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

Published by:First Quarter(Securities code: 9830)

Business Administration Headquarters, Corporate Planning Division,
Public Relations & IR Section
Post code: 105-0004
Trusco Fiorito Bldg. 10th floor, 4-28-1, Shinbashi, Minato-ku, Tokyo 105-0004, Japan
TEL：03-3433-9840 FAX：03-3433-9881
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.
E-mail： info@trusco.co.jp

1

Table of Contents
01. Company Profile …………………… P.3
Company overview
Business flow

04. Financial and Other………………… P.20
Performances[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
Major capital expenditures for the current fiscal year

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

05. Various key indicators

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

06. Management Plan…………… P.26

Digital / Merchandise / Sales / Logistics / Human Resources………………… P.33

03. Sales Performance ……………… P.11

[Consolidated] Quarterly business performance and budget (quarterly)[Consolidated] Quarterly business performance and budget (cumulative)
Three-year Management Plan
Vision - Capacity targets -[Consolidated] Business performance by sales route[Non-consolidated] Changes in sales by category of goods[Non-consolidated] Sales by category of goods[Non-consolidated] Sales of private brand (PB) goods

07. ESG Information

This document contains statements regarding future forecasts of business performanceand business plans. Such statements are not guarantees of future performance andinvolve risks and uncertainties.
Please note that future performance may differ from the planned figures due tochanges in the management environment and other factors. This document is for
informational purposes only and the Company is under no obligation to update it with thelatest information available at this time.

…………………… P.38

TRUSCO's "Gentleness for the Future" Project
Sustainability indicators
Other environmental measures and initiatives
Relationship with society & corporate governance

08. Reference Information …………… P.44
Stock information
Index comparison in the industry
The Company's sales index and industrial production index

2
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

01

Company
ProfileCompany overview
Business flow

3
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Company overview
Company
name

TRUSCO Nakayama Corporation

Founding

May 15, 1959

Corporate message

GAMBARE!! JAPANESE MONODZUKURI

Tetsuya Nakayama, President
Representative

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

Head offices

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

Number of
offices

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
Number of
employees

First section of the Tokyo Stock Exchange (Code number: 9830)

2,963 (Consolidated)

Credit rating

Single A (Rating and Investment Information, Inc.)

Line ofbusiness

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 toimprove the convenience of materials procurement at manufacturing sites through thegeneral catalog "TRUSCO Orange Book" and the search site "TRUSCO Orange Book.Com."

End of March 2023

Tokyo Head Office: Trusco Fiorito Bldg.
(Minato-ku, Tokyo)

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

4

Business flow
Manufacturers
Wholesale

3,376 companies

Distributors
Retail 5,589
companies

Users∞ (infinite)

Factory routeConnecting an outlet
Domestic suppliers

to TRUSCO is an easy

3,046 3,046
companies

way to take advantage
of our resources.

Ireland, U.S.A., U.K., 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, Korea, Taiwan, Chinae-business route
The products are delivered tofactories and consumers throughInternet order companies.

Overseas330
32 countries,
32
330
companies

We deliver our products tofactories, construction sites, andother manufacturing sites
through machine tool dealers,
etc.

Merchandise

Manufacturers,
generalconsumers, etc.

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

Sales

Manufacturers,
construction
companies, etc.

DigitalOverseas route
We deliver our products to
manufacturing sites around theworld.

Businesses
conducting
outdoor work,
generalconsumers, etc.

Overseas
manufacturers,
etc.

End of March 2023
Copyright 2023 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 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Accounting highlights
Performance in the first quarter of the 61st business year
[Actual results]
Net sales: 65,983 million yen (YoY change +7.9%), Gross profit margin: 20.1% (YoY change -1.0 pt)
Selling, general and administrative expenses (SGA): 9,319 million yen (YoY change: -0.8%), Operating income:
3,915 million yen (YoY change: +12.3%)
Quarterly profit attributable to owners of parent: 2,675 million yen (+5.6%)
・ Despite difficult conditions, including a downturn in demand due to the slowdown in overseas economies,
our logistics and digital systems and various initiatives led to an increase in sales.
・ Although the gross profit margin saw a YoY change of -1.0 pt due to the time lag in higher purchase prices
pass-through to selling prices, etc., selling, general and administrative (SGA) expenses decreased, resulting in
an increase in income.

Outlook for the full 61st business year
[Budget]Net sales: 265,090 million yen (YoY change +7.6%), Gross profit margin: 20.9% (YoY change -0.3 pt)
Selling, general and administrative expenses (SGA): 39,650 million yen (YoY change: +5.8%), Operating income:
15,700 million yen (YoY change: +7.0%)
Profit attributable to owners of parent: 10,920 million yen (+2.8%)
・ Although we must remain cautious due to the slowdown in overseas economies, we aim to increase sales byimproving convenience through the use of our large inventory held at 28 logistics centers nationwide, stateof-the-art logistics equipment, and product data.
7
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Business performanceFYE December 31, 2022
Full YearFYE December 31, 2023

Actual results

Actual results

Share65,983 million
yen－Gross profit

52,160 million
21.2% 13,234 million yen
yen

Selling, general andadministrative
expenses (SGA)

37,493 million
15.2%
yen

Net sales

246,453 million
yen

Share

-

FYE December 31, 2023
Full year budget

First QuarterYoY change

ChangefrombudgetBudgetYear-onyearchange

+7.9%

+0.1%

265,090 million
yen

+7.6%

20.1%

+2.7%

-3.1% 55,350 million yen+6.1%

9,319 million yen

14.1%

-0.8%

-4.1% 39,650 million yen

+5.8%

-0.6%

6,397 million yen-4.1%(depreciation
included in SGA)

6,667 million yen

2.7%

1,545 million yen

2.3%

-7.3%

Operating income

14,667 million
yen

6.0%

3,915 million yen

5.9%+12.3%-0.6% 15,700 million yen+7.0%

Ordinary income

15,065 million
yen

6.1%

3,972 million yen

6.0%

+8.2%

-0.2% 15,970 million yen+6.0%

Current (quarterly)
profit attributable toowners of parent

10,626 million
yen

4.3%

2,675 million yen

4.1%

+5.6%

-1.6% 10,920 million yen+2.8%

Current (quarterly)
net income per share161.15 yen－

40.58 yen

Dividend per share

40.00 yen

－

－

－

－

45,876 million
18.6% 12,122 million yen
yen

18.4%
－

PB salesCapital expenditures

4,799 million yen－

3,795 million yen-0.65 yen

165.60 yen

+4.45
yen

－

41.50 yen

+1.50
yen

+5.8%

-2.9% 50,000 million yen

+9.0%

－

－ 13,697 million yen－－ +2.14 yen

Points・ Net sales
YoY change +7.9% Change frombudget +0.1%
Increase in sales due to logistics,
digital structure and various efforts
・ Gross profit margin
YoY change -1.0pt
Impact of time lag in higher purchaseprice pass-through to selling prices,etc.
・ Selling, general and administrative
expenses (SGA)YoY change -0.8% Change frombudget -4.1%(Increase) Freight and packing costs,
utilities, etc.
(Decrease) Depreciation, etc.
・ Quarterly profit attributable toowners of parent
YoY change +5.6% Change frombudget -1.6%

8
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Monthly sales
In March, single-month net sales reached a record high of 25,485 million yen
and sales per day amounted to 1,158 million yen.
25,48526,00022,99924,00021,59722,00020,00021,004

21,815
20,532

23,153 23,295 23,284

22,311
20,772

18,89918,000+11.5
14,000+8.5+7.7

16,000

+11.0

+6.1

+8.4

+7.8

+7.0

+9.2

+4.8

+5.3

+4.3

12,00010,000
8,000

6,000
4,000

Sales per month (million yen)

2,000

・ Orders are constantly placed for
consumables used in factories. As such,
we place focus on the sales per day.
Our sales increase during the peak
periods of March when many companies
close their accounts.

