NITORI : 英文

NITORI Holdings Co., Ltd.

Financial Results Presentation for the Second Quarter of FY2023

November 10, 2023

Overview of Consolidated Financial Results

								（100 million Yen）
		1H FY2023		1H FY2022		Prior Period
		（2023.4.1-2023.9.30）	（2022.2.21-2022.8.20）	Comparison
		Actual		To sales	Actual		To sales	Change	YoY
	Net sales	4,168		-	4,230		-	▲62	98.5％
	Gross profit	2,117		50.8％	2,171		51.3％	▲54	97.5％
	SG&A	1,565		37.6％	1,481		35.0％	84	105.7％
	expenses
	Operating	551		13.2％	690		16.3％	▲138	79.9％
	income
	Ordinary	569		13.7％	704		16.6％	▲135	80.8％
	income
	Profit	380			514			▲134
	attributable to		9.1％		12.2％	73.9％
	owners of parent
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Summary of Financial Results

by Reporting Segment

						(100 million yen）
		1H FY2023	1H FY2022	Prior Period
		（2023.4.1-2023.9.30）	（2022.2.21-2022.8.20）	Comparison
		Actual	To sales	Actual	To sales	Change	YoY
	Net sales	3,618	-	3,639	-	-21	99.4%
NITORI
business	Operating	531	14.7%	662	18.2%	-130	80.3%
	income
	Net sales	594	-	626	-	-32	94.9%
Shimachu
business	Operating	17	2.9%	25	4.0%	-8	68.0%
	income

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Consolidated Ordinary Income (YOY)

• Impact of increase in gross profit, etc.

+116

704

• Impact of logistics efficiency improvement, etc.
  →Improved delivery efficiency, shipping packaging efficiency, etc.

-247

• Increase in store fixtures expense, etc. due to aggressive store opening
• Increase in outsourcing costs for IT personnel
• Increase in advertising expenses due to sales promotion enhancement, etc.

(100 million yen)

Shimachu	Gross profit
increase
27

NITORI	Exchange
677
rate impact

• Purchase foreign exchange impact -238
• Inventory exchange impact -9

1H FY2022

Ordinary income

+72 -33+19

Personnel Logistic

expenses expenses, etc.

Trade cost,

etc.

• Impact of reduced trade costs

-55

-7569

Others Shimachu Shimachu

consolidated 20

• Including amortization	NITORI
of goodwill, etc.
549
	1H FY2023
	Ordinary income

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Gross Profit and SG&A Expenses

SG&A	Amount	YOY	Ratio to	Change
expenses	sales
Personnel	478億円	108.0%	11.5％	+1.0pt
expenses
Rents	237億円	104.0%	5.7％	+0.3pt
Shipping and	151億円	83.1%	3.6％	▲0.7pt
delivery costs
Advertising	98億円	115.1%	2.4％	+0.3pt
expenses

(100 million yen)

SG&A	Amount	YOY	Ratio to	Change
expenses	sales
Outsourcing	94億円	105.9%	2.3％	+0.2pt
expenses
Depreciation	108	113.2%	2.6%	+0.3pt
	Capital investment, etc.
Capital investment				586

	Gross profit margin ratio			Others			1H
					NITORI Group
							52.7%
53.6%	-6.6pt				+0.3pt		51.3%
	+5.6pt	-0.9pt	-1.9pt	-0.5pt
							50.8%
			-0.2pt
		• FX impact			• Impact of gross
		applied to the	• FX impact	profit improvement
		purchase	applied to the	+3.6pt
		(115.99 yen	inventory	• Impact of reduced		Shimachu
		⇒144.72 yen)			trade costs +2.0pt
	1H FY2022						1H FY2023		1H FY2023
	NITORI segment				NITORI segment	NITORI Group
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Consolidated Balance Sheets

							(100 million yen)
		Accounts	September	March 31,	Change	Major factors in changes
		30, 2023	2023
	Current assets	3,072	3,303		▲231
		Cash and deposit	1,348	1,319		28
		Inventory	1,120	1,203		-83	Inventory -67
	Non-current assets	8,483	8,034		449
		Property, plant and equipment	6,964	6,494		469	Land +201
		Investment and other assets	317	330		▲12
Total assets	11,555	11,337		217
	Current liabilities	2,262	2,217		44
		Accounts payable-trade	425	384		40
		Short-term loans payable	839	830		8
	Non-current liabilities	713	939		▲225
		Long-term loans payable	350	573		▲223
Total liabilities	2,975	3,156		▲180
Total net assets	8,579	8,180		398	Retained earnings +297
Total liabilities and net assets	11,555	11,337		217
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Consolidated Cash Flows

