Financial Results Briefing Fiscal Year ending March 31, 2024 May 16, 2024 NIPPON  THOMPSON  CO., LTD. 1 . Financial Summary for Fiscal Year ending March 31, 2024 2 . Financial Forecast for Fiscal Year ending March 31, 2025 3 . Medium-term Business Plan 2026 【Supplementary Information】Financial Data ote 1: The forecast of operations results in this summary is prepared based on the earnings preannouncement released on May 13, 2024. Therefore the reader should be aware that actual results may be different from any future results expressed herein due to various factors. Amounts in these graphs and tables are rounded down to the million of Yen. 8: Percentages in these graphs and tables are rounded off the fractions to two decimal pla 1 Financial Summary for Fiscal Year ending March 31, 2024んNet sales decreased by 19.4% YoY as market conditions in China remained sluggish and the adjustment phase of demand continued, including for electronics-related devices.んDespite the effects of yen depreciation, operating profit decreased by 66.6% YoY, mainly due to the impact of reduced revenue and production. A Net profit for the period decreased by 64.2% YoY, while dividends were maintained. Share buybacks were also implemented, and shareholder returns strengthened. A Orders received decreased by 27.5% YoY as demand was slow to recover both in Japan and overseas However, orders received recovered in the fourth quarter, increasing by 12.0% QoQ.
IKO (Millions of yen) Net Sales (Millions of yen) Operating Income /Operating margin
TKP
■【Bearings,etc.】
YoY -13,067million JPY(-21.2%) • Net sales of needle roller bearings decreased for electronics- related devices, including commercial products and electrical machinery. • Net sales of linear motion rolling guides decreased for electronics-related devices, including commercial products and semiconductor production equipment. 【Machine components】 YoY      -144million JPY(   -2.2%) • Despite strong sales for precision machinery, demand decreased for commercial products and electronics-related devices.
(Millions of yen) FY2023
【Japan】
YoY   - 5,422 million JPY(   -16.9%) • Demand has slowed mainly for commercial products and electronics-related devices, including semiconductor production equipment, mounting machines, and electrical machinery.
【Americas】
YoY -687 million JPY(    -7.6%) • Demand has slowed for electronics-related devices and general industrial machinery, including precision machinery and various types of medical equipment.
【Europe】
YoY +175 million JPY(   +2.6%) • Although demand for machine tools stagnated, net sales increased due in part to solid demand for general industrial machinery and the effects of yen depreciation.
【China】
YoY   - 4,763 million JPY(   -39.9%) • Net sales decreased due to such factors as stagnation in the real estate market and anemic domestic and overseas demand. 【Others】 YoY   - 2,514 million JPY(   -29.6%) · Net sales decreased mainly in Singapore, Taiwan, and South Korea. FY2024 7
(Millions of yen) 68,260
■【Electronics】
YoY   - 3,544 million JPY(   -29.6%) • Demand decreased overall, including for semiconductor production equipment. 【Machine Tools】 YoY -562 million JPY(  -16.3%) • Demand associated with capital expenditure decreased in the domestic market and Europe.
【Transportation】
YoY
+166 million JPY(   +7.4%) • Demand increased mainly for automobile manufacturing equipment and for railway cars. 【Other Machinery】 -182 million JPY(     -1.2%) YoY • Demand decreased mainly for robots and medical equipment. 【Distributors】 YoY   - 9,088 million JPY(   -25.6%) • Demand associated with capital expenditure in Japan and overseas decreased overall.
FY2024

IKO A Operating profit decreased 6,295 million yen YoY. Effect of yen depreciation was +661 million yen.んんImpact of real decrease in sales was -5,238 million yen, deterioration in cost of sales ratio was -2,220 million yen. Due to a decrease in logistics expenses accompanying a decrease in sales, selling, general, and administrative expenses was +502 million yen.
A Inventories increased by 3,620 million yen from the end of the previous fiscal year mainly due to an increase in inventories in preparation for demand recovery and an increase in inventories at overseas subsidiaries due to yen depreciation. > Tangible fixed assets increased by 1,472 million yen from the end of the previous fiscal year due to capacity expansion investments.
