Trusco Nakayama : Business Performance Date Analysis2023(JAN 1 2023-DEC 31 2023)

The 61st Business Year Business Performance Data Analysis

FYE December 31, 2023

Published by:	(Securities code: 9830)
Business Administration Headquarters, Corporate Planning Division, Public Relations & IR Section
Trusco Fiorito Bldg. 10th floor, 4-28-1, Shinbashi, Minato-ku, Tokyo 105-0004, Japan
TEL：[phone]	FAX：[phone]
E-mail: [e-mail]	1

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Table of Contents

01. Company Profile ……………………… P.3

Company overview

Business flow

02. Company-wide Business …………… P.6

Performance

Accounting highlights

[Consolidated] Business performance

[Consolidated] Monthly sales

[Consolidated] Monthly sales by sales route

03. Sales Performance ………………… P. 11

[Consolidated] Business performance by sales route [Non-consolidated] Sales by category of goods

[Non-consolidated] Changes in sales by category of goods (small category)

[Non-consolidated] Sales of private brand (PB) goods

This document contains statements regarding future forecasts of business performance and business plans. Such statements are not guarantees of future performance and involve risks and uncertainties.

Please note that future performance may differ from the planned figures due to changes in the management environment and other factors. This document is for informational purposes only and the Company is under no obligation to update it with the latest information available at this time.

04. Financial and Other Performances …… P. 20

[Consolidated] Selling, general and administrative expenses (SGA)

[Consolidated] Details of selling, general and administrative expenses (SGA)

[Consolidated] Financial statements and financial indicators

[Consolidated] Capital expenditures

[Consolidated] Quarterly business performance and budget (quarterly) (cumulative)

05. Various key indicators …………………… P. 27

Merchandise / Logistics / Sales / Digital / Human Resources

06. Management Plan ………………………… P. 34

[Consolidated] Full-year Management plan for the 62nd business year

[Consolidated] 62nd Business Year Management plan by sales route

[Consolidated] Selling, general and administrative expenses (SGA) for the 62nd business year

[Consolidated] List of 62nd Business Year capital expenditure plans

[Consolidated] 62nd business year quarterly budget (quarterly) (cumulative) Vision - Medium-term management ability targets -

07. ESG Information	………………………… P. 43
Trusco's "Gentleness for the Future" Project
Sustainability indicators
Relationship with society & corporate governance
08. Reference Information …………………… P. 48
Stock information
Index comparison in the industry		2
The Company's sales index and industrial production index

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

01

Company Profile

Company overview

Business flow

3

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Company overview

Corporate message

Company name	Trusco Nakayama Corporation
Founding	May 15, 1959
	Tetsuya Nakayama, President

Representative	Chairman, Nakayama Visually Impaired Welfare Foundation
Vice president, Japan Federation of Machine Tool Distributors Associations
	President, Osaka Machine Appliance Wholesaler Cooperative

"GAMBARE!!

JAPANESE MONODZUKURI".

Head offices	Tokyo Head Office (Minato-ku, Tokyo, registered as official headquarters)
Osaka Head Office (Nishi-ku, Osaka City)

	94 in total:
Number of offices	89 domestic bases: (2 head offices, 59 domestic sales branches, 28 domestic distribution centers)
5 overseas bases: (Local subsidiaries: Trusco NAKAYAMA CORPORATION (THAILAND)
	LIMITED, Trusco NAKAYAMA CORPORATION (INDONESIA) LIMITED,
	Supplier development office: Germany, Taiwan, Thailand)
Capital stock	5,022,370,000 yen

Listed stock exchange Prime Market of the Tokyo Stock Exchange (Code number: 9830)

Number of employees	3,043 (consolidated)
Credit rating	Single A (Rating and Investment Information, Inc.)
	Wholesale of all kinds of factory auxiliary materials (pro-tools), including working tools,
Line of business	measuring tools, and cutting tools needed in production. The company's mission is to improve
the convenience of materials procurement at manufacturing sites through the general catalog
	"Trusco Orange Book" and the search site "Trusco Orange Book.Com."
	As of end of December 2023

Tokyo Head Office: Trusco Fiorito Bldg.

