Summary of Consolidated Financial Results
for the Six Months Ended August 31, 2019(Q2 FY2020)(Based on Japanese GAAP)
October 9, 2019
Company name:
ABC-MART, INC.
Stock exchange listing: Tokyo
Stock code:
2670
URL http://www.abc-mart.co.jp/ir/
Representative:
President and Representative Director
Minoru Noguchi
Inquiries:
Director, Corporate Planning Office Manager Jo Kojima
TEL 03-3476-5452
Scheduled date to file Quarterly Securities Report:
October 10, 2019
Scheduled date to commence dividend payments:
November 11, 2019
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended August 31, 2019 (from March 1, 2019 to August 31, 2019)(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%Six months ended August 31, 2019
140,158
5.5
25,3242.725,839
2.1
17,331
2.4
Six months ended August 31, 2018
132,832
3.1
24,652
4.1
25,298
4.3
16,922
5.2(Note) Comprehensive income:Six months ended August 31, 2019 14,805 million yen (3.8%)
Six months ended August 31, 2018 14,265 million yen (△10.8%)
Earnings per share

Diluted earnings per share

Yen
210.00205.04Six months ended August 31, 2019
Six months ended August 31, 2018

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2019
As of February 28, 2019
(Reference) Shareholders’ Equity:
As of August 31, 2019

Net assets

Millions of yen
305,783
296,941
264,397 million yen

Equity ratio

Net assets per share

Millions of yen
265,453259,315

%
86.5
87.0

As of February 28, 2019258,376 million yen

Yen3,203.58
3,130.62

2. Cash dividends
Annual dividends per share

Year ended February 28, 2019Year ending February 29, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
65.00
85.00

Yen–

Yen
105.00Yen
170.00–85.00170.00Year ending February 29, 2020 (Forecast)(Note) Revisions to dividend forecasts published most recently: NoTotal

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
278,300
4.3
45,2002.9
45,7001.3
30,8601.9
373.90(Note) Revisions to financial forecasts published most recently: No14. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2019(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
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
NoRestatement 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 August 31, 201982,532,416 shares As of February 28, 201982,532,416 shares

Number of treasury shares at the end of the period
As of August 31, 2019

470 shares As of February 28, 2019393 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 201982,531,974 shares Six months ended August 31, 201882,532,023 sharesTHIS QUARTERLY CONSOLIDATED FINANCIAL RESULTS STATEMENT IS EXEMPT FROM THE QUARTERLY REVIEWPROCEDURES.
FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe forecast for the year ending February 29, 2020 is based on ABC-MART, INC.'s hypotheses, plans and estimates at the date of publication. It is possible thatsome uncertain factors will cause the Company's future performance to differ significantly from the contents of forecast.

2

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2019

As of August 31, 2019Assets
Current assets
Cash and deposits
Notes and accounts receivable - trade139,914
10,423

143,708
10,479Inventories
Other

65,665
4,648

67,135
8,546

(42)

(45)

220,610229,823

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

30,26630,642

Accumulated depreciation(16,089)(16,254)

Buildings and structures, net

14,176

14,387

13,612

13,944

Accumulated depreciation(8,818)(8,920)Tools, furniture and fixtures, net

4,794

5,023

17,09917,011203432300461

(378)

(391)

Tools, furniture and fixtures

Land
Construction in progress
Other
Accumulated depreciation
Other, net

547036,32836,794

Intangible assets
Trademark right

1,570

1,340

Goodwill
Other

2,876
2,392

2,407
2,501

Total intangible assets

6,840

6,248

Investments and other assets
Investment securities

4640

Shares of subsidiaries and associates
Long-term loans receivable

2,647
1,802

2,647
1,721

Lease and guarantee deposits
Deferred tax assets

24,961
3,087

24,8783,030

Other
Allowance for doubtful accounts

634
(17)

612(16)

