Results Briefing 2Q of the Fiscal Year Ending February 28, 2015
October 6, 2014 16:00-17:00

Q&A
Q1
Can you please provide details of monthly results for September 2014 announced todaywith information regarding the Group’s performance by brand and business type? Inparticular, could you tell us more about the status of 4ºC BRIDAL recovery?
A1
For the first half of fiscal 2103, net sales of existing stores climbed 4.4% compared withthe corresponding period of the previous fiscal year. Despite the impact of a hike inJapan’s consumption tax rate, net sales for the first half of the fiscal year under review
grew 3.8% year on year.
Looking specifically at year-on-year results in September 2014, net sales of4ºC brand jewelry sold mainly through department stores increased 3.6% on an existing
store basis. This was despite the month in question having one less Saturday, Sunday
and national holiday compared with the corresponding month of the previous year. Inaddition, existing store sales of canal 4ºC brand products sold largely through railway
station and fashion building outlets were also robust climbing 8.5% year on year for themonth of September 2014.
Turning to 4ºC BRIDAL brand products, we took steps to revise nominal retailprices in October last year. Taking into consideration the rush in demand prior to thisprice revision in September 2013, net sales on an existing store basis rose 15.6%, a
substantial upswing compared with results for September 2012. For the current fiscal
year under review, existing store net sales in September 2014 were down 18.5% year onyear. Accounting for the estimated impact on net sales of around 8% attributable to themonth of September 2014 containing one less Saturday, Sunday and national holiday
compared with the corresponding month of the previous year, results were generally inline with usual trends.
Q2
Looking at the data for ordinary income by business type listed on page 15 of theInvestors’ Presentation of Results for the First Half of Fiscal 2014, the 4ºC BRIDAL
brand recorded an increase in revenue and decrease in earnings compared with thecorresponding period of the previous fiscal year. Please tell us what were the principal
reasons behind the decline in earnings?

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Results Briefing 2Q of the Fiscal Year Ending February 28, 2015
October 6, 2014 16:00-17:00

A2
For the first half of the fiscal year ending February 28, 2015, the 4ºC BRIDAL brand
did indeed record an increase in revenue and decrease in earnings on a store net sales
basis compared with the corresponding period of the previous fiscal year. However,forward sales in January and February 2014, prior to the consumption tax rate hike,were recorded as net sales from March 2014 at the time of product delivery foraccounting purposes. In reality, results in fact improved compared with thecorresponding period of the previous fiscal year.
Q3
In the apparel business, MISUZU Co., Ltd. has continued to slump over the past severalquarters. We understand that the company is currently taking steps to close unprofitable
stores. Please tell us if you have any initiatives or policies going forward, and if so
provide us with details.
A3
Recognizing that MISUZU Co., Ltd. erred in adopting the policy to open new stores infiscal 2012, steps were taken to terminate efforts to expand the store network from thesecond half of fiscal 2013 and to focus on measures aimed at improving the appeal ofexisting stores. In the first half of the fiscal year ending February 28, 2015, MISUZU
Co., Ltd. confronted extremely difficult conditions. Due mainly to the impact of theconsumption tax rate hike as well as such factors as the inclement weather, existing
store sales fell 7.6% compared with the corresponding period of the previous fiscal year.
With efforts to both withdraw from unprofitable stores and to reduce headquarters
expenses proceeding according to plans, we will again focus on existing store initiatives
during the second half of the fiscal year under review. During the third and fourth
quarters of fiscal 2014, we are confident in our ability to boost results focusing mainly
on exterior-related items including coats and jackets, which are recognized MISUZU
Co., Ltd. strengths. On this basis, we are projecting operating income of around ¥100
million. In order to reestablish existing stores, we will aggressively follow up on
customer needs while drawing distinct lines between urban-type merchandise andmerchandise for regional as well as suburban-type shopping centers during the second
half of the fiscal year under review.
Q4
We have heard that the retail industry is struggling to hire staff. How have you fared in2

Results Briefing 2Q of the Fiscal Year Ending February 28, 2015
October 6, 2014 16:00-17:00

recruiting new staff? If the Group is indeed having difficulties in hiring employees,
please tell us about the countermeasures that are currently being employed?
A4
In April 2014, F.D.C. Friends Inc. recruited just under 50 new graduate employees. Infiscal 2015, plans are in place to double this number by recruiting around 100 newemployees in April 2015. In this sense, our recruiting endeavors are essentially in linewith plans. In addition, both our headquarters and Group company efforts to recruit new
graduates are currently on track.
On the other hand, there are instances depending on the area where our efforts
to complement our workforce with mid-career hires are falling short of expectations. In
each case, we are working to fill any gaps through personnel assignments and remain
confident that there are no problems at this time.

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