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, 2020
[Japanese GAAP]
April 06, 2020
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:
Masaomi Zenji
General Manager, Accounting and Finance Division
Phone:
03-6741-1204
Scheduled date of Annual General Meeting of Shareholders:
May 14, 2020
Scheduled date of commencing dividend payments:
April 23, 2020
Scheduled date of filing annual securities report:
May 15, 2020
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, 2020 (February 21, 2019 to February 20, 2020)(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, 2020
642,273
5.6
107,478
6.6
109,522
6.3
71,395
4.7
February 20, 2019
608,1316.3
100,779
7.9
103,053
8.6
68,1806.2(Note) Comprehensive income:Fiscal year ended February 20, 2020:¥
70,443 million [5.5%]
Fiscal year ended February 20, 2019:¥
66,742 million [23.5%]Net income per
share

Diluted net income
per share

Rate of return on
equityYen%

Yen
Fiscal year ended
February 20, 2020
635.42February 20, 2019
608.05(Reference) Equity in net income of affiliates:

Ordinary income to Operating income tototal assets ratio
net sales ratio

634.0313.5
606.03
14.5
Fiscal year ended February 20, 2020:
Fiscal year ended February 20, 2019:

%

%

16.8
17.6
¥
¥

16.7
16.6
588 million
511 million(2) Consolidated Financial Position
Total assets
As ofFebruary 20, 2020
February 20, 2019
(Reference) Equity:

Net assets

Million yen

683,247
619,286
As of February 20, 2020:
As of February 20, 2019:

Equity ratio

Net assets per share

Million yen

560,861
500,192
560,571 million
499,721 million

¥
¥

%

Yen

82.0
80.7

4,984.29
4,452.99(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
February 20, 2020
February 20, 2019

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the endof period

Million yen

Million yen

Million yen

Million yen

96,316
81,664(41,464)(30,424)(13,862)(11,340)

140,791
100,053―1―

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

Year-end

Total

Total
dividends

Payoutratio(consolidated)

Dividends
to netassets(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen%%

February 20, 2019

-

47.00

-

50.00

97.00

10,89216.0

2.3

February 20, 2020

-

54.00

-

54.00

108.0012,160

17.0

2.3

-

57.00

-

58.00

115.00Fiscal year ending
February 20, 2021

17.1

(Forecast)
3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 20, 2021 (February 21, 2020 to February 20, 2021)(% 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, 2020
Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

318,900(0.8)

57,7003.8

57,9002.4

39,1006.1

347.66653,200

1.7

112,200

4.4

113,300

3.4

75,7006.0

673.08* 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: Yes
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, 2020:
114,443,496 shares
February 20, 2019:
114,443,496 shares2) Total number of treasury shares at the end of the period:
February 20, 2020:
1,975,782 shares
February 20, 2019:
2,221,818 shares
3) Average number of shares during the period:
Fiscal Year ended February 20, 2020:
Fiscal Year ended February 20, 2019:112,358,824 shares
112,128,785 shares―2―

(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 20, 2020 (February 21, 2019 to February 20, 2020)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales
Fiscal year ended
February 20, 2020
February 20, 2019

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

30,41187,071(65.1)(2.8)(1,010)57,370

(6.5)

9,945
65,032(84.7)(3.9)

3,771
56,788(93.4)(12.2)Net income per share
Fiscal year ended
February 20, 2020
February 20, 2019

Diluted net income per share

Yen

Yen

33.55
505.9833.47
504.30(2) Non-consolidated Financial Position
Total assets
As ofFebruary 20, 2020
February 20, 2019
(Reference) Equity:

Net assets

Million yen

438,713441,827
As of February 20, 2020:
As of February 20, 2019:

Equity ratio

Million yen¥¥

414,852
416,955
414,563 million
416,484 million

Net assets per share
%

Yen

94.5
94.3

3,675.62
3,708.07* 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 20,2019

As of February 20,2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade102,345
24,818159,190
27,880

Merchandise and finished goods
Work in process

59,184
153

61,203182

Raw materials and supplies
Other

3,570
20,9694,127
11,010Allowance for doubtful accounts-(4)211,042

263,589

210,723(94,855)

215,908(104,359)

Buildings and structures, net

115,868

111,548

Machinery, equipment and vehicles
Accumulated depreciation

12,435(8,746)

13,511(9,798)

Total current assets
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

3,689

3,713

17,489(9,446)

19,686(10,615)

8,042

9,071

Land

171,342

173,010

Leased assets
Accumulated depreciation

3,697(1,554)

3,776(1,752)

