ABC Mart : Summary of Consolidated Financial Results for the Three Months Ended May 31, 2022(Q1 FY2023) (Based on Japanese GAAP)

Summary of Consolidated Financial Results

for the Three Months Ended May 31, 2022(Q1 FY2023)

(Based on Japanese GAAP)

July 13, 2022

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 14, 2022

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, 2022 (from March 1, 2022 to May 31, 2022)

(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, 2022

69,171

10.5

10,533

26.8

10,763

24.4

7,017

30.6

Three months ended May 31, 2021

62,625

43.6

8,305

255.7

8,653

211.4

5,373

407.7

(Note) Comprehensive income:

Three months ended May 2022 11,610 million yen (24.0%)

Three months ended May 2021

9,366 million yen (883.2%)

Earnings per share

Diluted earnings per share

Yen

Yen

Three months ended May 31, 2022

85.02

-

Three months ended May 31, 2021

65.10

-

(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement

No.29, revised on March 31, 2020), etc.

from the beginning of the three months ended May 31, 2022.

(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, 2022

331,827

289,475

86.7

3,486.43

As of February 28, 2022

317,720

284,881

89.2

3,432.30

(Reference) Shareholders' Equity:
	As of May 31, 2022	287,766 million yen	As of February 28, 2022	283,298 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, 2022						-			85.00					-		85.00	170.00
	Year ending February 28, 2023						-
	Year ending February 28, 2023 (Forecast)						85.00					-		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, 2023 (from March 1, 2022 to February 28, 2023)
															Percentages indicate year-on-year changes
			Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
					owners of parent
	Six months ending	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
		132,200		9.0		15,900	11.1	16,000	8.4		10,500	0.4	127.21
	August 31, 2022
	Full year		271,700		11.4		32,000	16.6	32,200	13.9		20,900	20.2	253.21
	(Note) Revisions to financial forecasts published most recently: No
										1

4. Notes

1. Changes in significant subsidiaries during the three months ended May 31, 2022 (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:	Yes
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, 2022	82,539,646	shares	As of February 28, 2022	82,539,646	shares
Number of treasury shares at the end of the period
	As of May 31, 2022	506	shares	As of February 28, 2022	472	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended May 31, 2022	82,539,160	shares	Three months ended May 31, 2021	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, 2023 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.

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 28, 2022	As of May 31, 2022
Assets
Current assets
Cash and deposits	141,767	136,973
Notes and accounts receivable - trade	11,091	14,477
Securities	10,181	11,314
Inventories	59,847	67,969
Other	4,180	8,244
Allowance for doubtful accounts	(145)	(157)
Total current assets	226,923	238,821
Non-current assets
Property, plant and equipment
Buildings and structures	34,711	35,571
Accumulated depreciation	(19,233)	(19,340)
Buildings and structures, net	15,478	16,231
Tools, furniture and fixtures	17,116	17,763
Accumulated depreciation	(12,757)	(13,366)
Tools, furniture and fixtures, net	4,359	4,397
Land	19,198	19,253
Construction in progress	293	308
Other	438	432
Accumulated depreciation	(394)	(389)
Other, net	44	42
Total property, plant and equipment	39,373	40,232
Intangible assets
Trademark right	393	300
Goodwill	509	322
Other	3,935	4,133
Total intangible assets	4,837	4,756
Investments and other assets
Investment securities	14,567	15,970
Shares of subsidiaries and associates	609	804
Long-term loans receivable	1,450	1,388
Leasehold and guarantee deposits	25,960	26,682
Retirement benefit asset	1	8
Deferred tax assets	3,416	2,587
Other	596	592
Allowance for doubtful accounts	(16)	(17)
Total investments and other assets	46,585	48,016
Total non-current assets	90,796	93,005
Total assets		317,720	331,827

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			(Millions of yen)
		As of February 28, 2022	As of May 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade	13,161	19,880
Short-term borrowings	1,350	2,056
Income taxes payable	4,884	3,940
Contract liabilities	-	665
Provision for bonuses	984	1,724
Provisions	226	204
Asset retirement obligations	205	10
Notes payable - facilities	933	1,277
Other	9,521	10,806
Total current liabilities	31,268	40,565
Non-current liabilities
Retirement benefit liability	313	501
Asset retirement obligations	345	556
Other	911	727
Total non-current liabilities	1,570	1,785
Total liabilities	32,838	42,351
Net assets
Shareholders' equity
Share capital	19,972	19,972
Capital surplus	24,043	24,043
Retained earnings	228,162	228,164
Treasury shares	(2)	(2)
Total shareholders' equity	272,176	272,177
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,991	3,926
Foreign currency translation adjustment	9,131	11,662
Total accumulated other comprehensive income	11,122	15,588
Non-controlling interests	1,582	1,709
Total net assets	284,881	289,475
Total liabilities and net assets		317,720	331,827

4

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, 2021	May 31, 2022
Net sales	62,625	69,171
Cost of sales	29,601	32,365
Gross profit	33,024	36,806
Selling, general and administrative expenses
Packing and transportation costs	964	974
Advertising expenses	1,701	1,490
Storage costs	752	688
Remuneration, salaries and allowances for directors (and other	6,499	6,848
officers)
Bonuses	0	0
Provision for bonuses	777	778
Retirement benefit expenses	193	233
Legal and other welfare expenses	951	1,065
Rent expenses on land and buildings	6,692	7,443
Depreciation	1,273	1,354
Utilities expenses	461	562
Commission expenses	1,724	1,975
Taxes and dues	401	393
Amortization of goodwill	190	209
Other	2,135	2,253
Total selling, general and administrative expenses	24,719	26,273
Operating profit	8,305	10,533
Non-operating income
Interest income	18	27
Dividend income	25	66
Foreign exchange gains	108	-
Rent Income for house	266	236
Advertising medium income	8	8
Other	76	44
Total non-operating income	503	382
Non-operating expenses
Interest expenses	0	1
Foreign exchange losses	-	5
Rental expenses	144	108
Other	10	36
Total non-operating expenses	154	152
Ordinary profit		8,653	10,763

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