Non-Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
[Japanese GAAP]May 11, 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 Annual General Meeting of Shareholders: June 28, 2018
Scheduled date of filing annual securities report: June 29, 2018
Scheduled date of commencing dividend payments: June 29, 2018
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, 2018 (April 1, 2017 to March 31, 2018)(1) Operating Results(Percentages refer to changes from the corresponding period of the preceding fiscal year.)Net sales
Fiscal year ended
March 31, 2018
March 31, 2017

Operating income

Millions of yen%

225,511231,040(2.4)
0.5Net income per%Millions of yen

7,654 (12.4)
8,733
0.3

Diluted net
income per share

share

Fiscal year ended
March 31, 2018
March 31, 2017

Millions of yen

Ordinary income

Net income%Millions of yen

8,093 (11.7)
9,170 (1.5)

Return on equity%

4,380 0.5
4,358 (16.2)

Ratio of ordinary
income to total
assetsRatio ofoperating income
to net sales

Yen

Yen%%

%

147.06146.33

-3.2
3.3

3.6
4.1

3.4
3.8

(2) Financial Position
Total assets

Net assets

Millions of yen

Millions of yen%

Yen

137,503134,20261.2
59.8

4,616.67
4,505.85

As of March 31, 2018
224,507
As of March 31, 2017
224,327(Reference) Equity: As of March 31, 2018: ¥137,503 million
As of March 31, 2017: ¥134,202 million

Equity ratio

Net assets per share(3) Cash Flows
Cash flows fromoperating activities

Fiscal year ended
March 31, 2018
March 31, 2017

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof the term

Millions of yen

Millions of yen

Millions of yen

Millions of yen

12,696
15,249(7,593)(12,828)(2,539)(1,287)

24,226
21,663

2. DividendsAnnual dividends
1st2nd3rdYear-endquarter-end quarter-end quarter-end

Total

Total
dividends

Payoutratio

Net asset
payoutratio

Fiscal year ended

YenYen

Yen

Yen

Yen

Millions ofyen%%March 31, 2017
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecast)

-

19.00
19.00

-

19.00
19.00

38.00
38.00

1,131
1,131

26.0
25.8

0.8
0.8

-

19.00

-

19.00

38.00

24.1

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

First half(Cumulative)
Full year

Operating income% Millions of yen

Ordinary income

Net income
per share

Net income%

Millions of yen%

Millions of yen%

Yen

(1.1)

5,700(3.3)

3,100(1.5)

104.089,000 11.2

4,700

7.3

157.80116,300(0.9)

5,600

226,000

0.2

8,800 15.0

* 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, 2018: 29,784,400 shares
March 31, 2017: 29,784,400 shares2) Total number of treasury stock at the end of the term:
March 31, 2018: 294 shares
March 31, 2017: 294 shares
3) Average number of shares during the term:
Fiscal year ended March 31, 2018: 29,784,106 sharesFiscal year ended March 31, 2017: 29,784,106 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 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. Overview of Operating Results, etc. (1) Overview of Operating
Results for the Current Fiscal Year” on page 3 of the attached document.
- The Company plans to hold a financial results briefing for institutional investors and analysts on May 14 and 15,
2018. The materials that will be used at the briefing are scheduled to be posted on our website promptly after theirdisclosure.

3. Financial Statements and Primary Notes(1) Balance Sheets(Millions of yen)
End of Previous Fiscal year(March 31, 2017)
AssetsCurrent assets
Cash and bank deposits
Accounts receivable - trade
Merchandise in inventory
Supplies
Prepaid expenses
Deferred income tax assets
Accrued income
Short-term loans receivable
Current assets, other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings (net)
Structures
Accumulated depreciation
Structures (net)
Transportation equipment
Accumulated depreciation
Transportation equipment (net)
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures (net)Land
Leased assets
Accumulated depreciation
Leased assets (net)
Construction in progress
Total property, plant and equipment
Intangible assets
Land lease rights
SoftwareTelephone subscription rights
Leased assets
Intangible assets, otherTotal intangible assets
Investments and other assets
Investment securities
Investment in affiliates’ securities
Investments
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred income tax assets
Lease deposits/guarantee deposits
Construction support money
Other1

End of Current Fiscal year(March 31, 2018)24,554
2,697
57,179
9
1,042
1,046
148
500
572
(3)
87,748

27,1182,849
56,263
4
967
1,062
114
－
526
(1)
88,903

118,751(52,904)
65,84621,801(15,859)
5,941
230
(229)
1
8,949
(7,478)1,471
46,453
10,091(6,973)
3,118
1,092
123,924

