Results for FY2017 ended Mar. 31, 2018
【 Reference 】
Translation

In the case of inconsistences between the Japaneseand English version, the Japanese version will control
and supersede any ambiguities.

May 11th, 2018

NAC Co., Ltd.
Code; 9788 TSE 1st section

Topics
1. Results for the Fiscal Year (FY2017)

…

P. 2

2. Results by Segments

…

P. 9

3. FY2018 Forecasts of Financial Results …

P. 22

4. Plan of Dividends… P. 27

5. Medium-Term Strategy…

6. Appendix… P. 33

P. 29

This document contains certain forward-looking statements including the NAC Group’s sales andcontract targets based on information available to the Group as of the date of release. Thesestatements are subject to a number of risks and uncertainties such as economic and businessconditions as well as the outcomes of new services.
Therefore, please understand that actual future results may differ materially from these projections
set forth in the Group’s forward-looking statements.

11. Results for the Fiscal year (FY2017)2

FY2017 Consolidated Income Statement

1（Millions of yen）

FY2017
Result

FY2016
ResultYoY Comparison

Sales89,81885,901+ 4.6％

Gross profit

34,78534,695+ 0.3％（Gross margin）

38.7％

40.4%

▲ 1.7pt

SG&A

33,14833,938▲ 2.3％

Operating Income

1,637

756

+ 116.3％（Operating margin）

1.8％

0.9%

+ 0.9pt

Non-operating
income and loss

▲ 62

36

―

Ordinary Income

1,574

793

+ 98.4％Extra-ordinary
income and loss

▲ 1,021

▲ 65

―

▲ 994

415

―

Net Income
attributable to owners of parent≫ Consolidated sales rose year on year because the number of handover increased in the Housing sales business and the Rental
business glow sales.
≫ Operating income rose year on year because of sales increases in the Rental business and declines in expenses regarding the Creclabusiness and Mail-order business.
3

1

Sales by Segment（Millions of yen）

Sales

FY2017
Result

FY2016
ResultYoY Comparison

CreCla13,15813,293▲ 1.0％

Rental13,727

13,135+ 4.5％

Construction
Consulting

5,383

6,089

▲ 11.6%

Housing Sales

47,49242,936+ 10.6%Mail-order

10,115

10,463▲ 3.3%

Elimination

▲ 59

▲ 16

－

Total

89,81885,901+ 4.6%≫ In the CreCla Business, our directly managed stores increased sales slightly, but affiliated stores decreased sales due to decreases in sales of bottles.
Overall sales declined year on year.
≫ In the Rental business, sales reached the record high due to sales growth in all business area.
≫ In the Construction Consulting business, sales declined year on year since the construction know-how systems and Eco&Eco decreased sales.
≫ In the Housing Sales Business, the number of orders received and orders in hand increased in Leohouse and J-wood. Moreover, theconsolidated period regarding KDI and KUNIMOKUHOUSE increased compared with previous year, so sales rose year on year.
≫ In the Mail-order business, sales declined year on year due to decrease in sales per customers in the mainstay Macchia Label brandand the Coyori brand.
4

1

Operating Income by Segment（Millions of yen）

Note) The figures inside()marks indicated Operating margin.

Operating income

FY2017
Result

FY2016
ResultYoY Comparison

CreCla596(4.5%)

274(2.1 ％)+ 321(+ 2.5pt)

Rental2,021(14.7%)

1,853(14.1 ％)

+ 167(+ 0.6pt)

Construction
Consulting

775(14.4%)

956(15.7 ％)

▲ 181(▲ 1.3pt)

Housing Sales▲ 736(▲ 1.6%)▲ 622(▲ 1.5 ％)▲ 113(▲ 0.1pt)

Mail-order147(1.5%)▲ 457(▲ 4.4 ％)+ 605（+ 5.8pt)

Elimination,
HQ Cost▲ 1,166▲ 1,247－

1,637(1.8%)

