SHIMAMURA : Summary of Consolidated Financial Results for the Year Ended February 20, 2021(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended February 20, 2021

(Based on Japanese GAAP)

																				April 5, 2021
Company name:	SHIMAMURA Co.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	8227	URL https://www.shimamura.gr.jp/
Representative:	President and Representative Director	Makoto Suzuki
Inquiries:	Planning Section General Manager		Makoto Oota	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	May 14, 2021
Scheduled date to file Securities Report:				May 17, 2021
Scheduled date to commence dividend payments:				May 17, 2021
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for analysts and institutional investors)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 20, 2021 (from February 21, 2020 to February 20, 2021)
(1) Consolidated operating results												Percentages indicate year-on-year changes
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
		Millions of yen			%	Millions of yen		%	Millions of yen	%		Millions of yen		%
Year ended February 20, 2021	542,608			4.0	38,026		65.4		39,404	65.2		26,163		99.3
Year ended February 20, 2020	521,982			(4.4)	22,985		(9.7)		23,855	(9.1)	13,125		(17.9)
		Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
									parent/equity
			Yen		Yen				%						%				%
Year ended February 20, 2021	711.93			-				7.0						9.2				7.0
Year ended February 20, 2020	357.15			-				3.6						5.9				4.4
(2) Consolidated financial position
		Total assets		Net assets	Equity ratio	Net assets per share
		Millions of yen	Millions of yen					%						Yen
As of February 20, 2021			451,798				384,388					85.1				10,459.72
As of February 20, 2020			407,981				365,901					89.7				9,956.38
(3) Consolidated cash flows
		Cash flows from		Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financing activities		at end of period
		Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended February 20, 2021			46,234			(111,324)					(7,362)						10,486
Year ended February 20, 2020			22,803				13,658					(6,631)						83,088
2. Cash dividends
						Annual dividends per share						Total cash		Dividend payout	Ratio of dividends
																to net assets
		1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
		Yen				Yen	Yen				Yen	Yen	Millions of yen		%			%
Year ended February 20, 2020	-		100.00	-			100.00	200.00		7,350		56.0			2.0
Year ended February 20, 2021	-		100.00	-			120.00	220.00		8,084		30.9			2.2
Year ending February 20, 2022	-		110.00	-			110.00	220.00				30.8
(Forecast)

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3. Forecast of consolidated financial results for the year ending February 20, 2022 (from February 21, 2021 to February 20, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending	273,430	7.5	19,654	23.0	19,826	21.1	13,098	24.4	356.41
August 20, 2021
Full year	554,837	2.3	38,646	1.6	39,594	0.5	26,277	0.4	715.03

4. Notes

(1) Changes in significant subsidiaries during the year ended February 20, 2021

(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	Yes
Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of February 20, 2021	36,913,299	shares	As of February 20, 2020	36,913,299	shares
Number of treasury shares at the end of the period
	As of February 20, 2021	163,942	shares	As of February 20, 2020	162,831	shares
Average number of shares during the period
	Year ended February 20, 2021	36,750,009	shares	Year ended February 20, 2020	36,751,190	shares

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CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

			(Millions of yen)
		As of February 20, 2020	As of February 20, 2021
Assets
Current assets
Cash and deposits	26,088	18,486
Accounts receivable - trade	5,971	6,622
Securities	152,006	193,000
Merchandise	51,646	50,612
Other	4,400	7,649
Total current assets	240,113	276,371
Non-current assets
Property, plant and equipment
Buildings and structures	156,139	172,970
Accumulated depreciation	(80,831)	(85,101)
Buildings and structures, net	75,308	87,868
Machinery, equipment and vehicles	11,170	11,527
Accumulated depreciation	(9,713)	(10,061)
Machinery, equipment and vehicles, net	1,456	1,466
Tools, furniture and fixtures	3,653	3,712
Accumulated depreciation	(3,002)	(3,083)
Tools, furniture and fixtures, net	651	628
Land	49,140	49,148
Construction in progress	4,525	547
Total property, plant and equipment	131,082	139,659
Intangible assets
Other	1,023	903
Total intangible assets	1,023	903
Investments and other assets
Investment securities	10,164	10,317
Deferred tax assets	1,991	3,494
Guarantee deposits	21,942	19,733
Other	1,720	2,521
Allowance for doubtful accounts	(57)	(1,201)
Total investments and other assets	35,762	34,865
Total non-current assets	167,868	175,427
Total assets		407,981	451,798

