FamilyMart

IR Up To Date May 16, 2014-01

Notice Regarding the Recording of Extraordinary Income and Extraordinary Loss as well as the Revision of Earnings Forecasts

May 16, 2014

Notice Regarding the Recording of Extraordinary Income and Extraordinary Loss as well as the Revision of Earnings Forecasts

FamilyMart Co., Ltd. ("FamilyMart" or "the Company") on May 16th, 2014, announced the completion of all procedures related to the sale of shares and details of an anticipated gain on the sale of shares as extraordinary income. On March 28, 2014, FamilyMart issued a press release, "Notice Regarding Change in Equity-Method Affiliate (Sale of Shares)," outlining details of a resolution concerning the sale of all of the Company's shares in BGFretail Co., Ltd. ("BGFretail"), an equity-method affiliate. This follows BGFretail's decision to conduct an initial public offering on the KOSPI Market of the Korea Exchange.

 

In light of recording this extraordinary income as well as an extraordinary loss, details as follows, FamilyMart has also decided to revise its earnings forecasts previously announced on April 8, 2014.

1. Details of the Sale of Shares and Extraordinary Income

FamilyMart plans to record a gain on the sale of shares as extraordinary income for the first quarter of the fiscal year ending February 28, 2015 as follows.

(1)Number of shares 6,160,030 shares
(2)Date of sale of shares May 16, 2014
(3)Sales price ¥25.1 billion
(4)Gain on the sale of shares (non-consolidated) ¥23.0 billion
(consolidated) ¥15.4 billion Note: The cost of sales differs due to the application of the equity method.

Following the sale of shares, BGFretail will cease to be an equity-method affiliate of the Company.

2. Revision of Earnings Forecasts

(1) Revision of consolidated earnings forecasts for the fiscal year ending February 28, 2015

1) Second quarter cumulative period (March 1, 2014 to August 31, 2014)

Operating revenues
(¥ million)
Operating income
(¥ million)
Ordinary income
(¥ million)
Net income
(¥ million)
Net income per share
Previous forecast (A) ¥191,200 ¥26,200 ¥27,100 ¥12,800 ¥134.84
Revised forecast (B) ¥191,200 ¥26,200 ¥27,100 ¥22,800 ¥240.19
(B-A) ¥10,000
Percentage change (%) 78.1%
(Reference) Results for the corresponding period of the previous fiscal year (second quarter cumulative period of the fiscal year ended February 28, 2014) ¥175,088 ¥25,468 ¥27,507 ¥14,065 ¥148.17

2) Full fiscal year (March 1, 2104 to February 28, 2015)

Operating revenues
(¥ million)
Operating income
(¥ million)
Ordinary income
(¥ million)
Net income
(¥ million)
Net income per share
Previous forecast (A) ¥386,300 ¥46,000 ¥48,000 ¥20,000 ¥210.69
Revised forecast (B) ¥386,300 ¥46,000 ¥48,000 ¥25,500 ¥268.63
(B-A) ¥5,500
Percentage change (%) 27.5%
(Reference) Results for the corresponding period of the previous fiscal year(fiscal year ended February 28, 2014) ¥345,603 ¥43,310 ¥47,315 ¥22,611 ¥238.19

(2) Revision of non-consolidated earnings forecasts for the fiscal year ending February 28, 2015

1) Second quarter cumulative period (March 1, 2014 to August 31, 2014)

Operating revenues
(¥ million)
Operating income
(¥ million)
Ordinary income
(¥ million)
Net income
(¥ million)
Net income per share
Previous forecast (A) ¥157,600 ¥23,400 ¥25,400 ¥12,700 ¥133.79
Revised forecast (B) ¥157,600 ¥23,400 ¥25,400 ¥27,000 ¥284.43
(B-A) ¥14,300
Percentage change (%) 112.6%
(Reference) Results for the corresponding period of the previous fiscal year (second quarter cumulative period of the fiscal year ended February 28, 2014) ¥145,482 ¥22,990 ¥25,222 ¥13,713 ¥144.46

2) Full fiscal year (March 1, 2104 to February 28, 2015)

Operating revenues
(¥ million)
Operating income
(¥ million)
Ordinary income
(¥ million)
Net income
(¥ million)
Net income per share
Previous forecast (A) ¥316,800 ¥39,600 ¥41,800 ¥18,000 ¥189.62
Revised forecast (B) ¥316,800 ¥39,600 ¥41,800 ¥27,800 ¥292.86
(B-A) ¥9,800
Percentage change (%) 54.4%
(Reference) Results for the corresponding period of the previous fiscal year(fiscal year ended February 28, 2014) ¥287,443 ¥37,890 ¥40,743 ¥21,402 ¥225.46

(3) Reasons for the revision

In addition to the extraordinary income identified in the previous paragraph, FamilyMart is anticipating losses totaling ¥7.3 billion in connection with various outlays including the replacement of store systems. Taking each of the aforementioned factors into consideration, the Company has decided to revise its previously announced consolidated and non-consolidated earnings forecasts.

 

Note: The above forecasts are made based on information available to us at the time of compilation. Actual results may differ significantly depending on various factors.

Top of page