Summary Report of Consolidated Financial Results
For the Six Months Ended December 31, 2016

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Don Quijote Holdings Co., Ltd.
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Kohji Oohara, President and CEO
Contact:
Mitsuo Takahashi, Senior Managing Director (Phone: +81-3-5725-7588)
URL:
http://www.donki-hd.co.jp(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the six months ended 31 December, 2016
(1) Results of Business Operations(Millions of yen, except per-share data)
OperatingOrdinary
Net Sales
Change (%)
Change (%)
Change (%)
IncomeIncomeSix Months Ended
417,694
8.6
26,3433.0
26,9284.1
December 31, 2016
Six Months Ended
384,445
12.3
25,571
9.2
25,873
7.6
December 31, 2015
(Note) Comprehensive income: 18,922 million yen [16.9%] (FY 2017.6 2Q), 16,185 million yen [△3.7%] (FY 2016.6 2Q)
ProfitAttributable toOwners of Parent
Six Months Ended
December 31, 2016
Six Months Ended
December 31, 2015

Change (%)

Net Income
Per Share(Yen)Net Income Per
Share-fully
diluted (Yen)

16,45915.6

104.09104.05

14,232

3.9

90.05

89.97

(2) Financial Position(Millions of yen, except per-share data)
Total Assets

Ratio of Shareholders’ Equity
to Total Assets (%)

Net assets

As of December 31,
628,931265,432
39.3
2016
June 30, 2016
560,568
244,547
41.3(Reference) Equity: 247,482 million yen (as of December 31, 2016), 231,528 million yen (as of June 30, 2016)
2. Dividends
Three Months Ended
September 30
Year Ended June 30,
2016
Year Ending June 30,
2017Year Ending June 30,
2017 (Forecast)

Six Months Ended
December 31

－

5.00

－

5.00

Yen
Nine Months
Ended March 31

Year Ended June30

Total－

17.00

22.00

－

18.00

23.00

(Note) Revision to the dividend forecast in the second quarter of fiscal 2017: None
3. Consolidated Business Forecast：For the year ending June 30, 2017 (From July 1, 2016 to June 30, 2017)(Millions of yen, except per-share data)
ProfitNet

ChangeOperating

ChangeSales(%)

Income(%)

Ordinary
IncomeChangeAttributable toChange(%)

Owners of(%)

ParentYear Ending
June 30, 2017
(Note)

820,000

8.0

45,0004.2

45,500

Revision to the business forecast in the second quarter of fiscal 2017: Yes

1

3.9

27,50010.3

Net Incomeper Share(Yen)
173.88

4. Others(1) Significant changes in the scope of consolidation: None
Newly consolidated: － Excluded:－(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: None
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: Yes② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury stock included)
December 31, 2016
158,156,560 shares
June 30, 2016
158,118,160 shares② Number of treasury stock
December 31, 2016
4,633 shares
June 30, 2016
4,633 shares③ Average number of outstanding shares during the period
December 31, 2016
158,129,763 shares
December 31, 2015
158,051,983 shares(5) Changes in accounting policies(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (AccountingStandards Board of Japan (ASBJ) Accounting Statement No. 26 of March 28, 2016; hereinafter called the“Implementation Guidance on Recoverability”) from the first quarter of the fiscal year under review and revised partof its accounting treatment for recoverability of deferred tax assets.
As for application of the Implementation Guidance on Recoverability, the Company followed the transitional
treatment stipulated in paragraph 49 (4) of the Implementation Guidance on Recoverability.
The differences between the amount of deferred tax assets and deferred tax liabilities at the beginning of the firstquarter of the current fiscal year in the case of applying the paragraph 49 (3) 1 to 3 of the Implementation Guidanceon Recoverability and the amount of deferred tax assets and deferred tax liabilities at the end of the previous fiscal
year were added to the retained earnings at the beginning of the first quarter of the current fiscal year.
As a result, deferred tax assets (investments and other assets) increased by ¥4,890 million, retained earnings
increased by ¥2,406 million and non-controlling interests increased by ¥2,484 million at the beginning of the firstquarter of the current fiscal year.
※Implementation Status of Financial Audit
This financial summary is not subject to quarterly review under the Financial Instrument and Exchange Act.
Quarterly review procedures for the consolidated financial statements are being conducted at the time of theannouncement of this financial summary.
※Explanation regarding the appropriate use of forecasts of business results
The financial forecasts of business results are based on judgments and estimates that have been made using
currently available information. By nature, such financial forecasts are subject to uncertainties and risks. Therefore,
actual results might be significantly different from the aforementioned forecasts for a variety of reasons, includingchanges in economic environments related to our business, market trends and exchange rates.

