Summary of Consolidated Financial Results for the Fiscal Year Ended February 29, 2012
[Japanese GAAP]
Company name:

April 4, 2012
Listing: TSE 1st section
URL: http://www.point.co.jp

POINT INC.

Stock code:
Representative:
Contact:

2685
Michio Fukuda, Representative Director, Chairman & President
Tsuyoshi Matsuda, Director, Managing Corporate Officer,
Tel: +81-3-3243-6011
General Manager of Administration Division
Scheduled date of Annual General Meeting of Shareholders:
May 24, 2012
Scheduled date of payment of dividend:
May 9, 2012
Scheduled date of filing of Annual Securities Report:
May 25, 2012
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for investors)
Note: The original disclosure in Japanese was released on April 4, 2012 at 15:00 (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended February 29, 2012
(March 1, 2011 – February 29, 2012)(1) Consolidated results of operations(Percentages shown for net sales and incomes represent year-on-year changes)
Operating income
Ordinary income
Net income

Net sales
Million yen

Fiscal year ended Feb. 29, 2012
Fiscal year ended Feb. 28, 2011
Note: Comprehensive income%

Million yen%

Million yen%

Million yen

115,058
8.7
12,361(19.4)
12,522(19.2)
105,893
8.4
15,329(9.3)
15,504(9.1)
Fiscal year ended Feb. 29, 2012: 6,758 million yen (down 19.7 %)Fiscal year ended Feb. 28, 2011: 8,416 million yen (- %)

%

6,789
8,400

(19.2)(11.7)Net income per
share

Diluted net
income per share

ROE

Ratio of ordinary
income to total assets

Ratio of operating
income to net sales

Yen

Yen

%

%

%

17.4
23.8
- million yen

20.1
26.3
Feb. 28, 2011:

10.7
14.5
- million yen

Fiscal year ended Feb. 29, 2012
Fiscal year ended Feb. 28, 2011
Reference: Equity in earnings of affiliates

285.71
348.18Feb. 29, 2012:(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of Feb. 29, 2012
As of Feb. 28, 2011
Reference: Shareholders’ equity

62,771
62,089Feb. 29, 2012:

41,19137,33040,969 million yen

65.3
59.8
Feb. 28, 2011:

1,724.17
1,561.71
37,109 million yen(3) Consolidated cash flow position
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the period

Million yen

Million yen

Million yen

Million yen

Fiscal year ended Feb. 29, 2012
Fiscal year ended Feb. 28, 2011

8,119
10,531(6,076)(5,699)(2,850)(4,805)25,30826,151

2. Dividends
Dividend per share

Fiscal year ended Feb. 28, 2011
Fiscal year ended Feb. 29, 2012
Fiscal year ending Feb. 28, 2013
(forecast)

1Q-end2Q-end3Q-end Year-end

Yen

Yen

Yen

Total
dividends

Total

Yen

Yen

Dividend
Dividend on
payout ratio
equity(consolidated) (consolidated)

Million yen

-

50.00
50.00

-

70.00
70.00

120.00120.00

-

50.00

-

70.00

120.00

%

2,879
2,851

%

34.5
42.0

8.2
7.3

38.0

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2013 (March 1, 2012 – February 28, 2013)
Net salesFirst half
Full year

Operating income

Ordinary income

Million yen%

Million yen

Million yen

56,900125,000

8.3
8.6

4,700
13,100

%

0.5
6.0

4,800
13,200%

1.0
5.4(Percentages represent year-on-year changes)
Net income
Net income per share
Million yen

2,700
7,500

%

12.7
10.5

Yen

113.63315.63

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Changes in accounting principles, procedures and presentation methods
1) Changes caused by revision of accounting standards: Yes
2) Other changes: None

(3) Number of outstanding shares (common stock)1) Number of shares outstanding at end of period (including treasury stock)
Feb. 29, 2012:

24,400,000 sharesFeb. 28, 2011:

24,400,000 sharesFeb. 28, 2011:

637,885 shares

2) Number of shares of treasury stock at end of period
Feb. 29, 2012:

637,885 shares

3) Average number of shares outstanding during the period
Fiscal year ended Feb. 29, 2012:

23,762,115 sharesFiscal year ended Feb. 28, 2011:24,126,424 shares

Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 29, 2012
(March 1, 2011 – February 29, 2012)(1) Non-consolidated results of operations
Net sales
Million yen

Fiscal year ended Feb. 29, 2012
Fiscal year ended Feb. 28, 2011%

111,561
103,234

8.1
7.9

Operating income(Percentages represent year-on-year changes)
Ordinary income
Net income

Million yen

Million yen%

11,71014,586(19.7)(11.4)

