The 61st Business Year Business
Performance Data Analysis
FYE December 31, 2023

Published by:(Securities code: 9830)

Business Administration Headquarters, Corporate Planning Division, Public Relations & IR Section
Trusco Fiorito Bldg. 10th floor, 4-28-1, Shinbashi, Minato-ku, Tokyo 105-0004, Japan
TEL：03-3433-9840 FAX：03-3433-9881
E-mail: info@Trusco.co.jp

1
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Table of Contents
01. Company Profile

04. Financial and Other Performances……………………… P.3

Company overview
Business flow

02. Company-wide Business
Performance…………… P.6

Accounting highlights[Consolidated] Business performance[Consolidated] Monthly sales[Consolidated] Monthly sales by sales route

03. Sales Performance………………… P. 11[Consolidated] Business performance by sales route[Non-consolidated] Sales by category of goods[Non-consolidated] Changes in sales by category of goods (small category)[Non-consolidated] Sales of private brand (PB) goods

This document contains statements regarding future forecasts of business performance and business plans.
Such statements are not guarantees of future performance and involve risks and uncertainties.
Please note that future performance may differ from the planned figures due to changes in the management
environment and other factors. This document is for informational purposes only and the Company is under noobligation to update it with the latest information available at this time.

…… P. 20

[Consolidated] Selling, general and administrative expenses (SGA)[Consolidated] Details of selling, general and administrative expenses (SGA)[Consolidated] Financial statements and financial indicators[Consolidated] Capital expenditures[Consolidated] Quarterly business performance and budget (quarterly)(cumulative)

05. Various key indicators…………………… P. 27

Merchandise / Logistics / Sales / Digital / Human Resources

06. Management Plan………………………… P. 34[Consolidated] Full-year Management plan for the 62nd business year
[Consolidated] 62nd Business Year Management plan by sales route[Consolidated] Selling, general and administrative expenses (SGA) for the
62nd business year
[Consolidated] List of 62nd Business Year capital expenditure plans[Consolidated] 62nd business year quarterly budget (quarterly) (cumulative)
Vision - Medium-term management ability targets -07. ESG Information………………………… P. 43

Trusco's "Gentleness for the Future" Project
Sustainability indicators
Relationship with society & corporate governance

08. Reference Information…………………… P. 48

Stock information
Index comparison in the industry
The Company's sales index and industrial production index
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

2

01

Company overview
Business flow

Company Profile

3
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Company overview

Corporate message

Company name

Trusco Nakayama Corporation

Founding

May 15, 1959

“GAMBARE!!
JAPANESE MONODZUKURI”.

Tetsuya Nakayama, President
Representative

Head offices

Number of offices

Chairman, Nakayama Visually Impaired Welfare Foundation
Vice president, Japan Federation of Machine Tool Distributors Associations
President, Osaka Machine Appliance Wholesaler Cooperative

Tokyo Head Office (Minato-ku, Tokyo, registered as official headquarters)
Osaka Head Office (Nishi-ku, Osaka City)

94 in total:
89 domestic bases: (2 head offices, 59 domestic sales branches, 28 domestic distribution centers)
5 overseas bases: (Local subsidiaries: Trusco NAKAYAMA CORPORATION (THAILAND)
LIMITED, Trusco NAKAYAMA CORPORATION (INDONESIA) LIMITED,
Supplier development office: Germany, Taiwan, Thailand)

Capital stock

5,022,370,000 yen

Listed stock exchange

Prime Market of the Tokyo Stock Exchange (Code number: 9830)

Number of employees

3,043 (consolidated)

Credit rating

Single A (Rating and Investment Information, Inc.)

Line of business

Wholesale of all kinds of factory auxiliary materials (pro-tools), including working tools,
measuring tools, and cutting tools needed in production. The company's mission is to improvethe convenience of materials procurement at manufacturing sites through the general catalog"Trusco Orange Book" and the search site "Trusco Orange Book.Com."Tokyo Head Office: Trusco Fiorito Bldg.
(Minato-ku, Tokyo)

As of end of December 2023
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

4

Business flow
Manufacturers
Wholesale3,509 companies

Connecting an outlet toDomestic suppliers

Trusco is an easy way toApprox. 3,172
companies
3,046

take advantage of ourresources.

Merchandise

Retail 5,632 companies∞ (infinite)

Factory route
We deliver our products to factories,
construction sites, and othermanufacturing sites through machine tool
dealers, etc.

e-business route

Home center route
We deliver our products to consumers
through home centers and pro-tool shops.

Sales

Manufacturers,
construction
companies, etc.

Manufacturers,
general consumers,
etc.

Logistics

companies
Ireland, United States, United
Kingdom, Italy, Israel, India, Estonia,
Austria, Netherlands, Canada,
Greece, Singapore, Switzerland,
Sweden, Spain, Sri Lanka, Slovakia,
Thailand, Czech Republic, Denmark,Germany, New Zealand, France,
Vietnam, Belgium, Poland, Portugal,
Malaysia, Norway, South Korea,
Taiwan, China

Users

The products are delivered to factories
and consumers through Internet ordercompanies.

Overseas3232 countries,330
337

Distributors

DigitalOverseas route
We deliver our products to manufacturing
sites around the world.

Businesses
conducting outdoor
work, general
consumers, etc.

Overseas
manufacturers, etc.

As of end of December 2023
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

5

02

Company-wide
Business
Performance

Accounting highlights[Consolidated] Business performance[Consolidated] Monthly sales[Consolidated] Monthly sales by sales route

6
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Accounting highlights▮ Full-year Performance in the 61st business year
Net sales

268,154 million yen(YoY change +8.8%)• Strengthening of measures that contribute to improved customer convenience and reduced environmental
impact, including “Niawase + Yuchoku” (assortment & direct delivery to users), which holds an abundantinventory of approximately 590,000 items and utilizes state-of-the-art distribution equipment

Gross profit

57,522 million yen(YoY change +10.3%)• The impact of increased profit margins on sales of inventory purchased at the old prices, before the priceincreases, after the price revisions (approx. 2,300 million yen)
• The impact from progress in purchase price pass-through to selling prices

Selling, general andadministrative
expenses (SGA)

39,003 million yen(YoY change +4.0%)

Extraordinary loss

913 million yen

Profit attributable toowners of parent

12,268 million yen(YoY change +15.4%)• Labor costs (+ approx. 1 billion yen, impact from achievement incentive payments and temporary bonus
payments)• Freight and packaging expenses (+631 million yen, impact from increased sales and increased transportation
costs)• Depreciation (-461 million yen)
Recorded loss due to stock valuation review
GROUND Inc. (-500 million yen), Cinnamon Inc. (-316 million yen)• 15.4% year-on-year, due to gross profit margin increasing due to an increase in the selling price of inventory
purchased before the price revisions, and keeping selling, general and administrative expenses down relative
to the increase in sales.

▮ Full-year Outlook for the 62nd business year
Plan

Year-on-yearchangeYoY Change

Net sales

284,710 million yen+6.2%+16,555 million yen

Gross profit

59,760 million yen+3.9%+2,237 million yen

Selling, general and administrative
expenses (SGA)

41,150 million yen+5.5%+2,146 million yen

Ordinary income

18,850 million yen+1.0%+180 million yen

Profit attributable to owners of parent

14,740 million yen+20.1%+2,472 million yen

Gross profit takes into account approximately
500 million yen in inventory valuation gains due
to merchandise price increases.
Regarding selling, general and administrative
expenses, we expect an increase in salaries andbonuses due to achievement incentives, etc., andan increase in freight and packaging expenses
due to an increase in direct shipments to users.
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

7

[Consolidated] Business performance
Actual results for FYE December 31, 2022
(60th business year)

Actual results

Actual results for FYE December 31, 2023
(61st business year)

Year-on-yearchangeShare

Actual results

Year-onyearchangeShare

Changefrombudget (%)

Net sales

246,453 million yen

-

+8.6%

268,154 million yen

-

+8.8%

+0.8%

Gross profit

52,160 million yen

21.2%

+9.4%

57,522 million yen

21.5%+10.3%+1.0%

Selling, general andadministrative expenses(SGA)

37,493 million yen

15.2%

+8.1%

39,003 million yen

14.5%

+4.0%

-0.1%

(depreciation included in
SGA)

6,667 million yen

2.7%

-3.8%

6,206 million yen

2.3%

-6.9%

-3.1%

Operating income

14,667 million yen

6.0%+12.8%

18,519 million yen

6.9%+26.3%+3.3%

Ordinary income

15,065 million yen

6.1%+11.1%

18,669 million yen

7.0%+23.9%+2.5%

Profit attributable toowners of parent

10,626 million yen

4.3%

-8.4%

12,268 million yen

4.6%+15.4%+0.6%

Net income per share161.15 yen--14.71 yen

186.05 yen-+24.9 yen

+1.19 yen

Dividend per share

40.00 yen-

+4.50 yen

46.50 yen-

+6.50 yen

±0 yenPrivate brand sales

45,876 million yen

18.6%

+5.6%

48,313 million yen

18.0%

+5.3%

-3.4%

Capital expenditures

4,799 million yen--

13,469 million yen

-

-

-

Points• Net sales
YoY change +8.8%, Change from budget+0.8%
Increase in sales due to inventory,
logistics, digital structure and various
efforts• Gross profit margin
Change from the end of previous fiscal
year +0.3 pt
The impact of increased profit on sales ofinventory purchased at the old prices
after the price revisions (approx. 2,300
million yen)
• Selling, general and administrative
expenses (SGA)YoY change +4.0%, Change from budget-0.1%(Increase) Labor cost, freight and packing
expenses, etc.
(Decrease) Depreciation, etc.
• Profit attributable to owners of parent
YoY change +15.4%, Change frombudget +0.6%
Sales expansion, gross profit marginincrease, etc.

