Summary of Consolidated Financial Results
for the Six Months Ended August 31, 2016(Q2 FY2017)(Based on Japanese GAAP)
October 5, 2016
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:
October 6, 2016
Scheduled date to commence dividend payments:
November 14, 2016
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 six months ended August 31, 2016 (from March 1, 2016 to August 31, 2016)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended August 31, 2016
123,298
2.4
24,0250.624,433
0.6
16,23610.7
Six months ended August 31, 2015
120,433
11.5
23,873
1.7
24,295
2.1
14,664
3.7(Note) Comprehensive income:Six months ended August 2016 10,173 million yen (△31.7%)
Six months ended August 2015 14,899 million yen (9.1%)
Earnings per share

Diluted earnings per share

Yen
196.73191.50Six months ended August 31, 2016
Six months ended August 31, 2015

Yen–177.72(2) Consolidated financial position
Total assets
As of August 31, 2016
As of February 29, 2016
(Reference) Shareholders’ Equity:
As of August 31, 2016

Net assets

Millions of yen
242,554
238,575
208,378 million yen

Equity ratio

Net assets per share

Millions of yen
208,874
203,652

%
85.9
85.1

As of February 29, 2016

203,131 million yen

Yen2,524.83
2,461.25

2. Cash dividends
Annual dividends per share

Year ended February 29, 2016
Year ending February 28, 2017

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
60.00
60.00

Yen–

Yen
60.00

Yen
120.00–60.00

120.00Year ending February 28, 2017 (Forecast)(None) Revisions to dividend forecasts published most recently: NoTotal

3. Forecast of consolidated financial results for the year ending February 28, 2017 (from March 1, 2016 to February 28, 2017)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
240,500
1.0
42,0601.3
42,8601.6
27,8806.7
337.81(None) Revisions to financial forecasts published most recently: Yes14. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2016(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:
Yes
No
Changes in accounting policies due to other reasons:
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 August 31, 2016

82,532,416 shares As of February 29, 2016

82,532,416 shares

Number of treasury shares at the end of the period
As of August 31, 2016

393 shares As of February 29, 2016

393 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2016

82,532,023 shares Six months ended August 31, 2015

76,575,475 sharesNOTICE 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, 2017 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 ofAssets
Current assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
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, netTools, 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

February 29, 2016

As ofAugust 31, 2016

100,748
8,147
54,503
1,864
4,009
(24)

105,741
7,620
54,604
1,864
4,416
(22)

169,249

174,223

25,672(12,906)

26,306(13,544)

12,766

12,762

9,540

9,036

(6,447)(6,170)

3,092

2,865

14,728
1,567
438
(368)

15,987
123
438
(374)

69

63

32,22331,802

2,563
6,236
2,339

2,403
4,926
1,721

11,1399,051

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

552
102
2,243
21,809
1,272
(16)

487
2,647
2,185
20,9031,305(51)

Total investments and other assets

25,96327,477

Total non-current assets
Total assets

369,326

68,331

238,575

242,554

(Millions of yen)
As ofLiabilities
Current liabilitiesNotes 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
OtherFebruary 29, 2016

As ofAugust 31, 2016

10,675
3,191
500
7,778
831
424
19892
7,661

12,049
1,654
–
8,435
819
325
5909
6,846

Total current liabilities

31,97531,047

Non-current liabilities
Net defined benefit liability
Asset retirement obligations
Other799
312
1,835

772
301
1,557

Total non-current liabilities

2,947

2,632

Total liabilities

34,92333,679Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

19,972
23,978148,175(2)

19,972
23,978
159,460(2)

192,125

203,409

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

Total shareholders' equity(2)
11,0093
4,965

Total accumulated other comprehensive income

11,006

4,969

520

495

203,652

208,874

238,575

242,554

Non-controlling 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)Six months ended
August 31, 2015

Six months ended
August 31, 2016

Net sales
Cost of sales

120,433
54,341

123,298
56,158Gross profit

66,091

67,140

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

1,295
3,171
1,273
11,650
390
803
181
1,589
11,515

1,395
3,050
1,296
12,043
361
820
213
1,637
12,585

Depreciation
Utilities expenses
Commission fee
Taxes and dues
Amortization of goodwill
Other

2,109
1,113
2,358
597
663
3,504

2,018
1,050
2,399
612
433
3,193

Total selling, general and administrative expenses

42,218

43,114

Operating income

23,87324,025Non-operating income
Interest income
Foreign exchange gains
Rent Income
Advertising medium income
Other

78–386
39
109

62
21
372
2579Total non-operating income

613

561

2636109
185–
80
67

191

153

24,29524,433Non-operating expenses
Interest expenses
Foreign exchange losses
Rent expenses
Other
Total non-operating expenses
Ordinary income5(Millions of yen)Six months ended
August 31, 2015
Extraordinary income
Gain on sales of non-current assets

Six months ended
August 31, 2016
1,361

1

1,361

1690
73
1,563
––
56
163
4

2,327

225

Income before income taxes and minority interests

23,32924,209

Income taxes - current
Income taxes - deferred

8,732(116)8,074(142)

Total income taxes

8,616

7,932

Profit

14,713

16,277

Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses

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

649

40

14,664

16,236

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
August 31, 2015
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Six months ended
August 31, 2016

14,713

16,277(1)
187

5(6,109)186(6,103)

14,89910,173

14,833

10,19866(25)

Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2015
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 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 - trade
Other, net

Six months ended
August 31, 2016

23,329
2,109
100
1(79)
26
31(598)1,563(58)(7,039)(2,799)(2,050)24,2092,018(9)38(62)
5(10)55
163(906)(2,375)2,010
674Subtotal

14,53725,812

Interest and dividend income received
Interest expenses paid
Income taxes paid

75(26)(9,749)54(5)(7,458)Net cash provided by (used in) operating activities

4,836

18,402

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
Purchase of investment securities
Purchase of shares of subsidiaries and associates
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

(553)
548
(2,710)
9,737
(206)
(69)
(548)
–
(110)
141
(885)
203
(62)
46

–
–
(2,201)
2
(216)
(34)
–
(2,544)(126)
187(1,135)
644
(68)
99

Net cash provided by (used in) investing activities

5,530(5,393)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other payments(2,793)(500)(4,514)(12)(1,517)(500)(4,948)(10)Net cash provided by (used in) financing activities(7,819)(6,977)

Effect of exchange rate change on cash and cash equivalents

(62)

(948)

Net increase (decrease) in cash and cash equivalents

2,484

5,083

Cash and cash equivalents at beginning of period

95,807

100,501

Cash and cash equivalents at end of period

98,291

105,5848