CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2014
(March 1, 2013 to May 31, 2013)
July 1, 2013
F&A Aqua Holdings, Inc. is listed on the First Section of the Tokyo Stock Exchange under the securities code number 8008.
Representative:

Hidenori Suzuki, President and Representative DirectorInquiries:

Masahiko Nishimura, Director and General Manager Operations Dept.

Tel: +81-3-5719-3429
URL: http://www.fa-aqua.co.jp
Quarterly Securities Report filing date (planned): July 12, 2013
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 2013
(March 1, 2013 to May 31, 2013)(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 FY2013

11,6182.0

1Q FY2012

11,386

7.9Net Incomeper Share％

Millions of yen％

Millions of yen％

1,091(2.3)

1,288(5.5)

827

24.0

1,117

83.9

1,363

136.1

667

624.2

Millions of yen

Net Income per
Share after Dilution
YenYen1Q FY2013

30.34

30.28

1Q FY2012

24.32—Note: Comprehensive income 1Q FY2013: 1,110 million yen (148.3%)

1Q FY2012: 447 million yen (—%)

(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share%

Yen

Millions of yen

Millions of yen

54,201

41,97577.4

1,536.55

February 28, 201353,295
41,106(Reference)
Shareholders’ equity: May 31, 2013: 41,964 million yen
February 28, 2013: 41,086 million yen

77.1

1,509.31

May 31, 2013

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2012
Fiscal 2013
Fiscal 2014
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

10.50

—

11.50

22.00

12.50

—

12.50

25.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 28, 2014: No-1-3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2014
(March 1, 2013 to February 28, 2014)(% figures for the full fiscal year represent year-on-year increase or decrease)
Net Income
Operating Income
Ordinary Income
Net Incomeper ShareNet Sales
Millions of yen

Interim period
Fiscal yearendingFebruary 28,
2014%Millions of yen%

Millions of yen%

Millions of yen%

Yen

23,0001.7

1,900(3.2)

2,250(2.0)

1,200

14.5

44.00

50,000

3.7

4,750

10.7

5,400

10.6

3,050

9.5

111.83

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 28,
2014: NoNotes(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: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: Yes
4) Retrospective restatement: NoNote: These are subject to Article 10-5 of the Ordinance on Terminology, Forms and Preparation
Methods of Quarterly Financial Statements. For more detailed information, please see thesection “2. Summary Information (Notes)” on page 5.
(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, 2013: 29,331,356 sharesFeb. 28, 2013: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2013: 2,020,768 sharesFeb. 28, 2013: 2,109,450 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidatedperiod)First quarter fiscal 2013: 27,274,160 shares First quarter fiscal 2012: 27,432,142shares
Note: The number of recorded treasury stock is inclusive of 206,300 of the Company’s shares
held by the F&A Aqua Holdings Employees’ Shareholding Association Trust Account as ofthe end of the quarterly period.
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the first quarter of fiscal 2013 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.
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 arebased on 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 actualresults 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 “QualitativeInformation Regarding Forecasts of Consolidated Business Results” on page 5.

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Contents
1.

2.

Qualitative Information Regarding Consolidated Quarterly Business Results4(1)Qualitative Information Regarding Consolidated Operating Results4(2)Qualitative Information Regarding Consolidated Financial Position

4(3)Qualitative Information Regarding Forecasts of Consolidated Business Results5

Summary Information (Notes)

5(1)Changes in Important Subsidiaries During the Period5(2)Application of Special Accounting Practices in the Preparation of the Quarterly

5Consolidated Financial Statements(3)
3.

