Summary of Financial Results for the Fiscal Year Ended August 31, 2020
[Japan GAAP] (Consolidated)
Company
Stock Code
Representative
Contact

October 13, 2020
Listed on the TSE

Watts Co., Ltd.

2735
URL: https://www.watts-jp.com/
Fumio Hiraoka, President and CEO
Hidehito Mori,T E L: +81-6-4792-3280
Executive Managing Director, Head of Corporate Planning Office
Expected date of annual shareholders’ meeting: November 25, 2020
Expected starting date of dividend payment: November 26, 2020
Expected date of filing of annual securities report: November 25, 2020
Preparation of supplementary financial document: Yes
Results briefing: Yes (for institutional investors)（Rounded down to million yen）

１. Consolidated business results for the fiscal year ended August 2020
(September 1, 2019 through August 31, 2020)(1) Consolidated results of operations(% change from the previous corresponding period)
Sales

Operating profit

Million yen %Million yen
Year ended Aug. 2020
52,795
2.7
1,768
Year ended Aug. 2019
51,3993.9716(Note) Comprehensive income:Fiscal year ended August 2020: 749 million yen (-%)
Fiscal year ended August 2019: -28 million yen (-%)

Recurring profit

%
146.7
-28.4

Net income
per share

Diluted net income
per share
Yen
Yen
Year ended Aug. 2020
57.80
Year ended Aug. 2019
5.26
(Reference) Investment earnings/loss on equity-method:
Fiscal year ended August 2020: -47 million yen
Fiscal year ended August 2019: 1 million yen

Million yen
1,731
656

Return on
equity
%
7.5
0.7

%
163.9
-36.8

Net income attributableto owners of parent
Million yen
%
774
997.3
70
-88.9

Ratio of recurring
profit to total assets
%
8.0
3.2

Ratio of operating
profit to sales
%
3.4
1.4

(2) Consolidated financial position
Total assets

Net assets

Million yen
As of Aug. 2020
21,544As of Aug. 2019
21,557(Reference) Shareholders’ equity:
As of August 2020: 10,481 million yen
As of August 2019: 10,150 million yen

Shareholders’ equity
ratio

Million yen
10,481
9,867

Net assets per
share

%
48.7
47.1

Yen
782.34757.62(3) Consolidated results of cash flows

Year ended Aug. 2020
Year ended Aug. 2019

Cash flows fromoperating activities
Million yen
922
2,279

Cash flows frominvesting activities
Million yen
-526
-832

Cash flows fromfinancing activities
Million yen
106
-510

Cash and cash equivalents
at the end of period
Million yen
6,591
6,075

2. Dividends
Annual dividendYear ended Aug. 2019Year ended Aug. 2020
Year ending Aug. 2021
(forecast)End of
1Q
Yen-

End of
2Q
Yen
0.00
0.00
0.00

End of3Q
Yen-

Year-end
Yen
10.00
15.00
15.00

Annual
Yen
10.00
15.00
15.00

Total
dividends(Total)Million yen
134
201

Dividend
payout ratio(Consolidated)
%
190.1
26.0
27.2

Rate of total
dividend to net
assets(Consolidated)
%
1.3
1.9

3．Forecast of consolidated business results for the fiscal year ending August 2021
(September 1, 2020 through August 31, 2021)(% change from the previous corresponding period)
Sales

For the six months
ending Feb. 2021
Year ending Aug. 2021

Operating profit

Net income
attributable to ownersof parent

Recurring profit

Net income pershare

Million yen%

Million yen%

Million yen%

Million yen%

Yen

24,940

-4.0

400

-49.1

370

-52.8

330

-21.5

24.63

50,960

-3.5

1,090

-38.4

1,040

-39.9

740

-4.4

55.23

※Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes inthe scope of consolidation): Yes
Excluded: 1 (Shanghai Watts Trade And Sales Co., Ltd.)(2) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: None: None: None: None(3) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included)
As of August 2020
13,958,800 shares
As of August 201913,958,800 shares② Treasury stock at the end of period:
As of August 2020
560,874 shares
As of August 2019
560,874 shares③Average number of stock during period
Fiscal year ended August 2020
13,397,926 sharesFiscal year ended August 201913,419,246 shares(Note) The number of treasury stock at the end of period includes the Company’s shares held by the share issuance trust for directors(FY8/20: 60,000 shares, FY8/19: 60,000 shares). In addition, the Company's shares owned by the share issuance trust for directors
are included in treasury stock deducted for calculation of the average number of shares during period (FY8/20: 60,000 shares,
FY8/19: 60,000 shares).

