1. Qualitative Information Concerning Consolidated Business Results(1) Information about operating results
During the fiscal year ended March 31, 2021 (fiscal 2020), the Japanese economy was
still in a severe situation due to the by the Coronavirus disease 2019 (COVID-19).
In the retail and service industries, our core operating domain, personal consumption
continued to decline sharply, but recovered slightly after Japanese government lifted
the state of emergency.
Under the circumstance, the NAC Group of companies aggressively worked ondevelopment of new products, promotion of new services, improvement of customer
satisfaction, expansion of business areas and business restructuring.
Consequently, consolidated results for the fiscal year under review included sales of
55,513 million yen (down 37.1% year on year), operating income of 2,782 million yen(up 31.4% year on year) and ordinary income of 1,548 million yen (up 27.9% year onyear). Profit attributable to owners of parent company was 1,837 million yen (comparedwith a profit of 514 million yen a year earlier).
As for non-consolidated operating results, NAC CO., LTD. recorded net sales of 33,227
million yen (up 7.0% year on year), an operating income of 2,564 million yen, (up 7.0%year on year), an ordinary income of 2,447 million yen, (down 22.7% year on year), anda net income of 715 million yen, (down 55.0% year on year).
Operating results by business segments were as follows.
In addition to the operating income or loss of each segment, the NAC Group ofcompanies posted 1,183 million yen as corporate expenses not attributable to any
particular segment.
[CreCla Business (Bottled Water)]
While the increase in teleworkers made it difficult to sell to corporate customers, themarket expanded as a result of increased water usage for household customers.
We have improved the unit price per customer through increasing the price of thebottled water since January 2020. While aggressive face-to-face sales are sluggish dueto the effects of COVID-19, we worked to reduce the churn rate and increase thenumber of customers by strengthening sales promotion through the Web, improving
service quality and establishing a customer referral system.
In our direct managed stores, while the demand for corporate customers decreased, thedemand for household customers increased due to the increase in time spent at home,
therefore sales increased year on year.

In our affiliated stores, sales increased year on year due to the rise in water server
sales and the bottle price hike.
In addition, sales of ZiACO increased in response to the recent increasing demand forsterilization in both our direct managed stores and our affiliated stores.
Operating income increased year on year thanks to increased sales.
As a result, during the fiscal year ended March 31, 2021, the CreCla Business segment
posted sales of 14,481 million yen (up 11.3% year on year), and operating income of
1,627 million yen (up 57.9% year on year).
[Rental Business]
We worked to expand our sales network and service system in order to deal with the
100-year life.
In the mainstay Duskin business, rental sales decreased at dust control products
department. However, we made up for the decrease in the sales through increasing
product sales and increasing sales at care services department (e.g. the housekeeping
service, exterminator and gardener). As a result, the Duskin business increased sales.
In the With-branded pest-control devices business, the main customer, restaurants,
were temporary closed due to COVID-19. Thus, we saw plunge in sales at thisbusiness.
Earnest Co., Ltd., which provides regular cleaning plan for business clients, decreased
sales year on year due to COVID-19.
Operating income decreased year on year, due to a decrease in sales of the highly
profitable With-branded pest-control devices business and increase in SG&A expenses.
Consequently, during the fiscal year ended March 31, 2021, the Rental Businesssegment posted sales of 14,626 million yen (down 1.2% year on year), and operating
income of 1,333 million yen (down 27.7% year on year).
[Construction Consulting Business]
The market remained harsh due to COVID-19, as well as the chronic shortage ofcraftsmen and the decrease in the number of households.
In the construction know-how systems department, we refrained from holding sales
seminar during state of emergency. On the other hand, sales of online packaged
products, which are in demand for sales activities of construction shops, were strong.
Thus, we increased sales year on year.
Nac Smart Energy Co., Ltd. (name changed from Eco & Eco Co., Ltd. from the firstquarter of the current consolidated cumulative period), which handles the construction

of materials related to energy saving, decreased sales year on year since constructions
have partially delayed due to COVID-19.
From the first quarter of the current consolidated cumulative period, Suzukuri Co.,
Ltd. and ACEHOME Co., Ltd. have been added to this business segment.
Consequently, sales increased year on year.
Operating income increased though Suzukuri Co., Ltd and Nac Smart Energy Co., Ltd.
posted operating loss, we increased sales in highly profitable construction know-how
systems department.
In total, during the fiscal year ended March 31, 2021, the Construction Consulting
Business segment posted sales of 8,495 million yen (up 61.8% year on year) andoperating income of 807 million yen (up 10.5% year on year, including goodwill
amortization costs at 41 million yen related to ACEHOME Co., Ltd.).
[Housing Sales Business]
In the housing industries, the market recovered slightly under the effect of COVID-19.
Ministry of Land, Infrastructure, Transport and Tourism announced increase in new
construction starts in owned dwellings for 5 months in a row. The new construction
starts in total including rented and built for sale dwellings increased for the first timein 21 months since July 2019.
In this business segment, we sold all of our shareholding in Leohouse Co., Ltd. toYAMADA DENKI CO., LTD. (currently YAMADA HOLDINGS CO., LTD.) on May 14.
Consequently, Leohouse Co., Ltd. was excluded from our consolidated subsidiaries fromthe first quarter of this fiscal year.
KDI Co., Ltd. decreased sales year on year. However, increased operating income yearon year. This is attributable to the better gross profit.
J-wood Co., Ltd. decreased sales year on year, owing to a decrease in sales of real estate
for sale. Operating loss decreased year on year due to reducing SG & A expenses.
Although KUNIMOKU-HOUSE Co., Ltd. decreased sales year on year, it increased
operating income year on year by improving the gross profit and reduction of SG&Aexpenses.
To sum up, during the fiscal year ended March 31, 2021, the Housing Sales Businessposted sales of 10,341 million yen (down 77.6% year on year), and operating income of74 million yen (compared with a loss of 545 million yen a year earlier, including
goodwill amortization costs at 44 million yen related to KDI Co., Ltd. andKUNIMOKU-HOUSE Co., Ltd.).

[Beauty and Health Business]
Beauty and Health Business was significantly affected by the decline in inbounddemand due to COVID-19 and the slump in the whole cosmetics industry.
JIMOS Co., Ltd., decreased sales year on year. The main factor is decline in thenumber of customers. Unauthorized access to the server used at the company’s EC site
for online-shopping of cosmetics took place July, 2019. As a countermeasure, wesuspended use of EC site for four months. Therefore, the number of customers
decreased. Operating income decreased as a result of decline in sales.
BELAIR Co., Ltd., whose flagship merchandise is nutritional supplement, decreased
sales year on year. Operating income increased year on year due to reducing SG & A
expenses.
In total, during the fiscal year ended March 31, 2021, the Beauty and Health Businessposted sales of 7,213 million yen (down 17.7% year on year), and operating income of
122 million yen (down 2.3% year on year, including goodwill amortization costs at 336
million yen related to JIMOS Co., Ltd. and BELAIR Co., Ltd.).