Isetan Mitsukoshi : Explanatory Materials for Settlement of Consolidated Accounts for the Second Quarter of Fiscal Year Ending March 31, 2022 (PDF2463KB）

Explanatory Materials for Settlement of Consolidated Accounts for the Second Quarter of Fiscal Year Ending March 31, 2022

Since the Accounting Standard for Revenue Recognition, etc. was adopted from the beginning of the fiscal year ending March 31, 2022 (fiscal 2021), figures for items excluding gross sales in business results for the second quarter of fiscal 2021 and the full year forecast for fiscal 2021 presented herein reflect the adoption of this accounting standard, while results for periods prior to fiscal 2021 do not reflect the adoption of this accounting standard. Figures for YoY (%) and YoY difference have been calculated from the results and forecast corresponding to each period.

Figures for "gross sales" and those for net sales presented in "Ⅱ. Isetan Mitsukoshi Ltd. Non-consolidated Business Results 2. Net Sales" represent net sales calculated based on the previous accounting standard.

Table of Contents

I. Isetan Mitsukoshi Holdings Consolidated Results

1.	Outline of Consolidated Business Results	P.1
2.	Consolidated Selling, General and	P.3
	Administrative Expenses
3.	Consolidated Non-operating Income/Loss	P.3
4.	Consolidated Extraordinary Gain/Loss	P.4
5.	Consolidated Capital Investment	P.4
6.	Net Sales by Segment and Operating Income/Lo P.5
7.	Consolidated Companies	P.6

II. Isetan Mitsukoshi Ltd. Non-consolidated Business Results

1.	Outline of Non-consolidated Business Results	P.10
2.	Net Sales	P.12

November 10, 2021

Isetan Mitsukoshi Holdings Ltd.

I. Isetan Mitsukoshi Holdings Consolidated Results

1. Outline of Consolidated Business Results

(1) Consolidated Business Results

						(Millions of yen)
		Fiscal year ended	Fiscal year ended	Fiscal year ending
		March 31, 2020	March 31, 2021	March 31, 2022
		2Q	Full Year	2Q	Full Year	2Q	Full Year
		(Forecast)
Gross sales	-	-	-	-	398,997	945,000
	YoY (%)	-	-	-	-	118.9	115.8
	YoY difference	-	-	-	-	63,296	128,990
Net sales		577,288	1,119,191	335,701	816,009	187,932	435,000
	YoY (%)	102.4	93.5	58.2	72.9	56.0	53.3
	YoY difference	13,297	(77,611)	(241,587)	(303,182)	(147,768)	(381,009)
Gross profit	167,903	322,702	96,072	227,565	107,993	251,000
	YoY (%)	101.5	92.7	57.2	70.5	112.4	110.3
	YoY difference	2,419	(25,579)	(71,831)	(95,136)	11,921	23,434
Operating income	13,886	15,679	(17,812)	(20,976)	(7,758)	3,000
	YoY (%)	128.3	53.6	-	-	-	-
	YoY difference	3,061	(13,550)	(31,699)	(36,655)	10,054	23,976
Recurring income	15,057	19,771	(17,092)	(17,171)	(7,114)	3,000
	YoY (%)	122.6	61.8	-	-	-	-
	YoY difference	2,774	(12,223)	(32,149)	(36,943)	9,977	20,171
Net income attributable to parent company shareholders	7,595	(11,187)	(36,786)	(41,078)	(8,136)	3,000
	YoY (%)	193.3	-	-	-	-	-
	YoY difference	3,665	(24,667)	(44,381)	(29,891)	28,649	44,078
Net income per share (yen)	19.47	(28.90)	(96.74)	(107.96)	(21.35)	7.87
	YoY difference (yen	9.39	(63.47)	(116.21)	(79.06)	75.39	115.83
Gross profit margin (%)*	29.08	28.83	28.62	27.89	57.46	57.70
	YoY difference (%)	(0.3)	(0.3)	(0.5)	(0.9)	28.8	29.8
Operating profit margin (%)*	2.4	1.4	(5.3)	(2.6)	(4.1)	0.7
	YoY difference (%)	0.5	(1.0)	(7.7)	(4.0)	1.2	3.3
Recurring profit margin (%)*	2.6	1.8	(5.1)	(2.1)	(3.8)	0.7
	YoY difference (%)	0.4	(0.9)	(7.7)	(3.9)	1.3	2.8
Return on sales (%)*	1.3	(1.0)	(11.0)	(5.0)	(4.3)	0.7
	YoY difference (%)	0.6	(2.1)	(12.3)	(4.0)	6.6	5.7

*Net sales for the second quarter and full year (forecast) of the fiscal year ending March 31, 2022 reflect the adoption of the Accounting Standard for Revenue Recognition, etc., and each profit margin item and return on sales have been calculated based on net sales that reflect the adoption of this standard.

