ABC-MART, INC. For the fiscal year ended February 28, 2013

Transcription

1 FACTBOOK ABCMART, INC. For the fiscal year ended February 28, 213 Contents Corporate Profile Consolidated Balance Sheets Consolidated Statements of Income 78 Consolidated Statements of Cash Flows 91 Consolidated Statements of Changes in Net Assets 11 Information by Segment and Category 12 Consolidated Profitability Indicators 13 Consol lidated Efficiency Indicators 14 Consolidated Stability Indicators 15 Stock Information 16 Securities Code: 267 / TSE 1st Section

2 Corporate Profile Corporate Profile (as of February 28 8, 213) Name of Company URL Headquarters ABCMART, INC. 19F, Shibuya Mark City West 1121 Dogenzaka, Shibuyaku, Tokyo 1543 JAPAN (Registered address: 1115 Jinnan, Shibuyaku, Tokyo 1541 JAPAN) Date of Establishment June 6, 1985 Capital \3,482 million Representative Minoru Noguchi Representative Director, President and Executive Officer Number of Employees 5,199 (4 Temporary employees and 2,44 Parttime employees included) Business Policy From a lifestyle creation company focused on shoes, into the ABCMART global shoe store Business content Domestic New ABCMART outlets will be opened to directly deliver shoes to our customers. Our ultimate aim is to establish a globally recognized store brand. Overseas Retail customers Direct delivery Order Importing, Stocking Wholesalee LaCrosse GROUP Dealers DANNER Factory Retail Local retailers Store openings planned after summer Overseas retail outlets Overseas agents Delivery Wholesale Order Maker ABC SHOE FACTORY ABCMART, INC. Importing, Stocking Consignment Consig gnment Impo orting, Stock king Wholesale Consignm ment ABCMART KOREA, INC. ABCMART TAIWAN, INC. Importing, Stocking Overseas consignment factories (China, Myanmar, Bangladesh, Italy, etc.) 1 Copyright (C) 213 ABCMART, INC. All Rights Reserved.

3 Corporate Profile History 1985 Kokusai Boeki Shoji Inc., an importandsale trading company, is established 1987 Company name changed to International Trading Corporation (ITC) 1991 ITC concludes an agency contract with Vans, Inc. for exclusive sales rights of Vans brand products in Japan 1995 ITC acquires the Hawkins trademark 1998 Hawkins Air Light and Hawkins Traveller businesses, opens new markets for businessuse shoes and walking shoes 21 SG shoes Co., Ltd. (a franchisee of ABCMART in Western Japan) is reorganized as a wholly owned subsidiary of ABC MART 24 ABCMART, INC. absorbs two of the subsidiary companies ABCMART, INC. inherits business of World Sports Plaza and starts sports apparel business 29 The first ABCMART store in Taiwan is opened 212 ABCMART, INC. acquires LaCrosse through a cash tender offer and subsequent shortform merger as a wholly owned subsidiary of ABCMART 1986 Concludes an agency contract with G.T. Hawkins Limited for exclusive sales rights in Japan 199 Retail operations added to wholesaling ABCMART Ltd. is established as a retail chain, the first ABCMART store opens (reorganized as a joint stock company in 1997) 1994 ITC acquires the rights to use the Vans trademark in Japan to develop trademark products 1996 Shifts to a sales organization focused on footwear Celebrities Takuya Kimura and Nene Otsuka are chosen to advertise Hawkins Air Cushion shoes 2 First shopping center store Initial public offering on the JASDAQ market Hawkins Sport leather sneaker are developed ABCMART, INC. opens its first store inside a shopping center 22 ITC absorbs ABCMART Co., Ltd and changes its name to ABCMART, INC. Subsidiary company ABCMART KOREA, INC. was established in South Korea ABCMART, INC. was listed on first section of the Tokyo Stock Exchange 26 Fullfledged entry into ladies footwear First ladies shop Nuovo Shibuya is opened 211 ABCMART KOREA, INC. is reorganized as a wholly owned subsidiary of ABCMART Trend of Business Performance ( million) 18, 15, 12, 9, 6, 3, 29.9% 32,634 Consolidated Net Sales ConsolidatedOperatingIncome Margin 19.1% 2.7% 19.4% 54,186 46,357 38, % 21.% 66,144 77, % 2.8% 88,692 97, ,57 127, % 21.1% 14, , % 19.1% 35.% 3.% 25.% 2.% 15.% 1.% 5.% FY2/2 FY2/3 FY2/4 FY2/5 FY2/6 FY2/7 FY2/8.% Copyright (C) 213 ABCMART, INC. All Rights Reserved. 2

