Izumi : Support Documentation about the Consolidated Financial Results for the Second Quarter of the Year Ending February 28, 2022 (FY2021)

October 12, 2021

IZUMI CO., LTD.

(Stock code: 8273)

Support Documentation about the Consolidated Financial Results for the Second Quarter of the Year Ending February 28, 2022 (FY2021)

1. Summary of Financial Results

1) Consolidated Financial Results			(Unit: millions of yen)
	FY2020	FY2021
	2Q	Full Term	2Q		Full Term
		Forecast
Operating revenue	326,353	679,778	331,844		721,400
(YoY)	88.2%	91.3%	101.7%		106.1%
Operating profit	16,457	35,781	15,970		36,700
(YoY)	116.2%	112.2%	97.0%		102.6%
Ordinary profit	16,641	36,078	16,214		36,800
(YoY)	117.5%	112.8%	97.4%		102.0%
Profit attributable to owners of parent	10,680	23,053	10,719		23,500
(YoY)	119.1%	115.5%	100.4%		101.9%
Earnings per share	¥149.05	¥321.72	¥149.81		¥327.95
Total assets	481,470	489,692	467,700
Net assets	236,310	245,411	252,535
Net assets per share	¥3,117.30	¥3,244.56	¥3,350.33
Equity ratio	46.4%	47.5%	51.2%
Total number of issued shares at the	71,665,200	71,665,200	71,665,200
end of period (incl. treasury shares)
Number of treasury shares at the	7,497	8,106	187,224
end of period
Average number of shares during	71,657,800	71,657,606	71,551,778
the period (excl. treasury shares)
Number of consolidated subsidiaries	14	15	15
Number of equity-method affiliates	5	5	5
2) Non-consolidated Financial Results			(Unit: millions of yen)
	FY2020	FY2021
	2Q	Full Term	2Q		Full Term
		Forecast
Operating revenue	303,528	634,583	309,779		674,000
(YoY)	87.3%	90.6%	102.1%		106.2%
Operating profit	12,822	29,128	12,651		30,100
(YoY)	113.9%	111.9%	98.7%		103.3%
Ordinary profit	13,100	29,420	12,851		30,200
(YoY)	115.7%	112.1%	98.1%		102.7%
Profit	7,957	17,461	8,683		19,400
(YoY)	108.7%	102.4%	109.1%		111.1%
Dividends per share	¥40.00	¥83.00	¥43.00		¥86.00
Total assets	411,519	423,212	406,353
Net assets	182,500	189,151	193,997
Equity ratio	44.3%	44.7%	47.7%

