Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Year Ended February 20, 2018
[Japanese GAAP]
March 27, 2018
Nitori Holdings Co., Ltd.
Company name:
Stock exchange listing: Tokyo,Sapporo
Code number:
9843
URL:
http://www.nitorihd.co.jp/
Representative:
Toshiyuki Shirai
President and Chief Operating Officer
Contact:
Fumiki Takeda
General Manager,Accounting and Finance Division
Phone:03-6741-1204
Scheduled date of Annual General Meeting of Shareholders:
May 17, 2018
Scheduled date of commencing dividend payments:
April 26, 2018
Scheduled date of filing annual securities report:
May 18, 2018
Availability of supplementary briefing material on annual financial results: Yes
Holding of annual financial results meeting:Yes （for institutional investors and analysts）(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended February 20, 2018 (February 21, 2017 to February 20, 2018)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Fiscal year endedFebruary 20, 2018572,060
11.5
93,378
8.9
94,8608.3
64,2197.0February 20, 2017
512,958
12.0
85,77617.4
87,56316.7
59,99927.7
54,037 million [(19.0) %](Note) Comprehensive income:Fiscal year ended February 20, 2018:¥66,694 million [172.7%]
Fiscal year ended February 20, 2017:¥Net income pershare

Diluted net income
per share

Rate of return on Ordinary income to Operating income toequity
total assets ratio
net sales ratio

YenYen%Fiscal year endedFebruary 20, 2018574.49571.63
15.4
February 20, 2017
540.93536.23
16.6(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended February 20, 2018:
Fiscal year ended February 20, 2017:

%%

18.3
19.4
¥
¥

16.3
16.7
37 million- million(2) Consolidated Financial Position
Total assets
As ofFebruary 20, 2018
February 20, 2017
(Reference) Equity:

Net assets

Million yen

550,507487,814
As of February 20, 2018:
As of February 20, 2017:

Equity ratio

Net assets per share

Million yen

441,668
394,778
440,991 million
393,693 million

¥¥

%

Yen

80.1
80.7

3,938.89
3,530.51(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
February 20, 2018
February 20, 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

76,84077,930(82,751)(42,047)655(6,414)60,923
66,035―1―2. Dividends
Annual dividends
1st2nd3rdquarter-end quarter-end quarter-end

Year-end

Total
dividends

Total

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

February 20, 2017

-

35.00

-

47.00

82.00

9,140

15.2

2.5

February 20, 2018

-

45.00

-

47.00

92.00

10,309

16.0

2.5

-

47.00

-

50.00

97.00

Fiscal year ending
February 20, 2019

16.0

(Forecast)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 20, 2019 (February 21, 2018 to February 20, 2019)(% indicates changes from the previous corresponding period.)
Net income
Net income
Net sales
Operating income Ordinary income
attributable toper shareowners of parent
Six months ended August20, 2018
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

304,400

7.2

52,9009.953,4009.8

35,6001.6

317.98614,000

7.3

99,0006.0

100,000

5.4

68,0005.9

607.37* Notes:(1) Changes in significant subsidiaries during the period under review(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name:Exclusion:
1(Company name: Shanghai Liqiao Industrial Co., LtdYes))(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
No1) Changes in accounting policies due to the revision of accounting standards:
No2) Changes in accounting policies other than 1) above:No3) Changes in accounting estimates:
No4) Retrospective restatement:(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):February 20, 2018:
114,443,496 shares
February 20, 2017:
114,443,496 shares2) Total number of treasury shares at the end of the period:
February 20, 2018:
2,485,358 shares
February 20, 2017:
2,931,758 shares
3) Average number of shares during the period:
Fiscal Year ended February 20, 2018:
Fiscal Year ended February 20, 2017:

111,785,304 shares
110,918,322 shares―2―

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 20, 2018 (February 21, 2017 to February 20, 2018)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
February 20, 2018
February 20, 2017

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

89,55670,98226.2
0.6

61,33541,76946.8(5.1)

67,64350,68833.4
0.8

64,696
46,11640.3
2.0

Net income per share
Fiscal year ended
February 20, 2018
February 20, 2017

Diluted net income pershare

YenYen577.85414.72574.98411.12(2) Non-consolidated Financial Position
Total assets
As ofFebruary 20, 2018
February 20, 2017
(Reference) Equity:

Net assets

Million yen

396,386
332,023
As of February 20, 2018:
As of February 20, 2017:

Equity ratio

Million yen¥¥

369,490313,343
368,813 million
312,402 million

Net assets per share%

Yen

93.0
94.1

3,289.38
2,794.94* Financial results reports are not subjected to reviews.
*Explanation for appropriate use of financial forecasts and other special notes
The forecasts given in this document are based on the current available information in the company and certain reasonableassumptions of the company. And we don’t commit to achieve these forecasting numbers. Actual results may differ from these
forecasts by a variety of reasons.

