Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

August 8, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Under Japanese GAAP)
Company name:NIPPON THOMPSON CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code:
6480
URL:
https://www.ikont.co.jp/eg/
Representative:
Shigeki Miyachi, President and Representative Director
Inquiries:
Takanori Kojima, General Manager of Accounting Department
Telephone:+81-3-3448-5824
Scheduled date to commence dividend payments:—Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30,2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2024

13,006(10.9)

69(93.3)

809(52.9)(319)—

June 30, 2023

14,595(12.9)

1,041(44.4)

1,718(46.5)

1,209(43.5)

Note: Comprehensive income

For the three months ended June 30, 2024:
For the three months ended June 30, 2023:

Basic earnings
per share
Three months ended¥1,599 million¥3,818 million[(58.1)%][19.2%]

Diluted earnings
per shareYenYen

June 30, 2024

(4.64)—

June 30, 2023

16.95

16.90

(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Net assets per share

Millions of yen

June 30, 2024

123,492

77,10362.4

1,117.39

March 31, 2024

119,187

76,16463.8

1,104.33

Reference:

EquityAs of June 30, 2024:
As of March 31, 2024:¥77,003 million¥76,049 million%

Yen

Millions of yen

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025—

Fiscal year-end

TotalYen

Yen

9.50—

9.50

19.00

9.50

—

9.50

19.00

—

Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024 toMarch 31, 2025)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

Six-month period ending
September 30, 2024

26,800(5.9)

1,000 (51.0)

1,800 (40.1)

Full year

56,0001.7

3,1004,100(2.0)

Note: Revisions to the financial result forecast most recently announced: Yes(9.4)

Basicearnings
per share%Yen

400 (74.8)

5.80

2,100 (21.5)

30.43

* Notes(1) Significant changes in the scope of consolidation during the period: None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
Yes
Note: For further details, please refer to “2. Quarterly Consolidated Financial Statements and Principal Notes(3) Notes to Quarterly Consolidated Financial Statements (Accounting Methods Adopted Particularlyfor the Preparation of Quarterly Consolidated Financial Statements)” on page 7.
(3) Changes in accounting principles and accounting estimates, and restatements(i) Changes in accounting principles arising from revision of accounting standards: None(ii) Changes other than those in above: None(iii) Changes in accounting estimates: None(iv) Restatements: None
(4) Number of shares issued (Common stock)(i)

Number of shares outstanding at period-end (Including treasury stock)
As of June 30, 2024

73,501,425 shares

As of March 31, 2024

73,501,425 shares(ii) Number of treasury shares
As of June 30, 2024

4,587,217 shares

As of March 31, 2024

4,636,377 shares(iii) Average number of shares outstanding at period-end
Three months ended June 30, 2024

68,888,035 shares

Three months ended June 30, 2023

71,350,020 shares

Note: The number of treasury shares at the end of the period includes Nippon Thompson shares held by theshare-issuing trust account for executives and by the employee stock ownership plan (ESOP) trust
account (1,507,500 shares as of June 30, 2024 and 1,527,800 shares as of March 31, 2024). In thecalculation of the average number of shares outstanding during the period, Nippon Thompson shares
held by the share-issuing trust account for executives and the ESOP trust account are included inexcluded treasury stock (1,514,366 shares as of June 30, 2024 and 1,219,966 shares as of June 30,2023).
* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm: Yes (voluntary)* Proper use of earnings forecasts, and other special matters
Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the“Group”) as of the date of this document, August 8, 2024. 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 “1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated
Financial Results Forecast and Other Forward-looking Information” on page 2.

