The 59th Business YearBusiness Performance Data Analysis
Fiscal Year Ending December 2021
Second Quarter
June 15, 2021
Joint Press Conference regarding University Collaboration and Joint Capital Business
TRUSCO NAKAYAMA CORPORATION
Announced August 6, 2021
Atsushi Shimozu
General Manager of the Corporate Planning Div.
Mayumi Takada
Manager of the Corporate Planning & IR Section
Minori Hirano
Corporate Planning & IR Section
Mika Takahashi
Corporate Planning & IR Section

From left: Nagoya University President Seiichi
Matsuo, Cinnamon, Inc. Representative Director
Miku Hirano, Trusco Nakayama Corporation
President Tetsuya Nakayama and Ground Inc.
President Hiratomo Miyata.
©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

Attended by representatives from about 20
media outlets, our announcement was featured
in the Nikkei and other media.

Address: 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

TRUSCO NAKAYAMA Investor Relations

Upward Revision to Business Performance Forecast (announced on March 15, 2021)
The Company announced the budget for the 59th business year on February 12 together with its financial
results. Although at the time of formulating the budget the situation regarding the COVID-19 crisis remained
unclear and the budget was rather conservative, as there are signs of recovery in the market, we revised thebudget upward on March 15, 2021.
(Consolidated Forecast: Revised from ¥220.5 billion to ¥227.5 billion)▮ Revision to Budget for 59th Business Year (Ending December 2021)
Previous forecast(Feb. 12, 2021)

Forecast after revision(Mar. 15, 2021)

Change fromprevious forecast

YoY change

Net sales¥220,520 million¥227,520 million

+3.2%

+6.6%

Operating income¥12,470 million¥13,170 million+5.6%+19.5%

Ordinary income¥12,880 million¥13,820 million+7.3%+19.6%

Profit attributableto owners of parent¥8,870 million¥9,520 million+7.3%+18.9%Net income per share¥134.51¥144.37+¥9.86+¥22.94©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCO NAKAYAMA Investor Relations

2

Company overview

As of the end of June 2021

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

Total:
93
Domestic: 90 (2 head offices, 61 sales branches, 27 distribution centers)
Overseas: 3 (Local subsidiaries in 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

2,885 (11 executives, 1,670 full time employees, 1,204 part-time
employees) [Consolidated basis]

Credit rating

A (Rating and Investment Information, Inc.)

Lines of business

Wholesaling of industrial equipment, such as machine tools, distribution
equipment and environmental safety equipment (and consumables used infactories), and the planning and development of products under the company’s
own brand, TRUSCO.

Net sales

Business flow ( ) YoY change
Suppliers

Manufacturers

Trusco Nakayama (Wholesaler)

Ordinary income

Net sales

Depreciation

Ordinary
incomeDepreciation

2017

2018

2019

[Non-consolidated]

2020

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

Main Sales Agents (5,500 companies) (See p.19)

Target Markets (Main Users)

Factory route

Machine tool, welding material, pipe material,conductors, electric materials, packaging materials
dealers

Manufacturers, construction companies

e-business route

Mainly online stores

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

2,821(Up 224companies)
Of these, 247 areoverseas
manufacturers(Up 39 companies)

Change in Net Sales, Ordinary Income andDepreciation(Unit: 100 million yen)©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCO NAKAYAMA Investor Relations3

A-(1) [Consolidated] Business performance for the second quarter of the FY ending December 2021
• Consolidated net sales: Up 5.1% YoY, Down 0.2% from budget The number of business days = 120 was larger by one than in the same period a year earlier.
* The number of business days is the non-consolidated number.
• Consolidated gross profit margin: 21.6%, down 0.4 percentage points
The increase in demand that we experienced last year for face masks and other high gross margin products due to COVID-19 crisis subsided.
• SGA: Down 1.8% year on year due to the reduction in initial expenses required for the core system renewal posted the previous year and a decrease in advertisingexpenses due to the discontinuation of the shareholder benefit program. (Please see pp. 22-23 for details regarding SGA.).

2Q of FY ended
Dec. 2020
Actual results

2Q of FY ending
Dec. 2021

Share

Actual results

Share YoY change

BudgetShare

Change from budget

Change frombudget (%)

Net sales¥108,413 million-¥113,888 million-+ 5.1%¥114,070 million--¥181 million- 0.2%

Gross profit¥23,894 million

22.0%¥24,643 million

21.6%+ 3.1%¥24,990 million

21.9%-¥346 million- 1.4%

Selling, general andadministrative
expenses (SGA)¥17,733 million

16.4%¥17,417 million

15.3%- 1.8%¥17,710 million

15.5%-¥292 million- 1.7%(Depreciation
included in SGA)

¥2,962 million

2.7%¥3,416 million

3.0%+ 15.3%¥3,442 million

3.0%-¥25 million- 0.8%

Operating income¥6,161 million

5.7%¥7,225 million

6.3%+ 17.3%¥7,280 million

6.4%-¥54 million- 0.7%

Ordinary income¥6,400 million

5.9%¥7,691 million

6.8%+ 20.2%¥7,750 million

6.8%-¥58 million- 0.8%

Profit attributable toowners of parent¥4,333 million

4.0%¥5,237 million

4.6%+ 20.8%¥5,340 million

4.7%-¥102 million- 1.9%Net income pershare¥65.72－¥79.42－+ 13.7%¥80.98－-￥1.56－

Dividend income pershare¥16.50－¥20.00－+ 3.5%¥20.50

－

-￥0.5

－

©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCO NAKAYAMA Investor Relations

4

A-(2) [Non-consolidated] Business performance for the second quarter of the FY ending December 2021

2Q of FY ended Dec. 2020

Actual results

Share

2Q of FY ending Dec. 2021

Actual results

Share

YoY
changeBudgetShare

Change frombudgetChangefrombudget(%)

Net sales¥108,367 million－¥113,694 million

－

+4.9

¥113,829 million－-¥135 million-0.1

Gross profit¥23,819 million

22.0%¥24,519 million

21.6%

+2.9

¥24,876 million

21.9%-¥357 million-1.4

Selling, general andadministrative
expenses (SGA)¥17,591 million

16.2%¥17,278 million

15.2%

-1.8

¥17,568 million

15.4%-¥289 million-1.6(Depreciation
included in SGA)

