Summary of Consolidated Financial Results
for the Year Ended February 28, 2014
(Based on Japanese GAAP)
April 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 of ordinary general meeting of shareholders:
May 28, 2014
Scheduled date to file Securities Report:
May 29, 2014
Scheduled date to commence dividend payments:
May 29, 2014
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, 2014 (from March 1, 2013 to February 28, 2014)(1) Consolidated financial results
Percentages indicate year-on-year changes
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2014
188,045
18.0
34,126
12.3
34,81413.2
19,989
15.6
Year ended February 28, 2013
159,418
13.3
30,375
11.6
30,747
8.3
17,297
10.3(Note) Comprehensive income:Year ended February 2014 26,075 million yen (24.7%) Year ended February 2013 20,916 million yen (38.2%)
Diluted net income
Ordinary
Operating
Net income per share
Net income/equity
per share
income/total assets income/Net sales
Yen
Yen
%
%
%
Year ended February 28, 2014
265.48242.33
16.6
18.8
18.1
Year ended February 28, 2013
229.73228.30
17.2
20.9
19.1
(Reference) Equity in earnings of affiliated companies:
Year ended February 2014 - million yen
Year ended February 2013 - million yen(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
Millions of yen
Millions of yen%
Yen
As of February 28, 2014
196,881
131,91966.8
1,747.10
As of February 28, 2013
174,159
109,76462.9
1,453.95(Reference) Shareholders’ Equity:
As of February 28, 2014 131,546 million yen
As of February 28, 2013 109,474 million yen(3) Consolidated cash flows
Cash and cash equivalents
Cash flows from
Cash flows from
Cash flows fromat end of period
operating activities
investing activities
financing activities
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Year ended February 28, 2014
22,997(7,573)(5,916)78,755
Year ended February 28, 201315,395(17,203)
28,20968,772
2. Cash dividends
Ratio of
Dividend
Total cash
topayout ratio dividends
dividends (Total) (Consolidated)
net assets(Consolidated)

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

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended February 28, 2013
Year ended February 28, 2014

–
–

22.00
25.00

–
–

28.00
30.00

50.00
55.00

3,764
4,141

21.8
20.7

3.7
3.4

Year ending February 28, 2015 (Forecast)

–

30.00

–

30.00

60.00

21.0

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
285.551

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2014(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
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Yes
Restatement of prior period financial statements after error corrections: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, 2014

75,294,429 shares As of February 28, 201375,294,429 shares

Number of treasury shares at the end of the period
As of February 28, 2014

164 shares As of February 28, 2013164 shares

Average number of shares during the period
Year ended February 28, 2014

75,294,265 shares Year ended February 28, 201375,294,265 shares(Reference) Summary of Nonconsolidated Financial Statements
1.Nonconsolidated financial results for the year ended February 28, 2014 (from March 1, 2013 to February 28, 2014)(1) Nonconsolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended February 28, 2014
Year ended February 28, 2013

Millions of yen
145,387
131,840

Operating income
%
10.3
8.0

Millions of yen
30,951
28,377%
9.1
16.8

Ordinary income
Millions of yen
31,90729,002

%
10.0
13.4

Net income
Millions of yen
18,105
16,214

%
11.7
17.2

Diluted net income
per share
Yen
Yen
240.47219.50215.35214.01

Net income per share
Year ended February 28, 2014
Year ended February 28, 2013
(2) Nonconsolidated financial position
Total assets

Net assets

Millions of yen
172,708
159,146

Equity ratio

Millions of yen
114,833
100,708

Net assets per share
%
66.5
63.3

Yen
1,525.13
1,337.53

As of February 28, 2014
As of February 28, 2013
(Reference) Shareholders’ Equity:
As of February 28, 2014 114,833 million yen
As of February 28, 2013 100,708 million yen
2. Forecast of nonconsolidated financial results for the year ending February 28, 2015 (from March 1, 2014 to February 28, 2015)
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
78,1405.8
17,770(0.1)
10,2204.5
135.73
August 31, 2014
Full year
153,300
5.4
32,5502.0
18,8003.8
249.69NOTICE REGARDING AUDIT PROCEDURES FOR THE CONSOLIDATED FINANCIAL RESULTS
This consolidated financial results statement is exempt from the audit procedures based upon the Financial Instruments and Exchange Act. At this time of
disclosure of this consolidated financial results statements, the audit procedure 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Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of February 28, 2013
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Currency options
Deferred tax assets
Other
Allowance for doubtful accounts

As of February 28, 2014

68,852,158
5,064,083
32,682,063
44,833
485,939
1,314,421
1,166,442
3,480,723(23,645)

