Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending February 29, 2020
(Six Months Ended August 31, 2019)[Japanese GAAP]
September 30, 2019

Company name: Adastria Co., Ltd.
Listing: TSE 1st section
Stock code:
2685
URL: https://www.adastria.co.jp
Representative: Michio Fukuda, Chairman of the Board
Kazushi Sekimori,Contact:
Deputy Executive General Manager, General Headquarters of Management Tel: +81-3-5466-2060
Scheduled date of filing of Quarterly Report:
October 15, 2019
Scheduled date of payment of dividend:
October 21, 2019
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, 2019 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, 2020
(March 1, 2019 – August 31, 2019)(1) Consolidated results of operations (cumulative)

Net sales
Six months ended Aug. 31, 2019
Six months ended Aug. 31, 2018
Note: Comprehensive income

Operating profit

Million yen%%

Million yen%

Million yen

108,981
3.8
7,164
6,987
105,005(2.6)
529 (86.0)
600 (84.6)
Six months ended Aug. 31, 2019:
4,469 million yen (-%)
Six months ended Aug. 31, 2018:(744) million yen (-%)
Net income per share

Six months ended Aug. 31, 2019
Six months ended Aug. 31, 2018
Reference: EBITDA

Million yen(Percentages represent year-on-year changes)
Net income
Ordinary profit
attributable to ownersof the parent

Yen

%

4,410
(554)

-

Diluted net income per share
Yen

93.66
(11.79)Six months ended Aug. 31, 2019: 10,557 million yen (up 115.6%)
Six months ended Aug. 31, 2018:
4,895 million yen
EPS before goodwill amortization
Six months ended Aug. 31, 2019:95.53 yen (up 628.4%)
Six months ended Aug. 31, 2018:13.11 yen(*) For more details regarding definition, computational method and other matters of these indices, please refer to thesection “Explanation of Results of Operations” on page 2.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Equity ratio

Million yen%

As of Aug. 31, 2019
96,61556,056
58.0
As of Feb. 28, 201991,263
52,95958.0
Reference: Shareholders’ equity As of Aug. 31, 2019: 56,056 million yen
As of Feb. 28, 2019: 52,959 million yen
Note: Starting with the beginning of the first quarter of the current fiscal year, Adastria is applying “Partial Amendments to
Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28,
February 16, 2018). Figures as of Feb. 28, 2019 have been adjusted retroactively in accordance with these amendments.

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen

Fiscal year ended Feb. 28, 2019
20.00
Fiscal year ending Feb. 29, 2020
25.00
Fiscal year ending Feb. 29, 2020 (forecast)
Note: Revision to the most recently announced dividend forecast: None-

Year-end
Yen

30.00
25.00

Total
Yen

50.00
50.00

3. Consolidated Forecast for the Fiscal Year Ending February 29, 2020 (March 1, 2019 – February 29, 2020)
Net sales
Million yen

Operating profit%

Million yen%

Ordinary profit
Million yen%(Percentages represent year-on-year changes)
Net income attributable to Net income perowners of the parent
shareMillion yen%

Yen

Full year
225,000
1.0
10,00039.1
10,000
36.1
6,000
54.2
127.49Note: Revision to the most recently announced consolidated forecast: None
Reference: EBITDA
Fiscal year ending Feb. 29, 2020 (forecast): 16,520 million yen (up 7.9%)
EPS before goodwill amortization Fiscal year ending Feb. 29, 2020 (forecast):
130.04 yen (up 17.8%)

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): None
Newly added: -Excluded: -(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: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to the section “2. Quarterly Consolidated Financial Statements and Notes, (4) Notes to Quarterly
Consolidated Financial Statements, Changes in Accounting Policies” on page 9 for further information.

