Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2020 (Q1 FY2021)(Based on Japanese GAAP)
July 28, 2020
Company name:
ABC-MART, INC.
Stock exchange listing: Tokyo
Stock code:
2670
URL https://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 30, 2020
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, 2020 (from March 1, 2020 to May 31, 2020)(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, 2020
43,609 (41.6)
1,335 (90.7)
1,780 (87.7)
1,058 (89.2)
Three months ended May 31, 2019
74,648
6.6
14,315
3.9
14,502
2.1
9,811
2.4
(Note) Comprehensive income:Three months ended May 2020 952 million yen (△89.9%)
Three months ended May 2019 9,397 million yen (38.6%)
Earnings per share

Diluted earnings per share

Yen
12.82
118.88Three months ended May 31, 2020Three months ended May 31, 2019

Yen––(2) Consolidated financial position
Total assets
As of May 31, 2020
As of February 29, 2020
(Reference) Shareholders’ Equity:
As of May 31, 2020

Net assets

Millions of yen
302,728
311,084

Equity ratio

Millions of yen
265,746
271,809

264,559 million yen As of February 28, 2020

Net assets per share%
87.4
87.0

Yen
3,205.26
3,279.24

270,665 million yen

2. Cash dividends
Annual dividends per share

Year ended February 29, 2020
Year ending February 28, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
85.00

Yen–

Yen
85.00

Yen
170.00

85.00

–

85.00

170.00Year ending February 28, 2021 (Forecast)(Note) Revisions to dividend forecasts published most recently: None

Total

3. Forecast of consolidated financial results for the year ending February 28, 2021 (from March 1, 2020 to February 28, 2021)
Consolidated earnings forecast for the fiscal year ending February 28, 2021, has not yet disclosed at this time because it is difficult to make aproper and reasonable calculation.

13. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2020(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
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo
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, 2020

82,539,646 shares As of February 29, 2020

82,539,646 shares

Number of treasury shares at the end of the period
As of May 31, 2020

470 shares As of February 29, 2020

470 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2020

82,539,176 shares Three months ended May 31, 201982,532,002 shares

THIS QUARTERLY CONSOLIDATED FINANCIAL RESULTS STATEMENT IS EXEMPT FROM THE QUARTERLY REVIEWPROCEDURES.
FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe consolidated and non-consolidated business forecasts the fiscal year ending February 28, 2021, have not been determined because it isdifficult to reasonably calculate the impact of the new coronavirus at this stage. We will announce it as soon as it is possible to disclose ourbusiness forecast.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 29, 2020

As of May 31, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade149,344
10,493

121,470
9,824

Inventories
Other68,011
5,990

74,002
5,195(36)(46)233,803

210,446

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

31,55932,748

Accumulated depreciation(16,789)(17,002)

Buildings and structures, net

14,77015,746

14,935

14,917

Accumulated depreciation(9,643)(9,757)

Tools, furniture and fixtures, net

5,292

5,159

17,02916,955

372
452

518
454

(397)

(394)

Tools, furniture and fixtures

Land
Construction in progress
Other
Accumulated depreciation
Other, net

5560

37,52038,439Intangible assetsTrademark right

1,162

1,059

Goodwill
Other

2,054
2,697

1,846
2,782

Total intangible assets

5,914

5,688

Investments and other assets
Investment securities

33

15,667

Shares of subsidiaries and associates
Long-term loans receivable

2,647
1,660

2,647
1,640

Leasehold and guarantee deposits
Deferred tax assets

25,522
3,357

25,0302,515

Other
Allowance for doubtful accounts

639
(17)

668
(16)

Total investments and other assets

33,845

48,154

Total property, plant and equipment

Total non-current assets
Total assets

377,280

92,282311,084

302,728

(Millions of yen)
As of February 29, 2020

As of May 31, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade16,413

13,393

Short-term borrowings
Income taxes payable

2,216
7,150

1,372
7,831

Provision for bonuses
Provisions

985
219

1,634
164

23
1,045

14
1,619

Asset retirement obligations
Notes payable - facilities
Other

9,114

8,852

Total current liabilities

37,17034,883Retirement benefit liability
Asset retirement obligations

799
453

839
446

Other852

812

Non-current liabilities

Total non-current liabilities

2,105

2,099

39,27536,982

Share capital
Capital surplus

19,972
24,043

19,972
24,043Retained earnings
Treasury shares

219,616(2)

213,659(2)

Total shareholders' equity

263,630

257,6734

1,973

Foreign currency translation adjustment

7,030

4,912

Total accumulated other comprehensive income

7,035

6,886

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 assets4

1,143

1,186

271,809265,746

311,084

302,728

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, 2019

May 31, 2020

Net sales
Cost of sales

74,64834,92343,60921,110Gross profit

39,72522,498955

775

Advertising expenses
Storage costs

1,536
832

1,413
784

Remuneration, salaries and allowances for directors (and otherofficers)

7,095

6,021

665
109

710
119

Legal and other welfare expenses
Rent expenses on land and buildings

984
7,174

1,049
5,156

Depreciation
Utilities expenses

1,134
527

1,243
428

Commission expenses
Taxes and dues

1,779
453

1,273
373

Amortization of goodwill
Other

197
1,962

195
1,616

Total selling, general and administrative expenses

25,41021,162

14,315

1,335Interest income
Dividend income

46–

30
222

Rent Income for house
Advertising medium income

258
10238
8

Other

64

115

Total non-operating income

380615Interest expenses
Foreign exchange losses

160

142

Rental expenses
Other

123
7114
11

Total non-operating expenses

192

170

14,502

1,780

Selling, general and administrative expenses
Packing and transportation costs

Provision for bonuses
Retirement benefit expenses

Operating profit
Non-operating income

Non-operating expenses

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
Impairment loss
Total extraordinary losses

Three months ended

Three months ended

May 31, 2019

May 31, 2020–1–

12033

13

3

34

37

Profit before income taxes

14,467

1,744

Income taxes - current
Income taxes - deferred

4,555
(2)

686
(56)

Total income taxes

4,552

630

Profit

9,915

1,114

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

6103

56

9,811

1,058

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, 2019

May 31, 20209,915

1,114

(1)
(516)

1,969
(2,131)

(517)

(162)

9,397

952

9,293

909

103

42

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

7