Consolidated Financial Statements
For the year ended March 31, 2024

Nitori Holdings Co., Ltd.

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.

Item 5. Financial Information
1. Basis for Preparation of Consolidated Financial Statements
The consolidated financial statements of Nitori Holdings Co., Ltd. (the Company) are prepared in accordance with the“Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements” (Ordinance of the
Ministry of Finance No. 28 of 1976).
2. Change in Fiscal Year-End
In accordance with the resolution to partially amend the Articles of Incorporation at the 50th Annual General Meeting of
Shareholders held on May 19, 2022, the Company changed its fiscal year-end from February 20 to March 31.
Accordingly, the accounting period for the previous consolidated fiscal year is 13 months and 11 days from February 21,
2022 to March 31, 2023.
3. Special Measures to Ensure the Appropriateness of Consolidated Financial Statements, etc.
The Company has taken special measures to ensure the appropriateness of consolidated statements. Specifically, theCompany collects information on accounting standards by joining the Financial Accounting Standards Foundation inorder to establish a system that allows the Company to understand accounting standards properly and adapt to changes
in accounting standards appropriately.
The Company also participates in seminars and training programs organized by the Financial Accounting Standards
Foundation and other institutions.

―1―1. Consolidated Financial Statement, etc.
(1) Consolidated Financial Statements(i) Consolidated Balance Sheets
Previous fiscal year

(Millions of yen)
Current fiscal year

(As of March 31, 2023)(As of March 31, 2024)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

131,928

137,943*1 57,408*1 79,247

112,401
479
7,496
20,641(1)
330,353

101,206
520
6,802
22,018(2)
347,736*2 422,887*2 490,324(219,531)(234,477)*2 203,356*2 255,847

20,792(13,978)

25,531(16,072)

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

6,813
29,773(18,417)

9,458
34,037(20,237)

Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation

11,356
377,009
4,414(2,894)

13,799403,228
4,408(3,163)

Leased assets, net
Right of use assets
Accumulated depreciation
Right of use assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Leasehold interests in land
Other

1,519
15,333(4,203)
11,12938,294649,479

1,244
18,632(6,637)
11,99541,323736,897

19,619
5,267
1,740
6,272
107

17,060
4,128
3,463
6,406
102

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Leasehold deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

33,00531,162*3 39,089*3 42,439

Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation562*2 16,893
30,313
21,765
12,379(72)
120,932
803,417
1,133,771―2―520*2 16,646

30,982
21,513
10,851(72)
122,882
890,942
1,238,679

(Millions of yen)Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings*2 38,459*2 48,294

83,068

107,557

Lease obligations
Accounts payable - other

1,602
24,058

1,895
45,933

Income taxes payable
Contract liabilities

28,351
23,774

20,36629,091

Provision for bonuses
Provision for point card certificates

8,380
11

6,604
11

422
220

318
–

Other

*2 13,419*2 16,264

Total current liabilities

221,769

276,336

Non-current liabilities
Long-term borrowings

57,33030,000

4,598

4,519

228

145

Provision for shareholder benefit program
Provision for loss on business liquidation

Lease liabilities
Provision for retirement benefits for directors(and other officers)
Retirement benefit liability

5,886

5,558

Asset retirement obligations
Other

14,800*2 11,060

14,748*2 11,061

Total non-current liabilities

93,90566,033

315,674

342,370

Shareholders' equity
Share capital

13,37013,370Capital surplus
Retained earnings

30,711
771,743

30,715
841,541

Treasury shares(10,111)(10,113)

Total shareholders' equity

805,714875,513

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

1,769

4,711

(1,829)–Foreign currency translation adjustment
Remeasurements of defined benefit plans

12,479(36)

15,816262

Total accumulated other comprehensive income

12,382

20,790–4

Non-controlling interests
Total net assets
Total liabilities and net assets―3―818,096896,308

1,133,771

1,238,679

(ii) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales

Previous fiscal year
(From February 21, 2022
to March 31, 2023)*1 948,094
469,988

Gross profit(Millions of yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)*1 895,799
439,850

478,106

455,949*2 338,029*2 328,223

140,076

127,725

Interest income
Dividend income

638
275

1,323
521

Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidy income
Vending machine income

853

680

929

542

298
363

180
341

Gain on sales of goods
Other

303
1,097

281
1,477

Total non-operating income

4,760

5,349

Selling, general and administrative expenses
Operating profit
Non-operating income

Non-operating expenses
Interest expenses

401

521

Other

349

176

Total non-operating expenses

751

697

144,085

132,377*3 17*3 1,784

17

1,784

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on change in equity
Provision for loss on business liquidation
Total extraordinary losses*4 139*4 25*5 4,769*5 10,230

61
218

0
–

5,189

10,257

Profit before income taxes

138,913

123,904

Income taxes - current

47,50339,293

Income taxes - deferred(3,720)(1,912)

Total income taxes

43,78337,381

Profit95,12986,523

Profit attributable to owners of parent

95,12986,523―4―

Consolidated Statements of Comprehensive Income
Previous fiscal year
(From February 21, 2022
to March 31, 2023)
95,129(Millions of yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)
86,523

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

542(1,829)

2,941
1,829

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

5,888
151

3,337
298

* 4,751* 8,407

99,881

94,931

99,881

94,931

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent―5―

(iii) Consolidated Statements of Changes in Net Assets
Previous fiscal year (from February 21, 2022 to March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period13,370CapitalsurplusRetainedearnings

26,814

692,768

Treasuryshares(7,771)

Total
shareholders'equity725,181(16,154)(16,154)

95,12995,1293,897(4,949)(4,949)

2,608

6,505

–

3,897

78,975(2,340)80,532

13,37030,711

771,743(10,111)805,714

Accumulated other comprehensive income
Total
Valuation
Foreign
Deferred gains
Remeasureme accumulateddifference on
currency
or losses on
nts of defined
otheravailable-fortranslation
hedgesbenefit plans comprehensiv
sale securities
adjustmente income
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period

1,227

–

6,591

(187)

7,631

Total net
assets732,813(16,154)
95,129(4,949)6,505
542(1,829)

5,888

151

4,751

4,751

542

(1,829)

5,888

151

4,751

85,283

1,769(1,829)12,479(36)

12,382

818,096―6―

Current fiscal year (from April 1, 2023 to March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period13,370CapitalsurplusRetainedearnings

30,711

771,743

Total
shareholders'equityTreasuryshares(10,111)805,714(16,725)(16,725)

86,52386,523

3

(2)

(2)

0

4

–

3

69,797(1)

69,79913,37030,715

841,541(10,113)875,513

Accumulated other comprehensive income
Total
NonValuation
Foreign
Deferred gains
Remeasureme accumulated controlling
difference on
currency
or losses on
nts of defined
otherinterests
available-fortranslation
hedgesbenefit plans comprehensiv
sale securities
adjustmente income
Balance at beginningof period
Changes during
periodDividends ofsurplusProfit attributable toowners of parent
Purchase oftreasury shares
Disposal of treasury
sharesNet changes in
items other thanshareholders' equity
Total changes
during period
Balance at end of
period1,769(1,829)12,479(36)

12,382–

Total net
assets818,096(16,725)
86,523
(2)
4
2,941

1,829

3,337

298

8,407

4

8,411

2,941

1,829

3,337

298

8,407

4

78,211

4,711–

15,816262

20,7904

896,308―7―

(iv) Consolidated Statements of Cash Flows(Millions of yen)
Current fiscal year
(From April 1,2023
to March 31, 2024)

Previous fiscal year
(From February 21, 2022
to March 31, 2023)
Cash flows from operating activities
Profit before income taxes

138,913

123,904

Depreciation
Impairment losses

26,186
4,769

27,111
10,230

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

2,772
(7)

2,559
1

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement
benefits for directors (and other officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for point cardcertificatesInterest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale and retirement of non-current
assetsLoss (gain) on change in equity
Increase (decrease) in provision for loss on businessliquidation
Decrease (increase) in trade receivables

3,874(1,810)

–

(83)

255

124

(3,116)

(0)

(913)
401

(1,844)
521

(929)

(542)

122

(1,759)

61

0

218

–

(39,324)(24,050)

Decrease (increase) in inventories
Increase (decrease) in trade payables(33,301)(414)

12,592
9,184

Increase (decrease) in accounts payable - other
Increase (decrease) in contract liability(4,864)23,79911,935
5,246

Increase (decrease) in accrued consumption taxes
Other, net

1,463
4,235

5,077
9,859

124,202

188,257

1,736
(417)

3,158
(524)

Income taxes paid
Income taxes refund(40,043)
5,919(47,946)647

Net cash provided by (used in) operating activities

91,398

143,593

SubtotalInterest and dividends received
Interest paid

―8―

(Millions of yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)

Previous fiscal year
(From February 21, 2022
to March 31, 2023)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment(5,789)(20,793)

2,502(113,933)

7,193(118,664)

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

17(2,471)

3,263(3,297)(11,989)

–

0

2

(546)

(253)

Proceeds from refund of guarantee deposits
Payments of leasehold deposits

2,010(2,681)

1,395(1,644)

Proceeds from refund of leasehold deposits
Guarantee deposits received

308
12

1,018
26

Refund of guarantee deposits received
Proceeds from deposits received

(247)
957

(231)
411

Repayments of deposits received
Purchase of long-term prepaid expenses

(147)
(762)

(118)
(380)

