Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2018 (Q1 FY2019)(Based on Japanese GAAP)
July 4, 2018
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 to file Quarterly Securities Report:
July 5, 2018
Scheduled date to commence dividend payments:–Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2018 (from March 1, 2018 to May 31, 2018)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended May 31, 2018
70,0292.2
13,775(1.4)
14,207
(0.7)
9,577
0.8
Three months ended May 31, 2017
68,546
3.3
13,974(2.6)
14,304
(2.1)
9,498
(1.5)
(Note) Comprehensive income:Three months ended May 2018 6,781 million yen (△32.7%)
Three months ended May 2017 10,079 million yen (36.9%)
Earnings per share

Diluted earnings per share

Yen
116.04115.09Three months ended May 31, 2018
Three months ended May 31, 2017

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2018
As of February 28, 2018
(Reference) Shareholders’ Equity:
As of May 31, 2018

Net assets

Millions of yen
285,735
279,697

Equity ratio

Millions of yen
243,512242,507242,678 million yen As of February 28, 2018

Net assets per share%
84.9
86.4

Yen
2,940.42
2,928.63

241,706 million yen

2. Cash dividends
Annual dividends per share

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
60.00

Yen–

Yen
70.00

Yen
130.00

65.00

–

65.00

130.00Year ending February 28, 2019 (Forecast)(None) Revisions to dividend forecasts published most recently: None

Total

3. Forecast of consolidated financial results for the year ending February 28, 2019 (from March 1, 2018 to February 28, 2019)
Percentages indicate year-on-year changes
Profit attributable toNet 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
133,200
3.4
24,2002.2
24,5301.1
16,2701.2
197.14
August 31, 2018
Full year
263,400
3.6
43,9001.2
44,6000.2
29,7400.1
360.34(None) Revisions to financial forecasts published most recently: None14. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
NoChanges in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements:
No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 201882,532,416 shares As of February 28, 201882,532,416 shares

Number of treasury shares at the end of the period
As of May 31, 2018393 shares As of February 28, 2018393 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 201882,532,023 shares Three months ended May 31, 201782,532,023 shares

THIS QUARTERLY CONSOLIDATED FINANCIAL RESULTS STATEMENT IS EXEMPT FROM THE QUARTERLY REVIEWPROCEDURES.
FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe forecast for the year ending February 28, 2019 is based on ABC-MART, INC.'s hypotheses, plans and estimates at the date of publication. It is possible thatsome uncertain factors will cause the Company's future performance to differ significantly from the contents of forecast.

2

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

As of May 31, 2018

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

127,474
11,002Inventories
Deferred tax assets

64,3901,180

69,153
1,191

Other
Allowance for doubtful accounts

5,198
(19)

5,614
(24)

207,099

214,41228,179(15,022)

28,951(15,293)

13,157

13,657

12,463(8,242)

12,764(8,061)

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netTools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

4,221

4,703

14,111931

13,731
151

474
(388)

435
(365)

86

70

32,50732,315Trademark right
Goodwill

1,996
4,109

1,801
3,660

Other

1,968

1,995

Total intangible assets

8,075

7,457

Investment securities
Shares of subsidiaries and associates

52
2,647

52
2,647

Long-term loans receivable
Lease and guarantee deposits

1,953
25,1801,933
24,795Net defined benefit asset
Other

83
2,114

13
2,125

Allowance for doubtful accounts(19)(18)Total investments and other assets

32,01431,55072,597

71,323

279,697285,735

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

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of February 28, 2018

As of May 31, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

15,262

19,623

Short-term loans payable
Income taxes payable

2,775
7,961

3,124
5,277

Provision for bonuses
Provision

906
337

1,617
282

Asset retirement obligations
Notes payable - facilities

16883

21
1,179

Other

6,780

9,007

Total current liabilities

34,924

40,134

682
370

634
358

1,212

1,095

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

2,264

2,088

37,18942,223

Capital stock
Capital surplus

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

186,448(2)

190,248(2)

Total shareholders' equity

230,399

234,19913

13

Foreign currency translation adjustment

11,293

8,466

Total accumulated other comprehensive income

11,306

8,479

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

4801

833

242,507

243,512279,697285,735

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended

Three months ended

May 31, 2017

May 31, 2018

Net sales
Cost of sales

68,54630,88770,02931,906Gross profit

37,65838,122781

837

Advertising expenses
Warehousing expenses

1,931
743

1,567
816

Directors' compensations, salaries and allowances
Provision for bonuses

6,332
680

6,527
744

105
887

98
943

Rents
Depreciation

6,891
990

7,271
1,074

Utilities expenses
Commission fee

501
1,403

515
1,504

407
218

444
208

Other

1,807

1,791

Total selling, general and administrative expenses

23,684

24,347

13,974

13,7753639

Foreign exchange gains
Rent Income for house

34
247

–286

Advertising medium income
Other

12106

11230

Total non-operating income

437567

32–91

12116

Selling, general and administrative expenses
Packing and transportation expenses

Retirement benefit expenses
Legal and employee benefits expenses

Taxes and dues
Amortization of goodwill

Operating profit
Non-operating income
Interest income

Non-operating expenses
Interest expenses
Foreign exchange losses
Rent expenses
Other123

Total non-operating expenses

107

134

14,304

14,207

Ordinary profit

5

(Millions of yen)

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

Three months ended

Three months ended

May 31, 2017

May 31, 2018
053

05366

35

Impairment loss
Other33–

31

Total extraordinary losses

9940

Profit before income taxes

14,204

14,220

Income taxes - current

4,701

4,628

Income taxes - deferred

(54)

(46)

Total income taxes

4,646

4,581

Profit

9,557

9,638

58

61

9,498

9,577

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

6

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

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

Three months ended

Three months ended

May 31, 2017

May 31, 2018
9,557

9,638

(2)
523

(0)
(2,856)521(2,856)

10,0796,781

10,005

6,749

74

31

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

7