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 Year Ended February 28, 2023
(Based on Japanese GAAP)
April 14, 2023
Company name:
IDOM Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

7599
President

URL

https://221616.com
Yusuke Hatori

Inquiries:
CFO
Scheduled date of ordinary general meeting of shareholders:

Ryo Nishihata
May 26, 2023

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

May 29, 2023
May 29, 2023

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

Yes
Yes

TEL

03-5208-5503(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended February 28, 2023 (from March 1, 2022 to February 28, 2023)(1) Consolidated operating results
Net salesYear ended February 28, 2023
Year ended February 28, 2022

Year ended February 28, 2023
Year ended February 28, 2022

Operating profit

Millions of yen
416,514459,532% Millions of yen(9.4)
18,68420.8
18,485

Earnings per share

Diluted earnings per
share

%
1.1
74.9

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
18,146
3.3
14,205
31.6
17,561
82.1
10,794 627.0

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
–
24.5
10.0
4.5
–
22.0
9.6
4.0

Yen
141.48107.51(2) Consolidated financial position
Total assets
As of February 28, 2023
As of February 28, 2022

Net assets

Millions of yen
173,293
189,766

Millions of yen
62,70255,709Cash flows fromoperating activities
Millions of yen
2,275
8,276

Cash flows frominvesting activities
Millions of yen(166)(4,500)Equity ratio

Net assets per share
%
35.8
28.5

Yen
618.34537.97(3) Consolidated cash flows

Year ended February 28, 2023
Year ended February 28, 2022

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(10,634)
37,473(1,332)
45,6702. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

2.30
16.20

–
–

2.30
26.30

4.60
42.50

461
4,267

4.3
30.0

0.9
7.4

–

14.00

–

21.80

35.80

Year ended February 28, 2022
Year ended February 28, 2023
Year ending February 29, 2024
(Forecast)

30.0

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)
Net sales
Millions of yen
Six months ending
August 31, 2023
Full year

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

190,000(15.7)

7,500(13.0)

7,250(12.5)

4,700(37.5)

46.81

400,000(4.0)

19,0001.7

18,5001.9

12,000(15.5)

119.51

4. Notes(1) Changes in significant subsidiaries during the year ended February 28, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(2) 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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2023

