Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended August 31, 2018
(Based on Japanese GAAP)
October 12, 2018
Company name:
IDOM Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

7599
President

URL

https://221616.com
Yusuke Hatori

Inquiries:
General Manager, Finance & IR Division
Scheduled date to file Quarterly Securities Report:

Masayuki Matsumoto
October 15, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

November 9, 2018
Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-5208-5503(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended August 31, 2018 (from March 1, 2018 to August 31, 2018)(1) Consolidated operating results (cumulative)
Net sales
Six months ended August 31, 2018
Six months ended August 31, 2017

Millions of yen
143,937
135,468

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
6.3
445 (82.4)(106)–(598)
–
9.0
2,528
16.4
2,032
0.6
1,121
1.8

Earnings per share

Diluted earnings per share

Yen(5.90)
11.06

Six months ended August 31, 2018
Six months ended August 31, 2017

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2018
As of February 28, 2018Net assets

Millions of yen
138,220130,181

Equity ratio

Millions of yen
40,15741,494

Net assets per share%
28.7
31.4

Yen
391.01403.71

2. Cash dividends
Annual dividends per share

Year ended February 28, 2018Year ending February 28, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
3.50
5.50

Yen–

Yen
3.50

Yen
7.00

–

5.50

11.00

Year ending February 28, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2019 (from March 1, 2018 to February 28, 2019)
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
290,000
5.0
3,000 (55.7)
2,000 (65.5)700 (80.4)
6.90

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(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:
Changes in accounting policies due to other reasons:

No
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 August 31, 2018106,888,000 shares As of February 28, 2018106,888,000 shares

Number of treasury shares at the end of the period
As of August 31, 2018

5,480,470 shares As of February 28, 2018

5,480,470 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2018

101,407,530 shares Six months ended August 31, 20172

101,407,649 shares

Analysis of Operating Results and Financial Position for the Second Quarter(1) Analysis of consolidated operating results
In the second quarter of the fiscal year under review (March 1, 2018 to August 31, 2018) retail car sales from all directly managed
stores totaled 61,123, down 3.0% from the same term last year. Sales per store and gross profits per unit fell due to changes inpricing structure and sales strategy.
For SG&A expenses, store management expenses increased incidental to the increase in the number of stores.
The Australia business showed an improvement on the back of a growth in sales while the new car market in Western Australia has
bottomed out but remained sluggish.
As a result of the above, consolidated business results for the second quarter were net sales of 143,937 million yen (up 6.3% fromthe same term last year.), operating income of 445 million yen (down 82.4%), ordinary loss of 106 million yen (same term lastyear was income of 2,032 million yen), and loss attributable to owners of parent of 598 million yen (same term last year wasincome of 1,121 million yen).
Regional segment-specific earnings are as indicated below.
I. JapanJapan segment resulted in net sales of 116,542 million yen (up 3.1% from the same term last year) and segment income (operatingincome) of 538 million yen (down 82.0%). Average selling price was increased, however, retail unit sales and gross profits pervehicle declined.
II. Australia
Australia segment recorded net sales of 26,418 million yen (up 22.5% from the same term last year) and segment income(operating income) of 52 million yen (the same term last year was operating losses of 274 million yen). This was attributable to thethe increases in sales volume while the new car market in Western Australia has bottomed out but remained sluggish.

(2) Analysis of financial position
AssetsAs of the end of second quarter ended August 31, 2018, total assets were 138,220 million yen (up 6.2% compared to the end of theprevious fiscal year, February 28, 2018).
Current assets were 84,624 million yen (up 10.0% compared to the end of the previous fiscal year) on increased inventory (up12,025 million yen) offsetting decreased cash and deposit (down 6,197 million yen) . The reason for the increased inventory is thelarger percentage of higher-priced cars while unit volume declined.
Non-current assets were 53,596 million yen (up 0.7 % compared to the end of the previous fiscal year) on increased buildings andstructures (up 1,141 million yen).
Liabilities
As of the end of second quarter ended August 31, 2018, total liabilities were 98,062 million yen (up 10.6% compared to the end of
the previous fiscal year).
Current liabilities were 43,168 million yen (up 35.3% compared to the end of the previous fiscal year) on increased short-termloans (up 2,862 million yen), and increased current portion of long-term loans payables (up12,000 million yen).
Non-current liabilities were 54,894 million yen (down 3.3% compared to the end of the previous fiscal year) on decreased
long-term loans (down 2,000 million yen).

3

Net assets
As of the end of second quarter ended August 31, 2018, total net assets were 40,157 million yen (down 3.2% compared to the endof the previous fiscal year) due to a decrease in retained earnings (down 953 million yen).

