Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending February 29, 2012
(Six Months Ended August 31, 2011)[Japanese GAAP]
Company name:

September 30, 2011
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 filing of Quarterly Report:
October 14, 2011
Scheduled date of payment of dividend:
October 24, 2011Preparation 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 September 30, 2011 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending February 29, 2012
(March 1, 2011 – August 31, 2011)(1) Consolidated results of operations (cumulative)
Net sales
Six months ended Aug. 31, 2011
Six months ended Aug. 31, 2010

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

Operating income

Million yen%

Million yen

52,55047,551

10.5
8.7

4,677
6,019%

Million yen(22.3)(10.5)Net income pershare

Diluted net income pershare

Yen

Yen

Six months ended Aug. 31, 2011
Six months ended Aug. 31, 2010

100.82130.43

4,753
6,111%

Million yen(22.2)
(9.9)

%

2,395
3,173

(24.5)(19.4)-(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of Aug. 31, 2011
As of Feb. 28, 2011
Reference: Shareholders’ equity

58,51662,089Aug. 31, 2011:

38,06137,33037,821 million yen

64.6
1,591.69
59.8
1,561.71
Feb. 28, 2011: 37,109 million yen

2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2011
Fiscal year ending Feb. 29, 2012
Fiscal year ending Feb. 29, 2012 (forecast)
Note:
Revision of dividend forecast during the period: None

50.00
50.00

-70.00120.00-70.00120.003. Consolidated Forecast for the Fiscal Year Ending February 29, 2012 (March 1, 2011 – February 29, 2012)(Percentages represent year-on-year changes)
Net sales
Million yen

Full year
Note:%

Operating income

Ordinary income

Million yen

Million yen%

116,000
9.5
14,000(8.7)
14,100
Revision of consolidated forecast during the period: None%(9.1)

Net income
Million yen

7,500

Net income per share%(10.7)

Yen

315.63

4. Others(1) Changes in significant subsidiaries during the period: None
Note: Changes in specified subsidiaries affecting the scope of consolidation during the period(2) Application of simplified accounting methods and special accounting methods: Yes
Note: Application of simplified accounting methods and special accounting methods in the preparation of quarterly consolidated
financial statements(3) Changes in accounting principles, procedures and presentation methods
1) Changes caused by revision of accounting standards: Yes
2) Other changes: None
Note: Changes in accounting principles, procedures and presentation methods for preparation of quarterly consolidated financial
statements described in “Changes in Significant Accounting Policies in the Preparation of Quarterly ConsolidatedFinancial Statements”(4) Number of outstanding shares (common stock)1) Number of shares outstanding at end of period (including treasury stock)
Aug. 31, 2011:

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
Aug. 31, 2011:

637,885 shares

3) Average number of shares outstanding during the period (cumulative)
Six months ended Aug. 31, 2011:23,762,115 shares

Six months ended Aug. 31, 2010:

24,332,116 shares

Note 1: Indication of quarterly review procedure implementation status
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments andExchange Law. At the time of disclosure, we have not completed the review process for these quarterly consolidated financialstatements.
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 the section“Qualitative information regarding consolidated forecast” on page 2 regarding preconditions or other related matters for theforecast shown above.

Reference: Summary of Non-consolidated Forecast
Non-consolidated Forecast for the Fiscal Year Ending February 29, 2012 (March 1, 2011 – February 29, 2012)(Percentages represent year-on-year changes)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

Million yen%

Full year
112,000
8.5
13,400(8.1)
13,600Note: Revision of non-consolidated forecast during the period: None%(8.6)

Net income
Million yen

7,200

Net income per share%(10.4)

Yen

303.00POINT INC. (2685) Summary of 2Q Financial Results for February 2012 Fiscal Year