756(0.9％)+ 880（+ 0.9pt)

Total≫ The CreCla business reached the record high of operating income year on year due to stable sales in our direct managed stores andrevisions to management costs.
≫ The Rental business reached the record high of operating income year on year thanks to sales growth in all business area.
≫ The Construction Consulting decreased operating income year on year owing to sales decreases in the construction know-how systems
business and Eco&Eco.
≫ The Housing business glow sales, but it could not make up for increases in construction costs and management costs, so operating
income declined year on year.
≫The Mail-order business improved operating income year on year due to proper operations of investments in advertising.
5

1

Analysis for operating income & loss (YoY change)（Millions of yen）

Comparison

FY2016 Operating Income

756

-

+ 90

+ 0.3%

Sales promotion costs and Advertising Exp.

＋ 958

+ 15.2％

Personnel expenses▲ 649▲ 4.8%

2. Increase andCommission paid

+ 225

+ 15.6％

Decrease of SG&A

Depreciation and Amortization+ 323+ 13.8%

Rent

▲ 161

▲ 6.9%

Others+ 93+ 1.2％

1,637-

1. Gross profit※Increase and Decrease of SG&A
＋ Increase in profit and loss
▲ Decrease in the profit and loss

FY2017 Operating Income

1. The reason of decrease of Gross profit margin≫ Leohouse decreased at 371 millions of yen. The number of handover was far below initial budget largely, so we could not makeup for increases in construction costs and management costs.
≫ JIMOS decreased at 557 million of yen due to decreases in sales per customers.
≫ The consolidated period increased compared with previous year in BELAIR (436 million of yen), KUNIMOKU HOUSE (230
million of yen) and KDI (223 million of yen).
2. The reason of increases and decreases of SG&A
≫ Personnel expenses increased because BELAIR, suzukuri and KUNIMOKU HOUSE newly appropriated 494 million of yen.
≫ Commission paid declined since consulting fees regarding NAC and suzukuri decreased compared with previous year.
≫ Rent increased since BELAIR, suzukuri and KUNIMOKU HOUSE newly appropriated 303 million of yen.
6

1

FY2017 Consolidated Balance Sheet
As of Mar.31
2018

Breakdown（Millions of yen）
As of Mar.31
2017

BreakdownComparison

23,433
12,5792,782
3,452
18,81442,248

55.5%
29.8%
6.6%
8.2%
44.5%
100.0%

22,133
13,813
3,546
4,006
21,36643,499

50.9%
31.8%
8.2%
9.2%
49.1%
100.0%+ 1,300▲ 1,233▲ 764▲ 553▲ 2,551▲ 1,251

Total liabilities

20,9797,154
28,133

49.7%
16.9%
66.6%

20,905
7,087
27,992

48.1%
16.3%
64.4%

+ 73
+ 66
+ 140

Shareholder’s equity

14,87335.2%

16,31437.5%▲ 1,440

Accumulated other comprehensive
income▲ 758▲ 1.8%▲ 807▲ 1.9%+ 48

Total net assets

14,11433.4%

15,50635.7%▲ 1,391

Total liabilities
and net assets

42,248100.0%

43,499100.0%▲ 1,251

Current assets
Total PP&E
Intangible assets
Investments and other assets

Non-current assets
Total assets

Current liabilities

Non-current liabilities■ Current assets： Merchandise and Finished goods ▲495 Real estate + 757 Account receivable and Note receivable + 483■ Non-current assets： Buildings and Structures ▲974 Goodwill ▲481

■ Current liabilities： Advances received on uncompleted construction contracts ▲423 Allowance for store closure + 265■ Non-current liabilities： Long-term loans + 57
■ Equity Ratio：33.4％

