CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2013
(March 1, 2012 to May 31, 2012)
July 2, 2012
F&A Aqua Holdings, Inc. is listed on the First Section of the Tokyo Stock Exchange under the securities code number 8008.
Representative:
Inquiries:

Saishi Kimura, President and Representative Director
Masahiko Iwamori, Executive Director in charge of operations
Tel: +81-3-5719-3429
URL: http://www.fa-aqua.co.jp
Quarterly Securities Report filing date (planned): July 13, 2012
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): —(Millions of yen rounded down)

1. Consolidated Operating Results for the First Quarter of Fiscal 2012
(March 1, 2012 to May 31, 2012)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Operating Revenues
Operating Income
Ordinary Income
Net Income
Millions of yen％

1Q FY2012

11,3867.9

1Q FY2011

10,551(4.0)

Net Income
per Share％

Millions of yen％

Millions of yen

％

1,117

83.9

1,363

136.1

667

624.2

607

0.4

577

(20.0)

92(64.0)

Millions of yen

Net Income per
Share after Dilution
Yen

Yen

1Q FY2012

24.32

—

1Q FY2011

3.32—

Note: Comprehensive income 1Q FY2012: 447 million yen (—%) 1Q FY2011: 18 million yen (—%)
(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
Net Assets per Share
Assets%Yen

Millions of yen

Millions of yen

May 31, 2012

52,03038,99774.9

1,420.57

February 29, 2012

51,142

38,83775.9

1,415.84(Reference)
Shareholders’ equity: May 31, 2012: 38,979 million yen
February 29, 2012: 38,821 million yen
2. Dividends
Dividends per Share
(Record Date)
Fiscal 2011
Fiscal 2012
Fiscal 2013
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

10.00

—

11.00

21.00

10.50

—

10.50

21.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 28, 2013: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2013
(March 1, 2012 to February 28, 2013)(% figures for the full fiscal year represent year-on-year increase or decrease)
Net Income
Operating Income
Ordinary Income
Net Income
per Share

Net Sales
Millions of yen

Interim period
Fiscal year
endingFebruary 28,
2013%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

22,500

4.6

1,800

38.4

2,000

40.6

900

60.2

32.81

47,500

1.7

3,800

10.9

4,300

10.6

2,200

11.7

80.20

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February
28, 2013: No
4.

Other
(1) Changes in Important Subsidiaries during the Period: No(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: No
2) Changes of accounting principles other than 1) above: Yes
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
May 31, 2012: 29,331,356 sharesFeb. 29, 2012: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2012: 1,892,422 sharesFeb. 29, 2012: 1,911,731 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)First quarter fiscal 2012: 27,432,142 shares First quarter fiscal 2011: 27,786,481shares
Note: The number of recorded treasury stock is inclusive of 295,700 of the Company’s shares held by the F&A
Aqua Holdings Employees’ Shareholding Association Trust Account as of the end of the quarterly period.

Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the first quarter of fiscal 2012 is not subject to the quarterly review procedures
stipulated in the Financial Instruments and Exchange Act of Japan. As of the date of disclosure of thisreport, the review procedures for the quarterly financial statements under the Financial Instruments andExchange Act had not been completed.
Cautionary Statement Concerning Operating Results Forecasts and Other Special Items
The aforementioned forecasts were made based on information available to management as of the date ofthis report. Actual results could differ significantly from forecasts due to a variety of factors. Please refer to“Qualitative Information / Financial Statements and Other” 3. Qualitative Information Regarding
Forecasts of Consolidated Business Results on page 5 for assumptions of the revision of forecasts ofbusiness results.

-2-

Contents
1.

2.

Qualitative Information Regarding Consolidated Quarterly Business Results

4(1)

Qualitative Information Regarding Consolidated Operating Results

4(2)

Qualitative Information Regarding Consolidated Financial Position

5(3)

Qualitative Information Regarding Forecasts of Consolidated Business Results

5

Other

5

(1)

Changes in Important Subsidiaries During the Period

5(2)Application of Special Accounting Practices in the Preparation of the Quarterly

5

Consolidated Financial Statements(3)

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

5(4)Additional Information

5

3.

