Results for the 1st Quarter ended June 30, 2017
【 Reference 】
Translation

In the case of inconsistencies between the Japaneseand English version, the Japanese version will control
and supersede any ambiguities.

August 8th, 2017

NAC Co., Ltd.
Code; 9788 TSE 1st section

Topics

1. Results for the 1st quarter

…

P. 2

2. Results by Segments

…

P. 9

3. FY2017 Forecasts of Financial Results

…

P. 22

4. Appendix… P. 27

This document contains certain forward-looking statements including the NAC Group’s sales andcontract targets based on information available to the Group as of the date of release. Thesestatements are subject to a number of risks and uncertainties such as economic and businessconditions as well as the outcomes of new services.
Therefore, please understand that actual future results may differ materially from these projections
set forth in the Group’s forward-looking statements.

11. Results for the 1st quarter

2

1

Q1 FY2017 Consolidated Results
3 months
ending FY2017（Millions of yen）

3 months
ended FY2016

YOY
Comparison

Sales15,865

14,538＋9.1％

Gross profit

7,108

7,108

+0％

（Gross margin）

44.8%

48.9%

▲4.1pt

SG&A

8,869

8,966

▲1.1％

Operating Income▲1,760▲1,858－（Operating margin）▲11.1％▲12.8％+1.7ptNon-operating
income and loss

4

▲14+128.6%

Ordinary Income▲1,756▲1,872－Extra-ordinary
income and loss

▲177

▲48

－

▲1,461▲1,406－Net Income
attributable to owners of parent≫ Consolidated sales rose year on year thanks to the growth of segment sales except the CreCla business.
≫ Although the Construction Consulting and Housing business decreased sales, other segments improved sales.
Then, operating income rose year on year.
≫ Regarding extra-ordinary loss, we posted impairment loss of Non-current assets (6bases) in Leohouse and loss on valuation of investments incapital (an overseas subsidiary in China).
3

Sales & Operating income trend by Quarter

1（Million of yen）
35,000（Million of yen）
Sales

5,000

Operating Income
30,781

30,0004,000
25,001

25,0003,000

20,89818,77620,00019,822

20,759

1,829

2,389
15,865

15,6252,000

14,53815,000
419

1,000

640

10,000
5,000

0

▲ 414

▲ 33

▲ 1,0000▲ 5,000▲ 1,760▲ 1,514

Q1

Q2

Q3

FY2015

Q4▲ 1,858

Q1

Q2

Q3

FY2016Q4

Q1▲ 2,000

FY2017≫ Nac tends to post an operating loss in the 1st quarter because hand-over in the
Housing business usually concentrate around 4th quarter.
4

1

Sales by Segment（Millions of yen）

3 months
ending FY2017

3 months
ended FY2016

YOY
Comparison

CreCla

3,182

3,243

▲1.9％

Rental

3,341

3,170

＋5.4％

Construction
Consulting

1,327

1,220

+8.8％

Housing Sales

5,485

4,376

+25.3％

Mail-order

2,547

2,528

+0.7％

Elimination

▲19

▲1

－

15,865

14,538

+9.1％

Total

≫ In the CreCla Business, our directly managed store increased sales, but affiliates dropped sales. Overall, sales decreased year on year.
≫ In the Rental business, sales rose year on year due to sales growth in all business area.
≫ In the Construction Consulting business, the construction materials business rose sales largely even though the construction know-how
systems and Eco&Eco decreased sales. Thus, sales increased year on year.

≫ In the Housing business, sales increased year on year because J-wood grew sales and we posted sales regarding KDI from the second
quarter in FY2016.
≫ In the Mail-order business, sales increased year on year because we newly posted sales regarding BELAIR in FY2017.

