Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

November 8, 2023

Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Under Japanese GAAP)
Company name:
NAC Co., Ltd
Listing:
Tokyo Stock Exchange
Securities code:
9788
URL:
https://www.nacoo.com/
Representative:
Kan Yoshimura, President and Chief Executive Officer
Inquiries:
Hironari Kawakami, Director and Chief Financial Officer
Telephone:+81-03-3346-2111Scheduled date to file quarterly securities report:
November 8, 2023
Scheduled date to commence dividend payments:
December 4, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to
September 30, 2023)(Percentages indicate year-on-year changes.)(1) Consolidated operating results (cumulative)
Net sales
Six months ended

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2023

25,828

(1.0)

609

10.4

689

21.8

280

10.3

September 30, 2022

26,097(0.4)

552(46.6)

566(44.9)

254(58.5)

Note: Comprehensive income

For the six months ended September 30, 2023:
For the six months ended September 30, 2022:

Basic earnings
per share
Six months ended¥229 million¥148 million[54.8%][(83.4)%]

Diluted earnings
per share
YenYenSeptember 30, 2023

12.93－

September 30, 2022

11.34－(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Net asset per share

Millions of yen

Millions of yen

September 30, 2023

37,644

21,82258.0

1,014.32

March 31, 2023

38,73523,20459.9

1,032.62

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:¥21,822 million¥23,204 million%Yen2. Cash dividends
Annual dividends per shareFirst quarter-end
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen－

10.00

－

30.00

40.00

－

10.00
－

32.00

42.00

Fiscal year ending
March 31, 2024
(Forecast)Fiscal year-end

Total

Note: Revisions to the forecast of cash dividends most recently announced: None

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

23,306,750 shares

As of March 31, 2023

24,306,750 shares(ii) Number of treasury shares at the end of the periodAs of September 30, 2023

1,792,100 shares

As of March 31, 2023

1,835,341 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear)
Six months ended September 30, 2023

21,732,676 shares

Six months ended September 30, 2022

22,451,414 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forecasts given in this document are based on the current available information in the company and certain
reasonable assumptions to the company. And we don’t commit to achieve these forecasting numbers. Actual results
may differ from these forecasts by a variety of reasons.
3. Forecast of Consolidated Results for Fiscal Year Ending March 31,2024 （April 1, 2023 ～ March 31, 2024）（Percentages indicate the rate of change compared with the preceding year）
Net Sales

Full-year

Operating income

Profit Attributable toOwners of Parent

Ordinary Income

Net income per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

60,0005.1

3,500

8.3

3,500

7.9

2,200

9.9

97.95

Note: Revisions to the forecast of financial results most recently announced: None

