Non-Consolidated Financial and Operating Results
for theYear Ended March 31, 2008
May 9, 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
Date scheduled for Ordinary General Shareholders Meeting: June 26, 2008
Date dividend payments scheduled to begin: June 27, 2008
Scheduled date for submission of securities report: June 27, 2008
(Amounts below one million yen are truncated.)
1. Financial and Operating Results for the Year Ended March 31, 2008
(April 1, 2007 to March 31, 2008)(Percentages refer to changes from the preceding fiscal year.)
Operating income
Ordinary income
Millions of yen%
Millions of yen%

(1) Operating results
Net sales
Millions of yen
Year ended
March 31, 2008
Year ended
March 31, 2007%

195,7420.5

12,225(1.0)

12,487(1.6)

194,748

2.4

12,351

9.2

12,686

7.6

Net income
Millions of yen%
Year ended
March 31, 2008
Year ended
March 31, 2007

Net income per share
Yen

Diluted net income per share
Yen

6,697(2.9)

225.08224.95

6,896

12.0

231.79231.63

Ratio of ordinary income
to total assets%
8.0

Ratio of operating income
to net sales
%
6.3

8.5

6.3

Return on equity
Year ended%
7.3
March 31, 2008
Year ended
8.0
March 31, 2007
(Reference) Equity gain (loss) under equity method:

March 31, 2008: －March 31, 2007: －(2) Financial position
Total assets
Millions of yen

Net assets
Millions of yen

Equity ratio%

Year ended
158,590
94,637
March 31, 2008
Year ended
154,305
88,904
March 31, 2007
(Reference) Shareholders’ equity:
March 31, 2008: ¥94,637 million

Net assets per share
Yen

59.7

3,180.64

57.6

2,987.95

March 31, 2007: ¥88,904 million(3) Cash flows

Year ended March31, 2008
Year ended March31, 2007

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Cash and cash
equivalents at the endof the term
Millions of yen

5,962(7,682)

1,688

12,825

13,178(8,255)2,859

12,8561

NAFCO Corporation Non-Consolidated Financial andOperating Results for the Year Ended March 31, 2008

2. Dividends(Record date)Year ended
March 31, 2007
Year ended
March 31, 2008
Year ending
March 31, 2009
(forecast)

Dividends per share
InterimYear-end
Full year
end
Yen
Yen
Yen

Total dividends(year)

Payout ratio

Net asset
payout ratio

Millions of yen

%%

13.50

13.50

27.00

803

11.6

0.9

15.00

15.00

30.00

892

13.3

1.0

16.50

16.50

33.00

—

17.2—

3. Projected Operating Results for the Year Ending March 31, 2009 (April 1, 2008 to March 31, 2009)

InterimFull year(% indicates percentage changes compared with the preceding full-year or interim period.)
OperatingOrdinaryNet income
Net sales
Net income
incomeincomeper share
Millions
Millions
Millions
Millions%%%%Yenof yenof yenof yenof yen(30.1)
101,370
1.1
6,566
5.1
6,730
4.9
2,400
80.66
200,000
2.2 12,500
2.2 12,800
2.5
5,700
(14.9)
191.562

NAFCO Corporation Non-Consolidated Financial andOperating Results for the Year Ended March 31, 2008

4. Financial Statements(1) Balance Sheets
Previous Fiscal year
(March 31, 2007)
Account Item

Amount(Millions of yen)

Current Fiscal year
(March 31, 2008)

Composition(%)

Amount(Millions of yen)

Year-on-Year ChangeComposition(%)

Amount(Millions of yen)

（Assets）
I. Current Assets
1 Cash and bank deposits

15,932

15,888(43)

2 Accounts receivable―trade

1,672

1,640

(32)

3 Merchandise in inventory

43,832

44,977

1,145

64

(2)

5 Prepaid expenses

786

863

76

6 Deferred income tax assets

909

743

(166)

