Don Quijote Holdings Co., Ltd.
Results for FY 2018
Earnings Results
July 1, 2017 - June 30, 2018
August 10, 2018

Earnings summary
12 months to June 2018

Consolidated(Millions of yen)

12 months to June 2017

ActualShare

YoY

ActualShare

Net sales

941,508

100.0%

113.6%

828,798

100.0%

Gross profit

243,99125.9%

111.6%

218,580

26.4%

SGA

192,423

20.4%

111.6%

172,395

20.8%

Operating profit

51,5685.5%

111.7%

46,185

5.6%

Recurring profit

57,2186.1%

125.7%

45,523

5.5%

Profit attributable toowners of parent

36,4053.9%

110.0%

33,082

4.0%

EPS(Yen)230.14–110.0%

209.18- Consolidated and same store sales went up 13.6% and 4.1% YoY respectively. Traffic and per-customer sales rose
by facing the reality of consumption trend and being more price competitive. Tax-free sales went up 56.1% and beat lastyear’s sales for 45 consecutive months.
 GPM declined 50 basis points. We invested in price to respond to rapidly-changing consumer sentiment.
● SG&A went down 0.4 pts. Personnel cost and rent increased associated with new store openings. Expenses related to
newly-acquired QSI and Singapore stores were added. Personnel cost at existing stores was streamlined.
 Operating profit and net profit went up 11.7% and 10.0% respectively. Don Quijote Holdings made a growth in sales andoperating profit for 29 consecutive years. Net profit hit an all time high for 9 consecutive years.

1Same-store sales
110.0%

105.0%

100.0%

95.0%
2015
Dec.

2016
Jun.

Existing stores
Sales (%)

Customer traffic(%)

2017
Jan.

Feb.

2016
Dec.

Mar.

Apr.

May.

Jun.

2017
Jun.

Jul.

Aug. Sep.

Oct.

2017
Dec.

Nov.

Dec.

2018
Feb.
Jan.

Mar.

2018
Jun.

Apr. May. Jun.

Jul.

102.6 102.1 103.2 102.1 102.8 105.1 105.2 105.1 106.4 102.6 105.9 104.0 103.0 103.6 105.2 103.1 101.6 104.4 100.0
102.7 101.6 103.6 103.1 102.0 104.5 104.0 104.2 105.5 100.2 105.4 103.0 101.3 101.3 102.5 101.1 99.4 100.9

98.9

Customerspending (%)

99.9

100.5

99.6

99.0

100.7 100.6 101.1 100.9 100.9 102.4 100.5 100.9 101.6 102.3 102.6 101.9 102.2 103.5 101.2

Existing store
count244244

245247258258

265

269

271274275277278278278

280

283283288

 DQ SSS went up 4.1% (1.9pts from domestic sales and 2.2pts from tax-free sales), traffic +2.3% and spending +1.8%
for FY June 2018.
 Bad weather gave a negative impact on the consumption. Right product mix and pricing attracted greater number ofcustomers and delivered a strong sales momentum.

2

Sales breakdown by product category
12 months to June 2018

Consolidated(Millions of yen)

ActualShare

12 months to June 2017
YoY

ActualShare

Other products

76,698217,257
311,565
159,904
54,94693,127

8.1%
23.1%
33.1%
17.0%
5.8%
9.9%

111.3%
118.4%
113.5%
100.9%
102.5%
148.3%

68,912
183,505
274,553
158,451
53,59662,785

8.3%
22.1%
33.1%
19.1%
6.5%
7.6%

Total retail store business

913,49797.0%

113.9%

801,802

96.7%

Rent income

21,295

2.3%

103.6%

20,559

2.5%

Other business

6,716

0.7%

104.3%

6,437

0.8%

Total

941,508

100.0%

113.6%

828,798

100.0%

Home electrical appliances
Miscellaneous household goods
Foods
Watches & fashion merchandiseSporting goods & leisure goods

Home appliances: Smartphone accessories and headsets took the lead. Private brand 4K TV attracted a great deal of attention and made a big hit.

Household goods: Seasonal items sales went up sharply in association with a temperature fluctuation. Daily consumables were strong.
Rapidly-growing overseas travelers brought a robust cosmetics and drugs sales.

Foods: All product groups delivered strong sales momentum such as processed food. MEGA stores enjoyed great deli sales.

Watches & Fashion: Sales for e-cigarettes and their parts grew fast. Casual wear, rain wear as well as shoes and bags were contributors.

Sports & Leisure: Seasonal events encouraged the sales for outdoor goods. Exercising items including compression shirts were strong enough tooffset the slow sales for toys.

3The number of stores(Number of stores)

FY2016FY2017FY2018

Don Quijote

194

198

209

MEGA

3940

43

New MEGA

55

7280

Others3944

47

Total stores in Japan

327

354

379

Overseas141439Global Total

341

368

418

Domestic opening

40

3255

Domestic closure

555Net increase352750 31 new stores were opened in FY2018 : 14 Don Quijote, 3 MEGA, 8 New MEGA, 3 small format stores, 1 Doit in Japan.
2 overseas stores in Singapore opened under the name of Don Don Donki format. 24 stores were newly added to ouroverseas store count because QSI (Supermarket operator in Hawaii) joined our group.
 5 stores closed due to nations’ land readjustment project and other reasons.