0
January

February

MarchJanuary

February

March

April

April

May

May

June

June

July

July

AugustAugustSeptember

September

October

OctoberNovemberNovember

December

December

Total

Number of businessdays (days)

19

19

22

20

20

22

20

22

20

21

20

21

246

Year-on-yearchange (days)

+1

+1

±0

±0

+1

±0

±0

±0

±0

+1

±0

-1

+3

Sales per day(million yen)

995

1,137

1,158

-

Year-on-yearchange (%)

-1.2

+ 5.6

+ 7.7

-

* Since April 1, 2022, we have changed our holidays
according to the calendar, so the number ofbusiness days has increased compared to theprevious year.

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

9

[Consolidated] Monthly sales by sales routee-business route
5,462
5,078
4,814

* Since April 1, 2022, we have changed our holidays according to the calendar, so the number

4,538

of business January
days hasincreasedcompared
toJunethe previous
year.
February
March
April
May
July
AugustSeptember

OctoberNovember

December

Total

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

5,080
4,871

4,600

4,436

4,241

4,940

4,757

4,723

+19.2
Net sales (million yen)
Year-on-year change (%)
+14.4

+10.3
+14.3

+13.1

Factory route

+10.9

+11.3

+11.3

17,688+8.0+5.8

15,835

15,834

16,13816,057

14,437

February

March

April

May

June

July

AugustSeptember

OctoberNovember

DecemberHome center route

14,02013,794January

15,422

14,942

14,784

+12.8

+9.0

12,795

2,043
1,872

1,844

1,829

2,146

2,103

2,112

1,928

1,917

1,920

1,891

1,701

+ 9.3

+ 9.3

+ 7.8

+ 4.9

+ 7.1

+ 7.1

+ 6.0

+ 7.3

+ 5.3

+ 8.5

Net sales (million yen)
Year-on-year change (%)+ 5.4+ 18.1+ 0.7

Net sales (million yen)

+ 13.5+ 5.9+ 17.5+ 14.7Year-on-year change (%)+ 15.3
+ 5.7

△ 6.0

△ 5.2
January

February

March

April

May

June

July

AugustSeptember

OctoberNovember

DecemberJanuary

February

March

April

May

June

July

August

△ 5.7

+ 0.6

△ 1.4

September

OctoberNovember

December

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

10

03
Sales
Performance[Consolidated] Business performance bysales route・Factory route・e-business route
・Home center route・Business performance of subsidiaries[Non-consolidated] Changes in sales by
category of goods[Non-consolidated] Sales by category of
goods[Non-consolidated] Sales of private brand(PB) goods
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

11

[Consolidated] Business performance by sales route
Factory route: Share 68.6% (YoY change +5.0%) e-business route: Share 22.0% (YoY change +14.4%)
Home center route: Share 8.6% (YoY change +16.2%) Overseas route: Share 0.8% (YoY change +13.1%)
FYE December 31, 2022

Full YearFYE December 31, 2023

Gross
profitmarginNet sales

Net sales

Gross profit margin

Share

Actualresults

Actual results

Share

YoY
change170,606 million
yen

69.2%

21.2%

45,268 million
yen

68.6%

+5.0%

e-business
route

51,576 million yen

20.9%

22.1% 14,518 million yen

Home center
route

22,162 million yen

9.0%

17.4%

5,643 million yen

Overseas route2,108 million yen

0.9%

35.8%

552 million yen

246,453 million
yen

100%

21.2%

Sales route

Factory route

Total

Actual results

FYE December 31, 2023
Full Year Budget

First Quarter

ChangefrombudgetNet sales
Year-onyearchangeActualresults

YoYchange

-1.7%

20.4%

-0.4pt182,555 million
yen

22.0% +14.4%

+4.1%

20.1%

-2.4pt56,967 million+10.5%yen

8.6% +16.2%

+5.5%

16.0%

-1.8pt 23,014 million yen

0.8%+13.1%

-2.2%

34.5%

-1.8pt2,551 million yen +21.0%

65,983 million
100.0%
yen

+7.9%

+0.1%

20.1%

-1.0pt265,090 million
yen

Budget

+7.0%

+3.8%

+7.6%

12
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Business performance by sales route: (Factory route)
This route delivers our products to factories, construction sites, and othermanufacturing sites through machine tool dealers, etc. While business conditions in
the manufacturing sector have not returned to their pre-pandemic levels, the holdingof abundant inventories and the implementation of various initiatives resulted in a
YoY change in net sales of +5.0%.
FYE December 31, 2022
Full YearGross
profitmarginNet salesFYE December 31, 2023

Points・ By maintaining an abundant inventory, we are able
to provide our customers with immediate 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.

First Quarter・ We carried out business activities that also help toreduce our environmental impact, such as
strengthening efforts in "MRO Stocker," whichenables product procurement at the factory at any
time, and strengthening efforts in our "Naojiro"
repair workshop.

Gross profit
marginNet sales

Sales route
Actual results

Share

Actualresults

Actual results

Share

YoY
changeActualresults

YoYchangeMachine tool dealers

86,908 million
yen

50.9%

21.9%

22,644 million yen

50.0%

+3.6%

20.8%

-0.3ptDealers in welding materials

24,206 million
yen

14.2%

20.2%

6,389 million yen

14.1%

+6.9%

19.8%

-0.5ptOther manufacturing related(Physical chemical, conductor,
packaging material dealers, etc.)

27,942 million
yen

16.4%

19.9%

7,571 million yen

16.7%

+5.0%

19.3%

-0.8%

Construction related

31,548 million
yen

18.5%

21.1%

8,663 million yen

19.2%

+7.3%

20.4%

-0.7pt2022 First quarter F route net sales (million yen)( ) YoY change

2023 First quarter F route net sales (million yen)

10,614(+5.7%)

8,213(+6.6%)

10,046

6,200

Factory route total

170,606 million
100.0%
yen

7,701

21.2%

45,268 million yen 100.0%

+5.0%

20.4%

-0.4pt(+2.7%)

4,790(+6.0%)
4,518

4,230

4,877

6,037

(+5.9%)
4,670

3,994

4,618

(+4.4%)

1,723(+4.0%)

4,441(+0.9%)
1,708

Hokkaido
Kita-Kanto
Tokyo
and Tohoku and Shinshu Metropolitan

Hokuriku

Tokai

Kinki

Chugokuand Shikoku

KyushuCopyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

13

[Consolidated] Business performance by sales route: (e-business route)
This route delivers our products to factories and consumers through Internet ordercompanies.
Product data and system linkage, as well as logistics processing tailored to customer
needs, have improved convenience, resulting in a YoY change in net sales of 14.4%.
PointsFYE December 31, 2022

Full YearNet salesGrossprofitmarginSales route
Share

Actualresults

40,148 million
yen

77.8%

20.9%

11,428 million yen

22.2%

Actual results
Mail order companies
Companies participating in
Orange Commerce (TRUSCO’s
electronic central purchasingsystem), MRO Stocker

e-business route total

51,576 million
100.0%
yen

MonotaRO, Misumi, etc.

First Quarter
Gross profit
marginNet sales
YoYchangeActualresults

YoYchange10,971 million
yen

75.6% +12.2%

18.8%-2.7pt

26.3% 3,547 million yen

24.4% +21.6%

24.4%-1.6pt

14,518 million
100.0% +14.4%
yen

20.1%

-2.4pt22.1%

Sales to mail order companies:
Sales ratio by industry
MRO mail ordercompanies
41.6%

FYE December 31, 2023

Comprehensive
mail ordercompanies
19.1%
Amazon, etc.

Actual results

Share

By developing a product database withapproximately 3.31 million items, strengthening
system integration, and offering logistics
services that fulfill the demands of mail ordercompanies and companies participating in
Orange Commerce, we have improved
convenience and significantly increased thenumber of orders made to our company.

