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

November 10, 2014

Consolidated Financial Reportfor the Second Quarter of the Fiscal Year Ending March 31, 2015
<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 to Submit Quarterly Annual Securities Report:
Scheduled Date to Begin Dividend Payments:
Preparation of Supplementary Explanation Material for Quarterly
Financial Results:
Holding of Presentation Meeting for Quarterly Financial Results:

November 12, 2014
December 10, 2014
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 Six-month Period Ended September 30, 2014
(From April 1, 2014 to September 30, 2014)(1) Results of Consolidated Operations(Millions of yen)

September 30, 2014
September 30, 2013

Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
incomePercentagechange22,193
19,372

14.6
1.1

1,786
,605

195.2
(36.9)

1,827
1,187

54.0
37.5

Note: Comprehensive income
Six-month period ended September 30, 2014:
Six-month period ended September 30, 2013:

September 30, 2014
September 30, 2013

Net income

Percentagechange

1,180
1,174

0.5
285.8

1,344) million yen
3,118) million yen
Net income
per share
(Yen)
16.20
16.16

(56.9).8%− .8%

Diluted net
income per share
(Yen)
14.65
14.60

Note: Percentage change for net sales, operating income, ordinary income, and net income indicate percentage
increase/decrease compared to the same period in the previous year.
Note: Changes in accounting policies arising from a revision of accounting standards have been retrospectively applied to theresults of consolidated operations for the six-month period ended September 30, 2013.

1

(2) Consolidated Financial Position

September 30, 2014
March 31, 2014

Total assets

Net assets

89,292
86,89157,09656,121

Reference: Shareholders’ equity
As of September 30, 2014:
As of March 31, 2014:(Millions of yen)
Equity ratio
(%)
63.9
64.6

57,072 million yen
56,121 million yen

2. Dividends(Yen)
Base dateJune 30

September 30

2015(Forecast)
2015
2014

−
−

5.00
5.00

Dividends per share
December 31−−

March 31
5.00

Full Fiscal Year
10.00

5.00

10.00

Note: Change in the current three-month period ended September 30, 2014, to dividend forecast: None

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2015

Year ending March
31, 2015

Year ending March
31, 2015

Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
income(Millions of yen)
Percentagechange44,000

12.1

3,700

−

3,700

331.6

Net income

PercentagechangeNet income
per share
(Yen)

2,400

321.9

32.94

Notes: Percentage change for net sales, operating income, ordinary income, and net income indicate percentage increase
compared to the same period in the previous year.
Notes: Change in the current three-month period ended September 30, 2014, to consolidated operating performance
forecast: Yes

2

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) Application of the special accounting methods for the presentation of the quarterly consolidated financial statements: Yes
Note: For further details, please refer to “2. Other Information” on page 6.
(3) Changes in accounting policies and accounting estimates, and restatements
Changes in accounting policies arising from revision of accounting standards:
Changes other than those in above:
Changes in accounting estimates:
Restatements:

Yes
None
None
None

Note: For further details, please refer to “2. Other Information” on page 6.
(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of September 30, 2014:
As of March 31, 2014:

73,499,875 shares
73,499,875 shares

Number of treasury stock
As of September 30, 2014:
As of March 31, 2014:

633,533 shares
710,420 shares

Average number of shares outstanding at period-end
Six-month period ended September 30, 2014:
Six-month period ended September 30, 2013:

72,832,661 shares
72,691,822 shares

Note: From the consolidated accounting period ended June 30, 2014, in tandem with changes in accounting policies
arising from a revision of accounting standards, the number of treasury stock includes treasury stock held by the
ESOP trust. This resulted in the addition to treasury stock of 566,000 shares as of September 30, 2014 and 721,000
shares as of September 30, 2013. In addition, treasury stock held by the ESOP trust is excluded from the calculationof the average number of shares outstanding at period-end, as is other treasury stock. The difference between the oldand new calculation of the average number of shares is thus 602,333 shares for the six-month period ended
September 30, 2014 and 748,166 shares for the six-month period ended September 30, 2013.

