ASKUL Corporation

2678

JP3119920001

Internet Services

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Apr. 01	Morgan Stanley Downgrades Askul to Equalweight From Overweight, Adjusts Price Target to 2,100 Yen From 2,200 Yen	MT
Mar. 28	Askul Corporation Announces Non-Consolidated Net Sales for Monthly Operating Results for the Month Ended March 20, 2024	CI

ASKUL : 【Delayed】Summary of Consolidated Financial Results for the Year Ended May 20, 2020

July 27, 2020 at 12:35 am EDT

Disclaimer

This is an English translation of the captioned release. 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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Summary of Consolidated Financial Results

for the Year Ended May 20, 2020

[Japanese GAAP]

								July 10, 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: 03-4330-5130
Scheduled date of Annual General Meeting of Shareholders: August 13, 2020
Scheduled date of commencing dividend payments: August 14, 2020
Scheduled date of filing annual securities report: August 7, 2020
Availability of supplementary briefing material on annual financial results: Yes
Schedule of annual financial results briefing session: Yes
			(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Fiscal Year Ended May 20, 2020 (May 21, 2019 to May 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

Fiscal year ended	Million yen	%	Million yen	%		Million yen	%	Million yen	%
May 20, 2020	400,376	3.3	8,821	95.1		8,656	95.9	5,652	-
May 20, 2019	387,470	7.5	4,520	7.8		4,418	12.1	434	(90.7)

(Note) Comprehensive income: Fiscal year ended May 20, 2020: Fiscal year ended May 20, 2019:

¥	5,720	million	[	- %]
¥	477	million	[	(89.9) %]

	Basic earnings	Diluted earnings		Rate of return on	Ordinary profit to		Operating profit
	per share		per share		equity	total assets ratio		to net sales ratio

Fiscal year ended	Yen		Yen		%		%		%
May 20, 2020	110.78		110.29			11.2		5.0		2.2
May 20, 2019	8.52		8.51			0.9		2.6		1.2
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended May 20, 2020:	¥		- million
				Fiscal year ended May 20, 2019:	¥		- million
(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share

As of	Million yen		Million yen		%			Yen
May 20, 2020	174,114		52,825		30.1		1,027.37
May 20, 2019	169,112		48,631		28.6		948.44
(Reference) Equity: As of	May 20, 2020:	¥		52,434 million
As of	May 20, 2019:	¥		48,392 million
(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from		Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
			of period

Fiscal year ended	Million yen		Million yen		Million yen			Million yen
May 20, 2020	16,609		(6,055)		(4,761)		63,260
May 20, 2019	6,215		(5,962)		(4,950)		57,469

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2. Dividends

		Annual dividends				Payout	Dividends
				Total	to net
							ratio
	1st	2nd	3rd		Year-end	Total	dividends	assets
		(consolidated)
	quarter-end	quarter-end	quarter-end			(consolidated)

Fiscal year ended	Yen	Yen	Yen		Yen	Yen	Million yen	%	%
May 20, 2019	-	18.00	-		18.00	36.00	1,836	422.7	3.8
May 20, 2020	-	19.00	-		19.00	38.00	1,939	34.3	3.8

Fiscal year ending
May 20, 2021	-	19.00	-		19.00	38.00		43.1

(Forecast)

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.)

								Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
								parent

	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	403,000		0.7	7,200	(18.4)	7,000	(19.1)	4,500	(20.4)	88.17

* Notes:

Changes in significant subsidiaries during the period under review
(changes in specified subsidiaries resulting in changes in scope of consolidation): No
Changes in accounting policies, changes in accounting estimates and retrospective restatement
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: Yes
4. Retrospective restatement: No
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury shares):

May 20, 2020:	55,259,400	shares
May 20, 2019:	55,259,400	shares

2) Total number of treasury shares at the end of the period:

May 20, 2020:	4,221,622	shares
May 20, 2019:	4,235,634	shares
3) Average number of shares during the period:
Fiscal Year ended May 20, 2020:	51,029,445	shares
Fiscal Year ended May 20, 2019:	51,009,431	shares

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(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended May 20, 2020 (May 21, 2019 to May 20, 2020)
(1) Non-consolidated Operating Results			(% indicates changes from the previous corresponding period.)

	Net sales			Operating profit		Ordinary profit	Net income

Fiscal year ended	Million yen		%		Million yen		%		Million yen	%	Million yen	%
May 20, 2020	349,105		2.5		7,181		70.9	7,480	59.3	4,919	901.8
May 20, 2019	340,615		6.6		4,202		42.0	4,696	48.4	491	(86.9)

	Basic earnings	Diluted earnings
	per share			per share

Fiscal year ended			Yen			Yen
May 20, 2020			96.40			96.36
May 20, 2019			9.63			9.62
(2) Non-consolidated Financial Position

	Total assets		Net assets	Capital adequacy ratio	Net assets per share

As of	Million yen			Million yen			%		Yen
May 20, 2020	158,479			52,101			32.9	1,020.55
May 20, 2019	154,506			49,026			31.7		960.53
(Reference) Equity: As of	May 20, 2020:			¥		52,086 million
As of	May 20, 2019:			¥		49,009 million

This Summary of Consolidated Financial Results is not subject to audit.
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.

For the assumptions on which earnings forecasts are based and notes and information on the use of earnings forecasts, see "1. Overview of Business Results, etc. (4) Future Outlook" on Page 8 of Attached Materials.

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Table of Contents for Attached Materials

1.	Overview of Business Results, etc. ..................................................................................................................................	5
(1)	Overview of Business Results for the Fiscal Year Under Review.................................................................................	5
(2)	Overview of Financial Condition for the Fiscal Year Under Review..............................................................................	8
(3)	Overview of Cash Flows for the Fiscal Year Under Review .........................................................................................	7
(4)	Future Outlook .............................................................................................................................................................	9
2.	Basic Thinking on the Selection of Accounting Standards................................................................................................	9
3.	Consolidated Financial Statements ................................................................................................................................	12
(1)	Consolidated Balance Sheets ....................................................................................................................................	12
(2)	Consolidated Statements of Income and Comprehensive Income.............................................................................	14
(3)	Consolidated Statements of Changes in Net Assets ..................................................................................................	16
(4)	Consolidated Statements of Cash Flows ...................................................................................................................	20
(5)	Notes to Consolidated Financial Statements .............................................................................................................	22
		(Notes to Going Concern Assumptions) .......................................................................................................................	22
		(Changes in Presentation)............................................................................................................................................	22
		(Changes in Accounting Estimates) .............................................................................................................................	22
		(Supplementary Information)........................................................................................................................................	22
		(Segment Information, etc.)..........................................................................................................................................	24
		(Per Share Information)................................................................................................................................................	27
		(Significant Subsequent Events) ..................................................................................................................................	27
4.	Other ..............................................................................................................................................................................	28
(1)	Changes in Officers....................................................................................................................................................	28
(2)	Details of Selling, General and Administrative Expenses (Consolidated)...................................................................	28

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1. Overview of Business Results, etc.

