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Financial Results Briefing Material
for the Three Months Ended June30, 2021
July 26, 2021
NAFCO Corporation

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Summary of Financial Results for
the Three Months Ended June 30, 2021
Amidst the backlash from the previous fiscal year,
both sales and profits continue to be in a difficult situation■The impact of an immediate surge in demand for consumption fromstaying at home, etc. in the previous year has almost receded in themarket. Consequently, we have had a difficult time mainly in the sectorof household goods.
■Meanwhile, the main sectors of materials, DIY, and gardening
merchandises showed steady growth.
■Our efforts to strengthen our product appeal, which we have beenpromoting thus far, have led to the continuous growth of gross profit
margin.
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Financial Results for the Three Months Ended June 30, 2021
(Millions of yen)Three months
ended June 30,2020% of sales

Three months ended
June 30, 2021

% of sales

YoY Change(reference)

Net sales

65,142100.0%

56,238100.0%

86.3%

Gross profit

22,59934.7%

19,565

34.8%

86.6%

Operating grossprofit‐‐

19,64834.9%‐

Selling, general andadministrative
expenses

15,02723.1%

15,19127.0%

101.1%

Operating profit

7,572

11.6%

4,456

7.9%

58.9%

Ordinary profit

7,672

11.8%

4,541

8.1%

59.2%

Profit

4,722

7.2%

2,817

5.0%

59.7%

*The Company has applied “Accounting Standard for Recognition” and others since the beginning of the fiscal year ending March 31, 2022.
The figures before the application of such Standard and others are presented based on the disclosed figures before the application.
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Balance Sheets(Millions of yen)
Fiscal Year Ended
March 31, 2021

Three months ended
June 30, 2021

Change From
the End of thePrevious Fiscal Year

Total assets

236,164

235,590(574)

Current assets

102,419

101,538(881)

40,98437,982(3,001)

133,744

134,051+306

119,942

119,625(316)

83,342

82,174(1,167)

Interest-bearing liabilities

22,03821,499(539)

Of which, short-term borrowings

20,24520,080(165)1,084

885(199)

708

533

(174)

152,821

153,415+593

Cash and deposit ratio (%)

17.4

16.1

Ratio of interest-bearing liabilities (％)

9.3

9.1

Equity ratio (%)

64.7

65.1

Of which, cash and deposits

Non-current assets
Of which, property, plant and equipment

Liabilities

Of which, current portion of long-term borrowings
Of which, long-term borrowings

Net assets

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Trends in Existing Stores
Net sales of existing stores compared to previous year (%)
Record-breaking heatwave

FY3/22 cumulative (existing stores)
Net sales︓87.8％
Customers: 84.5％
Customer average: 103.8％

Declaration of a stateof emergency
Heavy rain of July
2020
Demand due to the approach of Typhoon Haishen(Oct. 2019: last-minute demand ahead of theconsumption tax hike)

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun.
Sales
Customers
Customeraverage

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Sales by Quarter
Householdgoods

Materials, DIY and gardening goods

OthersFurniture and home fashion goods(Millions of yen)
Figures within bars are percentages

17.9%
19.0%

26.0%

20.1%

22.7%

26.4%

21.8%

27.0%
27.3%

27.3%

Three months

42.5%

Six months

47.7%
41.2%

Nine months

46.1%

40.7%

Fiscal year

24.1%

25.0%

28.0%

46.4%

18.4%

22.3%
20.4%

28.7%

19.2%

Three months

Six months

41.6%

Nine months

49.7%
43.4%Fiscal year

ended Jun. 2019 ended Sep. 2019 ended Dec. 2019 ended Mar. 2020 ended Jun. 2020 ended Sep. 2020 ended Dec. 2020 ended Mar. 2021

Three months
ended Jun. 2022

Fiscal YearEndingMarch 2022
*The Company has applied “Accounting Standard for Recognition” and others since the beginning of the fiscal year ending March 31, 2022. The figures before the application of such
Standard and others are presented based on the disclosed figures before the application.

Fiscal year ended March 2020

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Factors for a Change in Operating Profit(Three months ended June 30, 2021)
Selling, general andadministrative expenses
Total +163

Gross profit
Total (2,951)(Millions of yen)

Materials, DIY andgardening merchandisesHousehold goods(1,215)

7,572

Furniture andhome fashion
goods(1,082)Others

(428)
(309)

Advertisingexpenses

Operatingrevenue＋82

Depreciation
andamortization

Personnel
expenses

＋183

(27)

Utilities
expenses(12)

Others＋18＋24,456
Fiscal year ended March 2021
Operating profit
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Fiscal year ending March 2022
Operating profit
66
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Trends in Gross Profit Margin(%)

34.8%

Global financial crisis
September 2008

Consumption tax hike to 8%

Consumption tax hike to 10%

April 2014

October 2019

FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21

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Q1
FY3/22

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Trends in Sales Composition by ProductHouseholdgoods

