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

May 29, 2020

Consolidated Financial Reportfor the Fiscal Year ended March 31, 2020
<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 24, 2020
June 24, 2020
June 25, 2020
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, 2020
(From April 1, 2019 to March 31, 2020)(1) Results of Consolidated Operations
Years ended March 31, 2020 and 2019
Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechange(Millions of yen)
Profitattributable Percentage
to ownerschangeof parent
－
(185)
3,718
121.5

2020
47,457(17.6)
1,341(72.5)
1,268(76.2)
2019
57,570
4.2
4,883
84.4
5,325
122.2
Notes: Comprehensive income
Fiscal year ended March 31, 2020: (1,836) million yen－%(26.8)%
Fiscal year ended March 31, 2019: 1,695 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.

2020
2019

Earnings
per share(Yen)(2.59)
51.95

Diluted earnings per
share
(Yen)
－
51.81

Reference: Equity in earnings of affiliates
Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:

Return on equity
(%)
(0.3)
6.2

－ million yen－ million yen
1

Ordinary profit tototal assets
(%)
1.3
5.3

Operating profit to
net sales
(%)
2.8
8.5

The fiscal year 2020

(2) Consolidated Financial Position
Years ended March 31, 2020 and 2019

2020
2019

Total assets

Net assets

Equity ratio(%)

98,118
101,468

57,43960,195

58.4
59.1(Millions of yen)
Net assets
per share(Yen)
796.63837.24

Reference: shareholders’ equity
Fiscal year ended March 31, 2020: 57,291 million yen
Fiscal year ended March 31, 2019: 59,987 million yen(3) Consolidated Cash Flows
Years ended March 31, 2020 and 2019
Operating
Investingactivities
activities
2020(2,497)(6,188)2019
5,158(5,061)

Financing
activities
4,618(1,047)(Millions of yen)
Cash and cash
equivalents
12,847
17,023

2. Dividends

Base date
2021(Forecast)
2020
2019

June 30
(Yen)
－
－
－

Base date

Total dividends(Full fiscal year)(Millions of yen)2021(Forecast)
2020
2019

900
1,080

Dividends per share
December 31
(Yen)
－
－
－

September 30
(Yen)
－
7.50
7.50
Dividends payout
ratio(Consolidated)
(%)
－
－
28.9

March 31
(Yen)
－
5.00
7.50

Dividends on
net assets(Consolidated)
(%)
1.5
1.8

Notes: The dividend forecast for the fiscal year ended 31 March 2021 has not been determined.

2

Full fiscal year
(Yen)
－
12.50
15.00

The fiscal year 2020

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2021
Forecast of consolidated operating performance for the fiscal year ending March 31, 2021 is undetermined because it isdifficult to reasonably calculate the impact of the novel coronavirus pandemic at this time. We will announce it as soon as
it becomes possible to disclose the operating performance forecast.
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
None
None
None

Note: For further details, please refer to “Changes in accounting principles” on page 17.
(3) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
Fiscal year ended March 31, 2020:
73,501,425 sharesFiscal year ended March 31, 2019:73,501,425 shares
Number of treasury stock
Fiscal year ended March 31, 2020:
1,584,793 sharesFiscal year ended March 31, 2019:
1,851,802 shares
Average number of shares outstanding at period-end
Fiscal year ended March 31, 2020:
71,803,155 sharesFiscal year ended March 31, 2019:
71,582,315 shares
Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury
stock of 121,700 shares as of March 31, 2020 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 at period-end, as
is other treasury stock. The number of shares excluded from said calculation totaled 233,066 shares for the fiscal year
ended March 31, 2020 and 420,450 shares for the fiscal year ended March 31, 2019.

