[Sapporo Head Of�ce]1-2-39 Shinkotoni 7-jo, Kita-ku, Sapporo, Hokkaido 001-0907

[Tokyo Head Quarter]3-6-20, Kamiya, Kita-ku, Tokyo 115-0043

[Osaka Head Quarter]1-1, Kamisu-cho, Toyonaka, Osaka 561-0823

Published April, 2017

Nitori Holdings Co., Ltd.

http://www.nitorihd.co.jp/en/

NITORI HOLDINGSCORPORATE PROFILE

Nitori Holdings Co., Ltd. [Corporate Pro�le]

To provide the foundation of prosperous home living to the global community.

500 stores $5.5 billion in salesTransformation of Japanese lifestyles.Full-scale launch of global retail chain development.

[Import Agent Companies]NITORI CHINA CO., LTD.Nitori Taicang Trading & Logistics Co., Ltd.HUIZHOU NITORI CO., LTD.NITORI TRADING VIETNAM COMPANY LIMITEDNITORI (MALAYSIA) SDN. BHD.Nitori Trading (Thailand) Co., Ltd.NITORI INDIA PRIVATE LIMITED

[Store Management Companies]

Nitori Co., Ltd.∙ HOME FURNISHING STORE ∙ HOME FASHION STORE ∙ NITORI MALL ∙ DECOHOME ∙ Online Shopping Business ∙ Renovation Business ∙ Corporate Sales Business etc.

[Advertising Agency]Nitori Public Co., Ltd.

[Logistics Company]Home Logistics Co., Ltd.

[Facility Management][Insurance Agent Business]

Nitori Facility Co., Ltd.

The NITORI Group

To provide the foundation of prosperous home living to the global community.Based on the dream, the NITORI Group has outlined a long-term vision and is devoting all of its energy to achieving this Dream

[Overseas Manufacturing Companies]PT. NITORI FURNITURE INDONESIANITORI FURNITURE VIETNAM EPENitori Furniture Ba Ria-Vung Tau Co., Ltd.

[Curtain Manufacturing Factory]HOME DECO CO., LTD.

[Overseas Sales Companies]Nitori Taiwan Co., Ltd.NITORI USA, INC.NITORI (CHINA) HOLDINGS CO., LTD.NITORI (SHANGHAI) HOME FURNISHING CO., LTD.

NitoriHoldings Co., Ltd.

[Holding Company]

Trading, Planning & Development,and Logistics Functions

Sales Activities

ManufacturingFunctions

Advertising andPublicity Functions

FacilityManagement

Functions

[Mission Statement]

[Vision Statement]

1,000 stores $10 billion in salesRevolutionize home living by expanding on areas with high market share.

3,000 stores $30 billion in salesTo become the company known for promoting a more prosperous living to the global community.

“Enriching the homes of Japanese people in the same way as America does”The United States I saw with my own eyes in 1972 left me amazed and deeply impressed. Prices were a third of what they were in Japan, quality was considered from the users’ perspective, product lines were coordinated by color and style, and to make all of this a reality were thousands of chain stores supporting “everyday living” for the general public. “Someday, I want to build stores like that”, “I want a company which can contribute to enriching people’s daily life”. The NITORI Group is driving its business based on those original ideas of passion, empathy and determination.

And now, rooted in the dream of “providing the foundation of prosperous home living to the global community”, we are extending that challenge towards the world. Regardless of industry practice or successful past experiences, the meaning of our company’s existence is to repeatedly refuse to be satisfied with the status quo and to continue to provide a sense of richness to our customers. In order to keep “Offering the Unexpected”, not only for our customers, but also for all of our stakeholders, we will continually challenge ourselves to improve and innovate for many more years to come.

Nitori Holdings Co., Ltd.Chairman and CEO

Akio Nitori

Nitori Holdings Co., Ltd.President and COO

Toshiyuki Shirai

2017

2022

2032

ホーム・デコHOME DECO

The NITORI Group comprises several companies, including: Nitori Co., Ltd., which deals in the planning and sale of home furnishings and home décor; NITORI FURNITURE Co., Ltd., with manufacturing subsidiaries in Indonesia and Vietnam; our logistics arm Home Logistics Co., Ltd.; Nitori Public Co., Ltd. for advertising and publicity, and insurance provider Nitori Facility Co., Ltd.By clarifying the functional roles and responsibilities within the group, we are able to deliver more agile and flexible management and enhance our continuing corporate value in this rapidly changing business environment.