(2) Consolidated Financial Positions

						(Millions of yen)
		Fiscal year ended	Fiscal year ended	Fiscal year ending
		March 31, 2020	March 31, 2021	March 31, 2022
		2Q	Full Year	2Q	Full Year	2Q	Full Year
		(Forecast)
Total assets	1,254,225	1,223,800	1,166,391	1,198,303	1,155,661	1,164,000
	YoY (%)	100.3	98.1	93.0	97.9	99.1	97.1
	YoY difference	4,303	(23,626)	(87,834)	(25,497)	(10,729)	(34,303)
Net assets	583,582	550,161	510,131	508,275	492,948	494,000
	YoY (%)	99.7	93.9	87.4	92.4	96.6	97.2
	YoY difference	(1,869)	(35,553)	(73,450)	(41,885)	(17,183)	(14,275)
Interest-bearing debt	156,445	175,548	184,064	208,884	207,688	*1 175,000
	YoY (%)	95.6	128.4	117.7	119.0	112.8	83.8
	YoY difference	(7,254)	38,801	27,619	33,336	23,624	(33,884)
Net financial revenue	381	578	207	187	9	0
	YoY (%)	101.8	89.4	54.5	32.5	4.4	-
	YoY difference	6	(68)	(173)	(390)	(198)	(187)
Return on assets (ROA) (%)	-	1.3	-	(1.7)	-	0.3
	YoY difference (%)	-	(1.0)	-	(3.0)	-	2.0
Return on equity (ROE) (%)	-	(2.0)	-	(7.9)	-	0.6
	YoY difference (%)	-	(4.3)	-	(5.9)	-	8.5
Rate of return on invested capital (ROIC) (%)*2	-	1.5	-	(2.0)	-	0.3
	YoY difference (%)	-	(1.3)	-	(3.6)	-	2.3
Shareholder's equity ratio (%)	45.8	44.3	43.1	41.9	42.1	41.9
	YoY difference (%)	(0.2)	(1.8)	(2.7)	(2.4)	(1.0)	0.0
Interest-bearing debt dependency (%)	12.5	14.3	15.8	17.4	18.0	15.0
	YoY difference (%)	(0.6)	3.4	3.3	3.1	2.2	(2.4)
Consolidated debt equity ratio (DER) (times)	0.27	0.32	0.37	0.42	0.43	0.36
	YoY difference (tim	(0.01)	0.09	0.09	0.09	0.06	(0.06)

*1 The amount of interest-bearing debt including lease obligations is ¥213,776 million.

*2 Rate of return on invested capital (ROIC) = Consolidated operating income after deducting taxes/(Interest-bearing debt + Shareholder's equity)

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(3) Consolidated Business Results of Consolidated Cash Flows

						(Millions of yen)
		Fiscal year ended	Fiscal year ended	Fiscal year ending
		March 31, 2020	March 31, 2021	March 31, 2022
		2Q	Full Year	2Q	Full Year	2Q	Full Year
		(Forecast)
Cash flows from operating activities	6,499	16,281	(16,718)	1,197	4,881	19,000
	YoY difference	16,532	(12,005)	(23,217)	(15,083)	21,600	17,802
Cash flows from investing activities	(19,321)	(9,965)	(17,937)	(4,737)	(11,267)	(20,000)
	YoY difference	2,834	12,484	1,383	5,228	6,670	(15,262)
Cash flows from financing activities	14,456	20,259	6,714	29,733	(4,567)	(40,000)
	YoY difference	(6,104)	29,323	(7,741)	9,474	(11,282)	(69,733)
Cash and cash equivalents at end of period	51,438	76,659	48,157	102,797	92,542	62,000
	YoY difference	9,566	26,511	(3,280)	26,138	44,384	(40,797)

