NIPPON THOMPSON CO., LTD.
C o r po r at e He ad q u art e rs : To ky o
Listed Code: 6480
L i s t e d S t o c k E x c h a n g e : To k y o(URL: https://www.ikont.co.jp/eg/)

May 13, 2021

Consolidated Financial Reportfor the Fiscal Year ended March 31, 2021
<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 25, 2021
June 25, 2021
June 28, 2021
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 Fiscal Year Ended March 31, 2021
(From April 1, 2020 to March 31, 2021)(1) Results of Consolidated Operations
Years ended March 31, 2021 and 2020
Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechange(Millions of yen)
Profitattributable Percentage
to ownerschangeof parent
215
－
(185)
－

2021
44,342
(6.6)
(559)
―
225
(82.2)
2020
47,457(17.6)
1,341(72.5)
1,268(76.2)
Notes: Comprehensive income
Fiscal year ended March 31, 2021: 2,977 million yen－%
Fiscal year ended March 31, 2020: (1,836) 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.
Earnings
Diluted earnings per
Return on equity
per share
share
(%)
(Yen)
(Yen)
2021
3.02
3.01
0.4
2020
(2.59)(0.3)－
Reference: Equity in earnings of affiliates
Fiscal year ended March 31, 2021:－ million yen
Fiscal year ended March 31, 2020:－ million yen
1

Ordinary profit tototal assets
(%)
0.2
1.3

Operating profit to
net sales
(%)
(1.3)
2.8

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(2) Consolidated Financial Position
Years ended March 31, 2021 and 2020
Total assets

Net assets

Equity ratio
(%)

2021
100,946
59,42558.7
2020
98,11857,43958.4
Reference: shareholders’ equity
Fiscal year ended March 31, 2021: 59,276 million yen
Fiscal year ended March 31, 2020: 57,291 million yen(3) Consolidated Cash Flows
Years ended March 31, 2021 and 2020
Operating
Investingactivities
activities
2021
5,658
(3,007)2020(2,497)(6,188)Financing
activities
(412)
4,618

(Millions of yen)
Net assets
per share(Yen)
836.43796.63(Millions of yen)
Cash and cash
equivalents
15,346
12,847

2. Dividends

Base date2022(Forecast)
2021
2020

June 30
(Yen)
－
－
－

Base date

Total dividends(Full fiscal year)(Millions of yen)2022(Forecast)
2021
2020

580
900

Dividends per share
December 31
(Yen)
－
－
－

September 30
(Yen)
5.50
4.00
7.50
Dividends payout
ratio(Consolidated)
(%)
25.2
264.9
－

Dividends on
net assets(Consolidated)
(%)
1.0
1.5

2

March 31
(Yen)
5.50
4.00
5.00

Full fiscal year
(Yen)
11.00
8.00
12.50

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2022
Six-month period ending September 30, 2021, and the fiscal year ending March 31, 2022
Percentage
Operating
Percentage
Net saleschangeprofitchangeSix-month period ending
27,00033.3
1,300―
September 30, 2020
Year ending March
56,00026.3
3,500―
31, 2021
Profitattributable toowners ofparentOrdinary
profit(Millions of yen)
Percentagechange

1,400

―

3,700

―

Earnings
per share(Yen)

PercentagechangeSix-month period ending
1,500
21.14
―
September 30, 2020
Year ending March
3,100
43.66
―
31, 2021
Note: 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.

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:

None
None
None
None

(3) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
Fiscal year ended March 31, 2021:
73,501,425 sharesFiscal year ended March 31, 2020:
73,501,425 shares
Number of treasury stock
Fiscal year ended March 31, 2021:
2,632,602 sharesFiscal year ended March 31, 2020:
1,584,793 shares
Average number of shares outstanding at period-end
Fiscal year ended March 31, 2021:
71,299,324 sharesFiscal year ended March 31, 2020:
71,803,155 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 (1,636,800 shares as of March 31,
2021 and 121,700 shares as of March 31, 2020). 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 (1,050,575 shares as of March 31, 2021 and 233,066 shares as of March
31, 2020).

3

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

Reference: Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2021
(From April 1, 2020 to March 31, 2021)(1) Results of Non-consolidated Operations
Years ended March 31, 2021 and 2020
Net sales

Percentagechange(Millions of yen)
OperatingprofitPercentagechangeOrdinary
profitPercentagechangeProfit2021
35,924(9.0)(2,442)―(1,535)―(1,292)
2020
39,496(22.7)
216(95.2)
375(92.5)
41
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.

