CONSOLIDATED FINANCIAL REPORTFISCAL 2012（Japanese GAAP）(March 1, 2012 to February 28, 2013)
April 15, 2013
F&A Aqua Holdings, Inc. is listed on the First Section of the Tokyo Stock Exchange under the securities code number 8008.
Representative:
Inquiries:

Hidenori Suzuki, President and Representative Director
Masahiko Nishimura, Executive Director in charge of operations
Tel: +81-3-5719-3429
URL: http://www.fa-aqua.co.jp
Annual General Meeting of Shareholders date (planned): May 23, 2013
Fiscal 2012 Securities Report filing date (planned): May 24, 2013
Dividend payment commencement date (planned): May 24, 2013
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: Yes (for analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated Performance for FY 2012 (March 1, 2012 to February 28, 2013)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen%

Millions of yen

FY 2012

48,2373.3

4,289

FY 2011

46,6930.6

3,425(Note) Comprehensive income: FY 2012: ¥3,072 million (59.5%)
Net Income Per
Share

%

Millions of yen

Net Income%

Millions of yen

25.2

4,883

25.6

2,785

41.4

37.0

3,889

30.6

1,970

98.7

FY 2011: ¥1,926 million (83.8 %)Net Income Per
Share (Diluted)

Yen

Ordinary Income

Ordinary Income
to Total Assets

ROE

Yen

Ordinary Income
to Operating
Revenues%%%

FY 2012101.64—
7.0
FY 2011
71.27—
5.1(Reference) Equity in earnings of affiliated companies accounted for by the equity method:
FY 2012: ¥377 million
FY 2011: ¥219 million

9.4
7.6

8.9
7.3

(2) Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Net Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 28, 201353,295

41,10677.1

1,509.31

As of February 29, 2012

51,142

38,83775.9

1,415.84(Reference) Shareholders’ equity: As of February 28, 2013: ¥41,086 million

As of February 29, 2012: ¥38,821 million(3) Consolidated Cash Flows
Operating Activities

Investing Activities

Financing Activities

Cash and Cash
Equivalents at the Endof the Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY 2012

3,368(1,230)(1,322)

2,111

FY 2011

4,065

(432)

(2,841)

1,287

― 1 ―

2.

Dividends
Cash Dividends per Share of Common Stock
End of 1Q End of 2Q End of 3Q
Yen

Yen

End of 4Q

Annual

Yen

Yen

Yen

Cash
Dividends
Paid (Annual)

Dividend
Payout Ratio(Consolidated)

Millions of yen%

Cash Dividends
to Net Assets(Consolidated)%

FY 2011
—
10.00
—
11.00
21.00
601
29.5
FY 2012
—
10.50
—
11.50
22.00
626
21.6
FY 2013 (planned)
—
12.50
—
12.50
25.00
22.5
(Note) Breakdown of year-end dividend per share for fiscal 2012: Ordinary dividend: 10.50 yen; special dividend: 1.00 yen

3.

1.6
1.5

Forecast of Consolidated Results for FY 2013 (March 1, 2013 to February 28, 2014)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues

InterimFull Fiscal Year

4.

Operating Income

Ordinary Income

Net Income per
Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

23,00050,000

1.7
3.7

1,900
4,750

(3.2)
10.7

2,250
5,400

(2.0)
10.6

1,200
3,050

14.5
9.5

43.79
111.29Other(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation)
No(2) 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(3) Number of shares issued and outstanding (common shares)
1. Number of shares issued and outstanding as of the end of the period (including treasury stock)
As of February 28, 2013: 29,331,356 shares
As of February 29, 2012: 29,331,356 shares
2. Number of treasury stock
As of February 28, 2013: 2,109,450 shares
As of February 29, 2012: 1,911,731 shares
3. Average number of shares for the year
FY2012: 27,404,760 shares
FY2011: 27,641,090 shares
Notes:
1. The number of recorded treasury stock is inclusive of 218,800 of the Company’s shares held by the F&A Aqua
Holdings Employees’ Shareholding Association Trust Account as of the end of the fiscal year.
2. For additional information on the basic number of shares used to calculate consolidated net income per share,please refer to “Per Share Information” on page 24.

(Reference) Non-Consolidated Performance
1. Non-Consolidated Performance for FY 20112 (March 1, 2012 to February 28, 2013)(1) Non-Consolidated Business Results(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues
Millions of yen%

Operating Income
Millions of yen

Ordinary Income%

Millions of yen%

Net Income
Millions of yen%

FY 2012

1,524

16.6

977

18.7

951

19.6

802

19.0

FY 2011

1,306

2.4

823

1.3

795

0.5

674

(3.2)

Net Income per ShareNet Income Per Share(Diluted)

Yen

Yen

FY 201228.12—

FY 2011

23.44

—

― 2 ―

(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 28, 2013

33,56023,97971.4

845.42As of February 29, 2012

32,82823,98073.0

839.77(Reference) Shareholders’ equity: As of February 28, 2013: ¥23,960 million

As of February 29, 2012: ¥23,966 million

Regarding the Status of Review Procedure Implementation
This financial report for the fiscal 2012 is not subject to the review procedures stipulated in the Financial
Instruments and Exchange Act of Japan. As of the date of disclosure of this report, the review procedures forthe financial statements under the Financial Instruments and Exchange Act had not been completed.
Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
The forecasts of operating results and other items concerning the future contained in this document are basedon management’s assumptions and beliefs that are determined to be reasonable in light of currently available
information, F&A Aqua Holdings, Inc. cautions readers that due to a variety of factors actual results may differ
materially from forecasts. For the assumptions that underpin operating results forecasts as well as cautionary
notes on the use of operating results forecasts, please refer to the information from page 6.

― 3 ―Contents
1.

OPERATING RESULTS

5(1)

Operating Results

5(2)

Financial Position

7(3)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2012 and Fiscal 2013

8

2.

MANAGEMENT POLICIES

9

3.

CONSOLIDATED FINANCIAL STATEMENTS

10

(1)

Consolidated Balance Sheets

10

(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

12

Consolidated Statements of Income

12

Consolidated Statements of Comprehensive Income

13

(3)

Consolidated Statements of Changes in Shareholders’ Equity, Valuation and Conversions

14

(4)

Consolidated Statements of Cash Flows

17

(5)

Notes Regarding Going Concern Assumptions

19

(6)

Changes in Important Items Basic to the Preparation of Consolidated Financial Statements

19

(7)

Notes to Consolidated Financial Statements

21(Segment Information)

21(Per Share Information)

24(Important Subsequent Events)

24

4.

NON-CONSOLIDATED FINANCIAL STATEMENTS

25

(1)

Non-Consolidated Balance Sheets

25

(2)

Non-Consolidated Statements of Income

27

(3)

Non-Consolidated Statements of Changes in Shareholders’ Equity, Valuation and28

Conversions
5.

