ABC Mart : Summary of Consolidated Financial Results for the Six Months Ended August 31, 2021(Q2 FY2022)

Summary of Consolidated Financial Results

for the Six Months Ended August 31, 2021(Q2 FY2022)

(Based on Japanese GAAP)

October 13, 2021

Company name:

ABC-MART, INC.

Stock exchange listing:

Tokyo

Stock code:

2670

URL

https://www.abc-mart.co.jp/ir/

Representative:

President and Representative Director

Minoru Noguchi

Inquiries:

Director, Corporate Planning Office Manager Jo Kojima

TEL [phone]

Scheduled date to file Quarterly Securities Report:

October 14, 2021

Scheduled date to commence dividend payments:

November 15, 2021

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended August 31, 2021 (from March 1, 2021 to August 31, 2021)

(1) Consolidated operating results (cumulative)

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

%

Six months ended August 31, 2021

121,301

18.7

14,306

67.5

14,764

60.7

10,463

88.8

Six months ended August 31, 2020

102,152

(27.1)

8,538

(66.3)

9,190

(64.4)

5,542

(68.0)

(Note) Comprehensive income:

Six months ended August 31, 2021

14,056 million yen (115.8%)

Six months ended August 31, 2020

6,513 million yen (△56.0%)

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended August 31, 2021

126.77

-

Six months ended August 31, 2020

67.15

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of August 31, 2021

318,768

285,983

89.3

3,447.34

As of February 28, 2021

317,832

278,943

87.3

3,363.55

(Reference) Shareholders' Equity:

As of August 31, 2021

284,540 million yen

As of February 28, 2021

277,624 million yen

2. Cash dividends

Annual dividends per share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Year ended February 28, 2021

-

85.00

-

85.00

170.00

Year ending February 28, 2022

-

85.00

Year ending February 28, 2022 (Forecast)

-

85.00

170.00

(Note) Revisions to dividend forecasts published most recently:

No

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 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

Full year

254,600

15.6

30,400

55.8

31,200

46.6

20,950

9.0

253.82

(Note) Revisions to financial forecasts published most recently: Yes

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4. Notes

1. Changes in significant subsidiaries during the six months ended August 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) 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:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of August 31, 2021	82,539,646	shares	As of February 28, 2021	82,539,646	shares
Number of treasury shares at the end of the period
	As of August 31, 2021	470	shares	As of February 28, 2021	470	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended August 31, 2021	82,539,176	shares	Six months ended August 31, 2020	82,539,176	shares

THIS QUARTERLY CONSOLIDATED FINANCIAL RESULTS STATEMENT IS EXEMPT FROM THE QUARTERLY REVIEW PROCEDURES.

FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMS

The forecast for the year ending February 28, 2022 is based on ABC-MART, INC.'s hypotheses, plans and estimates at the date of publication. It is possible that some uncertain factors will cause the Company's future performance to differ significantly from the contents of forecast.

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 28, 2021	As of August 31, 2021
Assets
Current assets
Cash and deposits	138,669	134,501
Notes and accounts receivable - trade	10,275	10,029
Securities	7,957	9,624
Inventories	63,356	67,390
Other	4,997	4,697
Allowance for doubtful accounts	(34)	(44)
Total current assets	225,222	226,200
Non-current assets
Property, plant and equipment
Buildings and structures	33,283	34,493
Accumulated depreciation	(17,900)	(18,545)
Buildings and structures, net	15,382	15,947
Tools, furniture and fixtures	16,091	16,909
Accumulated depreciation	(11,092)	(12,232)
Tools, furniture and fixtures, net	4,998	4,676
Land	17,078	16,323
Construction in progress	221	760
Other	457	461
Accumulated depreciation	(391)	(400)
Other, net	66	61
Total property, plant and equipment	37,748	37,769
Intangible assets
Trademark right	740	580
Goodwill	1,199	885
Other	3,126	3,719
Total intangible assets	5,066	5,185
Investments and other assets
Investment securities	17,161	17,729
Shares of subsidiaries and associates	2,563	2,563
Long-term loans receivable	1,495	1,452
Leasehold and guarantee deposits	25,453	25,399
Deferred tax assets	2,523	1,991
Other	613	492
Allowance for doubtful accounts	(16)	(16)
Total investments and other assets	49,795	49,612
Total non-current assets	92,610	92,567
Total assets		317,832	318,768

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			(Millions of yen)
		As of February 28, 2021	As of August 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	14,468	13,057
Short-term borrowings	1,232	1,356
Income taxes payable	8,720	5,244
Provision for bonuses	996	1,010
Provisions	237	174
Asset retirement obligations	152	176
Notes payable - facilities	782	1,409
Other	10,554	8,414
Total current liabilities	37,145	30,843
Non-current liabilities
Retirement benefit liability	552	758
Asset retirement obligations	359	356
Other	831	826
Total non-current liabilities	1,743	1,940
Total liabilities	38,888	32,784
Net assets
Shareholders' equity
Share capital	19,972	19,972
Capital surplus	24,043	24,043
Retained earnings	224,811	228,259
Treasury shares	(2)	(2)
Total shareholders' equity	268,825	272,273
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,229	3,650
Foreign currency translation adjustment	6,569	8,616
Total accumulated other comprehensive income	8,799	12,267
Non-controlling interests	1,318	1,443
Total net assets	278,943	285,983
Total liabilities and net assets		317,832	318,768

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Six months ended	Six months ended
		August 31, 2020	August 31, 2021
Net sales	102,152	121,301
Cost of sales	50,563	58,329
Gross profit	51,589	62,971
Selling, general and administrative expenses
Packing and transportation costs	1,709	1,875
Advertising expenses	2,782	3,079
Storage costs	1,548	1,442
Remuneration, salaries and allowances for directors (and other	11,300	12,827
officers)
Bonuses	378	387
Provision for bonuses	1,024	1,009
Retirement benefit expenses	251	446
Legal and other welfare expenses	1,978	1,930
Rent expenses on land and buildings	11,523	13,398
Depreciation	2,419	2,624
Utilities expenses	962	992
Commission expenses	2,802	3,435
Taxes and dues	763	818
Amortization of goodwill	388	385
Other	3,218	4,011
Total selling, general and administrative expenses	43,050	48,665
Operating profit	8,538	14,306
Non-operating income
Interest income	39	33
Dividend income	222	51
Rent Income	469	525
Foreign exchange gains	-	52
Advertising medium income	17	17
Other	240	109
Total non-operating income	988	789
Non-operating expenses
Interest expenses	2	18
Foreign exchange losses	11	-
Rental expenses	219	283
Other	104	30
Total non-operating expenses	337	331
Ordinary profit		9,190	14,764

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