ABC Mart : Summary of Consolidateｄ Financial Results for the Fiscal Year Ended February 28, 2021

Summary of Consolidated Financial Results for the Year Ended February 28, 2021(FY2021) (Based on Japanese GAAP)

Company name:	ABC-MART, INC.																										April 14, 2021
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 of ordinary general meeting of shareholders:	May 27, 2021
Scheduled date to file Securities Report:									May 31, 2021
Scheduled date to commence dividend payments:							May 28, 2021
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:											Yes		(for institutional investors and analysts)
																		(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 28, 2021 (from March 1, 2020 to February 28, 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 28, 2021			220,267		(19.1)		19,513		(55.0)				21,283		(52.0)	19,226		(35.3)
Year ended February 29, 2020			272,361		2.1		43,374			(1.3)				44,325		(1.8)	29,706		(1.9)
(Note) Comprehensive income:
Year ended February 2021 21,165 million yen (-24.9%)	Year ended February 2020	28,175 million yen (0.8%)
										Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
		Earnings per share					owners of
												share				parent/equity							assets				sales
							Yen					Yen						%								%				%
Year ended February 28, 2021					232.94					-					7.0								6.8				8.9
Year ended February 29, 2020					359.92					-					11.2								14.6				15.9
(Reference) Equity in earnings of affiliated companies:
Year ended February 2021	- million yen	Year ended February 2020	- million yen
(2) Consolidated financial position
				Total assets				Net assets			Equity ratio	Net assets per share
				Millions of yen			Millions of yen							%							Yen
As of February 28, 2021					317,832						278,943							87.3					3,363.55
As of February 29, 2020					311,084						271,809							87.0					3,279.24
(Reference) Shareholders' Equity:
As of February 28, 2021	277,624 million yen					As of February 29, 2020		270,665 million yen
(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 28, 2021					23,487						(11,316)							(15,016)						146,454
Year ended February 29, 2020					34,547						(9,029)							(15,652)						149,173
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 29, 2020			-				85.00			-			85.00	170.00		14,031		47.2		5.3
Year ended February 28, 2021			-				85.00			-			85.00	170.00		14,031		73.0		5.1
Year ending February 28, 2022			-				85.00			-			85.00	170.00						67.0
(Forecast)
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
												1

4. Notes

(1)	Changes in significant subsidiaries during the year ended February 28, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(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:	No
	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 28, 2021	82,539,646 shares	As of February 29, 2020		82,539,646	shares
Number of treasury shares at the end of the period
	As of February 28, 2021			470 shares	As of February 29, 2020		470 shares
Average number of shares during the period
	Year ended February 28, 2021	82,539,176 shares	Year ended February 29, 2020		82,535,555 shares
(Reference) Summary of Nonconsolidated Financial Statements
1. Nonconsolidated financial results for the year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)
(1) Nonconsolidated operating results						Percentages indicate year-on-year changes
		Net sales		Operating income	Ordinary income	Net income
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Year ended February 28, 2021	151,909 (21.7)	16,828	(55.8)	19,043	(51.9)	18,611	(31.3)
Year ended February 29, 2020	194,029	1.4	38,072	(0.8)	39,554	(1.5)	27,097	(0.3)
	Net income per share	Diluted net income
				per share
		Yen		Yen
Year ended February 28, 2021	225.49			-
Year ended February 29, 2020	328.31			-
(2) Nonconsolidated financial position
		Total assets		Net assets	Equity ratio		Net assets per share
		Millions of yen	Millions of yen		%		Yen
As of February 28, 2021	278,123			245,962		88.4	2,979.94
As of February 29, 2020	270,444			239,156		88.4	2,897.49
(Reference) Shareholders' Equity:
	As of February 28, 2021 245,962 million yen		As of February 29, 2020 239,156 million yen

2. Forecast of nonconsolidated 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		Ordinary income		Net income		Net income per share
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
86,430	22.9	12,890	52.6	8,590	66.1	104.07
August 31, 2021
Full year	177,600	16.9	28,080	47.5	18,740	0.7	227.04

THIS CONSOLIDATED FINANCIAL RESULTS STATEMENT AND THIS FINANCIAL RESULTS STATEMENT ARE EXEMPT FROM THE AUDIT 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.