2,143

2,023

Right of use assets
Accumulated depreciation

Leased assets, net

-

5,742
(1,212)Right of use assets, net

-

4,529

Construction in progress

955

3,489

302,041

307,387

7,088

11,391

4,573
7,111

5,984
7,160

83

64

18,857

24,599Investment securities
Long-term loans receivable

26,103778

25,535732

Guarantee deposits
Leasehold deposits

14,26822,90813,98723,756

Deferred tax assets
Other

11,905
11,38013,246
10,429Total property, plant and equipment
Intangible assets
Software
Software in progress
Leasehold right
Other
Total intangible assets
Investments and other assets

Allowance for doubtful accounts

(0)

(18)

Total investments and other assets

87,34487,670408,244419,657

619,286

683,247

Total non-current assets
Total assets―4―

(Million yen)
As of February 20,2019

As of February 20,2020

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable

20,956
2,639

19,7742,787

Lease obligations
Accounts payable - other187
23,752

1,554
22,923

Income taxes payable
Provision for bonuses

19,472
4,206

20,224
4,020

Provision for point card certificates
Provision for special benefits to shareholders

2,014
343

2,076
282

Other

21,444

23,420Total current liabilities

95,016

97,063Long-term loans payable
Lease obligations
Provision for retirement benefits for directors (andother officers)
Retirement benefit liability

6,028
1,956

4,000
6,714

228

228

3,202

1,343

Asset retirement obligations
Other

5,365
7,296

5,673
7,361

Non-current liabilities

Total non-current liabilities

24,07825,322

119,094

122,385

Shareholders' equity
Common stock

13,37013,370Capital surplus
Retained earnings

19,841
472,755

25,074532,471

Total liabilities
Net assets

Treasury stock(7,727)(10,875)

Total shareholders' equity

498,240

560,042

947
901

750
161

Remeasurements of defined benefit plans

(367)

(382)

Total accumulated other comprehensive income

1,481

529

Accumulated other comprehensive income
Unrealized holding gain (loss) on securities
Foreign currency translation adjustment

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

―5―

470

289

500,192

560,861

619,286

683,247

Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)
For the fiscal year
ended February 20,2019

For the fiscal year
ended February 20,2020

Net sales
Cost of sales

608,131
276,709642,273
287,909

Gross profit

331,421354,364

Selling, general and administrative expenses

230,642

246,886

Operating income

100,779

107,478

Interest income
Dividend income

481
37

522
36

Foreign exchange gains
Vending machine income

95
246

247

Gain on sales of goods
Equity in net income of affiliates

390
511

374
588

Other

797

706

2,561

2,476

101

283

185

24
124

Non-operating income

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

286

432

103,053

109,522

Settlement received
Gain on sales of non-current assets

31
10

315

Penalty income
Gain on reversal of subscription rights to shares

49
11

307
3

Total special gains

102

626

Ordinary income
Special gains

Special losses
Compensation for damage

-

85

1,268

630
-

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

368
94

172
99

Penalty for the scrap and build of outlets
Impairment loss

255
653

4,090

Other

24

-

Provision for loss on cancellation
Loss on disaster

Total special losses

2,665

5,078

Income before income taxes

100,490105,069

Income taxes - current
Income taxes - deferred

33,813(1,504)

34,979(1,304)

Total income taxes

32,30933,674

Net income

68,18071,395

Net income attributable to owners of parent

68,18071,395―6―

Consolidated Statements of Comprehensive Income(Million yen)
For the fiscal year
ended February 20,2019
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 20,2020

68,18071,395

150
704

(197)
-

(2,204)
(88)

(740)
(14)

(1,437)(951)

66,74270,44366,74270,443

Total comprehensive income attributable to
Owners of parent―7―

Consolidated Statements of Changes in Net Assets
For the fiscal year ended February 20,2019(Million yen)
Shareholders' equity
Common stock
Balance at February
20,2018
Changes of items
during the year
Dividends ofsurplus
Net income
attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasury
stock

Capital surplus

13,370Retained earnings

18,232

Total shareholders'equityTreasury stock

415,108(8,640)438,072(10,533)(10,533)

68,18068,180

1,608

(4)

(4)

917

2,526

Net changes in items
other than those inshareholders' equity

Total changes of
items during theyear
Balance at February
20,2019-

1,608

57,646912

60,16813,37019,841

472,755(7,727)498,240

Accumulated other comprehensive income
Unrealized holding Unrealized gain (loss) Foreign currency