―3―Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of February 20,2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Forward exchange contracts
OtherAllowance for doubtful accounts

As of February 20,2018

70,56018,48646,520
92
2,354
1,001
15,002
16,174(9)

63,33922,45849,690
56
2,985
5,309
20,191-

170,182

164,031

180,661(76,898)

192,364(85,105)

Buildings and structures, net

103,763

107,258

Machinery, equipment and vehicles
Accumulated depreciation

9,653(5,754)

10,426(6,153)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

3,899

4,273

13,890(8,511)

15,626(9,446)

5,379

6,179

126,923
3,728(1,214)

167,153
3,697(1,366)

Leased assets, net

2,514

2,330

Construction in progress

5,615

4,120

248,094

291,315

8,771
4,961

7,235
6,652

13,732

13,887

Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Lease deposits
Deferred tax assets
Other
Allowance for doubtful accounts

3,531
856
15,72020,515
2,952
12,239(9)26,472804
14,813
21,8805,447
11,854(0)Total investments and other assets

55,804

81,273

317,631

386,476

487,814550,507

Land
Leased assets
Accumulated depreciation

Total property, plant and equipment
Intangible assets
Leasehold right
Other
Total intangible assets

Total non-current assets
Total assets―4―

(Million yen)
As of February 20,2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Lease obligations
Accounts payable - other
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for point card certificates
Provision for special benefits to shareholders
Asset retirement obligations
Other

As of February 20,2018

16,001
625
187
19,291
15,630
564
3,751
1,301
214
44
18,112

19,6072,000
187
18,323
17,399
3,395
1,625
290
4
20,592

Total current liabilities

75,724

83,425

Non-current liabilities
Long-term loans payable
Lease obligations

2,330

8,000
2,143

Deferred tax liabilities
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other

3
228
2,634
4,565
7,548

4
228
2,713
4,950
7,373

Total non-current liabilities

17,31025,413

Total liabilities

93,035

108,839

Net assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock

13,37016,306361,103(10,188)

13,37018,232415,108(8,640)380,592

438,072884
10,369
2,243

796
(704)
3,105

Total shareholders' equity
Accumulated other comprehensive income
Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets―5―(396)(279)

13,100

2,918

940
144

677
-394,778

441,668

487,814550,507

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended February 20,2017

For the fiscal year
ended February 20,2018

Net sales
Cost of sales

512,958
234,684

572,060
257,281

Gross profit

278,274

314,778

Selling, general and administrative expenses

192,497

221,400

Operating income

85,776

93,378Non-operating income
Interest incomeDividends income
Foreign exchange gains
Vending machine income
Gain on sales of goods
Construction revenue from tenants
Facility use revenue
Equity in earnings of affiliates

433
34102
246
300
147
174-451
36
249
356
3637

Gain on forgiveness of debts
Other425

206
459

Total non-operating income

1,865

1,833

59
19

69
235
47

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income

―6―78

351

87,563

94,860(Million yen)
For the fiscal year
ended February 20,2017
Special gains
Gain on sales of non-current assets
Subsidy income
Penalty income
Gain on reversal of subscription rights to shares
Gain on sales of shares of subsidiaries and associates
Other
Total special gains
Special losses
Loss on sales and disporsal of non-current assets
Penalty for the scrap and build of outlets
Impairment loss
Special retirement expenses
Cancellation penalty
Loss on change in equity
Loss on valuation of investment securities
Other

For the fiscal year
ended February 20,2018
645
80
52
716

201
36
49
3,842-801

4,129

73
148
1054
190
61
4130
46
5,417354256-

Total special losses

543

6,206

Income before income taxes

87,822

92,783

Income taxes - current
Income taxes - deferred

28,565(787)

30,875(2,310)Total income taxes

27,77728,564

Net income

60,04464,21945-

59,99964,219Net income attributable to non-controlling interests
Net income attributable to owners of parent―7―

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended February 20,2017
Net income
Other comprehensive income
Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

For the fiscal year
ended February 20,2018

60,04464,219594
6,204(57)
(91)

(87)
(11,074)
862
116

6,649

(10,182)

Comprehensive income

66,69454,037

Total comprehensive income attributable to:
Owners of parent
Non-controlling interests

66,64945

54,037-Total other comprehensive income―8―

Consolidated Statements of Changes in Net Assets
For the fiscal year ended February 20,2017(Million yen)
Shareholders' equity
Common stock

Capital surplus

Retained earnings

13,37014,411

308,854

Total shareholders'equity(13,392)
323,244(7,749)(7,749)59,99959,999Balance at February 20,2016
Changes of items during theyear
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Other

1,894

Treasury stock

(4)

(4)

3,208

5,102
-

Net changes in items other thanthose in shareholders' equity

Total changes of items
during the year
Balance at February 20,2017-

1,89452,249

3,203

57,34813,37016,306361,103(10,188)

380,592

Accumulated other comprehensive income

Balance at February 20,2016
Changes of items during theyear
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury stock

