The 54th Business Year Business Performance Data Analysis

The 54th Business Year Business Performance Data AnalysisFiscal Year Ending December, 2016

- The First Six-month Period -

Kashima Branch, completed on Wednesday, July 27, 2016

Announced on August 9, 2016

Kazuo NakaiGeneral Manager, Corporate Planning DepartmentYoshiki Kimura Manager, IR DepartmentKyoko Yoshimi IR DepartmentTrusco Fiorito Building 10th floor, 4-28-1 Shinbashi, Minato-ku, Tokyo 105-0004, Japan

Phone: +81-3-3433-9840 Fax: +81-3-3433-9881

E-mail： [email protected]

Trusco Nakayama Corporation

- Table of contents -The first six-month period of the fiscal year ending December 2016 (the 54th business year)

Trust Nakayama CorporationP1 Company overviewA Consolidated business performanceP2 Business performanceP3 Company-wide monthly sales and sales per day for FY ending December 2016

B Sales performanceP4 Change in monthly sales by sales routeP5 Change in net sales through the e-business route and the number of companies participating in Orange CommerceP6 Factory route: Sales by region and sales routeP7 Sales by category of goodsP8 Sales of private brand (PB) goods

C Business dataP9 Changes in sales of goods newly listed in the TRUSCO Orange Book, the number of inventory goods and the

inventory hit rateP10 Change in the number of accounts and sales from new accountsP11 System utilization

D Financial dataP12 Financial statementsP13 Selling, general and administrative expenses (SGA)P14 Capital expenditures

E Business plan for FY ending Dec. 2016 (54th business year) and thereafterP15 Mid-term management plan

Founding May 15, 1959

Representative Tetsuya Nakayama

Head offices Tokyo Head Office (Minato-ku, Tokyo)Osaka Head Office (Nishi-ku, Osaka City)

Number of offices 94(2 head offices, 76 branches, 16 distribution centers)

Capital stock 5,022,370,000 yen

Listed stock exchange First section of the Tokyo Stock Exchange (Code number: 9830)

Number of employees 2,252 (1,429 full-time employees, 823 part-time employees)

Credit rating A－(Rating and Investment Information, Inc.) As of April 15, 2016

Line of businessWholesale of machine tools; distribution equipment; maintenance, repair,and operations (MRO) merchandise including environmental safetyequipment; and planning and development of Trusco brand products

➣Business flowSuppliers Trusco Nakayama (Wholesalers) Main sales agents, about 5,400 companies Target markets (main users)

As of June 30, 2016

Sales to overseas markets

➣ Net sales and ordinary income after converting to those for 12 months ended Dec. 31 (Unit: 100 million yen)

* In 2014, the company changed its fiscal year from April-March to January-December. Figures listed above as January-December figures were converted from April-March figures. They are given for reference.

売上高

経常利益

◇Company overview◇P. 1

Net sales

Ordinary income

FY ended Dec. 2015

FY ended Dec. 2012

FY ended Dec. 2013

FY ended Dec. 2014

FY ending Dec. 2016 forecast

Manufacturers, general consumers Mail order companies, companies participating in Trusco’s electronic central purchasing systeme-business route

ManufacturersAround 2,100

Factory route

Home center route

Manufacturers, construction companies

Businesses conducting outdoor work, general consumers

Machine tool dealers, dealers of welding materials, dealers of pipe materials, conductor dealers, dealers of

electric materials, dealers of packaging materials

General hardware mass discounters, pro shops, home appliance mass discounters

Overseas manufacturersOverseas dealers, overseas subsidiaries

Jan. to Jun. of 2015

Percentage share against

net salesJan. to Jun. of 2016

Percentage share against

net salesYear-on-year

change

Budget (million yen)

[% to Net Sales]

Comparison with the budget

Change (million yen)

Comparison with the budget

Net sales 82,445 million yen － 88,365 million yen－＋7.2% 87,700 +665 +0.8%

Gross profit 17,773 million yen 21.6% 19,449 million yen 22.0% ＋9.4% 18,896[21.5%] +553 +2.9%

Selling, general and administrative expenses (SGA) 11,328 million yen 13.7% 12,192 million yen 13.8% ＋7.6% 12,147

[13.9%]+45 +0.4%

Operating income 6,444 million yen 7.8% 7,257 million yen 8.2% ＋12.6% 6,748

[7.7%] +508 +7.5%

Ordinary income 6,526 million yen 7.9% 7,395 million yen 8.4% ＋13.3% 6,781

[7.7%] +613 +9.1%

Net income 4,062 million yen 4.9% 4,830 million yen 5.5% ＋18.9% 4,362[5.0%] +468 +10.7%

Sales of PB goods 17,137 million yen 20.8% 18,790 million yen 21.3% ＋9.6% 18,219

[20.8%]+571 +3.1%

Net income per share 123.21 yen － 146.50 yen － 23.29 yen －－－

For details of SGA, please refer to Page 13.

For details of sales of PB goods, please refer to Page 8.

▮Sales via factory route and home center route steadily increased due to growth in investments in logistics systems and expansion of the product lineup, in addition to the continued increase in sales via the rapidly growing e-business route. (Sales increased 7.2% year on year.)

▮Gross margin tended to improve reflecting promotion of the expanding product lineup and increased inventories. Gross margin improved 0.4 points year on year.©2016 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations

A- Business performanceP. 2

❐Revision of business performance forecastThe Company announced revisions to the full-year forecast on August 9.

The continuous increase in inventory contributed to the improvement in customer convenience, leading to expanded sales from the inventory. As a result, more-than-expected sales were recorded in all sales routes.

