Summary of Consolidated Financial Statements

For the Second Quarter Ended June 30, 2020

(Japan GAAP)

August 13, 2020

Name of the Company: ASICS Corporation

Listing Exchanges: Tokyo

Code No.: 7936

URL: https://corp.asics.com/en/

President and COO, Representative Director: Yasuhito Hirota

Date of filing Securities Report by quarter: August 14, 2020

Date of scheduled payment of dividends: -

Quarterly Results Supplemental Materials: Yes

Quarterly Results Presentation Meeting: Yes (For institutional investors and analysts in Japan)

(Amounts less than one million yen are truncated)

1. Consolidated results for the second quarter ended June 30, 2020 (January 1, 2020 - June 30, 2020)

  1. Consolidated business results (Accumulated)

(The percentages indicate the rates of increase or decrease compared with the corresponding period of the previous fiscal year)

Net sales

Operating income

Ordinary income

Profit attributable to

owners of parent

MY

%

MY

%

MY

%

MY

%

2nd quarter ended June 30, 2020

146,897

(21.5)

(3,873)

-

(5,982)

-

(6,266)

-

2nd quarter ended June 30, 2019

187,204

(2.9)

8,589

1.1

9,968

53.5

5,504

60.9

(Note) Comprehensive income: 2nd quarter ended June 30, 2020: ¥ (9,583) million (- %) 2nd quarter ended June 30, 2019: ¥ 1,158 million (- %)

Net income

Diluted net

per share

income per share

Yen

Yen

2nd quarter ended June 30, 2020

(34.29)

-

2nd quarter ended June 30, 2019

29.16

28.55

(2)

Consolidated financial position

Total assets

Net assets

Shareholders'

equity ratio

MY

MY

%

As of June 30, 2020

333,864

139,811

41.7

As of December 31, 2019

316,115

152,323

48.0

(Reference) Shareholders' equity: June 30, 2020:

¥ 139,249 million

December 31, 2019: ¥ 151,706 million

2.

Dividends

Cash dividend per share

(Record date)

End of 1st

End of 2nd

End of 3rd

End of year

Annual

quarter

quarter

quarter

Yen

Yen

Yen

Yen

Yen

FY ended December 31, 2019

-

12.00

-

18.00

30.00

FY ending December 31, 2020

-

0.00

FY

ending December 31, 2020

-

24.00

24.00

(Projected)

(Note) Changes in projected dividends: Yes

  • FY Ended December 31, 2019: Ordinary dividend 24.00 Yen, 70th anniversary commemorative dividend 6.00 Yen
    FY Ending December 31, 2020(Projected): Ordinary dividend 24.00 Yen

1

3. Forecast of consolidated business results for the fiscal year ending December 31, 2020 (January 1, 2020 - December 31, 2020)

(The full-year percentages indicate the rates of increase or decrease compared with the previous fiscal year)

Net sales

Operating income

Ordinary income

Profit attributable to

Net income per

owners of parent

share

MY

%

MY

%

MY

%

MY

%

Yen

Full-year

300,000

(20.6)

(14,000)

-

(17,000)

-

(22,000)

-

(120.21)

(Note) Changes in forecast of consolidated business results: Yes

  • Notes
  1. Changes in significant subsidiaries during the fiscal year (changes in specified subsidiaries that caused changes in the scope of consolidation): None
  2. Adopting accounting treatment simplified or specialized for quarterly consolidation: Yes
  3. Changes in accounting policy, changes in accounting estimates, and changes in presentation due to revisions
  • Changes in accounting policy to conform to revisions in accounting standards and others: Adopted: None
  • Changes in accounting policy adopted otherwise than in: None Changes in accounting estimates: None

Changes in presentation due to revisions: None

  1. Number of shares (of common stock) issued and outstanding

Number of shares outstanding (including treasury shares) at fiscal end:

