NIPPON THOMPSON CO., LTD.
Corporate Headquarters: Tokyo
Listed Code: 6480
Li sted Stock Exchange: Tokyo(URL: http://www.ikont.co.jp/eg/)August 10, 2016

Consolidated Financial Reportfor the First Quarter of the Fiscal Year Ending March 31, 2017
<Japanese GAAP>
Representative: Shigeki Miyachi, President and Representative Director
For further information contact: Kesaaki Ushikoshi, General Manager of Accounting Department
Telephone: +81-3-3448-5824
Scheduled Date to Submit Quarterly Annual Securities Report:
Expected Date of Payment for Dividends:
Preparation of Supplementary Explanation Material for Quarterly Financial Results:
Holding of Presentation Meeting for Quarterly Financial Results:

August 10, 2016
－None
None

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

1. Consolidated Operating Performance for the First Quarter of Fiscal Year Ending March 31, 2017
(From April 1, 2016 to June 30, 2016)(1) Results of Consolidated Operations(Millions of yen)

June 30, 2016
June 30, 2015

Net sales

PercentagechangeOperatingincomePercentagechangeOrdinary
incomePercentagechange10,677
11,635

(8.2)
5.6

636
1,004

(36.6)
7.1

61
1,248

(95.1)
44.8

Note: Comprehensive income
Three-month period ended June 30, 2016: (1,642) million yen－%
Three-month period ended June 30, 2015: (1,355) million yen
111.6 %: 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.

June 30, 2016
June 30, 2015

Profitattributable toowners ofparent(30)732PercentagechangeEarnings
per share(Yen)－
53.3(0.42)
10.05

1Dilutedearnings
per share(Yen)－
9.09

The 1st quarter of the fiscal year 2017(2) Consolidated Financial Position
Total assets

Net assets

June 30, 2016
88,319March 31, 2016
89,197
Reference: Shareholders’ equity
As of June 30, 2016:
As of March 31, 2016:

55,95558,056(Millions of yen)
Equity ratio
(%)
63.3
65.0

55,904 million yen
58,003 million yen

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

2017(Forecast)
2017
2016

－－

September 30
6.50

December 31－

March 31
6.50

Full Fiscal Year
13.00

6.50

－

6.50

13.00

Note: Change in the current three-month period ended June 30, 2016, to dividend forecast: None

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2017

Six-month period ending
September 30, 2016
Year ending March31, 2017

Six-month period ending
September 30, 2016
Year ending March31, 2017

Net sales

PercentagechangeOperatingincome

Percentagechange21,500(5.5)

1,000(49.5)

400(80.1)

44,0000.8

2,200(27.1)

1,600(42.0)

Profitattributable toowners ofparent

PercentagechangeEarnings
per share(Yen)

200(83.6)

2.76

900(42.7)

12.43

Ordinaryincome(Millions of yen)
PercentagechangeNotes: 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.
Change in the current three-month period ended June 30, 2016, to consolidated operating performance forecast: Yes

2

The 1st quarter of the fiscal year 2017

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 “5. Summary Information” on page 4.
(3) Changes in accounting principles and accounting estimates, and restatements
Changes in accounting principles arising from revision of accounting standards:
Changes other than those in above:
Changes in accounting estimates:
Restatements:

None
None
None
None

(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of June 30, 2016:
As of March 31, 2016:

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

Number of treasury stock
As of June 30, 2016:
As of March 31, 2016:

1,106,134 shares
1,140,077 shares

Average number of shares outstanding at period-end
Three-month period ended June 30, 2016:
Three-month period ended June 30, 2015:

72,383,671 shares
72,920,774 shares

Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 303,900 shares as of June 30, 2016 and 338,000 shares as of March 31, 2016. In addition, treasury stock heldby the ESOP trust is excluded from the calculation of the average number of shares outstanding at period-end, as isother treasury stock. The number of shares excluded from said calculation totaled 315,600 shares for the three-month
period ended June 30, 2016 and 481,000 shares for the three-month period ended June 30, 2015.

Disclosure with Regard to Implementation of Quarterly Review Procedures
Although falling outside quarterly review procedures based on the Financial Instruments and Exchange Law, thesefinancial results are subjected to such review procedures, which are completed at the time of disclosure.
Explanations or Other Items Pertaining to Appropriate use of Operating Performance Forecasts
Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the“Group”) as of the date of this document, August 10, 2016. Accordingly, for a wide variety of reasons, there remains thepossibility that actual performance results may differ from projections.

3The 1st quarter of the fiscal year 2017

5. Summary Information(1) 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 first quarter, andmultiplying profit before income taxes by said estimated effective tax rate.
(2) Additional information
Application of the “Implementation Guidance on Recoverability of Deferred Tax Assets”
The Group has adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance
No. 26, March 28, 2016) from the first quarter of the fiscal year under review.

4The 1st quarter of the fiscal year 2017

6. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of June 30, 2016 and March 31, 2016
Millions of yen
March 31,
June 30,2016
2016

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
Fixed Assets:
Tangible fixed assets:
Machinery and vehicles
OthersTotal tangible fixed assets
Intangible fixed assets
Investments and other assets:
Investment securitiesOthers
Less: Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

5

15,158
10,811
13,203
8,515
5,364
3,077
(13)
56,117

13,933
10,24013,814
9,013
5,558
3,691
(15)
56,236

10,38010,07820,4582,058

10,566
10,177
20,744
1,974

7,026
2,702
(45)
9,684
32,201

7,914
2,373
(45)
10,24232,961

88,31989,197

The 1st quarter of the fiscal year 2017

Millions of yen
March 31,June 30,2016
2016

LIABILITIESCurrent Liabilities:Notes and accounts payable-tradeCurrent portion of bonds
Current portion of convertible bond with subscription rights
Current portion of long-term bank loans
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
OthersTotal current liabilities

6,170
5,000
－
2,736
78
17
4,794
18,797

6,551
－
4,999
2,876
187
70
5,043
19,728Long-Term Liabilities:
Corporate bondLong-term bank loans
Net defined benefit liabilities
OthersTotal long-term liabilities

5,000
7,366
476
722
13,565

5,000
5,114
539
758
11,412TOTAL LIABILITIES

32,36331,141

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

9,533
12,88733,530(606)
55,345

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

Accumulated 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 accumulated other comprehensive income

1,532
13(831)(156)
558

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

1833

18
35

55,95558,05688,31989,197NET ASSETS

Subscription rights to shares
Non-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

6

The 1st quarter of the fiscal year 2017(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the first quarter ended June 30, 2016 and 2015

Millions of yen
June 30,
June 30,2015
2016
Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses

10,677
7,160
3,516
2,880

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

636

1,004

289－34127

58518731309

Ordinary Income

28600
727026132－3366
1,248

Profit before Income Taxes

611,248

Income Taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent90(29)1(30)

5137352732

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

Non-Operating Expenses:
Interest expenses
Foreign exchange losses
Others7

The 1st quarter of the fiscal year 2017

Consolidated Statements of Comprehensive Income
For the first quarter ended June 30, 2016 and 2015

Millions of yen
June 30,
June 30,2015
2016
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

(29)

735

(644)
18
(997)
11
(1,613)(1,642)

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

Breakdown:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests(1,641)
(1)

1,354
18

The 1st quarter of the fiscal year 2017(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.

9