Summary Report of Consolidated Financial Results
For the Fiscal Year Ended June 30, 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:
Koji 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 fiscal year ended June 30, 2017
(1) Consolidated Results(Millions of yen, except per-share data)
ProfitChange Operating Change
Ordinary Change
ChangeNet Sales
Attributable to(%)(%)
Income(%)
Income(%)
Owners of Parent
Fiscal year ended
828,798
9.1
46,185
6.9
45,523
3.9
33,082
32.7
June 30, 2017
Fiscal year ended
759,592
11.1
43,185
10.4
43,797
9.1
24,938
7.7
June 30, 2016
(Note) Comprehensive income: 40,104 million yen [50.6%] (FY 2017.6), 26,628 million yen [△10.9%] (FY 2016.6)
Net Income
Per Share(Yen)

Net Income
Per Share-fully
diluted (Yen)

Return on
Equity (%)

Ordinary
Income on Total
Assets (%)

Operating
Income on
Net Sales (%)

Fiscal year ended
209.18209.04
13.5
7.6
June 30, 2017
Fiscal year ended
157.76
157.65
11.2
8.2
June 30, 2016
(Reference) Equity in earnings of affiliates: 511 million yen (FY 2017.6), － (FY 2016.6)(2) Financial Position

5.6
5.7

(Millions of yen, except per-share data)

Total Assets

Net assets

Ratio of Shareholders’ Equity
to Total Assets (%)

Net Assets
per Share (Yen)

As of642,868
279,93040.3
1,637.77
June 30,2017
June 30,2016
560,568
244,54741.3
1,464.31(Reference) Equity: 259,053 million yen (as of June 30, 2017), 231,528 million yen (as of June 30, 2016)(3) The Consolidated Statements of Cash Flows

Fiscal year ended
June 30, 2017
Fiscal year ended
June 30, 2016

(Millions of yen)

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents

56,441(40,593)

17,64478,094

29,110(52,197)

17,14844,496

2. Dividends
Dividends intotal (annual,Millions of yen)

Dividend payout
ratio (consolidated
basis, %)Dividends on net
assets (consolidated
basis, %)

22.00

3,478

13.9

1.6

21.00

26.00

4,113

12.4

1.7

22.00

27.00

Dividend per share (yen)Year Ended June 30,
2016
Year Ended June 30,
2017Year Ending June 30,2018 (Forecast)

Six Months Ended
December 31

Year Ended
June 30

Total

5.00

17.00

5.00
5.00

1

―

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)

Six Months Ending
December 31, 2017
Year Ending
June 30, 2018

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

ProfitAttributableto Owners of
ParentChange(%)

Net Income per
Share(Yen)

6.5

27,0002.5

27,0000.3

15,500

△5.8

97.99

6.2

48,0003.9

48,000

5.4

28,000△15.4

177.02Net Sales

Change(%)

445,000
880,000

4. Others(1) Significant changes in the scope of consolidation: None
Newly consolidated: －Excluded: －(2) Changes in accounting policies, procedures, and methods of presentation for preparing the consolidated financial
statements① Changes in line with revision to accounting standards: Yes② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(3) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury shares included) June 30, 2017
June 30, 2016
② Number of treasury shares
June 30, 2017
June 30, 2016
③ Average number of outstanding shares during the period
June 30, 2017
June 30, 2016
(4) Changes in accounting policies, changes in financial estimates and restatements(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)

158,178,760 shares
158,118,160 shares
4,633 shares
4,633 shares
158,148,194 shares
158,082,461 shares

The Company adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (AccountingStandards Board of Japan (ASBJ) Accounting Statement No. 26 of March 28, 2016; hereinafter called the“Implementation Guidance on Recoverability”) from the beginning of the fiscal year ended June 30, 2017 and revisedpart of its accounting treatment for recoverability of deferred tax assets.
As for application of the Implementation Guidance on Recoverability, the Company followed the transitional treatment
stipulated in paragraph 49 (4) of the Implementation Guidance on Recoverability.
The differences between the amount of deferred tax assets and deferred tax liabilities as of July 1, 2016 in the case of
applying the paragraph 49 (3) 1 to 3 of the Implementation Guidance on Recoverability and the amount of deferred tax
assets and deferred tax liabilities at the end of the previous fiscal year were added to the retained earnings as of July 1,
2016.
As a result, deferred tax assets (investments and other assets) increased by ¥4,890 million, retained earnings
increased by ¥2,406 million and non-controlling interests increased by ¥2,484 million as of July 1, 2016. With thereflection of the impact on net assets as of July 1, 2016, retained earnings and non-controlling interests increased¥2,406 million and ¥2,484 million, respectively, in the consolidated statements of changes in net assets.