June 30, 2020

189,870,559 shares

December 31, 2019

189,870,559 shares

  • Number of treasury shares at fiscal end:

June 30, 2020

6,850,532 shares

December 31, 2019

7,179,322 shares

  • Average number of shares during the term:

2nd quarter ended June 30, 2020

182,763,533 shares

2nd quarter ended June 30, 2019

188,756,638 shares

  • Summary of Consolidated Financial Statements is not subjected to quarterly review
  • Explanation of appropriate use of business performance forecasts; other special items(Notes to the description about future, other)

The performance forecasts above are estimated based on information available as of the date hereof. This may cause actual results to differ from stated projections due to changing business conditions or other factors.

(How to access supplemental materials on quarterly business results)

We plan to post the supplemental materials on business results on Company's website (https://corp.asics.com/en/investor_relations/library/financial_summary) on Thursday, August 13, 2020.

(How to access materials on the details of presentation meeting on business results)

The Company is scheduled to hold presentation meeting on business results for institutional investors and analysts on Friday, August 14, 2020. We plan to post the materials used in the meeting on the Company's website (https://corp.asics.com/en/investor_relations/library/financial_summary) on Thursday, August 13, 2020.

2

1. Qualitative information for consolidated business results

(1) Explanation on business results

Major initiatives during the second quarter ended June 30, 2020

Due to the global spread of the novel coronavirus disease (COVID-19), ASICS Group ("the Group") continued to face a challenging situation, such as cancellation or scale-down of various competitions, temporary closures of own retail stores and the slump in personal consumption. However, there were signs of recovery in some regions where economic activities were resumed.

  • The Group implemented the following initiatives to deal with the spread of COVID-19.
  • Digital

E-commerce sales increased worldwide.

Sales increased by 151% in North America, 139% in Europe, and 103% in consolidated level. In order to strengthen the digital field, the Group developed worldwide virtual races using ASICS Runkeeper and promoted METARACER by digital marketing such as social networking services when it was launched.

  • S.G.& A. expenses controls

The Group saved the S.G.& A. expenses globally, including marketing expenses, in order to improve profitability in the situation that the sales decreased due to the spread of COVID-19. Due in part to the transfer some expenses of own retail stores to extraordinary losses, S.G.& A. expenses were reduced by ¥6.2 billion compared to the last year, by ¥20.5 billion compared to the plan.

  • Inventory management

In response to the result of Q2 and second half sales environment, the Group have enhanced our inventory management, such as by canceling some production orders.

The Group also changed the schedule of new product launches in second half to optimize sales opportunities.

In addition, the Group grasped the status of inventories and returns in wholesale due to the temporary closures of stores, and promptly allocated inventories for e-commerce sales. Through these measures, the Group responded to the dramatic changes in the sales and distribution structure at each sales company.

  • In China, all own retail stores reopened in April, ahead of others in the world. Net sales increased by 23% during the Q2 period. E-commerce sales in June increased by 84%, due in part to an e-commerce event of comparable scale to "Single's Day".
  • For Performance Running, the Group launched the "Kayano 27", high-performance running shoes that pursue stability and comfortable running, and the "Metaracer", the most advanced running shoes in the history of ASICS with a built-in carbon plate. With the launch of METARACER, the Group now has a full lineup of shoes in the Performance Running category. The Group also enhanced product presentation videos to help people better understand our products and promoted our products by digital media through influencers and YouTubers.

3

    • For Onitsuka Tiger, the Group launched a brand campaign with worldwide artist Willow
      Smith who is our brand ambassador."
      In harmony with Ms. Willow, the Group has created an unprecedented worldview of the Onitsuka Tiger brand together.
    • For sustainability, the Group has released the "Sustainability Report 2019."
      In addition, corresponding to the effect of the spread of COVID-19 on the supply chain, the Group supported manufacturers to survive the economic disruption caused by the COVID-19 and to protect workers health and safety in response to the "Call to Action" by the International Labour Organization (ILO).
  2. Net sales

Net sales decreased 21.5% to ¥146,897 million as a result of factors such as temporary closures of own retail stores and our customers' retail stores due to the impact of COVID-19.

