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

May 16, 2016

Consolidated Financial Reportfor the Fiscal Year ended 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 of Ordinary General Meeting of Shareholders:
Scheduled Date to Submit Annual Securities Report:
Scheduled Date to Begin Dividend Payments:
Preparation of Supplementary Explanation Material for Financial Results:
Holding of Presentation Meeting for Financial Results:

June 29, 2016
June 29, 2016
June 30, 2016
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 Fiscal Year Ended March 31, 2016
(From April 1, 2015 to March 31, 2016)(1) Results of Consolidated Operations
Years ended March 31, 2016 and 2015
Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
incomePercentagechange(Millions of yen)
Profitattributable Percentage
to ownerschangeof parent
1,569(47.1)
2,966
421.5

2016
43,664(2.9)
3,018(22.2)
2,756(42.5)
2015
44,972
14.5
3,877
4,792
459.1
－
Notes: Comprehensive income
Fiscal year ended March 31, 2016: (1,194) million yen(－))%
Fiscal year ended March 31, 2015: 5,685 million yen(61.0))%: Percentage change for net sales, operating income, ordinary income, and profit attributable to owners of parent indicate
percentage increase/decrease compared to the same period in the previous year.

2016
2015

Earnings
per share
(Yen)
21.64
40.71

Diluted earnings per
share
(Yen)
19.55
36.80

Reference: Equity in earnings of affiliates
Fiscal year ended March 31, 2016:
Fiscal year ended March 31, 2015:

Return on equity
(%)
2.6
5.1

－ million yen－ million yen
1

Ordinary income tototal assets
(%)
3.0
5.3

Operating income to
net sales
(%)
6.9
8.6

(2) Consolidated Financial Position
Years ended March 31, 2016 and 2015
Total assets

Net assets

Equity ratio
(%)

2016
89,19758,05665.0
201593,411
61,09965.4
Reference: shareholders’ equity
Fiscal year ended March 31, 2016: 58,003 million yen
Fiscal year ended March 31, 2015: 61,062 million yen(3) Consolidated Cash Flows
Years ended March 31, 2016 and 2015
Operating
Investingactivities
activities2016(2,521)(4,908)2015
7,690(2,443)Financing
activities(1,944)(1,856)(Millions of yen)
Net assets
per share(Yen)
801.58837.71(Millions of yen)
Cash and cash
equivalents
13,38618,038

2. Dividends
Dividends per share
Base date2017(Forecast)
2016
2015

June 30
(Yen)
－
－
－

Base date

Total dividends(Full fiscal year)(Millions of yen)2017 (Forecast)
2016
2015

945
807

September 30
(Yen)
6.50
6.50
5.00

December 31
(Yen)
－
－
－

Dividends payout
ratio(Consolidated)
(%)
72.3
60.1
27.0

Dividends on
net assets(Consolidated)
(%)
1.6
1.4

2

March 31
(Yen)
6.50
6.50
6.00

Full fiscal year
(Yen)
13.00
13.00
11.00

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2017
Six-month period ending September 30, 2016, and the fiscal year ending March 31, 2017
Percentage
Operating
Percentage
Net saleschangeincomechangeSix-month period ending
22,000(3.3)
1,000(49.5)
September 30, 2016
Year ending March
45,0003.1
2,400(20.5)
31, 2017
Profitattributable toowners ofparent(Millions of yen)
Ordinary
Percentage
incomechange1,000(50.2)

2,400(12.9)

Earnings
per share(Yen)

PercentagechangeSix-month period ending
500(59.0)
6.91
September 30, 2016
Year ending March
1,300(17.2)
17.97
31, 2017
Note: Percentage change for net sales, operating income, ordinary income, and profit attributable to owners of parent indicate
percentage increase/decrease compared to the same period in the previous year.

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) 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
Yes
Yes
None

Note: For further details, please refer to “Changes in accounting principles”, “Changes in accounting principles that are
difficult to distinguish from changes in accounting estimates” on page 22.
(3) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
Fiscal year ended March 31, 2016:
73,501,425 sharesFiscal year ended March 31, 2015:
73,499,875 shares
Number of treasury stock
Fiscal year ended March 31, 2016:
1,140,077 sharesFiscal year ended March 31, 2015:
562,594 shares
Average number of shares outstanding at period-end
Fiscal year ended March 31, 2016:
72,515,544 sharesFiscal year ended March 31, 2015:
72,871,983 shares
Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 338,000 shares as of March 31, 2016 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 at period-end, as
is other treasury stock. The number of shares excluded from said calculation totaled 414,833 shares for the fiscal year
ended March 31, 2016 and 561,000 shares for the fiscal year ended March 31, 2015.

3

Reference: Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2016
(From April 1, 2015 to March 31, 2016)(1) Results of Non-consolidated Operations
Years ended March 31, 2016 and 2015

2016
2015

(Millions of yen)

Net sales

PercentagechangeOperatingincome37,98239,709

(4.3)
14.6

2,665
3,256

PercentagechangeOrdinary
incomePercentagechangeProfitPercentagechange(18.2)
2,631(36.3)
1,658(34.4)
4,130
459.2
2,528
－
－
Note: Percentage change for net sales, operating income, ordinary income, and profit indicate percentage increase/decrease
compared to the same period in the previous year.

2016
2015

Earnings
per share
(Yen)
22.87
34.70

Diluted earnings
per share
(Yen)
20.65
31.37

(2) Non-consolidated Financial Position
Years ended March 31, 2016 and 2015

2016
2015

Total assets

Net assets

Equity ratio(%)

82,75885,37952,88153,935

63.9
63.2(Millions of yen)
Net assets
per share(Yen)
730.55739.48Reference: shareholders’ equity
Fiscal year ended March 31, 2016: 52,863 million yen
Fiscal year ended March 31, 2015: 53,935 million yen

Disclosure with Regard to Implementation of Audit Procedures
Although falling outside audit procedures based on the Financial Instruments and Exchange Law, these financial results
are subjected to such audit procedures, which are not 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, May 16, 2016. 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 “Operating Results andFinancial Position (1) Analysis of Operating Results [Outlook]” on page 6.

