Non-Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
[Japanese GAAP]
April 28, 2022
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 23, 2022
Scheduled date of filing annual securities report: June 24, 2022
Scheduled date of commencing dividend payments: June 24, 2022
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, 2022
(April 1, 2021 to March 31, 2022)(1) Operating Results (Percentages refer to changes from the corresponding period of the preceding fiscal year.)Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Millions of yen% Millions of yen

206,549
234,578

7.7

Earnings pershareFiscal year ended
March 31, 2022
March 31, 2021

Operating profit%

Millions of yen%

12,572
18,918

111.1

7,961
11,688 136.5

Ratio of ordinary
profit to totalassets

Ratio ofoperating profit
to net sales

Return on equity

Millions of yen%

Yen

278.75409.22

Profit12,002
18,221 119.0

Diluted earnings
per share

Yen

Ordinary profit

%

5.1
7.9-

5.4
8.3%

%

5.8
7.8(2) Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio%

Net assets per share
Yen

157,763
As of March 31, 2022
233,075
152,821
As of March 31, 2021
236,164(Reference) Equity: As of March 31, 2022: ¥157,763 million
As of March 31, 2021: ¥152,821 million

67.7
64.7

5,523.42
5,350.42(3) Cash Flows

Fiscal year ended
March 31, 2022
March 31, 2021

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

1,180
24,781(3,496)(3,495)(4,556)(4,492)

31,21838,09112. Dividends

Fiscal year ended
March 31, 2021
March 31, 2022
Fiscal year ending
March 31, 2023(Forecast)

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

Total
dividends

Total

PayoutNet asset
ratio
payout ratio

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

-

23.00
28.00

-

27.00
28.00

50.00
56.00

1,428
1,599

12.2
20.1

0.9
1.0

-

28.00

-

28.00

56.00

3. Projected Operating Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)(% indicates changes from the previous corresponding period.)
Net salesFirst half(Cumulative)
Full year

Millions of yen

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Earnings
per shareProfit%

Millions of yen%

Yen

107,805

(0.2)

7,939

12.0

8,162

11.7

5,109

12.8

178.87208,100

0.8

12,800

6.6

13,200

5.0

8,000

0.5

280.08* 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: Yes
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, 2022: 29,784,400 shares
March 31, 2021: 29,784,400 shares2) Total number of treasury shares at the end of the term:
March 31, 2022: 1,221,812 shares
March 31, 2021: 1,221,812 shares
3) Average number of shares during the term:
Fiscal year ended March 31, 2022: 28,562,588 sharesFiscal year ended March 31, 2021: 28,562,630 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 theCompany 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 OperatingResults, 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, 2021)
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, netStructures
Accumulated depreciation
Structures, netVehicles
Accumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold interests in land
SoftwareTelephone subscription rightLeased assets
OtherTotal 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

3

End of Current Fiscal year
(March 31, 2022)

40,984
3,034
56,871
13
899
103
516
(4)
102,419

34,111
3,901
60,845
15
972
208
693
(4)
100,744

128,037(64,405)
63,631
22,985(18,669)
4,316
5
(5)
0
10,444(9,453)990
48,531
13,192(10,825)2,366
104
119,942

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

2,500
145
47
415
96
3,204

2,585
160
47
501
78
3,372

293
21
0
1
341
3,573
6,353
15
7(10)
10,597

267
21
0
1
290
3,585
6,226
118(10)10,401

(Millions of yen)
End of Previous Fiscal year
(March 31, 2021)
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
Advance deposits received
Deposits received
Unearned revenue
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for point card certificates
Notes payable - facilities
Asset retirement obligations
Contract liabilities
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

4

End of Current Fiscal year
(March 31, 2022)

133,744
236,164

132,331
233,075

16,441
13,547
20,245
1,084
946
5,081
5,800
2,082
1,168
313
43
1,032
28
1,033
1,921
7
353
71,131

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

708
1,808
3,093

108
2,740
3,063

367
5,835
397
12,21083,342

384
6,074
396
12,76775,312

(Millions of yen)
End of Previous Fiscal year
(March 31, 2021)
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

5

End of Current Fiscal Year
(March 31, 2022)

3,538

3,5384,223
4,223

4,223
4,223

37

37

615
127,000
19,661
147,313(2,351)
152,724610
137,000
14,621
152,268(2,351)
157,679

97
97
152,821236,164

83
83
157,763
233,075

(2) Statements of Income
Statements of Income(Millions of yen)

Net sales
Cost of sales
Beginning merchandise inventory
Cost of purchased goods
TotalEnding 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
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit6Previous Fiscal Year
(From April 1, 2020
to March 31, 2021)
234,578

Current Fiscal Year
(From April 1, 2021
to March 31, 2022)
206,549

57,068
153,654
210,723
56,871
153,851
80,72680,72662,504
18,22156,871
138,713
195,585
60,845
134,739
71,809328
72,13860,136
12,002