106,888,000 shares As of February 28, 2022

106,888,000 shares

Number of treasury shares at the end of the period
As of February 28, 2023

6,480,651 shares As of February 28, 2022

6,480,641 shares

100,407,349 shares Year ended February 28, 2022

100,407,380 shares

Average number of shares during the period
Year ended February 28, 2023

2

1. Overview of Operating Results, Etc.
(1) Analysis of operating results
In the fiscal year under review (March 1, 2022 to February 28, 2023), total unit sales at directly managed stores in Japan
were 247,392 (up 4.2% year on year). Retail unit sales to consumers were 133,599 (down 3.2% year on year), reflecting efforts
made with a focus on increasing gross profit per unit. Wholesale unit sales to business operators were 111,793 (up 14.8% year
on year), reflecting a rise in the ratio of purchase negotiations successfully closed due to the impact of auction prices. With
respect to the ratio between retail unit sales and wholesale unit sales, retail unit sales stood at 54.8% and wholesale unit sales
were 45.2%. Total gross profit included gross profit of approximately 54.6 billion yen from retail sales and approximately 11.5
billion yen from wholesale sales.
The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29
issued on March 31, 2020; hereinafter the “Revenue Recognition Accounting Standard”), etc. have been applied since thebeginning of the first three months of the consolidated fiscal year under review. Due to the adoption of the Revenue
Recognition Accounting Standard and other standards, operating profit, ordinary profit, and profit before income taxes
decreased by 1,120 million yen each.
Transfer of shares in the Australian subsidiaries completed in July 2022. The consolidation period for the Australiansubsidiary were from March to May 2022, and the Australia segment recorded a decline in profit of 3,651 million yen year
on year for the third quarter of this fiscal year.
Selling, general and administrative expenses decreased in spite of increase in advertising expenses, due to the head officerelocation which resulted in lower rent expenses. There was also a decline in personnel expenses, attributable to a decreasein the number of employees because of restrained new graduate hiring.
As a result of the transfer of the shares of the Australian subsidiary, the Company posted a gain on sales of shares ofsubsidiaries of 795 million yen for the consolidated results and 2,871 million yen for the nonconsolidated results as
extraordinary income. Furthermore, goodwill impairment loss posted for 2021 deducted from taxable income after thetransfer of shares of the Australian subsidiaries reduced corporation tax, resident tax, and business taxes.
As a result of the above, the consolidated business results for the fiscal year under review were net sales of 416,514
million yen (down 9.4% year on year), operating profit of 18,684 million yen (up 1.1%), ordinary profit of 18,146 million
yen (up 3.3%) and profit attributable to owners of parent of 14,205 million yen (up 31.6%).
Regional segment-specific earnings are as indicated below:
I. JapanThe results of the Japan segment were net sales of 369,510 million yen (up 16.1% year on year) and segment profit(operating profit) of 17,428 million yen (up 26.6% year on year). Retail unit sales per directly managed store increased due
primarily to the opening of large stores with high capital efficiency.
II. Australia
The Australia segment were net sales of 44,607 million yen (down 68.0% year on year) and segment profit (operating
profit) of 1,284 million yen (up 74.0% year on year). Results of the Australian subsidiary underperformed the year-ago level
because the consolidation period has become three months due to the share transfer.
Starting with the first quarter under review, the domestic used car sales business and the new car sales business conductedin Australia including non-consolidated sales of subsidiaries Tokyo My Car and Gulliver Insurance are voluntarily disclosed
as the domestic core business segment and the Australian business segment, respectively.
I. Domestic Core Business
The results of the domestic core business segment were net sales of 365,685 million yen (up 18.7% year on year) andsegment profit (operating profit) of 17,547 million yen (up 30.2% year on year). Retail unit sales at directly managed
domestic stores decreased due to prioritized efforts to increase gross profit per unit. However, gross profit per retail unit
increased. An increase in wholesale volume and a decline in selling, general and administrative expenses increased bothsales and profit.
Previous first quarter period (From March 1, 2021 to February 28, 2022)
Domestic core
Net sales
Segment profit(Operating profit)

Australia

Other (Differences)

Amortization of
goodwill

Consolidated

308,019

139,364

12,148-459,532

13,478

4,935

516

(444)

18,4853

First quarter under review (From March 1, 2022 to February 28, 2023)
Domestic core
Net sales
Segment profit(Operating profit)

Australia

Other (Differences)

Amortization of
goodwill

Consolidated

365,685

44,607

6,221-

416,514

17,547

1,284

36

(110)

