Summary of Consolidated Financial Results for the Fiscal Year Ended February 28, 2021
[Japanese GAAP]
April 5, 2021

Company name: Adastria Co., Ltd.
Stock code:
2685
Representative: Michio Fukuda, Chairman of the Board
Ryo Araya, Vice President,
Contact:
General Manager, Corporate Planning Division
Scheduled date of Annual General Meeting of Shareholders:
Scheduled date of payment of dividend:
Scheduled date of filing of Annual Securities Report:
Preparation of supplementary materials for financial results:
Holding of financial results meeting:

Listing: TSE 1st section
URL: https://www.adastria.co.jp

Tel: +81-3-5466-2060
May 27, 2021
May 11, 2021
May 28, 2021
Yes
Yes (for investors)

Note: The original disclosure in Japanese was released on April 5, 2021 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 28, 2021
(March 1, 2020 – February 28, 2021)(1) Consolidated results of operations(Percentages shown for net sales and incomes represent year-on-year changes)
Net income
Net sales
Operating profit
Ordinary profit
attributable to ownersof the parent

Million yen

Fiscal year ended Feb. 28, 2021
Fiscal year ended Feb. 29, 2020
Note: Comprehensive income%

183,870
222,376

Million yen(17.3)
(0.1)

%

766
12,885

Million yen(94.0)
79.2

2,981
12,843%

Million yen(76.8)
74.8

%

(693)
6,363

63.6

Fiscal year ended Feb. 28, 2021:
Fiscal year ended Feb. 29, 2020:(888) million yen
6,646 million yen

Net income per
share

Diluted net
income per share

ROE

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

Yen

Yen

%

%

%

Fiscal year ended Feb. 2 8, 2021
Fiscal year ended Feb. 29, 2020
(2) Consolidated financial position(14.88)135.08-(-%)(up 89.0%)

(1.3)
11.6

3.1
13.6

0.4
5.8

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of Feb. 28, 2021
95,44950,70153.1
1,122.71
As of Feb. 29, 2020
97,92457,04158.3
1,210.55
Reference: Shareholders’ equity
As of Feb. 28, 2021: 50,701 million yen
As of Feb. 29, 2020: 57,041 million yen(3) Consolidated cash flow position
Cash and cash
Cash flows from
Cash flows from
Cash flows fromoperating activities
investing activities
financing activities equivalents at end of theperiodMillion yen

Fiscal year ended Feb. 28, 2021
Fiscal year ended Feb. 29, 2020

Million yen

11,933
20,850Million yen(7,366)(6,645)

Million yen(6,840)(6,439)24,082
26,377

2. Dividends
Dividend per share
1Q-endYen

Fiscal year ended Feb. 29, 2020
Fiscal year ended Feb. 28, 2021
Fiscal year ending Feb. 28, 2022
(forecast)

2Q-end3Q-end Year-end

Yen

Yen

Total

Dividend
Dividend on
Totalpayout ratio
equitydividends (consolidated) (consolidated)

Yen

Yen

Million yen

-

25.00
15.00

-

25.00
25.00

50.00
40.00

2,382
1,856

-

25.00

-

25.00

50.00

%

%

37.0
-

4.3
3.4

59.4

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2022 (March 1, 2021 – February 28, 2022)
Net sales
Million yen

Full year

219,000

Operating profit%

19.1

Million yen

6,500

%

747.7

Ordinary profit
Million yen

6,500(Percentages represent year-on-year changes)
Net income attributable Net income per
to owners of the parent
share

%

118.0

Million yen

3,800

%

Yen

-

84.14

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -Excluded: -(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(3) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of Feb. 28, 2021:
48,800,000 shares
As of Feb. 29, 2020:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of Feb. 28, 2021:
3,639,505 shares

As of Feb. 29, 2020:

1,679,557 shares

3) Average number of shares outstanding during the period
Fiscal year ended Feb. 28, 2021:
46,598,046 sharesFiscal year ended Feb. 29, 2020:

47,107,114 shares

Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2021
(March 1, 2020 – February 28, 2021)(1) Non-consolidated results of operations
Net sales

