The 59th Business YearBusiness Performance Data Analysis
Fiscal Year Ended December 2021

Published by:Trusco Nakayama Corporation Securities code: 9830

Atsushi Shimozu, General Manager of the Corporate Planning Div. /Miki Fujitani, Manager of the Corporate Planning and IR Section / Minori Naito, 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

Company overview
Founding

As of the end of December 2021

➣ Change in Net Sales, Ordinary Income andDepreciation

May 15, 1959

(Unit: 100 million yen)
Net sales

Tetsuya Nakayama, President
Representative

Ordinary income

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 (as of January 1, 2022)
88 domestic bases: 2 head offices, 59 sales branches, 27 distribution
centers
5 overseas bases: Local subsidiaries: Thailand and Indonesia
Representative office: Germany, Taiwan, and Indonesia

Depreciation

2,293 Net sales
2,142

2,206

2,134

1,950

Ordinary
income

145

146

141

115

135
Depreciation

Capital stock

5,022,370,000 yen

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

Number of
employees

2,906 [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 used infactories) and planning and development of products under the company’s
own brand, TRUSCO

27

36

2017

2018

[Non-consolidated]

48

2019

65

69

2020

2021

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

Business flow
Suppliers

Trusco Nakayama (wholesaler)

Main sales agents, 5,527 companies

Target markets (main users)

Factory route

Machine tool dealers, dealers of welding materials,
dealers of pipe materials, conductor dealers, dealersof electric materials, dealers of packaging materials

Manufacturers, construction
companies(up 314companies)

e-business route

Mainly internet order companies

Manufacturers, general consumers

Of these, 304 areoverseas manufacturers(up 92 companies)

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

Manufacturers

2,966

Information in parentheses ( )indicates change from the end of
the previous fiscal year.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations2

A-(1) [Consolidated] Business performance for the FY ended December 2021
- Net sales: Up 7.5% YoY, down 0.8% from budget. Number of business days: 240 (Up 1 YoY) * The number of business days is the non-consolidated number.
- Gross profit margin: 21.0%, 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.
- SGA: Up 1.4% year on year following a rise in freight and packing expenses in line with a sales hike and growth in depreciation after the rebuilding and extension of distribution centers,
offsetting a fall in advertising expenses after the discontinuation of the shareholder benefit program and a decline in leasehold and office rents following cancellation of an external warehouse(for details about SGA, see pp. 21-22.)- 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.
It is excluded from the calculation of dividends in accordance with the dividend policy announced in February 2021 given that it is extraordinary income not directly related to business activities.

FY ended December 2020

Actual results

Share

FY Ended December 2021

Actual results

Share

YoY
Change(%)

BudgetChangefrom budget(%)

BudgetShare

Change frombudget+¥1,822 million+0.8

Net sales¥213,404 million-¥229,342 million

-

+7.5

¥227,520 million-

Gross profit¥45,909 million

21.5%¥48,275 million

21.0%

+5.2

¥48,310 million

21.2%-¥34 million-0.1

Selling, general andadministrative expenses(SGA)¥34,891 million

16.4%¥35,383 million

15.4%

+1.4

¥35,140 million

15.4%+¥243 million+0.7(depreciation included in SGA)

¥6,565 million

3.1%¥6,929 million

3.0%

+5.6

¥6,828 million

3.0%+¥101 million+1.5

Operating income¥11,017 million

5.2%¥12,891 million

5.6%

+17.0

¥13,170 million

5.8%-¥278 million-2.1

Ordinary income¥11,559 million

5.4%¥13,572 million

5.9%

+17.4

¥13,820 million

6.1%-¥247 million-1.8

Profit attributable to ownersof parent¥8,007 million

3.8%¥11,680 million

5.1%

+45.9

¥11,970 million

5.3%-¥289 million-2.4

Net income per share¥121.43－¥177.13--¥181.52--¥4.39-Dividend per share¥30.50－¥35.50--¥36.50--¥1.00-©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations3

A-(2) [Consolidated] Company-wide monthly sales and[Non-consolidated] sales per day for the FY ended December 2021
▮ [Consolidated] Company-wide monthly sales
Sales for the fiscal year under review (million yen)( ) Sales in the same month previous year (million yen)

23,689(22,011)22,00020,681 20,614
20,08620,00018,742

18,118(17,577)(15,268)(14,664)(17,206)

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

17,135

16,813

16,438(17,494) (18,073)

18,539(18,033)(18,274)

18,000(17,842) (18,735)

19,144 19,337(18,222)▮ Non-consolidated] Change in average
daily sales (all business offices)

16,000

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

15.9
14.7

14,000

12.2

10.2

10.0

12,000

911
(905)

7.6

10,0003.9

1,029
1,004(1,050)(1,015)890

1,031 1,026(937) (933)956
911 924 900
919(813) (826) (836) (846) (874) (820)
(857)

9.4

+14.6

6.9

8,000

932

5.5

+10.3 +10.5

+9.4

+3.8
+6.3

+0.6

6,000

+12.0
+10.1 +10.0

Year-on-year change (%)
4,000

-0.9

-1.0
-2.0

2,000

Year-on-year change (%)-4.50
Number ofbusiness days

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

18
(-1)

18
(±0)

23
(+2)

21
(±0)

18
(±0)

22
(±0)

20
(-1)

19
(+1)

20
(±0)

21
(-1)

20
(+1)

20
(±0)

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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

TRUSCO NAKAYAMA Investor Relations4

B-(1) [Consolidated] Net sales, gross profit margin and ordinary income by sales route▮ Net sales by sales route
FY ended December 2020
Gross profit
marginOrdinary income

Share Actual results

Actual results

Actual results

Share

YoY change

Net sales
Sales route

Actual results

FY Ended December 2021
Gross profit
marginNet sales
YoY Change

BudgetBudgetChange frombudgetOrdinary income

ChangeActualfrom budget results

YoY
ChangeActual results

YoY
ChangeFactory route¥156,765 million 73.4%

20.9%¥7,863 million¥164,605 million

71.8%+¥7,839 million+5.0%¥164,355 million+¥250 million+0.2% 20.6%-0.3pt¥9,239 million+17.5%

e-business route¥38,417 million 18.0%

25.3%¥3,137 million¥44,668 million

19.5%+¥6,251 million+16.3%¥43,744 million+¥923 million+2.1% 23.6%-1.7pt¥3,407 million+8.6%

Home center
route¥16,992 million

8.0%

17.6%

¥290 million¥18,373 million

8.0%+¥1,380 million+8.1%¥17,700 million+¥673 million+3.8% 17.6%±0.0pt¥455 million+56.9%

Overseas route¥1,228 million

0.6%

32.0%

-¥210 million¥1,694 million

0.7%+¥465 million+37.9%¥1,720 million-¥25 million-1.5% 32.8%+0.8pt-¥32 million-¥213,404 million 100%21.5%

¥11,559 million¥229,342 million

100%+¥15,937 million+7.5%¥227,520 million +¥1,822 million+0.8% 21.0%-0.5pt ¥13,572 million+17.4%