OTHER

31

― 4 ―

1. OPERATING RESULTS(1) Operating Results
Operating Results for Fiscal 2012 (the fiscal year ended February 28, 2013)
In fiscal 2012, the fiscal year ended February 28, 2013, the Japanese economy showed signs of a gentle
recovery from the stagnation that ensued following the Great East Japan Earthquake. This was largely
attributable to the upswing in reconstruction demand. In general terms, however, the overall economic outlook
remained clouded by such factors as the downturn in export activity and sluggish capital expenditure stemming
mainly from the European debt crisis and weak economic growth in developing countries. Meanwhile,
expectations toward economic and monetary policies following the change in government in Japan havetriggered movements in several key indicators. This has been particularly noticeable following corrections tothe strong yen and the increase in stock prices, which are providing the promise of a brighter future.
The retail industry continues to confront a harsh operating environment as a result of increasing
thriftiness and price consciousness on the part of consumers, who are working ever more diligently to protect
their lifestyles.
Under these circumstances, the F&A Aqua Holdings Group took steps to enhance its corporate value
in fiscal 2012, the first year of its third medium-term management plan. In specific terms, the Group continued
to practice CSR-based management to become a highly reliable and trustworthy corporate group, strengthened
internal controls, placed considerable emphasis on providing returns to shareholders, and undertook mediumand long-term investments linked to earnings growth.
From an individual business operating revenues perspective, the F.D.C. Products group reported anincrease in sales compared with the previous fiscal year. This was largely attributable to strong sales of thegroup’s mainstay 4°C brand jewelry at existing stores as well as robust 4°C BRIDAL and canal 4°C results.
AS’TY Inc. also reported higher year-on-year sales buoyed mainly by its apparel manufacturing business. In
contrast, sales at MISUZU Co., Ltd. declined compared with the previous fiscal year weighed down by suchfactors as the withdrawal from unprofitable stores. Results at âge Co., Ltd. were similarly down owing mainly
to the weak showing by RAPPORT.
Accounting for each of the aforementioned factors, the F&A Aqua Holdings Group reported
consolidated operating revenues of ¥48,237 million for the fiscal year under review, an increase of 3.3%
compared with the previous fiscal year. This represented a second consecutive fiscal year of operating revenue
growth.
From a profit perspective, consolidated operating income climbed 25.2% year on year to ¥4,289
million. Consolidated ordinary income rose 25.6% compared with the previous fiscal year to ¥4,883 million
and consolidated net income surged 41.4% year on year to ¥2,785 million.
The level of consolidated operating income surpassed the previous historic high recorded 26
accounting periods earlier. Consolidated ordinary income was a second consecutive fiscal year of record highearnings at this level. On a consolidated net income, this was the first time in 21 accounting periods for theGroup to report an historic high.
Note: Operating revenues are the sum total of net sales and other operating revenues.
Results by Business Segment for the Fiscal Year Ended February 28, 2013
The F.D.C. Products GroupOperating Revenues¥
24,678 million (Up 7.4% YoY)
Operating Income¥
3,756 million (Up 21.3% YoY)
The F.D.C. Products group posted a considerable rise in sales and operating income compared with theprevious fiscal year. This was mainly due to the strong performance at existing stores of its mainstay 4°C― 5 ―brand jewelry stores following the opening of the new 4°C Pregence zone. Results were also buoyed bycontinued positive performances at the expanding network of 4°C BRIDAL and canal 4°C stores.
The AS’TY GroupOperating Revenues¥
9,940 million (Up 3.7% YoY)
Operating Income¥
542 million (Up 60.2% YoY)
The AS’TY group took steps to strengthen project planning capabilities in the apparel manufacturing business,
centered on ODM, while also working to expand sales. Sales and operating income were up year on year as aresult of positive trends in relationships with existing business partners, and steady efforts to cultivate newpartners.
MISUZU Co., Ltd.
Operating Revenues¥
6,141 million (Down 6.5% YoY)
Operating Income¥
75 million (Down 46.2% YoY)
MISUZU Co., Ltd. took steps to enhance its brand value and strengthen SPA (Specialty store retailer of private
label apparel) functions. However, sales and operating income declined compared with the previous fiscal year,
owing mainly to a falloff in customers and inclement weather.
âge Co., Ltd.
Operating Revenues¥
7,477 million (Down 1.1% YoY)
Operating Income¥
151 million (Up 7.5% YoY)
Although âge Co., Ltd.’s mainstay everyday fashion brand PALLET performed strongly, sales were down
compared with the previous fiscal year as a result of slow returns from LOU and RAPPORT. Operating income,on the other hand, rose from a year earlier reflecting improvement in the gross margin.
Outlook
Looking ahead, expectations of a recovery in the Japanese economy are forecast to mount due to the positiveflow-on effects of economic and monetary policies. Future operating conditions will remain shrouded in acloud of uncertainty, however, owing to such factors the weak European economy and sluggish growth indeveloping countries.
The retail industry is forecast to again confront a difficult operating environment with earnings
squeezed by a weak yen as well as surging resource prices.
Against this backdrop, the F&A Aqua Holdings Group will remain committed to becoming a highly
reliable and trustworthy corporate group, practicing CSR management and bolstering the internal control
function throughout the second year of its third medium-term management plan. At the same time, the Groupwill continue with efforts to provide adequate returns to its shareholders while undertaking the necessary
medium- to long-term investment that will lead to earnings growth. Through these and other means, the F&A
Aqua Holdings Group will work diligently toward enhancing its corporate value.
Moving forward, the Group will continue to strengthen and expand its six core 4°C brand jewelry,
4°C BRIDAL, canal 4°C, apparel manufacturing, apparel SPA, and daily fashion business growth engines.
These endeavors will dovetail into efforts to achieve its “Numerical Vision.”
Moreover, the F&A Aqua Holdings Group will reinforce its administration and oversight systems,
launch a new Group Strategy Promotion Project, strive for optimal operations, and pursue effective
organizational management in order to promote a Group synergy framework.
Turning to each individual operating group and company, the F.D.C. Products group will continue to
implement measures designed to enhance the value of its 4°C brand. At the same time, the group will remain― 6 ―committed to the systematic opening and expansion of 4°C BRIDAL and canal 4°C stores. In addressing newchallenges, the F.D.C. Products group will cultivate the suburban-type shopping center market by promoting
its MAISON JEWELL brand. Meanwhile, the Group will launch the deux et deux brand in autumn focusing
mainly on regional cities.
The AS’TY group will upgrade and expand its planning and production functions in order to boost
its ODM business. In addition to bolstering activities with mainstay business partners, energies will be directed
toward fostering new partners and entering new sales channels.
MISUZU Co., Ltd. will supply products that make the most of its apparel SPA strengths. At the sametime, the company will place particular weight on strengthening its product planning capabilities by adhering
strictly to a policy of innovative design. In addition to bolstering its store-front promotional activities,
MISUZU will endeavor to increase sale by opening new stores.
Building on its dominant position in the Kansai region, âge Co., Ltd. will work diligently to expand
its PALLET daily fashion item business while standardizing products, displays, and service across all stores.
Buoyed by these initiatives, the F&A Aqua Holdings Group is committed to becoming a robust
corporate group distinguished by its independence.
Based on each of the aforementioned initiatives, the F&A Aqua Holdings Group is projecting
operating revenues of ¥50,000 million, ordinary income of ¥5,400 million and net income of ¥3,050 on aconsolidated basis for the fiscal year ending February 28, 2014.
(2) Financial Position
The Status of Assets, Liabilities and Net Assets
With regard to the F&A Aqua Holdings Group’s consolidated financial position as of the end of the fiscal year
under review, total assets stood at ¥53,295 million, ¥2,152 million higher than the balance as of the end of theprevious fiscal year. This was mainly attributable to increases in marketable securities of ¥1,590 million andinvestment securities of ¥1,359 million which more than offset the decline in cash and deposits of ¥765
million.
Total liabilities amounted to ¥12,188 million as of February 28, 2013. This represented a decrease of¥115 million compared with the end of the previous fiscal year. The principal movement in liabilities was a
decline in notes and accounts payable — trade of ¥190 million.
Net assets as of the fiscal year-end stood at ¥41,106 million, an increase of ¥2,268 million comparedwith February 29, 2012. This was largely attributable to the increase in retained earnings of ¥2,171 million.
Cash Flows
On a consolidated basis cash and cash equivalents as of the end of the period under review (February 28, 2013)
stood at ¥2,111 million, an increase of ¥824 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥3,368 million. This was a decrease of ¥691 million
compared with the previous fiscal year. The major cash inflows were net income before income taxes of¥4,555 million and depreciation and amortization of ¥903 million. This was in turn partly offset by a principal
cash outflow of ¥1,693 million representing income taxes paid.
(Cash Flows from Investing Activities)
Net cash used in investing activities was ¥1,230 million, up ¥797 million compared with the previous fiscal
year. The major cash outflow was payments for the acquisition of property, plant and equipment totaling¥1,012 million.