¥2,926 million

2.7%¥3,381 million

3.0%

+15.6

¥3,442 million

3.0%-¥60 million-1.8

Operating income¥6,228 million

5.7%¥7,240 million

6.4%

+16.3

¥7,308 million

6.4%-¥67 million-0.9

Ordinary income¥6,454 million

6.0%¥7,711 million

6.8%

+19.5

¥7,771 million

6.8%-¥60 million-0.8

Net income¥4,382 million

4.0%¥5,258 million

4.6%

+20.0

¥5,362 million

4.7%-¥103 million-1.9

Sales of PB goods¥21,561 million

19.9%¥22,080 million

19.4%

+2.4

¥22,393 million

19.7%-¥313 million-1.4+￥13.29¥81.31

Net income pershare¥66.46©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

－¥79.75－－¥-1.56－

TRUSCO NAKAYAMA Investor Relations5

A-(3) Company wide monthly sales and sales per day in the second quarter of the FY ending December 2021
▮ [Consolidated] Total* Figures for Jan. to Jun. represent actual values while those for Jul. andlater months are budget values.
Sales for the fiscal year under review (million yen)( ) Sales in the same month previous year (million yen)

▮ [Non-consolidated] Change in average daily
sales (all business offices)* Figures for Jan. to Jun. represent actual values while those forJul. and later months are budget values.
Orders are constantly placed for consumables used in factories.
We carry out a year-on-year comparison of sales per day.
Our sales increase during the peak periods in March whenmany companies close their accounts.

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

Year on yearchange (%)
Year on yearchange (%)

NumberJan.
ofbusiness
days

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

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.

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

TRUSCO NAKAYAMA Investor Relations6

B-(1) [Consolidated] Net sales, gross profit margin and ordinary income by sales route▮ Net sales by sales route2Q of FY ended Dec. 2020
Gross profit
marginNet sales

Sales route

Actual results

Factory route¥80,166 million 74.0%

e-business
routeHome center
route

Overseas
route

Total

Share Actual results

2Q of FY ending Dec. 2021
Ordinary
incomeGross profit
marginNet sales

Share

YoY change

YoYchangeBudgetChange frombudgetChangeActualfromresultsbudget (%)

Ordinary income

YoY
YoY
Actual resultschangechangeActual results

Actual results

21.6%¥4,562 million¥81,853 million 71.9% +¥1,686 million+2.1%¥82,857 million -¥1,004 million

-1.2%

21.2%

-0.4pt ¥5,242 million+14.9%¥19,424 million 17.9%

25.5%¥1,665 million¥22,233 million 19.5% +¥2,808 million+14.5%¥21,612 million+¥620 million

+2.9%

24.2%

-1.3pt ¥1,854 million+11.3%¥8,167 million 7.5%

17.9%

¥80 million¥8,978 million 7.9%+¥810 million+9.9%¥8,785 million+¥192 million

+2.2%

17.9%

±0.0pt¥246 million +206.3%¥653 million 0.6%

30.2%-¥132 million¥823 million 0.7%+¥169 million+25.9%¥813 million+¥9 million

+1.2%

32.6%

+2.4pt-¥12 million-¥108,413 million 100%22.0%

¥6,400 million ¥113,888 million 100% +¥5,475 million+5.1% ¥114,070 million-¥181 million

-0.2%

21.6%

-0.4pt ¥7,691 million+20.2%▮ Factory Route: Up 2.1% year on year
Factory operations and investment in plant and equipment showed a tendency to recover and business performance was steady due to the increase in work-related products
and hand tools required for factory operation. (See p.10)▮ e-business Route: Up 14.5% year on year
Sales to mail order companies surged 14.5% year on year and those to companies participating in Orange Commerce increased 14.2%. We adopting a flexible response tomeet the packaging requirements of customers and expanded sales to mail order companies by strengthening our unique logistics services and increasing the number of items
that we handle. (See p.11 and 12)▮ Home center Route: Up 9.9% year on year
We continued to provide ideas for shop displays mainly to home centers and pro-tool shops. Our in-store pick-up service that takes advantage of our range of 470,000 items
and aggressive marketing of our private brand products secured new accounts and contributed to the increase in sales and good overall business performance. (See p.13)▮ Overseas Route: Up 25.9% year on year
In the midst of restrictions on social activities due to the COVID-19 crisis, our top priority is to expand business with existing clients by solving problems and we believe thatstrengthen our sales force is an urgent task. (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 e-business route▮ Change in monthly sales earned via factory route* Figures for Jan. to Jun. represent actual values while those for Jul. andlater months are budget values.

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

* Figures for Jan. to Jun. represent actual values while
those for Jul. and later months are budget values.

3,999

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

Year-on-yearchange (%)
Jan.

Number ofbusiness
days

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

▮ Change in monthly sales earned via home centers* Figures for Jan. to Jun. represent actual values while
those for Jul. and later months are budget values.

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

Year-on-yearchange (%)
Year-on-yearchange (%)

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Number ofbusinessdays©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

Oct.

Nov.

Dec.
Number ofbusiness Jan.
days

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

TRUSCO NAKAYAMA Investor Relations8

B-(3) [Consolidated] Factory route: Business performance by region, industry and sales route▮ Factory route: Sales constituent ratio
by Industry
2Q of FY ending Dec. 2021

▮ Factory route: Sales by region▮ Factory route sales by industry
2Q of FY ended Dec. 2020

2Q of FY ending Dec. 2021

Gross profit
marginNet sales

Net sales

Gross profit margin

Sales route
Share

YoY change

Changefrom budget

Actualresults

YoYchange￥41,322 million

50.5%

+2.5%

-0.2%

21.1%

-0.3pt21.9%￥11,519 million

14.1%

-1.8%

-4.8%

21.7%

-0.2pt

16.3%

21.3%

￥13,655 million

16.7%

+4.6%

+0.4%

20.8%

-0.5pt￥15,058 million

18.8%

22.1%

￥15,354 million

18.7%

+2.0%

-2.5%

21.7%

-0.4pt￥80,166 million

100.0%

21.6%￥81,853 million

100%

+2.1%

-1.2%

21.2%

-0.4ptActual results

Share

Actual results

Machine tool dealers￥40,312 million

50.3%

21.4%

Dealers in welding materials￥11,736 million

14.6%￥13,059 million

Other manufacturing related(Incl. physical and chemical material, conductors, packaging
material dealers)
Construction related(Hardware retailers, dealers in piping materials/electrical materials,
civil engineering and building machinery lease operators, etc.)
Total net sales via factory route©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

Actual results

TRUSCO NAKAYAMA Investor Relations9

B-(4) [Consolidated] Sales via the e-business route▮ Sales via the e business route (by sales route)
2Q of FY ended Dec. 2020
Gross profit
marginNet sales▮ Selective release of pro-tools

2Q of FY ending Dec. 2021

Net sales

Gross profit
marginSales route
Actual results

Share Actual results Actual results

Share

YoY
ActualYoYchange results change

Mail order companies¥15,091 million 13.9%

24.8%¥17,284 million 15.2% +14.5% 23.2%-1.2ptCompanies participating in Orange
Commerce (Trusco's electronic
central purchasing system)¥4,332 million

4.0%

28.0%

¥4,949 million 4.3%

+14.2% 27.6%-0.4ptTotal net sales via e-business
route¥19,424 million 17.9%

25.5%¥22,233 million 19.5% +14.5% 24.2%-1.3pt( ) YoY change
Full year budget¥34.5 billion(+15.8%)181(+32.6%)234(+29.1%)

We carefully started to release products from among
those that are not sold to the public by our existing
suppliers.

