Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending February 29, 2016
(Six Months Ended August 31, 2015)[Japanese GAAP]
September 30, 2015

Company name:
Stock code:
Representative:
Contact:

Adastria Co., Ltd.
Listing: TSE 1st section
2685
URL: http://www.adastria.co.jp
Michio Fukuda, Representative Director, Chairman & CEO
Masatake Hayashi, Senior Executive Officer, General Manager of Administration Division
Tel: +81-3-6895-6000
Scheduled date of filing of Quarterly Report:
October 15, 2015
Scheduled date of payment of dividend:
October 23, 2015
Preparation 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, 2015 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, 2016
(March 1, 2015 – August 31, 2015)(1) Consolidated results of operations (cumulative)(Percentages represent year-on-year changes)

Net sales
Million yen

Six months ended Aug. 31, 2015
Six months ended Aug. 31, 2014
Note: Comprehensive income%

Operating income

Ordinary income

Million yen

Million yen%

Net income%

Million yen

97,032
10.2
8,132
299.0
8,324 282.8
88,05138.1
2,038 (45.9)
2,174 (45.4)
Six months ended Aug. 31, 2015:
7,310 million yen (up 906.3%)
Six months ended Aug. 31, 2014:
726 million yen (down 75.8%)
Net income per share

Diluted net income per share

Yen

Yen

Six months ended Aug. 31, 2015
Six months ended Aug. 31, 2014
Reference: EBITDA
EPS before goodwill amortization

%

4,156
109

(94.8)

171.194.51
Six months ended Aug. 31, 2015:
Six months ended Aug. 31, 2014:

4.51
12,272 million yen (up 88.3%)
6,517 million yen

Six months ended Aug. 31, 2015:
Six months ended Aug. 31, 2014:

217.36 yen (up 300.7%)
54.25 yen(*) For more details regarding definition, computational method and other matters of these indices, please refer to the section“Explanation of Results of Operations” on page 2.
(2) Consolidated financial position

As of Aug. 31, 2015
As of Feb. 28, 2015
Reference: Shareholders’ equity

Total assets

Net assets

Equity ratio

Million yen

Million yen%

87,397
83,742As of Aug. 31, 2015: 52,442 million yen

52,44260.0
46,233
55.2
As of Feb. 28, 2015: 46,233 million yen

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

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Feb. 28, 2015
30.00
Fiscal year ending Feb. 29, 2016
40.00
Fiscal year ending Feb. 29, 2016 (forecast)
Note: Revision to the most recently announced dividend forecast: Yes

-

45.00

75.00

-

70.00

110.003. Consolidated Forecast for the Fiscal Year Ending February 29, 2016 (March 1, 2015 – February 29, 2016)
Net sales
Million yen%

Operating income

Ordinary income

Million yen

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

Yen

Full year
198,000
7.3
14,000 134.0
14,300 121.6
6,800
280.06
Note: Revision to the most recently announced consolidated forecast: Yes
Reference: EBITDA
Fiscal year ending Feb. 29, 2016 (forecast): 22,700 million yen (up 44.3%)
EPS before goodwill amortization
Fiscal year ending Feb. 29, 2016 (forecast):
370.67 yen (up 161.6%)

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Note: For more details regarding changes in subsidiaries that do not subject to specified subsidiaries, please refer to “2.
Matters Related to Summary Information (Notes), (1) Changes in Significant Subsidiaries during the Period” on page4.

(2) Application of special accounting methods for presenting 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: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of Aug. 31, 2015:

24,400,000 shares

As of Feb. 28, 2015:

24,400,000 shares

As of Feb. 28, 2015:

117,988 shares

2) Number of treasury shares at the end of the period
As of Aug. 31, 2015:

119,738 shares

3) Average number of shares outstanding during the period (cumulative)
Six months ended Aug. 31, 2015:

24,281,417 shares

Six months ended Aug. 31, 2014:

24,282,022 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 and Exchange Act. 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“Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4 regarding preconditions or otherrelated matters for the forecast shown above.

Reference: Summary of Non-consolidated Forecast
Non-consolidated Forecast for the Fiscal Year Ending February 29, 2016 (March 1, 2015 – February 29, 2016)
Net sales
Million yen%

Operating income

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

Million yen

Million yen

Million yen

%

%

%

Yen

Full year
185,400
13,40013,8009,300
383.03
Note: Revision to the most recently announced non-consolidated forecast: Yes
The Company is no longer a holding company following the absorption-type merger between consolidated subsidiaries on
March 1, 2015.
Therefore no comparisons with the previous fiscal year are shown.

