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, 2022
(Based on Japanese GAAP)
October 14, 2022
Company name:

IDOM Inc.

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

URL

https://221616.com

President
CFOYusuke Hatori
Ryo Nishihata

TEL

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

October 17, 2022
November 7, 2022

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

Yes
Yes

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, 2022 (from March 1, 2022 to August 31, 2022)(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, 2022
225,478
(1.0)
8,616
(8.7)
8,280
(8.1)
7,516
41.5
Six months ended August 31, 2021
227,77527.9
9,440 132.9
9,011 186.3
5,311 286.1
Earnings per share

Diluted earnings per share

Yen
74.86
52.90

Six months ended August 31, 2022
Six months ended August 31, 2021

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2022
As of February 28, 2022

Net assets

Millions of yen
173,255
189,766

Equity ratio

Millions of yen
57,55855,709Net assets per share%
32.9
28.5

Yen
567.93537.97

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
2.30
16.20

Yen–

Yen
2.30

Yen
4.60

–

16.20

32.40

Year ending February 28, 2023 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)

Full year

Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
410,000 (10.8)
17,000(8.0)
16,400(6.6)
12,85019.0
127.981

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes
No(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:
Yes
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, 2022

106,888,000 shares As of February 28, 2022

106,888,000 shares

Number of treasury shares at the end of the period
As of August 31, 2022

6,480,651 shares As of February 28, 2022

6,480,641 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2022

100,407,350 shares Six months ended August 31, 2021

2100,407,399 shares

1.

Qualitative Information on Quarterly Financial Results(1) Analysis of operating results
In the Second quarter of the fiscal year under review (March 1 to August 31, 2022) (the “first half”), retail unit sales at directly managed
stores in Japan were 70,186, (down 3.5% year on year). Retail unit sales decreased due to a decline in the number of directly managed domestic
stores, but retail unit sales at large stores increased year on year.
The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29 issued on March 31,2020; hereinafter the "Revenue Recognition Accounting Standard"), etc. has been applied since the beginning of the first three months of theconsolidated fiscal year under review. Due to the adoption of the Revenue Recognition Accounting Standard and other standards, operating
profit decreased 426 million yen for the first half.
Transfer of shares in the Australian subsidiaries completed in July, 2022. Consequently, the consolidation period for the Australian subsidiaryhas become three months from March to May 2022, and the Australia segment recorded a decline in profit of 1,117 million yen year on year.
Selling, general and administrative expenses decreased, reflecting lower rent expenses due to the head office relocation and a decline inpersonnel expenses attributable to a decrease in the number of employees because of restrained new graduate hiring.
As a result of the transfer of the shares of the Australian subsidiary, the Company posted a gain on sales of shares of subsidiaries of 795
million yen for the consolidated results and 2,871 million yen for the nonconsolidated results as extraordinary income.
As a result of the above, the consolidated business results for the first six months under review were net sales of 225,478 million yen (down
1.0% year on year), operating profit of 8,616 million yen (down 8.7%), ordinary profit of 8,280 million yen (down 8.1%), and profit attributableto owners of parent of 7,516 million yen (up 41.5%).
Regional segment-specific earnings are as indicated below:
I. JapanThe results of the Japan segment were net sales of 179,772 million yen (up 14.4% year on year) and segment profit (operating profit) of
7,386 million yen (up 3.8% year on year). The Japan segment recorded an increase in both sales and profit, chiefly reflecting a rise in the vehicle
unit price and a decrease in selling, general & administrative expenses.
II. Australia
The results of the Australia segment were net sales of 44,607 million yen (down 35.8% year on year) and segment profit (operating profit) of
1,284 million yen (down 46.5% year on year). Results of the Australian subsidiary underperformed the year-ago level because the consolidation
period in the first half has become three months due to the share transfer.
Results for each business segment are described below.
Starting with the first quarter under review, the domestic used car sales business and the new car sales business conducted in Australia
including non-consolidated sales of subsidiaries Tokyo My Car and Gulliver Insurance are voluntarily disclosed as the domestic core businesssegment and the Australian business segment, respectively.
I. Domestic Core Business
The results of the domestic core business segment were net sales of 179,275 million yen (up 19.0% year on year) and segment profit (operatingprofit) of 7,434 million yen (up 8.6% year on year). Retail unit sales at directly managed domestic stores decreased due to a decline in thenumber of stores. However, the segment recorded an increase in both sales and profit, reflecting steady retail unit sales at large stores and adecline in selling, general and administrative expenses.
II. Australian Business
The results of the Australia segment were net sales of 44,607 million yen (down 35.8% year on year) and segment profit (operating profit) of
1,284 million yen (down 46.5% year on year). Results of the Australian subsidiary underperformed the year-ago level because the consolidation
period in the first half has become three months due to the share transfer.
Previous Second quarter period (From March 1, 2021 to August 31, 2021)
Domestic core
Net sales
Segment profit(Operating profit)

