Izumi : Support Documentation about the Consolidated Financial Results for the Year Ended February 28, 2022 (FY2021)

April 12, 2022

IZUMI CO., LTD.

(Stock code: 8273)

Support Documentation about the Consolidated Financial Results for the Year Ended February 28, 2022 (FY2021)

1. Summary of Financial Results

1) Consolidated Financial Results

(Unit: millions of yen)

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022	Year ending Feb. 28, 2023 (Forecast)
Operating revenue (YoY)	679,778 91.3%	676,800 99.6%	454,300 -
Operating profit (YoY)	35,781 112.2%	34,717 97.0%	32,600 -
Ordinary profit (YoY)	36,078 112.8%	34,696 96.2%	32,600 -
Profit attributable to owners of parent (YoY)	23,053 115.5%	23,204 100.7%	20,900 -
Earnings per share	¥321.72	¥324.45	¥292.40
Profit/equity	10.3%	9.6%
Ordinary profit/total assets	7.4%	7.2%
Operating profit/net sales	5.5%	5.4%
Total assets Net assets Net assets per share Equity ratio	489,692 245,411 ¥3,244.56 47.5%	468,798 262,433 ¥3,479.26 53.0%
Total number of issued shares at the end of period (excl. treasury shares) Average number of shares during the period (excl. treasury shares)	71,657,094 71,657,606	71,477,638 71,517,631
Number of consolidated subsidiaries Number of equity-method affiliates	15 5	17 4

91.3%

(*Reference)

697,100

99.6%

112.2%

97.0%

112.8%

96.2%

115.5%

100.7%

- - - -

103.0% 32,600 93.9% 32,600 94.0% 20,900 90.1%

* As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) from the beginning of the year ending February 28, 2023, the financial results forecast after this application is presented. As a reference, if reclassified to figures prior to the application of the "Accounting Standard for Revenue Recognition," operating revenue would be 697,100 million yen. With regard to year-on-year change, operating revenue would be 103.0%, operating profit would be 93.9%, ordinary profit would be 94.0%, and profit attributable to owners of parent would be 90.1% (presented as reference outside of the table).

2) Non-consolidated Financial Results

(Unit: millions of yen)

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022	Year ending Feb. 28, 2023 (Forecast)
Operating revenue (YoY)	634,583 90.6%	632,836 99.7%	355,500 -
Operating profit (YoY)	29,128 111.9%	28,065 96.3%	25,600 -
Ordinary profit (YoY)	29,420 112.1%	28,273 96.1%	25,600 -
Profit (YoY)	17,461 102.4%	19,140 109.6%	16,600 -
Dividends per share	¥83.00	¥86.00	¥86.00
Total assets Net assets Equity ratio	423,212 189,151 44.7%	407,231 201,520 49.5%

* As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) from the beginning of the year ending February 28, 2023, the financial results forecast after this application is presented. As a reference, if reclassified to figures prior to the application of the "Accounting Standard for Revenue Recognition," operating revenue would be 651,700 million yen. With regard to year-on-year change, operating revenue would be 103.0%, operating profit would be 91.2%, ordinary profit would be 90.5%, and profit would be 86.7% (presented as reference outside of the table).

(*Reference)

