NIPPON THOMPSON CO., LTD.
Corporate Headquarters: Tokyo
Listed Code: 6480
Li sted Stock Exchange: Tokyo(URL: http://www.ikont.co.jp/eg/)

May 15, 2017

Consolidated Financial Reportfor the Fiscal Year ended March 31, 2017
<Japanese GAAP>
Representative: Shigeki Miyachi, President and Representative Director
For further information contact: Kesaaki Ushikoshi, General Manager of Accounting Department
Telephone: +81-3-3448-5824
Scheduled Date of Ordinary General Meeting of Shareholders:
Scheduled Date to Submit Annual Securities Report:
Scheduled Date to Begin Dividend Payments:
Preparation of Supplementary Explanation Material for Financial Results:
Holding of Presentation Meeting for Financial Results:

June 29, 2017
June 29, 2017
June 30, 2017
Yes
Yes (Targeted at institutional investors and analysts)

Figures have been rounded off to eliminate amounts less than one million yen.

1. Consolidated Operating Performance for the Fiscal Year Ended March 31, 2017
(From April 1, 2016 to March 31, 2017)(1) Results of Consolidated Operations
Years ended March 31, 2017 and 2016
Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
incomePercentagechange(Millions of yen)
Profitattributable Percentage
to ownerschangeof parent
(291)
－
1,569
(47.1)

2017
44,1301.1
1,145(62.0)
905(67.2)
2016
43,664(2.9)
3,018(22.2)
2,756(42.5)
Notes: Comprehensive income
Fiscal year ended March 31, 2017: 1,348 million yen(－))%
Fiscal year ended March 31, 2016: (1,194) million yen(－))%: Percentage change for net sales, operating income, ordinary income, and profit attributable to owners of parent indicate
percentage increase/decrease compared to the same period in the previous year.

2017
2016

Earnings
per share(Yen)(4.04)
21.64

Diluted earnings per
share
(Yen)
－
19.55

Reference: Equity in earnings of affiliates
Fiscal year ended March 31, 2017:
Fiscal year ended March 31, 2016:

Return on equity(%)－ million yen－ million yen

(0.5)
2.6

Ordinary income tototal assets
(%)
1.0
3.0

Operating income to
net sales
(%)
2.6
6.9

The fiscal year 2017(2) Consolidated Financial Position
Years ended March 31, 2017 and 2016
Total assets

Net assets

Equity ratio(%)

99,627
89,19758,60558,056

58.4
65.0

2017
2016

(Millions of yen)
Net assets
per share(Yen)
810.11801.58Reference: shareholders’ equity
Fiscal year ended March 31, 2017: 58,216 million yen
Fiscal year ended March 31, 2016: 58,003 million yen(3) Consolidated Cash Flows
Years ended March 31, 2017 and 2016
Operating
Investingactivities
activities
2017(4,981(5,376)
2016
2,521(4,908)Financing
activities
7,126(1,944)(Millions of yen)
Cash and cash
equivalents
20,04013,386

2. Dividends
Dividends per share
Base date2018(Forecast)
2017
2016

June 30
(Yen)
－
－
－

Base date

Total dividends(Full fiscal year)(Millions of yen)2018 (Forecast)
2017
2016

936
945

September 30
(Yen)
6.50
6.50
6.50

December 31
(Yen)
－
－
－

Dividends payout
ratio(Consolidated)
(%)
42.5
－
60.1

Dividends on
net assets(Consolidated)
(%)
1.6
1.6

2

March 31
(Yen)
6.50
6.50
6.50

Full fiscal year
(Yen)
13.00
13.00
13.00

The fiscal year 2017

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2018
Six-month period ending September 30, 2017, and the fiscal year ending March 31, 2018
Percentage
Operating
Percentage
Net saleschangeincomechangeSix-month period ending
25,000
17.6
1,400
101.7
September 30, 2017
Year ending March
50,000
13.3
3,000
161.9
31, 2018
Profitattributable toowners ofparent(Millions of yen)
Ordinary
Percentage
incomechange
1,300

－

2,900

220.3

Earnings
per share(Yen)

PercentagechangeSix-month period ending
1,200
16.69
－
September 30, 2017
Year ending March
2,200
30.59
－
31, 2018
Note: Percentage change for net sales, operating income, ordinary income, and profit attributable to owners of parent indicate
percentage increase/decrease compared to the same period in the previous year.

4. Others(1) Changes in the state of significant subsidiaries during the period (Changes regarding specific companies accompanying
changes in the scope of consolidation): Yes
New: 1 (Company name: UBC (Suzhou) Bearing Co., Ltd.)
Excluded: ― (Company name: ― )(2) Changes in accounting principles and accounting estimates, and restatements
Changes in accounting principles arising from revision of accounting standards:
Changes other than those in above:
Changes in accounting estimates:
Restatements:

None
None
None
None

(3) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
Fiscal year ended March 31, 2017:
73,501,425 sharesFiscal year ended March 31, 2016:
73,501,425 shares
Number of treasury stock
Fiscal year ended March 31, 2017:
1,638,790 sharesFiscal year ended March 31, 2016:
1,140,077 shares
Average number of shares outstanding at period-end
Fiscal year ended March 31, 2017:
72,077,206 sharesFiscal year ended March 31, 2016:
72,515,544 shares
Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 113,700 shares as of March 31, 2017 and 338,000 shares as of March 31, 2016. In addition, treasury stock
held by the ESOP trust is excluded from the calculation of the average number of shares outstanding at period-end, as
is other treasury stock. The number of shares excluded from said calculation totaled 207,766 shares for the fiscal year
ended March 31, 2017 and 414,833 shares for the fiscal year ended March 31, 2016.

