The 60th Business YearBusiness Performance Data Analysis
FYE December 31, 2022
Third Quarter

Published by:

Securities code: 9830

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

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TRUSCO NAKAYAMA Investor Relations

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

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

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

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

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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TRUSCO NAKAYAMA Investor Relations

Company overview
Founding

May 15, 1959

Representative

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

Head offices

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

Number of
offices

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

Capital stock

5,022,370,000 yen

Listed stock
exchange

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

Number of
employees

2,987 [Consolidated]

Credit rating

A (Rating and Investment Information, Inc.)

Line ofbusiness

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

3©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

Customers
Suppliers

5,569 companies

Users
∞

3,187 companies(+221 companies)

Factory route

Machine tool
dealers,
dealers of welding
materials, etc.

e-business
route

Mainly internet
order companies

Home center
route

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

Overseas
route

Mainly overseas
dealers

Domestic
suppliers

2,863 companies(+201 companies)

Overseas
suppliers

30 countries
324 companies

Manufacturers, construction
companies, etc.

Manufacturers, general
consumers, etc.

Businesses conducting
outdoor work, general
consumers, etc.

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

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Overseas manufacturers, etc.

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TRUSCO NAKAYAMA Investor Relations

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

TRUSCO NAKAYAMA Investor Relations

A-1. Accounting highlights▮ Performance from the first quarter to third quarter
・ Opportunity loss was minimized by continuously expanding inventories amid
rising resource prices and increasing shortages of products.
・ The user direct delivery service was enhanced, and orders were consolidated.
・ Selling, general and administrative expenses increased due to the payment ofapproximately 500 million yen in temporary bonuses to support the livelihoodsof employees▮ Main items that increased in selling, general and administrative expenses (SGA)
Year-on-year increase of 803 million yen (+9.9%)

Employee salaries①
and bonuses

Payment of livelihood support bonuses + 512 million yen, part-time salaries and bonuses +222 million yen (excluding livelihood support bonuses)
Reduction of overtime pay for employees by improving work efficiency, etc. △36 million yen

Year-on-year increase of 440 million yen (+27.2%)②

Commission fee
Freight andpacking expenses

Year-on-year increase of 631 million yen (+12.7%)③④

Other increases

Utilities expenses: Soaring electricity expenses +94 million yen, Transportation expenses:
Business trip expenses +60 million yen

HACOBUne scheme + 141 million yen, maintenance and inspection fee + 82 million yen, etc.
Increase in number of shipments + 484 million yen
to users + 262 million yen

Of which, increase in direct shipments▮ Outlook for the fourth quarter・ Costs will continue to be reduced throughout the company
・ Efforts will be made to achieve budget goals, including increasing sales, without
revising the full-year budget©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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TRUSCO NAKAYAMA Investor Relations

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

FYE December 31, 2022
Full Year

ChangeYoY change from budget(%)

BudgetYear-onyear change

Actual results

Rate

Actual results

Rate

226,833 million yen－

180,924 million yen

－

+8.4%

+0.4%

243,500 million yen+7.3%

Gross profit

47,670 million yen

21.0%

37,755 million yen

20.9%

+6.9%

△0.1%

51,720 million yen+8.5%

Selling, general andadministrative
expenses (SGA)

34,673 million yen

15.3%

28,621 million yen

15.8%+11.1%+2.9%

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

6,929 million yen

3.1%

5,019 million yen

2.8%

△2.4%

△0.5%

6,853 million yen△1.1%

Operating income

12,997 million yen

5.7%

9,134 million yen

5.0%

△4.5%

△8.4%

14,250 million yen+9.6%

Ordinary income

13,555 million yen

6.0%

9,400 million yen

5.2%

△6.3%

△8.0%

14,600 million yen+7.7%

Current (quarterly)
profit attributableto owners of parent

11,596 million yen

5.1%

6,470 million yen

3.6%△13.7%△7.1%

9,960 million yen△14.1%

Current (quarterly)
net income per
share(175.86 yen)

PB salesCapitalexpenditures

43,445 million yen
8,799 million yen－

98.12 yen－－－

151.04 yen

19.2%

34,114 million yen

18.9%

+5.0%

△2.2%

－

3,649 million yen

－

－

－

46,626 million yen
4,338 million yen

－
+7.3%
－

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

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TRUSCO NAKAYAMA Investor Relations

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

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

23,67024,00021,671
22,00020,00019,35919,36918,11920,124
18,493

20,847
19,26820,484

21,491

21,41018,00016,00014,000+13.7

12,00010,000

+11.6

+11.2

+9.1

+8.0

8,000

+9.8

+4.5

6,000
4,000

+10.0
Sales per month (million yen)

+0.9

Year-on-year change (%)

2,000
0

January

February

March

April

May

June

July

AugustSeptember

October

Actual results

November

December

BudgetJanuary

February

March

April

May

June

July

AugustSeptember

OctoberNumber of businessdays (days)

18

18

22

20

19

22

20

22

20

20

20

22

243

Year-on-year change(days)

±0

±0

△1

△1

+1

±0

±0

+3

±0

△1

±0

+2

+3

Sales per day(million yen)

1,00６

1,076

1,075

967

973

985

1,006

875

1,042

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

November December

Total

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TRUSCO NAKAYAMA Investor Relations

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

▮ e-business route▮ Factory route

4,830

3,825

4,602
4,079

4,039

4,335
4,025

3,876

4,461
4,273 4,270 4,347

16,786+24.1

15,245
15,10014,297
14,371

15,095
13,63013,952

13,386
12,62012,700

+20.3
+19.1
+16.2

+17.6 +15.8

+16.4

+12.6

13,097

Net sales (million yen)

+7.1

January

February

March

Year-on-year change
(%)

April

May

June

July

AugustSeptember

October

Actual results
+ 9.3

+ 8.2

+ 6.6

1,860

+ 5.8

+ 4.4

1,741
1,448

+ 1.1

+ 5.1

1,834

1,944 1,995

1,770

1,726

1,672

Net sales (million yen)
Year-on-year change(%)+ 12.3

1,695 1,663

1,548+ 26.6△…

December

Budget▮ Home center route+ 9.1

November+ 13.6 + 11.1 + 13.0

+ 34.1+ 26.7+ 20.2+ 12.0Net sales (million yen)
Year-on-year change(%)

