Consolidated Financial Statementsof the Fiscal Year Ending March 31, 2020
(Japanese accounting standards)
May 25, 2020

Corporate Name : H2O Retailing Corporation
Securities Code : 8242 (First Section of the Tokyo Stock Exchange)
URL : http://www.h2o-retailing.co.jp/
Representative : Naoya Araki, President and Representative Director
Contact : Gaku Watanabe, Executive Officer
TEL : +81-6-6365-8120
Scheduled date of shareholders' meeting : June 23, 2020
Scheduled date of filing of the financial report : July 15, 2020
Scheduled date of dividend payment : June 9, 2020
Preparation of supplementary materials : Yes
Briefing session on quarterly financial results : Yes (for institutional investors and analysts）(Figures are rounded down to the nearest million yen.)

1. Consolidated Business Results of the Fiscal Year ending March 31, 2020
（From April 1, 2019 to March 31, 2020）（1）Consolidated operating results (Cumulative total)(Percentages indicate year-on-year changes.)

Net Sales

Operating Profit

Millions of yen%

Millions of yen%

FY2020897,289(3.2)
11,171FY2019926,872
0.5
20,422
Note : Comprehensive income FY2020 (30, 174)million yen, ( -)% ,Net Income
per Share

Net Income per
Share(Diluted)

Yen

Profit attributableto owners of parent

Ordinary Profit
Millions of yen(45.3)(10.3)FY2019Millions of yen%

11,831(44.7)(13,150)
21,376(11.9)
2,162
3,592 million yen, (83.2)%(85.2)

Ratio of Operating
Income to Net Sales

Ratio of Ordinary
Income to Total Assets

Return on Equity

Yen

%

%

%

%

FY2020(106.38)
(5.0)
1.9
1.2
FY2019
17.50
17.39
0.8
3.2
2.2
Reference : Share of profit(loss) of entities accounted for using equity method FY2020 (226) million yen , FY2019 (179) million yen（2）Consolidated financial position
Total Assets
Millions of yen

FY2020FY2019Reference : Owner's equity

Owner's Equity Ratio

Net Assets
Millions of yen

586,904
244,634
663,335
279,603
FY2020 243,317 million yen , FY2019 278,364 million yen

Net Assets per Share

%

Yen

41.5
42.0

1,967.90
2,252.28（3）Consolidated cash flows
Cash flows fromoperating activities

Cash flows from investing
activities

Millions of yen

Millions of yen

10,03915,392(22,619)(36,682)

FY2020FY2019Cash flows fromfinancing activities

Cash and cash equivalents at
end of year
Millions of yen
Millions of yen(16,440)
9,581

25,95855,2292. Dividends
First
Quarter

SecondQuarter

Annual Dividends
Third
Fiscal YearQuarter
End

Total

Total Dividends
Payment(Annual)Payout Ratio(Consolidated)

Ratio of Dividends
to Net Assets(Consolidated)

Millions of yen％％

FY2019
20.00
20.00
40.00
4,943
FY2020
20.00
20.00
40.00
4,944
FY2021(Forecast)
Note : The forecast of dividends for the fiscal year ending March 31, 2021 yet to be determined

228.5
-

1.8
1.9

Yen

Yen

Yen

Yen

Yen

3. Forecast of Consolidated Business Results for the Fiscal Year ending March 31, 2021
（From April 1, 2020 to March 31, 2021）
The forecast of consolidated business results for the fiscal year ending March 31, 2021 yet to be determined because it is difficult toforecast reasonably the magnitude and duration of the impact of COVID-19 pandemic. The company will disclose them as soon as it
becomes possible to reasonably forecast.
These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan.

Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in the change in scope of consolidation) : No
(2) Changes in accounting policies, changes in accounting estimates or restatements(a) Changes in accounting policies due to changes in consolidated accounting standards : No(b) Changes other than (a) : No(c) Changes in accounting estimates : No(d) Restatements due to correction : No
(3) Number of shares issued and outstanding (common stock)(a) Number of shares issued at the end of the period (including treasury stock)
FY2020125,201,396 shares
FY2019125,201,396 shares(b) Number of shares of treasury stock at the end of the period
FY20201,558,219 shares
FY20191,609,297 shares(c) Average number of shares during the period
FY2020123,615,772 shares
FY2019123,538,732 shares
Note : These consolidated financial results are outside the scope of audit by certified public accountants or auditing firms
Note : Explanation regarding the appropriate use of forecast
The
forecastbusinessis basedresultson thefor
information
available
to thecompany
at present,
The above-mentioned
forecast of consolidated
the fiscal year
endingMarch
31, 2021
yet to be determined because it
and including a potential risk and uncertainty. Actual achievements may differ from these forecasts due to many factors.
is difficult to forecast reasonably the magnitude and duration of the impact of COVID-19 pandemic. Please refer to theattachment document p.6 "5. Forecast of FY2021" for more detail.