4 Corporate Profile The Strength of ABCMART ABCMART is leveraging a growing product line and store network, as well as its import and sales expertise to expand share of the retail shoe market. The Company aims to establish itself as Japan s No.1 chain of dedicated shoe stores in both quality and quantity. Store Strategy Product and Brand Strategy Speedy store openings conforming to communities and trade areas Development of stores with a wide range of formats and business types Store renewal that responds smartly to market changes The accumulation of onsite excellence Maintenance, strengthening and development of house brands Development information from our overseas network Partnership with global brands Operation Strategy Boosting sales capability using POS system Taking the next step with highlevel systems Efficiency of logistic system Human Resource Development Fieldoriented Strong sales capabilities Strong leadership and teamwork Product Planning and Development Integrated Production and Sales System for House Brands Information on trends from our overseas network + Collection of raw customer feedback Partnering with Global Brands Dealing directly with makers (bulk ordering) Production at cooperating factories in Italy, China, South East Asia, etc. Enables production of appealing products at reasonable prices Enables low product prices + Promotes development of the ABCMART original models Private Brands Inhouse Brands 3 Copyright (C) 213 ABCMART, INC. All Rights Reserved.

5 Corporate Profile Distribution tion map of stores (as of Fe ebruary 28, 213) *: Number of overseas outlets (Korea, Taiwan) as of enddecember 212 Tohoku area 41 stores Hokkaido area 29 stores Korea* 127 stores Taiwan* 24 stores Kyushu, Okinawa area 82 stores Kansai area 12 stores Chugoku, Shikoku area 51 stores Chubu area 97 stores Kanto area 31 stores Number of stores by store formats NSC 69 Roadside 86 Outlets 46 Roadside stores 84 FY2/13 Total 73 (Domestic) Shopping centers 317 Commercial buildings 11 ABCMART Store Network Expansion (as of February 28, 213) (stores) 1, Number of overseas outlets* Number of domestic outlets FY2/2 FY2/3 FY2/4 FY2/5 FY2/6 FY2/ FY2/8 *: Number of overseas outlets (Korea, Taiwan) as of enddecember 212 Copyright (C) 213 ABCMART, INC. All Rights Reserved. 4

6 Consolidated Balance Sheets ( thousand) Assets Total assets 81,119,674 99,4, ,87,52 12,23, ,159,421 Current assets 4,,384,975 48,131,921 67,41,13 72,74,28 113,67,21 Cash and deposits 21,,654,129 24,64,26 38,755,377 42,167,745 68,852,158 Notes and accounts receivabletrade 1,,553,34 1,971,321 2,37,937 2,563,312 5,64,83 Inventories 14,,428,165 Merchandise and finished goods Work in process Raw materials and supplies Currency option Deferred tax assets Other 715,346 2,,34,787 17,959, ,148 2,659,312 22,664, ,175 2,425,816 23,243,775 25,747 1,2,314 1,4,547 2,54,923 32,682,63 44, ,939 1,314,421 1,166,442 3,48,723 Allowance for doubtful accounts Noncurrent assets (793) 4,,734,699 (951) 51,268,591 (4,89) 44,45,922 (6,337) 47,499,913 (23,645) 61,92,399 Property, plant and equipment 27,,599,831 28,771, ,72, ,226, ,588, Buildings and structures 12,,298,21 13,719,14 15,119,964 17,984,882 2,886,196 Accumulated depreciation (4,543,12) (5,689,719) (6,618,314) (7,924,21) (9,553,45) Buildings and structures, net 7,,755,198 8,29,42 8,51,65 1,6,671 11,332,79 Vehicles and vessels Accumulated depreciation 59,82 (212,34) 439,218 (313,213) 445,28 (352,277) Vehicles and vessels, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land 296,777 17,,22,74 126,4 19,443,979 92,931 2,511,735 (1,26,865) 1,25,869 16,827,283 3,139,826 (1,646,696) 1,493,13 17,176,451 6,266,116 (3,64,799) 2,661,316 17,483,893 Construction in progress 1,,666, , ,18 6,71 Other 1,,281,84 2,141,449 8, , ,848 Accumulated depreciation (63,13) (969,991) (1,88) (388,17) (418,561) Other, net 678,673 1,171,458 6,33 69,138 5,286 Intangible assets Right of trademark Goodwill Other 88,236 81, ,519, ,12,373 1,793,412 11,264 2,465, , ,553 6,821,74 88,236 81,516 1,76,689 1,36,555 1,56,138 Investments and other assets 12,,326,631 21,695,214 15,824,244 16,261,39 18,71,627 Investment securities Stocks of subsidiaries and affiliates Lease and guarantee deposits 127,815 1,,939, ,324 7,49,422 12,964,586 97,544 84,175 14,396,825 94,891 84,175 14,331,988 19,651 84,175 16,494,299 Other 1,,259,193 1,182,882 1,245,7 1,759,984 2,22,51 Allowance for doubtful accounts (1,) 5 Copyright (C) 213 ABCMART, INC. All Rights Reserved.

