NAFCO Co.,Ltd.

The Group is a retailer whose principal business is the sale of materials, DIY and gardening products, household goods, furniture, and home fashion products. Its store network, initially concentrated in the Kyushu and Chugoku regions, has expanded into the Kansai, Chubu, and Kanto regions. As of 31 March 2026, the Group operated 73 stores in Fukuoka Prefecture, 29 in Kumamoto Prefecture, 26 in Yamaguchi Prefecture, 24 in Nagasaki Prefecture, 23 in Hiroshima Prefecture, 21 in Kagoshima Prefecture, 19 in Hyogo Prefecture, 17 in Miyazaki Prefecture, 16 in Oita Prefecture, 14 each in Okayama and Saga prefectures, 10 in Shizuoka Prefecture, 9 in Shimane Prefecture, 8 in Shiga Prefecture, 6 in Osaka Prefecture, 4 each in Tottori, Mie, Nagano, Chiba, and Ibaraki prefectures, and 30 stores in 14 other prefectures, for a total of 359 stores. From the fiscal year under review, the classification of reportable segments has been changed, and the Group is promoting improvements in the initial markup rate and quality of private-label products, expansion of imported products, improved inventory control, and the use of information systems utilizing POS data. Its stores are primarily large suburban outlets, targeting both general consumers and professional contractors. The Group's basic business model is built around three core categories, namely materials, DIY and gardening products, household goods, and furniture and home fashion products, and aims to offer the leading assortment, prices, and quality in each local market. Going forward, the Group plans to establish a dominant presence by making use of four store formats: combined stores, standalone home centers, standalone small-format home centers with 300 tsubo of sales floor space, and standalone Two-One Style stores. It will also continue expanding and remodeling existing stores. As part of its sustainability initiatives, the Group is promoting the introduction of LED lighting, installation of solar power generation systems, execution of agreements to supply goods during disasters, and environmental and human rights initiatives in its day-to-day operations. It is also working to promote diversity, including by increasing the proportion of women in management positions and encouraging employees to take childcare leave. As a major development, the store strategy for the period from 1 April 2025 to 31 March 2026 focused on revitalizing existing stores through expansion and remodeling, strengthening the establishment of a dominant presence in the Kyushu, Chugoku, Kansai, and Chubu regions, and expanding the Group's trading area into the Kanto region and other areas. As of the end of the fiscal year ending March 2026, the Group operated 359 stores across 34 prefectures. Key points in the Group's history, including the treatment of consolidated financial statements, changes in the application of the equity method, the expansion and reorganization of its store network, and changes in its listed market, are set out separately in the corporate history.