Financial Results for First Quarter of Fiscal Year Ending March 31, 2024
[Japanese GAAP] (Consolidated Data)
August 10, 2023
Company Name: Nikko Co., Ltd.
Stock Code:

Stock Exchange Listing: Tokyo Stock Exchange

6306

URL http://www. nikko-net.co.jp

Representative: Representative Director and President
Director and Vice President/General Manager of
For inquiries:
Administrative Division

Masaru Tsuji

Scheduled date for filing the quarterly report: August 10, 2023

Scheduled date for cash dividends: –Quarterly earnings supplementary explanatory materials:

Yes

Quarterly financial results briefing session:

Yes (for institutional investors, analysts, andnewspaper reporters)

Hiroshi Fujii

Tel: +81-78-947-3141(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for First Quarter of Fiscal Year Ending March 31, 2024 (April 1, 2023 - June 30, 2023)(1) Consolidated Operating Results (cumulative)(% represents year-on-year change rate from the same period)
Quarterly net income
Net sales
Operating income Ordinary income attributable to ownersof parent
million yen% million yen% million yen% million yen%Three months ended June 30, 2023
8,446 (11.1)(99)–67 (79.4)
27(80.5)
Three months ended June 30, 2022
9,504
7.8
183 (51.1)
326 (37.2)
140(62.9)
Note: Comprehensive income:Three months ended June 30, 2023
Three months ended June 30, 2022

Three months ended June 30, 2023
Three months ended June 30, 2022

Quarterly net income
per share
yen
0.71
3.67

736 million yen (196.2%)
248 million yen (-27.6%)

Diluted quarterly net
income per shareyen––(2) Consolidated Financial Position

As of June 30, 2023
As of March 31, 2023(Reference) Capital:

Total assets
million yen
52,812
52,127

Net assets
million yen
31,766
31,604As of June 30, 2023

31,827 million yen

As of March 31, 2023

31,644 million yen

Equity ratio%
60.3
60.7

Net assets per shareyen
831.51826.73

2. Dividends
End of 1Q
yen––

End of 2Q
yen
15.00

Annual dividends
End of 3Q
yen–

Fiscal year ended March 31, 2023
Fiscal year ending March 31, 2024
Fiscal year ending March 31, 2024
15.00–(forecasts)(Note) Revision of previously announced dividend targets during this reporting period: None-1-Year-end
yen
15.00
15.00

Totalyen
30.00
30.00

3. Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)(Percentages indicate year-on-year changes from full fiscal year and first half of theprevious fiscal year, respectively)
Net income attributableto owners of parent
million yen% million yen% million yen% million yen%
2Q (first half)
17,000 (9.4)
50 (87.5)
190 (65.4)
60(76.9)
Full year
44,000 10.9
1,900
84.8
1,90051.31,200
17.6(Note) Revision of previously announced earnings forecasts during this reporting period: YesNet sales

Operating income

Ordinary income

Net income
per shareyen
1.57
31.36

*Notes(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve
changes in the scope of consolidation): None
(2) Use of special accounting methods for preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatements(i) Changes in accounting policy arising from revision of accounting standards, etc.: None(ii) Changes in accounting policy other than those noted in (i) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: NoneNote: Please refer to (Changes in Accounting Policy) on page 7 in the Accompanying Material for details.
(4) Shares issued (common stock)
Number of shares issued at end ofperiod (including treasury stock)

As of June 30, 2023

40,000,000
As of March 31, 2023
shares

40,000,000
shares(ii) Number of shares held in treasury atend of period

As of June 30, 2023

1,723,705
As of March 31, 2023
shares1,723,305
shares(iii) Average number of shares outstanding Three months ended
during the period (quarter-to-date)June 30, 2023

38,276,428 Three months ended
shares June 30, 2022

38,225,285
shares(i)*

This quarterly report is not subject to quarterly review procedures by certified public accountants or an auditing firm.

*

Explanation of the appropriate use of earnings forecasts, and other special notes(Cautionary statement with respect to forward-looking statements)
Any forecasts and forward-looking statements given herein are based on information available as of this report’s
publication and on certain assumptions that are deemed reasonable and these forecasts are not guarantees of futureperformance. Actual results may differ significantly from forecasts due to various factors. For the assumptions
underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to “1. QualitativeInformation on Quarterly Results: (3) Explanation About Forward-Looking Statements, Including Forecast ofConsolidated Financial Results” on page 2 in the accompanying materials.
(How to obtain quarterly earnings supplementary explanatory materials)
The Company is scheduled to post the quarterly earnings supplementary explanatory materials on its website onThursday, August 10, 2023.
The Company has scheduled a financial results briefing session (live streaming) for securities analysts on Tuesday,
September 5, 2023.