7 Consolidated Balance Sheets ( thousand) Liabilities Total liabilities 26,996,646 32,311,513 27,658,857 27,967,792 64,394,736 Current liabilities 26,,66,224 26,869,376 25,958,964 23,682,176 25,96,88 Notes and accounts payabletrade 8,,9,338 7,714,42 7,469,784 7,147,386 7,477,486 Shortterm loans payable 8,,685,162 8,311,548 4,622,515 2,59,35 4,135,826 Current portion of longterm loans payable Income taxes payable 4,,747,927 6,447,847 3,75, 5,534,427 2,252,8 6,513,447 1,2,8 7,455,27 Provision for bonuses Provision Asset retirement obligations Notes payablefacilities Other 425,964 3,,846, ,93 3,926,35 481, ,742 3,267, ,247 17,7 14,38 96,493 3,69, , ,38 17, ,279 4,114,61 Noncurrent liabilities Convertible bondtype bonds with subscription rights to shares Longterm loans payable Provision Asset retirement obligations Currency option Other Net assets Total net assets 39,422 39,422 54,123,28 5,442,137 5,, 442,137 67,88,999 1,699,893 1,261, ,693 83,428,195 4,285,616 3,55,6 133, , ,83 92,236,148 38,433,856 33,, 2,52,8 798, ,27 265,84 1,648,895 19,764,684 Shareholders' equity 53,,81,254 65,798,94 81,311,254 93,373,591 17,282,926 Capital stock 3,,482,93 3,482,93 3,482,93 3,482,93 3,482,93 Capital surplus 7,,488,686 7,488,686 7,488,686 7,488,686 7,488,686 Retained earnings 65,,157,424 77,146,432 7,34,159 82,42,496 96,311,831 Treasury stock (22,318,787) (22,319,19) (522) (522) (522) Accumulated other comprehensive income (57,443) (467,463) (898,119) (1,438,71) 2,191,141 Valuation difference on availableforsale securities Deferred gains or losses on hedges Foreign currency translation adjustment 4,749 (548,192) 17,435 (11,14) (473,793) 793) (4,182) (893,937) 937) (5,746) (1,432,324) 324) 13,432 2,177,78 78 Minority interests Total liabilities and net assets 82,216 81,119,674 1,757,522 99,4,512 3,15,6 111,87,52 3,628 12,23,941 29, ,159,421 Copyright (C) 213 ABCMART, INC. All Rights Reserved. 6

