Nikkon : Summary of Consolidated Financial Results for the Nine Months Ended December 31, 2021

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 Nine Months Ended December 31, 2021 (Based on Japanese GAAP)

				February 4, 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:	February 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 nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
(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	%
Nine months ended December 31, 2021	146,562		9.1	14,602		12.8	15,963		12.9	10,792	12.0
Nine months ended December 31, 2020	134,393		(10.8)	12,946		(16.8)	14,144		(15.2)	9,632	(24.4)
	Earnings per share		Diluted earnings per share
			Yen			Yen
Nine months ended December 31, 2021			164.15				163.71
Nine months ended December 31, 2020			146.55				146.05
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen				%
As of December 31, 2021	323,355	213,510				65.9
As of March 31, 2021	322,139	208,290				64.5

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, 2021	-	33.00	-	34.00	67.00
Year ending March 31, 2022	-	34.00	-
Year ending March 31, 2022 (Forecast)				35.00	69.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen		%	Yen
Full year	200,000	9.6	21,000	15.4	22,400		8.9	15,000		3.1	228.35

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4. Notes

1. Changes in significant subsidiaries during the nine months ended December 31, 2021 (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:	Yes
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 December 31, 2021	68,239,892	shares	As of March 31, 2021	68,239,892	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	2,723,237	shares	As of March 31, 2021	2,506,469	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended December 31, 2021	65,746,467	shares	Nine months ended December 31, 2020	65,733,482	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	31,399	19,432
Notes and accounts receivable - trade	33,380	34,248
Electronically recorded monetary claims - operating	3,704	3,936
Securities	951	777
Raw materials and supplies	408	541
Other	4,713	4,791
Allowance for doubtful accounts	(15)	(13)
Total current assets	74,542	63,713
Non-current assets
Property, plant and equipment
Buildings and structures, net	92,114	99,565
Machinery, equipment and vehicles, net	8,298	8,763
Tools, furniture and fixtures, net	1,220	1,160
Land	103,966	107,933
Leased assets, net	92	3,352
Construction in progress	8,236	7,019
Total property, plant and equipment	213,928	227,795
Intangible assets	2,073	2,100
Investments and other assets
Investment securities	22,191	20,458
Long-term loans receivable	668	592
Deferred tax assets	3,409	3,374
Other	5,399	5,384
Allowance for doubtful accounts	(73)	(65)
Total investments and other assets	31,595	29,744
Total non-current assets	247,596	259,641
Total assets		322,139	323,355

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			(Millions of yen)
		As of March 31, 2021	As of December 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	9,799	10,342
Electronically recorded obligations - operating	5,521	5,936
Short-term borrowings	3,843	2,325
Lease obligations	67	194
Income taxes payable	4,186	1,889
Provision for bonuses	3,785	1,988
Provision for bonuses for directors (and other officers)	183	168
Notes payable - facilities	242	335
Electronically recorded obligations - non-operating	6,470	3,995
Other	12,168	12,737
Total current liabilities	46,269	39,912
Non-current liabilities
Bonds payable	40,000	40,000
Long-term borrowings	15,033	13,665
Lease obligations	34	3,513
Deferred tax liabilities	5,570	5,029
Retirement benefit liability	5,088	5,170
Provision for retirement benefits for directors (and other	395	410
officers)
Other	1,457	2,142
Total non-current liabilities	67,579	69,932
Total liabilities	113,848	109,844
Net assets
Shareholders' equity
Share capital	11,316	11,316
Capital surplus	12,332	12,332
Retained earnings	180,131	186,391
Treasury shares	(6,187)	(6,609)
Total shareholders' equity	197,593	203,431
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	10,295	9,326
Foreign currency translation adjustment	(187)	219
Remeasurements of defined benefit plans	46	80
Total accumulated other comprehensive income	10,154	9,626
Share acquisition rights	320	227
Non-controlling interests	222	224
Total net assets	208,290	213,510
Total liabilities and net assets		322,139	323,355

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		December 31, 2020	December 31, 2021
Net sales	134,393	146,562
Cost of sales	114,450	124,534
Gross profit	19,943	22,028
Selling, general and administrative expenses	6,996	7,425
Operating profit	12,946	14,602
Non-operating income
Interest income	57	52
Dividend income	394	596
Rental income	61	55
Share of profit of entities accounted for using equity method	320	310
Foreign exchange gains	-	144
Compensation income	303	8
Miscellaneous income	540	387
Total non-operating income	1,677	1,554
Non-operating expenses
Interest expenses	156	154
Foreign exchange losses	109	-
Bond issuance costs	97	-
Miscellaneous expenses	116	39
Total non-operating expenses	480	193
Ordinary profit	14,144	15,963
Extraordinary income
Gain on sale of non-current assets	47	79
Gain on sale of investment securities	247	3
Compensation income	-	17
Total extraordinary income	294	100
Extraordinary losses
Loss on sale of non-current assets	1	12
Loss on retirement of non-current assets	20	56
Loss on sale of investment securities	-	4
Impairment losses	0	-
Total extraordinary losses	22	72
Profit before income taxes	14,416	15,991
Income taxes	4,775	5,193
Profit	9,641	10,798
Profit attributable to non-controlling interests	8	5
Profit attributable to owners of parent		9,632	10,792

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