* Financial summary is not subject to the auditing procedures by certified public accountants or auditing firms* Explanation regarding appropriate use of business forecasts and other special instructions(Caution concerning forward-looking statements)
The forward-looking statements regarding future performance in this material are based on information currently
available to the Company and certain assumptions that the Company deems to be reasonable at the time this report was
prepared. Therefore, the Company does not make promises about the achievements. Actual results may differ
significantly from the forecasts due to various factors.
Please refer to “(4) future outlook” of “1. Results of operations” on page 4 for the suppositions that form theassumptions for business forecasts and cautions concerning the use of business forecasts.

1. Results of Operations………………………………………………………………………………………………………………… 2(1) Overview of operating results for the current fiscal year………………………………………………………………………. 2(2) Overview of financial position for the current fiscal year……………………………………………………………………… 3(3) Overview of cash flows for the current fiscal year……………………………………………………………………………… 3(4) Future outlook…………………………………………………………………………………………………………….…….. 4
2. Basic policy regarding selection of accounting standards………………………………………………………………………….4
3. Consolidated Financial Statements…………………………………………………………………………………………………5(1) Consolidated Balance Sheets…………………………………………………………………………………………………….5(2) Consolidated Statements of Income and Statements of Comprehensive Income………………………………………………..7(Consolidated Statements of Income)………………………………………………………………………………………..7(Consolidated Statements of Comprehensive Income)………………………………………………………………………8(3) Consolidated Statements of Changes in Net Assets………………………………………………………………………………9(4) Consolidated Statements of Cash Flows………………………………………………………………………………………….11(5) Notes to consolidated financial statements………………………………………………………………………………………12(Notes on going concern assumption)……………………………………………………………………………………..12(Changes in reporting method)…………………………………………………………………………………………….12(Segment information)……………………………………………………………………………………………………..12(Per share information)…………………………………………………………………………………………………….12(Important subsequent events)……………………………………………………………………………………………..12
4. Other(1) Changes in Directors……………………………………………………………………………………………………………...13(2) Sales……………………………………………………………………………………………………………………………….13- 1 -1. Results of Operations(1) Overview of operating results for the current fiscal year
During the fiscal year ended August 2020, the Japanese economy underwent a major change around February. Following thedeclaration of a State of Emergency in April due to the spread of the new coronavirus (COVID-19), which was an unexpectable atthe beginning of the fiscal year, in Japan and overseas, there were growing mood for restraint on going out due to following factors:
promotion of telework, temporary closure of commercial facilities, restaurants and schools, cancellation of various events. As aresult, consumer spending significantly decreased excepting special demand for stay-at-home products during pandemic. The
overall environment for corporate activities was also challenging, due to factors such as the uncertainties over the containment of
COVID-19, a significant decrease in real exports due to the stalled overseas economies and loss of inbound tourists demand, andsluggish capital investment. As a result, real GDP in the April-June 2020 period recorded an annualized decline of 28.1% year on
year, the largest post-war decline since the Global Financial Crisis.
Even after the State of Emergency was lifted on May 25, companies and individuals continue to search for ways to balancesocioeconomic activities with measures to prevent infection under the New Normal society.