8 Consolidated Statements of Income ( thousand) FY Y2/9 FY2/1 FY2/11 FY2/12 FY2/13 Net sales 97,341,14 113,57,52 127,367,153 14,761,16 159,418,14 Cost of sales 42,667,123 49,3,5 53,86,659 59,658,395 68,19,15 Gross profit 54,673,89 64,476,552 74,28,493 81,12,62 91,39,34 Selling, general and administrative expenses 34,449,974 4,29,394 47,422,994 53,881,392 6,933,917 Packing and transportation expenses 1,52,448 1,393,218 1,694,272 1,95,419 2,21,771 Advertising expenses 4,466,331 4,87,151 6,51,271 6,476,42 6,931,745 Warehousing expenses 618,476 86,125 1,127,482 1,257,626 1,293,183 Directors' compensations, salaries and allowances 9,78,846 11,446,358 13,373,272 14,948,84 16,431,626 Bonuses 779,633 84, ,58 1,47,361 1,83,784 Provision for bonuses 425, ,93 481, ,27 64,7 Legal and employee benefits expenses 1,143,7 1,314,46 1,564,124 1,879,82 2,113,56 Rents 8,631,335 1,465,979 11,944,395 13,644,869 15,326,723 Depreciation 1,543,2 1,928,744 2,189,66 2,648,13 3,25,878 Utilities expenses 999,836 1,189,631 1,41,31 1,457,9 1,793,573 Commission fee 1,243,464 1,641,41 1,9,791 2,298,221 2,677,576 Taxes and dues 422, ,31 529, , ,623 Provision of allowance for doubtful accounts Amortization of goodwill Other 118 3,413, ,428,834 49,197 4,222,31 11, ,3 4,851,762 1,82 549,441 5,959,98 Operating income 2,223,916 24,186,158 26,857,499 27,221,227 3,375,117 Nonoperating income 785,213 1,793,97 848,252 1,736,62 977,32 Interest t income 46,971 18,33 21,3 4,751 46,729 Dividends income Foreign exchange gains Equity in earnings of affiliates Gain on valuation of derivatives House rent income 27,657 36, ,27 14, ,582 8,51 16,753 Rent income Dividends income and refund premiums of insurance 14 45, , ,74 419, ,79 Advertising medium income 95,62 81,95 68,36 6,757 57,45 Other 226, , ,84 273,225 24,76 Nonoperating expenses 1,398,53 411, , ,2 65,146 Interest expenses 113, , , ,524 74,12 Foreign exchange losses 1,94, ,59 86,52 Equity in losses of affiliates Rent expenses 157,79 198, ,22 189,469 23, ,275 Other 33,374 56, , ,99 259,858 Ordinary income 19,61,625 25,568,836 26,71,475 28,399,63 3,747,273 7 Copyright (C) 213 ABCMART, INC. All Rights Reserved.

9 Consolidated Statements of Income ( thousand) FY Y2/9 FY2/1 FY2/11 FY2/12 FY2/13 Extraordinary income 154,267 35, 4,562,13 6, Gain on sales of noncurrent assets Gain on sales of investment securities Gain on sales of subsidiaries and affiliates' stocks Income from insurance cancellation 1,51 152, ,388 15,847 3,475,693 11,21 6, Income from contract penalty Extraordinary loss 278,745 35, 357, ,82 1,37,135, 595,794 Loss on sales of noncurrent assets Loss on retirement of noncurrent assets 52,943 34,326 82,552 59, , ,733 Loss on liquidation of business Loss on valuation of golf club membership 63,467 12,359 19,22 65,595 7,75 Impairment loss 162, ,12 411, ,577 48,46 Loss on abandonment of goods 28,45 Loss on adjustment for changes of accounting standard for asset retirement t obligations Loss on disaster Donation Income before income taxes and minority interests 19,48 Income taxescurrent 8,65 Income taxesdeferred (27 Total income taxes 8,38 Income before e minority interests ests Minority interests in income (loss) 1 Net income 11,87 549,53 53,518 52,957 86,147 25,561,389 3,76,786 27,35,93 3,152,24 59,8 1,619,33 11,273,182 11,767,273 13,126,285 73,841) (21,786) 312,632 (429,211) (22,612) 85,167 1,48,517 11,585,815 11,338,61 12,95,672 15,697,869,869 17,246,351 13, , ,946 21,48 (51,225) 7,192 14,473,727 18,374,23 15,676,46 17,297,577 Copyright (C) 213 ABCMART, INC. All Rights Reserved. 8

