NIKKON : Summary of Consolidated Financial Results for the Three Months Ended June 30,2022

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2022 (Based on Japanese GAAP)

				August 5, 2022
Company name:	NIKKON Holdings Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	9072	URL http://www.nikkon-hd.co.jp
Representative:	President & Representative Director	Masakatsu Kuroiwa
Inquiries:	Director,Managing Executive Officer,and	Yasunori Matsuda	TEL [phone]
General Manager of Accounting Department
Scheduled date to file Quarterly Securities Report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
(1) Consolidated operating results (cumulative)							Percentages indicate year-on-year changes
	Net sales			Operating profit	Ordinary profit	Profit attributable to
			owners of parent
	Millions of yen		%		Millions of yen		%	Millions of yen		%	Millions of yen	%
Three months ended June 30, 2022	50,578		6.3		3,861		(20.2)	4,858		(7.9)	3,201	(4.7)
Three months ended June 30, 2021	47,573		16.1		4,838		70.4	5,275		65.1	3,358	70.1
	Earnings per share			Diluted earnings per share
				Yen			Yen
Three months ended June 30, 2022			49.06				48.94
Three months ended June 30, 2021			51.08				50.92
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of June 30, 2022	340,233		220,001				64.5
As of March 31, 2022	339,475		219,035				64.4

2. Cash dividends

		Annual dividends per share
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended March 31, 2022	-	34.00	-	35.00	69.00
Year ending March 31, 2023	-
Year ending March 31, 2023 (Forecast)		48.00	-	48.00	96.00

3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
102,000	7.8	10,200	10.1	11,000	10.5	7,300	11.6	111.42
September 30, 2022
Full year	215,000	8.5	21,500	10.2	23,000	6.6	15,700	6.5	239.63

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4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2022	65,739,892	shares	As of March 31, 2022	68,239,892	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	779,949	shares	As of March 31, 2022	2,723,278	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2022	65,254,850	shares	Three months ended June 30, 2021	65,743,008	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Assets
Current assets
Cash and deposits	30,227	24,302
Notes and accounts receivable - trade	35,110	34,079
Electronically recorded monetary claims - operating	3,545	3,570
Securities	456	438
Raw materials and supplies	531	567
Other	4,797	6,077
Allowance for doubtful accounts	(12)	(12)
Total current assets	74,655	69,023
Non-current assets
Property, plant and equipment
Buildings and structures, net	103,224	112,477
Machinery, equipment and vehicles, net	8,825	8,704
Tools, furniture and fixtures, net	1,323	1,361
Land	110,792	113,508
Leased assets, net	180	146
Construction in progress	7,981	2,869
Total property, plant and equipment	232,328	239,068
Intangible assets	2,173	2,493
Investments and other assets
Investment securities	20,911	19,916
Long-term loans receivable	559	545
Deferred tax assets	3,485	3,464
Other	5,390	5,750
Allowance for doubtful accounts	(29)	(29)
Total investments and other assets	30,317	29,647
Total non-current assets	264,819	271,209
Total assets		339,475	340,233

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			(Millions of yen)
		As of March 31, 2022	As of June 30, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	11,537	11,547
Electronically recorded obligations - operating	6,200	6,340
Short-term borrowings	1,823	1,373
Lease liabilities	85	84
Income taxes payable	3,645	1,508
Provision for bonuses	3,977	4,359
Provision for bonuses for directors (and other officers)	196	80
Notes payable - facilities	489	609
Electronically recorded obligations - non-operating	3,929	5,308
Other	12,482	13,261
Total current liabilities	44,367	44,471
Non-current liabilities
Bonds payable	50,000	50,000
Long-term borrowings	13,210	13,204
Lease liabilities	88	51
Deferred tax liabilities	5,138	4,821
Retirement benefit liability	5,696	5,782
Provision for retirement benefits for directors (and other	435	403
officers)
Other	1,502	1,497
Total non-current liabilities	76,072	75,760
Total liabilities	120,440	120,231
Net assets
Shareholders' equity
Share capital	11,316	11,316
Capital surplus	12,332	12,332
Retained earnings	190,340	185,261
Treasury shares	(6,609)	(1,767)
Total shareholders' equity	207,380	207,143
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	9,621	8,969
Foreign currency translation adjustment	1,807	3,637
Remeasurements of defined benefit plans	(330)	(302)
Total accumulated other comprehensive income	11,098	12,304
Share acquisition rights	227	227
Non-controlling interests	328	324
Total net assets	219,035	220,001
Total liabilities and net assets		339,475	340,233

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2021	June 30, 2022
Net sales	47,573	50,578
Cost of sales	40,221	43,760
Gross profit	7,352	6,818
Selling, general and administrative expenses	2,514	2,956
Operating profit	4,838	3,861
Non-operating income
Interest income	20	19
Dividend income	275	316
Rental income	19	18
Share of profit of entities accounted for using equity method	105	139
Foreign exchange gains	-	443
Miscellaneous income	108	137
Total non-operating income	529	1,075
Non-operating expenses
Interest expenses	49	57
Foreign exchange losses	29	-
Miscellaneous expenses	13	21
Total non-operating expenses	91	78
Ordinary profit	5,275	4,858
Extraordinary income
Gain on sale of non-current assets	19	20
Gain on sale of investment securities	0	-
Total extraordinary income	19	20
Extraordinary losses
Loss on sale of non-current assets	0	2
Loss on retirement of non-current assets	52	101
Total extraordinary losses	53	103
Profit before income taxes	5,241	4,775
Income taxes	1,881	1,584
Profit	3,360	3,190
Profit (loss) attributable to non-controlling interests	2	(11)
Profit attributable to owners of parent		3,358	3,201

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