Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2014
(Nine Months Ended November 30, 2013)[Japanese GAAP]
December 27, 2013

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:
January 14, 2014
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Yes
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on December 27, 2013 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending February 28, 2014
(March 1, 2013 – November 30, 2013)(1) Consolidated results of operations (cumulative)(Percentages represent year-on-year changes)

Net sales
Million yen

Nine months ended Nov. 30, 2013
Nine months ended Nov. 30, 2012
Note: Comprehensive income%

Operating income

Ordinary income

Million yen

Million yen%

Net income%

Million yen

105,15123.6
5,369 (26.0)
5,494 (25.9)
85,092
4.2
7,259 (19.7)
7,412 (19.1)
Nine months ended Nov. 30, 2013:
3,896 million yen (down 16.3%)
Nine months ended Nov. 30, 2012:
4,658 million yen (down 12.5%)
Net income per share

Diluted net income per share

Yen

Yen

Nine months ended Nov. 30, 2013
Nine months ended Nov. 30, 2012102.21
182.26

%

2,296
4,222

(45.6)(23.6)

102.19-(2) Consolidated financial position

As of Nov. 30, 2013
As of Feb. 28, 2013
Reference: Shareholders’ equity

Total assets

Net assets

Equity ratio

Million yen

Million yen%

100,295
63,410
As of Nov. 30, 2013: 52,146 million yen

52,15338,598
As of Feb. 28, 2013:

52.0
60.9
38,598 million yen

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2013
50.00
Fiscal year ending Feb. 28, 2014
50.00
Fiscal year ending Feb. 28, 2014 (forecast)
Note: Revision to the most recently announced dividend forecast: None

-

70.00

120.0070.00

120.003. Consolidated Forecast for the Fiscal Year Ending February 28, 2014 (March 1, 2013 – February 28, 2014)
Net sales
Full year

Operating income

Ordinary income
Million yen

Million yen%

Million yen

157,900

29.8

10,100%3.9

10,300Note: Revision to the most recently announced consolidated forecast: None%

3.5

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

4,900

%

(11.0)

Yen

213.75

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: 3 (POINT INC., TRINITY ARTS inc., and NATURAL NINE CO., LTD.)

Excluded: -Note: Please refer to the section “2. Matters Related to Summary Information (Notes), (1) Changes in Significant
Subsidiaries during the Period” on page 3 for further information.

(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: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: Yes
4) Restatements: None

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at end of period (including treasury stock)
As of Nov. 30, 2013:

24,400,000 shares

As of Feb. 28, 2013:

24,400,000 shares

As of Feb. 28, 2013:

2,657,885 shares

2) Number of shares of treasury stock at end of period
As of Nov. 30, 2013:

117,208 shares

3) Average number of shares outstanding during the period (cumulative)
Nine months ended Nov. 30, 2013: 22,469,575 shares

Nine months ended Nov. 30, 2012:

23,169,150 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 Law. 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“Qualitative Information Regarding Consolidated Forecast” on page 3 regarding preconditions or other related matters for theforecast shown above.

Reference: Summary of Non-consolidated Forecast
Non-consolidated Forecast for the Fiscal Year Ending February 28, 2014 (March 1, 2013 – February 28, 2014)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

Million yen%%

Full year
57,500 (50.0)
4,900 (47.0)
5,100 (47.1)
Note: Revision to the most recently announced non-consolidated forecast: None

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

3,100

%

(43.0)

Yen

135.23

Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

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

2(2) Qualitative Information Regarding Consolidated Financial Position

3(3) Qualitative Information Regarding Consolidated Forecast

3

2. Matters Related to Summary Information (Notes)

3(1) Changes in Significant Subsidiaries during the Period

3(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

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

3

3. Quarterly Consolidated Financial Statements

4(1) Quarterly Consolidated Balance Sheets

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6(3) Going Concern Assumption