Disclosure with Regard to Implementation of Quarterly Review Procedures
Although falling outside quarterly review procedures based on the Financial Instruments and Exchange Law, thesefinancial results are subjected to such review procedures, which are completed at the time of disclosure.
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, November 10, 2014. 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“1.Operating Results and Financial Position (3) Outlook” on pages 5.

3

1. Operating Results and Financial Position(1) Analysis of Operating Results
In the six-month period ended September 30, 2014, the Japanese economy continued to gradually recover. Corporate
performance improved, backed by the depreciation of the yen, despite a temporary drop in personal consumption caused by amarket recoil following the last minute surge in demand preceding the consumption tax hike at the start of the period. Overseas,
the economy of the United States remained firm, and growth stayed steady in Asia. However, despite some signs ofimprovement, recovery in Europe remained weak.
Under these circumstances, the Group worked to cultivate demand in global markets and implemented various
initiatives aimed at strengthening competitiveness in future growth markets.
From a sales perspective, the Group held numerous private shows and small-scale exhibitions, actively
implementing its “user-centered, proposal-based sales approach”. In overseas markets, the Group worked to expand its sales
network in emerging economies, including those in the Middle East and Central and South America.
From a production standpoint, the Group enhanced the production capacity and product lineup of manufacturingsubsidiary IKO Thompson Vietnam Co., Ltd. and strove to strengthen cost competitiveness by optimizing global procurement
operations.
Turning to the Group’s operational results, domestic demand was firm, particularly in electronics-related industries
in the areas of semiconductor manufacturing equipment and electronic component mounting equipment, as well as for machine
tools. Overseas, supported by heightened export competitiveness due to the depreciation of the yen, demand, especially that
related to electronics, such as, semiconductor manufacturing equipment and electronic component mounting equipment, andprecision machinery, improved steadily in Europe and the United States. In Asia, sales rose as the Group pursued aggressive
sales activities in China and through a sales subsidiary newly established in Thailand in April 2014.
As a result, the Group’s net sales for the six-month period under review increased 14.6% compared with thecorresponding period of the previous fiscal year to ¥22,193 million. On the earnings front, operating income jumped 195.2% to¥1,786 million, due largely to increased production and sales. Ordinary income rose 54.0% to ¥1,827 million, and net income
edged up 0.5% to ¥1,180 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 and Linear Motion Rolling Guides totaled ¥19,618 million, a 15.2% increase
compared with the corresponding period in the previous fiscal year. Sales of Machine Components rose 9.8% to ¥2,574 million.

Business Segment Information
Six-month period ended
September 30, 2014
Millions ofComponentyenpercentages
Needle Roller Bearings, Linear
Motion Rolling Guides
Machine Components
Total net sales

Six-month period ended
September 30, 2013
Millions ofComponentyenpercentages

ChangeMillions ofyen

Percentagechange19,61888.4

17,028

87.9

2,590

15.2

2,574

11.6

2,344

12.1

230

9.8

22,193100.0

19,372

100.0

2,820

14.6

4

(2) Analysis of Financial Position
Total assets as of September 30, 2014, totaled ¥89,292 million, an increase of ¥2,400 million compared with the end of theprevious fiscal year. This mainly comprised growth in cash and deposits of ¥924 million, notes and accounts receivable-trade of¥1,390 million and investment securities of ¥1,515 million as well as a decrease in inventories of ¥1,999 million.
Total liabilities amounted to ¥32,195 million, an increase of ¥1,425 million compared with the end of the previous
fiscal year. This mainly comprised growth in notes and accounts payable-trade of ¥1,068 million and long-term bank loans of¥448 million as well as a decrease in short-term bank loans of ¥600 million.
Total net assets amounted to ¥57,096 million, an increase of ¥975 million compared with the end of the previous
fiscal year. The main components were increases in retained earnings of ¥769 million and net unrealized holding gains onavailable-for-sale securities of ¥718 million as well as a decrease in foreign currency translation adjustments of ¥538 million.

