Release of business results for the March 2025 term

May 12, 2025

Company name: NIPPON THOMPSON CO., LTD.

Listing: Tokyo Stock Exchange Securities code: 6480

URL: https://www.ikont.co.jp/eg/ Representative: Mikihito Hosono, President & COO

Inquiries: Takanori Kojima, General Manager of Accounting Department Telephone: +81-3-3448-5824

Scheduled date of annual general meeting of shareholders: June 27, 2025 Scheduled date to commence dividend payments: June 30, 2025 Scheduled date to file annual securities report: June 27, 2025 Preparation of supplementary material on financial results: Yes

Holding of financial results briefing: Yes (for securities analysts and institutional investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2025 (from April 1, 2024 to March 31, 2025)
   1. Consolidated operating results (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 54,384 55,048	% (1.2) (19.4)	Millions of yen 1,592 3,164	% (49.7) (66.6)	Millions of yen 1,841 4,525	% (59.3) (56.8)	Millions of yen 978 2,674	% (63.4) (64.2)

      Note: Comprehensive income	For the fiscal year ended March 31, 2025:	¥715 million	[(90.4)%]
      	For the fiscal year ended March 31, 2024:	¥7,436 million	[(15.1)%]

      	Basic earnings per share	Diluted earnings per share	Return on equity	Ratio of ordinary profit to total assets	Ratio of operating profit to net sales
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	14.18	14.14	1.3	1.5	2.9
      March 31, 2024	37.82	37.71	3.6	3.9	5.7

      Reference: Share of profit (loss) of entities accounted for using equity method For the fiscal year ended March 31, 2025: ¥- million

      For the fiscal year ended March 31, 2024: ¥- million

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen 120,666 119,187	Millions of yen 75,631 76,164	%	Yen
      March 31, 2025			62.6	1,092.64
      March 31, 2024			63.8	1,104.33

      Reference: Equity

      As of March 31, 2025: ¥75,532 million

      As of March 31, 2024: ¥76,049 million

   3. Consolidated cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 6,449 (2,488)	Millions of yen (3,435) (5,304)	Millions of yen 912 7,566	Millions of yen 22,678 18,980

2. Cash dividends

   	Annual dividends per share					Total cash dividends (Total)	Payout ratio (Consolidated)	Ratio of dividends to net assets (Consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen - -	Yen	Yen - -	Yen	Yen	Millions of yen 1,358 1,338	%	%
   Fiscal year ended March 31, 2024		9.50		9.50	19.00		50.2	1.8
   Fiscal year ended March 31, 2025		9.50		9.50	19.00		134.0	1.7
   Fiscal year ending March 31, 2026 (Forecast)	-	13.00	-	13.00	26.00		120.0

3. Consolidated financial result forecasts for the fiscal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

1. Significant changes in the scope of consolidation during the period: None

2. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

3. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares)

      As of March 31, 2025	73,501,425 shares
      As of March 31, 2024	73,501,425 shares

   2. Number of treasury shares at the end of the period

      As of March 31, 2025	4,372,794 shares
      As of March 31, 2024	4,636,377 shares

   3. Average number of shares outstanding during the period

Note: The number of treasury shares at the end of the period includes Nippon Thompson shares held by the share-issuing trust account for executives and by the employee stock ownership plan (ESOP) trust account (1,292,900 shares as of March 31, 2025 and 1,527,800 shares as of March 31, 2024). In the calculation of the average number of shares outstanding during the period, Nippon Thompson shares held by the share-issuing trust account for executives and the ESOP trust account are included in excluded treasury stock (1,399,158 shares as of March 31, 2025 and 1,331,416 shares as of March 31, 2024).