― 7 ―(Cash Flows from Financing Activities)
Net cash used in financing activities was ¥1,322 million, down ¥1,519 million compared with the previous
fiscal year. The major cash outflows were for cash dividends paid of ¥620 million and the repayment oflong-term loans payable totaling ¥364 million.
(Reference) Trends in the F&A Aqua Holdings Group’s cash flow indicators are provided in the following
table.
Fiscal 2009
Shareholders’ equity ratio (%)
Shareholders’ equity ratio basedon market capitalization (%)
Cash flow to interest-bearing
debt ratio (Year)
Interest coverage ratio (Times)

Fiscal 2010

Fiscal 2011

Fiscal 2012

71.5

73.6

75.9

77.1

48.7

41.3

41.9

51.3

0.7

0.9

0.2

0.0

63.7

71.9

143.9

231.5

Notes:
Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio based on market capitalization: Market capitalization / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest payments
 Each indicator is calculated based on figures from consolidated financial statements.
 Market capitalization is calculated based on the number of shares issued and outstanding at the end of the period after
deducting treasury stock.
 Interest-bearing debt includes all interest-bearing debt recorded under liabilities in the consolidated balance sheets.
 Cash flow from operating activities is taken from net cash provided by (used in) operating activities in the consolidated
statements of cash flows. Interest payments are taken from cash paid for interest in the consolidated statements of cash
flows.

(3) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2012and Fiscal 2013
The F&A Aqua Holdings Group places the appropriation of profits to shareholders as a key management
priority. As a result, the Group strives to deliver stable and sustainable cash dividends. At the same time, theGroup adopts a flexible policy toward the purchase of treasury stock as a part of comprehensive efforts toincrease the level of returns to shareholders.
Based on the aforementioned policy, and recognizing that the Group generated record high ordinary
income for a second consecutive accounting period, F&A Aqua Holdings plans to add an extraordinary cash
dividend of ¥1 per common share to its fiscal year-end cash dividend of ¥10.5 per common share for a total of¥11.5 per common share. Together with the interim cash dividend paid of ¥10.5 per share, the Company
intends to pay a full fiscal year cash dividend for fiscal 2012 of ¥22.0 per common share. Looking ahead, F&A
Aqua Holdings plans to pay an interim and fiscal year-end cash dividend of ¥12.5 per common share for the
fiscal year ending February 28, 2014 for a full fiscal year cash dividend of ¥25.0 per common share.
In addition to the appropriation of profits through cash dividends, F&A Aqua Holdings has
established a shareholder special benefit plan. Shareholders of record as of the end of the period can choose
from three benefit options including shareholder gift certificates, Group products and a donation to the Japan
Water Forum, which is introduced as a CSR-oriented benefit.
Furthermore, in an effort to better prepare the Group for the road ahead and to pursue businessdevelopment, F&A Aqua Holdings will continue to enhance profitability and reinforce the Group’s
management and business platforms while fulfilling the expectations of shareholders going forward. At the― 8 ―same time, the Group will take into consideration the internal working capital required to reinforce its
management structure in response to an increasingly competitive environment, cultivate new markets, develop
new brands and pursue business development through a variety of vehicles including M&A.

2. MANAGEMENT POLICIESThere have been no major changes to information disclosed in the F&A Aqua Holdings Group’s Fiscal 2011
Consolidated Financial Report dated April 9, 2012. Accordingly, details have been omitted.
Copies of the Group’s Fiscal 2011 Consolidated Financial Report can be accessed via the following
websites.
(F&A Aqua Holdings, Inc.’s homepage)
URL: http://www.fa-aqua.co.jp/(The homepage of the Tokyo Stock Exchange (Information Search Page for Publicly Listed Companies))
URL: http://www.tse.or.jo/listing/compsearch/index.html― 9 ―3. CONSOLIDATED FINANCIAL STATEMENTS(1) Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended
February 29, 2012
(As of February 29, 2012)

End of the Fiscal Year Ended
February 28, 2013
(As of February 28, 2013)

1,287,321
3,405,744－
5,205,017
329,657
566,752
839,425
13,05490,503244,222(6,941)

521,769
3,149,732
1,590,000
5,842,888
447,256
464,404
501,546
14,74654,163409,069(216)

11,974,758

12,995,001

5,531,699
5,820,237
77,674367
411,068

5,389,917
5,617,629
201,102－477,342

11,841,047

11,685,992

7,271,736
47,742
2,030
142,569

6,276,954
531,875
973
91,156

7,464,079

7,350,959

13,444,132
407,316
35,334
415,757
804,495
1,990,625
2,313,472
561,228

14,803,392
346,948
28,282
389,689
798,325
1,998,224
2,447,917
551,715484,172(593,824)