10 Consolidated Statements of Cash Flows ( thousand) FY Y2/9 FY2/1 FY2/11 FY2/12 FY2/13 Cash flows provided by (used in) operating activities Net cash provided by (used in) operating activities 15,112,842 13,248,846 12,49,25 18,998,74 15,395,953 Income before income taxes and minority interests 19,486,147 25,561,389 3,76,786 27,35,93 3,152,24 Depreciation and amortization 1,543,2 1,928,744 2,189,66 2,648,13 3,25,878 Increase (decrease) in provision for bonuses 65,1 43,939 11,879 96,244 62,672 Increase (decrease) in allowance for doubtful accounts (4,653) 157 3,563 11,447 (12,264) Interest and dividends income (48,375) (18,973) (125,976) (41,475) (47,453) Interest expenses 113, , , ,524 74,12 Foreign exchange losses (gains) 1,16,55 (3,26) 198,971 2,732 (14,166) Loss (gain) on valuation of securities Loss (gain) on valuation of derivatives Loss (gain) on sales of investment securities (1,51) (15,847) (942,582) 16,582 (16,753) Loss (gain) on sales of stocks of subsidiaries and affiliates Loss (gain) on sales and retirement of noncurrent assets 52,928 34,326 (3,475,693) (782,37) 11, ,531 Impairment loss 162, ,12 411, ,577 48,46 Loss on adjustment for changes of accounting standard for asset retirement obligations Loss on valuation of golf club memberships 63,467 12, ,53 Dividends income and refund premiums of insurance (145,835) (59,193) Income from contract penalty Gain on cancellation of insurance contract (152,757) (35,) Equity in (earnings) losses of affiliates ates Decrease (increase) in notes and accounts receivabletrade (593,425) (692,27) (581,74) 391,22 (47,768) (298,79) (62,481) Decrease (increase) in inventories (1,121,192) (3,35,57) (4,879,416) (86,55) (5,362,64) Increase (decrease) in notes and accounts payabletrade 1,814,661 (714,29) (331,979) (191,642) (915,849) Other, net 913,795 (298,165) 242,726 1,44, ,693 Subtotal 23,37,336 21,998,184 24,54,986 29,846,36 27,633,48 Interest and dividends income received 34,116 23,34 117,884 33,842 32,92 Proceeds from dividends income from affiliates accounted for by equity method Interest expenses paid (111,922) 14,22 (146,426) 187,23 (167,167) (138,66) (76,415) Payments for loss on disaster Payments for donation Proceeds from contract penalty Income taxes paid (8,116,688) 35, (9,8,254) (12,188,881) (37,552) (52,957) (1,652,922) (12,193,959) 9 Copyright (C) 213 ABCMART, INC. All Rights Reserved.

