Summary of Consolidated Financial Results
for the Year Ended February 20, 2016
(Based on Japanese GAAP)
March 28, 2016
Company name:

Nitori Holdings Co., Ltd.

Stock exchange listing: Tokyo, Sapporo
Stock code:
9843
URL
Representative:
Inquiries:

http://www.nitorihd.co.jp/

President
General Manager,

Toshiyuki Shirai
Fumiki Takeda

Accounting and Finance Division
Scheduled date of ordinary general meeting of shareholders:TEL

03-6741-1204

May 13, 2016

Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results meeting:May 17, 2016
April 22, 2016
Yes
Yes

(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended February 20, 2016 (from February 21, 2015 to February 20, 2016)(1) Consolidated financial results
Percentages indicate year-on-year changes
Net sales
Millions of yen
458,140
417,285

Year ended February 20, 2016
Year ended February 20, 2015
(Note) Comprehensive income:Year ended February 20, 2016

Operating income
%
9.8
7.7

Millions of yen
73,03966,30724,458 million yen(△63.4%)

Year ended February 20, 2016
Year ended February 20, 2015

Millions of yen
75,00767,929%10.4
7.0

Net income
Millions of yen
46,96941,450%13.3
7.9

Year ended February 20, 2015 66,907 million yen(58.7%)

Diluted net income
per share
Yen
Yen
425.10421.40376.14374.73

Net income per share

Ordinary income

%
10.2
5.1

Ordinary
income/total assets
%
%
14.7
18.3
14.9
18.7

Net income/equity

Operatingincome/net sales
%
15.9
15.9

(2) Consolidated financial position
Total assets
As of February 20, 2016
As of February 20, 2015
(Reference)Equity:Year ended February 20, 2016

Net assets

Millions of yen
414,541
404,793

Equity ratio

Millions of yen
330,968
310,531329,695 million yen

Net assets per share
%
79.5
76.4

Year ended February 20, 2015

Yen
2,981.27
2,806.99

309,413 million yen(3) Consolidated cash flows

Year ended February 20, 2016
Year ended February 20, 2015

Cash flows fromoperating activities
Millions of yen
57,34352,923

Cash flows frominvesting activities
Millions of yen(35,899)(43,023)

Cash and cash equivalents
Cash flows fromat end of period
financing activities
Millions of yen
Millions of yen(9,943)36,794(6,654)25,713

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Total cash
dividends (Total)

Total

Ratio of
Dividend
dividends topayout ratio
netassets(Consolidated)(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended February 20, 2015
Year ended February 20, 2016

–
–

26.00
30.00

–
–

29.00
35.00

55.00
65.00

6,089
7,214

14.6
15.3

2.2
2.2

Year ending February 20, 2017 (Forecast)

–

35.00

–

35.00

70.00

1

15.1

3. Forecast of consolidated financial results for the year ending February 20, 2017 (from February 21, 2016 to February 20, 2017)

Net sales
Millions of yen
Six months ending
August 20, 2016
Full year

Percentages indicate year-on-year changes
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share% Millions of yen% Millions of yen% Millions of yen%
Yen

241,000

8.5

39,5007.6

40,0005.9

24,8008.3

224.25500,000

9.1

79,0008.2

80,0006.7

51,4009.4

464.78

4. Notes(1) Changes in significant subsidiaries during the year ended February 20, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements after error corrections:No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 20, 2016

114,443,496 shares As of February 20, 2015

114,443,496 shares

Number of treasury shares at the end of the period
As of February 20, 2016

3,854,468 shares As of February 20, 2015

4,213,630 shares

110,488,560 shares Year ended February 20, 2015

110,202,313 shares

Average number of shares during the period
Year ended February 20, 2016

*Statement Relating to the Execution Status for Audit Procedures
Financial results in this report are exempt from the audit procedures based on the Financial Instruments and Exchange Act. At the time of
disclosure of this report, the audit procedures based on the Financial Instruments and Exchange Act have not been completed.
*Explanation for appropriate use of financial forecasts and other special notes
The forecasts given in this document are based on the information currently available to the Company and certain reasonable assumptions.
Actual results may differ from these forecasts for a variety of reasons.

2Consolidated financial statements
Consolidated balance sheet(Millions of yen)
As of February 20, 2015

As of February 20, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade26,40913,06342,327
15,258Merchandise and finished goods
Work in process

41,563
184

43,07990

Raw materials and supplies
Deferred tax assets

2,740
831

2,247
2,602

Forward exchange contracts
Other

25,873
13,333

8,160
16,231

Allowance for doubtful accounts

(5)

(8)

123,994

129,989

146,778

157,565

Accumulated depreciation(61,553)(69,339)

Buildings and structures, net

85,22488,225

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

7,977

8,672

Accumulated depreciation(4,515)(5,156)

Machinery, equipment and vehicles, net

3,462

3,515

10,945

12,228

Accumulated depreciation(6,960)(7,803)Tools, furniture and fixtures, net

3,985

4,424

111,106

115,504

3,877
(970)