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

1. Consolidated Financial Results（millions of yen）
Mar. 31,2018
AmountMar. 31,
2019
AmountAmountMar. 31,2020
Inc./Dec.

YoY

Department Store469,604

494,608

473,225(4.3)%(21,382)

Supermarket

386,552

367,580

354,115(3.7)%(13,464)

Shopping Center

10,367

8,736

8,725

(0.1)%

(10)

Other

55,34655,94861,222

9.4%

5,274

Net Sales

921,871926,872

897,289(3.2)%(29,583)

Department Store

18,624

17,91911,486(35.9)%(6,433)

Supermarket

1,104

(438)

(2,503)-(2,064)

Shopping Center

4,985

4,281

4,141

(3.3)%

(139)

Other

3,098

5,030

2,903

(42.3)%(2,127)

consolidation
adjustment(5,047)(6,371)(4,856)-

1,514

Operating Profit

22,765

20,422

11,171(45.3)%

Ordinary Profit
Extraordinary income
Extraordinary losses
Profit24,272
5,243
6,296
14,636

21,376895
14,221
2,162

11,831
1,707
22,875(13,150)(44.7)%
90.6%
60.9%
-

versus forecast

Inc./Dec.

(3.3)%(30,710)(9,250)(30.2)%(4,828)(9,545)811
8,654(15,312)(27.0)%(4,368)-(18,150)※Net sales refer to sales to external customers.
※Kobe/Takatsuki business segment has been integrated into Department store business segment since FY2020 because
businesses of Sogo Kobe store and Seibu Takatsuki store were transferred to Hankyu Hanshin Department Stores Inc.
from H2O Asset Management Co., Ltd. on October 1, 2019, and these stores were rebranded to “Kobe Hankyu” and“Takatsuki Hankyu”.

▶SalesConsolidated sales of FY2020 were ¥897,289 million(-3.2% YOY). Half-year sales (April-September)
exceeded those for the same period last year benefited from solid domestic consumer spending and increased
inbound spending and a last-minute surge in demand before the consumption tax hike in September.
However, sales in Q3(October-December) and Q4(January-March) declined affected by a downturn inconsumer sentiment attributed to the consumption tax hike and warm winter weather. Furthermore, in Q4,
the company restrained some part of its department store operation or shortened its operating hours due tothe COVID-19 outbreak, this brought a huge impact on sales.
▶Operating Profit and Ordinary Profit
The company generated a consolidated operating profit of ¥11,171 million (-45.3% YOY) and aconsolidated ordinary profit of ¥11,831 million (-44.7% YOY) on account of a decrease in gross profit led bysales decrease, temporary store closure of Izumiya stores during the renovation period and increase indepreciation associated with Hanshin Umeda Wing Ⅰ.

－1－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020(Department store Business)
At Hankyu main store, sales decreased by 3.8% YOY. Sales grew until the end of Q2 backed up by solid
domestic and inbound demand, particularly for fashion, and a last-minute surge in demand before theconsumption tax hike. However, sluggish sales of apparel due to the fallback in demand following theconsumption tax hike and warm winter in Q3 in addition to shortening opening hours and restraints ofoperation to prevent COVID-19 spreading in 4Q resulted in full-year sales decline.
At Hanshin Umeda main store, sales decreased by 9.8% YOY. The negative repercussion after the opening
boom of Wing Ⅰ in the last fiscal year and operation restraints and other measures, similar to Hankyu main
store had done, affected sales.
On the other hand, at branch stores, sales, mainly in food halls, were relatively less affected despite the factsome stores took counter-measures to prevent COVID-19 spreading such as shortening opening hours and astore closure. Also, renovations of food halls at Kobe Hankyu (former Sogo Kobe store) and Takatsuki
Hankyu (former Seibu Takatsuki store), which rebranded in October 2019, proved successful.
As a result, sales fell short of the results of the previous year. Operating profit was down 35.9% YOY
owing to a decrease in gross profit led by sales decrease, increase in depreciation associated with Hanshin
Umeda Wing Ⅰ and increase in expenses regarding renovation and rebranding of Kobe Hankyu and Takatsuki
Hankyu.
※Kobe/Takatsuki business segment has been integrated into Department store business segment since FY2020 because
businesses of Kobe Hankyu (former Sogo Kobe store) and Takatsuki Hankyu (former Seibu Takatsuki store) weretransferred to Hankyu Hanshin Department Stores Inc. on October 1, 2019. In accordance with this change, the results ofthe previous fiscal year have been reclassified in line with the revised segment.