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			(Millions of yen)
		As of February 20, 2020	As of February 20, 2021
Liabilities
Current liabilities
Accounts payable - trade	18,661	24,024
Income taxes payable	4,475	10,996
Provision for bonuses	2,200	4,760
Provision executive officer's bonuses	37	-
Provision for point card certificates	157	333
Other	11,626	18,510
Total current liabilities	37,158	58,625
Non-current liabilities
Provision for part-time employees retirement	1,041	1,071
Provision for retirement benefits for directors (and other	167	115
officers)
Provision for executive officer's retirement benefits	192	137
Retirement benefit liability	1,215	1,332
Asset retirement obligations	2,115	5,824
Other	189	304
Total non-current liabilities	4,921	8,785
Total liabilities	42,079	67,410
Net assets
Shareholders' equity
Share capital	17,086	17,086
Capital surplus	18,637	18,637
Retained earnings	327,567	346,301
Treasury shares	(1,400)	(1,411)
Total shareholders' equity	361,890	380,614
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,766	3,912
Deferred gains or losses on hedges	29	16
Foreign currency translation adjustment	295	(132)
Remeasurements of defined benefit plans	(80)	(22)
Total accumulated other comprehensive income	4,011	3,773
Total net assets	365,901	384,388
Total liabilities and net assets		407,981	451,798

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		February 20, 2020	February 20, 2021
Net sales	521,982	542,608
Cost of sales	352,307	358,515
Gross profit	169,675	184,092
Operating revenue	912	952
Operating gross profit	170,587	185,045
Selling, general and administrative expenses	147,602	147,018
Operating profit	22,985	38,026
Non-operating income
Interest income	261	214
Dividend income	180	175
Gain on sales of investment securities	-	459
Compensation for transfer	15	155
Foreign exchange gains	84	98
Gain on sales of packaging materials	167	134
Miscellaneous income	179	147
Total non-operating income	888	1,384
Non-operating expenses
Provision of allowance for doubtful accounts	9	-
Loss on processed gift certificates	2	2
Miscellaneous loss	5	4
Total non-operating expenses	18	7
Ordinary profit	23,855	39,404
Extraordinary income
Subsidies for employment adjustment	-	51
Gain on reversal of foreign currency translation adjustment	-	398
Total extraordinary income	-	450
Extraordinary losses
Loss on sales and retirement of non-current assets	129	233
Impairment loss	2,577	706
Loss on disaster	262	129
Loss on store closings	-	118
Loss on valuation of investment securities	-	185
Other	91	33
Total extraordinary losses	3,061	1,408
Profit before income taxes	20,793	38,446
Income taxes - current	8,085	13,867
Income taxes - deferred	(418)	(1,585)
Total income taxes	7,667	12,282
Profit	13,125	26,163
Profit attributable to owners of parent		13,125	26,163

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Consolidated statements of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	February 20, 2020	February 20, 2021
Profit	13,125	26,163
Other comprehensive income
Valuation difference on available-for-sale securities	231	145
Deferred gains or losses on hedges	26	(13)
Foreign currency translation adjustment	13	(427)
Remeasurements of defined benefit plans, net of tax	57	58
Total other comprehensive income	328	(237)
Comprehensive income	13,454	25,926
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	13,454	25,926
Comprehensive income attributable to non-controlling	-	-
interests

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Consolidated statements of changes in equity

Fiscal year ended February 20, 2020

												(Millions of yen)
						Shareholders' equity
	Share capital		Capital surplus		Retained earnings		Treasury shares	Total shareholders'
					equity
Balance at beginning of period	17,086	18,637		321,056			(1,387)		355,393
Changes during period
Dividends of surplus							(6,615)					(6,615)
Profit attributable to owners of							13,125					13,125
parent
Purchase of treasury shares										(13)		(13)
Net changes in items other than
shareholders' equity
Total changes during period		-			-		6,510			(13)		6,497
Balance at end of period	17,086	18,637		327,567			(1,400)		361,890
			Accumulated other comprehensive income
	Valuation									Total
			Foreign currency	Remeasurements	accumulated
	difference on	Deferred gains or	Total net assets
		translation	of defined benefit	other
	available-for-	losses on hedges
		adjustment	plans		comprehensive
	sale securities
									income
Balance at beginning of period	3,534		3		282			(138)	3,682	359,076
Changes during period
Dividends of surplus												(6,615)
Profit attributable to owners of												13,125
parent
Purchase of treasury shares												(13)
Net changes in items other than	231		26		13			57	328	328
shareholders' equity
Total changes during period	231		26		13			57	328	6,825
Balance at end of period	3,766		29		295			(80)	4,011	365,901