4Key components in SG&A
12 months to June 2018

Consolidated(Millions of yen)

12 months to June 2017

ActualShare

YoY

ActualShareNet sales

941,508

100.0%

113.6%828,798

100.0%

Salary allowance

71,941

7.6%

111.5%

64,5387.8%

Rent

28,3303.0%

121.3%

23,357

2.8%

Commission paid

22,9572.4%

117.6%

19,524

2.4%

Depreciation andamortization

14,8151.6%

105.3%

14,075

1.7%

Others54,3805.8%

106.8%

50,901

6.1%

SG&A

192,423

20.4%

111.6%

172,395

20.8%

 SG&A expenses as a percent of sales decreased 40 basis points. Personnel cost and rent increased associated with newstore openings. Expenses related to newly consolidated QSI and Singapore stores were added. Personnel cost at existing
stores were streamlined.
 SG&A increased by 11.6% year-over-year, however, it would have gone up by 6.8% without newly consolidated overseas
business. (Hawaii and Singapore)5

Sales and profit by business
Sales, profit and loss by segment from Jul.1, 2017, to Jun.30, 2018
Consolidated

Retail store

Rent income

Others

Total(Millions of yen)

Adjusted
amountConsolidated

Sales to external customers

913,497

21,295

6,716

941,508-941,508

Internal sales or transfers
between segments

731

21,812

9,125

31,668 (31,668)

-

Total

914,228

43,107

15,841

973,176 (31,668)

941,508

Segment profit

27,76017,237

6,329

51,326

51,568242

Sales, profit and loss by segment from Jul.1, 2016, to Jun.30, 2017
Consolidated

Retail store

Rent income

Others

Total(Millions of yen)

Adjusted
amountConsolidated

Sales to external customers

801,802

20,5596,437

828,798-

828,798

Internal sales or transfers
between segments

487

20,054

9,156

29,697 (29,697)

-

Total

802,289

40,613

15,593

858,495 (29,697)

828,798

Segment profit

23,693

16,123

6,39546,211

46,185(26) Profit in the retail business was 27.8 billion yen which is our mainstay.
 Profit in the tenant leasing business was 17.2 billion yen.
 Profit in other business was 6.3 billion yen.

6Sales, profit and asset by subsidiaries
Sales, profit and asset by subsidiaries from Jul.1, 2017, to Jun.30, 2018
Consolidated

Don Quijote 1)

Doit

Nagasakiya 2)

Overseas 3)

JAM 4)(Millions of yen)

Consolidated

Net sales

666,052

16,820177,825

67,383

19,736

941,508

Operating profit

26,620

171

4,941

1,487

7,909

51,568Total asset

266,057

22,98984,214

66,254

178,481807,057

Net asset

133,750

19,45051,21650,580104,300

312,495

PL/1USD=¥110.7

1SGD=¥82.2

BS/1USD=¥106.3

1SGD=¥80.8

Sales, profit and asset by subsidiaries from Jul.1, 2016, to Jun.30, 2017
Consolidated

Don Quijote 1)

Doit

Nagasakiya 2)

Overseas 3)

JAM 4)(Millions of yen)

Consolidated

Net sales

596,419

16,708

165,700

36,63618,109828,798

Operating profit

22,492

418

4,814

1,303

7,395

46,185

Total asset

240,624

22,93680,54023,038140,255

642,868

Net asset

119,447

19,435

48,692

16,731

67,131279,930

1) Don Quijote runs retail business.
2) Nagasakiya shows retail business only.
2) Overseas includes DQ USA , MARUKAI, QSI and PPIH.

PL/1USD=¥108.88
BS/1USD=¥112.18

3) PL on JAM shows its results from July1,2017 to June 30,2018. BS is as of June 30,2018.

 Strong performance at subsidiaries contributed to overall group strong results.

7

Balance Sheet(Millions of yen)

Consolidated(Millions of yen)

Consolidated

As of June 30,2018

Change fromJune 30, 2017

Total current assets

244,125

16,540Total current liabilities

Cash and deposits

71,973(4,367)

Merchandise

135,781

11,812

Total noncurrent assets

562,932

147,649

Total property, plan and equipment

347,913

37,147Long-term bonds

Buildings

133,415

14,792Long-term borrowings

Land

188,866

17,848Long-term payables under fluidity
lease receivables

Total intangible assets

28,247

12,359Goodwill

17,600Total investments and other assets
Lease and guarantee deposits

Total assets

As of June 30,2018

Change fromJune 30, 2017

171,886

7,061

Accounts payable

93,030

7,369

Short-term liabilities*

21,404(3,618)322,676

124,563

91,274

16,384200,668

116,030

12,104(7,262)

Total liabilities

494,562

131,624

12,237

Net assets

312,495

32,565

186,772

98,143

Total shareholders’ equity

291,337

33,05546,494

6,020

Non-controlling interests

21,7871,008

807,057

164,189

Liabilities and net assets

807,057

164,189

Total noncurrent liabilities* Short-term liabilities = Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds

 Cash & deposits: We financed long-term borrowing for new stores in next year and afterwards, the acquisition of QSI and thecapital alliance with Family Mart UNY.
 Merchandise: We added 9.3 billion yen of inventory to open 29 new stores in Japan. 3.3 billion yen was added because of QSI
and 2 stores in Singapore.
 Payables associated with the liquidation of receivables : 19.4 billion yen.