2) Gross profit

Gross profit decreased 20.7% to ¥70,583 million due to the impact of the decrease in net sales described above.

3) Operating loss

Operating loss was ¥3,873 million due to the impact of the decrease in net sales described above, as well as due to an increase in sales commissions, etc.

4) Ordinary loss

Ordinary loss was ¥5,982 million due to the above, as well as due mainly to the recording of foreign exchange loss resulting from the impact of the depreciation of currencies in countries with emerging economies.

5) Loss attributable to owners of parent

Loss attributable to owners of parent was ¥6,266 million due to the above, as well as due mainly to the recording of loss on temporary closing of stores despite the recording of income tax refunds at a subsidiary in the U.S.

Business results by category were as follows.

The results for the six months ended June 30, 2019 have been reclassified to reflect changes of the aggregation method for some categories that were made in the first quarter ended March 31, 2020.

(Millions of yen)

Net sales

Operating income

Category

FY2020

FY2019

Increase

FY2020

FY2019

Increase

Jan 1 to Jun 30

Jan 1 to Jun 30

(Decrease)

Jan 1 to Jun 30

Jan 1 to Jun 30

(Decrease)

Performance Running

70,936

83,573

(12,637)

2,627

2,985

(358)

Core Performance Sports

16,183

21,720

(5,537)

(1,072)

376

(1,448)

Sports Style

12,602

16,310

(3,708)

(838)

488

(1,326)

Apparel and Equipment

12,532

19,680

(7,148)

Deficit

Deficit

-

Onitsuka Tiger

15,682

22,921

(7,238)

737

5,136

(4,398)

4

1) Performance Running

Net sales decreased 15.1% to ¥70,936 million due to weak sales in the other regions as a result of the impact of the spread of COVID-19, despite an early recovery from the impact of COVID-19 in Greater China, as well as strong sales in the Oceanian region and a recovery in the North American region that led to an increase in monthly sales in June. Operating income decreased 12.0% to ¥2,627 million.

2) Core Performance Sports

Net sales decreased 25.5% to ¥16,183 million. Operating loss was ¥1,072 million.

3) Sports Style

Net sales decreased 22.7% to ¥12,602 million. Operating loss was ¥838 million.

4) Apparel and Equipment

Net sales decreased 36.3% to ¥12,532 million. An operating loss persisted.

5) Onitsuka Tiger

Net sales decreased 31.6% to ¥15,682 million. Operating income decreased 85.6% to ¥737 million.

Business results by reportable segments were as follows.

1) Japanese region

Net sales decreased 24.0% to ¥47,004 million due to the impact of the spread of COVID-19. Segment loss was ¥1,509 million due to the impact of the decrease in net sales described above, as well as due to increased costs of own retail stores.

2) North American region

Net sales decreased 27.1% to ¥28,414 million due to the impact of the spread of COVID-19. Segment loss was ¥2,134 million.

3) European region

Net sales decreased 20.5% to ¥37,094 million due to the impact of the spread of COVID-19. Segment income decreased 29.5% to ¥737 million mainly due to the impact of the decrease in net sales described above.

4) Greater China region

Net sales decreased 0.7% to ¥18,525 million due to the impact of the spread of COVID-19. Segment income decreased 32.6% to ¥2,133 million mainly due to the impact of the decrease in net sales described above.

5) Oceanian region

Net sales increased 1.4% to ¥8,587 million due to strong sales of the Performance Running category and the Sports Style category.

Segment income increased 4.8% to ¥1,087 million mainly due to the impact of the increase in net sales described above.

6) Southeast and South Asian regions

Net sales decreased 34.0% to ¥3,663 million due to the impact of the spread of COVID-19.

