast)

Total
Yen

25.00

25.00

20.00

20.00

(Note) Revision to the dividend forecast announced most recently: No(Note) Breakdown of dividends for the fiscal year ended March 31, 2021: Ordinary dividend: 20.00 yen
Commemorative dividend: 5.00 yen
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021 to March 31, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable
Earnings
TurnoverOperating income Ordinary income
to owners ofper share
parent company%

Million yen%

Yen

31,000
1.8
1,750
1.2
2,650 (2.3)
Full year(Note) Revision to the financial results forecast announced most recently: No

Million yen% Million yen%

Million yen

2,000

(6.1)

81.87

* 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.: Yes
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 December 31, 2021: 29,347,500 shares
As of March 31, 2021: 29,347,500 shares2) Total number of treasury shares at the end of the period
As of December 31, 2021: 5,112,959 shares
As of March 31, 2021: 4,919,851 shares
3) Average number of shares during the period
Nine months ended December 31, 2021: 24,317,182 shares
Nine months ended December 31, 2020: 24,431,993 shares* These quarterly financial results are not subject to quarterly review procedures by certified public accountants or
auditing corporations.
* Explanation of the proper use of financial results forecast and other notes
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. Actual
results 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-looking
Information” on page 3 of the attachment.

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

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 3
2. Consolidated Quarterly Financial Statements and Important Notes...................................................... 4(1) Consolidated Quarterly Balance Sheets .......................................................................................... 4(2) Consolidated Quarterly Statements of Income and Comprehensive Income .................................. 6(3) Notes to the Consolidated Quarterly Financial Statements ............................................................. 8(Notes on going concern assumption) ............................................................................................. 8(Notes in the case of significant changes in shareholders’ equity) .................................................. 8(Changes in accounting policies) ...................................................................................................... 8(Segment information, etc.) ............................................................................................................. 91

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

1. Qualitative Information on Quarterly Financial Results for the Period under Review(1) Explanation of Operating Results
Looking at the world economy during the nine months ended December 31, 2021, signs of the resumption of
economic activity were observed notably in the United States and Europe. However, expectations of a recovery
stalled with the surge in raw fuel prices, a resurgence of novel coronavirus cases, and other factors. In the Japanese
economy, although the situation such as progress in novel coronavirus vaccination programs and lifting of thestate of emergency raised hopes of recovery signals, the outlook remained uncertain due to concerns of aresurgence of novel coronavirus cases and the impact on economic activity, the emergence of a new variant, andother factors.
With regard to the business environment in which the Group operates, public works investment has been solid
since the implementation by the government of the “Five-Year Acceleration Plan for Disaster Prevention, Disaster
Mitigation, and Building National Resilience.” Private-sector construction investment showed signs of picking
up, but the order environment remained challenging.
Under these conditions, nationwide demand for concrete pile products in the foundations business was flat
year on year, but competition for new orders remains intense. The sewerage-related business recorded solid
performance as a result of enhanced efforts in winning orders for high value-added products geared towarddisaster prevention, disaster mitigation, and national resilience measures.
In the nine months ended December 31, 2021, consolidated turnover amounted to ¥21,590 million (down
4.9% year on year), operating income was ¥986 million (down 23.6%), ordinary income was ¥1,833 million(down 13.4%), and profit attributable to owners of parent was ¥1,514 million (down 4.5%). As a result of theapplication of the Accounting Standard for Revenue Recognition, etc., both turnover and cost of sales were ¥421
million lower than when calculated using the previous method, mainly due to the effect of recognizing a net
amount of turnover from transactions performed as an agent.
The business environment in which the Group operates is projected to remain challenging given rising pricesof raw materials and raw fuels, combined with severe competition for new orders in the foundations business.
The Group will continue its unwavering efforts to further enhance production efficiency and reduce costs, andwill work to stabilize and enhance profits by leveraging the features of its business portfolio to strengthen andpromote the creation of demand for its high value-added products.
The Group is diligently promoting its “21-23 Plan” medium-term management plan. In the third quarter, itpushed forward with research and development of environmentally friendly products toward the realization of adecarbonized society and carbon neutrality, which are keys to its growth strategy, and also proceeded to enrich
the lineup of high value-added products for rainwater management in the face of climate change. In digitalization
initiatives, the Group worked on further enhancement of the functionality of the “Pile-ViMSys” next-generation
DX construction management system as well as development of an operational system for automating andstreamlining the processes. Additionally, the Group is promoting basic research on manufacturing technology
aimed at cost reduction and increased efficiency. With the government positioning “concrete and cement
industries as critical fields for carbon recycling,” the Group will continue to pursue its medium- to long-term
growth strategy under the theme of “green and digital.”(2) Explanation of Financial Position
Total assets as of December 31, 2021, increased ¥597 million from the end of the previous consolidated fiscal
year, to ¥51,016 million. This was mainly because, under current assets, cash and deposits decreased ¥1,322
million and under non-current assets, investment securities decreased ¥276 million, while notes and accounts
receivable - trade and contract assets increased ¥1,720 million, and merchandise and finished goods increased¥398 million.
In addition, under liabilities, total liabilities increased ¥143 million from the end of the previous consolidated
fiscal year, to ¥14,541 million. This was mainly because, under current liabilities, provision for bonuses decreased¥172 million and income taxes payable decreased ¥140 million, while notes and accounts payable - trade
increased ¥442 million.
2

