Bookoff : Consolidated Summary Report For the First Quarter of the Fiscal Year Ending May 31, 2021

August 7, 2020

Consolidated Summary Report

For the First Quarter of the Fiscal Year Ending May 31, 2021

[Japanese GAAP]

Company Name:	BOOKOFF GROUP HOLDINGS LIMITED	Stock Exchange: Tokyo
Code Number:	9278	URL: https://www.bookoffgroup.co.jp/en/
Representative:	Yasutaka Horiuchi, President and CEO
Inquiries:	Hirofumi Kawamoto, General Manager of Corporate Planning Department Tel: [phone]
Quarterly Report issue date:	August 11, 2020
Dividend payment date:	-
Supplementary materials for quarterly financial results:	Yes
Quarterly financial results briefing:	None
	(Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending May 31, 2021 (April 1, 2020 - June 30, 2020)

(1) Consolidated Results of Operations				(Percentage figures represent year-on-yearchanges)
	Net sales	Operating profit		Ordinary profit	Profit attributable to
		owners of parent
	Million yen	YoY change	Million yen	YoY change	Million yen	YoY change	Million yen		YoY change
	%		%	%		%
Three months ended Jun. 30, 2020	16,917	(18.8)	(172)		-	(111)	-	(689)		-
Three months ended Jun. 30, 2019	20,828	-	945		-	1,092	-	625		-
(Note) Comprehensive income		Three months ended Jun. 30, 2020:		¥(680) million (-%)
		Three months ended Jun. 30, 2019:		¥592 million (-%)
	Net income per share	Fully diluted net income per share
		Yen				Yen
Three months ended Jun. 30, 2020		(39.51)				-
Three months ended Jun. 30, 2019		35.87				-
(2) Consolidated Financial Condition
	Total assets	Net assets		Equity ratio
	Million yen	Million yen		%
As of Jun. 30, 2020		43,038		12,062		27.8
As of Mar. 31, 2020		41,535		12,848		30.7
(Reference) Shareholders' equity	As of Jun. 30, 2020: ¥11,984 million	As of Mar. 31, 2020: ¥12,768 million

2. Dividends

			Dividend per share
	End of 1Q	End of 2Q	End of 3Q		End of FY	Full year
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended Mar. 31, 2020	-	0.00	-		6.00	6.00
Fiscal year ending May 31, 2021	-
Fiscal year ending May 31, 2021 (est.)		0.00	-		6.00	6.00

(Note) Revisions to the most recently announced dividend forecast: Yes

3. Consolidated Forecast for the Fiscal Year Ending May 31, 2021 (April 1, 2020 - May 31, 2021)

(Percentage figures represent year-on-year changes)

	Net sales	Operating profit	Ordinary profit	Profit attributable to		Net income
	owners of parent		per share
	Million yen	YoY change	Million yen	YoY change	Million yen	YoY change	Million yen	YoY change	Yen
	%	%	%		%
Full year	96,000	-	1,300	-	1,650	-	200		-	11.46

(Notes) Revisions to the most recently announced consolidated earnings forecasts: Yes

No prior-year comparisons are shown because the fiscal year ending on May 31, 2021 is a 14-month transitional fiscal period due to the change in the fiscal year.

For the 12-month period ending on March 31, 2021, we forecast consolidated sales of ¥81,000 million, operating profit of ¥1,000 million, ordinary profit of ¥1,300 million and profit attributable to owners of parent of ¥0 million.

Notes:

1. Significant changes in subsidiaries during the period (changes in specific subsidiaries accompanied by changes in the scope of consolidation): None

New: - (company name)

Excluded: - (company name)

1. Application of special accounting methods for presenting quarterly consolidated financial statements: None
2. Changes in accounting policies and accounting-based estimates, and restatements

1. Changes due to revision of accounting standards: None
2. Changes due to other reasons: None
3. Changes in accounting-based estimates: None
4. Restatements: None

4. Number of shares outstanding (common shares)

(Shares)

1. Shares outstanding (including treasury shares)
2. Treasury shares
3. Average number of shares outstanding

As of Jun. 30, 2020	20,547,413	As of Mar. 31, 2020	20,547,413
As of Jun. 30, 2020	3,100,000	As of Mar. 31, 2020	3,100,000
Three months ended Jun. 30, 2020	17,447,413	Three months ended Jun. 30, 2019	17,447,413

• The current summary report is not subject to the quarterly review by certified public accountants or auditing firms.
• Cautionary statement regarding forecasts of operating results and special notes

(Forward-looking statements)

Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. This report is not promises by BOOKOFF GROUP HOLDINGS regarding future performance. Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors.

(How to view supplementary materials for quarterly financial results)

Supplementary materials for the quarterly financial results will be disclosed today (August 7, 2020), using the Timely Disclosure network (TDnet).

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

Table of Contents

1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statement of Income	6
	For the Three-month Period
	Quarterly Consolidated Statement of Comprehensive Income	7
	For the Three-month Period
(3)	Notes to Quarterly Consolidated Financial Statements	8
	(Notes Concerning the Going-Concern Premise)	8
	(Significant Changes in Shareholders' Equity)	8
	(Additional Information)	8
	(Segment Information)	8

1

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

Forward-looking statements in this Consolidated Summary Report are based on information available to management as of the end of the first quarter.