修正前修正後予算増加額

売上高 1,760億円　1,770億円 +10億円

PB商品売上高 366億円 370億83百万円 +4億83百万円

営業利益 137億01百万円　147億円 +9億99百万円

経常利益 137億34百万円 148億円 +10億66百万円

当期純利益 88億05百万円 94億50百万円 +6億45百万円

1株当たり配当金 67円 72円 +5円

( -1 ) ( +1 ) ( 0 ) ( -1 ) ( +1 ) ( 0 ) ( -2 ) ( +1 ) ( +1 ) ( -1 ) ( +1 ) ( 0 ) Total ( 0 )

Number of business

days

Total

©2016 TRUSCO NAKAYAMA CORPORATION All Rights Reserved TRUSCO NAKAYAMA Investor Relations

( ) Sales in the same month previous year

18 20 22 20 19 22 20 19 20 20 20 19

▮ Change in average daily sales (all business offices)

( ) Daily sales in the previous year (1 million yen)

The amount of sales is computed as Sales per Day multiplied by the Number of Business Days, as consumables for regular use in factories are ordered constantly. Sales tend to increase from April through March of the following year, as many users close their accounts in March.

A- Company-wide monthly sales and sales per day for FY ending December 2016P. 3

Monthly sales (million yen)Monthly sales year-on-year change (%)Aggregate sales year-on-year change (%)

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Jan. Feb. Mar.

Before revision Budget after revision Change

Net sales

Operating incomeOrdinary income

Net revenue from PB goods

Dividend per share

176,000 million yen

36,600 million yen

13,701 million yen

13,734 million yen

8,805 million yen

67 yen

177,000 million yen

37,083 million yen

14,700 million yen

14,800 million yen

9,450 million yen

72 yen

+1,000 million yen

+483 million yen

+999 million yen

+1,066 million yen

+645 million yen

+5 yen

Sales per business day (million yen)Change from the previous year (%)Change of cumulative total from the previous year (%)

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Mar.Feb.Jan.

Net income

837 9051,068 1,025 975 992

+ 0.4+ 6.5

+ 3.1

+ 5.1

+ 21.6

+ 1.2+ 3.5

+ 3.4

+ 3.8 + 7.0

+ 6.0

１月２月３月４月５月６月７月８月９月１０月１１月１２月

売上高（百万円）前年比（％）累計前年比（％）

（1,036）

（833）（850）

（980）（801）（976）

1,3271,543

1,7491,490 1,378

1,596

+ 19.4+ 28.6 + 29.5

+ 24.4

+ 32.9+ 28.0

+ 24.2 + 26.2

+ 25.7

+ 27.0 + 27.2


売上高（百万円）前年比（％）累計前年比（％）

（1,351）

（1,111）（1,199）

（1,247）

（1,037）（1,197）

10,722

12,764

15,349

11,35810,598

12,427

△ 1.1

+ 9.9+ 6.4

+ 2.5

+ 7.8+ 5.2

+ 4.6 + 5.3

+ 4.7

+ 5.2 + 5.2


売上高（百万円）

前年比（％）

累計前年比（％）

（10,839）

（14,423）

（11,611）

（9,827）（11,081）

（11,808）

▮ Change in monthly sales earned via home centers

▮ Change in monthly sales earned via factory route

( ) Monthly sales in the previous year (1 million yen)



Overview of sales through home centersWhile sales to existing stores remain flat, those to pro shops show growth due to the opening of new stores.Pro shops have been taking market share from hardware shops, in which the Company is not strong, and use the Company’s advantage of quick and small-lot delivery. In the future, pro shops expect that orders from the Company will increase.

▮ Change in monthly sales earned via e-business route


18 20 22 20 19 22 20 19 20 20 20 19( -1 ) ( +1 ) ( 0) ( -1) ( +1 ) ( 0 ) ( -2 ) ( +1 ) ( +1 ) ( -1 ) ( +1 ) ( 0 )

Number of business

days

18 20 22 20 19 22 20 19 20 20 20 19( -1 ) ( +1 ) ( 0 ) ( -1 ) ( +1 ) ( 0 ) ( -2 ) ( +1 ) ( +1 ) ( -1 ) ( +1 ) ( 0 )

Number of business

days

18 20 22 20 19 22 20 19 20 20 20 19( -1 ) ( +1 ) ( 0 ) ( -1 ) ( +1 ) ( 0 ) ( -2 ) ( +1 ) ( +1 ) ( -1 ) ( +1 ) ( 0 )

Number of business days

B- Change in monthly sales by sales routeP. 4

Net sales (million yen)Year-on-year change (%)Year-on-year change in cumulative sales (%) Net sales (million yen)

Year-on-year change (%)Year-on-year change in cumulativesales (%)

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Mar.Feb.Jan. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Mar.Feb.Jan.

Net sales (million yen)Year-on-year change (%)Year-on-year change in cumulative sales (%)

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Mar.Feb.Jan.

-1.1

▮ Change in the number of companies participating in Orange Commerce (Trusco’s electronic central purchasing system)

(100 million yen)


▮ Change in net sales through the e-business route

Sales to mail order companiesSales to distributors that run mail order businesses

Sales via MRO supply (Trusco’s electronic central purchasing system)Sales to distributors that engage in three-party transactions with large companies

▮ Sales by industry through mail order companies

MRO supply (electronic central purchasing system)

B- Change in net sales through the e-business route and the number of companiesparticipating in Orange CommerceP. 5

Business performance for the nine-month

period

FY ended Mar. 2014

FY ended Dec. 2014

2013 2015 Sales forecast for

2016

Dealers of welding materials

Retailers of home electrical appliances

Machine tool dealers

Other

MRO mail order companies

Stationery mail order companies

General mail order

companies

Number of companies participating in Orange Commerce

Number of factories participating in Orange Commerce695 factories

254 companies

FY ended Mar. 2014

FY ended Dec. 2014

2013 2015

First six-month period of FY ending Dec.

