NITORI Holdings Co., Ltd.
Financial Results Presentation for the FY2021

March 31 , 2022
TSE1st.&Sapporo Code : 9843

Achieved growth both in sales and profit
for the 35th consecutive fiscal year
FY1991

FY2001FY2011

FY2021Results

Results

Results

Results

Compare to
FY1991

Number ofStores

21

73

268

801

38-fold

Net Sales(100 m yen)

175

787

3,310

8,115

46-fold

Ordinary income(100 m yen)

12

71

591

1,418

118-fold

Ordinary income
margin

6.9%

8,115
1,418
7,169

1,384
6,422
1,095

9.1%

17.9%

17.5%

Sales (100 m yen)
Ordinary income (100 m yen)

+10.6pt

6,081
5,720
1,030
5,129
948
4,581 875
4,172
3,876
750

679
3,487
634
3,310
621
3,142
591
2,861 535
474
1,567
1,087 190
130
0.5

43
1

308 489
103 177 19 35
135’68.2 ’82.2 ’88.2 ’93.2 ’97.2 ’00.2 ’04.2 ’06.2 ’10.2 ’11.2 ’12.2 ’13.2 ’14.2 ’15.2 ’16.2 ’17.2 ’18.2 ’19.2 ’20.2 ’21.2 ’22.2

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2

Overview of Consolidated Financial Results（100 million Yen）

FY2021
ActualPrior Period
Comparison

FY2020to salesActualto saleschangeYOY

Net sales

8,115

-

7,169

-

946

113.2%

Gross profit

4,258

52.5％

4,117

57.4％

141

103.4％

SG&A
expenses

2,876

35.4％

2,741

38.2％

135

104.9％

Operatingincome

1,382

17.0％

1,376

19.2％

5

100.4％

Ordinary
income

1,418

17.5％

1,384

19.3％

34

102.5％

967

11.9％

921

12.8％

46

105.0％

Profitattributable toowners of parent

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Summary of Financial Results
by Reporting Segment（100 million Yen）

FY2021

FY2020

Actualto salesActualto sales

Net
sales

6,792

-

7,169

▲376

Ordinary
income

1,385

20.4%

1,384

Net
sales

1,370

-

－

2.4%

－

FY2019Compared
to FY2021

Actualto salesCompared
to FY2021

94.7％

6,422

369 105.8％

1 100.1%

1,095

290 126.5％

1,370

－

－

1,370

－

32

－

－

32

－

NITORI
business

Shimachubusiness
Ordinary
income32

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4

Consolidated ordinary income (YOY)▪Impact of decreasein net sales（100 m Yen）

▪Impact of logistics efficiency
improvement, etc. +90→Improved delivery efficiency, shipping
packaging efficiency, etc▪Home delivery fee income +６→Impact of shipping cost review, etc.

▪Decrease in outsourced labor costs and external
warehouse rental costs due to overtime inventory control▪Decrease in outsourced labor costs due to the shift toin-house call centers▪Decrease due to streamlining of store remodeling

32
1,384

+208

▲229

▪Impact of rising trade costs▪Price reduction impact+96
Others▲97+14
Exchange Improvement
rate impact in gross profit

▲41

1,385
Shimachu
consolidated▪Effects of cost reduction efforts
by consolidating suppliers, etc.

Grossprofitdecrease

1,418▪Including
amortizationof goodwill,
etc.

+50
Logistic
expenses, etc.

Other
impacts▪Inventory Exchange Impact +41▪Purchase Foreign Exchange Impact ▲138

Personnel
expenses▪Decrease in part-timesalaries due to more
efficient store operations

FY2020Ordinary income
NITORI business
Copyright 2022 Nitori Holdings All Rights Reserved

FY2021
Ordinary income
NITORI business■不許複製印刷配布

FY2021
Ordinary
Income5

Gross profit ・ SG&A expenses
SG&A
expenses

Amount

YOY

Ratio tosales

ChangeSG&A
expenses

Amount

YOY

Ratio tosales

ChangePersonnel
expenses

909 114.0%

11.2％+0.1ptOutsourcing
expenses

181

85.3%

2.2％ ▲0.7pt

Rents

464 120.9%

5.7％+0.4ptDepreciation

204 128.4%

2.5% +0.3pt

Shipping anddelivery costs

250

85.6%

3.1％

▲1.0ptAdvertisingexpenses

165

96.3%

2.0％

▲0.4ptCapital investment, etc.

