Summary Report of Consolidated Financial Results
For the Second Quarter Ended December 31, 2010

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Don Quijote Co., Ltd.
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Junji Narusawa, President and Representative Director
Contact:
Mitsuo Takahashi, Senior Managing Director (Phone: +81-3-5725-7588)
URL:
http://www.donki.com(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the second quarter of fiscal 2011 (From July 1, 2010 to
December 31, 2010)(1) Results of Business Operations(Millions of yen, except per-share data)
Operating
Ordinary
ChangeNet Sales
Change (%)
Change (%)
IncomeIncome(%)
Six Months Ended
255,4811.9
14,19327.9
14,031
29.5
December 31, 2010
Six Months Ended
250,698
2.7
11,101
33.8
10,833
69.7
December 31, 2009

Net Income
Six Months Ended
December 31, 2010
Six Months Ended
December 31, 2009

Change (%)

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

7,549

23.8

102.03

98.10

6,100

195.0

88.00

82.16

(2) Financial Position(Millions of yen, except per-share data)
Ratio of Shareholders’Equityto Total Assets (%)

Net assets
per Share (Yen)

Total Assets

Net assets

332,956

120,99235.9

1,553.24

302,029

106,760

34.9

1,460.81

As of December 31,
2010
Last Fiscal Year
2. Dividends

Three Months Ended
September 30
Year Ended June 30,
2010
Year Ending June 30,
2011Year Ending June 30,
2011 (Forecast)

Six Months Ended
December 31

－

10.00

－

10.00

Yen
Nine Months
Ended March 31

Year Ended June
30

Total

－

15.00

25.00

－

15.00

25.00

(Note) Revision to the dividend forecast in the second quarter of fiscal 2011: None
3. Consolidated Business Forecast： For the year ending June 30, 2011 (From July 1, 2010 to June 30, 2011)(Millions of yen, except per-share data)

Year Ending
June 30, 2011

Net Sales

Change(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

Net
IncomeChange(%)

Net Income
per Share(Yen)

500,000

2.5

24,50016.3

23,50011.3

12,50022.1

162.65(Notes) Revision to the business forecast in the second quarter of fiscal 2011: Yes

4. Others(1) Significant changes in subsidiaries (Changes in subsidiaries resulting in changes in the scope of consolidation): No(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: Yes① Calculation of provision for doubtful accounts
Credit loss ratio of the previous fiscal year end was used to calculate the provision for bad debts for the current
second quarter.
② Calculation of depreciation expenses for fixed assets
For fixed assets where depreciation is calculated by declining-balance method, the annual depreciation is
proportionately allocated to each quarter.
③ Computation method for income taxes, deferred tax assets and deferred tax liabilities
The recoverability of deferred tax assets was assessed based on the projections of future performance and tax
planning that were used in the prior fiscal year but also by taking into account the effects of significant changes ifsuch significant changes were recognized in the business environment or in the circumstances where temporary
differences occur during the period from the end of the prior fiscal year to December 31, 2010.
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: Yes② Other changes: None
(4) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury stock included)
December 31, 2010
76,851,680 shares
June 30, 2010
72,095,109 shares② Number of treasury stock
December 31, 2010
1,244 shares
473 shares
June 30, 2010
③ Average number of outstanding shares during the period
December 31, 2010
73,982,818 shares
December 31, 2009
69,322,868 shares※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 ofcurrently available information. By nature, such financial forecasts are subject to uncertainties and risks. Therefore,
the final results might be significantly different from the aforementioned forecasts due to changes in economic
environments related to our business, market trends and exchange rate, etc.

