Izumi : Summary of Consolidated Financial Results for the Three Months Ended May 31, 2021

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, 2021 (Based on Japanese GAAP)

				July 13, 2021
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:	Executive Officer and General Manager of	Kiminari Taira	TEL [phone]
Finance & Accounting Department
Scheduled date to file Quarterly Securities Report:	July 14, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for three months ended May 31, 2021 (from March 1, 2021 to May 31, 2021)

(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		%
Three months ended May 31, 2021	164,954			10.7		7,832		24.2		8,050		26.1		5,081		52.7
Three months ended May 31, 2020	149,055			(19.0)		6,305		(4.4)		6,381		(3.1)		3,327		(21.5)
	Earnings per share			Diluted earnings per share
						Yen					Yen
Three months ended May 31, 2021				70.97					-
Three months ended May 31, 2020				46.43					-
(2) Consolidated financial position
	Total assets					Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of May 31, 2021		469,731					246,427					49.7
As of February 28, 2021		489,692					245,411					47.5
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, 2021				-		40.00				-				43.00			83.00
Year ending February 28, 2022				-
Year ending February 28, 2022						43.00				-				43.00			86.00
(Forecast)

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3. Forecast of consolidated financial results for the fiscal year ending February 28, 2022 (from March 1, 2021 to February 28, 2022) Percentages indicate year-on-year changes

	Operating revenue	Operating profit	Ordinary profit		Profit attributable to	Earnings per share
		owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
354,300	8.6	17,500	6.3	17,700		6.4	11,900	11.4	166.07
August 31, 2021
Full year	721,400	6.1	36,700	2.6	36,800		2.0	23,500	1.9	327.95

4. Notes

1. Changes in significant subsidiaries during the three months ended May 31, 2021 (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 May 31, 2021	71,665,200	shares	As of February 28, 2021	71,665,200	shares
Number of treasury shares at the end of the period
	As of May 31, 2021	208,190	shares	As of February 28, 2021	8,106	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended May 31, 2021	71,607,042	shares	Three months ended May 31, 2020	71,657,839	shares

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Quarterly consolidated financial statements

Quarterly consolidated balance sheets

			(Millions of yen)
		As of February 28, 2021	As of May 31, 2021
Assets
Current assets
Cash and deposits	25,306	7,452
Notes and accounts receivable - trade	42,497	44,090
Merchandise and finished goods	21,661	22,229
Work in process	20	43
Raw materials and supplies	458	452
Other	17,717	14,349
Allowance for doubtful accounts	(550)	(550)
Total current assets	107,112	88,067
Non-current assets
Property, plant and equipment
Buildings and structures, net	155,281	154,336
Land	163,136	163,276
Other, net	12,121	12,356
Total property, plant and equipment	330,539	329,968
Intangible assets
Goodwill	2,441	2,307
Other	8,249	8,509
Total intangible assets	10,690	10,817
Investments and other assets
Other	41,896	41,422
Allowance for doubtful accounts	(546)	(545)
Total investments and other assets	41,350	40,877
Total non-current assets	382,580	381,663
Total assets	489,692	469,731

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			(Millions of yen)
		As of February 28, 2021	As of May 31, 2021
Liabilities
Current liabilities
Notes and accounts payable - trade	47,367	31,425
Short-term borrowings	1,300	14,800
Current portion of long-term borrowings	19,756	17,151
Income taxes payable	7,983	2,576
Provision for bonuses	2,204	3,959
Provision for bonuses for directors (and other officers)	36	7
Provision for point card certificates	2,416	2,451
Provision for loss on recollection of gift certificates	115	115
Provision for loss on building demolition	117	110
Other	32,298	24,162
Total current liabilities	113,596	96,761
Non-current liabilities
Long-term borrowings	88,335	83,347
Provision for retirement benefits for directors (and other	915	85
officers)
Provision for loss on interest repayment	146	142
Provision for loss on building demolition	436	436
Retirement benefit liability	8,852	8,892
Asset retirement obligations	8,267	9,199
Other	23,731	24,439
Total non-current liabilities	130,684	126,542
Total liabilities	244,281	223,303
Net assets
Shareholders' equity
Share capital	19,613	19,613
Capital surplus	22,545	22,580
Retained earnings	189,072	191,072
Treasury shares	(30)	(889)
Total shareholders' equity	231,200	232,378
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,171	1,045
Remeasurements of defined benefit plans	123	128
Total accumulated other comprehensive income	1,294	1,174
Non-controlling interests	12,915	12,874
Total net assets	245,411	246,427
Total liabilities and net assets	489,692	469,731

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

			(Millions of yen)
		Three months ended	Three months ended
		May 31, 2020	May 31, 2021
Net sales	140,707	156,624
Cost of sales	107,277	121,360
Gross profit	33,429	35,264
Operating revenue	8,348	8,330
Operating gross profit	41,778	43,594
Selling, general and administrative expenses	35,473	35,761
Operating profit	6,305	7,832
Non-operating income
Interest and dividend income	59	55
Purchase discounts	36	52
Share of profit of entities accounted for using equity method	39	23
Other	481	368
Total non-operating income	617	499
Non-operating expenses
Interest expenses	190	150
Other	350	131
Total non-operating expenses	540	282
Ordinary profit	6,381	8,050
Extraordinary income
Gain on sales of non-current assets	-	0
Gain on sales of investment securities	517	0
Subsidy income	-	11
Total extraordinary income	517	11
Extraordinary losses
Loss on retirement of non-current assets	14	35
Impairment loss	-	233
Loss on store closings	-	79
Loss related to infectious disease	1,984	81
Other	0	13
Total extraordinary losses	1,999	442
Profit before income taxes	4,899	7,619
Income taxes - current	1,329	2,365
Income taxes - deferred	131	64
Total income taxes	1,461	2,429
Profit	3,437	5,189
Profit attributable to non-controlling interests	110	108
Profit attributable to owners of parent	3,327	5,081

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