Revised on May 30, 2017

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 Year Ended February 28, 2017
(Based on Japanese GAAP)
April 13, 2017
Company name:

IDOM Inc.

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

URL

http://221616.com

President
General Manager, Finance IR Division

Yusuke Hatori
Masayuki Matsumoto

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

May 30, 2017
May 31, 2017

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

May 31, 2017
Yes

Holding of financial results meeting:

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 year ended February 28, 2017 (from March 1, 2016 to February 28, 2017)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended February 28, 2017
251,51619.7
4,498(40.4)
4,160(39.1)
2,247(45.3)
Year ended February 29, 2016
210,085
34.9
7,542
41.6
6,835
27.9
4,111
25.1

Earnings per share

Profit attributable toOrdinary
owners ofincome/total assets
parent/equity
Yen
%
%
22.16
5.9
4.0
–
11.5
9.0

Diluted earnings per
share

Yen
22.17
40.55

Year ended February 28, 2017
Year ended February 29, 2016

Operatingincome/net sales
%
1.8
3.6

(2) Consolidated financial position
Total assets
As of February 28, 2017
As of February 29, 2016

Net assets

Equity ratio

Millions of yen
114,047
94,211Millions of yen
39, 581
38,245

Cash flows fromoperating activities
Millions of yen(4,632)
4,121

Cash flows frominvesting activities
Millions of yen(8,262)(17,686)

Net assets per share
%
33.9
39.4

Yen
381.05365.98(3) Consolidated cash flows

Year ended February 28, 2017
Year ended February 29, 2016

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
18,092
14,337
17,8589,122

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended February 29, 2016
Year ended February 28, 2017
Year ending February 28, 2018
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

7.50
6.00

–
–

5.00
6.00

12.50
12.00

1,267
1,216

30.8
54.1

3.5
3.2

–

3.50

–

3.50

7.00

1

25.4

3. Forecast of consolidated financial results for the year ending February 28, 2018 (from March 1, 2017 to February 28, 2018)

Net sales
Millions of yen
Six months ending
August 31, 2017
Full year

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

127,200

2.4

2,100

(3.3)

1,750

(13.4)

1,000

(9.3)

9.86

259,500

3.2

5,500

22.3

4,900

17.8

2,800

24.6

27.61

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2017

106,888,000 shares As of February 29, 2016

106,888,000 shares

Number of treasury shares at the end of the period
As of February 28, 2017

5,480,350 shares As of February 29, 2016

5,480,300 shares

101,407,667 shares Year ended February 29, 2016

101,407,733 shares

Average number of shares during the period
Year ended February 28, 20172

1. Analysis of Operating Results and Financial Position
1. Operating Results(1) Analysis of consolidated operating results
During the consolidated accounting period from March 1, 2016 to February 28, 2017 (FY2017) , annual retail car sales from all
directly managed stores totaled 95,333 cars, up 34.8% year on year. This was attributable to an increase in the number of display
sale stores and in the number of cars offered per store. On the other hand, amid a prolonged slump in the new car market, we
increased advertising and PR expenses to increase customer traffic in response to a decline in the number of cars purchased by
Gulliver stores. The increase in advertising costs contributed, resulting in 186,175 cars purchased by all directly managed stores,
an increase of 2.9% year on year. However, cost performance relative to customer traffic decreased.
SG&A expenses increased due to the abovementioned increase in advertising and PR expenses, increased personnel expenses
related to an increase in personnel hiring, an increase in store management expenses incidental to the increase in the number ofdisplay sale stores, and expenses related to the introduction of new services.
The new car market in Western Australia underperformed the previous year and segment performance for the Australia businessresulted in an operating loss.
As a result of the above, consolidated business results for the FY2017 were net sales of 251,516 million yen (up 19.7% YoY),
operating income of 4,498 million yen (down 40.4% YoY), ordinary income of 4,160 million yen (down 39.1% YoY), and profit
attributable to owners of parent of 2,247 million yen (down 45.3% YoY).
Segment-specific earnings are as indicated below.
I. Domestic business
Domestic business resulted in net sales of 209,316 million yen (up 10.4% YoY) and segment income (operating income) of 5,360
million yen (down 27.7% YoY). While revenues increased thanks to an increase in cars sold, income declined as the increase inrevenues was not enough to cover the increase in SG&A expenses due to the sluggish market for new car sales.
II. Australia business
The Australia business recorded net sales of 40,596 million yen and segment losses (operating losses) of 462 million yen. The new
car market in Western Australia underperformed the previous year. Furthermore, the deemed acquisition date for subsidiaries
operating our Australian business was September 30, 2015, which is after the actual date of acquisition. As we treat companies
acquired on October 1, which fell during the previous cumulative consolidated 3rd quarter, as being within the scope of
consolidation, a year-on-year comparison is not indicated.