Overview of Business Results for the Fiscal Year Under Review

During the fiscal year under review (May 21, 2019 to May 20, 2020), Japan's economy had remained on a moderate recovery path with continued improvement mainly in the employment environment. However, the outlook for the economy has become uncertain due to continued trade frictions between the United States and China and political instability overseas, as well as the spread of the novel coronavirus since January 2020.

In the e-commerce market, in which the Group operates, demand is on an upward trend mainly in the B-to-C business amid new lifestyles being sought due to the novel coronavirus pandemic. However, delivery charges remain high due to a shortage of delivery drivers and ongoing competition concerning services in the industry, which has had a considerable influence in the business of e-commerce companies.

Under these circumstances, in the B-to-B business of the mainstay e-commerce business, sales declined year-on- year in the fourth quarter of the fiscal year under review mainly because corporate activities stagnated in the face of the spread of the novel coronavirus, but both sales and profit increased on a full year basis primarily due to the expanded number of users.

The B-to-C business worked to improve the profit of LOHACO as its top priority. The revision of the minimum order amounts to qualify for no basic delivery fees for purchases in the LOHACO marketplace (hereinafter "free shipping charge") in January 2019, and the launch of the one-box eco service (note 1), etc., in July 2019, have led to an increase in the number of items purchased by customers and a notable decrease in the ratio of delivery charges to net sales. As a result, progress was made in improvement of the business performance as planned.

As a consequence, the ASKUL Group posted net sales of 400,376 million yen, a 3.3% increase year-on-year, operating profit of 8,821 million yen, a 95.1% increase year-on-year owing to the improvement of profit in the LOHACO business, and ordinary profit of 8,656 million yen, a 95.9% increase year-on-year. Profit attributable to owners of parent came to 5,652 million yen (Profit attributable to owners of parent of 434 million yen was posted for the preceding fiscal year).

Operating results by segment are outlined below. <> business>

In the B-to-B business, the mainstay business of the Group, e-commerce strategies toward further growth have been steadily implemented. Specifically, the Group implemented measures to have its website ranked high when customers with no purchase history with the Group search for goods on search engines (search engine optimization, or SEO), and to strengthen web advertising, thereby succeeding in increasing the use of the Group's services by new customers. In addition, the Group took measures such as advancing its website's search function with the application of big data and artificial intelligence (AI) and adding an image search function to allow users to search for goods they want even if they do not know their names. Other measures were also pushed forward with to increase the number of items purchased and the average purchase per customer by customers who have used the Group's services.

In terms of product categories, sales of living supplies, including daily consumable products and disposable paper, which are used frequently in stores, etc., beverages consumed in offices, products used in medical and nursing care facilities, a focus area, as well as MRO supplies (Note 2) that include long-tail products expanded steadily. In terms of services, we have steadily expanded the range of products covered by our regular delivery service, starting with sanitary and nursing care products in August 2019, as well as packaging materials and beverages.

At the request of the Ministry of Economy, Trade and Industry (METI) and the Ministry of Health, Labour and Welfare (MHLW) as a response to the coronavirus pandemic, in order to fulfill the Group's responsibility as a company that supports our customers' lifelines, the Group provided services such as priority delivery of hand sanitizers to medical institutions, nursing care facilities, etc. Based on these experiences and achievements, the Group will continue to fulfill its mission and responsibilities as an infrastructure company.

As a result, full-year net sales in the B-to-B business increased 13,257 million yen to 329,072 million yen, a 4.2%

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increase year-on-year, as sales trended steadily up to the third quarter of the fiscal year under review although there were declines in sales in April and May due to stagnation in corporate activities resulting from the spread of the novel coronavirus during the fourth quarter of the fiscal year under review.

The B-to-C business made efforts to improve the profit of LOHACO as its top priority. As for profit improvement, the effects of structural reforms, such as the revision of the free shipping charge implemented in January 2019 and the one- box eco service launched in July 2019, are steadily showing up. Consequently, gross profit rose, and the ratio of delivery charges to net sales improved.

At the same time, in October 2019, LOHACO opened a new store in the PayPay Mall, which was launched by Yahoo Japan Corporation, with the aim of attracting new customers toward renewed growth in the following fiscal years, and sales through the PayPay Mall have been growing steadily. In parallel, the Group also worked to strengthen its lineup of unique value products that only LOHACO can offer.

Demand for e-commerce is growing more as self-restraint on outings is ongoing to prevent the spread of the novel coronavirus. As more orders are coming to LOHACO, the Group will establish a shipping system and focus on expanding sales in the following fiscal years.

As a result, sales in the LOHACO business stood at 48,620 million yen, a decrease of 2,774 million yen, or down 5.4% year-on-year. Net sales of the B-to-C business as a whole also decreased 1,944 million or 3.0% year-on-year to 63,334 million yen. As for profit, it improved as planned due to the success of various profit improvement measures and an increase in advertising and other fee income.

As a result, net sales of the E-commerce business, combining the two businesses above, stood at 392,406 million yen, an increase of 3.0% year-on-year. Gross profit-net came to 94,645 million yen, a 4.6% increase year-on-year, mainly due to a rise in sales of office amenities, MRO supplies and others, as well as other factors, including the expansion of the range of original products with high profitability and improvement in gross profit margin of the LOHACO business.

Selling, general and administrative expenses came to 85,457 million yen and the ratio of selling, general and administrative expenses to net sales declined 0.6 points year-on-year due to a fall in the ratio of delivery charges to net sales, as mentioned above, and a decrease in depreciation resulting from impairment of non-current assets of ASKUL Value Center Hidaka recorded in the preceding fiscal year. Consequently, operating income was 9,188 million yen, an 82.8% increase year-on-year.

Although there was an increase in sales from the asset management business for logistics facilities of Eco Properties Corporation, the Logistics business posted an operating loss as it assumed expenses, such as rent of a distribution center relating to the preparation period for contracted business of logistics operations.

Consequently, the Logistics business posted net sales of 7,197 million yen, a 29.5% increase year-on-year, and operating loss of 400 million yen for the fiscal year under review (operating loss of 517 million yen for the preceding fiscal year).

Net sales of Tsumagoimeisui Corporation were roughly at the same level as in the preceding fiscal year. Consequently, net sales of Other segment stood at 1,322 million yen, a 4.2% increase year-on-year, and operating

income amounted to 59 million yen, a 168.3% increase year-on-year.

Notes: 1. A service in which the number of items per purchase unit is reduced and lower prices are offered for applicable beverage products, such as bottled water and tea, with free shipping charges applicable to orders of beverages up to a total of 18 kg per case unit. Promoting purchases that use up the weight limit per case unit by bundling various beverage products will lead to a decrease in the ratio of delivery charges to net sales, while reducing the burden of delivering packages at the same time.