(Supermarket Business)
Sales and operating profit in Supermarket business decreased compared with those of the previous year.
Izumiya Co., Ltd.(Izumiya) recorded a decrease in sales, and continuously from the previous year
produced an operating loss. Izumiya opened, renewal/rebuilt 5 stores including Izumifuchu (Osaka),Hanazono (Osaka), and Hankyu Rakuhoku Square (Kyoto) as part of proceeding store restructuring and themodel conversion. Also, the company newly opened Shinchujo (Osaka) in May. Nevertheless, exiting store
sales were struggled due to the intensified competition and shrinkage of the amount of sales space of appareland home products concerning the GMS model conversion.
Although Hankyu Oasis Co., Ltd. promoted the review of pricing policy and cost- reduction, sales andoperating profit decreased because exiting store sales were struggled due to the intensified competition.
Hankyu Oasis newly opened Fukushima Fukumarudori 57 (Osaka), Kisela Kawanishi (Hyogo), and reopened Minami-Ibaraki (Osaka), Ibaraki Higashi-Nara (Osaka) which had been temporarily closed affectedby the earthquake occurred in June 2018.
(Shopping Center Business)
Sales and profit decreased from the last fiscal year.
Sales decreased mainly because of Centre Limited Liability Company. It operates SELCY the shopping
Center, and rental revenues decreased due to the closure of SELCY in May 2019 associated with an on-goingredevelopment project. Hankyu Shopping Center Development Co., Ltd. has opened Hankyu Rakuhoku
Square (former Qanat Rakuhoku) in December with the larger floor area, and it is getting good reputations
from neighbor customers. However, lost business days, construction expenses, and an increase ofdepreciation in line with this opening led to an operating loss.
(Other)Sales in Other business increased by 9.4% YOY, and operating profit dropped by 42.3% YOY.
Hankyu Freds Co., Ltd. operating bakery and cafe and asnas Co., Ltd operating convenience store andkiosk have become consolidated subsidiaries since this fiscal year, while Kazokutei Co., Ltd. and Sun Laurie
Co., Ltd. were transferred to SRS Holdings Co., Ltd. through a share exchange as of February 1 st, 2020.
At Persona Co., Ltd., credit transaction volume increased owing to a cashless payment program, pushingup sales and profit. Sales and profit in Hankyu Kensou Co., Ltd, also increased because orders for theinterior of hotels and restaurants grew. Nevertheless, Oi Development Co., Ltd operating “OURS INN
HANKYU” the business hotel which had been maintaining a high occupancy rate until the end of Q3
decreased in profit since the number of business travelers and foreign visitors plummeted in 4Q due to
COVID-19 expansion. Operating profit in H2O RETAILING Corporation was down compared to the last
fiscal year because dividends received from subsidiaries decreased.
－2－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020▶Profit attributable to owners of parent
The Company recorded a loss attributable to owners of parent of ¥13,150 million. Extraordinary losses
totaled 22,875 million, including Impairment losses of ¥14,196 million regarding Izumiya and Hankyu Oasis
stores and others and Business restructuring expenses of ¥3,854 million associated with the implementationof early retirement as part of Izumiya model conversion.

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Extraordinary losses

Amount
1,707
997
693
17
22,875（millions of yen）
Main contents(previous FY : 895)
Izumiya Izumisano, Wakaeiwata(previous FY : 14,221)
Izumiya, Hankyu Oasis, Hanku Hanshin
Department stores

Impairment losses

14,196

Business restructuring expenses

3,854

Izumiya: : early retirement bonus, valuation loss
on goods

Loss on retirement of non-current assets

1,848

Hankyu Hanshin Department stores, Izumiya,
Hankyu Shopping Center Development

Loss on sales of non-current assets

930

Izumiya Daito

Loss on liquidation of business

821

Liquidation of business of Kitchen Yell Kyushu,
Transfer of business of With System

Loss on closing of stores and others

747

SELCY rebuilding, Izumiya store conversion

Loss on share exchanges

477

a share exchange between KAZOKUTEI CO.,
LTD./ Sun Laurie Co., Ltd. and SRS HOLDINGS
CO.,LTD.

－3－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

2. Consolidated Balance Sheet(millions of yen)

Cash and deposits
Notes and accounts receivable-trade
Inventory
Total current assets
Total non-current assets
Total assets
Notes and accounts payable-tradeborrowings and bonds
Total liabilities
Shareholders' equity
Total net assets
Total liabilities and net assets

Mar. 31,2019
55,22949,88633,920150,003513,331
663,335

Mar. 31,2020
25,95844,44529,688112,116
474,788586,904

59,732
164,920
383,731239,755
279,603
663,335

43,917
151,713342,270
221,732
244,634
586,904

Inc./Dec.
(29,270)(5,440)(4,232)(37,887)(38,543)(76,431)(15,815)(13,206)(41,461)(18,022)(34,969)(76,431)

Total assets of FY2020 decreased by ¥76,431 million to ¥586,904 million. This was primarily attributable
to a decrease in cash and deposits of ¥29,270 million due to capital investment and repayments of borrowings,
property, plant and equipment of ¥11,695 million on account of sales of Izumiya stores, and Investment
securities of ¥25,308 million due to the sales of shares and the fall in the share prices of shares held by H2O.
Total liabilities amounted ¥342,270, fell ¥41,461 million compared with the last fiscal year. This was
mainly attributable to a decrease in Notes and accounts payable – trade of ¥15,815 million due to a decline inpurchases, and borrowings and bonds of ¥13,206 million owing to repayments of borrowings.
Given retained earnings decreased ¥18,094 due to a net loss, and valuation difference on available-for-salesecurities decreased ¥17,429 regarding the fall in the share prices, total net assets stood at ¥244,634 million, adecline of ¥34,969 million.

