Izumi : Summary of Consolidated Financial Results for the Year Ended February 28, 2021

(For institutional investors and analysts)

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 February 28, 2021

(Based on Japanese GAAP)

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:	Director and Senior Managing Executive	Tatsuya Mikamoto
Officer and Administration Division Manager
Scheduled date of ordinary general meeting of shareholders:	May 26, 2021
Scheduled date to file Securities Report:	May 27, 2021
Scheduled date to commence dividend payments:	May 27, 2021
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:		Yes

April 13, 2021

TEL +81-82-264-3211

													(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 28, 2021 (from March 1, 2020 to February 28, 2021)
(1) Consolidated financial results																Percentages indicate year-on-year changes
	Operating revenue		Operating profit			Ordinary profit		Profit attributable to
					owners of parent

	Millions of yen		%		Millions of yen		%		Millions of yen		%		Millions of yen		%
Year ended February 28, 2021		679,778		(8.7)			35,781		12.2				36,078		12.8			23,053		15.5
Year ended February 29, 2020		744,349		1.7			31,888		(9.6)				31,979		(8.9)			19,953		(15.1)

	Earnings per share		Diluted earnings				Profit/equity		Ordinary profit/total	Operating profit/net
				per share						assets			sales

			Yen					Yen								%				%		%
Year ended February 28, 2021		321.72				-							10.3				7.4			5.5
Year ended February 29, 2020		278.45				-								9.6				6.6			4.5
(2) Consolidated financial position
			Total assets					Net assets				Equity ratio			Net assets per share
			Millions of yen			Millions of yen							%						Yen
As of February 28, 2021		489,692					245,411							47.5			3,244.56
As of February 29, 2020		490,106					226,264							43.7			2,991.24
(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 February 28, 2021		48,320					(6,633)				(25,361)					25,306
Year ended February 29, 2020		57,681					(16,693)				(40,142)					8,982
2. Cash dividends
								Annual dividends per share							Total cash	Dividend			Ratio of
																				dividends	payout ratio	dividends to
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end			Total	(Full year)	(Consolidated)			net assets
					(Consolidated)
			Yen				Yen	Yen			Yen			Yen	Millions of yen	%		%
Year ended February 29, 2020		-			40.00			-		40.00		80.00		5,732	28.7		2.8
Year ended February 28, 2021		-			40.00			-		43.00		83.00		5,947	25.8		2.7
Year ending February 28, 2022 (Forecast)		-			43.00			-		43.00		86.00				26.2

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

Six months ending	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
354,300	8.6	17,500		6.3	17,700		6.4		11,900	11.4	166.07
August 31, 2021

Full year	721,400	6.1	36,700		2.6	36,800		2.0		23,500	1.9	327.95
4. Notes
(1) Changes in significant subsidiaries during the period						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:	No
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 February 28, 2021	71,665,200	shares	As of February 29, 2020	71,665,200	shares
Number of treasury shares at the end of the period
	As of February 28, 2021	8,106	shares	As of February 29, 2020	7,346	shares
Average number of shares during the period
	Year ended February 28, 2021	71,657,606	shares	Year ended February 29, 2020	71,658,190	shares

Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 29, 2020	As of February 28, 2021

Assets
Current assets
Cash and deposits	8,982	25,306
Notes and accounts receivable - trade	46,392	42,497
Merchandise and finished goods	25,780	21,661
Work in process	13	20
Raw materials and supplies	535	458
Other	17,242	17,717
Allowance for doubtful accounts	(644)	(550)
Total current assets	98,302	107,112
Non-current assets

Property, plant and equipment
Buildings and structures	399,826	400,335
Accumulated depreciation	(238,153)	(245,053)
Buildings and structures, net	161,672	155,281

Machinery, equipment and vehicles	10,062	11,242
Accumulated depreciation	(6,683)	(7,185)
Machinery, equipment and vehicles, net	3,379	4,057

Land	163,240	163,136
Leased assets	117	84
Accumulated depreciation	(106)	(64)

Leased assets, net	10	20

Construction in progress	1,552	497
Other	42,148	42,840
Accumulated depreciation	(34,556)	(35,294)

Other, net	7,591	7,545

Total property, plant and equipment	337,447	330,539
Intangible assets

Goodwill	3,172	2,441
Other	8,307	8,249

Total intangible assets	11,479	10,690
Investments and other assets

Investment securities	11,039	9,876
Long-term loans receivable	1,563	1,542
Deferred tax assets	8,326	9,244
Leasehold and guarantee deposits	17,722	16,909
Other	4,783	4,322
Allowance for doubtful accounts	(558)	(546)

Total investments and other assets	42,877	41,350

Total non-current assets	391,804	382,580

Total assets	490,106	489,692

			(Millions of yen)
		As of February 29, 2020	As of February 28, 2021

Liabilities
Current liabilities
Notes and accounts payable - trade	49,977	47,367
Short-term borrowings	2,000	1,300
Current portion of long-term borrowings	19,925	19,756
Accounts payable - other	15,653	14,076
Income taxes payable	5,089	7,983
Provision for bonuses	2,206	2,204
Provision for bonuses for directors (and other officers)	27	36
Provision for point card certificates	2,695	2,416
Provision for loss on recollection of gift certificates	81	115
Provision for loss on building demolition	-	117
Asset retirement obligations	13	39
Other	16,291	18,183

