Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending February 28, 2015
(Six Months Ended August 31, 2014)[Japanese GAAP]
September 30, 2014

Listing: TSE 1st section
Company name: Adastria Holdings Co., Ltd.
Stock code:
2685
URL: http://www.adastria.co.jp
Representative: Yoichi Endo, Representative Director, President
Contact:
Ryo Araya, General Manager, Corporate Strategy Department
Tel: +81-3-6895-6000
Scheduled date of filing of Quarterly Report:
October 15, 2014
Scheduled date of payment of dividend:
October 23, 2014
Preparation of supplementary materials for quarterly financial results:
Yes
Holding of quarterly financial results meeting:Yes (for investors)
Note: The original disclosure in Japanese was released on September 30, 2014 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 28, 2015
(March 1, 2014 – August 31, 2014)(1) Consolidated results of operations (cumulative)(Percentages represent year-on-year changes)

Net sales
Million yen

Six months ended Aug. 31, 2014
Six months ended Aug. 31, 2013
Note: Comprehensive income%

Operating income

Ordinary income

Million yen

Million yen%

Net income%

Million yen

88,05138.1
2,038 (45.9)
2,174 (45.4)
63,749
15.6
3,767
0.2
3,980
3.5
Six months ended Aug. 31, 2014:
726 million yen (down 75.8%)
Six months ended Aug. 31, 2013:
3,005 million yen (up 21.4%)
Net income per share

Diluted net income per share

Yen

Yen

Six months ended Aug. 31, 2014
Six months ended Aug. 31, 2013
Reference: EBITDA

4.51
96.04
Six months ended Aug. 31, 2014:
Six months ended Aug. 31, 2013:

EPS before goodwill amortization

%

109
2,090

(94.8)
(3.6)

4.51
96.03
6,517 million yen (up 0.4%)
6,490 million yen

Six months ended Aug. 31, 2014:
Six months ended Aug. 31, 2013:54.25 yen (down 52.7%)
114.63 yen(*) For more details regarding definition, computational method and other matters of these indices, please refer to the section“Explanation of Results of Operations” on page 2.
(2) Consolidated financial position

As of Aug. 31, 2014
As of Feb. 28, 2014
Reference: Shareholders’ equity

Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of Aug. 31, 2014:

83,111
78,84144,898 million yen

44,90344,786
As of Feb. 28, 2014:

54.0
56.8
44,780 million yen

2. Dividends
1Q-end2Q-endDividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2014
50.00
Fiscal year ending Feb. 28, 2015
30.00
Fiscal year ending Feb. 28, 2015 (forecast)
Note: Revision to the most recently announced dividend forecast: None

-

25.00

75.00

-

45.00

75.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2015 (March 1, 2014 – February 28, 2015)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

Million yen%

Full year
185,900 21.3
5,100 (11.5)
5,100
Note: Revision to the most recently announced consolidated forecast: None
Reference: EBITDA
EPS before goodwill amortization%(15.4)(Percentages represent year-on-year changes)
Net income
Net income per share
Million yen

700

%

Yen

-

28.83

Fiscal year ending Feb. 28, 2015 (forecast): 14,600 million yen (up 5.3%)
Fiscal year ending Feb. 28, 2015 (forecast):
127.67 yen (down 18.6%)

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Special accounting methods in the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at end of period (including treasury shares)
As of Aug. 31, 2014:

24,400,000 shares

As of Feb. 28, 2014:

24,400,000 shares

As of Feb. 28, 2014:

117,588 shares

2) Number of treasury shares at end of period
As of Aug. 31, 2014:

118,328 shares

3) Average number of shares outstanding during the period (cumulative)
Six months ended Aug. 31, 2014:

24,282,022 shares

Six months ended Aug. 31, 2013:

21,768,938 shares

Note 1: Indication of quarterly review procedure implementation status
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments
and Exchange Act. At the time of disclosure, the review procedures for these quarterly financial statements have not been
completed.
Note 2: 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. Please refer to the section“Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4 regarding preconditions or otherrelated matters for the forecast shown above.