5

1

Operating income by Segments（Millions of yen）

3 months
ending FY2017

3 months
ended FY2016

YOY
Comparison－

CreCla▲104(▲3.3％)▲186(▲5.8％)(+2.5pt)

Rental437(13.1％)

366(11.6％)+19.2%(+1.5pt)

Construction
Consulting

45(3.4％)

103(8.5％)▲56.0%(▲5.1pt)

Housing Sales▲1,640(▲29.9％)▲1,543(▲35.3％)(+5.4pt)

Mail-order▲202(▲8.0％)▲266(▲10.5％)－（+2.5pt)

Elimination,
HQ Cost

▲296

▲332

－

▲1,760▲1,858(▲12.8％)－≫TotalThe CreCla business rose operating income year on year due
to sales increase.
(▲11.1％)－(+1.7pt)≫ The CreCla business increased operating income year on year owing to revisions to management costs.
≫ The Rental business increased operating income year on year due to sales growth in all business area.
≫ The Construction Consulting decreased operating income year on year since the construction know-how systems decreased sales and Eco&Eco
dropped sales significantly.

≫ The Housing business decreased operating income year on year owing to the rise in construction costs and costs related to new store openings.
≫ The Mail-order business improved operating income year on year due to the proper operation of investments in advertising and sales.
61Analysis for operating income & loss(YoY change)※Increase and Decrease of SG&A
＋ Increase in profit and loss
▲ Decrease in the profit and loss

（Millions of yen）

Sales promotion costs Commission
andpaid
Advertising Exp.

＋172（＋9.1％）＋123

Personnel
expenses

▲ 123

Rent

▲ 38

Depreciation
andAmortization

Others▲ 30▲7（＋27.4％）（ ▲ 3.6％）（▲ 6.5％）（▲ 6.4％）（▲ 0.3％）▲ 1,858
FY2016
Q1▲ 1,760
FY2017
Q1

The reason of increases and decreases of SG&A
≫ Sales promotion costs and advertising expenses decreased because of the proper operation of investments in advertisingand sales in all segments.
≫ Commission paid declined since consulting fees such as M&A decreased compared with last year.

≫ We newly posted personnel expenses in KDI, suzukuri and BELAIR.
7

1

Consolidated Balance Sheet（Millions of yen）

As of June.
2017

Break down

As of Mar.
2017

Break down

21,53550.8 ％

22,133

50.9%

▲598

Total property, plant and equipment

13,51531.9 ％

13,813

31.8%

▲297

Intangible assets

3,436
3,906
20,85742,393

8.1 ％

8.2%

49.2 ％
100.0%

3,546
4,006
21,36643,49949.1%
100.0%

▲11
▲100
▲508
▲1,106

Total liabilities

20,693
7,816
28,51048.8 ％
18.4 ％
67.3 ％

20,905
7,087
27,992

48.1%
16.3%
64.4%

▲211
+729
+517

Shareholder’s equity

14,68834.7 ％

16,31437.5%▲1,625

Accumulated other comprehensive income▲805▲1.9 ％

▲807

▲1.9%

＋1

13,882
42,39332.8 ％

15,50643,49935.7%

Current assets

Investments and other assets
Non-current assets
Total assets

Current liabilities
Non-current liabilities

Total net assets
Total liabilities and net assets

9.2 ％100.0%

9.2%

100.0%

Comparison▲1,623▲1,106■ Current assets ： Cash and deposits ▲3,952 Costs on uncompleted construction contracts +1,963■ Non-current assets ： Building and structures ▲319
■ Current liabilities ： Accounts payable ▲2,749
Advances received on uncompleted construction contracts +2,693■ Non-current liabilities ： Long-term loans +815
Equity Ratio ： 32.8％
8

2. Results by Segments

9

2

Results by Segment (1) CreCla（Millions of yen）
4,000

Sales

To affiliates

Directly managed

3,209

3,243

3,181

1,185

1,193

1,105

2,024

2,050

2,077

FY2015 Q1

FY2016 Q1

FY2017 Q1

3,000

2,000

1,000

0

≫ Our direct managed stores increased the number of new customers and bottle consumption per customer.
As a result, sales increased year on year.
≫ In affiliates, sales declined year on year due to decreases in sales of the water cooler to affiliates and bottles tocustomers.
（Millions of yen）
500
Operating income

