Belc : (DELAYED)Consolidated Financial Results for the Nine Months Ended November 30, 2021

Consolidated Financial Results

for the Nine Months Ended November 30, 2021

[Japanese GAAP]

January 7, 2022

Company name: Belc CO., LTD.

Stock exchange listing: Tokyo Stock Exchange

Code number: 9974

URL: https://www.belc.jp

Representative: Issei Harashima, President and Representative Director

Contact: Hideo Ueda, Senior Managing Director; Associate GM of Compliance Office; Responsible for Finance and Accounting Department and Operations Support Department, and in charge of Legal Affairs

Phone: [phone]

Scheduled date of filing quarterly securities report: January 11, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: Not available

Schedule of quarterly financial results briefing session: Not scheduled

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended November 30, 2021 (March 1, 2021 - November

30, 2021)
(1) Consolidated Operating Results (Cumulative)			(% indicates changes from the previous corresponding period.)
		Operating income			Operating profit		Ordinary profit		Profit attributable to
						owners of parent
	Nine months ended	Million yen	%		Million yen	%		Million yen	%		Million yen	%
	November 30, 2021	222,935	6.2			10,105	9.2		10,700	8.8		7,188	3.1
	November 30, 2020	209,844	19.3			9,253	30.2		9,832	29.8		6,971	36.3
(Note) Comprehensive income: Nine months ended November 30, 2021: ¥7,229 million [3.1%]
			Nine months ended November 30, 2020: ¥7,014 million [37.0%]
		Basic earnings			Diluted earnings
			per share				per share
	Nine months ended			Yen					Yen
	November 30, 2021			344.49					-
	November 30, 2020			334.11					-
(2) Consolidated Financial Position
			Total assets			Net assets	Equity ratio
				Million yen			Million yen		%
	As of November 30, 2021		148,113			81,656		55.1
	As of February 28, 2021		136,558			76,283		55.9

(Reference) Equity: As of November 30, 2021: ¥81,656 million As of February 28, 2021: ¥76,283 million

2. Dividends

				Annual dividends
		1st quarter-		2nd quarter-		3rd quarter-		Year-end		Total
		end		end		end
		Yen		Yen		Yen		Yen		Yen
Fiscal year ended		-	40.00		-		46.00	86.00
February 28, 2021
Fiscal year ending		-	43.00		-
February 28, 2022
Fiscal year ending								43.00	86.00
February 28, 2022
(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 - February 28, 2022)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Operating income	Operating profit	Ordinary profit	to owners of
	per share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	283,597	(0.3)	11,308	(5.2)	11,996	(5.4)	8,031	(9.0)	384.88

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Changes in significant subsidiaries during the period: None
   (Changes in specified subsidiaries resulting in changes in scope of consolidation) Newly included: -
   Excluded: -
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
5. Total number of issued and outstanding shares (common shares)
6. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

November 30, 2021:	20,867,800 shares
February 28, 2021:	20,867,800 shares
2) Total number of treasury shares at the end of the period:
November 30, 2021:	1,207 shares
February 28, 2021:	1,153 shares

3) Average number of shares during the period (cumulative from the beginning of the fiscal year):

Nine months ended November 30, 2021:	20,866,632 shares
Nine months ended November 30, 2020:	20,866,733 shares

• These quarterly consolidated financial results are outside the scope of quarterly reviews by certified public accountants or an audit firm.

