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

November 12, 2021

Consolidated Financial Reportfor the Second Quarter of the Fiscal Year Ending March 31, 2022
<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:

November 12, 2021
December 9, 2021
Yes
Yes (Targeted at institutional investors and analysts)

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

1. Consolidated Operating Performance for the Six-month Period Ended September 30, 2021
(From April 1, 2021 to September 30, 2021)(1) Results of Consolidated Operations(Millions of yen)

September 30, 2021
September 30, 2020

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechange30,09020,25848.5(20.4)

2,257
(748)

―
―

2,533
(757)

―
―

Note: Comprehensive income
Six-month period ended September 30, 2021:
2,524 million yen―%
Six-month period ended September 30, 2020:
99 million yen―%: 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.

September 30, 2021
September 30, 2020

Profitattributable toowners ofparent2,171(588)

PercentagechangeEarnings
per share
(Yen)

―
―

30.62
(8.20)

1

Dilutedearnings
per share
(Yen)
30.50
―

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

(2) Consolidated Financial Position
Total assets(Millions of yen)
Equity ratio
Net assets(%)
per share (Yen)
57.0
867.36
58.7
836.43

Net assets

September 30, 2021
108,054
61,690March 31, 2021
100,946
59,425
Reference: Shareholders’ equity
As of September 30, 2021: 61,545 million yen
As of March 31, 2021:
59,276 million yen

2. Dividends(Yen)
Base date2022(Forecast)
2022
2021

June 30

September 30

－
－

6.00
4.00

Dividends per share
December 31－

March 31
7.00

Full Fiscal Year
13.00

－

4.00

8.00

Note: Change in the current three-month period ended September 30, 2021, to dividend forecast: Yes

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2022

Year ending March
31, 2022

Year ending March
31, 2022

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profit(Millions of yen)
Percentagechange61,000

37.6

5,100

―

5,500

―

Profitattributable toowners ofparentPercentagechangeEarnings
per share
(Yen)

4,200

―

59.18

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.
Notes: Change in the current three-month period ended September 30, 2021, to consolidated operating performance
forecast: Yes

2

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

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 13.
(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:

Yes
None
None
None

Note: For further details, please refer on page 13.
(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of September 30, 2021:
As of March 31, 2021:

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

Number of treasury stock
As of September 30, 2021:
As of March 31, 2021:

2,544,063 shares
2,632,602 shares

Average number of shares outstanding at period-end
Six-month period ended September 30, 2021:
Six-month period ended September 30, 2020:

70,921,580 shares
71,772,645 shares

Note: The number of treasury stock as of the fiscal year-end includes Nippon Thompson shares held by the share-issuing trust
account for executives and by the employee stock ownership plan (ESOP) trust account (1,554,500 shares as of 2Q
FY2022 and 1,636,800 shares as of March 31, 2021). In the calculation of the average number of shares during the
fiscal 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 (1,590,433 shares as of 2Q FY2022 and 421,366
shares as of 2Q FY2021).

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, November 12, 2021. Accordingly, for a wide variety of reasons, there remains
the possibility that actual performance results may differ from projections. For performance forecasts, please refer on
pages 6.

