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.

May 15, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:

NAC Co., Ltd.
Tokyo Stock Exchange
9788
https://www.nacoo.com/
Kan Yoshimura
President and Chief Executive Officer
Inquiries:
Hironari Kawakami
Director and Chief Financial Officer
Telephone:
03-3346-2111
Scheduled date of annual general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

June 29, 2023
June 30, 2023
June 30, 2023
Yes
Yes (for analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31,2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%March 31, 2023

57,068

3.9

3,232

17.1

3,243

16.1

2,002

17.2

March 31, 2022

54,924

(1.1)

2,760

(0.8)

2,792

4.1

1.708

(7.0)

Note: Comprehensive income

For the fiscal year ended March 31, 2023:
For the fiscal year ended March 31, 2022:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share¥1,994 million¥1,824 million

Return on equity[9.3%][(9.9%)]

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

%%

Yen

Yen

March 31, 2023

89.14

㸫

8.8

8.3

5.7

March 31, 2022

76.17

㸫

7.9

6.9

5.0

Reference:%

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023:¥ 㸫
For the fiscal year ended March 31, 2022:¥ 㸫(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

March 31, 2023

38,73523,20459.9

1,032.62

March 31, 2022

39,724

22,13855.5

983.20

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:¥23,204 million¥22,063 million%

Yen(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

March 31, 2023

1,709

(361)

(2,555)

11,029March 31, 2022

2,847

(1.107)(3,743)

12,187

2. Cash dividends
Annual dividends per shareFirstSecondThird
quarter-end quarter-end quarter-end
Fiscal year ended
March 31, 2022
Fiscal year ended

March 31, 2023

Fiscalyear-end

Ratio ofPayout ratio dividends to(Consolidated) net assets(Consolidated)

Total cash
dividends(Total)

Total

Yen

Yen

Yen

Yen

Yen Millions of yen

㸫

9.00

㸫

29.00

38.00

㸫

10.00

㸫

30.00

40.00

㸫

10.00

㸫

32.00

42.00

%%

857

49.9

3.9

904

44.9

4.0

Fiscal year ending

March 31, 2024

42.9(Forecast)* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

24,306,750 shares

As of March 31, 2022

24,306,750 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

1,835,341 shares

As of March 31, 2022

1,866,096 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

22,461,384 sharesFiscal year ended March 31, 2022

22,429,136 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Millions of yen

March 31, 2023
March 31, 2022

Operating profit%

Millions of yen

33,0320.1

33,004(0.7)

Ordinary profit%

Millions of yen

2,245

26.6

1,773

(30.8)

Profit%Millions of yen

%

2,352

26.3

1,294

13.7

1,862

(23.9)

1,138

59.1

Basic earnings
per share

Diluted earnings
per share

Fiscal year ended

YenYenMarch 31, 2023

57.63

㸫

March 31, 2022

50.78

㸫

(2) Non-consolidated financial position
Total assets
As ofEquity-to-asset ratio

Net assets

Net assets per share

Millions of yen

Millions of yen

March 31, 2023

36,93824,07865.2

1,071.52

March 31, 2022

38,242

23,69162.0

1,055.74

Reference:

EquityAs of March 31, 2023:
As of March 31, 2022:%Yen¥24,078 million¥23,691 million* Financial results reports are exempt from audit 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 don9t commit to achieve these forecasting numbers. Actualresults may differ from these forecasts by a variety of reasons.
3. Summary of Operating Result
㸦Consolidated Operating Results for the Current Fiscal Year㸧
During the fiscal year ended March 31, 2023, after restrictions on movement due to COVID-19 (hereinafterreferred to as <infectious disease=) was lifted, the economy activities gradually returned to normal and theJapanese economy is slowly picking up. However, prices continue to rise due to surge in raw materials andenergy costs influenced by the situation in Ukraine, and weak yen that makes the situation remain uncertain.
In retail and service industries, the individual consumption has been improving. Looking into the backgroundof consumption trend, gross compensation of employees is more or less unchanged and consumer sentimentbottomed out, but there are signs of recovery centered on face-to-face services such as eating out and travels.
Under these circumstances, NAC Group of companies has been actively working on expansion of infectious
disease related fields, improvement of customer service, strengthening sales promotion activities, andexpansion of trade areas in each business group.
As a result, sales of 57,068 million yen (increase of 3.9% year-on-year), operating income of 3,232 million yen(increase of 17.1% year-on-year), ordinary income of 3,243 million yen (increase of 16.1% year-on-year) andprofit attributable to owners of parent company of 2,002 million yen (increase of 17.2% year-on-year) werethe consolidated result for fiscal year ended March 31, 2023.
As for non-consolidated result, sales of 33,032 million yen (increase of 0.1% year-on-year), operating incomeof 2,245 million yen (increase of 26.6% year-on-year), ordinary income of 2,352 million yen (increase of
26.3% year-on-year), current net income of 1,294 million yen (increase of 13.7% year-on-year) were posted.
Segment results by business are as follows:In addition to the operating income of each segment, 1,341 million yen as corporate expenses not attributable
to any particular segment was posted.

