Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending February 29, 2024
(Three Months Ended May 31, 2023)[Japanese GAAP]
June 30, 2023

Company name: Adastria Co., Ltd.
Listing: Tokyo Stock Exchange
Stock code:
2685
URL: https://www.adastria.co.jp
Representative: Osamu Kimura, Representative Director and President
Itsuo Iwakoshi, Senior Executive Officer, General Manager ofContact:
Administration Division, Head of Corporate Planning OfficeTel: +81-3-5466-2060
Scheduled date of filing of Quarterly Report:
July 14, 2023
Scheduled date of payment of dividend:
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 June 30, 2023 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 29, 2024
(March 1, 2023 – May 31, 2023)(1) Consolidated results of operations (cumulative)
Net sales
Million yen(Percentages represent year-on-year changes)
Net income
Ordinary profit
attributable toowners of the parent

Operating profit%

Million yen%

Million yen%

Million yen

Three months ended May 31, 2023
68,478
18.1
6,278
37.2
6,349
28.9
Three months ended May 31, 2022
58,00625.0
4,574 632.1
4,926 412.5
Note: Comprehensive income
Three months ended May 31, 2023: 4,799 million yen (up 20.3%)
Three months ended May 31, 2022: 3,988 million yen (up 846.2%)

%

4,464
3,313

34.7
-

Net income per share Diluted net income per share
Yen

Three months ended May 31, 2023
Three months ended May 31, 2022

Yen

98.41
73.24

-

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of May 31, 2023
119,070
As of Feb. 28, 2023
111,392
Reference: Shareholders’ equity As of May 31, 2023: 62,891 million yen

64,21352.8
60,762
53.3
As of Feb. 28, 2023: 59,407 million yen

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2023
25.00
Fiscal year ending Feb. 29, 2024
Fiscal year ending Feb. 29, 2024 (forecast)
30.00
Note: Revision to the most recently announced dividend forecast: None

-

35.00

60.00

-

35.00

65.00

3. Consolidated Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 – February 29, 2024)
Net sales
Million yen

Operating profit%

Million yen%

Ordinary profit
Million yen

Full year
260,000
7.2
14,00021.6
14,000Note: Revision to the most recently announced consolidated forecast: None

%

16.4

(Percentages represent year-on-year changes)
Net income attributable
Net income
to owners of the parent
per share
Million yen

9,400

%

24.7

Yen

207.27

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -Excluded: -(2) Application of special accounting methods for presenting 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: None
4) Restatements: None
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly
Consolidated Financial Statements, Changes in Accounting Policies” on page 8 for further information.

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of May 31, 2023:
48,800,000 shares
As of Feb. 28, 2023:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of May 31, 2023:
3,371,138 shares

As of Feb. 28, 2023:

3,449,391 shares

3) Average number of shares outstanding during the period
Three months ended May 31, 2023: 45,363,497 shares

Three months ended May 31, 2022: 45,244,312 shares

Note 1: The current quarterly financial report is not subject to quarterly review procedures by certified public accountants or
auditing firms.
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 th e section “1.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 3 regarding preconditions or other related matters for the forecast shown above.

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

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

6(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Changes in Accounting Policies

8

Additional Information

8

Segment Information

8

3. Supplementary Information

10(1) Sales for Brands and Regions

10(2) Sales for Merchandise Categories

10(3) Number of Stores

11

- 1 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated results(Million yen)First three months of FY2/23 First three months of FY2/24
YoY change(Mar. 1, 2022 – May 31, 2022) (Mar. 1, 2023 – May 31, 2023) (Amount)
58,006
68,478
10,471

Net sales

YoY change
(%)
18.1

Operating profit

4,574

6,278

1,703

37.2

Ordinary profit

4,926

6,349

1,422

28.9

Net income attributableto owners of the parent

3,313

4,464

1,150

34.7

Economic and social activity in Japan continued to return to normal during the first quarter (March 1 – May 31,2023) as most pandemic restrictions ended and foreigners are now allowed to visit Japan. As a result, consumer
spending is recovering slowly. The outlook for the economy is still uncertain because of the prolonged Ukraine
conflict, high prices of resources and energy, foreign exchange rate volatility, worldwide inflation and other reasons.
However, the desire of consumers to buy apparel and other fashion products is strong.
The Adastria Group announced a medium-term management plan on April 13, 2022 with the following strategies
for growth and is taking numerous actions to accomplish these goals.
Growth Strategy Ⅰ