5

Segment loss was ¥71 million.

7) Other regions

Net sales decreased 34.8% to ¥11,993 million due to the impact of the spread of COVID-19 in South Korea and South America. Segment loss was ¥317 million.

(2) Explanation on financial position

As for the consolidated financial position as of June 30, 2020, total assets increased 5.6% from the end of the previous fiscal year to ¥333,864 million, total liabilities increased 18.5% from the end of the previous fiscal year to ¥194,052 million and net assets decreased 8.2% from the end of the previous fiscal year to ¥139,811 million.

1) Current assets

Current assets increased 9.0% to ¥233,809 million mainly due to an increase in cash and deposits.

2) Non-current assets

Non-current assets decreased 1.5% to ¥100,055 million mainly due to decreases in right of use assets and investment securities.

3) Current liabilities

Current liabilities increased 36.3% to ¥110,569 million mainly due to an increase in short-term bank loans.

4) Non-current liabilities

Non-current liabilities increased 1.0% to ¥83,482 million mainly due to an increase in long-term loans.

5) Shareholders' equity

Shareholders' equity decreased 5.9% to ¥146,320 million mainly due to a decrease in retained earnings.

6) Other comprehensive loss

Other comprehensive loss was ¥7,070 million mainly due to a decrease in translation adjustments.

As for cash flows as of June 30, 2020, cash and cash equivalents (hereinafter, "cash") increased ¥15,386 million from the end of the previous fiscal year to ¥53,371 million.

The respective cash flow positions and main factors behind the changes are as follows.

1) Cash flows from operating activities

Net cash used in operating activities was ¥9,113 million, an increase of ¥12,642 million compared with the same period in the previous fiscal year.

Major uses of cash were ¥16,364 million for an increase in inventories and ¥9,308 million for loss before income taxes, while major sources of cash were ¥11,200 million from a decrease in notes and accounts receivable-trade and ¥6,732 million from depreciation and amortization.

2) Cash flows from investing activities

Net cash used in investing activities was ¥5,181 million, an increase of ¥536 million compared with the same period in the previous fiscal year.

6

Major uses of cash were ¥2,920 million for purchases of intangible assets and ¥1,626 million for purchases of property, plant and equipment, while major sources of cash were ¥230 million in proceeds from withdrawal of time deposits.

3) Cash flows from financing activities

Net cash provided by financing activities was ¥30,777 million, an increase of ¥46,572 million compared with the same period in the previous fiscal year.

Major sources of cash were ¥35,176 million from an increase in short-term bank loans and ¥2,500 million in proceeds from long-term loans, while major uses of cash were ¥3,491 million for repayment of lease obligations and ¥3,289 million for cash dividends paid.

  1. Explanation on forecast for consolidated business results and others (Forecast of consolidated business results)

The forecast of business results for the fiscal year ending December 31, 2020 was undetermined due to the difficulty of reasonably forecasting the impact of the spread of COVID-19 on the business activities of the Group. However, as economic activity is gradually resuming with the lifting of state of emergency declarations and the relaxation of lockdown measures in Japan and abroad, we hereby announce that we have calculated the consolidated business results forecast based on the information currently available. For details, please refer to "Notice Concerning Consolidated Business Results Forecast and Projected Dividends for the Fiscal Year Ending December 31, 2020" announced today (August 13, 2020).

(Forecast of dividends)

The Company's basic policy for distribution of profits to our shareholders is to invest proactively to improve profitability in order to enhance our corporate value and net income per share while at the same time paying a stable dividend.

However, the Company regrettably determined to pass the interim dividend under the circumstances in which it is uncertain when the pandemic will end such as another major downturn in economic activity because of COVID 19, while the Company is projected to pay a year-end dividend of 24 yen per share. As a result, the current annual projected dividend is 24 yen per share, which is the same level of the fiscal year ended December 31, 2019 without the commemorative dividend.