Loan advances
Proceeds from collection of loans receivable

–
202

(0)
248

Other, net

18

(0)

(132,538)(131,824)

Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings

40,000(35,068)

40,222(43,068)

Proceeds from long-term borrowings
Repayments of lease liabilities

50,000(1,961)–(1,044)Purchase of treasury shares
Dividends paid

(2)
(16,064)(2)(16,713)36,903(20,606)

2,276

1,035

(1,960)(7,801)

Net cash provided by (used in) investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period―9―127,076

125,115*1 125,115*1 117,313

Notes to Consolidated Financial Statements
Significant accounting policies for preparation of consolidated financial statements
1. Disclosure of scope of consolidation(1) Number of consolidated subsidiaries: 37 (31 in the year ended March 31, 2023)
Names of major consolidated subsidiaries:
Nitori Co., Ltd.
SHIMACHU CO., LTD.
Home Logistics Co., Ltd.
NITORI TAIWAN CO., LTD.
NITORI (CHINA) HOLDINGS CO., LTD.
DECO HOME CHINA CO., LTD.
NITORI (SHANGHAI) HOME FURNISHING CO., LTD.
NITORI (SHANGHAI) HOME FURNISHING SALES CO., LTD.
NITORI (Taicang) Trading & Logistics Co., Ltd.
NITORI FURNITURE VIETNAM EPE
Nitori Public Co., Ltd.
HOME DECO CO., LTD.
and 25 other subsidiaries
Six companies were newly included in the scope of consolidation during the year ended March 31, 2024, due to theestablishment of five subsidiaries and the acquisition of all shares of one subsidiary by HOME DECO CO., LTD., aconsolidated subsidiary of the Company. In addition, the Company passed a resolution at its Board of Directors
meeting held on August 30, 2017 to liquidate P.T. NITORI FURNITURE INDONESIA, which is a consolidated
subsidiary of the Company, and said company is currently in the process of liquidation.
(2) Names of major unconsolidated subsidiaries
Not applicable
2. Disclosure about application of equity method(1) Number of associates accounted for using equity method: 1
KATITAS Co., Ltd.
(2) Other specific information if deemed necessary about the application of equity method
Not applicable
3. Disclosure about fiscal year of consolidated subsidiaries
The reporting dates of the following consolidated subsidiaries are different from the balance sheet date.
IKEN CO., LTD. · · · · · · June 30, 2023
NITORI Furniture Co., Ltd. · · · · · · December 20, 2023
NITORI TAIWAN CO., LTD.
NITORI (CHINA) HOLDINGS CO., LTD.
DECO HOME CHINA CO., LTD.
NITORI (SHANGHAI) HOME FURNISHING CO., LTD.
NITORI (SHANGHAI) HOME FURNISHING SALES CO., LTD.
NITORI (Taicang) Trading & Logistics Co., Ltd.
NITORI FURNITURE VIETNAM EPE
Nitori Public Co., Ltd. and 20 other subsidiaries · · · · · · December 31, 2023
As for the consolidated subsidiaries whose reporting dates are not more than three months different from the balance
sheet date, except for IKEN CO., LTD. and NITORI Furniture Co., Ltd., their financial statements as of theirrespective reporting dates have been used for consolidation. Necessary adjustments have been made forconsolidation purposes to reflect any significant transactions that occurred between the reporting dates of respective
subsidiaries and the balance sheet date of March 31, 2024.
―10―

With respect to NITORI Furniture Co., Ltd., since its reporting date is more than three months different from thebalance sheet date, its financial statements based on a provisional settlement of accounts performed as of March 31,
2024 have been used for consolidation.
With respect to IKEN CO., LTD., since its reporting date is more than three months different from the balance sheet
date, its financial statements based on a provisional settlement of accounts performed as of December 31, 2023 havebeen used for consolidation. Necessary adjustments have been made for consolidation purposes to reflect any
significant transactions that occurred between the reporting date and the balance sheet date of March 31, 2024.
4. Disclosure of accounting policies(1) Accounting policy for measuring significant assets(i) Securities
Available-for-sale securities
Securities other than shares, etc. that do not have a market priceStated at fair value based on the market price, etc. as of the balance sheet date (with any unrealized gain or loss
recognized directly in net assets and the cost of securities sold calculated using the gross average method.)
Shares, etc. that do not have a market value
Stated at cost determined by the gross average method.
Investments in investment limited partnerships, which are deemed as securities pursuant to Article 2, paragraph(2) of the Financial Instruments and Exchange Act of Japan, are stated at the net value of equity based on themost recent financial statements available according to the reporting dates set forth in the respective partnershipagreements.
(ii) Inventories
NITORI Business: Stated at cost determined by the moving-average method
SHIMACHU Business: Stated at cost determined by the retail method
A method is adopted in which book value is written down based on any decline in profitability.
(iii) Derivatives
Stated at fair value using the mark-to-market method.
(2) Accounting policy for depreciation/amortization of significant assets(i) Property, plant and equipment (excluding leased assets and right of use assets)
The Company and its consolidated domestic subsidiaries adopt the declining balance method. However, buildings(excluding facilities attached to buildings) acquired on or after April 1, 1998 and facilities attached to buildings
and structures acquired on or after April 1, 2016 are depreciated by the straight-line method. Consolidated overseas
subsidiaries apply the straight-line method to their property, plant and equipment.
The principal useful lives are as follows:
Buildings and structures

5 to 47 years

Machinery, equipment and vehicles

4 to 12 years

Tools, furniture and fixtures

2 to 10 years

The Company and its consolidated domestic subsidiaries depreciate buildings on fixed term leaseholds forbusiness by using the straight-line method over the lease term assuming no residual value. These lease terms are
principally 20 years.
(ii) Intangible assets (excluding leased assets)
Amortized using the straight-line method.
Software for internal use is amortized using the straight-line method over an estimated useful life of 5 years.
(iii) Leased assets
Depreciated to a residual value of zero by the straight-line method using the contract term as the useful life.
Finance lease transactions that do not transfer ownership to the lessee commencing on or before February 20,
2009 are accounted for in a manner similar to the accounting treatment for ordinary rental transactions.
(iv) Right of use assets―11―

Depreciated by the straight-line method over the lesser of the useful life of the asset or the lease term.
(3) Accounting policy for significant provisions(i) Allowance for doubtful accounts
The Company and certain consolidated subsidiaries record the allowance for doubtful accounts based on historicalexperience for general receivables and on an individual assessment of the collectability of the account for doubtfulreceivables.
(ii) Provision for bonuses
The Company and certain consolidated subsidiaries record the provision for bonuses at the amount expected to be
paid to their employees based on actual results during the fiscal year in order to cover the payments to theemployees in the following fiscal year.
(iii) Provision for point card certificates
Customers earn loyalty points by presenting their membership card at the time of purchase. Provision for point
card certificates is recorded at the amount expected to be used by customers in the future.
(iv) Provision for shareholder benefit program
Provision for shareholder benefit program is recognized for future utilization of granted shareholder benefits andrecorded at the amount expected to be used by shareholders in the future based on the historical rate of use ofshareholder benefits.
(v) Provision for retirement benefits for directors and other officers
Provision for retirement benefits for directors and other officers is recorded at the amount required to be paid inaccordance with internal rules if all directors and corporate auditors were to retire at the balance sheet date. The
plans of the Company and its consolidated domestic subsidiaries were abolished in April 2004 and December
2005, respectively, and the recorded amount represents benefits incurred but not yet paid.
(4) Accounting policy for retirement benefits(i) Method of attributing estimated retirement benefits to accounting periods
In calculating projected benefit obligations, the benefit formula basis is used to attribute the estimated amount of
retirement benefits to periods up to the end of the current fiscal year.
(ii) Method of accounting for actuarial gains and losses and prior service costs
Actuarial gains and losses are amortized using the straight-line method over a specific period (mainly 10 years),
which is within the average remaining years of service of the employees at the time of occurrence, from the fiscal
year following the year in which each gain or loss occurs. Prior service costs are amortized using the straight-line
method over a specific period (10 years), which is within the average remaining years of service of the employees
at the time of occurrence.
(5) Accounting policies for significant revenues and expenses
The Group is primarily engaged in the development, manufacture, and sale of furniture, interior goods, and home
improvement products, and its performance obligation is to sell products to its customers. The Group recognizes
revenue for these products primarily upon delivery of products because the customer obtains control over the
products upon delivery, and the performance obligation is deemed to be satisfied. However, applying the alternative
treatment prescribed in Paragraph 98 of the “Implementation Guidance on Revenue Recognition AccountingStandard,” the Group recognizes revenue from domestic sale of products at the time of shipment where control overthe product is temporarily transferred to the courier company, because the period between shipment and delivery is
within a normal period.
The Group offers a point program for its membership customers. Points awarded to customers for product purchaseare identified as performance obligations, and the amount of contract liabilities is calculated by allocating thetransaction price based on the stand-alone selling price calculated in consideration of the expected future expirationof the points and other factors. Contract liabilities are reversed upon recognition of revenue when the points are used
or expired.
The consideration from contracts with customers is usually received within one year from the time the performanceobligation is satisfied, and does not include a significant financial component.
―12―(6) Accounting policy for translating significant foreign currency assets and liabilities into Japanese yen
Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot
exchange rate at the balance sheet date, and translation adjustments are accounted for as profit or loss. Assets andliabilities of consolidated overseas subsidiaries are translated into Japanese yen at the spot exchange rate at thebalance sheet date, whereas their revenue and expenses are translated into Japanese yen at average exchange rates.
Translation adjustments are included in “foreign currency translation adjustment” under net assets.
(7) Accounting policy for hedging(i) Method of hedge accounting
The deferral hedge accounting is applied based on the accounting standard for foreign currency transactions.
(ii) Hedging instruments and hedged items
Hedging instruments: Foreign exchange forward contracts
Hedged items: Trade payables denominated in foreign currencies(iii) Hedging policy
Forward exchange contracts are used only to hedge foreign currency fluctuation risk related to the relevant trade
payables.
(iv) Methods to assess hedge effectiveness
The Group assesses the hedge effectiveness every half year based on internal rules covering derivative transactions.
(8) Accounting policy for goodwill
Goodwill is amortized over a period of 10 years on a straight-line basis.
(9) Scope of cash and cash equivalents in consolidated statement of cash flows
Cash and cash equivalents in the consolidated statement of cash flows consist of cash on hand, bank deposits
payable on demand, and short-term investments with a maturity of three months or less from the date of acquisition,
which are readily convertible into cash and subject to insignificant risk of changes in value.
Significant accounting estimates
Valuation of property, plant and equipment, and intangible assets(1) Amounts recognized in consolidated financial statements
Previous fiscal year
(As of March 31, 2023)
Property, plant andequipment
Intangible assets(excluding goodwill)(Millions of yen)
Current fiscal year
(As of March 31, 2024)

