Summary Report of Consolidated Financial Results
For the Six Months Ended December 31, 2017

(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:
Kohji Oohara, President and CEO
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, 2017
(1) Results of Business Operations(Millions of yen, except per-share data)
OperatingOrdinary
Net Sales
Change (%)
Change (%)
Change (%)
IncomeIncomeSix Months Ended
462,830
10.8
29,24711.0
31,05815.3
December 31, 2017
Six Months Ended
417,694
8.6
26,3433.0
26,9284.1
December 31, 2016
(Note) Comprehensive income: 20,851 million yen [10.2%] (FY 2018.6 2Q), 18,922 million yen [16.9%] (FY 2017.6 2Q)
ProfitAttributable toOwners of Parent
Six Months Ended
December 31, 2017
Six Months Ended
December 31, 2016

Change (%)

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

18,67813.5

118.08117.93

16,45915.6

104.09104.05(2) Financial Position(Millions of yen, except per-share data)
Total Assets

Ratio of Shareholders’ Equity
to Total Assets (%)

Net assets

As of December 31,
782,137
296,89735.3
2017
June 30, 2017
642,868
279,930
40.3(Reference) Equity: 276,109 million yen (as of December 31, 2017), 259,053 million yen (as of June 30, 2017)
2. Dividends
Three Months Ended
September 30
Year Ended June 30,
2017Year Ending June 30,
2018Year Ending June 30,2018 (Forecast)

Six Months Ended
December 31

－

5.00

－

5.00

Yen
Nine Months
Ended March 31

Year Ended June30

Total－

21.00

26.00

－

22.00

27.00

(Note) Revision to the dividend forecast in the second quarter of fiscal 2018: None
3. Consolidated Business Forecast：For the year ending June 30, 2018 (From July 1, 2017 to June 30, 2018)(Millions of yen, except per-share data)
ProfitNet

ChangeOperating

ChangeSales(%)

Income(%)

Ordinary
IncomeChangeAttributable toChange(%)

Owners of(%)

ParentYear Ending
June 30, 2018
(Note)

920,000

11.0

51,00010.4

53,800

18.2

Revision to the business forecast in the second quarter of fiscal 2018: Yes

132,200△2.7

Net Incomeper Share(Yen)
203.55

4. Others(1) Significant changes in the scope of consolidation: None
Newly consolidated: － Excluded:－(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, 2017
158,193,160 shares
June 30, 2017
158,178,760 shares② Number of treasury stock
December 31, 2017
4,633 shares
June 30, 2017
4,633 shares③ Average number of outstanding shares during the period
December 31, 2017
158,183,447 shares
December 31, 2016158,129,763 shares※This financial summary is not subject to quarterly reviews.
※Explanation regarding the appropriate use of forecasts of business results
The financial forecasts of business results are based on judgments and estimates that have been made using
currently available information. By nature, such financial forecasts are subject to uncertainties and risks. Therefore,
actual results might be significantly different from the aforementioned forecasts for a variety of reasons, includingchanges in economic environments related to our business, market trends and exchange rates.
※The Company plans to hold financial results briefing for securities analysts and institutional investors on February 6,
2018. Presentation materials will be available on the Company’s website.

2

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

As of June 30,

2017

2017

AmountAmountAssets
Current assets
Cash and deposits¥51,677¥76,340

Notes and Accounts receivable-trade

13,2608,966

Merchandise

145,140

123,969

Other

30,531

18,328(45)(18)

240,563

227,585

Buildings and structures, net

125,130

118,623

Tools, furniture and fixtures, net

19,30517,249

Land

174,090

171,018

4,540

3,876

323,065

310,766

Goodwill

18,982

5,363

Other

10,622

10,525

Total intangible assets

29,604

15,888Investment securities

29,187

7,539

Long-term loans receivable

100,938

23,171

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

Lease and guarantee deposits

45,02240,474Other

15,453

19,146

Allowance for doubtful accounts(1,695)(1,701)

Total investments and other assets

188,905

88,629Total non-current assets

Total assets

3541,574

415,283¥782,137¥642,868

(Millions of yen)
As of December 31,

As of June 30,

2017

2017

AmountAmountLiabilities
Current liabilities
Accounts payable-trade¥116,783¥85,661

Short-term loans payable

8,287

285

Current portion of long-term loans payable

5,019

5,421

Current portion of bonds

3,816

19,316

Payables under fluidity lease receivables

7,207

7,152

Income taxes payable

9,746

9,128

Provision for point card certificates

1,697

1,691

Other36,977

36,171

Total current liabilities

189,532

164,825

Bonds payable

72,98274,890Long-term loans payable

187,069

84,638Long-term payables under fluidity lease receivables

15,74919,366

Asset retirement obligations

6,310

6,000

310

353

Non-current liabilities

Negative goodwill
Other

13,28812,866

Total non-current liabilities

295,708

198,113

485,240

362,938

22,43622,425

Total liabilities

Net assets
Shareholders' equity
Capital stock
Capital surplus

19,975

19,425Retained earnings

232,004

216,446

(14)

(14)

274,401

258,282541

326

Foreign currency translation adjustment

1,167

445

Total accumulated other comprehensive income

1,708

771

98

98

20,69020,779Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Subscription rights to shares
Non-controlling interests
Total net assets

Total liabilities and net assets

4

296,897

279,930¥782,137¥642,868

Consolidated Quarterly Statements of Income

Net sales

Six months ended
December 31, 2017

(Millions of yen)Six months ended
December 31, 2016

AmountAmount¥462,830¥417,694

342,654

307,054

120,176

110,640

90,92984,297

29,247

26,343

Interest and dividend income

607

442

Gain on valuation of derivatives－539

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Amortization of negative goodwill