(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, 2019:
48,800,000 shares
As of Feb. 28, 2019:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of Aug. 31, 2019:
1,679,137 shares

As of Feb. 28, 2019:

1,736,973 shares

3) Average number of shares outstanding during the period
Six months ended Aug. 31, 2019:47,093,537 shares

Six months ended Aug. 31, 2018:

47,053,776 shares

Note 1: The current quarterly financial report is not subject to quarterly review procedures 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 assumptions judged to bereasonable. Actual results may differ significantly from these forecasts for a number of factors. Please refer to the section “1.
Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast andOther Forward-looking Statements” on page 3 regarding preconditions or other related matters for the forecast shown above.

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

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

6(3) Quarterly Consolidated Statement of Cash Flows

8(4) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Changes in Accounting Policies

9

Additional Information

9

3. Supplementary Information

10(1) Sales for Brands and Regions

10(2) Sales for Merchandise Categories

10(3) Number of Stores

11

- 1 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
Consolidated results(Million yen)First six months of FY2/19
First six months of FY2/20(Mar. 1, 2018 – Aug. 31, 2018) (Mar. 1, 2019 – Aug. 31, 2019)

Net sales

YoY change(Amount)

YoY change(%)

105,005

108,981

3,975

3.8

Operating profit

529

7,164

6,635

1252.6

Ordinary profit

600

6,987

6,387

1064.5

Net income attributableto owners of the parent

(554)

4,410

4,965

-

EBITDA

4,895

10,557

5,661

115.6

EPS before goodwill
amortization (Yen)

13.11

95.53

82.41

628.4

Consolidated net sales in the first half (March 1 – August 31, 2019) increased 3.8% year-on-year to 108,981
million yen, operating profit increased 1252.6% to 7,164 million yen, ordinary profit increased 1064.5% to 6,987
million yen, and net income attributable to owners of the parent was 4,410 million yen (net loss of 554 million
yen in the same period of the previous fiscal year).
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 115.6% to 10,557 million yen
and earnings per share (EPS) before goodwill amortization rose 628.4% to 95.53 yen. (*)
Sales in Japan were 5.1% higher than one year earlier. The main reasons were a solid recovery in the sales ofcore brands such as GLOBAL WORK, LOWRYS FARM that had difficulties in the previous fiscal year andgenerally strong sales of niko and …, BAYFLOW and other brands.
Operation of our “.st” e-commerce site has been suspended since August 8 due to problems with the switch to the
new system. However, the growth in sales at physical stores was able to cover the impact of the shortfall inturnover.
In other countries, sales in the wholesale and retailing businesses were steady in the United States. In Hong Kong
and China, sales were down following the closing of unprofitable stores in the previous fiscal year.
We opened 26 stores (including 1 overseas) and closed 24 stores (including 6 overseas), resulting in a total
network of 1,429 stores (including 80 overseas) at the end of second quarter of this fiscal year.
In terms of profitability, consistent provision of products on a “proper timing, pricing and volumes” basis has
enabled stable management of operations and tighter control of sales at reduced prices with the result that thediscounting ratio has greatly improved. As a result, the gross profit margin increased 2.3 percentage points fromone year earlier to 56.2%.
The ratio of selling, general and administrative (SG&A) expenses to sales decreased 3.8 percentage points to
49.6%, resulting in a 6.1 percentage point increase in the operating margin to 6.6%. SG&A expenses were 2,023
million yen less than one year earlier. One reason was a decrease in advertising expenses as e-commerce
promotion expenses were held down. The completion at the end of the previous fiscal year’s first half ofamortization of goodwill resulting from the consolidation of TRINITY ARTS (subsequently absorbed by
Adastria) also reduced SG&A expenses.
There were extraordinary losses of 49 million yen for the impairment of store assets.
(*) Since the fiscal year that ended on February 28, 2014, the amortization of goodwill, which is not a cash
expense, has created a large gap between changes in cash flows and changes in operating profit and all
subsequent levels of earnings. Furthermore, comparisons with foreign companies are difficult because ofdifferences in accounting standards of individual countries for recording goodwill amortization. As a result,
we disclose EBITDA and EPS before goodwill amortization as reference financial indicators.
- 2 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

