ASKUL : Excerpt from Summary of Consolidated Financial Results for the Three Months Ended August 20, 2020

Disclaimer

This is an English translation of the captioned release excerpt. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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Excerpt from Summary of Consolidated Financial Results

for the Three Months Ended August 20, 2020

[Japanese GAAP]*

											September 16, 2020
Company name: ASKUL Corporation
Stock exchange listing: Tokyo
Code number: 2678
URL: https://www.askul.co.jp/kaisya/ir/
Representative: Akira Yoshioka					President and chief executive officer
Contact: Tsuguhiro Tamai					Executive officer and chief financial officer
Phone: [phone]
Scheduled date of filing quarterly securities report: September 29, 2020
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes
						(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Three Months Ended August 20, 2020 (May 21, 2020 to August 20, 2020)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
Three months ended		Million yen		%	Million yen	%		Million yen	%		Million yen	%
August 20, 2020		100,180		2.3	2,990	102.1		2,987	105.1		1,502	65.0
August 20, 2019		97,891		4.2	1,479	-		1,456	-		910	-

(Note) Comprehensive income:	Three months ended August 20, 2020:
	Three months ended August 20, 2019:

¥	1,442 million	[	52.6%]
¥	945 million	[	-%]

	Basic earnings		Diluted earnings per
	per share		share
Three months ended		Yen	Yen
August 20, 2020		29.43	29.31
August 20, 2019		17.85	17.85

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
August 20, 2020	168,587		53,341	31.5
May 20, 2020	174,114		52,825	30.1
(Reference) Equity: As of	August 20, 2020:	¥	53,045 million
As of	May 20, 2020:	¥	52,434 million

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Disclaimer

This is an English translation of the captioned release excerpt. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended May 20, 2020

-

19.00

-

19.00

38.00

Fiscal year ending May 20, 2021

-

Fiscal year ending May 20, 2021

19.00

-

19.00

38.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

(Note) Breakdown of the 1st quarter dividend for the fiscal year ending May 20, 2021 :

Commemorative dividend

-

yen

Special dividend

-

yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 20, 2021(May 21, 2020 to May 20, 2021)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable

Basic earnings per

to owners of parent

share

Million

Million

Million

Million

yen

%

yen

%

yen

%

yen

%

Yen

Full year

406,300

1.5

9,200

4.3

9,000

4.0

5,000

(11.5)

97.94

(Note) Revision to the financial results forecast announced most recently:

Yes

• Notes:

1. Changes in significant subsidiaries during the three months ended August 20, 2020

(changes in specified subsidiaries resulting in changes in scope of consolidation):	No
New	-	(Company name:		)
Exclusion:	-	(Company name:		)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

August 20, 2020:	55,259,400	shares
May 20, 2020:	55,259,400	shares
2) Total number of treasury shares at the end of the period:
August 20, 2020:	4,192,022	shares
May 20, 2020:	4,221,622	shares

3) Average number of shares during the period:
Three months ended August 20, 2020:	51,051,906	shares
Three months ended August 20, 2019:	51,023,762	shares

• This excerpt from the Summary of Consolidated Financial Results is not subject to quarterly review.
• Notes for using forecasted information and others

Earnings forecasts and other forward-looking statements contained in this document are based on the information ASKUL has obtained to date and on certain assumptions it considers reasonable. As such, these forecasts and statements are not intended as a commitment by the Company to achieve them. Note also that actual results and other future events may differ materially from these forecasts and statements due to a variety of factors.