(Minato-ku, Tokyo)

4

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Business flow

Manufacturers

3,509 companies

Wholesale

Connecting an outlet to

DistributorsUsers

Retail 5

,6

32 companies

∞ (infinite)

Factory route

Domestic suppliers

Approx. 3,1723,046companies

	Overseas
32	330

32 countries, 337

companies

Ireland, United States, United

Kingdom, Italy, Israel, India, Estonia,

Austria, Netherlands, Canada,

Greece, Singapore, Switzerland,

Sweden, Spain, Sri Lanka, Slovakia,

Thailand, Czech Republic, Denmark,

Germany, New Zealand, France,

Vietnam, Belgium, Poland, Portugal,

Malaysia, Norway, South Korea,

Taiwan, China

Trusco is an easy way to

take advantage of our

resources.

Merchandise Logistics

SalesDigital

We deliver our products to factories, construction sites, and other manufacturing sites through machine tool dealers, etc.

e-businessroute

The products are delivered to factories and consumers through Internet order companies.

Home center route

We deliver our products to consumers through home centers and pro-tool shops.

Overseas route

We deliver our products to manufacturing sites around the world.

Manufacturers, construction companies, etc.

Manufacturers, general consumers, etc.

Businesses conducting outdoor work, general consumers, etc.

Overseas manufacturers, etc.

As of end of December 2023

5

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

02

Company-wide

Business

Performance

Accounting highlights

[Consolidated] Business performance

[Consolidated] Monthly sales

[Consolidated] Monthly sales by sales route

6

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

Accounting highlights

• Full-yearPerformance in the 61st business year

Net sales	268,154 million yen	• Strengthening of measures that contribute to improved customer convenience and reduced environmental
(YoY change +8.8%)	impact, including "Niawase + Yuchoku" (assortment & direct delivery to users), which holds an abundant
	inventory of approximately 590,000 items and utilizes state-of-the-art distribution equipment
Gross profit	57,522 million yen	• The impact of increased profit margins on sales of inventory purchased at the old prices, before the price
(YoY change +10.3%)	increases, after the price revisions (approx. 2,300 million yen)
	• The impact from progress in purchase price pass-through to selling prices
Selling, general and		• Labor costs (+ approx. 1 billion yen, impact from achievement incentive payments and temporary bonus
39,003 million yen	payments)
administrative	• Freight and packaging expenses (+631 million yen, impact from increased sales and increased transportation
expenses (SGA)	(YoY change +4.0%)	costs)
		• Depreciation (-461 million yen)
Extraordinary loss	913 million yen	Recorded loss due to stock valuation review
		GROUND Inc. (-500 million yen), Cinnamon Inc. (-316 million yen)
Profit attributable to	12,268 million yen	• 15.4% year-on-year, due to gross profit margin increasing due to an increase in the selling price of inventory
owners of parent	(YoY change +15.4%)	purchased before the price revisions, and keeping selling, general and administrative expenses down relative
to the increase in sales.

• Full-yearOutlook for the 62nd business year

	Plan	Year-on-year	YoY Change
	change
Net sales	284,710 million yen	+6.2%	+16,555 million yen
Gross profit	59,760 million yen	+3.9%	+2,237 million yen
Selling, general and administrative	41,150 million yen	+5.5%	+2,146 million yen

Gross profit takes into account approximately

500 million yen in inventory valuation gains due to merchandise price increases.

Regarding selling, general and administrative expenses, we expect an increase in salaries and bonuses due to achievement incentives, etc., and

expenses (SGA)
Ordinary income	18,850 million yen	+1.0%	+180 million yen

an increase in freight and packaging expenses due to an increase in direct shipments to users.

7

Profit attributable to owners of parent	14,740 million yen	+20.1%	+2,472 million yen

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Business performance

	Actual results for FYE December 31, 2022	Actual results for FYE December 31, 2023
	(60th business year)	(61st business year)
			Year-on-year			Year-on-	Change
	Actual results	Share	Actual results	Share	year	from
	change
					change	budget (%)
Net sales	246,453 million yen	-	+8.6%	268,154 million yen	-	+8.8%	+0.8%
Gross profit	52,160 million yen	21.2%	+9.4%	57,522 million yen	21.5%	+10.3%	+1.0%
Selling, general and
administrative expenses	37,493 million yen	15.2%	+8.1%	39,003 million yen	14.5%	+4.0%	-0.1%
(SGA)
(depreciation included in	6,667 million yen	2.7%	-3.8%	6,206 million yen	2.3%	-6.9%	-3.1%
SGA)
Operating income	14,667 million yen	6.0%	+12.8%	18,519 million yen	6.9%	+26.3%	+3.3%
Ordinary income	15,065 million yen	6.1%	+11.1%	18,669 million yen	7.0%	+23.9%	+2.5%
Profit attributable to	10,626 million yen	4.3%	-8.4%	12,268 million yen	4.6%	+15.4%	+0.6%
owners of parent
Net income per share	161.15 yen	-	-14.71 yen	186.05 yen	-	+24.9 yen	+1.19 yen
Dividend per share	40.00 yen	-	+4.50 yen	46.50 yen	-	+6.50 yen	±0 yen
Private brand sales	45,876 million yen	18.6%	+5.6%	48,313 million yen	18.0%	+5.3%	-3.4%
Capital expenditures	4,799 million yen	-	-	13,469 million yen	-	-	-

