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, 2019
(Based on Japanese GAAP)
January 14, 2020
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 14, 2020

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, 2019 (from March 1, 2019 to November 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended November 30, 2019
Nine months ended November 30, 2018

Millions of yen272,574
216,134

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
26.1
7,728 172.6
6,432 192.3
3,597 249.5
5.8
2,835 (45.5)
2,200 (50.9)
1,029 (62.6)

Earnings per share

Diluted earnings per share

Yen
35.48
10.15

Nine months ended November 30, 2019
Nine months ended November 30, 2018

Yen––(2) Consolidated financial position
Total assets
As of November 30, 2019
As of February 28, 2019

Net assets

Millions of yen
180,575
173,807

Equity ratio

Millions of yen
42,73740,312

Net assets per share%
23.4
22.9

Yen
417.10391.702. Cash dividends
Annual dividends per share

Year ended February 28, 2019Year ending February 29, 2020

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
5.50
0.60

Yen–

Yen
5.50

Yen
11.00

–

0.60

1.20

Year ending February 29, 2020 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 29, 2020 (from March 1, 2019 to February 29, 2020)
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
341,200
10.3
6,450
89.7
4,700 126.8
2,200 477.4
21.69

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended November 30, 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:No
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:
NoChanges 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 November 30, 2019106,888,000 shares As of February 28, 2019106,888,000 shares

Number of treasury shares at the end of the period
As of November 30, 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)
Nine months ended November 30, 2019

101,407,434 shares Nine months ended November 30, 2018

2101,407,530 shares

Analysis of Operating Results and Financial Position for the Second Quarter(1) Analysis of operating results
In the first nine months of the fiscal year under review (March 1, 2019 to November 30, 2019), retail car sales from all
directly managed stores in Japan totaled 101,576 (up 8.2% from the same term last year). In the previous term, retail car
sales per store and gross profit per unit fell due to changes in the price setting of used car sales and the store sales strategy.
However, in the current term, a range of improvement measures enhanced accuracy in retail price setting and increased thesales and profit of accessories, resulting in the recovery of both retail car sales per store and gross profit per unit. In addition,a certain rush in demand due to the implementation of higher consumption tax contributed to the recovery of retail car sales
per store.
SG&A expenses increased due to up-front store management expenses resulting from new store openings.
Associated with the syndicated loan agreement signed in the current term, an arrangement fee was paid to an arranger
financial institution, and the expenses were recorded in non-operating expenses and interest expenses.
With stores with low profits and capital efficiency closed according to the tightened criteria for the opening and closing of
directly managed stores, losses continued to increase pertaining to the disposal of non-current assets and store closings.
As a result of the above, the consolidated business results for the first nine months were net sales of 272,574 million yen (up26.1% from the same term of the previous year), operating profit of 7,728 million yen (up 172.6%), ordinary profit of 6,432
million yen (up 192.3%), and profit attributable to owners of parent of 3,597 million yen (up 249.5%).
Regional segment-specific earnings are as indicated below.
(i) JapanThe Japan segment recorded net sales of 208,026 million yen (up 18.6% from the same term of the previous year) andsegment income (operating profit) of 8,162 million yen (up 157.8%). Both retail car sales per directly managed store andgross profit per unit improved.
(ii) Australia
The Australia segment recorded net sales of 62,487 million yen (up 60.1% from the same term of the previous year) andsegment loss (operating loss) of 97 million yen (the same term of the previous year recorded operating loss of 144 millionyen). The new car dealer group acquired in October 2018 became our subsidiary in the previous consolidated fiscal year (itsfinancial results were consolidated for the period from October 1, 2018 to February 28, 2019). As a result, it contributed toan increase in net sales in the first nine months under review. The business performance of the subsidiary in Western
Australia improved due to an increase in retail car sales.