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the three months ended June 30, 2024, countries around the world kept their monetary policies tight, andtensions in the Middle East raised geopolitical risks. The outlook for the global economy remained uncertain.
Against this backdrop, in April this year the Group launched “IKO Medium-term Business Plan 2026
Connect for Growth —The Future of Innovation, Connected by IKO—.” In our basic policy for the plan, we aim
to boost profitability and efficiency through focused enhancement in areas of strength. At the same time, we willdrive growth by rebuilding the global business structure. Based on this policy, we have been working on measures
to tackle our key challenges.
From a sales perspective, in April this year the Group established the Mechatronics Unit Sales Promotion
Office. This new division offers solutions to the challenges our customers face as labor shortages drive growing
demand for factory automation. We also proactively participated in trade exhibitions in Japan and overseas andhosted private shows as we strove to ingrain the IKO brand in the market and cultivate demand.
In terms of product development, our technical and development departments engaged directly withcustomers mainly through private shows. This has strengthened our market-in development approach ofaccurately identifying market needs and issues as we work to create innovative new products.
From a production standpoint, we moved to strengthen our global supply system. As part of this effort, wegeared up for the start of operations at our new factory in Vietnam in 2026. We also worked closely with ourbases in China and Japan to optimize our supply system.
Turning to the Group’s operational results, net sales decreased from the same period of the previous year.
However, recent net orders have shown signs of recovery. In Japan, demand for machine tools, commercial
application products, and electronics-related devices such as semiconductor manufacturing equipment slowed,
leading to a drop in net sales. In North America, demand for electronics-related devices and transportationequipment slowed. However, increased demand for general industrial machinery such as robots, along with thepositive impact of a weaker yen, led to higher net sales. In Europe, demand for general industrial machinery,including precision machinery, and commercial application products slowed down. This led to a decrease in netsales. In China, domestic demand remained weak, leading to a fall in net sales. Other regions, comprising mainlyin Singapore, India, and South Korea, also saw declines in net sales.
As a result, consolidated net sales for the three months ended June 30, 2024 totaled ¥13,006 million, down
10.9% year on year. On the earnings front, operating profit decreased by 93.3% year on year to ¥69 million due
mainly to a decrease in net sales and a decrease in production volume as well as write-downs of inventories.
Ordinary profit came to ¥809 million due mainly to the recording of foreign exchange gains but decreased by
52.9% year on year. Due to an increase in tax burden caused by a reversal of deferred tax assets, however, theGroup posted loss attributable to owners of parent of ¥319 million (compared with profit attributable to ownersof parent of ¥1,209 million in the corresponding period of the previous fiscal year).
In the three months ended June 30, 2024, net production of Needle Roller Bearings and Linear Motion
Rolling Guides was ¥11,444 million based on average sales price, down 13.0% year on year. And, net orders ofNeedle Roller Bearings, Liner Motion Rolling Guides and Machine Components were up 28.3% to ¥13,920
million.
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 ofNeedle Roller Bearings and Linear Motion Rolling Guides totaled ¥11,615 million, down 11.7% compared withthe corresponding period of the previous fiscal year. Sales of Machine Components decreased 3.3% year on yearto ¥1,391 million.

1Business Segment Information
Three months ended
June 30, 2024
Millions of Component
yenpercentages

Three months ended
June 30, 2023
Millions of Component
yenpercentages

ChangeMillions ofyen

PercentagechangeNeedle Roller Bearings,
Linear Motion Rolling
Guides11,615

89.3

13,15790.1(1,542)(11.7)

Machine Components

1,391

10.7

1,438

9.9

(46)

(3.3)

13,006100.0

14,595100.0(1,588)(10.9)

Total net sales(2) Explanation of Financial Position
Total assets as of June 30, 2024, totaled ¥123,492 million, an increase of ¥4,304 million compared with the endof the previous fiscal year. This mainly comprised increases in cash and deposits of ¥3,634 million and tangible
fixed assets of ¥794 million and investment securities of ¥457 million as well as a decrease in other accounts
receivable of ¥888 million.
Total liabilities amounted to ¥46,388 million, an increase of ¥3,366 million compared with the end of theprevious fiscal year. This mainly comprised increases in long-term borrowings of ¥7,413 million and deferred
tax liabilities of ¥646 million as well as a decrease in short-term borrowings of ¥5,000 million.
Total net assets amounted to ¥77,103 million, an increase of ¥938 million compared with the end of theprevious fiscal year. This mainly comprised increases in valuation difference on available-for-sale securities of¥316 million and foreign currency translation adjustments of ¥1,640 million as well as a decrease in retainedearnings of ¥989 million.
(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
For the six months ending September 30, 2024 and the fiscal year ending March 31, 2025, the Group revised theconsolidated operating performance forecasts it had announced announced on May 13, 2024. For details, pleaserefer to the “Notice on the Revision of Forecast of Consolidated Operating Performance.”2

