The 59th Business Year Business
Performance Data Analysis
Fiscal Year Ending December 2021
First Three Quarters
Released on October 20:

Vending machine-type MRO stockers
Featuring unmanned 24/7 sales operations for many and unspecified
customers, cash and cashless payments, and the reduction of criminal
risk to continue the product's popularization in the market

Trusco Nakayama Corporation
Announced November 1, 2021
Atsushi Shimozu, General Manager of the
Corporate Planning Div.
Mayumi Takata, Manager of the Corporate
Planning and IR Section
Mika Takahashi, Corporate Planning & IR Section
Trusco Fiorito Bldg. 10th floor, 4-28-1 Shinbashi,
Minato-ku, Tokyo 105-0004, Japan
Phone: +81-3-3433-9840
Fax: +81-3-3433-9881
E-mail: info@trusco.co.jp

Upward Revision to Business Performance Forecast(announced on November 1, 2021)
The Company revised its forecast of profit attributable to owners of parent upwards on November 1,
2021 after the recording of extraordinary income in association with its transfer of non-current assets.
Given that this extraordinary income is not directly related to business activities, the Company has notrevised its forecast of dividend per share based on its dividend policy announced in February 2021.

▮ Revision to Budget for 59th Business Year (Ending December 2021)
Previous forecast
announced
on Mar. 15, 2021

Forecast after revisionannounced
on Nov. 1, 2021

Change fromprevious
forecast

YoY change

Net sales¥227,520 million¥227,520 million

-

+6.6%

Operating income¥13,170 million¥13,170 million-+19.5%

Ordinary income¥13,820 million¥13,820 million-+19.6%

Profit attributable toowners of parent¥9,520 million¥11,970 million+25.7%+49.5%Net income per share¥144.37¥181.52+¥37.15+¥60.09

Dividend per share¥36.50¥36.50-+¥6.00©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

2

Company overview
Founding

Representative

As of the end of September 2021 ➣ Change in Net Sales, Ordinary Income andDepreciation

May 15, 1959

(Unit: 100 million yen)
Net sales

Tetsuya Nakayama, President
Chairman, The Nakayama Visually 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

93 in total:
90 domestic bases: 2 head offices, 61 sales branches,
27 distribution centers
3 overseas bases: Local subsidiaries:
Thailand and Indonesia
Representative office: Germany (Dusseldorf)

Capital stock

5,022,370,000 yen

Listed stock exchangeFirst section of the Tokyo Stock Exchange (Code number: 9830)

Number of employees

2,893 [Consolidated]

Credit rating

A (Rating and Investment Information, Inc.)

Line of business

Wholesaler of industrial equipment such as machine tools, distribution
equipment and environmental safety equipment (and consumables usedin factories) and planning and development of products under thecompany’s own brand, TRUSCO

Net sales

Ordinary income

2,275

Depreciation

2,206
2,142

Ordinary
income

2,134

1,950
145

146

27

36

2017

2018

[Non-consolidated]

141

138
Depreciation

115
48

2019

65

69

2020

2021
forecast[Consolidated]* Depreciation increased with aggressive investment
in logistics and digital technologies.

Business flow
Suppliers

Manufacturers

Trusco Nakayama (wholesaler)

Factory route2,886(up 234 companies)
Of these, 247 areoverseas manufacturers(up 35 companies)
Information in parentheses ( )indicates change from the endof the previous fiscal year.

e-business route

Main sales agents, 5,512 companies

Target markets (main users)

Machine tool dealers, dealers of welding
materials, dealers of pipe materials,
conductor dealers, dealers of electricmaterials, dealers of packaging materials

Manufacturers, construction
companies

Mainly internet order companies

Manufacturers, general consumers

Home center route

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

Businesses conducting outdoor work,
general consumers

Overseas route

Mainly overseas dealers

Overseas manufacturers©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations3

A-(1) [Consolidated] Business performance for the first three quarters of
the FY ending December 2021
- Net sales: Up 6.3% YoY, Down 0.2% from budget. Number of business days: 179 (Up 1 YoY) * The number of business days is the non-consolidated number.
- Gross profit margin: 21.2%, down 0.5 percentage points YoY=> The gross margin ratio dropped following the end of special demand for products with high gross margin ratios related to the prevention of COVID-19 in the previous
fiscal year.
- SGA: Down 0.2% YoY after a decrease in commission expenses following a fall in initial action expenses concerned with the core system revamp in 2020 and a decrease inadvertising expenses after the discontinuation of the shareholder benefit program (for details about SGA, see pp. 22-23.)
First 3Qs of FY ended Dec.
2020

Actual results

Share
(%)

First 3Qs of FY ending Dec. 2021

Actual results

Share
(%)

YoY change(%)

Share ofbudget(%)

BudgetChange frombudgetChangefrombudget(%)

Net sales¥158,753 million－¥168,708 million

－

+6.3

¥169,051 million－-¥342 million-0.2

Gross profit¥34,491 million

21.7¥35,754 million

21.2

+3.7

¥36,654 million

21.7-¥899 million-2.5

Selling, general andadministrative expenses(SGA)¥26,353 million

16.6¥26,294 million

15.6

-0.2

¥26,500 million

15.7-¥205 million-0.8(depreciation included in
SGA)¥4,723 million

3.0¥5,144 million

3.0

+8.9

¥5,202 million

3.1-¥58 million-1.1

Operating income¥8,138 million

5.1¥9,459 million

5.6

+16.2

¥10,154 million

6.0-¥694 million-6.8

Ordinary income¥8,459 million

5.3¥10,014 million

5.9

+18.4

¥10,708 million

6.3-¥693 million-6.5

Profit attributable toowners of parent¥5,714 million

3.6¥7,480 million

4.4

+30.9

¥7,374 million

4.4+¥106 million+1.4

Net income per share¥86.66－¥113.43©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved－－¥111.82－+¥1.61

TRUSCO NAKAYAMA Investor Relations－

4

A-(2) [Non-consolidated] Business performance for the first threequarters of the FY ending December 2021
First 3Qs of FY ended Dec.
2020

First 3Qs of FY ending Dec. 2021

BudgetShare ofbudget(%)

Change frombudgetChangefrombudget(%)+6.2¥168,665 million－-¥236 million

-0.1

21.1

+3.5

¥36,464 million

21.6-¥878 million-2.4¥26,094 million

15.5

-0.2

¥26,285 million

15.6-¥190 million

-0.7

2.9

¥5,092 million

3.0

+9.0

¥5,202 million

3.1-¥110 million-2.1¥8,228 million

5.2¥9,491 million

5.6

+15.3

¥10,179 million

6.0-¥687 million-6.8

Ordinary income¥8,520 million

5.4¥10,031 million

6.0

+17.7

¥10,729 million

6.4-¥698 million-6.5

Net income¥5,772 million

3.6¥7,502 million

4.5

+30.0

¥7,404 million

4.4¥98 million+ 1.3

Sales of PB goods¥31,284 million

19.7¥32,500 million

19.3

+3.9

¥32,979 million

19.6-¥479 million-1.5

Actual results

Share
(%)

Actual results

Share
(%)

Net sales¥158,666 million－¥168,429 million－

Gross profit¥34,388 million

21.7¥35,586 million

Selling, general andadministrative expenses(SGA)¥26,159 million

16.5(depreciation included in
SGA)¥4,672 million

Operating income

Net income per share¥87.54－©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved¥113.77－

YoY change(%)－¥112.28－+¥1.49

TRUSCO NAKAYAMA Investor Relations－5

A-(3) [Consolidated] Company-wide monthly sales and [Non-consolidated] sales
per day for the first three quarters of the FY ending December 2021
▮ [Consolidated] Company-wide monthly sales▮ [Non-consolidated] Change in average daily sales(all business offices)* Figures for Jan. to Sep. represent actual values while those for Oct. and latermonths are budget values.

23,689

Sales for the fiscal year under review (million yen)( ) Sales in the same month previous year (million yen)

(22,011)22,00020,086

19,814 19,832(18,222)
20,00018,742

18,118(18,033)(17,577)(18,274)

16,81318,00016,438(17,494)(18,735)(18,073)

17,135

Orders are constantly placed for consumables usedin factories. We carry out a year-on-year comparisonof sales per day.
Our sales increase during the peak periods of Marchwhen many companies close their accounts.

