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 Three Months Ended May 31, 2020
(Based on Japanese GAAP)
July 14, 2020
Company name:

IDOM Inc.

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

URL

https://221616.com

President
General Manager, Finance & IR Division

Yusuke Hatori
Masayuki Matsumoto

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

July 15, 2020–

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

03-5208-5503(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2020 (from March 1, 2020 to May 31, 2020)(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%
Three months ended May 31, 2020
83,724(7.2)(153)–(552)–(914)–Three months ended May 31, 2019
90,20626.3
1,510 298.6
959 826.0
447–
Earnings per share

Diluted earnings per share

Yen(9.06)
4.41

Three months ended May 31, 2020Three months ended May 31, 2019

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
180,936
183,783

As of May 31, 2020
As of February 29, 2020

Equity ratio

Millions of yen
41,12642,586

Net assets per share%
22.5
22.9

Yen
404.89415.42

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
0.60

Yen–

Yen
0.60

Yen
1.20

5.30

–

5.30

10.60

Year ended February 29, 2020
Year ending February 28, 2021
Year ending February 28, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2021 (from March 1, 2020 to February 28, 2021)

Net sales
Millions of yen
Six months ending
August 31, 2020
Full yearPercentages 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

156,000(13.0)

1,100(76.2)

250(93.1)

100(95.3)

0.99

338,000(6.5)

5,800(36.2)

4,100(40.3)

2,700(23.9)

26.63

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2020(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:

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 May 31, 2020

106,888,000 shares As of February 29, 2020

106,888,000 shares

Number of treasury shares at the end of the period
As of May 31, 2020

6,480,571 shares As of February 29, 2020

5,480,571 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2020

100,896,559 shares Three months ended May 31, 20192

101,407,445 shares１．Analysis of Operating Results and Financial Position for the First Quarter(1) Analysis of operating results
In the first quarter of the fiscal year under review (March 1 to May 31, 2020), retail car sales from all directly managed stores in Japan increased
1.9% year on year, to total 34,769, even when the stay-at-home requests issued by the central and local governments due to the novel coronavirus(COVID-19) were effective.
Meanwhile, gross profit per car from retail sales decreased due to a temporary reduction of retail prices from April to mid-May. Gross profit per car
in wholesale also fell due to a rapid decline in the auction market prices in April and May. SG&A expenses decreased thanks to cost control such asa reduction in advertising expenses.
In response to the stay-at-home requests and the declaration of a state of emergency issued by the central and local governments due to the spreadof COVID-19, the Company reduced its business hours and temporarily closed stores in Japan and Australia. The fixed cost and expenses incurred
during the temporary suspension were posted as an extraordinary loss related to the infectious disease.
As social contribution activities related to COVID-19, the Company launched “Gulliver Car Support” (#SaveMoving), a project to lend theautomobiles owned by the Company free of charge for up to three months to a total of 10,000 health care providers and others using the network ofapproximately 500 stores across Japan.
As a result, consolidated business results for the first quarter of the fiscal year under review were net sales of 83,724 million yen (down 7.2% year
on year), operating loss of 153 million yen (as compared to operating income of 1,510 million yen in the same period of the previous fiscal year),ordinary loss of 552 million yen (as compared to ordinary income of 959 million yen in the same period of the previous fiscal year), and loss
attributable to owners of parent of 914 million yen (as compared to profit attributable to owners of parent of 447 million yen in the same period of
the previous fiscal year).