Given this environment, in addition to the 100-Yen shop business in Japan, the Company, which operates the “Watts”, “Watts
with”, “meets.”, “silk”, etc., has been working on diversifying its revenue sources by undertaking other domestic businesses,
centering on the sale of life-style goods and discount goods as well as overseas business.
In the domestic 100-Yen shop business, the Company has introduced products with prices higher than 100 yen (from 200 yen to
1,000 yen), as well as the adoption for the new rule to charge for plastic bags and QR code payment. In addition, the Company
launched the Watts Online Shop and conducted a collaborative project with RODY to commemorate its 25th anniversary.
As for the new shop openings, the Company opened 129 shops against the full-year plan of 140 shops. There were 81 shop
closings (including 3 franchised shops), including certain unprofitable shops and unpredictable closing of shops where theCompany’s shops were located in. As a result, the total number of 100-Yen shops at the end of the current fiscal year was 1,240,
which includes 1,215 directly managed shops (net increase of 51), and 25 franchised/other shops (net decrease of 3).
Of these, the number of "Watts" and "Watts with", the Watts brand shops, increased to 639 (net increase of 119), accounting for
more than half of the total.
As for the number of the domestic other shops at the end of the fiscal year, “Buona Vita,” a life-style goods shop offering
comfortable life, was 21 shops (net increase of 1). It is working on sales promotion activities using LINE@ and improving theemployees' wrapping skills.
“Søstrene Grene”, a Denmark’s life-style variety shop, was 4 shops (net decrease of 1), but the Company has decided towithdraw from this business and is preparing to close these shops. The number of “Value-100,” the fresh-foods supermarket
collaboration and “Real,” the discount shop, remain unchanged with 1 shop and 6 shops, respectively.
Regarding the overseas operation, the Company operates “KOMONOYA”, a fixed-price shop mainly in Southeast Asia. At theend of the current fiscal year, “KOMONOYA” operates 50 shops in Thailand (net increase of 1), 2 shops in Malaysia (net decreaseof 6), 5 shops in Vietnam (net decrease of 4), and 20 shops in Peru (unchanged). In China, a fixed price shop “ 小物家园”(KOMONOKAEN) was 6 shops (net increase of 4). The total number of own-brand shops “KOMONOYA” and “小物家园”(KOMONOKAEN) was 83 (net decrease of 5).
Overseas sales declined due to the impact of temporary store closures caused by the spread of COVID-19.
100-Yen shop same-store sales were strong due to the effect of introducing products with prices higher than 100 yen and thegrowth in sales of hygiene products, handicrafts, and confectionery products due to countermeasures against COVID-19 andspecial demand for stay-at-home products during pandemic. As a result, for the current fiscal year, sales were 52,795 million yen(up 2.7% YoY, 100.9% to the plan), operating profit was 1,768 million yen (up 146.7% YoY, 119.5% to the plan), and ordinary
profit was 1,731 million yen (up 163.9% YoY, 121.1% to the plan).
Net income attributable to owners of parent was 774 million yen (up 997.3% YoY, 133.5% to the plan), mainly due to thetransfer of a local subsidiary in China and the recording of a loss on business liquidation associated with the withdrawal from thebusiness of Hillmar Japan Co., Ltd. (*Year on year: comparison with the results for the previous fiscal year. Ratio to plan: ratio tothe consolidated business forecasts for the fiscal year ended August 2020 which were announced in the “Notice Concerning
Revision to Business Forecast” on July 10, 2020.)
Since the Group operates under a single segment consisting of the operation of 100-Yen shops associated business, segment
information is omitted.