Unrealized

Unrealized gain

holding gain

(loss) from(loss) on

hedgingsecurities

instruments

289

4,165

Total
Foreign currency Remeasurements

accumulatedtranslationof defined benefit

otheradjustment

planscomprehensive

Subscription
rights to shares

Noncontrollinginterests

Total net assets

1,174

98

330,968

income2,301(305)

6,450(7,749)
59,999(4)

Disposal of treasury stock
Change in ownershipinterest of parent due totransactions with noncontrolling interests
OtherNet changes in items other thanthose in shareholders' equity

Total changes of items
during the year
Balance at February 20,2017

5,102
594

6,204(57)(91)

6,649(233)

45

6,461

594

6,204(57)

(91)

6,649

(233)

45

63,809884

10,3692,243(396)13,100940

144394,778―9―For the fiscal year ended February 20,2018(Million yen)
Shareholders' equity
Common stock

Capital surplus

Retained earnings

13,37016,306361,103

Total shareholders'equity(10,188)
380,592(10,273)(10,273)

64,21964,219Balance at February 20,2017
Changes of items during theyear
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in ownershipinterest of parent due totransactions with noncontrolling interests
OtherTreasury stock

1,859

(3)

(3)

1,552

20,749

66

66
58

58

Net changes in items other thanthose in shareholders' equity

Total changes of items
during the year
Balance at February 20,2018-

1,926

54,004

1,548

74,816

13,37018,232415,108(8,640)455,409

Subscription
rights to shares

Accumulated other comprehensive income

Balance at February 20,2017
Changes of items during theyear
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury stock

Unrealized

Unrealized gain

holding gain

(loss) from(loss) on

hedgingsecurities

instruments

884

10,369Foreign currency Remeasurements
translationof defined benefit

adjustment

plans

2,243

(396)

Unrealized

Unrealized gain

holding gain

(loss) from

Noncontrollinginterests(loss) on

hedgingtranslation

instruments

adjustment

940

144

plans

Total changes of items
during the year
Balance at February 20,2018

394,778(10,273)
64,219(3)

Disposal of treasury stock
Change in ownershipinterest of parent due totransactions with noncontrolling interests
OtherNet changes in items other thanthose in shareholders' equity

Remeasurements

Foreign currency of defined benefit

securities

13,100Total net assets

20,74966
58(87)(11,074)862

116(10,182)

(263)

(144)

(10,590)(87)(11,074)862

116(10,182)

(263)

(144)

64,226796(704)

3,105(279)

2,918

677-

459,005―10―

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended February 20,2017
Cash flows from operating activities
Income before income taxes
Depreciation and amotization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for point cardcertificates
Loss (gain) on sales of shares of subsidiaries andassociates
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Penalty for the scrap and build of outlets
Loss (gain) on sales and disposal of non-current assets
Loss (gain) on change in equity
Subsidy income
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable –trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable –trade
Increase (decrease) in accrued consumption taxes
Other, net
Subtotal

For the fiscal year
ended February 20,201887,822
12,31210173326692,783
13,030
5,417
(19)
(355)
202

270

324

-

(3,842)(468)
59(487)
69-

(37)

148
(571)

46(70)

(80)
61

256
-

(1,816)(866)(3,742)(3,743)

1,409

2,544

2,447
470

(520)
(4,835)99,334

99,895

465
(56)

435
(55)

Interest and dividends income received
Interest expenses paid
Payment of penalty for the scrap and build of
outlets
Income taxes paid
Income taxes refund

(15)

(26)

(29,311)7,512(30,085)
6,677

Net cash provided by operating activities

77,93076,840―11―

(Million yen)
For the fiscal year
ended February 20,2017
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Purchase of short-term and long-term investment
securities
Proceeds from sales of short-term and long-term
investment securities
Proceeds from sales of shares of subsidiaries andassociates
Proceeds from government subsidy
Payments for guarantee depositsProceeds from collection of guarantee deposits
Payments for lease deposits
Proceeds from collection of lease deposits
Proceeds from guarantee deposits received
Proceeds from deposits received
Repayments of deposits received
Purchase of long-term prepaid expenses
Payments of loans receivable
Proceeds from collection of loans receivable
Other payments
Other proceeds

For the fiscal year
ended February 20,2018(6,581)
7,361(34,966)
1,708(4,155)395(6,320)8,372(60,888)292(3,084)--(23,300)

17

10-

4,473

291
(1,678)128(2,856)56387
1,145(2,103)(1,191)18(26)-(655)
202(1,696)
280
193
(138)
(361)
(170)
38(11)
13

Net cash used in investing activities(42,047)(82,751)

Cash flows from financing activities
Repayments of long-term loans payable
Proceeds from long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Cash dividends paid
Proceeds from exercise of stock options
Other payments(1,504)(188)(4)(7,753)3,036-(625)
10,000(187)(3)(10,272)
1,822
(77)

(6,414)655

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents

(227)

143

29,240(5,111)

Cash and cash equivalents at beginning of the year

36,794

66,035

Cash and cash equivalents at end of the year

66,03560,923―12―