3

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

5. Operating Results and Financial Position(1) Analysis of Operating Results
In the six-month period ended September 30, 2021, uncertainty due to the COVID-19 pandemic, economic activity began
to normalize, reflecting the effects of various countries’ government policies, and there were signs of recovery in corporate
production activity and private capital investment, particularly in the manufacturing industry.
Under these circumstances, in April 2021, the Group launched the "IKO Medium-term Business Plan 2023～
Deepening, Expanding, Embracing Change～". We have taken various measures to solve key issues with the aim ofachieving stable profit and sustainable growth under the following policies: "Deepening: Deepening Existing Businesses","Expanding: Expanding New technologies and New markets", " Embracing Change: Behavior Chang ・Organizational Capacity Change・Digital Transformation".
From a sales perspective, we focused on discovering new projects and expanding sales of strategic products
as set out in the medium-term management plan, including using digital tools to deepen trade with existing customers.
Amid a continuous and substantial stream of orders, we worked closely with the production division to strengthen ourability to meet delivery deadlines.
In terms of product development, we have expanded our lineup of compact, high-precision linear motor-driven
mechatronics products, such as the “Linear Motor Table LT,” with its high-thrust specifications, and the “Nano Linear
NT,” with added compatible drivers, in order to enhance high-value-added products that meet diverse customer needs.
From a production standpoint, given the trend toward soaring orders, we upgraded our supply system indomestic factories and at IKO THOMPSON VIETNAM CO.,LTD which is a production subsidiary, and worked hard to
improve the efficiency of our production system across the entire Group, including the supply chain.
Turning to the Group’s operational results, in the domestic market, sales increased mainly forelectronics-related devices such as semiconductor manufacturing equipment and electronic components mounting
equipment as well as in machine tools. In North America, sales increased due to strong demand for electronics-related
devices and general industrial machinery, including medical equipment and precision machinery, as well as forcommercial applications. Sales also expanded in Europe, particularly for electronics-related devices, general industrial
machinery and commercial applications. In China, demand has generally recovered, and sales have grown significantly.
Sales also positively reflected a recovery in demand in other regions, such as ASEAN and South Korea.
As a result, consolidated net sales for the six-month period under review totaled ¥30,090 million, up 48.5%
year on year. On the earnings front, due in part to the increase in sales and a rise in production, operating profit came to¥2,257 million, compared with operating loss of ¥748 million for the corresponding period of the previous fiscal year, andordinary profit was ¥2,533 million, compared with ordinary loss of ¥757 million for the corresponding period of theprevious fiscal year. Profit attributable to owners of the parent amounted to ¥2,171 million, compared with loss attributableto owners of the parent of ¥588 million for the corresponding period of the previous fiscal year.
In addition, the value of needle roller bearings and linear motion rolling guides produced during the six-month
4

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

period under review, totaled ¥26,379 million, up 44.4% year on year (based on average sales prices). The value of orders
placed for these products and other machine components amounted to ¥38,539 million, up 107.1% year on year.
Because the Group manufactures and sells Needle Roller Bearings, Linear Motion Rolling Guides andMachine Components on an integrated basis, disclosure of segment information has been omitted. Sales of Needle Roller
Bearings and Linear Motion Rolling Guides totaled ¥26,872 million, a 48.4% increase compared with the corresponding
period of the previous fiscal year. Sales of Machine Components incline 49.6% to ¥3,217 million.
Business Segment Information
Six-month period ended
September 30, 2021
Millions of Component
Yenpercentages
Needle Roller Bearings, Linear
Motion Rolling Guides
Machine Components
Total net sales

Six-month period ended
September 30, 2020
Millions ofComponent
Yenpercentages

ChangeMillions of
Yen

Percentagechange26,872

89.3

18,107

89.4

8,765

48.4

3,217
30,090

10.7
100.0

2,150
20,258

10.6
100.0

1,067
9,832

49.6
48.5

(2) Summary of Financial Position
Total assets as of September 30, 2021, totaled ¥108,054 million, an increase of ¥7,107 million compared with the end of theprevious fiscal year. This mainly comprised increases in cash and deposits of ¥5,038 million, notes and accounts
receivable-trade of ¥2,701 million and deferred tax assets of ¥640 million as well as decreases in inventories of ¥371 million
and tangible fixed assets of ¥439 million.
Total liabilities amounted to ¥46,363 million, an increase of ¥4,842 million compared with the end of theprevious fiscal year. This mainly comprised increases in notes and accounts payable-trade of ¥3,201 million and long-termborrowings of ¥1,786 million.
Total net assets stood at ¥61,690 million, an increase of ¥2,265 million compared with the end of the previous
fiscal year. This mainly comprised increases in retained earnings of ¥1,882 million and foreign currency translation

adjustments of ¥299 million.