January

February

March

April

May

June

July

AugustSeptember

OctoberNovember

DecemberJanuary

Actual results

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

February

March

Budget

April

May

June

July

AugustSeptember

October

Actual results

November

BudgetJanuary

February

March

April

May

June

July

AugustSeptembe
r

18

18

22

20

19

22

20

22

20

20

20

22

243

±0

±0

△1

△1

+1

±0

±0

+3

±0

△1

±0

+2

+3

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

October

DecemberNovember December

Total

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TRUSCO NAKAYAMA Investor Relations

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

TRUSCO NAKAYAMA Investor Relations

B-1. [Consolidated] Business performance by sales routeFYE December 31, 2021
GrossprofitmarginNet sales

Share

Actualresults

Factory route 162,379 million yen 71.6%

e-business
route

FYE December 31, 2022
Full Year Budget

Third Quarter
Gross profit
marginNet sales
YoYchangeBudget change
from budget

Changefrom
Actualbudget results(%)

YoYchangeBudgetYoYchange

Share

20.5%

125,641 million yen

69.5%+5.0% 127,138 million yen △1,496 million yen

△1.2%

20.7%

+0.1pt 171,782 million yen+5.8%

44,393 million yen 19.6%

23.5%

37,888 million yen

20.9%+16.2%

37,018 million yen+869 million yen

+2.3%

22.1%

△1.7pt50,097 million yen+12.8%

Home center
route

18,366 million yen

8.1%

18.6%

15,816 million yen

8.7%+18.7%

14,371 million yen +1,445 million yen+10.1%

17.3%△1.5pt19,455 million yen+5.9%

Overseas
route1,694 million yen

0.7%

33.0%

1,577 million yen

0.9%+28.4%

1,586 million yen△8 million yen

△0.6%

37.0%

+5.1pt2,164 million yen+27.7%

226,833 million yen

100%

21.0%

180,924 million yen

100%

+8.4%

180,115 million yen+809 million yen

+0.4%

20.9%

△0.3pt 243,500 million yen

+7.3%

Total

BudgetNet sales

Actual results

Sales route

Actual results

FYE December 31, 2022

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

11©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

FYE December 31, 2022
Third Quarter

Gross profit
marginNet sales
Sales route

Net sales

Gross profit margin

Actual results

Share

Actualresults

Actual results

Share

YoY
changeActualresults

YoYchangeMachine tool dealers

60,667 million yen

50.7%

20.0%

64,158 million yen

51.1%

+5.8%

20.9%

+0.9ptDealers in welding materials

16,877 million yen

14.1%

21.5%

17,731 million yen

14.1%

+5.1%

20.4%

△1.1pt(Physical chemical, conductor, packaging
material dealers, etc.)

19,960 million yen

16.7%

20.5%

20,658 million yen

16.4%

+3.5%

20.0%

△0.5ptConstruction related

22,199 million yen

18.5%

21.6%

23,092 million yen

18.4%

+4.0%

21.2%

△0.4ptFactory route total

119,704 million yen

100.0%

20.6%

125,641 million yen

100.0%

+5.0%

20.7%

+0.1ptOther manufacturing related▮ Sales by region▮ Factory route: Up 5.0% year on year

2021 3QF route net sales (million yen)2022 3QF route net sales (million yen)

28,942(+3.6%)

27,932( ) YoY change

22,923(+4.1%)

17,781 22,014(+5.7%)

13,343(+5.2%)

12,68013,671

16,821

11,889(+5.2%)(+6.2%)

12,088(+7.0%)

12,997

11,296

11,1965,000(+4.9%)

4,765
Hokkaido andTohokuKita-Kanto andShinshuTokyo
Metropolitan

Hokuriku

Tokai

Kinki

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Chugoku andShikoku

KyushuOur customers felt the convenience ofour products, logistics, and systems, andby fulfilling their request for the
consolidation of commercial distribution
channels, we were able to increase oursales base.
We implemented business activities that
also help to reduce the environmental
burden, such as strengthening the "MRO
stocker," which enables productprocurement at the factory at any time,and enhancing the “user direct delivery
service.”

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TRUSCO NAKAYAMA Investor Relations

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

FYE December 31, 2021
Third Quarter
GrossprofitmarginNet sales
Sales route

Actualresults

25,450 million yen

78.1%

22.8%

29,465 million yen

77.8%+15.8%

21.0%△1.8pt7,150 million yen

21.9%

27.4%

8,423 million yen

22.2%+17.8%

26.2%△1.2pt32,600 million yen

100.0%

23.8%

37,888 million yen

100.0%+16.2%

22.1%△1.7ptCompanies participating in
Orange Commerce(Trusco’s electronic central
purchasing system), MRO Stocker

e-business route total

Gross profit margin

Share

Actual results
Mail order companies

Net sales
Actual results

Share

YoY change

Actualresults

YoY change▮ e-business route: Up 16.2% year on year
By leveraging our product database of approximately 2.98 million items and our logistics system, we havestrengthened our customers' system coordination, and have promoted the consolidation of commercial distribution
channels with our company at each company. In addition, the number of orders received by our company has
increased significantly due to the "user direct delivery service" that simplifies the logistics processes to meet theneeds of each Internet/mail order company, and improves convenience by shortening delivery times.

▮ Sales to mail order companies: Sales ratio by industry

MRO mail ordercompanies
41.2%
MonotaRO, Misumi, etc.

Comprehensive mailorder companies
19.4%

Machine tool dealers4.1%

Mail order companies ofhome electrical appliances
8.7%

Stationery mail ordercompanies
12.0%

Amazon, etc.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Dealers of physical chemical
and medical devices
2.2%

Askul, etc.

Other mail order companies
6.1%

Hardware retailers2.2%

Other
2.8%

Tubing dealers1.3%

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TRUSCO NAKAYAMA Investor Relations

B-1. [Consolidated] Business performance by sales route:
Home center route▮ Sales by industry
FYE December 31, 2022
Third Quarter

FYE December 31, 2021
Third Quarter

Home center route

Net sales

Gross profit
marginActual results

Actualresults

13,321 million yen

Net sales
Actual results

18.8%

15,816 million yen

Gross profit margin
Actualresults

YoY change+18.7%

17.3%

YoY change△1.5pt▮ Change in sales earned via home center route
Full year budget+25.0▮ Home center route: Up 18.7% year on
19,455 million yen

Unit: million yen, %year

18,373

20 ,0 00

16,992
15 ,0 00

13,466

14,702+15.6

10 ,0 00

+8.6

5,00 0+9.2

We consolidated commercial distribution channels and15,816collaborative efforts between our stores and EC site. In
addition, we also saw an increase in sales at pro-tool
shops, which are dealers that target professional+15.0craftspeople and factory workers who have a highYoY change
affinity with our company.
+18.7%
Utilizing the approximately 2.98 million items we havefor sale and approximately 540,000 items we have in+10.0stock for instant delivery, we expect to continue
expanding sales by enhancing the product lineup in our+8.1
stores and EC site.

