Results for the six months ended
September 30, 2018【 Reference 】

November 9th, 2018

NAC Co., Ltd.

Code; 9788 TSE 2nd section

Translation

In case of any inconsistency between the Japaneseversion and the English version, the Japanese version
shall prevail.

Topics
1. Results for the six months
ended September 30, 2018

…

P. 2

2. Results by Segments

…

P. 10

3. FY2018 Forecasts of Financial Results… P. 23

4. Plan of Dividends

…

P. 27

5. Appendix

…

P. 29

This document contains certain forward-looking statements including the NAC groupof companies’ sales and contract targets based on information available to us as ofthe date of release. These statements are subject to a number of risks anduncertainties such as economic and business conditions as well as the outcomes of
new services.
Therefore, please understand that actual future results may differ from the forwardlooking statements.

11. Results for the six months ended
September 30, 20182

1

Consolidated Income Statement（Millions of yen）

Plan Comparison
6 months
ended FY2018

YoY Comparison

Actual/Plan
ComparisonPlan

6 months
ended FY2017

YoY
Comparison

Sales37,83540,50093.4 %

38,148▲ 0.8 %

Gross profit

15,748--15,775▲ 0.2 %

（Gross margin）

41.6 %--

41.4 %+ 0.2 pt

SG&A

16,952--

17,337▲ 2.2 %

Operating Income▲ 1,204▲ 1,550-▲ 1,561-（Operating margin）▲ 3.2 ％

▲ 3.8 ％-

▲ 4.1 ％

+ 0.9 pt

Non-operating
income and loss

▲ 16

-

-

▲ 14

-

Ordinary Income▲ 1,220▲ 1,550-▲ 1,576-

Extra-ordinary
income and loss

▲ 10

-

-

▲ 180

-

▲ 999

▲ 1,400-▲ 1,429-

Net income attributableto owners of parent company≫ 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（Million of yen）

Sales

70,000

Sales（Million of yen）

Operating Income

7,000

6,000

60,00051,54051,6695,000

50,0004,000
40,00038,14837,83534,361

3,000

3,403
30,000

2,000

3,199

1,000

20,0000
10,0000▲ 1,204▲ 1,561▲ 1,000▲ 2,272▲ 2,000
FY2016FY2017FY2018▲ 10,000▲ 3,000
Q1-2

Q3-4

Q1-2

Q3-4

Q1-2

Q3-4

≫ Nac group of companies tend to post an operating income in the second half of the year because hand-overin Housing sales usually concentrates between 3rd and 4th quarters.
4

1

Sales by Segment（Millions of yen）

Plan Comparison
6 months
ended FY2018

Plan

YoY Comparison

Actual/Plan
Comparison

6 months
ended
FY2017

YoY
Comparison

CreCla

6,925

7,000

▲ 75

6,678

+ 246

Rental

7,145

6,900

+ 245

6,783

+ 361

Construction
Consulting

2,427

2,700

▲ 273

2,558

▲ 131

Housing Sales

16,86019,300▲ 2,440

17,216▲ 355

Beauty and Health

4,494

4,600

▲ 106

4,943

▲ 449

Elimination

▲ 17

-

▲ 17

▲ 31

+ 14

Total

37,83540,500▲ 2,665

38,148▲ 313≫ In the CreCla Business, sales increased year on year since record-setting heatwave this summer increased bottle consumption
per customer.
≫ The Rental business exceeded the planed target and previous year because all segments improved business performances.
≫ In the Construction Consulting, sales decreased year on year and fell short of planed target due to sales decreases in theconstruction materials business.

