Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2023
(Based on Japanese GAAP)
July 14, 2023
Company name:

IDOM Inc.

Stock exchange listing: Tokyo
Stock code:
7599
Representative:
Inquiries:

URL

https://221616.com

President
Director CFO

Yusuke Hatori
Ryo Nishihata

Scheduled date to file Quarterly Securities Report:Scheduled date to commence dividend payments:

July 18, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
NoTEL

03-5208-5503(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2023 (from March 1, 2023 to May 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended May 31, 2023
105,258 (22.4)
2,771 (47.3)
2,696 (46.6)
1,868 (65.2)
Three months ended May 31, 2022
135,601
15.9
5,256
3.4
5,053
2.9
5,377
95.4
Earnings per share

Diluted earnings per share

Yen
18.61
53.55

Three months ended May 31, 2023
Three months ended May 31, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
158,166
173,293

As of May 31, 2023
As of February 28, 2023

Equity ratio

Millions of yen
61,98062,702

Net assets per share
%
38.8
35.8

Yen
610.48618.34

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
16.20

Yen–

Yen
26.30

Yen
42.50

14.00

–

21.80

35.80

Year ended February 28, 2023
Year ending February 29, 2024
Year ending February 29, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)
Net sales
Millions of yen
Six months ending
August 31, 2023
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

190,000(15.7)

7,500(13.0)

7,250(12.5)

4,700(37.5)

46.81

400,000(4.0)

19,0001.7

18,5001.9

12,000(15.5)

119.51

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
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, 2023106,888,000 shares As of February 28, 2023

106,888,000 shares

Number of treasury shares at the end of the period
As of May 31, 2023

6,480,651 shares As of February 28, 2023

6,480,651 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2023

100,407,349 shares Three months ended May 31, 2022

2100,407,352 shares

1.

Qualitative Information on Quarterly Financial Results(1) Analysis of operating results
In the first quarter of the fiscal year under review (March 1 to May 31, 2023), retail unit sales at directly managed stores in Japan were 39,266(up 4.6% year on year), a record high for first quarter sales. This mainly owed to the commencement of operation of large stores opened in theprevious fiscal year and robust retail unit sales at existing large stores. Gross profit per unit on a retail basis was on a par with the level a yearago.
Looking at consolidated operating profit, three months from March to May 2022 were included in the consolidation period of the Australiansubsidiary, with respect to which an equity share transfer was completed in July 2022, and this resulted in a decline of 1,278 million yen in
operating profit in the quarter under review.
Selling, general and administrative (SG&A) expenses decreased year on year. The decrease was primarily due to the transfer of equity in theAustralian subsidiary. On the other hand, SG&A expenses on a non-consolidated basis increased. The increase mainly reflected rises in personnel
cost and payment of commission, due to higher incentives and increases in the number of limited-term employees in preparation for the openingof large stores in the latter half of the fiscal year. The SG&A expenses-to-sales ratio remained level with past trends, at 13.6%.
As a result of the above, the consolidated business results for the first quarter under review were net sales of 105,258 million yen (down 22.4%
year on year), operating profit of 2,771 million yen (down 47.3%), ordinary profit of 2,696 million yen (down 46.6%), and profit attributable toowners of parent of 1,868 million yen (down 65.2%).
Regional segment-specific earnings are as indicated below:I. JapanThe results of the Japan segment were net sales of 104,701 million yen (up 15.6% year on year) and segment profit (operating profit) of 2,732
million yen (down 32.3% year on year). The Japan segment recorded higher revenue and lower profits, primarily due to increases in retail unit
sales and SG&A expenses.
II. Others
The results were net sales of 556 million yen (up 34.9% year on year) and segment profit (operating profit) of 0 million yen (in the previous
fiscal year, there was a loss of 3 million yen in the corresponding period).
The Australia segment has been excluded from the scope of consolidation, because all equity shares in the Australian subsidiary were sold in
the previous consolidated fiscal year.
(2) Analysis of financial position
AssetsTotal assets as of the end of the first quarter ended May 31, 2023 were 158,166 million yen (down 8.7% compared to the end of the previous
fiscal year).
Current assets were 115,159 million yen (down 12.4% compared to the end of the previous fiscal year), mainly reflecting a decrease in cash
and deposits (down 3,503 million yen) and a decrease in merchandise (down 12,114 million yen).
Non-current assets were 43,006 million yen (up 2.8% from the end of the previous fiscal year) due primarily to a decrease in buildings andstructures (down 331 million yen) and an increase in construction in progress (up 728 million yen).
Liabilities
Total liabilities as of the end of the first quarter under review were 96,186 million yen (down 13.0% compared to the end of the previous fiscalyear).
Current liabilities totaled 55,827 million yen (down 13.0% from the end of the previous fiscal year) chiefly as a result of a decrease in thecurrent portion of long-term borrowings (down 8,700 million yen) and a fall in the provision for bonuses (down 810 million yen).
Non-current liabilities were 40,358 million yen (down 13.1% compared to the end of the previous fiscal year) due to a fallin long-term borrowings (down 6,300 million yen), among other factors.
Net assets
Total net assets as of the end of the first quarter ended May 31, 2023 were 61,980 million yen (down 1.2% compared to the end of the previous
fiscal year), due chiefly to a decrease in retained earnings (down 771million yen) and an increase in share acquisition rights (up 107 million yen).
(3) Consolidated earnings forecast and other forward-looking statements
Looking at the consolidated earnings forecasts for the fiscal year ending February 29, 2024, there are no changes in the figures that were
presented in the “Summary of Consolidated Financial Results for the Fiscal Year Ending February 28, 2023 (Japanese GAAP)" announced onApril 14, 2023.
3Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2023

