Nitto Kohki : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021 (Based on Japanese GAAP)

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, 2021 (Based on Japanese GAAP)

					August 2, 2021
Company name:	NITTO KOHKI CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	6151	URL https://www.nitto-kohki.co.jp
Representative:	Representative Director,President CEO	Akinobu Ogata
Inquiries:	Director,Executive Managing Officer, Chief	Kenji Mori	TEL [phone]
	Administrative Officer
Scheduled date to file Quarterly Securities Report:	August 5, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	No
Holding of quarterly financial results meeting:	No	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended June 30, 2021 (from April 1, 2021 to June 30, 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		%
Three months ended June 30, 2021	5,938		16.0		744	95.2		771		86.2		547		84.0
Three months ended June 30, 2020	5,120	(26.3)		381	(67.4)		414		(65.2)		297		(63.1)
	Earnings per share		Diluted earnings per share
			Yen					Yen
Three months ended June 30, 2021			27.00					-
Three months ended June 30, 2020			14.49					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of June 30, 2021		62,732					54,924				87.5		2,706.72
As of March 31, 2021		61,721					54,502				88.3		2,685.92
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		-			12.50			-				18.50			31.00
Year ending March 31, 2022		-
Year ending March 31, 2022 (Forecast)					15.00			-				16.50			31.50

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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
11,760	11.9	1,040	28.8	1,110	25.1	750	20.9	36.96
September 30, 2021
Full year	23,980	6.4	2,180	4.2	2,320	2.4	1,580	2.0	77.87

1

4. Notes

1. Changes in significant subsidiaries during the three months ended June 30, 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 June 30, 2021	21,803,295	shares	As of March 31, 2021	21,803,295	shares
Number of treasury shares at the end of the period
	As of June 30, 2021	1,514,346	shares	As of March 31, 2021	1,514,346	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended June 30, 2021	20,288,949	shares	Three months ended June 30, 2020	20,541,263	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Assets
Current assets
Cash and deposits	26,004	25,220
Notes and accounts receivable - trade	3,898	4,136
Electronically recorded monetary claims - operating	2,203	2,363
Securities	5,199	5,199
Merchandise and finished goods	3,734	4,051
Work in process	308	384
Raw materials and supplies	2,248	2,310
Other	459	654
Allowance for doubtful accounts	(2)	(2)
Total current assets	44,054	44,319
Non-current assets
Property, plant and equipment
Buildings and structures	11,285	11,343
Accumulated depreciation	(6,230)	(6,317)
Buildings and structures, net	5,054	5,026
Machinery, equipment and vehicles	4,615	4,689
Accumulated depreciation	(3,270)	(3,404)
Machinery, equipment and vehicles, net	1,345	1,284
Tools, furniture and fixtures	7,336	7,403
Accumulated depreciation	(6,745)	(6,782)
Tools, furniture and fixtures, net	591	621
Land	3,665	3,671
Leased assets	2,034	2,736
Accumulated depreciation	(877)	(946)
Leased assets, net	1,156	1,790
Construction in progress	262	209
Total property, plant and equipment	12,076	12,604
Intangible assets
Other	1,051	1,246
Total intangible assets	1,051	1,246
Investments and other assets
Investment securities	3,118	3,070
Long-term loans receivable	37	36
Deferred tax assets	1,126	1,174
Other	273	296
Allowance for doubtful accounts	(15)	(15)
Total investments and other assets	4,539	4,562
Total non-current assets	17,667	18,413
Total assets		61,721	62,732

3

			(Millions of yen)
		As of March 31, 2021	As of June 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	866	938
Lease obligations	262	270
Income taxes payable	136	304
Provision for bonuses	551	277
Provision for bonuses for directors (and other officers)	30	6
Other	1,297	1,383
Total current liabilities	3,144	3,181
Non-current liabilities
Lease obligations	893	1,516
Retirement benefit liability	2,509	2,494
Provision for retirement benefits for directors (and other	333	155
officers)
Asset retirement obligations	10	33
Other	327	426
Total non-current liabilities	4,074	4,626
Total liabilities	7,219	7,808
Net assets
Shareholders' equity
Share capital	1,850	1,850
Capital surplus	1,924	1,924
Retained earnings	53,054	53,226
Treasury shares	(2,892)	(2,892)
Total shareholders' equity	53,935	54,108
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	807	763
Foreign currency translation adjustment	(204)	83
Remeasurements of defined benefit plans	(44)	(39)
Total accumulated other comprehensive income	559	808
Non-controlling interests	7	8
Total net assets	54,502	54,924
Total liabilities and net assets		61,721	62,732

4

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, 2020	June 30, 2021
Net sales	5,120	5,938
Cost of sales	2,560	3,100
Gross profit	2,560	2,837
Selling, general and administrative expenses
Salaries and allowances	609	621
Provision for bonuses	126	144
Retirement benefit expenses	51	43
Provision for retirement benefits for directors (and other	9	7
officers)
Promotion expenses	188	41
Research and development expenses	215	215
Other	977	1,019
Total selling, general and administrative expenses	2,179	2,093
Operating profit	381	744
Non-operating income
Interest income	5	4
Dividend income	27	26
Subsidies for employment adjustment	13	0
Rental income from buildings	9	10
Other	11	14
Total non-operating income	67	56
Non-operating expenses
Sales discounts	22	19
Foreign exchange losses	8	2
Other	3	6
Total non-operating expenses	34	28
Ordinary profit	414	771
Profit before income taxes	414	771
Income taxes	116	223
Profit	297	548
Profit attributable to non-controlling interests	0	0
Profit attributable to owners of parent		297	547

5