121,148(56,102)
65,04522,179(16,720)
5,458
199
(198)
0
9,385
(8,060)1,324
47,937
10,844(7,967)
2,876
329
122,973

2,399
103
47
321
116
2,988

2,447
70
47224
109
2,898

351
21
0

427
21
0

2

1

601
1,8286,681
184
6483
2,052
6,629
1196

Allowance for bad debts
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities
Trade notes payable
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable
Accrued income taxes payable
Consumption taxes payable
Advance deposits received
Deposits received
Revenue received in advanceReserve for bonuses
Reserve for directors’ bonuses
Provision for point card certificates
Notes payable - facilities
Asset retirement obligationsCurrent liabilities, otherTotal current liabilities
Fixed liabilities
Long-term borrowings
Lease obligations
Allowance for retirement benefits
Reserve for directors’ retirement benefits
Asset retirement obligations
Fixed liabilities, otherTotal fixed liabilities
Total liabilities

2(11)
9,666
136,579
224,327(10)
9,731
135,604
224,507

16,256
14,817
22,630
3,002
1,286
4,358
1,439
1,431
1,145
304
20
1,080
34
1,250
4,311
－249
73,618

16,21015,055
22,630
2,724
1,119
4,198
1,838
503
1,070
301
27
1,05531
1,245
1,723
43
245
70,024

4,572
2,224
2,950
1,541
5,062
154
16,506
90,124

4,810
1,882
3,164
1,554
5,271
297
16,98087,004

(Millions of yen)
End of Previous Fiscal year
(March 31, 2017)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Capital reserve
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for advanced depreciation of noncurrent assets
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Other valuation adjustments on marketablesecurities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

3

End of Current Fiscal year
(March 31, 2018)

3,538

3,538

4,223
4,223

4,223
4,223

37

37

633

630

115,000
10,667
126,338(0)
134,099

118,000
10,918
129,586(0)137,347

103

156

103
134,202224,327

156
137,503
224,507(2) Statements of Income
Statements of Income(Millions of yen)

Net sales
Cost of sales
Inventories – at the beginning of the term
Purchases of merchandise
Total cost of merchandise
Inventories – at the end of the term
Total cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expense
Delivery expense
Transfer to allowance for bad debt
Directors’ compensations, salaries and allowances
Employee bonuses
Provision of reserve for directors’ bonuses
Provision of reserve for bonuses
Provision for point card certificates
Expense for retirement benefits
Provision of allowance for directors’ retirement benefits
Legal welfare expense
Land and house rent
Depreciation and amortization
Heat, light and water
Security expense
Taxes other than income taxes
Other expense
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Charges for ordering paperwork
Commission income
Non-operating income, otherTotal non-operating income

4

Previous Fiscal year
(From April 1, 2016
to March 31, 2017)
231,040

Current Fiscal year
(From April 1, 2017
to March 31, 2018)
225,51160,889151,602212,491
57,179155,31275,72757,179151,235
208,41456,263
152,151
73,360

5,061
2,661
1
19,703
1,134
34
1,080
(87)
654
52
2,725
9,448
6,747
3,431
1,560
2,570
10,213
66,994
8,733

4,239
2,533
(1)
19,464
1,056
31
1,055
(4)
615
52
2,691
9,429
6,386
3,653
1,520
2,613
10,36765,705
7,654

29
8
218
52
154
298
762

25
8265
54
145
297
797

(Millions of yen)Previous Fiscal year
(From April 1, 2016
to March 31, 2017)
Non-operating expenses
Interest expense
Cost of rental income
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of fixed assets
Insurance received
Reversal of asset retirement obligations
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Loss on disaster
Other
Total extraordinary losses
Income before income taxes
Income tax, inhabitant tax and enterprise tax
Deferred income taxes
Total income taxes
Net income

5Current Fiscal year
(From April 1, 2017
to March 31, 2018)
171
88
64
325
9,170

159
135
63
358
8,093

186－
88

1
16
14
32

48
959
1,048
26
2,082
7,176
2,988
(170)
2,818
4,358

122
680
－
115
917
7,208
3,091(262)
2,828
4,380

(3) Statements of Changes in Net Assets
Previous Fiscal Year (From April 1, 2016 to March 31, 2017)(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at beginning of theterm
Changes of items during theterm
Reserve for advanced
depreciation of noncurrent assets
General reserve
Dividends of surplus
Net income
Net changes of items otherthan shareholders’equityTotal changes of items during
the term
Balance at the end of the term

Capitalreserve

3,538

Total capitalsurplus

4,223

4,223

Balance at the end of the term

37638

112,000

(4)
3,000

Total
retainedearnings

10,436

123,1114－(3,000)(1,131)
4,358(1,131)
4,358－－－－－(4)