Year on year (%)

+5.0

0

2018

2019

2020

+20.0acquired a new right to supply products through

2021

2022
3Q

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

What are pro-tool shops?

Pro-tool shops refer to dealers specializing intools for professional craftspeople and factory+0.0 workers. They are so compatible with our
products that sales to them are rising.

14

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

TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITED

Full year
budgetThird quarter performance
YoYchangeFull year
budgetThird quarter performance

Full year
budgetThird quarter performance

AmountRate

YoYchangeYoYchangeAmountRate

YoYchangeYoYchange+7.2%

628 million yen－+18.9%+26.1%

358 million yen－+59.7%+20.8%

+6.5%

+8.4%

153 million yen

24.4%+23.2%+32.1%

104 million yen

29.2%+86.2%+29.7%

15.7%+11.1%+8.1%

121 million yen

19.4%+21.1%+16.8%

114 million yen

32.0%+17.3%+3.7%

4,959 million yen

2.7%

△2.6%

△1.2%

18 million yen

2.9%+15.4%+16.0%

41 million yen

11.6%+17.4%+1.6%

Operating income

9,061 million yen

5.0%

△5.6%

+9.4%

31 million yen

5.0%+32.1%+124.2%△10 million yen

－

－

－

Ordinary income

9,388 million yen

5.2%

△6.6%

+7.4%

32 million yen

5.2%+36.8%+120.6%-0 million yen

－

－

－

Net income

6,455 million yen

3.6%△14.1%△14.4%

32 million yen

5.2%+36.8%+120.6%-0 million yen

－

－

－

AmountRate

Net sales

180,465 million yen

－

+8.3%

Gross profit

37,445 million yen

20.7%

Selling, generaland administrative
expenses (SGA)

28,384 million yen

Depreciation
included in SGA

YoYchange

TRUSCO NAKAYAMA CORPORATION(INDONESIA) LIMITED▮ [Reference] Non-consolidated business▮ Overseas route: Up 28.4% year

performance in other overseas regions
Net sales
Business performance inother overseas regions(Philippines, China,
South Korea, etc.)

Actualresults
Rate
YoY change

Gross profit

590 million yen 161 million yenー+24.1%

27.3%+22.4%

on year
In Thailand and Indonesia, we haveshortened the delivery lead time byreviewing inventory items, and expanded
the sales area through transactions withnew customers of local companies.
With regards to sales to other overseas
regions, we worked to expand transactions
by opening new accounts with EC
companies mainly in the Asia-Pacificregion.

15©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

Net sales up 13,888 million yen
Rise in demand
for supplies due
to recovery in the
manufacturingindustry, etc.

Rise in demand forequipment due torecovery in capital
expenditure, etc.

+3,364

Decrease in other(including
adjustments)

△432

3Q of
FY 2022

180,465(+8.3%)+10,956
3Q of
FY 2021

166,577

Details[Rise in demand for supplies due to recovery in the manufacturing industry, etc.]+10,956 million yen
・Environmental safety equipment(safety goods, spot air conditioners, etc.):+3,916 million yen
・Work supply (chemical products, etc.):+3,113 million yen
・Hand tools (pneumatic tools, tools for manual work, etc.):+1,669 million yen, etc.
[Rise in demand for equipment due to recovery in capital expenditure, etc.]+3,364 million yen
・Distribution and storage equipment(transportation goods, containers and vessels, etc.):+1,704 million yen
・Construction goods (connection terminals, etc.):+1,660 million yen[Decrease in other]・OA business machinery (neck coolers, etc.):©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved△432 million yen△119 million yen, etc.

16

TRUSCO NAKAYAMA Investor Relations

B-3. [Non-consolidated] Changes in sales by category of goods(Unit: million yen)★: COVID-19 related productsWorkbenches

Connection
terminals

Factoryfans
Waist belt-type
personal fall arrest
systems

Cooling garments

Anti-slip
glovesHarnesslanyards

Power
generators

Coolers★Hand sanitizers★Sterilization andhygiene goods

Box cutters

Manual chain
block★Environment
measuring
instruments★Working gloves

Storage rooms

Truck sheets★Generalpurpose facemasks

★Splashprevention
partitions★Heat andtemperature
measuring
instruments

Pliers★ CO2 monitors

Sales decrease

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

Safety shoes(JPSA)

Alcoholcheckers

Spot air conditioners
and cooling fans

Tape

Disasterprevention goods

Harness-type personal
fall arrest systems

Adhesives

Sealing goods

Sales increase017B-4. [Non-consolidated] Sales by category of goods
While there was increased demand for cooling products such as spot air conditioners (large category 6) due to the effects of
the record-breaking heat, as well as increased demand for harness-type systems (large category 6) due to a revision to the lawthat introduces an obligation to wear fall arrest systems, demand for hand sanitizers (large categories 6 and 8) for theprevention of COVID-19 infections began to subside.
(Unit: million yen, %)Category of goods(large category)
1. Cutting tools

2. Production
processing goods

3. Construction
goods

Medium category

Medium category

Trusco's sales

Environmental safety equipment
6. Environmental
safety equipment total

Share

YoY change

Gross profit
margin

5,613

3.1

+6.0

15.8

① Cutting tools

2,767

1.5

-

10.5

㉕ Protective equipment

Drilling and thread cutting②
tools
Production processing goods
total

2,846

1.6

-

20.9

㉖ Safety goods

13,318

7.4

+4.1

15.4

㉗

③ Measurement equipment

6,983

3.9

-

15.0

㉘ Air conditioning goods④ Mechatronics

2,814

1.6

-

15.1

㉙

⑤ Tools for machine tools

1,658

0.9

-

22.7

㉚ Closets and exterior goods⑥ Electronic machinery

1,861

1.0

-

10.7 7. Distribution andDistribution and storage
equipment total

Construction goods total

20,777

11.5

+8.6

21.0

㉛ Loading goods

5,367

3.0

-

17.3

⑦ Hydraulic tools

1,409

0.8

-

10.6

㉜ Conveyors

864

0.5

-

15.2

⑧ Pumps

2,621

1.5

-

16.1

㉝ Transportation goods

7,727

4.3

-

22.2

⑨ Welding equipment

1,665

0.9

-

17.7

㉞ Containers and vessels

3,029

1.7

-

29.0

⑩ Painting and interior goods

1,840

1.0

-

25.3

㉟ Steel shelves

2,991

1.7

-

26.0

1,781

1.0

-

13.0 8. Research

Research management equipment
total

7,558

4.2

+3.2

23.0

⑫ Ladders and stepladders

2,470

1.4

-

22.2

㊱ Tool wagons

706

0.4

-

28.6

Piping and materials ofelectronic equipment
Component, hardware, and⑭building materials