651,700

90.6%

99.7%

111.9%

96.3%

112.1%

96.1%

102.4%

109.6%

- - - -

103.0% 25,600 91.2% 25,600 90.5% 16,600 86.7%

1

2. Consolidated Statements of Income

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022
Amount	% of Sales	Amount	% of Sales	YoY
Operating revenue	679,778	-	676,800	-	99.6%
Net sales	645,672	100.0%	643,280	100.0%	99.6%
Gross profit	147,467	22.8%	145,943	22.7%	99.0%
Operating revenue	34,105	5.3%	33,519	5.2%	98.3%
Operating gross profit	181,573	28.1%	179,463	27.9%	98.8%
Selling, general and administrative expenses	145,791	22.6%	144,745	22.5%	99.3%
Personnel expenses	67,805	10.5%	66,831	10.4%	98.6%
Depreciation	15,243	2.4%	15,267	2.4%	100.2%
Amortization of goodwill	737	0.1%	532	0.1%	72.3%
Rental expenses	11,526	1.8%	11,248	1.7%	97.6%
Utilities expenses	7,482	1.2%	7,986	1.2%	106.7%
Advertising expenses	9,643	1.5%	9,647	1.5%	100.0%
Other	33,352	5.2%	33,230	5.2%	99.6%
Operating profit	35,781	5.5%	34,717	5.4%	97.0%
Non-operating income	1,893	0.3%	1,600	0.2%	84.5%
Interest and dividend income	243	0.0%	224	0.0%	92.1%
Non-operating expenses	1,597	0.2%	1,621	0.3%	101.5%
Interest expenses	700	0.1%	555	0.1%	79.3%
Ordinary profit	36,078	5.6%	34,696	5.4%	96.2%
Extraordinary income	3,610	0.6%	1,039	0.2%	28.8%
Extraordinary losses	4,835	0.7%	1,456	0.2%	30.1%
Profit before income taxes	34,852	5.4%	34,280	5.3%	98.4%
Total income taxes	10,306	1.6%	10,758	1.7%	104.4%
Profit attributable to non-controlling interests	1,493	0.2%	317	0.0%	21.3%
Profit attributable to owners of parent	23,053	3.6%	23,204	3.6%	100.7%

1) Segment Information

Total

2) Financial Results of Major Subsidiaries

Company	Business / Segment	Year ended Feb. 28, 2021	Year ended Feb. 28, 2022	YoY
YOU-ME CARD CO., LTD.	Finance	Operating revenue	9,393	9,181	97.7%
Retail-peripheral operations	Operating profit	2,060	2,157	104.7%
IZUMI TECHNO Co., Ltd.	Store management	Operating revenue	13,882	14,863	107.1%
Retail-peripheral operations	Operating profit	1,549	1,760	113.6%
IZUMI FOOD SERVICE CO., LTD.	Food services	Operating revenue	4,626	5,277	114.1%
Retail-peripheral operations	Operating profit	-303	74	－
Youme Mart Kumamoto Co., Ltd.	Retail	Operating revenue	27,975	28,083	100.4%
Retail operations	Operating profit	1,245	872	70.1%
Youme Mart Kitakyushu Co., Ltd.	Retail	Operating revenue	28,715	27,746	96.6%
Retail operations	Operating profit	1,033	850	82.3%
YOURS Co., Ltd.	Retail	Operating revenue	24,094	23,364	97.0%
Retail operations	Operating profit	582	409	70.4%

Amount	% of Total	Amount	% of Total	YoY
659,977	97.1%	656,914	97.1%	99.5%
94,786	13.9%	96,419	14.2%	101.7%
5,297	0.8%	5,079	0.8%	95.9%
-80,283	-11.8%	-81,611	-12.1%	-
679,778	100.0%	676,800	100.0%	99.6%
(Operating profit)
Retail operations	31,217	87.2%	29,589	85.2%	94.8%
Retail-peripheral operations	3,458	9.7%	4,321	12.4%	125.0%
Other	1,172	3.3%	1,004	2.9%	85.6%
Adjustment	-67	-0.2%	-198	-0.6%	-
35,781	100.0%	34,717	100.0%	97.0%
2

(Operating revenue)

Retail operations

Retail-peripheral operations

Other

Adjustment

3. Consolidated Balance Sheets

As of Feb. 28, 2021	As of Feb. 28, 2022
Amount	% of Total	Amount	% of Total	Change
Total assets	489,692	100.0%	468,798	100.0%	- 20,894
Cash and deposits	25,306	5.2%	11,621	2.5%	- 13,685
Notes and accounts receivable - trade	42,497	8.7%	42,794	9.1%	+ 297
Merchandise and finished goods	21,661	4.4%	20,381	4.3%	- 1,279
Property, plant and equipment	330,539	67.5%	329,367	70.3%	- 1,171
Leasehold and guarantee deposits	16,909	3.5%	15,846	3.4%	- 1,063
Investment securities	9,876	2.0%	8,729	1.9%	- 1,147
Other	42,900	8.8%	40,057	8.5%	- 2,843
Liabilities	244,281	49.9%	206,364	44.0%	- 37,916
Notes and accounts payable - trade	47,367	9.7%	29,697	6.3%	- 17,669
Interest-bearing liabilities	109,414	22.3%	99,366	21.2%	- 10,048
Other	87,499	17.9%	77,301	16.5%	- 10,198
Net assets	245,411	50.1%	262,433	56.0%	+ 17,021
Treasury shares	-30	0.0%	-800	-0.2%	- 769
Other	232,526	47.5%	249,489	53.2%	+ 16,963
Non-controlling interests	12,915	2.6%	13,744	2.9%	+ 828