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

Under net assets, total net assets increased ¥454 million from the end of the previous consolidated fiscal year,to ¥36,475 million. This was mainly because, under retained earnings, while profit attributable to owners ofparent company increased ¥1,514 million, there was a decrease of ¥633 million for cash dividends paid, andvaluation difference on available-for-sale securities decreased ¥263 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, 2022, there has been no change
to the full-year results forecast published in the “Consolidated Financial Results for the Fiscal Year Ended March
31, 2021 [Japanese GAAP]” dated May 13, 2021.

3

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

2. Consolidated Quarterly Financial Statements and Important Notes(1) Consolidated Quarterly Balance Sheets(Thousand yen)
As of March 31, 2021
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable trade and contract
assetsMerchandise 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
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Provision for share-based remuneration for directors
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities

4

As of December 31, 2021

12,328,246
8,770,485

11,005,757――

10,490,604

2,564,269
509,182
206,376(11,769)
24,366,791

2,962,340
712,620
221,790(15,221)
25,377,892

4,134,471
3,610,229
1,583,297
9,327,999
188,238

3,949,546
3,606,301
1,721,374
9,277,222
154,705

16,200,362
367,731(32,718)
16,535,375
26,051,613
50,418,405

15,924,194
314,611(32,250)
16,206,556
25,638,483
51,016,376

8,113,087
928,055
327,912
172,900―
1,065,399
10,607,354

8,555,801
974,383
187,362―
2,163
1,077,824
10,797,535

16,50014,9072,517,770
1,241,223
3,790,401
14,397,755

22,146
14,9072,535,589
1,170,868
3,743,511
14,541,047

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

(Thousand yen)
As of March 31, 2021
Net 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

5

As of December 31, 2021

5,251,400
4,773,375
26,366,080(2,163,815)
34,227,040

5,251,400
4,773,375
27,246,889(2,306,283)
34,965,381

1,213,840
220,761
29,8691,464,471
329,137
36,020,649
50,418,405

950,235
193,415
47,0581,190,709
319,237
36,475,329
51,016,376

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

(2) Consolidated Quarterly Statements of Income and Comprehensive Income
Consolidated Quarterly Statements of Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 2020
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
Gain on sales of fixed assets
Gain on sale of investment securities
State subsidy
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on valuation of investment securities
Structure reform expenses
Total extraordinary losses
Profit before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Profit after income taxes
Loss attributable to non-controlling interests
Profit attributable to owners of parent company

6

For the nine months ended
December 31, 2021

22,707,535
18,602,806
4,104,729
2,813,693
1,291,035

21,590,833
17,580,949
4,009,883
3,023,187
986,695

544
162,888599,952―
137,448
900,833

268
194,042570,031
23,384
84,174
871,901

10,63638,431
24,19273,2602,118,609

9,370―
15,477
24,847
1,833,749

―
―
1,440
1,440

27,527108,066―
135,593940
17,18139,45357,5742,062,474
455,127
37,141
492,268
1,570,205(15,046)
1,585,252――――
1,969,342
425,049
33,077458,126
1,511,216(3,375)
1,514,591

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

Consolidated Quarterly Statements of Comprehensive Income
Nine Months Ended December 31(Thousand yen)
For the nine months ended
December 31, 2020
Profit after income taxes
Other comprehensive income
Valuation difference on available-for-sale securities
Difference in foreign exchange
Remeasurements 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

7

For the nine months ended
December 31, 2021

1,570,205

1,511,216

510,779
5,376
233,822
21,623771,6022,341,808(244,930)(22,007)
17,433(24,257)(273,762)
1,237,453

