HOME CENTER and HOME FASHION STORE

Financial Results Briefing Material
for the Six Months Ended
September 30, 2021
October 25, 2021
NAFCO Corporation

All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

HOME CENTER and HOME FASHION STORE

Summary of Financial Results forthe Six Months Ended September 30, 2021

■Net sales decreased due to repercussions from “countermeasureagainst COVID-19 infection” and “special cash payments” in theprevious year, in addition to the impact of heavy rains.
■Gardening merchandise showed steady growth in our main sectors ofmaterials, DIY, and gardening merchandises.
■Gross profit margin exceeded its highest record in FY2021.
■Private brand ratio increased 4.4 points, to 41.6% in FY2021.

All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

11

HOME CENTER and HOME FASHION STORE

Financial Results for the Six Months Ended September 30, 2021

(Millions of yen)Six months ended
September 30, 2020

Six months ended
September 30, 2021

% of sales

Net sales

126,865

100.0%

107,975

100.0%

85.1%

Gross profit

44,05734.7%

37,529

34.8%

85.2%

Operating grossprofit‐‐

37,68934.9%‐

Selling, general andadministrative
expenses

30,34623.9%

30,60328.3%

100.8%

Operating profit

13,711

10.8%

7,086

6.6%

51.7%

Ordinary profit

13,910

11.0%

7,304

6.8%

52.5%

Profit

8,465

6.7%

4,531

4.2%

53.5%

% of sales

YoY Change(reference)*The Company has applied “Accounting Standard for Revenue Recognition” and others since the beginning of the fiscal year ending March 31,2022. The figures before the application of such Standard and others are presented based on the disclosed figures before the application.
All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

22

HOME CENTER and HOME FASHION STORE

Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2021

Six months ended
September 30, 2021

Change From
the End of thePrevious Fiscal Year

Total assets

236,164

233,856(2,307)

Current assets

102,419

99,845(2,573)40,98436,079(4,904)

133,744

134,010+266

119,942

119,570(371)

83,34278,721(4,620)Interest-bearing liabilities

22,03820,973(1,064)

Of which, short-term borrowings

20,245

19,915

(330)

1,084

699

(384)

708

358(349)

152,821155,134+2,312

Cash and deposit ratio (%)

17.4

15.4

Ratio of interest-bearing liabilities (％)

9.3

9.0

Equity ratio (%)

64.7

66.3

Of which, cash and deposits

Non-current assets
Of which, property, plant and equipment

Liabilities

Of which, current portion of long-term borrowings
Of which, long-term borrowings

Net assets

All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

33

HOME CENTER and HOME FASHION STORE

Trends in 商品別売上構成比の推Sales Composition by ProductMaterials, DIY andgardening goodsFiscal year
ended Mar.
2015

Fiscal year
ended Mar.
2016

All Rights Copying NAFCO Co.,Ltd.

Householdgoods

Fiscal year
ended Mar.
2017

Fiscal year
ended Mar.
2018

Furniture and homefashion goods

Fiscal year
ended Mar.
2019

OthersFiscal year
ended Mar.
2020

Fiscal year
ended Mar.
2021

Six months
ended Sep.
2021

http://www.nafco.tv

44

HOME CENTER and HOME FASHION STORE

Trends in Existing Stores
Net sales of existing stores compared to previous year (%)
Record-breaking heatwave

Six months ended September 30,
2021 cumulative (existing stores)
Net sales：87.0％
Customers: 84.9％
Customer average: 102.4％

Declaration of a stateof emergency
Western Japan
heavy rains

Heavy rain of July 2020
Demand due to the approach of Typhoon Haishen(Oct. 2019: last-minute demand ahead of theconsumption tax hike)

Apr.

May.

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May.

Aug.

Sep.

http://www.nafco.tv

55

Jun.

Jul.

Sales
Customers
Customeraverage

All Rights Copying NAFCO Co.,Ltd.

HOME CENTER and HOME FASHION STORE

Trends in Gross Profit Margin
(%)

34.8%

Global financial crisisSeptember 2008

Consumption tax hike to 10%
Consumption tax hike to 8%

October 2019

April 2014

FY3/08

FY3/09FY3/10FY3/11

FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

Q2
FY3/22

31.9

31.0

31.7

32.2

32.6

32.5

33.4

33.5

33.1

32.8

32.5

32.1

32.9

34.4

34.8

All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

66

HOME CENTER and HOME FASHION STORE

Factors for a Change in Operating Profit
営業利益の増減要（第２四半期）(Six months ended September 30, 2021)

Materials, DIY and(Millions of yen) gardening merchandisesHousehold goods（2,834）

13,711

Furniture andhome fashiongoods（2,032）Others（1,187）（474）

Advertising
Utilities
expenses
expenses
OperatingPersonnel
revenue
expenses＋160+146+33（17）

Depreciation
andamortization

Others

＋65

＋29

7,086

Fiscal year ended March 2021
Operating profit

All Rights Copying NAFCO Co.,Ltd.

Fiscal year ending March 2022
Operating profit
http://www.nafco.tv

77

HOME CENTER and HOME FASHION STORE

Trends in Private Brand Ratio（％）

Company total
Private Brand ratioFiscal year
ended
Mar. 2018
All Rights Copying NAFCO Co.,Ltd.

