Summary of Consolidated Financial Results
for the Six Months Ended August 31, 2022 (Q2 FY2023)(Based on Japanese GAAP)
October 12, 2022
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, Accounting Department Manager Yasuo Ishii
TEL 03-3476-5452
Scheduled date to file Quarterly Securities Report:
October 13, 2022
Scheduled date to commence dividend payments:
November 14, 2022
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, 2022 (from March 1, 2022 to August 31, 2022)(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%Six months ended August 31, 2022136,191
12.3
19,99539.8
20,501
38.9
13,31727.3
Six months ended August 31, 2021
121,301
18.7
14,30667.5
14,76460.7
10,46388.8(Note) Comprehensive income:Six months ended August 31, 2022 23,586 million yen (67.8%) Six months ended August 31, 2021 14,056 million yen (115.8%)
Earnings per share

Diluted earnings per share

Yen
Yen
Six months ended August 31, 2022
161.35–Six months ended August 31, 2021
126.77–(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, revised on March 31, 2020), etc.
from the beginning of the three months ended May 31, 2022.
(2) Consolidated financial position
Total assets
As of August 31, 2022
As of February 28, 2022
(Reference) Shareholders’ Equity:
As of August 31, 2022

Net assets

Millions of yen
344,123
317,720
299,593 million yen

Equity ratio

Net assets per share

Millions of yen
301,521284,881

%
87.1
89.2

As of February 28, 2022

283,298 million yen

Yen3,629.72
3,432.30

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
85.00
85.00

Yen–

Yen
85.00

Yen
170.00–85.00170.00Year ending February 28, 2023 (Forecast)(Note) Revisions to dividend forecasts published most recently: NoTotal

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
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
Full year
274,000
12.3
34,50025.7
35,30024.9
23,20033.5
281.08(Note) Revisions to financial forecasts published most recently: Yes

14. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2022
(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
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2022

82,539,646 shares As of February 28, 2022

82,539,646 shares

Number of treasury shares at the end of the period
As of August 31, 2022

552 shares As of February 28, 2022

472 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2022

82,539,148 shares Six months ended August 31, 2021

82,539,176 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 28, 2023 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, 2022

As of August 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade141,767
11,091

140,462
13,946

Securities
Inventories

10,181
59,847

12,35275,784

Other
Allowance for doubtful accounts

4,180
(145)

8,398
(174)

226,923

250,768

34,711(19,233)

35,603(19,886)

15,47815,71717,116(12,757)

19,103(14,597)

4,359

4,505

19,198293

19,306
392

438
(394)

441
(391)

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

4449

39,37339,971

393
509

198
115

Other

3,935

4,373

Total intangible assets

4,837

4,687

Investment securities
Shares of subsidiaries and associates

14,567609

17,901
614

Long-term loans receivable
Leasehold and guarantee deposits

1,450
25,9601,326
26,748Deferred tax assets
Other3,416
596

1,705
417

Total property, plant and equipment
Intangible assets
Trademark right
Goodwill

Investments and other assets

Allowance for doubtful accounts

(16)

(17)

Total investments and other assets

46,585

48,695

Total non-current assets
Total assets

3

90,796

93,354

317,720

344,123

(Millions of yen)
As of February 28, 2022

As of August 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

13,161

18,408

Short-term borrowings
Income taxes payable

1,350
4,884

3,467
6,783

Contract liabilities
Provision for bonuses

–984

912
1,015

Provisions
Asset retirement obligations

226
205

228
205

Notes payable - facilities
Other

933
9,521

780
9,223

Total current liabilities

31,26841,026

Non-current liabilities
Retirement benefit liability

313

518

Asset retirement obligations
Other

345
911

403
652

Total non-current liabilities

1,570

1,575

32,83842,601

Shareholders' equity
Share capital

19,972

19,972

Capital surplus
Retained earnings

24,043
228,162

24,043
234,464

Total liabilities
Net assets

Treasury shares

(2)

(3)

272,176

278,478

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1,991
9,131

5,935
15,180Total accumulated other comprehensive income

11,122

21,115

Total shareholders' equity
Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4