※This financial summary is not subject to audit.
※ 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.

2Consolidated Balance Sheets(Millions of yen)
As of June 30,

As of June 30,

2017

2016

AmountAmountAssetsCurrent assets
Cash and deposits
Notes and Accounts receivable-trade
Purchased receivables
Merchandise and finished goods¥76,340¥42,894

8,966

7,720

－

6,606

123,969

117,400

Prepaid expenses

3,525

3,214

Deferred tax assets

7,540

7,210

Other

7,263

10,999(18)(66)

227,585

195,977

Buildings and structures, net

118,623

108,114

Tools, furniture and fixtures, net

17,24916,616

Land

171,018

165,185

233

238

3,643

1,899

310,766

292,052

Goodwill

5,363

6,852

Other

10,525

10,153

Total intangible assets

15,88817,005Investment securities

7,539

5,736

Long-term loans receivable

23,171864

Long-term prepaid expenses

3,214

2,754

Deferred tax assets

8,801

3,310

Lease and guarantee deposits

40,47435,645

Other

7,131

9,022

Allowance for doubtful accounts(1,701)(1,797)

Total investments and other assets

88,62955,534

Allowance for doubtful accounts
Total current assets

Non-current assets
Property, plant and equipment

Other, net
Construction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets

Total assets

3415,283

364,591¥642,868¥560,568

(Millions of yen)
As of June 30,

As of June 30,

2017

2016

AmountAmountLiabilities
Current liabilities
Accounts payable - trade¥85,661¥70,194

Short-term loans payable

285

1,680

Current portion of long-term loans payable

5,421

18,557

Current portion of bonds

19,316

12,686

Payables under fluidity lease receivables

7,152

7,147

Accrued expenses

9,964

8,799

Income taxes payable

9,128

5,573

Provision for point card certificates

1,691

1,327

Other

26,20722,032

Total current liabilities

164,825

147,995

Bonds payable

74,89076,471Long-term loans payable

84,63845,082Long-term payables under fluidity lease receivables

19,366

26,876

Asset retirement obligations

6,000

5,177

Non-current liabilities

Negative goodwill

353

439

Other

12,866

13,981

Total non-current liabilities

198,113

168,026

362,938

316,021

Capital stock

22,42522,382

Capital surplus

19,42525,215Retained earnings

216,446

184,205

Total liabilities
Net assets
Shareholders' equity

Treasury shares
Total shareholders' equity

(14)

(14)

258,282

231,788

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

326

12

Foreign currency translation adjustment

445

(272)

Total accumulated other comprehensive income

771

(260)

98

23

Subscription rights to shares
Non-controlling interests

20,77912,996

Total net assets

279,930

244,547¥642,868¥560,568

Total liabilities and net assets

4Consolidated Statements of Income(Millions of yen)
Fiscal year ended
June 30, 2016

Fiscal year ended
June 30, 2017
AmountAmountNet sales¥828,798¥759,592

Cost of sales

610,218

557,699

218,580

201,893

172,395

158,708

46,18543,185Interest and dividend income

968

706

Amortization of negative goodwill

86

86Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Equity in earnings of affiliates

511－

Penalty income

126

869

Commission fee

449

426

Other

1,936

1,200

Total non-operating income

4,076

3,287

1,145

1,003

Loss on valuation of derivatives－

563

Bond issuance cost

195

213

Cost of claim's liquidation

502

601

2,174

189

722

106

4,738

2,675

45,523

43,797

Gain on sales of non-current assets

9,547

117

Gain on sales of shares of subsidiaries and affiliates

2,968

－

271

－

12,786

117

1,537

179

Non-operating expenses
Interest expenses paid on loans and bonds

Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income

Other
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on retirement of non-current assets

251

279

Loss on closing of stores

959

1,197

Other

237

146

2,984

1,801

Total extraordinary losses
Profit before income taxes

55,325

42,113

Income taxes - Current

19,33913,515

Income taxes - Deferred(3,111)(957)

Total income taxes

16,22812,558

Profit39,09729,555

Profit attributable to non-controlling interests

6,015

4,617

¥33,082¥24,938

Profit attributable to owners of parent

5Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
June 30, 2016

Fiscal year ended
June 30, 2017
AmountProfitAmount¥39,097¥29,555

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

304

(572)

Foreign currency translation adjustment
Share of other comprehensive income of affiliates
accounted for using equity method706(2,355)

(3)

－

1,007

(2,927)

Comprehensive income¥40,104¥26,628

Comprehensive income attributable toComprehensive income attributable to owners of parent¥34,115¥22,020