Total investments and other assets

33,162

32,916

Total property, plant and equipment

Total non-current assets
Total assets

376,330

75,959296,941

305,783

(Millions of yen)
As of February 28, 2019

As of August 31, 2019

Liabilities
Current liabilities
Notes and accounts payable - trade

13,877

16,504

Short-term loans payable
Income taxes payable

2,189
7,721

1,518
8,451

Provision for bonuses
Provision

915
361

964
224

23
1,227

18
1,654

Asset retirement obligations
Notes payable - facilities
Other9,264

8,993

Total current liabilities

35,58038,330Net defined benefit liability
Asset retirement obligations

703
377

649
421

Other964

927

Non-current liabilities

Total non-current liabilities

2,045

1,998

37,62640,329

Capital stock
Capital surplus

19,972
23,97919,972
23,979Retained earnings
Treasury shares

205,591(2)

214,257(2)

Total shareholders' equity

249,542258,207828

Foreign currency translation adjustment

8,825

6,161

Total accumulated other comprehensive income

8,833

6,189

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Non-controlling interests
Total net assets
Total liabilities and net assets

4938

1,056

259,315265,453

296,941

305,783

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

August 31, 2018

August 31, 2019

Net sales
Cost of sales

132,832
60,912

140,158
65,390Gross profit

71,92074,767

Selling, general and administrative expensesPacking and transportation expenses

1,604

1,796

Advertising expenses
Warehousing expenses

2,847
1,583

2,816
1,565

Directors' compensations, salaries and allowances
Bonuses

12,714399

13,611
403

905
199

965
209

Legal and employee benefits expenses
Rents

1,913
14,1072,034
13,883

Depreciation
Utilities expenses

2,177
1,092

2,389
1,090

Commission fee
Taxes and dues

2,863
881

3,371
925

Amortization of goodwill
Other

418
3,557

394
3,983

Total selling, general and administrative expenses

47,26749,44324,652

25,324

Interest incomeRent Income

73559

79513

Advertising medium income
Other

21287

19285

Total non-operating income

942

897

4437231101247

Provision for bonuses
Retirement benefit expenses

Operating profit
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Rent expenses
Other

2330

Total non-operating expenses

296

383

25,29825,839Ordinary profit

5

(Millions of yen)

Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets

Six months endedSix months ended

August 31, 2018

August 31, 2019
53–

53–

91

74

Impairment loss
Other

188
1338
–

Total extraordinary losses

281

413

Profit before income taxes

25,07025,425

Income taxes - current

8,224

7,921

Income taxes - deferred

(154)

19

Total income taxes

8,070

7,940

Profit16,99917,48577

153

16,922

17,331

Profit attributable to non-controlling interests
Profit attributable to owners of parent

6

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

Six months ended

Six months ended

August 31, 2018

August 31, 2019
16,99917,4850(2,734)

19(2,699)(2,734)(2,680)14,26514,805

14,224

14,687

41

117

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

August 31, 2018

August 31, 2019
25,07025,425

2,271
12,40550

Increase (decrease) in allowance for doubtful accounts
Interest and dividend income

3(74)

4(80)

Interest expenses
Foreign exchange losses (gains)

4(16)

476

Loss (gain) on sales and retirement of non-current assets
Impairment loss

39188

74338

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(1,035)(5,769)(1,828)(2,557)

Increase (decrease) in notes and accounts payable - trade
Other, net

1,000
1,499

2,831128

Subtotal23,181

26,873

67(4)

73
(4)

Depreciation
Increase (decrease) in provision for bonuses

Interest and dividend income received
Interest expenses paid
Income taxes paid

(6,936)(7,197)

Net cash provided by (used in) operating activities

16,30819,745––(5)(1,922)(3,570)1,226(3,044)90

Purchase of intangible assets
Payments for store removal

(396)
(70)

(450)
(8)

Payments of loans receivableCollection of loans receivable

(100)
188

(100)
184

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

(766)
339

(1,037)309

Other payments
Other proceeds(140)
12(50)
26

Net cash provided by (used in) investing activities(3,277)(6,009)Cash flows from financing activities
Net increase (decrease) in short-term loans payable

Cash flows from investing activities
Payments into time deposits
Purchase of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(1,107)(667)

Cash dividends paid
Other payments(5,773)(0)(8,657)(0)

Net cash provided by (used in) financing activities(6,881)(9,325)

Effect of exchange rate change on cash and cash equivalents

(500)

(612)

Net increase (decrease) in cash and cash equivalents

5,648

3,796

Cash and cash equivalents at beginning of period

126,782

139,743

Cash and cash equivalents at end of period

132,430

143,5408