Nippon Concrete Industries : Consolidated Financial Results for the Three Months Ended June 30, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

	Consolidated Financial Results
	for the Three Months Ended June 30, 2021
	[Japanese GAAP]
		August 11, 2021
Company name:	NIPPON CONCRETE INDUSTRIES CO., LTD.
Stock exchange listing: Tokyo
Code number:	5269
URL:	https://www.ncic.co.jp/
Representative:	TSUKAMOTO Hiroshi,	Representative Director and President
Contact:	IMAI Shoichi,	Director and Managing Executive Officer
Phone:	03-3452-1025
Scheduled date of filing quarterly securities report:	August 13, 2021
Scheduled date of commencing dividend payments:	-
Availability of supplementary briefing material on quarterly financial results: No
Schedule of quarterly financial results briefing session:	No

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (April 01, 2021 to June 30, 2021)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended	Million yen		%	Million yen	%	Million yen	%	Million yen	%
June 30, 2021	8,902		(18.5)	(22)	-	206	(54.6)	103	(62.2)
June 30, 2020	10,922		(0.1)	249	-	454	173.1	273	195.6

(Note) Comprehensive income:	Three months ended June 30, 2021:
	Three months ended June 30, 2020:

¥	(525) million	[	-%]
¥	1,074 million	[	-%]

	Basic earnings	Diluted earnings per
	per share		share
Three months ended	Yen			Yen
June 30, 2021	1.83			-
June 30, 2020	4.88			-
(2) Consolidated Financial Position
	Total assets		Net assets	Capital adequacy ratio
As of	Million yen			Million yen	%
June 30, 2021	70,588			38,518	52.0
March 31, 2021	74,825			39,384	50.2
(Reference) Equity: As of	June 30, 2021:	¥	36,702 million
As of	March 31, 2021:	¥	37,539 million

2. Dividends

					Annual dividends
		1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
		Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2021		-		2.50	-		6.50	9.00
Fiscal year ending March 31, 2022		-
Fiscal year ending March 31, 2022				4.50	-		4.50	9.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 1st quarter dividend for the fiscal year ending March 31, 2022 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable	Basic earnings
				to owners of parent	per share
Six months ended			Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
		26,000		14.3	900	(13.2)	1,200	(12.3)	700	(6.3)	12.45
September 30, 2021
Full year			56,000		14.6	2,500	(9.0)	2,800	(12.0)	1,800	(3.8)	32.02
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the three months ended June 30, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:								)
Exclusion:	-	(Company name:								)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2021:	57,777,432	shares
March 31, 2021:	57,777,432	shares
2) Total number of treasury shares at the end of the period:
June 30, 2021:	1,290,871	shares
March 31, 2021:	1,359,228	shares

3) Average number of shares during the period:
Three months ended June 30, 2021:	56,440,357	shares
Three months ended June 30, 2020:	56,152,975	shares

• Quarterly financial results are not required to be subjected to quarterly reviews.
• Explanation for appropriate use of financial forecasts and other special notes.

The forecasts given in this document are based on the current available information in the company and certain reasonable assumptions to the company. Actual results may differ from these forecasts by a variety of reasons.

* These financial results are reflected adjustments disclosed on August 17, 2021.

Table of contents
1. Qualitative Information on Quarterly Financial Results for the Period under Review............................................	2
(1)	Explanation of Business Results.........................................................................................................................	2
(2)	Explanation of Financial Position.......................................................................................................................	4
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information...................	4
2. Quarterly Consolidated Financial Statements and Primary Notes...........................................................................	5
(1)	Quarterly Consolidated Balance Sheets..............................................................................................................	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income......................................................	7
	Quarterly Consolidated Statements of Income ...................................................................................................	7
	Quarterly Consolidated Statements of Comprehensive Income .........................................................................	8
(3)	Notes to Quarterly Consolidated Financial Statements ......................................................................................	9
	(Notes on Going Concern Assumption) ..............................................................................................................	9
	(Notes in the Case of Significant Changes in the Amount of Shareholders' Equity) ..........................................	9
	(Changes in Accounting Policies) .......................................................................................................................	9
	(Additional Information)...................................................................................................................................	10
	(Segment Information, etc.) ...............................................................................................................................	11
	(Significant Events after Reporting Period) ......................................................................................................	12
3. Other ......................................................................................................................................................................	13
Significant Events Relating to Going Concern Assumption, etc............................................................................	13

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1. Qualitative Information on Quarterly Financial Results for the Period under Review

(1) Explanation of Business Results

In the three months ended June 30, 2021, the Japanese economy as a whole appeared to be on a recovery path as capital investment and other components picked up, although consumer spending and other components remained sources of concern, affected by a resurgence of the COVID-19 pandemic.