Data usage

Machine tool dealers
5.0%

Data

Dealers of physical chemical
and medical devices
2.7%

Mail order
Stationery
mail order companies ofhome electricalcompanies appliances
11.9%
9.5%

Askul, etc.
Other mail order companies
4.7%

Product adoption andperformance information

Tubing dealers
1.0%

Data expansion

Data linking

e-commerce

Data linkage with
suppliers and customers

Other
2.4%

14

Hardware retailers
2.1%

Copyright 2023 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 arestrengthening their e-commerce businesses, we aggressively proposed services utilizing our inventory of
approximately 570,000 items and logistics capabilities, resulting in a YoY change in net sales of 16.2%.
FYE December 31, 2022
Year

Net sales
Actual results

Home center routeFull

FYE December 31, 2023

PointsGross profit
Net salesmarginActualYoY
Actual results
resultschange22,162 million
yenFirst Quarter

17.4%

5,643 millionyen+16.2%

Gross profit margin
Actualresults

16.0%

YoYchange-1.8ptChange in sales earned via home center route (Unit: million yen)
Budget23,014
22,162

16,992

18,366

14,702

5,643

2019

2020

2021

2022

We consolidated commercial
distribution channels and acquired a
new right to supply products throughcollaborative efforts between ourstores and EC site. In addition, we also
saw an increase in sales at pro-tool
shops, which are dealers that target
professional craftspeople and factory
workers who have a high affinity withour company.
・ Utilizing the approximately 3.31
million items we have for sale andapproximately 570,000 items we havein stock for instant delivery, we expect
to continue expanding sales byenhancing the product lineup in ourstores and EC site.

15

2023

Copyright 2023 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)

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITEDFYE December 31, 2023

FYE December 31, 2023

AmountFirst Quarter

Rate

Full year budget

YoY change

Year-on-yearchangeFirst Quarter

AmountRate

YoY change－+17.8%

TRUSCO NAKAYAMA CORPORATION (INDONESIA) LIMITED

Full year budget
Year-on-yearchangeFYE December 31, 2023

First Quarter

Full year
budgetYoY change

Year-on-yearchange－+9.3%+33.9%

AmountRate+13.3%

121 million yen

Net sales

65,829 million yen

－

+7.9%

+7.4%

228 million yen

Gross profit

13,134 million yen

20.0%

+2.7%

+6.1%

60 million yen

26.6%+27.0%+19.9%

40 million yen

33.2%+25.1%+31.6%

Selling, general andadministrative
expenses (SGA)

9,242 million yen

14.0%

-0.9%

+5.7%

39 million yen

17.4%

+5.9%

+6.3%

38 million yen

31.4%+11.6%+20.1%

Depreciation includedin SGA

1,526 million yen

2.3%

-7.5%

-4.2%

5 million yen

2.5%

-0.4%

+1.5%

13 million yen

10.8%

+4.1%

+18.1%

Operating income

3,891 million yen

5.9%+12.3%+7.2%

20 million yen

9.2%+104.4%+79.7%

2 million yen

1.8%

－

－

Ordinary income

3,947 million yen

6.0%

+7.9%

+5.8%

21 million yen

9.6%+106.5%+70.9%

1 million yen

1.2%

－

+60.2%

Quarterly net income

2,655 million yen

4.0%

+5.3%

+2.5%

21 million yen

9.6%+106.5%+70.9%

1 million yen

1.2%

－

+60.2%

Business performance inother overseas regions(Philippines, China, South
Korea, etc.)

Points

Net sales(million yen)

Gross profit

Actual results

199 million yen

48 million yen

Rate

ー

Year-on-yearchange

+7.9%

24.3%
+2.7%

・ By enhancing the development of personal suppliers for local top brands inThailand, and by reviewing inventory items in Indonesia, we have shortened thedelivery lead time and expanded the sales area through transactions with newcustomers 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.

16
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Non-consolidated] Changes in sales by category of goods
Sales of environmental safety equipment and chemical products, which are our strengths, increased. On theother hand, there was a lull in demand for fall arrest equipment following last year's revision of the Industrial
Safety and Health Act and novel-coronavirus-related products.

+300(Unit: million yen)
+253
+250
+221
+200

Safetyshoes(JPSA）+162

Adhesives

Impactwrenches

+153

+150

Drill
screwdriver

Duct tapePowergenerators+21.4％+30.9％+101

Sealing
goods

+100

Evacuation
supplies

Garbagebins

Lighting
equipment

Metal
Anchors+39.9％+35.2％

Chips
+50

Poly
bags

+125

+69.5％+45.6%Rags+50

Masking
tape

+62

+60

+53.1％+13.2％

+54

+47

+42

+41

+37

+36

+49.3％+41.1％+18.8％+23.1%+34+26.6％+42.8％+14.3％+0+0-32.7％-62.9％-8.4%-17.9%-17.3％-51.3％△50△100-56.0％

Harness-type
personal fallarrest systems-64.8%△31

Harnesslanyards△55

Single-lenseyeprotection

Meshpalettes

△85

△150

△195

△20

-34.0％-49.8%-26.5％

△19

△16

△16

-16.8％-40.5%

△16

△15

△53

★General- ★ Splashpurpose
guard panels
face masks

△200

△31

△28

-27.2%

Work
benches★Sterilization
Accessories
and hygiene★ Respiratory for fall arrest
goods
systems
protective
equipment with
Waist beltelectric fantype personal
fall arrest
systems★Splashprevention
partitions

Alcoholcheckers★Handsanitizers★: COVID-19 related products
△250
-330

17
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

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

Medium category

YoY change

Grossprofitmargin11.8㉕ Protective equipment

6,002

9.1

-

21.2

20.9

㉖ Safety goods

2,644

4.0

-

24.9

478

0.7

-

18.2

880

1.3

-

13.1

634

1.0

-

18.2

-

16.1

1.6

-

1.5

-

4,962

7.5

14.7

㉗

③ Measurement equipment

2,612

4.0

-

14.2

㉘ Air conditioning goods④ Mechatronics

1,013

1.5

-

14.3

㉙

600

0.9

-

23.7

Environment improvement
goods

Disaster and crime prevention
goods㉚ Closets and exterior goods

17.0

+3.0

20.9

536

0.8

Distribution and storage equipment
total

7,296

11.1

20.2

㉛ Loading goods

2,028

3.1

-

17.1

7. Distribution and9.7
storage equipment

-

Share

11,175

1,019

+7.0

TRUSCO's sales

Environmental safety equipment
total

16.3

6. Environmental safety
equipment

Medium category

1,064⑥ Electronic machinery

735

1.1

Construction goods total

7,881

12.0

⑦ Hydraulic tools

540

0.8

-

11.4

㉜ Conveyors

288

0.4

-

15.7

⑧ Pumps

971

1.5

-

14.7

㉝ Transportation goods

2,786

4.2

-

21.4

⑨ Welding equipment

686

1.0

-

15.8

㉞ Containers and vessels

1,057

1.6

-

28.5

⑩ Painting and interior goods

640

1.0

-

24.3

㉟ Steel shelves

1,136

1.7

-

26.1

Research management equipment
total

+11.0

+3.6

21.8

Civil engineering and building
⑪
goods

692

1.1

-

8. Research management
13.4
equipment

2,826

4.3

⑫ Ladders and stepladders

916

1.4

-

21.7

㊱ Tool wagons

253

0.4

-

1,273

1.9

-

21.7

㊲ Storage and management goods

369

0.6

-

29.1

2,160

3.3

-

25.6

㊳ Work benches

471

0.7

-

32.2

12,18318.5

21.0㊴ Stainless goods

541

0.8

-

18.1

-

Work supply total⑮ Cutting goods+11.4

Research and development㊵
related goods
Office and housing facility
equipment total

371

0.6

-

22.0

⑯ Grinding and polishing goods

1,878

2.9

-

23.1

⑰ Chemical products

6,400

9.7

-

19.9

㊶ Cleaning utensils

9. Office and housing
facility equipment

+7.6

1,189

1.8

5,916

9.0

1,710

2.6

-

22.8
29.8

17.7
+3.1

21.8
19.6

⑱ Factory miscellaneous goods

1,155

1.8

-

15.4

㊷ Stationery

718

1.1

-

19.3

⑲ Packing and binding goods

1,568

2.4

-

28.7

㊸ Office miscellaneous goods

805

1.2

-

26.2

810

1.2

-

17.3

㊹ Electric appliances

946

1.4

-

22.5

595

0.9

-

22.2

1,072

1.6

-

22.9

-

⑳ Casters

5. Hand tool

Category of goods (large
category)① Cutting tools
Drilling and thread cutting
tools
Production processing goods
total

+10.6

Gross
profitmargin3.2

Piping and materials of⑬
electronic equipment
Component, hardware, and⑭building materials
4. Work supply

YoY change

2,084⑤ Tools for machine tools

3. Construction goods

Share

Cutting tools total②

2. Production processing
goods

TRUSCO's sales

Hand tool total

11,22717.0

18.0㊺ OA business machinery

㉑

3,282

4.9

-

13.8

㊻ Office furniture

1,745

2.7

-

17.3

㊼ Interior goods

67

0.1

㉓ Tools for manual work

5,644

8.6

-

19.7 10. Others㊽ Entire company

275

0.4

+62.8

14.3

555

0.8

-

28.5

Total

65,829

100.0

+7.9

20.0

Electric power tools andaccessories
Pneumatic tools and㉒
accessories㉔ Tool boxes+11.8

Points・ Construction goods:
YoY change +11.0％
Sales increased in many
commercial products suchas construction hardware
and anchors.

