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

November 14, 2022

Consolidated Financial Reportfor the Second Quarter of the Fiscal Year Ending March 31, 2023
<Japanese GAAP>
Representative: Shigeki Miyachi, President and Representative Director
For further information contact: Takanori Kojima, General Manager of Accounting Department
Telephone: +81-3-3448-5824
Scheduled Date to Submit Quarterly Annual Securities Report:
Scheduled Date to Begin Dividend Payments:
Preparation of Supplementary Explanation Material for Quarterly Financial Results:
Holding of Presentation Meeting for Quarterly Financial Results:

November 14, 2022
December 12, 2022
Yes
Yes (Targeted at institutional investors
and analysts)

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

1. Consolidated Operating Performance for the Second Quarter of Fiscal Year Ending March 31, 2023
(From April 1, 2022 to September 30, 2022)(1) Results of Consolidated Operations(Millions of yen)

September 30, 2022
September 30, 2021

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechange34,34030,090

14.1
48.5

4,340
2,257

92.3
―

6,084
2,533

140.1
―

Notes: Comprehensive income
Six-month period ended September 30, 2022:
5,846 million yen
131.6 %
Six-month period ended September 30, 2021:
2,524 million yen―%: Percentage change for net sales, operating profit, ordinary profit, and profit attributable to owners of parent indicate
percentage increase/decrease compared to the same period in the previous year.

September 30, 2022
September 30, 2021

Profitattributable toowners ofparent4,195
2,171

PercentagechangeEarnings
per share
(Yen)

93.2
―

58.98
30.62

1

Dilutedearnings
per share
(Yen)
58.78
30.50

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

(2) Consolidated Financial Position
Total assets(Millions of yen)
Equity ratio
Net assets(%)
per share (Yen)
61.4
972.4259.6
898.58

Net assets

September 30, 2022
112,819
69,358March 31, 2022
107,078
63,974
Reference: Shareholders’ equity
As of September 30, 2022: 69,237 million yen
As of March 31, 2022:
63,829 million yen

2. Dividends(Yen)
Base date2023(Forecast)
2023
2022

June 30

September 30

－
－

9.00
6.00

Dividends per share
December 31－

March 31
9.00

Full Fiscal Year
18.00

－

7.00

13.00

Note: Change in the current three-month period ended September 30, 2022, to dividend forecast: Yes

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2023

Year ending March
31, 2023

Year ending March
31, 2023

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profit(Millions of yen)
Percentagechange68,500

10.0

9,000

52.6

10,80044.2

Profitattributable toowners ofparentPercentagechangeEarnings
per share
(Yen)

7,400

79.0

103.95

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.
: Change in the current three-month period ended September 30, 2022, to consolidated operating performance
forecast: Yes

2

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

4. Others(1) Changes in the state of significant subsidiaries during the period (Changes regarding specific companies accompanying
changes in the scope of consolidation): None
(2) Application of the special accounting methods for the presentation of the quarterly consolidated financial statements: Yes
Note: For further details, please refer on page 13.
(3) Changes in accounting principles and accounting estimates, and restatements
Changes in accounting principles arising from revision of accounting standards:
Changes other than those in above:
Changes in accounting estimates:
Restatements:

None
None
None
None

(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of September 30, 2022:
As of March 31, 2022:

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

Number of treasury stock
As of September 30, 2022:
As of March 31, 2022:

2,300,120 shares
2,467,133 shares

Average number of shares outstanding at period-end
Six-month period ended September 30, 2022:
Six-month period ended September 30, 2021:

71,126,620 shares
70,921,580 shares

Note: The number of treasury stock as of the fiscal year-end includes Nippon Thompson shares held by the share-issuing trust
account for executives and by the employee stock ownership plan (ESOP) trust account (1,356,300 shares as of 2Q
FY2023 and 1,477,400 shares as of March 31, 2022). In the calculation of the average number of shares during the
fiscal year (cumulative for the quarter), Nippon Thompson shares held by the share-issuing trust account for executives
and the ESOP trust account are included in excluded treasury stock (1,415,699 shares as of 2Q FY2023 and 1,590,433
shares as of 2Q FY2022).

