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 Six Months Ended August 31, 2020
(Based on Japanese GAAP)
October 14, 2020
Company name:

IDOM Inc.

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

URL

https://221616.com

President
General Manager, Finance & IR Division

Yusuke Hatori
Masayuki Matsumoto

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

October 15, 2020
November 6, 2020

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

Yes
Yes

TEL

03-5208-5503(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended August 31, 2020 (from March 1, 2020 to August 31, 2020)(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%
Six months ended August 31, 2020
178,109(0.7)
4,053 (12.3)
3,147 (13.4)
1,375 (35.3)
Six months ended August 31, 2019179,276
24.6
4,624 937.3
3,634
–
2,124
–
Earnings per share

Diluted earnings per share

Yen
13.67
20.95

Six months ended August 31, 2020
Six months ended August 31, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
180,186
183,783

As of August 31, 2020
As of February 29, 2020

Equity ratio

Millions of yen
44,46742,586

Net assets per share%
24.3
22.9

Yen
436.51415.42

2. Cash dividends
Annual dividends per share

Year ended February 29, 2020
Year ending February 28, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.60
5.30

Yen–

Yen
0.60

Yen
1.20

–

5.30

10.60

Year ending February 28, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2021 (from March 1, 2020 to February 28, 2021)

Net sales

Full year

Millions of yen
360,000

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
(0.5)
8,700
(4.3)
7,000
1.9
4,500
26.9
44.82

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2020(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 August 31, 2020

106,888,000 shares As of February 29, 2020

106,888,000 shares

Number of treasury shares at the end of the period
As of August 31, 2020

6,480,571 shares As of February 29, 2020

5,480,571 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2020

100,651,994 shares Six months ended August 31, 2019

2101,407,437 shares1. Summary of operating results, etc.
1. Operating results(1) Analysis of operating results
In the first six months of the fiscal year under review (the “first half”), retail car sales in all directly managed stores in Japan increased 4.1%
from the same term of the previous fiscal year, to total 70,590, even when the stay-at-home requests issued by the central and local
governments due to COVID-19 infection were effective.
The Company temporarily reduced retail prices from April until mid-May but brought them back to their previous levels in late May. In these
retail price changes, gross profit per car from retail sales in the first half was on par with the level of the same term a year ago.
Due to the impact of the COVID-19 infection, the number of cars purchased and gross profit per car in wholesale decreased mainly in the firstquarter of the fiscal year. As a result, the number of cars purchased and gross profit per car in wholesale fell in the first half.
The Company curbed advertising expenses based on prospects for sales demand that took into account the impact of the COVID-19 infection.
Cost control, including travel and transport costs, was also implemented and overall SG&A expenses decreased.
In response to the stay-at-home requests and the declaration of a state of emergency issued by the central and local governments due to thespread of the COVID-19 infection, the Company reduced its business hours and temporarily closed stores in Japan and Australia. The fixed
cost and expenses incurred during the temporary suspension were posted as an extraordinary loss related to the infectious disease. Moreover, inan effort to improve store efficiency, the Company closed stores earlier than originally planned, taking into account the effect of the COVID-19infection, among other factors. Consequently, the loss on retirement of non-current assets and loss on store closings posted under extraordinary
losses increased.
As a result of the above, the consolidated business results for the first half were net sales of 178,109 million yen (down 0.7% year on year),
operating profit of 4,053 million yen (down 12.3%), ordinary profit of 3,147 million yen (down 13.4%) and profit attributable to owners ofparent of 1,375 million yen (down 35.3%).
The number of visitors to the directly managed stores in Japan that fell due to the impact of the COVID-19 infection recovered rapidly,
following the lifting of the declaration of a state of emergency in late May. Accordingly, the Company believes at the present time that theimpact of the COVID-19 infection ceased to exist in May.
Regional segment-specific earnings are as indicated below:
I. Japan
The Japan segment resulted in net sales of 138,963 million yen (up 0.5% year on year) and segment income (operating profit) of 3,578 million
yen (down 29.2% year on year). Although the number of cars sold in retail trade grew strongly, the number of cars purchased and gross profit
per car in wholesale decreased mainly in the first quarter due to the impact of the COVID-19 infection.
II. Australia
The Australia segment recorded net sales of 38,289 million yen (down 3.8% year on year) and segment income (operating profit) of 900
million yen (as compared to a segment loss (operating loss) of 195 million yen in the same period of the previous fiscal year). Given theimpact of the COVID-19 infection, the number of visitors to stores declined. Moreover, personnel expenses that correspond to government
subsidies related to the COVID-19 infection are transferred to and posted as a loss related to the infectious disease under extraordinary losses.
This was a factor for the profit growth.
(2) Analysis of financial position
AssetsTotal assets as of the end of the first six months ended August 31, 2020 were 180,186 million yen (down 2.0% compared to the end of theprevious fiscal year).
Current assets totaled 125,763 million yen (down 1.8% from the end of the previous fiscal year) as a result of a decrease in merchandise (down14,879 million yen) and a fall in notes and accounts receivable - trade (down 2,444 million yen) despite an increase in cash and deposits (up15,240 million yen).
Non-current assets decreased 2.2% from the end of the previous fiscal year to 54,422 million yen due to such factors as a decrease of 906
million yen in buildings and structures and a fall of 274 million yen in construction assistance fund receivables.
Liabilities
Total liabilities as of the end of the first six months ended August 31, 2020 were 135,718 million yen (down 3.9% compared to the end of theprevious fiscal year).
Current liabilities totaled 49,973 million yen (down 11.2% from the end of the previous fiscal year) as a result of a decrease in accounts
payable - trade (down 5,461 million yen) and a fall in advances received (down 1,912 million yen).
Non-current liabilities stood at 85,744 million yen (up 1.0% from the end of the previous fiscal year) due primarily to a rise in long-termborrowings (up 239 million yen).
3

