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

February 12, 2020

Consolidated Financial Reportfor the Nine-Month Period Ended December 31, 2019
<Japanese GAAP>
Representative: Shigeki Miyachi, President and Representative Director
For further information contact: Kesaaki Ushikoshi, General Manager of Accounting Department
Telephone: +81-3-3448-5824
Scheduled Date to Submit Quarterly Annual Securities Report:
Scheduled Date to Begin Dividend Payments:
Preparation of Supplementary Explanation Material for QuarterlyFinancial Results:
Holding of Presentation Meeting for Quarterly Financial Results:

February 12, 2020
－None
None

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

1. Consolidated Operating Performance for the Nine-month Period Ended December 31, 2019
(From April 1, 2019 to December 31, 2019)(1) Results of Consolidated Operations(Millions of yen)

December 31, 2019
December 31, 2018

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechange36,38443,545(16.4)
8.6

1,156
3,566

(67.6)
167.0

1,191
3,786

(68.5)
163.5

Note: Comprehensive income
Nine-month period ended December 31, 2019:
496 million yen(10.0) %Nine-month period ended December 31, 2018:
551 million yen(83.5) %: Percentage change for net sales, operating profit, ordinary profit, and profit attributable to owners of parent indicate
percentage increase/decrease compared to the same period in the previous year.

December 31, 2019
December 31, 2018

Profitattributable toowners ofparent474
2,648

PercentagechangeEarnings
per share(Yen)(82.1)
98.2

6.61
37.00

1Dilutedearnings
per share(Yen)
6.58
36.91

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the third Quarter Ended December 31, 2019(2) Consolidated Financial Position

December 31, 2019
March 31, 2019

Total assets

Net assets

102,918
101,468

59,83260,195

Reference: Shareholders’ equity
As of December 31, 2019:
As of March 31, 2019:(Millions of yen)
Equity ratio
Net assets(%)
per share (Yen)
57.9
828.8559.1
837.2459,575 million yen
59,987 million yen

2. Dividends(Yen)
Base date2020(Forecast)
2020
2019

June 30September 30

Dividends per share
December 31

－－

7.50
7.50

－－

March 31
7.50

Full Fiscal Year
15.00

7.50

15.00

Note: Change in the current three-month period ended December 31, 2019, to dividend forecast: None

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2020

Year ending March
31, 2020

Year ending March
31, 2020

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profit(Millions of yen)
Percentagechange48,500(15.8)

2,000(59.0)

1,800(66.2)

Profitattributable toowners ofparent

PercentagechangeEarnings
per share
(Yen)

600

(83.9)

8.36

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 December 31, 2019, to consolidated operating performance
forecast: None2

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the third Quarter Ended December 31, 2019

4. Others(1) Changes in the state of significant subsidiaries during the period (Changes regarding specific companies accompanying
changes in the scope of consolidation): None
(2) Application of the special accounting methods for the presentation of the quarterly consolidated financial statements: Yes
Note: For further details, please refer on page 8.
(3) Changes in accounting principles and accounting estimates, and restatements
Changes in accounting principles arising from revision of accounting standards:
Changes other than those in above:
Changes in accounting estimates:
Restatements:

Yes
NoneNone
None

Note: For further details, please refer on page 8.
(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of December 31, 2019:
As of March 31, 2019:73,501,425 shares
73,501,425 shares

Number of treasury stock
As of December 31, 2019:
As of March 31, 2019:

1,623,624 shares
1,851,802 shares

Average number of shares outstanding at period-end
Nine-month period ended December 31, 2019:
Nine-month period ended December 31, 2018:

71,770,122 shares
71,562,164 shares

Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 160,600 shares as of December 31, 2019 and 358,500 shares as of March 31, 2019. In addition, treasury
stock held by the ESOP trust is excluded from the calculation of the average number of shares outstanding atperiod-end, as is other treasury stock. The number of shares excluded from said calculation totaled 265,388 sharesfor the nine-month period ended December 31, 2019 and 438,788 shares for the nine-month period ended
December 31, 2018.