[Welcome Message]

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The NITORI Group Businesses

We are manufacturing furniture in our fully-owned factories in Indonesia and Vietnam using materials sourced from places such as Europe, New Zealand, Chile and the Association of South-East Asian Nations (ASEAN). Work at the factories builds on the know-how acquired from years of OEM furniture production in China and Thailand. In order to provide even better products at even better prices we are proactively developing overseas strategies for the sourcing of materials and skills training.

NITORI has launched an interior renovation business for homes, stores and other facilities. This business is focused on providing a complete overhaul of any space. This total renovation service, with a focus on our proprietary products such as integrated kitchen systems and restroom sink units, is a holistic service from the initial proposal right through to construction work for system-baths, toilets, and other indoor renovation. The service is not simply about replacing existing units, but rather about offering added value through a total coordination service using NITORI’s furniture and home ware to fully complement the renovation. NITORI’s business model of doing everything in-house gives rise to our new way of doing business.

Our Manufacturing

Home Logistics creates an ef�cient distribution network which aims for the fast delivery of products to the vast network of retail shops throughout the country, reduction of delivery costs, and warehousing of products developed overseas. By helping to reduce these costs between the point of manufacture and end-user, Home Logistics contributes to NITORI’s affordable prices. Our aim is to give value back to the customer by fully optimizing the distribution process on a global perspective.

Our Logistics

NITORI PUBLIC is an integrated advertising agency which provides a variety of services, including strategic communication planning, advertising and sales promotion. We currently conduct marketing work for several clients, including a real estate company and a travel agency. We have recently also been putting efforts into developing novelty goods. Through learning more from its dealings with a wide range of different enterprises, NITORI PUBLIC aims to play a role in enhancing the value of the entire NITORI Group.

NITORI PUBLIC

Examples of novelty goods

From creating spaces for stores to insurance

NITORI FACILITY handles maintenance duties in order to keep the stores and of�ces of the NITORI Group in an optimal condition, and pursues the goal of creating an ideal space where our customers can feel comfortable, while reducing the maintenance cost at the same time. Furthermore, as an insurance agency dealing with both life insurance and liability insurance, we support our customers and employees to design their future in a way that is both satisfactory and reliable.

NITORI FACILITY

In-store insurance shop: “NITORI no hoken + Life salon”(at NITORI Minami-suna store)

Interior Renovation Business Business to Other Businesses

Showroom

We keep expanding our B2B business with these �ve main business areas as pillars.● Of�ce Business ● Commercial / Educational Business

● Nursing / Medical Facility Business ● Hotels and Living Conditions Business

● Model Home Business

Recently more and more corporate clients have been looking to lower the cost of installations in their of�ces and facilities. We are developing products that meet such needs for corporate clients, utilizing the SPA know-how which NITORI has acquired through its home furniture sales business. The corporate sales business market has been expanding rapidly over the past few years, and we are aiming at further growth in this market.

Example of NITORI products in use: Of�ce

Since the opening of the NITORI Printemps Ginza store (now Marronnier Gate Ginza) in 2015, we have opened outlets in new locations such as department stores in Shinjuku and Ikebukuro, opening new stores every year both at home and abroad. There is a heavy emphasis on in-store coordination, and with the most fashionable products being carefully selected from our regular NITORI product range we are developing a sales �oor with a fresh, new lifestyle approach. We will continue to revolutionize and make improvements so that those not already familiar with our brand can experience and feel the joy of NITORI’s total home coordination.

Aggressive store expansion in urban areas to meet all our customers’ needs

Positioning ourselves as a true “LIFE STYLE SUGGESTION COMPANY,” utilizing a wide range of business fields

NITORI has been opening its stores in locations with a population of 200,000~400,000 in the area. However, in order to encourage customers to visit our stores more frequently, there was a need to create a new and smaller store format that would work for areas with smaller populations.“DECO∙HOME” is our home-fashion model which carries frequently purchased everyday goods. This represents a brand new concept in product assortment and store design, as well as in the operation of the stores.

Development of a brand new store format, and advancement into new markets, in line with our future store-opening strategy

Any good-quality product that enhances people’s lives can be bought conveniently with “one-stop shopping”: this is NITORI’s idea of a shopping center that is designed from a customer/user-centric perspective.The “Power Center,” a type of shopping center that anchors fast-growing stores from each retail model is very common in the U.S., but in Japan, it is rare, especially GMC or realtor-operated shopping centers. Making a contribution to enhancing people’s lives in the areas where they live by promoting “NITORI MALL” is NITORI’s new “DREAM”.

