Summary Report of Consolidated Financial Results
For the Six Months Ended 31 December, 2014

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Don Quijote Holdings Co., Ltd.
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Koji Oohara, President and COO
Contact:
Mitsuo Takahashi, Senior Managing Director (Phone: +81-3-5725-7588)
URL:
http://www.donki-hd.co.jp(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the six months ended 31 December, 2014
(1) Consolidated Results(Millions of yen, except per-share data)
Operating
Ordinary
ChangeNet Sales
Change (%)
Change (%)
IncomeIncome(%)
Six Months Ended
342,224
12.8
23,411
14.2
24,04413.8
December 31, 2014
Six Months Ended
303,322
4.7
20,5049.8
21,135
10.8
December 31, 2013
(Note) Comprehensive income: 16,811 million yen [18.0%] (FY 2015.6 2Q), 14,249 million yen [18.3%] (FY 2014.6 2Q)

Net Income
Six Months Ended
December 31, 2014
Six Months Ended
December 31, 2013

Change (%)

Net Income
Per Share (Yen)Net Income Per
Share-fully
diluted (Yen)

13,6945.1

174.41173.7313,024

10.6

166.94165.84(2) Financial Position(Millions of yen, except per-share data)

Ratio of Shareholders’Equityto Total Assets (%)
As of December 31, 2014
489,466
208,282
41.1
June 30, 2014
432,135
193,164
43.4(Reference) Equity: 201,147 million yen (as of December 31, 2014), 187,345 million yen (as of June 30, 2014)
Total Assets

Net assets

2. Dividends
Yen
Three Months Ended
September 30

Six Months Ended
December 31

Nine Months
Ended March 31

Year Ended June 30,
－
－
10.00
2014
Year Ending June 30,
－
10.00
2015
Year Ending June 30,－
2015 (Forecast)(Note) Revision to the dividend forecast in the second quarter of fiscal 2015: None

Year Ended June
30

Total

26.00

36.00

26.00

36.00

3. Consolidated Business Forecast： For the year ending June 30, 2015 (From July 1, 2014 to June 30, 2015)(Millions of yen, except per-share data)

Year Ending
June 30, 2015
(Note)Net

ChangeOperating

ChangeOrdinary

ChangeNet

ChangeSales(%)

Income(%)

Income(%)

Income(%)

658,000

7.4

36,500

6.4

37,500

Revision to the business forecast in the second quarter of fiscal 2015: Yes

5.7

21,8001.5

Net Income
per Share(Yen)

278.09

4. Others(1) Significant changes in the scope of consolidation: None
(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: None
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: None
② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury stock included)
December 31, 2014: 78,691,280 shares
June 30, 2014:
78,393,980 shares② Number of treasury stock
December 31, 2014: 1,244 shares
June 30, 2014:
1,244 shares③ Average number of outstanding shares during the period
Six months ended December 31, 2014: 78,513,696 shares
Six months ended December 31, 2013: 78,016,547 shares※Implementation Status of Financial Audit
This financial summary is not subject to quarterly review under the Financial Instrument and Exchange Act.
Quarterly review procedures for the consolidated financial statements are being conducted at the time of theannouncement of this financial summary.

※Explanation regarding the appropriate use of forecasts of business results

The future business result forecasts included in the financial statements are based on the information available to thecompany at the time of the announcement and on certain assumptions considered reasonable. Thus, we do not makeany representation as to their achievability and undertake any obligation of their updates as a result of new
information. Actual results may differ widely from the forecasts for a variety of reasons, including changes in
economic environments related to our business, market trends and exchange rates.

<Contents>
1.

Summary Information Regarding Financial Results for the Six Months Ended 31 December, 2014 ----------------- P. 4
(1) Summary Information Regarding Consolidated Business Results -------------------------------------------------------- P. 4
(2) Summary Information Regarding Consolidated Financial Position ------------------------------------------------------ P. 5
(3) Summary Information Regarding Consolidated Projections ---------------------------------------------------------------- P. 6

2.