These projected dividends are based on the assumption that the current business results forecast will remain unchanged while the actual results may differ significantly from this forecast due to various factors. In the event that matters to be disclosed occur, the Company will amend to the projected dividend.

(4) Information about risks related to COVID-19

The Annual Report for the fiscal year ended December 31, 2019 contains information about epidemics of infectious diseases, communicable diseases, etc. in (10) Risks associated with large-scale natural disasters or other events under RESPONSE TO MAJOR RISKS. However, if the COVID-19 pandemic is prolonged, there is a risk that the Company's financial position and business results may be affected.

7

Consolidated Balance Sheet

2.Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheet

ASICS Corporation and Consolidated Subsidiaries

As of June 30, 2020 and December 31, 2019

Millions of yen

ASSETS

June 30, 2020

December 31, 2019

Current assets：

Cash and deposits

￥

54,344

￥

39,199

Notes and accounts receivable :

Trade

51,775

65,191

Less allowance for doubtful receivables

(2,116)

(1,497)

Inventories

107,191

93,159

Other current assets

22,613

18,464

Total current assets

233,809

214,517

Property，plant and equipment:

Land

5,795

5,797

Buildings and structures

36,649

37,950

Machinery, equipment and vehicles

3,783

3,716

Tools, furniture and fixtures

28,722

28,931

Leased assets

8,426

8,319

Construction in progress

1,460

847

Less accumulated depreciation

(51,205)

(51,266)

Property, plant and equipment, net

33,632

34,296

Intangible assets:

Goodwill

2,539

2,830

Software

6,849

6,317

Right of use asset

23,135

24,479

Other intangible assets

7,660

6,734

Total intangible assets

40,185

40,362

Investments and other assets:

Investments in securities:

Investments in unconsolidated subsidiaries and affiliates

156

156

Other

8,915

9,724

Long-term loans receivable

54

59

Deferred income taxes

7,727

7,844

Other assets

10,073

9,852

Less allowance for doubtful receivables

(689)

(698)

Total investments and other assets

26,237

26,938

Total assets

￥

333,864

￥

316,115

  • There are some amount of difference between these consolidated financial statements and annual report due to the different treatment of rounding.

8

Consolidated Balance Sheet

Millions of yen

LIABILITIES AND NET ASSETS

June 30, 2020

December 31, 2019

Current liabilities:

Short-term bank loans

￥

41,270

￥

6,257

Current portion of long-term debt

7,447

7,371

Notes and accounts payable:

Trade

31,682

33,578

Accrued income taxes

1,241

2,282

Accrued expenses

14,834

18,051

Provision for sales returns

180

140

Provision for employees' bonuses

192

549

Asset retirement obligations

14

116

Other current liabilities

13,705

12,766

Total current liabilities

110,569

81,113

Long-term liabilities:

Long-term debt

67,770

66,970

Liabilities for retirement benefits

6,720

6,615

Asset retirement obligations

1,252

1,228

Deferred income taxes

1,510

1,508

Other long-term liabilities

6,229

6,356

Total long-term liabilities

83,482

82,678

Net assets:

Shareholders' equity :

Common stock:

23,972

23,972

Capital surplus

15,481

15,481

Retained earnings

117,244

126,967

Less treasury share, at cost

(10,378)

(10,959)

Total shareholders' equity

146,320

155,461

Accumulated other comprehensive income:

Unrealized holding gain on securities

985

2,054

Unrealized deferred gain on hedges

4,105

3,438

Translation adjustments

(11,886)

(8,941)

Retirement benefits liability adjustments

(273)

(306)

Total accumulated other comprehensive income

(7,070)

(3,754)

