Nippon Thompson : Release of first quarter business results for the March 2018 term

Corporate Headquarters: Tokyo

Listed Code: 6480 Listed Stock Exchange: Tokyo (URL: http://www.ikont.co.jp/eg/)

Representative: Shigeki Miyachi, President and Representative Director

For further information contact: Kesaaki Ushikoshi, General Manager ofAccounting Department Telephone: +81-3-3448-5824

Figures have been rounded off toeliminate amounts less than one million yen.

1. Consolidated Operating Performance forthe First Quarter of Fiscal Year Ending March 31, 2018 (FromApril 1, 2017 to June 30, 2017)
2. Resultsof Consolidated Operations

   (Millions of yen)

   Netsales	Percentage change	Operating income	Percentage change	Ordinary income	Percentage change
   June 30, 2017	12,906	20.9	480	(24.5)	514	735.2
   June 30, 2016	10,677	(8.2)	636	(36.6)	61	(95.1)

   Note: Comprehensive income

   Three-month period ended June 30, 2017:	1,215 million yen	－ %
   Three-month period ended June 30, 2016:	(1,642) million yen	－ %

   : Percentage change for net sales, operating income, ordinary income, and profit attributable to owners of parent indicate percentage increase/decrease compared to the same period in the previous year.

   Profit attributable to owners of parent	Percentage change	Earnings per share (Yen)	Diluted earnings per share (Yen)
   June 30, 2017	702	－	9.78	9.76
   June 30, 2016	(30)	－	(0.42)	－

3. Consolidated Financial Position

4. (Millions of yen)

   Total assets	Net assets	Equity ratio (%)	Net assets per share (Yen)
   June 30, 2017	96,221	59,362	61.3	820.45
   March 31, 2017	99,627	58,605	58.4	810.11

   Reference: Shareholders'equity

   Asof June 30, 2017:	58,976 million yen
   Asof March 31, 2017:	58,216 million yen

5. Dividends

   Dividendspershare

   (Yen)

   Base date June 30 September 30 December 31 March 31 Full Fiscal Year

   2018(Forecast)	6.50 － 6.50 13.00
   2018 －

   2017 － 6.50 － 6.50 13.00

   Note: Change in the current three-month period ended June 30, 2017, to dividend forecast: None

6. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2018

   (Millions of yen)

   Net sales	Percentage change	Operating income	Percentage change	Ordinary income	Percentage change
   Six-month period ending September 30, 2017	25,000	17.6	1,400	101.7	1,300	－
   Year ending March 31, 2018	50,000	13.3	3,000	161.9	2,900	220.3

   Profit attributable to owners of parent	Percentage change	Earnings per share (Yen)
   Six-month period ending September 30, 2017	1,200	－	16.69
   Year ending March 31, 2018	2,200	－	30.59

   Change in the current three-month period ended June 30, 2017, to consolidated operating performance forecast:

   None

   Notes: Percentage change for net sales, operating income, ordinary income, and profit attributable to owners of parent indicate percentage increase/decrease compared to the same period in the previous year.

7. Others

8. Changes in the state of significant subsidiaries during the period (Changes regarding specific companies accompanying changes in the scope of consolidation): None

9. Application of the special accounting methods for the presentation of the quarterly consolidated financial statements: Yes Note: For further details, please refer on page 8.

10. Changes in accounting principles and accounting estimates, and restatements

    Changes in accounting principles arising from revision of accounting standards:	None
    Changes other than those in above:	None
    Changes in accounting estimates:	None
    Restatements:	None

11. Number of shares issued (Common stock)

12. Number of shares outstanding at period-end (Including treasury stock)

    Asof June 30, 2017:	73,501,425 shares
    Asof March 31, 2017:	73,501,425 shares

    Number of treasury stock

    Asof June 30, 2017:	1,618,590 shares
    Asof March 31, 2017:	1,638,790 shares

    Average number of shares outstanding at period-end

    Three-month period ended June 30, 2017:	71,876,169 shares
    Three-month period ended June 30, 2016:	72,383,671 shares

    Note: The number of treasury stock includes treasury stock held by the ESOP trust. This resulted in the addition to treasury stock of 93,500 shares as of June 30, 2017 and 113,700 shares as of March 31, 2017. In addition, treasury stock held by the ESOP trust is excluded from the calculation of the average number of shares outstanding at period-end, as is other treasury stock. The number of shares excluded from said calculation totaled 100,166 shares for the three-month period ended June 30, 2017 and 315,600 shares for the three-month period ended June 30, 2016.

    These consolidated financial statements are not subject to quarterly review by auditors Explanations or Other Items Pertaining toAppropriate use of Operating Performance Forecasts

    Performance forecasts presented herein are based on information available to the Nippon Thompson Group (the "Group") as of the date of this document, August 10, 2017. Accordingly, for a wide variety of reasons, there remains the possibility that actual performance results may differ from projections.

13. Consolidated Financial Statements
14. (1) Consolidated Balance Sheets

    As of June 30, 2017 and March 31, 2017

    Millions of yen
    ASSETS	June 30, 2017	March 31, 2017
    Current Assets:
    Cash and deposits	14,261	20,240
    Notes and accounts receivable-trade	13,688	13,113
    Securities	2,500	－
    Finished products	12,342	13,186
    Material in process	8,436	7,892
    Raw material	4,693	4,837
    Others	3,276	3,369
    Less: Allowance for doubtful accounts	(11)	(11)
    Total current assets	59,188	62,629
    Fixed Assets:
    Tangible fixed assets:
    Machinery and vehicles	10,282	10,548
    Others	10,237	10,324
    Total tangible fixed assets	20,520	20,872
    Intangible fixed assets	3,217	3,374
    Investments and other assets:
    Investment securities	10,926	10,440
    Others	2,412	2,356
    Less: Allowance for doubtful accounts	(45)	(45)
    Total investments and other assets	13,294	12,751
    Total fixed assets	37,032	36,998
    TOTALASSETS	96,221	99,627