Consolidated Financial Statements for the Six Months Ended 31 December, 2014 ---------------------------------------- P. 7
(1) Balance Sheets for the Six Months Ended 31 December, 2014-------------------------------------------------------------- P. 7
(2) Statements of Income and Statements of Comprehensive Income -------------------------------------------------------- P. 9
Statements of Income for the Six Months ----------------------------------------------------------------------------------------- P. 9
Statements of Comprehensive Income for the Six Months ----------------------------------------------------------------- P. 10(3) Statements of Cash Flows for the Six Months Ended 31 December, 2014 --------------------------------------------- P. 11(4) Notes to Consolidated Financial Statements for the Six Months Ended 31 December, 2014 -------------------- P. 13
Notes Relating to Going Concern Assumptions -------------------------------------------------------------------------------- P. 13
Notes Concerning Significant Changes in Stockholders’ Equity ---------------------------------------------------------- P. 13
Segment Information ------------------------------------------------------------------------------------------------------------------ P. 13

1.

Financial Results for the Six Months Ended 31 December, 2014

(1) Consolidated Business Results
During the six-months period ended December, 2014 covered by this report (1 July, 2014 to 31 December, 2014), theJapanese government revised its economic growth outlook for the domestic economy in 2014 downward from an initial
positive rate to about -0.5%, dropped to the negative level first time in the past five years (since the Lehman Shock in 2008),
contrary to previous expectations for a moderate recovery spurred by various policy efforts (known as “Abenomics”).
Uncertainty remains strong for personal consumption behavior because of weaker consumer motivation after the
consumption tax hike implemented in April 2014, higher consumer prices driven by yen depreciation, current decline inreal disposable income, and other divers factors. Additionally, customers are becoming increasingly sensitive to prices fordaily necessities, such as food items and daily consumables.
The retail industry now goes through an era of increasing disparity between retailers, where mind of “flexible andadaptable to changes” is required to respond promptly to customer frugality, an economically wise consumption behavior in
the current harsh environment, and having the ability to set prices at levels that customers find attractive.
Though in such severe circumstances, with our strong point represented by the mind of “flexible and adaptable to changes”
based on front-line business power, an essential element that would enable us to fully differentiate our company to therivals, the Don Quijote Group has adopted an aggressive management approach performed by active and enhanced sales
strategies.
In other words, by transferring major decision-making authority to the business front-line, a unique culture of the Don
Quijote Group, we have revised the product mix and taken fine-tuned price strategies at each store in order to respondproperly to customers’ behavior and requirements regionally different. These efforts allowed us to strengthen and enrich
the lineup of daily necessities, to secure price advantages in commercial area and thereby to improve support from
customers. Our management considers that our dynamism to launch into price strategy let us make the most of the Group’s
highly efficient and powerful business resources to compete in retail market after the consumption tax hike when rivals
remained hesitant to adopt price strategy. This dynamism is the exact reason of the Group’s success in gaining market
share from rivals and winning support from customers.
Besides these company’s robust fundamentals, a result of the Group’s steadfast efforts since 2008 to attract foreign tourists’interest, ahead of other retailers, is making a substantial contribution to the Group’s business performance in the context
of increase in total number of inbound tourists by around 30% year-on-year accompanied by the government’s initiatives toboost foreign tourists volume in recent years. Furthermore, the revised consumption tax exemption (tax-free) program thattook effect on 1 October, 2014 expanded the tax-exemption items to almost all products. In order to accommodate to thisderegulation, the Don Quijote Group enhanced sales support for foreign tourists, such as an installation of “Welcome Desk”,
a call center for foreign tourists, tax-exemption counters and placement of “Welcome Crew” staff at stores to interact withforeign tourists. As a result, since October, 2014, the vigorous demand of foreign tourists contributes and provides a
tailwind for the business performance.
The Don Quijote Group’s original electronic money card “majica”, introduced in March 2014, has been recording a steadyincrease in number of subscribing members and transaction sales volume beyond initial expectations and also contributing
to improve average sales per customer. The majica membership exceeded two million as of the end of December 2014.
During the six-month period ended December, 2014, the Don Quijote Group opened 15 new stores in Japan – one in the
Tohoku region (Yamagata－MEGA Don Quijote Lepark Mikawa), nine in the Kanto region (Tokyo－Don Quijote Kōrakuen,
Don Quijote Tama Mizuho, KYŌYASUDŌ Mejiro, KYŌYASUDŌ Umejima-Ekimae, Kanagawa － Don Quijote SING
Hashimoto-Ekimae, Don Quijote Isezakicho, MEGA Don Quijote Shin-Yokohama, Town-Doit Shin Yokohama, and Chiba－
Don Quijote Asahi), three in the Chubu region (Shizuoka－Don Quijote Shizuoka Matsudomi, Aichi－Don Quijote Nagoya
Sakae, and MEGA Don Quijote Kasugai), and two in the Kinki region (Osaka－MEGA Don Quijote Ibaraki and MEGA Don