1. Qualitative Information Regarding Quarterly Consolidated Financial Performance(1) Qualitative information regarding consolidated results of operations
In the first half of the current fiscal year (March 1, 2011 to August 31, 2011), production and exports in Japan, aftera steep drop, returned to about pre-earthquake levels and domestic private-sector demand also recovered as
constraints on the supply side caused by the earthquake were mostly alleviated. Rolling blackouts and other actions
that people had worried about were averted because concerted efforts to conserve electricity prevented electricity
shortages during the summer. However, consumer spending remained somewhat lackluster due to persistentuncertainty about the economic outlook and other factors.
In the casual wear market, in which our group operates, consumer spending recovered quickly from the downturncaused by the earthquake. But market conditions became rather challenging late in the summer primarily because
summer sales took place earlier than usual.
In this environment, domestic existing-store sales were 96.4% of the same period of the previous fiscal year.
However, consolidated net sales increased 10.5% due to newly opened stores and growth in overseas sales.
Domestic sales growth rates were high for two new brands, COLLECT POINT and REPIPI ARMARIO, and for
RAGEBLUE and HEATHER among established brands.
As for new brands, NASHDULEK was launched in March.
We continued to aggressively open new stores and close unprofitable ones in Japan: we opened 71 new stores, andclosed 18, resulting in a domestic network of 758 stores at the end of the first half (including 30 e-commercewebsites).
Overseas, one store was opened and two were closed in Taiwan, two stores were opened and one store was closed in
Hong Kong, and one store was opened in China. At the end of the first half, there were 21 stores in Taiwan, 14 inHong Kong and seven in China for a total of 42 overseas stores.
Regarding profits, the gross profit margin was 58.7%, down 1.2 points year-on-year, because of extensive measures
to increase sales in response to the impact of the earthquake last March.
Selling, general and administrative (SG&A) expenses increased 16.6% year-on-year primarily because of higher
personnel expenses associated with the addition of many new stores and expanded advertising and marketing
activities. As a result, the SG&A-to-sales ratio rose 2.6 points year-on-year to 49.8%, and the operating income
margin declined 3.8 points to 8.9%.
We booked an extraordinary loss of 706 million yen, which includes a 105 million yen loss on retirement of
non-current assets, a 142 million yen loss on cancellation of store rental contracts, a 19 million yen impairment loss,and a 439 million yen earthquake-related loss.
As a result, consolidated net sales in the first half increased 10.5% year-on-year to 52,550 million yen, operating
income decreased 22.3% to 4,677 million yen, ordinary income decreased 22.2% to 4,753 million yen, and net
income decreased 24.5% to 2,395 million yen.

- 1 -POINT INC. (2685) Summary of 2Q Financial Results for February 2012 Fiscal Year

(2) Qualitative information regarding consolidated financial position
1) Balance sheet position
Total assets decreased 3,573 million yen from as of February 28, 2011 to 58,516 million yen as of August 31, 2011.
This was mainly due to a decrease in short-term investment securities (commercial papers and treasury bills) of
4,499 million yen.
Liabilities decreased 4,303 million yen to 20,455 million yen. This was mainly due to decreases in accounts
payable-trade of 2,219 million yen and income taxes payable of 1,441 million yen.
Net assets increased 730 million yen to 38,061 million yen mainly due to an increase in shareholders’ equity of 732
million yen.
2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of August 31, 2011 amounted to 21,415 million yen, or 4,735
million yen less than as of February 28, 2011.
A summary of cash flows from each activity is as follows:i. Cash flows from operating activities
Net cash provided by operating activities totaled 269 million yen. The main factors include income before income
taxes of 4,050 million yen, an increase in accounts receivable-trade of 420 million yen, a decrease in accounts
payable-trade of 2,220 million yen, and income taxes paid of 3,019 million yen.
ii. Cash flows from investing activities
Net cash used in investing activities totaled 3,340 million yen. This was mainly due to the payment of 2,875 million
yen for purchase of property, plant and equipment.
iii. Cash flows from financing activities
Net cash used in financing activities totaled 1,662 million yen. This was due to cash dividends paid.
(3) Qualitative information regarding consolidated forecast
There are no revisions to the consolidated forecast for the current fiscal year that was announced on June 30, 2011.

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