Summary of Consolidated Financial Results
for the Year Ended February 28, 2019 (FY2019)(Based on Japanese GAAP)
April 10, 2019
Company name:
ABC-MART, INC.
Stock exchange listing: Tokyo
Stock code:
2670
URL http://www.abc-mart.co.jp/ir/
Representative:
President and Representative Director
Minoru Noguchi
Inquiries:
Director, Corporate Planning Office Manager Jo Kojima
TEL 03-3476-5452
Scheduled date of ordinary general meeting of shareholders:
May 29, 2019
Scheduled date to file Securities Report:
May 30, 2019
Scheduled date to commence dividend payments:
May 30, 2019
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 28, 2019 (from March 1, 2018 to February 28, 2019)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2019
266,703
4.9
43,9291.3
45,133
1.4
30,285
1.9
Year ended February 28, 2018
254,283
6.4
43,3863.6
44,501
3.8
29,7144.8(Note) Comprehensive income:Year ended February 2019 27,949 million yen (△13.6%)
Year ended February 2018 32,330 million yen (22.8%)
Profit attributable toOrdinary profit/total Operating profit/net
Diluted earnings perowners ofEarnings per shareassetssales
shareparent/equity
Yen
Yen
%
%
%
Year ended February 28, 2019366.95
–
12.1
15.7
16.5
Year ended February 28, 2018
360.04
–
12.9
16.7
17.1
(Reference) Equity in earnings of affiliated companies:
Year ended February 2019 - million yen
Year ended February 2018 - million yen(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As of February 28, 2019
As of February 28, 2018
(Reference) Shareholders’ Equity:
As of February 28, 2019(3) Consolidated cash flows

Year ended February 28, 2019Year ended February 28, 2018

Millions of yen
296,941
279,697

Millions of yen
259,315
242,507258,376 million yen
Cash flows fromoperating activities
Millions of yen
34,943
27,697

%
87.0
86.4

As of February 28, 2018
Cash flows frominvesting activities
Millions of yen(9,756)(9,877)Yen
3,130.62
2,928.63

241,706 million yen

Cash and cash equivalents
Cash flows fromfinancing activities
at end of period
Millions of yen
Millions of yen(11,722)
139,743(8,699)126,782

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended February 28, 2018Year ended February 28, 2019Year ending February 29, 2020
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

60.00
65.00

–
–

70.00
105.00130.00170.0010,72914,030

36.1
46.3

4.7
5.6

–

85.00

–

85.00

170.0045.5

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
139,500
5.0
24,400(1.0)
24,720(2.3)
16,750(1.0)
202.95
August 31, 2019
Full year
278,300
4.3
45,2002.9
45,7001.3
30,8601.9
373.92
1

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
No
No
Changes in accounting estimates:
Restatement of prior period financial statements:
No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 201982,532,416 shares As of February 28, 201882,532,416 shares

Number of treasury shares at the end of the period
As of February 28, 2019393 shares As of February 28, 2018393 shares

Average number of shares during the period
Year ended February 28, 201982,532,023 shares Year ended February 28, 201882,532,023 shares(Reference) Summary of Nonconsolidated Financial Statements
1.Nonconsolidated financial results for the year ended February 28, 2019 (from March 1, 2018 to February 28, 2019)(1) Nonconsolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended February 28, 2019Year ended February 28, 2018

Millions of yen
191,347
186,243

Operating income
%
2.7
4.1

Millions of yen
38,38038,686%△0.8
3.5

Ordinary income
Millions of yen
40,162
40,719%△1.4
4.3

Net income
Millions of yen
27,17827,156%
0.1
4.5

Diluted net income
per share
Yen
Yen
329.31
329.04-

Net income per share
Year ended February 28, 2019Year ended February 28, 2018
(2) Nonconsolidated financial position
Total assets
As of February 28, 2019
As of February 28, 2018
(Reference) Shareholders’ Equity:
As of February 28, 2019