(15,268)(14,664)(17,206)

19,144 18,823(17,842)

18,539* Figures for Jan. to Sep. represent actual values while those
for Oct. and later months are budget values.

16,000+14.7
14,000

+12.2

+10.2

+11.1

Sales for the fiscal year under review (million yen)( ) Sales in the same month previous year (million yen)

12,000+7.6+5.9

10,000

+3.9

+9.4

911
(905)

1,029
1,004
(1,050)(1,015)

890
(857)

932
(813)

911
(826)

924
(836)

900
(846)

956
(874)

894
(820)

989

988
(937)

(933)

5.4

6.0

8,000

+5.5
+4.1

14.6
3.8

6,000

10.3

Year-on-year change (%)

9.4

9.0

6.3

△0.9

4,000

Year-on-year change (%)

-1.0
2,000

10.5

0.6

△4.5

-2.0

0

Number ofbusiness
days

Jan.
18

Feb.
18

Mar.
23

Apr.
21

May
18

Jun.
22

Jul.
20

Aug.
19

Sep.
20

Oct.
21

Nov.
20

Dec.
20

(-1)

(±0)

(+2)

(±0)

(±0)

(±0)

(-1)

(+1)

(±0)

(-1)

(+1)

(±0)

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

TRUSCO NAKAYAMA Investor Relations

Dec.

6

B-(1) [Consolidated] Net sales, gross profit margin and ordinary income
by sales route▮ Net sales by sales routeFirst 3Qs of FY ending Dec. 2021

First 3Qs of FY ended Dec. 2020
Gross profit
Ordinary income
marginNet sales

Sales route

Actual results

Share

Actualresults

Actual results

Net sales

Actual results

Share

YoY change

YoY change

Gross profit margin

BudgetChange frombudgetChange frombudget (%)

Actualresults

YoY change

Ordinary income

Actual results

YoY change

Factory route ¥116,674 million

73.5%

21.2% ¥5,803 million ¥121,339 million

71.9% +¥4,665 million+4.0%¥122,196 million -¥856 million

-0.7%

20.7%

-0.5pt¥6,760 million+16.5%

e-businessroute¥28,612 million

18.0%

25.5% ¥2,376 million¥32,812 million

19.5% +¥4,199 million+14.7%¥32,383 million+¥428
million

+1.3%

23.9%

-1.6pt¥2,546 million+7.1%

Home center
route¥12,580 million

7.9%

17.7%

¥189 million¥13,326 million

7.9%+¥746 million+5.9%¥13,216 million+¥109
million

+0.8%

17.8%

+0.1pt¥323 million+71.0%¥886 million

0.6%

30.3%

-¥175 million¥1,229 million

0.7%+¥343 million+38.7%¥1,253 million-¥23 million

-1.9%

31.6%

+1.3pt-¥14 million-¥158,753 million

100%

21.7% ¥8,459 million ¥168,708 million

100% +¥9,954 million+6.3%¥169,051 million -¥342 million

-0.2%

21.2%

-0.5pt¥10,014 million

Overseas
route

Total

+18.4%▮ Factory route: Up 4.0% year on year
The Company increased inventories to suit market needs in an effort to increase convenience for clients. The recovery of factory operations andcapital expenditures increased sales of work supplies and hand tools related to the operations and distribution and storage equipment linked
with capital expenditures. (See p. 10)▮ e-business route: Up 14.7% year on year
Sales to mail order companies surged 15.1% year on year and those to companies participating in Orange Commerce increased 13.4%.
Continued efforts to link the database of nearly 3.29 million products to clients' systems and the enhancement of original distribution services
supporting packing styles matched to the needs increased transactions with mail order companies. (See pp. 11-12)▮ Home center route: Up 5.9% year on year
The active proposal of in-store displays to general hardware mass discounters and pro-tool shops continued. Supporting the strong
performance, the in-store pickup service with 480,000 items in stock, the acquisition of new accounts and proposals for in-store displays helped
increase sales. (See p. 13)▮ Overseas route: Up 38.7% year on year
Amid the restrictions on social activity during the pandemic, the Company worked to increase inventory to meet market needs and to expand
transactions with existing clients through solutions to problems. (See p. 14)©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations7

B-(2) [Consolidated] Change in monthly sales by sales segment▮ Change in monthly sales earned via factory route▮ Change in monthly sales earned via e-business route* Figures for Jan. to Sep. represent actual values while those for Oct. and later months
are budget values.
Sales for the fiscal year under review (million yen)

* Figures for Jan. to Sep. represent actual values while those for Oct. andlater months are budget values.

( ) Sales in the same month previous year (million yen)

3,999

4,535
Sales for the fiscal year under review (million yen)( ) Sales in the same month previous year (million yen)

(3,853)

3,484
3,250

(3,245)(3,236)(3,318)3,644(3,174)(2,743)(3,026)

3,693 3,796 3,797 3,767

3,518

3,318

3,367

(3,221) (3,320) (3,146)(3,338)(2,792)

17,326(16,647)
+20.9

+20.6

+20.5

+20.7

+17.7

(13,242)

13,422

13,156(13,193)(13,796)

11,760(13,138) (13,771)

13,554

13,755 13,416(12,854)(13,181)(12,622)

11,831

12,176(10,381)(11,029)

+7.4

+ 8.4

+ 9.0

+ 9.0
+ 5.4

+ 14.0

+14.3

+12.3

+ 4.7

+ 10.4+ 1.8

Numberofbusiness
days

+12.9

Year-on-year change (%)+7.6(12,906)+ 4.1 + 1.7

+14.7

+10.8

14,327 14,415

14,355

Jan.

Feb.

Mar.

Apr.

Sep.

Oct.

Nov.

18

18

23

21

May

18

Jun.

22

Jul.

20

Aug.

19

20

21

20

Dec.

20

(-1)

(±0)

(+2)

(±0)

(±0)

(±0)

(-1)

(+1)

(±0)

(-1)

(+1)

(±0)

▮ Change in monthly sales earned via home centers* Figures for Jan. to Sep. represent actual values while those for Oct. and later months
are budget values.
Sales for the fiscal year under review (million yen)
1,676
(1,405)Year-on-year change (%)

△ 4.6

1,305
(1,164)( ) Sales in the same month previous year (million yen)

1,540 1,526 1,581(1,491)

1,348(1,433)(1,561)

1,322(1,112)

1,575
1,524
1,450 (1,572) 1,466 (1,447) 1,493(1,493)(1,470)(1,367)(1,473)△ 8.9

Year-on-year change (%)
21.3

19.3

12.1
3.3

6.5

6.1

1.3

5.3

0.2

-10.3

-0.3

Numberofbusiness
days

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

18

18

23

21

18

22

20

19

20

21

20

20

(-1)

(±0)

(+2)

(±0)

(±0)

(±0)

(-1)

(+1)

(±0)

(-1)

(+1)

(±0)

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Dec.
Numberofbusiness
days

-0.1

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

18

18

23

21

18

22

20

19

20

21

20

20

(-1)

(±0)

(+2)

(±0)

(±0)

(±0)

(-1)

(+1)

(±0)

(-1)

(+1)

(±0)

TRUSCO NAKAYAMA Investor Relations

Dec.

