Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2012
(Nine Months Ended December 31, 2011) <under Japanese GAAP> (Consolidated)
February 8, 2012
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 : Yasuhiro Kurauchi, Finance and Administration, General Manager (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report : February 10, 2012
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 December 31, 2011 (April 1, 2011 - December 31, 2011)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Nine months ended
Dec. 31, 2011

Operating income

Ordinary income

Millions of yen
13,341

-(79)

-(86)

-102--------

Nine months endedDec. 31, 2010
Note: Comprehensive income (Millions of yen):％

Net income％Millions of yen

Millions of yen

Dec. 31, 2011: 82 ( -%)Net income pershare％

Millions of yen

Dec. 31, 2010: - (-%)

Diluted net incomeper share
Yen

Nine months ended
Dec. 31, 2011

％

Yen

5.45

-

Nine months ended
Dec. 31, 2010
Note: Nikko Company has changed its fiscal year-end from October 31 to March 31 resulting in an irregular 5-month period forFiscal 2011(from November 1, 2010 to March 31, 2011), as a result, a quarterly consolidated financial report for the Third Quarter ofFiscal 2011 has not been prepared. Therefore consolidated operating results for Third Quarter of Fiscal 2011 and comparisons with thesame period of the previous period are not provided.
(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of Dec. 31, 2011

13,307

3,463

26.0

184.88

As of Mar. 31, 201113,288

3,381

25.4

180.49Reference:

Shareholders' equity (Millions of yen):Dec. 31, 2011: 3,463

Mar. 31, 2011: 3,381

2. Dividends(Record date)1Q-endYenYear ended Mar. 31, 2011
Year ending Mar. 31, 2012
Year ending Mar. 31, 2012
(forecast)
Notes: Revision of dividend forecast during the period: None

Dividend per share
2Q-end3Q-end
Yen
Yen
0.00
-

1Year-end

Annual
Yen

Yen

0.00

0.00

0.00

0.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2012 (April 1, 2011 - March 31, 2012)(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%

19,500-100-Millions of yen
100%

Millions of yen-200%

Yen-

10.68

Notes: Revision of projected consolidated performance during the period: None
The fiscal period ended March 31, 2011 was an irregular 5-month period (from November 1 to October 31) resulting from the change infiscal year end and therefore comparisons with the previous period are not provided.
.
4. Other(1) Changes in major subsidiaries during the period: None
New: — companies (Company name:Eliminated: — companies (Company name:))(2) Application of special accounting methods for quarterly consolidated financial statements: Yes
Note: Application of simplified methods and special accounting methods for presenting quarterly consolidated financial statements(3) Changes in accounting policies, changes in accounting estimates, or restatement
1) Changes in accounting policies due to changes in consolidated accounting methods: None
2) Changes other than 1) above: None
3) Changes in accounting estimates: None
4) Restatement: None
(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Dec. 31, 2011:
19,572,000 sharesMar. 31, 2011:
2) Number of treasury stock at the end of the period
Dec. 31, 2011:
837,887 sharesMar. 31, 2011:
3) Average number of shares issued during the period (cumulative; consolidated)
Nine months ended Dec. 31, 2011: 18,735,187 shares

19,572,000 shares
835,419 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 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1. Other Information(1) Overview of Changes in Consolidated Subsidiaries
No reportable information(2) Overview of Adoption of 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, accounting estimates and retrospective restatement for consolidated
No reportable 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 assets
Other
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
OtherAllowance 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
Income taxes payable
Provision for bonuses
Provision for product warranties
OtherTotal 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
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4FY03/2011(As of Mar.31,2011)(Millions of yen)
Third quarter of FY03/2012(As of Dec. 31,2011)

1,468
3,060
1,959
857
218
352
2
132(158)
7,893

1,200
2,862
2,283
731
603
367
1
139(167)
8,023

6,750
(4,426)
2,324
1,261
6,900
(6,089)
810
4,395
319

6,796
(4,562)
2,234
1,261
7,036
(6,211)
824
4,319
266

542
525
(388)
679
5,395
13,288

566
521
(388)
698
5,284
13,307

3,364
793
162
30
373
103
1,385
6,212

3,362
1,259
270
41
47
103
1,501
6,586

1,720
1,414
99
459
3,694
9,907

1,557
1,216
100
383
3,258
9,8443,200
2,066(1,231)
(334)
3,701

3,200
1,321(383)
(334)
3,802

(191)
(128)
(319)
3,381
13,288(202)
(136)
(339)
3,463
13,307

(2) Consolidated quarterly statements of income
and consolidated quarterly statements of comprehensive income
Consolidated quarterly statements of income(Millions of yen)
Third quarter of FY03/2012(Apr.1,2011-Dec.31,2011)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)