(4) Others

						(Millions of yen)
		Fiscal year ended	Fiscal year ended	Fiscal year ending
		March 31, 2020	March 31, 2021	March 31, 2022
		2Q	Full Year	2Q	Full Year	2Q	Full Year
		(Forecast)
Capital investment		15,825	38,055	14,804	29,484	9,264	21,000
	YoY (%)	139.1	67.3	93.6	77.5	62.6	71.2
	YoY difference	4,450	(18,470)	(1,020)	(8,570)	(5,540)	(8,484)
Number of employees (regular employees)	13,074	12,453	11,932	11,588	9,957	9,900
	YoY (%)	95.5	94.3	91.3	93.1	83.4	85.4
	YoY difference	(615)	(758)	(1,142)	(865)	(1,975)	(1,688)
Number of employees (temporary employees)	9,489	9,146	8,714	8,419	7,796	7,690
	YoY (%)	90.3	86.9	91.8	92.1	89.5	91.3
	YoY difference	(1,024)	(1,375)	(775)	(727)	(918)	(729)
Number of consolidated subsidiaries		38	38	39	38	35	35
(as of March 31)	YoY difference	(5)	(3)	1	0	(4)	(3)
Number of equity-method affiliates		9	8	9	9	9	9
(as of March 31)	YoY difference	0	(1)	0	1	0	0
Cash dividends per share (yen)		6.00	12.00	3.00	9.00	5.00	10.00
(Total annual dividend for the full year)	YoY difference (yen)	0.00	0.00	(3.00)	(3.00)	2.00	1.00

*The decrease in the number of employees in the second quarter and the full year (forecast) of the fiscal year ending March 31, 2022 is primarily due to the exclusion of SOCIE WORLD CO., LTD., etc. from the scope of consolidation due to the transfer of shares.

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2. Consolidated Selling, General and Administrative Expenses

						(Millions of yen)
		Fiscal year ended	Fiscal year ended	Fiscal year ending
		March 31, 2020	March 31, 2021	March 31, 2022
		2Q	Full Year	2Q	Full Year	2Q	Full Year
		(Forecast)
Selling, general and administrative expenses	154,016	307,023	113,884	248,542	115,751	248,000
	YoY (%)	99.6	96.2	73.9	81.0	101.6	99.8
	YoY difference	(641)	(12,029)	(40,131)	(58,480)	1,866	(542)
Advertising expenses	8,956	18,702	4,205	10,312	3,848	9,700
	YoY (%)	100.1	97.8	47.0	55.1	91.5	94.1
	YoY difference	13	(411)	(4,750)	(8,390)	(356)	(612)
Point related expenses	10,590	19,280	6,429	15,290	1,691	3,700
	YoY (%)	104.2	89.8	60.7	79.3	26.3	24.2
	YoY difference	424	(2,183)	(4,160)	(3,990)	(4,737)	(11,590)
Personnel expenses	51,050	103,778	39,686	84,488	42,821	87,800
	YoY (%)	96.9	94.9	77.7	81.4	107.9	103.9
	YoY difference	(1,610)	(5,521)	(11,364)	(19,289)	3,135	3,311
Depreciation and amortization	13,476	27,021	10,894	23,629	11,191	23,600
	YoY (%)	104.1	105.0	80.8	87.4	102.7	99.9
	YoY difference	530	1,287	(2,582)	(3,391)	296	(29)
Lease payments	16,150	31,858	11,619	25,939	14,802	30,600
	YoY (%)	88.7	88.0	71.9	81.4	127.4	118.0
	YoY difference	(2,049)	(4,339)	(4,530)	(5,919)	3,182	4,660
Business consignment expenses	16,432	33,426	13,501	29,978	13,910	29,800
	YoY (%)	98.0	98.4	82.2	89.7	103.0	99.4
	YoY difference	(338)	(535)	(2,930)	(3,447)	409	(178)
Others	37,359	72,954	27,547	58,902	27,485	62,800
	YoY (%)	106.8	99.6	73.7	80.7	99.8	106.6
	YoY difference	2,388	(324)	(9,812)	(14,051)	(61)	3,897
SGA ratio (%)	26.7	27.4	33.9	30.5	61.6	57.0
	YoY difference (%	(0.7)	0.8	7.2	3.0	27.7	26.6

*The SGA ratios for the second quarter and the full year (forecast) of the fiscal year ending March 31, 2022 have been calculated based on net sales that reflect the adoption of the Accounting Standard for Revenue Recognition, etc.