8

B-(3) [Consolidated] Factory route: Business performance by region,industry and sales route▮ Factory route: Sales constituent ratio by industry▮ Factory route: Sales by region

First 3Qs of FY ending Dec. 2021

Factory route net sales for the first 3Qs of FY ended Dec. 2020 (million yen)
Automotive dealers 2%
Civil engineering and building
machinery lease operators 2%

Factory route net sales for the first 3Qs of FY ending Dec. 2021 (million yen)( ) YoY change

Dealers in packaging
materials 2%

28,298Dealers in electricalmaterials 3%(+0.0%)
28,29722,344

Dealers of piping
materials 4%(+4.2%)

17,033 21,444
12,853(+4.8%)
12,266(+6.0%)

11,341

16,076(+7.1%)

10,594

Others12%

13,186(+3.9%)
12,691

4,834

Conductor
dealers 4%

11,447(+6.2%)

Machine tool dealers
51%

Dealers of
welding materials
14%

Hardware retailers 6%

10,783(+7.0%)
4,519
Hokkaido and Kita-Kanto andTokyo
TohokuShinshu
Metropolitan

Hokuriku

Tokai

Kinki

Chugoku andShikoku

Kyushu▮ Factory route sales by industry
First 3Qs of FY ended Dec. 2020
Net salesFirst 3Qs of FY ending Dec. 2021

Gross profit margin

Net sales

Gross profit margin

Sales route
Actual results

Share

Actual results

Actual results

Share

YoY change

Actualresults

YoY change

Machine tool dealers¥58,305 million

50.0%

20.6%

¥61,496 million

50.7%

+5.5%

20.1%

-0.5ptDealers of welding materials¥17,072 million

14.6%

22.0%

¥17,108 million

14.1%

+0.2%

21.6%

-0.4ptOther manufacturing related (incl. physical and chemical materials,
conductors and packaging materials dealers)¥19,110 million

16.4%

21.2%

¥20,232 million

16.7%

+5.9%

20.6%

-0.6ptConstruction related (incl. hardware, piping materials and electricalmaterials dealers and civil engineering and lease operators)¥22,185 million

19.0%

22.0%

¥22,502 million

18.5%

+1.4%

21.7%

-0.3ptTotal net sales via factory route¥116,674 million

100.0%

21.2%¥121,339 million

100.0%

+4.0%

20.7%

-0.5pt©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations9

B-(4) [Consolidated] Sales via the e-business route▮Sales via e-business routeFirst 3Qs of FY ended Dec. 2020

Gross profit
marginNet sales▮ End of specialization in pro tools

First 3Qs of FY ending Dec. 2021

Net sales

Gross profit margin

Sales route
Actual results

Share

YoY change

Actualresults

YoY change

24.8%¥25,615 million

78.1%+15.1%

23.0%-1.8pt

22.2%

28.1%

¥7,197 million

21.9%+13.4%

27.5%-0.6pt100.0%

25.5%¥32,812 million

100.0%+14.7%

23.9%-1.6ptActual results

Share

Actual results

Mail order companies¥22,263 million

77.8%

Companies participating in
Orange Commerce(Trusco's electronic central
purchasing system)¥6,349 million

Total net sales via ebusiness route¥28,612 million

The Company had long specialized in dealing in
professional tools as the mainstay of the machineryand tools wholesaler. However, the Company has
been increasingly working with online shop
operators in recent years. A majority of their end
users are general consumers. To increase theconvenience of procurement, the Company has
decided it needs to supply a broader array of items
instead of items in limited areas and ended its
specialization in pro tools.
The Company has no intention of blindly widening
its lineup of products. The move started withproducts from its existing suppliers that it had
previously not dealt in.

▮ Sales to mail order companies: Sales percentage by industry▮ Trend in sales to mail order companies (Billion yen)First 3Qs of FY ending Dec. 2021
( ) YoY change

Full year budget¥34.5 billion yen(+15.7%)

Dealers of physical chemical
and medical devices 2%

Dealers of piping
materials 2%
Others 3%

Hardware retailers 2%
Machine tool dealers 4%

26.4
23.4

29.8

25.6

(+13.0%)(+15.1%)(+12.7%)

Other mail ordercompanies 5%

Yodobashi Camera,
Bic Camera, etc.

(+29.1%)

18.1(+32.6%)

Retail of homeelectrical appliances
8%

Askul, Otsuka
Corporation, etc.

2017

2018

2019

2020

First 3Qs of
2021

MRO mail ordercompanies
44%

Stationery mailordercompanies
13%

MonotaRO,
Misumi, etc.

General mail ordercompanies
17%
Amazon, etc.

TRUSCO NAKAYAMA Investor Relations10

B-(5) [Consolidated] Scale of participation in Orange Commerce(Trusco's electronic central purchasing system)▮Sales to companies participating in Orange Commerce (Trusco's electronic
central purchasing system) and the number of companies participating in it

Use-first-pay-later tools

2000▮ MRO Stocker( ) YoY change
Sales to companies participating in Orange Commerce (billion yen)
1800
Under the corporate message of Keep it Up, Japanese Monodzukuri,
1,859
Trusco Nakayama is committed to its mission of stably supplying
No. of companies participating in Orange Commerce
1600
1,414
companies
consumables to manufacturers, constructors and other users engaging in
production. To make the dream of zero delivery lead time a reality,
1,235
Full year budget 1400
President Tetsuya Nakayama came up with the idea of MRO Stocker,¥9.1 billion (+7.3%)
1,057
1200
characterized by a business model that emulates the business practices of992
traditional medicine sellers from Toyama Prefecture. In this system,
1000
consumables expected to be ordered are left on users' premises and users
8.5
8.0
800are invoiced only for the items they have picked and used.
(+6.2%)
7.2
7.1(+10.5%)6.1
600▮ Introduction of MRO Stocker(+17.5%)(+13.4%)(+19.8%)400
Monitoring inventory status remotely

200

0
2017

2018

2019

2020

First 3Qs of 2021

* A new method of counting the companies participating in Orange Commerce is applied from the third
quarter of 2021 onwards.

Suppliers[Manufacturers]

2,652
companies

Stock centers:

26

This purchasing system, mainly adopted by large-lot users (manufacturers), is
designed to curtail their material and equipment procurement costs and increase
their business operational efficiency through the Internet-based management ofmaterial and equipment purchases.
Receipt of orderdata

Search Trusco Orange Book fordesired products and placeorders on the internal system.

OrangeCommerce

TruscoNakayama

Dealers
Deliveryof goods

Customers
Deliveryof goods

Conducting business among customers, distributors and Trusco Nakayama by
connecting customer’s purchasing system with Trusco’s central purchasing system

Users

Delivery(Restocking)[General users]
Use in smartphone

Payment
Core system[Administrators]
Confirm detailed
statement in PC

Designated
Clients¥41.5 billion

2,440▮ Orange Commerce (Trusco's electronic central purchasing system)

DeliveryInventory value:

Domestic:
Foreign:

Saves trouble

Distribution Centers

Payment
based on usage

212
Information relating to automatic inventory orderplacement and receipt is synchronized.

Figures are as ofthe end of 2020.

There are various scenarios for the introduction of MRO Stocker. They
include a client mentioning it to a prospective user and involvement of asales agent after a direct request from a user on the Company's website. In
either case, the Company does not directly sell it to users. MRO Stocker isalways introduced via clients.
It takes roughly one to three months from the request to the introduction.

Accelerated introduction of MRO Stocker (use-first-pay-later tools)

Introduced to 137 companies as of the end of
September 2021
TRUSCO NAKAYAMA Investor Relations11

B-(6) [Consolidated] Sales to top 10 clients in the home center route
As a professional-tool wholesaler, Trusco Nakayama has focused on dealing in pro tools and actively proposed to general hardware mass discounters that allot part of theirfloor spaces to pro-tool shops.
In the future, it will increase collaboration with pro-tool shops and general hardware mass discounters with material centers and exert its comprehensive marketing power toenhance services for their customers.

▮ Ranking of sales to general hardware mass discounters
Ranking

Name of clientFirst 3Qs of
FY ended
Dec. 2020(Unit: million yen, %)First 3Qs of
FY endingDec. 2021

YoY change

1

DCM Hodaka (Pro-tool Shop)

1,553

1,822

+17.3

2

Kohnan Shoji

1,352

1,644

+21.6

3

Nufco

1,398

1,493

+6.8

4

DCM Kahma

996

1,114

+11.8

5

Royal Home Center

986

1,009

+2.4

6

Cainz

1,010

998

-1.1

7

DCM Homac

886

932

+5.2

8

Shimachu

729

662

-9.1

9

Komeri

525

568

+8.2

10

Home Center Valor

416

515

+23.8

Combined sales to top 10 companies

9,854

10,762+9.2

Combined sales via home center route12,58013,326+5.9

Percentage share of sales to top 10 companies

78.0

80.7

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Brisk sales were achieved after an increasein products procured from the Company andthe expansion of selling spaces. General
hardware mass discounters combine their
online stores and physical stores to improve
services for visiting customers. They use theCompany's stock for convenience. Sales to
pro-tool shops also increased.

