Bookoff : Consolidated Summary Report For the Third Quarter of the Fiscal Year Ending May 31, 2021

February 10, 2021

Consolidated Summary Report

For the Third Quarter of the Fiscal Year Ending May 31, 2021

[Japanese GAAP]

Company Name: BOOKOFF GROUP HOLDINGS LIMITED Code Number: 9278

Stock Exchange: Tokyo

URL:https://www.bookoffgroup.co.jp/en/

Representative: Yasutaka Horiuchi, President and CEOInquiries: Hirofumi Kawamoto, General Manager of Corporate Planning Department Tel: [phone]

Quarterly Report issue date:	February 12, 2021
Dividend payment date:	-
Supplementary materials for quarterly financial results:	Yes
Quarterly financial results briefing:	None
(Amounts less than one million yen are rounded down)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending May 31, 2021

(April 1, 2020 - December 31, 2020)

(1) Consolidated Results of Operations

(Percentage figures represent year-on-year changes)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Nine months ended Dec. 31, 2020 Nine months ended Dec. 31, 2019	Million yen 58,268 62,308	YoY change % (6.5) 4.6	Million yen 737 828	YoY change % (11.1) (36.1)	Million yen 1,113 1,204	YoY change % (7.6) (32.0)	Million yen (44) 559	YoY change % - (40.8)

(Note) Comprehensive income

Nine months ended Dec. 31, 2020:

¥(11) million (-%)

Nine months ended Dec. 31, 2019:

¥510 million (down 45.2%)

Net income per share	Fully diluted net income per share
Nine months ended Dec. 31, 2020 Nine months ended Dec. 31, 2019	Yen (2.53) 32.09	Yen - -

(2) Consolidated Financial Condition

Total assets	Net assets	Equity ratio
As of Dec. 31, 2020 As of Mar. 31, 2020	Million yen 42,219 41,535	Million yen 12,731 12,848	% 30.0 30.7

(Reference) Shareholders' equity

As of Dec. 31, 2020: ¥12,645 millionAs of Mar. 31, 2020: ¥12,768 million

2. Dividends

Dividend per share
End of 1Q	End of 2Q	End of 3Q	End of 4Q	End of FY	Full year
Fiscal year ended Mar. 31, 2020 Fiscal year ending May 31, 2021	Yen - -	Yen 0.00 0.00	Yen - -	Yen -	Yen 6.00	Yen 6.00
Fiscal year ending May 31, 2021 (est.)	-	6.00	6.00

(Note) Revisions to the most recently announced dividend forecast: None

3. Consolidated Forecast for the Fiscal Year Ending May 31, 2021 (April 1, 2020 - May 31, 2021)

(Percentage figures represent year-on-year changes)

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent	Net income per share
Full year	Million yen 96,000	YoY change % -	Million yen 1,300	YoY change % -	Million yen 1,650	YoY change % -	Million yen 200	YoY change % -	Yen 11.46

(Notes) Revisions to the most recently announced consolidated earnings forecasts: None

No prior-year comparisons are shown because the fiscal year ending on May 31, 2021 is a 14-month transitional fiscal period due to the change in the fiscal year.

For the 12-month period ending on March 31, 2021, we forecast consolidated sales of ¥81,000 million, operating profit of ¥1,000 million, ordinary profit of ¥1,300 million and profit attributable to owners of parent of ¥0 million.

Notes:

• 1. Significant changes in subsidiaries during the period (changes in specific subsidiaries accompanied by changes in the scope of consolidation): None

  New: - (company name)

  Excluded: - (company name)

• 2. Application of special accounting methods for presenting quarterly consolidated financial statements: None

• 3. Changes in accounting policies and accounting-based estimates, and restatements

  • (1) Changes due to revision of accounting standards: None

  • (2) Changes due to other reasons: None

  • (3) Changes in accounting-based estimates: None

  • (4) Restatements: None

• 4. Number of shares outstanding (common shares)

  (Shares)

  • (1) Shares outstanding

    (including treasury shares)

• (2) Treasury shares

• (3) Average number of shares outstanding

As of Dec. 31, 2020	20,547,413	As of Mar. 31, 2020	20,547,413
As of Dec. 31, 2020	3,100,000	As of Mar. 31, 2020	3,100,000
Nine months ended Dec. 31, 2020	17,447,413	Nine months ended Dec. 31, 2019	17,447,413

* The current summary report is not subject to the quarterly review by certified public accountants or auditing firms.

* Cautionary statement regarding forecasts of operating results and special notes

(Forward-looking statements)

Forward-looking statements in these materials are based on information available to management at the time this report was prepared and assumptions that management believes are reasonable. This report is not promises by BOOKOFF GROUP HOLDINGS regarding future performance. Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors.

(How to view supplementary materials for quarterly financial results)

Supplementary materials for the quarterly financial results will be disclosed today (February 10, 2021), using the Timely Disclosure network (TDnet).