3,346

1.9

-

22.9

㊲

936

0.5

-

31.0

Civil engineering and building
goods

⑬

5. Hand tool

Share

Category of goods(large category)

Cutting tools total⑪

4. Work supply

Trusco's sales

Gross profit
YoY change
marginstorageequipment

management
equipment

Environment improvement
goods
Disaster and crime prevention
goods

Storage and management
goods

33,280

18.4

+13.2

21.8

17,743

9.8

-

22.5

7,617

4.2

-

25.3

1,663

0.9

-

18.2

3,491

1.9

-

13.5

1,218

0.7

-

19.0

1,550

0.9

-

21.4

19,981

11.1

+9.1

22.2

5,640

3.1

-

26.2

㊳ Work benches

1,202

0.7

-

33.5

Work supply total

34,153

18.9

+10.4

21.5

㊴ Stainless goods

1,453

0.8

-

17.8

⑮ Cutting goods

1,084

0.6

-

21.4

3,258

1.8

-

18.0

⑯ Grinding and polishing goods

5,425

3.0

-

23.2 9. Office andResearch and developmentrelated goods
Office and housing facility
equipment total

15,843

8.8

+2.7

22.8

⑰ Chemical products

17,910

9.9

-

20.5

㊶ Cleaning utensils

4,679

2.6

-

21.4

⑱ Factory miscellaneous goods

3,147

1.7

-

15.3

㊷ Stationery

1,827

1.0

-

18.9

⑲ Packing and binding goods

4,371

2.4

-

29.9

㊸ Office miscellaneous goods

2,351

1.3

-

27.0

⑳ Casters

2,216

1.2

-

17.7

㊹ Electric appliances

2,553

1.4

-

21.8

Hand tool total

29,275

16.2

+6.0

18.8

㊺ OA business machinery

1,408

0.8

-

24.5

㊵

housing facility
equipment

Electric power tools andaccessories
Pneumatic tools and㉒
accessories

7,814

4.3

-

14.1

㊻ Office furniture

2,818

1.6

-

24.3

4,880

2.7

-

17.9

㊼ Interior goods

202

0.1

-

19.9

㉓ Tools for manual work

15,1308.4-

20.5 10. Others㊽ Entire company

662

0.4

+92.2

3.4

1,449

0.8

-

28.5

180,465

100.0

+8.3

20.7

㉑

㉔ Tool boxes

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

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

18

TRUSCO NAKAYAMA Investor Relations

B-5. [Non-consolidated] Sales of private brand (PB) goods▮ Change in sales of PB goods( ) Year-on-year change
43,89043,596（+0.7%）（+8.6%）(Unit: million yen)

Cutting tools 1.5%

Full year budget:
46.6 billion yen

Office andhousingfacility
Research
management equipment
9.7%
equipment
7.8%

43,44541,302（△5.9%）

34,114（+5.2%）

Production
processing goods
3.5%

Construction
goods
8.9%

（+5.0%）

2018

2019

2020

Distribution andstorage equipment
24.8%

2022
2022

2021

３Q

Hand tool
9.6%

Share

20.3%

19.9%

19.4%

19.0%

18.9%

Gross
profitmargin

35.7%

35.8%

36.4%

36.2%

35.6%

▮ Sales by sales route and category of goods
Entire company

Sales route
Share
Categoryof goods

18.9%

Gross profit margin 35.6%
Net sales

YoY change

Factory
Share

Gross profit margin 35.7%
Net sales

Share

Home center
22.2%

Gross profit margin 35.7%

YoY change

Net sales

Environmental
safety equipment
16.7%(Unit: million yen)e-business
19.6%

YoY change

Share

5.0%

Gross profit margin 30.5%
Net sales

YoY change

34,114
518

+5.0%
△0.1%

24,664
381

+3.8%
+2.5%

8,405
78

+7.8%
△9.9%

794
49

+10.9%△4.3%

Production processing
goods

1,206

+3.9%

880

+4.2%

291

+3.2%

13

△1.2%

Construction goods

Hand tool

3,044
5,979
3,274

+10.3%
+3.1%
△2.5%

2,175
4,680
2,330

+9.9%
+2.2%
△1.1%

804
1,189
798

+11.7%
+6.2%
△6.2%

46
59
91

+2.6%
+0.9%
△0.2%

Environmental safety
equipment

5,681

+2.8%

4,193

△0.3%

1,347

+10.6%

127+42.1%

Distribution andstorage equipment
Research
management
equipment
Office and housing
facility equipment

8,459

+9.6%

5,907

+8.5%

2,126

+11.4%

379+14.4%

2,650

+5.0%

1,897

+1.5%

732

+14.8%

4+112.6%

3,298

+5.3%

2,218

+4.6%

1,036

+6.8%

20

△29.1%

1△22.4%

-

-

-

-

1

△22.4%

Total
Cutting tools

Work supply

Other©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Work supply
17.5%

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

19
TRUSCO NAKAYAMA Investor Relations

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

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

TRUSCO NAKAYAMA Investor Relations

* For details on the factors of the changes,
please see page 22.

C-1. [Consolidated] Selling, general andadministrative expenses (SGA)* Regarding the full-year forecast for 2022, items other thansalaries and bonuses, and freight and packing expenses areindicated in the figures for [non-consolidated].

