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 Nine Months Ended November 30, 2017
(Based on Japanese GAAP)
January 12, 2018
Company name:
IDOM Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

7599
President

URL

https://221616.com
Yusuke Hatori

Inquiries:
General Manager, Finance IR Division
Scheduled date to file Quarterly Securities Report:

Masayuki Matsumoto
January 12, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

NoTEL

03-5208-5503(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended November 30, 2017 (from March 1, 2017 to November 30, 2017)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended November 30, 2017
Nine months ended November 30, 2016

Millions of yen204,338
191,033

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
7.0
5,204
29.4
4,481
14.5
2,749
25.5
25.6
4,022 (39.1)
3,913 (42.9)
2,190 (48.1)

Earnings per share

Diluted earnings per share

Yen
27.11
21.60

Nine months ended November 30, 2017
Nine months ended November 30, 2016

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2017
As of February 28, 2017

Net assets

Millions of yen
126,412114,047

Equity ratio

Millions of yen
40,976
39,581

Net assets per share%
31.9
33.9

Yen
397.21381.05

2. Cash dividends
Annual dividends per share

Year ended February 28, 2017
Year ending February 28, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
6.00
3.50

Yen–

Yen
6.00

Yen
12.00

–

3.50

7.00

Year ending February 28, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2018 (from March 1, 2017 to February 28, 2018)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
259,500
3.2
5,500
22.3
4,900
17.8
2,800
24.6
27.61

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended November 30, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

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:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

Yes
No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2017

106,888,000 shares As of February 28, 2017

106,888,000 shares

Number of treasury shares at the end of the period
As of November 30, 2017

5,480,470 shares As of February 28, 2017

5,480,350 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended November 30, 2017

101,407,608 shares Nine months ended November 30, 2016

2

101,407,672 shares

Analysis of Operating Results and Financial Position for the Third Quarter(1) Analysis of consolidated operating results
In the third quarter of the fiscal year under review (March 1, 2017 to November 31, 2017) retail car sales from all directly
managed stores totaled 93,114 cars, up 32.5% from the same term last year. This was attributable to an increase in the number ofdisplay sales stores such as “Gulliver OUTLET” and foreign car specialized “LIBERALA”, as well as reinforcement in retail sales
at the original Gulliver stores which were primarily focused on purchasing of used cars.
SG&A expenses increased with a rise in store management expenses incidental to the increase in the number of display sales
stores.
In relation to the conclusion of a syndicated loan agreement (announced on March 15, 2017), arrangement fees were paid to thearranger institution, and this is recorded in non-operating expenses as interest expenses.
Amid the stagnation in new car market in Western Australia, the segment performance for the Australia business recorded a decline
in operating losses.
As a result of the above, consolidated business results for the third quarter were net sales of 204,338 million yen (up 7.0% from thesame term last year.), operating income of 5,204 million yen (up 29.4%), ordinary income of 4,481 million yen (up 14.5%), andprofit attributable to owners of parent of 2,749 million yen (up 25.5%).
Regional segment-specific earnings are as indicated below.
I. JapanJapan segment resulted in net sales of 169,871 million yen (up 7.7% from the same term last year) and segment income (operatingincome) of 5,935 million yen (up 36.7%). An increase in retail car sales resulted in increases in both net sales and operating
income.
II. Australia
Australia segment recorded net sales of 33,014 million yen (up 3.3% from the same term last year) and segment losses (operatinglosses) of 473 million yen (operating loss in the same term last year were 47 million yen) as the new car market in Western
Australia underperformed the same term last year. Quaterly (3 months) net sales improved year on year in the second quarter andthird quarter.