4

Operating Results and Financial Position(1) Analysis of Operating Results
Overview for the Fiscal Year Ended March 31, 2016
In the consolidated fiscal year ended March 31, 2016, the Japanese economy saw continued gradual improvement due to a
pickup in corporate earnings on the back of the weak yen. The outlook going forward, however, was unclear, reflecting suchconcerns as the negative impact of economic slowdown in China and other emerging Asian countries as well as tumbling crude
oil prices. Overseas, the U.S. economy remained firm, backed by increased personal consumption, and European economies
continued to gradually recover.
The environment in which the Group operates is growing more complicated and challenging. As the Group’sbusinesses in global markets expand, demand for low costs and quick delivery is growing ever higher, and expected standardsof product functionality and quality are rising and diversifying.
Under these circumstances, the Nippon Thompson Group launched its “IKO Mid-term business plan 2017
(three-year plan) CHANGE & CHALLENGE” in April 2015, aiming to bolster its competitiveness and presence in global
markets. Under this plan, the Group has implemented a wide range of initiatives to grow its businesses and reinforce
profitability.
From a sales perspective, the Group focused on promoting further market penetration of the IKO brand andcultivating new demand, to this end aggressively embracing a “customer-centered, proposal-based sales approach” as a pillar of
its sales policy. In particular, aiming to accelerate business development in overseas markets, the Group boosted management
support and worked to strengthen its sales bases in markets expected to grow, establishing new sales subsidiaries in South Korea
and Brazil and opening a new sales location in the state of Minnesota under its U.S. sales subsidiary.
From a product development standpoint, the Group worked to enhance its lineup of high-value-added products tomeet customer needs. To this end, the Group introduced a Roller-Type Linear Motion Rolling Guide that features the highest
load capacity in the series as well as additional sizes in its Anti-Creep Cage Crossed Roller Way lineup, which features
significantly increased load ratings.
From a production standpoint, to further improve cost competitiveness, the Group expanded both the production
capacity and range of products produced by overseas subsidiary IKO Thompson Vietnam Co., Ltd. while expanding the global
procurement of parts and materials. Furthermore, at its domestic manufacturing locations, the Group began fundamental
reforms of its production technologies and production management methods, working to reshape the Group production
framework to be highly responsive to both delivery deadlines and requests for special products.
Turning to the Group’s operational results, domestic demand was firm early in the fiscal year but negatively
impacted by the slowdown of the Chinese and global economies from autumn 2015 onward, and as a result was stagnant on thewhole. Overseas, sales in North America, especially those related to transportation devices and precision machinery, increased.
In Europe, demand continued to gradually recover, but sales were stagnant, due in part to the year-on-year strengthening of theyen. In Asia, sales were roughly flat year on year thanks to the aggressive cultivation of new demand through sales subsidiaries
and local sales agencies, which countered the impact of economic slowdown in China.
5As a result, consolidated net sales for the fiscal year under review totaled ¥43,664 million, down 2.9% year on year.
On the earnings front, selling, general and administrative expenses increased due to such initiatives to achieve the goals of the
mid-term management plan as additional hiring to expand the business base and system development costs. As a result,operating income came to ¥3,018 million, down 22.2% year on year, and ordinary income came to ¥2,756 million, down
42.5% year on year. Net income attributable to owner of parent fell 47.1% to ¥1,569 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 ¥38,154 million, a 3.3% decrease
compared with the corresponding period in the previous fiscal year. Sales of Machine Components decline 0.4% to ¥5,509
million.
Business Segment Information
March 31,
2016
Millions of Component
yenpercentages
Needle Roller Bearings, Linear
Motion Rolling Guides
Machine Components
Total net sales

March 31,
2015
Millions of Component
Yenpercentages

ChangeMillions ofyen

Percentagechange38,15487.4

39,44287.7(1,288)

(3.3)

5,509
43,664

12.6
100.0

5,529
44,972

12.3
100.0

(19)
(1,307)

(0.4)
(2.9)

Outlook
Regarding the forecast for the current fiscal year, although the outlook is uncertain, the Japanese economy is expected tocontinue to gradually recover. While exports will be negatively impacted by slowing overseas economies and the strengtheningof the yen since the beginning of 2016, private capital investment is forecast to increase, reflecting strong corporate earnings.
The world economy is also expected to continue to gradually improve, particularly in developed nations, despite concerns about
the risks presented by slowing economic growth in China, interest rate hikes in the United States, and falling oil prices.
In light of these economic conditions, the Group is forecasting consolidated net sales of ¥45.0 billion, ordinary
income of ¥2.4 billion and profit attributable to owners of parent of ¥1.3 billion for the year ending March 31, 2017.

(2) Analysis of Financial Position
Total assets as of March 31, 2016, totaled ¥89,197 million, a decrease of ¥4,213 million compared with the end of the previous
fiscal year. This mainly comprised increases in tangible fixed assets of ¥2,446 million, intangible fixed assets of ¥653 million
as well as decreases in cash and deposits of ¥4,937 million, investment securities of ¥2,081 million.
Total liabilities amounted to ¥31,141 million, a decrease of ¥1,170 million compared with the end of the previous
fiscal year. This mainly comprised an increase in accounts payable-other of ¥1,256 million as well as decreases in notes andaccounts payable-trade of ¥816 million, income taxes payable of ¥742 million, and deferred tax liabilities of ¥511 million.
Total net assets amounted to ¥58,056 million, a decrease of ¥3,043 million compared with the end of the previous
6fiscal year. The main components was an increase in treasury stock of ¥359 million as well as decreases in net unrealized
holding gains on available-for-sale securities of ¥1,456 million and foreign currency translation adjustments of ¥1,026 million.
Cash Flows
Cash and cash equivalents at the end of the fiscal year under review totaled ¥13,386 million, a decrease of ¥4,651 million
compared with the end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities was ¥2,521 million. The major inflows were income before income taxes of ¥2,754
million, depreciation and amortization of ¥2,272 million, a decrease in notes and accounts receivable-trade of ¥735 million,
while the major outflows were an increase in inventories of ¥864 million, a decrease in notes and accounts payable-trade of¥757 million and income taxes paid of ¥1,533 million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥4,908 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 ¥1,944 million. This was mainly due to proceeds from long-term bank loans of ¥3,200
million, repayments of long-term bank loans of ¥3,792 million, cash dividends paid of ¥913 million and payments for purchaseof treasury stock of ¥425 million..

