Summary Report of Consolidated Financial Results
For the Nine Months Ended March 31, 2017

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Don Quijote Holdings Co., Ltd.
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Kohji Oohara, President and CEO
Contact:
Mitsuo Takahashi, Senior Managing Director (Phone: +81-3-5725-7588)
URL:
http://www.donki-hd.co.jp(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the nine months ended 31 March, 2017
(1) Results of Business Operations(Millions of yen, except per-share data)
OperatingOrdinaryNet Sales
Change (%)
Change (%)
Change (%)
IncomeIncomeNine Months Ended
619,987
8.9
37,1386.3
36,006
2.1
March 31, 2017
Nine Months Ended
569,547
11.7
34,9373.7
35,2491.3
March 31, 2016
(Note) Comprehensive income: 33,608 million yen [50.0%] (FY 2017.6 3Q), 22,410 million yen [△13.4%] (FY 2016.6 3Q)
ProfitAttributable toOwners of Parent
Nine Months Ended
March 31, 2017
Nine Months Ended
March 31, 2016

Change (%)

Net Income
Per Share(Yen)Net Income Per
Share-fully
diluted (Yen)

26,97736.7

170.59170.53

19,732△1.7

124.83124.73(2) Financial Position(Millions of yen, except per-share data)

Ratio of Shareholders’ Equity
to Total Assets (%)
As of March 31, 2017629,705
273,448
40.3
June 30, 2016
560,568
244,547
41.3(Reference) Equity: 253,557 million yen (as of March 31, 2017), 231,528 million yen (as of June 30, 2016)
Total Assets

Net assets

2. DividendsThree Months Ended
September 30
Year Ended June 30,
2016
Year Ending June 30,
2017Year Ending June 30,
2017 (Forecast)

Six Months EndedDecember 31

YenNine Months
Ended March 31

－5.00

－－

5.00

－

Year Ended June30

Total

17.00

22.00

18.00

23.00

(Note) Revision to the dividend forecast in the third quarter of fiscal 2017: None
3. Consolidated Business Forecast：For the year ending June 30, 2017 (From July 1, 2016 to June 30, 2017)(Millions of yen, except per-share data)
ProfitNet

ChangeOperating

ChangeSales(%)

Income(%)

Ordinary
IncomeChangeAttributable toChange(%)

Owners of(%)

ParentYear Ending
June 30, 2017
(Note)

822,000

8.2

45,5005.4

44,800

Revision to the business forecast in the third quarter of fiscal 2017: Yes

1

2.3

31,50026.3

Net Incomeper Share(Yen)
199.15

4. Others(1) Significant changes in the scope of consolidation: None
Newly consolidated: － Excluded:－(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: None
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: Yes② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury stock included)
March 31, 2017
158,174,560 shares
June 30, 2016
158,118,160 shares② Number of treasury stock
March 31, 2017
4,633 shares
June 30, 2016
4,633 shares③ Average number of outstanding shares during the period
March 31, 2017
158,140,328 shares
March 31, 2016
158,072,181 shares(5) Changes in accounting policies(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (AccountingStandards Board of Japan (ASBJ) Accounting Statement No. 26 of March 28, 2016; hereinafter called the“Implementation Guidance on Recoverability”) from the first quarter of the fiscal year and revised part of its
accounting treatment for recoverability of deferred tax assets.
As for application of the Implementation Guidance on Recoverability, the Company followed the transitional
treatment stipulated in paragraph 49 (4) of the Implementation Guidance on Recoverability.
The differences between the amount of deferred tax assets and deferred tax liabilities at the beginning of the firstquarter of the current fiscal year in the case of applying the paragraph 49 (3) 1 to 3 of the Implementation Guidanceon Recoverability and the amount of deferred tax assets and deferred tax liabilities at the end of the previous fiscal
year were added to the retained earnings at the beginning of the first quarter of the current fiscal year.
As a result, deferred tax assets (investments and other assets) increased by ¥4,890 million, retained earnings
increased by ¥2,406 million and non-controlling interests increased by ¥2,484 million at the beginning of the firstquarter of the current fiscal year.
※This financial summary is not subject to quarterly reviews.
※Explanation regarding the appropriate use of forecasts of business results
The financial forecasts of business results are based on judgments and estimates that have been made using
currently available information. By nature, such financial forecasts are subject to uncertainties and risks. Therefore,
actual results might be significantly different from the aforementioned forecasts for a variety of reasons, includingchanges in economic environments related to our business, market trends and exchange rates.
※The Company plans to hold financial results briefing for securities analysts and institutional investors on May 8,
2017. Presentation materials will be available on the Company’s website.

