Summary of Consolidated Financial Results
for the Six Months Ended August 31, 2015（Q2 FY2016）(Based on Japanese GAAP)
October 7, 2015
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 8, 2015
Scheduled date to commence dividend payments:
November 16, 2015
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, 2015 (from March 1, 2015 to August 31, 2015)(1) Consolidated financial results (cumulative)
Percentages indicate year-on-year changes
Net sales
Millions of yen
120,433
108,017

Operating income% Millions of yen
11.5
23,873
15.1
23,466Six months ended August 31, 2015
Six months ended August 31, 2014
(Note) Comprehensive income:Six months ended August 2015 14,899 million yen (9.1%)

Net income% Millions of yen
2.1
14,66424.5
14,138%3.7
33.1

Six months ended August 2014 13,661 million yen (4.2%)

Net income per share

Diluted net income per share

Yen
191.50187.78Six months ended August 31, 2015
Six months ended August 31, 2014

Ordinary income% Millions of yen
1.7
24,29523.5
23,806

Yen
177.72
171.41(2) Consolidated financial position
Total assets
As of August 31, 2015
As of February 28, 2015
(Reference) Shareholders’ Equity:
As of August 31, 2015

Net assetsMillions of yen
236,703
233,661
190,716 million yen

Equity ratio

Net assets per share

Millions of yen
191,236
155,535

%
80.6
66.4

As of February 28, 2015

155,082 million yen

Yen
2,358.87
2,059.68

2. Cash dividends
Annual dividends per share

Year ended February 28, 2015
Year ending February 29, 2016

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
40.00
60.00

Yen–

Yen
60.00

Yen
100.00–60.00

120.00Year ending February 29, 2016 (Forecast)(None) Revisions to dividend forecasts published most recently: Yes

Total

3. Forecast of consolidated financial results for the year ending February 29, 2016 (from March 1, 2015 to February 29, 2016)
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
236,800
10.9
40,7502.8
41,4502.6
25,3804.1
322.48(None) Revisions to financial forecasts published most recently: Yes14. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2015(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
No
Changes 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:
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, 2015

80,851,310 shares As of February 28, 2015

75,294,429 shares

Number of treasury shares at the end of the period
As of August 31, 2015

393 shares As of February 28, 2015

208 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2015

76,575,475 shares Six months ended August 31, 2014

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 29, 2016 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 of February 28, 2015

As of August 31, 2015

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade96,493
7,873

98,951
8,014

Inventories
Deferred tax assets

49,3672,049

56,493
2,048

OtherAllowance for doubtful accounts

4,555(41)

7,052
(44)

160,298

172,516

25,395(12,512)

24,647(12,139)

12,883

12,508

9,006(5,834)

9,495(6,382)

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

3,171

3,113

19,629327

10,557520

438(334)440(357)

103

82

36,11526,783

Trademark right
Goodwill

2,948
7,511

2,798
6,951

Other

2,083

1,994

Total intangible assets

12,543

11,744

60
102

604
102

Long-term loans receivable
Lease and guarantee deposits

2,458
20,892

2,307
21,431Other
Allowance for doubtful accounts

1,208(18)1,231(18)

Total investments and other assets

24,70425,658Land
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Shares of subsidiaries and associates

Total non-current assets
Total assets

373,363

64,186

233,661

236,703(Millions of yen)
As of February 28, 2015

As of August 31, 2015

Liabilities
Current liabilities
Notes and accounts payable - trade14,176

11,390

Short-term loans payable
Current portion of long-term loans payable

6,355
1,000

3,576
1,000

Income taxes payable
Provision for bonuses

9,815
702

8,853
803

Provision
Asset retirement obligations

291
14

252
20

Notes payable - facilities
Other

722
7,992

1,294
6,989

Total current liabilities

41,07034,18133,0007,680

500–Provision
Net defined benefit liability

113
870

120981

Asset retirement obligations
Other

291
2,280

287
2,215

Total non-current liabilities

37,056

11,28578,12645,466Shareholders' equity
Capital stock

3,482

16,142

Capital surplus
Retained earnings

7,488
131,413

20,148
141,559

Non-current liabilities
Convertible bond-type bonds with subscription rights toshares
Long-term loans payable