■ Sales to DCM Holdings
Total: ¥4,712 million (up 7.5% year on year)
DCM Kahma, DCM Homac, DCM Daiki, DCM
Sanwa, DCM Kuroganeya, Hodaka, Keiyo, and
DCM Online■ Sales to pro-tool shops
Total: ¥2,077 million (up 19.0% year on year)
Pro-tool shops refer to dealers specializing in tools
for professional craftspeople and factory workers.
They are so compatible with our products that sales
to them are rising.

Company names are presented in abbreviated forms.

TRUSCO NAKAYAMA Investor Relations12

B-(7) Business performance of overseas subsidiaries▮ Non-consolidated business performance of overseas subsidiaries
First 3Qs of FY ending Dec. 2021

(Million yen)
Net sales

TRUSCO NAKAYAMACORPORATION (THAILAND)
LIMITED
1 baht = 3.30 yen(3.34 yen a year earlier)PT. TRUSCO NAKAYAMAINDONESIA
1 rupiah = 0.0078 yen(0.0071 yen a year earlier)

Selling, generaland administrative
expenses (SGA)

Gross profit

528

OperatingincomeOrdinary income

Net income

124

100

23

23

23

-

23.6%

19.0%

4.5%

4.5%

4.5%

YoY change+29.1%+26.9%-7.9%

Actual results

224

56

97

-

25.0%

43.6%

-

-

-

+47.4%+81.9%+16.2%---

Actual results
Share against net sales

Share against net sales
YoY change

-

-41

-39

-39

[Overall conditions for the 59th Business Year]
During the COVID-19 pandemic, Thailand kept a state of emergency in place and Indonesia re-tightened
restrictions on social activities. Overseas subsidiaries worked to increase stock according to market needs.
Solving the problems of existing clients to expand transactions is definitely necessary. They are striving todevelop their selling capabilities.
[Reference] Non-consolidated business performance in other overseas regionsFirst 3Qs of FY ending Dec. 2021

(Million yen)

Net sales
475

Actual results

Business performance in otheroverseas regions(including the Philippines, China andSouth Korea)

Share against net
sales
YoY change©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Gross profit
131

-

27.7%

+46.7%+62.7%*The consolidated gross profit margin via
overseas routes is higher than the nonconsolidated gross profit margin because of
consolidated accounting, which includes
measures such as the offsetting of internaltransactions.
TRUSCO NAKAYAMA Investor Relations13

B-(8) [Non-consolidated] Analysis of sales for the first three quarters of
the FY ending December 2021
(Million yen)
▮ Analysis of sales for the first three quarters of the FY ending December 2021

Net Sales Up 9,763 million yen
Rise in demand due Decrease in sales ofFirst 3Qs ofenvironmental
mainly to recovery in
FYending Dec.
safety equipment Decrease in others
Rise in demand due capital expenditures2021
mainly to recovery in
Net
sales
manufacturing+2,396-434-218+8,019First 3Qs of FY
ended Dec.
2020
Net sales

Details

158,666[Increased demand for consumables due mainly to recovery in manufacturing]+8,019 million yen- Hand tools (e.g. tools for manual work and electric power tools): +2,253 million yen- Work supply (e.g. adhesives and tapes): +1,956 million yen- Office and housing facility equipment (e.g. safety shoes and anti-droplet panels): +1,082
million yen and others

168,429(+6.2%)[Increased demand for machinery after the recovery of capital expenditures] +2,396
million yen- Distribution and storage equipment (e.g. trolleys and steel shelves): +1,436 million yen- Construction goods (e.g. power generators, pumps and ladders): +960 million yen[Decreased sales of environmental safety equipment] -434 million yen- Protective equipment: -372 million yen and others©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations14

B-(9) [Non-consolidated] Analysis of sales by category (large andmedium) for the first three quarters of the FY ending December 2021
▮ Sales graph by large category and details of medium category( ) YoY change (%)

Sales for the first three quarters of the FY ended December 2020 (million yen)
Sales for the first three quarters of the FY ending December 2021 (million yen)

12,138

4,842

5,353
(+10.6%)

1. Cutting tools

31,282
29,330 (+6.7%)

19,34912,937 18,412 (+5.1%)(+6.6%)

27,92025,667 (+8.8%)

29,72629,191 (+1.8%)
18,513
17,078 (+8.4%)

1. Cutting tools

3.2
2. Production
processing goods

7.7
3. Construction goods

2. Production
processing goods

3. Construction goods

4. Work supply

5. Hand tool

6. Environmental
safety equipment

Trusco’s sales

Constituent ratio

YoY change(1)Cutting tool

2,570

1.5

+17.9

(2)Drilling and thread cutting tools

2,783

1.7

+4.6

Category of goods(large category)
6. Environmental safety
11.4
equipment
21.9(3)Measurement equipment

6,761

4.0

+7.6

15.9

(4)Mechatronics

2,673

1.6

+5.1

15.5

(5)Tools for machine tools

1,576

0.9

+4.0

23.7

(6)Electronic machinery

1,925

1.1

+7.5

11.0

17.6

(7)Hydraulic tools

1,392

0.8

+1.7

11.4

7. Distribution andstorage equipment(8)Pumps(9)Welding equipment(10)Painting and interior goods
Civil engineering and building
(11)
goods

2,452
1,540
1,720

1.5
0.9
1.0

+2.1
+4.8
+0.8

16.4
18.2
26.1

1,851

1.1

-2.3

12.6

Medium category(12)Ladders and stepladders

11.5
4. Work supply

Piping and materials of(13)electronic equipment
Component, hardware, and(14)building materials(15)Cutting goods(16)Grinding and polishing goods

18.6
5. Hand tool

16.6

15,593
14,517 (+7.4%)

348
457 (-23.7%)

7. Distribution andstorage equipment

Constituent ratio
Category of goods(large category)

7,403
7,031 (+5.3%)

Gross profit
margin11.0

Medium category

8. Research
management
equipment

9. Office and housing 10. Others (including
facility equipment
catalog)

Trusco’s sales Constituent ratio

YoY change

Gross profit
margin(25)Protective equipment

15,691

9.3

-2.3

24.1

(26)Safety goods
Environment improvement
(27)
goods
(28)Air conditioning goods
Disaster and crime prevention
(29)
goods
(30)Closets and exterior goods

7,312

4.3

+8.9

25.8

1,550

0.9

+10.6

19.8

2,936

1.7

-2.1

16.2

802

0.5

+23.6

19.3

1,431

0.8

+5.1

20.5

(31)Loading goods

5,282

3.1

+4.9

17.5

(32)Conveyors(33)Transportation goods(34)Containers and vessels

842
6,969
2,755

0.5
4.1
1.6

+2.7
+12.4
+8.8

15.8
22.8
30.6

(35)Steel shelves

2,664

1.6

+7.0

27.0

713

0.4

+5.8

28.7

916

0.5

+8.4

31.6

8. Research management
22.1(36)Tool wagons
equipment
Storage and management
23.1
(37)
goods

2,250

1.3

+3.7

2,815

1.7

+11.7

5,325

3.2

+9.2

27.2

(38)Work benches

1,172

0.7

+18.8

30.2

1,062

0.6

+8.4

22.0

1,405

0.8

+7.7

18.5

5,294

3.1

+5.4

23.1

(39)Stainless goods
Research and development(40)related goods

3,196

1.9

-0.7

18.7

(41)Cleaning utensils

4,548

2.7

+7.3

21.9

(42)Stationery(43)Office miscellaneous goods(44)Electric appliances

1,718
2,363
2,410

1.0
1.4
1.4

+16.2
+5.7
+1.8

19.3
26.9
22.3

(45)OA business machinery

1,558

0.9

+23.1

25.9

(46)Office furniture

2,778

1.6

+1.9

24.8

(47)Interior goods(48)Total
Total

217
348
168,429

0.1
0.2
100.0

+7.7
-23.7
+6.2

19.4
-138.421.1

4.4(17)Chemical products

15,786

9.4+6.0(18)Factory miscellaneous goods(19)Packing and binding goods(20)Casters
Electric power tools and(21)
accessories
Pneumatic tools and(22)
accessories(23)Tools for manual work(24)Tool boxes

