Don Quijote Holdings
Third Quarter Results for March 2015
M 7May7, 2015

0Earnings summary for the first nine months
Consolidated((Millions of yyen))

9 months to Mar. 2015
ActualShare

YoY

9 months to Mar. 2014
ActualShare

Net sales

509,920100.0%

110.4%

461,776

100.0%

Gross profit

137,53127.0%

113.0%

121,702

26.4%

SGA

103,84420.4%

111.9%

92,764

20.1%

Operating profit

33,687

6.6%

116.4%

28,938

6.3%

Recurring profit

34,8026.8%

116.7%

29,816

6.5%

Net profit

20,0833.9%

107.0%

18,764

4.1%

EPS(Yen)255.47-106.3%

240.25-• Consolidated and same store sales jumped 10% and 3.3% YoY respectively thanks to successful strategies to deal with price-sensitive
customer behaviors. Customer base expanded by attracting families purchasing daily necessity items. Tourists generated greater
contribution to sales.
• GPM went up 0.6pts YoY to 27.0% which hit the bottom with our three-phased strategies after the consumption tax hike.
GPM improved backed by more tourists’ sales despite greater sales of daily commodities with high-turnover and low-margin.
GPM was an all-time high 27.37% in Q3.
• SGA to sales ratio fell 0.3pts to 20.4%. Cost increased due to initial cost of greater-than-expected 22 new store openings. Moreover,personnel cost went up mainly because of more man-hour
man hour triggered by increase in our shares in daily necessities and tourists’tourists sales.
sales
Cost increase was more than offset by total sales growth.
• OP grew 16% YoY, exceeding the 10 billion yen-mark for the third consecutive quarter. Full year sales and OP are expected to growfor a record 26 consecutive years.
Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

1Same-store sales
125.0%

120.0%= Customer traffic= All stores= Customer spending= Existing stores

115.0%

110.0%

105.0%

100.0%

95.0%

90.0%

85.0%
2012 Sep.

Existing stores

2013Mar.

2014 Jan.

2013 Sep.

2014Mar.

2015Sep.

2015 Mar.

Feb.

Mar.

Apr.

MayJun.

JulAug.

Sep.

Oct.

Nov.

Dec.

2015 Jan.

Feb.

Mar.

Sales

98.7%

97.7%

116.7%

95.5%

100.7%

99.5%

101.4%

102.3%

105.0%

108.3%

107.1%

104.3%

106.7%

109.4%

89.5%Customer traffic

99.5%

97.6%

105.7%

97.3%

102.4%

100.9%

101.7%

100.6%

103.5%

105.2%

103.8%

100.0%

101.2%

105.6%

94.6%

Customer spending

99.2%

100.1%

110.4%

98.2%

98.4%

98.6%

99.8%

101.7%

101.5%

102.9%

103.1%

104.2%

105.4%

103.7%

94.6%

Existing store No.

192

191

193

19195

19195

19194

196

196

196

19195

196

200

203

20204

20205

• DQ SSS, traffic and basket spend for the first nine months rose 3.3%, 1.6% and 1.7%. The first, second and third quarter SSS grew 2.8%,
6.3% and 0.6% respectively. SSS guidance : up 2.4% in 2H and 3.5% for full year.
• MoreMffamilies
ili were attracted
d iinto our customer bbase, encouraged
dbby our successful
f l post-tax-hikehik strategies
i andd perfectfpreparations.
iWe expanded our tourists’ wallet share by capitalizing on our first mover advantage.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

2

Sales breakdown by product category for the first nine months
Consolidated(Millions of yen)

