NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2007

Non-Consolidated Financial and Operating Results
for the Six Months Ended September 30, 2007
November 16, 2007
Company name
Code number

NAFCO Corporation
2790

Listed on
URL: http://www.nafco.tv

JASDAQ

Representative:
Contact person:

Katsuyoshi Fukamachi, President and CEO
Kanji Muraoka, Managing Director & General Manager, Accounting Division
TEL +81-93-521-7030
Scheduled date for submission of Semiannual Report: December 21, 2007
Date dividend payments scheduled to begin: December 7, 2007
(Amounts below one million yen are truncated.)
1. Financial and Operating Results for the Six Months Ended September 30, 2007
(April 1, 2007 through September 30, 2007)(1) Operating results
Six months ended(Percentages refer to changes from the corresponding period of the preceding fiscal year.)Net sales
Operating income
Ordinary income
Millions of yen%
Millions of yen%
Millions of yen%

September 30, 2007

100,266

2.1

6,248

(10.2)

6,414(10.3)

September 30, 2006

98,156

2.1

6,961

4.2

7,150

4.3

Year ended
March 31, 2007

194,748—

12,351—12,686—

Six months ended

Net income
Millions of yen%

Net income per share
Yen

Diluted net income per share
Yen

September 30, 2007

3,432(13.3)

115.37115.30

September 30, 2006

3,961

13.5

133.13133.04

Year ended
6,896—
231.79March 31, 2007
(Reference) Equity in net income (losses) of companies accounted for under the equity method
September 30, 2007: －September 30, 2006: －March 31, 2007: －231.63(2) Financial position
Six months ended

Total assets
Millions of yen

Net assets
Millions of yen

Equity ratio%

September 30, 2007
September 30, 2006

154,672

91,87159.4

3,087.67

149,027

86,36358.0

2,902.53

88,90457.6

2,987.95

Year ended
154,305
March 31, 2007
(Reference) Shareholders’ equity:
September 30, 2007: ¥91,871 million
September 30, 2006: ¥86,363 million
March 31, 2007: ¥88,904 million

1

Net assets per shareYen

NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2007

(3) Cash flows
Cash flows fromoperating activities
Millions of yen

Six months ended

Cash flows frominvesting activities
Millions of yen

Cash flows fromfinancing activities
Millions of yen

Cash and cash equivalents
at the end of the term
Millions of yen

September 30, 2007

2,977

(3,714)(820)

11,298September 30, 2006

7,275

(3,409)1,440

10,380Year ended
March 31, 2007

13,178(8,255)2,859

12,856

2. Dividends
Dividends per share
Interim end
Year-end
Full year
Yen
Yen
Yen

(Record date)Year ended
March 31, 2007
Year ending
March 31, 2008 (actual)
Year ending
March 31, 2008 (forecast)

13.50

13.50

15.00

——

15.00

27.00
30.00

3. Projected Operating Results for the Year Ending March 31, 2008 (April 1, 2007 through March 31, 2008)(Percentages refer to changes from the preceding fiscal year.)Net sales

Full year

Millionsof yen201,000%
3.2

Operating income

Ordinary income

Millionsof yen13,368Millionsof yen13,742%
8.2%
8.3

Net income
Millionsof yen7,200

Net assets
per share%

Yen

4.4

241.98

4. Others(1) Changes in the method, procedure and presentation of accounting for the preparation of interim consolidated
financial statements (recorded in changes to important items that form the basis for preparation of interim
consolidated financial statements):Changes due to revisions to accounting standards: Yes
Other changes: No(2) Number of outstanding shares (common stock)(1) Number of outstanding shares(including treasury stock)(2) Treasury stock

September 30, 2007

29,754,400—

September 30, 2006

29,754,400—

March 31, 2007

29,754,400—

Cautionary Statement Regarding Performance Forecasts
The forecasts and future projections in this report have been produced based on the information available as ofthe date of announcement of this summary information, and the actual results could differ from forecast figuresdepending on a variety of other factors which may occur hereafter.