Operating
Income250

0FY2015 Q1

FY2016 Q1

▲186

-250

FY2017 Q1

▲104

▲262
-500

≫ Operating income increased year on year because of revisions to management costs.
10

Results by Segment (1) CreCla

2（Millions of yen）
5,000

Sales

4,000

3,209

（Millions of yen）
1,000

Operating income

800

3,614

3,450

3,252

3,182

3,243

3,214

3,220

3,182

3,000

600

2,000

400

201

1,000

42

0
-1,000Q1 ▲ 262 Q2

14

3

Q3

-2,000FY2015

Q4

▲ 104

89

▲ 186

Q1

200

169

0

Q2

Q3

Q4

FY2016

Q1

-200
-400

FY2017≫ The CreCla invests in advertising during Q1 & Q3 than Q2 & Q4.
≫ The CreCla business tends to increase operating income in Q2 & Q4.
11

2

Results by Segment (2) Rental（Millions of yen）
4,000

Sales

Earnest

3,170
312

3,341
340

544

570

601

2,222

2,287

2,400

FY2015 Q1

FY2016 Q1

FY2017 Q1

with
3,000

Duskin

3,075
308

2,000

1,000

0

≫ In the Duskin business, the number of customers and sales per customer held steady. What is more, we expanded totalcare service. As a result, sales increased year on year.
≫ The With-branded pest-control devices business strengthen sales promotions in both our directly managed stores andaffiliated stores. Therefore, sales increased year on year.
≫ Earnest recorded sales growth thanks to steady orders received via the Internet and an increase in referrals of new（Millions of yen） customers by existing customers.
500

Operating
Income

400

437
442

366

300
200
100

Operating income

0

FY2015 Q1

FY2016 Q1

FY2017 Q1≫ The Rental business increased operating income year on year due to sales growth in all business area.
12Results by Segment (2) Rental

2（Millions of yen）

(Millions of yen)
4,000

800
Sales

Operathing income
3,465

3,500
3,075

3,221

3,271

3,196

3,170

3,284

442

3,341

566

3,000
2,500

3,214

470

492

436

2,000

600
462

457

700

437

500
400

366

1,500

300

1,000

200

500

100

-

-

Q1

Q2

Q3
FY2015

Q4

Q1

Q2

Q3

Q4

FY2016Q1
FY2017≫ Sales and Operating income hold steady through the year over.
13

2

Results by Segment (3) Construction Consulting※1 It includes internal transactions about 27 millions yen.

Sales

※2 It includes internal transactions about 40 millions yen.
(Millions of yen)
Eco&Eco2,000
Construction materials

1,500

1,000

Know-how system

1,382

796

※2
※1

1,247
250
520

1,367
100
801

500

585

476

466

FY2015 Q1

FY2016 Q1

FY2017 Q1

0≫ In the construction know-how systems, our main customers, small and midsize building contractors tented to reduceinvestments resulting from uncertainty about market prospects. As a result, sales declined year on year.
≫ In the construction materials, the number of orders regarding solar powered house increased. Moreover, we started
offering construction materials for subdivided housing unit and renovation in the adjacent market from last year, so it
gradually produces positive results. Overall, the construction materials business increased sales significantly year on
year.

(Millions of yen)

≫ Eco & Eco has begun to serious efforts to change its business model in order to generate stable profits throughimprovements of income structure. Consequently, sales decreased largely.

300

Operating
Income250

This segment includes

232

the Amortization of goodwill at 4

million yen related to Eco&Eco.

