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

May 14, 2019

Consolidated Financial Reportfor the Fiscal Year ended March 31, 2019
<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 27, 2019
June 27, 2019
June 28, 2019
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, 2019
(From April 1, 2018 to March 31, 2019)(1) Results of Consolidated Operations
Years ended March 31, 2019 and 2018
Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechange(Millions of yen)
Profitattributable Percentage
to ownerschangeof parent
3,718
121.5
1,678
－

2019
57,570
4.2
4,883
84.4
5,325
122.2
2018
55,228
25.1
2,649
131.2
2,397
164.7
Notes: Comprehensive income
Fiscal year ended March 31, 2019: 1,695 million yen((26.8))%
Fiscal year ended March 31, 2018: 2,317 million yen(71.9)%: Percentage change for net sales, operating profit, ordinary profit, and profit attributable to owners of parent indicate
percentage increase/decrease compared to the same period in the previous year.

2019
2018

Earnings
per share
(Yen)
51.95
23.35

Diluted earnings per
share
(Yen)
51.81
23.30

Reference: Equity in earnings of affiliates
Fiscal year ended March 31, 2019:
Fiscal year ended March 31, 2018:

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

6.2
2.9

Ordinary profit tototal assets
(%)
5.3
2.4

Operating profit to
net sales
(%)
8.5
4.8

The fiscal year 2019(2) Consolidated Financial Position
Years ended March 31, 2019 and 2018

2019
2018

Total assets

Net assets

Equity ratio(%)

101,468
98,49360,19559,66659.1
60.1(Millions of yen)
Net assets
per share(Yen)
837.24828.26

Reference: shareholders’ equity
Fiscal year ended March 31, 2019: 59,987 million yen
Fiscal year ended March 31, 2018: 59,217 million yen(3) Consolidated Cash Flows
Years ended March 31, 2019 and 2018
Operating
Investingactivities
activities
2019
5,158
(5,061)
2018(6,043(1,379)Financing
activities(1,047)(6,696)(Millions of yen)
Cash and cash
equivalents
17,02318,0192. Dividends
Dividends per share
Base date2020(Forecast)
2019
2018

June 30
(Yen)
－
－
－

Base date

Total dividends(Full fiscal year)(Millions of yen)2020(Forecast)
2019
2018

1,080
935

September 30
(Yen)
7.50
7.50
6.50

December 31
(Yen)
－
－
－

Dividends payout
ratio(Consolidated)
(%)
44.8
28.9
55.7

Dividends on
net assets(Consolidated)
(%)
1.8
1.6

2

March 31
(Yen)
7.50
7.50
6.50

Full fiscal year
(Yen)
15.00
15.00
13.00

The fiscal year 2019

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2020
Six-month period ending September 30, 2019, and the fiscal year ending March 31, 2020
Percentage
Operating
Percentage
Net saleschangeprofitchangeSix-month period ending
25,600(12.6)
1,300(48.5)
September 30, 2019Year ending March
53,000(7.9)
3,200(34.5)
31, 2020
Profitattributable toowners ofparent(Millions of yen)
Ordinary
Percentage
profitchange1,500(47.6)

3,500(34.3)

Earnings
per share(Yen)

PercentagechangeSix-month period ending
1,030(50.1)
14.37
September 30, 2019Year ending March
2,400(35.5)
33.47
31, 2020
Note: Percentage change for net sales, operating profit, ordinary profit, 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): None
(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, 2019:73,501,425 sharesFiscal year ended March 31, 2018
73,501,425 shares
Number of treasury stock
Fiscal year ended March 31, 2019:
1,851,802 sharesFiscal year ended March 31, 2018:
2,005,532 shares
Average number of shares outstanding at period-end
Fiscal year ended March 31, 2019:
71,582,315 sharesFiscal year ended March 31, 2018:
71,886,988 shares
Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 358,500 shares as of March 31, 2019 and 480,100 shares as of March 31, 2018. 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 420,450 shares for the fiscal year
ended March 31, 2019 and 89,183 shares for the fiscal year ended March 31, 2018.

