Bic Camera : Consolidated Financial Results for the Fiscal Year Ended August 31, 2023

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended August 31, 2023

(Based on Japanese GAAP)

October 11, 2023

Company name:

BIC CAMERA INC.

Stock exchange listing:

Tokyo

Stock code:

3048

URL https://www.biccamera.co.jp/ir/

Representative:

Representative Director and President

Toru Akiho

Inquiries:

Director and Managing Director

Toru Abe

TEL

03-3987-8785

Scheduled date of annual general meeting of shareholders:

November 22, 2023

Scheduled date to commence dividend payments:

November 24, 2023

Scheduled date to file Securities Report:

November 24, 2023

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:

Yes

(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended August 31, 2023 (from September 1, 2022 to August 31, 2023)

(1) Consolidated operating results

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Year ended August 31, 2023

815,560

2.9

14,215

(20.4)

16,566

(20.4)

2,936

(49.1)

Year ended August 31, 2022

792,368

-

17,863

-

20,808

-

5,765

-

Note: Comprehensive income

Year ended August 31, 2023

¥10,094 million

[11.0%]

Year ended August 31, 2022

¥9,096 million

[-%]

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations effective from the beginning of the fiscal year ended August 31, 2022. Each figure for the fiscal year ended August 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations. Therefore, the percentages of change from the previous year are not stated.

			Earnings per share	Diluted earnings	Return on equity	Ordinary profit/	Operating profit/
				per share	total assets	net sales
				Yen		Yen		%		%	%
Year ended August 31, 2023		17.16		17.12		2.2		3.7	1.7
Year ended August 31, 2022		33.22		33.16		4.2		4.6	2.3
Reference:	Share of profit (loss) of entities accounted for using equity method	Year ended August 31, 2023:	¥(82) million
							Year ended August 31, 2022:	¥19 million
(2) Consolidated financial position
			Total assets		Net assets	Equity ratio		Net assets per share
			Millions of yen	Millions of yen			%		Yen
As of August 31, 2023			449,840		176,383			30.5		801.38
As of August 31, 2022			456,466		169,133			28.8		767.54
Reference:	Equity	As of August 31, 2023:	¥137,173 million
		As of August 31, 2022:	¥131,375 million

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations effective from the beginning of the fiscal year ended August 31, 2022. Each figure as of August 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended August 31, 2023	10,078	(11,118)	(13,580)	75,135
Year ended August 31, 2022	25,317	(18,076)	(26,565)	89,536
		- 1 -

2. Cash dividends

		Annual dividends per share		Total cash	Dividend	Ratio of
						dividends to
	1st quarter-	2nd quarter-	3rd quarter-	Fiscal year-		dividends	payout ratio
	Total	net assets
	(Total)	(Consolidated)
	end	end	end	end		(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended	-	5.00	-	10.00	15.00	2,580	45.2	1.9
August 31, 2022
Year ended	-	5.00	-	10.00	15.00	2,567	87.4	1.9
August 31, 2023
Year ending
August 31, 2024	-	9.00	-	9.00	18.00		40.8
(Forecast)

3. Forecast of consolidated financial results for the year ending August 31, 2024 (from September 1, 2023 to August 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending	445,000	9.2	7,600	2.9	8,400	(0.3)		3,850	(8.4)	22.49
February 29, 2024
Full year	897,500	10.0	15,800	11.1	18,200	9.9		7,550	157.1	44.11
4. Notes
(1) Changes in significant subsidiaries during the year ended August 31, 2023			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of August 31, 2023	188,146,304	shares	As of August 31, 2022	188,146,304	shares
Number of treasury shares at the end of the period
	As of August 31, 2023	16,974,305	shares	As of August 31, 2022	16,981,502	shares
Average number of shares during the period
	Year ended August 31, 2023	171,168,545	shares	Year ended August 31, 2022	173,570,349	shares

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Reference: Summary of non-consolidated financial results
Non-consolidated financial results for the year ended August 31, 2023 (from September 1, 2022 to August 31, 2023)
(1) Non-consolidated operating results				Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit		Profit
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Year ended August 31, 2023	425,526	4.9	847	-	3,860		17.2	(4,304)	-
Year ended August 31, 2022	405,608	-	75	-	3,294		-	2,057	-
	Earnings per share	Diluted earnings per share
		Yen		Yen
Year ended August 31, 2023		(25.15)		-
Year ended August 31, 2022		11.85		11.85

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations effective from the beginning of the fiscal year ended August 31, 2022. Each figure for the fiscal year ended August 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations. Therefore, the percentages of change from the previous year are not stated.

