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 Nine Months Ended November 30, 2018
(Based on Japanese GAAP)
January 11, 2019
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
January 15, 2019

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

Holding of quarterly financial results meeting:

NoTEL

03-5208-5503(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended November 30, 2018 (from March 1, 2018 to November 30, 2018)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended November 30, 2018
Nine months ended November 30, 2017

Millions of yen216,134204,338

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
5.8
2,835 (45.5)
2,200 (50.9)
1,029 (62.6)
7.0
5,204
29.4
4,481
14.5
2,749
25.5

Earnings per share

Diluted earnings per share

Yen
10.15
27.11

Nine months ended November 30, 2018
Nine months ended November 30, 2017

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2018
As of February 28, 2018

Net assets

Millions of yen164,317
130,181

Equity ratio

Millions of yen
41,444
41,494

Net assets per share%
24.9
31.4

Yen
403.77403.71

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 nine months ended November 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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 November 30, 2018106,888,000 shares As of February 28, 2018106,888,000 sharesNumber of treasury shares at the end of the period
As of November 30, 2018

5,480,471 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)
Nine months ended November 30, 2018

101,407,530 shares Nine months ended November 30, 20172

101,407,608 shares

Analysis of Operating Results and Financial Position for the Third Quarter(1) Analysis of consolidated operating results
In the third quarter of the fiscal year under review (March 1, 2018 to November 30, 2018) retail car sales from all directly
managed stores totaled 93,874 units, up 0.8% from the same term last year. Sales per store and gross profit per unit fell due tochanges in the pricing structure and sales strategy, but recovered after the second quarter.
In SG&A expenses, store management expenses increased owing to a rise in the number of stores.
The Company’s Western Australian subsidiary posted improved results on the back of growth in unit sales, resulting in positive
operating income before the deduction of amortization of goodwill.
IDOM Automotive Essendon Pty Ltd, a newly established subsidiary of IDOM Automotive Group Pty Ltd (IDOM’s whollyowned Australian holding company) acquired five companies under the Andrew & Wallis Motor Group, a Melbourne-based new
car dealership group, in October 2018. The IDOM Group recognizes those companies in its scope of consolidation. However, only
the balance sheets are consolidated as of the end of the third quarter. Accordingly, those companies have not yet affected theconsolidated financial results except for costs incurred in relation to the acquisition.
As a result of the above, in the third quarter consolidated net sales were 216,134 million yen (up 5.8% from the same term lastyear), operating income was 2,835 million yen (down 45.5%), ordinary income was 2,200 million yen (down 50.9%), and net
income attributable to owners of parent was 1,029 million yen (down 62.6%).
Regional segment-specific earnings are indicated below.
I. Japan
The Japan segment posted sales of 175,361 million yen (up 3.2% from the same term last year) and segment income (operatingincome) of 3,165 million yen (down 46.7%). The total number of retail car sales at directly managed stores was unchanged year onyear. Although the average selling price increased, retail unit sales and gross profit per vehicle declined.
II. Australia
The Australia segment recorded sales of 39,036 million yen (up 18.2% from the same term last year) and a segment loss (operatingloss) of 144 million yen (a loss of 473 million yen in the same period of the preceding year). Although the new car market
remained sluggish, performance at the Western Australian subsidiary improved on the back of higher unit sales, resulting inpositive operating income before the deduction of amortization of goodwill. On the other hand, the subsidiary which acts as aholding company in Australia, recorded costs incurred in relation to the acquisition of a Melbourne-based dealership group as wellas up-front expenditures for new business.

(2) Analysis of financial position
Assets
As of the end of third quarter ended November 30, 2018, total assets were 164,317 million yen (up 26.2% compared to the end of
the previous fiscal year, February 28, 2018).
Current assets were 104,843 million yen (up 36.2% compared to the end of the previous fiscal year) due to increased inventory (up30,698 million yen).
Non-current assets were 59,473 million yen (up 11.7 % compared to the end of the previous fiscal year) as a result of increased
goodwill (up 4,679 million yen).
Liabilities
As of the end of third quarter ended November 30, 2018, total liabilities were 122,873 million yen (up 38.5% compared to the endof the previous fiscal year).
3Current liabilities were 64,384 million yen (up 101.8% compared to the end of the previous fiscal year) as a result of higher
short-term loans (up 14,878 million yen).
Non-current liabilities were 58,488 million yen (up 3.0% compared to the end of the previous fiscal year) due to a rise in long-termloans (up 1,414 million yen).
Net assets
As of the end of third quarter ended November 30, 2018, total net assets were 41,444 million yen (down 0.1% compared to the endof the previous fiscal year) due to a decrease in the foreign currency translation adjustment (down 110 million yen).

(3) Consolidated earnings forecast and other forward-looking statements
Our consolidated earnings forecasts for FY2019 remain unchanged from the figures released on October 12, 2018 in our“Summary of Consolidated Financial Results for the Six Months Ended August 31, 2018.”
Notes Regarding Changes in Consolidation
IDOM Automotive Essendon Pty Ltd and five subsidiaries were consolidated at the end of the third quarter. IDOM Automotive
Essendon Pty Ltd is a specified company due to its significance.

4

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

(Millions of yen)
As of November 30, 2018

22,763
5,709
44,4791,037
3,203(239)76,955

14,665
7,664
75,1781,160
6,260(85)104,843

32,602(11,445)
21,15664(15)
48
4,332(3,446)886
218
777
23,08835,314(12,543)
22,77043(17)
25
4,225(3,348)877
218
366
24,258

2,981
8,927
3,688
15,5972,783
13,607
3,507
19,898

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

194
2,261
38
5,990
5,748
488
712
(116)
15,31759,473
164,317

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
OtherAllowance 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 November 30, 2018

14,327
1,201
–
3,845
2,029
4,581
314
815
871
315
3,597
31,901

23,24016,08012,000
2,408
202
5,457
270
207
561
486
3,468
64,384

52,680
499
2,008
1,008
395
191
56,784
88,68654,094435
2,134941
543
338
58,488122,873

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

4,157
4,032
36,489(3,947)40,731

323
323
3551
41,494130,181

213
213
3494
41,444
164,317

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
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)
Nine months ended
Nine months ended
November 30, 2017
November 30, 2018
Net sales
204,338
216,134
Cost of sales
155,485
167,691
Gross profit
48,852
48,443
Selling, general and administrative expenses
43,64845,608Operating profit
5,204
2,835
Non-operating income
Interest income
3830
income of compensation for damage
7–
Foreign exchange gains
–
15
Other
23
16
Total non-operating income
7063
Non-operating expenses
Interest expenses
570
507
Foreign exchange losses
76–
Share of loss of entities accounted for using equity
91
177
methodOther55
12Total non-operating expenses
793
697
Ordinary profit
4,481
2,200
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
87
197
Provision of allowance for doubtful accounts
76–
Special retirement expenses
41–
Loss on disaster–
101
Other
33
50
Total extraordinary losses
239
348
Profit before income taxes
4,242
1,873
Income taxes - current
2,100
1,064
Income taxes - deferred(376)(158)
Total income taxes
1,724905
Profit2,517
967
Loss attributable to non-controlling interests
(231)
(61)
Profit attributable to owners of parent
2,749
1,029

7Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable tonon-controlling interests

8

Nine months ended
November 30, 2017
2,517

(Millions of yen)
Nine months ended
November 30, 2018
967

(177)

(107)

16

(5)

(161)
2,356

(112)
855

2,601

921

(244)

(66)