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Matters Related to Summary Information (Notes)

4(1) Changes in Significant Subsidiaries during the Period

4(2) Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements

4(3) Changes in Accounting Policies and Accounting-based Estimates, and Restatements

4

3. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income7(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Subsequent Events

10

4. Supplementary Information

11(1) Number of Stores

11(2) Sales for Brands and Regions

12(3) Sales for Merchandise Categories

12

- 1 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year (March 1, 2015 to August 31, 2015), the Japanese economy continued torecover slowly despite the risk of a downturn caused by declining growth rates in China and other countries. The
recovery was backed by higher corporate earnings and improvements in jobs and personal income resulting fromthe benefits of the Japanese government’s economic stimulus and monetary measures.
Sales in the casual wear market, where Adastria Co., Ltd. (hereafter “the Company”) operates its main brands,
were generally strong because of favorable weather along with solid personal consumption expenditures.
Consolidated sales were 10.2% higher than one year earlier, benefiting from favorable weather, efforts toimprove quality and upgrade sales activities, and the growth in e-commerce website sales. Among our core
brands, GLOBAL WORK and JEANASIS showed strong growth.
Regarding the store network, we opened 54 stores (including 16 overseas), and closed 53 (including 15 overseas),
resulting in a total network of 1,357 stores (including 107 overseas) at the end of the second quarter of thecurrent fiscal year.
As for earnings, the gross profit margin improved by 1.0 percentage point from one year earlier to 57.3%. The
increase in the cost of sales caused by the weaker yen was more than offset by a decrease in price discount losses
because of the strong sales.
The ratio of selling, general and administrative (SG&A) expenses to sales decreased 5.0 percentage points fromone year earlier to 48.9% and the operating margin sharply increased 6.1 percentage points to 8.4%. The main
reason was the appropriate control of SG&A expenses. For example, expenses for TV commercials decreased
because of the improvement in brand recognition among customers.
There were extraordinary losses of 168 million yen for impairment losses on store assets, and 173 million yen forloss on sales of shares of subsidiaries and associates.
As a result, consolidated net sales in the first half of the current fiscal year increased 10.2% year-on-year to
97,032 million yen, operating income increased 299.0% to 8,132 million yen, ordinary income increased 282.8%
to 8,324 million yen, and net income was 4,156 million yen (net income of 109 million yen in the same period of
the previous fiscal year).
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 88.3% to 12,272 million yen
and earnings per share (EPS), before goodwill amortization, rose 300.7% to 217.36 yen. (*)
The Company conducted an absorption-type company split on September 1, 2015. The product planning andproduction control operations for apparel and other products of consolidated subsidiary N9&PG Co., Ltd. wereseparated and transferred to the Company.
The Company Group’s original plan was to create a faster merchandise supply infrastructure by having N9&PG
perform all activities from product planning and production control to logistics, including for overseas operations.
However, in order to optimize the value chain, it turned out to be more appropriate for the product planning andproduction control functions to be more closely linked to retailing operations than to distribution. Therefore, theCompany, which operates the retail business, made the decision to consolidate the product planning andproduction control functions of N9&PG. With the prospect of strengthening and expanding overseas distribution
capabilities, the logistics function will remain at this subsidiary. We believe that this divestiture and absorption
will create an operating framework that will increase corporate value by improving efficiency and speeding up
decision making.
(*) Amortization of goodwill that mainly resulted from the consolidation of TRINITY ARTS INC. (subsequently
absorbed by the Company) causes large declines in operating income and all subsequent categories of profits
from the fiscal year ended on February 28, 2014. Since goodwill amortization is not a cash expense, this- 2 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