8(4) Significant Changes in Shareholders’ Equity

8

4. Supplementary Information

9(1) Number of Stores for Formats and Regions

9(2) Sales for Brands and Regions

10(3) Sales for Merchandise Categories

10

- 1 -

Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Results of Operations
In the first nine months of the fiscal year (March 1, 2013 to November 30, 2013), the Japanese economy continued torecover at a moderate pace. Earnings improved, mainly at large companies, capital expenditures rebounded and there
were other improvements due mainly to government economic measures and quantitative easing. Regarding the outlook,demand is expected to increase as consumers rush to make purchases before the upcoming consumption tax hike.
In the casual wear market where our core brands belong to, the operating environment is favorable overall as consumer
spending continues to recover. However, this market has been unstable because of unfavorable weather that included
record-setting autumn heat and typhoons.
In this environment, a share exchange was conducted on September 1, 2013 that made TRINITY ARTS inc. awholly owned subsidiary, with the Company as a solo parent.
At the same time, an absorption-type company split was conducted in which POINT INC. (the new POINT), theCompany’s wholly owned subsidiary, was spun off as a successor company to conduct the operations of theCompany. In addition, the POINT INC. (the new POINT) received rights and obligations for all business activities
other than management administration. By taking these actions, the Group established a holding company structure.
Furthermore, the company name was changed to Adastria Holdings Co., Ltd. from POINT INC. on the same day.
We have two major retail groups. One is POINT INC. (the new POINT), which is involved mainly in sales of natural
fashion style brands. The other is TRINITY ARTS inc., a retailer of lifestyle-proposing brands for apparel,
accessories and other consumer products. NATURAL NINE CO., LTD., which became a consolidated subsidiary inthe second quarter of the current fiscal year, has outstanding capabilities in textile and product designs along with
operations in many Asian countries. The integration of these operations has created a corporate group with a broadcustomer base and the ability to develop highly distinctive merchandise.
At the same time, a holding company structure was established. The new operating framework creates a foundation
for the growth of group companies while preserving the culture of each company. This framework also makes it
possible to maximize synergies involving supply chains, information systems, administrative functions and otheraspects of operations. In addition, the Group is better positioned to use M&A and other measures to strengthen its
brand portfolio and grow outside Japan.
Due to the consolidation of TRINITY ARTS inc., the number of stores now includes the 245 stores (including 3
overseas stores) of this company and its subsidiaries. On the other hand, we continued to aggressively open new
stores and close unprofitable ones: we opened 118 new stores (including 17 overseas), and closed 47 (including 21
overseas), resulting in a total network of 1,215 stores (including 75 overseas) at the end of the third quarter of thecurrent fiscal year.
Consolidated sales increased sharply by 23.6% year-on-year, benefiting from the consolidation of TRINITY ARTS
inc. Sales of the GLOBAL WORK, LEPSIM LOWRYS FARM, niko and..., and STUDIO CLIP brands all posted solid
sales.
Selling, general and administrative expenses were 53.0% of sales, 1.4 percentage points higher than the same periodof the previous fiscal year. One reason was goodwill amortization associated with TRINITY ARTS inc. and
NATURAL NINE CO., LTD. becoming consolidated subsidiaries. Extensive advertising activities by TRINITYARTS inc. also contributed to the higher expense ratio.
There was an extraordinary gain of 202 million yen in association with the step acquisitions for making NATURALNINE CO., LTD. a consolidated subsidiary and an extraordinary loss of 113 million yen for impairment losses atstores.
As a result, consolidated net sales in the first nine months of the current fiscal year increased 23.6% year-on-year to105,151 million yen, operating income decreased 26.0% to 5,369 million yen, ordinary income decreased 25.9% to5,494 million yen, and net income decreased 45.6% to 2,296 million yen.

- 2 -Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

(2) Qualitative Information Regarding Consolidated Financial Position
Total assets increased 36,884 million yen from as of February 28, 2013 to 100,295 million yen as of November 30,
2013. This was mainly due to a decrease in short-term investment securities (commercial papers and Treasury
Discount Bills) of 6,499 million yen in spite of increases in inventories of 10,189 million yen and goodwill of
15,868 million yen.
Liabilities increased 23,329 million yen to 48,142 million yen. This was mainly due to increases in notes andaccounts payable-trade of 6,928 million yen, and short-term loans payable of 10,571 million yen.
Net assets increased 13,554 million yen to 52,153 million yen. This was mainly due to an increase in capital surplusof 4,468 million yen due to the share exchange, and a decrease in treasury stock of 7,783 million yen.
(3) Qualitative Information Regarding Consolidated Forecast
There are no revisions to the consolidated forecast for the current fiscal year that was announced on September 30,
2013.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
On June 4, 2013, the Company acquired 100% of the voting rights of NATURAL NINE HOLDINGS CO., LTD. tomake it a wholly owned subsidiary through a share exchange, with the Company as the solo parent. This company
and its four subsidiaries (NATURAL NINE CO., LTD., CROSS BORDER CO., LTD. and two other companies)
were included in the scope of consolidation in the second quarter of the current fiscal year. On August 31, 2013,
NATURAL NINE CO., LTD., which is the surviving company, absorbed NATURAL NINE HOLDINGS CO., LTD.
and CROSS BORDER CO., LTD., which were dissolved.
On September 1, 2013, the Company acquired 100% of the voting rights of TRINITY ARTS inc. to make it a wholly
owned subsidiary through a share exchange, with the Company as the solo parent. This company and its four
subsidiaries were included in the scope of consolidation in the third quarter of the current fiscal year. At the sametime, an absorption-type company split was conducted in which POINT INC. (the new POINT), the Company’s
wholly owned subsidiary which was established as a preparatory company for the company split on April 4, 2013,
was spun off as a successor company to conduct the operations of the Company. In addition, POINT INC. (the new
POINT) received rights and obligations for all business activities other than management administration. By taking
these actions, the Group established a holding company structure. Furthermore, the company name was changed to
Adastria Holdings Co., Ltd. on the same day.
(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
Changes in accounting policies that are difficult to distinguish from changes in accounting-based estimates
Following tax law revisions, from the first quarter of the current fiscal year, the Company and its certain domestic
consolidated subsidiaries have changed the method of depreciation of property, plant and equipment (excluding
store interior equipment) acquired on or after March 1, 2013 in line with methods prescribed in the revised
Corporation Tax Act.
The effect of this change on operating income, ordinary income, and income before income taxes and minority
interests in the first nine months of the current fiscal year is insignificant.