3

The fiscal year 2017

Reference: Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2017
(From April 1, 2016 to March 31, 2017)(1) Results of Non-consolidated Operations
Years ended March 31, 2017 and 2016

2017
2016

(Millions of yen)

Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
incomePercentagechangeProfitPercentagechange38,27637,982

0.8
(4.3)

(82)
2,665

－
(18.2)

(72)
2,631

－
(36.3)

(534)
1,658

－
(34.4)

Note: Percentage change for net sales, operating income, ordinary income, and profit indicate percentage increase/decrease
compared to the same period in the previous year.

2017
2016

Earnings
per share(Yen)(7.41)
22.87

Diluted earnings
per share
(Yen)
－
20.65

(2) Non-consolidated Financial Position
Years ended March 31, 2017 and 2016

2017
2016

Total assets

Net assets

Equity ratio(%)

91,44682,75853,02652,881

58.0
63.9(Millions of yen)
Net assets
per share(Yen)
737.47730.55

Reference: shareholders’ equity
Fiscal year ended March 31, 2017: 52,996 million yen
Fiscal year ended March 31, 2016: 52,863 million yen

These consolidated financial statements are not subject to audit by an independent audit corporation

Explanations or Other Items Pertaining to Appropriate use of Operating Performance Forecasts
Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the “Group”)
as of the date of this document, May 15, 2017. Accordingly, for a wide variety of reasons, there remains the possibility that
actual performance results may differ from projections. For performance forecasts, please refer to “Overview of Operating
Results (4) Outlook” on page 7.

4

The fiscal year 2017

Overview of Operating Results(1) Summary of Operating Results
Overview for the Fiscal Year Ended March 31, 2017
In the consolidated fiscal year ended March 31, 2017, the Japanese economy saw continued gradual improvement due mainly
to a pickup in personal consumption amid higher employment figures and income levels. Overseas, the U.S. economy
remained firm, backed by an improved labor market, and European economies continued to gradually recover. The economies
of China and other emerging countries decelerated in the first half of the fiscal year but appeared to recover in the latter half.
Under these circumstances, the Group launched its “IKO Mid-term business plan 2017 (three-year-plan) CHANGE& CHALLENGE" in April 2015. Aiming to bolster its competitiveness and presence in global markets, the Group has
implemented a wide range of initiatives to grow its businesses and reinforce its earnings base. In addition, to accelerate its
future-oriented strategies for greater growth, the Group turned two companies that manufacture and sell bearings in China into
subsidiaries in January 2017: UBC (Shanghai) Precision Bearing Manufacturing Co., Ltd. and UBC (Suzhou) Bearing Co.,Ltd.
From a sales perspective, the Group held private shows and exhibitions worldwide as it worked to achieve further
market penetration of the IKO brand and cultivate new demand. The Group focused on expanding sales of its strategic productsby aggressively embracing a "customer-centered, proposal-based sales approach" as a pillar of its sales policy. In addition, in aneffort to reinforce its sales capabilities in overseas markets, the Group established the sales subsidiary IKO Thompson Bearings
Canada, Inc. in April 2016 in Canada.
In terms of product development , the Group worked to enhance its lineup of products that provide high added value
from a customer perspective. To this end, the Group introduced the MX Master Grade roller-type linear motion rolling guide,
which achieves running precision among the best in the series, and CRBHV/CRBFV crossed roller bearings, which offer quick
delivery and excellent cost performance.
From a production standpoint, the Group focused on the improvement of production management methods and theglobal procurement of parts and materials with the aim of being more responsive to delivery deadlines and boosting profitability
by reducing costs. In addition, the Group expanded both the production capacity and range of products produced by overseas
subsidiary IKO Thompson Vietnam Co., Ltd.
Turning to the Group's operational results, although domestic demand for machine tools and related products wasflat, demand remained firm, especially for electronics-related devices, including semiconductor manufacturing equipment.
Overseas, in Europe and the United States, demand for electronics-related devices and precision machinery rose and sales
increased year on year on a local currency basis, but revenue fell due to the negative effects of a stronger yen. In Asia, sales
grew due to aggressive sales activities promoted mainly by local sales subsidiaries in China and Thailand.
As a result, consolidated net sales for the fiscal year under review totaled ¥44,130 million, up 1.1% year on year. On
the earnings front, the impact of the yen’s appreciation as well as general and administrative expenses increased as additional
hiring to expand the business base and system development costs. As a result, operating income came to ¥1,145 million, down
62.0% year on year, and ordinary income came to ¥905 million, down 67.2% year on year. Reflecting an increase in the5The fiscal year 2017

Company’s tax burden as a result of the reversal of deferred tax assets, loss attributable to owners of the parent amounted to¥291 million, compared with profit attributable to owners of the parent of ¥1,569 million for the previous fiscal year.
Because the Group manufactures and sells Needle Roller Bearings, Linear Motion Rolling Guides and Machine
Components on an integrated basis, disclosure of segment information has been omitted. Sales of Needle Roller Bearings andLinear Motion Rolling Guides totaled ¥38,797 million, a 1.7% increase compared with the corresponding period in the previous
fiscal year. Sales of Machine Components decline 3.2% to ¥5,332 million.
Business Segment Information
March 31,2017
Millions of Component
yenpercentages
Needle Roller Bearings, Linear
Motion Rolling Guides
Machine Components
Total net sales

March 31,
2016
Millions of Component
Yenpercentages

ChangeMillions ofyen

Percentagechange38,79787.9

38,154

87.4

643

1.7

5,332
44,130

12.1
100.0

5,509
43,664

12.6
100.0

(176)
466

(3.2)
1.1

(2) Summary of Financial Position
Total assets as of March 31, 2017, totaled ¥99,627 million, an increase of ¥10,429 million compared with the end of theprevious fiscal year. This mainly comprised increases in cash and deposits of ¥6,306 million, notes and accounts
receivable-trade of ¥2,872 million, goodwill of ¥384 million, leasehold right of ¥436 million, investment securities of ¥2,526
million as well as a decrease in inventories of ¥2,469 million.
Total liabilities amounted to ¥41,021 million, an increase of ¥9,880 million compared with the end of the previous
fiscal year. This mainly comprised increases in notes and accounts payable-trade of ¥1,592 million, corporate bonds of ¥10,000
million, long-term loans payable of ¥3,275 million, deferred tax liabilities of ¥1,165 million as well as decreases in current
portion of convertible bond with subscription rights of ¥4,999 million, accounts payable-other of ¥1,600 million.
Total net assets amounted to ¥58,605 million, an increase of ¥549 million compared with the end of the previous
fiscal year. The main components was an increase in net unrealized holding gains on available-for-sale securities of ¥1,797
million as well as a decrease in retained earnings of ¥1,232 million.