・ Work supplies:
YoY change +11.4％
Sales of adhesives andsealants in particularincreased.
・ Hand tools
YoY change +11.8％
Sales of tools for manual
work and power tools
increased.

20.2

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

18

[Non-consolidated] Sales of private brand(PB) goods▮ Share of sales of private brand products
As of end of March 2023
Cutting tools 1.6%
Officeand housing facility
equipment
10.2%

We will continue our efforts to revamp our coreproducts so that our private brand TRUSCO products
will further contribute to manufacturing and become astaple on the site.

Research
management
equipment
8.3%

Production processing
goods
3.6%

Construction
goods
9.2%

Work supplies
17.6%
Distribution andstorage equipment
25.6%

Sales by sales route and category of goods

Hand tools
9.9%(Unit: million yen)
Entire company
Share
Gross profit
marginNet sales
Total

Factory

18.4%

Share

34.7%

Gross profit
marginYoY change

Net salese-business

18.8%

Share

36.1%

Gross profit
marginYoY change

Net sales

Home center

22.5%

Share

4.5%

31.8%

Gross profit
margin26.8%

YoY change

Net sales

Environmental safety
equipment
13.9%

12,122

5.8%

8,529

1.7%

3,261

18.8%

254

0.7%

Cutting tools

189

5.0%

136

1.6%

31

19.3%

18

13.1%

Production processing
goods

431

5.5%

307

1.9%

112

16.9%

4

-8.5%

Construction goods

1,120

8.5%

772

3.7%

324

21.6%

15

1.7%

Work supplies

2,136

9.5%

1,636

6.2%

460

23.0%

21

20.4%

Hand tools

1,203

7.3%

842

3.4%

313

20.4%

29

-4.9%

Environmental safety
equipment

1,691

0.3%

1,217

-3.2%

430

8.4%

38

38.1%

Distribution andstorage equipment

3,105

5.5%

2,125

2.0%

852

18.6%

118

-7.7%

Research management
equipment

1,006

6.8%

675

-1.9%

321

30.7%

1

19.9%

Office and housing
facility equipment
Other

1,236
0

4.0%
-90.4%

814
-

-0.1%
-

414
-

15.3%
-

▮ Private brand product sales trends

YoY change

50-32.6%-90.4%(Unit: million yen) () YoY change
Full year budget
50,000 million yen

43,890(+0.7%)

41,302(-5.9％)

43,44545,876(+5.6％)(+5.2%)

12,122 (+5.8％)

Share
Gross
profitmargin

2019

2020

2021

2022

2023

19.9%

19.4%

19.0%

18.7%

18.4%

35.8%

36.4%

36.2%

35.8%

34.7%

1st Quarter

19
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

04

Financial and
Other
Performances[Consolidated] Selling, general andadministrative expenses (SGA)[Consolidated] Details of selling, general andadministrative expenses (SGA)[Consolidated] Financial statements andfinancial indicators[Consolidated] Capital expenditures

Major capital expenditures for the current
fiscal year
20
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Selling, general and administrative expenses (SGA)
Although freight and packing costs increased due to increased shipping volume, and utilities costs increased due tohigher electricity rates, etc., selling, general and administrative expenses saw a -0.8% YoY change due to a decreasein depreciation and other expenses.
(Unit: million yen)
Salary andFreight andUtilities
Depreciation( ) YoY change
bonus
packing
expenses-122
Otherexpenses+56
FYE December
31, 2022
First Quarter

+112

+58

-181

9,395

～

Selling, general and administrative expenses 9,319 million yen, 76 million yen
・ Freight and packing expenses: +112 million yen, due to increase in shipping volume
and transportation costs* Freight expenses associated with the User Direct Shipment Service are paid by customers.

・ Utility expenses: +58 million yen, due to soaring electricity rates, etc.
・ Salaries and bonuses: +56 million yen, due to an increase in hourly wage for part-time
employees and an increase in the number of months for which logistics course bonuses
are paid・ Depreciation: -122 million yen, due to expiration of amortization period of software
・ Other: -181 million yen, due to effect of deduction of SGA expenses for catalog andweb posting fees
* The difference as of the end of the quarter for FYE December 31, 2022 is due to the lump-sum
recording in the fourth quarter.

FYE December
31, 2023
First Quarter

9,319

～
(-0.8%)

21
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

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

No.

Actual results

FYE December 31, 2023

Share in net
sales

Share in net
sales

Actual results

First Quarter

Change from thesame period of theprevious year

FY 2023 Full Year
BudgetFull year budget
and YoY change
in performance

YoY change

13,036

5.3

2,481

3.8

+56

+2.3

13,355+2.5

2 Freight and packing expenses

7,630

3.1

1,952

3.0

+112

+6.1

8,579

+12.4

3 Depreciation

6,667

2.7

1,545

2.3

-122

-7.3

6,397

-4.1

8

0.0

706

1.1

+39

+5.8

521

+6,226.1

5 Commission fee

2,638

1.1

653

1.0

+30

+4.9

2,674

+1.4

6 Welfare expenses

2,343

1.0

597

0.9

+57

+10.6

2,491

+6.3

7 Taxes and dues

1,416

0.6

324

0.5

-76

-19.2

1,367

-3.5

8 Advertising expenses

505

0.2

176

0.3

+23

+15.6

535

+6.0

9 Utilities expenses

537

0.2

164

0.2

+58

+56.0

570

+6.0

10 Promotion expenses

316

0.1

142

0.2

-99

-41.2

286

-9.6

Traveling expenses and transportation
11
expenses

543

0.2

126

0.2

+3

+2.5

561

+3.3

12 Supplies expenses

434

0.2

123

0.2

+27

+28.7

491

+13.1

13 Communication expenses

434

0.2

102

0.2

-5

-5.5

445

+2.3

14 Leasehold and office rents

357

0.1

88

0.1

-0

- 1.1

360

+0.7

15 Remuneration paid to directors

401

0.2

74

0.1

+4

+6.1

433

+7.8

16 Vehicle expenses

283

0.1

69

0.1

+0

+0.9

268

-5.3

42

0.0

8

0.0

+1

+24.9

113

+167.7

-104

- 0.0

-20

- 0.0

-185

-

198

-

37,493

15.2

9,319

14.1

-76

- 0.8

39,650+5.8

1 Salary and bonus

4 Provision for bonuses

17 Entertainment expenses
18 Other

Total

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

22

[Consolidated] Financial statements and financial indicators
Statement of cash flows

Balance Sheet(Unit: million yen)
As of March 31, 2023

(Unit: Million yen)
Q1 of FY 2022

Item

AmountItem(Assets)
Current assets
Cash and deposits
Accounts receivable

Electronically recorded monetary claims operating
Merchandise
Other
Allowance for doubtful accounts(Liabilities)
121,189 Current liabilities
38,58933,775

Accounts payable - trade
Short-term borrowings

22,316
10,000

4,390

-586

Cash flows from investing activities-1,928-3,870-1,942

Cash flows from financing activities-1,020-1,546

-525

35

27

-8

2,363

Net increase (decrease) in cash and cash equivalents

2,064

-998

-3,063

732

Income taxes payable

1,358

Cash and cash equivalents at beginning of period

41,44939,400-2,049-1

Provision for bonuses

713
Cash and cash equivalents at end of period

43,51438,402-5,112

99,926

Buildings (net amount)

