Izumi : Summary of Consolidated Financial Results for the Nine Months Ended November 30, 2021

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 Nine Months Ended November 30, 2021 (Based on Japanese GAAP)

January 11, 2022

Company name:	IZUMI CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	8273	URL https://www.izumi.co.jp/
Representative:	President and Representative Director	Yasuaki Yamanishi
Inquiries:	Executive Officer and General Manager of	Kiminari Taira	TEL [phone]
Finance & Accounting Department
Scheduled date to file Quarterly Securities Report:	January 12, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for nine months ended November 30, 2021 (from March 1, 2021 to November 30, 2021)

(1) Consolidated financial results (cumulative)										Percentages indicate year-on-year changes
	Operating revenue		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
Nine months ended November 30,	Millions of yen			%	Millions of yen		%	Millions of yen			%	Millions of yen		%
496,093			(0.1)		23,868		(4.7)		23,743		(6.3)		16,371		1.2
2021
Nine months ended November 30,	496,663			(9.7)		25,045		18.3		25,329		19.6		16,185		18.2
2020
	Earnings per share	Diluted earnings per share
Nine months ended November 30,				Yen					Yen
			228.88					-
2021
Nine months ended November 30,				225.87					-
2020
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio
	Millions of yen		Millions of yen						%
As of November 30, 2021		477,206				255,492						50.7
As of February 28, 2021		489,692				245,411						47.5
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end			3rd quarter-end		Fiscal year-end	Total
	Yen			Yen				Yen					Yen			Yen
Year ended February 28, 2021			-			40.00				-					43.00			83.00
Year ending February 28, 2022			-			43.00				-
Year ending February 28, 2022															43.00			86.00
(Forecast)

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3. Forecast of consolidated financial results for the fiscal year ending February 28, 2022 (from March 1, 2021 to February 28, 2022) Percentages indicate year-on-year changes

	Operating revenue	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
Full year	679,100	(0.1)	34,800	(2.7)	34,600	(4.1)	22,300	(3.3)	311.81

4. Notes

1. Changes in significant subsidiaries during the nine months ended November 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) 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:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of November 30, 2021	71,665,200	shares	As of February 28, 2021	71,665,200	shares
Number of treasury shares at the end of the period
	As of November 30, 2021	187,300	shares	As of February 28, 2021	8,106	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended November 30, 2021	71,529,614	shares	Nine months ended November 30, 2020	71,657,724	shares

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Quarterly consolidated financial statements

Quarterly consolidated balance sheets

			(Millions of yen)
		As of February 28, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits	25,306	9,390
Notes and accounts receivable - trade	42,497	48,268
Merchandise and finished goods	21,661	23,269
Work in process	20	69
Raw materials and supplies	458	508
Other	17,717	13,524
Allowance for doubtful accounts	(550)	(537)
Total current assets	107,112	94,493
Non-current assets
Property, plant and equipment
Buildings and structures, net	155,281	151,523
Land	163,136	166,490
Other, net	12,121	13,574
Total property, plant and equipment	330,539	331,587
Intangible assets
Goodwill	2,441	2,041
Other	8,249	8,965
Total intangible assets	10,690	11,007
Investments and other assets
Other	41,896	40,681
Allowance for doubtful accounts	(546)	(563)
Total investments and other assets	41,350	40,117
Total non-current assets	382,580	382,712
Total assets	489,692	477,206

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			(Millions of yen)
		As of February 28, 2021	As of November 30, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	47,367	37,539
Short-term borrowings	1,300	13,250
Current portion of long-term borrowings	19,756	17,979
Income taxes payable	7,983	2,747
Provision for bonuses	2,204	4,330
Provision for bonuses for directors (and other officers)	36	11
Provision for point card certificates	2,416	2,796
Provision for loss on recollection of gift certificates	115	115
Provision for loss on building demolition	117	428
Other	32,298	25,143
Total current liabilities	113,596	104,344
Non-current liabilities
Long-term borrowings	88,335	74,510
Provision for retirement benefits for directors (and other	915	90
officers)
Provision for loss on interest repayment	146	131
Provision for loss on building demolition	436	-
Retirement benefit liability	8,852	9,174
Asset retirement obligations	8,267	9,109
Other	23,731	24,354
Total non-current liabilities	130,684	117,370
Total liabilities	244,281	221,714
Net assets
Shareholders' equity
Share capital	19,613	19,613
Capital surplus	22,545	22,580
Retained earnings	189,072	199,289
Treasury shares	(30)	(799)
Total shareholders' equity	231,200	240,684
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,171	933
Remeasurements of defined benefit plans	123	140
Total accumulated other comprehensive income	1,294	1,074
Non-controlling interests	12,915	13,733
Total net assets	245,411	255,492
Total liabilities and net assets	489,692	477,206

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Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income Quarterly consolidated statements of income

			(Millions of yen)
		Nine months ended	Nine months ended
		November 30, 2020	November 30, 2021
Net sales	471,234	471,161
Cost of sales	363,321	364,416
Gross profit	107,913	106,745
Operating revenue	25,428	24,931
Operating gross profit	133,341	131,676
Selling, general and administrative expenses	108,295	107,808
Operating profit	25,045	23,868
Non-operating income
Interest and dividend income	186	168
Purchase discounts	136	144
Share of profit of entities accounted for using equity method	99	-
Other	1,113	865
Total non-operating income	1,536	1,178
Non-operating expenses
Interest expenses	540	428
Share of loss of entities accounted for using equity method	-	315
Other	712	560
Total non-operating expenses	1,253	1,304
Ordinary profit	25,329	23,743
Extraordinary income
Gain on sales of non-current assets	36	189
Gain on sales of investment securities	3,102	0
Gain on bargain purchase	-	195
Gain on step acquisitions	-	355
Subsidy income	-	263
Other	-	11
Total extraordinary income	3,139	1,015
Extraordinary losses
Loss on retirement of non-current assets	103	123
Impairment loss	223	247
Loss on store closings	-	85
Loss related to infectious disease	2,074	140
Provision for loss on building demolition	556	-
Other	328	20
Total extraordinary losses	3,287	618
Profit before income taxes	25,181	24,140
Income taxes - current	8,316	7,847
Income taxes - deferred	(735)	(320)
Total income taxes	7,581	7,527
Profit	17,600	16,613
Profit attributable to non-controlling interests	1,415	241
Profit attributable to owners of parent	16,185	16,371

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