1

2. Consolidated Statements of Income														Consolidated
												(Unit: millions of yen)
				FY2020			FY2021						FY2020
				2Q (Mar-Aug)			2Q (Mar-Aug)					Full Term (Mar-Feb)
				Amount	% of Sales	Amount	% of Sales		YoY						% of Sales
	Operating revenue		326,353	-	331,844	-		101.7%			679,778	-
	Net sales		309,408	100.0%	315,182	100.0%		101.9%			645,672	100.0%
	Gross profit		71,901	23.2%	71,915	22.8%		100.0%			147,467	22.8%
	Operating revenue		16,944	5.5%	16,661	5.3%		98.3%			34,105	5.3%
	Operating gross profit		88,846	28.7%	88,577	28.1%		99.7%			181,573	28.1%
	Selling, general and		72,389	23.4%	72,606	23.0%		100.3%			145,791	22.6%
	administrative expenses
	Personnel expenses		33,566	10.8%	33,872	10.7%		100.9%			67,805	10.5%
	Depreciation		7,458	2.4%	7,454	2.4%		99.9%			15,243	2.4%
	Amortization of goodwill		383	0.1%	266	0.1%		69.4%			737	0.1%
	Rental expenses		5,725	1.9%	5,672	1.8%		99.1%			11,526	1.8%
	Utilities expenses		4,069	1.3%	3,982	1.3%		97.9%			7,482	1.2%
	Advertising expenses		4,525	1.5%	4,739	1.5%		104.7%			9,643	1.5%
	Other		16,661	5.4%	16,619	5.3%		99.7%			33,352	5.2%
	Operating profit		16,457	5.3%	15,970	5.1%		97.0%			35,781	5.5%
	Non-operating income		1,101	0.4%	837	0.3%		76.1%			1,893	0.3%
	Interest and dividend income	134	0.0%	118	0.0%		87.8%			243	0.0%
	Non-operating expenses		916	0.3%	593	0.2%		64.8%			1,597	0.2%
	Interest expenses		372	0.1%	295	0.1%		79.2%			700	0.1%
	Ordinary profit		16,641	5.4%	16,214	5.1%		97.4%			36,078	5.6%
	Extraordinary income		2,001	0.6%	305	0.1%		15.3%			3,610	0.6%
	Extraordinary losses		2,245	0.7%	537	0.2%		23.9%			4,835	0.7%
	Profit before income taxes		16,397	5.3%	15,983	5.1%		97.5%			34,852	5.4%
	Total income taxes		4,879	1.6%	5,095	1.6%		104.4%			10,306	1.6%
	Profit attributable to		837	0.3%	168	0.1%		20.2%			1,493	0.2%
	non-controlling interests
	Profit attributable to owners of parent		10,680	3.5%	10,719	3.4%		100.4%			23,053	3.6%
	1) Segment Information
				FY2020			FY2021						FY2020
				2Q (Mar-Aug)			2Q (Mar-Aug)					Full Term (Mar-Feb)
				Amount	% of Total	Amount	% of Total		YoY			Amount	% of Total
	(Operating revenue)
	Retail operations		316,427	97.0%	321,974	97.0%		101.8%			659,977	97.1%
	Retail-peripheral operations		46,761	14.3%	48,154	14.5%		103.0%			94,786	13.9%
	Other		2,656	0.8%	2,419	0.7%		91.1%			5,297	0.8%
	Adjustment		-39,492	-12.1%	-40,704	-12.3%			-			-80,283	-11.8%
	Total		326,353	100.0%	331,844	100.0%		101.7%			679,778	100.0%
	(Operating profit)
	Retail operations		14,124	85.8%	13,519	84.7%		95.7%			31,217	87.2%
	Retail-peripheral operations		1,765	10.7%	1,984	12.4%		112.4%			3,458	9.7%
	Other		593	3.6%	530	3.3%		89.3%			1,172	3.3%
	Adjustment		-26	-0.2%	-63	-0.4%			-			-67	-0.2%
	Total		16,457	100.0%	15,970	100.0%		97.0%			35,781	100.0%
	2) Financial Results of Major Subsidiaries	(Year-on-year in parentheses)
	Company		Business / Segment					FY2020		FY2021			FY2020
					2Q (Mar-Aug)		2Q (Mar-Aug)		Full Term (Mar-Feb)
	YOU-ME CARD CO., LTD.		Finance		Operating revenue		4,702		4,577	( 97.3%)			9,393
		Retail-peripheral operations		Operating profit		1,081		1,105	( 102.2%)			2,060
	IZUMI TECHNO Co., Ltd.		Store management		Operating revenue		6,519		7,260	( 111.4%)			13,882
		Retail-peripheral operations		Operating profit		689		726	( 105.4%)			1,549
	IZUMI FOOD SERVICE CO., LTD.		Food services		Operating revenue		2,111		2,565	( 121.5%)			4,626
		Retail-peripheral operations		Operating profit		-254		2		(-)			-303
	Youme Mart Kumamoto Co., Ltd.		Retail			Operating revenue		13,906		14,110	( 101.5%)			27,975
			Retail operations		Operating profit		666		432	( 64.9%)			1,245
	Youme Mart Kitakyushu Co., Ltd.		Retail			Operating revenue		14,466		13,987	( 96.7%)			28,715
			Retail operations		Operating profit		612		476	( 77.9%)			1,033
	YOURS Co., Ltd.		Retail			Operating revenue		12,247		11,767	( 96.1%)			24,094
			Retail operations		Operating profit		355		209	( 58.9%)			582