11 Consolidated Statements of Cash Flows ( thousand) FY Y2/9 FY2/1 FY2/11 FY2/12 FY2/13 Cash flows provided by (used in) investing activities Net cash provided by (used in) investing activities (6,394,782) (12,16,736) 8,68,521 (1,515,422) (17,23,674) Payments into time deposits (53,46) (177,11) (5,4) (5,4) Proceeds from withdrawal of time deposits Purchase of investment securities Proceeds from sales of investment securities 14,174 22,74 (49,759) 74, ,93 5,4 12,526 Purchase of property, p plant and equipment (4,176,958) (5,232,683) (3,257,758) (5,615,864) (4,93,447) Proceeds from sales of property, plant and equipment Purchase of intangible assets (314,63) (99,38) 3,589,489 (453,351) 17,799 (27,396) 5,137 (419,56) Proceeds from bargain cancellation of property, assets Payments for store removal (3,162) 1,66,64 (11,691) (44,543) (78,681) (55,935) Purchase of stocks of subsidiaries and affiliates Proceeds from sales of stocks of subsidiaries and affiliates Purchase of insurance funds (1,65) (6,832,258) (1,253) 1,16, Proceeds from maturity and cancellation of insurance funds 48,73 67,285 Payments of loans receivable (265,15) (252,867) (35,5) (315,5) (185,) Collection of loans receivable 13,763 27,279 4,46 57,696 83,62 Purchase of investments in subsidiaries Purchase of investments in subsidiaries resulting in change in scope of consolidation Payments for lease and guarantee deposits (2,461,36) (2,175,219) (2,415,938) (3,435,971) (1,527,365) (1,999,115) (2,562,575) Proceeds from collection of lease and guarantee deposits 54 42,12 332, , ,58 1,11,24 Other payments (821,576) (83,34) (21,247) (118,699) (24,663) Other proceeds 678, ,57 63,565 38,98 138,55 Net cash provided by (used in) financing activities Cash flows provided by (used in) financing activities (4,463,38) 1,923,29 (6,467,879) (4,972,811) 28,29,995 Net increase (decrease) in shortterm loans payable (1,978,323) (591,667) (3,61,661) (2,18,47) 864,471 Proceeds from longterm loans payable Repayment of longterm loans payable Cash dividends paid (2,484,723) 5,, (2,484,719) (2,861,186) 1,, (9,252,8) (3,69,464) (2,259,6) (3,384,43) Purchase of treasury stock Proceeds from issuance of bonds with subscription rights to shares Other payments Effect of exchange rate change on cash and cash equivalents (261) (38,788) (322) 58,335 (5,31) (38,339) (2,499) (88,91) 33,, (11,371) 378,867 Net increase (decrease) in cash and cash equivalents 4,215,962 3,69,735 14,52,327 3,422,379 26,781,142 Cash and cash equivalents at beginning of period 17,23 534,534 21,446, ,516, ,568, ,99, Cash and cash equivalents at end of period 21,446,497 24,516,232 38,568,56 41,99,939 68,772,82 Copyright (C) 213 ABCMART, INC. All Rights Reserved. 1

12 Consolidated Statements of Changes in Net Assets ( thousand) FY2/12 FY2/13 Shareholders' equity Capital stock Balance at the beginning of current period 3,482,93 3,482,93 Total changes of items during the period Balance at the end of current period 3,482,93 3,482,93 Capital surplus Balance at the beginning of current period 7,488,686 7,488,686 Total changes of items during the period Balance at the end of current period 7,488,686 7,488,686 Retained earnings Balance at the beginning of current period 7,34,159 82,42,496 Dividends from surplus (3,614,124) (3,388,241) Net income 15,676,46 17,297,577 Total changes of items during the period 12,62,336 13,99,335 Balance at the end of current period 82,42,496 96,311,831 Treasury stock Balance at the beginning of current period (522) (522) Total changes of items during the period Balance at the end of current period (522) (522) Total shareholders' equity Balance at the beginning of current period 81,311,254 93,373,591 Dividends from surplus (3,614,124) (3,388,241) Net income 15,676,46 17,297,577 Total changes of items during the period 12,62,336 13,99,335 Balance at the end of current period 93,373,591 17,282,926 ( thousand) FY2/12 FY2/13 Accumulated other comprehensive income Valuation difference on availableforsale securities Balance at the beginning of current period (4,182) (5,746) Net changes of items other than shareholders' equity (1,563) 19,178 Total changes of items during the period (1,563) 19,178 Balance at the end of current period (5,746) 13,432 Foreign currency translation adjustment Balance at the beginning of current period (893,937) (1,432,324) Net changes of items other than shareholders' equity (538,387) 3,61,33 Total changes of items during the period (538,387) 3,61,33 Balance at the end of current period (1,432,324) 2,177,78 Total accumulated other comprehensive income Balance at the beginning of current period (898,119) (1,438,71) Net changes of items other than shareholders' equity (539,951) 3,629,212, Total changes of items during the period (539,951) 3,629,212 Balance at the end of current period (1,438,71) 2,191,141 Minority interests Balance at the beginning of current period 3,15,6 3,628 Net changes of items other than shareholders' equity (2,714,431) (1,12) Total changes of items during the period (2,714,431) (1,12) Balance at the end of current period 3,628 29,616 Total net assets Balance at the beginning of current period 83,428,195 92,236,148 Dividends from surplus (3,614,124) (3,388,241) Net income 15,676,46 17,297,577 Net changes of items other than shareholders' equity (3,254,382) 3,619,2 Total changes of items during the period 8,87,953 17,528,535 Balance at the end of current period 92,236,148 19,764, Copyright (C) 213 ABCMART, INC. All Rights Reserved.