200
150

103

100
50

45
Operating income

0

FY2015 Q1

FY2016 Q1

FY2017 Q1≫ The Construction Consulting decreased operating income year on year since the construction know-how
systems decreased sales and Eco&Eco dropped sales significantly.
14

Results by Segment (3) Construction Consulting

2(Millions of yen)
2,500(Millions of yen)
Sales

700

Operating income

2,243
2,086

600

2,000

506

1,685
1,500

1,382

1,419

1,365
320

1,327

1,220

302

291

1,000

1,363

500
400
300

232

215

500

200

130

103

100

45
-

-

Q1

Q2

Q3
FY2015

Q4

Q1

Q2

Q3
FY2016Q4Q1
FY2017≫ Sales and Operating income tend to increase around Q4
15

2

Results by Segment (4) Housing sales(Millions of yen) ※1 It includes internal transactions about 6 millions yen.
KDI

【 Suburban areas 】【 Urban areas 】

J-woodOthersTokyo Kanagawa
Chiba Saitama

10,000

Sales

Leohouse（suburban areas）
8,000

Leohouse（urban areas）

5,501
630

6,000

4,000

※

4,376
560

5,491
864
822

4,257

3,289

3,252

630

527

552

FY2015 Q1

FY2016 Q1

FY2017 Q1

2,000

0

≫ Leohouse declined sales slightly year on year owing to the delay of the construction and delivery caused by the lackof manufacturers and craftspeople.
≫ J-wood rose sales year on year because orders in hand increased as of the end of the previous fiscal year.
(Millions of yen)
500

Operating
IncomeOperating income

0

FY2015 Q1

FY2016 Q1-500

FY2017 Q1This segment includes
the Amortization of goodwill at 23-1,000-1,500▲1,317

million yen related to J-wood and KDI.
▲1,543▲1,640-2,000≫ Operating income declined year on year due to the rise in construction costs and costs related to new store openings.
16

2

Results by Segment (4) Housing sales(Millions of yen)

(Millions of yen)

20,00019,822

Sales

4,000

Operating income

3,000

13,932

15,00010,372
10,000

7,644

9,012

1,302

9,725

2,000

1,735

1,000

5,501
5,000

5,485
4,376

20

▲ 144

0

▲ 671
▲ 418

0

-1,000▲ 1,317
Q1

Q2

Q3

Q4

Q1

▲ 1,543

Q2▲ 1,640Q3Q4Q1-5,000-2,000FY2015FY2016FY2017≫ Sales and Operating income tend to increase around Q4
17

2

Results by Segment (4) Housing sales

124 stores（ Leohouse ：105 stores, J-wood ：10 stores, KDI ：1 store, suzukuri : 8 stores）
Leohouse

Leohause opened new stores（ As of Mar.31, 2017 ）during the 1st quarter

J-woodsuzukuri opened new stores（ As of Mar.31, 2017 ）during the 1st quarter

Hokkaido

AomoriKDI（ As of Mar.31, 2017 ）： 105 stores ( Branch : 46 / Model display site : 56 / Others : 3 )： 10 stores ( Housing café : 3 / Model display site : 7 )：1 store ( Branch : 1 )：8 store ( Branch : 7 / Other : 1 )Wakayama

Shizuoka

Fukushima
Tochigi

SaitamaTokyo

Kanagawa

Chiba

Tokushima

Aichi

Kochi

NiigataYama-nashi

Mie

Kagoshima

Nara

KagawaOsaka

MiyazakiOkinawa

Ehime

Kuma
-moto

Miyagi

Gumma

Fukui
Shiga

Yamagata

IbarakiOkayama

Iwate

NaganoHiroshima

ToyamaGifu

Tottori

Kyoto

Shimane

Hyogo

Oita

Yamaguchi

Saga

Nagasaki

Fuku
-oka

Ishikawa

Leohouse
J-woodKDI
suzukuri

Akita

18

2

Results by Segment (4) Housing sales

Quarterly store openings, number of orders, completions and average sales price（Leohouse)（Number of houses ordered）
FY2015FY2016FY2017