▮ Main items that increased in selling, general and administrative expenses (SGA)FYE December 31,
2021

Account title

Actual results

FYE December 31, 2022
Third Quarter
Actual results

FYE December 31, 2022
Full Year

YoYchangeForecast

Year-onyear change

Salary and bonus

12,159 million yen

8,940 million yen+9.9%

12,375 million yen+1.8%

Commission fee

2,321 million yen

2,060 million yen+27.2%

2,593 million yen+11.7%

Freight and packing expenses

6,782 million yen

5,621 million yen+12.7%

7,231 million yen+6.6%

Utilities expenses

322 million yen

326 million yen+40.8%

320 million yen△0.8%

Traveling expenses andtransportation expenses

472 million yen

410 million yen+17.3%

495 million yen+5.0%

34,673 million yen

28,621 million yen+11.1%

37,470 million yen+8.1%

Total selling, general andadministrative expenses (SGA)▮ Main reductions in selling, general and administrative expenses from the initial budget(July-September)
Account title
Commission fee

Item
Review of various maintenance and inspection fees, etc. (△92 million yen)

Initiative

Advertising expenses

Review of advertising expenses, etc. (△26 million yen)

Promotion expenses

Reduction of publication of various catalogs (△10 million yen)

FutureSalary and bonus

Compared to the same quarter of the previous year, sales per person increased from 18 million yen to 20 million yen(+7.6%) due to improvements in operational efficiency

Commission fee

Review of various maintenance and inspection fees, etc. (△164 million yen)

Conference expenses,
entertainment expenses

Expenses for holding internal and external events (△60 million yen)・ We are expecting a reduction of about 100 million yen from the budget in the third quarter (July-September) and areduction of about 300 million yen from the budget in the fourth quarter (October-December)[Reference] 1-2Q SG&A ratio: 16.1% 3Q SG&A ratio: 15.2%
・ We aim to achieve the full-year budget goals by reducing other items, increasing sales, and negotiating purchasecosts, etc.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

21

TRUSCO NAKAYAMA Investor Relations

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

FY 2021YoY Change(amount)

YoY change

FY 2022 fullyear budget

Full year budget
and YoY change
in performance

Actual results

Share in net
sales

Actual results

Share in net
sales

1 Salary and bonus

12,159

5.4

8,940

4.9

+803

+9.9

12,375+1.8

Freight and packing
2
expenses

6,782

3.0

5,621

3.1

+631

+12.7

7,231

+6.6

3 Depreciation

6,929

3.1

5,019

2.8

△124

△ 2.4

6,853

△ 1.1

4 Commission fee

2,321

1.0

2,060

1.1

+440

+27.2

2,593

+11.7

5 Welfare expense

2,197

1.0

1,769

1.0

+117

+7.1

2,286

+4.1

6 Taxes and dues

1,379

0.6

1,038

0.6

+32

+3.3

1,343

△ 2.6

△ 0.0

504

+2,807.4

+17.3

495

+5.0

No.

17

0.0

942

0.5

Traveling expenses and8transportation expenses

472

0.2

410

0.2

△0
+60

9 Advertising expenses

509

0.2

391

0.2

△10

△ 2.5

546

+7.1

Communication
10
expenses

400

0.2

327

0.2

+28

+9.6

430

+7.3

11 Utilities expenses

322

0.1

326

0.2

+94

+40.8

320

△ 0.8

12 Supplies expenses

472

0.2

323

0.2

△28

△ 8.1

465

△ 1.6

13 Promotion expenses

△ 843

△ 0.4

281

0.2

+856

－

337

－

Leasehold and office
14
rents

337

0.1

270

0.1

+19

+7.8

337

△ 0.1

15 Vehicle expenses

269

0.1

218

0.1

+15

+7.7

260

△ 3.6

Remuneration paid to
directors

404

0.2

213

0.2

△4

△ 1.9

414

+2.4

17 Entertainment expenses

25

0.0

29

0.0

+13

+79.1

99

+289.3

513

0.2

435

0.2

△78

△ 15.2578+12.7

7 Provision for bonuses

16

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

22

TRUSCO NAKAYAMA Investor Relations

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

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

Total assets

Unit: million yen

Unit (million yen)AmountItem
Amount(Liabilities)
51,624
120,361 Current liabilities
Accounts payable - trade
18,48944,291
Short-term borrowings
17,00029,082Long-term borrowings
scheduled to be repaid within
10,000
one year
1,715
Accounts payable – other1,772
44,269
Income taxes payable
893
1,002
△0

106,583

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

97,89446,816 Non-current liabilities
Long-term borrowings
7,141
Provision for retirement
benefits for directors (andother officers)
1,567Long-term guarantee
deposits
38,589Other
1,837
1,941 Total liabilities
4,678 (Net assets)
4,248 Shareholders' equity
Capital stock
430
4,011
3,305
246

Capital surplus

Retained earnings
Treasury shares
Accumulated other155 comprehensive income
Valuation difference on
available-for-sale securities
313

△10

Revaluation reserve for land

Foreign currency translation
adjustment
Total net assets
226,944 Liabilities / Total net assets©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

951
99
2,418
28,01625,000

3Q of
FY 202194
79,641

11,734

9,078△2,655

Cash flows from investing activities△3,496△4,430△933

Cash flows from financing activities△2,242△2,109+132

Effect of exchange rate change on
cash and cash equivalents

8

104

+96

Net increase (decrease) in cash andcash equivalents

6,003

2,643

△3,360Cash and cash equivalents at beginningof period

32,344

41,449+9,105

Cash and cash equivalents at end of
period38,34844,093+5,745

3Q of FY 2022

Change▮ Equity ratio
End of FY 2021
Equity ratio

64.9%+0.9pt

708
571
△353
491
147,303226,94464.0%

End of FY 2020

End of FY 2021

Change(pt)

ROA (Return on Assets)

5.7%

6.3%

+0.6ptROE (Return on Equity)

6.1%

8.4%

+2.3pt▮ Other financial indicators

146,594
5,022
4,711
136,940△79

ChangeCash flows from operating activities

151
2,770

3Q of
FY 2022<Our Approach to ROE>
We believe it is important to expand profits and ensure
long-term, stable increase by making continuous
investments to enhance corporate value. We believe thatROE should increase as a result of our business where weplace importance on improving the convenience of ourcustomers.

23

TRUSCO NAKAYAMA Investor Relations

C-3. [Consolidated] Capital expenditures▮ 60th planned expenditure: approx. 4,329 million yen(Unit: million yen)

Details of major capital expenditures in 2022

Actualexpenditures for
1Q-3Q

Expected
expenditures
for 4Q

780

533

1,651

731

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

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

Buildings

Planet Higashi Kanto 2nd automated pallet warehouse (provisional name) expansion work
(planned total investment: 2,550 million yen)
Sakai Stock Center (Osaka) new construction (planned total investment: 1,870 million yen), etc.