2

Consolidated Quarterly Balance Sheets(Millions of yen)
As of March 31,

As of June 30,

2017

2016

AmountAmountAssetsCurrent assets
Cash and deposits¥74,059¥42,894

8,833

7,720

－6,606Merchandise

118,061

117,400

Other

18,405

21,423(25)(66)

219,333

195,977116,017

108,114

Notes and Accounts receivable-trade
Purchased receivables

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Tools, furniture and fixtures, net

17,25016,616

Land

169,810

165,185

3,320

2,137

306,397

292,052

Goodwill

5,521

6,852

Other

10,513

10,153

Total intangible assets

16,03417,005

7,436

5,736

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Lease and guarantee deposits

39,18535,645

Other43,026

15,950Allowance for doubtful accounts(1,706)(1,797)

Total investments and other assets

87,941

55,534

Total non-current assets

Total assets

3

410,372

364,591¥629,705¥560,568

(Millions of yen)
As of March 31,

As of June 30,

2017

2016

AmountAmountLiabilities
Current liabilities
Accounts payable-trade¥81,054¥70,194

296

1,680

Current portion of long-term loans payable

6,060

18,557

Current portion of bonds

19,316

12,686

Payables under fluidity lease receivables

7,125

7,147

Income taxes payable

8,470

5,573

Short-term loans payable

Provision for point card certificates

1,603

1,327

Other

31,13030,831

Total current liabilities

155,054

147,995

Bonds payable

75,69076,471Long-term loans payable

84,81245,082Long-term payables under fluidity lease receivables

21,164

26,876

Asset retirement obligations

5,892

5,177

375

439

Non-current liabilities

Negative goodwill
Other

13,27013,981

Total non-current liabilities

201,203

168,026

356,257

316,021

22,422

22,382

Total liabilities

Net assets
Shareholders' equity
Capital stock
Capital surplus

19,422

25,215Retained earnings

210,341

184,205

(14)

(14)

252,171

231,788283

12Foreign currency translation adjustment

1,103(272)

Total accumulated other comprehensive income

1,386

(260)

4223

19,84912,996

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Subscription rights to shares
Non-controlling interests
Total net assets

Total liabilities and net assets

4273,448244,547¥629,705¥560,568

Consolidated Quarterly Statements of Income
Nine months endedMarch 31, 2017

(Millions of yen)
Nine months ended
March 31, 2016

AmountAmountNet sales¥619,987¥569,547

Cost of sales

456,082

417,413

163,905

152,134

126,767

117,197

37,13834,937

Interest and dividend income

690

514

Amortization of negative goodwill

65

65

Share of profit of entities accounted for using equity method471－Penalty income

116

818

Other

1,732

1,051

Total non-operating income

3,074

2,448

Interest expenses

842

771

Cost of claim’s liquidation

389

461

2,174

189

801

715

4,206

2,136

36,00635,249Gain on sales of non-current assets

7,665

117

Gain on sales of shares of subsidiaries and associates

2,968－269－

10,902

117

Loss on retirement of non-current assets

149102

Loss on closing of stores

592

983

Other

70

1

Total extraordinary losses

811

1,086

Profit before income taxes

46,09734,280

Income taxes – Current

15,57911,304Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Non-operating expenses

Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income

Other
Total extraordinary incomeExtraordinary loss

Income taxes – Deferred(1,469)(310)

Total income taxes

14,11010,994

Profit31,98723,286

Profit attributable to non-controlling interests

5,010

3,554

¥26,977¥19,732

Profit attributable to owners of parent

5Consolidated Quarterly Statements of Comprehensive Income

ProfitNine months ended
March 31, 2017

(Millions of yen)
Nine months ended
March 31, 2016

AmountAmount¥31,987¥23,286

Other comprehensive income258(421)

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

1,364(455)(1)－Total other comprehensive income

1,621

(876)

Comprehensive income¥33,608¥22,410Comprehensive income attributable toComprehensive income attributable to owners of parent¥28,625¥18,867

4,983

3,543

Valuation difference on available-for-sale securities

Comprehensive income attributable tonon-controlling interests

6Consolidated Quarterly Statements of Cash Flows
Nine months ended
March 31, 2017
Amount(Millions of yen)
Nine months ended
March 31, 2016
AmountCash flows from operating activities:¥46,097¥34,280

