POINT INC. (2685) Summary of 1Q Financial Results for February 2009 Fiscal Year

Summary of Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2009
June 16, 2008

Company name: POINT INC.
Stock code:
Representative:
Contact:

2685
Toshiaki Ishii, President and Representative Director
Tsuyoshi Matsuda,
Director, Corporate Officer, General Manager of Administration Division

Listing: TSE 1st section
URL: http://www.point.co.jp

Tel: +81-3-3243-6011(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter (March 1, 2008 – May 31, 2008)(1) Consolidated results of operations
Net sales

Operating income

Million yen%

18,80015,96573,941

17.8
25.0
-

First quarter ended May 2008
First quarter ended May 2007
Fiscal year ended Feb. 2008

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

Million yen

3,323
3,383
12,960%Million yen

%

(1.8)
14.2
-

3,389
3,413
13,030

(0.7)
15.2
-

Net income per share

Diluted net income per share

Yen

Yen

First quarter ended May 2008
First quarter ended May 2007
Fiscal year ended Feb. 2008

72.85
78.32
298.92Million yen

1,803
1,974
7,488

%

(8.7)
20.8
-

78.27
298.87(2) Consolidated financial position

As of May 31, 2008
As of May 31, 2007
As of Feb. 29, 2008

Total assets

Net assets

Equity ratio

Million yen

Million yen%

36,75632,09437,712(3) Consolidated cash flow position
Cash flows fromoperating activities

23,197
20,64622,349

Yen

62.8
64.2
59.1

931.82816.90900.95

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of the period

Million yen

Million yen

Million yen

Million yen

First quarter ended May 2008
First quarter ended May 2007
Fiscal year ended Feb. 2008

Net assets per share(2,061)(2,652)
7,943

(726)
(668)
(6,411)(1,200)(1,363)(4,686)

9,853
12,322
13,8492. Consolidated Forecast for the Fiscal Year Ending February 28, 2009 (March 1, 2008 – February 28, 2009)
Point Inc. maintains its consolidated forecast for the first half and fiscal year ending February 28, 2009 (released on April 3, 2008).

3. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of
consolidation): None
(2) Adoption of the simplified method for accounting: Yes(3) Changes to accounting methods in the most recent consolidated fiscal year: None
Note: Please refer to “Qualitative Information and Financial Statements, 3. Others” on page 2 for further information.
* 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.

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Qualitative Information and Financial Statements
1. Qualitative information regarding consolidated results of operations
Below is a summary of first quarter (March-May 2008) results.
Net sales increased 17.8% year-on-year.
Despite an impact on spring and early summer apparel sales from rainy and cold days from April, sales at existing
stores in Japan were 98.7% of the previous year’s level, exceeding our 98.3% plan for the first half of the fiscal year.
Sales increased year-on-year for all brands due in part to a contribution from newly opened stores. The following
brands showed particularly high domestic sales growth: LEPSIM LOWRYS FARM, APART BY LOWRYS,JEANASIS, and HEATHER.
Our newly launched brand INMERCANTO took off smoothly.
We aggressively opened 35 new stores (including five e-commerce websites) in the first quarter, raising our domestic
store network to 491 stores (including 17 e-commerce websites) at the end of the quarter.
Overseas, we opened three stores in Hong Kong for the first time: two LOWRYS FARM stores and one JEANASIS
store in March. In Taiwan, we opened the first two JEANASIS stores in March. As a result, we had 18 overseas storesat the end of the first quarter.
Regarding profits, the gross profit margin in the first quarter declined 2.6 points year-on-year to 63.2%, partly due tonegligible effect from merchandise valuations, that benefited gross profit in the previous fiscal year.
SG&A expenses increased 20.2% year-on-year, generally in line with plan, as we increased new graduate hires
compared to the last year in preparation for future growth.
As for extraordinary losses, we booked losses from the cancellation cost of rental contracts and disposal cost of fixed
assets for stores planned for exit or renovation, and impairment losses for nine stores etc.
As a result, net sales in the first quarter increased 17.8% year-on-year to 18,800 million yen, operating income declined
1.8% to 3,323 million yen, ordinary income declined 0.7% to 3,389 million yen, and net income declined 8.7% to 1,803
million yen.
2. Qualitative information regarding consolidated financial position
Assets totaled 36,756 million yen as of May 31, 2008, 956 million yen lower than as of February 29, 2008. Net assets
rose 848 million yen to 23,197 million yen. As a result, equity ratio increased to 62.8% from 59.1% at the end of theprevious fiscal year.
Cash flow position
Net cash used in operating activities totaled 2,061 million yen. The main factors include income before income taxes of
3,123 million yen, an increase in accounts receivable of 1,801 million yen, an increase in inventories of 260 million
yen, a decrease in accounts payable of 1,762 million yen, and income taxes paid of 2,295 million yen.
Net cash used in investing activities totaled 726 million yen. This was mainly due to payment of 449 million yen forlease deposits mostly for new stores.
Net cash used in financing activities totaled 1,200 million yen mainly due to cash dividends paid of 1,191 million yen.
As a result, cash and cash equivalents as of May 31, 2008 amounted to 9,853 million yen, or 3,996 million yen less thanas of February 29, 2008.
3. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation)
No reportable information.
(2) Adoption of the simplified method for accounting
We have adopted the simplified method for booking allowance reserves and income taxes.
(3) Changes to accounting methods in the most recent consolidated fiscal year
No reportable information.

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