Summary of Consolidated Financial Results
for the Year Ended February 29, 2016
(Based on Japanese GAAP)
April 11, 2016
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 of ordinary general meeting of shareholders:
May 26, 2016
Scheduled date to file Securities Report:
May 27, 2016
Scheduled date to commence dividend payments:
May 27, 2016
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 29, 2016 (from March 1, 2015 to February 29, 2016)(1) Consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended February 29, 2016
Year ended February 28, 2015
(Note) Comprehensive income:Year ended February 2016

Millions of yen
238,154
213,584

Operating income%
11.5
13.6

Millions of yen
41,51439,651

Ordinary income%
4.7
16.2

Millions of yen
42,19640,405%
4.4
16.1

Net income
Millions of yen
26,13024,373%7.2
21.9

24,507 million yen (-15.2%) Year ended February 2015 28,887 million yen (10.8%)
Diluted net income
Ordinary
Operating
Net income per share
Net income/equity
per share
income/total assets
income/net sales
Yen
Yen%%%
Year ended February 29, 2016
331.17
–
14.6
17.9
17.4
Year ended February 28, 2015
323.71295.49
17.0
18.8
18.6
(Reference) Equity in earnings of affiliated companies:
Year ended February 2016 - million yen
Year ended February 2015 - million yen(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Net assets per share
As of February 29, 2016
As of February 28, 2015
(Reference) Shareholders’ Equity:
As of February 29, 2016
(3) Consolidated cash flows

Year ended February 29, 2016
Year ended February 28, 2015

Millions of yen
238,575
233,661

Millions of yen
203,652
155,535

203,131 million yen
Cash flows fromoperating activities
Millions of yen
22,552
29,691

%
85.1
66.4

As of February 28, 2015
Cash flows frominvesting activitiesMillions of yen(3,726)(9,568)Yen
2,461.25
2,059.68

155,082 million yen
Cash and cash equivalents
Cash flows fromfinancing activities
at end of period
Millions of yen
Millions of yen(13,567)
100,501(3,675)95,807

2. Cash dividends
Ratio ofDividend
Total cash
topayout ratio dividends
dividends (Total) (Consolidated)
net assets(Consolidated)

Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

TotalYen

Yen

Yen

Yen

Yen

Millions of yen%%

Year ended February 28, 2015Year ended February 29, 2016

––

40.00
60.00

––

60.00
60.00

100.00120.00

7,529
9,802

30.9
36.2

5.3
5.3

Year ending February 28, 2017 (Forecast)

–

60.00

–

60.00

120.0034.8

3. Forecast of consolidated financial results for the year ending February 28, 2017 (from March 1, 2016 to February 28, 2017)
Percentages indicate year-on-year changes
Profit attributable to
Net income
Net sales
Operating income
Ordinary income
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Six months ending
123,2002.3
24,1000.9
24,5000.8
15,8708.2
192.29August 31, 2016
Full year
243,000
2.0
42,7002.9
43,6503.4
28,4909.0345.2014. Notes(1) Changes in significant subsidiaries during the year ended February 29, 2016(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:
NoChanges in accounting policies due to other reasons:No
Changes in accounting estimates:
No
Restatement of prior period financial statements after error corrections:No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 29, 2016

82,532,416 shares As of February 28, 2015

75,294,429 shares

Number of treasury shares at the end of the period
As of February 29, 2016

393 shares As of February 28, 2015

208 shares

Average number of shares during the period
Year ended February 29, 2016

78,905,989 shares Year ended February 28, 2015

75,294,263 shares(Reference) Summary of Nonconsolidated Financial Statements
1.Nonconsolidated financial results for the year ended February 29, 2016 (from March 1, 2015 to February 29, 2016)(1) Nonconsolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended February 29, 2016
Year ended February 28, 2015

