NIPPON THOMPSON CO., LTD.
Corporate Headquarters: Tokyo
Listed Code: 6480
Li sted Stock Exchange: Tokyo(URL: http://www.ikont.co.jp/eg/)August 7, 2015

Consolidated Financial Reportfor the First Quarter of the Fiscal Year Ending March 31, 2016
<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:
Expected Date of Payment for Dividends:
Preparation of Supplementary Explanation Material for Quarterly Financial Results:
Holding of Presentation Meeting for Quarterly Financial Results:

August 7, 2015
－None
None

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

1. Consolidated Operating Performance for the First Quarter of Fiscal Year Ending March 31, 2016
(From April 1, 2015 to June 30, 2015)(1) Results of Consolidated Operations(Millions of yen)

June 30, 2015
June 30, 2014

Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
incomePercentagechange11,635
11,017

5.6
15.4

1,004
937

7.1
101.0

1,248
862

44.8
(7.2)

Note: Comprehensive income
Three-month period ended June 30, 2015: 1,355 million yen 111.6) %Three-month period ended June 30, 2014:.640 million yen (69.5) %: 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.

June 30, 2015
June 30, 2014

Net income
attributable toowners ofparent
732
478

PercentagechangeNet income
per share(Yen)

53.3(49.8)

10.05
6.57

1

Diluted net
income pershare(Yen)
9.09
5.93

(2) Consolidated Financial Position
Total assets

Net assets

June 30, 2015
94,676
March 31, 2015
93,411
Reference: Shareholders’ equity
As of June 30, 2015:
As of March 31, 2015:

61,38461,099(Millions of yen)
Equity ratio
(%)
64.8
65.4

61,345 million yen
61,062 million yen

2. Dividends(Yen)
Dividends per share
Base dateJune 30

2016(Forecast)
2016
2015

－－

September 30
6.50

December 31－

March 31
6.50

Full Fiscal Year
13.00

5.00

－

6.00

11.00

Note: Change in the current three-month period ended June 30, 2015, to dividend forecast: None3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2016

Six-month period ending
September 30, 2015
Year ending March31, 2016

Six-month period ending
September 30, 2015
Year ending March31, 2016

Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
income(Millions of yen)
Percentagechange23,500

5.9

2,200

23.2

2,200

20.4

48,000

6.7

4,800

23.8

4,800

0.2

Net income
attributable toowners ofparent

Percentagechange

1,400

18.6

19.25

3,000

1.1

41.39

Net income
per share(Yen)

Notes: 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.
Change in the current three-month period ended June 30, 2015, to consolidated operating performance
forecast: None2

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 “1. Other Information” on page 4.
(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
Yes
Yes
None

Note: For further details, please refer to “1. Other Information” on page 4.
(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of June 30, 2015:
As of March 31, 2015:

73,501,425 shares
73,499,875 shares

Number of treasury stock
As of June 30, 2015:
As of March 31, 2015:

615,421 shares
562,594 shares

Average number of shares outstanding at period-end
Three-month period ended June 30, 2015:
Three-month period ended June 30, 2014:

72,920,774 shares
72,805,969 shares

Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 475,000 shares as of June 30, 2015 and 493,000 shares as of March 31, 2015. In addition, treasury stock heldby the ESOP trust is excluded from the calculation of the average number of shares outstanding at period-end, as isother treasury stock. The number of shares excluded from said calculation totaled 481,000 shares for the three-month
period ended June 30, 2015 and 630,666 shares for the three-month period ended June 30, 2014.

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, August 7, 2015. Accordingly, for a wide variety of reasons, there remains thepossibility that actual performance results may differ from projections.

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1.

Other Information(1) Changes in the state of significant subsidiaries during the period
There are no applicable articles.
Changes in the definition of the fiscal period at consolidated subsidiaries:
Previously, the fiscal period of some of consolidated overseas subsidiaries had been 12 months ending December 31.
Due to the inclusion of these subsidiaries’ performance results settled on that day, the Group’s consolidated financial
statements had been adjusted when significant transactions were executed during the period from January 1 to March
31. However, from the first quarter of fiscal year ending March 31, 2016, with the aim of further improving theaccuracy of its consolidated financial information disclosure, the Group decided to change the fiscal period of IKO
International, Inc.; Nippon Thompson Europe B.V.; and IKO Thompson Vietnam Co., Ltd., to 12 months ending
March 31. In addition, the Group decided to perform provisional account settlements for the performance results ofIKO-Thompson (Shanghai) Ltd. on March 31, in concert with its consolidated account settlement.
In step with these changes, first-quarter consolidated retained earnings have been adjusted to reflect gains andlosses recorded by the aforementioned overseas consolidated subsidiaries during the three-month period fromJanuary 1 to March 31, 2015.
(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 thefirst 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)
Adoption of the Accounting Standard for Business Combinations:
From the first quarter of fiscal year ending March 31, 2016, the Group adopted the Accounting Standard for Business
Combinations (Accounting Standards Board of Japan (ASBJ) Statement No. 21, dated September 13, 2013),
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22, dated September 13, 2013)
and Accounting Standard for Business Divestitures (ASBJ Statement No. 7, dated September 13, 2013). Accordingly,
methods for presenting “Net income” etc. were changed, while “Minority interests” was relabeled as“Non-controlling interests.” To reflect these changes, certain items presented in the consolidated financial statementsregarding the three-month and full-year operating results for the previous fiscal year have been reclassified.

