Summary of Consolidated Financial Results
for the Three Months Ended May 31, 2022(Q1 FY2023)(Based on Japanese GAAP)
July 13, 2022
Company name:
ABC-MART, INC.
Stock exchange listing: Tokyo
Stock code:
2670
URL https://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:
July 14, 2022
Scheduled date to commence dividend payments:–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 three months ended May 31, 2022 (from March 1, 2022 to May 31, 2022)(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, 2022
69,171
10.5
10,53326.8
10,76324.4
7,017
30.6
Three months ended May 31, 2021
62,62543.6
8,305 255.7
8,653 211.4
5,373 407.7(Note) Comprehensive income:Three months ended May 2022 11,610 million yen (24.0%)
Three months ended May 2021 9,366 million yen (883.2%)
Earnings per share

Diluted earnings per share

YenYenThree months ended May 31, 2022
85.02–
Three months ended May 31, 2021
65.10–(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, revised on March 31, 2020), etc.
from the beginning of the three months ended May 31, 2022.
(2) Consolidated financial position
Total assets
As of May 31, 2022
As of February 28, 2022
(Reference) Shareholders’ Equity:
As of May 31, 2022

Net assets

Millions of yen
331,827
317,720
287,766 million yen

Equity ratio

Millions of yen
289,475
284,881

As of February 28, 2022

Net assets per share%
86.7
89.2

Yen
3,486.43
3,432.30

283,298 million yen

2. Cash dividends
Annual dividends per share

Year ended February 28, 2022
Year ending February 28, 2023

1st quarter-end

2nd quarter-end3rd quarter-end

Fiscal year-end

Yen––

Yen
85.00

Yen–

Yen
85.00

Yen
170.0085.00–85.00170.00Year ending February 28, 2023 (Forecast)(Note) Revisions to dividend forecasts published most recently: NoTotal

3. Forecast of consolidated financial results for the year ending February 28, 2023 (from March 1, 2022 to February 28, 2023)
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
Six months ending
132,200
9.0
15,90011.1
16,0008.4
10,5000.4
127.21
August 31, 2022
Full year
271,700
11.4
32,00016.6
32,20013.9
20,90020.2
253.21(Note) Revisions to financial forecasts published most recently: No14. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoYes(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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2022

82,539,646 shares As of February 28, 2022

82,539,646 shares

Number of treasury shares at the end of the period
As of May 31, 2022

506 shares As of February 28, 2022

472 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2022

82,539,160 shares Three months ended May 31, 2021

82,539,176 shares

THIS QUARTERLY CONSOLIDATED FINANCIAL RESULTS STATEMENT IS EXEMPT FROM THE QUARTERLY REVIEWPROCEDURES.
FORWARD LOOKING STATEMENTS AND OTHER SPECIAL ITEMSThe forecast for the year ending February 28, 2023 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, 2022

As of May 31, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade141,767
11,091

136,973
14,477

Securities
Inventories

10,181
59,847

11,31467,969OtherAllowance for doubtful accounts

4,180(145)

8,244
(157)

226,923

238,82134,711(19,233)

35,571(19,340)

15,47816,231

17,116(12,757)

17,763(13,366)

4,359

4,397

19,198293

19,253
308

438
(394)

432
(389)

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

4442

39,37340,232

393
509

300
322

Other

3,935

4,133

Total intangible assets

4,837

4,756

Investment securities
Shares of subsidiaries and associates

14,567609

15,970804Long-term loans receivable
Leasehold and guarantee deposits

1,450
25,9601,388
26,682Retirement benefit asset
Deferred tax assets

1
3,416

8
2,587

Other
Allowance for doubtful accounts

596
(16)

592
(17)

Total investments and other assets

46,58548,016

90,79693,005

317,720331,827

Total property, plant and equipment
Intangible assets
Trademark right
Goodwill

Investments and other assets

Total non-current assets
Total assets3

(Millions of yen)
As of February 28, 2022

As of May 31, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade

13,161

19,880

Short-term borrowings
Income taxes payable

1,350
4,884

2,056
3,940

Contract liabilities
Provision for bonuses

–984

665
1,724

Provisions
Asset retirement obligations

226
205

204
10

Notes payable - facilities
Other

933
9,521

1,277
10,806

Total current liabilities

31,26840,565

Non-current liabilities
Retirement benefit liability

313

501

Asset retirement obligations
Other345
911

556
727

Total non-current liabilities

1,570

1,785

32,83842,351

Shareholders' equity
Share capital

19,972

19,972

Capital surplus
Retained earnings

24,043
228,162

24,043
228,164

Total liabilities
Net assets

Treasury shares

(2)

(2)

272,176

272,177

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1,991
9,131

3,926
11,662

Total accumulated other comprehensive income

11,122

15,588

Total shareholders' equity
Accumulated other comprehensive income

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

4

1,582

1,709

284,881

289,475

317,720331,827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, 2021

May 31, 2022

Net sales
Cost of sales

62,62529,601

69,17132,365Gross profit

33,02436,806964

974

Advertising expenses
Storage costs

1,701
752

1,490
688

Remuneration, salaries and allowances for directors (and otherofficers)

6,499

6,848

Bonuses
Provision for bonuses

0777

0778

Retirement benefit expenses
Legal and other welfare expenses

193
951

233
1,065

Rent expenses on land and buildings
Depreciation

6,692
1,273

7,443
1,354

Utilities expenses
Commission expenses

461
1,724

562
1,975

Taxes and dues
Amortization of goodwill

401
190

393
209

Selling, general and administrative expenses
Packing and transportation costs

Other

2,135

2,253

Total selling, general and administrative expenses

24,71926,2738,305

10,533Operating profit
Non-operating income
Interest income

1827

Dividend income
Foreign exchange gains

25108

66
–Rent Income for house
Advertising medium income

2668236
8

Other

76

44

Total non-operating income

503

382

0–

15144
10108
36

Non-operating expenses
Interest expenses
Foreign exchange losses
Rental expenses
Other
Total non-operating expenses
Ordinary profit

5154

152

8,653

10,763

(Millions of yen)

Extraordinary income
Gain on sale of non-current assets

Three months ended

Three months ended

May 31, 2021

May 31, 2022–

13

Gain on sale of investment securities
Employment adjustment subsidies for covid19740–
42

Total extraordinary income

7555

59

45

Loss on valuation of investment securities
Impairment losses–2530517

Loss due to covid19

103

19

Extraordinary losses
Loss on retirement of non-current assets

188388

Profit before income taxes

Total extraordinary losses

8,540

10,431

Income taxes - current
Income taxes - deferred

3,111
(9)

3,351
(10)

Total income taxes

3,102

3,340

Profit

5,437

7,090

6473

5,373

7,017

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

Three months ended

Three months ended

May 31, 2021

May 31, 2022
5,437

7,090

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

1,841
2,086

1,935
2,583

Total other comprehensive income

3,928

4,519

9,366

11,6109,227

11,483

138

126

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

7