Total current liabilities	113,962	113,596
Non-current liabilities
Long-term borrowings	106,991	88,335
Lease obligations	5	17
Long-term leasehold and guarantee deposits received	23,498	22,552
Provision for retirement benefits for directors (and other	1,002	915
officers)

Provision for loss on interest repayment	114	146
Provision for loss on building demolition	-	436
Retirement benefit liability	8,514	8,852
Deferred tax liabilities	1,413	980
Asset retirement obligations	8,099	8,267
Other	237	180

Total non-current liabilities	149,879	130,684

Total liabilities	263,841	244,281
Net assets

Shareholders' equity
Share capital	19,613	19,613
Capital surplus	22,267	22,545
Retained earnings	171,751	189,072
Treasury shares	(27)	(30)

Total shareholders' equity	213,604	231,200
Accumulated other comprehensive income

Valuation difference on available-for-sale securities	753	1,171
Remeasurements of defined benefit plans	(12)	123

Total accumulated other comprehensive income	741	1,294

Non-controlling interests	11,918	12,915

Total net assets	226,264	245,411
Total liabilities and net assets	490,106	489,692

Consolidated statements of income and consolidated statements of comprehensive income

Consolidated statements of income

			(Millions of yen)
		Year ended	Year ended
		February 29, 2020	February 28, 2021
Net sales	709,455	645,672
Cost of sales	553,351	498,204
Gross profit	156,103	147,467

Operating revenue	34,893	34,105

Operating gross profit	190,997	181,573
Selling, general and administrative expenses

Advertising and promotion expenses	16,430	9,643
Distribution expenses	8,215	8,152
Provision of allowance for doubtful accounts	230	184
Employees' salaries and bonuses	54,998	53,319
Provision for bonuses	2,011	2,119
Welfare expenses	10,456	10,522
Retirement benefit expenses	1,295	1,213
Rent expenses	11,855	11,526
Utilities expenses	8,471	7,482
Depreciation	15,672	15,243
Provision for retirement benefits for directors (and other	61	(57)
officers)

Other	29,409	26,441

Total selling, general and administrative expenses	159,108	145,791

Operating profit	31,888	35,781
Non-operating income

Interest and dividend income	250	243
Purchase discounts	291	183
Share of profit of entities accounted for using equity method	9	84
Penalty income	164	149
Other	768	1,232

Total non-operating income	1,484	1,893
Non-operating expenses

Interest expenses	818	700
Compensation expenses	142	115
Other	433	781

Total non-operating expenses	1,393	1,597

Ordinary profit	31,979	36,078

			(Millions of yen)
		Year ended	Year ended
		February 29, 2020	February 28, 2021
Extraordinary income
Gain on sales of non-current assets	329	57
Gain on sales of investment securities	9	3,115
Subsidy income	310	25
Income from insurance	-	412
Other	19	-

Total extraordinary income	669	3,610
Extraordinary losses

Loss on sales of non-current assets	21	1
Loss on retirement of non-current assets	333	121
Impairment loss	1,146	1,641
Loss on valuation of investment securities	486	-
Loss on store closings	419	38
Loss on changes in construction project	213	-
Loss related to infectious disease	-	2,074
Loss on disaster	-	222
Provision for loss on building demolition	-	556
Other	183	179

Total extraordinary losses	2,803	4,835

Profit before income taxes	29,845	34,852

Income taxes - current	9,685	11,788
Income taxes - deferred	(179)	(1,482)

Total income taxes	9,505	10,306

Profit	20,339	24,546

Profit attributable to non-controlling interests	385	1,493

Profit attributable to owners of parent	19,953	23,053

Consolidated statements of comprehensive income

		(Millions of yen)
	Year ended	Year ended
	February 29, 2020	February 28, 2021
Profit	20,339	24,546
Other comprehensive income
Valuation difference on available-for-sale securities	233	287
Remeasurements of defined benefit plans, net of tax	195	126
Share of other comprehensive income of entities accounted	-	12
for using equity method

Total other comprehensive income	429	425

Comprehensive income	20,769	24,972
Comprehensive income attributable to

Comprehensive income attributable to owners of parent	20,164	23,607
Comprehensive income attributable to non-controlling	604	1,365
interests

Consolidated statements of changes in net assets

Fiscal year ended February 29, 2020

(Millions of yen)

			Shareholders' equity

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

Balance at beginning of	19,613	22,247	157,530	(25)	199,367
period

Changes during period

Dividends of surplus			(5,732)		(5,732)

Profit attributable to			19,953		19,953
owners of parent

Purchase of treasury				(2)	(2)
shares

Purchase of shares of		19			19
consolidated subsidiaries

Net changes in items
other than shareholders'
equity
Total changes during period	-	19	14,220	(2)	14,237