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

8

[Consolidated] Monthly sales

25,48526,00023,892

23,97922,18322,161

21,566

21,59722,00020,00023,69923,09924,00020,84820,741

18,89918,000+11.5
14,000

+11.4

+7.7

16,000

+12.2

+10.1

+6.6

+11.8

+6.4

+8.2

+7.5

+8.5

+4.3

12,00010,000

8,000
6,000

Net sales (million yen)

4,000

Year-on-year change (%)

2,000

0
January

February

January

March

February

April

June

July

August

May

June

July

1,158

1,078

1,037

1,050

1,108

948

1,109

+5.6

+7.7

+11.4

+12.2

+6.6

+10.1

+8.2

19

19

22

20

20

22

20

+1

+1

±0

±0

+1

±0

±0

995

1,137

Year-on-yearchange (%)-1.2

Number ofbusiness days
(days)
Year-on-yearchange (days)

AugustSeptember

April

Sales per day(million yen)

March

May

September

October

OctoberNovember December

November

December

Total

1,129

1,195

1,142

-

+6.4

+6.5

+ 7.5

+ 13.6

-

22

20

21

20

21

246

±0

±0

+1

±0

-1

+3

• Orders are constantly placed for
consumables used in factories. As such, weplace focus on the sales per day.
Our sales increase during the peak periodsof March when many companies close theiraccounts.

9
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Monthly sales by sales routee-business route
5,462
4,814

4,789

4,241
January

February

March

April

May

June

July

AugustSeptember OctoberNovember December

Number ofbusiness days

19

19

22

20

20

22

20

22

20

21

20

21

246

YoY change

+1

+1

±0

±0

+1

±0

±0

±0

±0

+1

±0

-1

+3

5,050

5,325

4,553

5,310

5,281

4,895

4,876
4,520

Total

+21.6
+19.2

+17.5
+17.4
+14.5
+12.5

+13.1
+10.9

+14.7

+12.3

+12.9

+9.7
Net sales (million yen)

Factory route

Year-on-year change (%)

17,688January

15,922

14,784

15,141

14,575

16,114

15,817

February

March

April

June

July

August September October November December

Home center route

15,032
14,103

13,825May

16,385

2,112

12,795

2,310

2,254

2,146
2,031

1,995
1,882

1,829

2,069

2,036

1,889

1,701

+ 18.1
+ 9.5

+ 8.9

+ 5.5

+ 8.5

+ 7.7

+ 17.5

+ 9.2
+ 4.6

+ 5.8

+ 13.5+ 16.7+ 17.0+ 13.0

+ 7.4

+ 8.3

+ 8.5

+ 6.3

+ 2.6

+ 5.4

+ 2.1

+ 3.7

+ 1.6

+ 0.7

January

February

March

April

May

June

July

AugustSeptember October

Net sales (million yen)

Net sales (million yen)

Year-on-year change (%)

Year-on-year change (%)

November December

January

February

March

April

May

June

July

August September October November December

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10

03
Sales
Performance[Consolidated] Business performance by sales route・ Factory route・ e-business route・ Home center route・ Business performance of subsidiaries[Non-consolidated] Sales by category of goods[Non-consolidated] Changes in sales by category of goods(small category)[Non-consolidated] Sales of private brand (PB) goods

11
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Business performance by sales route
Factory route: Share 67.9% (YoY change +6.8%) e-business route: Share 22.1% (YoY change +14.6%)
Home center route: Share 9.0% (YoY change +9.5%) Overseas route: Share 1.0% (YoY change +22.5%)
Actual results for FYE December 31, 2022
(60th business year)

Actual results for FYE December 31, 2023
(61st business year)

Gross profit
marginNet sales

Actualresults

Actual results

Share

Gross profit margin

Year-on-yearchangeChange frombudget (%)

Actualresults

Change fromthe end of
previous
fiscal year

Sales route

Actual results

Factory route170,606 million yen

69.2%

+5.1%

21.2%

182,188 million yen

67.9%

+6.8%

+0.1%

21.5%

+0.3pte-business route51,576 million yen

20.9%+16.2%

22.1%

59,121 million yen

22.1%+14.6%

+2.1%

22.3%

+0.2ptHome center route22,162 million yen

9.0%+20.7%

17.4%

24,260 million yen

9.0%

+9.5%

+3.0%

17.4%

±0pt

Overseas route2,108 million yen

0.9%+24.4%

35.8%

2,583 million yen

1.0%+22.5%

-1.8%

34.4%

-1.4pt246,453 million yen

100.0%

+8.6%

21.2%

268,154 million yen

100%

+8.8%

+0.8%

21.5%

+0.3pt

Total

Share

Year-onyear change

Net sales

12
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Business performance by sales route: (Factory route)
This route delivers our products to factories, construction sites, and other manufacturing sites through machine tool dealers, etc. While businessconditions in the manufacturing sector are returning to their pre-pandemic levels, the holding of abundant inventories and the implementation ofvarious initiatives resulted in a YoY change in net sales of +6.8%.
Actual results for FYE December 31, 2022
(60th business year)

Actual results for FYE December 31, 2023
(61st business year)

Gross profit
marginNet sales

Share

Net sales

Actualresults

Actual results

PointsGross profit margin

Year-onyear change

Share

Change fromthe end of
previous
fiscal year

Actualresults

Sales route

Actual results

Machine tool dealers

86,908 million yen

50.9%

21.5%

90,502 million yen

49.7%

+4.1%

22.2%

+0.7ptDealers in welding materials

24,206 million yen

14.2%

20.7%

26,180 million yen

14.4%

+8.2%

20.8%

+0.1ptOther manufacturing related(Physical chemical, conductor,
packaging material dealers, etc.)

27,942 million yen

16.4%

20.3%

30,598 million yen

16.8%

+9.5%

20.1%

-0.2ptConstruction related

31,548 million yen

18.5%

21.5%

34,906 million yen

19.1%+10.6%

21.6%+0.1pt• By maintaining an abundant inventory, we
are able to provide our customers withimmediate delivery and one-stop purchasing,and at the same time, we are able to achieve"assortment" of multiple orders into a single
box for shipment and direct delivery to users.
• We carried out business activities that also
help to reduce our environmental impact,
such as strengthening efforts in "MRO
Stocker," which enables product procurement
at the factory at any time, and strengthening
efforts in our "Naojiro" repair workshop.
Customers

Factory route total* The gross profit margin has beenadjusted in this document byreclassifying gross profit among
sales channels for FYE December
31, 2022.

170,606 million yen

100.0%

182,188 million yen

21.2%

2022 Full year F route net sales (million yen)

42,2302023 Full year F route net sales (million yen)(+7.0%)

100.0%

+6.8%

21.5%

+0.3ptInternet order companies
Home centers
Tools and hardware
retailers

Users
Production
factories
Construction sites
General consumers( ) YoY change

32,925(+5.9%)

39,48325,56019,18019,83824,156

17,604(+6.6%)

17,98831,079(+5.8%)(+7.7%)(+7.5%)

18,42816,376

17,709(+8.8%)

16,27413

7,138(+4.7%)

6,817
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.
Hokkaido and Tohoku Kita-Kanto and Shinshu

Tokyo Metropolitan

Hokuriku

Tokai

Kinki

Chugoku and Shikoku

Kyushu[Consolidated] Business performance by sales route: (e-business route)
This route delivers our products to manufacturing sites, such as factories and construction sites, and consumers through Internet order companies.
Product data and system linkage, as well as logistics processing tailored to customer needs, have improved convenience, resulting in a YoYchange in net sales of 14.6%.
Actual results for FYE December 31, 2022
(60th business year)
Gross profit
marginNet sales
Sales route
Actual results

Actual results for FYE December 31, 2023
(61st business year)

Share

Actualresults

Net sales

Actual results

Share

PointsGross profit margin
Year-on-yearchangeActualresults

Change fromthe end of
previous
fiscal year

Mail order companies

40,148 million yen

77.8%

20.9%

45,054 million yen

76.2%+12.2%

21.1%+0.2ptCompanies participating in Orange
Commerce (Trusco’s electronic
central purchasing system), MRO
Stocker

11,428 million yen

22.2%

26.3%

14,066 million yen

23.8%+23.1%

26.1%-0.2pte-business route total

51,576 million yen

100.0%

22.1%

59,121 million yen

100.0%+14.6%

22.3%+0.2ptSales to mail order companies: Sales ratio by industry

MRO mail ordercompanies
39.6%
MonotaRO, Misumi, etc.

Comprehensive
mail ordercompanies
21.3%
Amazon, etc.

Dealers of physical chemical
and medical devices
Tubing dealers 1.0%
2.5%
Machine tool dealers4.8%

Mail order
Stationery mail companies of
order
home
companies
electrical
12.1%
appliances
9.5%• Strengthening unique logistics services such as
logistics processing and "assortment + direct
delivery to users" tailored to customer needs• By developing a product database withapproximately 4.1 million items, strengthening
system integration, and offering logistics services
that fulfill the demands of internet order companies
and companies participating in Orange Commerce,
we have improved convenience and significantly
increased the number of orders made to ourcompany.