Multi-Brand, Multi-Category

Growth Strategy IⅠ Digital Customer Interactions and Services
Growth Strategy ⅠII Glocal
Growth Strategy ⅠV New BusinessGrouping of brands according to roles for improved
profitability and growth
Accelerate growth of our EC site and create a fun EC
community
Develop models in Mainland China and cultivate
Southeast Asia
Establish a food and beverage business and create new
appealConsolidated net sales increased 18.1% year-on-year to 68,478 million yen, operating profit increased 37.2% to
6,278 million yen, ordinary profit increased 28.9% to 6,349 million yen, and net income attributable to owners of
the parent increased 34.7% to 4,464 million yen.
In the Apparel and Sundry Goods-related business, sales in Japan were up 16.9% from one year earlier. Sales
benefited from the increasing demand for clothing for outings, warm weather and strong sales of casual apparel.
Merchandise that reflects current trends, the successful addition of several hit products, TV commercials andpromotional activities such as loyalty points also contributed to sales growth.
As part of our digital strategy, there are many promotional activities that link the Adastria “Dot ST” e-commerce
website with physical stores. Activities include adding merchandise of other companies to enlarge the lineup of
products. As a result, the number of members of “Dot ST” is now 16 million, 0.5 million more than at the end of
the previous fiscal year. E-commerce sales increased 19.6% in part because subsidiary BUZZWIT Co., Ltd., which
operates an e-commerce business, acquired OPEN AND NATURAL Inc., a children’s clothing e-commercecompany that is now a consolidated subsidiary.
In Mainland China, sales increased 32.3% because of the smaller negative effects of the pandemic compared withthe first quarter of the previous fiscal year and sales at stores opened during the previous fiscal year. In Taiwan,
sales increased 28.7% because of higher existing store sales and the continuation of store openings that use themulti-brand strategy. In the United States, sales rose 21.7% because of strong wholesale sales. In Hong Kong, sales
were up 34.0% from the low level of one year earlier caused by the pandemic. As a result, total overseas sales wereup 27.3%. All overseas sales information is based on conversions to yen of sales in local currencies.
In the Other segment (the food and beverage business), the economic climate is challenging because of the highcost of raw materials and utilities, the labor shortage and other adversities. Despite these challen ges, sales increased
due to a slow recovery in the number of customers.

- 2 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal YearThe yen’s depreciation and high cost of raw materials continued to have a negative effect on earnings. There were
measures to control inventories by supplying merchandise at the right times, prices and volumes, limit sales ofmerchandise at discounts, and supply fashions with even more added value. In addition, prices were revised tomaintain the proper balance between prices and the value of merchandise. Profitability improved in the o verseas
business too. Overall, the gross profit margin in the Apparel and Sundry Goods -related business segment wasslightly lower than in the first quarter of the previous business. In the Other segment (the food and beveragebusiness), the gross profit margin declined mainly because of the high cost of raw materials. As a result, the grossprofit margin decreased 0.3 percentage point from one year earlier to 57.1%.
Selling, general and administrative expenses increased mainly because of higher salaries an d other benefits for
employees and increases in personnel expenses, store leasing expenses, cargo transport expenses and other items
along with sales growth. However, due to the increase in sales, the SG&A to sales ratio improved by 1.6 percentage
points from one year earlier to 47.9% and operating profit significantly increased by 37.2%.
Non-operating income includes foreign exchange gains of 61 million yen and there was an extraordinary loss of
35 million yen for the impairment of store assets.
Business segment performance was as follows.
1) Apparel and Sundry Goods-related BusinessAs a result of the activities in this business explained earlier, sales were 65,812 million yen and segment profit was
6,576 million yen.
We opened 40 stores (including 6 overseas) and closed 6 stores (including 1 overseas), resulting in a total of 1,469
stores (including 100 overseas) at the end of the first quarter of the fiscal year.
2) Other (Food and Beverage Business)
Sales were 2,680 million yen and segment loss was 227 million yen.
The number of stores at the end of the first quarter was 74, a result of opening of 1 store and closing of 1 store.
(2) Explanation of Financial Position
Total assets increased 7,678 million yen from as of February 28, 2023 to 119,070 million yen as of May 31, 2023.
There were increases of 438 million yen in cash and deposits, 5,022 million yen in notes and accounts receivabletrade, and 704 million yen in store interior equipment, net.
Liabilities increased 4,228 million yen to 54,857 million yen. There were increases of 2,154 million yen in shortterm borrowings and 2,207 million yen in accounts payable-other.
Net assets increased 3,450 million yen to 64,213 million yen. This was mainly due to increases of 2,866 million
yen in retained earnings and 354 million yen in deferred gain or losses on hedges.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There are no revisions to the consolidated forecast for the current fiscal year that was announced on April 4, 202 3.

