The 60th Business YearBusiness Performance Data Analysis
Fiscal Year Ending December 2022
Second Quarter

Published by:

Securities code: 9830

Business Administration Headquarters, Corporate Planning Division,
Public Relations & IR Section
Post code: 105-0004
Trusco Fiorito Bldg. 10th floor, 4-28-1, Shinbashi, Minato-ku, Tokyo 105-0004, Japan
TEL：03-3433-9840 FAX：03-3433-9881
E-mail： info@trusco.co.jp©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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TRUSCO NAKAYAMA Investor Relations

Table of Contents
60th Business Year, Fiscal Year Ending December 2022
Second Quarter

P5-9
P10-19
P20-25
P26-33
P34-37
P38-41
P42-45

A: Company-wide Business
Performance
B: Sales Performance
C: Financial and Other
Performances
D: Key Indicators
E: 60th Management Plan
F: ESG Information
G: References

This document contains statements regarding future forecasts of business performance and business plans. Such statements are not guarantees of future
performance and involve risks and uncertainties.
Please note that future performance may differ from the planned figures due to changes in the management environment and other factors. This document is for
informational purposes only and the Company is under no obligation to update it with the latest information available at this time.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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Company overview
Founding

May 15, 1959

Representative

Tetsuya Nakayama, President
Chairman, Nakayama Visually Impaired Welfare Foundation
Vice president, Japan Federation of Machine Tool Distributors Associations
President, Osaka Machine Appliance Wholesaler Cooperative

Head offices

Tokyo Head Office (Minato-ku, Tokyo, registered as official headquarters)
Osaka Head Office (Nishi-ku, Osaka City)

Number of
offices

94 in total:
89 domestic bases: (2 head offices, 59 domestic sales branches, 28 domestic distribution centers)
5 overseas bases: (Local subsidiaries:
TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED,
TRUSCO NAKAYAMA CORPORATION (INDONESIA) LIMITED,
Supplier development office:Germany, Taiwan (to be opened by the end of 2022), Thailand)

Capital stock

5,022,370,000 yen

Listed stock
exchange

First section of the Tokyo Stock Exchange (Code number: 9830)

Number of
employees

3,006 [Consolidated]

Credit rating

A (Rating and Investment Information, Inc.)

Line ofbusiness

Wholesaler of industrial equipment such as machine tools, distribution equipment andenvironmental safety equipment (and consumables used in factories) and planning anddevelopment of products under the company’s own brand, TRUSCO▮ Corporate message

3©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

Business flow
We are a specialized trading company that purchases professional tools from our suppliers and sells them tomachine tool dealers, internet order companies, general hardware mass discounters, and other customers. Throughus, professional tools can be delivered quickly, smoothly, and reliably to manufacturing sites throughout Japan. We
are committed to wholesale and have established a unique business model that improves convenience for ourcustomers, suppliers, and users.

Customers
Suppliers

5,564 companies

Users
∞

3,129 companies(+163 companies)

Factory route

Machine tool
dealers,
dealers of welding
materials, etc.

e-business
route

Mainly internet
order companies

Home center
route

Mainly general hardware
mass discounters,
pro-tool shops,
home appliance mass
discounters

Overseas
route

Mainly overseas
dealers

Domestic
suppliers

2,805 companies(+143 companies)

Overseas
suppliers

30 countries
324 companies

Manufacturers, construction
companies, etc.

Manufacturers, general
consumers, etc.

Businesses conducting
outdoor work, general
consumers, etc.

(+20 companies)* ( ) Change from the endof previous fiscal year

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Overseas manufacturers, etc.

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A. Company-wide Business
PerformanceP6 A-1. Accounting highlights
P7 A-2. [Consolidated] Business performance
P8 A-3. [Consolidated] Monthly sales
P8 A-4. [Consolidated] Monthly sales by sales route5©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

A-1. Accounting highlights▮ Performance in the first half of the fiscal year
・ Opportunity loss was reduced by continuously expanding inventories amid risingresource prices and increasing shortages of products.
・ The user direct delivery service was enhanced, and orders were consolidated.
・ Selling, general and administrative expenses increased due to the payment ofapproximately 500 million yen in temporary bonuses to support the livelihoodsof employees▮ Outlook for the second half of the fiscal year
・ Reduce expenses throughout the company to restrain rise in selling, generaland administrative expenses
・ Forecast to achieve budget without revising full-year budget▮ [Reference] Competitors Year-on-year sales comparison
FYE March 31, 2020

FYE March 31, 2021

FYE March 31, 2022

Company A△10.3%△7.9%+15.4% ※2

Company B△0.5%△12.0%+7.1% ※2

Company C

△9.8%

△8.5%

FYE December 31, 2019

FYE December 31, 2020

FYE December 31, 2021

+3.0% ※１

△3.3%

+7.5%

TRUSCO+20.6%*1 Reference value due to start of consolidation *2 Reference value due to change in accounting policy©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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TRUSCO NAKAYAMA Investor Relations

A-2. [Consolidated] Business performanceFYE December 31, 2021
Full YearNet salesFYE December 31, 2022
Second Quarter

FYE December 31, 2022
Full YearYoY change

Forecast

Year-on-yearchangeActual results

Rate

Actual results

Rate

226,833 million yen－

120,683 million yen－+7.1% 243,500 million yen+7.3%

Gross profit

47,670 million yen

21.0%

25,379 million yen

21.0%

+4.2%

51,720 million yen+8.5%

Selling, general andadministrative
expenses (SGA)

34,673 million yen

15.3%

19,445 million yen

16.1%+14.0%

37,470 million yen+8.1%(depreciation
included in SGA)

6,929 million yen

3.1%

3,351 million yen

2.8%

△1.9%

6,853 million yen△1.1%

Operating income

12,997 million yen

5.7%

5,933 million yen

4.9%△18.8%

14,250 million yen+9.6%

Ordinary income

13,555 million yen

6.0%

6,147 million yen

5.1%△20.3%

14,600 million yen+7.7%

Profit attributableto owners of parent

11,596 million yen

5.1%

4,250 million yen

3.5%△19.1%

9,960 million yen△14.1%Net income per
share
Dividend per share
PB salesCapitalexpenditures

175.86 yen－

64.46 yen－－

151.04 yen－

35.50 yen－

16.50 yen－－

38.00 yen

－

18.9%

+3.4%

－

－

43,445 million yen
8,799 million yen

19.2%
－

22,824 million yen
2,656 million yen

46,626 million yen
4,338 million yen

+7.3%
－

Figures for the fiscal year ended December 31, 2021 are retroactively applied due to a change inaccounting policy.
In the fiscal year ended December 31, 2021, approximately 3,400 million yen was recorded as extraordinary
income due to the sale of real estate.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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TRUSCO NAKAYAMA Investor Relations

A-3. [Consolidated] Monthly sales* Since April 1, 2022, we have changed our holidays
according to the calendar, so the number ofbusiness days in August and December has
increased compared to the previous year.

Orders are constantly placed for consumables used in factories. As such, we place focus on the sales per day. Our
sales increase during the peak periods of March when many companies close their accounts.

Sales per month(million yen)
Year-on-year change (%)

January

February

March

April

May

June

July

AugustSeptember

Actual results

OctoberNovember

December

BudgetJanuary

February

March

April

May

June

July

AugustNumber of businessdays (days)

18

18

22

20

19

22

20

22

20

20

20

22

243

Year-on-year change(days)

±0

±0

△1

△1

+1

±0

±0

+3

±0

△1

±0

+2

+3

Sales per day(million yen)

1,00６

1,076

1,075

967

973

985

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

September OctoberNovember December

Total

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TRUSCO NAKAYAMA Investor Relations

A-4. [Consolidated]
Monthly sales by sales route▮ Factory route* Since April 1, 2022, we have changed our holidays
according to the calendar, so the number ofbusiness days in August and December has
increased compared to the previous year.