3. Capital Investment
Department StoreSupermarket
Shopping Center
Other
consolidation adjustment
Total

Amount
8,508
8,655
9,511
8,541
(92)
35,125(millions of yen)
Major contents
Hankyu Umeda Main store, Kobe Hankyu and Takatsuki Hankyu
New stores opening of Hankyu Oasis, Rebuilding of Izumiya stores
Expansion of Hankyu Rakuhoku Square, Rebuilding of Izumiya stores
Software development－4－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

4．Consolidated Cash Flow Statements(millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Income taxes paid
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of businesses
Proceeds from sales of property, plant andequipment
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Proceeds from long-term borrowings
Dividents paid
Total
Cash and cash equivalents

Mar. 31,2018
32,73923,21916,223
3,479(2,248)
1,796
833(5,721)(35,492)(19,197)(4,009)(14,536)

Mar. 31,2019
15,392
8,050
17,3992,592(3,017)968(2,249)(7,304)(36,682)(30,289)(3,713)-Mar. 31,2020
10,039(9,337)
18,51914,196
4,857
3,783(14,955)(5,525)(22,619)(26,535)(6,938)
(648)

3,259

1,412

8,826

(13,812)(2,000)(29,578)
30,150(4,938)(16,565)
67,1509,581
8,000(22,624)
20,040(4,941)(11,707)55,229(16,440)
7,000(20,375)
98(4,944)(29,020)
25,958Mar. 31,2019

Mar. 31,2020

Indicators related to cash flows
Mar. 31,2016

Mar. 31,2017

Mar. 31,2018

Equity ratio

42.3%

41.2%

42.4%

42.0%

41.5%

Equity ratio based onmarket price

40.3%

34.6%

36.4%

28.7%

16.7%

Interest-bearing debt tocash flow ratio

5.6

4.3

4.9

11.3

14.9

Interest coverage ratio

19.8x

36.1x

32.5x

21.1x

13.1x

Equity ratio: Equity / Total Assets
Equity ratio based on market price：Market Capitalization / Total Assets
Interest-bearing debt to cash flow ratio： Interest-bearing debt / Operating Cash flows
Interest coverage ratio：Operating Cash flows / Interest payment※1 These indicators are calculated based on figures from our consolidated financial statement.
※2 Market capitalization is calculated as the share price at period-end multiplied by the number of shares outstanding at
period-end (excluding treasury stock).
※3 Operating cash flows are the cash flows from operating activities as indicated in the consolidated cash flow statement.
Interest-bearing debt is all liabilities reflected on the consolidated balance sheets that are subject to interest payments.
Further, regarding interest payments, the amount of interest expenses paid in consolidated statements of cash flows isused.
※4 “Partial Amendments to the Accounting Standard for Tax Effect Accounting” (ASBJ No.28; February 16, 2018), etc.
have been applied from the beginning of the first quarter of the fiscal year ending March 31, 2019, and results forprevious terms are those after retrospective application.

－5－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

5．Forecast of FY2021

The company has been facing a never experienced situation with a drastic change in the social andeconomic environment by COVID-19 outbreak after February 2020.
Although the company is continuing to operate Supermarkets such as Izumiya and Hankyu Oasis, themainstay Department store business is seeing a serious decline in earning capacity under the exceptional
business operation. The company implemented shortening all department stores‘ opening hours from Marchand closing all stores after the declaration of the state of emergency in April (has been operating food halls insome stores). The forecast of consolidated business results for the fiscal year ending March 31, 2021 yet to
be determined. Given the forecast for consumption and spending following the environmental changes in the
future is untransparent, it is difficult to estimate the recovery of earnings reasonably. The company will
disclose them as soon as it becomes possible to reasonably forecast.
For a while, the company will operate businesses as appropriate following the requests from thegovernment, with prioritizing customers’ and employees’ safety and health. Besides, the company will strive
to enhance management efficiency through revision of capital investment and reducing costs such as
promotion cost, activity expenses, and fixed costs.

－6－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

6． Subsidiaries
The major subsidiaries of the Company as of March 31, 2020 are shown as follows:

H2O Retailing Corporation
Payment of group operating
contribution

Management and Corporate planning

sales of food products

Department store business
Hankyu Hanshin Department Stores, Inc.
H2O Asset Management Co., Ltd

Sales of goods andservice, etc
and one other

Supermarket Business
H₂O Foods Group Co.,Ltd.
Hankyu Oasis Co., Ltd.
Hankyu Foods, Inc.
HANKYU delica i, Inc.
Hankyu Bakery Co., Ltd.

Hankyu Food process Co., Ltd.

Izumiya Co., Ltd.
Qanat Co., Ltd.

Sales of goods andservice, etc

and one other

Other BusinessOi Development Co., Ltd
asnas Co., Ltd
Heart Dining, Inc.
Hankyu Kitchen Yell Kansai, Inc.
EveryD.com, Inc.
Hankyu B&C Planning
Hankyu Wedding Co., Ltd
Hankyu Hello Dog Co., Ltd.
Hankyu Home Styling Co., Ltd.
F.G.J Co.,Ltd.
Be-U Co., Ltd.
Suzhou Izumiya Co., Ltd.
Hankyu Quality Support Co., Ltd
Hankyu Job Yell Co., Ltd.
Hankyu Kenso Co., Ltd.
Hankyu Sennan Green Farm
Hankyu Dept. Stores Uniform Co., Ltd.
Hankyu Hanshin Department Stores Tomonokai Co., Ltd.