2

Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 29, 2020	As of February 28, 2021
Assets
Current assets
Cash and deposits	149,344	138,669
Notes and accounts receivable - trade	10,493	10,275
Securities	-	7,957
Inventories	68,011	63,356
Other	5,990	4,997
Allowance for doubtful accounts	(36)	(34)
Total current assets	233,803	225,222
Non-current assets
Property, plant and equipment
Buildings and structures	31,559	33,283
Accumulated depreciation	(16,789)	(17,900)
Buildings and structures, net	14,770	15,382
Tools, furniture and fixtures	14,935	16,091
Accumulated depreciation	(9,643)	(11,092)
Tools, furniture and fixtures, net	5,292	4,998
Land	17,029	17,078
Construction in progress	372	221
Other	452	457
Accumulated depreciation	(397)	(391)
Other, net	55	66
Total property, plant and equipment	37,520	37,748
Intangible assets
Trademark right	1,162	740
Goodwill	2,054	1,199
Other	2,697	3,126
Total intangible assets	5,914	5,066
Investments and other assets
Investment securities	33	17,161
Shares of subsidiaries and associates	2,647	2,563
Long-term loans receivable	1,660	1,495
Leasehold and guarantee deposits	25,522	25,453
Deferred tax assets	3,357	2,523
Other	639	613
Allowance for doubtful accounts	(17)	(16)
Total investments and other assets	33,845	49,795
Total non-current assets	77,280	92,610
Total assets		311,084	317,832

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			(Millions of yen)
		As of February 29, 2020	As of February 28, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	16,413	14,468
Short-term borrowings	2,216	1,232
Income taxes payable	7,150	8,720
Provision for bonuses	985	996
Provisions	219	237
Asset retirement obligations	23	152
Notes payable - facilities	1,045	782
Other	9,114	10,554
Total current liabilities	37,170	37,145
Non-current liabilities
Retirement benefit liability	799	552
Asset retirement obligations	453	359
Other	852	831
Total non-current liabilities	2,105	1,743
Total liabilities	39,275	38,888
Net assets
Shareholders' equity
Share capital	19,972	19,972
Capital surplus	24,043	24,043
Retained earnings	219,616	224,811
Treasury shares	(2)	(2)
Total shareholders' equity	263,630	268,825
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	4	2,229
Foreign currency translation adjustment	7,030	6,569
Total accumulated other comprehensive income	7,035	8,799
Non-controlling interests	1,143	1,318
Total net assets	271,809	278,943
Total liabilities and net assets		311,084	317,832

4

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

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		February 29, 2020	February 28, 2021
Net sales	272,361	220,267
Cost of sales	129,087	110,004
Gross profit	143,273	110,262
Selling, general and administrative expenses
Packing and transportation costs	3,695	3,594
Advertising expenses	6,991	6,239
Storage costs	3,041	3,037
Remuneration, salaries and allowances for directors (and other	26,964	23,877
officers)
Bonuses	1,729	1,752
Provision for bonuses	984	995
Retirement benefit expenses	652	294
Legal and other welfare expenses	4,042	3,834
Rent expenses on land and buildings	27,567	24,788
Depreciation	4,902	5,103
Utilities expenses	2,173	1,989
Commission expenses	6,590	5,857
Taxes and dues	1,786	1,608
Amortization of goodwill	783	764
Other	7,994	7,010
Total selling, general and administrative expenses	99,899	90,748
Operating profit	43,374	19,513
Non-operating income
Interest income	136	59
Dividend income	1	695
Foreign exchange gains	-	315
Rent Income	1,011	968
Advertising medium income	37	34
Other	494	367
Total non-operating income	1,681	2,441
Non-operating expenses
Interest expenses	9	6
Foreign exchange losses	88	-
Rental expenses	539	516
Other	93	147
Total non-operating expenses	730	671
Ordinary profit		44,325	21,283

5

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		February 29, 2020	February 28, 2021
Extraordinary income
Gain on sales of non-current assets	5	5
Gain on sales of investment securities	-	9,221
Employment adjustment subsidies for covid19	-	849
Total extraordinary income	5	10,076
Extraordinary losses
Loss on retirement of non-current assets	192	210
Impairment loss	767	628
Loss due to covid19	-	1,389
Other	1	16
Total extraordinary losses	960	2,245
Profit before income taxes	43,369	29,115
Income taxes - current	13,792	9,874
Income taxes - deferred	(381)	(144)
Total income taxes	13,410	9,729
Profit	29,958	19,385
Profit attributable to non-controlling interests	252	159
Profit attributable to owners of parent		29,706	19,226

6

Consolidated statements of comprehensive income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	February 29, 2020	February 28, 2021
Profit	29,958	19,385
Other comprehensive income
Valuation difference on available-for-sale securities	(3)	2,225
Foreign currency translation adjustment	(1,779)	(445)
Total other comprehensive income	(1,783)	1,779
Comprehensive income	28,175	21,165
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	27,907	20,990
Comprehensive income attributable to non-controlling	268	174
interests