Net assets

Millions of yen
256,821240,482
227,681 million yen

Millions of yen
227,681
211,649
As of February 28, 2018

Equity ratio

Net assets per share
%
88.7
88.0

Yen
2,758.70
2,564.45

211,649 million yen

2. Forecast of nonconsolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)
Percentages indicate year-on-year changes
Net sales
Ordinary income
Net income
Net income per share
Millions of yen%
Millions of yen%
Millions of yen%
Yen
Six months ending
101,2103.1
22,010△2.8
14,860△2.1
180.05
August 31, 2019
Full year
196,300
2.6
40,2000.1
27,2100.1
329.69THIS CONSOLIDATED FINANCIAL RESULTS STATEMENT AND THIS FINANCIAL RESULTS STATEMENT ARE EXEMPTFROM THE AUDIT PROCEDURES.
FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe forecast for the year ending February 29, 2020 is based on ABC-MART, INC.'s hypotheses, plans and estimates at the date of publication. It is possiblethat some uncertain factors will cause the Company's future performance to differ significantly from the contents of forecast.

2Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2018

As of February 28, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade126,963
9,386

139,914
10,423Inventories
Other

64,3905,198

65,665
4,648

(19)

(42)

205,919

220,610

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

28,17930,266

Accumulated depreciation(15,022)(16,089)

Buildings and structures, net

13,157

14,176

12,463

13,612

Accumulated depreciation(8,242)(8,818)Tools, furniture and fixtures, net

4,221

4,794

14,111

17,099

931
474

203
432

(388)

(378)

Tools, furniture and fixtures

Land
Construction in progress
Other
Accumulated depreciation
Other, net

8654

32,50736,328Intangible assets
Trademark right

1,996

1,570

Goodwill
Other

4,109
1,968

2,876
2,392

Total intangible assets

8,075

6,840

Investments and other assets
Investment securities

52

46

Shares of subsidiaries and associates
Long-term loans receivable

2,647
1,953

2,647
1,802

Lease and guarantee deposits
Net defined benefit asset

25,18083

24,961–

Deferred tax assets
Other

2,751
543

3,087
634

Allowance for doubtful accounts

(19)

(17)

Total investments and other assets

33,19433,16273,77776,330279,697

296,941

Total property, plant and equipment

Total non-current assets
Total assets3

(Millions of yen)
As of February 28, 2018

As of February 28, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

15,262

13,877

Short-term loans payable
Income taxes payable

2,775
7,961

2,189
7,721

Provision for bonuses
Provision

906
337

915
361

Asset retirement obligations
Notes payable - facilities

16
883

23
1,227

Other

6,780

9,264

Total current liabilities

34,92435,580

682
370

703
377

1,212

964

Non-current liabilities
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities

2,264

2,045

37,18937,626

Capital stock
Capital surplus

19,972
23,97919,972
23,979Retained earnings
Treasury shares

186,448(2)

205,591(2)

Total shareholders' equity

230,399

249,542138Foreign currency translation adjustment

11,293

8,825

Total accumulated other comprehensive income

11,306

8,833

Total liabilities
Net assets
Shareholders' equity

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

Non-controlling interests
Total net assets
Total liabilities and net assets

4

801

938

242,507259,315

279,697

296,941

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
February 28, 2018
Net sales

Fiscal year ended
February 28, 2019

254,283

266,703

Cost of sales

118,631

126,158

Gross profit

135,651

140,545

Packing and transportation expenses
Advertising expenses

3,073
6,898

3,432
6,465

Warehousing expenses
Directors' compensations, salaries and allowances

2,806
24,762

3,090
25,894

Bonuses
Provision for bonuses

1,635
904

1,678
914

Retirement benefit expenses
Legal and employee benefits expenses

427
3,573

528
3,867

Rents
Depreciation

26,735
4,214

28,044
4,506

Utilities expenses
Commission fee

2,136
5,305

2,193
5,608

Taxes and dues
Amortization of goodwill

1,769
861

1,815
847

Other

7,160

7,728

Total selling, general and administrative expenses

92,26596,61543,38643,929

119

93

55
1,096

–
1,146

Advertising medium income
Other

53
301

38
597

Total non-operating income

1,626

1,876

10

10

–
464

79
498

Selling, general and administrative expenses

Operating profit
Non-operating income
Interest income
Foreign exchange gains
Rent Income