▮ Sales to mail order companies: Sales ratio by industry
2Q of FY ending Dec. 2021

▮ Sales to mail order companies (billion yen)264(+12.7%)Up to now, our priority has been pro-tools, because
they are the main thrust for machine tool wholesalers.
Our business with online shops has continued toincrease in recent years, and in order to increase
convenience for their users, who are general
consumers, we decided that it is necessary to make agreater range of products available to them, rather thanlimiting the fields which they can choose from, andselectively released pro tools to consumers.

298(+13.0%)172(+14.5%)Dealers of physical chemical Dealers in piping
materials 2%
and medical materials 2%
Hardwareretailers 2%
Machine tool
dealers 4%
Other mail ordercompanies 5%
Retail of home electricalappliances 8%
Yodobashi Camera,
Bic Camera, etc.
Stationery mailordercompanies…

Others 3%

MRO mail ordercompanies
44%
MonotaRO,
Misumi, etc.

Askul , Otsuka
Corporation, etc.

2017

2018

2019

©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

2020

2021 2Q

General mail ordercompanies
17%
Amazon, etc.
TRUSCO NAKAYAMA Investor Relations10

B-(5) [Consolidated] Number of companies participating in Orange Commerce (Trusco’s electronic
central purchasing system)▮ Change in the number of companies participating in Orange Commerce(Trusco’s electronic central purchasing system)( ) YoY change

MRO Stocker

Factories

Sales to companies participating in Orange Commerce (billion yen)
No. of companies participating in Orange Commerce
No. of factories participating in Orange Commerce

Companies

Full year budget¥9.1 billion(+7.3%)

Under the banner of our corporate message, “Do Your Best!
Japanese Monozukuri,” we are dedicated to maintaining a stablesupply of MRO goods for production sites in the manufacturing andconstruction industries. MRO Stocker was a great idea of our
President Tetsuya Nakayama. place MRO inventory on the premisesof users and invoice them only for the items that they use, just like
Toyama’s medicine merchants did. This is how we achieve theultimate “zero delivery time.”

Introducing MRO Stocker
Monitoring inventory status remotely

2017

2018

2019

2020

2021 2Q

Suppliers[Manufacturers]

2,652©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

companies

Stock centers:

26

DeliveryInventory value:

2,440This purchasing system, mainly adopted by large lot users (manufacturers),
is designed to reduce their material and equipment procurement costs andincrease their business operational efficiency through the Internet based
management of material and equipment purchases.
Receipt of order data

TruscoNakayama

OrangeCommerce

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

Dealers
Deliveryof goods

Foreign:

Users

Delivery(Restocking)[General users]
Use in smartphone

Designated
Clients¥41.5 billion

Domestic:▮ Trusco’s electronic central purchasing system:

Saves trouble

Distribution Centers

Payment
Core system[Administrators]
Confirm detailed
statement in PC

Payment
based on usage

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

MRO Stocker can be arranged by our clients, who then set it up for
their customers (user), or users order through our dedicated website,through which a retailer who will then arrange an MRO Stocker for
the user. Either way, we do not sell directly to users. MRO Stocker isalways introduced to users through our clients. It takes about one tothree months to set it up after receiving a request.

Customers
Deliveryof goods

Conducting business among customers, distributors and Trusco
Nakayama by connecting a customer’s purchasing system with Trusco’s
central purchasing system©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

Accelerated introduction of MRO Stocker (“Use first pay later” tools)

Introduced to 88 companies as of the end of June 2021
Target amount by 2023: 550

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 has actively proposed to general hardware mass discounters that they allot
part of their floor spaces to pro tool shops.
In the future we will further deepen our relationship with such retailers and help to improve services for their customers using our collective strength.

▮ Ranking of sales to general hardware mass discounters

Name of client

Ranking

1

DCM Hodaka (Pro tool Shop)2

Unit: million yen, %2Q of FY ended 2Q of FY ending
YoY changeDec. 2020
Dec. 2021
1,032

1,240

+ 20.2Kohnan Shoji

810

1,088

+ 34.3

3

Nufco

860

1,021

+ 18.7

4

DCM Kahma

687

773

+ 12.5

5Royal Home Center

666

682

+ 2.4

6

Cainz

656

667

+ 1.7

7

DCM Homac

588

636

+ 8.1

8

Shimachu

488

413- 15.39

Komeri328

398+ 21.3

10

Home Center Valor

254

341

+ 34.0Combined sales to top 10 companies

6,373

7,264

+ 14.0Combined sales via home center route

8,167

8,978

+ 9.9

Percentage share of sales to top 10
companies

78.0

80.9

Brisk sales were achieved after an increasein product items procured from the Company.
General hardware mass discounters combines
their online stores with physical stores to improve
services for visiting customers. They use theCompany's stock for convenience. Sales to protool shops also increased.

■Sales to DCM Holdings©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

Total: ¥3,222 million (up 8.9% year on year)
DCM Hodaka , DCM Kahma , DCM Homac , DCM
Daiki, DCM Sanwa, DCM Kuroganeya , Keiyo, DCM
ONLINE■Sales to pro-tool shops
Total: ¥1,399 million (up 35.0% 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
2Q of FY ending Dec. 2021

Million yen

75560

TRUSCO NAKAYAMACORPORATION (THAILAND)
LIMITED
1 baht = 3.45 yen(3.49 yen a year earlier)PT.TRUSCO NAKAYAMAINDONESIA
1 rupiah = 0.0076 yen(0.0076 yen a year earlier)

Net sales
Actual results
Share against
net sales

Selling, general& administrative
expenses (SGA)

Gross profit
364–

OperatingincomeOrdinary income

Net income

84

70

14

14

14

23.3%

19.3%

3.9%

3.9%

3.9%

–

–

–

YoY change+15.0%+12.8%-7.2%

Actual results

140

33

66

24.2%

47.5%

–

–

–

+44.4%

+5.1%

–

–

–

Share against
net sales
YoY change–+16.9%

-32

-30

-30

[Overall conditions for the 59th Business Year]
While the lockdown has been extended in Thailand and social activities are restricted in Indonesia due to the COVID-19 crisis, it is
our top priority to expand business with our existing clients by solving problems and increase our sales force.

