Summary Report of Consolidated Financial Results
For the Nine Months Ended March 31, 2015

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Don Quijote Holdings Co., Ltd.
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Koji Oohara, President and COO
Contact:
Mitsuo Takahashi, Senior Managing Director (Phone: +81-3-5725-7588)
URL:
http://www.donki-hd.co.jp(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the Nine months ended 31 March, 2014
(1) Consolidated Results(Millions of yen, except per-share data)
Operating
Ordinary
ChangeNet Sales
Change (%)
Change (%)
IncomeIncome(%)
Nine Months Ended
509,920
10.4
33,68716.4
34,802
16.7
March 31, 2015
Nine Months Ended
461,776
7.9
28,938
10.7
29,816
11.6
March 31, 2014
(Note) Comprehensive income: 25,865 million yen [18.7%] (FY 2015.6 3Q), 21,793 million yen [12.5%] (FY 2014.6 3Q)

Net Income
Nine Months Ended
March 31, 2015
Nine Months Ended
March 31, 2014

Change (%)

Net Income
Per Share (Yen)Net Income Per
Share-fully
diluted (Yen)

20,0837.0

255.47254.57

18,76414.9

240.25238.79(2) Financial Position(Millions of yen, except per-share data)

Ratio of
Shareholders’ Equity
to Total Assets (%)
As of March 31, 2015
499,802
217,172
41.8
As of June 30, 2014
432,135
193,164
43.4(Reference) Equity: 209,076 million yen (as of March 31, 2015), 187,345 million yen (as of June 30, 2014)
Total Assets

Net assets

2. Dividends
Three Months Ended
September 30
Year Ended June 30,
2014Year Ending June 30,
2015
Year Ending June 30,
2015 (Forecast)

Six Months Ended
December 31

YenNine Months
Ended March 31

－

10.00

－

－

10.00

－

Year Ended June
30

Total

26.00

36.00

26.00

36.00

(Note) Revision to the dividend forecast in the third quarter of fiscal 2015: None
3. Consolidated Business Forecast： For the year ending June 30, 2015 (From July 1, 2014 to June 30, 2015)(Millions of yen, except per-share data)

Year Ending
June 30, 2015
(Note)Net

ChangeOperating

ChangeOrdinary

ChangeNet

ChangeSales(%)

Income(%)

Income(%)

Income(%)

10.8

39,000668,000

9.1

38,000

Revision to the business forecast in the third quarter of fiscal 2015: Yes

1

9.9

22,3003.9

Net Income
per Share(Yen)

284.47

4. Others(1) Significant changes in the scope of consolidation: None
(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: None
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: None
② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury stock included)
March 31, 2015:
78,893,480 shares
June 30, 2014:
78,393,980 shares② Number of treasury stock
March 31, 2015:
1,244 shares
June 30, 2014:
1,244 shares③ Average number of outstanding shares during the period
Nine months ended March 31, 2015:
78,610,018 shares
Nine months ended March 31, 2014:
78,100,953 shares※ Implementation Status of Financial Audit
This financial summary is not subject to quarterly review under the Financial Instrument and Exchange Act.
Quarterly review procedures for the consolidated financial statements are being conducted at the time of theannouncement of this financial summary.
※ Explanation regarding the appropriate use of forecasts of business results
The future business result forecasts included in the financial statements are based on the information available to thecompany at the time of the announcement and on certain assumptions considered reasonable. Thus, we do not makeany representation as to their achievability and undertake any obligation of their updates as a result of new
information. Actual results may differ widely from the forecasts for a variety of reasons, including changes in
economic environments related to our business, market trends and exchange rates.