2

NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2007

4. Interim Financial Statements(1) Interim Balance Sheet
End of previous interim term
(September 30, 2006)
Account Item

Millions of yen

Composition(%)

End of current interim term
(September 30, 2007)
Millions of yen

Composition(%)

End of previous fiscal year
(March 31, 2007)
Millions of yen

Composition(%)（Assets）
I. Current Assets
1 Cash and bank deposits

14,58014,283

15,9322 Accounts receivable―trade

1,322

1,362

1,672

3 Merchandise in inventory

43,201

43,602

43,8394 Current assets, other

1,934

1,986

2,049

(20)

(14)

(17)

Allowance for doubtful
accounts
Total current assets

61,01840.9

61,22039.6

63,476

41.1

II. Fixed Assets
1 Property, plant andequipment(1) Buildings

35,96238,32736,379(2) Land

33,79434,79533,800(3) Property, plant andequipment, other

6,181

6,246

6,900

Total property, plant andequipment

75,93879,36977,0792 Intangible assets

1,398

1,524

1,452

3 Investments and other assets

10,671

12,557

12,297

Total fixed assets

88,00859.1

93,451

60.4

90,82958.9

Total assets

149,027100.0

154,672

100.0

154,305100.03NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2007

End of previous interim term
(September 30, 2006)
Account Item

Millions of yen

Composition(%)

End of current interim term
(September 30, 2007)
Millions of yen

End of previous fiscal year
(March 31, 2007)

Composition(%)

Millions of yen

Composition(%)(Liabilities)
I Current Liabilities
1 Trade notes payable17,036

17,785

16,4582 Accounts payable—trade

11,04010,078

12,8343 Short-term borrowings

9,030

9,430

10,0304 Current portion of long-termborrowings

2,763

2,017

2,483

5 Accrued income taxes payable

3,480

2,750

3,380

6 Reserve for bonuses

1,080

1,080

922

7 Reserve for directors’ bonuses

—

—

35

8 Notes payable to equipment

3,863

3,552

2,691

9 Current liabilities, other

4,904

4,735

5,866

Total current liabilities

53,19835.7

51,42933.2

54,701

35.5

II Fixed Liabilities
1 Long-term borrowings
2 Allowance for retirement
benefits
3 Reserve for directors’
retirement benefits
4 Fixed liabilities, otherTotal fixed liabilities
Total Liabilities

4,459

6,207

5,560

3,308

3,319

3,332

1,447

1,599

1,566

249

244

240

9,465

6.3

11,371

7.4

10,6996.962,66342.0

62,80040.6

65,40142.4

4

NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2007

End of previous interim term
(September 30, 2006)
Account Item

Millions of yenComposition(%)

End of current interim term
(September 30, 2007)

End of previous fiscal year
(March 31, 2007)

Composition(%)

Millions of yen

Millions of yen

Composition(%)(Net Assets)
I Shareholders’ equity
1. Capital Stock

3,521

2.4

3,521

2.3

3,521

2.3

4,206

2.7

2. Capital Surplus
Capital reserve

4,206

Total capital surplus

4,206
4,206

2.8

4,206
4,206

2.7

3. Retained Earnings(1) Legal reserve373737197

197

197

General reserve

71,00076,00071,000

Unappropriated retainedearnings

7,259

7,824

9,792

(2) Retained earnings, otherReserve fromunapppropriated profit

Total retained earnings

78,494

52.7

84,05954.3

81,027

52.5

Total shareholders’ equity

86,222

57.9

91,78759.3

88,756

57.5

II Valuation and translation
adjustments
Other valuation adjustments onmarketable securities
Total valuation and translation
adjustments

140

84

148

140

0.1

84

0.1

148

0.1

Total net assets

86,36358.0

91,871

59.4

88,904

57.6

Total Liabilities and Net
Assets149,027100.0

154,672

100.0

154,305100.0

5NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2007

(2) Interim Statements of Income
Six Months Ended
September 30, 2006
Account ItemSix Months Ended
September 30, 2007

Composition(%)

Millions of yen

Year Ended
March 31, 2007

Composition(%)

