Nitori Holdings Co., Ltd.
Financial Results Presentation
for the First Quarter of FY2020

June 25 , 2020
TSE1st.&Sapporo Code : 9843

Overview of Consolidated Financial Results（Billions of Yen）

Q1 FY2020

Q1 FY201921 Feb-20 May 2020

21 Feb-20 May 2019(to sales)

Change(to sales)

Net sales

173.7－Gross profit

97.7

56.3%

90.1 53.9%

7.5 108.4％

SG&A expenses

60.5

34.8%

59.7 35.7%

0.7 101.3％

Operatingincome

37.2

21.4%

30.4 18.2%

6.7 122.3％

Ordinary income

37.3

21.5%

30.7 18.4%

6.6 121.6％

Profitattributable toowners of parent

25.5

14.7%

20.3 12.2%

5.1 125.4％

Copyright 2020 Nitori Holdings All Rights Reserved

167.3(YOY)■不許複製印刷配布－6.4 103.9％

2

Consolidated Balance Sheets（Billions of Yen）

20 May2020

Current assets

20 Feb2020

Change

280.3

263.5

16.7

167.5

159.1

8.3

57.9

65.5

▲7.5

415.8

419.6

▲3.7

(Property, plant and equipment)

305.4

307.3

▲1.9

(Investments and other assets)

24.8

24.5

0.2

Total assets

696.1

683.2

12.9

Current liabilities

87.8

97.0

▲9.1

(Accounts payable - trade)

18.7

19.7

▲1.0

(Short-term loans payable)

2.7

2.70.0Non-Current liabilities

23.625.3▲1.6(Long-term loans payable)

3.0

4.0

▲0.9

Total liabilities

111.5

122.3

▲10.8

Total net assets

584.6

560.8

23.8

Total liabilities and net assets

696.1

683.2

12.9

(Cash and deposits)(Inventory)

Non-Current assets

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Major factors
on changes
Accounts receivable +11.0

Accounts payable - other (6.4)
Income taxes payable (7.5)

Net income +25.53YOY changes in comparable stores（％）

【Sales , YOY】

※Sales = Sales based on orders

115

107.5

110102.7

105

104.9
102.0

10099.09590（％）

94.3【No. of Customers・
Average Spend per Customer , YOY】

115

107.1

110
105
10090

103.1

99.1

99.6

101.8

2017.52018.5

99.9

99.1
100.3

95

103.1

105.7

96.5

95.2
2015.52016.5

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2019.52020.5

4

Consolidated Sales
Net sales
167.3（Billions of Yen）

173.7 (103.9%）【Net sales】

AmountStore sales(Global)¥150.8bil. 101.1%

E-commerce

YOY¥16.8bil. 140.9%

B to B &Renovation Sales¥3.0bil. 103.0%

Rent income¥1.8bil. 102.5%

Others¥1.2bil.

Total

84.5%

¥173.7bil. 103.9%

Sales comp. by region
Hokkaido

4.5％ (0.3)pt &Shikoku

Chugoku

7.7％ +0.0pt

Tohoku5.6％ (0.1)pt Okinawa

Kyusyu&9.0％ +0.1pt

27.9％ (1.6)pt EC

9.7％ +2.5pt

Kanto

Q1 FY2019

Q1 FY2020

Copyright 2020 Nitori Holdings All Rights Reserved

Hokuriku&Koshinetsu

5.3％ (0.1)pt Renovati

1.7％Chubu&Tokai9.9％ +0.1pt Overseas

2.3％ (0.6)pt

14.6％ +0.1pt Others

1.8％ (0.2)pt

Kinki■不許複製印刷配布

B to B &on

0.0pt

5

Gross profit ・ SG&A expenses【SG&A】（Billions of Yen）

【Gross profit】

97.7

90.1

Q1 FY2019（108.4%）Q1 FY2020【Gross profit margin】+1.8pt53.9%

FX impact
applied to thepurchase（¥111.23/$⇒¥104.60/$）

Personnel

FX impact
applied to theinventory¥18.3bil. 105.5%

10.6% +0.2pt¥9.2bil.