Outlook for the fiscal year ending February 28, 2018 (FY2018)
In light of firm retail car sales at display sale stores, we will continue to open new display sale stores. New store openings in
FY2017 and 2018 are expected to contribute to increased retail car sales at all directly managed stores.
Based on the above, our full-year forecast is as follows:
net sales of 259,500 million yen (up 3.2% YoY), operating income of 5,500 million yen (up 22.3% YoY), ordinary income of 4,900
million yen (up 17.8% YoY), and net income of 2,800 million yen (up 24.6% YoY).
(2) Analysis of financial position[Assets, liabilities and net assets]
Assets
As of the end of FY2017, total assets were 114,047 million yen (up 21.1% compared to end of FY2016).
Current assets were 63,765 million yen (up 29.9% compared to end of FY2016) on increased cash and deposits (up 5,188 million
yen compared to end of FY2016) and increased merchandise (up 9,484 million yen compared to end of FY2016).
Non-current assets were 50,281 million yen (up 11.4% compared to end of FY2016) on increased buildings and structures (up2,196 million yen compared to end of FY2016) as a result of new openings of directly managed stores, and increased software (up1,260 million yen compared to end of FY2016).

3

Liabilities
As of the end of FY2017, total liabilities were 74,466 million yen (up 33.1% compared to end of FY2016).
Current liabilities were 29,483 million yen (up 3.1% compared to end of FY2016) on increased short-term loans (up 1,363 million
yen compared to end of FY2016) and an increase in advances received (up 1,202 million yen compared to end of FY2016).
Non-current liabilities were 44,983 million yen (up 64.4% compared to end of FY2016) on increased long-term loans (up 17,923
million yen compared to end of FY2016).
Net assets
As of the end of FY2017, total net assets were 39,581 million yen (up 3.5% compared to end of FY2016) due to an increase inretained earnings (up 951 million yen compared to end of FY2016), among other factors.
[Cash flow position]
Cash and cash equivalents (hereinafter, “cash”) for the end of FY2017 were 14,337 million yen, an increase of 5,214 million yen(up 57.2%) compared to the end of FY2016.
The status of cash flows for FY2017 and respective relevant cash flows are as follows.

(Cash flows from operating activities)
Net cash used in operating activities was 4,632 million yen.
Main components were income before income taxes and minority interests of 3,692 million yen, expenditure of 8,916 million yen
for increase in inventories, and expenditures of 2,299million yen related to decrease in notes and accounts payable - trade, among
other factors.

(Cash flows from investing activities)
Net cash used in investing activities was 8,262 million yen.
Cash was mainly used for the purchase of property, plant and equipment due to the opening of directly managed stores as well as
payments of construction assistance fund receivables, among other factors.

(Cash flows from financing activities)
Net cash provided by financing activities was 18,092 million yen.
This was mainly attributable to proceeds from long-term loans payable of 18,000 million yen and cash dividends paid of 1,115
million yen.
(Reference) Trends in shareholders’ equity and cash flow indicators are as follows:

Equity ratio (%)
Shareholders’ equity (mark-to-market) ratio (%)
Debt redemption years
Interest coverage ratio

FY 2013
55.3
73.3
2.9
31.2

FY 2014
62.2
150.4
0.4
157.7

FY 2015
60.6
166.1
95.0
1.3

FY 2016

FY 2017

39.4
122.8
6.1
19.4

Notes:
1. Breakdown of each indicator
Equity ratio = shareholders’ equity/total assets
Shareholders’ equity (mark-to-market) ratio = Market capitalization/Total assets
Debt redemption years = Interest bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest payments
2. Each index is calculated from consolidated figures.
3. Market capitalization is calculated using the following formula: closing share price at period-end x number of shares issued (excluding treasury stock)
4. Debt redemption years and interest coverage ratio for FY 2017 are not shown in the above table due to a negative figure for operating cash flow.