13 Information by Segment and Category Results by Segment ( thousand) FY2/9 FY2/1 FY2/11 FY2/12 FY2/13 Net sales 97,341, ,57,52 127,367,153 14,761,16 159,418,14 Domestic 9,367,31 13,26, ,442, ,856, ,773,827 Overseas 6,973,712 1,48,56 14,924,56 18,94,773 27,644,313 Operating income 2,223,916 24,186,158 26,857,499 27,221,227 3,375,117 Domestic 18,891,32, Overseas 1,333,832 Elimination (1,236 Assets 81,119,674 Domestic 76,361,828 Overseas 7,81,551 Elimination (3,43,75 22,526,414, 23,926,382, 24,617,52, 28,759,548, 1,7,792 2,863,41 2,612,929 1,611,556 6) (41,47) 67,76 (9,222) 4, ,4, ,87,52 12,23, ,159,421 88,133,778 95,411,837 11,67, ,687,435 14,247,929 15,718,519 18,655,296 39,97,224 ) (2,981,196) (43,33) (58,767) (625,238) (%) FY2/9 FY2/1 FY2/11 FY2/12 FY2/13 Composition ratio to net sales Domestic Overseas Operating income margin Domestic Overseas Note: Reporting segment names were changed from FY2/13 As a result, segment results prior to FY2/12 have been restated to conform to the new segment names Sales by Category (%) Ratio of inhouse products (domestic)* ( thousand) 43.3 FY2/ FY2/ FY2/ FY2/ FY2/13 Net sales 97,341,14 113,57,52 127,367,153 14,761,16 159,418,14 Sports 5,8 886, ,419,88 61,613, ,99,762 73,942,556 Leather Casual 14,616,85 18,442,962 21,627,69 23,2,585 3,58,924 Ladies' 11,472,951 15,32,255 17,296,974 18,232,412 21,833,829 Business 7,697,624 8,478,18 9,386,321 1,467,999 1,626,973 Kids 4,891,561 6,283,22 6,925,666 7,496,787 8,547,85 Sandals 3,38,616 2,998,426 3,232,967 4,319,874 4,72,643 Others 4,467,544 5,582,288 7,284,138 8,133,594 9,76,127 *Note: Inhouse products = Private brands + Inhouse brands Copyright (C) 213 ABCMART, INC. All Rights Reserved. 12

14 Consolidated Profitability Indicators ( million) FY2/9 Net sales 97,341 Gross profit 54,673 SG&A expenses 34,449 Operating income 2,223 Ordinary income 19,61 Net income 11,87 FY2/1 FY2/11 FY2/12 FY2/13 113,57 127,367 14, ,418 64,476 74,28 81,12 91,39 4,29 47,422 53,881 6,933 24,186 26,857 27,221 3,375 25,568 26,71 28,399 3,747 14,473 18,374 15,676 17,297 (%) FY2/9 Gross profit on net sales 56.2 SG&A expenses ratio 35.4 Operating income margin 2.8 Ordinary income margin 2.1 Net income margin 11.4 FY2/1 FY2/11 FY2/12 FY2/ Gross profit on net sales=gross profit/net sales SG&A expenses ratio=sg&a expenses/net sales Operating income margin=operating income/net sales Ordinary income margin=ordinary income/net sales Net income margin=net income/net sales ( million) 18, Gross profit on net sales (%) Net sales Gross profit Gross profit on net sales 8. Operating income margin ( million) (%) Net sales Operating income Operating income margin 18, 3. 15, 12, 6. 15, 12, , 4. 9, 15. 6, 3, 2. 6, 3, ( million) 18, Ordinary income margin (%) Net sales Ordinary income Ordinary income margin 25. ( million) 18, Net income margin (%) Net sales Net income Net income margin 2. 15, 12, 9, 6, 3, , 12, 9, 6, 3, Copyright (C) 213 ABCMART, INC. All Rights Reserved.