Reference: Summary of Non-consolidated Forecast
Non-consolidated Forecast for the Fiscal Year Ending February 28, 2015 (March 1, 2014 – February 28, 2015)
Net sales
Million yen

Operating income%

Million yen%

Ordinary income
Million yen%(Percentages represent year-on-year changes)
Net income
Net income per share
Million yen%

Full year
3,900 (93.2)
400 (92.4)
700 (87.2)
300
Note: Revision to the most recently announced non-consolidated forecast: None
The Company shifted to a holding company structure through a company split on September 1, 2013.

Yen

12.35

Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Matters Related to Summary Information (Notes)

4(1) Changes in Significant Subsidiaries during the Period

4(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

4(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

4

3. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income7(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

4. Supplementary Information

10(1) Number of Stores

10(2) Sales for Brands and Regions

11(3) Sales for Merchandise Categories

11

- 1 -

Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half (March 1, 2014 to August 31, 2014) of the current fiscal year, the Japanese economy continued torecover at a moderate pace as corporate earnings and the number of jobs improved due to the benefits of theJapanese government’s economic measures and monetary policy as well as for other reasons. However, consumer
spending was weakening due in part to the consumption tax hike in April.
Core brands of Adastria Holdings Co., Ltd. (hereafter “the Company”) and the Company’s Group (hereafter “theGroup”) are in the casual wear category. In this market sector, consumers in Japan have been seeking lower priced
items following the consumption tax hike. In addition, consumers are looking at merchandise much more carefully
before making purchases. This shift in consumer behavior has caused sales to decline across the entire casual wear
category.
Consolidated sales increased sharply by 38.1% year-on-year, benefiting from the consolidation of TRINITY ARTS
INC. in September 2013. Sales of the GLOBAL WORK, LEPSIM LOWRYS FARM and STUDIO CLIP brands all
posted solid sales.
Regarding store network, we opened 136 new stores (including 11 overseas), and closed 33 (including 11 overseas),
resulting in a total network of 1,316 stores (including 81 overseas) at the end of the second quarter of the current
fiscal year.
Operating margin declined 3.6 percentage points from the same period of the previous fiscal year to 2.3%. One
reason was a decline in the gross profit margin that was partly the result of a higher cost of sales ratio caused by the
weaker yen and a slump in overseas business. Amortization of goodwill resulting from the consolidation of
TRINITY ARTS INC. in September 2013 is another reason for the lower operating margin. Furthermore, there wasan increase in selling, general and administrative expenses due to extensive advertising activities using TV
commercials and other advertisements.
There was an extraordinary loss of 263 million yen for impairment losses at stores.
As a result, consolidated net sales in the first half of the current fiscal year increased 38.1% year-on-year to 88,051
million yen, operating income decreased 45.9% to 2,038 million yen, ordinary income decreased 45.4% to 2,174
million yen, and net income decreased 94.8% to 109 million yen.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 0.4% to 6,517 million yen andearnings per share (EPS), before goodwill amortization, fell 52.7% to 54.25 yen. (*)(*) Amortization of goodwill that mainly resulted from the consolidation of TRINITY ARTS INC. causes large
declines in operating income and all subsequent categories of profits from the previous fiscal year. Since
goodwill amortization is not a cash expense, this amortization created a large gap between changes in cash flows
and changes at all levels of profits starting with operating income. Furthermore, comparisons with foreigncompanies are difficult because of differences in accounting standards of individual countries for recording
goodwill amortization. As a result, we are newly announcing EBITDA and EPS before goodwill amortization as
reference financial indicators.
EBITDA
Operating income + Depreciation + Amortization of goodwill (selling, general and administrative expenses)
EPS before goodwill amortization(Net income + Amortization of goodwill (selling, general and administrative expenses, and extraordinary loss))/
Average number of shares outstanding during the period
On September 17, 2014, the Company’s Board of Directors approved a resolution for its wholly owned subsidiary
POINT INC. to absorb another wholly owned subsidiary TRINITY ARTS INC. on March 1, 2015 and then, on thesame day, for the Company to absorb the post-merger POINT INC.
- 2 -Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal YearIn September 2013, the Group conducted a management integration along with a shift to a holding company
structure for the purpose of maximizing corporate value while preserving the corporate culture of each groupcompany. The management integration succeeded at attracting a broader range of customer segments to stores,
mainly by enabling all group companies to offer larger selection of merchandise. However, the integration did notyield sufficient benefits in terms of earnings due to the time needed to build an optimized value chain, productplanning that required greater accuracy and growth in operating expenses. Now that about one year has passed since
the integration, there has been progress involving the integration of operating systems and the mutual understandingof group company corporate cultures. We need to improve merchandise planning, speed up decision making,conduct effective advertising campaigns, optimize store locations, cut back-office expenses, and further streamline
procurement and distribution operations. Consequently, we reached the decision that a further reorganization isneeded to take full advantage of the benefits of the management integration. To accomplish this, the Company will
merge with the two primary business units of the Group, POINT INC. and TRINITY ARTS INC. We believe that
this merger will create an operating framework that will increase corporate value by improving efficiency andspeeding up decision making.
(2) Explanation of Financial Position
1) Balance sheet position
Total assets increased 4,270 million yen from as of February 28, 2014 to 83,111 million yen as of August 31, 2014.
This was mainly due to increases in notes and accounts receivable-trade of 2,290 million yen, lease and guarantee
deposits of 2,135 million yen, while there was a decrease of 1,439 million yen in cash and deposits.
Liabilities increased 4,153 million yen to 38,208 million yen. This was mainly due to an increase in short-term loans
payable of 4,535 million yen.
Net assets increased 117 million yen to 44,903 million yen.
2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of August 31, 2014 amounted to 7,080 million yen, or 1,448
million yen less than as of February 28, 2014.
A summary of cash flows from each activity during the first half of the current fiscal year is as follows:
Cash flows from operating activities
Net cash provided by operating activities totaled 1,624 million yen (compared with 2,756 million yen provided in
the same period of the previous fiscal year). The main factors include income before income taxes and minority
interests of 1,920 million yen, depreciation of 3,377 million yen and income taxes paid of 1,965 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 7,047 million yen (compared with 2,574 million yen used in the same
period of the previous fiscal year). This was mainly due to the payments of 4,375 million yen for the purchase ofproperty, plant and equipment.
Cash flows from financing activities
Net cash provided by financing activities totaled 4,007 million yen (compared with 4,985 million yen used in thesame period of the previous fiscal year). This was mainly due to an increase of 4,617 million yen in short-term loans
payable.

