Izumi : Summary of Consolidated Financial Results for the Year Ended February 28, 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 Year Ended February 28, 2023

(Based on Japanese GAAP)

Company name:	IZUMI CO., LTD.
Stock exchange listing:	Tokyo
Stock code:	8273	URL https://www.izumi.co.jp/
Representative:	President and Representative Director
Inquiries:	General Manager of Finance & Accounting
Department

Scheduled date of ordinary general meeting of shareholders: Scheduled date to file Securities Report:

Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Holding of financial results meeting:

April 11, 2023

Yasuaki Yamanishi
Manabu Tanabe	TEL [phone]
May 24, 2023
May 25, 2023
May 25, 2023
Yes
Yes	(For institutional investors and analysts)

									(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 financial results										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	%
Year ended February 28, 2023	460,140			-	33,644		-		34,396		-	23,188	-
Year ended February 28, 2022	676,800		(0.4)	34,717		(3.0)		34,696		(3.8)	23,204	0.7
		Earnings per share		Diluted earnings			Profit/equity		Ordinary profit/total	Operating profit/
				per share						assets		operating revenue
		Yen			Yen					%				%		%
Year ended February 28, 2023	324.36			-					9.0				7.3		7.3
Year ended February 28, 2022	324.45			-					9.6				7.2		5.1
(Note)	The Company has applied the	"Accounting Standard for	Revenue Recognition"	(ASBJ Statement No. 29,	March 31, 2020) and relevant ASBJ regulations
	from the beginning of the fiscal year ended February 28, 2023, and each figure for the fiscal year ended February 28, 2023 is the figure after applying the
	accounting standard and relevant ASBJ regulations. The percentage of year-on-year change is not shown. If the accounting standard and relevant ASBJ
	regulations had not been applied, operating revenue would have been ¥700,824 million (up 3.5% year on year).
(2) Consolidated financial position
		Total assets			Net assets		Equity ratio	Net assets per share
		Millions of yen	Millions of yen				%			Yen
As of February 28, 2023	478,541			278,104				55.4	3,706.99
As of February 28, 2022	468,798			262,433				53.0	3,479.26
(Note)	The Company has applied the	"Accounting Standard for Revenue	Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations
	from the beginning of the fiscal year ended February 28, 2023, and each figure for the fiscal year ended February 28, 2023 is the figure after applying the
	accounting standard and relevant ASBJ regulations.
(3) Consolidated cash flows
		Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financing activities		at end of period
		Millions of yen	Millions of yen		Millions of yen		Millions of yen
Year ended February 28, 2023	38,313			(10,045)				(29,557)			10,331
Year ended February 28, 2022	18,577			(14,246)				(18,016)			11,621

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2. Cash dividends

		Annual dividends per share		Total cash	Dividend	Ratio of
						dividends	payout ratio	dividends to
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total	(Full year)	(Consolidated)	net assets
	(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended February 28, 2022	-	43.00	-	43.00	86.00	6,147	26.5	2.6
Year ended February 28, 2023	-	43.00	-	44.00	87.00	6,220	26.8	2.4
Year ending February 29, 2024 (Forecast)	-	44.00	-	44.00	88.00		32.9

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
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
230,300	2.8	14,200	(9.5)	14,200	(10.7)		8,900	(16.3)	124.48
August 31, 2023
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 period					No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(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:					No
Changes in accounting estimates:							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	71,665,200	shares	As of February 28, 2022	71,665,200	shares
Number of treasury shares at the end of the period
	As of February 28, 2023	168,894	shares	As of February 28, 2022	187,562	shares
Average number of shares during the period
	Year ended February 28, 2023	71,490,583	shares	Year ended February 28, 2022	71,517,631	shares

