Release of first quarter business results for the March 2026 term

August 7, 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 to commence dividend payments: - Preparation of supplementary material on financial results: Yes Holding of financial results briefing: None

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

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Net sales		Operating profit		Ordinary profit		Profit attributable to owners of parent
      Three months ended June 30, 2025 June 30, 2024	Millions of yen 14,938 13,006	% 14.9 (10.9)	Millions of yen 731 212	% 243.9 (83.3)	Millions of yen 768 952	% (19.3) (51.2)	Millions of yen 710 (176)	% - -

      Note: Comprehensive income	For the three months ended June 30, 2025:	¥897 million	[(48.5)%]
      	For the three months ended June 30, 2024:	¥1,742 million	[(56.2)%]

      	Basic earnings per share	Diluted earnings per share
      Three months ended	Yen	Yen
      June 30, 2025	10.26	10.24
      June 30, 2024	(2.57)	-

   2. Consolidated financial position

      	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
      As of	Millions of yen 120,523 121,106	Millions of yen 76,321 76,072	%	Yen
      June 30, 2025			63.3	1,101.53
      March 31, 2025			62.7	1,099.01

      Reference: Equity

      As of June 30, 2025: ¥76,241 million

      As of March 31, 2025: ¥75,972 million

      Note: The Company changed its accounting policy beginning with the first quarter of the fiscal year ending March 31, 2026. The figures for the fiscal year ended March 31, 2025 are stated after adjustment is applied retroactively for the change.

2. Cash dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	Yen - -	Yen	Yen -	Yen	Yen
   Fiscal year ended March 31, 2025		9.50		9.50	19.00
   Fiscal year ending March 31, 2026
   Fiscal year ending March 31, 2026 (Forecast)		13.00	-	13.00	26.00

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

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.)

Note 1: Revisions to the financial result forecast most recently announced: None

Note 2: As retroactive adjustments were applied due to changes in accounting policy, the year-on-year percentage change figures are stated in comparison with the figures for the year-earlier period that were retroactively adjusted for the change.

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

2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

   Note: For further details, please refer to "2. Quarterly Consolidated Financial Statements and Principal Notes

3. Notes to Quarterly Consolidated Financial Statements (Accounting Methods Adopted Particularly for the Preparation of Quarterly Consolidated Financial Statements)" on page 7.

1. Changes in accounting principles, changes in accounting estimates, and restatement

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

   2. Changes in accounting policies due to other reasons: Yes

   3. Changes in accounting estimates: None

   4. Restatement: None

      Note: For further details, please refer to "2. Quarterly Consolidated Financial Statements and Principal Notes

      (3) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)" on page 7.

2. Number of issued shares (common shares)

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

      As of June 30, 2025	73,501,425 shares
      As of March 31, 2025	73,501,425 shares

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

      As of June 30, 2025	4,286,752 shares
      As of March 31, 2025	4,372,794 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 (1,242,800 shares as of June 30, 2025 and 1,292,900 shares as of March 31, 2025). 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 (1,256,632 shares as of June 30, 2025 and 1,514,366 shares as of June 30, 2024).

• Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: Yes (voluntary)

• Proper use of earnings forecasts and other special matters

Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the "Group") as of the date of this document, August 7, 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 Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 2.

1. Qualitative Information on Quarterly Financial Results

1. Explanation of Operating Results

   During the three months ended June 30, 2025, the global economy stayed on a moderate recovery path supported by economic policy measures implemented by various countries as well as solid capital investment demand while its outlook was rather uncertain due to U.S. trade policy and other factors.

   Against this backdrop, the Group entered the second year of its "IKO Medium-term Business Plan 2026 Connect for Growth -The Future of Innovation, Connected by IKO-." Based on our policy of aiming to boost profitability and efficiency through focused enhancement in areas of strength while at the same time driving growth by rebuilding the global business structure, we have made progress on measures to tackle our key challenges.

   From a sales perspective, we opened a new sales base, Tsukuba Sales Office, in Tsukuba, Ibaraki Prefecture, Japan, in April 2025 to establish an efficient, community-focused sales system and advance the development of new demand. We also worked to ingrain the IKO brand in the market and cultivate demand through proactive participation in trade exhibitions in Japan and overseas and other initiatives.

