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, 2021
(Based on Japanese GAAP)
July 14, 2021
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:

July 15, 2021–

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

03-5208-5503(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2021 (from March 1, 2021 to May 31, 2021)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parentMillions of yen% Millions of yen% Millions of yen% Millions of yen%Three months ended May 31, 2021
117,013
39.8
5,084
–
4,911
–
2,752
–
Three months ended May 31, 2020
83,724(7.2)(153)–(552)–(914)–
Earnings per share

Diluted earnings per share

Yen
27.41
(9.06)

Three months ended May 31, 2021
Three months ended May 31, 2020

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
178,435
177,222

As of May 31, 2021
As of February 28, 2021

Equity ratio

Millions of yen
47,46545,015

Net assets per share
%
25.9
24.8

Yen
460.72438.18

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
5.30

Yen–

Yen
5.30

Yen
10.60

2.30

–

2.30

4.60

Year ended February 28, 2021
Year ending February 28, 2022
Year ending February 28, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2022 (from March 1, 2021 to February 28, 2022)

Net sales
Millions of yen
Six months ending
August 31, 2021
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

198,700

11.6

8,400

107.2

7,850

149.4

3,900

183.5

38.84

405,400

6.5

15,00041.9

13,900

44.2

7,100

378.2

70.71

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2021
(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, 2021

106,888,000 shares As of February 28, 2021

106,888,000 shares

Number of treasury shares at the end of the period
As of May 31, 2021

6,480,601 shares As of February 28, 2021

6,480,601 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2021

100,407,399 shares Three months ended May 31, 2020

2

100,896,559 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, 2021), retail unit sales at directly managed stores in Japan were 38,808(up 11.6% year on year), a record high for first quarter sales. This result was primarily attributable to the following factors:(i) The number of visitors to stores increased due to a significant recovery in the used car market compared to the level of the previous fiscal year
in which the Company suffered the effects of the COVID-19 pandemic.
(ii) Large stores that opened in the previous fiscal year commenced operation.
(iii) Efforts were made to boost the number of visitors to existing stores, including large stores, through the effective placement ofadvertisements.
In addition, with an increase in the number of visitors to stores due to the recovery of the new car market, the number of purchases at directly
managed stores in Japan increased year on year.
At a subsidiary in Australia, the number of new car sales rose, reflecting favorable business conditions in the Western Australian market
attributable to a rise in the price of iron ore. In Western Australia, sales of used cars remained strong, reflecting the effect of ongoing measures toboost sales. In addition, with the yen continuing to weaken from the year-ago level against the Australian dollar, the Australian subsidiaryrecorded an increase in sales and profit.
Selling, general and administrative expenses increased on a consolidated basis due to a reaction to the transfer of part of selling, general andadministrative expenses to an extraordinary loss posted as a loss on COVID-19 in the previous fiscal year, coupled with the impact of a
weakened yen. In contrast, even in a situation where retail unit sales hit a record high, advertising expenses decreased, reflecting an improvementin the efficiency of internet-based customer attraction efforts.
Given the relocation of the head office, the Company recorded expenses for moving out as head office relocation expenses in the extraordinary
loss category. The relocation expenses, which amounted to 856 million yen in total, expensing of unamortized balances of the non-current assetsof the current head office and the cost of restoration to the original condition, among other expenses.
As a result of the above, the consolidated business results for the first quarter under review were net sales of 117,013 million yen (up 39.8% year
on year), operating profit of 5,084 million yen (as compared to an operating loss of 153 million yen in the same period of the previous year),ordinary profit of 4,911 million yen (as compared to an ordinary loss of 552 million yen in the same period of the previous year) and profit
attributable to owners of parent of 2,752 million yen (as compared to a loss attributable to owners of parent of 914 million yen in the same periodof the previous year), achieving record highs in terms of results for the first quarter.
Regional segment-specific earnings are as indicated below:
I. Japan
The Japan segment recorded net sales of 82,459 million yen (up 21.2% year on year) and segment profit (operating profit) of 3,936 million yen(as compared to a segment loss (operating loss) of 136 million yen in the same period of the previous fiscal year). The retail unit sales increased
mainly due to a rise in the number of visitors to stores reflecting the recovery of the used car market, the operation of large stores that opened in
the previous fiscal year, and an increase in the number of visitors to existing stores. In addition, the number of purchases at directly managed
stores climbed, reflecting a rise in the number of visitors to stores due to the recovery of the new car market.
II. Australia
The Australia segment resulted in net sales of 34,028 million yen (up 123.6% year on year) and segment profit (operating profit) of 1,169 million
yen (up 577.3% year on year). The number of new car sales rose against the backdrop of favorable business conditions in the Western Australianmarket attributable to a rise in the price of iron ore. Sales of used cars also remained strong, reflecting the effect of ongoing measures to boost
sales. Moreover, with the yen continuing to weaken from the year-ago level against the Australian dollar, the segment recorded an increase insales and profit.
(2) Analysis of financial position
AssetsTotal assets as of the end of the first quarter ended May 31, 2021 were 178,435 million yen (up 0.7% compared to the end of the previous fiscalyear).
Current assets were 128,091 million yen (up 1.2% compared to the end of the previous fiscal year), mainly reflecting an increase in cash anddeposits (up 4,114 million yen), partly offset by decreases in notes and accounts receivable - trade (down 1,811 million yen) and merchandise(down 1,367 million yen).
Non-current assets decreased 0.5% from the end of the previous fiscal year to 50,343 million yen mainly due to a decrease of 440 million yen inbuildings and structures.