Quijote Fukaebashi).
On the other hand, The Don Quijote Group closed temporarily two stores for remodeling (Don Quijote Minoh, Don Quijote
Koganei Koen). It also closed two stores because of moves (Don Quijote Mizuho, Picasso Isezakicho) and three stores toimprove business efficiency (Don Quijote Futtsu, Don Quijote Shinonome, and Home Center Koigakubo). As a result, thenumber of Group’s stores attained 291 at the end of December, 2014 (while 283 stores at the end of June 2014).
The following is an overview of the consolidated results for the six-month period ended December, 2014.
(millions of yen)
Year-on-YearJul.- Dec. 2014

Jul.- Dec. 2013

Net sales

342,224

303,322

38,902

12.8

Operating income

23,411

20,504

2,907

14.2

Ordinary income

24,044

21,135

2,909

13.8

Net income

13,694

13,024670

5.1

change(%)

The profit has reached the highest-ever level for the six-month period.
Segment income results are reviewed as follows.
1)

The retail segment recorded 330,361 million yen in sales and 14,954 million yen in operating income. Sales of theexisting stores of the Group’s main line category, Don Quijote, increased by 4.6% year on year, marked a satisfactory
figure. MEGA Don Quijote and New MEGA Don Quijote stores, a category intended for families, also continue to growat a solid pace owing to a success in sales strategies for daily necessities and in taking market share away from rival
retailers.

2)

The tenant leasing segment recorded 8,972 million yen in sales and 6,041 million yen in operating income. Japan Asset
Marketing Co., Ltd. and Japan Commercial Establishment Co., Ltd. are the main entities in this segment. Income
expanded at a steady pace accompanied by the increase in number of retail segment’s stores.

3)

The other businesses segment recorded 2,891 million yen in sales and 2,604 million yen in operating income, due to an
expansion in business of Financial services provider Accretive Co., Ltd., and other entities.

The medium-to-long term strategy aims to create stores that would gain support from customers and to increase thenumber of customers visiting the stores by reinforcing the Group’s differentiating attributes (Convenience, Discount, andAmusement) as a concept-creating business enterprise with an unyielding corporate principle of “highest priority given to
the customers’ satisfaction” and implementing various operating initiatives.
The Group is striving to achieve a goal of 15% return on equity (ROE) and intends to realize sustainable growth over the
longer term with sales and gross profit gains driven by further support from customers.
(2) Consolidated Financial Position(Millions of yen)
As of June 30, 2014

As of December 31, 2014

ChangeTotal assets

432,135

489,466

57,331

Total liabilities

238,971

281,184

42,213

Net assets

193,164

208,282

15,1181.

Assets, liabilities, and net assets

At the end of the second quarter of the consolidated accounting period (December 31, 2014), total assets increased by 57,331
million yen, compared to the end of the previous consolidated fiscal year (June 30, 2014), to 489,466 million yen. The mainchanges were gains of 32,075 million yen by tangible fixed assets, 13,264 million yen by merchandise and a decline of 3,205
million yen by cash and deposits.
Liabilities increased by 42,213 million yen, compared to the end of the previous consolidated fiscal year, to 281,184 million
yen. The main changes were gains of 18,217 million yen by accounts payable, 12,527 million by loans payable, and 4,410

million yen by bonds payable. Net assets increased by 15,118 million yen, compared to the end of the previous consolidated
fiscal year, to 208,282 million yen.
2.

Cash flow

Net cash provided by operating activities totaled 23,651 million yen based on additions from net profit, depreciation costs,
and an increase in accounts payable and reductions from an increase in inventories and income taxes paid.
Net cash used in investing activities totaled 29,558 million yen due to payments for the acquisition of tangible fixed assets
and other items.
Net cash provided by financing activities totaled 5,248 million yen based on additions from proceeds from issuance of bonds
and proceeds from fluidity of receivables and reductions of repayment of loans and cash dividends paid.
Cash and cash equivalents at the end of the second quarter of the consolidated accounting period amounted to 43,901
million yen.
(3) Qualitative Information Concerning Consolidated Business Results Projection
The following adjustments were made concerning the business results projection for the fiscal year ending June 30, 2015 inconsideration of the business results for the six months period ended 31 December 2014, released on 18 August, 2014.
Fiscal year beginning on July 1, 2014 and ending June 30, 2015
Net sales
Previous forecast (A)634,000