Total▮ Factory route: Down 5.0% year on year
The Company increased inventories to suit market needs and streamlined order placing and receiving processes with the use of digitaltechnologies. The Company carried out highly professional sales activities including positive proposals of the MRO Stocker andstrengthening of direct shipments to users to increase convenience for clients. (See p. 9)▮ e-business route: Up 16.3% year on year
Sales to mail order companies surged by 17.2% year on year, and those to companies participating in Orange Commerce increased by
13.2%. Continued efforts to link the product database covering around 2.76 million items with clients' systems and direct shipments tousers based on the six I-Pack® lines introduced to four distribution centers helped increase sales. (See pp. 10-11)▮ Home center route: Up 8.1% year on year
The active proposal of improving in-store displays to general hardware mass discounters and pro-tool shops continued. Linking ecommerce using the Company's inventories of 500,000 items and logistics facilities was helpful to boosting sales and achieving a brisk
performance. (See p. 12)▮ Overseas route: Up 37.9% year on year
Amid restrictions on social activities under the pandemic, the Company accelerated the offering of product data to e-commerce operatorsand otherwise increased transactions with existing clients. Transactions increased with new local clients including e-commerce operatorsand general hardware mass discounters. (See p. 13)©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations5

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

4,535
(3,853)

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

3,999
3,644

3,484

(3,245)3,250 (3,236)

3,978
3,821 (3,146)(3,318)3,518 3,367(3,174)

3,318(3,338)(3,221)(2,792)(2,743)(3,026)

3,693 (3,320)

4,056

+26.5

17,326+20.9(16,647)

+20.6

+20.5

+21.5

+17.7

+14.7

+10.8

14,821(13,138) 14,580(13,771)

14,355(13,242)

13,422

13,156

13,554

12,176

11,831

11,760

Jan.

+12.8
+8.4

+9.0

+1.7

+14.0

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

23
(+2)

21
(±0)

18
(±0)

22
(±0)

20
(-1)

19
(+1)

20
(±0)

21
(-1)

20
(+1)

20
(±0)

Number of business days

18
(-1)

+5.2

+5.4
+4.1

Year-on-year change (%)+7.6(11,029)(10,381)(12,906)

+15.1
+12.3

+7.4

(12,622) (13,181)(12,854)(13,193)(13,796)

13,755 13,863

+5.9

+10.4

18
(±0)

▮ Change in monthly sales earned via home center route
Sales for the fiscal year under review (million yen)( ) Sales in the same month previous year (million yen)

1,676
(1,405)(1,433) (1,561)

-8.9
+21.3

1,450 (1,572) 1,512(1,470)(1,447)

1,322 (1,367)(1,473)(1,164)Year-on-year change (%)-4.6(1,491)

1,348
1,305 (1,112)

1,807
1,727 (1,493)

1,575

1,540 1,526 1,581

Year-on-year change (%)

+19.3

+19.3

+12.1
+3.3

+6.5

+6.1

+1.3

+21.0

+0.2

-10.3

+2.9
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

23
(+2)

21
(±0)

18
(±0)

22
(±0)

20
(-1)

19
(+1)

20
(±0)

21
(-1)

20
(+1)

20
(±0)

Number of business days

18
(-1)

18
(±0)

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

23
(+2)

21
(±0)

18
(±0)

22
(±0)

20
(-1)

19
(+1)

20
(±0)

21
(-1)

20
(+1)

20
(±0)

Number of business days

18
(-1)

18
(±0)

TRUSCO NAKAYAMA Investor Relations6

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

Factory route net sales for the FY ended Dec. 2020 (million yen)
Factory route net sales for the FY ended Dec. 2021 (million yen)( ) YoY change

Civil engineering andbuilding machinery
lease operators
2%
Dealers inpackagingmaterials
2%38,283(+1.4%)
37,74630,328(+5.6%)

23,201 28,725
17,440(+5.6%)
16,513(+6.7%)

15,462(+4.7%)(+7.2%)(+6.6%)

17,122

14,32814,4996,599

Dealers of piping
materials
4%
Conductor dealers4%(+8.3%)
6,095
Hokkaido and Kita-Kanto
Tokyo
Tohokuand Shinshu Metropolitan

Machine tool
dealers51%

Hardware retailers
6%

Hokuriku

Tokai

Kinki

Chugoku andShikoku

Other
13%

Dealers inelectrical materials
2%17,92821,734

15,361

Automotive
dealers2%

Dealers of
welding
materials
14%

Kyushu▮ Factory route sales by industry
FY ended December 2020
Gross profit
marginNet sales
Sales route
Actual results

FY ended December 2021

Share

Actualresults

Net sales
Actual results

Share

YoY
ChangeGross profit margin
BudgetChange frombudgetActual results

YoY Change

Machine tool dealers¥78,358 million

50.0%

20.7%

¥83,378 million

50.7%

+6.4%

¥81,870 million

+1.8%

20.4%

-0.3ptDealers of welding materials¥22,988 million

14.7%

21.2%

¥23,384 million

14.2%

+1.7%

¥24,075 million

-2.9%

20.9%

-0.3ptOther manufacturing related(incl. physical and chemical material,conductors, packaging material dealers)¥25,703 million

16.4%

20.7%

¥27,472 million

16.7%

+6.9%

¥27,061 million

+1.5%

20.2%

-0.5ptConstruction related¥29,716 million

18.9%

21.5%

¥30,370 million

18.4%

+2.2%

¥31,347 million

-3.1%

21.4%

-0.1ptTotal net sales via factory route¥156,765 million

100.0%

20.9%¥164,605 million

100%

+5.0%

¥164,355 million

+0.2%

20.6%

-0.3pt©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations7

B-(4) [Consolidated] Sales via the e-business route▮ E-business route sales by industry
FY ended December 2020
Gross profit
marginNet sales

FY Ended December 2021

▮ End of specialization in pro tools

Net sales

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.

Gross profit margin

Sales route
Actual results

Share

Actualresults

YoY
Change24.6%¥35,005 million

78.4% +17.2% 22.6%-2.0pt

22.2%

27.8%

¥9,662 million

21.6% +13.2% 27.3%-0.5pt¥38,417 million 100.0%

25.3%¥44,668 million 100.0% +16.3% 23.6%-1.7ptActual results

Share

Actual results

Mail order companies¥29,879 million

77.8%

Companies
participating in Orange
Commerce (Trusco's
electronic central
purchasing system)¥8,538 million

Total net sales via ebusiness route

YoY
Change▮ Trend in sales to mail order companies(Billion yen), ( ) YoY change

350▮ Sales to mail order companies:
Sales percentage by industry
Dealers of physical chemical
and medical devices
2%
Hardware retailers
2%

Dealers of piping materials
2%
Other
3%

Machine tool dealers4%(+17.2%) Other mail ordercompanies
5%

234
181

(+29.1%)264(+12.7%)298(+13.0%)(+32.6%)

Retailers of homeelectrical appliances
8%
Yodobashi Camera,
Bic Camera, etc.

MRO mailordercompanies
43%

Stationery mailorder companies
13%

MonotaRO,
Misumi, etc

Askul, Otsuka
Corporation, etc.

2017

2018

2019

2020

2021

Generalmail ordercompanies
18%

Amazon, etc.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations8

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) and2,042
the number of companies participating in it▮Use-first-pay-later tools
2000

Sales to companies participating in Orange Commerce (billion yen)
No. of companies participating in Orange Commerce( ) YoY change992

96(+13.2%)

1500

1,235
1,057

80

85
1000

(+6.2%)

72
61

1,414

(+10.5%)▮ MRO Stocker
A wide variety of professional tools (consumables used in factories) are usedin the manufacturing industry and on construction sites. The MRO Stocker
provides digital value that combines the Use-First-Pay-Later business modelwith the latest information technologies and advanced data analysis.
Supplying professional tools necessary to users in the MRO Stocker inadvance, the service achieves an overwhelming speed of zero lead time.
With an easy-to-use app, users can use as many tools as they need when
they need. This service is thus friendly to the environment as well.

▮ MRO Stocker operation process flow(+17.5%)(+19.8%)
500

0

2017

2018

2019

2020

2021

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

▮ Orange Commerce (Trusco's electronic central purchasing system)
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.