Land
Facilities

400

HC East Japan Distribution Center relocation plan (planned total investment: 8,500 million yen)
Planet Tohoku I-Pack® specification change (planned total investment: 20 million yen)
Installation of Planet Saitama palletizing robot (planned total investment: 100 million yen)

Subtotal

-

197

37

3,028

1,301

4,329

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

197
171
39

35
39

35

Facilities
Systems
Land andbuildings

80
123
96

87

43

7
7

100 million yen

73

13

59

2

5
15
2018

2019

2020

28
2021

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

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

2022 plan24©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

Kitanagoya, Aichi Prefecture(Site of Readjustment Project for the Land West of
Okimura, Kitanagoya)
Site area:
41,633.06 sqm (purchased: 20,271.07 sqm, leased
land: 21,361.98 sqm)
Land rent:
Approximately 5.7 million yen per monthLand price: Approximately 1,400 million yen(purchased land only)
Planned investment for this fiscal year:
Approximately 150 million yen (buildings)
Total investment: Approximately 25,000 million yen (planned)

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

Planet Aichi

Planet Saitama

Site area

41,634 sqm

47,262.81 sqm

Total floor area of building

83,706 sqm

42,694.21 sqm

Number of items in inventory

1 million items

About 469,000 items

Number of arrivalsーAbout 6,600 lines/day

Number of shipments(Target value) 100,000 lines/day

About 17,100 lines/day

Number of employeesー©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Around 200

25

TRUSCO NAKAYAMA Investor Relations

D. Key Indicators
P27

D-1. Goods

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

D-4. Digital

P33

D-5. Human resources
26©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

D-1. Key indicators (goods)▮ TRUSCO Orange Book.Com▮ Number of items in inventory: 545,547 items

Number of items featured: 2,985,038 items

Of these, number of goods automatically adopted:
23,723 items

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

Automatic stocking of hot-selling products

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

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

▮[Non-consolidated] TRUSCO Orange Book.Com
in company-wide sales
newly listed goods

Change in sales of
2,966

3,000

▮ TRUSCO Orange Book
Number of manufacturers listed: 1,948

2,477
2,500

2,000

"Monozukuri Daijiten" (Dictionary of Manufacturing)(2022 edition) used at various manufacturing sites

2,652

2,339
2,142

Number of items listed: 508,000

2,537

1,950

102

96

2,040

2,204

84
2,120

2,289
2,132

88

83

2,200

2,048

1,854
1,500

Number of products instock : 429,000
Total number of pages :16,824
Annual circulation:
190,000 copies
Size: A4

1,000

500

Sales of newly listed goods (100 million yen)
Sales of previously listed goods (100 million yen)
Number of suppliers0
2017©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2018

2019

2020

2021

27

TRUSCO NAKAYAMA Investor Relations

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

2,179

2,042
Sales to companies participating in
Orange Commerce (100 million yen)This is a purchasing support system that is linked to the user's
purchasing system and handles transactions between the user, thecustomer, and the Company. The introduction of the system has
made the procurement process more visible and reduced costs.

No. of companies participating in
Orange Commerce

84

1,414

Place orders on theinternal system

Receipt oforder data

2,000

1,235

96

1,057

85

80
72

1,500

(+17.8%)(+13.2%)(+6.2%)

1,000(+10.5%)(+17.5%)Users

Customers

500

Delivery of
goods

Delivery ofgoods
0▮ [Consolidated] Change in number of sales

2018

accounts and companies
35,00010,000

Number of companies

29,561
25,466 26,327
25,0002020

27,1402021

2022 3Q▮ Amount irrecoverable due to bankruptcy

Number of accounts

30,0002019

26,16826,881

Amountirrecoverable(10,000 yen)

30,9269,000

27,55023,683

8,000

2018

4

7,000

2019

0

6,000

2020

0

2021

275

3Q of
FY 20220

20,000
5,447

5,415

5,348

5,333

5,323

5,592

5,515

5,527

5,569

15,00010,000

5,000

2014

2015

2016

2017

2018

2019

2020
Consolidated©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2021
Consolidated

2022
3Q
Consolidated

4,000

28

TRUSCO NAKAYAMA Investor Relations

D-2. Key indicators (sales)▮ MRO Stocker (use-first-pay-later tools)
Introduced to 584 companies
as of the end of September 2022

Currently under negotiation

286 companies

Cumulative target number ofcompanies for installation asof the end of December 2022

1,409 companies

Monthly sales target per company

300,000 yen

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

● Operation flow

Linking automatic inventory ordering andorder information

Awarded in FY2021
Business systems and services

Suppliers

Deliveryof goods
Logistics

Core system
Payment
Data

Designated customers

Logistics center

Users
Delivery(restocking)

Payment for
the amountused

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

29
TRUSCO NAKAYAMA Investor Relations

D-3. Key indicators (logistics)▮ Share by Delivery Category (by number of shipment lines)
User visits0.3%

Delivery to
distributors
70.5%

2021
(2021)
3Q

Route shipments to Route shipments
to users
distributors
10.5%
17.9%
Distributor
visits0.8%

Delivery to
distributors
69.2%

2022
(2022)
3Q

0%

10 %

20 %

30 %

40 %

▮ Our User Direct Shipment Service
As it is becoming common to procure items from online
shopping companies, requests for direct shipments to users
are rapidly increasing. In light of expansion of collaboration
with online shopping companies, industry-wide labor
shortages and users' requests for shorter delivery lead times,
it is likely that direct shipments to users and the number ofunits will continue to increase, and so it is essential tostrengthen the direct shipment system.

I-Pack®
[High-speed automated packaging and shipping line]

Route shipments to Route shipments
to users
distributors
11.4%
18.3%

50 %

60 %

70 %

Distributor visits
0.8%
80 %

User visits 0.3%
10 0%

▮ Changes of the User Direct Shipment Service(Unit: 100 million yen, Ten thousand items)

400

450
400

283

350
300
250
200
150

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

200
145

233
147

380

350

Ten thousand items

300
250

216 100 million yen
200

180

150
100yen172 100 million

Shipping capacity:©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

90 %

50
0
2019
2019
(2019)

2020
2020(2020)

2021
2021(2021)

2022
2022
3Q
(2022)3Q

30

TRUSCO NAKAYAMA Investor Relations

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

inventory shipment rate
89.9

91.0

90.5

91.3

91.5

600,000

545,547
499,964
442,436

500,000

400,000

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

2017

2018

2019

2020

2021

41
318
0.13

39
370
0.11

42
427
0.10

50
406
0.12

55
416
0.13

▮ Delivery service and internal transportation
service: Number of units

392,100
374,600

300,000

No. of units

Change from theend of previous
fiscal year

280

+2

Chartered vehicle delivery service(contracted delivery service)

161

±0

Own company delivery service

119

+2

30

±0

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

Own company delivery service

4

+1

310

+2

Total number of deliveries

200,000

Number of items in inventory

100,000

Internal transportation service

Inventory shipment rate (%)

0

2018

2019

2020

2021

2022
3Q

▮ Delivery lead time
As of the end of August 2022:
19 hours, 49 minutes and 43 seconds(down 55 minutes and 10 seconds from the end of theprevious fiscal year)▮ Labor cost per line of incoming/outgoingshipments
As of the end of August 2022: 119 yen (+ 2 yen from theend of the previous fiscal year)©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Delivery service and internaldelivery service Total

Delivery service
We are reviewing delivery and internal transportation
services to optimize the number of units by streamlining
delivery routes and internal movement of inventory.
We are also increasing the number of own company delivery
services (delivery by the Company's employees) to improvecustomer service. The current own company delivery rate is
42.5%. We plan to increase own company delivery rate to
50% in 2024.