13,341
9,415
3,926
4,006
(79)

Non-operating income
Interest income
Rent income
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income (loss)

394079(86)Extraordinary Income
Gain on sales of noncurrent assets
Gain on abolishment of retirement benefit plan
Other
Total extraordinary Income

0283
0284

Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Business structure improvement expenses
Other
Total extraordinary losses
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Income (loss) before minolity inretests
Net Income (loss)

741
11162
13532
133102102

01854735Consolidated quarterly statements of comprehensive income(Millions of yen)
Third quarter of FY03/2012(Apr.1,2011-Dec.31,2011)
Income(loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Other comprehensive income
Comprehensive income

102(11)
(8)
(19)
82

Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

682―(3) Going Concern Assumption
No reportable information.
(4) Segment Information[Segment Information]
Third Quarter of FY03/2012 (Apr. 1, 2011 –Dec. 31, 2011)
1. Information related to net sales and profit or loss for each reportable segment

Housing &Environmental
Equipment

Tabletop

ElectroCeramics

Other(Note 1)(Millions of yen, rounded down)Amounts
shown onquarterly
Segment
Adjustment
consolidated
total(Note2)statements ofincome

Net sales
Sales to Outside
7,899
3,832
1,562
47
13,341
13,341
Customers
Intersegment sales orTransfers
Total
7,899
3,832
1,562
47
13,341
13,341
Segment profit (loss)(Operating income (loss))445
142(221)(15)350(429)(79)
Notes: 1. The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Segment income adjustment of 429 million yen consists of expenses, such as general administrative expenses, andresearch and development costs that do not belong to the reportable segments.
3. The company has changed its fiscal year-end resulting in an irregular 5-month period for Fiscal 2011 and as a result aquarterly consolidated financial report for the Third Quarter of Fiscal 2011 has not been prepared.
2. Information regarding impairment loss on fixed assets and goodwill by reportable segment
During the subject nine-month period, impairment loss amounted to 41 million yen in the Electro-Ceramics Division.
(5) Significant changes in Shareholder’s Equity
No reportable information

7

3. Supplementary Information(1) Sales by Segment

Industry Segment(Millions of yen, rounded down)Same period last year
(Apr. 1, 2010 – Dec. 31, 2010)

Third quarter of FY03/2012(Apr. 1, 2011 – Dec. 31, 2011)

FY03/2011(Nov. 1, 2010 - Mar. 31, 2011)

Net Sales

Percent ofNet Sales

Net Sales

Percent of
Net Sales

Net Sales

Percent of
Net Sales

Housing & Environmental
Equipment

7,446

53.3%

7,899

59.2%

4,390

56.6%

Tabletop

4,373

31.3

3,832

28.7

2,247

29.0

Electro- Ceramics

2,106

15.1

1,562

11.7

1,085

14.0

Other

35

0.3

47

0.4

310.4

Total

13,962100.0

13,341

100.0

7,754

100.0

Notes:
1. Amounts are converted to sales prices.
2. Amounts do not include consumption taxes.
3. Due to the change of fiscal year-end, a quarterly consolidated financial report for the Third Quarter of Fiscal 2011 has notbeen prepared. However, for reference purposes, comparisons have been made with the same period of the previous year.
Further, the fiscal 2011 was a five-month reporting period.
4. 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)

Industry Segment
Housing & Environmental
Equipment

Same period last year
(Apr. 1, 2010 – Dec. 31, 2010)

Third quarter of FY03/2012(Apr. 1, 2011 – Dec. 31, 2011)

FY03/2011(Nov. 1, 2010 - Mar. 31, 2011)

Overseas
Sales

Overseas Sales
Ratio

OverseasSales

Overseas Sales
Ratio

Overseas
Sales

20.0%

--%

-Overseas Sales
Ratio
-%

Tabletop

1,297

29.7

1,010

26.4

685

30.5

Electro- Ceramics

572

27.2

438

28.0

306

28.3

Total

1,872

13.4

1,448

10.9

992

12.88