Nitori : 英文

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Three Months Ended June 30, 2023

[Japanese GAAP]

August 8, 2023

Company name:

Nitori Holdings Co., Ltd.

Stock exchange listing: Tokyo, Sapporo

Code number:

9843

URL:

https://www.nitorihd.co.jp/

Representative:

Toshiyuki Shirai

President and Chief Operating Officer

Contact:

Masaomi Zenji

Executive Officer, General Manager, Accounting and Finance Division

Phone:

[phone]

Scheduled date of filing quarterly securities report:

August 8, 2023

Scheduled date of commencing dividend payments:

-

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session:

Yes (for institutional investors and analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

June 30, 2023

218,504

0.9

32,973

(10.7)

33,518

(9.3)

22,913

(8.1)

May 20, 2022

216,648

0.6

36,917

(13.7)

36,971

(14.9)

24,942

(14.3)

(Note) Comprehensive income:	Three months ended June 30, 2023:
	Three months ended May 20, 2022:

¥	26,767 million	[	(18.8) %]
¥	32,959 million	[	(1.7) %]

	Basic earnings	Diluted earnings per
	per share	share
Three months ended	Yen	Yen
June 30, 2023	202.76	-
May 20, 2022	220.85	-

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
June 30, 2023	1,112,912		836,590	75.2
March 31, 2023	1,133,771		818,096	72.2
(Reference) Equity: As of	June 30, 2023:	¥	836,590 million
As of	March 31, 2023:	¥	818,096 million

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2. Dividends

										Annual dividends
						1st		2nd			3rd			Year-end			Total
					quarter-end		quarter-end		quarter-end
						Yen			Yen				Yen		Yen		Yen
Fiscal year ended March 31, 2023		-		73.00				-		73.00		146.00
Fiscal year ending March 31, 2024		-
Fiscal year ending March 31, 2024				75.00				-		75.00		150.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently:	No
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)
								(% indicates changes from the previous corresponding period.)
															Profit attributable	Basic earnings
			Net sales		Operating profit	Ordinary profit		to owners of
					per share
															parent
Six months ending			Million yen		%	Million yen	%	Million yen		%		Million yen		%		Yen
		440,200		4.0	64,100	(7.2)		65,000		(7.7)		44,500		(13.5)	393.76
September 30, 2023
Full year			932,000		(1.7)	145,100	3.6	147,000		2.0		100,000		5.1	884.86
(Note) Revision to the financial results forecast announced most recently:	No
* Notes:
(1) Changes in significant subsidiaries during the three months ended June 30, 2023
(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:															)
Exclusion:	-	(Company name:															)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

June 30, 2023:	114,443,496	shares
March 31, 2023:	114,443,496	shares
2) Number of treasury shares at the end of the period:
June 30, 2023:	1,431,541	shares
March 31, 2023:	1,431,761	shares

3) Average number of shares outstanding during the period:
Three months ended June 30, 2023:	113,011,758	shares
Three months ended May 20, 2022:	112,936,675	shares

*Quarterly financial results reports are not required to be subjected to quarterly reviews.

*Explanation for appropriate use of financial forecasts and other special notes

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 don't commit to achieve these forecasting numbers. Actual results may differ from these forecasts by a variety of reasons.

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Million yen)
			As of March 31, 2023	As of June 30, 2023
Assets
	Current assets
		Cash and deposits	131,928	127,734
		Notes and accounts receivable - trade	57,408	43,727
		Merchandise and finished goods	112,401	100,149
		Work in process	479	682
		Raw materials and supplies	7,496	6,440
		Other	20,641	16,199
		Allowance for doubtful accounts	(1)	(8)
		Total current assets	330,353	294,925
	Non-current assets
		Property, plant and equipment
		Buildings and structures, net	203,356	205,224
		Land	377,009	384,144
		Other, net	69,113	76,422
		Total property, plant and equipment	649,479	665,791
		Intangible assets
		Goodwill	19,619	18,979
		Other	13,386	13,300
		Total intangible assets	33,005	32,279
		Investments and other assets
		Investment securities	39,089	39,899
		Long-term loans receivable	562	551
		Guarantee deposits	16,893	16,869
		Leasehold deposits	30,313	30,280
		Deferred tax assets	21,765	20,518
		Other	12,379	11,867
		Allowance for doubtful accounts	(72)	(72)
		Total investments and other assets	120,932	119,915
		Total non-current assets	803,417	817,986
	Total assets	1,133,771	1,112,912
Liabilities
	Current liabilities
		Notes and accounts payable - trade	38,459	32,758
		Short-term borrowings	83,068	86,068
		Lease obligations	1,602	1,600
		Accounts payable - other	24,058	26,677
		Income taxes payable	28,351	12,071
		Contract liabilities	23,774	15,843
		Provision for bonuses	8,380	10,141
		Provision for point card certificates	11	11
		Provision for shareholder benefit program	422	290
		Provision for loss on business liquidation	220	221
		Other	13,419	13,543
		Total current liabilities	221,769	199,228

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				(Million yen)
			As of March 31, 2023	As of June 30, 2023
	Non-current liabilities
		Long-term borrowings	57,330	40,796
		Lease obligations	4,598	4,218
		Provision for retirement benefits for directors (and	228	228
		other officers)
		Retirement benefit liability	5,886	5,827
		Asset retirement obligations	14,800	14,952
		Other	11,060	11,069
		Total non-current liabilities	93,905	77,093
	Total liabilities	315,674	276,322
Net assets
	Shareholders' equity
		Share capital	13,370	13,370
		Capital surplus	30,711	30,715
		Retained earnings	771,743	786,378
		Treasury shares	(10,111)	(10,111)
		Total shareholders' equity	805,714	820,353
	Accumulated other comprehensive income
		Valuation difference on available-for-sale securities	1,769	3,142
		Deferred gains or losses on hedges	(1,829)	-
		Foreign currency translation adjustment	12,479	13,145
		Remeasurements of defined benefit plans	(36)	(51)
		Total accumulated other comprehensive income	12,382	16,236
	Total net assets	818,096	836,590
Total liabilities and net assets	1,133,771	1,112,912

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the three months)

				(Million yen)
			For the three months	For the three months
			ended May 20, 2022	ended June 30, 2023
Net sales	216,648	218,504
Cost of sales	105,032	107,452
Gross profit	111,616	111,052
Selling, general and administrative expenses	74,698	78,078
Operating profit	36,917	32,973
Non-operating income
	Interest income		122	270
	Dividend income	-	256
	Foreign exchange gains		124	166
	Subsidy income	79	53
	Vending machine income		80	76
	Gain on sales of goods	56	71
	Other		281	309
	Total non-operating income	744	1,203
Non-operating expenses
	Interest expenses	90	127
	Share of loss of entities accounted for using equity		474	496
	method
	Other	124	34
	Total non-operating expenses		689	658
Ordinary profit	36,971	33,518
Extraordinary income
	Gain on sale of non-current assets	5	0
	Total extraordinary income		5	0
Extraordinary losses
	Loss on sale and retirement of non-current assets		8	11
	Impairment losses	453	327
	Loss on change in equity		1	-
	Total extraordinary losses	463	339
Profit before income taxes	36,513	33,180
Income taxes	11,571	10,266
Profit	24,942	22,913
Profit attributable to owners of parent	24,942	22,913

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