Capital Investment

1,014（100 million Yen）

Gross profit margin ratio

57.4%▲2.1pt+0.6pt▲0.2pt55.7%▲0.0pt(▲1.7pt)▲3.2pt52.5%

Others(▲4.9pt)･FX impact
applied to thepurchase(103.95yen⇒111.16yen)

・FX impact
applied to theinventory･Cost measures suchas product replacement,
etc.+0.2pt･Impact of risingtrade costs ▲0.4pt

FY2020NITORI business
Copyright 2022 Nitori Holdings All Rights Reserved

Shimachu

FY2021NITORI business■不許複製印刷配布

FY2021NITORI Group6

Consolidated Balance Sheets（100 million Yen）

Accounts

20 Feb.
2022

20 Feb.
2021

Change

2,783

3,027

▲243

1,304

1,585

▲281

859

807

52

7,054

6,281

773

Property, plant and equipment

5,604

4,824

779

Investments and other assets

381

368

12

9,838

9,308

529

1,631

2,063

▲431

Accounts payable - trade

397

445

▲47

Short-term loans payable

350

487

▲136

878

391

486

503

20

483

Total liabilities

2,510

2,454

55

Total net assets

7,328

6,853

474

Total liabilities and net assets

9,838

9,308

529

Current assets
Cash and deposits

資
産
の
部

Inventory

Non-Current assets

Total assets
Current liabilities

負
債
の
部

Non-Current liabilities
Long-term loans payable

Major factors on changes

Land +675

Income taxes payable ▲100

Retained earnings +806

Note: The business combination with Shimachu Co., Ltd. was provisionally accounted for in the previous consolidated fiscal year,
but it has been finalized in the consolidated fiscal year 2021.

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Consolidated Cash Flows（100 million Yen）

FY2021
Operatingactivities

資
産
の
部

Investing
Activities

855▲1,199FY2020Change1,508▲1,959▲653
760

Major factors on changes
Profit before income taxes
Income taxes paid
Purchase of property, plant andequipment▲1,015Purchase of shares of subsidiaries▲489

Proceeds from long-term and

Financing
activities

177

303

▲125

short-term borrowings
Repayments of long-term andshort-term borrowings

29

▲5

34

▲137

▲153

15

153

-

153

Cash and cash equivalents
at end of year

1,270

1,254

15

Free cash flow

▲344

▲451

106

Other
Net increase (decrease) incash and cash equivalents

負Increase (decrease) due to債changein fiscal year end ofの部consolidated subsidiaries

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1,417
▲615

1,490
▲1,142

8

Number of stores as of 20 Feb. 2022

J
A
P
A
N

O
V
E
R
S
E
A
S

End of
FY2020Net
increase

End of
FY2021NITORI

450

22

472

EXPRESS

17

5

22

DECOHOME

106

34

140

N plus17

1

18

Shimachu

61

▲5

56

Subtotal

651

57

708

Taiwan35

944

Mainland China

34

12

46

USA

2

0

2

Malaysia011

Subtotal

71

22

93

Total

722

79

801

Copyright 2022 Nitori Holdings All Rights Reserved▪Total at end of period: 801 stores▪Compared to the end of the previous
fiscal year: +79 stores

MainlandChina+12■不許複製印刷配布

Malaysia
+１

Japan
+57

Taiwan+９9Major indicators of management efficiency （1）

G
R
O
U
P

2022.22021.22020.2

2019.22018.2

No.

Indicator

unit

Target1

Return on assets％

Over 15％

×

14.8

18.4

16.8

17.6

18.3

2

Total asset turnover

Times

Over 2

×

0.85

0.94

0.99

1.04

1.10

3

Ordinary income
Margin％Over 10％

○

17.5

19.5

17.1

16.9

16.6

4

Earnings per share¥

Over ¥100○

856.71825.25635.42608.05574.495

Return on equity％

Over 15%

×

14.1

15.5

13.5

14.5

15.4

6

Equity ratio％

Over 60％

○

74.5

76.8

82.0

80.7

80.1

7

Interest coverage

TimesOver 20

○

654

1,465

1,031

998

1,350

8

Sales growth rate％

Over 10％

○

13.2

11.6

5.6

6.3

11.5

9

Ordinary income
growth rate％

Over 10％

×

2.5

27.9

6.3

8.6

8.3

10

Ratio of gross profit
to sales％Over 48％

○

52.5

57.4

55.2

54.5

55.0

11

Ratio of break-evenpoint to sales％

Under 80％

○

63.8

62.6

65.8

65.6

66.5

※ Results of Shimachu Corporation are included from fiscal year 2021.