7 Accrued income

65

75

10

8 Current assets, other288

339

51

Allowance for doubtful accounts

(17)

(17)

04 Supplies

Total current assets

63,47641.1

64,515

40.7

1,039

II. Fixed Assets
1 Property, plant and equipment(1) Buildings
Accumulated depreciation(2) Structures

61,264(24,885)

65,55936,379(26,978)

11,237

Accumulated depreciation(6,818)(3) Transportation equipment

224

Accumulated depreciation(181)(4) Tools, furniture, and fixtures

4,161

Accumulated depreciation(3,056)

4,294
38,581(2,092)

12,057
4,419(7,546)820
4,511(728)247
42(205)(3,487)

91

2342

(23)

4,602
1,104

2,201(0)441
1,115(430)

10(5) Land33,80034,871

1,071(6) Construction in progress

1,333

922(411)

Total property, plant andequipment

77,07950.0

80,043

50.4

2,964

2 Intangible assets(1) Goodwill―8080

1,073

1,13561(3) Computer software costs

315

238(77)(4) Telephone subscription rights

4646

―

(5) Intangible assets, other

1614(1)

Total intangible assets

1,452(2) Land lease rights

0.9

3

1,514

1.062

NAFCO Corporation Non-Consolidated Financial andOperating Results for the Year Ended March 31, 2008

Previous Fiscal year
(March 31, 2007)
Account Item

Amount(Millions of yen)

Current Fiscal year
(March 31, 2008)

Composition(%)

Amount(Millions of yen)Year-on-Year ChangeComposition(%)

Amount(Millions of yen)

3 Investments and other assets(1) Investment securities

516312(194)(2) Investment in affiliates’ securities

8080

―

(3）Investment

109(1)(4) Investment in affiliates

11―(5) Long-term loans receivable

500500―(6) Long-term prepaid expenses

853

805

(47)

(7) Deferred income tax assets

2,043

2,11976(8) Lease deposits/guarantee deposits

5,882

6,146263(9) Construction support money

1,226

1,351

124

(10) Long-term fixed deposits

1,100

1,100―9492(1)Allowance for bad debts

(12)

(11)

0

Total investments and other assets

12,2978.0

12,516

7.9

218

Total fixed assets

90,82958.994,074

59.3

3,245

Total assets

154,305

100.0

158,590

100.0

4,284

(11) Other4

NAFCO Corporation Non-Consolidated Financial andOperating Results for the Year Ended March 31, 2008

Previous Fiscal year
(March 31, 2007)
Account Item

Amount(Millions of yen)

Current Fiscal year
(March 31, 2008)

Composition(%)

Amount(Millions of yen)

Year-on-Year Change

Composition(%)

Amount(Millions of yen)

(Liabilities)
I Current Liabilities
1 Trade notes payable

16,45815,954(503)

2 Accounts payable—trade

12,834

11,216(1,617)

3 Short-term borrowings
4 Current portion of long-termborrowings
5 Accounts payable

10,03011,430

1,400

2,483

2,063(420)3,630

2,850(780)

6 Accrued income taxes payable

3,380

3,030(350)

7 Consumption taxes payable

748266(482)

8 Advance deposits received

1,051

966(84)

9 Deposits received

29033242

10 Revenue received in advance

1517

1

11 Reserve for bonuses

92296240

12 Reserve for directors’ bonuses

3538

2

13 Notes payable to equipment

2,691

2,396(295)

14 Current liabilities, other129

Total current liabilities

54,701

147
35.5

51,67117
32.6(3,029)

II Fixed Liabilities
1 Long-term borrowings

5,560

7,117

1,557

2 Allowance for retirement benefits
3 Reserve for directors’ retirement
benefits
4 Fixed liabilities, other

3,332

3,285

(46)

1,566

1,633

66

240

244

3

Total fixed liabilities

10,6996.912,2807.7

1,580

Total Liabilities

65,401

42.4

63,95240.3(1,448)