Summary of Significant Events Related to the Going Concern Assumption

54.

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income

First Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income

First Quarter Cumulative

8
9

(3)

Notes Regarding Going Concern Assumptions

10

(4)

Segment Information

10

(5)

Notes Regarding Substantial Changes in Shareholders’ Equity

11

-3-

1. Qualitative Information Regarding Consolidated Quarterly Business Results(1) Qualitative Information Regarding Consolidated Operating Results
During the first quarter period of fiscal 2012 (March 1, 2012 to May 31, 2012), the Japanese economy
gradually recovered from the stagnation following the Great East Japan Earthquake, on the back ofrecovery demand. However, instability continued as a result of the effects of the European debt crisis,
the persistently strong yen and other factors.
In the retail industry, consumer spending gradually recovered from the post-quake slump, but aclouded outlook is forecast as a result of the impact from reforms to the social security and tax
structures.
Under such conditions, the F&A Aqua Holdings Group, with fiscal 2012 as the first year of its
third medium-term management plan, worked to enhance its corporate value by practicing CSR-based
management to establish a highly trusted corporate group, by strengthening internal controls, byproviding returns to shareholders, and by making longer term investments linked to earnings growth.
As a result, operating revenues for the first quarter period of the subject fiscal year amounted to¥11,386 million (up 7.9% from the same period of the previous fiscal year). Operating income totaled¥1,117 million (up 83.9%), with ordinary income of ¥1,363 million (up 136.1%) and net income of¥667 million (up 624.2%).
Operating income, ordinary income and net income reached record high levels during the subject
first quarter period.
Note: Operating revenues are the sum total of net sales and other operating revenues.
Operating results by business segment are as follows.
The F.D.C. Products Group
Sales and operating income both rose considerably from the same period of the previous fiscal year,
due mainly to strong same-store sales of mainstay 4°C brand jewelry, and rising sales at 4°C BRIDAL
and canal 4°C locations.
As a result, segment operating revenues amounted to ¥5,167 million (up 13.1% from the same
period of the previous fiscal year), with operating income of ¥827 million (up 54.1%).
The AS’TY Group
Sales and operating income both rose considerably from the same period of the previous fiscal year.
Business steadily expanded for apparel manufacturing, centered on OEM, due to further strengtheningof project planning capabilities.
As a result, segment operating revenues amounted to ¥2,925 million (up 10.7% from the same
period of the previous fiscal year), with operating income of ¥297 million (up 72.4%).
MISUZUMISUZU Co., Ltd.’s sales declined overall as a result of the closure of unprofitable locations during
the previous fiscal year, but same-store sales rose from the same period of the previous fiscal year. In
terms of earnings, the gross profit margin improved and operating income rose year on year as a resultof efforts to enhance the brand value and strengthen SPA (Specialty store retailer of Private label
Apparel) functions.
As a result, segment operating revenues amounted to ¥1,562 million (down 2.8% from the same
period of the previous fiscal year), with operating income of ¥79 million (up 380.4%).
âgeSame-store sales for âge Co., Ltd.’s mainstay everyday fashion brand PALLET expanded from thesame period of the previous fiscal year, with new store sales also positive. Operating income also roseon improvement in the gross profit margin.
As a result, segment operating revenues amounted to ¥1,730 million (down 0.1% from the same
period of the previous fiscal year), with operating income of ¥10 million (compared to an operating
loss of ¥3 million in the same period of the previous fiscal year).