Millions of yen

Millions of yen

Composition(%)

I Net Sales

98,156100.0

100,266

100.0

194,748

100.0

II Cost of Sales

67,242

68.5

68,691

68.5

133,41268.5

Gross profit

30,914

31.5

31,57431.5

61,336

31.5

23,952

24.4

25,32625.3

48,984

25.2

Operating profit

6,961

7.1

6,248

6.2

12,351

6.3

IV Non-Operating Income

3620.4

487

0.5

737

0.4V Non-Operating Expenses

173

0.2

321

0.3

402

0.2

Ordinary profit

7,150

7.3

6,414

6.4

12,686

6.5

VI Extraordinary Income——30.0

196

0.1

VII Extraordinary Losses

00.0

239

0.2

440

0.2

7,150

7.3

6,177

6.2

12,443

6.4

5,546

2.9

6,896

3.5

III Selling, General and
Administrative Expenses

Income before income taxes
Income tax, inhabitant tax andenterprise tax

3,293

Deferred income taxes(104)

Net income

2,628
3,189

3.3

3,961

4.0

116

65,876
2,744

2.8

3,432

3.4(329)

NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2007

(4) Interim Statement of Cash Flows

Account ItemSix Months Ended
September 30, 2006

Six Months Ended
September 30, 2007

Year Ended
March 31, 2007

Millions of yen

Millions of yen

Millions of yen

I Cash Flows from Operating Activities
Income before income taxes

7,150

6,177

12,443

Depreciation and amortization
Impairment loss on fixed assets

1,574―1,700
98

3,292
249

Amortization of intangible fixed assets

6068125

Loss on amortization of long-term prepaid expenses
Loss on disposal of tangible fixed assets

38―

32
140

73
48

Loss on sale of tangible fixed assets
Loss on disposal of intangible fixed assets
Gain on sale of tangible fixed assets
Increase in allowance for doubtful accounts
Increase (decrease) in reserve for employees’ retirement
benefits
Increase (decrease) in reserve for directors’ retirement
allowances
Increase (decrease) in reserve for directors’ bonuses

―――
―

0―
―
5―
0(0)
936(13)

60

30

33

149
35

―

(35)

Increase in reserve for bonuses

175

158

17

Dividend and interest income(13)

(29)

(21)

Interest expense

123

143

264

Increase in trade receivables

(413)

(143)

(354)

Decrease in inventories
Increase (decrease) in trade payables
Increase (decrease) in consumption taxes payable

1,271
(675)

237
(1,428)

634
540

420

(323)

582

Increase in other assets
Increase (decrease) in other liabilities
Bonuses to directors paid

(70)
504
(35)

(37)
(431)
―

(64)
889
(35)

Subtotal

10,1796,355

18,939

10

27

16

(114)
(2,798)(151)(3,253)(291)(5,486)

7,275

2,977

13,178

Payments for acquisition of tangible fixed assets(3,594)(3,189)(7,844)

Proceeds from sale of tangible fixed assets
Payments for acquisition of intangible fixed assets—(52)0(140)

0(171)

Payments for disposal of fixed assets
Payments for leasehold deposits and guarantee money
Proceeds from collection of leasehold deposits and guarantee
money
Payments on loans
Decrease (increase) in other investments

—
(84)

(101)
(202)

(27)
(242)

27

111

50

—
295

—
(191)

(500)
479

(3,409)(3,714)(8,255)Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
II Cash Flows from Investing Activities

Net cash used in investing activities
III. Cash Flows from Financing Activities:
Increase (decrease) in short-term borrowings

2,300(600)

3,300

Proceeds from long-term debt

1,000

1,700

3,500

Payments for repayment of long-term debt
Cash dividends paid

(1,472)(386)(1,518)(401)(3,152)(788)

Net cash provided by (used in) financing activities

1,440(820)2,859

IV. Net increase (decrease) in cash and cash equivalents

5,306(1,557)

7,782

V. Cash and cash equivalents at beginning of term

5,073

12,856

5,072

VI. Cash and cash equivalents at end of term

10,38011,29812,856

7