3

Liabilities
Total liabilities as of the end of the first quarter ended May 31, 2021 were 130,970 million yen (down 0.9% compared to the end of the previousfiscal year).
Current liabilities were 46,728 million yen (down 1.7% compared to the end of the previous fiscal year) due to a fall in the provision for bonuses(down 1,030 million yen), among other factors.
Non-current liabilities were 84,241 million yen (down 0.5% compared to the end of the previous fiscal year) due to a fall in long-termborrowings (down 324 million yen), among other factors.
Net assets
Total net assets as of the end of the first quarter ended May 31, 2021 were 47,465 million yen (up 5.4% compared to the end of the previousfiscal year) due chiefly to an increase in retained earnings (up 2,195 million yen).
(3) Consolidated earnings forecast and other forward-looking statements
Looking at consolidated earnings forecasts for the fiscal year ending February 28, 2022, with the consolidated results for the first quarter underreview surpassing assumptions, the Company has revised the figures presented in the "Summary of Consolidated Financial Results
for the Year Ended February 28, 2021 (Based on Japanese GAAP)" announced on April 14, 2021.
For more details, please refer to "Notice on Revisions to Results Forecasts" announced today.

4Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2021

(Millions of yen)
As of May 31, 2021

43,1796,875
72,913
3,966(328)
126,605

47,294
5,064
71,5464,510(323)
128,091

36,918(16,411)
20,507153(32)
121
4,335(3,606)729
218
121
21,69737,302(17,236)
20,066124(34)89
4,342(3,655)687
218
183
21,245

1,717
7,698
4,996
14,412

1,645
7,673
4,653
13,972

139
13130
5,835
4,614
3,253
544
(43)
14,50650,616
177,222

146
205
45
5,826
4,504
3,914
525
(43)
15,12550,343
178,435

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 progressTotal 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

5

As of February 28, 2021

(Millions of yen)
As of May 31, 2021

20,940
1,117
342
4,586
2,052
9,010
205
1,167
737
715
6,658
47,534

21,0381,136
347
4,014
2,006
8,166
331
136
793
896
7,860
46,72879,169
506
2,546
1,616
584
249
84,672132,206

78,845
571
2,247
1,621
658
296
84,241130,970

4,157
4,384
39,665(4,344)
43,862

4,157
4,384
41,861(4,344)46,058

134
134
1,018
45,015
177,222

201
201
1,205
47,465
178,435

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 bonusesProvision 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
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)Three months ended
Three months ended
May 31, 2020
May 31, 2021
Net sales
83,724
117,013
Cost of sales
69,002
95,264Gross profit
14,722
21,748Selling, general and administrative expenses
14,875
16,663Operating profit (loss)
(153)
5,084
Non-operating income
Interest income
1117
Foreign exchange gains–11Other
1733
Total non-operating income
2962
Non-operating expenses
Interest expenses
247
232
Foreign exchange losses
110–
Share of loss of entities accounted for using equity
530
methodOther
16
2
Total non-operating expenses
428
235
Ordinary profit (loss)
(552)
4,911
Extraordinary income
Compensation income–
25
Subsidy income
386
3
Other
0
1
Total extraordinary income
386
31
Extraordinary losses
Loss on retirement of non-current assets
154
0Loss on store closings
72–
Loss on COVIT19678
1Head office relocation expenses–
856
Other–
14
Total extraordinary losses
905
874
Profit (loss) before income taxes(1,071)
4,069
Income taxes - current
178
1,843
Income taxes - deferred(356)(693)
Total income taxes
(177)
1,149
Profit (loss)
(893)
2,919
Profit attributable to non-controlling interests
20
167
Profit (loss) attributable to owners of parent
(914)
2,752

7

Consolidated statements of comprehensive income (cumulative)

Profit (loss)
Other 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 to noncontrolling interests

8

Three months ended
May 31, 2020
(893)

(Millions of yen)Three months ended
May 31, 2021
2,919

(89)

100

(18)

(13)

(107)
(1,001)86
3,006(1,015)2,819

13186