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

Receipt of order data

Orange Commerce

Trusco Nakayama

Dealers
Deliveryof goods

Customers
Deliveryof goods

Conducting business among customers, distributors and Trusco Nakayama by
connecting customer’s purchasing system with Trusco’s central purchasingsystem©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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

Number of MRO Stockers introduced:

329 as of the end of December 2021
TRUSCO NAKAYAMA Investor Relations9

B-(6) [Consolidated] Results of the home center route
The Company is actively making proposals on floor spaces to general hardware mass discounters and to pro-tool shops across the country.
For general hardware mass discounters strengthening their online shop operations, the Company is working on omni-channel business
operations. With its overall strength, it will help them improve their services for customers visiting their stores.

▮ Change in sales earned via home centers▮ Change in sales to pro-shops(Unit: million yen, %)000

16,992

000

000

000

12,39813,466

18,373

14,702

+20.0
2,500

000

1,500

+8.6

000

+10.0
+8.11,000

+9.2

000

000

2,802
2,403
2,137

2,000
+15.0

+15.6

000

000

(Unit: million yen, %)

+25.0
3,000

+16.6
+12.4

+10.0
Year-on-year change (%)

+5.0
500

Year-on-year change (%)

+3.2
0
+0.0

0
2017

2018

2019

2020

+25.0

[What is a pro-tool
shop?]+20.0
Pro-toolshops refer todealers specializing in+15.0for professional
tools
craftspeople and factory+10.0
workers.
They are socompatible with our+5.0
products
that sales tothem are rising.
+0.0

2019

2020

2021

2021

▮ Main actions■ Proposals on floor spaces■ Proposals on private
brand goods■ Linkage between real storesand e-commerce sites

The Company gave proposals
that would lead to expansionof clients' sales with the use ofhuge data of sales about
approximately 2.76 million
items handled on individual
routes in analyses of floor
spaces and in proposals ofplans.

The Company proposed
foldable containers,
protective equipment, trolleys
and other distinctive private
brand goods to make goodachievements.

Taking advantage of its extensive
inventories and product data, theCompany stepped up its efforts foromni-channel operations including
offering of product information to ecommerce sites run by clients, pick-up
of goods at real stores, collaboration ininventory data and direct shipments tousers.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

10

TRUSCO NAKAYAMA Investor Relations

B-(7) Business performance (Non-consolidated)▮ Non-consolidated business performance
Fiscal Year Ended December 2021
TRUSCO NAKAYAMA CORPORATION(non-consolidated)
Net sales

Share

TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITEDYoY Change

Net sales

Share

PT. TRUSCO NAKAYAMA INDONESIAYoY Change

Net sales

Share

YoY Change

Net sales¥228,906 million

-

+7.4%

¥728 million-+27.0%¥331 million-+60.6%

Gross profit¥48,008 million

21.0%

+5.0%

¥165 million

22.7%+29.5%¥84 million

25.6%+91.0%

Selling, general andadministrative
expenses (SGA)¥35,104 million

15.3%

+1.4%

¥141 million

19.5%

-3.7%

¥135 million

40.9%+15.0%

Depreciation includedin SGA¥6,859 million

3.0%

+5.6%

¥21 million

3.0%-22.5%¥48 million

14.7%+18.7%

Operating income¥12,903 million

5.6%+16.2%¥23 million

3.2%

-

-¥50 million--

Ordinary income¥13,596 million

5.9%+16.9%¥23 million

3.3%

-

-¥47 million--

Net income¥11,635 million

5.1%+43.9%¥23 million

3.3%

-

-¥47 million--*1 baht = 3.43 yen*1 rupiah = 0.0081 yen[Reference] Non-consolidated business performance in other overseas regions
Fiscal Year Ended December 2021
Net sales
Actual results
Business performance in otheroverseas regions (including thePhilippines, China and South Korea)

Share against net sales
YoY Change©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved¥635 million-

Gross profit¥172 million
27.1%+41.3%+54.3%* The consolidated gross profit margin via overseas
routes is higher than the non-consolidated gross profit
margin because of consolidated accounting, which
includes measures such as the offsetting of internaltransactions.

TRUSCO NAKAYAMA Investor Relations11

B-(8) [Non-consolidated] Analysis of sales for FY ended December 2021
▮ Analysis of sales for FY ended December 2021

(Million yen)

Rise in demand due
Decrease in sales ofmainly to recovery inseasonal products Decrease in others
Rise in demand due capital expenditures
mainly to recovery
in manufacturing+4,019-136+12,194
Fiscal Year Ended
December 2020
Net sales

213,205

Fiscal Year Ended
December 2021
Net sales-376

Details[Increased demand for consumables due mainly to recovery in manufacturing]+12,194 million yen- Hand tools (e.g. tools for manual work and electric power tools):+3,265 million yen- Work supplies (e.g. adhesives and packaging supplies):+3,012 million yen- Environmental safety equipment (e.g. fall-arrest protective equipment): +2,074 million yen

228,906(+7.4%)[Rise in demand due mainly to recovery in capital expenditures] +4,019 million yen- Distribution and storage equipment (e.g. transportation goods and loading goods):+2,354 million yen- Construction goods (e.g. hardware and building materials):+1,665 million yen[Decrease in sales of seasonal products] -136 million yen- Cooling equipment:-136 million yen

Net Sales up 15,700 million yen©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

12

TRUSCO NAKAYAMA Investor Relations

B-(9) [Non-consolidated] Analysis of sales by category (large and medium) for the FY ended
December 2021
A recovery of production operations led to a rise in sales of products related to factory production and to capital expenditures. A revision to
the law that introduces an obligation to wear full harness-type fall arrest systems increased demand for harness-type systems. Meanwhile,
demand for face masks and protective clothing for the prevention of COVID-19 infections began to subside.

▮ Sales graph by large category and details of medium category
Share(%)
Category of goods(large category)
1. Cutting tools

Medium category(1) Cutting tools

3.1
2. Production
processing goods

7.6

3. Construction goods

11.5

Gross profit
marginCategory of goods(large category)Medium category

Trusco’s sales

Share

YoY
ChangeGross profit
margin11.3 6. Environmental safety
equipment
22.2
17.6

(25) Protective equipment

21,598

9.4

+3.0

23.2

(26) Safety goods

9,862

4.3

+9.4

25.6

+7.8

15.8

(27)

2,022

0.9

+11.4

19.6

+6.9

15.6

(28) Air conditioning goods

3,846

1.7

-3.4

15.3

1.5

+17.3

3,751

1.6

+5.0

(3) Measurement equipment

9,018

3.9

(4) Mechatronics

3,603

1.6

Environment improvement
goods(5) Tools for machine tools

2,136

0.9

+6.3

23.6

Disaster and crime prevention
(29)
goods

1,153

0.5

+28.8

21.0

(6) Electronic machinery

2,604

1.1

+7.8

11.1

(30) Closets and exterior goods

1,932

0.8

+7.5

19.9

(7) Hydraulic tools

1,861

0.8

+2.4

(31) Loading goods

7,158

3.1

+6.3

17.5

(8) Pumps

3,325

1.5

+5.7

11.5 7. Distribution andstorage equipment
16.4(32) Conveyors

1,128

0.5

+2.6

15.8

(9) Welding equipment

2,122

0.9

+5.4

17.9

(33) Transportation goods

9,506

4.2

+14.6

22.8

(10) Painting and interior goods

2,352

1.0

+4.7

25.8

(34) Containers and vessels

3,747

1.6

+10.1

30.6

Civil engineering and(11)building goods

2,467

1.1

-0.3

12.8

(35) Steel shelves

3,609

1.6

+10.8

26.9

(12) Ladders and stepladders

3,063

1.3

+6.6

1.7

+13.6

22.0 8. Research
management
equipment
23.2(36) Tool wagons

3,876

Piping and materials ofelectronic equipment
Component, hardware, andbuilding materials(15) Cutting goods