3

The fiscal year 2019

Reference: Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2019
(From April 1, 2018 to March 31, 2019)(1) Results of Non-consolidated Operations
Years ended March 31, 2019 and 2018

2019
2018

(Millions of yen)

Net sales

PercentagechangeOperatingprofit51,07545,874

11.3
19.8

4,487
964

PercentagechangeOrdinary
profitPercentagechangeProfitPercentagechange

365.2
4,978
305.4
3,373
316.3
1,227
810
－
－
－
Note: Percentage change for net sales, operating profit, ordinary profit, and profit indicate percentage increase/decrease
compared to the same period in the previous year.

2019
2018

Earnings
per share
(Yen)
47.13
11.27

Diluted earnings
per share
(Yen)
47.01
11.25

(2) Non-consolidated Financial Position
Years ended March 31, 2019 and 2018

2019
2018

Total assets

Net assets

Equity ratio(%)

92,93689,821

53,69353,013

57.7
58.9(Millions of yen)
Net assets
per share(Yen)
747.80740.42

Reference: shareholders’ equity
Fiscal year ended March 31, 2019: 53,579 million yen
Fiscal year ended March 31, 2018: 52,937 million yen

These consolidated financial statements are not subject to quarterly review by auditors
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 14, 2019. 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 2019

5. Operating Results and Financial Position(1) Analysis of Operating Results
In the consolidated fiscal year ended March 31, 2019, the Japanese economy continued to gradually improve overall against a
backdrop of increased private capital investment and corporate profits in addition to a recovery in personal consumption
sustained by improving employment figures and income levels. Overseas, the U.S. economy remained strong, but the outlook
grew more uncertain owing mainly to U.S.-China trade tensions and Brexit issues.
Under these circumstances, in April 2018, the Group launched “IKO Medium-term business plan 2020 CHANGE& CHALLENGE ~Next Stage –ACCOMPLISH–.” With the aims of realizing sustainable growth and establishing a highly
profitable organization, the Group has been implementing a range of measures to solve priority issues throughinter-departmental efforts and improve efficiency in all operations.
From a sales perspective, the Group worked to further cultivate business ties with existing customers in Japan andoverseas and develop new growth markets while focusing on expanding sales of strategic products and reinforcing customer
management using a new system. Moreover, the Group executed a massive overhaul of its corporate website to improvecustomer convenience as part of its efforts to enhance the market presence of the IKO brand through web-based stakeholder
communication.
In terms of product development, the Group worked to expand its lineup of products that provide high added value
from the customer perspective. To this end, the Group developed the long stroke Precision Positioning Table TE series,
designed to help make machinery lighter and more compact, and added variation to Double Hex Hole Cam Follower series. In
addition, the Group took a proactive stance toward R&D aimed at reducing environmental burdens. For example, the Group
engaged in an industry-academia collaboration project involving the co-development of a liquid crystal lubricant that does notevaporate while delivering novel lubricating functions that enhance the durability of machinery and bearings.
From a production standpoint, the Group worked to expand its production capacity by expanding facilities at its
domestic factories and the production subsidiary IKO Thompson Vietnam Co., Ltd. At the same time, the Group strove tocreate an even more efficient production system and, to this end, promoted on-site improvement activities aimed at realizing
ideal production processes.
Turning to the Group’s operational results, the balance of orders received remained high despite some markets
seeing more restrained private capital investment. In the domestic market, net sales increased due mainly to demand forelectronics-related devices and precision machinery. In North America, net sales rose as demand for general industrial
machinery remained firm. In Europe, although demand for electronics-related devices was steady, demand for precision
machinery stagnated, and net sales remained unchanged from the previous fiscal year. In China, due to proactive sales efforts
through local sales subsidiaries and sales agencies, net sales increased. In other regions, net sales declined due partly toeconomic sanctions on Iran despite strong demand in India and ASEAN countries.
As a result, consolidated net sales for the fiscal year under review totaled ¥57,570 million, up 4.2% year on year. On
the earnings front, due mainly to increased revenue and production, operating profit came to ¥4,883 million, up 84.4% year on
year, and ordinary profit came to ¥5,325 million, up 122.2% year on year. Profit attributable to owners of the parent amounted
5The fiscal year 2019to ¥3,718 million, up 121.5% year on year.
In the consolidated fiscal year under review, net production of Needle Roller Bearings and Linear Motion Rolling
Guides was ¥55,928 million based on average sales price, up 26.0% year on year. However, net orders of Needle Roller
Bearings, Liner Motion Rolling Guides and Machine Components were down 21.2% to ¥57,490 million.
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 ¥50,820 million, a 5.9% increase compared with the corresponding period in theprevious fiscal year. Sales of Machine Components fell 6.7% to ¥6,750 million.