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of June 30, 2024
AssetsCurrent 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

3

As of March 31, 2024

23,407
13,26820,48012,3799,329
1,600(11)80,454

19,773
13,435
20,262
12,101
9,439
2,484
(10)
77,486

11,797
12,92324,721
1,802

10,804
13,122
23,926
1,650

12,2834,257(26)
16,51443,037
123,492

11,826
4,323(26)
16,122
41,700119,187(Millions of yen)
As of June 30, 2024
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds
Current portion of long-term borrowings
Income taxes payable
Allowance for directors’ and corporate auditors’
bonuses
OthersTotal current liabilities
Non-current liabilities
Corporate bonds
Long-term borrowings
Net defined benefit liabilities
Provision for share-based remuneration for directors
OthersTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
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
Total net assets
Total liabilities and net assets

4

As of March 31, 2024

4,271
–
5,000
7,293
588

4,590
5,000
5,000
5,054
361

13

65

5,674
22,8395,312
25,3835,000
16,34133
201
1,972
23,54846,3885,000
11,16632
179
1,261
17,63943,022

9,533
12,88644,461(2,406)64,474

9,533
12,88645,451(2,430)65,440

5,324
(8)
7,034
178
12,528
99
77,103
123,492

5,007
(1)
5,394
208
10,609114
76,164
119,187

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
OthersTotal non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

For the three months ended
June 30, 2024
13,006
9,129
3,877
3,80769For the three months ended
June 30, 2023
14,595
9,763
4,832
3,791
1,041

20
152
547
70
792

9
140
498
69717

41
10
52
809
809
1,129(319)–(319)

23
16
39
1,718
1,718
508
1,209
–
1,209

5

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30(Millions of yen)

Profit (loss)
Other comprehensive income
Net unrealized holding gains on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive incomeComprehensive income
Breakdown:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the three months ended
June 30, 2024(319)

For the three months ended
June 30, 2023
1,209

316

985

(7)
1,640(30)
1,919
1,599

0
1,622(0)
2,608
3,818

1,599

3,818––

6

(3) Notes to Quarterly Consolidated Financial Statements(Notes on the Framework for Financial Reporting)
The Group prepares quarterly consolidated financial statements in accordance with Article 4 (1) of the Standards
for Preparation of Quarterly Financial Statements, etc. issued by Tokyo Stock Exchange, Inc. and accounting
standards for quarterly financial statements generally accepted in Japan, applying the omissions prescribed inArticle 4 (2) of the Standards for Preparation of Quarterly Financial Statements, etc.
(Notes on the Premise of a Going Concern)
Not applicable.

(Notes in Case of Significant Changes in Shareholders’ Equity)
Not applicable.
(Accounting Methods Adopted Particularly for the Preparation of 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 first quarter, andmultiplying profit before income taxes by said estimated effective tax rate.
(Notes on Segment Information)
The Group operates manufactures and sells Needle Roller Bearings, Linear Motion Rolling Guides and Machine
Components on an integrated basis, so the disclosure of segment information has been omitted.
(Notes on Statements of Cash Flows)
We have not prepared a quarterly consolidated statements of cash flows for the three months ended June 30, 2024.
During the three-month period, depreciation and amortization, including those for intangible fixed assets, wereas follows.
(Millions of yen)
For the three months ended
June 30, 2024

For the three months ended
June 30, 2023

812822

Depreciation and amortization7