Since the start of operations, the BOOKOFF Group has always been guided by the two corporate philosophies of "contributing to society through our business activities" and "the pursuit of employees' material and spiritual wellbeing." We are currently implementing a medium -term business plan that ends in the fiscal year ending on May 31, 2021, when we will celebrate our 30th anniversary. We are rededicating ourselves to our corporate philosophies and focusing our activities on the mission of "being a source of an enjoyable and prosperous life for many people."

Based on this mission, we will use our strengths in Japan's growing reuse market to become the leading reuse company with books as the core category. Our goal is to become the reuse store chain used by the largest number of customers as we adapt to changes in market conditions.

We have established two core strategies in order to accomplish this goal.

Core strategy I: Upgrade individual stores

We believe that upgrading reuse services in both our retail format and Internet platform is the starting point for becoming Japan's leading reuse company that serves the largest number of customers. We are working on improvements for all store format packages and services.

Core strategy II: Use all the BOOKOFF Group's strengths

In the past, the BOOKOFF Group provided separate services at stores and through channels other than stores. Now, we are creating an integrated framework that combines the platforms for members and buying and selling merchandise with systems that support these activities and with other items. In addition, every service will make full use of member and merchandise information, operational expertise, and other resources we have accumulated in every service category. The objective of these activities is to operate as "One BOOKOFF."

During the first quarter, we opened BOOKOFF SUPER BAZAAR 1-Gou Kyoto Fushimi Store. Furthermore, we have continued to make substantial investments for improving services for app members and establishing a network of franchised stores using our e-purchasing system. Investments have been also used to create an omni- channel structure that utilizes the BOOKOFF Online website and to move forward with our O2O (online -to- offline) strategy. Conducting all business operations in a cohesive manner as "One BOOKOFF" is the objective of all these initiatives.

In the first quarter, the majority of stores directly operated by the BOOKOFF Group temporarily closed or closed only on weekends and holidays in response to the state of emergency in Japan and requests to companies to reduce or suspend business activities because of COVID-19. Most stores that altered operations are located in areas where governments made these requests. As a result, existing store sales were much lower than one year earlier. Starting in the middle of May, we reduced operating hours and sales areas at stores and began reopening most stores while taking many actions to prevent COVID -19 infections. Operations generally returned to normal in early June. Directly operated existing store sales in Japan of the BOOKOFF Group were far below sales one year earlier in April and May but sales in June were higher than one year earlier.

As a result, consolidated net sales amounted to ¥16,917 million, an 18.8% decrease from the same period of the previous fiscal year. The BOOKOFF Group recorded an operating loss of ¥172 million (compared with an operating profit of ¥945 million in the same period of the previous fiscal year), an ordinary loss of ¥111 million (compared with an ordinary profit of ¥1,092 million in the same period of the previous fiscal year), and a loss attributable to owners of parent of ¥689 million (compared with a profit of ¥625 million in the same period of the previous fiscal year).

The operating and ordinary losses were caused by the decline in the gross profit as many stores temporarily closed or reduced operating hours because of COVID -19. The loss attributable to owners of parent was the result of the operating loss and loss on COVID-19.

2

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

(2) Explanation of Financial Position

(Current Assets)

Current assets at the end of the first quarter were ¥24,880 million, an increase of ¥1,175 million compared with ¥23,704 million at the end of the previous fiscal year. The major changes were a ¥542 million decrease in merchandise and a ¥1,729 million increase in cash and deposits mainly because funds were procured for responses to the COVID-19 crisis.

(Non-current Assets)

Non-current assets at the end of the first quarter were ¥18,157 million, an increase of ¥327 million compared with ¥17,830 million at the end of the previous fiscal year. There was an increase of ¥376 million in investments and other assets mainly due to an increase in deferred tax assets.

(Liabilities)

Liabilities at the end of the first quarter were ¥30,975 million, an increase of ¥2,288 million compared with ¥28,687 million at the end of the previous fiscal year. This was mainly attributable to an increase in borrowings to fund responses to the COVID-19 crisis.

(Net Assets)

Net assets at the end of the first quarter were ¥12,062 million, a decrease of ¥785 million compared with ¥12,848 million at the end of the previous fiscal year. Major components were first quarter loss attributable to owners of parent and dividend payments.

(3) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements

For information about the consolidated forecast for the fiscal year ending May 31, 2021, please refer to the press release titled "Notice of Revisions to Consolidated Forecasts and Dividend Forecasts" and "Explanation of Effects of COVID-19 and Forecasts for Results of Operations and the Dividend" (Japanese version only) dated August 7, 2020.

