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

Published by:

Securities code: 9830

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

1

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

P5-9
P10-19
P20-24
P25-32
P33-36
P37-40
P41-44

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

2

TRUSCONAKAYAMA
InvestorInvestor
Relations
TRUSCONAKAYAMA
Rel

Company overview
Founding

May 15, 1959

Representative

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

Head offices

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

Number of
offices

94 in total:
89 domestic bases: (2 head offices, 59 domestic sales branches, 28 domestic distribution centers)
5 overseas bases: (Local subsidiaries:
TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED,
TRUSCO NAKAYAMA CORPORATION (INDONESIA) LIMITED,
Supplier development office: Germany, Taiwan (to be opened by the end of2022), Thailand)

Capital stock

5,022,370,000 yen

Listed stock
exchange

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

Number of
employees

2,919 [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 messageGAMBARE!! JAPANESE MONODZUKURI

3©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCONAKAYAMA
InvestorInvestor
Relations
TRUSCONAKAYAMA
Rel

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
5,542 companies

Users
∞

Factoryroute

Machine tool
dealers
Dealers of welding
materials, etc.

Manufacturers, construction
companies, etc.

e-business
route

Mainly internetordercompanies

Home center
route

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

Overseas
route

Mainly overseas
dealers

Suppliers
3,023 companies(+57 companies)

Domestic
suppliers

2,699 companies(+37 companies)

Overseas
suppliers

30 countries
324 companies

Manufacturers, general
consumers, etc.

Businesses conducting
outdoor work, general
consumers, etc.

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

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Overseas
manufacturers, etc.

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A. Company-wide Business
PerformanceP6 A-1. Accounting highlights
P7 A-2. [Consolidated] Business performance
P8 A-3. [Consolidated] Monthly sales
P9 A-4. [Consolidated] Monthly sales by sales route5©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

A-1. Accounting highlights<Global and Domestic Affairs>▮ Global and domestic economic climate
・Economic climate of businesses worsened due to soaring resource prices, weak yen,and the impact of COVID-19
・The Ukraine crisis is a situation that requires caution due to its uncertain outlook▮ Domestic manufacturing
・Economic climate of companies that procure materials from outside of Japan as wellhas deteriorated due to rising resource prices and a weakening yen
・The automotive industry has deteriorated as it was forced to reduce production due
to COVID-19 and semiconductor shortages<Company Initiatives>
・Expand the number of items offered, as well as increase the number of items instock to approximately 500,000 items.
・Strengthen the strategic instant delivery system
・"MRO Stocker" and "User Direct Shipment Service" improve efficiency of the entire
supply chain and contribute to reduced consumption of resources such as energy
and packaging materials.

Social Value x Economic Value
Promotion of TRUSCO "Gentleness, to the future ..."Project6©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

A-2. [Consolidated] Business performanceFYE December 31, 2022
1st Quarter

Fiscal Year Ending December 2022
First Quarter
YoY Change(amount)

YoY
ChangeBudget change
from budget

Changefrombudget(%)

Actual results

Rate

Actual results

Rate

Net sales

57,623 million yen－

61,159 million yen－

Gross profit

12,397 million yen

21.5% 12,883 million yen

21.1% +486 million yen +3.9% 12,652 million yen 20.7%+231 million yen+1.8%

Selling, generalandadministrative
expenses (SGA)

8,581 million yen

14.9%

9,395 million yen

15.4% +814 million yen +9.5%

9,257 million yen

15.1%+138 million yen+1.5%(depreciation
included in SGA)

1,704 million yen

3.0%

1,667 million yen

2.7%-37 million yen △2.2％

1,647 million yen

2.7%+20 million yen+1.2%

Operatingincome3,816 million yen

6.6%

3,488 million yen

5.7%-327 million yen △8.6％

3,395 million yen

5.6%+93 million yen +2.8%

Ordinary income

4,018 million yen

7.0%

3,671 million yen

6.0%-346 million yen △8.6％

3,429 million yen

5.6%+242 million yen

Profitattributable toowners ofparent2,728 million yen

4.7%

2,534 million yen

4.1%-193 million yen △7.1％

2,334 million yen

3.8%+200 million yen +8.6%

Net income
per share
PB salesCapitalexpenditures

41.37 yen
11,289 million yen
678 million yen－

38.44 yen－

19.6% 11,457 million yen

18.7%

－

－

1,770 million yen

BudgetRate+3,535 million yen +6.1% 61,130 million yen-2.93 yen－

35.39 yen-－+167 million yen +1.5% 12,117 million yen 19.8%+1,092 million yen

－

－

ー

+29 million yen +0.0%+3.05 yen

+7.1%

－

-659 million yen △5.4％－－

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

7©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

A-3. [Consolidated] Monthly sales
Orders are constantly placed for consumables used in factories. As such, we place focus on the sales per day.
Our sales increase during the peak periods of March when many companies close their accounts.

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

January

February

March

April

May

June

July

AugustOctoberNovember

December

BudgetActual results

Number of businessdays (days)
Year-on-yearchange (days)
Sales per day(million yen)

September

January

February

March

April

May

June

July

August

18

18

22

20

19

22

20

22

20

20

20

22

±0

±0

△1

△1

+1

±0

±0

+3

±0

△1

±0

+2

1,006

1,076

1,075

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

September OctoberNovember December

8
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A-4. [Consolidated] Monthly sales by sales route▮ Factory route▮ e-business route

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

January

February

March

April

May

June

July

AugustSeptember OctoberNovember December

BudgetActual results▮ Home center route

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

January February March

April

May

June

July

August September October November December
January

Actual results

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

BudgetFebruary

March

April

May

June

Actual results

July

August September October November December

BudgetJanuary

February

March

April

May

June

July

August

18

18

22

20

19

22

20

22

20

20

20

22

±0

±0

△1

△1

+1

±0

±0

+3

±0

△1

±0

+2

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

September OctoberNovember December

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

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

Sales route

Actualresults

Share

Gross
profitmarginOrdinary
incomeActualresults

ActualresultsFYE December 31, 2022
1st Quarter
Gross profit
marginNet sales

Actual results ShareYoY
increase

YoY
ChangeBudgetChangeBudgetActualYoY
fromchangebudget results Change
from budget(%)