483,112(584,093)

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Advance payments-trade
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Lease assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets:
Goodwill
Lease assets
Right of trademark
Other
Total intangible assets
Investments and other assets:
Investment securities
Guarantee deposits
Long-term loans receivable
Deferred tax assets
Real estate for investment, net
Prepaid pension cost
Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and other
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets― 10 ―

19,862,712

21,263,515

39,167,839

40,300,467

51,142,598

53,295,468

(Thousands of yen)
End of the Fiscal Year Ended
February 29, 2012
(As of February 29, 2012)

End of the Fiscal Year Ended
February 28, 2013
(As of February 28, 2013)

4,000,388
97,70036,563
1,034,486
1,439
503,261
57,450－2,798,776

3,810,018－
186,838
855,113－553,077
59,4507,988
2,700,448

8,530,067

8,172,934

510,350
94,530318,592
931,369
554,593
397,046806,554
161,558

243,160
581,598
313,146
959,729
540,621
380,602845,241
151,793

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term loans payable
Lease obligations
Income taxes payable
Deferred tax liabilities
Provision for bonuses
Provision for directors’ bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Long-term loans payable
Lease obligations
Long-term guarantee deposited
Deferred tax liabilities
Provision for retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Total valuation and translation adjustments
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets― 11 ―

3,774,597

4,015,894

12,304,664

12,188,829

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

2,486,520
18,300,303
21,891,593(1,670,933)

39,030,717

41,007,484

91,193
14,624(264,512)(50,172)

352,470
16,070(264,512)(25,239)(208,866)

78,78914,286
1,796

19,195
1,171

38,837,933

41,106,639

51,387,224

53,295,468

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Fiscal 2011
(March 1, 2011 to

Fiscal 2012
(March 1, 2012 toFebruary 29, 2012)

February 28, 2013)

Net sales
Cost of Sales

45,690,557
21,071,998

47,264,994
21,274,491

Gross profit

24,618,558

25,990,502

Other operating revenue

1,002,740

972,029

Operating gross profit

25,621,299

26,962,531

Selling, general and administrative expenses

22,196,195

22,673,381

Operating income

3,425,104

4,289,150

Foreign exchange gains
Subsidy income
Other

2,467
62,487219,971
94,687
20,75767,85947,884

2,646
66,094
377,195
88,23032,863
19,46049,580Total non-operating income

516,115

636,070

29,753
3,565
6,367
12,11415,0835,129
6,255
15,198Non-operating income
Interest income
Dividends received
Equity in earnings of affiliates
Rent of real estate for investment

Non-operating expenses
Interest expenses
Loss on insurance cancellation
Depreciation on investments in real estate
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
Foregift income
Refund of consumption taxes for prior periods
Other
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Impairment loss
Loss on closing of stores
Dismantlement expense
Loss on disaster
Loss on valuation of golf club memberships
Loss on withdrawal from employees' pension fundOther

51,801

41,666

3,889,419

4,883,554

585
0
2,751
－
121,027－

77,915224－
14,000－5,140

124,364

97,30023,38664,56050,417274,467
13,971－42,910
－
－
1,061

257
5,609
－
184,088
9,935
18,000－20,504
183,983
2,800

Total extraordinary losses

470,774

425,179

Net income before income taxes

3,543,009

4,555,675

Income taxes ― current
Income taxes ― deferred

1,503,450
69,6401,501,476
269,369

Total income taxes

1,573,090

1,770,846

Income before minority interests

1,969,919

2,784,829

Minority interests in income (loss)
Net income― 12 ―

(197)

(625)

1,970,116

2,785,454

Consolidated Statements of Comprehensive Income(Thousands of yen)
Fiscal 2011
(March 1, 2011 to

Fiscal 2012
(March 1, 2012 toFebruary 29, 2012)

February 28, 2013)

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
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests― 13 ―

1,969,919

2,784,829(58,260)
17,179(6,506)245,802
1,445
24,933

3,690

15,473(43,897)
1,926,021

287,655
3,072,485

1,925,824
197

3,071,859
625

(3) Consolidated Statements of Changes in Shareholders’ Equity, Valuation and Conversions(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Shareholders’ equity
Capital stock
Balance at the end of previous period

2,486,520

2,486,520

Balance at the end of current period

2,486,520

2,486,520

Balance at the end of previous period

18,300,303

18,300,303

Balance at the end of current period

18,300,303

18,300,303

19,130,875

19,720,307

Capital surplus

Retained earnings
Balance as of the end of previous period
Changes of items during the period
Dividends from surplus(578,074)(614,169)

Net income

1,970,116

2,785,454

Retirement of treasury stock
Decrease due to decrease of consolidated
subsidiaries(802,559)

―

(49)

―

Total changes of items during the period

589,432

2,171,285

19,720,307

21,891,593(1,542,926)(1,177,700)

Purchase of treasury stock(437,308)(285,799)

Disposal of treasury stock

(24)

(11)

802,559―

Balance at the end of current period
Treasury stock
Balance as of the end of previous period
Changes of items during the period

Retirement of treasury stock
Total changes of items during the period

365,226(285,811)(1,177,700)(1,463,511)

Balance as of the end of previous period(401,004)(298,714)

Changes of items during the period
Sales of treasury stock from Employee Stock
Ownership Trust

102,289

91,292

Balance at the end of current period
Treasury stock (held by Employee Stock Ownership
Trust)

Total changes of items during the period
Balance at the end of current period

102,289

91,292(298,714)(207,422)(1,943,930)(1,476,415)(437,308)(285,799)

Treasury stock
Balance as of the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Sales of treasury stock from Employee Stock

(24)

(11)

102,289

91,292

802,559―

Ownership Trust
Retirement of treasury stock
Total changes of items during the period
Balance at the end of current period― 14 ―

467,515(194,518)(1,476,415)(1,670,933)

(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Total shareholders’ equity
Balance as of the end of previous period

37,973,769

39,030,717

Dividends from surplus(578,074)(614,169)

Net income

1,970,116

2,785,454

Purchase of treasury stock(437,308)(285,799)

(24)

(11)

(49)

―

102,289

91,292

1,056,948

1,976,766

39,030,717

41,007,484

145,764

91,193(54,570)

261,276(54,570)

261,276

91,193352,470(2,555)

14,624

17,1791,445

Changes of items during the period

Disposal of treasury stock
Decrease of capital surplus due to decrease of
consolidated subsidiaries
Sales of treasury stock from Employee Stock
Ownership Trust
Total changes of items during the period
Balance at the end of current period

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Deferred gains or losses on hedges
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period

17,1791,445

14,624

16,070

Balance as of the end of previous period(264,512)(264,512)