Operating profit

Million yen

Fiscal year ended Feb. 28, 2021
Fiscal year ended Feb. 29, 2020

160,940
197,451%(18.5)
1.0

Million yen

%

1,521
12,010(Percentages represent year-on-year changes)
Ordinary profit
Net income
Million yen(87.3)
61.4

2,775
10,757

Net income per share

Diluted net income per share

Yen

Yen

Fiscal year ended Feb. 28, 2021
Fiscal year ended Feb. 29, 2020

(11.32)126.45%(74.2)
47.8

Million yen

(527)
5,956

%

186.5

-

(2) Non-consolidated financial position

As of Feb. 28, 2021
As of Feb. 29, 2020
Reference: Shareholders’ equity

Total assets

Net assets

Equity ratio

Million yen

Million yen%

81,34084,065
As of Feb. 28, 2021:

44,51150,51844,511 million yen

Net assets per share
Yen

54.7
60.1
As of Feb. 29, 2020:

985.63
1,072.11
50,518 million yen

Note 1: The current financial report is not subject to audit 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 assu mptions judged to bereasonable. These statements are not promises by Adastria regarding future performance. Actual results may differ
significantly from these forecasts for a number of factors. Please refer to the section “1. Overview of Results of Operations(4) Outlook” on page 5 regarding preconditions or other related matters for the forecast shown above.

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

4(3) Cash Flows

5(4) Outlook

5(5) Basic Policy on Profit Distribution, and Dividend Plans for the Current and Next Fiscal Years6

2. Basic Approach for the Selection of Accounting Standards

7

3. Consolidated Financial Statements and Notes

8(1) Consolidated Balance Sheet

8(2) Consolidated Statements of Income and Comprehensive Income

10(3) Consolidated Statement of Changes in Equity

12(4) Consolidated Statement of Cash Flows

14(5) Notes to Consolidated Financial Statements

15

Going Concern Assumption

15

Segment Information

15

Per Share Information

15

Subsequent Events

15

- 1 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

1. Overview of Results of Operations(1) Results of Operations
Consolidated results

183,870

YoY change(Amount)(38,505)(Million yen)
YoY change(%)(17.3)

12,885766(12,118)(94.0)

12,843

2,981(9,861)(76.8)

6,363

(693)

(7,056)-

FY2/20(Mar. 1, 2019 – Feb. 29, 2020)

FY2/21(Mar. 1, 2020 – Feb. 28, 2021)

Net sales

222,376

Operating profit
Ordinary profit
Net income attributableto owners of the parent

Consolidated net sales decreased 17.3% year-on-year to 183,870 million yen, operating profit decreased 94.0% to
766 million yen, ordinary profit decreased 76.8% to 2,981 million yen, and net loss attributable to owners of theparent was 693 million yen (net income of 6,363 million yen in the previous fiscal year).
Sales in Japan were 17.4% lower than one year earlier as the number of customers visiting our stores decreased
sharply because people stayed home due to the COVID-19 pandemic and retail facilities closed or shortened
operating hours. All of our physical stores in Japan were closed for about two weeks from late April.
Subsequently, stores reopened in stages in every region of Japan after the emergency declaration was lifted.
Although the effect of the downturn in demand related to going out conti nued, sales at physical stores in Japan
started to improve gradually. Demand picked up significantly in the third quarter. However, concerns aboutanother wave of infections started to increase in late November and a second state of emergency was declared
early in 2021. This caused the number of customers visiting our stores to decrease again. Although there weresigns of a small recovery late in February, consumer spending remained uncertain throughout the fiscal year.
E-commerce sales in Japan were 23.4% higher than in the previous fiscal year. The big increase was attributable
to initiatives to strengthen measures of attracting customers on “.st” e-commerce site as people stayed home forsafety. A strong performance of BUZZWIT Co., Ltd., which sells merchandise exclusively online, also
contributed to the growth of e-commerce sales.
In other countries, sales were down in Hong Kong, South Korea and the United States because of COVID -19.
Sales in Taiwan, where the impact of COVID-19 was relatively small, were up. Sales also increased in China
because of strong sales at the niko and … Shanghai flagship store.
We opened 89 stores (including 8 overseas) and closed 81 stores (including 17 overseas), resulting in a total of
1,400 stores (including 68 overseas) at the end of the fiscal year.
In this challenging environment, we kept discount sales in check by providing merchandize “in a timely manner,at appropriate prices and in suitable volumes.” However, the gross profit margin decreased 1.0 percentage pointfrom one year earlier to 54.5% due to promotions to sell inventories during a challenging fiscal year that
included two declarations of a state of emergency.
Selling, general and administrative expenses were 11,138 million yen lower than one year earlier. One reason
was a decrease in personnel expenses and store rents because of store closings and reduced operating hours. Thisdecrease was also attributable to the reduction of other expenses, such as holding down promotional expenses,
reducing credit card fees, limiting business trips and canceling events. However, due to the significant decreasein sales, the ratio of SG&A expenses to sales increased 4.3 percentage points to 54.0%, resulting in a 5.4
percentage point decrease in the operating margin to 0.4%. There was non-operating income of 1,767 million yen
due to the receipt of employment adjustment subsidies associated with temporary store closings caused by
COVID-19.
There were extraordinary losses of 1,322 million yen for the impairment of store and other assets, 874 million
yen for an addition to the allowance for doubtful accounts associated with loans receivable in preparation formaking equity investments in partner companies for growth in the ASEAN region, and 137 million yen for a loss
resulting from the liquidation of Adastria Korea Co., Ltd., our subsidiary in South Korea.
- 2 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