2,900
4,108
2,129

1.7
2.4
1.3

+3.8
+12.1
+8.0

9. Office and housing
21.8
facility equipment
16.1
31.7
18.4

7,379

4.4

+6.5

14.5

4,598

2.7

+6.5

18.2

14,5081,432©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

8.6
0.9

+11.0
+6.6

21.5
29.9 10. Others

9.2
0.2

TRUSCO NAKAYAMA Investor Relations15

B-(10) [Non-consolidated] Analysis of sales by category (small) for
the first three quarters of the FY ending December 2021

▮ Changes in sales for the first three quarters of the FY ending December 2021 ★: Coronavirus outbreak-related demand(Million yen)

Cage trolleys

Harness-type personal fallarrest systems

Shelves

Cable ties

Safety shoes (JPSA)

Superhard chips

Coolers★ Anti-droplet partitions

Heaters

Tape★ Environmental
measuring equipment

Waist belt-type personal fallarrest systems+9.6% +15.2% +21.8% +20.5%

Sales increase

0

+80
+82

+86

-31
-42
-47

-50
-59
-78

Lanterns

Repair materials

Multi-drawer document
cabinets

Sales decrease★ General-purpose
face masks★ Working gloves★ Protective glasses

Spot air conditioners
and cooling fans

★ Protective clothing

Power generators★ Masks for working withexchangeable filters★ Hand washing andmouth washing goods
Head and neckcooling equipment

Disasterrecovery goods

Heat stroke
preventative goods★ Sterilization and hygiene
goods-18.7% -47.3%-7.9%-62.7%+13.3% +11.0% +24.7%
+120
+131

+138

16
TRUSCO NAKAYAMA Investor Relations©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Adhesives

+391

-78
-124

Lift trucks and handpallet trucks+33.1%-31.4% -35.9%-21.2% -54.6% -19.3%-16.0% -20.2% -19.2%

-201
-225
-226
-245
-285
-516
-817

-22.2%-40.8% -33.6%

+195

+203

+13.8%+77.6%+225+190+141.2%+78.3%+260+204+92.5%+82.8%+163+22.6%+141

Torque management tools+ millionyen- million yen

B-(11) [Non-consolidated] Sales by category of goods featured in the TRUSCO Orange Book for the first
three quarters of FY ending December 2021
Category

Net sales

YoY change

Category

1. Cutting tools¥5,716 million+9.9% 9. Hand tools

2. Machine tools¥1,884 million+6.8%

3. Measuring & testing
instruments

Net sales

YoY change

Category

Net sales

YoY change¥13,234 million+10.9% 17. Loading equipment¥6,867 million+11.1%

10. Electric, hydraulic &pneumatic tools¥16,026 million+6.1%

18. Cleaning & janitorial
supplies¥9,410 million+4.9%¥7,487 million+10.9% 11. Protective equipment¥16,048 million-5.1% 19. Environmental supplies¥7,481 million+10.9%

4. Mechatronics parts¥2,263 million+4.5% 12. Safety supplies¥3,897 million+11.8% 20. Garden supplies¥1,535 million+12.7%

5. Hardware & building
materials¥6,067 million+9.4% 13. Packaging supplies¥10,816 million+7.8% 21. Office supplies & storage¥7,590 million+3.4%

6. Pneumatic supplies¥3,538 million

14. Construction & lighting+9.4%
supplies¥15,393 million+1.9% 22. Laboratory supplies¥4,141 million+10.9%

7. Electronics¥3,218 million+15.4% 15. Handling equipment¥5,940 million+3.5%

8. Chemicals¥10,223 million+5.4%

16. Logistics & storage
supplies¥9,699 million+9.1%● Tools that increase customers’ convenience
TRUSCO
Orange-Book.Com

TRUSCO
Orange Book

This is a set of catalogs featuring a wide range ofprofessional tools required in manufacturing. The
TRUSCO Digital Orange Book is also available,
integrating the user-friendliness of hard-copy
catalogs with the portability and search features of
online content.

Number of items listed: Approx. 471,000 (2021
edition)Number of manufacturers: 1,851
Total number of pages: 17,136
Annual circulation: 190,000 copies
Size: A4

Communication tool
T-RateThis is a one-stop website on which it is possible tosearch for and purchase professional tools. It also
supports quotation, order, return and real-time stock
status view functions. Revamped two years ago, its
search features and user-friendliness have beenenhanced.

It is a new tool for communicating with clients. It
provides a services that enables clients to freely ask
questions about products and to receive the latest
information.

Number of items featured: Approx. 2.71 million
Share of orders received via computer systems:
85.2%
Safety data sheets, drawings and contained chemical
substances investigation sheets are downloadable.
Available 24 hours per day(1) Chat with the Company's staff(2) Check the status of deliveries to understandwhen deliveries will arrive and what is being
delivered(3) Timeline for distributing information about theCompany's activities and the products it pushes©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

T-Rate features

TRUSCO NAKAYAMA Investor Relations17

B-(12) [Non-consolidated] Sales of private brand (PB) goods for the first threequarters of the FY ending December 2021
For PB goods, demand for environmental safety equipment related to the prevention of COVID-19 infections paused. Manufacturing rallied. Salesof other products either increased or decreased slightly year on year.

▮ Change in sales of PB goods▮ Private Brand (PB) goods

Million yen( ) YoY change

Full year plan:¥44.0 billion
32,500(+3.9%)

40,144(+8.3%)

43,596(+8.6%)

43,890(+0.7%)

41,302(-5.9%)

2017

2018

2019

2020

2021 3Q

Share

20.6%

20.3%

19.9%

19.4%

19.3%

Gross
profitmargin

35.9%

35.7%

35.8%

36.4%

36.3%

▮ PB sales ratio by category of goods(Million yen)

▮ Sales of PB goods by segment and by category of goods
Entire company

Factory route

Constituent ratio 19.3%
Gross profit margin 36.3%
Net sales
Total
Cutting tools

Constituent ratio 19.6%
Gross profit margin36.3%

YoY change

Net sales

YoY change

32,500+3.9%

23,771+2.4%* Excluding theoverseas routee-business route

Home center route

Constituent ratio 23.8%
Gross profit margin36.8%

Constituent ratio 5.4%
Gross profit margin 31.4%

Net sales

YoY change
7,796

Net salesFirst 3Qs of FY ending Dec. 2021
Cutting tools
1.6%

YoY change

+9.9%

716

-10.2%

519

+2.0%

372

+2.0%

87

-1.2%

51

+2.8%

Production processing goods

1,160

+7.6%

844

+5.9%

282

+13.5%

13-14.0%

Construction goods

2,760

+6.7%

1,978

+4.0%

720

+14.3%

45+2.0%Work supply

5,802

+5.7%

4,581

+4.6%

1,120

+10.5%

59-0.6%

Hand tool

3,358

+5.3%

2,356

+3.6%

851

+10.2%

91-11.5%

Environmental safety
equipment

5,525-11.6%

4,203-10.9%

1,217

-8.9%

89

-48.3%

Distribution and storage
equipment

7,715+10.5%

5,445

+9.1%

1,907

+16.9%

331+1.7%

Research management
equipment

2,523+10.8%

1,869

+7.2%

637

+23.2%

2-20.6%

Office and housing facility
equipment

3,131

+7.3%

2,119

+4.3%

970

+13.9%

28+59.3%

2-28.7%

0

+1.0%

-

2

-28.7%

Other©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved-

The Company's own brand, TRUSCO, is born outof an aspiration to provide professional quality toprofessional technologies. Introducing ideas
where possible, the brand covers the widest
variety of items among brands of consumables forfactories. Approximately 10,000 new items havebeen developed annually.

