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 Year Ended February 20, 2019
[Japanese GAAP]
April 08, 2019
Nitori Holdings Co., Ltd.
Company name:
Stock exchange listing: Tokyo,Sapporo
Code number:
9843
URL:
https://www.nitorihd.co.jp/
Representative:
Toshiyuki Shirai
President and Chief Operating Officer
Contact:
Fumiki Takeda
General Manager,Accounting and Finance Division
Phone:
03-6741-1204
Scheduled date of Annual General Meeting of Shareholders:
May 16, 2019
Scheduled date of commencing dividend payments:
April 25, 2019
Scheduled date of filing annual securities report:
May 17, 2019
Availability of supplementary briefing material on annual financial results: Yes
Holding of annual 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 Fiscal Year Ended February 20, 2019 (February 21, 2018 to February 20, 2019)(1) Consolidated Operating Results(% 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%
Fiscal year ended
February 20, 2019
608,1316.3
100,779
7.9
103,053
8.6
68,180
6.2
February 20, 2018572,060
11.5
93,378
8.9
94,8608.3
64,2197.0(Note) Comprehensive income:Fiscal year ended February 20, 2019:¥
66,742 million [23.5%]
Fiscal year ended February 20, 2018:¥
54,037 million [(19.0) %]Net income per
share

Diluted net income
per share

Rate of return on
equityYen%

Yen
Fiscal year ended
February 20, 2019
608.05February 20, 2018574.49(Reference) Equity in net income of affiliates:

Ordinary income to Operating income tototal assets ratio
net sales ratio

606.0314.5
571.63
15.4
Fiscal year ended February 20, 2019:
Fiscal year ended February 20, 2018:

%

%

17.6
18.3
¥
¥

16.6
16.3
511 million
37 million(2) Consolidated Financial Position
Total assets
As ofFebruary 20, 2019
February 20, 2018
(Reference) Equity:

Net assets

Million yen

619,286
550,507
As of February 20, 2019:
As of February 20, 2018:

Equity ratio

Net assets per share

Million yen

500,192
441,668
499,721 million
440,991 million

¥
¥

%

Yen

80.7
80.1

4,452.99
3,938.89(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
February 20, 2019
February 20, 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

81,664
76,840(30,424)(82,751)(11,340)
655

100,053
60,923―1―

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end

Year-end

Total
dividends

Total

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

February 20, 2018

-

45.00

-

47.00

92.00

10,30916.0

2.5

February 20, 2019

-

47.00

-

50.00

97.00

10,892

16.0

2.3

-

54.00

-

54.00

108.00Fiscal year ending
February 20, 2020

17.0

(Forecast)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 20, 2020 (February 21, 2019 to February 20, 2020)(% indicates changes from the previous corresponding period.)
Net income
Net income per
Net sales
Operating income Ordinary income
attributable toshareowners of parent
Six months ended August20, 2019
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen323,200

7.1

53,100(5.0)

54,300(4.3)

36,200(4.6)

322.58643,000

5.7

104,000

3.2

106,000

2.9

71,5004.9

637.13* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes inscope of consolidation): No
New(Company name: )(Company name: Exclusion:)(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) 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(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):February 20, 2019:
114,443,496 shares
February 20, 2018:
114,443,496 shares2) Total number of treasury shares at the end of the period:
February 20, 2019:
2,221,818 shares
February 20, 2018:
2,485,358 shares
3) Average number of shares during the period:
Fiscal Year ended February 20, 2019:
Fiscal Year ended February 20, 2018:

112,128,785 shares
111,785,304 shares―2―

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 20, 2019 (February 21, 2018 to February 20, 2019)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
February 20, 2019
February 20, 2018

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

87,07189,556(2.8)
26.2

57,37061,335(6.5)
46.8

65,032
67,643(3.9)
33.4

56,78864,696(12.2)
40.3

Net income per share
Fiscal year ended
February 20, 2019
February 20, 2018

Diluted net income per share

Yen

Yen

505.98577.85504.30574.98(2) Non-consolidated Financial Position
Total assets
As ofFebruary 20, 2019
February 20, 2018
(Reference) Equity:

Net assets

Million yen

441,827
396,386
As of February 20, 2019:
As of February 20, 2018:

Equity ratio

Million yen¥¥

416,955
369,490
416,484 million
368,813 million

Net assets per share
%

Yen

94.3
93.0

3,708.07
3,289.38* Financial results reports are not subjected to 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 of the company. And we don’t commit to achieve these forecasting numbers. Actual results may differ from these
forecasts by a variety of reasons.