The trend of cash flow indices is as follows:

Equity ratio (%)
Equity ratio on market value basis (%)
Debt repayment period (Years)
Interest coverage ratio (Times)

For the periods ended
March 31,
March 31,
2014
2015
64.6
65.4
42.3
46.3
2.2
2.4
50.3
74.6

March 31,
2013
63.0
39.8
－
－

March 31,
2016
65.0
32.6
7.1
21.6

Notes:
Equity ratio:

Total shareholders’ equity / total assets

Equity ratio on market value basis:

Aggregate market value of common stock / total assets

Debt repayment period:

Interest-bearing liabilities / cash flows from operating activities

Interest coverage ratio:
Cash flows from operating activities / interest payments
1. All indices based on consolidated financial figures.
2. Aggregate market value of common stock:Market price at the period-end x number of shares outstanding at the period-end (excluding treasury stock)
3. Cash flow from operating activities corresponds to the cash flow from operating activities in the consolidated statement ofcash flows. Interest-bearing liabilities include all liabilities reported on the consolidated balance sheet for which the Group ispaying interest. Interest payments correspond to the interest paid in the consolidated statement of cash flows.

7(3) Fundamental Earnings Distribution Policy and Dividends for the Current and Next Fiscal Periods
With regard to the distribution of profits, Nippon Thompson Co., Ltd. (the “Company”) positions the return of profits toshareholders as one of its major management issues, having as its basic policy continuing stable dividends while taking
performance levels into overall consideration.
In addition, while giving heed to such factors as the future business environment, the Group intends to retain
sufficient internal reserves. Specifically in this regard, the Group works to strengthen its management base and improveearnings power to maximize corporate value. Simultaneously, it reviews production systems that respond to rapid technologicalinnovation and fluctuating demand and makes such investments as new product development.
In keeping with the basic policy and as a result of a general review of, for example, the level of performance over the
fiscal year and internal reserves, the Company plans a year-end dividend of ¥6.5 per share. Including the interim dividend of¥6.5 per share, the planned full-year dividend payment ¥13 per share.
The Company is forecasting a dividend of ¥13 per share (including an interim dividend of ¥6.5 per share) for the
fiscal year ending March 31, 2017.

(4) Business Risks and Other Risks
Risk factors that may possibly have an effect on the Group’s operating results and financial position are set out below. Whileacknowledging the possibility of these risks occurring, the Group has policies in place to prevent any occurrence and, should theneed arise, to respond appropriately.
Forward-looking statements in the text are based on the judgments of the Group’s management as of May 16, 2016,
the date of this financial report.

1. Market environment
The Group’s products are used in a wide variety of fields, including domestic and overseas electronics-related industries,
machine tools, automobiles and motorbikes, robots, construction and general machinery. The proportion of sales to specificindustrial fields, especially semiconductor and electronic components mounting equipment and machine tools, is becoming
relatively high. By making strenuous efforts to expand sales to other industries, the Group is attempting to mitigate the impact
of demand fluctuations in these specific fields. At present, however, the Group’s operating results and financial position could
be affected by a sharp contraction in demand in these specific fields. In addition, the possibility exists that the decline indemand resulting from the recession in the Group’s main markets, which include Japan, North America, Europe and Asia,
will affect its operating results and financial position.

2. Currency exchange rate movements
The Group sells its products in global markets, including North America, Europe and Asia. Therefore, although the Grouphedges the risk from currency exchange rate movements by means of forward-exchange contracts, it is not possible tocompletely eliminate this risk. In addition, items denominated in foreign currencies, including the sales, costs and assets of8

overseas consolidated subsidiaries in the United States, the Netherlands, China and Thailand, etc. are translated into yen forthe purposes of the consolidated financial statements and can be affected by currency exchange rate movements.

3. Overseas business activities
As the Group conducts an increasing proportion of its business in overseas markets, the possibility exists that its business
operations will be affected by, for example, changes in foreign laws and regulations as well as by political and economic
turmoil.

4. Product development
Needle Roller Bearings, Linear Motion Rolling Guides produced and sold by the Group reflect customer needs gathered by
its “customer-centered, proposal-based sales approach” which forms the linchpin of its sales strategy. The products arelaunched into markets having been extensively developed so that they are set apart from rival companies’ products. However,should a fall in demand be caused by lower-cost products that nevertheless display comparatively superior quality andperformance, there remains the concern that this would cause difficulties in setting sales prices commensurate with theGroup’s value-added products.

5. Production system
The Group regards as indispensable the prioritizing of investment in raw materials and production facilities so that it can
respond to the constantly changing demands in domestic and overseas markets as well as to requests for shorter delivery times.
Accordingly, the Group endeavors to maintain and improve a production system that is capable of responding flexibly tocustomer needs. There remains the concern, however, that greater than expected short-term changes in demand may result in
supply delays and cost increases. In addition, the Group procures raw materials and components from outside suppliers foruse in the manufacture of its products. Procurement of these raw materials and components could be subject to a number of
detrimental factors: rising prices as well as product shortages resulting from market volatility; insufficient production capacity
at suppliers; fires or natural disasters at suppliers; and supplier bankruptcy. In such event, the Group’s operating results could
be adversely affected should product manufacturing costs rise or production be halted.

6. Maintaining product quality
The Group ensures product quality through its comprehensive quality control system. Nevertheless, operating results may beaffected by indemnity liabilities arising from customer complaints should issues with raw materials, production processes or
product quality management lead to the manufacture of non-shippable products.