These consolidated financial report are not subject to quarterly review by auditors
Explanations or Other Items Pertaining to Appropriate use of Operating Performance Forecasts
Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the“Group”) as of the date of this document, November 14, 2022. Accordingly, for a wide variety of reasons, there remains
the possibility that actual performance results may differ from projections. For performance forecasts, please refer on
pages 6.

3

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

5. Operating Results and Financial Position(1) Analysis of Operating Results
In the six-month period ended September 30, 2022, the economy shifted to a moderate recovery track amid the relaxationof various restrictions aimed at preventing the spread of COVID-19 and resulting progress in the normalization of
economic activities. On the other hand, the outlook remained unclear due mainly to surges in raw material prices andoverall inflation stemming from fallout from the Ukraine situation, as well as radical fluctuations in foreign exchange rates
amid global monetary tightening.
Under these circumstances, the Group embarked on the second year of "IKO Medium-term Business Plan
2023～Deepening, Expanding, Embracing Change～". We have taken various measures to solve key issues with the aimof achieving stable profit and sustainable growth under the following policies: "Deepening: Deepening Existing
Businesses", "Expanding: Expanding New technologies and New markets", " Embracing Change: Behavior Change・Organizational Capacity Change・Digital Transformation".
From a sales perspective, the Group resumed participation in exhibitions at home and abroad in a phasedmanner, simultaneously leveraging sales and marketing support tools with the aim of both discovering new projects andexpanding sales of strategic products. At the same time, the Group focused on deepening trade with existing customers anddeveloping growth markets.
In terms of product development, in August 2022 the Group initiated the marketing of an upgraded model of“Alignment Stage SA series,” which is capable of realizing low profile and compact XYθ movement. In this way, theGroup has striven to expand its lineup of high-value-added products designed to help promote energy saving for machinesand devices and improve their productivity.
From a production standpoint, in light of the robustness of the recent trend in demand, the Group developed aglobal production system encompassing domestic factories, as well as IKO THOMPSON VIETNAM CO.,LTD andUBC (Suzhou) Bearing Co., Ltd , both of which are production subsidiaries, while working hard to improve the efficiency
of its supply system in tandem with the entire supply chain.
Turning to the Group’s operational results, net sales increased in all regions on the back of strong demandassociated with capital investment, especially in the fields of semiconductor manufacturing equipment and otherelectronics-related devices, along with favorable foreign exchange trends involving the depreciation of the yen. In thedomestic market, sales grew higher for products related to general industrial machinery, including precision machinery andvarious medical equipment, as well as for machine tools. In North America, although demand for machine tools wasstagnant, sales were robust for precision machinery, medical equipment and other general industrial machinery,
contributing to higher net sales in this region, as did sales of products for commercial applications. In Europe, net sales
grew thanks to constantly strong demand in a broad range of sectors, including machine tools and commercial application
products. In China, following temporary fallout from lockdowns, which led to partial delays in shipping in the first quarter,
net sales increased due in part to the positive effect of yen depreciation. In other regions, net sales increased mainly in
4

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

Singapore, South Korea and India.
As a result, consolidated net sales for the six-month period under review totaled ¥34,340 million, up 14.1%
year on year. On the earnings front, due mainly to growth in net sales, an increase in production volume and thedepreciation of the yen, operating profit came to ¥4,340 million, up 92.3% year on year, and ordinary profit came to¥6,084 million, up 140.1% year on year. Profit attributable to owners of the parent amounted to ¥4,195 million, up 93.2%
year on year.
In addition, the value of Needle Roller Bearings and Linear Motion Rolling Guides produced during thesix-month period under review, totaled ¥33,214 million, up 25.9% year on year (based on average sales prices). The valueof orders placed for these products and Machine Components amounted to ¥35,104 million, down 8.9% year on year.
Because the Group manufactures and sells Needle Roller Bearings, Linear Motion Rolling Guides andMachine Components on an integrated basis, disclosure of segment information has been omitted. Sales of Needle Roller
Bearings and Linear Motion Rolling Guides totaled ¥31,027 million, a 15.5% increase compared with the corresponding
period of the previous fiscal year. Sales of Machine Components incline 3.0% to ¥3,313 million.
Business Segment Information
Six-month period ended
September 30, 2022
Millions of Component
Yenpercentages
Needle Roller Bearings,
Linear Motion Rolling Guides
Machine Components
Total net sales