These consolidated financial statements are not subject to quarterly review by auditorsExplanations or Other Items Pertaining to Appropriate use of Operating Performance Forecasts
Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the“Group”) as of the date of this document, February 12, 2020. Accordingly, for a wide variety of reasons, there remains
the possibility that actual performance results may differ from projections.

3

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the third Quarter Ended December 31, 2019

5. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of December 31, 2019 and March 31, 2019
Millions of yen
March 31,
December 31,
2019
2019

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

14,872
11,788
16,793
11,293
6,343
2,026
(18)
63,09917,023
15,455
14,461
9,667
5,642
1,389
(19)
63,619Non-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

11,29013,58924,8792,174

9,767
12,66322,430
2,566

8,901
3,912
(49)
12,76539,818

8,385
4,515
(49)
12,85137,848TOTAL ASSETS

102,918

101,468

4

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the third Quarter Ended December 31, 2019

Millions of yen
LIABILITIES

December 31,
2019

March 31,2019

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

9,544
1,200
3,622
107
54
4,403
18,933

11,438－3,179
1,747
60
5,713
22,138

Non-Current Liabilities:
Corporate bondLong-term loans payable
Net defined benefit liabilities
OthersTotal non-current liabilities

15,000
7,999
13
1,138
24,152

10,0008,317
13
803
19,13443,08541,273

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

9,533
12,87535,648(862)
57,195

9,533
12,87536,253(1,048)57,614

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
Subscription rights to shares
Non-controlling interests

2,891
(2)
(459)
(49)
2,380
148
108

2,568
(0)
(162)
(32)
2,373
114
93

TOTAL NET ASSETS

59,83260,195TOTAL LIABILITIES AND NET ASSETS

102,918

101,468

TOTAL LIABILITIESNET ASSETS

5NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the third Quarter Ended December 31, 2019(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income

For the nine-month period ended December 31, 2019 and 2018
Millions of yen

Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses
Operating Profit
Non-Operating Income:Interest income
Dividend income
Insurance Income
Others

Non-Operating Expenses:
Interest expenses
Sales discounts
Foreign exchange loss
OthersOrdinary Profit
Extraordinary Income:Gain on sales of investment securities

Extraordinary Losses:
Impairment loss
Loss on valuation of investment securities

Profit Before Income Taxes
Income Taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent
6

December 31,
2019

December 31,
2018

36,384
24,812
11,572
10,41643,54529,863
13,681
10,114

1,156

3,566

12
192
122
228
556

13
208
44
203
469

71
42
338
69
521

65
126
－
56
249

1,191

3,786

52
52

－
－－－－

142
70
212

1,244

3,573

758
485
11474

914
2,659
112,648

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the third Quarter Ended December 31, 2019

Consolidated Statements of Comprehensive Income

For the nine-month period ended December 31, 2019 and 2018
Millions of yen
December 31,2019

December 31,
2018

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

485

2,659

323
(2)
(292)
(16)
11496

(2,164)1118(62)(2,107)
551

Breakdown:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

48115540
117

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the third Quarter Ended December 31, 2019(3) Notes on the Premise of a Going Concern

There are no applicable articles.

(4) Notes on the Statement of Changes in Consolidated Shareholders’ Equity

There are no applicable articles.

(5) Application of the special accounting methods for the presentation of the quarterly consolidated 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 third quarter, and multiplying profit before
income taxes by said estimated effective tax rate.

(6) Changes in accounting policies
Parts of consolidated overseas subsidiaries adopted IFRS 16 “Leases” from April 1, 2019 and recognize all leases as alessee in principle as assets and liabilities on the balance sheets. In adopting the accounting standards, in accordance with thetransitional treatment, the Group recognizes the cumulative effect of initially applying the accounting standards at the date ofinitial application.
As a result, others included in tangible fixed assets, others included in current liabilities, and others included in long-term
liabilities at the end of the current third quarter increased by ¥419 million, ¥27 million, and ¥391 million, respectively. The
effects of these revisions on the quarterly consolidated statements of income for the current third quarter are immaterial.

8