2016

* Trusco’s electronic central purchase system:

Conducting business among customers, distributors and Trusco Nakayama by connecting customer’s purchasing system with Trusco’s central purchase system

A centralized purchasing system in which a customer places all orders with one supplier via the Internet.Benefits users can expect from the electronic central purchasing system:

(1) Improvement of business efficiency(2) Reduction of costs through lump-sum purchases

Customers search for the items that they want to purchase from the TRUSCO Orange Book.

OrdersReceipt of order data

Orange Commerce

Trusco Nakayama

Dealers Customers(manufacturers)Delivery

of goodsDelivery of goods

Sales through MRO supply

First six-month period of FY ending

Dec. 2016

実績前年同期比実績前年同期比予算予算比

ファクトリールート 695億91百万円 21.4% 732億20百万円 +5 .2% 21 .8% + 0 .4 73 ,212 +0 .0%

eビジネスルート 71億44百万円 26.2% 90億86百万円 +27 .2% 26 .6% + 0 .4 8 ,501 +6 .9%

ホームセンタールート 54億78百万円 17.5% 58億04百万円 +6 .0% 17 .7% + 0 .2 5 ,721 +1 .4%

その他（海外など） 2億30百万円 20.2% 2億54百万円 +10 .3% 20 .5% + 0 .3 264 △3.7%

全社合計 824億45百万円 21.6% 883億65百万円 +7.2% 22 .0% + 0 .4 87 ,700 +0 .8%

売上高（百万円）

平成27年（2015）

第2四半期

平成28年（2016）第2四半期

販売ルート売上高売上総利益率売上高売上総利益率


▮ Factory route: Sales constituent ratio by region

▮ Factory route: Sales by region

First six-month period of FY ending Dec. 2016

▮ Sales by sales route

▮ Factory route sales by industry

[Niigata North Branch: Up 11.9% year on year]Orders of Self-Defense Forces-related products increased.

[Kumamoto Branch: Up 18.7% year on year]Orders relating to restoration from the earthquake increased.

[Kagoshima Branch: Down 9.1% year on year]Output of semi-conductor-related companies decelerated.

機械工具商 371億07百万円 21.5% 387億68百万円 +4.5% 21 .9% + 0 .4 38 ,912 △0.4%

溶接材料商 98億01百万円 21.6% 103億48百万円 +5.6% 22 .1% + 0 .5 10 ,427 △0.8%

その他製造業関連（理化学・伝導機・梱包材商など）

110億43百万円 20.6% 117億20百万円 +6.1% 21 .0% + 0 .4 11 ,618 +0 .9%

建設関連 116億39百万円 21.7% 123億84百万円 +6.4% 22 .1% + 0 .4 12 ,255 +1 .1%

B- Factory route: Sales by region and sales routeP. 6

Hokkaido and Tohoku regions

Kita-Kanto region

Tokyo Metropolitan region

Shinshu and Hokuriku regions

Tokai region Kinki region Chugoku and Shikoku regions

Kyushu region

Hokkaido and Tohoku regionsKyushu

regionChugoku and Shikoku regions

Kinki region

Tokai region

Shinshu and Hokuriku regions

Tokyo metropolitan region

Kita-Kanto region

Sales route

Factory route

Total

Home center routeOther (Overseas, etc.)

e-business route

Gross profit marginNet sales

69,591 million yen7,144 million yen5,478 million yen230 million yen

82,445 million yen

Net salesActual results

Gross profit marginActual results Budget

Sales (million yen)Comparison

with the budgetYear-on-year change Year-on-year change


73,220 million yen9,086 million yen5,804 million yen254 million yen

88,365 million yen

Machine tool dealersWelding material dealersOther manufacturing related (physical and chemical material, transmission machinery, packing material dealers)

Construction related

37,107 million yen9,801 million yen

11,043 million yen

11,639 million yen

38,768 million yen10,348 million yen11,720 million yen12,384 million yen

-3.7%

-0.4%-0.8%

First six-month period of FY ended Dec. 2015: Sales via factory route (million yen)

First six-month period of FY ending Dec. 2016: Sales via factory route (million yen)

( ) Year-on-year change (%)

First six-month period of FY ended Dec. 2015

商品分類（大分類）中分類全社売上高構成比前年比粗利率商品分類（大分類）中分類全社売上高構成比前年比粗利率

1.切削工具切削工具 1,622 1.8 △1.5 10.4 6.環境安全用品保護具 6,463 7.3 +16.0 25.3穴あけ・ネジきり工具 1,731 2.0 +1.8 22.5 安全用品 3,637 4.1 +14.6 25.5

2.生産加工用品測定計測 3,658 4.1 +11.5 17.7 環境改善用品 733 0.8 +10.9 22.6メカトロニクス 1,523 1.7 +6.5 15.5 冷暖房用品 1,055 1.2 +5.0 16.8工作機工具 1,019 1.2 △2.7 22.1 防災・防犯用品 409 0.5 +12.9 20.6電動機械 1,198 1.4 +0.2 10.9 物置・エクステリア用品 766 0.9 +5.1 14.8

3.工事用品油圧工具 795 0.9 △0.5 12.6 7.物流保管用品荷役用品 2,723 3.1 △1.3 17.9ポンプ 1,373 1.6 +4.4 16.1 コンベヤ 553 0.6 △3.5 16.3溶接用品 849 1.0 +1.6 19.1 運搬用品 4,293 4.9 +7.9 23.2塗装・内装用品 940 1.1 +28.1 24.0 コンテナ・容器 1,558 1.8 +4.0 31.8土木建築 744 0.8 △2.1 12.4 スチール棚 1,890 2.1 +14.7 26.1