(2) Analysis of financial position[Assets]
As of the end of the first nine months of the fiscal year under review (March 1, 2019 to November 30, 2019), total assets
stood at 180,575 million yen (up 3.9% compared to the end of the previous fiscal year).
Current assets were 120,080 million yen (up 6.4% compared to the end of the previous fiscal year), mainly reflecting anincrease in cash and deposits (up 9,429 million yen).
Non-current assets were 60,495 million yen (down 0.7 % compared to the end of the previous fiscal year) partly due to a
decline in construction assistance fund receivable (down 393 million yen).
[Liabilities]
As of the end of the first nine months of the fiscal year under review (March 1, 2019 to November 30, 2019), total liabilities
were 137,837 million yen (up 3.3% compared to the end of the previous fiscal year).
Current liabilities were 52,414 million yen (down 13.6% compared to the end of the previous fiscal year), mainly reflecting
a decline in short-term loans payable (down 8,067 million yen).
Non-current liabilities were 85,423 million yen (up 17.3% compared to the end of the previous fiscal year) due to a rise inlong-term loans payable (up 12,180 million yen), among other factors.
[Net assets]
As of the end of the first nine months of the fiscal year under review (March 1, 2019 to November 30, 2019), total net assets
amounted to 42,737 million yen (up 6.0% compared to the end of the previous fiscal year) largely due to an increase inretained earnings (up 2,983 million yen).
(3) Consolidated earnings forecast and other forward-looking statements
The impact of reactionary decreases attributable to the consumption tax hike is subsiding. However, with respect to theconsolidated earnings forecast for the fiscal year ending February 29, 2020, we should continue to watch and fullyunderstand the effects of reactionary decreases on our business performance. Taking this into consideration, we will keep ourearnings forecasts unchanged from the figures released on October 4, 2019, in the press release titled “Revision of EarningsForecast.”3

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

(Millions of yen)
As of November 30, 2019

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

32,4795,791
76,904
5,065(160)
120,080

36,130(13,141)
22,988
167
(29)
137
4,333
(3,481)
852
218541
24,73836,840(13,479)
23,361
171
(20)
150
4,178
(3,423)754
218
275
24,7602,797
11,664
5,348
19,811

2,812
11,408
5,113
19,334

191
2,261
38
6,083
5,753
1,438
741
(116)
16,39260,942
173,807

182
2,260
13
6,054
5,360
1,940
669
(79)
16,40060,495
180,575

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 depreciationBuildings 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

4

As of February 28, 2019

(Millions of yen)
As of November 30, 2019

20,026
9,031
12,0003,809
312
11,177
249
820
562
507
2,144
60,642

18,390963
11,110
3,665
2,495
7,918
210
275
651
520
6,212
52,41468,023
432
2,279
1,363
561
191
72,852
133,494

80,204
454
2,674
1,254
643
191
85,423
137,837

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

4,157
4,032
38,825(3,947)43,067

(363)
(363)
3
588
40,312
173,807

(771)
(771)
3
437
42,737
180,575

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
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5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, 2018
November 30, 2019
Net sales
216,134
272,574
Cost of sales
167,691
216,480
Gross profit
48,44356,093
Selling, general and administrative expenses
45,60848,364
Operating profit
2,835
7,728
Non-operating income
Interest income
3034Interest on refund–18
Foreign exchange gains
15–
Other
16
22
Total non-operating income
6375
Non-operating expenses
Interest expenses
507
1,024
Foreign exchange losses–
249
Share of loss of entities accounted for using equity
177
77
methodOther
12
21
Total non-operating expenses
697
1,372
Ordinary profit
2,200
6,432
Extraordinary income
Gain on transfer of business–
57
Subsidy income
22
22
Other–1
Total extraordinary income
2281
Extraordinary losses
Loss on retirement of non-current assets
197526
Loss on closing of stores
24109
Settlement package–140
Loss on disaster
101
–
Other
26
28
Total extraordinary losses
348
805
Profit before income taxes
1,873
5,708
Income taxes - current
1,064
2,726
Income taxes - deferred
(158)
(621)
Total income taxes
905
2,105
Profit967
3,603
Profit (loss) attributable to non-controlling interests(61)
5
Profit attributable to owners of parent
1,029
3,597

6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 ofparentComprehensive income attributable tonon-controlling interests

7

Nine months ended
November 30, 2018
967

(Millions of yen)
Nine months ended
November 30, 2019
3,603

(107)

(661)

(5)

53(112)
855

(608)
2,994

921

3,069

(66)

(75)