[Reference] Non-consolidated business performance in other overseas regions
2Q of FY ending Dec. 2021

Million yen
Net sales
Actual results

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

Share against
net sales
YoY change©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

Gross profit
318

–

86
27.3%

46.8%

57.6%

* The consolidated gross profit margin via overseas
routes is higher than the non-consolidated grossprofit margin because of consolidated accounting,such as offsetting of internal transactions.

TRUSCO NAKAYAMA Investor Relations13

B-(8) [Non-consolidated] Analysis of sales for second quarter of FY ending December 2021
(Million yen)

Major changes in net sales for 2Q of FY ending December 2021

Net Sales Up 5,327 million yen
Increase in demand due torecovery of capital
investment, etc.

Additional demand
due to recovery in the
manufacturing industry, etc.

+4,7292Q of FY ended
Dec. 2020+1,347

Decrease in others-547
Decrease in demandfor protective equipmentfrom special demand
related to COVID-19
in the previous year

-202

Details[Additional demand for consumables due to recovery in the manufacturing industry, etc.]+4,729 million yen

108,367• Hand tools (e.g. tools for manual work and electric power tools)• Work supply (e.g. adhesives and tapes): tapes)• Personal protective equipment (safety shoes, protective panels, etc.)

2Q of FY ending
Dec. 2021: +1,284 million yen: +1,127 million yen: + 742 million yen
and more…

113,694(+4.9%)[Additional demand for equipment due to recovery in investment in plant and equipment]+1,347 million yen• Storage products for logistics (dolly, steel shelves, etc.)• Construction products (generators, pumps, ladders, etc.): +781 million yen: +565 million yen
and more…

[Decrease in protective equipment sales due to high demand caused by COVID-19 theprevious year] -547 million yen• Multi purpose mask
©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

: -499 million yen

and more…
TRUSCO NAKAYAMA Investor Relations14

B-(9) [Non-consolidated] Sales by (large/medium) category for the second quarter of the FY ending December 2021
▮ Sales graph by large category and details of medium category▮ Repair service,
Naojiro Repair Workshops

Sales for the second quarter of the FY ended December 2020 (million yen)( ) YoY change (%)

Sales for the second quarter of the FY ending December 2021 (million yen)

▮ Sales of goods used for repair(million yen)
1,700
(Plan)

2017

2018

2019

2020

Trusco’ssales

Constituent
ratio

2021

Constituent ratio (%)
Category of goods(large category)
1. Cutting tools

3.1
2. Production processing
goods

7.7

3. Construction goods

11.5

Medium category

5. Hand tools

16.7

YoY change

Gross profit
margin

1,678

1.5

+9.5

12.2

Drilling and thread cutting
(2)
tools

1,876

1.7

+1.8

22.4

(3) Measurement equipment

4,623

4.1

+6.2

16.1

(4) Mechatronics

1,755

1.5

-0.1

15.6

(5) Tools for machine tools

1,073

0.9

+0.8

23.8

(6) Electronic machinery

1,273

1.1

+2.0

11.3

952

0.8

+0.1

11.5

(8) Pumps(9) Welding equipment(10) Painting and interior goods

1,621
1,050
1,151

1.4
0.9
1.0

-1.1
+3.6
-0.0

16.6
18.1
26.2

(11) Civil engineering and building goods

1,306

1.1

+9.5

12.3

(7) Hydraulic tools

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

18.3

Constituent
ratio(1) Cutting tools(12) Ladders and stepladders

4. Work supplies

Trusco’s
sales

1,493

1.3

-2.1

22.9

Category of goods(large category)Medium category

6. Environmental safety
equipment

17.4

7. Distribution and storage
equipment

11.1

8. Research management
equipment

4.5

YoY change

Gross profit
margin(25) Protective equipment

10,562

9.3

-4.9

24.2

(26) Safety goods

4,947

4.4

+9.5

25.9

(27) Environment improvement goods

961

0.8

+6.8

20.2

(28) Air conditioning goods
Disaster and crime prevention
(29)
goods
(30) Closets and exterior goods

1,799

1.6

+8.4

15.4

546

0.5

+20.4

19.5

970

0.9

+2.1

19.3

(31) Loading goods

3,587

3.2

+3.9

17.6

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

570
4,706
1,860

0.5
4.1
1.6

+4.5
+8.2
+6.8

15.9
22.9
30.8

(35) Steel shelves

1,873

1.6

+8.6

27.0

(36) Tool wagons

500

0.4

+4.3

28.8

1,867

1.6

+9.4

23.3

(37) Storage and management goods

629

0.6

+1.7

31.9

3,605

3.2

+8.3

27.4

(38) Work benches

813

0.7

+16.1

29.2

650

0.6

-2.6

15.0

941

0.8

+3.2

18.9

(16) Grinding and polishing goods

3,996

3.5

+17.2

32.4

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

2,163

1.9

+1.9

18.9

(17) Chemical products

9,548

8.4

-3.7

14.0

(41) Cleaning utensils

3,085

2.7

+7.0

22.0

(18) Factory miscellaneous goods(19) Packing and binding goods(20) Casters

2,253
2,735
1,653

2.0
2.4
1.5

+18.4
+10.7
+22.9

28.6
31.0
31.0

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

1,193
1,602
1,697

1.0
1.4
1.5

+16.1
+9.0
+4.0

19.2
26.6
22.3

(21) Electric power tools and accessories

5,476

4.8

+15.7

21.7

(45) OA business machinery

1,114

1.0

+32.6

25.5

(22) Pneumatic tools and accessories

3,575

3.1

+20.8

30.4

(46) Office furniture

2,001

1.8

-1.6

24.9

(23) Tools for manual work(24) Tool boxes

9,010
951

7.9
0.8

-0.8
-0.1

13.5
26.5 10. Others(47) Interior goods(48) Entire company
Total

145
234
113,694

0.1
0.2
100.0

+2.7
-31.1
+4.9

20.3
15.9
21.6

(Unit: million yen, %)©2021 TRUSCO
TRUSCO NAKAYAMA
NAKAYAMACORPORATIONCORPORATIONAllAllRights
rights reserved.
©2021
Reserved