Data usage
Product adoption andperformance information

Data
Other
2.3%

Data expansion

Data linking

e-commerce

Data linkage with
suppliers and customers

14

Askul, etc.
Other mail order companies4.4%

Hardware retailers
2.4%

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Business performance by sales route: (Home center route)
This route delivers our products to consumers through home centers and pro-tool shops. As companies are strengthening their e-commercebusinesses, we aggressively proposed services utilizing our inventory of approximately 590,000 items and logistics capabilities, resulting in a YoYchange in net sales of +9.5%.
Actual results for FYE December 31, 2022
(60th business year)

Home center route

Net sales

Gross profit
marginActual results

Actual results

22,162 million yen

17.4%

Actual results for FYE December 31, 2023
(61st business year)
Net sales

Actual results

Gross profit margin
Year-onyear change

24,260 million yen+9.5%

Change in sales earned via home center route (Unit: million yen)
25,00022,16220,00015,00016,992

24,260

Actualresults

17.4%

Change fromthe end of
previous
fiscal year

±0pt

Points• We consolidated commercial distribution channels
and acquired a new right to supply products throughcollaborative efforts between our stores and EC site.
In addition, we also saw an increase in sales at protool shops, which are dealers that target professional
craftspeople and factory workers who have a highaffinity with our company.
• Utilizing the approximately 4.1 million items we havefor sale and approximately 590,000 items we have instock for instant delivery, we worked on measures tocontinue expanding sales by enhancing the productlineup in our stores and EC site.

18,366

14,702

10,000
5,000
0
2019

2020

2021

2022

2023

15
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Business performance by sales route:(Business performance of subsidiaries)
We strengthened our sales activities by reviewing inventory items and developing local customers and suppliers.
Trusco NAKAYAMA CORPORATION (non-consolidated)
Actual results for FYE December 31, 2023
(61st business year)
AmountShare

Trusco NAKAYAMA CORPORATION (THAILAND) LIMITED

Full year
budgetYear-onyearchangeYear-onyearchangeActual results for FYE December 31, 2023
(61st business year)
AmountShare

Full year
budgetTrusco NAKAYAMA CORPORATION (INDONESIA) LIMITED
Actual results for FYE December 31, 2023
(61st business year)

Year-on-yearchangeYear-onyearchangeAmountShare

Full year
budgetYear-on-yearchangeYear-onyearchangeNet sales

267,476 million yen

100.0%

+8.8%

+7.8%

971 million yen

100.0%+14.6%+13.3%

569 million yen

100.0%+28.0%+33.9%

Gross profit

57,074 million yen

21.3%+10.2%+9.2%

245 million yen

25.3%+25.3%+19.9%

183 million yen

32.3%+40.0%+31.6%

Selling, generaland administrative
expenses (SGA)

38,677 million yen

14.5%

+4.0%

+4.0%

169 million yen

17.5%

+6.2%

+6.3%

157 million yen

27.7%+13.0%+20.1%

Depreciation
included in SGA

6,132 million yen

2.3%

-6.9%

-4.1%

21 million yen

2.2%-10.1%+1.5%

51 million yen

9.1%

+3.4%

+18.1%

Operating income

18,397 million yen

6.9%+26.1%+22.5%

76 million yen

7.8%+108.9%+79.7%

26 million yen

4.6%

ｰ

ｰ

Ordinary income

18,573 million yen

6.9%+23.6%+20.8%

81 million yen

8.4%+113.3%+70.9%

32 million yen

5.7%

893.6%+60.2%Net income

12,184 million yen

4.6%+15.0%+14.6%

81 million yen

8.4%+113.3%+70.9%

32 million yen

5.7%

893.6%+60.2%Net sales

Actual results
Business performance in otheroverseas regions (Philippines,
China, South Korea, etc.)

Rate
Year-on-yearchangeGross profit

1,039 million yen

252 million yen

ｰ

24.2%

+26.4%

12.1%

Points• By enhancing the development of personal suppliers for local top brands inThailand, and by reviewing inventory items in Indonesia, we have shortened
the delivery lead time and expanded the sales area through transactions withnew customers of local companies.
• With regards to sales to other overseas regions, we worked to expand
transactions by opening new accounts with EC companies mainly in the AsiaPacific region.
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

16

[Non-consolidated] Sales by category of goods(Unit: million yen, %)Category of goods(large category)
1. Cutting tools

2. Production
processing goods

3. Construction goods

Medium category

5. Hand toolYear-onyear change

Share

Gross
profitmarginCategory of goods(large category)Medium category

Trusco's sales

Share

Year-onyear change

GrossprofitmarginCutting tools total

8,324

3.1

48,085

18.0

4,308

1.6

-

16.6 6. Environmental
safety equipment
12.0

Environmental safety equipment total① Cutting tools㉕ Protective equipment

25,166

9.4

-

23.4

② Drilling and thread cutting tools

4,015

1.5

-

21.6

㉖ Safety goods

10,885

4.1

-

25.9

Production processing goods total

19,731

7.4

15.7㉗ Environment improvement goods

2,308

0.9

-

18.8

③ Measurement equipment

10,4083.9

15.2㉘ Air conditioning goods

5,229

2.0

-

16.9

Disaster and crime prevention
㉙
goods

2,333

0.9

-

19.8

-

+8.0

+10.1
-

④ Mechatronics

4,114

1.5

-

15.6

⑤ Tools for machine tools

2,411

0.9

-

24.0

⑥ Electronic machinery

2,797

1.0

-

11.0

Construction goods total

31,084

11.6⑦ Hydraulic tools

2,067

0.8

-

⑧ Pumps

3,810

1.4

⑨ Welding equipment

2,601

1.0

⑩ Painting and interior goods

2,677

+8.2

2,161

0.8

Distribution and storage equipment
total

27,823

10.4

21.7㉛ Loading goods

7,862

2.9

-

18.2

12.1

㉜ Conveyors

1,109

0.4

-

15.7

-

16.9

㉝ Transportation goods

10,282

3.8

-

22.5

-

17.6

㉞ Containers and vessels

4,168

1.6

-

29.5

1.0

-

26.5

㉟ Steel shelves

4,400

1.6

-

25.6

2,359

0.9

-

14.6

Research management equipment
total

10,682

4.0⑫ Ladders and stepladders

3,887

1.5

-

22.1

935

0.3

-

29.2

⑬

Piping and materials ofelectronic equipment

5,048

1.9

-

23.0

㊲ Storage and management goods

1,305

0.5

-

30.4

⑭

Component, hardware, andbuilding materials

8,631

3.2

-

27.0

㊳ Work benches

1,616

0.6

-

32.4

Work supply total

51,38519.2

22.1㊴ Stainless goods⑮ Cutting goods

1,621

0.6

-

22.1

㊵

⑯ Grinding and polishing goods

7,926

3.0

-

24.2

⑰ Chemical products

27,295

10.2-⑱ Factory miscellaneous goods

4,757

1.8

⑲ Packing and binding goods

6,502⑳ Casters

3,282

Hand tool total

45,067

16.9

Electric power tools and㉑
accessories

13,337

5.1

Pneumatic tools and㉒
accessories

7,235㉓ Tools for manual work
㉔ Tool boxes

Civil engineering and building
goods

+9.7

+9.9

7. Distribution andstorage equipment

8. Research
management
equipment㊱ Tool wagons

16.2
+2.7

+3.6

22.5

23.0

2,091

0.8

-

18.3

Research and developmentrelated goods

4,732

1.8

-

18.6

Office and housing facility equipment
total

23,111

8.6

20.9㊶ Cleaning utensils

7,004

2.6

-

21.6

-

16.5

㊷ Stationery

2,866

1.1

-

20.3

2.4

-

30.9

㊸ Office miscellaneous goods

3,332

1.2

-

28.1

1.2

-

18.2

㊹ Electric appliances

3,538

1.3

-

23.0

19.3

㊺ OA business machinery

2,268

0.8

-

23.4

-

14.7

㊻ Office furniture

3,803

1.4

-

23.3

2.7

-

18.4

㊼ Interior goods

298

0.1

-

19.2

22,3408.4-

21.4 10. Others㊽ Entire company

2,153

0.8

-

29.0

+12.2

9. Office and housing
facility equipment

Total

+8.4

Points

22.5㉚ Closets and exterior goods⑪

4. Work supply

Trusco's sales

23.0

2,180

0.8

+21.6

40.6

267,476

100.0

+8.8

21.3

Sales increased for thefollowing product groups
related to factory
operations:• Hand tools
YoY change +12.2%
Sales of hand tools and power tools
such as impact wrenches increased• Production processing
goods:
YoY change +10.1%
Sales of measurement equipment
increased• Work supplies:
YoY change +9.9%
In particular, sales of adhesives,sealants, and tape supplies
increased

Sales of distribution andstorage equipment andresearch management
equipment related tocapital expenditure
remained sluggish.

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

17

[Non-consolidated] Changes in sales by category of goods (small category)Sales of consumables such as safety shoes, adhesives, and cutting tools increased
On the other hand, there was a lull in demand for fall arrest equipment and alcohol checkers due to revisions of the law, as well
as demand for coronavirus-related products.