4

(Changes in accounting principles that are difficult to distinguish from changes in accounting estimates)
Changes in the depreciation method for property, plant and equipment:
Previously, the depreciation of property, plant and equipment held by Nippon Thompson Co., Ltd. (the “Company”)
had been calculated using the declining-balance method, except for that held by its overseas consolidated subsidiaries,
which had been calculated using the straight-line method. However, the Company decided to use the latter method
for calculating the depreciation of all of its property, plant and equipment from the first quarter of the fiscal year
ending March 31, 2016 onward.
In line with the three-year mid-term business plan that was launched in the first quarter of the fiscal year underreview, the Group is planning to expand its overseas production network by undertaking additional capital investment
in Vietnam.
Through such action, the Group is accelerating its global expansion and is accordingly aiming to step up
overseas production and sales through the development of a balanced production system backed by two flagshipmanufacturing bases in Japan and Vietnam that, supplementing one another’s operations, ensure the Group’s ability towithstanding fluctuations in demand. It is therefore expected that all the Group’s property, plant and equipment will
be steadily utilized during their useful lives. Moreover, plans call for upgrading in-house IT system platforms torealize even more accurate sales estimates and facilitate closer cooperation between the production and sales
functions. This upgrading will help equalize the utilization status of the Group’s production facilities. Taking thesechanges into account, the Company reviewed its methods for depreciating property, plant and equipment held by theGroup.
Based on this review, the Company forecast that the Group’s production facilities will be utilized in a morestable manner going forward. The Company thus decided to adopt the straight-line method for all consolidated Group
companies, thereby unifying the method used from the first quarter of the fiscal year under review, in line with its
belief that this method will better reflect the actual status of the use of its property, plant and equipment.
As a result, depreciation during the current three-month period ended June 30, 2015 decreased ¥124 million
compared with the figure calculated using previous methods. Also, operating income, ordinary income and net
income before income taxes each increased ¥53 million.

52. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of June 30, 2015 and March 31, 2015
Millions of yen
ASSETS

June 30,2015

Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Finished products
Material in process
Raw materialOthers
Less: 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

6March 31,2015

15,748
11,213
2,399
13,410
9,650
5,416
3,773
(25)
61,586

18,871
10,839－13,111
9,327
5,413
4,503
(13)
62,052

9,189
9,334
18,524
1,523

8,850
9,447
18,297
1,320

11,1771,923(58)
13,041
33,089

9,995
1,803
(58)
11,74031,35894,676

93,411Millions of yen
LIABILITIESMarch 31,2015

June 30,2015

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

7,924
4,999
4,207
585
21
4,843
22,582

7,368－3,732930
80
3,786
15,898Long-Term Liabilities:
Corporate bond
Convertible bondLong-term bank loans
Net defined benefit liabilities
OthersTotal long-term liabilities

5,000－
3,969
269
1,470
10,709

5,000
5,000
4,915
333
1,164
16,412TOTAL LIABILITIES

33,29132,311

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

9,533
12,88733,670(302)
55,787

9,532
12,88633,966(260)
56,125

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

4,360－1,095
101
5,558

3,634
0
1,189
113
4,937

Non-controlling interests

3937

TOTAL NET ASSETS

61,38461,09994,676

93,411

NET ASSETSTOTAL LIABILITIES AND NET ASSETS

7

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the first quarter ended June 30, 2015 and 2014

Millions of yen
June 30,2015

June 30,2014

Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses

11,635
7,818
3,816
2,811

11,017
7,6103,406
2,468

Operating Income

1,004

937

58518731309

1066－49126

Ordinary Income

3226－766
1,248

3326133
8201862

Income before Income Taxes

1,248

862

Income Taxes
Net Income
Net Income attributable to non-controlling interests
Net Income attributable to owners of the parent

513
735
2732

376
485
7478

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

Non-Operating Expenses:
Interest expenses
Sales discounts
Foreign currency translation loss
Others8Consolidated Statements of Comprehensive Income
For the first quarter ended June 30, 2015 and 2014

Millions of yen
June 30,2015

June 30,2014

Net Income
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

735

485

726
(0)
(94)
(11)
620
1,355

454－(284)
(15)
154
640

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

1,354
163379(3) Notes on the Premise of a Going Concern
There are no applicable articles.

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

10