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Disclaimer

This is an English translation of the captioned release excerpt. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Million yen)
				As of May 20,2020	As of August 20,2020
Assets
	Current assets
		Cash and deposits	63,260	54,208
		Notes and accounts receivable - trade	38,701	42,711
		Merchandise and finished goods	16,582	16,900
		Raw materials and supplies	257	239
		Costs on construction contracts in progress	63	98
		Accounts receivable - other	10,340	10,236
		Other	1,277	1,442
		Allowance for doubtful accounts	(24)	(30)
		Total current assets	130,458	125,807
	Non-current assets
		Property, plant and equipment
		Buildings and structures	8,329	8,283
			Accumulated depreciation	(3,162)	(3,236)
			Buildings and structures, net	5,166	5,046
		Land	137	137
		Leased assets	19,408	19,429
			Accumulated depreciation	(6,405)	(6,877)
			Leased assets, net	13,003	12,551
		Other	10,065	10,043
			Accumulated depreciation	(6,961)	(7,070)
			Other, net	3,104	2,973
		Construction in progress	461	1,065
		Total property, plant and equipment	21,873	21,774
		Intangible assets
		Software	7,285	7,255
		Software in progress	1,116	1,318
		Goodwill	2,165	1,888
		Other	6	5
		Total intangible assets	10,574	10,468
		Investments and other assets
		Investment securities	808	433
		Deferred tax assets	3,873	3,539
		Other	6,647	7,696
		Allowance for doubtful accounts	(121)	(1,131)
		Total investments and other assets	11,208	10,537
		Total non-current assets	43,655	42,780
	Total assets	174,114	168,587

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Disclaimer

This is an English translation of the captioned release excerpt. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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				(Million yen)
			As of May 20,2020	As of August 20,2020
Liabilities
	Current liabilities
	Notes and accounts payable - trade		45,549	45,013
	Electronically recorded obligations - operating	21,733	18,882
	Short-term borrowings		430	380
	Current portion of long-term borrowings	1,767	3,517
	Accounts payable - other		10,281	10,433
	Income taxes payable	1,972	303
	Accrued consumption taxes		1,140	812
	Provisions	780	712
	Other		3,718	3,748
	Total current liabilities	87,374	83,803
	Non-current liabilities
	Long-term borrowings	13,679	11,547
	Lease obligations		11,879	11,424
	Retirement benefit liability	3,716	3,812
	Asset retirement obligations		2,438	2,441
	Other	2,200	2,217
	Total non-current liabilities		33,914	31,443
	Total liabilities	121,289	115,246
Net assets
	Shareholders' equity
	Share capital		21,189	21,189
	Capital surplus	24,220	24,183
	Retained earnings		23,769	24,296
	Treasury shares	(16,718)	(16,601)
	Total shareholders' equity		52,461	53,067
	Accumulated other comprehensive income
	Remeasurements of defined benefit plans		(26)	(22)
	Total accumulated other comprehensive income	(26)	(22)
	Share acquisition rights		7	5
	Non-controlling interests	382	290
	Total net assets		52,825	53,341
Total liabilities and net assets	174,114	168,587

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Disclaimer

This is an English translation of the captioned release excerpt. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the three months)

		(Million yen)
	For the three months	For the three months
	ended August 20,2019	ended August 20,2020
Net sales	97,891	100,180
Cost of sales	74,792	75,323
Gross profit	23,098	24,856
Reversal of provision for sales returns	26	26
Provision for sales returns	26	31
Gross profit - net	23,098	24,851
Selling, general and administrative expenses	21,619	21,861
Operating profit	1,479	2,990
Non-operating income
Interest income	6	8
Subsidy income	-	37
Rental income	112	47
Other	60	13
Total non-operating income	179	106
Non-operating expenses
Interest expenses	64	58
Rental expenses	109	44
Other	28	8
Total non-operating expenses	203	110
Ordinary profit	1,456	2,987
Extraordinary income
Gain on sales of non-current assets	-	1
Total extraordinary income	-	1
Extraordinary losses
Loss on sales of shares of subsidiaries	-	24
Loss on valuation of investment securities	-	48
Loss on sales of non-current assets	-	0
Loss on retirement of non-current assets	2	0
Provision of allowance for doubtful accounts	-	1,000
Total extraordinary losses	2	1,074
Profit before income taxes	1,453	1,914
Income taxes - current	300	145
Income taxes - deferred	225	329
Total income taxes	526	475
Profit	927	1,439
Profit (loss) attributable to non-controlling interests	16	(63)
Profit attributable to owners of parent	910	1,502

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Disclaimer

This is an English translation of the captioned release excerpt. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

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Quarterly Consolidated Statements of Comprehensive Income (For the three months)

			(Million yen)
	For the three months		For the three months
	ended August 20,2019		ended August 20,2020
Profit		927	1,439
Other comprehensive income

Deferred gains or losses on hedges

Foreign currency translation adjustment

Remeasurements of defined benefit plans, net of tax

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

0	-
(1)	-
19	3
18	3
945	1,442
929	1,506
16	(63)

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