7. Debt default by business partners
The Group maintains systems, primarily through its sales department, that constantly monitor and update information related
to the credit standing of its business partners. Nevertheless, risks exist regarding unforeseen loan default and credit loss causedby changes in the economic environment. In the event that domestic or overseas business partners default on debt as a result9

of economic downturn or intensified competition, the Group’s operating results and financial position may be adversely
affected.

8. Infringement of intellectual property rights
With regard to technology ownership, the Group makes efforts to safeguard its technologies by obtaining such intellectual
property rights as patents. However, there remains the possibility that the Group’s intellectual property rights will be infringed
by other companies; should this happen, it could affect the Group’s business activities.

9. Environmental problems
The Group works to reduce environmental impact by formulating its “Environmental Policy”, taking measures to deal withenvironmental problems and developing energy efficient products. In addition, the Group obtained ISO14001 certification,
the international standard for environmental management system, and adheres to Japanese and overseas legal regulations as amatter of course. The Group also complies with numerous regulations represented by European ELV Directives and the
RoHS Directive. In spite of these actions, the Group’s operating results may be negatively impacted by expenses incurred in
the event that unexpected circumstances lead to future environmental problems.

10. Information leakage
During the course of its business activities, the Group has access to a wide array of important and personal information. In
order to prevent leaks to outside parties and unintentional usage, the Group manages such information through theestablishment and dissemination of its Basic Information Security Policy and Personal Information Protection Policy. In theevent that an information leak is caused by unforeseen circumstances, the Group could incur significant costs in response to a
subsequent loss of public trust.

11.Occurrence of a large-scale disasterIn the event a large-scale natural or other disaster (including but not limited to earthquakes, floods, fires or snow damage)occurs at the Group’s factories or its business partners’ facilities, performance may be affected by a reduction or complete
cessation of production because of damage to production, products or work in process. Moreover, the Group’s production andsales activities may be negatively affected by material damage or injuries to personnel in the event that a terrorist attack orchanges in political conditions result in social turmoil.
The Group’s main factories are concentrated within Gifu Prefecture in Japan. In the unlikely event that a large-scale
earthquake, flood or other disaster occurs in this region, the Group’s operating results and financial position may be negatively
impacted.

The various kinds of risk stated above are not intended to provide an exhaustive list of all the forms of risk to which
the Group might be exposed.

10Status of the GroupThe Group is composed of the Company and its subsidiaries, and engages in the manufactures and sells Needle Roller
Bearings, Linear Motion Rolling Guides and Machine Components.
The Group’s business is outlined in the following diagram.

Customers
Products
Sales(Domestic)
Consolidated Subsidiary:
Nippon Dic Co., Ltd.
Non – Consolidated Company:
Hassei Shokai Co., Ltd.

Products(Overseas)
Consolidated Subsidiaries:
IKO International, Inc.
Nippon Thompson Europe B.V.
IKO - Thompson (Shanghai) Ltd.
IKO Thompson Asia Co., Ltd.
Non – Consolidated Companies:
IKO Thompson Korea Co., Ltd.
IKO Thompson Brazil Service Co., Ltd.
Products
Nippon Thompson Co., Ltd.
Process and Products
Production(Domestic)
Non – Consolidated Companies:
Shinmie Seiko Co., Ltd.
Nagahara Seiko Co., Ltd.

Service(Domestic)
Non – Consolidated Company:
Gokurakuji Kosan Co., Ltd.

(Overseas)
Consolidated Subsidiary:
IKO Thompson Vietnam Co., Ltd.
Note: The Group established IKO Thompson Korea Co., Ltd. in Korea and kicked off operations there July 1, 2015.
The Group established IKO Thompson Brazil Service Co., Ltd. in Brazil and kicked off operations there
September 24, 2015.
The Group established IKO Thompson Bearings Canada, Inc. in Canada and kicked off operations there April 1, 2016.
11

Management Policies(1) Fundamental Management Policies
Based on the corporate philosophy of “contributing to society as an R&D-oriented company,” the Group —a trusted
international enterprise—is committed to serving domestic and overseas markets through the manufacture and sale of Needle
Roller Bearings and Linear Motion Rolling Guides. Our emphasis is on quality rather than scale, as we see our mission as
developing high-value-added products that meet customer needs. The entire company is engaged in an effort to associate the
Nippon Thompson brand with the acronym IKO—“I” for Innovation, because the Company’s products are always innovative;“K” for Know-how, because they incorporate a high level of technological expertise; and “O” for Originality, because they arehighly creative.
The Group believes that contributing to the development of society is one of its most important management
policies. While thoroughly instilling corporate ethics, we make every effort to ensure compliance in management and contributeto the preservation of the global environment. Our corporate activities take into account this social mission.

(2) Management Targets and Performance Indicators
Raising shareholder return on equity (ROE), in an effort to maximize shareholder value, is the principal indicator for the Group.
Management also focuses on improving cash flows to enhance stability and to strengthen the Group’s financial position.