(3) Summary of Cash Flows
Cash and cash equivalents at the end of the fiscal year under review totaled ¥20,040 million, an increase of ¥6,653 million
compared with the end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities was ¥4,981 million. The major inflows were imcome before income taxes of ¥905
million, depreciation and amortization of ¥2,596 million, a decrease in inventories of ¥2,984 million, a decrease in accounts
receivable-other of ¥329 million, and an increase in notes and accounts payable-trade of ¥686 million while the major outflows
were an increase in notes and accounts receivable-trade of ¥2,264 million and income taxes paid of ¥451 million.
6

The fiscal year 2017

Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥5,376 million. This result was payments for the purchase of property, plant andequipment of ¥3,756 million and purchase of shares of subsidiaries resulting in change in scope of consolidation of ¥1,211
million.
Cash Flows from Financing Activities
Net cash provided in financing activities was ¥7,126 million. This was mainly due to proceeds from long-term loans payable of¥7,098 million and proceeds from issuance of bonds of 10,000 million, while the major outflows were repayments of long-termloans payable of ¥3,818 million, redemption of convertible bonds with subscription rights to shares of ¥4,999 million, and cash
dividends paid of ¥941 million.

The trend of cash flow indices is as follows:
For the periods ended

Equity ratio (%)
Equity ratio on market value basis (%)
Debt repayment period (Years)
Interest coverage ratio (Times)

March 31,
2014
64.6
42.3
2.2
50.3

March 31,
2015
65.4
46.3
2.4
74.6

March 31,
2016
65.0
32.6
7.1
21.6

March 31,
2017
58.4
43.6
5.4
43.4

Notes:
Equity ratio:

Total shareholders’ equity / total assets

Equity ratio on market value basis:

Aggregate market value of common stock / total assets

Debt repayment period:

Interest-bearing liabilities / cash flows from operating activities

Interest coverage ratio:
Cash flows from operating activities / interest payments
1. All indices based on consolidated financial figures.
2. Aggregate market value of common stock:Market price at the period-end x number of shares outstanding at the period-end (excluding treasury stock)
3. Cash flows from operating activities corresponds to the cash flow from operating activities in the consolidated statement ofcash flows. Interest-bearing liabilities include all liabilities reported on the consolidated balance sheet for which the Group ispaying interest. Interest payments correspond to the interest paid in the consolidated statement of cash flows.
(4) Outlook
Regarding the forecast for the current fiscal year, the world economy is expected to gradually improve, driven by conditions indeveloped nations, despite uncertainty arising mainly from BREXIT and the shifting policies in the United States. The Japanese
economy is expected to continue recovering due to improving employment figures and income levels as well as rising
corporate earnings and exports supported by the upturn in overseas economies.
In light of these economic conditions, the Group is forecasting consolidated net sales of ¥50.0 billion, ordinary
income of ¥2.9 billion and profit attributable to owners of parent of ¥2.2 billion for the year ending March 31, 2018.

7

The fiscal year 2017

(5) Fundamental Earnings Distribution Policy and Dividends for the Current and Next Fiscal Periods
With regard to the distribution of profits, Nippon Thompson Co., Ltd. (the “Company”) positions the return of profits toshareholders as one of its major management issues, having as its basic policy continuing stable dividends while taking
performance levels into overall consideration.
In addition, while giving heed to such factors as the future business environment, the Group intends to retain
sufficient internal reserves. Specifically in this regard, the Group works to strengthen its management base and improveearnings power to maximize corporate value. Simultaneously, it reviews production systems that respond to rapid technologicalinnovation and fluctuating demand and makes such investments as new product development.
In keeping with the basic policy and as a result of a general review of, for example, the level of performance over the
fiscal year and internal reserves, the Company plans a year-end dividend of ¥6.5 per share. Including the interim dividend of¥6.5 per share, the planned full-year dividend payment ¥13 per share.
The Company is forecasting a dividend of ¥13 per share (including an interim dividend of ¥6.5 per share) for the
fiscal year ending March 31, 2017.

8

The fiscal year 2017

Status of the GroupThe Group is composed of the Company and its subsidiaries, and engages in the manufactures and sells Needle Roller
Bearings, Linear Motion Rolling Guides and Machine Components.
The Group’s business is outlined in the following diagram.

Customers
Products
Sales(Domestic)
Consolidated Subsidiary:
Nippon Dic Co., Ltd.

Products

Products

Non – Consolidated Company:
Hassei Shokai Co., Ltd.
(Overseas)
Consolidated Subsidiaries:
IKO International, Inc.
Nippon Thompson Europe B.V.
IKO - Thompson (Shanghai) Ltd.
IKO Thompson Asia Co., Ltd.

Products

Sales(Overseas)
Consolidated Subsidiary:
UBC (Shanghai) Precision Bearing
Manufacturing Co., Ltd.

Non – Consolidated Companies:
IKO Thompson Korea Co., Ltd.
IKO Thompson Brazil Service Co., Ltd.
IKO Thompson Bearings Canada, Inc.
Products

Products

Products

Nippon Thompson Co., Ltd.
Process and Products
Production(Domestic)
Non – Consolidated Companies:
Shinmie Seiko Co., Ltd.
Nagahara Seiko Co., Ltd.

Service(Domestic)
Non – Consolidated Company:
Gokurakuji Kosan Co., Ltd.