4

33.9
65.1
-

(3) Basic policy concerning distribution of profit and dividends for FY2017 and FY2018
Basic dividend policy and targets
I. Dividend basic policy and goals
We apply an earnings performance-linked dividend policy through which we make decisions on dividend payouts based on
consolidated performance. While there is no change in the ongoing policy, as of the end of FY2017, we did conduct a partial
reevaluation of our dividend judgment method.
In the past, we applied a basic policy of “current consolidated net income x 30%” to calculate the total dividend amount and thendetermined the per-share dividend amount for that term. However, from the end of FY2017, we will calculate the total dividend
amount based on “previous consolidated net income x 30%” and then determine the current term per-share dividend amount.
The former method of linking the dividend amount to current consolidated net income resulted in the possibility of a need to makerepeated changes to the initially announced dividend forecasts based on actual earnings from the current term. However, the new
dividend calculation method determines the dividend amount for the current term based on actual performance for the previous
term, meaning that the initially announced dividend forecast will not require future revisions after the initial release.
II. Dividends for FY2017
In accordance with the above, per-share dividends for FY2017 will be 12 yen for the full year (interim dividend of 6 yen and a
year-end dividend of 6 yen).
III. Dididends for FY2018
The per-share dividend (forecast) for the upcoming term will be calculated based on the amount of 2,247 million yen in profit
attributable to owners of parent, resulting in an annual dividend of 7 yen (interim and year-end dividends of 3.5 yen each).

5

2.

Business policy

Disclosure has been omitted as there are no significant changes from the content disclosed in the “Summary of Consolidated
Financial Results for the Year Ended February 28, 2015 [Based on Japanese GAAP]” (released April 13, 2015).
The abovementioned earnings summary is available from the following URL:
(Our website)
http://221616.com/idom/en/ir

3.

Basic Approach to Selection of Accounting Standards

Our Group evaluated adopting IFRS beginning with the settlement of accounts for FY2017, in order to enhance international
comparability of its financial information on capital markets but decided to prolong the adoption of these standards after giving
due consideration to domestic and international conditions. Furthermore, we have not yet determined a period for the adoption ofthese standards.

6

Consolidated financial statements
Consolidated balance sheets
As of February 29, 2016

(Millions of yen)
As of February 28, 2017

9,149
5,192
31,848
778
2,159
(54)
49,074

14,337
4,655
41,333
785
2,717
(64)
63,76526,000(8,564)
17,435
435
(180)
255
3,882
(2,874)
1,007
218
826
19,74329,766(10,134)
19,632
312
(100)
212
4,097
(3,088)
1,009
218
961
22,033

1,941
9,597
3,974
15,513

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

13
45
395
4,565
4,304
274
(209)
489
9,879
45,136
94,211

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

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

7

As of February 29, 2016

(Millions of yen)
As of February 28, 201714,102
2,045
79
3,064
1,778
3,026
475
459
1,076
113
2,378
28,60012,317
3,408
–
3,885
679
4,228
383
651
1,149
175
2,602
29,48322,851
651
540
1,653
1,086
388
194
27,36555,96540,774
529
188
1,866
1,127
425
70
44,98374,466

4,157
4,032
32,869(3,947)
37,111

4,157
4,032
33,821(3,947)38,0631
1–
1,131
38,245
94,211

578
578
5
934
39,581
114,047

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' 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
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

8Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
Fiscal year ended
February 29, 2016
February 28, 2017
Net sales
210,085
251,516
Cost of sales
158,474
190,383
Gross profit
51,61061,133
Selling, general and administrative expenses
44,06756,634
Operating income
7,542
4,498
Non-operating income
Interest income
40
39
Reimbursement claims
130
Foreign exchange gains–
174
Insurance premiums refunded cancellation
11
–
Other
67
87
Total non-operating income
120332
Non-operating expenses
Interest expenses
212
473
Provision of allowance for doubtful accounts
10Foreign exchange losses
567–
Share of loss of entities accounted for using equity–
141
methodOther
46
55
Total non-operating expenses
827
670
Ordinary income
6,835
4,160
Extraordinary income
Gain on sales of property, plant and equipment
015Gain on liquidation of subsidiaries
3
–
Other
0
–
Total extraordinary income
415
Extraordinary losses
Loss on retirement of non-current assets
67
215
Impairment loss–
38
Loss on valuation of shares of subsidiaries
31
4
Provision of allowance for doubtful accounts
129113
Directors' retirement benefits
–
110
Other
0
0
Total extraordinary losses
229
483
Profit before income taxes
6,610
3,692
Income taxes - current
2,441
1,829
Income taxes - deferred27(130)
Total income taxes
2,469
1,699
Profit4,140
1,993
Profit (loss) attributable to non-controlling interests
28(254)
Profit attributable to owners of parent
4,111
2,247