- 3 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)First quarter of FY2/24(As of May 31, 2023)

FY2/23(As of Feb. 28, 2023)
AssetsCurrent assets
Cash and deposits

16,38016,818Notes and accounts receivable-trade12,171

17,194Inventories

24,67924,822

Other

2,622

2,827

Allowance for doubtful accounts

(81)

(116)

55,772

61,545Store interior equipment, net

6,000

6,705

Other, net

16,064

16,389Total property, plant and equipment

22,06523,094

Goodwill

1,331

1,274

Other

10,577

10,923

Total intangible assets

11,90812,197

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

Intangible assets

Investments and other assets
Investment securities

1,108

1,130

Leasehold and guarantee deposits

13,545

13,653

Other

7,289

7,745

Allowance for doubtful accounts

(298)

(298)

Total investments and other assets

21,64522,232

55,61957,524111,392

119,070

Notes and accounts payable-trade

13,28012,140Electronically recorded obligations-operating

Total non-current assets
Total assets
Liabilities
Current liabilities

6,990

8,251

Short-term borrowings

197

2,352

Current portion of long-term borrowings

375

371

Accounts payable-other

12,114

14,322

Income taxes payable

2,970

2,799

Provision for bonuses

2,112

1,291

160

106

Provision for point card certificates
Other provisions

779

774

Other

5,008

5,679

Total current liabilities

43,98948,090554

468

Non-current liabilities
Long-term borrowings
Provisions

-

75

Other

6,084

6,223

Total non-current liabilities

6,639

6,766

50,62954,857

Total liabilities- 4 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

(Million yen)First quarter of FY2/24(As of May 31, 2023)

FY2/23(As of Feb. 28, 2023)
Net assets
Shareholders’ equity
Share capital

2,660

2,660

Capital surplus

7,213

7,213

Retained earnings

55,96858,835

Treasury shares(7,286)(7,050)Total shareholders’ equity

58,55561,657

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

95

108

(120)

233

Foreign currency translation adjustment

877

891

Total accumulated other comprehensive income

852

1,233

Non-controlling interests

1,355

1,321

Total net assets

60,76264,213111,392

119,070

Total liabilities and net assets- 5 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)(Million yen)First three months of FY2/23
First three months of FY2/24(Mar. 1, 2022 – May 31, 2022) (Mar. 1, 2023 – May 31, 2023)
Net sales

58,006

68,478

Cost of sales

24,70329,383Gross profit

33,30339,094

Selling, general and administrative expenses

28,72932,816

Operating profit

4,574

6,278

Foreign exchange gains

274

61

Subsidy income

1299

Subsidies for employment adjustment

50

-

Other

65

78

Total non-operating income

520

149

Interest expenses

38

55

Loss on valuation of derivatives

106

-

Other

24

21

Non-operating income

Non-operating expenses

Total non-operating expenses

168

77

4,926

6,349

Impairment loss

3

35

Total extraordinary losses

3

35

Net income before income taxes

4,922

6,314

Income taxes-current

1,701

2,465

Income taxes-deferred

(228)

(569)

Total income taxes

1,472

1,896

Net income

3,450

4,418

136

(46)

3,313

4,464

Ordinary profit
Extraordinary losses

Net income (loss) attributable to non-controlling interests
Net income attributable to owners of the parent- 6 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY2/23(Mar. 1, 2022 – May 31, 2022)(Million yen)First three months of FY2/24(Mar. 1, 2023 – May 31, 2023)

3,450

4,418

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

45

12

372

354

Foreign currency translation adjustment

120

14

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

- 7 -

538

381

3,988

4,799

3,819

4,840

169

(41)