1,582

1,928

284,881

301,521317,720

344,123

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

August 31, 2021

August 31, 2022

Net sales
Cost of sales

121,301
58,329136,191
64,325Gross profit

62,971

71,866

Selling, general and administrative expenses
Packing and transportation costs

1,875

1,923

Advertising expenses
Storage costs

3,079
1,442

2,699
1,249

Remuneration, salaries and allowances for directors (and otherofficers)

12,827

13,760Bonuses
Provision for bonuses

387
1,009

390
1,013

Retirement benefit expenses
Legal and other welfare expenses

446
1,930

477
2,182

Rent expenses on land and buildings
Depreciation

13,3982,624

14,681
2,793

Utilities expenses
Commission expenses

992
3,435

1,226
3,931

Taxes and dues
Amortization of goodwill

818
385

816
441

Other

4,011

4,282

Total selling, general and administrative expenses

48,66551,871

14,30619,995

Operating profit
Non-operating income
Interest income

33

62

Dividend income
Rent Income

51525

160
444

Foreign exchange gains
Advertising medium income

52
17–17Other109112

Total non-operating income

789

796

Interest expenses
Foreign exchange losses

18–

359

Rental expenses
Other283
30

194
33

Non-operating expenses

Total non-operating expenses
Ordinary profit

5331

290

14,76420,501

(Millions of yen)

Extraordinary income
Gain on sale of non-current assets

Six months ended

Six months ended

August 31, 2021

August 31, 2022
801

16

74
261

–
43

1,137

60

102

104

Loss on valuation of investment securities
Impairment losses

–
183

305
409

Loss due to covid19

193

20

Gain on sale of investment securitiesEmployment adjustment subsidies for covid19
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

479

840

Profit before income taxes

Total extraordinary losses

15,422

19,721

Income taxes - current
Income taxes - deferred

5,026
(89)

6,470
(153)

Total income taxes

4,936

6,316

Profit10,486

13,4042386

10,463

13,317

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

Six months ended

Six months ended

August 31, 2021

August 31, 2022
10,486

13,404

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1,420
2,149

3,944
6,237

Total other comprehensive income

3,569

10,182

14,056

23,586

13,931

23,311

124

275

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

7

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months endedSix months ended

August 31, 2021

August 31, 2022
15,422

19,721

2,738
112,887
27

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income7(85)1(222)

Interest expenses
Foreign exchange losses (gains)

18(3)

3(65)

Loss (gain) on sale of investment securities
Loss (gain) on valuation of short-term and long-term

(74)

––

305

Depreciation
Increase (decrease) in provision for bonuses

investment securities
Loss (gain) on sale and retirement of non-current assets

(698)

88

Impairment losses
Decrease (increase) in trade receivables

183
976

409
(2,509)Decrease (increase) in inventories
Increase (decrease) in trade payables(3,104)(1,356)(12,982)
4,067

Other, net(1,209)(1,069)Subtotal

12,825

10,661

Interest and dividends received

436

177

Interest paid
Income taxes paid

(18)
(8,623)(2)(4,057)

Net cash provided by (used in) operating activities

4,619

6,779

Cash flows from investing activities
Payments into time deposits–(263)

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(3,308)1,901(2,536)35

Purchase of intangible assets
Purchase of investment securities(930)(1,017)(780)–

Proceeds from sale of investment securities
Payments for store removal

2,358
(128)

–
(108)

Loan advances
Proceeds from collection of loans receivable

(100)
44

(1,780)284

Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits

(536)
806

(927)
957

Other payments
Other proceeds(102)
24(236)41

Net cash provided by (used in) investing activities(989)(5,313)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings

117

2,111(7,011)–(7,011)
69(0)

(0)

Net cash provided by (used in) financing activities(6,893)(4,831)

Effect of exchange rate change on cash and cash equivalents

755

3,933

Dividends paid
Proceeds from share issuance to non-controlling shareholders
Other payments

Net increase (decrease) in cash and cash equivalents(2,507)

568

Cash and cash equivalents at beginning of period

146,454

151,770

Cash and cash equivalents at end of period

143,947

152,3388