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

Table of Contents

1. Qualitative Information on Quarterly Consolidated Financial Performance 2

(1) Explanation of Results of Operations 2

(2) Explanation of Financial Position 3

(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements 3

2. Quarterly Consolidated Financial Statements and Notes 4

(1) Quarterly Consolidated Balance Sheet 4

(2) Quarterly Consolidated Statements of Income and Comprehensive Income 6

Quarterly Consolidated Statement of Income 6

For the Nine-month Period

Quarterly Consolidated Statement of Comprehensive Income 7

For the Nine-month Period

(3) Notes to Quarterly Consolidated Financial Statements 8

(Notes Concerning the Going-Concern Premise) 8

(Significant Changes in Shareholders' Equity) 8

(Additional Information) 8

(Segment Information) 8

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BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

Forward-looking statements in this Consolidated Summary Report are based on information available to management as of the end of the third quarter.

Since the start of operations, the BOOKOFF Group has always been guided by the two corporate philosophies of "contributing to society through our business activities" and "the pursuit of employees' material and spiritual wellbeing." We are currently implementing a medium-term business plan that ends in the fiscal year ending on May 31, 2021, when we will celebrate our 30th anniversary. We are rededicating ourselves to our corporate philosophies and focusing our activities on the mission of "being a source of an enjoyable and prosperous life for many people."

Based on this mission, we will use our strengths in Japan's growing reuse market to become the leading reuse company with books as the core category. Our goal is to become the reuse store chain used by the largest number of customers as we adapt to changes in market conditions.

We have established two core strategies in order to accomplish this goal.

Core strategy I: Upgrade individual stores

We believe that upgrading reuse services in both our retail format and Internet platform is the starting point for becoming Japan's leading reuse company that serves the largest number of customers. We are working on improvements for all store format packages and services.

Core strategy II: Use all the BOOKOFF Group's strengths

In the past, the BOOKOFF Group provided separate services at stores and through channels other than stores. Now, we are creating an integrated framework that combines the platforms for members and buying and selling merchandise with systems that support these activities and with other items. In addition, every service will make full use of member and merchandise information, operational expertise, and other resources we have accumulated in every service category. The objective of these activities is to operate as "One BOOKOFF."

During the first nine months of the current fiscal year, we opened BOOKOFF SUPER BAZAAR 1-Gou Kyoto Fushimi Store and Jalan Jalan Japan Tesco Rawang, the sixth store in Malaysia.

Furthermore, we have continued to make substantial investments for improving services for app members and establishing a network of franchised stores using our e-purchasing system. Investments have been also used to create an omni-channel structure that utilizes the BOOKOFF Online website and to move forward with our O2O (online-to-offline) strategy. Conducting all business operations in a cohesive manner as "One BOOKOFF" is the objective of all these initiatives.

In the first nine months of the current fiscal year, the majority of stores directly operated by the BOOKOFF Group temporarily closed or closed only on weekends and holidays in response to the state of emergency in Japan and requests to companies to reduce or suspend business activities because of COVID-19. Most stores that altered operations are located in areas where governments made these requests. As a result, existing store sales were much lower than one year earlier. Starting in the middle of May, we reduced operating hours and sales areas at stores and began reopening most stores while taking many actions to prevent COVID-19 infections. Operations generally returned to normal in early June. Directly operated existing store sales in Japan of the BOOKOFF Group were far below sales one year earlier in April and May but sales from June to August and October were higher than one year earlier.

As a result, consolidated net sales amounted to ¥58,268 million, a 6.5% decrease from the same period of the previous fiscal year. The BOOKOFF Group recorded an operating profit of ¥737 million, a 11.1% decrease from the same period of the previous fiscal year, an ordinary profit of ¥1,113 million, a 7.6% decrease from the same period of the previous fiscal year, and a loss attributable to owners of parent of ¥44 million (compared with a profit of ¥559 million in the same period of the previous fiscal year).

The loss attributable to owners of parent was the result of the loss on COVID-19.

2

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

• (2) Explanation of Financial Position

  (Current Assets)

  Current assets at the end of the third quarter were ¥24,971 million, an increase of ¥1,266 million compared with ¥23,704 million at the end of the previous fiscal year. The major changes were a ¥705 million increase in cash and deposits and a ¥416 million increase in merchandise.

  (Non-current Assets)

  Non-current assets at the end of the third quarter were ¥17,248 million, a decrease of ¥582 million compared with ¥17,830 million at the end of the previous fiscal year. There was an increase of ¥16 million in investments and other assets, and decreases of ¥421 million in property, plant and equipment and ¥177 million in intangible assets.

  (Liabilities)

  Liabilities at the end of the third quarter were ¥29,488 million, an increase of ¥800 million compared with ¥28,687 million at the end of the previous fiscal year. This was mainly attributable to increases of ¥681 million in borrowings to procure funds from banks for responses to the COVID-19 crisis and 580 million yen in other current liabilities, and a decrease of ¥217 million in lease obligations in non-current liabilities.

  (Net Assets)

  Net assets at the end of the third quarter were ¥12,731 million, a decrease of ¥116 million compared with ¥12,848 million at the end of the previous fiscal year. Major components were third quarter loss attributable to owners of parent and dividend payments.

• (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements There are no revisions to the forecast that was announced on August 7, 2020.