(Millions of yen)
As of May 31, 2023

37,473
3,927
84,432
6,173(528)
131,478

33,9703,961
72,317
5,436(525)
115,159

41,306(16,873)
24,433
236
(148)
88
5,077
(3,362)
1,715
136
67–
26,441

41,330(17,228)
24,102
236
(159)
76
5,243
(3,452)
1,790
136
796
231
27,133

1,300
86
2
1,389

1,334
84
2
1,421

0
29
76
5,045
3,955
4,435
449
(6)
13,984
41,815173,293

0
29
950
5,190
3,847
3,999441(6)14,451
43,006
158,166

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Total property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Leasehold and guarantee deposits
Construction assistance fund receivables
Deferred tax assets
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of February 28, 2023

(Millions of yen)
As of May 31, 2023

4,822
24,145
3,812
864
25,336
309
897
342
3,635
64,165

4,004
15,4453,083
567
23,440
459
87
342
8,398
55,82743,000
599
2,643
183
46,426
110,591

36,700
639
2,690
328
40,35896,186

4,157
5,250
56,738(4,344)61,801

4,157
5,250
55,966(4,344)61,029

284
284
147
468
62,702
173,293

266
266
255
428
61,980158,166

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Deposits received
Provision for bonuses
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term guarantee deposits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
Three months endedMay 31, 2022
May 31, 2023
Net sales
135,601
105,258
Cost of sales
113,198
88,142Gross profit
22,402
17,116
Selling, general and administrative expenses
17,145
14,344
Operating profit
5,256
2,771
Non-operating income
Interest income
937
Subsidy income
23–
Foreign exchange gains
26–
Other
24
17
Total non-operating income
8355
Non-operating expenses
Interest expenses
271
87
Foreign exchange losses
–
33
Other
15
9
Total non-operating expenses
286
130
Ordinary profit
5,053
2,696
Extraordinary income
Gain on sale of non-current assets
54–Subsidy income
5958
Other
10
2
Total extraordinary income
12460
Extraordinary losses
Loss on retirement of non-current assets
45
16
Other
15
1
Total extraordinary losses
60
18
Profit before income taxes
5,117
2,738
Income taxes - current
1,990
473
Income taxes - deferred(2,443)436
Total income taxes
(452)
909
Profit5,569
1,828
Profit (loss) attributable to non-controlling interests
192(40)
Profit attributable to owners of parent
5,377
1,868

6

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

7

Three months ended
May 31, 2022
5,569(Millions of yen)Three months ended
May 31, 2023
1,828

1,036
1,036
6,606

(17)
(17)
1,810

6,226

1,851

379

(40)