NSK has established a stock-based retirement benefit trust for the purpose of providing for future retirement benefits. In recent years, however, pension assets including the retirement benefit trust have been significantly overfunded relative to retirement benefit obligations, and this situation is expected to continue in the future. In addition, after selling some of the shares in the trust in the previous fiscal year (fiscal year ended March 31, 2023) the Company has decided to conduct a partial refund of its retirement benefit trust.

1. Date of refund

April 28, 2023 (scheduled)

2. Amount to be refunded

35 billion yen

3. Impact on profit and loss

As a result of the refund, a portion of unrecognized actuarial gains and losses arising from changes in the amount of trust assets will be temporarily amortized, and we expect to record an extraordinary gain of approximately 10 billion yen in our non-consolidated financial statements for the fiscal year ending March 31, 2024. (There will be no impact on the consolidated statement of income for the fiscal year ending March 31, 2024.)

The amount of extraordinary gains related to the partial refund of the retirement benefit trust will be determined at the time of the refund and may change in the future.