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Financial Results Briefing Materialfor the Nine Months EndedDecember 31, 2021
January 31, 2022
NAFCO Corporation(Securities code: 2790)

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Summary of Financial Results forthe Nine Months Ended December 31, 2021
■Net sales decreased due to repercussions from the demand
created by “countermeasure against COVID-19 infection” and“special cash payments” in the previous year, in addition tosluggish sales of winter products.
■Gardening merchandise continued to perform strongly in our main
sectors of materials, DIY and gardening merchandises.
■Gross profit margin was 34.9%, a 0.5 point increase from the endof the previous year, which was itself a record high.
■Private brand ratio increased 5.3 points from the end of theprevious year to 42.5%.

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Financial Results for the Nine Months Ended December 31, 2021
(Millions of yen)
Nine months ended
December 31, 2020% of sales

Nine months ended
December 31, 2021

% of sales

YoY Change(reference)

Net sales

186,892

100.0%

161,991

100.0%

86.7%

Gross profit

64,553

34.5%

56,473

34.9%

87.5%

Operating grossprofit

64,553

34.5%

56,714

35.0%

87.9%

Selling, general andadministrative
expenses

46,22624.7%

45,401

28.0%

98.2%

Operating profit

18,326

9.8%

11,313

7.0%

61.7%

Ordinary profit

18,826

10.1%

11,632

7.2%

61.8%

Profit11,564

6.2%

7,245

4.5%

62.7%

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

Nine months ended
December 31, 2021

Change From theEnd of the Previous
Fiscal Year

Total assets

236,164

237,578+1,413Current assets

102,419

103,166+746

40,98437,312(3,671)

133,744

134,411+667

119,942

119,914(28)

83,34280,536(2,805)22,03820,688(1,349)20,24519,805

(440)

1,084

699(384)708

183(524)

152,821

157,041+4,219Cash and deposit ratio (%)

17.4

15.7

Ratio of interest-bearing liabilities (％)

9.3

8.7

Equity ratio (%)

64.7

66.1

Of which, cash and deposits

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

Liabilities
Interest-bearing liabilities
Of which, short-term borrowings
Of which, current portion of long-term borrowings
Of which, long-term borrowings

Net assets

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Trends in Sales Composition by ProductMaterials, DIY andgardening merchandises

Nine months
ended Dec.
2014

Nine months
ended Dec.
2015

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Nine months
ended Dec.
2016

Household goods

Nine months
ended Dec.
2017

Furniture and homefashion goods

Nine months
ended Dec.
2018

Nine months
ended Dec.
2019

OthersNine months
ended Dec.
2020

Nine months
ended Dec.
2021

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

Nine months ended December 31,
2021 cumulative (existing stores)
Net sales: 89.4%
Customers: 87.0%
Customer average: 102.7%

Declaration of a stateof emergency
Heavy rain of July 2020

Western Japan
heavy rains

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 Jun. Jul. Aug. Sep. Oct. Nov. Dec.
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Trends in Gross Profit Margin(%)

34.9%

Global financial crisis
September 2008

Consumption tax hike to 10%
October 2019

Consumption tax hike to 8%
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

Q3
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

34.9

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Factors for a Change in Operating Profit(Nine months ended December 31, 2021)
Operating gross profit

Selling, general and administrative expenses

Materials, DIY and(Millions of yen) gardening merchandisesHousehold goods(3,403)
Furniture andhome fashion
goods

18,326(2,597)

Others(1,493)(585)

Utilities
expenses

Advertisingexpenses
Personnel
Operatingexpensesrevenue+240+78+144(62)

Depreciation andamortization
Others

(100)

+765

11,313Fiscal year ended March 2021
Operating profit
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Fiscal year ending March 2022
Operating profit
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Trends in Private Brand Ratio（％）

Company total
Private Brand ratio

Fiscal year
ended
Mar. 2018
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Materials, DIY andgardening merchandises

Fiscal year
ended
Mar. 2019

Fiscal year
ended
Mar. 2020

Householdgoods

Furniture andhome fashion

Fiscal year
ended
Mar. 2021

Nine months
ended
３Q
Dec.
2021
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Private Brand Products (Materials, DIY and Gardening Merchandises)

Applying the Technologies Developed through Our
Professional-use Products to Outdoor Products【Outdoor glove】
Heat-resistant, high-performance split cowhide gloves thatoffer professional-use quality.

