NITORI : 英文

NITORI Holdings Co., Ltd.

Financial Results Presentation for the FY2023

May 14, 2024

Overview of Consolidated Financial Results

(100 million yen）

		FY2023		FY2022		Prior Period
				Comparison
		Actual		To sales	Actual		To sales	Change	YOY
	Net sales	8,957		-	9,480		-	-522	94.5%
	Gross profit	4,559		50.9％	4,781		50.4％	-221	95.4％
	SG&A expenses	3,282		36.6％	3,380		35.7％	-98	97.1％
	Operating income	1,277		14.3％	1,400		14.8％	-123	91.2％
	Ordinary income	1,323		14.8％	1,440		15.2％	-117	91.9％
	Profit attributable	865		9.7％	951		10.0％	-86	91.0％
	to owners of
	parent
	Copyright 2024 Nitori Holdings All Rights Reserved	■ 不許複製印刷配布			2

Transition for Number of Stores

and Performance

	FY1994	FY2004	FY2014		FY2024
	Results	Results	Results		Results		9,480
Number of stores	24	100	331		1,001		1,440	8,957
Net sales							8,115
193	1,087	3,876		8,957		1,323
	7,169 1,418
(100 million Yen)
Ordinary income	15	130	635		1,323	1,384
(100 million Yen)		6,422
Ordinary income	7.8%	12.0%	16.4%		14.8%	1,095
margin		6,081
						5,7201,030
Sales (100 million yen)				5,129 948
		4,581 875
Ordinary income (100 million yen)
4,172 750
			3,876	679
			3,487	635
		3,310 621
		3,142	591
		2,861 535
		474

1,567

1,087 190

130

	43	103	177	308	489
0.5	1	5	13	19	35
'68.2'82.2'88.2'93.2'97.2'00.2'04.2'06.2'10.2'11.2'12.2'13.2'14.2'15.2'16.2'17.2'18.2'19.2'20.2'21.2'22.2'23.3'24.3

Copyright 2024 Nitori Holdings All Rights Reserved ■ 不許複製印刷配布	3

Summary of Financial Results

by Reporting Segment

		(100 million yen）
FY2023	FY2022	Prior Period
Comparison

	Actual	To sales	Actual	To sales	Change	YOY

		Net sales	7,854	-	8,217	-	-363	95.6%
NITORI
business
	Operating	1,250	15.9%	1,353	16.5%	-102	92.4%
		income
		Net sales	1,192	-	1,346	-	-154	88.6%
Shimachu
business		Operating	21	1.8%	41	3.1%	-20	51.3%
		income

*The Shimachu business's operating incomes for the current and previous periods include 3.3 billion yen and 3.6 billion yen, respectively, in amortization of both goodwill and unrealized gains on buildings.

Copyright 2024 Nitori Holdings All Rights Reserved ■ 不許複製印刷配布	4

Consolidated Ordinary Income (YOY)

▪ Purchase foreign	▪Impact of logistics efficiency	• Increase in store fixtures expense, etc. due to
exchange impact -261	improvement, etc.	aggressive store opening
▪ Inventory exchange	→Improved delivery efficiency,	• Increase in outsourcing costs for IT personnel
impact - 119	shipping packaging efficiency, etc.	• Increase in advertising expenses due to sales
	▪Impact of difference in delivery	promotion enhancement, etc.
	days, etc.	▪Impact of difference in delivery days, etc.

1,440	-252
Shimachu
45

(100 million yen)

				+85
		+424	+21
	-380			Logistic
		Personnel	expenses,
			expenses	etc.
	Net sales
NITORI	decrease
1,395
			▪Impact of reduced
			trade costs
			▪Impact of oil price
			decrease, etc.
	Exchange	Trade cost, improved
	rate impact	gross profit etc.
FY2022
Ordinary
income

+3 -18

Others Shimachu consolidated

• Including amortization of goodwill, etc.

1,323

Shimachu

27

NITORI

1,296

FY2023

Ordinary

income

Copyright 2024 Nitori Holdings All Rights Reserved ■ 不許複製印刷配布

5

Gross Profit and SG&A Expenses

	SG&A	Amount	YOY	Ratio to	Change
	expenses	sales
	Personnel		993	97.3%	11.1％	+0.3pt
	expenses
	Rents		487	94.3%	5.4％	-0.1pt
Shipping and		318	84.0%	3.6％	-0.4Pt
delivery costs
	Advertising		213	105.2%	2.4％	+0.3pt
	expenses
	Gross profit margin ratio
52.4%	-3.3pt		+4.5pt

-1.4pt

(100 million yen)

SG&A	Amount	YOY	Ratio to	Change
expenses	sales
Outsourcing	186	93.9%	2.1％	+0.0pt
expenses
Depreciation	220	99.1%	2.5%	+0.2pt
	Capital investment, etc.
Capital investment				1,321
Others					1H
			NITORI Group
	52.8%
				50.4%
+0.6pt	+0.4pt	-1.9pt		+0.5pt

