Non-Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
[Japanese GAAP]
April 28, 2023
Company name: NAFCO Corporation
Stock exchange listing: Tokyo Stock Exchange
Code number: 2790
URL: http://www.nafco.tv
Representative: Takumi Ishida, President and CEO
Contact: Kazuomi Kobayashi, General Manager, Accounting Division
Phone: +81-93-521-7030
Scheduled date of Annual General Meeting of Shareholders: June 22, 2023
Scheduled date of filing annual securities report: June 23, 2023
Scheduled date of commencing dividend payments: June 23, 2023
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled (for institutional investors and securities analysts)(Amounts below one million yen are truncated.)
1. Financial and Operating Results for the Fiscal Year Ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Operating Results(Percentages refer to changes from the corresponding period of the preceding fiscal year.)Net sales

Operating profit

Ordinary profit

ProfitFiscal year ended
Millions of yen% Millions of yen% Millions of yen% Millions of yen%March 31, 2023
202,259 (2.1)
9,219 (23.2)
9,661 (23.2)
5,639 (29.2)
March 31, 2022
206,549
12,002
12,572
7,961
The Company has applied “Accounting Standard for Revenue Recognition” and others since the beginning of thefiscal year ended March 31, 2022. Therefore, changes from the actual figures before applying such Standard andothers are not presented.
Earnings pershare

Fiscal year ended
March 31, 2023
March 31, 2022

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to totalassets

Ratio ofoperating profit
to net sales

YenYen%%%197.42278.75

-3.5
5.1

4.1
5.4

4.6
5.8

(2) Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio%Net assets per share
Yen

As of March 31, 2023
238,408
161,813
157,763
As of March 31, 2022
233,075(Reference) Equity: As of March 31, 2023: ¥161,813 million
As of March 31, 2022: ¥157,763 million

67.9
67.7

5,665.24
5,523.42(3) Cash Flows

Fiscal year ended
March 31, 2023
March 31, 2022

Cash and cash
equivalents at theend of the term

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

9,656
1,180

(3,427)(3,496)(4,217)(4,556)33,23031,218

2. Dividends

Fiscal year ended
March 31, 2022
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Annual dividends
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end

Total
dividends

Total

Yen

Yen

Yen

Yen-

28.00
28.00

-

28.00
28.00

56.00
56.00

-

29.00

-

29.00

58.00

Payoutratio

Yen Millions of yen

1,599
1,599

Net asset
payout ratio

%%

20.1
28.4

1.0
1.0

28.7

3. Projected Operating Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Earnings
Net sales
Operating profit
Ordinary profit
Profitper shareFirst half(Cumulative)
Full year

Millions of yen% Millions of yen% Millions of yen%

Millions of yen%Yen

103,669

(0.9)

6,214

(7.5)

6,403

(6.3)

3,938(6.3)

137.88201,000

(0.6)

9,450

2.5

9,890

2.4

5,770

2.3202.03* Notes:(1) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(2) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the term (including treasury shares):
March 31, 2023: 29,784,400 shares
March 31, 2022: 29,784,400 shares2) Total number of treasury shares at the end of the term:
March 31, 2023: 1,221,812 shares
March 31, 2022: 1,221,812 shares
3) Average number of shares during the term:
Fiscal year ended March 31, 2023: 28,562,588 sharesFiscal year ended March 31, 2022: 28,562,588 shares* These financial results are outside the scope of audit by a certified public accountant or an audit corporation.
* Explanation of the proper use of financial results forecast and other notes- The earnings forecasts and other forward-looking statements provided herein are based on information thatis currently available to the Company and certain assumptions that the Company deems reasonable,
and the Company does not in any way guarantee the achievement of the projections. Actual results may
differ significantly from the forecasts due to various factors. For details on the assumptions of the earnings
forecasts and points to be noted in using the earnings forecasts, please refer to “1. Overview of Operating
Results, etc. (1) Overview of Operating Results for the Current Fiscal Year” on page 2 of the attacheddocument.