9 months to Mar. 2015
ActualShareYoY

9 months to Mar. 2014
ActualShareHome electrical appliances

43,751

8.6%

102.1%

42,832

9.3%

Miscellaneous household goods

113,62822.3%

109.5%

103,774

22.5%

Foods

153,660,30.1%

114.9%

133,695,

29.0%

Watches & fashion merchandise

106,560

20.9%

104.9%

101,584

22.0%

Sporting goods & leisure goods

27,3885.4%

105.2%

26,022

5.6%

Oth products
Other
d t

46 956
46,9569 2%
9.2%

126 1%
126.1%

37 247
37,2478 0%
8.0%

Total retail store business

491,94396.5%

110.5%

445,154

96.4%

Rent income

13 56813,5682 7%
2.7%

107 7%
107.7%

12 59912,599

2 7%
2.7%

Other business

4,409

0.8%

109.6%

4,023

0.9%

509,920100.0%

110.4%

461,776

100.0%

Total•••••Home appliances : Smart phone accessories and POSA cards took the lead. Cooking and grooming appliances were robust.
Household goods : Consumables were strong. Cosmetics, drugs and baby goods became more popular among tourists.
Foods : Almost all product groups were brisk such as snacks, alcoholic drinks, daily delivered, processed and frozen foods.
Watches & Fashion : Seasonal apparels were weak. Super brand watches and bags contributed.
Sports & Leisure : Sales in outdoor goods were soft and exercise goods grew.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

3

The number of stores(Number of stores)
Don Quijote
MEGA
New MEGAOthers
pTotal stores in Japan

FY2013

FY2014165352131252

FY2015-1Q FY2015-2Q FY2015-3Q
174
172
173
175
3737373628
31343930323331269272277281

Overseas314141414Grand Total

255

283286291295Domestic opening
Temporary closing
Domestic closure
N t increase
Neti160313222317612393157034• 22 new stores opened in the first nine months : 9 Don Quijote, 10 New MEGA and other formats.
• 6 stores closed. Store operation was reviewed, converting 1 DQ store to Kyoyasudo and another to New MEGA from four
DQ stores. 3 stores are closed temporarily for relocation or renovation.
• Most new stores opened in local roadside locations. The number of new stores is more than initially planned, making store
opening pace fastest in history.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

4

Key components in SG&A for the first nine months
Consolidated(Millions of yen)

9 months to Mar. 2015
ActualShare

YoY

9 months to Mar. 2014
ActualShare

Net sales

509,920100.0%

110.4%

461,776

100.0%

Salary allowance

37,1707.3%

115.8%

32,105

7.0%

R t
Rent

14 044
14,0442 8%
2.8%

106 3%
106.3%

13 213
13,2132 9%
2.9%Commission paid

11,7222.3%

105.1%

11,157

2.4%

Depreciation
pand amortization

8,415

1.6%

112.9%

7,453

1.6%

Others32,493

6.4%

112.7%

28,836

6.2%

SGA

103,84420.4%

111.9%

92,764

20.1%• SGA to sales ratio fell 0.3pts to 20.4%. Cost increased including initial cost* with greater-than-expected 22 new store openings.
*Salary allowance, Depreciation & Amortization, Fixings, etc.
zPersonnel cost increased because more man-hour was needed as tourists and daily necessities sales grew. The increase was offset
by overall sales growth.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

5Sales and profit by business for the first nine months（Millions of yen）

Sales, profit and loss by segment from Jul. 1, 2014, to Mar. 31, 2015
Consolidated
Sales to external customers

Retail store

Rent income

491,943

13,568

4,409

11,573

Internal sales or transfers
between segments-

Others

Total

Adjusted amount

Consolidated

509,920-509,920

4,567

16,140(16,140)-

Total

491,943

25,141

8,976

526,060(16,140)

509,920

Segment profit

20,605

9,393

3,947

33,945(258)

33,687（Millions of yen）

Sales, profit and loss by segment from Jul. 1, 2013, to Mar. 31, 2014
Consolidated
Sales to external customers

Retail store

Rent income

445,154

12,599

4,023

4 462
4,462

Internal sales or transfers
between segments-

Others

Total

Adjusted amount

Consolidated

461,776-

461,776

2 949
2,949

7 411
7,411

(7 411)(7,411)-

Total

445,154

17,061

6,972

469,187(7,411)

461,776

Segment profit

23,094

5,173

2,551

30,818(1,880)28,938z

Q3 profit in the retail business was 20.6 billion yen which is our mainstay.