Net assets
Total net assets as of the end of the first six months ended August 31, 2020 were 44,467 million yen (up 4.4% compared to the end of theprevious fiscal year) due to an increase in retained earnings (up 1,314 million yen).
(3) Consolidated earnings forecast and other forward-looking statements
The Company has revised its consolidated earnings forecasts for the fiscal year ending February 28, 2021, announced on April 14, 2020. For
more details, please refer to “Notice of Differences between Results and the Forecast for the First Six Months and Revision of the Full-year
Forecast” announced today (October 14, 2020).

4

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 29, 2020

(Millions of yen)
As of August 31, 2020

37,295
6,715
79,1195,143(158)
128,115

52,536
4,270
64,2404,928(212)
125,763

37,000(14,742)
22,257
256
(21)
234
4,196
(3,487)708
218
97
23,51736,412(15,061)
21,351
185
(25)
159
4,216
(3,510)706
218
67
22,504

1,877
10,911
4,604
17,393

1,794
11,287
4,801
17,882

152
119
13
5,938
5,142
2,811
625
(48)
14,75655,667
183,783

140
119
13
5,801
4,868
2,557
580
(47)
14,03554,422
180,186

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
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of February 29, 2020

(Millions of yen)
As of August 31, 2020

21,002935
11,079
4,034
1,624
9,773
274
823
662
544
5,544
56,29915,5401,043
11,044
3,644
1,229
7,861
395
1,074
721
717
6,699
49,97379,824
432
2,633
1,386
426
193
84,897141,196

80,063448
2,5741,499
492
667
85,744
135,718

4,157
4,032
38,773(3,947)43,016

4,157
4,384
40,088(4,344)44,286

(889)
(889)
3456
42,586
183,783

(456)
(456)
3635
44,467
180,186

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term guarantee deposits
Asset retirement obligations
Deferred tax liabilities
Other provisions
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

6

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, 2019
August 31, 2020
Net sales
179,276
178,109
Cost of sales
142,478
144,145
Gross profit
36,79733,963
Selling, general and administrative expenses
32,17329,910Operating profit
4,624
4,053
Non-operating income
Interest income24
22
Foreign exchange gains–
5Interest on tax refund
18–
Other
47
15
Total non-operating income
8942
Non-operating expenses
Interest expenses
676
547
Foreign exchange losses
313–
Share of loss of entities accounted for using equity
86366
methodOther
135
Total non-operating expenses
1,079
948
Ordinary profit
3,634
3,147
Extraordinary income
Subsidy income
22
1,232
Other
17
Total extraordinary income
23
1,239
Extraordinary losses
Loss on retirement of non-current assets
224
234
Loss on store closings–
34
Settlement package
140–
Loss on COVIT19
–
1,333
Other
166
Total extraordinary losses
366
1,669
Profit before income taxes
3,292
2,717
Income taxes - current
1,559
968
Income taxes - deferred(368)251
Total income taxes
1,1901,220
Profit2,102
1,497
Profit (loss) attributable to non-controlling interests(22)
121
Profit attributable to owners of parent
2,124
1,375

7

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

8Six months ended
August 31, 2019
2,102(Millions of yen)Six months ended
August 31, 2020
1,497(1,069)

535

86(62)

(983)
1,118

472
1,969

1,238

1,807(120)161

Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2020

Six months ended
August 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase in provision for merchandise warranties
Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Interest expenses
Foreign exchange losses (gains)
Subsidy income
Loss on retirement of non-current assets
Settlement package
Loss on COVID19
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in accounts receivable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in deposits received
Increase (decrease) in accrued expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Subsidies received
Payments for loss on COVID-19
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Loan advances
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Payments of construction assistance fund receivables
Collection of construction assistance fundreceivables
Other, net
Net cash provided by (used in) investing activities

9

3,292
1,518
325

2,717
1,446
330

46

52

176
71(24)

251
59(22)

86

366

676
361
(22)
224
140
–
22
(113)

547
40
(1,232)
234
–
1,333
265
15,638

1,741

69

3,040
1,358
68
63
820
863
410
15,147
23
(643)
180
22
–
14,731271
759(6,085)
(389)
120
256
627
17,66120(544)(1,586)
1,232(1,333)
15,44876(1,433)
(598)
(121)
(320)
(56)

–(443)
(352)
(91)
(63)
(18)

123

154

(53)

(31)

255

305

0(2,129)6(533)

(Millions of yen)Six months ended
August 31, 2020

Six months ended
August 31, 2019
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Proceeds from share issuance to non-controllingshareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

10(8,100)16,450(12,517)
–
(553)

108
234
(45)
(397)
(61)

–

370

(0)
(4,722)

–
208

(201)

116

7,677
22,97030,64815,24037,29552,536