2021
2020

Earnings
per share(Yen)(18.12)0.57―(98.8)

Diluted earnings
per share
(Yen)
―
0.57

(2) Non-consolidated Financial Position
Years ended March 31, 2021 and 2020
Total assets

PercentagechangeNet assets

Equity ratio
(%)

2021
89,984
51,42757.0
2020
90,247
51,685
57.1
Reference: shareholders’ equity
Fiscal year ended March 31, 2021: 51,278 million yen
Fiscal year ended March 31, 2020: 51,536 million yen(Millions of yen)
Net assets
per share(Yen)
723.57716.62

These consolidated financial report 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 13, 2021. 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 Results andFinancial Position (4) Outlook” on page 7.

4

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

5. Operating Results and Financial Position(1) Analysis of Operating Results
In the first half of the consolidated fiscal year ended March 31, 2021, the economy in Japan and abroad rapidly deteriorated due
in part to restrained private capital investment in the manufacturing sector caused by the COVID-19 pandemic. As economic
activities resumed in various countries, production and exports showed signs of recovery, but the outlook remained unclear withstill no projected end to the pandemic in sight as evidenced by the reinforcement of restrictions amid new outbreaks and theemergence of variants.
Under these circumstances, placing the utmost priority on ensuring the safety of its customers, suppliers and employees,
the Group has implemented robust measures aimed at preventing the spread of the novel coronavirus in the course of its efforts tomaintain its product supply structure. Also, 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 through interdepartmental efforts and to improve efficiency in all operations.
From a sales perspective, even as sales activities were restricted due to effects of the pandemic, we worked to deepen
trade with existing customers and cultivate new markets and customers by expanding our flexible sales activities using digitaltechnologies. For example, we held web meetings, online exhibitions, and the IKO VIRTUAL SHOW ROOM, where we
promoted our newest technologies and product information.
In terms of product development, we worked to expand our high-value-added products tailored to customer needs.
For example, we launched the smallest version of 『Super Slim Type Crossed Roller Bearings (CRBT)』, which boasts the thinnest
width and lightest weight, and 『Super Precision Positioning Table TX』, which has added an optimal absolute linear encoder for
applications that need high resolution and high-speed mobility. We also expanded our 『liquid crystal lubricant series』,
introducing the world’s first liquid crystal bearing lubricant, a technology that demonstrates superior performance even in extreme
environments, such as vacuums, clean rooms, and high heat.
From a production standpoint, to enhance our price competitiveness throughout the supply chain, we worked toenhance productivity through continuous efforts to improve frontline workplaces and strove to build an efficient global production
system, to this end promoting the production of IKO brand products at our production subsidiary UBC (Suzhou) Bearing Co.,Ltd.
Turning to the Group’s operational results, net orders at present have recovered despite a year-on-year decline in sales
due to slower private capital investment demand caused by negative economic conditions from the pandemic. In the domestic
market, although sales for electronics-related devices remained firm, overall sales decreased, especially those of machine tools. In
North America, net sales declined due to stagnant sales of transportation devices and off-the-shelf products despite strong sales ofelectronics-related devices. In Europe, overall sales declined due to weak sales of general industrial machinery and off-the-shelfproducts although demand for medical equipment increased. In China, after economic activities resumed, demand rapidly
recovered, and net sales increased significantly. In other regions, although demand in Singapore remained firm, net sales in India,
Hong Kong, and Thailand decreased due in part to effects of restrictive measures.
5

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

As a result, consolidated net sales for the fiscal year under review totaled ¥44,342 million, down 6.6% year on year.
On the earnings front, even though we implemented cost reduction measures with restrictions of sales activities, due mainly todecreased revenue and production, operating loss came to ¥559 million, compared with operating profit of ¥1,341 million for thecorresponding period of the previous fiscal year, ordinary profit came to ¥225 million, down 82.2% year on year, and profit
attributable to owners of the parent amounted to ¥215 million, compared with loss attributable to owners of the parent of ¥185
million for the previous fiscal year.
In the consolidated fiscal year under review, net production of Needle Roller Bearings and Linear Motion Rolling
Guides was ¥37,722 million based on average sales price, down 15.6% year on year. However, net orders of Needle Roller
Bearings, Liner Motion Rolling Guides and Machine Components were up 25.9% to ¥51,348 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 ¥39,565 million, a 6.3% decrease compared with the corresponding period in the previous
fiscal year. Sales of Machine Components fell 8.6% to ¥4,776 million.
Business Segment Information
March 31,
2021
Millions of Component
Yenpercentages
Needle Roller Bearings, Linear
Motion Rolling Guides
Machine Components
Total net sales