Operatingincome34,800

Revised forecast (B)658,000

Difference (B-A)
Change (%)
Previous results(Millions of yen, except per-share data)
Ordinary
incomeNet income

Net Income Per
Share (Yen)

35,60021,500274.2636,50037,50021,800278.0924,000

1,700

1,900

300

－

3.8

4.9

5.3

1.4

－

612,424

34,29235,487

21,471

274.68

The Don Quijote Group faces various risks and uncertainties as part of conducting business. The economic environment,
market trends, and other external conditions for Don Quijote and Don Quijote Group businesses hence are importantfactors capable of affecting actual income results.

Consolidated Quarterly Balance Sheets(Millions of yen)
As of December 31,

As of June 30,

2014

2014

AmountAmountAssetsCurrent assets
Cash and deposits

39,48542,690Notes and Accounts receivable-trade

8,290

5,730

Purchased receivables

5,805

6,009

Merchandise

102,369

89,105

Other

21,016

15,341(39)(41)

176,926

158,834

Buildings and structures, net

89,244

77,078Tools, furniture and fixtures, net

13,031

12,451

Land

140,193

119,680

2,330

3,514

244,798

212,723

Goodwill

7,415

6,332

Other

9,777

9,024

Total intangible assets

17,192

15,356

Investment securities

6,281

4,414

Lease and guarantee deposits

31,92930,963Other

14,104

11,596

Allowance for doubtful accounts(1,764)(1,751)

Total investments and other assets

50,55045,222

312,540

273,301

489,466

432,135

Allowance for doubtful accounts
Total current assets

Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets

Total assets

(Millions of yen)
As of December 31,

As of June 30,

2014

2014

AmountAmountLiabilities
Current liabilities
Accounts payable-trade73,335

Short-term loans payable

16,9982,197

Current portion of long-term loans payable

7,709

11,607

Current portion of bonds

6,840

6,140

Payables under fluidity lease receivables

6,987

5,912

Income taxes payable

7,497

7,883

724

413

Provision for point card certificates

55,118Other

24,63325,174

Total current liabilities

144,723

114,444

Bonds payable

48,01044,300Long-term loans payable

31,65430,030Long-term payables under fluidity lease receivables

37,55634,345

Non-current liabilities

Provision for directors' retirement benefits
Asset retirement obligations
Negative goodwill

－

360

3,470

3,285

569

622

Other

15,202

11,585

Total non-current liabilities

136,461

124,527

281,184

238,971

21,814

21,366

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

24,617

24,169Retained earnings

153,760

142,105(3)(3)

200,188

187,637

Valuation difference on available-for-sale securities

512

472

Foreign currency translation adjustment

447

(764)

Total accumulated other comprehensive income

959

(292)

7,135

5,819

208,282

193,164

489,466

432,135

Treasury shares
Total shareholders' equity

Accumulated other comprehensive income

Minority interests

Total net assets
Total liabilities and net assets

Consolidated Quarterly Statements of Income
Six months ended
December 31, 2014

(Millions of yen)Six months ended
December 31, 2013

AmountAmountNet sales

342,224

303,322

Cost of sales

250,590

222,247

91,634

81,07568,22360,571

23,411

20,504

Interest and dividends income

292

212

Amortization of negative goodwill

52

249

Other

1,238

972

Total non-operating income

1,582

1,433

Interest expenses

421

582

Cost of claim’s liquidation

335

29

Other

193

191

Total non-operating expenses

949

802

24,044

21,135Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of non-current assets

0

212

168

－

1

46

169

258

Loss on sales of fixed asset

367－

Loss on retirement of non-current assets

51

209

Loss on closing of stores

389

204

Other

108

55

Total extraordinary losses

915

468

23,29820,925

8,141

7,559

Gain on negative goodwill
Other
Total extraordinary income
Extraordinary loss

Income before income taxes and minority interests
Income taxes - Current
Income taxes - Deferred

(402)

(380)

Total income taxes

7,739

7,179

Income before minority interests

15,55913,746

Minority interests in income

1,865

722

Net income

13,694

13,024

Consolidated Quarterly Statements of Comprehensive Income(Millions of yen)