+1,200+1,066+266+557.6%

+200

+50

+218
+25.4%+21.3％+35.0％+21.3％+46.0+12.0％+42+49.3%+41+41.1%+0★Working gloves+333+15.5％

Safety signs

Rags

+392

+400

Poly bags

+311

+498

+17.8％

Impact drivers+322

Impact wrenches+331

Cooling
garments+528

Spot airconditioners+40.0％

Evacuation
supplies+600(Unit: million yen)

Masking tape

Chips

Workbenches
for loading+800

Sealing goods

Adhesives

Safety shoes(JPSA)+1,000+37+18.8%+36+23.1％+34+14.3%+0△57.3％△24.7％△24.8％△46.2％△23.1％△47.7％△50△56.1％△44.8％△7.7％△42△13.1％

△8.9％

△38

△38

Pliers★Splash prevention
partitions

Mesh palettes★ Splash-guard
panelsPower generators△257★General-purpose
face masks△328

Waist belt
lanyard△680

Alcohol checkers

△250

△160
△170

△45

Single-lens eye
protection△136

Waist belts△111

Mesh shelves

～
～

△50

△88
△107

Waist belt-type personal
fall arrest systems

～
～

△57

△55.2％★Hand sanitizers△200

Harnesslanyards△150

Harness-type
personal fallarrest systems△100△46.2％△7.2％△10.5％★: COVID-19 related products

18
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

▮ Private brand product share in net sales[Non-consolidated] Sales of private brand (PB) goods

as of the end of December 31, 2023
Production
processing goods
3.6%

Cutting tools 1.5%
Officeand housing
facility
Research equipment
management
9.6%
equipment
7.4%

Although the sales composition of private brand Trusco products andnational brand products is on a downward trend due to the difference inthe speed of handling expansion, we are brushing up our efforts to
expand private brand product sales.

Categoryof goods

Entire company
Share
Gross profit
marginNet sales

18.1%

Factory
Share
Gross profit
margin36.8%
Year-on-yearchangeNet salese-business

18.6%

Share
Gross profit
margin37.6%
Year-on-yearchangeNet sales

Home center

22.1%
35.2%
Year-on-yearchangeShare
Gross profit
marginHand tool
10.1%

4.3%

Environmental
safety equipment
16.0%

29.3%
Year-on-yearchangeNet sales

48,313+5.3%

33,873+2.6%

13,065+14.2%

1,032

-3.1%

727

+3.8%

522

+1.6%

125

+16.9%

70+3.3%

Production processing
goods

1,726

+6.5%

1,214

+3.3%

462

+16.1%

16-7.3%

Construction goods

4,453

+7.5%

3,028

+2.9%

1,327

+19.5%

62

-2.2%

Total
Cutting tools

Work supply

8,993+10.7%

6,847

Work supply
18.6%

Distribution andstorage equipment
24.0%▮ Sales by sales route and category of goods
Sales route

Construction
goods
9.2%

+7.9%

1,985

+22.1%

85▮ Trend in sales of private brand products(unit: million yen) ( ) YoY change

48,31345,876+3.5%
43,890Hand tool

4,898+10.8%

3,389

+8.5%

1,315

+19.5%

113-8.2%

Environmental safety
equipment
Distribution andstorage equipment
Research management
equipment
Office and housing
facility equipment

7,735

+5.1%

5,605

+3.5%

1,933

+9.4%

171

+8.1%

11,602

+1.0%

7,853

-1.8%

3,223

+10.2%

480-5.5%(+0.7%)

43,44541,302(+5.3%)(+5.6%)(+5.2%)(-5.9%)

3,553

-0.9%

2,401

-5.6%

1,118

+10.4%

6+14.4%

4,622

+4.4%

3,010

+1.4%

1,573

+12.7%

25-26.3%

2019

2020

2021

2022

2023

Share

19.9%

19.4%

19.0%

18.7%

18.1%

Gross profit
margin

35.8%

36.4%

36.2%

35.8%

36.8%

19
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Selling, general and administrative
expenses (SGA)

04

Financial and
Other
Performances[Consolidated] Details of selling, general andadministrative expenses (SGA)[Consolidated] Financial statements and financial
indicators[Consolidated] Capital expenditures[Consolidated] Quarterly business performance andbudget (quarterly)[Consolidated] Quarterly business performance andbudget (cumulative)
20
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Selling, general and administrative expenses (SGA)
Freight and packing expenses increased due to an increase in shipment volume, and salaries and bonuses increased due to paymentof temporary bonuses and incentives, while selling, general and administrative expenses increased by 4.0% year on year due todecreases in depreciation and commission fees.
(Unit: million yen) ( ) YoY change
Salary and bonus
DepreciationFYE December 31, 2023
Freight and
Other
-461
(61st business year)+415
packing expenses
Provisionfor bonuses

+631

+251

39,003(+4.0%)+674
FYE December 31, 2022
(60th business year)～
37,493

Selling, general and administrative expenses 39,003 million yen+1,509 million yen• Provision for bonuses + 674 million yen... Temporary bonus payment (791 million yen)
• Freight and packing expenses: +631 million yen, due to increase in shipping volume and transportationcosts* Freight expenses associated with the User Direct Shipment Service are paid by customers.

～• Salaries and bonuses +415 million yen - impact of monthly achievement incentive payment and change in
the number of months for logis-course bonus payment (in the previous fiscal year, approximately 500 million
yen was paid as a temporary bonus to support livelihood)• Depreciation -461 million yen... Impact of expiration of software amortization period
Impact of delayed system operation• Other +251 million yen...Impact of increase in welfare expenses due to bonus payments, etc. .

21
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Details of selling, general and administrative expenses (SGA)(Unit: million yen)FYE December 31, 2022
(60th business year)

No.

Actual results

1 Salary and bonus
2 Freight and packing expenses
3 Depreciation
4 Welfare expense
5 Commission fee

6 Taxes and dues
7 Provision for bonuses
8 Advertising expenses
9 Traveling expenses and transportation expenses
10 Supplies expenses
11 Utilities expenses

12 Remuneration paid to directors
13 Communication expenses
14 Leasehold and office rents
15 Vehicle expenses
16 Promotion expenses
17 Entertainment expenses
18 OtherTotal

FYE December 31, 2023
(61st business year)

Share in net sales

Actual results

Share in net sales

Change from previous
period2023(60th business year)
Full-year Budget

YoY change

13,036
7,630
6,667
2,343
2,638
1,416
8
505
543
434
537
401
434
357
283
316
42
-104

5.3%
3.1%
2.7%
1.0%
1.1%
0.6%
0.0%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.0%
0.0%

13,451
8,261
6,206
2,553
2,504
1,372
683
587
564
532
473
442
424
347
284
252
139
-77

5.0%
3.1%
2.3%
1.0%
0.9%
0.5%
0.3%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.1%
0.1%
0.1%
0.1%
0.0%

+415
+631
-461
+210
-133
-44
+674
+82
+21
+97
-63
+40
-10
-9
+0
-63
+96
+27

+3.2%
+8.3%
-6.9%
+9.0%
-5.1%
-3.2%
+8,181.8%+16.2%+3.9%+22.5%-11.9%+10.2%
-2.5%
-2.8%
+0.2%
-20.1%+228.7%37,49315.2%

39,00314.5%+1,509Full year budget
and YoY change
in performance

+4.3%
+9.7%
-4.0%
+3.0%
-1.4%
-6.1%
+3,111.6%+15.8%+0.9%+20.0%
+2.8%
+7.5%
-0.5%
+0.1%
+4.0%
-27.6%+205.0%ｰ

13,592
8,366
6,402
2,414
2,602
1,330
264
585
547
520
552
432
432
358
294
229
129
0

+4.0%

39,040

+4.1%

ｰ

22
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Financial statements and financial indicators
Balance Sheet
As of December 31, 2023
Item
AssetsCurrent assets
Cash and deposits
Accounts receivable
Electronically recorded monetary claims operating
Merchandise
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures (net)
Machinery, equipment and vehicles (net)
Tools, furniture and fixtures (net amount)
Land
Construction in progress
Total tangible non-current assets
Intangible assets
Software
Software suspense account
Other
Total intangible non-current assets
Investments and other assets
Investment securities
Deferred tax assets
Deferred tax assets for land revaluation
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets(Unit: Million yen)AmountItem
Liabilities
Current liabilities
43,283 Accounts payable - trade34,322 Short-term borrowings
Long-term borrowings scheduled to be
2,821
repaid within one year
50,848 Accounts payable - other734 Income taxes payable-1 Provision for bonuses
132,008 Other
Total current liabilities
Non-current liabilities
47,724 Long-term borrowings
6,680 Long-term guarantee deposits
Provision for retirement benefits for directors
1,267 (and other officers)
38,747 Other
10,149 Total non-current liabilities
104,569 Total liabilities
Net assets
2,610 Shareholders' equity
1,947 Capital stock
14 Capital surplus
4,572 Retained earnings
Treasury shares
2,529 Total shareholders' equity
673 Accumulated other comprehensive income
Valuation difference on available-for-sale
155 securities
504 Revaluation reserve for land
-135 Foreign currency translation adjustment
Accumulated other comprehensive
3,728 income total
112,870 Total net assets
244,878 Liabilities / Total net assets

Statement of cash flows(Unit: million yen)Amount20,461
10,0002022

2023

ChangeCash flows from operating activities

12,17814,802

2,623

Cash flows from investing activities-5,165-13,113-7,9488,500

Cash flows from financing activities-9,110

1,932

11,043

3,544
4,248
687
2,293
49,735

Effect of exchange rate change on cash and cash equivalents

48

63

14

Net increase (decrease) in cash and cash equivalents-2,049

3,684

5,734

Cash and cash equivalents at beginning of period

41,44939,400-2,049Cash and cash equivalents at end of period

39,40043,085

3,684

31,5002,773
151
134,426
84,162

5,022
4,711
150,298-82
159,950
633
-353
486
765
160,716
244,878

We promote "Ownership Management," believing that owning our own
distribution centers, branch office buildings, data centers, and vehicles,
which are the main arteries of corporate management, will bring thegreatest benefits.

Equity ratio
End of FY 2022
Equity ratio

End of FY 2023
67.1%

Change (pt)
65.6%

-1.5

Other financial indicators
End of FY 2022

End of FY 2023

Change (pt)

ROA (Return on Assets)

6.7%

7.9%

+1.2ptROE (Return on Equity)

7.2%

7.9%

+0.7pt<Our Approach to ROE>
We believe it is important to expand profits and ensure long-term, stable increase by making continuous
investments to enhance corporate value. We believe that ROE should increase as a result of our business where
we place importance on improving the convenience of our customers.