3,521

2.3

3,521

2.2―

4,206

2.7

4,206

2.7(Net Assets)
I Shareholders’ equity
1 Capital stock
2 Capital surplus
Capital reserve

4,206

Total capital surplus

4,206

―
―

3 Retained earnings(1) Legal reserve(2) Other retained earnings
Reserve from unappropriatedprofitGeneral reserve
Retained earnings brought
forward
Total retained earnings

37

37

―

197

197

―

71,00076,000

5,000

9,792

10,642849

52.5

86,87754.8(0)

(0.0)

(0)

88,756

57.5

94,605

59.7

5,849

148

0.1

32

0.0(115)

148

0.1

32

0.0(115)

Total net assets

88,90457.6

94,637

59.7

5,733

Total Liabilities and Net Assets

154,305

100.0

158,590

100.0

4,284

4 Treasury stock
Total shareholders’ equity
II Valuation and translation adjustments
Other valuation adjustments onmarketable securities
Total valuation and translation
adjustments

81,027―55,849

NAFCO Corporation Non-Consolidated Financial andOperating Results for the Year Ended March 31, 2008

(2) Statements of Income
Previous Fiscal Year
(From April 1, 2006
to March 31, 2007)
Account Item

Amount(Millions of yen)

I Net Sales

194,748

Current Fiscal Year
(From April 1, 2007
to March 31, 2008)

Composition(%)

Amount(Millions of yen)

100.0Year-on-Year Change

Composition(%)

Amount(Millions of yen)

195,742

100.0

993

133,189

68.0

(222)

62,552

32.0

1,215

50,326

25.7

1,341

12,225

6.3

(125)

729

0.4

(7)

II Cost of Sales
1 Inventories—at the beginning ofthe term

44,46543,832

2 Purchases of merchandise

132,779

134,335

177,244

178,167

Cost of merchandise—total
3 Inventories—at the end of the term

43,832Gross profit

133,41268.5

61,33631.5

44,977

III Selling, General andAdministrative Expenses
1 Advertising expense4,708

4,235

2 Delivery expense

2,075

2,102

3 Transfer to allowance for bad debt

9―4 Director’s remuneration andemployee payroll

15,97816,4105 Employee bonuses

1,303

1,007

6 Provision of reserve for directors’
bonuses

35

38

7 Provision of reserve for bonuses

922

962

8 Expense for retirement benefits

357

320

9 Provision of allowance fordirectors’ retirement benefits

149

66

10 Legal welfare expense

1,816

1,853

11 Land and house rent

6,807

7,256

12 Depreciation and amortization

3,467

3,752

13 Heat, light and water

2,812

3,000

14 Security expense

1,156

1,199

15 Taxes other than income taxes

1,478

1,564

16 Other expense

5,903

Operating profit

48,98425.2

12,351

6.3

6,556

IV Non-Operating Income
1 Interest income

1346

2 Dividend income

87

3 Rental income

178

191

4 Support money income

40

25

5 Charges for ordering paperwork

95

68

6 Commission income

264

271

7 Non-operating income, other137

737

0.46118

NAFCO Corporation Non-Consolidated Financial andOperating Results for the Year Ended March 31, 2008

Previous Fiscal Year
(From April 1, 2006
to March 31, 2007)
Account Item

Amount(Millions of yen)

Current Fiscal Year
(From April 1, 2007
to March 31, 2008)

Composition(%)

Amount(Millions of yen)

Year-on-Year Change

Composition(%)

Amount(Millions of yen)

V Non-Operating Expenses
1 Interest expense

264

303

2 Cost of rental income

59

118

3 Other78

Ordinary profit

402

0.2

12,686

6.5

47

468

0.3

66

12,4876.4(199)109

0.1(86)348

0.2(91)

12,2486.3(194)

5,551

2.9

56,6973.4(199)

