NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2008

Non-Consolidated Financial and Operating Results
for the Six Months Ended September 30, 2008
November 7, 2008
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 Interim Report: November 12, 2008
Date dividend payments scheduled to begin: December 5, 2008
(Amounts below one million yen are truncated.)
1. Financial and Operating Results for the Six Months Ended September 30, 2008
(April 1, 2008 through September 30, 2008)(1) Operating results(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%Six months ended
September 30, 2008
Six months ended
September 30, 2007

103,256

—

6,003

—

6,119

—

100,266

2.1

6,248

(10.2)

6,414(10.3)Net income
Millions of yen%

2,115—

71.07

71.06

3,432

(13.3)

115.37115.30Six months ended
September 30, 2008
Six months ended
September 30, 2007

Net income per share
Yen

Diluted net income per shareYen(2) Financial position
Total assets
Millions of yen

Net assets
Millions of yen

Six months ended
164,642
September 30, 2008
Year ended
158,590
March 31, 2008
(Reference) Shareholders’ equity:
September 30, 2008: ¥96,299 million
March 31, 2008:¥94,637 million

Equity ratio%

Net assets per share
Yen

96,29958.5

3,234.31

94,63759.7

3,180.64

End offiscal year

Full year2. Dividends(Record date)Year ended
March 31, 2008
Year ending
March 31, 2009
Year ending
March 31, 2009(forecast)End offirst quarter

Dividends per share (yen)End of
End ofsecond quarter
third quarter

—

15.00

—

15.00

30.00

—

16.50

——

——

——————

—

16.50

33.00

(Note) Changes in dividend forecasts during the quarter under review: None1

NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2008

3. Projected Operating Results for the Year Ending March 31, 2009 (April 1, 2008 through March 31, 2009)(Percentages refer to changes from the preceding fiscal year.)Net sales

Full year

Millionsof yen200,000%
2.2

Operating income

Ordinary income

Millionsof yen12,500Millionsof yen12,800%2.2%
2.5

Net income
Millionsof yen5,700(Note) Changes in projected operating results during the quarter under review: None

Net income
per share%Yen(14.9)

191.47

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—

4. Others(1) Application of simplified methods of accounting and accounting methods specific to the preparation of quarterly financial
statements: Yes(2) Changes in accounting principles, processes, presentation methods, etc., related to the preparation of quarterly consolidated
financial statements (recorded in changes to important items that form the basis for preparation of quarterly consolidated financialstatements)
1) Changes due to revisions to accounting standards, etc.: Yes
2) Changes other than 1): No(3) Number of outstanding shares (ordinary shares)
1) Number of shares outstanding as of the end of period (including treasury shares)
First half ended September 30, 2008: 29,774,400
Fiscal year ended March 31, 2007:29,754,400
2) Number of treasury shares as of the end of period
First half ended September 30, 2008: 122
Fiscal year ended March 31, 2008:483) Average number of shares during the period (six-month periods ended September 30)
First half ended September 30, 2008: 29,769,290
First half ended September 30, 2007: 29,754,400

Notes: Cautionary Statement Regarding Performance Forecasts, Other Special Notes
1. There are no revisions to the projected operating results announced on May 9, 2008, although net income pershare has been amended to reflect exercise of new share subscription rights. The forecasts and future
projections stated above have been prepared on the basis of the information available as of the date ofannouncement of this summary information, and the actual results could differ significantly from forecast
figures depending on a variety of factors.
2. In the current consolidated fiscal year, the Company began applying the “Accounting Standard for Quarterly
Financial Reporting” (Financial Accounting Standard No. 12) and the “Guidance on Accounting Standard for
Quarterly Financial Reporting” (Financial Accounting Standard Implementation Guidance No. 14). The
quarterly consolidated financial statements were also prepared in accordance with the “Regulations on
Quarterly Consolidated Financial Statements.”
2NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2008

4. Interim Financial Statements(1) Interim Balance Sheet(Millions of yen)
End of current
interim term
(September 30, 2008)ASSETS
Current assets
Cash and bank deposits
Accounts receivable―trade
Merchandise in inventory
Current assets, other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures (net)LandConstruction in progress
Property, plant and equipment, other (net)Total property, plant and equipment
Intangible assets
Investments and other assets
Total fixed assets
Total assets
LIABILITIESCurrent liabilities
Notes and accounts payable—trade
Short-term borrowings
Current portion of long-term borrowings
Accrued income taxes payable
Accounts payable
Notes payable to equipment
Reserve for bonuses
Current liabilities, otherTotal current liabilities
Fixed liabilities
Long-term borrowings
Allowance for retirement benefits
Reserve for directors’ retirement benefits
Fixed liabilities, otherTotal fixed liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
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 previous
fiscal year
(March 31, 2008)

18,2671,318
45,0672,097(14)66,736

15,8881,640
44,9772,025(17)64,51544,367
37,131742
1,442
83,684
1,529
12,691
97,905
164,642

43,092
34,871
9221,157
80,043
1,514
12,516
94,074
158,590

30,566
12,430
2,392
1,870
3,413
2,505
1,044
1,154
55,37827,17011,430
2,063
3,030
2,850
2,396
962
1,768
51,671

7,496
3,266
1,665
534
12,964
68,342

7,117
3,285
1,633
244
12,28063,952

3,532
4,217
88,546(0)96,296

3,521
4,206
86,877(0)
94,6052
2
96,299164,642

32
32
94,637
158,590

NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2008

(2) Interim Statements of Income(Millions of yen)
Six Months Ended
September 30, 2008
(April 1, 2008, toSeptember 30, 2008)
103,256
71,26831,98725,983
6,003

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Rental income
Non-operating income, otherTotal non-operating income
Non-operating expenses
Interest expense
Cost of rental income
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Reversal of allowance for doubtful accounts
Gain on sale of fixed assets
Total extraordinary income
Extraordinary losses
Loss on valuation of merchandise
Impairment loss
Loss on disposal of fixed assets
Loss on sale of fixed assets
Total extraordinary losses
Income before income taxes
Income taxes and others
Net income

396135
104
58
343
165
55
5227
6,119
30
3
1,604
621
220
2,248
3,874
1,759
2,115

4

NAFCO Corporation (2790) Non-Consolidated Financial andOperating Results for the Six-Month Period Ended September 30, 2008

(3) Interim Statement of Cash Flows(Millions of yen)
Six Months EndedSeptember 30, 2008
(April 1, 2008, toSeptember 30, 2008)
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss on fixed assets
Amortization of goodwill
Amortization of intangible fixed assets
Loss on amortization of long-term prepaid expenses
Loss on disposal of tangible fixed assets
Loss on disposal of intangible fixed assets
Loss (gain) on sale of tangible fixed assets
Increase (decrease) 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
Increase (decrease) in reserve for bonuses
Dividend and interest income
Interest expense
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
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
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
Proceeds from sale of investment securities
Payments for disposal of fixed assets
Payments for leasehold deposits and guarantee money
Proceeds from collection of leasehold deposits and guaranteemoney
Decrease (increase) in other investments
Net cash used in investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term debt
Payments for repayment of long-term debt
Payments for repayment of lease obligations
Proceeds from share issuancePayments for purchase of treasury stock
Cash dividends paid
Net cash provided by 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
5

3,874
1,765
621
1052
32
22
0(0)
(3)
(18)
32(38)
82(45)
165
(46)
(97)
3,395
(49)
(65)
5
9,696
37(164)(2,918)6,650(5,238)
0(88)
0(0)
(166)
27(114)(5,578)1,000
1,800(1,090)
(0)
22(0)
(446)
1,283
2,356
12,825
15,182