(3) Medium-Term Management Strategies
Through the manufacture and sale of bearings and other products, the Nippon Thompson Group aims to gain a reputation oftrustworthiness and dependability in the global market while further strengthening its presence and achieving continuous
growth. In its every action, the Group strives to realize this vision and help customers resolve their problems. To achieve theseaims, in April 2015 we launched “IKO Mid-term business plan 2017 (three-year plan) CHANGE & CHALLENGE” underwhich we are strengthening our corporate governance and implementing measures covering the following range of issues torealize a proactive management approach.
1. Improving return on invested capital (ROIC)
2. Pursuing technological development to meet customer expectations
3. Pursuing technological development aimed at new markets and fields
4. Implementing a “customer-centered, proposal-based sales approach”
5. Establishing and enhancing a robust system platform
6. Strengthen global management(4) Issues to Be Resolved
The main businesses of the Group are expected to experience a steady increase in demand from various sectors, centered on themachine tools and semiconductor manufacturing equipment industry. This forecasted rise in demand is attributable to the global
growth of the machinery and electronics industry. In step with worldwide trends toward the prevention of global warming, the12Company’s products, which meet the need for compact, power-saving machinery, are present in business fields that possess
growth potential. In addition, with the decline in the working age population in Japan and the rise in wages in emerging
economies, there is a growing call for factories that can operate with fewer workers. The factory automation (FA) market isexpanding, and products for industrial robot applications are expected to become a major growth field.
The Nippon Thompson Group will respond flexibly to changes in the businesses environment while conducting
focused investment of management resources based on careful analysis of the abovementioned promising markets andimplementing a range of measures to heighten its global competitiveness.
From the sales perspective, the Group will further promote the IKO brand by actively developing on a global scale a“customer-centered, proposal-based sales approach” as a pillar of its sales policy. In addition, we are revamping our sales
systems to improve efficiency and also aim to increase sales by cultivating existing markets and nurturing new ones. In
particular, the Group will work to expand its market share in such growth markets as China, Southeast Asia and India, where
demand is expected to grow. Specifically, in these areas, the Group will provide technical support to sales agencies through its
sales subsidiaries and cultivate new demand while working to precisely understand the unique needs of each market in order toadvance swift, flexible strategies for growing sales. The Group is also moving forward in other promising areas, such as Brazil
and Canada, where it established a new sales subsidiary in April 2016. Through such efforts, the Group is enhancing its sales
network and expanding its business across global markets.
Regarding product development, the Group is continually working to create high-value-added products that meetcustomer needs. By assessing demand trends and needs in various regions worldwide, sharing customer values and taking
advantage of our superior technological capabilities, we will develop products that anticipate customer needs.
Turning to production activities, the Group will strive toward the optimal global procurement of parts and materials
and work toward improving the international competitiveness of production subsidiary IKO Thompson Vietnam Co., Ltd, a
key production base in the Group’s global strategy, by expanding the range of products the company produces, increasing
production capacity, and achieving stable quality at reduced cost. In terms of domestic manufacturing bases, we will improvecustomer satisfaction by quickly responding to our customers’ diversifying and increasingly stringent needs through shorterproduction lead times while leveraging our production system for diverse product lines.

Basic Stance on Selection of Accounting Methods
The Group applies “Japanese GAAP” to facilitate the comparison of consolidated financial statements with different reporting
periods.
As for the adoption of “International Financial Reporting Standards (IFRS)”, the Group maintains a policy ofcontinuing to appropriately respond to the situation going forward.

13

Consolidated Financial Statements
Consolidated Balance Sheets
As of March 31, 2016 and 2015
Millions of yen
ASSETS

March 31,
2016

Current Assets:
Cash and deposits
Notes and accounts receivable-tradeFinished products
Material in process
Raw material
Deferred tax assets
OthersLess: Allowance for doubtful accounts
Total current assets
Fixed Assets:
Tangible fixed assets:
Buildings and structures
Machinery and vehicles
Tools and fixtures
Land
Lease assets
Construction in progress
Total tangible fixed assets
Intangible fixed assets
Investments and other assets:
Investment securities
Deferred tax assets
OthersLess: Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

14March 31,2015

13,933
10,24013,814
9,013
5,558
2,404
1,287
(15)
56,236

18,871
10,83913,111
9,327
5,413
2,752
1,751
(13)
62,052

5,553
10,566
620
2,965
719
319
20,744
1,974

5,026
8,850
501
2,965
598
354
18,297
1,320

7,914
268
2,104
(45)
10,24232,961

9,995
32
1,770
(58)
11,74031,35889,197

93,411Millions of yen
LIABILITIESMarch 31,2016

March 31,2015

Current Liabilities:
Notes and accounts payable-trade
Current portion of convertible bond with subscription rights
Current portion of long-term bank loans
Lease obligations
Accrued expenses
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
OthersTotal current liabilities

6,551
4,999
2,876
67
2,371
187
70
2,604
19,728

7,368
－
3,732
53
2,461
930
80
1,271
15,898Long-Term Liabilities:
Corporate bonds
Convertible bond with subscription rights
Long-term bank loans
Lease obligations
Deferred tax liabilities
Net defined benefit liabilities
OthersTotal long-term liabilities

5,000
－
5,114
624
11
539
122
11,412

5,000
5,000
4,915
531
523
333
109
16,412TOTAL LIABILITIES

31,14132,311

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

9,533
12,88734,034(620)
55,833

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
Subscription rights to shares
Non-controlling interests

2,177
(4)
163
(167)
2,169
18
35

3,634
0
1,189
113
4,937
－
37

58,056

61,09989,197

93,411

NET ASSETSTOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS
15

Consolidated Statements of Income
Years ended March 31, 2016 and 2015
Millions of yen
March 31,2016
Net Sales
Cost of Sales

March 31,2015

Gross Profit
Selling, General and Administrative Expenses

43,66429,28814,376
11,35744,97230,867
14,104
10,227

Operating Income

3,018

3,877

28
185
19
－
111
94
439

38
140
24
683
200
125
1,213

115
119
25
415
25
701
2,756

127
112
30
－
27
298
4,792

－
－
－

146
12
159

2
2
2,754

25
25
4,925

701
480
1,572
2
1,569

1,377
557
2,990
24
2,966

Non-Operating Income:Interest income
Dividend income
Real estate rent
Foreign currency translation gain
Subsidy income
Others
Non-Operating Expenses:
Interest expenses
Sales discounts
Loss on retirement of fixed assets
Foreign exchange losses
OthersOrdinary Income
Extraordinary Income:Gain on sales of fixed assets
Gain on sales of investment in securities
Extraordinary Losses:
Loss on sales of fixed assets
Income before Income Taxes
Income Taxes:
Current
DeferredProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

16

Consolidated Statements of Comprehensive Income
Years ended March 31, 2016 and 2015
Millions of yen
March 31,2016
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-controllinginterests

17

March 31,
2015

1,572

2,990

(1,456)(4)(1,025)(280)(2,767)(1,194)

1,468
0
1,139
85
2,694
5,685

(1,192)
(2)