3

The fiscal year 2020

Reference: Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2020
(From April 1, 2019 to March 31, 2020)(1) Results of Non-consolidated Operations
Years ended March 31, 2020 and 2019

2020
2019

(Millions of yen)

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechangeProfitPercentagechange39,49651,075(22.7)
11.3

216
4,487

(95.2)
365.2

375
4,978

(92.5)
305.4

41
3,373

(98.8)
316.3

Note: Percentage change for net sales, operating profit, ordinary profit, and profit indicate percentage increase/decrease
compared to the same period in the previous year.

2020
2019

Earnings
per share
(Yen)
0.57
47.13

Diluted earnings
per share
(Yen)
0.57
47.01

(2) Non-consolidated Financial Position
Years ended March 31, 2020 and 2019

2020
2019

Total assets

Net assets

Equity ratio(%)

90,247
92,936

51,68553,693

57.1
57.7(Millions of yen)
Net assets
per share(Yen)
716.62747.80

Reference: shareholders’ equity
Fiscal year ended March 31, 2020: 51,536 million yen
Fiscal year ended March 31, 2019: 53,579 million yen

These consolidated financial statements are not subject to audit.
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 29, 2020. 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 “5. Operating Resultsand Financial Position (4) Outlook” on page 7.

4

The fiscal year 2020

5. Operating Results and Financial Position(1) Analysis of Operating Results
In the consolidated fiscal year ended March 31, 2020, the Japanese economy continued to gradually recover against a backdropof improving employment figures. Toward the end of the fiscal year, however, the emergence of the novel coronavirus
pandemic caused the Japanese and other economies worldwide to stall and concerns about economic deceleration heightened,adding to the existing economic turmoil overseas attributable to U.S.-China trade tensions and Brexit issues.
Under these circumstances, in line with “IKO Mid-term business plan 2020 (three-year-plan) CHANGE &CHALLENGE ~Next Stage –ACCOMPLISH–,” the Group has been focused on realizing sustainable growth and establishinga highly profitable organization. To this end, we are pushing ahead with measures to solve priority issues throughinter-departmental efforts and to improve efficiency in all operations.
From a sales perspective, the Group focused on further cultivating business ties with existing customers anddeveloping new markets and customers by holding private shows and exhibitions in Japan and overseas. The Group also
worked to reinforce customer management using a new system and expanded sales of strategic products for which demand is
expected to grow going forward.
In terms of product development, the Group took a proactive stance toward R&D aimed at reducing environmental
burdens. For example, the Group engaged in developing and beginning sales of 『LCL Linear way with liquid crystal
lubricant』, which uses the world's first liquid crystal lubricant that does not evaporate and enhances the durability of machineryand bearings, as well as 『PM-Coat』, which is a new surface treatment for the needle cases used with connecting rods that
reduces energy loss from friction.
From a production standpoint, the Group worked to expand its production capacity in part by expanding facilities tomeet growing demand over the medium to long term and beginning production of IKO brand products at our production
subsidiary UBC (Suzhou) Bearing Co., Ltd. At the same time, the Group strove to create an even more efficient production
system and, to this end, promoted on-site improvement activities aimed at realizing ideal production processes.
Turning to the Group’s operational results, in the domestic market, net sales decreased due mainly to demand forsemiconductor manufacturing equipment and other electronics-related devices and precision machinery. In North America, net
sales fell in the face of continued weak demand for general industrial machinery and precision equipment. In Europe, althoughdemand for machine tools was steady, demand for general industrial machinery stagnated, and net sales decreased. In China,
net sales declined due to the difficulty in pursuing proactive sales efforts amid the spread of the novel coronavirus in the fourth
quarter as well as U.S.-China trade tensions. In other regions, net sales decreased amid signs of investment restrictions in
Taiwan, Singapore, and other countries.
As a result, consolidated net sales for the fiscal year under review totaled ¥47,457 million, down 17.6% year on year.
On the earnings front, due mainly to decreased revenue and production, operating profit came to ¥1,341 million, down 72.5%
year on year, and ordinary profit came to ¥1,268 million, down 76.2% year on year. Reflecting an increase in the Company’s
tax burden as a result of the reversal of deferred tax assets, loss attributable to owners of the parent amounted to ¥185 million,
compared with profit attributable to owners of the parent of ¥3,718 million for the previous fiscal year.
5The fiscal year 2020