3,868
(1,152)

2,907

2,715

Tools, furniture and fixtures

Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress

4,255

10,477

210,942

224,863

Leasehold right
Other

7,648
2,812

7,664
3,545

Total intangible assets

10,460

11,209Investments and other assets
Investment securities

1,569

2,763

Long-term loans receivable
Guarantee deposits

642
17,042

540
15,362

Lease deposits
Deferred tax assets

17,0501,030

18,0792,821

Other
Allowance for doubtful accounts

22,070
(9)

8,921
(9)

Total investments and other assets

59,396

48,478

280,799

284,551

404,793414,541

Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets3

(Millions of yen)
As of February 20, 2015

As of February 20, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade16,473

15,356

Short-term loans payable
Lease obligations

4,392
188

1,504
188

Accounts payable - other
Income taxes payable

18,031
13,961

16,195
14,929Deferred tax liabilities
Provision for bonuses

5,167
2,374

–
3,024

Provision for point card certificates
Provision for special benefits to shareholders

1,029
121

1,031
191

Asset retirement obligations
Other

26
14,241–
15,176

Total current liabilities

76,00767,597

Non-current liabilities
Long-term loans payable

2,129

625

Lease obligations
Deferred tax liabilities

2,706
3,020

2,518
1

Provision for directors' retirement benefits
Net defined benefit liability

228
2,345

228
2,279

Asset retirement obligations
Other

2,266
5,557

3,902
6,418

Total non-current liabilities

18,254

15,974

94,262

83,572

Shareholders' equity
Common stock

13,37013,370Capital surplus
Retained earnings

13,725
267,963

14,411
308,854

Treasury stock(14,639)(13,392)

Total shareholders' equity

280,419

323,244

Unrealized holding gain(loss) on securities
Unrealized gain(loss) from hedging instruments

586
25,095289
4,165

Foreign currency translation adjustment
Remeasurements of defined benefit plans

3,345
(33)

2,301
(305)

Total accumulated other comprehensive income

28,993

6,450

1,050
66

1,174
98

310,531

330,968

404,793414,541

Total liabilities
Net assets

Accumulated other comprehensive income

Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

4Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
February 20, 2015

Fiscal year ended
February 20, 2016

Net sales

417,285

458,140

Cost of sales

198,947

214,597

Gross profit

218,337

243,543

Selling, general and administrative expenses

152,029

170,503

Operating income

66,30773,039431

450

Dividends income
Foreign exchange gains

23
466

31
681

Vending machine income
Gain on sales of goods

226
258

227
282

Other

333

372

1,740

2,046

98
19

76
2

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses

118

78

67,92975,007

Gain on sales of non-current assets
Subsidy income

27
–

9
643

Gain on reversal of subscription rights to shares
Other

64
–

10
10

Total special gains

91

673

Ordinary income
Special gains

Special losses
Loss on sales and disposal of non-current assets

120

57

Loss on reduction of non-current assets
Penalty for the scrap and build of outlets

–
119

431
35

Impairment loss
Special retirement expenses

122
86

488
–

Other

6

46

456

1,060

Income before income taxes and minority interests

67,56574,619

Income taxes - current

26,86427,514

Total special losses

Income taxes - deferred

(775)

103

Total income taxes

26,08827,618Net income before minority interests

41,47747,00126

32

41,45046,969Minority interests in income
Net income

5Consolidated statement of comprehensive income(Millions of yen)

Net income before minority interests
Other comprehensive income

Fiscal year ended

Fiscal year ended

February 20, 2015

February 20, 2016

41,47747,001

Unrealized holding gain(loss) on securities
Unrealized gain(loss) from hedging instruments

277
22,470(296)(20,930)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

2,682
–

(1,044)(271)

Total other comprehensive income

25,430(22,542)

66,90724,45866,881
26

24,42632

Comprehensive income
Total comprehensive income attributable to
Shareholders of Nitori Holdings Co., Ltd.
Minority interests

6Consolidated statement of changes in net assets
Fiscal year ended February 20, 2015
(Millions of yen)
Shareholders' equity
Common stock
Balance at February 20, 2014

Capital surplus

13,370Retained earnings

13,581

Total shareholders'equityTreasury stock

232,398(15,848)

243,502

Cumulative effects of changes inaccounting policies–

Restated balance

13,37013,581

232,398(15,848)

243,502

Changes of items during the year
Dividends from surplus(5,886)

Net income

41,450(5,886)
41,450Purchase of treasury stock
Disposal of treasury stock

143

(12)

(12)

1,222

1,365

Net changes in items other thanthose in shareholders' equity
Total changes of items during theyear
Balance at February 20, 2015–

143

35,564

1,209

36,916

13,37013,725

267,963(14,639)

280,419

Accumulated other comprehensive income
Unrealized
Unrealized
holdinggain(loss)
gain(loss) on from hedging
securities
instruments
Balance at February 20, 2014