2

1. Financial Results for the Nine Months Ended March 31, 2015
(1) Consolidated Business Results
During the nine-month period ended March 31, 2015 covered by this report (July 1, 2014 to March 31, 2015), the Japanese
government implemented the three ”arrows” program continuously, which is an integrated promotion of bold monetary
policy, flexible fiscal policy and a growth strategy to stimulate private-sector investment. This program, combined with thedepreciation of the yen and the drop of oil prices improved the corporate earnings and the employment environment.
Although the Japanese economy has shown a moderate recovery, uncertainty remains strong for personal consumption
behavior because of weaker consumer motivation after the consumption tax hike implemented in April 2014, higher
consumer price driven by yen depreciation, current decline in real disposable income and other divers factors. Additionally,customers are becoming increasingly sensitive to prices for daily necessities such as food items and daily consumables.
The retail industry now goes through an era of increasing disparity between retailers, where mind of “flexible andadaptable to changes” is required to respond promptly to customer frugality, an economically wise consumption behavior in
the current harsh environment and having the ability to set prices at levels that customers find attractive.
Though in such severe circumstances, with our strong point represented by the mind of “flexible and adaptable to changes”
based on front-line business power and independent store operation, an essential element that would enable us to fully
differentiate our company to the rivals, the Don Quijote Group has adopted an aggressive management approach
performed by active and enhanced sales strategies.
In other words, by transferring major decision-making authority to the business front-line, a unique culture of the Don
Quijote Group, we have revised the product mix and taken fine-tuned price strategies at each store in order to respondproperly to customer’s behavior and requirements regionally different. These efforts allowed us to strengthen and enrich
the lineup of daily necessities, to secure price advantages in commercial area and thereby to improve support from
customers. Our management considers that our dynamism to launch into price strategy let us make the most of the Group’s
highly efficient and powerful business resources to compete in retail market after the consumption tax hike when rivals
remained hesitant to adopt price strategy. This dynamism is the exact reason of the Group’s success in gaining market
share from rivals and winning support from customers.
Besides these company’s robust fundamentals for domestic demand, the Don Quijote Group has made steadfast efforts
since 2008 to capture foreign tourists’ attention, ahead of other retailers. The Don Quijote Group newly introduced
successive operating initiatives following the previously implemented “Welcome Desk” (a call center for foreign tourists),“Tax-exemption counters” and “Welcome Crew” (staffs at stores to interact with foreign customers), from the viewpoint ofproviding convenience of the customers according to our resolute corporate principle of “highest priority given to thecustomers’ satisfaction”, which outclasses those of competitors. In February 2015, we launched “Welcome Reservation Site
(Chinese version)” for the foreign tourists to offer the opportunity of pre-order items and guaranteed purchase before
visiting Japan, which contributed to obtain huge demand during the Chinese New Year. Furthermore, we introduced a new
cash settlement service for the first time in Japan, a system where customers can pay in seven foreign currencies (theChinese yuan, Taiwan dollar, Korean won, Thai baht, Hong Kong dollar, US dollar and Euro) at 20 stores which foreign
tourists frequently visit. The service takes maximum advantage of accumulated business expertise of a consolidated
subsidiary operating financial service, Accretive Co., Ltd.
The Don Quijote Group’s original electronic money card “majica”, after a year of introduction in March 2014, has beenrecording a steady increase in number of subscribing members and transaction sales volume beyond our initialexpectations and also contributing to achieve enclosure of customers, which resulted in improving average sales per
customer. The majica membership exceeded 2.4 million as of the end of March 2015.
With respect to overseas operations, in January 2015, MARUKAI CORPORATION, a consolidated subsidiary, fully
remodeled the Marukai Costa Mesa and opened the first new type food supermarket named “Tokyo Central Costa Mesa” in
California, US. The store offers fascinating shopping opportunity through a combination of wide-variety of imported goods
3from Japan, including delicatessen and assorted sundries and national US brands. In March 2015, MARUKAICORPORATION also renovated and opened the second store, “Tokyo Central West Covina”, in California.
During nine-month period ended March, 2015, the Don Quijote Group opened 22 new stores in Japan – one in Hokkaido(Don Quijote Kushiro), one in the Tohoku region (Yamagata – MEGA Don Quijote Lepark Mikawa), ten in the Kanto region(Tokyo – Don Quijote Kōrakuen, Don Quijote Tama Mizuho, KYŌYASUDŌ Mejiro, and KYŌYASUDŌ Umejima-Ekimae;
Kanagawa－Don Quijote SING Hashimoto-Ekimae, Don Quijote Isezakicho, MEGA Don Quijote Shin-Yokohama, andTown-Doit Shin-Yokohama; Chiba－Don Quijote Asahi; Ibaraki －MEGA Don Quijote Tsukuba), four in the Chubu region(Shizuoka－Don Quijote Shizuoka Matsutomi and MEGA Don Quijote Hamamatsu Mikatahara; Aichi－Don Quijote
Nagoya Sakae and MEGA Don Quijote Kasugai), four in the Kinki region (Osaka－MEGA Don Quijote Ibaragi, MEGA Don
Quijote Fukaebashi, MEGA Don Quijote Shinsekai, and MEGA Don Quijote Matsubara), and two in the Kyushu region(Miyazaki－MAGA Don Quijote Miyakonojo; Kagoshima－Don Quijote Kagoshimatenmonkan).
On the other hand, The Don Quijote Group closed one store for remodeling (Don Quijote Minoh). It also closed two stores
because of moves (Don Quijote Mizuho and Picasso Isezakicho), one store for change of business category (Don Quijote
Koganei Koen) and six stores for improve business efficiency (Don Quijote Futtsu, Don Quijote Shinonome, Don Quijote
Home Center Koigakubo, Mega Don Quijote Arakawaoki, Nagasakiya Chishirodai and Town-Doit Shin-Yokohama). As aresult, the number of Group’s stores attained 295 at the end of March, 2015 (while 283 stores at the end of June 2014).
The following is an overview of the consolidated results for the nine-month period ended March, 2015.
(millions of yen)
Nine months ended

