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, 2017
(Based on Japanese GAAP)
July 12, 2017
Company name:
IDOM Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

7599
President

URL

http://221616.com
Yusuke Hatori

Inquiries:
General Manager, Finance IR Division
Scheduled date to file Quarterly Securities Report:Masayuki Matsumoto
July 12, 2017

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 three months ended May 31, 2017 (from March 1, 2017 to May 31, 2017)(1) Consolidated operating results (cumulative)
Net sales
Three months ended May 31, 2017
Three months ended May 31, 2016

Millions of yen
71,13066,192

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
owners of parent% Millions of yen% Millions of yen% Millions of yen%
7.5
1,243(0.2)
903 (23.0)
457 (37.5)
31.1
1,245 (38.9)
1,173 (41.9)732 (41.3)

Earnings per share

Diluted earnings per share
Yen
4.51
7.22

Three months ended May 31, 2017
Three months ended May 31, 2016

Yen
4.51
–(2) Consolidated financial position
Total assets
As of May 31, 2017
As of February 28, 2017

Net assets

Millions of yen
122,871
114,047

Equity ratio

Millions of yen
39,09739,581

Net assets per share
%
31.1
33.9

Yen
377.00381.05

2. Cash dividends
Annual dividends per share

Year ended February 28, 2017
Year ending February 28, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
––

Yen
6.00

Yen–

Yen
6.00

Yen
12.00

3.50

–

3.50

7.00

Year ending February 28, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending February 28, 2018 (from March 1, 2017 to February 28, 2018)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
127,200
2.4
2,100(3.3)
1,750 (13.4)
1,000(9.3)
9.86
August 31, 2017
Full year
259,500
3.2
5,500
22.3
4,900
17.8
2,800
24.6
27.61

1

4. Notes(1) Changes in significant subsidiaries during the three months ended May 31, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(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 May 31, 2017

106,888,000 shares As of February 28, 2017

106,888,000 shares

Number of treasury shares at the end of the period
As of May 31, 2017

5,480,350 shares As of February 28, 2017

5,480,350 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended May 31, 2017

101,407,650 shares Three months ended May 31, 2016

2

101,407,700 shares

Analysis of Operating Results and Financial Position for the First Quarter(1) Analysis of consolidated operating results
In the first quarter of the fiscal year under review (March 1, 2017 to May 31, 2017) retail car sales from all directly managed stores
totaled 32,947 cars, up 40.8% from the same term last year. This was attributable to an increase in the number of display sales
stores, as well as the display sales model introduced to Gulliver stores. (The Gulliver display sales model is a new approach toincreasing the number of retail cars sold at Gulliver stores while setting a lower per unit price and profit).
SG&A expenses increased with a rise in store management expenses incidental to the increase in the number of display sales
stores.
In relation to the conclusion of a syndicated loan agreement (announced on March 15, 2017), arrangement fees were paid to thearranger institution, and this is recorded in non-operating expenses as interest expenses.
The new car market in Western Australia underperformed the previous year and the segment performance for the Australia
business recorded a decline in net sales and an increase in operating losses.
As a result of the above, consolidated business results for the first quarter were net sales of 71,130 million yen (up 7.5% from thesame term last year.), operating income of 1,243 million yen (down 0.2%), ordinary income of 903 million yen (down 23.0%), andprofit attributable to owners of parent of 457 million yen (down 37.5%).
Segment-specific earnings are as indicated below.
I. Domestic business
Domestic business resulted in net sales of 60,562 million yen (up 11.4% from the same term last year) and segment income(operating income) of 1,569 million yen (up 16.4%). An increase in retail car sales resulted in increases in both net sales andoperating income.
II. Australia business
The Australia business recorded net sales of 10,184 million yen (down 10.8% from the same term last year) and segment losses(operating losses) of 232 million yen (operating losses in the same term last year were 5 million yen) as the new car market inWestern Australia underperformed the same term last year.

(2) Analysis of financial position
Assets
As of the end of first quarter ended May 31, 2017, total assets were 122,871 million yen (up 7.7% compared to the end of theprevious fiscal year, February 28, 2017).
Current assets were 72,739 million yen (up 14.1% compared to the end of the previous fiscal year) on increased cash and deposits(up 13,279 million yen) while merchandise decreased (down 4,823 million yen).
Non-current assets were 50,131 million yen (down 0.3% compared to the end of the previous fiscal year) on increased buildings
and structures (up 884 million yen), decreased buildings under construction (down 596 million yen), and decreased goodwill(down 444 million yen).