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Numberof Orders

387

533

406

459

457

677

397

550

439

Complet
ions

238

500

347

694

186

390

403

871

188

Ordersin hand

1,035

1,057

1,109

861

1,114

1,385

1,361

1,016

1,245

Change

+133

+22

＋52

▲248

+253

+271

▲24

▲345

+229

Unit
price

※1

※1

18.49 million yen※1

18.26 million yen

Q2

Q3

Q4

18.50 million yen※1 Unit price excludes additional costs and exterior construction costsStore
openings

Total
stores

7
※2

109

0
※3

108

Closing of model display sites :
※2 ▲5

0

0
※4

108

105

2
※5

105

0

0

0

105

105

105

5
※6

105
※6 Brand change to suzukuri ▲5

※3 ▲1
※4 ▲3
※5 ▲2

19

2

Results by Segment (5) Mail-order(Millions of yen)
4000
OthersSales

Mail-order
3000

2,467

2,528

2,557
148

2000

2,408
1000

0

FY2015 Q1

FY2016 Q1

FY2017 Q1≫ The mainstay Macchia Label brand increased in the number of new customers, but sales decreased slightly due to a decrease inorders from existing customers.
≫ Sales of the Coyori brand of skin and hair care products grew year on year as a result of a steady increase in the number of new
customers.
≫ Sales decreased year on year in the mail-order consulting business.
(Millions of yen)0

Operating
IncomeOperating income-100

FY2015 Q1

FY2016 Q1-200

FY2017 Q1

▲202
▲266

-300

▲316

This segment includes Amortization of
goodwill at 141 million yen related to JIMOS
and BELAIR.

-400≫ The Mail-order business improved operating income year on year due to the proper operation of investments in advertising.
20

2

Results by Segment（５）Mail-order（Millions of yen）

(Millions of yen)

4,000

800
Sales

Operating income

2,993

2,960

3,000

2,467

2,492

2,458

2,528

2,493

2,447

2,547

2,000

600

400

233

1,000

213

200

112
0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

▲ 189

▲ 202

▲ 135
!(1,000!)

▲ 266

▲ 316
!(2,000!)

FY2015▲ 215

FY2016FY2017

0

▲ 200

▲ 400

≫ Sales and operating income generally are tilted toward the second half of the year due to aggressive investment in advertising andpromotions the first half of the year.
≫ Operating income is expected bellow zero resulting from amortization of goodwill .
21

3. FY2017 Forecasts of Financial Results

22

3

FY2017 Forecasts of Financial Results（millions of yen）

FY2016FY2017

YoY comparison

85,90196,300+ 12.1 %Operating income

756

2,000

+ 164.2 %Ordinary income

793

2,050

+ 158.4 %Net income

415

850

+ 104.6 %27 yen37 yen-24.65 yen50.62 yen+ 25.97 yen

Sales

Dividends per share

EPS

23

3

FY2017 Forecasts of Financial Results■ Sales

96.3 billion yen (YoY Comparison +12.1％)■ Operating income 2 billion yen (YoY comparison +164.2%)
CreclaHousing Sales[ Leohouse, Ltd. ]Acquire new customers⇒ Implement sales promotions aggressively
Improve sales per customer and retention rate
⇒ Supply additional products⇒ Sell a new good named “Caffitaly”⇒ Offered diverse value-added products such as “CoCo as alineup of Dai-ninki no ie”⇒ Tap into several markets like renovation⇒ Sell the low-cost brand (semi-custom made and fashionably
design)[J-wood Co., Ltd.,]⇒ Strengthen the popular customer attraction model more andmore.