▮ e-business route

Net sales (million yen)
Year-on-year change(%)

January

February

March

April

May

June

July

August September

Actual results

October November December

Budget▮ Home center route

Net sales (million yen)
Year-on-year change(%)

Net sales (million yen)
Year-on-year change(%)

January

February

March

April

May

June

July

August September October November December
January

Actual results
Number of businessdays (days)
Year-on-yearchange (days)

BudgetFebruary

March

April

May

June

July

August September October November December

BudgetActual results

January

February

March

April

May

June

July

AugustSeptember

October

18

18

22

20

19

22

20

22

20

20

20

22

243

±0

±0

△1

△1

+1

±0

±0

+3

±0

△1

±0

+2

+3

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

November December

Total

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B. Sales Performance
P11 B-1. [Consolidated] Business performance by sales
route
P12
・Factory routeP13・e-business route
P14
・Home center route
P15
・Business performance of subsidiaries
P16 B-2. [Non-consolidated] Analysis of sales
P17 B-3. [Non-consolidated] Changes in sales by
category of goods
P18 B-4. [Non-consolidated] Sales by category of goods
P19 B-5. [Non-consolidated] Sales of private brand (PB)
goods
10
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

B-1. [Consolidated] Business performance by sales routeFYE December 31, 2022
Second Quarter

FYE December 31, 2021
GrossprofitmarginNet sales

Sales route

Actual results

Net sales

Share

Actualresults

Actual results

Share

FYE December 31, 2022
Full Year
Gross profit margin

Net sales

YoY change

Changefrombudget(%)

Actualresults

YoYchangeForecast

Year-onyearchangeFactory route

162,379 million yen

71.6%

20.5%

84,220 million yen

69.8%

+4.3%

△1.5%

20.8%

△0.4pt171,782 million yen+5.8%

e-business
route

44,393 million yen

19.6%

23.5%

25,253 million yen

20.9%+14.3%

+2.7%

22.4%

△1.6pt50,097 million yen+12.8%

Home center
route

18,366 million yen

8.1%

18.6%

10,203 million yen

8.5%+13.7%

+6.4%

17.7%

△1.2pt19,455 million yen+5.9%

Overseas route1,694 million yen

0.7%

33.0%

1,005 million yen

0.8%+22.2%

△1.4%

36.5%

+3.6pt2,164 million yen+27.7%

226,833 million yen

100%

21.0%

120,683 million yen

100%

+7.1%

+0.0%

21.0%

△0.6pt 243,500 million yen

+7.3%

Total

Figures for the fiscal year ended December 31, 2021 are retroactively applied due to a change inaccounting policy.

11©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

B-1. [Consolidated] Business performance by sales route:
Factory route▮ Sales by industry
FYE December 31, 2021
Second Quarter

FYE December 31, 2022
Second Quarter

Gross profit
marginNet sales
Sales route

Net sales

Gross profit margin

Actual results

Share

Actualresults

Actual results

Share

YoY
changeActualresults

YoYchangeMachine tool dealers

40,768 million yen

50.5%

21.0%

42,928 million yen

51.0%

+5.3%

21.0%

±0.0ptDealers in welding materials

11,365 million yen

14.0%

21.6%

11,843 million yen

14.1%

+4.2%

20.4%

△1.2pt(Physical chemical, conductor, packaging
material dealers, etc.)

13,473 million yen

16.7%

20.7%

13,838 million yen

16.4%

+2.7%

20.2%

△0.5ptConstruction related

15,149 million yen

18.8%

21.6%

15,609 million yen

18.5%

+3.0%

21.3%

△0.3ptFactory route total

80,757 million yen

100.0%

21.2%

84,220 million yen

100.0%

+4.3%

20.8%

△0.4ptOther manufacturing related▮ Sales by region▮ Factory route: Up 4.3% year on year

2021 2QF route net sales (million yen)

As stock shortages increased, wepurchased products with the same
specifications from multiple
manufacturers and kept them in stock,which allowed us to minimize opportunity
loss caused by stock shortages.
We implemented business activities that
also help to reduce the environmental
burden, such as strengthening the "MRO
stocker," which enables productprocurement at the factory at any time,and enhancing the user direct delivery
service.

2022 2QF route net sales (million yen)( ) YoY change

Hokkaido andTohokuKita-Kanto andShinshuTokyo
Metropolitan

Hokuriku

Tokai©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Kinki

Chugoku andShikoku

Kyushu12
TRUSCO NAKAYAMA Investor Relations

B-1. [Consolidated] Business performance by sales route:e-business route▮ Sales by industry
FYE December 31, 2022
Second Quarter

FYE December 31, 2021
Second Quarter
GrossprofitmarginNet sales
Sales route
Actual results

Share

Net sales

Actualresults

Actual results

Gross profit margin

Share

YoY change

Actualresults

YoY change

Mail order companies

17,172 million yen

77.7%

23.1%

19,623 million yen

77.7%+14.3%

23.1%±1.8ptCompanies participating in
Orange Commerce(Trusco’s electronic central
purchasing system)

4,917 million yen

22.3%

27.4%

5,629 million yen

22.3%+14.5%

26.4%△1.0pt22,089 million yen

100.0%

24.0%

25,253 million yen

100.0%+14.3%

22.4%△1.6pte-business route total▮ e-business route: Up 14.3% year on year
By leveraging our product database of approximately 2.91 million items and our logistics system, we havestrengthened our customers' system coordination, and have promoted the consolidation of commercial distribution
channels with our company at each company. In addition, the volume of orders received by our company has
increased significantly due to the "user direct delivery service" that greatly reduces the labor and cost ofInternet/mail order companies and improves convenience by shortening delivery times.
Hardware retailers
2.3%▮ Sales to mail order companies: Sales ratio by industry

MRO mailordercompanies

Comprehensive mail
Stationery mailorder
Mail ordercompanies of home
Other mail order companies
electricalappliances
companies
order companies
6.5%

18.9%

41.4%
MonotaRO, Misumi, etc.

Tubing dealers
1.3%

Amazon, etc.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

12.2%

Askul, etc.

8.6%

Machine tool
dealers
3.8%

Dealers of physicalchemical andmedical devices
2.1%

Other
2.8%

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TRUSCO NAKAYAMA Investor Relations

B-1. [Consolidated] Business performance by sales route:
Home center route▮ Sales by industry▮ Change in sales earned via home center route▮ Change in sales earned via pro-tool shops

Full year budget
19,455 million yen

Unit: million yen, %Unit: million yen, %YoY change

YoY changeYear on year (%)

2019

Year on year (%)

2018

2019

2020

2021

2022
(2022) 2Q

What are pro-tool shops?

2020

2021

2022
(2022) 2Q

Pro-tool shops refer to dealers specializing in tools
for professional craftspeople and factory workers.
They are so compatible with our products thatsales to them are rising.

▮ Home center route: Up 13.7% year on year
By collaborating with our company on products that they do not have on display for sale, home centers madeit possible to deliver them the next day, and by making proposals based on the sales information of eachsegment, relationships have strengthened rapidly. In addition, as each home center began to strengthen their
EC business, our overwhelming quantity of inventories and logistics facilities received high evaluations, which
led us to acquire about 3 million yen from new manufacturers.