Balance at February
20,2018
Changes of items
during the year
Dividends ofsurplus
Net income
attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasurystock
Net changes in items
other than those inshareholders' equity

Total changes of
items during theyear
Balance at February
20,2019

gain (loss) on

from hedging

securities

instruments

796

translation
adjustment

(704)

3,105

Total
Subscription
accumulated
Remeasurements ofrights to shares
otherdefined benefit planscomprehensive
income

(279)

2,918

677

Total net assets

441,668(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―8―

For the fiscal year ended February 20,2020(Million yen)
Shareholders' equity
Common stock
Balance at February
20,2019
Changes of items
during the year
Dividends ofsurplus
Net income
attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasury
stock

Capital surplus

13,370Retained earnings

19,841

Treasury stock

472,755(7,727)

Total shareholders'equity498,240(11,679)(11,679)

71,39571,395

5,232(5,012)(5,012)

1,865

7,098

Net changes in items
other than those inshareholders' equity

Total changes of
items during theyear
Balance at February
20,2020-

5,232

59,716(3,147)61,801

13,37025,074532,471(10,875)

560,042

Accumulated other comprehensive income
Unrealized holding gain
(loss) on securities

Balance at February
20,2019
Changes of items
during the year
Dividends ofsurplus
Net income
attributable toowners of parent
Acquisition oftreasury stock
Disposal of treasurystock
Net changes in items
other than those inshareholders' equity

Total changes of
items during theyear
Balance at February
20,2020947

Foreign currencytranslation
adjustment

Total accumulated Subscription rights
Remeasurements ofto shares
other comprehensive
defined benefit plansincome

901

(367)

1,481

470

Total net assets

500,192(11,679)
71,395(5,012)
7,098
(197)

(740)

(14)

(951)

(180)

(1,132)

(197)

(740)

(14)

(951)

(180)

60,669

750

161

(382)

529

289

560,861―9―Consolidated Statements of Cash Flows(Million yen)
For the fiscal year
ended February 20,2019

For the fiscal year
ended February 20,2020

Cash flows from operating activities
Income before income taxes

100,490105,069

Depreciation and amortization
Impairment loss

14,218653

16,561
4,090

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

(0)
836

21
(177)

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for point cardcertificatesInterest and dividend income

400(1,880)

390

63

(519)

(559)

101

283

(511)

(588)

255
-

(307)

-

630

84

(216)

368

172

(2,365)(3,664)(10,014)(2,687)

1,061

219

Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Penalty for the scrap and build of outlets
Penalty income
Provision for loss on cancellation
Loss (gain) on sales and disposal of non-current
assetsLoss (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

509

1,011

Other, net

5,933

1,573

Subtotal

111,892

119,615Interest and dividend income received

569

1,214

Interest expenses paid
Penalty income received

(98)
-

(280)
307

Penalty for the scrap and build of outlets paid
Income taxes paid

(48)
(41,125)(286)(34,112)

Income taxes refund

10,474

9,856

Net cash provided by operating activities

81,66496,316―10―

(Million yen)
For the fiscal year
ended February 20,2019
Cash flows from investing activities
Payments into time deposits

For the fiscal year
ended February 20,2020(1,694)(18,374)

Proceeds from withdrawal of time deposits
Payments for property, plant and equipment

1,679(22,363)2,285(17,482)

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

239(5,788)517(6,528)

(0)

-

38

5

(1,590)(1,032)

Proceeds from collection of guarantee deposits
Payments for stocks of subsidiaries and associates

97
(192)

277
-

(1,134)202(1,157)
346

Proceeds from guarantee deposits received
Proceeds from deposits received

145
203

41
154

Repayments of deposits received
Payments for long-term prepaid expenses

(33)
(122)

(92)
(158)

Payments of loans receivable
Proceeds from collection of loans receivable

(132)
35

(296)
36

Payments for leasehold deposits
Proceeds from collection of leasehold deposits

Other payments

(15)

(5)

(30,424)(41,464)

Increase in short-term loans payable
Decrease in short-term loans payable

287
-

88
(2)

Repayments of long-term loans payable
Repayments of lease obligations(2,003)(187)(2,009)(1,382)

Payments for acquisition of treasury stock
Cash dividends paid

(4)
(10,527)(4,907)(11,663)

Proceeds from sales of treasury shares
Proceeds from exercise of stock options

1,094

5,009
1,006

(11,340)(13,862)

(768)

(250)

39,13040,737

Cash and cash equivalents at beginning of the year

60,923100,053

Cash and cash equivalents at end of the year

100,053

140,791

Net cash used in investing activities
Cash flows from financing activities

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―11―