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10Major indicators of management efficiency （2）
S
A
L
E
O
F
F
U
R
N
I
T
U
R
E
A
N
D
H
O
M
E
F
U
R
N
I
S
H
I
N
G

Indicator

2022.22021.22020.2

2019.22018.2unit

Target12 Sales per tsubo

KOver ¥950K

○

101.9

113.8

105.5

103.4

101.7

13 Stock turnover

Times

Over 9

×

5.4

5.5

5.0

5.3

5.6

14 Operating assets turnover

Times

Over 2.9

○

3.4

3.6

3.4

3.6

3.9

15 Ratio of profit distribution％

Over 20％

○

37.1

33.8

30.3

31.0

30.5

16

Ratio of real estate cost to
gross profit％

Under 25％

○

22.7

18.9

21.2

21.6

21.7

17

Ratio of sales promotion
cost to gross profit％

Under ６％

○

4.3

4.8

5.7

6.2

6.3

18 Labor productivity

M

Over ¥10M

○

2,069

2,271

1,980

1,922

1,875

19 Sales floor per labor

Tsubo

Over 60

×

37.5

35.6

34.8

34.7

34.3

20 tsubo

K

Over 150K

○

19.2

20.6

16.0

16.0

15.5

21 Stock per tsubo

K

Under 90K

○

8.5

8.9

9.5

8.9

8.2

22 Average age of labor

Age

30～35

○

33.5

33.5

33.7

33.6

33.4

〇16 ×６ 〇19 ×3〇15 ×7〇15 ×7〇17 ×5No.

Operating income per

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NITORI Business Topics

Results of 4Q sales（4Q sales YOY by month）
Sales were strong during the period due to a total of two price reduction campaigns to
support consumers' lifestyles. However, due to the impact of repeated declarations of astate of emergency and priority measures to prevent the spread of the disease, sales in
the current fiscal year were 90.9% of the previous year's level at existing stores and93.4% of the previous year's level at all stores.
Sales
Compared to FY2020
Existing
StoresNumbers of Customers
Compared to
FY2019All
StoresExisting
StoresCompared to FY2020
Existing
StoresAverage spend per
customers
Compared to FY2020

All
StoresExisting
StoresAll
Stores

Dec.

89.9％

92.2％

107.3%

88.4％

92.4％

101.7％

99.8％

Jan.

102.5％

105.6%

99.1%

99.1%

104.3%

103.5%

101.2%

Feb.

99.0%

101.9%

109.3%

94.8%

100.4%

104.4%

101.5%

Dec - Feb

96.6%

99.3%

104.9%

93.8%

98.7%

103.0%

100.6%

Total of 4Q

90.9%

93.4%

100.3%

90.1%

94.3%

100.8%

99.0%※ Sales = Sales based on orders

Copyright 2022 Nitori Holdings All Rights Reserved■不許複製印刷配布※ Aggregate Targets ：NITORI・DECOHOME・EC

13

YOY changes in comparable stores※ Sales = Sales based on orders

（％）
115

105

Sales,YOY

102.9

110.4
102.7

102.8

90.9

95
85
（％）
115

No. of Customers , YOY

104.8
105
95

112.8

Average Spend per Customer , YOY

98.2

100.8

101.3

101.8

101.4

100.8
97.9

85
FY2017FY2018FY2019FY202090.1
FY2021※ Aggregate Targets ：NITORI・DECOHOME・EC

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NITORI business sales（Net sales）
NITORI business sales: 679.2 billion yen
Compared to FY2020 ： 94.7%
Compared to FY2019 ：105.8%

Net sales
Store sales(including overseas)（100 million Yen）

6,792

YOY

5,802

93.0%

E-commerce

716

101.5%

B to B
Renovation

103

110.7%

Rent income

75

101.5%

Others94

164.9%

6,792

94.7%

Sales
outside stores

7,169

Amount(including overseas)