In the consolidated fiscal year under review, net production of Needle Roller Bearings and Linear Motion Rolling
Guides was ¥44,707 million based on average sales price, down 20.1% year on year. However, net orders of Needle Roller
Bearings, Liner Motion Rolling Guides and Machine Components were down 29.1% to ¥40,779 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 andLinear Motion Rolling Guides totaled ¥42,230 million, a 16.9% decrease compared with the corresponding period in theprevious fiscal year. Sales of Machine Components fell 22.6% to ¥5,226 million.
Business Segment Information
March 31,
2020
Millions ofComponent
Yenpercentages
Needle Roller Bearings, Linear
Motion Rolling Guides
Machine Components
Total net sales

March 31,2019
Millions ofComponent
Yenpercentages

ChangeMillions ofyen

Percentagechange42,23089.050,82088.3(8,589)(16.9)

5,226

11.0

6,750

11.7

(1,523)(22.6)

47,457100.0

57,570100.0(10,133)(17.6)(2) Summary of Financial Position
Total assets as of March 31, 2020, totaled ¥98,118 million, a decrease of ¥3,349 million compared with the end of the previous
fiscal year. This mainly comprised increases in inventories of ¥3,963 million and tangible fixed assets of ¥2,312 million as well
as decreases in cash and deposits of ¥4,099 million, notes and accounts receivable-trade of ¥3,784 million and investment
securities of ¥1,676 million.
Total liabilities amounted to ¥40,679 million, a decrease of ¥593 million compared with the end of the previous
fiscal year. This mainly comprised increases in short-term loans payable of ¥1,200 million, corporate bonds of ¥5,000 million as
well as decreases in notes and accounts payable-trade of ¥3,605 million, accrued expenses of ¥568 million, accounts
payable-other of ¥781 million and income taxes payable of ¥1,521 million.
Total net assets amounted to ¥57,439 million, a decrease of ¥2,755 million compared with the end of the previous
fiscal year. This mainly comprised decreases in retained earnings of ¥1,265 million, valuation difference on available-for-salesecurities of ¥1,202 million and foreign currency translation adjustment of ¥331 million.

(3) Summary of Cash Flows
Cash and cash equivalents at the end of the fiscal year under review totaled ¥12,847 million, a decrease of ¥4,175 million
compared with the end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash used in operating activities was ¥2,497 million. The major inflows were depreciation and amortization of ¥3,800
million and decrease in notes and accounts receivable-trade of ¥3,642 million while the major outflows was an increase ininventories of ¥4,266 million, a decrease in notes and accounts payable-trade of ¥3,446 million and income taxes paid of ¥2,540
million.
6

The fiscal year 2020

Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥6,188 million. This was mainly due to payments for purchase of property, plant andequipment of ¥6,048 million and payments for purchase of intangible assets of ¥181 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥4,618 million. The major inflows was proceeds from long-term loans payableof ¥3,000 million and proceeds from issuance of bonds of ¥5,000 million, while the major outflows were repayments oflong-term loans payable of ¥3,489 million.

The trend of cash flow indices is as follows:
For the periods ended

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

March 31,2017

March 31,2018

March 31,2019

March 31,
2020

58.4
43.6
5.4
43.4

60.1
60.9
3.5
43.3

59.1
35.9
4.2
60.0

58.4
27.0
－
－

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 flows 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.

(4) Outlook

Regarding the forecast for the current fiscal year, the economies in Japan and overseas are expected to rapidly deteriorate
due to the novel coronavirus pandemic, and the Group anticipates that this will have a major impact on its businessenvironment.
The Group has refrained from issuing a consolidated results forecast for the full fiscal year ending March 2021
due to the difficulty of reasonably calculating the impact of the novel coronavirus pandemic on the its business activities.
When the forecast calculations become possible, the forecast will be swiftly disclosed.
Even during these circumstances, we will continue to implement “IKO Medium-term business plan 2020
CHANGE & CHALLENGE ~Next Stage –ACCOMPLISH–” as we strive to achieve sustainable growth andstrengthen our earnings base.