47,583

Other

7,098 Non-current liabilities
1,384Long-term borrowings

Land

38,610

Provision for retirement benefits for
directors (and other officers)

Construction in progress

3,234Long-term guarantee deposits
Other

Other (net amount)

2,014

Intangible assets

4,261 Total liabilities

Software3,468 (Net assets)

33
78
1,926

151

Equity ratio

Q1 of FY 2023
67.1%

Change (pt)
66.5%

-0.6

2,783
93

76,819792 Shareholders' equity

151,876

Capital stock

5,022

Investment securities

3,196

Capital surplus

4,711

Deferred tax assets

128

Retained earnings

Deferred tax assets for land revaluation

155

Treasury shares

Other

321 Accumulated other comprehensive income
Valuation difference on available-for-sale-10
securities
Foreign currency translation adjustment

End of FY 2022

25,0003,791

Revaluation reserve for land

Equity ratio

28,029Investments and other assets

Total assets

4,977

10,000Property, plant and equipment

Allowance for doubtful accounts

Cash flows from operating activities

Accounts payable - other

1,542
46,551

Provision for bonuses for directors (andother officers)
Allowance for loss on soil contamination
treatment

Other

48,789Effect of exchange rate change on cash and cash
equivalents

107,979

Tools, furniture and fixtures (net amount)

ChangeLong-term borrowings scheduled to be
repaid within one year

Non-current assets

Machinery and equipment (net amount)Q1 of FY 2023

Amount142,222

Other financial indicators
End of FY 2021

End of FY 2022

Change (pt)

ROA (Return on Assets)

6.3%

6.7%

+0.4ptROE (Return on Equity)

8.4%

7.2%

-1.2pt

-79
472
520
-353
305

Total net assets

152,349

229,168 Liabilities / Total net assets

229,168<Our Approach to ROE>
We believe it is important to expand profits and ensure long-term, stable increase bymaking 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.
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

23

[Consolidated] Capital expenditures(Unit: million yen)

Major capital expenditures and planned capital expenditures

Actual investment in Planned investment in
Q1 FY 2023
Q2-4 FY 2023

Details of major capital expenditures in 2023
Planet Aichi material handling facility (planned amount for current fiscal year: approx. 2,300 million yen)
Planet Higashi Kanto: 2nd automated pallet warehouse, conveyor (planned amount for current fiscal year: approx. 600

Facilities million yen)

570

3,486

Sakai Stock Center: Automated pallet warehouse (planned for current fiscal year: approx. 500 million yen), etc.
Construction of product database "Sterra 2.0" (planned amount for current fiscal year: approx. 800 million yen)

395

2,469

Land and Honmachi Central Building: Renovation (planned amount for current fiscal year: approx. 800 million yen)buildings Planet Aichi new construction project (planned amount for current fiscal year: approx. 5,400 million yen), etc.

2,829

3,948

Subtotal

3,795

9,902

Systems

Enhancement of core system "Paradaise" / supplier portal "POLARIO" (planned amount for current fiscal year: approx.
300 million yen), etc.

13,697

Annual capital expenditures

19,700 million yen

Expected
expenditures

35
39

Facilities
Systems
Land and buildings

8,000
million yen
123

13,697 million yen
8,700
million yen
7
7

4,700
million yen

73

7
11

59
5
15

2019

2020

4
28

67

28
2021

2022

2023

<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 represent values on a cash-out basis.

24

Plan
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Major capital expenditures for the current fiscal year
Planet Higashi Kanto automatedpallet warehouse

Sakai Stock Center

Planet Aichi

Location: Matsudo, Chiba Prefecture

Location: Sakai, Osaka Prefecture

Location: Kitanagoya, Aichi Prefecture

Operation: March 2023

Operation: April 2023

Completion: November 2024
Operation: July 2026 scheduled

Site area: 14,680.99 sqm (Planet Higashi Kanto)
Total floor area: 29,705.785 sqm(Planet Higashi Kanto)

Site area: 3,302.48 sqm
Total floor area: 4,641.32 sqm

1st automated pallet
warehouse

2nd automated pallet
warehouse

Total investment amount: approx. 2,680 million yen(planned amount for 61st business year: approx. 600
million yen)
By setting up an automated pallet warehouse in the
new area, we will be able to store an additional 4,556
pallets, and strengthen our instant delivery systemthrough enlarging our product range.

Total investment amount: approx. 1,830 million yen(planned amount for 61st business year: approx. 500
million yen)
By setting up an automated pallet warehouse, we will
be able to store 3,304 pallets and strengthen our
instant delivery system through improving ourinventory storage capacity.

Site area: 41,636.36 sqm
Total floor area: 89,864.46 sqm
Total investment amount: approx. 28,800 million yen(planned amount for 61st business year: approx. 7,800
million yen)
We aim to create a highly efficient distribution center bystrengthening our product lineup (1 million SKUs) andproviding the “fastest,” “earliest,” and “best” service.

25
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

05

DigitalVarious key
indicators

Logistics

Merchandise

Sales

Human resources

26
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (digital)
Plan

Key indicators

59th business year

60th business year

61st business year

FYE December 31, 2021

FYE December 31, 2022

FYE December 31, 2023

DigitalRate of automatedquotations
Rate of online
quotation requests

18.2%(+10.1)

22.6%(+4.4)

28.0%(+5.4)

42.7%(+6.0)

46.0%(+3.3)

50.0%(+4.0)

System order rate

85.3%(+1.4)

85.2%(-0.1)

86.0%(+0.8)(

System order rate
Order type
TRUSCO Orange Book.Com
Internet ordering (for distributors andusers)

TRUSCO EDI
Data linkage with distributor orderingsystemOrange Commerce
Linkage with users' purchasing system

EOS
Home center electronic ordering system

Total) Year-on-year change

Rate of automatedquotations

25.4%
Rate of online quotation
requests

45.8%(March 2023)(As of the end of March 2023)
Number of orders(thousand)

Share

Change inshare fromthe previous
fiscal year(pt)

Order price(million yen)Price share

Change in priceshare from theprevious fiscal
year (pt)

3,839

38.9%

-0.4

28,041

42.6%

-0.2

2,184

22.2%

+1.0

8,868

13.5%

-0.1

258

2.7%

+0.4

1,985

3.0%

+0.3

2,162

21.9%

-0.1

5,103

7.8%

+0.3

8,445

85.7%

+0.9

43,999

66.8%

+0.3

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

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

Quotation
response

Receive a quotation
response in seconds.

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

27

Key indicators (goods)

Plan

Key indicators
No. of items featured on TRUSCO
Orange Book.Com (Free site)

59th business year

60th business year

61st business year

FYE December 31, 2021

FYE December 31, 2022

FYE December 31, 2023

2,760,887 Items

31,671,881 Items

4,200,000 Items(+423,667)(+406,301)(+1,032,812)

2,966 companies(+314)

3,272 companies(+306)

3,470 companies(+198)Of these, number of overseas
suppliers

304 companies(+92)

329 companies(+25)

350 companies(+21)

Number of
manufacturers listed

1,948 companies(+97)

2,152 companies(+204)

2,320 companies(+168)

Total number of suppliers

Merchandise

TRUSCO
OrangeBook

Number of item listings

Number of items listed in the
TRUSCO Digital Orange Book

508,000 Items−(+37,000)−

374,000 Items
374,000(-134,000)−

374,000 Items
444,000(±0)(+70,000)(+57,528)

562,026 Items(+62,062)

595,000 Items(+32,974)

Of these, number of goods
automatically adopted: (SKU)

7,494 Items(+4,529)

26,109 Items(+18,615)

41,000 Items(+14,891)

Private brand productdevelopment, number of brush-ups

−

1,000

(+1,000)(+4,409,969) 56,000,000(+2,802,417)

Total number in stock

48,787,614−−(+2,832,108) 53,197,583

−

3,500

3,272
2,966

3,000

499,964 Items

Number of items in inventory[Non-consolidated] Change insales of newly listed goods on
TRUSCO Orange Book.Com incompany-wide sales

2,652
2,477

42,292 million yen−

45,292 million yen(+3,000)