Australia

Other (Differences)

Amortization of
goodwill

Consolidated

150,634

69,4997,641-

227,775

6,845

2,401

433

(239)

9,440

3

Second quarter under review (From March 1, 2022 to August 31, 2022)
Domestic core
Net sales
Segment profit(Operating profit)

Australia

Amortization of
goodwill

Other (Differences)

Consolidated

179,275

44,607

1,596-

225,478

7,434

1,284

5(106)

8,616(2) Analysis of financial positionAssets
Total assets as of the end of the first six months ended August 31, 2022 were 173,255 million yen (down 8.7% compared to the end of theprevious fiscal year).
Current assets were 131,215 million yen (down 7.0% compared to the end of the previous fiscal year), mainly reflecting an increase in cash
and deposits (up 10,806 million yen), partly offset by decreases in notes and accounts receivable - trade (down 2,745 million yen) andmerchandise (down 18,936 million yen).
Non-current assets stood at 42,039 million yen (down 13.5% from the end of the previous fiscal year), due primarily to decreases in goodwill(down 5,904 million yen) and other intangible assets (down 4,312 million yen), despite an increase in buildings and structures (up 1,314 millionyen).
Liabilities
Total liabilities as of the end of the first six months ended August 31, 2022 were 115,696 million yen (down 13.7% compared to the end of theprevious fiscal year).
Current liabilities totaled 65,383 million yen (up 7.0% from the end of the previous fiscal year) due to a fall in the accounts payable - trade(down 18,828 million yen), a decrease in advances received (down 9,548 million yen from the end of the previous fiscal year) as well as anincrease in contract liabilities (up 20,335 million yen from the end of the previous year) attributable mainly to the adoption of the Revenue
Recognition Accounting Standard, and an increase in the current portion of long-term borrowings (up 20,000 million yen)
Non-current liabilities were 50,312 million yen (down 31.1% compared to the end of the previous fiscal year) due to a fall in long-termborrowings (down 20,378 million yen), among other factors.
Net assets
Total net assets as of the end of the first six months ended August 31, 2022 were 57,558 million yen (up 3.3% compared to the end of theprevious fiscal year) due chiefly to an increase in retained earnings (up 1,996 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, 2023, announced on April 14, 2022. For
more details, please refer to “Notice of Differences between Results and Forecasts for the First Six Months of Fiscal Year Ending February 28,2023, Revision of Full-year Forecasts, and Posting of Extraordinary Income (Gain on Extinguishment of Tie-in Shares) Associated withAbsorption-type Merger of a Subsidiary” announced today (October 14, 2022).