7

1

FY2017 Consolidated Cash flows（Millions of yen）

FY2017FY2016Comparison

1. Cash flows fromOperating activities

1,152

3,473

▲ 2,320

2. Cash flows from
Investing activities▲ 905▲ 2,657+ 1,751

3. Cash flows from
Financing activities▲ 473▲ 1,732+ 1,259

Net increase(decrease)in
cash and cash equivalents

▲ 225

▲ 916

+ 690

Cash and cash equivalents
at beginning of year

7,430

8,346

▲ 916

Cash and cash equivalents
at end of year

7,261

7,430

▲ 225

Summary■ Operating activities ： Net income before income taxes +553
Depreciation +1,783
Loss on impairment including Leohouse +647
Corporate tax ▲925
Costs on uncompleted construction contracts ▲496

■ Investing activities ： Purchase of tangible assets ▲645
Proceeds from purchase of investments in subsidiaries resulting in change in scope of consolidation ▲274
■ Financing activities ： Dividends ▲4458

2. Results by Segments

9

2

Results by Segment (1) CreCla ①(Millions of yen)Sales

16,000

To affiliates
Directly managed
13,095

13,293

13,158

4,744

4,870

4,606

8,350

8,422

8,552

FY2015FY2016FY2017

12,000

8,000
4,000
0

≫ Our direct managed stores kept up sales efforts using advantages of two-way business, so sales increased slightly.
≫ In our affiliated stores, sales declined due to decreases in sales of bottles.

(Millions of yen)

1,500

Operating
IncomeOperating income
1,000

596
274

500
0
-500

▲ 201

FY2015FY2016FY2017≫ Operating income increased year on year due to stable sales in our direct managed stores and revisions to management
costs.
10

2

Results by Segment (1) CreCla ②(Millions of yen)

(Millions of yen)

5,000

1,000
Sales

Operating income

4,000
3,209

3,450

3,614
3,252

3,182

3,243

3,495
3,214

3,220

3,182

800
3,383
3,097

3,000

600

2,000

400
236

201

1,000

273

169

191

89

42

3

14

0

▲104

▲186

▲262

0

-1,000-200

Q1-2,000

200

Q2

Q3

FY2015

Q4

Q1

Q2

Q3

FY2016

Q4

Q1

Q2

Q3

FY2017

Q4-400≫ The CreCla business invests in advertising, especially, in the first quarter.
≫ The CreCla business tends to increase operating income in the second quarter.
11

Results by Segment (2) Rental ①

2(Millions of yen)

16,00012,000Sales

AI Life

1,326

13,727
46
1,376

2,270

2,338

2,450

9,242
8,567

9,469
8,478

9,854
9,126
6,880

FY2015FY2016FY2017

Earnestwith

12,765
1,252

Duskin13,135

8,000
4,000
0
≫ The Duskin business focused on existing customers to enhance customer satisfaction. Moreover, we utilised M&A
strategy to expand business areas. As a result, sales increased year on year.
≫ The With-branded pest-control devices business started sales of the newest product called “With” from July, 2017.
What is more, the number of loyal customers rose thanks to sales promotions before the summer peak demand season inboth our directly managed stores and affiliated stores. Overall, sales rose year on year.

(Millions of yen)

≫ Earnest corporation recorded sales growth thanks to steady orders received via the Internet and an increase inreferrals of new customers by existing customers.

2,200

Operating
Income

2,021
1,841

1,853
This segment includes

1,700

Amortization of goodwill

Operating income

at 2 million yen related to AI LIFE.