78,884,221
6,463,290
38,962,423
13,583479,689–
1,414,815
3,355,309(30,704)

113,067,021

129,542,628

20,886,196

22,758,728

Accumulated depreciation(9,553,405)(10,980,400)

Buildings and structures, net

11,332,790

11,778,327

6,266,116(3,604,799)

8,012,820(4,923,220)

Total current assets
Non–current assets
Property, plant and equipment
Buildings and structures

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

2,661,316

3,089,600

17,483,893
60,071
468,848(418,561)

17,696,636
90,871
593,253(463,772)

50,286

129,480

31,588,359

32,784,917

2,465,569
6,821,704
1,506,138

2,682,855
7,195,840
1,770,403

10,793,412

11,649,099

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Lease and guarantee deposits
Other
Allowance for doubtful accounts

109,651
84,175
16,494,299
2,022,501–

125,485
94,075
18,960,429
3,725,535(1,138)

Total investments and other assets

18,710,627

22,904,387

LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Trademark right
Goodwill
Other
Total intangible assets

Total non–current assets
Total assets

3

61,092,399

67,338,404

174,159,421

196,881,032

(Thousands of yen)
As of February 28, 2013
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 February 28, 2014

7,477,486
4,135,826
1,002,800
7,455,270
642,716
178,038
17,861
936,279
4,114,601

8,551,245
3,278,312
1,002,800
7,113,474
654,690
234,480
26,927778,252
5,722,294

25,960,880

27,362,478

33,000,000

33,000,000

2,502,800

1,500,000

Provision
Asset retirement obligations
Currency options
Other

798,867
218,207265,084
1,648,895

658,157
243,579–
2,197,632

Total non–current liabilities

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

38,433,856

37,599,368

Total liabilities

64,394,736

64,961,847

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

3,482,930
7,488,686
96,311,831(522)

3,482,930
7,488,686
112,310,302(522)

107,282,926

123,281,397

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

13,432
2,177,708

23,2488,241,814

Total accumulated other comprehensive income

2,191,141

8,265,062

Total shareholders' equity

Minority interests
Total net assets
Total liabilities and net assets

4

290,616

372,724

109,764,684

131,919,185

174,159,421

196,881,032

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
February 28, 2013

Fiscal year ended
February 28, 2014

Net sales
Cost of sales

159,418,140
68,109,105

188,045,018
84,317,067

Gross profit

91,309,034

103,727,951

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

2,210,771
6,931,745
1,293,183
16,431,626
1,083,784
640,700
2,113,560
15,326,723
3,250,878
1,793,573

2,162,656
7,263,553
2,044,219
18,737,865
1,139,234
647,1092,418,684
17,738,673
3,885,923
2,050,493

Commission fee
Taxes and dues
Provision of allowance for doubtful accounts
Amortization of goodwill
Other2,677,576
668,623
1,820
549,441
5,959,908

3,461,581
873,247796
1,023,343
6,154,542

Total selling, general and administrative expenses

60,933,917

69,601,927

30,375,117

34,126,024

Non–operating income
Interest income
Foreign exchange gains
Gain on valuation of derivatives
Rent income
Advertising medium income
Other

46,72980,501
106,753
481,790
57,450204,076

79,57460,923–
664,362
62,706
321,647

Total non–operating income

977,302

1,189,214

74,012271,275
259,858

53,899347,882
99,377605,146

501,160

30,747,273

34,814,079

Operating income

Non–operating expenses
Interest expenses
Rent expenses
Other
Total non–operating expenses
Ordinary income5(Thousands of yen)
Fiscal year ended
February 28, 2013
Extraordinary income
Gain on sales of non–current assets
Gain on cancellation of derivatives
Total extraordinary income
Extraordinary losses
Loss on sales of non–current assets
Loss on retirement of non–current assets
Loss on liquidation of business
Loss on valuation of golf club membership
Loss on cancellation of derivatives
Impairment loss
Loss on abandonment of goods
Total extraordinary losses

Fiscal year ended
February 28, 2014
545
–

935
1,713

545

2,648

343
114,733
65,595
7,075–
408,046––
175,150––
1,051,049
263,840
95,575595,794

1,585,615

Income before income taxes and minority interests

30,152,024

33,231,112

Income taxes – current

13,126,285

13,598,256

Income taxes – deferred(220,612)(319,740)

Total income taxes

12,905,672

13,278,516

Income before minority interests

17,246,351

19,952,596(51,225)(36,470)

