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 13, 2023

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2024
<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 13, 2023
December 11, 2023
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, 2024
(From April 1, 2023 to September 30, 2023)(1) Results of Consolidated Operations(Millions of yen)

September 30, 2023
September 30, 2022

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profitPercentagechange28,48134,340(17.1)
14.1

2,040
4,340

(53.0)
92.3

3,007
6,084

(50.6)
140.1

Notes: Comprehensive income
Six-month period ended September 30, 2023:
4,798 million yen(17.9) %Six-month period ended September 30, 2022:
5,846 million yen
131.6 %: 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, 2023
September 30, 2022

Profitattributable toowners ofparent
1,586
4,195

PercentagechangeEarnings
per share(Yen)(62.2)
93.2

22.23
58.98

1

Dilutedearnings
per share
(Yen)
22.16
58.78

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

(2) Consolidated Financial Position
Total assets(Millions of yen)
Equity ratio
Net assets(%)
per share (Yen)
63.5
1,059.21
62.6
1,003.28

Net assets

September 30, 2023
119,133
75,776
March 31, 2023
114,347
71,662
Reference: Shareholders’ equity
As of September 30, 2023: 75,661 million yen
As of March 31, 2023:
71,541 million yen

2. Dividends(Yen)
Base date2024(Forecast)
2024
2023

June 30

September 30

－
－

9.50
9.00

Dividends per share
December 31－

March 31
9.50

Full Fiscal Year
19.00

－

10.00

19.00

Note: Change in dividend projection: None

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2024

Year ending March
31, 2024

Year ending March
31, 2024

Net sales

PercentagechangeOperatingprofitPercentagechangeOrdinary
profit(Millions of yen)
Percentagechange55,500(18.7)

3,500(63.0)

4,700(55.2)

Profitattributable toowners ofparentPercentagechangeEarnings
per share
(Yen)

2,800

(62.5)

39.56

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.
: Changes from forecasts most recently announced: Yes

2

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

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
Yes
None

Note: For further details, please refer on page 13.
(4) Number of shares issued (Common stock)
Number of shares outstanding at period-end (Including treasury stock)
As of September 30, 2023:
As of March 31, 2023:

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

Number of treasury stock
As of September 30, 2023:
As of March 31, 2023:

2,068,968 shares
2,193,912 shares

Average number of shares outstanding at period-end
Six-month period ended September 30, 2023:
Six-month period ended September 30, 2022:

71,387,353 shares
71,126,620 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 (1,137,400 shares as of 2Q
FY2024 and 1,250,000 shares as of March 31, 2023). 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 (1,182,566 shares as of 2Q FY2024 and 1,415,699
shares as of 2Q FY2023).

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 13, 2023. 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, 2023

5. Operating Results and Financial Position(1) Analysis of Operating Results
In the six-month period ended September 30, 2023, although activities continued to return to normal from thepandemic-era restrictions and signs of a gradual recovery emerged, the outlook remained unclear due in part to the risk ofan economic deceleration caused by global inflation and ongoing financial tightening measures..
Under these circumstances, The Group has taken various measures with the aim of achieving stable profit andgrowth from a medium- to long-term perspective as outlined in “IKO Medium-term Business Plan 2023~Deepening,
Expanding, Embracing Change~.” In addition, we focused on promoting sustainable management, such as by signing onto the U.N. Global Compact.
From a sales perspective, the Group participated in exhibitions at home and abroad. We also worked hard tocultivate demand while engraining the IKO brand in markets by proactively utilizing digital tools to promote sales andstriving to enhance communication with customers.
In terms of product development, we newly developed Short Stud Type Cam Followers, which require as
much as 34% less space in terms of total length for mounting compared with standard products, releasing the new productline for sale in October.
From a production standpoint, the Group restructured its production departments in Japan intofunction-specific organizations for Needle Roller Bearings and Linear Motion Rolling Guides. Through this, we achieved
faster decision making by clarifying roles as we strove to enhance production efficiency, establish supply systems, andenhance quality.
Turning to the Group’s operational results, net sales in the Japanese market decreased amid slowing demandfor electronics-related devices, including mounting equipment, and products for retail sale. In the North American region,
net sales decreased amid slowing demand for electronics-related devices and general industrial machinery, including
precision machinery and various types of medical equipment. In the European region, although demand for machine tools
and products for retail sale stagnated, net sales increased due in part to higher demand for general industrial machinery andthe effects of yen depreciation. In China, net sales decreased due to such factors as stagnation in the real estate market andanemic domestic and overseas demand. Other regions, comprising mainly Singapore, Taiwan, and South Korea, also saw
declines in net sales.
As a result, consolidated net sales for the six-month period under review totaled ¥28,481 million, down 17.1%
year on year. On the earnings front, due mainly to decreased revenue and production, operating profit came to ¥2,040
million, down 53.0% year on year, and ordinary profit came to ¥3,007 million, down 50.6% year on year. Profit
attributable to owners of the parent amounted to ¥1,586 million, down 62.2% year on year.
In addition, the value of Needle Roller Bearings and Linear Motion Rolling Guides produced during thesix-month period under review, totaled ¥26,206 million, down 21.1% year on year (based on average sales prices). The
value of orders placed for these products and Machine Components amounted to ¥22,092 million, down 37.1% year on
year.
4