Leasing, etc

Hankyu Act For Co., Ltd
Persona Co., Ltd

Leasing, etc
and 16 others

Shopping Center Business
H2O Asset Management Co., Ltd
Hankyu Shopping Center Development Co., Ltd.
Kanso Co., Ltd.
Hankyu Maintenance Service Co., Ltd.
and four others

Sales of goods andservice, etc(Affiliates)
Ningbo Development Co., Ltd.
Hankyu Hanshin Point Co.,Ltd.
and 5 others

Other affiliate company
Hankyu Hanshin Holdings, Inc.

※ H2O Retailing Corporation, Hankyu Hanshin Department stores and etc lease real estate from Hankyu Corporation and others
which are the subsidiaries of Hankyu Hanshin holdings.

－7－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

7．Management Policy
Basic management policy

The company’s basic philosophy is “To remain indispensable to the local communities through our activities
of providing a model of lifestyle to local residents.” Guided by this philosophy, the company established avision; "To be a customer’s lifestyle partner to enrich their hearts through offering "fun, happy and tasty"
experiences, contributing to the future of the local community, children and our planet." The company strives
to enhance competitiveness and promotes each business, following the vision.

Mid- to long-term business plan and Challenges to be Addressed
The Japanese retail market is shrinking as a result of population aging, lower birthrates, and population
decline. One of the most characteristic points of the Group is to have various touchpoints with customers
since we operate different types of retail stores in the Kansai region. We strive to build up new customer
relationships and business models through integrating real store network and digital technologies, embody
and deepen strategy for ensuring market dominance in the Kansai region through offering our own uniquevalues. Furthermore, the company will achieve increased market share by strengthening stores in urban areas
and Supermarket business.
On the other hands, the company has been facing a never experienced situation with a drastic change in thesocial and economic environment by COVID-19 outbreak in the meantime. For a while, the company will
operate businesses as appropriate following the requests from the government, with prioritizing customers’
and employees’ safety and health. Besides, the company will strive to enhance management efficiency
through revision of capital investment and reducing costs such as promotion cost, activity expenses, and fixed
costs.
The establishment of quarantine, remote working, and online shopping and online communicating due to the
COVID-19 outbreak brought a new lifestyle. Seeing the COVID-19 era, and after, the company will engage
to develop a new business style and promote a work style reform to adapt to a new normal life. At the sametime the company aims to be a group that can attain sustainable growth, enhancing social values based oncontribution to the community and global environment. There is a possibility that society and economics
would be changed drastically depending on social conditions and trends regarding COVID-19. If thesefactors arise any changes on risks, measures, and business plan which would impact the company operation,
the company disclose these as appropriate.

Basic policy concerning profit distribution
The company's basic policy is to implement stable profit distribution with considering cash flow which
necessary for establishing an appropriate financial base for mid-, long-term, and investment for growth, basedon the performance of each fiscal year. The company will implement an appropriate profit distribution under
the consideration of an overall mid-, long-term plan, of Profit attributable to owners of parent, consolidated
net assets, and consolidated cash flow.

8．Basic policy concerning the accounting standard
The company adopts Japanese accounting standards as the accounting standard.

－8－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

Consolidated Financial Statements(1) Consolidated Balance Sheets
FY2019(as of March 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable -trade
Merchandise and finished goods
Work in progress
Raw materials and supplies
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Guarantee deposits
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total Assets

55,22949,886
31,600
329
1,990
6,778
4,643
(454)
150,003

25,95844,44527,732
348
1,607
7,618
4,740
(335)
112,116

319,564(203,956)
115,608
8,221(4,801)
3,420
147,281
7,666
46,820(35,937)
10,882284,860

308,287(190,311)
117,976
7,956(4,992)
2,964
139,351
1,248
47,145(35,520)
11,624273,165

4,076
14,68518,762

3,305
15,862
19,168

121,149
4,571
72,29095,841
7,026
70,42560
10,0082,020(2,927)
182,454474,788586,904

11,942
2,683(2,928)
209,709513,331
663,335－9－(Millions of yen)
FY2020(as of March 31, 2020)

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

FY2019(as of March 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Lease obligations
Income taxes payable
Gift certificates
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for loss on store closing
Provision for point card certificates
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and other officers)
Provision for redemption of gift certificates
Retirement benefit liability
Long-term accounts payable - other
Lease obligations
Long-term guarantee deposited
Asset retirement obligations
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
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total Liabilities and Net Assets－10－(Millions of yen)
FY2020(as of March 31, 2020)

59,732
8,000
20,201
19,655749
4,151
29,676
5,018
156
967
1,823
68
23,888174,092

43,917
15,00018,10021,976910
2,267
27,872
3,953
90
78
1,951
90
21,930158,139

20,000116,718
26,152
266
221
4,020
16,827
621
8,686
9,820
2,755
3,548
209,639383,731

20,00098,613
17,108
266
164
4,233
13,993287
13,806
9,632
3,165
2,858
184,131342,270