2

												Consolidated
3) Change in Consolidated Operating Profit by Quarter						(Unit: millions of yen)
		FY2019		FY2020			FY2021
				YoY			YoY				YoY
1Q	(Mar-May)	6,592		81.5%	6,305		95.6%		7,832		124.2%
2Q	(Jun-Aug)	7,570		87.0%	10,152		134.1%		8,137		80.2%
First half total (Mar-Aug)	14,163		84.4%	16,457		116.2%		15,970		97.0%
3Q	(Sep-Nov)	7,009		102.7%	8,588		122.5%		-		-
Three quarters total (Mar-Nov)	21,173		89.7%	25,045		118.3%		-		-
4Q	(Dec-Feb)	10,715		91.9%	10,735		100.2%		-		-
Annual total (Mar-Feb)	31,888		90.4%	35,781		112.2%	Forecast	36,700		102.6%

3. Consolidated Balance Sheets				(Unit: millions of yen)
			As of Feb. 28, 2021	As of Aug. 31, 2021
			Amount	% of Total	Amount	% of Total	Change
	Total assets		489,692	100.0%	467,700	100.0%	- 21,992
	Cash and deposits		25,306	5.2%	9,132	2.0%	- 16,174
	Notes and accounts receivable - trade	42,497	8.7%	43,719	9.3%	+ 1,222
	Merchandise and finished goods	21,661	4.4%	20,855	4.5%	- 806
	Property, plant and equipment	330,539	67.5%	328,760	70.3%	- 1,778
	Leasehold and guarantee deposits	16,909	3.5%	16,474	3.5%	- 435
	Investment securities		9,876	2.0%	10,043	2.1%	+ 166
	Other		42,900	8.8%	38,714	8.3%	- 4,186
	Liabilities		244,281	49.9%	215,164	46.0%	- 29,116
	Notes and accounts payable - trade	47,367	9.7%	33,339	7.1%	- 14,027
	Interest-bearing liabilities		109,414	22.3%	104,199	22.3%	- 5,215
	Other		87,499	17.9%	77,625	16.6%	- 9,873
	Net assets		245,411	50.1%	252,535	54.0%	+ 7,124
	Treasury shares		-30	- 0.0%	-799	-0.2%	- 768
	Other		232,526	47.5%	240,274	51.4%	+ 7,748
	Non-controlling interests		12,915	2.6%	13,060	2.8%	+ 144
	*Change in the number of issued shares
				FY2020 (Mar-Feb)		FY2021 2Q
	Total number of issued shares at the beginning of the period		71,665,200		71,665,200
		at the end of the period (A)		71,665,200		71,665,200
	Treasury shares, etc.	at the beginning of the period		7,346		8,106
		at the end of the period (B)		8,106		187,224
		(Acquired during the period)		760		200,379
		(Share-based remuneration)		0		21,261
		(Cancelled during the period)		0		0
	A－B				71,657,094		71,477,976
	(Average during the period)				71,657,606		71,551,778

4. Consolidated Statements of Cash Flows			(Unit: millions of yen)
		FY2020	FY2021		FY2020
		2Q (Mar-Aug)	2Q (Mar-Aug)		Full Term (Mar-Feb)
	Cash flows from operating activities	+ 6,085	+ 1,320		+ 48,320
	Profit before income taxes	+ 16,397	+ 15,983		+ 34,852
	Non-cash loss/gain (depreciation, etc.)	+ 8,085	+ 8,506		+ 18,311
	Increase/decrease in claims and obligations related to operating activities	- 12,476	- 15,771		+ 6,045
	Income taxes and interest income	- 4,996	- 7,564		- 9,543
	Other	- 924	+ 166		- 1,345
	Cash flows from investing activities	- 5,196	- 8,298		- 6,633
	Capital investment related	- 8,233	- 8,677		- 13,921
	Other	+ 3,037	+ 379		+ 7,287
	Cash flows from financing activities	+ 391	- 9,197		- 25,361
	Interest-bearing liabilities related	+ 3,348	- 5,215		- 19,536
	Other	- 2,956	- 3,982		- 5,825
	Increase/decrease in cash and cash equivalents	+ 1,280	- 16,174		+ 16,324