EBITDA
Operating profit + Depreciation + Amortization of goodwill (SG&A expenses)
EPS before goodwill amortization(Net income attributable to owners of the parent + Amortization of goodwill (SG&A expenses and extraordinary
losses) + Impairment losses (goodwill)) / Average number of shares outstanding during the period(2) Explanation of Financial Position
1) Balance sheet position
Total assets increased 5,351 million yen from as of February 28, 2019 to 96,615 million yen as of August 31,
2019. Inventories decreased 726 million yen but there were increases of 2,923 million yen in cash and deposits,
2,055 million yen in other, net under property, plant and equipment, partly because of right-of-use assets
resulting from the application of IFRS 16 and 1,449 million yen in other (software in progress, etc.) underintangible assets.
Liabilities increased 2,254 million yen to 40,558 million yen. Electronically recorded obligations-operating
decreased 1,932 million yen but there were increases of 1,809 million yen in income taxes payable, 1,117 million
yen in notes and accounts payable-trade and 1,385 million yen in other under current liabilities, including leaseliabilities resulting from the application of IFRS 16.
Net assets increased 3,097 million yen to 56,056 million yen. This was mainly due to an increase in retained
earnings of 2,848 million yen.
2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of August 31, 2019 amounted to 21,575 million yen, or
2,927 million yen more than as of February 28, 2019.
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 8,246 million yen (compared with 2,516 million yen provided in
the same period of the previous fiscal year). The main positive factors include net income before income taxes of
6,933 million yen and depreciation of 3,444 million yen. Main negative factors include a decrease in accounts
payable-other of 1,438 million yen and income taxes paid of 1,183 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 3,042 million yen (compared with 5,326 million yen used in the same
period of the previous fiscal year). This was mainly due to the payments of 2,077 million yen for the purchase ofproperty, plant and equipment and 1,215 million yen for the purchase of intangible assets.
Cash flows from financing activities
Net cash used in financing activities totaled 2,225 million yen (compared with 888 million yen used in the same
period of the previous fiscal year). This was mainly due to cash dividends paid of 1,427 million yen andrepayments of lease obligations of 654 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There are no revisions to the consolidated forecast for the current fiscal year that was announced on April 4,
2019.

- 3 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Million yen)
Second quarter of FY2/20(As of Aug. 31, 2019)

FY2/19(As of Feb. 28, 2019)
AssetsCurrent assets
Cash and deposits

18,726

21,649Notes and accounts receivable-trade

9,780

10,388Inventories

17,592

16,865

Other

2,016

1,664

Allowance for doubtful accounts
Total current assets

(65)

(95)

48,05050,472

6,226

5,822

Non-current assets
Property, plant and equipment
Store interior equipment, net
Other, net

7,214

9,269

Total property, plant and equipment

13,44015,092Intangible assets
Goodwill

648

555

Other

5,241

6,690

Total intangible assets

5,889

7,245

828

681

Lease and guarantee deposits

16,947

16,741

Other

6,401

6,674

Investments and other assets
Investment securities

Allowance for doubtful accounts

(294)

(292)

Total investments and other assets

23,88223,804

43,213

46,142

91,26396,615

Notes and accounts payable-trade

9,267

10,385

Electronically recorded obligations-operating

9,635

7,702

Short-term loans payable

2,552

2,344

Accounts payable-other

9,703

9,362

Income taxes payable

1,376

3,185

Provision for bonuses

2,506

2,548

Provision for point card certificatesTotal non-current assets
Total assets
Liabilities
Current liabilities

1,084

1,060

Other provision

361

269

Other

340

1,726

36,82938,585

Total current liabilities
Non-current liabilities
Provision

314

210

Other

1,160

1,761

Total non-current liabilities

1,474

1,972

38,30340,558

Total liabilities- 4 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

(Million yen)
Second quarter of FY2/20(As of Aug. 31, 2019)