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

FY2/21
Sales (million yen)

YoY change (%)

Composition (%)

GLOBAL WORK

33,84518.4(18.9)

niko and ...

26,092

14.2(18.5)LOWRYS FARM

19,436

10.6(18.0)STUDIO CLIP

18,55810.1(17.3)LEPSIM

11,132

6.1(22.3)JEANASIS

9,932

5.4

(16.7)BAYFLOW

8,446

4.6

(15.0)RAGEBLUE

5,431

3.0

(29.6)

Others (Note 3)

25,26513.7(17.8)

158,14286.1(18.7)BUZZWIT Co., Ltd.

6,374

3.4

29.9

ELEMENT RULE Co., Ltd. (Note 3)

8,322

4.5

(17.7)

Total (Adastria)

322

0.2

89.1

173,161

94.2(17.4)

Hong Kong

2,589

1.4

(24.5)

China

1,254

0.7

165.0

Taiwan

2,743

1.5

8.3

680

0.3

(41.1)

Other consolidated subsidiaries
Total (Japan)

South Korea

3,440

1.9

(32.2)

Total (Overseas)

10,7095.8(15.5)

Total (Group)

183,870

100.0(17.3)

USA

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. On March 1, 2020, Adastria conducted an absorption-type split where the PAS TIERRA business unit of Adastria
was divested and then transferred to consolidated subsidiary ELEMENT RULE Co., Ltd. As a result, the sales ofthis brand, which was included in “others” for Adastria in prior years, are included in the sales of ELEMENTRULE beginning with the first quarter of the fiscal year ended in February 2021.

(2) Sales for Merchandise Categories
Category

FY2/21
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

26,57514.4(19.9)

Lady’s apparel (bottoms, tops)

116,543

63.4(20.5)

Others40,751

22.2

(4.1)

183,870

100.0(17.3)

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 internal sales between consolidated
subsidiaries.

- 3 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

(3) Number of Stores
Number of stores
FY2/21
Brand / region

As of Feb.
29, 2020

As ofFeb. 28,2021

GLOBAL WORK

Absorptiontype split(Note 3)
210
-

3

(1)

(3)

(1)

209

niko and ...

144

-

3

-

(3)

-

144

LOWRYS FARM

136

-

-

-

(2)

(2)

134

STUDIO CLIP

183

-

4

-

(4)

-

183

LEPSIM

128

-

-

-

(6)

(6)

122

JEANASIS

73

-

3

-

(4)

(1)

72

BAYFLOW

54

-

5

-

(3)

2

56

RAGEBLUE

54

-

1

-

(6)

(5)

49

Others

247

(3)

36

1

(22)

12

259

Total (Adastria)

OpenedIncrease/decrease

ClosedChanged

1,229

(3)

55

-

(53)

(1)

1,228

BUZZWIT Co., Ltd.