Total

Sales composition by region

FY2020

FY2021

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Hokkaido

4.3％▲0.1ptChugoku &Shikoku

7.1％▲0.1ptTohoku5.1％▲0.2ptKyusyu &Okinawa

8.7％+0.0pt

Kanto

28.1％

▲1.2ptEC

10.5％+0.6ptHokuriku &Koshinetsu

5.1％+0.0ptB to B &Renovation

1.5％+0.2ptChubu&
Tokai

9.5％▲0.3ptOverseas3.5％+0.8pt

Kinki

14.1％

▲0.4ptOthers2.5％+0.7pt■不許複製印刷配布

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Product Development▪Strengthened development of home appliances for a new way of living.
Sales are steadily increasing compared with the plan.
▪We propose a learning space that matches the family structure andchildren's growth with our multifunctional loft beds.

Appliances for New life

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Multifunctional loft beds

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Sales Promotion Measures▪With the desire to "make the time at home more comfortable for as many customers as
possible," we conducted a total of two price reduction campaigns in support of daily life.
▪The first periodic price reductions were implemented in November 2021.
(Permanent price reductions on 1,389 home goods items and 264 furniture items)▪ Second price reduction in January 2022.
(520 home goods items added since the first price reduction)

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17

Number of app members▪With the increase in the number of app members, the number of customers using boththe store and E-commerce increased.
▪Improve convenience for customers shopping through measures that integrate online andoffline shopping by using app.

Number of app members(10 thousand people )

1,600
1,314

▪FY 2021 Results
13.14 million people

908▪First quarter ratio+4.06 million people (144.7%)

522

FY19

Number of app members▪FY2022 plan
16 million people

FY20

FY21

FY22

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E - Commerce▪Domestic online shop sales at the end of FY2021 will be 71.0 billion yen.
(100.8% compared to FY2020, 160.1% compared to FY2019)▪As an expansion of new sales channels, we implemented "Insta-live," sales via livecommerce.

Domestic E-Commerce sales（100 million Yen）

704

386

710

Live on Instagram, “Insta-live”
Held a total of 9 times(as of February 20,2022). The information will be archived on
the NITORI E-commerce site and used ascustomer service content.

443

303

FY17

FY18

FY19

FY20

FY21

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19

DECO HOME
Existing stores generated sales YoY（％）※ Sales = Sales based on orders▪140 stores at the end of the period (+34 stores)▪ Ratio of DECOHOME original products increased.

105

100.2％
98.8％

100

96.4％

95
FY19

FY20

FY21

Number of stores

94

140
106

78
51

FY16

62

FY17

FY18

FY19

FY20

FY21

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N plus2022 SPRING COLLECTION
New spring catalog published
OCCASION COLLECTION
Coordinates for spring dressing,whether for the office or for a day
off.
“Magic Belt Stretch Pant”
N+ basic productStretchable elastic along the waist
Comfortable to wear with stretch
material

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Overseas business (Taiwan, Mainland China, U.S.A.)
TaiwanNew store openings, new format business(N Sleep Shop; specializing in bedding)
No. stores at the end of the period: 44 (+9)
Sales at N Sleep Shops increases steadily

Mainland China

New store openings
No. stores at end of period: 46 (+12)

Strengthen E-Commerce businessOpen stores on "momo" EC site
→ Increase EC conversion rate

Strengthen E-Commerce businessStarted opening stores on "Tmall" EC site
→ Increase in EC conversion rate
Increase in the number of customers due toexpansion of sales channels

Started airing common TV commercials in Japan
Increased sales of seasonal bedding products(N-COOL, N-WARM), etc.

NITORI Brand Enhancement Measures
Common measures with Japan and Taiwan to
improve recognition

U.S.A
Expansion of sales channels
11 pop-up stores
Began opening stores on Amazon and Walmart
Marketplace in addition to the company's own
E-commerce site.
Copyright 2022 Nitori Holdings All Rights Reserved

Strengthening Sales of Custom-made Furniture
A custom-made furniture sales floor and corporate
showroom were opened on the 6th floor of Shanghai
XUJIAHUI Store.
A showroom with different styles of custom-madefurniture is introduced for general customers.