5. Hand tool

YoY Change

3,470

(14)

18.6

Share

Drilling and thread cutting
tools

(2)

(13)

4. Work supply

Trusco’s sales

11.0

(37)

Storage and management
goods

944

0.4

+5.1

28.7

1,239

0.5

+12.5

31.4

4.3
7,222

3.2

+9.4

27.1

(38) Work benches

1,548

0.7

+17.2

30.3

1,447

0.6

+8.8

21.8

(39) Stainless goods

1,893

0.8

+6.4

18.3

Research and development(40)related goods

Grinding and polishing
(16)
goods

7,125

3.1

+5.2

23.1

4,241

1.9

+0.3

18.7

(17) Chemical products

21,656

9.5+7.6(41) Cleaning utensils

6,144

2.7

+7.7

21.8

Miscellaneous goods for(18)
factories

3,887

1.7

+4.7

21.7 9. Office and housing
facility equipment
16.2(42) Stationery

2,297

1.0

+15.9

19.3

(19) Packing and binding goods

5,574

2.4

+12.4

31.3

(43) Office miscellaneous goods

3,093

1.4

+2.1

27.0

(20) Casters

2,903

1.3

+8.2

18.3

(44) Electric appliances

3,282

1.4

+0.7

22.3

9.1

(21)

Electric power tools andaccessories

10,014

4.4

+7.3

14.6

(45) OA business machinery

2,013

0.9

+21.6

25.8

(22)

Pneumatic tools andaccessories

6,232

2.7

+8.3

18.1

(46) Office furniture

3,616

1.6

+2.8

24.7

(23) Tools for manual work

19,530

8.5

+11.1

21.3

(47) Interior goods

319

0.1

+20.7

17.8

(24) Tool boxes

1,906

0.8

+8.7

29.9 10. Others(48) Entire company

1,552

0.7

-18.4

-28.4

228,906

100.0

+7.4

21.0

16.5

(Unit: million yen, %)©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

0.7

Total

13

TRUSCO NAKAYAMA Investor Relations

B-(10) [Non-consolidated] Analysis of sales by category (small)for the FY ended December 2021★: Coronavirus outbreak-related demand▮ Changes in sales for the FY ended December 2021
+ million yen

Electric screwdrivers

Containers

Anti-slip gloves

Shelves

Adhesives+19.3%+15.5%+133+154-15.8%-53.7%-29.2%-16.4%

-9.8%

-292

-282

-277

-219

-189

-132

-97

-86

-76

+32.7%+116

Head and neck coolingequipment★ Sterilization andhygiene goods★ Hand washing andmouth washing goods★ Hand sanitizers-31.4%-61-21.8%-26.5%-44.1%

-48

-36

-35
Lanterns-14.9%+125

Multi-drawer
document cabinets-17.0%+11.2%

Sheets-17.8%+13.4%+128

Heat stroke
preventative goods-19.7%★ Masks for working withexchangeable filters△600+47.7%+184

Power
generators△500

Coolers△400+23.5%+191

Spot air conditioners
and cooling fans

△300

★ General-purpose face masks

Sales decrease△200-1,010-28.5%-540

Harness lanyards△100-39.7%+18.0%+217★ Protective glasses+0+58.2% +150.2% +11.0%
+236
+228
+224

★ Protective clothing

0+0+99.7%+270
Waist belt-type
personal fall arrest
systems

+100

Chips

+200

+19.4%+296

Torque management tools+300

Safety shoes (JPSA)

Sales increase+400+30.0%+494

Harness-type personal fallarrest systems+500+61.3%+585

Cable ties

Lift trucks and handpallet trucks+600(Million yen)

★ Anti-droplet partitions

+700

△700

-million yen△800©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

14

TRUSCO NAKAYAMA Investor Relations

B-(12) [Non-consolidated] Sales of private brand (PB) goods
for the FY ended December 2021
For PB goods, demand for environmental safety equipment related to the prevention of COVID-19 infections paused. Other products
achieved higher sales than in the previous year on the strength of a recovery in production activities.

▮ Change in sales of PB goods

Unit: million yen, ( ) YoY change

43,445(+5.2%)

43,596(+8.6%)

43,89041,302(+0.7%)(-5.9%)

2017

2018

2019

2020

2021

Share

20.6%

20.3%

19.9%

19.4%

19.0%

Gross profit
margin

35.9%

35.7%

35.8%

36.4%

36.2%

40,144(+8.3%)▮ Private Brand (PB) goods
The Company's own brand, TRUSCO, is born out of anaspiration to provide professional quality to professional
technologies. Introducing ideas where possible, the brandcovers the widest variety of items among brands ofconsumables for factories. Approximately 10,000 new
items have been developed annually.

▮ Sales of PB goods by segment and by category of goods (Million yen) ▮ PB sales ratio by category of goods* Excluding the overseas route
Segment

Category of goods

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

Entire company

Factory routee-business route

Home center route

Share
19.0%
Share
19.3%
Share
23.4%
Share
5.2%
Gross profit margin 36.2%
Gross profit margin 36.2%
Gross profit margin 36.6%
Gross profit margin 31.3%
Net sales
YoY Change
Net sales
YoY Change
Net sales
YoY Change
Net sales
YoY Change

43,445
698

+5.2%
+3.0%

31,753
503

+4.0%
+3.2%

10,452
117+10.4%
+1.4%

954
68

-9.4%
+1.8%

1,562

+8.2%

1,134

+6.5%

383

+13.7%

18-13.1%

3,749

+8.1%

2,676

+5.5%

991

+15.9%

60

-0.5%

7,816
4,470

+6.1%
+5.1%

6,171
3,148

+5.0%
+4.2%

1,508
1,126

+10.8%
+8.2%

79
120

+0.0%
-13.5%

7,142

-9.2%

5,408

-9.2%

1,595

-5.2%

118

-41.9%

10,478+12.2%

7,393+11.7%

2,596+16.2%

448

+0.2%

3,380

+12.2%

2,508

+9.1%

850

+22.6%

2-15.1%

4,142

+7.1%

2,807

+5.1%

1,281

+11.9%

35+29.3%

3-24.7%

0

+1.0%

0

+0.0%

3

-24.7%©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Cutting tools
1.6%
Office andhousing facility
Research equipment
management 9.5%
equipment
7.8%

Production
processing goods
3.6%

Construction
equipment
8.6%

Distribution andstorageequipment
24.1%

Work supply
18.0%

Hand tool
10.3%

Environmental
safety equipment
16.4%

15

TRUSCO NAKAYAMA Investor Relations

C-(1) Number of suppliers, sales of newly listed goods, number of items in inventory,
inventory shipping rate, number of sales accounts and number of companies▮ Non-consolidated] Changes in the number of suppliers and▮ [Non-consolidated] Change in the number ofsales of goods newly featured in the TRUSCO Orange Book
inventory items and the inventory shipping rate
600,000(Companies, 100 million
yen)
91.3 %
91.0
90.5
2,966
89.9
89.5

(*2)

3,000

2,477
2,500

2,000

2,537

2,652

499,964 items

500,000

442,436

2,339

2,289
2,204
2,142
(*1)
2,132
88 Approx.400,000
Approx.
84
1,950
Approx.
102 Approx.
83 4% 2,200 4%
4%
96 Approx. 2,040 5% 2,120
2,048
5%300,000
1,854

374,600

392,100

336,800

1,500

200,000
1,000

100,000
500

Number of inventory items
Inventory shipping rate (%)

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

Number of suppliers
0
2017

2018

2019

2020

2017

2021

▮ [Consolidated] Change in number of sales accounts
and companies
35, 000

30, 000

Number of sales accounts
Number of companies

27,14026,168(*3)
10, 000

29,561
26,8818,0 007,0 00

5,333

5,323

5,592

5,515

5,527

6,0 0015, 000

5,0 0010, 000

4,0 00

2017

2018

2019
Consolidated

2020
Consolidated©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2019

2020

2021

*1. Products newly listed in our product catalogue, TRUSCO Orange
Book, for the relevant year account for approximately 4% of total
sales.

