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 Three Months Ended May 31, 2019
(Based on Japanese GAAP)
July 12, 2019
Company name:
IDOM Inc.
Stock exchange listing: Tokyo
Stock code:7599
URL https://221616.com
Representative:
President
Inquiries:
General Manager, Finance & IR Division
Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

Yusuke Hatori
Masayuki Matsumoto
July 16, 2019–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:YesNoTEL 03-5208-5503(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended May 31, 2019 (from March 1, 2019 to May 31, 2019)(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, 2019
90,20626.3
1,510 298.6
959 826.0
447–
Three months ended May 31, 2018
71,4110.4
378 (69.5)
103 (88.5)(146)–
Earnings per share

Diluted earnings per share

Yen
4.41
(1.45)

Three months ended May 31, 2019
Three months ended May 31, 2018

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
177,355
173,927

As of May 31, 2019
As of February 28, 2019

Equity ratio

Millions of yen
39,65640,432

Net assets per share%
22.1
22.9

Yen
386.71392.88

2. Cash dividends
1st quarter-end

Annual dividends per share
2nd quarter-end
3rd quarter-end
Fiscal year-end

Yen––Year ended February 28, 2019Year ending February 29, 2020
Year ending February 29, 2020 (Forecast)

Total

Yen
5.50

Yen–

Yen
5.50

Yen
11.00

0.60

–

0.60

1.20

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)

Net sales
Millions of yen
Six months ending
August 31, 2019
Full yearPercentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen

162,000

12.5

1,850

315.0

1,100–210–

2.07

324,000

4.7

3,700

8.8

2,200

6.1

420

10.0

4.14

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2019(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

No
No
No

(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, 2019106,888,000 shares As of February 28, 2019106,888,000 shares

Number of treasury shares at the end of the period
As of May 31, 2019

5,480,571 shares As of February 28, 2019

5,480,531 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2019

101,407,445 shares Three months ended May 31, 20182

101,407,530 shares

Analysis of Operating Results and Financial Position for the First Quarter(1) Analysis of operating results
In the first quarter of the fiscal year under review (March 1, 2019 to May 31, 2019) retail car sales from all directly managed
stores totaled 34,114 (up 6.9% from the same term last year). In the previous term, retail car sales per store and gross profit perunit fell due to changes in price setting of used car sales and sales strategy. However, those indicators have recovered steadily inthe current quarter under review.
SG&A expenses increased due to up-front store management expenses resulting from new store openings and up-front
personnel costs mainly for the hiring of new graduates.
Associated with the conclusion of the syndicated loan agreement specified in “Conclusion of a Syndicated Loan Agreement”
disclosed on March 18, 2019, we paid an arrangement fee to our arranger financial institution and the expenses were accounted forwithin non-operating expenses/interest expenses in a lump.
IDOM Automotive Essendon Pty Ltd., a newly established subsidiary of IDOM Automotive Group Pty Ltd, our wholly-owned
Australian holding company, acquired five companies of a new, Melbourne-based car dealer group in Victoria, Australia in
October 2018. We made these five companies our subsidiary in the previous consolidated fiscal year.
As a result of the above, consolidated business results for the first quarter were net sales of 90,206 million yen (up 26.3% fromthe same term last year), operating income of 1,510 million yen (up 298.6%), ordinary income of 959 million yen (up 826.0%),
and profit attributable to owners of parent of 447 million yen (the same term last year experienced a loss of 146 million yen).
Regional segment-specific earnings are as indicated below:
I. Japan
The Japan segment resulted in net sales of 70,949 million yen (up 21.1% from the same term last year) and segment income(operating income) of 1,827 million yen (up 321.1%). An increase in retail car sales from all directly managed stores, including theoperation of newly opened stores, resulted in increases in both net sales and operating income.
II. Australia
The Australia segment recorded net sales of 18,830 million yen (up 51.1% from the same term last year) and segment loss
(operating loss) of 144 million yen (the same term last year was segment income (operating income) of 62 million yen). The new
car dealer group acquired in October 2018 became our subsidiary in the previous consolidated fiscal year (its financial results wereconsolidated for a period from October 1, 2018 to February 28, 2019). As a result, it contributed substantially to an increase in net
sales in the first quarter under review. The subsidiary in Western Australia recorded lower operating income. Up-front expenses,including new business expenses, were generated at the holding company.
(2) Analysis of financial position
Assets
As of the end of first quarter ended May 31, 2019, total assets were 177,355 million yen (up 2.0% compared to the end of theprevious fiscal year).
Current assets were 116,888 million yen (up 3.6% compared to the end of the previous fiscal year) on increased cash anddeposits (up 11,542 million yen).
Non-current assets were 60,467 million yen (down 1.0% compared to the end of the previous fiscal year) on decreased goodwill(down 777 million yen) offsetting increased deferred tax assets (up 394 million yen).
Liabilities
As of the end of first quarter ended May 31, 2019, total liabilities were 137,699 million yen (up 3.1% compared to the end of theprevious fiscal year).
Current liabilities were 53,446 million yen (down 11.9% compared to the end of the previous fiscal year) on decreased
short-term loans payable (down 8,049 million yen).
Non-current liabilities were 84,253 million yen (up 15.6% compared to the end of the previous fiscal year) on increased
long-term loans payable (up 11,342 million yen).
Net assets
As of the end of first quarter ended May 31, 2019, total net assets were 39,656 million yen (down 1.9% compared to the end of
the previous fiscal year) due to a decrease in retained earnings (down 76 million yen).

