Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended February 20, 2017
(Based on Japanese GAAP)
March 28, 2017
Company name:

Nitori Holdings Co., Ltd.

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

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

President and Chief Operating Officer
General Manager,

Accounting and Finance Division
Scheduled date of ordinary general meeting of shareholders:Toshiyuki Shirai
Fumiki Takeda

TEL

03-6741-1204

May 11, 2017

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 16, 2017
April 21, 2017
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, 2017 (from February 21, 2016 to February 20, 2017)(1) Consolidated operating results
Net sales

Operating income

Percentages indicate year-on-year changes
Profit attributable toOrdinary income
owners of parent
Millions of yen% Millions of yen%
87,56316.7
59,99927.7
75,007
10.4
46,96913.3

Millions of yen% Millions of yen%
Year ended February 20, 2017
512,958
12.0
85,776
17.4
Year ended February 20, 2016
458,140
9.8
73,03910.2(Note) Comprehensive income:Year ended February 20, 2017 66,694 million yen[172.7%]
Year ended February 20, 2016

Net income per share

Profit attributable toOrdinary
owners of parent
income/total assets/equityYen%%
536.23
16.6
19.4
421.40
14.7
18.3

Diluted net income
per shareYen
540.93425.10Year ended February 20, 2017
Year ended February 20, 2016

24,458 million yen[(63.4%)]
Operatingincome/net sales
%
16.7
15.9

(2) Consolidated financial position
Total assets
As of February 20, 2017
As of February 20, 2016
(Reference)Equity:Year ended February 20, 2017

Net assets

Millions of yen
487,814414,541
393,693 million yen

Equity ratio

Millions of yen
394,778
330,968

Net assets per share
%
80.7
79.5

Year ended February 20, 2016

Yen
3,530.51
2,981.27

329,695 million yen(3) Consolidated cash flows

Year ended February 20, 2017
Year ended February 20, 2016

Cash flows fromoperating activities
Millions of yen
77,93057,343

Cash flows frominvesting activities
Millions of yen(42,047)(35,899)

Cash and cash equivalents
Cash flows fromat end of period
financing activities
Millions of yen
Millions of yen(6,414)
66,035(9,943)36,794

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

Year ended February 20, 2016
Year ended February 20, 2017
Year ending February 20, 2018
(Forecast)

Total

Total cash
dividends (Total)

Dividend
payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

30.00
35.00

–
–

35.00
47.00

65.00
82.00

7,214
9,141

15.3
15.2

2.2
2.5

–

45.00

–

47.00

92.00

1

15.0

3. Forecast of consolidated financial results for the year ending February 20, 2018 (from February 21, 2017 to February 20, 2018)

Net sales
Millions of yen
Six months ending
August 20, 2017
Full year

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

282,000

10.7

48,500(1.4)

49,000(1.7)

33,0000.5

295.93568,000

10.7

99,00015.4

100,000

14.2

68,50014.2

614.294. Notes(1) Changes in significant subsidiaries during the year ended February 20, 2017(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:

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, 2017

114,443,496 shares As of February 20, 2016

114,443,496 shares

Number of treasury shares at the end of the period
As of February 20, 2017

2,931,758 shares As of February 20, 2016

3,854,468 shares

110,918,322 shares Year ended February 20, 2016

110,488,560 shares

Average number of shares during the period
Year ended February 20, 2017

*Statement Relating to the Execution Status for Audit Procedures
Financial results in this report are exempt from the audit procedures.
*Explanation for appropriate use of financial forecasts and other special notes
The forecasts given in this document are based on the current available information in the company and certain reasonable assumptions to thecompany. And we don’t commit to achieve these forecasting numbers. Actual results may differ from these forecasts by a variety of reasons.

2Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 20, 2016

As of February 20, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade42,327
15,25870,56018,486Merchandise and finished goods
Work in process

43,07990

46,52092

Raw materials and supplies
Deferred tax assets

2,247
2,602

2,354
1,001

Forward exchange contracts
Other

8,160
16,231

15,002
16,174

Allowance for doubtful accounts
Total current assets

(8)

(9)

129,989

170,182

157,371

180,661

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation(69,146)(76,898)

Buildings and structures, net

88,225

103,763

Machinery, equipment and vehicles

8,622

9,653

Accumulated depreciation(5,106)(5,754)

Machinery, equipment and vehicles, net

3,515

3,899

12,122

13,890

Accumulated depreciation(7,697)(8,511)Tools, furniture and fixtures, net

4,424

5,379

Land

115,504

126,923

Leased assets
Accumulated depreciation

3,868(1,152)

3,728(1,214)

2,715

2,514

Tools, furniture and fixtures

Leased assets, net
Construction in progress

10,477

5,615

Total property, plant and equipment

224,863

248,094

Leasehold right
Other

7,664
3,545

8,771
4,961

Total intangible assets

11,20913,732

Investments and other assets
Investment securities

2,763

3,531

Long-term loans receivable
Guarantee deposits

540
15,362856
15,720

Lease deposits
Deferred tax assets

18,0792,821

20,5152,952

Other
Allowance for doubtful accounts

8,921
(9)

12,239(9)

Total investments and other assets

48,47855,804

284,551

317,631414,541

487,814

Intangible assets

Total non-current assets
Total assets3

(Millions of yen)
As of February 20, 2016

As of February 20, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

15,356

16,001

Short-term loans payable
Lease obligations

1,504
188

625
187

Accounts payable - other
Income taxes payable

16,195
14,92919,291
15,630

Deferred tax liabilities
Provision for bonuses

–
3,024

564
3,751

Provision for point card certificates
Provision for special benefits to shareholders

1,031
191

1,301
214

Asset retirement obligations
Other–
15,17644
18,112

Total current liabilities

67,59775,724Non-current liabilities
Long-term loans payable

625–

Lease obligations
Deferred tax liabilities

2,518
1

2,330
3

Provision for directors' retirement benefits
Net defined benefit liability

228
2,279

228
2,634

Asset retirement obligations
Other

3,902
6,418

4,565
7,548

Total non-current liabilities

15,974

17,31083,572

93,035

Shareholders' equity
Common stock

13,37013,370Capital surplus
Retained earnings

14,411
308,854

16,306361,103

Treasury shares(13,392)(10,188)

Total shareholders' equity

323,244

380,592

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

289
4,165

884
10,369Foreign currency translation adjustment
Remeasurements of defined benefit plans

2,301
(305)

2,243
(396)

Total accumulated other comprehensive income

6,450

13,100

1,174
98

940
144

330,968

394,778

414,541

487,814

Total liabilities
Net assets

Accumulated other comprehensive income

Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
February 20, 2016

Fiscal year ended
February 20, 2017

Net sales

458,140

512,958

Cost of sales

214,597234,684

Gross profit

243,543

278,274

Selling, general and administrative expenses

170,503

192,497

Operating income

73,03985,776450433

Dividends income
Foreign exchange gains

31
681

34
102

Vending machine income
Gain on sales of goods

227
282

246
300

Construction revenue from tenants
Facility use revenue

–
21

147
174

Non-operating income
Interest income

Other

351

425

2,046

1,865

Interest expenses
Other

76
2

59
19

Total non-operating expenses

78

78

75,00787,563Gain on sales of non-current assets
Subsidy income

9
643

645
80

Penalty income
Gain on reversal of subscription rights to shares

–
10

52
7

Other

10

16

Total special income

673

801

Loss on sales and retirement of non-current assets
Loss on reduction of non-current assets

57
431

73
–

Penalty for the scrap and build of outlets
Impairment loss

35
488

148
10

Special retirement expenses
Cancellation penalty

–
11

54
190

Loss on valuation of investment securities
Other

–
35

61
4

1,060

543

Income before income taxes and non-controlling interests

74,61987,822

Income taxes – current
Income taxes – deferred

27,514103

28,565(787)

Income taxes

27,61827,777

Net income

47,00160,04432

45

46,96959,999Total non-operating income
Non-operating expenses

Ordinary income
Special income

Special losses

Total special losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)

Net income
Other comprehensive income

Fiscal year ended

Fiscal year ended

February 20, 2016

February 20, 2017

47,00160,044

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(296)(20,930)

594
6,204

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax(1,044)
(271)

(57)
(91)

Total other comprehensive income(22,542)

6,649

24,45866,694

24,426

66,64932

45

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in net assets
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)

Profit attributable to owners ofparent46,96946,969Purchase 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
Valuationdifference on
available-forsale securities
Balance at February 20, 2015

