Non-Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
[Japanese GAAP]May 8, 2020
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 25, 2020
Scheduled date of filing annual securities report: June 26, 2020
Scheduled date of commencing dividend payments: June 26, 2020
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, 2020
(April 1, 2019 to March 31, 2020)(1) Operating Results (Percentages refer to changes from the corresponding period of the preceding fiscal year.)Net sales
Fiscal year ended
March 31, 2020
March 31, 2019

Millions of yen

Operating income% Millions of yen

217,753
223,246

(2.5)
(1.0)

8,319
6,997

Net income pershare

Diluted net
income per share

Yen

Yen

Fiscal year ended
March 31, 2020
March 31, 2019173.01
157.65

Ordinary income

Net income%Millions of yen%

Millions of yen%

18.9(8.6)

8,964
7,525

19.1
(7.0)

4,941
4,518

9.4
3.2

Return on equity

Ratio of ordinary
income to total
assets

%

%

3.5
3.3

-Ratio ofoperating income
to net sales

4.0
3.4%

3.8
3.1

(2) Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio%

Net assets per shareYen

142,324
As of March 31, 2020221,037
138,540
As of March 31, 2019
222,501(Reference) Equity: As of March 31, 2020: ¥142,324 million
As of March 31, 2019: ¥138,540 million

64.4
62.3

4,982.87
4,850.37(3) Cash Flows

Fiscal year ended
March 31, 2020
March 31, 2019

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

11,885
7,115(5,415)(3,607)(5,368)(7,537)

21,297
20,1961

2. Dividends

Fiscal year ended
March 31, 2019
March 31, 2020
Fiscal year ending
March 31, 2021(Forecast)

Annual dividends
1st2nd
3rdYear-end
quarter-end quarter-end quarter-end

Total
dividends

Total

PayoutNet asset
ratio
payout ratio

Yen

Yen

Yen

Yen

Yen

Millions of yen

%%

-

19.00
19.00

-

19.00
20.00

38.00
39.00

1,085
1,113

24.1
22.5

0.8
0.8

-

20.00

-

20.00

40.00

3. Projected Operating Results for the Fiscal Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)(% indicates changes from the previous corresponding period.)
Net salesFirst half(Cumulative)
Full year

Millions of yen

Operating income% Millions of yen

Ordinary income% Millions of yen

Netincomeper share

Net income%Millions of yen%

Yen

116,000

0.3

5,400

0.4

5,700

0.9

3,300

0.6

115.53218,000

0.1

8,400

1.0

9,000

0.4

5,000

1.2

175.05* 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: No
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 stock):
March 31, 2020: 29,784,400 shares
March 31, 2019: 29,784,400 shares2) Total number of treasury stock at the end of the term:
March 31, 2020: 1,221,670 shares
March 31, 2019: 1,221,594 shares
3) Average number of shares during the term:
Fiscal year ended March 31, 2020: 28,562,781 sharesFiscal year ended March 31, 2019: 28,664,581 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 Operating
Results, etc. (1) Overview of Operating Results for the Current Fiscal Year” on page 3 of the attacheddocument.
2

3. Financial Statements and Primary Notes(1) Balance Sheets(Millions of yen)
End of Previous Fiscal year
(March 31, 2019)
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, net
VehiclesAccumulated depreciation
Vehicles, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, netLand
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
Other
Total 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, 2020)

23,0883,312
57,619
2940
104
515
(1)
85,581

24,1902,952
57,068
7905
101
515
(2)
85,738123,298(58,800)
64,49722,398(17,402)
4,996
92(92)
09,951(8,516)
1,435
48,685
11,649(8,923)
2,726
1,003
123,344

125,493(61,473)
64,01922,759(18,079)
4,680
5(5)
0
10,331(9,037)
1,293
48,58012,444(9,957)
2,487
239
121,301

2,444
85
47
198
139
2,915

2,481
137
47
287
105
3,059

393
210
1
550
3,175
6,470
52
6(10)
10,660

240
21
0
1
448
3,674
6,521
33
7(10)
10,937

(Millions of yen)
End of Previous Fiscal year
(March 31, 2019)
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 obligations
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
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Provision for retirement benefits
Provision for retirement benefits for directors (andother officers)
Asset retirement obligations
Other
Total non-current liabilitiesTotal liabilities

4

End of Current Fiscal year
(March 31, 2020)

136,920
222,501

135,298
221,037

16,412
14,081
22,465
1,896
1,083
4,260
1,071
205
1,123
310
35
1,010
26
1,199
3,861
46
243
69,333

15,10413,012
20,905
1,496
996
3,904
2,237
1,204
922
338
44
1,003
28
1,179
2,112
119
331
64,939

2,914
1,726
3,162

1,793
1,746
3,148

975
5,405
442
14,62883,961

1,028
5,620
435
13,77378,713

(Millions of yen)
End of Previous Fiscal year
(March 31, 2019)
Net assets
Shareholders' equityShare capital
Capital surplus
Legal capital surplus
Total capital surpluses
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

5End of Current Fiscal Year
(March 31, 2020)

3,538

3,538

4,223
4,223

4,223
4,223

37

37627
121,000
11,332
132,996(2,350)138,407620
124,000
12,195
136,853(2,350)142,263132
132
138,540
222,50160
60
142,324
221,037

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

Net sales
Cost of sales
Beginning merchandise inventory
Cost of purchased goods
Total
Ending merchandise inventory
Total cost of sales
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
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Rental costs
Loss on disaster
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Insurance claim income
Reversal of asset retirement obligations
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on disaster
Retirement benefits for directors (and other officers)
Loss on cancellation of rental contracts
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit6Previous Fiscal Year
(From April 1, 2018
to March 31, 2019)
223,246