Home goods, fashion and food services: a shopping center designed from customers’ point of view

Furniture manufacturing which supports the ideas of “Product Power” and “Offering the Unexpected”

Japan’s largest distribution center and advanced distribution system

Penetrating the B2B market, by making effective use of our product development capability

Handling everything from goods to construction work

As an advertising company, NITORI PUBLIC has developed a wide range of businesses that extend beyond the boundary of the NITORI Group

Our Stores

The NITORI Group has developed a range of businesses so customers can style their homes the way they like and enjoy a prosperous life. In order to deliver a true luxurious lifestyle for all people in a variety of ways, we endeavor to expand our range for the future too.

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The NITORI Way

Our way to keep “Offering the Unexpected”

By establishing our own distinctive “Manufacturing, Logistics and Retail Sales”business model, we are able to offer products that improve the quality of life of our customers.Meeting our customers’ expectations is our pleasure. That is why we keep offering products with highly consistent quality at prices that are easily within reach for everybody.

In order to offer the “Unexpected” in our products, we place emphasis on the following 3 key elements:

Components of“Offering the Unexpected”

We do everything in-house, from product planning,manufacturing and logistics through to retail sales:All of our products provide “Unexpected Value”.

Market ResearchProduct Planning Product

DevelopmentRaw MaterialProcurement Manufacturing

Call Center Quality CheckImport andLogisticsSales

To create a better everyday life for our customers, we develop products by undertak-ing research from the customer’s perspective.

Our manufacturing is always basedon the customer’s perspective

Products coordinated by color, pattern, and style are developed from scratch. NITORI is able to offer fresh, new styles with these natural designs.

Coordination Proposal

We do not leave raw material procurement to others. We collect information about potential sourcing areas and then visit the areas before we begin procurement.

Raw material procurement from all over the world

We direct and manage manufacturing all the way through produc-tion. NITORI’s system creates products with consistent quality.

All parts are managed individually in-house, from the parts manufacturing stage onwards

By streamlining operations NITORI creates an enjoyable shopping experience for all its customers.

By swiftly sharing customer feedback to relevant departments it enables us to provide an even better service, improve our products and increase customer satisfaction.

Enjoy shopping without having to worry too much about the priceImproving customer satisfaction

We have built our own distribution network, from product importation to delivery to customers. Using the latest systems, NITORI is streamlining its operations and lowering costs.

Even our logistics is self-run

For our customers to be able to use our products with peace of mind, we evaluate safety and quality from every angle. Products will hit the store shelves only if they conform to our strict standards.

Quality responsibility for all items

1 Affordability

2 Quality and Functionality

3 Coordination 1) a full range of products to support each usage scenario.2) the above are linked by style and color.

use-appropriate quality and functionality.

prices that make products easily obtainable.

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Manufacturing system behind “Offering the Unexpected”

OurManufacturing

Offering “Total Coordination” to help customers enjoy a more fulfilling lifestyle

NITORI Group’s Global Expansion

Stores that match our customers’ lifestylesOur Stores

NITORI has launched various different types of stores to make sure that our customers can freely coordinate their living space and enjoy prosperous home living.

Domestic Overseas

Not only do NITORI’s products offer a variety of colors, patterns and materials for customers to choose from according to their particular lifestyle, they are also designed to easily coordinate with other products. To make it easier and more convenient for our customers to select the products they want, NITORI explores new locations and opens new stores every year. Also, in order to deliver our products into the hands of customers overseas, we are aggressively moving forward with opening new stores outside Japan.

Change in Ratio of Stores between Domestic and Overseas (Planned)

2016(Actual)

2022(Planned)

2032(Planned)

0 20 40 60 80 100（%）

91% 9%

74% 26%

33% 67%

By 2032:

3,000Stores

● Factory of NITORI FURNITURE in Indonesia

In order to offer even better products, we will continue to expand our own NITORI’s manufacturing system, transcending boundaries and regions.