• Q3 profit in the tenant leasing business was 9.4 billion yen.
• Q3 profit in other business was 3.9 billion.
Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

6

Balance Sheet

Consolidated
T t l currentt assets
Totalt（Millions of yen）
As of Mar. 31, Change from2015
Jun. 30, 2014
178 386
178,386
19 552
19,552

Consolidated
T t l currentt liabilities
Totalli biliti（Millions of yen）
As of Mar. 31, Change from2015
Jun. 30, 2014
138 841
138,841
24 397
24,397

Cash and deposits

49,451

6,761

Accounts payable

57,8402,722

Merchandise

96,918

7,813

Short-term liabilities*

41,00121,057

321 416
321,416

48 115
48,115

Total noncurrent liabilities

143 789
143,789

19 262
19,262

255,546

42,823Long-term bonds

63,49019,190

Buildings

93,31816,240Long-term borrowings

26,570(3,460)Land

146,600

26,920Long-term payables underfluidity

35,792

1,447

17,275

1,919

Total liabilities

282,630

43,659

7,521

1,189

Net assets

217,172

24,008

Total investments and other assets

48,595

3,373

Total shareholders' equity

206,413

18,776

Lease and guarantee deposits

30,439(524)

Minority interests

8,097

2,278

499,80267,667499,80267,667

Total noncurrent assets
Total property, plant and equipment

Total intangible assets
Goodwill

Total assets

Liabilities and net assets* Short-term liabilities = Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds• Cash & deposits : 30 billion yen was financed by straight bonds for the first time in three years on top of bank borrowings for further
new store openings.
• Merchandise increased 7.8 billion yen because of accelerated new store openings and efforts to reduce opportunity loss at existing
stores with superb performance.
• Payables associated with the liquidation of receivables : 42.8 billion yen was financed by asset-backed loans.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

7

Cash flows and Capital expenditure（Millions of yen）

Consolidated Cash Flows

Cash and equivalents at beginning of period
Cash flows from operating activitiies
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in cash and equivalents
Cash and equivalents at end of period

9 months to Mar.
2015

9 months to Mar.
2014

44,10544
105
24,434(41,317)22 501
22,501
6,539
50,64436,13236
132
28,926(26,879)
13 35813,35815,96752,099Cash flows*
Net increase (decrease)

7,973
7973
(4,492)(14,438)
9 143
9,143
(9,428)(1,455)（Millions of yen）

Consolidated Capital Expenditures

Capital expenditures

Change9 months to Mar.
2015

9 months to Mar.
2014

41,00641006
26,749(14,257)

26,59026590
24,350(2,240)Change14,41614416
2,399
12,017* Cash flows = Net income + Depreciation
pand amortization + Extraordinary
y loss - Dividend• Cash flow from operating activities was 24.4 billion yen positive. Positive factors : 34 billion yen of income before income taxes andminority interests, 9.4 billion yen of depreciation and amortization, 1.8 billion yen increase in trade payables.
Negative factors : 6.8 billion yen more in inventories and 14.9 billion yen for tax payment.
g activities was 22.5 billion yyen p
positive. 31.5 billion yyen of net increase of bonds and 2 billion yyen of net• Cash flow from financingrevenue growth by the liquidation of rent claims contributed. 9.1 billion yen of net decrease in borrowings and 2.8 billion yen of dividend
payment were negative factors.
• 41 billion yen is for capex to acquire new store properties for this year and years afterwards.
Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

8

Earnings summary for Q3
Consolidated((Millions of yyen))