FY2/19(As of Feb. 28, 2019)
Net assets
Shareholders’ equity
Capital stock

2,660

2,660

Capital surplus

7,227

7,213

Retained earnings

47,46950,318Treasury shares(4,575)(4,371)

Total shareholders’ equity

52,781

55,820

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

(7)

(121)

(8)

(57)

Foreign currency translation adjustment

193

415

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

- 5 -

177

236

52,95956,056

91,26396,615

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 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 FY2/19(Mar. 1, 2018 – Aug. 31, 2018)(Million yen)First six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)

105,005

108,981Net sales
Cost of sales

48,35647,720Gross profit

56,64961,261

Selling, general and administrative expenses

56,11954,096529

7,164

Dividend income

1213House rent income

47-

Operating profit
Non-operating income

Gain on valuation of derivatives

-

91

Other

183

175

Total non-operating income

244

279

Interest expenses

18

67

Foreign exchange losses

52

377

Loss on valuation of derivatives

47-

Cost of lease revenue

44

-

Other

11

11

Total non-operating expenses

173

456

600

6,987

276

49

-

4

276

53

Non-operating expenses

Ordinary profit
Extraordinary losses
Impairment loss
Loss on sales of investment securities
Total extraordinary losses
Net income before income taxes

323

6,933

Income taxes-current

1,142

2,734

Income taxes-deferred

(263)

(211)

Total income taxes

878

2,522

Net income (loss)

(554)

4,410

Net income (loss) attributable to owners of the parent

(554)

4,410

- 6 -

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY2/19(Mar. 1, 2018 – Aug. 31, 2018)(Million yen)First six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)

Net income (loss)

(554)

4,410

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

(72)

(114)

107

(48)

Foreign currency translation adjustment

(224)

221

Total other comprehensive income

(189)

58

(744)

4,469

(744)

4,469

-

-

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable tonon-controlling interests- 7 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY2/19(Mar. 1, 2018 – Aug. 31, 2018)(Million yen)First six months of FY2/20(Mar. 1, 2019 – Aug. 31, 2019)

323

6,933

Depreciation

3,258

3,444

Impairment loss

276

49

Cash flows from operating activities
Net income before income taxes

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

1,172

87

(9)

28

Increase (decrease) in provision for bonuses

95

43

Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for loss on businessliquidation
Decrease (increase) in notes and accounts receivable-trade

122

(24)

(182)

-

(1,220)

(630)

197

670

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade

(538)

(798)

Increase (decrease) in accounts payable-other(170)(1,438)

Increase (decrease) in accrued consumption taxes

188

456

Other, net

(116)

658

Subtotal

3,398

9,481

Interest and dividend income received

13

16

Interest expenses paid

(18)

(67)

Income taxes paid

(877)

(1,183)

Net cash provided by (used in) operating activities

2,516

8,246

Purchase of property, plant and equipment(4,093)(2,077)Purchase of intangible assets(1,353)(1,215)

Cash flows from investing activities

Proceeds from sales of investment securities
Payments for lease and guarantee deposits

-

27

(484)

(385)

Proceeds from collection of lease and guarantee deposits

626

658

Other, net

(20)

(50)

(5,326)(3,042)

Increase (decrease) in short-term loans payable

(57)

(140)

Cash dividends paid

(715)

(1,427)

(1)

(2)

(114)

(654)

-

0

(888)

(2,225)

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

(49)

(50)

Net increase (decrease) in cash and cash equivalents(3,747)

2,927

Cash and cash equivalents at beginning of period

19,381

18,647

Cash and cash equivalents at end of period

15,633

21,575- 8 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Changes in Accounting Policies
Application of IFRS 16 “Leases”
Starting with the first quarter of the current fiscal year, some consolidated subsidiaries are using IFRS 16. To
begin applying this standard, Adastria is using the approved transitional treatment of recognizing the cumulative
effect of applying this standard on the first day that this standard was applied. Consequently, there were
adjustments to retained earnings, right-of-use assets and lease liabilities at the beginning of the first quarter. The
effect of this change on profit or loss in the first half of the current fiscal year is insignificant.
Additional Information
Application of the “Partial Amendments to Accounting Standard for Tax Effect Accounting,” etc.
Starting with the beginning of the first quarter of the current fiscal year, Adastria is applying “Partial
Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ No. 28, February 16, 2018) and otherrelated pronouncements. Accordingly, deferred tax assets and deferred tax liabilities have been presented in theinvestments and other assets section and the non-current liabilities section of the balance sheet, respectively.