-2-

Accompanying Material – Table of Contents
1. Qualitative Information on Quarterly Results ........................................................................................................

2(1) Explanation About Operating Results ..............................................................................................................

2(2) Explanation About Financial Position...............................................................................................................

2(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results........

2

2. Quarterly Consolidated Financial Statements and Notes .....................................................................................

3(1) Quarterly Consolidated Balance Sheet............................................................................................................
(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
Income .............................................................................................................................................................
Quarterly Consolidated Statement of Income

3Three Months Ended June 30, 2023 ...........................................................................................................

55Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2023 ...........................................................................................................

6(3) Notes to Quarterly Consolidated Financial Statements ...................................................................................

7(Going Concern Assumption)...........................................................................................................................

7(Notes on Significant Changes in the Amount of Shareholders’ Equity) ..........................................................

7(Changes in Accounting Policy) .......................................................................................................................

7-1-1. Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the three months ended June 30, 2023, the global economy saw continued price increases amidst a mix ofdiscussions supporting continuation of interest rate hikes to counter inflation and concerns over economic
recession resulting from interest rate increases. At the same time, optimism for a soft landing without economic
recession has also been spreading in the market. Turning to Japan, more companies have started raising wages ina situation where rising prices are having significant impact on social life. Partly supported by the full-blown movetowards the post pandemic order and the improvement in supply chains, the Nikkei Stock Average also rose to its
highest level in 33 years since the bursting of the economic bubble, as funds flowed into the Japanese stock
market, which had been lagging behind other markets.
Under such conditions, the investment appetite of road pavement companies, who are the Company’s main
customers, failed to recover sufficiently from the significant decline that was caused by the soaring asphalt prices.
As a result, consolidated net sales of the Nikko Group came to 8,446 million yen in the quarter under review (down
11.1% from the same period a year earlier). In terms of profits, the Group posted consolidated operating loss of 99
million yen (compared with 183 million yen in the same period a year earlier), due to its active investment in humanresources as well as in research and development, in addition to the decline in net sales. Consolidated ordinary
income came to 67 million yen (down 79.4% from the same period a year earlier), and quarterly net income
attributable to owners of parent totaled 27 million yen (down 80.5% from the same period a year earlier).
Results by segment are as follows.
<Asphalt Plant-Related Business>
Net sales of products in Japan increased compared with the previous period. Net sales of the maintenance businessin Japan and overseas declined compared with the previous period. As a result, net sales of the business declined
23.8% from the same period a year earlier to 3,795 million yen. New orders received and order backlog in the period
under review increased compared with a year earlier.
<Concrete Plant-Related Business>
Net sales of the maintenance business in Japan increased from the previous period, but the net sales of products inJapan and overseas declined from the previous period. As a result, net sales of the business declined 2.8% from ayear earlier to 2,313 million yen. New orders received in the period under review declined compared with a yearearlier, while order backlog increased year on year.
<Environment- and Conveyor-Related Business>
Net sales of environmental products and conveyer products increased compared with the same period a year earlier.
As a result, net sales of the business rose 0.5% from a year earlier to 643 million yen. New orders received in theperiod under review increased compared with a year earlier, while order backlog decreased year on year.
<Other Business>
Net sales of the mobile plant business and temporary construction materials increased compared with the same
period a year earlier. As a result, net sales of the business increased 12.7% to 1,693 million yen. New orders received
and order backlog in the period under review increased compared with a year earlier.
(2) Explanation About Financial Position
Total assets at the end of the reporting period totaled 52,812 million yen, increasing 684 million yen from the end of
the previous fiscal year.
Current assets came to 33,209 million yen, declining 513 million yen from the end of the previous fiscal year. Main
factors contributing to the change are decreases of 1,599 million yen in accounts receivable-trade, 721 million yenin notes receivable-trade, and 144 million yen in electronically recorded monetary claims as well as increases of
1,480 million yen in cash and cash equivalents and 1,079 million yen in work in process. Noncurrent assets came
to 19,602 million yen, up 1,198 million yen from the end of the previous consolidated fiscal year. Main factors
contributing to the change are increases of 912 million yen in investment securities and 544 million yen in property,
plant and equipment, and a decrease of 233 million yen in deferred tax assets.
Liabilities totaled 21,045 million yen, up 521 million yen from the end of the previous fiscal year. Main factors
contributing to the change are increases of 736 million yen in long-term loans, 614 million yen in contract liabilities,
and 380 million yen in accounts payable-other as well as decreases of 746 million yen in accounts payable-trade,
261 million yen in provision for bonuses, and 190 million yen in income taxes payable.
Net assets came to 31,766 million yen, up 162 million yen from the end of the previous consolidated fiscal year.
Main factors contributing to the change are an increase of 631 million yen in valuation difference on available-forsale securities and a decline of 546 million yen in retained earnings.
As a result, equity ratio fell to 60.3% from 60.7% at the end of the previous fiscal year.
(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results
See “Notice Regarding Revision to Forecast of Financial Results” issued today (August 10, 2023) for details of theforecasts for second half and full year of the fiscal year ending March 31, 2024.