9

Consolidated statements of comprehensive income

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 ofparentComprehensive income attributable tonon-controlling interests

10

Fiscal year ended
February 29, 2016
4,140

(Millions of yen)
Fiscal year ended
February 28, 2017
1,993

(177)

637

–

(18)

(177)
3,963

618
2,611

4,005

2,808

(42)

(197)

Consolidated statements of changes in equity
Fiscal year ended February 29, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

4,157

Retained earnings

4,032

Total shareholders'equityTreasury shares

30,278(3,947)34,521

Changes of items during period
Dividends of surplus(1,521)(1,521)

Profit attributable to owners ofparent

4,111

4,111

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

–

2,590

(0)

2,590

4,157

4,032

32,869(3,947)

37,111

Accumulated other comprehensive income
Total accumulated
Foreign currency
other comprehensive
translation adjustment
incomeBalance at beginning of current period

108

108

Non-controllinginterests

Total net assets–

34,629Changes of items during period
Dividends of surplus(1,521)

Profit attributable to owners ofparent4,111

Purchase of treasury shares(0)

Net changes of items other thanshareholders' equity

(106)

(106)

1,131

Total changes of items during period

(106)

(106)

1,131

3,615

1

1

1,131

38,245

Balance at end of current period

11

1,024

Fiscal year ended February 28, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

4,157

Retained earnings

4,032

Total shareholders'equityTreasury shares

32,869(3,947)

37,111

Changes of items during period
Change of scope of equity method

(180)

(180)

Dividends of surplus(1,115)(1,115)

Profit attributable to owners ofparent

2,247

2,247

Purchase of treasury shares

(0)

(0)

Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

–

–

952

(0)

952

4,157

4,032

33,821(3,947)38,063

Accumulated other comprehensive income
Total accumulated
Foreign currency
other comprehensive
translation adjustment
incomeBalance at beginning of current period

11

Subscription rights toshares–Non-controllinginterests

1,131

Total net assets

38,245

Changes of items during period
Change of scope of equity method(180)

Dividends of surplus(1,115)

Profit attributable to owners ofparent2,247

Purchase of treasury shares(0)

Net changes of items other thanshareholders' equity

577

577

5

(197)

Total changes of items during period

577

577

5

(197)

1,337

Balance at end of current period

578

578

5

934

39,58112384

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
February 28, 2017

Fiscal year ended
February 29, 2016
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for merchandise
warranties
Increase (decrease) in provision for directors'
retirement benefits
Interest and dividend income
Share of (profit) loss of entities accounted for using
equity method
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of property, plant and equipment
Loss on retirement of non-current assets
Impairment loss
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accrued consumption taxes
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
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
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities

13

6,610
2,449
274
23

3,692
2,964
500
191

126

125

(200)

73

33

(351)

(40)

(39)

–

141

212
–
–
67
–

473
(3)
(14)
215
38

975

1,695

(7,536)(8,916)

1,236(2,299)

431
556
5,219
40
(212)
(926)
4,121

(229)
545
(1,197)39(456)(3,018)(4,632)(5,199)(1,162)
(10)
–
(356)
69
(763)

(4,521)(2,084)
(47)
(24)
(3)
5
(619)

106

121

(1,105)(1,271)

311

376

(5)
12
(5)

–
27
(240)

(9,579)–1(17,686)22(8,262)

(Millions of yen)
Fiscal year ended
February 28, 2017

Fiscal year ended
February 29, 2016
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
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Proceeds from issuance of subscription rights tosharesNet 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

14

1,895
22,680(4,696)(495)(0)(1,525)

1,363
18,000(161)–(0)(1,115)–

5

17,85818,092

(34)

