Results for the 1st Quarter ended
August 8th, 2018

NAC Co., Ltd.
June 30, 2018【 Reference 】 Code; 9788
TSE 1st section

Translation

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

Topics
1. Results for the 1st quarter…

2. Results by Segments… P. 93. FY2018 Forecasts of Financial Results

…

P. 2

P. 22

4. Medium-Term Strategy/ Plan of Dividends … P. 27
5. Appendix

…

P. 30

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

11. Results for the 1st quarter

2

1

Q1 FY2018 Consolidated Results
3 months
ending FY2017（Millions of yen）

3 months
ended FY2018

YOY
Comparison

15,865

15,581▲ 1.8 ％

Gross profit

7,108

7,126

+ 0.3 ％

（Gross margin）

44.8 %

45.7 %+ 0.9 pt

8,869

8,623

▲ 2.8 ％

Operating Income▲ 1,760▲ 1,497－（Operating margin）▲ 11.1 ％▲ 9.6 ％－

Non-operating
income and loss

4

▲ 11

－

Ordinary Income▲ 1,756▲ 1,508－

Extra-ordinary
income and loss

▲ 177

▲3

－

▲ 1,461▲ 1,106

－

Sales

SG&A

Net Income
attributable to owners ofparent≫ Consolidated sales declined year on year due to sales decreases in the Construction Consulting business, Housing

Sales business and Beauty and Health business.
≫ Operating income rose year on year thanks to the proper operation of investments in advertising and promotion in
the CreCla business and Beauty and Health business.
3

1

Sales & Operating income trend by Quarter（Million of yen）

Sales

（Million of yen）

Operating Income

35,0005,000
30,781

29,51530,0004,000

25,00019,82220,00015,00020,75922,283 22,153
2,389

3,000
2,534

15,865

14,53815,581

1,000

664

10,000

2,000

199

640

0

5,000
▲ 414
▲ 1,4970▲ 5,000▲ 1,760▲ 1,858
Q1

Q2
FY2016

Q3

Q4

Q1

Q2

▲ 1,000▲ 2,000

Q3
FY2017Q4Q1FY2018≫ The Nac group tends to post an operating loss in the 1st quarter because
hand-over in the Housing sales business usually concentrate around 4thquarter.
4

1

Sales by Segment（Millions of yen）

3 months
ending FY2017

3 months
ended FY2018

YOY
Comparison

CreCla

3,182

3,273

+ 2.8 ％

Rental

3,341

3,541

＋ 6.0 ％

Construction
Consulting

1,327

1,080

▲ 18.6 ％Housing Sales

5,485

5,419

▲ 1.2 ％

Beauty and Health

2,547

2,277

▲ 10.6 ％Elimination

▲ 19

▲9

－

Total

15,865

15,581▲ 1.8 ％≫ In the CreCla business, a participation rate of the new service called “CreCla Security Support” has been glowing
steadily from September, 2017. Thus, sales rose year on year.
≫ In the Rental business, sales increased in all sections.
≫ In the Construction Consulting business, sales decreased year on year since the construction materials businessdropped sales.
≫ The Housing Sales business declined sales year on year owing to the delay of the construction and delivery causedby the lack of manufacturers and craftspeople in Leohouse and J-wood.
≫ The Beauty and Health business declined sales year on year because of a slowdown in the repeat rate anddecreases in sales per customers
51

Operating income by Segments
3 months
ending FY2017（Millions of yen）
3 months
ended FY2018

YOY
Comparison

CreCla▲ 104(▲ 3.3 ％)+ 87(+ 2.7 ％)+ 191(+ 6.0 pt)

Rental+ 437(+ 13.1 ％)+ 431(+ 12.2 ％)▲5(▲ 0.9 pt)

Construction
Consulting+ 45(+ 3.4 ％)+ 49(+ 4.5 ％)+3(+ 1.1 pt)

Housing Sales▲ 1,640(▲ 29.9 ％)▲ 1,765(▲ 32.6 ％)▲ 125(▲ 2.7 pt)

Beauty and Health▲ 202(▲ 8.0 ％)▲ 50(▲ 2.2 ％)+ 152（+ 5.8 pt)

▲ 296

▲ 249

+ 46

▲ 1,760(▲ 11.1 ％)▲ 1,497(▲ 9.6 ％)+ 263(+ 1.5 pt)