(2) Non-consolidated financial position

		Total assets	Net assets	Equity ratio	Net assets per share
		Millions of yen	Millions of yen	%	Yen
As of August 31, 2023			301,307	83,161	27.6	485.55
As of August 31, 2022			312,594	86,586	27.7	505.57
Reference: Equity	As of August 31, 2023:	¥83,111 million
	As of August 31, 2022:	¥86,536 million

Note: The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations effective from the beginning of the fiscal year ended August 31, 2022. Each figure as of August 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of forecasts of financial results, and other special matters (Caution concerning forward-looking statements)
  The forward-looking statements, including the earnings forecasts, shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the
  Company's actual results. Actual financial results may differ substantially due to various factors.
  (How to obtain supplementary materials on financial results and contents of financial results meeting)
  The Company plans to hold the financial results meeting for institutional investors and analysts on Tuesday, October 17, 2023. The images (video) and explanation contents (audio) of the presentation will be posted on the Company's website along with the financial results materials.

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of August 31, 2022	As of August 31, 2023
Assets
Current assets
Cash and deposits	91,081	75,135
Accounts receivable - trade	41,672	44,540
Merchandise and finished goods	100,872	105,260
Raw materials and supplies	513	575
Program right	176	269
Other	18,128	21,662
Allowance for doubtful accounts	(186)	(198)
Total current assets	252,258	247,245
Non-current assets
Property, plant and equipment
Buildings and structures	67,183	66,109
Accumulated depreciation	(39,271)	(40,562)
Buildings and structures, net	27,912	25,547
Machinery, equipment and vehicles	6,854	7,581
Accumulated depreciation	(2,780)	(3,900)
Machinery, equipment and vehicles, net	4,074	3,680
Land	47,594	47,747
Leased assets	8,462	8,444
Accumulated depreciation	(7,239)	(7,428)
Leased assets, net	1,222	1,016
Construction in progress	279	68
Other	26,026	25,804
Accumulated depreciation	(20,079)	(20,759)
Other, net	5,946	5,044
Total property, plant and equipment	87,030	83,104
Intangible assets
Goodwill	5,496	5,303
Other	24,725	26,687
Total intangible assets	30,222	31,990
Investments and other assets
Investment securities	13,192	16,918
Long-term loans receivable	416	1,798
Deferred tax assets	24,466	20,863
Retirement benefit asset	2,942	3,138
Guarantee deposits	41,094	40,641
Other	5,019	4,880
Allowance for doubtful accounts	(176)	(740)
Total investments and other assets	86,954	87,500
Total non-current assets	204,207	202,595
Total assets		456,466	449,840

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			(Millions of yen)
		As of August 31, 2022	As of August 31, 2023
Liabilities
Current liabilities
Accounts payable - trade	42,810	39,919
Short-term borrowings	65,006	78,000
Current portion of bonds payable	200	200
Current portion of long-term borrowings	22,954	20,304
Lease liabilities	404	348
Income taxes payable	2,455	2,817
Contract liabilities	34,390	31,112
Provision for bonuses	3,867	4,358
Provision for loss on store closings	506	135
Asset retirement obligations	524	433
Other	24,659	27,232
Total current liabilities	197,781	204,862
Non-current liabilities
Bonds payable	400	200
Long-term borrowings	43,945	24,022
Lease liabilities	587	490
Deferred tax liabilities	828	476
Contract liabilities	8,942	8,781
Provision for goods warranties	262	178
Provision for loss on store closings	458	387
Provision for loss on business of subsidiaries and	54	47
associates
Retirement benefit liability	19,767	19,347
Asset retirement obligations	10,187	10,387
Other	4,116	4,274
Total non-current liabilities	89,551	68,593
Total liabilities	287,332	273,456
Net assets
Shareholders' equity
Share capital	25,929	25,929
Capital surplus	27,107	27,081
Retained earnings	98,753	99,438
Treasury shares	(21,693)	(21,684)
Total shareholders' equity	130,097	130,764
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,599	5,517
Remeasurements of defined benefit plans	(321)	892
Total accumulated other comprehensive income	1,278	6,409
Share acquisition rights	183	211
Non-controlling interests	37,574	38,998
Total net assets	169,133	176,383
Total liabilities and net assets		456,466	449,840

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