POINT INC. (2685) Summary of 3Q Financial Results for February 2008 Fiscal Year

Summary of Financial Results
for the First Nine Months of the Fiscal Year Ending February 29, 2008
December 14, 2007

Company name: POINT INC.
Stock code:
Representative:
Contact:

Listing: TSE 1st section
2685
URL: http://www.point.co.jp
Toshiaki Ishii, President and Representative Director
Tsuyoshi Matsuda, Corporate Officer, General Manager of Administration Division Tel: +81-3-3243-6011(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended November 30, 2007
(March 1, 2007 – November 30, 2007)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Million yen%

52,14442,85961,650

21.7
22.7
-

Nine months ended Nov. 2007
Nine months ended Nov. 2006
Fiscal year ended Feb. 2007

Million yen

9,971
9,158
12,287

Ordinary income%Million yen

%

8.9
18.0
-

10,0509,171
12,324

9.6
18.3-

Net income per share

Diluted net income per share

YenYenNine months ended Nov. 2007
Nine months ended Nov. 2006
Fiscal year ended Feb. 2007

228.56202.20270.25

Net income
Million yen

%

5,748
5,164
6,877

11.3
17.9
-228.51201.36269.30(2) Consolidated financial position

As of Nov. 30, 2007
As of Nov. 30, 2006
As of Feb. 28, 2007

Total assets

Net assets

Equity ratio

Million yen

Million yen%

36,45331,17934,377(3) Consolidated cash flow position
Cash flows fromoperating activities
Million yen

Nine months ended Nov. 2007
Nine months ended Nov. 2006
Fiscal year ended Feb. 2007

21,044
17,725
19,547

Net assets per share
Yen

57.6
56.8
56.8848.48
703.91775.00Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the period

Million yen

Million yen

Million yen

1,494
1,780
8,584

(5,921)(1,784)(2,140)(4,635)(4,376)(4,307)

7,943
10,491
17,0092. Consolidated Forecast for the Fiscal Year Ending February 29, 2008 (March 1, 2007 – February 29, 2008)
Point Inc. maintains its consolidated forecast for the fiscal year ending February 29, 2008 (released on October 4, 2007).

3. Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope ofconsolidation): None
(2) Adoption of the simplified method for accounting: Yes(3) Changes to accounting methods in the most recent consolidated fiscal year: Yes
Note: Please refer to “Qualitative Information and Financial Statements, 3. Others” on page 2 for further information.

* 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.

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Qualitative Information and Financial Statements
1. Qualitative information regarding consolidated results of operations
In the third quarter of the fiscal year, the three-month period that ended on November 30, 2007, sales of autumn-winterapparel were strong while we had warmer-than-average temperatures and little rain across Japan.
Third quarter sales at existing stores in Japan were 102.5% of the previous year’s level, and above our plan. Net sales
were higher for all brands, due also in part to the contribution from newly opened stores.
We started operating our Internet shopping mall on October 1, 2007, launching six brands: “LOWRYS FARM”,“GLOBAL WORK”, “RAGEBLUE”, “JEANASIS”, “HEATHER” and “HARE”, that have been performing well.
During the third quarter, we opened 48 stores in Japan, including the six e-commerce site stores mentioned above andone store switched in its format. As a result, there were 451 stores in Japan at the end of the third quarter.
For the first three quarters of the fiscal year, consolidated net sales increased 21.7% to 52,144 million yen, gross profit
increased 22.1% to 32,600 million yen, operating income increased 8.9% to 9,971 million yen, ordinary income
increased 9.6% to 10,050 million yen, and net income increased 11.3% to 5,748 million yen.
2. Qualitative information regarding consolidated financial position
Assets totaled 36,453 million yen as of November 30, 2007, 5,274 million yen higher than one year earlier. Net assets
rose 3,318 million yen to 21,044 million yen. As a result, equity ratio increased to 57.6% from 56.8% at the end of theprevious third quarter.
Cash flow position
Net cash provided by operating activities totaled 1,494 million yen. The main factors include income before income
taxes of 9,758 million yen, an increase in accounts receivable of 3,069 million yen, an increase in inventories of 2,881
million yen, an increase in accounts payable of 2,123 million yen, and income taxes paid of 5,764 million yen.
Net cash used in investing activities totaled 5,921 million yen. This was mainly due to payment of 3,994 million yen for
the acquisition of investment securities, and payment of 1,076 million yen for lease deposits mostly for new stores.
Net cash used in financing activities totaled 4,635 million yen. This was mainly due to the redemption of 500 million
yen of corporate bonds, payment of 1,722 million yen for cash dividends, and payment of 2,500 million yen for theacquisition of treasury stock.
As a result, cash and cash equivalents as of November 30, 2007 amounted to 7,943 million yen, or 9,066 million yen
less than as of February 28, 2007.

3. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scopeof consolidation)
No reportable information.
(2) Adoption of the simplified method for accounting
We have adopted the simplified method for booking allowance reserves and income taxes.
(3) Changes to accounting methods in the most recent consolidated fiscal year
In accordance with the revision to the Corporate Tax Law, depreciation of fixed assets acquired on and after April 1,
2007 is calculated based on the revised standard.
The effect of this change on profit and loss is insignificant.

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