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.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2022[JGAAP]
November 8, 2022
Company name

NAC Co., Ltd

Securities code

9788

Listed: Tokyo Stock Exchange
URL https://www.nacoo.com/

Representative

Kan YoshimuraContact Representative

President and Chief Executive Officer

Hironari Kawakami

Director and Chief Financial Officer

Quarterly Report Scheduled Submission Date

TEL 03-3346-2111

November 8, 2022

Scheduled date to commence dividend payments－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, 2022 (from April 1, 2022 to September 30, 2022)(1) Consolidated operating results (cumulative)
Net Sales
Six months ended(Percentages indicate year-on-year changes.)

Operating income

Profit Attributable toOwners of Parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

September 30, 2022

26,097(0.4)

552(46.6)566(44.9)254(58.5)

September 30, 2021

26,202(3.0)

1,033

25.1

1,027

47.4

613

(46.6)For the six months ended September 30, 2022:

148 million yen[(83.4) %]For the six months ended September 30, 2021:

891 million yen[(27.5) %]Note: Comprehensive income

Basic earnings
per Share

Diluted earnings
per Share

Six months endedYenYen

September 30, 2022

11.34－September 30, 2021

27.37－(2) Consolidated Financial Position
Total Assets
As ofEquity-to-asset ratio

Net Assets

Net asset per share

Million yen

Million yen%Yen

September 30, 2022

38,496

21,58356.1

960.51March 31, 2022

39,724

22,13855.5

983.20

Reference: Equity

As of September 30, 2022:

21,583 million yen

As of March 31, 2022

22,063 million yen

2. Cash Dividends
Annual Cash Dividend per Share

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

End of First QuarterEnd of Second QuarterEnd of Third Quarter

YenYenYenYenYen－

9.00

－

29.00

38.00

－10.00
－

30.00

40.00

Fiscal year ending
March 31, 2023 (Forecast)
Note: Revision of the dividend forecasts most recently announced: None- 1 -Year - end

Total

3. Forecast of Consolidated Results for Fiscal Year Ending March 31,2023 (from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)

Net Sales

Full-year

Operating income

Profit Attributable toOwners of Parent

Ordinary Income

Net income per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

60,0009.2

3,0008.73,000

7.4

2,000

17.1

89.12

Note: Revision of projected consolidated results of operations most recently announced: None

4.Qualitative Information on Quarterly Results〈Operating Results〉
During the six months ended September 30, 2022 (April 1, 2022 ～ September 30, 2022), the Japanese economy showed signs of gradual
recovery as the impact of COVID-19 (hereinafter referred to as “infectious disease”) eased.
The individual consumption in retail and service industries, our core business domain, showed gradual recovery. If we look into thebackground of consumption trend, gross employment income has been flat and consumer sentiment has weakened, but there are signsof recovery, particularly in face-to-face services such as dining out, accommodations, and entertainment, following the completion ofpriority measures to prevent the spread of the infectious disease.
Under these circumstances, the NAC Group of companies has been actively working on expansion of infectious disease related fields,
improvement of customer service, strengthening sales promotion activities, expansion of trade areas in each business groups.
As a result, sales of 26,097 million yen (decrease of 0.4% year-on-year), operating income 552 million yen (decrease 46.6% year-onyear), ordinary income 566 million yen (decrease of 44.9% year-on-year), profit attributable to owners of parent company 254 million
yen (decrease of 58.5% year-on-year) were the consolidated results for the second quarter of fiscal year ending March 31, 2023.
Operating result by Business Segment are as follows:In addition to the operating income of each segment, 710million yen as corporate expenses not attributable to any particular segment
were posted.
〈CreCla Business〉
In home delivery water market, while corporate demand remains sluggish due to the prolonged spread of infectious disease,new entrants into the water purifier type server business such as direct connection to water supply systems and water supply system areintensifying.
In CreCla Business, in order to attract new customers, we worked to promote safety of products and services through “CreCla Anshin”
commercial, demonstrated CrePF (CreCla Platform), a system infrastructure for data utilization and efficiency, and continued tostrengthen sales promotion activities, such as investing in sustainability strategies.
In Directly managed stores division, although the overall number of main customers remained the same, net sales slightly increased
year-on-year due to the rise in pace of water consumption because of higher average summer temperatures nationwide, and surge indemand prior to the price increase of CreCla bottles.
In our Affiliated stores division, the slight decline in the number of customers were covered by the rise in the pace of water consumption
and increase in deliveries due to the surge in demand for CreCla bottles. However, because of decline in sales quantity due to priceincrease of servers in April 2022 for Affiliated stores and decline in sales of hypochlorous acid solution (ZiACO) related products, thesales decreased year-on-year.
Although gross profit decreased due to the decline in sales of Affiliated stores division, SG&A expenses has reduced after reviewing
resulting an increase in operating income year-on-year.
As a result, sales of 7,419 million yen (decrease of 2.6% year-on-year) and operating income of 710 million yen (increase of 24.3%year-on-year) were the consolidated results for the second quarter of the current fiscal year.