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

As of February 20,2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade63,33922,458102,345
24,818Merchandise and finished goods
Work in process

49,69056

59,184153

Raw materials and supplies
Deferred tax assets

2,985
5,309

3,570
5,518

Other

20,191

20,969Total current assets

164,031

216,561

192,364(85,105)

210,723(94,855)

Buildings and structures, net

107,258

115,868

Machinery, equipment and vehicles
Accumulated depreciation

10,426(6,153)

12,435(8,746)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

4,273

3,689

15,626(9,446)

17,489(9,446)

6,179

8,042

Land

167,153

171,342

Leased assets
Accumulated depreciation

3,697(1,366)

3,697(1,554)

Leased assets, net

2,330

2,143

Construction in progress

4,120

955

291,315

302,041

Software
Software in progress

6,093
543

7,088
4,573

Leasehold right
Other

7,235
15

7,111
83

Total intangible assets

13,887

18,857

Investment securities
Long-term loans receivable

26,472804

26,103
778

Guarantee deposits
Lease deposits

14,813
21,88014,26822,908Deferred tax assets
Other

5,447
11,854

6,386
11,380(0)(0)

Total property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―4―81,273

81,826

386,476402,725

550,507619,286

(Million yen)
As of February 20,2018

As of February 20,2019Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable

19,6072,000

20,956
2,639

Lease obligations
Accounts payable - other187
18,323

187
23,752

Income taxes payable
Provision for bonuses

17,3993,395

19,472
4,206

Provision for point card certificates
Provision for special benefits to shareholders

1,625
290

2,014
343

Asset retirement obligations
Other

4
20,592

21,444

Total current liabilities

83,42595,016

Non-current liabilities
Long-term loans payable

8,000

6,028

Lease obligations
Provision for directors' retirement benefits

2,143
228

1,956
228

Net defined benefit liability
Asset retirement obligations

2,713
4,950

3,202
5,365

Other

7,377

7,296

Total non-current liabilities

25,41324,078108,839

119,094

Common stock
Capital surplus

13,37018,232

13,37019,841Retained earnings
Treasury stock

415,108(8,640)472,755(7,727)

Total shareholders' equity

438,072498,240

796

947

(704)
3,105

901

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Unrealized holding gain (loss) on securities
Unrealized gain (loss) from hedging instruments
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(279)

(367)

Total accumulated other comprehensive income

2,918

1,481

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

―5―

677

470

441,668

500,192

550,507619,286

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended February 20,2018

For the fiscal year
ended February 20,2019

Net sales
Cost of sales

572,060
257,281608,131
276,709

Gross profit

314,778

331,421

Selling, general and administrative expenses

221,400

230,642

Operating income

93,378100,779

Interest income
Dividends income

451
36

481
37

Foreign exchange gains
Vending machine income

249

95
246

Gain on sales of goods
Construction revenue from tenants

356
36

390
-

Equity in net income of affiliates
Gain on forgiveness of debts

37
206

511
-

Non-operating income

Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses

459

797

1,833

2,561

69

101

235
47

185

351

286

94,860103,053

Settlement received
Gain on sales of non-current assets

201

31
10

Penalty income
Gain on reversal of subscription rights to shares

36
49

49
11

Gain on sales of shares of subsidiaries and associates

3,842

-

Total special gains

4,129

102

Loss on disaster
Loss on change in equity

256

1,268
368

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

130
46

94
255

5,417
354

653
-

Ordinary income
Special gains

Special losses

Impairment loss
Special retirement expenses
Other

-

24

Total special losses

6,206

2,665

Income before income taxes

92,783

100,490

Income taxes - current
Income taxes - deferred

30,875(2,310)33,813(1,504)

Total income taxes

28,56432,309Net income

64,21968,180Net income attributable to owners of parent

64,21968,180―6―

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended February 20,2018
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 income
Comprehensive income

For the fiscal year
ended February 20,2019

64,21968,180(87)(11,074)

150
704

862
116

(2,204)(88)(10,182)(1,437)54,037

66,74254,037

66,742

Total comprehensive income attributable to
Owners of parent―7―

Consolidated Statements of Changes in Net Assets
For the fiscal year ended February 20,2018(Million yen)
Shareholders' equity

Balance at February 20,2017

Common stock

Capital surplus

Retained earnings

13,37016,306361,103

Total shareholders'equity(10,188)
380,592(10,273)(10,273)

64,21964,219Treasury stock

Changes of items during the year
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Change in ownership interest ofparent due to transactions with
non-controlling interests
Other

1,859

(3)

(3)

1,552

3,412

66

66
58

58

Net changes in items other than thosein shareholders' equity

Total changes of items during
the year
Balance at February 20,2018

-

1,926

54,004

1,548

57,47913,37018,232415,108(8,640)438,072

Accumulated other comprehensive income

Balance at February
20,2017
Changes of items
during the year
Dividends of surplus
Net income
attributable toowners of parent
Purchase of treasury
stock
Disposal of treasury
stock
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Other
Net changes in items
other than those inshareholders' equity

