CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
NINE-MONTH PERIOD OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2013
(March 1, 2012 to November 30, 2012)
January 8, 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:

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): January 11, 2013
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): No(Millions of yen rounded down)

1. Consolidated Operating Results for Nine-Month Period of Fiscal 2012
(March 1, 2012 to November 30, 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

FY2012Nine-Month Period
FY2011
Nine-Month Period

Millions of yen％

34,3604.3

32,954(0.6)(Note) Comprehensive income:％Millions of yen％

Millions of yen

％

2,837

34.2

3,225

39.5

1,464

33.0

2,114

55.8

2,312

35.9

1,100

209.3

Millions of yen

FY2012 Nine-Month Period: 1,394 million yen (43.5%)
FY2011 Nine-Month Period: 971 million yen (—%)

Net Income
per Share

Net Income per
Share after Dilution
Yen

FY2012Nine-Month Period
FY2011
Nine-Month Period

Yen

53.40

—

39.75

—

(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
Net Assets per Share
Assets%Yen

Millions of yen

Millions of yen

November 30, 2012

54,03739,60073.2

1,445.24

February 29, 2012

51,142

38,83775.9

1,415.84(Reference)
Shareholders’ equity: November 30, 2012: 39,580 million yen

February 29, 2012: 38,821 million yen

2. Dividends
Annual Cash Dividends per Share
(Record Date)
Fiscal 2011
Fiscal 2012
Fiscal 2012
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

10.00
10.50

—
—

11.00

21.00

11.50

22.00

(Note) Revisions to consolidated operating forecasts as of the end of the current quarter: No
Breakdown of period-end cash dividend for the fiscal year ending February 2013:
Ordinary cash dividend ¥10.50
Special cash dividend ¥1.00-1-

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

Fiscal year
endingFebruary 28,
2013

48,000%

2.8

Millions of yen

%

4,200

22.6

Millions of yen

4,700

%

20.8

Millions of yen

2,500

%

Yen

26.9

91.15

(Note) Revisions to consolidated operating forecasts as of the end of the current quarter: No
Notes(1) Changes in Important Subsidiaries during the Period(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
Note: Application of the simplified accounting method and special accounting practices in the preparation ofquarterly consolidated financial statements.

(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:
November 30, 2012: 29,331,356 sharesFeb. 29, 2012: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
November 30, 2012: 1,944,446 sharesFeb. 29, 2012: 1,911,731 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2012 Nine-Month Period: 27,426,420 shares FY2011 Nine-Month Period: 27,689,031 shares
Note: The number of recorded treasury stock is inclusive of 247,400 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 nine-month period 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 disclosureof this report, the review procedures for the quarterly financial statements under the Financial Instruments
and Exchange 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 Regarding Forecasts of Consolidated Business Results” on page 5 forassumptions of the revision of forecasts of business results.

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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 Results5

Summary Information (Notes)