Business Segment Information
March 31,2019
Millions of Component
yenpercentages
Needle Roller Bearings, Linear
Motion Rolling Guides
Machine Components
Total net sales

March 31,2018
Millions of Component
Yenpercentages

ChangeMillions ofyen

Percentagechange50,82088.3

47,990

86.9

2,829

5.9

6,750
57,570

11.7
100.0

7,237
55,228

13.1
100.0

(487)
2,342

(6.7)
4.2

(2) Summary of Financial Position
Total assets as of March 31, 2019, totaled ¥101,468 million, an increase of ¥2,974 million compared with the end of theprevious fiscal year. This mainly comprised increases in inventories of ¥4,227 million, tangible fixed assets of ¥2,117 million
and deferred tax assets of ¥1,518 million as well as decreases in cash and deposits of ¥1,080 million, accounts receivable-tradeof ¥918 million and investment securities of ¥2,733 million.
Total liabilities amounted to ¥41,273 million, an increase of ¥2,445 million compared with the end of the previous
fiscal year. This mainly comprised increases in notes and accounts payable-trade of ¥498 million,, accounts payable-other of¥414 million, long-term loans payable of ¥201 million and income taxes payable of ¥1,267 million.
Total net assets amounted to ¥60,195 million, an increase of ¥529 million compared with the end of the previous
fiscal year. This mainly comprised increases in retained earnings of ¥2,709 million as well as decreases in net unrealized
holding gains on available-for-sale securities of ¥1,882 million.

(3) Summary of Cash Flows
Cash and cash equivalents at the end of the fiscal year under review totaled ¥17,023 million, a decrease of ¥995 million
compared with the end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities was ¥5,158 million. The major inflows were profit before income taxes of ¥5,115
million, depreciation and amortization of ¥3,297 million and a decrease in notes and accounts payable-trade of ¥861 million,
while the major outflows was an increase in inventories of ¥4,266 million.
6

The fiscal year 2019

Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥5,061 million. This was mainly due to payments for purchase of property, plant andequipment of ¥4,588 million, payments for purchase of intangible assets of ¥239 million and payments for purchase of
insurance funds of ¥279 million.
Cash Flows from Financing Activities
Net cash used in financing activities totaled ¥1,047 million. The major inflows was proceeds from long-term loans payable of¥3,000 million, while the major outflows were repayments of long-term loans payable of ¥2,798 million and cash dividends
paid of 1,007 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,
2016
65.0
32.6
7.1
21.6

March 31,
2017
58.4
43.6
5.4
43.4

March 31,
2018
60.1
60.9
3.5
43.3

March 31,
2019
59.1
35.9
4.2
60.0

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 Group forecasts that its business environment will remain
uncertain as private capital investment in China and elsewhere is expected to be adjusted in consideration of U.S.-China
trade tensions.
Amid this situation, the Group is working to establish a stable product supply system in preparation for
medium- to long-term growth. We will continue to implement “IKO Medium-term business plan 2020 CHANGE &CHALLENGE ~Next Stage –ACCOMPLISH–” as we strive to achieve sustainable growth and strengthen our earnings
base.
In light of these economic conditions, the Group is forecasting consolidated net sales of ¥53.0 billion, operating
profit of ¥3.2 billion, ordinary profit of ¥3.5 billion and profit attributable to owners of parent of ¥2.4 billion for the year
ending March 31, 2020.
7

The fiscal year 2019

(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 ¥7.5 per share. Including the interim dividend of¥7.5 per share, the planned full-year dividend payment ¥15 per share.
The Company is forecasting a dividend of ¥15 per share (including an interim dividend of ¥7.5 per share) for the
fiscal year ending March 31, 2020.

