Integrated
Report2022
April 1, 2021–March 31, 2022

Management Philosophy

A Company Centered on
Technology Development That
Contributes to Society
At Nippon Thompson, we have earned the trust of our customers
by focusing on their needs and through the manufacture and sale ofContents—Nippon Thompson’s Value Creation—
Management Philosophy······································· 01
At a Glance····························································· 03
Value Creation Trajectory······································· 05
Message from the CEO·········································· 07
Value Creation Process··········································· 11
Source of Value Creation········································ 13
Materiality (Key Issues)··········································· 15
History of Growth Strategies·································· 17
Medium-Term Business Plan 2023························ 19

important mechanical components, such as bearings and bearing-related

Business Overview················································· 21

equipment. In order to further grow as a global company and have a

Business Strategy·················································· 23

strong presence, we aim to become a company centered on technology

Financial Strategy··················································· 27

development that focuses all of our expertise and passion into solving
the problems of our customers.

Editorial Policy
Nippon Thompson has published our first Integrated Report toinform all stakeholders of our initiatives to create sustainablesocial value and improve our Group value over the medium
to long term. It is our hope that this report will help you gain adeeper understanding of our group from both the financial andnonfinancial perspectives.

—ESG Management—
Sustainable Management Promotion····················· 29—ESG Management: The Environment—
Environmental Considerations during

Contribution to society

Reporting Period
April 1, 2021–March 31, 2022
* In this report, FY means the fiscal year ending/ended March 31.
* The report includes some activities from before as well as after thereporting period.

Business Operations··································· 31
Responding to Climate Change·················· 35

Scope of Reporting
Nippon Thompson Co., Ltd. and consolidated subsidiaries* In this report, “the Company” refers to Nippon Thompson on—ESG Management: Social Issues—
Pursuing Product Quality and Safety·········· 37

Problem solving forour customers

Human Capital············································· 38
Supply Chain Management························· 41
Co-existence with Local Communities andSocial Contribution······································ 42—ESG Management: Governance—
Corporate Governance································ 43
Message from the Outside Director············ 46
Officers and Skills Matrix···························· 47

Nippon Thompson's

nowhow
Accumulation andutilization of technology andinformation—innovation, knowhow and originality—with products that are artfully creative and based on advanced technology.

1

Nippon Thompson Co., Ltd. Integrated Report 2022

Risk Management······································· 49

riginality
Product development withingenious creativity

brand name is an acronym of the company's core beliefs

Thompson Group.

Reference Guidelines• International Integrated Reporting Framework by theInternational Financial Reporting Standards Foundation(IFRS)• Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogue for Collaborative Value Creation

Highly efficient management,high value-added products

nnovation
Innovative thoughts andactionsa nonconsolidated basis and “the Group” refers to the Nippon

Compliance················································· 50

by the Ministry of Economy, Trade and Industry (METI)• Environmental Reporting Guidelines 2018 by the Ministry of
the Environment• GRI Sustainability Reporting Standards by the Global
Reporting Initiative

Cautionary Statement Regarding Forward-Looking
Statements
Forward-looking statements in this report, such as
performance forecasts, are based on the Company’s—Data—Key Financial and Nonfinancial Data for the Past
11 Years·································································· 51
Company Profile and Stock Information················ 53

assessment following information available at this time,and involve potential risks, uncertainties, and other factors.
Therefore, please note that changes in these factors could
cause actual results to differ substantially from those
discussed in the forward-looking statements.

Nippon Thompson Co., Ltd. Integrated Report 2022

2

Nippon Thompson’s Value Creation

Establishment

Net Sales

Operating profit

Equity Ratio

ROE

Number of Employees

1950

62.2 billion yen

5.8 billion yen

59.6%

6.7%

2,688

Needle Roller Bearings

Electronics-related Devices and Equipment

Machine Tools

General Industrial Machinery

Semiconductor manufacturing equipment(exposure equipment)

Machining centers

Dual-armed SCARA robots

C-Lube linear way ML

Semiconductor inspection equipment (handlers)

Our Linear Motion Rolling Guides arean essential part of the positioning
mechanisms in many types of machines.
Used in a wide range of equipment,from state-of-the-art semiconductor
manufacturing equipment to machine
tools, Linear Motion Rolling Guides
support manufacturing in just about
every industry.

Nano linear

Shell type needle
roller bearings

Cam followers

Machined type needle
roller bearings

Surgical support robots

Electronic component mounting machines
Motorcycles

Linear ball spline G

Linear ball spline G

Needle cage

Net sales composition ratio(by product and region)
Machine components
6.3 billion yen
Others10%
7.4
billion yen
12%

Global business fields

Spherical bushings

ESG Management Governance

The Mechatronics Series combines
precision processing technology andelectronics. A linear motion rolling guide,ball screw, and motor are integrated
between the bed and the slide table toachieve precise positioning and to movethings efficiently to their proper location.

Bearings, etc.*
Europe55.9 billion yen
5.7
90%
billion yen
9%Americas
7.2 billion yen
12%Printing machines

C-Lube linear way H

Mechatronics Series

L-balls

Main production sites

Number of global offices

13 countries

Japan
31.6
billion yen
51%

54 business locations

Data

China
10.2 billion yen
16%

Transportation Equipment
Platform doors

Linear motor tables

Crossed roller bearings

ESG Management Society

Linear Motion Rolling Guides

C-Lube linear roller ｗay
Super X

ESG Management Environment

Application Fields

ESG Management(Consolidated, fiscal year ended March 31, 2022)

Main Products

We were the first company to successfully
develop needle bearings in Japan. Needle
bearings are bearings with thin, needleshaped rollers. They are used in a wide
variety of products, and they contribute to
making machines more compact.

Nippon Thompson’s Value Creation

At a Glance(including 30 are overseas business sites)

4 production sites
50 sales sites

Gifu factory complex (Japan)

IKO Thompson Vietnam Co., Ltd. (Vietnam)

UBC (Suzhou) Bearing Co., Ltd. (China)* Bearings, etc.:
Needle roller bearings, linear motion rolling guides, Mechatronics series

3

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Value Creation Trajectory

Trends in Net Sales(Billions of yen)60

From 1970
Growth and Expansion

From 1990
Maturity and Transition

From 2010
Change and Dynamism

The Company, established as Daiichi-Kogyo Co., Ltd., selling bearingsand other products, became the first company in Japan to successfully
develop needle roller bearings inhouse. The Company name was

We started global business expansion by establishing overseas
sales subsidiaries, and strived for business growth by launching
the production and sales of linear motion rolling guides toincrease the scope for using rotary bearings in flat slide sections.

We made every effort to contribute to the global environment
by acquiring ISO 14001 certification, developing products that
contribute to reducing the negative impact on the environment.
In addition, we established our first overseas production factory,
in Vietnam, to build a global production system.

We expanded our overseas operations with the aim of becoming
a company with a competitive edge and presence in the global
marketplace. In 2021 we formulated our Basic Sustainability Policy,
and we are working hard to achieve both sustainable growth for ourGroup and social sustainability.

1991

as a symbol of the Company’s
Launched the new
management philosophy.
Innovation Knowhow & Originality

2012

Launched the Company’s first
Business Plan.

2014

Established IKO Thompson Asia Co., Ltd. in Thailand.

1997

Acquired ISO 9002 certification for Gifu Factory 3 andGifu Factory 5 at the Gifu factory complex (subsequently
acquired by the First, Second, Sixth and Kamakura
Factory and acquired ISO 9001 certification).

2015

Established IKO Thompson Korea Co., Ltd. in South Korea.
Established IKO Brasil Serviços Empresariais Eireli In Brazil.

2016

Established IKO Thompson Bearings Canada, Inc. in
Canada.

1956

Began R&D for needle roller bearings.

1971

Established IKO International, Inc. in Illinois, USA.

1972

Established Technological Laboratory in Kamakura,
Kanagawa.

1959

Established the Himeji Factory in Himeji, Hyogo, and began
manufacturing needle roller bearings.

1975

Established Nippon Thompson Europe B.V. in
Rotterdam, the Netherlands.

1963

Changed the company name to Nippon Thompson Co., Ltd.
as the corporate brand.
Registered and trademarked

1982

Entered into a capital alliance with DarumaSangyo Co., Ltd. in Gifu (currently a consolidated
subsidiary: Nippon DIC Co., Ltd. in Nagoya).

1964

Established the Kamakura Factory in Kamakura, Kanagawa.

1985

Established the Technical Center at the Gifu factorycomplex.

1968

Stock listed on the First Section of the Tokyo Stock Exchange
and the Osaka Securities Exchange.

1989

Established Mugegawa MFG. Co., Ltd. in Seki, Gifu
(currently the Mugegawa Factory).

1969

Established the Gifu factory complex in Mino, Gifu.

Began production of needle roller bearings incorporating thinneedle-shaped rollers. Catalogs at that time show items thatare still being manufactured and sold today.

Acquired ISO 14001 certification for Gifu factory complex(also certified in Kamakura site in 2003).

2003

Created our own Green Procurement Standards.

2004

Acquired Gifu Environmentally Conscious Business
Facility Certificate in Gifu factory complex.

2006

Founding and Early Days
1959

2001

Established IKO-Thompson (Shanghai) Ltd. (China).
Established IKO Thompson Vietnam Co., Ltd. in
Vietnam.

Growth and Expansion
1978

Needles

Introduced linear motion rolling guides, an evolution ofrotary bearings to linear motion.

2017

Acquired two companies engaged in the manufacturing
and sales of bearings in China; UBC (Shanghai)
Precision Bearing Mfg. Co., Ltd. and UBC (Suzhou
Bearing Co., Ltd.)

2021

Formulated the Basic Sustainability Policy.

2022

Transferred shares to the Tokyo Stock Exchange Prime
Market.

LinearLaunched a high-precision linear motor-driven stage in arigorous pursuit of compactness.

30

20

10

0

Maturity and Transition
1996

Medium-Term

ESG Management Environment

Daiichi-Kogyo Co., Ltd., the predecessor of Nippon
Thompson Co., Ltd., is established.

40

Change and Dynamism
2016

Mechatronics

ESG Management Society

1950

50

ESG Management

From 1950
Founding and Early Days

, the corporatechanged to Nippon Thompson Co., Ltd., andbrand, was registered as a trademark, laying the foundation for today’s
business activities.

Nippon Thompson’s Value Creation

Nippon Thompson’s Value Creation

Launched the linear roller way, which achieves the ultimate
in high precision (low fluctuation specification).
LinearMachineIndustrial
DesignAward

A motorcycle with needle cages for engine connecting rods
won first place in the Isle of Man Tourist Trophy (TT) motorcycle
race in Great Britain, attracting much attention.

1982

Introduced a modular product incorporating the Linear
series, ball screws, and motors.

2002

Mechatronics

NeedlesDeveloped crossed roller bearings that can simultaneously
support loads in all directions with a single bearing.

1983

Introduced the world’s first roller recirculating type linear
motion rolling guide.
Linear2019

LinearMechatronics Product CPT

1964

Launched a maintenance-free series of linear motion
rolling guide.

MX master grade

Launched the world’s first liquid crystal lubrication linear
way.
LinearC-Lube linear way L*

2008

ESG Management Governance

1960

Nano-Linear NT

Launched ultra-compact ball screw drive stages.
Mechatronics

Liquid crystal lubrication linear way

2020

Linear Way L is used for NASA Mars rover.
Linear

Data

Ball recirculating type linear motion rolling guide LW

NeedlesLinear Roller Way LRW

Micro Precision Positioning Table™
* IKO’s proprietary lubrication component, C-Lube, is used in many of our products. C-Lube minimizes the use of lubrication oil and supplies
the optimal amount of lubrication oil for long period, so it is maintenance free over the long term and contributes to preserving the global
environment.

5

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6

Message from the CEO

Nippon Thompson’s Value Creation

Message from the CEO

Nippon Thompson’s Value CreationFor
customers
senior managing director at the time agreed with my idea,
and we made a start on formulating the first medium-term

Trusted, highly regarded, andconsulted firstbusiness plan that covered the following three years. In
drafting this plan, we had thorough discussions among themanagers and employees about the future direction andstrengths of the Group, which fostered a sense of unity
among the employees that transcended the boundaries

For
shareholders

For
suppliers

Continually increasing
corporate value

Long-term win-win
partnersGroupthink it was also an enormous achievement to share, among
the Group’s employees working around the world, thephilosophy and values that are cherished by the Company.

Nippon Thompson’s visionthat our business partners can establish a long-term win-fundamentals of management within the Group, specificallywin partnership with; employees can fulfill their professional

the reexamination of our management philosophy and thegoals through their work and keep their dreams alive; anddesign of our future vision.

have the No. 1 competitive advantage in niche markets,

strategy of the Group to all of our stakeholders. We hopethat the Integrated Report 2022 will help your understanding

importance of always considering what is best from thelong-established philosophy, “A Company Centered on

viewpoint of our stakeholders and acting accordingly whenTechnology Development That Contributes to Society”

formulating and implementing our management plans andaccurately expresses the essential value of the Group.

business strategies, and have made this the cornerstone for

For this reason, we decided that we would once again

formulating medium-term business plans.

promote this credo—passed down by our predecessors

Global society is currently facing a period of historicfrom generation to generation and cherished as a guidelinechange, with the digital shift, the evolution of AI and IoT,

for action—as our banner for paving the way to the future.

and social demands for sustainability, including the SDGs.

The realization of the Group’s Management Philosophy

In these times, it is essential for us to take the next leapof “A Company Centered on Technology Development

forward step by step through the steady implementation

That Contributes to Society” is supported by the threeof our medium-term business plan, while maintaining thecomponents of our brand name: I = innovation (revolutionary

corporate culture we have cultivated as a Group. We areof the Group’s superiority and is an asset that must be

thoughts and actions), K = knowhow (accumulation and use

determined to make every effort to achieve the goals set out

passed on to the next generation.

of technology and information), and O = originality (highlyin Medium-Term Business Plan 2023, under the banner ofcreative product development). Since registering IKO as a

the management philosophy that has been entrusted to us

trademark in 1963, we have carefully nurtured this brand.

as the IKO brand, in order to realize our ideal vision.

What we have focused on in ourmanagement to date

IKO was the first in Japan to successfully develop needle
roller bearings inhouse and is a symbol of outstanding

Medium-Term Business Plan 2023:
Deepening, expanding, and embracing changeof the Group, and that it will becomes a medium for

When I became Managing Director and General Manager oftechnology and quality. Today, IKO is recognized as a global

deepening the bonds between the Group and all our

the Corporate Planning Department in 2010, my first major

brand in the machinery industry, including semiconductor

stakeholders.

task was to formulate a medium-term business plan. Until

manufacturing equipment and machine tools, and is highly

After implementing the third of our three-year medium-that time, we had never developed a medium-term businessregarded as a symbol of trust.

term business plans, in May 2021, we announced Medium-

After working for 29 years in financial institutions, I joined
Nippon Thompson in 2008, and was appointed President &plan because the demand for our products is highly

Since our establishment in 1950, we have conducted

Term Business Plan 2023, which will conclude in the fiscal

CEO in 2012.

volatile and the business environment is difficult to predict.

business with the support of a wide range of stakeholders.

year ending March 31, 2024. What makes Medium-Term

However, for the Group to grow sustainably, it is essential

Based on this history, we have identified five stakeholders—Business Plan 2023 different from the first three plans is

Company was the earnestness and sincerity of thefor all employees to understand and share the vision of whatcustomers, shareholders, business partners, employees,that it incorporates the opinions and thoughts of many

employees. Every employee is sincere in his or her work

we are aiming for in the future and to mobilize our combined

and competitors— and have outlined the kind of company

junior employees. In addition to the management team,and works hard to tackle challenges. I believe that thisstrengths. In addition, as part of the process of realizing ourthat we want to be for each of them. We have reaffirmed our

mid-level employees such as general managers anddedication to work is the reason customers and society

long-term vision, it is necessary to formulate a medium-aspiration to be a company that is trusted, highly regarded,

section managers, who will be responsible for the future

trust Nippon Thompson, and that this integrity guarantees

term business plan for three to five years and to continue

and consulted first by our customers; that can continuallyof Nippon Thompson, were also invited to participate in

the high quality of our products.

with these initiatives. Fortunately for us, the president andincrease corporate value for shareholders and investors;

lively discussions regarding the ideal state of the Group andWhat particularly impressed me when I joined the7deeply we discussed it, the more we realized that ouron the importance of working with integrity, is the foundation

On this occasion, we decided to publish the Integrated
Report to communicate the current state and growthcompared with our competitors. We also reaffirmed the

Nippon Thompson Co., Ltd. Integrated Report 2022

ESG Management Society

The sincere attitude of every employee
is the source of our trust, reliability, andhigh quality.

We believe that our corporate culture, with the emphasis

ESG Management Environment

plan, we have spent a lot of time discussing the

ESG Management GovernancePresident and CEO

Number 1
Fulfilling professional needs
competitive advantage
through work andin niche markets
keeping dreams alive

Since the formulation of our first medium-term businessFirst, looking at our management philosophy, the more

Shigeki Miyachi

Forcompetitors

Nippon Thompson Co., Ltd. Integrated Report 2022

Data

With our corporate culture of integrity,
we are committed to enhancing the value of the IKO
brand and helping to resolve social issues,
to create a corporate group that is trusted by all of
our stakeholders.

For
employees

ESG Managementof the organizational silos. Looking back on those days, I

8working to strengthen management oversight and tothat our plan appeals to a wide range of generations, as

in lubrication, is an environmentally friendly product that

ensure effective, speedy decision-making. Three of the

we have embodied in the strategies and initiatives the fresh

achieves maintenance-free operation for long periods

nine members of the Board of Directors are from outsideideas and strong aspirations that our junior employees haveof time, due to its oil-minimizing construction. The

IKO, and a female independent outside director was

We position the distribution of profits to shareholders

for the Company.

Group considers it an important mission to contribute toappointed at the General Meeting of Shareholders held

as an important management issue, and are mindful ofIn formulating the plan, we first set IKO VISION 2030

sustainability in all aspects of society, the economy, and thein June 2022. In addition, given the current status of ourboth maintaining stable dividends and adding to internal

for reaching the goal of co-creating value as a technology

environment, by developing proprietary technologies andglobal operations, with numerous local staff in the U.S.,

reserves. For the fiscal year ended March 31, 2022, thedevelopment based company—co-creating a sustainableproducts, and by strengthening our management structure.

