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, 2023
(Based on Japanese GAAP)
October 13, 2023
Company name:

IDOM Inc.

Stock exchange listing: Tokyo
Stock code:
7599
Representative:
Inquiries:

URL

https://221616.com

President
Director CFO

Yusuke Hatori
Ryo Nishihata

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

October 16, 2023
November 7, 2023

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

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, 2023 (from March 1, 2023 to August 31, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet salesOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Six months ended August 31, 2023
203,696(9.7)
7,098 (17.6)
6,918 (16.5)
4,823 (35.8)
Six months ended August 31, 2022
225,478
(1.0)
8,616
(8.7)
8,280
(8.1)
7,516
41.5
Earnings per share

Diluted earnings per share

Yen
48.04
74.86

Six months ended August 31, 2023
Six months ended August 31, 2022

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
161,943
173,293

As of August 31, 2023
As of February 28, 2023

Equity ratio

Millions of yen
65,01862,702

Net assets per share%
39.7
35.8

Yen
641.00618.34

2. Cash dividends
Annual dividends per share

Year ended February 28, 2023
Year ending February 29, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
16.20
14.41

Yen–

Yen
26.30

Yen
42.50

–

21.39

35.80

Year ending February 29, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)
Net sales
Full year

Millions of yen
400,000

Percentages 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
(4.0)
19,0001.7
18,5001.9
12,000 (15.5)
119.51

1

4. Notes(1) Changes in significant subsidiaries during the six months ended August 31, 2023
(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:

No
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, 2023

106,888,000 shares As of February 28, 2023

106,888,000 shares

Number of treasury shares at the end of the period
As of August 31, 2023

6,480,651 shares As of February 28, 2023

6,480,651 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended August 31, 2023

100,407,349 shares Six months ended August 31, 2022

2100,407,350 shares

1.

Qualitative Information on Quarterly Financial Results(1) Analysis of operating results
In the Second quarter of the fiscal year under review (March 1 to August 31, 2023) (the “first half”), retail unit sales at directly managed storesin Japan were 73,777, a record high for first half sales. This mainly owed to the commencement of operation of large stores opened in theprevious fiscal year and robust retail unit sales at existing large stores. Gross profit per unit on a retail basis increased approximately 20,000 yen
from a year ago, to 380,000 yen, attributable to the curbing of discounts on vehicle prices by head office.
Consolidated operating profit fell 1,518 million yen from the previous fiscal year, when the results at the Australian subsidiary wereconsolidated for three months (March to May, 2022 before the completion of an equity share transfer in July 2022).
Consolidated selling, general and administrative expenses decreased year on year. The decrease was primarily due to the transfer of equity in
the Australian subsidiary. Meanwhile, selling, general and administrative expenses at the parent company increased from a year ago. The
increase mainly reflected rises in personnel costs due to higher incentives, an increase in rent expenses on land and buildings due to therelocation of head office and an increase in the number of large stores. It was also attributable to increases in the number of limited-term
employees in preparation for the opening of large stores in the latter half of the fiscal year, which led to an increase in personnel cost andrecruitment fees.
As a result of the above, the consolidated business results for the first six months under review were net sales of 203,696 million yen (down
9.7% year on year), operating profit of 7,098 million yen (down 17.6%), ordinary profit of 6,918 million yen (down 16.5%), and profit
attributable to owners of parent of 4,823 million yen (down 35.8%).
Regional segment-specific earnings are as indicated below:
I. JapanThe results of the Japan segment were net sales of 202,301 million yen (up 12.5% year on year) and segment profit (operating profit) of 7,025
million yen (down 4.9% year on year). The Japan segment recorded higher revenue and lower profits, primarily due to increases in retail unit
sales and SG&A expenses.
II. Others
The results of the Other (Differences) segment were net sales of 1,395million yen (up 27.0% year on year) and segment profit (operatingprofit) of 49 million yen (up 80.7% year on year).
The Australia segment has been excluded from the scope of consolidation, because all equity shares in the Australian subsidiary were sold in theprevious consolidated fiscal year.
(2) Analysis of financial position
AssetsTotal assets as of the end of the first six months ended August 31, 2023 were 161,943 million yen (down 6.5% compared to the end of theprevious fiscal year).
Current assets were 118,188 million yen (down 10.1% compared to the end of the previous fiscal year), mainly reflecting decreases in cash anddeposits (down 6,809 million yen) and merchandise (down 8,130 million yen).
Non-current assets stood at 43,755 million yen (up 4.6% from the end of the previous fiscal year), due primarily to an increase in constructionin progress (up 1,743 million yen), despite a decrease in buildings and structures (down 481 million yen).
Liabilities
Total liabilities as of the end of the first six months ended August 31, 2023 were 96,924 million yen (down 12.4% compared to the end of theprevious fiscal year).
Current liabilities totaled 61,543 million yen (down 4.1% from the end of the previous fiscal year) due to a fall in the current portion of longterm borrowings (down 3,700 million yen) and contract liabilities (down 1,924 million yen from the end of the previous fiscal year).
Non-current liabilities were 35,381 million yen (down 23.8% compared to the end of the previous fiscal year) due to a fall in long-termborrowings (down 11,300 million yen), among other factors.
Net assets
Total net assets as of the end of the first six months ended August 31, 2023 were 65,018 million yen (up 3.7% compared to the end of theprevious fiscal year) due chiefly to an increase in retained earnings (up 2,182 million yen).