A Operating cash flow was -2,488 million yen mainly due to a shortening of payment terms despite recording net profit for the period. A Financial cash flow was +7,566 million yen mainly due to execution of borrowing despite the acquisition of treasury shares. Capital expenditure was 4,857 million yen as capacity expansion progressed for priority items.ん
Financial Forecast for Fiscal Year ending March 31, 2025
A As the adjustment phase continues until the first half, a modest recovery in demand is expected from the second half of the fiscal year, mainly for the electronics industry.んNet sales are expected to increase by 5.4% YoY to 58,000 million yen, and operating profit is expected to increase by 35.9% YoY to 4,300 million yen.
IKOんOperating income is expected to be 4,300 million yen, up 1,135 million yen from the previous period. Effect of sales increase is +967 million yen, improvement in cost of sales ratio is forecast to be +633 million yen.んんSelling and general administrative expenses will be -465 million yen due to increase in personnel expenses and logistics costs accompanying an increase in sales. (Millions of yen)
for Growth - The Future of Innovation, Connected by IKO - Innovation, Know-how & Originality
(May 16, 2024 version)

→Management Philosophy -IKO VISION 2030  ・ →Review of the Previous Medium-term Business Plan ・ ・ P4 →Medium-term Business Plan 2026 “Positioning” ・ “Basic Policy”・ “Financial Targets” ・ “Growth Strategy” ・ “Capital Allocation for Growth” →Approach to Human Capital →Environmental Initiatives →Sustainable Management 1 Management Philosophy

A Company Centered on Technology Development that Contributes to Society
Nippon Thompson is the enterprise trusted and relied upon by customers for the manufacturing and sales of important machine components including, bearings and related equipment.  We aim to be a technology-based company, that draws on our technological capabilities and passion to solve our customers' issues in order to evolve into a more visible global company. IKO VISION 2030
Management Philosophy A Company Centered on Technology Development that Contributes to Society Collaborating with customers primarily and co-creating value as a technology development-based company – co-creating a sustainable future – IKO VISION 2030 “Three Challenges of Growth Strategies” to Achieve Our Long-Term Vision   �Developing new products using core technologies ●Strengthening collaboration with partner companies
m Review of the Previous Medium-term Business Plan Aiming for a stronger corporate structure resilient to fluctuations Financial Targets 3-year average from FY 2022 to FY 2024 Initial targets Operating 4.5 billion yen or above V profit ROE 5% or above Targets after revision 7 billion yen or above Upward revision 7% or above Basic Policy
Results
Although various measures were promoted, the target for operating profit was not achieved due to sudden changes to the business environment in the final fiscal year. d
"Focused Investment in Areas of Strength" and "Upfront Investment in Foundation for the Future" Aiming for a highly profitable organization Achieved record net sales and second highest operating profit ever (net sales of 68.2 billion yen and operating profit of 9.4 billion yen), and evolved into a highly profitable organization IKO VISION 2030 Capacity expansion in Vietnam / Making UBC a subsidiary Invested in production bases and China, and began preparing a structure to realize 100 billion yen in net sales 2nd Medium-Term Business Plan (2017) Shift to "Offensive Management" 4th Medium-Term Business Plan (2023) Establishing “Value Enhancement & Value Co-Creation" 3rd Medium-Term Business Plan (2020) Establishing a “Highly Profitable Organization" Heightening profit awareness Exiting from unprofitable projects and realizing transformation into a highly profitable organization Point ● Boldly investing in strong products, markets, and regions ● Upfront investment of capital in businesses that will be the foundation for the future Basic Policy for Medium-Term Business Plan 2025 Rebuilding the “Global Business Structure" Growth 1st Medium-Term Business Plan (2014) Formulating Our Vision, Direction, and Long-Term Vision for the Company Formulating our long-term vision Set financial targets of 100 billion yen in net sales and 15 billion yen in operating profit Medium-term Business Plan 2026 "Basic Policy" Enhancing “IKO’s Strengths” and rapidly securing “Growth Opportunities” A critical 3-year period to achieve “IKO VISION 2030” and practically implement growth strategies Basic Policy for Medium-Term Business Plan 2026 Focused Enhancement in “Areas of Strength” Rebuilding the “Global Business Structure" Profitability and efficiency Growth Capital is invested in the "corporate strength" that forms the foundation. System capable of swiftly responding to high variety