Current Fiscal Year
(From April 1, 2019
to March 31, 2020)
217,753

56,263
152,949
209,21257,619151,592
71,65364,655
6,997

57,619145,496203,116
57,068146,047
71,70563,386
8,319

2
9
356
56
140
169
209
944

0
10
474
52
177
289
155
1,161

148
152
103
11
416
7,525

139
184
161
31
516
8,964

347
1,020
22
1,390

20
20

63
692
809
290
217
29
2,103
6,812
2,344(50)
2,293
4,518

97
1,170
28
49
1,345
7,639
3,164(467)
2,697
4,941

(3) Statements of Changes in Net Assets
Previous Fiscal Year (From April 1, 2018 to March 31, 2019)(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

37630

118,000

Total
retainedearnings

10,918

129,586

3－(3,000)－Dividends of surplus(1,108)(1,108)

Profit

4,518

4,518

Changes during period
Provision of reserve for tax
purpose reduction entry of
non-current assets(3)

Provision of general reserve

3,000

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

－－－－

(3)

3,000

413

3,410

Balance at end of period

3,538

4,223

4,223

37

627

121,000

11,332

132,996

Shareholders’ equity
TreasurysharesBalance at beginning of period(0)

Valuation and translation adjustments

Total shareholders’equity

Valuationdifference on
available-for-salesecurities

Total valuation andtranslation
adjustments

Total net assets

137,347

156

156

137,503

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

Provision of general reserve－－

Dividends of surplus(1,108)(1,108)

Profit

4,518

4,518

(2,350)(2,350)Purchase of treasury shares(2,350)Net changes in items otherthan shareholders' equity

(23)

(23)

(23)

Total changes during period(2,350)

1,060

(23)

(23)

1,036

Balance at end of period(2,350)138,407132

132

138,5407Current Fiscal Year (From April 1, 2019 to March 31, 2020)(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

37627

121,000

Total
retainedearnings

11,332

132,9966－(3,000)－

Dividends of surplus(1,085)(1,085)

Profit

4,941

4,941

Changes during period
Provision of reserve for tax
purpose reduction entry ofnon-current assets(6)

Provision of general reserve

3,000

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

－－－－

(6)

3,000

863

3,856

Balance at end of period

3,538

4,223

4,223

37620

124,000

12,195

136,853

Shareholders’ equity
Total shareholders’equityTreasurysharesBalance at beginning of period

Valuation and translation adjustments(2,350)138,407

Valuationdifference on
available-forsale securities
132

Total valuation andtranslation
adjustments

Total net assets

132

138,540

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

Provision of general reserve－－

Dividends of surplus(1,085)(1,085)

Profit

4,941

4,941

(0)

(0)

Purchase of treasury shares(0)

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

(72)

(72)

(72)

(0)

3,856

(72)

(72)

3,784

(2,350)142,263

60

60

142,3248

(4) Statements of Cash Flows(Millions of yen)Previous Fiscal Year
(From April 1, 2018
to March 31, 2019)

Current Fiscal Year
(From April 1, 2019
to March 31, 2020)

Cash flows from operating activities
Profit before income taxes

6,812

7,639

Depreciation

5,896

5,925

Impairment loss

692

1,170

Amortization of intangible assets

148

165

Amortization of long-term prepaid expenses

68

64

Loss on retirement of property, plant and equipment

63

97

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

(347)

(20)

Other extraordinary loss (income)

2977

Reversal of asset retirement obligations(22)-Increase (decrease) in allowance for doubtful accounts(0)1

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)

(1)

(13)

(578)

52

(4)

1

Increase (decrease) in provision for bonuses

(45)

(7)

Increase (decrease) in provision for point card certificates

(45)

(20)

Interest and dividend income

(12)

(10)

(1,020)-Interest expenses

148

139

Loss due disaster809-

Decrease (increase) in trade receivables(404)159

Insurance claim income

Decrease (increase) in inventories(1,740)500

Increase (decrease) in trade payables(763)(2,371)

Increase (decrease) in accrued consumption taxes

(226)

1,102

Decrease (increase) in other assets

52

86

Increase (decrease) in other liabilities

213

(462)

Other, net(4)1

Subtotal

9,719

14,280Interest and dividends received

10

10

Proceeds from insurance income

1,020

-

Interest paid

(150)

(141)

Payments associated with disaster loss

(380)

-

Income taxes paid

(3,103)(2,263)

Net cash provided by (used in) operating activities

7,115

11,8859

(Millions of yen)Previous Fiscal Year
(From April 1, 2018
to March 31, 2019)

Current Fiscal Year
(From April 1, 2019
to March 31, 2020)

Cash flows from investing activities
Purchase of property, plant and equipment(4,236)805(5,143)111

Purchase of intangible assets

(119)

(181)

Payments for retirement of non-current assets

(56)

(89)

Proceeds from sales of property, plant and equipment

Payments for asset retirement obligations

(89)

(85)

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits

(102)
259

(181)
101

Decrease (increase) in other investments

(67)

52

(3,607)(5,415)(165)(1,560)Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings-500

Repayments of long-term borrowings(2,724)(2,021)

Repayments of lease obligations(1,189)(1,202)

Purchase of treasury shares(2,350)(0)

Dividends paid

(1,108)(1,084)

Net cash provided by (used in) financing activities(7,537)(5,368)Net increase (decrease) in cash and cash equivalents(4,029)

1,101

Cash and cash equivalents at beginning of period

24,22620,196

Cash and cash equivalents at end of period

20,196

21,297

10