18,684

Outlook for the Next Fiscal YearThe forecasts for the next fiscal year are based on the following assumptions.
(i) Parent company and Japan segment
It is assumed that auction prices will decrease in the next fiscal year. Despite that, the Company will steadily take steps tocontrol gross profit and increase incidental earnings associated with retail sales. By doing so, it expects gross profit on thebasis of the number of sold vehicles to be on par with the previous year's level. Retail unit sales are expected to rise year on
year due to the opening of 10 large, capital efficiency-focused stores in the second half, as well as the contribution by large
stores opened in the previous fiscal year.
(ii) Consolidated
It is assumed that IDOM Innovations Pty Ltd., which researches and develops new services in Australia, will be included
in consolidated results by the end of the next fiscal year.
Based on the above assumptions, the Company forecasts that in the next fiscal year, it will post net sales of 400,000
million yen, operating profit of 19,000 million yen, ordinary profit of 18,5000 million yen and profit attributable to ownersof parent of 12,000 million yen.
(2) Analysis of financial position
Status of assets, liabilities and net assets(Assets)
As of the end of the fiscal year under review, total assets stood at 173,293 million yen (down 8.7% compared to the end of
the previous fiscal year).
Current assets were 131,478 million yen (down 6.8% compared to the end of the previous fiscal year), mainly reflecting an
decrease in cash and deposits (down 8,196 million yen).
Non-current assets were 41,815 million yen (down 14.0% compared to the end of the previous fiscal year) chiefly due to adecrease in goodwill (down 5,908 million yen), while an increase in buildings and structures (up 4,204 million yen).
(Liabilities)
As of the end of the fiscal year under review, total liabilities were 110,591 million yen (down 17.5% compared to the endof the previous fiscal year).
Current liabilities stood at 64,165 million yen (up 5.0% from the end of the previous fiscal year) due to an increase incontract liabilities (up 25,336 million yen from the end of the previous year), despite a decrease in accounts payable - trade(down 18,796 million yen).
Non-current liabilities were 46,426 million yen (down 36.4% compared to the end of the previous fiscal year) due to a fallin long-term borrowings (down 24,523 million yen), among other factors.
(Net assets)
As of the end of the fiscal year under review, total net assets amounted to 62,702 million yen (up 12.6% compared to theend of the previous fiscal year), largely due to an increase in retained earnings (up 7,065 million yen).
Status of cash flows
Cash and cash equivalents (hereinafter, "cash") for the fiscal year under review were 37,473 million yen, a decrease of
8,196 million yen (down 17.9%) compared to the end of the previous fiscal year.
The status of cash flows for FY2023 and respective relevant cash flows are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 2,275 million yen.
This was mainly attributable to profit before income taxes of 18,752 million yen and depreciation of 2,581 million yen andan increase in inventories of 24,349 million yen and a decrease in trade receivables of 4,660 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 166 million yen.
This mainly reflected5,441 million yen used for purchase of property, plant and equipment, 2,910 million yen used for
payments for loans receivable, while 8,597 million yen was provided by the sale of shares of subsidiaries accompanying
changes in the scope of consolidation.
4

(Cash flows from financing activities)
Net cash used in financing activities was 10,634 million yen.
This was mainly attributable to repayments of long-term borrowings of 10,169 million yen.
(Reference) Changes in cash flow indicators
FY2019FY2020

FY2021

FY2022

FY2023Equity ratio (%)

22.9

22.9

24.8

28.5

35.8

Shareholders' equity (markto-market) ratio (%)

21.9

28.3

35.1

34.8

49.1

Debt redemption years

－

6.7

4.1

9.5

31.5

Interest coverage ratio

－

10.2

18.6

9.0

3.7

Notes:
1. Breakdown of each indicator
Equity ratio = Shareholders' equity/Total assetsx
Shareholders’ equity (mark-to-market) ratio = Market capitalization/Total assets
Debt redemption years = Interest bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest payments
2. Each index is calculated from consolidated figures.
3. Market capitalization is calculated using the following formula: closing share price at period-end x number ofshares issued (excluding treasury stock)
4. Debt redemption years and interest coverage ratio for FY2019 are not shown in the above table due
to a negative figure for operating cash flow.
(3) Basic Policy on Profit Distribution and Dividends for Fiscal Years Ended February 2023 and Ending February 2024
(i) Basic policy on dividends and targets
The Company adopted performance-linked dividends as its dividend policy, based on which dividends are determined insync with consolidated results. While this policy will remain unchanged going forward, it has decided to partially review its
dividend determination method, starting from the end of the fiscal year under review (fiscal year ended February, 2023).
Traditionally, in principle, the Company had been using 30% of profit attributable to owners of parent in the previous fiscal
year as total dividends for the determination of dividends per share for the current fiscal year. Going forward (starting withthe end of the fiscal year under review), however, it will use, in principle, 30% of profit attributable to owners of parent in
the current fiscal year as total dividends to determine dividends per share for the said current year. The advantage of theprevious dividend determination method was that initial dividend forecasts, once announced, remained unchanged inprinciple because dividends for the current year were decided based on results for the previous fiscal year. However, wehave reached the conclusion that the revision is appropriate considering our latest consolidated business results.
(ii) Dividends for the fiscal year under review
Under the policy above, annual dividends per share for the fiscal year under review will be 42.50 yen (16.20 yen at the endof the first half and 26.30 yen at the end of the fiscal year).
In consideration of the above partial review of the dividend determination method, annual dividends per share for the fiscal
year under review will be 42.50 yen (16.20 yen at the end of the first half and 26.30 yen at the end of the fiscal year).
(iii) Dividends for next fiscal year
Based on the above, the Company has calculated dividends per share (forecast) for the next fiscal year based on profit
attributable to owners of parent in the fiscal year under review. It is planned that annual dividends per share for the next
fiscal year will be 35.80 yen (14.00 yen at the end of the first half and 21.80 yen at the end of the fiscal year).
2. Basic Policy for the Selection of Accounting Standards
In light of the convergence of Japanese GAAP and IFRS, the Group intends to create financial statements using Japanese
GAAP for the time being.