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

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 ¥25,406 million, 18.1% decrease compared with the corresponding
period of the previous fiscal year. Sales of Machine Components decline 7.2% to ¥3,075 million.
Business Segment Information
Six-month period ended
September 30, 2023
Millions of Component
Yenpercentages
Needle Roller Bearings,
Linear Motion Rolling Guides
Machine Components
Total net sales

Six-month period ended
September 30, 2022
Millions ofComponent
Yenpercentages

ChangeMillions of
Yen

Percentagechange25,40689.2

31,02790.4△5,620

△18.1

3,075
28,481

10.8
100.0

3,313
34,340

9.6
100.0

△238
△5,859△7.2△17.1(2) Summary of Financial Position
Total assets as of September 30, 2023, totaled ¥119,133 million, an increase of ¥4,785 million compared with the end of theprevious fiscal year. This mainly comprised increases in cash and deposits of ¥3,231 million, inventories of ¥3,564 million
and investment securities of ¥1,444 as well as decrease in notes and accounts receivable-trade of ¥2,659 million and deferred
tax assets of ¥848 million.
Total liabilities amounted to ¥43,356 million, an increase of ¥671 million compared with the end of the previous
fiscal year. This mainly comprised increases in accounts payable - other of ¥537 million and long-term borrowings of¥3,667 million as well as decrease in notes and accounts payable-trade of ¥1,898 million and income taxes payable of¥1,597 million.
Total net assets amounted to ¥75,776 million, an increase of ¥4,114 million compared with the end of theprevious fiscal year. This mainly comprised an increases in retained earnings of ¥861 million, valuation difference on
available-for-sale securities of ¥1,012 million and foreign currency translation adjustments of ¥2,196 million.

Cash Flows
Cash and cash equivalents as of September 30, 2023 totaled ¥21,820 million, an increase of ¥3,226 million compared withthe end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥990 million, a decrease of ¥1,046 million at the corresponding
period of the previous fiscal year. The major inflows were profit before income taxes of ¥3,007 million, depreciation andamortization of ¥1,652 million and decrease in trade receivables of ¥2,987 million, while the major outflows were increase
in inventories of ¥1,985 million, decrease in trade payables of ¥2,200 million and income taxes paid of ¥2,484 million.
Cash Flows from Investing Activities
Net cash used in investing activities amounted to ¥1,252 million, an increase of ¥62 million at the corresponding period of
the previous fiscal year. This result was payments for purchase of property, plant and equipment of ¥1,063million.
5

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

Cash Flows from Financing Activities
Net cash provided by financing activities was ¥2,874 million. This was outflow of ¥661 million at the corresponding periodof the previous fiscal year. The major inflow was proceeds from long-term borrowings of ¥5,600 million, while the major
outflows were net decrease in repayments of long-term borrowings of ¥1,932 million and cash dividends paid of ¥726
million.

(3) Outlook
Looking to the future, the Group expects continued adjustments in domestic and overseas demand against a backdrop ofconcern regarding stagnation in the Chinese economy as well as soaring material costs and energy prices due to global
financial tightening and the prolongation of the Ukraine situation.
In light of these conditions and the results of the first half of the fiscal year, the Group is forecasting consolidated
net sales of ¥55,500 million, operating profit of ¥3,500 million, ordinary profit of ¥4,700 million and profit attributable toowners of the parent of ¥2,800 million for the year ending March 31, 2024.

6

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

6. Consolidated Financial Statements(1) Consolidated Balance Sheets

As of September 30, 2023 and March 31, 2023
Millions of yen
March 31,
September 30,
2023
2023

ASSETS
Current Assets:
Cash and deposits
Notes and accounts receivable-tradeFinished products
Work 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

22,08014,613
19,82812,736
9,183
1,539
(11)
79,97018,84817,272
17,477
11,882
8,823
2,329
(10)
76,624

10,222
12,884
23,107
1,101

9,849
12,60422,453
1,056

10,5574,423(26)
14,954
39,162

9,113
5,126
(26)
14,212
37,723

119,133

114,347

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

Millions of yen
March 31,
September 30,
2023
2023

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

9,696
4,668
1,215
36
6,610
22,227

11,595
3,786
2,813
92
6,050
24,337

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
9,503
32
126
1,466
21,12910,000
6,718
30
110
1,488
18,348TOTAL LIABILITIES