9. Office and housing facility
equipment

9.5

0.2

TRUSCONAKAYAMA
NAKAYAMAInvestor
InvestorRelations
Relations
TRUSCO15

B-(9) [Non-consolidated] Sales by (small) category for the second quarter of the FY ending December 2021
▮ Demand changes by product for 2Q of FY ending December 2021★: Coronavirus outbreak related demand+ million yen
Million yen

Sales increase
0

Sales decrease- million yen©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCO NAKAYAMA Investor Relations

16

B-(10) [Non-consolidated] Sales by category of goods featured in the TRUSCO Orange Book for second quarter of
FY ending December 2021
▮ Sales by category of goods listed in the TRUSCO Orange Book and constituent ratios
Category
1. Cutting tools
2. Tools for machinetools
3. Measuring & testing
instruments
4. Mechatronics parts
5. Hardware & building
materials

Sales by product category are classified and displayed according to the categories listed in the TRUSCO Orange Book.
Net sales
YoY change
Category
Net sales
YoY change
Category
Net sales
YoY change¥3,793 million+4.8
9. Tools for manual work
¥9,113 million+10.0
17. Loading equipment¥4,642 million+7.1
10. Electric, hydraulic &18. Cleaning & janitorial¥1,274 million+2.7¥10,821 million+3.9¥6,368 million+6.7
pneumatic tools
supplies
19. Environment¥5,136 million+9.7
11. Protective equipment¥10,934 million-7.7¥4,598 million+18.2
improvement goods¥1,512 million+0.7
12. Safety goods¥2,662 million+11.1
20. Garden supplies¥1,001 million+11.3
21. Office and housing¥4,078 million+7.6
13. Packaging supplies¥7,294 million+9.1¥5,353 million+1.7
facility equipment

6. Pneumatic supplies¥2,274 million+4.1

7. Electronics¥2,124 million+11.2

8. Chemical products¥6,788 million+5.0

14. Construction & lighting
supplies
15. Loading goods
16. Logistics & storage
supplies¥10,464 million+1.9¥4,038 million+2.5¥6,671 million+7.0

22. Laboratory supplies¥2,779 million+8.4● 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

This 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 last year, its searchfeatures and user friendliness have improved.
Number of items featured: Approx. 2.51 million
Share of orders received via computer systems:
84.9%
Safety data sheets, drawings and contained
chemical substances investigation sheets aredownloadable. Available 24 hours per day©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCOAI Orange Rescue

This is an interactive goods search service based on
AI learning functions. The service can respond toqueries instantly. It supports natural language,
synonyms and technical terms in specific industries.
AI Kokomite kun (chatbot)
Responds in natural language.
Voice input supported
Available on smartphones

TRUSCO NAKAYAMA Investor Relations17

B-(11) [Non-consolidated] Sales of private brand (PB) goods for second quarter of FY ending December 2021
In the category of private brand goods, demand for environmental safety equipment related to the prevention of COVID-19 infections came to an
end. After the resumption of manufacturing business, sales of other products either increased or decreased slightly year on year.

▮ Change in sales of PB goods(Unit: million yen, %)Full year budget
44.0 billion yen(+0.7%)(+8.6%)(+8.3%)(-5.9%)▮ Private Brand (PB) goods
TRUSCO is our private brand that was
created to emphasize the professional
quality we offer to match the skills of professional users.
With the best range of products among all brands offactory supplies, we continue bringing out nearly 10,000
new items every year.

(+2.4%)

Share
Gross profit
margin©2021 TRUSCO NAKAYAMA CORPORATION All Rights Reserved▮ Change in sales by category of PB goods by segment* Excluding overseas route▮ PB sales ratio by category of goods(Unit: million yen)

Total
Cutting tools
Production
processing goods
Construction goods
Work supplies
Hand tools
Environmental
safety equipment
Distribution andstorage equipment
Research
management
equipment
Office and housing
facility equipment
Other

Entire Company
Constituent 19.4%
ratio
Gross profit 36.3%
marginNet sales
YoY change
22,080
+2.4%
355
+0.6%

Factory RouteConstituent 19.7%
ratio

e-business RouteConstituent 24.0%
ratioHome Center RouteConstituent 5.5%
ratio

Gross profit 36.4%
marginNet sales
YoY change
16,099
+0.9%
253
-0.3%

Gross profit 36.8%
marginNet sales
YoY change
5,346
+8.9%
61
+0.8%

Gross profit 31.2%
marginNet sales
YoY change
489
-9.8%
34
+5.5%

795

+6.9%

577

+4.1%

194

+17.4%

9

-3.3%

1,869
3,883
2,298

+4.8%
+4.6%
+5.1%

1,341
3,061
1,605

+2.0%
+3.3%
+2.3%

486
755
587

+13.0%+11.1%+12.6%

31
41
65

+4.0%
+3.2%
-2.0%

3,667

-13.6%

2,774-10.8%

820-16.0%

62-55.5%

5,274

+9.0%

3,712

+6.1%

1,315

+18.6%

225

+8.1%

1,747

+6.8%

1,294

+3.0%

441

+20.6%

1-16.4%

2,188

+6.3%

1,479

+2.3%

+16.0%

15+59.9%

1-28.3%

0

+1.0%

-

1

-28.3%©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

683-

2Q of FY ending Dec. 2021

TRUSCONAKAYAMA
NAKAYAMAInvestor
InvestorRelations
Relations
TRUSCO18

C-(1) Number of suppliers, sales of newly listed goods, number of items in inventory, hit rate, number ofsales accounts and number of companies
2. [Non-consolidated] Change in the number of inventory
items and the inventory hit rate

1. [Non-consolidated] Changes in the number of suppliers andsales of goods newly listed in the TRUSCO Orange Book
(Companies, 100 million yen)

2,203

2,142

1,950
1,769

Approx.
5%

Approx.
5%(Pieces, %)2,132Approx.
4%

Approx.
5%

Approx.
4%

3. [Consolidated] Change in number of sales accounts and companies
Number of sales accounts
Number of companies*

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 frominventory divided by the total number of rows used for orders.
3. The number of accounts is experiencing an upward trend amid growthof transactions with corporate customers with multiple stores.