amortization created a large gap between changes in cash flows and changes at all levels of profits startingwith operating income. Furthermore, comparisons with foreign companies are difficult because of differencesin accounting standards of individual countries for recording goodwill amortization. As a result, we are newly
announcing EBITDA and EPS before goodwill amortization as reference financial indicators.
EBITDA
Operating income + Depreciation + Amortization of goodwill (SG&A expenses)
EPS before goodwill amortization(Net income + Amortization of goodwill (SG&A expenses, and extraordinary loss)+ Impairment losses (goodwill)) / Average number of shares outstanding during the period(2) Explanation of Financial Position
1) Balance sheet position
Total assets increased 3,654 million yen from as of February 28, 2015 to 87,397 million yen as of August 31,
2015. This was mainly due to increases in cash and deposits of 4,724 million yen and investment securities of
4,660 million yen, while there were decreases in goodwill of 1,335 million yen and other under investments andother assets (deferred tax assets, etc.) of 2,582 million yen.
Liabilities decreased 2,553 million yen to 34,955 million yen. This was mainly due to decreases in short-termloans payable of 1,779 million yen and accounts payable-other of 1,175 million yen.
Net assets increased 6,208 million yen to 52,442 million yen, mainly due to increases in retained earnings of
3,064 million yen and valuation difference on available-for-sale securities of 3,320 million yen.
2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of August 31, 2015 amounted to 12,392 million yen, or
4,725 million yen more than as of February 28, 2015.
A summary of cash flows from each activity during the first half of the current fiscal year is as follows:
Cash flows from operating activities
Net cash provided by operating activities totaled 9,844 million yen (compared with 1,624 million yen provided in
the same period of the previous fiscal year). The main factors include income before income taxes and minority
interests of 7,981 million yen, depreciation of 3,096 million yen and income taxes paid of 2,707 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 1,950 million yen (compared with 7,047 million yen used in the same
period of the previous fiscal year). This was mainly due to the payments of 1,526 million yen for the purchase ofproperty, plant and equipment and 352 million yen for the purchase of intangible assets.
Cash flows from financing activities
Net cash used in financing activities totaled 3,292 million yen (compared with 4,007 million yen provided in thesame period of the previous fiscal year). This was mainly due to a decrease in short-term loans payable of 2,181
million yen and cash dividends paid of 1,102 million yen.

- 3 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The Company has revised the full year forecasts for the fiscal year ending February 29, 2016 that wereannounced on April 6, 2015, based on the results of operations in the first half of the current fiscal year.
For details, please refer to the announcement regarding revision of forecast (Japanese version only) announced
on September 30, 2015.
We expect EBITDA to increase 44.3% year-on-year to 22,700 million yen and EPS before goodwill amortization
to increase 161.6% to 370.67 yen for the fiscal year ending on February 29, 2016.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
Although this is not a change in a specified subsidiary, the Company’s consolidated subsidiaries POINT INC. and
TRINITY ARTS INC. were dissolved and excluded from the scope of consolidation as an absorption-type merger
was conducted on March 1, 2015 between the Company, which is the surviving company, and POINT INC. and
TRINITY ARTS INC.
(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
Not applicable.

- 4 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Million yen)
Second quarter of FY2/16(As of Aug. 31, 2015)

FY2/15(As of Feb. 28, 2015)
AssetsCurrent assets
Cash and deposits

7,677

12,401

Notes and accounts receivable-trade

7,593

9,398

Inventories

14,48813,855

Other

4,777

2,848

Allowance for doubtful accounts

(48)

(82)

34,48838,421

Store interior equipment, net

8,420

7,610

Other, net

4,487

4,461

Total property, plant and equipment

12,90812,072

Goodwill

7,921

6,585

Other

1,372

1,494

Total intangible assets

9,293

8,080

Investment securities

7,604

12,265

Lease and guarantee deposits

16,924

16,640

Other

2,754

171

Allowance for doubtful accounts

(232)

(254)

Total investments and other assets

27,051

28,823

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

Intangible assets

Investments and other assets

Total non-current assets

49,253

48,97583,74287,397

6,246

8,358

Electronically recorded obligations-operating

8,855

8,504

Short-term loans payable

3,753

1,973

Accounts payable-other

9,687

8,512

Income taxes payable

3,293

3,427

Provision for bonuses

2,036

2,298

358

303

Other

1,008

362

Total current liabilities

35,24033,741

Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade

Other provisionNon-current liabilities
Provision

95

94

Other

2,173

1,119

Total non-current liabilities

2,268

1,214

37,50834,955

Total liabilities- 5 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

(Million yen)
Second quarter of FY2/16(As of Aug. 31, 2015)

FY2/15(As of Feb. 28, 2015)
Net assets
Shareholders’ equity
Capital stock

2,660

2,660

Capital surplus

6,987

6,987

Retained earnings

32,65135,715

Treasury shares

(406)