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Fiscal year ended February 20, 2021

												(Millions of yen)
						Shareholders' equity
	Share capital		Capital surplus		Retained earnings		Treasury shares	Total shareholders'
					equity
Balance at beginning of period	17,086	18,637		327,567			(1,400)		361,890
Changes during period
Dividends of surplus							(7,350)					(7,350)
Profit attributable to owners of							26,163					26,163
parent
Purchase of treasury shares										(11)		(11)
Decrease in retained earnings
resulting from exclusion of							(78)					(78)
subsidiaries from consolidation
Net changes in items other than
shareholders' equity
Total changes during period		-			-		18,734			(11)		18,723
Balance at end of period	17,086	18,637		346,301			(1,411)		380,614
			Accumulated other comprehensive income
	Valuation									Total
			Foreign currency	Remeasurements	accumulated
	difference on	Deferred gains or	Total net assets
		translation	of defined benefit	other
	available-for-	losses on hedges
		adjustment	plans		comprehensive
	sale securities
									income
Balance at beginning of period	3,766		29		295			(80)	4,011	365,901
Changes during period
Dividends of surplus												(7,350)
Profit attributable to owners of												26,163
parent
Purchase of treasury shares												(11)
Decrease in retained earnings
resulting from exclusion of												(78)
subsidiaries from consolidation
Net changes in items other than	145		(13)		(427)			58	(237)	(237)
shareholders' equity
Total changes during period	145		(13)		(427)			58	(237)	18,486
Balance at end of period	3,912		16		(132)			(22)	3,773	384,388

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CONSOLIDATED STATEMENTS OF CASH FLOWS

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		February 20, 2020	February 20, 2021
Cash flows from operating activities
Profit before income taxes	20,793	38,446
Depreciation	5,374	5,471
Impairment loss	2,577	706
Loss on store closings	-	118
Foreign exchange losses (gains)	(82)	(123)
Loss (gain) on sales and retirement of non-current assets	41	101
Loss (gain) on sales of investment securities	-	(459)
Loss (gain) on valuation of investment securities	-	185
Gain on reversal of foreign currency translation adjustment	-	(398)
Increase (decrease) in allowance for doubtful accounts	13	(2)
Increase (decrease) in provision for bonuses	(16)	2,559
Increase(decrease) in provision for executive officer's bonuses	6	(37)
Increase (decrease) in provision for point card certificates	42	176
Increase(drcrease) in provision for part-time employees	22	29
retirement
Increase (decrease) in provision for retirement benefits for	1	(51)
directors (and other officers)
Increase(decrease)in provision for executive officer's	65	(55)
retirement benefits
Increase (decrease) in retirement benefit liability	236	194
Interest and dividend income	(441)	(389)
Decrease (increase) in trade receivables	(1,285)	(652)
Decrease (increase) in inventories	(1,085)	1,036
Decrease (increase) in other current assets	393	(3,497)
Increase (decrease) in trade payables	67	5,412
Increase (decrease) in other current liabilities	2,132	4,024
Other, net	519	764
Subtotal	29,376	53,561
Interest and dividends received	224	210
Income taxes paid	(6,797)	(7,538)
Net cash provided by (used in) operating activities	22,803	46,234
Cash flows from investing activities
Payments into time deposits	(16,000)	(16,000)
Proceeds from withdrawal of time deposits	16,000	16,000
Purchase of securities	(222,000)	(442,000)
Proceeds from redemption of securities	237,000	336,006
Purchase of property, plant and equipment	(3,568)	(8,280)
Proceeds from sales of property, plant and equipment	33	104
Proceeds from sales of intangible assets	-	2
Purchase of investment securities	(168)	(295)
Proceeds from sales of investment securities	-	622
Payments for guarantee deposits, advances of construction	(1,174)	(679)
Proceeds from collection of guarantee deposits, advances of	3,526	3,206
construction
Other, net	10	(10)
Net cash provided by (used in) investing activities		13,658	(111,324)

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		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	February 20, 2020	February 20, 2021
Cash flows from financing activities
Purchase of treasury shares	(13)	(11)
Dividends paid	(6,617)	(7,351)
Net cash provided by (used in) financing activities	(6,631)	(7,362)
Effect of exchange rate change on cash and cash equivalents	(2)	31
Net increase (decrease) in cash and cash equivalents	29,827	(72,420)
Cash and cash equivalents at beginning of period	53,260	83,088
Decrease in cash and cash equivalents resulting from exclusion of	-	(181)
subsidiaries from consolidation
Cash and cash equivalents at end of period	83,088	10,486

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