5Consolidated financial statements
Consolidated balance sheets
As of February 28, 2022

(Millions of yen)
As of February 28, 2023

45,6705,620
85,363
4,907(416)
141,146

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

37,102(16,061)
21,040
298
(60)
238
4,279
(3,114)
1,164
136
1,083
23,66341,306(16,873)
24,433
236
(148)
88
5,077
(3,362)
1,715
136
67
26,441

1,465
5,995
4,314
11,775

1,300
86
2
1,389

20
129
228
4,405
4,289
3,677
438
(8)
13,181
48,620189,766

0
29
76
5,045
3,955
4,435
449
(6)
13,984
41,815173,293

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 assets
Software
Goodwill
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

6

As of February 28, 2022

(Millions of yen)
As of February 28, 2023

23,618
1,101
10,000
4,713
3,960
9,548
–
215
1,965
884
1,327
3,750
61,085

4,822–
24,145
3,812
864–
25,336
309
897
–
342
3,635
64,16567,523
587
2,236
1,535
680
407
72,972
134,057

43,000
599
2,643
–
–
183
46,426
110,591

4,157
4,361
49,673(4,344)53,847

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

168
168
–
1,693
55,709189,766

284
284
147
468
62,702
173,293

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Advances received
Contract liabilities
Deposits received
Provision for bonuses
Provision for merchandise warranties
Other provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term guarantee deposits
Asset retirement obligations
Deferred tax liabilities
Other provisions
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

7

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
Fiscal year ended
February 28, 2022
February 28, 2023
Net sales
459,532
416,514
Cost of sales
373,519
341,964
Gross profit
86,01374,549Selling, general and administrative expenses
67,52855,865
Operating profit
18,485
18,684Non-operating income
Interest income
31
107
Subsidy income
54
26
Other
106
67
Total non-operating income
191202
Non-operating expenses
Interest expenses
917
571
Foreign exchange losses
72
71
theft loss
11
87
Share of loss of entities accounted for using equity
92–
methodOther
21
9
Total non-operating expenses
1,115
739
Ordinary profit
17,561
18,146Extraordinary income
Gain on sale of non-current assets
23
54
Gain on sale of shares of subsidiaries and associates–
795
Gain on liquidation of subsidiaries–
19
Subsidy income
591Compensation income
25
–
Other
5
48
Total extraordinary income
59
1,008
Extraordinary losses
Loss on retirement of non-current assets
378
222
Loss on valuation of investment securities
109–
Loss on sale of shares of subsidiaries and associates
276–
Impairment losses
114
103
Loss on store closings82–
Loss on COVIT19
4–Head office relocation expenses
870
–
Other
32
76
Total extraordinary losses
1,870
402
Profit before income taxes
15,75018,752
Income taxes - current
4,836
2,859
Income taxes - deferred
(516)
1,621
Total income taxes
4,319
4,480
Profit11,43014,272
Profit attributable to non-controlling interests
635
67
Profit attributable to owners of parent
10,794
14,2058