VI Extraordinary Income
1 Gain on sale of fixed assets

0―

2 Compensation on relocation ofstructures

84―

3 Insurance received

111

107

4 Reversal of allowance for doubtful
accounts

―

196

0.1

2

VII Extraordinary Losses
1 Loss on disposal of fixed assets

49

151

2 Loss on sale of fixed assets

―

082―

59―

―

96

6 Impairment loss

249

98

7 Other―

3 Loss on cancellation of leaseagreement
4 Product damage arising fromcasualty
5 Building restoration expense
arising from casualty

Income before income taxes
Income tax, inhabitant tax andenterprise tax

5,876

Deferred income taxes(329)

Net income

440

0.2

12,443

6.4

15,382
5,546

2.9

6,896

3.57168NAFCO Corporation Non-Consolidated Financial andOperating Results for the Year Ended March 31, 2008(3) Statement of Cash Flows

Account Item

Previous Fiscal Year
(From April 1, 2006
to March 31, 2007)

Current Fiscal Year
(From April 1, 2007
to March 31, 2008)

Year-on-Year Change

Amount(Millions of yen)Amount(Millions of yen)Amount(Millions of yen)

I Cash Flows from Operating Activities
Income before income taxes

12,443

12,248(194)

Depreciation and amortization
Impairment loss on fixed assets
Amortization of Goodwill

3,292249―3,586
9820294(150)
20

Amortization of intangible fixed assets

125118(7)Loss on amortization of long-term prepaid expenses
Loss on disposal of tangible fixed assets

7348

65
151(7)
102

Loss on sale of tangible fixed assets
Loss on disposal of intangible fixed assets
Gain on sale of tangible fixed assets
Increase (decrease) in allowance for doubtful accounts

―0(0)
90―
―
(1)

0(0)
0(10)

Increase (decrease) in reserve for employees’ retirement benefits
Increase in reserve for directors’ retirement allowances
Increase in reserve for directors’ bonuses

60
149
35(46)
66
2(107)(82)(33)

Increase in reserve for bonuses

1740

23

Dividend and interest income

(21)

(54)

(32)

Interest expense

264

303

38

Increase in trade receivables

(354)

(52)

301

Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in consumption taxes payable

634
540

(1,142)(2,121)(1,776)(2,661)

582

(482)

(1,065)

Increase in other assets
Increase (decrease) in other liabilities
Bonuses to directors paid

(64)
889
(35)

(118)
(720)
―(54)
(1,609)35

Subtotal

18,939

11,961(6,978)Interest and dividends received

1650

34

Interest paid
Income taxes paid

(291)
(5,486)(322)(5,726)

(31)
(240)

Net cash provided by operating activities

13,178

5,962(7,215)

Payments for acquisition of tangible fixed assets(7,844)(6,988)855

Proceeds from sale of tangible fixed assets
Payments for acquisition of intangible fixed assets0(171)

0(200)

0(29)Payments for disposal of fixed assets

(27)

(101)

(74)

Proceeds from sale of investment securities
Payments for leasehold deposits and guarantee money
Proceeds from collection of leasehold deposits and guarantee
money
Payments on loans
Decrease (increase) in other investments

―
(242)

0(403)

0(160)

50

139

88(500)
479

―
(127)

500
(607)

(8,255)(7,682)

573

Increase in short-term borrowings

3,300

1,400

(1,900)

Proceeds from long-term debt

3,500

3,900

400

Payments for repayment of long-term debt

(3,152)(2,763)389

Payments for purchase of treasury stock
Cash dividends paid

―
(788)

(0)
(848)

(0)
(59)

Net cash provided by financing activities

2,859

1,688

(1,170)

7,782

(30)

(7,813)

II Cash Flows from Investing Activities

Net cash used in investing activities
III. Cash Flows from Financing Activities

IV. Net increase (decrease) in cash and cash equivalents
V. Cash and cash equivalents at beginning of term

5,073

12,856

7,782

VI. Cash and cash equivalents at the end of term

12,856

12,825(30)

8