Rental[ Dust control products business ]⇒ Carry out M&A⇒ Expand the total care service⇒ Expand online sales[ Pest-control devices business]⇒ Develop new products

Construction Consulting[ Know-how business ]⇒ Work on support system forcustomers⇒ Develop new products and update
existing goods

Mail-order
Acquire new customers⇒ Expand the business overseas⇒ Develop the new brand[ Construction materials ]⇒ Enter new markets such as
subdivided housing unit
24

FY2017 Sales Forecasts by Segment

3（Millions of yen）

Sales

ResultFY 2016Plan
FY 2017Comparison

CreCla13,293

13,500+ 1.6 %

Rental13,135

13,600+ 3.5 %

Construction
Consulting

6,089

6,200

+ 1.8 %

Housing Sales

42,93652,000+ 21.1 %Mail-order

10,463

11,000+ 5.1 %

Elimination

▲16

-

-

85,90196,300+ 12.1 %Total□ We recoganize housing businesses in order to improve corporate performances.

25

FY2017 Operating income Forecasts by Segment

3（Millions of yen）

OperatingincomeResultFY 2016Plan
FY 2017Comparison

CreCla274(2.1 %)

300(2.2 %)＋ 9.3 %(+0.1 pt)

Rental

1,853(14.1 %)

1,800
(13.2 %)

▲ 2.9 %(▲ 0.9 pt)

Construction
Consulting

956(15.7 %)

900
(14.5 %)

▲ 5.9 %(▲ 1.2 pt)

Housing Sales▲ 622(▲ 1.5 %)650(1.3 %)(＋ 2.8 pt)

Mail-order▲ 457(▲ 4.4 %)50(0.5 %)(+ 4.9 pt)

Elimination,
HQ Cost▲ 1,247▲ 1,700

-

Total

756
(0.9 %)

2,000（2.1 %)＋ 164.2 %（+ 1.2 pt)Note)The figures inside( )marks indicate operating margin.

26

4. Appendix
About Us and Our Business27

4Company's outline（As of the end of March 2017）

Company name

NAC Co., Ltd.

Head office

Shinjuku Center Building, 1-25-1 Nishi-shinjuku Shinjuku-ku, Tokyo

EstablishedMay 1971

President

Kan Yoshimura

Businesses■ CreCla（Production and sale of bottled water）■ Rental（Duskin franchise business, pest control machine rental, regular cleaning plan）■ Construction Consulting（Construction know-how, solar energy systems）■ Housing Sales（Contract construction of a custom-built house, sales of subdivided housing unit, finance andinsurance affairs with housing sales）■ Mail-order (Cosmetics, health food and alcohol beverage mail-order sales)

Consolidated
companies

Leohouse Co., Ltd.（Housing sales）
Earnest Corporation（Building maintenance）
JIMOS Co., Ltd. （Mail-order）
BELAIR Co., Ltd. (Mail-order)
J-wood Co., Ltd. （Housing sales）
Eco ＆ Eco Co., Ltd.（Sales of energy-saving products ・Construction）
KDI Co., Ltd. （Housing sales）
Nac life partners Co., Ltd. （Finance and Welfare）

Employees

2,174 (consolidated)

Capital stock

4,000 millions yen

Number of shares

18,719,250 shares (share unit :100 shares）

Number ofshareholders

11,775 (Total number of shareholders; treasury shares are excluded)28

4

Key Financial Indicators（Consolidated）
FY2015
Average number of shares
during the period

