Release of Second quarter business results for the March 2026 term

November 10, 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 file semi-annual securities report: November 10, 2025 Scheduled date to commence dividend payments: December 8, 2025 Preparation of supplementary material on financial results: Yes

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

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

1. Consolidated financial results for the six months ended September 30, 2025 (from April 1, 2025 to September 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
      Six months ended September 30, 2025 September 30, 2024	Millions of yen 30,254 26,705	% 13.3 (6.2)	Millions of yen 1,543 766	% 101.3 (67.1)	Millions of yen 1,776 664	% 167.1 (79.8)	Millions of yen 1,706 (511)	% - -

      Note: Comprehensive income	For the six months ended September 30, 2025:	¥3,165 million	[-%]
      	For the six months ended September 30, 2024:	¥(1,593) million	[-%]

      	Basic earnings per share	Diluted earnings per share
      Six months ended	Yen	Yen
      September 30, 2025	24.62	24.56
      September 30, 2024	(7.42)	-

   2. Consolidated financial position

   	Total assets	Net assets	Equity-to-asset ratio	Net assets per share
   As of	Millions of yen 122,594 121,106	Millions of yen 78,788 76,072	%	Yen
   September 30, 2025			64.2	1,128.72
   March 31, 2025			62.7	1,099.01

   Reference: Equity

   As of September 30, 2025: ¥78,714 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		14.00
   Fiscal year ending March 31, 2026 (Forecast)			-	14.00	28.00

   Note: Revisions to the forecast of cash dividends most recently announced: Yes

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: Yes

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 semi-annual consolidated financial statements: Yes

   Note: For further details, please refer to "2. Semi-annual Consolidated Financial Statements and Principal Notes (4) Notes to Semi-annual Consolidated Financial Statements (Accounting Methods Adopted Particularly for the Preparation of Semi-annual Consolidated Financial Statements)" on page 8.

3. 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. Semi-annual Consolidated Financial Statements and Principal Notes (4) Notes to Semi-annual Consolidated Financial Statements (Changes in accounting policies)" on page 8.

4. Number of issued shares (common shares)

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

      As of September 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 September 30, 2025	3,763,052 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 (730,600 shares as of September 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 (1,125,966 shares as of September 30, 2025 and 1,465,949 shares as of September 30, 2024).

• Semi-annual financial results reports are exempt from review 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, November 10, 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 Semi-annual Financial Results (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 2.

1. Qualitative Information on Semi-annual Financial Results

1. Explanation of Operating Results

   During the six months ended September 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, despite continuing uncertainties due to the impact of 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 the key themes of focusing on enhancement in areas of strength and rebuilding our global business structure, we have made progress on measures to tackle our key challenges. In addition, to materialize our global strategy aimed at achieving medium-to long-term growth, we reorganized our corporate structure to adopt a divisional system in October of this year. From a sales perspective, we actively participated in trade exhibitions in Japan and overseas, deepened business relationships with existing customers, and cultivated new markets and customers. At the same time, we added an automatic selection tool for Linear Motion Rolling Guides on our website and strove to offer customers

   greater convenience.

   In terms of product development, we enhanced our lineup of high-value added products that meet customer needs, such as by developing the Lightweight Type Crossed Roller Bearing LCRB, which uses press-formed inner and outer rings, reducing its weight by over 60% compared to conventional products. Furthermore, in August, R&D Center China was established within our sales subsidiary, IKO-THOMPSON (SHANGHAI) LTD. This was done with the aim of further reinforcing our technical development and our ability to rapidly respond to customers in the Chinese market.

   From a production standpoint, 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. In July, we decided to consolidate and reallocate the production functions of the Kamakura Factory, one of our production sites, to Gifu Factory Complex with the aim of supplying products more quickly and stably.

   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 robots, and electronics-related devices. In Europe, net sales remained nearly flat because of a slowdown in demand for general industrial machinery and electronics-related devices, despite signs of a recovery in demand for commercial application products. 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 South Korea, Singapore, Indonesia.