Balance at the end of current period(264,512)(264,512)(43,665)(50,172)(6,506)24,933

Balance at the end of current period
Revaluation reserve for land

Foreign currency translation adjustments
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period(6,506)24,933(50,172)(25,239)(164,969)(208,866)(43,897)

287,655(43,897)

287,655(208,866)

78,789Total valuation and translation adjustments
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period― 15 ―

(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Subscription rights to shares
Balance as of the end of previous period

5,483

12,286

8,802

4,908

Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

8,802

4,908

14,28619,195

1,994

1,796

(197)

(625)

Minority interests
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

(197)

(625)

1,796

1,171

37,816,277

38,837,933

Total net assets
Balance as of the end of previous period
Changes of items during the period
Dividends from surplus(578,074)(614,169)

Net income

1,970,116

2,785,454

Purchase of treasury stock(437,308)(285,799)

(24)

(11)

(49)

―

102,289

91,292

Disposal of treasury stock
Decrease in capital surplus due to decrease of
consolidated subsidiaries
Sales of treasury stock from Employee Stock
Ownership Trust
Net changes of items other than shareholders' equity(35,292)

291,939

Total changes of items during the period

1,021,656

2,268,705

38,837,933

41,106,639

Balance at the end of current period― 16 ―

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 29, 2013)

Cash Flows from Operating Activities:
Net Income before income taxes

3,543,009

4,555,675

Depreciation and amortization

873,721903,110

Impairment loss

274,467

184,088

Amortization of goodwill

523,755544,782

Increase (decrease) in allowance for doubtful accounts(2,961)(15,861)

Increase (decrease) in provision for bonuses

33,41352,137

Increase (decrease) in provision for retirement benefits

24,422(12,617)

Increase (decrease) in other provision

34,535(8,564)

Interest and dividends income(64,954)(68,741)

Interest expenses

29,753

14,889Equity in (earnings) losses of affiliates(219,971)(377,195)

Foreign exchange losses (gains)

23,32428,475

Loss on retirement of noncurrent assets

64,5605,609

Loss (gain) on sales of noncurrent assets

22,800(77,657)

(0)

(244)

Loss (gain) on valuation of investment securities

Loss (gain) on sales of investment securities

50,417―

Gain on sales of subsidiaries and affiliates' stocks―(5,140)Loss on valuation of golf club membership―

20,504

Decrease (increase) in notes and accounts receivable ― trade(91,437)

197,447

Decrease (increase) in inventories(71,718)(654,246)

Increase (decrease) in notes and accounts payable ― trade(138,087)(172,011)

Increase (decrease) in accrued consumption taxes

73,809(134,701)

Decrease (increase) in other assets

245,878(124,362)

Increase (decrease) in other liabilities

15,187

43,161

5,243,925

4,898,536

Interest and dividends income received

173,720

177,505

Interest expenses paid

(28,213)(14,572)

Income taxes paid

(1,329,470)(1,693,379)

Net cash provided by (used in) operating activities

4,059,961

3,368,090

Subtotal― 17 ―

(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Cash Flows from Investing Activities:
Purchase of property, plant and equipment(636,718)(1,012,920)

Proceeds from sales of property, plant and equipment

147,518

579,184

Purchase of intangible assets(62,777)(12,111)

Proceeds from sales of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of long-term loans receivable―

135(15,884)(703,972)

0

952(5,796)(5,329)Collection of long-term loans receivable

18,851

12,381

Purchase of long-term prepaid expenses(25,661)(45,858)

Other payments
Proceeds from sales of investments in subsidiaries resulting inchange in scope of consolidation(283,771)(364,905)―

57,075

Other proceeds

431,408

264,805

Net cash provided by (used in) investing activities(432,831)(1,230,564)(1,540,000)―

Repayment of long-term loans payable(261,684)(364,890)

Purchase of treasury stock(437,308)(285,799)

Cash dividends paid

(585,983)(620,361)

Other payments(16,818)(51,440)(2,841,795)(1,322,490)

(915)

9,412

Cash Flows from Financing Activities:
Increase (decrease) in short-term loans payable

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

784,420

824,447

Cash and cash equivalents at beginning of period

502,901

1,287,321

Cash and cash equivalents at beginning of period

1,287,321

2,111,769― 18 ―

(5) Notes Regarding Going-Concern Assumption
Not applicable(6) Changes in Important Items Basic to the Preparation of Consolidated Financial Statements
Fiscal 2011
(March 1, 2011 to February 29, 2012)

Fiscal 2012
(March 1, 2012 to February 28, 2013)

Changes in matters relating to accounting treatment standards:

Changes in matters relating to accounting treatment standards:

Application of the “Accounting Standard for Equity Method of
Accounting for Investments” and the “Practical Solution on
Unification of Accounting Policies Applied to Associates Accounted
for Using the Equity Method”

1.

Effective from the fiscal year under review, F&A Aqua Holdings
has applied the “Accounting Standard for Equity Method of
Accounting for Investments” (Accounting Standards Board of Japan(ASBJ) Statement No. 16 issued on March 10, 2008) and the“Practical Solution on Unification of Accounting Policies Applied to
Associates Accounted for Using the Equity Method” (Practical
Issues Task Force (PITF) release No. 24 issued on March 10, 2008).
There was no impact on the consolidated financial statements as aresult of application.

Changes in the Valuation Method for Inventories

Historically, the F&A Aqua Holdings Group has adopted a cost
approach based on the gross average method as its principal
valuation method for inventories. Effective from the fiscal year
under review, the Group has applied the moving-average cost
method.
This change was made following the complete replacement of corebusiness systems at the Company’s principal subsidiary F.D.C.
Products Inc. to allow for the calculation of costs in a timely
manner, and is intended to facilitate the calculation of periodic profit
and loss more quickly and accurately. This change in accounting
method has been applied retroactively. Figures in the consolidated
financial statements for the previous fiscal year are after retroactive
application.
The impact of this change in accounting treatment was immaterial.
2.

Application of “Accounting Standard for Earnings per Share”

Effective from the fiscal year under review, F&A Aqua Holdings
applied the “Accounting Standard for Earnings per Share” (ASBJ
Statement No. 2 issued on June 30, 2010) and the “guidance on
Accounting Standard for Earnings per Share” (ASBJ Guidance No.
4 issued on June 30, 2010).
In calculating net income per diluted share, the Company has
switched to the method of adding to expected income from theexercise of rights the portion of the fair value of stock options that
related to future services provided to the Company for stock options
whose rights go into effect after a fixed period.
There was no impact as a result of this change.