0
10
499
58
171
195
228
1,164

0
11
531
45
114
92
230
1,027

120
192
113
40
466
18,918

112
211
97
35
456
12,572

11
297
309

31
31

109
244
197
551
18,677
6,904
84
6,988
11,688

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

(3) Statements of Changes in Net Assets
Previous Fiscal Year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
Capital surplus
Sharecapital

Balance at beginning of period

Legalcapitalsurplus

3,538

Retained earnings

Total
capitalsurplus

4,223

Other retained earnings
Reserve for tax
Retained
purpose reduction General earnings
reserve brought
entry of noncurrent assets
forwardLegal
retainedearnings

4,223

37620

124,000

Total
retainedearnings

12,195

136,853

4－(3,000)－Dividends of surplus(1,228)(1,228)

Profit11,688

11,688Changes during period
Provision of reserve for tax
purpose reduction entry of
non-current assets(4)

Provision of general reserve

3,000

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

－－－－

(4)

3,000

7,465

10,460

3,538

4,223

4,223

37

615

127,000

19,661

147,313

Shareholders’ equity
Total shareholders’equityTreasurysharesBalance at beginning of period

Valuation and translation adjustments(2,350)142,263

Valuationdifference on
available-for-salesecurities
60

Total valuation andtranslation
adjustments

Total net assets

60

142,324

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

Provision of general reserve－－

Dividends of surplus(1,228)(1,228)

Profit11,688

11,688(0)(0)

Purchase of treasury shares(0)

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

373737(0)10,46037

37

10,497(2,351)

152,72497

97

152,821

7Current Fiscal Year (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders’ equityCapital surplus
SharecapitalBalance at beginning of period

Legalcapitalsurplus

3,538

Retained earnings

Total
capitalsurplus

4,223

Other retained earnings
Reserve for tax
Retained
purpose reduction General earnings
reserve brought
entry of noncurrent assets
forwardLegal
retainedearnings

4,223

37615

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

Cumulative effects of changes inaccounting policies
Restated balance

3,538

4,223

4,22337615

127,000

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

Provision of general reserve

10,000Purchase of treasury shares
Net 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
Total shareholders’equityTreasurysharesBalance at beginning of period(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 entry
of non-current assets－－

Provision of general reserve－－

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

Profit

7,961

7,961

－

－

Purchase of treasury shares
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

157,7638

(4) Statements of Cash Flows(Millions of yen)Previous Fiscal Year
(From April 1, 2020
to March 31, 2021)

Current Fiscal Year
(From April 1, 2021
to March 31, 2022)

Cash flows from operating activities
Profit before income taxes

18,677

12,326

Depreciation

5,583

5,657

Impairment losses

244

212

Amortization of intangible assets

158

214

Amortization of long-term prepaid expenses

5955

Loss on retirement of property, plant and equipment

10962

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

(11)

(31)

-

2

Other extraordinary loss (income)
Increase (decrease) in allowance for doubtful accounts
Increase (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

1(0)

(55)

(30)

(660)

16-

029

11

Increase (decrease) in provision for point card certificates(145)-Interest and dividend income

(10)

(11)

Insurance claim income

(297)

-

Interest expenses

120112

Loss due disaster

197-

Decrease (increase) in trade receivables

157(698)

Decrease (increase) in inventories

75(4,064)

Increase (decrease) in trade payables

1,872(950)982(2,014)

Increase (decrease) in accrued consumption taxes
Decrease (increase) in other assets

17(75)

Increase (decrease) in other liabilities

1,279(656)

Other, net

512

Subtotal

28,388

10,1521011

Interest and dividends received
Proceeds from insurance income

297-Interest paid(119)(112)

Payments associated with disaster loss

(84)

-Income taxes paid

(3,711)(8,870)Net cash provided by (used in) operating activities

24,781

1,180

9

(Millions of yen)Previous Fiscal Year
(From April 1, 2020
to March 31, 2021)

Current Fiscal Year
(From April 1, 2021
to March 31, 2022)

Cash flows from investing activities
Purchase of property, plant and equipment(3,870)423(3,408)48

Purchase of intangible assets

(87)

(150)

Payments for retirement of non-current assets

(75)

(56)

Payments for asset retirement obligations

(119)

(57)

Payments of leasehold and guarantee deposits

(160)
328

(50)
177

Decrease (increase) in investments and other assets

65

2

Net cash provided by (used in) investing activities(3,495)(3,496)

(660)

(660)

Repayments of long-term borrowings(1,496)(1,084)

Repayments of lease liabilities(1,108)(1,241)

Proceeds from sale of property, plant and equipment

Proceeds from refund of leasehold and guarantee deposits

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Purchase of treasury shares(0)-Dividends paid

(1,227)(1,570)Net cash provided by (used in) financing activities(4,492)(4,556)

Net increase (decrease) in cash and cash equivalents

16,793(6,872)

Cash and cash equivalents at beginning of period

21,29738,091

Cash and cash equivalents at end of period

38,091

31,21810