-4-(2) Qualitative Information Regarding Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets at the end of the subject first quarter period (May 31, 2012) amounted to ¥52,030 million,
an increase of ¥888 million from the end of the previous fiscal year (February 29, 2012). This was due
mainly to an increase of ¥1,049 million in merchandise and finished goods, against a decrease of ¥631
million in cash and deposits. Total liabilities amounted to ¥13,033 million, an increase of ¥728 million
from the end of the previous fiscal year. This was due mainly to an increase of ¥1,050 million in
short-term loans payable, against a decrease of ¥744 million in income taxes payable. Total net assets
at the end of the subject first quarter period amounted to ¥38,997 million, an increase of ¥159 million
from the end of the previous fiscal year.
(3) Qualitative Information Regarding Forecasts of Consolidated Business Results
For information on the consolidated results forecasts for the second quarter of the fiscal year ending
February 2013, see the press release “Notice Concerning Revision to Consolidated Results Forecasts
for the Second Quarter Cumulative Period of the Fiscal Year Ending February 2013” issued today (July2, 2012).

2. Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period:
Not applicable(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements:
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements:
Change in Valuation Method for Inventories
The F&A Aqua Holdings Group had previously adopted the weighted-average cost method as its
principal valuation method for inventories. From the subject first quarter period, however, the Company
has changed to the moving-average cost method as its principal method.
This change was made following the full replacement of core business systems at the Company’s
principal subsidiary F.D.C. Products Inc. to allow for calculation of costs in a timely manner, and isintended to facilitate calculation of periodic profit or loss more quickly and accurately. This change inaccounting method has been applied retroactively. Figures in the financial statements for the previous
quarter and previous fiscal year are after retroactive application.
The impact on results from this change is minimal.
(4) Additional Information
Application of Accounting Standard for Accounting Changes and Error Corrections
For accounting changes and corrections of previous errors made after the subject first quarter period, theCompany has applied “Accounting Standard for Accounting Changes and Error Corrections” (ASBJ
Statement No. 24, December 4, 2009) and “Guidance on Accounting Standard for Accounting Changes
and Error Corrections” (ASBJ Guidance No. 24, December 4, 2009).
3. Summary of Significant Events Related to the Going Concern Assumption
Not applicable-5-4. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year
Ended February 29, 2012
(As of February 29, 2012)ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Other, net
Total property, plant and equipment

End of the First Quarter of
the Fiscal Year Ending
February 28, 2013
(As of May 31, 2012)

1,287,321
3,405,744
5,205,017
329,657
566,752
1,187,205(6,941)

655,978
4,404,124
6,254,131
241,237
573,828
1,218,088(5,077)

11,974,758

13,342,310

5,531,699
5,820,237
489,110

5,581,817
5,820,237
542,326

11,841,047

11,944,381

Intangible assets:
Goodwill
Other intangible assets

7,271,736
192,342

7,135,541
168,798

Total intangible assets

7,464,079

7,304,339

13,444,132
1,990,625
5,021,778(593,824)

13,091,676
1,989,608
4,972,184(613,743)

Investments and other assets:
Investment securities
Prepaid pension cost
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-6-

19,862,712

19,439,726

39,167,839

38,688,447

51,142,598

52,030,757

５．
（要約）四半期連結財務諸表(Thousands of yen)
End of the Fiscal Year
Ended February 29, 2012
(As of February 29, 2012)
LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Other
Total current liabilities
Noncurrent liabilities:
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities

End of the First Quarter of
the Fiscal Year Ending
February 28, 2013
(As of May 31, 2012)

4,000,388
97,7001,034,486
503,261
57,4502,836,780

4,766,497
1,147,700
289,606
357,507
14,025
2,695,167

8,530,067

9,270,503

510,350
554,593
397,046806,554
1,506,051

485,925
542,111396,225
831,036
1,507,529

3,774,597

3,762,828

Total liabilities

12,304,664

13,033,331

NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock

2,486,520
18,300,303
19,720,307(1,476,415)

2,486,520
18,300,303
20,073,540(1,452,501)

39,030,717

39,407,864

Other accumulated comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments

Total shareholders’ equity

91,193
14,624(264,512)(50,172)(116,070)(4,023)(264,512)(44,223)

Total other accumulated comprehensive income(208,866)(428,829)

14,286
1,796

16,498
1,892

38,837,933

38,997,425

51,142,598

52,030,757

Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets-7-

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
First Quarter Cumulative(Thousands of yen)First Quarter of the
Fiscal Year Ended
February 29, 2012
(March 1, 2011 to
May 31, 2011)