7

The fiscal year 2020

(5) 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 ¥5.0 per share. Including the interim dividend of¥7.5 per share, the planned full-year dividend payment ¥12.5 per share.
The Group has yet to determine its dividend forecast for the fiscal year ending March 31, 2021, but the forecast will
be swiftly disclosed once it becomes possible.

6. 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.

8

The fiscal year 2020

7. Consolidated Financial Statements
Consolidated Balance Sheets
As of March 31, 2020 and 2019
Millions of yen
ASSETS

March 31,2020

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:
Buildings and structures
Machinery and vehicles
Tools and fixtures
Land
Lease assets
Construction in progress
OthersTotal tangible fixed assets
Intangible fixed assets:
Goodwill
OthersTotal 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

9March 31,2019

12,924
11,671
16,196
11,122
6,414
2,624
(14)
60,94017,023
15,455
14,461
9,667
5,642
1,389
(19)
63,6197,855
11,500
1,119
2,951
549
355
410
24,742

5,235
9,767
888
2,951
596
2,991
－
22,430

243
1,863
2,107

287
2,279
2,566

6,708
1,381
2,294
(56)
10,32837,178

8,385
1,863
2,652
(49)
12,85137,84898,118

101,468

The fiscal year 2020

Millions of yen
LIABILITIESMarch 31,2020

March 31,2019

Current Liabilities:
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Allowance for directors’ and corporate auditors’ bonuses
Provision for loss on guarantees
OthersTotal current liabilities

7,832
1,200
4,130
162
2,123
225
63
170
1,847
17,754

11,438
－
3,179
69
2,691
1,747
60
－
2,952
22,138Long-Term Liabilities:
Corporate bonds
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liabilities
OthersTotal long-term liabilities

15,000
6,876
678
246
33
89
22,92410,000
8,317
435
279
13
87
19,134TOTAL LIABILITIES

40,67941,273

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

9,533
12,88634,988(828)
56,5799,533
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

1,365
0
(494)
(160)
711
148
－

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

TOTAL NET ASSETS

57,43960,195TOTAL LIABILITIES AND NET ASSETS

98,118

101,468

NET ASSETS

10The fiscal year 2020

Consolidated Statements of Income
Years ended March 31, 2020 and 2019
Millions of yen
March 31,
2020
Net Sales
Cost of Sales

March 31,2019

Gross Profit
Selling, General and Administrative Expenses

47,45732,69014,766
13,42557,57039,333
18,237
13,353Operating Profit

1,341

4,883

16
231
122
324
694

19
256
53
364
694

97
53
32
480
102
767

87
77
25
－
61
252

1,268

5,325

－
52
52

1
－
1

－
132
170
302

141
69
－
211

1,019

5,115

225
963
1,188
(169)
16
(185)

1,816
(442)
1,373
3,742
23
3,718

Non-Operating Income:Interest income
Dividend income
Insurance income
Others
Non-Operating Expenses:
Interest expenses
Sales discounts
Loss on retirement of fixed assets
Foreign exchange losses
OthersOrdinary Profit
Extraordinary income:Gain on sales of fixed assets
Gain on sales of investment securities
Extraordinary Losses:
Impairment loss
Loss on valuation of investment securities
Provision for loss on guarantees

Profit Before Income Taxes
Income Taxes:
Current
DeferredProfit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent
11

The fiscal year 2020

Consolidated Statements of Comprehensive Income
Years ended March 31, 2020 and 2019
Millions of yen
March 31,2020

March 31,2019

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

(169)