9,0 0027,55025, 000

20, 000

2018

2021
Consolidated*2. Inventory shipping rate: Number of rows used for products shippedfrom inventory divided by the total number of rows used fororders.
*3. The number of accounts is experiencing an upward trend amid
growth of transactions with corporate customers with multiple
stores.

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

16

TRUSCO NAKAYAMA Investor Relations

D-(1) [Consolidated] Major changes in selling, general and administrative expenses (SGA)
for the FY ended December 2021

Depreciation

Repairexpenses,
etc.

+364
Freight andpacking
expenses

Advertisingexpenses

Unit: million yen, ( ) YoY change

+224

-234

Leasehold andoffice rents(+77.7%)(-31.5%)-215(+5.6%)(-39.0%)

Supplies
expenses-91(-16.3%)

+490

Other

-45
(-0.2%)(+7.8%)
Major factors of changes inadvertising expenses

35,383- Expenses related to the shareholder
benefit program (-171 million yen)

SGA for
2020

34,891

SGA for
2021(+1.4%)

Main factors of changes in repair
expenses

Main factors in change in leasehold
and office rents- Expenses for repairing material handlingequipment at Planet Tohoku following anearthquake (+121 million yen)

- Cancellation regarding an external warehouse fora distribution center (-199 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 (+424 million yen)
Extended building, material handling equipment and others at Planet Tohoku(+193 million yen)

SGA up 491 million yen* For details, see the next page.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

17

TRUSCO NAKAYAMA Investor Relations

D-(2) [Consolidated] Details of selling, general and administrative expenses (SGA)
for the FY ended December 2021
▮ Details of selling, general and administrative expenses (SGA)
FY ended December 2020
Actualresults

No.

1 Salary and bonus
2 Depreciation

3

Freight and packing
expenses

4 Commission fee
5 Welfare expenses
6 Taxes and dues
7 Advertising expenses

8 Supplies expenses

Share in net
sales

12,1076,565

5.7

FY Ended December 2021
Actualresults

Share in net
sales

5.3

3.1

12,159
6,929

6,292

2.9

2,378
2,140
1,349
744
564

1.1

(Unit: million yen, %)YoYChange(amount)

YoY
Change

3.0

+52
+364

+0.4
+5.6

6,782

3.0

+490

+7.8

1.0

0.3

2,321
2,197
1,379
509
472

0.2

-57
+56
+30
-234
-91

-2.4
+2.7
+2.2
-31.5
-16.3

1.0
0.6
0.3

1.0
0.6
0.2

9

Traveling expenses andtransportation expenses

485

0.2

472

0.2

-13

-2.8

10

Remuneration paid to
directors

418

0.2

404

0.2

-13

-3.2

11

Communication
expenses

391

0.2

400

0.2

+9

+2.4

12

Leasehold and office
rents

553

0.3

337

0.1

-215

-39.0

0.2
0.1

322
269

0.1

14 Vehicle expenses

347
237

0.1

-24
+32

-7.1
+13.8

15 Entertainment expenses

20

0.0

25

0.0

+5

+25.0

16 Provision for bonuses

15
-8
288

0.0

0.0

-0.0

-0.1

0.1

17
-132
513

0.2

+1
-124
+224

+9.8
ー
+77.7

34,891

16.4

35,383

15.4

+491

+1.4

13 Utilities expenses

17 Promotion expenses
18 Other
Total©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved[Non-consolidated] Key Items( ) YoY change (%)- Buildings and distribution equipment at distribution
centers
Reconstructed building, material handling equipment
and others at Planet South Kanto (+424 million yen)
Extended building, material handling equipment andothers at Planet Tohoku (+193 million yen)

- Impact of growth in shipping volume (+477 million
yen)
Increase in direct shipments to users (+259 million yen)
Note: Fees for direct shipment to users are paid by therequesting client.
=> 2,830,000 shipments (+600,000)[Reference]
Number of chartered vehicles: 188 (unchanged fromthe end of previous fiscal year)
117 vehicles (+7 from the end of previous fiscal year)
for delivery by the Company's employees· Expenses for initial actions related to the core systemrevamp in the previous year (-289 million yen)
· Expenses related to new projects (+201 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 warehouse for a
distribution center (-199 million yen)
- Expenses for repairing material handling equipment
at Planet Tohoku following an earthquake (+121 million
yen)

18

TRUSCO NAKAYAMA Investor Relations

D-(3) [Consolidated] Balance Sheet for the FY ended December 2021
▮ Balance sheet(As of December 31, 2021)
Item(Assets)
Current assets
Cash and deposits
Accounts receivable
Electronically recordedmonetary claims - operating
Merchandise
Other
Allowance for doubtful
accounts
Non-current assets
Property, plant andequipment
Buildings and structures
Machinery, equipment andvehiclesTools, furniture and fixtures
Land
Construction in progress
Intangible assets
Software
Software in progress
Other
Investments and otherassetsInvestment securities▮ Statement of cash flows
Amount Item
(Liabilities)
116,006 Current liabilities
Accounts payable - trade41,469
Short-term borrowings
28,96242,43016,52617,0002,132

Accounts payable - other

3,827

42,627814

Income taxes payable
Provision for bonuses

2,898
17

Other

2,160

-1
107,066

Non-current liabilities

37,971

98,194Long-term borrowings

35,000Long-term guarantee
deposits
Provision for retirement
benefits for directors (and7,988
other officers)
Other
1,743
37,895 Total liabilities
226 (Net assets)
5,403 Shareholders' equity
Capital stock
5,150
Capital surplus
244
Retained earnings
8
50,340

3,468
2,967

Treasury shares
Accumulated othercomprehensive income
Valuation difference on
available-for-sale securities

94
80,402

142,477
5,022
4,711
132,822-78
192

Deferred tax assets for land
revaluation

155

Revaluation reserve for land

-353

Other

321

Foreign currency translation
adjustment-133

Allowance for doubtful
accounts-10©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2021

Cash flows from operating activities

15,06815,926+858

Cash flows from investing activities-8,743-4,596+4,146

Cash flows from financing activities

7,722-2,243-9,965

-33

18

+52

Net increase (decrease) in cash and cash
equivalents

14,0149,105-4,908Cash and cash equivalents at beginning of
period18,33032,344+14,014

Cash and cash equivalents at end of period

32,344

41,449+9,105

Effect of exchange rate change on cash
and cash equivalents

Change151

34

Total net assets
223,072 Liabilities / Total net assets

2020

2,726

Deferred tax assets

Total assets(Million yen)

Million yen
Amount678

Equity ratio: 64.0%

Balance Sheet(i) Inventory value
While increasing the number of items we handle, we adjust the volumeof stock at our distribution centers across the country for individual
items in consideration of regional peculiarities and sales frequency
regarding these items.
(ii) Non-current assets
We practice management with assets. We own distribution centers, thefoundation of our business, a head office building, branches and data
centers as well as trucks for delivery and other vehicles for business
operations.