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

5Consolidated Quarterly Financial Statements

6(1)Consolidated Quarterly Balance Sheets

6(2)Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of8

Comprehensive Income
Consolidated Quarterly Statements of Income

First Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income

First Quarter Cumulative89(3)Notes Regarding Going Concern Assumptions

10(4)Notes Regarding Substantial Changes in Shareholders’ Equity

10(5)Segment Information

10-3-1. Qualitative Information Regarding Consolidated Quarterly Business Results(1) Qualitative Information Regarding Consolidated Operating Results
During the first quarter period of fiscal 2013 (March 1, 2013 to May 31, 2013), the Japanese economy
trended toward gentle recovery on the back of the correction to the strong yen and rising share prices
stemming from the expectations for economic and fiscal policy. However, the outlook for the economy
remained clouded by such factors as the slowdown in the European economy, and sluggish economic
growth in developing countries.
In the retail industry, despite a bright outlook in certain areas, such as robust sales of high-priced
items due to the wealth effect, harsh business conditions remained as a result of rising prices for natural
resources due to the weakening currency, and a lack of prospects for improvement in incomes.
Under such conditions, the F&A Aqua Holdings Group, with fiscal 2013 as the second 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¥11,618 million (up 2.0% from the same period of the previous fiscal year). Operating income totaled¥1,091 million (down 2.3%), with ordinary income of ¥1,288 million (down 5.5%) and net income of¥827 million (up 24.0%).
Net income reached a new record high for the first quarter period.
Note: Operating revenues are the sum total of net sales and other operating revenues.
Operating results by business segment were as follows.
The F.D.C. Products GroupThe F.D.C. Products group posted year-on-year increases in both sales and operating income from thesame period of the previous fiscal year, due mainly to a strong effort for fashion jewelry at mainstay
4°C brand jewelry, along with an aggressive program of store openings for 4°C BRIDAL and canal 4°Cstores.
As a result, segment operating revenues amounted to ¥5,480 million (up 6.1% from the same
period of the previous fiscal year), with operating income of ¥844 million (up 2.0%).
The AS’TY GroupThe AS’TY strengthened its project planning capabilities in the apparel manufacturing business, andtook steps to enhance sales activities, but sales and operating income both declined from the same
period of the previous fiscal year as a result of higher costs due to the weak yen, and business
contraction at subsidiaries.
As a result, segment operating revenues amounted to ¥2,717 million (down 7.1% from the same
period of the previous fiscal year), with operating income of ¥236 million (down 20.6%).
MISUZUMISUZU Co., Ltd. achieved an increase in sales as a result of an aggressive sales promotion campaign,efforts to enhance the appeal of individual items, and positive sales at new stores. Earnings, however,declined from the same period of the previous fiscal year as costs increased.
As a result, segment operating revenues amounted to ¥1,587 million (up 1.6% from the same
period of the previous fiscal year), with operating income of ¥51 million (down 34.4%).
âgeâge Co., Ltd. posted year-on-year increases in both sales and operating income from the same period of
the previous fiscal year, due mainly to steady sales at existing locations of the company’s mainstay
everyday fashion brand PALLET.
As a result, segment operating revenues amounted to ¥1,833 million (up 5.9% from the sameperiod of the previous fiscal year), with operating income of ¥11 million (up 13.9%).
(2) Qualitative Information Regarding Consolidated Financial Position
Assets, Liabilities and Net AssetsTotal assets at the end of the subject first quarter period (May 31, 2013) amounted to ¥54,201 million,
an increase of ¥906 million from the end of the previous fiscal year (February 28, 2013). This was due-4-

mainly to increases of ¥1,220 million in notes and accounts receivable―trade; and ¥609 million inmerchandise and finished goods; against a decrease of ¥1,240 million in short-term investment
securities. Total liabilities amounted to ¥12,225 million, an increase of ¥36 million from the end of theprevious fiscal year. This was due mainly to an increase of ¥694 million in notes and accounts
payable—trade; against a decrease of ¥548 million in income taxes payable. Total net assets at the endof the subject period amounted to ¥41,975 million, an increase of ¥869 million from the end of theprevious fiscal year.
(3) Qualitative Information Regarding Forecasts of Consolidated Business Results
Earnings forecasts are unchanged from those announced on April 15, 2013.
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:
Changes in Accounting Policies Difficult to Distinguish from Changes in Accounting Estimates
In accordance with revisions to the Corporation Tax Act, from the subject first quarter period, F&AAqua Holdings and its domestic consolidated subsidiaries have changed their accounting policy forproperty and equipment acquired on or after March 1, 2013, to the depreciation method based on therevised Corporation Tax Act.
The impact from this change on profit and loss for the subject first quarter period is minimal.