≫ In the Housing sales business, sales were below year on year and the planned target because of decreased in hand as of the endof the previous fiscal year in Leohouse and J-wood.
≫ In the Beauty and Health business, the number of new customers increased in both “Macchia Label” and “Coyori” brands ;however, sales declined year on year and fell short of the planned target because of the slowdown in the repeat rate anddecreases in sales per customers.
5

Operating income by Segments

1（Millions of yen）

Plan Comparison
6 months
ended FY2018

Plan

YoY Comparison

Actual/Plan
Comparison

6 months
ended FY2017

YoY
Comparison

CreCla458(6.6 %)

280(4.0 %)+ 178(+ 2.6 pt)

131(2.0 %)+ 327(+ 4.7 pt)

Rental946(13.3 %)

890
(12.9 %)

+ 56(+ 0.4 pt)

928(13.7 %)

+ 18(▲ 0.4 pt)

Construction
Consulting

197(8.1 %)

250(9.3 %)▲ 52(▲ 1.1 pt)

239(9.4 %)▲ 41(▲ 1.2 pt)

Housing Sales▲ 2,195(▲ 13.0 %)▲ 1,910(▲ 9.9 %)▲ 285(▲ 3.1 pt)▲ 1,974(▲ 11.5 %)▲ 220(▲ 1.6 pt)

Beauty and Health▲ 99(▲ 2.2 %)▲ 250(▲ 5.4 %)+ 150(+ 3.2 pt)▲ 291(▲ 5.9 %)+ 192(+ 3.7 pt)

▲ 512

▲ 810

+ 297

▲ 594

+ 81

▲ 1,204(▲ 3.2 %)▲ 1,550(▲ 3.8 %)+ 346(+ 0.6 pt)▲ 1,562(▲ 4.0 %)+ 357(+ 0.9 pt)

Elimination,
HQ Cost
Total
Note)

≫

The figures inside ( ) marks indicate operating margin.

In the CreCla business, operating income exceeded the planed target and previous year thanks to sales increases in both direct managed andaffiliated stores and reducing the sales promotion expenses.
≫ The Rental business increased operating income year on year and the planed target owing to sales remained steady in all sections.
≫ In the Construction Consulting business, operating income decreased year on year owing to decline in sales of the construction materials
business and increase in selling, general, and administrative expenses related to promoting new products in the construction know-how
systems.
≫ In the Housing sales business, operating income decreased compared with last year, due to sales dropped and the construction costs rose
affected by the lack of craftspeople..
≫ In the Beauty and Health business, operating income rose year on year due to revisions to sales promotion costs and advertising expenses. 6

1Analysis for operating income & loss (YoY change)（Millions of yen）

Comparison

FY2017 Q2

Operating Income▲ 1561-▲ 27+ 0.3%

Depreciation and Amortization＋ 126+ 15.2％

Sales promotion costs and Advertising Exp.

+ 125

▲ 4.8%

Rent+ 70+ 15.6％

Personnel expenses+6+ 13.8%Commission paid

▲ 14

▲ 6.9%

Others+ 70+ 1.2％▲ 1,204-

1. Gross profit

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

FY2018 Q2 Operating Income
1. The reason of decrease of Gross profit margina≫ Sales in Leohouse declined year on year owing to the delay of the construction and delivery caused by natural disasters
including the torrential rain in western Japan, typhoons, earthquakes.

2. The reason of increases and decreases of SG&A
≫ Depreciation and Amortization decreased because Leohouse closed unprofitable branches.
≫ Sales promotion costs and Advertising expenditures declined since CreCla and Beauty and Health suppressed them.
71