2. MRO is an acronym for Maintenance, Repair and Operations, and the term "MRO supplies" denotes indirect ―6―

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materials, including consumables and repair supplies for use in factories, construction sites, and other workplaces.

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(2) Overview of Financial Condition for the Fiscal Year Under Review

(Assets)

Total assets stood at 174,114 million yen at the end of the fiscal year under review, an increase of 5,002 million yen from the end of the preceding fiscal year. The primary factors behind the increase were increases of 5,791 million yen in cash and deposits, 1,606 million yen in accounts receivable-other, 816 million yen in merchandise and finished goods and 562 million yen in software. The main factors for the decrease were a 3,488 million yen decrease in notes and accounts receivable-trade and a 1,119 million yen decline in leased assets due to further depreciation.

(Liabilities)

Total liabilities stood at 121,289 million yen at the end of the fiscal year under review, an increase of 808 million yen from the end of the preceding fiscal year. The primary factors behind the increase were increases of 1,644 million yen in electronically recorded obligations-operating, 940 million yen in accounts payable-other and 872 million yen in income taxes payable. The main factors behind the decrease were decreases of 1,181 million yen in long-term lease obligations, 966 million yen in long-term borrowings, and 723 million yen in notes and accounts payable-trade.

(Net assets)

Net assets stood at 52,825 million yen at the end of the fiscal year under review, an increase of 4,193 million yen from the end of the preceding fiscal year. The primary factor behind the rise was an increase of 3,796 million yen in retained earnings mainly due to recording of profit attributable to owners of parent of 5,652 million yen despite dividend payments of 1,887 million yen.

Consequently, the capital adequacy ratio was 30.1% (28.6% at the end of the preceding fiscal year).

(3) Overview of Cash Flows for the Fiscal Year Under Review

Consolidated cash and cash equivalents (hereinafter "Funds") at the end of the fiscal year under review were 63,260 million yen, an increase of 5,791 million yen from the end of the preceding fiscal year. The status of cash flows from operating, investing, and financing activities for the fiscal year under review and the underlying factors are explained below.

(Cash flows from operating activities)

Net Funds provided by operating activities were 16,609 million yen, an increase of 10,394 million yen from the preceding fiscal year. The main factors contributing to the increase in the Funds were profit before income taxes of 8,460 million yen and the total of 5,900 million yen for depreciation and amortization of software and goodwill, and a decrease of 3,579 million yen in trade receivables.

(Cash flows from investing activities)

Net Funds used in investing activities were 6,055 million yen, a decrease of 93 million yen from the preceding fiscal year. The main factors causing a decrease in Funds were 3,260 million yen paid for the purchase of software and 1,827 million yen spent to purchase property, plant and equipment.

(Cash flows from financing activities)

Net Funds used in financing activities were 4,761 million yen, an increase of 188 million yen from the preceding fiscal year. The items leading to a decrease in Funds were repayments of long-term borrowings of 2,215 million yen, cash dividends paid of 1,887 million yen and repayments of lease obligations of 1,704 million yen.

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The table below shows the trends of key cash flow indicators.

	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year
	Ended May	Ended May	Ended May	Ended May	Ended May
	2016	2017	2018	2019	2020
Capital adequacy ratio (%)	36.6	29.6	28.3	28.6	30.1

Capital adequacy ratio at	152.8	110.2	93.0	89.1	97.0
market value (%)


Cash flow to interest-bearing	1.1	1.4	3.4	5.2	1.8
liabilities ratio (years)


Interest coverage ratio (times)	139.6	145.4	64.4	23.9	66.6

(Note) Capital adequacy ratio at market value = Market capitalization/Total assets
Cash flow to interest-bearing liabilities ratio = Interest-bearing liabilities/Cash flows
Interest coverage ratio = Cash flows/Interest payments

- Market capitalization is calculated by multiplying the closing share price at the end of the period by the number of issued and outstanding shares (net of treasury stock) at the end of the period.
- The amount of cash flows from operating activities is used as the amount of cash flows.
- Interest-bearingliabilities refer to all the liabilities bearing interest and reported on the consolidated balance sheet.
- The amount of interest payments used to calculate the interest coverage ratio is the amount of interest expenses presented in the consolidated statement of income.
Future Outlook

The Group will focus on the following three themes.

The evolution of websites that are supported by all working people, development of goods and expansion of long- tail products by tapping and making maximum use of data and technology (B-to-B business)

B-to-B business, in the ever-growinge-commerce market, will continue to evolve shopping websites into ones where customers can find the products they want quickly by pushing forward with DX (digital transformation) through making the maximum use of big data and taking full control of AI and other technologies. The Group, taking advantage of having one of Japan's largest B-to-B big data on customers bases, will focus on proposing optimum products to each customer (1-to-1 marketing) by perfecting products search functions and products recommendation functions. By focusing on cultivating new customers through SEO (a measure of having the company's website ranked high when customers search for products through search engines) and effective Internet advertising, which are unique to e-commerce, and by expanding its business in conjunction with measures to increase repeat purchases and shopping around, the Group will create a growth cycle of accumulating big data and accelerating 1-to-1 marketing. Regarding products, by expanding differentiated original products and long-tail products offered exclusively on the B-to-B market, services will evolve into ones that are differentiated from competitors and more convenient to customers, whereby the Group will work on further growth and enhancement of earning power.

(ii) Promotion of structural reforms and realization of secondary growth (B-to-C business)

The B-to-C business will focus on fundamental structural reforms in order to realize new secondary growth accompanied by improved profit. For its websites, the Group plans to utilize the business system infrastructure of Yahoo Japan Corporation. By doing so, the Group aims to significantly reduce fixed costs, such as business system costs and operating costs. Both the LOHACO Main Store and PayPay Mall Store will provide value to meet customer needs. As for deliveries, the Group will strive to rebuild new delivery services to meet customer needs, such as active use of front porch delivery (a service to deliver packages to a pre-designated place without face-to-face contact) and the utilization of existing delivery networks of the B-to-B business.

(iii) Aim to realize "ethical e-commerce"

Work styles in offices and the lifestyles of general consumers are changing significantly due to the spread of the novel coronavirus in addition to a review of social systems in the wake of major changes in the social structure such as climate change, the issue of realizing a plastic-free world, a declining population, an aging society with declining birthrates, and a further rise in health consciousness.

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The Group will continue to create new value in response to these environmental changes. Considering that the attitude of corporations toward the realization of a more sustainable society will be challenged in the future, the Group aims for "ethical e-commerce," which provides services that embrace environmental conservation and solutions to social issues. The Group will further promote ethical initiatives and accelerate its efforts to promote resource recycling, such as responsible procurement, expansion of environmentally-friendly products, response to climate change through participation in RE100 (Notes 1 and 3) and EV100 (Notes 2 and 3) and afforestation as a method to compensate for raw materials for copy paper.

Notes: 1. RE100 is an international business initiative participated in by companies that publicly aim to operate their business with 100% renewable energy. When ASKUL joined the RE100, it declared that it would achieve the following two goals.