142,669
223,072

19

TRUSCO NAKAYAMA Investor Relations

D-(4) [Consolidated] Capital expenditures for the FY ended December 2021
▮ Major past and future capital expenditures

Actual capital expenditures for FYE December 31, 2021: 8,799 million yen
2021
2022
ActualExpected
expenditures expenditures

Details of major capital expenditures (Unit: million yen)
Planet Aichi construction, HC East Japan Distribution Center relocation, Planet East Japan
extension, Planet Osaka Second Warehouse extension and others
Purchases for the Osaka Head Office, purchases for the company dormitory, and others
Addition of I-Pack® systems, introduction of picking robots to AutoStore, introduction ofPlanet Saitama
autonomous mobile robots (AMRs) and others
Facilities
Other
Introduction and addition of different equipment to distribution centers, stock centers and others
Renovation of internal and external websites, including Sterra, Orange Commerce and attendance management
systems and renovation of other systems
IT systems
Development of Cross as a new e-commerce site, strengthening of distribution network, AI development for
demand forecast and others
Annual capital expenditures
Land andbuildings

Distribution
centers
Other▮ Change in capital expenditures

197
171
144
17
19

39

333

148

296

758

3,950

8,799

8,209

Digitalization

39

Land andbuildings

87
7
7

123

59

96

Non-consolidated

588

35

35

2018

-

Facilities

2019

2020

Capital expenditures73- 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.

2021

For FYE December 31, 2022, depreciation of approx. 6,800 million yen(down 70 million yen year on year) is planned.

5
15
2017

5,721

3,630

(Unit: 100 million yen)

80
107

1,584

Consolidated©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations20

D-(5) Major ongoing capital expenditures (1)▮ Increase in distribution capacity of Planet Saitama
1. Adding one line with the I-Pack® automated high-speed packaging system=> A line has been added with the system that can pack small items that are inhigh demand.
Shipping capacity: 720 cs/h per line, equivalent to approx. 24 workers
Actual expenditures for the 59th business year: Approx. 270 million yen
I-Pack introduced to: a total of six lines, namely three at Planet Saitama andone at Planet Tohoku, Planet Tokai and Planet Osaka each

2. Introducing a palletizing robot=> It is a robot that performs loading and unloading processes. It is used mainly
for sorting items packed by the I-Pack® system to improve accuracy and work
quality.
Sorting capacity: 300 items per hourNumber of unit introduced: 1
Expected expenditures for the 60th business year: Approx. 100 million
yen

3. Introducing automated mobile robots (AMRs)=> They are used at the time of conveying pallets after a particularly burdensome
work of shipping large items or a large number of items to help reduce laborand work man-hours.
Straight running speed: 5.8 km/hNumber of units introduced: 11
Expected expenditures for the 60th business year: Approx. 150 millionyen©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

21

TRUSCO NAKAYAMA Investor Relations

D-(6) Major ongoing capital expenditures (2)▮ Plans for construction, extension and relocation of distribution centers and company buildings

1. Construction of Planet Aichi▮ Location: Kita-Nagoya-shi, Aichi
Prefecture(Land readjustment project site in theWest of Okimura in Kita-Nagoya)▮ Site area: 12,595 tsubo▮ Expenditures until the 60th business year:
Approx. 3,410 million yen▮ Monthly land rent: Approx. 5.7 million yen▮ Total expenditure: Approx. 20,000 million
yen (being planned)

Simulations are currently underway todetermine the layout of logistics
equipment on the acquired land for
maximizing efficiency in an effort to
optimize the inside of the warehouse.

2. Relocation of HC East Japan
Distribution Center▮ Location: Fukujimashinden, Sanjo-shi,
Niigata Prefecture▮ Site area: 7,958 tsubo▮ Expenditures until the 60th business year:
Approx. 380 million yen▮ Total expenditure: Approx. 5,000 million
yen (being planned)

After increasing inventories, theexisting facility of the HC East Japan
Distribution Center became
insufficient in size. It is therefore
relocated to the neighboring site. The
new HC East Japan Distribution
Center will hold inventories of not
only goods for general hardware
mass discounters but also items
supplied from overseas by taking
advantage of its location alongside
the sea.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

3. Extension at Planet East Kanto▮ Location: Matsudo-shi, Chiba Prefecture(At the location of the existing Planet
South Kanto)▮ Extension area: 1,821 tsubo▮ Expenditures until the 60th business year:
Approx. 1,300 million yen

At the site adjacent to the existing
Planet East Kanto, a new facility forstoring inventories is added. In theextended part, an automated pallet
warehouse will be introduced tohouse approximately 4,600 pallets.

22

TRUSCO NAKAYAMA Investor Relations

E-(1) Management plan for the 60th business year
(Unit: million yen, %)令和3年（2021）
Actualresults for FYE
December
2021
12月期 31,実績

令和4年（2022）
Plan for FYE
December31, 2022*
12月期 計画※

Share (%)

構成比
（％）

前年比
Year-on-yearchange
(%)
（％）

－

－
(＋7.3)

229,342

243,500

Gross profit
売上総利益48,27551,72021.2－

販売費及び一般管理費
administrative expenses (SGA)

Selling, general and

35,38337,47015.4－(depreciation included in SGA)
（うち、減価償却費）

6,929

6,853

2.8

－

Operating income
営業利益12,891

14,2505.9－

Ordinary income
経常利益

13,572

14,600

6.0－

Profit attributable to owners of
親株主に帰属する
parent
当期純利益

11,603

9,960

4.1

－

35円50銭38円00銭Net sales
売上高(before application of the Revenue(収益認識基準適用前)
Recognition Standard)

Dividend per share
1株当たり配当金(246,169)－－- Because the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. will be applied from the beginning of fiscal year ending
December 31, 2022, the above consolidated financial forecasts represent figures after applying the Accounting Standard for Revenue Recognition.
For this reason, percentage changes from the previous fiscal year and from the same quarter in the previous fiscal year are not stated.
- Without the application of the accounting standard in question, the planned consolidated net sales figure for the 60th business year (FYE December
31, 2022) is 246,169 million yen (higher by 7.3% than for the previous fiscal year).
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.
TRUSCO NAKAYAMA Investor Relations©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved23

E-(2) [Consolidated] Management plan by segment for the 60th business year

▮ Management plan by segment(Unit: million yen, %)Actualresults for FYE
令和3年（2021）
December
2021
12月期 31,
実績
Factory route
ファクトリールート
e-business routeｅビジネスルート
Home center route
ホームセンタールート
Overseas route
海外ルート

Total
合計

164,605
44,66818,373
1,694
229,342

Plan for FYE
令和4年（2022）
December31, 2022*
12月期 計画※

171,782
50,097
19,4552,164
243,500

前年比
Year-on-yearchange
(%)
（％）
ー
ー
ー
ー
ー

Because the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. will beapplied from the beginning of fiscal year ending December 31, 2022, the above consolidated financial
forecasts represent figures after applying the Accounting Standard for Revenue Recognition. For thisreason, percentage changes from the previous fiscal year and from the same quarter in the previous
fiscal year are not stated.

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.
TRUSCO NAKAYAMA Investor Relations©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved24E-(3) [Consolidated] Selling, general and administrative expenses (SGA)
for 2022
Forecast for the 60th business year: 37,470 million yen*
Principal details are as follows.