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

Third Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income

Third 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 third quarter cumulative period of fiscal 2012 (March 1, 2012 to November 30, 2012), theJapanese economy continued to gently recover from the stagnation following the Great East Japan
Earthquake, on the back of recovery demand. However, the outlook for the economy remained clouded bysuch factors as a slowdown in exports and sluggish capital expenditures, stemming mainly from theEuropean debt crisis and stagnant economic growth in developing countries.
In the retail industry, harsh business conditions remained as a result of increasing thriftiness and priceconsciousness on the part of consumers, as well as inclement weather.
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, by providing
returns to shareholders, and by making longer term investments linked to earnings growth.
As a result, operating revenues for the third quarter cumulative period of the subject fiscal year
amounted to ¥34,360 million (up 4.3% from the same period of the previous fiscal year). Operating income
totaled ¥2,837 million (up 34.2%), with ordinary income of ¥3,225 million (up 39.5%) and net income of¥1,464 million (up 33.0%).
Operating income, ordinary income and net income reached record high levels during the subject fiscal
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 a considerable rise in sales and operating income from the same period of
the previous fiscal year, due mainly to strong performance at existing locations of its mainstay 4°C brandjewelry stores following the opening of the new 4°C Pregence zone. Results were also buoyed by continued
positive performance at the expanding network of 4°C BRIDAL and canal 4°C stores.
As a result, segment operating revenues amounted to ¥16,429 million (up 9.4% from the same period of
the previous fiscal year), with operating income of ¥2,345 million (up 33.1%).
The AS’TY GroupThe AS’TY group took steps to strengthen project planning capabilities in the apparel manufacturingbusiness, centered on OEM, while also working to expand sales. Sales were up year on year, and operating
income rose substantially as a result of positive trends in relationships with existing business partners, andsteady efforts to cultivate new partners.
As a result, segment operating revenues amounted to ¥7,880 million (up 6.3% from the same period of
the previous fiscal year), with operating income of ¥582 million (up 59.5%).
MISUZUMISUZU Co., Ltd. took steps to enhance its brand value and strengthen SPA (Specialty store retailer ofPrivate label Apparel) functions. However, sales and operating income declined from the same period of theprevious fiscal year, due mainly to a falloff in customers and inclement weather.
As a result, segment operating revenues amounted to ¥4,484 million (down 8.5% from the same periodof the previous fiscal year), with operating income of ¥64 million (down 62.9%).
âgeAlthough âge Co., Ltd.’s mainstay everyday fashion brand PALLET performed strongly, sales were downslightly from the same period of the previous fiscal year as a result of slow returns from LOU and RAPPORT.
Operating income, however, rose substantially from a year earlier as a result of improvement in the grossmargin percentage.
As a result, segment operating revenues amounted to ¥5,566 million (down 1.0% from the same periodof the previous fiscal year), with operating income of ¥113 million (up 17.9%).

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(2) Qualitative Information Regarding Consolidated Financial Position
Assets, Liabilities and Net Assets
Total assets at the end of the subject third quarter cumulative period (November 30, 2012) amounted to¥54,037 million, an increase of ¥2,895 million from the end of the previous fiscal year (February 29, 2012).
This was due mainly to an increase of \2,387 million in merchandise and finished goods. Total liabilities
amounted to ¥14,437 million, an increase of ¥2,132 million from the end of the previous fiscal year. This wasdue mainly to increases of \1,247 million in notes and accounts payable—trade; and ¥459 million in
short-term loans payable. Total net assets at the end of the subject period amounted to ¥39,600 million, an
increase of ¥762 million from the end of the previous fiscal year.

(3) Qualitative Information Regarding Forecasts of Consolidated Business Results
Earnings forecasts are unchanged from those announced on October 9, 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.
Application of the Accounting Standard for Earnings per Share
Effective from the first quarter of the fiscal year under review, the Company has adopted the AccountingStandard for Earnings per Share of the Accounting Standards Board of Japan (ASBJ), ASBJ Standard
No. 2 issued on June 30, 2010 as well as the Guidance on Accounting Standard for Earnings per ShareASBJ Guidance No. 4 issued on June 30, 2010.
In calculating diluted net income per share, the Company has switched, for stock options whoserights go into effect after a fixed period, to the method of adding to expected income from the exerciseof rights the portion of the fair value of stock options that relate to future services provided to theCompany.
There was no impact from this change.
(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 Third Quarter of
the Fiscal Year Ending
February 28, 2013
(As of November 30, 2012)

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

544,040
4,557,614
7,592,565
139,274
390,156
1,071,633(1,712)

11,974,758

14,293,573

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

5,690,498
5,814,077
669,288

11,841,047

12,173,863

Intangible assets:
Goodwill
Other intangible assets

7,271,736
192,3426,863,149
646,019

Total intangible assets

7,464,079

7,509,169

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

13,350,002
1,996,816
5,302,841(588,483)

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

20,061,178

39,167,839

39,744,211

51,142,598

54,037,784

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 Third Quarter of
the Fiscal Year Ending
February 28, 2013
(As of November 30, 2012)

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

5,247,934
557,400
375,910510,640
43,9133,207,381

8,530,067

9,943,179

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

398,575
537,671456,781873,8222,227,035

3,774,597

4,493,886

Total liabilities

12,304,664

14,437,066

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
20,570,596(1,497,994)

39,030,717

39,859,426

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)