Total liabilities
Net assets

Treasury shares

(0)

(2)

142,384

177,849

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

14
12,683

13
12,854

Total accumulated other comprehensive income

12,697

12,867

Total shareholders' equity
Accumulated other comprehensive income

Minority interests
Total net assetsTotal liabilities and net assets

4453

519

155,535

191,236

233,661

236,703

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, 2014

August 31, 2015

Net sales
Cost of sales

108,01747,407

120,433
54,341Gross profit

60,60966,091

Selling, general and administrative expenses
Packing and transportation expenses

1,138

1,295

Advertising expenses
Warehousing expenses

3,244
1,137

3,171
1,273

Directors' compensations, salaries and allowances
Bonuses

9,932
315

11,650
390

998
141

803
181

Legal and employee benefits expenses
Rents

1,379
9,891

1,589
11,515

Depreciation
Utilities expenses

1,910
1,099

2,109
1,113

Commission fee
Taxes and dues

2,007
417

2,358
597

Amortization of goodwill
Other

548
2,981

663
3,504

Total selling, general and administrative expenses

37,14342,21823,46623,873

Interest income
Foreign exchange gains

84
47

78–Rent Income
Advertising medium income

364
30

386
39

Other

119

109

Total non-operating income

646613

Interest expenses
Foreign exchange losses

22–

26
36Rent expenses
Other175
108

109
18

Total non-operating expenses

307

191

23,80624,295

Provision for bonuses
Retirement benefit expenses

Operating income
Non-operating income

Non-operating expenses

Ordinary income5(Millions of yen)

Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets

Six months ended

Six months ended

August 31, 2014

August 31, 2015
41,361

4

1,361

–

690

Loss on retirement of non-current assets
Impairment loss

83
106

73
1,563

Total extraordinary losses

190

2,327

Income before income taxes and minority interests

23,62023,329

Income taxes - current

9,559

8,732

Income taxes - deferred

(104)

(116)

Total income taxes

9,454

8,616

Income before minority interests

14,165

14,71326

49

14,138

14,664

Minority interests in income
Net income

6Consolidated statements of comprehensive income (cumulative)(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

Six months ended

Six months ended

August 31, 2014

August 31, 2015
14,165

14,713

(12)
(490)

(1)
187(503)

186

13,661

14,89913,64813

14,83366

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

7

Consolidated statements of cash flows(Millions of yen)Six months ended

Six months ended

August 31, 2014

August 31, 2015

Cash flows from operating activities
Income before income taxes and minority interests

23,62023,329

Depreciation
Increase (decrease) in provision for bonuses

1,910
349

2,109
100

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

1(85)

1(79)

Interest expenses
Foreign exchange losses (gains)

22(35)

26
31

Loss (gain) on sales and retirement of non-current assets
Impairment loss

78
106(598)
1,563

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(2,323)(2,065)(58)(7,039)

Increase (decrease) in notes and accounts payable - trade
Other, net

2,6831,742(2,799)(2,050)Subtotal

26,006

14,53768(22)

75(26)

Income taxes paid

(6,849)(9,749)Net cash provided by (used in) operating activities

19,202

4,836

–
–

(553)
548

(3,833)
5(2,710)
9,737

(133)
(45)

(206)
(69)

Purchase of investment securities
Purchase of shares of subsidiaries

–
(8)

(548)
–

Payments of loans receivableCollection of loans receivable

(55)
55

(110)
141

(1,169)
271

(885)
203

(61)
73(62)
46

Net cash provided by (used in) investing activities(4,901)

5,530

Cash flows from financing activities
Net increase (decrease) in short-term loans payable(835)(2,793)(501)(2,255)(500)(4,514)

Interest and dividend income received
Interest expenses paid

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 for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other payments
Other proceedsRepayments of long-term loans payable
Cash dividends paid
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(10)

(12)

(3,603)(7,819)31(62)

Net increase (decrease) in cash and cash equivalents

10,7282,484

Cash and cash equivalents at beginning of period

78,75595,807

Cash and cash equivalents at end of period

89,48398,2918