-5-3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year EndedFebruary 28, 2013
(As of February 28, 2013)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
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, 2014
(As of May 31, 2013)

521,769
3,149,732
1,590,000
5,842,888
447,256
464,404
979,526(216)

688,854
4,370,205
350,000
6,452,017
278,585
503,378
908,514(7,206)

12,995,001

13,544,349

5,389,917
5,617,629
678,4455,468,089
5,617,629
708,200

11,685,992

11,793,920

Intangible assets:
Goodwill
Other intangible assets

6,726,954
624,005

6,590,758
621,943

Total intangible assets

7,350,959

7,212,702

14,803,392
1,998,224
5,045,991(584,093)

15,273,985
2,018,549
4,941,933(583,792)

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-

21,263,515

21,650,676

40,300,467

40,657,299

53,295,468

54,201,648

５．
（要約）四半期連結財務諸表(Thousands of yen)
End of the Fiscal Year Ended
February 28, 2013
(As of February 28, 2013)
LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
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, 2014
(As of May 31, 2013)

3,810,018
855,113553,077
59,4502,895,275

4,504,555
306,715363,769
15,946
3,071,328

8,172,934

8,262,315

243,160
540,621
380,602845,241
2,006,268

243,160
540,046
300,692
884,051
1,995,520

4,015,894

3,963,470

Total liabilities

12,188,829

12,225,786

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

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

2,486,520
18,313,414
22,393,289(1,590,986)

41,007,484

41,602,238

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

617,065
12,525(264,512)(3,200)Total shareholders’ equity
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 other accumulated comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets-7-

78,789361,878

19,195
1,171

10,5701,175

41,106,639

41,975,862

53,295,468

54,201,648

(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 EndedFebruary 28, 2013
(March 1, 2012 toMay 31, 2012)

First Quarter of theFiscal Year Ending
February 28, 2014
(March 1, 2013 toMay 31, 2013)

Net sales
Cost of Sales

11,140,755
5,067,596

11,403,997
5,234,507

Gross profit

6,073,158

6,169,489

245,397

214,594

Other operating revenue
Operating gross profit

6,318,556

6,384,083

Selling, general and administrative expenses

5,200,662

5,292,214

Operating income

1,117,894

1,091,869

Foreign exchange gains
Other504
10,090205,582
21,6776,650
14,4182,116
10,197
148,791
22,0573,49214,624

Total non-operating income

258,923

201,279

3,702
3,300
1,564
4,958

139
1,914
1,542
1,546

Non-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 of real estate for investment
Other
Total non-operating expenses

13,5255,143

1,363,292

1,288,006

Loss on valuation of investment securities
Impairment loss
Loss on valuation of golf club membership

3,891
212,520
16,72820,804――

Total extraordinary losses

253,945

10,174

Net income before income taxes

Ordinary income
Extraordinary loss
Loss on retirement of noncurrent assets

10,174―

1,109,346

1,277,831

Income taxes ― current
Income taxes ― deferred

294,348
147,740

255,089
195,116

Total income taxes

442,089

450,206

Income before minority interests

667,257

827,624

Minority interests in income
Net income-8-953667,161

827,620

Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative(Thousands of yen)First Quarter of theFiscal Year EndedFebruary 28, 2013
(March 1, 2012 toMay 31, 2012)
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-9-First Quarter of theFiscal Year EndingFebruary 28, 2014
(March 1, 2013 toMay 31, 2013)

667,257

827,624(141,719)(18,647)
5,948

237,923(3,544)22,039(65,544)

26,670(219,963)
447,294

283,089
1,110,714

447,198
95

1,110,710
3

(3) Notes Regarding Going Concern Assumptions
Not applicable(4) Notes Regarding Substantial Changes in Shareholders’ Equity
Not applicable(5) Segment Information
Ⅰ The first quarter of the fiscal year ended 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 onconsolidated
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

12,7095,177,236

3,296,524

827,561

297,367

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

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 or loss figures have been adjusted to operating income on the consolidated quarterly incomestatements.

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.
ⅡThe first quarter of the fiscal year ending February 28, 2014 (March 1, 2013 to May 31, 2013)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
quarterlystatementsof income(Note 2)

11,618,591―

11,618,591

49,574

424,540(424,540)―

1,595,665

1,882,805

12,043,132(424,540)

11,618,591

51,944

11,543

1,143,703(51,833)

1,091,869

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUâgeTotal

5,480,502

2,717,287

1,587,571

1,833,230

9,327

357,543

8,093Total

5,489,830

3,074,831

Segment income

844,093

236,121

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Notes:
1. The adjustment amount of minus ¥51,833 thousand for segment income mainly includes corporate expenses that are notallocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not- 10 -2.

attributable to reporting segments.
Segment income 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 byReporting Segment
There was no major impairment loss recorded during the period under review.

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