4343

Equity in earnings of affiliates

1,698

－

Other

1,528

1,135

Total non-operating income

3,876

2,159

Interest expenses

1,417

551

Bond issuance cost－

151

Cost of claim's liquidation

204

270

Foreign exchange losses－

466

Other

444

136

2,0651,574

31,05826,928Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets

8845

Gain on sales of investment securities

－215

Other

2254

Total extraordinary income

110

314

Loss on retirement of non-current assets

9498

Loss on closing of stores

116

143

Other

1467

Extraordinary losses

224

308

Profit before income taxes

Total extraordinary losses

30,94426,934

Income taxes - Current

10,906

9,568

Income taxes - Deferred123(2,085)

11,029

7,483

ProfitTotal income taxes19,915

19,451

Profit attributable to non-controlling interests

1,237

2,992

¥18,678¥16,459

Profit attributable to owners of parent

5Consolidated Quarterly Statements of Comprehensive Income(Millions of yen)

ProfitSix months ended

Six months ended

December 31, 2017

December 31, 2016

AmountAmount¥19,915¥19,451

Valuation difference on available-for-sale securities

212

292

Foreign currency translation adjustment

722

(821)

2－936(529)Comprehensive income¥20,851¥18,922

Comprehensive income attributable toComprehensive income attributable to owners of parent¥19,614¥15,938

1,237

2,984

Other comprehensive income

Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income

Comprehensive income attributable tonon-controlling interests

6Consolidated Quarterly Statements of Cash FlowsSix months ended
December 31, 2017
Amount(Millions of yen)Six months ended
December 31, 2016
AmountCash flows from operating activities:
Profit before income taxes
Depreciation
Amortization of negative goodwill¥30,944¥26,934

7,801

7,739

(43)

(43)

Increase (decrease) in provision31(211)

Interest and dividend income

(607)

(442)

Interest expenses

1,417

551

Gain on sales of investment securities－(215)

Equity in earnings of affiliates(1,698)－

Increase in notes and accounts receivable - trade(4,206)(4,971)

Increase in inventories(18,248)(5,532)

Increase in notes and accounts payable - trade28,10817,982Other, net

138

4,141

Subtotal

43,63745,933

Interest and dividend income received

343

314

Interest expenses paid

(942)

(559)

(11,310)(7,154)30

1,203

31,75839,737

Income taxes paid
Income taxes refund
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment(18,426)(18,314)

Proceeds from sales of property, plant and equipment

315

1,288

Purchase of intangible assets

(338)

(441)

(1,616)(1,738)

54

183

(346)

(390)

－

1,118

(16,283)－

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 shares of subsidiaries resulting in change
in scope of consolidation
Purchase of shares of subsidiaries and affiliates(19,976)(423)

Payments of loans receivable(77,650)(22,536)

334

(52)

(133,932)(41,305)

Net increase in short-term loans payable

8,000

1,249

Proceeds from long-term loans payable

105,000

44,023

Repayment of long-term loans payable(3,137)(13,996)－8,349

Redemption of bonds(17,408)(10,593)

Repayments of payables under fluidity lease receivables(3,757)(4,228)2350(3,322)(2,688)Other, net
Net cash used in investing activities
Cash flows from financing activities:

Proceeds from issuance of bonds

Proceeds from issuance of common shares
Cash dividends paid
7

Cash dividends paid to non-controlling interests

(788)

(583)

Other, net(31)(11)

84,58021,572535(491)

Net increase (decrease) in cash and cash equivalents(17,059)

19,513

Cash and cash equivalents at beginning of period

78,09444,496－103－

49¥61,035¥64,161

Net cash provided by financing activities
Effect of exchange rate change on cash and cash equivalents

Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Increase in cash and equivalents resulting
from change of accounting period of consolidated subsidiaries
Cash and cash equivalents at end of period

Segment Information
For the six months ended December 31, 2017
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
Sub Total

Others(Note 1)

Total

¥10,686¥459,477¥3,353¥462,830¥－¥462,830

427

10,637

11,064

4,522

15,586(15,586)－Total449,218

21,323

470,541

7,875

478,416(15,586)

462,830

Segment income¥17,495¥8,834¥26,329¥2,858¥29,187¥60¥29,247

Retailbusiness

Rentbusiness¥448,791

Adjustment Consolidated(Note 2)
(Note 3)

Sales, Segment income
Sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes the services of real estate business and marketing business that are notincluded in other reporting segments.
2. The ¥ 60 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 business segment, the increase of goodwill resulting from the acquisition of all shares of QSI, Inc. was¥13,794 million during the first quarter of the current fiscal year. The amount of goodwill had been calculated
tentatively because the distribution of acquisition cost was not completed. The distribution was finalized in the second
quarter under review. There is no revision to the goodwill value.
(Significant gain on negative goodwill)
Not applicable
For the six months ended December 31, 2016
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
Retailbusiness

Rentbusiness

Sub Total

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)¥403,716¥10,349¥414,065¥3,629¥417,694¥－¥417,694

271

9,780

10,051

4,951

15,002(15,002)－

Sales, Segment income
Sales
Sales to third parties
Intersegment sales8Total403,987

20,129424,116

8,580

432,696(15,002)417,694

Segment income¥14,321¥8,442¥22,763¥3,485¥26,248¥95¥26,343

Notes
1. The other businesses segment includes the services of real estate business, marketing business and financial service
business that are not included in other reporting segments.
2. The ¥ 95 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)
Information is omitted since it is immaterial.
(Significant changes in goodwill)
Information is omitted since it is immaterial.
(Significant gain on negative goodwill)
Not applicable9