649,479

736,897

13,386

14,101

Goodwill

19,61917,060

Impairment losses

4,769

10,230

The above property, plant and equipment include assets of subsidiaries belonging to the mainland China business,amounting to ¥11,756 million for the year ended March 31, 2023 and ¥ 12,622 million for the year ended March 31,
2024. Goodwill arose from the acquisition of SHIMACHU CO., LTD. to make it a consolidated subsidiary.
In addition, as described in “Notes to Consolidated Financial Statements, Consolidated statements of income *5
Impairment losses,” an impairment loss of ¥3,920 million was recorded for real estate for rent and others in theprevious fiscal year, and an impairment loss of ¥9,419 million was recorded for land and buildings, etc. for store useof the SHIMACHU Business in the current fiscal year.
(2) Information on details of significant accounting estimates of identified items
The Group groups property, plant and equipment, and intangible assets by business type, and identifies an indicationof impairment when operating profit from an asset group has been negative for two consecutive fiscal years or whenother events indicate that the asset group may be impaired. When the Group identifies an indication of impairment
and if the aggregate amount of undiscounted future cash flows from the asset group is less than the carrying amount,the Group reduces the carrying amount to its recoverable amount and recognizes such reduction as an impairment
loss. The Group estimates undiscounted future cash flows based on its business plan, taking account of future―13―uncertainties.
The Group determined that there was an indication of impairment for assets of subsidiaries belonging to the mainland
China business as the profitability of their stores in China lowered mainly due to the effects of the sluggish realestate market, and tested the assets for impairment. As a result of testing, it was determined that the value in use
exceeded the carrying amount, and therefore, the Group recorded no impairment losses. The business plan for the
mainland China business incorporates future growth in number of stores and sales per store as key assumptions.
Concerning such estimates, the development and operation of stores in the mainland China business are new relative
to the domestic business, and if any of the estimates needs to be revised due to changes in future economic conditions
that are uncertain in nature, impairment losses may be recognized in the consolidated financial statements for theyears ending on or after March 31, 2025.
As for the asset group including goodwill of SHIMACHU CO., LTD., the Group determined that there was anindication of impairment due to a discrepancy between the business plan at the time of acquisition and the subsequent
results, and assessed whether impairment losses should be recognized. As a result of the assessment, the Group
recorded no impairment loss because the total amount of undiscounted future cash flows exceeded the carrying
amount. If any of the estimates needs to be revised due to deterioration in sales per store as a result of factors
including changes in future economic conditions that are uncertain in nature, impairment losses may be recognizedin the consolidated financial statements for the year ending on March 31, 2025.
Changes in accounting policies
Application of Implementation Guidance on Accounting Standard for Fair Value Measurement
The Group has applied the “Implementation Guidance on Accounting Standard for Measurement of Fair Value” (ASBJ
Guidance No. 31, June 17, 2021; hereinafter the “Fair Value Measurement Guidance”) from the beginning of the year
ended March 31, 2024, and will prospectively apply the new accounting policies stipulated by the Fair Value
Measurement Guidance in accordance with the transitional treatment provided in Paragraph 27-2 of the Fair Value
Measurement Guidance. The above, however, does not affect the consolidated financial statements.
Accounting standards issued but not yet effective“Accounting Standard for Current Income Taxes” and other standards“Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022)“Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022)“Implementation Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October28, 2022)(1) Overview
These stipulate the classification of income taxes when applied to other comprehensive income and the treatment oftax effects related to the sale of shares in subsidiaries, etc. when the group tax sharing system is applied.
(2) Scheduled date of application
The accounting standards and implementation guidance are scheduled to be applied from the beginning of the year
ending March 31, 2025.
(3) Impact of applying the accounting standards, etc.
The impact of applying the “Accounting Standard for Current Income Taxes” and other standards on the consolidated
financial statements is currently under evaluation.

―14―

Changes in presentation
Consolidated statements of cash flows“Increase (decrease) in accounts payable – other,” which was included in “other, net” under “cash flows from operating
activities” for the year ended March 31, 2023, has been separately presented from the year ended March 31, 2024 due
to its increased importance in terms of amount. To reflect this change in presentation, the consolidated financial
statements for the year ended March 31, 2023 have been reclassified. As a result, ¥(628) million included in “other, net”
in “cash flows from operating activities” in the consolidated statement of cash flows for the year ended March 31, 2023
has been reclassified as “increase (decrease) in accounts payable - other” of ¥(4,864) million and “other, net” of ¥4,235
million.
Consolidated balance sheets*1
The amount of notes and accounts receivable - trade arising from contracts with customers is presented in “Notes toConsolidated Financial Statements, Revenue recognition 3. (1) Balance of receivables and contract liabilities arisingfrom contracts with customers, etc.”*2

Assets pledged as collateral are as follows:(Millions of yen)

Buildings and structures
Guarantee deposits
Total

Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

3,388

3,163

39

38

3,428

3,202

Liabilities corresponding to the above assets pledged as collateral are as follows:(Millions of yen)Previous fiscal year
(As of March 31, 2023)
Notes and accounts payable - trade41

40

Other (current liabilities)

102

99

Other (non-current liabilities)
合計*3

Current fiscal year
(As of March 31, 2024)

1,315

1,197

1,459

1,337

Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

22,291

21,443

Investments in associates are as follows:(Millions of yen)

Investment securities (equity
securities)―15―

Consolidated statements of income*1 Revenue from contracts with customers
Net sales presented are not disaggregated between revenues arising from contracts with customers and otherrevenues. The amount of revenue from contracts with customers is presented in “Notes to Consolidated Financial
Statements, Segment information, etc. 3. Information about net sales, profit (loss), assets and other items byreportable segment.”*2

The major components of selling, general and administrative expenses are as follows:(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)*3

Current fiscal year
(From April 1, 2023
to March 31, 2024)

Customer delivery expenses

37,93531,873Advertising expenses

20,32821,381

Salaries, allowances and bonuses

89,96989,395

Provision for bonuses

12,1699,939

Retirement benefit expenses

2,203

1,815

Rent expenses

51,707

48,779Depreciation and amortization

22,272

22,078Outsourcing expenses

19,814

18,613

Breakdown of gain on sale of non-current assets is as follows:(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)
Buildings and structures

1

380

Machinery, equipment and vehicles

445

Tools, furniture and fixtures

9

15

Land
Property, plant and equipment andothersIntangible assets and others

–

1,343

0

–

0

–

17

1,784

合計

*4

Current fiscal year
(From April 1, 2023
to March 31, 2024)

Breakdown of loss on sale and retirement of non-current assets is as follows:(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Current fiscal year
(From April 1, 2023
to March 31, 2024)

Loss on retirement
Buildings and structures

44

13

Machinery, equipment and vehicles

28

0Tools, furniture and fixtures
Property, plant and equipment andothersIntangible assets and others

2

5

–

2

35

–

0

–

Loss on sale
Buildings and structures
Machinery, equipment and vehicles

0

4

Land

28

–

139

25

Total

―16―

*5

Impairment losses
Previous fiscal year (from February 21, 2022 to March 31, 2023)
Region

Use

Class

Store
Japan

Real estate for rent and others
Other

Mainland China

U.S.A.

Impairment loss
(Millions of yen)

Buildings and structures,and others
Buildings

225
3,920

Other
Buildings and structures,and others

Store

Store and headquarters

13
285

Right of use assets

253

Right of use assets

67

Buildings and structures,and others

3

The Group groups its assets by business type. Impairment losses were recognized for some of the Group’s stores taking
into account its decisions to close them or their decreased profitability.
For real estate for rent and others, following the decision to demolish and remove some of the buildings, the carrying
amount was reduced to the recoverable amount, and such reduction was recorded as impairment losses under
extraordinary losses. The calculation was made with the net selling price as zero due to the decision to demolish thebuildings.
Current fiscal year (from April 1, 2023 to March 31, 2024)(1) NITORI Business
Region
Japan

Use

Class

Impairment loss
(Millions of yen)

Buildings and structures,and others
Software and others
Buildings and structures,and others

Store
Other

Mainland China

Store

U.S.A.