46,400 million yen

2,458
88

2,500

2,000

1,950

2,142
102

96

2,040

2,204
84
2,120

2,132
84

2,370

2,047

1,854
1,500

1,000

Sales of newly listed goods(100 million yen)
Sales of previously listed goods(100 million yen)
Number of suppliers

500

Inventory amount

2,537(+1,108)0() Year-on-year change

2018

2019

2020

2021

2022

28
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (sales)Plan

Key indicators

59th business year

60th business year

61st business year

FYE December 31, 2021

FYE December 31, 2022

FYE December 31, 2023

5,527 companies

Number of corporate clients

Sales

29,561 AccountNumber of client accounts
No. of companies connectedto Orange Commerce
No. of MRO Stocker
adoptions
Number of sales(+12)

5,575 companies(+2,011)31,614 Account(+675)

2,233 companies

2,042 companies(+2,053)(+886)(+191)

2,600 companies(+367)(+282)

775(+446)

1,000(+225)

210,032,705−

225,781,587(+15,748,882)

242,000,000(+16,218,413)

Number of companies

Amount irrecoverable(10,000 yen)
2019

0

2020

0

2021

275

2022

0

Q1 of FY 2023

0

) Year-on-year change

No. of companies
adopting MRO
StockerNumber of accounts

2016

32,500 Account

(+55)

329

[Consolidated] Change in number ofsales accounts and companies

2015

5,630 companies

(+48)

(

2014

Amount irrecoverable due
to bankruptcy

Cumulative total introductions: 836 (as of the end of
March 2023)
Projected introductions: 330
Sales target per introduction 300,000 yen/month- Merits -

2017

2018

2019

2020

2021

2022

2023

Consolidated

Consolidated

Consolidated

Consolidated

1Q
Consolidated

Management
cost

0 yen

Delivery0 min.

Waste

0

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

29

Key indicators (logistics)
Key indicators

Plan

Changes of the User Direct
Shipment Service

59th business year

60th business year

61st business year

FYE December 31, 2021

FYE December 31, 2022

FYE December 31, 2023

No. of direct shipments tousers

2,836,392(+603,997)

3,556,388(+719,996)

4,400,000(+843,612)

No. of direct shipments tousers

3,396,286(+677,072)

4,374,725(+978,439)

5,400,000(+1,025,275)

Logistics

Labor cost perincoming/outgoing shipment

117 yen(-7)

113 yen(-4)

108 yen(-5)

Inventory shipment rate

91.3 %(+0.3)

91.7 %(+0.4)

92.0 %(+0.3)

Number of chartered vehicledeliveries

161

(+1)

162

(+1)

150

(-12)

Number of own company
deliveries

117

(+7)

116

(-1)

124

(+8)

Rate of own company
deliveries

42.1 %(+1.4)

41.7 %(+4.0)

45.7 %(+4.0)

Delivery lead time(Companywide, including primary +secondary provision and beyond,average of morning and afternoon
deliveries)

20 hours 6 minutes
53 seconds

−

−

(

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

Net sales(100
millionyen)*−) Year-on-year change

2019

2020

2021

2022

2023
(Plan)

Share by Delivery Category (by number of shipments)
Distributor visits 0.7%2022
1st Quarter2023
1st Quarter

Delivery to distributors
68.5%

Delivery to distributors
66.5%

User visits0.3%

Route shipments to
To users
Route shipments
distributors
12.0%
18.4%

Route shipments to
To users
Route shipments
distributors
14.2%
18.2%
Distributor visits 0.7%

I-Pack®
[High-speed automated packaging andshipping line]
Shipping capacity: 720 cs/h per line,
approx. 24 workers
I-Pack introduced to: Planet Tohoku,
Planet Saitama(3 lines)
Planet Tokai
Planet Osaka
Total 6 lines- Merits Cut delivery times byhalf
Cut shipping load by
half
Cut workload by half
Cut packaging
materials by half
Cut environmental
impact by half

30

User visits 0.3%

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Key indicators (logistics)

Number of items in inventory
and inventory shipment rate
90.5

91.0

91.3

[Non-consolidated] Changes in inventory
disposal and inventories
91.7

600,000

562,026

91.8
570,461499,964
500,000

442,436

400,000

Inventory disposal(million yen)
Inventories (100million yen)
Disposal rate (%)

2018

2019

2020

2021

2022

39

42

50

55

65

370

427

406

416

441

0.11

0.10

0.12

0.13

0.15

Delivery service and internal transportation
service: Number of units

392,100

Change from theend of previous
fiscal year

No. ofunits

300,000

Total number of deliveries

227

-1

Chartered vehicle delivery service(contracted delivery service)

161

-1

Own company delivery service

116

±0

Internal transportation service

31+1

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

Own company delivery service

5

+1

308

±0

200,000

Number of items in inventory

100,000

Inventory shipment rate (%)

0

2019

2020

2021

2022

2023
Q1

Delivery service and internaldelivery service Total

Delivery service
We are reviewing delivery andinternal transportation services tooptimize the number of units bystreamlining delivery routes andinternal movement of inventory.
We are also increasing thenumber of own company delivery
services (delivery by theCompany's employees) to improvecustomer service. The current own
company delivery rate is 41.9％.
We plan to increase own company
delivery rate to 50% in 2024.

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

31

Key indicators (human resources)

Number of Employees [Consolidated]
As of FYE March 31, 2023 (Unit: persons)Average age and annual income

Female

Male

Total

YoY change

Executives

1

11

12

+2

Executive officers
Career (overseas anddomestic)
Digital career

0

0

0

-1

137

408

545

-12

0

0

0

±0

Logistics career

0

0

0

±0

Carrier (regional)

6

8

14

+12

Specialist

13

14

27

+1

Area

305

296

601

-6

Expert

0

0

0

±0

Logistics area

3

24

27

+25

Logistics

82

243

325

-10

Contract employees

1

37

38

+1

Overseas subsidiaries
Seconded to healthinsurance association
Seconded to Nakayama
Visually Impaired Welfare
Foundation
Employee total

21

23

44

±0

2

0

2

±0

0

1

1

+1

570

1,054

1,624

+11

Part-time employees

974

353

1,327

+31

Total

1,545

1,418

2,963

+44

Share of female employees: 35.1%, Number of female sales staff members:
42, Female employees in career-track positions: 25.6%*The number of part-time employees represents the actual number of such
workers under employment.

Average age (years)

2022

2021

2020

2019

2018

Average annual income (10,000 yen)FemaleMale

Entirecompany

Career

Area

Logistics

Entirecompany

33.0

43.4

39.8

771

633

494

661

32.8

43.2

39.6

724

596

456

615

32.1

41.9

38.4

721

601

461

619

31.3

42.0

38.2

758

642

492

655

30.9

42.1

38.2

804

680

520

701

* 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 were discontinued, and bonuses
decreased.
* Consolidated accounting has been
applied to the fiscal year ended Dec. 2019and later fiscal years. From the fiscal year
ended Dec. 2019 onwards, the average
age figure is on a consolidated basis,
whereas all the average annual income
figures are on a nonconsolidated basis.
*The average annual income for 2022
includes the temporary bonus paid tosupport living expenses due to the soaring
costs of goods.