Production
processing goods
3.6%

Office and housing
facility equipment
9.6%
Research management
equipment
7.8%

Construction
goods
8.5%

Distribution and storage
equipment
23.7%

Work supply
17.9%

Hand tool
10.3%
Environmental
safety equipment
17.0%

TRUSCO NAKAYAMA Investor Relations18

C-(1) Number of suppliers, sales of newly listed goods, number of items ininventory, hit rate, number of sales accounts and number of companies▮ [Non-consolidated] Changes in the number of suppliers andsales of goods newly featured in the TRUSCO Orange Book
(Companies, 100 million yen)

3,000

2,500

2,000

2,222

96
82

1,500

2,339

1,688

Approx.1,854
5%102
Approx.2,040
5%

89.5

2,048

89.9

91.0

90.5

500,000

2,132

Approx.
Approx. 84
83
4%
5%
2,120

(*2)

600,000

2,652

2,203

2,142

1,950

1,769

2,537

2,477

▮ [Non-consolidated] Change in the number of
inventory items and the inventory hit rate

Approx.
4% (*1)455,900
374,600

400,000

91.2%

488,893
items

392,100

336,800
300,000

200,000

1,000

Number of inventory items
100,000

Sales of newly listed goods (unit: 100 million yen)

Inventory hit rate (%)
500

Sales of previously listed goods (unit: 100 million yen)0

Number of suppliers

2017

0
2016

2017

2018

2019

30, 000

25,46628, 000

26, 000

24, 000(*3)

21,243

22,37528,977
10, 000

26,327 27,140

26,168 26,881

27,5509,0 0023,6838,0 0022, 000

20, 000

7,0 0018, 000

16, 000

5,367 5,415

5,447

5,415

5,348

5,333

5,323

5,592

2019

2020

End ofSep. 2021

2020▮ [Consolidated] Change in number of sales accounts
and companies
Number of sales accounts
Number of companies

2018

5,515

5,512

6,0 00*1. Products newly listed in our product catalogue, TRUSCO
Orange Book, for the relevant year account for
approximately 4% of total sales.
*2. Inventory hit rate: Number of rows used for products
shipped from inventory divided by the total number ofrows used for orders.
*3. The number of accounts is experiencing an upward trend
amid growth of transactions with corporate customers
with multiple stores.

14, 000

5,0 0012, 000

10, 000

4,0 002013

FYE March 31, FYE December
2014
31, 2014

2015

2016

2017

2018

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2019
Consolidated

2020
Consolidated

2021 3Q* The numbers of companies and accounts including overseas
subsidiaries are presented from 2019 onwards.
TRUSCO NAKAYAMA Investor Relations19

D-(1) [Consolidated] Major changes in selling, general and administrative
expenses (SGA) for the first three quarters of the FY ending
December 2021
Freight
andpacking
expenses+274
Depreciation+420(+5.8%)

Million yen( ) YoY change

Other
increases+26

Commissionfee-264(-14.0%)(+8.9%)

Advertisingexpenses
Leasehold-202
and office(-33.5%)rents-197(-44.1%)

SGA for2020 first
3Qs

Major factors of changes inadvertising expenses

Supplies
expenses-116(-24.9%)- Expenses related to the shareholder benefit
program (-171 million yen)

SGA for2021 first
3Qs

Major factors of changes in commission fee

26,353- Expenses for initial actions related to the core system revamp in
the previous year (-289 million yen)

Main factors of changes in depreciation- Buildings and distribution equipment at distribution centers
Reconstructed building, material handling equipment and others at Planet
South Kanto (+433 million yen)
Extended building, material handling equipment and others at Planet Tohoku(+212 million yen)

Main factors in change inleasehold and office rents- Cancellation regarding an external
warehouse for a distribution center(-178 million yen)

26,294(-0.2%)

SGA down 58 million yen
For details of the factors in changes, please see p. 23.
©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations20

D-(2) [Consolidated] Details of selling, general and administrative expenses(SGA) for the first three quarters of the FY ending December 2021
▮ Details of selling, general and administrative expenses (SGA) (Unit: million yen, %)First 3Qs of FY ended Dec.
2020
No.

AmountShare in net
sales

First 3Qs of FY ending Dec.
2021
YoY Change
YoY change(amount)
Share in net
Amountsales

1 Salary and bonus

8,159

5.1

8,136

4.8

-22

-0.3

2 Depreciation

4,723

3.0

5,144

3.0

+420

+8.9

3 Freight and packing expenses

4,715

3.0

4,990

3.0

+274

+5.8

4 Welfare expenses

1,592

1.0

1,652

1.0

+59

+3.8

5 Commission fee

1,884

1.2

1,620

1.0

-264

-14.0

6 Taxes and dues

1,065

0.7

1,005

0.6

-59

-5.6

7 Provision for bonuses

962

0.6

942

0.6

-19

-2.0

8 Advertising expenses

604

0.4

402

0.2

-202

-33.5

9 Supplies expenses

468

0.3

352

0.2

-116

-24.9

Traveling expenses and
10transportation expenses

365

0.2

349

0.2

-16

-4.4

11 Remuneration paid to directors

324

0.2

316

0.2

-8

-2.5

12 Communication expenses

291

0.2

298

0.2

+7

+2.5

13 Leasehold and office rents

448

0.3

250

0.1

-197

-44.1

14 Utilities expenses

276

0.2

232

0.1

-44

-16.1

15 Vehicle expenses

177

0.1

202

0.1

+25

+14.3

16 Entertainment expenses

16

0.0

16

0.0

+0

+4.3

17 Promotion expenses

61

0.0

-32

-0.0

-93

ー

18 Other

216

0.1

414

0.2

+197

+91.0

26,353

16.6

26,294

15.6

-58

-0.2

Total

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved[Non-consolidated] Key Items( ) YoY change- Buildings and distribution equipment at
distribution centers
Reconstructed building, material handlingequipment and others at Planet South Kanto(+433 million yen)
Extended building, material handlingequipment and others at Planet Tohoku (+212
million yen)
- Impact of growth in shipping volume (+307
million yen)
Increase in direct shipments to users (+165
million yen)
Note: Fees for direct shipment to users arepaid by the requesting client.
=> 4,580,000 shipments (+560,000)[Reference]
Number of chartered vehicles: 186 (-2 fromthe end of previous fiscal year)
119 vehicles (+5 from the end of previous
fiscal year) for delivery by the Company's
employees- Expenses for initial actions related to the coresystem revamp in the previous year (-289
million yen)
- Expenses related to the shareholder benefit
program (-171 million yen)
- Expenses for issuance of the 60th
anniversary publication (-28 million yen)
- Cancellation regarding an external warehousefor a distribution center(-178 million yen)
- Expenses for repairing material handlingequipment at Planet Tohoku following anearthquake(+121 million yen)

TRUSCO NAKAYAMA Investor Relations21

D-(4) [Consolidated] Capital expenditures for the first three quarters of
the FY ending December 2021
▮ Major past and future capital expenditures

Investment plan for the 59th business year: 10,900 million yen
Details of major capital expenditures in 2021

Land and buildings

Logistics equipment

IT systems

ActualExpected
expenditures for expenditures for
1Q to 3Q
4Q

(in million yen)

Distribution centers

Planet Aichi construction plan, HC East Japan Distribution Center relocation plan and others

1,484

1,056

OthersPurchases for the Osaka Head Office, purchases for the company dormitory, and others

1,595

4,196

Planet Saitama

Introduction of picking robots in I-Pack® and AutoStore, and others

OthersIntroduction of new handheld terminals, addition of various equipment, and others

375

351

310

1,622

3,765

7,225

Revamp of the Sterra product database and network- and security-related repairs
AI development, website revamp, and others

Subtotal
Annual capital expenditures

10,990▮ Change in capital expenditures
197
171
144

Digitalization

39
39

17
19

35

(Unit: 100 million yen)
Facilities

Land and buildings

109

35

8
19

80
107

Capital expenditures

123
96

59

82

5
15
2017

2018

Non-consolidated

2019

2020

2021 plan

Consolidated©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved- The investment amount may fluctuate because the scheduled amount of
capital expenditures includes expenses for projects at the planning stage.
- The figures for the 59th business year represent values on a cash-out basis.
For FYE December 31, 2021, depreciation of approx. 6,900 million yen (up400 million yen year on year) is planned.
TRUSCO NAKAYAMA Investor Relations22

E-(1) Plan for the current business year
◆ Budget formulation
The forecast is used as the entire company’s budget, which is the total of the “annual budget of each branch prepared by the branch manager throughout Japan.” Thebranch 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. The Company revised its forecast of profit attributable to owners of parent upwards on November 1, 2021 after
the recording of extraordinary income associated with its transfer of non-current assets.
Given that this extraordinary income is not directly related to business activities, the Company has not revised its forecast of dividend per share based on the dividend
policy announced in February 2021.
Fiscal year ended December 2020
(Consolidated)(Non-consolidated)