98.7%

5.3% (0.3)pt

Deliverycharge¥7.8bil.

99.7%

4.5% (0.2)pt

Advertising¥3.8bil.

90.0%

2.2% (0.3)pt

Outsourcing¥4.9bil. 103.0%

2.9% (0.0)pt

Store fixtures
expense¥0.5bil. 122.1%

0.3%

0.0pt

Depreciation¥3.6bil.

Capital investment¥3.6bil.

COGSreduction

Q1 FY2019
Copyright 2020 Nitori Holdings All Rights Reserved

Ratio toChange
sales

YOY

Rents+0.7pt▲0.2ptAmount+0.1pt

56.3%（+2.4pt）

OthersQ1 FY2020■不許複製印刷配布

6No. of stores as of 20 Mar. 2020

６19

１5DECO HOME

９8
4

No. ofstores

Prefecture

No. ofstores

PrefectureNo. ofstores

Hokkaido

23

Yamanashi

3Shimane

2

Hokkaido23

Ishikawa

5

Hiroshima

15Aomori

6Toyama4

Yamaguchi

8 (+1)Akita

6Fukui3Kagawa4(Taiwan)

Iwate

4

Hokuriku & Koshinetsu

34

Tokushima

3３０

Yamagata

5

Shizuoka

15 (+1)

Kochi

3

Miyagi

10

Aichi

28

Ehime

5

Fukushima

7Mie

9

Chugoku & Shikoku

Tohoku

38

Gifu

10

Fukuoka

24

Tokyo49

Chubu & Tokai

62 (+1)Oita

5Kanagawa

31

Osaka

40 (+2)Miyazaki

4

Saitama34

Kyoto

14Saga5Chiba31 (+1)Nara

7 (+1)

Nagasaki

4Gunma8Hyogo32 (+1)

Kumamoto

8Tochigi

10Shiga

10 (+1)

Kagoshima

7Ibaraki

14Wakayama

5Okinawa

5Kanto177 (+1)

Kinki

108 (+5)

Kyushu & Okinawa

62

Niigata

9Tottori

2Nagano10Okayama

7Stores(+8)

４３6Prefecture(USA)

２(China)

３４

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Japan

49 (+1)553(+8)7

Major indicators of management efficiency（1）unitTarget

1

Return on assets％

Over 3.75％

○5.4

4.9

5.5

5.2

6.5

2

Total asset turnoverTimes

Over 0.5×0.25

0.27

0.28

0.30

0.323

Ordinary income
margin％Over 10％

○21.5

18.4

19.5

17.6

20.2

4Earnings per share¥

Over ¥25○226.7 181.2 176.0 170.9 152.9

5 Return on equity％

Over 3.75%

○4.5

4.0

4.4

4.8

5.1

6Equity ratio％

Over 60％

○84.0

82.4

80.4

80.7

78.5

7

Interest coverageTimesOver 20○

1,717 1,203 1,431 1,559 1,843

8

Sales growth rate％

Over 10％

×3.9

6.1

6.9

7.614.9）

9

Ordinary income
growth rate％

Over 10％○21.60.1

17.9

△6.0

29.4

Ratio of gross profit to％Over 48％

○56.3

53.9

55.2

53.3

54.4

Ratio of break-even％

Under 80％

○57.6

61.9

60.8

62.8

58.5

GroupIndicatorThree months

Sco Numpeber（10 sales

11 point to sales

2020.5

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2019.5 2018.5 2017.5 2016.5■不許複製印刷配布