Stock acquisition rights

423

475

Non-controlling interests

139

141

Total net assets

139,811

152,323

Total liabilities and net assets

￥

333,864

￥

316,115

9

Consolidated Income Statement

(2) Consolidated Income Statement and Statement of Comprehensive Income

ASICS Corporation and Consolidated Subsidiaries

The second quarter ended June 30, 2020 and 2019

Millions of yen

The Second Quarter Ended

The Second Quarter Ended

June 30, 2020

June 30, 2019

Net sales

￥

146,897

￥

187,204

Cost of sales

76,314

98,186

Gross profit

70,583

89,017

Selling, general and administrative expenses *1

74,456

80,427

Operating (loss) income

(3,873)

8,589

Other income (expenses):

Interest and dividend income

319

611

Interest expense

(760)

(931)

Exchange (loss) gain, net

(1,902)

1,115

Gain on sales of investments in securities, net

1

1

Loss on sales or disposal of property, plant and equipment and other, net

(205)

(43)

Loss on valuation of investments in securities

(28)

(9)

Extra retirement payments *2

(588)

－

Loss on temporary closing of stores *3

(2,505)

－

Subsidy income

286

567

Other，net

(51)

16

(5,435)

1,328

(Loss) profit before income taxes

(9,308)

9,917

Income taxes:

Current/Deferred

1,011

4,262

Refunded *4

(4,057)

－

(3,045)

4,262

(Loss) profit

(6,263)

5,655

(Loss) profit attributable to:

Non-controlling interests

3

150

Owners of parent

￥

(6,266)

￥

5,504

10

Consolidated Statement of Comprehensive Income

ASICS Corporation and Consolidated Subsidiaries

The second quarter ended June 30, 2020 and 2019

Millions of yen

The Second Quarter Ended

The Second Quarter Ended

June 30, 2020

June 30, 2019

(Loss) profit

￥

(6,263)

￥

5,655

Other comprehensive (loss) income:

Unrealized holding loss on securities

(1,069)

(366)

Unrealized deferred gain (loss) on hedges

666

(230)

Translation adjustments

(2,950)

(3,924)

Retirement benefits liability adjustments

32

24

Total other comprehensive loss, net

(3,319)

(4,497)

Comprehensive (loss) income

￥

(9,583)

￥

1,158

Comprehensive (loss) income attributable to:

Owners of parent

￥

(9,581)

￥

1,021

Non-controlling interests

(1)

136

11

Consolidated Statement of Cash Flows

(3) Consolidated Statement of Cash Flows

ASICS Corporation and Consolidated Subsidiaries

The second quarter ended June 30, 2020 and 2019

Millions of yen

The Second Quarter Ended

The Second Quarter Ended

June 30, 2020

June 30, 2019

Operating activities:

(Loss) profit before income taxes

Adjustments to reconcile profit before income taxes to net cash provided by operating activities:

Depreciation and amortization Amortization of goodwill

Increase (decrease) in allowance for doubtful receivables Increase in liabilities for retirement benefits, net (Decrease) increase in provision for employees' bonuses Loss on impairment of investments in securities

Gain on sales of investments in securities, net Interest and dividend income

Interest expense Exchange loss, net

Loss on sales or disposal of property, plant and equipment and other, net Other, net

(Increase) decrease in operating assets: Notes and accounts receivable-trade Inventories

Other operating assets

Increase (decrease) in operating liabilities: Notes and accounts payable-trade Accrued consumption taxes

Other operating liabilities Subtotal

Interest and dividends received Interest paid

Business restructuring expenses paid Income taxes paid

Net cash (used in) provided by operating activities

Investing activities: Increase in time deposits

Proceeds from withdrawal of time deposits Purchases of property, plant and equipment Payments for disposal of property, plant and equipment Proceeds from sales of property, plant and equipment Purchases of intangible assets

Proceeds from sales of intangible assets Purchases of investments in securities

Proceeds from sales and redemption of investments in securities Purchase of shares of subsidiaries and associates

Net increase in short-term loans receivable included in other current assets Long-term loans receivable made

Collection of long-term loans receivable Other, net

Net cash used in investing activities

Financing activities:

Net increase (decrease)in short-term bank loans

Proceeds from long-term loans

Repayment of long-term loans

Proceeds from issuance of bonds

Redemption of bonds with stock acquisition rights

Purchases of treasury share

Proceeds from sales of treasury share

Repayment of lease obligations

Cash dividends paid to shareholders of the Company

Dividends paid to non-controlling interests

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents as of January 1, 2020 and 2019 Cash and cash equivalents as of June 30, 2020 and 2019

￥

(9,308)

￥

9,917

6,732

6,172

135

5

697

(74)

156

234

(325)

1

28

9

(1)

(1)

(319)

(611)

753

928

10

36

205

43

(635)

173

11,200

(4,633)

(16,364)

(3,958)

(1,244)

(2,040)

1,404

913

1,060

1,662

(2,031)

(741)

(7,845)

8,038

314

610

(739)

(900)

(39)

(486)

(802)

(3,731)

(9,113)

3,529

(0)

(411)

230

1,430

(1,626)

(2,385)

(199)

(11)

32

11

(2,920)

(2,677)

86

24

(547)

(170)

7

4

－

(15)

(0)

(22)

(8)

(13)

9

9

(248)

(418)

(5,181)

(4,645)

35,176

(301)

2,500

－

(117)

(17)

－

19,910

－

(30,000)

(0)

(1)

0

0

(3,491)

(3116)

(3,289)

(2,270)

(0)

－

30,777

(15,795)

(1,095)

(961)

15,386

(17,872)

37,985

65,877

￥

53,371

￥

48,004

12

（4）Notes for Consolidated Financial Statements (Consolidated Balance Sheet)

The Company has an overdraft agreement with the bank to finance working capital efficiently. The balance of unused loan commitments as of June 30, 2020 under this agreement is as follows.

Millions of yen

As of June 30, 2020

As of June 30, 2019

Overdraft maximum amount

¥194,500

¥188,500

Balance of used loans

40,000

4,400

Unused balance

¥154,500

¥184,100

(Consolidated Income Statement)

*1 The material expenses in Selling, General and Administrative expenses are as follows:

The Company has received subsidy related to COVID-19 and deducted ¥348 million directly from selling, general and administrative expenses.

Millions of yen

2020

2019

(from January 1 to June 30, 2020)

(from January 1 to June 30, 2019)

Advertising

¥14,286

¥15,195

Commission fee

9,874

10,026

Provision for bad debt

839

7

Salaries and wages

17,415

19,936

Provision for bonus

298

343

Retirement benefit

521

510

Rent

4,556

6,460

Depreciation and amortization

5,953

6,048

*2 Extra retirement payments

This is a special severance payment associated with the rationalization of management of European subsidiaries.

*3 Loss on temporary closing of stores

We have been temporarily closing some own retail stores in Japan, North America, Europe, etc., due to requests of governments and local governments regarding the infection (COVID-19), and as a measure against the spread of infections. Fixed costs (personnel expenses, depreciation and amortization, etc.) of own retail stores incurred during the closure period are recorded in extraordinary losses as losses resulting from temporary store closures.

The Company has received subsidy related to COVID-19 and deducted ¥151 million directly from the extraordinary losses described above.

*4 Refund of income taxes

This is the amount of tax refunds recorded by U.S. subsidiaries based on the CARES Act established in the U.S.

(Segment Information)

1) Outline of Reportable Segments

Reportable segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed by the Executive Meeting of the Company to make decisions on the allocation of management resources and assess performance.

The Company is mainly engaged in business management activities and product development as the global headquarters.

The Group is primarily engaged in the manufacture and sales of sporting goods. ASICS Japan Corporation and other subsidiaries in Japan are responsible for Japan. ASICS America Corporation is responsible for North America; ASICS Europe B.V. for Europe, Middle East, and Africa; ASICS China Trading Co., Ltd. for Greater China; ASICS Oceania PTY., Ltd. for Oceania; and ASICS Asia PTE., Ltd. for Southeast and South Asia.

