１．Summary of Operating Result(1）Summary of Operating Result for the Current Fiscal Year（Consolidated Operating Results for the Current Fiscal Year）
During the Fiscal Year ended March 31, 2022 (Fiscal Year 2021), the Japanese economy continued to seesaw as theconfirmed cases of COVID-19 (hereinafter referred to as “infectious disease”) increases and decreases repeatedly.
In retail and service industries, the personal consumption has stalled its recovery. Looking at the background ofconsumption trends, gross employment income has been flat recently, and consumer sentiment has been weakened.
Under these circumstances, the NAC Group of companies has been actively working on expansion of infectious diseaserelated fields, improvement of customer service, expansion of trade areas, and business restructuring.
As a result, sales of 54.924 billion yen (decrease of 1.1% year-on-year), operating income of 2.760 billion yen (decreaseof 0.8% year-on-year), ordinary income of 2.792 billion yen (increase of 4.1% year-on-year), profit attributable toowners of parent company of 1.708 billion yen (decrease of 7.0％ year-on-year) were the consolidated result for fiscal
year ended March 31, 2022.
As for non-consolidated result, sales of 33.004 billion yen (decrease of 0.7% year-on-year), operating income of 1.773
billion yen (decrease of 30.8% year-on-year), ordinary income of 1.862 billion yen (decrease of 23.9% year-on-year),current net income of 1.138 billion yen (increase of 59.1% year-on-year) were posted.
Segment result by business are as follows:In addition to operating income of each segment, 1.387 billion yen as corporate expenses not attributable to anyparticular segment was posted.
（Result by Segment）
Sales（unit: million yen）
FY 2021

