SHIMAMURA : (Delayed) Summary of Consolidated Financial Results for the Three Months Ended May 20, 2021(Based on Japanese GAAP)

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.

Summary of Consolidated Financial Results for the Three Months Ended May 20, 2021 (Based on Japanese GAAP)

June 28, 2021

Company name:	SHIMAMURA Co.,Ltd.
Stock exchange listing:	Tokyo
Stock code:	8227	URL https://www.shimamura.gr.jp/
Representative:	President and Representative Director	Makoto Suzuki
Inquiries:	Planning Section General Manager	Makoto Oota	TEL [phone]
Scheduled date to file Quarterly Securities Report:	June 29, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended May 20, 2021 (from February 21, 2021 to May 20, 2021)
(1) Consolidated operating results (cumulative)						Percentages indicate year-on-year changes
	Net sales		Operating profit		Ordinary profit	Profit attributable to
			owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
Three months ended May 20, 2021	142,539		33.2	13,019		-	13,299		-	8,875		-
Three months ended May 20, 2020	106,987		(19.9)	(1,281)		-	(1,092)		-	(1,221)		-
	Earnings per share		Diluted earnings per share
			Yen			Yen
Three months ended May 20, 2021			241.51				-
Three months ended May 20, 2020			(33.22)				-
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen				%
As of May 20, 2021	455,130	388,920				85.5
As of February 20, 2021	451,798	384,388				85.1

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 February 20, 2021	-	100.00	-	120.00	220.00
Year ending February 20, 2022	-
Year ending February 20, 2022 (Forecast)		110.00	-	110.00	220.00

3. Forecast of consolidated financial results for the year ending February 20, 2022 (from February 21, 2021 to February 20, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Six months ending	273,430	7.5	19,654	23.0	19,826	21.1	13,098	24.4	356.41
August 20, 2021
Full year	554,837	2.3	38,646	1.6	39,594	0.5	26,277	0.4	715.03

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4. Notes

(1) Changes in significant subsidiaries during the three months ended May 20, 2021

	(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:	Yes
(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:	No
	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 May 20, 2021	36,913,299	shares	As of February 20, 2021	36,913,299	shares
Number of treasury shares at the end of the period
	As of May 20, 2021	164,435	shares	As of February 20, 2021	163,942	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended May 20, 2021	36,748,956	shares	Three months ended May 20, 2020	36,750,329	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of February 20, 2021	As of May 20, 2021
Assets
Current assets
Cash and deposits	18,486	27,071
Accounts receivable - trade	6,622	13,205
Securities	193,000	176,000
Merchandise	50,612	59,391
Other	7,649	4,309
Total current assets	276,371	279,978
Non-current assets
Property, plant and equipment
Buildings and structures, net	87,868	88,406
Land	49,148	49,168
Other, net	2,642	2,403
Total property, plant and equipment	139,659	139,978
Intangible assets
Other	903	888
Total intangible assets	903	888
Investments and other assets
Guarantee deposits	19,733	19,273
Other	16,333	16,212
Allowance for doubtful accounts	(1,201)	(1,201)
Total investments and other assets	34,865	34,284
Total non-current assets	175,427	175,151
Total assets	451,798	455,130
Liabilities
Current liabilities
Accounts payable - trade	24,024	35,103
Income taxes payable	10,996	4,650
Provision for bonuses	4,760	4,532
Provision executive officers' bonuses	-	11
Provision for point card certificates	333	73
Other	18,510	12,968
Total current liabilities	58,625	57,340
Non-current liabilities
provision for part-time employees retirement	1,071	1,081
Provision for retirement benefits for directors (and other	115	115
officers)
Provision for executive officers' retirement benefits	137	147
Retirement benefit liability	1,332	1,356
Asset retirement obligations	5,824	5,862
Other	304	304
Total non-current liabilities	8,785	8,868
Total liabilities		67,410	66,209

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			(Millions of yen)
		As of February 20, 2021	As of May 20, 2021
Net assets
Shareholders' equity
Share capital	17,086	17,086
Capital surplus	18,637	18,637
Retained earnings	346,301	350,767
Treasury shares	(1,411)	(1,417)
Total shareholders' equity	380,614	385,074
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,912	4,006
Deferred gains or losses on hedges	16	7
Foreign currency translation adjustment	(132)	(154)
Remeasurements of defined benefit plans	(22)	(13)
Total accumulated other comprehensive income	3,773	3,846
Total net assets	384,388	388,920
Total liabilities and net assets		451,798	455,130

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		May 20, 2020	May 20, 2021
Net sales	106,987	142,539
Cost of sales	74,275	93,710
Gross profit	32,712	48,829
Operating revenue	198	255
Operating gross profit	32,911	49,085
Selling, general and administrative expenses	34,192	36,065
Operating profit (loss)	(1,281)	13,019
Non-operating income
Interest income	53	45
Dividend income	22	34
Gain on sales of investment securities	-	4
Gain on sales of packaging materials	26	31
Compensation income	140	6
Foreign exchange gains	-	121
Miscellaneous income	21	37
Total non-operating income	264	280
Non-operating expenses
Loss on processed gift certificates	0	0
Foreign exchange losses	67	-
Miscellaneous loss	7	0
Total non-operating expenses	75	1
Ordinary profit (loss)	(1,092)	13,299
Extraordinary income
Subsidies for employment adjustment	-	0
Total extraordinary income	-	0
Extraordinary losses
Loss on sales and retirement of non-current assets	45	46
Impairment loss	48	92
Loss on disaster	78	22
Loss on valuation of investment securities	176	114
Total extraordinary losses	349	275
Profit (loss) before income taxes	(1,441)	13,024
Income taxes	(220)	4,149
Profit (loss)	(1,221)	8,875
Profit (loss) attributable to owners of parent		(1,221)	8,875

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