3

Non-Consolidated

5. IZUMI CO., LTD.: Income Statement and Other Financial Information

1) Statement of Income

	FY2020		FY2021
	2Q (Mar-Aug)		2Q (Mar-Aug)
	Amount	% of Sales	Amount	% of Sales		YoY
Operating revenue	303,528	-	309,779	-		102.1%
Net sales	287,884	100.0%	294,369	100.0%		102.3%
Gross profit	56,730	19.7%	57,063	19.4%		100.6%
Operating revenue	15,644	5.4%	15,409	5.2%		98.5%
Real estate lease revenue	4,049	1.4%	4,040	1.4%		99.8%
Distribution center revenue	4,734	1.6%	4,578	1.6%		96.7%
Store lease joint management	4,481	1.6%	4,267	1.4%		95.2%
expense revenue
Other	2,379	0.8%	2,524	0.9%		106.1%
Operating gross profit	72,374	25.1%	72,473	24.6%		100.1%
Selling, general and	59,552	20.7%	59,822	20.3%		100.5%
administrative expenses
Personnel expenses	23,784	8.3%	23,947	8.1%		100.7%
Depreciation	6,485	2.3%	6,341	2.2%		97.8%
Rental expenses	4,869	1.7%	4,831	1.6%		99.2%
Store management expenses	5,091	1.8%	5,255	1.8%		103.2%
Utilities expenses	3,217	1.1%	3,120	1.1%		97.0%
Advertising expenses	3,844	1.3%	4,013	1.4%		104.4%
Other	12,258	4.3%	12,312	4.2%		100.4%
Operating profit	12,822	4.5%	12,651	4.3%		98.7%
Non-operating income	977	0.3%	668	0.2%		68.3%
Interest and dividend income	210	0.1%	204	0.1%		96.9%
Non-operating expenses	699	0.2%	468	0.2%		67.0%
Interest expenses	382	0.1%	320	0.1%		83.8%
Ordinary profit	13,100	4.6%	12,851	4.4%		98.1%
Extraordinary income	517	0.2%	304	0.1%		58.9%
Extraordinary losses	2,125	0.7%	510	0.2%		24.0%
Profit before income taxes	11,491	4.0%	12,646	4.3%		110.0%
Profit	7,957	2.8%	8,683	2.9%		109.1%

2) Sales Information

	FY2020		FY2021
	2Q (Mar-Aug)		2Q (Mar-Aug)
	Amount	% of Total	Amount	% of Total		YoY
(By Product)
Lifestyle	43,419	15.1%	42,885	14.6%		98.8%
Foods	114,309	39.7%	112,499	38.2%		98.4%
Directly managed stores total	157,729	54.8%	155,384	52.8%		98.5%
Tenants	94,623	32.9%	104,213	35.4%		110.1%
X-SELL Department	4,989	1.7%	4,575	1.6%		91.7%
Product supply, etc.	30,542	10.6%	30,196	10.3%		98.9%
Total	287,884	100.0%	294,369	100.0%		102.3%
(By Region)
Chugoku	122,329	42.5%	123,227	41.9%		100.7%
Kyushu	105,905	36.8%	109,240	37.1%		103.1%
Other	59,649	20.7%	61,902	21.0%		103.8%
Total	287,884	100.0%	294,369	100.0%		102.3%

(Unit: millions of yen)

FY2020

Full Term (Mar-Feb)

Amount % of Sales

634,583-

603,041 100.0%

117,561 19.5%

31,541 5.2%

8,148 1.4%

9,517 1.6%

8,851	1.5%
5,024	0.8%
149,102	24.7%
119,973	19.9%
48,025	8.0%
13,132	2.2%
9,751	1.6%
10,135	1.7%
5,824	1.0%
8,108	1.3%
24,996	4.1%
29,128	4.8%
1,571	0.3%
335	0.1%
1,280	0.2%
727	0.1%
29,420	4.9%

579 0.1%

4,455 0.7%

25,544	4.2%
17,461	2.9%

FY2020

Full Term (Mar-Feb)

Amount	% of Total
89,854	14.9%
231,751	38.4%
321,606	53.3%
208,863	34.6%
11,706	1.9%
60,866	10.1%
603,041	100.0%
252,960	41.9%
224,469	37.2%
125,611	20.8%
603,041	100.0%

*From March 2021, the Company implemented organizational changes, such as combining and reorganizing the Clothing Department and the Household Goods Department, and making them the Lifestyle Division.