- 2 -(2) Overview of financial position for the current fiscal year
(Assets)
As of the end of the current fiscal year ended August 2020, current assets stood at 16,416 million yen, an increase of 316
million yen compared with the end of the previous fiscal year. This was mainly due to an increase of 516 million yen in cash
and deposits despite a decrease of 195 million yen in notes and accounts receivable-trade.
Noncurrent assets stood at 5,128 million yen, a decrease of 329 million yen compared with the end of the previous fiscal year.
This was mainly due to decreases of 182 million yen in guarantee deposits, 105 million yen in tools, furniture and fixtures, and 48
million yen in buildings and structures.
As a result, total assets stood at 21,544 million yen, a decrease of 13 million yen compared with the end of the previous fiscal
year.
(Liabilities)
As of the end of the current fiscal year ended August 2020, current liabilities stood at 9,661 million yen, a decrease of 713
million yen compared with the end of the previous fiscal year. This was mainly due to a decrease of 1,217 million yen in notes
and accounts payable-trade, despite increases of 289 million yen in accrued consumption taxes and 249 million yen in current
portion of long-term loans payable.
Noncurrent liabilities stood at 1,401 million yen, increased by 85 million yen from the end of the previous fiscal year. This was
mainly due to increases of 40 million yen in asset retirement obligations and 32 million yen in provision for directors' stock-based
benefits.
As a result, total liabilities stood at 11,062 million yen, a decrease of 627 million yen compared with the end of the previous
fiscal year.
(Net assets)
As of the end of the current fiscal year ended August 2020, net assets stood at 10,481 million yen, an increase of 614 million
yen compared with the end of the previous fiscal year. This is mainly because retained earnings increased by 639 million yen.
As a result, shareholders’ equity ratio stood at 48.7% (47.1% at the end of the previous fiscal year).
(3) Overview of cash flows for the current fiscal year
Cash and cash equivalents (hereinafter referred to as “cash”) at the end of the current fiscal year ended August 2020
amounted to 6,591 million yen, an increase of 516 million yen compared with the previous fiscal year.
Details and breakdown of each cash flow in the current fiscal year are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 922 million yen (2,279 million yen was provided in the previous fiscal year). Cashwas provided mainly by income before income taxes of 1,096 million yen, depreciation and amortization of 413 million yen, an
increase in accrued consumption taxes of 325 million yen, and loss on business liquidation of 310 million yen. Cash was usedmainly for a decrease of 1,112 million yen in accounts payable due to the fact that the last day of the previous fiscal year was afinancial institution holiday.
(Cash flows from investing activities)
Net cash used in investing activities was 526 million yen (832 million yen was used in the previous fiscal year). This was mainly
due to purchase of tangible fixed assets of 431 million yen for new shop openings and purchase of intangible assets of 110 million
yen associated with the renewal of the core system.
(Cash flows from financing activities)
Net cash provided by financing activities was 106 million yen (510 million yen was used in the previous fiscal year). This was
mainly due to proceeds from long-term loans payable of 838 million yen, repayments of long-term loans payable of 591 million
yen, and cash dividends paid of 134 million yen.

- 3 -(4) Future outlook
Consumer spending is expected to recover after bottoming out in the April-June period, partly due to the effects of policies suchas the provision of special cash payments and the "Go To Travel Campaign"; however, it will take some time for consumer spending
to fully recover, as it also depends on the establishment of fundamental treatments such as the development of a vaccine and therecovery of the employment environment. Corporate activities are expected to bottom out at the same time and gradually recoverin line with the recovery of domestic and foreign economic activity, but there will be variations by industry. However, there areuncertainties, such as the possibility that the impact of the escalating conflict between the U.S. and China will apparent and respread of COVID-19 pandemic, so the situation does not allow for optimism.
Given this situation, the Group continues to make every effort to offer value-for-money products by investing accumulated
earnings in product development, through low-cost opening and closing of shops and low-cost shop operations. Furthermore, tomeet the diversified consumer needs, the Group will continue to aim for being the 100-Yen shop where customers can find a valueof more than 100 yen.
Furthermore, with the aim of building a new revenue source to complement the 100-Yen shop business, the Group is actively
working on developing lines like “Buona Vita” and “Real”, to provide the new driving force for further growth in the future.
As for the overseas business that is expected to grow greatly in the future, the Company will strive to expand existing businessand develop new markets, in order to further expand the sales share within the Group and to earn profits.
With regard to the impact of COVID-19, the 100-Yen shop business performed well during the current fiscal year, mainly
owing to the special demand for stay-at-home products during pandemic. For the next fiscal year, the Company expects 100-Yen
shop same-store sales to be 96.0% of the previous fiscal year, partly due to the reactionary decline.
Based on the above, the Company forecasts the following consolidated operating results in the next fiscal year: sales of 50,960
million yen (down 3.5% year on year), operating profit of 1,090 million yen (down 38.4% year on year), recurring profit of 1,040
million yen (down 39.9% year on year) and net income attributable to owners of parent of 740 million yen (down 4.4% year onyear).
(Reference) Cash flow indicators