23
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Capital expenditures
Actual and major capital expenditures(Unit: million yen)

Actual investment
in FY 2023

Details of major capital expenditures in 2023

Distribution
equipment

Advance order for installation of distribution equipment and facilities at Planet Aichi (Total expected expenditures:
approx. 9,500 million yen)

2,563

Planet Higashi Kanto: 2nd automated pallet warehouse (total investment amount: approx. 2,700 million yen)

319
419
905
312
900
6,101

Sakai Stock Center Automated pallet warehouse (total investment amount: approx. 1,800 million yen)
Construction of product database “Sterra” (Planned total investment amount: approx. 1,300 million yen)

DigitalEnhancement of core system “Paradise,” etc.
Renovation costs for Osaka head office building (total planned investment: approx. 1,700 million yen)

Buildings
Planet Aichi new construction project (Planned total investment amount: approx. 18,100 million yen)

Annual capital expenditures

Actual investment
in FY 2023 Total

3,855

2,111
7,503
13,469Change in capital expenditures
19,700 million yen
35
39

Distribution equipment
Digital
Buildings

8,000
million yen
123

13,469 million yen

8,700
million yen

38

7
7

4,700
million yen

21

73

7
11
28

75

59
5
15

2019

2020

2021

2022

<Capital expenditures>• The investment amount may fluctuate as the planned amount of capital expenditures includes
expenses for projects at the planning stage.
• The figures for the 61st business year (2023) represent values on a cash-out basis.

2023

24
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Quarterly business performance and budget (quarterly)

FYE December 2032 (61st business year) Full- year [Quarterly]
1st quarter (-2 days)
BudgetNet sales

Gross profit

Selling, general andadministrative expenses (SGA)

Operating income

Ordinary income

Quarterly profit attributable toowners of parent

Share(Unit: million yen)

2nd Quarter (+1 day)YoY change

BudgetShare

3rd Quarter (±0 day)YoY change

BudgetShare

4th Quarter (±0 day)YoY change

BudgetShare

YoY change

Budget65,925

100.0

+7.8

64,535

100.0

+ 8.4

64,898

100.0

+7.7

69,735

100.0

+6.4

Actualresults

65,983

100.0

+7.9

65,407

100.0

+9.9

65,193

100.0

+8.2

71,570

100.0

+9.2

Budget13,65320.7+6.0

13,378

20.7

+ 7.1

13,480

20.8

+ 8.9

15,33622.0+6.5

Actualresults

13,23420.1+2.7

14,953

22.9

+19.7

13,419

20.6

+ 8.4

15,915

22.2

+10.5

Budget

9,714

14.7

+3.4

10,209

15.8

+ 1.6

9,746

15.0

+6.2

10,258

14.7

+15.6

Actualresults

9,319

14.1

-0.8

9,712

14.8

-3.4

9,413

14.4

+2.6

10,55814.8+ 19.0

Budget

3,939

6.0

+12.9

3,169

4.9

+ 29.6

3,734

5.8

+16.7

5,078

7.3

-8.2

Actualresults

3,915

5.9

+12.3

5,240

8.0

+114.3

4,005

6.1

+25.1

5,356

7.5

-3.2

Budget

3,981

6.0

+8.4

3,239

5.0

+ 30.8

3,789

5.8

+16.5

5,184

7.4

-8.5

Actualresults

3,972

6.0

+8.2

5,296

8.1

+113.9

3,946

6.1

+21.3

5,453

7.6

-3.7

Budget

2,719

4.1

+7.3

2,213

3.4

+ 29.0

2,595

4.0

+16.9

3,550

5.1

-14.6

Actualresults

2,675

4.1

+5.6

3,390

5.2

+97.6

2,702

4.1

+21.7

3,499

4.9

-15.8

* The budgets for the first and second quarter are based on the budget at the beginning of the period, and the budgets for the third and fourth
quarter are based on the revised budget announced on August 10, 2023.
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

25

[Consolidated] Quarterly business performance and budget (cumulative)FYE December 2032 (61st business year) Full- year [Cumulative]
1st Quarter (+2 days)
BudgetNet sales

Gross profit

Selling, general andadministrative expenses (SGA)

Operating income

Ordinary income

Quarterly profit attributable toowners of parent(Unit: million yen)

2nd Quarter (+3 days)

Share

YoY change

Budget3rd Quarter (+3 days)

Share

YoY change

BudgetShare

Full year (+3 days)

YoY change

BudgetShare

Year-on-yearchangeBudget65,925

100.0

+7.8

130,460

100.0

+8.1

196,345

100.0

+ 8.5

266,080

100.0

+ 8.0

Actualresults

65,983

100.0

+7.9

131,390

100.0

+8.9

196,583

100.0

+8.7

268,154

100.0

+8.8

Budget13,65320.7+6.0

27,031

20.7+6.5

41,634

21.2

+10.3

56,970

21.4+9.2

Actualresults

13,23420.1+2.7

28,188

21.5

+11.1

41,60721.2+ 10.257,522

21.5

+10.3

Budget

9,714

14.7

+3.4

19,92315.3+2.5

28,78214.7+0.6

39,040

14.7+4.1

Actualresults

9,319

14.1

-0.8

19,03114.5-2.1

28,44514.5-0.6

39,003

14.5+4.0

Budget

3,939

6.0

+12.9

7,108

5.4

+19.8

12,852

6.5+40.7

17,930

6.7+22.2

Actualresults

3,915

5.9

+12.3

9,156

7.0

+54.3

13,162

6.7+44.1

18,5196.9+26.3

Budget

3,981

6.0

+8.4

7,220

5.5

+17.4

13,036

6.6+38.7

18,220

6.8+20.9

Actualresults

3,972

6.0

+8.2

9,269

7.1

+50.8

13,215

6.7+40.6

18,6697.0+23.9

Budget

2,719

4.1

+7.3

4,932

3.8

+16.0

8,640

4.4

+33.5

12,190

4.6+14.7

Actualresults

2,675

4.1

+5.6

6,066

4.6

+42.7

8,768

4.5

+35.5

12,2684.6+15.4* The budgets for the first and second quarter are based on the budget at the beginning of the period, and the budgets for the third and fourth
quarter are based on the revised budget announced on August 10, 2023.
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

26

05

Various key
indicators

Merchandise

Logistics
Sales

DigitalHuman resources(non-consolidated)
27
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (goods)
Key indicatorsFYE December 31, 2022
(60th business year)

FYE December 31, 2023
(61st business year)

Plan for FYE December 31,
2024 (62nd business year)

Number of items in inventory

562,026

593,554625,000

Total inventory (10,000) [Nonconsolidated]

5,223

5,587

5,800

441

494

530

3,272

3,509

3,709

329

337

357

10,14912,161

13,513New merchandise sales
composition ratio (last 3 years) (%)

12.3

13.2

13.7

Private brand net sales (million yen)

45,87648,31351,700

Number of items listed in Trusco
Orange Book* (items)

374,000

369,000

388,000

No. of items featured on Trusco
Orange Book.Com (Free site)(Items)3,167,188

4,108,818

5,400,000

Inventories (100 million yen) [Nonconsolidated]
Total number of suppliers

Merchandise

Of these, number of overseas
suppliers (companies)
New inventory sales (million yen)[Non-consolidated] Change in sales of
newly listed goods on Trusco Orange
Book.Com in company-wide sales* Includes the number of QR code scans to visit Trusco Orange Book.Com

28
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (logistics)
Key indicators

LogisticsFYE December 31, 2023
(61st business year)

91.7

92.1

Inventory shipment rate (%)

No. of direct
shipments (10,000s)(No. of direct
shipments (10,000s))

92.5

No. of direct shipments to users(10,000s)

355

486

620

No. of direct shipments to users(10,000s)

437

598

760

Net sales(100 million yen)

2020

2021

2022

2023

2024

Current(Plan)
business year

Changes in number of inventory items andinventory shipment rate (instant delivery rate)

0

90.5

91.0

91.3

0

91.7
562,026

Share by Delivery Category (by number of shipments)

92.1

User visits0.3%
Distributor visits 0.8%

593,554499,96400

FYE December 31, 2022
(60th business year)

Changes in the number of
direct delivery to users(number of lines) and sales

Plan for FYE
December 31, 2024
(62nd business year)2022

442,436
392,100

Delivery to
distributors
67.7%

Route shipments todistributors
18.5%

To users
Routeshipments
12.7%- Merits Cut delivery times by half, cut shipping
load by half
Cut workload by half, cut packing
materials by half
Cut environmental impact by half

I-Pack®
[High-speed automated packaging
and shipping line]

00Number of items in inventory0

Inventory shipment rate (%)

0

2023

Delivery to
distributors
65.1%

Route shipments todistributors
17.8%

Distributor visits 0.7%

2019

2020

2021

2022

2023

To users
Routeshipments
16.0%

User visits 0.3%

Shipping capacity:

720 cs/h per line,
approx. 24 workers
I-Pack introduced to: Tohoku, Saitama (3lines), Tokai, Osaka 6lines in total* One line is scheduled to be introduced toPlanet Higashi Kanto in 2024.