Millions of yen
174,167
159,655

Operating income
%
9.1
9.8

Millions of yen
36,75235,706%
2.9
15.4

Ordinary income
Millions of yen
37,73236,653%2.9
14.9

Net income
Millions of yen
23,041
22,104%4.2
22.1

Diluted net income
per share
Yen
Yen
292.01293.57267.98Net income per share
Year ended February 29, 2016
Year ended February 28, 2015
(2) Nonconsolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen
Millions of yen%Yen
As of February 29, 2016
205,497
178,29986.8
2,160.36
As of February 28, 2015
199,557
131,658
66.0
1,748.58(Reference) Shareholders’ Equity:
As of February 29, 2016 178,299 million yen
As of February 28, 2015 131,658 million yen2. Forecast of nonconsolidated financial results for the year ending February 28, 2017 (from March 1, 2016 to February 28, 2017)
Percentages indicate year-on-year changes
Net sales
Ordinary income
Net income
Net income per share
Millions of yen%
Millions of yen%
Millions of yen%
Yen
Six months ending
93,8104.8
22,6103.2
14,55012.0
176.30August 31, 2016
Full year
179,300
2.9
39,3204.2
25,52010.8
309.21NOTICE REGARDING AUDIT PROCEDURES FOR THE CONSOLIDATED FINANCIAL RESULTS
This consolidated financial results statement is exempt from the audit procedures based upon the Financial Instruments and Exchange Act. At this time ofdisclosure of this consolidated financial results statements, the audit procedure based upon the Financial Instruments and Exchange Act has not been completed.

FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe forecast for the year ending February 28, 2017 is based on ABC-MART, INC.'s hypotheses, plans and estimates at the date of publication. It is possiblethat some uncertain factors will cause the Company's future performance to differ significantly from the contents of forecast.

2Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2015
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Trademark right
Goodwill
Other
Total intangible assets

As of February 29, 2016

96,493
7,873
49,367
2,049
4,555
(41)

100,748
8,147
54,503
1,864
4,009
(24)

160,298

169,249

25,395(12,512)25,672(12,906)

12,883

12,766

9,006

9,540

(5,834)(6,447)

3,171

3,092

19,629327
438(334)

14,728
1,567
438
(368)

103

69

36,11532,223

2,948
7,511
2,083

2,563
6,236
2,339

12,543

11,139Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Lease and guarantee deposits
OtherAllowance for doubtful accounts

60
102
2,458
20,892
1,208(18)

552
102
2,243
21,8091,272(16)Total investments and other assets

24,70425,963

Total non-current assets
Total assets

373,36369,326

233,661

238,575

(Millions of yen)
As of February 28, 2015
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision
Asset retirement obligations
Notes payable - facilities
Other

As of February 29, 2016

14,176
6,355
1,000
9,815
702
291
14
722
7,992

10,675
3,191
500
7,778
831
424
19
892
7,661

41,07031,97533,000–500–

Provision
Net defined benefit liability
Asset retirement obligations
Other

113
870
291
2,280

–
799
312
1,835

Total non-current liabilities

Total current liabilities
Non-current liabilities
Convertible bond-type bonds with subscription rights toshares
Long-term loans payable

37,056

2,947

Total liabilities

78,12634,923

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

3,482
7,488
131,413(0)

19,972
23,978148,175(2)

142,384

192,125

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

14
12,683(2)
11,009Total accumulated other comprehensive income

12,697

11,006

Total shareholders' equity

Minority interests
Total net assets
Total liabilities and net assets

4453

520

155,535

203,652

233,661

238,575

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
February 28, 2015

Fiscal year ended
February 29, 2016

Net sales
Cost of sales

213,584
98,523

238,154
111,161

Gross profit

115,060

126,993

Selling, general and administrative expenses
Packing and transportation expenses
Advertising expenses
Warehousing expenses
Directors' compensations, salaries and allowances
Bonuses
Provision for bonuses
Retirement benefit expenses
Legal and employee benefits expenses
Rents
Depreciation

2,435
6,311
2,226
20,235
1,561
696
523
2,775
19,885
4,019

2,664
6,548
2,530
23,495
1,551
832
461
3,143
23,413
4,314

Utilities expenses
Commission fee
Taxes and dues
Amortization of goodwill
Other

2,189
4,144
873
1,161
6,369

2,179
4,791
1,138
1,272
7,142

Total selling, general and administrative expenses

75,40885,47939,651

41,514Non-operating income
Interest income
Rent Income
Advertising medium income
Other

