Izumi : Summary of Consolidated Financial Results for the Six Months Ended August 31, 2023

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 10, 2023
Company name:	IZUMI CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	8273	URL https://www.izumi.co.jp/
Representative:	President and Representative Director	Yasuaki Yamanishi
Inquiries:	General Manager of Finance & Accounting	Manabu Tanabe	TEL [phone]
Department
Scheduled date to file Quarterly Securities Report:	October 11, 2023
Scheduled date to commence dividend payments:	November 17, 2023
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(For institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for six months ended August 31, 2023 (from March 1, 2023 to August 31, 2023)

(1) Consolidated financial results (cumulative)					Percentages indicate year-on-year changes
	Operating revenue		Operating profit	Ordinary profit		Profit attributable to
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Six months ended August 31, 2023	233,320	4.1		15,518	(1.1)	15,812		(0.6)	10,460	(1.6)
Six months ended August 31, 2022	224,061	-		15,694	-	15,907		-	10,634	-
	Earnings per share	Diluted earnings per share
		Yen			Yen
Six months ended August 31, 2023		146.29			-
Six months ended August 31, 2022		148.77			-

(Note) The Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2021) and relevant ASBJ regulations from the beginning of the fiscal year ended February 28, 2023, and each figure for the first six months of the fiscal year ended February 28, 2023 and for the first six months of the fiscal year ending February 29, 2024 is the figure after applying the accounting standard and relevant ASBJ regulations. The percentage of year-on-year change for the first six months of the fiscal year ended February 28, 2023 is not shown.

(2) Consolidated financial position
	Total assets		Net assets		Equity ratio
	Millions of yen	Millions of yen			%
As of August 31, 2023	486,812	286,093			56.0
As of February 28, 2023	478,541	278,104			55.4
2. Cash dividends
			Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end		Fiscal year-end	Total
	Yen		Yen			Yen		Yen	Yen
Year ended February 28, 2023	-		43.00			-		44.00	87.00
Year ending February 29, 2024	-		44.00
Year ending February 29, 2024						-		44.00	88.00
(Forecast)

1

3. Forecast of consolidated financial results for the fiscal year ending February 29, 2024 (from March 1, 2023 to February 29, 2024) Percentages indicate year-on-year changes

	Operating revenue	Operating profit	Ordinary profit	Profit attributable to	Earnings per share
	owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	476,600	3.6	31,000	(7.9)	31,000	(9.9)	19,100	(17.6)	267.15

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:

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:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	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	71,665,200	shares	As of February 28, 2023	71,665,200	shares
Number of treasury shares at the end of the period
	As of August 31, 2023	146,769	shares	As of February 28, 2023	168,894	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended August 31, 2023	71,505,654	shares	Six months ended August 31, 2022	71,485,587	shares

2

Quarterly consolidated financial statements

Quarterly consolidated balance sheets

			(Millions of yen)
		As of February 28, 2023	As of August 31, 2023
Assets
Current assets
Cash and deposits	10,331	8,724
Notes and accounts receivable - trade, and contract assets	47,493	52,013
Merchandise and finished goods	23,741	25,662
Work in process	82	174
Raw materials and supplies	564	605
Other	18,376	13,706
Allowance for doubtful accounts	(522)	(506)
Total current assets	100,067	100,379
Non-current assets
Property, plant and equipment
Buildings and structures, net	144,492	156,620
Land	166,207	166,924
Other, net	17,509	13,070
Total property, plant and equipment	328,209	336,614
Intangible assets
Goodwill	1,375	1,109
Other	10,455	10,451
Total intangible assets	11,831	11,560
Investments and other assets
Other	38,894	38,834
Allowance for doubtful accounts	(460)	(576)
Total investments and other assets	38,433	38,257
Total non-current assets	378,474	386,433
Total assets	478,541	486,812

3

			(Millions of yen)
		As of February 28, 2023	As of August 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	26,076	29,829
Short-term borrowings	7,590	4,500
Current portion of long-term borrowings	18,430	15,669
Accounts payable - other	14,133	23,228
Income taxes payable	6,124	5,340
Provision for bonuses	2,251	2,832
Provision for bonuses for directors (and other officers)	79	5
Contract liabilities	6,970	7,675
Provision for loss on lease contracts	32	32
Other	25,374	23,843
Total current liabilities	107,064	112,958
Non-current liabilities
Long-term borrowings	50,517	44,143
Long-term leasehold and guarantee deposits received	21,843	22,086
Provision for retirement benefits for directors (and other	68	75
officers)
Provision for loss on interest repayment	241	257
Provision for loss on lease contracts	391	375
Provision for loss on building demolition	-	209
Retirement benefit liability	8,841	9,035
Asset retirement obligations	9,484	9,572
Other	1,983	2,005
Total non-current liabilities	93,372	87,760
Total liabilities	200,437	200,719
Net assets
Shareholders' equity
Share capital	19,613	19,613
Capital surplus	22,753	22,753
Retained earnings	221,682	228,974
Treasury shares	(720)	(625)
Total shareholders' equity	263,329	270,717
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,041	1,524
Remeasurements of defined benefit plans	664	601
Total accumulated other comprehensive income	1,706	2,126
Non-controlling interests	13,068	13,249
Total net assets	278,104	286,093
Total liabilities and net assets	478,541	486,812

4

Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income Quarterly consolidated statements of income

			(Millions of yen)
		Six months ended	Six months ended
		August 31, 2022	August 31, 2023
Operating revenue	224,061	233,320
Net sales	197,984	205,627
Cost of sales	131,854	136,213
Gross profit	66,130	69,414
Operating revenue	26,076	27,693
Operating gross profit	92,207	97,107
Selling, general and administrative expenses	76,512	81,589
Operating profit	15,694	15,518
Non-operating income
Interest and dividend income	121	119
Purchase discounts	97	112
Share of profit of entities accounted for using equity method	-	54
Other	431	323
Total non-operating income	649	610
Non-operating expenses
Interest expenses	232	170
Share of loss of entities accounted for using equity method	23	-
Other	180	145
Total non-operating expenses	436	316
Ordinary profit	15,907	15,812
Extraordinary income
Gain on sale of non-current assets	107	332
Gain on sale of investment securities	90	15
Subsidy income	13	156
Subsidy income	83	-
Total extraordinary income	293	503
Extraordinary losses
Loss on retirement of non-current assets	93	57
Impairment losses	28	179
Loss on store closings	113	197
Provision for loss on building demolition	-	209
Other	1	-
Total extraordinary losses	237	644
Profit before income taxes	15,964	15,671
Income taxes - current	5,078	4,893
Income taxes - deferred	80	196
Total income taxes	5,159	5,089
Profit	10,805	10,581
Profit attributable to non-controlling interests	170	121
Profit attributable to owners of parent	10,634	10,460

5