5,657
27

Statement of Changes in Consolidated Shareholders’ Equity
For the fiscal year ended March 31, 2016
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2015
Changes during the period
Issuance of new shares
Cash dividends
Profit attributable to ownersof parent
Acquisition of treasury
stock
Disposal of treasury stock
Effect of change in closing
dates of consolidated
subsidiaries
Net changes in items otherthan shareholders’ capital
Total changes during the period
As of March 31, 2016

Retainedearnings

Total
shareholder’
equityTreasury stock

9,532

12,88633,966(260)

56,125

0
－

0
－

－
(913)

－
－

1
(913)

－

－

1,569

－

1,569

－
－

－
－

－
(0)

(425)
65

(425)
65

－

－

(588)

－

(588)

－
0
9,533

－
0
12,887－
67
34,034

－
(359)
(620)

－
(291)
55,833

Accumulated other comprehensive income

As of April 1, 2015
Changes during theperiodIssuance of newsharesCash dividends
Profit attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasury
stock
Effect of change In
closing dates of
consolidated
subsidiaries
Net changes in items
other thanshareholders’capital
Total changes during theperiodAs of March 31, 2016

Net unrealized
holding gains
onavailable-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Total
Accumulated
othercomprehensiv
e income

Subscription
rights toshares

Noncontrollinginterests

3,634

0

1,189

113

4,937

－

37

61,099

－
－

－
－

－
－

－
－

－
－

－
－

－
－

1
(913)

－

－

－

－

－

－

－

1,569

－

－

－

－

－

－

－

(425)

－

－

－

－

－

－

－

65

－

－

－

－

－

－

－

(588)

(1,456)(4)(1,026)(280)(2,767)18(2)(2,752)(1,456)
2,177

(4)
(4)

(1,026)
163

(280)
(167)

(2,767)
2,169

18
18

(2)
35

(3,043)58,05618

Total
net assets

For the fiscal year ended March 31, 2015
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2014
Cumulative effects of changes
in accounting principles
Restated balance
Changes during the period
Cash dividends
Profit attributable to ownersof parent
Acquisition of treasury
stock
Disposal of treasury stock
Net changes in items otherthan shareholders’ capital
Total changes during the period
As of March 31, 2014

Retainedearnings

Total
shareholder’
equityTreasury stock

9,532

12,886

31,777(322)

53,874－
9,532－
12,886(43)
31,734

－
(322)

(43)
53,831

－

－

(734)

－

(734)

－

－

2,966

－

2,966

－
－

－
－

－
－

(3)
65

(3)
65

－
－
9,532

－
－
12,886－
2,232
33,966

－
61
(260)

－
2,294
56,125

Accumulated other comprehensive income

As of April 1, 2014
Cumulative effects ofchanges in accounting
principles
Restated balance

Net unrealized
holding gains onavailable-for-salesecurities

Deferred gains
or losses onhedgesForeign currencytranslation
adjustments

Remeasurements of defined
benefit plans

Total
Accumulated
othercomprehensive
income

2,165

－

53

27

2,246

－

56,121

－
2,165

－
－

－
53

－
27

－
2,246

－
－

(43)
56,077

－

－

－

－

－

－

(734)

－

－

－

－

－

－

2,966

－

－

－

－

－

－

(3)

－

－

－

－

－

－

65

1,468

0

1,135

85

2,690

37

2,728

1,468
3,634

0
0

1,135
1,189

85
113

2,690
4,937

37
37

5,022
61,099Noncontrollinginterests

Total
net assets

Changes during the period
Cash dividends
Profit attributable toowners of parent
Acquisition of treasury
stock
Disposal of treasurystock
Net changes in items
other than shareholders’capital
Total changes during theperiodAs of March 31, 201519

Consolidated Statements of Cash Flows
Years ended March 31, 2016 and 2015
Millions of yen
March 31,2016

March 31,2015

Cash Flows from Operating Activities:
Income before income taxes

2,754

4,925

Depreciation and amortization

2,272

2,584

(10)

3

Decrease in net defined benefit liabilities

(10)
(236)

10
(207)

Interest and dividend income

(213)

(179)

Interest expenses

115

127

Loss on retirement of fixed assets

25

30

Gain on sales of investment in securities

－

(12)

Decrease (Increase) in notes and accounts
receivable-trade735(1,118)Decrease (Increase) in inventories

(864)

2,216

Increase in other accounts receivable
Increase (Decrease) in notes and accounts
payable-trade
Increase (Decrease) in accrued expenses

(270)

(175)

(757)

1,330

(19)

312

Others-net

438(1,080)Subtotal

3,958

8,767

Interest and dividend income received

213

179

Interest paid

(116)

(103)

Income taxes paid

(1,533)(1,152)

Net cash provided by operating activities

2,521

7,690

Increase (Decrease) in allowance for doubtful accounts
Increase (Decrease) in allowance for directors’
and corporate auditors’ bonuses

20Millions of yen
March 31,2016

March 31,2015

Cash Flows from Investing Activities:
Payments into time deposits

(678)

(715)

Proceeds from time deposits

919

403

Payments for purchase of property, plant andequipment(3,881)(1,232)

Payments for purchase of intangible assets

(721)

(735)

Payments for purchase of investment securities

(118)

(387)

Proceeds from sales of investment securities－

19

Payments for purchase of insurance funds

(283)

(281)

－

77

Others-net

(144)

408

Net cash used in investing activities(4,908)(2,443)

Proceeds from short-term bank loans

1,800

1,700

Repayments of short-term bank loans(1,800)(2,300)

Proceeds from long-term bank loans

3,200

3,009

Repayments of long-term bank loans(3,792)(3,552)－

9Cash dividends paid

(913)

(734)

Payments for purchase of treasury stock

(425)

(3)

Others-net

(11)

16

Net cash used in financing activities(1,944)(1,856)

Foreign currency translation adjustments on
cash and cash equivalents

(80)

356

Net increase in cash and cash equivalents(4,410)

3,747

Cash and cash equivalents at beginning of year

18,03814,290(240)－

13,38618,038Proceeds from cancellation of insurance funds

Cash Flows from Financing Activities:

Proceeds from share issuance to non-controllingshareholders

Decrease in cash and cash equivalents due to change in fiscal
period of consolidated subsidiaries
Cash and cash equivalents at end of year

21

Notes on the Premise of a Going Concern
There are no applicable articles.