8

Major indicators of management efficiency (2)Sco Numpeber

Indicator

unitTarget

2020.52019.5 2018.5 2017.5 2016.5

Sale of furniture and home furnishing

12 Sales per tsubo

K Over ¥950K○13 Stock turnover

Times

Over 9×5.5

5.7

6.0

6.26.6Times

Over 2.9

○3.4

3.7

3.9

4.3

4.5

Ratio of profit％

Over 20％

○38.0

34.6

35.0

32.8

37.3

Ratio of real estate cost％

Under 25％

○19.2

20.6

20.0

20.3

18.8

17 cost to gross profit

Ratio of sales promotion％

Under ６％

○4.7

5.7

6.7

6.4

6.0

18 Labor productivity

M

Over ¥10M○

19 Sales floor per labor

Tsubo

Over 60

×36.0

33.9

34.1

33.3

36.1

20 tsubo

KOver 150K

○22.0

18.9

19.5

17.0

20.0

21 Stock per tsubo

K

Under 90K

○9.0

9.18.2

8.0

7.5

30～35

○

32.8

32.8

32.6

32.6

32.6

Operating assets

14 turnover

15 distribution

16 to gross profit

Operating income per

22 Average age of laborResults （○won/×lost）
Copyright 2020 Nitori Holdings All Rights Reserved

112.4 111.3 109.4 107.1 108.1

2,210 1,979 2,016 1,847 2,064○18×4 ○16×6 ○17×5 ○16×6 ○18×4■不許複製印刷配布

9TOPICSSummary
Mar: The furniture and home appliances for new life were good results.
April and May: 110 stores were temporarily closed.
The results of not closed stores and EC biz covered the closed stores
more than enough.
✓✓Improving an average spend per customer: The people who decided what to buy came tothe store.
Improving a purchasing ratio via nitori website: Contributed to increase awareness andomni-channel strategy implementation.

1st quarter Monthly sales status
Sales (%)
Comparable

storesNumber ofCustomers (%)

All storesComparable

storesAverage spend perCustomer (%)

All storesComparable

storesAll storesMar.

110.9％

114.0％

113.1％

118.3％

98.1％

96.4％

Apr.

96.0％

98.1%

99.0%

102.0%

97.0%

96.2%

May.

100.6%

101.9%

106.7%

107.6%

94.3%

94.7%

Total

102.0%

104.1%

105.7%

108.5%

96.5%

96.0%

Notes :Including in the store which temporarily closed or shorten business hours.
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11

COVID-19 ～Measures for store～
Restricted biz hours
4/29(水)～5/31(日)Social distancing✓ Declared a state ofemergency for COVID-19・Starting a Call-Center at AM11・Providing the information by SMS

Regulation at store✓ Putting on a mask
✓ Visiting people 2 or less

Limited Service・Temporarily stopped of customize a curtain・Restrictive providing the item information

Promotion of ordering on EC
websiteCopyright 2020 Nitori Holdings All Rights Reserved■不許複製印刷配布

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COVID-19 ～Measures for employee～
Retailer exists for customers
The extension of the nationwide state of emergency

Allowance for employee

Helping from H/Q for store

For all part-time employee in japan

Ongoing, almost all member at⚫ Special benefit （ Term: April 7th～May 31st）

H/Q support the operations of⚫ Special benefit （ When it is not possible
to work at a nearby other store）

For all full-time employee in japan⚫ Paid leave（Max 5 days）⚫ Providing a mask（50 per person）

the store.
Total

1,5000 people

Remarks
Above a number include same people
Therefore, not uniqueness numbers

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COVID-19 ～Sales trend by category～Interior décor
Existing store YoY（％）

Furniture

EC BizEC biz YoY（％）

110 stores were temporarily closed

160%

310%

150%

270%

Temporarilyclosed(8th April)

140%
130%

230%

120%

190%

110%
100%

150%

90%

The extension of thenationwide state ofemergency(5 th May)

80%
70%

110%
70%

3/30

4/6

Declare a state ofemergency(7 th April)

4/13

4/20

4/27

Nationwide state ofemergency(16 th April)

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5/4

5/11

5/18（week）

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COVID-19 ～ Impact of staying at home～
Home Office Furniture
The home office furniture that
simply- design or easily to assemble
it were popular.
Other features, the desk with anarrow width was preferred.
(width 47”)In the chairs , The item that with
comfortable seat orcool design were sold well.
In terms of price, both high pricerange and low price range wereselected.