Europe, China, Vietnam, and other countries, we intend toCompany paid an annual dividend of 13 yen per share, forfuture (consolidated net sales of 100 billion yen or more,

Therefore, in conjunction with the formulation of Medium-

ensure further diversity by appointing overseas nationals

a consolidated payout ratio of 22.3%. For the fiscal year

operating profit of 15 billion yen or more, and an ROE of

Term Business Plan 2023, we have organized the material

to the management team. Governance is the foundation

ending March 31, 2023, we plan to increase the annual

10% or more by FY2031). We then determined our policy

issues of our group into six themes:of all corporate activities. We will continue to improve thedividend by 5 yen to 18 yen per share.

effectiveness of our Board of Directors and continuallyfrom that goal. Our basic strategy is value enhancement

strengthen our governance structure.

of new technologies and new markets that create thefuture (expanding), and behavior change, organizational
capacity change, and digital transformation to build a strong
management foundation (embracing change).
We have decided not to set a numerical target for the
final year, but instead to aim for an operating profit of 7
billion yen and an ROE of 7% or higher (both figures revised(2) Contribute to technological innovation by leveraging
core technologies(3) Contribute to social development by providing
products society needs(4) Provide healthy, safe, and secure environments forpeople(5) Contribute to a society in which diverse people canthrive and be rewarded for their work(6) Improve continuously compliance and governanceupward in May 2022), as average figures for the three years

dividend payout ratio is low. However, we believe that theWithout risk, there is no growth;
The key is to always keep challenging
ourselves

best way to respond to the support of our shareholders is

Although the first half of 2022 marks the halfway point of

average dividend payout ratio over the medium to long term

Medium-Term Business Plan 2023, there are still manyand on our investment in growth to maximize shareholder

challenges ahead. Although the C-Lube linear way andvalue.

to continue to pay stable dividends, as we have done evenin years when the external environment deteriorated andearnings were low. We hope that you will focus on both ourother mainstream products contribute significantly to theWe have entered the second half of our plan ofGroup’s earnings, we are unable to fully meet customer

implementing initiatives for the fiscal year ending Marchdemand due to constraints on supply. In addition, there

31, 2023. We will continue to be a corporate groupare many existing product groups that can be expected tothat is trusted by all stakeholders, including customers,

contribute even more to profits by adding new value. From

shareholders, investors, business partners, employees,

in the bearing industry, where our core business is based,

When tackling these material issues, we believe thata medium- to long-term perspective, it will be necessary

and competitors. So, the Group will invest management

becoming fixated on business performance in a single fiscal

there are three issues in particular that we should focus

to make capital investments, develop new products, andresources in the solid progress of the medium-term businessyear is not an ideal strategy. Considering the importance ofon: the further improvement of quality; the development

renew existing products quickly and effectively. I have beenplan, with a view to achieving the long-term vision that we

continuing to grow from a medium- to long-term perspective

and better use of human resources; and strengthening our

telling the employees of the Group the importance of taking

aim for. At the same time, we will work to maximize ourwhile securing stable earnings, we have set the three-year

corporate governance.

on challenges. The same can be said for management;

corporate value. We would like to ask all of our stakeholders

we also need to take on challenges. I intend to promote

for their continuous understanding and support.

average values for operating profit and ROE as KPIs (keyperformance indicators).

Looking first at quality, we consistently pursue highquality in all areas, from development, production, anddecisive management by taking appropriate risks where wesales to after-sales service, not to mention maintaining andare rewarded accordingly, while mitigating excessive risks

encourage all Group employees around the world toenhancing high product quality and providing that to ourthrough governance.

reconsider the meaning and value of the IKO brand andcustomers. Quality, in the broadest sense, can also include

make it a guide for their daily activities. By taking on new

the dedication of our employees to their work and theirshifting, especially with the repeated spread of COVID-19

challenges to further improve the value of the IKO brand, wegenuine customer service. Going forward, we will continue

and heightened geopolitical risks associated with Russia’s

believe that the Group will be able to move forward to theto further refine our superior quality, the foundation of ourinvasion into Ukraine. In addition, as I have alreadynext stage of growth.

reliability and our customers’ trust.

mentioned, the demand for our products is volatile, andIn Medium-Term Business Plan 2023, we strongly

For human resources, we believe that employees

The global economic and social situation is constantly

it is necessary to secure an appropriate level of financial

The Group’s material issues

working hard at their jobs is the greatest driving force behindreserves to prepare for negative changes in the external

The Group has introduced a range of new technologies

the Group’s sustainable growth. We will continue to focus

environment and for market fluctuations in the short toand products to society, in this way contributing to theon developing employees who will be responsible for the

medium term. Going forward, I will continue to steer thedevelopment of industry and the enrichment of people’s lives

future of the Group. At the same time, we will revitalize ourCompany in a flexible way, while keeping an eye on both thearound the world. For example, our roller-type linear motion

organization through initiatives, such as ensuring diversity

offensive and defensive aspects of investment in growth androlling guides—we were the first company in the world

when hiring, supporting the full participation of female

financial soundness.

to successfully commercialize them—have contributed

employees, and by creating an environment and culture thatenormously to the development of high-precision, compact

encourages boldly taking on challenges.

semiconductor manufacturing equipment and machine

Nippon Thompson Co., Ltd. Integrated Report 2022

Data

under review. As supply and demand fluctuates markedly

ESG Management Environmentthat strengthen the present (deepening), the development

prosperous global environment

ESG Management Society

create value by further deepening existing businesses(1) Implement corporate activities to realize a

If you look only at the past few years when we haveachieved good results, you may be inclined to think that our

ESG Management Governanceand embracing change. We will accelerate our efforts to

ESG Management

tools. In addition, a C-Lube linear way, which uses built-

and value co-creation through deepening, expanding,

9

Maximize our corporate value by
leveraging the collective strength of theGroupinitiatives for realizing our vision. We are proud of the fact

for the three years through March 2024 by backcasting

Nippon Thompson’s Value Creation

Message from the CEO

Nippon Thompson’s Value Creation

For corporate governance, we have been continually

Nippon Thompson Co., Ltd. Integrated Report 2022

10

Nippon Thompson’s Value Creation
Nippon Thompson’s Value Creation

Value Creation Process
Based on the unique strengths we have cultivated over the years, Nippon Thompson will contribute to the development of society throughout the entire value chain.

Outputs

Outcomes

ImpactCustomers

Contributing tosocial development
through technologicalinnovation

Financial Capital

Planning• Patent rights: 186 domestic and 184
overseas• Processing technologies accumulated
over many years (heat treatment
technology, grinding technology, quality
control)• R&D centers that promote innovation:
Technical Center/Product Development
Center• Process design and management
knowhow that enables optimal
production

MarketingO

Maintenance
Service

Human Capital• 2,688 global employees with diverse
skills and experience• 1,421 employees with national
certifications, etc.
• 103 R&D personnel

Value Ch

ProblemSolving
for Our
CustomersainIntellectual Capital

IK• Global production and logistics centersthat enable production in optimal
locations(Gifu/Kamakura, Vietnam, and China)• Capital expenditures: 2,019 million yen(FY2022)

Research &Development

On

Natural Capital• Energy (fuel and electricity) and wateruse• Mineral resources

equipment

Business Partners• Establishing win-win relationships• Building a sustainable supply chain

Design &Prototyping

Shareholders andInvestors
Medical equipment• Higher corporate value and returns• Timely, effective information disclosure• Improved quantity and quality ofcommunication

Purchasing
Industrial robots• Providing opportunities for selffulfillment and exercise of abilities• Providing a comfortable working
environment for diverse employees• Improving job satisfaction throughevaluation of individual contributions
and achievements

nnovation

nowhow
Accumulation and utilization oftechnology and information

Realizing a society
where everyone canplay a meaningful role

Community

Mechatronics series• Employment creation• Improving the social infrastructure
as well as safety and performancethrough products

Global Environment

Motorcycles

Innovative thoughts and actions

Helping to build asafer, more securesociety

Employees

Production& Logistics

Sales

Semiconductor manufacturing

Linear motion rolling guides

e Te a m

Social and Relational Capital• Trust and results cultivated by the IKO/
UBC brands• Collaborative relationships withcustomers and business partners• Favorable relationship of trust with local
communities

Needles roller bearings

ESG Management Society

Manufacturing Capital• Resolving technical issues• Improving the value of customer
products• Reducing the environmental impact ofcustomers• Lowering CO2 emissions• Helping to build an energy-savingsociety• Realizing a recycling-oriented society(recycling and waste reduction)

riginality
Product development withingenious creativity

ESG Management Governance• Total equity: 63,829 million yen• Interest-bearing liabilities: 22,583 millionyen• Growth investment: 1,324 million yen(R&D investment in FY2022)

ESG Management Environment

Business Model

InputsESG Management

Management Philosophy: A Company Centered on Technology Development That Contributes to Society

Helping to create aprosperous global
environment

Aerospace

Circulation through capital accumulation and reinvestment

External Environment
11

Nippon Thompson Co., Ltd. Integrated Report 2022

Data

Investmentof new
management
resources

Materiality (Material Issues)

6 themes and 16 issues to be addressedp. 16

Realizing a decarbonized society, maturation of developed countries, and the rise of emerging countries
Declining working population, human rights issues, and technological innovation leading to more diverse and sophisticated requirements
Nippon Thompson Co., Ltd. Integrated Report 2022

12

Nippon Thompson’s Value Creation
Nippon Thompson’s Value Creation

Source of Value Creation
The value creation of our Group begins with every employee being on “the same page” as our customers.
We achieve sustainable value creation by connecting the “value function” of the entire Group, including partner companies, quickly and effectively.

We have strengths in practical R&D and product design, flexible
prototype support, and process design that we use to meet our

and work to create ideas for technologies and services that will

customers’ unique and specific needs with optimal functionality

provide future value for our customers.

and cost.

Strengths/differentiating factors• Solving technical issues by integrating sales, sales engineering, andMarketing営業development

Ability nd
rsta
e
d
n
to U
alue CIKOStrengths/differentiating factors

Design・&設計
Prototyping
試作• R&D, product design, and precision processing technologies thatcreate high-quality/high-precision products that accurately meetcustomer requirements• Production technology that can flexibly provide value-addedin• Providing optimal products and services through customizationVAb
to R ility
eal
ha
ize

solutions for niche needs for special products and small-lot

Problem Solving
for Our Customers
Improving Value
By using detailed feedback on product issues through after-sales
follow-up with customers, we improve the value of our products
and link this activity to the further development of new products
and services.

Maintenance
保守 toService
サービス

Strengths/differentiating factors• Detailed support through a well-developed network of direct sales•

offices and cooperation with specialized trading companies

On
m
Ab
a
e
e
T
i
Im lity
ity
l
pro
i
b
A
ve
ver
i
l
e
to D

problem solving

production

Delivering Value
We work with our partners to produce high-quality, highly reliable

Purchasing
調達

products and to build a global supply system that flexibly responds
to fluctuating demand.

Strengths/differentiating factors• Quality control system throughout our supply chain• Needles: Flexible production system and extensive inventory lineup• Linear/Mechatronics: Customization based on needs and quick

Production
生産・&物流
Logistics

Sales
販売

Prompt and sincere response to customer requirements for

ESG Management Environment

customers, while also grasping market and technological trends,

ESG Management Society

Planning
企画

We accurately understand the problems and requirements of ourRealizing Value

Research
研究&
Development
開発

ESG Management Governance

Understanding Value

ESG Management

The “four abilities” of the value chain that collaborate around problem solving for our customers

delivery

Organizational Culture and Code of Conduct Supporting Value Functions

Data

The belief in the IKO brand is the driving force for growthnnovation
Revolutionary thoughts and actions

13

Nippon Thompson Co., Ltd. Integrated Report 2022

now how
Accumulation and use oftechnology and information

riginality
Product development with ingenious creativity

Nippon Thompson Co., Ltd. Integrated Report 2022

14

Nippon Thompson’s Value Creation

Identified Material Issues

The Group promotes sustainable management in orderdevelop initiatives in line with our basic sustainability

For the identified material issues, we organized them into

resolve these issues (for details, p. 29, Promotion of

to achieve both our own sustainable growth and social

policy (see p. 29 for details), based on our management

16 issues to be addressed from the investors’ point of

Sustainable Management). We will continue to review oursustainability through our corporate activities. Whenphilosophy of being a technology development-oriented

view, taking into consideration the opinions of externalmaterial issues in light of changes in social conditions andpromoting sustainable management, we identify material

company that contributes to society.

consultants. We are also promoting specific initiatives tothe business environment.

A Company Centered on Technology
Development that Contributes to Society

Basic Sustainability Policy
Material Issues

6 themes and 16 issues to be addressed

IKO VISION 2030
Medium-Term Business Plan 2023

Through initiatives based on addressing materiality, thesociety (creating positive impact), while accumulating andGroup aims to maximize the value provided to society

strengthening our management base (capital), in this way

through business and to help to realize a sustainableachieving the sustainable growth of our Group value.

importance to the Group
Organize the identified issues of high importance into six material themes by grouping them based on their

Step 3

relationship to the vision of the Company’s management philosophy

Step 4

Discussion and approval by the Board of Directors of the identified material issues and processes

Importance to SocietyManagement Philosophy

Group’s
6 MaterialIssuesImportance to the Group

Nippon Thompson Co., Ltd. Integrated Report 2022

Our Group Financial andNonfinancial Capital

Identify highly important issues by mapping the issues listed on the two axes: importance to society andImpact Created (Value Provided)

Activities in progress

Direction of Initiatives

Community contribution
activities

Promoting businessactivities in cooperation
with local communities

Revitalizing local
communities

Providing high-value-added
products throughcollaboration with partnercompanies

Cultivating new
applications of using
bearings and otherproducts

Promoting new technologies
that lead to a safe and secure
life, such as medical andtransportation equipment

Proposing solutions forcustomers’ issues

Helping customers to
overcome technicalchallenges

Improved durability, safety,
etc. of products

Establishing a human rights
policy and promoting CSR
procurement

Collaborating with
suppliers to reduce humanrights risks

Tackling human rights
issues in the global
supply chain

ESG Management GovernanceInitiatives to Be Promoted Based on Materiality

Data(Reference) SDGs, ESG key issues of global peer companies, and opinions of internal and external stakeholders

Provide healthy, safe, andsecure environments for people

List the issues that are relevant to the Group from among the various social problems

Step 2

Achieving
the SDGs● Value creation and capital circulation for the material issue: “Provide healthy, safe, and secure environments for people”

Materiality Identification Process

15(1) Implement corporate activities for realizing aprosperous global environment(2) Contribute to technological innovation byleveraging core technologies(3) Contribute to social development by providing
products society needs(4) Provide healthy, safe, and secure environmentsfor people(5) Contribute to a society where diverse people
can thrive and be rewarded for their work
(6) Continuously improve compliance andgovernance

ESG Management

Group Material Issues

p. 29

ESG Management Environment

Management
Philosophy

Step 1

Promotion of Sustainable Managementp. 29

1 6 Issu es to B e A d d res s ed(key) issues arising for various social problems, and we

Promotion of Sustainable Management

ESG Management Society

Positioning of Materiality (Key Issues)

Nippon Thompson’s Value Creation

Materiality (Key Issues)

Circulation to the Company’s own management base (capital)
Enhancing local human resources and relationship infrastructure / Improving the value of the brand
Expanding product demand and sales / Enhancing niche strategies
Strengthening purchasing capabilities / Mitigating business risks

Nippon Thompson Co., Ltd. Integrated Report 2022

16

Nippon Thompson’s Value Creation

History of Growth Strategies:

7.0

4.0

utilized our consolidated subsidiaries IKO Thompson Vietnam

achieve our initial financial targets as a result of the worsening

3.0

and UBC (China), which are strategic platforms that we have

trade friction between the US and China as well as the

been strengthening, as well as the integrated core ERP system

COVID-19 pandemic, which required a temporary adjustmentthat we deployed. To help resolve key cross-departmental

to production. However, demand now continues to grow,1.0

especially for semiconductor-related products, and opportunities

interdepartmental and inter-organizational collaboration,for our Group’s growth are becoming even bigger, such as

including the formation of cross-functional teams.

opportunities from next-generation communication standards

Basic Policy

MBP 2014

MBP 2017
2015

2016

2017

MBP 2020
2018

2019

2020

Medium-Term Business Plan

1st (April 2012 to March 2015)

2nd (April 2015 to March 2018)
Change & Challenge

3rd (April 2018 to March 2021)
Change ＆ Challenge—Next StageACCOMPLISH

4th (April 2021 to March 2024)
Deepening, Expanding,
Embracing Change

Establishing a “Highly
Profitable Organization”“Value Enhancement,
Value Co-Creation”

2020(Billions of yen)
Net sales

2013

2014

2015

35.9

39.2

44.9

(three-year
average)

43.6

44.1

55.2

1.1

–0.2

3.8

5.1%
2.0%

collaboration

3.0

1.1

2019

2020

2021

47.4

44.3

Challenges• Ability to respond to the external environment(market conditions / foreign currency volatility)• Defensive management focused onstrengthening financial position

–0.5%

2.6

2.9%
1.7%

Final year
target

62.2
70.0

4.8

1.3

–0.5

5.8
8.0

1.9
7% or
above

Outcomes• Capacity expansion of overseas production
center (Vietnam)• Execution of M&A (acquisition of UBC in
China)• Deployment of integrated core ERP system(SAP)

Challenges• Profitability management (priorities/asset
efficiency)• Ability to implement tactical measures(interdepartmental collaboration)

6.2%

–0.3%

0.4%
2.1%

8% or
above

Outcomes• Profitability improvement throughthe use of an integrated core ERP
system (SAP)• Transforming HR management
system• Strengthening their capabilities ofdomestic/overseas production sites• Strengthening interdepartmental
collaboration through crossfunctional teams
Challenges• Securing stable profits (resilience tomarket fluctuations)• Sustainable growth from a long-term
perspective (preemptive investment
toward social change)• Awareness and behavior
transformation at the individual layer

2022

2023

2024

FY

IKO VISION
2030

Collaborating withcustomers primarily
and co-creating value
as a technology
development based
company– co-creating a sustainable future –

2022

49.8

7.0

2.6%

• Embracing Change: Behavioral change, organizationalchange, and digital transformation

2.3
Not
available• Expanding: Develop new technologies and new

segments• Focus/efficiency x global expansion

60.0

1.6
1.0%

depth

• Overall optimization / CFT for interdepartmental

57.5

6.0

–0.2%

• Heightening profit awareness47.7

Outcomes• Sharing and grasping approaches on our
direction and long-term vision• Strengthening the Company’s structure byresolving financial issues

Nippon Thompson Co., Ltd. Integrated Report 2022

2018

40.1

(three-year
average)
ROE

2017

Final year
target60.0(three-year
average)
Operatingprofit2016

2023• Deepening: Explore existing businesses in greater

opportunities(improve utilization rates of production facilities / advanced
pricing strategy)• Strengthening organizational capabilities and IT system
sophistication
Final year
targetMBP 2023
2021(1) Establishing a global business structure(2) Developing new products using core technologies(3) Strengthening collaboration with partner companies• Maximizing the scope and the scale of business(manufacturing/sales centers, global procurement)

Achievements
and Challenges

2014

Medium-Term Business Plan

• Strengthening our financial position

Financial Targets

0.0
–1.0

Medium-Term Business Plan

• Reinforcing the global business structure

1.0

–1.0

2013

Shift to “Offensive Management”

2.0

or above

Medium-Term Business Plan

Formulating our vision, direction andlong-term vision for the Company

3.00(5G) and increased demand for automated industrial machinery.