Store and headquarters

Right of use assets

Region

Use

Class

Japan

Store

Land and buildings,
and others

412
7
391
0

(2) SHIMACHU BusinessImpairment loss
(Millions of yen)
9,419

The Group groups its assets by business type. Impairment losses were recognized for some of the Group’s stores taking
into account its decisions to close them or their decreased profitability. The recoverable amount is measured at thehigher of the value in use or the net selling price. Net selling price is calculated by deducting the estimated cost of
disposal from the fair value of the asset group. The value in use is calculated by discounting the estimated future cash
flows to the present value. Regarding the discount rate used in such calculation, certain consolidated subsidiaries
obtained advice from corporate valuation experts, as necessary, on the logic of the calculation.

―17―

Consolidated statements of comprehensive income* Notes regarding reclassification adjustments and tax effects relating to other comprehensive income(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Current fiscal year
(From April 1, 2023
to March 31, 2024)

779

4,241

–

(0)

Valuation difference on available-for-salesecurities
Amounts arising during period
Reclassification adjustments
Amount before income tax effect

779

4,240

Income tax effect
Valuation difference on available-forsale securities
Deferred gains or losses on hedges(237)(1,298)

542

2,941

(2,637)

2,637(2,637)

2,637

807

(807)

(1,829)

1,829

5,888

3,337

Amounts arising during period

128

520

Reclassification adjustments

37

(89)

Amounts arising during period
Amount before income tax effect
Income tax effect
Deferred gains or losses on hedges
Foreign currency translation adjustment
Amounts arising during period
Defined retirement benefit plans

Amount before income tax effect

166

430

Income tax effect

(15)

(132)

Defined retirement benefit plans

151

298

Total other comprehensive income (loss)

4,751

8,407

―18―

Consolidated statements of changes in net assets
Previous fiscal year (from February 21, 2022 to March 31, 2023)
1. Class and total number of issued shares and treasury shares(Shares)
At beginning of period

Increase

Decrease

At end of period

Issued shares
Common stock

114,443,496––

114,443,496

Total

114,443,496––

114,443,496

Common stock(Notes 1, 2, and 3)

1,521,865

300,164

390,268

1,431,761

Total

1,521,865

300,164

390,268

1,431,761

Treasury shares

Notes:

1.

The increase of 300,164 treasury shares of common stock consists of an increase of 164 shares due to the purchase ofshares less than one unit and an increase of 300,000 shares due to an additional contribution to the “Stock Benefit Trust(J-ESOP)” as resolved at the Board of Directors meeting on January 11, 2023.

2.

The decrease of 390,268 treasury shares of common stock consists of a decrease of 90,268 shares due to the exercise of“Stock Benefit Trust (J-ESOP)” as resolved at the Board of Directors meeting on December 20, 2011, and a decrease of
300,000 shares due to an additional contribution to the “Stock Benefit Trust (J-ESOP)” as resolved at the Board of Directors
meeting on January 11, 2023.

3.

The number of treasury shares at the end of the period includes 387,454 shares held by Custody Bank of Japan, Ltd. (Trust
Account E), which was set up upon the introduction of the “Stock Benefit Trust (J-ESOP).”

2. Stock acquisition rights
Not applicable.
3. Dividends(1) Dividends paid
Resolution

Class of stock

Total amount of
Amount ofdividends
dividends per share(Millions of yen)
(Yen)

Record date

Effective date

Board of Directors
meeting held on
Common stock
7,916
70 February 20, 2022
April 28, 2022
March 31, 2022
(Note 1)
Board of Directors
meeting held on
Common stock
8,256
73
August 20, 2022
October 18, 2022
September 30, 2022
(Note 2)
Notes: 1. The total amount of dividends with a record date of February 20, 2022 includes dividends of ¥12 million on the Company’s
shares held by Custody Bank of Japan, Ltd. (Trust Account E), which was set up upon the introduction of the “Stock
Benefit Trust (J-ESOP).”2.

The total amount of dividends with a record date of August 20, 2022 includes dividends of ¥6 million on the Company’s
shares held by Custody Bank of Japan, Ltd. (Trust Account E), which was set up upon the introduction of the “Stock
Benefit Trust (J-ESOP).”(2) Dividends with a record date in the previous fiscal year but an effective date in the following fiscal year
Resolution

Class of stock

Board of Directors
meeting held on May
9, 2023

Common
stock

Note:

Total amount ofdividends(Millions of yen)

Source ofdividends

Amount ofdividends per
share (Yen)8,278

Retainedearnings

73

Record date

Effective date

March 31, 2023

June 5, 2023

The total amount of dividends includes dividends of ¥28 million on the Company’s shares held by Custody Bank of Japan, Ltd.
(Trust Account E), which was set up upon the introduction of the “Stock Benefit Trust (J-ESOP).”―19―

Current fiscal year (from April 1, 2023 to March 31, 2024)
1. Class and total number of issued shares and treasury shares(Shares)
At beginning of period

Increase

Decrease

At end of period

Issued shares
Common stock

114,443,496––

114,443,496

Total

114,443,496––

114,443,496

Common stock(Notes 1, 2, and 3)

1,431,761

137

260

1,431,638

Total

1,431,761

137

260

1,431,638

Treasury shares

Notes:

1.

The increase of 137 treasury shares of common stock is due to the purchase of shares less than one unit.

2.

The decrease of 260 treasury shares of common stock is due the disposal of treasury shares in accordance with theperformance-based stock compensation system for Directors of the Company as resolved at the Board of Directors meetingon May 10, 2023.

3.

The number of treasury shares at the end of the period includes 387,454 shares held by Custody Bank of Japan, Ltd. (Trust
Account E), which was set up upon the introduction of the “Stock Benefit Trust (J-ESOP).”

2. Stock acquisition rights
Not applicable.
3. Dividends(1) Dividends paid
Resolution

Class of stock

Total amount of
Amount ofdividends
dividends per share(Millions of yen)
(Yen)

Record date

Effective date

Board of Directors
meeting held on
Common stock
8,278
73
March 31, 2023
June 5, 2023
May 9 , 2023
(Note 1)
Board of Directors
meeting held on
Common stock
8,504
75 September 30, 2023 December 5, 2023
November 10, 2023
(Note 2)
Notes: 1. The total amount of dividends includes dividends of ¥28 million on the Company’s shares held by Custody Bank of Japan,
Ltd. (Trust Account E), which was set up upon the introduction of the “Stock Benefit Trust (J-ESOP).”2.

The total amount of dividends includes dividends of ¥29 million on the Company’s shares held by Custody Bank of Japan,
Ltd. (Trust Account E), which was set up upon the introduction of the “Stock Benefit Trust (J-ESOP).”(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution

Class of stock

Board of Directors
meeting held on May
14, 2024

Common
stock

Note:

Total amount ofdividends(Millions of yen)

Source ofdividends

Amount ofdividends per
share (Yen)8,164

Retainedearnings

72

Record date

Effective date

March 31, 2024

June 4, 2024

The total amount of dividends includes dividends of ¥27 million on the Company’s shares held by Custody Bank of Japan, Ltd.
(Trust Account E), which was set up upon the introduction of the “Stock Benefit Trust (J-ESOP).”―20―

Consolidated statements of cash flows*1 Reconciliation of ending balance of cash and cash equivalents with account balances on the consolidated balance
sheets(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Current fiscal year
(From April 1, 2023
to March 31, 2024)

Cash and deposits
Time deposits with maturity over 3
months131,928

137,943(6,812)(20,630)

Cash and cash equivalents

125,115

117,313

LeasesAs lessee
1. Finance lease transactions
Finance lease transactions that do not transfer ownership(i)

The components of leased assets
Mainly store buildings.

(ii)

Depreciation method of leased assets

The details are as stated in Significant accounting policies for preparation of consolidated financial statements “4.
Disclosure of accounting policies (2) Accounting policy for depreciation/amortization of significant assets.”
Finance lease transactions that do not transfer ownership to the lessee commencing on or before February 20, 2009 are
accounted for in a manner similar to the accounting treatment for ordinary rental transactions. The information onthese lease transactions is omitted because it is insignificant.
2.

Operating lease transactions
Future minimum lease payments under non-cancelable operating leases(Millions of yen)Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

Due within 1 year

7,074

6,658

Due after 1 year

71,64264,019Total

78,71670,677

As lessor
Operating lease transactions
Future minimum lease payments to be received under non-cancelable operating leases(Millions of yen)Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

Due within 1 year

1,508

1,391

Due after 1 year

5,752

3,812

Total

7,260

5,204

―21―

Financial instruments
1. Status of financial instruments(1) Policies on financial instruments
The Group raises necessary funds based on capital investment plans and cash flow plans, mainly through borrowings
from financial institutions. The Group utilizes derivative financial instruments only to manage risks described below
and does not enter into such transactions for speculative trading purposes.
(2) Types of financial instruments, related risks, and risk management
Trade receivables, such as notes and accounts receivable - trade are exposed to customer credit risk, but the collection
period is short, and the historical bad debt ratio is low. The Group manages the credit risk by monitoring due dates andoutstanding balances for each customer and makes efforts to promptly collect receivables from customers with poor
credit standing.
Securities and investment securities with market values are exposed to market risk, and those without market values
are exposed to impairment risk due to the relevant companies’ operating results. The Group periodically monitors thefair values of such financial instruments.
Guarantee deposits and leasehold deposits, which are mostly related to leases on stores, are exposed to the credit riskof lessors. The Group manages the credit risk by monitoring due dates and outstanding balances for each lessor andmakes efforts to identify and mitigate concerns about collecting deposits from lessors in financial difficulties at an
early stage.
Most of notes and accounts payable – trade, which are trade payables, are due within three months.
Short-term borrowings, long-term borrowing and lease obligations are mainly intended to raise required funding for
capital investments as well as loans and investments.
Derivative transactions are foreign exchange forward contracts entered into by the Group to hedge foreign currency
risk related to payables denominated in foreign currencies. The Group believes that the risk of counterparty default or
credit risk under derivative transactions is fairly low because counterparties of derivative transactions are limited tofinancial institutions with high credit ratings. The finance department executes and manages derivative transactions
upon approval by person(s) with authority in accordance with internal rules stipulating the authority for eachtransaction.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are based on their quoted market prices. When no quoted market price isavailable, fair value is reasonably estimated. Since various assumptions and factors are reflected in estimating the fairvalue, different assumptions and factors could result in different fair values.

