ABC Mart : Summary of Consolidated Financial Results for the Three Months Ended May 31, 2021 (Q1 FY2022)

Summary of Consolidated Financial Results

for the Three Months Ended May 31, 2021(Q1 FY2022)

(Based on Japanese GAAP)

July 14, 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

03-3476-5452

Scheduled date to file Quarterly Securities Report:

July 15, 2021

Scheduled date to commence dividend payments:

-

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 three months ended May 31, 2021 (from March 1, 2021 to May 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

%

Three months ended May 31, 2021

62,625

43.6

8,305

255.7

8,653

211.4

5,373

407.7

Three months ended May 31, 2020

43,609

(41.6)

2,334

(83.7)

2,778

(80.8)

1,058

(89.2)

(Note) Comprehensive income:

Three months ended May 2021 9,366 million yen (883.2%)

Three months ended May 2020

952 million yen (△89.9%)

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended May 31, 2021

65.10

-

Three months ended May 31, 2020

12.82

-

The quarterly consolidated financial statements for the first quarter of the previous fiscal year have been reclassified. For details, please refer to the attached document.

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of May 31, 2021

317,813

281,294

88.1

3,390.35

As of February 28, 2021

317,832

278,943

87.3

3,363.55

(Reference) Shareholders' Equity:

As of May 31, 2021

279,836 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

-

Year ending February 28, 2022 (Forecast)

85.00

-

85.00

170.00

(None) Revisions to dividend forecasts published most recently: None

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		Earnings per share
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
123,900	21.3	13,300	55.8	13,650	48.5	8,910	60.8	107.95
August 31, 2021
Full year	259,700	17.9	30,400	55.8	31,100	46.1	20,930	8.9	253.58

(None) Revisions to financial forecasts published most recently: None

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4. Notes

1. Changes in significant subsidiaries during the three months ended May 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 May 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 May 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)
	Three months ended May 31, 2021	82,539,176	shares	Three months ended May 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 May 31, 2021
Assets
Current assets
Cash and deposits	138,669	129,155
Notes and accounts receivable - trade	10,275	13,012
Securities	7,957	8,228
Inventories	63,356	68,398
Other	4,997	4,406
Allowance for doubtful accounts	(34)	(47)
Total current assets	225,222	223,154
Non-current assets
Property, plant and equipment
Buildings and structures	33,283	34,292
Accumulated depreciation	(17,900)	(18,160)
Buildings and structures, net	15,382	16,132
Tools, furniture and fixtures	16,091	16,806
Accumulated depreciation	(11,092)	(11,732)
Tools, furniture and fixtures, net	4,998	5,074
Land	17,078	17,114
Construction in progress	221	452
Other	457	462
Accumulated depreciation	(391)	(399)
Other, net	66	62
Total property, plant and equipment	37,748	38,835
Intangible assets
Trademark right	740	679
Goodwill	1,199	1,084
Other	3,126	3,455
Total intangible assets	5,066	5,220
Investments and other assets
Investment securities	17,161	18,344
Shares of subsidiaries and associates	2,563	2,563
Long-term loans receivable	1,495	1,474
Leasehold and guarantee deposits	25,453	25,889
Retirement benefit asset	-	3
Deferred tax assets	2,523	1,721
Other	613	623
Allowance for doubtful accounts	(16)	(16)
Total investments and other assets	49,795	50,603
Total non-current assets	92,610	94,659
Total assets		317,832	317,813

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			(Millions of yen)
		As of February 28, 2021	As of May 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	14,468	16,291
Short-term borrowings	1,232	1,481
Income taxes payable	8,720	3,109
Provision for bonuses	996	1,737
Provisions	237	199
Asset retirement obligations	152	177
Notes payable - facilities	782	1,386
Other	10,554	10,260
Total current liabilities	37,145	34,644
Non-current liabilities
Retirement benefit liability	552	700
Asset retirement obligations	359	352
Other	831	821
Total non-current liabilities	1,743	1,875
Total liabilities	38,888	36,519
Net assets
Shareholders' equity
Share capital	19,972	19,972
Capital surplus	24,043	24,043
Retained earnings	224,811	223,169
Treasury shares	(2)	(2)
Total shareholders' equity	268,825	267,183
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	2,229	4,071
Foreign currency translation adjustment	6,569	8,581
Total accumulated other comprehensive income	8,799	12,653
Non-controlling interests	1,318	1,457
Total net assets	278,943	281,294
Total liabilities and net assets		317,832	317,813

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		May 31, 2020	May 31, 2021
Net sales	43,609	62,625
Cost of sales	21,110	29,601
Gross profit	22,498	33,024
Selling, general and administrative expenses
Packing and transportation costs	775	964
Advertising expenses	1,413	1,701
Storage costs	784	752
Remuneration, salaries and allowances for directors (and other	5,288	6,499
officers)
Bonuses	-	0
Provision for bonuses	710	777
Retirement benefit expenses	119	193
Legal and other welfare expenses	1,049	951
Rent expenses on land and buildings	5,019	6,692
Depreciation	1,115	1,273
Utilities expenses	428	461
Commission expenses	1,273	1,724
Taxes and dues	373	401
Amortization of goodwill	195	190
Other	1,616	2,135
Total selling, general and administrative expenses	20,164	24,719
Operating profit	2,334	8,305
Non-operating income
Interest income	30	18
Dividend income	222	25
Foreign exchange gains	-	108
Rent Income for house	238	266
Advertising medium income	8	8
Other	115	76
Total non-operating income	615	503
Non-operating expenses
Interest expenses	1	0
Foreign exchange losses	42	-
Rental expenses	114	144
Other	11	10
Total non-operating expenses	170	154
Ordinary profit		2,778	8,653

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