Numbers of incoming and outgoing employees [Consolidated]
2019
Female Male
585
1,071
1,656
52
57
No. of incoming
employees
10942
44
No. of outgoing
employees
86
6.7
3.9
Turnover ratio
No. ofemployees

(%)

4.9

2020

2021

2022

End of March 2023

Female Male
589
1,085
1,674
41
46
87
37
33
70
5.9
3.0

Female Male
571
1,061
1,632
26
25
51
45
45
90
7.3
4.1

Female Male
577
1,062
1,639
47
51
98
39
44
83
6.3
4.0

Female
Male
570
1,054
1,624
42
47
89
9
8
17
1.6
0.8

4.0

5.2

4.8

1.0

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

32

06

[Consolidated] Quarterly businessperformance and budget (quarterly)[Consolidated] Quarterly businessperformance and budget (cumulative)[Consolidated] Three-year management plan

Management Plan Vision - Capacity targets -33
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Quarterly business performance and budget (quarterly)
FYE December 31, 2023 First Quarter (Quarterly)
1st Quarter (+2 days)
AmountShare (%)

(Unit: million yen)
2nd Quarter (+1 day)YoY change (%)

AmountShare (%)

3rd Quarter (±0 day)YoY change (%)

AmountShare (%)

4th Quarter (±0 day)YoY change (%)

AmountShare (%)

YoY change (%)

Budget65,925

100.0

+7.8

64,535

100.0

+ 8.4

64,898

100.0

+ 7.7

69,732

100.0

+ 6.4

Actualresults

65,983

100.0

+7.9

-

-

-

-

-

-

-

-

-

Budget13,65320.7+6.0

13,378

20.7

+ 7.1

13,480

20.8

+ 8.9

14,839

21.3

+ 3.0

Actualresults

13,234

20.1

+2.7

-

-

-

-

-

-

-

-

-

Budget

9,714

14.7

+3.4

10,209

15.8

+ 1.6

9,717

15.0

+ 5.9

10,01014.4+ 12.8Actualresults

9,319

14.1

-0.8

-

-

-

-

-

-

-

-

-

Budget

3,939

6.0

+12.9

3,169

4.9

+ 29.63,763

5.8+ 17.64,829

6.9- 12.7

Actualresults

3,915

5.9

+12.3

-

-

-

-

-

-

-

-

-

Budget

3,981

6.0

+8.4

3,239

5.0

+ 30.83,818

5.9+ 17.4

4,932

7.1- 12.9Actualresults

3,972

6.0

+8.2

-

-

-

-

-

-

-

-

-

Budget

2,719

4.1

+7.3

2,213

3.4

+ 29.02,611

4.0+ 17.6

3,377

4.8- 18.7

Actualresults

2,675

4.1

+5.6

-

-

-

-

-

-

-

-

-

Net sales

Gross profit

Selling, general andadministrative
expenses (SGA)

Operating income

Ordinary income

Quarterly profit
attributable toowners of parent

34
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Quarterly business performance and budget (cumulative)FYE December 31, 2023 First Quarter [Cumulative]
1st Quarter (+2 days)
AmountShare (%)

(Unit: million yen)

2nd Quarter (+3 days)

YoY change (%)

AmountShare (%)

3rd Quarter (+3 days)

YoY change (%)

AmountShare (%)

Full year (+3 days)

YoY change (%)

AmountShare (%)

YoY change (%)

Budget65,925

100.0

+7.8

130,460

100.0

+8.1

195,358

100.0

+ 8.0

265,090

100.0

+ 7.6

Actualresults

65,983

100.0

+7.9

-

-

-

-

-

-

-

-

-

Budget13,65320.7+6.0

27,031

20.7+6.5

40,511

20.7

+ 7.3

55,350

20.9

+ 6.1

Actualresults

13,234

20.1

+2.7

-

-

-

-

-

-

-

-

-

Budget

9,714

14.7

+3.4

19,92315.3+2.5

29,640

15.2

+ 3.6

39,650

15.0

+ 5.8

Actualresults

9,319

14.1

-0.8

-

-

-

-

-

-

-

-

-

Budget

3,939

6.0

+12.9

7,108

5.4

+19.8

10,871

5.6+ 19.015,7005.9+ 7.0

Actualresults

3,915

5.9

+12.3

-

-

-

-

-

-

-

-

-

Budget

3,981

6.0

+8.4

7,220

5.5

+17.4

11,038

5.7+ 17.4

15,970

6.0+ 6.0

Actualresults

3,972

6.0

+8.2

-

-

-

-

-

-

-

-

-

Budget

2,719

4.1

+7.3

4,932

3.8

+16.0

7,543

3.9

+ 16.6

10,9204.1+ 2.8

Actualresults

2,675

4.1

+5.6

-

-

-

-

-

-

-

-

-

Net sales

Gross profit

Selling, general andadministrative
expenses (SGA)

Operating income

Ordinary income

Quarterly profit
attributable toowners of parent

35
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Three-year management plan
We have formulated a three-year plan to visualize and better secure the results of the planned investments. In
anticipation of the operation of Planet Aichi in 2026, we aim to achieve the goals in this plan by implementing
measures that will lead to improved customer convenience, such as the platform strategy “TRUSCO HACOBUne.”
60th business year
(FYE December 31, 2022)
Actual results(million yen)

Share (%)

61st business year
(FYE December 31, 2023)

Year on year (%)

Plan(million yen)

Share (%)

62nd business year
(FYE December 31, 2024)

Year on year (%)

Plan(million yen)

Share (%)

63rd business year
(FYE December 31, 2025)

Year on year (%)

Plan(million yen)

Share (%)

Year on year (%)

246,453
21.2

100.0
-

+8.6
+0.2

265,090
20.9

100.0
-

+7.6
-0.3

284,000
20.9

100.0
-

+7.1
±0.0

304,200
20.9

100.0
-

+7.1
±0.0

Selling, general andadministrative expenses (SGA)

37,493

15.2+8.1

39,65015.0+5.8

41,50014.6+4.7

43,50014.3+4.8(Depreciation included in SGA)

6,667

2.7

-3.8

6,397

2.4

-4.1

6,115

2.2

-4.4

5,239

1.7

-14.3

Dividend per share

14,667
15,065
10,626161.15 yen
40.00 yen

6.0
6.1
4.3
-

+12.8
15,700+11.1
15,970-8.4
10,920-14.17 yen 165.60 yen+4.50 yen 41.50 yen

5.9
6.0
4.1
-

+7.0
17,800+6.0
18,200+2.8
12,417+4.45 yen 188.11 yen+1.50 yen 47.50 yen

No. of direct shipments tousers

3,556,388-+25.4 4,400,000-+23.7 5,300,000-+20.5 6,300,000

-

+18.9

No. of companies adopting
MRO Stocker

775

-

+446

1,000

-

+225

1,500

-

+500

2,000

-

+500

595,000-+32,974

645,000-+50,000

695,000-+50,000

Net sales
Gross profit margin (%)

Operating income
Ordinary income
Net income
Current net income per share

562,026-+62,062

No. of items featured on
TRUSCO Orange Book.Com(SKU)

3,167,188-+406,301 4,200,000

Major investments andinitiatives• Strengthening efforts in “Assortment” and“User Direct Shipment Service”• Strengthening PR for “MRO Stocker” and“Naojiro”

No. of items in inventory (SKU)- +1,032,812 5,400,000• Linkage with users' purchasing system (MRO
Stocker 2.0)
• Similar product search function

6.3
+13.4
20,1006.4+14.0
20,500
4.4+13.7
13,987- +22.51 yen 211.90 yen- +6.00 yen 53.00 yen- +1,200,000 6,600,000• Greatly enhancing product database (Sterra
2.0)• Improving business efficiency/convenience forcustomers (Orange Book.Com 2.0)

6.6
+12.9
6.7
+12.6
4.6
+12.6
- +23.79 yen- +5.50 yen- +1,200,000• Providing a series of experience-based values
from product selection to arrival (EC Cross)• Advancing warehouse management (GWES)

36
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

“Vision” - Capacity targets We want to be a company that can hold 1 million

01 items in inventory by 2030.

06

We want to be a company that can respond to quotations
instantly.
(Automated estimate response rate as of December 31,
2022: 22.6%)
We want to be a company that can achieve the "fastest,"

07 "shortest," and "best" deliveries in the industry.
We want to be a company with the smallest

08 possible environmental impact.
We want to be a company that can take orders

02 24 hours a day and ship 365 days a year.

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

We want to be a company without product03 shortages, incorrect orders, or incorrect shipments.
04

09 and returnables.

(Repair workshop "Naojiro" FY2022 results: 1,817 millionyen)
We want to be a platform operator that supports

We want to be a company without inventory work.
(Inventory variance ratio at the end of 2022: 0.43%)

10 Japanese manufacturing.

We want to be a company that can ship directly to

11 conventional thought, customs, set theories, and

05 users without stress, even if we are a wholesaler.

We want to be a company that can rewrite theplaybook of the industry.