Consolidated statements of comprehensive income

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 to noncontrolling interests

9

Fiscal year ended
February 28, 2022
11,430(Millions of yen)
Fiscal year ended
February 28, 2023
14,272

(7)

303

58

–

50
11,481

303
14,576

10,82914,321651

255

Consolidated statements of changes in equity
Fiscal year ended February 28, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

4,157

Retained earnings

4,384

39,665

Total shareholders'equityTreasury shares(4,344)

43,862

Changes during period
Dividends of surplus
Profit attributable to owners ofparent

(763)

(763)

10,794

10,794Purchase of treasury shares(0)Change in scope of consolidation(24)

Change in ownership interest ofparent due to transactions with noncontrolling interests

(23)

(23)

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–
–

(23)

10,007

(0)

9,984

4,157

4,361

49,673(4,344)53,847

Accumulated other comprehensive income
Total accumulated
Foreign currency
other comprehensive
translation adjustment
incomeBalance at beginning of period

134

134

Non-controllinginterests
1,018

Total net assets

45,015

Changes during period
Dividends of surplus(763)

Profit attributable to owners ofparent10,794Purchase of treasury shares(0)Change in scope of consolidation(24)

Change in ownership interest ofparent due to transactions with noncontrolling interests(23)

Net changes in items other thanshareholders' equity

(0)
(24)

34

34

674

709

Total changes during period

34

34

674

10,693

Balance at end of period

168

168

1,693

55,70910

Fiscal year ended February 28, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

4,157

Retained earnings

4,361

Cumulative effects of changes inaccounting policies
Restated balance

Total shareholders'equityTreasury shares

49,673(4,344)(5,288)
4,157

4,361

44,38453,847(5,288)(4,344)48,558Changes during period
Dividends of surplus(1,857)(1,857)

Profit attributable to owners ofparent14,205

14,205Purchase of treasury shares(0)Change in scope of consolidation

23

Change in ownership interest ofparent due to transactions with noncontrolling interests

866

(0)

6

29
866

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period–

889

12,354(0)

13,243

4,157

5,250

56,738(4,344)61,801

Accumulated other comprehensive income
Total accumulated
Foreign currency
other comprehensive
translation adjustment
incomeBalance at beginning of period

168

168

Share acquisitionrightsNon-controllinginterests–

1,693

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

55,709(5,288)

168

168

–

1,693

50,420Changes during period
Dividends of surplus(1,857)

Profit attributable to owners ofparent14,205Purchase of treasury shares(0)Change in scope of consolidation

29

Change in ownership interest ofparent due to transactions with noncontrolling interests

866

Net changes in items other thanshareholders' equity

115

115

147

(1,224)(961)

Total changes during period

115

115

147

(1,224)

12,281

Balance at end of period

284

284

147

468

62,702

11

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
February 28, 2023

Fiscal year ended
February 28, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
yyyInterest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Share-based payment expenses
Interest expenses
Foreign exchange losses (gains)
Subsidy income
Loss on retirement of non-current assets
Loss (gain) on valuation of investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
Impairment losses
Loss on COVID19
Loss (gain) on liquidation of subsidiaries
Headquarters relocation cost
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 accrued expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Subsidies received
Payments for loss on COVID-19
Net cash provided by (used in) operating activities

12

15,750
2,797
454
858
53
147
(31)

18,7522,581
110(1,067)
197
(884)
(107)

92

–

–
917
51
(5)
378
109

143
571
576
(91)
222
–

276

(795)

114
4
–
870
3,083
(13,978)

103
–
(19)
–
4,660
(24,349)

(160)