1,200
FY2015FY2016FY2017≫ Operating income increased year on year owing to sales increases in all sections.
12Results by Segment (2) Rental ②

2(Millions of yen)

(Millions of yen)

4,000

800
Sales

Operating Income

3,641
3,465

3,500
3,075

3,221

3,271

3,196

3,170

3,284

2,500

3,441

3,301

470

700

629

566

3,000
442

3,214

3,341

600
491

492
436

462

457

500

437
463

366

2,000

400

1,500

300

1,000

200

500

100

-

-

Q1

Q2

Q3
FY2015

Q4

Q1

Q2

Q3

FY2016

Q4

Q1

Q2

Q3

Q4

FY2017≫ The Rental business stabilizes both sales and operating income through the year.
13

2

Results by Segment (3) Construction Consulting ①(Millions of yen)
8,000
7,000
6,000

Sales

※① It includes internal transactions about 202 millions yen. ※ ② It includes internal transactions about 219 millions yen.
Eco＆EcoConstruction materials

Know-how system

6,676
595

※① 6,292

1,182※② 5,603

627

5,000
4,000

3,529
2,768

2,780

2,617

2,342

2,194

FY2015FY2016FY2017

3,000
2,000
1,000
0

≫ In the construction know-how systems, small and midsize building contractors tented to reduceinvestments resulting from uncertainty about market prospects. Thus, sales declined year on year.
≫ The construction materials started offering construction materials for subdivided housing unit andrenovation in the adjacent market, so it produced positive results. Overall, sales increased year on
year.
(Millions of yen)

≫ Eco & Eco Co., Ltd., have conducted an overhaul of income structure, sales promotions and process
management to generate stable profits in the future, so sales declined significantly.

1,500
Operating income

Operating
Income

1,000

775

1,146
956

This segment includes Amortization of500

goodwill at 18 million yen related to
Eco&Eco.
0

FY2015FY2016FY2017≫ In the Construction Consulting business, sales declined since the construction know-how systems andEco&Eco decreased sales year on year.
14Results by Segment (3) Construction Consulting ②

2(Millions of yen)

2,500(Millions of yen)

700

Sales

2,243
2,086

Operating income

2,000

600

506
1,685

1,500

1,419 1,363

1,382 1,365
302
291

1,000

320

1,327

1,220

1,610

500

441

400

1,230 1,214

300

232

215
103

500

193

130

200
94
100

45
-

Q1

Q2

Q3

FY2015

Q4

Q1

Q2

Q3

FY2016

Q4

Q1

Q2

Q3

Q4

FY2017≫ Both sales and operating income tend to increase around the fourth quarter.
15

Results by Segment (4) Housing sales ①

2(Millions of yen) ※① It includes internal transactions about 20 millions yen.

60,000Sales

suzukuri

Kunimokuhose

KDI

J-woodLeohouse（suburban areas）

Leohouse（urban areas）

40,00037,452
2,792

20,00030,5770※② It includes internal transactions about 392 millions yen.
※② 47,875※① 42,956

3,188
3,941

31,144

174
1,284
5,115
4,536

【 Suburban areas 】

Others【 Urban areas 】
Tokyo Kanagawa
Chiba Saitama

31,751

4,081

4,682

5,013

FY2015FY2016FY2017≫ Regarding Leohouse and J-wood, sales increased year on year since the number of handover exceeded previous year.
≫ The consolidated period in KDI and KUNIMOKU HOUSE increased compared with previous year.
(Millions of yen)
1,000This segment includes

Operating income

the Amortization of goodwill at 103 million yen
500

related to to J-wood, KDI andOperating
IncomeKUNIMOKUHOUSE.
0

FY2015FY2016FY2017

▲412
-500

▲622

▲736

-1,000≫ Operating income decreased because the number of handovers in Leohouse and J-wood were far below initial budget largely, so
we could not make up for increases in construction costs and management costs.

16

2

Results by Segment (4) Housing sales ②(Millions of yen)

(Millions of yen)
Sales

Operating income

4,000
19,82220,00019,1483,000
13,932

15,000

1,735

10,372

1,302

10,0009,012

11,7302,000
11,127

1,530

9,725

1,000

7,644
5,501
20

5,000

▲1,640▲1,543▲1,317Q2Q3FY2015

0

▲671

0

Q1

▲292
▲334

▲418

-5,000

5,485

▲144

4,376

Q4

Q1

Q2

Q3

Q4

FY2016Q1-1,000Q2Q3

Q4-2,000FY2017≫ Sales and operating income tend to increase around Q4

17

2

Results by Segment (4) Housing sales③

127 stores（ Leohouse ：101 stores, J-wood ：10 stores, KDI ：3 stores, suzukuri : 11 stores, KUNIMOKU HOUSE : 2 stores）
Leohouse