- Interim goal: Increase the use of renewable energy at headquarters and distribution centers to 100% by 2025.
- Goal: Raise the group-wide renewable energy utilization ratio, including subsidiaries, to 100% by 2030.
EV100 is an international business initiative participated in by companies that publicly aim to replace all of their business-purpose vehicles with electric vehicles. An initiative that is intended to replace 100% of its delivery vehicles, owned and leased, used by ASKUL LOGIST, a group company that operates distribution centers and handles deliveries, with EVs by 2030.
Both RE100 and EV100 are business initiatives organized by The Climate Group, a UK non-profit organization.

Although the Group will steadily implement the measures described above, it is difficult to predict the impact of the novel coronavirus pandemic on the year ending May 2021. Under such circumstances, the Group made its performance forecasts in the B-to-B business based on the following assumptions. (i) The assumptions do not include a second declaration of a state of emergency, and although the sales growth rate will gradually recover from now, the annual growth rate will not recover to the previous level. (ii) Gross profit margin is expected to decline partly due to deterioration in the macroeconomic environment. (iii) Whether or not there is an impact from the novel coronavirus, rises in labor costs and delivery costs, which were originally assumed, are factored in. On the other hand, the B-to-C business will implement current plans and carry out structural reforms steadily to turn profitable in the year ending May 2023. As a result, the present forecasts for operating performance for the fiscal year ending May 2021 are net sales of 403.0 billion yen, a 0.7% increase year-on-year, operating profit of 7.2 billion yen, a 18.4% decrease year-on- year, ordinary profit of

7.0 billion yen, a 19.1% decrease year-on-year, and profit attributable to owners of parent of 4.5 billion yen (a 20.4% decrease year-on-year).

Forecasts for the next fiscal year by business segment are as follows. <> business>

The B-to-B business forecasts net sales of 332.2 billion yen (up 1.0% year-on-year) due to a temporary slowdown in the growth of sales due to the spread of the novel coronavirus.

The B-to-C business forecasts net sales of 64.3 billion yen (up 1.5% year-on-year).

As a result, the E-commerce business forecasts net sales of 396.5 billion yen, a 1.0% increase year-on-year, and operating income of 8.1 billion yen, a 11.8% decrease year-on-year.

The Logistics business, Other, adjustments, etc., are projected to record net sales of 6.5 billion yen, a 18.4% decrease year-on-year, and operating loss of 900 million yen (an operating loss of 366 million yen in the preceding fiscal year).

2. Basic Thinking on the Selection of Accounting Standards

The ASKUL Group has adopted the Generally Accepted Accounting Principles for Japan (JGAAP) as accounting standards to secure comparability with domestic competitors in the industry.

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3.	Consolidated Financial Statements
(1)	Consolidated Balance Sheets
					(Million yen)
				As of May 20, 2019	As of May 20, 2020

Assets
	Current assets

		Cash and deposits		57,469	63,260
		Notes and accounts receivable - trade	42,189	38,701

		Merchandise and finished goods		15,766	16,582
		Raw materials and supplies	342	257

		Costs on construction contracts in progress		72	63
		Accounts receivable - other	8,733	10,340

		Other		1,230	1,277
		Allowance for doubtful accounts	(12)	(24)

		Total current assets		125,792	130,458
	Non-current assets

		Property, plant and equipment
		Buildings and structures	7,778	8,329

		Accumulated depreciation		(2,719)	(3,162)
		Buildings and structures, net	5,058	5,166

		Machinery, equipment and vehicles		5,720	6,277
		Accumulated depreciation	(3,587)	(4,021)

		Machinery, equipment and vehicles, net		2,133	2,255
		Land	136	137

		Leased assets		18,714	19,408
		Accumulated depreciation	(4,591)	(6,405)

		Leased assets, net		14,122	13,003
		Other		3,728	3,788

		Accumulated depreciation		(2,805)	(2,939)
		Other, net	922	848

		Construction in progress		50	461
		Total property, plant and equipment	22,424	21,873

		Intangible assets
		Software	6,722	7,285

		Software in progress		1,221	1,116
		Goodwill	1,889	2,165

		Other		13	6
		Total intangible assets	9,847	10,574

		Investments and other assets
		Investment securities	606	808

		Long-term prepaid expenses		195	156
		Guarantee deposits	6,257	6,344

		Deferred tax assets		3,967	3,873
		Other	111	147

		Allowance for doubtful accounts		(91)	(121)
		Total investments and other assets	11,047	11,208

		Total non-current assets		43,319	43,655
	Total assets		169,112	174,114

				―12―

Disclaimer

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				(Million yen)
			As of May 20, 2019	As of May 20, 2020

Liabilities
	Current liabilities

		Notes and accounts payable - trade	46,272	45,549
		Electronically recorded obligations - operating	20,088	21,733

		Short-term borrowings	380	430
		Current portion of long-term borrowings	2,184	1,767

		Lease obligations	1,829	1,946
		Accounts payable - other	9,340	10,281

		Income taxes payable	1,100	1,972
		Accrued consumption taxes	1,074	1,140

		Provision for bonuses	207	204
		Provision for sales promotion expenses	546	549

		Provision for sales returns	26	26
		Other	1,538	1,771

		Total current liabilities	84,590	87,374
	Non-current liabilities

		Long-term borrowings	14,646	13,679
		Lease obligations	13,060	11,879

		Retirement benefit liability	3,477	3,716
		Asset retirement obligations	2,346	2,438

		Other	2,358	2,200
		Total non-current liabilities	35,889	33,914

	Total liabilities	120,480	121,289
Net assets

	Shareholders' equity
		Share capital	21,189	21,189

		Capital surplus	24,061	24,220
		Retained earnings	19,972	23,769

		Treasury shares	(16,788)	(16,718)
		Total shareholders' equity	48,435	52,461

	Accumulated other comprehensive income
		Deferred gains or losses on hedges	(1)	-

		Foreign currency translation adjustment	28	-
		Remeasurements of defined benefit plans	(69)	(26)

		Total accumulated other comprehensive	(42)	(26)
		income

	Share acquisition rights	18	7

	Non-controlling interests	220	382
	Total net assets	48,631	52,825

Total liabilities and net assets	169,112	174,114

―13―

Disclaimer

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(2) Consolidated Statements of Income and Comprehensive Income

Consolidated Statements of Income

				(Million yen)
			For the fiscal year	For the fiscal year
			ended May 20, 2019	ended May 20, 2020

Net sales	387,470	400,376
Cost of sales	295,877	304,692

Gross profit	91,593	95,683
Reversal of provision for sales returns	39	26

Provision for sales returns	26	26
Gross profit - net	91,606	95,683

Selling, general and administrative expenses	87,085	86,862
Operating profit	4,520	8,821