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22

Overseas Business (Malaysia)▪ The first store opened in Malaysia (Kuala Lumpur) on January 20, 2022.

Store NameNITORI LaLaport BUKIT BINTANG CITY CENTRE
Store area: approx. 2,650 sq. meters

Store Format
The "N Sleep Shop" specializing in bedding
Bedding items will be opened alongside the areathat handles furniture and hfa.

Sales Trends
Sales are performing well in comparison with plans.
Kitchenware and bedding products, etc. are
performing particularly well.

Sales Promotion
Open own E-commerce site in April 2021
Create own SNS accountStore Opening Plan
Plan to open 20 stores in 5 years

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Overseas Business (Singapore)▪ The first store opened in Singapore (Orchard Road) on March 31, 2022.

Store NameNITORI Orchard
Store area: approx. 2,510 sq. meters
Store Format
Promote coordination with a focus on the
Hfa sales floor.

Sales Promotion
Open your own e-commerce site
Create own SNS accountHold an event before opening
Store Opening Plan
Plan to open 10 stores in 5 years

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24

Korea E-commerce▪Formed alliance with Coupang, Korean largest e-commerce company, and began sales on
its E-commerce site for the Korean market.
▪Began market entry in South Korea, where there is no physical store, by leveraging
online sales channels.
▪Realize direct container purchasing from Mainland China to improve gross profit margin.

Start of sales
January 12, 2022

Background of Expansion into South Korea
Korea's high e-commerce rate enables market
entry into the country, which has no physicalstores.
Direct container procurement from Mainland
China is possible.
Handling goods
More than 120 products including bedding,cushions, slippers, kitchen mats, etc.
In the summer of 2022, the company plans tolaunch the "N Cool" series, which is tailored to
Korean bed sizes.

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25

Logistics Measures※▪As part of therestructuring of domestic logistics bases, Nagoya DC (Aichi Prefecture)※and Satte DC (Saitama Prefecture) were newly established.
Satte DC

Nagoya DC
The first DC established in this area as a logistics
base covering the Tokai and Hokuriku areas,
located approximately 7 km from the Port ofNagoya.
▪Completion date: early November 2023
▪Address: Tobishima Village, Aichi Prefecture▪Structure: 4 floors above ground▪Extended bed area: approx. 141,450 sq. meters

Located adjacent to the Satte Interchange on the
Ken-O Expressway, it will be the largest area for a
DC in Japan.
▪Completion date: early March 2024
▪Address: Satte City, Saitama Prefecture▪Structure: 4 floors above ground▪ Extended bed area: approx. 210,400 sq. meters

image

image

※DC：Abbreviation for Distribution Center

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26

Shimachu Business Topics

Shimachu Business (1)Development of PB products
Improve gross profit margin by converting HC products
into PB products through the NITORI Group's productdevelopment capabilities.

NITORI PointNITORI points can be used at Shimachu.
*Points will be awarded and used on the Shimachu EC site
as soon as they are ready for use. 。

▪FY2022 PB development plan for HC products
Approx. 16,000 SKUs
(equivalent to approximately 30% of HC product sales)▪Progress of development (as of March 20, 2022)
Developed: approx. 400 SKUs
Under development: approx. 3,100 SKUs
Progress rate: approx. 21.9%

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28

Shimachu Business (2)▪2025 Plan Execute each measure to achieve 12% ordinary income margin.
2025 Plan Ordinary income ratio

12.0%

※

Main measures▪Establish a differentiated Shimachu brand▪Establish the ideal product mix andappropriate sales floor space for eachstore and department.
▪Renewal of existing stores

5.0%▪New store openings in areas outside the
Kanto and Kansai regions

FY2022

FY2025*Amortization of goodwill, etc. associated with the business combination is not included.