Cash Flows
Cash and cash equivalents as of September 30, 2014 totaled ¥15,840 million, an increase of ¥1,549 million compared with theend of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities was ¥3,565 million. The major components were income before income taxes of¥1,889 million, depreciation and amortization of ¥1,277 million, a decrease in inventories of ¥1,742 million, an increase in notes
and accounts payable-trade of ¥1,155 million and an increase in notes and accounts receivable-trade of ¥1,458 million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥1,498 million. This result was primarily attributable to the purchase of property,
plant and equipment.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥485 million. This was mainly due to a decrease in short-term bank loans of ¥600
million, proceeds from long-term bank loans of ¥2,000 million, repayments of long-term bank loans of ¥1,551 million and cash
dividends paid of ¥367 million.

(3) Outlook
Going forward, concerns remains about economic stagnation in Europe and the slowing of growth in China, but overall
demand is forecast to remain steady. In light of these factors and the operating results for the six-month period ended September
30, 2014, the Group is forecasting consolidated net sales of ¥44.0 billion, operating income of ¥3.7 billion, ordinary income of¥3.7 billion and net income of ¥2.4 billion for the year ending March 31, 2015.

5

2.

Other Information(1) Changes in the state of significant subsidiaries during the period
There are no applicable articles. While there was no change in the state of significant subsidiaries, IKO Thompson Asia
Co., Ltd. was established in the three-month period ended June 30, 2014 and included in the scope of consolidation.
(2) Application of the special accounting methods for the presentation of the quarterly consolidated financial statements
Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of deferred tax
accounting on income before income taxes and minority interests in the current consolidated fiscal year, including
the second quarter, and multiplying income before income taxes and minority interests by said estimated effective
tax rate.
(3) Changes in accounting policies and accounting estimates, and restatements(Changes in accounting policies)• As of April 1, 2014, the Group adopted the provisions stipulated in the main clause of Article 35 of the AccountingStandard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ), Statement No. 26, issued on May 17,
2012; hereinafter “Retirement Benefits Accounting Standards”) and in the main clause of Article 67 of the Guidance on
Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, issued on May 17, 2012; hereinafter the“Guidance”). The Group also revised the determination of retirement benefit liabilities and current service cost.
Accordingly, the Group changed the method of attributing expected benefit to periods from the straight-line basis to thebenefit formula basis as well as amended the determination method of the discount rate from that based on the remaining
working lives to a single weighted average discount rate.
The adoption of the Retirement Benefits Accounting Standards and its Guidance is subject to the transitional
treatment stipulated by Article 37 of the Retirement Benefits Accounting Standards. Accordingly, the impact of theabovementioned revision in calculation methods of retirement benefit liability and current service cost was included inretained earnings at the beginning of the fiscal year under review.
As a result, as of April 1, 2014, net defined benefit liabilities increased ¥67 million, and retained earnings decreased¥43 million. The influence of these changes on profit or loss for the six-month period ended September 30, 2014 wasimmaterial.
• As of April 1, 2014, Nippon Thompson Co., Ltd. (the “Company”) adopted the “Practical Solution on Transactions ofDelivering the Company’s Own Stock to Employees etc. through Trusts” (Practical Issue Task Force (PITF) No. 30,
December 25, 2013). When treasury stock is delivered to the trust, the Company recognizes the balance. The following
are recorded as liabilities: profit or loss related to sales of shares by the trust to the Employee Stock Ownership
Association, dividends paid from the Company on shares held by the trust, and net expenses related to the trust. Thesechanges in accounting policies have been retrospectively applied to the quarterly consolidated financial statement for thesix-month period ended September 30, 2013 and consolidated financial statement for the fiscal year ended March 31,
2014. Furthermore, the effect of the retrospective application to the six-month period ended September 30, 2013 and thefiscal year ended March 31, 2014 was immaterial.

63. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of September 30, 2014 and March 31, 2014
Millions of yen
ASSETS

September 30,
2014

Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Finished products
Material in process
Raw material
OthersLess: Allowance for doubtful accounts
Total current assets
Fixed Assets:
Tangible fixed assets:
Machinery and vehicles
OthersTotal tangible fixed assets
Intangible fixed assets
Investments and other assets:
Investment securities
OthersLess: Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

7March 31,2014

15,673
10,9681,400
12,763
9,304
5,513
4,184
(17)
59,78914,748
9,577−
14,028
9,613
5,938
3,986
(19)
57,8738,650
9,128
17,778
814