* The numbers of companies and accounts including overseas
subsidiaries are presented from 2019 onwards.
2013

FYE March
31, 2014

FYE
December31, 2014

2015

2016

2017

2018

©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

2019
2020
2021
Consolidated Consolidated Consolidated

TRUSCO NAKAYAMA Investor Relations19

D-(1) [Consolidated] Major changes in selling, general and administrative expenses (SGA) for the second
quarter of the FY ending December 2021
Freight andpacking
expenses Commission

Depreciation

+454

+185

fees

(+5.9%)-337(-25.0%)

Unit: million yen, ( ) YoY change

Advertisingexpenses-227(+15.3%)(-46.0%)
SGA for2020 2Q

Rent
expenses onland andbuildings-135(-44.8%)

Salaries andbonuses

-84

Other

(-1.4%)-170

Major factors of changes in commission fee• Initial response after revamp of the coresystem: 289 million yen

17,733(-4.8%)

SGA for2021 2Q

Major factors of changes in advertising expenses• Expenses related to the shareholder benefit program:
170 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:+377 million yen
Extended building, material handling equipment and others at Planet Tohoku: +230 million yen

17,417(-1.8%)

SGA down 315 million yen
For details on factors relating to changes, please see p.23.
©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCO NAKAYAMA Investor Relations20

D-(2) [Consolidated] Selling, general and administrative expenses (SGA) for the second quarter of the
FY ending December 2021
▮ Details of selling, general and administrative expenses (SGA)
Apr. to Jun. 2020
No.

YoY change
YoY change(Amount)

Apr. to Jun. 2021

Share in net
sales

Amount

Unit: million yen, %Share in net
sales

Amount1

Salaries and bonuses

5,871

5.4

5,786

5.1

-84

-1.4

2

Depreciation

2,962

2.7

3,416

3.0

+454

+15.3

3

Freight and packing
expenses

3,168

2.9

3,354

2.9

+185

+5.9

4

Commission fees

289

0.3

278

0.2

-10

-3.7

5

Taxes and dues

1,065

1.0

1,076

0.9

+11

+1.1

6

Provision for bonuses

1,347

1.2

1,010

0.9

-337

-25.0

7

Welfare expenses

765

0.7

681

0.6

-83

-11.0

8

Advertising expenses

493

0.5

266

0.2

-227

-46.0

9

Supplies expenses

82

0.1

43

0.0

-39

-47.4

10

Remuneration paid to
directors

245

0.2

234

0.2

-11

-4.6

11

Communication expenses

268

0.2

223

0.2

-45

-16.9

12

Other

218

0.2

210

0.2

-8

-3.7

13

Leasehold and office rents

189

0.2

199

0.2

+9

+4.9

14

Vehicle expenses

156

0.1

181

0.2

+25

+16.4

15

Promotion expenses

302

0.3

167

0.1

-135

-44.8

16

Utilities expenses

173

0.2

136

0.1

-37

-21.7

17

Traveling expenses andtransportation expenses

119

0.1

137

0.1

+18

+15.5

18

Entertainment expenses

12

0.0

12

0.0

+0

+5.8

17,733

16.4

17,417

15.3

-315

-1.8

Total

©2021 TRUSCO
TRUSCO NAKAYAMA
NAKAYAMA CORPORATIONCORPORATIONAllAll Rights
rights reserved.
©2021
Reserved[Non-consolidated] Key Items( ) YoY change• Full time employees 1,625, part time employees
1,204• Overtime pay for employees (-104 million yen)
• Increase in wages and bonuses for part time
employees (+42 million yen)
• Buildings and distribution equipment at distribution
centers Reconstructed building, material handlingequipment and others at Planet South Kanto:+377 million yen
Extended building, material handling equipment
and others at Planet Tohoku: +230 million yen• Impact of growth in shipping volume (approx.
+185 million
Increase in direct shipments to users (+103
million yen)=> 3,050,000 shipments (+350,000)[Reference] Number of chartered vehicles: 159(-11 from the end of previous fiscal year)
117 vehicles (+7 from the end of previous fiscal
year) for delivery by the Company's employees• Revamp of the core system expenses
for initial response (289 million yen)

• Expenses related to the shareholder benefit
program: 170 million yen• Expenses for issuance of the 60th anniversary
publication ( 28 million yen)

• External warehouse for distribution centerterminated. (-118 million yen)

TRUSCO NAKAYAMA Investor Relations21

D-(3) [Consolidated] Financial statements for the second quarter of the FY ending December 2021
▮ Balance Sheet▮ Cash Flow Statement(As of June 30th, 2021)

Account item

AmountAssetsCurrent assets

Unit: million yen(Unit: 100 million yen)Account item

AmountLiabilities[109,434] Current liabilities

2Q of FY ending
Dec. 2020

2Q of FY ending
Dec. 2021

YoY change[40,593]

Cash and deposits

36,329Accounts payable - trade17,113

Cash flow from operating activities

5,796

8,349

+2,553

Accounts receivable - trade
Electronically recordedmonetary claims - operating
Merchandise

27,329

Short-term borrowings

17,000-6,738-3,467+3,271

1,390

Accounts payable - other

2,383

Cash flow from investment
activities
Cash flow from financing activities

8,812

-924

-9,73643,237

Income taxes payable

2,557

1,149

Provision for bonuses
Provision for bonuses for
directors (and other officers)
Other

Effect of exchange rate change on
cash and cash equivalents

-18

9

+27

7,851

3,967

-3,884

18,33032,344+14,014

26,181

36,311+10,129

Other
Allowance for doubtful
accounts
Non-current assets
Property, plant and equipment

0[106,383]

96,055 Non-current liabilities

Buildings and structures

51,055

Machinery, equipment andvehicles

8,373

Tools, furniture and fixtures

1,983

Land

34,432

Construction in progress
Intangible assets
Software
Software in progress
Other
Investments and other assets
Investment securities
Deferred tax assets
Deferred tax assets for land
revaluation
Other
Allowance for doubtful
accounts
Total assets

Long-term borrowings
Provision for retirement
benefits for directors (andother officers)
Long-term guarantee
deposits
Other

210 Total liabilities
6,055
105

Share capital

9

Capital surplus

2,893
847
157
383
-10

66
1,191
[37,815]
35,000151

Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at
beginning of period
Cash and cash equivalents at endof period

2,662
1Equity Ratio: 63.7%

78,409Net assets

5,940 Shareholders' equity

4,272

281

Retained earnings[137,434]
5,022
4,711
127,779

Treasury shares
Accumulated othercomprehensive income
Valuation difference on
available-for-sale securities
Revaluation reserve for land
Foreign currency translation
adjustment
Total net assets

215,818 Total liabilities and net assets©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

-78
[-25]
627
-357
-296

137,408
215,818

Balance Sheet(1) Inventory Amount
While increasing the number of items we handle, we adjust thevolume of stock per item to be kept at logistics centers throughout
Japan in light of the local appeal of each product and sales
frequency.
(2) Fixed Assets
As we practice business with assets, we own distribution center
that is a foundation of the business, head office building,branches and data center, as well as trucks for delivery and sales
personnel vehicles.
TRUSCO NAKAYAMA Investor Relations22

D-(4) [Consolidated] Capital expenditure for the second quarter of the FY ending December 2021
▮ Major past and future capital expenditures
Planned investment amount for 59th business year: 5.74 billion yen
Details of Major Capital Expenditure for 2021
Buildings
Facilities
IT systems
Land(Unit: million yen)

Planet Osaka warehouse construction, Planet East Kanto extension, Repairs, etc.
Planet Saitama

Introducing I Pack, the Auto Store picking robot and others

OthersIntroduction of new handheld terminals, additional installation of devices, etc.