5

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

Cash Flows
Cash and cash equivalents as of September 30, 2021 totaled ¥20,210 million, an increase of ¥4,863 million compared withthe end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥5,829 million. This was inflow of ¥3,329 million at thecorresponding period of the previous fiscal year. The major inflows were profit before income taxes of ¥2,533 million,
depreciation and amortization of ¥1,944 million and an increase in trade payables of ¥3,093 million, while the major outflow
was increase in trade receivables of ¥2,577 million.
Cash Flows from Investing Activities
Net cash used in investing activities amounted to ¥1,242 million, a decrease of ¥113 million compared with thecorresponding period of the previous fiscal year. This result was payments for purchase of property, plant and equipment of¥961million.
Cash Flows from Financing Activities
Net cash provided by financing activities was ¥179 million, a decrease of ¥1,214 million compared with the corresponding
period of the previous fiscal year. The major inflow was proceeds from long-term borrowings of ¥4,000 million, while themajor outflows were net decrease in short-term borrowings of ¥1,200 million, repayments of long-term borrowings of¥2,213 million and cash dividends paid of ¥290 million.

(3) Outlook
Looking to the future, we expect to exceed the full-year consolidated earnings forecast announced on May 13, 2021. This isdue to the fact that, despite the rising costs of steel and logistics, private capital investment demand in electronics-related
devices has been strong.
In light of these conditions and the results of the first half of the fiscal year, the Group is forecasting consolidated
net sales of ¥61,000 million, operating profit of ¥5,100 million, ordinary profit of ¥5,500 million and profit attributable toowners of the parent of ¥4,200 million for the year ending March 31, 2022.

6

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

6. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of September 30, 2021 and March 31, 2021
Millions of yen
March 31,
September 30,
2021
2021

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
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

7

20,527
16,235
13,12911,830
6,153
1,009
(7)
68,87915,48913,533
14,517
10,576
6,391
1,413
(7)
61,914

11,144
12,942
24,086
1,555

11,60812,917
24,526
1,702

9,733
3,850
(51)
13,532
39,175

9,619
3,234
(51)
12,80339,032

108,054

100,946

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

Millions of yen
March 31,
September 30,
2021
2021

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

10,975
－
5,000
5,090
1,103
36
4,163
26,3697,773
1,200
10,000
5,047
398
55
3,930
28,405

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

10,000
8,546
19
57
1,370
19,994

5,000
6,803
19
37
1,255
13,115TOTAL LIABILITIES

46,363

41,521

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

9,533
12,88636,353(1,053)57,7199,533
12,88634,471(1,087)55,803

Accumulated Other Comprehensive Income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares

3,494
248
82
3,826
144

3,424
(50)
99
3,473
148

TOTAL NET ASSETS

61,69059,425TOTAL LIABILITIES AND NET ASSETS

108,054

100,946

NET ASSETS

8

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

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

For the six-month period ended September 30, 2021 and 2020
Millions of yen
September 30,
September 30,
2020
2021
Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses
Operating Profit (Loss)
Non-Operating Income:Interest income
Dividend income
Foreign exchange gains
Subsidies for employment adjustment
Others

Non-Operating Expenses:
Interest expenses
Sales discounts
Foreign exchange losses
Bond issuance costs
Furlough expenses
OthersOrdinary Profit (Loss)

Extraordinary Income:Gain on sales of investment securities

Profit (Loss) Before Income Taxes
Income Taxes
Profit (Loss)
Profit (Loss) attributable to non-controlling interests
Profit (Loss) attributable to owners of parent

930,09021,337
8,753
6,495

20,25814,786
5,471
6,219

2,257

(748)

8
99
141
―
166
415

5
92
－
97
152
348

63
―
―
32
―
43
138

59
22
108
－
124
42
357

2,533

(757)