4．Qualitative Information on Earnings Results for the First Six Months【Operating Results】
During the first six months (April 1, 2023 ~ September 30, 2023), the Japanese economy is showing signsof recovery as restrictions of movements towards infectious disease are lifted and economic activities arenormalizing. However, the outlook remains uncertain due to the soaring raw materials and energy prices,and rising commodity prices caused by the protracted situation in Ukraine and other factors, as well as
fluctuations in foreign exchange rates.
In retail and service industries, the individual consumption is in recovery trend.
The employment situation is showing signs of improvement due to increases in salaries, and consumption
trends are also showing signs of recovery, especially in face-to-face services such as eating out and travel.
Under these circumstances, NAC Group has actively worked to improve customer service, conduct sales
promotions, expand its trade area, and reorganize its business in anticipation of increasing demand in the
100-year life period.
As a result, net sales of 25,828 million yen (decrease of 1.0% year-on-year), operating income of 609 million
yen (increase of 10.4% year-on-year), ordinary income of 689 million yen (increase of 21.8% year-on-year)
and profit attributable to owners of parent company of 280 million yen (increase of 10.3% year-on-year)
were the consolidated for the second quarter of the fiscal year ending March 31, 2024.
Segment results by business are as follows:In addition to the operating profit of each segment, 705 million yen as corporate expenses not attributable
to any particular segment were posted.
〈CreCla Business〉
In water delivery market, competition for customers has become even more fierce due to the increasing
demand for water purifier type servers that can be used at a fixed and low price. In addition, bottle
consumption per unit is on a downward trend with existing customers refraining from buying bottles due tothe soaring prices and decreasing stay-at-home demand.
In CreCla Business, in response to the growing demand for water purifier servers, we have launched a newcompact water purifier server “putio” for those living alone and for the elderly. We also strengthened sales
event at shopping malls and worked to strengthen sales promotion activities.
In Directly managed stores division, although the number of customers has declined compared to year-onyear in CreCla water delivery due to customers refraining from purchasing because of rising prices and entryof major companies, the cancellation rate is on improving trend. Moreover, sales increased year-on-year dueto the increase in customer unit prices following a high demand for water because of intense heat, as well as
due to the impact of price increase of CreCla bottles implemented the previous year. As for the hypochlorousacid solution “ZiACO”, due to the reclassification of the infectious disease as Class 5, cancellation ofcustomer who used it as anti-virus solution has increased which resulted a decrease in sales year-on-year. As
a result, overall sales in Directly managed stores division increased year-on-year as high sales of CreClabottles covered the sales decline in ZiACO.
In Affiliated stores, although the number of customers decreased, net sales increased compared to year-onyear following the high bottle sales due to price increase implemented the previous year.
The operating profit increased year-on-year due to the increase in net sales because of price increase andimpact of intense heat.
As a result, net sales of 7,762 million yen (increase of 4.6% year-on-year), operating profit of 910 million
yen (increase of 28.2%) were the consolidated result for the second quarter of the fiscal year ending March31, 2024.
In addition, CreCla Nagasaki Co., Ltd was established in March 2023 and consolidated statement is recorded
from the first quarter of the current fiscal year (has no significant impact).
〈Rental Business〉
In Rental Business, we provided products and services that fits the demands and lifestyle of cleanlinessmarket, which has changed due to the infectious disease. Furthermore, for the 100-year lifespan era, we
anticipated an increase in demand for services such as housekeeping and nursing care equipment rental, andhas worked to expand our sales network and strengthen our service system.
In the mainstay Duskin business, net sales have decreased in Dust control product division as a result ofincrease in cancellation rate from reviewing household finances because of high prices of commodities. On
the other hand, in addition to the continuously increasing businesses (sales activities were expanded byincreasing sales staff after the capital and business alliance agreement with Duskin Co., Ltd in August 2018)
in Care services division that provides comprehensive services such as housekeeping services, pest control,and floral and garden management, and in HealthRent division that provides rental and sales of nursing care

