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Consolidated Financial Statements

Last update: October 25, 2023

Consolidated Quarterly Financial Statements

(1) Consolidated quarterly balance sheets

(Millions of yen)
  February 28, 2023
Amount 		August 31, 2023
Amount
ASSETS
Current assets  3,060,653 2,858,779
  Cash and bank deposits 1,670,872 1,369,714
Call Loan 23,000 35,000
Notes and accounts receivable - trade, and contract assets 422,635 444,823
Trade accounts receivable - financial services 93,490 96,449
Merchandise and finished goods 280,044 308,660
Work in process 119 132
Raw materials and supplies 2,216 2,532
Prepaid expenses 78,588 78,060
ATM-related temporary payments 102,755 90,510
Other 397,288 445,347
Allowance for doubtful accounts (10,356) (12,450)
Non-current assets  7,489,195 7,979,455
  Property and equipment  4,341,750 4,599,777
  Buildings and structures, net 1,614,830 1,681,964
Furniture, fixtures and equipment, net 463,518 495,094
Land 1,196,007 1,255,581
Lease assets, net 6,264 5,287
Right-of-use assets, net 885,645 974,350
Construction in progress 156,842 167,640
Other, net 18,640 19,858
Intangible assets 2,364,673 2,517,272
  Goodwill 1,913,017 2,035,022
Software 265,638 287,703
Other 186,016 194,545
Investments and other assets 782,772 862,406
  Investments in securities 243,215 275,916
Long-term loans receivable  14,903 14,705
Long-term leasehold deposits 321,945 312,632
Advances for store construction 770 615
Net defined benefit asset 87,088 89,364
Deferred income taxes 57,186 109,215
Other 60,627 62,940
Allowance for doubtful accounts  (2,965) (2,984)
Deferred assets  1,106 736
  Business commencement expenses 773 483
Bond issuance cost 332 253
TOTAL ASSETS 10,550,956 10,838,971
(Millions of yen)
  February 28, 2023
Amount 		August 31, 2023
Amount
LIABILITIES
Current liabilities  3,265,089 3,470,986
  Notes and accounts payable, trade 536,173 605,683
Short-term loans 143,568 154,055
Current portion of bonds 355,823 475,778
Current portion of long-term loans 145,605 203,143
Income taxes payable 25,549 24,058
Accrued expenses 276,771 258,770
Contract liabilities 211,356 200,020
Deposits received 165,501 140,244
ATM-related temporary advances 61,772 52,892
Lease obligations 121,472 134,369
Allowance for related loss on transfer of department store - 130,310
Allowance for sales promotion expenses 1,104 789
Allowance for bonuses to employees 14,389 16,213
Allowance for bonuses to Directors and Audit & Supervisory Board Members 483 274
Deposits received in banking business 810,139 790,861
Call Money  110,000 -
Other 285,377 283,520
Non-current liabilities 3,637,704 3,460,009
  Bonds  1,394,728 1,169,764
Long-term loans 936,070 868,448
Deferred income taxes 184,242 215,243
Allowance for retirement benefits to Directors and Audit & Supervisory Board Members 526 509
Allowance for stock payments 4,555 4,742
Net defined benefit liability 13,584 13,103
Deposits received from tenants and franchised stores 50,322 50,102
Lease obligations  834,913 917,288
Asset retirement obligations  155,137 158,920
Other 63,623 61,886
TOTAL LIABILITIES 6,902,794 6,930,995
NET ASSETS
Shareholders' equity 2,981,545 2,993,978
  Common stock 50,000 50,000
Capital surplus 408,926 397,285
Retained earnings 2,532,491 2,556,166
Treasury stock, at cost (9,873) (9,474)
Total accumulated other comprehensive income 493,001 724,433
  Unrealized gains (losses) on available-for-sale securities, net of taxes 34,823 44,871
Unrealized gains (losses) on hedging derivatives, net of taxes 4,799 5,123
Foreign currency translation adjustments 444,478 666,643
Remeasurements of defined benefit plans 8,899 7,795
Subscription rights to shares  49 49
Non-controlling interests  173,565 189,514
TOTAL NET ASSETS 3,648,161 3,907,975
TOTAL LIABILITIES AND NET ASSETS  10,550,956 10,838,971

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive income
Consolidated quarterly statements of income

(Millions of yen)
  Six Months Ended
August 31, 2022
Amount 		Six Months Ended
August 31, 2023
Amount
Revenues from operations 5,651,505 5,547,013
  Net sales 4,897,411 4,722,936
Cost of sales  4,084,052 3,873,366
Gross profit on sales  813,359 849,570
  Operating revenues 754,094 824,077
Gross profit from operations 1,567,453 1,673,647
  Selling, general and administrative expenses  1,332,685 1,432,531
Operating income 234,767 241,115
Non-operating income 5,210 10,494
  Interest income 1,440 4,988
Equity in earnings of affiliates 1,439 1,403
Other 2,331 4,102
Non-operating expenses  20,214 24,742
  Interest expenses  6,108 10,878
Interest on bonds 9,717 9,859
Other 4,388 4,005
Ordinary income  219,763 226,867
Special gains  7,908 8,538
  Gain on sales of property and equipment 6,323 4,571
Gain on sales of investments in securities 261 2,841
Other 1,322 1,126
Special losses  29,224 159,611
  Loss on disposals of property and equipment 7,097 6,691
Impairment loss 10,175 10,594
Loss on transfer of department store - 130,321
Loss on transfer of subsidiary - 4,866
Restructuring expenses 404 800
Other 11,547 6,336
Income before income taxes 198,447 75,795
Total Income taxes  56,343 (11,243)
  Income taxes - current  38,588 30,564
Income taxes - deferred 17,755 (41,808)
Net income 142,103 87,038
Net income attributable to non-controlling interests 6,014 6,810
Net income attributable to owners of parent  136,089 80,228