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COVID-19 ～ Impact of staying at home～
Simply-storage furniture
The item easily to assemble waspopular.

N in BOX was so popular because ofhigh-flexibilities to combinate.
So it is prepared in multiple colors is
also a strength.
COLABO has two strengths.
To be combined according to purpose.
To be combined for basket.

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COVID-19 ～ Impact of staying at home～
Dining and Kitchen item
Japanese dishes and Oven-safe dishes
and Wood dishes were so popular.

Glass and Bottle andTray with gripping were so popular.

All kitchen item was so popular.

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Coordinate proposals

We launch two concept of spring & summer collection
Coordination to enjoy colorful colors
andCoordination that combines N cool

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18

E-Commerce

（％）
150

Sales YoY

140

133.4%

130

119.7%

124.9%

140.9％
119.8%

120110

‘16.5

‘17.5

‘18.5

‘19.5

‘20.5

Below these were only website productsthat most popular sales expansion in 1Q⚫ Compact pocket
coil couch sofa(width 5.6”)⚫ Folding chair(no delivery fee)

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Deco home
Number of Store trend

17
3 4 8

29 3951627894 98

For new life
Floral Romance(to enjoy spring)

In the Breeze（to enjoy summer’s ray）
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N＋（N plus）
For working women
To turn out bothluxury andrelaxation

For all womenLaunching
The new innerwith cooling function
This material have a function
with touch the body cooling
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21

Opening stores
Nabari (Mie Pref.)DH AEON-MALL MakuhariNew-city (Chiba Pref.)Kaohsiung (Taiwan)

DH Foleo Otsu-Ichiriyama

Copyright 2020 Nitori Holdings All Rights Reserved(Shiga Pref.)■不許複製印刷配布

Nitori EXPRESS AEON-MALLKoube-Kita (Hyogo Pref.)22

Developed human resources for the future
We have a long term mission and a vision which are basis of our growing.
Human resources is KSF, he make it possible to advance to the next stage.
Actually our plan is further acceleration through an autonomous career designsystem.
OJT/Off-JTStudying
via APP

Assessment

CareerPlanA pooledhumanresources
information

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Promotion

CareerChange23

Store roll-out plan in FY 2020Total

StoreTaiwanUSA

China

End ofQ1
FY2020４５１９８４３０２

３４ ６１９Openings+２１+１６+６+６+１+２ +５２End ofQ4
FY2020４７２１１４１０３６３

３６ ６７１China＋２USA＋１Taiwan＋６Japan＋４３

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24Plan in FY 2020

（Billions of Yen）

FY2020
1st half of Plan
Annual Plan
(to Sales)(to Sales)(YoY)

Net sales

318.9

Gross profit

180.3

56.5% 103.6% 371.0

56.8% 104.7%

SG&A expenses

122.6

38.4% 103.5% 258.8

39.6% 104.8%

Operating income

57.7

18.1% 103.8% 112.2

17.2% 104.4%

Ordinary income

57.9

18.2% 102.4% 113.3

17.3% 103.4%

Profit attributable
To owners of parent

39.1

12.3% 106.1%

75.7

11.6% 106.0%-99.2% 653.2(YoY)－101.7%

No modification of plan
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【見通しに関する注意事項】
本資料では、当社および関係会社の将来についての計画や戦略、業績に関する予想および見通しの記述が含まれています。これらの記述は過去の事実ではなく、当社が現時点で把握可能な情報から判断した仮定および所信に基づく見込みです。また、経済動向や個人消費、市場需要、税制や諸制度などに関わるリスクや不確実性を含んでいます。それゆえ実際の業績は当社の見込みとは異なる可能性のあることをご承知おきください。
本資料には監査を受けていない参考数値が含まれており、金額は億円未満切捨て、それ以外を四捨五入で表示しております。

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26