31

TRUSCO NAKAYAMA Investor Relations

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

● Rate of automated quotations● Rate of online quotation requests
60.0%

23.5%

25.0%

50.0%

42.7%

18.2%

20.0%

45.6%

36.7%

40.0%
15.0%

30.0%
10.0%

8.1%
20.0%

5.0%

10.0%

0.0%

2020

2021

0.0%

2022
3Q

2020

2021

2022
3Q

▮ System order rate
Orders received

Number of orders(thousand lines)

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

TRUSCO EDI
Data linkage with distributor ordering system

Orange Commerce
Linkage with users' purchasing system

EOS
Home center electronic ordering system

Total©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Line share

Change in line
share from theend ofprevious fiscal
year (pt)

Order value(million yen)Price share

Change inprice sharefrom the endof previous
fiscal year (pt)11,331

38.8%

△1.0

75,931

42.1%

±0.0

6,345

21.7%

+0.1

24,506

13.6%

+0.6

689

2.4%

+0.3

4,752

2.6%

+0.3

6,483

22.2%

+0.6

14,3467.9%+0.4

24,849

85.1%

△0.2

119,535

66.2%

+1.2

32

TRUSCO NAKAYAMA Investor Relations

D-5. Key indicators (human resources)▮ Number of Employees [Consolidated]
As of September 30, 2022

▮ Average age and annual income(Unit: persons)Female
1
0
157
1
0
0
300
3
13
0
85
0
1
19

Male
9
1
421
7
0
0
298
19
13
0
250
0
37
25

Total
10
1
578
8
0
0
598
22
26
0
335
0
38
44

YoY change
△1
△1
△8
+8
±0
±0
+15
+22
△2
±0
△9
△25
+5
+2

Seconded to health insurance
association

2

0

2

±0

Seconded to Nakayama Visually
Impaired Welfare Foundation

0

1

1

+1

Total number of employees(excluding executives)

581

1,072

1,653

+8

Part-time employees
Total

975
1,557

349
1,430

1,324
2,987

+87
+94

Executives
Executive officers
Career (overseas and domestic)
Carrier (regional)
Digital career
Logistics career
Area
Logistics area
Specialist
ExpertLogistics
SupportContract employees
Overseas subsidiaries

Average age (years)

Average annual income(10,000 yen)FemaleMale

Entirecompany

Career

Area

Logistics

Entirecompany

2021

32.8

43.2

39.6

724

596

456

615

2020

32.1

41.9

38.4

721

601

461

619

2019

31.3

42.0

38.2

758

642

492

655

2018

30.9

42.1

38.2

804

680

520

701

2017

30.7

42.7

38.6

805

696

541

715

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

Share of female employees: 35.1%, Number of female sales staff members: 48, Female employees incareer-track positions: 27.0%*The number of part-time employees represents the actual number of such workers under employment.

▮ Numbers of incoming and outgoing employees
2018

2019

2020

2021

3Q of 2022

[Non-consolidated][Consolidated][Consolidated][Consolidated][Consolidated]

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

Male

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

Female

Male

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

Female

Male

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

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Female

Male

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

Female

Male

581
1,072
1,653
44
48
92
34
32
66
5.5
2.9
3.8

33

TRUSCO NAKAYAMA Investor Relations

E. 60th Management Plan
P35

E-1. [Consolidated] Management plan

P36

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

P37

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

34©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

(Unit: million yen)

Actual results for FYE
December 31, 2021

Budget for FYE
December 31, 2022

Net sales

226,833

243,500

100.0%+7.3%

Gross profit

47,67051,720

21.2%

+8.5%

Selling, general andadministrative expenses (SGA)

34,67337,470

15.4%

+8.1%

(depreciation included in SGA)

6,929

6,853

2.8%

△1.1%

Operating income

12,997

14,250

5.9%

+9.6%

Ordinary income

13,555

14,600

6.0%

+7.7%

Profit attributable to ownersof parent

11,596

9,960

4.1%

△14.1%

35.50 yen

38.00 yen

Dividend per share

Share

ー

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

35

TRUSCO NAKAYAMA Investor Relations

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

Gross profit

Selling, general andadministrative
expenses (SGA)

Operating income

Ordinary income

Quarterly profit
attributable toowners of parent

Share

YoY change

Budget61,130 100.0

Actualresults

2nd Quarter (±0 day)3rd Quarter (+3 days)

AmountAmountShare

YoY change

Share

YoY change+6.1

59,543 100.0+ 8.2

59,442 100.0+ 9.6

61,159 100.0+6.1

59,524 100.0+ 8.2

60,241 100.0+ 11.1

Budget12,652 20.7

+2.1

12,602

21.2

+ 5.4

12,53221.1+ 14.3

Actualresults

12,88321.1+3.9

12,495

21.0

+ 4.5

12,376 20.5

+ 12.9Budget

9,257

15.1

+7.9

9,281

15.6

+ 9.5

9,273

15.6

+ 6.6

Actualresults

9,395

15.4

+9.5

10,05016.9+ 18.6

9,175

15.2

+ 5.5

Budget

3,395

5.6

△11.0

3,321

5.6

△ 4.8

3,259

5.5

+ 43.9Actualresults

3,488

5.7

△8.6

2,445

4.1

△ 29.93,200

5.3+ 41.4

Budget

3,429

5.6

△14.7

3,502

5.9

△ 5.2

3,287

5.5

+ 41.6

Actualresults

3,671

6.0

△8.6

2,475

4.2

△33.0

3,253

5.4

+ 40.1

Budget

2,334

3.8

△14.5

2,387

4.0

△ 5.4

2,242

3.8

△ 0.0

Actualresults

2,534

4.1

△7.1

1,715

2.9

△ 32.0

2,220

3.7

△ 1.0

4th Quarter (+1 day)AmountShare

Year-onyear change

63,385 100.0

13,934 22.0

9,659

15.2

4,275

6.7

4,382

6.9

2,997

4.7

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

36©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

E-3. [Consolidated] Quarterly budget and business performance(cumulative)▮ FYE December 31, 2022 Third Quarter [Cumulative](Unit: million yen, %)1st Quarter (-1 day)AmountNet sales

