Summary of Financial Results for the Fiscal Year Ended February 28, 2010
April 2, 2010

Company name:

POINT INC.

Listing: TSE 1st section
URL: http://www.point.co.jp

Stock code:
Representative:
Contact:

2685
Yoichi Endo, Representative Director, Senior Managing Executive Officer
Tsuyoshi Matsuda, Director, Corporate Officer, General Manager of Administration Division
Tel: +81-3-3243-6011
Scheduled date of Annual General Meeting of Shareholders: May 27, 2010
Scheduled date of payment of dividend:
May 12, 2010
Scheduled date of filing of Annual Securities Report:
May 28, 2010
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended February 28, 2010
(March 1, 2009 – February 28, 2010)(1) Consolidated results of operations(Percentages shown for net sales, operating income, ordinary income and net income represent year-on-year changes)
Net sales

Operating income

Ordinary income

Million yen%

Million yen%

Million yen

97,68486,705

12.7
17.3

16,91015,772

7.2
21.7

17,05815,947

Fiscal year ended Feb. 28, 2010
Fiscal year ended Feb. 28, 2009

Net income%Million yen

7.0
22.4%9,516
8,089

17.6
8.0

Net income
per share

Diluted net
income per share

ROE

Ratio of ordinary
income to total assets

Ratio of operating
income to net sales

YenYen%%%Fiscal year ended Feb. 28, 2010
391.13Fiscal year ended Feb. 28, 2009328.89(Reference) Equity in earnings of affiliates

Feb. 28, 2010:

31.8
33.2
(41) million yen

33.6
38.2
Feb. 28, 2009:

17.3
18.2
(6) million yen(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%YenAs of Feb. 28, 2010
As of Feb. 28, 2009
(Reference) Shareholders’ equity

55,66045,885
Feb. 28, 2010:

33,69826,56533,520 million yen

60.2
1,377.64
57.6
1,086.09
Feb. 28, 2009: 26,426 million yen(3) Consolidated cash flow position
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the period

Million yen

Million yen

Million yen

Million yen

Fiscal year ended Feb. 28, 2010
Fiscal year ended Feb. 28, 2009

12,722
12,650(4,230)(1,980)(2,606)(4,165)

26,20020,302

2. Dividends
Dividend per share

Fiscal year ended Feb. 28, 2009
Fiscal year ended Feb. 28, 2010
Fiscal year ending Feb. 28, 2011
(forecast)

1Q-end2Q-end3Q-endYearend

Yen

Yen

Yen

Total

Total
dividends
Million yen

Yen

Yen

-

40.00
50.00

-

60.00
70.00

100.00120.00

-

50.00

-

70.00

120.00

Dividend on
Dividend
equitypayout ratio(consolidated) (consolidated)
%

2,450
2,919

%

30.4
30.7

10.1
9.7

29.5

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2011 (March 1, 2010 – February 28, 2011)(Percentages represent year-on-year changes)
Net sales
Million yen

First half
Full year

48,000107,500%

9.7
10.0

Operating income

Ordinary income

Million yen

Million yen

6,900
17,800%

2.6
5.3

7,000
17,900- 1 -%

3.2
4.9

Net income
Million yen

3,600
9,900

Net income per share%(8.6)
4.0

Yen

147.95406.87

POINT INC. (2685) Summary of Financial Results for February 2010 Fiscal Year

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: POINT (Shanghai) Co., Ltd.

(2) Changes in accounting principles, procedures and presentation methods for preparation of consolidated financial
statements
1) Changes caused by revision of accounting standards: Yes
2) Other changes: Yes(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at end of period (including treasury stock)
Feb. 28, 2010:

25,990,720 sharesFeb. 28, 2009:

25,990,720 sharesFeb. 28, 2009:

1,658,593 shares

2) Number of treasury stock at end of period
Feb. 28, 2010:

1,658,604 shares(For reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2010
(March 1, 2009 – February 28, 2010)(1) Non-consolidated results of operations(Percentages represent year-on-year changes)

Net sales
Million yen%

95,68085,562

11.8
17.0

Fiscal year ended Feb. 28, 2010
Fiscal year ended Feb. 28, 2009

Operating income

Ordinary income

Million yen%

Million yen%

Million yen%

5.9
22.3

16,73315,8085.9
22.99,274
8,037

15.4
8.5

16,472
15,551

Net income per share

Diluted net income pershare

Yen

Yen

Fiscal year ended Feb. 28, 2010
Fiscal year ended Feb. 28, 2009

381.18326.77

Net income-(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of Feb. 28, 2010
As of Feb. 28, 2009
(Reference) Shareholders’ equity

54,60545,413Feb. 28, 2010:

33,051
26,24633,027 million yen

60.5
1,357.37
57.6
1,075.95
Feb. 28, 2009: 26,180 million yen

2. Non-consolidated Forecast for the Fiscal Year Ending February 28, 2011 (March 1, 2010 – February 28, 2011)(Percentages represent year-on-year changes)
Net sales
Million yen

First half
Full year

47,000105,000

Operating income

Ordinary income%

Million yen%

Million yen

9.6
9.7

6,800
17,600

3.5
6.8

6,900
17,800%

2.6
6.4

Net income
Million yen

3,500
9,800

Net income per share%(11.3)
5.7

Yen

143.84402.76* Cautionary statement with respect to forward-looking statements
Forward-looking statements in this report are based on currently available information and certain assumptions judged to bereasonable. Actual results may differ significantly from these forecasts for a number of factors.