はしご・脚立 1,342 1.5 +13.9 22.6 8 .研究管理用品ツールワゴン 482 0.5 +11.9 29.7配管・電設資材 1,260 1.4 +6.7 23.9 保管・管理用品 612 0.7 +8.2 32.5部品・金物・建築資材 2,526 2.9 +7.0 29.2 作業台 641 0.7 +4.7 26.8

4.作業用品切断用品 635 0.7 +6.4 22.9 ステンレス用品 758 0.9 +9.3 18.7研削・研磨用品 3,063 3.5 +3.2 24.9 研究開発関連用品 1,389 1.6 +11.0 16.8

化学製品 7,816 8.8 +6.9 23.5 9 .オフィス住設用品清掃用品 2,353 2.7 +10.4 22.5工場雑貨 1,493 1.7 +7.0 15.9 文具用品 617 0.7 +8.1 19.2梱包結束用品 2,002 2.3 +7.6 30.8 オフィス雑貨 896 1.0 +16.2 28.4キャスター 1,352 1.5 +3.8 18.1 電化製品 1,447 1.6 +9.9 23.7

5.ハンドﾂｰﾙ電動工具・用品 4,173 4.7 +0.9 16.3 OA事務用機器 653 0.7 +9.2 26.9空圧工具用品 2,794 3.2 +4.1 19.8 事務用家具 1,813 2.1 +11.2 24.7手作業工具 7,598 8.6 +6.2 22.7 インテリア用品 152 0.2 △7.4 19.9

工具箱 746 0.8 +10.2 30.4 10 .その他（ｶﾀﾛｸﾞ等）全体 196 0.2 +10.1 19.5(単位：百万円、％）合計 88,365 100.0 +7.2 22.0

3,349

6,9549,170

15,436 14,654

11,504 10,458

3,553

7,185

178

3,354

7,3999,835

16,362 15,31213,065

11,020

3,883

7,934

196

1.切削工具 2.生産加工用品 3.工事用品 4.作業用品 5.ハンドツール 6.環境安全用品 7.物流保管用品 8.研究管理用品 9.オフィス

住設用品

10.その他

（カタログなど）

H27年（2015）2Q売上高（百万円）

H28年（2016）2Q売上高（百万円）

( ) Year-on-year change (%)


▮ Sales graph by large category and details of medium category

（+0.2）

（+13.6）

（+4.5）（+6.0）

（+7.3）

（+6.4）

（+5.4）

（+10.4）

（+10.1）

（+9.3）

11.1

14.8

4.4

0.2

▮ Sales of goods used for repair(million yen)

Repair service offered under contract with repair workshop Naojiro

2,000(Forecast)

B- Sales by category of goodsP. 7Sales for the first six-month period of FY ended Dec. 2015 (million yen)Sales for the first six-month period of FY ending Dec. 2016 (million yen)

1. Cutting tool 2. Production processing goods

3. Construction goods

4. Work supply 5. Hand tool 6. Environmental safety equipment

7. Distribution and storage equipment

8. Research management

equipment

9. Office and housing facility

equipment

10. Others (including catalog)

Constituent ratioCategory of goods

(large category) Medium category Trusco’s sales Constituent ratio Gross profit margin

Category of goods(large category) Medium category Trusco’s sales Constituent

ratioGross profit

marginYear-on-year

changeYear-on-year

change1. Cutting tool

2. Production processinggoods

3. Construction goods

4. Work supply

5. Hand tool

3.8

8.4

18.5

17.3

Cutting toolsDrilling and thread cutting toolsMeasurement equipmentMechatronicsTools for machine toolsElectric machineryHydraulic toolsPumpsWelding equipmentPainting and interior goodsCivil engineering and building goodsLadders and stepladdersPiping and materials of electric equipmentComponent, hardware, and building materialsCutting goodsGrinding and polishing goodsChemical productsFactory miscellaneous goods

CastersElectric power tools and accessoriesPneumatic tools and accessories

Tools for manual work

Tool boxes

Packing and binding goods

6. Environmental safety equipment

7. Distribution and storage equipment

8. Research management equipment

9. Office and housing facility equipment

10. OtherTotal

12.5

9.0

Protective equipmentSafety goodsEnvironment improvement goodsAir conditioning goodsDisaster and crime prevention goodsClosets and exterior goodsLoading goodsConveyorsTransportation goodsContainers and vesselsSteel shelvesTool wagonsStorage and management goods

Work benchesStainless goodsResearch and development-related goods

Cleaning utensilsStationeryOffice miscellaneous goodsElectric appliancesOA business machineryOffice furnitureInterior goodsOther total

2012 2013 2014 2015

*3. Construction goods: Due to a sales increase in painting-related goods via the home center route, sales of painting and interior goods grew 28.1% y ear on year.*6. Environmental safety equipment: Sales of protective equipment and safety goods increased by 14.6% and 14.6%, respectively, reflecting the expansion of merc handise handled and the increase in sales through the e-business route.*7. Distribution and storage equipment: Sales of loading goods and conveyors recorded year-on-year decreases of 1.3% and 3.5%, respectively, due to a return to normal levels of order receipts from robust sales in the previous fiscal

year.