Gross profit

Selling, general andadministrative
expenses (SGA)

Operating income

Ordinary income

Quarterly profit
attributable toowners of parent

Share

YoY change

Budget61,130 100.0

Actualresults

2nd Quarter (-1 day)AmountShare

YoY change+6.1

120,673 100.0

61,159 100.0+6.1

Budget12,652 20.7

Actualresults

12,883

Budget3rd Quarter (+2 days)
AmountShare

YoY change+7.1

180,115 100.0+ 7.9

120,683 100.0+7.1

180,924 100.0

+ 8.4

+2.1

25,254 20.9

+3.7

37,786

21.0

+ 7.0

21.1

+3.9

25,37921.0+4.2

37,755 20.9

+ 6.9

9,257

15.1

+7.9

18,53815.4+8.7

27,811

15.4

+ 8.0

Actualresults

9,395

15.4

+9.5

19,445

16.1

+14.0

28,62115.8+ 11.1

Budget

3,395

5.6

△11.0

6,716

5.6

△8.1

9,975

5.5

+ 4.2

Actualresults

3,488

5.7

△8.6

5,933

4.9

△18.8

9,134

5.0

△ 4.5

Budget

3,429

5.6

△14.7

6,931

5.7

△10.1

10,2185.7+ 1.8

Actualresults

3,671

6.0

△8.6

6,147

5.1

△20.3

9,400

5.2

△ 6.3

Budget

2,334

3.8

△14.5

4,721

3.9

△10.1

6,963

3.9

△ 7.1

Actualresults

2,534

4.1

△7.1

4,250

3.5

△19.1

6,470

3.6

△ 13.7Full year (+3 days)
AmountYear-onyear change

243,500 100.0

51,72021.2

37,47015.4

14,2505.9

14,600

6.0

9,960

4.1

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

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Share

37

TRUSCO NAKAYAMA Investor Relations

F. ESG Information
P39

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

F-2. Material issues

P41

F-3. Sustainability indicators

38©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

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

Based on this basic policy, we will continue our efforts toward thefuture of people and society.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

39

TRUSCO NAKAYAMA Investor Relations

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

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

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

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

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

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

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

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

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

40©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

Annual power generation in 2021

Scope1 1,941.4t-co₂

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

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

▮ Sales of repair workshop "Naojiro"(Unit: million yen)Workshop

Naojiro ▮ Role of "Naojiro"

2,500

2,000
Full year budget

2,000

1,845
1,708

1,549

1,596

1,500

1,000

1,289

500

0
2018

2019

2020

2021

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2022
3Q

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

8 services of repair workshop "Naojiro"
RepairRegrinding

Calibration

Reuse

Processing

Maintenance

Assembly

Construction
andinstallation

41
TRUSCO NAKAYAMA Investor Relations

G. References
P43

G-1. Stock information

P44

G-2. Index comparison in the industry

P45

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

42©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

G-1. Stock information▮ Shareholder information(Unit: persons)FYE December
31, 2019

FYE June 30,
2020

FYE December
31, 2020

FYE June 30,
2021

FYE December
31, 2021

FYE June 30,
2022

40,10639,494

23,69722,887

16,336
15,514

14,903
14,03014,406
13,527

16,212
15,190

611

809

821

872

878

1,021

1

1

1

1

1

1

Financial institutions andsecurities companies

61

64

65

69

61

59

Domestic corporations

690

574

553

544

533

546

Overseas corporations,
etc.

252

210

201

203

203

212

Individuals and others

39,102

22,84815,516

14,086

13,60815,394

Treasury shares

1

1

1

1

1

1

Shareholders total
Holder of share
Holder of shares less than
one unit
Treasury shares▮ Change in stock price index
Movements of each indicator are quantified with the figures
in January 2010 set as 100.

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

TOPIX(901.12pt)

TRUSCO Nakayama(1,992 yen)

315.2

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

The Company's Stock
Closing price
2,020 yen

Nikkei Stock Average(25,937.21 yen)
Nikkei Stock Average
Closing Price
27,250.28 yen

254.3
203.7

January 2010

Tuesday, October 25,
2022

TOPIX
(1,835.94pt)

September 2022

TOPIX
1,907.14pt

43
TRUSCO NAKAYAMA Investor Relations

G-2. Index comparison in the industry▮ Performance of trading companies and direct sales companies (listed companies)
in the same industry
Trading companies in the machine tools industry include the following companies, but they operate differently in the wholesale
and retail sectors, and each handles different core products. The Company does not handle large machinery such as machine
tools, and mainly handles consumable supplies.

[Wholesale]
Closing month

Net sales (million yen)

Year-on-yearchangeMarketcapitalization(100 million yen)

YAMAZEN CORPORATION

2023

March

Forecast

530,000

+ 5.6

800

YUASA TRADING CO.,LTD.

2023

March

Forecast

490,000

+ 5.9

802

TRUSCO Nakayama
Corporation

2022

December

Forecast

243,500

+ 7.3

1,333

NICHIDEN Corporation

2023

March

Forecast

127,000

+ 2.4

538

MARUKA FURUSATOCORPORATION

2022

December

Forecast

158,000-

920

Naito & Co., Ltd.

2023

February

Forecast

48,500+ 11.285

SUGIMOTO & CO., LTD

2023

March

Forecast

45,150+ 4.7

191

1,642,150

+ 5.3

4,669

Total of 7 companies

ー[Retail]
Closing month

Net sales (million yen)

Year-on-yearchangeMarketcapitalization(100 million yen)

MISUMI Group Inc.

2023

March

Forecast

403,500+ 10.2

9,015

MonotaRO Co.,Ltd.

2022

December

Forecast

226,073+ 19.2

11,190629,573+ 29.420,205

Total of 2 companies

ー* For companies that announce consolidated accounting, figures for consolidated accounting are shown.
* All figures represent actual results and forecasts announced as of October 25, 2022.
* Market capitalization is based on the closing price on October 25, 2022.

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

44

TRUSCO NAKAYAMA Investor Relations

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

TRUSCO sales index

Industrial
production index

2015

2016

2017

2018

2019

2020

2021

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

45

TRUSCO NAKAYAMA Investor Rel