Financial Results for the Fiscal Year Ended March 31, 2013<under Japanese GAAP> (Consolidated) May 10, 2013 Company name : NIKKO COMPANY ID number : 5343 Stock listing : Nagoya Stock Exchange Second Section URL : http://www.nikko-company.co.jp/ Representative : Kazuto Futamata, Chief Executive Officer Contact : Kazuo Miyanabe, Chief Financial Officer (Phone: +81-76-276-2121) Scheduled date of general meeting of shareholders: June 25, 2013 Scheduled date to submit Securities Report : June 26, 2013 Scheduled date to begin dividend payments : Preparation of supplementary materials for financial results: None Holding of financial results meeting: None (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2013 (April 1, 20112 - March 31, 2013)
1 3. Consolidated Forecast for the Fiscal Year Ending March 31, 2014 (April 1, 2013 - March 31, 2014)
subsidiaries track performance on an annual basis only 4. Notes (1) Changes in major subsidiaries during the period (Changes in specifies subsidiaries causing changes in scope of consolidation): None New: — companies (Company name: Eliminated: — companies (Company name: ) (2) Changes in accounting policies, changes in accounting estimates, or restatement 1) Changes in accounting policies due to changes in consolidated accounting methods: Yes 2) Changes other than 1) above: None 3) Changes in accounting estimates: Yes 4) Restatement: None (3) Number of shares outstanding (common shares) 1) Number of shares outstanding (including treasury stock) at the end of the period Mar. 31, 2012. Mar. 31, 2013: 19,572,000 shares 2) Number of treasury stock at the end of the period Mar. 31, 2012: Mar. 31, 2013: 842,706 shares 3) Average number of shares over period Mar. 31, 2013: Mar. 31, 2012: 18,731,479 shares
(Reference) Non-consolidated financial results Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2013 (April 1, 2012 - March 31, 2013)
*Information regarding the implementation of quarterly review procedures The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments and Exchange 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 information available to the Company at the time the materials were created. Actual results may differ significantly from these forecasts for a number of reasons.

(2) Consolidated statements of income and consolidated statements of comprehensive income