- 2 -〈Rental Business〉
In Rental Business, we continuously worked to expand our sales network and strengthen our services in the anticipation of increasing
demand for each business in the 100-year cycle life.
In the mainstay Duskin business, sales increased year-on-year due to the increase in main sales of Dust Control Product Division in theprevious fiscal year, the price increase for some products in July 2022, and the continued increase of businesses in Care Service Divisionwhich provides comprehensive services such as housekeeping services, pest control, and floral and garden management (sales activities
were expanded by increasing sales staff after the capital and business alliance with Duskin Co., Ltd in August 2018).
In With-branded pest-control devices business wherein pest control devices “with” as mainstay, sales increased year-on-year as
restaurants (main customers of the business) gradually resumed operation and regular deliveries which has been suspended started torecover.
Earnest Co., Ltd which provides regular cleaning services for corporate clients, continued to perform well in the infectious diseaserelated business as in the previous fiscal year as a result of strong performance of the border control support projects implemented by
Ministry of Health, Labor and Welfare.
The increase in SG&A expenses due to business expansion was covered by the rise in the sales of With-branded pest-control devices
business and Earnest Co., Ltd resulting an increase in the operating income.
As a result, sales of 8,621 million yen (increase of 7.2% year-on-year) and operating income of 883 million yen (increase of 23.7%)
were the consolidated results for the second quarter of the current fiscal year.
〈Construction Consulting Business〉
In the local construction industry and market, the external environment continued to be severe due to shortage of skilled workers, soaring
logistic costs, delays in the delivery of housing equipment due to a shortage of semiconductors, and the global price of goods.
In Consulting division, sales decreased year-on-year due to a decline in the purchasing power of local construction contractors, ourcustomers, due to soaring construction costs and repayment of infectious disease-related loans.
Nac Smart Energy Co., Ltd which is engaged in construction and sales of materials related to energy saving had sales decreased yearon-year due to delays in the delivery of storage batteries and power conditioners due to prolonged shortage of semiconductors.
Sales at ACE HOME Co., Ltd which operates the housing franchise business, decreased slightly year-on-year due to a decline inwholesale sales caused by decrease of completed frameworks in the Affiliated stores, and a reactionary decrease in products jointly
developed with the Company, which were strong in the same period of the previous fiscal year.
Operating income decreased significantly year-on-year due to a decline in gross profit caused by decrease in sales of Consulting division,a high profit margin.
As a result, sales of 2,960 million yen (decrease of 15.3% year-on-year), operating loss of 58 million yen (operating income of 296million-yen year-on-year, including the 20-million-yen goodwill amortization of ACE HOME Co., Ltd) were the consolidated results
for the second quarter of the current fiscal year.
〈Housing Sales Business〉
In Housing industry, the number of new housings starts announced by the Ministry of Land, Infrastructure, Transport and Tourism(MLIT) in September decreased for the tenth consecutive month, and overall housing including rental housing and for-sale housing thatstarted to increase in August, decreased again.
Sales decreased year-on-year in KDI CORPORATION due to continued difficulty in purchasing caused by soaring land prices and risein construction costs, and slowdown in the real estate market due to the impact of higher prices of goods, despite the slight increase insales inventories.
At J-wood Co., Ltd, although the number of buildings completed decreased year-on-year, sales remained at the same level year-on-year
due to an increase in the unit price per building and an increase in sales from the real estate for sale sand brokerage fees.
The operating income decreased year-on-year due to decrease in gross profit caused by soaring prices of construction materials, anddecrease in gross profit at KDI CORPORATION due to decline in sales.
On the profit front, operating income decreased from the same period of the previous year due to a decrease in gross profit due to soaring
prices of materials for the construction department, and also a decrease in gross profit due to a decrease in net sales at KDICORPORATION.
As a result, sales of 3,931 million yen (decrease of 9.9% year-on-year) and operating loss of 197 million yen (operating loss of 61 million
yen in the same period of the previous fiscal year, including 15 million yen goodwill amortization of KDI CORPORATION) were theconsolidated results for the second quarter of the current fiscal year.
And regarding the opening of new stores, KDI CORPORATION opened the Kichijoji store during the first half the current fiscal year.

- 3 -〈Beauty and Health Business〉
In the cosmetic industry, the impact of infectious disease eased, and there were positive signs such as the relaxation of the guidelines onwearing masks by the Ministry of Health, Labor and Welfare and an increase in dining opportunities, and demand for cosmetics mainly
on makeup, showed signs of recovery.
JIMOS Co., Ltd posted a year-on-year increase in sales due to steady acquisition of new customers and strong sales of Tofu-no-Moritaya,
which was absorbed by JIMOS in July 2022, excluding the decrease caused by the incorporation-type split of the INFINITY BEAUTY
Business and Taisha Seikatsu CLUB Business to establish UPSALE Co., Ltd in September 2021.
Although sales increased in UPSALE Co., Ltd as a result of acquiring the Mail-order Pharmaceutical business (mainly deals with Class
3 drugs) in January 2022 and entering pharmaceutical business, it did not cover the decline in sales due to the price increase implemented
in the previous fiscal year, resulting a decrease in sales compared to the business unit prior to the incorporation-type split.
In BELAIR Co., Ltd, sales decreased year-on-year as the number of customers in our leading product, nutritional supplements continued
to decline.
Operating income decreased significantly year-on-year due to aggressive advertising investment ahead of schedule at JIMOS Co., Ltd
due to strong acquisition of new customers, a decrease in gross profit due to the decrease in sales at BELAIR Co., Ltd., and an increasein SG&A expenses due to the addition of personnel.
In addition, TOREMY Co., Ltd which focuses on contract cosmetics manufacturing became a subsidiary in July 2021, with the aim ofdeveloping new products and developing new businesses centered on beauty and health business, and operating income from the thirdquarter of the previous fiscal year is accrued (with minimal impact).
As a result, sales of 3,184 million yen (increase of 16.3% year-on-year) and operating loss of 75 million yen (operating income of 311
million yen year-on-year, including the 101 million yen goodwill amortization of JIMOS Co., Ltd., BELAIR Co., Ltd., UPSALE Co.,
Ltd., and TOREMY Co., Ltd) were the consolidated results for the second quarter of the current fiscal year.

- 4 -