Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2017 (Q1 FY2018)(Based on Japanese GAAP)
July 5, 2017
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:
July 6, 2017
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, 2017 (from March 1, 2017 to May 31, 2017)(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%Three months ended May 31, 2017
68,546
3.3
13,974(2.6)
14,304
(2.1)
9,498
(1.5)
Three months ended May 31, 2016
66,3544.5
14,3507.9
14,611
8.2
9,640
21.7
(Note) Comprehensive income:Three months ended May 2017 10,079 million yen (36.9%)
Three months ended May 2016 7,363 million yen (△4.3%)
Earnings per share

Diluted earnings per share

Yen
115.09116.81Three months ended May 31, 2017
Three months ended May 31, 2016

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
266,418
253,916

As of May 31, 2017
As of February 28, 2017
(Reference) Shareholders’ Equity:
As of May 31, 2017
224,528 million yen

Equity ratio

Millions of yen
225,208
220,080

As of February 28, 2017

Net assets per share%
84.3
86.4

Yen
2,720.50
2,659.27

219,474 million yen

2. Cash dividends
Annual dividends per share

Year ended February 28, 2017
Year ending February 28, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
60.00

Yen–

Yen
60.00

Yen
120.00

60.00

–

60.00

120.00Year ending February 28, 2018 (Forecast)(None) Revisions to dividend forecasts published most recently: None

Total

3. Forecast of consolidated financial results for the year ending February 28, 2018 (from March 1, 2017 to February 28, 2018)
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
Six months ending
129,100
4.7
23,900(0.5)
24,350(0.3)
16,070(1.0)
194.71
August 31, 2017
Full year
254,000
6.3
42,5001.5
43,4001.3
28,7301.3
348.11(None) Revisions to financial forecasts published most recently: None1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2017(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
NoChanges in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement 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 May 31, 201782,532,416 shares As of February 28, 201782,532,416 shares

Number of treasury shares at the end of the period
As of May 31, 2017393 shares As of February 28, 2017393 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 201782,532,023 shares Three months ended May 31, 2016

82,532,023 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, 2018 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, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
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
Total property, plant and equipment
Intangible assets
Trademark right
Goodwill
Other
Total intangible assets

As of May 31, 2017

117,261
8,333
54,315
1,759
5,510
(22)

115,456
10,10061,340
1,283
7,947
(26)

187,158

196,101

27,101(14,214)27,889(14,303)

12,886

13,585

10,301

10,788(7,125)(7,367)

3,175

3,420

12,157
139
453
(382)

14,163
202
447
(382)

70

65

28,42931,438

2,462
5,129
1,853

2,285
4,725
1,814

9,445

8,825

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Lease and guarantee deposits
Net defined benefit asset
OtherAllowance for doubtful accounts

53
2,647
2,119
22,697
26
1,354
(17)

49
2,647
2,097
23,736
–
1,539
(18)

Total investments and other assets

28,88230,05366,75770,316

253,916

266,418

Total non-current assets
Total assets3

(Millions of yen)
As of February 28, 2017
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision
Asset retirement obligations
Notes payable - facilities
Other

As of May 31, 2017

11,811
1,574
7,815
881
36310
1,019
7,400

18,600
2,520
5,433
1,537
297
6
1,404
8,798

Total current liabilities

30,87538,598Non-current liabilities
Net defined benefit liability
Asset retirement obligations
Other741
331
1,886

758
348
1,505

2,959

2,611

Total liabilities

Total non-current liabilities

33,835

41,209Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

19,972
23,979166,637(2)

19,972
23,979171,184(2)

210,588

215,135

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

88,877

69,386

Total accumulated other comprehensive income

8,886

9,392

Total shareholders' equity

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

4606

680

220,080

225,208

253,916

266,418

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
May 31, 2016

Three months ended
May 31, 2017

Net sales
Cost of sales

66,35429,54468,546
30,887Gross profit

36,80937,658Selling, general and administrative expenses
Packing and transportation expenses
Advertising expenses
Warehousing expenses
Directors' compensations, salaries and allowances
Provision for bonuses
Retirement benefit expenses
Legal and employee benefits expenses
Rents
Depreciation

739
1,673
706
6,297
636
89
809
6,541
1,015

781
1,931
743
6,332
680
105
887
6,891
990

Utilities expenses
Commission fee
Taxes and dues
Amortization of goodwill
Other

502
1,246
313
224
1,664

501
1,403
407
218
1,807

Total selling, general and administrative expenses

22,45823,684

14,35013,974Non-operating income
Interest income
Foreign exchange gains
Rent Income for house
Advertising medium income
Other

35
43181
1239

36
34247
12106

Total non-operating income

312

437

340
6391
12

Operating income

Non-operating expenses
Interest expenses
Rent expenses
OtherTotal non-operating expenses
Ordinary income

550

107

14,611

14,304

(Millions of yen)Three months ended
May 31, 2016
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary lossesLoss on retirement of non-current assets
Impairment loss
Total extraordinary losses

Three months ended
May 31, 2017
101020
2766
33

47

99

Profit before income taxes

14,565

14,204

Income taxes - current
Income taxes - deferred

4,937
(50)

4,701(54)

Total income taxes

4,886

4,646

Profit

9,678

9,557

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

638

58

9,640

9,498

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
May 31, 2016
ProfitOther comprehensive incomeValuation 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

Three months ended
May 31, 2017

9,678

9,557

2(2,317)(2)523(2,315)

521

7,363

10,0797,348

10,0051474