Changes in Disclosure Methods
Fiscal 2011
(March 1, 2011 to February 29, 2012)(Consolidated Statements of Income)
The F&A Aqua Holdings Group has adopted the Cabinet Office
Ordinance for Partial Revision of the Regulation for Terminology,
Forms and Preparation of Financial Statements (Cabinet Office
Ordinance No. 5 of March 24, 2009) based on the AccountingStandard for Consolidated Financial Statements (AccountingStandards Board of Japan (ASBJ) Statement No. 22 of December
26, 2008) effective from the fiscal year ended February 29, 2012. As
a result, the accounting line item income before minority interests ispresented in consolidated statements of income.

Fiscal 2012
(March 1, 2012 to February 28, 2013)(Consolidated Statements of Income)“Loss on insurance cancellation” and “depreciation on investments
in real estate,” which were included in the “other” accounting line
item of “non-operating expenses” in the previous fiscal year arerecorded as separate accounting line items for the fiscal year underreview. This is because each item exceeds 10% of total
non-operating expenses. In order to accommodate this change indisclosure method, the consolidated financial statements for theprevious fiscal year have been adjusted accordingly.
As a result, an amount totaling ¥22,047 thousand recorded as“other” in “non-operating expenses” for the fiscal year ended
February 29, 2012 has been reclassified with ¥5,129 thousand
allocated to “loss on insurance cancellation,” ¥6,255 thousand
allocated to “depreciation on investment in real estate,” and ¥15,198
thousand allocated to “other.”― 19 ―

Additional Information
Fiscal 2011
(March 1, 2011 to February 29, 2012)(Accounting Treatment with respect to the Retirement of Treasury
Stock in connection with the Trust-Type Employee Shareholding
Incentive Plan)

Fiscal 2012
(March 1, 2012 to February 28, 2013)
As left

Following a resolution of the Board of Directors at a meeting heldon April 19, 2010, F&A Aqua Holdings decided to introduce a
Trust-Type Employee Shareholding Incentive Plan (hereinafterreferred to as “the Plan”) in order to provide Group employees withincentives to increase the Company’s overall corporate value from a
medium- to long-term perspective.
Under the Plan, the F&A Aqua Holdings Employees’ Shareholding
Association Trust (hereinafter referred to as “the Trust”) will acquire
a considerable number of the Company’ shares that can be expected
to be acquired by the F&A Aqua Holdings Employees’ Shareholding
Association (hereinafter referred to as “the Shareholding
Association”) over a five year period from May 2010. Thereafter,
the Trust shall distribute any capital gains, such as gains on the saleof F&A Aqua Holdings’ shares that accumulate with the Trust by thetime of its termination, to those employees who fulfill therequirements for eligible beneficiaries as residual assets. Moreover,recognizing that the Trust guarantees any borrowings by the Trustfor the acquisition of the Company’s shares, if any amount equal to
the loss on sales of shares accumulates within the Trust due to a
decline in the price of the Company’s shares, and there are any
remaining borrowings equivalent to such loss on the sale of shareswithin the Trust at the time of the termination of the Trust, F&A
Aqua Holdings will repay the remaining borrowings pursuant to theguarantee agreement.
Meanwhile, 513,700 shares of treasury stock at a value of ¥486,987
thousand were transferred to the Trust on May 11, 2010.
With respect to the accounting treatment applicable to theaforementioned treasury stock, F&A Aqua Holdings recognizes that
the Company and the Trust Account are a uniform entity taking into
consideration both from the relationship and economic perspectives
the indemnity provided by the Company for the obligations of theTrust Account. At the time the F&A Aqua Holdings Employees’
Shareholding Association purchases shares from the Trust Account,
the accounting treatment has been applied as if the transfer of shares
was conducted from the Company to a third party. On this basis, theassets, liabilities as well as expenses and income including treasury
stock held by the Trust Account have been posted to the Company’squarterly balance sheet and statement of income. With respect to thenumber of treasury stock, the number of the Company’s shares heldby the Trust Account has been included in the number of treasury
stock.
The F&A Aqua Holdings Group has adopted the AccountingStandard for Presentation of Comprehensive Income (ASBJ
Statement No. 25 issued on June 30, 2010) effective from the fiscal
year ended February 29, 2012. However, the amounts foraccumulated other comprehensive income and total accumulated
other comprehensive income for the previous fiscal year represent
the amounts for valuation and translation adjustments and total
valuation and translation adjustments, respectively.

Application of the “Accounting Standard for Accounting Changes
and Error Calculations”
For accounting changes and corrections of previous errors madeafter the subject fiscal year under review. F&A Aqua Holdings has
applied the “Accounting Standard for Accounting Changes andError Calculations” (ASBJ Statement No. 24 issued on December 4,2009) and the “Guidance on the Accounting Standard for
Accounting Changes and Error Calculations” (ASBJ Guidance No.
24 issued on December 4, 2009).

― 20 ―

(7) Notes to Consolidated Financial Statements(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofmanagement resources and evaluate business results.
As a comprehensive fashion company, the F&A Aqua Holdings Group engages in businessactivities through four core operating companies. These are F.D.C. Products Inc., AS’TY Inc.,MISUZU Co., Ltd. and âge Co., Ltd.
The individual business segments of the F&A Aqua Holdings Group are fundamentally comprised of
its consolidated subsidiaries. On this basis, the Company’s four reporting segments are the F.D.C.
Products group, the AS’TY group, MISUZU and âge.
The F.D.C. Products group is mainly engaged in brand SPA activities dealing ostensibly with 4°C
jewelry as well as restaurant business operations.
The AS’TY group undertakes apparel manufacturing business focusing primarily on its OEM
activities while at the same time engaging in apparel wholesale and developer business activities.
MISUZU operates largely in the ladies’ apparel SPA business.
âge is active in retail operations primarily in the fashion sector focusing mainly on Western Japan.

2. Calculation Methods for Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
The accounting treatment methods for reporting segments are generally the same as those adopted for
preparing consolidated financial statements. Profits for reporting segments are operating income amounts.
Intrasegment sales and transfers are based on current market prices.
3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2011, the Fiscal Year Ended February 29, 2012 (March 1, 2011 to February 29, 2012)(Thousands of yen)
Reporting Segments

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
statement ofincomeF.D.C.
Products
group

AS’TY
group

MISUZUâge

Total

22,980,762

9,585,355

6,567,438

7,559,742

46,693,298―

46,693,298

26,778

1,408,936

53,085

210,537

1,699,338(1,699,338)

―

Total

23,007,541

10,994,291

6,620,523

7,770,280

48,392,637(1,699,338)

46,693,298

Segment income

3,095,642

338,762

140,261

140,680

3,715,346(290,241)

3,425,104

Segment assets

19,345,338

17,814,402

3,231,887

1,935,947

42,436,947

8,806,022

51,142,598

Depreciation

420,548

255,327

115,725

29,780821,382

15,327

836,710

Increase in property, plantand equipment andintangible assets

624,459

37,930141,728

1,651

805,7691,410

698,696

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Other items

Notes:
1. (1) The adjustment amount of minus ¥290,241 thousand for segment income mainly includes amortization of goodwill
totaling minus ¥523,755 thousand and general administrative expenses that are not attributable to individual reporting
segments amounting to minus ¥489,249 thousand.
(2) The adjustment amount of ¥8,806,022 thousand for segment assets is mainly comprised of corporate assets of― 21 ―

2.