March 31,
2020
Millions ofComponent
Yenpercentages

ChangeMillions ofyen

Percentagechange39,56589.2

42,23089.0(2,665)

(6.3)

4,776
44,342

10.8
100.0

5,226
47,457

11.0
100.0

(450)
(3,115)

(8.6)
(6.6)

(2) Summary of Financial Position
Total assets as of March 31, 2021, totaled ¥100,946 million, an increase of ¥2,827 million compared with the end of the previous
fiscal year. This mainly comprised increases in cash and deposits of ¥2,564 million and investment securities of ¥2,911 million as
well as decrease in inventories of ¥2,248 million.
Total liabilities amounted to ¥41,521 million, an increase of ¥842 million compared with the end of the previous fiscal
year. This mainly comprised increases in Long-term loans payable of ¥843 million and Lease obligations of ¥331 million as
well as decrease in accounts payable-other of ¥318 million.
Total net assets amounted to ¥59,425 million, an increase of ¥1,985 million compared with the end of the previous
fiscal year. This mainly comprised an increases in net unrealized holding gains on available-for-sale securities of ¥2,058 million
and foreign currency translation adjustments of ¥443 million, as well as decrease in retained earnings of ¥517 million.

(3) Summary of Cash Flows
Cash and cash equivalents at the end of the fiscal year under review totaled ¥15,346 million, an increase of ¥2,498 million
compared with the end of the previous fiscal year.
6

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

Cash Flows from Operating Activities
Net cash provided by operating activities was ¥5,658 million. The major inflows were depreciation and amortization of¥3,833million and decrease in inventories of ¥2,637 million while the major outflows was, an increase in notes and accounts
receivable-trade of ¥1,605 million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥3,007 million. This was mainly due to payments for purchase of property, plant andequipment of ¥2,950 million.
Cash Flows from Financing Activities
Net cash used in financing activities totaled ¥412 million. The major inflows was proceeds from long-term loans payable of¥5,501million, while the major outflows were repayments of long-term loans payable of ¥4,657 million, cash dividends paid of¥650 million and payments for purchase of treasury stock of ¥649 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,
2019
2020
59.1
58.4
35.9
27.0
4.2
－
60.0
－

March 31,
2018
60.1
60.9
3.5
43.3

March 31,
2021
58.7
46.5
5.0
49.3

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 of cash
flows. Interest-bearing liabilities include all liabilities reported on the consolidated balance sheet for which the Group is paying
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, despite the outlook remaining unclear as the pandemic drags on, private
capital investment demand has currently recovered for electronics-related devices and other products, and the recovery is
expected to continue.
In light of these economic conditions, the Group is forecasting consolidated net sales of ¥56,000 million,
operating profit of ¥3,500 million, ordinary profit of ¥3,700 million and profit attributable to owners of parent of ¥3,100
million for the year ending March 31, 2022.
7

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(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 sufficientinternal reserves. Specifically in this regard, the Group works to strengthen its management base and improve earnings power tomaximize corporate value. Simultaneously, it reviews production systems that respond to rapid technological innovation andfluctuating 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 ¥4.0 per share. Including the interim dividend of ¥4.0
per share, the planned full-year dividend payment ¥8.0 per share.
The Company is forecasting a dividend of ¥11.0 per share (including an interim dividend of ¥5.5 per share) for the
fiscal year ending March 31, 2022.