Production(Overseas)
Consolidated Subsidiary:
UBC (Suzhou) Bearing Co., Ltd.

Production
OEM(Overseas)
Consolidated Subsidiary:
IKO Thompson Vietnam Co., Ltd.
Note: The Group established IKO Thompson Bearings Canada, Inc. in Canada and kicked off operations there April 1, 2016.
The Group turned UBC (Shanghai) Precision Bearing Manufacturing Co., Ltd. and UBC (Suzhou) Bearing Co., Ltd.
into subsidiaries there January 13, 2017.
9

The fiscal year 2017Management Policies(1) Fundamental Management Policies
Based on the corporate philosophy of “contributing to society as an R&D-oriented company,” the Group —a trusted
international enterprise—is committed to serving domestic and overseas markets through the manufacture and sale of Needle
Roller Bearings and Linear Motion Rolling Guides. Our emphasis is on quality rather than scale, as we see our mission as
developing high-value-added products that meet customer needs. The entire company is engaged in an effort to associate the
Nippon Thompson brand with the acronym IKO—“I” for Innovation, because the Company’s products are always innovative;“K” for Know-how, because they incorporate a high level of technological expertise; and “O” for Originality, because they arehighly creative.
The Group believes that contributing to the development of society is one of its most important management
policies. While thoroughly instilling corporate ethics, we make every effort to ensure compliance in management and contributeto the preservation of the global environment. Our corporate activities take into account this social mission.

(2) Management Targets and Performance Indicators
Raising shareholder return on equity (ROE), in an effort to maximize shareholder value, is the principal indicator for the Group.
Management also focuses on improving cash flows to enhance stability and to strengthen the Group’s financial position.

(3) Medium-Term Management Strategies
Through the manufacture and sale of bearings and other products, the Group aims to gain a reputation of trustworthiness anddependability in the global market while further strengthening its presence and achieving continuous growth. In its every action,
the Group strives to realize this vision and help customers resolve their problems. To achieve these aims, in April 2015 welaunched “IKO Mid-term business plan 2017 (three-year plan) CHANGE & CHALLENGE” under which we arestrengthening our corporate governance and implementing measures covering the following range of issues to realize a
proactive management approach.
1. Improving return on invested capital (ROIC)
2. Pursuing technological development to meet customer expectations
3. Pursuing technological development aimed at new markets and fields
4. Implementing a “customer-centered, proposal-based sales approach”
5. Establishing and enhancing a robust system platform
6. Strengthen global management(4) Issues to Be Resolved
The main businesses of the Group are expected to experience a steady increase in demand from various sectors, centered on themachine tools and semiconductor manufacturing equipment industry. This forecasted rise in demand is attributable to the global
10The fiscal year 2017

growth of the machinery and electronics industry. In step with worldwide trends toward the prevention of global warming, theCompany’s products, which meet the need for compact, power-saving machinery, are present in business fields that possess
growth potential. In addition, with the decline in the working age population in Japan and the rise in wages in emerging
economies, there is a growing call for factories that can operate with fewer workers. The factory automation (FA) market isexpanding, and products for industrial robot applications are expected to become a major growth field.
The Group will respond flexibly to changes in the businesses environment while conducting focused investment ofmanagement resources based on careful analysis of the abovementioned promising markets and implementing a range ofmeasures to heighten its global competitiveness.
From the sales perspective, the Group will further promote the IKO brand by actively developing on a global scale a“customer-centered, proposal-based sales approach” as a pillar of its sales policy. In addition, we are revamping our sales
systems to improve efficiency and also aim to increase sales by cultivating existing markets and nurturing new ones. In
particular, the Group will work to expand its market share in such growth markets as China, Southeast Asia and India, where
demand is expected to grow. Specifically, in these areas, the Group will provide technical support to sales agencies through its
sales subsidiaries including UBC (Shanghai) Precision Bearing Manufacturing Co., Ltd. which was turned into subsidiaries inJanuary 2017 and cultivate new demand while working to precisely understand the unique needs of each market in order toadvance swift, flexible strategies for growing sales.
Regarding product development, the Group is continually working to create high-value-added products that meetcustomer needs. By assessing demand trends and needs in various regions worldwide, sharing customer values and taking
advantage of our superior technological capabilities, we will develop products that anticipate customer needs.
Turning to production activities, the Group will strive toward the optimal global procurement of parts and materials
and work toward improving the international competitiveness of production subsidiary IKO Thompson Vietnam Co., Ltd, a
key production base in the Group’s global strategy, by expanding the range of products the company produces, increasing
production capacity, and achieving stable quality at reduced cost. In terms of domestic manufacturing bases, we will improvecustomer satisfaction by quickly responding to our customers’ diversifying and increasingly stringent needs through shorterproduction lead times while leveraging our production system for diverse product lines.

Basic Stance on Selection of Accounting Methods
The Group applies “Japanese GAAP” to facilitate the comparison of consolidated financial statements with different reporting
periods.
As for the adoption of “International Financial Reporting Standards (IFRS)”, the Group maintains a policy ofcontinuing to appropriately respond to the situation going forward.

11

The fiscal year 2017

Consolidated Financial Statements
Consolidated Balance Sheets
As of March 31, 2017 and 2016
Millions of yen
March 31,
March 31,
2016
2017

ASSETS
Current Assets:
Cash and deposits
Notes and accounts receivable-tradeFinished products
Material in process
Raw material
Deferred tax assets
OthersLess: Allowance for doubtful accounts
Total current assets
Fixed Assets:
Tangible fixed assets:
Buildings and structures
Machinery and vehicles
Tools and fixtures
Land
Lease assets
Construction in progress
Total tangible fixed assets
Intangible fixed assets:
Goodwill
OthersTotal intangible fixed assets
Investments and other assets:
Investment securities
Deferred tax assets
OthersLess: Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

12

20,24013,113
13,186
7,892
4,837
1,907
1,462
(11)
62,62913,933
10,24013,814
9,013
5,558
2,404
1,287
(15)
56,236