- 3 -Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
On August 20, 2014, we have revised the consolidated forecast for the fiscal year ending on February 28, 2015 based on
the results of operations in the first half of the current fiscal year.
For details, please refer to the announcement regarding revision of forecast (Japanese version only) announced on thesame day.
We expect EBITDA to increase 5.3% year-on-year to 14,600 million yen and EPS before goodwill amortization to fall
18.6% to 127.67 yen for the fiscal year ending on February 28, 2015.
Reference: Explanation of Non-consolidated Forecast and Other Forward-looking Statements
On August 20, 2014, we have revised the non-consolidated forecast for the fiscal year ending on February 28, 2015
based on the results of operations in the first half of the current fiscal year.
For details, please refer to the announcement regarding revision of forecast (Japanese version only) announced on thesame day.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Not applicable.

- 4 -Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Million yen)
Second quarter of FY2/15(As of Aug. 31, 2014)

FY2/14(As of Feb. 28, 2014)
AssetsCurrent assets
Cash and deposits

8,540

7,101

Notes and accounts receivable-trade

6,016

8,306

Inventories

13,914

14,101

Other

3,088

2,771

Allowance for doubtful accounts

(33)

(65)

31,52532,215Store interior equipment, net

8,692

9,428

Other, net

5,402

5,308

Total property, plant and equipment

14,095

14,736

Goodwill

10,606

9,650

Other

1,182

1,254

Total intangible assets

11,78910,904

Lease and guarantee deposits

14,732

16,867

Other

6,909

8,630

Allowance for doubtful accounts

(210)

(243)

Total investments and other assets

21,43025,254

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total non-current assets

47,31550,89678,841

83,111

Notes and accounts payable-trade

14,626

13,457

Short-term loans payable

4,734

9,269

Accounts payable-other

8,056

8,068

Income taxes payable

2,458

2,306

Provision for bonuses

1,594

2,001

Total assets
Liabilities
Current liabilities

Provision for directors' bonuses-

178

Other provision

290

290

Other

713

781

32,47436,355

Total current liabilities
Non-current liabilities
Provision

101

95

Other

1,479

1,757

Total non-current liabilities

1,580

1,853

34,05438,208

Total liabilities- 5 -Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

(Million yen)
Second quarter of FY2/15(As of Aug. 31, 2014)