Ordinary income

Actualresults

YoY
ChangeFactoryroute

41,696 millionyen 72.4% 20.9% 2,728 millionyen 43,117 millionyen 70.5% +1,420 millionyen +3.4% 43,841 millionyen -724 millionyen △1.7％ 20.8% △0.1pt 2,566 millionyen △5.9%

e-business
route

11,196 millionyen 19.4% 24.1%

973 millionyen 12,695 millionyen 20.8% +1,498 millionyen +13.4% 12,222 millionyen +472 millionyen +3.9% 22.5% △1.6 ｐｔ

918 millionyen △55.6%

Home
centerroute

4,328 millionyen 7.5% 18.9%

107 millionyen 4,857 millionyen

7.9%+529 millionyen +12.2%

4,581 millionyen +276 millionyen +6.0% 17.8% △1.1pt

62 millionyen △41.5%

Overseasroute

401 millionyen 0.7% 38.2%

18 millionyen

0.8%+86 millionyen +21.6%

485 millionyen

22 millionyen +22.8％

Total

488 millionyen+3 millionyen +0.7% 36.3% △1.9pt

57,623 millionyen 100% 21.5% 4,018 millionyen 61,159 millionyen 100% +3,535 millionyen +6.1% 61,130 millionyen +29 millionyen +0.0% 21.1% △0.4pt 3,671 millionyen △8.6%

Figures for the first quarter of the fiscal year ended December 31, 2021 are retroactively applied
due to a change in accounting 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, 2022
1st Quarter

FYE December 31, 2021
1st Quarter
Grossprofit margin

Net sales
Sales route
Share

Actualresults

20,791 million yen 49.9%

Grossprofit margin

Net sales
YoY
ChangeActualresults

YoY
Change20.8%

21,852 million yen 50.7% +5.1%

21.1%+0.3pt5,821 million yen 13.9%

21.3%

5,979 million yen 13.9% +2.7% 20.3% △1.0pt(Physical chemical, conductor, packaging
material dealers, etc.)

7,048 million yen 16.9%

20.6%

7,209 million yen 16.7% +2.3% 20.1% △0.5pt

Construction related

8,035 million yen 19.3%

21.3%

8,076 million yen 18.7% +0.5% 21.1% △0.2pt

Factory route total

41,696 million yen 100.0%

20.9%

43,117 million yen 100%

Actual results

Machine tool dealers
Dealers in welding materials
Other manufacturing related▮ Sales by region

Actual results

Share+3.4% 20.8% △0.1pt▮ Factory route:2021 aQF route net sales (million yen)

Up 3.4% year on year

2022 aQF route net sales (million yen)(

We worked to improve convenience forour clients by expanding our inventoryin line with market needs and increasing
the inventory volume of products forwhich orders are frequently received.

) YoY change

We have enhanced convenience forcustomers by improving the speed ofquotation responses and streamlining
order-receiving operations by reducing
stock shortages.
Hokkaido andTohokuKita-Kanto andShinshuTokyo
Metropolitan

Hokuriku

Tokai©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

Kinki

Chugoku andShikoku

Kyushu12
TRUSCO NAKAYAMA Investor Relations

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

FYE December 31, 2021
1st Quarter
Grossprofit margin

Net sales
Sales routeGrossprofit margin

Net sales

Actual results

Share

Actualresults

Actual results

Mail order companies

8,589 million yen

76.7%

23.1%

9,777 million yen

77.0%+13.8%

21.5%△1.6ptCompanies participating in
Orange Commerce (Trusco’s
electronic central purchasingsystem)

2,607 million yen

23.3%

27.1%

2,917 million yen

23.0%+11.9%

26.0%△1.1pte-business route total

11,196 million yen

100.0%

24.1%

12,695 million yen

100.0%+13.4%

22.5%△1.6ptShare

YoY
ChangeActualresults

YoY
Change▮ e-business route: Up 13.4% year on year
Sales to mail order companies surged 13.8% year on year and those to companies participating in Orange
Commerce increased 11.9%. We have had increased number of transactions by continuing to link the systems
between our product database of approximately 2,790,000 items and our customers’, by strengthening ourunique logistics services to meet packaging formats that meet their needs, and through the User Direct
Shipment Service utilizing our logistics facilities.
Machine tool
dealers▮ Sales to mail order companies: Sales ratio by industry
MRO mail order companies

MonotaRO, Misumi, etc.

General mailorder companies

Amazon, etc.

Stationery mailorder companies

Askul, etc.

Mail ordercompanies ofhome electricalappliances

Dealers of physicalchemical andmedical devices

Other mailordercompanies

Hardwareretailers

Dealers of
piping materials

Other

13
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TRUSCO NAKAYAMA Investor Relations

B-1. [Consolidated] Business performance by sales route:
Home center route▮ Sales by industry▮ Change in sales earned via home center route▮ Change in sales earned via pro-tool shops
2,802

3,000
Full year budget

Unit: million yen, %19,455 million yen

00

2,500
+25.0

18,373
16,99200

Unit: million yen, %+25 .0

2,403
2,137

+16.6

+20 .0

2,000
+12.4

14,702

00

00

+20.0
1,500

13,466755+10.0

YoY change
+1.9%

1,000
+15.0

+15.6

00

+15 .0+10 .0Year on year (%)
+5.0

500

00

00

4,857

+8.6
+9.2
+8.1

00

00

YoY change+12.2%

Year on year (%)

0
+10.0

+5.0

00
+0.0

0
2018

2019

2020

2021

2022 1Q

+0.0

2019

2020

2021

2022 1Q

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

▮ Home center route: Up 12.2% year on year
We continued to actively propose to general hardware mass discounters and pro-tool shops
to allot part of their floor spaces to our products. Our in-store pickup service, ledger
acquisitions, and sales floor proposals, utilizing our inventory of 500,000 items, contributed
to the increase in sales, and our business performance remained strong.