Basis of presenting the consolidated financial statements(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 theinclusion of these subsidiaries’ performance results settled on that day, the Group’s consolidated financial statements had beenadjusted when significant transactions were executed during the period from January 1 to March 31. However, from the fiscal
year ended March 31, 2016, with the aim of further improving the accuracy 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 of IKO-Thompson (Shanghai) Ltd. on March 31, in concert with its consolidated accountsettlement.
In step with these changes, as of March 31, 2016, consolidated retained earnings have been adjusted to reflect
gains and losses recorded by the aforementioned overseas consolidated subsidiaries during the three-month period from January
1 to March 31, 2015. Differences arising in cash and cash equivalents are recorded under “Decrease in cash and cash
equivalents due to change in fiscal period of consolidated subsidiaries” on the consolidated statements of cash flows.

Changes in accounting principles(Adoption of the Accounting Standard for Business Combinations)
From the fiscal year ended 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 forConsolidated 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. werechanged, while “Minority interests” was relabeled as “Non-controlling interests.” To reflect these changes, certain items
presented in the consolidated financial statements regarding 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 thedepreciation of all of its property, plant and equipment from the fiscal year ended March 31, 2016.
22

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 flagship manufacturing bases inJapan and Vietnam that, supplementing one another’s operations, ensure the Group’s ability to withstanding fluctuations indemand. 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 to realize even more accurate sales estimates andfacilitate closer cooperation between the production and sales functions. This upgrading will help equalize the utilization statusof the Group’s production facilities. Taking these changes into account, the Company reviewed its methods for depreciating
property, plant and equipment held by the Group.
Based on this review, the Company forecast that the Group’s production facilities will be utilized in a more stablemanner going forward. The Company thus decided to adopt the straight-line method for all consolidated Group companies,
thereby unifying the method used from the fiscal year ended March 31, 2016, in line with its belief that this method will betterreflect the actual status of the use of its property, plant and equipment.
As a result, depreciation during the fiscal year ended March 31, 2016, decreased ¥528 million compared with thefigure calculated using previous methods. Also, operating income increased ¥273 million, while ordinary income and income
before income taxes each increased ¥274 million.

Additional Information(Accounting procedures for the ESOP trust)With the aim of ensuring employee benefits, the Company provides shares of the Company to the Nippon-Thompson
Employee Stock Ownership Association (hereafter referred to as the Company’s Stock Ownership Association) through the
ESOP Trust.

(1) Outline of Trades
The ESOP trust (hereafter referred to as the Trust Account) was established by the Company to cover employees enrolled
in the Company’s Stock Ownership Association who fulfill certain criteria for becoming beneficiaries. Within apredetermined acquisition period, the Trust Account acquires shares of treasury stock in a number equivalent to that which
the Company’s Stock Ownership Association expects to acquire over the five years, and then sells on said stock to theCompany’s Stock Ownership Association on a set day every subsequent month. At the end of the term of the trust, if theTrust Account records a profit due to higher share prices, this profit shall be distributed to the beneficiaries in proportion totheir individual contributions. If the Trust Account records a loss on transfer due to lower share prices and debt is incurredon trust assets, no additional burden will be imposed on employees as the Company will repay the bank in one lump sumin accordance with the warranty of the loan agreement.

23

(2) Treasury Shares Remaining in the Trust
Shares of the Company remaining in the trust are recorded as treasury shares under net assets through the carrying value(net of associated costs) in the trust. The carrying value and number of such treasury shares were ¥208 million and 493,000
shares respectively at March 31, 2015 and ¥143 million and 338,000 shares respectively at March 31, 2016.

(3) Carrying Value of Loans Recorded through Application of the Gross Price Method
As of March 31, 2015: ¥200 million; As of March 31, 2016: ¥133 million(Revisions to deferred tax asset and deferred tax liability amounts due to change in the statuary tax rate)
With the approval in the Diet of the Law for Partial Amendment of the Income Tax, etc. and the Act to Amend the Local
Taxation Act, etc. on March 29, 2016, the statutory tax rate used to calculate deferred tax assets and deferred tax liabilities forthe fiscal year under review (limited to those items to be eliminated on or after April 1, 2016) has been changed as follows:
30.9% for those scheduled for collection or payment during the period from April 1, 2016 to March 31, 2018, and 30.6% for
those scheduled for collection or payment on or after April 1, 2018.
As a result of these changes, deferred tax assets (net of deferred tax liabilities) decreased ¥142 million,
remeasurements of defined benefit plans decreased ¥5 million, and income taxes deferred increased ¥205 million, net
unrealized holding gains on available-for-sale securities increased ¥68 million.

24

Notes(Statement of Changes in Consolidated Shareholders’ Equity)
For the fiscal Year ended March 31, 2016
1. Class and Number of Shares Issued
Increased shares
Decreased shares
As of April 1, 2015
As of March 31, 2016
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)(Shares)Common stock－
73,499,875
1,550
73,501,425
Note: 1. The increase of 1,550 shares of treasury stock is due to the exercise of the subscription rights of convertible bonds with
subscription rights.
2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2016
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
562,594733,107
155,624
1,140,077
Notes: 1. The 338,000 shares held by the ESOP trust are included in treasury stock at March 31, 2016.
Notes: 2. The increase of 3,107 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The increase of 730,000 shares of treasury stock is due to the acquisition of treasury stock based on a resolution passed
at a meeting of Board of Directors.
Notes: 4. The decrease of 624 shares of treasury stock is due to sales claims of odd lot shares of less than one trading unit.
Notes: 5. The decrease of 155,000 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2015
(Shares)

3.Subscription rights
Type ofsharesBreakdown ofsubject to
subscription rights
subscription
rightsNumber of shares subject to subscription rights (Shares)
As ofApril 1, 2015

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2016

Balance as ofMarch
31,2016(Millions ofyen)