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Accounting Policies
Application of the Implementation Guidance on Accounting Standard for Measurement of Fair Value
The Company has applied the Implementation Guidance on Accounting Standard for Measurement of Fair Value(Accounting Standards Board of Japan (ASBJ) Guidance No. 31, June 17, 2021) from the beginning of the firstquarter of the current fiscal year, and has applied the new accounting policies set forth by the Implementation
Guidance on Accounting Standard for Measurement of Fair Value prospectively in accordance with the transitional
treatment in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Measurement of Fair
Value. There is no effect of the application of this guidance on the quarterly consolidated financial statements.
Additional Information
Accounting treatment and disclosure method when the group tax sharing system is used
Beginning with the first quarter of the current fiscal year, Adastria and some of its consolidated subsidiaries inJapan have changed from the single-entity tax system to the group tax sharing system. Due to this change, theaccounting treatment and disclosure of corporate income taxes, local corporate income taxes and tax effectaccounting are as prescribed in Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing
System (Practical Issues Task Force (PITF) No. 42, August 12, 2021).
Segment Information
I. First three months of FY2/23 (Mar. 1, 2022 – May 31, 2022)

1. Information related to net sales and profit or loss for each reportable segment
Reportablesegment
Apparel andSundry Goodsrelated Business

Other(Note 1)

(Million yen)Amounts shown onquarterly
consolidated
statement of income(Note 3)Adjustment(Note 2)Total

Net sales
External sales
Inter-segment sales and transfers
Total

55,945

2,061

58,006-58,006

0

9

9

(9)

-

55,9452,070

58,016(9)58,006

Segment profit
4,848
78
4,926
4,926
Notes: 1. “Other” represents the businesses which are not included in the reportable segment and mainly consists of food andbeverage business.
2. The amount of adjustment to segment profit is an adjustment to unreali zed profit related to inter-segment
transactions.
3. The segment profit is consistent with the ordinary profit of the Quarterly Consolidated Statement o f Income.
4. The segment profit includes corporate expenses that are allocated to each reportable segment.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.

- 8 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

Significant change in goodwill
Following the acquisition of shares in OPEN AND NATURAL Inc. through the Company’s consolidated subsidiary
BUZZWIT Co., Ltd., OPEN AND NATURAL became a consolidated subsidiary (sub-subsidiary) in the first quarterof FY2/23. As a result, the Apparel and Sundry Goods-related Business recorded goodwill of 670 million yen. The
amount of goodwill is based on the revised method to reflect reviewed allocation of the acquisition cost arisingfrom finalization of the provisional accounting treatment for business combinations.
Significant gain on bargain purchaseNot applicable.
II. First three months of FY2/24 (Mar. 1, 2023 – May 31, 2023)

1. Information related to net sales and profit or loss for each reportable segment
Reportablesegment
Apparel andSundry Goodsrelated Business

Other(Note 1)

(Million yen)Amounts shown onquarterly
consolidated
statement of income(Note 3)Adjustment(Note 2)Total

Net sales
External sales
Inter-segment sales and transfers
Total

65,812

2,666

68,478-68,478

0

13

14

(14)

-

65,812

2,680

68,493(14)

68,478Segment profit (loss)
6,576
(227)
6,349
6,349
Notes: 1. “Other” represents the businesses which are not included in the reportable segment and mainl y consists of Food andBeverage Business.
2. The amount of adjustment to segment profit (loss) is an adjustment to unrealized profit related to inter-segment
transactions.
3. The segment profit (loss) is consistent with the ordinary profit of the Quarterly Consolidated Statement of Income.
4. The segment profit (loss) includes corporate expenses that are allocated to each reportable segment.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
Impairment losses related to non-current assets
Not applicable.
Significant change in goodwill
Not applicable.
Significant gain on bargain purchaseNot applicable.

- 9 -Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

3. Supplementary Information(1) Sales for Brands and Regions
Brand / region

First three months of FY2/24

YoY change (%)

Sales (million yen)

Composition (%)

GLOBAL WORK

13,831

20.2

14.3

niko and ...