14©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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

TRUSCO NAKAYAMA CORPORATION(non-consolidated)
AmountRate

Net sales

61,027 million yen-

Gross profit

12,790 million yen

Selling, generaland administrative
expenses (SGA)

YoY
ChangeAmount

Rate

+6.1%

193 million yen

-

21.0%

+3.9%

47 million yen

9,323 million yen

15.3%

+9.6%

Depreciation
included in SGA

1,649 million yen

2.7%

Operatingincome3,466 million yen

Ordinary income
Net income

TRUSCO NAKAYAMA CORPORATION(INDONESIA) LIMITED

YoY
ChangeAmountRate

YoY change+1.4% 111 million yen-+73.5%

24.7%

+8.5%

32 million yen

29.0%+102.9%37 million yen

19.4%

+1.9%

34 million yen

30.8%

+7.6%

△2.2％

5 million yen

2.9%

△3.0％

12 million yen

11.3%

+4.9%

5.7%

△8.9％

10 million yen

5.3%

-

-1 million yen-+42.4%

3,658 million yen

6.0%

△8.8％

10 million yen

5.5%

-

-0 million yen-+47.3%

2,521 million yen

4.1%

△7.5％

10 million yen

5.5%

-

-0 million yen-+47.3%▮ [Reference] Non-consolidated business performancein other overseas regions
Net sales
Business performance inother overseas regions(Philippines, China, South
Korea, etc.)

Actualresults

184 million yen

Rate

ー

YoY
Change+25.0%▮ Overseas route: Up 21.6% year
on yearGross profit
47 million yen
25.6%+20.4%

Amid restrictions on social activities inboth Thailand and Indonesia due to theimpact of the COVID-19 pandemic, we
strengthened transactions with existingcustomers by accelerating the provisionof product data to EC companies. We
also expanded business with new local
customers, including EC companies andgeneral hardware mass discounters.

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 3,491 million yen

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

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

+963

Decrease inconstruction
goods

△107

Decrease in other(including
adjustments)

1Q of
FY 2022△298+2,93361,027(+6.1%)1Q of
FY 202157,536

Details[Rise in demand for supplies due to recovery in the manufacturing industry, etc.]+2,933 million yen
・ Environmental safety equipment (protective equipment, etc.):
・ Work supply (chemical products, etc.):
・ Hand tools (pneumatic tools, tools for manual work, etc.):+1,166 million yen+673 million yen+353 million yen, etc.

[Rise in demand for equipment due to recovery in capital expenditure] +963 million yen
・ Distribution and storage equipment (transportation goods, containers and vessels, etc.):+487 million yen
・ Construction goods (Piping and materials of electronic equipment, pumps, etc.) :+476 million yen[Decrease in construction goods]-107 million yen

・ Construction goods (decrease in demand for power generators, etc.): -107 million yen©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

16
TRUSCO NAKAYAMA Investor Relations

B-3. [Non-consolidated] Sales by category of goods
A recovery of production operations led to a rise in sales of products (large category 4, 7) related to factory production
and to capital expenditures. A revision to the law that introduces an obligation to wear fall arrest systems increased
demand for harness-type systems (large category 6). Meanwhile, demand for face masks and protective clothing (large
category 6) for the prevention of COVID-19 infections began to subside.
Category of goods(large category)

1. Cutting tools

Medium category

3. Construction
goods

Gross profit Category of goods
margin(large category)Medium category

3.1

+7.9

Environmental Environmental safety equipment
16.9 6. safetytotal① Cutting tools

910
974
4,636
2,435

1.5
1.6
7.6
4.0

+4.6
-

11.5
21.9
15.6
15.3

④ Mechatronics

922

1.5

-

15.4

⑤ Tools for machine tools

573

0.9

-

23.1

⑥ Electronic machinery

704

1.2

-

Distribution
10.7 7. andstorage

Production processing goods total③ Measurement equipment

equipment

Share

YoY change

Gross profit
margin10,848

17.8

+11.0

22.2

6,105
2,589
454
753

10.0
4.2
0.7
1.2

-

22.8
25.2
20.1
13.8

㉙ Disaster and crime prevention
goods

438

0.7

-

18.1

㉚ Closets and exterior goods

510

0.8

-

17.5

Distribution and storage equipment
total

7,045

11.5

+7.3

22.2

㉛ Loading goods

3.1
0.5
4.5

-

17.4
15.3
22.1

㉕ Protective equipment㉖ Safety goods㉗ Environment improvement goods㉘ Air conditioning goods

equipment

Trusco's sales

7,097
497

11.6
0.8

+5.6
-

20.8
11.2

⑧ Pumps

908

1.5

-

15.7

㉝ Transportation goods

1,898
322
2,717

⑨ Welding equipment

556
567

0.9
0.9

-

18.0
25.2

㉞ Containers and vessels

1,042

1.7

-

29.5

㉟ Steel shelves

1,061

1.7

-

26.1

Research management equipment
total

2,627

4.3

△1.3

23.0

㊱ Tool wagons

246

0.4

-

28.7

Construction goods total⑦ Hydraulic tools㉜ Conveyors⑪ Civil engineering and building
goods

655

1.1

-

⑫ Ladders and stepladders

884

1.4

-

Research
12.8 8. management
equipment
22.6⑬ Piping and materials ofelectronic equipment