7

-

7

-

-

7

14

ELEMENT RULE Co., Ltd.

77

3

17

-

(10)

10

87

Other consolidated subsidiaries

2

-

2

-

(1)

1

3

1,315

-

81

-

(64)

17

1,332

16

-

-

-

(2)

(2)

14

China

1

-

2

-

-

2

3

Taiwan

37

-

5

-

(1)

4

41

South Korea

13

-

-

-

(13)

(13)

-

USA

Total (Japan)
Hong Kong

Notes:

10

-

1

-

(1)

-

10

Total (Overseas)

77

-

8

-

(17)

(9)

68

Total (Group)

1,392

-

89

-

(81)

8

1,400

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 figures in “Absorption-type split” show the change in the number of stores resulting from theabsorption-type split conducted on March 1, 2020, where the PAS TIERRA business unit of Adastria was divested
and then transferred to consolidated subsidiary ELEMENT RULE Co., Ltd.

(2) Financial Position
AssetsCurrent assets decreased 1,665 million yen from as of February 29, 2020 to 51,569 million yen as of February 28,
2021. This was mainly due to decreases of 2,282 million yen in cash and deposits and 203 million yen in notes
and accounts receivable-trade, while there was an increase of 709 million yen in inventories.
Non-current assets decreased 809 million yen to 43,880 million yen. This was mainly due to decreases of 246
million yen in buildings and structures, net, 1,126 million yen in store interior equipment, net, and 797 million
yen in leasehold and guarantee deposits, while there were increases of 699 million yen in other, net underproperty, plant and equipment, partly because of right-of-use assets, and 1,379 million yen in other (software,etc.) under intangible assets.
Liabilities
Current liabilities increased 3,592 million yen to 41,055 million yen. This was mainly due to increases of 1,648
million yen in notes and accounts payable-trade, 2,540 million yen in accounts payable-other and 1,020 million
yen in income taxes payable, while there was a decrease of 1,659 million yen in electronically recorded
obligations-operating.
Non-current liabilities increased 271 million yen to 3,692 million yen. This was mainly due to an increase of 843- 4 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Yearmillion yen in lease obligations, while there was a decrease of 453 million yen in other under non-current
liabilities.
Net assets
Net assets decreased 6,339 million yen to 50,701 million yen. This was mainly due to an increase of 3,544
million yen in treasury shares (decrease in total assets) and a decrease of 2,599 million yen in retained earnings .
(3) Cash flows
Cash and cash equivalents (hereinafter “net cash”) as of February 28, 2021 amounted to 2 4,082 million yen, or
2,294 million yen less than as of February 29, 2020.
A summary of cash flows from each activity during the current fiscal year is as follows:
Cash flows from operating activities
Net cash provided by operating activities totaled 11,933 million yen (a decrease of 8,916 million yen, comparedwith the previous fiscal year). This was mainly due to depreciation of 7,156 million yen, impairment loss of
1,322 million yen and an increase in accrued consumption taxes of 2,977 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 7,366 million yen (an increase of 720 million yen). This was mainly
due to the payments of 3,807 million yen for the purchase of property, plant and equipment and 2,695 million yen
for the purchase of intangible assets.
Cash flows from financing activities
Net cash used in financing activities totaled 6,840 million yen (an increase of 400 m illion yen). This was mainly
due to dividends paid of 1,907 million yen, purchase of treasury shares of 3,677 million yen and repayments oflease obligations of 1,255 million yen.
Reference: Cash flow indicators
FY2/19FY2/20FY2/21

Shareholders’ equity ratio (%)

58.0

58.3

53.1

Shareholders’ equity ratio based on market prices (%)

100.2

84.2

94.4

0.3

0.2

0.3

Interest-bearing debt to cash flow ratio

Interest coverage ratio (times)
195.8
200.8
74.6
Notes: 1. Shareholders’ equity ratio: Shareholders’ equity / Total assets
2. Shareholders’ equity ratio based on market prices: Market capitalization / Total assets
3. Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
4. Interest coverage ratio: Operating cash flows / Interest payments* Market capitalization is calculated by multiplying the closing share price at the end of the period by the number ofshares outstanding at the end of the period, excluding treasury shares.
* Operating cash flows are calculated using the figures for operating cash flows in the consolidated statement of cash
flows. Interest-bearing debt includes all liabilities on the consolidated balance sheet that incur interest. Interest
payments are calculated using the figures for interest expenses paid in the consolidated statement of cash flows.