㸦Results by Segment㸧
SalesCreCla Business㸦unit: million yen㸧

FY2022 Consolidated FY2021 Consolidated
ResultResult
14,73315,019Variance

YoY Change (%)

(285)

(1.9)

Rental Business

18,722

15,916

2,805

17.6

Construction Consulting Business

6,754

7,449

(695)

(9.3)

Housing Sales Business

10,067

10,686

(619)

(5.8)

Beauty and Health Business

6,826

5,921

904

15.3

Elimination of intersegment

(35)

(69)

34

㸫

57,06854,9242,144

3.9

TOTAL        Operating income
CreCla Business
Rental Business

FY2022 Consolidated FY2021 Consolidated
ResultResult
1,618
1,269

Variance

㸦unit: million yen㸧

YoY Change (%)

349

27.5

2,050

1,621

428

26.4

Construction Consulting Business

847

872

(25)

(2.9)

Housing Sales Business

(181)

233

(414)

㸫Beauty and Health Business

238

151

87

58.2

Others and adjustments(1,341)(1,387)46

㸫

TO TAL

3,232

2,760

472

17.1

ࠑCreCla Businessࠒ
In water delivery market, while corporate demands remain sluggish due to the infectious disease, the increasing
generalization of courier services and food stock for disaster awareness became a boost, individual demands
continue to increase. In addition, demand for water purifier dispenser is rapidly expanding, and new entrants
from other industries are becoming more active.
In CreCla Business, in order to attract new customers, we continued to strengthen sales promotion activities
such as promote safety of the products and services through <CreCla Anshin=, demonstrated CrePF (CreClaPlatform), a system infrastructure for data utilization and efficiency, as well as invest in sustainability strategies.
Moreover, in October 2022, we raised the price of CreCla bottles in response to the surge in raw material costs,
and increases in personnel and distribution costs.
In Directly managed stores division, although the number of basic customers is declining due to high prices
and entry of major companies, sales slightly increased year-on-year as a result of CreCla bottle price increase.
In our hypochlorous acid aqueous solution [ZiACO], although the number of customers is increasing, sales
decreased year-on-year due to decline of unit price per customer. As a result, overall result of Directly managed
store division remained the same level year-on-year (slightly increased).
In Affiliated stores, sales decreased year-on-year due to decrease in plant related sales and decline in sales ofrelated products as server price for affiliated stores were increased in April 2022.
Operating income increased year-on-year with the aforementioned price hike and review of sales promotion
activities.
As a result, sales of 14,733 million yen (decrease of 1.9% year-on-year) and operating income of 1,618 million
yen (increase of 27.5% year-on-year) were the consolidated results for the fiscal year ended March 2023.
ࠑRental Businessࠒ
In Rental Business, we continuously worked to expand our sales network and strengthen our service in theanticipation of increasing demand for each business for the 100-year lifespan.
In the mainstay Duskin business, sales increased year-on-year as a result of price increase of some products in
Dust control products division in July 2022, and the increasing businesses in Care Service division which
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 agreement with Duskin Co., Ltd in August 2018).