- 2 -POINT INC. (2685) Summary of Financial Results for February 2010 Fiscal Year

1. Results of Operations(1) Analysis of Results of Operations
1) Results of operations for the current fiscal year
In the current fiscal year (March 1, 2009 to February 28, 2010), there was a growing consensus that the Japanese
economy gradually picked up thanks to benefits from various domestic and overseas stimulus measures, although
the self-sustainability of the recovery in domestic private demand remained weak.
In the casual wear market in which our group operates, consumption remained weak in the context of ongoing harsh
employment and income conditions, and due to consumers’ more defensive spending stance and their growing
preference for low-priced items.
In this environment, we continued to grow as consolidated net sales increased 12.7% to 97,684 million yen.
All of our brands steadily increased sales owing to newly opened stores among other factors, while domestic
existing-store sales were 97.3% of the previous year’s level.
The LEPSIM LOWRYS FARM, HEATHER, JEANASIS and APART BY LOWRYS brands continued to account for an
increasing share of total sales. In particular, there were large increases in sales of LEPSIM LOWRYS FARM andHEATHER. As a result, the percentage of sales from these four brands increased to 31.5% in the current fiscal year
compared with 27.8% in the previous fiscal year.
We launched the repipi armario brand during the fiscal year but suspended activities of the TRANS CONTINENTS
brand.
We continued to aggressively open new stores during the fiscal year: we opened 87 new stores, including
e-commerce websites, and closed 10, resulting in a network of 627 stores at the end of the fiscal year.
We opened more COLLECT POINT stores, which are large integrated stores, following the opening of the flagship
COLLECT POINT Harajuku store. At the end of the fiscal year, there were four of these stores in Japan.
In Taiwan, subsidiary POINT TW INC. opened two COLLECT POINT stores in Taipei and closed two other storesin Taipei. At the end of the fiscal year, this subsidiary had 17 stores.
In Hong Kong, POINT HOLDING CO., LTD., in which we have a 75% equity stake, opened five stores during thefiscal year, mainly COLLECT POINT. At the end of the fiscal year, this subsidiary had 13 stores as the company
continued to make steady progress in expanding its network.
In China, POINT (Shanghai) Co., Ltd., which is a wholly owned subsidiary of POINT HOLDING CO., LTD.,
opened its first store in October in Shanghai.
These store openings increased the number of stores outside Japan to 31 as of the end of the fiscal year.
Regarding profits, the gross profit margin stayed at a high level of 60.5% as we optimally controlled procurement,
inventories, and sales price revisions.
The SG&A-to-sales ratio rose 0.9 points year-on-year to 43.2% mainly due to aggressive and strategic store
development in domestic and overseas markets, and an increase in expenses from the expansion of results-basedincentives. The operating income margin declined 0.9 points to 17.3%.
We booked an extraordinary gain of 66 million yen from the reversal of subscription rights to shares following theexpiration of stock options and gain of 85 million yen from sales of subsidiaries and affiliates’ stocks. However, wealso booked extraordinary losses including loss on retirement of noncurrent assets of 72 million yen, loss on
cancellation of store rental contracts of 243 million yen, impairment losses at three stores of 61 million yen, loss on
liquidation of the TRANS CONTINENTS business unit of 248 million yen and loss on valuation of investment
securities of 463 million yen.
As a result, consolidated net sales in the current fiscal year increased 12.7% year-on-year to 97,684 million yen,operating income increased 7.2% to 16,910 million yen, ordinary income increased 7.0% to 17,058 million yen, andnet income increased 17.6% to 9,516 million yen.

- 3 -POINT INC. (2685) Summary of Financial Results for February 2010 Fiscal Year

(2) Analysis of Consolidated Financial Condition
1) Balance sheet position(Assets)
Current assets increased 7,415 million yen from as of February 28, 2009 to 35,839 million yen as of February 28,
2010. This was mainly due to an increase in short-term investment securities (commercial papers and treasury
discount bills).
Noncurrent assets increased 2,359 million yen to 19,820 million yen. This was mainly due to increases in store
interior equipment, and lease and guarantee deposits.
As a result, total assets increased 9,774 million yen to 55,660 million yen.
(Liabilities)
Current liabilities increased 2,304 million yen to 21,478 million yen. This was mainly due to increases in accounts
payable-trade and accounts payable-other.
Noncurrent liabilities increased 338 million yen to 484 million yen. This was mainly due to an increase in provision
for middle-term achievement-linked bonuses.
As a result, total liabilities increased 2,642 million yen to 21,962 million yen.
(Net assets)
Net assets rose 7,132 million yen to 33,698 million yen mainly due to an increase in retained earnings.
2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of February 28, 2010 amounted to 26,200 million yen, or
5,897 million yen more than as of February 28, 2009.
A summary of cash flows from each activity is as follows.
(Cash flows from operating activities)
Net cash provided by operating activities totaled 12,722 million yen (an increase of 71 million yen, compared to theprevious fiscal year). The main factors include income before income taxes mainly from higher sales of 16,120
million yen and income taxes paid of 7,335 million yen.
(Cash flows from investing activities)
Net cash used in investing activities totaled 4,230 million yen (an increase of 2,249 million yen). This was mainly
due to the payments of 3,367 million yen for purchase of property, plant and equipment and 1,279 million yen forlease and guarantee deposits, both of which are caused by new store openings.
(Cash flows from financing activities)
Net cash used in financing activities totaled 2,606 million yen (a decrease of 1,559 million yen). This was mainly
due to cash dividends paid of 2,674 million yen.

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