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, 2019
(Based on Japanese GAAP)
October 11, 2019
Company name:
IDOM Inc.
Stock exchange listing: Tokyo
Stock code:7599
URL https://221616.com
Representative:
President
Inquiries:
General Manager, Finance & IR Division
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

Yusuke Hatori
Masayuki Matsumoto
October 15, 2019
November 8, 2019

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, 2019 (from March 1, 2019 to August 31, 2019)(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, 2019179,276
24.6
4,624 937.3
3,634
–
2,124
–
Six months ended August 31, 2018
143,9376.3
445 (82.4)(106)–(598)–Earnings per share

Diluted earnings per share

Yen
20.95
(5.90)

Six months ended August 31, 2019
Six months ended August 31, 2018

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
174,017
173,807

As of August 31, 2019
As of February 28, 2019

Equity ratio

Millions of yen
40,99340,312

Net assets per share
%
23.3
22.9

Yen
399.59391.702. Cash dividends
1st quarter-end

Annual dividends per share
2nd quarter-end
3rd quarter-end
Fiscal year-end

Yen––

Year ended February 28, 2019Year ending February 29, 2020

Yen
5.50
0.60

Year ending February 29, 2020 (Forecast)

Total

Yen–

Yen
5.50

Yen
11.00

–

0.60

1.20

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)

Net sales

Full year

Millions of yen
341,200

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
10.3
6,450
89.7
4,700 126.8
2,200 477.4
21.69

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2019(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:
Restatement of prior period financial statements:

No
No
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, 2019106,888,000 shares As of February 28, 2019106,888,000 shares

Number of treasury shares at the end of the period
As of August 31, 2019

5,480,571 shares As of February 28, 2019

5,480,531 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2019

101,407,437 shares Six months ended August 31, 2018

2101,407,530 shares

Analysis of Operating Results and Financial Position for the Second Quarter(1) Analysis of operating results
In the first six months of the fiscal year under review (March 1, 2019 to August 31, 2019), retail car sales from all directly
managed stores in Japan totaled 67,831 (up 11.0% from the same term last year). In the previous term, retail car sales per store andgross profit per unit fell due to changes in the price setting of used car sales and the stores’ sales strategy. However, improvement
measures that have been in place from the previous term continuously succeeded, and both retail car sales per store and grossprofit per unit recovered. In addition, a certain rush in demand due to the implementation of a higher consumption tax contributed
to the recovery of retail car sales per store.
SG&A expenses increased due to up-front store management expenses resulting from new store openings.
Associated with the conclusion of the syndicated loan agreement specified in “Conclusion of a Syndicated Loan Agreement”
disclosed on March 18, 2019, we paid an arrangement fee to our arranger financial institution and the expenses were accounted forwithin non-operating expenses/interest expenses in a lump.
As a result of the above, the consolidated business results for the first six months were net sales of 179,276 million yen (up24.6% from the same term last year), operating profit of 4,624 million yen (up 937.3%), ordinary profit of 3,634 million yen(ordinary loss of 106 million yen in the same term last year), and profit attributable to owners of parent of 2,124 million yen (a lossof 598 million yen was experienced in the same term last year).
Regional segment-specific earnings are as indicated below:
I. Japan
The Japan segment recorded net sales of 138,218 million yen (up 18.6% from the same term last year) and segment income(operating profit) of 5,052 million yen (up 839.0%). Both retail car sales per directly managed store and gross profit per unit
improved.
II. Australia
The Australia segment recorded net sales of 39,815 million yen (up 50.7% from the same term last year) and segment loss
(operating loss) of 195 million yen (the same term last year recorded segment income (operating profit) of 52 million yen). The
new car dealer group acquired in October 2018 became our subsidiary in the previous consolidated fiscal year (its financial results
were consolidated for the period from October 1, 2018 to February 28, 2019). As a result, it made a substantial contribution to anincrease in net sales in the first six months under review. The business performance of the subsidiary in Western Australia
improved due to an increase in retail car sales in the second quarter.
(2) Analysis of financial position
Assets
As of the end of scond quarter ended August 31, 2019, total assets were 174,017 million yen (up 0.1% compared to the end of
the previous fiscal year).
Current assets were 114,303 million yen (up 1.3% compared to the end of the previous fiscal year) on increased cash anddeposits (up 7,598 million yen).
Non-current assets were 59,713 million yen (down 2.0% compared to the end of the previous fiscal year) on decreased goodwill(down 1,294 million yen).
Liabilities
As of the end of second quarter ended August 31, 2019, total liabilities were 133,024 million yen (down 0.4% compared to theend of the previous fiscal year).
Current liabilities were 44,074 million yen (down 27.3% compared to the end of the previous fiscal year) due to a decrease in
the current portion of long-term loans payable (down 12,000 million yen).
Non-current liabilities were 88,949 million yen (up 22.1% compared to the end of the previous fiscal year) on increased
long-term loans payable (up 15,963 million yen).
Net assets
As of the end of the second quarter, total net assets were 40,993 million yen (up 1.7% compared to the end of the previous fiscalyear) due to an increase in retained earnings (up 1,567 million yen).