6. 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.

8

The fiscal year 2019

7. Consolidated Financial Statements
Consolidated Balance Sheets
As of March 31, 2019 and 2018
Millions of yen
March 31,
March 31,
2018
2019

ASSETS
Current Assets:
Cash and deposits
Notes and accounts receivable-tradeFinished products
Material in process
Raw material
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

917,023
15,455
14,461
9,667
5,642
1,389
(19)
63,61918,104
16,373
11,734
8,713
5,095
1,301
(25)
61,296

5,235
9,767
888
2,951
596
2,991
22,430

5,348
9,700
712
2,951
635
966
20,313

287
2,279
2,566

345
2,610
2,956

8,385
1,863
2,652
(49)
12,85137,848

11,119
344
2,511
(48)
13,927
37,196

101,468

98,493

The fiscal year 2019

Millions of yen
March 31,
March 31,
2018
2019

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

11,438
3,179
69
2,691
1,747
60
2,952
22,138

10,939
2,778
68
2,767
479
60
2,484
19,577Long-Term Liabilities:
Corporate bonds
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liabilities
OthersTotal long-term liabilities

10,000
8,317
435
279
13
87
19,13410,000
8,516
498
113
15
104
19,249TOTAL LIABILITIES

41,27338,827

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

9,533
12,87536,253(1,048)57,614

9,533
12,88733,544(1,169)54,795

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

2,568
(0)
(162)
(32)
2,373
114
93

4,450
0
(154)
125
4,422
76
372

TOTAL NET ASSETS

60,19559,666TOTAL LIABILITIES AND NET ASSETS

101,468

98,493

NET ASSETS

10The fiscal year 2019

Consolidated Statements of Income
Years ended March 31, 2019 and 2018
Millions of yen
March 31,
March 31,2018
2019
Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses

57,57039,333
18,237
13,35355,22839,401
15,826
13,177

Operating Profit

4,883

2,649

19
256
53
364
694

14
199
75
162
452

87
77
25
－
61
252

129
233
44
239
57
704

5,325

2,397

1
－
1

39
250
289

141
－
69
211

－
197
－
197

5,115

2,489

1,816
(442)
1,373
3,742
23
3,718

597
217
815
1,674
(4)
1,678

Non-Operating Income:Interest income
Dividend income
Insurance income
Others
Non-Operating Expenses:
Interest expenses
Sales discounts
Loss on retirement of fixed assets
Foreign exchange losses
OthersOrdinary Profit
Extraordinary income:Gain on sales of fixed assets
Compensation for transfer
Extraordinary Losses:
Impairment loss
Dismantlement expenses
Loss on valuation of investment securities

Profit Before Income Taxes
Income Taxes:
Current
DeferredProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent
11

The fiscal year 2019

Consolidated Statements of Comprehensive Income
Years ended March 31, 2019 and 2018
Millions of yen
March 31,
March 31,20182019
ProfitOther 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

3,742

1,674

(1,882)
(0)
(5)
(158)
(2,046)
1,695

474
(6)
(32)
207
643
2,317

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

1,669
25

2,304
12

12

The fiscal year 2019

Statement of Changes in Consolidated Shareholders’ Equity
For the fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2018
Changes during the period
Cash dividends

Treasury stock

Total
shareholders’equity9,533

12,88733,544(1,169)54,795－－(1,007)－(1,007)

－

－

3,718

－

3,718

－

－

－

(0)

(0)

－

－

(1)

121

120

－

(11)

－

－

(11)