- 9 -Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

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

First six months of FY2/20
Sales (million yen)

YoY change (%)

Composition (%)

GLOBAL WORK

19,887

18.3

6.2

niko and ...

15,731

14.4

4.0

LOWRYS FARM

11,91911.0

15.7

STUDIO CLIP

11,475

10.5

(3.4)

LEPSIM

7,127

6.5

(0.7)

JEANASIS

5,811

5.3

1.8

BAYFLOW

4,726

4.4

16.7

RAGEBLUE

3,531

3.2

(2.1)

Others (Note 3)

15,353

14.1

17.7

95,564

87.7

6.6

Total (Adastria)
BUZZWIT Co., Ltd. (Note 3)

2,315

2.1

(45.0)ELEMENT RULE Co., Ltd.

4,892

4.5

24.4

17

0.0

969.5

102,789

94.3

5.1

1,687

1.5

(35.5)

China

273

0.3

(65.6)

Taiwan

1,164

1.1

1.3

592

0.5

0.3

2,474

2.3

18.8

6,191

5.7

(14.4)

Other consolidated subsidiaries
Total (Japan)
Hong Kong

South Korea
USA
Total (Overseas)
Total (Group)

Notes:

108,981100.0
1. The number of stores is categorized by using brand operating divisions and geographic regions.

3.8

2. The above figures are sales to external customers and do not include internal sales between consolidated
subsidiaries.
3. In August 2018, three business units including the PAGEBOY business unit of BUZZWIT Co., Ltd. (formerly
ALICIA CO., LTD.) were transferred to Adastria. As a result, the rate of YoY change was calculated based on thesales of the three business units prior to the transfer, which were included in BUZZWIT sales.

(2) Sales for Merchandise Categories
Category

First six months of FY2/20
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

15,105

13.9

6.4

Lady’s apparel (bottoms, tops)

72,23666.3

3.6

Others

21,63919.8

2.5

Notes:

Total
108,981100.0
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.

- 10 -

3.8

Adastria Co., Ltd. (2685) Summary of 2Q Financial Results for February 2020 Fiscal Year

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

First six months of FY2/20

As of Feb.
28, 2019

OpenedAs of Aug.
31, 2019

Increase/decrease

ClosedChangedGLOBAL WORK

213

2

-

(2)

-

213

niko and ...

139

5

-

(1)

4

143

LOWRYS FARM

139

-

-

(2)

(2)

137

STUDIO CLIP

190

3

-

(1)

2

192

LEPSIM

132

1

-

-

1

133

JEANASIS

73

-

-

-

-

73

BAYFLOW

49

6

-

-

6

55

RAGEBLUE

58

-

-

(1)

(1)

57

Others

269

2

-

(9)

(7)

262

1,262

19

-

(16)

3

1,265

BUZZWIT Co., Ltd.

Total (Adastria)

5

1

-

-

1

6

ELEMENT RULE Co., Ltd.

75

4

-

(2)

2

77

Other consolidated subsidiaries

-

1

-

-

1

1

1,342

25

-

(18)

7

1,349

Hong Kong

20

-

-

(2)

(2)

18

China

10

-

-

(3)

(3)

7

Taiwan

34

1

-

(1)

-

34

South Korea

12

-

-

-

-

12

USA

9

-

-

-

-

9

Total (Overseas)

85

1

-

(6)

(5)

80

Total (Group)

1,427

26

-

(24)

2

1,429

Total (Japan)

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 Adastria.

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.

- 11 -