(Million yen, %)

-1.5

-2.7

-0.5

-2.1

-1.3-3.5

-7.4

First six-month period of FY 2016

▮ Change in sales of PB goods( ) Change from previous year (Unit: million yen, %)

▮ PB sales ratio by category of goods (%)

▮ Sales of PB goods by category of goods (Unit: million yen)


* Excluding sales through other routes

Ratio of PB products via e-business route: 28.1%The private brand “TRUSCO” is distributed solely by the Company, and there are a great number of goods in inventory. Therefore, many mail order companies proactively post our PB brand on their website. The constituent ratio of PB brands compared to net sales of the whole company rose from 20.8% to 21.3% year on year.

（+8.0％）

18,790（+9.6）

全体ファクトリー eビジネスﾎｰﾑｾﾝﾀｰ

構成比 21.3% 構成比 21.4% 構成比 28 .1% 構成比 8.0%

粗利率 35.4% 粗利率 35.6% 粗利率 35 .8% 粗利率 28.7%

売上高前年比※ 売上高前年比※ 売上高前年比※ 売上高前年比※

合計 18 ,790 +9 .6% 15 ,694 +7 .0% 2 ,552 +31 .5% 466 +3 .4%

切削工具 292 +11.0% 226 +11.3% 31 +26.1% 32 △0.3%

生産加工用品 674 +8.7% 562 +6.4% 95 +26.8% 9 △0.8%

工事用品 1,512 +11.4% 1,243 +8.7% 237 +31.9% 29 △3.2%

作業用品 3,287 +6.3% 2,861 +4.0% 378 +27.7% 36 +3.5%

ハンドツール 2,017 +9.5% 1,646 +6.7% 282 +28.7% 70 +9.7%

環境安全用品 2,864 +10.6% 2,421 +8.1% 395 +30.2% 41 +2.6%

物流保管用品 4,797 +9.9% 3,880 +7.1% 660 +34.8% 238 +3.5%

研究管理用品 1,615 +8.6% 1,406 +6.2% 194 +30.4% 2 +1.5%

オフィス住設用品 1,726 +14.1% 1,444 +10.6% 276 +36.9% 3 △5.4%

その他 1 - 0 - 0 - 1 -

B- Sales of private brand (PB) goodsP. 8

Total

Cutting toolProduction processing goodsConstruction goods

Work supply

Hand toolEnvironmental safety equipmentDistribution and storage equipmentResearch management equipmentOffice and housing facility equipment

Other

Entire company Factory route e-business route Home center route

Gross profit margin

Constituent ratio

Gross profit margin

Constituent ratio

Gross profit margin

Constituent ratio

Gross profit margin

Constituent ratio

Net sales Year-on-year change* Net sales Year-on-year

change* Net sales Year-on-year change* Net sales Year-on-year

change*

Business performance for the nine-month period

FY ended Mar. 2013

FY ended Mar. 2014

FY ended Dec. 2014

FY ended Dec. 2015

First six-month period of FY

ending December 2016

PB constituent ratio

PB gross profit margin

(Forecast)

Production processing goods

Construction goods

Work supply

Hand toolEnvironmental

safety equipment

Distribution and storage equipment

Research management equipment

Office and housing facility

equipmentOther Cutting tool

-0.3%-0.8%-3.2%

-5.4%

◇ Number of goods newly listed: 145,197 items (2011-2015 total)◇ New suppliers: ASICS Corp., Asahipen Corp., Makita Corp., Dyson Japan,

Olympus Corp., Unicharm Corp.

◇ Inventory hit rate: Number of rows shipped from inventory divided by the number of rows ordered


C- Changes in sales of goods newly listed in the TRUSCO Orange Book, the number of inventory goods and the inventory hit rateP. 9

▮ Change in the number of inventory items and the inventory hit rate▮ Change in sales of goods newly listed in the TRUSCO Orange Book

6,000

14,200

22,100

31,700

36,900

2014 edition

2013 edition

2012 edition

2011 edition

2015 edition

2011 2012 2013 2014 2015

Inventory hit rate (%)

Number of inventory items (piece)

FY ended Mar. 2014

FY ended Dec. 2014

2013 2015First six-

month period of FY ending

Dec. 2016

機械工具商

12%

溶接材料商

3%

その他製造業関係

（理化学・伝導機・梱

包資材商）

11%

建設関連

（電材・管材商）

17%

ホームセンター

23%

ネット通販企業

など

34%

1. Change in the number of new accounts and sales from new accounts


■ Expansion of sales routes1. Sales from new accounts opened in the most recent five years amounted to

16,800 million yen, strongly driving the Company’s growth.2. Sales from Other manufacturers, Construction related industries, and Internet

mail order companies, which include many new industries for the Company,account for 62% of sales from new accounts.

3. In the wake of the economic recession following the Lehman Shock in the fallof 2008, distributors began to handle goods in new fields with the aim ofexpanding their sales channels. As a result, there was an increase in requestsby new clients in different business fields, such as dealers of chemicalmaterials and electrical materials, to start doing business with the Company.While the total number of companies, including new clients and dissolvedcompanies, remained flat, the number of accounts increased by more than1,000 on a 3-year average, reflecting the increase in transactions with majorcompanies that operate multiple stores on a nationwide scale.Consequently, the number of business accounts established with the Companyhas grown by approximately 8,800 in six-and-a-half years since the fiscal yearended in March 2009.

2. New account sales and sales ratio broken down by marketing routein 2015 (Unit: million yen, %)

7,129

2,222

2,323

2,110

8042,298

3. Change in the number of accounts

Lehman shock↓

1,000 million yen

3,800 million yen

7,600 million yen

12,000 million yen

16,800 million yen

C- Change in the number of accounts and sales from new accountsP. 10

Accounts opened in 2015





2011 2012 2013 2014 2015

Welding material dealersMachine tool dealers

Construction related (electrical and piping material dealers)

Home center route

Online shop operators and others Other companies dealing in manufactured

items (dealers of chemical materials, dealers of conductors, dealers of packaging materials)

Number of accounts

Number of companies having accounts with Trusco Nakayama

FY ended Mar. 2014

FY ended Dec. 2014

2015201320122011201020092008 First six-month period of FY

ending Dec. 2016

* (Reference) The number of companies being liquidated stood at about 100 per year.