3,742

(1,202)
0
(336)
(127)
(1,666)(1,836)(1,882)
(0)
(5)
(158)
(2,046)
1,695

Breakdown:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests(1,847)
11

1,669
25

12

The fiscal year 2020

Statement of Changes in Consolidated Shareholders’ Equity
For the fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2019
Changes during the period
Cash dividends

Treasury stock

Total
shareholders’equity9,533

12,87536,253(1,048)57,614－－(1,080)－(1,080)

－

－

(185)

－

(185)

－

－

－

(0)

(0)

－

－

0

220

221

－

10

－

－

10

－

－

－

－

－

－
9,533

10
12,886(1,265)34,988220(828)(1,034)56,579Profit attributable to ownersof parent
Acquisition of treasury
stock
Disposal of treasury stock
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ capital
Total changes during the period
As of March 31, 2020

Retainedearnings

Accumulated other comprehensive income
Net unrealized
holding gains
onavailable-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Total
Accumulated
othercomprehensive
incomeSubscription
rights toshares

Noncontrollinginterests

2,568

(0)

(162)

(32)

2,373

114

93

60,195

Cash dividends

－

－

－

－

－

－

－

(1,080)

Profit attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasury
stock
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ capital
Total changes during theperiod

－

－

－

－

－

－

－

(185)

－

－

－

－

－

－

－

(0)

－

－

－

－

－

－

－

221

－

－

－

－

－

－

－

10

(1,202)

0

(331)

(127)

(1,661)34(93)(1,720)(1,202)

0

(331)

(127)

(1,661)34(93)(2,755)

1,365

0

(494)

(160)

711

148

－

57,439As of April 1, 2019Total
net assets

Changes during theperiodAs of March 31, 202013

The fiscal year 2020

For the fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2018
Changes during the period
Cash dividends

Treasury stock

Total
shareholders’equity9,533

12,88733,544(1,169)54,795－－(1,007)－(1,007)

－

－

3,718

－

3,718

－

－

－

(0)

(0)

－

－

(1)

121

120

－

(11)

－

－

(11)

－

－

－

－

－

－
9,533

(11)
12,8752,709
36,253121(1,048)2,819
57,614

Profit attributable to ownersof parent
Acquisition of treasury
stock
Disposal of treasury stock
Change in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items otherthan shareholders’ capital
Total changes during the period
As of March 31, 2019

Retainedearnings

Accumulated other comprehensive income
Net unrealized
holding gains
onavailable-forsale securities

Deferred
gains or losses
on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans

Total
Accumulated
othercomprehensive
incomeSubscription
rights toshares

Noncontrollinginterests

4,450

0

(154)

125

4,422

76

372

59,666

Cash dividends

－

－

－

－

－

－

－

(1,007)

Profit attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasury
stock
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other thanshareholders’ capital
Total changes during theperiod

－

－

－

－

－

－

－

3,718

－

－

－

－

－

－

－

(0)

－

－

－

－

－

－

－

120

－

－

－

－

－

－

－

(11)

(1,882)

(0)

(7)

(158)

(2,048)38(279)(2,289)(1,882)

(0)

(7)

(158)

(2,048)

38

(279)

529

2,568

(0)

(162)

(32)

2,373

114

93

60,195

As of April 1, 2018

Total
net assets

Changes during theperiodAs of March 31, 201914

The fiscal year 2020

Consolidated Statements of Cash Flows
Years ended March 31, 2020 and 2019
Millions of yen
March 31,2019

March 31,
2020
Cash Flows from Operating Activities:
Profit before income taxes

1,019

5,115

Depreciation and amortization

3,800

3,297

Increase (Decrease) in allowance for doubtful accounts

4(5)

Impairment loss－

141

Decrease in net defined benefit liabilities

(46)

(45)

Interest and dividend income

(247)

(276)

Interest expenses

97

87

Loss on retirement of fixed assets

32

25

Loss (gain) on valuation of investment securities

132

69

Decrease (Increase) in notes and accounts
receivable-trade

3,642

861

Decrease (Increase) in inventories(4,266)(4,266)