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

As of June 30,

2010

2010

AmountAmountAssetsCurrent assets
Cash and deposits¥50,698¥41,734

Notes and Accounts receivable-trade

5,326

4,045

Merchandise and finished goods

85,09274,452

Other

6,646

8,020

(59)

(53)

147,703

128,198

Buildings and structures, net

52,072

49,961Tools, furniture and fixtures, net

9,217

8,711

Land

70,71564,378

Allowance for doubtful accounts
Total current assets

Noncurrent assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets

2,027

684

134,031

123,734

4,951

2,721

Investments and other assets
Investment securities

4,951

6,297

Lease and guarantee deposits

33,45333,674Other

11,197

10,566

Allowance for doubtful accounts(3,330)(3,161)

Total investments and other assets

46,27147,376

Total noncurrent assets

185,253

173,831¥332,956¥302,029

Total assets

(Millions of yen)
As of December 31,

As of June 30,

2010

2010

AmountAmountLiabilities
Current liabilities
Accounts payable-trade¥55,043¥42,670

Short-term loans-payable

1,124

698

Current portion of long-term loans payable

11,15010,834Current portion of bonds

42,70741,507―

8,625

Income taxes payable

5,507

4,014

Derivatives liabilities

Current portion of convertible bonds

2,809

―

Provision for point card certificates

188

247

Other provision

126

72

Other

15,68813,338

Total current liabilities

134,342

122,005

35,84733,851350

350

24,884

20,379Derivatives liabilities

―

2,848

Provision for retirement benefits

58

84

Noncurrent liabilities
Bonds payable
Convertible bonds
Long-term loans payable

Provision for directors' retirement benefits

357

375

Negative goodwill

2,877

3,306

Asset retirement obligations

1,653

―

Other

11,596

12,071

Total noncurrent liabilities

77,62273,264211,964

195,269

Capital stock

19,38515,049

Capital surplus

22,187

17,856

Retained earnings

80,82074,503(2)(1)

122,390

107,407

(234)

(104)

Foreign currency translation adjustment(2,789)(1,986)

Total valuation and translation adjustments(3,023)(2,090)

0

0

1,625

1,443

120,992

106,760¥332,956¥302,029

Total liabilities
Net assets
Shareholders' equity

Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities

Subscription rights to shares
Minority interests

Total net assets
Total liabilities and net assets

Consolidated Statements of Income(Millions of yen)Six months ended

Six months ended

December 31, 2010

December 31, 2009

AmountAmountNet sales¥255,481¥250,698

Cost of sales

189,607

187,893

65,87462,80551,681

51,704

14,193

11,101

Interest and dividends income

289

266

Amortization of negative goodwill

429

429

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

Other
Total non-operating income

672

899

1,390

1,594

Non-operating expenses
Interest expenses

888

790

Loss on valuation of derivatives

110

748

Other

554

324

1,552

1,862

14,031

10,833Gain on sales of noncurrent assets

0442

Gain on redemption of convertible bonds―

221

Compensation income for expropriation

382

―

Other

230

133

Total extraordinary income

612

796

Loss on valuation of investment securities

218

724

Loss on closing of stores

161

185

Impairment loss

457―

Settlement package
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Other

58

342

682

―

423

302

1,999

1,553

12,644

10,076

5,358

4,057

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary losses

Total extraordinary losses
Income before income taxes and minority interests
Income taxes - Current
Income taxes - Deferred

(507)

(259)

Total income taxes

4,851

3,798

7,793

―

Income before minority interests
Minority interests in income
Net income

244

178

¥7,549¥6,100Consolidated Statements of Cash Flows(Millions of yen)

Net cash provided by (used in) operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of negative goodwill
decrease in provisionInterest and dividends income
Interest expenses
Loss on valuation of derivatives
Loss (Gain) on sale of noncurrent assets
Gain on redemption of convertible bonds
Loss on valuation of investment securities
Loss on adjustment for changes of accounting standard for asset
retirement obligations
Increase in notes and accounts receivable-trade
Increase in inventories
Increase in notes and accounts payable-trade
Other, net
Sub totalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Net cash provided by (used in) investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash used in investing activities
Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Net increase in commercial papers
Proceeds from issuance of bonds
Redemption of bonds
Redemption of convertible bonds
Cash dividends paid
Other, net
Net cash provided by financing activities

Six months ended

Six months ended

December 31, 2010

December 31, 2009

AmountAmount¥12,644
4,604¥10,076
4,334

457

－

(429)
(7)
(289)
888
110
3
－
218

(429)
(14)
(266)
790
748
(442)
(221)
724

682

－

(1,344)(10,737)
12,593
1,473
20,866204(878)(3,802)
16,390(603)(4,265)
16,192514
27,138194(779)(3,084)
23,469(22,601)
23,523(12,953)364(10,213)59(8,708)1,365(2,600)