Six-month period ended
September 30, 2021
Millions ofComponent
Yenpercentages

ChangeMillions of
Yen

Percentagechange31,02790.4

26,872

89.3

4,154

15.5

3,313
34,340

9.6
100.0

3,217
30,090

10.7
100.0

95
4,250

3.0
14.1

(2) Summary of Financial Position
Total assets as of September 30, 2022, totaled ¥112,819 million, an increase of ¥5,741 million compared with the end of theprevious fiscal year. This mainly comprised increases in cash and deposits of ¥1,167 million, notes and accounts
receivable-trade of ¥2,118 million and inventories of ¥3,113 million as well as decrease in investment securities of ¥1,085
million.
Total liabilities amounted to ¥43,461 million, an increase of ¥357 million compared with the end of the previous
fiscal year. This mainly comprised increases in Income taxes payable of ¥368 million and long-term borrowings of ¥2,162
million as well as decrease in short-term borrowings of ¥2,200 million.
Total net assets amounted to ¥69,358 million, an increase of ¥5,383 million compared with the end of theprevious fiscal year. This mainly comprised an increases in retained earnings of ¥3,688 million and foreign currencytranslation adjustments of ¥2,457 million as well as decrease in valuation difference on available-for-sale securities of ¥761
million.

5

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

Cash Flows
Cash and cash equivalents as of September 30, 2022 totaled ¥19,009 million, an increase of ¥1,162 million compared withthe end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥2,037 million, a decrease of ¥3,792 million at the corresponding
period of the previous fiscal year. The major inflows were profit before income taxes of ¥6,084 million and depreciation andamortization of ¥1,785 million, while the major outflows were increase in trade receivables of ¥1,631 million, increase ininventories of ¥1,320 million and Income taxes paid of ¥2,205 million.
Cash Flows from Investing Activities
Net cash used in investing activities amounted to ¥1,190 million, a decrease of ¥52 million at the corresponding period of theprevious fiscal year. This result was payments for purchase of property, plant and equipment of ¥973million.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥661 million. This was inflow of ¥179 million at the corresponding period of theprevious fiscal year. The major inflow was proceeds from long-term borrowings of ¥4,000 million, while the major outflows
were net decrease in short-term borrowings of ¥2,200 million, repayments of long-term borrowings of ¥1,837 million andcash dividends paid of ¥505 million.

(3) Outlook
Looking to the future, the Group expects to exceed its full-year consolidated earnings forecasts announced on May 12, 2022,
in light of the ongoing robustness of capital investment now undertaken in customer sectors and the effect of the depreciationof the yen, despite rising costs attributable to steel prices, logistics costs and other expenses.
In light of these conditions and the results of the first half of the fiscal year, the Group is forecasting consolidated
net sales of ¥68,500 million, operating profit of ¥9,000 million, ordinary profit of ¥10,800 million and profit attributable toowners of the parent of ¥7,400 million for the year ending March 31, 2023.

6

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

6. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of September 30, 2022 and March 31, 2022
Millions of yen
March 31,
September 30,
2022
2022

ASSETS
Current Assets:
Cash and deposits
Notes and accounts receivable-tradeFinished products
Material in process
Raw material
OthersLess: Allowance for doubtful accounts
Total current assets
Non-Current Assets:
Tangible fixed assets:
Machinery and vehicles
OthersTotal tangible fixed assets
Intangible fixed assets
Investments and other assets:
Investment securities
OthersLess: Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
TOTAL ASSETS

7

19,16919,27815,99011,870
8,828
1,248
(7)
76,37718,001
17,15914,393
12,773
6,408
1,682
(7)
70,412