FY2/14(As of Feb. 28, 2014)
Net assets
Shareholders' equity
Capital stock

2,660

2,660

Capital surplus

6,986

6,986

Retained earnings

33,482

32,985

Treasury shares

(407)

(408)

Total shareholders' equity

42,72242,223

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,720

2,441

Deferred gains or losses on hedges

28

66

Foreign currency translation adjustment

308

167

2,058

2,675

5

5

44,78644,90378,841

83,111

Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets- 6 -Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY2/14(Mar. 1, 2013 – Aug. 31, 2013)(Million yen)First six months of FY2/15(Mar. 1, 2014 – Aug. 31, 2014)

Net sales

63,74988,051

Cost of sales

27,07038,515Gross profit

36,67849,536

Selling, general and administrative expenses

32,91147,498Operating income

3,767

2,038

29

40

Foreign exchange gains

347

Insurance premiums refunded cancellation

73

-

Other

172

147

Total non-operating income

278

235

Interest expenses

18

23

Commitment fee

6-Commission for purchase of treasury shares

20-

Loss on insurance cancellation

6-

Loss on valuation of derivatives

-

69

Other

15

6

Total non-operating expenses

65

99

3,980

2,174

202

-

Non-operating income
Dividend income

Non-operating expenses

Ordinary income
Extraordinary income
Gain on step acquisitions

-

9

202

9

Impairment loss

113

263

Total extraordinary losses

113

263

Income before income taxes and minority interests

4,069

1,920

Income taxes-current

2,216

2,344

Income taxes-deferred

(237)

(533)

Total income taxes

1,978

1,810

Income before minority interests

2,090

109

Net income

2,090

109

Gain on sales of investment securities
Total extraordinary income
Extraordinary losses- 7 -Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY2/14(Mar. 1, 2013 – Aug. 31, 2013)(Million yen)First six months of FY2/15(Mar. 1, 2014 – Aug. 31, 2014)

2,090

109

Valuation difference on available-for-sale securities

723

720

Deferred gains or losses on hedges

1237Foreign currency translation adjustment

179

(140)

Total other comprehensive income

914

617

3,005

726

3,005

726

-

-

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests- 8 -Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY2/14(Mar. 1, 2013 – Aug. 31, 2013)(Million yen)First six months of FY2/15(Mar. 1, 2014 – Aug. 31, 2014)

Income before income taxes and minority interests

4,069

1,920

Depreciation

2,392

3,377

Cash flows from operating activities

Impairment loss

113

263

Amortization of goodwill

404

1,207

Increase (decrease) in allowance for doubtful accounts

(4)

65

Increase (decrease) in provision for bonuses

187

588

Loss (gain) on step acquisitions

(202)

-

Decrease (increase) in notes and accounts receivable - trade(31)(2,315)

(236)

(235)

(1,732)(1,129)

Increase (decrease) in accounts payable - other

(172)

164

Increase (decrease) in accrued consumption taxes

(32)

334

Other, net

261

(670)

Subtotal

5,016

3,570

32

41

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

Interest and dividend income received

(18)

(22)

Income taxes paid

(2,273)(1,965)

Net cash provided by (used in) operating activities

2,756

1,624

(2,478)(4,375)Interest expenses paid

Cash flows from investing activities
Purchase of property, plant and equipment-

24

Purchase of intangible assets

(344)

(562)

Payments for lease and guarantee deposits(655)(2,443)

Proceeds from collection of lease and guarantee deposits

865

307

Other, net

38

1(2,574)(7,047)

Increase (decrease) in short-term loans payable

690

4,617

Proceeds from long-term loans payable

257-

Proceeds from sales of investment securities

Net cash provided by (used in) investing activities
Cash flows from financing activities

(318)

-

Cash dividends paid

(1,520)(608)

Purchase of treasury shares(4,000)(1)

Repayments of long-term loans payable

(93)

-

(4,985)

4,007

83

(32)

Net increase (decrease) in cash and cash equivalents(4,719)(1,448)Cash and cash equivalents at beginning of period

18,338

8,529

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Increasing of cash and cash equivalents for stock exchange
Cash and cash equivalents at end of period

- 9 -

637

-

14,256

7,080

Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
4. Supplementary Information(1) Number of Stores
Number of storesFirst six months of FY2/15
Merged(Note 4)

Increase/decrease

As ofAug. 31,
2014

(3)

-

4

177

(1)

(6)

-

-

159

-

-

-

6

116

1

-

(1)

-

-

82

62

2

-

-

-

2

64

76

4

-

(3)

-

1

77

145

24

1

(2)

-

23

168

As of
Feb. 28,2014

Opened,etc.