(2) Analysis of financial position
Assets
As of the end of third quarter ended November 30, 2017, total assets were 126,412 million yen (up 10.8% compared to the end of
the previous fiscal year, February 28, 2017).
Current assets were 75,839 million yen (up 18.9% compared to the end of the previous fiscal year) on increased cash and deposits(up 10,505 million yen).
Non-current assets were 50,573 million yen (up 0.6 % compared to the end of the previous fiscal year) on increased buildings andstructures (up 1,137million yen) offsetting decreased goodwill (down 526 million yen) and decreased construction in progress(down 402 million yen).
Liabilities
As of the end of third quarter ended November 30, 2017, total liabilities were 85,435 million yen (up 14.7% compared to the endof the previous fiscal year)
Current liabilities were 28,671 million yen (down 2.8% compared to the end of the previous fiscal year) on decreased short-term
3loans (down 2,135 million yen).
Non-current liabilities were 56,764 million yen (up 26.2% compared to the end of the previous fiscal year) on increased long-termloans (up 11,905 million yen).
Net assets
As of the end of third quarter ended November 30, 2017, total net assets were 40,976 million yen (up 3.5% compared to the end of
the previous fiscal year) due to an increase in retained earnings (up 1,786 million yen).

(3) Consolidated earnings forecast and other forward-looking information
There are no changes to our consolidated earnings forecasts for FY2018 from the figures released on April 13, 2017 in ourSummary of Consolidated Financial Results for the Year Ended February 28, 2017 (Based on Japanese GAAP).

Notes to Changes in Accounting Estimates
The Company estimates and records provision for future losses due to repairs occured in relation to warranties offered for cars
retailed. The Company changed the rule in estimating provision due to increased accuracy based on actual repairment history

and other factors. As a result of this change, the cost of sales declined by 350 million yen, and operating income, ordinary
income and profit attributable to owners of parent increased by the same amount.

4

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2017

(Millions of yen)
As of November 30, 201714,337
4,655
41,333
785
2,717
(64)
63,76524,842
4,863
41,702
1,061
3,416
(47)
75,83929,766(10,134)
19,632
312(100)
212
4,097(3,088)
1,009
218
96122,033

32,017(11,248)
20,768
123
(67)
56
4,313
(3,337)975
218
559
22,578

3,201
9,687
4,024
16,914

3,152
9,161
3,798
16,112

40
247
229
5,033
5,214
361
533
(325)
11,33450,281
114,047

37
250
223
5,283
5,377
396
713
(402)
11,881
50,573
126,412

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciationBuildings 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
Lease 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, 2017

(Millions of yen)
As of November 30, 201712,317
3,408
–
3,885
679
4,228
383
651
1,149
175
2,602
29,483

12,551
1,273
19
3,080
1,524
3,951
222
179
928
238
4,701
28,671

40,774
529
188
1,866
1,127
425
70
44,98374,466

52,680
489
–
1,965
1,043
394
191
56,76485,435

4,157
4,032
33,821(3,947)38,063

4,157
4,032
35,606(3,947)
39,848

578
578
5
934
39,581
114,047

431
431
7689
40,976
126,412

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other provision
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Long-term guarantee deposited
Provision for directors' retirement benefits
Asset retirement obligations
Deferred tax liabilities
Other provision
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equityCapital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
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)
Nine months ended
Nine months ended
November 30, 2016
November 30, 2017
Net sales
191,033
204,338
Cost of sales
145,223
155,485
Gross profit
45,81048,852
Selling, general and administrative expenses
41,78743,648Operating income
4,022
5,204
Non-operating income
Interest income
38
38
Reversal of allowance for doubtful accounts
0–income of compensation for damage
36
7
Foreign exchange gains
168
–
Other
76
23
Total non-operating income
319
70
Non-operating expenses
Interest expenses
350
570
Foreign exchange losses–
76
Share of loss of entities accounted for using equity–
91
methodOther
78
55
Total non-operating expenses
429
793
Ordinary income
3,913
4,481
Extraordinary income
Gain on sales of non-current assets
110
Total extraordinary income
110
Extraordinary losses
Loss on retirement of non-current assets
203
87
Provision of allowance for doubtful accounts
5676
Directors' retirement benefits
110–
Special retirement expenses
–
41
Other
033
Total extraordinary losses
370
239
Profit before income taxes
3,554
4,242
Income taxes - current
1,823
2,100
Income taxes - deferred(316)(376)
Total income taxes
1,506
1,724
Profit2,047
2,517
Loss attributable to non-controlling interests
(142)
(231)
Profit attributable to owners of parent
2,190
2,749

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

8

Nine months ended
November 30, 2016
2,047

(Millions of yen)
Nine months ended
November 30, 2017
2,517

329

(177)

–16329
2,376

(161)
2,356

2,485

2,601

(108)

(244)