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 Six Months Ended August 20, 2019
[Japanese GAAP]
October 02, 2019
Nitori Holdings Co., Ltd.
Company name:
Stock exchange listing: Tokyo,Sapporo
Code number:
9843
URL:
https://www.nitorihd.co.jp/
Representative:
Toshiyuki Shirai
President and Chief Operating Officer
Contact:
Masaomi Zenji
General Manager,Accounting and Finance Division
Phone:
03-6741-1204
Scheduled date of filing quarterly securities report:
October 03, 2019
Scheduled date of commencing dividend payments:
October 23, 2019
Availability of supplementary briefing material on quarterly financial results: Yes
Holding of quarterly 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 Six Months Ended August 20, 2019 (February 21, 2019 to August 20, 2019)(1) Consolidated Operating Results (Cumulative)(% 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%Six months ended
August 20, 2019
321,598
6.6
55,577(0.6)
56,540(0.4)
36,847(2.9)
August 20, 2018
301,694
6.3
55,89016.1
56,75916.7
37,9588.3(Note) Comprehensive income:Six months ended August 20, 2019:¥35,176 million [(5.7) %]Six months ended August 20, 2018:¥37,306 million [25.4%]
Net income
per share
Six months ended
August 20, 2019
August 20, 2018

Diluted net income pershareYen

Yen

328.10338.71

327.34337.43(2) Consolidated Financial Position
Total assets
As ofAugust 20, 2019
February 20, 2019
(Reference) Equity:

Net assets

Million yen

641,867
619,286
As of August 20, 2019:
As of February 20, 2019:

Equity ratio

Million yen¥¥

531,132
500,192
530,745 million
499,721 million

―1―%

82.7
80.7

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

YenYenYen

Fiscal year ended February 20, 2019-47.00

Fiscal year ending February 20, 2020

-54.00Fiscal year ending February 20, 2020

Year-end-(Forecast)

TotalYenYen

50.00

97.00

54.00

108.00

No(Note) Revision to the forecast for dividends announced most recently:

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 20, 2020(February 21, 2019 to February 20, 2020)(% indicates changes from the previous corresponding period.)
Net income
Net income perNet sales
Operating income
Ordinary income
attributable toshareowners of parent%

Million yen%

Million yen%

Yen

Full year
643,000
5.7104,000
3.2(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

106,000
No

2.9

71,5004.9636.28* Notes:(1) Changes in significant subsidiaries during the six months ended August 20, 2019(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name: (Company name: Exclusion:-No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:))
Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
August 20, 2019:
114,443,496 shares
February 20, 2019:
114,443,496 shares2) Total number of treasury shares at the end of the period:
August 20, 2019:
2,071,918 shares
February 20, 2019:2,221,818 shares
3) Average number of shares during the period:
Six months ended August 20, 2019:
Six months ended August 20, 2018:

112,308,336 shares
112,068,726 shares*Quarterly financial results reports are not required to be subjected to quarterly 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
reasonable assumptions to the company. And we don’t commit to achieve these forecasting numbers. Actual results maydiffer from these forecasts by a variety of reasons.

―2―Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Million yen)
As of February 20,2019

As of August 20,2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade102,345
24,818139,11027,728Merchandise and finished goods
Work in process

59,184
153

49,410194

Raw materials and supplies
Forward exchange contracts

3,570-3,216399

Other

20,96910,834

Total current assets

211,042

230,893

Buildings and structures, net
Land115,868
171,342

111,487
171,846

Other, net

14,83019,992

Total property, plant and equipment

Non-current assets
Property, plant and equipment

302,041

303,326

Intangible assets

18,857

21,661

Investments and other assets
Investment securities

26,10325,333Long-term loans receivable
Guarantee deposits

778
14,268754
13,506

Lease deposits
Deferred tax assets

22,908
11,90523,128
11,718

Other
Allowance for doubtful accounts

11,380(0)

11,544(0)Total investments and other assets

87,34485,985408,244

410,973

619,286

641,867

Notes and accounts payable - trade
Short-term loans payable20,956
2,639

16,9592,746

Lease obligations
Accounts payable - other187
23,752

1,416
16,489

Income taxes payable
Provision for bonuses

19,472
4,206

19,044
3,324

Provision for point card certificates
Provision for special benefits to shareholders

2,014
343

3,034
198

Asset retirement obligations
Other

21,44422
22,384

Total current liabilities

95,016

85,619Total non-current assets
Total assets
Liabilities
Current liabilities―3―

(Million yen)
As of February 20,2019
Non-current liabilities
Long-term loans payable

As of August 20,2019

6,028

5,024

Lease obligations
Provision for directors' retirement benefits

1,956
228

6,204
228

Net defined benefit liability
Asset retirement obligations

3,202
5,365

1,075
5,428

Other

7,296

7,152

Total non-current liabilities

24,07825,114

119,094

110,734

Common stock
Capital surplus

13,37019,841

13,37020,779Retained earnings
Treasury stock

472,755(7,727)503,992(7,206)

Total shareholders' equity

498,240

530,935

947

572

901

277
(691)

Remeasurements of defined benefit plans

(367)

(348)

Total accumulated other comprehensive income

1,481(189)

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments
Foreign currency translation adjustment

Subscription rights to shares
Total net assets
Total liabilities and net assets

―4―

470

386

500,192

531,132

619,286

641,867

Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Million yen)
For the six months
ended August 20,2018

For the six months
ended August 20,2019

Net sales
Cost of sales

301,694
136,018

321,598
147,595

Gross profit

165,676

174,003

Selling, general and administrative expenses

109,786

118,425

Operating income

55,89055,577

Interest income
Dividends income

248
28

226
28

Equity in net income of affiliates
Foreign exchange gains

151
16219
-Vending machine Income
Gain on sales of goods

117
193

117
194

Other

339

398

1,095

1,183

51

145

174

570

Non-operating income

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

225

221

56,75956,540Gain on sales of non-current assets
Gain on reversal of subscription rights to shares

66315
1Penalty income
Settlement received

1624-

Total special gains

54317

Ordinary income
Special gains

Special losses
Loss on sales and disposal of non-current assets
Impairment loss
Loss on change in equity
Compensation for damage
Provision for loss on cancellation

824

0167

1,120
114

-

85648

Other23-

Total special losses

200

1,993

Income before income taxes

56,61354,864

Income taxes

18,65418,016

Net income

37,95836,847

Net income attributable to owners of parent

37,95836,847―5―Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Million yen)
For the six months
ended August 20,2018
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
Total other comprehensive income
Comprehensive income

For the six months
ended August 20,2019

37,95836,847137704(374)277(1,513)19(1,593)
19(652)(1,671)37,30635,17637,30635,176

Total comprehensive income attributable to:
Owners of parent―6―