Trusco Nakayama Corporation
Nonconsolidated Balance Sheet
December 31, 2018
Millions of Yen2018
2017

ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Accounts receivable—trade
Electronically-recorded monetary claims
Merchandise
Deferred tax assets
Other current assets
Allowance for doubtful accounts¥

11,68625,845
1,674
37,004
617
2,008

¥

10,413
24,674
1,341
31,842
661
855

Thousands ofU.S. Dollars*
2018$

LIABILITIES AND EQUITYCURRENT LIABILITIES:
Accounts payable—trade
Other payables
Income taxes payable
Accrued expenses
Deposits received
Other current liabilities

105,362
233,024
15,090333,640
5,567
18,112(2 )Total current liabilities
Total current assets
PROPERTY, PLANT AND EQUIPMENT:Land
Buildings and structures
Machinery, equipment and vehicles
Furniture and fixtures
Construction in progress
TotalAccumulated depreciation
Net property, plant and equipment
INVESTMENTS AND OTHER ASSETS:
Investments in subsidiaries and affiliated companies
Investment securities
Software and software in progress
Security deposits
Deferred tax assets
Deferred tax assets on land revaluation
Other assets
Allowance for doubtful accounts
Total investments and other assets
TOTAL

78,83469,786

Millions of Yen
2018
2017
¥

15,158
3,944
2,734
166
286
23

¥

14,596
3,764
2,234
546
275
16

Thousands ofU.S. Dollars*
2018$

136,672
35,56324,648
1,493
2,579
212

22,311

21,431

201,167

25,00010,000225,408

152
2,106

153
2,099

1,365
18,98727,25812,252245,760

5,022

5,022

45,283

4,710
1

4,710
1

42,46610

1,256
109,648442(358 )(73 )

1,256
102,431690(358 )(71 )

11,321
988,623
3,981(3,223 )(659 )

120,648

113,681

1,087,802¥ 170,217¥ 147,364$ 1,534,729

710,793

29,69756,740
5,981
4,143
5,593
102,154(23,438 )

28,413
41,142
3,153
3,245
12,912
88,865(21,022 )

267,755
511,585
53,92437,35350,433921,050(211,326 )

78,716

67,843

709,724

4,616
1,215
5,894
313
293
158
185
(7 )

4,129
1,571
3,336
291
146
158
111
(7 )

41,622
10,95153,138
2,818
2,641
1,421
1,686
(65 )

12,667

9,735

114,212¥ 170,217¥ 147,364$ 1,534,729

LONG-TERM LIABILITIES:Long-term loans payable
Retirement allowances for directors and the Audit andSupervisory Board members
Deposits received for guarantees
Total long-term liabilities
EQUITY :Common stock
Capital surplus:
Additional paid-in capital
Other capital surplus
Retained earnings:
Legal reserve
UnappropriatedUnrealized gain on available-for-sale securities
Land revaluation difference
Treasury stock
Total equity
TOTAL* The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥110.91 to $1, the approximate
rate of exchange at December 31, 2018.

-2-Trusco Nakayama Corporation
Nonconsolidated Statement of Income
Year Ended December 31, 2018
Millions of Yen
2018
2017
NET SALES

Thousands ofU.S. Dollars*
2018¥ 214,297¥ 195,097$ 1,932,171

COST OF GOODS SOLD

168,805

153,706

1,522,001

Gross profit

45,492

41,391

410,170

SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES

31,128

27,115

280,658

Operating income

14,364

14,276

129,512

31
(45 )
1,856
(1,824 )27(12 )
1,642
(1,679 )280(410 )
16,735(16,449 )(208 )(112 )(1,874 )

(87 )
260

328

(783 )2,350(17 )

194(151 )INCOME BEFORE INCOME TAXES

14,347

14,470129,361

INCOME TAXES :Current
Deferred

4,618
64,24452

41,643
54

4,624

4,296

41,697OTHER INCOME (EXPENSES) :Interest and dividend income
Interest expenses
Purchase discounts
Sales discounts
Loss on sales and disposals of property, plantand equipment
Impairment loss on property, plant andequipment
Other—net
Other income—net

Total income taxes
NET INCOME¥9,723¥10,174

Yen
PER SHARE OF COMMON STOCK :Basic net income
Cash dividends applicable to the year¥ 147.4437.00$87,664

U.S. Dollars*¥ 154.28
39.00$ 1.33
0.33* The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥110.91 to $1, theapproximate rate of exchange at December 31, 2018.

