Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy
between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results
for the Six Months Ended August 20, 2018
[Japanese GAAP]
September 26, 2018
Nitori Holdings Co., Ltd.
Company name:
Stock exchange listing: Tokyo,Sapporo
Code number:
9843
URL:
http://www.nitorihd.co.jp/
Representative:
Toshiyuki Shirai
President and Chief Operating Officer
Contact:
Fumiki Takeda
General Manager,Accounting and Finance DivisionPhone:
03-6741-1204
Scheduled date of filing quarterly securities report:
October 02, 2018
Scheduled date of commencing dividend payments:
October 23, 2018
Availability of supplementary briefing material on quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended August 20, 2018 (February 21, 2018 to August 20, 2018)(1) Consolidated Operating Results (Cumulative)(% indicates changes from the previous corresponding period.)
Net income attributable
Net sales
Operating income
Ordinary income
to owners of parent
Million yen%
Million yen%
Million yen%
Million yen%Six months ended
August 20, 2018
301,694
6.3
55,89016.1
56,75916.7
37,9588.3
August 20, 2017
283,947
11.5
48,142(2.1)
48,640(2.4)
35,033
6.7(Note) Comprehensive income:Six months ended August 20, 2018:¥37,306 million [25.4%]
Six months ended August 20, 2017:¥29,760 million [125.5%]
Net incomeper share
Six months ended
August 20, 2018
August 20, 2017

Diluted net income pershareYen

Yen

338.71
313.69337.43311.99(2) Consolidated Financial Position
Total assets
As ofAugust 20, 2018
February 20, 2018
(Reference) Equity:

Net assets

Million yen

577,858
550,507
As of August 20, 2018:
As of February 20, 2018:

Equity ratio

Million yen¥¥

475,706
441,668
475,173 million
440,991 million

―1―%

82.2
80.1

2. Dividends
Annual dividends
1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Yen

Yen-

47.00

92.00

-

50.00

97.00

Fiscal year ended February 20, 2018-45.00Fiscal year ending February 20, 2019-47.00Fiscal year ending February 20, 2019
(Forecast)Year-endTotalNo(Note) Revision to the forecast for dividends announced most recently:

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 20, 2019(February 21, 2018 to February 20, 2019)(% indicates changes from the previous corresponding period.)
Net income
Net income
Net sales
Operating income
Ordinary income
attributable toper shareowners of parent%

Million yen%

Million yen%

Yen

Full year
614,000
7.399,0006.0(Note) Revision to the financial results forecast announced most recently:

Million yen%

Million yen

100,000
No

5.4

68,0005.9606.26* Notes:(1) Changes in significant subsidiaries during the six months ended August 20, 2018(changes in specified subsidiaries resulting in changes in scope of consolidation):
New(Company name: (Company name: Exclusion:-No(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:))
Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
August 20, 2018:
114,443,496 shares
February 20, 2018:
114,443,496 shares2) Total number of treasury shares at the end of the period:
August 20, 2018:
2,280,538 shares
February 20, 2018:
2,485,358 shares
3) Average number of shares during the period:
Six months ended August 20, 2018:
Six months ended August 20, 2017:

112,068,726 shares
111,684,026 shares*Quarterly financial results reports are not required to be subjected to quarterly reviews.
*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 reasonableassumptions to the company. And we don’t commit to achieve these forecasting numbers. Actual results may differ from theseforecasts by a variety of reasons.

―2―Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets(Million yen)
As of February 20,2018

As of August 20,2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade63,33922,45886,31921,868Merchandise and finished goods
Work in process

49,69056

45,247349

Raw materials and supplies
Deferred tax assets

2,985
5,309

2,860
4,801

Other

20,191

21,715

Total current assets

164,031

183,162

Buildings and structures, net
Land107,258
167,153

105,738
170,427

Other, net

16,90321,042

Total property, plant and equipment

Non-current assets
Property, plant and equipment

291,315

297,208

Intangible assets

13,887

16,302

Investments and other assets
Investment securities

26,472

26,310Long-term loans receivable
Guarantee deposits

804
14,813802
14,142

Lease deposits
Deferred tax assets

21,8805,447

22,331
5,607

Other
Allowance for doubtful accounts

11,854(0)

11,989(0)Total investments and other assets

81,273

81,184386,476

394,695

550,507577,858

Notes and accounts payable - trade
Short-term loans payable19,607
2,000

16,4572,624

Lease obligations
Accounts payable - other187
18,323

187
12,098

Income taxes payable
Provision for bonuses

17,3993,395

19,917
3,658

Provision for point card certificates
Provision for special benefits to shareholders

1,625
290

3,012
174

Asset retirement obligations
Other

4
20,592

2
19,385

Total current liabilities

83,42577,518

Total non-current assets
Total assets
Liabilities
Current liabilities―3―

(Million yen)
As of February 20,2018

As of August 20,2018

Non-current liabilities
Long-term loans payable

8,000

7,030

Lease obligations
Deferred tax liabilities

2,143
4

2,049
0

Provision for directors' retirement benefits
Net defined benefit liability

228
2,713

228
2,842

Asset retirement obligations
Other

4,950
7,373

5,196
7,284

Total non-current liabilities

25,413

24,632

108,839

102,151

Shareholders' equity
Common stock

13,37013,370Capital surplus
Retained earnings

18,232415,108

19,720447,746

Total liabilities
Net assets

Treasury stock(8,640)(7,930)Total shareholders' equity

438,072

472,906

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

796(704)934-

Foreign currency translation adjustment
Remeasurements of defined benefit plans

3,105(279)

1,592(260)

Total accumulated other comprehensive income

2,918

2,266

677

533

441,668

475,706

550,507577,858

Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets―4―Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income (For the six months)(Million yen)
For the six months
ended August 20,2017

For the six months
ended August 20,2018

Net sales
Cost of sales

283,947
131,061

301,694
136,018

Gross profit

152,885

165,676

Selling, general and administrative expenses

104,743

109,786

Operating income

48,14255,890

212
27

248
28-

151
16

Vending machine income
Gain on sales of goods

120
165

117
193

Other

224

339

Total non-operating income

749

1,095

24

51

7
195

-

Other

23

174

Total non-operating expenses

251

225

48,64056,759

86

45
3,819

6-

Penalty income
Settlement received-

16
24

Other

21-

3,89554

Loss on change in equity
Loss on sales and disposal of non-current assets

61167
8Impairment loss
Special retirement expenses

4363550-023

Non-operating income
Interest income
Dividend income
Equity in net income of affiliates
Foreign exchange gains

Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange losses

Ordinary income
Special gains
Gain on sales of non-current assets
Gain on reversal of subscription rights to shares
Gain on sales of shares of subsidiaries and associates

Total special gains
Special losses

OtherTotal special losses

854

200

Income before income taxes

51,681

56,613

Income taxes

16,647

18,654

Net income

35,03337,958Net income attributable to owners of parent

35,03337,958―5―

Quarterly Consolidated Statements of Comprehensive Income (For the six months)(Million yen)
For the six months
ended August 20,2017
Net income
Other comprehensive income
Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive incomeComprehensive income

For the six months
ended August 20,2018

35,03337,958(41)(5,084)

137
704

(259)
112

(1,513)19(5,272)(652)

29,76037,306

29,76037,306

Total comprehensive income attributable to:
Owners of parent―6―