(4) Outlook
Although COVID-19 is having a severe impact on the global economy, there are hopes for a slow recovery
because of progress with vaccinations and monetary easing and other measures to support the e conomy bycountries worldwide. In Japan, operating hours of stores and other businesses are reduced and the number ofcustomers at stores remains low. As a result, an upturn in Japan’s sluggish consumer demand is unlikely tohappen soon. There may be a recovery to some degree in consumer spending in the second half of 2021 as thenumber of COVID-19 cases declines and economic activity begins to return to normal. However, even if thisrecovery happens, lifestyle changes caused by this crisis such as telework ing and different consumer preferences- 5 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Yearwill not be reversed. We will conduct business operations cautiously based on the assumption that consumer
behavior, including spending by foreign tourists in Japan, will not return to the pre -crisis characteristics. At thesame time, some shifts in consumer preferences are likely to be beneficial for Adastria, such as increasing
demand for our household merchandise as people spend more time at home and the increasing use of casual
apparel for business activities. We are moving quickly to target new categories of demand for products that canhelp improve the quality of our customers’ lives.
From a medium to long-term perspective, there are concerns about the structural shrinking of markets in Japancaused by the country’s declining and aging population and shifts in the employment and income environment.
As a result, we believe that our business climate will remain challenging.
In this difficult environment, we are determined to continue growing while using our business activities tocontribute to solving issues in society and the apparel industry in order to help create a sustainable society. To
accomplish these goals, we are positioning the fiscal year ending in February 2022 as a period for investments
for the next phase of changes.
We are developing brands for older customer segments because of the ongoing changes in Japan’s population. We
also plan to strengthen brands that are a source of ideas for new lifestyles and that have a high percentage ofsales from merchandise other than apparel. As we target new customer segments, we plan to broaden our productlineup to cover more sectors and make our merchandise even more competitive and appealing. Another goal isusing digital technologies, such as for omni-channel operations linking physical stores and e-commerce, forincreasing customer points of contact and providing services that enhance customer convenience. One activity toaccomplish these goals is measures for more growth of our “.st” e-commerce site accompanied by a stronger
strategy for promoting the use of this website.
In our overseas operations, we plan to create and implement regional growth strategies. The first goal isimproving the profitability of operations in Asia and advance to the stage where these ope rations grow steadily.
In China, our goal is to increase the speed of business activities by strengthening the functions of our subsidiaryin China. We are building an integrated framework for the management of production, logistics and sales
activities in China. In Japan, we are aiming for more progress regarding the supply of merchandise in a timely
manner, at appropriate prices and in suitable volumes. An office to oversee preparations to start operations inSoutheast Asia has been established.
We will also continue to seek new opportunities in growing market sectors outside the apparel category in orderto reflect the diversification of our customers’ life styles and changes in consumption patterns. One goal isexpanding the lineup of new businesses, including the restaurant business, and making these businesses
profitable. We also plan to establish alliances with start-up companies that have innovative technologies. The
objective is to provide new types of value linked to experiences that reflect a broad array of components of ourcustomers’ lives. All these activities are aimed at building a business model that helps customers lead enjoyableand fulfilling lives.
(5) Basic Policy on Profit Distribution, and Dividend Plans for the Current and Next Fiscal Years
Our policy for the distribution of earnings is to meet the expectations of our customers and shareholders bymaking investments needed to create highly appealing brands, increase the use of digital technologies, grow inJapan and other countries, and achieve other goals. The overall objective of these investments is more growth of
our corporate value (shareholder value). For the distribution of earnings to shareholders, we use a consolidated
payout ratio before goodwill amortization of 30% as the basic policy. In addition, we position the repurchase ofstock 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 o ther factors.
We plan to pay a year-end dividend of 25 yen per share, as stated in the forecast announced on July 16, 2020,
which will result in a dividend per share of 40 yen for the fiscal year that ended in February 2021. This dividend
reflects our policy of maintaining a stable dividend even during the severe impact of COVID -19 on our
performance as well as other considerations.
For the fiscal year ending in February 2022, we plan to pay an annual dividend of 50 yen.

