Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2014
(Three Months Ended May 31, 2013)[Japanese GAAP]
June 28, 2013

Company name:

POINT INC.

Stock code:
Representative:
Contact:

2685
Michio Fukuda, Representative Director, Chairman & President

Listing: TSE 1st section
URL: http://www.point.co.jp
Tel: +81-3-6895-6011

Ryo Araya, Executive Officer,
General Manager of Corporate Planning Department

Scheduled date of filing of Quarterly Report:
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting:

July 12, 2013
Yes
None

Note: The original disclosure in Japanese was released on June 28, 2013 at 15:00 (GMT +9).
(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, 2014
(March 1, 2013 – May 31, 2013)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales
Million yen

Three months ended May 31, 2013
Three months ended May 31, 2012
Note: Comprehensive income%

Operating income

Ordinary income

Million yen

Million yen%

Net income%

Million yen

30,806
14.3
3,022
27.7
3,169
31.1
26,940
7.8
2,367
6.7
2,418
6.6
Three months ended May 31, 2013:
2,392 million yen (up 65.5 %)Three months ended May 31, 2012:
1,445 million yen (up 45.4 %)Net income per share

Diluted net income per share

Yen

Yen

Three months ended May 31, 2013
Three months ended May 31, 2012

84.07
57.07

%

1,827
1,352

35.2
26.5

84.07
-

(2) Consolidated financial position

As of May 31, 2013
As of Feb. 28, 2013
Reference: Shareholders’ equity

Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of May 31, 2013:

61,37063,41039,487 million yen

39,53738,598
As of Feb. 28, 2013:

64.3
60.9
38,598 million yen

2. Dividends
1Q-end2Q-endDividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2013
50.00
Fiscal year ending Feb. 28, 2014
Fiscal year ending Feb. 28, 2014 (forecast)
50.00
Note: Revision to the most recently announced dividend forecast: None

-

70.00

120.00-70.00

120.003. Consolidated Forecast for the Fiscal Year Ending February 28, 2014 (March 1, 2013 – February 28, 2014)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

Million yen%

First half
61,300 11.1
3,500
(7.0)
3,600
Full year
134,000 10.1
10,1003.9
10,300Note: Revision to the most recently announced consolidated forecast: None

%

(6.4)
3.5

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

2,100
6,100

%

(3.2)
10.7

Yen

96.59
280.56

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
(2) Special accounting methods in the preparation of quarterly consolidated financial statements: None

(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: Yes
4) Restatements: None
Note: Please refer to the section “2. Matters Related to Summary Information (Notes), (3) Changes in Accounting Policies
and Accounting-based Estimates, and Restatements” on page 3 for further information.

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at end of period (including treasury stock)
As of May 31, 2013:

24,400,000 shares

As of Feb. 28, 2013:

24,400,000 shares

As of Feb. 28, 2013:

2,657,885 shares

2) Number of shares of treasury stock at end of period
As of May 31, 2013:

2,657,885 shares

3) Average number of shares outstanding during the period (cumulative)
Three months ended May 31, 2013: 21,742,115 shares

Three months ended May 31, 2012:

23,696,001 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, the review procedures for these quarterly 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. 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 3 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 28, 2014 (March 1, 2013 – February 28, 2014)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

Million yen%

First half
55,300
4.0
3,700
2.8
3,800
Full year
120,300
4.5
9,800
5.9
10,000Note: Revision of non-consolidated forecast during the period: None

%

0.2
3.8

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

2,300
6,100

%

5.2
12.2

Yen

105.79280.56

POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Qualitative Information Regarding Consolidated Results of Operations

2(2) Qualitative Information Regarding Consolidated Financial Position

2(3) Qualitative Information Regarding Consolidated Forecast

3

2. Matters Related to Summary Information (Notes)

3(1) Changes in Significant Subsidiaries during the Period

3(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

3(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

3

3. Quarterly Consolidated Financial Statements

4(1) Quarterly Consolidated Balance Sheets

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6(3) Going Concern Assumption