―22―

2. Fair value of financial instruments
The consolidated balance sheet amount (carrying amount on the consolidated balance sheet) and fair value of financial
instruments and their differences are as follows:
Previous fiscal year (as of March 31 2023)
The consolidated balance sheet amount and fair value of financial instruments and their differences as of March 31, 2023
are as follows. Shares, etc. that do not have a market price are not included in the table below (see Note). Notes are omitted
for cash. Notes are also omitted for deposits, notes and accounts receivable - trade, notes and accounts payable - trade,short-term borrowings, accounts payable - other, and income taxes payable as they are settled in a short period of time andtheir fair value approximates their carrying amount.
(Millions of yen)
Consolidated balance
sheet amount

Fair value

Difference(1) Investment securities
Available-for-sale securities

16,036

16,036–

Shares of associates

22,291

68,891

46,599(2) Guarantee deposits

16,893

16,677(216)(3) Leasehold deposits

30,31329,089(1,224)85,535

130,695

45,159100,398

100,476

78

6,201

6,201

–

106,599

106,678

78

Total assets(1) Long-term borrowings (including
current portion of long-termborrowings)(2) Lease obligations (including current
portion of lease obligations)
Total liabilities(*) Shares of associates are those of listed associates accounted for by the equity method, and the difference is due tothe change in market value of such shares.
(Note) Shares, etc. that do not have a market price are not included in “(1) Investment securities, Available-for-salesecurities.” The consolidated balance sheet amounts of such financial instruments are as follows:
Classification(Millions of yen)Previous fiscal year
(As of March 31, 2023)

Unlisted shares
Investments in investment limited
partnerships

330
430

Investments in investment limited partnerships are not subject to fair value disclosure in accordance with
Paragraph 24-16 of the “Implementation Guidance on Accounting Standard for Measurement of Fair Value”(ASBJ Guidance No. 31, June 17, 2021).

―23―

Current fiscal year (as of March 31 2024)
The consolidated balance sheet amount and fair value of financial instruments and their differences as of March 31, 2024
are as follows. Shares, etc. that do not have a market price are not included in the table below (see Note). Notes are omitted
for cash. Notes are also omitted for deposits, notes and accounts receivable - trade, notes and accounts payable - trade,short-term borrowings, accounts payable - other, and income taxes payable as they are settled in a short period of time andtheir fair value approximates their carrying amount.
(Millions of yen)
Consolidated balance
sheet amount

Fair value

Difference(1) Investment securities
Available-for-sale securities

20,237

20,237–

Shares of associates

21,44353,39831,954(2) Guarantee deposits

16,646

16,022(624)(3) Leasehold deposits

30,982

29,232(1,749)89,310118,890

29,57957,33057,201

(128)

6,414

6,414

–

63,744

63,615(128)

Total assets(1) Long-term borrowings (including
current portion of long-termborrowings)(2) Lease obligations (including current
portion of lease obligations)
Total liabilities(*) Shares of associates are those of listed associates accounted for by the equity method, and the difference is due tothe change in market value of such shares.
(Note) Shares, etc. that do not have a market price are not included in “(1) Investment securities, Available-for-salesecurities.” The consolidated balance sheet amounts of such financial instruments are as follows:(Millions of yen)
Current fiscal year
(As of March 31, 2024)

Classification
Unlisted shares
Investments in investment limited
partnerships

330
427

Investments in investment limited partnerships are not subject to fair value disclosure in accordance with
Paragraph 24-16 of the “Implementation Guidance on Accounting Standard for Measurement of Fair Value”(ASBJ Guidance No. 31, June 17, 2021).
3. Redemption schedule of monetary receivables after the balance sheet datePrevious fiscal year (as of March 31, 2023)(Millions of yen)
Due after 5
Due after 1
Due within 1
Due after 10year through 5 years through
year
years
years
10 years
Cash and deposits

131,928–––

Notes and accounts receivable - trade57,408–––

189,337

–

–

–

Total

Guarantee deposits and leasehold deposits are not included in the redemption schedule because the redemption
schedule is difficult to determine.

―24―Current fiscal year (as of March 31, 2024)(Millions of yen)
Due after 1
Due after 5
Due within 1
Due after 10year through 5 years through
year
years
years
10 years
137,943–––

Cash and deposits
Notes and accounts receivable - tradeTotal

79,247–––217,191–––

Guarantee deposits and leasehold deposits are not included in the redemption schedule because the redemption
schedule is difficult to determine.
4. Repayment schedule of short-term borrowings, long-term borrowings and lease obligations after the balance sheets datePrevious fiscal year (as of March 31, 2023)

Short-term borrowings(Millions of yen)
Due after 1 Due after 2 Due after 3 Due after 4
Due after 5
Due within 1
year through 2 years through years through years through
years
year
years
3 years
4 years
5 years
40,000–––––Long-term borrowings

43,06827,33010,00010,00010,000–

Lease obligations

1,602

1,550

1,068

917

577

484

Total

84,67028,88011,068

10,917

10,577484

Current fiscal year (as of March 31, 2024)

Short-term borrowings(Millions of yen)
Due after 1 Due after 2 Due after 3 Due after 4
Due within 1
Due after 5
year through 2 years through years through years through
year
years
years
3 years
4 years
5 years
80,227–––––Long-term borrowings

27,33010,00010,00010,000－－

Lease obligations

1,895

1,380

1,176

754

444

763

Total

109,452

11,38011,176

10,754444763

5. Fair value information by level within the fair value hierarchy
The fair value of financial instruments is classified into the following three levels according to the observability andmateriality of inputs used to measure fair value.
Level 1 fair value: Fair value measured using observable inputs, i.e. quoted prices in active markets for assets or
liabilities that are the subject of the measurement
Level 2 fair value: Fair value measured using observable inputs other than Level 1 inputs
Level 3 fair value: Fair value measured using unobservable inputs.
If multiple inputs are used that are significant to the fair value measurement, the fair value measurement is categorized
in its entirety in the level of the lowest level input that is significant to the entire measurement.
(1) Financial instruments measured at fair value
Previous fiscal year (as of March 31, 2023)
Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Investment securities
Available-for-sale securities

16,036––

16,036

Total assets

16.036––

16,036―25―

Current fiscal year (as of March 31, 2024)
Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Investment securities
Available-for-sale securities

20,237––

20,237

Total assets

20,237––

20,237(2) Financial instruments other than those measured at fair value
Previous fiscal year (as of March 31, 2023)
Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Investment securities
Shares of associates

68,891––

68,891

Guarantee deposits–

16,677–

16,677

Leasehold deposits–

29,089–29,089Total assets

68,89145,766–

114,658–

100,476–

100,476

–

6,201

–

6,201

–

106,678–

106,678

Long-term borrowings(including current portion of
long-term borrowings)
Lease obligations (including
current portion of leaseobligations)
Total liabilities

Current fiscal year (as of March 31, 2024)
Fair value (Millions of yen)
Level 1

Level 2

Level 3

Total

Investment securities
Shares of associates

53,398––53,398

Guarantee deposits–

16,022–

16,022

Leasehold deposits–

29,232–

29,232

Total assets

53,39845,254–

98,653–57,201–

57,201

–

6,414

–

6,414

–

63,615–63,615Long-term borrowings(including current portion of
long-term borrowings)
Lease obligations (including
current portion of leaseobligations)
Total liabilities

Note: A description of the valuation techniques and inputs used in the fair value measurements
Investment securities
Listed shares are measured using prices on the stock exchange. Since listed shares are traded in active markets,their fair value is classified as Level 1.
Guarantee deposits
The fair value of guarantee deposits is based on the present value of the future cash flows, which are adjusted for
credit risk by maturity and discounted at a rate determined by reference to an appropriate index, such as agovernment bond yield. The fair value is classified as Level 2.
―26―

Leasehold deposits
The fair value of leasehold deposits is based on the present value of the future cash flows, which are adjusted for
credit risk by certain period of time and discounted at a rate determined by reference to an appropriate index,
such as a government bond yield. The fair value is classified as Level 2.
Long-term borrowings
The fair value of long-term borrowings is based on the present value of the total of principal and interest
discounted by the interest rate that would be applied to similar new borrowings. The fair value is classified as
Level 2.
Lease obligations
The fair value of lease obligations is based on the present value of the total of principal and interest discounted
by the interest rate that would be applied to similar new leases. The fair value is classified as Level 2.