3

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes

1. Quarterly Consolidated Balance Sheet

		(Unit: million yen)
	FY3/2020	First quarter of FY5/2021
	(As of Mar. 31, 2020)	(As of Jun. 30, 2020)
Assets
Current assets
Cash and deposits	6,094	7,823
Accounts receivable-trade	1,898	1,890
Merchandise	13,129	12,586
Other	2,583	2,579
Allowance for doubtful accounts	(0)	(1)
Total current assets	23,704	24,880
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,187	4,172
Leased assets, net	1,359	1,329
Other, net	727	728
Total property, plant and equipment	6,273	6,229
Intangible assets
Goodwill	793	776
Other	1,210	1,221
Total intangible assets	2,003	1,998
Investments and other assets
Guarantee deposits	7,561	7,585
Other	2,052	2,404
Allowance for doubtful accounts	(60)	(60)
Total investments and other assets	9,553	9,929
Total non-current assets	17,830	18,157
Total assets	41,535	43,038

4

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

(Unit: million yen)

		FY3/2020	First quarter of FY5/2021
		(As of Mar. 31, 2020)	(As of Jun. 30, 2020)
Liabilities
Current liabilities
Accounts payable-trade	459	455
Short-term borrowings	5,960	9,492
Current portion of long-term borrowings	3,803	4,032
Lease obligations	417	453
Income taxes payable	282	352
Provision for sales rebates	512	491
Provision for loss on store closings	27	29
Other provisions	497	241
Other	4,738	4,539
Total current liabilities	16,697	20,089
Non-current liabilities
Long-term borrowings	8,058	7,030
Provision for loss on store closings	9	4
Asset retirement obligations	2,358	2,383
Lease obligations	1,181	1,098
Other	381	368
Total non-current liabilities	11,990	10,885
Total liabilities	28,687	30,975
Net assets
Shareholders' equity
Share capital	100	100
Capital surplus	6,485	6,485
Retained earnings	8,550	7,757
Treasury shares	(2,343)	(2,343)
Total shareholders' equity	12,792	11,998
Accumulated other comprehensive income
Valuation difference on available-for-sale	31	55
securities
Foreign currency translation adjustment	(55)	(69)
Total accumulated other comprehensive	(24)	(14)
income
Non-controlling interests	79	78
Total net assets	12,848	12,062
Total liabilities and net assets	41,535	43,038

5

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

1. Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income
   (For the Three-month Period)

			(Unit: million yen)
		First three months of FY3/2020	First three months of FY5/2021
		(Apr. 1, 2019 - Jun. 30, 2019)	(Apr. 1, 2020 - Jun. 30, 2020)
Net sales	20,828	16,917
Cost of sales	7,796	6,334
Gross profit	13,032	10,583
Selling, general and administrative expenses	12,086	10,756
Operating profit (loss)	945	(172)
Non-operating income
Share of profit of entities accounted for using	18	-
equity method
Rent revenues on facilities	82	82
Gain from installment of vending machine	32	21
Gain on sales of recycling goods	101	56
Other	38	30
Total non-operating income	274	191
Non-operating expenses
Interest expenses	39	41
Share of loss of entities accounted for using equity	-	1
method
Rent costs on facilities	76	76
Other	11	9
Total non-operating expenses	127	130
Ordinary profit (loss)	1,092	(111)
Extraordinary losses
Provision for loss on store closings	58	7
Loss on retirement of non-current assets	9	13
Loss on COVID-19	-	740
Total extraordinary losses	67	761
Profit (loss) before income taxes	1,024	(872)
Income taxes-current	86	124
Income taxes-deferred	304	(311)
Total income taxes	391	(186)
Profit (loss)	633	(686)
Profit attributable to non-controlling interests	7	3
Profit (loss) attributable to owners of parent		625	(689)

6

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income

(For the Three-month Period)

		(Unit: million yen)
	First three months of FY3/2020	First three months of FY5/2021
	(Apr. 1, 2019 - Jun. 30, 2019)	(Apr. 1, 2020 - Jun. 30, 2020)
Profit (loss)	633	(686)
Other comprehensive income
Valuation difference on available-for-sale	(14)	14
securities
Foreign currency translation adjustment	(3)	(18)
Share of other comprehensive income of entities	(23)	8
accounted for using equity method
Total other comprehensive income	(41)	5
Comprehensive income	592	(680)
Comprehensive income attributable to
Comprehensive income attributable to owners of	583	(679)
parent
Comprehensive income attributable to non-	8	(0)
controlling interests

7

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the First Quarter of May 2021 Fiscal Year

1. Notes to Quarterly Consolidated Financial Statements (Notes Concerning the Going-Concern Premise)
   Not applicable.

(Significant Changes in Shareholders' Equity)

Not applicable.

(Additional Information)

In the first quarter, there was no additional information concerning the effects of COVID-19 and there were no significant revisions of information in the Securities Report for the previous fiscal year.

(Segment Information)

I. First three months of FY3/2020 (Apr. 1, 2019 - Jun. 30, 2019)

This information is omitted because the Group has only a single segment.

II. First three months of FY5/2021 (Apr. 1, 2020 - Jun. 30, 2020)

This information is omitted because the Group has only a single segment.

This financial report is solely a translation of the Company's Kessan Tanshin (including attachments) in Japanese, which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

8