Elimination,
HQ CostTotal≫ In the CreCla business, our directly managed store increased sales, so operating income increased year on year.
≫ The Rental business declined operating income year on year due to the allowance for the consumer service point.
≫ In the Construction Consulting business, operating income increased year on year since Eco&Eco rose sales.
≫ The Housing business decreased operating income year on year owing to the decrease in sales and the rise inconstruction costs.
≫ In the Beauty and Health business, operating income improved year on year because of the proper operation of
investments in advertising and promotion.
6

1

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

Comparison

FY2017 Operating Income▲ 1,760-+ 18+ 0.3 %

＋ 143

+ 8.3 %

Others+ 49+ 2.3 %

Depreciation and Amortization+ 47+ 9.6 %

Rent

+ 24

+ 4.0 %

Personnel expenses▲ 16▲ 0.5 %

Commission paid▲2

▲ 0.9 %

▲ 1,497-

1. Gross profit
Sales promotion costs and Advertising Exp.

2. Increase andDecrease of
SG&A※ Increase and Decrease of SG&A
＋ Increase in profit and loss
▲ Decrease in the profit and loss

FY2018 Operating Income
1. The reason of increases in Gross profit≫ The CreCla business and Rental business increased gross profit.

2. The reason of increases and decreases in SG&A
≫ Regarding decreases in sales promotion costs and advertising expenses, JIMOS focused on the proper operation of
investments in advertising and promotion.
≫ Concerning decreases in depreciation and amortization, Leohouse closed unprofitable branches.

71Consolidated Balance Sheet（Millions of yen）

As of Mar.
2018

Break down

As of June.
2017

Break downComparison

22,98054.6 %

22,840

54.7%

▲ 139

Total property, plant andequipment

12,57929.9 %

12,113

29.0%

▲ 466

Intangible assets

2,782

6.6 %

2.570

6.2%

▲ 212

Investments and other assets

3,773

9.0 %

4,229

10.1%

+ 455

Non-current assets

19,13545.4 %

18,912

45.3%

▲ 222

Total assets

42,115100.0 %

41,753100.0 %

▲ 362

Current liabilities

20,97349.8 %

21,105

50.5%

+ 132

Non-current liabilities

7,027

16.7 %

7,580

18.2%

+ 552

Total liabilities

28,00166.5 %

28,686

68.7%

+ 685

Shareholder’s equity

14,87335.3 %

13,76733.0%▲ 1,106

Accumulated othercomprehensive income▲ 758▲ 1.8 %

▲ 700

▲ 1.7%＋ 58

Total net assets

14,11433.5 %

13,06731.3%▲ 1,047

Total liabilities and net assets

42,115100.0 %

41,753100.0 %

▲ 362

Current assets■ Current assets ：Costs on uncompleted construction contracts +2,223 Cash and deposits ▲1,809
Trade notes account・Accounts receivable ▲953
■ Non-current assets ： Building and structures ▲248
■ Current liabilities ：Advances received on uncompleted construction contracts +2,991 Accounts payable ▲2,489■ Non-current liabilities ： Long-term loans +760 Lease obligations ▲132
Equity Ratio ： 31.3％
8

2. Results by Segments

9

2

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

To affiliates

Directly managed

4,000

Sales

3,243

3,181

3,273

1,193

1,105

1,077

2,050

2,077

2,195

FY2016 Q1

FY2017 Q1

FY2018 Q1

3,000
2,000
1,000
0

≫ In our direct managed stores, a participation rate of the new service called “CreCla Security
Support” has been glowing steadily from September, 2017. Thus, sales rose year on year.
≫ In affiliates, the number of customers in affiliated stores and sales of bottles to customers
declined. Then, sales decreased year on year.
（Millions of yen）

Operating
IncomeOperating income

500
250

▲186

▲104

+ 87

0

FY2016 Q1

FY2017 Q1

FY2018 Q1

-250
-500

≫ Our directly managed store increased sales, so operating income increased year on year.
102

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

Operating income（Millions of yen）

5,000

1,000
3,614

4,000
3,243

3,214

3,220

3,182

3,495

3,383

3,097

3,273

3,000

600

2,000

236
201

1,000

169

400
273

191

87

89

0
-1,000

800

200
0

▲ 104

▲ 186

Q1

Q2

Q3

Q4

Q1

-200
Q2

Q3

Q4

Q1

-2,000-400
FY2016FY2017FY2018≫ The CreCla invests in advertising during Q1 & Q3 than Q2 & Q4.
≫ The CreCla business tends to increase operating income in Q2 & Q4.
11

2

Results by Segment (2) Rental ①
Earnest（Millions of yen）

Sales

with

Duskin

4,000
3,000

3,170
312
570

3,341
340
601

2,287

2,400

FY2016 Q1

FY2017 Q1

3,541
343
610

2,000

2,588

1,000
0
FY2018 Q1≫ The Duskin business opened a new store and focused on existing customers, so the number of customers
and sales per customer rose gradually. As a result, sales increased year on year.
≫ The With-branded pest-control devices business also opened a new store and strengthened sales
promotions before the summer peak demand season, so sales rose year on year.