Non-operating income
	Interest income	28	28

	Rental income		183	260
	Other	112	152

	Total non-operating income		324	440
Non-operating expenses

	Interest expenses		260	249
	Rental expenses	137	262

	Loss on transfer of receivables		14	11
	Commission expenses	2	3

	Other		11	79
	Total non-operating expenses	426	606

Ordinary profit	4,418	8,656
Extraordinary income

	Insurance income		6	-
	Gain on sales of non-current assets	0	-

	Gain on donation of non-current assets		30	-
	Gain on reversal of share acquisition rights	-	2

	Total extraordinary income		36	2
Extraordinary losses

	Impairment loss		3,123	44
	Loss on retirement of non-current assets	82	122

	Loss on retirement of treasury subscription rights		55	29
	to shares

	Other	19	2

	Total extraordinary losses		3,281	197
Profit before income taxes		1,173	8,460

Income taxes - current	1,820	2,676
Income taxes - deferred	(1,142)	74

Total income taxes	677	2,750
Profit	496	5,709

Profit attributable to non-controlling interests	62	56
Profit attributable to owners of parent	434	5,652

―14―

Disclaimer

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Consolidated Statements of Comprehensive Income

			(Million yen)
	For the fiscal year		For the fiscal year
	ended May 20, 2019		ended May 20, 2020

Profit		496	5,709
Other comprehensive income

Deferred gains or losses on hedges

Foreign currency translation adjustment

Remeasurements of defined benefit plans, net of tax

0	1
3	(33)

(23)	43

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

(19)	11


477	5,720


414	5,668

62	52

―15―

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(3) Consolidated Statements of Changes in Net Assets

For the fiscal year ended May 20, 2019

(Million yen)

			Shareholders' equity

	Share capital	Capital surplus	Retained earnings		Treasury shares	Total shareholders'
		equity

Balance at beginning	21,189	23,605	21,380		(16,991)	49,183
of period

Changes during
period
Dividends of			(1,835)			(1,835)
surplus

Profit attributable to			434			434
owners of parent

Purchase of					(0)	(0)
treasury shares

Disposal of treasury		(43)			203	159
shares

Change in scope of			(6)			(6)
consolidation

Change in
ownership interest
of parent due to		500				500
transactions with

non-controlling
interests
Net changes in
items other than
shareholders' equity
Total changes during	-	456	(1,407)		203	(748)
period

Balance at end of	21,189	24,061	19,972		(16,788)	48,435
period


	Accumulated other comprehensive income

	Deferred gains or	Foreign currency	Remeasurements		Total accumulated
	translation	of defined benefit		other
	losses on hedges		comprehensive
	adjustment	plans
			income

Balance at beginning	(1)	25	(46)		(22)
of period

Changes during
period
Dividends of
surplus
Profit attributable to
owners of parent
Purchase of
treasury shares
Disposal of
treasury shares
Change in scope of
consolidation
Change in
ownership interest
of parent due to
transactions with
non-controlling
interests
Net changes in
items other than	0	2	(23)		(19)
shareholders'

equity
Total changes during	0	2	(23)		(19)
period

		―16―

Disclaimer

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	Accumulated other comprehensive income

	Deferred gains or	Foreign currency	Remeasurements	Total accumulated
	translation	of defined benefit	other
	losses on hedges	comprehensive
	adjustment	plans
		income

Balance at end of	(1)	28	(69)	(42)
period


	Share acquisition	Non-controlling	Total net assets
	rights	interests


Balance at beginning	19	163	49,344
of period

Changes during
period
Dividends of			(1,835)
surplus

Profit attributable to			434
owners of parent

Purchase of			(0)
treasury shares

Disposal of			159
treasury shares

Change in scope of			(6)
consolidation

Change in
ownership interest
of parent due to			500
transactions with

non-controlling
interests
Net changes in
items other than	(0)	56	36
shareholders'

equity
Total changes during	(0)	56	(712)
period

Balance at end of	18	220	48,631
period

―17―

Disclaimer

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For the fiscal year ended May 20, 2020

(Million yen)

		Shareholders' equity

	Share capital	Capital surplus	Retained earnings		Treasury shares	Total shareholders'
		equity

Balance at beginning	21,189	24,061	19,972		(16,788)	48,435
of period

Changes during
period
Dividends of			(1,887)			(1,887)
surplus

Profit attributable to			5,652			5,652
owners of parent

Purchase of					(0)	(0)
treasury shares

Disposal of treasury		(24)			70	45
shares

Change in scope of			31			31
consolidation

Change in
ownership interest
of parent due to		184				184
transactions with

non-controlling
interests
Net changes in
items other than
shareholders' equity
Total changes during	-	159	3,796		70	4,025
period

Balance at end of	21,189	24,220	23,769		(16,718)	52,461
period


	Accumulated other comprehensive income

	Deferred gains or	Foreign currency	Remeasurements		Total accumulated
	translation	of defined benefit		other
	losses on hedges		comprehensive
	adjustment	plans
			income

Balance at beginning	(1)	28	(69)		(42)
of period

Changes during
period
Dividends of
surplus
Profit attributable to
owners of parent
Purchase of
treasury shares
Disposal of treasury
shares
Change in scope of
consolidation
Change in
ownership interest
of parent due to
transactions with
non-controlling
interests
Net changes in
items other than	1	(28)	43		15
shareholders' equity
Total changes during	1	(28)	43		15
period

Balance at end of	-	-	(26)		(26)
period

		―18―

Disclaimer

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	Share acquisition	Non-controlling	Total net assets
	rights	interests


Balance at beginning	18	220	48,631
of period

Changes during
period
Dividends of			(1,887)
surplus

Profit attributable to			5,652
owners of parent

Purchase of			(0)
treasury shares

Disposal of treasury			45
shares

Change in scope of			31
consolidation

Change in
ownership interest
of parent due to			184
transactions with

non-controlling
interests
Net changes in
items other than	(10)	162	167
shareholders' equity
Total changes during	(10)	162	4,193
period

Balance at end of	7	382	52,825
period

―19―

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(4) Consolidated Statements of Cash Flows

				(Million yen)
			For the fiscal year	For the fiscal year
			ended May 20, 2019	ended May 20, 2020

Cash flows from operating activities
	Profit before income taxes	1,173	8,460

	Depreciation		3,723	3,139
	Amortization of software	1,899	2,401

	Amortization of long-term prepaid expenses		300	118
	Impairment loss	3,123	44

	Amortization of goodwill		810	359
	Loss on retirement of treasury subscription rights	55	29
	to shares

	Gain on reversal of share acquisition rights		-	(2)
	Increase (decrease) in allowance for doubtful	12	41
	accounts

	Increase (decrease) in provision for bonuses		(0)	(2)
	Increase (decrease) in provision for sales	(24)	3
	promotion expenses

	Increase (decrease) in provision for sales returns		(13)	-
	Increase (decrease) in retirement benefit liability	356	301