7(4) Significant Changes in Shareholders’ Equity

7

4. Supplementary Information

8(1) Number of Stores for Formats and Regions

8(2) Sales for Brands and Regions

9(3) Sales for Merchandise Categories

9

- 1 -

POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

1. Qualitative Information Regarding Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Results of Operations
In the first quarter of the current fiscal year (March 1, 2013 to May 31, 2013), the Japanese economy recovered at amoderate pace. There was an improvement in corporate earnings, particularly at major businesses, mainly because of an
improvement in the environment for exports and the benefits of government’s economic policy and monetary policy. In
addition, capital investments stopped declining.
In the casual wear market, in which our group operates, the operating environment was favorable overall because ofa rebound in consumer spending along with warmer weather.
In this environment, existing-store sales were 103.7% of the same period of the previous fiscal year, andconsolidated net sales increased 14.3%.
Sales of the REPIPI ARMARIO brand were higher and the LOWRYS FARM, HARE and APART BY LAWRYS brands
all posted solid sales.
We continued to aggressively open new stores and close unprofitable ones in Japan: we opened 39 new stores, andclosed four, resulting in a domestic network of 820 stores at the end of the first quarter of the current fiscal year(including 31 e-commerce websites).
At BABYLONE INC., including the operations of this company’s subsidiary universite CO., LTD., there were 41
stores at the end of the first quarter as three stores were opened during the period.
BABYLONE INC. changed its name from trinity Co., Ltd. on April 15, 2013.
Overseas, two stores were opened and seven were closed in Taiwan, one store was closed in Hong Kong, threestores were opened in China, and one store was opened in Singapore. At the end of the first quarter of the current
fiscal year, there were 26 stores in Taiwan, 23 in Hong Kong, 20 in China, and five in Singapore for a total of 74
overseas stores.
Regarding earnings, the gross profit margin increased 0.7 percentage point year on year to 62.7%. This was
attributable to a lower cost of procuring merchandise because of growth in internal production and to measures tocontrol prices at which merchandise is sold.
Selling, general and administrative (SG&A) expenses were generally in line with plans despite higher personnel
expenses caused by the aggressive store openings during the first quarter. As a result, the SG&A-to-sales ratio
decreased 0.3 percentage point year on year to 52.9% and the operating income margin increased 1.0 percentage
point to 9.8%.
We booked impairment losses at nine stores totaling 27 million yen as an extraordinary loss.
As a result, consolidated net sales in the first quarter of the current fiscal year increased 14.3% year-on-year to30,806 million yen, operating income increased 27.7% to 3,022 million yen, ordinary income increased 31.1% to
3,169 million yen, and net income increased 35.2% to 1,827 million yen.
(2) Qualitative Information Regarding Consolidated Financial Position
Total assets decreased 2,040 million yen from as of February 28, 2013 to 61,370 million yen as of May 31, 2013.
This was mainly due to increases in accounts receivable-trade of 1,805 million yen, inventories of 1,024 million yen
and property, plant and equipment of 896 million yen in spite of a decrease in short-term investment securities(commercial papers and Treasury Discount Bills) of 6,499 million yen.
Liabilities decreased 2,979 million yen to 21,832 million yen. This was mainly due to a decrease in accounts
payable-trade of 3,192 million yen.
Net assets increased 939 million yen to 39,537 million yen. This was mainly due to an increase in valuationdifference on available-for-sale securities of 440 million yen.

- 2 -POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

(3) Qualitative Information Regarding Consolidated Forecast
We maintain the first-half and full-year consolidated forecasts for the fiscal year ending on February 28, 2014 thatwere announced on April 4, 2013. However, these forecasts do not include the effect of the management integrationof TRINITY ARTS inc. and NATURAL NINE HOLDINGS CO., LTD. and the shift to a holding company structure(hereinafter the “management integration”.) It is not possible to determine at this time a reliable consolidated
forecast following the management integration. We plan to announce a forecast in September 2013 after taking into
consideration the forecasts of group companies following the integration. NATURAL NINE HOLDINGS CO., LTD.
became a consolidated subsidiary starting in the second quarter of the current fiscal year and we plan to make
TRINITY ARTS inc. a consolidated subsidiary starting in the third quarter.
For details about the management integration, please refer to the April 4, 2013 press release (Japanese version only)
announcing the agreement for an exchange of stock with TRINITY ARTS inc. and NATURAL NINE HOLDINGS
CO., LTD., the establishment of a preparatory company for the shift to a holding company structure, the agreement
to absorb and divest businesses, and the change in the company name and other items prescribed in the Articles ofIncorporation.
[Reference] Qualitative Information Regarding Non-consolidated Forecast
We maintain the first-half and full-year non-consolidated forecasts for the fiscal year ending on February 28, 2014
that were announced on April 4, 2013. However, these forecasts do not include the effect of the management
integration. Although there is no change in the forecast for the first half, the planned shift to a holding company on
September 1, 2013 will eliminate revenue from the sale of merchandise at POINT INC. Instead, there will berevenue from dividends from group companies, management guidance and administrative services revenue fromgroup companies, and other revenue. Expenses will be primarily the cost of performing the functions of a holding
company. As a result, non-consolidated sales or revenue as well as earnings are expected to decline. It is notpossible to determine a reliable forecast at this time. We plan to announce a non-consolidated forecast in September
2013 after taking into consideration the forecasts of group companies following the integration.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in accounting policies that are difficult to distinguish from changes in accounting-based estimates
Following tax law revisions, from the first quarter of the current fiscal year, the Company and its domestic
consolidated subsidiaries have changed the method of depreciation of property, plant and equipment acquired on
or after March 1, 2013 in line with methods prescribed in the revised Corporation Tax Act.
The effect of this change on operating income, ordinary income, and income before income taxes and minority
interests in the first quarter of the current fiscal year is insignificant.