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29

FY2022 Main Measures

FY2022 Main Measures▪ Pursue lower prices and increase the number of customers
Gain further customer support as a destination store▪ Building a foundation and accelerating growth to realize
the 2032 Vision
Establish global supply chain and IT systems, accelerate store
openings in countries and regions where we have not yet opened
stores▪ To realize a wider product lineup than existing businesses(HC business) and maximize synergies▪ Building a foundation to enable expansion in countries, regions
and business areas▪ Solving the world's problems and aiming for a better future alongwith the progress toward the realization of Romanticism

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31

FY2022 Main Measures
NITORI Business (Domestic)▪Pursue lower prices and increase the number of customers
Gain further customer support as a destination store
NITORI、NITORI EXPRESS
・Increase by 27 stores in the current fiscal year
→ Increase by 36 stores in the next fiscal year
・Expansion and contraction of product variety and efficient
store remodeling・Strengthen product development capabilities from thecustomer's perspective
・Improve the number of customers and sales volume
by pursuing lower prices
・Improvement in operating income per tsubo throughcost reductions, etc.

DECOHOME
・Increase by 34 stores in the current fiscal year
→ Increase by 44 stores in the next fiscal year
・Expanding the opening of small stores with floor
space of 330.6 sq. meters
・Expansion of DECOHOME's original products

B to B & Remodeling Business
Improve operating margin and strengthen productdevelopment

E-Commerce
Expansion of EC-only products and addition of new features

N plusIncrease by 1 store in the current fiscal year
→ Increase by 22 stores in the next fiscal year

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32

FY2022 Main Measures
NITORI Business (Overseas)▪Building a foundation and accelerating growth to realize the 2032 Vision
Establish global supply chain and IT systems, accelerate store openings in countries
and regions where we have not yet opened stores

Number of overseas stores

280

Improve profitability of China business
China operations to return to profitability in a single
fiscal year
Increase EC conversion rate, expand EC sales

Acceleration of overseas store openings
Taiwan +10 stores, China +26 stores
U.S.A. +1 store planned

Expansion into Southeast Asia

134

Malaysia +2 stores, Singapore +2 stores planned
Accelerate store openings through standardization

93

Expansion of overseas E-Commerce area
Exhibited in Korea EC (Coupang)
Expanding overseas EC to countries and regions
where we have not yet opened stores
Sell products to countries and regions with highE-commerce rates
FY2021

FY2022

FY2025

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33

FY2022 Main Measures
Shimachu Business▪To realize a wider product lineup than existing businesses (HC business)and maximize synergies

Main Measures

Realization of Synergies▪Reform of Shimachu Management Methodology
Conduct numerical analysis based on reports, etc.
Sales floor sales efficiency, etc.
▪Organizational Integration
Consolidation of purchasing functions for
consumable supplies, etc. to reduce costs
and improve productivity
Human resource exchange▪Transformation of stores and productassortment
Conversion of home center products
to PB
Mutual introduction of products
between NITORI and Shimachu
Expand customer base by introducing
high-priced furniture▪Human Resource Development
Chain Store Theory Training
2,000 people attended

management

Organization& System

Operations& Infrastructure

Corporate Culture

Copyright 2022 Nitori Holdings All Rights Reserved■不許複製印刷配布▪Restructuring of HC product assortment
supported by local customers▪Optimize product composition▪Improvement of gross profit margin
through development of PB products▪Organizational reform, reform ofeducation system
Reform of evaluation and compensation
systems
Promotion of human resource exchange▪Standardization and efficiency
Store zoning optimization
Horizontal development of model stores▪Further efforts tomaximize synergies

34

FY2022 Main Measures
Business Infrastructure Development▪Establish a foundation to enable expansion in countries/regions and business areas.
Coordination of supply chain, IT, and organization, and a backward-looking structureand system are necessary to realize the vision.
supply chain

IT▪Establish systems and▪In response to rising costs (rawmaterial price hikes, yen depreciation, mechanisms to open new stores inrising marine transportation costs, etc.), countries and regions where wehave not yet opened stores and to
consolidate suppliers, shift production
expand our business domain insites, purchase raw materials, etc., tocooperation with our supply chain.
promote cost reductions.
▪Accelerate further IT and DX▪Restructuring of logistics network
promotion to improve operational
efficiency

Copyright 2022 Nitori Holdings All Rights Reserved■不許複製印刷配布

organization▪Design systems to promote employee
success. (e.g., building a personnel
system that does not cause delays incareer advancement due to taking
leave for life events such as childbirthor childcare)▪Selection and training of candidates
for directors and executive officers

35

FY2022 Main Measures
SDGs (1)▪Solving the world's problems and aiming for a better future along with the progress
toward the realization of our mission