Non-operating expenses
Interest expenses
Foreign exchange losses
Rent expenses
Other

36

84

Total non-operating expenses

511

672

44,50145,133

Ordinary profit

5

(Millions of yen)

Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

Fiscal year ended

Fiscal year ended

February 28, 2018

February 28, 2019
100

53

100

53

211

168

Impairment loss
Other

623
–

830
1

Total extraordinary losses

834

1,000

Profit before income taxes

43,76744,186

Income taxes - current

14,73014,243

Income taxes - deferred

(839)

(520)

Total income taxes

13,89013,722

Profit29,87630,464

161

178

29,71430,285

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

Fiscal year ended

Fiscal year ended

February 28, 2018

February 28, 201929,87630,464

4
2,450

(4)
(2,510)2,454(2,514)32,33027,94932,13527,812

195

136

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended February 28, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

19,972Retained earnings

23,979Total shareholders'equityTreasury shares

166,637(2)

210,588

Changes of items during period
Dividends of surplus(9,903)(9,903)

Profit attributable to ownersof parent

29,71429,714

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period––

19,810–19,81019,972

23,979186,448(2)

230,399

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of current
period8

8,877

Total accumulated
other comprehensive
income8,886

Non-controllinginterests

606

Total net assets

220,080

Changes of items during period
Dividends of surplus(9,903)

Profit attributable to ownersof parent

29,714

Net changes of items otherthan shareholders' equity

4

2,416

2,420

195

2,615

Total changes of items during
period

4

2,416

2,420

195

22,426

Balance at end of current period

13

11,293

11,306

801

242,5078

Fiscal year ended February 28, 2019
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

19,972Retained earnings

23,979Total shareholders'equityTreasury shares

186,448(2)

230,399

Changes of items during period
Dividends of surplus(11,141)(11,141)

Profit attributable to ownersof parent

30,28530,285

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period––

19,143–

19,143

19,972

23,979205,591(2)

249,542

Accumulated other comprehensive income
Valuation difference on
Foreign currency
available-for-saletranslation adjustment
securities
Balance at beginning of current
period13

11,293

Total accumulated
other comprehensive
income11,306

Non-controllinginterests

801

Total net assets

242,507

Changes of items during period
Dividends of surplus(11,141)

Profit attributable to ownersof parent

30,285

Net changes of items otherthan shareholders' equity(4)(2,468)(2,472)136(2,336)

Total changes of items during
period(4)(2,468)(2,472)136

16,807

Balance at end of current period

8

8,825

8,833

938

259,3159

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

February 28, 2018

February 28, 2019

43,76744,186

Depreciation
Increase (decrease) in provision for bonuses

4,417
24

4,700
10

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

(0)
(121)

22
(94)

Interest expenses
Foreign exchange losses (gains)

10
(11)

10
(21)

Loss (gain) on sales and retirement of non-current assets
Impairment loss

111
623

116
830

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(886)(9,287)(1,241)(2,189)

Increase (decrease) in notes and accounts payable - trade
Other, net

3,463
756

(784)
3,260

Subtotal

42,86548,805

112
(11)

85
(9)

Income taxes paid

(15,269)(13,936)

Net cash provided by (used in) operating activities

27,69734,943

2(8,887)–(9,181)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

824
(638)

1,433
(1,053)

Payments for store removal
Proceeds from redemption of investment securities

(117)
498

(137)
–

Payments of loans receivableCollection of loans receivable

(100)
277

(105)
275

(2,379)767(1,436)
681

(135)
11

(268)
36

(9,877)(9,756)

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other payments
Other proceeds
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

1,200

(584)

Cash dividends paid
Other payments(9,899)(0)(11,137)(0)

Net cash provided by (used in) financing activities(8,699)(11,722)

Effect of exchange rate change on cash and cash equivalents

572

(503)

9,693

12,961

Cash and cash equivalents at beginning of period

117,089

126,782

Cash and cash equivalents at end of period

126,782

139,743

Net increase (decrease) in cash and cash equivalents

10