Nine months ended

Year-on-Year

March 31, 2015

March 31, 2014change(%)

Net sales

509,920

461,776

48,144

10.4

Operating income

33,68728,938

4,749

16.4

Ordinary income

34,80229,816

4,986

16.7

Net income

20,08318,764

1,319

7.0

The profit has reached the highest-ever level for the nine-month period.
Segment income results are reviewed as follows.
1) The retail segment recorded 491,943 million yen in sales (up 10.5% year on year) and 20,605 million yen in operating
income (down 10.8%). Sales of the existing stores of the Group’s main line category, Don Quijote, increased by 3.3% year
on year in the nine-month period due to factors such as the successful capture of demand from foreign tourists. MEGADon Quijote and New MEGA Don Quijote stores, a category targeting families also continue to grow at a solid pace owing
to a success in sales strategies for daily necessities such as food and assorted sundries and in taking market share awayfrom rival retailers.
2) The tenant leasing segment recorded 13,568 million yen in sales (up 7.7% year on year) and 9,393 million yen in
operating income (up 81.6%). Japan Asset Marketing Co., Ltd. and Japan Commercial Establishment Co., Ltd. are themain entities in this segment. Income expanded at a steady pace accompanied by the increase in number of stores inretail segment.
3) The other business segment recorded 4,409 million yen in sales (up 9.6% year on year) and 3,947 million yen in operating
income (up 54.7%), due to an expansion in business of Financial service provider Accretive Co., Ltd. and other entities.

The medium-to-long term strategy consists in creating stores that would gain support from customers and increase thenumber of customers visiting stores by reinforcing the Group's differentiating attributes (Convenience, Discount, andAmusement) as an enterprise of business model creator with the resolute corporate principle of "highest priority given
to the customers’ satisfaction" and by implementing various operation initiatives.
4The Group is striving to achieve the target of a 15% return on equity (ROE) and to realize sustainable growth over the
medium-to-long term with larger sales and gross profit gains driven by further support from customers.
(2) Consolidated Financial Position（Millions of yen）
As of June 30, 2014

As of March 31, 2015

Total assets

432,135

499,80267,667

Total liabilities

238,971282,630

43,659Net assets

193,164

217,172

24,008

1.

ChangeAssets, liabilities and net assets

At the end of the third quarter of the consolidated accounting period (March 31, 2015), total assets increased by 67,667
million yen compared to the end of the previous consolidated fiscal year (June 30, 2014) to 499,802 million yen. The mainchanges were increase of 42,823 million yen in tangible fixed assets and 7,813 million yen in merchandise.
Liabilities increased by 43,659 million yen compared to the end of the previous consolidated fiscal year to 282,630 million
yen. The main changes were increase of 2,722 million yen in accounts payable, 4,997 million yen in loans payable and31,790 million yen in bonds payable. Net assets increased by 24,008 million yen compared to the end of the previous
consolidated fiscal year to 217,172 million yen.
2.

Cash flow

Net cash provided by operating activities totaled 24,434 million yen for the reasons below. Increase factors are gains fromnet profit, depreciation costs and an increase in accounts payable. Decrease factors are an increase in inventories andincome taxes paid.
Net cash used in investing activities totaled 41,317 million yen due to payments for the acquisition of tangible fixed assets
and other items.
Net cash provided by financing activities totaled 22,501 million yen for the reasons below. Increase factors are proceedsfrom issuance of bonds and proceeds from fluidity of receivables. Decrease factors are repayment of loans and cash
dividends paid.
Cash and cash equivalents at the end of the third quarter of the consolidated accounting period amounted to 50,644 millionyen.
(3) Qualitative Information Concerning Consolidated Business Results Projection
The following adjustments were made concerning the business results projection for the fiscal year ending June 30, 2015 inconsideration of the business results for the nine months period ended March 31, 2015, released on February 5, 2015.
Fiscal year beginning on July 1, 2014 and ending June 30, 2015
(Millions of yen, except per-share data)
Net sales