Main Measures▪Sustainable raw material procurement
and a supply chain free of human rights
violations▪Reduce waste and expand resource recycling▪Addressing Climate Change Issues▪Promoting Diversity▪Penetration of sustainability activities
internally and externally

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36

FY2022 Main Measures
SDGs (2)▪We expressed support for the recommendations of the TCFD
(Task Force on Climate-related Financial Disclosures).
▪Participate in the TCFD Consortium, a forum for discussion among supporting companies
and financial institutions.
▪We will increase the ratio of female managers in our domestic group to around 40%
in the 2030s.
▪Expand the number of positions available for shorter working hours.
Conduct questionnaires for all employees and periodic discussions with directors
regarding the realization of more accessible support systems, etc.
Expresses support for
TCFD's recommendations

Ratio of female managers from 15% to 40▪Creating a system that allows people to choose
how they work
▪Fostering a corporate culture that maximizes
diverse work styles▪To an environment that allows each individual tomaximize his or her abilities

Participated in TCFD Consortium

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37

Store roll-out plan in FY2022
Area

J
A
P
A
N

O
V
E
R
S
E
A
S

Type

Feb. 21,2022
No. stores

Net increase
Planned No.

Mar. 31,2023
No. stores

NITORINITORI EX

494

36

530

DECO HOME

140

44

184

N plus18

22

40

Shimachu

56

▲2

54

Subtotal

708

100

808

Taiwan44

1054

Mainland China

46

26

72

U.S.A.

2

1

3

Malaysia

1

2

3Singapore022

Subtotal

93

41

134

801

141

942

Total

Copyright 2022 Nitori Holdings All Rights Reserved

Total 942 stores
Previous period-end ratio(+141 stores)

Mainland China+26 storesJapan+100 stores

Taiwan+10 storesSingapore+2 store

U.S.A.
+１ store

Malaysia+2 stores■不許複製印刷配布

38

Consolidated Financial Plan for FY2022▪For FY2022, 13 months and 11 days from February 21, 2022 to March 31, 2023
Increase/decrease amounts and percentage increase/decrease are provided
for reference.
▪Existing store sales YoY (NITORI + DECOHOME + E-commerce): 102.6% for the full year
▪Exchange rate: 115 yen to the dollar, estimated capital investment: 89 billion yen（100 million Yen）

FY2022

FY2021(Feb.21, 2022 ～ Mar.31 2023）(Feb.21 2021 ～ Feb.20 2022）

plan

to salesActualto salesNet sales

9,636

－

8,115

－

Gross profit

5,068

52.6%

4,258

SG&A
expenses

3,562

37.0%

Operatingincome1,506

Ordinary
incomeProfit attributable toowners of parent

Prior Period ComparisonchangeYOY

1,520

118.7%

52.5％

809

119.0%

2,876

35.4％

685

123.8%

15.6%

1,382

17.0％

123

108.9%

1,530

15.9%

1,418

17.5％

111

107.9%

1,040

10.8%

967

11.9％

72

107.5%

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Distribution of Profits to Shareholders▪FY2021 18th consecutive fiscal year of dividend increases
Annual dividend: 140 yen per share (+17 yen from the previous year)

Annual Dividends
Half-year dividends (yen)Fiscal year-end dividend (yen)

147

140
123
108
92

70

97

82

74

66
54

65
50

55

47

50

47

35
27.5

22.5

29

26

30

35

45

47

54

57

70 73

'05.2 '06.2 '07.2 '08.2 '09.2 '10.2 '11.2 '12.2 '13.2 '14.2 '15.2 '16.2 '17.2 '18.2 '19.2 '20.2 '21.2 '22.2 '23.3（plan）

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NITORI Group Labor Productivity▪NITORI's performance was significantly higher than the average amount of laborproductivity in Japan, approximately 2.7 times.
▪Growth in human resources enables high labor productivity and further future
investment.
(10 thousand yen)

3,000

Labor Productivity
NITORIJapan

NITORI
2,271

U.S.A

2,500

2,000

Domestic averagein Japan: approx.
U.S.A.
1,399

1,500

2.7 times

1,000

500

Japan
842

0
1972

1982

1992

2002

2015

2020
(Year)*From "Productivity Statistics" by Japan Productivity Center and "Furniture and Interior Sales
Business" by Nitori HD: Pegasus Management Index