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

(360)

(175)

(3,446)

587

(561)

111

Others-net

88

264

Subtotal

(112)

5,794

Interest and dividend income received

247

276

Interest expenses paid

(93)

(85)

Dismantlement expenses paid

－

(197)

Income taxes paid

(2,540)(628)

Net cash provided by (used in) operating activities(2,497)

5,158

15

The fiscal year 2020

Millions of yen
March 31,2020

March 31,2019

Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment(6,048)(4,588)

Payments for purchase of intangible assets

(181)

(239)

Payments for purchase of investment securities

(203)

(31)

Payments for purchase of insurance funds

(279)

(279)

Proceeds from cancellation of insurance funds

400

66

Others-net

124

9(6,188)(5,061)

Net increase (decrease) in short-term borrowings

1,200

－

Proceeds from long-term loans payable

3,000

3,000

Repayments of long-term loans payable(3,489)(2,798)Proceeds from issuance of bonds

5,000

－

Cash dividends paid

(1,079)(1,007)

Payments for purchase of treasury stock

(0)

(0)

Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation

(93)

(316)

Others-net

82

76

4,618

(1,047)

Effect of exchange rate change on
cash and cash equivalents

(108)

(44)

Net decrease in cash and cash equivalents(4,175)(995)

Cash and cash equivalents at beginning of year

17,02318,019Cash and cash equivalents at end of year

12,847

17,023

Net cash used in investing activities
Cash Flows from Financing Activities:

Net cash provided by (used in) financing activities

16

The fiscal year 2020

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

(2) Treasury Shares Remaining in the Trust
Shares of the Company remaining in the trust are recorded as treasury shares under net assets at carrying value (net of
associated costs). The carrying value and number of such treasury shares were ¥310 million and 358,000 shares
respectively at March 31, 2019 and ¥105 million and 121,000 shares respectively at March 31, 2020.

(3) Carrying Value of Loans Recorded through Application of the Gross Price Method
As of March 31, 2019: ¥336 million; As of March 31, 2020: ¥252 million(Changes in accounting principles)
Some foreign subsidiaries have applied IFRS 16 “Leases” from April 1, 2019. Accordingly, as a lessee, in principle, theCompany booked all leased assets and liabilities as assets and liabilities in the Balance Sheet. In respect to the application of thisnew standard pursuant to the provisional treatment stipulated in this standard, the cumulative effect was recognized at the
beginning of 2019.
As a result, “Others” in tangible fixed assets at the end of the current consolidated fiscal year increased by ¥ 410
million, “Lease obligations” in current liabilities increased by ¥ 93 million and “Lease obligations” in long-term liabilities
increased by ¥ 316 million. The impact on profit and loss for the current consolidated fiscal year is immaterial.
17

The fiscal year 2020

(Statement of Changes in Consolidated Shareholders’ Equity)
For the fiscal Year ended March 31, 2020
1. Class and Number of Shares Issued
Increased shares
As of April 1, 2019
during the fiscal year
(Shares)(Shares)Common stock－
73,501,425

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2020
(Shares)

73,501,425

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2020
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
1,851,802
611
267,620
1,584,793
Notes: 1. The 121,700 shares held by the ESOP trust are included in treasury stock at March 31, 2020
Notes: 2. The increase of 611 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The decrease of 20 shares of treasury stock is due to sales claims of odd lot shares of less than one trading unit.
Notes: 4. The decrease of 30,800 shares of treasury stock is due to exercise of the share option rights.
Notes: 5. The decrease of 236,800 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2019
(Shares)

3. Subscription rights
Type ofsharesBreakdown ofsubject to
subscription rights
subscription
rightsStock Options as
The
Subscription
Company
Rights
Total－

Number of shares subject to subscription rights (Shares)

Balance as ofMarch
31,2020(Millions of
yen)

As of
April 1, 2019

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2020

－

－

－

－

148

－

－

－

－

148

Dividend per
share
(Yen)

Recorddate

Effective
Date

4. Dividend(1) Dividend Paid
Resolution

Class of
Stock

Total Dividend(Millions of yen)

Ordinary general meetingof shareholders on
June 27, 2019

Common stock

540

7.50

March 31,2019

June 28,
2019

Board of directors on
November 11, 2019

Common stock

540

7.50

September 30,
2019

December 11,
2019

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 27, 2019, include¥2 million to be paid as dividends on the 358,500 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 11, 2019, include¥1 million to be paid as dividends on the 242,800 shares of treasury stock held to date by the ESOP trust.