14©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO
Relations
TRUSCONAKAYAMA
NAKAYAMAInvestor
Investor
RelationsB-1. [Consolidated] Business performance by sales route:
Business performance of subsidiaries▮ Non-consolidated sales
TRUSCO NAKAYAMA CORPORATION
non-consolidated)

TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITED

TRUSCO NAKAYAMA CORPORATION(INDONESIA) LIMITEDFYE December 31, 2022
Second Quarter PerformanceFYE December 31, 2022
Second Quarter PerformanceFYE December 31, 2022
Second Quarter Performance

Full Year
Forecast

AmountRate

Year-on-－+59.9%+20.8%

Full Year
Forecast

YoYchangeYear-onyear change

YoY change

Year-on-yearchange－+11.3%+26.1%

223 million yen

97 million yen

23.9%+14.4%+32.1%

63 million yen

28.4%+87.8%+29.7%+8.1%

80 million yen

19.9%+14.8%+16.8%

74 million yen

33.0%+11.2%

+3.7%

△2.0%

△1.2%

12 million yen

3.0%

+8.4%

+16.0%

26 million yen

12.0%+14.1%

+1.6%

4.9%

△19.5%+9.4%

16 million yen

4.0%+12.3%+124.2% △10 million yen

－

－

－

6,144 million yen

5.1%△20.5%+7.4%

16 million yen

4.1%+16.4%+120.6%△4 million yen

－

－

－

4,244 million yen

3.5%△19.5%△14.4%

16 million yen

4.1%+16.4%+120.6%△4 million yen

－

－

－

AmountRate

120,387 million yen

－

+7.1%

Gross profit

25,179 million yen

20.9%

Selling, generaland administrative
expenses (SGA)

19,290 million yen

Depreciation
included in SGA

Amount

Rate

+7.2%

405 million yen

+3.9%

+8.4%

16.0%

+14.0%

3,312 million yen

2.8%

Operating income

5,889 million yen

Ordinary income
Current (quarterly)
net income

Net sales

Full Year
Forecast▮ Overseas route: Up 22.2% year

▮ [Reference] Non-consolidated businessperformance in other overseas regions

Business performance inother overseas regions(Philippines, China, South
Korea, etc.)

Actualresults

Net sales

Gross profit

376 million yen

97 million yen

Rate
YoY change

25.9%+18.1%

YoY change year change+12.2%

on year
In Thailand and Indonesia, westrengthened transactions with existingcustomers by accelerating the provision of
product data to EC companies. We also
expanded business with new local
customers, including EC companies andgeneral hardware mass discounters.
With regards to sales to other overseas
regions, we worked to expand transactions
by opening new accounts with local
subsidiaries of Japanese companies.

15©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

B-2. [Non-consolidated] Analysis of sales(Unit: million yen)

Net sales up 7,937 million yen

Rise in demand due
to recovery of the
manufacturingindustry, etc.

Rise in demand
due to recovery
in capital
expenditure, etc.

+2,232

Decrease inconstruction
goods

△105

Decrease in other(including
adjustments)

2Q of
FY 2022△300+6,110120,387(+7.1%)2Q of
FY 2021

Details

112,450[Rise in demand for supplies due to recovery in the manufacturing industry, etc.]+6,110 million yen
・Environmental safety equipment (protective equipment, etc.):+2,229 million yen
・Work supply (chemical products, etc.):+1,704 million yen
・Hand tools (pneumatic tools, tools for manual work, etc.):+871 million yen, etc.
[Rise in demand for equipment due to recovery in capital expenditure]+2,232 million yen
・Construction goods(Piping and materials of electronic equipment, etc.) :+1,129 million yen
・Distribution and storage equipment(transportation goods, containers and vessels, etc.):+1,103 million yen[Decrease in heat protection goods]
・Construction goods (power generators):©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved-105 million yen-105 million yen

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TRUSCO NAKAYAMA Investor Relations

B-3. [Non-consolidated] Changes in sales by category of goods

Dust mask

Mesh palettes

Containers

Connection terminals

Waist belt-type
personal fall arrest
systems
Work benches

Anti-slip gloves

Adhesives

Harness lanyards★ CO2 monitors

Humidifiers

Storage rooms★Sterilization and hygiene
goods

Scaffold platform★Splash prevention
partitions★Heat and temperature
measuring instruments

Manual chain block

Truck sheets

Electric screwdrivers

17★General-purpose facemasks

Sales decrease

Power generators

Coolers★Hand sanitizers★Working gloves

△148

△164

Tape

△150

△62

TRUSCO NAKAYAMA Investor Relations©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

△33

△176

Disasterprevention goods

△100

△35
△36

△36
△37
△63

△8.8% △35.3% △23.2% △27.2% △18.8% △56.1%△31.4%

△39
△40

△40
△47
△50

Lift trucks and handpallet trucks+501△27.8% △13.3%△30.1%△17.7%△36.3% △9.2%△64.3%△25.0%△52△200

Sealing goods

Harness-type personal
fall arrest systems+100★: COVID-19 related products

Alcohol checkers+500+20.5%+19.5% +42.9% +86.2%
+106
+95
+93
+91 +11.8% +31.8% +26.6%
+73
+73
+72
+114

Sales increase

+200

+0

0 +0

+211

+19.1%+203+1624.4%+153 +16.2%+224.1%+285 +75.3%+253 +98.7%+300+65.5%+97.0%+400+339(Unit: million yen)+600

B-4. [Non-consolidated] Sales by category of goods
A recovery of production operations led to a rise in sales of products (large category 4, 7) related to factory production
and to capital expenditures. A revision to the law that introduces an obligation to wear fall arrest systems increased
demand for harness-type systems (large category 6). Meanwhile, demand for face masks and protective clothing (large
category 6) for the prevention of COVID-19 infections began to subside.
Category of goods(large category)

1. Cutting tools

Medium category

Category of goods(large category)Medium category

Trusco's sales

Share

Year-on-year Gross profit
marginchange3.1+5.7

15.8 6. Environmental

Environmental safety equipment
total

21,777

18.1

+11.3

21.9

① Cutting tools

1,777

1.5

-

10.1

㉕ Protective equipment

11,960

9.9

-

22.4

1,941

1.6

-

20.9

㉖ Safety goods

5,095

4.2

-

25.5
19.5

safety equipment

8,946

7.4

+3.7

15.5

Environment improvement
㉗
goods

989

0.8

-

4,696

3.9

-

15.0

㉘ Air conditioning goods

1,873

1.6

-

11.4

④ Mechatronics

1,843

1.5

-

15.2

㉙

Disaster and crime
prevention goods

820

0.7

-

18.6

⑤ Tools for machine tools

1,128

0.9

-

23.0

㉚ Closets and exterior goods

1,041

0.9

-

22.6

-

10.9 7. Distribution andstorage21.2 equipment

Distribution and storage
equipment total

13,541

11.3

+8.7

22.4

㉛ Loading goods

-

10.7
16.4
17.8
25.5

㉜ Conveyors㉟ Steel shelves

3,623
591
5,232
2,043
2,049

3.0
0.5
4.3
1.7
1.7

-

17.4
15.4
22.3
29.4
26.3

Research management
equipment total

5,102

4.2

+2.2

23.1

477

0.4

-

28.9

642

0.5

-

31.5

⑥ Electronic machinery

1,277

1.1

Construction goods total

13,947
958
1,735
1,127
1,209

11.6
0.8
1.4
0.9
1.0

⑦ Hydraulic tools⑧ Pumps⑨ Welding equipment⑩ Painting and interior goods+8.1㉝ Transportation goods㉞ Containers and vessels

Civil engineering and building
⑪
goods

1,188

1.0

-

⑫ Ladders and stepladders

1,693

1.4

-

13.2 8. Research
management
22.5 equipment

Piping and materials ofelectronic equipment
Component, hardware, and⑭building materials

2,251

1.9

-

23.1

㊲

⑬

㊱ Tool wagons
Storage and management
goods

3,782

3.1

-

26.4

㊳ Work benches

826

0.7

-

32.4

Work supply total

22,385

18.6

+8.6

21.9

㊴ Stainless goods

981

0.8

-

18.0

⑮ Cutting goods

717

0.6

-

21.3

2,174

1.8

-

18.1

23.3 9. Office andhousing facility
21.0 equipment

Research and developmentrelated goods
Office and housing facility
equipment total