Regional segment-specific earnings are as indicated below:
I. Japan
The Japan segment resulted in net sales of 68,031 million yen (down 4.1% year on year) and segment loss (operating loss) of 136 million yen (ascompared to segment income of 1,827 million yen). The decrease in sales and profit was caused by a fall in the number of visitors to stores due tothe impact of COVID-19.
II. Australia
The Australia segment recorded net sales of 15,216 million yen (down 19.2% year on year) and segment income (operating income) of 172 million
yen (as compared to segment loss of (operating loss) of 171 million yen in the same period of the previous fiscal year). While sales dropped due toa fall in the number of visitors to stores due to the impact of COVID-19, a decrease in SG&A expenses resulted in profit growth.
(2) Analysis of financial position
Assets
As of the end of first quarter ended May 31, 2020, total assets amounted to 180,936 million yen (down 1.5% from the end of the previous fiscalyear).
Current assets totaled 126,183 million yen (down 1.5% from the end of the previous fiscal year) as a result of a decrease in merchandise (down15,189 million yen from the end of the previous fiscal year) and a fall in notes and accounts receivable - trade (down 2,662 million yen from the endof the previous fiscal year) despite an increase in cash and deposits (up 16,958 million yen from the end of the previous fiscal year). As a result of
the reduction of inventory purchases in preparation for a decline in the number of customers visiting stores due to the impact of COVID-19,
merchandise decreased and cash and deposits increased.
Non-current assets decreased 1.6% from the end of the previous fiscal year to 54,752 million yen due to such factors as a decrease of 379 million
yen in buildings and structures and a fall of 241 million yen in goodwill.
Liabilities
As of the end of first quarter ended May 31, 2020, total liabilities amounted to 139,809 million yen (down 1.0% from the end of the previous fiscalyear).
Current liabilities totaled 54,752 million yen (down 2.7% from the end of the previous fiscal year) as a result of a decrease in accounts payable trade (down 2,642 million yen from the end of the previous fiscal year) and a fall in advances received (down 2,917 million yen from the end of theprevious fiscal year) despite an increase in other (up 4,275 million yen from the end of the previous fiscal year).
Non-current liabilities stood at 85,056 million yen (up 0.2% from the end of the previous fiscal year) due primarily to a rise in long-term loans
payable (up 106 million yen).
Net assets
As of the end of first quarter ended May 31, 2020, total net assets were 41,126 million yen (down 3.4% compared to the end of the previousfiscal year) due to a decrease in retained earnings (down 975 million yen).
(3) Consolidated earnings forecast and other forward-looking statements
There are no changes made to the consolidated earnings forecasts for the fiscal year ending February 28, 2021, announced on April 14, 2020, in“Summary of Consolidated Financial Results for the Year Ended February 29, 2020 (Based on Japanese GAAP)” in view of the consolidated results
for the first quarter under review, which are in line with the forecasts.

3

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 29, 2020(Millions of yen)
As of May 31, 2020

37,295
6,715
79,1195,143(158)
128,115

54,254
4,052
63,9304,134(188)
126,183

37,000(14,742)
22,257256(21)
234
4,196(3,487)
708
218
97
23,51736,720(14,842)
21,877
148
(22)
126
4,186
(3,495)691
218
39
22,952

1,877
10,911
4,604
17,393

1,844
10,6704,504
17,019

152
119
13
5,938
5,142
2,811
625
(48)
14,75655,667
183,783

151
119
13
5,843
4,967
3,136
595
(47)
14,77954,752
180,936

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, netTools, 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
Leasehold 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

4As of February 29, 2020

(Millions of yen)
As of May 31, 2020

21,002935
11,079
4,034
1,624
9,773
274
823
662
544
5,544
56,29918,359927
11,040
4,228
1,810
6,856
220
122
675
690
9,820
54,752

79,824
432
2,633
1,386
426
193
84,897141,196

79,931
437
2,582
1,375
410
319
85,056
139,809

4,157
4,032
38,773(3,947)43,016

4,157
4,032
37,798(4,344)
41,643

(889)
(889)
3
456
42,586
183,783

(989)
(989)
3
469
41,126
180,936

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Advances received
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
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
Three months ended
May 31, 2019
May 31, 2020
Net sales
90,206
83,724
Cost of sales
72,52169,002Gross profit
17,685
14,722
Selling, general and administrative expenses
16,174
14,875
Operating profit (loss)
1,510(153)
Non-operating income
Interest income
1011
Interest on tax refund
12–
Other
19
17
Total non-operating income
4329
Non-operating expenses
Interest expenses
340
247
Foreign exchange losses
170
110
Share of loss of entities accounted for using equity
83
53
methodOther
016
Total non-operating expenses
594
428
Ordinary profit (loss)
959(552)
Extraordinary income
Subsidy income
22386
Other–
0
Total extraordinary income
22386
Extraordinary losses
Loss on retirement of non-current assets
184154Loss on store closings–72
Settlement package
60–
Loss on COVIT19–
678
Total extraordinary losses
244
905
Profit (loss) before income taxes
736(1,071)
Income taxes - current
774
178
Income taxes - deferred(436)(356)
Total income taxes
338
(177)
Profit (loss)
398
(893)
Profit (loss) attributable to non-controlling interests(48)
20
Profit (loss) attributable to owners of parent
447
(914)

6

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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

7

Three months ended
May 31, 2019
398

(Millions of yen)Three months ended
May 31, 2020
(893)

(697)

(89)

45

(18)

(651)
(253)

(107)
(1,001)(102)(1,015)(150)

13