3

(3) Consolidated earnings forecast and other forward-looking statements
There are no changes to our consolidated earnings forecasts for FY2020 from the figures released on October 4, 2019 in ourpress release entitled “Revision of Earnings Forecast.”

4

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2019

(Millions of yen)
As of August 31, 2019

23,0496,774
74,0909,043(93)
112,865

30,6486,531
72,836
4,425(138)
114,30336,130(13,141)
22,988
167
(29)
137
4,333
(3,481)
852
218
541
24,73837,143(13,568)
23,574
153
(19)
133
4,242
(3,456)785
218
338
25,0502,79711,664
5,348
19,811

2,744
10,370
4,873
17,988

191
2,261
38
6,083
5,753
1,438
741
(116)
16,39260,942
173,807

180
2,260
336
6,016
5,568
1,727700(116)
16,67459,713174,017

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
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, 2019

(Millions of yen)
As of August 31, 2019

20,026
9,031
12,0003,809
312
11,177
249
820
562
507
2,144
60,642

18,821
930
–
3,876
1,798
11,063
220
997
633
532
5,199
44,07468,023
432
2,279
1,363
561
191
72,852
133,494

83,986
508
2,451
1,392
387
223
88,949133,024

4,157
4,032
35,842(3,947)40,084

4,157
4,032
37,409(3,947)41,651

(363)
(363)
3
588
40,312
173,807(1,129)(1,129)3468
40,993174,017

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
Asset retirement obligations
Deferred tax liabilities
Other provision
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
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, 2018
August 31, 2019
Net sales
143,937
179,276
Cost of sales
113,771
142,478
Gross profit
30,16536,797
Selling, general and administrative expenses
29,71932,173Operating profit
445
4,624Non-operating income
Interest income
2924Interest on refund
018
Other
147
Total non-operating income
3189
Non-operating expenses
Interest expenses
342676
Foreign exchange losses
126
313
Share of loss of entities accounted for using equity
103
86
methodOther
11
1
Total non-operating expenses
584
1,079
Ordinary profit (loss)
(106)
3,634
Extraordinary income
Subsidy income
2222
Other–
1
Total extraordinary income
22
23
Extraordinary losses
Loss on retirement of non-current assets
155
224
Settlement package–140
Other
40
1
Total extraordinary losses
196366
Profit (loss) before income taxes
(281)
3,292
Income taxes - current
247
1,559
Income taxes - deferred
93(368)
Total income taxes
340
1,190
Profit (loss)
(621)
2,102
Loss attributable to non-controlling interests
(23)
(22)
Profit (loss) attributable to owners of parent
(598)
2,124

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
Deferred gains or losses on hedges
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

8

Six months ended
August 31, 2018
(621)

(Millions of yen)Six months ended
August 31, 2019
2,102(334)(1,069)24

86(34)(345)(967)–(983)
1,118(918)

1,238(48)(120)

Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2019

Six months ended
August 31, 2018
Cash flows from operating activities
Profit (loss) before income taxesDepreciation
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)
Loss on retirement of non-current assets
Settlement package
Decrease (increase) in notes and accounts receivable- trade
Decrease (increase) in inventories
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in accounts receivable - otherIncrease (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other
Increase (decrease) in deposits received
Increase (decrease) in accrued expenses
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
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
Purchase of investment securities
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments of construction assistance fund receivables
Collection of construction assistance fundreceivables
Purchase of shares of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities

9(281)
1,458
252

3,292
1,518
325

(360)

46

22(319)
(29)

176
71
(24)

103

86

342–
155–

676
361
224
140

(162)

22(12,361)

(113)

(80)

1,741

(682)
(1,913)

3,040
1,358

700

68(901)
(133)
(452)
981
(13,662)29(341)(1,733)(15,707)

63
820
863
410
15,16923(643)180
14,731–(2,060)
(269)
(12)
(33)
(12)
31(357)76(1,433)
(598)
(121)
–
(320)
–
(56)

83

123

(491)

(53)

276

255

(111)
(11)
(2,968)–0(2,129)(Millions of yen)Six months ended
August 31, 2019

Six months ended
August 31, 2018
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
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

2,862
10,000–(355)–
12,507(8,100)16,450(12,517)(553)
0(4,722)

(28)

(201)

(6,197)22,763
16,566

7,677
22,97030,648