TORIDOLL : Summary of Consolidated Financial Results For the Three Months ended June 30, 2020(IFRS)

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 Three Months ended June 30, 2020 (IFRS)

August 13, 2020

Company name: TORIDOLL Holdings Corporation

Stock exchange listing: Tokyo Stock Exchange

Stock code: 3397

URL: https://www.toridoll.com

Representative: Takaya Awata, President, Representative Director

Inquiries: Satoshi Yamaguchi, General Manager Finance Department

TEL: [phone]

Date of release of quarterly securities report: August 13, 2020

Starting date of dividend payments: -

Preparation of explanatory materials on quarterly financial results: Yes

Information meetings arranged related to quarterly financial results: No

(Amounts are rounded to the nearest million)

1. Consolidated Financial Results for the Three Months Ended June 30, 2020

(1) Consolidated Operating Results

(% figures denote year-on-year change)

Total trading

Business profit

Operating profit

Profit before tax

Profit for the

transactions

period

Millions

%

Millions

%

Millions

%

Millions

%

Millions

%

of yen

of yen

of yen

of yen

of yen

Three months ended

27,294

(30.4)

(4,193)

―

(3,550)

―

(3,922)

―

(2,602)

―

June 30, 2020

Three months ended

39,212

10.8

2,431

8.8

2,051

(8.4)

1,369

(39.2)

912

(42.4)

June 30, 2019

Profit for the period

Comprehensive income

Earnings per share

Earnings per share

attributable to owners

attributable to owners

attributable to owners of

for the period

of the parent

of the parent (basic)

the parent (diluted)

Millions of

%

Millions of

%

Yen

Yen

yen

yen

Three months ended

(2,614)

―

(3,140)

―

(31.43)

(31.43)

June 30, 2020

Three months ended

909

(42.4)

216

(90.2)

10.68

10.65

June 30, 2019

(Reference) EBITDA (*)

Three months ended June 30, 2020: ¥ 394 million (decreased 94.6% year-on-year basis)

Three months ended June 30, 2019: ¥ 7,277 million

Adjusted EBITDA

Three months ended June 30, 2020: ¥ 937 million (decreased 87.1% year-on-year basis)

Three months ended June 30, 2019: ¥ 7,292 million

(*) The Company discloses EBITDA as comparative information.

EBITDA = Operating Profit + Other Operating Expenses - Other Operating Income + Depreciation + Amortization

Adjusted EBITDA = EBITDA + Impairment Loss + Extraordinary Expenses

Note: With an effective date of April 1, 2020, the company performed a 2-for-1 stock split of its common stock. The company calculated "Earnings per share attributable to owners of the parent (basic)" and "Earnings per share attributable to owners of the parent (diluted)" assuming that the stock split was implemented with an effective date of April 1, 2019.

(2) Consolidated Financial Position

			Equity	Equity	Equity per
			share
			attributable to	attributable to
	Total assets	Total equity	attributable to
	owners of	owners of
			owners of
			parent	parent ratio
			parent
	Millions of yen	Millions of yen	Millions of yen	%	Yen
As of June 30, 2020	208,800	42,727	41,889	20.1	485.52
As of March 31, 2020	209,978	46,565	45,427	21.6	532.32

Note: With an effective date of April 1, 2020, the company performed a 2-for-1 stock split of its common stock. The company calculated "Equity per share attributable to owners of parent" assuming that the stock split was implemented with an effective date of April 1, 2019.

2. Dividends

					Annual dividend per share
		Q1	Q2		Q3	Year-end	Total
		Yen	Yen		Yen	Yen	Yen
Fiscal Year ended March 31, 2020		―	0.00		―	12.50	12.5
Fiscal Year ended March 31, 2021		―
Fiscal Year ending March 31, 2021					0.00		―	6.25		6.25
(Forecast)

Note: With an effective date of April 1, 2020, the company performed a 2-for-1 stock split of its common stock. For dividends for the years ended March 31, 2020, the above dividends paid show the actual amounts prior to the stock split. The dividend for the year ending March 31, 2021 (Forecast) reflects the stock split.

3. Consolidated Financial Result Forecasts for the Fiscal Year Ending March 31, 2021

Percentages indicate year-on-year changes

	Total trading		Business profit	Operating profit	Profit before tax	Profit for the
	transactions		period
	Millions of yen	%		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
1st half	60,700	(24.1)			(4,300)	―	(4,600)	―	(5,400)	―	(3,800)	―
Fiscal year	148,200	(5.3)			5,000	(43.7)	200	(95.4)	(1,400)	―	(800)	―
	Profit for the period		Earnings per share
	attributable to owners of	attributable to owners
	the parent		of the parent (basic)
	Millions of yen	%			Yen
1st half	(3,700)		―			(44.96)
Fiscal year		(700)		―			(12.24)