11,77010,908

Amortization of negative goodwill(65)(65)

Increase (decrease) in provision

(410)

270

Interest and dividend income

(690)

(514)

Interest expenses

842771Gain on sales of non-current assets(7,665)(117)

Gain on sales of shares of subsidiaries and associates(2,968)－(215)－(2,800)(2,193)

Increase in inventories(473)(14,631)

Increase in notes and accounts payable - trade

4,400

9,258

Other, net

7,043

2,690

Subtotal

54,86640,657

Profit before income taxes
Depreciation

Gain on sales of investment securities
Increase in notes and accounts receivable - trade

Interest and dividend income received

515

411

Interest expenses paid

(974)

(867)

Income taxes paid

(12,760)(16,675)

Income taxes refund

1,203

1,630

42,85025,156

Purchase of property, plant and equipment(28,526)(31,015)

Proceeds from sales of property, plant and equipment

12,546

1,143

(672)

(396)

(3,264)(1,217)

213

107

Payment for store opening in progress(1,396)(2,632)

Proceeds from sales of investment securities

1,118

－

3,265

－

Purchase of shares of subsidiaries and associates(3,481)(160)

Payments of loans receivable(22,682)(1,685)

Collection of loans receivable

10,2429320(32,634)(35,826)

Net cash provided by operating activities
Cash flows from investing activities:

Purchase of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits

Proceeds from sales of shares of subsidiaries resulting in change
in scope of consolidation

Other, net
Net cash used in investing activities
Cash flows from financing activities:
Net increase in short-term loans payable

1,249

2,492

Proceeds from long-term loans payable44,060

38,917

Repayment of long-term loans payable(18,076)(17,058)

Proceeds from issuance of bonds

18,302

26,680(12,201)(18,373)

Redemption of bonds
7

Repayments of payables under fluidity lease receivables(6,107)(5,715)79

310(3,479)(3,159)Proceeds from issuance of common shares
Cash dividends paid

(583)

(567)

(2,202)(29)

21,042

23,498

(31)

(547)

Net increase in cash and cash equivalents

31,227

12,281

Cash and cash equivalents at beginning of period

44,496

51,292

103

－－

(32)

49－

¥75,875¥63,541

Cash dividends paid to non-controlling interests
Other, net
Net cash provided by financing activities
Effect of exchange rate change on cash and cash equivalents

Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Increase in cash and equivalents resulting
from change of accounting period of consolidated subsidiaries
Cash and cash equivalents at end of period

Segment Information
For the nine months ended March 31, 2017
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
Retailbusiness

Rentbusiness

Sub Total

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)¥599,517¥15,450¥614,967¥5,020¥619,987¥－¥619,987

374

14,89015,264

7,081

22,345(22,345)－Total599,891

30,340630,231

12,101

642,332(22,345)619,987

Segment income¥19,673¥12,520¥32,193¥5,009¥37,202¥(64)¥37,138

Sales, Segment income
Sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes the services of real estate business, marketing business and financial service
business that are not included in other reporting segments.
2. The ¥(64) million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Information is omitted since it is immaterial.
(Significant changes in goodwill)
The goodwill of other business decreased ¥1,097 million by selling stocks of Accretive Co., Ltd. partly, and having
removed from the scope of consolidation in the third quarter of fiscal 2017.
(Significant gain on negative goodwill)
Not applicable8

For the nine months ended March 31, 2016
1. Information concerning net sales and income or loss by reporting segment is as follow:(Millions of yen)
Reporting segment
RetailRentbusinessbusiness¥549,928

OthersSub Total(Note 1)

¥14,691¥564,619¥4,92811

13,322

13,333

Total

549,939

28,013

Segment income¥19,673¥10,638

Total

Adjustment Consolidated(Note 2)

(Note 3)¥569,547¥－¥569,547

5,947

19,280(19,280)－

577,952

10,875588,827(19,280)

569,547¥30,311¥4,870¥35,181¥(244)¥34,937

Sales, Segment income
Net sales
Sales to third parties
Intersegment sales

Notes
1. The other businesses segment includes the services of real estate business, marketing business and financial service
business that are not included in other reporting segments.
2. The ¥ (244) million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in goodwill)
Not applicable(Significant gain on negative goodwill)
Not applicable9