- 6 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

2. Basic Approach for the Selection of Accounting Standards
Adastria prepares its consolidated financial statements based on the generally accepted accounting principles inJapan to permit comparisons with prior years and with the financial data of other companies.
We will take suitable actions with regard to the application of International Financial Reporting Standards (IFRS)
by taking into account associated factors in Japan and other countries.

- 7 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Million yen)
FY2/21(As of Feb. 28, 2021)

FY2/20(As of Feb. 29, 2020)
AssetsCurrent assets
Cash and deposits

26,462

24,179Notes and accounts receivable-trade

9,954

9,751

Inventories

15,00815,718

Other

1,877

1,995

Allowance for doubtful accounts

(68)

(74)

53,23451,569

6,001

6,010

Accumulated depreciation(2,063)(2,318)

Buildings and structures, net

3,937

3,691

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

Store interior equipment

32,66832,901

Accumulated depreciation(27,318)(28,678)

Store interior equipment, net

5,349

4,222

2,366

2,366

53

38

Land
Construction in progress
Other

5,828

7,042

(2,271)(2,785)

3,557

4,257

15,265

14,577

478

113

Other

5,799

7,179

Total intangible assets

6,278

7,292

242

260

2

1,065

Leasehold and guarantee deposits

15,95915,162

Deferred tax assets

6,960

6,463

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets
Investment securities
Long-term loans receivable

Other

249

243

Allowance for doubtful accounts(268)(1,184)

Total investments and other assets

23,14622,01044,68943,88097,924

95,449Total non-current assets
Total assets- 8 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

(Million yen)
FY2/21(As of Feb. 28, 2021)

FY2/20(As of Feb. 29, 2020)
Liabilities
Current liabilities
Notes and accounts payable-trade

7,900

9,548

Electronically recorded obligations-operating

9,020

7,360

Lease obligations

1,178

672

Accounts payable-other

11,50014,040

Income taxes payable

3,130

4,151

Provision for bonuses

2,188

2,170

Provision for point card certificates

1,937

1,285

279

420

Other provisions
Other
Total current liabilities

327

1,405

37,462

41,055

Non-current liabilities
Lease obligations

2,123

2,966

Deferred tax liabilities

78-

Provisions

396

356

Other

823

370

3,421

3,692

40,88344,747

2,660

2,660

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

7,213

7,213

Retained earnings

51,07948,479Treasury shares(4,372)(7,917)

Total shareholders’ equity

56,58050,435

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

(0)

0

6

34

Foreign currency translation adjustment

454

231

Total accumulated other comprehensive income

461

266

57,04150,701

97,924

95,449Total net assets
Total liabilities and net assets- 9 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY2/20(Mar. 1, 2019 – Feb. 29, 2020)(Million yen)
FY2/21(Mar. 1, 2020 – Feb. 28, 2021)

222,376

183,870

Net sales
Cost of sales

98,99383,744Gross profit

123,383

100,125

Advertising expenses

8,104

7,163

Provision of allowance for doubtful accounts

(22)

47

Selling, general and administrative expenses

Remuneration for directors (and other officers)