50.9%

• FX impact	• FX impact	• Impact of oil
applied to the	prices decrease,
purchase	applied to the	etc. +2.4pt	Shimachu
(132.23 yen	inventory	• Impact of reduced
⇒146.60 yen)		trade costs +2.1pt
FY2022			FY2023	FY2023
		NITORI Group
NITORI segment		NITORI segment
Copyright 2024 Nitori Holdings All Rights Reserved	■不許複製印刷配布		6

Consolidated Balance Sheets

							(100 million yen)
		Accounts	March 31,	March 31,	Change	Major factors in changes
		2024	2023
	Current assets	3,477	3,303		173
		Cash and deposit	1,379	1,319		60
		Inventory	1,085	1,203		-118	Inventory-111
	Non-current assets	8,909	8,034		875
		Property, plant and equipment	7,368	6,494		874	Buildings and structures +674
			Land+262
		Investment and other assets	311	330		-18
Total assets	12,386	11,337		1,049
	Current liabilities	2,763	2,217		545
		Accounts payable-trade	482	384		98
		Short-term loans payable	1,075	830		244
	Non-current liabilities	660	939		-278
		Long-term loans payable	300	573		-273
Total liabilities	3,423	3,156		266
Total net assets	8,963	8,180		782	Retained earnings +697
Total liabilities and net assets	12,386	11,337		1,049
				■ 不許複製印刷配布		7
Copyright 2024 Nitori Holdings All Rights Reserved

Consolidated Cash Flows

						(100 million yen)
			FY2023	FY2022	Change	Major factors on changes
		Operating activities	1,435	913	521	Profit before income taxes	1,239
		Income taxes paid	-479
		Investing activities	-1,318	-1,325	7	Purchase of property,	-1,186
		plant and equipment
		Financing activities	-206	369	-575	Repayments of	-430
		long-term borrowings
		Other	10	22	-12
		Net increase	-78	-19	-58
	(decrease) in cash and
		cash equivalents
		Cash and cash
		1,173	1,251	-78
	equivalents at end of
		year
		Free cash flow	117	-411	528	(Operating activities and
						investment activities)
	Copyright 2024 Nitori Holdings All Rights Reserved ■ 不許複製印刷配布		8

Number of Stores as of Mar. 31, 2024

Ar	Type	End of	Net	End of	• Total at end of FY2023: 1,001
ea		FY2022	increase	FY2023	stores

	NITORI	523	33	556	• Comparison to the end of
J	NITORI EX
			FY2022: +99 stores
A	EXPRESS	167	7	174
P	DECOHOME	30	8	38
A	N plus	53	1	54				USA
N
Shimachu	773	49	822				-1 store
	Mainland
						Korea
						China
	Taiwan	53	8	61			+3 stores
	+28 stores
O	Mainland China	67	28	95	Hong Kong	Taiwan	Japan
USA	1	-1	0	+1 store	+8 stores	+49 stores
V
Malaysia	7	4	11
E	Thailand	Vietnam
R	Singapore	1	1	2	+5 stores	+1 store
S	Thailand	0	5	5	Malaysia	Singapore
E	Hong Kong	0	1	1	+4 stores	+1 store
A	Korea	0	3	3
S
Vietnam	0	1	1
	Subtotal	129	50	179
	Total	902	99	1,001

Copyright 2024 Nitori Holdings All Rights Reserved ■ 不許複製印刷配布	9

Major Indicators of Management Efficiency (1)

		No.	Indicator	Unit	Target		2024.3	2023.3	2022.2	2021.2	2020.2
		1	Return on assets	％	Over 15％	×	11.2	13.6	14.8	18.4	16.8
		2	Total asset turnover	Times	Over 2	×	0.76	0.90	0.85	0.94	0.99
		3	Ordinary income	％	Over 10％	○	14.8	15.2	17.5	19.5	17.1
			margin
		4	Earnings per share	¥	Over ¥100	○	765.6	841.9	856.7	825.2	635.4
	G	5	Return on equity	％	Over 15％	×	10.1	12.3	14.1	15.5	13.5
	R	6			Over 60％	○	72.4	72.2	74.5	76.8	82.0
	O	Equity ratio	％
	U	7	Interest coverage	Times	Over 20	○	381	622	654	1,465	1,031
	P
		8	Sales growth rate	％	Over 10％	×	-5.5	16.8	13.2	11.6	5.6
		9	Ordinary income	％	Over 10％	×	-8.1	1.6	2.5	27.9	6.3
		growth rate
		10	Ratio of gross profit	％	Over 48％	○	50.9	50.4	52.5	57.4	55.2
		to sales
		11	Ratio of break-even	％	Under 80％	○	68.0	66.5	63.8	62.6	65.8
		point to sales

*Results of Shimachu Corporation are included from fiscal year 2021.

Copyright 2024 Nitori Holdings All Rights Reserved ■ 不許複製印刷配布	10