18

4,259
4,863
9,122

5,214
9,122
14,337

Non-consolidated financial statements
Non-consolidated balance sheets
As of February 29, 2016

(Millions of yen)
As of February 28, 2017

5,104
2,975
22,163
164
715
808
577
1,776
(175)
34,11010,376
3,665
30,349
101
898
814
443
1,592
(184)
48,057

14,383
2,431
0
815
218
826
18,675

16,060
3,053
10
780
218
961
21,085

1
0
1,937
14
1,954

–
0
3,199
14
3,214

0
12,29119

012,496
14

2,969

4,548

77

80

301
4,181
4,304
278
106
(222)
24,30944,93879,048

338
4,655
5,214
368
110
(640)
27,18651,48699,544

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Prepaid expenses
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Long-term loans receivable from subsidiaries
and associates
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease 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

15

As of February 29, 2016

(Millions of yen)
As of February 28, 2017

4,558
2,000
1,930
1,680
489
1,038
2,846
296
455
1,076
582
78
113
–
17,146

3,312
3,000
3,056
558
287
1,276
4,165
304
639
1,149
438
88
175
1
18,456

22,680
651
540
1,640
25,51142,657

40,680
529
188
1,850
43,24861,705

4,157

4,157

4,032
4,032

4,032
4,032

39

39

32,10832,148(3,947)36,390–36,39079,04833,551
33,591(3,947)
37,833
5
37,83999,544

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Accrued expenses
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Accounts payable - facilities
Unearned revenue
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
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Subscription rights to shares
Total net assets
Total liabilities and net assets

16Non-consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Salaries and allowances
Provision for bonuses
Depreciation
Rents
Provision for directors' retirement benefits
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Reimbursement claims
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of shares of subsidiaries
Provision of allowance for doubtful accounts
Directors' retirement benefits
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit17

Fiscal year ended
February 29, 2016
179,367
134,077
45,289(Millions of yen)
Fiscal year ended
February 28, 2017
198,434
147,268
51,166

7,068
9,673
423
2,129
6,354
33
40
12,72538,4486,841

9,064
11,471
611
2,514
7,532
19
18
15,40046,632
4,534

137
1
–
38
177

47
30
175
48
300

51
–
537
45
634
6,384

132
35
–
17
185
4,649

–
0
0

11
–
11

64
–
31
129
–
3
229
6,155
2,199
6
2,205
3,949

209
38
34
408
110
–
801
3,858
1,395
(95)
1,300
2,558

Non-consolidated statements of changes in equity
Fiscal year ended February 29, 2016
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Total
retainedearnings

Treasuryshares

29,68029,719(3,947)

Dividends of surplus(1,521)

Profit3,949

Balance at beginning ofcurrent period

Capital
stock

Legal
capitalsurplusTotal
capitalsurplusLegalretainedearnings

4,157

4,032

4,032

39

Other
retainedearnings
Retainedearnings
brought
forwardTotal
shareholders'

Total net
assetsequity33,96233,962(1,521)(1,521)(1,521)

3,949

3,949

3,949

(0)

(0)

(0)

Changes of items during
periodPurchase of treasury
sharesTotal changes of items
during period
Balance at end of current
period

–

–

–

–

2,428

2,428

(0)

2,428

2,428

4,157

4,032

4,032

39

32,10832,148(3,947)36,39036,390Fiscal year ended February 28, 2017
(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Legal
capitalsurplusTotal
capitalsurplusLegalretainedearnings

4,157

4,032

4,032

39

Subscription

Totalrights tosharesTotal net
assetsTotal
retainedearnings

Treasuryshares32,10832,148(3,947)

Dividends of surplus(1,115)(1,115)(1,115)(1,115)

Profit

2,558

2,558

2,558

2,558

(0)

(0)

Balance at beginning ofcurrent period

Capital
stock

Other
retainedearnings
Retainedearnings
brought
forwardshareholders'equity36,390–36,390Changes of items during
periodPurchase of treasury
shares(0)

Net changes of items
other than shareholders'equityTotal changes of items
during period
Balance at end of current
period

5

5

–

–

–

–

1,442

1,442

(0)

1,442

5

1,448

4,157

4,032

4,032

39

33,551

33,591(3,947)

37,833

5

37,83918