3. Consolidated Non-operating Income/Loss

							(Millions of yen)
			Fiscal year ended	Fiscal year ended	Fiscal year ending
			March 31, 2020	March 31, 2021	March 31, 2022
			2Q	Full Year	2Q	Full Year	2Q	Full Year
			(Forecast)
Non-operating income	4,020	16,409	3,874	15,804	2,748	5,200
		YoY difference	(185)	2,562	(145)	(604)	(1,125)	(10,604)
	Interest and dividend income	831	1,520	655	1,081	443	900
		YoY difference	38	103	(176)	(439)	(211)	(181)
	Equity in earnings of affiliates	1,041	2,228	-	2,003	283	1,300
		YoY difference	(883)	(830)	(1,041)	(225)	283	(703)
	Income from unredeemed gift vouchers	0	5,928	-	6,722	-	-
		YoY difference	0	181	0	794	-	(6,722)
	Gain on donated fixed assets	1,534	5,231	2,049	3,247	737	1,300
		YoY difference	494	2,586	515	(1,984)	(1,312)	(1,947)
	Other non-operating income	612	1,499	1,170	2,749	1,284	1,700
		YoY difference	163	522	557	1,250	113	(1,049)
Non-operating expenses	2,850	12,316	3,154	11,999	2,105	5,200
		YoY difference	100	1,236	304	(317)	(1,049)	(6,799)
	Interest expenses	450	942	447	893	434	900
		YoY difference	31	171	(3)	(48)	(12)	6
	Equity in losses of affiliates	-	-	19	-	-	-
		YoY difference	-	-	19	-	(19)	-
	Loss on retirement of property and equipment	647	1,233	998	1,757	556	1,200
		YoY difference	104	(108)	351	523	(442)	(557)
.	Provision of reserve for loss from redemption of gift vouchers	-	5,873	-	6,445	-	300
		YoY difference	-	128	-	572	-	(6,145)
	Other non-operating expenses	1,751	4,267	1,689	2,902	1,113	2,800
		YoY difference	(35)	1,044	(62)	(1,364)	(575)	(102)

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4. Consolidated Extraordinary Gain/Loss

(Millions of yen)

		Fiscal year
		ending	Details
		March 31, 2022
		2Q
Extraordinary gain	2,986
	Gain on sale of stocks of subsidiaries and associates	2,240	Transfer of shares of SWP Holdings Inc. and SOCIE WORLD CO.,
	LTD.
	Subsidies for employment adjustment	745
Extraordinary loss	3,414
	Loss on disposal of property and equipment	211	Remodeling of Niigata Isetan, Matsuyama Mitsukoshi, etc.
	Impairment losses	108	Software
	Loss on closing of stores	216	Mitsukoshi Italia S.r.l.
			Personnel expenses: 905 million, Depreciation and amortization:
	COVID-19-related loss	2,876	537 million, Lease payments: 580 million, Business consignment
			expenses: 261 million, etc.

5. Consolidated Capital Investment

						(Millions of yen)
		Fiscal year ended	Fiscal year ended	Fiscal year ending
		March 31, 2020	March 31, 2021	March 31, 2022
		2Q	Full Year	2Q	Full Year	2Q	Full Year
		(Forecast)
Isetan Mitsukoshi Ltd.	11,621	28,569	11,445	21,802	4,810	14,200
	YoY (%)	148.3	58.8	98.5	76.3	42.0	65.1
	YoY difference	3,786	(19,998)	(176)	(6,766)	(6,635)	(7,602)
MICARD CO. Ltd.	494	1,251	540	1,425	1,445	1,700
	YoY (%)	75.5	99.4	109.3	113.9	267.4	119.3
	YoY difference	(160)	(7)	45	173	904	274
Isetan Mitsukoshi System Solutions Ltd.	2,116	4,764	1,837	4,128	2,519	4,500
	YoY (%)	116.0	109.8	86.8	86.6	137.1	109.0
	YoY difference	292	425	(278)	(636)	681	371
Others	1,664	3,696	1,025	2,181	503	700
	YoY (%)	147.1	133.9	61.6	59.0	49.1	32.1
	YoY difference	533	935	(639)	(1,514)	(521)	(1,481)
Elimination of intra-company transactions	(72)	(226)	(43)	(53)	(14)	(100)
	YoY (%)	-	-	-	-	-	-
	YoY difference	0	174	28	173	29	(46)
Total	15,825	38,055	14,804	29,484	9,264	21,000
	YoY (%)	139.1	67.3	93.6	77.5	62.6	71.2
	YoY difference	4,450	(18,470)	(1,020)	(8,570)	(5,540)	(8,484)
*Figures include investments made for intangible fixed assets.

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