2

3. Financial Statements and Primary Notes(1) Balance Sheets(Millions of yen)
End of Previous Fiscal year(March 31, 2022)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Prepaid expenses
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciationLeased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold interests in land
SoftwareTelephone subscription rightLeased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital
Distressed receivables
Long-term prepaid expenses
Deferred tax assets
Leasehold and guarantee deposits
Construction assistance fund receivables
Other
Allowance for doubtful accounts
Total investments and other assets

1

End of Current Fiscal year(March 31, 2023)

34,111
3,90160,845
15
972
208
693
(4)
100,744

36,123
4,446
63,553
6
989
90
543
(4)
105,748

129,568(67,679)
61,88923,231(19,267)
3,964
4(4)
0
10,517(9,818)698
48,51515,150(11,831)3,318
171
118,557

132,376(70,347)
62,02823,393(19,608)
3,785
4(4)
0
10,659(10,027)631
48,952
16,309(12,825)3,484
128
119,010

2,585
160
47
501
78
3,372

2,588
126
47
481
68
3,312

267
21
0
1
290
3,585
6,226
11
8(10)
10,401

283
21
0
1
278
3,504
6,241
8
8(10)
10,337

(Millions of yen)
End of Previous Fiscal year
(March 31, 2022)
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes payable - trade
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Contract liabilities
Advance deposits received
Deposits received
Unearned revenue
Provision for bonuses
Provision for bonuses for directors (and other officers)
Notes payable - facilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Provision for retirement benefits
Provision for retirement benefits for directors (andother officers)
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

2

End of Current Fiscal year
(March 31, 2023)

132,331
233,075

132,660
238,408

14,881
14,156
19,585
599
1,209
3,567
517
3,209
1,268
301
57
1,043
28
1,758
358
62,545

14,13213,01518,925
99
1,326
4,236
1,670
446
3,264
1,074
332
55
1,042
31
3,183
354
63,190108
2,740
3,063

8
2,858
3,020

384

686

6,074
396
12,76775,312

6,454
375
13,404
76,594

(Millions of yen)
End of Previous Fiscal year
(March 31, 2022)
Net assets
Shareholders' equity
Share capital
Capital surplus
Legal capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of noncurrent assets
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

3

End of Current Fiscal Year
(March 31, 2023)

3,538

3,538

4,223
4,223

4,223
4,223

37

37

610

605

137,000
14,621
152,268(2,351)
157,679

142,000
13,665
156,308(2,351)
161,718

83
83
157,763
233,075

94
94
161,813238,408

(2) Statements of Income
Statements of Income
Previous Fiscal Year
(From April 1, 2021
to March 31, 2022)
206,549

Net sales
Cost of sales
Beginning merchandise inventory
Cost of purchased goodsTotal
Ending merchandise inventory
Total cost of sales
Gross profit
Operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Administrative service fee income
Commission income
Insurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental costs
Loss on disaster
Business partner compensation costs
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
System failure countermeasure costs
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit4(Millions of yen)
Current Fiscal Year
(From April 1, 2022
to March 31, 2023)
202,259

56,871
138,713
195,585
60,845
134,739
71,809328
72,13860,136
12,002

60,845
135,391
196,237
63,553
132,684
69,575383
69,95860,739
9,219

0
11
531
45
114
92
230
1,027

0
13
527
39
106
188
135
1,010

112
211
97
35
456
12,572

107
218
120
98
23
567
9,661

31
31

21
21

62
212
2
277
12,326
3,730
633
4,364
7,961

260
368
51
679
9,003
3,288
76
3,364
5,639

(3) Statements of Changes in Net Assets
Previous Fiscal Year (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equity
Capital surplus
SharecapitalLegalretainedearnings

Total
capitalsurplusLegalcapitalsurplus

4,223

4,223

37

615

127,000

Total
retainedearnings

19,661

147,313(1,435)(1,435)

18,225

145,878

4－(10,000)－Dividends of surplus(1,570)(1,570)

Profit

7,961

7,961

Balance at beginning of period

3,538

Retained earnings
Other retained earnings
Reserve for tax
Retained
purposeGeneral earnings
reduction entry reserve broughtof non-current
forwardassetsCumulative effects of changes inaccounting policies
Restated balance

3,538

4,223

4,223

37615

127,000

Changes during period
Provision of reserve for tax
purpose reduction entry ofnon-current assets(4)

Provision of general reserve

10,000Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period－－－－(4)

10,000(3,604)

6,390

3,538

4,223

4,223

37

610

137,000

14,621

152,268

Shareholders’ equity
TreasurysharesBalance at beginning of period

Total shareholders’equity(2,351)