( ) YoY change

Factors for increase(1) Freight and packing expenses: 7,231 million yen (Up 6.6% or 449 million yen)(i) Shipment volume is forecasted to rise following a sales increase.
(ii) Shipment volume is expected to increase after stepping up efforts for direct shipments to users in separate
segments.
* The fares for direct shipment to users are at the expense of customers.
(2) Commission fee: 2,593 million yen (Up 11.7% or 271 million yen)(i) Construction of intranet (introduction of Office 365)(ii) Strengthening of core systems(3) Salary and bonus: 12,375 million yen (Up 1.8% or 215 million yen)(i) Eighty-three new employees have joined the Company for FYE December 31, 2022, up 40 from the previous
year.
(ii) Salary will rise due to employment of part-time workers in the previous fiscal year although the number of
employees is expected to remain flat.
Factors for decrease
Depreciation: 6,853 million yen (Down 1.1% or 76 million yen)
A slight decrease is expected due to limited large investments in the previous fiscal year.
Because the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. will be applied from the beginningof fiscal year ending December 31, 2022, the above consolidated financial forecasts represent figures after applying the
Accounting Standard for Revenue Recognition. For this reason, percentage changes from the previous fiscal year and fromthe same quarter in the previous fiscal year are not stated.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved25

F-(1) 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(4)Environmental actions through business activities

Become a platform operator supporting manufacturing andoptimize the supply chain to establish sustainable pro tool
distribution that is both human and environmentally friendly.

Work to reduce the environmental impact of the Company's
business activities, PB products and also the users of theCompany's products to help the Japanese manufacturingindustry with its environmental activities.

(2)Planning and development of products that respondto diversifying needs(5)Contribution to stakeholders and local
communities

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 andincrease productivity and competitiveness.

Cherish the relationships with stakeholders through support forpeople with disabilities and communication with local
communities and society through sponsorships andadvertising.

(3)Development of environments and personnel toenable them to fully display their personal abilities(6)Governance based on a stance of choosing theproper actions

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

Improve the fairness and transparency of management andimplement swift and appropriate decision-making to conductbusiness activities that conform to laws and social norms.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

26

F-(2) TRUSCO's sustainability (2)Environmental actions through business activities
The Company works to reduce the environmental impact of its businessactivities, plans and develops environmentally friendly private brand goods andactively implements recycle-reuse-returnable practices. It strives to reduce theenvironmental impact of the overall supply chain, involving not only itself but also
users of its products, with the aim of establishing sustainable distribution. Thisinitiative is called TRUSCO Shared Value (TSV) inside the Company with a viewto raising awareness and recognition among individual employees.

▮ Repair workshop "Naojiro"
Generally, it is common that who you should
ask to repair a product varies depending on
the category of the product. Naojiro is a onestop gateway to repair services. Delivery
drivers and sales personnel collect products
to be repaired as needed. This means thatclients are not required to pack items or pay
freight fees. This service is based on fixedcost distribution that ensures both the reuseof pro tools and client efficiency. In January2022, the Company will relaunch its Naojiro
section to popularize and enhance thisservice.

▮ Distribution with no waste emissions
The Company puts ordered goods in foldable containers andfills 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 (million yen)

1,723 1,845 1,708

1,549 1,596▲ TRUSCO Return Cushion for 20 liters (yellow) (TRC-20L-Y)▮ Environmental features of TRUSCO products

2017

2018

2019

2020

2021

▮ TRUSCO power generation installations (at 19 locations in Japan)
The installation of private power generation systems is in progress on the roofs andwalls of distribution center, branch office and head office buildings. The Company willcontinue installing solar panels on newly constructed company buildings to increase its
renewable energy power capacity to 3,500 kW by 2025.
▮ Annual total power generation: 2,604,757 kWh▮ Renewable energy power self-sufficiency rate: 16.5%©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

In product planning and development under its TRUSCO
brand, the Company determines environmental standards
such as energy efficiency, waste reduction and long usefulproduct lifespans. Its product development considers theenvironment in all phases, including product design, use anddisposal. For existing goods, the Company revises containers
and packages. Reducing the volumes of packages anddiscontinuing sets of a dozen items to increase carrying
efficiency and to cut resources for containers and packages.
TRUSCO Keyless Drill Chuck
Models: TDC-250 and others

The package has been changed from a blister
pack to a plastic-free paper box. That has
reduced CO2 emissions associated with the
manufacturing of packages by around 5% andthose associated with package disposals byaround 50%.

Old

New

Example of revision to the
package of TRUSCO goods

TRUSCO NAKAYAMA Investor Relations27

F-(3) TRUSCO Skill Matrix (announced on December 17, 2021)
Integrated with the conventional evaluation system, the Open Judge System, to create an original
evaluation system
About TRUSCO Skill Matrix
The Company understands that the President's mostimportant skill is to devise strategies, measures andsystems. The Company discloses the strategies,
measures and systems devised by its President as abusiness manager aiming for original management.
Firmly established in the Company through years of
implementation, the Open Judge System is used inaddition to evaluations of whether or not individual
Directors, including Senior Executive Officers andAuditors, have 11 different skills on the basis of theirexperience and achievements. That increases thefairness and objectiveness of evaluations. With
respect to the evaluation of the President under the
OJS, the results of voting by shareholders attendingat the Shareholders' Meeting is disclosed as a key
evaluation indicator (President OJS).

Open Judge System (OJS)
It is a mutual personnel evaluation system for all
employees. It has been introduced for the purpose of
conducting evaluations with a high level of fairness
and objectiveness.
For details, go to:http://www.trusco.co.jp/csr/skillmatrix.html©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations28

Reference 3: [Consolidated] Quarterly business performance for the FY ended December 2021 (Quarterly)▮ Fiscal year ended December 31, 2021 [Quarterly](Unit: million yen, %)1st Quarter (+1 day)Budget /Actual results

Share

4th Quarter (±0 day)Budget /YoY Change
Actual results

Share

YoY Change

Budget58,121

100.0

+1.1

55,949

100.0

+9.9

54,981

100.0

+9.2

58,811

100.0

+7.6

58,246

100.0

+1.3

55,642

100.0

+9.3

54,819

100.0

+8.9

60,634

100.0

+10.9

Budget12,51621.5-0.3

12,474

22.3

+10.0

11,664

21.2

+10.1

12,555

21.3

+10.0

Actual results

12,54321.5-0.1

12,09921.7+6.7

11,111

20.3+4.9

12,520

20.6+9.7

Budget

8,811

15.2

-4.4

8,899

15.9

+4.5

8,790

16.0

+2.0

8,845

15.0

+3.6

Actual results

8,752

15.0

-5.1

8,664

15.6

+1.8

8,877

16.2

+3.0

9,088

15.0

+6.5

Budget

3,705

6.4

+11.0

3,575

6.4

+26.6

2,874

5.2

+45.4

3,710

6.3

+28.8

Actual results

3,790

6.5

+13.6

3,434

6.2

+21.6

2,234

4.1

+13.0

3,431

5.7

+19.2

Budget

3,943

6.8

+16.5

3,807

6.8

+26.3

2,958

5.4

+43.7

3,805

6.5

+22.8

Actual results

3,995

6.9

+18.0

3,695

6.6

+22.6

2,322

4.2

+12.8

3,558

5.9

+14.8

Budget

2,725

4.7

+17.4

2,615

4.7

+29.9

2,034

3.7

+47.3

4,489

7.6

+95.8

Actual results

2,712

4.7

+16.9

2,524

4.5

+25.4

2,242

4.1

+62.5

4,123

6.8

+79.8

Gross profit

Operating income

Ordinary income
Quarterly profit
attributable to ownersof parent

Share

3rd Quarter (±0 day)Budget /YoY Change
Actual results

Actual results

Net sales

Selling, general andadministrative
expenses (SGA)Share

2nd Quarter (±0 day)Budget /YoY Change
Actual results* The budget figures for the first and second quarters represent the budget after the revision announced on March 15, 2021 and the figures forthe fourth quarter are the budget after the revision announced on November 1, 2021.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