394

457

Salaries and bonuses

31,38829,195

Provision for bonuses

2,151

2,152

Welfare expenses

5,197

4,956

Rent expenses on land and buildings

34,33429,220

Lease payments

451

482

Depreciation

7,304

6,841

Amortization of goodwill

167

157

Other

21,025

18,683

Total selling, general and administrative expenses

110,497

99,35812,885766Interest income

66

69

Dividend income232

Foreign exchange gains-

75

Gain on valuation of derivatives

59-

Income from contribution to facilities

50

60

Revenue from electric power sales

37

36

Subsidies for employment adjustment

-

1,767

Operating profit
Non-operating income

Other

324

551

Total non-operating income

561

2,562

Interest expenses

140

160

Foreign exchange losses

Non-operating expenses
376-

Loss on valuation of derivatives

-

89

Other

86

97

Total non-operating expenses

602

346

12,843

2,981

2,815

1,322

Provision of allowance for doubtful accounts-

874

Loss on liquidation of business-

137

Loss on disaster

28-

Loss on sales of investment securities

75-

Ordinary profit
Extraordinary losses
Impairment loss

Total extraordinary losses

2,920

2,335

Net income before income taxes

9,923

646

Income taxes-current

4,250

962

Income taxes-deferred

(690)

377

Total income taxes

3,560

1,340

Net income (loss)

6,363

(693)

Net income (loss) attributable to owners of the parent

6,363

(693)

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Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

Consolidated Statement of Comprehensive Income
FY2/20(Mar. 1, 2019 – Feb. 29, 2020)(Million yen)
FY2/21(Mar. 1, 2020 – Feb. 28, 2021)

6,363

(693)

7

0

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

15

27

Foreign currency translation adjustment

261

(222)

Total other comprehensive income

283

(195)

6,646

(888)

6,646

(888)

-

-

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable tonon-controlling interests- 11 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

(3) Consolidated Statement of Changes in Equity
FY2/20 (Mar. 1, 2019 – Feb. 29, 2020)

Balance at beginning of period
Cumulative effects of changes
in accounting policies
Restated balance(Million yen)
Shareholders’ equity
Retained
Total shareholders’Share capital
Capital surplus
Treasury sharesearnings
equity2,660
7,227
47,469(4,575)52,781
(134)
2,660

7,227

47,335(134)(4,575)52,647

Changes during period
Dividends of surplus
Net income attributable toowners of the parent
Purchase of treasury shares
Disposal of treasury shares
Purchase of treasury shares bystock ownership plan trust
Disposal of treasury shares bystock ownership plan trust
Transfer of treasury shares tostock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period(2,619)(2,619)

6,363

6,363

(14)

(3)

(3)

0

0

(131)

(131)

192

192

145

131
-

-

(14)

3,743

202

3,932

2,660

7,213

51,079(4,372)56,580(Million yen)

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period
Cumulative effects of changes
in accounting policies
Restated balance

(7)

Total
Deferred gains Foreign currency accumulated
or losses ontranslation
otherhedgesadjustment
comprehensive
income(8)
193
177

Total net assets

52,959

-

(134)

177

52,825

Dividends of surplus
Net income attributable toowners of the parent
Purchase of treasury shares-(2,619)

-

6,363

-

(3)

Disposal of treasury shares
Purchase of treasury shares bystock ownership plan trust
Disposal of treasury shares bystock ownership plan trust
Transfer of treasury shares tostock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period

-

0

-

(131)

-

192

-

131

(7)

(8)

193

Changes during period

Balance at end of period

7

15

261

283

283

7

15

261

283

4,216

(0)

6

454

461

57,041- 12 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

FY2/21 (Mar. 1, 2020 – Feb. 28, 2021)

Balance at beginning of period(Million yen)
Shareholders’ equity
Retained
Total shareholders’Share capital
Capital surplus
Treasury sharesearnings
equity2,660
7,213
51,079(4,372)56,580Changes during period
Dividends of surplus
Net loss attributable to ownersof the parent
Purchase of treasury shares
Disposal of treasury shares
Disposal of treasury shares bystock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period(1,906)(1,906)

(693)

(693)
(3,673)(3,673)

0

0

128

128
-

-

-

(2,599)(3,544)(6,144)

2,660

7,213

48,479(7,917)50,435(Million yen)

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

(0)

Total
Deferred gains Foreign currency accumulated
or losses ontranslation
otherhedgesadjustment
comprehensive
income6454
461

Total net assets

57,041

Changes during period
Dividends of surplus
Net loss attributable to ownersof the parent
Purchase of treasury shares-(1,906)