Points

• Net sales
  YoY change +8.8%, Change from budget +0.8%
  Increase in sales due to inventory, logistics, digital structure and various efforts
• Gross profit margin
  Change from the end of previous fiscal year +0.3 pt
  The impact of increased profit on sales of inventory purchased at the old prices after the price revisions (approx. 2,300 million yen)
• Selling, general and administrative expenses (SGA)
  YoY change +4.0%, Change from budget -0.1%
  (Increase) Labor cost, freight and packing expenses, etc.
  (Decrease) Depreciation, etc.
• Profit attributable to owners of parent YoY change +15.4%, Change from budget +0.6%
  Sales expansion, gross profit margin increase, etc.

8

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Monthly sales

26,000			25,485
														23,979
24,000						23,099					23,699	23,892
							22,183
22,000		21,597		21,566		22,161
					20,848
				20,741
20,000	18,899
18,000		+11.5		+11.4
16,000		+7.7	+12.2	+6.6	+10.1		+6.4	+11.8
				+8.2
									+7.5	+8.5
14,000	+4.3
12,000
10,000
8,000
6,000
4,000												Net sales (million yen)
2,000												Year-on-year change (%)
0
	January	February	March	April	May	June		July	August	September	October	November	December

January

February

March

April

May

June

July

August

September

October

November

December

Total

Sales per day

995

1,137

1,158

1,078

1,037

1,050

1,108

948

1,109

1,129

1,195

1,142

-

(million yen)

Year-on-year

-1.2

+5.6

+7.7

+11.4

+12.2

+6.6

+10.1

+8.2

+6.4

+6.5

+ 7.5

+ 13.6

-

change (%)

Number of

19

19

22

20

20

22

20

22

20

21

20

21

246

business days

(days)

Year-on-year

+1

+1

±0

±0

+1

±0

±0

±0

±0

+1

±0

-1

+3

change (days)

• Orders are constantly placed for consumables used in factories. As such, we place focus on the sales per day.
  Our sales increase during the peak periods of March when many companies close their accounts.

9

Copyright 2024 TRUSCO NAKAYAMA Corporation. All rights reserved.

[Consolidated] Monthly sales by sales route

e-business route

	5,462			5,325	5,281	5,310
		5,050
4,814	4,789	4,876	4,895
4,241	4,553			4,520

January

February

March

April

May

June

July

August

September

October

November

December

Total

Number of

19

19

22

20

20

22

20

22

20

21

20

21

246

business days

YoY change

+1

+1

±0

±0

+1

±0

±0

±0

±0

+1

±0

-1

+3

+10.9

Factory route

+19.2

+17.5

+17.4

+13.1

+12.5

+9.7

+14.5

+12.3

+21.6

+14.7	+12.9

Net sales (million yen)

Year-on-year change (%)

17,688

January

February

March

April

May

June

July

August

September

October

November December

16,114

16,385

15,922

15,817

14,784

14,575

15,032

Home center route

2,310

15,141

13,825

14,103

2,146

2,254

2,112

2,036

2,069

12,795

2,031

1,995

1,889

1,829

1,882

1,701

+ 18.1

+ 16.7

+ 17.0

+ 17.5

+ 13.5

+ 9.2

+ 13.0

+ 8.9

+ 9.5

+ 5.5

+ 8.5

+ 7.7

+ 7.4

+ 4.6

+ 5.8

+ 8.3

+ 8.5

+ 6.3

+ 5.4

+ 2.6

+ 3.7

+ 1.6

+ 2.1

+ 0.7

Net sales (million yen)

Net sales (million yen)

Year-on-year change (%)

Year-on-year change (%)

January

February

March

April

May

June

July

August

September

October

November December

January

February

March

April

May

June

July

August

September

October

November December

10

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