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

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

7. Consolidated Financial Statements(1) Consolidated Balance Sheets
As of March 31, 2021 and 2020
Millions of yen
March 31,
March 31,
2020
2021

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:
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 non-Current Assets
TOTAL ASSETS

915,48913,533
14,517
10,576
6,391
1,413
(7)
61,914

12,924
11,671
16,196
11,122
6,414
2,624
(14)
60,9407,477
11,608
914
2,951
511
256
806
24,526

7,855
11,500
1,119
2,951
549
355
410
24,742

211
1,490
1,702

243
1,863
2,107

9,619
823
2,411
(51)
12,80339,032

6,708
1,381
2,294
(56)
10,32837,178100,946

98,118NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

Millions of yen
March 31,
March 31,
2020
2021

LIABILITIESCurrent Liabilities:
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds
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

7,773
1,200
10,000
5,047
277
2,139
398
55
－
1,514
28,405

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

Non-Current Liabilities:
Corporate bonds
Long-term loans payable
Lease obligations
Deferred tax liabilities
Net defined benefit liabilities
Provision for share-based remuneration for directors
OthersTotal non-current liabilities

5,000
6,803
894
266
19
37
93
13,11515,000
6,876
678
246
33
－
89
22,924

41,521

40,679

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

9,533
12,88634,471(1,087)55,803

9,533
12,88634,988(828)
56,579

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

3,424
－
(50)
99
3,473
148

1,365
0
(494)
(160)
711
148

TOTAL NET ASSETS

59,42557,439TOTAL LIABILITIES AND NET ASSETS

100,946

98,118TOTAL LIABILITIESNET ASSETS

10NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Years ended March 31, 2021 and 2020
Millions of yen

March 31,2021
Net Sales
Cost of Sales
Gross Profit
Selling, General and Administrative Expenses
Operating Profit(Loss)
Non-Operating Income:Interest income
Dividend income
Foreign exchange gains
Insurance income
Subsidies for employment adjustment
Others
Non-Operating Expenses:
Interest expenses
Sales discounts
Loss on retirement of fixed assets
Foreign exchange losses
Furlough expenses
OthersOrdinary Profit
Extraordinary income: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

March 31,2020

44,342
32,696
11,645
12,20447,45732,69014,766
13,425

(559)

1,341

17
158
399
97
271
252
1,196

16
231
－
122
－
324
694

117
45
22
－
194
32
411

97
53
32
480
－
102
767

225

1,268

24
24

52
52

125
－
－
125

－
132
170
302

125

1,019

284
(374)
(90)
215
－
215

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

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

Consolidated Statements of Comprehensive Income
Years ended March 31, 2021 and 2020
Millions of yen
March 31,
March 31,
2020
2021
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

215

(169)

2,058
(0)
443
259
2,761
2,977

(1,202)
0
(336)
(127)
(1,666)(1,836)

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

2,977
－

(1,847)11

12

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(3) Statement of Changes in Consolidated Shareholders’ Equity

For the fiscal year ended March 31, 2021
(Millions of yen)
Shareholders’ Equity
CapitalSurplus

Common stock
As of April 1, 2020
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, 2021

Retainedearnings

Total
shareholders’equityTreasury stock

9,533

12,88634,988(828)

56,579

－

－

(650)

－

(650)

－

－

215

－

215

－

－

－

(649)

(649)

－

－

(82)

390

307

－

－

－

－

－

－
9,533

－
12,886(517)
34,471(259)(1,087)(776)
55,803

Accumulated other comprehensive income

As of April 1, 2020

Remeasurements of defined
benefit plans

Total
Accumulated
othercomprehensive
income

(494)

(160)

711

148

57,439

－

－

－

－

－

(650)

－

－

－

－

－

－

215

－

－

－

－

－

－

(649)

－

－

－

－

－

－

307

2,058

(0)

443

259

2,761

－

2,761

2,058

(0)

443

259

2,761

－

1,985

3,424

－

(50)

99

3,473

148

59,425Net unrealized
holding gains onavailable-forsale securities

Deferred gains
or losses onhedges

1,365

0

－

Foreigncurrencytranslation
adjustments

Subscription
rights to sharesTotal
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, 2021

13

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

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

Total
shareholders’equityTreasury stock

9,533

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 noncontrolling 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
on availableforsale securities

Deferred
gains or losses
on hedges

2,568

(0)

Cash dividends－

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 theperiodAs of April 1, 2019

Remeasurements ofdefinedbenefit plans

Total
Accumulated
othercomprehensive
incomeSubscription
rights toshares

Noncontrollinginterests

Total
net assets

(162)

(32)

2,373

114

93

60,195

－

－

－

－

－

－

(1,080)

－

－

－

－

－

－

－

(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

－

57,439Foreigncurrencytranslation
adjustments

Changes during theperiodAs of March 31, 2020

14

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(4) Consolidated Statements of Cash Flows
Years ended March 31, 2021 and 2020
Millions of yen
March 31,2020