Operating

Ordinary

incomeincomeNet income

Net Income Per
Share (Yen)Previous forecast (A)658,000

36,50037,50021,800278.09New forecast (B)668,000

38,00039,00022,300284.47

Difference (B-A)

10,000

1,500

1,500

500

－

1.5

4.1

4.0

2.3

－

612,424

34,29235,487

21,471

274.68Change (%)
Previous results

The Don Quijote Group faces various risks and uncertainties as long as we conduct our business.
Then the changes in the economic environment, market trends and other external conditions for Don Quijote and Don
Quijote Group’s business would be majors factors that affect the actual income results.
5Consolidated Quarterly Balance Sheets(Millions of yen)
As of March 31,

As of June 30,

2015

2014

AmountAmountAssetsCurrent assets
Cash and deposits¥49,451¥42,690

Notes and Accounts receivable-trade

6,793

5,730

Purchased receivables

5,853

6,009

Merchandise

96,918

89,105

Other

19,406

15,341(35)(41)

178,386

158,834

93,31877,078

Allowance for doubtful accounts
Total current assets

Non-current assets
Property, plant and equipment
Buildings and structures, net
Tools, furniture and fixtures, net

13,551

12,451

Land

146,600

119,680

2,077

3,514

255,546

212,723

Goodwill

7,521

6,332

Other

9,754

9,024

Total intangible assets

17,275

15,356

Investment securities

6,326

4,414

Lease and guarantee deposits

30,43930,963

Other

13,607

11,596

Allowance for doubtful accounts(1,777)(1,751)

Total investments and other assets

48,59545,222Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets

Total assets

6

321,416

273,301¥499,802¥432,135(Millions of yen)
As of March 31,

As of June 30,

2015

2014

AmountAmountLiabilities
Current liabilities
Accounts payable-trade¥57,840¥55,118

Short-term loans payable

3,458

2,197

Current portion of long-term loans payable

18,803

11,607

Current portion of bonds

18,7406,140

Payables under fluidity lease receivables

7,014

5,912

Income taxes payable

6,803

7,883

Provision for point card certificates

848

413

Other

25,33525,174

Total current liabilities

138,841

114,444

Bonds payable

63,49044,300Long-term loans payable

26,57030,030Long-term payables under fluidity lease receivables

35,792

34,345

－

360

3,681

3,285

Non-current liabilities

Provision for directors' retirement benefits
Asset retirement obligations
Negative goodwill

548

622

Other

13,708

11,585

Total non-current liabilities

143,789

124,527

282,630

238,971

Capital stock

22,126

21,366

Capital surplus

24,92824,169Retained earnings

159,362

142,105

Total liabilities
Net assets
Shareholders' equity

Treasury shares
Total shareholders' equity

(3)

(3)

206,413

187,637

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

518

472

Foreign currency translation adjustment

2,144

(764)

Total accumulated other comprehensive income

2,662

(292)

8,097

5,819

Minority interests
Total net assets
Total liabilities and net assets

7

217,172

193,164¥499,802¥432,135

Consolidated Quarterly Statements of Income
Nine months ended
March 31, 2015

(Millions of yen)
Nine months ended
March 31, 2014

AmountAmountNet sales¥509,920¥461,776

Cost of sales

372,389

340,074

137,531

121,702103,844

92,76433,68728,938Interest and dividends income

453

403

Amortization of negative goodwill

74

311

Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Penalty income

561

14

Other

1,709

1,331

Total non-operating income

2,797

2,059

Interest expenses

665

847

Fluidity lease fee

508

118

Other

509

216

1,682

1,181

34,80229,8162

214

Gain on insurance adjustment

138－

Gain on bargain purchase

168

－

9

164

317

378

Loss on sales of non-current assets

367－

Loss on retirement of non-current assets

104

325

Loss on closing of stores

478

205

Other

128

176

1,077

706

34,042

29,488

11,95911,089Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets

Other
Total extraordinary income
Extraordinary loss

Total extraordinary losses
Income before income taxes and minority interests
Income taxes – Current
Income taxes – Deferred(823)(2,321)

11,136

8,768

Income before minority interests

22,906

20,720Minority interests in income

2,823

1,956

¥20,083¥18,764

Total income taxes

Net income8Consolidated Quarterly Statements of Comprehensive Income

Income before minority interests

Nine months ended
March 31, 2015

(Millions of yen)
Nine months ended
March 31, 2014

AmountAmount¥22,906¥20,720

Other comprehensive income
49

(125)