17,796
92,675132,278(2,995)
239,755

17,79692,650114,184(2,899)221,732

42,864124(788)(3,591)
38,6081,235
4
279,603
663,335

25,435124(1,128)(2,846)
21,5841,312
4244,634
586,904

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020(2) Consolidated Statements of Income(Millions of yen)
FY2020(From April 1, 2019
to March 31, 2020)
897,289
641,253
256,035

FY2019(From April 1, 2018
to March 31, 2019)926,872
660,636
266,235

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries and allowances
Rent expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on adjustment of accounts payable
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on provision for redemption of gift certificates
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Insurance income
Total extraordinary income
Extraordinary losses
Impairment losses
Business restructuring expenses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Loss on liquidation of business
Loss on closing of stores and others
Loss on share exchanges
Loss on disaster
Outplacement expenses
Expenses for opening new stores
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

77,05939,306
129,448245,813
20,42275,73840,286
128,838
244,863
11,171

80
1,326
1,429
1,051
3,887

169
1,314
1,487
884
3,855

728
1,066
179
958
2,932
21,376

772
1,058
226
1,138
3,196
11,831
-

895
895

1,707

2,592
1,266
546
7,228
1,402
672
514
14,221
8,050
4,696
1,192
5,888
2,162
0
2,162

－11－

997
693
17

14,196
3,854
1,848
930
821
747
477
22,875(9,337)
3,550
262
3,813
(13,150)0(13,150)

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020(3) Consolidated Statements of Cash FlowsFY2019(From April 1, 2018
to March 31, 2019)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Loss on store closing and others
Amortisation of goodwill
Loss (gain) on sale of businesses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in retirement benefit liability
Increase (decrease) in remeasurements of defined benefit plans
Increase (decrease) in provision for retirement benefits for directors(and other officers)
Increase(decrease) in provision for redemption of gift certificates
Increase(decrease) in provision for loss on store closing and others
Increase(decrease) in provision for point card certificatesInterest and dividend income
Interest expense
Insurance claim income
Loss on disaster
Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Business restructuring expenses
Loss on liquidation of business
Loss (gain) on share exchanges
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in gift certificates
Increase (decrease) in advances received
Other, net
Sub totalInterest and dividend income received
Interest paid
Income taxes paid
Proceeds from insurance income
Payments associated with disaster loss
Net cash provided by (used in) operating activities－12－(Millions of yen)
FY2020(From April 1, 2019
to March 31, 2020)

8,050
17,399
2,592
4,398
570
546
46
(74)

(9,337)
18,51914,196
170
581
(103)
(1,001)

(3)

(66)

2,001
(2,932)(2,626)
744

(6)

(7)

292
851
(135)
(1,406)
728
(895)
1,402
179
343
(3,017)968(2,249)(429)(4,193)(3,316)762
22,4731,401(730)(7,304)895(1,343)
15,392

213
(889)
129
(1,483)
772
(69)
2
226
(693)
(66)
773
3,854
375
461
4,857
3,783
(14,955)566(1,799)69(2,242)
14,953
1,368(766)(5,525)69(60)
10,039

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020(Millions of yen)
FY2020(From April 1, 2019
to March 31, 2020)

FY2019(From April 1, 2018
to March 31, 2019)
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Payments for asset retirement obligations
Purchases of investment securities
Proceeds from sales and redemption of short-term and long-term
investment securities
Proceeds from sale of businesses
Payments for acquisition of businesses
Payments for sales of shares of subsidiaries resulting in change inscope of consolidation
Long-term loan advances
Collection of long-term loans receivable
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other
Net cash provided by (used in) inveseting activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Proceeds from sales of treasury shares
Purchase of treasury shares
Dividends paid
Repayments of lease obligations
Proceeds from sale and leaseback transactions
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Net 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 year
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents－13－(30,289)
1,412(3,713)(374)(37)(26,535)
8,826(6,938)2(205)(1,288)

0

3,699

(45)
-

(648)

-

(23)

(696)
147
(6,335)
3,712(463)(36,682)(2,685)
2,554
(962)
1,549
35
(22,619)8,000
20,040(22,624)
9,946
0
(3)
(4,941)
(836)
-

7,000
98
(20,375)
0(2)(4,944)
(959)
2,742

(0)

-

9,581
(213)
(11,921)
67,150(16,440)(119)(29,139)
55,22955,229(130)
25,958

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

10． Supplementary Information
Consolidated
Selling, general and administrative expenses
Amount93,97340,286
10,833
17,617
19,952
14,123
14,96833,106244,863

Personnel expenses
Rent expenses
Advertising and decoration expenses
Depreciation and amortisation
Business consignment expenses
Sales commission
Transportation costs
OthersTotal

YoY(0.9)%
2.5%(25.2)%
7.3%
1.8%
14.6%
(3.1)%(1.0)%(0.4)%（millions of yen）
Inc./Dec.
(831)
980(3,649)
1,195
359
1,800
(482)
(322)
(949)

Non-operating Income and Expenses

Non-operating income
Interest income
Dividend income
Gain on adjustment of accounts payable
Other