FY8/16Equity ratio (%)
Market value equity ratio(%)
Interest-bearing debt tocash flows ratio (years)
Interest coverage ratio(times)

FY8/17

FY8/18FY8/19FY8/20

50.1

49.7

52.2

47.1

48.7

70.3

88.0

64.5

38.3

58.5

1.7

1.3

1.7

0.4

1.4

148.8

284.3

157.9

522.6

197.5

(Notes) Equity ratio: Equity/Total assets
Market value equity ratio: Total market capitalization/Total assets
Interest-bearing debt to cash flows ratio: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest payment
1. Total market capitalization is calculated by multiplying closing stock price at the end of the period by the total
number of shares issued at the end of the period (excluding treasury stock).
2. Net cash provided by operating activities in the consolidated statements of cash flows is used as ‘Operating cash
flow.’
3. Interest-bearing debt includes all debt on which interest is paid reported on the consolidated balance sheet.
4. For interest payment, interest expenses paid in the consolidated statements of cash flows are used.

2. Basic policy regarding selection of accounting standards
In order to secure comparability with domestic peer companies, the Company applies Japanese accounting standards.

- 4 -3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)Previous fiscal year
(August 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Raw materials and supplies
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment loss
Buildings and structures, net
VehiclesAccumulated depreciation and impairment loss
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and impairment loss
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation and impairment loss
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets- 5 -Current fiscal year
(August 31, 2020)

6,075,315
2,535,234
7,081,181
7,571
98,166359,194-57,258
16,099,405

6,591,348
2,340,081
7,114,726
15,33957,652
320,877-23,849
16,416,177

1,846,084-1,066,489
779,594
23,480-15,053
8,427
3,566,030-2,873,042
692,988257,800
27,623-14,058
13,56428,3191,780,694

2,021,501-1,290,640
730,860
19,860-14,252
5,607
3,637,146-3,049,711
587,435
257,800
27,623-19,879
7,744
19,162
1,608,611

147,681
147,681

227,932
227,932

462,938
373,215
2,498,717
202,091-6,9463,530,016
5,458,392
21,557,797

436,438
406,098
2,316,365
143,227-10,166
3,291,964
5,128,507
21,544,684

(Thousands of yen)Previous fiscal year
(August 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations
Current portion of long-term loans payable
Income taxes payable
Accrued consumption taxes
Loss on liquidation of business
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Liabilities relating to retirement benefits
Provision for directors’ retirement benefits
Provision for directors' stock-based benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -Current fiscal year
(August 31, 2020)

4,696,346
3,589,730
434,366
245,379
110,152
32,163
187,223
1,080,003
10,375,364

3,479,165
3,686,438
684,324
169,097
399,90375,596
203,687
17,900945,519
9,661,633

572,851
276,781
24,73532,721
152,399
255,893
1,315,382
11,690,746

569,688297,928
27,772
65,245
192,735
247,987
1,401,358
11,062,992

440,297
1,637,636
8,325,881-273,120
10,130,694

440,297
1,354,136
8,965,680-273,120
10,486,994

5,411
14,443
19,855-283,500
9,867,050
21,557,797

15,857-21,158-5,301
10,481,692
21,544,684

(2) Consolidated Statements of Income and Statements of Comprehensive Income(Consolidated Statements of Income)(Thousands of yen)Previous fiscal year
(from September 1, 2018
to August 31, 2019)
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating revenues
Interest income
Dividends income
Equity in earnings of affiliates
Royalty income
Compensation income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Early-withdrawal penalty
Equity in losses of affiliates
Exchange loss
Other
Total non-operating expenses
Recurring profit
Extraordinary income
Surrender value of insurance
Gain on sales of noncurrent assets
Insurance income
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Loss on liquidation of business
Loss due to disaster
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income (loss)
Net loss attributable to non-controlling interests
Net income attributable to owners of parent- 7 -Current fiscal year
(from September 1, 2019
to August 31, 2020)