5,989

4,608

Total other comprehensive income

Comprehensive income attributable tonon-controlling interests

6Consolidated statements of changes in Net Assets(Millions of yen)
Fiscal year ended
June 30, 2017
AmountShareholders' equity
Capital stock
Balance at beginning of current period
Changes of items during period
Issuance of new shares
Total changes of items during period
Balance at end of current period
Capital surplus
Balance at beginning of current period
Changes of items during period
Issuance of new shares
Change in treasury shares of parent arisingfrom transactions with non-controlling shareholders
Capital increase of consolidated subsidiaries
Purchase of shares of consolidated subsidiaries
Total changes of items during period
Balance at end of current period
Retained earnings
Balance at beginning of current period
Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Change of scope of equity method
Other
Total changes of items during period
Balance at end of current period
Treasury shares
Balance at beginning of current period
Changes of items during period
Purchase of treasury shares
Total changes of items during period
Balance at end of current period
Total shareholders' equity
Balance at beginning of current period
Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners of parent
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Purchase of shares of consolidated subsidiaries
Purchase of treasury shares
Change of scope of equity method
Change in treasury shares of parent arisingfrom transactions with non-controlling shareholders
Other
Total changes of items during period
Balance at end of current period

7

Fiscal year ended
June 30, 2016
Amount¥22,382¥22,22743
43
22,425155
155
22,382

25,21525,030

42

155

－

30

(4,150)(1,682)(5,790)19,425－－
185
25,215

184,205
2,406
186,611

162,428－
162,428(3,479)33,082
(4)
(0)
－
236
29,835
216,446(3,159)24,938－－(2)－
21,777
184,205

(14)

(3)

－
－
(14)

(11)
(11)
(14)

231,7882,406
234,194

209,682－
209,68285(3,479)33,082(4)(4,150)(1,682)－－310(3,159)24,938
－
－
－
(11)
(2)

－

30

236
24,088¥258,282－
22,106¥231,788

(Millions of yen)
Fiscal year ended
June 30, 2016
AmountFiscal year ended
June 30, 2017
AmountAccumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at beginning of current period
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period
Foreign currency translation adjustment
Balance at beginning of current period
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period
Total accumulated other comprehensive income
Balance at beginning of current period
Changes of items during period

¥12

¥569

314
314
326

(557)
(557)
12

(272)

2,090

717
717
445

(2,362)(2,362)
(272)

(260)

2,659

Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

1,031
1,031
771

(2,919)(2,919)(260)

Balance at beginning of current period
Changes of items during period
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

23

13

75
75
98

10
10
23

Balance at beginning of current period
Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period

12,9962,484
15,480

9,013
－
9,013

Net changes of items other than shareholders' equity
Total changes of items during period

5,299
5,299

3,983
3,983

Balance at end of current period

20,77912,996

Balance at beginning of current period
Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners of parent
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Purchase of shares of consolidated subsidiaries
Purchase of treasury shares
Change of scope of equity method
Change in treasury shares of parent arising fromtransactions with non-controlling shareholders
Other
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

244,547
4,890
249,437

221,367－
221,36785(3,479)33,082(4)(4,150)(1,682)－－310(3,159)24,938
－
－
－
(11)
(2)

－

30

236
6,405
30,493¥279,930－
1,074
23,180¥244,547

Subscription rights to shares

Non-controlling interests

Total net assets

8Consolidated Statements of Cash Flows

Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses paid on loans and bonds
Gain on sales of shares of subsidiaries and affiliates
Gain on sales of investment securities
Equity in earnings of affiliates
Loss (gain) on sales and retirement of property, plant and equipment
Loss on store closings
Offset payments for house rental fee with lease and guarantee deposits
Increase in notes and accounts receivable-trade
Increase in inventories
Increase in notes and accounts payable-trade
Decrease in other current assets
Increase (decrease) in other current liabilities
Decrease in other non-current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Dividends received from affiliates accounted for using equity method
Net cash provided by operating activities
Cash flows from investing activities:
Payments into time deposits
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
Proceeds from sales of shares ofsubsidiaries resulting in change in scope of consolidation
Purchase of shares of subsidiaries and associates
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

9

Fiscal year ended
June 30, 2017
Amount(Millions of yen)
Fiscal year ended
June 30, 2016
Amount¥55,325
15,952
1,537
(86)
(51)
(968)
1,145
(2,968)(215)(511)(9,291)959
1,754(2,928)(6,517)
9,108
592
5,472
(42)
3,199
71,466702(1,150)(15,830)
1,203
50
56,441¥42,113
15,092
179
(86)
60
(706)
1,003
－
－
－
163
1,197
1,457
(2,264)(23,022)
9,745
3
(8)
(11)
842
45,757500(1,005)(17,772)
1,630－
29,110(59)
59(39,398)
16,594(858)(3,552)224(1,950)
1,122

