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

February 13, 2024

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2024
<Japanese GAAP>
Representative: Shigeki Miyachi, President and Representative Director
For further information contact: Takanori Kojima, 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:

February 13, 2024
－Yes
None

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

1. Consolidated Operating Performance for the Third Quarter of Fiscal Year Ending March 31, 2024
(From April 1, 2023 to December 31, 2023)(1) Results of Consolidated Operations(Millions of yen)

December 31, 2023
December 31, 2022

Net sales

PercentagechangeOperatingprofit

PercentagechangeOrdinaryprofit

Percentagechange42,13952,129(19.2)
12.93,035
7,486(59.5)
94.4

3,888
8,290(53.1)
80.3

Notes: Comprehensive income
Nine-month period ended December 31, 2023:
4,942 million yen(25.9) %Nine-month period ended December 31, 2022:
6,672 million yen
59.5 %: 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.

December 31, 2023
December 31, 2022

Profitattributable toowners ofparent
2,267
5,753

PercentagechangeEarnings
per share(Yen)(60.6)
59.4

31.86
80.85

1

Dilutedearnings
per share(Yen)
31.76
80.58

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Third Quarter Ended December 31, 2023

(2) Consolidated Financial Position
Total assets(Millions of yen)
Equity ratio
Net assets(%)
per share (Yen)
62.8
1,059.05
62.6
1,003.28

Net assets

December 31, 2023
118,427
74,532
March 31, 2023
114,347
71,662
Reference: Shareholders’ equity
As of December 31, 2023: 74,417 million yen
As of March 31, 2023:71,541 million yen

2. Dividends(Yen)
Base date2024(Forecast)
2024
2023

June 30

September 30

Dividends per share
December 31

－－

9.50
9.00

－－March 31
9.50

Full Fiscal Year
19.00

10.00

19.00

Note: Change in dividend projection: None

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2024

Year ending March31, 2024

Year ending March31, 2024

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profit(Millions of yen)
Percentagechange55,500(18.7)

3,500(63.0)

4,700(55.2)

Profitattributable toowners ofparent

PercentagechangeEarnings
per share(Yen)

2,800(62.5)

39.56

Notes: 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.
: Changes from forecasts most recently announced: None2

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Third Quarter Ended December 31, 2023

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 on page 8.
(3) 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
Yes
None

Note: For further details, please refer on page 8.
(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of December 31, 2023:
As of March 31, 2023:

73,501,425 shares
73,501,425 shares

Number of treasury stock
As of December 31, 2023:
As of March 31, 2023:

3,233,093 shares
2,193,912 shares

Average number of shares outstanding at period-end
Nine-month period ended December 31, 2023:
Nine-month period ended December 31, 2022:

71,186,479 shares
71,162,037 shares

Note: The number of treasury stock as of the fiscal year-end includes Nippon Thompson shares held by the share-issuing trustaccount for executives and by the employee stock ownership plan (ESOP) trust account (1,548,100 shares as of 3Q
FY2024 and 1,250,000 shares as of March 31, 2023). In the calculation of the average number of shares during thefiscal year (cumulative for the quarter), Nippon Thompson shares held by the share-issuing trust account for executives
and the ESOP trust account are included in excluded treasury stock (1,263,821 shares as of 3Q FY2024 and 1,385,377
shares as of 3Q FY2023).

These consolidated financial report 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, February 13, 2024. Accordingly, for a wide variety of reasons, there remains
the possibility that actual performance results may differ from projections.

3NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Third Quarter Ended December 31, 2023

5. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of December 31, 2023 and March 31, 2023
Millions of yen
March 31,
December 31,
2023
2023

ASSETS
Current Assets:
Cash and deposits
Notes and accounts receivable-tradeFinished products
Work in process
Raw material
OthersLess: Allowance for doubtful accounts
Total current assets
Non-Current 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 non-current assets
TOTAL ASSETS

420,258
13,70020,06012,396
9,368
2,615
(10)
78,38818,84817,272
17,477
11,882
8,823
2,329
(10)
76,624

10,182
13,44823,6301,141

9,849
12,60422,453
1,056

10,847
4,446(26)
15,26640,038

9,113
5,126
(26)
14,212
37,723

118,427

114,347

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Third Quarter Ended December 31, 2023

Millions of yen
March 31,
December 31,2023
2023

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

8,212
1,250
5,000
5,134
253
54
6,218
26,123

11,595
－－
3,786
2,813
92
6,050
24,337

Non-Current Liabilities:
Corporate bonds
Long-term borrowings
Net defined benefit liabilities
Provision for share-based remuneration for directors
OthersTotal non-current liabilities

5,000
11,20531
159
1,374
17,771

10,000
6,718
30
110
1,488
18,348TOTAL LIABILITIES

43,89542,685

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

9,533
12,88645,044(1,568)65,895

9,533
12,88644,191(917)
65,693

Accumulated Other Comprehensive Income:
Valuation difference 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

4,340
4
4,203
(25)
8,522
114

3,115
(2)
2,761(27)
5,847
121

TOTAL NET ASSETS

74,532

71,662TOTAL LIABILITIES AND NET ASSETS

118,427

114,347

NET ASSETS

5NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Third Quarter Ended December 31, 2023

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income

For the nine-month period ended December 31, 2023 and 2022
Millions of yen
December 31,
December 31,2022
2023
Net Sales
Cost of Sales

42,13927,891
14,248
11,212

52,12933,391
18,737
11,251

3,035

7,486

30
238
444
250
963

21220
394
274
910

84
27
111

7827106

Ordinary Profit

3,888

8,290Profit Before Income Taxes

3,888

8,290

1,620
2,267－
2,267

2,537
5,753－
5,753

Gross Profit
Selling, General and Administrative Expenses
Operating Profit
Non-Operating Income:Interest income
Dividend income
Foreign exchange gains
Others

Non-Operating Expenses:
Interest expenses
OthersIncome Taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Third Quarter Ended December 31, 2023

Consolidated Statements of Comprehensive Income

For the nine-month period ended December 31, 2023 and 2022
Millions of yen
December 31,
December 31,
2022
2023
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
Breakdown:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

7

2,267

5,753

1,224
6
1,441
1
2,674
4,942(328)
－
1,313
(64)
919
6,672

4,942
－

6,672－

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Third Quarter Ended December 31, 2023

(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.

(5) Application of the special accounting methods for the presentation of the quarterly consolidated financialstatements

Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of deferred tax accounting
on profit before income taxes in the current consolidated fiscal year, including the third quarter, and multiplying profit before
income taxes by said estimated effective tax rate.
(6) Changes in accounting estimates
Evaluation of Inventory Assets
To determine the value of inventory assets, the Company formulates evaluation rates based on the inventory storage
periods for each product, as well as past sales and consumption records. Based on these rates, the value of stagnant inventoryis written down accordingly.
Five years have passed since a mission-critical system was introduced in the 69th fiscal period, so we conducted a survey
based on accumulated detailed data to reassess the status of any stagnation within categories of inventory, categories ofproducts, and multiple categories of standards and special types. We also conducted a study of the future consumption
probability in light of past sales and consumption conditions. In line with the current status, we revised the evaluation rates forstagnation. From the first quarter of the fiscal year under review, stagnant inventory is now written down based on the newevaluation rates to more appropriately reflect the declining profitability related to inventory assets in the financial position andoperating results.
As a result, in comparison with previous methods, cost of sales in the third quarter of the fiscal year under review increased¥564 million while operating income, ordinary income, and income before income taxes each decreased by a similar amount.

8