15 Consolidated Efficiency Indicators (times) FY2/9 Total assets turnover 1.2 Noncurrent assets turnover 2.39 Current assets turnover 2.41 FY2/1 FY2/11 FY2/12 FY2/ (days) FY2/9 Inventories turnover 54.1 Accounts receivable turnover 5.82 Accounts payable turnover FY2/1 FY2/11 FY2/12 FY2/ Total assets turnover=net aales/total assets Noncurrent assets turnover=net sales/noncurrent assets Current assets turnover=net sales/current assets Inventories turnover=inventories/net salesx365 Accounts receivable turnover=accounts receivable/net salesx365 Accounts payable Turnover=Accounts payable/net salesx365 (times) Noncurrent assets turnover (times) Current assets turnover (days) Inventories turnover (days) Accounts receivable turnover Copyright (C) 213 ABCMART, INC. All Rights Reserved. 14

16 Consolidated Stability Indicators ( million) FY2/9 Equity 53,32 Total assets 81,119 Noncurrent assets 4,734 Current assets 4,384 Current liabilities 26,66 Interestbearing debt 8,685 FY2/1 FY2/11 FY2/12 FY2/13 65,331 8,413 91,935 19,474 99,4 111,87 12,23 174,159 51,268 44,45 47,499 61,92 48,131 67,41 72,74 113,67 26,869 25,958 23,682 25,96 13,311 9,633 8,267 4,641 (%) FY2/9 Equity ratio 65.7 D/E ratio 16.3 Fixed ratio 76.4 Current ratio ROA 14.5 ROE 22.5 FY2/1 FY2/11 FY2/12 FY2/ Interestbearing debt=shortterm loans payable+current portion of longterm loans payable+longterm loans payable +Convertible bondtype bonds with subscription rights to shares Equity ratio=equity/total assets Current ratio=current assets/current liabilities D/E ratio=interestbearing debt/equity ROA=Net income/average total assets Fixed ratio=noncurrent assets/equity ROE=Net income/average equity ( million) 2, Equity ratio Equity Total assets Equity ratio (%) 1. ( million) 15, D/E ratio Equity Interestbearing debt D/E ratio (%) 4. 16, 8. 12, , 8, , 6, , 2.. 3, ( million) 2, Total assets ROA ROA (%) 2. ( million) 15, Equity ROE ROE (%) 3. 16, 12, 8, 4, , 9, 6, 3, Copyright (C) 213 ABCMART, INC. All Rights Reserved.

17 Stock Information Per Share Indicators ( ) Stock price at term end Closing stock price range for the last 12 months 2,145 1,843,87 2,935 1,7383,15 3,255 2,3863,645 2,863 2,6673,375 3,235 2,7273,785 Earnings per share (EPS) Diluted EPS Bookvalue per share (BPS) , , , Dividend per share (DPS) ( * ) Note: * Inclusive of 1 year commemorative listing dividend of \1 Status of Major Shareholders Top 1 Shareholders Masahiro Miki EM Planning LLC Michiko Miki CBNYORBIS SICAV The Chase Manhattan Bank Northern Trust Company AVFC Re Fidelity Funds Northern Trust Company (AVFC) Sub Account American Client The Master Trust Bank of Japan, Ltd. (trust account) Japan Trustee Services Bank, Ltd. (trust account) BNY for Tax Treaty Jasdec Omnibus No.2 Note: In addition to the above, ABCMART, INC. holds 164 shares (.%) in treasury stock. As of February 28, 213 Number of Shares (thousand shares) Shareholding Ratio (%) 24, , , , , , , Breakdown of Types of Shareholders Individuals and others Other Japanese companies Financial instruments business operators Foreign institutions and others Financial institutions FY2/ % 22.49% 19.27% 5.4%.71% FY2/ % 19.14% 19.26% 9.67%.46% FY2/ % 21.28% 19.26% 8.%.15%.% 2.% 4.% 6.% 8.% 1.% Copyright (C) 213 ABCMART, INC. All Rights Reserved. 16

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