Balance at end of period	19,613	22,267	171,751	(27)	213,604


	Accumulated other comprehensive income	Non-controlling
				Total net assets
	Valuation difference on	Remeasurements of	Total accumulated other
	interests
	available-for-sale securities	defined benefit plans	comprehensive income

Balance at beginning of	737	(208)	529	11,649	211,546
period

Changes during period

Dividends of surplus					(5,732)

Profit attributable to					19,953
owners of parent

Purchase of treasury					(2)
shares

Purchase of shares of					19
consolidated subsidiaries

Net changes in items
other than shareholders'	15	195	211	269	480
equity
Total changes during period	15	195	211	269	14,717

Balance at end of period	753	(12)	741	11,918	226,264

Fiscal year ended February 28, 2021

(Millions of yen)

			Shareholders' equity

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

Balance at beginning of	19,613	22,267	171,751	(27)	213,604
period

Changes during period

Dividends of surplus			(5,732)		(5,732)

Profit attributable to			23,053		23,053
owners of parent

Purchase of treasury				(2)	(2)
shares

Purchase of shares of		278			278
consolidated subsidiaries

Net changes in items
other than shareholders'
equity
Total changes during	-	278	17,320	(2)	17,596
period

Balance at end of period	19,613	22,545	189,072	(30)	231,200


	Accumulated other comprehensive income	Non-controlling
				Total net assets
	Valuation difference on	Remeasurements of	Total accumulated other
	interests
	available-for-sale securities	defined benefit plans	comprehensive income

Balance at beginning of	753	(12)	741	11,918	226,264
period

Changes during period

Dividends of surplus					(5,732)

Profit attributable to					23,053
owners of parent

Purchase of treasury					(2)
shares

Purchase of shares of					278
consolidated subsidiaries

Net changes in items
other than shareholders'	418	135	553	996	1,550
equity
Total changes during	418	135	553	996	19,146
period

Balance at end of period	1,171	123	1,294	12,915	245,411

Consolidated statements of cash flows

			(Millions of yen)
		Year ended	Year ended
		February 29, 2020	February 28, 2021
Cash flows from operating activities
Profit before income taxes	29,845	34,852
Depreciation	16,164	15,872
Amortization of goodwill	785	737
Increase (decrease) in allowance for doubtful accounts	176	(106)
Interest and dividend income	(250)	(243)
Interest expenses	818	700
Share of loss (profit) of entities accounted for using equity	(9)	(84)
method

Subsidy income	(310)	(25)
Income from insurance	-	(412)
Loss (gain) on sales of non-current assets	(308)	(55)
Loss on retirement of non-current assets	333	121
Loss (gain) on sales of investment securities	(9)	(3,115)
Loss (gain) on valuation of investment securities	486	-
Impairment loss	1,146	1,641
Loss on store closings	419	38
Loss on changes in construction project	213	-
Loss related to infectious disease	-	2,074
Loss on disaster	-	222
Increase (decrease) in provision for loss on building	-	554
demolition

Decrease (increase) in trade receivables	(6,570)	3,895
Decrease (increase) in inventories	2,560	3,917
Increase (decrease) in trade payables	18,708	(2,610)
Increase (decrease) in retirement benefit liability	544	449
Other, net	1,938	904

Subtotal	66,683	59,328

Interest and dividends received	218	248
Interest paid	(812)	(742)
Subsidies received	1,040	115
Proceeds from insurance income	-	412
Payment of loss related to infectious disease	-	(1,888)
Payments associated with disaster loss	-	(104)
Income taxes (paid) refund	(9,448)	(9,049)

Net cash provided by (used in) operating activities	57,681	48,320
Cash flows from investing activities

Purchase of property, plant and equipment	(15,266)	(12,632)
Proceeds from sales of property, plant and equipment	864	1,835
Purchase of intangible assets	(1,330)	(1,289)
Purchase of investment securities	(476)	-
Proceeds from sales of investment securities	39	4,697
Payments for sales of shares of subsidiaries resulting in	(51)	-
change in scope of consolidation

Other, net	(472)	754
Net cash provided by (used in) investing activities	(16,693)	(6,633)

		(Millions of yen)
	Year ended	Year ended
	February 29, 2020	February 28, 2021
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	(24,046)	(705)
Proceeds from long-term borrowings	11,000	1,100
Repayments of long-term borrowings	(21,259)	(19,925)
Purchase of treasury shares	(2)	(2)
Dividends paid	(5,732)	(5,732)
Dividends paid to non-controlling interests	(34)	(34)
Payments from changes in ownership interests in subsidiaries	(27)	(56)
that do not result in change in scope of consolidation

Other, net	(40)	(5)

Net cash provided by (used in) financing activities	(40,142)	(25,361)

Net increase (decrease) in cash and cash equivalents	845	16,324

Cash and cash equivalents at beginning of period	8,136	8,982
Cash and cash equivalents at end of period	8,982	25,306

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Izumi Co. Ltd. published this content on 19 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 April 2021 00:01:06 UTC.

IZUMI CO., LTD.

Izumi : Summary of Consolidated Financial Results for the Year Ended February 28, 2021

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