Regarding the business environment in which the Group operates, the demand for concrete piles across Japan during the three months ended June 30, 2021 increased year on year. Whereas the shipments of concrete poles throughout Japan remained flat compared to the same period of the previous year, the demand for poles for mobile phone base stations remained robust, continuing from the previous period. Furthermore, demand is growing for concrete products that contribute to the development of new base stations for 5G mobile phones, as well as for concrete products that help prevent and mitigate disasters, reinforce national resilience, and are used in disaster recovery (such as precast concrete walls, which are the Company's proprietary products). Demand for slope reinforcement works is also growing. In addition, the environmental technology for carbon capture developed by the Company and CCUS (carbon dioxide capture, utilization and storage) products are attracting increasing attention.

In these circumstances, the Group has been working on measures to materialize our corporate philosophy: We contribute to a safe, secure, and affluent society through concrete. We also strove to further improve our earnings.

Regarding the situation of the Group's overall business, the performance was weak because of sluggish production and shipments in Foundation Business and the delay in the start of construction of precast concrete walls. On the other hand, shipment of poles for mobile phone base stations continued to be robust, production of the RC segment for the Linear Chuo Shinkansen started, and Free Kogyo Co., Ltd., which is mainly engaged in slope reinforcement works, performed well.

As a result, the Group's revenue and profit both declined. Net sales for the three months ended June 30, 2021 were 8,902 million yen (down 18.5% year-on-year); operating loss was 22 million yen (against operating profit of 249 million yen a year earlier); ordinary profit was 206 million yen (down 54.6% year-on-year); and profit attributable to owners of parent was 103 million yen (down 62.2% year-on-year).

The impact of the COVID-19 pandemic on our business has been insignificant so far.

Trends by business segment are as follows.

1) Foundation Business

The demand across Japan for concrete piles during the three months ended June 30, 2021 was slightly higher than a year earlier. However, net sales were 4,251 million yen (down 25.7% year-on-year) as a result of significant declines in production and shipments of piles due to a decrease in orders received for large-scale projects, reflecting severe competition for orders in the Kanto region.

As for the profit, a segment loss of 17 million yen (against segment income of 190 million yen a year earlier) was recorded, affected by a decline in plant utilization rates in addition to lower sales.

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We will take steps to improve plant utilization rates by securing orders through initiatives for large-scale civil engineering projects in the Kanto region. While making a concerted effort to increase profit through strengthened construction management, we will also promote the development of technologies (including those relating to materials and peripheral works), further enhance our construction management capability, and endeavor to strengthen competitiveness and improve the customers' satisfaction.

2) Concrete Secondary Product Business

In the Pole-related Business, which is part of the Concrete Secondary Product Business, while the demand for concrete poles across Japan remained flat, the Group's shipment of poles for mobile phone base stations continued to be robust, with net sales of 3,143 million yen (down 1.0% year-on-year), virtually unchanged from the same period of the previous year when a significant increase in net sales was recorded.

In terms of the Civil Engineering Product Business, notwithstanding the robust performance of Free Kogyo, which undertakes slope reinforcement works, net sales were 1,429 million yen (down 26.7% year-on-year). This decline in net sales occurred because sales of the RC segment will be recorded from the second quarter onward, even though production for the Linear Chuo Shinkansen has already started, and many precast concrete wall projects will start in the second half of the fiscal year under review, and it also reflected a decrease in construction works due to delays in the start of scheduled projects.

As a result, net sales for the Concrete Secondary Product Business were 4,572 million yen (down 10.8% year-on-year).

As for the profit, segment income was 478 million yen (up 4.1% year-on-year), owing to profit from the robust shipment of poles for mobile phone base stations as well as reflecting the contribution of briskly performing Free Kogyo.

Regarding our ongoing efforts in each business, in the Pole-related Business, there has been a steady number of inquiries about COP (cap on poles), fit-in flange poles which enhance workability of construction. Therefore, we are working to expand the sales of poles for mobile phone base stations with a view to 5G network rollouts. We are also strengthening our efforts to win orders including those for pole maintenance and the construction of poles to boost our earnings. In the Civil Engineering Product Business, we are receiving many inquiries about our precast concrete walls (for faster construction and less manpower) and slope reinforcement works for flood control, following the increasing demand for greater national resilience as well as preventing and mitigating disasters. Accordingly, we are working actively to win orders with an enhanced sales structure and expand sales by incorporating our products into designs. In the Segment Business, as well as promoting steady production of segments for the Linear Chuo Shinkansen, we are endeavoring to win orders for large-scale projects such as construction of underground regulating reservoirs in urban areas.

3) Real Estate and Solar Power Generation Business

In the Real Estate and Solar Power Generation Business, net sales were 79 million yen (down 1.3% year-on- year) and segment income was 50 million yen (up 4.6% year-on-year).

In view of the current business environment and conditions described above, each of the Group's businesses will make proactive efforts to win orders and expand sales. At the same time, while adapting swiftly to changes

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