3,000

231

3,226

3,538

4,223

4,223

37

633

115,000

10,667

126,338

Shareholders’ equity

Balance at beginning of theterm
Changes of items during theterm
Reserve for advanced
depreciation of noncurrent assets
General reserve
Dividends of surplus
Net income
Net changes of items
other thanshareholders’ equity
Total changes of items during
the term

Legalreserve

Retained earnings
Other retained earnings
Reserve for
Retained
advanced
General earnings
depreciation ofreserve
brought
non-current assets
forwardTreasurystock

Total shareholders’equity(0)130,872

Valuation and translation adjustments
Other valuation
Total valuation andadjustments ontranslation
marketableadjustments
securities
75

75

Total net assets

130,948－－－(1,131)
4,358－(1,131)
4,358
28

28

28

－

3,226

28

28

3,254

(0)

134,099103

103

134,2026

Current Fiscal Year (From April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders’ equity

Capitalstock

Balance at beginning of theterm
Changes of items during theterm
Reserve for advanced
depreciation of
non-current assets
General reserve
Dividends of surplus
Net income
Net changes of items
other thanshareholders’ equity
Total changes of items
during the term
Balance at the end of the term

3,538

Capital surplus

Retained earnings

Capitalreserve

Total
capitalsurplus

Other retained earnings
Reserve foradvanced
General reserve
depreciation of
non-current assets

4,223

4,223

Legal
reserve

37

Balance at the end of the term

115,000

Total retained
earnings

10,667

126,3383－

3,000(3,000)(1,131)
4,380－(1,131)
4,380

(3)

－－－－

(3)

3,000

251

3,248

3,5384,223

4,223

37630

118,000

10,918

129,586

Shareholders’ equity

Balance at beginning of theterm
Changes of items during theterm
Reserve for advanced
depreciation ofnon-current assets
General reserve
Dividends of surplus
Net income
Net changes of items
other thanshareholders’ equity
Total changes of items during
the term

633

Retainedearnings
brought
forwardTreasurystock

Total shareholders’equity(0)134,099

Valuation and translation adjustments
Other valuation
Total valuation andadjustments ontranslation
marketableadjustments
securities
103103

Total net assets

134,202－－－(1,131)
4,380－(1,131)
4,380
52

5252

－

3,2485252

3,300

(0)

137,347

156

156

137,5037

(4) Statements of Cash Flows(Millions of yen)Previous Fiscal year
(From April 1, 2016
to March 31, 2017)

Current Fiscal year
(From April 1, 2017
to March 31, 2018)

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

7,176
6,500
959
179
78
48
(1)
26－
10

7,208
6,144
680
186
72
122
(1)
115
(14)
(1)

Increase (decrease) in reserve for retirement benefits

196

213

49

13

0
20(87)
(38)
(86)
171
1,048
42
3,305
(1,178)
1,653
(35)
55
6
20,101
34
86
(171)
(602)
(4,199)15,249

(3)
(24)
(4)
(34)
(16)
159
－
(226)
920
191(862)
142
427
(25)
15,37835
16(153)－(2,580)12,696

Increase (decrease) in reserve for directors’ retirement
allowances
Increase (decrease) in reserve for directors’ bonuses
Increase (decrease) in reserve for bonuses
Increase (decrease) in reserve for point card certificatesInterest and dividend income
Insurance income
Interest expense
Loss on disaster
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in consumption taxes payable
Decrease (increase) in other assets
Increase (decrease) in other liabilities
OtherSubtotal
Interest and dividend income receivedProceeds from insurance income
Interest expenses paid
Payments for loss on disaster
Income taxes paid
Net cash provided by (used in) operating activities

8

(Millions of yen)Previous Fiscal year
(From April 1, 2016
to March 31, 2017)
Cash flows from investing activities
Payments for acquisition of tangible fixed assets
Proceeds from sale of tangible fixed assets
Payments for acquisition of intangible fixed assets
Payments for disposal of fixed assets
Payments for asset retirement obligations
Collection of loans receivable
Payments for leasehold deposits and guarantee moneyProceeds from collection of leasehold deposits andguarantee money
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term debt
Payment for repayment of long-term debt
Repayments of lease obligations
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 term
Cash and cash equivalents at the end of term

9Current Fiscal year
(From April 1, 2017
to March 31, 2018)(12,856)
1(162)
(12)
(50)
－(85)

(7,985)
2(86)
(111)
(29)
500
(67)

194

79

142
(12,828)106(7,593)4,000(2,739)(1,416)(1,131)(1,287)3,000(3,039)1,133
20,52921,663

2,562
21,66324,226(1,368)(1,131)(2,539)