169
743
56
303

131
744
68
184

Total non-operating income

1,273

1,129

54
67
230
166

52
93
265
37

Operating income

Non-operating expenses
Interest expenses
Foreign exchange losses
Rent expenses
Other
Total non-operating expenses
Ordinary income

5519

448

40,40542,196

(Millions of yen)
Fiscal year ended
February 28, 2015
Extraordinary income
Gain on sales of non-current assets

Fiscal year ended
February 29, 2016
4

1,524

4

1,524

–
171
253
–

690
171
1,761
95

425

2,719

Income before income taxes and minority interests

39,98541,001

Income taxes - current
Income taxes - deferred

16,100(536)

15,088(304)

Total income taxes

15,564

14,784

Income before minority interests

24,421

26,217

Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses

Minority interests in income
Net income

64786

24,373

26,130Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
February 28, 2015
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

Fiscal year ended
February 29, 2016

24,421

26,217(8)4,474(16)(1,693)

4,466(1,710)Comprehensive income

28,88724,507

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

28,80680

24,439677Consolidated statements of changes in equity
Fiscal year ended February 28, 2015
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,482

Retained earnings

7,488

112,310

Total shareholders'

Treasury shares

equity(0)123,281

Changes of items during period
Dividends of surplus(5,270)(5,270)Net income

24,37324,373Purchase of treasury shares

(0)

(0)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period––

19,103(0)

19,102

3,482

7,488

131,413(0)

142,384

Accumulated other comprehensive income
Valuation difference on
available-for-salesecurities
Balance at beginning of current
period23

Foreign currencytranslation adjustment
8,241

Total accumulated

Minority interests

Total net assets

other comprehensive
income8,265

372

131,919

Changes of items during period
Dividends of surplus(5,270)Net income

24,373Purchase of treasury shares
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

(0)
(8)

4,441

4,432

80

4,513

(8)

4,441

4,432

80

23,616

14

12,683

12,697453

155,535

8

Fiscal year ended February 29, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

3,482

7,488

16,49016,490Retained earnings
131,413

Total shareholders'Treasury sharesequity(0)

142,384

Changes of items during period
Issuance of new shares

32,980

Dividends of surplus(9,368)Net income

26,130Purchase of treasury shares(9,368)26,130(1)(1)

Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

16,49016,49016,762(1)

49,74019,972

23,978148,175(2)

192,125

Accumulated other comprehensive income
Valuation difference on
available-for-salesecurities
Balance at beginning of current
period14

Foreign currencytranslation adjustment
12,683

Total accumulated
other comprehensive

Minority interests

Total net assets

income12,697453

155,535

Changes of items during period
Issuance of new shares

32,980

Dividends of surplus(9,368)Net income

26,130Purchase of treasury shares
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

(1)
(16)

(1,674)(1,691)67(1,623)(16)(1,674)(1,691)

67

48,117(2)

11,00911,006520

203,652

9Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
February 28, 2015
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement of non-current assets
Impairment loss
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other, net

Fiscal year ended
February 29, 201639,985
4,019
46
24
(170)
54
21
166
253
(1,816)(7,980)
4,943
3,317

41,001
4,314
129
(19)
(132)
52
112
(662)
1,761
325
(5,678)(3,025)
1,323

Subtotal

42,86639,502

Interest and dividend income received
Interest expenses paid
Income taxes paid

147
(55)
(13,267)

121(50)(17,020)

Net cash provided by (used in) operating activities

29,691

22,552(506)–(6,099)5(366)
(89)
–
(8)

(120)
536
(10,985)
10,192
(829)
(95)
(536)
–

(1,314)

–

(65)
101
(2,526)
1,316(144)
128(130)
228(2,645)
840
(247)
67

Net cash provided by (used in) investing activities(9,568)(3,726)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other payments

2,617(1,003)(5,267)(22)(3,155)(1,000)(9,368)(43)

Net cash provided by (used in) financing activities(3,675)(13,567)

Effect of exchange rate change on cash and cash equivalents

604

(564)

Net increase (decrease) in cash and cash equivalents

17,051

4,694

Cash and cash equivalents at beginning of period

78,75595,807

Cash and cash equivalents at end of period

95,807

100,501

Cash flows from 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 store removal
Purchase of investment securities
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other payments
Other proceeds10