51,399,073
32,061,822
19,337,251
18,620,307
716,943

52,795,694
32,580,148
20,215,545
18,446,842
1,768,703

10,021
996
1,760
5,392
7,308
6,796
32,275

6,512
915
5,405
26,92235,542
18,73094,0286,415
49,27734,9492,527
93,169656,050

6,723
52,37147,54017,485
7,465
131,585
1,731,147

-

1,260
362
25,13826,761

20,678
197,643
59,368277,690378,359
386,050
20,715
406,765-28,405-98,980
70,5744,879
205,031426,904
24,791
661,605
1,096,302
361,974-40,050
321,924
774,378
774,378

(Consolidated Statements of Comprehensive Income)(Thousands of yen)Previous fiscal year
(from September 1, 2018
to August 31, 2019)
Net income (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 8 -Current fiscal year
(from September 1, 2019
to August 31, 2020)-28,405

774,378-15,070

10,445-3,048-33,588

18,375-2,012

256-28,149-25,156
749,22170,830749,221-98,980-

(3) Consolidated Statements of Changes in Net Assets
Previous fiscal year (from September 1, 2018 to August 31, 2019)(Thousands of yen)
Shareholders’ equity

Balance at the beginning ofcurrent period

Capital stock

Capital surplus

440,297

1,637,636

Retainedearnings
8,459,425

Treasury stock-137,991

Total
shareholders’equity10,399,368

Changes of items during
the period
Dividends from surplus-204,118-204,118

Net income attributableto owners of parent

70,57470,574

Acquisition of treasury
stock-135,128-135,128

Net change in items
other than shareholders'equityTotal changes of items
during the period---133,544-135,128-268,673

Balance at the end ofcurrent period

440,297

1,637,636

8,325,881-273,120

10,130,694

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

20,482-883

19,598-184,519

10,234,447

Changes of items during
the period
Dividends from surplus-204,118

Net income attributableto owners of parent

70,574

Acquisition of treasury
stock-135,128

Net change in items
other than shareholders'equity-15,070

15,327

256-98,980-98,723

Total changes of items
during the period-15,070

15,327

256-98,980-367,396

Balance at the end ofcurrent period

5,411

14,443

19,855-283,500

9,867,050- 9 -Current fiscal year (from September 1, 2019 to August 31, 2020)(Thousands of yen)
Shareholders’ equity

Balance at the beginning ofcurrent period

Capital stock

Capital surplus

440,297

1,637,636

Retainedearnings
8,325,881

Treasury stock

Total shareholders’equity-273,120

10,130,694

Changes of items during
the period
Dividends from surplus-134,579-134,579

Net income attributableto owners of parent

774,378

774,378

Increase (decrease) in
equity due to acquisitionof consolidated
subsidiaries-283,500-283,500

Net change in items
other than shareholders'equityTotal changes of items
during the period--283,500

639,799-356,299

Balance at the end ofcurrent period

440,297

1,354,136

8,965,680-273,120

10,486,994

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

5,411

14,443

19,855-283,500

9,867,050

Changes of items during
the period
Dividends from surplus-134,579

Net income attributableto owners of parent

774,378

Increase (decrease) in
equity due to acquisitionof consolidated
subsidiaries
Net change in items
other than shareholders'equity-283,500

10,445-35,601-25,156

283,500

258,343

Total changes of items
during the period

10,445-35,601-25,156

283,500

614,642

Balance at the end ofcurrent period

15,857-21,158-5,301-

10,481,692- 10 -

(4) Consolidated Statements of Cash Flows(Thousands of yen)Previous fiscal year
(from September 1, 2018
to August 31, 2019)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in liabilities relating to retirement
benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for directors' stockbased benefits
Increase (decrease) in provision for loss on businessliquidation
Interest and dividends income
Interest expenses
Loss on retirement of noncurrent assets
Loss on liquidation of business
Decrease (increase) in accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Purchase of investment securities
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other
Net cash provided by (used in) investing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayment of lease obligations
Purchase of treasury shares
Cash dividends paid
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 period
Cash and cash equivalents at end of period- 11 -