(3) Consolidated earnings forecast and other forward-looking information
There are no changes to our consolidated earnings forecasts for FY2019 from the figures released on October 9, 2018 in our“Revision of Earnings Forecast.”

4

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2018

(Millions of yen)
As of August 31, 2018

22,763
5,709
44,479
1,037
3,203
(239)
76,955

16,566
6,358
56,505
953
4,305
(65)
84,62432,602(11,445)
21,15664(15)
48
4,332(3,446)886
218
777
23,08834,439(12,141)
22,29849(16)
33
4,451(3,562)888
218
442
23,881

2,981
8,927
3,688
15,597

2,746
8,413
3,453
14,613

45
2,150
211
5,541
5,643
504
746
(304)
14,53953,225130,181

77
2,261
36
5,815
5,827
472
726
(116)
15,10053,596138,220

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
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
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Lease and guarantee deposits
Construction assistance fund receivables
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5

As of February 28, 2018

(Millions of yen)
As of August 31, 2018

14,3271,201–3,845
2,029
4,581
314
815871315
3,597
31,901

14,702
4,064
12,000
2,830
408
5,210
166
838
551
428
1,966
43,16852,680
499
2,008
1,008
395
191
56,784
88,686

50,680
441
2,105
926
386
352
54,894
98,062

4,157
4,032
36,373(3,947)40,615

4,157
4,032
35,420(3,947)
39,662

323
–
323
3551
41,494130,18123(34)(11)
3502
40,157138,220

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other provision
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Long-term guarantee deposited
Asset retirement obligations
Deferred tax liabilities
Other provision
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Deferred gains or losses on hedges
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

6

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, 2017
August 31, 2018
Net sales
135,468
143,937
Cost of sales
103,654
113,771
Gross profit
31,81330,165
Selling, general and administrative expenses
29,28529,719Operating profit
2,528
445
Non-operating incomeInterest income
2529
income of compensation for damage
2–
Other
111
Total non-operating income3931
Non-operating expenses
Interest expenses
410
342
Foreign exchange losses
6126
Share of loss of entities accounted for using equity
75
103
methodOther
42
11
Total non-operating expenses
535
584
Ordinary profit (loss)
2,032(106)
Extraordinary income
Gain on sales of non-current assets
0–
Subsidy income–
22
Total extraordinary income
022
Extraordinary losses
Loss on retirement of non-current assets
75
155
Provision of allowance for doubtful accounts
31–
Special retirement expenses
38–
Other
1040
Total extraordinary losses
156
196
Profit (loss) before income taxes
1,876(281)
Income taxes - current
1,080
247
Income taxes - deferred(175)
93
Total income taxes
905
340
Profit (loss)
970
(621)
Loss attributable to non-controlling interests
(151)
(23)
Profit (loss) attributable to owners of parent
1,121(598)7Consolidated statements of comprehensive income (cumulative)

970(Millions of yen)Six months ended
August 31, 2018
(621)

95(334)

424

–
100
1,071

(34)
(345)
(967)

1,214(918)

(143)

(48)

Six months ended
August 31, 2017
Profit (loss)
Other comprehensive income
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Deferred gains or losses on hedges
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

8Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2018

Six months ended
August 31, 2017
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors'
retirement benefits
Increase (decrease) in provision for merchandise
warranties
Interest and dividend income
Share of (profit) loss of entities accounted for using
equity method
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable- trade
Decrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Payments of loans receivableCollection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments of construction assistance fund receivables
Collection of construction assistance fundreceivables
Purchase of shares of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities

9

1,876
1,497
259

(281)
1,458
252

20(360)

134

22

(188)

–

37(319)

(25)

(29)

75

103

410
(2)
(0)
75

342
––
155

(867)

(162)

4,047
894

(12,361)(1,913)

142

700

(826)
(374)
7,186
25(368)(513)6,329

(901)
(367)
(13,662)29(341)(1,733)(15,707)(1,706)
(399)
(7)
–(0)
1(306)(2,060)
(269)
(12)
(33)
(12)
31
(357)

83

83

(374)

(491)

328

276

–
(182)
(2,565)(111)(11)(2,968)(Millions of yen)Six months ended
August 31, 2018

Six months ended
August 31, 2017
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Proceeds from issuance of subscription rights toshares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cashequivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

10(2,038)
12,039
(93)
(610)

2,862
10,000–
(355)

2–

(0)
9,298

–
12,50713(28)

13,076
14,337
27,413(6,197)22,763
16,566