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

February 9, 2016

Consolidated Financial Reportfor the Nine-Month Period Ended December 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:

February 10, 2016
－None
None

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

1. Consolidated Operating Performance for the Nine-Month Period Ended December 31, 2015
(From April 1, 2015 to December 31, 2015)(1) Results of Consolidated Operations(Millions of yen)

December 31, 2015
December 31, 2014

Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
incomePercentagechange32,90333,512

(1.8)
14.4

2,528
3,097

(18.4)
156.2

2,729
4,142(34.1)
94.2

Note: Comprehensive income
Nine-month period ended December 31, 2015:953) million yen(71.2) 8%
Nine-month period ended December 31, 2014:3,310) million yen(19.5) 8%: Percentage change for net sales, operating income, ordinary income, and net income attributable toowners of parent indicate percentage increase/decrease compared to the same period in the previous year.

December 31, 2015
December 31, 2014

Net income
attributable toowners ofparent
1,635
2,777

PercentagechangeNet income
per share(Yen)(41.1)
59.8

22.54
38.121

Diluted net
income pershare(Yen)
20.36
34.45

(2) Consolidated Financial Position
Total assets
December 31, 2015
92,897
March 31, 2015
93,411
Reference: Shareholders’ equity
As of December 31, 2015:
As of March 31, 2015:

Net assets
60,19861,099(Millions of yen)
Equity ratio
(%)
64.7
65.4

60,144 million yen
61,062 million yen

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

September 30

December 31

2016(Forecast)
2016
2015

－－

6.50
5.00

－－

March 31
6.50

Full Fiscal Year
13.00

6.00

11.00

Note: Change in the current three-month period ended December 31, 2015, to dividend forecast: None

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2016

Year ending March
31, 2016

Net sales

PercentagechangeOperatingincome

PercentagechangeOrdinaryincome(Millions of yen)
Percentagechange43,200(3.9)

2,800(27.8)

3,000(37.4)

Net income
attributable toowners ofparent

PercentagechangeNet income
per share(Yen)Year ending March
1,800(39.3)
24.82
31, 2016
Notes: Percentage change for net sales, operating income, ordinary income, and net income attributable toowners of parent indicate percentage increase/decrease compared to the same period in the previous year.
: Change in the current three-month period ended December 31, 2015, 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 “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 December 31, 2015:
As of March 31, 2015:

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

Number of treasury stock
As of December 31, 2015:
As of March 31, 2015:

1,169,221 shares
562,594 shares

Average number of shares outstanding at period-end
Nine-month period ended December 31, 2015:
72,570,378 shares
Nine-month period ended December 31, 2014:
72,852,262 shares
Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 367,000 shares as of December 31, 2015 and 493,000 shares as of March 31, 2015. In addition, treasury
stock held by the ESOP trust is excluded from the calculation of the average number of shares outstanding atperiod-end, as is other treasury stock. The number of shares excluded from said calculation totaled 437,000 sharesfor the nine-month period ended December 31, 2015 and 581,555 shares for the nine-month period ended
December 31, 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, February 9, 2016. Accordingly, for a wide variety of reasons, there remains thepossibility that actual performance results may differ from projections.

3

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, third-quarter consolidated retained earnings have been adjusted to reflect gains
and losses 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 thethird 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 as4

“Non-controlling interests.” To reflect these changes, certain items presented in the consolidated financial statements
regarding the nine-month and full-year operating results for the previous fiscal year have been reclassified.

(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
under review, 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 amore stable 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 withits 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 nine-month period ended December 31, 2015 decreased ¥375 million
compared with the figure calculated using previous methods. Also, operating income increased ¥160 million, while
ordinary income and net income before income taxes each increased ¥161 million.

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

As of December 31, 2015 and March 31, 2015
Millions of yen
ASSETS

December 31,
2015

Current Assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Finished productsMaterial 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

6March 31,
2015

12,529
9,948
2,699
13,919
9,773
5,677
3,782
(25)
58,30518,871
10,839－13,111
9,327
5,413
4,503
(13)
62,052

10,418
10,538
20,957
1,824

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

9,751
2,117
(58)
11,81034,591

9,995
1,803
(58)
11,74031,35892,897

93,411Millions of yen
March 31,December 31,2015
2015

LIABILITIESCurrent 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

7,087
4,999
3,516
533
63
5,191
21,392

7,368
－
3,732
930
80
3,786
15,898Long-Term Liabilities:Corporate bond
Convertible bondLong-term bank loans
Net defined benefit liabilities
OthersTotal long-term liabilities

5,000－
5,050
152
1,102
11,306

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

32,69832,311

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

9,533
12,887
34,100(632)55,887

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 hedgesForeign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

3,393
(0)
785
78
4,256

3,634
0
1,189
113
4,937

Subscription rights to shares

18－Non-controlling interests

3537

TOTAL NET ASSETS

60,19861,099TOTAL LIABILITIES AND NET ASSETS

92,897

93,411

NET ASSETS

7

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

For the nine-month period ended December 31, 2015 and 2014
Millions of yen
December 31,2015

December 31,2014

Gross ProfitSelling, General and Administrative Expenses

32,903
21,831
11,071
8,543

33,512
22,811
10,7007,603

Operating Income

2,528

3,097

16147
80
83
83
410

28
107
812
200
107
1,255

88
78
42
209
2,729

99
83
27
210
4,142－
－－

102
12
115

2
2
2,726

－
－
4,257

1,088
1,638
2
1,635

1,460
2,797
192,777

Net Sales
Cost of Sales

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

Non-Operating Expenses:
Interest expenses
Sales discounts
OthersOrdinary Income
Extraordinary Income:Gain on sales of fixed assets
Gain on sales of investment securities

Extraordinary losses
Loss on sales of fixed assets
Income before Income Taxes
Income Taxes
Net Income
Net Income attributable to non-controlling interests
Net Income attributable to owners of the parent8

Consolidated Statements of Comprehensive Income

For the nine-month period ended December 31, 2015 and 2014
Millions of yen
December 31,2015
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
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

9

December 31,
2014

1,638

2,797

(240)
(0)
(408)
(35)
(684)
953

778
－
(219)
(45)
513
3,310

955
(1)

3,287
23

(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