Materials, DIY andgardening goods

Fiscal year
ended
Mar. 2019

Householdgoods

Fiscal year
ended
Mar. 2020

Furniture and home fashion

Fiscal year
ended
Mar. 2021

Six months
ended Sep.
２Q
2021
http://www.nafco.tv

88

HOME CENTER and HOME FASHION STORE

Private Brand Products（Materials, DIY, and Gardening Merchandises）

Rechargeable Pole-Chainsaw

Matte Finish latex paintNon-slip and easy to hold grip
for pruning hard to reachbranches on high or distantgarden trees.

Chic and subdued indooroutdoor paint matte finish
featuring low odor.

All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

99

HOME CENTER and HOME FASHION STORE

Private Brand Products（Household goods）

Fluffy Soft Towels

Room shoes

Specially processed untwisted
thread providing fluffy soft feel.

Room shoes that fit your feetperfectly made from lightweightmaterial.

All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

1010

HOME CENTER and HOME FASHION STORE

Private Brand Products（Furniture and Home Fashion goods）

Original Products【NS Light Series】

Interchangeable dining
set and sofa made ofnatural woods
All Rights Copying NAFCO Co.,Ltd.

【Bear】

Reversible
materials

Collaborativeproducts【Shikibu】

Soft to the touchmaterials warmand durable
http://www.nafco.tv

1111

HOME CENTER and HOME FASHION STORE

Number of Point Card Members

Point card membership is increasing through apps and cards（Up 2.5％ YoY）

（Ten thousand people）

Fiscal year
ended
Mar. 2019
All Rights Copying NAFCO Co.,Ltd.

Fiscal year
ended
Mar. 2020

Fiscal year
ended
Mar. 2021

Six months
ended Sep.
2021
２Q

http://www.nafco.tv

1212

HOME CENTER and HOME FASHION STORERole in Disasters
Number of municipalities with which wehave entered agreements for the supplyof disaster supplies

Number of municipalities that haveconcluded agreements

309 municipalities

As of September 30, 2021
* Municipalities include prefectural police, etc. (number ofapplications in process is excluded)

Fiscal year ending March 2022
Request status
Municipalities

Prefecture

Request details

MonthRequest
reasons

KitaHiroshima

Hiroshima

DisasterSupplies

AugustHeavyrain

Akitakata

Hiroshima

DisasterSupplies

AugustHeavyrain

All Rights Copying NAFCO Co.,Ltd.

FiscalyearendedMarch2017

Fiscalyear
endedMarch2018

Fiscalyear
ended
March2019

Fiscalyear
ended
March2020

Fiscalyear
ended
March2021

Fiscal year
ending March2022(As of Sep. 30)

http://www.nafco.tv

1313

HOME CENTER and HOME FASHION STOREStore Openings

TWO-ONE STYLE QANAT Nishi-Kobe

Togitsu StoreAll Rights Copying NAFCO Co.,Ltd.

Store
name

Opening

Location

New store

TWO-ONESTYLE
Mi Nara

April

Nara

Furniture and homefashion store

New store

TWO-ONE
STYLE
QANAT
Nishi-Kobe

September

Hyogo

Furniture and homefashion store

Expansion

Nobeokaminami

April

MiyazakiCombination store

RenovationNakabaru

June

SagaExpansion

Togitsu

JulyNagasaki

Store style

Home center
Combination store

Togitsu Store (Materials)
http://www.nafco.tv

1414

HOME CENTER and HOME FASHION STORE

Number of Stores by Business Type
Small stores of
300 tsubo
Furniture-onlystoresHI stand-alone
storesCombination
storesTotal stores

KansaiTohokuChugoku

KantoKyushu
All Rights Copying NAFCO Co.,Ltd.

Shikoku

Chubu
http://www.nafco.tv

1515

HOME CENTER and HOME FASHION STOREForecast for the Fiscal Year Ending March 31, 2022
(Millions of yen)
Fiscal year ending
March 2022
(full-yearcumulative plan)

Net sales% ofSales

207,600 100.0％% ofSales

Fiscal year
ended
March 2020
(full-yearcumulativeresults)

% of
Sales

234,578

100.0%

217,753

100.0%

Fiscal year ended
March 2021
(full-year
cumulativeresults)

Operatingprofit13,7006.6%

18,221

7.8%

8,319

3.8%

Ordinary
profit14,3006.9%

18,918

8.1%

8,964

4.1%

Profit

8,200

3.9%

*2021年10月19日に「業績予想の修正に関するお知らせ」を開示しております。

11,688

5.0%

4,941

2.3%

“Notification on Revisions to Performance Forecasts” disclosed on October 19th, 2021
*The Company has applied “Accounting Standard for Revenue Recognition” and others since the beginning of the fiscal year ending March 31,
2022. The figures before the application of such Standard and others are presented based on the disclosed figures before the application.
All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

1616

HOME CENTER and HOME FASHION STOREThis document is intended solely for the purpose of providing
information to investors.
We will disclose information as needed at an appropriate timedepending on the external environment and the progress ofbusiness performance.
IR news is also updated on our website as needed.
● For inquiries about this document, please contact:

Kobayashi, Accounting Division, NAFCO Corporation
Phone: +81-93-521-7030
http://www.nafco.tv(Securities code: 2790)

All Rights Copying NAFCO Co.,Ltd.

http://www.nafco.tv

1717