NITORI : 英文

NITORI Holdings Co., Ltd.

Financial Results Presentation for the Third Quarter of FY2023

February 8, 2024

Overview of Consolidated Financial Results

(100 million yen）

		Q1-Q3 FY2023	Q1-Q3 FY2022	Prior Period
		（2023.4.1-2023.12.31）	（2022.2.21-2022.11.20）	Comparison
		Actual	To sales	Actual	To sales	Change	YoY
	Net sales	6,637	-	6,317	-	319	105.1％
	Gross profit	3,394	51.1％	3,219	51.0％	174	105.4％
	SG&A expenses	2,415	36.4％	2,269	35.9％	146	106.5％
	Operating income	978	14.7％	950	15.0％	28	103.0％
	Ordinary income	1,012	15.3％	975	15.4％	37	103.8％
	Profit attributable	685	10.3％	665	10.5％	20	103.0％
	to owners of parent
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Summary of Financial Results

by Reporting Segment

(100 million yen）

Q1-Q3 FY2023	Q1-Q3 FY2022	Prior Period
（2023.4.1-2023.12.31）	（2022.2.21-2022.11.20）	Comparison
Actual	To sales	Actual	To sales	Change	YoY

Net sales

5,795 -

5,447 -

348 106.4%

NITORI

business

Operating	948	16.4%	911	16.7%	37	104.1%
income

Net sales

911 -

924 -

-12 98.6%

Shimachu

business

Operating	26 2.9%	34 3.8%	-8 74.4%
income

*The Shimachu business's operating income for the current and previous periods includes 2.5 billion yen in amortization of both goodwill and unrealized gains on buildings.

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Consolidated Ordinary Income (YOY)

• Impact of gross profit improvement, etc.
• Impact of increase in net sales, etc.

＋392

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

-351

• 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)

		+122	-54
				+23	-89
			Personnel	Logistic
			expenses,
			expenses		-6
			etc.		1,012
975	Exchange	Trade cost,			Others	Shimachu	Shimachu
Shimachu	rate impact	etc.				consolidated	31
Gross profit
38	increase

	• Purchase foreign	• Impact of reduced trade
	exchange impact -261
NITORI	costs
• Inventory exchange
937
	impact -90

Q1-Q3 FY2022

Ordinary income

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• Including amortization

of goodwill, etc.	NITORI
	981

Q1-Q3 FY2023

Ordinary income

4

Gross Profit and SG&A Expenses

SG&A		Amount	YOY	Ratio to	Change
expenses		sales
Personnel		732	107.8%	11.0％	+0.3pt
expenses
Rents		361	103.4%	5.4％	-0.1pt
Shipping and		233	88.7%	3.5％	-0.6pt
delivery costs
Advertising		154	115.0%	2.3％	+0.2pt
expenses
Gross profit margin ratio
53.0%	-4.5pt		+5.7pt

-1.6pt

(100 million yen)

SG&A	Amount	YOY	Ratio to		Change
expenses	sales
Outsourcing	141	105.9%	2.1％		+0.0pt
expenses
Depreciation	165	108.8%	2.5%		+0.1pt
	Capital investment, etc.
Capital investment				945
Others						1H
			NITORI Group
+0.4pt	53.0%	-1.9pt		51.0%
					+0.1pt
				51.1%

• FX impact		• Impact of gross
applied to the	• FX impact	profit improvement
purchase	applied to the	+3.3pt
(125.45 yen	inventory	• Impact of reduced	Shimachu
⇒145.49 yen)		trade costs +2.4pt
Q1-Q3 FY2022			Q1-Q3 FY2023	Q1-Q3 FY2023
NITORI segment			NITORI segment	NITORI Group
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Consolidated Balance Sheets

							(100 million yen)
		Accounts	December 31,	March 31,	Change	Major factors in changes
		2023	2023
	Current assets	3,224	3,303		-78
		Cash and deposit	1,296	1,319		-23
		Inventory	1,066	1,203		-137	Inventory -121
	Non-current assets	8,736	8,034		702
		Property, plant and equipment	7,218	6,494		724	Land +217
		Investment and other assets	312	330		-17
Total assets	11,961	11,337		623
	Current liabilities	2,427	2,217		209
		Accounts payable-trade	404	384		20
		Short-term loans payable	1,173	830		342
	Non-current liabilities	724	939		-214
		Long-term loans payable	350	573		-223
Total liabilities	3,151	3,156		-5
Total net assets	8,809	8,180		628	Retained earnings +518
Total liabilities and net assets	11,961	11,337		623
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Number of Stores as of Dec. 31, 2023