- 3 -POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Million yen)First quarter of FY2/14(As of May 31, 2013)

FY2/13(As of Feb. 28, 2013)
AssetsCurrent assets
Cash and deposits

11,84912,225

Accounts receivable-trade

4,829

6,634

Short-term investment securities

6,499

-

Inventories

7,749

8,773

Other

2,296

1,739

Allowance for doubtful accounts

(34)

(57)

33,19029,316Store interior equipment, net

5,933

6,893

Other, net

5,061

4,997

Total property, plant and equipment

10,994

11,890

1,797

1,704

Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Goodwill

812

924

2,609

2,629

Lease and guarantee deposits

11,306

11,714

Other

5,513

6,024

Other
Total intangible assets
Investments and other assets

Allowance for doubtful accounts

(204)

(205)

Total investments and other assets

16,616

17,53430,22032,054

63,41061,370Accounts payable-trade

13,90910,716

Short-term loans payable

508

806

Total noncurrent assets
Total assets
Liabilities
Current liabilities

235

233

Accounts payable-other

5,581

6,592

Income taxes payable

2,378

1,604

Provision for bonuses

1,212

650

Current portion of long-term loans payable

Provision for directors' bonuses

51-

Other provision

163

275

Other

191

256

24,231

21,134

Total current liabilities- 4 -POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

(Million yen)First quarter of FY2/14(As of May 31, 2013)

FY2/13(As of Feb. 28, 2013)
Noncurrent liabilities
Bonds payable3144Long-term loans payable

261

289

Provision

101

101

Other

187

262

Total noncurrent liabilities

581

698

24,812

21,832

2,660

2,660

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

2,517

2,517

Retained earnings

40,826

41,151

Treasury stock(8,188)(8,188)

Total shareholders' equity

37,81638,141

792

1,233

7

0

Foreign currency translation adjustment

(17)

112

Total accumulated other comprehensive income

781

1,346

-

50

38,59839,53763,41061,370

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

Subscription rights to shares
Total net assets
Total liabilities and net assets- 5 -POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(For the Three-month Period)First three months of FY2/13(Mar. 1, 2012 – May 31, 2012)(Million yen)First three months of FY2/14(Mar. 1, 2013 – May 31, 2013)

Net sales

26,94030,806

Cost of sales

10,246

11,495Gross profit

16,694

19,311

Selling, general and administrative expenses

14,326

16,289Operating income

2,367

3,022

Non-operating income
Dividends income

22

22

Insurance premiums refunded cancellation

-

62

Other

35

73

Total non-operating income

57

158

Interest expenses

02Commitment fee

2

3

Loss on insurance cancellation

-

3

Other

4

0

Total non-operating expenses

7

10

2,418

3,169

Impairment loss

78

27

Loss on valuation of investment securities

14-

Total extraordinary losses

93

27

Income before income taxes and minority interests

2,324

3,141

Income taxes-current

1,251

1,570

Income taxes-deferred

(275)

(256)

Total income taxes

976

1,314

1,348

1,827

(4)

-

1,352

1,827

Non-operating expenses

Ordinary income
Extraordinary loss

Income before minority interests
Minority interests in loss
Net income- 6 -POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

Quarterly Consolidated Statements of Comprehensive Income(For the Three-month Period)First three months of FY2/13(Mar. 1, 2012 – May 31, 2012)(Million yen)First three months of FY2/14(Mar. 1, 2013 – May 31, 2013)

1,348

1,827

Valuation difference on available-for-sale securities

8

440

Deferred gains or losses on hedges

(6)

(6)

Foreign currency translation adjustment

94

130

Total other comprehensive income

97

564

1,445

2,392

1,440

2,392

5

-

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests(3) Going Concern Assumption
Not applicable.