2017

4.0

7.0 billion yen
or above ROE of 7%

2.0

issues, we have made significant progress by strengthening

5.0

operating profit of

ESG Management

year of the plan with record-high net sales, we were unable toThree-year average

ESG Management Environmenton this as a way to reap results. For reaching this goal, we

6.0

5.0

ESG Management Society

Medium-Term Business Plan 2020. Although we started the first

6.7%

Set three-year average target
to build a corporate structurethat is more resilient to market
fluctuations.

Operating 7 billion yen
profit:or above
ROE of 7% or above

Net sales
100 billion yen or above

ESG Management GovernanceGroup fluctuated enormously during the three-year period of the“Three Challenges of Growth Strategies”
to Achieve Our Long-Term Vision

17

6.0

heightening profit awareness as a key phrase, and worked

2014

(%)
8.0

In our Medium-Term Business Plan 2020, we had positioned

Positioning and
ThemesROE

7.0

Operating profit
15 billion yen or above
ROE
10% or above

Medium-Term Business Plan 2023 emphasizes steadily resolving imminentissues, even amid major social change, while at the same time firmly proceeding

Data

Past to Present Medium-Term Business Plans

At the same time, the business environment surrounding the

Operating profit

Nippon Thompson’s Value Creation•Operating profit / ROE(Billions of yen)with our long-term direction and ensuring that forward-looking tactical measures
are also being implemented.
Constantly taking the customer’s point of view, we will create high-addedvalue throughout the IKO Group’s value chain, including partner companies, toachieve sustainable growth and realize our long-term vision, IKO VISION 2030.

Nippon Thompson Co., Ltd. Integrated Report 202218

To ensure our growth from a long-term perspective, we

Expanding is an initiative to realize sustainable growth by

are developing tactical measures based on the three basic

continuing to explore and tackle new technologies and new

policies: deepening, expanding, and embracing change.

business segments in response to society change.

Deepening is an initiative to further explore existing
businesses that have been cultivated as our Groupmanagement base through awareness/behavioral change

The three-year Medium-Term Business Plan 2023 (fiscal

promoted in advance during these three years throughstrengths, to strengthen our resilience to market fluctuations

at the individual level, organizational capability change,

year ended March 2022 to fiscal year ending March 2024),

backcasting from IKO VISION 2030.

and to secure stable profits.

and digital change in order to implement deepening andTo maintain a medium- to long-term perspective andsteadily reform, under a rapidly changing and volatile

value enhancement and value co-creation.

business environment, we have set our financial targets as

This plan ensures that any outstanding issues are

three-year averages.

completely resolved and summarizes what should beCreate the Future

A Solid Step Up to Sustainable Growth!

Strengthen
the Present status

Medium-TermBusiness Plan 2023:
Value Enhancement &Value Co-Creation

Resolve remaining issues
completely

Medium-Term Business Plan 2020:

Establishment of a Highly Profitable
Organization

2018/4–2021/3 (threeyear average actual)2021/4–2024/3 (threeyear average target)

Operatingprofit

2.2 billion yen

1.8 billion yen

7 billion yen or above

ROE

1.7%

2.1%

7% or more

Driving Force of GrowthThree Basic Policies

Reliability Technology:
Niche Leader(1) Deepening

Variable Response Capability:
Multi-Product Production

IKO VISION 2030

Business Domain: New
Technology Development

Co-creating value as aMarket Domain:
Global Expansion

technology development• Differentiation and enhanced added value through product development

based on both “product out” and “market in” approaches• Strengthen responsiveness of supply chain delivery by shortening lead times

Create the Future–Expanding into New
Technologies and New Segments(2) Expanding• Search for strategic technology alliance partners for joint development, OEM, etc.
• Initiatives to develop new products and businesses (use of accumulated data

and knowhow)• Strengthening competitiveness by reformulating the global supply structure

sustainable future

Profit Structure Changes

Net sales:
100 billion yen or above

Ability to Organize Human
Resources

Operating profit:
15 billion yen or above

Strengthen the Present–Digging Deeper into
Existing Businesses

and improving productivity

based company – co-creating a

ROE: 10% or above

2015/4–2018/3 (threeyear average actual)• Three basic policies and initiatives in the Medium-Term Business Plan for achieving sustainable growth

Steadily achieve what
we need to do now for
the future

Medium-Term Business Plan 2017:
Shift to Offensive Management

expanding.

Management Base–Behavioral Change,(3) Embracing Change Robust
Organizational Capability Change, Digital Change• Initiatives to improve the break-even point (per capita productivity and asset

efficiency)• Develop change leaders to promote DX strategic themes• Promote sustainable management• Well-balanced management that captures social changes and continues to create future value
Strengthen the Present–Exploring Existing(1) Deepening: Businesses More Deeply

Strengthen Resilience to Market Fluctuations“Maximize Earning Capabilities”
Secure Resources for Growth with Value Focus
Generate Operating CF (Growth Capital)

Segments
Where CoreTechnologies
Are Used

Create the Future–Expanding into New(2) Expanding: Technologies and New Segments

Earn andReinvest in Core
Business

Preemptive Investment for Social Change“Creating New Value”
Preparing in Advance for Future Growth
Risk-taking (Growth Investment)(3) Embracing Change: Robust Management Infrastructure–Behavioral Change, Organizational Capability Change, Digital Change

Collaborating with customers primarily andco-creating value as a technology development based company

Embracing change to management for enabling both deepening and expanding

These words express our Group vision for the year employees will always think and act from the customer’s perspective to

While the two strategies of deepening and expanding are interconnected, there are many differences in the work processes

establish their trust in us to be consulted first, collaborate directly with customers and partner companies through ways thatand the criteria for value judgment between initiatives to deepen existing operations and initiatives to expand into newinclude the active use of digital technologies, provide faster and more accurate solutions, as well as create new value.

operations. For this reason, it is not easy to implement both of these two strategies.

IKO VISION 2030 was established to ensure sustainable growth by aiming for the common long-term goals for the entire
IKO Group, while facing major changes in the business environment.

ESG Management Environmentchange in society and to ensure growth under the theme

ESG Management Society

currently underway, is a plan to tackle the challenges of

ESG Management

Embracing change is an initiative to strengthen our

ESG Management GovernancePositioning of Medium-Term Business Plan 2023

Three Basic Policies and Specific Strategies

Data

Medium-Term Business Plan 2023

Nippon Thompson’s Value Creation

Nippon Thompson’s Value Creation

To accomplish our goals, we are conducting initiatives that emphasize “embracing change” in our organizational
capabilities, by “establishing methods and rules” that allow for decisions based on different criteria, and by promoting
specific measures to “create a system for awareness/behavioral reforms.”

19

Nippon Thompson Co., Ltd. Integrated Report 2022

Nippon Thompson Co., Ltd. Integrated Report 2022

20

Business Overview

Nippon Thompson’s Value Creation

Nippon Thompson’s Value Creation
Demand Overview by Industry•Trend in Consolidated Net Sales

The Group has a rich lineup of products in stock through multiproduct production. This
enables us to supply products in small lots and with short delivery schedules, in response tocustomer demand for high-quality, high-precision products. We have created a high valueSales
Customized Composition Standard
products
products
Ratio in
FY2022

added business model by responding quickly and flexibly to requests that require special
form factors (shapes and sizes).
As a testament to this strength, about half of our net sales come from customized
products made to custom order requirements and equipment specifications. Even after
delivery, all departments work together to provide attentive after-sales service, including our

The market surrounding electronics-related industries continues to grow, not only
for devices such as PCs and smartphones, but also for the recent progress of
IoT in home appliances and self-driving vehicles. Demand for semiconductors
indispensable for these devices is expected to grow even more in the future as they
become increasingly miniaturized, highly integrated, and more power efficient, andgrowth in this industry is expected to lead to increased earnings for the Group.
Major Applications• Semiconductor manufacturing equipment• FPD manufacturing equipment• Electronic component mounting machines• Electronic component inspection equipment(Billions of yen)
15.0

10.0

12.6
9.3

10.4
7.7

8.5

5.0

0

2018

2019

2020

2021

2022

ESG Management

Electronics

FY

hands-on response to customer inquiries.

Machine Tools

More expansion is expected over the medium to long term

including automobiles, motorcycles, joints in robotic arms,

as our industry continues to face fluctuations in demandand for general machinery, such as printers and textile

and capital investment. This expansion is expected inmachines. Overseas sales account for about 60% of ourelectronics-related industries especially, including the shift to

Major Applications

total sales, and we are aggressively expanding into theelectronics in the machinery industry for the development ofAsia region, which has enormous potential demand, by

next-generation technologies, IoT, AI, and smart factories,

producing IKO brand products at our production subsidiary

as well as automation and advanced production lines,

in China. We have built a stable revenue base in the global

particularly in emerging countries.
The Mechatronics series is the integration of machining

respond to small-lot jobs, which is difficult for some large

technology and electronics, making posible customized

companies to execute.

solutions to meet customer equipment specifications. In

Worldwide demand is growing for linear motion rolling

addition to production at a dedicated factory equipped

guides as machine components that contribute to thewith a large clean room, which was launched in 2017,sophistication and power savings of semiconductor

we are also collaborating with overseas companies. The

manufacturing equipment, machine tools, and other

Mechatronics series is widely used in high-precision

machinery industries.

positioning mechanisms for measuring, processing, and

The Group has an industry-leading lineup of products

assembly machines, as well as in state-of-the-art LCD/flatin various sizes that has penetrated into a wide range ofpanel display manufacturing equipment and semiconductor

industries, from large machine tools to machinery andmanufacturing equipment.

equipment that require compactness and space saving.

Machine Components
Sales of machine components account for approximately

other companies and those made into system products

10% of total net sales, including products purchased from

into which our partners have embedded our products.

•Trend of Consolidated Net Sales by Product Segment•Net Sales by Industry(Billions of yen)
Bearings, etc.
70.0
60.0

55.2

62.2

57.5
47.4

50.0

44.3

40.0
30.0

47.9

50.8

20.0
10.0
0

21

42.2

FY2022Composition
Ratio

55.9

Domestic/
overseas
distributors
50%

39.5

7.2

6.7

5.2

4.7

6.3

2018

2019

2020

2021

2022

Nippon Thompson Co., Ltd. Integrated Report 2022

FY

• Grinding machines• Electrical discharge machines

4.4
3.0

3.0

2.9
1.8

2.0
1.0
0

• Lathes

4.0

2018

2019

2020

2021

2022

FY

Transportation Equipment
Many characteristics are required for transportation equipment, including drivability
and economy, comfort, safety, and quietness, and our efforts continue to create
unique technologies and innovative products. High precision and quality are required
to maintain smooth and stable drive. Further, stable demand can be expected in
the future due to the shift to EVs in automobiles in preparation for a carbon-neutral
society and the deployment of platform doors at railway stations.
Major Applications• Automobiles• Motorcycles• Railway cars

• Aircraft• Platform doors

Other Machinery

Many machines are used on production lines, and in addition to basic capabilities
such as high load capacity and high rigidity, it is important to have the required
technical capabilities and reliability for responding to new initiatives andsystemization. Medical devices used to diagnose, treat, and prevent diseases havealso made significant technological advances in recent years, and their markets are
growing worldwide. As the performance requirements are extremely precise, andspecial characteristics such as high speed, accuracy, rigidity as well as low vibration,and easy maintenance are required, demand for high quality, high-value-added
products is expected to increase.

(Billions of yen)
2.9
3.0
2.5

2.2
1.9

2.0

2.1

1.0

0

2018

2019

2020

2021

2022

FY

(Billions of yen)
15.0

12.9

13.3

13.4
11.6

10.0

10.3

5.0

0

2018

2019

2020

2021

2022

FY

Major Applications
Electronics
20%

Machine components• Multi-axis machining centers

4.0

Machine tools
5%
Transportationequipment
3%
Other machinery
22%• Industrial robots• Printing machines• Construction machines• Textile machines• Measuring instruments• Medical equipment

Domestic/Overseas Distributors(Billions of yen)This category includes the aftermarket segment, with products for domestic andoverseas distributors as well as for repairing and maintenance. Japanese motorcycle
manufacturers and machine tool manufacturers are now shifting to overseas
production, and deliveries to overseas production sites are also included in thiscategory. Consequently, this industry accounts for approximately 50% of our sales,
and continues to grow steadily.

30.0

25.9

Data

market using a business model that allows us to flexibly• Machining centers

5.0

ESG Management Society

Bearings, etc.

(Billions of yen)

ESG Management Environment

Needle roller bearings are used in a wide range of fields,

Machine tools that process components from metals and other materials with highprecision and efficiency. Demand for our products is expected to increase going
forward. The latest machining centers, which are capable of precise and complex
machining, and other technological advances in machine tools have traditionallyrequired high-speed, high-rigidity, high-precision linear motion rolling guides andneedle roller bearings.

ESG Management Governance

Overview by Product Category

31.1

26.7

25.0

22.7
21.6
20.0
0

2018

2019

2020

2021

2022

FY

Nippon Thompson Co., Ltd. Integrated Report 2022

22

Business Strategy

Nippon Thompson’s Value Creation

Nippon Thompson’s Value Creation
Sales Department

Our Group’s business is growing worldwide through the supply of machine components that are indispensable to all industries,
from electronics-related industries to machine tools and transportation equipment. The core of our value creation is that we

The source of our value creation is our ability to address ourcustomers’ needs and then propose solutions that focus on
those needs. We want to expand our global niche strengths
into new areas.

provide high-quality products that quickly meet the challenges and demands of our customers.
The IKO brand is highly credible and trusted due to the accumulation of value creation through our sincere activity to solve
customers’ problems in collaboration with external partners, as well as the business units responsible for the value chain.
At the same time, global society is undergoing a period of historic change, including a digital shift, the evolution of AI and IoT,

Toshinao Kimuraand social demand for sustainability, including the SDGs. We will address issues that could be potential risks, while continuing to

ESG Management

Managing Director
In Charge of Sales Department

take on the challenge of new growth opportunities where we could leverage the Group’s strengths to achieve sustainable value
creation.

• IKO brand, trusted for high quality and precision• A corporate culture that values integrity• Product technology strengths in both miniaturization and • Further efficiency improvements in the multi-productbusiness model
high precision/rigidity
A
sales
and
marketingnetwork
thatenablesustoprovide•• Establish a stable production and supply system that
anticipates demand trends
attentive servicesA
multiproductproduction
system
that
deals
with
•
customization and small-lot requirements• Rapid growth of electronics-related markets• Increasing needs for miniaturization, high precision, and••high functionality due to more miniaturized semiconductors,
development of the medical industry, etc.
Large growth potential in global markets, especially inemerging economies
Increased demand expected for high-efficiency bearings fora decarbonized society• Rise of competitors in emerging countries and intensifying
cost competition• Negative impact of geopolitical risks on supply chain

Opportunities

Threats

Direction of Company-wide Strategies
Under Medium-Term Business Plan 2023, in addition to further deepening the strengths developed by each business segment,
we will continue with the balanced implementation of expanding and embracing change to respond to medium- and long-termsocial changes, with the aim of realizing our vision, IKO VISION 2030.
Environmental AwarenessMedium-Term Business Plan 2023

Realization of Our Vision

Technology
Development

IKO VISION 2030

Internal Challenges andRoom for Growth

S W
O

Deepening Expanding
Sales

T

Production

Embracing Change

Collaborating withcustomers first and CoCreating Value as a
“Technology Development
Based Company”–Co-Creating a Sustainable Future–

External Environment ChangeManagement

ESG Management Environment

Weaknesses

Policy and Future Initiatives
Under Medium-Term Business Plan 2023, the IKO Group is launching sales initiatives that make the most of the management
resources being developed as our assets, including the strength of our product lines, supply capabilities, and human resource
skills. First, we are introducing strategic products that aim to become global niche leader products by accurately grasping theneeds of each country, industry, and customer, as well as by concentrating resources into prioritized regions and strengthening
our business structure. At the same time, to create resources for global expansion, we are also working on human resource
development, strengthening cooperation with each business partner, and improving services and marketing strengths through DX(digital transformation).
The Sales Department will use and develop IKO’s unique legacy and strengths, which have been inherited and refined, to theirfull extent, in order to secure profits for investing in growth. Further, the Company will take on the challenges of developing newtechnologies and entering into new markets, and in this way we realize the sustainable creation of value.
Substantial room for growth in emerging countries and other global markets
Global deployment of the niche leader concept to achieve sustainable growth•

Net Sales Composition (by Region)

IKO VISION 2030

ESG Management Governance

Strengths

Japan
Overseas

FY2022

Data

SWOT Analysis

Features and Strengths
The IKO Group has 50 domestic and overseas sales offices(22 in Japan and 28 overseas), and we are implementing
customer-oriented sales proposals by expanding direct
sales. We are also strengthening partnerships with highly
specialized trading companies dedicated to specificcustomers and industries, and creating a structure thatenables us to provide more extensive and attentive
support.
With our legacy as a bearing trading company
founded in 1950, the DNA of our Company has been
firmly inherited by our current Sales Department. With astrong belief in proposal-based sales activities, and thecustomer’s perspective, we have earned a high level oftrust by constantly seeking to add value for our customers,
not only by selling our own products, but also by providing
sales and services for complete sets of products andequipment in collaboration with our alliance partners.

ESG Management Society

Environmental Awareness and Issues
The Needle series is the legacy of the IKO brand, and thedriving force behind our group growth as a profit generating
sources since the Company’s establishment. The Linear
series and Mechatronics series are expected to growsignificantly in the future as we address technologicalinnovations, such as state-of-the-art semiconductor
manufacturing equipment and advanced medical equipment.
Our broad, well-balanced product lineup, geared towardsustainable growth, is the result of our Sales Department’s
attentive management of customer feedback, which changes
over time, as well as our ability to develop products while
foreseeing market trends.
In recent years, the downsizing of machinery andequipment and the reduction of environmental loads havebeen increasingly emphasized, and our Group compact
and maintenance-free products have grown to become ourmainstream products. We believe it is essential to continue toidentify high value segments that only IKO can provide, while
keeping up with the latest market trends, and to develop
solution proposals that capture the essence of issues on a
global scale.