≫ Earnest also grew sales since there were increases in referrals of new customers by existing customers.
（Millions of yen）

Operating
Income 500

Operating income

366

437

431

FY2017 Q1

FY2018 Q1

400
300
200

100
0
FY2016 Q1≫ Operating income decreased year on year due to increases in labor costs and an allowance for the
consumer service point.
12

2

Results by Segment (2) Rental ②
Sales(Millions of yen)

Operathing income（Millions of yen）

4,000

3,500

800
3,170

3,284

3,000

3,465
3,214

3,341

3,441

3,541
3,301

600
491

462

457

700

629

566

2,500

2,000

3,641

463

437

366

431

500

400

1,500

300

1,000

200

500

100

-

-

Q1

Q2
FY2016

Q3

Q4

Q1

Q2

Q3
FY2017Q4Q1FY2018≫ Sales and Operating income hold steady through the year over.
13

2

Results by Segment (3) Construction Consulting ①※① It includes internal transactions about 27 millions yen.

※② It includes internal transactions about 40 millions yen(Millions of yen) ※③ It includes internal transactions about 40 millions yen.

Sales

2,000
1,500
1,000
500
0

Eco&EcoConstruction materials

Know-how system※ ② 1,367※ ① 1,247

100

250

※ ③ 1,120

143
801

520

523

476

466

454

FY2016 Q1

FY2017 Q1

FY2018 Q1≫ The construction know-how systems actively reinforced support programs for small and midsize building contractors andpromoted new products; however, sales declined year on year.
≫ In the construction materials, sales decreased year on year owning to the delay in delivery of commodities, which wasaffected by Revised-FIT.
≫ Eco & Eco have conducted an overhaul of income structure, sales promotions and process management in fiscal 2017,
so sales improved year on year.

(Millions of yen)

Operating
Income

300
250
200
150
100
50
0

Operating income

103

FY2016 Q1

45

49

FY2017 Q1

FY2018 Q1≫ Operating income increased year on year thanks to increases in sales of Eco & Eco and revisions
to management costs.

14

Results by Segment (3) Construction Consulting ②

2

Sales

(Millions of yen)

Operating income(Millions of yen)

2,500

700
2,086

2,000

600

506
1,419

1,500

1,363

1,327

1,220

1,230

1,214

1,610

500

441

400
1,120
300

1,000
193
130
500

200

215

103

45

94

49

-

100
-

Q1

Q2
FY2016

Q3

Q4

Q1

Q2
FY2017Q3Q4Q1FY2018≫ Sales and Operating income tend to increase around Q4.
15

2

Results by Segment (4) Housing sales ①※① It includes internal transactions about 6 millions yen.
(Millions of yen)

Sales 10,000【 Suburban areas 】【 Urban areas 】

OthersTokyo Kanagawa
Chiba Saitama※② It includes internal transactions about 116 millions yen.

suzukuri
KDI
Leohouse（suburban areas）

8,000

KUNIMOKU HOUSE
J-woodLeohouse（urban areas）※②※① 5,491

6,000

5,535
135
198
1,226
723

4,000

4,376
560

864
822

2,000

3,289

3,252

2,698

0

527

552

553

FY2016 Q1

FY2017 Q1

FY2018 Q1≫In Leohouse, sales declined year on year owing to the delay of the construction and delivery caused by thelack of manufacturers and craftspeople.
≫ In J-wood, the number of handover dropped compared with previous year. Hence, sales decreased year on year.
≫ KDI increased sales significantly year on year thanks to new stores in the metropolitan area that was opened in September, 2017.

Operating (Millions of yen)
Income 500

Operating income

0
FY2016 Q1

FY2017 Q1-500-1,000-1,500FY2018 Q1This segment includes the Amortization of▲1,543

goodwill at 26 million yen related to J-wood,▲1,640

KDI and KUNIMOKU HOUSE.

▲1,765-2,000≫ Operating income also decreased year on year due to decreases in sales and the rise in construction costs
that was affected by Tokyo Olympics and redevelopment in the metropolitan area.