Current fiscal year
(from September 1, 2019
to August 31, 2020)

378,359
437,019
197,643
4,767
20,8219,439-

1,096,302
413,311205,031
5,721-1,823
16,464
17,90011,932

21,147-14,050

3,037

8,257

32,52332,16343,433-11,017
6,415
20,67827,205-281,144-264,452
1,779,582-12,587
195,979
2,547,012
10,603-4,363-273,256
2,279,996-7,428
6,723
4,879
310,918
109,883-156,182-1,112,894
325,759
19,3881,354,095
6,999-4,669-434,325
922,099-561,785-76,887-24,619-220,245
115,929--431,272
342-110,535-59,605-73,186
157,373-387--9,620-64,479-832,088-100,000
600,000-664,314-7,274-135,128-204,095-510,812-8,900928,194
5,147,120
6,075,315

600-526,290
838,342-591,547-6,286-134,413
106,094
14,129516,032
6,075,315
6,591,348

(5) Notes to consolidated financial statements(Notes on going concern assumption)
None(Changes in reporting method)(Consolidated Statements of Cash Flows)"Loss on business liquidation," which was included in "Other" under "Cash flows from operating activities" in the previous
fiscal year, has been presented separately from the current fiscal year due to an increase in its materiality. To reflect thischange in reporting method, the consolidated financial statements for the previous fiscal year have been reclassified.
As a result, 223,184 thousand yen, which was presented as "Other" under "Cash flows from operating activities" in the
consolidated statements of cash flows for the previous fiscal year, has been reclassified as "Loss on business liquidation" of
27,205 thousand yen and "Other" of 195,979 thousand yen.

(Segment information)
Since the Group has a single segment consisting of the operation of 100-Yen shops and associated business, thisinformation is omitted.
(Per share information)
Previous fiscal year
Current fiscal year
(from September 1, 2018(from September 1, 2019
to August 31, 2019)
to August 31, 2020)
Net assets per share
757.62 yen
782.34 yen
Net income per share
5.26 yen
57.80 yen
(Notes) 1. No diluted net income per share is presented because dilutive shares do not exist.
2. The Company's shares owned by the share issuance trust for directors are included in the treasury stock deducted in thecalculation of the total number of shares outstanding at the end of period, which is the basis for calculating net assets per
share. (FY8/19: 60,000, FY8/20: 60,000 shares).
3. The Company's shares owned by the share issuance trust for directors are included in the treasury stock deducted in thecalculation of the average number of shares during period, which is the basis for calculating net income per share.
(FY8/19: 60,000, FY8/20: 60,000 shares).
4. The basis for calculating net income per share and diluted net income per share are as follows.
Previous fiscal year
(from September 1, 2018
to August 31, 2019)
Net income attributable to owners of parent (thousandyen)
Amount that does not belong to common shareholders(thousand yen)
Net income attributable to owners of parent available tocommon shareholders (thousand yen)
Average number of shares during the period (shares)(Important subsequent events)
None- 12 -

Current fiscal year
(from September 1, 2019
to August 31, 2020)

70,574774,378--

70,574774,378

13,419,246

13,397,926

4. Other(1) Changes in Directors① Changes in Representative Directors
None② Changes in Other Directors
None(2) Sales
Sales by area and business type are as follows Area

(Thousands of yen)

Year-on-yearchange (%)

Hokkaido area

2,150,017

Tohoku area

Area

AmountNumber of shops
As of August 31,
2020

Newly opened

108.6

78

7

2

2,105,872

113.6

76

10

5

Kanto area

13,359,285

106.4

283

21

21

Chubu area

7,311,464

109.1

205

27

13

Kinki area
Chugoku/Shikoku
area
Kyushu area

10,861,046

104.4

225

17

15

4,870,335

105.9

190

32

15

4,810,624

108.3

158

15

7

100-Yen shop businessDirectly managed

45,468,645

106.9

1,215

129

78

Wholesale

7,327,049

82.6

140

20

28

Total

52,795,694

102.7

1355

149

106

- 13 -

Closed