In With-branded pest-control devices wherein pest control devices <with= as mainstay, sales increased yearon-year with the price increase of some products in July 2022 and restaurants, a major customer, have reopened
and regular deliveries recovered.
Earnest Co., Ltd which provides regular cleaning services for corporate clients have sales significantly
increased with the success of continuing border control support project implemented by Ministry of Health,
Labor and Welfare in the infectious disease related business from the previous fiscal year.
Operating income increased year-on-year as the sales increase in Dust control products division of Duskinbusiness, With-branded pest-control devices business and Earnest Co., Ltd has covered the increase in SG&A
expenses of Care Service division due to business expansions.
As a result, sales of 18,722 million yen (increase of 17.6% year-on-year) operating income of 2,050 millionyen (increase of 26.4% year-on-year) were the consolidated results for the fiscal year ended March 2023. As for new store openings, Duskin Nagoya Branch, HealthRent Taito Station and HealthRent Koto Station
were established in the fiscal year ended March 2023.
ࠑConstruction Consulting Businessࠒ
In local construction industry and market, the external environment remains severe due to shortage of skilledworkers, soaring logistic costs, delays in the delivery of housing equipment due to shortage of semiconductors,
and high price of commodities.
In Consulting division, although we launch several new products related to DX and SDGs, and strengthened
the sales of subsidized products for the purpose of supporting IT introduction from the fourth quarter, due tothe continued surge of construction costs and repayment of infectious-disease related loans, sales decreased
year-on-year due to the decline in purchasing intent of our customers, local construction contractors.
Nac Smart Energy Co., Ltd which engages in construction and sales of materials related to energy savings,
have sales in the same level (slightly increased) year-on-year as delivery delays, and suspension of storage
battery and power conditioner that caused the shortage of semiconductor and production materials for each
item have gradually improved, and stagnant delivery pace recovered.
ACE HOME Co., Ltd which operates the housing franchise business, incurred decrease year-on-year due to adecline in wholesale sales caused by decreasing the number of completed frameworks in Affiliated stores.
The shift in sales structure in Nac Smart Energy Co., Ltd including construction contracts from the wholesalecentered improved the gross profit margin, but the decrease in sales in the Consulting division with high profit
margin affected the operating income of the entire Construction Consulting business. It was at the same level(slightly decreased) year-on-year. As a result, sales of 6,754-million-yen (decrease of 9.3% year-on-year) and operating income of 847-millionyen (decrease of 2.9% year-on-year, including the 41-million-yen goodwill amortization of ACE HOME Co.,Ltd) were the consolidated results for the fiscal year ended March 2023.
Effective April 1, 2023, ACE HOME Co., Ltd has merged with Nac Smart Energy Co., Ltd. And with thismerger, the company name has changed to Nac Haus Partner Co., Ltd.
ࠑHousing Sales Businessࠒ
In Housing industry, the situation remains severe with the number of new housings announced by the Ministryof Land, Infrastructure, Transport and Tourist (MLIT) in March for total housing including the rental houses
and ready-built houses decreased for two consecutive months and the number of owned houses in our businessarea has decreased for 16th consecutive month.
In KDI Corporation, although we strived in expanding the sales scope by opening new stores, sales are on thesame level (slightly decreased) year-on-year with the struggles of buying-in land due to increasing land costsin the city center and soaring prices of construction materials, as well as sluggish sales due to the slowdown inentire real estate market.
In J-wood Co., Ltd, sales decreased year-on-year as increase of unit price per building and sell of large
properties did not cover the decreasing sales due to decline of completed buildings.
As for the operating income, we sought to secure profits in KDI Co., Ltd by converting the soaring prices ofbuilding materials into selling prices, but it resulted to a decrease in profit due to the new stores and costs
associated with parts that could not be absorbed. And in J-wood Co., Ltd, investment was carried out in advancefor the surging of building materials and to promote customers which made the operating loss of the entire
housing business to expand significantly.
As a result, sales of 10,067 million yen (decrease of 5.8% year-on-year) and operating loss of 181 million yen(operating income of 233 million yen year-on-year, including the 30 million yen goodwill amortization of KDICorporation) were the consolidated results for the fiscal year ended March 2023.
As for the new store openings, KDI Corporation opened the Kichioji store in the fiscal year ended March 2023.

ࠑBeauty and Health Businessࠒ
In the cosmetic industry, as the effect of infectious disease such as relaxing of mask wearing policies andincreased eating out activities has calmed down, the demand for makeup products with foundation as first has
recovered, showing signs of pick-up for the entire industry.
In JIMOS Co., Ltd, not including the decrease caused by establishing UP SALE Co., Ltd in September 2021,
sales increased year-on-year with the growing sales of SINN PURETÉ that was started from the previous yearin addition to the sales of TOFU NO MORITAYA which was merged in July 2022.
In BELAIR Co., Ltd, sales decreased year-on-year following the decrease in the number of customers in themainstay nutritional supplements.
In UP SALE Co., Ltd, although new sales were added with the acquisition of pharmaceutical mail-orderbusiness (mainly a business handling third-class drug) in January 2022, sales declined in the existing hair carebusiness due to price increases aimed at improving profit margins and price competition with other companies,
so sales decreased year-on-year compared to the business unit before the new division.
In TOREMY Co., Ltd which became a subsidiary in the previous year and is mainly engaged in contract
manufacturing, sales increased compared to the same period after consolidation due to increase in orders asdemand recovered.
In operating income, JIMOS Co., Ltd made an active advertising investment to acquire new customers, but
profitability of UP SALE Co., Ltd and TOREMY Co., Ltd contributed to the Beauty and Health business. The
overall operating income increased significantly year-on-year.
As a result, sales of 6,826 million yen (increase of 15.3% year-on-year) and operating income of 238 millionyen (increase of 58.2% year-on-year, including the 202-million-yen goodwill amortization of JIMOS Co., Ltd,BELAIR Co., Ltd, UP SALE Co., Ltd and TOREMY Co., Ltd) were the consolidated results for the fiscal year
ended March 2023. 