5,691
10,548
587
2,965
680
399
20,872

5,553
10,566
620
2,965
719
319
20,744

384
2,989
3,374

－
1,974
1,974

10,440－2,356(45)12,751
36,998

7,914
268
2,104
(45)
10,24232,961

99,627

89,197

The fiscal year 2017

Millions of yen
March 31,
March 31,
2016
2017

LIABILITIESCurrent Liabilities:
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds
Current portion of convertible bonds with subscription rights
Current portion of long-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
OthersTotal current liabilities

8,143
400
5,000
－
3,133
68
2,256
202
60
1,595
20,861

6,551
－
－
4,999
2,876
67
2,371
187
70
2,604
19,728Long-Term Liabilities:
Corporate bonds
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liabilities
OthersTotal long-term liabilities

10,000
8,133
561
1,177
182
105
20,160

5,000
5,114
624
11
539
122
11,412TOTAL LIABILITIES

41,021

31,141

Shareholders’ Equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

9,533
12,88732,801(801)
54,4209,533
12,88734,034(620)
55,833

Accumulated other comprehensive income:Net unrealized holding gains on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests

3,975
6
(104)
(82)
3,795
30
359

2,177
(4)
163
(167)
2,169
18
35

TOTAL NET ASSETS

58,60558,056

99,627

89,197NET ASSETSTOTAL LIABILITIES AND NET ASSETS
13

The fiscal year 2017

Consolidated Statements of Income
Years ended March 31, 2017 and 2016
Millions of yen
March 31,
March 31,2016
2017
Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses

44,13031,206
12,924
11,77843,66429,28814,376
11,357

Operating Income

1,145

3,018

14
199
18
35
119
388

28
185
19
111
94
439

123
139
37
240
65
23
628

115
119
25
415
－
25
701

905

2,756

－
－

2
2

905

2,754

134
1,050
(278)
12
(291)

701
480
1,572
2
1,569

Non-Operating Income:Interest income
Dividend income
Real estate rent
Subsidy income
Others
Non-Operating Expenses:
Interest expenses
Sales discounts
Loss on retirement of fixed assets
Foreign exchange losses
Bond issuance cost
OthersOrdinary Income
Extraordinary Losses:
Loss on sales of fixed assets

Income before Income Taxes
Income Taxes:
Current
DeferredProfit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

14

The fiscal year 2017

Consolidated Statements of Comprehensive Income
Years ended March 31, 2017 and 2016
Millions of yen
March 31,
March 31,2016
2017
Profit (loss)
Other Comprehensive Income:Net unrealized holding gains on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total Other Comprehensive Income
Comprehensive Income

(278)

1,572

1,797
11
(266)
85
1,627
1,348

(1,456)(4)(1,025)(280)(2,767)(1,194)

Breakdown:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

1,334
13

(1,192)(2)

15

The fiscal year 2017

Statement of Changes in Consolidated Shareholders’ Equity
For the fiscal year ended March 31, 2017
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2016
Changes during the period
Cash dividends

Retainedearnings

Total
shareholder’
equityTreasury stock

9,533

12,88734,034(620)

55,833

－

－

(941)

－

(941)

－

－

(291)

－

(291)

－
－

－
－

－
(0)

(280)
99

(280)
99

－
0
9,533

－
0
12,887－(1,232)32,801

－
(180)
(801)

－
(1,413)54,420Loss attributable to ownersof parent
Acquisition of treasury
stock
Disposal of treasury stock
Net changes in items otherthan shareholders’ capital
Total changes during the period
As of March 31, 2017

Accumulated other comprehensive income

As of April 1, 2016

Net unrealized
holding gains
onavailable-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Total
Accumulated
othercomprehensive
incomeSubscription
rights toshares

Noncontrollinginterests

2,177

(4)

163

(167)

2,169

18

35

58,056

－

－

－

－

－

－

－

(941)

－

－

－

－

－

－

－

(291)

－

－

－

－

－

－

－

(280)

－

－

－

－

－

－

－

99

1,797

11

(268)

85

1,626

11

324

1,962

1,797
3,975

11
6

(268)
(104)

85
(82)

1,626
3,795

11
30

324
359

549
58,605Total
net assets

Changes during theperiodCash dividends
Loss attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasurystock
Net changes in items
other thanshareholders’ capital
Total changes during theperiodAs of March 31, 201716

The fiscal year 2017

For the fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2015
Changes during the period
Issuance of new shares
Cash dividends
Profit attributable to ownersof parent
Acquisition of treasury
stock
Disposal of treasury stock
Effect of change in closing
dates of consolidated
subsidiaries
Net changes in items otherthan shareholders’ capital
Total changes during the period
As of March 31, 2016

Retainedearnings

Total
shareholder’
equityTreasury stock

9,532

12,88633,966(260)

56,125

0
－

0
－

－
(913)

－
－

1
(913)

－

－

1,569

－

1,569

－
－

－
－

－
(0)

(425)
65

(425)
65

－

－

(588)

－

(588)

－
0
9,533

－
0
12,887－
67
34,034

－
(359)
(620)

－
(291)
55,833

Accumulated other comprehensive income

As of April 1, 2015
Changes during theperiodIssuance of newsharesCash dividends
Profit attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasury
stock
Effect of change inclosing dates of
consolidated
subsidiaries
Net changes in items
other thanshareholders’capital
Total changes during theperiodAs of March 31, 2016

Net unrealized
holding gains
onavailable-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Total
Accumulated
othercomprehensive
incomeSubscription
rights toshares

Noncontrollinginterests

3,634

0

1,189

113

4,937

－

37

61,099

－
－

－
－

－
－

－
－

－
－

－
－

－
－

1
(913)

－

－

－

－

－

－

－

1,569

－

－

－

－

－

－

－

(425)

－

－

－

－

－

－

－

65

－

－

－

－

－

－

－

(588)