FY2013

38% 35.9

billion yen

49%

62.2

billion yen

100

51%

billion yen
or above

62%
60% or above

Balanced Management to Continue Creating Future Value
23

Nippon Thompson Co., Ltd. Integrated Report 2022

Nippon Thompson Co., Ltd. Integrated Report 2022

24

Production Department

Policy and Future Initiatives
In our Medium-Term Business Plan 2023, we have set
strengthening developers’ marketing perspectives as apriority. It is important for developers to visit customers
to deepen the dialogue in order to gain a deeper
understanding of the value that customers need. For thisreason, we are also reviewing our organizational structureand development process flow. We have begun to review
our on-the-job training and education programs to help
developers to transform their behavior and improve theirprofessionalism.
We will strive to differentiate ourselves by achieving abalance between improvement (market in) developmentthat accurately identifies needs and issues throughdialogue and proposal (product out) development that
identifies latent needs that customers are not yet aware of,with prototypes of technology-driven products.

Features and Strengths

Environmental Awareness and Issues
Traditionally, the bearing industry’s structure has centeredon mass production, mainly for the automotive industry.
However, this is changing with the recent shift to EVs.
Under these changes, we expect steady demand for the
Needle series in the areas we have been focusing on,
and upgrading the multi-product manufacturing system
we have established will be a challenge for strengthening
our competitiveness. In the linear motion rolling guideseries, the main challenge is to enhance supply capacity
to respond to significant market growth, particularlyin the semiconductor industry, as well as to provide“instantaneous power” to respond to the rapidly fluctuating
business cycle.
To establish a sustainable supply chain, it is necessary
to have production and purchasing that consider theenvironment and human rights. A healthy, safe, andrewarding work environment is another inevitablechallenge. We are committed to our mission of“contributing to the global community through local-based
manufacturing.”

World’s first liquid crystal
lubricant (LCL) linear way

New
ChangesIntelligence uses

Our greatest strength in manufacturing is inevitably quality,
and our thorough commitment to high quality has earned
us the trust of our customers. Our product line can bebroadly classified into the Needle roller bearing series
and the Linear motion rolling guide series, each with very
different characteristics for every business model. Given the
differences in markets and business cycles, it is necessary for
the Production Department to establish a system that meetsthese requirements.
The majority of the Needle roller bearing series is for the
MRO* market, and the Company responds to orders from allover the world for a wide range of products and lot sizes. On
the other hand, we offer the Linear motion rolling guide series
with individually customized product sizes and specifications,such as those for semiconductor manufacturing and medical
equipment.
The strengths of IKO that support the IKO brand are ourcommitment to high quality and our unique manufacturingknowhow, including equipment development, process
design, production and inventory planning, and collaboration
with suppliers, which enables us to optimally respond torequirements for a wide array of products and customization.
* maintenance, repair, and operations

Policy and Future Initiatives
Development of products and services that continue
to make a difference for the IKO brand, and the
direction of technological innovation

To establish a production system that can respond to customer needs flexibly and quickly, we have set strengthening Q, C, andD, including reducing lead times and strengthening production technology capabilities to achieve these goals as key themes of
our Medium-Term Business Plan 2023. More automation and the use of digital technology are also key to refining IKO’s uniqueproduction model and further improving productivity. In particular, the integrated core ERP system (SAP) introduced in 2016
has improved information sharing and collaboration throughout the value chain, which has been a major force in promoting thecurrent medium-term business plan.
In addition, as global warming gains strength around the world, environmentally friendly manufacturing is a top priority thatis increasingly demanded by society. We will not only continue to steadily save energy at our production sites, but we will also
actively promote environmentally friendly manufacturing that uses renewable energy sources, such as solar power.
Strengthening the production system throughout
the entire value chain

Simplifying

Compounding

Supply Chain
Curved linear
transfer system

DeepeningHigh accuracy

Visualization of Information

Eng
Prod
inee
u
ring
Prod ct Plan
Cha
n
uct
in
Des ing
ign
Pro
Dig
ital
c
Coll
Des ess
abo
ign
ratio
n

Integrated Core ERP System (SAP)INNOVATION
Compact andlightweight

ESG Management

In the Technology Development Department, we always
care about our customers’ feedback and place the highest
importance on our integrity for solving issues.
We were the first company in Japan to develop
needle roller bearings, and have expanded our businessdomain to include linear motion rolling guides and the
Mechatronics series since then.
Our high technological strengths that support thedevelopment of the IKO brand of high-quality, highprecision products are the result of the multiple years ofexperience and knowhow that we have accumulated byworking closely with the Production Department to fulfill
customers’ requirements and overcome challenges one byone.
While the main functions expected of bearing
mechanisms are extremely simple—lightweight, smooth,and long-lasting—customers recognize the uniquecharacteristics of the IKO brand, which leads us to where
we stand today. The Technology Development Department
is taking on the challenge of creating new de facto
standards that start with building relationships of trust withcustomers.

Managing Director
Deputy in Charge of
Production Department

ESG Management Environment

Features and Strengths

Tooru Okajima

Senior Managing Director
In Charge of Production
Department

Managing Director
In Charge of Technology

Environmental Awareness and Issues
As the digital shift accelerates throughout the world,next-generation technologies such as IoT, AI, and smart
factories are developing significantly, demand for our
products is expected to grow continuously. In particular,
the miniaturization of semiconductors and advancements
in medical equipment have increased the need for bearingsand components with superior specifications, such as “small
size, high functionality, and high accuracy,” and the needs foreach application are becoming far more subdivided, making
the technical issues more diverse and complex.
Our product policy for compactness and high accuracy,
which IKO’s technical developers have persistently pursued,
is in line with current industry trends and is increasing thevalue proposition of our products in the market. At the sametime, in the low-end market, price competition is becoming
the main factor, partly due to the rise of emerging countries’
companies. Going forward, we will continue to pursue highquality, transform our human resources, and transform
our organizational capabilities to take on the challenge ofdeveloping new products and services that will drive growth.

Nobuya Hideshima

ESG Management Society

Shin Kasahara

Pride in manufacturing excellence is thesource of our value creation. We aspire to
evolve IKO’s unique knowhow globally tocreate high-quality products.

Supply and
Demand Planning

Production
Planning

ESG Management Governance

The source of our value creation is the unique and advanced
technological strengths supporting the IKO brand. We hopeto grow together with society and our customers by creating“new value” by facing their challenges sincerely.

Procurement

Digital Collaboration

Long life

Design Parts Composition Chart
Manufacturing Parts Composition Chart

Data

Technology Development Department

Nippon Thompson’s Value Creation

Nippon Thompson’s Value Creation

Cost Structure
Equipment Operating Status

Manufacturing
Dig

ital

Reduced Purchasing/Production Lead Times

Coll

Logistics
Qua
Rec lity
ord
s

abo

ratio

n

Sales
Service
Digital Collaboration

Product/Equipment Maintenance

Advanced Inventory/In-Process Logistics/Warehouse Management
Process Efficiency Improvements and Optimization

25

Nippon Thompson Co., Ltd. Integrated Report 2022

Nippon Thompson Co., Ltd. Integrated Report 2022

26

Nippon Thompson’s Value Creation

Financial Strategy

The IKO Group has formulated the three-year Medium-TermBusiness Plan 2023: Deepening, Expanding, and Embracing
Change, starting in April 2021, and we have set financial
targets: operating profit of 4.5 billion yen or above and an
ROE of 5% or above on average over the three-year periodof the plan. Our goal is to achieve stable and solid corporate
value improvements even under an unstable businessenvironment.
In FY2022, the first year of our Medium-Term Business
Plan, the business environment remained uncertain, including
disruptions in logistics due to the repeated emergence of
COVID-19 variants, as well as soaring fuel and raw material
prices. However, there were some tailwinds in businessenvironment surrounding our group, such as rapid growthin demand for domestic and overseas capital expenditures,
driven by demand for semiconductor manufacturing
equipment and other electronics-related devices.
As a result, business performance exceeded our target,with consolidated net sales 62.2 billion yen in total, up 40.5%
year-on-year, a record high; operating profit amounting to
5.8 billion yen (operating margin of 9.5%), due in part to thesales increase and the production volume increase and theeffect of the yen’s depreciation; and an ROE of 6.7%.
The initiatives included in this medium-term businessplan are progressing well, and we have revised upward
our financial targets to an operating profit of 7 billion yen
or above and an ROE of 7% or above on average over thethree-year period. We revised our targets based on the
expectation of continued investment growth in our targetedmarkets during the planning period. We will improve capitalefficiency and ROE while accelerating our drive to further
study and implement growth strategies.

In line with our policy of strengthening the financial position,
the Group will work to boost profitability to achievesustainable growth, improve capital efficiency, and increase
shareholder returns.
Under an environment where customer requirements
are becoming increasingly sophisticated and diversified,our goal is to secure stable profits and achieve sustainablegrowth in the future by strengthening our response tomarket fluctuations and social change. To reach this goal,
we have formulated IKO VISION 2030, which is intended toachieve consolidated net sales of 100 billion yen or above,
an operating profit of 15 billion yen or above, and an ROEof 10% or above in FY2031. We will continue to challenge
ourselves and transform the IKO Group in both financial andnonfinancial areas, including balancing investment for growthwith financial discipline and promoting ESG (environmental,social and governance) management.
As a financial KPI, we have set the target for ROE at
10% or above, which exceeds the cost of shareholders’equity (8 to 9%), with the aim of strengthening profitability
and improving capital efficiency. In addition, we will strive forsustainable growth through profitability and better capitalefficiency, by maintaining a strong financial structure with atarget equity ratio of 60%.
For procuring funds, the Company will strive for stableand flexible financing, principally using operating cash flow
and liquidity on hand to fund investments for businessgrowth, while considering the option of sourcing funds from
capital markets, if the investment amount exceeds inhousefinancings. We aim to maintain a D/E ratio (interest-bearing
liabilities/net assets) of no more than 0.5 times, and will
expand and strengthen our business through active growthinvestments, while maintaining financial discipline.

approx. 60%
D/E Ratio

no morethan
0.5 times

Corporate ROE
10% or above
Value
Enhancement
Dividend Payout Ratio(stable over the longterm)

Shareholder
Sound
Financial
Returns
30% target
Base

Equity Ratio
(%)

70.0
60.0

60.1
0.36

0.47

58.4

58.7

D/E Ratio(times)

0.5
59.6
0.35

50.0

0.4

40.0

0.3

30.0

0.2

20.0

0.1

10.0

0.0

0.0
2018

Nippon Thompson Co., Ltd. Integrated Report 2022

59.1
0.36

0.47

2019

2020

2021

2022

FY

FY

CF from Operating Activities

CF from Investing Activities

Free CF

Operating CF:
8.3 billion yen

2013

2014

2015

2016

2017

2018

2019

2020

2021

Medium-TermBusiness Plan 2023 (Plan)

Investment
for Growth

Financing by
Debts, etc.:
22.5
billion yen

Investment
for Growth
OperatingCF

Financial
Strengthening

Financial
Strengthening
Shareholder
Returns

Shareholder
Returns

2022

ESG Management

Basic Financial Policy(Millions of yen)
10,000
8,000
6,000
4,000
2,000
0
-2,000-4,000-6,000-8,000-10,000

Medium-TermBusiness Plan 2020 (Actual)

ESG Management Environment

Environmental Awareness

Equity Ratio

27•Cash Flows (CF) from Operating Activities

Approach for Inventory Strategy and Capital Turnover Efficiency
Our group business model secures a reasonably high profit
margin by offering a wide variety of products available
through multi-product manufacturing and by enablinga flexible supply that includes the small-lot distributor
market, which is difficult for large companies to access.
As a result, the number of months of stock turnover isgenerally long.
In FY2022, inventories at the end of the period
increased to 33.5 billion yen, an increase of 2.0 billion
yen year over year, mainly due to more work in process,as orders remained at a high level in response to strong
demand and rapidly increased production. On theother hand, inventory turnover (based on net sales) was
equivalent to 6.3 months, a significant decrease from
8.8 months at the end of the previous year, partly due tohigher net sales. For future inventory levels, taking into
consideration the continuing high level of orders, we will
promote inventory optimization by holding down stocklevels, aiming for an inventory turnover equivalent to six
months, an appropriate level for us.

In addition, shortening the cash conversion cycle (CCC)
is essential to strengthen our ability to generate cash flow.
We will strive to improve asset efficiency through morethorough fund management, including through accountreceivables collections, keeping in mind the level ofinventories necessary to respond promptly to customer
needs.
Inventories

Inventory Turnover(Millions of yen)(Months)

35,000

11.6

ESG Management SocietyManaging Director

12.0
9.8

30,0007.7

25,000

7.7

8.0

7.4

20,000

5.6

8.8

9.0
6.3

5.8

6.0

15,00010,000ESG Management GovernanceKoji Shimomura

savings, as well as in energy conservation leading todecarbonization and a reduced environmental impact.
We also plan to invest in increased production capacity,
including the acquisition of new sites and the constructionof new plants, in order to invest in the growth of strategic
products that are among our group’s major strengths.
The primary source of capital reserve for theseinvestments will be operating cash flow and liquidity on
hand, as well as funds from other financing methods, if
necessary. In addition, we will continue to maintain soundfinancial positions in order to continue stable financing.

3.0

5,000
0.0

0
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

FY

Shareholder Returns Policy
The Company positions shareholder returns as one of themost important management issues. Our basic policy is tomaintain a stable dividend, while comprehensively taking
into consideration the business performance of each fiscal
year, the level of retained earnings necessary for futurebusiness development, and other management factors.
As the demand for our products is extremely volatileand our performance fluctuates widely, we aim to meetthe expectations of our shareholders by paying a stabledividend each fiscal year, and we set the medium- tolong-term dividend payout ratio targets 30% (cumulative
dividends for the most recent five years).
In addition, the Company will consider repurchasing
shares, as necessary, by comprehensively taking into
account the business environment, financial environment,

growth investments, stock price levels, and othermanagement factors.

Dividends per ShareDividend Payout Ratio(Cumulative overthe past 5 years)

2,525.8
1,297.3

(yen)
20.0

Data

Guided by the need for a sound financial
foundation, we aim to achieve capitalefficiency and strengthen shareholder returns
by improving profitability, in this way achieving
sustainable growth of corporate value.

Nippon Thompson’s Value Creation

Cash Allocations
To achieve the financial targets set out in IKO VISION
2030, we will allocate capital reserve to growthinvestments that create additional value from a medium- tolong-term perspective.
In addition to investments in human resource
development and R&D to help us to resolve social issues
and social needs, as well as growth investments in,for instance, DX, M&As, and alliances, we will prioritize
investments in sustainability, as well as stable andcontinual shareholder returns.
As for capital expenditures, we intend to invest inincreased production capacity, automation, and labor

(%)
100.0

16.0

80.0

12.0

60.0

8.0

40.0

4.0

Target Level: 30%

0.0

20.0
0.0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

FY

Nippon Thompson Co., Ltd. Integrated Report 2022

28

ESG Management

Sustainable Management Promotion System

Basic Sustainability Policy

In January 2022, the Group established the Sustainability
Board of Directors

Committee, chaired by the president and CEO, to promotesustainable management Group-wide and across theare innovative (innovation), based on advanced technology (knowhow), and rich in creativity (originality), which is theorganization based on our Basic Sustainability Policy.

essence of the IKO brand philosophy. In addition, through the implementation of the Code of Conduct and the IKO

Supervision

Sustainability Committee
Chairperson: Shigeki Miyachi, President & CEO

The Committee meets regularly, in principle once every

Group Materiality—the guidelines for shared values and actions by all officers and employees of the Company andhalf year, mainly to develop a sustainability promotion

the Group—we will strive to build a relationship of trust with our stakeholders, improve our corporate value, realize asystem and to review issues related to each material issue

prosperous global environment, and develop a sustainable society by providing products society needs.

Supervision(materiality), with the aim of steadily advancing sustainable

Medium-Term Targets for 2030

ReportEach Department and Group Company

management and improving our corporate value.
Long-Term Targets for 2050 (Vision)

Report
ESG Management—the Group aims to achieve both sustainable growth and social sustainability by promoting corporate activities that

Action Plan

Specific SDGs
ESG Management Environment

Under our management philosophy— A Company Centered on Technology Development that Contributes to Society

IKO Group Materiality: 6 Themes
16 Issues to Be Addressed

Nippon Thompson’s Value Creation

Sustainable Management Promotion• Continue and strengthen energy conservation• Reduce actual greenhouse gas emissions from business operations by

50% or more from the baseline year

• Develop specific action plans to achieve medium-term targets• Improve accuracy of calculating greenhouse gas emissions of Groupsubsidiaries• Achieve a high level of accuracy when calculating greenhouse gas

Promoting supply chain management

Adapting to climate change(2)
Contribute to technologicalinnovation by leveraging coretechnologies• Carbon neutrality throughout the entire Group

Promoting open innovation, suchas industry-academia-government
collaboration• Carbon neutrality throughout the entire supply chain

emissions and build a system for collaboration toward carbon neutrality• Coordinate CSR procurement policies with partner companies• More sophisticated sustainable management linked to adapting to climate change• Enhance corporate value while responding to climate change• Respond to and disclose achievement of TCFD recommendations• A company that thoroughly refines all technologies related to machine elements and• Continue and strengthen technological collaboration with industry,receives requests for technological collaboration from around the world

academia, and government agencies• Accelerating our contribution to technological innovation by globally developing newmarkets and new business domains

global sales growth (overseas net sales ratio of 60% or more)• Develop new products with value for solving social issues, such as carbon

neutral components
Pursuing product quality and safety(3)
Contribute to social developmentby providing products society
needs
Providing flexible and stable products• Formulate CSR procurement guidelines• Strengthen and help deepen global CSR procurement initiatives• Product development that takes into account regional characteristics andTaking on the challenge of newtechnologies and new business domains• Improve accuracy of calculating supply chain greenhouse gas emissions• No. 1 product quality in the industry• 100% customer delivery satisfaction• Global quality control system• Maintenance and improvement of product quality• Proactively collaborate with external parties with a strong awareness of open

innovation• Strengthen alliances with partner companies• Strengthen marketing analysis to accurately capture market trends

ESG Management Society(1)
Implement corporate activities
for realizing a prosperous global
environment

Environmental considerations in businessactivities• Expand sales in overseas markets• Develop better products through better contact with customers• Maintain and strengthen quality management system• Strengthen quality education for employees• Continue providing regular survey feedback to partner companies• Flexible delivery by reducing production lead times• Review systems for stable production• Promotion of automation• Reduce production lead times for target model numbers• Improve productivity by using DX and IoT• Deepen inventory strategy• Clean up areas in surrounding regions and rivers(4)
Provide healthy, safe, and secure Providing products leading to healthy,safe, and secure lifestyles
environments for people
Respecting human rights• Becoming a company that is needed and trusted by contributing to the community andsociety• Maintain good relations and revitalize local communities• Collaborate with neighboring schools to support the development of the next

ESG Management GovernanceCo-existence with local communities

generation• Participate into and support local activities• Manufacturer of key components that create the future for all industries leading to therealization of healthy, safe, and secure lifestyles• Realization of corporate activities as well as co-existence and co-prosperity ensuring fullsocial safety in the global supply chain• Create and provide high value-added products leading to healthy, safe,• Strengthen our offer of high value-added products through collaboration withand secure lifestyles• Develop products together with customers, free from preconceived ideas• Provide solutions to customers’ issues• Instill human rights policies and establish a system for conducting humanrights due diligence in the global supply chain

partner companies, etc.
• Formulate a human rights policy• Instill human rights policies into the supply chain• Conduct human rights due diligence• Acquire talented employees who will be responsible for the future of the(5)
Contribute to a society where
diverse people can thrive and be
Building a rewarding work environment
rewarded for their work
Promoting diversity and inclusion (D&I)

Improving internal controls and ensuring
compliance(6)
Continually improve complianceand governanceContinuously improving corporate
governance
Enhancing information disclosure andcommunication with stakeholders

29

Nippon Thompson Co., Ltd. Integrated Report 2022Group
• A group of employees that creates high added value in a challenging way• Work environment that realizes an optimal work-life balance• Contributing to the development of a sustainable society by ensuring diversity in humanresources, regardless of gender, nationality, career, etc.
• A system where all employees have a deep understanding of the purpose of risk

management, compliance, information security, etc., and are able to put these into
practice successfully• Clarify the Group’s human resource requirements• Human resource development through personnel rotation and education,• Implement talent management

etc., and improve educational opportunities tailored to individual
preferences and careers• Develop a high degree of employee engagement improving various
systems, etc.