7

Consolidated statements of changes in equity

Fiscal year ended February 29, 2020

					(Millions of yen)
			Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders'
	equity
Balance at beginning of period	19,972	23,979	205,591	(2)	249,542
Changes during period
Dividends of surplus			(15,681)		(15,681)
Profit attributable to owners			29,706		29,706
of parent
Purchase of treasury shares				(0)	(0)
Increase by merger		63			63
Net changes in items other
than shareholders' equity
Total changes during period	-	63	14,025	(0)	14,088
Balance at end of period	19,972	24,043	219,616	(2)	263,630
	Accumulated other comprehensive income
				Non-controlling
	Valuation difference on	Foreign currency	Total accumulated	Total net assets
	available-for-sale	other comprehensive	interests
	translation adjustment
	securities	income
Balance at beginning of period	8	8,825	8,833	938	259,315
Changes during period
Dividends of surplus					(15,681)
Profit attributable to owners					29,706
of parent
Purchase of treasury shares					(0)
Increase by merger					63
Net changes in items other	(3)	(1,795)	(1,798)	204	(1,594)
than shareholders' equity
Total changes during period	(3)	(1,795)	(1,798)	204	12,494
Balance at end of period	4	7,030	7,035	1,143	271,809

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Fiscal year ended February 28, 2021

					(Millions of yen)
			Shareholders' equity
	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders'
	equity
Balance at beginning of period	19,972	24,043	219,616	(2)	263,630
Changes during period
Dividends of surplus			(14,031)		(14,031)
Profit attributable to owners			19,226		19,226
of parent
Net changes in items other
than shareholders' equity
Total changes during period	-	-	5,195	-	5,195
Balance at end of period	19,972	24,043	224,811	(2)	268,825
	Accumulated other comprehensive income
				Non-controlling
	Valuation difference on	Foreign currency	Total accumulated	Total net assets
	available-for-sale	other comprehensive	interests
	translation adjustment
	securities	income
Balance at beginning of period	4	7,030	7,035	1,143	271,809
Changes during period
Dividends of surplus					(14,031)
Profit attributable to owners					19,226
of parent
Net changes in items other	2,225	(461)	1,764	174	1,939
than shareholders' equity
Total changes during period	2,225	(461)	1,764	174	7,134
Balance at end of period	2,229	6,569	8,799	1,318	278,943

9

Consolidated statements of cash flows

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		February 29, 2020	February 28, 2021
Cash flows from operating activities
Profit before income taxes	43,369	29,115
Depreciation	5,085	5,406
Increase (decrease) in provision for bonuses	69	10
Increase (decrease) in allowance for doubtful accounts	(5)	(0)
Interest and dividend income	(138)	(755)
Interest expenses	9	6
Foreign exchange losses (gains)	56	(281)
Loss (gain) on sales of investment securities	-	(9,221)
Loss (gain) on sales and retirement of non-current assets	187	204
Impairment loss	767	628
Decrease (increase) in trade receivables	(633)	239
Decrease (increase) in inventories	(2,930)	4,253
Increase (decrease) in trade payables	2,253	(1,177)
Other, net	647	2,919
Subtotal	48,737	31,347
Interest and dividends received	132	397
Interest paid	(9)	(5)
Income taxes paid	(14,312)	(8,251)
Net cash provided by (used in) operating activities	34,547	23,487
Cash flows from investing activities
Payments into time deposits	(5)	-
Purchase of property, plant and equipment	(6,674)	(5,367)
Proceeds from sales of property, plant and equipment	101	12
Purchase of intangible assets	(1,051)	(1,237)
Purchase of short-term and long-term investment securities	-	(93,586)
Proceeds from sales of short-term and long-term investment	-	88,944
securities
Payments for store removal	(95)	(96)
Loan advances	(120)	(100)
Collection of loans receivable	268	269
Payments of leasehold and guarantee deposits	(2,053)	(1,478)
Proceeds from refund of leasehold and guarantee deposits	715	1,473
Other payments	(157)	(155)
Other proceeds	43	5
Net cash provided by (used in) investing activities	(9,029)	(11,316)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	24	(984)
Dividends paid	(15,676)	(14,032)
Other payments	(0)	(0)
Net cash provided by (used in) financing activities	(15,652)	(15,016)
Effect of exchange rate change on cash and cash equivalents	(436)	126
Net increase (decrease) in cash and cash equivalents	9,429	(2,719)
Cash and cash equivalents at beginning of period	139,743	149,173
Cash and cash equivalents at end of period		149,173	146,454

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