production Investment in growth areas Improve of capital efficiency Diversity of human resources and connecting across functions e Future of Innovation, Connected by IKO - novation, Know-how & Originality Profitability and efficiency 6 Medium-term Business Plan 2026 "Financial Targets" "High Growth" + "Stable Profits" on average over the 3-year period: leading to HKO VISION 2030 Point We aim to exceed the “operating profit” and an “ROE” achieved in FY 2023, when we
IKO VISION 2030
: 10% or above ■ ROE ■ Operating profit

Recognizing the external environment
[Economic and Social Situation] • Increasing population in emerging countries and decreasing working population in developed countries • Increasing geopolitical risks • Sharply increasing labor costs associated with inflation in countries around the world
[Industry and Technology]
• Increasing demand for automation due to labor shortages • Technological innovation and expansion for industrial robots and medical equipment due to AI utilization and other factors [Sustain ability] Suppressing rising temperatures through realization of a decarbonized society • Accelerating initiatives for realizing a sustainable society Change in net sales (including targets) and growth industries Point growth areas (such as semiconductor production equipment, industrial robots, and medical equipment) and expand sales to highly profitable markets focusing on aftermarket sales. a
9
10
Point Medium-Term Business Plan 2023 Medium-Term Business  Plan 2026 Billions of yen Together with aiming to increase profitability, achieve sustainable growth, and improve capital efficiency, we will also implement initiatives to strengthen shareholder returns, and aim to exceed a price-to-book ratio of 1.0 as soon as possible.
Approach to Human Capital
“Medium-Term Business Plan 2026 Human resources policy" Orienting toward profitability, efficiency, and growth for “IKO VISION 2030," we will develop human resources who will pursue “IKO’s Strengths” and “Global Business Structure,” and strengthen organizational functions and capability. Focused Enhancement in “Areas of Strength” Profitability and efficiency Growth Rebuilding the “Global Business Structure" Initiatives for 2026 Targets to achieve by 2030 ) Training and production of “next-generation leaders” Development of human resources that can maximize their individual potential and production of many leaders on a global scale. Strengthening functions for human resources development Implementing talent management (introduction of systems) Maximizing organizational functions and capability Realization of the right people in the right roles based on a balanced portfolio of human resources that can maximize the functions and capabilities of each organization with a small number of elite personnel. Measures to help diverse human resources excel Measures to increase engagement
Connecting human resources
A personnel organization where a “corporate culture that recognizes each other's value regardless of nationality, gender, or age" is cultivated, and where all employees feel their work is worthwhile and pursue innovation.
disnovic
Scope3 12 Sustainable Management Enhancing sustainable corporate value by circulating "economic value" and "social value"
Group Priorities
TKO
1.Promote corporate activities to realize a prosperous global environment 2.Contribute to technological innovation by leveraging core technologies з.Contribute to social development by providing products that society needs 4.Realization of healthy, safe, and secure lives for people 5.Realization of a society in which a diverse workforce can play an active role and are rewarded for their work 6.Continuous improvement of compliance governance 13 【Supplementary Information】 Financial Data
Contact us for more information about IR Nippon Thompson Co., Ltd.   Corporate Planning Dept. TEL : +81(0)3-3448-5868 E-mail : ir_information@ikonet.co.jp HP : https://www.ikont.co.jp/eg/ Although this document contains business forecasts etc., it was developed based on certain conditions, such as the current business environment and business policies. Please be aware that these forecasts may differ from the actual results due to these variable elements.