(4) Significant Changes in Shareholders’ Equity
Not applicable.

- 7 -POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

4. Supplementary Information(1) Number of Stores for Formats and Regions
Number of stores
Store format / region

First three months of FY2/14

As of Feb.
28, 2013

OpenedRebranded

ClosedIncrease/decrease

RAGEBLUE

62

3

-

(1)

2

64

LOWRYS FARM

149

12

-

(1)

11

160

GLOBAL WORK

172

5

-

(2)

3

175

JEANASIS

81

2

-

-

2

83

HEATHER

75

2

-

-

2

77

As of May31, 2013

HARE

35

-

-

-

-

35

NINE BLOCKS (Note 3)

29

3

-

-

3

32

APART BY LAWRYS (Note 4)

29

3

-

-

3

32

LEPSIM LOWRYS FARM

111

1

-

-

1

112

REPIPI ARMARIO

23

5

-

-

5

28

JEWELIUM

4

-

-

-

-

4

TURNO JEANA

5

1

-

-

1

6

ME PERCENT

3

-

-

-

-

3

BLISS POINT

6

2

-

-

2

8

COLLECT POINT (Multiple brand shop)

1

-

-

-

-

1

Total (POINT INC.)

785

39

-

(4)

35

820

38

3

-

-

3

41

BABYLONE INC. (Note 5)
Total (Consolidated subsidiary in Japan)

38

3

-

-

3

41

Total (Japan)

823

42

-

(4)

38

861

Taiwan

31

2

-

(7)

(5)

26

Hong Kong

24

-

-

(1)

(1)

23

China

17

3

-

-

3

20

4

1

-

-

1

5

Singapore
Total (Overseas)

76

6

-

(8)

(2)

74

Total (Group)

899

48

-

(12)

36

935

Notes: 1. The number of stores includes e-commerce websites of other companies and e-commerce websites of POINT INC.
2. Stores that sell merchandise of two or more brands are categorized as the brand that operates each store.
3. NINE BLOCKS stores include brand outlets.
4. APART BY LAWRYS includes MALLIKA FLICKA.
5. BABYLONE INC. includes its subsidiary universite CO., LTD.

- 8 -

POINT INC. (2685) Summary of 1Q Financial Results for February 2014 Fiscal Year

(2) Sales for Brands and RegionsFirst three months of FY2/14

Brand / region

Sales (million yen)

YoY change (%)

Composition (%)

RAGEBLUE

2,132

6.9

9.2

LOWRYS FARM

6,494

21.1

14.6

GLOBAL WORK

6,026

19.6

3.6

JEANASIS

2,663

8.6

2.7

HEATHER

2,197

7.1

4.8

HARE

1,285

4.2

16.3

NINE BLOCKS (Note 1)

2,156

7.0

6.3

824

2.7

17.8

APART BY LAWRYS (Note 2)
LEPSIM LOWRYS FARM

2,821

9.2

(2.0)

REPIPI ARMARIO

707

2.3

54.0

JEWELIUM

99

0.3(30.8)TURNO JEANA

95

0.3

36.3

ME PERCENT

60

0.2

-

BLISS POINT

407

1.3

12.4

Others0

0.0-

Total (POINT INC.)

27,97290.8

7.9

BABYLONE INC. (Notes 3, 4)

1,156

3.8

-

Total (Consolidated subsidiary in Japan)

1,156

3.8

-

Total (Japan)

29,128

94.6

12.3

Taiwan

363

1.2

11.0

Hong Kong

967

3.1

76.8

China

213

0.7

62.1

Singapore

134

0.4

-

Total (Overseas)

1,678

5.4

65.6

Total (Group)

30,806

100.0

14.3

Notes: 1. NINE BLOCKS stores include brand outlets.
2. APART BY LAWRYS includes MALLIKA FLICKA.
3. BABYLONE INC. includes its subsidiary universite CO., LTD.
4. No year-on-year change is shown for BABYLONE INC. because this company became a consolidated subsidiary on
November 1, 2012.

(3) Sales for Merchandise Categories
PeriodCategory

First three months of FY2/14
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

5,486

17.8

Lady’s apparel (bottoms, tops)

19,98964.9

11.6

Others

5,330

17.3

26.7

30,806

100.0

14.3

Total

13.8

Note: The others category includes additions to the provision for point card certificates and other items.

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 the convenience of readers who
prefer an English translation.

- 9 -