*Change in the number of issued shares

Year ended	Year ended
Feb. 28, 2021	Feb. 28, 2022
Total number of issued shares	at the beginning of the period	71,665,200	71,665,200
at the end of the period (A)	71,665,200	71,665,200
Treasury shares, etc.	at the beginning of the period	7,346	8,106
at the end of the period (B)	8,106	187,562
(Acquired during the period)	760	200,717
(Share-based remuneration)	0	21,261
(Cancelled during the period)	0	0
A－B	71,657,094	71,477,638
(Average during the period)	71,657,606	71,517,631

4. Consolidated Statements of Cash Flows

(Unit: millions of yen)

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022
Cash flows from operating activities	+ 48,320	+ 18,577
Profit before income taxes	+ 34,852	+ 34,280
Non-cash loss/gain (depreciation, etc.)	+ 18,311	+ 17,348
Increase/decrease in claims and obligations related to operating activities	+ 6,045	- 20,515
Income taxes and interest income	- 9,543	- 13,077
Other	- 1,345	+ 542
Cash flows from investing activities	- 6,633	- 14,246
Capital investment related	- 13,921	- 16,336
Other	+ 7,287	+ 2,089
Cash flows from financing activities	- 25,361	- 18,016
Interest-bearing liabilities related	- 19,536	- 10,960
Other	- 5,825	- 7,056
Increase/decrease in cash and cash equivalents	+ 16,324	- 13,685

5. IZUMI CO., LTD.: Income Statement and Other Financial Information

1) Statement of Income

(Unit: millions of yen)

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022
Amount	% of Sales	Amount	% of Sales	YoY
Operating revenue	634,583	-	632,836	-	99.7%
Net sales	603,041	100.0%	601,881	100.0%	99.8%
Gross profit	117,561	19.5%	116,432	19.3%	99.0%
Operating revenue	31,541	5.2%	30,954	5.1%	98.1%
Real estate lease revenue	8,148	1.4%	8,125	1.4%	99.7%
Distribution center revenue	9,517	1.6%	9,217	1.5%	96.8%
Store lease joint management expense revenue	8,851	1.5%	8,470	1.4%	95.7%
Other	5,024	0.8%	5,141	0.9%	102.3%
Operating gross profit	149,102	24.7%	147,387	24.5%	98.8%
Selling, general and administrative expenses	119,973	19.9%	119,321	19.8%	99.5%
Personnel expenses	48,025	8.0%	47,142	7.8%	98.2%
Depreciation	13,132	2.2%	12,910	2.1%	98.3%
Rental expenses	9,751	1.6%	9,684	1.6%	99.3%
Store management expenses	10,135	1.7%	10,649	1.8%	105.1%
Utilities expenses	5,824	1.0%	6,221	1.0%	106.8%
Advertising expenses	8,108	1.3%	8,173	1.4%	100.8%
Other	24,996	4.1%	24,539	4.1%	98.2%
Operating profit	29,128	4.8%	28,065	4.7%	96.3%
Non-operating income	1,571	0.3%	1,288	0.2%	82.0%
Interest and dividend income	335	0.1%	329	0.1%	98.0%
Non-operating expenses	1,280	0.2%	1,080	0.2%	84.4%
Interest expenses	727	0.1%	605	0.1%	83.2%
Ordinary profit	29,420	4.9%	28,273	4.7%	96.1%
Extraordinary income	579	0.1%	466	0.1%	80.6%
Extraordinary losses	4,455	0.7%	1,027	0.2%	23.1%
Profit before income taxes	25,544	4.2%	27,712	4.6%	108.5%
Profit	17,461	2.9%	19,140	3.2%	109.6%