• Enhance self-development support system• Expand diversity by increasing the ratio of women in management and• Promote women’s activities, including better childcare support

supervisory positions, etc.
• Develop a system so that all employees understand the purpose of risk

management, compliance, information security, etc., and are capable ofpracticing these successfully• Develop systems related to diversified work styles• Implement measures to improve employee engagement• Actively assign foreign nationals and mid-career hires to core human resources

Data

Strengthening recruitment and employee
training• Improve the content of all committee discussions• Strengthen employee education, dissemination, and self-assessment• Strengthen cybersecurity• Improve effectiveness of the Board of Directors, such as ensuring diversity• Highly fair and transparent management through the Group’s strong governance system• Strong governance system in the Group• Maintaining good relationships with stakeholders by ensuring transparent disclosure of• Ensure transparent information disclosure and build good relationships• Strengthen Group governance, including qualitative improvement of Board of

Directors’ deliberations
information

with stakeholders• Enhance voluntary, timely and appropriate information disclosure• Strengthen IR activities, including heightened communication with investors• Implement stakeholder engagement (dialogues)

Nippon Thompson Co., Ltd. Integrated Report 2022

30

environmental negative impact in FY2022 were focusedsome items, we will continue to strengthen our initiatives

on two key areas: global warming countermeasures andto achieve them. In addition, we will increase our medium-

resource recycling. We set targets consistent with thoseto long-term efforts, including by continually achieving

established by the industry associations to which wetargets, reviewing target values, and adding initiatives forbelong, and we have achieved our targets for almost all

the items to be achieved.

Senior Managing Director,
Chief Environmental Management Officer

Basic Approach

Global warming
countermeasures

Recognizing that the preservation of the global environment is an important issue common for all humankind, the Group has
been working to help resolve social issues, for instance by providing products where the C-Lube lubrication part is included thatuse IKO’s proprietary advanced technologies, based on global environment-friendly development approach with Oil Minimum
as the key concept. As part of our corporate social responsibility, we will continue to strengthen our environmentally friendly
corporate activities and contribute to the realization of a prosperous global environment.
Resource recycling

Environmental Management System
Recognizing the importance of co-existence and co-annual environmental issues and monitors the progress

prosperity with local communities in our businessof our environmental management activities. Both theactivities, we have been promoting environmental

Production and Engineering Department and the Sales andmanagement under our Environmental Policy since 1998.

Management Department have established environmental

The Environmental Committee, chaired by the executive

committees and are working as one team to realize a

director in charge of the Production Department, sets ourprosperous global environment.

Environmental Policy
1. As a company that manufactures and distributes
needle roller bearings, linear motion rolling guides, andmechatronics products, we strive to fully understand theenvironmental impact of our business activities, products,
and services as well as working to reduce this impact.
2. We promote sustainable environmental protection byfocusing our environment management system on theprevention of pollution.
3. We further enhance our environmental protection policyby setting our own management standards that addressenvironmental concerns; cooperating with environmental
protection initiatives implemented by national and local
governments and; complying with laws, regulations,agreements, and other legislation related to environmental
protection.
4. Under our management principal of being a company
centered on technology development that contributes tosociety, we continually design and develop products for
reducing our negative impact on the environment.
5. We provide environmental education to all employees
in order to instruct them on our environmental policy
and raise their awareness of the need for environmental
protection.

31

Nippon Thompson Co., Ltd. Integrated Report 2022

Environmental Management System

Board of Directors
Environmental Committee(Chairperson: Nobuya Hideshima, Senior Managing Director, Chief
Environmental Management Officer)

Sales and Management Department
Environmental Committee(Chief Environmental Officer:
Toshinao Kimura, Managing Director)

Production and Engineering
Department Environmental Committee(Chief Environmental Officer:
Toru Okajima, Managing Director)

Sales andManagement
Department

Production andEngineering
Department

Targets for FY2022

Actual Results for FY2022

Degree of Achievement

Reduce per unit CO2 emissions
from bearing operations in 2030
by 28% compared with FY1998
levels

38.6% reduction from FY1998

Achieved

Reduce unit energy consumption
by 1.0% year on year

2.4% reduction year on year

Achieved

Reduce unit energy consumption
by 1.0% on average over fivefiscal years

0.6% reduction in five-year
average per-unit energy
consumption

Achieved less than 80%

Achieve a recycling rate of atleast 96% in FY2031

Recycling rate: 96.6%

Achieved

Reduce final disposal volume by
92% in FY2026 compared with
FY2001

Final disposal amount: 97.8%
reduction

Achieved

ESG Management Society

Item

Nobuya Hideshima

ESG Management

items. However, since targets have not been achieved in

ESG Management Environment

As shown in the table below, our efforts to reduce ourThird-Party Evaluations and Certifications
As a company centered on technology development

international standard for environmental managementthat contributes to society, as stated in our management

systems. In 2003, in the Kamakura area, and in 2013,

philosophy, the Group believes that we have an important

IKO Thompson Vietnam Co., Ltd. also obtained this

responsibility to maintain a rich global environment forcertification, and we are developing environmental

future generations. We established our Environmental

initiatives based on international standards as well as

Policy in 1998, and in 2001, our main production centers,

complying with various regulations, such as the ELV

in the Gifu area, obtained ISO 14001 certification, theDirective and the RoHS Directive in Europe.

ESG Management Governance

As a company centered on technology development that
contributes to society, we will boldly take on environmental
challenges and aim to realize a prosperous global
environment through the creation of products.

Environmental Plan and Progress in FY2022• Acquired ISO 14001 Certification
Site

Year Acquired

Gifu Area

2001

Kamakura Area

2003

IKO Thompson Vietnam Co., Ltd.

2013

Data

Environmental Considerations
during Business Operations

Nippon Thompson’s Value Creation

ESG Management: The Environment

Nippon Thompson Co., Ltd. Integrated Report 2022

32

Hazardous Materials Management
Basic Approach

Hazardous Substance Management Initiatives

In order to build a recycling-oriented society, the Group isbuilding a recycling-oriented society is extremely important,Believing that delivering environmentally friendly products

Substances subject to notification under the PRTR Law

working to reduce the waste we generate and to improve

and we will contribute to creating a sustainable society

to our customers will lead to the realization of a richare strictly controlled and reported annually to local

recycling rates based on the principles of reduce, reuse,through our initiatives from a variety of perspectives.

global environment, the Group has been promoting green

governments.

procurement with the understanding and cooperation•Changes in PRTR Law Reporting

and recycle. We believe that the Group’s social role inof our suppliers by establishing the Green Procurement
Standard in 2003. Prohibited substances are restricted for

Initiatives to Reduce Waste Generation

intentional use under international laws and regulations,
including the RoHS II Directive, the European hazardous

The main waste materials generated from our operations

these targets are compressing scrap metals (grinding

are scrap metals (grinding sludge), waste oil, sludge,

sludge), and reusing packaging materials in special

grinding wheels, and waste plastic. In the Production andboxes for transportation. We also participate in activities

Engineering Department, our medium- to long-term target

promoted by local governments to reduce plastic waste,

is to achieve a recycling rate of 96% or higher by FY2031

and are working hard to reduce the number of plastic

and a 92% reduction in landfill disposal by FY2026,

containers in the cafeteria and to stop providing beverages

compared with FY2001. Our main initiatives to help reachin plastic containers.

substance control law, and the TSCA regulation, theUS hazardous substance control law. Where there is aregulated threshold value, a guarantee is required thatthe content concentration is less than that value. We
also believe that data should be made available on thepresence or absence of use and the concentration ofregulated substances, so we provide all information onthese substances at the request of our customers.

• Waste Generation Trends and Recycling Rate
Amount of waste generated (t)

96

2,500
FY2022(Unit: tonnes)

Scrap metal(grinding sludge)
1,694

88

1,500
1,000

Waste plastics 51

500

Wood waste 46

0* The above are the totals from domestic production centers (Gifu and Kamakura areas).

84
80
2018

2019

2020

2021

2022

(FY)

Recycling Metal Scrap (Grinding Sludge)
Various grinding machines

sludge), a byproduct of thegrinding process, is both
highly moist and difficult todispose of, so in the past

Grinding sludge solidificationequipment

it was sent to landfills by

Grinding fluid recovery

Recyclingof waterresources

specialized companies.

Steel mill

However, in light of oursocial role in building a
recycling-oriented society,

Solids

we are now compressing
and reducing the volume

Volumereduction

Nippon Thompson Co., Ltd. Integrated Report 2022

27

Methylene bis
Packing(4,1-phenylene) cushioning
diisocyanatematerial

5

0

0

0

6

1, 2, 4-trimethylbenzene

Fuel

7

5

0

0

0

Inorganic
cyanidecompoundHeat
treatment
agent

0

198

188

0

0

* The above are the totals from domestic production centers (Gifu andKamakura areas).

Basic Approach
The Gifu factory complex, the Group’s domestic

for environmental conservation. In addition to reducing

production center, is next to the Nagara River, one ofwater consumption by reusing water, we will continue our

the three clearest rivers in Japan, and we consider the

initiatives for strict water quality control that follow all laws

management of water resources to be an important issue

and regulations.

Initiatives for Water Resource Conservation•Water Consumption (5 years)(thousand m3)

200

large amount of water, and the main applications are fluidfor grinding and cooling water used during production.
However, for these applications, we basically employ

150

a circulation method, and our facilities are designed tominimize water use, replenishing only the amount of100

water that decreases due to natural evaporation. Further,
we are moving ahead with plans to further reduce water
consumption, including replacing hot water boilers and50

water-cooled cooling towers with air-cooled versions.
0

2018

2019

2020

2021

2022

(FY)

* The above water consumption are the totals from domestic production
centers (Gifu and Kamakura areas) and IKO Thompson Vietnam Co., Ltd.

of metal scrap (grinding
Waste
recycling

33

13

Water Resources

In some cases, the Group’s business operations use a
Metal scrap (grinding

Grinding sludge

19

92

2,000
Waste alkali (pH >8.6)
10

14

100

3,000

Waste oil 794

15

Recycling rate (%)

4,000
3,500

Glass and ceramics waste
107

Fuel

ESG Management Society

Sludge 111

Methylnaphthalene

ESG Management Governance

General waste(paper waste, etc.) 148
Soot (dust) 34

Main
FY2018 FY2019 FY2020 FY2021 FY2022
applications

Data• Breakdown by Waste Type（kg）

(emissions and transfers to the atmosphere)

Substance
name

ESG Management

Basic Approach

ESG Management Environment

Resource Recycling (Waste)

Nippon Thompson’s Value Creation

ESG Management: The Environment

sludge) in-house in order torecycle it.

Nippon Thompson Co., Ltd. Integrated Report 2022

34

ESG Management: The Environment

medium- to long-term target as soon as possible.

As part of our efforts to reduce greenhouse gas emissions,

In FY2022, actual greenhouse gas emissions (Scopes 1

we have set the baseline year as FY2019 and aim to

Basic Approachachieve a reduction of 50% or more from our baseline

and 2) were 18,385 t-CO2 at the Company; 15,930 t-CO2

emissions, 22,080 t-CO2, by FY2031. IKO Thompson

at ITV; and 1,248 t-CO2 at UBC Suzhou. The total (35,563

Vietnam Co., Ltd. (ITV) and UBC (Suzhou) Bearing Co.,

t-CO2) was up 37% from the previous fiscal year, while

To achieve carbon neutrality by 2050, the Groupgreenhouse gas emissions throughout the whole supply

Ltd. (UBC Suzhou), our overseas production subsidiaries,

emissions per unit of net sales (denominator) were 2.2%

established a Sustainability Committee in January 2022

chain, set medium- to long-term reduction targets, anduse the emission intensity database disclosed by thelower than the previous fiscal year. Emissions in FY2022

and is preparing to endorse the recommendations of theproactively reduce greenhouse gas emissions.

Ministry of the Environment of Japan and the electricity

increased from the previous fiscal year mainly due to the

TCFD (Task Force on Climate-related Financial Disclosure).

emission factors for every country published by the Instituteimpact of production adjustments in FY2021 in response

In addition, the Group will work to understand ourfor Global Environmental Strategies (IGES) and International

to the economic downturn caused by the spread ofEnergy Agency (IEA). Due to calculation accuracy issues,

COVID-19. In order to achieve our medium- to long-term

we have not set a clear medium- to long-term target attargets, we will continue to strengthen our Group-wide

this stage. However, we will work with our production

initiatives to reduce greenhouse gas emissions.

Responding to TCFD Recommendations•Electricity Consumption

our sustainable growth and is preparing to respond to

Based on the operation of the environmental management

the TCFD’s recommendations. Based on the TCFD’s

system, we assess and handle risks at the Environmental

recommendations, we will promote the following framework

Committee meetings held twice a year.

50,000and disclose the contents as early as possible.

Indicators and Targets

40,000Governance

We have set greenhouse gas emissions as our climate

30,000

The Group has set addressing climate change as anchange indicators. For Scopes 1 and 2, we will reduce

20,000important issue. The Sustainability Committee will examine

greenhouse gas emissions by 50% or more by FY2031

10,000the details of specific initiatives and build a system forfrom the baseline year (the most recent maximum

monitoring and supervision by the Board of Directors.

emissions), through aggressive energy savings, the use ofStrategy

carbon offsets, and other measures. We are also working

We will identify climate change-related risks andto achieve carbon neutrality by FY2051.

opportunities, assess their financial impact, and incorporate

60,0000•Greenhouse Gas Emissions (Scopes 1, 2, and 3)

UBC Suzhou
ITV
Nippon Thompson Co., Ltd.

(t-CO2)

2018

2019

2020

2021

2022

Unit net sales (t-CO2/million yen)

UBC Suzhou
ITV
Nippon Thompson Co., Ltd.

0.8
0.6
0.4

20,0000.2

10,000

0.0

0
2018

sources. We are also promoting energy-saving initiatives,
such as replacing air-conditioning equipment thatenvironment. At our domestic production centers, we havepreviously used heavy oil as a heat source with electric air

been installing solar panels since August 2013. In addition

conditioning and replaced fluorescent and mercury lamps

to promoting employee awareness of energy conservation

with LED lighting. To achieve carbon neutrality by 2050,

by visual representations of power generation, the solar

we will further strengthen our initiatives to reduce CO2

panels have also contributed to reducing CO2 emissions

emissions.

2019

2020

2021

2022

Scopes 1 and 2
Scope 3Category 1

Category 2

Category 3

Category 5

Category 6

Category 7(FY)* The Group has begun to calculate Scope 3 in order to understand the degree of impact on climate change from our supply chain. As shown in the pie chart(above), today Scope 3 Category 1 is understood to have the greatest impact, accounting for more than 80% of the total.

Future Plans

at power companies. In November 2021, we began

Following the TCFD’s recommendations, going forward,

Ministry of the Environment and the Ministry of Economy,

to promote the use of renewable energy for inhouse

we will identify the risks and opportunities that climate

Trade and Industry. However, there are some items that

consumption, for example, by using solar panels to supply

change poses to the Group’s corporate activities, analyze

have not been calculated yet or have been calculated only

electricity used for production at some of our factories.

and consider their impact on our earnings, etc., thenin a simplified form. We will work to improve the accuracy

Currently, we are considering installing solar panels atstrengthen our disclosure of information at the earliestof our calculations, clarify the greenhouse gas emissions ofother domestic and overseas production centers to further

possible stage. In addition, we are calculating supply chain

the entire supply chain, and proactively reduce emissions.

increase the ratio of electricity from renewable energy

35

t-CO2

(Reference)

30,000emissions is an important issue for realizing a rich global

2260,000(FY)

them into our strategy at the earliest possible stage.

The Group believes that reducing greenhouse gas

and

FY2022•Greenhouse Gas Emissions (Scopes 1 and 2)
40,000Initiatives to Reduce Greenhouse Gas Emissions

Scop
es
1

e3
op
Sc

ESG Management Society(MWh)70,000

Nippon Thompson Co., Ltd. Integrated Report 2022

Gokurakuji area

Toki area

ESG Management GovernanceRisk Management

ESG Management Environment

sites to improve the accuracy of our calculations, setting a

Data

The Group recognizes the impact of climate change on

Nippon Thompson’s Value Creation

Trends in Energy Consumption / Trends in Greenhouse Gas Emissions
and Reduction Targets

ESG Management

Responding to Climate Change

greenhouse gas emissions using the guidelines of the

Nippon Thompson Co., Ltd. Integrated Report 2022

36

ESG Management: Social Issues

Pursuing Product Quality
and Safety

Realizing a Society Where Diverse Human Resources Can Play Active Roles

Basic Approach

Human Resources Strategy

Guided by our management philosophy—A Company

Based on these strengths, we will work on recruiting,whole Group, want to “continue to produce products

We are committed to quality first, and every one of us will

Centered on Technology Development That Contributes

human resource development, compensation and evaluationthat our customers trust and are satisfactory to them.”use our creativity and ingenuity to create products thatto Society—we believe that helping to resolve social

systems, and the creation of a comfortable working

issues faced by society and our customers will lead to theenvironment to foster employees’ willingness to take onsustainable improvement of our corporate value.

challenges, support autonomous growth, and improve

employees throughout our long history, that we, as theengagement. Guided by being “a group of employees

being content with just the status quo, and provide

company that is trusted and is relied upon both by society

who have a bold and challenging spirit” as the pillar of our

products that customers can use safely and comfortably.

and our customers. So, we position the sincerity andhuman resource strategy, we will boost corporate value by

seriousness of our corporate culture and human resources

upgrading our human capital even more.