10,870

9.0

3,181
1,240

2.6
1.0

-

21.8
19.1

1.3
1.4
0.8

-

27.1
21.8
24.1

1.7

-

24.3

-

20.0

+81.4
+7.1

1.5
20.9

⑯ Grinding and polishing goods⑰ Chemical products⑱ Factory miscellaneous goods⑲ Packing and binding goods⑳ Casters

5. Hand tools

Year-on-year Gross profit
marginchange3,719

Drilling and thread cutting
tools
Production processing goods
2. Production
processing goods total③ Measurement equipment

4. Work supply

Share

Cutting tools total②

3. Construction
goods

Trusco's sales

Hand tools total
Electric power tools andaccessories
Pneumatic tools and㉒
accessories㉑㉓ Tools for manual work
㉔ Tool boxes

3,621

3.0

-

11,633
2,060

9.7
1.7

-

2,870
1,483
19,674

2.4
1.2
16.3

5,102

㊵

㊶ Cleaning utensils

15.4㊷ Stationery

+4.6

30.4
17.8
18.9

㊸ Office miscellaneous goods㊺ OA business machinery

1,574
1,741
981

4.2

-

14.1

㊻ Office furniture

2,008

3,230

2.7

-

17.8

㊼ Interior goods

10,345
994

8.6
0.8

-

20.6 10. Others
29.5㊽ Entire company㊹ Electric appliances

Total

141

0.1

421
120,387

0.4
100.0

+1.4

* Because the Accounting Standard for Revenue Recognition was applied in the 60th business year, year-on-year comparisons for the medium category are
indicated with "-".
Each gross profit margin is presented in figures before the application of the Accounting Standard for Revenue Recognition.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

22.9

18

TRUSCO NAKAYAMA Investor Relations

B-5. [Non-consolidated] Sales of private brand (PB) goods▮ Change in sales of PB goods(Unit: million yen)

Full year budget:
46.6 billion yen( ) Year-on-year change

Cutting tools

Research
management
equipment

2018

2019

2020

2021

Distribution
and storage
equipment

2022(2022) 2Q

Construction
goodsWork supply

Hand tool

Share

Environmental
safety equipment

Grossprofitmargin▮ Sales by sales route and category of goods
Entire company

Sales route
Share
Categoryof goods

19.0%

Gross profit margin 35.9%
Net sales

YoY change

Factory
Share

19.7%

Gross profit margin 36.1%
Net sales(Unit: million yen)e-businessYoY change

ShareHome center
21.9%

Gross profit margin 36.0%
Net sales

YoY change

Share

5.2%

Gross profit margin 30.8%
Net sales

YoY change

22,824+3.4%

16,608

+3.2%

5,537

+3.6%

526

+7.6%

Cutting tools

351

△1.1%

260

+2.9%

52

△14.5%

32△7.3%

Production processing
goods

812

+2.2%

596

+3.4%

195

+0.2%

9

△6.0%

Construction goods

2,051

+9.7%

1,471

+9.7%

538

+10.6%

30△1.8%Work supply

3,946

+1.6%

3,107

+1.5%

769

+1.9%

37

△8.6%

Hand tool

2,196

△4.4%

1,579

△1.6%

524

△10.7%

60△8.1%

Environmental safety
equipment

3,633

△0.9%

2,697

△2.8%

844

+2.8%

82

+31.8%

Distribution andstorage equipment

5,747

+9.0%

4,041

+8.9%

1,422

+8.1%

254

+13.0%

Research management
equipment

1,811

+3.7%

1,316

+1.7%

481

+9.1%

2

+60.3%

Office and housing
facility equipment

2,272

+3.9%

1,537

+3.9%

709

+3.8%

14

△1.9%

1

△8.7%

-

-

1

△8.7%

Total

Other

Office andhousingfacilityequipment

Production
processing goods©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved--

It was created out of ourdesire to "respond toprofessional skills withprofessional quality." Createdin 1964 as the industry's firstprivate brand (PB) product, it
encompasses the widest
range of consumables used infactories among other brands.
We are currently developing
approximately 10,000 items
each year, and are working tofurther strengthen our brand.

19
TRUSCO NAKAYAMA Investor Relations

C. Financial and Other
Performances
P21 C-1. [Consolidated] Selling, general andadministrative expenses (SGA)
P22[Consolidated] Details of selling, general andadministrative expenses (SGA)

P23 C-2. [Consolidated] Financial statements andfinancial indicators
P24 C-3. [Consolidated] Capital expenditures
P25 C-4. Planning progress for Planet Aichi
20©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

C-1. [Consolidated] Selling, general and administrative
expenses (SGA)▮ Main items that increased in selling, general and administrative expenses (SGA)FYE December 31,
2021
Account title

FYE December 31, 2022
Second Quarter

Forecast

Year-on-yearchangeActual results

Actual results

Salary and bonus

12,159 million yen

6,474 million yen+11.9%

12,375 million yen+1.8%

Commission fee

2,321 million yen

1,450 million yen+43.5%

2,593 million yen+11.7%

Freight and packing expenses

6,782 million yen

3,738 million yen+11.5%

7,231 million yen+6.6%

Utilities expenses

322 million yen

199 million yen+46.3%

320 million yen△0.8%

Traveling expenses andtransportation expenses

472 million yen

277 million yen+18.2%

495 million yen+5.0%

34,673 million yen

19,445 million yen+14.0%

37,470 million yen+8.1%

Total selling, general andadministrative expenses (SGA)YoY change

FYE December 31, 2022
Full Year* Regarding the full-year budget for 2022, items other than salaries and bonuses, and freight and packing expenses areindicated in the figures for [non-consolidated].

▮ Main factors for increase in selling, general and administrative expenses (SGA)①

Employee salaries andbonusesYear-on-year increase of 688 million yen (+11.9%)
Payment of livelihood support bonuses + 512 million yen, part-time salaries and bonuses +158 million yen
Increased overtime pay for employees due to switching from working from home to working
at the office②

Commission fee

Year-on-year increase of 439 million yen (+43.5%)
HACOBUne scheme + 141 million yen, maintenance and inspection fee + 70 million yen, etc.

③

Freight and packing
expenses④

Other increases

Year-on-year increase of 384 million yen (+11.5%)
Increase in number of shipments + 330 million yen
Of which, increase in direct shipments
to users + 178 million yen
Year-on-year increase of 242 million yen (+8.9%)
Utilities expenses: Soaring electricity expenses +55 million yen, Transportation expenses:
Business trip expenses +16 million yen* For details on the factors of the changes, please see page 22.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

21

TRUSCO NAKAYAMA Investor Relations

C-1. [Consolidated] Details of selling, general andadministrative expenses (SGA)(Unit: million yen, %)FYE December 31, 2022
Second Quarter

FY 2021

Share in net
Share in net
Actual results
Actual results
sales
sales

No.

