Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2014（Q1 FY2015）(Based on Japanese GAAP)
July 9, 2014
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 10, 2014
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, 2014 (from March 1, 2014 to May 31, 2014)(1) Consolidated financial results (cumulative)
Percentages indicate year-on-year changes
Net sales
Millions of yen
56,712
48,165

Operating income% Millions of yen
17.7
13,161
21.2
10,090Three months ended May 31, 2014
Three months ended May 31, 2013
(Note) Comprehensive income:Three months ended May 2014 6,854 million yen (△3.2%)
Net income per share

Net income% Millions of yen
29.3
7,845
24.7
5,377

%
45.9
15.3

Three months ended May 2013 7,082 million yen (29.1%)
Diluted net income per shareYen
104.1971.42

Three months ended May 31, 2014
Three months ended May 31, 2013

Ordinary income% Millions of yen
30.4
13,313
20.6
10,297

Yen
95.11
65.19

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen
Millions of yen
As of May 31, 2014
208,951
136,515
As of February 28, 2014
196,881
131,919(Reference) Shareholders’ Equity:
As of May 31, 2014 136,141 million yen
As of February 28, 2014 131,546 million yen

Net assets per share%
65.2
66.8

Yen
1,808.12
1,747.10

2. Cash dividends
Annual dividends per share

Year ended February 28, 2014
Year ending February 28, 2015

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
25.00

Yen–

Yen
30.00

Yen
55.00

30.00

–30.0060.00

Year ending February 28, 2015 (Forecast)(None) Revisions to dividend forecasts published most recently: NoneTotal

3. Forecast of consolidated financial results for the year ending February 28, 2015 (from March 1, 2014 to February 28, 2015)
Percentages indicate year-on-year changes
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
100,800
7.4
18,900(0.5)
19,1500.1
11,3206.6
150.34
August 31, 2014
Full year
203,000
8.0
35,8004.9
36,3004.3
21,5007.6
285.55(None) Revisions to financial forecasts published most recently: None14. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2014(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
No
Changes 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:
NoRestatement 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, 2014

75,294,429 shares As of February 28, 2014

75,294,429 shares

Number of treasury shares at the end of the period
As of May 31, 2014

164 shares As of February 28, 2014

164 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2014

75,294,265 shares Three months ended May 31, 201375,294,265 shares

NOTICE REGARDING QUARTERLY REVIEW PROCEDURES FOR THE CONSOLIDATED FINANCIAL RESULTS
This quarterly consolidated financial results statement is exempt from the quarterly review procedures based upon the Financial Instruments and Exchange Act.
At this time of disclosure of this quarterly consolidated financial results statement, the quarterly financial statement review procedures based upon the Financial
Instruments and Exchange Act has not been completed.

FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe forecast for the year ending February 28, 2015 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

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2014
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non–current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Trademark right
Goodwill
Other
Total intangible assets

As of May 31, 2014

78,884
6,463
38,962
13
479
1,414
3,355
(30)

81,708
7,781
42,897
12
538
1,405
5,808
(34)

129,542

140,118

22,758(10,980)

24,052(11,343)

11,77812,7098,012(4,923)

7,931(5,044)

3,089

2,886

17,696
90
593
(463)

18,984
120
591
(477)

129

114

32,78434,816

2,682
7,195
1,770

2,542
6,747
1,654

11,64910,944

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long–term loans receivable
Lease and guarantee deposits
Other
Allowance for doubtful accounts

125
94
2,575
18,960
1,150
(1)

129
102
2,589
19,073
1,178(1)

Total investments and other assets

22,90423,072

Total non–current assets
Total assets

3

67,33868,833

196,881208,951

(Millions of yen)
As of February 28, 2014
Liabilities
Current liabilities
Notes and accounts payable – trade
Short–term loans payable
Current portion of long–term loans payable
Income taxes payable
Provision for bonuses
Provision
Asset retirement obligations
Notes payable – facilities
Other

As of May 31, 2014

8,551
3,278
1,002
7,113
654
234
26
778
5,722

15,618
3,446
1,001
5,796
1,144
215
10
1,209
6,482

27,362

34,92533,00033,000

1,500

1,500

Provision
Asset retirement obligations
Other658
243
2,197

672
251
2,086

Total non–current liabilities

37,59937,511

Total liabilities

64,961

72,436

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

3,482
7,488
112,310
(0)