	Interest income		(28)	(28)
	Interest expenses	260	249

	Insurance income		(6)	-
	Loss on retirement of non-current assets	82	122

	Loss (gain) on sales of non-current assets		(0)	-
	Decrease (increase) in trade receivables	(1,128)	3,579

	Decrease (increase) in inventories		(1,730)	(721)
	Decrease (increase) in accounts receivable -		(701)	(1,606)
	other

	Increase (decrease) in trade payables		(2,177)	812
	Increase (decrease) in accounts payable - other	(702)	1,306

	Increase (decrease) in accrued consumption		743	52
	taxes

	Other, net	1,122	(92)

	Subtotal		7,151	18,568
	Interest and dividends received		28	28

	Interest paid		(260)	(249)
	Proceeds from insurance income	6	-

	Income taxes paid		(1,084)	(1,737)
	Income taxes refund	374	-

	Net cash provided by (used in) operating		6,215	16,609
	activities

―20―

Disclaimer

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			(Million yen)
		For the fiscal year	For the fiscal year
		ended May 20,2019	ended May 20,2020

Cash flows from investing activities
	Purchase of property, plant and equipment	(1,689)	(1,827)

	Proceeds from sales of property, plant and	8	-
	equipment

	Purchase of software	(3,754)	(3,260)

	Purchase of long-term prepaid expenses	(338)	(158)
	Payments of guarantee deposits	(154)	(108)

	Proceeds from refund of guarantee deposits	6	18
	Loan advances	(3)	(32)

	Collection of loans receivable	39	3
	Proceeds from redemption of securities	336	-

	Purchase of shares of subsidiaries resulting in	-	(538)
	change in scope of consolidation

	Purchase of investment securities	(391)	(215)

	Payments for asset retirement obligations	(0)	(7)
	Other, net	(18)	71

	Net cash provided by (used in) investing activities	(5,962)	(6,055)
Cash flows from financing activities

	Net increase (decrease) in short-term borrowings	(700)	-
	Proceeds from long-term borrowings	500	800

	Repayments of long-term borrowings	(1,795)	(2,215)
	Repayments of lease obligations	(1,647)	(1,704)

	Proceeds from disposal of treasury shares	34	45
	Proceeds from share issuance to non-controlling	500	300
	shareholders

	Dividends paid	(1,835)	(1,887)
	Dividends paid to non-controlling interests	(5)	(6)

	Purchase of treasury share acquisition rights	-	(92)
	Net cash provided by (used in) financing	(4,950)	(4,761)
	activities

Effect of exchange rate change on cash and cash	(0)	(0)
equivalents

Net increase (decrease) in cash and cash	(4,698)	5,792
equivalents

Cash and cash equivalents at beginning of period	62,177	57,469
Decrease in cash and cash equivalents resulting	(9)	(0)
from exclusion of subsidiaries from consolidation

Cash and cash equivalents at end of period	57,469	63,260

―21―

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(5) Notes to Consolidated Financial Statements

(Notes to Going Concern Assumptions) Not applicable.

(Changes in Presentation)

(Consolidated Statements of Income)

"Loss on retirement of treasury subscription rights to shares," which was included in "Other" of "Extraordinary losses" in the preceding fiscal year, has been set down independently from the current fiscal year because it exceeded 10/100 of the total amount of extraordinary losses. Certain reclassifications of the consolidated financial statements for the preceding fiscal year have been made to reflect this change in presentation.

As a result, 74 million yen previously presented as "Other" in "Extraordinary losses" in the consolidated statements of income for the preceding fiscal year was reclassified into 55 million yen for "Loss on retirement of treasury subscription rights to shares" and 19 million yen for "Other."

(Consolidated Statements of Cash Flows)

"Loss on retirement of treasury subscription rights to shares," which was included in "Increase (decrease) in accounts payable - other" of "Cash flows from operating activities" in the preceding fiscal year, has been set down independently from the current fiscal year to improve the clarity of presentation. Certain reclassifications of the consolidated financial statements for the preceding fiscal year have been made to reflect this change in presentation.

As a result, (647) million yen, presented in "Increase (decrease) in accounts payable - other" in the "Cash flows from operating activities" of the consolidated statements of cash flows for the preceding fiscal year was reclassified into 55 million yen in "Loss on retirement of treasury subscription rights to shares" and (702) million yen in "Increase (decrease) in accounts payable - other."

(Changes in Accounting Estimates) (Changes in useful lives)

During the fiscal year under review, the functions of some logistics centers were reviewed, and the useful lives of machinery and equipment, etc., whose useful lives became shorter, have been reduced, and such changes are applicable into the future.

The impact of such changes on operating income, ordinary profit, and profit before income taxes for the fiscal year under review is insignificant.

(Supplementary Information)

(Application of tax effect accounting related to the transition from the consolidated taxation system to the group tax sharing system)

Certain consolidated subsidiaries did not apply the provisions of Paragraph 44 of the "Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28 of February 16, 2018) to items for which the non- consolidated tax payment system was reviewed in accordance with the transition to the group tax sharing system and the transition to the group tax sharing system established in the "Act for Partial Revision of the Income Tax Act, etc." (Act No. 8 of 2020), based on the treatment in Paragraph 3 of the "Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System" (ASBJ PITF No. 39 of March 31, 2020). The deferred tax assets and liabilities are instead calculated according to the provisions of the pre-revision tax law.

(Accounting estimates of the impact of the spread of the novel coronavirus)

The Group makes accounting estimates for impairment of non-current assets and the recoverability of deferred tax assets on the assumption that the effects of the spread of the novel coronavirus will continue until the end of the following fiscal year. A prolongation or a worsening of the novel coronavirus pandemic that is beyond the scope of the foregoing, such as the re-issuance of a state of emergency, could have a material impact on the Group's

―22―

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financial position, results of business operations, and cash flows from the following fiscal year onward.

―23―

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(Segment Information, etc.) (Segment Information)

1 Overview of reportable segments

ASKUL's reportable segments are defined as components of the Group regarding which separate financial information is available that is evaluated regularly by the board of directors in deciding how to allocate management resources and in assessing performance.

The Group formulates comprehensive strategies for domestic and overseas markets to carry out its business operations. The E-commerce business derives revenue from the sale of OA&PC supplies, office supplies, office amenities, office furniture, food, alcoholic beverages, medical supplies, cosmetics, and other products. The Logistics business provides

logistics and small-cargo delivery services for enterprises and asset management for real estate.

2 Basis of measurement of net sales, income or loss, assets, liabilities, and other items by reportable segment Methods of accounting for reportable segments are generally the same as those adopted to prepare consolidated

financial statements. Inter-segment revenue and transfers are based on prevailing market prices.