8

Cash flows and Capital expenditure(Millions of yen)

Consolidated Cash Flows

12 months to June
2018

Cash and equivalents at beginning of period
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash and equivalents
Cash and equivalents at end of period

78,09446,081(164,443)
116,083(2,211)75,883

12 months to June
2017

44,49656,441(40,593)
17,64433,59878,094

Change33,598(10,360)(123,850)
98,439(35,089)(2,211)(Millions of yen)

Consolidated Capital Expenditures
Capital expenditures
Cash flows*
Net increase (decrease)

12 months to June
2018

56,061
48,603(7,458)12 months to June
2017

45,357
46,661
1,304

Change10,704
1,942(8,762)* Cash flows = Net income + Depreciation and amortization + Extraordinary loss - Dividend Cash flow from operating activities was 46.1 billion yen positive. Positive factors :56.4 billion yen of income before income
taxes, 17.4 billion yen of depreciation and amortization. Negative factors : 9.2 billion yen increase in inventory and 19.2
billion yen for corporate tax payment.
 Cash flow from financing activities was 116.1 billion yen positive mainly due to 128.6 billion yen of net increase of long-termloans, 4.1 billion yen of dividend payment.

 Capex was 56.1 billion yen. (DQ: 18.3 bil, Nagasakiya: 3.3 bil, JAM: 33.5 bil). Free cash flow was 7.5 billion yen negative.

9Earnings summary for Q4
3 months to June 2018

Consolidated(Millions of yen)

3 months to June 2017

ActualShare

YoY

ActualShare

Net sales

238,352

100.0%

114.1%

208,811100.0%

Gross profit

63,37626.6%

115.9%

54,675

26.2%

SGA

51,86821.8%

113.7%

45,627

21.9%

Operating profit

11,5084.8%

127.2%

9,047

4.3%

Recurring profit

13,7775.8%

144.8%9,517

4.6%

Profit attributable toowners of parent

9,242

3.9%

151.4%

6,104

2.9%

EPS(Yen)

58.42-

151.4%

38.59

-

10

Sales breakdown by product category for Q4
3 months to June 2018

Consolidated(Millions of yen)

ActualShare

3 months to June 2017
YoY

ActualShare

Other products

16,72854,77578,82037,751
12,39830,828

7.0%
23.0%
33.1%
15.8%
5.2%
12.9%

105.9%
109.3%
110.8%
102.8%
99.4%
192.5%

15,791
50,12871,16036,723
12,46816,015

7.6%
24.0%
34.1%
17.6%
6.0%
7.7%

Total retail store business

231,299

97.0%

114.3%

202,285

96.9%

Rent income

5,381

2.3%

105.3%

5,110

2.4%

Other business

1,672

0.7%

118.0%

1,417

0.7%

Total

238,352

100.0%

114.1%

208,811100.0%

Home electrical appliances
Miscellaneous household goods

Foods
Watches & fashion merchandiseSporting goods & leisure goods

11Key components in SG&A for Q4
3 months to June 2018

Consolidated(Millions of yen)

3 months to June 2017

ActualShare

YoY

ActualShare

Net sales

238,352

100.0%

114.1%

208,811100.0%

Salary allowance

Commission paid

19,150
7,485
6,439

8.0%
3.1%
2.7%

117.6%
121.6%
116.7%

16,286
6,156
5,517

7.8%
2.9%
2.6%

Depreciation andamortization

4,078

1.7%

109.7%

3,718

1.8%

Others

14,71651,8686.2%
21.8%

105.5%
113.7%

13,95045,627

6.7%
21.9%

Rent

SG&A

12

Forecast for fiscal June 2019
FY2019 Forecast

Consolidated(Millions of yen)

FY2018 1H Forecast

Plan

Share

YoY

Plan

Share

Net sales

1,000,000

100.0%

106.2%

503,000

100.0%

Gross profit

260,000

26.0%

106.6%

131,800

26.2%

SGA

207,000

20.7%

107.6%

102,300

20.3%

Operating profit

53,0005.3%

102.8%

29,500

5.9%

Recurring profit

58,0005.8%

101.4%

32,400

6.4%

Net profit

37,0003.7%

101.6%

19,5003.9%

EPS (Yen)

233.90―101.6%

123.27―

Capitalexpenditure

40,000

―

71.4%

―

―

Depreciation

15,5001.6%

104.6%――

 Full year forecast：Sales 1trillion yen, OP :53 billion yen, RP：58 billion yen, NP：37 billion.
 Don Quijote SSS forecast : DQ SSS forecast :+1.0% in 1H ＋1.0％ in 2H and +1.0% for full year.

13