-2-2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and cash equivalents
Notes receivable-trade
Accounts receivable-trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process
Raw materials and supplies
Other business
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
Buildings and structures (net)Land
Construction in progress
Other (net)Total property, plant and equipment
Intangible assets
Goodwill
Other businessTotal intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other business
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-3-

As of June 30, 2023

10,317
2,357
6,645
2,233
1,794
7,423
1,657
1,294
(1)
33,723

11,798
1,636
5,045
2,088
1,861
8,503
1,621
655
(0)
33,209

5,945
3,878
236
1,779
11,839

5,984
4,040
775
1,583
12,384

130
889
1,020

126868994

3,488
714
981
1,183(130)5,544
18,404
52,1274,4017147481,182(130)6,223
19,602
52,812

(million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Accounts payable-factoring
Short-term loans payable
Income taxes payable
Accounts payable-otherAdvances received
Contract liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other businessTotal current liabilities
Long-term liabilities
Long-term loans payableDeferred tax liabilities
Provision for directors' retirement benefits
Retirement benefit-related liabilities
Other businessTotal 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-salesecurities
Foreign currency translation adjustment
Deferred gains or losses on hedges
Accumulated retirement benefit-related
adjustment
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assetsTotal liabilities and net assets-4-

As of June 30, 2023

3,012
858
2,355
3,312
265
644
17
3,713
417
76
172
492
15,338

2,266
914
2,351
3,315
74
1,025
17
4,328
155
21
68
608
15,147

2,449
235
2,166
333
5,184
20,523

3,185
13
172
2,181
344
5,897
21,045

9,197
7,934
13,628(760)
29,999

9,197
7,934
13,081(760)
29,452

1,177

1,809

582
-649
27

(115)

(112)

1,644

2,374

(40)
31,604
52,127(60)
31,76652,812

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Three Months Ended June 30, 2023)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other businessTotal non-operating income
Non-operating expenses
Interest expenses
Compensation for damage
Other businessTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss due to the spread of COVID-19
Total extraordinary loss
Quarterly income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly net income
Quarterly loss attributable to non-controlling interests
Quarterly net income attributable to owners of parent

Three months ended
June 30, 2022
(from April 1, 2022
to June 30, 2022)
9,504
7,068
2,436
2,252183(million yen)Three months ended
June 30, 2023
(from April 1, 2023
to June 30, 2023)
8,446
6,201
2,244
2,343
(99)

07176
18
167

096
74
35
206

171
524326

24
12340
67

00-2323303
295(114)180
122(17)14067
88(38)
50
17(10)
27-5-(Consolidated Statements of Comprehensive Income)(Three Months Ended June 30, 2023)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Retirement benefit-related adjustment
Total other comprehensive income
Quarterly comprehensive income(Breakdown)
Quarterly comprehensive income attributable toowners of parent
Quarterly comprehensive income attributable tonon-controlling interests

Three months endedJune 30, 2022
(from April 1, 2022
to June 30, 2022)

-6-

122

(million yen)Three months ended
June 30, 2023
(from April 1, 2023
to June 30, 2023)
17(37)

631

160
3
126
248

2757
3719
736

272

756

(23)

(19)

(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
Not applicable(Changes in Accounting Policy)
Not applicable-7-