―
―

4
4

2,533

(752)

362
2,171
―
2,171

(164)
(588)
―
(588)

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

Consolidated Statements of Comprehensive Income

For the six-month period ended September 30, 2021 and 2020
Millions of yen
September 30,
September 30,
2020
2021
Profit (Loss)
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
Breakdown:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

10

2,171

(588)

70
―
299
(16)
352
2,524

868
(0)
(224)
44
687
99

2,524
―

99
―

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

(3) Consolidated Statements of Cash Flows

For the six-month period ended September 30, 2021 and 2020
Millions of yen
September 30,
2021

September 30,
2020

Profit (Loss) before Income Taxes

2,533

(752)

Depreciation and amortization

1,944

1,945

Increase (Decrease) in account reserve

(19)

(25)

Increase (Decrease) in net defined benefit liabilities

(31)

(23)

Interest and dividend income

(108)

(98)

Interest expenses

63

59

Foreign exchange losses (gains)

(114)

92

Loss on retirement of fixed assets

8

19(2,577)

1,026

Decrease (Increase) in inventories

507

176

Increase (Decrease) in trade payables

3,093(1,270)

Increase (Decrease) in accrued expenses

261

46

Others-net

447

638

Subtotal

6,009

1,833

Interest and dividend income received

108

98

Interest expenses paid

(57)

(55)

Income taxes refund (paid)

(230)

624

Net cash provided by (used in) operating activities

5,829

2,500

(961)

(1,310)

(97)

(81)

Others-net

(182)

35

Net cash provided by (used in) investing activities(1,242)(1,355)

Cash Flows from Operating Activities:

Decrease (Increase) in trade receivables

Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment
Payments for purchase of intangible assets

11

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

Millions of yen
September 30,
2021

September 30,
2020

Net increase (decrease) in short-term borrowings(1,200)(1,200)

Proceeds from long-term borrowings

4,000

5,501

Repayments of long-term borrowings(2,213)(2,021)

Proceeds from issuance of bonds

5,000

―

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

(290)

(361)

(0)

(649)

Others-net

(117)

124

Net cash provided by (used in) financing activities

179

1,393

Effect of exchange rate change on cash and cash equivalents

96

(61)

Net increase (decrease) in cash and cash equivalents

4,863

2,476

Cash and cash equivalents at beginning of year

15,346

12,847

Cash and cash equivalents at end of period

20,21015,324

Cash Flows from Financing Activities:

Payments for purchase of treasury stock

12

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2021

(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.

(6) 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 profit before income taxes in the current consolidated fiscal year, including the second quarter, and multiplying profit
before income taxes by said estimated effective tax rate.

(7) Changes in accounting policies
Adoption of Accounting Standard for Revenue Recognition
The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020)
from the beginning of the first quarter of the fiscal year under review, and recognizes revenue for goods or services based on
the amount estimated to be received in exchange for such goods or services at the point when control of the promised goods
or services is transferred to the customer.
As a result of this adoption, expenses (other than payments for individual goods or services) included in sales promotion
expenses, which previously had been recorded as selling, general and administrative expenses, and sales discounts, which
previously had been recorded as operating expenses, are processed under net sales as decreases in transaction prices.
The adoption of the Accounting Standard for Revenue Recognition is subject to the transitional treatment provided for in
the proviso to Paragraph 84 of the Accounting Standard for Revenue Recognition. This has had no impact on the balance ofretained earnings as of April 1, 2021.
The effects of these revisions on the quarterly consolidated statements of income for the current second quarter are
immaterial.

Adoption of Accounting Standard for Fair Value Measurement
The Company has adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019)from the beginning of the first quarter of the fiscal year under review. The Company has prospectively adopted new
accounting policies based on the Accounting Standard for Fair Value Measurement in accordance with the transition
provisions in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). These changes have no impact on quarterly
financial statements.

13