16

Results by Segment (4) Housing sales ②

2

Sales

Operating income(Millions of yen)

(Millions of yen)

19,82220,00019,148

4,000
3,000

15,00011,730
9,012

10,000

5,000

9,725

1,735

4,376

Q2

FY2016

▲ 292

1,000
0

▲ 144
-1,000▲ 1,640▲ 1,543
Q1

5,535
▲ 334

0

2,000

1,530
5,485

▲ 671

-5,00011,127Q3

Q4

Q1▲ 1,765

Q2

Q3

Q4

FY2017Q1-2,000FY2018≫ Sales and Operating income tend to increase around Q4.
17

2

Results by Segment (4) Housing sales ③
Total 115 stores（ Leohouse ：88 stores, J-wood ：10 stores, KDI ：3 stores, suzukuri : 12 stores, KUNIMOKU HOUSE : 2 stores）
Leohouse

Leohouse opened a new store

Leohouse closed unprofitable stores（ As of Mar.31, 2018 ）during the first quarter

during the first quarter

KDI

J-wood（ As of Jun.30, 2018 ）suzukuri（ As of Jun.30, 2018 ）suzukuri opened a new store

KUNIMOKU HOUSE（ As of Mar.31, 2018 ）during the first quarter（ As of Jun.30, 2018 ）Leohouse

Plan of Closure（ After Jun.30, 2018 ）Hokkaido

Leohouse：
88 stores ( Branch : 42 / Model display site : 42 / Others : 4 )J-wood：10 stores ( Housing café : 3 / Model display site : 7 )KDI：
3 stores ( Branch : 3 )suzukuri：
12 stores ( Branch : 11 / Other : 1 )KUNIMOKU HOUSE：
2 stores ( Branch : 1 )Ishikawa

Fukushima
Tochigi

SaitamaShizuokaTokyo

Kanagawa

Chiba

Wakayama

Miyagi

Ibaraki

Tokushima

Aichi

Kochi

Yamagata

Yama-nashi

Mie

Kagawa

Nara

Ehime

Shiga

Iwate

Gumma

NaganoOkayama

Gifu

Hiroshima

Akita

NiigataToyama

Fukui

Kyoto

Tottori

Osaka

MiyazakiOkinawa

Kagoshima

Shim
a-ne

Hyogo

Oita

Yamaguchi

Saga

Nagasaki

Kuma
-moto

Fuku
-oka

Aomori18

2

Results by Segment (4) Housing sales ④

Quarterly store openings, number of orders, completions and average sales price（Leohouse)（Number of houses ordered）
FY2016FY2017FY2018

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Numberof Orders

457

677

397

550

439

542

419

489

470

Comple
tions

186

390

403

871

188

478

396

834

156

Ordersin hand

1,114

1,385

1,361

1,016

1,245

1,294

1,309

944

1,233

Change

+253

+271

▲24

▲345

+229

+49

+15

▲365

+289

※1

※1

Unit
price

18.49 million yen

Q2

Q3

Q4

※1

18.26 million yen

1,950 million yen (Plan)※1 Unit price excludes additional costs and exterior construction costsStore
openings

Total
stores

2

0

0

0

105

105

105

105

※1

Closing of model display sites :
※1 ▲2

5

0

0

105

105

105

※2

0
※3

101

※2 Brand change to suzukuri ▲5

1
※4

88
※4 Closing of unprofitable model display sites ▲14※3 Closing of unprofitable model display sites ▲4
19

2
Sales

Results by Segment (5) Beauty and Health ①(Millions of yen)
※ We changed the name from “Mail-order’ to “Beauty and Health”.

4000

BELAIR
3000※① It includes internal transactions about 6 millions yen.

※② It includes internal transactions about 6 millions yen.

Beauty and Health2,528※ ① 2,557

148※ ② 2,277

109

2000

2,528
1000

2,408

2,168

0
FY2016 Q1

FY2017 Q1

FY2018 Q1≫ The mainstay Macchia Label brand increased new customers, but sales decreased year on year resulting fromdecreases in sales per customers.
≫ The Coyori brand of skin and hair care products that is made from natural ingredients declined sales year on
year because of a slowdown in the repeat rate and the number of new customers.
(Millions of yen)

Operating 0
Income-100

Operating income
FY2016 Q1▲50

FY2017 Q1

FY2018 Q1

-200

▲202

-300

▲266

This segment includes Amortization of
goodwill at 141 million yen related to JIMOS
and BELAIR.

-400≫ Operating income improved year on year because of the proper operation of investments in advertising andpromotion.