This factory, with an area of over 21,000 tsubo (over 752,000 square feet), is located in the capital of North Sumatra, Indonesia. Over 1,500 local employees work in this large scale factory, of whom 40% are women and 60% are men. This percentage shows that women play an active role in the factory. In order to improve productivity, we apply two Japanese-style methods thoroughly: “Mieruka” (identifying problems and bringing them to the foreground) and “5S” (Sort, Straighten, Shine, Standardize, and Sustain). Our key source of competitive advantage is the manufacturing process that eliminates “Muda, Mura, Muri” (Muda: Waste, Mura: Unevenness or irregularity in operations, Muri: Overburdening of people and equipment).

● Factory of NITORI FURNITURE in VietnamThis factory, with an area of over 48,000 tsubo (over 1.7 million square feet), is located in the Quang Minh Industrial Zone in Me Linh District near Hanoi, the capital. The average age of the employees is in the early 20’s, and 90% are women aged around 20.

TOP > Our Business > Report on Global Business Front Line: Dream toward the world http://www.nitorihd.co.jp/division/special/

Please visit the website for more details on NITORI’s global expansion.

OverseasSubcontracting

Factories

China

Taiwan U.S.A.

● Taiwan

● China ● Japan●

South Korea

Hong Kong ●

● Indonesia

● Malaysia

● India

● Singapore

● Pakistan

Cambodia ●● Turkey

● Egypt

● Spain

● France

● Vietnam

● Thailand

● Bangladesh

● Philippines

In order to bring “prosperous home living” to our customers, we are continually working to improve manufacturing efficiency, enhance quality, and deliver products that will satisfy their needs.

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NITORI Group’s Corporate Social Responsibility

Shaping a brighter future, together with societyNITORI is able to work towards its “Dream” and “Vision”, not just because of the Group’s employees but also down to the support it gets from its customers and clients, and from all the people in the various communities around the world. Building on this important partnership we have with many different people, NITORI continues to work towards achieving “prosperous home living”.

The NITORI organization

● Organizational rules

A structure which brings out the most in the individual

In partnership with our clients

Interaction with Society

● Natural disaster relief aid ● Hokkaido aid fund ● Hokkaido tree planting project ● University lectures

● Sports sponsorship ● Cultural sponsorship ● NITORI International Scholarship Foundation ● NITORI Culture Foundation

In NITORI, where approximately 90% of our products are developed and imported by us (private brand), we set our own original quality standards and work on improving quality on a daily basis. We carry out a rigorous in-house quality inspection before each new product launch and, if a problem is discovered, we send it back to the manufacturer with a request for improvement. The process is repeated until the high standard for quality is met. Additionally, when a defect is detected in a product, we do not simply hand off the issue to the factory. We are involved at every step of the way, including in-house investigation of the cause, development of a remedial action plan, and providing training to support implementation of the corrective measure at the factory. NITORI develops the most affordable products while always maintaining the highest level of quality, and we bear responsibility for our products from beginning to end. We believe these two things are necessary to truly help customers achieve a prosperous lifestyle.

The NITORI Group has received a great deal of support from Asian countries in relation to several business activities, such as product supply. Hoping to “return the favor to Asian countries”, NITORI International Scholarship Foundation was established in March 2005 with a monetary donation from its Representa-tive Director. Foundation activities continue to expand each year with �nancial assistance awarded to students coming to Japan from all over the world, not just those from Asia. From this time forth we are going to expand further our support not just for those students coming to Japan but also for Japanese students studying at universities overseas.

Public Interest Incorporated Foundation “NITORI International Scholarship Foundation”

Supporting culture – NITORI Otaru Art Base

Benefiting sportThe NITORI Women’s Running Team

There are only 3 levels within the NITORI company structure; senior management (top), managers, and staff. Because of this, it is relatively easy for ideas and improvements to �ow up to the top from the work �oor, and conversely it is easy for senior management to share instructions and give direction to everyone in the company. NITORI ensures that every member shares the same company aim and that each employee realizes their full potential within their own area of work within the company. And as an organization, NITORI brings out abilities in the individual which they never knew they had. We believe that the constant turning of these “structural” wheels helps us create our “organizational rules”.

Stained Glass MuseumMuseum of Modern Art

As a part of our initiatives in giving back to the society and contributing to a better growth of Hokkaido’s tourism, we turned 4 historical buildings right in the heart of Otaru city into an art gallery and opened NITORI Otaru Art Base. It records more than 100,000 visitors yearly and has been very well received by the public. Through this place, we aim to spread the beauty of art and culture to the whole world.