Improvement of business efficiency seen in line with the adoption of an Internet ordering system

▮ Orders obtained through the Internet (including FAX-OCR)

1) Ratio of company-wide orders received via the Internet: 81.8%.Internet-based orders accounted for more than 80% of the orders received through all marketing routes.

2) Sales amounted to about 95 million yen per branch employee. Per-employee productivity has risen every year for the past five years.

(Average daily overtime has fallen below one hour.)


▮ Change of sales per branch employee

[Reference] Cumulative total of inquiries filed through the end of June, measured in terms of the number of lines used: DOTKUL =about 900/day; number of Web accesses =about 81,000/day

+3.3

計 11,165,167 81.8% +10.9 54,475 61.6% +13.8

ＥＯＳホームセンター電子発注システム

2,530,782 18.5% +5.0 5,139 5.8%

9.0% +68.4 5,034 5.7%

+1.5オレンジコマースユーザー様購買システムとの連携

585,070 4.3% △11.1 2,506 2.8%

占有率

前年比※

DOTKUL　（ドットクル）ＦＡＸ-OCR

368,289 2.7% △11.7 1,750 2.0% △8.5

受注実績受注行数（行）行数占有率占有率

前年比※受注金額（百万円）金額占有率

+13.9

トラスコＥＤＩ販売店様発注システムとのデータ連携

+49.7

トラスコオレンジブック.Com（販売店様、ユーザー様用）インターネット受発注

6,456,241 47.3% +10.3 40,044 45.3%

1,224,785

C- System utilizationP. 11

Orders obtained Number of rows for orders (rows) Share Order amount

(million yen)Share in terms of

amountChange of

percentage share from previous year *

Change of percentage share

from previous year *

Orange CommerceConnecting with the customer’s purchasing system

Trusco EDIConnecting with the distributor’s ordering system

DOTKULFAXOCR

Total

TRUSCO Orange Book.Com (distributors, customers) order through the Internet

EOSHome center electronic ordering system

-11.1

-11.7 -8.5

Number of employees (persons)2011 2012 2013 2015

Sales per branch employee (million yen)

March 2014(2014)

Dec. 2014 (2014)

* Figures listed above as sales per branch employee take into account sales management costs (including distribution costs and personnel costs at the head office).

資産負債・資本

流動負債18,403（△8.3）

固定負債　2,370（+3.5）

流動資産64,037（+1.8）

純資産

101,422（+3.7）固定資産

58,159（+1.6）

内、有形固定資産　

53,082（+1.6）

総資産　122,196(+1.7)

▮ Balance sheet

1. The Other segment includes overseas sales, etc., that are not included in reportable segments.

2. Adjustments of 172 million yen in ordinary income include ordinary income that is not attributable to each reportable segment.*Adjustments: Gains on the redemption of securities and rental

income from rental properties, etc.


As of June 30, 2016Unit: million yen, %, ( ) Change from the end of the previous fiscal year

▮ Segment information, etc.Unit: million yen, ( ) year-on-year change

▮ Statement of cash flows Unit: million yen

Net worth83.0％

売上高経常利益

73 ,220 6 ,170

(+5 .2） (+12 .1)9 ,086 1 ,107

(+27 .2) (+24 .4 )5 ,804 17(+6 .0 ) (+82 .5 )

88 ,111 7 ,296(+7 .2 ) (+13 .9 )

254 △73(+10 .3) (前年実績△6百万円）

合計 88,365 7 ,222(+7 .2 ) （+12 .9）

調整額 - 172

　財務諸表計上額　　 88,365 7 ,395(+7 .2 ) （+13 .3）

その他（海外販売課）

平成28年（2016）12月期

第2四半期

ファクトリールート

報告セグメントホームセンター

ルート

計

eビジネスルート

平成28年（2016）12月期2Q

営業活動によるキャッシュ・フロー 4 ,160投資活動によるキャッシュ・フロー △2,239財務活動によるキャッシュ・フロー △1,040現金及び現金同等物に係る換算差額 -現金及び現金同等物の増減額 880現金及び現金同等物の期首残高 14 ,296現金及び現金同等物の四半期末残高 15 ,176

P. 12 D- Financial statements

Net sales Ordinary income

First six-month period of FY ending December 2016

e-business route

Home center route

Factory route

Total

Reportable segments

Total

Other(Overseas Sales Section)

AdjustmentsAmounts on financial statements

-73(Previous year: -6 million yen)

Assets Liabilities and shareholders’ equity

Current assets

Non-current assets

Of which property, plant, and equipment

Current liabilitiesNon-current liabilities 2,370 (+3.5)

18,403 (-8.3)

