Summary of Consolidated Financial Results
for the Six Months Ended August 31, 2013（Q2FY2014）(Based on Japanese GAAP)
October 9, 2013
Company name
ABC-MART, INC.
Stock exchange listing Tokyo
Stock Code2670
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 10, 2013
Scheduled date to commence dividend payments
November 11, 2013
Preparation of supplementary material on quarterly earnings
yes
Holding of quarterly earnings performance review
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, 2013 (from March 1, 2013 to August 31, 2013)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Net sales
Millions of yen
93,814
77,057

Operating income% Millions of yen
21.7
18,99910.5
16,758

Ordinary income% Millions of yen
13.4
19,12620.2
17,380Net income%
Six months ended August 31, 2013
7.4
Six months ended August 31, 2012
41.7
(Note) Comprehensive income:Six months ended August 2013 13,105 million yen (29.4%)
Six months ended August 2012 10,130 million yen (34.2％)
Net income per share
Diluted net income per share
Yen
141.09131.37Six months ended August 31, 2013
Six months ended August 31, 2012

% Millions of yen
10.0
10,623
31.5
9,891

Yen
128.79-(2) Consolidated financial position
Total assets
As of August 31, 2013
As of February 28, 2013
(Reference) Shareholders’ Equity:
As of August 31, 2013

Net assets

Millions of yen
188,084
174,159

Equity ratio

Millions of yen
120,761
109,764

120,476 million yen As of February 28, 2013

Net assets per share%
64.1
62.9

Yen
1,600.07
1,453.95

109,474 million yen

2. Cash dividends
Annual dividends

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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen-

Yen
22.00
25.00

Yen-

Yen
28.00

Yen
50.00

-

25.00

50.00

Year ending February 28, 2014 (Forecast)(None) Revisions to dividend forecasts published most recently: NoneTotal

3. Forecast for the year ending February 28, 2014 (from March 1, 2013 to February 28, 2014)
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
Full year
183,700
15.2
34,00011.9
34,30011.6
19,55013.0
259.65(None) Revisions to financial forecasts published most recently: Yes1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2013(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting for preparing quarterly consolidated financial statements:noyes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
Changes in accounting policies due to revisions to accounting standards and other regulations:yes
Changes in accounting policies due to other reasons:noChanges in accounting estimates:
yes
Restatement of prior period financial statements after error corrections:no(4) Number of issued shares
Total number of issued shares at the end of the period (including treasury stock)
As of August 31, 201375,294,429 shares As of February 28, 201375,294,429 shares

Number of shares of treasury stock at the end of the period
As of August 31, 2013164 shares As of February 28, 2013164 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 201375,294,265 shares Six months ended August 31, 2012

75,294,265 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, 2014 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(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 option
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Noncurrent 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

As of August 31, 2013

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

72,671,528
5,441,660
37,139,058
51,200441,536
474,155
1,196,506
5,217,036(22,525)

113,067,021

122,610,157

20,886,196(9,553,405)

22,074,626(10,276,178)

11,332,790

11,798,448

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

7,055,352(4,167,464)

2,661,316

2,887,888

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

17,542,117
213,066
555,465(438,347)

50,286

117,117

31,588,359

32,558,638

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

7,192,522
2,658,226
1,556,100

10,793,412

11,406,849

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

109,651
84,175
16,494,299
2,022,501-

115,496
84,175
17,576,604
3,733,831(1,138)

Total investments and other assets

18,710,627

21,508,969

Total property, plant and equipment
Intangible assets
Goodwill
Right of trademark
Other
Total intangible assets

Total noncurrent assets
Total assets

3

61,092,399

65,474,457

174,159,421

188,084,615

(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
Total current liabilities
Noncurrent liabilities
Convertible bond-type bonds with subscription rights toshares
Long-term loans payable
Asset retirement obligations
Currency option
Provision
Other
Total noncurrent liabilities

As of August 31, 2013

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

11,673,823
1,522,744
1,002,800
7,389,522
643,614212,009
19,676
1,494,804
4,748,458

25,960,880

28,707,453

33,000,000

33,000,000

2,502,800
218,207265,084
798,867
1,648,895

2,001,400
238,284
628,791
938,127
1,809,072

38,433,856

38,615,675

Total liabilities

64,394,736

67,323,129

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

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

3,482,930
7,488,686
104,826,870(522)