• Explanation of the proper use of financial results forecasts and other notes
  The business outlook and other forward-looking statements in these materials are based on information currently available to the Company and certain assumptions that are deemed reasonable. Actual financial results, etc. may significantly vary from these forecasts due to various factors. For the assumptions used in the above financial results forecasts and other related matters, please refer to "1. Qualitative Information on Quarterly Financial Results for the Period under Review (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements" on page 3.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results for the Period under Review ........................	2
(1)	Explanation of Operating Results ....................................................................................................	2
(2)	Explanation of Financial Position ....................................................................................................	3
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Statements ..	3
2. Quarterly Consolidated Financial Statements and Principal Notes ......................................................	4
(1)	Quarterly Consolidated Balance Sheets ...........................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ...................................	6
	Quarterly Consolidated Statements of Income .................................................................................	6
	Quarterly Consolidated Statements of Comprehensive Income .......................................................	7
(3)	Notes to Quarterly Consolidated Financial Statements ....................................................................	8
	(Notes on going concern assumption) ..............................................................................................	8
	(Notes in case of significant changes in shareholders' equity) .........................................................	8

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1. Qualitative Information on Quarterly Financial Results for the Period under Review

1. Explanation of Operating Results
   During the nine months ended November 30, 2021, expectations are high for the Japanese economy to recover as the level of social and economic activity gradually increases, with efforts, including the COVID-19 vaccination rollout. However, due care must still be taken with respect to the risk of the trends of COVID-19 causing downturns in the domestic or overseas economies, and the economic outlook, including the impact of changes in the financial and capital markets, remains uncertain.
   In the retail industry, amid the changes in lifestyle and still continuing decline in consumer spending due to the spread of COVID-19, conditions remain harsh, with increasingly fierce competition across business types and categories.
   In this environment, the Belc Group (the "Group") has worked to sell delicious and fresh products, emphasize our price appeal, and create stores that are supported and trusted by customers, led by our motto of "Better Quality & Lower Price," so that we, as a supermarket, can provide members of local communities with richer lives.
   Below is an overview of the main initiatives we have implemented.
   In our sales measures, we have continued with business as usual, supplied products, and fulfilled our role as a lifeline in communities while employing various measures to prevent the spread of COVID-19. In April, to commemorate the number of Belc card members exceeding two million, we made efforts to give customers more incentives to visit our stores, including a massive promotional campaign in which customers won big prizes. We have also been enhancing the convenience of our customers by gradually expanding the stores that support "Belc otodoke (delivery) pack," our online grocery shopping service, and "smabelc," a service that enables smart shopping and eases the lines at the check-out counters. Furthermore, we have pushed ahead with our efforts to provide shopping assistance to the elderly and other customers through increasing the availability of our mobile supermarket, "Tokushimaru."
   In our product measures, we have promoted our select products by creating conceptual flyers that focus on the products. We also have expanded our offering of products in our private brand, "kurabelc (Belc for everyday life)," successively launching new and reasonably priced products that help improve people's daily lives.
   In our store operations, we have used the Company's greatest feature, our standardized corporate structure, as a foundation on which we have firmly established our labor scheduling program (LSP), appropriately allocated personnel, and leveraged labor-saving equipment to promote efficient chain operation.
   As for our store investments, we newly opened Toda Hikawa-cho Store in Toda City, Saitama Prefecture in July 2021, Forte Ota Store in Ota City, Gunma Prefecture in October 2021 and Sagamihara Miyashimohon- cho Store in Sagamihara City, Kanagawa Prefecture in November 2021. In addition, we renovated five existing stores, expanded their deli and convenience food selections, and updated the facilities to provide more pleasant shopping environments. In March 2021, we closed Satte Minami Store in Satte City, Saitama Prefecture. As a result, we operate 125 stores as of November 30, 2021.
   We have leveraged our in-house logistics strengths to carry out large-scale batch procurement of products from production sites and manufacturers, through which we aim to improve our delivery efficiency and product price competitiveness while achieving more consistent product quality. We have also continued to review and revise our delivery system based on the work performed at stores, and to improve the efficiency of store operations.
   As a result, operating income (net sales and operating revenue combined) for the nine months ended November 30, 2021 was ¥222,935 million (106.2% of that of the same period of the previous fiscal year), operating profit was ¥10,105 million (109.2% of that of the same period of the previous fiscal year), ordinary profit was ¥10,700 million (108.8% of that of the same period of the previous fiscal year) and profit attributable to owners of parent was ¥7,188 million (103.1% of that of the same period of the previous fiscal year).

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