The NITORI Women’s Running Team

In April 2015, we created the NITORI Women’s Track and Field Team with the aim of promoting a healthy lifestyle through marathon running, and contributing to a better society. From February 2016, we changed the name to the NITORI Women’s Running Team and now we are focusing strongly on doing well at future international marathon events.

Partnership with Our Clients

● Fair & just dealings● Courses on Skills / quality, guidance, open house● Partnership with Logistics Society

In partnership with our clients for fair and just dealings

We believe that eliminating injustice, unfairness, or opaqueness and building trust with clients will lead to a sustainable business, as we strive to establish a more “genuine partnership”.

Protecting the environment

● Protecting the environment

Developing products with less impact on the environment

The NITORI Group is implementing environmental measures at every stage from manufacturing through to logistics and retail sales. Through developing products made from more environmentally friendly materials, the simpli�cation of product packaging, efforts to develop products using waste wood and plastic, and smaller packaging sizes, we have been able to increase ef�ciencies in transportation and contribute to large reductions in CO2 emissions.

Together with our customers

● Product safety & quality control ● Awards for product safety

2016Award for Best Contributor

to Product Safety

A system of education to cultivate true specialists to benefit society

Together with our employees

● Recruitment & fair treatment ● Promoting diversity ● Personnel training ● Health & safety in the workplace

The amount invested for the training of one NITORI employee is approximately 2,600 dollars per year. The reason for focusing as much as this on staff training is because we at NITORI believe that in order to maximize growth of the business, nurturing the growth potential of each and every employee is more important than anything else. Each year approximately 1,000 people take part in our training seminars in the U.S. Beginning with theoretical training, trainees visit various locations and get to know products �rst hand. Each person should experience for themselves the NITORI mission of a prosperous life and by immersing themselves in the American way of life and visiting the large chain stores, employees will be able to reconnect with the NITORI dream and vision. From training courses for new recruits to top level management courses, curriculums are structured around the various stages of employee development to energize improvements in every department.

Since the introduction of our Quality control management division in 2005 we have been continually making efforts to improve on quality. Through collaboration with our production suppliers we have been working on ensuring safety, establishing rigorous technical evaluation and measures against accidents in the workplace, and education in management around the production site. Due to these efforts we were awarded the Minister of Economy, Trade and Industry Award at the 10th METI Minister’s Awards in the Large Retailer Category. So that we can offer not only affordable products but also products that are “Offering the Unexpected”, NITORI continues to make efforts to deliver safe and reliable products embracing new skills and technologies.

Received Minster’s Award from the Ministry of Economy, Trade and Industry for Best Contributor to Product Safety

Aiming towards a vibrant working environment

Today, the world is changing and there are many ways in which we can work. At NITORI, we are making efforts to create a system in which employees from various backgrounds can realize their own capabilities. Regardless of gender or nationality, we aim to be a company which brings out the best in everyone. In order to achieve 3,000 stores by 2032 we are proactively looking to hire new recruits on a global scale. Our aim is to create a workplace where it’s easy to work and everyone can share the same dream and vision.

NJ meeting (NITORI women’s meeting)

Product developmentQuality improvement

Seminars in the U.S.

TOP > CSR http://www.nitorihd.co.jp/csr/

Please visit the website for more information.

Company structure(3 levels)

Top

Staff

Manager(Specialist)

2014

Awards received

Large Manufacturer and Importer CategoryDirector-General for Commerce, Distribution and Industrial Safety Policy’s Award

2013Large Retailer CategoryDirector-General for Commerce, Distribution and Industrial Safety Policy’s Award

2011Large Retailer CategoryDirector-General for Commerce and Distribution Award

2008 Large Retailer CategorySilver Award

Complete quality control throughout the product’s life-cycle

9 NITORI HOLDINGS CORPORATE PROFILE 10NITORI HOLDINGS CORPORATE PROFILE

[Sapporo Head Of�ce]1-2-39 Shinkotoni 7-jo, Kita-ku, Sapporo, Hokkaido 001-0907

[Tokyo Head Quarter]3-6-20, Kamiya, Kita-ku, Tokyo 115-0043

[Osaka Head Quarter]1-1, Kamisu-cho, Toyonaka, Osaka 561-0823

Published April, 2017

Nitori Holdings Co., Ltd.

http://www.nitorihd.co.jp/en/

NITORI HOLDINGSCORPORATE PROFILE

Nitori Holdings Co., Ltd. [Corporate Pro�le]