United Arrows : Financial Results for the Third Quarter Ended December 31, 2019 (Consolidated)

February 6, 2020

	Consolidated Financial Summary
	for the Nine Months Ended December 31, 2019
	〔Japanese GAAP〕
	Note: Figures smaller than one million yen are rounded down.
Listed Company Name:	UNITED ARROWS LTD.
Securities Traded:	First Section of the Tokyo Stock Exchange
Code Number:	7606
URL:	http://www.united-arrows.co.jp/en/
Representative:	Mitsuhiro Takeda, Representative Director, President and CEO
Contact:	Takeo Nakazawa, Department Manager, Finance and Accounting Department
Telephone:	[phone]

Scheduled Date of Reporting Date:	February 14, 2020
Scheduled Date of Dividend Payment:	-
Supplementary materials for the financial results:	Yes
Holding of presentation of financial results:	Yes (for institutional investors and analysts)

1. Consolidated Business Results for the Nine-Month Period of the Fiscal Year Ending March 31, 2020 (April 1, 2019 to December 31, 2019)

1. Consolidated Business Performance (aggregate)

(% indicates increase / decrease YoY)

	Total Sales	Operating Profit	Ordinary Profit	Net Income attributable
	to owners of parent
Nine months ended	¥ million	%		¥ million	%		¥ million	%	¥ million	%
December 31, 2019	119,093	1.1		8,886	(7.3)		8,906	(8.2)	4,687	(18.9)
December 31, 2018	117,829	2.3		9,586	(2.1)		9,706	(2.4)	5,781	0.6
Note: Comprehensive	income: Nine months ended December 31, 2019: ¥5,126 million (-15.8%)
	Nine months ended December 31, 2018: ¥6,086 million (3.9%)
	Net Income per		Net Income per Share
		after Adjusting for
	Share
		Dilutive Effects
Nine months ended		yen			yen
December 31, 2019		165.20			－
December 31, 2018		203.79			－

Note: There are no dilutive shares as of December 31, 2018 and 2019.

(2) Consolidated Financial Conditions

	Total Assets	Net Assets	Equity Ratio	Per-share net worth
	¥ million	¥ million	%	¥
As of December 31, 2019	86,521	44,097	46.0	1,403.45
As of March 31, 2019	70,738	39,578	53.5	1,333.16

Reference: Shareholders' equity: December 31, 2019: ¥39,823 million March 31, 2019: ¥37,828 million

2. Conditions of Dividend Payment

			Annual Dividend
	1Q End	2Q End	3Q End	Fiscal Year End	Annual
	yen	yen	yen	yen	yen
Fiscal year ended March 31, 2019	-	20.00	-	60.00	80.00
Fiscal year ending March 31, 2020	-	22.00
Fiscal year ending March 31, 2020 (Est.)			-	61.00	83.00

Note: Revision to recently disclosed projected dividend payment: None

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3. Projected Consolidated Performance of the Fiscal Year Ending March 2020 (From April 1, 2019 to March 31, 2020)

							(% indicates increase / decrease YoY)
	Total Sales	Operating Profit	Ordinary Profit	Net Income	Net Income
	attributable to
	per share
							owners of parent
	¥ million	%	¥ million	%	¥ million	%	¥ million	%	yen
Full Fiscal Year	161,240	1.5	10,870	(1.8)	10,900	(3.6)	5,300	(17.4)	186.78

Note: Revision to recently disclosed projected consolidated performance: Yes

4. Others

1. Changes in Significant Subsidiaries during the Current Quarter: None (Changes in special subsidiaries that caused a change in scope of consolidation)
2. Adoption of Special Accounting Methods for Preparing Quarterly Consolidated Financial Statements: None
3. Changes in Accounting Principles, Procedures, Methods of Presentation and Other Items

1. Changes due to revision of accounting standards: None
2. Changes other than 1: None
3. Changes in accounting estimates: None
4. Restatement of prior period financial statements after error corrections: None

1. Number of Stocks Issued (Common Stocks)

1.	Number of stocks issued at term end (including treasury stock)
	As of December 31, 2019:	30,213,676 stocks
	As of March 31, 2019:	30,213,676 stocks
2.	Number of treasury stock
	As of December 31, 2019:	1,838,346 stocks
	As of March 31, 2019:	1,838,256 stocks
3. Average number of stocks issued and outstanding for the period
	Nine months ended December 31, 2019:	28,375,357 stocks
	Nine months ended December 31, 2018:	28,371,934 stocks

*The quarterly financial statements are not subject to quarterly reviews.

*Explanation regarding appropriate use of projected business performance

The above projection was made based on information available at present. Please note in advance that potential risks and uncertainties are included. The actual figures might differ from the figures stated above due to any possible factor.

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Consolidated Financial Results