586

Deferred
gains orlosses onhedges25,095

Total

Foreigncurrencytranslation
adjustment

of defined benefit

other

plans

comprehensive

3,345

(33)

Remeasurements

accumulated

Subscription
rights toshares

Noncontrollinginterests

1,050

66

income28,993Cumulative 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)

Profit attributable to owners ofparent46,969Purchase 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

330,968

7

Fiscal year ended February 20, 2017
(Millions of yen)
Shareholders' equity
Common stock
Balance at February 20, 2016

Capital surplus

13,370Retained earnings

14,411

Total shareholders'equityTreasury stock

308,854(13,392)

323,244

Changes of items during period
Dividends from surplus(7,749)(7,749)Profit attributable to owners ofparent59,99959,999Purchase of treasury stock
Disposal of treasury stock

1,894

(4)

(4)

3,208

5,102

Net changes of items other thanthose in shareholders' equity
Total changes of items during
period–1,894

52,2493,203

57,348

Balance at February 20, 201713,37016,306361,103(10,188)

380,592

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at February 20, 2016

289

Deferred
gains orlosses onhedges
4,165

Total

Foreigncurrencytranslation
adjustment

Remeasurements

accumulatedof defined benefit

other

plans

comprehensive

2,301

(305)

Subscription
rights toshares

Noncontrollinginterests

1,174

98

Total net
assetsincome6,450

330,968

Changes of items during period
Dividends from surplus(7,749)Profit attributable to owners ofparent59,999Purchase of treasury stock(4)

Disposal of treasury stock

5,102

Net changes of items other thanthose in shareholders' equity

594

6,204

(57)

(91)

6,649

(233)

45

6,461

Total changes of items during
period

594

6,204

(57)

(91)

6,649

(233)

45

63,809Balance at February 20, 2017

884

10,369

2,243

(396)

13,100940

144394,7788

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Income before income taxes and non-controlling interests

Fiscal year ended

Fiscal year ended

February 20, 2016

February 20, 201774,61987,822

Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for point card certificatesInterest and dividend income
Interest expenses
Loss (gain) on sales and disposal of non-current assets
Loss on reduction of non-current assets
Penalty for the scrap and build of outlets
Subsidy income
Loss (gain) on valuation of long-term investment securities
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Other, net

10,799
488
3
662
356
1
(482)
76
48
431
35
(643)
–
(2,138)(1,157)(1,020)(2,363)(1,307)

12,312
10
1
733
266
270
(468)
59
(571)
–
148
(80)
61
(1,816)(3,742)
1,409
2,447
470

Subtotal

78,411

99,334

Interest and dividends income received
Interest expenses paid
Payment of penalty for the scrap and build of outlets
Income taxes paid
Income taxes refund

492
(79)
(17)
(26,692)
5,228

465
(56)
(15)
(29,311)
7,512

Net cash provided by operating activities

57,34377,930(10,848)
5,870(28,021)8(1,656)
–
431
(30)
108
(1,101)
356
549
595
(464)
(1,677)(6,581)
7,361(34,966)
1,708(4,155)395
291(1,678)128(2,856)
56
387
1,145
(2,103)
–

–

17

(40)
43
(23)

(1,191)18(26)(35,899)(42,047)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Proceeds From state subsidy
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Payments for lease deposits
Proceeds from collection of lease deposits
Proceeds from guarantee deposits received
Proceeds from deposits received
Purchase of long-term prepaid expenses
Purchase of short-term and long-term investment securities
Proceeds from sales of short-term and long-term investment
securities
Payments of loans receivable
Proceeds from collection of loans receivable
Other payments
Net cash used in investing activities

9

(Millions of yen)
Fiscal year ended

Fiscal year ended

February 20, 2016

February 20, 2017

Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Cash dividends paid
Proceeds from exercise of stock options(4,392)(188)(1)(6,509)1,148(1,504)(188)(4)(7,753)
3,036

Net cash used in financing activities(9,943)(6,414)

(419)

(227)

Net increase in cash and cash equivalents

11,08029,240Cash and cash equivalents at beginning of the year

25,71336,794

Cash and cash equivalents at end of the year

36,794

66,035

Effect of exchange rate changes on cash and cash equivalents

10