29
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (logistics)FYE December 31, 2022
(60th business year)

Key indicatorsFYE December 31, 2023
(61st business year)

Plan for FYE December 31,
2024 (62nd business year)

Logistics

Number of chartered vehicledeliveries

162

153

137

Number of own company
deliveries

116

123

140

Rate of own company
deliveries (%)

41.7

44.6

50.5

20 hours 10 minutes
4 seconds

19 hours 13 minutes
43 seconds

ｰ

113

117

115

Delivery lead time*

Labor cost perincoming/outgoing shipment

Delivery service and internal transportation service:
Number of units
No. of units

Change from theend of previous
fiscal year

276

-2

Chartered vehicle delivery service(contracted delivery service)

153

-9

Own company delivery service

123

+7

31

+1

Chartered vehicle delivery service(contracted delivery service)26±0

Own company delivery service

5

+1

307

-1

Total number of deliveries

Internal transportation service

Delivery service and internaldelivery service Total* Companywide, including primary + secondary provision and beyond, average ofmorning and afternoon deliveries[Non-consolidated] Changes in inventory disposal and inventories
DeliveryWe are reviewing delivery and internaltransportation services to optimize the numberof units by streamlining delivery routes andinternal movement of inventory. We are also
increasing the number of own company
delivery services (delivery by the Company's
employees) to improve customer service. The
current own company delivery rate is 44.6%.
We plan to increase this to 50.5% in 2024.

2019

2020

2021

2022

2023

Inventory disposal(million yen)
Inventories(100 million yen)

42

50

55

65

67

427

406

416

441

494

Disposal rate (%)

0.10

0.12

0.13

0.15

0.14
30

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (sales)
Trends in the number of MRO stockers
installed and sales
Net sales (million yen)FYE December 31, 2022
(60th business year)

Key indicatorsFYE December 31, 2023
(61st business year)

Sales

Number of corporate clients

5,575

5,632

5,680

Number of client accounts

31,61433,22534,700No. of companies adopting MRO
Stocker

775

1,203

1,430

No. of companies connected toOrange Commerce

2,233

2,447

2,670

225

228

240

Number of sales (millions)

35,000

Number of accounts

33,225

Number of companies

25,46626,327

27,14026,16826,881

27,55023,68320,000
5,447

5,415

5,348

5,333

5,323

775

329

348
194

66
2022

2023

10,00031,61429,561

30,000

5,592

5,515

5,527

5,575

9,000

-Merits-

8,000

Management

7,000

cost

0 yen

Delivery0 min.

Waste

0

5,632

6,000

15,0005,000

10,000

4,000
2014

2015

2016

2017

2018

1203

No. of companies installing MRO Stocker

2021[Consolidated] Change in number of sales accounts and companies

25,000Plan for FYE
December 31, 2024
(62nd business year)

2019

2020

2021

2022

2023

Consolidated Consolidated Consolidated Consolidated Consolidated
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

31

Key indicators (digital)FYE December 31, 2022
(60th business year)

Key indicatorsFYE December 31, 2023
(61st business year)

Plan for FYE December 31,
2024 (62nd business year)

Since launching our Internet ordering system"Web Trusco" in 2002, we have been

85.2

System order rate (%) *1

87.1

88.0

automating ordering. Additionally, starting

Digitalwith the launch of our core system "Paradise

Rate of automatedquotations (%) *2

22.6

Rate of online quotation
requests (%)

27.6

46.0

47.3

31.0
49.0

3" in 2020, we are striving to improve
convenience with the aim of automating alltasks that can be automated in the supply
chain.

*1 Total number of orders (2023): 41.08 million*2 Total number of quotations (2023): 8.72 million
System order rate
Order type(as of the end of December 2023)
Number oforders(thousand lines)

Line share

Change inshare from theprevious fiscal
year (pt)

Order value(million yen)Price share

YoY change inprice share(pt)

Trusco Orange Book.Com
Internet ordering (for distributors and users)

15,865

38.6%

+0.0

116,041

43.4%

+1.6

Trusco EDI
Data linkage with distributor ordering system

9,767

23.8%

+2.0

38,420

14.4%

+0.9

Orange Commerce
Linkage with users' purchasing system

1,076

2.6%

+0.2

7,901

3.0%

+0.4

EOS
Home center electronic ordering system

9,059

22.1%

-0.3

21,966

8.2%

+0.0

Total

35,769

87.1%

+1.9

184,330

68.9%

+2.7

▮ AI-based estimation system "Swift Estimator"[Automated estimate rate: 22.6%]
Automated quotations with AI
One of our challenges is how to respond quickly to theaverage of 30,000 quotation requests we receive from ourclients each day. In response, the company introduced "Swift
Estimator," an AI-based automatic quotation response
system, to promote the automation of quotations throughspecial price optimization that automatically calculates
appropriate prices for products on a regular basis based on
actual orders and quotations. This has led to an improvementin the speed of response to customers (minimum 5 seconds).
(Automated estimate rate: 22.6% (as of December 31, 2022))

AI-based comment analysis
Data analysis of actual
resultCustomer requests a quote

Data analysis

Quotation response

Receive a quotation
response in seconds.

32
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (human resources)
Number of Employees [Consolidated]

Average age and annual income

As of FYE December 31, 2023 (Unit: persons)Female

Male

Total

Year-on-yearchangeExecutives

1

11

12

+2

Executive officers

0

0

0

-1

Career (overseas and domestic)

150

403

553

-11

Digital career

0

0

0

±0

Logistics career

0

1

1

+1

Carrier (regional)

17

19

36

+27

Specialist

10

13

23

-4

Area

291

282

573

-28

Expert

1

0

1

+1

Logistics area

3

28

31

+5

Logistics

95

258

353

+26

Contract employees

1

44

45

+7

Overseas subsidiaries

19

23

42

-1

2

0

2

±0

0

1

1

±0

Employee total

589

1,072

1,661

+22

Part-time employees

1,003

367

1,370

+65

Seconded to health insurance
association
Seconded to Nakayama Visually
Impaired Welfare Foundation

Total

1,593

1,450

3,043

+89

Share of female employees: 35.5%, Number of female sales staff members: 44, Female
employees in career-track positions: 28.3%* The number of part-time employees represents the actual number of such workers under
employment.

Average age (years)

Average annual income (10,000 yen)FemaleMale

Entirecompany

2023

33.2

43.4

39.9

775

627

526

662

2022

33.0

43.4

39.8

771

633

494

661

2021

32.8

43.2

39.6

724

596

456

615

2020

32.1

41.9

38.4

721

601

461

619

2019

31.3

42.0

38.2

758

642

492

655

CareerArea

EntireLogistics company* The total average annual income includes
executive officers and excludes financial bonds
provided as retirement benefits.
* The payment of performance-based bonuses
commenced in FY2014. In 2019, they werediscontinued, and bonuses decreased.
* Consolidated accounting has been applied to
the fiscal year ended Dec. 2019 and later fiscal
years. From the fiscal year ended Dec. 2019
onwards, the average age figure is on aconsolidated basis, whereas all the averageannual income figures are on anonconsolidated basis.
* The average annual income for 2022 includes
the temporary bonus paid to support living
expenses due to the soaring costs of goods.
* The average annual income for 2023 does notinclude the temporary bonus. The averageannual salary including temporary bonuses is
7.07 million yen.

Numbers of incoming and outgoing employees [Consolidated]
2019
FemaleNo. ofemployees

No. of incoming
employees
No. of outgoing
employees
Turnover ratio
(%)

585

Male

1,071
1,656
52
57
109
42
44
86
6.7
3.9
4.9

2020
Female
589

Male

1,085
1,674
41
46
87
37
33
70
5.9
3.0
4.0

2021
Female
571

2022

Male

1,061
1,632
26
25
51
45
45
90
7.3
4.1
5.2

Female
577

Male

1,062
1,639
47
51
98
39
44
83
6.3
4.0
4.8

End ofDecember 2023
Female

Male

589

1,072
1,661

59

64
123

49

49
98

7.7

4.4
5.6

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

33

06
Management
Plan[Consolidated] Full-year Management plan for the 62nd
business year
[Consolidated] 62nd Business Year Management planby sales route[Consolidated] Selling, general and administrative
expenses (SGA) for the 62nd business year
[Consolidated] List of 62nd Business Year capital
expenditure plans[Consolidated] Quarterly budget (quarterly)[Consolidated] Quarterly budget (cumulative)
Vision - Medium-term management ability targets 34
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Full-year Management plan for the 62nd business year
Regarding gross profit, we expect approximately 500 million yen as inventory valuation gains due to product price increases.
Regarding selling, general and administrative expenses, we expect an increase in the number of employees and in salaries andbonuses due to achievement incentives, etc., and an increase in net sales and in freight and packaging expenses due to an increase indirect shipments to users.
▮ Plan for FYE December 31, 2024 (62nd business year)
FYE December 31, 2023
(61st business year)

Plan for FYE
December 31, 2024
(62nd business year)

Share

Year-on-yearchangeShare

Net sales

268,154 million yen

ｰ284,710 million yen

ｰ

+6.2%

Gross profit

57,522 million yen

21.5%

59,760 million yen

21.0%

+3.9%

Selling, general andadministrative expenses (SGA)

39,003 million yen

14.5%

41,150 million yen

14.5%

+5.5%

(Depreciation included in SGA)

6,206 million yen

2.3%

6,375 million yen

2.2%

+2.7%

Operating income

18,519 million yen

6.9%

18,610 million yen

6.5%

+0.5%

Ordinary income

18,669 million yen

7.0%

18,850 million yen

6.6%

+1.0%

Profit attributable to parent

12,268 million yen

4.6%

14,740 million yen

5.2%+20.1%

46.50 yenｰ

49 yenｰ+2.50 yen

Dividend per share

35
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] 62nd Business Year Management plan by sales route▮ FYE December 31, 2024 (62nd business year) plan by sales routeFYE December 31, 2023
(61st business year)