Consolidated Balance Sheet
As of Sep.
2018
Current assets

Break
down

（Millions of yen）

As of Mar.
2018

Break
down

Comparison

28,08259.8 %

22,98054.6 %+ 5,102

Total property, plant andequipment

11,88925.3 %

12,57929.9 %▲ 689

Intangible assets

2,398

5.1 %

2,782

6.6 %

▲ 384

Investments and otherassets

4,398

9.4 %

3,773

9.0 %

+ 624

Non-current assets

18,68539.8 %

19,13545.4 %▲ 450

Total deferred assets

162

0.3 %

-

-

+ 162

Total assets

46,930100.0 %

42,115100.0 %

+ 4,814

Current liabilities

21,48645.8 %

20,97349.8 %+ 513

Non-current liabilities

6,869

14.6 %

7,027

16.7 %▲ 158

Total liabilities

28,35660.4 %

28,00166.5 %+ 355

Shareholder’s equity

19,33341.2 %

14,87335.3 %+ 4,459

Accumulated othercomprehensive income▲ 758▲ 1.6 %

▲ 758

▲ 1.8 %

▲0

Total net assets

18,57439.6 %

14,11433.5 %+ 4,459

Total liabilities and net assets

46,930100.0 %

42,115100.0 %

+ 4,814■ Current assets ： Cash and deposits + 2,636 Costs on uncompleted construction contracts + 1,996■ Non-current assets ： Building and structures ▲ 402 Goodwill ▲ 254■ Current liabilities ：Advances received on uncompleted construction contracts + 3,514 Accounts payable ▲ 2,315■ Non-current liabilities ： Lease obligations ▲ 306
Equity Ratio ： 39.6 ％81

Consolidated Cash Flow
（Millions of yen）

1st half of
FY2018
1.Net cash provided by operating
activities
2.Net cash used in investing activities
3.Net cash used in financing activities
Net increases cash and cash equivalents
Cash and cash equivalents
at beginning of period

Cash with the new connection and cash
equal accrualCash and cash equivalents
at end of period
Depreciation and amortization

1st half of
FY2017FY2017▲ 2,476▲ 3,117

1,152

▲ 170

▲ 688

▲ 905

5,283

1,221

▲ 473

2,636

▲ 2,584

▲ 225

7,261

7,430

7,430

-

56

56

9,898

4,903

7,261

782

889

1,783

The main reasons of the fluctuation■ Operating activities：An increase in Advances received on uncompleted construction contracts at 3,514 millions of yen.
An increase in depreciation at 782 millions of yen
An increase in inventory at 3,112 millions of yen
A decrease in accounts payable at 2,315 millions of yen / Net loss at 1,231 millions of yen■ Investing activities： Payments of loans receivable at 63 millions of yen
Purchase of intangible assets at 62 millions of yen■ Financing activities：Proceeds from issuance of common stock at 5,291 millions of yen

92. Results by Segments

10

2

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

Sales

Directly managed

10,000
8,000
6,000

6,858

6,678

6,925

2,565

2,346

2,360

4,292

4,331

4,565

FY2016 Q1-Q2

FY2017 Q1-Q2

FY2018 Q1-Q2

4,000

2,000
0

≫ Our direct managed stores tried to improve customer retention rate through enrich the content
a of customer services. As a result, sales increased year on year.
≫ In affiliates, sales increased year on year since sales of water servers and bottled wateraa remained steady.

（Millions of yen）

1,500

Operating
IncomeOperating Income
458

1,000

500

14

131

0
FY2016 Q1-Q2

FY2017 Q1-Q2

FY2018 Q1-Q2≫ Operating income exceeded previous year since we suppressed sales promotion expenses .

11

Results by Segment (1) CreCla

2（Million of yen）

（Million of yen）

10,000

Sales

1,000

Sales

Opataring Income

8,000

800
6,858

6,435

6,678

6,480

6,925

6,000

600
464

458

4,000

400
259

131

2,000

200

14
-

0
FY2016
Q1-2

Q3-4

FY2018FY2017
Q1-2

Q3-4

Q1-2

Q3-4

≫ Operating income exceeded previous year since we suppressed sales promotion expenses .

12

2

Results by Segment (2) Rental（Millions of yen）※① It includes internal transactions about 2 millions yen.

Earnest10,000

Sales

8,000
6,000

with

Duskin

6,455
639
1,173

6,783
694
1,229

7,145
687
1,248

4,643

4,859

5,209

FY2016 Q1-2

FY2017 Q1-2

FY2018 Q1-2

4,000
2,000
0

≫ The Duskin business focused on existing customers to improve customer satisfaction. Moreover, we
opened a new store to expand business areas. Consequently, the number of customers and contract
termination rates held steady, so sales increased year on year.
≫ With-branded pest-control devices business strengthened sales promotions before the summer peakdemand season in both our directly managed stores and affiliated stores. As a result, sales rose year on
year.