96

(1,021)(3,083)
2,995
306
0
1,157
12,14131(915)(2,980)
5
(4)
8,276

708
179
1,847
431
431
3,009
7,309
107
(571)
(4,661)91–
2,275

(Millions of yen)
Fiscal year ended
February 28, 2023

Fiscal year ended
February 28, 2022
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 guarantee
deposits
Payments of construction assistance fund receivables
Proceeds from collection of construction assistancefund receivables
Purchase of shares of subsidiaries and associates
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
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from issuance of share acquisition rights
ppp
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
Increase (decrease) in cash and cash equivalents resulting
from change in scope of consolidation
Cash and cash equivalents at end of period

13(4,961)
154
(463)
(681)
(206)
200
(277)

(5,441)
85
(402)
(29)
(2,910)
138
(834)

1,350

196

(209)

(115)

534

450

(8)

–

71

8,597

–
(2)
(4,500)

119
(21)
(166)

1,285
82
(1,932)
(0)
–
(768)

–
–
(10,169)(0)3(1,856)–

1,387(1,332)(10,634)

31

328

2,474
43,179(8,196)45,67016–

45,67037,473

Non-consolidated financial statements
Non-consolidated balance sheets
As of February 28, 2022

(Millions of yen)
As of February 28, 2023

38,0895,470
60,216
45
1,297
2,447
(484)
107,082

35,393
7,497
80,978
45
1,413
4,588
(691)
129,225

16,860
3,614
176
817
136
1,082
22,687

19,867
4,486
88
1,683
136
67
26,327

0
1,305
0
1,305

–
1,206
0
1,206

0
6,242
–

0
690
3

6,881

2,486

7
297
4,382
4,289
3,695
132
(42)
25,88749,881
156,964

6
297
5,005
3,955
4,467
133
(18)
17,02844,562
173,787

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Trademark right
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Long-term loans receivable from subsidiaries
and associates
Distressed receivables
Long-term prepaid expenses
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

14

As of February 28, 2022

(Millions of yen)
As of February 28, 2023

6,081

4,785

231

545

10,000
2,910
184
2,671
346
1,551
9,409
–
1,844
1,965
884
660
1,327
–
40,06824,690
3,172
636
817
548
1,639
–
25,305
3,358
896
–
–
342
1,370
68,10867,145
587
2,163
183
70,079110,148

42,454
599
2,605
183
45,842
113,950

4,157

4,157

4,032
4,032

4,032
4,032

169

354

42,80142,970(4,344)46,816–
46,816
156,964

55,48955,844(4,344)
59,689147
59,836
173,787

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings from subsidiaries andassociates
Current portion of long-term borrowings
Accounts payable - otherAccounts payable - facilities
Income taxes payable
Accrued consumption taxes
Accrued expenses
Advances received
Contract liabilities
Deposits received
Provision for bonuses
Provision for merchandise warranties
Unearned revenue
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
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders' equity
Share acquisition rights
Total net assets
Total liabilities and net assets

15

Non-consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Salaries and allowances
Provision for bonuses
Depreciation
Rent expenses on land and buildings
Provision of allowance for doubtful accounts
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
theft loss
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on extinguishment of tie-in shares
Gain on sale of shares of subsidiaries and associates
Gain on sale of non-current assets
Gain on liquidation of subsidiaries
Subsidy income
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of shares of subsidiaries and associates
Impairment losses
Loss on store closings
Loss on COVIT19
Head office relocation expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit16

Fiscal year ended
February 28, 2022
306,733
245,661
61,071(Millions of yen)
Fiscal year ended
February 28, 2023
366,069
301,226
64,842

5,952
12,933
1,838
2,220
10,21053
15,95549,164
11,907

6,974
12,698
515
2,374
9,798
185
15,882
48,43016,412

162
19
182

141
14
155

415
79
11
9
516
11,573

415
64
87
2
569
15,998

–
–
23
106
4
3
137

5,035
2,871
54
19
91
48
8,119

326
855
114
82
3
870
6
2,260
9,450
3,356
(458)
2,897
6,553

229
–
103
–
–
–
76
408
23,709
2,118
1,571
3,689
20,020