107,282,926

115,797,965

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

13,432
2,177,708

17,056
4,660,984

Total accumulated other comprehensive income

2,191,141

4,678,040

290,616

285,479

109,764,684

120,761,485

174,159,421

188,084,615

Total shareholders' equity

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)(Thousands of yen)Six months ended
August 31, 2012

Six months ended
August 31, 2013

Net sales
Cost of sales

77,057,497
31,906,758

93,814,906
40,987,242

Gross profit

45,150,738

52,827,663

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
Commission fee
Taxes and dues
Provision of allowance for doubtful accounts
Amortization of goodwill
Other1,038,023
3,197,189
563,468
7,761,803
228,396
583,086
1,007,756
7,560,062
1,393,416
861,712
1,326,087
302,901
127,989
2,440,791

1,002,329
3,309,028
995,282
9,142,626
226,936
637,153
1,189,621
8,790,040
1,877,970
998,384
1,683,284
484,4423,015
496,469
2,991,243

Total selling, general and administrative expenses

28,392,686

33,827,829

16,758,051

18,999,834

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

20,943
16,920212,385
29,330508,124
70,11833,978
8,372
311,747
26,960142,349

Operating income

Total non-operating income

857,822523,408

Non-operating expenses
Interest expenses
Rent expenses
Loss on valuation of derivatives
Other

32,966
122,445
80,13429,307
156,696
152,923
58,183

Total non-operating expenses

235,546

397,111

17,380,327

19,126,131

Ordinary income5(Thousands of yen)Six months ended
August 31, 2012

Six months ended
August 31, 2013

Extraordinary income
Gain on sales of noncurrent assets

532

37

Total extraordinary income

532

37

343
57,354
172,795-

70,314
107,550
85,725
1,051,049

230,492

1,314,640

Income before income taxes and minority interests

17,150,367

17,811,528

Income taxes-current
Income taxes-deferred

7,288,714(16,839)

7,329,212(107,781)

Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Impairment loss
Loss on abandonment of goods
Loss on cancellation of derivatives
Total extraordinary losses

Total income taxes

7,271,875

7,221,431

Income before minority interests

9,878,492

10,590,097

Minority interests in loss
Net income

6(12,936)(33,180)

9,891,429

10,623,278

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Six months ended
August 31, 2012
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income

Six months ended
August 31, 2013

9,878,492

10,590,097

6,630
41,303204,187

3,623
2,511,319

252,1212,514,943

Comprehensive income

10,130,613

13,105,040

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

10,134,337(3,724)

13,110,177(5,137)

7

Consolidated statements of cash flows(Thousands of yen)Six months ended
August 31, 2012
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of securities
Loss (gain) on valuation of derivatives
Loss on cancellation of derivatives
Loss (gain) on sales and retirement of noncurrent assets
Impairment loss
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventoriesIncrease (decrease) in notes and accounts payable-trade
Other, net

Six months ended
August 31, 201317,150,367
1,393,416
5,239(1,067)(21,667)
32,966(5,329)16,582(508,124)
57,164
172,795(963,928)(2,728,069)
298,121374,485

17,811,528
1,877,970(949)(2,503)(34,702)29,307(47,176)
152,923
1,051,049
70,277
107,550(1,743,180)(3,708,851)
3,641,563
1,927,741

Subtotal

15,272,953

21,132,549

Interest and dividends income received
Interest expenses paid
Income taxes paid

14,191(35,368)(6,438,095)

22,487(28,777)(7,425,321)

Net cash provided by (used in) operating activities

8,813,680

13,700,938(2,209,667)
4,972(100,032)(27,359)(175,000)
40,778(1,836,306)
1,458(170,754)(36,692)(1,730,000)
42,393(10,999,115)-(1,325,886)
814,675(152,166)
89,581(1,153,685)
309,689(67,248)
15,588Net cash provided by (used in) investing activities(14,039,221)(4,625,557)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Cash dividends paid
Other payments

719,703(1,751,400)(1,727,465)(1,328)(2,677,164)(501,400)(2,103,694)(11,310)

Net cash provided by (used in) financing activities(2,760,490)(5,293,569)

Effect of exchange rate change on cash and cash equivalents

28,25130,495

Net cash provided by (used in) investing activities
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 investments in subsidiaries resulting in change inscope of consolidation
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other payments
Other proceeds

Net increase (decrease) in cash and cash equivalents(7,957,779)

3,812,306

Cash and cash equivalents at beginning of period

41,990,939

68,772,082

Cash and cash equivalents at end of period

34,033,160

72,584,389

8