Net assets

Total assets

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period


2,2391,040

平成27年（2015）12月期2Q

平成28年（2016）12月期2Q

増減額前年増減率

1 運賃荷造費 1,079 1,230 151 +14.0

2 傭車料 752 764 11 +1.5

3 広告宣伝費 254 191 △62 △ 24.6

4 販売促進費 355 282 △72 △ 20.5

5 車両費 98 92 △6 △ 6.4

6 役員報酬及び見積額 185 200 14 +8.0

7 人件費 ※ 4,640 5,273 632 +13.6

8 福利厚生費 818 905 87 +10.7

9 接待交際費 43 76 33 +77.1

10 旅費及び交通費 236 263 27 +11.6

11 通信費 142 145 3 +2.4

12 支払手数料 622 548 △73 △ 11.8

13 消耗品費 209 181 △27 △ 13.3

14 水道光熱費 125 111 △13 △ 10.8

15 租税公課 323 377 54 +16.9

16 減価償却費 1,103 1,176 72 +6.6

17 借地借家料 159 159 0 △ 0.1

18 その他 178 211 32 +18.1

11,328 12,192 863 +7.6計

▮ Breakdown of selling, general and administrative expenses

Increase in shipment due to higher sales


Unit: million yen, %

Decrease in expenses for relocating distribution centers that occurred last yearRelocation of Planet Kyushu (- 27 million yen)Relocation of the data center (-19 million yen)Relocation of Planet Osaka (- 30 million yen)

Main factors

Increase in depreciation expenses for Planet Osaka, which started operation in May 2015 (74 million yen)

Decrease of 58 million yen in spending for airing TV commercials for private brand cart “Komawari-kun”

Increase of 79 regular employees (Breakdown: 20 in career-track positions, 43 in logistics positions, and others) and 97 part-timers, and pay raises from the previous year

Decrease in expenses for furnishings arising from the relocation of distribution centers last yearFurnishings for Planet Kyushu (- 13 million yen)Furnishings for Planet Osaka (- 50 million yen)

* Personnel expenses are the total of salaries and bonuses (full-time and part-time employees) and allowances for bonuses (provision and reversal).

Increase of 79 million yen in statutory fringe benefit costs due to pay raises and increase in payroll

Decrease of 79 million yen in spending for catalogs, flyers and other printed matter

FY ended March 2013 FY ended March 2014 FY ended December 2014 FY ended December 2015

Labor’s share 41.03 39.02 39.41 35.82

Reference:

D- Selling, general and administrative expenses (SGA)P.13

ChangesFirst six-month

period of FY ended Dec. 2015

First six-month period of FY

ending Dec. 2016

Change from previous year

Freightage and packing expensesCar hiring expensesAdvertising expenses

Promotion expensesVehicle expenses

Welfare expenses

Entertainment expensesTraveling expenses and transportation expensesCommunication expenses

Personnel expenses*

Commission fee

Supplies expenses

Utilities expensesTaxes and dues

Depreciation

Leasehold and office rentsOther

Total

Remuneration paid to directors and its estimation

-62-72-6

-24.6-20.5-6.4

-73 -11.8-27 -13.3-13 -10.8

-0.1

▮ Capital expenditures

▮ Change in capital expenditures (Unit: million yen)

Facilities under construction Relocation for new facility construction

• Fuji Branch (Currently, Numazu Branch) • Oita Branch

New construction • Planet Saitama


8,500 million yen

4,513 million yen

52,082 million yen invested for the most recent 10 years

Others = including spending for the Tokyo head office, and spending for facilities at distribution centers and company resort houses

Cumulative total from FY ended March 2007 to FY ended Dec. 2015 * The capital expenditures for the most recent ten years include 8,900 million yen of the Tokyo Head Office

construction costs.

*

平成28年（2016）第2四半期　実績稼動予定（百万円）平成28年（2016）第3四半期以降　予定稼動予定（百万円）

プラネット埼玉平成30年（2018）4月 1,013 プラネット埼玉平成30年（2018）4月 2,844

郡山支店平成28年（2016）4月 288 鹿島支店平成28年（2016）7月 274

鹿島支店平成28年（2016）7月 217 大分支店平成29年（2017）1月 517

情報システム関連 - 725 富士支店（現：沼津支店）平成29年（2017）4月 305

トラスコ　リゾート＆スパ軽井沢 - 24 プラネット東関東増築 - 284

その他 241 トラスコ　リゾート＆スパ京都 - 514

情報システム関連 - 595

その他 - 659

合計 - 2,508 合計 - 5,992

D- Capital expendituresP. 14

Completion (Million yen) Completion (Million yen)First six-month period of FY ending Dec. 2016 (Results) 3Q of FY 2016 and thereafter (Plan)

Planet SaitamaKoriyama branchKashima branch

TRUSCO Resort & Spa KaruizawaInformation system

Other

Total

Planet SaitamaKashima branchOita branchFuji Branch (currently Numazu Branch)Extension of Planet East KantoTRUSCO Resort & Spa KyotoInformation systemOther

Total

April 2016April 2018

July 2016

April 2018July 2016

January 2017April 2017

Distribution centers Branches Information system Other

Capital expenditures for the most recent

10 years

2015

Capital spending planned for 2016

Since the mid-term management plan is based on the Company’s judgment when preparing the materials, the Company does not guarantee the accuracy of the information. Please note that actual business performance and results may differ from the forecast due to various factors.

The Company has been using the total of each branch’s annual budget formulated by its manager as its entire company’s budget from the 51st business year. Though the Corporate Planning Department decided the budget in the past, the Company lets each branch manager, who is familiar with the market, take ultimate responsibility for formulating its branch’s budget by developing its strategy, including the allocation of personnel. Since the total of each branch’s budget will become the entire company’s budget in the future, the Company will review the mid-term management plan every business year.


On August 9, the Company announced an upward revision to the plan, leaving the amounts in the 55th business year and thereafter unchanged at the levels before the revisions. Revisions to these will be updated at the end of the current fiscal year.