Non-operating expenses
Interest expenses
Loss on provision for redemption of gift
certificates
Share of loss of entities accounted forusing equity method
Other

Amount
3,855
169
1,314
1,487
884

YoY

Amount
3,196
772

YoY

－14－

(0.8)%
110.6%(0.9)%
4.1%(15.9)%（millions of yen）
Inc./Dec.
(31)
88
(12)
58
(166)

9.0%
6.0%

Inc./Dec.
263
43

1,058

(0.7)%

(7)

226

26.2%

47

1,138

18.9%

180

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

Extraordinary Income and Losses

Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on bargain purchase
Extraordinary losses

Amount
1,707
997
693
17
22,875

Impairment losses

14,196

Business restructuring expenses

3,854

Loss on retirement of non-current assets

1,848

Loss on sales of non-current assets

930

Loss on liquidation of business

821

Loss on closing of stores and others

747

Loss on share exchanges

477（millions of yen）
Main contents(previous FY : 895)
Izumiya Izumisano, Wakaeiwata(previous FY : 14,221)
Izumiya, Hankyu Oasis, Hanku Hanshin
Department stores
Izumiya: : early retirement bonus, valuation
loss on goods
Hankyu Hanshin Department stores, Izumiya,
Hankyu Shopping Center Development
Izumiya Daito
Liquidation of business of Kitchen Yell
Kyushu,Transfer of business of With System
Izumiya store conversion,
SELCY rebuilding
a share exchange between KAZOKUTEI CO.,
LTD./ Sun Laurie Co., Ltd. and SRSHOLDINGS CO.,LTD.

Number of employees
Department StoreSupermarket
Shopping Center
Other
Total

As of March 2019
4,021
(1,382)
3,524(10,610)353(1,012)
1,736(2,812)
9,634(15,816)

As of March 2020
4,195
(949)
3,399
(10,560)
348
(909)
1,628
(2,873)
9,570(15,291)※1．The number of employees is the operational staff basis (excluding employees seconded to other company,
and including employees seconded from other company and executive officers).
※2．( ) shows the average number of temporary employees.
※3．The number of employees of Department store business as of March 2019 is a total of former Department
store business and Kobe/Takatsuki business.

－15－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

Hankyu Hanshin Department Stores, Inc.
Overview（millions of yen）
Amount450,458
106,670
23.68%
1,950
96,94221.52%
11,679
2.59%

Net Sales
Gross Profit
Gross profit/ Net Sales
Other operating revenue
SG & A
SG & A/ Net Sales
Operating profit
Operating profit/ Net Sales

YoY(0.3)%(2.5)%
244.9%
4.9%(33.5)%-

Inc./Dec.
(1,249)(2,737)(0.54)pt
1,384
4,525
1.06pt(5,878)(1.29)pt※ Kobe/Takatsuki business segment has been integrated into Hankyu Hanshin Department stores, Inc. from H2O
Asset Management Co., Ltd. on October 1, 2019

▶In Hankyu Main store, inbound sales decreased by 7%, and the sales composition ratio reached 12%▶SG&A increased regarding the integration of Kobe/Takatsuki business

Gross sales by stores, Number of customers
Sales

YoY

（millions of yen, thousands of people, square meters）
Number of
YoY
Sales area
customers
45,768(9.0)%
98,761
29,160(11.5)%
27,811
4,682(4.4)%
13,902
4,444
38,6385,807(4.2)%
15,528※5 6,148
13,046(3.2)%
25,099※5 2,100
8,963
42,40926,360(5.3)%
41,8352,475(2.6)%
11,4255,403(1.9)%
2,042
3,436(10.1)%
1,917※5 2,855
4,404(1.2)%
4,998
4,803(1.6)%
804
83,82914.1%
209,701
158,758
1.3%
336,273
145,349(7.3)%
255,225

Hankyu Main Store ※1
241,290(3.8)%Hanshin Umeda Main Store
46,335(9.8)%
Senri Hankyu
15,207(4.9)%
Takatsuki Hankyu ※2
10,224
Kawanishi Hankyu
14,788(5.7)%
Takarazuka Hankyu
7,368(2.6)%
Nishinomiya Hankyu
24,982(3.0)%
Sanda Hankyu
1,364(2.0)%
Kobe Hankyu ※2
18,868
Hakata Hankyu
49,194(4.7)%
Hankyu Men's Tokyo
12,884(9.4)%Oi Hankyu Food Hall
4,539
0.5%
Tsuzuki Hankyu ※34,560(4.5)%
Amagasaki Hanshin
2,922(1.3)%Hanshin Nishinomiya
4,480(1.7)%Hanshin Mikage
524(1.4)%
Total of branch stores
171,912
14.9%
Total stores
459,538
1.7%
Exiting stores ※4
430,445(4.7)%※1．including Hankyu Men's Osaka※2．operating since October 5, 2019. Total of sales including sales in department stores and tenants※3．terminated operations of the first floor on January 19, 2020
※4．excluding Kobe Hankyu and Takatsuki Hankyu※5．not counting the number of customers－16－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

Sales of each category(millions of yen)Sales
39,79660,961
9,685
10,380120,824
84,19812,736135,179
9,299
84,3882,390
10,521
459,538