2,356,855

1,240,829(15,046)(3,375)NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

(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.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Boardof Japan (ASBJ) Statement No. 29, March 31, 2020; hereinafter the “Revenue Recognition Accounting Standard”),
etc. from the beginning of the three months ended June 30, 2021. Under the Revenue Recognition AccountingStandard, the Company recognizes revenue at the time when control over the promised goods or services aretransferred to the customer, in an amount equal to the consideration expected to be received for the said goods orservices. Previously, the percentage-of-completion method was used for work contracts for which the outcome of a
portion of a work was deemed certain, and the completed-contract method was used for work contracts that did notsatisfy this requirement. From this fiscal year onward, revenue is recognized over a certain period of time as
performance obligations are satisfied. Moreover, in cases where the duration of a work is extremely short, revenue
is recognized at the time when a work that fully satisfies the performance obligations has been completed. The
input method (proportion of actual cost to estimated total cost) is used to estimate the rate of progress in fulfilling
performance obligations.
For transactions where the Company’s role in the provision of products to the customer is that of an agent, theCompany previously recognized the gross amount of the consideration received from the customer as revenue. The
Company now recognizes as revenue the net amount received from the customer after deducting the amount paid
to the product’s supplier.
In applying the Revenue Recognition Accounting Standard, etc., the Company has followed the transitional
treatment stipulated under the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard, adjustingretained earnings at the start of the three months ended June 30, 2021, to account for the cumulative effect ofretrospective application of the new accounting policy prior to that time, and applying the new accounting policy
from the adjusted balance.
As a result, for the nine months ended December 31, 2021, both turnover and cost of sales were ¥421 million
lower than when calculated using the previous method. There was no effect on the amount of retained earnings at
the start of the nine months ended December 31, 2021.
Pursuant to the application of Revenue Recognition Accounting Standard, etc., notes and accounts receivable –trade, which was presented in current assets on the consolidated balance sheets for the previous fiscal year, wasincluded in notes and accounts receivable – trade and contract assets for the three months ended June 30, 2021. In
accordance with the transitional treatment prescribed under Paragraph 89-2 of the Revenue Recognition
Accounting Standard, the Company has not reclassified items for the previous fiscal year based on the newpresentation method.
8

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July4, 2019; hereinafter the “Fair Value Measurement Accounting Standard”), etc. from the start of the three months
ended June 30, 2021. The Company has applied the new accounting policy prospectively from the start of the threemonths ended June 30, 2021, in accordance with the transitional treatment prescribed under Paragraph 19 of the
Fair Value Measurement Accounting Standard and Paragraph 44-2 of “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no effect on the consolidated quarterly financial
statements.

(Segment information, etc.)
I. For the nine months ended December 31, 2020 (April 1, 2020 to December 31, 2020)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)

Adjustments(Note 2)

Amountrecorded ontheConsolidated
QuarterlyStatements ofIncome(Note 3)22,707,535―

22,707,535―

34,540(34,540)―

38,68729,88822,742,075
2,383,502(34,540)(1,092,466)

22,707,535
1,291,035

Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate

Total

Others(Note 1)

Total

13,619,466

7,965,214

1,084,167

22,668,847

38,687

5,409―

29,13034,54013,624,875
634,570

7,965,214
1,128,806

1,113,298
590,237

22,703,387
2,353,614(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(1,092,466) 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.

9

NIPPON HUME CORPORATION (5262), Consolidated Quarterly Financial Results for the Nine Months Ended December 31, 2021

II. For the nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021)
1. Information on turnover and income (loss) by reportable segment(Thousand yen)

Adjustments(Note 2)

Amountrecorded ontheConsolidated
QuarterlyStatements ofIncome(Note 3)

21,590,833―

21,590,833―

32,651(32,651)―

43,52134,80821,623,485
2,132,856(32,651)(1,146,160)

21,590,833
986,695

Reportable segment

TurnoverTurnover toexternal customers
Inter-segment
turnover ortransfers
Total
Segment income

Foundations

Seweragerelated

Solar Power
Generation
and Real
Estate

Total

Others(Note 1)

Total

12,594,300

7,873,709

1,079,302

21,547,312

43,521

4,220―

28,43032,651

12,598,521
155,508

7,873,709
1,342,268

1,107,733
600,270

21,579,963
2,098,047(Notes) 1. The “Others” segment includes businesses not included in reportable segments, such as the rental business.
2. An adjustment to segment income of ¥(1,146,160) 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.
3. Changes in reportable segments, etc.
As described in Changes in accounting policies, the Company has applied the Revenue Recognition AccountingStandard, etc. from the beginning of the three months ended June 30, 2021. Pursuant to the change in accounting
treatment for revenue recognition, the Company has likewise changed the methods used to calculate income or loss
for its business segments.
As a result of this change, for the nine months ended December 31, 2021, the turnover of the foundations
business and the sewerage-related business was ¥26 million and ¥395 million lower, respectively, than whencalculated using the previous method.

10