－

－

－

－

－

－
9,533

(11)
12,8752,709
36,253121(1,048)2,819
57,614

Profit attributable to ownersof parent
Acquisition of treasury
stock
Disposal of treasury stock
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ capital
Total changes during the period
As of March 31, 2019

Retainedearnings

Accumulated other comprehensive income
Net unrealized
holding gains
onavailable-forsale securities
As of April 1, 2018

4,450

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Total
Accumulated
othercomprehensive
incomeSubscription
rights toshares

Noncontrollinginterests

0

(154)

125

4,422

76

372

59,666Total
net assets

Changes during theperiodCash dividends

－

－

－

－

－

－

－

(1,007)

Profit attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasury
stock
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ capital
Total changes during theperiod

－

－

－

－

－

－

－

3,718

－

－

－

－

－

－

－

(0)

－

－

－

－

－

－

－

120

－

－

－

－

－

－

－

(11)

(1,882)

(0)

(7)

(158)

(2,048)38(279)(2,289)(1,882)

(0)

(7)

(158)

(2,048)

38

(279)

529

2,568

(0)

(162)

(32)

2,373

114

93

60,195

As of March 31, 201913

The fiscal year 2019

For the fiscal year ended March 31, 2018
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2017
Changes during the period
Cash dividends

Treasury stock

Total
shareholders’equity9,533

12,88732,801(801)

54,420

－

－

(935)

－

(935)

－

－

1,678

－

1,678

－

－

－

(420)

(420)

－

－

－

51

51

－

－

－

－

－

－
9,533

－
12,887742
33,544(368)(1,169)374
54,795

Loss 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, 2018

Retainedearnings

Accumulated other comprehensive income
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

3,975

6

(104)

(82)

3,795

30

359

58,605

Cash dividends

－

－

－

－

－

－

－

(935)

Loss attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasurystock
Net changes in items
other thanshareholders’ capital
Total changes during theperiod

－

－

－

－

－

－

－

1,678

－

－

－

－

－

－

－

(420)

－

－

－

－

－

－

－

51

474

(6)

(49)

207

626

46

12

685

474

(6)

(49)

207

626

46

12

1,060

4,450

0

(154)

125

4,422

76

372

59,666

As of April 1, 2017Total
net assets

Changes during theperiodAs of March 31, 2018

14

The fiscal year 2019

Consolidated Statements of Cash Flows
Years ended March 31, 2019 and 2018
Millions of yen
March 31,2019

March 31,2018

Cash Flows from Operating Activities:
Profit before income taxes

5,115

2,489

Depreciation and amortization

3,297

3,094

Increase (Decrease) in allowance for doubtful accounts

(5)

18

Impairment loss

141－

Decrease in net defined benefit liabilities

(45)

(184)

Interest and dividend income

(276)

(214)

Interest expenses

87

129

Loss on retirement of fixed assets

25

44

Compensation for transfer

－

(250)

Dismantlement expenses－

197

Loss (gain) on valuation of investment securities

69－

Decrease (Increase) in notes and accounts
receivable-trade861(3,196)

Decrease (Increase) in inventories(4,266)410

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

(175)

(107)

587

2,704

111

326

Others-net

264

228

Subtotal

5,794

5,688

Interest and dividend income received

276

214

Interest expenses paid

(85)

(139)

Proceeds from compensation for transfer－

250

Dismantlement expenses paid

(197)

－

Income taxes refund(paid)

(628)

29

Net cash provided by operating activities

5,158

6,043

15

The fiscal year 2019

Millions of yen
March 31,2018

March 31,2019
Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment(4,588)(1,539)Payments for purchase of intangible assets

(239)

(143)

Payments for purchase of investment securities

(31)

(18)

Payments for purchase of insurance funds

(279)

(260)

Proceeds from cancellation of insurance funds

66

532

Others-net

949(5,061)(1,379)

Increase in short-term loans payable

－

2,500

Decrease in short-term loans payable－(2,897)

Proceeds from long-term loans payable

3,000

3,420

Repayments of long-term loans payable(2,798)(3,391)

Redemption of bonds－(5,000)Cash dividends paid

(1,007)

(935)