≫ Earnest that provides regular cleaning service for business was about the same level year on year in sales.

（Millions of yen）

Operating
IncomeOperating Income

1,500
1,200
900

824

928

964
This segment includes

600

Amortization of goodwill300

at 0.2 million yen related to AI LIFE.

0
FY2016 Q1-2

FY2017 Q1-2

FY2018 Q1-2

≫ Operating income increased year on year owing to sales remained steady in all sections.
13

Results by Segment (2) Rental

2(Millions of yen)

Sales

Sales

（Millions of yen）

Operating Income

10,000

2,000

8,000
6,455
6,000

6,679

6,783

1,029

928

6,943

1,600

7,145

1,092

1,200

946

824
4,000

800

2,000

400

-

FY2016
Q1-2

FY2017
Q3-4

Q1-2

FY2018
Q3-4

Q1-2

Q3-4

≫ Operating income increased year on year owing to sales remained steady in all sections.

14

2

Results by Segment (3) Construction Consulting(Millions of yen)※① It includes internal transactions about 75 millions yen.

5,000

Sales

Eco＆Eco※② It includes internal transactions about 93 millions yen.
※③ It includes internal transactions about 87 millions yen.

Construction materials

Know-how system

4,000※① 2,715

3,000※② 2,651
273※③ 2,515
315

1,096

1,358

1,194

983

1,019

1,005

FY2016 Q-1-2

FY2017 Q-1-2

FY2018 Q-1-2

634

2,000

1,000
0
≫ The construction know-how systems was at the same level year on year in sales.
≫ The construction materials business sales decreased year on year owning to the delay in delivery of commodities,
which was affected by Revised-FIT and natural disasters including the torrential rain in western Japan.
≫ Eco & Eco have conducted an overhaul of income structure, sales promotions and process management to generate
stable profits, so we have successfully changed its business model, and therefore the sales increased.
(Millions of yen)

1,000

Operating
IncomeOperating Income

800
600
400

234

239

197

FY2016 Q1-2

FY2017 Q1-2

FY2018 Q1-2

200
0

≫ Operating income decreased year on year due to decreased in sales of the construction materials business and increase in
selling, general, and administrative expenses related to promoting new products in the construction know-how systems.
15

Results by Segment (3) Construction Consulting

2(Millions of yen)

(Millions of yen)

Sales

5,000

Sales

Operating Income

2,000

4,000

1,600
3,449

3,000

2,825

2,640

2,558

1,200
2,427

722

2,000

800
536

1,000

239

234

400

197

-

-

FY2016
Q1-2

Q3-4

FY2017
Q1-2

Q3-4

FY2018
Q1-2

Q3-4≫ Operating income decreased year on year due to decreased in sales of the construction materials business andincrease in selling, general, and administrative expenses related to promoting new products in the construction
know-how systems.

16

Results by Segment (4) Housing Sales

2※① It includes internal transactions about 6 millions yen.
(Millions of yen)

【 Suburban areas 】※③ It includes internal transactions about 308 millions yen.

suzukuriJ-woodSales※② It includes internal transactions about 110 millions yen.

Kunimokuhose
Leohouse（suburban areas）

20,000※① 13,388707※② 17,326
351
2,092

KDI
Leohouse（urban areas）※③ 17,167
651 392

2,023

2,970
1,592

9,956

11,383

9,343

1,270

1,474

2,219

FY2016 Q1-2

FY2017 Q1-2

FY2018 Q1-2

1,453

Others【 Urban areas 】
Tokyo Kanagawa
Chiba Saitama

10,0000≫ In the Housing sales business, sales have declined year on year because of decreases in hand as ofthe end of the previous fiscal year in Leohouse and J-wood.
500(Millions of yen)

Operating
Income ▲ 500

FY2016 Q1-2

FY2017 Q1-2
Operating Income

FY2018 Q1-2
This segment includes
the Amortization of goodwill at 49 million yen
related to to J-wood, KDI andKUNIMOKUHOUSE.