- 3 -Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)
Third quarter of FY2/14(As of Nov. 30, 2013)

FY2/13(As of Feb. 28, 2013)
AssetsCurrent assets
Cash and deposits

11,84912,673

Notes and accounts receivable-trade

4,829

11,523

Short-term investment securities

6,499

-

Inventories

7,749

17,939

Other

2,296

3,019

Allowance for doubtful accounts

(34)

(80)

33,19045,075Store interior equipment, net

5,933

9,453

Other, net

5,061

5,363

Total property, plant and equipment

10,994

14,816

1,797

17,666

812

1,241

2,609

18,908

Lease and guarantee deposits

11,30614,144

Other

5,513

7,548

Allowance for doubtful accounts

(204)

(197)

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets

16,616

21,49430,22055,22063,410100,295

13,90920,838508

11,079Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable

235

275

Accounts payable-other

5,581

9,121

Income taxes payable

2,378

2,020

Provision for bonuses

1,212

1,384

Provision for directors' bonuses

51

58

Other provision

163

286

Other

191

925

24,231

45,989Total current liabilities- 4 -Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

(Million yen)
Third quarter of FY2/14(As of Nov. 30, 2013)

FY2/13(As of Feb. 28, 2013)
Noncurrent liabilities
Bonds payable3130Long-term loans payable

261

369

Provision

101

101

Other

187

1,652

Total noncurrent liabilities

581

2,152

24,812

48,142

Capital stock

2,660

2,660

Capital surplus

2,517

6,986

Retained earnings

40,826

40,530Treasury stock(8,188)(405)

Total shareholders' equity

37,816

49,771792

2,063

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

7

107

Foreign currency translation adjustment

(17)

203

Total accumulated other comprehensive income

781

2,375

Subscription rights to shares
Total net assets
Total liabilities and net assets

- 5 -

-

6

38,59852,15363,410100,295

Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(For the Nine-month Period)First nine months of FY2/13(Mar. 1, 2012 – Nov. 30, 2012)(Million yen)First nine months of FY2/14(Mar. 1, 2013 – Nov. 30, 2013)

Net sales

85,092

105,151

Cost of sales

33,88844,056Gross profit

51,20361,094

Selling, general and administrative expenses

43,94355,724

Operating income

7,259

5,369

Dividends income

51

60House rent income-

53

Insurance premiums refunded cancellation-73

Non-operating income

Revenue from electric power sales

-

30

Other

126

193

Total non-operating income

178

410

Interest expenses

2

73Commitment fee

108Foreign exchange losses

1101Commission for purchase of treasury stock

7

20

Other

3

82

Total non-operating expenses

25

285

7,412

5,494

18

-

Gain on step acquisitions-

202

Total extraordinary income

18

202

Impairment loss

78

113

Loss on valuation of investment securities

13-

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

Extraordinary loss

91

113

Income before income taxes and minority interests

Total extraordinary losses

7,339

5,583

Income taxes-current

3,674

4,031

Income taxes-deferred

(526)

(744)

Total income taxes

3,148

3,286

Income before minority interests

4,191

2,296

Minority interests in loss

(31)

-

Net income

4,222

2,296

- 6 -

Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

Quarterly Consolidated Statements of Comprehensive Income(For the Nine-month Period)First nine months of FY2/13(Mar. 1, 2012 – Nov. 30, 2012)(Million yen)First nine months of FY2/14(Mar. 1, 2013 – Nov. 30, 2013)

4,191

2,296

417

1,271

4

100

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

45

228

Total other comprehensive income

467

1,600

4,658

3,896

4,684

3,896

(25)

-

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests- 7 -Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