1. Non-consolidated operating results (Percentages indicate year-on-year changes.)

   	Net sales		Operating profit		Ordinary profit		Profit
   Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 42,593 43,857	% (2.9) (25.4)	Millions of yen (625) 1,839	% - (79.5)	Millions of yen 101 3,133	% (96.8) (69.8)	Millions of yen (820) 2,040	% - (72.2)

   	Basic earnings per share	Diluted earnings per share
   Fiscal year ended	Yen	Yen
   March 31, 2025	(11.89)	-
   March 31, 2024	28.85	28.77

2. Non-consolidated financial position

Reference: Equity

As of March 31, 2025: ¥56,164 million

As of March 31, 2024: ¥58,455 million

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts and other special matters

Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the "Group") as of the date of this document, May 12, 2025. Accordingly, for a wide variety of reasons, there remains the possibility that actual performance results may differ from projections. For performance forecasts, please refer to "1. Qualitative Information on Financial Results (4) Outlook" on page 3.

1. Qualitative Information on Financial Results

(1) Explanation of Operating Results

During the fiscal year ended March 31, 2025, the outlook for the global economy remained uncertain due to factors such as sharp exchange rate fluctuations resulting from shifts in monetary policy across countries, heightened geopolitical risks caused by escalating tensions in the Middle East, and impacts of protectionist policies adopted by the United States.

Against this backdrop, in this fiscal year the Group launched the three-year "IKO Medium-term Business Plan 2026 Connect for Growth -The Future of Innovation, Connected by IKO-." Based on our basic policy of focused enhancement in areas of strength and rebuilding the global business structure, we have made progress on measures to tackle our key challenges aimed at achieving growth in global markets.

From a sales perspective, the Group held private shows and trade exhibitions in Japan and overseas to deepen business relationships with existing customers and cultivate new markets and customers, while also focusing on identifying new business opportunities for our strategic products, such as the IKO Mechatronics Unit, for which demand growth is anticipated due to labor shortages.

In terms of product development, we developed and launched the Parallel Drive Stage, a mechatronics product featuring a low-profile design through the adoption of our unique actuator mechanism with two axes positioned in parallel. In addition, we expanded the variations of our Linear Motor Table LT series lineup to include those featuring high thrust, long stroke, and absolute linear encoder specifications. These advances have strengthened our lineup of high-value products to better meet diverse customer needs.

From a production standpoint, we proactively promoted initiatives for improving on-site conditions at our production bases in and outside Japan with a focus on streamlining and labor-saving, in pursuit of ideal manufacturing sites, and strengthened our global supply system.

Turning to the Group's operational results, net sales decreased from the previous fiscal year, but net orders remained steady. In Japan, net sales increased as demand rose for electronics-related devices such as practical equipment and electrical machinery, despite a slowdown in demand for general industrial machinery and machine tools such as precision machinery. In North America, demand for electronics-related devices such as semiconductor manufacturing equipment and for general industrial machinery such as robots increased, leading to higher net sales. In Europe, demand for general industrial machinery, including various medical equipment, and commercial application products slowed down. This led to a decrease in net sales. In China, net sales remained nearly flat due to a moderate economic recovery mainly driven by economic stimulus measures, despite continued sluggishness in real estate investment and personal consumption. Other regions, comprising mainly Singapore, Malaysia, and India, also saw declines in net sales.

As a result, consolidated net sales for the fiscal year ended March 31, 2025 totaled ¥54,384 million, down 1.2% year on year. On the earnings front, operating profit decreased by 49.7% year on year to ¥1,592 million due mainly to a decrease in net sales and a decrease in production volume. Ordinary profit came to ¥1,841 million, down by 59.3% year on year. Profit attributable to owners of parent decreased by 63.4% year on year to ¥978 million.

In the fiscal year ended March 31, 2025, net production of Needle Roller Bearings and Linear Motion Rolling Guides was ¥46,136 million based on average sales price, down 8.2% year on year. And, net orders of Needle Roller Bearings, Liner Motion Rolling Guides and Machine Components were up 24.4% year on year to

¥55,867 million.

Because the Group manufactures and sells Needle Roller Bearings, Linear Motion Rolling Guides and Machine Components on an integrated basis, disclosure of segment information has been omitted. Sales of Needle Roller Bearings and Linear Motion Rolling Guides totaled ¥47,966 million, down 1.0% year on year. Sales of Machine Components decreased 2.5% year on year to ¥6,417 million.

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