(415)

Total shareholders’ equity

41,892

44,947

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

3,631

6,951

Deferred gains or losses on hedges

357

26

Foreign currency translation adjustment

352

516

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

- 6 -

4,341

7,494

46,23352,442

83,74287,397

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY2/15(Mar. 1, 2014 – Aug. 31, 2014)(Million yen)First six months of FY2/16(Mar. 1, 2015 – Aug. 31, 2015)

Net sales

88,051

97,032

Cost of sales

38,51541,480Gross profit

49,53655,552

Selling, general and administrative expenses

47,49847,419Operating income

2,038

8,132

Dividend income

40

53

Foreign exchange gains

47-

Non-operating income

Gain on valuation of derivatives

-

42

Other

147

296

Total non-operating income

235

391

23

24

Foreign exchange losses-

108

Loss on valuation of derivatives

69-

Cost of lease revenue

-

50

Other

6

16

Total non-operating expenses

99

200

2,174

8,324

Gain on sales of investment securities

9-

Total extraordinary income

9-

Impairment loss
Loss on sales of shares of subsidiaries andassociates

263

168

-

173

Total extraordinary losses

263

342

Income before income taxes and minority interests

1,920

7,981

Income taxes-current

2,344

3,246

Income taxes-deferred

(533)

578

Total income taxes

1,810

3,824

Income before minority interests

109

4,156

Net income

109

4,156

Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income

Extraordinary losses- 7 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY2/15(Mar. 1, 2014 – Aug. 31, 2014)(Million yen)First six months of FY2/16(Mar. 1, 2015 – Aug. 31, 2015)

Income before minority interests

109

4,156

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

720

3,320

37

(330)

Foreign currency translation adjustment

(140)

163

617

3,153

726

7,310

726

7,310

-

-

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests- 8 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY2/15(Mar. 1, 2014 – Aug. 31, 2014)(Million yen)First six months of FY2/16(Mar. 1, 2015 – Aug. 31, 2015)

Income before income taxes and minority interests

1,920

7,981

Depreciation

3,377

3,096

Cash flows from operating activities

Impairment loss
Amortization of goodwill

263

168

1,207

1,121

Increase (decrease) in allowance for doubtful accounts

65

56

Increase (decrease) in provision for bonuses
Loss (gain) on sales of shares of subsidiaries andassociates
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in accounts payable-other

588

261

-

173

(2,315)(1,905)

(235)

585

(1,129)

1,931

164

(469)

334

(915)

Increase (decrease) in accrued consumption taxes
Other, net

(670)

438

Subtotal

3,570

12,524

Interest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

41

53

(22)

(26)

(1,965)(2,707)

1,624

9,844

(4,375)(1,526)24-

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of investment securities

(562)

(352)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Proceeds from sales of shares of subsidiaries resulting
in change in scope of consolidation
Other, net(2,443)

(541)

307

441

-

29

1

(0)

Net cash provided by (used in) investing activities(7,047)(1,950)

Increase (decrease) in short-term loans payable

4,617(2,181)

Cash dividends paid

(608)

(1,102)

(1)

(9)

4,007

(3,292)(32)

124

Net increase (decrease) in cash and cash equivalents(1,448)

4,725

Cash and cash equivalents at beginning of period

8,529

7,667

Cash and cash equivalents at end of period

7,080

12,392

Purchase of intangible assets

Cash flows from financing activities

Purchase of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents- 9 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Subsequent Events
Transaction under Common Control
The Company conducted an absorption-type company split on September 1, 2015. The product planning andproduction control operations for apparel and other products of consolidated subsidiary N9&PG Co., Ltd. wereseparated and transferred to the Company.
N9&PG Co., Ltd. changed the company name to Adastria Logistics Co., Ltd. on the same day.
(1) Summary1) Name and activities of the business transferred to the Company
Name of business:

Planning and manufacturing operations for apparel and other products of consolidated
subsidiary N9&PG Co., Ltd.