12,006
14,872

Net income per share

Diluted net income per share

Yen

Yen

Fiscal year ended Feb. 29, 2012
Fiscal year ended Feb. 28, 2011275.81333.09%Million yen(19.3)(11.1)

6,553
8,036

%

(18.4)(13.4)-(2) Non-consolidated financial position

As of Feb. 29, 2012
As of Feb. 28, 2011
Reference: Shareholders’ equity

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

61,032
60,630Feb. 29, 2012:

40,00736,37140,007 million yen

65.6
59.9
Feb. 28, 2011:

1,683.68
1,528.67
36,324 million yen

2. Non-consolidated Forecast for the Fiscal Year Ending February 28, 2013 (March 1, 2012 – February 28, 2013)
Net salesFirst half
Full year

Operating income

Ordinary income
Million yen

Million yen%

Million yen

54,800
119,500

7.5
7.1

4,500
12,500

%

1.6
6.7

4,600
12,700%0.1
5.8(Percentages represent year-on-year changes)
Net income
Net income per share
Million yen

2,600
7,300

%

14.0
11.4

Yen

109.42307.21

Note 1: Indication of audit procedure implementation status
The current financial statements are exempted from audit procedures based on the Financial Instruments and Exchange Law. At
the time of disclosure, the audit procedures for these consolidated 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. These statements are not promises by the Company regarding future performance. Actual results may differ
significantly from these forecasts for a number of factors. Please refer to the section “1. Results of Operations and Outlook (1)Analysis of Operations” on page 1 regarding preconditions or other related matters for the forecast shown above.

POINT INC. (2685) Summary of Consolidated Financial Results for February 2012 Fiscal Year [Japanese GAAP]

1. Results of Operations and Outlook(1) Analysis of Operations
1) Results of operations for the current fiscal year
In the current fiscal year (March 1, 2011 to February 29, 2012), the Great East Japan Earthquake had a temporary
but severe impact on social and economic activity in Japan. But production and exports generally returned topre-earthquake levels and private-sector demand in Japan also recovered as constraints on the supply side caused by
the earthquake were mostly alleviated. However, Japan’s recovery was progressing at only a moderate pace due toslowing global economic growth as the widening European sovereign debt problem affected international financial
markets. Consumer spending remained somewhat lackluster due to considerable uncertainty about the economic
outlook and preference for low-priced items.
In the casual wear market, in which our group operates, consumer demand recovered rather quickly from thedownturn caused by the earthquake. But market conditions remained challenging primarily because of earlier thanusual discount sales and poor weather.
In this environment, domestic existing-store sales were 95.8% of the previous fiscal year. However, consolidated net
sales increased 8.7% due to growth in overseas sales and newly opened domestic stores.
In Japan, two new brands, namely COLLECT POINT and REPIPI ARMARIO, posted strong sales growth and salesof RAGEBLUE and HEATHER, among existing brands, kept growing steadily.
We continued to aggressively open new stores and close unprofitable ones in Japan: we opened 101 new stores, andclosed 39, resulting in a domestic network of 766 stores at the end of the current fiscal year (including 31
e-commerce websites).
Overseas, seven stores were opened and two were closed in Taiwan, five stores were opened and one store wasclosed in Hong Kong, and five stores were opened in China. At the end of the current fiscal year, there were 27
stores in Taiwan, 17 in Hong Kong and 11 in China for a total of 55 overseas stores.
Regarding profits, the gross profit margin was 58.7%, down 1.1 points year-on-year, mainly because of timely
revisions to selling prices responding to changes in market conditions, including an increase in discount sales ofmerchandise in response to the impact of the earthquake and other factors.
Selling, general and administrative (SG&A) expenses increased 14.9% year-on-year mainly because of an increaseof personnel expenses, primarily the opening of many new stores and measures to strengthen the organization tobuild a base for rapid growth during the next medium-term management plan. As a result, the SG&A-to-sales ratiorose 2.6 points year-on-year to 48.0%, and the operating income margin declined 3.8 points to 10.7%.
In addition, we booked an extraordinary gain of 845 million yen, which includes an 82 million yen reversal of
allowance for doubtful accounts, a 580 million yen reversal of provision for bonuses, a 136 million yen reversal ofprovision for directors’ bonuses and a 46 million yen gain on reversal of subscription rights to shares, and an
extraordinary loss of 1,547 million yen, which includes a 515 million yen loss on retirement of non-current assets, a
266 million yen loss on cancellation of store rental contracts, a 323 million yen impairment loss, and a 438 million
yen earthquake-related loss.
As a result, consolidated net sales in the current fiscal year increased 8.7% year-on-year to 115,058 million yen,operating income decreased 19.4% to 12,361 million yen, ordinary income decreased 19.2% to 12,522 million yen,and net income decreased 19.2% to 6,789 million yen.