YoY Change(amount)

YoY change

FY 2022
Full Year
BudgetYear-on-yearchange1 Salary and bonus

12,159

5.4

6,474

5.4

+688

+11.9

12,375+1.8

Freight and packing
2
expenses

6,782

3.0

3,738

3.1

+384

+11.5

7,231

+6.6

3 Depreciation

6,929

3.1

3,351

2.8

△64

△ 1.9

6,853

△ 1.1

4 Commission fee

2,321

1.0

1,450

1.2

+439

+43.5

2,593

+11.7

5 Welfare expense

2,197

1.0

1,196

1.0

+119

+11.1

2,286

+4.1

6 Taxes and dues

1,379

0.6

714

0.6

+33

+5.0

1,343

△ 2.6

17

0.0

280

0.2

+2

+0.7

504

+2807.4

472

0.2

277

0.2

+42

+18.2

495

+5.0

9 Advertising expenses

509

0.2

275

0.2

+8

+3.3

546

+7.1

10 Promotion expenses

△ 843

△ 0.4

260

0.2

+579

－

337

－

11 Communication expenses

400

0.2

218

0.2

+19

+9.7

430

+7.3

12 Supplies expenses

472

0.2

207

0.2

△15

△ 6.9

465

△ 1.6

13 Utilities expenses

322

0.1

199

0.2

+63

+46.3

320

△ 0.8

14 Leasehold and office rents

337

0.1

181

0.2

+14

+8.4

337

△ 0.1

15 Vehicle expenses

269

0.1

148

0.1

+10

+7.8

260

△ 3.6

Remuneration paid to16
directors

404

0.2

141

0.2

△3

△ 2.3

414

+2.4

25

0.0

20

0.0

+7

+61.7

99

+289.3

513

0.2

307

0.2

+59

+23.8

578

+12.7

34,67315.3

19,44516.1+2,389+14.0

37,470+8.1

7 Provision for bonuses
8

Traveling expenses andtransportation expenses

17 Entertainment expenses
18 Other

Total* Regarding the full-year budget for 2022, items other than salaries and bonuses, and freight and packing expenses are indicatedin the figures for [non-consolidated].
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

22

TRUSCO NAKAYAMA Investor Relations

C-2. [Consolidated] Financial statements and financial indicators▮ Balance Sheet▮ Statement of cash flows(As of June 30, 2022)

Item(Assets)
Current assets
Cash and deposits
Accounts receivable
Electronically recordedmonetary claims - operating
Merchandise
Other
Allowance for doubtful
accounts
Non-current assets
Property, plant andequipment
Buildings
Machinery and equipment
Tools, furniture andfixtures
Land
Construction in progress
Other
Intangible assets
Software
Other
Investments and otherassetsInvestment securities
Deferred tax assets
Deferred tax assets forland revaluation
Other
Allowance for doubtful
accounts
Total assets

Unit: million yen

Unit (million yen)AmountItem(Liabilities)
118,991 Current liabilities
43,749Accounts payable - trade29,692
Short-term borrowings
1,731
42,848970△0106,981

Amount41,911
18,372
17,000△1,841

Cash flows from investing activities△3,467△3,461+5△924△1,022

△98

9

86

+77

Net increase (decrease) in cash and cash
equivalents

3,967

2,110

△1,856

Cash and cash equivalents at beginning of
period32,344

41,449+9,105

Cash and cash equivalents at end of period

36,311

43,560+7,249Cash flows from financing activities

1,961
284

Effect of exchange rate change on cash andcash equivalents

2,237

98,382 Non-current liabilities

37,99447,36435,000Long-term borrowings
Provision for retirement
benefits for directors (andother officers)

Long-term guarantee
deposits
38,482
Other
1,666 Total liabilities
2,006 (Net assets)
4,803 Shareholders' equity
4,487
Capital stock
315
Capital surplus
1,664

3,795

6,508

Income taxes payable
Provision for bonuses

66

Retained earnings

3,298

Treasury shares
Accumulated other37
comprehensive income

Valuation difference on
available-for-sale securities
313
Revaluation reserve for land
Foreign currency translation△10
adjustment
Total net assets
225,972 Liabilities / Total net assets
155©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved▮ Equity ratio

151
2,748
94
79,906
145,462
5,022
4,711

Change

8,349

1,990

Provision for bonuses for
directors (and otherofficers)

2Q of
FY 2022

Cash flows from operating activities

Accounts payable - other

Other

7,197

2Q of
FY 2021End of FY 2021
Equity ratio

2Q of FY 2022

64.0%

Change64.6%+0.6ptEnd of FY 2020

End of FY 2021

Change(pt)

ROA (Return on Assets)

5.7%

6.3%

+0.6ptROE (Return on Equity)

6.1%

8.4%

+2.3pt▮ Other financial indicators

135,808
△79
603
566
△353
390
146,066
225,972<Our Approach to ROE>
We believe it is important to expand profits and ensure
long-term, stable increase by making continuous
investments to enhance corporate value. We believe thatROE should increase as a result of our business where weplace importance on improving the convenience of ourcustomers.

23

TRUSCO NAKAYAMA Investor Relations

C-3. [Consolidated] Capital expenditures▮ 60th planned expenditure: approx. 4,338 million yen(Unit: million yen)
ActualExpected
expenditures for expenditures forthe first half ofthe second half
the fiscal yearof the fiscal year

Details of major capital expenditures in 2022
Planet Higashi Kanto 2nd automated pallet warehouse (provisional name) expansion work (planned total
Buildings investment: 2,550 million yen)
Sakai Stock Center new construction (planned total investment: 1,870 million yen), etc.
Facilities

Planet Tohoku I-Pack 🄬🄬 specification change (planned total investment: 20 million yen)
Installation of Planet Saitama palletizing robot (planned total investment: 100 million yen)

1,192

1,195

171

70

512

798

Renewal of product database “Sterra” (planned total investment: 1,330 million yen)
Systems

Repair of "Polario," a site for business collaboration with suppliers (planned total investment: 140 million yen)
Introduction of employee engagement system (planned total investment: 80 million yen), etc.

400

Land

2,275

Subtotal

2,063

4,338

Annual capital expenditures▮ Change in capital expenditures(Unit: 100 million yen)

Capital expenditures

197
Facilities

171

Systems
Land andbuildings

80

87

4,300

・ The investment amount may fluctuatebecause the scheduled amount of
capital expenditures includes expenses
for projects at the planning stage.
・ The figures for the 60th business year
represent values on a cash-out basis.

million yen

For FYE December 31, 2022, depreciationof 6,853 million yen (down 76 million yen
year on year) is planned.
2018

2019

2020

2021

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2022(2022) Plan

24
TRUSCO NAKAYAMA Investor Relations

C-4. Planning progress for Planet Aichi▮ Planet Aichi Overview
Location:

Kitanagoya, Aichi Prefecture(Site of Readjustment Project for the Land West of
Okimura, Kitanagoya)
Site area:
41,636.36 sqm (purchased: 20,271.07 sqm, leased
land: 21,361.98 sqm)
Land rent:
Approximately 5.7 million yen per monthLand price: Approximately 1,400 million yen(purchased land only)
Planned investment for this fiscal year:
Approximately 150 million yen (buildings)
Total investment: Approximately 25,000 million yen (planned)

Image of a completed Planet Aichi ⇒▮ [Reference] Capability comparison with Planet Saitama(Figures for P Saitama are as of the end of June 2022)

Planet Aichi
Site area

Planet Saitama

41,636.36 sqm

47,262.81 sqm

Total floor area of building

81,927.27 sqm (planned)

42,694.21 sqm

Number of items in inventory

1 million items (planned)

449,000 items

Number of arrivals

15,000 lines/day (assumed)

6,000 lines/day

Number of shipments

50,000 lines/day (assumed)

16,000 lines/day

Number of employees

400 (assumed)

Around 200©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

25

TRUSCO NAKAYAMA Investor Relations

D. Key Indicators
P27

D-1. Goods

P28-29 D-2. Sales
P30-31 D-3. Logistics
P32

D-4. Digital

P33

D-5. Human resources

26©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

D-1. Key indicators (goods)▮ TRUSCO Orange Book.Com▮ Number of items in inventory: 525,682 items

Number of items featured: 2,914,273 items

Of these, number of goods automatically adopted:
18,115 items

Product search site with all the information you
need to procure professional tools.

Automatic stocking of hot-selling products

・ SDS (Safety Data Sheet)・ Drawing
・ Product quotes and orders(Available 24/7)
・ Return requests(Available 24/7)
・ Real-time stock check

Goods to be stocked based on sales performance areautomatically ordered from suppliers and stocked. The
automatic stocking of hot-selling items improves the level ofservice to customers and increases operational efficiency.