10,142
12,28322,425
1,063

10,338
12,22722,565
1,093

7,936
5,053
(36)
12,95336,442

9,021
4,022
(36)
13,006
36,666112,819

107,078

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

Millions of yen
March 31,
September 30,
2022
2022

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

11,758
－
3,966
2,551
35
5,459
23,771

11,845
2,200
3,455
2,182
85
5,034
24,802

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

10,000
8,579
21
92
995
19,68910,000
6,928
20
79
1,273
18,301TOTAL LIABILITIES

43,461

43,104

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

9,533
12,886
41,570(956)
63,032

9,533
12,88637,881(1,024)59,276

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

2,255
3,927
21
6,204
121

3,017
1,470
65
4,552
144

TOTAL NET ASSETS

69,35863,974TOTAL LIABILITIES AND NET ASSETS

112,819

107,078

NET ASSETS

8

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

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

For the six-month period ended September 30, 2022 and 2021
Millions of yen
September 30,
September 30,
2021
2022
Net Sales
Cost of Sales

34,34022,553
11,787
7,446

30,09021,337
8,753
6,495

4,340

2,257

13
147
1,444
207
1,813

8
99
141
166
415

52
―
17
69

63
32
43
138

Ordinary Profit

6,084

2,533

Profit Before Income Taxes

6,084

2,533

1,889
4,195
―
4,195

362
2,171
―
2,171

Gross Profit
Selling, General and Administrative Expenses
Operating Profit
Non-Operating Income:Interest income
Dividend income
Foreign exchange gains
Others

Non-Operating Expenses:
Interest expenses
Bond issuance costs
OthersIncome Taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

Consolidated Statements of Comprehensive Income

For the six-month period ended September 30, 2022 and 2021
Millions of yen
September 30,
September 30,
2021
2022
ProfitOther Comprehensive Income:Net unrealized holding gains on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total Other Comprehensive Income
Comprehensive Income
Breakdown:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

10

4,195

2,171

(761)
2,457
(44)
1,651
5,846

70
299
(16)
352
2,524

5,846
―

2,524
―

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

(3) Consolidated Statements of Cash Flows

For the six-month period ended September 30, 2022 and 2021
Millions of yen
September 30,
2022

September 30,
2021

Profit before Income Taxes

6,084

2,533

Depreciation and amortization

1,785

1,944

Increase (Decrease) in account reserve

(50)

(19)

Increase (Decrease) in net defined benefit liabilities

(36)

(31)

Interest and dividend income

(161)

(108)

52

63

Foreign exchange losses (gains)

(922)

(114)

Loss on retirement of fixed assets

1

8

Decrease (Increase) in trade receivables(1,631)(2,577)

Decrease (Increase) in inventories(1,320)507

Increase (Decrease) in trade payables

(537)

3,093

Increase (Decrease) in accrued expenses

191

261

Others-net

691

447

Subtotal

4,147

6,009

Interest and dividend income received

161

108

Interest expenses paid

(65)

(57)

Income taxes paid

(2,205)(230)

Net cash provided by (used in) operating activities

2,037

5,829

Cash Flows from Operating Activities:

Interest expenses

11

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

Millions of yen
September 30,
September 30,
2021
2022
Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment

(973)

(961)

Payments for purchase of intangible assets

(18)

(97)

Others-net

(198)

(182)

Net cash provided by (used in) investing activities(1,190)(1,242)

Net increase (decrease) in short-term borrowings(2,200)(1,200)

Proceeds from long-term borrowings

4,000

4,000

Repayments of long-term borrowings(1,837)(2,213)

Proceeds from issuance of bonds

―

5,000

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

(505)

(290)

(0)

(0)

Others-net

(118)

(117)

Net cash provided by (used in) financing activities

(661)

179

Effect of exchange rate change on cash and cash equivalents

976

96

Net increase (decrease)in cash and cash equivalents

1,162

4,863

Cash and cash equivalents at beginning of year

17,847

15,346

Cash and cash equivalents at end of period

19,00920,210Cash Flows from Financing Activities:

Payments for purchase of treasury stock

12

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2022

(4) Notes on the Premise of a Going Concern

There are no applicable articles.

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

There are no applicable articles.

(6) Application of the special accounting methods for the presentation of the quarterly consolidated financial
statements

Calculation of tax expenses
Tax expenses are calculated by reasonably estimating the effective tax rate after the application of deferred tax accounting
on profit before income taxes in the current consolidated fiscal year, including the second quarter, and multiplying profit
before income taxes by said estimated effective tax rate.

13