Quality Control System and Initiatives(human capital) as the source of our value creation.

We believe that the high quality and precision of our
products is a major reason why customers choose the IKO

Collaboration

Nippon Thompson
Co., Ltd.

production plants to maintain and improve the highquality of the entire Group. To provide attentive support
under our unified quality policy, we have established andare operating a quality assurance system and quality
improvement system at all sites.

Collaboration

Global Expansion
IKO Thompson
Vietnam Co., Ltd.

UBC (Suzhou)
Bearing Co., Ltd.

Quality Control
Department

Quality Control
Department

Quality Control Initiatives
For efficient quality assurance and to improve customer

and are working to strengthen our quality control system

satisfaction, the Group has obtained ISO 9001 certification,

throughout the entire supply chain.

an international management system standard, at the Gifu
and Kamakura areas, as well as at IKO Thompson Vietnam
Co., Ltd. and UBC (Suzhou) Bearing Co., Ltd.
As part of our quality control for production, we have

Creating Quality to Improve Customer
Satisfaction
Quality is an extremely important element of our products,

introduced an inspector system. The person in charge

which is the core of the IKO brand. We will continue toof each department assigns inspection assistants, who

maintain and improve quality within the Group and further

are certified as inspectors, from among experienced

strengthen our supply chain management to build an

employees and who have knowledge and skills related

optimal overall quality control system.

to inspections in that certification category. We are also

such as our ability to respond to and make proposals

house processes by conducting regular internal audits

to customers, is also one of our strengths. We value

once a year as well as ad hoc internal audits.

every type of quality through our products and will further

Motivation
for selfdevelopment

Well-developed
education

Childcare
supportEngagement
Diversity

Customerperspective

Sense ofsecurity

SafetyCorporate culture that is sincere with integrity,
supported by a group of employees

strengthen our customer-oriented quality so that theterms of quality, delivery, and cost. We provide feedback tosuperiority of the IKO brand can be communicated more

our suppliers on the results of these periodic evaluations,widely and effectively.

Nippon Thompson Co., Ltd. Integrated Report 2022

A group of employees who have a bold and challenging spirit

In addition to product quality, our quality of service,

working to maintain and improve the level of quality for in-

In addition, once a year, we evaluate our suppliers in

Resolving problems for society and customers

Quality Control
Department

brand. The Group has developed a quality system for our
departments in Japan and is expanding this to overseas

Creating Future Value

Shin Kasahara, Managing Director and Quality Assurance Officer

Data

Quality Control System

37

For this reason, it is essential that we continue to be a

ESG Management Society

repeatedly making optimal overall improvements without

ensure that these actions remain effective.

ESG Management Governanceand will maintain and improve high quality standards bysatisfy our customers. We will make improvements to

ESG Management

Basic Approach

Quality Policy

originates from our strong belief, deeply rooted in all

ESG Management Environment

The pursuit of quality, one of the strengths of the Group,

The Group has set the policy for quality on the right path

Nippon Thompson’s Value Creation

Human Capital

Nippon Thompson Co., Ltd. Integrated Report 2022

38

Indicators
FY2019 FY2020 FY2021 FY2022
Percentage of employees receiving
12.6
14.2
11.9
10.0
training by job level [%]Training cost per person
28
34
16
20
[thousands of yen]

Basic Approach

Specific Initiatives

From the viewpoint of supporting employees’ autonomy
and encouraging their desire to grow, we promote
initiatives to support self-development. From thisperspective, we help our employees to acquire national
qualifications, such as technical skill tests, and every year
we see a large number of employees gaining qualifications.
With the improvement of employee skills through these
activities, we aim to further improve quality and provide
high value-added products. In addition, from FY2023,
we will establish a new incentive system for public
qualifications to support the autonomous growth of ouremployees.
We will continue to examine training programs suited
to the work and needs of our employees while working tobuild an education system that develops individuality.

We believe that it is essential to ensure diversity, for

Guided by our Basic Policy on Diversity and Inclusion,

example when appointing employees, to prevent biased

we are committed to ensuring diversity in our hiring andthinking and to generate sustainable profits. Diversity is

appointment of employees.

• Number of national qualifications held
1,421

1,401

The Company, as a manufacturer, especially in the

global society, making products at appropriate prices,

machinery industry, tends to have a high percentage ofsales for proposing and supplying high value-added

male employees. To overcome this situation, in recent

products, and the administrative departments that support

years we have hired a set percentage of female employees

them.

with the measures such as holding company information

For this reason, the Group promotes diversity andsessions for women. As a result, the percentage ofinclusion (D&I) to boost corporate value from multiple

females among all employees and among core personnel

perspectives, including gender and other diversity andhas steadily increased.

skills, and we strive to create an environment where every

We will continue these activities and, in combination

employee can work on their own initiative with a sense ofwith the strengthening of childcare support, aim to ensure

fulfillment.

diversity in our human resources, including appointing

Moreover, to respond to the diversified needs of society,(persons)
1,500

1,400

important for the development of technology useful to a

1,390

women to core personnel positions, with the following

we consider securing diversity in human resources to be

specific targets by the end of March 2025.

an important issue. Accordingly, we will work to develop[Target 1] Steadily increase the percentage of womenamong all full–time hires to 20% or more

employees by supporting them guided by their own career

1,355

goals in harmony with their respective work styles, based

1,300[Target 2] Increase the number of women in managementon the principle of providing fair opportunities for skill

positions and above by 1.5 times or moredevelopment and career advancement to all employees

compared with March 2022

regardless of gender, age, nationality, work experience,

1,200
0
2019

2020

2021

2022

(FY)

ESG Management

The Group believes that the trust and support of society
and customers through the sincerity and integrity of ouremployees is the source of value creation, and that it isimportant to develop human resources that encourage aspirit of challenge based on these principles.
As a specific policy, we are working on on-the-job training,
one pillar of our development, and our corporate culture is
supported by a system where the entire workplace carefully
attends to and educates every employee individually.
In addition, we are striving to develop leaders throughoffsite training based on varied job levels with the intentionof implementing human resource strategies. We are also
conducting practical training for every department. In
addition, we will reinforce the development of the next
generation of management executives through training forsenior managers and others.
Also for human resource development, since 2008
the Group has accepted many technical trainees fromIKO Thompson Vietnam Co., Ltd., and is promoting skill
exchanges. We position this training as a contribution to thedevelopment of human resources who will be responsible forthe economic development of their region, and will also leadto develop internationally-minded employees through thediverse experiences of our personnel, something that we willcontinue to work in the future.

Supporting Self-Directed Career Growth

ESG Management Environment

Developing Human Resources through
Education

Promoting Diversity and Inclusion (D&I)

etc.

Percentage of female new graduates hired
Percentage of female employees
Percentage of female managers and supervisors
Percentage of female managers

(%)
40
30

* Some employees hold multiple certifications.

ESG Management Society

Strengthening Human Resource Development

Nippon Thompson’s Value Creation

ESG Management: Social Issues

20
10
0
2019

Creating a Rewarding Work Environment

Indicators
Rate of employees leaving for
personal reasons [%]Turnover rate within three years of
employment [%]39

FY2019 FY2020 FY2021 FY2022
1.4
10.6

2.3
9.4

Nippon Thompson Co., Ltd. Integrated Report 2022

1.0
11.1

1.1
13.5

2022

(FY)

term perspective. We will examine current systems andapproaches to continue supporting our employees’ senseof security.

Occupational Health and Safety Initiatives

Support for Balancing Childcare and Work

Basic Approach

Health and Safety Initiatives

Balancing childcare and work is a major barrier to
employees’ career plans, and to foster a sense of security
among employees, we provide childcare support while
paying close attention to them as much as possible.
We have set up systems based on this perspective,
and our childcare leave and shorter working hours forchildcare exceed the legal requirements. We also support
employees who take childcare leave to balance work andchildcare by working closely with their departments andthe HR Department to address their individual concerns,
as much as possible.
We will continue to consider ways to provide betterchildcare support by listening to our employees, and at thesame time, we are promoting the use of childcare leave formen.

We see our human capital as a source of value creation,

All members of the Group are aware of the importanceand especially as a manufacturing company with manyof “safety first” and are engaged in health and safety

employees engaged in production, and we consider

programs that maintain safe, comfortable workplaces

safeguarding the health and safety of our employees to bethat enable employees to work with enthusiasm andone of the highest priorities for corporate management.

vigor. Specifically, we are working to prevent accidents

Therefore, we aim to harmonize our business activities

by holding regular factory safety patrols, by conductingwith employee health and safety based on the principle

risk assessments, and distributing information at safetyof minimizing physical hazards and adverse effects on theand health committee meetings and council meetings. In

health of all people participating in our business activities

addition, we are working to raise awareness of accident

through the participation of all employees in health andprevention by displaying accident-free records (number ofsafety programs.

days) at every workplace within the worksite.

Indicators

FY2019 FY2020 FY2021 FY2022

Number of people taking childcare leave

1

2

4

10

Childcare leave return percentage [%]

100

100

100

100

Indicators

FY2019 FY2020 FY2021 FY2022

Annual paid leave taken (%)

55.8

62.8

At the same time, by establishing a mental health

64.5

62.8

consultation desk and monitoring long working hours, wewill further promote the health and safety of all employees,

Average monthly overtime hours

17:42

12:23

4:22

10:55

Occupational accident frequency rate

2.601

0.379

2.584

0.739

Occupational accident severity rate

0.029

0.001

0.006

0.001

ESG Management GovernanceWe believe that the execution of our human resource
strategy requires human resource development from a
medium- to long-term perspective and that an environment
where employees can work with a sense of security isessential to achieving this goal.
To foster a sense of security among employees, weconsider benefits to be an important issue. So, we focus on
improving programs, such as housing and meal subsidies,in cooperation with labor unions, with which we maintain agood relationship, in order to increase the level of employee
satisfaction. In addition, we are working to improve employee
engagement by fostering individual growth and realizing
career plans through interviews based on a self-assessment
system and a target management system.
Through these initiatives we have been able to keep
our turnover rate low for many years and have been able
to develop human resources from a medium- to long-

2021

Data

Bolstering Systems to Support Employees’
Sense of Security

2020* These percentages are for Nippon Thompson alone, as of January 1 ofeach fiscal year.

as we consider this a priority issue.

* Frequency and severity of occupational accidents do not include
employees hired from outside the Company (temporary employees).

Nippon Thompson Co., Ltd. Integrated Report 2022

40

ESG Management: Social Issues

also our entire supply chain must take responsible actions to meet the demands of society.

Basic Approach
We aim to be a company that is needed and trusted byby good corporate citizenship, as defined in our Code of

the community and society by contributing, through our

Conduct.

corporate activities, to the creation of a safe and securesociety in all regions. We believe that this will not only

Basic Procurement Policy
will procure fairly and optimally from suppliers with competitive prices, focusing on quality, cost, and on-time• We
delivery.
• We will comply with all laws and regulations and conduct fair transactions.
• We will promote green procurement as we conduct procurement that considers the global environment.
will build a supply chain that will develop sustainably and fulfill our social responsibilities through our• We
corporate activities.

CSR Procurement Initiatives
It is essential for a company to grow sustainably not
only to fulfill its legal responsibilities, but also to fulfill its

CSR Procurement Promotion System

Nippon Thompson’s Value Creation

As our business grows globally, we believe that in order to earn the trust of the international community, not only the Group but

improve our brand image, but will also lead to increasing

Please refer to the Company’s website (below) for the
Code of Conduct.
https://www.ikont.co.jp/company/eco/csr-action-plan.html (in Japanese)

our corporate value as we enhance our human capital

ESG Management

Basic Approach

Co-existence with Local Communities
and Social Contribution

Specific Initiatives
The entire Group, including not only our domestic but also

and riverbanks, participating in community revitalization

our overseas sites, has been deeply involved in community

events, giving factory tours to nearby schools, and making

activities. In particular, in the Gifu area, our main production

donations to local charities, in this way building strong

center, we have been contributing to the local community

relationships with the local community.

ESG Management Environment

Supply Chain Management

over the years, from example by cleaning up along roadssocial responsibilities as a member of society throughcorporate activities, in other words, CSR initiatives. Since
FY1999, our basic philosophy has been “to accomplish

Our One Team
Procurement Project*environment-friendly corporate activities as a corporatesocial responsibility, to reduce our environmental loads,

Implementation Standards to promote green procurement.
In July 2022, we formulated the IKO Group Supplier
CSR Procurement Guidelines to achieve our social
responsibility more broadly, including the consideration of

ESG Management Society

In 2003, we established the Green Procurement

Suppliers

and contribute to creating a rich global environment.”
Production
Procurement Dept.
Sales & Marketing
Administration Dept.

River cleanup drives

Classroom participation at a neighboring junior high school* The photo on the left shows a class, and on the right shows a commemorative phototaken during a collaborative bus service.

Introducing the Company to students atneighborhood events

Factory tour for neighborhood residents

Gifu factory complex

human rights and labor issues as well as environmental

Corporate Planning
Dept.

issues.
Going forward, to improve the effectiveness of thepromote the use of the guidelines and strengthen our
initiatives.
For details on the IKO Group Supplier CSR Procurement

ESG Management Governanceguidelines, we will work closely with our suppliers to* A Company-wide cross-functional organization consisting of the
Production Procurement Dept., the Sales & Marketing Administration
Dept, the Gifu factory complex, and the Corporate Planning Dept.

Guidelines, please see the Company’s website.
https://www.ikont.co.jp/pdf/csrguideline20220719.pdf (in Japanese)

Ceremony for donations to Mino City, Gifu
Prefecture

Since the Group conducts business globally, we believe

the entire supply chain. It is clearly stated in the IKO Group

that considering human rights based on international

Supplier CSR Procurement Policy Guidelines that we will

standards is the foundation for managing sustainability,

respect basic human rights, including the prohibition of

and we have been promoting respect for human rights, as

forced labor and child labor. In addition to this, we plan tostated in our Code of Conduct.

formulate and announce our own Human Rights Policy by

In recent years, the importance of corporate initiatives
to respect human rights has been increasing significantly,

Data

Respect for Human Rights throughout the Entire Supply Chain

the end of FY2023.
Through these activities, we aim to promote respect for

and we recognize that we are required to take the initiative

human rights for all stakeholders related to our businessto respect human rights not only in our own company but

activities in cooperation with various stakeholders including

also in our supply chain. With this perspective in mind, webusiness partners.

would like to ramp up respect for human rights throughout* Source: Work Notebook for Elementary School Students, 2022 Edition

41

Nippon Thompson Co., Ltd. Integrated Report 2022

Nippon Thompson Co., Ltd. Integrated Report 2022

42

Corporate GovernanceImproving Corporate Governance2015

Basic Approach
We believe that one of our priorities is facilitating promptof technologies to meet user needs and preservation of theand effective decision making, enhancing supervision ofenvironment globally. Based on this belief, we will enhancebusiness execution, ensuring compliance and increasing

corporate governance.
Please refer to the Company’s website below for the
Basic Policy on Corporate Governance.

under a basic management policy of continuing to develop

https://www.ikont.co.jp/ir/business/pdf/
governancepolicy20151110.pdf (in Japanese)together with society by promoting corporate activities in

Corporate Governance System

Management Committee/Executive Directors

Legal Dept.

Maintenance/
Operation

ReportDepartments

Audit/Assessment

Cooperation/Report

Cooperation/Report

Accounting Audit

Corporate Governance Structure• Appointment ofa female Director

We conduct an annual evaluation of the Board of Directors

over the medium to long term. The evaluation is based on

to verify whether or not the Board is functioning effectively

questionnaires and interviews; the results are discussed byand to further strengthen its effectiveness for achieving

the Board of Directors.

Summary of Evaluation Resultsfor FY2022
Improvements from Previous
Year• Conducted evaluation questionnaires for all directors and Audit & Supervisory Board members• Individual interviews with each officer by the president and CEO, who chairs the Board of Directors• Confirmation that the Board of Directors as a whole is effective• The atmosphere allows for free and open comments from outside officers, and there is a healthy and relaxedatmosphere for active discussion• Appointed a female outside director to ensure diversity in the Board of Directors• Developed a system to address sustainability issues• Formulation and operation of succession plans for CEO, etc.

Future Challenges• Ensuring time for discussion of medium- to long-term management strategies and plans• Method of operation of the Compliance, Risk Management, and other committees

Approach to Nominations
Approach to the Composition of the Board of
Directors

directors is resolved at meetings of the Board of Directors.

The Company’s policy is to appoint candidates for directors(1) Formulation and operation of a succession plan for thewho, regardless of gender, age, nationality, etc., have

Succession Planning
President

excellent character, insight and ability, high ethical standards,

The Nomination and Compensation Advisory Committee

and are judged to be able to improve the medium- to long-

discusses the formulation and operation of the succession

term corporate value of the Group and earn the trust ofplan for the president, taking into consideration his/herOrganization

Board of Directors

Audit & Supervisory Board

Nomination and Compensation
Advisory Committee

Management Committee

Composition

9 members(6 internal + 3 external)* Chaired by the president
and CEO

4 members(1 internal + 3 external)* Chaired by the full-time Audit& Supervisory Board member

4 members (1 internal + 3 external)* Chaired by outside director

6 members (6 internal)* Chaired by the president
and CEO

stakeholders, in order to provide a balance of knowledge,

experience, ability, personality and other qualities, based on

experience and ability for the Board of Directors as a whole.

the management philosophy and management strategy, as

Deliberate and report on mattersrelated to nomination andcompensation as a voluntary advisory
body to the Board of Directors

For a skills matrix listing the knowledge, experience, andnecessary, and then report to the Board of Directors, when

Prompt managementof decision-making andbusiness execution

abilities of the directors, please refer to main expertise andnecessary.

experience in the list of officers on page 47.

(2) Appointment criteria and procedures
The appointment of the president is decided by the Board of

Matters related to nomination andcompensation of directors and Audit& Supervisory Board members, etc.