Materials, DIY andgardening goods

Fiscal year
ended Mar.
2015

Fiscal year
ended Mar.
2016

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Fiscal year
ended Mar.
2017

Fiscal year
ended Mar.
2018

Furniture and homefashion goods

OthersFiscal year
ended Mar.
2019

Fiscal year
ended Mar.
2021

Fiscal year
ended Mar.
2020

Threemonths
ended Jun.
2021
88
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Trends in Private Brand Ratio(%)

Company total
Private Brand ratio

Materials, DIY andgardening goods

Householdgoods

Furniture and home fashion

Achieved the full-yeartarget (40%) as of theend of three months
ended Jun. 2021

Fiscal year
endedMar. 2018
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Fiscal year
ended
Mar. 2019

Fiscal year
endedMar. 2020

Fiscal year
ended
Mar. 2021

Threemonths
ended
１QJun.
2021

Fiscal year ending
Mar. 2022(Full-year target)
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HOME CENTER and HOME FASHION STORE

Air Conditioners That Are Easy to Install

Spot air conditioner
Spot air conditioner with flexible
exhaust air duct.

Portable airconditioner

Mini spot airconditioner
Mini spot air conditioner
which is small butpowerful.

Portable air conditioner
which is small butpowerful.

1.6KW window airconditioner
Window air conditioner
which you can use
without installation work.

⼯事不要な簡単設置タイプが⼈気

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Air conditioner fanwith LCD
Portable air
conditioner withcasters to be moved
easily.
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Outdoor Equipment

Full Moon ChairKING Chair

Its design concept is “the chair
which you can sit cross-leggedon.” It is designed to let yourelax into it.

A voluminous chair which
you can relax into.

Bonfire equipment which is popular in its healing effect of its
1/f fluctuation.

Swedish Torch
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Fire Star Grill

Meshed Bonfire Stand
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Garden Chairs

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Desks & Chairs

Corner Desk Greed

Desk with Rack N Jeunesse
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Vintage Chair Rival

Desk N Jeunesse
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HOME CENTER and HOME FASHION STOREPrivate Brand Products (Furniture)
Product Development That Does Not Compromise on Quality
Jointly Developed with Top Manufacturers

Marta series

Arena series■Modern Nordic design.
■French seam with thick
piping enclosing the seamallowance.

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■You can choose the covering material andwood part according to your preference.
■Specially processed Italian leather is used.

X473 Strada Brown

X577 Strada Wine

X495 Strada Olive

X521 Strada Rose

X496 Strada BlackX494 Strada Cream

X467 Strada Beige

X468 Strada Camel

NutshellMalt Brown

Mocha Brown

MellowNaturalMild OakCafé Brown

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E-commerce Approaches
NAFCO online store (home center)

TWO-ONE STYLE online shopping (furniture and home fashion)

Service enhancement by development of digital catalogues

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Role in Disasters
Number of municipalities that haveconcluded agreements

283 municipalities
As of June 30, 2021
* Municipalities include prefectural police, etc. (number ofapplications in process is excluded)

Number of municipalities with which wehave entered agreements for the supplyof disaster supplies

Online or telephone orders
are available.
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Fiscalyear
ended
March
2017

Fiscalyear
ended
March
2018

Fiscalyear
ended
March
2019

Fiscalyear
ended
March
2020

Fiscalyear
ended
March
2021

Fiscalyear
endingMarch
2022(As ofJune 30)

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HOME CENTER and HOME FASHION STOREStore Openings
TWO-ONE STYLE Mi Nara store

Store nameOpening

Location

Store style

New store

TWO-ONESTYLE
Mi NaraAprilNara

Furniture and homefashion store

Expansion

Nobeokaminami

April

MiyazakiCombination store

Renovation

Nakabaru

JuneSaga

Home center

Nobeoka-minami store

Nakabaru store

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Number of Stores by Business Type
Small stores of300 tsubo
Furniture-onlystoresHI stand-alone
storesCombination
storesTotal stores

KansaiTohokuChugoku

Kanto
KyushuAll Rights Copying NAFCO Co.,Ltd.

Chubu
Shikoku
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HOME CENTER and HOME FASHION STOREForecast for the Fiscal Year Ending March 31, 2022
(Millions of yen)

Fiscal year endingMarch 2022
(full-year cumulativeplan)% of Sales

Fiscal yearended
March 2021
(full-yearcumulativeresults)

Fiscal yearended
March 2020
(full-yearcumulativeresults)

Net sales

226,400

100.0％

234,578

217,753

Operating profit

18,791

8.3%

18,221

8,319

Ordinary profit

19,491

8.6%

18,918

8,964

Profit11,4005.0%

11,688

4,941*The Company has applied “Accounting Standard for Recognition” and others since the beginning of the fiscal year ending March 31, 2022.
The figures before the application of such Standard and others are presented based on the disclosed figures before the application.
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HOME CENTER and HOME FASHION STOREThis document is intended solely for the purpose of providing
information to investors.
We will disclose information as needed at an appropriate timedepending on the external environment and the progress ofbusiness performance.
IR news is also updated on our website as needed.
● For inquiries about this document, please contact:

Kobayashi, Accounting Division, NAFCO Corporation
Phone: +81-93-521-7030
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2020