29

TRUSCO NAKAYAMA Investor Relations

Reference 4: [Consolidated] Quarterly business performance for the FY ended December 2021 (Cumulative)▮ Fiscal year ended December 31, 2021 [Cumulative](Unit: million yen, %)1st Quarter (+1 day)Budget /Actual results

Share

Full year (+1 day)Budget /YoY Change
Actual results

Share

YoY Change

Budget58,121

100.0

+1.1

114,070

100.0

+5.2

169,051

100.0

+6.5

227,520

100.0

+6.6

58,246

100.0

+1.3

113,888

100.0

+5.1

168,708

100.0

+6.3

229,342

100.0

+7.5

Budget12,51621.5-0.3

24,99021.9+4.6

36,65421.7+6.3

48,31021.2+5.2

Actual results

12,54321.5-0.1

24,64321.6+3.1

35,75421.2+3.7

48,27521.0+5.2

Budget

8,811

15.2

-4.4

17,71015.5-0.1

26,50015.7+0.6

35,14015.4+0.7

Actual results

8,752

15.0

-5.1

17,41715.3-1.8

26,29415.6-0.2

35,383

15.4+1.4

Budget

3,705

6.4

+11.0

7,280

6.4

+18.2

10,1546.0+24.8

13,1705.8+19.5

Actual results

3,790

6.5

+13.6

7,225

6.3

+17.3

9,459

5.6

+16.2

12,891

5.6+17.0

Budget

3,943

6.8

+16.5

7,750

6.8

+21.1

10,7086.3+26.6

13,820

6.1+19.6

Actual results

3,995

6.9

+18.0

7,691

6.8

+20.2

10,014

5.9+18.4

13,572

5.9+17.4

Budget

2,725

4.7

+17.4

5,340

4.7

+23.2

7,374

4.4

+29.0

11,9705.3+49.5

Actual results

2,712

4.7

+16.9

5,237

4.6

+20.8

7,480

4.4

+30.9

11,6035.1+44.9

Gross profit

Operating income

Ordinary income
Quarterly profit
attributable to ownersof parent

Share

3rd Quarter (+1 day)Budget /YoY Change
Actual results

Actual results

Net sales

Selling, general andadministrative
expenses (SGA)Share

2nd Quarter (+1 day)Budget /YoY Change
Actual results* The budget figures for the first and second quarters represent the budget after the revision announced on March 15, 2021 and the figures forthe fourth quarter are the budget after the revision announced on November 1, 2021.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

30

TRUSCO NAKAYAMA Investor Relations

Reference 5: [Consolidated] Quarterly budgets for FYE December 31, 2022 (Quarterly / Cumulative)▮ Fiscal year ending December 31, 2022 [Quarterly]
1st Quarter (-1 day)Budget(Unit: million yen, %)3rd Quarter (+1 day)2nd Quarter (±0 day)Share

YoY Change

BudgetShare

YoY Change

Budget

4th Quarter (-1 day)Share

YoY Change

BudgetShare

YoY Change

Net sales

61,130100.0-59,543100.0-

59,442100.0-

63,385100.0-

Gross profit

12,652

20.7-

12,602

21.2-

12,532

21.1-

13,93422.0-

Selling, general andadministrative expenses
(SGA)

9,257

15.1

-

9,281

15.6

-

9,273

15.6

-

9,659

15.2

-

Operating income

3,395

5.6

-

3,321

5.6

-

3,259

5.5

-

4,275

6.7

-

Ordinary income

3,429

5.6

-

3,502

5.9

-

3,287

5.5

-

4,382

6.9

-

Quarterly profit attributableto owners of parent

2,334

3.8

-

2,387

4.0

-

2,242

3.8

-

2,987

4.7

-

▮ Fiscal year ending December 31, 2022 [Cumulative]
1st Quarter (-1 day)Budget(Unit: million yen, %)2nd Quarter (-1 day)

4th Quarter (-1 day)3rd Quarter (±0 day)Share

YoY Change

BudgetShare

YoY Change

BudgetShare

YoY Change

BudgetShare

YoY Change

Net sales

61,130100.0-120,673100.0-

180,115100.0-

243,500

100.0-

Gross profit

12,652

20.7-

25,25420.9-

37,78621.0-

51,72021.2-

Selling, general andadministrative expenses
(SGA)

9,257

15.1

-

18,53815.4-

27,811

15.4-

37,47015.4-

Operating income

3,395

5.6

-

6,716

5.6

-

9,975

5.5

-

14,2505.9-

Ordinary income

3,429

5.6

-

6,931

5.7

-

10,218

5.7-

14,600

6.0-

Quarterly profit attributable toowners of parent

2,334

3.8

-

4,721

3.9

-

6,963

3.9

-

9,950

4.1

-

The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) will apply from the beginning of FYE December 31, 2022. The
consolidated business performance forecast stated above represents figures after application of the aforesaid accounting standard. For thisreason, changes in percent from the previous fiscal year and from the same quarter in the previous fiscal year are not stated.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

31

TRUSCO NAKAYAMA Investor Relations

Reference 6: Company data
▮ Number of employees [Consolidated] as of the end of December 2021
Executives
Executive officers
CareerArea
SupportSpecialist
Logistics
Contract employees
Overseas subsidiaries
Seconded to health insurance
association
Seconded to Nakayama Visually
Impaired Welfare Foundation
Full-time employees subtotal(including executives)
Part-time employees
Total

Females
1
0
152
279
23
15
79
1
20

Males
9
2
421
302
2
13
264
33
24

Total
10
2
573
581
25
28
343
34
44

YoY Change
-2
±0
-39
+8
-3
-1
-4
-3
±0

2

0

2

±0

0

0

0

±0

571

1,061

1,632

-42

929
1,501

335
1,405

1,264
2,906

+164
+120

▮ Average age and annual income
Average age (years)
Females2017[Non-consolidated]

Females Males
510
1004
No. ofemployees
1,514
59
67
No. of incoming
employees
126
18
18
No. of outgoing
employees
36
3.4
1.8
Turnover ratio
2.3

32.8

43.2

39.6

724

596

456

615

32.1

41.9

38.4

721

601

461

619

2019

31.3

42

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

2019
[Consolidated]

2020[Consolidated]

2021[Consolidated]

557

585

589

571

1085
1,674
41
46
87
37
33
70
5.9
3.0
4.0

2018

2019

▮ Number of bases [Consolidated]

1061
1,632
26
25
46
45
45
90
7.3
4.1
5.2

2020

2021
Inventory disposal (million yen)Amount irrecoverable
Unit: 10 thousand yen

0

4

0

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

As of the end of December 2021

Head offices2

Branches

61

Distribution centers

17

Overseas bases

3

Stock centers

10

Total

93

▮ [Non-consolidated]
Changes in inventory disposal and inventories▮ Amount irrecoverable due to bankruptcy
2017

Entirecompany

2020* Excluding part-time employees

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

Logistics

2021

2018
[Non-consolidated]

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

Area

* 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 sameyear.
* Consolidated accounting has been applied to the fiscal year ended Dec. 2019 andlater 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 areon a non-consolidated basis.

Share of female employees: 35.0%, Number of female sales staff members: 59, Females in career-track positions account for
26.5% of all female employees.
* 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)

EntireMales
Careercompany

0

275

2017

2018

2019

2020

2021

41

39

42

50

55

Inventories (100 million yen)

318

370

427

406

426

Disposal rate (%)

0.13

0.11

0.10

0.12

0.13

32

TRUSCO NAKAYAMA Investor Relations