(0)

(420)

(316)

－

76

28

(1,047)(6,696)

Effect of exchange rate change on
cash and cash equivalents

(44)

11

Net decrease in cash and cash equivalents(995)(2,020)Cash and cash equivalents at beginning of year

18,01920,040Cash and cash equivalents at end of year

17,02318,019Net cash used in investing activities
Cash Flows from Financing Activities:

Payments for purchase of treasury stock
Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation
Others-net
Net cash used in financing activities

16

The fiscal year 2019

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

(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 at carrying value (net of
associated costs) . The carrying value and number of such treasury shares were ¥416 million and 480,000 shares
respectively at March 31, 2018 and ¥310 million and 358,000 shares respectively at March 31, 2019.

(3) Carrying Value of Loans Recorded through Application of the Gross Price Method
As of March 31, 2018: ¥420 million; As of March 31, 2019: ¥336 million(Change in presentation)(Change Following the Application of Partial Amendments to Accounting Standard for Tax Effect Accounting)
The Group applies Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February
16, 2018) from April 1, 2019. Deferred tax assets will now be presented under investments and other assets, and deferred tax
liabilities will now be presented under long-term liabilities.
As a result, in the consolidated balance sheet for the previous fiscal year, ¥1,687 million in deferred tax assets undercurrent assets and ¥1,342 million out of the total deferred tax liabilities under long-term liabilities are now included in the ¥344
17

The fiscal year 2019

million in deferred tax assets under investments and other assets, and deferred tax liabilities under long-term liabilities are now
presented as ¥113 million.

(Consolidated Cash Flow Statements)
In the previous fiscal year, payments into time deposits and proceeds from time deposits under cash flows from investing
activities are now included in others-net from the current fiscal year forward due to their diminished importance. The
consolidated financial statements of the previous fiscal year have been re-presented to reflect this change in the presentation
method.
As a result, compared with the consolidated cash flow statements of the previous fiscal year, ¥83 million in
payments into time deposits, ¥201 million in proceeds from time deposits, and outflows of ¥68 million in others-net were
re-presented as ¥49 million in others-net.

(Statement of Changes in Consolidated Shareholders’ Equity)
For the fiscal Year ended March 31, 2019
1. Class and Number of Shares Issued
Increased shares
As of April 1, 2018
during the fiscal year
(Shares)(Shares)Common stock－
73,501,425

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2019
(Shares)

73,501,425

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2019
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
2,005,532
1,030
154,760
1,851,802
Notes: 1. The 358,500 shares held by the ESOP trust are included in treasury stock at March 31, 2019
Notes: 2. The increase of 1,030 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The decrease of 60 shares of treasury stock is due to sales claims of odd lot shares of less than one trading unit.
Notes: 4. The decrease of 33,100 shares of treasury stock is due to exercise of the share option rights.
Notes: 5. The decrease of 121,600 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2018
(Shares)

3.Subscription rights
Type ofsharesBreakdown ofsubject to
subscription rights
subscription
rightsStock Options as
The
Subscription
Company
Rights
Total－

Number of shares subject to subscription rights (Shares)

Balance as ofMarch
31,2019(Millions of
yen)

As of
April 1, 2018

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2019

－

－

－

－

114

－

－

－

－

114

18

The fiscal year 2019

4. Dividend(1) Dividend Paid
Resolution

Class of
Stock

Ordinary general meetingof shareholders on
June 28, 2018

Common stock

Board of directors on
November 12, 2018

Common stock

Dividend per
share
(Yen)

Recorddate

Effective
Date

467

6.50

March 31,2018

June 29,
2018

540

7.50

September 30,
2018

December 12,
2018

Total Dividend(Millions of yen)

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 28, 2018, include¥3 million to be paid as dividends on the 480,100 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 12, 2018, include¥3 million to be paid as dividends on the 431,900 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 28,of shareholders on
540
7.50
stock
earnings
2019
2019
June 27, 2019
Note: Total dividends include ¥2 million to be paid as dividends on the 358,500 shares of treasury stock held to date by
the ESOP trust.