(1,456)(4)(1,026)(280)(2,767)18(2)(2,752)(1,456)
2,177

(4)
(4)

(1,026)
163

(280)
(167)

(2,767)
2,169

18
18

(2)
35

(3,043)58,05617

Total
net assets

The fiscal year 2017

Consolidated Statements of Cash Flows
Years ended March 31, 2017 and 2016
Millions of yen
March 31,2017

March 31,2016

Cash Flows from Operating Activities:
Income before income taxes

905

2,754

Depreciation and amortization

2,596

2,272

(4)

(10)

Decrease in net defined benefit liabilities

(10)
(255)

(10)
(236)

Interest and dividend income

(214)

(213)

Interest expenses

123

115

Loss on retirement of fixed assets

37

25

Decrease (Increase) in notes and accounts
receivable-trade(2,264)735

Decrease (Increase) in inventories

2,984

(864)

Decrease (Increase) in other accounts receivable
Increase (Decrease) in notes and accounts
payable-trade
Decrease in accrued expenses

329

(270)

686

(757)

(133)

(19)

Others-net

552

438

Subtotal

5,333

3,958

Interest and dividend income received

214

213

Interest paid

(114)

(116)

Income taxes paid

(451)

(1,533)

Net cash provided by operating activities

4,981

2,521

Decrease in allowance for doubtful accounts
Decrease in allowance for directors’ andcorporate auditors’ bonuses

18

The fiscal year 2017

Millions of yen
March 31,2017

March 31,2016

Cash Flows from Investing Activities:
Payments into time deposits

(247)

(678)

Proceeds from time deposits

571

919

Payments for purchase of property,
plant and equipment(3,756)(3,881)

Payments for purchase of intangible assets

(439)

(721)

Payments for purchase of investment securities

(17)

(118)

Payments for purchase of insurance funds

(268)

(283)

Purchase of shares of subsidiaries resulting inchange in scope of consolidation(1,211)

－

(6)

(144)

(5,376)(4,908)

Increase in short-term loans payable

1,800

1,800

Decrease in short-term loans payable(1,800)(1,800)

Proceeds from long-term loans payable

7,098

3,200

Repayments of long-term loans payable(3,818)(3,792)

Proceeds from issuance of bonds

10,000－

Redemption of convertible bonds with subscription rights to shares(4,999)－Cash dividends paid

(941)

(913)

Payments for purchase of treasury stock

(280)

(425)

67

(11)

7,126

(1,944)

(78)

(80)

Net increase (decrease) in cash and cash equivalents

6,653(4,410)Cash and cash equivalents at beginning of year

13,38618,038－(240)

20,04013,386

Others-net
Net cash used in investing activities
Cash Flows from Financing Activities:

Others-net
Net cash provided (used) in financing activities
Foreign currency translation adjustments on
cash and cash equivalents

Decrease in cash and cash equivalents due to change in fiscal period of
consolidated subsidiaries
Cash and cash equivalents at end of year

19

The fiscal year 2017

Notes on the Premise of a Going Concern
There are no applicable articles.

Basis of presenting the consolidated financial statements(Changes in the scope of consolidation)
In the fiscal year ended March 31, 2017, the Group acquired equity in UBC (Shanghai) Precision Bearing Manufacturing Co.,
Ltd., turning it into a subsidiary and including it in the scope of consolidation. At the same time, the UBC Shanghai subsidiary
UBC (Suzhou) Bearing Co., Ltd. was also made a consolidated subsidiary. Furthermore, because the acquisition date of record
was March 31, 2017, only the balance sheets for the fiscal year ended March 31, 2017, have been included in consolidated
results.

Additional Information(Accounting procedures for the ESOP trust)With the aim of ensuring employee benefits, the Company provides shares of the Company to the Nippon-Thompson
Employee Stock Ownership Association (hereafter referred to as the Company’s Stock Ownership Association) through the
ESOP Trust.

(1) Outline of Trades
The ESOP trust (hereafter referred to as the Trust Account) was established by the Company to cover employees enrolled
in the Company’s Stock Ownership Association who fulfill certain criteria for becoming beneficiaries. Within apredetermined acquisition period, the Trust Account acquires shares of treasury stock in a number equivalent to that which
the Company’s Stock Ownership Association expects to acquire over the five years, and then sells on said stock to theCompany’s Stock Ownership Association on a set day every subsequent month. At the end of the term of the trust, if theTrust Account records a profit due to higher share prices, this profit shall be distributed to the beneficiaries in proportion totheir individual contributions. If the Trust Account records a loss on transfer due to lower share prices and debt is incurredon trust assets, no additional burden will be imposed on employees as the Company will repay the bank in one lump sumin accordance with the warranty of the loan agreement.

(2) Treasury Shares Remaining in the Trust
Shares of the Company remaining in the trust are recorded as treasury shares under net assets through the carrying value(net of associated costs) in the trust. The carrying value and number of such treasury shares were ¥143 million and 338,000
shares respectively at March 31, 2016 and ¥48 million and 113,000 shares respectively at March 31, 2017.

(3) Carrying Value of Loans Recorded through Application of the Gross Price Method
As of March 31, 2016: ¥133 million; As of March 31, 2017: ¥66 million
20

The fiscal year 2017

(Application of the “Implementation Guidance on Recoverability of Deferred Tax Assets”)
The Group has adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26,
March 28, 2016) from the first quarter of the fiscal year under review.