Share

Year-onyearchangeFYE December 31, 2024
(62nd business year)
plan

Share

Year-onyearchangeFactory route

182,188 million yen

67.9%

+6.8%

192,288 million yen

67.5%

+5.5%

e-business route59,121 million yen

22.1%+14.6%

64,025 million yen

22.5%

+8.3%

Home center route24,260 million yen

9.0%

+9.5%

25,400 million yen

8.9%

+4.7%

Overseas route2,583 million yen

1.0%+22.5%

2,997 million yen

1.1%+16.0%

268,154 million yen

100.0%+8.8%

284,710 million yen

100.0%+6.2%◆ Regarding budget formulation, the budget is used as the entire company’s budget, which is the total of the "annual budget ofeach branch prepared by the branch manager throughout Japan."
The branch managers, who are familiar with their market, formulate their respective branch's budget as they are in charge ofdeveloping their branch strategy including staffing and are ultimately accountable for their branch.
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

36

[Consolidated] Selling, general and administrative expenses (SGA)
for the 62nd business year
Plan: 41,150 million yen (+5.5%, +2,145 million yen compared to previous year)
FYE December 31, 2023 (61st business year)

Account title
Actual results

Year-on-yearchangeFYE December 31, 2024 (62nd business year)

Plan

YoY Change (amount)

YoY change①

Salary and bonus

13,451 million yen+3.2%

14,085 million yen+633 million yen

+4.7%

②

Freight and packing expenses

8,261 million yen+8.3%

8,880 million yen+618 million yen

+7.5%

③

Depreciation

6,206 million yen-6.9%

6,375 million yen+168 million yen

+2.7%

④

Other

11,084 million yen+9.1%

11,810 million yen+725 million yen

+6.5%

Total

39,003 million yen+4.0%

41,150 million yen+2,146 million yen+5.5%(1) Salaries and bonuses: +633 million yen
Monthly achievement incentive payments (+188 million yen)
Increase in part-time employees and hourly wages (+178 million yen)

(2) Freight and packing expenses: + 618 million yen
Impact of increased shipping volume and transportation costs(+367 million yen)
Impact of increased packaging costs (+143 million yen)

(3) Depreciation +168 million yen
Renovation work of Osaka head office building(+88 million yen)
Planet Osaka/Planet Saitama shipping equipment(+44 million yen)

* Freight expenses associated with the User Direct Shipment Service are paid by customers
37
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] List of 62nd Business Year capital expenditure plans
Major capital expenditures and plans(Unit: million yen)

Details of major capital expenditures in 2024

2024 Investment plan

Planet Saitama “Skypod” introduced (total investment amount: approx. 1,000 million yen)

Facilities
Purchase of delivery trucks and commercial vehicles (total investment amount: approx. 200 million yen)
Trusco Orange Book.Com/Strengthening Orange Commerce infrastructure (total investment amount: approx. 1,400 million yen)

Fundamental renovation and functional enhancement of core system “Paradise” (Planned total investment amount: approx. 700 million yen)

DigitalEC cross construction (total investment amount: approx. 500 million yen)
Planet Aichi new construction project (Planned total investment amount: approx. 18,100 million yen)
Planet Niigata new construction project (total planned investment: approximately 16,500 million yen)

Buildings
Renovation costs for Osaka head office building (total planned investment: approx. 1,700 million yen)
Planet Saitama tent warehouse construction (total planned investment: approx. 500 million yen)

16
35

13,400
million yen
8,000
million yen
Distribution
equipment
Digital
Buildings

8,700
million yen

59
5
15
令和２年
（2020）

令和３年（2021）

1,680
3,596

16,603
21,879Annual capital expenditures

Change in capital expenditures

300
108
684
400
360
9,849
5,600
810
335

Expected
expenditures
21,879 million yen

38

7
7

4,700
million yen

21

73

7
11
28

75

令和４年
（2022）

令和５年（2023）

166<Capital expenditures>• The investment amount may fluctuate as the planned amount of capital expenditures includes
expenses for projects at the planning stage.
• The figures for the 61st business year (2023) represent values on a cash-out basis.

38

令和６年
（2024）
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Quarterly budget (quarterly)

FYE December 31, 2024 [Quarterly](Unit: million yen)

1st Quarter (-2 days)
BudgetBudgetNet sales

Selling, general andadministrative expenses (SGA)

BudgetQuarterly profit attributable toowners of parent

Share

YoY change

BudgetShare

YoY change

BudgetShare

YoY change

69,035

100.0

+4.6

69,733

100.0

+6.6

70,345

100.0

+ 7.9

75,597

100.0

+5.6

14,27320.7+7.8

15,08621.6+0.9

14,558

20.7

+ 8.5

15,843

21.0

- 0.5

10,003

14.5+7.3

10,33914.8+6.5

10,164

14.4

+ 8.0

10,644

14.1

+0.8

4,270

6.2

+9.0

4,747

6.8

-9.4

4,394

6.2

+9.7

5,199

6.9

-2.9

4,306

6.2

+8.4

4,800

6.9

-9.4

4,443

6.3

+ 12.6

5,301

7.0

-2.8

2,945

4.3

+10.1

3,282

4.7

-3.2

3,043

4.3

+ 12.6

5,470

7.2

+42.2

Actualresults

Actualresults
BudgetOrdinary income

BudgetActualresults

BudgetOperating income

YoY change

4th Quarter (+1 day)3rd Quarter (±0 day)Actualresults
BudgetGross profit

Share

2nd Quarter (±0 day)Actualresults
BudgetActualresults

39
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Quarterly budget (cumulative)FYE December 31, 2024 [Cumulative](Unit: million yen)

1st Quarter (-2 days)
BudgetBudgetNet sales

Selling, general andadministrative expenses (SGA)

BudgetQuarterly profit attributable toowners of parent

Share

YoY change

BudgetShare

YoY change

BudgetShare

YoY change

69,035

100.0

+4.6

138,768

100.0

+5.6

209,113

100.0

+6.4

284,710

100.0

+6.2

14,27320.7+7.8

29,35921.2+4.2

43,91721.0+5.6

59,76021.0+3.9

10,003

14.5+7.3

20,34214.7+6.9

30,50614.6+7.2

41,150

14.5

+ 5.5

4,270

6.2

+9.0

9,017

6.5

-1.5

13,4116.4+1.9

18,610

6.5

+0.5

4,306

6.2

+8.4

9,106

6.6

-1.8

13,5496.5+2.5

18,850

6.6

+1.0

2,945

4.3

+10.1

6,227

4.5

+2.7

9,270

4.4

+ 5.7

14,740

5.2+16.8

Actualresults

Actualresults
BudgetOrdinary income

BudgetFull year (-1 day)Actualresults

BudgetOperating income

YoY change

3rd quarter (-2 days)

Actualresults
BudgetGross profit

Share

2nd quarter (-2 days)

Actualresults
BudgetActualresults

40
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Vision - Medium-term management ability targets 1. We want to be a company that can hold 1 million items ininventory by 2030.

• The number of items in stock in 2023 will be 590,000 items, and Planet Aichi
will be operational in July 2026 with the capacity to hold 1 million items.

4. We want to be a company without inventory work.

• At locations where free-location is introduced (9 locations
including Planet Saitama and Planet Osaka), a system has been
introduced whereby inventories are taken at the same time asreceiving and shipping operations, thereby eliminating the needfor closing inventories.

5. We want to be a company that can ship directly tousers without stress, even if we are a wholesaler.

2. We want to be a company that can take orders 24 hours a day
and ship 365 days a year.

• From 2019, we will start accepting orders 24 hours a day at Trusco Orange
Book.Com.
Available for shipping other than on Sundays

3. We want to be a company without product shortages, incorrect
orders, or incorrect shipments.

• At the same time as expanding the number of items in stock, we implemented
inventory management using the "ZAICON3" inventory management system,
which predicts and calculates the required number of products in stock basedon sales results.
Inventory shipping rate is 92.1% (+0.4pt compared to previous year)• Reduced incorrect orders due to improved system order rate of 87.1% (+1.9pt
compared to previous year)• Introduced material handling equipment such as GAS (gate type sorting
system), and the misplacement rate was 0.022% (1 in 5,000 lines)• I-Pack [high-speed automated packing and shipping line]
introduced at Planet Saitama, Planet Osaka, Planet Tokai andPlanet Tohoku, with an annual turnover of 29,700 million yen and4.86 million units shipped directly to users.
• 2024 sales target for direct shipments to users: 35,600 million yen,
6.2 million units
Environmental conservation through user direct shipment
service by wholesalers
Users
Customers
With direct shipments
to users

Cut delivery times
by half
Cut packaging materials
by half
Delivery freight
expenses halved
Cut environmental
impact by halfAwarded in FY2022
Business systems and services

6. We want to be a company that can respond toquotations instantly.

• The overwhelming speed of the automatic response speed of the
AI-based estimation system "Swift Estimator" has been wellreceived and its use has increased, with 2.4 million estimates(27.6% of all estimates) being automatically generated in 2023.
41
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Vision - Medium-term management ability targets -7. We want to be a company that can achieve the"fastest," "shortest," and "best" deliveries in theindustry.

• Introduced 1,203 MRO stockers (+428 compared to the previousyear) to achieve the ultimate immediate delivery with a delivery
time of 0 days.
• Achieve the best and most diverse delivery formats, such as user
direct shipment services and customer product pick-up services.

9. We want to be a company that is active in recycling, reuse, andreturnables.

• Since 1998, we have been operating the repair workshop "Naojiro", with salesof 2,200 million yen in 2023 (+21.2% compared to the previous year)• Developed private brand products with low environmental impact, such asreusable packaging materials and return cushions.