Leohouse

ClosureLeohouse（ As of Des.31, 2017 ）( During the 4th quarter )KDI

J-wood（ As of Mar.31, 2018 ）（ As of Mar.31, 2018 ）suzukuri

KUNIMOKU HOUSE（ As of Mar.31, 2018 ）（ As of Mar.31, 2018 ）Plan of Closure（ After Mar.31, 2018 ）Aomori

Niigata

Shizuoka

Fukushima
Tochigi

SaitamaTokyo

Kanagawa

Chiba

Wakayama

Miyagi

Ibaraki

Tokushima

Aichi

Kochi

Yamagata

Yama-nashi

Mie

Kagoshima

Nara

KagawaOsaka

MiyazakiOkinawa

Ehime

Kuma
-moto

Shiga

Iwate

NaganoOkayama

Akita

Gumma

Gifu

Hiroshima

Toyama

Fukui

Kyoto

Tottori

Hyogo

Yamaguchi

Saga

Nagasaki

Oita

Shima
-ne

Ishikawa

Leohouse： 101 stores ( Branch : 45 / Model display site : 53 / Others : 3 )J-wood： 10 stores ( Housing café : 3 / Model display site : 7 )KDI：
3 store ( Branch : 3 )suzukuri： 11 store ( Branch : 9 / Other : 2 )KUNIMOKU HOUSE：
2 store ( Branch : 1 )
Fuku
-oka

Hokkaido

18

2

Results by Segment (4) Housing sales④

Quarterly store openings, number of orders, completions and average sales price（Leohouse)（Number of houses ordered）
FY2015FY2016FY2017

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Number ofOrders

387

533

406

459

457

677

397

550

439

542

419

489

Complet
ions

238

500

347

694

186

390

403

871

188

478

396

834

Ordersin hand

1,035

1,057

1,109

861

1,114

1,385

1,361

1,016

1,245

1,294

1,309

944

Change

+133

+22

＋52

▲248

+253

+271

▲24

▲345

+229

+49

+15

▲365

※1

※1

Unit
price

18.49 million yen※1

18.26 million yen

17.92 million yen※1 Unit price excludes additional costs and exterior construction costsStore
openings

7

Total
stores

※２

109

0

0

※3

108

0
※4

108

2

0

0

0

105

105

105

105

※5

105

Closing of model display sites :Closing of model display sites :

※2 ▲5

※4 ▲3

※3 ▲1

※5 ▲2

5

0

0

105

105

105

※6

0
※7

101

※6 Brand change to suzukuri ▲5※7 Closing of unprofitable model display sites ▲419

Results by Segment (5) Mail-order ①

2(Millions of yen)
15,000※① It includes internal transactions about 55 millions yen.
Other
Mail-order

10,37811,00010,463Sales※① 10,115

641
7,000

9,485
3,000

FY2015-1,000FY2016FY2017≫ The mainstay Macchia Label brand and the Coyori brand of skin and hair care products made from natural ingredients
increased the number of new customers. However, sales decreased year on year due to a slowdown in the repeat rate and thedecrease in sales per customers.
(Millions of yen)

200

Operating
IncomeFY2015FY2016FY2017This segment includes
Amortization of goodwill at

147

Operating income

100

566 million yen related to
JIMOS and BELAIR.

0

▲105

▲83

-100

-200

≫ Operating income improved year on year because of the proper operation of investments in advertising and promotion tomaintain stable profits.