(3)Consolidated Statements of changes in equity

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Basis of Presenting Consolidated Financial Statements
1. Scope of Consolidation Number and name of consolidated subsidiaries: 3 1) NIKKO CERAMICS, INC. NIKKO LOGISTICS CO., LTD. Nikko ME Co., Ltd. *Nikko Hanbai Co., Ltd. changed company name to NIKKO LOGISTICS CO., LTD. in November 1st, 2012. Number and name of non-consolidated subsidiaries: 3 2) NIKKO MIDDLE EAST TRADING LLC Nikko Care Co., Ltd. Sai Co., Ltd. These 3 companies are excluded from the scope of consolidation, given the fact that they have minimal influence on the total assets, net sales, net income, and retained earnings and is relatively insignificant in the context of the consolidated financial statements. 2. Application of equity method Number and name of companies accounted for under the equity method: none 1) 2) Number and name of companies not accounted for under the equity method and the reason for the exclusion NIKKO MIDDLE EAST TRADING LLC. Non-consolidated subsidiaries: 3 Nikko Care Co., Ltd. Sai Co., Ltd. Yamamae Seitousho Co., Ltd. Affiliates: 2 N&I ASIA PTE LTD These 5 companies are not accounted for under the equity method of accounting, given the fact that they have very minor effect on net income and retained earnings and is relatively insignificant in the context of consolidated financial statements. ন্ Period end of consolidated subsidiaries Consolidated subsidiaries, NIKKO CERAMICS, INC., NIKKO LOGISTICS CO., LTD. , and Nikko ME Co., Ltd. have a fiscal year that ends on the same date as the consolidated financial statements. 4. Significant accounting standards Valuation criteria and methods for significant assets 1) (Securities) Bonds held to maturity Cost method
Securities with market quotations Securities without market quotations (Derivatives) Derivatives are carried at fair value. Securities with market quotations are carried at fair value on the balance sheet date. (Unrealized holding gain or loss is included in the net assets. The cost of securities sold is determined by the moving-average method) Securities without market quotations are stated at cost, cost being determined by the moving -average method. (Inventories) At the Company and its domestic consolidated subsidiaries, finished goods, semi-finished products and work in process are stated at cost, cost being determined by the period-average method, merchandise, raw materials and supplies are valued at cost being determined by the moving average (the carrying value on the balance sheet is written down to reflect the effect of lower profit margins), costs on uncompleted construction contracts are stated at cost, cost being determined by the specific identification method (the carrying value on the balance sheet is written down to reflect the effect of lower profit margins) Merchandise of overseas consolidated subsidiary is stated at the lower cost method determined by the first-in first-out method. Depreciation and amortization method for principal depreciable assets 2) Tangible fixed assets (excluding lease assets) At the Company, depreciation of buildings is calculated using the straight-line method, other depreciation of tangible fixed assets is computed by the declining-balance method. At the domestic consolidated subsidiaries, depreciation of tangible fixed assets is computed by the declining-balance method (however, depreciation of buildings (excluding attached structures) acquired on or April 1, 1998, is calculated using the straight-line method. At the overseas consolidated subsidiary, depreciation of tangible fixed assets is calculated using the straight-line method. (A change in an accounting policy which is difficult to distinguish from a change in an accounting estimate) At the Company and its domestic consolidated subsidiaries, pursuant to revisions made to the income tax act, the depreciation method for Property and equipment acquired on or after April 1, 2012 had been changed to method under the revised act from this fiscal year. The impact of this change to income and loss is immaterial. Intangible fixed assets (excluding lease assets) At the Company and its domestic consolidated subsidiaries, software intended for internal use are amortized over an expected useful life of 5 years by the straight-line method. At the overseas consolidated subsidiary, depreciation of tangible fixed assets is calculated using the straight-line method. Lease assets (finance leases that do not transfer ownership) Depreciation of lease assets is calculated using the straight-line method with the respective lease terms as the useful lives. The residual value is zero unless there is a residual value guarantee, in which case the amount of the guarantee is the residual value. For finance lease transactions where there is no transfer of ownership beginning prior to the fiscal year when these standards are first applied, the Company uses an accounting method that is based on the method used for ordinary lease transactions. 3)
Accounting for significant allowances
(Allowance for doubtful accounts) To prepare for credit losses on receivables, an allowance equal to the estimated amount of uncollectible receivables is provided for general receivables based on the historical write-off ratio, and bad receivables based on a case-by-case. (Provision for bonuses) To provide for employees' and director-employees' bonus obligation, the Company and its domestic consolidated subsidiaries provide an allowance in the amount accrued for the respective period based on the estimated bonus obligations. There is no system of the bonus provision in an overseas consolidated subsidiary.
(Provision for product warranties)
As warranty expenses for certain products sold by the Company are subsequently realized, a provision for product warranty has been recorded in order to reflect the results of their operations more accurately.
(Provision for retirement benefits)
To provide for employees' retirement benefits, the Company and its domestic consolidated subsidiaries provide an allowance in the amount deemed to have accrued at the end of the current fiscal year based on projected benefit obligations and pension assets at the end of the current fiscal year. Transitional obligations arising from the adoption of new accounting standards for retirement benefits is expensed using the straight-line method, based on 15 years. The actuarial difference is expensed in the following fiscal years using the straight-line method, based on the specified number of years (13 years) within the average length of remaining work period of employees.
(Provision for directors' retirement benefits)
To provide for directors' and officers' retirement benefits, the Company and its domestic consolidated subsidiaries provide an allowance for the aggregate amount payable at the end of the current fiscal year pursuant to the Company's rules on directors' retirement benefits. Other significant accounting policies 4) (Scope of cash and cash equivalents in statement of cash flows) Cash and cash equivalents consists of vault cash, deposits that can be withdrawn on demand, and short-term investments, with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of change in value. (Accounting for consumption taxes) At the Company and its domestic consolidated subsidiaries, consumption taxes are accounted by the tax-exclusion method. (Application of consolidated tax payment system) The consolidated tax system is applied.
[Segment Information]
1. Overview of reportable segments Segments used for financial reporting are the Nikko Group's constituent units for which separate financial information is available and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of resources and evaluating performance. The Group has established business divisions that comprise of the company and its subsidiaries and affiliates, and each division conducts business in line with the comprehensive strategies they have devised for products, merchandise and services in both domestic and overseas markets. Therefore, the Group consists of segments by products, merchandise and services on the basis of the business divisions, and the "Housing & Environmental equipment", "Tabletop" and "Functional Ceramics Product" are three reportable segments. Effective from the current fiscal 2013, the name of reporting segment that is "Electro-Ceramics" has been changed to "Functional Ceramics Product". There is no impact of this change to reportable segment.
2. Information related to net sales and profit or loss for each reportable segment
2. Below is a description of adjustments. (1) Segment income adjustment of 551 million yen consists of expenses, such as general administrative expenses, and research and development costs that do not belong to the reportable segments. (2) Segment assets adjustment of 2,299 million ven includes assets that do not belong to the reportable segments. The assets consists of mainly surplus funds (cash and cash equivalents), long-term investment funds (investment securities), and the assets associated with administrative department and research and development department. (3) Increase in Property, plant and equipment and Intangible assets adjustment of 3 million yen consists of capital investments  associated with administrative department and research and development department.
2. Below is a description of adjustments. (1) Segment income adjustment of 649 million yen consists of expenses related to Administrative Headquarters, Strategic Planning Headquarters and Technical Headquarters that do not belong to the reportable segments. (2) Segment assets adjustment of 2,689 million yen includes assets that do not belong to the reportable segments. The assets consists of mainly surplus funds (cash and cash equivalents), long-term investment funds (investment securities), and the assets associated with Administrative Headquarters, Štrategic Planning Headquarters and Technical Headquarters. (3) Increase in Property, plant and equipment and Intangible assets adjustment of 24 million yen consists of capital investments associated with Administrative Headquarters, Strategic Planning Headquarters and Technical Headquarters.
1. Amounts are converted to sales prices. 2. Amounts do not include consumption taxes. 3. The following table indicates the Company's Overseas sales share by industry segment and percentage figures represent Overseas sales ratio.
(2)Statements of income