33,0499,060(264,512)(56,406)

Total other accumulated comprehensive income(208,866)(278,808)

14,286
1,796

18,566
1,533

38,837,933

39,600,718

51,142,598

54,037,784

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
Third Quarter Cumulative(Thousands of yen)
Nine-Month Period of the
Fiscal Year Ended
February 29, 2012
(March 1, 2011 toNovember 30, 2011)

Nine-Month Period of the
Fiscal Year Ending
February 28, 2013
(March 1, 2012 toNovember 30, 2012)

Net sales
Cost of Sales

32,198,292
14,997,184

33,629,791
15,397,806

Gross profit

17,201,108

18,231,985

Other operating revenue

756,459

730,730

Operating gross profit

17,957,568

18,962,715

Selling, general and administrative expenses

15,842,986

16,125,494

Operating income

2,114,581

2,837,221

Foreign exchange gains
Subsidy income
Other

1,867
39,811
22,51470,83010,60661,432
33,2401,495
42,865236,22166,172
19,74418,90230,645

Total non-operating income

240,302416,047

24,246
18,06911,152
16,809Non-operating income
Interest income
Dividends received
Equity in earnings of affiliates
Rent of real estate for investment

Non-operating expenses
Interest expenses
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 consumer taxes for prior periods
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets

42,31527,961

2,312,568

3,225,306

585
0
668

77,915244―

14,000121,027―

122,281

92,15923,386
21,713
163,299
20,783
13,971

Loss on valuation of investment securities
Impairment loss
Loss on closing of stores
Demolition expenses
Loss on disaster
Loss on valuation of golf club membership
Loss on withdrawal from employees’ pension fund
Other

―

―

―
4,036
155,425
52,8289,935
18,00042,910―――23,004
183,983

1,061―

Total extraordinary losses

287,125

543,611Net income before income taxes

2,147,724

2,773,855

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

657,278
61,183328,845

981,110―
328,550

Total income taxes

1,047,261

1,309,661

Income before minority interests

1,100,462

1,464,194

Minority interests in income (loss)
Net income

-8-

(254)

(263)

1,100,717

1,464,457

Consolidated Quarterly Statements of Comprehensive Income
Third Quarter Cumulative(Thousands of yen)
Nine-Month Period of the
Fiscal Year Ended
February 29, 2012
(March 1, 2011 toNovember 30, 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

1,100,462

1,464,194(105,303)
3,880(10,294)(20,575)(5,563)(6,233)(16,842)(37,568)(128,559)(69,941)
1,394,252

971,902
972,157(254)

Comprehensive income attributable toComprehensive income attributable to owners of the parent-9-

Nine-Month Period of the
Fiscal Year Ending
February 28, 2013
(March 1, 2012 toNovember 30, 2012)

1,394,515(263)

(3) Notes Regarding Going Concern Assumptions
Not applicable(4) Segment Information
Ⅰ The nine-month period of the fiscal year ended February 29, 2012
(March 1, 2011 to November 30, 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)

32,954,752―

32,954,752

138,2291,294,831(1,294,831)―

4,946,724

5,760,546

34,249,584(1,294,831)

32,954,752

173,203

96,0572,396,359(281,778)

2,114,581

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUâge

Total

15,015,133

7,415,631

4,901,669

5,622,317

17,327

1,094,220

45,054

Total

15,032,461

8,509,851

Segment income

1,762,010

365,087

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Notes:
1. The adjustment amount of minus ¥281,778 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 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 nine-month period of the fiscal year ending February 28, 2013
(March 1, 2012 to November 30, 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)

34,360,522―

34,360,522

134,176

1,300,469(1,300,469)―

4,522,883

5,700,818

35,660,991(1,300,469)

34,360,522

64,231

113,252

3,105,467(268,246)

2,837,221

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUâge

Total

16,429,578

7,880,200

4,484,101

5,566,641

30,4781,097,032

38,782

Total

16,460,056

8,977,232

Segment income

2,345,822

582,160

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Notes:
1. The adjustment amount of minus ¥268,246 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 figures have been adjusted to operating income on the consolidated quarterly income statements.

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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 -