2) Net Sales and Segment Income/Loss of Reportable Segment

Millions of yen

North

SouthEast and

Japanese

American

European

Greater

Oceanian

South Asian

Other

2020 (from January 1 to June 30, 2020)

region

region

region

China region

region

region

regions

Total

Adjustments

Consolidated

Net sales:

Sales to customers

¥37,753

¥28,397

¥37,083

¥18,525

¥8,587

¥3,663

¥11,879

¥145,890

¥1,007

¥146,897

Intersegment

9,251

16

10

-

-

-

113

9,392

(9,392)

-

Total sales

47,004

28,414

37,094

18,525

8,587

3,663

11,993

155,282

(8,385)

146,897

Segment income (loss)

¥(1,509)

¥(2,134)

¥737

¥2,113

¥1,087

¥(71)

¥(317)

¥(74)

¥(3,798)

¥(3,873)

Millions of yen

North

SouthEast and

Japanese

American

European

Greater

Oceanian

South Asian

Other

2019 (from January 1 to June 30, 2019)

region

region

region

China region

region

region

regions

Total

Adjustments

Consolidated

Net sales:

Sales to customers

¥52,000

¥37,185

¥46,631

¥18,650

¥8,468

¥5,552

¥18,165

¥186,653

¥550

¥187,204

Intersegment

9,812

1,785

20

-

-

0

233

11,852

(11,852)

-

Total sales

61,812

38,971

46,651

18,650

8,468

5,552

18,398

198,505

(11,301)

187,204

Segment income (loss)

¥3,362

¥(2,113)

¥1,046

¥3,165

¥1,037

¥551

¥779

¥7,830

¥758

¥8,589

3．Supplemental Information

（1）Net Sales per Regions

Millions of yen

North

Japanese

American

European

Greater

Other

2020 (from January 1 to June 30, 2020)

region

region

region

China region

regions

Consolidated

Net sales

¥37,838

¥29,263

¥38,444

¥18,607

¥22,744

¥146,897

Millions of yen

North

Japanese

American

European

Greater

Other

2019 (from January 1 to June 30, 2019)

region

region

region

China region

regions

Consolidated

Net sales

¥52,049

¥37,635

¥47,406

¥18,870

¥31,241

¥187,204

（2）Foreign Currency Exchange Rates

USD

EUR

RMB

AUD

SGD

2nd quarter ended June 30, 2020

¥108.27

¥119.78

¥15.38

¥71.94

¥77.75

2nd quarter ended June 30, 2019

¥109.95

¥124.44

¥16.21

¥77.75

¥80.90

Increase or (Decrease)

¥(1.68)

¥(4.66)

¥(0.83)

¥(5.81)

¥(3.15)

Ratio (%)

(1.5)

(3.7)

(5.1)

(7.5)

(3.9)

（3）Net Sales and Segment Income Ratio

North

SouthEast and

Japanese

American

European

Greater

Oceanian

South Asian

Other

region

region

region

China region

region

region

regions

Net Sales

(Local Currency)

-

(25.7)

(17.4)

+3.8

+9.6

(31.2)

(25.7)

Vs 2nd quarter ended June 30, 2019

(%)

（Yen)

(24.0)

(27.1)

(20.5)

(0.7)

+1.4

(34.0)

(34.8)

Segment income

(Local Currency)

-

-

(26.8)

(29.3)

+13.2

-

-

Vs 2nd quarter ended June 30, 2019

(%)

（Yen)

-

-

(29.5)

(32.6)

+4.8

-

-

Segment Income Ratio (%)

(3.2)

(7.5)

2.0

11.5

12.7

(2.0)

(2.6)

13

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Asics Corporation published this content on 13 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2020 06:02:16 UTC