(1) Quarterly Consolidated Balance Sheet

		(millions of yen)
	At the end of	At the end of
	the previous fiscal year	the third quarter
	(March 31, 2019)	(December 31, 2019)
Assets
Current assets
Cash and deposits	6,103	10,758
Notes and accounts receivable-trade	186	132
Merchandise	24,407	31,257
Supplies	581	644
Accounts receivable-other	12,587	17,659
Other	670	832
Allowance for doubtful accounts	(3)	(3)
Total current assets	44,533	61,282
Noncurrent assets
Tangible noncurrent assets
Buildings and structures (net)	8,195	8,132
Machinery and equipment (net)	930	813
Other (net)	1,747	1,629
Total tangible noncurrent assets	10,873	10,574
Intangible noncurrent assets
Other	2,783	2,879
Total intangible noncurrent assets	2,783	2,879
Investments and other assets
Guarantee deposits	8,180	8,292
Other	4,389	3,514
Allowance for doubtful accounts	(22)	(22)
Total investments and other assets	12,548	11,784
Total noncurrent assets	26,205	25,238
Total assets	70,738	86,521
Liabilities
Current liabilities
Notes and accounts payable-trade	10,648	14,365
Short-term loans payable	2,100	12,760
Current portion of long-term loans payable	1,500	-
Income taxes payable	1,673	1,029
Provision for bonuses	2,340	780
Provision for directors' bonuses	111	81
Other	8,707	9,107
Total current liabilities	27,082	38,123
Noncurrent liabilities
Asset retirement obligations	4,054	4,278
Other	23	21
Total noncurrent liabilities	4,078	4,300
Total liabilities	31,160	42,424
Net assets
Shareholders' equity
Capital stock	3,030	3,030
Capital surplus	4,278	4,435
Retained earnings	36,335	38,167
Treasury stock	(5,833)	(5,833)
Total shareholders' equity	37,810	39,799
Accumulated other comprehensive income
Deferred gains or losses on hedges	(8)	5
Foreign currency translation adjustment	27	18
Total accumulated other comprehensive income	18	23
Non-controlling interests	1,749	4,273
Total net assets	39,578	44,097
Total liabilities and net assets	70,738	86,521

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1. Statements of Consolidated Income and Comprehensive Income Statements of Consolidated Income

Third Quarter (Nine Months Aggregate)			(millions of yen)
	Nine months ended		Nine months ended
	December 31, 2018		December 31, 2019
	(April 1, 2018 to		(April 1, 2019 to
	December 31, 2018)		December 31, 2019)
Net sales	117,829		119,093
Cost of sales	55,679		56,432
Gross profit	62,149		62,660
Selling, general and administrative expenses	52,562		53,774
Operating income	9,586		8,886
Non-operating income
Interest income	0		0
Foreign exchange gains		-	53
Purchase discounts	48		47
Rent income	17		18
Other	121		117
Total non-operating income	187		237
Non-operating expenses
Interest expenses	16		13
Rent expenses	17		19
Share of loss of entities accounted for using equity method		-	126
Other	33		57
Total non-operating expenses	67		217
Ordinary income	9,706		8,906
Extraordinary loss
Loss on retirement of noncurrent assets	66		43
Impairment loss	326		988
Other	46		13
Total extraordinary loss	440		1,045
Income before income taxes	9,266		7,860
Income taxes-current	2,516		2,273
Income taxes-deferred	733		472
Total income taxes	3,250		2,746
Net income	6,016		5,113
Net income attributable to non-controlling interests	234		426
Net income attributable to owners of parent	5,781		4,687

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Statements of Consolidated Comprehensive Income

Third Quarter (Nine Months Aggregate)		(millions of yen)
	Nine months ended	Nine months ended
	December 31, 2018	December 31, 2019
	(April 1, 2018 to	(April 1, 2019 to
	December 31, 2018)	December 31, 2019)
Net income	6,016	5,113
Other comprehensive income
Deferred gains or losses on hedges	58	21
Foreign currency translation adjustment	11	(9)
Total other comprehensive income	70	12
Comprehensive income	6,086	5,126
Comprehensive income attributable to:
Owners of the parent company	5,844	4,693
Non-controlling interests	241	433

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(3) Consolidated Cash Flows

	(millions of yen)
Nine months ended	Nine months ended
December 31, 2018	December 31, 2018
(April 1, 2018 to	(April 1, 2019 to
December 31, 2018)	December 31, 2019)

Cash flows from operating activities

Income before income taxes

Depreciation

Depreciation of intangible assets

Amortization of long-term prepaid expenses

Impairment loss

Increase (decrease) in provision for bonuses

Increase (decrease) in provision for directors' bonuses Increase (decrease) in allowance for doubtful accounts Interest and dividends income

Interest expenses

Decrease (increase) in notes receivable

Decrease (increase) in inventories

Decrease (increase) in other current assets

Increase (decrease) in trade payables

Increase (decrease) in other current liabilities

Share of loss of entities accounted for using equity method Other

Subtotal

Interest and dividends income received

Interest expenses paid

Income taxes paid

Net cash provided by operating activities

Cash flows from investment activities

9,266	7,860
1,375	1,457
340	311
126	332
326	988
(1,479)	(1,559)
(9)	(30)
(2)	(0)
(0)	(0)
16	13
(3,771)	(3,285)
(4,800)	(6,913)
(43)	(100)
4,572	4,451
(1,201)	699
-	126
75	139
4,791	4,491
0	0
(16)	(13)
(2,232)	(2,784)
2,543	1,693

Payments into time deposits	(9)	(9)
Purchase of property, plant and equipment	(3,344)	(1,796)
Payments for asset retirement obligations	(129)	(122)
Purchase of intangible assets	(680)	(1,029)
Purchase of long-term prepaid expenses	(1,032)	(232)
Payment for guarantee deposits	(318)	(268)
Proceeds from collection of guarantee deposits	259	156
Other	0	(101)
Net cash provided by investment activities	(5,255)	(3,403)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable	7,650	10,660
Repayment of long-term loans payable	(1,500)	(1,500)
Cash dividends paid	(2,482)	(2,794)
Other	-	(0)
Net cash provided by financing activities	3,667	6,365
Effect of exchange rate change on cash and cash equivalents	12	(9)
Increase (decrease) in cash and cash equivalents	967	4,645
Cash and cash equivalents at beginning of term	6,300	5,839
Cash and cash equivalents at end of term	7,268	10,484

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