   In terms of product development, we launched four new products, including Nano Linear NT100 V, a low cross section, high thrust linear motor table equipped with a newly designed engine, enhancing our lineup of high-value products that contribute to customers' efforts to miniaturize machinery and improve productivity. We also proactively worked on the development of innovative products leveraging open innovation, such as the development of Zipped Dust Cover, which employes a highly durable zipper.

   From a production standpoint, to meet diverse customer needs speedily, we advanced the improvement and optimization of the production function of our production bases in Japan and overseas with the aim of achieving a responsive global supply system.

   Turning to the Group's operational results, net sales increased in Japan as demand rose for electronics-related devices such as practical equipment and semiconductor manufacturing equipment, as well as for machine tools. In North America, net sales increased as demand rose for general industrial machinery, including various medical equipment, and electronics-related devices. In Europe, net sales decreased because of a slowdown in demand for general industrial machinery and electronics-related devices as well as the impact of a strong yen. In China, net sales increased owing to a recovery in domestic demand driven by economic stimulus measures and on the back of revenues earned from large-scale projects. In other regions, net sales increased because of a recovery in demand in some countries such as Singapore, India, South Korea.

   As a result, consolidated net sales for the three months ended June 30, 2025 totaled ¥14,938 million, up 14.9% year on year. On the earnings front, due to some factors such as the absence of the increase in net sales, increase in production volume, and write-down of inventories that were recorded in the corresponding period of the previous fiscal year, operating profit was ¥731 million, up 243.9% year on year, ordinary profit was ¥768 million, down 19.3% year on year, and profit attributable to owners of parent was ¥710 million (compared to loss attributable to owners of parent of ¥176 million in the corresponding period of the previous fiscal year).

   In the three months ended June 30, 2025, net production of Needle Roller Bearings and Linear Motion Rolling Guides was ¥11,900 million based on average sales price, up 4.0% year on year. And, net orders of Needle Roller Bearings, Liner Motion Rolling Guides and Machine Components were up 9.2% year on year to

   ¥15,204 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 ¥13,475 million, up 16.0% compared with the corresponding period of the previous fiscal year. Sales of Machine Components were ¥1,462 million, up 5.1% year on year.

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   Business Segment Information Three months ended June 30, 2025

   Three months ended June 30, 2024

   Change

   	Millions of yen	Component percentages	Millions of yen	Component percentages	Millions of yen	Percentage change
   Needle Roller Bearings,
   Linear Motion Rolling 13,475 Guides		90.2	11,615	89.3	1,860	16.0
   Machine Components 1,462		9.8	1,391	10.7	71	5.1
   Total net sales 14,938		100.0	13,006	100.0	1,931	14.9

2. Explanation of Financial Position

   Total assets as of June 30, 2025 totaled ¥120,523 million, a decrease of ¥583 million compared with the end of the previous fiscal year. This mainly comprised increases in notes and accounts receivable - trade of ¥1,107 million and investment securities of ¥889 million as well as decreases in cash and deposits of ¥261 million, inventories of ¥1,544 million, other accounts receivable of ¥515 million, and tangible fixed assets of ¥301 million. Total liabilities amounted to ¥44,202 million, a decrease of ¥832 million compared with the end of the previous fiscal year. This mainly comprised an increase in accrued expenses of ¥767 million as well as a decrease

   in long-term borrowings of ¥1,642 million.

   Total net assets amounted to ¥76,321 million, an increase of ¥248 million compared with the end of the previous fiscal year. This mainly comprised an increase in valuation difference on available-for-sale securities of ¥608 million as well as a decrease in foreign currency translation adjustments of ¥376 million.

3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information

While the Group's consolidated financial results for the three months ended June 30, 2025 trended slightly higher than its initial forecast in terms of profit, looking forward, economic conditions in Japan and overseas are expected to remain uncertain because of, among others, currency exchange rate trends and the impact of U.S. tariff policy. Accordingly, the Group has made no change to its consolidated financial results forecast announced on May 12, 2025.

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