Non-Consolidated Financial Results
for the Six Months Ended September 30, 2023
[Japanese GAAP]
October 27, 2023
Company name: NAFCO Corporation
Stock exchange listing: Tokyo Stock Exchange
Code number: 2790
URL: https://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 10, 2023
Scheduled date of commencing dividend payments: December 1, 2023
Availability of supplementary briefing material on quarterly financial results: AvailableSchedule 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, 2023 (April 1, 2023 to September
30, 2023)(1) Operating Results (cumulative)(Percentages refer to changes from the corresponding period of the preceding fiscal year.)Net sales
Six months ended
September 30, 2023
September 30, 2022

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%101,033
104,629

(3.4)
(3.1)

4,033
6,622

(39.1)
(6.5)

4,209
6,831

(38.4)
(6.5)

2,487
4,203

(40.8)(7.2)

Earnings pershare
Six months ended
September 30, 2023
September 30, 2022

Operating profit

Diluted earnings
per share

Yen

Yen

87.07
147.18-(2) Financial Position
Total assets
Millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

163,553
As of September 30, 2023
239,190
161,813
As of March 31, 2023
238,408(Reference) Equity: As of September 30, 2023: ¥163,553 millionAs of March 31, 2023: ¥161,813 million

68.4
67.9

5,726.14
5,665.24

2. Dividends
Annual dividends
1st2nd3rdYear-endquarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024
(Forecast)

Total

Yen

Yen

Yen

Yen

Yen

-28.00

-

28.00

56.00

-

29.00
-

29.00

58.00

(Note) Revision from the most recently announced dividend forecast: None
3. Projected Operating Results for the Fiscal Year Ending March 31, 2024 (April 1, 2023 to March 31, 2024)(% indicates changes from the previous corresponding period.)
Earnings
Net sales
Operating profit
Ordinary profit
Profitper share
Millions of yen% Millions of yen% Millions of yen% Millions of yen

Full year
200,000 (1.1)
7,000 (24.1)
7,425 (23.2)(Note) Revision from the most recently announced projected operating results: None

4,120%Yen(26.9)

144.24* 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 shares):
September 30, 2023: 29,784,400 shares
March 31, 2023: 29,784,400 shares2) Total number of treasury shares at the end of the term:
September 30, 2023: 1,221,850 shares
March 31, 2023: 1,221,812 shares
3) Average number of shares during the term:
Six months ended September 30, 2023: 28,562,556 shares
Six months ended September 30, 2022: 28,562,588 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, 2023)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Other
Allowance 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 equipmentIntangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Accounts payable - otherNotes payable - facilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Asset retirement obligations
Contract liabilities
OtherTotal current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits
Provision for retirement benefits for directors (andother officers)
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

1

End of Second Quarter ofCurrent Fiscal Year
(September 30, 2023)

36,123
4,446
63,553
1,629(4)105,748

40,133
4,007
60,717
1,685(3)
106,540

65,814
48,952
128
4,115
119,0103,312
10,337
132,660
238,408

65,14549,221
174
4,539
119,080
3,215
10,353
132,649
239,190

27,14718,925
99
1,670
4,236
3,183
1,042
31
－
3,264
3,588
63,19025,83718,750
58
1,729
4,662
2,803
1,084－
3
3,044
3,854
61,82983,020－
3,028

686

724

6,454
3,234
13,404
76,594

6,477
3,576
13,80775,637

(Millions of yen)
End of Previous Fiscal year
(March 31, 2023)
Net assets
Shareholders’ equity
Share capital
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, 2023)

3,538
4,223
156,308(2,351)
161,718

3,538
4,223
157,995(2,351)
163,406

94
94
161,813238,408

146
146
163,553
239,190

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

Net sales
Cost of sales
Gross profit
Operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Rental income from buildings
Insurance claim income
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Rental costs on real estate
Loss on disaster
OtherTotal non-operating expensesOrdinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
System failure countermeasure costs
Total extraordinary losses
Profit before income taxes
Income taxes
Profit3Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
104,629
68,11636,512
189
36,701
30,0786,622

Six Months Ended
September 30, 2023
(From April 1, 2023
to September 30, 2023)
101,033
67,011
34,021
177
34,19930,165
4,033

0957
261
31
65
425

0953
260
28
62
414

53
108
43
10216
6,831

611085217239
4,209

53
53
51
159
6,672
2,468
4,203

143
117
－261
3,947
1,460
2,487

(3) Statements of Cash Flows(Millions of yen)
Six Months Ended
September 30, 2023
(From April 1, 2023
to September 30, 2023)

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of intangible assets
Amortization of long-term prepaid expenses
Loss on retirement of property, plant and equipment
Increase (decrease) in allowance for doubtful accounts
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 other officers)
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

46,672
2,728
53
121
27
53
0(16)

3,947
2,768
117
121
25
143
(1)
8

12

37(28)

(31)

36(9)
53
(78)
(1,991)
15
966
(54)
300
13
8,877
9(53)
(296)
8,538

41(10)
61(26)
2,833(1,309)
675
(57)
428
(24)
9,749
10(56)(1,408)8,293

Six Months Ended
September 30, 2022
(From April 1, 2022
to September 30, 2022)
Cash flows from investing activitiesPurchase of property, plant and equipment
Purchase of intangible assets
Payments for retirement of non-current assets
Payments for asset retirement obligations
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Decrease (increase) in investments and other assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Purchase of treasury shares
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 Ended
September 30, 2023
(From April 1, 2023
to September 30, 2023)(1,477)
(19)
(50)
－
(24)
17
(81)
(1,636)(2,429)
(22)
(36)
(30)
(25)
22
(53)
(2,575)

(330)
(349)
(661)
－(799)(2,141)
4,760
31,21835,978

(175)
(49)
(737)
(0)
(799)
(1,761)
3,956
33,23037,186