Second Series ofUnsecured
Convertible
Bonds with
Common－7,751,937
1,550
7,750,387
Note
Subscription
stock
RightsThe(Issued April 19,
Company
2011)
Stock Options as
Subscription
Rights－－－－－18(Issued July 13,
2015)
Total
－
7,751,937
1,550
7,750,387
18
Notes: 1. The total amount of convertible bonds with subscription rights shall be recorded as liabilities at the time of issuance
Note: pursuant to the issuance of straight bonds.
2. The decrease of 1,550 shares of treasury stock is due to the exercise of the subscription rights of convertible bonds with
subscription rights.
25

4. Dividend(1) Dividend Paid
Resolution

Class of
Stock

Ordinary general meetingof shareholders on
June 26, 2015

Common stock

Board of directors on
November 9, 2015

Common stock

Dividend per
share
(Yen)

Recorddate

Effective
Date

440

6.00

March 31,2015

June 29,
2015

472

6.50

September 30,
2015

December 9,
2015

Total Dividend(Millions of yen)

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 26, 2015, include
Notes: ¥2 million to be paid as dividends on the 493,000 shares of treasury stock held to date by the ESOP trust.
Notes: 2. Total dividends, based on a resolution at a meeting of Board of Directors held on November 9, 2015, include
Notes: ¥2 million to be paid as dividends on the 424,000 shares of treasury stock held to date by the ESOP trust.
(2) Dividend with a record date that falls within the current fiscal period under review and an effective date in the following
fiscal period
Dividend perClass ofResource
Total DividendRecordEffective
Resolution
share
stock
of dividend (Millions of yen)
date
Date
(Yen)
Ordinary general meeting
Common Retained
March 31,
June 30,of shareholders on
472
6.50
stock
earnings
2016
2016
June 29, 2016
Note: Total dividends include ¥2 million to be paid as dividends on the 338,000 shares of treasury stock held to date by
the ESOP trust.

For the fiscal Year ended March 31, 2015
1. Class and Number of Shares Issued
As of April 1, 2014
(Shares)Common stock

73,499,875

Increased shares
during the fiscal year
(Shares)－

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2015
(Shares)

73,499,875

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2015
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
710,420
7,174
155,000
562,594
Notes: 1. The 493,000 shares held by the ESOP trust are included in treasury stock at March 31, 2015.
Notes: 2. The increase of 7,174 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The decrease of 155,000 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2014
(Shares)26

3.Subscription rights

Breakdown ofsubscription rights

Type ofsharessubject to
subscriptio
n rights

Number of shares subject to subscription rights (Shares)
As ofApril 1,
2014

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of
March 31,2015

Balance asof March
31,2015(Millionsof yen)Second Series ofUnsecured Convertible
The
CommonBonds with
7,751,937－－
7,751,937
NoteCompany
stock
Subscription Rights(Issued April 19, 2011)
Note: The total amount of convertible bonds with subscription rights shall be recorded as liabilities at the time of issuance
Note: pursuant to the issuance of straight bonds.
4. Dividend(1) Dividend Paid
Total Dividend(Millions of yen)

Dividend per
share
(Yen)

Recorddate

Effective
Date

Resolution

Class of
Stock

Ordinary general meetingof shareholders on
June 27, 2014

Common stock

367

5.00

March 31,2014

June 30,
2014

Board of directors on
November 10, 2014

Common stock

367

5.00

September 30,
2014

December 10,
2014

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 27, 2014, include
Notes: ¥3 million to be paid as dividends on the 648,000 shares of treasury stock held to date by the ESOP trust.
Notes: 2. Total dividends, based on a resolution at a meeting of Board of Directors held on November 10, 2014, include
Notes: ¥2 million to be paid as dividends on the 566,000 shares of treasury stock held to date by the ESOP trust.
(2) Dividend with a record date that falls within the current fiscal period under review and an effective date in the following
fiscal period
Dividend perClass ofResource
Total DividendRecordEffective
Resolution
share
stock
of dividend (Millions of yen)
date
Date
(Yen)
Ordinary general meeting
CommonRetained
March 31,
June 29,of shareholders on
440
6.00
stock
earnings
2015
2015
June 26, 2015
Note: Total dividends include ¥2 million to be paid as dividends on the 493,000 shares of treasury stock held to date by
the ESOP trust.

27

(Consolidated Statements of Cash Flow)Millions of yen
March 31,
March 31,2015
2016
Relationship between cash and cash equivalents year ended and the amountof the account stated in the consolidated balance sheets
Cash and deposits
Time deposits with maturity exceeding three months

18,871(833)
18,03813,933(547)
13,386

Cash and cash equivalents at end of year

(Segment Information)
Because the Group manufactures and sells Needle Roller Bearings, Linear Motion Rolling Guides and Machine
Components on an integrated basis, the disclosure of segment information has been omitted.

(Per Share Information)
Yen

Net assets per share
Earnings per share
Diluted earnings per share

March 31,2016

March 31,2015

801.5821.64
19.55

837.7140.71
36.80

Notes: 1. Basis for calculations of earnings per share and diluted earnings per share is as follows.
Millions of yen
March 31,
March 31,2015
2016
Earnings per share
Profit attributable to owners of parent
2,966
1,569
Value not attributed to common stock－－
Profit attributable to owners of parent pertaining to common stock
2,966
1,569
Average number of shares outstanding at period-end
72,871,983shares
72,515,544shares
Diluted earnings per share
Adjustment value of profit attributable to owners of parent
Increase in number of shares outstanding(of which convertible bonds with subscription rights)(of which Subscription rights to shares)
Residual shares not included in the calculation of diluted net
income per share because they have no dilutive effect－
7,773,595shares(7,750,387shares)(23,208shares)－
7,751,937shares(7,751,937shares)－－－

Notes: 2. With regard to the computation of the number of shares outstanding at period-end, which is used to determine net
assets per share, and the average number of shares outstanding at period-end, which is used to determine earnings
per share for the period , the shares held by the ESOP trust are included in treasury stock.

(Important Subsequent Events)
There are no applicable articles.
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