Foreign currency translation adjustment

2,910

1,198

Total other comprehensive income

2,959

1,073

¥25,865¥21,793¥23,037¥19,836

2,828

1,957

Valuation difference on available-for-sale securities

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

9

Consolidated Quarterly Statements of Cash Flows
Nine months ended
March 31, 2015
Amount(Millions of yen)
Nine months ended
March 31, 2014
AmountNet cash provided by (used in) operating activities:
Income before income taxes and minority interests
Depreciation
Amortization of negative goodwill
Gain on bargain purchase
Decrease in provisionInterest and dividend income
Interest expenses
Increase in notes and accounts receivable – trade
Decrease (increase) in inventories
Increase in notes and accounts payable – trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Surcharge paid
Net cash provided by operating activities¥34,042
9,388
(74)
(168)
(13)
(453)
665
(479)
(6,837)1,808
1,344
39,223350(667)(14,919)556(109)
24,434¥29,488
8,264
(311)
－
(195)
(403)
847
(1,567)815
8,631(4,169)41,400306(985)(11,795)－－
28,926541(36,870)241(331)(2,029)2,173(2,465)－

7(23,446)
1,945(1,890)
(831)
735
(458)
423

(1,581)(2,507)

Net cash provided by (used in) investing activities:
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 lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payment for store opening in progress
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Proceeds from purchase of shares of subsidiaries resulting in change
in scope of consolidation
Payments of loans receivable
Other, net
Net cash used in investing activities

713

－

(217)
(1,492)(41,317)(1,133)276(26,879)

Net cash provided by (used in) financing activities:
Net increase in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Redemption of convertible bonds
Proceeds from fluidity of lease receivables
Repayments of payables under fluidity lease receivables
Proceeds from issuance of common shares
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by financing activities

1,126
13,238(23,513)37,836(6,310)－7,461(5,444)
1,519(2,825)(552)(35)¥22,501

4,631
20,500(21,009)
1,960(19,890)(350)
30,869(1,525)
1,370(2,573)(552)(73)¥13,358

10

Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Nine months ended
March 31, 2015
Amount¥921
6,539
44,105¥50,644(Millions of yen)
Nine months ended
March 31, 2014
Amount¥562
15,96736,132¥52,099

Notes to consolidated financial statements:(Notes to assumption of going concern)
Not applicable(Notes to significant change in balance of stockholders’ equity)
Not applicable

Segment Information
For the nine months ended March 31, 2015
1. Information concerning net sales and income or loss by reporting segment is as follow:(Millions of yen)
Reporting segment
RetailRentbusinessbusiness¥491,943

OthersSub Total(Note 1)

¥13,568¥505,511¥4,409－

11,573

11,573

Total

491,943

25,141

Segment income¥20,605¥9,393

Total

Adjustment Consolidated(Note 2)

(Note 3)¥509,920¥－¥509,920

4,567

16,140(16,140)－

517,084

8,976

526,060(16,140)

509,920¥29,998¥3,947¥33,945¥(258)¥33,687

Sales, Segment income
Net sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes real estate business, marketing business and financial service business thatare not included in other reporting segments.
2. The ¥ (258) million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
4. In the fourth quarter of the fiscal year ended June 30, 2014, a change in the business positioning of some consolidated
subsidiaries within the Don Quijote Group resulted in reclassification of their reporting segment from the Others
segment to the Rent Business segment. Based on these changes, segment amounts for the fiscal year ended June 30,
2014 have been adjusted to reflect updated segment coverage.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in goodwill)
Information is omitted since it is immaterial.
(Significant gain on negative goodwill)
Information is omitted since it is immaterial.

11

For the nine months ended March 31, 2014
1. Information concerning net sales and income or loss by reporting segment is as follow:(Millions of yen)
Reporting segment
RetailRent

Businessbusiness¥445,154－

Total
Segment income

OthersSub Total(Note 1)

¥12,599¥457,753¥4,023

4,462

4,462

445,154

17,061¥23,094¥5,173

Total

Adjustment Consolidated(Note 2)

(Note 3)¥461,776¥－¥461,776

2,949

7,411

(7,411)－

462,215

6,972

469,187(7,411)

461,776¥28,267¥2,551¥30,818¥(1,880)¥28,938

Sales, Segment income
Net sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes the services of real estate business, marketing business and financial service
business that are not included in other reporting segments.
2. The ¥ (1,880) million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in goodwill)In the retail segment, the increase of goodwill resulting from the acquisition of MARUKAI CORPORATION was ¥1,533
million in the nine months ended March 31, 2014.
The amount of goodwill is provisionally recognized based on reasonable information available at that point of time.
(Significant gain on negative goodwill)
Not applicable12