						(100 million yen)
			1H FY2023	1H FY2022	Change	Major factors in changes
		Operating activities	867	524	342	Profit before income taxes		565
		Income taxes paid		-269
		Investing activities	▲648	▲671	23	Purchase of property,		-551
		plant and equipment
			▲309	▲264	▲44	Repayments of long-term		-215
		Financing activities	borrowings
			-82
						Dividends paid
		Other	17	37	▲19
	Net increase (decrease) in
	▲72	▲374	301
	cash and cash equivalents
		at end of period	1,178	896	282
	Cash and cash equivalents
			218	-147	366	activities）
		Free cash flow				（Operating activities and investing
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	Number of Stores as of Sept. 30, 2023
		End of	Net	End of 2Q	• Total at end of 2Q FY2023 : 944 stores
		FY2022	increase	FY2023
	NITORI	494	13	507	• Comparison to the end of
	FY2022: +42 stores
J	EXPRESS	29	3	32
A	DECOHOME	167	0	167
P
N plus	30	7	37		USA
A
Shimachu	53	0	53		-1
N
				Mainland
	Subtotal	773	23	796	Japan
	China
		53	5	58	+12	+23
	Taiwan
O
Mainland China	67	12	79		Hong Kong
V
	1	-1	0	Thailand	+1
E	USA	+1
					Taiwan
R	Malaysia	7	1	8
	+5
S	Singapore	1	0	1	Malaysia
E					+1
Thailand	0	1	1
A	Hong Kong	0	1	1
S
Subtotal	129	19	148
	Total	902	42	944

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Major Indicators of Management Efficiency (1）

G R O U P

（

1 H

）

No.	Indicator	Unit	Target		2023.9	2022.8	2021.8	2020.8	2019.8
1	Return on assets	％	Over 7.5％	×	5.0	7.1	8.3	11.4	9.0
2	Total asset turnover	Times	Over １	×	0.36	0.42	0.44	0.51	0.51
3	Ordinary income	％	Over 10％	○	13.7	16.6	19.1	22.4	17.6
margin
4	Earnings per share	¥	Over ¥50	○	336.6	455.5	477.4	441.7	328.1
5	Return on equity	％	Over 7.5％	×	4.5	6.8	8.1	8.5	7.2
6	Equity ratio	％	Over 60％	○	74.2	77.8	72.4	81.6	82.7
7	Interest coverage	Times	Over 20	○	352	711	761	1,796	1,094
8	Sales growth rate	％	Over 10％	×	-1.5	2.1	14.4	12.7	6.6
9	Ordinary income	％	Over 10％	×	-19.2	-10.9	-2.5	43.4	-0.4
growth rate
10	Ratio of gross profit	％	Over 48％	○	50.8	51.3	53.0	56.7	54.1
to sales
11	Ratio of break-	％	Under 80％	○	70.3	63.8	60.8	56.4	63.8
even point to sales

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Major Indicators of Management Efficiency （2）

		No.	Indicator	Unit	Target		2023.9	2022.8	2021.8	2020.8	2019.8
	S	12	Sales per tsubo	K	Over ¥950K	○	950	1024	1046	1165	1066
	A
	L
	E	13	Stock turnover	Times	Over 9	×	4.0	5.4	6.0	6.0	5.7
	O
	F	14	Operating assets turnover	Times	Over 2.9	×	2.6	3.5	3.7	3.7	3.8
	F
	U	15	Ratio of profit distribution	％	Over 20％	○	30.7	35.4	39.8	39.3	32.2
	R
	N
	I	16	Ratio of real estate cost to		Under 25％	○	24.4	21.8	20.5	18.4	21.3
	T	％
	U		gross profit
	R		Ratio of sales promotion			○	5.4	4.3	4.2	4.2	5.4
	E	17	％	Under ６％
	cost to gross profit
	A
						19.46
	N	18	Labor productivity	M	Over ¥10M	○	21.60	21.10	23.18	19.44
	D
	H	19	Sales floor per labor	Tsubo	Over 60	×	38.7	39.5	36.6	36.0	34.5
	O
	M
	E	20	Operating income per		Over ¥150K	×	143	182	217	241	169
		K
		tsubo
	F
	U	21			Under ¥90K	×	120.3	92	77	84	86
	N
	R		Stock per tsubo	K
	I
	S	22	Average age of labor	Age	30-35	○	33.9	33.4	32.9	33.0	33.1
	H
	I
	N		Results ( 〇 won / × lost )		〇12 ×10	〇14 ×8	〇18 ×4	〇19 ×3	〇16 ×6
	G

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