Financial Results for Third Quarter of Fiscal Year Ending March 31, 2021
[Japanese GAAP] (Consolidated Data)
February 12, 2021
Company Name: Nikko Co., Ltd.
Stock Exchange Listing: Tokyo Stock Exchange
Stock Code:6306
URL http://www.nikko-net.co.jp
Representative: Representative Director and President
Masaru Tsuji
Managing Director and General Manager
For inquiries:
Hiroshi Fujii
Telephone: +81-78-947-3141
of the Financial Division
Scheduled date for filing theScheduled date for cash
February 12, 2021
–quarterly report:
dividends:
Quarterly earnings supplementary explanatory materials: Yes
Quarterly financial results briefing session:
Yes(for institutional investors, analysts, and newspaper reporters)(Amounts rounded down to the nearest million yen)
1. Consolidated Performance for Third Quarter of Fiscal Year Ending March 31, 2021 (April 1, 2020 - December 31, 2020)(1) Consolidated Operating Results (cumulative)(% represents year-on-year change)
Quarterly net income
Net sales
Operating income
Ordinary income
attributable to owners ofparent
million yen%
million yen%
million yen%million yen%
Nine months ended
24,6320.3
904 (13.1)
1,499
28.9
966(0.4)
December 31, 2020
Nine months ended
24,562 20.3
1,040 238.0
1,163
156.5
970
72.5
December 31, 2019
Note: Comprehensive income: Nine months ended December 31, 2020: 1,277 million yen (79.4%)
Nine months ended December 31, 2019: 712 million yen (-%)

Nine months ended December 31, 2020
Nine months ended December 31, 2019

Quarterly net income per share
yen
25.16
25.20

Diluted quarterly net income per shareyen––

The Company carried out a one-to-five split of its common stock effective on October 1, 2019. Quarterly net income per share wascalculated assuming that the split took place at the beginning of the previous fiscal year.

(2) Consolidated Financial Position

Nine months ended December 31, 2020
Fiscal year ended March 31, 2020

Total assets
million yen
46,44445,677

Net assets
million yen
29,84430,293Equity ratio
Net assets per share%yen
64.2
780.9066.3
780.68(Reference) Capital: Nine months ended December 31, 2020: 29,819 million yen
Fiscal year ended March 31, 2020: 30,267 million yen

2. Dividends
Annual dividends
End of 1Q
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
Fiscal year ending
March 31, 2021
(Forecast)End of 2Q

End of 3Q

Year-end

Totalyenyenyenyenyen–

100.00

–

20.00

–

–

15.00

–
15.00

30.00

(Note) Revision of previously announced dividend targets during this reporting period: None

The Company carried out a one-to-five split of its common stock effective as of October 1, 2019. The year-end dividend figure for the fiscalyear ended March 31, 2020 takes this stock split into account and “-” is entered for the total annual dividends. The dividends for the fiscalyear ended March 31, 2020 include commemorative dividend for the Company’s 100th anniversary consisting of 50.00 yen per share asinterim dividend and 10.00 yen per share as year-end dividend.

–1–3. Consolidated Performance Forecast for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)(% represents year-on-year change)
Net income
per share
Net sales
Operating income
Ordinary income
attributable to owners
Net incomeof parent
million yen%million yen%million yen%million yen%yen
Full year
36,500
3.8
2,200
7.1
2,700 26.0
1,850 16.4
47.94(Note) Revision of previously announced earnings forecasts during this reporting period: None–2–*Notes(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries which involve
changes in the scope of consolidation): None
Newly added companies: None (Company names: -) / Excluded companies: None (Company names: -)(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: None

(4) Shares issued (common stock)(i) Number of shares
outstanding at end of period(including treasury shares)(ii) Number of shares held intreasury at end of period

3Q of fiscal year ending
March 31, 2021
3Q of fiscal year ending
March 31, 2021(iii) Average number of shares
3Q of fiscal year ending
outstanding during the period
March 31, 2021
(quarter-to-date)

40,000,000 shares

1,814,130

shares38,403,859 sharesFiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2020
3Q of fiscal year ending
March 31, 2020

40,000,000 shares

1,229,230 shares

38,529,031 shares* This 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 theforecasts herein and other notice on the use of earnings forecasts, please refer to “1. Qualitative Information on
Quarterly Results: (3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated FinancialResults” 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 onFriday, February 12, 2021.
The Company has scheduled a financial results briefing session (live streaming) for securities analysts on Thursday,February 25, 2021.