First Quarter of the
Fiscal Year Ending
February 28, 2013
(March 1, 2012 to
May 31, 2012)

Net sales
Cost of Sales

10,281,698
4,836,963

11,140,755
5,067,596

Gross profit

5,444,734

6,073,158

269,722245,397

Other operating revenue
Operating gross profit

5,714,457

6,318,556

Selling, general and administrative expenses

5,106,653

5,200,662

607,803

1,117,894

661
10,711

Foreign exchange gains
Subsidy income
Other

26,625
1,987
16,527
12,441504
10,090205,582
21,677
6,650
5,548
8,870

Total non-operating income

68,954258,923

8,103
84,310
2,613
4,389

3,702

Operating income
Non-operating income
Interest income
Dividends received
Equity in earnings of affiliates
Rent of real estate for investment―

Non-operating expenses
Interest expenses
Equity in earnings of affiliates
Loss on insurance cancellation
Other
Total non-operating expenses

―
3,300
6,523

99,416

13,525

Ordinary income

577,341

1,363,292

Extraordinary income
Gain on sales of noncurrent assets
Refund of consumer taxes for prior periods

199
121,027―――

Total extraordinary income

121,227

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Impairment loss
Loss on closing of stores
Loss on disaster
Loss on valuation of golf club membership
Other

13,479170,011
12,732
7,228
38,877

3,891
212,520
16,728―20,804

―
―

4,718

―

247,047

253,945

Net income before income taxes

451,521

1,109,346

Income taxes ― current
Income taxes for prior periods
Income taxes ― deferred

137,616
59,829162,158

294,348

Total income taxes

359,603442,089

Income before minority interests

91,917667,257

Total extraordinary losses―
147,740

Minority interests in income (loss)

(211)

95

Net income

92,129667,161-8-

Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative(Thousands of yen)First Quarter of the
Fiscal Year Ended
February 29, 2012
(March 1, 2011 to
May 31, 2011)
Income before minority interests
Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income

First Quarter of the
Fiscal Year Ending
February 28, 2013
(March 1, 2012 to
May 31, 2012)

91,917667,257(51,134)(1,285)2,262(141,719)(18,647)
5,948(23,196)(65,544)(73,354)(219,963)
447,294

18,563
18,563Comprehensive income attributable toComprehensive income attributable to owners of the parent―-9-447,294―

(3) Notes Regarding Going Concern Assumptions
Not applicable(4) Segment Information
Ⅰ The first quarter of the fiscal year ended February 29, 2012 (March 1, 2011 to May 31, 2011)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
quarterlystatements
of income(Note 2)

10,551,420―

10,551,420

43,397439,524(439,524)―

1,628,749

1,775,155

10,990,944(439,524)

10,551,420

16,485(3,492)

722,663(114,859)

607,803

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUâge

Total

4,568,583

2,643,384

1,607,694

1,731,757

932

374,138

21,0554,569,516

3,017,523

537,200

172,468

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers
Total
Segment income or loss

Notes:
1. The adjustment amount of minus ¥114,859 thousand for segment income mainly includes corporate expenses that are
not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income or loss figures have been adjusted to operating income on the consolidated quarterly income
statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.
Ⅱ

The first quarter of the fiscal year ending February 28, 2013 (March 1, 2012 to May 31, 2012)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
quarterlystatements
of income(Note 2)

11,386,153―

11,386,153

42,458436,306(436,306)―

1,575,451

1,773,246

11,822,459(436,306)

11,386,153

79,195

10,1391,214,263(96,368)

1,117,894

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUâge

Total

5,167,457

2,925,165

1,562,742

1,730,787

9,779

371,359

12,709Total

5,177,236

3,296,524

Segment income

827,561

297,367

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Notes:
1. The adjustment amount of minus ¥96,368 thousand for segment income mainly includes corporate expenses that are notallocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

- 10 -

2.

Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.

(5) Notes Regarding Substantial Changes in Shareholders’ Equity
Not applicable- 11 -