9,309
9,392
18,701
609

9,106
1,852
(49)
10,90929,502

7,591
2,164
(49)
9,706
29,01789,292

86,891Millions of yen
LIABILITIES

September 30,
2014

March 31,
2014

Current Liabilities:
Notes and accounts payable-trade
Short-term bank loans
Current portion of long-term bank loans
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
OthersTotal current liabilities

6,981
−
3,971
673
40
3,486
15,152

5,913
600
2,859
742
70
2,821
13,007Long-Term Liabilities:
Corporate bond
Convertible bondLong-term bank loans
Net defined benefit liabilities
OthersTotal long-term liabilities

5,000
5,000
5,656
749
637
17,043

5,000
5,000
6,319
786
656
17,762TOTAL LIABILITIES

32,19530,770Shareholders’ Equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

9,532
12,88632,547(290)
54,676

9,532
12,886
31,777(322)
53,874

Accumulated Other Comprehensive Income:Net unrealized holding gains on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

2,884
(0)
(485)
(3)
2,395

2,165
−
53
27
2,246

24

−

TOTAL NET ASSETS

57,09656,121TOTAL LIABILITIES AND NET ASSETS

89,292

86,891

NET ASSETS

Minority interests8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the six-month period ended September 30, 2014 and 2013

Millions of yen
September 30,
September 30,
2013
2014
Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses

22,193
15,3386,855
5,068

19,372
14,215
5,157
4,552

Operating Income

1,786

605

15
64
−
98
178

5
55
520
138
719

66
54
15
136
1,827

86
26
24
137
1,187

48
12
61
1,889

−
160
160
1,347

695
1,193
13
1,180

172
1,174
−
1,174

Non-Operating Income:Interest income
Dividend income
Foreign currency translation gain
Others

Non-Operating Expenses:
Interest expenses
Sales discounts
OthersOrdinary Income
Extraordinary Income:Gain on sales of fixed assets
Gain on sales of investment securities
Income before Income Taxes
Income Taxes
Income before Minority Interests
Minority Interests in Income
Net Income

9Consolidated Statements of Comprehensive Income
For the six-month period ended September 30, 2014 and 2013

Millions of yen

Income before Minority Interests
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
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

10

September 30,
2014

September 30,
2013

1,193

1,174

718
(0)
(537)
(30)
150
1,344

834
(0)
1,110
−
1,944
3,118

1,329
14

3,118
−

(3) Consolidated Statements of Cash Flows
For the six-month period ended September 30, 2014 and 2013

Millions of yen
September 30,
September 30,
2013
2014
Cash Flows from Operating Activities:
Income before income taxes
Depreciation and amortization
Decrease in account reserve
Decrease in net defined benefit liabilities
Interest and dividend income
Interest expenses
Foreign currency translation gain
Loss on retirement of tangible fixed assets
Gain on sales of investment securities
Increase in notes and accounts receivable-trade
Decrease in inventories
Increase in notes and accounts payable-trade
Increase in accrued expenses
Others-net
SubtotalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment
Proceeds from sales of investment securities
Others-net
Net cash used in investing activities

11

1,889
1,277
(31)
(150)
(80)
66
(58)
10
(12)
(1,458)
1,742
1,155
221
(331)
4,240

1,347
1,303
(231)
−
(60)
86
(395)
13
(160)
(126)
2,622
924
20
171
5,514

80
(34)
(720)
3,565

59
(83)
(119)
5,371

(571)
19
(946)
(1,498)

(626)
248
(655)
(1,032)

Millions of yen
September 30,
September 30,
2013
2014
Cash Flows from Financing Activities:
Net decrease in short-term bank loans
Proceeds from long-term bank loans
Repayments of long-term bank loans
Proceeds from share issuance to minority shareholders
Cash dividends paid
Others-net
Net cash used in financing activities
Foreign currency translation adjustments on cash andcash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of period

12

(600)
2,000
(1,551)
9
(367)
23
(485)

−
−
(1,528)−(293)
26(1,796)

(31)
1,549

199
2,741

14,29015,8409,967
12,709(4) Notes on the Premise of a Going Concern
There are no applicable articles.

(5) Notes on the Statement of Changes in Consolidated Shareholders’ Equity
There are no applicable articles.

13