March 31,2021
Cash Flows from Operating Activities:
Profit before income taxes

125

1,019

Depreciation and amortization

3,833

3,800

Increase (Decrease) in allowance for doubtful accounts

(11)

4

Impairment loss

125－

Decrease in net defined benefit liabilities

(43)

(46)

Interest and dividend income

(175)

(247)

Interest expenses

117

97

Loss on retirement of fixed assets

22

32

Loss (gain) on valuation of investment securities－

132

Decrease (Increase) in notes and accounts
receivable-trade(1,605)

3,642

Decrease (Increase) in inventories

2,637(4,266)

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

513

(360)

(329)

(3,446)

2(561)

Others-net

(177)

88

Subtotal

5,035

(112)

Interest and dividend income received

175

247

Interest expenses paid

(114)

(93)

Income taxes paid (refund)562(2,540)Net cash provided by (used in) operating activities

5,658(2,497)15

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

Millions of yen
March 31,2021

March 31,
2020

Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment(2,950)(6,048)

Payments for purchase of intangible assets

(157)

(181)

Payments for purchase of investment securities

(30)

(203)

Payments for purchase of insurance funds

(326)

(279)

Proceeds from cancellation of insurance funds

490

400

Others-net

(33)

124

(3,007)(6,188)－1,200

Proceeds from long-term loans payable

5,501

3,000

Repayments of long-term loans payable(4,657)(3,489)－5,000

Cash dividends paid

(650)

(1,079)Payments for purchase of treasury stock

(649)

(0)

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

－

(93)

Others-net

42

82

(412)

4,618

Effect of exchange rate change on
cash and cash equivalents

261

(108)

Net increase (decrease)in cash and cash equivalents

2,498(4,175)

Cash and cash equivalents at beginning of year

12,847

17,023

Cash and cash equivalents at end of year

15,346

12,847

Net cash used in investing activities
Cash Flows from Financing Activities:
Net increase (decrease) in short-term borrowings

Proceeds from issuance of bonds

Net cash provided by (used in) financing activities

16

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(5) Notes(Notes on the Premise of a Going Concern)
There are no applicable articles.
(Additional Information)(Accounting procedures for the ESOP trust)At the Board of Directors meeting held on August 7, 2020, and it was decided that the employee incentive plan, an ESOP trust,
would be re-introduced. The aim of this re-introduction is to further enhance the employee benefits system, which supports thegrowth of the Company. We also aim to improve medium- to long-term corporate value and raise awareness among employeesof the Company’s business performance and share price by providing incentives to raise the share price.
Furthermore, the ESOP trust that was introduced in February 2018 was closed on July, 2020, the end date of the trust
designated upon its introduction.

(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 a predeterminedacquisition 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 the Company’s Stock
Ownership Association on a set day every subsequent month. At the end of the term of the trust, if the Trust Account records
a profit due to higher share prices, this profit shall be distributed to the beneficiaries in proportion to their individual
contributions. If the Trust Account records a loss on transfer due to lower share prices and debt is incurred on trust assets, noadditional burden will be imposed on employees as the Company will repay the bank in one lump sum in accordance withthe 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 ¥105 million and 121,000 shares respectively
at March 31, 2020 and ¥446 million and 1,168,000 shares respectively at March 31, 2021.

(3) Carrying Value of Loans Recorded through Application of the Gross Price Method
As of March 31, 2020: ¥252 million; As of March 31, 2021: ¥451 million(Accounting procedures for the share-issuing trust accounts for executives)
The Company provides shares of the Company to directors (excluding outside directors) through trust accounts.
17

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(1) Outline of Trades
At the Board of Directors meeting on May 14, 2020, the Board resolved to introduce a stock compensation system for theCompany’s directors (excluding outside directors) and executive officers. The introduction of the system was approved at the
71st ordinary meeting of shareholders on June 24, 2020, and a trust was established to introduce the system.
The Company contributed funds to set up the trust to acquire the Company’s shares. Under the stock compensation system,
Company shares equivalent to the number of points attributed to each director and executive are issued through the trust toeach director and executive.
Furthermore, as a general rule, directors and executives are issued Company shares upon retirement.

(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 ¥148 million and 468,000 shares respectively
at March 31, 2021.

(Accounting Estimates on the Impact of COVID-19)
Regarding COVID-19 pandemic effects, although it is difficult to accurately forecast when the pandemic might end, we madevarious accounting estimates under the tentative assumption that we are headed toward a recovery in 2021 as vaccinations proceed
according to plan.