17,297,577

19,989,067

Minority interests in loss
Net income

6Consolidated statements of comprehensive income (cumulative)(Thousands of yen)
Fiscal year ended
February 28, 2013
Income before minority interests
Other comprehensive income
Valuation difference on available–for–sale securities
Foreign currency translation adjustment
Total other comprehensive income

Fiscal year ended
February 28, 201417,246,351

19,952,596

19,1783,651,247

9,815
6,113,174

3,670,426

6,122,990

Comprehensive income

20,916,777

26,075,586

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

20,926,789(10,012)26,062,988
12,5987

Consolidated statements of changes in net assets
Fiscal year ended February 28, 2013
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,482,930

Retained earnings

7,488,686

82,402,496

Total shareholders'

Treasury shares

equity(522)

93,373,591

Changes of items during period
Dividends of surplus(3,388,241)(3,388,241)

Net income

17,297,577

17,297,577

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

13,909,335–

13,909,335

3,482,930

7,488,686

96,311,831(522)

107,282,926

Accumulated other comprehensive income
Valuation difference
on available–for–salesecurities
Balance at beginning of current
period(5,746)

Foreign currencytranslation adjustment(1,432,324)

Total accumulated
other comprehensive

Minority interests

Total net assets

income(1,438,071)

300,628

92,236,148

Changes of items during period
Dividends of surplus(3,388,241)

Net income

17,297,577

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

19,1783,610,033

3,629,212(10,012)3,619,200

19,1783,610,033

3,629,212(10,012)

17,528,535

13,432

2,177,708

2,191,141

290,616

109,764,684

8

Fiscal year ended February 28, 2014
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,482,930

Retained earnings

7,488,686

96,311,831

Total shareholders'

Treasury shares

equity(522)

107,282,926

Changes of items during period
Dividends of surplus(3,990,596)(3,990,596)

Net income

19,989,067

19,989,067

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

15,998,471–

15,998,471

3,482,930

7,488,686

112,310,302(522)

123,281,397

Accumulated other comprehensive income
Valuation difference
on available–for–salesecurities
Balance at beginning of current
period13,432Foreign currencytranslation adjustment
2,177,708

Total accumulated
other comprehensive

Minority interests

Total net assets

income2,191,141

290,616

109,764,684

Changes of items during period
Dividends of surplus(3,990,596)

Net income

19,989,067

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

9,815

6,064,106

6,073,921

82,1086,156,029

9,815

6,064,106

6,073,921

82,10822,154,500

23,2488,241,814

8,265,062

372,724

131,919,185

9Consolidated statements of cash flows(Thousands of yen)
Fiscal year ended
February 28, 2013

Fiscal year ended
February 28, 2014

Cash flows from operating activities
Income 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 securities
Loss (gain) on valuation of derivatives
Loss (gain) 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

30,152,024
3,250,878
62,672(12,264)(47,453)
74,012(104,166)
16,582(106,753)–
114,531
408,046(620,481)(5,362,064)

33,231,112
3,885,923
8,583
3,636
(80,297)
53,899(85,952)––
1,049,336
174,214
263,840(853,310)(4,455,464)

Increase (decrease) in notes and accounts payable – trade
Other, net(915,849)
723,693659,116
3,002,399

Subtotal

27,633,408

36,857,037

Interest and dividend income received
Interest expenses paid
Income taxes paid

32,920(76,415)(12,193,959)

56,908(52,708)(13,863,300)

Net cash provided by (used in) operating activities

15,395,953

22,997,936(5,400)120,526(4,093,447)
5,137(419,560)(55,935)(185,000)
83,062–
33,236(3,862,523)
4,918(466,501)(92,037)(1,770,000)
85,233(10,999,115)–(2,562,575)
1,011,240(240,663)
138,055(1,993,985)
586,420(114,890)
16,695(17,203,674)(7,573,433)

864,471(2,259,060)(3,384,043)–(972,001)(1,002,800)(3,989,669)
69,51033,000,000–

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for store removal
Payments of loans receivableCollection of loans receivable
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
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
Repayments of long–term loans payable
Cash dividends paid
Proceeds from share issuance to minority shareholders
Proceeds from issuance of bonds with subscription rights tosharesOther payments
Net cash provided by (used in) financing activities

10(11,371)(21,823)

28,209,995(5,916,784)

(Thousands of yen)
Fiscal year ended
February 28, 2013
Effect of exchange rate change on cash and cash equivalents

Fiscal year ended
February 28, 2014

378,867

475,789

Net increase (decrease) in cash and cash equivalents

26,781,142

9,983,508

Cash and cash equivalents at beginning of period

41,990,939

68,772,082

Cash and cash equivalents at end of period

68,772,082

78,755,590

11