3

(3) Consolidated earnings forecast and other forward-looking statements
There are no changes to our consolidated earnings forecasts for FY2020 from the figures released on April 12, 2019, in our“Summary of Consolidated Financial Results for the Year Ended February 28, 2019 (Based on Japanese GAAP).” Thesubsidiary in Western Australia recorded lower operating income in the first quarter under review but this was anticipated in thebeginning, and improvements in financial results in the second quarter and onward are expected.

4

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2019

(Millions of yen)
As of May 31, 2019

23,0496,774
74,0909,043(93)
112,865

34,591
5,646
72,172
4,590(113)
116,888

36,130(13,141)
22,988
167
(29)
137
4,333
(3,481)
852
218
541
24,73836,456(13,263)
23,193
171
(33)
138
4,293
(3,486)806
218
322
24,6792,797
13,832
3,301
19,931

2,824
13,054
3,095
18,975

191
2,261
38
6,083
5,753
1,438
741
(116)
16,392
61,062173,927

184
2,261
180
6,061
5,687
1,833
721
(116)
16,81260,467
177,355

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
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 assetsSoftware
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, 2019

(Millions of yen)
As of May 31, 2019

20,026
9,031
3,809
12,000312
11,177
249
820
562
507
2,144
60,642

18,261981
3,941
12,000363
11,254
353
101
616
520
5,05153,446

68,023
432
2,279
1,363
561
191
72,852
133,494

79,365
417
2,320
1,350
572
227
84,253
137,699

4,157
4,032
35,842(3,947)40,084

4,157
4,032
35,766(3,947)40,008

(243)
(243)
3
588
40,432
173,927

(793)
(793)
3437
39,656
177,355

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Accounts payable - other
Current portion of long-term loans payable
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
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets6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, 2018
May 31, 2019
Net sales
71,411
90,206
Cost of sales
56,104
72,521Gross profit
15,306
17,685
Selling, general and administrative expenses
14,927
16,174
Operating profit
378
1,510
Non-operating income
Interest income
1310Interest on refund–
12
Other
19
19
Total non-operating income
3243
Non-operating expenses
Interest expenses
167
340
Foreign exchange losses
67170
Share of loss of entities accounted for using equity
6483
methodOther
80
Total non-operating expenses
308
594
Ordinary profit
103959
Extraordinary income
Subsidy income
–
22
Other
1–
Total extraordinary income
122
Extraordinary losses
Loss on retirement of non-current assets
124
184
Settlement package
–60
Other
40
–
Total extraordinary losses
164
244
Profit (loss) before income taxes(59)
736
Income taxes - current
249
774
Income taxes - deferred
(146)
(436)
Total income taxes
103
338
Profit (loss)
(162)
398
Loss attributable to non-controlling interests
(15)
(48)
Profit (loss) attributable to owners of parent
(146)
447

7

Consolidated statements of comprehensive income (cumulative)

Profit (loss)
Other 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

Three months ended
May 31, 2018
(162)

(Millions of yen)Three months ended
May 31, 2019
398

(185)

(697)

10

45(175)
(337)

(651)
(253)

(313)

(102)

(24)

(150)