-

(693)

-

(3,673)

Disposal of treasury shares
Disposal of treasury shares bystock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period

-

0

-

128

Balance at end of period

0

27

(222)

(195)

(195)

0

27

(222)

(195)

(6,339)

0

34

231

266

50,701- 13 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

(4) Consolidated Statement of Cash Flows
FY2/20(Mar. 1, 2019 – Feb. 29, 2020)(Million yen)
FY2/21(Mar. 1, 2020 – Feb. 28, 2021)

Net income before income taxes

9,923

646

Depreciation

7,599

7,156

Impairment loss

2,815

1,322

Loss on liquidation of business-

137

Loss on disaster

28-

Cash flows from operating activities

Amortization of goodwill

167

157

Interest and dividend income

(89)

(71)

Interest expenses

140

160

Increase (decrease) in allowance for doubtful accounts

(22)

921

Increase (decrease) in provision for bonuses

(317)

(17)

852

(651)

Increase (decrease) in provision for point card certificates
Loss (gain) on sales of investment securities

75-

Decrease (increase) in trade receivables

(164)

190

Decrease (increase) in inventories

2,546

(771)

Increase (decrease) in trade payables(1,973)

3

302

(175)

Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes

1,374

2,977

Other, net

545

644

Subtotal

23,804

12,630

31

13

(103)

(160)

Interest and dividends received
Interest paid
Income taxes paid

(2,880)(550)

Net cash provided by (used in) operating activities

20,85011,933Purchase of property, plant and equipment(4,070)(3,807)Purchase of intangible assets

Cash flows from investing activities(3,284)(2,695)Purchase of investment securities

(1)

(21)

Proceeds from sales of investment securities

498-

Long-term loan advances-(1,091)

Payments of leasehold and guarantee deposits

(801)

(663)

Proceeds from refund of leasehold and guarantee deposits

1,178

920

Other, net

(164)

(7)

(6,645)(7,366)

Increase (decrease) in short-term borrowings(2,505)-

Dividends paid

(2,620)(1,907)(7)(3,677)(1,309)(1,255)3

0(6,439)(6,840)Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(35)

(22)

Net increase (decrease) in cash and cash equivalents

7,729(2,294)

Cash and cash equivalents at beginning of period

18,647

26,377

Cash and cash equivalents at end of period

26,37724,082- 14 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2021 Fiscal Year

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Segment Information
The Adastria Group has only a single business segment, which is the planning and sales of clothing and related
merchandise. There is no others segment because the levels of sales and earnings of other activities are
insignificant.
Per Share Information

Net assets per share

FY2/20(Mar. 1, 2019 – Feb. 29, 2020)
1,210.55(Yen)
FY2/21(Mar. 1, 2020 – Feb. 28, 2021)
1,122.71

Net income (loss) per share
135.08(14.88)Notes: 1. Diluted net income per share is not presented since Adastria has no outstanding dilutive securities.
2. The Adastria stock held by the trust account recorded as treasury shares under shareholders’ equity is included intreasury shares deducted from the number of shares that is used to calculate the average number of shares
outstanding during the period for the determination of net income (loss) per share, and is included in treasury sharesthat is deducted from the number of shares outstanding at the end of the period for the determination of net assets per
share.
For the determination of net income (loss) per share, the average numbers of treasury shares outstanding that werededucted were 520,000 for FY2/20 and 501,000 for FY2/21. For the determination of net assets per share, thenumbers of treasury shares deducted were 534,000 for FY2/20 and 493,000 for FY2/21.
3. The basis of calculating the net income (loss) per share is as follows.
FY2/20(Mar. 1, 2019 – Feb. 29, 2020)(Million yen)
FY2/21(Mar. 1, 2020 – Feb. 28, 2021)

6,363

(693)

-

-

6,363

(693)

47,107

46,598Net income (loss) attributable to owners of theparentAmount not available to common stockholders
Net income (loss) attributable to owners of theparent applicable to common shares
Average number of common shares outstanding
during the period (Thousand shares)

Subsequent Events
Not applicable.

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 theconvenience of readers who prefer an English translation.

- 15 -