Cumulative effects of changes
in accounting policies
Restated balance

Valuation and translation adjustments

152,724

Valuationdifference on
available-forsale securities
97

Total valuation andtranslation
adjustments

Total net assets

97

152,821(1,435)(2,351)

151,288(1,435)97

97

151,386

Changes during period
Provision of reserve for tax
purpose reduction entryof non-current assets－－

Provision of general reserve－－

Dividends of surplus(1,570)(1,570)

Profit

7,961

7,961

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

(13)

(13)

(13)

－

6,390

(13)

(13)

6,376

(2,351)

157,679

83

83

157,7635

Current Fiscal Year (From April 1, 2022 to March 31, 2023)(Millions of yen)
Shareholders’ equity
Capital surplus
SharecapitalLegalretainedearnings

Total
capitalsurplus

Legalcapitalsurplus
4,223

4,223

37610

137,000Total
retainedearnings

14,621

152,268

4－(5,000)－

Dividends of surplus(1,599)(1,599)Profit

5,639

5,639

Balance at beginning of period

3,538

Retained earnings
Other retained earnings
Reserve for tax
Retained
purpose reduction General earnings
reserve brought
entry of noncurrent assets
forwardChanges during period
Provision of reserve for tax
purpose reduction entry ofnon-current assets(4)

Provision of general reserve

5,000

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

－－－－

(4)

5,000(955)

4,039

3,538

4,223

4,223

37

605

142,000

13,665

156,308

Shareholders’ equity
TreasurysharesBalance at beginning of period

Valuation and translation adjustments

Total shareholders’equity(2,351)

157,679

Valuationdifference on
available-forsale securities
83

Total valuation andtranslation
adjustments

Total net assets

83

157,763

Changes during period
Provision of reserve for tax
purpose reduction entry
of non-current assets－－

Provision of general reserve－－

Dividends of surplus(1,599)(1,599)Profit

5,639

5,639

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

111111－4,039

1111

4,050

(2,351)

161,718

94

94

161,8136

(4) Statements of Cash Flows(Millions of yen)
Current Fiscal Year
(From April 1, 2022
to March 31, 2023)

Previous Fiscal Year
(From April 1, 2021
to March 31, 2022)
Cash flows from operating activities
Profit before income taxes

12,326

9,003

Depreciation

5,657

5,629

Impairment losses

212

368

Amortization of intangible assets

214245

Amortization of long-term prepaid expenses5554

Loss on retirement of property, plant and equipment

62260

Loss (gain) on sale of property, plant and equipment

(31)

(21)

2-

Other extraordinary loss (income)
Increase (decrease) in allowance for doubtful accounts(0)0Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for retirement benefits for directors(and other officers)
Increase (decrease) in provision for bonuses for directors (and otherofficers)
Increase (decrease) in provision for bonuses

(30)

(42)

16302

02

11(0)

Interest and dividend income(11)(13)

Interest expenses

112

107

Decrease (increase) in trade receivables
Decrease (increase) in inventories

(698)

(681)

(4,064)(2,715)(950)(1,890)(2,014)760

Decrease (increase) in other assets

(75)

107

Increase (decrease) in other liabilities

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

(656)

415

Other, net

1227

Subtotal

10,152

11,919

1113

(112)

(107)

Income taxes paid

(8,870)(2,169)Net cash provided by (used in) operating activities

1,180

9,656

Interest and dividends received
Interest paid

7

(Millions of yen)
Current Fiscal Year
(From April 1, 2022
to March 31, 2023)

Previous Fiscal Year
(From April 1, 2021
to March 31, 2022)
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(3,408)(3,157)48

57

Purchase of intangible assets

(150)

(28)

Payments for retirement of non-current assets

(56)

(240)

Payments for asset retirement obligations(57)-Payments of leasehold and guarantee deposits

(50)

(112)

Proceeds from refund of leasehold and guarantee deposits

177

96

Decrease (increase) in investments and other assets2(42)Net cash provided by (used in) investing activities(3,496)(3,427)

(660)

(660)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings(1,084)(599)

Repayments of lease liabilities(1,241)(1,358)Dividends paid

(1,570)(1,599)Net cash provided by (used in) financing activities(4,556)(4,217)

Net increase (decrease) in cash and cash equivalents(6,872)

2,011

Cash and cash equivalents at beginning of period

38,091

31,218Cash and cash equivalents at end of period

31,21833,2308