3 Net sales, income or loss, assets, liabilities, and other items by reportable segment Fiscal Year Ended May 2019 (May 21, 2018 through May 20, 2019)

(Unit: Million yen)

	Reporting Segment				Amount
				reported on

				Other		Adjustments	the
	E-commerce	Logistics		Total	consolidated
	Subtotal	(Note 1)		(Note 2)	financial
	business	business
					statements

							(Note 3)
Net sales
Sales to external	381,093	5,558	386,651	819	387,470	-	387,470
customers

Intra-segment sales or	-	-	-	450	450	(450)	-
transfers

Total	381,093	5,558	386,651	1,269	387,920	(450)	387,470

Segment income (loss)	5,025	(517)	4,507	22	4,529	(9)	4,520

Segment assets	165,411	1,828	167,240	1,871	169,112	-	169,112

Other items
Depreciation	5,557	36	5,594	62	5,656	(34)	5,622
Amortization of goodwill	732	74	806	3	810	-	810
Increase in property,
plant and equipment	5,196	29	5,225	821	6,047	-	6,047
and intangible assets

Notes: 1. "Other" represents business segments that do not fall under the Reporting Segment and includes the manufacturing business.

The adjustment of minus 9 million yen to segment income represents the elimination of inter-segment transactions of minus 9 million yen.
Segment income is adjusted with operating profit reported on the consolidated statements of income.

―24―

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Fiscal Year Ended May 2020 (May 21, 2019 through May 20, 2020)

(Unit: Million yen)

	Reporting Segment					Amount
					reported on

				Other			Adjustments	the
	E-commerce	Logistics		Total		consolidated
	Subtotal	(Note 1)			(Note 2)	financial
	business	business
						statements

								(Note 3)
Net sales
Sales to external	392,406	7,197	399,603	773	400,376		-	400,376
customers

Intra-segment sales or	-	-	-	549	549		(549)	-
transfers

Total	392,406	7,197	399,603	1,322	400,926		(549)	400,376

Segment income (loss)	9,188	(400)	8,788	59	8,847		(26)	8,821

Segment assets	167,253	4,808	172,062	2,051	174,114		-	174,114

Other items
Depreciation	5,393	129	5,522	62	5,585		(44)	5,540
Amortization of goodwill	282	74	356	3	359		-	359
Increase in property,
plant and equipment	3,821	2,037	5,859	368	6,228		-	6,228
and intangible assets
Notes: 1. "Other" represents business segments that do not fall under the Reporting	Segment and	includes the
manufacturing business.

The adjustment of minus 26 million yen of segment income represents the elimination of inter-segment transactions of minus 26 million yen.
Segment income is adjusted with operating profit reported on the consolidated statements of income.

[Related Information]

Fiscal Year Ended May 2019 (May 21, 2018 through May 20, 2019)

1. Information by product or service

This information is not presented because similar information is disclosed in the segment information section above.

2. Information by geographical area

Net sales

Net sales to external customers located in Japan accounted for more than 90% of the net sales reported on the consolidated statement of income. Accordingly, this information is not presented.

(2) Property, plant and equipment

Property, plant and equipment located in Japan accounted for more than 90% of the property, plant and equipment reported on the consolidated balance sheet. Accordingly, this information is not presented.

3. Information by primary customer

No external customer accounted for 10% or more of the net sales reported on the consolidated statement of income. Accordingly, this information is not presented.

Fiscal Year Ended May 2020 (May 21, 2019 through May 20, 2020)

1. Information by product or service

This information is not presented because similar information is disclosed in the segment information section above.

2. Information by geographical area

Net sales

Net sales to external customers located in Japan accounted for more than 90% of the net sales reported on the consolidated statement of income. Accordingly, this information is not presented.

―25―

Disclaimer

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(2) Property, plant and equipment

3. Information by primary customer

No external customer accounted for 10% or more of the net sales reported on the consolidated statement of income. Accordingly, this information is not presented.

[Impairment loss on non-current assets by reportable segment] Fiscal Year Ended May 2019 (May 21, 2018 through May 20, 2019)

(Unit: Million yen)

		Reporting Segment	Other
				Total
	E-commerce	Logistics	Subtotal	(Note)

	business	business

Impairment loss	3,097	26	3,123	-	3,123

(Note) The amount stated in "Other" pertains to the manufacturing business.

Fiscal Year Ended May 2020 (May 21, 2019 through May 20, 2020)

(Unit: Million yen)

		Reporting Segment	Other
				Total
	E-commerce	Logistics	Subtotal	(Note)

	business	business

Impairment loss	33	10	44	-	44

(Note) The amount stated in "Other" pertains to the manufacturing business.
[Amortized amount and unamortized balance of goodwill by reportable segment]
Fiscal Year Ended May 2019 (May 21, 2018 through May 20, 2019)
					(Unit: Million yen)
		Reporting Segment	Other
				Total
	E-commerce	Logistics	Subtotal	(Note)

	business	business

Amount amortized	732	74	806	3	810
during the fiscal year

Unamortized balance at	1,444	265	1,709	179	1,889
the end of the fiscal year

(Note) The amount stated in "Other" pertains to the manufacturing business.
Fiscal Year Ended May 2020 (May 21, 2019 through May 20, 2020)
					(Unit: Million yen)
		Reporting Segment	Other
				Total
	E-commerce	Logistics	Subtotal	(Note)

	business	business

Amount amortized	282	74	356	3	359
during the fiscal year

Unamortized balance at	1,187	827	2,014	150	2,165
the end of the fiscal year

(Note) The amount stated in "Other" pertains to the manufacturing business.
[Gain on bargain purchase by reportable segment]
Fiscal Year Ended May 2019 (May 21, 2018 through May 20, 2019)
Not applicable.

Fiscal Year Ended May 2020 (May 21, 2019 through May 20, 2020)

Not applicable.

―26―

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(Per Share Information)

	Fiscal Year Ended May 2019	Fiscal Year Ended May 2020
	(May 21, 2018, through May	(May 21, 2019, through May
	20, 2019)		20, 2020)

Net assets per share	948.44	yen	1,027.37	yen

Basic earnings per share	8.52	yen	110.78	yen

Diluted earnings per share	8.51	yen	110.29	yen

(Note) Basic earnings per share and diluted earnings per share were calculated based on the figures below.