FY 2020

Consolidated Result

Consolidated Result

Variance

YOYChange（％）

CreCla Business

15,01914,881137

0.9

Rental Business

15,916

14,6261,290

8.8

Construction Consulting Business

7,449

8,495

△1,045△12.3

Housing Sales Business

10,686

10,341344

3.3

Beauty and Health Business

5,921

7,213

△1,292△17.9

Elimination of intersegment△69△45△24－

54,92455,513

△589

△1.1

Total
Operating income（unit: million yen）
FY 2021

FY 2020

Consolidated ResultConsolidated ResultVariance

YOYChange（％）

CreCla Business

1,269

1,627

△358

△22.0

Rental Business

1,621

1,333

288

21.7

Construction Consulting Business872807658.1

Housing Sales Business

233

74158

212.4

Beauty and Health Business

151

122

28

23.1

Others and adjustments△1,387△1,183

△204－

2,760

2,782

△21△0.8

Total- 1 -〈CreCla Business〉
In water delivery market, in addition to the increasing individual water consumption with more time spent at home, thedemand for value-added servers in order to have ample time at home was in upward trend.
CreCla Business, in order to attract new customers, engaged in sales promotion using Web and SNS, and had charactercollaborations on top of prior investments in recruitment and developing new products.
Our Directly managed stores division continued to engage in active sales promotion activities and improve service
quality that resulted a slight increase in sales year-on-year. The hypochlorous acid solution (ZiACO) that experienced
a sharp increase in sales in the previous fiscal year owing to heightened sanitation awareness, decreased in sales yearon-year as sales per customer declined even though the number of customers were in upward trend. As a result, overallsales of Directly Managed stores division slightly increased year-on-year.
In our Affiliated stores division, although plant related products increased year-on-year, overall sales were at the samelevel year-on-year due to reactionary decline in sales of hypochlorous acid solution (ZiACO) related products.
Operating income decreased due to an increase in SG&A expenses in securing sales staff and strengthening sales
promotion activities as prior investments focusing on Directly managed stores division to increase number ofcustomers.
As a result, sales of 15.019 billion yen (increase of 0.9% year-on-year) and operating income of 1.269 billion yen(decrease of 22.0% year-on-year) were the consolidated result of the current fiscal year.
〈Rental Business〉
In the Rental Business, we worked to expand our sales network and strengthen our services in the anticipation ofincreased demand for each business in the 100-year life cycle.
In the mainstay Duskin business, sales of Dust Control Product Division were on the same level year-on-year, while theCare Service Division which provides comprehensive services such as housekeeping services, pest control, and floral
and garden management, expanded the business (after capital and business alliance with Duskin Co., Ltd in August
2018, sales promotion personnel have been increased to expand sales activities), resulting an increase in sales. And
overall sales of Duskin business increased year-on-year.
The With business wherein pest control devices “with” as mainstay, incurred decreased in sales year-on-year whenrestaurants (main customers of the business) that gradually resumed operation and regular deliveries showing signs ofrecovery after lifting the State of Emergency was not enough to compensate the decline in customers due to prolonged
closures and shortened business hours.
Earnest Co., Ltd, which provides cleaning services to business clients, has sales significantly increased as a result oflarge increase in request for disinfection and cleaning work related to infectious disease, in addition to increase inrequest from major customers related to vaccination sites operation.
The decline in sales of With Business, and increase in SG&A expenses of Care Service Division mainly due tostrengthening of sales promotion activities was covered by the increase of sales Duskin business and Earnest Co., Ltd
which resulted an increase in operating income year-on-year.
As a result, sales of 15.916 billion yen (increase of 8.8% year-on-year) and operating income of 1.621 billion yen(increase of 21.7% year-on-year) were the consolidated result of the current fiscal year.
And regarding store openings, Duskin business opened HealthRent Ichikawa Station, HealthRent Odawara Station,
HealthRent Sagamihara Station and Takatsuki Branch in this fiscal year.
〈Construction Consulting Business〉
The local construction industry and market continued to face significant environmental challenges due to labor shortageand escalating logistics costs, followed by delays in delivery of housing materials and equipment due to lumber shortage
and semiconductor supply shortages.
In Construction Know-How System (not including suzukuri Division), sales increased year-on-year with thecontribution of new store openings and price revision. On the other hand, the sales of suzukuri Division (changed
business segment from Housing Sales to Construction Consulting since the previous fiscal year and is calculated in- 2 -Construction Know-How System Division from Q3), which engages in housing sales, resulted a year-on-year decreasein overall sales due to decline in number of houses completed as a result of sluggish growth in the process of shifting its
focus from housing sales to content business.
The NAC Smart Energy Co., Ltd which engages in installation and sales of energy-saving related materials, incurred
decreased in sales year-on-year due to a drop in the unit price per customer caused by a shift in major customers fromcorporations to individuals, as well as delays in construction schedules caused by delay and suspension of deliveries ofstorage batteries, power conditioners, eco-cutes, and other products due to a shortage of semiconductors.
ACE HOME Co., Ltd reported a year-on-year increase in sales as a result of strong sales of products that were jointly
developed with the NAC, which started in October 2020 and an increase in wholesale sales following the increase in thenumber of houses built by the affiliated stores. ACE HOME Co., Ltd had a 13-month fiscal year for the current fiscal
year due to a change in its fiscal year end (from February to March).
The decrease in operating income following the sales decline in suzukuri Division was covered by the increase inoperating income following the sales increase in Construction Know-How System and ACE HOME Co., Ltd, resulting
a year-on-year increase in overall operating income of Construction Consulting Business.
As a result, sales of 7.499billion yen (decrease of 12.3% year-on-year) and operating income of 872 million yen (increase
8.1% year-on-year, including 41million yen goodwill amortization of ACE HOME Co., Ltd) were the consolidated resultof the current fiscal year.
And regarding store openings, Construction Know-How System Division opened Matsuyama Branch and Kanazawa
Branch in this fiscal year.
〈Housing Business〉
In Housing Sales Industry, the number of new housings in March as announced by the Ministry of Land, Infrastructure,
Transport and Tourism (MILT) showed an increase in overall housing including rental and for-sale houses for 13
consecutive months but the owner-occupied houses, our business domain, is in a difficult situation with a decline forfour consecutive months.
In KDI Corporation, due to the difficulty of purchasing land caused by rising land prices in Tokyo, and shortage ofconstruction materials due to lumber shortage that led a decline in sales inventory, resulted a year-on-year decrease insales.
In J-wood Co., Ltd, orders received during the first half of the current fiscal year were strong due to the application
deadline for the Home Stay Benefit Program, one of the government’s economic measures for home acquisition, leading
to an increase in the number of houses completed, resulting in a year-on-year increase in sales.
KDI Corporation contributed to the increase in sales prices due to higher land prices in the market, which led to animprovement in profit margins, resulting significant year-on-year increase in operating income.
In J-wood Co., Ltd, although there was a rise in material cost due to lumber shortage, operating loss narrowed year-onyear as a result of year-on-year sales increase, and decline in SG&A expenses owing to relocation and reorganization
carried out the previous fiscal year.
As a result, sales of 10.686 billion yen (increase of 3.3% year-on-year) and operating income of 233 million yen(operating income of 74 million yen for the previous fiscal year, including amortization of goodwill of 44 million yen of
KDI Corporation and J-wood Co., Ltd) were the consolidated result of the current fiscal year.
Moreover, J-wood Co., Ltd merged with KUNIMOKU HOUSE effective April 1, 2021. This business is continued byJ-wood Co., Ltd as KUNIMOKU HOUSE brand.
〈Beauty and Health Business〉
Beauty and Health Business continued to face significant environmental challenges due to the infectious disease that
resulted a decline in purchases by incoming tourists, as well as decline in demand for cosmetics, especially for makeups
because of stay-at-home measures.
JIMOS Co., Ltd incurred year-on-year decrease in sales due to a restraint in buying makeup products with lesser
opportunities to use makeups caused by prolonged effects of the infectious disease.

- 3 -In BELAIR Co., Ltd, although sales of Beauty and Health products are selling well, the customers of nutritional
supplements, our leading product, are in a downward trend resulting a year-on-year decrease in sales.
The year-on-year increase of operating income in JIMOS Co., Ltd as efforts to reduce SG&A expenses, mainly sales
promotion, personnel expenses and outsourcing expenses covered the decline in gross profit associated with decreasein sales.
In BELAIR Co., Ltd, due to sales decline of high-margin nutritional supplements, operating income decreased year-onyear.
In addition, with the purpose of new business and new product development centered on beauty and health business,
TOREMY Co., Ltd which mainly engaged in contract manufacturing cosmetics became a subsidiary in July 2021,
accounting income statement from Q3 of the current fiscal year (with minimal impact).
As a result, sales of 5.921 billion yen (decrease of 17.9% year-on-year) and operating income of 151 million yen(increase 23.1%, including the 185million goodwill amortization of JIMOS Co., Ltd, BELAIR Co., Ltd, UPSALE Co.,Ltd and TOREMY Co., Ltd) were the consolidated result of the current fiscal year.
In addition, Infinity Beauty Business and Taisha Seikatsu Club Business of JIMOS Co., Ltd went through company split
in September 2021 and established UPSALE Co., Ltd with the purpose of strengthening EC business, focusing on ourown EC site and EC mall.

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