1,135

1.9

-

22.6

㊲ Storage and management goods

346

0.6

-

31.4

1,893

3.1

-

26.2

㊳ Work benches

424

0.7

-

30.8

10,940

17.9

+6.8

21.9

㊴ Stainless goods

495

0.8

-

18.1

-

21.4

㊵ Research and developmentrelated goods

1,114

1.8

-

18.3

Office and23.9 9. housing
facility
20.8
equipment

Office and housing facility
equipment total

5,736

9.4

+3.8

22.6

㊶ Cleaning utensils

2.7
1.1
1.3
1.6
0.9

-

21.1
18.9
26.8
21.6
24.0

1.8

-

24.3

-

19.7

+32.4
+6.1

-0.1
21.0

⑭ Component, hardware, andbuilding materials
Work supply total⑮ Cutting goods

355

0.6

1,777

2.9

-

5,570
1,043
1,449
745
10,040

9.1
1.7
2.4
1.2
16.5

+3.2

㉑ Electric power tools andaccessories

2,597

4.3

㉒ Pneumatic tools andaccessories

1,627㉓ Tools for manual work

5,288
525

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

5. Hand tool

YoY change

1,884⑩ Painting and interior goods

4. Work supply

Share

Cutting tools total② Drilling and thread cutting tools

2. Production
processing
goods

Trusco's sales

Hand tool total㉔ Tool boxes

16.6
30.0
17.6
19.1

㊷ Stationery㊺ OA business machinery

1,629
652
774
948
536

-

14.2

㊻ Office furniture

1,115

2.7

-

17.8

㊼ Interior goods

8.7
0.9

-

20.8 10. Others
29.2㊽ Entire company㊸ Office miscellaneous goods㊹ Electric appliances

Total

77

0.1

169
61,0270.3
100.0* 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

17

TRUSCO NAKAYAMA Investor Relations

B-4. [Non-consolidated] Changes in sales by category of goods(Unit: million yen)

Dust mask

Connection terminals

Mesh palettes

Anti-slip gloves

Chips

Safety shoes(JSAA）

Waist belt-type
personal
fall arrest systems

Work benches

Disasterprevention goods

Sealing goods

Harness lanyards★Sterilization andhygiene goods

Scaffold platform★Working gloves

Truck sheets

Hanging hardware★Heat and temperature
measuring instruments★Protective clothing

Humidifiers

Manual chain block

18

Factory fans

Spot air conditioners
and cooling fans

Electric
screwdrivers★General-purpose
face masks★Hand sanitizers

Power generators

Sales decrease

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

Lift trucks andhand pallet trucks

Tape

Adhesives

Harness-type
personal fall arrest
systems

Sales increase0★: COVID-19 related products

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

Office andhousingfacility
Research equipment
management 10.4%
equipment
8.2%(+5.2%)(+1.5%)

2018

2019

2020

2021

Production
processing goods
3.6%

Cutting tools 1.6%

Full year budget:
46.6 billion yen

Construction
goods
9.0%

Work
supply17.0%

Distribution
and storage
equipment
25.7%

2022 1Q

Hand tool
9.8%

Share
Environmental
safetyequipment
14.7%

Gross
profitmargin▮ Sales by sales route and category of goods
Entire company

Sales route

18.8%

Share
Categoryof goods

Gross profit margin 35.9%
Net sales

YoY change

Factory

19.4%

Share

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

21.6%

Share

Gross profit margin 35.8%
Net sales

YoY change

5.2%

Share

Gross profit margin 31.1%
Net sales

YoY change

11,457
180

+1.5%
△3.3%

8,382
134

+1.9%
+2.1%

2,745
26

+0.4%
△19.2%

252
16

+0.8%
△11.5%

Production
processing goods

409

+0.8%

302

+3.2%

95

△4.8%

4

△5.4%

Construction goods

1,032

+8.6%

745

+8.8%

266

+9.4%

15

△4.9%

Work supply
Hand tool

1,951
1,121

+1.1%
△6.2%

1,541
814

+1.6%
△1.8%

374
260

△1.0%
△15.2%

1730△11.9%△10.4%

Environmental safety
equipment

1,686

△4.4%

1,257

△6.1%

396

+1.5%

28

△2.4%

Distribution andstorage equipment

2,943

+7.0%

2,083

+7.3%

719

+5.4%

128

+9.9%

Research management
equipment

942

△0.3%

688

△2.0%

246

+3.3%

1

+97.8%

Office and housing
facility equipment

1,188

+2.5%

814

+4.0%

359

△0.5%

8

△1.9%

-

0

-

Total
Cutting tools

Other

0

-

0

-

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved0

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 otherbrands. We are currently
developing approximately
10,000 items each year, andare working to further
strengthen our brand.

19
TRUSCO NAKAYAMA Investor Relations

C. Financial andOther 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
20©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

C-1. [Consolidated] Selling, general and administrative
expenses (SGA)
Unit: million yen( ) YoY change
Salary andbonus
Commission+109
Freight andfee(+4.7％)
packing+129
expenses(+26.3％)+168
Promotion (+10.1％)
expenses
+290
(-)

2021
(2021)
SGA for
1Q

8,581

Main factors of increase incommission fee
・ Intranet licenses, project support(+89 million yen)・ System maintenance costs(+14 million yen)・ Logistics facilities maintenance costs(+18 million yen)Otherchanges+172(+7.4％)

Depreciation Supplies
expenses△37△19(△2.2％)(△16.6％)2022(2022)
SGA for
1Q

Main factors of decrease in depreciation
・ Distribution equipment at distribution
centers
Material handling at Planet Tohoku(-22 million yen)
Material handling at Planet South Kanto(-21 million yen)

9,395(+9.5%)

Main factors of increase in salary and bonus
・ Base salary, performance-based salary(-31 million yen)・ Part-time employees salaries and bonuses(+77 million yen)

Main factors of increase in promotion expenses
The accounting treatment of catalog web posting fees included in promotion expenses waschanged in this period.
Before: Promotion expenses deducted each time catalog web posting fees are received.
Future: Temporary receipt until the time of catalog sales, deducted from cost of sales in
conjunction with catalog sales
Impact in the first quarter: 294 million yen

SGA up 814 million yen* For details on the factors of the changes, please see page 22.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

21
TRUSCO NAKAYAMA Investor Relations

C-1. [Consolidated] Details of selling,▮ Main factors of increase ( ) YoY change

general and administrative expenses(SGA)(Unit: million yen, %)FYE December 31, 2021 FYE December 31, 2022
1st Quarter
1st Quarter
Actualresults

YoY
Change(amount)