YoY
YoY
ActualActualchange YoY %change YoY %results
results
in valuein value(¥ million)(¥ million)

Net sales

213,404

Gross profit

45,909Gross profit
margin (%)

(%)

(%)

(Consolidated)Plan(¥ million)

Percent
ChangeYoYchangefrom initialchange YoY %from initialplan
in valueplan(¥ million)(¥ million)-7,27096.7 213,205-7,15196.8 227,520-1,12497.6 45,733-1,12397.6 48,310

-650

21.5%

+0.2pt-+0.2pt-21.2%-0.3ptSelling, generalandadministrative
expenses

34,891+1,654105.0 34,630+1,695 105.1 35,140-650

Operatingincome11,017-2,77979.9 11,102-2,81879.8 13,170-

Ordinary income

11,559-2,63881.4 11,635-2,66781.3 13,820

Net income

8,007-1,606

83.3

8,085

-1,629Net sales per day

-

-

-

892

Sales of PB
goods

-

-

-

Number ofbusiness days--

Net income per
share¥121.43

Dividend per
share¥30.50

21.5%

Fiscal year ending December
2021 (plan before revision)

Fiscal year ending December 2021 (plan after revision)(Consolidated)(Nonconsolidated)

Plan

YoY %

Plan

YoY %

Plan

YoY %

(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)--+14,115 106.6% 227,000

106.5 227,520

106.6 227,000

106.5-1.3% +2,400 105.2% 48,050

105.1 48,960

106.6 48,700

106.5

-

-

-

-

-0.3pt

-

21.2%

21.5%

21.5%

+248 100.7% 34,850

100.6 35,790

102.6 35,500

102.5

-

+2,152 119.5% 13,200

118.9 13,170

119.5 13,200

118.9

-

-

+2,260 119.6% 13,840

118.9 13,820

119.6 13,840

118.9

83.2 11,970+2,450+25.7% +3,962 149.5% 12,000

148.4

9,520

118.9

9,550

118.1

-45

95.1

-

-

-

-

-

945

106.0

-

-

945

106.0

41,302-2,588

94.1

-

-

-

-

-

44,000

106.5

-

-

44,000

106.5

-

239

+4

-

-

-

-

-

-

240

-

-

-

240

-¥24.35-¥122.62-¥24.70-¥181.52-+¥60.09--¥6.00----¥36.50-+¥6.00-+¥37.15
-

-1.8%

(%)

(Nonconsolidated)¥181.98 +¥59.36 ¥144.37--¥36.50--¥144.82 +¥22.20--

This management plan represents the estimation the Company made when this material was prepared. The Company does not guarantee the accuracy of information contained herein. Actual business performanceand results may differ from the forecast due to various factors.

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations23

E-(2) FY2021: Major capital expenditures and topics
Environmental conservation through direct
shipments from the wholesaler to users:
Halving delivery lead times, packing materials,
freight fees and environmental impact
As it is becoming common to procure items from mail order companies
on manufacturing shop floors, requests that items be directly shipped tousers are rapidly increasing.
In light of the expansion of our collaboration with mail order companies,
the industry-wide labor shortage and users' requests for shorter delivery
lead times, it is likely that direct shipments to users will continue toincrease, and so it is essential to strengthen the direct shipment system.

▮ I-Pack shipping capacity:
720 cs/h per line, equivalent to approx. 24 workers
I-Pack introduced to: Planet Tohoku, Saitama, Tokai and Osaka(to a total of five lines (two in Planet Saitama and one in each of theremainder))▮ Direct shipments from logistical centers in the wholecountry to users

2,068 thousand boxes directly shipped to users

Future specific actions▮ Increase the maximum shipping capacityof the I-Pack high-speed automatedpackaging and shipping line at Planet
Saitama
Expected expenditures for the fiscal year:
Approx. 270 million yen
Quantity
Facility

Present

Future(1) I-Pack lines

2

3 (+1)(2) GAS units for I-Pack[Sorting system]2

6 (+4)(3) I-Pack worksites

10

19 (+9)(4) Destination sorting robot-

1 (+1)

Capacity
Present

FutureInjection of
8,000 parcels
per day

Injection of 15,200
parcels per day-

300 sorting
sessions per hour

13,070 million yen in sales directly shipped to users

Land acquisition for distribution centers at several
locations(up 18.2% year on year)

1. Planet Aichi(up 24.4% year on year)

Planned for the current fiscal year
3.00 million
boxes

Boxes directly shipped tousers (unit: million boxes)

2.00

2.23

1.75
13.00

14.54

14.72

Kita-Nagoya-shi, Aichi Prefecture(Land readjustment project site in the West of Okimura in KitaNagoya)▮ Site area: 12,595 tsubo▮ Expenditures in 2021: Approx. 1,410 million yen▮ Total expenditure: Approx. 20,000 million yen (being planned)▮ Monthly land rent: Approx. 5.7 million yen

2. HC East Japan Distribution Center
Sales of direct
shipments to users(unit: billion yen)

2018

Planned for full year
17.0 billion yen▮Location:

2019

130.7 billion
yen

2020

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved▮Location: Fukujimashinden, Sanjo-shi, Niigata Prefecture▮ Site area: 7,986 tsubo▮ Expenditures in 2021: Approx. 380 million yen▮ Total expenditure: Approx. 5,000 million yen (being planned)

2021 first 3Qs
TRUSCO NAKAYAMA Investor Relations24

E-(3) TRUSCO's sustainability (1)▮Basic policy~TSV (TRUSCO Shared Value)~
The Company aspires to be a pro tool supplier continually serving Japanese manufacturing in every era. 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 TRUSCO Shared Value (TSV) was created by combining TRUSCO and Creating Shared Value (CSV).

▮ Material issues
On the basis of its basic TSV policy, the Company identified the material issues it faces for sustainability. The Company will address theseissues through its business with a view towards the establishment of a sustainable society.

(1) Total optimization of the supply chain
Become a platform operator supporting manufacturing and optimize thesupply chain to establish sustainable pro tool distribution that is bothhuman-friendly and environmentally friendly.

(2) Planning and development of products that
respond to diversifying needs
Develop and provide PB products with original value to suit
diversifying needs and trends among those on manufacturing shop
floors to help rationalize manufacturing operations and increase
productivity and competitiveness.

(3) Development of environments and personnel
to enable them to fully display their personalabilities
Provide an environment that ensures that personnel are highly
motivated and that enables them to display their abilities to thefullest degree to consequently ensure corporate growth©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved(4) Environmental actions through businessactivities
Work to reduce the environmental impact of the Company's businessactivities, PB products and also the users of the Company's products to
help the Japanese manufacturing industry with its environmental
activities(5) Contribution to stakeholders and local
communities
Cherish the relationships with stakeholders through support forpeople with disabilities and communication with local
communities and society through sponsorships and advertising.

(6) Governance based on a stance of choosing
the proper actions
Improve the fairness and transparency of management and implement
swift and appropriate decision-making to conduct business activities
that conform to laws and social norms.

TRUSCO NAKAYAMA Investor Relations25

E-(3) TRUSCO's sustainability (2)Environmental actions through business activities▮Repair workshop Naojiro▮ Distribution with no waste emissions

Generally, it is common that who you should ask to repair a product varies depending on the
category of the product. Naojiro is a one-stop gateway to repair services. Delivery drivers andsales personnel collect products to be repaired as needed. This means that clients are notrequired to pack items or pay freight fees. This service is based on fixed-cost distribution that
ensures both the reuse of pro tools and client efficiency. In January 2022, the Company willrelaunch its Naojiro section to popularize and enhance this service.

The Company puts ordered goods in foldable containers and fills
space with its independently developed shock-absorbing material
commercialized under its TRUSCO brand as Return Cushion
when shipping goods to clients in distance locations.
These containers and materials can be used repeatedly. The
Company use them to reduce waste.

▮ Sales of repair services (inmillion yen)
1,723

1,845

1,708

1,700
(plan)

1,549
1,171

2017

2018

2019

2020

2021
forecast▮ TRUSCO power generation installations (at 19 locations in Japan)
The installation of private power generation systems is in progress on the roofs and wallsof distribution center, branch office and head office buildings. The Company will continue
installing solar panels on newly constructed company buildings to increase its renewableenergy power capacity to 3,500 kW by 2025.

