Supplementary Explanatory Materials for the First Quarter Financial Results for the Fiscal Year Ending March 2027 | NAC CO.,LTD. (9788) timely disclosure

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64In focus

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Direction

Deterioration

Direction inferred from the company’s description.

Scale

-541

¥ million (year-on-year change in net sales)

Wording

Conditional

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 202714 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥12,534 million-4.1%

Operating profit¥-55 million

Ordinary income¥-61 million

Net income¥-266 million profit attributable to owners of the parent

Gross Profit Margin51.5%

Operating profit margin-0.4%

Selling, general and administrative expenses¥6,507 million

Results for the three months of the current quarter

Net Sales¥12,534 million

Operating profit-¥55 million

Ordinary income-¥61 million

Profit attributable to owners of parent for the quarter-¥266 million

Full-year earnings forecast

Net Sales

¥63,500 million

Operating profit

¥2,800 million

Ordinary income

¥2,800 million

Profit attributable to owners of the parent

¥1,700 million

EPS

¥40.67

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Change in gross profit-¥104 million
Personnel expenses+¥49 million
Depreciation and amortization, and amortization of goodwill+¥36 million
Rent+¥15 million
Service supplies expenses-¥18 million
Other SG&A expenses+¥8 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Quantitative assumptions for exchange rates, raw material prices, interest rates and other factors are not disclosed. The materials refer to uncertainties including the economic environment, competitive conditions and the success or otherwise of new services.

New initiatives

Investment in new store openings, new services and promotional activities
Promotion of new business development and M&A
Improving customer retention and LTV through the introduction of multi-year plans
Expanding the introduction of CrePF among franchisees
Support for the use of AI and DX tools and development of versatile AI products
Customer acquisition in the Beauty and Health business through advertising investment
Investment in human capital and development of group-wide CRM

Key KPIsA metric the company considers important as a management benchmark.

Number of Crecla franchiseesApproximately 400 companies
Number of Nac member construction companiesApproximately 7,000 companies
Million Customer initiativeMore than 1 million households
Sales ranking among Duskin franchiseesNo.1
Value-for-money rating for water purifiers with built-in filtrationNo. 1

Unit price and quantity metricsThese figures show sales broken down by price and volume.

Bottle consumption per CreCla customerIncreased
Year on year against the same period last yearIncreased
Number of putio customersIncreased
Year on year against the same period last yearIncreased
Number of orders for subsidy-eligible productsIn line with the prior-year period
Year on year against the same period last yearUnchanged

Segment results

CreCla Business
Net Sales¥3,882 million (up 2.8% year on year)
Operating profit¥435 million (up 36.0%)
Rental Business
Net Sales¥4,568 million (up 2.2% year on year)
Operating profit¥365 million (up 34.6%)
Architectural Consulting Business
Net Sales¥794 million (down 29.1% year on year)
Operating profit-¥244 million
Housing Business
Net Sales¥1,328 million (down 27.6% year on year)
Operating profit-¥233 million
Beauty and Health Business
Net Sales¥1,578 million (up 1.9% year on year)
Operating profit¥74 million (down 1.6%)
Other
Net Sales¥474 million (up 17.1% year on year)
Operating profit▲¥91 million

Medium-term management plan targets

Plan nameMedium-Term Management Plan 2028

Target fiscal yearFiscal year ending March 2028

Net Sales¥68,500 million

Operating profit¥3,300 million

Cash AllocationOperating cash flow of at least ¥10 billion, ¥3 billion in maintenance investment, at least ¥6 billion in growth investment, and at least ¥3 billion in shareholder returns

Financial targets

DOE4% (payout ratio of no more than 100%)

Market Size / Share

No. 1 in sales among Duskin franchise dealers (out of approximately 1,900), and No. 1 in value-for-money ratings for water purifiers with built-in filtration

Orders received and order backlog

The number of orders was stated to be at the same level as in the year-earlier period in some businesses. The amount is not disclosed.

Number of employees

Number of Employees1,699 people regular employees, consolidated

Annual Dividend

Annual Dividend¥22 per share (forecast)

Interim Dividend¥5/share

Year-end dividend¥17 per share

Payout ratio

54.1% (forecast for the fiscal year ending March 2027)

Acquisition of treasury shares

¥744 million in share repurchases was recorded in the first quarter. The number of shares and the period covered by the repurchase authorization are not disclosed.