37
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

07
ESG Information

TRUSCO's "Gentleness for the Future"
Project

Sustainability indicators
Other environmental measures andinitiatives
Relationship with society & corporate
governance38
Copyright 2023 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 environmentfriendly company so that our small efforts will lead to great compassion for the future."
The idea of connecting the global community to the future has been ingrained in thecompany 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 ofpeople and society, including the global environment.
Scan here fordetails"Gentleness for the Future" Basic Policy - TSV
Under the motto, "Business must serve people and society," the Company will create bothsocial value and corporate 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.
39
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Sustainability indicators
CO₂ emissions (as of the end of 2022)
CO₂ emissions from fuel use (Scope 1)_2,327 t-co₂ /CO₂ emissions from electricity use (Scope2) 8,109 t-co₂
CO₂ emissions in the supply chain (Scope 3 *) 1,724,759 t-co₂* Only Scope 3 is for the year 2021.

Reduction in CO2 emissions through various services
Annual reduction in CO2 emissions:
Service

11,365 t-CO (+1,806 t-CO year-on-year)
2

Annual reduction in
CO2 emissions

2

Reduction in CO2 emissions per
shipment/unit/item

Actual result (2022)

1,002t-CO₂

0.28kg-CO₂

3.55 million shipments

Assortment

165t-CO₂

0.22t-CO₂

750,000 shipments

MRO Stocker

3,100t-CO₂

4t-CO₂775

Fixed cost logistics

3,098t-CO₂ーー

Inventory storage

1,300t-CO₂

2.6kg-CO₂

About 500,000 items

Repair workshop "Naojiro"

2,700t-CO₂ーー

U-Choku (direct shipment to users)

40
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Sustainability indicators
Workshop

NaojiroRole of repair workshop "Naojiro"

TRUSCO power generation installations (solar and wind
power) at 19 locations
Annual power generation in 2022 2,653,344kWh
Renewable energy power self-sufficiency 16.4%

It is a service that maintains the safety and precisionessential for pro tools, and aims to reduce the environmental
impact and contribute to cost reduction by allowing familiar
tools and equipment to be used for a long time. In January2022, the Company will relaunch its Naojiro section to
popularize and enhance this service.
8 services of repair workshop "Naojiro"

Environmental measures for TRUSCO’s products
We have established environmental standards in product planning anddevelopment, and are promoting environmentally friendly productdevelopment from all aspects, from product design to product use anddisposal. For existing products, we are also working to improve loading
efficiency and reduce the resources used for containers and packaging.

RepairRegrinding

Calibration

Reuse

Processing

Maintenance

Assembly

Construction
andinstallation

Sales of repair workshop "Naojiro"(Unit: million yen)
Budget2,000

TRUSCO Air Forest For Factory
Product number: AFF250 etc.
This is an air freshener for factories. It
eliminates odor components found only infactories, such as the odor of deteriorated
cutting oil. Formulated with "functional
tree extracts" that are effectively takenfrom thinned wood found in the Sakhalin fir
forests of Hokkaido, this product helps tocreate a "recycling-oriented society" bymaking use of unused thinned wood that isleft behind in the forests.

1,817

1,708
1,549

1,596

543

2019

2020

2021

2022

1Q of FY
2023

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

41

Other environmental measures and initiatives
When it comes to environmental initiatives, it is important to consider "when they started
being implemented.”
Over 20 years ago, the Company began carrying out environmental initiatives based on
the idea of "Gentleness for the Future." The initiatives covered a wide range of areas,from the office building to individual employees, business measures, and productdevelopment.

Facilities

PeopleInstallation of ceiling fans

Air well voids

Fleece jumpers (2002)

Fluorescent lights with motion sensors

Sandwich panels

GORE-TEX jumpers (2002)

W-folded plate roof

Sprinkling well water on the roof
(2007)

Neck warmers, lap blankets (2012)

Use of underground cool air

Installation of solar panels (1998)

Turning air conditioning off 30
minutes before leaving work

Measures

Merchandise

Reducing overtime by inventorying
items

FAX OCR "DOTKUL" (2000)

2 inch paper tube tape

Abolishing receipts for goods (2001)

System orders (2002)

No-gas sprays

Inventory for manufacturers’ catalogs

Abolishing printing of picking lists(2012)

Return cushions
42
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Relationship with society & corporate governance“TRUSCO Unknown Gulliver”, TV programprovided by a single company

Open judge system (OJS = 360 degree
evaluation)

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
Japanese companies.” In each episode, the ways and ideas of a Japanesecompany are presented.

This is our company's unique evaluation system, in which employees areevaluated not only by their superiors, but also by colleagues and subordinates.
The purpose is to give feedback in evaluation comments that will lead tobehavioral 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

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 2003
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 and transparency, 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 ongoingdrought, we are donating to support thePeshawar-kai, which engages in comprehensive
rural reconstruction projects with the idea that“one irrigation canal will do more good than 100
doctors”.

Board of directors meeting(management meeting) inNovember 2022

The late Dr. Tetsu Nakamura with
Afghan workers

43
Copyright 2023 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

44
Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

Stock information
Shareholder Information (Unit: persons)
End of June
2020

End ofDecember 2020

End of June2021

End ofDecember 2021

End of June2022

End ofDecember,
2022

Shareholders total

23,697

16,336

14,903

14,406

16,212

15,466

Holder of share
Holder of shares lessthan one unit
Treasury shares
Financial institutions andsecurities companies
Domestic corporations
Overseas corporations,etc.
Individuals and others

22,887

15,514

14,03013,527

15,19014,436

809

821

872

878

1,021

1,029

1

1

1

1

1

1

64

65

69

61

59

55

574

553

544

533

546

540

210

201

203

203

212

222

22,84815,516

14,086

13,60815,394

14,648Treasury 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.

TRUSCO Nakayama(2,243 yen)
354.9
Nikkei Stock Average(28,041.48 yen)
275.0
TOPIX
(2,003.50pt）
222.3

March 2023

Monday, April 24,
2023
The Company's Stock
Closing price
2,235 yen
Nikkei Stock Average
Closing Price
28,747.56 yen
TOPIX2,052.91pt

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

45

Index comparison in the industry
Performance of trading companies and direct sales companies (listed companies) in the same industry[Wholesale]
Closing monthMarketcapitalization(100 million yen)

Year-on-yearchangeNet sales (million yen)
YAMAZEN CORPORATION

2023

March

Forecast

530,000+5.6

988

YUASA TRADING CO.,LTD.

2023

March

Forecast

490,000+5.9

899

246,453

+8.6

1,475

130,000+4.9

630

162,416ｰ

674

44,457+1.9

87

45,150+4.7

233

1,648,476

ｰ-

TRUSCO Nakayama
Corporation

2022

December

Actualresults

NICHIDEN Corporation

2023

March

Forecast

MARUKA FURUSATOCORPORATION

2022

DecemberNaito & Co., Ltd.

2023

February

SUGIMOTO & CO., LTD

2023

March

Total of 7 companies

Actualresults
Actualresults
Forecast-

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 consumable supplies.

[Retail]Marketcapitalization(100 million
yen)

Closing month
Net sales (million yen)

Year-on-yearchangeMISUMI Group Inc.

2023

March

Forecast

377,000

+3.0

9,337

MonotaRO Co.,Ltd.

2022

December

Actualresults

225,970

+19.1

9,791

602,970--

Total of 2 companies

ｰ*For companies that announce consolidated accounting,figures for consolidated accounting are shown.
*All figures represent actual results and forecasts announced
as of April 25, 2023.
*Market capitalization is based on the closing price on April
24, 2023.
46
Copyright 2023 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

148.0

137.7

140.0

128.7

TRUSCO sales index

132.5

128.1

117.1

120.0

106.3
103.1

104.2
101.1

100.0
100.0

95.2

100.0

95.6

90.9

Industrial production index
80.0
2015

2016

2017

2018

2019

2020

2021

2022

(Consolidated) (Consolidated) (Consolidated) (Consolidated)*Index standard: Year 2015 set as 100.
*Industrial production index is the figure published by the
Ministry of Economy, Trade and Industry on January 31, 2023.

Copyright 2023 TRUSCO NAKAYAMA Corporation. All rights reserved.

47