2) Sales Information

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022
Amount	% of Total	Amount	% of Total	YoY
(By Product)
Lifestyle	89,854	14.9%	87,609	14.6%	97.5%
Foods	231,751	38.4%	227,820	37.9%	98.3%
Directly managed stores total	321,606	53.3%	315,430	52.4%	98.1%
Tenants	208,863	34.6%	215,647	35.8%	103.2%
X-SELL Department	11,706	1.9%	10,845	1.8%	92.6%
Product supply, etc.	60,866	10.1%	59,958	10.0%	98.5%
Total	603,041	100.0%	601,881	100.0%	99.8%
(By Region)
Chugoku	252,960	41.9%	249,878	41.5%	98.8%
Kyushu	224,469	37.2%	225,587	37.5%	100.5%
Other	125,611	20.8%	126,415	21.0%	100.6%
Total	603,041	100.0%	601,881	100.0%	99.8%

* From March 2021, the Company implemented organizational changes, such as combining and reorganizing the Clothing Department and the Household Goods Department, and making them the Lifestyle Division.

Accordingly, results for the year ended Feb. 28, 2021 have been adjusted to figures after these organizational changes.

3) YoY Sales at

Existing Stores

(Excluding X-SELL Department)

4) Gross Profit Ratio

5) Average Number of

Employees during the Period

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022
Lifestyle	77.6%	99.9%
Foods	101.3%	99.2%
Directly managed stores total	93.5%	99.4%
Tenants	84.2%	103.8%
Total	89.7%	101.1%
Chugoku	93.0%	100.4%
Kyushu	87.2%	101.0%
Number of customers	89.4%	99.4%
Average spent per customer	104.5%	99.9%
Average spent per item	97.4%	102.0%
Number of purchases	107.3%	98.0%

* From March 2021, the Company implemented organizational changes, such as combining and reorganizing the Clothing Department and the Household Goods Department, and making them the Lifestyle Division. Accordingly, results for the year ended Feb. 28, 2021 have been adjusted to figures after these organizational changes.

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022
Lifestyle	35.6%	35.6%
Foods	27.7%	28.2%
Directly managed stores total	29.9%	30.3%
Tenants	8.6%	8.3%
X-SELL Department	25.8%	26.0%
Product supply, etc.	0.5%	0.5%
Total	19.5%	19.3%
(Loss rate)
Lifestyle	6.3%	7.2%
Foods	2.5%	2.3%
Directly managed stores total	3.5%	3.6%
(Inventory turnover in days)
Lifestyle	79.3	72.5
Foods	9.2	8.9
Directly managed stores total	28.5	26.4

* From March 2021, the Company implemented organizational changes, such as combining and reorganizing the Clothing Department and the Household Goods Department, and making them the Lifestyle Division. Accordingly, results for the year ended Feb. 28, 2021 have been adjusted to figures after these organizational changes.

Year ended Feb. 28, 2021	Year ended Feb. 28, 2022
Full employees	2,968	2,912
Semi-full employees (8-hour equivalent)	5,971	5,822
Part-time employees (8-hour equivalent)	3,973	3,702
Total	12,912	12,436
(% of Total)
Full employees	23.0%	23.4%
Semi-full employees (8-hour equivalent)	46.2%	46.8%
Part-time employees (8-hour equivalent)	30.8%	29.8%
Total	100.0%	100.0%
(Indicators: Directly managed stores and X-SELL Department)
Net sales per employee	25,815 thousand yen	26,236 thousand yen
Gross profit per employee	7,683 thousand yen	7,903 thousand yen
Personnel expenses per employee	3,720 thousand yen	3,791 thousand yen
Personnel expenses/sales ratio	14.4%	14.4%
Personnel expenses/gross profit ratio	48.4%	48.0%

* Number of full employees at the end of period: 2,907 in the year ended Feb. 28, 2021; 2,857 in the year ended Feb. 28, 2022

5