¥1,257,053 thousand and the balance of unamortized goodwill of ¥7,271,736 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥15,327 thousand for depreciation and amortization relates to corporate assets that are not
attributable to individual reporting segments.
(4) The adjustment amount of ¥1,410 thousand for the amount of property, plant and equipment as well as intangible assets
increase relates to corporate assets that are not attributable to individual reporting segments.
Segment income matches operating income recorded on the consolidated statements of income.

Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)(Thousands of yen)
Reporting Segments

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
statement ofincomeF.D.C.
Products
group

AS’TY
group

MISUZUâge

Total

24,678,083

9,940,241

6,141,633

7,477,064

48,237,023―

48,237,023

42,8701,424,225

68,647

190,903

1,726,647(1,726,647)

―

Total

24,720,954

11,364,467

6,210,280

7,667,968

49,963,670(1,726,647)

48,237,023

Segment income

3,756,278

542,671

75,435

151,183

4,525,568(236,418)

4,289,150

Segment assets

20,937,884

18,191,716

2,885,237

2,059,008

44,073,847

9,221,621

53,295,468

Depreciation

426,041

247,488

133,71339,951

847,194

18,569865,763

Increase in property, plantand equipment andintangible assets

835,738

38,056

184,567

16,495

1,074,857

542

1,075,400

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Other items

Notes:
1. (1) The adjustment amount of minus ¥236,418 thousand for segment income mainly includes amortization of goodwill
totaling minus ¥544,782 thousand and general administrative expenses that are not attributable to individual reporting
segments amounting to minus ¥573,352 thousand.
(2) The adjustment amount of ¥9,221,621 thousand for segment assets is mainly comprised of corporate assets of¥2,429,363 thousand and the balance of unamortized goodwill of ¥6,726,954 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥18,569 thousand for depreciation and amortization relates to corporate assets that are not
attributable to individual reporting segments.
(4) The adjustment amount of ¥542 thousand for the amount of property, plant and equipment as well as intangible assets
increase relates to corporate assets that are not attributable to individual reporting segments.
2. Segment income matches operating income recorded on the consolidated statements of income.

(Related Information)
Fiscal 2011, the Fiscal Year Ended February 29, 2012 (March 1, 2011 to February 29, 2012)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Informationa.

Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.

b.

Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of
the Company’s property, plant and equipment in the consolidated balance sheets, geographical information has
been omitted.

― 22 ―

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Informationa.

Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.

b.

Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of
the Company’s property, plant and equipment in the consolidated balance sheets, geographical information has
been omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2011, the Fiscal Year Ended February 29, 2012 (March 1, 2011 to February 29, 2012)(Thousands of yen)
Reporting Segments
F.D.C.
Products
group

Impairment loss

131,964

AS’TY
group

MISUZU102,597

36,010

âge
3,894

Total

Adjustment
amount―274,467

Total

274,467

Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)(Thousands of yen)
Reporting Segments
F.D.C.
Products
group

Impairment loss

101,888

AS’TY
group
15,149MISUZU
65,997

âge
1,053

Total
184,088

Adjustment
amount―Total

184,088(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
Fiscal 2011, the Fiscal Year Ended February 29, 2012 (March 1, 2011 to February 29, 2012)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥523,755 thousand and ¥7,271,736 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.

― 23 ―

Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥544,782 thousand and ¥6,726,954 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.

(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2011, the Fiscal Year Ended February 29, 2012 (March 1, 2011 to February 29, 2012)
Not applicable.
Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)
Not applicable.

(Per Share Information)(Yen)
Fiscal 2011
(March 1, 2011 to February 29, 2012)

1.
2.

Net assets per share
Earnings per share

Fiscal 2012
(March 1, 2012 to February 28, 2013)

1,415.84
71.27

1.
2.

Net assets per share
Earnings per share

1,509.31
101.64

Notes:
1. Since there was no dilution of stocks net income per diluted share data has been omitted.
2. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Thousands of yen unless otherwise stated)
As of February 29, 2012
Total earnings per share
Net income
Net income applicable to shareholders of common stock
Net income applicable to common stock
Average number of common shares (Shares)

1,970,116—
1,970,116
27,641,090

Description of the diluted shares not included in the calculationof net income per share adjusted for diluted shares due to their
non-dilutive effect from the previous fiscal year

As of February 28, 2013
2,785,454—
2,785,454
27,404,760
New share subscription rights
issued on June 13, 2012
3rd issuance of new sharesubscription rights
Common stock:36,000 shares
Exercise price:¥936
4th issuance of new sharesubscription rights
Common stock:
22,600 shares
Exercise price:¥986

3. The Company’s shares held by the trust-type employee ownership plan are recognized as treasury stock inconsolidated financial statements. As a result, the number of common shares as of the end of the period used to
calculate the aforementioned net assets per share amount as well as the average number of shares for the periodused to calculate the aforementioned earnings per share amount are after deducting the Company’s shares held by
the trust-type employee ownership plan.

(Important Subsequent Events)
Not applicable.

― 24 ―

4. NON-CONSOLIDATED FINANCIAL STATEMENTS(1) Non-Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended
February 29, 2012
(As of February 29, 2012)

End of the Fiscal Year Ended
February 28, 2013
(As of February 28, 2013)

Accounts receivable-otherOther

901,523－
12,1592,380,720
103,801
5,342

227,148
1,590,000
15,001
1,453,112
85,808
6,011

Total current assets

3,403,547

3,377,082

439
480
9,000

818
232
6,300

9,920

7,350

1,779
46,109946
51,61047,88852,556

3,631
29,197,880
32,424133,054654,420
29,204,180
39,724
225,350ASSETS
Current assets:
Cash and time deposits
Short-term investment securities
Deferred tax assets
Short-term loans receivable to subsidiaries and affiliates

Noncurrent assets:
Property, plant and equipment:
Buildings, net
Tools, furniture and fixtures, net
Lease assets
Total property, plant and equipment
Intangible assets:
SoftwareLease assets
Total intangible assets
Investments and other assets:
Investment securities
Stocks of subsidiaries and affiliates
Deferred tax assets
Other
Total investments and other assets
Total noncurrent assets
Total assets― 25 ―

29,366,990

30,123,674

29,424,799

30,183,581

32,828,346

33,560,664

(Thousands of yen)
End of the Fiscal Year Ended
February 29, 2012
(As of February 29, 2012)

End of the Fiscal Year Ended
February 28, 2013
(As of February 28, 2013)

