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, 2016
(Based on Japanese GAAP)
October 13, 2016
Company name:
IDOM Inc.
Stock exchange listing: Tokyo
Stock code:7599
URL http://221616.com
Representative:
President
Inquiries:
General Manager, Finance IR Division
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:

Yusuke Hatori
Masayuki Matsumoto
TEL 03-5208-5503
October 13, 2016
November 9, 2016
Yes
Yes
(for analysts and institutional investors)

Holding of quarterly financial results meeting:(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended August 31, 2016 (from March 1, 2016 to August 31, 2016)(1) Consolidated financial results (cumulative)
Percentages indicate year-on-year changes
Net sales
Six months ended August 31, 2016
Six months ended August 31, 2015

Millions of yen
124,244
95,024

Operating income% Millions of yen
30.8
2,172
27.3
4,079

Net income per share% Millions of yen(46.8)
2,020
49.6
4,043

Net income% Millions of yen(50.0)
1,102
46.6
2,563

%
(57.0)
55.8

Diluted earnings per share

Yen
10.87
25.28

Six months ended August 31, 2016
Six months ended August 31, 2015

Ordinary income

Yen––(2) Consolidated financial position
Total assets
As of August 31, 2016
As of February 29, 2016

Net assets

Millions of yen107,754
94,211Equity ratio

Millions of yen
38,27938,245

Net assets per share%
34.6
39.4

Yen
367.35365.98

2. Cash dividends
Annual dividends per share

Year ended February 29, 2016
Year ending February 28, 2017

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
7.50
6.00

Yen–

Yen
5.00

Yen
12.50

–

6.00

12.00

Year ending February 28, 2017 (Forecast)Total

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
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
243,500
15.9
7,600
0.8
7,100
3.9
4,100
(0.3)
40.43

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2016(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
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
No
Restatement 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, 2016

106,888,000 shares As of February 29, 2016

106,888,000 shares

Number of treasury shares at the end of the period
As of August 31, 2016

5,480,350 shares As of February 29, 2016

5,480,300 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2016

101,407,682 shares Six months ended August 31, 2015

2101,407,812 shares

Qualitative information on settlement of accounts for the first six months(1) Qualitative information on consolidated operating results
In the first half of the fiscal year under review (March 1 to August 31, 2016), retail car sales volume at all directly managed stores increased by33.5% from the same term last year to 45,421 cars. The increase was supported by growth in both the number of display sales stores and thenumber of cars handled per store.
On the other hand, amid a prolonged slump in the new car market, the total number of cars purchased at directly operated stores remained levelwith the same term last year. The number of customers visiting stores declined, and the Company responded by increasing its advertisingexpenses, mainly for Internet advertising.
Selling, general and administrative expenses increased, mainly due to increases in advertising expenses as mentioned above, personnel expenses
associated with an increase in staff numbers, and expenses related to store operations associated with an increase in the number of display sales
stores.
As a result of the above, consolidated business results for the first half were as follows: consolidated Net sales rose by 30.8% from the same term
last year to 124,244 million yen, operating income declined by 46.8% from the same term last year to 2,172 million yen, ordinary income
declined by 50.0% from the same term last year to 2,020 million yen, and profit attributable to owners of parent declined by 57.0% from thesame term last year to 1,102 million yen.
Operating results by segment were as follows.
I. Domestic BusinessIn the Domestic Business, sales rose by 7.4% from the same term last year to 101,092 million yen and segment income (operating income)declined by 43.6% from the same term last year to 2,297 million yen. While sales rose on an increase in retail car sales volume, profit declined as
the growth was absorbed by an increase in SG&A expenses amid a prolonged slump in the new car market.
II. Overseas Business
Australia BusinessIn the Australia Business, sales came to 22,281 million yen and segment income (operating income) came to 61 million yen. The new car market
in Western Australia declined from the same term last year. Furthermore, since the subsidiaries conducting the Australia Business have been
newly included within the scope of consolidation since the third quarter of the previous fiscal year, previous fiscal year comparisons are notdisclosed.
(2) Qualitative information on consolidated financial position
AssetsTotal assets at August 31, 2016 were 107,754 million yen, an increase of 14.4% from February 29, 2016.
Current assets were 60,586 million yen, an increase of 23.5% from February 29, 2016. This mainly reflected a 10,909 million yen increase in
cash and deposits and a 963 million yen increase in merchandise, which was partially offset by a 1,000 million yen decrease in notes andaccounts receivable-trade.
Non-current assets were 47,167 million yen, an increase of 4.5% from February 29, 2016. This mainly reflected a 1,055 million yen increase insoftware and a 1,048 million yen increase in buildings and structures.
Liabilities
Total liabilities at August 31, 2016 were 69,474 million yen, up 24.1% from February 29, 2016.
Current liabilities were 24,595 million yen, a decrease of 14.0% from February 29, 2016. This mainly reflected a 2,021 million yen decrease in
short-term loans payable and a 1,782 million yen decrease in accounts payable-trade.
Non-current liabilities were 44,879 million yen, an increase of 64.0% from February 29, 2016. This mainly reflected a 17,951 million yen
increase in Long-term loans payable.
Net assets
Net assets at August 31, 2016 were 38,279 million yen, an increase of 0.1% from February 29, 2016. This mainly reflected a 594 million yen
increase in Retained earnings.
(3) Outlook for the fiscal year ending February 28, 2017
The Company has made no revision to its full-year and half-year consolidated results forecasts for the fiscal year ending February 28, 2017
disclosed in the press release dated July 13, 2016, “Gulliver Announces Revisions to Operating Results Forecasts”