	Fiscal Year Ended May 2019	Fiscal Year Ended May 2020
	(May 21, 2018, through May	(May 21, 2019, through May
	20, 2019)	20, 2020)

Basic earnings per share

Profit attributable to owners of parent (million yen)	434	5,652

Profit not attributable to common shareholders	-	-
(million yen)


Profit attributable to owners of parent related to	434	5,652
common stock (million yen)

Average number of shares (thousand shares)	51,009	51,029


Diluted earnings per share

Adjustments to profit attributable to owners of	-	(22)
parent (million yen)


[Of which adjustment for dilutive shares of	[-]	[(22)]
consolidated subsidiaries (million yen)]


Increase in number of shares of common stock	23	21
(thousand shares)


[Of which share acquisition rights (thousand	[23]	[21]
shares)]


		December 13, 2013
		Share acquisition rights
		resolved by the Board of
		Directors Meeting
	December 13, 2013	Number of share acquisition
	rights: 1,732
	Share acquisition rights
	(173,200 shares of common
	resolved by the Board of
Outline of dilutive shares not included in calculation of	stock)
Directors Meeting
diluted earnings per share due to absence of dilutive
Number of share acquisition
effects	October 19, 2015
rights: 1,772
	Share acquisition rights
	(177,200 shares of common
	resolved by the Board of
	stock)
	Directors Meeting

		Number of share acquisition
		rights: 3,060
		(306,000 shares of common
		stock)
(Significant Subsequent Events)
Not applicable.
	―27―

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4. Other

Changes in Officers
1. Change in Representative Directors Not applicable.
2. Change in other Officers
  - Candidates for new Directors

Director	Tsuguhiro Tamai (Current Chief Financial Officer (CFO), Executive Officer, and
	Executive Officer of Corporate Unit)
Director (Part-time)	Tadahisa Imaizumi

- Candidates for new Audit & Supervisory Board Member
Audit & Supervisory Board Member (Outside and Part-time)	Yoshitaka Asaeda
- Retiring Audit & Supervisory Board Member
Audit & Supervisory Board Member (Outside and Part-time)	Takaharu Yasumoto

1. Planned date of assumption of office and retirement August 13, 2020
Details of Selling, General and Administrative Expenses (Consolidated)

	Fiscal Year Ended May 2019	Fiscal Year Ended May 2020
Item	(May 21, 2018, through May 20, 2019)	(May 21, 2019, through May 20, 2020)

	Amount	Ratio to Sales	Amount	Ratio to Sales	Year-on-Year
	(Million yen)	(%)	(Million yen)	(%)	Change (%)

Personnel expenses	20,242	5.2	20,721	5.2	102.4

Shipment expenses *1	23,912	6.2	23,062	5.8	96.4

Provision for sales	537	0.1	533	0.1	99.2
promotion expenses

Subcontract expenses	3,548	0.9	3,566	0.9	100.5

Business consignment	10,939	2.8	10,921	2.7	99.8
expenses

Rents	9,595	2.5	9,727	2.4	101.4

Provision of allowance for	24	0.0	69	0.0	281.7
doubtful accounts

Depreciation *2	3,590	0.9	3,017	0.8	84.1

Amortization of software *3	1,882	0.5	2,373	0.6	126.1

Other expenses	12,812	3.4	12,869	3.2	100.4

Total	87,085	22.5	86,862	21.7	99.7

*1 Delivery expenses for the fiscal year under review decreased from the preceding fiscal year. This was mainly due to the decline in the ratio of delivery charges to net sales resulting from the effects of customers shopping around following the revision of the free shipping charge and the launch of the one-box eco service.

*2 Depreciation for the fiscal year under review decreased from the preceding fiscal year. This was mainly due to the recording of impairment loss on non-current assets of ASKUL Value Center Hidaka at the end of the preceding fiscal year.

*3 Amortization of software for the fiscal year under review increased from the preceding fiscal year. This was mainly due to the launch of a new product database.

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ASKUL Corporation published this content on 27 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2020 04:35:07 UTC

Latest news about ASKUL Corporation

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Askul Corporation Announces Non-Consolidated Net Sales for Monthly Operating Results for the Month Ended March 20, 2024	Mar. 28	CI
Askul Initiates Up to 4.5 Billion Yen Buyback Program	Mar. 17	MT
Askul's Attributable Profit Soars 128% in Fiscal Nine Months on Extraordinary Income	Mar. 15	MT
ASKUL Corporation announces an Equity Buyback for 2,250,000 shares, representing 2.31% for ¥4,500 million.	Mar. 15	CI
ASKUL Corporation authorizes a Buyback Plan.	Mar. 14	CI
Askul Reports Growth in Sales, Led by B-to-B Business	Dec. 28	MT
ASKUL Corporation Announces Non-Consolidated Sales Results from November 21,2023 to December 20, 2023	Dec. 27	CI
Askul’s Attributable Profit up 3.5% in Fiscal H1 on Higher Sales	Dec. 15	MT
Askul Corporation Announces Dividend for the Second Quarter End of Fiscal Year Ending May 20,2024, Payable on January 22, 2024 ;Provides Dividend Guidance for the Fiscal Year Ending May 20, 2024	Dec. 15	CI
Askul Reports Growth in Non-Consolidated Net Sales in October, Led by B-to-B Business	23-10-31	MT
Askul Corporation Reports Non-Consolidated Sales Results for the Month of September of the Fiscal Year Ending October 2024	23-10-30	CI
ASKUL Corporation Reports Non-Consolidated Sales Results for the Month of September of the Fiscal Year Ending May 2024	23-09-28	CI
Askul Corp Attributable Profit Down 8.6% in Fiscal Q1	23-09-18	MT
ASKUL Corporation Provides Dividend Guidance for the Second Quarter End and Year End of Fiscal Year Ending May 20, 2024	23-09-15	CI
Askul Completes Payment for Disposal of Treasury Stock as Restricted Stock Remuneration	23-09-01	MT
Japanese Shares Close Higher as Banking, PI, and Shipbuilding Sectors Gain	23-09-01	MT
ASKUL Corporation Announces Non-Consolidated Net Sales for Monthly Operating Results for August of the Fiscal Year Ending May 2024	23-08-28	CI
Japanese Shares Decline as Precision Instruments, Shipbuilding, Transportation Equipment Sectors Weight on Market	23-08-09	MT
Askul Joining JPX-Nikkei Index 400	23-08-09	MT
ASKUL Disposes of Shares as Restricted Stock Compensation	23-08-07	MT
Askul Corporation Provides Dividend Guidance for the Fiscal Year Ending May 20, 2024	23-08-02	CI
Askul Corporation Announces Dividend for the Year End 2023, Payable August 7, 2023 and Provides Dividend Guidance for the Second Quarter 2024	23-08-02	CI
Askul Corporation Provides Consolidated Earnings Guidance for the Fiscal Year Ending May 20, 2024	23-08-02	CI
Askul Corporation Reports Non-Consolidated Sales Results for the Month of June of the Fiscal Year Ending May 2024	23-06-28	CI

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Company Profile

Askul Corp is a Japan-based company mainly engaged in the development of e-commerce business. The Company operates in two business segments. The E-Commerce segment is engaged in the sale of office automation (OA) and personal computer (PC) supplies, office supplies, office daily necessities, office furniture, groceries, alcoholic beverages, pharmaceuticals and cosmetics. The Logistics segment provides logistics and small freight transportation services for companies and real estate asset management business. The Company is also engaged in the manufacture and sale of water.

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Internet Services

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2024-05-16 - Final dividend

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OUTPERFORM

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2,405 JPY

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2,440 JPY

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+1.46%

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E-commerce & Auction Services

ASKUL Corporation

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2678

JP3119920001

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ASKUL : 【Delayed】Summary of Consolidated Financial Results for the Year Ended May 20, 2020

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