Copyright 2022 Nitori Holdings All Rights Reserved■不許複製印刷配布*Labor productivity = Gross profit / Average number of
employees per year

41

Improvement of working conditions▪Average personnel expense of NITORI career-track employees increased by +30.7%
compared to 1996.
personnel
expensePersonnel Expense
NITORI ※1※2
Major Companies（343 Company Average）(10 thousand yen)

NITORI

37

※1

2021

1996

1996
Comparison

345,786yen

264,578yen+81,208yen+30.7%

314,357yen

305,066yen+9,291yen+3.0%

332,826yen

307,046yen＋25,780yen+8.4%

290,680yen

290,707yen▲27yen▲0.1%

34.5
Major ※2
Companies

35(343 Company
Average)30.5

33Keidanren※3
Major
Companies(251 Company
Average)

31

Japan Federationof Labour Unions(4,772 union
average) ※4

31.4

29

※1 Union members' standard personnel expense (excluding overtime
pay, transportation, etc.)

27

26.4

※2 Major companies: Capital of 1 billion yen or more and 1,000 or more
employees※3 Major Keidanren companies: In principle, listed on the Tokyo Stock
Exchange or the First Section with at least 500 employees

25
1996

2001

2006

2011

2016

※4 Japan Federation of Trade Unions: includes 3,553 unions with less2021 than 300 members(Year)

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Results of Labor-Management Negotiationsfor Spring 2022
▪NITORI base salary increases for 19 consecutive years as wage revision for career-track
employees (from FY02/04)
NITORI ・Major companies Salary increase rate※2022 Spring Labor-Management
Negotiation Results

Nitori Base increase (other than regular salary increase)
NITORI Total Salary Increase
Major Companies Total Salary Increases(NITORI, Shimachu career-track employees, average per person)

4.5%

2.37%

4.0%

Year 2022
NTR

3.5%
3.0%
2.5%
2.0%
1.5%

1.86%
Year 2021

1.0%

Change,Amount,Percentage

AmountRate ofincrease

Regularsalaryraise

5,340yen

1.54%

▲6yen
▲0.2%

salaryincrease

2,895yen

0.83%+1,264yen+77.5%

Total

8,235yen

2.37%+1,258yen+18.0%

Regularsalaryraise

3,487yen

1.22%+53yen+1.5%

salaryincrease

1,474yen

0.52%+860yen+139.8%Others2,094yen

0.66%+2,094yen-

Total

7,055yen

2.40%+3,006yen+74.2%

SMC

0.5%
0.0%
’96

’98

’00

’02

’04

’06

’08

’10

’12

’14

’16

’18

’20

’22

*Major companies: Aggregate of 343 major private-sector companies with labor unions (capital of at least 1 billion yen and at least 1,000 employees), as indexed by the Ministry of Health, Labor and Welfare.

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43

Established a new IT company,
NITORI DIGITAL BASE, Inc.
▪Accelerate the NITORI Group's digital transformation by providing an attractive
environment for IT and digital personnel to grow.
Newly established the officewhere Engineers can perform at their best
(Meguro office, from June)

Attractive projects and environment▪Participation in global, large-scale projects→Realization of new purchasing experience→Global supply chain reform, etc.

▪Use of innovative technology without being boundby precedent▪Pay a high level of compensation based on results.

Image▪A way of working that allows you to focus on
creative activities→Flexible work hours and remote work
Applications will be accepted from April 1.
Recruit "IT and digital human resources" and "datascientists" from around the world, transcending
industry boundaries.

Click here to access the site

https://www.nitorihd.co.jp/digital/
Image

Copyright 2022 Nitori Holdings All Rights Reserved■不許複製印刷配布44

【Note on the outlook】
This material contains projections and forward-looking statements regarding the future plans,
strategies and performance of the Company and its affiliates. These statements are not historicalfacts, but rather assumptions and beliefs based on information currently available to the Company. It
also involves risks and uncertainties related to economic trends, consumer spending, market
demand, and taxation and other systems. Therefore, please be aware that actual results may differ
from our projections.
This material contains unaudited reference figures, and amounts are rounded down to the nearest
100 million yen and rounded up to the nearest million yen for all other amounts.

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45