Consolidated quarterly statements of comprehensive income

(Millions of yen)
  Six Months Ended
August 31, 2022
Amount  		Six Months Ended
August 31, 2023
Amount
Net income 142,103 87,038
Other comprehensive income
  Unrealized gains (losses) on available-for-sale securities, net of taxes 5,328 10,106
Unrealized gains (losses) on hedging derivatives, net of taxes 931 319
Foreign currency translation adjustments 367,952 224,381
Remeasurements of defined benefit plans, net of taxes (1,797) (1,009)
Share of other comprehensive income (loss) of entities accounted for using equity method, net of taxes 253 (144)
Total other comprehensive income (loss) 372,667 233,654
Comprehensive income (loss) 514,771 320,692
  Comprehensive income (loss) attributable to owners of parent 506,287 311,659
Comprehensive income (loss) attributable to non-controlling interests 8,484 9,033

(3) Consolidated quarterly statements of cash flows

(Millions of yen)
  Six Months Ended
August 31, 2022
Amount  		Six Months Ended
August 31, 2023
Amount
Cash flows from operating activities
  Income before income taxes 198,447 75,795
Depreciation and amortization 180,503 197,735
Impairment loss 10,283 10,884
Amortization of goodwill 53,075 57,615
Interest income (1,440) (4,988)
Interest expenses and interest on bonds 15,826 20,737
Equity in losses (earnings) of affiliates (1,439) (1,403)
Gain on sales of property and equipment (6,323) (4,571)
Loss on disposals of property and equipment 7,097 6,691
Loss on transfer of department store - 130,321
Loss on transfer of subsidiary - 4,866
Loss (gain) on sales of investments in securities (261) (2,841)
Decrease (increase) in notes and accounts receivable, trade (50,221) (11,863)
Decrease (increase) in trade accounts receivable, financial services 1,392 (2,958)
Decrease (increase) in inventories (48,261) (15,064)
Increase (decrease) in notes and accounts payable, trade 120,898 50,298
Increase (decrease) in deposits received (64,966) (25,528)
Net increase (decrease) in bonds in banking business - (20,000)
Net increase (decrease) in deposits received in banking business (3,307) (19,278)
Net decrease (increase) in call loan in banking business (10,000) (12,000)
Net increase (decrease) in call money in banking business - (110,000)
Net decrease (increase) in ATM-related temporary accounts (3,407) 3,587
Other 11,413 (85,307)
Subtotal 409,309 242,729
Interest and dividends received 1,634 5,342
Interest paid (16,171) (20,741)
Insurance income received - 1,046
Income taxes paid (43,262) (54,175)
Income taxes refund 14,940 18,792
Net cash provided by operating activities 366,450 192,993
Cash flows from investing activities
  Acquisition of property and equipment (142,884) (158,697)
Proceeds from sales of property and equipment 13,313 12,764
Acquisition of intangible assets (48,537) (54,856)
Payment for purchase of investments in securities (22,139) (36,910)
Proceeds from sales of investments in securities 12,667 24,744
Payment for purchase of shares in subsidiaries resulting in change in scope of consolidation - (776)
Proceeds from sales of shares in subsidiaries resulting in change in scope of consolidation 938 -
Payment for sales of shares in subsidiaries resulting in change in scope of consolidation - (2,687)
Payment for long-term leasehold deposits (5,159) (7,910)
Refund of long-term leasehold deposits 10,042 9,677
Proceeds from deposits from tenants 1,280 995
Refund of deposits from tenants (1,405) (982)
Payment for acquisition of business (209) -
Payment for time deposits (1,013) (5,629)
Proceeds from withdrawal of time deposits 1,281 2,967
Other (2,406) (5,839)
Net cash used in investing activities (184,232) (223,140)
(Millions of yen)
  Six Months Ended
August 31, 2022
Amount 		Six Months Ended
August 31, 2023
Amount
Cash flows from financing activities
  Net increase (decrease) in short-term loans (3,899) 8,732
Proceeds from long-term debts 140,202 35,700
Repayment of long-term debts (201,156) (86,089)
Payment for redemption of bonds (60,000) (188,750)
Proceeds from share issuance to non-controlling shareholders - 2,368
Purchase of treasury stock (7) (7)
Dividends paid (45,998) (56,139)
Dividends paid to non-controlling interests (4,297) (4,039)
Payment for changes in ownership interests in subsidiaries that do not result in change in scope of consolidation (948) (717)
Other (9,365) (6,349)
Net cash used in financing activities (185,471) (295,290)
Effect of exchange rate changes on cash and cash equivalents 30,911 22,766
Net increase (decrease) in cash and cash equivalents 27,658 (302,671)
Cash and cash equivalents at beginning of period 1,414,890 1,674,787
Cash and cash equivalents at end of period 1,442,548 1,372,116