▮[Non-consolidated] TRUSCO Orange Book.Com
in company-wide sales
Change in sales of newly listed goods▮ TRUSCO Orange Book
Number of manufacturers listed: 1,948
Number of items listed: 508,000"Monozukuri Daijiten" (Dictionary of Manufacturing)used at various manufacturing sites(2022 edition)
Number of products
in stock : 429,000
Total number of pages :16,824
Annual circulation:
190,000 copies
Size: A4

Sales of newly listed goods (100 million yen)
Sales of previously listed goods (100 million yen)
Number of suppliers

2017©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2018

2019

2020

2021

27

TRUSCO NAKAYAMA Investor Relations

D-2. Key indicators (sales)● Change in the number of companies participatingin Orange Commerce (Trusco’s electronic central
purchasing system)▮ Orange Commerce
Purchasing support system for users, which
streamlines the procurement process

Sales to companies participating in
Orange Commerce (100 million yen)This is a purchasing support system that is linked to the user's
purchasing system and handles transactions between the user, thecustomer, and the Company. The introduction of the system has
made the procurement process more visible and reduced costs.

No. of companies participating in
Orange Commerce

Place orders on theinternal system

Receipt oforder data

Users

Customers
Delivery of
goods

Delivery of
goods
2018

▮ [Consolidated] Change in number of sales
accounts and companies

2019

2016

2022
(2022) 1Q

Amountirrecoverable(10,000 yen)

Number of companies

2015

2021

▮ Amount irrecoverable due to bankruptcy

Number of accounts

2014

2020

2017

2018

2019
(2019)

2020(2020)

2021
2022(2021) (2022) 2Q

Consolidated

Consolidated

Consolidated Consolidated©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2018

4

2019

0

2020

0

2021

275

2022

0

28

TRUSCO NAKAYAMA Investor Relations

D-2. Key indicators (sales)▮ MRO Stocker (use-first-pay-later tools)
Introduced to 494 companies
as of the end of June 2022

Currently under negotiation

258 companies

Target number of companies
for installation as of the end of
December 2022

1,409Monthly sales target per company

300,000 yen

MRO Stocker is a tool version of a business model that has been popular in Japan for many years, "okigusuri" (usefirst-pay-later medicine). It achieves the ultimate environment of quick delivery where products needed for
manufacturing sites are immediately available. It stocks consumable supplies that users use daily in manufacturing,
responding to the urgent needs of such supplies in manufacturing sites. In addition, users are billed only for theamount used, so they can use it without incurring inventory risk by simply providing the space.

● Operation flow

Linking automatic inventory ordering andorder information

Awarded in FY2021
Business systems and services

Suppliers

Deliveryof goods
Logistics

Core system
Payment
Data

Designated customers

Logistics center

Users
Delivery(restocking)

Payment for
the amountused

Check inventory status remotely©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

29
TRUSCO NAKAYAMA Investor Relations

D-3. Key indicators (logistics)▮ Share by Delivery Category (by number of shipment lines)
2021
2Q

Delivery to
distributors
70.8%

User visits0.3%

Route shipments to Route shipments
to users
distributors
10.3%
17.8%
Distributor
visits
0.8%

2022
2Q

Delivery to
distributors
67.8%

Route
shipments
to users
12.3%

Route shipments todistributors
18.7%
Distributor visits
0.8%▮ About our User Direct Shipment Service▮ Changes of the User Direct Shipment Service

450
As it is becoming common to procure items from online
shopping companies, requests for direct shipments to users
400
are rapidly increasing. In light of expansion of collaboration
with online shopping companies, industry-wide labor350
shortages and users' requests for shorter delivery lead times,
it is likely that direct shipments to users and the number of 300
units will continue to increase, and so it is essential to250
strengthen the direct shipment system.
I-Pack®
[High-speed automated packaging and shipping line]

200
150

720 cs/h per line, equivalent to approx.
100
24 workers
I-Pack introduced to:50
Planet Tohoku,
0Planet Saitama (3 lines)
Planet Tokai, Planet Osaka Total 6 lines(Unit: million yen, million items)

400

283
233

350

Million items

300
250

million yen

18,00014,500380
21,600200
14,700200

11,300150

million yen

Shipping capacity:©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

User visits 0.3%

100
50

2019
2019

2020
2020

2021
2021

2022
2022
(2022)2Q（2022）2Q

030

TRUSCO NAKAYAMA Investor Relations

D-3. Key indicators (logistics)▮ Number of items in inventory and▮ [Non-consolidated] Changes in inventory
disposal and inventories

inventory shipment rate

Inventory disposal (million yen)
Inventories (100 million yen)
Disposal rate (%)

2017

2018

2019

2020

2021

41
318
0.13

39
370
0.11

42
427
0.10

50
406
0.12

55
416
0.13

▮ Delivery service and internal delivery service:
Number of units
No. of units

Change from theend of previous
fiscal year

279

+1

Chartered vehicle delivery service(contracted delivery service)

160

-1

Own company delivery service

119

+2

30

±0

Chartered vehicle delivery service(contracted delivery service)26-1

Own company delivery service

4

+1

309

+1

Total number of deliveries

Number of items in inventory
Inventory shipment rate (%)

2018

2019

▮ Delivery lead time

2020

2021

2022
(2022)2Q

As of the end of May 2022:
20 hours, 16 minutes, 4 seconds(+ 9 minutes, 11 seconds from the end of the previous
fiscal year)▮ Labor cost per line of incoming/outgoingshipments
As of the end of May 2022:
123 yen (+ 5 yen from the end of the previous fiscal year)©2022 TRUSCO NAKAYAMA CORPORATION All Rights ReservedInternal delivery service

Delivery service and internaldelivery service Total

Delivery service
We are reviewing delivery and internal delivery services tooptimize the number of units by streamlining delivery routes
and internal movement of inventory.
We are also increasing the number of own company delivery
services (delivery by the Company's employees) to improvecustomer service. The current own company delivery rate is
42.7%. We plan to increase own company delivery rate to
50% in the future.

31

TRUSCO NAKAYAMA Investor Relations

D-4. Key indicators (digital)▮ AI-based estimation system "Swift Estimator"
Automate quotations with AI
Promotes automation of quotations through special price optimization that automatically calculates fair prices for
products on a regular basis based on the performance of orders and quotations. This has led to an improvement in
the speed of response to customers (minimum 5 seconds).

● Rate of automated quotations

2020

2021

● Rate of online quotation requests

2022
2Q

2020

▮ System order rate
Orders received

Number of orders(thousand lines)

Line share2021

Change in line
share from theend of previous
fiscal year (pt)

Order price(million yen)

2022
2Q

Price share

Change in priceshare from theend of previous
fiscal year (pt)

TRUSCO Orange Book.Com
Internet ordering (for distributors and users)

7,698

39.1%

△0.7

51,145

42.5%

+0.4

TRUSCO EDI
Data linkage with distributor ordering system

4,270

21.7%

+0.1

16,519

13.7%

+0.7

Orange Commerce
Linkage with users' purchasing system

462

2.3%

+0.2

3,200

2.7%

+0.4

EOS
Home center electronic ordering system

4,323

21.9%

+0.3

9,367

7.8%

+0.3

16,755

85.0%

△0.3

80,232

66.6%

+1.6

Total

* FAX-OCR DOTKUL service was terminated in May 2021 due to declining utilization.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

32
TRUSCO NAKAYAMA Investor Relations

D-5. Key indicators (human resources)▮ Number of Employees [Consolidated]
As of June 30, 2022
Executives
Executive officers
Career (overseas and domestic)
Carrier (regional)
Digital career
Logistics career
Area
Logistics area
Specialist
ExpertLogistics
SupportContract employees
Overseas subsidiaries
Seconded to health insurance
association
Seconded to Nakayama Visually
Impaired Welfare Foundation
Total number of employees(excluding executives)
Part-time employees
Total▮ Average age and annual income(Unit: persons)Female

Male

Total

YoY change

1
0
164
0
0
0
298
2
13
0
88
0
1
23

9
1
429
5
0
0
297
17
12
0
256
0
38
23

10
1
593
5
0
0
595
19
25
0
344
0
39
46

△1
△1
△15
+5
±0
±0
+16
+19
△2
±0
△7
△26
+6
+4

2

0

2

±0

0

1

1

+1

591

1,079

1,670

±0

978
1,570

348
1,436

1,326
3,006

+122
+121

Share of female employees: 35.4%, Number of female sales staff members: 52, Female employees incareer-track positions: 27.6%* The number of part-time employees represents the actual number of such workers under employment.