―27―

Securities
1. Available-for-sale securities
Previous fiscal year (as of March 31, 2023)(Millions of yen)Type

Consolidated balance
sheet amount

Securities whose consolidatedbalance sheet amount exceeds Equity securities
the acquisition cost
Securities whose consolidatedbalance sheet amount does not Equity securities
exceed the acquisition cost
Total
Notes

Acquisition cost

Difference

14,88912,559

2,330

1,147

1,680

(533)

16,036

14,2391,797

1.

“Available-for-sale securities” in the above table do not include unlisted shares (consolidated balance sheet amount of¥330 million) because they do not have market prices.

2.

“Available-for-sale securities” in the above table do not include investments in investment limited partnerships(consolidated balance sheet amount of ¥430 million) because they do not have market prices.

Current fiscal year (as of March 31, 2024)(Millions of yen)Type

Consolidated balance
sheet amount

Securities whose consolidatedbalance sheet amount exceeds Equity securities
the acquisition cost
Securities whose consolidatedbalance sheet amount does not Equity securities
exceed the acquisition cost
Total
Notes:

2.

Acquisition cost

Difference

20,237

14,237

6,000

–

–

–

20,237

14,2376,000

1.

“Available-for-sale securities” in the above table do not include unlisted shares (consolidated balance sheet amount of ¥330
million) because they do not have market prices.

2.

“Available-for-sale securities” in the above table do not include investments in investment limited partnerships(consolidated balance sheet amount of ¥427 million) because they do not have market prices.

Available-for-sale securities sold
Previous fiscal year (from February 21, 2022 to March 31, 2023)
This information is omitted due to its immateriality.
Current fiscal year (from April 1, 2023 to March 31, 2024)
This information is omitted due to its immateriality.

3. Securities for which impairment losses were recognized
No impairment loss was recognized in the year ended March 31, 2023.
No impairment loss was recognized in the year ended March 31, 2024.
In the treatment for impairment loss, impairment loss is recognized in principle when the fair market value at the fiscal
year-end decreased by 50% or more compared with the acquisition cost, and impairment loss is recognized to theextent of the amount considered necessary in light of materiality of the amount, recoverability and other factors when
the fair market value at the fiscal year-end decreased by approximately 30% to 50%.

―28―

Retirement benefits
1. Overview of retirement benefit plans
The Company and certain consolidated subsidiaries have defined benefit corporate pension plans, lump-sum payment
plans, and a defined contribution pension plan as retirement benefit plans. The Company and certain consolidated
subsidiaries may provide to employees upon retirement extra retirement payments, which are not included in the
projected benefit obligations based on actuarial calculation pursuant to the retirement benefit accounting.
The Company established a retirement benefit trust for the lump-sum payment plan in August 2019.
2. Defined benefit plans(1) Reconciliation of beginning and ending balances of projected benefit obligations(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Current fiscal year
(From April 1, 2023
to March 31, 2024)

13,375

13,566

1,667

1,361

51

86

Actuarial gains and losses incurred

(381)

(180)

Retirement benefits paid

(988)

(918)

Projected benefit obligations at
beginning of period
Service cost
Interest cost

Other
(158)
(0)
Projected benefit obligations at end of
13,566
13,914
periodNote: The table above includes amounts under plans to which the simplified method is applied.

(2) Reconciliation of beginning and ending balances of plan assets(Millions of yen)

Plan assets at beginning of period
Expected return on plan assets
Actuarial gains and losses incurred
Contributions from employer

Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Current fiscal year
(From April 1, 2023
to March 31, 2024)

7,955

8, 064

172
(252)
526

161
340
437

Retirement benefits paid

(337)

(281)

Plan assets at end of period

8,064

8 ,722(3) Reconciliation of ending balances of projected benefit obligations and plan assets, net defined benefit liability andnet defined benefit asset recorded in the consolidated balance sheet(Millions of yen)Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

Funded projected benefit obligations

9,535

9,711

Plan assets(8,064)(8,722)

1,470

989

4,031

4,202

5,501

5,192

Retirement benefit liability
Net defined benefit asset

5,886
(384)

5,558
(366)

Net amount of liability and asset
recorded in consolidated balance sheet

5,501

5,192

Unfunded projected benefit
obligations
Net amount of liability and asset
recorded in consolidated balance sheet

Note:

The table above includes amounts under plans to which the simplified method is applied.
―29―

(4) Components of retirement benefit expenses(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Current fiscal year
(From April 1, 2023
to March 31, 2024)

Service cost

1,667

1,361

Interest cost

51

86

Expected return on plan assets
(172)
(161)
Amortization of actuarial gains and37(89)
lossesRetirement benefit expenses for
1,584
1,196
defined benefit plans
Note: The table above includes amounts under plans to which the simplified method is applied.

(5) Remeasurements of defined benefit plans, net of tax
Components of items (before tax effect) recorded in remeasurements of defined benefit plans, net of tax are as
follows:(Millions of yen)Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Current fiscal year
(From April 1, 2023
to March 31, 2024)

Actuarial gains and losses

166

430

Total

166

430

(6) Remeasurements of defined benefit plans
Components of items (before tax effect) recorded in remeasurements of defined benefit plans are as follows:(Millions of yen)

Unrecognized actuarial gains andlosses
Total

Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

(52)

378

(52)

378

(7) Plan assets(i) Major components of plan assets
Plan assets by major category as a percentage of total plan assets are as follows:
Previous fiscal year
(As of March 31, 2023)

Current fiscal year
(As of March 31, 2024)

General account

32 %

31%

Bonds

20

21

Stocks

43

43

Other

5

5

Total
100
100
Note: Total plan assets as of March 31, 2023 and March 31, 2024 include a retirement benefit trust established for a lump- sum
payment plan of 26% and 25%, respectively.

(ii) Determination procedure of expected long-term rate of return on plan assets
In determining the long-term expected rate of return on plan assets, the Company considers the current andprojected asset allocations as well as the current and future expected long-term rates of return on various assetsthat constitute the plan assets.

―30―

(8) Actuarial assumptions
Major actuarial assumptions (presented in weighted average)
Previous fiscal year
(From February 21, 2022
to March 31, 2023)
Discount rate
Expected long-term rate of return onplan assets
Expected rate of salary increase

Primarily 0.8%

Current fiscal year
(From April 1, 2023
to March 31, 2024)
Primarily 1.1%

2.0

2.0

Primarily 4.0

Primarily 4.1

3. Defined contribution plan
The amounts of required contributions to the defined contribution plan for the years ended March 31, 2023 and March
31, 2024 was ¥618 million and ¥619 million, respectively.

―31―

Tax effect accounting
1. Significant components of deferred tax assets and liabilities(Millions of yen)
Current fiscal year
(As of March 31, 2024)

Previous fiscal year
(As of March 31, 2023)
Deferred tax assets:
Accrued enterprise tax and business office taxes

1,753

1,977

Accrued real estate acquisition tax
Provision for bonuses

266

585

2,237

1,710

Provision for point card certificates

42

49

Contract liabilities

635

592

Unrealized gain on sale of inventories

352

378

Deferred gains or losses on hedges

807

–

6,813

7,612

Tax loss carryforwards (Note)
Retirement benefit liability

2,517

2,195

Depreciation and amortization
Provision for retirement benefits for directors and otherofficers
Allowance for doubtful accounts
Impairment losses and penalty for the scrapping andbuilding of outlets
Asset retirement obligations

11,384

12,995

70

44

2

1,475

3,119

4,315

4,909

4,891

Other

12,206

12,265

Subtotal of deferred tax assets

47,34450,865

Valuation allowance for tax loss carryforwards (Note)
Valuation allowance for deductible temporary
differences
Subtotal of valuation allowance(6,813)(7,436)(8,001)(10,063)(14,815)(17,499)

Total deferred tax assets

32,52933,365

Valuation difference on available-for-sale securities(495)(1,689)Construction assistance fund receivables
Asset retirement cost related to asset retirement
obligations
Valuation difference on consolidated subsidiaries(1,130)(1,164)(2,109)(1,836)(5,909)(5,909)Retained earnings of subsidiaries(901)(1,110)

Other

(217)

(141)

Total deferred tax liabilities(10,764)(11,852)

Net deferred tax assets

21,76521,513

Deferred tax liabilities:(Note) Amounts of tax loss carryforwards and related deferred tax assets by carryforward period

Previous fiscal year (as of March 31, 2023)(Millions of yen)
Within 1
year

Over 1year
to 2 years

Over 2years
to 3 years

Over 3years
to 4 years

Over 4years
to 5 yearsOver
5 years

Tax loss carryforwards*

522

311

421

159

392

5,005

6,813

Valuation allowance

(522)

(311)

(421)

(159)

(392)

(5,005)(6,813)

Deferred tax assets

–

–

–

–

–

–

–

*Tax loss carryforwards were calculated by applying the effective statutory tax rate.

―32―

Total

Current fiscal year (as of March 31, 2024)(Millions of yen)
Within 1
year

Over 1year
to 2 years

Over 2years
to 3 years

Over 3years
to 4 years

Over 4years
to 5 yearsOver
5 years

Tax loss carryforwards*

314

508

168

413

498

5,710

7,612

Valuation allowance

(314)

(508)

(168)

(413)

(498)

(5,533)(7,436)

Deferred tax assets

–

–

–

–

–

176

176

Total

*Tax loss carryforwards were calculated by applying the effective statutory tax rate.