products and welfare equipment, net sales increased year-on-year due to an increase in orders for cleaningin Care services division following the rising demand for air conditioners because of intense heat.
In With-branded pest-control devices “with”, net sales were at the same level (slightly increased) year-onyear due to the improved delivery rates to restaurants, our major customers, and strengthening of sales
promotion activities aimed at acquiring new customers.
In Earnest Co., Ltd, which provides regular cleaning services for corporate clients, net sales decreased yearon-year due to the decline in orders of Border Control Support projects by MHLW because of the impact ofinfectious disease’s reclassification to Class 5.
In addition, CAN’S Co., Ltd, a restoration work business for rental properties became a subsidiary in June
2023 and income statement is recorded in the second quarter of the current consolidate fiscal year.
Although net sales in Duskin business, With-branded pest-control devices business had increased, operating
income decreased year-on-year due to the impact of decline in net sales of Earnest Co., Ltd.
As a result, net sales of 8,711 million yen (1.1% increase year-on-year), operating profit of 807 million yen(decrease of 8.7% year-on-year, including the 3 million yen goodwill amortization of CAN’S Co., Ltd) werethe consolidated result for second quarter of the fiscal year ending March 31, 2024.
〈Construction Consulting Business〉
The local construction industry and market became a severe external environment due to the decrease inresidential construction because of population decline, chronic shortage of skilled personnels and surge inbuilding materials.
In Consulting division, due to the prolonged surge of construction costs, and repayment of infectious disease
related loans, the investment appetite related to economic improvement of local constructing contractors,
that are our customers has continuously declined. In addition, the sales ratio of the subsidized products forthe purpose of supporting IT introduction in the second quarter consolidated fiscal year continued on fromthe first quarter has increased. Net sales decreased year-on-year as net sales of the orders in the second quarter
will be recorded from the third quarter due to the time required to complete the review from application ofthe subsidized products.
At NAC HAUS Partner Co., Ltd, which was renamed on April 1, 2023 when ACE HOME Co., Ltd absorbed
and merged with Nac Smart Energy Co., Ltd, the Smart Energy Business (formerly Nac Smart Energy Co.,Ltd) which engages in construction and sales of materials related to energy savings has incurred an increasein net sales year-on-year due to the convergence of product supply delays caused by semiconductor shortages,and stabilization of supply volumes, as well as improved sales of materials.
In Housing Network business (formerly ACE HOME Co., Ltd), net sales decreased year-on-year due todecline in parts sales following the decrease of houses built and due to the time required to complete thereview from application subsidized products jointly developed with Consulting division.
The gross profit margin improved as we shifted from focusing on wholesale to sales structure including thework contracts continued from the previous fiscal year in Smart Energy business of NAC HAUS Partner Co.,
Ltd. However, due to the decline in sales of Consulting Business, a high profit margin, the loss of the entire
Construction Consulting business has expanded significantly.
As a result, net sales of 2,637 million yen (decrease of 10.9% year-on-year), operating loss of 204 million
yen (operating loss of 58 million yen in the same period of the previous fiscal year, including the 20 million
yen goodwill amortization of NAC HAUS Partner Co., Ltd) were the consolidated result for the second
quarter of the fiscal year ending March 31, 2024.
〈Housing Business〉
In the Housing industry, the situation remains severe with the number of new housings announced by theMinistry of Land, Infrastructure, Transport and Tourism (MLIT) in September for total housing including
rental houses and ready-built houses has declined for four months, and the number of owned houses in ourbusiness area has decreased for 22 consecutive months.
In KDI Corporation, net sales decreased year-on-year as number of units sold was sluggish following thesoaring house prices and slowdown of the entire real estate market due to the impact of the rising land pricesand building materials in the city center.
In J-wood Co., Ltd, despite a rise in unit sales per building and an increase in sales of real estate for sale, thenumber of completed buildings declined which resulted a decrease in net sales year-on-year.
Operating income decreased significantly due to the rise in purchase costs for land price and materials, andthe decrease in the number of units sold at KDI Corporation. In J-wood Co., Ltd the unit sales price and grossprofit margin improved by passing on the increase in building materials to sales price and covered thedecrease in sales, but operating loss is on the same level year-on-year. Although there was an improvementin the profitability for J-wood Co., Ltd, operating loss in the entire Housing business expanded year-on-year
due to the deterioration of profits in KDI Corporation.

As a result, net sales of 3,482 million yen (decrease of 11.4% year-on-year), operating loss of 245 million
yen (operating loss of 197 million yen in the same period of the previous fiscal year, including the 7 million
yen goodwill amortization of KDI Corporation) were the consolidated results for the second quarter of thefiscal year March 31, 2024.
〈Beauty and Health Business〉
In the cosmetics industry, in addition to the transition of infectious disease to Class 5, more people took off
their masks to prevent heat stroke that increased demand for make-up, anti-aging skincare and other skincare
products. In addition, inbound consumption of foreigners has also increased, and there were signs of recovery
in the entire industry.
In JIMOS Co., Ltd, which focuses on mail-order of cosmetics and health food products, sales increased yearon-year due to growth of SINN PURETÉ brand and acquisition of new customers of MACCHIA LABEL
brand which made steady progress.
BELAIR Co., Ltd, which is engaged in the sales of nutritional supplements, net sales decreased year-on-year
due to a decline in membership.
UP SALE Co., Ltd, a company handling mail-order of cosmetics, health food and pharmaceutical, net sales
decreased because of the decline in sales volume due to intensified price competition in online shop sales andinefficiency in acquiring new customers in pharmaceutical sales.
In TOREMY Co., Ltd which focuses on contract manufacturing of cosmetics, in addition to the increase insales from existing customers following the recovery of cosmetics market, due to new orders from major
sales destinations and orders from inbound demand, sales increased year-on-year.
Although a loss was recorded at UP SALE Co., Ltd due to deterioration of profitability because of decline insales, overall operating income in Beauty and Health business increased year-on-year due to higher sales in
JIMOS Co., Ltd and TOREMY Co., Ltd, as well as contribution of cost control and office sharing.
As a result, sales of 3,261 million yen (increase of 2.4% year-on-year), operating income of 46 million yen(operating loss of 75 million yen in the same period of the previous fiscal year, including the 89 million yen
goodwill amortization of JIMOS Co., Ltd, BELAIR Co., Ltd, and TOREMY Co., Ltd) were the consolidated
results for the second quarter of the fiscal year ending March 31, 2024.