3 months to Mar. 2015
ActualShare

YoY

3 months to Mar. 2014
ActualShareNet sales

167,696

100.0%

105.8%

158,454100.0%

Gross profit

45,89727.3%113.0%

40,627

25.6%

SGA

35,621

21.2%

110.6%

32,193

20.3%

Operating profit

10,2766.1%

121.8%

8,434

5.3%

Recurring profit

10,7586.4%

123.9%

8,681

5.5%

Net profit

6,389

3.8%

111.3%

5,740

3.6%

EPS(Yen)

81.06-

110.6%

73.31-

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

9

Sales breakdown by product category for Q3
Consolidated(Millions of yen)

3 months to Mar. 2015
ActualShare

3 months to Mar. 2014

YoY

ActualShare

Home electrical appliances

14,405

8.6%

97.7%

14,737

9.3%

Miscellaneous household goods

37,09922.1%

106.3%

34,912

22.0%

Foods

,52,04531.1%

108.5%

47,974,30.3%

Watches & fashion merchandise

33,39619.9%

103.4%

32,303

20.4%

Sporting goods & leisure goods

7,553

4.5%

102.7%

7,356

4.6%

Oth products
Other
d t

17 08417,084

10 2%
10.2%

109 9%
109.9%

15 54915,5499 8%
9.8%

Total retail store business

161,58296.4%

105.7%

152,831

96.4%

Rent income

4 596
4,596

2 7%
2.7%

108 1%
108.1%

4 250
4,250

2 7%
2.7%

Other business

1,518

0.9%

110.6%

1,373

0.9%

167,696

100.0%

105.8%

158,454100.0%

Total

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

10

Key components in SG&A for Q3
Consolidated(Millions of yen)

3 months to Mar. 2015
ActualShare

YoY

3 months to Mar. 2014
ActualShare

Net sales

167,696

100.0%

105.8%

158,454100.0%

Salary allowance

12,8397.7%

113.9%

11,271

7.1%

R tRent

4 874
4,874

2 9%
2.9%

106 6%
106.6%

4 574
4,574

2 9%
2.9%

Commission paid

3,931

2.3%

108.8%

3,612

2.3%

Depreciation
pand amortization

3,045

1.8%

104.9%

2,902

1.8%

Others10,932

6.5%

111.2%

9,834

6.2%

SGA

35,621

21.2%

110.6%

32,193

20.3%

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

11Full year forecast for fiscal June 2015
Consolidated

FY2015 Revised forecast(Millions of yen)

Plan

Share

YoY

FY2015 Previous forecast
Plan

Share

FY2014 results
ActualShare

Net sales

668,000

100.0%

109.1%

658,000

100.0%

612,424100.0%

Gross profit

179,000

26.8%

111.2%

175,500

26.6%

161,018

26.3%

SGA

141,000

21.1%

111.3%

139,000

21.1%

126,726

20.7%

Operating profit

38,0005.7%

110.8%

36,5005.5%

34,292

5.6%

Recurring profit

39,0005.8%

109.9%

37,5005.7%

35,487

5.8%

Net profit

22,3003.3%

103.9%

21,8003.3%

21,471

3.5%

EPS(Yen)284 47284.47-

103 6%
103.6%

278 09278.09-274 68274.68-

Capital expenditure

45,000-126.5%

45,000-35,563-

Depreciation andamortization

11 50011,5001 7%
1.7%

110 6%
110.6%

11 200
11,2001 7%
1.7%

10 402
10,402

1 7%
1.7%• Full year consolidated forecast was up-revised : Sales are up 10 billion yen. Both OP and RP are up 1.5 billion against initial forecast.
• DQ SSS forecast : Sales are up 2.4% in 2H and up 3.5% for full year.
• 41 billion yen is for capex to acquire properties for the 33 new stores for this year and another openings in years ahead.

Copyright (c) 2015 Don Quijote Holdings Co.,Ltd. All rights reserved.

12