Renewal of Sterra (product data management system), revision to networks security
AI development, website renewal, etc.
Planet Aichi construction plan, HC East Japan distribution center relocation plan

Total

Annual capital expenditures

ActualExpenditure for
1Q-2Q

Expected
Expenditure for
3Q-4Q

533

759

264

479

126

1,768

1,411

400

2,334

3,406

5,740

▮ Change in capital expenditures

197

Unit: 100 million yen

Facilities

171
Digitalization

144

Land andbuildings

80

2017

2018

Non-consolidated

2019

2020

57.4

2021 (Plan)

Capital Expenditure• The investment amount may fluctuate because the scheduledamount of capital expenditure includes expenses for projects at
the planning stage.
• The figures for the 59th business year represent values on a cashout basis.
For FYE December 31, 2021, depreciation of 7,000 million yen (up 500
million yen year on year) is planned.

Consolidated©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCO NAKAYAMA Investor Relations23

E-(1) Plan for this fiscal year
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 the branch 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 theirbranch. Although at the time of forecasting the budget the situation regarding the COVID-19 crisis remained unclear and the budget was rather conservative, as there are signs of recovery inthe market, we revised the budget upward on March 15, 2021. (Consolidated forecast: Revised from ¥220.5 billion to ¥227.5 billion)
58th business year FYE December 31, 2020

(Consolidated)

59th business year FYE December 31, 2021

(Non-consolidated)(Consolidated)(Non-consolidated)

Actual results

YoY change in
value

YoY %

Actual results

YoY change in
value

YoY %

Actual results

YoY change in
value

YoY %

Actual results

YoY change in value

YoY %(Million yen)

(Million yen)(%)

(Million yen)

(Million yen)(%)

(Million yen)

(Million yen)(%)

(Million yen)

(Million yen)(%)

213,404-7,27096.7

213,205-7,151

96.8

227,520+14,115106.6

227,000+13,795

106.5

156,765-13,276

92.2

156,765-13,259

92.2

164,355+7,589104.8

164,355+7,589104.8

e-business route38,417+3,925111.4

38,417+3,925111.4

43,744+5,327113.9

43,744+5,327113.9

Home center route

16,992+2,289115.6

16,992+2,289115.6

17,700

+707

104.2

17,700

+707

104.2

1,228

-208

85.5

1,030

-107

90.6

1,720

+491

140.0

1,200

+169

116.5

Net sales
Factory route

Overseas route
Net sales per day

-

-

-

892

-45

95.1

-

-

-

945

+53

106.0

Sales of PB goods

-

-

-

41,302-2,588

94.1

-

-

-

44,000+2,698106.5

Number of business days

-

-

-

239 days+4 days---

240 days+1 days-

Gross profit

45,909-1,12445,733-1,123

48,960+3,050106.6

48,700+2,967106.5

Gross profit margin (%)

21.5%+0.2pt-21.5%+0.2pt-21.5%±0.0pt-21.5%±0.0pt-Selling, general andadministrative expenses (SGA)

34,891+1,654105.0

34,630+1,695105.1

35,790

+898

102.6

35,500

+870

102.5

Operating income

11,017-2,77979.9

11,102-2,81879.8

13,170+2,152

119.5

13,200+2,098118.9

Ordinary income

11,559-2,638

81.4

11,635-2,667

81.3

13,820+2,260119.6

13,840+2,205

118.9

8,007

-1,606

83.3

8,085

-1,629

83.2

9,520

+1,512

118.9

9,550

+1,465118.1¥121.43-¥24.35¥122.62-¥24.70¥144.37+¥22.94-¥144.82+¥22.20+¥22.20

Net income
Net income per share

97.6

-

97.6

-

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 performance and results may differ from the forecast due to various factors.

©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

TRUSCO NAKAYAMA Investor Relations24

E-(2) FY2021: Major capital expenditure and topics
Environment in which Wholesalers Ship Directly to Users
Delivery time/packaging materials/freightcosts/environmental impact halved.
As it is becoming common to procure items from online shopping companies,
requests for direct shipments to users are rapidly increasing.
In light of the expansion of collaboration with online shops, industry-wide labor
shortages and users' requests for shorter delivery lead times, it is likely that
direct shipments to users will continue to increase, and so it is essential tostrengthen the direct shipment system.

Future specific actions▮ Increase maximum I-Pack shipping
capacity at Planet Saitama
Expected expenditure for fiscal year:
Approx. 270 million yen
Quantity
Facility▮ 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 the remainder))▮ Direct shipments from logistical centers in the whole country to users

1.62 million rows for user direct shipments (up 15.0% on a YoY comparison)
8.62 billion yen in sales of user direct shipments (up 20.0% on a YoY comparison)

Capacity

Present

Future2

3 (+1)(1) I-Pack lines(2) GAS units for IPack2

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

10

19 (+9)(4) Destinationsorting robot-

1 (+1)

Present

FutureInjection of
8,000
parcels per day

Injection of
15,200parcels
per day

Plan for 2021

313
User direct shipments(10 thousand)Plan for 2021

166.3

Sales of user direct
shipments (100 million)

2016

2017

2018

2019

©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

-

300 sorting
sessions per
hourLand acquisition at several locations
1. Land acquisition for Planet Aichi▮ Location:

Kita Nagoya shi, Aichi Prefecture(Land readjustment project site in the West of Okimura in Kita Nagoya)▮ Site area:
12,595 tsubo▮ Expenditure for 2021:
Approx. 1,410 million yen▮ Total expenditure:
Approx. 25 billion yen (under planning)▮ Land leasing fee:
Approx. 5,700 thousand yen per month

2. Land acquisition for HC East Japan Distribution Center2020

2Q, 2021▮ Location:▮ Site area:▮ Expenditure for 2021:▮ Total expenditure:

Fukujimashinden , Sanjo shi , Niigata Prefecture
7,986 tsubo
Approx. 380 million yen
To be determined (under planning)
TRUSCO NAKAYAMA Investor Relations

25

Reference 1: [Consolidated] Quarterly business performance for the FY ending December 2021

