Summary of Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2011
(Three Months Ended May 31, 2010)
June 30, 2010

Company name:

POINT INC.

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

Stock code:
Representative:
Contact:

2685
Michio Fukuda, Representative Director, Chairman & President
Tsuyoshi Matsuda, Director, Managing Corporate Officer, General Manager of Administration Division
Tel: +81-3-3243-6011
Scheduled date of filing of Quarterly Report: July 15, 2010
Scheduled date of payment of dividend:-(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 28, 2011
(March 1, 2010 – May 31, 2010)(1) Consolidated results of operations (cumulative)(Percentages represent year-on-year changes)

Net sales
Three months ended May 31, 2010
Three months ended May 31, 2009

Operating income

Ordinary income

Million yen%

Million yen%

Million yen

23,186
21,685

6.9
-

3,553
3,933

(9.7)
-

3,616
3,979

Net income per share

Diluted net income pershare

YenYenThree months ended May 31, 2010
Three months ended May 31, 200975.84
96.15

Net income%Million yen

(9.1)
-%

1,845
2,339

(21.1)--(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of May 31, 2010
As of Feb. 28, 2010
(Reference) Shareholders’ equity

51,881
55,660
May 31, 2010:

33,851
33,69833,658 million yen

64.9
1,383.31
60.2
1,377.64
Feb. 28, 2010: 33,520 million yen

2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYearend

TotalYenYenYenYenYen

Fiscal year ended Feb. 28, 2010
Fiscal year ending Feb. 28, 2011
Fiscal year ending Feb. 28, 2011 (forecast)(Note) Revision of dividend forecast during the period: None

50.00

-70.00120.0050.00-70.00120.003. 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%

Operating income

Ordinary income

Million yen

Million yen%First half
Full year

48,000
9.7
6,900
2.6
107,500 10.0
17,8005.3(Note) Revision of consolidated forecast during the period: None- 1 -7,000
17,900%3.2
4.9

Net income
Million yen

3,6009,900

Net income per share%(8.6)
4.0

Yen

147.95406.87

POINT INC. (2685) Summary of 1Q Financial Results for February 2011 Fiscal Year

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Application of simplified accounting methods and special accounting methods in the preparation of quarterly
consolidated financial statements: Yes(3) Changes in accounting principles, procedures and presentation methods for preparation of quarterly consolidated
financial statements
1) Changes caused by revision of accounting standards: None
2) Other changes: Yes(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at end of period (including treasury stock)
May 31, 2010:

25,990,720 shares

Feb 28, 2010:

25,990,720 sharesFeb. 28, 2010:

1,658,604 shares

2) Number of treasury stock at end of period
May 31, 2010:

1,658,604 shares

3) Average number of shares outstanding during the period (cumulative)
Three months ended May 31, 2010:

24,332,116 shares

Three months ended May 31, 2009:24,332,125 shares* 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.

Reference: Summary of Non-consolidated Forecasts
Non-consolidated Forecast for the Fiscal Year Ending February 28, 2011 (March 1, 2010 – February 28, 2011)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

Million yen%First half
47,0009.6
6,800
3.56,900
Full year
105,000
9.7
17,6006.8
17,800(Note) Revision of non-consolidated forecast during the period: None- 2 -%2.66.4(Percentages represent year-on-year changes)
Net income
Net income per share
Million yen

3,500
9,800%(11.3)
5.7

Yen

143.84402.76

POINT INC. (2685) Summary of 1Q Financial Results for February 2011 Fiscal Year

Qualitative Information and Financial Statements
1. Qualitative information regarding consolidated results of operations
In the first quarter (March 1, 2010 to May 31, 2010) of the current fiscal year, the Japanese economy showed amoderate recovery as the global economy improved due to rapid economic growth in emerging countries and otherfactors. Consumer spending in Japan rebounded, chiefly for consumer durables, because of the benefits of numerous
government economic stimulus measures.
However, in the casual wear market in which our group operates, consumption remained weak in the context ofongoing harsh employment and income conditions, and due to consumers’ more defensive spending stance and theirgrowing preference for low-priced items.
In this environment, domestic existing-store sales were 93.6% of the same period in the previous fiscal year (3.6points below the full-year target) mainly because of unseasonable weather. However, consolidated net sales
increased 6.9% due to newly opened stores.
The following domestic brands remained at high sales growth rates: HEATHER, LEPSIM LOWRYS FARM,
APART BY LAWRYS and RAGEBLUE.
We continued to aggressively open new stores: we opened 41 new stores, and closed 6, resulting in the domestic
store network of 662 stores at the end of the first quarter (including 28 e-commerce websites).
Overseas, a COLLECT POINT store was opened in Shanghai in the first quarter. As a result, there were 17 stores inTaiwan, 13 in Hong Kong and two in Shanghai for a total of 32 overseas stores at the end of the first quarter.
Regarding profits, the gross profit margin was 63.2%, down 0.7 point year-on-year, mainly because of timely
revisions to selling prices responding to changes in market conditions.
Selling, general and administrative (SG&A) expenses increased 11.9% year-on-year mainly because of aggressive
store development and higher personnel expenses resulting from an increase in wages and other benefits. As a result,
the SG&A-to-sales ratio rose 2.2 points year-on-year to 47.9%, and the operating income margin declined 2.8 points
to 15.3%.
We booked an extraordinary gain of 12 million yen from the reversal of allowance for doubtful accounts. However,
we also booked extraordinary losses of 528 million yen, including a 9 million yen loss on retirement of noncurrent
assets, a 7 million yen loss on cancellation of store rental contracts, a 112 million yen impairment loss and a 393
million yen loss on adjustment for changes of accounting standard for asset retirement obligations.
As a result, consolidated net sales in the first quarter increased 6.9% year-on-year to 23,186 million yen, operating
income decreased 9.7% to 3,553 million yen, ordinary income decreased 9.1% to 3,616 million yen, and net income
decreased 21.1% to 1,845 million yen.
2. Qualitative information regarding consolidated financial position(1) Balance sheet position
Total assets decreased 3,778 million yen from as of February 28, 2010 to 51,881 million yen as of May 31, 2010.
This was mainly due to a decrease in short-term investment securities (commercial papers and treasury bills).
Liabilities decreased 3,931 million yen to 18,030 million yen. This was mainly due to decreases in accounts
payable-trade and income taxes payable.
Net assets rose 153 million yen to 33,851 million yen mainly due to an increase in retained earnings.
(2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of May 31, 2010 amounted to 19,270 million yen, or 6,929
million yen less than as of February 28, 2010.
A summary of cash flows from each activity is as follows.

- 3 -POINT INC. (2685) Summary of 1Q Financial Results for February 2011 Fiscal Year

(Cash flows from operating activities)
Net cash used in operating activities totaled 3,659 million yen. The main factors include income before income
taxes of 3,099 million yen, an increase in accounts receivable of 1,825 million yen, a decrease in accounts payableof 1,707 million yen, and income taxes paid of 3,181 million yen.
(Cash flows from investing activities)
Net cash used in investing activities totaled 1,616 million yen. This was mainly due to the payment of 1,952 million
yen for purchase of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities totaled 1,659 million yen. This was due to cash dividends paid.

3. Qualitative information regarding consolidated forecast
Point Inc. maintains its consolidated forecast for the first half and full year of fiscal year ending February 28, 2011
(released on April 2, 2010).

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