Liabilities
As of the end of first quarter ended May 31, 2017, total liabilities were 83,773 million yen (up 12.5% compared to the end of theprevious fiscal year)3Current liabilities were 26,981 million yen (down 8.5% compared to the end of the previous fiscal year) on decreased short-termloans (down 2,066 million yen) and a decrease in accounts payable (down 1,108 million yen).
Non-current liabilities were 56,792 million yen (up 26.3% compared to the end of the previous fiscal year) on increased long-termloans (up 11,911 million yen).

Net assets
As of the end of first quarter ended May 31, 2017, total net assets were 39,097 million yen (down 1.2% compared to the end of theprevious fiscal year) due to a decrease in retained earnings (down 151 million yen), and a decrease in foreign currency adjustments(down 260 million yen) among other factors.

(3) Consolidated earnings forecast and other forward-looking information
There are no changes to our consolidated earnings forecasts for FY2018 from the figures released on April 13, 2017 in ourSummary of Consolidated Financial Results for the Year Ended February 28, 2017 (Based on Japanese GAAP).

4

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of February 28, 2017

As of May 31, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

14,337
4,655

27,616
4,650

Merchandise
Deferred tax assets

41,333785

36,510
1,026

Other
Allowance for doubtful accounts

2,717
(64)

2,988
(53)

Total current assets

63,76572,73929,766(10,134)

30,997(10,481)

19,632

20,515

312
(100)

207
(117)

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

212

89

4,097
(3,088)4,153(3,167)

1,009

985

218
961

218
365

22,033

22,175Intangible assets
Software

3,201

3,208

Goodwill
Other

9,687
4,024

9,242
3,812

Total intangible assets

16,914

16,263

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
Other40

32

247
229

250
227

5,033
5,214

5,157
5,271

361
533

379
712

Allowance for doubtful accounts

(325)

(339)

Total investments and other assets

11,334

11,692

Total non-current assets
Total assets

550,281

50,131

114,047

122,871

(Millions of yen)
As of February 28, 2017

As of May 31, 2017

Liabilities
Current liabilities
Accounts payable - trade

12,317

11,210

Short-term loans payable
Current portion of long-term loans payable

3,408
–

1,342
55

Accounts payable - other
Income taxes payable

3,885
679

3,432
812

Advances received
Deposits received

4,228
383

3,633
400

Provision for bonuses
Provision for merchandise warranties

651
1,149

87
1,187

Other provision
Other

175
2,602

189
4,628

Total current liabilities

29,483

26,981

Non-current liabilities
Long-term loans payable

40,774

52,686

529
188

510
–

1,866
1,127

1,914
1,069

425
70

419
192

44,98356,792

74,466

83,773

Shareholders' equity
Capital stock

4,157

4,157

Capital surplus
Retained earnings

4,032
33,821

4,03233,670

Treasury shares(3,947)(3,947)

Total shareholders' equity

38,06337,912Foreign currency translation adjustment

578

318

Total accumulated other comprehensive income

578

318

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

Accumulated other comprehensive income

Subscription rights to shares

55

Non-controlling interests

934

860

Total net assets
Total liabilities and net assets

639,581

39,097114,047

122,871

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, 2016

May 31, 2017

Net sales
Cost of sales

66,192
51,184

71,13055,041Gross profit

15,007

16,088Selling, general and administrative expenses

13,761

14,845

Operating income

1,245

1,243

Interest income
Income of compensation for damage

1435

12–

Insurance income
Other453

712

Total non-operating income

107

32

113

248

Foreign exchange losses
Share of loss of entities accounted for using equity method

22–

4669

Other

44

7

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Directors' retirement benefits
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Profit before income taxes

180372

1,173

903

1101102284

110––
1402133101

1,050

802

Income taxes - current

614

711

Income taxes - deferred(258)(271)

Total income taxes

356

440

Profit694

362

Loss attributable to non-controlling interests

(37)

(95)

Profit attributable to owners of parent

732

457

7Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income

Three months ended

Three months ended

May 31, 2016

May 31, 2017
694

362

(154)

(245)

–7(154)(237)Comprehensive income

539

124

Comprehensive income attributable toComprehensive income attributable to owners of parent

598

197

(58)

(73)

Comprehensive income attributable to non-controllinginterests

8