–3–

○ 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 ………………………………………………………………………………

3(2) Quarterly Consolidated Statement of Income and Consolidated Statement of Comprehensive Income …..…

5

Quarterly Consolidated Statement of Income
Nine Months Ended December 31, 2020 …..………………………………………………………………….

5

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended December 31, 2020 …..………………………………………………………………….

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

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

7(Notes on significant changes in the amount of shareholders’ equity) …………………………………………..

7(Use of special accounting methods for preparation of quarterly consolidated financial statements) ……….

7

(Changes in Accounting Policy) ……………………………………………………………………………………...

7(Additional Information) ……………………………………………………………………………………………….

7–4–

1. Qualitative Information on Quarterly Results(1) Explanation About Operating Results
During the nine months ended December 31, 2020, global economy continued to be in a severe situation, shrinking
significantly, due to the impact of the worldwide novel coronavirus pandemic. In January 2021, the government
declared a state of emergency for the second time. However, the infection is again spreading intermittently associal and economic activities gather pace in stages, making it necessary to continue closely monitoring its impact
to the domestic and overseas economy. The outlook is also expected to remain unclear for the time being.
The construction-related industry, which has strong relations to the Group, faced impacts such as discontinuationand postponement of work at construction sites and curbs on new investments reflecting concerns about the future.
In spite of such circumstances, sales increased at the Nikko Group as those of the Asphalt Plant-Related Businessand Other Business in Japan grew, while overseas sales declined due to the impact of the spread of the novel
coronavirus infection.
In the nine months ended December 31, 2020, consolidated net sales increased 0.3% from a year earlier to 24,632
million yen. Consolidated operating income totaled 904 million yen, down 13.1% year-on-year, consolidated
ordinary income totaled 1,499 million yen, up 28.9% year-on-year, and quarterly net income attributable to ownersof parent reached 966 million yen, down 0.4% year-on-year.
Results by segment are as follows.
(i) Asphalt Plant-Related Business
While overseas sales declined year on year due to the impact of the novel coronavirus pandemic, the products andmaintenance business in Japan grew compared with the same period a year earlier. As a result, net sales of thebusiness increased 2.6% to 12,774 million yen from the same period a year earlier. New orders received and orderbacklog in the period under review increased compared with a year earlier.
(ii) Concrete Plant-Related Business
Sales of the maintenance business in Japan increased from the same period year-earlier, but sales of products inJapan decreased from the period a year earlier. As a result, net sales of the business declined 1.6% to 6,192
million yen from the same period a year earlier. New orders received and order backlog in the period under review
increased compared with a year earlier.
(iii) Environment- and Conveyor-Related BusinessNet sales of the environmental products and conveyor products declined compared with a year earlier due to theimpact of the novel coronavirus pandemic. As a result, net sales of the business declined 17.8% to 1,572 million
yen from the same period a year earlier. New orders received and order backlog in the period under review
increased compared with a year earlier.
(iv) Other BusinessNet sales of temporary construction materials and mobile plant business increased compared with the same perioda year earlier. As a result, net sales of the business increased 5.0% to 4,092 million yen from the same period ayear earlier. 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 were 46,444 million yen, increasing 767 million yen from the end of
the last consolidated fiscal year.
Current assets came to 30,779 million yen, declining 647 million yen from the end of the last consolidated fiscalyear. Main factors contributing to the decline are declines of 376 million yen in electronically recorded monetaryclaims, 2,915 million yen in inventories respectively, while cash and cash equivalents declined 2,732 million yen
and notes and accounts receivable-trade declined 1,419 million yen respectively. Noncurrent assets came to
15,665 million yen, up 1,415 million yen from the end of the previous consolidated fiscal year. Factors contributing
to the change include an increase of 268 million yen in buildings and structures, an increase of 116 million yen inmachinery, equipment and vehicles, an increase of 580 million yen in land, an increase of 338 million yen inconstruction in progress, and an increase of 102 million yen in investment securities.
Liabilities totaled 16,600 million yen, increasing 1,216 million yen from the end of the last consolidated fiscal year.
The increase was due mainly to an increase of 238 million yen in electronically recorded obligations, others
increasing 1,202 million yen, and an increase of 488 million yen in long-term loans payable, and respective
decreases of 485 million yen in accrued income taxes and 287 million yen in provision for bonuses.
Net assets came to 29,844 million yen, decreasing 448 million yen from the end of the last consolidated fiscal year.
Factors contributing to the change include an increase from recording 966 million yen in net income attributable toowners of parent, an increase in valuation difference on available-for-sale securities of 202 million yen, and a
decline from payment of 1,348 million yen in dividends, and decrease of 385 million due to purchase and disposalof treasury stock.
As a result, equity ratio declined to 64.2% from 66.3% as of the end of the previous fiscal year.
(3) Explanation About Forward-Looking Statements, Including Forecast of Consolidated Financial Results
There is no change in the performance forecast for the year ending March 31, 2021 that was disclosed on May 14,2020.
–5–2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(mil. yen)
As of March 31, 2020

AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable-trade
Electronically recorded monetary claims
Merchandise and finished goods
Work in process and partly-finishedconstruction
Raw materials and supplies
Other business
Allowance for doubtful accounts
Total current assets
Non-current assets
Property and equipment
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–6–

As of December 31, 2020

12,622
9,902
1,709
935

9,890
8,482
2,086
2,675

4,473

5,360

1,237
560
(14)
31,426

1,526
770
(12)
30,779

7,362
431

8,674
538

4,341
11
12
953
1,287
(150)
6,456
14,25045,6774,443
11108581,260(131)6,452
15,66546,444

(mil. yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Accounts payable-factoring
Short-term loans payable
Income taxes payable
Accounts payable-other
Provision for bonuses
Provision for directors' bonuses
Provision for loss on order received
Other businessTotal current liabilities
Long-term liabilities
Long-term loans payable
Deferred 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
Accumulated retirement benefit-related
adjustment
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets–7–

As of December 31, 2020

2,430
1,176
3,427
1,548
627
538
415
65
54
2,260
12,5452,560
1,415
3,1371,626
141
478
127
31
244
3,462
13,226

239
5
145
2,089
358
2,838
15,383

727
5
163
2,128
347
3,373
16,600

9,197
7,918
12,632(420)
29,328

9,197
7,926
12,250(805)
28,569

1,119

1,321

55

150(235)

(222)

939

1,250

25
30,29345,67725
29,84446,444

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Nine Months Ended December 31, 2020)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other businessTotal non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of noncurrent assets
Foreign exchange losses
Compensation for damage
Other businessTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
100 anniversary program cost
Valuation losses of investment securities
Loss on sales of investment securities
Total extraordinary loss
Quarterly income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Quarterly net income
Quarterly net income attributable to owners of parent(mil. yen)
Nine Months Ended December Nine Months Ended December
31, 2019
31, 2020(from April 1, 2019,(from April 1, 2020,
to December 31, 2019)
to December 31, 2020)
24,562
24,632
17,93318,025
6,628
6,607
5,587
5,703
1,040
904

–8–

1
135
67
204

1542
22
136
704

34
1
20
7
19
81
1,163

28
8
60
12
109
1,499

454
454

89
89

119
9
128
1,489
472
45
518
970
970

64
3
68
1,520
551
2553
966
966

(Quarterly Consolidated Statements of Comprehensive Income)(Nine Months Ended December 31, 2020)

Quarterly net income
Other comprehensive income
Valuation difference on available-for-salesecurities
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(mil. yen)
Nine Months Ended December Nine Months Ended December
31, 2019
31, 2020(from April 1, 2019,(from April 1, 2020,
to December 31, 2019)
to December 31, 2020)
970
966–9–(209)202(60)
11(258)
712

95
13310
1,277

712

1,277-(0)(3) Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable(Notes on significant changes in the amount of shareholders’ equity)
The Company has purchased 616,700 shares in treasury stock, in accordance with the resolution by the Board ofDirectors Meeting held on May 22, 2020. It has disposed 35,800 shares of treasury stock as restricted stockcompensation for the Company’s directors. As a result, capital surplus and treasury stock increased 7 million yen
and 385 million yen respectively during the nine months under review.
(Use of special accounting methods for preparation of quarterly consolidated financial statements)
Not applicable(Changes in Accounting Policy)
Not applicable(Additional Information)
Not applicable– 10 –