8,254,270
14,85523,2895,797
27,401
12,89016,1505,666

9,021,573
19,142
22,524
8,812
44,611
17,05016,70014,7598,360,321

9,165,175

330,700
43,266
1,632
89,82022,200243,160
42,0792,864
105,120
22,900

LIABILITIESCurrent liabilities:
Short-term loans payable
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Noncurrent liabilities:
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors retirement benefits
Other487,618

416,123

Total liabilities

Total noncurrent liabilities

8,847,939

9,581,298

NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Legal reserve

2,486,520

2,486,520

14,838,777

14,838,777

14,838,777

14,838,777

Total capital surplus
Retained earnings:
Profit reserve
Other retained earnings
Other reserve
Retained earnings brought forward

417,300

417,300

6,794,500
99,3096,794,500
287,358
7,499,158

Total retained earnings

7,311,109

Treasury stock(669,559)(864,066)

Total shareholders’ equity

23,966,847

23,960,389

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets― 26 ―

(726)

(218)

(726)

(218)

14,82619,19523,980,406

23,979,365

32,828,346

33,560,664

(2) Non-Consolidated Statements of Income(Thousands of yen)
Fiscal 2011
(March 1, 2011 to

Fiscal 2012
(March 1, 2012to

February 29, 2012)

February 28, 2013)

Operating revenue

1,306,610

1,524,027

Operating gross profit

1,306,610

1,524,027

7,458
92,119101,171
12,89016,1501,911
25,71025,131
34,26628,556
5,796
22,361
15,327
94,22045,57391,080133,978
17,05016,7001,232
15,30030,855
13,44534,921
8,472
19,376
18,56999,826

Selling, general and administrative expenses
Advertising expenses
Directors' compensations
Salaries and allowance
Provision for bonuses
Provision for directors' bonuses
Retirement benefit expenses
Provision for directors' retirement benefits
Legal welfare expenses
Welfare expenses
Business consignment expenses
Leasehold and office rents
Commission fee
Depreciation
Other

483,071546,380

Operating income

Total Selling, general and administrative expenses

823,539

977,646

Non-operating income
Interest income
Dividend income
Gain on forfeiture of unclaimed dividends
Other

15,575
54
1,809
601

14,352
54
2,397
589

18,04017,39542,994
2,827

41,688
1,895

Total Non-operating income
Non-operating expenses
Interest expenses
Other45,822

43,583

Ordinary income

Total non-operating expenses

795,757

951,457

Extraordinary expenses
Loss on disaster

18,512－

18,512－

Income before income taxes

777,245

951,457

Income taxes ― current
Income taxes ― deferred

107,339(4,110)159,662(10,422)

Total income taxes

103,228

149,239

Net income

674,016

802,218

Total extraordinary expenses― 27 ―

(3) Non-Consolidated Statements of Changes in Shareholders’ Equity, Valuation and Conversions(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Shareholders’ equity
Capital stock
Balance at the end of previous period

2,486,520

2,486,520

Balance at the end of current period

2,486,520

2,486,520

Balance at the end of previous period

14,838,777

14,838,777

Balance at the end of current period

14,838,777

14,838,777

Balance at the end of previous period

14,838,777

14,838,777

Balance at the end of current period

14,838,777

14,838,777

Capital surplus
Legal capital surplus

Capital surplus

Retained earnings
Legal retained earnings
Balance at the end of previous period

417,300

417,300

Balance at the end of current period

417,300

417,300

Other retained earnings
General reserve
Balance at the end of previous period

6,794,500

6,794,500

Balance at the end of current period

6,794,500

6,794,500

805,927

99,309(578,074)(614,169)
802,218

Retained earnings brought forward
Balance at the end of previous period
Total changes of items during the period
Dividends from surplus
Net income

674,016

Retirement of treasury stock(802,559)－

Total changes of items during the period(706,618)

188,049

99,309287,358

8,017,727

7,311,109

Dividends from surplus(578,074)(614,169)

Net income

674,016

802,218

Retirement of treasury stock(802,559)－

Balance at the end of current period
Total retained earnings
Balance as of the end of previous period
Changes of items during the period

Total changes of items during the period(706,618)

188,049

7,311,109

7,499,158(736,095)(370,844)

Purchase of treasury stock(437,308)(285,799)

Retirement of treasury stock

802,559－

Total changes of items during the period

365,250(285,799)

Balance at the end of current period(370,844)(656,644)

Balance as of the end of previous period
Treasury stock
Balance as of the end of previous period
Changes of items during the period― 28 ―

(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Treasury stock (held by Employee Stock Ownership
Trust)
Balance as of the end of previous period(401,004)(298,714)

Changes of items during the period
Sales of treasury stock from Employee Stock
Ownership Trust

102,289

91,292102,289

91,292(298,714)(207,422)(1,137,099)(669,559)

Purchase of treasury stock(437,308)(285,799)

Retirement of treasury stock
Sales of treasury stock from Employee Stock
Ownership Trust

802,559－

102,289

91,292

Total changes of items during the period
Balance at the end of current period
Total treasury stock
Balance as of the end of previous period
Changes of items during the period

Total changes of items during the period
Balance at the end of current period

467,539(194,506)(669,559)(864,066)

24,205,925

23,966,847(578,074)(614,169)

Total shareholders’ equity
Balance as of the end of previous period
Changes of items during the period
Dividends from surplus
Net income

674,016

802,218

Purchase of treasury stock
Sales of treasury stock from Employee Stock
Ownership Trust(437,308)(285,799)

102,289

91,292

Total changes of items during the period
Balance at the end of current period(239,078)(6,457)23,966,847

23,960,389

145

(726)

(872)

507

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period

(872)

507

(726)

(218)

145

(726)

(872)

507

(872)

507

(726)

(218)

5,483

14,286

8,802

4,908

8,802

4,908

14,28619,195

Deferred gains or losses on hedges
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance as of the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period― 29 ―

(Thousands of yen)
Fiscal 2011
(March 1, 2011 to
February 29, 2012)

Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Net assets
Balance as of the end of previous period

24,211,554

23,980,406(578,074)(614,169)

Changes of items during the period
Dividends from surplus
Net income

674,016

802,218

Purchase of treasury stock
Sales of treasury stock from Employee Stock
Ownership Trust
Net changes of items other than shareholders'equity(437,308)(285,799)

102,289

91,292

7,930

5,416

Total changes of items during the period(231,147)(1,041)

23,980,406

23,979,365

Balance at the end of current period― 30 ―5.

OTHER(1) Changes and movements of directors
a. Changes and movements of representative directors
Not applicable.
b. Changes and movements of other directors
Candidate for new appointment as a director
Director
Toshifumi Kurume(Currently Executive Director, F.D.C. Products, Inc.)c.

Appointment as an alternate corporate auditor
Candidate for new appointment as an alternate corporate auditor
Kiyoshi Shin
(Currently Attorney at Law)

― 31 ―