Rebranded

GLOBAL WORK

173

7

-

LOWRYS FARM

159

7

LEPSIM LOWRYS FARM

110

6JEANASIS82

RAGEBLUE
HEATHER
OthersStore format / region

Total (POINT INC.)

Closed

807

51

-

(15)

-

36

843

niko and...

100

8

-

(1)

-

7

107

STUDIO CLIP

129

27

-

-

-

27

156

Others

54

32

-

(6)

49

75

129

Total (TRINITY ARTS INC.)

283

67

-

(7)

49

109

392

BABYLONE INC.

42

7

-

-

(49)

(42)

-

Total (Japan)

1,132

125

-

(22)

-

103

1,235

Hong Kong

30

-

-

(5)

-

(5)

25

China

21

8

-

(4)

-

4

25

Taiwan

21

2

-

(2)

-

-

21

Singapore

9

1

-

-

-

1

10

Total (Overseas)

81

11

-

(11)

-

-

81

Total (Group)

1,213

136

-

(33)

-

103

1,316

Notes: 1. The number of stores includes e-commerce websites of other companies and e-commerce websites of the Company.
2. Stores that sell merchandise of two or more brands are categorized as the brand that operates each store.
3. TRINITY ARTS INC. includes figures for its subsidiaries.
4. This table shows the change in the number of stores resulting from the absorption-type merger conducted on April 1,2014 between TRINITY ARTS INC., which is the surviving company, and BABYLONE INC., which was dissolved.

- 10 -

Adastria Holdings Co., Ltd. (2685) Summary of 2Q Financial Results for February 2015 Fiscal Year

(2) Sales for Brands and Regions
Brand / region

First six months of FY2/15
Sales (million yen)
Composition (%)

YoY change (%)

GLOBAL WORK

14,76916.7

9.0

LOWRYS FARM

11,620

13.2

(4.0)

LEPSIM LOWRYS FARM

6,974

7.9

13.6

JEANASIS

4,648

5.3

(10.2)RAGEBLUE

3,927

4.5

(14.1)

HEATHER

3,612

4.1

(11.5)

Others

11,517

13.1

5.3

Total (POINT INC.)

57,07164.8

0.9

niko and...

9,699

11.0

-

STUDIO CLIP

9,829

11.2

-

Others

6,008

6.8

-

25,538

29.0

-

764

0.9

(67.5)

3

0.0-

83,377

94.7

38.0

3,003

3.4

54.0

China

554

0.6

34.8

Taiwan

656

0.8

(4.2)

Singapore

460

0.5

56.2

Total (Overseas)

4,674

5.3

39.9

Total (Group)

88,051

100.0

38.1

Total (TRINITY ARTS INC.) (Note 3)
BABYLONE INC. (Note 3)
OthersTotal (Japan)
Hong Kong

Notes: 1. TRINITY ARTS INC. includes figures for its subsidiaries.
2. No year-on-year change is shown for TRINITY ARTS INC. because this company became a consolidated subsidiary inthe third quarter of the previous fiscal year.
3. An absorption-type merger was conducted on April 1, 2014 between TRINITY ARTS INC., which is the surviving
company, and BABYLONE INC., which was dissolved.

(3) Sales for Merchandise Categories
Category

First six months of FY2/15
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

12,38514.1

5.4

Lady’s apparel (bottoms, tops)

59,16667.2

50.6

Others

16,49918.7

29.7

88,051

100.0

38.1

Total

Note: The others category includes additions to the provision for point card certificates and other items.

This financial report is solely a translation of the Company’s Kessan Tanshin (including attachments) in Japanese, which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who
prefer an English translation.

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