Confirmation of progressagainst targets and forsolutions to issues, etc.

Policies and Procedures for Appointing andDismissing Directors at the Nomination andCompensation Advisory Committee
The president and CEO, when appointing directors,

Committee.

proposes candidates who are vetted by the Nomination and(3) Dismissal Criteria and ProceduresCompensation Advisory Committee, an auxiliary advisory

Dismissal of the president is decided by the Board ofbody of the Board of Directors, and then approved by the

Directors when it becomes difficult for the president toBoard of Directors and appointed at the General Meeting

execute his/her duties.

Objectives

Ensuring efficient executionof duties by directors

Monitoring and supervising
management

Main Discussion
Items

・ Decisions on importantmanagement matters・ Supervision of businessexecution

・ Checks on businessexecution
・ Reporting on the status ofinternal audits, etc.

Number of
Meetings Held
(FY2022)

18 times

14 times

3 times

42 times• In June 2022, the Board of Directors made progress in diversifying membership with the addition of a new female outside director who has extensive experienceand achievements in international corporate management.
• In the Nomination and Compensation Advisory Committee, we require that the majority of the committee members are outside directors and that the chairpersonof the committee is an outside director, in this way ensuring independence and objectivity.

43(more than 1/3 independent non-executive directors)• Established Sustainability Committee

Nippon Thompson Co., Ltd. Integrated Report 2022

ESG Management Society

ReportReport• Assessed

ESG Management Governance

ReportPresident and CEO
Report(appointment of several independent outside directors)
effectiveness of the Board of Directors• Increased number of outside directors

Directors based on the succession plan and after receivinga report from the Nomination and Compensation Advisory

Data

ReportAppointment/
Dismissal

Accounting Auditor

ReportBoard of Directors/Directors

ReportAudit & Supervisory
Board (Members)

Appointment/
Dismissal

ReportInternal Audit Dept.

Sustainability
Committee
Risk Management
Committee
Compliance
Committee
Information Security
Committee
Company-wide
Environment
Committee• Established Nomination and Compensation Advisory Committee• Increased number of outside directors

Evaluation and Analysis
Methods

Audit

ReportSupervision

Improving the
Objectivity ofManagement
Decisions
Increasing
Diversity of
the Board of
Directors

sustainable growth and for improving corporate value

General Meeting of Shareholders

Appointment/
Nomination and
AdviceCompensation
Advisory Committee

directors’ compensation, etc.
• Formulated basic sustainability policy• Formulated handling and management standards for cross-shareholdings

Assessing the Effectiveness of the Board of Directors

consideration of our social mission and pursing development

Appointment/Dismissal• Established Basic Policy on Corporate Governance

ESG Management Environment

and improve corporate value over the medium to long term

2022
• Formulated policy for determining the details of

ESG Management

PolicyFormulation

management transparency to achieve sustainable growth

Nippon Thompson’s Value Creation

ESG Management: Governanceof Shareholders. In addition, the appointment of executive

Nippon Thompson Co., Ltd. Integrated Report 2022

44

ESG Management: Governancebased compensation, and basic compensation is also paid
to the Company’s outside directors.
Please refer to the Corporate Governance Reportposted on the Company’s website for the details of thepolicy for determining compensation, etc. for individual
directors (including an overview of the monetary and stockcompensation systems, as well as performance-linked
compensation and the procedures for determining Directors’compensation).

Stock-based Compensation

Monetary compensation
Variable compensation (linked toshort-term performance)
20

Stock-based compensation
Variable compensation (linked tomedium- to long-term performance)
15

Cash/StockMonetary compensation
Fixed compensation

Target Ratio

65

Group Governanceand collaborate with them on business operations to ensurethat business execution is successful. The Internal Audit
Department conducts internal audits of the Company andaffiliates then reports the results to the Board of Directors
and the Audit & Supervisory Board (Members).
Decisions on important matters at affiliated companies arereported to the Company, the parent company, in advance,
and are carefully reviewed and approved by the Management
Committee or the Board of Directors to make certain of thesuitability of business operations at affiliated companies.
Further, for ensuring effective and smooth execution ofbusiness operations at affiliated companies, the Company
has established the Affiliated Company Management
Regulations to clarify the management system and operation
methods of affiliated companies.

The Group, consisting of the Company and 15 Group
companies (including eight consolidated subsidiaries andseven nonconsolidated subsidiaries), manufactures and sells
bearings and other products in Japan and around the world.
Based on the Regulations on Division of Duties, etc., thedivisions under the control of the Company are given theauthority and responsibility to manage affiliated companies,
and they cooperate with related divisions to provide
guidance and the full implementation of internal controls forthe affiliated companies that they are in charge of.
The officers of affiliated companies are appointed
by the Company’s directors or senior employees, etc.
to successfully execute and supervise their business
operations. By reporting and discussing business operations
with affiliated companies, as necessary, we share information

Cross-Shareholdings
The Company has established internal
standards for cross-shareholdings. The
main purpose of cross-shareholdings
is to maintain stable business
relationships, and the Board of
Directors annually examines the need,rationality, and other factors for retaining
the holdings after comprehensively
considering their stability as investment
targets, among various criteria.
As a result, the Company willconsider selling shares that are
determined to have little significance forour holdings and will work to reduce
the number of shares held.

45

Nippon Thompson Co., Ltd. Integrated Report 2022

Verifying the Rationality for Holding Shares
Balance Sheet Amount
Number of Stocks Held
(Millions of yen)
(Issues)
53

12,00052
51
50

10,000

49
48
47

8,000

46
45
44

6,000

43
42
41
40

4,000
0

18 19 20 21 220FY

The Board of Directors
Qualitative
annually reviews every
Verification
shareholding fromboth qualitative andOverallquantitative perspectives. Quantitative
Verification
Judgment
The qualitative• Rationality
verification is related
Continue Holding
× No rationality
to business strategies,
such as maintaining smooth business relationships withcustomers and suppliers and ensuring that supply chains
function well.
The quantitative verification relates to, for example,
whether the earnings from shareholdings, including relatedtransactions, exceed the cost of capital.
Reduction Target

Holding Policy

Outside Director

Nippon Thompson’s Board of Directors
meetings, where frank and constructive
opinions are exchanged
Since my appointment as an outside director in June 2013, I havemainly focused on improving the Group’s governance system,
upgrading risk management, and promoting information disclosure,drawing on my professional perspective on corporate legislation andmy experience as an officer at other listed companies. Currently,
I am performing my duties with attention to the advisory functionthat delves more deeply into the realities of management, and, as
the chairperson of the Nomination and Compensation Advisory
Committee, I deliberate on the appointment of directors andexecutive officers, their compensation, and other matters, and strive
to ensure objectivity and transparency.
The Board of Directors engages in a frank and constructive
exchange of opinions. One of the unique characteristics of our
Board of Directors is that there is a free, open atmosphere so that
all members can speak frankly. Communication between outside
directors and Audit & Supervisory Board members is also strong. In
particular, since the full-time Audit & Supervisory Board member, inthe course of their duties, has a vast amount of information on theimplementation of the Company’s strategies and measures as wellas the current state of internal controls, we work closely with him
and other Audit & Supervisory Board members to share information
every day at meetings for exchanging opinions and similar meetings,
The end goals are for outside directors to better understandimportant audit issues and to stimulate discussions, etc. of theBoard of Directors.
In addition, three times a year, the Company holds a Top
Management Review where the management team receives reports
from internal departments on the progress of the Medium-TermBusiness Plan. Outside directors and Audit & Supervisory Board
members also attend these meetings.
This allows all officers to share detailed information about theCompany’s situation before discussions take place, and enables
the Board of Directors to make more effective judgments on
management and other decisions.
We recognize that, based on Nippon Thompson’s solidmanagement policies to date and our corporate size, the Company
has steadily put in place an effective governance system. In addition
to Satoshi Saito, a university professor with a background in financial

institutions and an expert in management and taxation, Atsuko
Noda, who has accumulated extensive experience in the businessworld, was appointed as an outside director in June of this year,
further strengthening the diversity of the Board, including myself
as an attorney at law. We intend to continue to work closely with
top management to supervise and further support advances ingovernance and management.

ESG Management Environment

Bonuses

Youichi Takei

Contribute to the realization of soundmanagement with an emphasis on
sustainability, from a third-party perspective
In the IKO Medium-Term Business Plan 2023, announced in May
2021, the Group made clear the intention to achieve more growth
as a technology development-based company that contributes
to society and as a company with a strong global presence. In
the Medium-Term Business Plan, we strengthened measures toimprove our corporate value by, for instance, setting targets thatare conscious of business structures affected by rapid market
fluctuations and responses to social changes. As an outside
director, I am closely monitoring the progress of these measures.
We also appreciate the Company’s sound management that has anemphasis on sustainability, which we believe is a timely initiative.
On the other hand, while we have been able to respond flexibly toshort-term issues up to now, as mentioned above, there is an urgent
need to strengthen management from a medium- to long-term
perspective, which is also a focus of the Medium-Term Business
Plan. Specifically, we believe that the management theme for thefurther growth of the Group is to steadily develop more discussions,mainly on the roadmap for the realization of our medium- to longterm vision, along with DX-readiness, the promotion of diversity,and the nurturing of next-generation executives. We believe it isnecessary to constantly review our governance system, transfer
more authority to executive officers and others, and further revitalize
the Board of Directors to focus discussions on medium- to longterm management and new value creation.
We, as the outside directors of Nippon Thompson, not only
contribute to the development of the Group by exercising our
supervisory and advisory roles to management, but also have asocial mission to contribute to the realization of a better society
through sound and fair corporate management. We will continue towork with President Miyachi and other top management to improve
corporate governance.

Nippon Thompson Co., Ltd. Integrated Report 2022

ESG Management Society

Basic Compensation

ESG Management

https://www.ikont.co.jp/ir/business/pdf/cgreport20220627.pdf (inJapanese)

Compensation System for Executive Directors

Fixed/Variable

As one of the outside directors, I willcontribute to the realization of themedium- to long-term vision by improving
management supervision and by monitoring
operations from an objective standpoint.

ESG Management Governance

The Company’s basic policy is to link the compensation
system of directors to business performance and shareholder
returns in order to incentivize the improvement of the Group’sbusiness performance and increase the corporate value overthe medium to long term, as well as to set the compensationof individual directors at an appropriate level based on their
responsibilities and achievements. Guided by this basic
policy, the compensation of the Company’s executive
directors includes basic compensation, bonuses, and stock-

Data

Basic Policy

Nippon Thompson’s Value Creation

Message from the Outside Director

Executive Compensation46

Officers and Skills Matrix

Nippon Thompson’s Value Creation

ESG Management: Governance(as of June 27, 2022)

Audit & Supervisory Board Members

Toshinao Kimura

Koji Shimomura

Tooru Okajima

Shin Kasahara

Youichi Takei

Satoshi Saito

Atsuko Noda

Toshihiko Goto

Taketo Nasu

Position

President & CEO

Senior Managing Director

Managing Director

Managing Director

Managing Director

Managing Director

Outside Director

Outside Director

Outside Director

Full-time Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Outside Audit & Supervisory
Board Member

Apr. 1978 Joined
Apr. 1981 Joined theApr. 1981 Joined theApr. 1984 Joined The
Yamaha Motor Co., Ltd. Company
Company
Tokai Bank, Limited
Mar. 2013 Director &June 2010 Director
June 2012 Director and (currently MUFG
Managing Executive
and General Manager
General Manager ofBank, Ltd.)
Officerof Sales & Marketing
Western Japan Regional June 2013 Joined theJune 2017 Outside
Headquarters
OfficeCompany
Director of Fujibo
Apr. 2015 Director and Apr. 2018 Managing
July 2013 General
Manager of Corporate
Holdings, Inc.
Senior Executive Officer, Director, in charge ofJune 2018 Outside
Chairman
Sales Dept. and Sales Planning Dept.
June 2015 Director andDirector of ShinMaywa of IKO International,
Engineering Dept.
Executive Officer, inIndustries, Ltd.
Inc., and Chairman
Apr. 2022 Managing
charge of Accounting
June 2019 Outsideof Nippon Thompson
Director, in charge ofDept., Logistics
Director of the Company Europe B.V.
Corporate Planning
Operations Dept. andJune 2022 Senior
Apr. 2018 Managing
Dept., Personnel andSecretary Dept., andManaging Director of
Director, deputy in
General Affairs Dept.,
General Manager of
the Company, in charge charge of Production
Accounting Dept.,
Corporate Planningof Production Dept. and Dept., and General
Logistics Operations
Dept.
Legal Dept.
Manager of Gifu factory Dept. and Secretarycomplex
Dept., deputy in charge Apr. 2018 Managing
Apr. 2022 Managing
of Corporate Business Director, in chargeof Accounting Dept.,
Director, in charge ofDevelopment Dept.,
Information System
Sales Dept. andand General Manager
Sales Engineering Dept., of Export Administration Dept., Logistics
Operations Dept. andand deputy in charge
Dept.
Secretary Dept.
of Corporate Business
Apr. 2022 Managing
Development Dept. andDirector, in charge of
Products Development
Information System
Center
Dept. and DX
Promotion, deputy incharge of Production
Dept., and General
Manager of Gifu factorycomplex

Apr. 1984 Joined theCompany
June 2016 Director andExecutive Officer, andGeneral Manager ofTechnical Center
Apr. 2022 Managing
Director, in charge ofCorporate Business
Development Dept.,
Quality Assurance
Dept., Products
Development Center,
Technical Center, UBC(Shanghai) Precision
Bearing MFG. Co.,
Ltd. and UBC (Suzhou)
Bearing Co., Ltd., andGeneral Manager ofTechnical Center

Apr. 1993 Registered
as attorney (Dai-Ichi
Tokyo Bar Association)
Apr. 2000 Partner ofMeitetsu Law Offices(current position)
June 2003 Outside
Audit & Supervisory
Board Member of theCompany
June 2006 Outside
Audit & Supervisory
Board Member of
Yamakin (Japan) Co.,
Ltd. (current position)
June 2013 Outside
Director of theCompany
June 2020 Outside
Director of Daio Paper
Corporation (current
position)Jan. 2022 Audit &Supervisory Board
Member of Nippon
Export and Investment
Insurance (current
position)

Apr. 1982 Joined The
Tokai Bank, Limited(currently MUFG
Bank, Ltd.)
Apr. 2005 Professor of
School of Management(current position)
June 2007 Outside
Audit & Supervisory
Board Member of theCompany
June 2016 Outside
Director

Apr. 1983 Joined
Japan Airlines Co., Ltd.
Apr. 1991 Purser
Sept. 1994 Established
Henkel & Grosse Japan
Representative Office,Japan Representative
Dec. 2002
Representative Director& CEO of Grosse
Japan Inc.
June 2022 Outside
Director of theCompany

Apr. 1983 Joined The
Tokai Bank, Limited(currently MUFG Bank,
Ltd.)
June 2010 Executive
Officer, The Bank ofTokyo-Mitsubishi UFJ,
Ltd. (currently MUFG
Bank, Ltd.)
June 2012 Director
and Senior Managing
Executive Officerof Mitsubishi UFJ
Research andConsulting Co., Ltd.
June 2018 Full-time
Audit & Supervisory
Board Member of theCompany

Apr. 1996 Registered
as attorney (Dai-Ichi
Tokyo Bar Association)
Jan. 2001 Attorney
admitted to the New
York State Bar, USA
Apr. 2009 Partner,
Blakemore & Mitsuki(current position)
June 2013 Outside
Audit & Supervisory
Board Member of theCompany

Apr. 1976 Joined The
Tokai Bank, Limited(currently MUFG
Bank, Ltd.)
Sept. 2004 Executive
Officer of UFJ Bank
Limited (currently
MUFG Bank, Ltd.)
Apr. 2012 Managing
Executive Officer of Aioi
Nissay Dowa InsuranceCo., Ltd.
June 2015 External
Auditor of The Chukyo
Bank, Ltd. (current
position)
June 2017 Outside
Audit & Supervisory
Board Member of theCompany

Apr. 1997 Joined Tokyo
Electron Ltd.
Feb. 2014 Opened
Kazuhisa Hayashida
CPA Office as President(current position)
June 2017 Outside
Audit & Supervisory
Board Member of
BlueMeme Inc. (current
position)
Dec. 2017 Audit& Supervisory
Board Member of
OpenModels Inc.
(current position)
June 2019 Outside
Audit & Supervisory
Board Member of theCompany
July 2020 Outside
Audit & Supervisory
Board Member ofManabi-aid Co., Ltd.
(current position)
July 2021 Director(part-time Audit &Supervisory Committee
member) of DN
HOLDINGS CO., LTD.
(current position)

responsibilities, andsignificant
concurrent positions

Period of service
Number of shares heldRate of attendance at meetings
Attendance at Board of
Directors’ meetings
Attendance at Audit &Supervisory Board Meetings
Affiliated committees
Nomination andCompensation Advisory
Committee
Expertise and experience

12 years

3 years

12 years

10 years

7 years

6 years

9 years

6 years

New Appointment

4 years

9 years

5 years

3 years

119,630 shares－

24,612 shares

54,120 shares

34,483 shares

17,536 shares

－

－

ー

9,391 shares

－

－

－

18/18 times

18/18 times

18/18 times

18/18 times

18/18 times

18/18 times

18/18 times

18/18 times

ー

18/18 times

18/18 times

18/18 times

18/18 times

14/14 times

14/14 times

13/14 times

14/14 times

Corporate management
Manufacturing, technology,
and development
Sales and marketing
Finance and accounting
Compliance and risk
management
Personnel and humanresources development

•
•
•
•
•

Global business

•
•
•

•
•
•

•
•

•

•
•
•

•
•
•

(Chairperson)

•
•
•

•

•

•

•

•
•
•

•
•
•

Data

Career summary, positions,Apr. 1979 Joined The
Tokai Bank, Limited(currently MUFG Bank,
Ltd.)
Oct. 2008 Joined theCompany
Jan. 2009 General
Manager of Corporate
Planning Dept.
June 2010 Managing
Director and General
Manager of Corporate
Planning Dept.
June 2012 President &CEO

Kazuhiko Kimura Kazuhisa Hayashida

ESG Management

Nobuya Hideshima

ESG Management Environment

Shigeki Miyachi

ESG Management Society

Name

ESG Management GovernanceDirectors

Executive Officers
Senior Executive Officer
Senior Executive Officer
Senior Executive Officer
Executive Officer
Executive Officer
Executive Officer

47

Nippon Thompson Co., Ltd. Integrated Report 2022

Yoshinari Takanashi
Takahiro Nakano
Kenji Yokoyama
Yasushi Nakajima
Tadayoshi Ariga
Shuichi Tezuka

Overall Manager of Central Japan Regional Office
General Manager of Sales & Marketing Administration Dept.
General Manager of Production Administration Dept.
President of Nippon DIC Co., Ltd.
Chairman of UBC (Shanghai) Precision Bearing Manufacturing Co., Ltd.
General Manager of Eastern Japan Regional Office

Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Hiroaki Tago
Satoshi Sato
Toyohisa Ishihara
Mikihito Hosono
Atsushi Tsuchimochi
Hiroyasu Fukumasu

General Manager of Overseas Sales Dept. I
General Manager of Production Procurement Dept.
General Manager of Production Engineering Dept.
General Manager of Corporate Planning Dept.
President of IKO Thompson Vietnam Co., LTD.
General Manager of Overseas Sales Dept. II

Nippon Thompson Co., Ltd. Integrated Report 2022

48

Risk Management

Information Security

The Group provides effective responses to risks that could

management in order to fulfill our social responsibility to

impede business as an important management issue.

our customers, business partners, shareholders, local

We also secure the trust of society as we promote risk

communities, employees, and all other stakeholders.