YoY
ChangeShare in net
sales

Actualresults

Share in net
sales

2,315

4.0

2,425

4.0

+109

+4.7

1,672

2.9

1,840

3.0

+168

+10.1

1,704

3.0

1,667

2.7

△37

△ 2.2

668

1.2

667

1.1

△1

△ 0.2

7 Taxes and dues

492
516
357

0.9
0.9
0.6

622
540
401

1.0
0.9
0.7

+129
+23
+44

+26.3
+4.6
+12.3

8 Promotion expenses

△ 48

△ 0.1

242

0.4

+290

ー

156

0.3

152

0.3

△3

△ 2.1

119

0.2

123

0.2

+4

+3.9

96

0.2

108

0.2

+11

+12.1

72
115

0.1
0.2

105
96

0.2
0.2

+33 +46.1△19 △ 16.6

82

0.1

89

0.1

+6

+8.3

72

0.2

69

0.2

△2

△ 3.4

61

0.1

68

0.1

+7

+12.1

5

0.0

7

0.0

+1

+27.9

119

0.2

165

0.2

+45

+38.4

8,581

14.9

9,395

15.4

+814

+9.5

No.
1 Salary and bonus
2 Freight and packing
expenses
3 Depreciation
4 Provision forbonuses
5 Commission fee
6 Welfare expense

9 Advertisingexpenses
10 Traveling expenses
and transportation
expenses
11 Communication
expenses
12 Utilities expenses
13 Supplies expenses
14 Leasehold andoffice rents
15 Remuneration paid
to directors
16 Vehicle expenses
17 Entertainment
expenses
18 Other
Total©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved[Salary and bonus]
・ Base salary, performance-based salary(-31 million yen)・ Part-time employees salaries and bonuses(+77 million yen)
[Freight and packing expenses]
・ Impact of increased shipments, etc.
(+166 million yen)
Of which, increase in direct shipment to users(+84 million yen)
(Note) For direct shipment to users, therequesting customer is responsible
for freight charges.
⇒ 1.78 million units shipped (+280,000 units)[Reference]
Number of chartered vehicles:
186 (-2 from the end of previous fiscal year)
Delivery by the Company's employees:
124 (+4 from the end of previous fiscal year)[Depreciation]
・ Distribution equipment at distribution centers
Material handling equipment and others at
Planet Tohoku(-22 million yen)
Material handling equipment and others at
Planet South Kanto(-21 million yen)[Commission fee]・ Intranet licenses, project support, etc.
(+89 million yen)・ System maintenance costs (+14 million yen)・ Logistics facilities maintenance costs(+18 million yen)
[Promotion expenses] *CW=Catalog Web
The accounting treatment of CW posting fees
included in promotion expenses was changedin this period.
Before: Promotion expenses deducted eachtime CW posting fees are received.
Future: Temporary receipt until the time ofcatalog sales, deducted from cost of sales in
conjunction with catalog sales
Impact in the first quarter: 294 million yen

22
TRUSCO NAKAYAMA Investor Relations

C-2. [Consolidated] Financial statements and financial indicators▮ Balance Sheet(As of March 31, 2022)

Unit (million yen)

Item
Amount Item
Amount(Assets)(Liabilities)
Current assets
118,292 Current liabilities
43,455
Cash and deposits
Accounts payable - trade
43,68920,208
Accounts receivable
Short-term borrowings
31,10017,000Electronically recorded
Accounts payable - other
1,336
2,733
monetary claims - operating
Merchandise
Income taxes payable
41,554
1,205
Other
Provision for bonuses
612
673
Provision for bonuses for
Allowance for doubtful
directors (and other△033
accounts
officers)
Non-current assets
Other
107,267
1,602
Property, plant and
98,442 Non-current liabilities
38,001equipment
Long-term
borrowings
Buildings
47,90835,000
Provision for retirement
benefits for directors
Machinery and equipment
7,524
151
(and other officers)
Long-term guarantee
Tools, furniture and fixtures
1,647
2,755
deposits
Other
Land
38,36894
Construction in progress
930 Total liabilities
81,456Other
2,063 (Net assets)
5,371 Shareholders' equity
143,747
Intangible assets
SoftwareCapital stock
4,866
5,022
Other
Capital surplus
505
4,711
Investments and other assets
Retained earnings
3,452
134,092
Investment securities
Treasury shares
2,882
△79
Accumulated other
Deferred tax assets
105 comprehensive income
356
Valuation difference on
Deferred tax assets for landavailable-for-sale155
620
revaluation
securities
Revaluation reserve for
Other
△357
318
land
Allowance for doubtful
Foreign currency△1089accounts
translation adjustment
Total net assets
144,103
Total assets
225,560 Liabilities / Total net assets
225,560©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved▮ Statement of cash flows
Unit:
million yen
単位：百万円

1st Quarter of 令和４年(2022年)
1st Quarter of
令和３年(2021年)
2021
2022
第１四半期
第１四半期

Change増減

Cashflows from operating activities
営業活動によるキャッシュ・フロー

5,695

4,977

△717

Cash
flows from investing activities
投資活動によるキャッシュ・フロー

△665△1,928△1,263Cashflows from financing activities
財務活動によるキャッシュ・フロー

△921△1,020△99

Effect of exchange rate change on cash and
現金及び現金同等物に係る換算差額
cash
equivalents

14

35

+21

Net increase (decrease) in cash and cash
現金及び現金同等物の増減額（△は減少）
equivalents

4,123

2,064

△2,058Cash and cash equivalents at beginning of
現金及び現金同等物の期首残高
period32,344

41,449+9,105Cashand cash equivalents at end of period
現金及び現金同等物の期末残高

36,46743,514+7,047▮ Financial indicators
1st Quarter of2021
Equity ratio

62.7%

2020

1st Quarter of
Change (pt)
2022

63.9%

2021

+1.2ptChange (pt)

ROA (Return on Assets)

5.7%

6.3%

+0.6ptROE (Return on Equity)

6.1%

8.4%

+2.3pt<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. 7,153 million yen(Unit: million yen)
Actualexpenditures
for 1Q

Details of major capital expenditures in 2022
Buildings

Planet Osaka warehouse construction, Planet East Kanto extension, repairs at company buildings, etc.