(Statement of Changes in Consolidated Shareholders’ Equity)
For the fiscal Year ended March 31, 2021
1. Class and Number of Shares Issued
Increased shares
As of April 1, 2020
during the fiscal year
(Shares)(Shares)Common stock－
73,501,425

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2021
(Shares)

73,501,425

2. Class and Number of Treasury stock
Increased shares
Decreased shares
As of March 31, 2021
during the fiscal year
during the fiscal year
(Shares)(Shares)(Shares)Common stock
1,584,793
1,777,049
729,240
2,632,602
Notes: 1. The 1,636,800 shares held by the share-issuing trust for executives and the ESOP trust are included in treasury stock at
March 31, 2021
2. The increase of 749 shares of treasury stock is due to purchase of odd lot shares of less than one trading unit.
3. The increase of 468,000 shares of treasury stock is due to purchase of treasury stock by the share-issuing trust for
executives.
4. The increase of 1,308,300 shares of treasury stock is due to purchase of treasury stock by the ESOP trust.
5. The decrease of 40 shares of treasury stock is due to sales claims of odd lot shares of less than one trading unit.
6. The decrease of 468,000 shares of treasury stock is due to disposal of the share-issuing trust for executives.
7. The decrease of 261,200 shares of treasury stock is due to sales of shares by the ESOP trust to the Employee
Stock Ownership Association.
As of April 1, 2020
(Shares)

18

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

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
31,2021(Millions of
yen)

As of
April 1, 2020

Increasedsharesduring the
fiscal year

Decreasedsharesduring the
fiscal year

As of March
31, 2021

－

－

－

－

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 24, 2020

Common stock

360

5.00

March 31,2020

June 25,
2020

Board of directors on
November 12, 2020

Common stock

290

4.00

September 30,
2020

December 9,
2020

Notes: 1. Total dividends, based on a resolution at the ordinary general meeting of shareholders held on June 24, 2020, include¥0 million to be paid as dividends on the 121,700 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, 2020, include¥7 million to be paid as dividends on the 1,762,900 shares of treasury stock held to date by the share-issuing trust for
executives and 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 28,of shareholders on
290
4.00
stock
earnings
2021
2021
June 25, 2021
Note: Total dividends include ¥6 million to be paid as dividends on the 1,636,800 shares of treasury stock held to date by theshare-issuing trust for executives and the ESOP trust.

For the fiscal Year ended March 31, 2020
1. Class and Number of Shares Issued
As of April 1, 2019
(Shares)Common stock

73,501,425

Increased shares
during the fiscal year
(Shares)－19

Decreased shares
during the fiscal year
(Shares)－

As of March 31, 2020
(Shares)

73,501,425

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

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.
(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 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.
20

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(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 31,2020
2021
Cash and deposits
12,924
15,489Time deposits with maturity exceeding three months
(76)
(142)
Cash and cash equivalents at end of year
12,847
15,346

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

Millions of yen
March 31,
2021
822
369

Assets related to finance leases
Liabilities related to finance leases

March 31,
2020
821
430

(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.

21

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Fiscal Year Ended March 31, 2021

(Per Share Information)

Yen
March 31,2020
796.63(2.59)－March 31,2021
836.433.02
3.01

Net assets per share
Earnings per share
Diluted earnings per share

Notes: 1. Diluted earnings per share for the fiscal year ending March 31, 2020 has not been recorded, because, although there areresidual securities, the Group posted a net loss per share.
2. 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 31,2021

March 31,
2020

215
－

(185)
－

215

(185)

71,299,324shares

71,803,155shares－
281,758 shares(281,758 shares)

－
－
－

－

－

Notes: 3. 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 share-issuing trust for executives and the ESOP trust are included intreasury stock.

(Important Subsequent Events)
The Company issues unsecured corporate bonds for the 10th time on April 26, 2021 based on a resolution of the Board of Directors
on April 12, 2021.
Overview:
1. Total amount issued: ¥5.0 billion
2. Interest rate: 0.47%
3. Amortization period: 5 years
4. Amortization method: Lump-sum amortization at maturity
5. Amount paid: ¥100 per ¥100
6. Payment deadline: April 26, 2021
7. Use of funds: Allocated to funds to amortize corporate bonds

22