4

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2022

(Millions of yen)
As of August 31, 2022

45,6705,620
85,363
4,907(416)141,146

56,4772,875
66,426
5,835(398)
131,215

37,102(16,061)
21,040
298
(60)
238
4,279
(3,114)
1,164
136
1,083
23,66338,447(16,091)
22,355
237
(105)
132
4,559
(3,236)
1,323
136
1,102
25,050

1,465
5,995
4,314
11,775

1,391
90
2
1,484

20
129
228
4,405
4,289
3,677
438
(8)
13,181
48,620189,766

0
29
81
4,788
4,167
6,015
428
(6)
15,50542,039173,255

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

5

As of February 28, 2022

(Millions of yen)
As of August 31, 2022

23,618
1,101
10,000
4,713
3,960
9,548
–
215
1,965
884
1,327
3,750
61,0854,790–
30,000
2,143
1,407
–
20,335
176
1,561
–
408
4,561
65,38367,523
587
2,236
1,535
680
407
72,972
134,057

47,145
613
2,371
–
–
183
50,312
115,696

4,157
4,361
49,673(4,344)53,847

4,157
5,250
51,669(4,344)56,732168
168
1,693
55,709189,766

291
291
533
57,558173,255

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Advances received
Contract liabilities
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
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, 2021
August 31, 2022
Net sales
227,775
225,478
Cost of sales
185,308
187,209
Gross profit
42,46638,269Selling, general and administrative expenses
33,02529,652
Operating profit
9,440
8,616
Non-operating income
Interest income
1524
Subsidy income
2625
Other
52
37
Total non-operating income
9387
Non-operating expenses
Interest expenses
464
374
Foreign exchange losses
55
9
Other
438
Total non-operating expenses
523
422
Ordinary profit
9,011
8,280
Extraordinary income
Gain on sale of non-current assets
1554
Gain on sale of shares of subsidiaries and associates–795
Gain on liquidation of subsidiaries–
19
Compensation income
25–
Subsidy income
491
Other
2
16
Total extraordinary income
47
976
Extraordinary losses
Loss on retirement of non-current assets
187
51
Head office relocation expenses
870
–
Other
49
24
Total extraordinary losses
1,107
76
Profit before income taxes
7,951
9,181
Income taxes - current
2,801
1,491
Income taxes - deferred(513)41
Total income taxes
2,288
1,532
Profit5,662
7,648
Profit attributable to non-controlling interests
351
132
Profit attributable to owners of parent
5,3117,516

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 to noncontrolling interests

8

Six months ended
August 31, 2021
5,662(Millions of yen)Six months ended
August 31, 2022
7,648(233)310

17–(216)
5,446

310
7,959

5,159

7,639

286320Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2022

Six months ended
August 31, 2021
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
Interest expenses
Foreign exchange losses (gains)
Subsidy income
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Loss on COVID19
Loss (gain) on liquidation of subsidiaries
Headquarters relocation cost
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

9

7,951
1,406
239
14(36)
92
(15)
464
189
(30)

9,181
1,322
106
67(403)
(884)
(24)
374
377
(116)

–

(795)

(15)
187
2–
870
2,467
588

(54)
51
–
(19)
–
1,919
(6,296)

(20)

96

(228)
(2,390)(1,780)(138)
54(408)877
10,34115(461)(1,815)
4(2)
8,081

808
1,157
1,703
(665)
(38)
480
1,984
10,33324(369)(2,786)
91–7,292

(Millions of yen)Six months ended
August 31, 2022

Six months ended
August 31, 2021
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Loan advances
Proceeds from collection of loans receivable
Purchase of shares of subsidiaries and associates
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Payments of construction assistance fund receivables
Proceeds from collection of construction assistancefund receivables
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Proceeds from liquidation of subsidiaries
Other, net
Net cash provided by (used in) investing activities

10(1,079)
130
(230)
(18)
(41)
–
(8)
(93)

(3,558)
141
(213)
(10)
(2,823)
227
–
(519)

91

138

(171)

(101)

218

223

–

8,597

––
(1,204)

119
(0)
2,220

(Millions of yen)Six months ended
August 31, 2022

Six months ended
August 31, 2021
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Proceeds from share issuance to non-controllingshareholders
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
Increase in cash and cash equivalents resulting frominclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

1124(1,950)
(0)
(536)

–
(169)
(0)
(231)

–

1,387

(2,462)

986

(107)

306

4,306
43,17910,80645,67016–

47,50256,477