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥12,534 million (YoY -4.1%)
Operating profit	¥-55 million
Ordinary income	¥-61 million
Net income	¥-266 million (profit attributable to owners of the parent)
Gross Profit Margin	51.5%
Operating profit margin	-0.4%
Selling, general and administrative expenses	¥6,507 million
Results for the three months of the current quarter	Net Sales ¥12,534 million / Operating profit -¥55 million / Ordinary income -¥61 million / Profit attributable to owners of parent for the quarter -¥266 million
Full-year earnings forecast	Net Sales ¥63,500 million / Operating profit ¥2,800 million / Ordinary income ¥2,800 million / Profit attributable to owners of the parent ¥1,700 million / EPS ¥40.67
Segment results	Segment CreCla Business / Net Sales ¥3,882 million (up 2.8% year on year) / Operating profit ¥435 million (up 36.0%), Segment Rental Business / Net Sales ¥4,568 million (up 2.2% year on year) / Operating profit ¥365 million (up 34.6%), Segment Architectural Consulting Business / Net Sales ¥794 million (down 29.1% year on year) / Operating profit -¥244 million, Segment Housing Business / Net Sales ¥1,328 million (down 27.6% year on year) / Operating profit -¥233 million, Segment Beauty and Health Business / Net Sales ¥1,578 million (up 1.9% year on year) / Operating profit ¥74 million (down 1.6%), Segment Other / Net Sales ¥474 million (up 17.1% year on year) / Operating profit ▲¥91 million
Breakdown of Factors Affecting the Change	Factors Change in gross profit / Amount -¥104 million, Factors Personnel expenses / Amount +¥49 million, Factors Depreciation and amortization, and amortization of goodwill / Amount +¥36 million, Factors Rent / Amount +¥15 million, Factors Service supplies expenses / Amount -¥18 million, Factors Other SG&A expenses / Amount +¥8 million
Key KPIs	Indicator Number of Crecla franchisees / Value Approximately 400 companies / Year on year against the same period last year Not disclosed, Indicator Number of Nac member construction companies / Value Approximately 7,000 companies / Year on year against the same period last year Not disclosed, Indicator Million Customer initiative / Value More than 1 million households / Year on year against the same period last year Not disclosed, Indicator Sales ranking among Duskin franchisees / Value No.1 / Year on year against the same period last year Not disclosed, Indicator Value-for-money rating for water purifiers with built-in filtration / Value No. 1 / Year on year against the same period last year Not disclosed
Unit price and quantity metrics	Indicator Bottle consumption per CreCla customer / Value Increased / Year on year against the same period last year Increased, Indicator Number of putio customers / Value Increased / Year on year against the same period last year Increased, Indicator Number of orders for subsidy-eligible products / Value In line with the prior-year period / Year on year against the same period last year Unchanged
Number of employees	Number of Employees 1,699 people (regular employees, consolidated) / Change during the period Not disclosed / Hiring plan Not disclosed
Assumptions Underlying the Business Outlook	Quantitative assumptions for exchange rates, raw material prices, interest rates and other factors are not disclosed. The materials refer to uncertainties including the economic environment, competitive conditions and the success or otherwise of new services.
Medium-term management plan targets	Plan name Medium-Term Management Plan 2028 / Target fiscal year Fiscal year ending March 2028 / Net Sales ¥68,500 million / Operating profit ¥3,300 million / Cash Allocation Operating cash flow of at least ¥10 billion, ¥3 billion in maintenance investment, at least ¥6 billion in growth investment, and at least ¥3 billion in shareholder returns
Financial targets	DOE 4% (payout ratio of no more than 100%)
Annual Dividend	Annual Dividend ¥22 per share (forecast) / Interim Dividend ¥5/share / Year-end dividend ¥17 per share
Payout ratio	54.1% (forecast for the fiscal year ending March 2027)
Acquisition of treasury shares	¥744 million in share repurchases was recorded in the first quarter. The number of shares and the period covered by the repurchase authorization are not disclosed.
Orders received and order backlog	The number of orders was stated to be at the same level as in the year-earlier period in some businesses. The amount is not disclosed.
Market Size / Share	No. 1 in sales among Duskin franchise dealers (out of approximately 1,900), and No. 1 in value-for-money ratings for water purifiers with built-in filtration
New initiatives	Investment in new store openings, new services and promotional activities, Promotion of new business development and M&A, Improving customer retention and LTV through the introduction of multi-year plans, Expanding the introduction of CrePF among franchisees, Support for the use of AI and DX tools and development of versatile AI products, Customer acquisition in the Beauty and Health business through advertising investment, Investment in human capital and development of group-wide CRM

Items this document does not state (6)

Progress against full-year forecastSelf-assessment against the planNumber of stores and locationsRisk amount incorporated into the outlookCapital expendituresKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In Architectural Consulting, the proportion of sales of subsidy-eligible products, which require lengthy screening, increased, and those sales could not be recognized as revenue in the first quarter. Orders from major builders also declined. In Housing, the difficulty of procuring land in the previous fiscal year and delays in construction starts following revisions to the Building Standards Act resulted in insufficient inventories of spec homes, while the number of completed custom-built homes also declined. The net loss was attributed to higher interest expenses and the absence of gains on the sale of investment securities recorded in the year-earlier quarter.

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