News Releases

Oct. 1, 2009

Notification of downward revision in business performance forecasts accompanying reversal of deferred tax assets

FamilyMart Co., Ltd. has decided to implement a reversal of deferred tax assets for the fiscal year ending February 28, 2010. As a consequence, the business performance forecasts for the current term that were issued on April 9, 2009, have been revised downward as indicated hereunder.

1. Reversal of deferred tax assets

In view of recent business performance trends, the management of the Company decided to implement a reversal of a certain portion of the Company's deferred tax assets in the second quarter of the current term, in order to maintain the financial soundness of the Company. As a result, we recognized deferred income taxes in the amount of ¥3,755 million (tax expenses) on a non-consolidated basis.

This reversal of deferred tax assets corresponds mainly to reserves for losses on equity investments in subsidiaries and affiliated companies, and the recognized amount is treated as an elimination for the presentation of financial statements on a consolidated basis. Accordingly, the reversal will have no effect on the Company's consolidated performance results.

2. Downward revision of business performance forecasts for fiscal 2009
(ending February 28, 2010)

(1) Revisions in performance forecasts on a consolidated basis

a. For fiscal 2009 first-half period (March 1 to August 31, 2009)

(Millions of yen)

  Total Operating Revenues Operating Income Ordinary Income Net Income Earnings per Share
Previous forecast (A)
(Released April 9, 2009)
147,100 21,900 23,200 11,600 ¥121.71
Current estimates (B) 143,350 19,600 20,900 9,850 ¥103.35
Decrease (B-A) (3,750) (2,300) (2,300) (1,750) -
Percentage change (2.5%) (10.5%) (9.9%) (15.1%) -
Figure for first half of previous term (to Aug. 31, 2008) 147,020 21,689 23,117 11,745 ¥123.22

b. For the full term (March 1, 2009 to February 28, 2010)

(Millions of yen)

  Total Operating Revenues Operating Income Ordinary Income Net Income Earnings per Share
Previous forecast (A)
(Released April 9, 2009)
287,500 36,700 39,500 18,800 ¥197.26
Current forecast (B) 281,400 32,700 35,100 15,000 ¥157.39
Decrease (B-A) (6,100) (4,000) (4,400) (3,800) -
Percentage change (2.1%) (10.9%) (11.1%) (20.2%) -
Figure for previous term (to Feb. 28, 2009) 287,342 36,532 39,478 16,451 ¥172.59

(2) Revisions in performance forecasts on a non-consolidated basis

a. For fiscal 2009 first-half period (March 1 to August 31, 2009)

(Millions of yen)

  Total Operating Revenues Operating Income Ordinary Income Net Income Earnings per Share
Previous forecast (A)
(Released April 9, 2009)
124,700 21,000 22,500 11,300 ¥118.55
Current estimates (B) 121,500 18,250 19,850 6,000 ¥62.95
Decrease (B-A) (3,550) (2,750) (2,650) (5,300) -
Percentage change (%) (2.8%) (13.1%) (11.8%) (46.9%) -
Figure for first half of previous term (to Aug. 31, 2008) 120,423 20,282 22,190 10,513 ¥110.29

b. For the full term (March 1, 2009 to February 28, 2010)

(Millions of yen)

  Total Operating Revenues Operating Income Ordinary Income Net Income Earnings per Share
Previous forecast (A)
(Released April 9, 2009)
241,400 34,300 36,600 17,600 ¥184.65
Current forecast (B) 233,800 29,700 32,000 10,300 ¥108.06
Decrease (B-A) (7,600) (4,600) (4,600) (7,300) -
Percentage change (3.1%) (13.4%) (12.6%) (41.5%) -
Figure for previous term (to Feb. 28, 2009) 236,133 33,592 36,466 14,265 ¥149.65

3. Reasons for downward revision of forecasts

Looking at the Company's business performance on a non-consolidated basis for the six-month first-half period of fiscal 2009, sales failed to reach our target, due partly to the general slackness of consumer spending and partly to the relative lack of fine weather in the summer, as a result of which "summer special" items sold poorly. Consequently, business performance figures as a whole fell below our forecasts issued in April. In addition, as noted above, the Company was obliged to implement a reversal of a certain portion of its deferred tax assets.

In view of our expectations that consumer spending will remain sluggish for some time to come, we have revised downward our estimates for business performance for the first half of fiscal 2009 and our forecasts for the full term, both on a non-consolidated basis.

Business performance forecasts on a consolidated basis have also been revised downward, largely as a result of the abovementioned factors affecting the non-consolidated performance.

Note: The above business performance forecasts are based on information available to the Company's management as of the time of writing, and actual figures may differ substantially from these forecasts by reason of a variety of factors.

4. Dividend payment forecasts

No change has been made to the Company's forecasts for dividend payments. The Company plans to pay an interim dividend of ¥35 per share and a term-end dividend of ¥35 per share, for an annual dividend of ¥70 per-share.

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