NAKABAYASHI CO.,LTD.

Business Details

Operates BPO services covering printing, data printing, and bookbinding, along with Library Solutions, Data Print Services, and manufacturing/sales of Corporate Diaries & Printed Materials, as well as staffing services. Major subsidiaries include Woman Staff Co., Ltd. (staffing services and outsourced library operations), Nippon Tsushinshi Co., Ltd. (outsourcing, CBT examinations, printing), Matsumoto Collotype Kogeisha Co., Ltd. (Graduation Albums), Hakkosha Co., Ltd. (seal printing), and International Chart Co., Ltd. (label paper). The business is primarily order-based production, with book binding, Corporate Diaries & Printed Materials, and Data Print Services being the main order categories.

Recent Overview

Net sales decreased 4.9% year on year, but operating profit increased 30.0% due to a focus on profitability and promotion of in-house production

In FY2026 (ending March 2026), net sales decreased to ¥29,618 million (down 4.9% year on year), but operating profit increased significantly to ¥1,135 million (up 30.0% year on year), driven by profitability-focused order selection, in-house development of systems, price revisions, and cost reductions from consolidating manufacturing into Nakabayashi Factory. The decline in order amounts due to intensifying bid competition in the BPO market was offset by the acquisition of large-scale and proposal-type projects and improved profitability.

Key Products

Growth Drivers

• Improved profitability and enhanced comprehensive proposal capability through in-house development of systems in BPO services
• Improved profit margin through profitability-focused order selection (strategic shift from sales focus to profit focus)
• Increase in outsourced library operation contracts and acquisition of highly specialized projects such as bookshelf relocation support
• Expansion of high-unit-price orders for medical and transportation company applications in the Seals & Labels field and margin improvement through in-house production
• Expansion of orders for eco-friendly paper packaging materials (such as paper-based multi-tiered food containers) and capturing demand for plastic reduction
• Rationalization and cost ratio improvement through consolidation of Graduation Albums manufacturing divisions (into Nakabayashi Factory)
• Acquisition of new high-margin orders with high creative value linked to DX

Risks

• Structural decline in sales of diaries, envelopes, and general printed materials due to progress of paperless trends
• Risk of declining order amounts due to intensifying bid competition in the BPO market (sales down 4.9% in FY2026)
• Rising manufacturing costs due to soaring raw material and energy prices
• Declining trend in order volume for bookbinding business (the decline has been mitigated by price revisions, but structural challenges persist)
• Risk of supply constraints in the labor-intensive BPO business due to labor shortages

Business Details

In addition to manufacturing and sales of notebooks, albums, files, storage and organizing products, gadget accessories, printer paper, child seats, shredders, bookbinding machines, electronic medical record carts, and IV stands, the company also sells office furniture and wooden furniture, and engages in waste paper recycling. Manufacturing takes place at Shimane Nakabayashi Co., Ltd. and NCL VIETNAM CO., LTD., with sales networks through consolidated subsidiaries such as Fuel Sales Co., Ltd., Kaguguro Co., Ltd., and Sun Lemon Co., Ltd. The company is promoting a range of profitability improvement measures, including price revisions and renewals, utilization of EC channels, and expansion of stuffed toy sales to theme parks in Europe and the United States.

Recent Overview

Operating profit increased significantly by 53.7% year on year due to price revisions, OEM expansion, and acquisition of large-scale office furniture projects

In FY2026 (ending March 2026), the Consumer Communications segment achieved significant profit growth, with net sales of ¥30,591 million (up 1.4% year on year) and operating profit of ¥1,808 million (up 53.7% year on year). Contributing factors included improved profit margins from price revisions and renewals of photo-related products, stationery, and gadget accessories, delivery of a large office furniture project to a theme park combined with transportation cost reductions, expansion of large-scale OEM orders such as for child seats, more efficient EC site operations, and strong performance of stuffed toys for theme parks in Europe and the United States.

