Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2019(Q1 FY2020)(Based on Japanese GAAP)
July 4, 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 to file Quarterly Securities Report:
July 8, 2019
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, 2019 (from March 1, 2019 to May 31, 2019)(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, 2019
74,648
6.6
14,315
3.9
14,5022.1
9,8112.4
Three months ended May 31, 2018
70,0292.2
13,775(1.4)
14,207(0.7)
9,577
0.8(Note) Comprehensive income:Three months ended May 2019 9,397 million yen (38.6%)
Three months ended May 2018 6,781 million yen (△32.7%)
Earnings per share

Diluted earnings per share

Yen
118.88116.04Three months ended May 31, 2019
Three months ended May 31, 2018

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2019
As of February 28, 2019
(Reference) Shareholders’ Equity:
As of May 31, 2019
2. Cash dividends

Net assets

Millions of yen
303,226
296,941

Equity ratio

Millions of yen
260,046259,315

259,003 million yen As of February 28, 2019

Net assets per share
%
85.4
87.0

Yen
3,138.22
3,130.62

258,376 million yen

Annual dividends per share

Year ended February 28, 2019Year ending February 29, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
65.00

Yen–

Yen
105.00Yen
170.00

85.00

–

85.00

170.00Year ending February 29, 2020 (Forecast)(None) Revisions to dividend forecasts published most recently: NoneTotal

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 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
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(None) Revisions to financial forecasts published most recently: None1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2019(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, 201982,532,416 shares As of February 28, 201982,532,416 shares

Number of treasury shares at the end of the period
As of May 31, 2019

470 shares As of February 28, 2019393 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 201982,532,002 shares Three months ended May 31, 201882,532,023 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 29, 2020 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, 2019

As of May 31, 2019

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade139,914
10,423

136,379
12,683Inventories
Other

65,665
4,648

69,466
8,236

(42)

(50)

220,610

226,716

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

30,26630,658

Accumulated depreciation(16,089)(16,298)

Buildings and structures, net

14,176

14,36013,612

13,994

Accumulated depreciation(8,818)(8,954)Tools, furniture and fixtures, net

4,794

5,039

17,09917,076

203
432

191
457

(378)

(385)

Tools, furniture and fixtures

Land
Construction in progress
OtherAccumulated depreciation
Other, net

5471

36,32836,740Intangible assets
Trademark right

1,570

1,471

Goodwill
Other

2,876
2,392

2,677
2,433

Total intangible assets

6,840

6,583

Investments and other assets
Investment securities

4643

Shares of subsidiaries and associates
Long-term loans receivable

2,647
1,802

2,647
1,782

Lease and guarantee deposits
Deferred tax assets

24,961
3,087

25,038
3,061

Other
Allowance for doubtful accounts

634
(17)

631
(17)

Total investments and other assets

33,162

33,186

Total property, plant and equipment

Total non-current assets
Total assets

376,330

76,510296,941

303,226

(Millions of yen)
As of February 28, 2019

As of May 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

13,877

19,839

Short-term loans payable
Income taxes payable

2,189
7,721

2,414
5,671

Provision for bonuses
Provision

915
361

1,544
263

23
1,227

18566

Other

9,264

10,747

Total current liabilities

35,58041,066

Net defined benefit liability
Asset retirement obligations

703
377

765
395

Other964

952

Asset retirement obligations
Notes payable - facilities

Non-current liabilities

Total non-current liabilities

2,045

2,113

37,62643,180Capital stock
Capital surplus

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

205,591(2)

206,737(2)

Total shareholders' equity

249,542

250,687

86

Foreign currency translation adjustment

8,825

8,308

Total accumulated other comprehensive income

8,833

8,315Total 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

4938

1,042

259,315260,046

296,941

303,226

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, 2018

May 31, 2019

Net sales
Cost of sales

70,02931,906

74,64834,923Gross profit38,122

39,725837

955

Advertising expenses
Warehousing expenses

1,567
816

1,536
832

Directors' compensations, salaries and allowances
Provision for bonuses

6,527
744

7,095
665

98
943

109
984

Rents
Depreciation

7,271
1,074

7,174
1,134

Utilities expenses
Commission fee

515
1,504

527
1,779

444
208

453
197

Other

1,791

1,962

Total selling, general and administrative expenses

24,34725,41013,775

14,31539

46

Rent Income for house
Advertising medium income

286
11258
10

Other

230

64

Total non-operating income

567

380

Interest expensesForeign exchange losses

212

160

Rent expenses
Other116
3123
7

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

Total non-operating expenses
Ordinary profit

5134

192

14,207

14,502

(Millions of yen)

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

Three months endedThree months ended

May 31, 2018

May 31, 2019
53–

53–

35

20

Impairment loss
Other3
1

13–

Total extraordinary losses

40

34

Profit before income taxes

14,22014,467

Income taxes - current

4,628

4,555

Income taxes - deferred

(46)

(2)

Total income taxes

4,581

4,552

Profit

9,638

9,915

61

103

9,577

9,811

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

Three months ended

Three months ended

May 31, 2018

May 31, 2019
9,638

9,915

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(0)(2,856)(1)(516)

Total other comprehensive income(2,856)

(517)

6,781

9,397

6,749

9,293

31103

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

7