• Notes

1. Changes in significant subsidiaries during the period
   (changes in specified subsidiaries resulting in the change in scope consolidation): No
   New: －
   Excluded: －
2. Changes in accounting policies and accounting estimates
3. 1. Changes in accounting policies as required by IFRS: No
   2. Changes in accounting policies other than 1) above: Yes
   3. Changes in accounting estimates: No

(3) Number of shares outstanding (ordinary shares)

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

	As of June 30, 2020	87,145,352 shares
2)	As of March 31, 2020	87,143,352 shares
Number of treasury shares at the end of the period
	As of June 30, 2020	869,018 shares
3)	As of March 31, 2020	1,805,644 shares
Average number of shares during the period
	Three months ended June 30, 2020	86,239,221 shares
	Three months ended June 30, 2019	85,151,792 shares

Note: With an effective date of April 1, 2020, the company performed a 2-for-1 stock split of its common stock. The company calculated the above three numbers of shares assuming that the stock split was implemented with an effective date of April 1, 2019.

*Summary quarterly financial statements are not subject to quarterly review by a public certified accountant or an auditing firm.

• Appropriate use of financial results forecasts and other notes
  The forward-looking statements in this report are based upon various assumptions, including, without limitation, business forecasts, management's estimates, assumptions, and projections at the time of publication. These statements do not represent a promise or commitment by the Company to achieve these forecasts. Actual results may differ significantly from these forecasts due to a wide range of factors.

Condensed Quarterly Consolidated Financial Statements

Condensed Quarterly Consolidated Statements of Financial Position

			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Assets
Current assets
Cash and cash equivalents	25,801	20,751
Trade and other receivables	3,967	5,681
Inventories	836	819
Other current assets	1,931	1,844
Total current assets	32,536	29,095
Non-current assets
Property, plant and equipment	34,581	32,009
Right-of-use assets	78,773	82,452
Intangible assets and goodwill	40,257	39,835
Investments accounted for using the equity method	4,770	4,499
Other financial assets	14,698	15,023
Deferred tax assets	3,464	5,013
Other non-current assets	900	874
Total non-current assets	177,443	179,705
Total assets	209,978	208,800

- 1 -

			(Millions of yen)
		As of March 31, 2020	As of June 30, 2020
Liabilities
Current liabilities
Trade and other payables	10,855	10,364
Short-term loans payable	29	4,023
Current portion of long-term loans payable	12,424	12,249
Lease liabilities	13,625	15,183
Income taxes payable	794	843
Provisions	727	657
Other current liabilities	4,240	4,709
Total current liabilities	42,694	48,028
Non-current liabilities
Long-term loans payable	45,578	43,044
Lease liabilities	70,079	69,709
Provisions	2,807	3,132
Deferred tax liabilities	1,475	1,433
Other non-current liabilities	780	726
Total non-current liabilities	120,719	118,045
Total liabilities	163,414	166,073
Equity
Equity attributable to owners of the parent
Capital stock	4,159	4,161
Capital surplus	3,848	3,046
Other equity instruments	10,847	10,847
Retained earnings	29,503	26,162
Treasury shares	(2,124)	(1,025)
Other components of equity	(806)	(1,303)
Total equity attributable to owners of the parent	45,427	41,889
Non-controlling interests	1,138	838
Total equity	46,565	42,727
Total liabilities and equity
209,978	208,800

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Condensed Quarterly Consolidated Statements of Income

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Total trading transactions	39,212	27,294
Cost of sales	(10,376)	(7,129)
Gross profit	28,836	20,165
Selling, general and administrative expenses	(26,405)	(24,358)
Impairment loss	(12)	(543)
Other operating income	228	1,435
Other operating expenses	(596)	(249)
Operating profit (loss)
2,051	(3,550)
Finance income
55	48
Finance costs	(469)	(296)
Finance income (costs), net	(414)	(247)
Share of profit (loss) of investments accounted for using
(268)	(124)
the equity method
Profit (loss) before tax	1,369	(3,922)
Income tax expense	(457)	1,319
Profit (loss) for the period
912	(2,602)
Profit (loss) for the period attributable to
Owners of the parent	909	(2,614)
Non-controlling interests	2	12
Profit (loss) for the period	912	(2,602)
Earnings (losses) per share attributable to owners of the
parent (yen)
Basic earnings (losses) per share	10.68	(31.43)
Diluted earnings (losses) per share	10.65	(31.43)

- 3 -

Condensed Quarterly Consolidated Statements of Comprehensive Income

		(Millions of yen)
	Three months ended	Three months ended
	June 30, 2019	June 30, 2020
Profit (loss) for the period	912	(2,602)
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translating foreign	(762)	(367)
operations
Share of other comprehensive income of	67	(171)
investments accounted for using the equity method
Other comprehensive income	(695)	(538)
Comprehensive income for the period
216	(3,140)
Comprehensive income for the period attributable to
Owners of the parent	230	(3,134)
Non-controlling interests	(14)	(6)

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Condensed Quarterly Consolidated Statements of Changes in Equity

For the three months ended June 30, 2019

(Millions of yen)