309

2,624

Total

Foreigncurrencytranslation
adjustment

Remeasurements

accumulatedof defined benefit

other

plans

comprehensive

662–

Subscription
rights tosharesMinority
interests

income

3,597

757

40

Cumulative effects of changes inaccounting policies
Restated balance

Total net
assets247,898
–

309

2,624

662

–

3,597

757

40

247,898

Changes of items during the year
Dividends from surplus(5,886)

Net income

41,450Purchase of treasury stock(12)

Disposal of treasury stock

1,365

Net changes in items other thanthose in shareholders' equity

277

22,470

2,682

(33)

25,396292

26

25,715

Total changes of items during the
year

277

22,470

2,682

(33)

25,396292

26

62,633

Balance at February 20, 2015

586

25,095

3,345

(33)

28,993

1,050

66

310,531

7

Fiscal year ended February 20, 2016
(Millions of yen)
Shareholders' equity
Common stock
Balance at February 20, 2015

Capital surplus

13,370Retained earnings

13,725

267,963

Cumulative effects of changes inaccounting policies

Total shareholders'equityTreasury stock(14,639)

280,419434

Restated balance

13,37013,725

268,398434(14,639)

280,854

Changes of items during the year
Dividends from surplus(6,513)(6,513)

Net income

46,96946,969Purchase of treasury stock
Disposal of treasury stock

686

(1)

(1)

1,248

1,935

Net changes in items other thanthose in shareholders' equity
Total changes of items during theyear
Balance at February 20, 2016–

686

40,455

1,247

42,38913,37014,411

308,854(13,392)

323,244

Accumulated other comprehensive income
Unrealized
Unrealized
holdinggain(loss)
gain(loss) on from hedging
securities
instruments
Balance at February 20, 2015

586

25,095

Total

Foreigncurrencytranslation
adjustment

Remeasurements

accumulatedof defined benefit

other

plans

comprehensive

3,345

(33)

Subscription
rights tosharesMinority
interests

income28,993

1,050

66

Cumulative effects of changes inaccounting policies
Restated balance

Total net
assets

310,531434

586

25,095

3,345

(33)

28,993

1,050

66

310,965

Changes of items during the year
Dividends from surplus(6,513)

Net income

46,969Purchase of treasury stock(1)

Disposal of treasury stock

1,935

Net changes in items other thanthose in shareholders' equity(296)(20,930)(1,044)(271)(22,542)123

32(22,386)

Total changes of items during the
year

(296)

(20,930)(1,044)(271)(22,542)

123

32

20,002

Balance at February 20, 2016

289

4,165

2,301

(305)

6,450

1,174

98

330,9688

Consolidated statement of cash flows(Millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests

Fiscal year ended

Fiscal year ended

February 20, 2015

February 20, 2016

67,56574,61910,190122

10,799488

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses

4
19

3
662

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for point card certificates

239
(755)

356
1

Interest and dividends income
Interest expenses

(454)
98

(482)
76

Loss (gain) on sales and disposal of non-current assets
Loss on reduction of non-current assets

93
–

48
431

Penalty for the scrap and build of outlets
Subsidy income

119
–

35
(643)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(2,033)(6,941)(2,138)(1,157)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes

1,250
3,146

(1,020)(2,363)

Depreciation and amortization
Impairment loss

Other, net

792(1,307)

Subtotal

73,45778,411

Interest and dividends income received

447

492

Interest expenses paid
Payment of penalty for the scrap and build of outlets

(100)
(31)

(79)
(17)

Income taxes paid
Income taxes refund(25,584)
4,734(26,692)
5,228

Net cash provided by operating activities

52,92357,343

Cash flows from investing activities
Payments into time deposits(601)(10,848)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

769(38,691)

5,870(28,021)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

82(1,540)8(1,656)

–
(767)

431
(30)

170
(1,278)108(1,101)

Proceeds from collection of lease deposits
Proceeds from guarantee deposits received

68
32

356
549

Proceeds from lease deposits received
Purchase of long-term prepaid expenses

240(1,190)595(464)

Purchase of short-term and long-term investment securities
Payments of loans receivable

(91)
(213)

(1,677)(40)

Proceeds from collection of loans receivable
Other payments

6
(20)

43
(23)

(43,023)(35,899)

Proceeds from state subsidy
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments for lease deposits

Net cash used in investing activities

9

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Fiscal year ended

Fiscal year ended

February 20, 2015

February 20, 2016
(967)

–

4,000
(4,166)–(4,392)

(196)
(12)

(188)
(1)

Cash dividends paid
Proceeds from exercise of stock option(5,884)573(6,509)1,148

Net cash used in financing activities(6,654)(9,943)

Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock

Effect of exchange rate changes on cash and cash equivalents

1,288

(419)

Net increase in cash and cash equivalents

4,534

11,080Cash and cash equivalents at beginning of the year

21,17925,713

Cash and cash equivalents at end of the year

25,71336,79410