2Consolidated Quarterly Balance Sheets(Millions of yen)
As of December 31,

As of June 30,

2016

2016

AmountAmountAssetsCurrent assets
Cash and deposits¥58,021¥42,894

Notes and Accounts receivable-trade

11,002

7,720

Purchased receivables

8,135

6,606

Merchandise

122,677

117,400

Other

27,85021,423(25)(66)

227,660

195,977

110,677

108,114

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netTools, furniture and fixtures, net

16,383

16,616

Land

169,155

165,185

3,506

2,137

299,721292,052

Goodwill

6,439

6,852

Other

10,431

10,153

Total intangible assets

16,87017,005Investment securities

3,967

5,736

Lease and guarantee deposits

39,40735,645

Other43,112

15,950Allowance for doubtful accounts(1,806)(1,797)

Total investments and other assets

84,68055,534

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Total non-current assets

Total assets

3

401,271364,591¥628,931¥560,568

(Millions of yen)
As of December 31,

As of June 30,2016

2016

AmountAmountLiabilities
Current liabilities
Accounts payable-trade¥87,992¥70,194

Short-term loans payable

2,830

1,680

Current portion of long-term loans payable7,691

18,557

Current portion of bonds

20,116

12,686

Payables under fluidity lease receivables

7,098

7,147

Income taxes payable

8,507

5,573

Provision for point card certificates

1,525

1,327

Other

31,19330,831

Total current liabilities

166,952

147,995

Bonds payable

66,94876,471Long-term loans payable

87,82745,082Long-term payables under fluidity lease receivables

22,956

26,876

Asset retirement obligations

5,572

5,177

396

439

Non-current liabilities

Negative goodwill
Other

12,84813,981

Total non-current liabilities196,547

168,026

363,499

316,021

22,40722,382

Total liabilities

Net assets
Shareholders' equity
Capital stock
Capital surplus

25,25725,215Retained earnings

200,614

184,205

(14)

(14)

248,264

231,788290

12(1,072)

(272)

(782)

(260)

44

23

Non-controlling interests

17,906

12,996

Total net assets

265,432

244,547

628,931560,568

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive incomeSubscription rights to shares

Total liabilities and net assets

4Consolidated Quarterly Statements of Income

Net sales

Six months ended
December 31, 2016

(Millions of yen)Six months ended
December 31, 2015

AmountAmount¥417,694¥384,445

307,054281,504

110,640

102,941

84,297

77,37026,34325,571

Interest and dividend income

442

334

Gain on valuation of derivatives

539－Amortization of negative goodwill

4343

Penalty income

82

703

Other

1,053

623

Total non-operating income

2,159

1,703

Interest expenses

551

522

Bond issuance cost

151

81

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Non-operating expenses

Cost of claim's liquidation

270

314

Foreign exchange losses

466

220

Other

136

264

1,574

1,401

26,92825,873

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets

45

9Gain on sales of investment securities

215

－

Other

54

－

Total extraordinary income

314

9Loss on retirement of non-current assets

98

51

Loss on closing of stores

143

919

Other

67

1

Extraordinary losses

308

971Profit before income taxes

Total extraordinary losses

26,93424,911

Income taxes - Current

9,568

8,197

Income taxes - Deferred(2,085)

262

7,483

8,459

ProfitTotal income taxes

19,451

16,452

Profit attributable to non-controlling interests

2,992

2,220

¥16,459¥14,232

Profit attributable to owners of parent

5Consolidated Quarterly Statements of Comprehensive Income(Millions of yen)