10. We want to be a platform operator that supports Japanesemanufacturing.

• In 2024, the “Sterra” product database will be renewed to hold product data
for more than 10 million items.
• We are building an EC site where users can easily find and purchase theproducts they need

11. We want to be a company that can rewrite the conventional
thought, customs, set theories, and playbook of the industry.
8. We want to be a company with the smallest possible
environmental impact.

• Planning inventory expansion strategies, strengthening “Niawase + Yuchoku”(assortment & direct delivery to users), ownership management, abolishingbills, rival partnership strategies, etc.

• Half the environmental impact with “Niawase + Yuchoku”(assortment & direct delivery to users)
Other benefits include cutting delivery times, packaging materials,
delivery fees and workload by half
42
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

07
ESG Information

Trusco's "Gentleness for the Future" Project
Sustainability indicators
Relationship with society & corporate
governance43
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Trusco's "Gentleness for the Future" Project

Trusco's "Gentleness for the Future" Project
We have been making various environmental efforts under our environmental philosophy "Gentleness for the Future"since 1998, based on our desire "to be a global environment-friendly company so that our small efforts will lead togreat compassion for the future."
The idea of connecting the global community to the future has been ingrained in the company for more than 20 years
before the term "sustainability" became popular.
Until now, "Gentleness for the Future" has only referred to the environment. From now on, as part of Trusco's"Gentleness for the Future" Project, we will work toward the future of people and society, including the global
environment.
Scan here
for details"Gentleness for the Future" Basic Policy - TSV
Under the motto, "Business must serve people and society," the Company will create both social value andcorporate value (TSV*) through its businesses to help resolve social issues and build sustainable local communities.

* The term TSV was created by combining Trusco and Creating Shared Value (CSV).

Based on this basic policy, we will continue our efforts toward the future of people and society.
44
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Sustainability indicators
CO₂ emissions (as of the end of 2023)
CO₂ emissions from fuel use (Scope 1) 2,284t-co₂ / CO₂ emissions from electricity use (Scope 2) 6,900t-co₂
CO₂ emissions in the supply chain (Scope 3* ) 1,791,867t-co₂ * Only Scope 3 results are for 2022.

▮ CO₂ emission reduction through various services:

Annual CO₂ emission reduction

15,829t-CO₂
Reduction(t-co₂)

Assortment and direct
delivery to users

2,549

MRO Stocker

4,816

Reduction calculation formula

Packaging material
usage halved

Packaging material
waste halved

Delivery frequency
reducedDelivery frequency
halvedNo purchasing

Workshop

NaojiroRepair workshop"Naojiro"

2,469

Fixed cost logistics(fixed route deliveries)

4,461

Wide range of
inventory

1,534

Emissions from newpurchases

No packaging
materials used

Emissions when repaired with “Naojiro”

No packaging
material waste

Delivery distance
reduced45
Emissions when each shipment ismade from a supplier to a distributor

Emissions when shipped in bulk as
Trusco inventory

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Sustainability indicators
Workshop

Trusco power generation installations: at 19 locations
Annual solar power generation in 2023

2,687,468kWh* Equivalent to the annual electricity consumption of about 600 households(From the Ministry of the Environment's website Survey on the Actual Conditionsof Carbon Dioxide Emissions from Residential Sector")

Renewable energy power self-sufficiency

16.7%

Environmental measures for Trusco’s products
In product planning and development for our own brand "Trusco," we have establishedenvironmental standards such as "resource saving," "reducing waste," and "long-lastinguse," and are promoting environmentally friendly product development from all aspects,
from product design to product use and disposal.

NaojiroRole of repair workshop "Naojiro"

It is a service that maintains the safety and precision essential for pro
tools, and aims to reduce the environmental impact and contribute tocost reduction by allowing familiar tools and equipment to be used for along time. In January 2022, the Company will relaunch its Naojiro section
to popularize and enhance this service.
8 services of repair workshop "Naojiro"
RepairRegrinding

Calibration

Reuse

Processing

Maintenance

Assembly

Construction
and installation

Sales of repair workshop "Naojiro" (unit: million yen)
2,204

Trusco double roll tape
Product number: GNT5050E etc.

50M duct tape with a small core. It can be used
twice as much, but the storage space is halved. It
is a tape that can be used twice as long, reduces
replacement by half, reduces waste by half, andcontributes to protecting the environment.

1,817

1,708

2019

1,549

1,596

2020

2021

2022

2023

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

46

Relationship with society & corporate governance“Trusco Unknown Gulliver”, TV program provided
by a single company
This is a program provided by a single company that conveys our company's
desire to "give pride and vitality to Japan by presenting world-class Japanesecompanies.” In each episode, the ways and ideas of a Japanese company arepresented.
Started in 2017

Open judge system (OJS = 360 degree evaluation)
This is our company's unique evaluation system, in which employees areevaluated not only by their superiors, but also by colleagues andsubordinates. The purpose is to give feedback in evaluation commentsthat will lead to behavioral changes in each employee.
Type

Frequency

Operation details

Employeeevaluation
OJS

Twice ayear

An OJS evaluation will be conducted on an employee
among other employees who work in the same workplace(superiors, colleagues, subordinates), then the results will
be reflected in that employee’s evaluation

Started in 2003

Promotion
OJS

Once ayear

All employees who know that employee will evaluate
him/her, then the results will be reflected in how he/she ishandled going forward (receiving a promotion, etc.)

Started in 2001

* All full-time and part-time employees, excluding executives, are subject to evaluation.

Board of directors meeting (management meeting)Decisions are made at the board of directors meeting, which is generally
held once a month. In order to ensure a broader perspective andtransparency, we seek the opinions of a wide range of participants, including
executive officers and general managers.

Donations to the NGO Peshawar-kai
Started in 2020
In Afghanistan, where there is an ongoing drought,
we are donating to support the Peshawar-kai,
which engages in comprehensive ruralreconstruction projects with the idea that “oneirrigation canal will do more good than 100
doctors”.
The late Dr. Tetsu Nakamura
with Afghan workers

Board of directors meeting(management meeting)in November 2022
47
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

08
Reference
Information

Stock information
Index comparison in the industry
The Company's sales index and industrial
production index

48
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Stock information
Shareholder Information (Unit: persons)
End ofJune 2021

End ofDecember 2021

End ofJune 2022

End ofDecember 2022

End ofJune 2023

End ofDecember 2023

Shareholders total

14,903

14,406

16,212

15,46615,111

14,798Holder of share

14,03013,527

15,19014,436

13,79813,534

Holder of shares less than one unit

872

878

1,021

1,029

1,312

1,263

Treasury shares
Financial institutions and securities
companies
Domestic corporations

1

1

1

1

1

1

69

61

59

55

53

54

544

533

546

540

542

535

Overseas corporations, etc.

203

203

212

222

217

213

Individuals and others

14,086

13,60815,394

14,64814,29813,995

Treasury shares

1

1

1

1

1

1

Change in stock price index

January 2010
Movements of each indicator are quantified with the figures in January 2010 set as 100.

TruscoNakayama(2,446 yen)
387.0
Nikkei Stock
Average(33,464.17 yen)
328.1
TOPIX
(2,366.39pt)
262.6

Wednesday, January 31, 2024
The Company's Stock
Closing price
2,535 yen
Nikkei Stock Average
Closing Price
36,286.71 yen
TOPIX
2,551.10pt

49

December 2023
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Index comparison in the industry
Performance of trading companies and direct sales companies (listed companies) in the same industry[Wholesale]
Closing monthYear-on-yearchangeNet sales (million yen)
YAMAZEN CORPORATION

2023

March

YUASA TRADING CO.,LTD.

2023

March

Trusco Nakayama Corporation 2023

December

NICHIDEN Corporation

2023

March

MARUKA FURUSATOCORPORATION

2022

DecemberNaito & Co., Ltd.

2023

February

SUGIMOTO & CO., LTD. 2023

March

Actualresults
Actualresults
Actualresults
Actualresults
Actualresults
Actualresults
Actualresults-

Total of 7 companies

Marketcapitalization(100 million yen)

527,263

+5.1

1,208

504,806

+9.1

1,090

268,154

+8.8

1,673

131,609+6.2

880

162,416

ｰ

620

44,457+1.9

79

45,558+5.7

259

1,684,263

ｰ-Trading companies in the machine tools industry include
the companies shown on the left, but they operate
differently in the wholesale and retail sectors, and eachhandles different core products.
The Company does not handle large machinery such asmachine tools, and mainly handles consumables.

[Retail]
Closing month
Net sales (million yen)

Marketcapitalization
Year-on-year(100 million yen)changeMISUMI Group Inc.

2023

March

Actualresults

373,151

+1.9

7,319

MonotaRO Co.,Ltd.

2023

December

Actualresults

254,286

+12.5

7,021

627,437--

Total of 2 companies

ｰ* For companies that announce consolidated accounting, figures forconsolidated accounting are shown.
* All figures represent actual results and forecasts announced as ofFebruary 5, 2024.
* Market capitalization is based on the closing price on January 31,
2024.
50
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

The Company's sales index and industrial production index
Changes in the Company's sales index and industrial production index

140.0

Trusco Nakayama
Sales Index
125.7

120.0

115.5
107.5
100.0

100.0

105.4

105.3

104.1

Industrial
production index

80.0

2020

2021

2022

2023
51

*Index standard: Year 2020 set as 100.
*The industrial production index is created based on the figures published by the Ministry of Economy, Trade and Industry as of February 2, 2024.
Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.