-3-

Trusco Nakayama Corporation
Nonconsolidated Statement of Changes in Equity
Year Ended December 31, 2018

BALANCE, JANUARY 1, 2017
Net income
Cash dividends, ¥58.5 per share
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation difference
Net change in the year
BALANCE, DECEMBER 31, 2017Thousands
Outstanding
Number ofShares ofCommon Stock
65,947

Millions of Yen

CommonStock

Capital Surplus
Additional
Other
Paid-in
CapitalCapitalSurplus

Legal
Reserve

UnappropriatedUnrealized
Gain onAvailable-for-Sale
Securities¥ 5,022¥ 4,710¥ 1,256¥ 94,829¥ 444

Retained Earnings¥1Treasury
Stock

TotalEquity¥¥ (67 )

¥ 105,837(358 )

10,174(2,572)
(2 )

(4 )
246

65,945

5,022

4,710

11,256

Net income
Cash dividends, ¥38.0 per share
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation differenceNet change in the year
BALANCE, DECEMBER 31, 2018

Land
Revaluation
Difference

102,431246

690(358 )(71 )

113,681

(2 )

9,723
(2,506)(2)

9,723(2,506)(248 )
65,945¥ 5,022¥ 4,710¥1¥ 1,256

CommonStockCapital Surplus
Additional
Other
Paid-in
CapitalCapitalSurplus

Legal
Reserve$ 45,283$ 42,466$ 11,321¥ 109,64889¥ 442

10,174(2,572)(4)(248)¥(358 )¥ (73 )¥ 120,648

UnappropriatedUnrealized
Gain onAvailable-for-Sale
Securities

Land
Revaluation
Difference

Treasury
Stock

Total
Equity$ 923,553$ 6,217$ (3,223 )$ (641 )$ 1,024,983

Thousands of U.S. Dollars*

BALANCE, DECEMBER 31, 2017
Net income
Cash dividends, $0.34 per share
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation difference
Net change in the year
BALANCE, DECEMBER 31, 2018$7

Retained Earnings

87,664(22,594 )(20 )23(2,236 )$ 45,283$ 42,466$ 10$ 11,321$ 988,623* The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥110.91 to $1, the approximate rate of exchange at December 31, 2018.

-4-$ 3,981

87,664(22,594)(20)
5(2,236)$ (3,223 )$ (659 )$1,087,802

Trusco Nakayama Corporation
Nonconsolidated Statement of Cash Flows
Year Ended December 31, 2018
Thousands ofU.S. Dollars*
2018

Millions of Yen
2018
2017
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Depreciation and amortization
Increase in allowance for doubtful accounts
Loss on sales and disposals of property, plantand equipment
Impairment loss on property, plant andequipment
Changes in assets and liabilities:
Increase in accounts receivable
Increase in merchandise
Increase in accounts payable
Other—net
Income taxes paid

¥ 14,347¥ 14,470$ 129,361

3,643

2,785

32,850

208

112

1,874

87

783

(1,504 )(5,162 )562(1,148 )(4,104 )(2,489 )(2,786 )1,633(544 )(4,248 )(13,558 )(46,544 )
5,067(10,356 )(37,003 )

6,929

8,933

62,474(13,995 )(3,371 )(487 )(291 )(12,461 )(1,805 )(2,214 )(148 )(126,183 )(30,391 )(4,390 )(2,630 )(18,144 )(16,628 )(163,594 )

15,00010,000(2 )(2,506 )(4 )(2,571 )

135,245
5(20 )(22,595 )

12,492

7,425

112,635(4 )

1(36 )NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS

1,273(269 )

11,479CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR10,413

10,68293,883

CASH AND CASH EQUIVALENTS, END OF YEAR

¥ 11,686¥ 10,413$ 105,362

Net cash provided by operating activities
INVESTING ACTIVITIES:
Purchase of property, plant and equipment
Purchase of intangible assets
Increase in investment in affiliated company
Other—net
Net cash used in investing activities
FINANCING ACTIVITIES:
Proceeds from long-term loans payable
Proceeds from sales of treasury stock
Repurchase of treasury stock
Dividends paid
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS* The translations of Japanese yen amounts into U.S. dollar amounts have been made at the rate of ¥110.91 to $1, theapproximate rate of exchange at December 31, 2018.