   As a result, consolidated net sales for the six months ended September 30, 2025 totaled ¥30,254 million, up 13.3% year on year. On the earnings front, due to some factors such as the effects of the increase in net sales and increase in production volume, operating profit was ¥1,543 million, up 101.3% year on year, ordinary profit was

   ¥1,776 million, up 167.1% year on year, and profit attributable to owners of parent was ¥1,706 million (compared to loss attributable to owners of parent of ¥511 million in the corresponding period of the previous fiscal year).

   In the six months ended September 30, 2025, net production of Needle Roller Bearings and Linear Motion Rolling Guides was ¥24,623 million based on average sales price, up 8.5% year on year. And, net orders of Needle Roller Bearings, Liner Motion Rolling Guides and Machine Components were up 13.7% year on year to

   ¥30,553 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 ¥27,147 million, up 14.8% compared with the corresponding period of the previous fiscal year. Sales of Machine Components were ¥3,106 million, up 1.7% year on year.

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   Business Segment Information Six months ended

   Six months ended

   Change

   September 30, 2025 September 30, 2024

   	Millions of yen	Component percentages	Millions of yen	Component percentages	Millions of yen	Percentage change
   Needle Roller Bearings,
   Linear Motion Rolling 27,147 Guides		89.7	23,649	88.6	3,498	14.8
   Machine Components 3,106		10.3	3,055	11.4	51	1.7
   Total net sales 30,254		100.0	26,705	100.0	3,549	13.3

2. Explanation of Financial Position

   1. Assets, liabilities and net assets

      Total assets as of September 30, 2025 totaled ¥122,594 million, an increase of ¥1,488 million compared with the end of the previous fiscal year. This mainly comprised increases in notes and accounts receivable -trade of ¥1,845 million and investment securities of ¥1,791 million as well as a decrease in inventories of

      ¥2,426 million.

      Total liabilities amounted to ¥43,806 million, a decrease of ¥1,227 million compared with the end of the previous fiscal year. This mainly comprised an increase in income taxes payable of ¥400 million as well as a decrease in long-term borrowings of ¥1,675 million.

      Total net assets amounted to ¥78,788 million, an increase of ¥2,715 million compared with the end of the previous fiscal year. This mainly comprised increases in retained earnings of ¥1,036 million, valuation difference on available-for-sale securities of ¥1,248 million, and foreign currency translation adjustments of ¥298 million.

   2. Cash flows

      Cash and cash equivalents as of September 30, 2025 totaled ¥23,819 million, an increase of ¥1,141 million compared with the end of the previous fiscal year.

      (Cash flows from operating activities)

      Net cash provided by operating activities amounted to ¥4,777 million, an increase of ¥736 million at the corresponding period of the previous fiscal year. The major inflows were profit before income taxes of

      ¥1,792 million, depreciation and amortization of ¥1,554 million, decrease in inventories of ¥2,698 million, while the major outflow was increase in trade receivables of ¥1,774 million.

      (Cash flows from investing activities)

      Net cash used in investing activities amounted to ¥1,495 million, a decrease of ¥1,293 million at the corresponding period of the previous fiscal year. The major outflow was purchase of property, plant and equipment of ¥1,525 million.

      (Cash flows from financing activities)

      Net cash used in financing activities amounted to ¥2,186 million (¥6,563 million provided in the corresponding period of the previous fiscal year). The major inflow was proceeds from long-term borrowings of ¥2,500 million, while the major outflows were repayments of long-term borrowings of ¥4,175 million and cash dividends paid of ¥686 million.

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

For the fiscal year ending March 31, 2026, the Group revised the consolidated operating performance forecasts it had announced on May 12, 2025. For details, please refer to the "Notice Regarding Revisions to Full-Year Financial Results Forecasts, Determination of Dividends of Surplus (Interim Dividends) and Revision of Year-End Dividend Forecast" announced today.

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