21

The fiscal year 2017

Notes
(Statement of Changes in Consolidated Shareholders’ Equity)
For the fiscal Year ended March 31, 2017
1. Class and Number of Shares Issued
Increased shares
As of April 1, 2016
during the fiscal year
(Shares)(Shares)Common stock－
73,501,425

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2017
(Shares)
73,501,425

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2017
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
1,140,077
730,513
231,800
1,638,790
Notes: 1. The 113,700 shares held by the ESOP trust are included in treasury stock at March 31, 2017.
Notes: 2. The increase of 513 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The increase of 730,000 shares of treasury stock is due to the acquisition of treasury stock based on a resolution passed
at a meeting of Board of Directors.
Notes: 4. The decrease of 7,500 shares of treasury stock is due to the exercise of the share option rights.
Notes: 5. The decrease of 224,300 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2016
(Shares)

3.Subscription rights
Type ofsharesBreakdown ofsubject to
subscription rights
subscription
rightsNumber of shares subject to subscription rights (Shares)
As ofApril 1, 2016

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2017

Balance as ofMarch
31,2017(Millions ofyen)

Second Series ofUnsecured
Convertible
Bonds with
Common－－7,750,387
7,750,387
Note
Subscription
stock
The
RightsCompany(Issued April 19,
2011)
Stock Options as
Subscription
－
－
－
－
－
30
RightsTotal－－
7,750,387
7,750,387
30
Notes: 1. The total amount of convertible bonds with subscription rights shall be recorded as liabilities at the time of issuance
Note: pursuant to the issuance of straight bonds.
2. The decrease of 7,750,387 shares of treasury stock is due to redemption of convertible bonds with subscription rights.

22

The fiscal year 2017

4. Dividend(1) Dividend Paid
Total Dividend(Millions of yen)

Dividend per
share
(Yen)

Recorddate

Effective
Date

Resolution

Class of
Stock

Ordinary general meetingof shareholders on
June 29, 2016

Common stock

472

6.50

March 31,2016

June 30,
2016

Board of directors on
November 7, 2016

Common stock

468

6.50

September 30,
2016

December 7,
2016

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 29, 2016, include
Notes: ¥2 million to be paid as dividends on the 338,000 shares of treasury stock held to date by the ESOP trust.
Notes: 2. Total dividends, based on a resolution at a meeting of Board of Directors held on November 7, 2016, include
Notes: ¥1 million to be paid as dividends on the 207,400 shares of treasury stock held to date by the ESOP trust.
(2) Dividend with a record date that falls within the current fiscal period under review and an effective date in the following
fiscal period
Dividend perClass ofResource
Total DividendRecordEffective
Resolution
share
stock
of dividend (Millions of yen)
date
Date
(Yen)
Ordinary general meeting
Common Retained
March 31,
June 30,of shareholders on
467
6.50
stock
earnings
2017
2017
June 29, 2017
Note: Total dividends include ¥0 million to be paid as dividends on the 113,700 shares of treasury stock held to date by
the ESOP trust.

For the fiscal Year ended March 31, 2016
1. Class and Number of Shares Issued
Increased shares
Decreased shares
As of March 31, 2016
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
73,499,875
1,550－
73,501,425
Note: 1. The increase of 1,550 shares of treasury stock is due to the exercise of the subscription rights of convertible bonds with
subscription rights.
As of April 1, 2015
(Shares)

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2016
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
562,594733,107
155,624
1,140,077
Notes: 1. The 338,000 shares held by the ESOP trust are included in treasury stock at March 31, 2016.
Notes: 2. The increase of 3,107 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The increase of 730,000 shares of treasury stock is due to the acquisition of treasury stock based on a resolution passed
at a meeting of Board of Directors.
Notes: 4. The decrease of 624 shares of treasury stock is due to sales claims of odd lot shares of less than one trading unit.
Notes: 5. The decrease of 155,000 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2015
(Shares)

23

The fiscal year 2017

3.Subscription rights
Type ofsharesBreakdown ofsubject to
subscription rights
subscription
rightsNumber of shares subject to subscription rights (Shares)
As ofApril 1, 2015

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2016

Balance as ofMarch
31,2016(Millions ofyen)

Second Series ofUnsecured
Convertible
Bonds with
Common7,751,937－
1,550
7,750,387
Note
Subscription
stock
The
RightsCompany(Issued April 19,
2011)
Stock Options as
Subscription
－
－
－
－
－
18
RightsTotal
7,751,937－
1,550
7,750,387
18
Notes: 1. The total amount of convertible bonds with subscription rights shall be recorded as liabilities at the time of issuance
Note: pursuant to the issuance of straight bonds.
2. The decrease of 1,550 shares of treasury stock is due to the exercise of the subscription rights of convertible bonds with
subscription rights.
4. Dividend(1) Dividend Paid
Resolution

Class of
Stock

Ordinary general meetingof shareholders on
June 26, 2015

Common stock

Board of directors on
November 9, 2015

Common stock

Dividend per
share
(Yen)

Recorddate

Effective
Date

440

6.00

March 31,2015

June 29,
2015

472

6.50

September 30,
2015

December 9,
2015

Total Dividend(Millions of yen)

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 26, 2015, include
Notes: ¥2 million to be paid as dividends on the 493,000 shares of treasury stock held to date by the ESOP trust.
Notes: 2. Total dividends, based on a resolution at a meeting of Board of Directors held on November 9, 2015, include
Notes: ¥2 million to be paid as dividends on the 424,000 shares of treasury stock held to date by the ESOP trust.
(2) Dividend with a record date that falls within the current fiscal period under review and an effective date in the following
fiscal period
Dividend perClass ofResource
Total DividendRecordEffective
Resolution
share
stock
of dividend (Millions of yen)
date
Date
(Yen)
Ordinary general meeting
CommonRetained
March 31,
June 30,of shareholders on
472
6.50
stock
earnings
2016
2016
June 29, 2016
Note: Total dividends include ¥2 million to be paid as dividends on the 338,000 shares of treasury stock held to date by
the ESOP trust.