3Quarterly consolidated financial statementsConsolidated balance sheets
As ofAssets
Current 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
SoftwareGoodwill
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
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4February 29, 2016

As of(Millions of yen)August 31, 2016

9,149
5,192
31,848
778
2,159
(54)
49,07420,058
4,192
32,812
797
2,782
(56)
60,58626,000(8,564)
17,435
435
(180)
255
3,882(2,874)
1,007
218
826
19,74327,670(9,186)18,484
355
(107)
247
3,952
(2,877)
1,074
218
662
20,687

1,941
9,597
3,974
15,513

2,996
9,029
3,709
15,735

13
45
395
4,565
4,304
274
489
(209)
9,879
45,136
94,211

30
45
383
4,878
4,824
325
492(236)
10,74447,167
107,754

As ofLiabilities
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
Provision for directors' retirement benefits
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
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5February 29, 2016

As of(Millions of yen)August 31, 2016

14,102
2,045
79
3,064
1,778
3,026
475
459
1,076
113
2,378
28,60012,320
24
–
3,201
841
3,167
311
706
1,103
144
2,774
24,59522,851
651
540
1,653
1,086
388
194
27,36555,96540,802
575
181
1,747
1,030
388
151
44,87969,474

4,157
4,032
32,869(3,947)
37,111

4,157
4,032
33,464(3,947)37,7061
1
1,131
38,245
94,211(454)
(454)
1,027
38,279107,754

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, 2015
August 31, 2016
Net sales
95,024
124,244
Cost of sales
71,573
94,539Gross profit
23,45029,704
Selling, general and administrative expenses
19,371
27,532
Operating income
4,079
2,172
Non-operating income
Interest income
1319
Insurance premiums refunded cancellation
11–
Reversal of allowance for doubtful accounts–
0income of compensation for damage–36
Other30
107
Total non-operating income
55
163
Non-operating expenses
Interest expenses
43235
Provision of allowance for doubtful accounts0–
www15–
Foreign exchange losses
733
Other
2246
Total non-operating expenses
90315
Ordinary income
4,043
2,020
Extraordinary income
Gain on sales of non-current assets–
11
Gain on liquidation of subsidiaries
3–
Other
0–
Total extraordinary income
311
Extraordinary losses
Loss on retirement of non-current assets
25
104
Provision of allowance for doubtful accounts–
27
Directors' retirement benefits
–
110
Other
00
Total extraordinary losses
25242
Income before income taxes and minority interests
4,021
1,789
Income taxes - current
1,461
820
Income taxes - deferred(3)(82)
Total income taxes
1,458
737
Net income
2,563
1,051
Loss attributable to non-controlling interests–(51)
Profit attributable to owners of parent
2,563
1,1026

Consolidated statements of comprehensive income (cumulative)

Net income
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

7

Six months ended
August 31, 2015
2,563

(Millions of yen)Six months ended
August 31, 2016
1,051

44
2,567(509)
(509)
542

2,567646–(104)

Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2016

Six months ended
August 31, 2015
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtfulaccounts
Increase (decrease) in provision for bonusesIncrease (decrease) in provision for directors'
retirement benefits
Increase in provision for merchandise warranties
Interest and dividend income
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- tradeDecrease (increase) in inventories
Increase (decrease) in accrued consumption taxes
Increase (decrease) in notes and accounts payable trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paidNet 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 shares of subsidiaries and associates
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
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash provided by (used in) investing activities

8

4,021
1,036
50

1,789
1,412
245

232

176

246

16(359)

(251)
(13)
43–
–
25

27(19)
235
15(10)
104

597

1,090

886
645

(1,332)(2)(675)(1,413)

(327)
6,235
13(43)
(195)
6,009

375
2,435
19(262)(1,802)389(2,432)
(520)
–
(5)
–
(148)
7(357)(2,548)(1,380)
(11)
–
(18)
(3)
2(356)

36

38(444)

(700)

149

176

(5)
12(361)(4,069)––7(4,793)(Millions of yen)Six months ended
August 31, 2016

Six months ended
August 31, 2015
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
Redemption of bonds
Cash dividends paid
Other, net
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 period9(150)
12,000(4,656)
(495)
(759)
(0)
5,938

(2,021)
18,000
(116)
–
(507)
(0)
15,354

0

(41)

7,878
4,863
12,741

10,9099,122
20,031