(3) Going Concern Assumption
Not applicable.
(4) Significant Changes in Shareholders’ Equity
Pursuant to the resolution approved at the Board of Directors meeting held on April 4, 2013, the Company conducted ashare exchange on June 4, 2013 to make NATURAL NINE HOLDINGS CO., LTD. a wholly owned subsidiary, with
the Company as the solo parent. As a result, capital surplus increased by 1,501 million yen and treasury stock decreased
by 3,260 million yen in the second quarter of the current fiscal year. Furthermore, treasury stock increased by 4,000
million yen as the Company repurchased its own shares following the resolution approved at the Board of Directors
meeting held on May 28, 2013.
Pursuant to the resolution approved at the Board of Directors meeting held on April 4, 2013, the Company conducted ashare exchange on September 1, 2013 to make TRINITY ARTS inc. a wholly owned subsidiary, with the Company as
the solo parent. As a result, capital surplus increased by 2,958 million yen and treasury stock decreased by 8,499 million
yen in the third quarter of the current fiscal year.
Moreover, treasury stock decreased by 36 million yen in the first nine months of the current fiscal year as the part of thestock acquisition rights, which was issued following the resolution approved at the Board of Directors meeting held on
May 15, 2013, was exercised.
As a result, capital surplus increased by 4,468 million yen over the end of the previous fiscal year to 6,986 million yen,and treasury stock decreased by 7,783 million yen to 405 million yen as of the end of the third quarter of the current
fiscal year.

- 8 -Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

4. Supplementary Information(1) Number of Stores for Formats and Regions
Number of stores
Store format / region

First nine months of FY2/14

As ofFeb. 28,
2013

Increase(Note 5)Opened,etc.

Rebranded

ClosedIncrease/decrease

As ofNov. 30,2013

LOWRYS FARM

149

-

15

-

(5)

10

159

GLOBAL WORK

172

-

9

-

(7)

2

174

JEANASIS

81

-

3

-

(3)

-

81

LEPSIM LOWRYS FARM

111

-

3

-

(2)

1

112

HEATHER

75

-

4

-

(2)

2

77

RAGEBLUE

62

-

4

-

(2)

2

64

Others

135

-

24

-

(4)

20

155

Total (POINT INC.)

785

-

62

-

(25)

37

822

niko and...

-

94

7

-

-

101

101

STUDIO CLIP

-

104

20

-

-

124

124

Others

-

44

6

-

-

50

50

Total (TRINITY ARTS inc.)

-

242

33

-

-

275

275

BABYLONE INC.

38

-

6

-

(1)

5

43

823

242

101

-

(26)

317

1,140

Total (Japan)
Taiwan

31

-

2

-

(13)

(11)

20

Hong Kong

24

3

5

-

(4)

4

28

China

17

-

6

-

(4)

2

19

Singapore

4

-

4

-

-

4

8

Total (Overseas)

76

3

17

-

(21)

(1)

75

Total (Group)

899

245

118

-

(47)

316

1,215

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. POINT INC. includes figures for Adastria Holdings Co., Ltd.
4. TRINITY ARTS inc. includes figures for its subsidiaries.
5. This table shows the increase in the number of stores resulting from the consolidation of TRINITY ARTS inc.

- 9 -Adastria Holdings Co., Ltd. (2685) Summary of 3Q Financial Results for February 2014 Fiscal Year

(2) Sales for Brands and Regions
Brand / region

First nine months of FY2/14
Sales (million yen)
Composition (%)

YoY change (%)

LOWRYS FARM

18,253

17.4

4.2

GLOBAL WORK

19,821

18.8

7.6

JEANASIS

7,709

7.3

(4.5)

LEPSIM LOWRYS FARM

9,784

9.3

8.6

HEATHER

6,005

5.7

(7.5)

RAGEBLUE

6,881

6.5

1.3

Others

17,003

16.2

8.5

Total (POINT INC.)

85,46081.2

4.2

niko and...

4,371

4.2

-

STUDIO CLIP

3,459

3.3

-

Others

1,527

1.5

-

Total (TRINITY ARTS inc.)

9,358

9.0

-

BABYLONE INC.

3,489

3.3

-

Other consolidated subsidiaries

1,473

1.4

-

Total (Japan)

99,781

94.9

21.7

Taiwan

1,028

1.0

14.0

Hong Kong

3,155

3.0

84.6

China

669

0.6

74.4

Singapore

516

0.5

397.5

Total (Overseas)

5,369

5.1

73.3

Total (Group)

105,151

100.0

23.6

Notes: 1. POINT INC. includes figures for Adastria Holdings Co., Ltd.
2. TRINITY ARTS inc. includes figures for its subsidiaries.
3. Other consolidated subsidiaries include figures for NATURAL NINE CO., LTD. and Posic Co., Ltd.

(3) Sales for Merchandise Categories
Category

First nine months of FY2/14
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

17,712

16.8

8.1

Lady’s apparel (bottoms, tops)

65,926

62.7

22.0

Others21,512

20.5

46.6

105,151

100.0

23.6

Total

Note: The others category includes sales of other consolidated subsidiaries, additions to the provision for point card certificatesand 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.

- 10 -