Non-Consolidated Financial Results
for the Six Months Ended September 30, 2018
[Japanese GAAP]
November 9, 2018
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 filing quarterly securities report: November 9, 2018
Scheduled date of commencing dividend payments: December 7, 2018
Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly 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 Six Months Ended September 30, 2018
(April 1, 2018 to September 30, 2018)(1) Operating Results (cumulative)(Percentages refer to changes from the corresponding period of the preceding fiscal year.)Net sales
Six months ended
September 30, 2018
September 30, 2017

Six months ended
September 30, 2018
September 30, 2017

Millions of yen

115,268
117,335

Operating income% Millions of yen

(1.8)
(1.6)

Net income%Millions of yen%

4,860 (14.2)
5,663 (2.1)

5,104
5,895

(13.4)(2.1)

Net income per

Diluted net
income per share

YenYen88.81
105.63-shareOrdinary income

Millions of yen%

2,554 (18.8)
3,146 19.1

(2) Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio%

Net assets per shareYen

137,207
As of September 30, 2018
222,943
137,503
As of March 31, 2018
224,507(Reference) Equity: As of September 30, 2018: ¥137,207 million
As of March 31, 2018: ¥137,503 million

61.5
61.2

4,803.72
4,616.67

2. Dividends
Annual dividends
1st
2nd
3rdYear-end
quarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
Fiscal year ending
March 31, 2019
(Forecast)

Total

Yen

Yen

Yen

Yen

Yen

-

19.00

-

19.00

38.00

-

19.00
-

19.00

38.00

(Note) Revision from the most recently announced dividend forecast: None
3. Projected Operating Results for the Fiscal Year Ending March 31, 2019 (April 1, 2018 to March 31, 2019)(% indicates changes from the previous corresponding period.)
Net sales
Millions of yen

Operating income% Millions of yen%

Ordinary income
Millions of yen

Net income
per share

Net income%Millions of yen

Full year
226,000 0.2
8,800 15.0
9,000 11.2
(Note) Revision from the most recently announced projected operating results: None

4,700%

Yen

7.3

163.97* Notes:(1) Accounting policies adopted specifically for the preparation of quarterly financial statements: Yes(Note) For details please refer to “2. Quarterly Financial Statements and Primary Notes (4) Notes on Quarterly
Financial Statements (Accounting policies adopted specifically for the preparation of quarterly financialstatements)” on page 9 of the attached document.
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the term (including treasury stock):
September 30, 2018: 29,784,400 shares
March 31, 2018: 29,784,400 shares2) Total number of treasury stock at the end of the term:
September 30, 2018: 1,221,594 shares
March 31, 2018: 294 shares
3) Average number of shares during the term:
Six months ended September 30, 2018: 28,766,356 shares
Six months ended September 30, 2017: 29,784,106 shares* These financial results are outside the scope of the quarterly review by a certified public accountant or an audit
corporation.
* Explanation of the proper use of financial results forecast and other notes(Cautionary note on forward-looking statement)
The earnings forecasts and other forward-looking statements provided herein are based on information that iscurrently available to the Company and certain assumptions that the Company deems reasonable, and the Company

does not in any way guarantee the achievement of the projections. Actual results may differ significantly from theforecasts due to various factors. For details on the assumptions of the earnings forecasts and points to be noted inusing the earnings forecasts, please refer to “1. Qualitative Information on Quarterly Financial Results (3)Explanation of Forecast of Performance Results and Other Forward-Looking Information” on page 3 of theattached document.

2. Financial Statements and Primary Notes(1) Balance Sheets(Millions of yen)
End of Previous Fiscal year
(March 31, 2018)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Accounts payable – otherNotes payable – facilities
Provision for bonuses
Provision for directors’ bonuses
Provision for point card certificates
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

1End of Second Quarter ofCurrent Fiscal Year
(September 30, 2018)27,1182,849
56,2631,611(1)87,84125,8702,598
56,3171,755(1)86,54070,50447,937329
4,201
122,973
2,898
10,793
136,666
224,507

69,051
48,980717
4,012
122,762
2,914
10,725
136,402
222,943

31,265
22,630
2,724
1,838
4,198
1,723
1,055
31
1,245
43
3,267
70,024

31,10022,630
2,227
1,880
5,351
2,002
1,077
－
1,221
13
3,093
70,598

4,810
3,164
1,554
5,271
2,179
16,98087,0043,737
3,221956
5,303
1,917
15,13685,735

(Millions of yen)
End of Previous Fiscal year
(March 31, 2018)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
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

2

End of Second Quarter ofCurrent Fiscal Year
(September 30, 2018)

3,538
4,223
129,586(0)137,347

3,538
4,223
131,575(2,350)136,986

156
156
137,503
224,507221221
137,207
222,943

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission fee
House rent income
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent cost of real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Insurance income
Reversal of asset retirement obligations
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on disaster
Directors’ retirement benefits
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitSix Months Ended
September 30, 2017
(From April 1, 2017
to September 30, 2017)
117,335
78,62438,71033,0475,663

Six Months Ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)
115,268
78,08337,18432,324
4,860

15
677
120
12
162
394

2
673
164
79
103
430

81
62
18
162
5,895

76
75
34
186
5,104

0
16－1794
267
22
384

91
669－－
18779
5,132
1,986
3,146

11311
691
290
16
1,321
4,167
1,612
2,554

3

(3) Statements of Cash Flows(Millions of yen)
Six Months Ended
September 30, 2017
(From April 1, 2017
to September 30, 2017)

Six Months Ended
September 30, 2018
(From April 1, 2018
to September 30, 2018)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of intangible assets
Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment
Loss (gain) on sales of property, plant and equipment
Other extraordinary loss (income)Reversal of asset retirement obligations
Increase (decrease) in allowance for doubtful accounts

5,132
3,012
669
91
3691
(0)
18－
(0)

4,167
2,862
311
75
34
11(94)
16(22)(0)

Increase (decrease) in provision for retirement benefits

117

57

(12)

(598)

(34)
55

(31)
21(9)

(24)

(21)
(16)
81－

(9)
(267)
76
691

(105)

(25)

2,301(462)
(549)
125
455
(11)
10,96319
16(77)－(1,081)
9,840

(419)
(162)
153
(144)
1,015
(23)
7,673
7267
(76)
(115)
(1,572)
6,183

Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point cardcertificatesInterest and dividend income
Insurance income
Interest expenses
Loss due disaster
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividend income received
Proceeds from insurance income
Interest expenses paid
Payments for loss on disaster
Income taxes paid
Net cash provided by (used in) operating activities

4

(Millions of yen)
Six Months Ended
September 30, 2017
(From April 1, 2017
to September 30, 2017)
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for retirement of non-current assets
Payments for asset retirement obligations
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

5Six Months EndedSeptember 30, 2018
(From April 1, 2018
to September 30, 2018)(3,996)
0(59)
(89)
(29)
(32)
31
3(4,172)(2,512)
171
(51)
(11)
(29)
(38)
117
(33)
(2,387)(1,436)(696)－(565)(2, 698)
2,969
21,663
24,632(1,569)(612)(2,350)(565)(5,098)(1,301)
24,22622,924