Facilities

Capital andbusiness alliancepartners

GROUND Inc.: Logistics platform support contract
Nagoya University: Planet Tokai local 5G environment construction

Logistics center

Planet Saitama introduction of palletizing robot, Planet South Kanto renovation ofbucket-type automated warehouse, etc.

Systems
Land

Product database "Sterra" renewal, Planet Aichi system construction (WCS, GWES, etc.),
Orange Commerce renewal, introduction of employee engagement system, etc.

26

420

242

3,688

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

197
35

Facilities
Systems

39

35

Land andbuildings

7１
87

80
123
96

7
7

59

hundredmillion yen

5,889

39

5
15

2020

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

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.

4

73

2019

-

7,153

Annual capital expenditures

2018

1,781

1,264

Subtotal

39

596

400

HC East Japan Distribution Center relocation plan

171

Expected
expendituresfor 2Q to 4Q

2022
Plan

For FYE December 31, 2022,
depreciation of 6,853 million yen (down76 million yen year on year) is planned.

24
TRUSCO NAKAYAMA Investor Relations

D. Key Indicators
P26

D-1. Goods

P27-28 D-2. Sales
P29-30 D-3. Logistics
P31

D-4. Digital

P32

D-5. Human resources

25©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

D-1. Key indicators (goods)▮ Number of items in inventory: 506,928 items▮ TRUSCO Orange Book.Com
Number of items featured:

Of these, number of goods automaticallyadopted: 10,210 items

2,799,031items

Automatic stocking of hot-selling products

Product search site with all the information you needto procure professional tools.
・ SDS (Safety Data Sheet)・ Drawing
・ Product quotes and orders(Available 24/7)
・ Return requests(Available 24/7)
・ Real-time stock check

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

▮[Non-consolidated] TRUSCO Orange Book.Com
in company-wide sales
Change in sales of newly listed goods
2,966

3,000

▮ TRUSCO Orange Book
Number of manufacturers listed: 1,948
Number of items listed: 508,000"Monozukuri Daijiten" (Dictionary of Manufacturing)used at various manufacturing sites(2022 edition)
Number of products
in stock : 429,000
Total number of pages :16,824
Annual circulation:
190,000 copies
Size: A4

2,500

2,000

2,537

2,652

2,339
2,142
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

1,000

500

Sales of newly listed goods (100 million yen)
Sales of previously listed goods (100 million yen)0©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2,477

Number of suppliers

2017

2018

2019

2020

2021

26

TRUSCO NAKAYAMA Investor Relations

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

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

No. of companies participating in
Orange Commerce

Place orders on theinternal system

Receipt oforder data

Customers

Users

Delivery of
goods

Delivery of
goods

2018

▮ [Consolidated] Change in number of sales
Number of accounts

29,561
25,46625,00026,327

27,14026,16826,881

5,447

9,000

2018

4

7,000

2019

0

6,000

2020

0

2021

275

2022 1Ｑ

0

8,000

5,415

5,348

5,333

5,323

5,592

5,515

2022 １Ｑ

5,527(10,000 yen)

30,46627,55023,68320,0002021

Amountirrecoverable

10,000

Number of companies

30,0002020▮ Amount irrecoverable due to bankruptcy

accounts and companies
35,000

2019

5,542

15,0005,000

10,000

4,000

2014

2015

2016

2017

2018

2019

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2020

2021

2022 1Q

27

TRUSCO NAKAYAMA Investor Relations

D-2. Key indicators (sales)▮ MRO Stocker (use-first-pay-later tools)
Introduced to 391 companies as of the end of March 2022
MRO Stocker is a tool version of a business model that has been popular in Japan for many years, "okigusuri"(use-first-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 arebilled only for the amount used, so they can use it without incurring inventory risk by simply providing thespace.

● Operation flow

Linking automatic inventory orderingand order information

Deliveryof goods

Logistics

Core system
Payment
Data

Designated customers

Suppliers

Logistics
centerAwarded in FY2021
Business systems and services

Users
Delivery(restocking)

Payment for
the amountused

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

28
TRUSCO NAKAYAMA Investor Relations

D-3. Key indicators (logistics)▮ Composition ratio by delivery category (by number of shipping lines)
Delivery to
distributors
71.3%

2021
1Q

User visits0.3%

Route shipments Routetoshipments
to users
distributors
9.8%
17.9%
Distributor visits
0.7%

Delivery to
distributors
68.5%

2022
1Q

Route shipments toRoute shipments
to users
distributors
12.1%
18.4%
Distributor visits
0.7%

0%

10%

20%

30%

40%

▮ About our User Direct Shipment Service

50%

70%

80%

User visits 0.3%

90%

100%

▮ Changes of the User Direct Shipment Service

450
As it is becoming common to procure items from online
shopping companies, requests for direct shipments to users
are rapidly increasing. In light of expansion of collaboration 400
with online shopping companies, industry-wide labor350
shortages and users' requests for shorter delivery leadtimes, it is likely that direct shipments to users and the300
number of units will continue to increase, and so it is250
essential to strengthen the direct shipment system.
200
I-Pack®
[High-speed automated packaging and shipping line] 150
Shipping capacity: 720 cs/h per line, equivalent to100
approx. 24 workers
I-Pack introduced to:50
Planet Tohoku,
Planet Saitama (3 lines)
0
Planet Tokai, Planet Osaka Total 6 lines©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

60%(Unit: 100 million yen, million items)

400

380
283
233
145

300

２１,６00200

350

million items

250

million yen

147

200

180
5,700

150

million 100
yen

50
2019

2020

2021

2022 1Q

029

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

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

2017

2018

2019

2020

2021

41
318
0.13

39
370
0.11

42
427
0.10

50
406
0.12

55
416
0.13

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

Change fromthe end of
previous
fiscal year

280

+2

Chartered vehicle delivery service(contracted delivery service)