(89)
389
(43,736)
1,144
(465)
(4,492)170(3,341)
－

3,265

－

(3,527)(22,818)
10,24263¥(40,593)(176)(1,685)9
75¥(52,197)

Fiscal year ended
June 30, 2017
Amount(Millions of yen)
Fiscal year ended
June 30, 2016
Amount¥1,24944,086(18,734)
18,302(13,001)(7,985)85(3,479)(660)(2,219)17,644¥(110)
38,934(18,019)
26,680(19,173)(7,621)310(3,159)(646)(48)
17,148(46)
33,44644,496(825)(6,764)
51,292

103

－

－

(32)

49

－

¥78,094¥44,496

Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Repayments of payables under fluidity lease receivables
Proceeds from issuance of common shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Other, net
Net cash provided by financing activities
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
Increase in cash and cash equivalents from newly consolidated
subsidiary
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Increase in cash and equivalents resulting from change of accounting
period of consolidated subsidiaries
Cash and cash equivalents at end of period

Segment Information
1. Overview of Reporting Segments
The Company’s reporting segments are those for which financial information separate from that of other units
comprising the Group can be obtained. These reporting segments are the subject of regular reviews by the board of
directors for determining the allocation of management resources and assessment of business results.
The Group regards “Retail business” and “Rent business” as reporting segments from scope of business. The “Retailbusiness” presents stores such as "Don Quijote", "MEGA Don Quijote", "Nagasakiya", "Doit". The “Rent business”
operates a tenant invitation in the shopping malls and management.
2. Calculation of net sales, profit and loss, and assets, etc.
The same accounting method with which is applied to the consolidated financial statements is applied to segment
accounting.
Income of reporting segment and others are calculated based on operating income.
Intersegment sales and transfers calculated based on market value.

10

3. Information related to net sales, profit and loss, and assets, etc. by reporting segment
For the Fiscal Year Ended June 30, 2017
(Millions of yen)
Reporting segment
RetailbusinessRentbusiness

Sub Total

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)¥801,802¥20,559¥822,361¥6,437¥828,798¥―¥828,798

487

20,054

20,541

9,156

29,697(29,697)―

Total

802,289

40,613842,902

15,593

858,495(29,697)828,798

Segment income

23,693

16,12339,816

6,395

46,211(26)

46,185

Segment Assets

360,658

239,653

600,311

43,091

643,402(534)

642,868

10,797

4,861

15,658324

15,982(30)

15,952

Sales, Segment income
Sales
Sales to third parties
Intersegment sales

Others (Note 4)(1) Depreciation expenses(2) Increase in property, plant¥18,902¥23,889¥42,791¥154¥42,945¥(1,892)¥41,053and equipment, andintangible assets
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 ¥(26) million adjustment to segment income is an intersegment elimination.
The ¥(534) million adjustment to segment assets includes ¥47,680 million of companywide assets not allocated to therespective reporting segments, and ¥ (48,214) million of net eliminations for intersegment transaction.
3. Segment income is adjusted to the consolidated operating income.
4. Increase in property, plant and equipment, and intangible assets includes long-term prepaid expenses.
For the Fiscal Year Ended June 30, 2016
(Millions of yen)
Reporting segment
RetailbusinessRentbusiness

Sub Total

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)¥733,333¥19,781¥753,114¥6,478¥759,592¥―¥759,592

16

18,026

18,042

8,486

26,528(26,528)―

Total

733,349

37,807771,156

14,964

786,120(26,528)

759,592

Segment income

22,74614,15936,905

6,733

43,638(453)

43,185

Segment Assets

342,763

211,166

553,92961,752615,681(55,113)560,568

9,956

4,551

14,507351

14,858234

15,092

Sales, Segment income
Sales
Sales to third parties
Intersegment sales

Others (Note 4)(1) Depreciation expenses(2) Increase in property, plant¥22,519¥28,668¥51,187¥424¥51,611¥(5,785)¥45,826
and equipment, andintangible assets
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 ¥(453) million adjustment to segment income is an intersegment elimination.
The ¥(55,113) million adjustment to segment assets includes ¥43,548 million of companywide assets not allocated to
the respective reporting segments, and ¥ (98,661) million of net eliminations for intersegment transaction.
3. Segment income is adjusted to the consolidated operating income.
4. Increase in property, plant and equipment, and intangible assets includes long-term prepaid expenses.

11