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POINT INC. (2685) Summary of Consolidated Financial Results for February 2012 Fiscal Year [Japanese GAAP]

2) Outlook for fiscal year ending in February 28, 2013
The operating environment will change drastically as the Japanese market becomes more uncertain due to factors
like the declining population, falling birthrate and aging population as well as the effects of the Great East Japan
Earthquake. The rapid advance of globalization and the expansion of markets in Asian countries are other factors to
be taken into account. To respond to these circumstances, the Point Group started the TOP15 medium-term
management plan in the fiscal year ending on February 28, 2013, taking actions in line with the strategic objectivesof this plan with the goal of further enhancing corporate value.
We are implementing the following initiatives in the fiscal year ending on February 28, 2013.
-Operate larger stores and strengthen lineups of goods other than apparel items for further growth of our core
brands.
- Reexamine and reinforce sales support functions for core brands.
- Open stores in Singapore, adding to existing operations in Taiwan, Hong Kong and China, to increase recognitionof Point’s brands overseas and enlarge the scale of operations outside Japan.
- Upgrade merchandise-planning capabilities of the Production Division and strengthen the collaboration-frameworkwith key suppliers.
For the fiscal year ending on February 28, 2013, we forecast an 8.6% increase in consolidated net sales to 125
billion yen, a 9.6% increase in gross profit to 74 billion yen, a 6.0% increase in operating income to 13.1 billion yen,a 5.4% increase in ordinary income to 13.2 billion yen and a 10.5% increase in net income to 7.5 billion yen. This
forecast assumes that domestic existing-store sales will increase 0.5% and that 92 stores will be opened and 21
stores will be closed in Japan. SG&A expenses are expected to increase for several reasons: substantial expenditures
for strengthening the organization to achieve the strategic objectives of the TOP15 medium-term management plan,higher depreciation cost from a change in the estimation method of residual book value for store interior equipment,
and the amortization of expenses for closing and remodeling stores which were treated as extraordinary losses inprevious fiscal years.
(2) Analysis of Consolidated Financial Condition
1) Balance sheet position
AssetsCurrent assets decreased 347 million yen from as of February 28, 2011 to 38,231 million yen as of February 29,
2012. This was mainly due to a decrease in cash and deposits, in spite of an increase in short-term investment
securities (mainly treasury discounted bills).
Noncurrent assets increased 1,029 million yen to 24,539 million yen. This was mainly due to an increase in store
interior equipment.
As a result, total assets increased 682 million yen to 62,771 million yen.
Liabilities
Current liabilities decreased 2,424 million yen to 21,452 million yen. This was mainly due to decreases in accounts
payable-trade and income taxes payable.
Noncurrent liabilities decreased 754 million yen to 126 million yen. This was mainly due to reversal of provision for
medium-term achievement-linked bonuses.
As a result, total liabilities decreased 3,179 million yen to 21,579 million yen.
Net assets
Net assets increased 3,861 million yen to 41,191 million yen mainly due to an increase in retained earnings.

- 2 -POINT INC. (2685) Summary of Consolidated Financial Results for February 2012 Fiscal Year [Japanese GAAP]

2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of February 29, 2012 amounted to 25,308 million yen, or 842
million yen less than as of February 28, 2011.
A summary of cash flows from each activity is as follows:
Cash flows from operating activities
Net cash provided by operating activities totaled 8,119 million yen (a decrease of 2,412 million yen, compared tothe previous fiscal year). The main factors include income before income taxes of 11,820 million yen and income
taxes paid of 6,257 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 6,076 million yen (an increase of 377 million yen). This was mainly due
to payments of 4,915 million yen for purchase of property, plant and equipment and 1,435 million yen for lease andguarantee deposits, both of which were caused by new store openings.
Cash flows from financing activities
Net cash used in financing activities totaled 2,850 million yen (a decrease of 1,955 million yen). This was due tocash dividends paid.
(3) Basic Policy on Profit Distribution, and Dividend Plans for the Current and Next Fiscal Years
With regard to the distribution of profits, we will make investments in the necessary businesses to develop highly
appealing brands and supply merchandise that can further increase corporate value (shareholder value), which willlead to the satisfaction of both customers and shareholders. For profit distributions to shareholders, we use aconsolidated payout ratio of 30% as the standard for dividends. In addition, we position the repurchase of treasury
stock as one way to return earnings to shareholders. Repurchases will be determined in an appropriate and timely
manner while taking into account changes in our stock price, our financial position and other factors.
Based on this policy, we decided to pay a 70 yen fiscal year-end dividend. Combined with the 50 yen interim
dividend, the annual dividend for the current fiscal year is 120 yen per share, which results in an annual
consolidated payout ratio of 42.0%.
For the next fiscal year ending on February 28, 2013, we plan to pay 120 yen for an annual dividend, the same as thedividend for the current fiscal year.

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