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Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 28, 2022	As of February 28, 2023
Assets
Current assets
Cash and deposits	11,621	10,331
Notes and accounts receivable - trade, and contract assets	-	47,493
Notes and accounts receivable - trade	42,794	-
Merchandise and finished goods	20,381	23,741
Work in process	95	82
Raw materials and supplies	681	564
Other	13,803	18,376
Allowance for doubtful accounts	(511)	(522)
Total current assets	88,867	100,067
Non-current assets
Property, plant and equipment
Buildings and structures	408,013	408,757
Accumulated depreciation	(258,508)	(264,264)
Buildings and structures, net	149,504	144,492
Machinery, equipment and vehicles	11,873	12,179
Accumulated depreciation	(7,968)	(8,474)
Machinery, equipment and vehicles, net	3,904	3,705
Land	166,542	166,207
Leased assets	81	16
Accumulated depreciation	(64)	(3)
Leased assets, net	16	13
Construction in progress	2,002	6,444
Other	43,650	44,118
Accumulated depreciation	(36,254)	(36,771)
Other, net	7,396	7,346
Total property, plant and equipment	329,367	328,209
Intangible assets
Goodwill	1,908	1,375
Other	9,325	10,455
Total intangible assets	11,234	11,831
Investments and other assets
Investment securities	8,729	7,931
Long-term loans receivable	1,418	1,398
Deferred tax assets	9,750	10,690
Leasehold and guarantee deposits	15,846	15,488
Other	4,047	3,384
Allowance for doubtful accounts	(462)	(460)
Total investments and other assets	39,329	38,433
Total non-current assets	379,931	378,474
Total assets	468,798	478,541

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			(Millions of yen)
		As of February 28, 2022	As of February 28, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	29,697	26,076
Short-term borrowings	10,220	7,590
Current portion of long-term borrowings	19,800	18,430
Accounts payable - other	7,429	14,133
Income taxes payable	6,135	6,124
Provision for bonuses	2,246	2,251
Provision for bonuses for directors (and other officers)	26	79
Contract liabilities	-	6,970
Provision for point card certificates	2,496	-
Provision for loss on recollection of gift certificates	201	-
Provision for loss on building demolition	357	-
Provision for loss on lease contracts	32	32
Asset retirement obligations	194	-
Other	14,994	25,374
Total current liabilities	93,835	107,064
Non-current liabilities
Long-term borrowings	69,327	50,517
Lease liabilities	14	13
Long-term leasehold and guarantee deposits received	22,170	21,843
Provision for retirement benefits for directors (and other	69	68
officers)
Provision for loss on interest repayment	204	241
Provision for loss on lease contracts	424	391
Retirement benefit liability	9,251	8,841
Deferred tax liabilities	870	950
Asset retirement obligations	9,143	9,484
Other	1,053	1,019
Total non-current liabilities	112,529	93,372
Total liabilities	206,364	200,437
Net assets
Shareholders' equity
Share capital	19,613	19,613
Capital surplus	22,580	22,753
Retained earnings	206,121	221,682
Treasury shares	(800)	(720)
Total shareholders' equity	247,515	263,329
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,028	1,041
Remeasurements of defined benefit plans	145	664
Total accumulated other comprehensive income	1,173	1,706
Non-controlling interests	13,744	13,068
Total net assets	262,433	278,104
Total liabilities and net assets	468,798	478,541

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Consolidated statements of income and consolidated statements of comprehensive income

Consolidated statements of income

			(Millions of yen)
			Year ended
		Year ended
		February 28, 2022	February 28, 2023
Operating revenue	676,800	460,140
Net sales	643,280	406,857
Cost of sales	497,337	270,611
Gross profit	145,943	136,245
Operating revenue	33,519	53,282
Operating gross profit	179,463	189,528
Selling, general and administrative expenses
Advertising and promotion expenses	9,647	8,814
Distribution expenses	8,005	8,850
Provision of allowance for doubtful accounts	159	208
Employees' salaries and bonuses	52,324	53,278
Provision for bonuses	2,136	2,117
Welfare expenses	10,320	10,645
Retirement benefit expenses	1,125	1,102
Rent expenses	11,248	11,307
Utilities expenses	7,986	14,979
Depreciation	15,267	15,147
Provision for retirement benefits for directors (and other	153	8
officers)
Other	26,369	29,424
Total selling, general and administrative expenses	144,745	155,883
Operating profit	34,717	33,644
Non-operating income
Interest and dividend income	224	226
Purchase discounts	193	199
Gain on adjustment of account payable	63	227
Share of profit of entities accounted for using equity method	-	5
Penalty income	97	-
Other	1,022	729
Total non-operating income	1,600	1,388
Non-operating expenses
Interest expenses	555	429
Compensation expenses	101	-
Share of loss of entities accounted for using equity method	290	-
Other	674	207
Total non-operating expenses	1,621	636
Ordinary profit	34,696	34,396

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