Key Products

Growth Drivers

• Improved profit margins through expansion of large-scale OEM orders (such as child seats) and the effects of product price revisions
• Significant profit increase from delivery of office furniture to a large theme park and cost reductions from revising the composition of transportation providers
• Expansion of sales channels for stuffed toys to theme parks in Europe, the United States, and China, along with strengthened sales operations in China and South Korea
• Improved customer acquisition, repeat rates, and average purchase value through more efficient EC site operations and optimized advertising expenses
• Expansion of EC deployment for proprietary products and strengthened sales through EC channels leveraging price competitiveness

Risks

• Structural decline in demand due to progress of paperless trends affecting shredders and paper products
• Rising costs of imported goods due to soaring raw material and energy prices and yen depreciation
• Impact on overseas sales and OEM procurement from concerns over the Chinese economic outlook and changes in U.S. trade policy
• Risk of declining brand recognition due to delayed response to changes in consumer lifestyles
• Margin pressure from intensifying price competition in the EC market

Business Details

Consists of two businesses: Woody Biomass Power Generation and Solar Power Generation. Woody Biomass Power Generation operates while adjusting output according to the inventory status of wood chip fuel, while Solar Power Generation has been performing steadily. This is a small segment, accounting for approximately 2.1% of the Group's total net sales (FY2026, ending March 2026), with stabilizing wood chip procurement being key to improving profitability.

Recent Overview

Recorded an impairment loss of ¥1,229 million on fixed assets related to Woody Biomass Power Generation; operating profit turned positive

In FY2026 (ending March 2026), the company recorded an impairment loss of ¥1,229 million as an extraordinary loss on fixed assets related to Woody Biomass Power Generation. On the other hand, segment operating profit turned positive at ¥8 million, up from an operating loss of ¥17 million in the prior year. Net sales decreased 6.7% year on year to ¥1,284 million, but operations continued while adjusting output, and Solar Power Generation performed steadily. Due to the impairment recognition, segment assets decreased by ¥1,298 million from the end of the prior year to ¥1,196 million.

Key Products

Growth Drivers

• Securing continuous power generation revenue through stable operation of Solar Power Generation
• Improved operating rate through stabilization of wood chip fuel procurement for Woody Biomass Power Generation
• Strengthened positioning of the renewable energy business under the circular economy promotion policy in the medium-term management plan "Go on 5ing"

Risks

• Risk of sales fluctuation due to output adjustment dependent on wood chip inventory and procurement conditions
• Risk of additional impairment of fixed assets related to Woody Biomass Power Generation facilities (an impairment loss of ¥1,229 million was already recorded in FY2026, ending March 2026)
• Risk of profit pressure due to fluctuations in electricity and fuel prices
• Risk of aging facilities and increasing maintenance costs
• Risk of changes to the Feed-in Tariff (FIT) system for renewable energy

Business Details

Consists of the Vegetable Plant Business and Garlic Farm Business, among others, directly operated by Nakabayashi Co., Ltd. This is positioned as the practical implementation of the agricultural field within the "life-related industry" strategy, and accounts for an extremely small share of the Group's total net sales. In FY2026 (ending March 2026), the segment recorded net sales of ¥104 million and operating profit of ¥12 million, turning profitable from an operating loss of ¥16 million in the prior year, making it a segment still in the development stage.

Recent Overview

Turned operating profit-positive for the full year in FY2026 (ending March 2026); net sales also grew modestly by 1.5% year on year

For the full year FY2026 (ending March 2026), net sales were ¥104 million (up 1.5% year on year) and operating profit was ¥12 million (compared to an operating loss of ¥16 million in the prior year), achieving a turnaround to operating profit on a full-year basis. Segment assets were ¥48 million, a slight increase from ¥46 million in the prior year. Although the scale remains extremely small, an improvement in profitability was confirmed.

Key Products

Growth Drivers

• Expansion of the value chain through promotion of sixth-sector industrialization in agriculture
• Improved production efficiency through utilization of ICT and smart agriculture technologies
• Continued focus investment in the agricultural field under the "life-related industry" strategy
• Improved business continuity through the turnaround to operating profit for full-year FY2026, ending March 2026 (from a loss of ¥16 million in the prior year to a profit of ¥12 million)

Risks

• Extremely small sales scale (¥104 million for the full year), resulting in limited contribution to Group performance
• Fluctuations in harvest volume and quality due to weather and natural disaster risks specific to agricultural operations
• Uncertainty regarding the fixed cost burden and timeline for monetization associated with smart agriculture investments
• Risk that sixth-sector industrialization and sales channel development in agriculture may not proceed as planned
• Although a turnaround to profitability was achieved, the profit amount remains minimal at ¥12 million, and sustained profit contribution has not yet been realized