ProfitSix months ended

Six months ended

December 31, 2016

December 31, 2015

AmountAmount¥19,451¥16,452292(218)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(821)

(49)

Total other comprehensive income

(529)

(267)

Comprehensive income¥18,922¥16,185

Comprehensive income attributable toComprehensive income attributable to owners of parent¥15,938¥13,976

2,984

2,209

Comprehensive income attributable to non-controllinginterests

6

Consolidated Quarterly Statements of Cash FlowsSix months ended
December 31, 2016
Amount(Millions of yen)Six months ended
December 31, 2015
AmountCash flows from operating activities:
Profit before income taxes
Depreciation
Amortization of negative goodwill¥26,934¥24,911

7,739

7,068

(43)

(43)

Increase (decrease) in provision

(211)

158

Interest and dividend income

(442)

(334)

Interest expenses

551

522

Gain on sales of investment securities

(215)

－

Increase in notes and accounts receivable - trade(4,971)(3,933)

Increase in inventories(5,532)(12,882)

Increase in notes and accounts payable - trade17,982

23,623

Other, net

4,141

3,278

Subtotal

45,93342,368314

242

Interest and dividend income received
Interest expenses paid

(559)

(469)

Income taxes paid(7,154)(10,160)

Income taxes refund

1,203

1,624

39,73733,605(18,314)(21,700)

Net cash provided by operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

1,288

53

Purchase of intangible assets

(441)

(274)

(1,738)(1,144)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits

183

66

Payment for store opening in progress(390)(1,530)

Proceeds from sales of investment securities

1,118－(22,536)(1,685)

(475)

(229)

(41,305)(26,443)

Net increase in short-term loans payable

1,249

538

Proceeds from long-term loans payable

44,023

24,100

Repayment of long-term loans payable(13,996)(3,793)

8,349

4,819

Redemption of bonds(10,593)(3,320)

Repayments of payables under fluidity lease receivables(4,228)(3,810)50

309(2,688)(2,369)

(583)

(567)

Payments of loans receivable
Other, net
Net cash used in investing activities
Cash flows from financing activities:

Proceeds from issuance of bonds

Proceeds from issuance of common shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Other, net
Net cash provided by financing activities
Effect of exchange rate change on cash and cash equivalents
7(11)

(5)

21,572

15,902

(491)

(206)

Net increase in cash and cash equivalents

19,51322,858Cash and cash equivalents at beginning of period

44,496

51,292103－－(32)49－¥64,161¥74,118

Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Increase in cash and equivalents resulting
from change of accounting period of consolidated subsidiaries
Cash and cash equivalents at end of period

Segment Information
For the six months ended December 31, 2016
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
Sub TotalOthers(Note 1)

Total

¥10,349¥414,065¥3,629¥417,694¥－¥417,694

9,780

10,051

4,951

15,002(15,002)－403,987

20,129424,116

8,580

432,696(15,002)417,694¥14,321¥8,442¥22,763¥3,485¥26,248¥95¥26,343

Retailbusiness

Rentbusiness¥403,716
271

Total
Segment income

Adjustment Consolidated(Note 2)
(Note 3)

Sales, Segment income
Sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes the services of real estate business, marketing business and financial service
business that are not included in other reporting segments.
2. The ¥ 95 million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Information is omitted since it is immaterial.
(Significant changes in goodwill)
Information is omitted since it is immaterial.
(Significant gain on negative goodwill)
Not applicable
For the six months ended December 31, 2015
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
Sub Total

Others(Note 1)

Total

¥9,737¥381,146¥3,299¥384,445¥－¥384,445

7

8,762

8,769

3,747

12,516(12,516)－Total371,416

18,499389,915

7,046

396,961(12,516)

384,445

Segment income¥15,393¥7,129¥22,522¥3,266¥25,788¥(217)¥25,571RetailbusinessRentbusiness¥371,409

Adjustment Consolidated(Note 2)(Note 3)

Sales, Segment income
Sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes the services of real estate business, marketing business and financial service
business that are not included in other reporting segments.
82. The ¥ (217) million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in goodwill)
Not applicable(Significant gain on negative goodwill)
Not applicable9