Total changes of
items during the year
Balance at February
20,2018

Foreign currency Remeasurements of

Unrealized holding

Unrealized gain

gain (loss) on(loss) from hedging

translation

defined benefit

securities

instruments

adjustment

plans

884

10,3692,243

Total accumulated
other

Subscription
rights to shares

Noncontrollinginterests

Total net
assets940

144

394,778

comprehensive
income(396)

13,100(10,273)
64,219
(3)
3,412

66

58
(87)

(11,074)862

116(10,182)

(263)

(144)

(10,590)(87)(11,074)862

116(10,182)

(263)

(144)

46,889

796

(704)

3,105

(279)

2,918

677

-

441,668―8―

For the fiscal year ended February 20,2019(Million yen)
Shareholders' equity
Common stock

Capital surplus

Retained earnings

13,37018,232415,108

Total shareholders'equity(8,640)438,072(10,533)(10,533)

68,18068,180

Balance at February 20,2018
Changes of items during theyear
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes in items otherthan those in shareholders'equityTotal changes of items during
the year
Balance at February 20,2019

Treasury stock

1,608

(4)

(4)

917

2,526

-

1,608

57,646912

60,16813,37019,841

472,755(7,727)498,240

Accumulated other comprehensive income

Balance at February 20,2018
Changes of items during theyear
Dividends of surplus
Net income attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes in items otherthan those in shareholders'equityTotal changes of items during
the year
Balance at February 20,2019

Unrealized

Unrealized gain

holding gain

(loss) fromtranslation(loss) on

hedgingsecurities

instruments

796

Foreign currency(704)

adjustment

3,105

Remeasurements of Total accumulated other

Subscription rights
to shares

defined benefit plans comprehensive income

(279)

2,918

677

Total net
assets441,668(10,533)
68,180
(4)
2,526
150

704

(2,204)(88)(1,437)(206)(1,644)150

704(2,204)(88)(1,437)(206)

58,524

947

-

901

(367)

1,481

470

500,192―9―

Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended February 20,2018

For the fiscal year
ended February 20,2019

Cash flows from operating activities
Income before income taxes

92,783

100,490

Depreciation and amortization
Impairment loss

13,0305,417

14,218622

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

(19)
(355)

(0)
836

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for point cardcertificates
Loss (gain) on sales of shares of subsidiaries andassociates
Interest and dividends income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Penalty for the scrap and build of outlets

202

400

324

390

(3,842)

-

(487)
69

(519)
101

(37)

(511)

46

255

(70)
256

116
368

(866)

(2,365)(3,743)(10,014)

2,544

1,061

(520)
(4,835)509(3,840)99,895102,119

435
(55)

569
(98)

(26)
(30,085)(48)(31,352)

Income taxes refund

6,677

10,474

Net cash provided by operating activities

76,84081,664

Loss (gain) on sales and disposal of non-current assets
Loss (gain) on change in equity
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
SubtotalInterest and dividends income received
Interest expenses paid
Payment of penalty for the scrap and build of outlets
Income taxes paid

―10―

(Million yen)
For the fiscal year
ended February 20,2018
Cash flows from investing activities
Payments into time deposits

For the fiscal year
ended February 20,2019(6,320)(1,694)

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

8,372(60,888)

1,679(22,363)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of short-term and long-term investment
securities
Proceeds from sales of short-term and long-term
investment securities
Proceeds from sales of stocks of subsidiaries andassociates
Payments for guarantee deposits
Proceeds from collection of guarantee deposits

292(3,084)239(5,788)(23,300)

(0)

10

38

4,473

-

(655)
202

(1,590)97(1,696)(192)(1,134)

Proceeds from collection of lease deposits
Proceeds from guarantee deposits received

280
-

202
145

Proceeds from deposits received
Repayments of deposits received

193
(138)

203
(33)

Purchase of long-term prepaid expenses
Payments of loans receivable

(361)
(170)

(122)
(132)

Proceeds from collection of loans receivable
Other payments

38
(11)

35
(15)

Other proceeds

13-(82,751)(30,424)

Increase in short-term loans payable
Repayments of long-term loans payable

(625)

287
(2,003)

Proceeds from long-term loans payable
Repayments of lease obligations

10,000
(187)

(187)

Purchase of treasury stock
Cash dividends paid

(3)
(10,272)(4)(10,527)

1,822
(77)

1,094
-

655

(11,340)

Purchase of stocks of subsidiaries and associates
Payments for lease deposits

Net cash used in investing activities
Cash flows from financing activities

Proceeds from exercise of stock options
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

143

(768)

(5,111)

39,130Cash and cash equivalents at beginning of the year

66,03560,923

Cash and cash equivalents at end of the year

60,923100,053―11―