3

(3) Consolidated earnings forecast and other forward-looking statements
Looking at the consolidated earnings forecasts for the fiscal year ending February 29, 2024, there are no changes in the figures that werepresented in the “Summary of Consolidated Financial Results for the Fiscal Year Ending February 28, 2023 (Japanese GAAP)" announced on
April 14, 2023.

4

Quarterly consolidated financial statements
Consolidated balance sheets
As of February 28, 2023

(Millions of yen)
As of August 31, 2023

37,473
3,927
84,432
6,173(528)
131,478

30,664
6,359
76,3015,480(617)
118,188

41,306(16,873)
24,433236(148)
88
5,077(3,362)
1,715
136
67–
26,441

41,601(17,649)
23,951236(171)65
5,258(3,530)
1,727
136
1,811
251
27,943

1,300
86
2
1,389

1,334
82
2
1,41802976
5,045
3,955
4,435
449
(6)
13,984
41,815173,293

0
29
1,258
5,327
3,740
3,605
440
(9)
14,39243,755
161,943

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
Other
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
Leasehold 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, 2023

(Millions of yen)
As of August 31, 2023

4,822
24,145
3,812
864
25,336
309
897
342
3,635
64,165

4,613
20,445
3,664
1,582
23,412
247
1,199
90
6,289
61,54343,000
599
2,643
183
46,426
110,591

31,700
640
2,700
340
35,381
96,924

4,157
5,250
56,738(4,344)61,801

4,157
5,250
58,920(4,344)
63,984

284
284
147
468
62,702
173,293

376
376
255
402
65,018161,943

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Deposits received
Provision for bonuses
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term guarantee deposits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
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 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, 2022
August 31, 2023
Net sales
225,478
203,696
Cost of sales
187,209
168,792
Gross profit
38,26934,903
Selling, general and administrative expenses
29,65227,805
Operating profit
8,616
7,098
Non-operating income
Interest income
2469
Subsidy income
25–
Other
37
26
Total non-operating income
8796
Non-operating expenses
Interest expenses
374
170
Foreign exchange losses
967
Other38
37
Total non-operating expenses
422275Ordinary profit
8,280
6,918
Extraordinary income
Gain on sale of non-current assets
54–
Gain on sale of shares of subsidiaries and associates
795–
Gain on liquidation of subsidiaries
19–
Subsidy income
91
83
Other
16
4
Total extraordinary income
976
87
Extraordinary losses
Loss on retirement of non-current assets
51
18
Information security expenses
–
131
Other
24
1
Total extraordinary losses
76
152
Profit before income taxes
9,181
6,853
Income taxes - current
1,491
1,265
Income taxes - deferred
41
830
Total income taxes
1,532
2,096Profit
7,648
4,757
Profit (loss) attributable to non-controlling interests
132(66)
Profit attributable to owners of parent
7,516
4,823

7

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

8

Six months ended
August 31, 2022
7,648(Millions of yen)Six months ended
August 31, 2023
4,757

310
310
7,9599292
4,849

7,639

4,915

320(66)

Consolidated statements of cash flows(Millions of yen)Six months ended
August 31, 2023

Six months ended
August 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase in provision for merchandise warranties
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Subsidy income
Share-based payment expenses
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sale of non-current assets
Loss on retirement of non-current assets
Loss (gain) on liquidation of subsidiaries
Information security expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in accounts receivable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in refund liability
Increase (decrease) in deposits receivedIncrease (decrease) in accrued expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Subsidies received
Information security expenses paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Loan advances
Proceeds from collection of loans receivable
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guaranteedeposits
Payments of construction assistance fund receivables
Proceeds from collection of construction assistancefund receivables
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Proceeds from liquidation of subsidiaries
Other, net
Net cash provided by (used in) investing activities

9

9,181
1,322
106
67
(403)
(884)
(24)
374
377
(116)
–

6,853
1,269
391
301
–
(69)
170
12(83)
107

(795)

–

(54)
51
(19)
–
2,062
(6,296)–18–
131(4,381)
8,174

96

–

808
1,157
441
(665)
1,261
(38)
480
1,841
10,33324(369)(2,786)
91
–
7,292

(101)
2,190
(212)
(263)
130
(62)
233
(209)
14,30569(168)(593)
83(131)
13,564(3,558)
141
(213)
(10)
(2,823)227(519)(2,201)
–
(278)
(16)
(468)
370
(300)

138

19(101)

–

223

215

8,597

–

119
(0)
2,220

–
(11)
(2,671)

(Millions of yen)Six months ended
August 31, 2023

Six months ended
August 31, 2022
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury sharesDividends paid
Proceeds from share issuance to non-controllingshareholders
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

10–
(169)
(0)
(231)

5,000
(20,000)–(2,638)

1,387

–

986

(17,638)

306

(63)

10,80645,67056,477(6,809)37,47330,664