Risk Management Systemappear.
The Risk Management Committee meets semiannually,

the Company has established information security
management regulations, and we are developing andoperating an information security management system.

Response
instruction

ReportInternal Audit Dept.

the Basic Policy on Information Security, for establishing

Officer: Koji Shimomura, Managing Director), consisting of

information security management, and we thoroughly

executive directors including the president and CEO andeducate and inform directors, employees, and others

full-time Audit & Supervisory Board member, oversees

about the need for continuous improvement and thethe entire organization and correctly manages information

importance of meeting legal and regulatory requirements.

security.

Response department (each jurisdiction)
Response organization (committee)
Audit/
Assessment
Monitoring andguidance

The Chief Information Security Officer has established

Information Security Committee (Chief Information Security

ReportCompliance
Basic Approach
Recognizing the importance of compliance, the Groupof conduct for directors and employees, etc. to comply

in principle, and receives reports on the risk items identified

has established and is operating a code of conduct andwith laws, regulations, the articles of incorporation, social

as a result of annual risk assessments from departmentscompliance management regulations as the standards

norms, and others, and to fulfill our social responsibilities.

Subsidiaries and affiliates

and organizations, then makes important decisions on how

Compliance Promotion Systembest to manage those risks. The contents of deliberations
are reported to the Board of Directors.

Disaster Risk Response: BCP Initiatives

The Compliance Committee (Chairperson: Koji

and employees, etc. of the code of conduct and otherShimomura, Managing Director), consisting of executive

internal regulations. As well, the Company has establisheddirectors including the president and CEO and full-timeand is operating an internal reporting desk. The Internal

Audit & Supervisory Board member, oversees the entire

Audit Department audits whether the compliance systemorganization to thoroughly educate and inform directors

is functioning effectively.

Antibribery and Anticorruption Initiatives

We have formulated business continuity basic regulations

confirmation system for employees, etc., the Company isfor the safety of our employees, etc. as well as to protect

building a system to prepare for disasters, for example, by

The Group’s Compliance Handbook clearly states theassets and to maintain and quickly resume important

conducting periodic safety response drills.

prohibition of bribery and other forms of corruption.

In the self-inspections conducted in FY2022, based on

In addition, based on our compliance management

compliance management regulations, no violations were

COVID-19, we continued production and maintained

regulations, self-inspections are conducted twice a year

reported, and the same was true for the audits conducteddamage and recovery in the event of a disaster, and are

our product supply system by strictly implementing

at all departments, and ongoing education is provided

by the Internal Audit Department.

strengthening our systems in the event of a disaster.

countermeasures to prevent the spread of infections at

through new employee training, job grade-based training,

In addition to disaster drills, a safety confirmation

domestic and overseas production sites, including holding

Internal Reporting Systemsystem has been introduced to quickly and efficiently

a COVID-19 response meeting that includes department

gauge the safety and circumstances of employees inmanagers, as well as the President and CEO, mainly tothe event of a disaster or emergency, such as a major

formulate and discuss policies for dealing with COVID-19.

earthquake. The safety information obtained through thisWe will continue to consider other measures to quickly andsystem can be used to implement our BCP in emergency

effectively reduce risks.

business operations. We also formulated and a business
continuity plan (BCP) primarily for preparedness forsituations. To improve the effectiveness of the safety

ESG Management Environment

Risk Management Committee(Chairperson: Koji Shimomura, Managing Director)

determine a policy for dealing with any risks identified
through control activities as well as any new risks thatfacilities that handle this information). Accordingly,

sophisticated cyberattacks.

ESG Management Society

and internal audits. In addition, the Company will quickly

leaks, falsifications, and destruction due to increasingly

Further, in response to the global outbreak of

ESG Management Governancedepartment implements controls through risk inspections(information and the systems, equipment, media, andand during other opportunities.

The Group has established a hotline, or whistleblowing

mistreatment of whistleblowers. Any conduct in violation

system, as a contact point for uncovering potentially illegalof laws and regulations is subject to disciplinary action as

or inappropriate acts, etc., with the aim of detecting andoutlined in our internal rules.

correcting these acts at an early stage. We have one
internal and one external reporting desk.
Anonymous reporting is also possible, and theCompany faithfully implements regulations that govern

Data

implemented throughout the organization, while every

manage the security of the Group’s information assets

externally, presents growing threats, such as information

The Group has built a system to ensure that theReportManaging Director), composed of executive directors

policies and confirms that risk reduction is thoroughly

convenience of handling information, both internally andInformation Security Management System
Board of Directors

Management Committee (Chairperson: Koji Shimomura,

Supervisory Board member, formulates risk management

related to information management and to effectively

Given this digital environment, we consider it anon our risk management guidelines, since the realization

including the President and CEO and full-time Audit &responsibility to accurately identify and address risks

and network technology are evolving rapidly, theimportant management issue in fulfilling our social

The Group has built a risk management system basedof risks could impact corporate management. The Risk

While recent developments in information processing

ESG Management

Basic Approach

Basic Approach

Risk Management System

Nippon Thompson’s Value Creation

ESG Management: Governance

In FY2022, we received two reports, one to the internalreporting desk and one to the external reporting desk.
Both reports were handled in cooperation with the related
departments fairly and faithfully.

compliance, including confidentiality and prohibiting the49

Nippon Thompson Co., Ltd. Integrated Report 2022

Nippon Thompson Co., Ltd. Integrated Report 2022

50

Data
Key Financial and Nonfinancial Data for the Past 11 Years
FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Nippon Thompson’s Value Creation

FY2012(Unit: millions of yen)

FY2022

Profit and Loss
Net sales

42,50535,962

39,25944,972

43,664

44,13055,22857,57047,45744,34262,284

Operating profit

3,053

1,185

(251)

3,877

3,018

1,145

2,649

4,883

1,341

(559)

5,898

EBITDA

6,193

4,726

3,654

7,504

5,144

3,625

5,657

8,748

5,202

4,211

11,534

Profit attributable to owners of parent

2,827

(124)

568

2,966

1,569

(291)

1,678

3,718

(185)

215

4,134

Total assets1

92,99084,34386,891

93,411

89,197

99,627

98,493

101,468

98,118100,946

107,078

Net assets

53,34953,16756,121

61,09958,05658,60559,66660,19557,43959,42563,974
ESG Management

Financial Position

Cash Flows
Cash flows from operating activities(2,385)

(352)

9,051

7,690

2,521

4,981

6,043

5,158

(2,497)

5,658

10,265

Cash flows from investing activities(9,046)(2,768)(1,595)(2,443)(4,908)(5,376)(1,379)(5,061)(6,188)(3,007)(2,100)Free cash flows(11,432)(3,121)

7,456

5,247

(2,386)

(394)

4,663

96

(8,686)

2,650

8,165

4,340

(1,561)(3,562)(1,856)(1,944)

7,126(6,696)(1,047)

4,618

(412)

(6,442)

Capital expenditures

8,501

2,028

2,127

2,427

6,150

2,627

2,535

5,248

5,455

2,752

2,019

Depreciation and amortization

3,090

3,048

2,636

2,584

2,272

2,596

3,094

3,297

3,800

3,833

3,885

818

683

785

778

903

990

1,036

1,148

1,305

1,266

1,324

Earnings per share (EPS) (yen)38.50(1.70)

7.82

40.71

21.64

(4.04)

23.35

51.95

(2.59)

3.02

58.27

Dividend per share (yen)

13.0

9.0

10.0

11.0

13.0

13.0

13.0

15.0

12.5

8.0

13.0

7.2

3.3

(0.6)

8.6

6.9

2.6

4.8

8.5

2.8

(1.3)

9.5

Cash flows from financing activities

Research and development expenses

ESG Management Environment

Capital Expenditures, etc.

Per Share Indicators

Operating profit to net sales (%)
ROA (return on assets) (%)

3.0

(0.1)

0.7

3.2

1.8

(0.3)

1.7

3.7

(0.2)

0.2

3.9

ROE (return on equity) (%)

5.4

(0.2)

1.0

5.1

2.6

(0.5)

2.9

6.2

(0.3)

0.4

6.7

ROIC (return on invested capital) (%)

2.4

1.0

(0.2)

3.1

2.7

0.9

2.3

4.2

1.1

(0.4)

4.7

Equity ratio (%)

57.4

63.0

64.6

65.4

65.0

58.4

60.1

59.1

58.4

58.7

59.6

Dividend payout ratio (%)

33.8

－

127.9

27.0

60.1

－

55.7

28.9

－

264.9

22.3

Inventory turnover (Months)

8.8

11.6

9.8

7.7

7.7

7.4

5.6

5.8

8.0

8.8

6.3

1,251

1,275

1,451

1,750

1,750

1,919

2,232

2,448

2,232

2,456

2,688

ESG Management Society

Financial Indicators

Number of employees (people)
Ratio of female employees (%)2

6.4

6.8

7.0

7.8

8.6

9.7

11.7

11.3

11.5

11.9

12.3

Greenhouse gas emissions (t-CO2)

18,442

17,356

16,993

26,30927,42927,24930,84835,762

32,62525,89735,563

Electricity consumption (MWh)44,08630,08633,382

41,74644,071

44,02350,37458,60654,25844,452

63,847

Water consumption (1,000 m3)

128

110

104

124

142

134

146

165

145

134

162

3,899

2,578

3,067

3,437

2,952

2,972

3,114

3,507

3,015

2,135

2,995

143

130

91

113

94

27

26

216

206

12

32

Waste emissions (tonnes)
Amount of PRTR substances emissions/transfers (kg)

ESG Management GovernanceNonfinancial Data

* 1 Guided by the Partial Amendments to Accounting Standard for Tax Effect Accounting, the consolidated balance sheets as of the end of FY2018 were reclassified.
* 2 Percentage of female employees of Nippon Thompson on a nonconsolidated basis, as of January 1 for each fiscal year

(Millions of yen)
6,000

Operating profit
Operating profit to net sales

4,000

ROE (Return on Equity)
(%)

(%)

10

8.0

8

6.0

6

2

Electricity Consumption

(Yen)
15

(t-CO2)40,000(MWh)80,00030,00060,00020,00040,00010,00020,000

0

0

4.0

9

2.0

6

0

0

0.0

3

-1,000

-2

-2.0

0

2018

2019

2020

2021

2022

FY

In FY2022, operating profit was 5,898 million yen, andthe operating profit margin improved by 10.8 percentage
points from the previous fiscal year to 9.5%, partly due
to increased earnings, higher production, and the effectof the yen’s depreciation on exchange rates.

51

Greenhouse Gas Emissions

12

4

2,000

Dividend per Share

Nippon Thompson Co., Ltd. Integrated Report 2022

2018

2019

2020

2021

2022

ROE improved by 6.3 percentage points fromthe previous fiscal year to 6.7%, due to a 40.5%
increase in net sales, higher production, and theeffect of the yen’s depreciation.

FY

2018

2019

2020

2021

2022

FY

The Company’s basic policy is to maintain stabledividends. In FY2022, we increased both earnings andprofits, then issued a dividend of 13 yen per share, anincrease of 5 yen from the previous fiscal year.

2018

2019

2020

2021

2022

In FY2021, production was adjusted due to theimpact of the spread of COVID-19 and otherfactors, resulting in a temporary decrease.
However, in FY2022, production began to increase,resulting in 35,563 t-CO2 of emissions.

FY

Number of Employees and Ratio of Female Employees(Number of people)
2,750
Number of employees(%)
13

Ratio of female employees
2,500

12

2,250

11

2,000

10

0
2018

2019

2020

2021

2022

Similar to GHG emissions, energy consumption
in FY2022 was 63,847 MWh due to increased
production in response to recovering demand.

FY

2018

2019

2020

2021

2022

Data

Operating Profit / Operating Profit to Net Sales

0

FY

We have continued to recruit a set percentage of female
employees by holding company information sessions for
women and other well thought-out recruitment activities,
resulting in a 0.4 point increase in the percentage of female
employees compared with the previous year.

Nippon Thompson Co., Ltd. Integrated Report 2022

52

Data
Company Profile and Stock Information (as of March 31, 2022)
TrademarkNumber of shareholders
Stock exchange listing

100.0

Sales of bearings and other machinecomponents

Nippon Thompson Europe B.V.

The Netherlands

EUR 9,000 thousand

100.0

Sales of bearings and other machine parts

IKO-Thompson (Shanghai) Ltd.

China

RMB 150 million

100.0

Sales of bearings and other machinecomponents

UBC Precision Bearing ManufacturingCo., Ltd.

China

USD 8,000 thousand

100.0

Manufacture and sales of bearings andother products

IKO Thompson Asia Co., Ltd.

Thailand

THB 10,000 thousand

100.0

Sales of bearings and other machine parts

JPY 90 million

100.0

Sales of bearings and other machinecomponents

February 10, 1950

Corporate headquarters 19-19 Takanawa 2-chome Minato-ku, Tokyo
108-8586, Japan

Prime Market, Tokyo
Stock Exchange

USD 6,000 thousand

IKO International, Inc.

Established

11,147 shareholders

USA

Nippon Thompson Co., Ltd.

Representative

Shigeki Miyachi, President and CEO

Capital

9,533,170,390 (Yen)

Number of employees

2,688 (Group total) 1,010 (Nonconsolidated)

Major Shareholders and Number of Shares Owned
Number ofshares owned(thousand shares)

Holdings ratio(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

7,832

10.80

Custody Bank of Japan, Ltd. (Trust Account)

7,600

10.48

Nippon Thompson Business Partners Shareholders’
Association

5,325

7.34

Nippon Life Insurance Company

4,262

5.87

Nachi-Fujikoshi Corp.

2,008

2.76

Nippon Thompson Employees Shareholders’ Association

1,713

2.36

MUFG Bank, Ltd.

1,612

2.22

DFA Intl Small Cap Value Portfolio

1,366

1.88

CEPLUX—The Independent UCITs Platform 2

1,350

1.86

Name of shareholder

Trust & Custody Services Bank, Ltd., as trustee forMizuho Bank, Ltd., Retirement Benefit Trust Account reentrusted by Custody Bank of Japan, Ltd.

1,305

Securities:
1,334 thousand shares(1.8%)

Treasury shares:
989 thousand shares(1.3%)

Overseas shareholders:
12,766 thousand shares(17.4%)

Individuals and others:
18,556 thousand shares(25.3%)

Nagoya City,
Aichi Prefecture

Nippon DIC Co., Ltd.

Vietnam

USD 25,000 thousand

100.0

Manufacture and sales of bearings andother products

UBC (Suzhou) Bearing Co., Ltd.

China

RMB 90,900 thousand

100.0(80.3)

Manufacture and sales of bearings andother products

Note: Figures in parentheses in the voting rights ownership ratio are indirect ownership ratios and are included in the total ratio.

Group Network
IKO Thompson Korea Co., Ltd.

▶Overseas
Nippon Thompson Europe B.V.

Other domestic
corporations:
9,781 thousand shares(13.3%)The Netherlands

Financial institutions:
30,072 thousand shares(40.9%)

CanadaU.K.
FranceIllinois

Notes: 1. The Company holds 989,733 shares (1.34%) of treasury shares.

California(Los Angeles)

2. Holdings ratio is calculated after deducting treasury shares (989,733 shares).

New Jersey

FY2021

IKO Thompson Vietnam Co., Ltd.

Nippon Thompson stock price142.6%

88.8%

67.7%

117.4%

99.6%

Industry weighted stock price average (machinery)110.0%

91.8%

79.2%

124.6%

115.2%

Stock Price and Trading Volume

Vietnam

Shenyang
Qingdao
Changshu

ShanghaiNingboShenzhen
Guangzhou
Thailand

Sales subsidiary headquarters

FY2022Beijing
Xian

IKO Brasil Serviços Empresariais Eireli

Sales subsidiaries branch offices

IKO Thompson Asia Co., Ltd.

BrazilSales subsidiaries sales offices
Sales subsidiaries offices
Production subsidiaries

ESG Management Governance

FY2020UBC (Suzhou) Bearing Co., Ltd.

(Regensburg: Germany)

Wuhan

IKO International, Inc.

Total Shareholder Return (TSR)

Germany(Düsseldorf)

Spain

Georgia

Texas

South Korea

IKO-Thompson (Shanghai) Ltd.
UBC Precision Bearing Manufacturing Co., Ltd.

IKO Thompson Bearings Canada, Inc.

1.79

FY2019Principal business

IKO Thompson Vietnam Co., Ltd.

(Silicon Valley: California)

FY2018

Nippon Thompson’s Value Creation

72,511,692 shares(excluding 989,733 treasury shares)

Total number of outstanding shares

Voting rights
ownership
ratio (%)

ESG Management

Trade name

Capital

ESG Management Environment

291,000,000 shares

Location

Name of company

ESG Management Society

Total number of authorized shares

Major Group Companies▶JapanTrading volume(thousand shares)

Share price
(yen)
1,200

1,000

Corporate headquarters

TohokuSales offices
15,000600

Nagaoka

Branch offices
Production sites

Kanazawa
MatsumotoSales subsidiaries
10,000Central Regional
Shiga

400

5,000

200

Akashi

Hiroshima

0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Nippon Thompson Co., Ltd. Integrated Report 2022

Headquarters
Eastern Regional
Kamakura

Minami-Kanto
Hamamatsu
Nishi-Tokyo
Nippon DIC Co., Ltd.
(Aichi: Nagoya)

Western Regional

FY

Kumamoto

53

Kita-Kanto
Utsunomiya
HitachiToyotaKyushu
0

Gifu

Data

800

20,000

Nippon Thompson Co., Ltd. Integrated Report 202254

19-19 Takanawa 2-chome Minato-ku, Tokyo
108-8586, Japan
https://www.ikont.co.jp/eg/
December 2022