160

-1

Own company delivery service

120

+3

30

±0

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

Own company delivery service

4

+1

310

+2

Total number of deliveries

Number of items in inventory
Inventory shipment rate (%)

2018

2019

2020

2021

2022 １Ｑ▮ Delivery lead time
As of the end of February 2022:
24 hours, 8 minutes and 32 seconds(+4 hours, 1 minute, 39 seconds from the end of
previous fiscal year)▮ Labor cost per line of incoming/outgoingshipments
As of the end of February 2022:
112 yen (-5 yen from the end of previous fiscal year)©2022 TRUSCO NAKAYAMA CORPORATION All Rights ReservedInternal delivery service

Delivery service and internaldelivery service Total

Delivery service
We are reviewing delivery and internal delivery services tooptimize the number of units by streamlining delivery routes
and internal movement of inventory.
We are also increasing the number of own company delivery
services (delivery by the Company's employees) to improvecustomer service. The current own company delivery rate is
42.9%. We plan to increase own company delivery rate to
50% in the future.

30

TRUSCO NAKAYAMA Investor Relations

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

● Rate of automated quotations

2020

2021

● Rate of online quotation requests

2022 １Ｑ

2020

2021

2022 １Ｑ▮ System order rate
Orders received

Number of orders(Lines)Line shareLine share
Change from theend of previous
fiscal year (pt)

Order price(million yen)Price share

Price share
Change from theend of previous
fiscal year (pt)

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

3,892,617

39.3%

+6.3

26,121

42.8%

+8.6

TRUSCO EDI
Data linkage with distributor ordering system

2,104,328

21.2%

+8.5

8,278

13.6%

+17.6

Orange Commerce
Linkage with users' purchasing system

229,504

2.3%

+15.6

1,655

2.7%

+23.4

ＥＯＳ
Home center electronic ordering system

2,186,247

22.0%

+7.9

4,550

7.5%

+11.7

Total

8,412,696

84.8%

+5.5

40,605

66.5%

+14.5

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

31
TRUSCO NAKAYAMA Investor Relations

D-5. Key indicators (human resources)▮ Number of Employees [Consolidated]▮ Average age and annual income

As of March 31, 2022

(Unit: persons)Female

Male

Total

YoY change

Executive officers

1
0

9
1

10
1

△1
△1

Career (overseas and domestic)

146

411

557

△33

Carrier (regional)

0
0
0
304
0
14
0
77
0
1
19

2
0
0
303
2
12
0
258
0
36
25

2
0
0
607
2
26
0
335
0
37
44

+2
±０
±０
+24
+2
△3
±０
△7
△26
△3
+2

2

0

2

±０

0

0

0

±０

563

1,050

1,613

△43

958
1,522

338
1,397

1,296
2,919

+166
+122

Executives

Digital career
Logistics career
Area
Logistics area
Specialist
ExpertLogistics
SupportContract employees
Overseas subsidiaries
Seconded to health insurance
association
Seconded to Nakayama Visually
Impaired Welfare Foundation
Total number of employees(excluding executives)
Part-time employees
Total

Average age (years)
FemaleMale

Average annual income(10,000 yen)

EntireCareercompany

Area

Logistics

Entirecompany2021

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

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 andexcludes 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 average annual income figures are on a nonconsolidated basis.

Share of female employees: 34.9%, Number of female sales staff members: 52, Female employees in careertrack positions: 25.9%* 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

2022 1Q[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

564
1,049
1,613
22
23
45
8
15
23
1.4
1.4
1.4

32
TRUSCO NAKAYAMA Investor Relations

E. 60th Management Plan
P34

E-1. [Consolidated] Management plan

P35

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

P36

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

33©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

(Unit: million yen)

Actual results for FYE
December 31, 2021
Before application of
the Revenue
Recognition Standard
Net sales

Plan for FYE
December 31, 2022*

Share
（％）

Year-onyearchange（％）－－(＋7.3)

229,342

243,500

Gross profit

48,27551,72021.2－

Selling, general andadministrative expenses(SGA)

35,38337,47015.4－(depreciation included in
SGA)

6,929

6,853

2.8

－

Operating income

12,891

14,2505.9－

Ordinary income

13,572

14,600

6.0－

Profit attributable toowners of parent

11,603

9,960

4.1

－

35.50 yen

38.00 yen

(Before application of the
Revenue Recognition Standard)

Dividend per share(246,169)－－* Because the Accounting Standard for Revenue Recognition was applied in the 60th plan, year-on-yearcomparison for the consolidated business performance forecast above is not presented.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

34

TRUSCO NAKAYAMA Investor Relations

E-2. [Consolidated] Quarterly business performance (quarterly)▮ Fiscal Year Ending December 2022 First Quarter (Quarterly)
1st Quarter (-1 day)BudgetBudgetNet sales
Actualresults
BudgetGross profit
Actualresults

Selling, generaland administrative
expenses (SGA)

BudgetActualresults
BudgetOperating income
Actualresults
BudgetOrdinary income
Actualresults

Quarterly profit
attributable toowners of parent

BudgetActualresults

Share

YoY change

61,130 100.0+6.1

61,159 100.0+6.1

12,65220.7+2.1

12,883

21.1

+3.9

9,257

15.1

+7.9

9,395

15.4

+9.5

3,395

5.6

△11.0

3,488

5.7

△8.6

3,429

5.6

△14.7

3,671

6.0

△8.6

2,334

3.8

△14.5

2,534

4.1

△7.1

2nd Quarter (±0 day)BudgetShare

YoY change

3rd Quarter (+3 days)
BudgetShare

YoY change

4th Quarter (+1 day)BudgetShare

59,543 100.0

59,442 100.0

63,385 100.0

12,602

21.2

12,532

21.1

13,934

22.0

9,281

15.6

9,273

15.6

9,659

15.2

3,321

5.6

3,259

5.5

4,275

6.7

3,502

5.9

3,287

5.5

4,382

6.9

2,387

4.0

2,242

3.8

2,997

4.7

YoY change

Figures for the first quarter of the fiscal year ended December 31, 2021 are retroactively applied due to achange in accounting policy.