				Equity attributable to owners of the parent
						Other components of equity		Non-
		Capital	Capital	Retained	Treasury	Exchange				controlling	Total equity
		differences	Subscription
			Total	interests
		stock	surplus	earnings	shares	on	rights to	Total
						translating
						shares
						foreign
						operations
As of April 1, 2019	4,076	4,085	28,477	(2,143)	(894)	378	(516)	33,979	1,024	35,003
Cumulative	effect of
changes in	accounting			(880)				－	(880)		(880)
policies
Restated balance	4,076	4,085	27,597	(2,143)	(894)	378	(516)	33,099	1,024	34,123
Profit for the period			909				－	909	2	912
Other comprehensive					(679)		(679)	(679)	(16)	(695)
income
Total comprehensive	－	－	909	－	(679)	－	(679)	230	(14)	216
income for the period
Issuance of new shares
(exercise of subscription	29	29				(19)	(19)	39		39
rights)
Share-based payment	0					27	27	28		28
transactions
Purchase and disposal of				12			－	12		12
treasury shares
Dividends				(64)				－	(64)		(64)
Other			(11)					－	(11)		(11)
Total transaction	30	19	(64)	12	－	8	8	4	－	4
amount with owners
Transfer to retained
earnings from other			10			(10)	(10)	－		－
components of equity
As of June 30, 2019	4,106	4,104	28,452	(2,131)	(1,573)	376	(1,197)	33,334	1,009	34,343

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For the three months ended June 30, 2020

(Millions of yen)

			Equity attributable to owners of the parent
						Other components of equity		Non-
	Capital	Capital				Exchange				controlling	Total equity
	Other equity	Retained	Treasury	differences
	Subscription		Total	interests
	stock	surplus	instruments	earnings	shares	on	rights to	Total
						translating
						shares
						foreign
						operations
As of April 1, 2020	4,159	3,848	10,847	29,503	(2,124)	(1,224)	418	(806)	45,427	1,138	46,565
Profit (loss) for the				(2,614)				－	(2,614)	12	(2,602)
period
Other comprehensive						(520)		(520)	(520)	(17)	(538)
income
Total comprehensive	－	－	－	(2,614)	－	(520)	－	(520)	(3,134)	(6)	(3,140)
income for the period
Issuance of new shares
(exercise of subscription	1	1					(0)	(0)	2		2
rights)
Share-based payment	0	0					24	24	25		25
transactions
Purchase and disposal of		(0)			1,100			－	1,100		1,100
treasury shares
Dividends				(533)				－	(533)		(533)
Distribution to owners of				(194)				－	(194)		(194)
other equity instruments
Change in ownership
interests in subsidiaries		(804)						－	(804)	(294)	(1,097)
without loss of control
Total transaction	2	(802)	－	(727)	1,100	－	23	23	(404)	(294)	(697)
amount with owners
As of June 30, 2020	4,161	3,046	10,847	26,162	(1,025)	(1,744)	442	(1,303)	41,889	838	42,727

- 6 -

Condensed Quarterly Consolidated Statements of Cash Flows

			(Millions of yen)
		Three months ended	Three months ended
		June 30, 2019	June 30, 2020
Cash flows from operating activities
Profit (loss) before tax	1,369	(3,922)
Depreciation and amortization	4,858	5,130
Impairment loss	12	543
Interest income	(55)	(48)
Interest expenses	262	257
Share of loss (profit) of investments accounted for using	268	124
the equity method
Decrease (increase) in trade and other receivables	(359)	(1,251)
Decrease (increase) in inventories	(152)	14
Increase (decrease) in trade and other payables	1,083	408
Other, net	473	36
Subtotal
7,759	1,293
Interest income received
30	94
Interest expenses paid	(184)	(259)
Income taxes paid	(464)	(163)
Net cash provided by (used in) operating activities
7,141	965
Cash flows from investing activities
Purchase of property, plant and equipment	(2,894)	(2,733)
Purchase of intangible assets	(75)	(2)
Payments for lease and guarantee deposits	(152)	(112)
Proceeds from collection of lease and guarantee deposits	153	106
Payments of construction assistance fund receivables	(99)	(79)
Collection of construction assistance fund receivables	141	124
Other, net	(398)	(201)
Net cash provided by (used in) investing activities	(3,324)	(2,897)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable	(35)	3,994
Proceeds from long-term loans payable	11,122	321
Repayments of long-term loans payable	(2,779)	(3,030)
Repayments of lease liabilities	(3,169)	(3,651)
Cash dividends paid	(64)	(533)
Distribution to owners of other equity instruments	－	(279)
Other, net	16	2
Net cash provided by (used in) financing activities
5,091	(3,177)
Net increase (decrease) in cash and cash equivalents	8,908	(5,108)
Cash and cash equivalents at beginning of period	14,398	25,801
Effect of exchange rate change on cash and cash
(145)	59
equivalents
Cash and cash equivalents at end of period	23,160	20,751

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