▮ Second quarter of FY ending December 2021 [Quarterly]
Unit: million yen, %1st Quarter (+1 day)2nd Quarter (±0 day)3rd Quarter (±0 day)Share
againstnet sales

YoYchangeShareagainstnet sales

YoYchangeShareagainstnet sales

58,121

100.0

+ 1.1

55,949

100.0

+ 9.9

58,246

100.0

+ 1.3

55,642

100.0

+ 9.3

12,516

21.5

- 0.3

12,47422.3+ 10.012,543

21.5

- 0.1

12,099

21.7

+ 6.7

8,811

15.2

- 4.4

8,899

15.9

+ 4.5

8,752

15.0

- 5.1

8,664

15.6

+ 1.8

3,705

6.4

+ 11.03,575

6.4+ 26.63,790

6.5+ 13.63,434

6.2+ 21.63,943

6.8+ 16.53,807

6.8+ 26.3

3,995

6.9+ 18.0

3,695

6.6

+22.6

2,725

4.7

+ 17.42,615

4.7+ 29.92,712

4.7+ 16.92,524

4.5+ 25.4

BudgetBudgetNet sales

Actualresults
BudgetGross profit

Selling, general andadministrative expenses(SGA)

Actualresults
BudgetActualresults
BudgetOperating income

Actualresults
BudgetOrdinary income

Quarterly profit
attributable to owners ofparentActualresults
BudgetActualresults©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

BudgetBudget

4th Quarter (±0 day)YoYchangeBudgetShareagainstnet sales

YoYchange54,981

100.0

+ 9.2

58,469

100.0

+ 7.0

11,66421.2+ 10.1

12,306

21.0

+ 7.8

8,790

16.0

+ 2.0

9,290

15.9

+ 8.8

2,874

5.2

+ 45.4

3,016

5.2

+ 4.7

2,958

5.4

+ 43.7

3,112

5.3

+ 0.4

2,034

3.7

+ 47.3

2,146

3.7

- 6.4

TRUSCO NAKAYAMA Investor Relations

26

Reference 2: [Consolidated] Quarterly business performance for the FY ending December 2021

▮ Fiscal year ending December 31, 2021 [Cumulative]
Unit: million yen, %1st Quarter (+1 day)BudgetShareagainstnet sales

2nd Quarter (±0 day)YoYchangeBudgetShareagainstnet sales

3rd Quarter (±0 day)YoYchangeBudget58,121

100.0

+ 1.1

114,070

100.0

+ 5.2

Actualresults

58,246

100.0

+ 1.3

113,888

100.0

+ 5.1

BudgetGross profit

12,516

21.5

- 0.3

24,990

21.9

+ 4.6

Actualresults

12,543

21.5

- 0.1

24,643

21.6

+ 3.1

Selling, general andadministrative expenses(SGA)

Budget

8,811

15.2

- 4.4

17,710

15.5

- 0.1

Actualresults

8,752

15.0

- 5.1

17,417

15.3

- 1.8

Budget3,705

6.4+ 11.0

7,280

6.4+ 18.2

Actualresults

3,790

6.5

+ 13.67,225

6.3+ 17.3

Net sales

Operating income

BudgetOrdinary income

3,943

6.8

+ 16.57,750

6.8+ 21.1

Actualresults

3,995

6.9

+ 18.07,691

6.8+ 20.2

Quarterly profit
attributable to owners ofparentBudget2,725

4.7+ 17.45,340

4.7+ 23.2

Actualresults

2,712

4.7

+ 16.95,237

4.6+ 20.8©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

4th Quarter (±0 day)Share
againstnet sales

YoYchange169,051

100.0

+ 6.5

227,520

100.0

+ 6.6

36,654

21.7

+ 6.3

48,960

21.5

+ 6.6

26,500

15.7

+ 0.6

35,790

15.7

+ 2.6

10,1546.0+ 24.813,1705.8+ 19.5

10,7086.3+ 26.6

13,8206.1+ 19.6

7,374

4.4+ 29.09,520

4.2+ 18.9BudgetBudgetShareagainstnet sales

YoYchange

TRUSCO NAKAYAMA Investor Relations

27

Reference (3): Company data
▮ Number of employees [Consolidated]
Executives
Executive officers
CareerArea
SupportSpecialist
Logistics
Contract employees
Overseas subsidiaries
Seconded to health insurance
association

Males
10
2
435
301
2
12
269
32
24

Total
11
2
608
579
26
27
351
33
42

YoY Change
-1
±0
-31
+8
-4
-3
-1
-3
±0

2

0

2

±0

0

0

0

±0

Seconded to Nakayama Visually
Impaired Welfare Foundation
Total number of employees(excludingPart-time employees
Total▮ Average age and annual income

As of the end of June 2021

Females
1
0
173
278
24
15
82
1
18

593

1,077

1,670

-34

888
1,482

316
1,403

1,204
2,885

+79
+44

Average age (years)
Males

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

Females

Males

Females

Males

Females

Males

Females

Males

Females

Males

510

1004

557

1,051

585

1,071

589

1085

593

1077

No. of incoming
employees

63

No. of outgoing
employees

18

1,608
72

52

18

20

135

3.4

57

41

26

42

109

36
1.8

3.5

2.4

2018

37

44

37

6.7

2019

5.9

23

33

19

2

Branches

61

21

Distribution centers

17

Overseas bases

3

Stock centers

9

Total

92

24

43
3.1

2.2
2.5

▮ Changes in inventory disposal and inventories

2Q 2021
Inventory disposal (million yen)Amountirrecoverable

0

4

0

©2021 TRUSCO NAKAYAMA CORPORATION All rights reserved.

0275

Entirecompany

Head offices

44

3.0
4.0

Unit: 10 thousand yen
2020

42

70
3.9

Logistics

1,670

79

4.9

▮ Amount irrecoverable due to bankruptcy
2017

46

86

2.8

End of Jun. 2021
[Consolidated]

1,674

87

46

2.3

2020
[Consolidated]

1,656

Area

As of the end of June 2021

2018
[Non-consolidated]

1,514

2019
[Consolidated]

Career▮ Number of bases [Consolidated]* Excluding part-time employees

2017[Non-consolidated]

No. of employees

Turnover ratio

Females* 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 werediscontinued, 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 average annual income figures are on a non-consolidated basis.

Share of female employees: 35.5%, Number of female sales staff members: 60,
Females in career track positions account for 29.1% of all female employees (whereas such males
account for 40.3% of all males).
* The number of part time employees represents the actual number of such workers under employment.

▮ Numbers of incoming and outgoing employees

Average annual income (million yen)

Entirecompany

2016

2017

2018

2019

2020

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

28