24

The fiscal year 2017

(Consolidated Statements of Cash Flows)
1. Relationship between cash and cash equivalents year ended and the amount of the account stated in the consolidated balance
sheetsMillions of yen
March 31,
March 31,2016
2017
Cash and deposits
13,933
20,240Time deposits with maturity exceeding three months
(547)
(200)
Cash and cash equivalents at end of year
13,386
20,0402. Assets and liabilities of new consolidated subsidiaries
The table below lists the assets and liabilities of UBC (Shanghai) Precision Bearing Manufacturing Co., Ltd. and UBC(Suzhou) Bearing Co., Ltd. at the time of their consolidation through equity acquisition. Also presented are the acquisition priceof UBC (Shanghai) Precision Bearing Manufacturing and net expenditure for the acquisition after accounting for cash and cash
equivalents.
(Millions of yen)
Current assets
1,720
Fixed assets
1,245
Goodwill
384
Current liabilities(1,632)Long-term liabilities(91)
Non-controlling interests(310)
Foreign currency translation adjustments(9)Acquisition price of equity
1,306
Cash and cash equivalents(94)

Acquisition price, less cash and cash equivalents
1,211
Notes: 1. Based on the agreement, the Group is currently taking into consideration working capital and other variables at thetime of the equity acquisition to determine what adjustments in values may need to be made. As of March 31, 2017,
the acquisition price had not yet been definitively determined so the amounts listed above are provisional.
2. As of March 31, 2017, the Group was engaged in a detailed assessment of identifiable assets and liabilities on the dayof the business combination, and the purchase price allocation had not yet been completed. Accordingly, the amounts
listed above are provisional.
3. Major non-cash transactions
Assets and liabilities related to finance leases are as follows.

Millions of yen
March 31,
2017
814
629

Assets related to finance leases
Liabilities related to finance leases

March 31,
2016
808
691

(Business combination related data)
Business combination through acquisition
1. Overview of business combination(1) Names and operations of acquired companies① Name:UBC (Shanghai) Precision Bearing Manufacturing Co., Ltd.
Operations: Manufacture and sale of precision bearings and specialized bearings for various machines② Name:UBC (Suzhou) Bearing Co., Ltd.
Operations: R&D, manufacture and sale of bearings
25The fiscal year 2017(2) Reason for business combination
The Group aims to expand business through improved corporate value and the generation of synergistic effects.
(3) Date of business combination
January 13, 2017 (date of acquisition of equity)(4) Legal form of business combination
Acquisition of equity with cash as consideration(5) Names of companies after combination
No change in names.
(6) Percentage of voting rights acquired
75%(7) Grounds for indentifying the acquirer
Nippon Thompson is the acquirer because it used cash as consideration to acquire an equity stake.
2. Period of results of acquired company included in consolidated financial statements
Because the deemed acquisition date is March 31, 2017, the operating results of the acquired company are not included in
the fiscal year ended March 31, 2017.
3. Acquisition cost of acquired company and breakdown thereof
Consideration for acquisition*
Cash

US$11,304,000
Acquisition cost
US$11,304,000*Based on the agreement, the Group is currently taking into consideration working capital and other variables at the time ofthe equity acquisition to determine what adjustments in values may need to be made. As of March 31, 2017, the acquisition
price had not yet been definitively determined so the amounts listed above are provisional.

4. Amounts and breakdown of major expenses related to the acquisition
Advisory expenses, etc.: ¥246 million
5. Amount of goodwill recognized and related matters(1) Amount of goodwill recognized¥384 million
Because purchase price allocation has not yet been completed as of March 31, 2017, the amount has been provisionallycalculated based on information available at the time.
(2) Reason for recognition
In light of the acquired businesses’ expected excess earnings power in the context of future business expansion, goodwill
has been recognized.
(3) Amortization method and period
The Group uses the straight-line method.
The Group intends to base its determination of the amortization period on the results of the purchase price allocation.
6. Assets accepted and liabilities assumed on the date of business combination(Millions of yen)
Current assets
1,720
Fixed assets
1,245
Total assets
2,965
Current liabilities
1,632
Long-term liabilities
91
Total liabilities
1,723
Note: As of March 31, 2017, the Group was engaged in a detailed assessment of identifiable assets and liabilities on the dayof the business combination, and the purchase price allocation had not yet been completed. Accordingly, the amounts
listed above are provisional.
26

The fiscal year 2017

7. Purchase price allocation
Because the purchase price allocation had not yet been completed as of March 31, 2017, the Group used provisional
accounting methods based on reasonable information available at the time.
8. Calculation method and estimated amount of impact on consolidated statements of income for the fiscal year ended March
31, 2017, assuming the business combination was completed on April 1, 2016.
The estimated amount is not listed due to the difficulty of calculation in the fiscal year ended March 31, 2017.
(Segment Information)
Because the Group manufactures and sells Needle Roller Bearings, Linear Motion Rolling Guides and Machine
Components on an integrated basis, the disclosure of segment information has been omitted.

(Per Share Information)

Yen
March 31,2016
801.58
21.64
19.55

March 31,2017
810.11(4.04)－Net assets per share
Earnings per share
Diluted earnings per share

Notes: 1. Diluted earnings per share for the fiscal year ending March 31, 2017 has not been recorded, because,
although there are residual securities, the Group posted a net loss per share.
Notes: 2. Basis for calculations of earnings per share and diluted earnings per share is as follows.
Millions of yen

Earnings per share
Profit (loss) attributable to owners of parent
Value not attributed to common stock
Profit (loss) attributable to owners of parent pertaining tocommon stock
Average number of shares outstanding at period-end
Diluted earnings per share
Adjustment value of profit attributable to owners of parent
Increase in number of shares outstanding(of which convertible bonds with subscription rights)(of which subscription rights to shares)
Residual shares not included in the calculation of diluted net
income per share because they have no dilutive effect

March 31,2017

March 31,
2016

(291)
－
(291)

1,569
－
1,569

72,077,206shares

72,515,544shares

－
－
－
－

－
7,773,595shares(7,750,387shares)(23,208shares)－－

Notes: 3. With regard to the computation of the number of shares outstanding at period-end, which is used to determine net
assets per share, and the average number of shares outstanding at period-end, which is used to determine earnings
per share for the period , the shares held by the ESOP trust are included in treasury stock.

(Important Subsequent Events)
There are no applicable articles.
27