20

2

Results by Segment (5) Mail-order ②（Millions of yen）
4,000

(Millions of yen)
Sales

800

Operating Income
2,993

2,960

3,000
2,467

2,492

600

2,795
2,458

2,528

2,493

2,447

2,547

2,395

2,376

2,000

400
233

1,000

233

213

206

200

112

0

000

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

▲89
▲135

!!!(1,000!!!)▲316!!!(2,000!!!)

▲266
▲215

FY2015FY2016

▲189

-200

▲202

FY2015FY2017-400≫ Sales and operating income generally are tilted toward the second half of the year due toaggressive investment in advertising and promotions the first half of the year.

21

3. FY2018 Forecasts of Financial Results and Strategies

22

FY2018 Forecasts of Financial Results

3（million yen）

FY2017FY2018YoY comparison

Sales89,81896,500＋ 7.4％

Operating income

1,637

2,000

＋ 22.2％

Ordinary income

1,574

2,050

＋ 30.2％

Net income

▲ 994

600

-

Dividends per share

18 yen34 yen-▲ 59.15yen

35.68yen＋ 94.83yen

EPS≫ We reorganize the Housing Sales Business to increase sales, operating income, ordinary income
and net income.

23

3

FY2018 Sales Forecasts by Segment（Millions of yen）

Sales

ResultFY 2017Plan
FY 2018

Comparison

CreCla13,15813,700＋ 4.1％

Rental13,727

14,200＋ 3.4％

Construction
Consulting

5,383

6,300

＋ 17.0％

Housing Sales

47,49252,500＋ 10.5％Mail-order

10,1159,800▲ 3.1％

Elimination

▲ 59

-

-

Total

89,81896,500+ 7.4％

24

3

FY2018 Operating income Forecasts by Segment（Million of yen）

OperatingincomeResultFY 2016Plan
FY 2017Comparison

CreCla596(4.5%)

405(3.0％)▲ 32.1％(▲ 1.5pt)

Rental2,021(14.7%)

2,000(14.1％)▲ 1.1％(▲ 0.6pt)

Construction
Consulting

775(14.4%)

755(12.0％)▲ 2.6％(▲ 2.4pt)

Housing Sales▲ 736(▲ 1.6%)160(0.3％)(＋ 1.9pt)

Mail-order147(1.5%)

80(0.8％)▲ 45.8%(▲ 0.7pt)

Elimination,
HQ Cost▲ 1,166▲ 1,400-

1,637(1.8%)

2,000（2.1％）＋ 22.2％（+ 0.3pt)

TotalNote)The figures inside( )marks indicate operating margin.

25

3

FY2018 Forecasts of Financial Results■ Sales:96.5 billion yen (YoY Comparison + 7.4％)■ Operating income 2 billion yen (YoY comparison + 22.2%)
Housing Sales

Rental[ Dust control products business ]⇒ Carry out M&A strategy⇒ Expand the total care service[ Pest-control devices business]⇒ Win new customers and implement sales promotion[ Leohouse ]⇒ Withdrawal from unprofitable stores to reduce fixed costs⇒ Proper Distribution of resources to improve profitability⇒ Rebuild sales systems to meet demands of the surge ahead of
the consumption tax hike.
[J-wood]⇒ Lay the foundation for better business management by theuse of SNS[KDI]⇒ Focus on metropolitan area and reduce construction costs[suzukuri]⇒ Expand targets and form a business tie-up with different

type of business

CreclaConstruction Consulting[ Know-how business ]⇒ Enhance bland through improvement⇒ Strengthen sales promotion
regarding ZEH and terminationof national policyof customer services⇒ Supply products to meet a wide
variety of customer need

⇒ Delivery at nighttime andholiday[ Construction materials ]⇒ Strengthen coordination with
Know-how business

Mail-order
Acquire new customers⇒ Expand targets and form abusiness tie-up with different
type of business⇒ Tap into overseas markets

26

4. Plan of Dividends

27Plan of dividends：Dividend Policy with DOE 4%4※ Payout ratio : within 100 %

（Yen）
40

Payment amount of Dividends

30

26

20

19

19

19

18

10

8

8

0
-

FY2015Interim

Dividends per
share

FY2016Year-end

38 yenInterim

FY2018 (Plan)

FY2017Year-end

27 yenInterimYear-end

18 yenInterimYear-end

34 yen28

5. Medium-Term Strategy

29

5

Medium-Term Strategy

Regarding medium-term strategy for FY2020, we

review the current plan and announce new strategy
during first quarter in FY2018.