▲ 1,500▲ 1,974▲ 2,214▲ 2,195▲ 2,500≫ Operating income also decreased year on year due to decreases in sales and the rise in construction costs thata was affected by the lack of craftspeople.
17

Results by Segment (4) Housing Sales

2(Millions of yen)

Sales

Sales

Operating Income(Millions of yen)

40,0007,000
30,27629,54830,0005,000
17,21620,0003,000

16,68013,388

1,238

1,591

10,0001,000

0▲ 2,214

Q1-2▲ 2,195

FY2017FY2016▲ 10,000▲ 1,000▲ 1,974

Q3-4

Q1-2

Q3-4

FY2018Q1-2

Q3-4▲ 3,000≫ Sales and Operating income tend to increase around Q4.
≫ Operating income fell in comparison with last year due to sales decreased year on year.

18

2 Results by Segment (4) Housing Sales
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 Sep.30, 2018 ）in the first half of the year

in the first half of the year

KDI

J-woodKUNIMOKU HOUSE（ As of Sep.30, 2018 ）（ As of Sep.30, 2018 ）（ As of Sep.30, 2018 ）SuzukuriSuzukuri opened a new store（ As of Sep.30, 2018 ）in the first half of the year

Hokkaido

Leohouse：
88 stores ( Branch : 41 / Model display site : 41 / Others : 6 )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

Aomori19

2

Results by Segment (4) Housing Sales

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

Q2

Numberof Orders

457

677

397

550

439

542

419

489

470

537

Comple
tions

186

390

403

871

188

478

396

834

156

427

Ordersin hand

1,114

1,385

1,361

1,016

1,245

1,294

1,309

944

1,233

1,317

Change

+ 253

+ 271

▲ 24

▲ 345

+ 229

+ 49

+ 15

▲ 365

+ 289

+ 84

※1

Unit
price

※1

※1

18.49 million yen

18.26 million yen

Q3

Q4

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

Total
stores

2

0

0

0

105

105

105

105

※1

※2

5

0

0

105

105

105

0
※3

101

※1 Closing of model display sites ▲2※2 Brand change to suzukuri ▲5※3 Closing of unprofitable model display sites ▲4※4 Closing of unprofitable model display sites ▲14

※4

1

0

88

88

20

2

Results by Segment（5）Beauty and Health(Millions of yen) ※ Since FY2018, we have renamed the Mail-order business to Beauty and Health business.

Sales

10000

※① It includes internal transactions about 10 millions yen.
※② It includes intersegment transactions about 12 millions yen.
It includes intersegment transactions about 29 millions yen.

Others (BELAIR)

8000

6000

JIMOS

※① 4,943
321

266

5,022

4,632

4,228

FY2016 Q1-2

FY2017 Q1-2

FY2018 Q1-2

4000
2000

※② 4,494

0≫ The mainstay Macchia Label brand increased new customers, but sales decreased year on year resulting from aslowdown in the repeat rate.
≫ The Coyori brand of skin and hair care products that is made from natural ingredients also increased newcustomers, but sales declined year on year because of decreases in sales per customers .

Operating
Income (Millions of yen)100

Operating Income

0

▲ 99

▲ 100
▲ 200

FY2016 Q1-2

▲ 500

FY2018 Q1-2

▲ 291

▲ 300
▲ 400

FY2017 Q1-2

▲481

This segment includes Amortization of
goodwill at 283 million yen related to
JIMOS and BELAIR.

≫ Operating income increased year on year due to reduction in sales promotion costs and advertising expenses.
21

Results by Segment（5）Beauty and Health2(Millions of yen)

(Millions of yen)
8,000

Sales

6,000

5,022

Sales

5,440
4,943

4,000

Operating Income

1,500

5,172

1,000

4,943

439

398

500

▲ 99

2,000

▲ 291
0

▲ 2,000

0▲ 481

FY2016
上期

下期

Q1-2

Q1-2

Q3-4

Q1-2

FY2017

Q3-4

Q3-4

FY2018
Q1-2
Q3-4
Q1-2

▲ 4,000

▲ 500

Q3-4
▲ 1,000≫ Sales and operating income generally are tilted toward the second half of the year due to aggressive investment inaadvertising and promotions in the first half of the year.
≫ Operating income is expected bellow zero because of goodwill amortization.