8,135

11.9

11.2

LOWRYS FARM

5,778

8.4

6.9

studio CLIP

5,423

7.9

12.9

LEPSIM

3,579

5.2

5.0

JEANASiS

2,989

4.4

23.5

LAKOLE

2,674

3.9

43.3

BAYFLOW

2,670

3.9

7.6

Others

9,447

13.8

16.8

Total (Adastria)

54,53079.6

13.9

BUZZWIT Co., Ltd. (Note 3)

3,212

4.7

86.9

ELEMENT RULE Co., Ltd.

2,888

4.2

21.6

206

0.3

318.0

60,837

88.8

16.9

Hong Kong

822

1.2

34.0

Mainland China

873

1.3

32.3

Taiwan

1,369

2.0

28.7

USA

1,908

2.8

21.7

4,974

7.3

27.3

65,812

96.1

17.6

2,532

3.7

30.5

Other consolidated subsidiaries
Total (Japan)

Total (Overseas)
Total (Apparel and Sundry Goods-related
Business)
Zetton, Inc. (Note 4)
ADASTRIA eat Creations Co., Ltd.

134

0.2

11.3

Total (Food and Beverage Business)

2,666

3.9

29.3

Total (Group)

68,478

100.0

18.1

Notes:

1. The number of stores is categorized by using brand operating divisions and geographic regions.
2. The above figures are sales to external customers and do not include internal sales between consolidated
subsidiaries.
3. Sales of BUZZWIT Co., Ltd. include sales of its consolidated subsidiary OPEN AND NATURAL, Inc.
4. Sales of Zetton, Inc. include sales of its consolidated subsidiary ZETTON, INC (USA Business).

(2) Sales for Merchandise Categories
Category

First three months of FY2/24

YoY change (%)

Sales (million yen)

Composition (%)

Men’s apparel (bottoms, tops)

10,172

14.8

13.4

Lady’s apparel (bottoms, tops)

43,197

63.1

17.7

Others15,10822.1

22.5

68,478

100.0

18.1

Total
Notes:

1. The others category includes additions to the provision for point card certificates and other items.
2. The above figures are sales to external customers and do not include intern al sales between consolidated
subsidiaries.

- 10 -

Adastria Co., Ltd. (2685) Summary of 1Q Financial Results for February 2024 Fiscal Year

(3) Number of Stores
Number of stores
Brand / region

As of Feb. 28,
2023

First three months of FY2/24
As of May 31,
Increase
2023
OpenedChangedClosed/decrease
6
(1)
5
210

GLOBAL WORK

205

niko and ...

141

2

-

(1)

1

142

LOWRYS FARM

129

2

-

(2)

-

129

studio CLIP

174

6

-

(1)

5

179

LEPSIM

114

1

-

-

1

115

JEANASiS

71

-

-

-

-

71

LAKOLE

63

5

-

-

5

68

BAYFLOW

61

1

-

-

1

62

Others

264

6

-

-

6

270

Total (Adastria)

1,222

29

-

(5)

24

1,246

BUZZWIT Co., Ltd. (Note 3)

29

-

-

-

-

29

ELEMENT RULE Co., Ltd.

81

2

-

-

2

83

Other consolidated subsidiaries

8

3

-

-

3

11

1,340

34

-

(5)

29

1,369

Hong Kong

21

1

-

(1)

-

21

Mainland China

13

1

-

-

1

14

Taiwan

52

3

-

-

3

55

USA

9

1

-

-

1

10

Total (Japan)
1

Total (Overseas)
Total (Apparel and Sundry Goodsrelated Business)
Zetton, Inc. (Note 4)

95

6

-

(1)

5

100

1,435

40

-

(6)

34

1,469

71

1

-

(1)

-

71

ADASTRIA eat Creations Co., Ltd.

3

-

-

-

-

3

Total (Food and Beverage Business)

74

1

-

(1)

-

74

Total (Group)

1,509

41

-

(7)

34

1,543

Notes:

1. The number of stores is categorized by using brand operating divisions and geographic regions.
2. The number of stores includes e-commerce websites of other companies and e-commerce websites of Adastria.
3. The number of stores of BUZZWIT Co., Ltd. includes sales of its consolidated subsidiary OPEN AND
NATURAL Inc.
4. The number of stores of Zetton, Inc. includes sales of its consolidated subsidiary ZETTON, INC (USA Business).

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 convenienceof readers who prefer an English translation.

- 11 -