2. Reconciliation between the normal effective statutory tax rate and the actual effective tax rate after applying tax effectaccounting
Previous fiscal year (as of March 31, 2023)
The details are omitted as the difference between the normal effective statutory tax rate and the actual effective tax
rate is 5% or less of the normal effective statutory tax rate.
Current fiscal year (as of March 31, 2024)
The details are omitted as the difference between the normal effective statutory tax rate and the actual effective tax
rate is 5% or less of the normal effective statutory tax rate.
Asset retirement obligations
1. Asset retirement obligations recorded on the consolidated balance sheet(1) Overview of the asset retirement obligations
The asset retirement obligations mainly represent restoration obligations under real estate leases and fixed-term landleases for stores and other uses.
(2) Calculation method of the asset retirement obligations
Asset retirement obligations are calculated using the expected period of use, which is mainly the real estate leaseterm or the fixed-term land lease term, and a discount rate of 0.0% to 1.8%.
(3) Changes in total asset retirement obligations

Balance at beginning of period
Increase due to purchase of property, plantand equipment
Adjustments for passage of time
Decrease due to performance of asset
retirement obligations
Decrease due to extinguishment of
performance obligations
Other increase (decrease)
Balance at end of period

Previous fiscal year
(From February 21, 2022
to March 31, 2023)
15,329(Millions of yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)
14,959

829

663

90

80

(311)

(295)

(945)

(408)

(33)

(78)

14,95914,9202. Asset retirement obligations not recorded on the consolidated balance sheet
Under real estate leases other than real estate leases and fixed-term land leases for business purposes, the Group may beunder obligations to restore some premises used as stores when vacating them. However, as the period of use of theleased assets and the possibility of incurring expenses are uncertain, and no relocation is scheduled at this time, asset
retirement obligations cannot be reasonably estimated. Therefore, asset retirement obligations corresponding to suchobligations have not been recorded.

―33―

Real estate for lease, etc.
The Company and certain consolidated subsidiaries own commercial facilities and other properties (including land) toearn rental income in major cities throughout Japan. Certain rental properties are not recognized as rental properties but
as real estate including spaces used as rental properties since the Company and certain consolidated subsidiaries use someof the floor space of these properties.
Consolidated balance sheet amounts, net change during the period, and fair value of those properties are as follows:

Rental properties

Real estate including
spaces used as rental
properties

Notes:

Previous fiscal year
(From February 21, 2022
to March 31, 2023)(Millions of yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)

54,752

61,098

6,346

9,340

61,09870,43862,16868,48859,55573,753

14,197(13,802)73,753

59,951

84,12067,607

Balance at
beginning of
periodConsolidatedbalance sheet
Increase (decrease)amountduring period
Balance at end of
periodFair value at end of period
Balance at
beginning of
periodConsolidated
Increase (decrease)balance sheet
during periodamountBalance at end of
periodFair value at end of period

1.

Consolidated balance sheet amount represents the acquisition cost less accumulated depreciation.

2.

The increase in rental properties during the year ended March 31, 2023 was mainly due to the acquisition of a property inNaka-ku, Nagoya, Aichi Prefecture of ¥4,287 million. The increase in rental properties during the year ended March 31,
2024 was mainly due to the acquisition of a property in Aoba-ku, Sendai, Miyagi Prefecture of ¥6,225 million and theacquisition of a property in Kikusui, Shiraishi-ku, Sapporo, Hokkaido of ¥4,177 million.

3.

The increase in real estate including spaces used as rental properties during the year ended March 31, 2023 was mainly
due to the acquisition of a property in Sengawa, Chofu, Tokyo of ¥17,134 million. The decrease in real estate including
spaces used as rental properties during the year ended March 31, 2024 was mainly due to the reclassification of the use of
the property in Sengawa, Chofu, Tokyo of ¥(17,134) million to other use.

4.

Fair value at the end of period is measured based on certain appraisal values or other indicators reflecting the market value.

Rental income and rental expenses on rental properties and real estate including spaces used as rental properties are as
follows:
Previous fiscal year
(From February 21, 2022
to March 31, 2023)
Rental properties:

Real estate including
spaces used as rental
properties:
Note:(Millions of yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)

Rental income

2,922

3,175

Rental expenses

1,850

1,684

Difference

1,071

1,491

Rental income

11,13810,080Rental expenses

5,458

4,982

Difference

5,680

5,097

Since real estate including spaces used as rental properties includes some of the floor space used by the Company and certain
consolidated subsidiaries for the purposes of providing services and management, the related rental income is not recognized.
Expenses related to the properties (depreciation, insurance, taxes, etc.) are included in rental expenses.

―34―

Revenue recognition
1. Information on disaggregated revenue from contracts with customers
Information on disaggregated revenue from contracts with customers is as stated in “Notes to Consolidated Financial
Statements, Segment information, etc.
2. Basic information in understanding revenue from contracts with customers
Basic information in understanding revenue is as stated in “Notes to Consolidated Financial Statements, Significant
accounting policies for preparation of consolidated financial statements, 4. Disclosure of accounting policies, (5)Accounting policies for significant revenues and expenses.”
3. Reconciliation of satisfaction of performance obligations under contracts with customers and cash flows arising fromsuch contracts, and the amount and timing of revenue expected to be recognized in the next fiscal year and thereafterarising from contracts with customers that existed at the end of the current fiscal year
(1) Balance of receivables and contract liabilities arising from contracts with customers, etc.
(Millions of yen)Previous fiscal year
Receivables from contracts withcustomers (beginning balance)
Notes receivable

Current fiscal year5939,20057,3999

29

57,39979,218Contract liabilities (beginning balance)

24,211

23,774Contract liabilities (ending balance)

23,77429,091

Accounts receivable
Receivables from contracts withcustomers (ending balance)
Notes receivable
Accounts receivable

Receivables arising from contracts with customers are included in “notes and accounts receivable - trade” onthe consolidated balance sheet.
Contract liabilities mainly consist of advances received, and unearned revenue or the amount related to points
granted to customers for product purchase, which is identified as a performance obligation. Such unearned
revenue is calculated by allocating the transaction price based on the stand-alone selling price calculated inconsideration of the expected future expiration of the points and other factors. Contract liabilities are reversed
upon recognition of revenue when the performance obligation is satisfied. The revenue recognized in the years
ended March 31, 2023 and March 31, 2024 that was included in the balance of contract liabilities as of the
beginning of the fiscal year is ¥24,211 million and ¥23,774, respectively.
(2) Transaction price allocated to the remaining performance obligations
Information on transaction price allocated to the remaining performance obligations is omitted since the Group has
no significant contracts with an original expected contractual duration that exceeds one year. In addition,
consideration arising from contracts with customers does not have any significant amounts that are not included in
the transaction price.

―35―

Segment information, etc.

Segment information
1. Overview of reportable segments(1) Determination of reportable segments
Reportable segments of the Group are components for which discrete financial information is available and thatthe Board of Directors regularly reviews to make decisions about resources to be allocated and assess theiroperating results.
The Group consists of the two segments on the basis of its core operating companies, with the “NITORI Business”
and the “SHIMACHU Business” as reportable segments.
(2) Types of products and services that belong to each reportable segment
The “NITORI Business” primarily engages in the development, manufacture and sale of furniture and interior
merchandise.
The “SHIMACHU Business” primarily engages in the sale of furniture, home accessories and home center
goods.
2. Basis of measurement of net sales, profit, assets and other items by reportable segment
The accounting policies of the reportable segments are generally consistent with the description in “Significant
accounting policies for preparation of consolidated financial statements.” The reportable segments’ profit corresponds
to the Group’s operating profit. Intersegment sales and transfers are recorded based on the prices used in transactions
with third parties.
3. Information about net sales, profit, assets and other items by reportable segment
Previous fiscal year (from February 21, 2022 to March 31, 2023)(Millions of yen)
Consolidated
Reconciliationsbalance sheet(Notes 1 and 3)
amount(Note 2)

Reportable segments

NITORI
Business

Net sales:
Store sales
Mail order sales
Other
Revenue from contracts withcustomers
Other revenue (Note 4)

SHIMACHU
Business

Total

690,886
92,192
21,859124,054991
377

814,941
93,183
22,236–––814,941
93,183
22,236804,938

125,423

930,362–

930,362

8,796

8,936

17,732–

17,732

Net sales to external customers

813,734

134,360

948,094–

948,094

Intersegment sales or transfers

8,047

304

8,352

(8,352)－(8,352)634(19,614)

948,094
140,076
1,133,771––

26,186
2,772–

22,291–

117,328

Total
821,782
134,664
956,446
Segment profit
135,329
4,112
139,442
Segment assets
895,865
257,520
1,153,385
Other items:
Depreciation and amortization
21,673
4,513
26,186
Amortization of goodwill
–
2,772
2,772
Investments in entity accounted
22,291–
22,291for using equity method
Increase in property, plant and
113,134
4,193
117,328
equipment and intangible assets
Notes: 1. The reconciliations of segment profit of ¥634 million were intersegment eliminations.
2.

Segment profit was reconciled to operating profit in the consolidated statement of income.

3.

The reconciliations of segment assets of ¥(19,614) million were intersegment eliminations.

4.

Other revenue includes real estate rental income under the Accounting Standard for Lease Transactions.