22

3. FY2018 Forecasts of Financial Results

23

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.

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. Plan of Dividends

27

4

Plan of dividends : Dividend Policy with DOE 4%
Dividend payout ratio is within 100%
（yen）

30
26

20

19

19

10

19

18

8

8

-

FY2015FY2016FY2017FY2018（Ex）

Interim Year-end Interim Year-end Interim Year-end Interim Year-end
Dividends pershare

38 yen27 yen37 yen34 yen28

5. Appendix

29

5Company's outline（As of the end of September 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 and Health (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）

Employees

2,187(consolidated)

Capital stock

6,729,493,750 yen

Number of shares

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

Number ofshareholders

93,41 (Total number of shareholders; treasury shares are excluded)30

5

Key Financial Indicators（Consolidated）
FY2016FY2017

16,854,157 shares

16,807,436 shares▲ 46,721 shares

Net assets per share（BPS）

923.41yen

939.61yen▲ 84.13yen

Net income per share（EPS）

24.65yen▲ 59.15yen▲ 83.79yen

Equity ratio

35.%

33.4%

▲ 2.3pt

Ratio of shareholder’sequity to Net income
（ROE）

2.7%

▲ 6.7％▲ 9.4pt

Dividends per share

27yen

18yen

▲ 9yenDividend 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

31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

Feb. 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. 2014

Opened the CreCla Honjo-Plant

Sep. 2015

Acquired Eco & Eco Co., Ltd.

May. 2016

Acquired KDI Co., Ltd.

May. 2016

Acquired KUNIMOKU HOUSE Co., Ltd.
32

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 Ministryof Health, Labour and Welfare

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

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 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 department33

5FY2017 Sales and Operating income Breakdown
CleClaRentalCleClaRentalBeauty and Health

Construction Consulting

Beauty and Health

Construction Consulting

Housing sales
CreCla

CreClaConstruction
Consulting

15%

21％

28％
RentalHousing Sales

53%

Sales

15%

Beauty and
Health5％89,818 million

Operatingincome1,637 million

Beauty and
Health6%

HousingSales

11%

Rental▲26％

72％

Construction
Consulting※except HQ-costs

Operating margin on sales
CreClaRentalConstruction
Consulting

Beauty and
Health

Housing
Sales

Total

4.5%

14.7%

14.4%

1.5％

▲1.6%

1.8%
34

5

Operating income trend by segment【Housing Sales】（Millions of yen）

3,003
3,000

（Millions of yen）

Invested for
expanding market【CreCla】

2,500

2,500
2,000

1,000

0

198

529 576400-60 -78-175-413 -610-213

184

375

1,858
1,208

1,000

1,500

596
274
143
-201

389 235

500

405

0

-19

-273 -110

509

388

-1,317-412-622-736160-500-1,000-500

Closure of
unprofitablebranches

2,686

1,500

2,000

500

Accelerated
store openings-661-1,500-1,000（Millions of yen）

-1,500

Actively
advertising
investment

1,000【Beauty and Health】
500

-199

-222 -105-457

147 800-500（Millions of yen）
2,500
2,000
1,500

1,000

（Millions of yen）

【Rental】
1,999
1,500 1,580 1,492 1,392

1,321

1,445

1,654

1,802
1,535 1,582

2,021 2,000
1,841 1,853

1,738
1,505

【Construction Consulting】

2,500
1,501

2,000

1,564

1,767
1,616

1,146

1,500
1,000

500

500

0

0

-500

-500

-1,000-1,000-1,500-1,500915
508

976 900

937
619

425

543

670

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