20

Results by Segment（５） Beauty and Health

2

Sales

（Millions of yen）②

Operating income(Millions of yen)

4,000

800
2,993

3,000

2,528

2,493

2,447

2,547

2,795
2,395

600
2,376

2,277

2,000

400
233

213
1,000

200

184

206
▲ 89

0

0
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1
▲ 50

!(1,000!)
▲ 266

▲ 215

!(2,000!)
FY2016▲ 202

FY2017

▲ 200

▲ 400
FY2018≫ Sales and operating income generally are tilted toward the second half of the year due to aggressive investment inadvertising and promotions the first half of the year.
≫ Operating income is expected bellow zero resulting from amortization of goodwill .
21

3. FY2018 Forecasts of Financial Results

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

FY2018 Forecasts of Financial Results

3■ 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 theconsumption 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

Crecla⇒ Enhance bland throughConstruction Consulting[ Know-how business ]⇒ Supply products to meet a wide

⇒ Strengthen sales promotion
regarding ZEH andtermination of national policy

improvement of customer
services
variety of customer needs⇒ Delivery at nighttime andholiday[ Construction materials ]⇒ Strengthen coordination with
Know-how business

Beauty-health
Acquire new customers⇒ Expand targets and form abusiness tie-up withdifferent type of business⇒ Tap into overseas markets

24

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％

Beauty-health

10,1159,800▲ 3.1％

Elimination

▲ 59

-

-

Total

89,81896,500+ 7.4％

25

3

FY2018 Operating income Forecasts by Segment（Million of yen）

OperatingincomeResultFY 2017Plan
FY 2018

Comparison

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)

Beauty-health147(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.

26

4. Medium-Term Strategy/ Plan of Dividends

27

事業報告
＞ 今期の施策Strateg＞ 第46期の見通し＞ 中期経営計画
4
Medium-Term

Regarding the medium-term strategy for fiscal

2020, we are reviewing the current plans.

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

（Yen）
40

Payment amount of Dividends

30

26

19

20

19

19

18

8

10

8

0
-

FY2015Interim

Dividends per
share

FY2016Year-end

38 yenInterim

FY2017Year-end

27 yenInterimYear-end

FY2018 (Plan)
Interim

18 yenYear-end

34 yen≫ Our dividend policy is DOE 4%. In accordance with this dividend policy, annual dividend is 34 yen in FY2018.

≫ Our dividend policy is “Interim” with “Year-end” in a ratio of 1 to 3 from FY2018.
29

5. Appendix

30

5Company's outline（As of the end of March 2018）

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）■ Beauty-health (Cosmetics and health food Beauty-health sales)

Consolidated
companies

Leohouse Co., Ltd.（Housing sales）
Earnest Corporation（Building maintenance）
JIMOS Co., Ltd. （Beauty-health）
BELAIR Co., Ltd. (Beauty-health)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

2,169(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)31

5

Key Financial Indicators（Consolidated）
FY2016FY2017

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

Average number ofshares during the period

Ratio of dividends toshareholder’s equity

Comparison

325Company 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.

Apr. 2018

Absorption-type merger of AI LIFE Co., Ltd.
33

5

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.
■ Absorption merger AI LIFE Co., Ltd.

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’s satisfaction 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

Beauty and
Health■ In July 2013, the Beauty and Health 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 their 40-60’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 department34

5FY2017 Sales and Operating income Breakdown
CreClaRentalConstruction Consulting

CreClaRentalBeauty and Health

Beauty and Health

Construction Consulting

Housing Sales

Housing Sales

CreClaConstruction
Consulting

15%

CreCla21％

28％
RentalHousing
Sales

Sales

53%

15%

89,818 million

Beauty and Health5％

Operatingincome1,637 million
Housing
Sales

Beauty and Health
Construction
通販
Consulting

11%
6%

Rental72％▲26％※except HQ-costs

Operating margin on sales
CreClaRentalConstruction
Consulting

Beautyand
Health

Housing
sales

Total

4.5%

14.7%

14.4%

1.5％

▲1.6%

1.8%
35

5

Operating income trend by segment（Million of yen）

Invested for
expanding market

2,000
1,500

Accelerated
store openings

2,500
2,000

1,858

1,208

1,500

1,000
500

3,003
2,686

3,000

2,500

【Housing sales】（Million of yen）

【CreCla】-175 -413 -610 -213

198

400

529 576184-60 -78375

143 -201274

506 405

1,000
500

0

0

-500

-500

-1,000-1,000-1,500389 235-19-273 -110

509

388

-1,317-661-412 622 736

160-1,500（Million of yen）

【Beauty and Health】

1,000

Actively
advertising
investment

500

147

80

-199-222 -105-457

0

-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 theConstruction Consulting Business, which show stable business performance.
36