30

6. Appendix

31

6Company's outline（As of the end of September 2017）

Company name

NAC Co., Ltd.

Head office

Shinjuku Center Building, 1-25-1 Nishi-shinjuku Shinjuku-ku, Tokyo

EstablishedMay 1971

President

Kan Yoshimura

Businesses■ CreCla（Production and sale of bottled water）■ Rental（Duskin franchise business, pest control machine rental, regular cleaning plan）■ Construction Consulting（Construction know-how, solar energy systems）■ Housing Sales（Contract construction of a custom-built house, finance and insurance affairs with housing
sales）■ Mail-order (Cosmetics and health food mail-order sales)

Consolidated
companies

Leohouse Co., Ltd.（Housing sales）
Earnest Corporation（Building maintenance）
JIMOS Co., Ltd. （Mail-order）
BELAIR Co., Ltd. (Mail-order)
J-wood Co., Ltd. （Housing sales）
Eco ＆ Eco Co., Ltd.（Sales of energy-saving products ・Construction）
KDI Co., Ltd. （Housing sales）
Nac life partners Co., Ltd. （Housing sales）
KUNIMOKU HOUSE Co., Ltd. （Housing sales）
suzukuri Co., Ltd. （Housing sales）
AI LIFE Co., Ltd. （Rental businesss）

Employees

2,165(consolidated)

Capital stock

4,000 millions yen

Number of shares

18,719,250 shares (share unit :100 shares）

Number ofshareholders

13,269 (Total number of shareholders; treasury shares are excluded)32

6

Key Financial Indicators（Consolidated）
FY2016
Average number of shares
during the period

FY201

Comparison

16,854,157 shares

16,807,436 shares▲ 46,721 shares

Net assets per share（BPS）

923.41 yen

839.28 yen▲ 84.13 yen

Net income per share（EPS）

24.65 yen

▲ 59.15 yen▲ 83.79 yen

Equity ratio

35.7%

33.4%

▲ 2.3pt

Ratio of shareholder’sequity to Net income
（ROE）

2.7%

▲ 6.7％▲ 9.4pt

Dividends per share

27 yen18 yen▲ 9 yenDividend ratio

109.5%▲ 30.4%▲ 139.9pt

2.9%

2.1%

▲ 0.8pt

Ratio of dividends toshareholder’s equity33

6

Company History
May. 1971

Established Duskin Tsurukawa in Machida city

Aug. 1977

Changed company name to NAC Co., Ltd

Sep. 1995

Listed on the JASDAQ market

Jan. 1997

Listed on the 2nd section of the Tokyo Stock Exchange

Sep. 1999

Listed on the 1st section of the Tokyo Stock ExchangeDec. 2001

Started bottled water “CreCla” delivery businessFeb. 2002

Started housing sales business through Leohouse

Mar. 2010

Achieved 50 billion yen of sales when celebrating its 40th year

Mar. 2012

Acquired Earnest Corporation

Jul. 2013

Acquired JIMOS Co., Ltd. & J-wood Co., Ltd.

Apr. 2015

Opened the CreCla Honjo-Plant

Sep. 2015

Acquired Eco & Eco Co., Ltd.

May. 2016

Acquired KDI Co., Ltd.

Dec. 2016

Acquired BELAIR Co., Ltd.

Apr. 2017

Acquired suzukuri Co., Ltd.

Jun. 2017

Acquired KUNIMOKU HOUSE Co., Ltd.