3,482
7,488
117,896(0)

Total current liabilities
Non–current liabilities
Convertible bond–type bonds with subscription rights tosharesLong–term loans payable

123,281

128,867

Accumulated other comprehensive income
Valuation difference on available–for–sale securities
Foreign currency translation adjustment

Total shareholders' equity

23
8,241

25
7,247

Total accumulated other comprehensive income

8,265

7,273

372

373

131,919

136,515

196,881

208,951

Minority interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
May 31, 2013

Three months ended
May 31, 2014

Net sales
Cost of sales

48,165
20,73556,712
24,346Gross profit

27,42932,366

Selling, general and administrative expenses
Packing and transportation expenses
Advertising expenses
Warehousing expenses
Directors' compensations, salaries and allowances
Provision for bonuses
Legal and employee benefits expenses
Rents
Depreciation
Utilities expenses

519
2,067
476
4,623
469
576
4,404
911
452

597
2,113
634
5,074
504
632
5,074
949
509

Commission fee
Taxes and dues
Provision of allowance for doubtful accounts
Amortization of goodwill
Other

834
198
2240
1,559

1,027
204
4274
1,605

Total selling, general and administrative expenses

17,33819,204

10,09013,161Non–operating income
Interest incomeForeign exchange gains
Rent income for house
Gain on valuation of derivatives
Advertising medium income
Other11–
143
108
1267

30
4179–
1662

Total non–operating income

342

293

18376
37

10–
86
44

135

142

10,297

13,313Operating income

Non–operating expenses
Interest expenses
Foreign exchange losses
Rent expenses
Other
Total non–operating expenses
Ordinary income5(Millions of yen)Three months ended
May 31, 2013
Extraordinary income
Gain on sales of non–current assets

Three months ended
May 31, 2014
0–0–3827
1,051

49
51
–

1,116100

Income before income taxes and minority interests

9,181

13,212

Income taxes – current
Income taxes – deferred

3,799
35,379(27)Total income taxes

3,803

5,351

Income before minority interests

5,377

7,860

015

5,377

7,845

Total extraordinary income
Extraordinary losses
Loss on retirement of non–current assets
Impairment loss
Loss on cancellation of derivatives
Total extraordinary losses

Minority interests in income
Net income

6Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
May 31, 2013
Income before minority interests
Other comprehensive income
Valuation difference on available–for–sale securities
Foreign currency translation adjustment
Total other comprehensive income

Three months ended
May 31, 2014

5,377

7,860

3
1,700

2(1,008)

1,704(1,006)Comprehensive income

7,082

6,854

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

7,065
16

6,853
17

Consolidated statements of cash flows(Millions of yen)Three months ended
May 31, 2013
Cash flows from operating activitiesIncome before income taxes and minority interests
Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of derivatives
Loss on cancellation of derivatives
Loss (gain) on sales and retirement of non–current assets
Impairment loss
Decrease (increase) in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable – tradeThree months ended
May 31, 2014

9,181
9114522(11)18(76)
(108)
1,051
38
27(2,139)(3,755)
3,780

13,212
949
490
4(30)
10(8)
––
49
51
(3,669)(4,312)
7,011

Other, net

829

1,281

Subtotal

10,203

15,039Interest and dividend income received
Interest expenses paid
Income taxes paid

6(10)(6,989)14(5)(6,591)

Net cash provided by (used in) operating activities

3,209

8,456

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for store removal
Purchase of shares of subsidiaries
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other payments
Other proceeds(1,027)
1(78)
(17)
–
(50)
21(694)188(47)
10(2,923)
–(50)
(30)
(8)
(55)
32(559)180(40)
1Net cash provided by (used in) investing activities(1,694)(3,454)

Cash flows from financing activities
Net increase (decrease) in short–term loans payable
Repayments of long–term loans payable
Cash dividends paid
Other, net(2,082)(1)(2,085)
(5)

178
(1)
(2,245)(5)Net cash provided by (used in) financing activities(4,174)(2,074)

Effect of exchange rate change on cash and cash equivalents

22

(100)

Net increase (decrease) in cash and cash equivalents(2,636)

2,828

Cash and cash equivalents at beginning of period

68,77278,755

Cash and cash equivalents at end of period

66,135

81,5838