―36―Current fiscal year (from April 1, 2023 to March 31, 2024)(Millions of yen)
Consolidated
Reconciliationsbalance sheet(Notes 1 and 3)
amount(Note 2)

Reportable segments

NITORI
Business

Net sales:
Store sales
Mail order sales
Other
Revenue from contracts withcustomers
Other revenue (Note 4)
Net sales to external customers

Notes:

Business

Total

657,446
88,544
22,210109,514778
261

766,960
89,32322,471–––

766,960
89,32322,471

768,201

110,554878,756–

878,756

8,634

8,409

17,043–

17,043776,835

118,964

895,799–895,799

Intersegment sales or transfers
Total
Segment profit
Segment assets
Other items:
Depreciation and amortization
Amortization of goodwill
Investments in entity accounted
for using equity method
Increase in property, plant andequipment and intangible assets

SHIMACHU

8,568

299

8,868

(8,868)–785,404
125,075
1,002,045

119,2632,108
250,763904,668
127,184
1,252,808(8,868)541(14,128)

895,799
127,725
1,238,679

22,723
–

4,387
2,559

27,111
2,559––

27,111
2,559

21,443–

21,443–

21,443

119,40212,743

132,146–

132,146

1.

The reconciliations of segment profit of ¥541 million were intersegment eliminations.

2.

Segment profit was reconciled to operating profit in the consolidated statement of income.

3.

The reconciliations of segment assets of ¥(14,128) million were intersegment eliminations.

4.

Other revenue includes real estate rental income under the Accounting Standard for Lease Transactions.

Related information
Previous fiscal year (from February 21, 2022 to March 31, 2023)
1. Information for each product and service(Millions of yen)

NITORI BusinessNet sales to external customers

SHIMACHU Business

813,734

134,360

Total
948,094

2. Information for each geographic area
(1) Net sales
This information is omitted because net sales to external customers in Japan constituted more than 90% of net
sales on the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan constituted more than 90% of
property, plant and equipment on the consolidated balance sheet.
3. Information for each of major customers
This information is omitted because no single external customer accounts for 10% or more of net sales on the
consolidated statement of income.

―37―

Current fiscal year (from April 1, 2023 to March 31, 2024)
1. Information for each product and service(Millions of yen)

NITORI BusinessNet sales to external customers

SHIMACHU Business

776,835

Total

118,964

895,799

2. Information for each geographic area
(1) Net sales
This information is omitted because net sales to external customers in Japan constituted more than 90% of net
sales on the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan constituted more than 90% of
property, plant and equipment on the consolidated balance sheet.
3. Information for each of major customers
This information is omitted because no single external customer accounts for 10% or more of net sales on the
consolidated statement of income.

Disclosure of impairment loss on non-current assets for each reportable segment
Previous fiscal year (from February 21, 2022 to March 31, 2023)(Millions of yen)

NITORI BusinessImpairment losses

SHIMACHU Business

4,716

Total

53

4,769

Current fiscal year (from April 1, 2023 to March 31, 2024)(Millions of yen)

NITORI BusinessImpairment losses

SHIMACHU Business
811

Total

9,419

10,230

Amortization and unamortized balance of goodwill for each reportable segment
Previous fiscal year (from February 21, 2022 to March 31, 2023)(Millions of yen)

NITORI Business

SHIMACHU Business

Total

Amortization

–

2,772

2,772

Balance at end of period–

19,61919,619Current fiscal year (from April 1, 2023 to March 31, 2024)(Millions of yen)

NITORI Business

SHIMACHU Business

Total

Amortization

–

2,559

2,559

Balance at end of period–

17,06017,060Information about gain on bargain purchase for each reportable segment
Not applicable.

―38―

Related parties
Related party transactions
Previous fiscal year (from February 21, 2022 to March 31, 2023)(1) Transactions between the Company filing consolidated financial statements and related parties
Officers and major shareholders (limited to individuals) of the Company filing consolidated financial statements
Category

Name ofcompany orindividual

Capital or
Ratio of
Description ofRelationshipinvestment
voting rights
Locationbusiness orwith the(million
holding
occupation
related partyyen)(held) (%)

Details oftransaction

Transaction
amountAccount(million yen)

Balance at
end ofperiod(millionyen)–

Representative director ofsubsidiary(Held)
Direct:0.04–

Loan of funds(Note 1)–

Short-term
loans
receivable

109–

Mother of
representative
director, Akio
Nitori(Held)
Direct:0.01

Lease ofbuilding

Lease ofbuilding(Note 2)

17

Leaseholddeposits

28

Officer ofsubsidiary

Shigehito
Matsukura

Close relativeof officer

Mitsuko
Nitori

Notes:

1.

The interest rate for the loan of funds was determined based on the market interest rate.

2.

The terms and rent on the building lease transaction were determined based on similar transactions in a nearby area.

––(2) Transactions between consolidated subsidiaries of the Company filing consolidated financial statements and relatedparties
Not applicable.
Current fiscal year (from April 1, 2023 to March 31, 2024)(1) Transactions between the Company filing consolidated financial statements and related parties
Officers and major shareholders (limited to individuals) of the Company filing consolidated financial statements
Category

Officer ofsubsidiary

Close relativeof officer

Notes:Name ofcompany orindividual

Shigehito
Matsukura

Mitsuko
NitoriCapital or
Ratio of
Description ofRelationshipinvestment
voting rights
Locationbusiness orwith the(million
holding
occupation
related partyyen)(held) (%)

–

–

–

–

Representative director ofsubsidiary

Mother of
representative
director, Akio
Nitori(Held)
Direct:0.04(Held)
Direct:0.01–

Lease andpurchase ofbuildings

Balance at
end ofperiod(millionyen)

Details oftransaction

Transaction
amountAccount(million yen)

Collection ofloans
receivable(Note 1)

109

–

–

Receipt ofinterest(Note 1)

3––

Lease ofbuildings(Note 2)2––

Purchase ofbuildings(Note 3)73––

Refund ofleaseholddeposits

28

–

–

1.

The interest rate for the loan of funds was determined based on the market interest rate.

2.

The terms and rent on the building lease transaction were determined based on similar transactions in a nearby area.

3.

The purchase price of the buildings was determined based on the real estate appraisal report.

(2) Transactions between consolidated subsidiaries of the Company filing consolidated financial statements and relatedparties
Not applicable.

―39―Per share information
Previous fiscal year
(From February 21, 2022
to March 31, 2023)
Net assets per share

Current fiscal year
(From April 1, 2023
to March 31, 2024)¥7,239.04

Basic earnings per share
Notes:¥841.90

Net assets per share¥7,931.07

Basic earnings per share¥765.62

1.

Diluted earnings per share is not disclosed because there were no potential shares.

2.

In the calculation of “net assets per share,” the Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E),
which are accounted for as treasury shares in the consolidated financial statements, are excluded from the total number ofissued shares at the end of the period.

3.

Basis for calculation of basic earnings per share is as follows:(Millions of yen unless otherwise stated)
Previous fiscal year
(From February 21, 2022
to March 31, 2023)

Profit attributable to owners of parent

Current fiscal year
(From April 1, 2023
to March 31, 2024)

95,12986,523–－

Profit attributable to common shareholders of parent

95,12986,523

Average number of shares outstanding during the period(Thousand shares)

112,994

113,011

Profit not attributable to common shareholders

Note:

The Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account E), which are accounted for as treasury shares in
the consolidated financial statements, are excluded from the average number of shares outstanding during the period.

Significant subsequent events
Not applicable.

―40―

(v) Annexed consolidated detailed schedules
Annexed consolidated detailed schedule of corporate bonds
Not applicable
Annexed consolidated detailed schedule of borrowings
Category

Balance as ofApril 1, 2023
(million yen)

Balance as ofMarch 31, 2024
(million yen)

Average interest rate(%)

Repayment due

Short-term borrowings

40,00080,2270.2–

Current portion of long-termborrowings

43,06827,3300.2–

Current portion of lease obligations

1,602

1,895

–

–

57,33030,0000.42025 to 2028

4,598

4,519

–

2025 to 2032

146,599

143,971––

Long-term borrowings (excluding
current portion)
Lease obligations (excluding current
portion)
Total
Notes:

1.

The average interest rate represents a weighted-average interest rate applicable to the ending balances of borrowings.

2.

The average interest rate applicable to lease obligations is not disclosed because lease obligations are recorded in the
consolidated balance sheet at the amount before deducting the interest equivalent component included in the total lease
payment.

3.

The repayment schedule of long-term borrowings and lease obligations (excluding current portion) within five years after
the consolidated balance sheet date is as follows:(Millions of yen)Over 1 year
to 2 years

Over 2 years
to 3 years

Over 3 years
to 4 years

Over 4 years
to 5 years

Long-term
borrowings

10,00010,00010,000–

Lease obligations

1,380

1,176

754

444

Annexed consolidated schedule of asset retirement obligations
A schedule of asset retirement obligations is omitted since matters to be stated in the schedule are stated as notes
prescribed in Article 15-23 of the Regulation on Terminology, Forms, and Preparation Methods of Consolidated
Financial Statements.
(2) Other information
Quarterly results for the year ended March 31, 2024
(Millions of yen unless otherwise stated)
First three months

First six months

First nine months

Current fiscal year

Net sales

218,504

416,814663,746

895,799

Profit before income taxes

33,18056,594

100,773

123,904

Profit attributable to owners ofparent

22,91338,043

68,53586,523

Basic earnings per share (yen)202.76336.63606.45765.62First Quarter
Basic earnings per share (yen)Second Quarter

202.76133.87―41―

Third Quarter
269.82

Fourth Quarter
159.17