Accordingly, results for FY2020 2Q and FY2020 Full Term have been adjusted to figures after these organizational changes.

4

					Non-Consolidated
3) YoY Sales at		FY2020	FY2021		FY2020
Existing Stores		2Q (Mar-Aug)	2Q (Mar-Aug)		Full Term (Mar-Feb)
(Excluding X-SELL	Lifestyle	73.2%	101.6%		77.6%
Department)	Foods	101.1%	99.1%		101.3%
	Directly managed stores total	91.7%	99.8%		93.5%
	Tenants	76.1%	111.0%		84.2%
	Total	85.4%	104.0%		89.7%
	Chugoku	90.0%	102.2%		93.0%
	Kyushu	82.1%	104.3%		87.2%
	Number of customers	87.1%	101.2%		89.4%
	Average spent per customer	105.2%	98.6%		104.5%
	Average spent per item	95.6%	102.1%		97.4%
	Number of purchases	110.0%	96.6%		107.3%

*From March 2021, the Company implemented organizational changes, such as combining and reorganizing the Clothing Department and the Household Goods Department, and making them the Lifestyle Division.

Accordingly, results for FY2020 2Q and FY2020 Full Term have been adjusted to figures after these organizational changes.

4) Gross Profit Ratio		FY2020	FY2021		FY2020
		2Q (Mar-Aug)	2Q (Mar-Aug)		Full Term (Mar-Feb)
	Lifestyle	35.4%	35.5%		35.6%
	Foods	27.2%	28.1%		27.7%
	Directly managed stores total	29.5%	30.2%		29.9%
	Tenants	9.3%	8.5%		8.6%
	X-SELL Department	25.4%	26.1%		25.8%
	Product supply, etc.	0.5%	0.4%		0.5%
	Total	19.7%	19.4%		19.5%
	(Loss rate)
	Lifestyle	6.2%	7.6%		6.3%
	Foods	2.6%	2.3%		2.5%
	Directly managed stores total	3.6%	3.8%		3.5%
	(Inventory turnover in days)
	Lifestyle	85.3	75.4		79.3
	Foods	9.3	9.2		9.2
	Directly managed stores total	30.1	27.5		28.5
	*From March 2021, the Company implemented organizational changes, such as combining and reorganizing the Clothing Department
	and the Household Goods Department, and making them the Lifestyle Division.
	Accordingly, results for FY2020 2Q and FY2020 Full Term have been adjusted to figures after these organizational changes.
5) Average Number of		FY2020	FY2021		FY2020
Employees during the		2Q (Mar-Aug)	2Q (Mar-Aug)		Full Term (Mar-Feb)
Period	Full employees	2,995	2,935		2,968
	Semi-full employees (8-hour equivalent)	6,038	5,736		5,971
	Part-time employees (8-hour equivalent)	3,864	3,631		3,973
	Total	12,896	12,302		12,912
	(% of Total)
	Full employees	23.2%	23.9%		23.0%
	Semi-full employees (8-hour equivalent)	46.8%	46.6%		46.2%
	Part-time employees (8-hour equivalent)	30.0%	29.5%		30.8%
	Total	100.0%	100.0%		100.0%
	(Indicators: Directly managed stores and X-SELL Department)
	Net sales per employee	12,617 thousand yen	13,003 thousand yen		25,815 thousand yen
	Gross profit per employee	3,703 thousand yen	3,907 thousand yen		7,683 thousand yen
	Personnel expenses per employee	1,844 thousand yen	1,947 thousand yen		3,720 thousand yen
	Personnel expenses/sales ratio	14.6%	15.0%		14.4%
	Personnel expenses/gross profit ratio	49.8%	49.8%		48.4%

*Number of full employees at the end of period: 2,971 in FY2020 2Q; 2,902 in FY2021 2Q; 2,907 in FY2020 Full Term

5