【Flame-retardant quilted blouson jacket with shaggy liner】
Blouson jackets treated to prevent flame spread whenstruck by sparks.
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Private Brand Products (Household goods)

Advanced, Reasonably-priced Outdoor Products【Duralumin-framed 2-way chair】
Frame made of lightweight, sturdy duralumin.
The chair’s legs can be switched between a lowand high profile to fit individual usage scenarios.

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【Low cushioned bench】
A highly portable cushioned bench.

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Private Brand Products (Furniture and Home Fashion goods)

West Coast-themed Interior Decor Coordination【Milieu Rug Series】【La Mer Comforter Cover Series】

Designs that use the fresh, casual feel ofthe coast to create open, relaxing spaces【Matin Curtain Series】
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Private Brand Products (Furniture and Home Fashion goods)

Original Products【Sei Series】
Pocket coil bottom
cushions and feet highenough for cleaning byrobotic vacuums.
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【Smart Series】
Modular unit desks.

CollaborativeProducts【Study desks】
Modular desks that canbe reconfigured as
children grow older.
Include extensiblefunction for making thedesktop wider.
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Number of Point Card Members(Ten thousand people）

Point card membership is increasing through apps and cards(Up 3.4％ from the end of the previous fiscal year）

Fiscal year
ended
Mar. 2019
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Fiscal year
ended
Mar. 2020

Fiscal year
ended
Mar. 2021

Nine months
ended
Dec. 2021

３Q

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Role in Disasters

Number of municipalities that haveconcluded agreements

Number of municipalities with which
we have entered agreements for the
supply of disaster supplies

315 municipalities
As of December 31, 2021
* Municipalities include prefectural police, etc. (number of applications in process is excluded)

Request status for Fiscal year ending March 2022
Municipalities(Name ofprefecture)

Requestdetails

MonthRequest
reasons

Kitahiroshima cho(Hiroshima)

DisasterSupplies

AugustHeavy rain

Akitakata city(Hiroshima)

DisasterSupplies

AugustHeavy rain

Kumamoto
prefecture(Kumamoto)DisasterSupplies

November

Epidemiccontrol

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(avian flu)

Fiscalyear
ended
Mar.
2017

Fiscal
year
ended
Mar.
2018

Fiscal
year
ended
Mar.
2019

Fiscalyear
ended
Mar.
2020

Fiscalyear
ended
Mar.
2021

Fiscal year
ending Mar.
2022
(As of Dec. 31)

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HOME CENTER and HOME FASHION STOREStore Openings

Yokkaichi StoreStore nameOpeningLocation

Store style

New store

TWO-ONESTYLE
Mi Nara

April

Nara

Furniture andhome fashion
store

New store

TWO-ONE
STYLE
QANAT
Nishi-Kobe

September

Hyogo

Furniture andhome fashion
store

New store

Yokkaichi

December

Mie

Home center

New store

Minamiyatsushiro

December

Kumamoto

Home center

Expansion

Nobeokaminami

April

MiyazakiCombination
store

Renovation

Nakabaru

June

Saga

Home center

Expansion

Togitsu

July

NagasakiCombination
store

Expansion

Hita

NovemberOitaHome center

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Number of Stores by Business Type
Small stores of300 tsubo
Furniture-onlystoresHI stand-alone
storesCombination
storesTotal stores

KansaiTohokuChugoku

Kanto
KyushuAll Rights Copying NAFCO Co.,Ltd.

Shikoku

Chubu
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Business Growth Status
Priority store opening
pattern

Related segment(s)Composition
ratio(no. ofMaterials, DIY
Householdandgardeningstores)
goodsmerchandises

Combination
store

39.8%

Home center

50.7%

Home fashion
store

3.9%

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○

○

○

○

Furnitureand home
fashiongoods

OthersStore area

Numberof people
in served
businessarea○○

13,000 square
meters or more

200,000○

7,000 square
meters,10,000 square
meters or more

100,000

7,000 square
meters300,000(someproducts)○

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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％

Fiscal year
ended March
2021(full-yearcumulativeresults)

% of
Sales

Fiscal year
ended March2020(full-yearcumulativeresults)% ofSales

234,578

100.0％

217,753

100.0％

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%

11,688

5.0%

4,941

2.3%

“Notification on Revisions to Performance Forecasts” disclosed on October 19, 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.
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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 of businessperformance.
This document may contain forward-looking statements. Thesestatements are not statements of past fact, but are instead forecasts
based on hypotheses and assumptions determined from information
available at the current time.
They also involve risks and uncertainties related to economic trends,
market environments, and the like.
Actual business performance may therefore differ from the Company’sforecasts.
http://www.nafco.tv(Securities code: 2790)

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