For the fiscal Year ended March 31, 2018
1. Class and Number of Shares Issued
As of April 1, 2017
(Shares)Common stock

73,501,425

Increased shares
during the fiscal year
(Shares)－

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2018
(Shares)

73,501,425

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2018
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
1,638,790
484,842
118,100
2,005,532
Notes: 1. The 480,100 shares held by the ESOP trust are included in treasury stock at March 31, 2018.
Notes: 2. The increase of 342 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The increase of 484,500 shares of treasury stock is due to purchase of treasury stock by the ESOP trust.
Notes: 4. The decrease of 118,100 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2017
(Shares)

19

The fiscal year 2019

3.Subscription rights
Type ofsharesBreakdown ofsubject to
subscription rights
subscription
rightsStock Options as
The
Subscription
Company
Rights
Total－

Number of shares subject to subscription rights (Shares)

Balance as ofMarch
31,2018(Millions of
yen)

As of
April 1, 2017

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2018

－

－

－

－

76

－

－

－

－

76

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, 2017

Common stock

467

6.50

March 31,2017

June 30,
2017

Board of directors on
November 6, 2017

Common stock

467

6.50

September 30,
2017

December 6,
2017

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 29, 2017, include
Notes: ¥0 million to be paid as dividends on the 113,700 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 6, 2017, include
Notes: ¥0 million to be paid as dividends on the 43,000 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 29,of shareholders on
467
6.50
stock
earnings
2018
2018
June 28, 2018
Note: Total dividends include ¥3 million to be paid as dividends on the 480,100 shares of treasury stock held to date by
the ESOP trust.

20

The fiscal year 2019

(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 31,20182019
Cash and deposits
18,104
17,023Time deposits with maturity exceeding three months－(84)
Cash and cash equivalents at end of year
18,01917,023
2. Major non-cash transactions
Assets and liabilities related to finance leases are as follows.

Millions of yen
March 31,
2019
821
505

Assets related to finance leases
Liabilities related to finance leases

March 31,
2018
814
566

(Business combination related data)
Transactions under Common Control
Acquisition of Additional Equity in Subsidiaries
1. Overview of business combination(1) Names and operations of entities related to the business combinations① 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(2) Date of business combination
April 20, 2018(3) Legal form of business combination
Acquisition of equity from non-controlling interests(4) Names of companies after combination
No change in names.
(5) Other matters related to the transaction
The percentage of voting rights associated with the additional equity is 25%, and, with this transaction, both UBC(Shanghai) Precision Bearing Manufacturing Co., Ltd. and UBC (Suzhou) Bearing Co., Ltd became wholly owned
subsidiaries. The additional acquisition was conducted to enhance corporate value by strengthening collaboration within
the Group and accelerating the decision making process.
2. Accounting treatment used
Based on the Accounting Standards Related to Business Combinations and the Application Guidelines Related to
Accounting Standards for Business Combinations and Accounting Standards for Business Spinoffs, the combinations weretreated as transactions with non-controlling interests (a type of transaction under common control).
3. Matters related to the acquisition of additional equity in subsidiaries
Acquisition price and breakdown by type of consideration
Cash consideration of acquisition: US$2,941,000
Acquisition price: US$2,941,000
21

The fiscal year 2019

4. Matters related to change in Nippon Thompson’s equity due to transactions with non-controlling interests(1) Main factor behind the change in capital surplus
Acquisition of additional equity in subsidiaries(2) Amount by which capital surplus declined due to transactions with non-controlling interests¥11 million(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 31,2018
828.2623.35
23.30

March 31,2019
Net assets per share
837.24
Earnings per share
51.95
Diluted earnings per share
51.81
Notes: 1. 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 subscription rights to shares)
Residual shares not included in the calculation of diluted net
income per share because they have no dilutive effect

March 31,2019

March 31,
2018

3,718
－

1,678
－

3,718

1,678

71,582,315shares

71,886,988shares－
189,563(189,563)－
144,828(144,828)－－

Notes: 2. 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.

22