▮ Annual total power
generation:
2,551,776 kWh▮ Power self-sufficiency
rate: 18.9%▲ Solar panels on the roof of Planet Saitama©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved▲ TRUSCO Return Cushion for 20 liters (yellow) (TRC-20L-Y)▮ Environmental features of TRUSCO products
In product planning and development under its TRUSCO
brand, the Company determines unique environmental
standards such as energy efficiency, waste reduction andlong useful product lifespans. Its product development
considers the environment in all phases,
including product design, use and disposal.

▶TRUSCOShin Senju Kannon hand soap (TSK-11-A)
This environmentally-friendly hand soap
contains a natural scrub agent derived from
Siraitia grosvenorii monkfruit shells instead of
microplastic beads which lead to marine
pollution.
TRUSCO NAKAYAMA Investor Relations

26

Reference 3: [Consolidated] Quarterly business performance for the first three quartersof the FY ending December 2021 (non-cumulative)▮ First three quarters of FY ending December 2021 [non-cumulative](Unit: million yen, %)1st Quarter (+1 day)BudgetBudgetNet sales

Actualresults
BudgetGross profit

Selling, general andadministrative expenses(SGA)

Actualresults
BudgetActualresults

BudgetOperating income

Actualresults
BudgetOrdinary income

Quarterly profit
attributable to owners ofparentActualresults
BudgetActualresults

2nd Quarter (±0 day)Share
against net YoY change
sales

Budget3rd Quarter (±0 day)Share
against net YoY change
sales

BudgetShareagainst net
sales

4th Quarter (±0 day)YoY change

58,121

100.0

+1.1

55,949

100.0

+9.9

54,981

100.0

+9.2

58,246

100.0

+1.3

55,642

100.0

+9.3

54,819

100.0

+8.9

12,51621.5-0.3

12,474

22.3

+10.0

11,664

21.2

+10.1

12,54321.5-0.1

12,09921.7+6.7

11,111

20.3

+4.9

8,811

15.2

-4.4

8,899

15.9

+4.5

8,790

16.0

+2.0

8,752

15.0

-5.1

8,664

15.6

+1.8

8,877

16.2

+3.0

3,705

6.4

+11.0

3,575

6.4

+26.6

2,874

5.2

+45.4

3,790

6.5

+13.6

3,434

6.2

+21.6

2,234

4.1

+13.0

3,943

6.8

+16.5

3,807

6.8

+26.3

2,958

5.4

+43.7

3,995

6.9

+18.0

3,695

6.6

+22.6

2,322

4.2

+12.8

2,725

4.7

+17.4

2,615

4.7

+29.9

2,034

3.7

+47.3

2,712

4.7

+16.9

2,524

4.5

+25.4

2,242

4.1

+62.5

BudgetShareagainst net YoY change
sales

58,811

100.0

+7.6

12,555

21.3

+10.0

8,845

15.0

+3.6

3,710

6.3

+28.8

3,805

6.5

+22.8

4,489

7.6

+95.8

* The budget figures for the first, second and third quarters represent the budget after the revision announced on March 15, 2021 and thefigures for the fourth quarter are the budget after the revision announced on November 1, 2021.

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

27

Reference 4: [Consolidated] Quarterly business performance for the first three quartersof the FY ending December 2021 (cumulative)▮ First three quarters of FY ending December 2021 [cumulative](Unit: million yen, %)1st Quarter (+1 day)BudgetBudgetNet sales

Actualresults
BudgetGross profit

Selling, general andadministrative
expenses (SGA)

Actualresults
BudgetActualresults
BudgetOperating income

Actualresults
BudgetOrdinary income

Quarterly profit
attributable to ownersof parent

Actualresults
BudgetActualresults

2nd Quarter (±0 day)Share
against net YoY change
sales

Budget3rd Quarter (±0 day)Share
against net YoY change
sales

Budget

4th Quarter (±0 day)Share
against net YoY change
sales

58,121

100.0

+1.1

114,070

100.0

+5.2

169,051

100.0

+6.5

58,246

100.0

+1.3

113,888

100.0

+5.1

168,708

100.0

+6.3

12,51621.5-0.3

24,99021.9+4.6

36,65421.7+6.3

12,54321.5-0.1

24,64321.6+3.1

35,754

21.2

+3.7

8,811

15.2

-4.4

17,71015.5-0.1

26,500

15.7

+0.6

8,752

15.0

-5.1

17,41715.3-1.8

26,294

15.6

-0.2

3,705

6.4

+11.0

7,280

6.4

+18.2

10,154

6.0

+24.8

3,790

6.5

+13.6

7,225

6.3

+17.3

9,459

5.6

+16.2

3,943

6.8

+16.5

7,750

6.8

+21.1

10,708

6.3

+26.6

3,995

6.9

+18.0

7,691

6.8

+20.2

10,014

5.9

+18.4

2,725

4.7

+17.4

5,340

4.7

+23.2

7,374

4.4

+29.0

2,712

4.7

+16.9

5,237

4.6

+20.8

7,480

4.4

+30.9

BudgetShareagainst net YoY change
sales

227,520

100.0

+6.6

48,31021.2+5.2

35,14015.4+0.7

13,1705.8+19.5

13,8206.1+19.6

11,9705.3+49.5* The budget figures for the first, second and third quarters represent the budget after the revision announced on March 15, 2021 andthe figures for the fourth quarter are the budget after the revision announced on November 1, 2021.

©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations28

Reference 5: Company data
▮Number of employees [Consolidated]
as of the end of September 2021

▮ Average age and annual income.

Females

Males

Total

YoY Change

Executives

1

10

11

-1

Executive officers

0

2

2

±0

Career

159

427

586

-39

Area

281

302

583

+7

Support

23

2

25

-3

Specialist

15

13

28

-1

Logistics

79

265

344

-7

Contract employees

1

32

33

-4

Overseas subsidiaries

18

24

42

±0

Seconded to health insurance
association

2

0

0

±0

Seconded to Nakayama Visually
Impaired Welfare Foundation

0

0

0

±0

Full-time employees subtotal

578

1,067

1,645

-47

Part-time employees

915

322

1,237

+128

Total

1,494

1,399

2,893

+80

Share of female employees: 35.1%, Number of female sales staff members: 60, Females in career-track
positions account for 27.7% of all female employees.
* The number of part-time employees represents the actual number of such workers under employment.

Average age (years)
EntireFemalesMales
company
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

2016

30.6

43.5

39.3

757

651

519

674

* 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,
which resulted in a decline in average annual income in the same year.
* 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 average annual income figures are on a non-consolidated basis.

▮ Numbers of incoming and outgoing employees * Excluding part-time employees.

No. ofemployees

2016
2017
2018
[Non-consolidated] [Non-consolidated] [Non-consolidated]
Females Males Females Males Females Males
512
959
510
1004
557
1,051
1,471

No. ofincoming
employees

70

No. ofoutgoing
employees

20

Turnover
ratio

3.8

1,514
33

59

103

1,608
67

18

38
3.4

2.5

52

26

3.5

2.3

57

42

46
1.8

Amountirrecoverable

0

2018

2.4

6.7

4

0

24

33

5.9

22

35

36
71

3.0
4.0

Head offices2

Branches

61

Distribution centers

17

Overseas bases

3

Stock centers

10

Total

93

46

70
3.9

4.9

46

37

86

2.8

2019

41

▮Number of bases [Consolidated]
as of the end of September 2021

1,645

87
44

▮ Amount irrecoverable due to bankruptcy
2017

1,674

109

20

36
1.8

72
135

18

2020
End of Sep. 2021
[Consolidated][Consolidated]
Females Males Females Males
589
1085
578
1067

1,656

63

126
18

2019
[Consolidated]
Females Males
585
1,071

Average annual income (million yen)
EntireCareer Area Logistics
company

5.7

3.3
4.1

▮ Changes in inventory disposal and inventories

2020
0©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

20162021 3Q
275

2017

2018

2019

2020

Inventory disposal (million yen)

32

41

39

42

50

Inventories (100 million yen)

290

318

370

427

406

Disposal rate (%)

0.11

0.13

0.11

0.10

0.12

TRUSCO NAKAYAMA Investor Relations

29