43,356

42,685

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

9,533
12,88645,052(869)
66,603

9,533
12,88644,191(917)
65,693

Accumulated Other Comprehensive Income:
Valuation difference 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

4,127
―
4,958
(26)
9,058
114

3,115
(2)
2,761
(27)
5,847
121

TOTAL NET ASSETS

75,776

71,662TOTAL LIABILITIES AND NET ASSETS

119,133

114,347

NET ASSETS

8

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

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

For the six-month period ended September 30, 2023 and 2022
Millions of yen
September 30,
September 30,
2022
2023
Net Sales
Cost of Sales

28,481
18,9669,514
7,474

34,34022,553
11,787
7,446

2,040

4,340

21
155
722
142
1,043

13
147
1,444
207
1,813

52
23
76

52
17
69

Ordinary Profit

3,007

6,084

Profit Before Income Taxes

3,007

6,084

1,420
1,586
―
1,586

1,889
4,195
―
4,195

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
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, 2023

Consolidated Statements of Comprehensive Income

For the six-month period ended September 30, 2023 and 2022
Millions of yen
September 30,
September 30,
2022
2023
ProfitOther Comprehensive Income:Net unrealized holding gains on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total Other Comprehensive Income
Comprehensive Income
Breakdown:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

10

1,586

4,195

1,012
2
2,196
0
3,211
4,798

(761)
―
2,457
(44)
1,651
5,846

4,798
―

5,846
―

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

(3) Consolidated Statements of Cash Flows

For the six-month period ended September 30, 2023 and 2022
Millions of yen
September 30,
2023

September 30,
2022

Profit before Income Taxes

3,007

6,084

Depreciation and amortization

1,652

1,785

Increase (Decrease) in account reserve

(55)

(50)

Increase (Decrease) in net defined benefit liabilities

(32)

(36)

Interest and dividend income

(177)

(161)

52

52

Foreign exchange losses (gains)

(395)

(922)

Loss on retirement of fixed assets

51

Decrease (Increase) in trade receivables

2,987(1,631)

Decrease (Increase) in inventories(1,985)(1,320)

Increase (Decrease) in trade payables(2,200)(537)

Increase (Decrease) in accrued expenses

(249)

191

Others-net

738

691

Subtotal

3,346

4,147

Interest and dividend income received

177

161

Interest expenses paid

(49)

(65)

Income taxes paid

(2,484)(2,205)

990

2,037

Cash Flows from Operating Activities:

Interest expenses

Net cash provided by (used in) operating activities

11

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

Millions of yen
September 30,
September 30,
2022
2023
Cash Flows from Investing Activities:
Payments for purchase of property,
plant and equipment(1,063)(973)

Payments for purchase of intangible assets

(92)

(18)

Others-net

(96)

(198)

(1,252)(1,190)―(2,200)

Proceeds from long-term borrowings

5,600

4,000

Repayments of long-term borrowings(1,932)(1,837)

Cash dividends paid

(726)

(505)

Payments for purchase of treasury stock

(0)

(0)

Others-net

(65)

(118)

Net cash provided by (used in) financing activities

2,874

(661)

Effect of exchange rate change on cash and cash equivalents

613

976

Net increase (decrease)in cash and cash equivalents

3,226

1,162

Cash and cash equivalents at beginning of year

18,593

17,847

Cash and cash equivalents at end of period

21,82019,009Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:
Net increase (decrease) in short-term borrowings

12

NIPPON THOMPSON CO., LTD. (6480)
Financial Results for the Second Quarter Ended September 30, 2023

(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.
(7) Changes in accounting estimates
Evaluation of Inventory Assets
To determine the value of inventory assets, the Company formulates evaluation rates based on the inventory storage
periods for each product, as well as past sales and consumption records. Based on these rates, the value of stagnant inventoryis written down accordingly.
Five years have passed since a mission-critical system was introduced in the 69th fiscal period, so we conducted a survey
based on accumulated detailed data to reassess the status of any stagnation within categories of inventory, categories of
products, and multiple categories of standards and special types. We also conducted a study of the future consumption
probability in light of past sales and consumption conditions. In line with the current status, we revised the evaluation rates forstagnation. From the first quarter of the fiscal year under review, stagnant inventory is now written down based on the new
evaluation rates to more appropriately reflect the declining profitability related to inventory assets in the financial position andoperating results.
As a result, in comparison with previous methods, cost of sales in the second quarter of the fiscal year under review
increased ¥359 million while operating income, ordinary income, and income before income taxes each decreased by asimilar amount.

13