35©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

E-2. [Consolidated] Quarterly business performance (cumulative)▮ Fiscal Year Ending December 2022 First Quarter [Cumulative]
1st Quarter (-1 day)BudgetBudgetNet sales
Actualresults
BudgetGross profit
Actualresults

Selling, generaland administrative
expenses (SGA)

BudgetActualresults
BudgetOperating income
Actualresults
BudgetOrdinary income
Actualresults

Quarterly profit
attributable toowners of parent

BudgetActualresults

Share

YoY change

61,130 100.0+6.1

61,159 100.0+6.1

12,65220.7+2.1

12,883

21.1

+3.9

9,257

15.1

+7.9

9,395

15.4

+9.5

3,395

5.6

△11.0

3,488

5.7

△8.6

3,429

5.6

△14.7

3,671

6.0

△8.6

2,334

3.8

△14.5

2,534

4.1

△7.1

2nd Quarter (-1 day)BudgetShare

YoY change

3rd Quarter (+2 days)
BudgetShare

YoY change

Full year (+3 days)
BudgetShare

120,673 100.0

180,115 100.0

25,25420.9

37,78621.0

51,72021.2

18,53815.4

27,811

15.4

37,470

15.4

6,716

5.6

9,975

5.5

14,250

5.9

6,931

5.7

10,218

5.7

14,600

6.0

4,721

3.9

6,963

3.9

9,960

4.1

Year-onyearchange243,500 100.0

Figures for the first quarter of the fiscal year ended December 31, 2021 are retroactively applied due to achange in accounting policy.

36©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

F. ESG Information
P38

F-1. TRUSCO "Gentleness, to the future ..." ProjectP39

F-2. Material issues

P40

F-3. Sustainability indicators

37©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

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

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

38©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

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

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

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

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

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

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

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

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

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

39©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"▮ Role of "Naojiro"(Unit: million yen)
Full year budget

Generally, it is common that who you should ask to repair a
product varies depending on the category of the product.
Naojiro is a one-stop gateway to repair services. Delivery
drivers and sales personnel collect products to be repaired asneeded. This means that clients are not required to packitems or pay freight fees. This service is based on fixed cost
distribution that ensures both the reuse of pro tools andclient efficiency. In January 2022, the Company will relaunch
its Naojiro section to popularize and enhance this service.

8 services of repair workshop "Naojiro"

2018

2019

2020

2021

©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

2022 １Ｑ

RepairRegrinding

Calibration

Reuse

Processing

Maintenance

Assembly

Construction
andinstallation

40
TRUSCO NAKAYAMA Investor Relations

G. References
P42

G-1. Stock information

P43

G-2. Information on other companies in thesame industry

P44

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

41©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

TRUSCO NAKAYAMA Investor Relations

G-1. Stock information▮ Shareholder information(Unit: persons)▮ Abolition of Shareholder Benefit Program
2019
End ofJune

2019
End ofDecember2020
End ofJune

2020
End ofDecember

2021
End ofJune

2021
End ofDecemberShareholders total

19,776

40,106

23,697

16,336

14,903

14,406

Holder of share

19,05439,49422,887

15,514

14,03013,528Holder of shares lessthan one unit

721

611

809

821

872

878

Treasury shares

1

1

1

1

1

0

Financial institutions andsecurities companies

73

61

64

65

69

61

Domestic corporations

563

690

574

553

544

533

Overseas
corporations, etc.

210

252

210

201

203

203

Individuals and others

18,92939,102

22,84815,516

14,086

13,608Treasury shares

1

1

1

1

1

1

[Announced on August 21, 2020]
We introduced the Shareholder Benefit Program in
fiscal year 1994 to express our gratitude to ourshareholders and to encourage more people to holdour shares. Since then, the number of shareholders
has steadily increased and is expected to reachapproximately 50,000 by the end of the 58th
business year (2020).
Accordingly, the cost of shareholder benefit
products was approximately 180 million yen in the
57th business year (2019), a trend that has been
increasing every year. Continued investment in
logistics facilities and information systems (digital) is
necessary to meet the needs of manufacturing sites.
As such, we have decided to revise our Shareholder
Benefit Program to invest for further growth.

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

TRUSCO Nakayama(632 yen)
Nikkei Stock Average(10,198.04)

TOPIX (901.12pt)

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

Friday, April 22, 2022
TRUSCO Nakayama(2,399 yen)

379.6
Nikkei Stock Average(27,821.43 yen)

272.8
216.0 TOPIX(1,946.40pt)
March 2022

The Company's Stock
Closing price
2,082 yen
Nikkei Stock Average
Closing Price
27,105.26 yen
TOPIX
1,905.15pt

42
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 nothandle large machinery such as machine tools, and mainly handles consumable supplies.

[Wholesale]
Closing month

Net sales (million yen)

Year-on-yearchangeMarketcapitalization(100 million yen)

Budget500,000
471,000
119,000

-

834
636
681

December

Actualresults

157,000

-

831

2022

February

Actualresults

44,070-91

SUGIMOTO & CO., LTD

2022

March

Actualresults

43,120-204

TRUSCO Nakayama
Corporation

2021

December

Actualresults

229,342

+ 7.5

1,366

1,563,532

-

4,643

YAMAZEN CORPORATION

2022

March

BudgetYUASA TRADING CO.,LTD.

2022

March

BudgetNICHIDEN Corporation

2022

March

MARUKA FURUSATOCORPORATION

2021

Naito & Co., Ltd.

ー

Total of 7 companies[Retail]
Closing month

Net sales (million yen)

Year-on-yearchangeMarketcapitalization(100 million yen)

MISUMI Group Inc.

2022

March

Budget366,000+ 17.89,169

MonotaRO Co.,Ltd.

2021

December

Actualresults

189,731+ 20.6

10,131555,731+ 38.4

19,300Total 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 April 26, 2022.
* Market capitalization is based on the closing price on April 26, 2022.
©2022 TRUSCO NAKAYAMA CORPORATION All Rights Reserved

43

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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

44

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