Men's clothing
Women's clothingChildren's clothing
Other clothing
Clothing
Accessories, bags and others
Household merchandise
Foods
Restaurants & cafes
General merchandise
Service
Other
Total

YoY
(3.7)%(4.7)%(2.8)%(8.5)%(4.6)%(1.9)%(4.6)%
5.2%(5.2)%
0.4%
9.7%
631.7%
1.7%

Share
8.7%
13.3%
2.1%
2.3%
26.3%
18.3%
2.8%
29.4%
2.0%
18.4%
0.5%
2.3%
100.0%

Monthly Sales

Hankyu Main Store ※1
Hanshin Umeda Main Store
Total of branch stores
Total
Total (not including
Hanshin Umeda Main Store)
Existing stores ※2

Hankyu Main Store ※1
Hanshin Umeda Main Store
Total of branch stores
Total
Total (not including
Hanshin Umeda Main Store)
Existing stores ※2

April
4.6%
(15.1)%
1.2%
1.0%

May
0.4%
0.5%
(0.3)%
0.2%

June
7.6%
(20.9)%
2.0%
1.8%

July
3.8%
(4.1)%(2.1)%
1.0%

August6.7%(3.6)%(2.2)%
2.5%

September
29.5%
21.7%
7.2%
21.3%

3.4%

0.1%

5.4%

-

-

-

-

-

-

-

-

-

October(15.8)%(15.1)%
24.7%(2.5)%

November(5.9)%(6.6)%
33.7%
7.4%

December(5.5)%(5.8)%
36.1%
8.0%

January(1.4)%(2.5)%
32.1%
10.2%

February(18.1)%(19.9)%
35.8%(1.8)%

March(41.3)%(42.5)%(0.6)%(28.0)%

-

-

-

-

-

-

(14.5)%(5.4)%(4.6)%(1.8)%(14.3)%(38.0)%※1．including Hankyu Men's Osaka※2．excluding Kobe Hankyu and Takatsuki Hankyu－17－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

Izumiya Co., Ltd.
Overview
Amount210,924
54,49525.84%
14,54372,18434.22%(3,145)-Net Sales
Gross Profit
Gross profit/ Net Sales
Other operating revenue
SG & A
SG & A/ Net Sales
Operating profit
Operating profit/ Net Sales

Sales of existing stores

YoY(3.4)%(6.3)%(1.2)%(2.6)%-

Numbers of stores
YoY

Foods
Clothing
Household goods
Total（millions of yen）
Inc./Dec.
(7,354)(3,681)(0.82)pt(182)(1,945)0.26pt(1,918)-(5.3)%(12.0)%(7.8)%(6.6)%Total
YoY difference

Number of stores
84(1)

Opening and closing stores
OpeningIzumi Fuchu (Osaka), Shin-Chujo (Osaka), Hanazono(Osaka)Higashi-Neyagawa (Osaka), Izumisano(Osaka), Wakaeiwata(Osaka),
Closing
Miyazaki(Miyazaki)Monthly Sales
Total
Existing stores

April(3.6)%(5.4)%

May(0.5)%(2.8)%

June(0.4)%(3.5)%

July(9.6)%(12.1)%

August(2.1)%(4.3)%(YOY)
September
1.1%(0.8)%

Total
Existing stores

October(11.9)%(13.5)%

November(6.8)%(6.9)%

December(7.9)%(9.2)%

January(8.9)%(9.3)%

February
0.5%(0.4)%

March(3.5)%(2.8)%－18－

H2O Retailing Corporation（8242）
Consolidated Financial Statements
for the Fiscal Year Ending March 31,2020

Hankyu Oasis Co., Ltd.
Overview
Amount109,415
28,83926.36%
7,037
35,86732.78%
9
0.01%

Net Sales
Gross Profit
Gross profit/ Net Sales
Other operating revenue
SG & A
SG & A/ Net Sales
Operating profit
Operating profit/ Net Sales

YoY(2.8)%(0.4)%
5.2%
1.9%(97.9)%-

Number of stores

Sales of existing stores
YoY
Total

（millions of yen）
Inc./Dec.
(3,177)(116)
0.64pt350
679
1.53pt(445)(0.40)pt

Total
YoY difference(4.8)%

Number of stores
78
2Opening and closing stores
Opening
Closing

Fukushima Fukumarudori 57 (Osaka), Kisela Kawanishi(Hyogo),
Reopening after earthquake damage: Minami-Ibaraki(Osaka), Ibaraki
Higashi-Nara(Osaka)
Yamashita(Hyogo), Kumata(Osaka)Monthly Sales

Total
Existing stores

April(5.6)%(3.0)%

May(6.4)%(5.1)%

June(5.3)%(5.9)%

July(7.3)%(8.4)%

August(4.4)%(7.8)%(YOY)
September(2.8)%(6.0)%

Total
Existing stores

October(4.5)%(7.5)%

November(0.8)%(4.8)%

December(2.0)%(5.9)%

January(1.9)%(5.8)%

February
3.0%(0.7)%

March
5.0%
2.6%

－19－