Average age (years)

Average annual income(10,000 yen)FemaleMale

Entirecompany

Career

Area

Logistics

Entirecompany

2021

32.8

43.2

39.6

724

596

456

615

2020

32.1

41.9

38.4

721

601

461

619

2019

31.3

42.0

38.2

758

642

492

655

2018

30.9

42.1

38.2

804

680

520

701

2017

30.7

42.7

38.6

805

696

541

715

* The total average annual income includes executive officers and excludes
financial bonds provided as retirement benefits.
* The payment of performance-based bonuses commenced in FY2014. In
2019, they were discontinued, and bonuses decreased.
* Consolidated accounting has been applied to the fiscal year ended Dec.
2019 and later fiscal years. From the fiscal year ended Dec. 2019 onwards,
the average age figure is on a consolidated basis, whereas all the averageannual income figures are on a nonconsolidated basis.

▮ Numbers of incoming and outgoing employees

No. of employees
No. of incoming
employees
No. of outgoing
employees
Turnover ratio (%)

2018(2018)

2019(2019)

2020(2020)

2021(2021)

2022(2022) 2Q[Non-consolidated]
FemaleMale[Consolidated]
FemaleMale[Consolidated]
FemaleMale[Consolidated]
FemaleMale[Consolidated]
Female
Male

557
1,051
1,608
63
72
135
20
26
46
3.5
2.4
2.8

585
1,071
1,656
52
57
109
42
44
86
6.7
3.9
4.9

589
1,085
1,674
41
46
87
37
33
70
5.9
3.0
4.0

571
1,061
1,632
26
25
51
45
45
90
7.3
4.1
5.2

591

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

1,079
1,670

42

45
87

25

23
48

4.1

2.1
2.8

33
TRUSCO NAKAYAMA Investor Relations

E. 60th Management Plan
P35

E-1. [Consolidated] Management plan

P36

E-2. [Consolidated] Quarterly businessperformance and budget (quarterly)

P37

E-3. [Consolidated] Quarterly businessperformance and budget (cumulative)

34©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

E-1. [Consolidated] Management plan
◆ Budgeting policy
The forecast is used as the entire company’s budget, which is the total of the "annual budget of each branch prepared by thebranch manager throughout Japan." The branch managers, who are familiar with their market, formulate their respective branch's
budget as they are in charge of developing their branch strategy including staffing and are ultimately accountable for their branch.

(Unit: million yen)

Actual results for FYE
December 31, 2021

Plan for FYE
December 31, 2022

226,833

243,500

Gross profit

47,670

Selling, general andadministrative expenses (SGA)(depreciation included in SGA)

Share

Year-on-yearchangeー+7.3%

51,720

21.2%

+8.5%

34,67337,470

15.4%

+8.1%

6,929

6,853

2.8%

△1.1%

Operating income

12,997

14,250

5.9%

+9.6%

Ordinary income

13,555

14,600

6.0%

+7.7%

Profit attributable to owners ofparent11,596

9,960

4.1%

△14.1%

35.50 yen

38.00 yen

Net sales

Dividend per shareーー

Figures for fiscal year 2021 are retroactively applied due to a change in accounting policy.
In the fiscal year ended December 31, 2021, approximately 3,400 million yen was recorded as extraordinary
income due to the sale of real estate.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

35

TRUSCO NAKAYAMA Investor Relations

E-2. [Consolidated] Quarterly budget and business performance(quarterly)▮ FYE December 31, 2022 Second Quarter (Quarterly)(Unit: million yen, %)1st Quarter (-1 day)2nd Quarter (±0 day)

Share

Share

YoY change

Actual results

YoY change Actual results

Budget61,130 100.0+6.1

59,543 100.0+ 8.2

Actualresults

61,159 100.0+6.1

59,524 100.0+ 8.2

Budget12,65220.7+2.1

12,602

21.2

+ 5.4

Actualresults

12,88321.1+3.9

12,495

21.0

+ 4.5

Budget

9,257

15.1

+7.9

9,281

15.6

+ 9.5

Actualresults

9,395

15.4

+9.5

10,05016.9+ 18.6

Budget

3,395

5.6

△11.0

3,321

5.6

△ 4.8

Actualresults

3,488

5.7

△8.6

2,445

4.1

△ 29.9Budget

3,429

5.6

△14.7

3,502

5.9

△ 5.2

Actualresults

3,671

6.0

△8.6

2,475

4.2

△33.0

Budget

2,334

3.8

△14.5

2,387

4.0

△ 5.4

Actualresults

2,534

4.1

△7.1

1,715

2.9

△ 32.0

3rd Quarter (+3 days)
BudgetShare

YoY change

4th Quarter (+1 day)BudgetShare

59,442 100.0

63,385 100.0

12,532

21.1

13,934

22.0

9,273

15.6

9,659

15.2

3,259

5.5

4,275

6.7

3,287

5.5

4,382

6.9

2,242

3.8

2,997

4.7

YoY change

Net sales

Gross profit

Selling, generaland administrative
expenses (SGA)

Operating income

Ordinary income

Quarterly profit
attributable toowners of parent

Figures for the first and second quarters of the fiscal year ended December 31, 2021 are retroactively
applied due to a change in accounting policy.

36©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

E-3. [Consolidated] Quarterly budget and business performance(cumulative)▮ FYE December 31, 2022 Second Quarter [Cumulative](Unit: million yen, %)1st Quarter (-1 day)2nd Quarter (±0 day)

Share

Share

YoY change

Actual results

YoY change Actual results

Budget61,130 100.0+6.1

120,673 100.0+7.1

Actualresults

61,159 100.0+6.1

120,683 100.0+7.1

Budget12,65220.7+2.1

25,25420.9+3.7

Actualresults

12,88321.1+3.9

25,37921.0+4.2

Budget

9,257

15.1

+7.9

18,53815.4+8.7

Actualresults

9,395

15.4

+9.5

19,445

16.1

+14.0

Budget

3,395

5.6

△11.0

6,716

5.6

△8.1

Actualresults

3,488

5.7

△8.6

5,933

4.9

△18.8

Budget

3,429

5.6

△14.7

6,931

5.7

△10.1

Actualresults

3,671

6.0

△8.6

6,147

5.1

△20.3

Budget

2,334

3.8

△14.5

4,721

3.9

△10.1

Actualresults

2,534

4.1

△7.1

4,250

3.5

△19.1

3rd Quarter (+3 days)
BudgetShare

180,115 100.0

YoY change

4th Quarter (+1 day)BudgetShare

YoY change

243,500 100.0

Net sales

37,78621.0

51,72021.2

27,811

15.4

37,470

15.4

9,975

5.5

14,2505.9

10,218

5.7

14,600

6.0

6,963

3.9

9,960

4.1

Gross profit

Selling, generaland administrative
expenses (SGA)

Operating income

Ordinary income

Quarterly profit
attributable toowners of parent

Figures for the first and second quarters of the fiscal year ended December 31, 2021 are retroactively
applied due to a change in accounting policy.