予算構成比前年

同期比予算構成比前期比予算構成比前期比予算構成比前期比

（百万円） (％）（％）（百万円） (％）（％）（百万円） (％）（％）（百万円） (％）（％）

166,565 100.0 106.5 177,000 100.0 106.3 187,000 100.0 105.6 200,000 100.0 107.0ファクトリールート 139,574 83.8 105.3 146,783 82.9 105.2 153,200 81.9 104.4 160,500 80.3 104.8

14,850 8.9 125.9 17,929 10.1 120.7 21,000 11.2 117.1 26,000 13.0 123.811,463 6.9 97.8 11,696 6.6 102.0 12,000 6.4 102.6 12,500 6.3 104.2

676 0.4 182.7 590 0.3 87.3 800 0.4 135.6 1,000 0.6 125.035,764 21.5 109.9 38,600 21.8 107.9 40,018 21.4 103.7 43,000 21.5 107.529,732 21.3 108.2 31,664 21.6 106.5 32,150 21.0 101.5 33,544 20.9 104.33,900 26.3 131.4 4,761 26.6 122.1 5,425 25.8 113.9 6,750 26.0 124.42,002 17.5 100.4 2,054 17.6 102.6 2,283 19.0 111.1 2,506 20.0 109.8

129 19.1 127.7 119 20.2 92.2 160 20.0 134.5 200 20.0 125.022,788 13.7 110.0 23,900 13.5 104.9 25,500 13.6 106.7 27,400 13.7 107.512,976 7.8 109.7 14,700 8.3 113.3 14,518 7.8 98.8 15,600 7.8 107.51,927 - - - - - 0 - - 0 - -

営業外費用 1,691 - - - - - - - - - - -13,211 7.9 112.0 14,800 8.4 112.0 14,518 7.8 98.1 15,600 7.8 107.5

23 - - - - - - - - - - -93 - - - - - - - - - - -

8,242 4.9 111.9 9,450 5.3 114.6 9,437 5.0 99.9 10,140 5.1 107.4249円96銭 - - 286円59銭 - - 286円17銭 - - 307円50銭 - -62円50銭 - - 72円 - - 72円 - - 77円 - -

33,004,372 - 100.0 33,004,372 - 100.0 33,004,372 - 100.0 33,004,372 - 100.0ﾌﾟﾗｲﾍﾞｰﾄ・ﾌﾞﾗﾝﾄﾞ商品売上高 34,322 20.6 110.4 37,083 21.0 108.0 39,501 21.1 106.5 42,630 21.3 107.9

ファクトリールート 29,097 20.8 107.4 31,059 21.2 106.7 32,391 21.1 104.3 34,060 21.2 105.2eビジネスルート 4,112 27.7 139.5 4,683 26.1 113.9 5,670 27.0 121.1 7,020 27.0 123.8

914 8.0 100.8 1,161 9.9 127.0 1,200 10.0 103.4 1,250 10.0 104.2198 29.3 139.4 180 30.5 90.9 240 30.0 133.3 300 30.0 125.0

ＰＢ商品粗利率 35.4 - - 35.8 - - 35.8 - - 35.8 - -

ＰＢ在庫ｱｲﾃﾑ数 35,673 - 106.7 37,800 - 106.0 40,400 - 106.9 43,000 - 106.4

41,500 - 107.2 44,200 - 106.5 46,800 - 105.9 49,500 - 105.8

4,513 - 75.2 8,500 - 188.3 9,500 - 111.8 9,950 - 104.7内システム投資 512 - 179.6 1,320 - 257.8 422 - 32.0 1,600 - 379.1

2,366 - 118.6 2,387 - 100.9 2,381 - 99.7 3,131 - 131.5内システム投資 623 - 106.9 659 - 105.8 747 - 113.4 822 - 110.0

商品在庫 25,017 - 115.3 25,800 - 103.1 26,900 - 104.3 29,600 - 110.0社員数 1,349 - 105.4 1,410 - 104.5 1,490 - 105.7 1,570 - 105.4パートタイマー人数 787 - 113.7 820 - 104.2 870 - 106.1 1,050 - 120.7

その他(海外）

設備投資額

減価償却費

当　期　純　利　益1株当たり当期純利益1株当たり配当金発行済株式数

ホームセンタールート

オレンジブックＰＢ掲載ｱｲﾃﾑ数

特別損失

売上総利益ファクトリールートeビジネスルートホームセンタールート

販売費及び一般管理費営業利益営業外収益

経　常　利　益特別利益

その他(海外）

eビジネスルートホームセンタールート

売　　上　　高

その他(海外）

第53期平成27年（2015）12月期

実績

第54期平成28年（2016）12月期

予算

第55期平成29年（2017）12月期

予算

第56期平成30年（2018）12月期

予算

E- Mid-term management planP. 15

Net salesFactory routee-business routeHome center routeOther (overseas)

Factory routee-business routeHome center routeOther (overseas)

Gross profit

Selling, general and administrative expensesOperating incomeNon-operating incomeNon-operating expensesOrdinary incomeExtraordinary income

Factory routee-business routeHome center routeOther (overseas)

Extraordinary lossNet incomeNet income per shareDividend per shareNumber of outstanding sharesSales of private brand goods

249.96 yen62.50 yen

Gross profit margin of private brand goodsNumber of private brand inventory goodsNumber of private brand goods listed in the Orange BookCapital expenditures

Investment in systems

Investment in systemsDepreciation

InventoryNumber of employeesNumber of part-timers

Results of the 53rd business year (FY ended Dec. 2015)

Year-on-year change

(%)Budget

(million yen)Constituent

ratio(%)

Budget for the 54th business year(FY ending Dec. 2016)

Change from the previous

year(%)


Constituent ratio(%)

Budget for the 55th business year (FY ending Dec. 2017)


year(%)



Budget for the 56th business year (FY ending Dec. 2018)


year(%)



286.59 yen72 yen

286.17 yen72 yen

307.50 yen77 yen

Documents

The 54th Business Year Business Performance Data Analysis