－

(478)
827
－
927
(302)
(13,293)

(352)
893
(40)
6
(460)
(17,450)426
11,000(6,178)－9,000(5,804)(25)(1,081)
7¥7,345(6,138)19,400(5,433)
18,47919,900(4,848)(19,950)(899)
274¥20,785

(Millions of yen)Six months ended

Six months ended

December 31, 2010

December 31, 2009

AmountAmountEffect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents¥(365)
10,077¥(154)
26,650Cash and cash equivalents at beginning of period

38,91142,040

9

－

(215)

－

－

62

¥48,782¥68,752

Increase in cash and cash equivalents from newly consolidated
subsidiary
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Increase in cash and cash equivalents resulting from merger
between consolidated and unconsolidated subsidiaries
Cash and cash equivalents at end of period

Segment Information
For the second quarter ended December 31, 2010
1. Overview of Reporting Segments
The Company’s reporting segments are those for which financial information separate from that of other units
comprising the Group can be obtained. These reporting segments are the subject of regular reviews by the board of
directors for determining the allocation of management resources and assessment of business results.
The Group regards “Retail business” and “Rent business” as reporting segments from scope of business. The “Retailbusiness” presents stores such as "Don Quijote", "MEGA Don Quijote", "Nagasakiya", "Doit". The “Rent business”
operates a tenant invitation in the shopping malls and management.
2. Information concerning sales and income (loss) by reporting segment
For the second quarter ended December 31, 2010

(Millions of yen)

Reporting segment
RetailbusinessRentbusiness

Sub Total

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)¥245,586¥7,927¥253,513¥1,968¥255,481¥－¥255,481

－

1,292

1,292

490

1,782

(1,782)－

Total

245,586

9,219

254,805

2,458

257,263(1,782)

255,481

Segment income¥10,960¥2,746¥13,706¥395¥14,101¥92¥14,193

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, cellular phones sales
business that are not included in other reporting segments.
2. The segment adjusted income of ¥92 million is an intersegment elimination.
3. Segment income is adjusted with operating income.
3. Information concerning impairment of fixed assets or goodwill by reporting segment
In the “Retail business” segment, the Company appropriate impairment loss ¥390 million of fixed assets. Because it was
not able to anticipate the profit that it assumed at first by the membership system wholesale type retail business that
consolidated subsidiary WR Co., Ltd. presents.
In addition, the Company appropriate impairment loss ¥57 million of fixed assets because we were not able to anticipate
the profit that it assumed at first about the part store of the "retail business" segment.

(Additional Information)
Effective from the first quarter of the current fiscal year, the Company adopted the “Accounting Standard forDisclosures about Segments of an Enterprise and Related Information” (ASBJ Statement No. 17, March 27, 2009) and“Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Guidance No. 20, March 21, 2008).

For the second quarter ended December 31, 2009
a. Operating segment information
For the second quarter ended December 31, 2009
DiscountStorebusiness(Millions of yen)

GMS

Rent

Corporate

OthersTotal¥8,040¥1,041¥250,698¥－¥250,698

business businesseliminations

Consolidated

Sales, Operating income (loss)
Sales
Sales to third parties
Intersegment sales
Total
Operating income (loss)¥211,439 ¥30,178
194

3

1,205

441

1,843

(1,843)－211,633

30,181

9,245

1,482

252,541(1,843)

250,698¥9,212¥(390) ¥2,269¥203¥11,294¥(193)¥11,101b. Geographic segment information
For the second quarter ended December 31, 2009, net sales in Japan accounted for more than 90% of those of all thesegments. Consequently, details of each geographic segment information are not presented.
c. Sales outside JapanFor the second quarter ended December 31, 2009, sales outside of Japan amounted less than 10% of the consolidated
net sales, and therefore the information is not presented.

Notes on the going-concern assumption
Not applicable

Notes on significant changes in the amount of shareholders’ equity
The Company carries out stocks switch by the right use of Convertible Bonds for the second quarter ended December 31,
2010.The effect was to increase Capital stock by ¥4,302 million, to increase Capital surplus by ¥4,298 million for thesecond quarter ended December 31, 2010.