18

The fiscal year 2020

(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 25,of shareholders on
360
5.00
stock
earnings
2020
2020
June 24, 2020
Note: Total dividends include ¥0 million to be paid as dividends on the 121,700 shares of treasury stock held to date by
the ESOP trust.

For the fiscal Year ended March 31, 2019
1. Class and Number of Shares Issued
As of April 1, 2018
(Shares)

73,501,425

Common stock

Increased shares
during the fiscal year
(Shares)－

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2019
(Shares)

73,501,425

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2019
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
2,005,532
1,030
154,760
1,851,802
Notes: 1. The 358,500 shares held by the ESOP trust are included in treasury stock at March 31, 2019
Notes: 2. The increase of 1,030 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
Notes: 3. The decrease of 60 shares of treasury stock is due to sales claims of odd lot shares of less than one trading unit.
Notes: 4. The decrease of 33,100 shares of treasury stock is due to exercise of the share option rights.
Notes: 5. The decrease of 121,600 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2018
(Shares)

3. Subscription rights
Type ofsharesBreakdown ofsubject to
subscription rights
subscription
rightsStock Options as
The
Subscription
Company
Rights
Total－

Number of shares subject to subscription rights (Shares)

Balance as ofMarch
31,2019(Millions of
yen)

As of
April 1, 2018

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2019

－

－

－

－

114

－

－

－

－

114

19

The fiscal year 2020

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 28, 2018

Common stock

467

6.50

March 31,2018

June 29,
2018

Board of directors on
November 12, 2018

Common stock

540

7.50

September 30,
2018

December 12,
2018

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 28, 2018, include¥3 million to be paid as dividends on the 480,100 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 12, 2018, include¥3 million to be paid as dividends on the 431,900 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 28,of shareholders on
540
7.50
stock
earnings
2019
2019
June 27, 2019
Note: Total dividends include ¥2 million to be paid as dividends on the 358,500 shares of treasury stock held to date by
the ESOP trust.

(Consolidated Statements of Cash Flows)
1. Relationship between cash and cash equivalents year ended and the amount of the account stated in the consolidated balance
sheetsMillions of yen
March 31,
March 31,
2019
2020

Cash and deposits
Time deposits with maturity exceeding three months
Cash and cash equivalents at end of year

17,023－17,023

12,924(76)
12,847

2. Major non-cash transactions
Assets and liabilities related to finance leases are as follows.

Millions of yen
March 31,
2020
821
430

Assets related to finance leases
Liabilities related to finance leases

March 31,
2019
821
505

(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.
20

The fiscal year 2020

(Per Share Information)

Yen
March 31,2019
837.2451.95
51.81

March 31,2020
Net assets per share
796.63
Earnings per share(2.59)
Diluted earnings per share－
Notes: 1. Basis for calculations of earnings per share and diluted earnings per share is as follows.
Millions of yen

Earnings per share
Profit (loss) attributable to owners of parent
Value not attributed to common stock
Profit (loss) attributable to owners of parent pertaining tocommon stock
Average number of shares outstanding at period-end
Diluted earnings per share
Adjustment value of profit attributable to owners of parent
Increase in number of shares outstanding(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

March 31,2020

March 31,
2019

(185)
－

3,718
－

(185)

3,718

71,803,155shares

71,582,315shares

－
－
－

－
189,563(189,563)－－

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.

21