37©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

F. ESG Information
P39

F-1. TRUSCO's "Gentleness for the Future" ProjectP40

F-2. Material issues

P41

F-3. Sustainability indicators

38©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

F-1. TRUSCO "Gentleness, to the future ..."▮ TRUSCO "Gentleness, to the future ..."Project
We have been making various environmental efforts under ourenvironmental philosophy "Gentleness for the Future" since 1998, basedon our desire "to be a global environment-friendly company so that oursmall efforts will lead to great compassion for the future." The idea ofconnecting the global community to the future has been ingrained in thecompany for more than 20 years before the term "sustainability" became
popular. Until now, "Gentleness for the Future" has only referred to theenvironment. From now on, as part of TRUSCO's "Gentleness for the
Future" Project, we will work toward the future of people and society,including the global environment.

▮ Sustainability Basic Policy - TSV
Under the motto, "Business must serve people and society," the Company will create
both social value and corporate value through its businesses to help resolve social
issues and build sustainable local communities.
* The term TSV was created by combining TRUSCO and Creating Shared Value (CSV).

Based on this basic policy, we will continue our efforts toward thefuture of people and society.

39©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

F-2. Material issues▮ Material Issues — To be a sustainable company with low environmental impact
On the basis of its basic TSV policy, the Company identified the material issues it faces for sustainability.
The Company will address these issues through its business with a view towards the establishment of asustainable society.

(1) Total optimization of the supply chain
Become a platform operator supporting manufacturing
and optimize the supply chain to establish sustainable
pro tool distribution that is both human andenvironmentally friendly.

(4) Environmental actions through businessactivities
Work to reduce the environmental impact of theCompany's business activities, PB products and also
the users of the Company's products to help theJapanese manufacturing industry with its
environmental activities.

(2) Planning and development of productsthat respond to diversifying needs(5) Contribution to stakeholders andlocal communities

Develop and provide PB products with original value tosuit diversifying needs and trends among those on
manufacturing shop floors to help rationalize
manufacturing operations and increase productivity andcompetitiveness.

Cherish the relationships with stakeholders throughsupport for people with disabilities andcommunication with local communities and society
through sponsorships and advertising.

(3) Development of environments andpersonnel to enable them to fully display
their personal abilities(6) Governance based on a stance ofchoosing the proper actions

Provide an environment that ensures that personnel arehighly motivated and that enables them to display theirabilities to the fullest degree to consequently ensurecorporate growth.

Improve the fairness and transparency ofmanagement and implement swift and appropriate
decision-making to conduct business activities that
conform to laws and social norms.

40©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

F-3. Sustainability indicators▮ TRUSCO power generation installations▮ CO₂ emissions(solar and wind power) at 19 locations(as of the end of 2021)

Annual power generation in 2021

Scope1 1,941.4t-co₂

2,604,757kWh
Renewable energy power self-sufficiency 16.5%

Scope2 7,154.2t-co₂▮ Disclosure of Scope 3
We have been working to optimize the entire supply chain and reduce greenhouse gas emissions in the supply chain
by strengthening our User Direct Shipment Service and promoting the use of MRO stockers. Including those efforts,
we are currently conducting analyses for the disclosure of Scope 3 and will make efforts to disclose it in stages.
Workshop▮ Sales of repair workshop "Naojiro"

Naojiro ▮ Role of "Naojiro"(Unit: million yen)
Full year budget"Naojiro" is a service that maintains the safety and precision thatare essential for pro tools, and aims to reduce the environmental
burden and contribute to cost reduction by allowing familiar tools
and equipment to be used for a long time. In this service, delivery
drivers and sales personnel collect products to be repaired asneeded. This means that clients are not required to pack items or
pay freight fees. Therefore, this service ensures both the reuse of
pro tools and client efficiency. In January 2022, the Company willrelaunch its Naojiro section to popularize and enhance thisservice.

8 services of repair workshop "Naojiro"

2018

2019

2020

2021

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2022
2Q

RepairRegrinding

Calibration

Reuse

Processing

Maintenance

Assembly

Construction
andinstallation

41
TRUSCO NAKAYAMA Investor Relations

G. References
P43

G-1. Stock information

P44

G-2. Index comparison in the industry

P45

G-3. The Company's sales index and industrial
production index

42©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

G-1. Stock information▮ Shareholder information(Unit: persons)2019
End ofDecember2020
End ofJune

2020
End ofDecember

2021
End ofJune

2021
End ofDecember2022
End ofJune

Shareholders total

40,106

23,697

16,336

14,903

14,406

16,212

Holder of share

39,49422,887

15,514

14,03013,52815,190Holder of shares less than
one unit

611

809

821

872

878

1,021

Treasury shares

1

1

1

1

0

1

Financial institutions andsecurities companies

61

64

65

69

61

59

Domestic corporations

690

574

553

544

533

546

Overseas corporations, etc.

252

210

201

203

203

212

Individuals and others

39,102

22,84815,516

14,086

13,60815,394

Treasury shares

1

1

1

1

1

1

▮ Change in stock price index
Movements of each indicator are quantified with the figures
in January 2010 set as 100.

[Revised stock prices]
TRUSCO Nakayama(632 yen)
Nikkei Stock Average(10,198.04)

TOPIX(901.12pt)

TRUSCO Nakayama(1,716 yen)

271.5
Nikkei Stock Average(26,393.04 yen)

258.8
207.6 TOPIX(1,870.82pt)

January 2010
©2021 TRUSCO NAKAYAMA CORPORATION All
Rights Reserved©2022 TRUSCO NAKAYAMACORPORATION All Rights Reserved

June 2022

Friday, July 29, 2022
The Company's Stock
Closing price
1,888 yen
Nikkei Stock Average
Closing Price
27,777.07 yen
TOPIX
1,940.31pt

43
TRUSCO NAKAYAMA Investor Relations

G-2. Index comparison in the industry▮ Performance of trading companies and direct sales companies (listed companies)
in the same industry
Trading companies in the machine tools industry include the following companies, but they operate differently in the wholesale
and retail sectors, and each handles different core products. The Company does not handle large machinery such as machine
tools, and mainly handles consumable supplies.
Due to change in accounting policy, year-on-year changes are not stated for companies marked with*.

[Wholesale]
Closing month
YAMAZEN CORPORATION

2022

Net sales (million yen)

Year-on-yearchangeMarketcapitalization(100 million yen)

March

Actualresults

501,872*-891

462,725*-

797

YUASA TRADING CO.,LTD.

2022

March

Actualresults

NICHIDEN Corporation

2022

March

Actualresults

123,964+ 20.6622

MARUKA FURUSATOCORPORATION

2021

December

Actualresults

157,000-

732

Naito & Co., Ltd.

2022

February

Actualresults

44,070*-95

SUGIMOTO & CO., LTD

2022

March

Actualresults

43,120*-211

TRUSCO Nakayama
Corporation

2021

December

Actualresults

229,342

+ 7.5

1,241

1,562,093

-

4,589

ー

Total of 7 companies[Retail]
Closing month
MISUMI Group Inc.

2022

March

MonotaRO Co.,Ltd.

2021

December

Total of 2 companies

ーActualresults
Actualresults

Net sales (million yen)

366,160
189,731555,891

Year-on-yearchange+ 17.8+ 20.6+ 38.4* For companies that announce consolidated accounting, figures for consolidated accounting are shown.
* All figures represent actual results and forecasts announced as of July 29, 2022.
* Market capitalization is based on the closing price on July 29, 2022.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Marketcapitalization(100 million yen)

9,356
10,176
19,53244

TRUSCO NAKAYAMA Investor Relations

G-3. The Company's sales index and industrial production index▮ Changes in the Company's sales index and industrial production index

TRUSCO sales index

Industrial
production index

2015

2016

2017

2018

2019

2020

2021

(Consolidated)(Consolidated)(Consolidated)* Index standard: Year 2015 set as 100* Industrial production index is the figure published by the Ministry of Economy, Trade and Industry on January 31, 2022.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

45

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