Sep. 2017

Acquired AI LIFE Co., Ltd.
34

6

Positioning in a market of each business

CreCla■ Market leader in bottled water sales（Number of affiliated stores : 600）
■ Market leader in bottled water production■ First HACCP certified business in the industry■ First Eco Mark certified business in the industry■ First in the industry to open an R&D center

Rental■ Highest sales of all Duskin franchisees（out of approximately 2,000 companies）■ With-branded pest control devices for restaurants first in the industry to be approved by Ministry of Health,Labour and Welfare■ Acquired AI LIFE Co., Ltd. (September, 2017) that runs Duskin business.

Construction
Consulting■ Nac members ( Construction company : 6,000 )■ Providing support for affiliated building firms through order promotion and cost reduction services, including
solar power systems and products for Smart House■ Acquired Eco & Eco Co., Ltd. (September, 2015) that deals with energy-saving products.

Housing
Sales■ Contract construction of a custom-built house under the Leohouse brand■ Leading local builder in contract construction (FY2011, FY2012 and FY2013)■ Acquired J-wood Co., Ltd. (July 2013) that produces natural houses■ In the survey of customer’s satisfaction of custom-built house conducted by Oricon, we won female customer’ssatisfaction No.1 in three categories.
■ We acquired KDI Co., Ltd. that deal with subdivided housing unit and custom-built house in metropolitan area.
■ We acquired suzukuri Co., Ltd. that perform business in a matrix concept.
■ We acquired KUNIMOKU HOUSE Co., Ltd. that expands the housing sales business in Hokkaido.W

Mail-order■ In July 2013, the mail-order business entry by a subsidiary of JIMOS Co., Ltd.
■ Various cosmetics for skin and hair care suitable for repeat use 260 thousand female customers (mainly in their40-60’s)■In the "'14 Yahoo! BEAUTY mail order cosmetics grand prize you choose."
It won the products No.1 of JIMOS in base makeup items department35

6FY2017 Sales and Operating income Breakdown
CreClaRentalConstruction Consulting

CreClaRentalMail-order

Mail-order

Construction Consulting

Housing Sales

Housing Sales
CreClaConstruction
Consulting

15%

28％

CreCla21％

RentalHousing
Sales

53%

15%

Sales

OperatingincomeMail-order

5％

1,637 million

89,818 million
Mail-order
Construction
Consulting

通販

HousingSales

11%

Rental

72％

6%

▲26％
※except HQ-costs

Operating margin on sales
CreClaRentalConstruction
Consulting

Mail-order

Housing
sales

Total

4.5%

14.7%

14.4%

1.5％

▲1.6%

1.8%
36

6

Operating income trend by segment（Million of yen）

3,003
2,686

3,000

2,500

Invested for expanding
market

2,000
1,500

Accelerated store
openings

2,500
2,000

1,858
1,208

1,500

1,000
500

【Housing sales】（Million of yen）

【CreCla】-175 -413 -610 -213 198

529 576400-60 -78 184375

143 -201274

506 405

1,000
500

0

-19 -273 -110

0

-500

-500

-1,000-1,000-1,500509
389 235-1,317-661

388-412 -622 -736 160-1,500（Million of yen）

【Mail-order】

1,000

Actively
advertising
investment

500-199-222 -105-457

0

147 80-500（Million of yen）
2,500
2,000

【Rental】（Million of yen）
2,000

1,999
1,5001,5801,4921,392
1,445
1,321

2,021
1,8411,853

1,802
1,738
1,654
1,5351,582
1,505

2,500

1,500

1,000

1,000

500

500

0

0

-500

-500

-1,000-1,000-1,500

1,767
1,616
1,564
1,501

2,000

1,500

【Consulting Construction】

915
508

1,146

937
619

425 543670

976 900

956

775 755-1,500

We focus on aggressive investment toward growth centering on the Rental Business and the Construction
Consulting Business, which show stable business performance.
37