Income before minority interests

Six months ended

Six months ended

December 31, 2014

December 31, 2013

AmountAmount15,55913,74644

34

Foreign currency translation adjustment

1,208

469

Total other comprehensive income

1,252

503

16,811

14,24914,945

13,523

1,866

726

Other comprehensive income
Valuation difference on available-for-sale securities

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

Consolidated Quarterly Statements of Cash FlowsSix months ended
December 31, 2014
AmountNet cash provided by (used in) operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Amortization of negative goodwill
Gain on negative goodwill
Increase (decrease) in provisionInterest and dividends income
Interest expenses
Increase in notes and accounts receivable-trade
Increase in inventories
Increase in notes and accounts payable-trade
Other, net
Sub totalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Surcharge paid
Net cash provided by operating activities(Millions of yen)Six months ended
December 31, 2013
Amount23,298
5,985
(52)
(168)
(146)
(292)
421
(1,979)(12,561)
17,511389
32,406223(442)(8,983)556(109)
23,651

20,925
5,213
(249)
－
6
(212)
582
(723)
(5,511)
14,152(4,400)29,783156(651)(6,664)－－
22,624538(24,865)233(274)(1,531)444(1,509)－－(12,963)
1,938(1,736)
(743)
197
(498)
423

(1,581)(2,491)

Net cash provided by (used in) investing activities:
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payment for store opening in progress
Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting in change in scopeof consolidation
Proceeds from purchase of investments in subsidiaries resulting inchange in scope of consolidation
Payments of loans receivable
Other, net
Net cash used in investing activities(103)(1,623)(29,558)(1,079)288(16,664)

Net cash provided by (used in) financing activities:
Net increase in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Redemption of convertible bonds
Proceeds from fluidity of lease receivables
Repayments of payables under fluidity lease receivables
Proceeds from issuance of common stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by financing activities

14,776
1,400(17,443)
7,888(3,590)－7,461(3,539)896(2,038)
(552)
(11)
5,248

39
10,000(18,663)
1,960(4,340)(350)
30,869(372)
907(1,791)(552)(71)
17,636713－

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Six months ended
December 31, 2014
Amount455(204)
44,10543,901(Millions of yen)Six months ended
December 31, 2013
Amount308
23,90436,13260,036

(4) Notes to consolidated financial statements:(Notes to assumption of going concern)
Not applicable(Notes to significant change in balance of stockholders’ equity)
Not applicable

Segment Information
For the six months ended December 31, 2013
1. Information concerning net sales and income or loss by reporting segment is as follow:(Millions of yen)
Reporting segment
RetailbusinessRentbusiness

Sub Total

Others(Note 1)

292,323

8,348

300,671

2,651

303,322－

303,322

3

2,043

2,046

1,409

3,455

(3,455)－

Total

292,326

10,391

302,717

4,060

306,777(3,455)

303,322

Segment income

17,0552,539

19,594

1,280

20,874(370)

20,504

Total

Adjustment Consolidated(Note 2)
(Note 3)

Sales, Segment income
Net sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes real estate business, marketing business and financial service business thatare not included in other reporting segments.
2. The ¥ (370) million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in goodwill)In the retail segment, the increase of goodwill resulting from the acquisition of MARUKAI CORPORATION was ¥1,516
million in the six months ended December 31, 2013.
The amount of goodwill is provisionally recognized based on reasonable information available at that point of time.
(Significant gain on negative goodwill)
Not applicableFor the six months ended December 31, 2014
1. Information concerning net sales and income or loss by reporting segment is as follow:(Millions of yen)
Reporting segment
RetailBusinessRentbusiness

Sub Total

Others(Note 1)

330,361

8,972

339,333

2,891

342,224－

342,224

－

7,373

7,373

2,959

10,332(10,332)－

Total

330,361

16,345

346,706

5,850

352,556(10,332)

342,224

Segment income

14,954

6,041

20,9952,604

23,599(188)

23,411

Total

Adjustment Consolidated(Note 2)
(Note 3)

Sales, Segment income
Net sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes real estate business, marketing business, and financial service business thatare not included in other reporting segments.
2. The ¥ (188) million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
4. In the fourth quarter of the fiscal year ended June 30, 2014, a change in the business positioning of some consolidated
subsidiaries within the Don Quijote Group resulted in reclassification of their reporting segment from the Others
segment to the Rent Business segment. Based on these changes, segment amounts for the fiscal year ended June 30,
2014 have been adjusted to reflect updated segment coverage.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in goodwill)
Information is omitted since it is immaterial.
(Significant gain on negative goodwill)
Information is omitted since it is immaterial.