		End of	Net	End of 3Q
		FY2022	increase	FY2023
	NITORI	494	21	515
J	EXPRESS	29	5	34
A	DECOHOME	167	0	167
P
N plus	30	9	39
A
N	Shimachu	53	1	54
	Subtotal	773	36	809

Total 979 stores

+77 stores from the end of FY2022

	Taiwan	53	7	60
	Mainland China	67	25	92
O	USA	1	-1	0
V
Malaysia	7	3	10
E
Singapore	1	0	1
R
S	Thailand	0	4	4
E
Hong Kong	0	1	1
A
S	Korea	0	1	1
	Vietnam	0	1	1
	Subtotal	129	41	170
	Total	902	77	979

Mainland China

+25 stores

Hong Kong

+1 store

Southeast Asia

+8 stores

		USA
Korea
	-1 store
+1 store

Japan

+36 stores

Taiwan

+7 stores

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Major Indicators of Management Efficiency (1）

				No.	Indicator	Unit Target		2023.12	2022.11	2021.11	2020.11	2019.11
				1	Return on assets	％	Over 11.25％	×	8.7	9.4	11.6	16.6	13.5
				2	Total asset turnover	Times	Over 1.5	×	0.57	0.61	0.64	0.75	0.75
		G
	3	Ordinary income	％	Over 10％	○	15.3	15.4	18.2	22.2	17.9
		R	margin
		O		4	Earnings per share	¥	Over ¥75	○	606.4	588.9	670.9	680.7	511.9
		U
	5	Return on equity	％	Over 11.25％	×	8.07	8.73	11.21	12.9	11.0
		P
				6	Equity ratio	％	Over 60％	○	73.7	72.5	73.2	82.6	82.8
		-		7	Interest coverage	Times	Over 20	○	413	656	374	1,804	1,083
				8	Sales growth rate	％	Over 10％	×	5.1	4.2	12.2	12.2	7.3
				9	Ordinary income	％	Over 10％	×	3.8	-11.7	-7.7	39.1	8.0
				growth rate
				10	Ratio of gross profit	％	Over 48％	○	51.1	51.0	52.8	57.1	54.8
				to sales
				11	Ratio of break-even	％	Under 80％	○	67.2	66.2	62.5	57.3	63.7
				point to sales

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Major Indicators of Management Efficiency（2）

		No.	Indicator	Unit	Target		2023.12	2022.11	2021.11	2020.11	2019.11
	S	12	Sales per tsubo	K	Over ¥950K	○	1014	1012	1016	1150	1060
	A
	L
	E	13	Stock turnover	Times	Over 9	×	4.5	4.9	5.6	5.7	5.3
	O
	F	14	Operating assets turnover	Times	Over 2.9	×	2.7	3.2	3.4	3.5	3.4
	F
	U	15	Ratio of profit distribution	％	Over 20％	○	33.5	33.3	38.4	38.6	32.0
	R
	N
	I	16	Ratio of real estate cost to		Under 25％	○	23.3	22.6	21.2	18.9	21.2
	T	％
	U		gross profit
	R		Ratio of sales promotion			○	5.4	4.7	4.5	4.3	5.5
	E	17	％	Under ６％
	cost to gross profit
	A
						20.62
	N	18	Labor productivity	M	Over ¥10M	○	20.85	20.60	22.97	19.63
	D
	H	19	Sales floor per labor	Tsubo	Over 60	×	38.3	39.3	37.0	35.8	34.6
	O
	M
	E	20	Operating income per tsubo		Over ¥150K	○	169	166	201	236	169
		K
	F
	U	21			Under ¥90K	×	114.1	103	80	87	91
	N
	R		Stock per tsubo	K
	I
	S	22	Average age of labor	Age	30-35	○	34.0	33.8	33.1	33.3	33.4
	H
	I
	N		Results ( 〇 won / × lost )		〇13 ×9	〇14 ×8	〇17 ×5	〇19 ×3	〇15 ×7
	G

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NITORI Segment Topics