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. Company name: Summary of Consolidated Financial Results for the Six Months Ended September 30, 2014 (Based on Japanese GAAP) Toridoll.corporation Stock exchange listing: Tokyo Stock code: 3397 URL http://www.toridoll.com Representative: President, Representative Director Takaya Awata Inquiries: General Manager Accounting Department / Administration Department Yasuhisa Okuda TEL 078-200-3430 Scheduled date to file Quarterly Securities Report: November 10, 2014 Scheduled date to commence dividend payments: Preparation of supplementary material on quarterly financial results: Yes Holding of quarterly financial results meeting: Yes (for institutional investors and analysts) October 31, 2014 (Amounts less than one million yen are rounded down) 1. Consolidated financial results for the six months ended September 30, 2014 (from April 1, 2014 to September 30, 2014) (1) Consolidated financial results (cumulative) Percentages indicate year-on-year changes Net sales Operating income Ordinary income Net income Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2014 43,243 9.0 3,990 48.4 3,873 48.3 880 29.2 September 30, 2013 39,659 13.6 2,689 (36.8) 2,612 (37.1) 681 (68.5) Net income per share Diluted net income per share Yen Yen September 30, 2014 22.40 September 30, 2013 17.34 17.33 (2) Consolidated financial position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of September 30, 2014 52,380 16,014 30.0 As of March 31, 2014 49,556 15,528 30.8 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 March 31, 2014 0.00 8.00 8.00 Year ending March 31, 2015 0.00 Year ending March 31, 2015 (Forecast) 9.00 9.00 3. Forecast of consolidated financial results for the year ending March 31, 2015 (from April 1, 2014 to March 31, 2015) Percentages indicate year-on-year changes Net income Net sales Operating income Ordinary income Net income per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 84,803 8.3 7,200 43.6 6,928 40.7 1,775 109.0 45.16 1
4. Notes (1) Changes in significant subsidiaries during the six months ended September 30, 2014 (changes in specified subsidiaries resulting in the change in scope of consolidation): No (2) Application of special accounting methods for preparing quarterly consolidated financial statements: 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: Yes 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 September 30, 2014 39,296,600 shares As of March 31, 2014 39,296,600 shares Number of treasury shares at the end of the period As of September 30, 2014 9 shares As of March 31, 2014 9 shares Average number of shares during the period (cumulative from the beginning of the fiscal year) September 30, 2014 39,296,591 shares September 30, 2013 39,294,456 shares 2
Quarterly consolidated financial statements Consolidated balance sheets Assets Current assets As of March 31, 2014 As of September 30, 2014 Cash and deposits 7,635 11,253 Operating accounts receivable 1,129 1,065 Merchandise 4 Raw materials and supplies 233 209 Deferred tax assets 567 649 Other 1,234 1,163 Total current assets 10,804 14,341 Non-current assets Property, plant and equipment Buildings and structures 28,870 29,579 Accumulated depreciation (11,273) (11,989) Buildings and structures, net 17,596 17,589 Tools, furniture and fixtures 8,528 8,719 Accumulated depreciation (6,151) (6,411) Tools, furniture and fixtures, net 2,377 2,307 Leased assets 4,347 4,372 Accumulated depreciation (1,079) (1,183) Leased assets, net 3,268 3,188 Other 488 169 Total property, plant and equipment 23,731 23,254 Intangible assets 471 227 Investments and other assets Investment securities 1,287 1,382 Lease and guarantee deposits 4,623 4,643 Construction assistance fund receivables 5,841 5,708 Deferred tax assets 1,525 1,551 Other 1,286 1,292 Allowance for doubtful accounts (16) (21) Total investments and other assets 14,548 14,556 Total non-current assets 38,752 38,038 Total assets 49,556 52,380 3