Business activities:

Planning and manufacturing operations for apparel and other products, and logistics
operations

2) Effective date
September 1, 2015
3) Legal structure
An absorption-type company split with the Company, which is to receive the divested business, and N9&PG
as the company divesting the business4) Name of the company after divestiture and absorption
Adastria Co., Ltd. (the Company)
5) Item concerning summary of other transactions
The Company Group’s original plan was to create a faster merchandise supply infrastructure by having
N9&PG perform all activities from product planning and production control to logistics, including foroverseas operations. However, in order to optimize the value chain,it turn out to be more appropriate for the

product planning and production control functions to be more closely linked to retailing operations than to
distribution. Therefore, the Company, which operates the retail business, made the decision to consolidate theproduct planning and production control functions of N9&PG. With the prospect of strengthening andexpanding overseas distribution capabilities, the logistics function will remain at this subsidiary.
We believe that this divestiture and absorption will create an operating framework that will increase corporate
value by improving efficiency and speeding up decision making.
(2) Summary of accounting methods applied
Accounting methods used for this divestiture and absorption as a transaction under common control are based on“Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No.
21, issued on December 26, 2008) and the “Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ Guidance No. 10, issued on December 26, 2008).
- 10 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

4. Supplementary Information(1) Number of Stores
Number of stores
Store format / region

As of Feb. 28,
2015 (Note 3)

First six months of FY2/16
Closed,Increase
OpenedRebrandedetc.
/decrease4(2)2

As of Aug. 31,
2015

GLOBAL WORK178

LOWRYS FARM

158

3

10

(7)

6

164

niko and...

116

4

-

(1)

3

119

STUDIO CLIP

162

6

-

-

6

168

LEPSIM LOWRYS FARM

125

5

-

(2)

3

128

JEANASIS

84

1

5

(2)

4

88

RAGEBLUE

64

2

7

(8)

1

65

180

HEATHER

75

1

-

(6)

(5)

70

Others

285

12

(22)

(7)

(17)

268

1,247

38

-

(35)

3

1,250

Total (Adastria)
Others (Note 4)

3

-

-

(3)

(3)

-

1,250

38

-

(38)

-

1,250

Hong Kong

24

1

1

(1)

1

25

China

34

9

-

(5)

4

38

Taiwan

26

1

-

-

1

27

South Korea

12

5

-

-

5

17

Total (Japan)

Singapore

10

-

(1)

(9)

(10)

-

Total (Overseas)

106

16

-

(15)

1

107

Total (Group)

1,356

54

-

(53)

1

1,357

Notes: 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 the Company.
3. On March 1, 2015, an absorption-type merger was conducted between the Company, which is the surviving
company, and its subsidiaries POINT INC. and TRINITY ARTS INC., which were dissolved. Consequently, thenumber of stores at Adastria as of February 28, 2015 is the number of stores at these two subsidiaries.
4. The decrease in the number of stores closed, etc. for Others is the result of the sale of an affiliated company.

- 11 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2016 Fiscal Year

(2) Sales for Brands and Regions
Brand / region

First six months of FY2/16
Sales (million yen)
Composition (%)

YoY change (%)(Note 2)

GLOBAL WORK

17,111

17.6

15.9

LOWRYS FARM

12,438

12.8

4.6

niko and...

10,980

11.3

13.2

STUDIO CLIP

10,620

11.0

8.0

LEPSIM LOWRYS FARM

7,316

7.5

4.9

JEANASIS

5,843

6.0

18.7

RAGEBLUE

4,423

4.6

6.6

HEATHER

3,709

3.8

2.7

Others

18,22618.8

6.9

90,671

93.4

9.4

437

0.5

-

91,10993.9

9.3

Total (Adastria)
OthersTotal (Japan)
Hong Kong

3,553

3.7

18.3

China

961

1.0

73.4

Taiwan

780

0.8

18.8

South Korea

435

0.4

-

Singapore

192

0.2

(58.2)

Total (Overseas)

5,923

6.1

26.7

Total (Group)

97,032

100.0

10.2

Notes: 1. The number of stores is categorized by using brand operating divisions and geographic regions.
2. On March 1, 2015, an absorption-type merger was conducted between the Company, which is the surviving
company, and its subsidiaries POINT INC. and TRINITY ARTS INC., which were dissolved. Consequently, YoYchange on Adastria sales is based on sales of these two subsidiaries in the same period of the previous fiscal year.

(3) Sales for Merchandise Categories
Category

First six months of FY2/16
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

12,866

13.3

3.9

Lady’s apparel (bottoms, tops)

65,586

67.6

10.9

Others

18,57919.1

12.6

97,032

100.0

10.2

Total

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 theconvenience of readers who prefer an English translation.

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