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BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes

(1) Quarterly Consolidated Balance Sheet

(Unit: million yen)
FY3/2020 (As of Mar. 31, 2020)	Third quarter of FY5/2021 (As of Dec. 31, 2020)
Assets

Current assets

Allowance for doubtful accounts (0)

(0)

Non-current assets

Other, net 727

697

Intangible assets

Other 1,210

1,108

Investments and other assets

Total investments and other assets 9,553

9,570

Cash and deposits	6,094	6,800
Accounts receivable-trade	1,898	2,041
Merchandise	13,129	13,545
Other	2,583	2,583
Total current assets	23,704	24,971
Property, plant and equipment
Buildings and structures, net	4,187	3,987
Leased assets, net	1,359	1,167
Total property, plant and equipment	6,273	5,852
Goodwill	793	717
Total intangible assets	2,003	1,825
Guarantee deposits	7,561	7,479
Other	2,052	2,151
Allowance for doubtful accounts	(60)	(60)
Total non-current assets	17,830	17,248

Total assets

41,535

42,219

4

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

FY3/2020

(As of Mar. 31, 2020)

(Unit: million yen)Third quarter of FY5/2021

(As of Dec. 31, 2020)Liabilities

Current liabilities

Accounts payable-trade Short-term borrowings

Current portion of long-term borrowings Lease obligations

Income taxes payable Provision for sales rebates Provision for loss on store closings Other provisions

459

698

5,960

7,931

3,803

4,231

417

372

282

287

512

452

27

23

497

188

Other 4,738

5,318

Total current liabilities

16,697

19,502

Non-current liabilities

Long-term borrowings

Provision for loss on store closings Asset retirement obligations

Lease obligations

8,058

9

6,340 -

2,358

2,339

1,181

964

Other

381

340

Total non-current liabilities 11,990

9,985

Total liabilities

28,687

29,488

Net assets

Shareholders' equity

Share capital Capital surplus Retained earnings Treasury shares

100 6,485 8,550 (2,343)

100 6,485 8,402 (2,343)

Total shareholders' equity 12,792

12,644

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

31

73

(55)

(71)

Total accumulated other comprehensive income (24)

1

Non-controlling interests

79

85

Total net assets 12,848

12,731

Total liabilities and net assets

41,535

42,219

5

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statement of Income

(For the Nine-month Period)

(Unit: million yen)
First nine months of FY3/2020 (Apr. 1, 2019 - Dec. 31, 2019)	First nine months of FY5/2021 (Apr. 1, 2020 - Dec. 31, 2020)
Net sales	62,308	58,268

Cost of sales

24,506

22,521

Gross profit 37,801

35,747

36,972

Selling, general and administrative expenses

35,010

Operating profit 828

737

Non-operating income

Share of profit of entities accounted for using equity method

Rent revenues on facilities

Gain from installment of vending machine Gain on sales of recycling goods

Subsidy income

15

-

249

242

100

87

261

155

21

190

Other

93

77

Total non-operating income 740

754

Non-operating expenses

Interest expenses

Share of loss of entities accounted for using equity method

Rent costs on facilities Other

119

120

- 230 15

5 228 23

Total non-operating expenses 365

378

Ordinary profit

1,204

1,113

Extraordinary losses

Loss on store closings

Provision for loss on store closings Loss on retirement of non-current assets Impairment loss

Loss on disaster

46

7

27

5

117

35

30

28

31 -

Loss on COVID-19 -

778

Total extraordinary losses

250

858

Profit before income taxes 954

255

Income taxes-current

Income taxes-deferred 119

(57)

247 366

Total income taxes

347 289

Profit (loss) 587

(34)

10

Profit attributable to non-controlling interests

27

Profit (loss) attributable to owners of parent

559

(44)

6

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income

(For the Nine-month Period)

(Unit: million yen)
First nine months of FY3/2020 (Apr. 1, 2019 - Dec. 31, 2019)	First nine months of FY5/2021 (Apr. 1, 2020 - Dec. 31, 2020)
Profit (loss)	587	(34)

Other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

8

14

(31)

(19)

Share of other comprehensive income of entities accounted for using equity method (53)

27

Total other comprehensive income

(76)

22

Comprehensive income 510

(11)

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

484 25

(18)

6

7

BOOKOFF GROUP HOLDINGS LIMITED (9278)

Summary Report for the Third Quarter of May 2021 Fiscal Year

(3) Notes to Quarterly Consolidated Financial Statements

(Notes Concerning the Going-Concern Premise)

Not applicable.

(Significant Changes in Shareholders' Equity)

Not applicable.

(Additional Information)

In the first nine months of the current fiscal year, there was no additional information concerning the effects of COVID-19 and there were no significant revisions of information in the Securities Report for the previous fiscal year.

(Segment Information)

I. First nine months of FY3/2020 (Apr. 1, 2019 - Dec. 31, 2019)

This information is omitted because the Group has only a single segment.

II. First nine months of FY5/2021 (Apr. 1, 2020 - Dec. 31, 2020)

This information is omitted because the Group has only a single segment.

This financial report is solely a translation of the Company's Kessan Tanshin (including attachments) in Japanese, which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.

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