As of March 31, 2014 As of September 30, 2014 Liabilities Current liabilities Accounts payable - trade 1,875 2,218 Current portion of long-term loans payable 7,367 7,714 Lease obligations 177 184 Income taxes payable 1,370 1,999 Provision for bonuses 289 312 Provision for loss on store closing 229 391 Other provision 11 2 Other 4,737 5,223 Total current liabilities 16,059 18,046 Non-current liabilities Long-term loans payable 13,039 13,414 Lease obligations 3,881 3,828 Asset retirement obligations 961 968 Other 85 107 Total non-current liabilities 17,968 18,318 Total liabilities 34,027 36,365 Net assets Shareholders' equity Capital stock 1,357 1,357 Capital surplus 1,415 1,415 Retained earnings 12,147 12,713 Treasury shares (0) (0) Total shareholders' equity 14,920 15,486 Accumulated other comprehensive income Foreign currency translation adjustment 328 221 Total accumulated other comprehensive income 328 221 Subscription rights to shares 259 275 Minority interests 20 32 Total net assets 15,528 16,014 Total liabilities and net assets 49,556 52,380 4
Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative) Consolidated statements of income (cumulative) September 30, 2013 September 30, 2014 Net sales 39,659 43,243 Cost of sales 9,588 11,022 Gross profit 30,070 32,220 Selling, general and administrative expenses 27,381 28,230 Operating income 2,689 3,990 Non-operating income Interest income 52 54 Other 67 108 Total non-operating income 120 162 Non-operating expenses Interest expenses 180 182 Other 16 98 Total non-operating expenses 196 280 Ordinary income 2,612 3,873 Extraordinary income Gain on reversal of subscription rights to shares 2 9 Reversal of provision for loss on store closing 23 Total extraordinary income 2 32 Extraordinary losses Loss on closing of stores 5 Provision for loss on store closing 44 216 Impairment loss 737 949 Loss on sales of non-current assets 26 Total extraordinary losses 787 1,193 Income before income taxes and minority interests 1,827 2,712 Income taxes - current 1,551 1,913 Income taxes - deferred (405) (90) Total income taxes 1,146 1,823 Income before minority interests 681 889 Minority interests in income 9 Net income 681 880 5
Consolidated statements of comprehensive income (cumulative) September 30, 2013 September 30, 2014 Income before minority interests 681 889 Other comprehensive income Foreign currency translation adjustment 119 (86) Share of other comprehensive income of entities accounted for using equity method 49 (21) Total other comprehensive income 169 (107) Comprehensive income 851 781 Comprehensive income attributable to Comprehensive income attributable to owners of parent 851 773 Comprehensive income attributable to minority interests 8 6
Consolidated statements of cash flows September 30, 2013 September 30, 2014 Cash flows from operating activities Income before income taxes and minority interests 1,827 2,712 Depreciation 2,047 1,363 Impairment loss 737 949 Share-based compensation expenses 30 24 Increase (decrease) in allowance for doubtful accounts (0) 5 Increase (decrease) in provision for bonuses 32 22 Increase (decrease) in provision for loss on store closing 44 160 Interest income (52) (54) Interest expenses 180 182 Loss (gain) on sales of non-current assets 26 Loss on store closings 5 Decrease (increase) in notes and accounts receivable - trade 427 62 Decrease (increase) in inventories (22) 25 Increase (decrease) in notes and accounts payable - trade (200) 344 Increase (decrease) in accrued consumption taxes (62) 544 Increase (decrease) in accounts payable - other 212 178 Increase (decrease) in accrued expenses (77) 65 Other, net 113 256 Subtotal 5,242 6,872 Interest income received 0 1 Interest expenses paid (183) (184) Income taxes paid (1,538) (1,293) Net cash provided by (used in) operating activities 3,520 5,396 Cash flows from investing activities Purchase of property, plant and equipment (4,101) (1,914) Purchase of intangible assets (52) (32) Payments for lease and guarantee deposits (182) (108) Proceeds from collection of lease and guarantee deposits 67 123 Payments of construction assistance fund receivables (540) (47) Collection of construction assistance fund receivables 202 226 Purchase of shares of subsidiaries resulting in change in scope of consolidation (310) Purchase of shares of subsidiaries and associates (136) (125) Other, net (71) (163) Net cash provided by (used in) investing activities (5,125) (2,041) Cash flows from financing activities Proceeds from long-term loans payable 5,000 5,000 Repayments of long-term loans payable (3,625) (4,277) Repayments of lease obligations (108) (88) Cash dividends paid (648) (314) Other, net 11 (1) Net cash provided by (used in) financing activities 629 317 Effect of exchange rate change on cash and cash equivalents 80 (54) Net increase (decrease) in cash and cash equivalents (895) 3,618 Cash and cash equivalents at beginning of period 6,762 7,635 Cash and cash equivalents at end of period 5,867 11,253 7