FY2016Comparison

16,867,190 shares

16,854,157 shares▲ 13,033 shares

Net assets per share（BPS）

934.95 yen

923.41 yen▲ 11.54 yen

Net income per share（EPS）

14.99 yen

24.65 yen

+ 9.66 yen

Equity ratio

38.0 %

35.6 %▲ 2.4 pt

Ratio of shareholder’sequity to Net income
（ROE）

1.6 %

2.7 %

+ 1.1 Pt

Dividends per share

38 yen27 yen▲ 11 yen

Dividend ratio

253.6 %

110.1 %

▲ 143.5 pt

4.0 %

2.9 %

▲ 1.1 pt

Ratio of dividends toshareholder’s equity29

4Company History

May. 1971

Established Duskin Tsurukawa in Machida city

Aug. 1977

Changed company name to NAC Co., Ltd

Sep. 1995

Listed on the JASDAQ market

Jan. 1997

Listed on the 2nd section of
the Tokyo Stock Exchange

Sep. 1999

Listed on the 1st section of
the Tokyo Stock ExchangeDec. 2001

Started bottled water “CreCla” delivery businessFeb. 2002

Started housing sales business through Leohouse

Feb. 2010

Achieved 50 billion yen of sales
when celebrating its 40th year

Mar. 2012

Acquired Earnest Corporation

Jul. 2013

Acquired JIMOS Co., Ltd.
& J-wood Co., Ltd.

Apr. 2014

Opened the CreCla Honjo-Plant

Sep. 2015

Acquired Eco & Eco Co., Ltd.

May. 2016

Acquired KDI Co., Ltd

Dec. 2016

Acquired BELAIR Co., Ltd

Apr. 2017

suzukuri Co., Ltd started the housing business

June. 2017

Established ACC Co., Ltd ( a cooperative corporation ) with Aquaclara Co., Ltd.

June. 2017

Acquired KUNIMOKU HOUSE Co., Ltd.

30

4

Positioning in a market of each business

CreCla■ Market leader in bottled water sales（Number of affiliated stores : 600）
■ Market leader in bottled water production■ First HACCP certified business in the industry■ First Eco Mark certified business in the industry■ First in the industry to open an R&D center

Rental■ Highest sales of all Duskin franchisees（out of approximately 2,000 companies）■ With-branded pest control devices for restaurants first in the industry to be approved by Ministry of Health,Labour and Welfare

Construction
Consulting■ Nac members ( Construction company : 6,000 )■ Providing support for affiliated building firms through order promotion and cost reduction services, including
solar power systems and products for Smart House■ Acquired Eco & Eco Co., Ltd. (September, 2015) that deals with energy-saving products.

Housing
Sales■ Contract construction of a custom-built house under the Leohouse brand■ Leading local builder in contract construction (FY2011, FY2012 and FY2013)■ Acquired J-wood Co., Ltd. (July 2013) that produces natural houses■ In the survey of customer’s satisfaction of custom-built house conducted by Oricon, we won female customer’ssatisfaction No.1 in three categories.
■ We acquired KDI Co., Ltd that deal with subdivided housing unit and custom-built house in metropolitan area.
■ We acquired KUNIMOKU HOUSE Co., Ltd that expand the housing business in Hokkaido.

Mail-order■ In July 2013, the mail-order business entry by a subsidiary of JIMOS Co., Ltd.
■ Providing various cosmetics for skin and hair care (Most of main customers are 40-60’s )■ “Clear esthe veil” won customer’s satisfaction No.1 for the 12 consecutive years in the market.
■ In May 2016, we acquired BELAIR Co., Ltd that deal with nourishing auxiliary food.
31

FY2016 Sales and Operating income Breakdown

4
CleClaRentalConstruction Consulting

Housing
Sales

50％

Mail-order

CreClaHousing sales

RentalConstruction Consulting

CreCla

CreCla

15％

14％

Sales
85,901 million

RentalConstruction
Consulting

15％

48％

Operatingincome756 million

Construction
Consulting

Rental92％

Housing
Sales

▲31％

7％
Mail-order

Mail-order

12％

▲23％
※except HQ-costs

Operating margin on sales
CreClaRentalConstruction
Consulting

Mail-order

Housing
sales

Total

2.1%

14.1%

15.7%

▲4.4％

▲1.5%

1.3%
32

4

Operating income trend by segment
Invested for expanding
marketAccelerated store
openings
-412

-622

（Million Of yen）
1,000

500

【Mail-order】

Actively
advertising
investment-199-222 -10550

003/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3
(Ex)
-500

-457

We focus on aggressive investment toward growth centering on the Rental Business and the Construction
Consulting Business, which show stable business performance.
33