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

Summary of Interim Financial Resultsfor the Fiscal Year Ending February 28, 2009
October 3, 2008

Company name: POINT INC.

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

Stock code:
Representative:
Contact:

2685
Toshiaki Ishii, President and Representative Director
Tsuyoshi Matsuda,
Director, Corporate Officer, General Manager of Administration Division
Scheduled date of filing of Semiannual Report: November 21, 2008
Scheduled date of payment of dividend:
October 27, 2008

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

1. Consolidated Financial Results for the First Half ended August 31, 2008 (March 1, 2008 – August 31, 2008)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Net sales

Operating income

Million yen%

38,42532,07773,941

19.8
20.8
-

First half ended Aug. 2008
First half ended Aug. 2007
Fiscal year ended Feb. 2008

Million yen

5,980
5,303
12,960Ordinary income

Net income%

Million yen%

12.8
7.7
-6,078
5,348
13,030

13.6
8.4
-

3,350
3,0657,488

9.3
12.7
-121.49298.874Aug. 2007:

0Feb. 2008:(36)

Net income per share

Diluted net income per share

Yen

Yen

First half ended Aug. 2008
135.35First half ended Aug. 2007
121.53Fiscal year ended Feb. 2008
298.92
Reference: Equity in earnings of affiliates (million yen) Aug. 2008:

Million yen%(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of Aug. 31, 2008
39,731
As of Aug. 31, 2007
34,043As of Feb. 29, 2008
37,712
Reference: Shareholders’ equity (million yen)Aug. 2008:(3) Consolidated cash flow position
Cash flows fromoperating activities

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 half ended Aug. 2008
First half ended Aug. 2007
Fiscal year ended Feb. 2008

24,612
21,751
22,34924,473

2,320
582
7,943

61.6
63.8
59.1
21,717

Aug. 2007:(1,116)(5,044)(6,411)

988.56860.55900.9522,304

Feb. 2008:(1,251)(1,409)(4,686)

13,808
11,141
13,8492. Dividends
Dividend per share(Record date)

InterimYearend

AnnualYen

Yen

Yen

30.00
40.00

50.00

80.00

Fiscal year ended Feb. 2008
Fiscal year ending Feb. 2009
Fiscal year ending Feb. 2009 (forecast)

90.00

50.00

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2009 (March 1, 2008 – February 28, 2009)(Percentages represent year-on-year changes)
Net sales
Full year

Operating income

Ordinary income

Million yen%

Million yen%

Million yen

86,20016.6

14,80014.2

14,900- 1 -%

14.3

Net income
Million yen

8,300

Net income per share%

10.8

Yen335.26

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

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scopeof consolidation): None
(2) Changes in accounting principles, procedures and presentation methods for preparation of interim consolidated
financial statements
1) Changes caused by revision of accounting standards: None
2) Other changes: None

(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at end of period (including treasury stock)
Aug. 2008:

25,990,720 sharesAug. 2007:

25,990,720 sharesFeb. 2008:

25,990,720 sharesAug. 2007:

753,494 sharesFeb. 2008:

1,233,884 shares

2) Number of treasury stock at end of period
Aug. 2008:

1,233,890 shares(For reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the First Half ended August 31, 2008 (March 1, 2008 – August 31, 2008)(1) Non-consolidated results of operations(Percentages represent year-on-year changes)

Net sales

Operating income

Million yen%

38,00331,68373,121

19.9
20.6
-

First half ended Aug. 2008
First half ended Aug. 2007
Fiscal year ended Feb. 2008

Million yen

5,881
5,194
12,716

Ordinary income%

Million yen

%

13.2
6.8
-

6,035
5,278
12,86514.3
7.4-

Net income
Million yen

%

3,350
3,034
7,408

10.4
11.4
-

Net income per share
YenFirst half ended Aug. 2008
First half ended Aug. 2007
Fiscal year ended Feb. 2008

135.32120.32295.75(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yenMillion yen%

Yen

As of Aug. 31, 2008
39,241
As of Aug. 31, 2007
33,695
As of Feb. 29, 2008
37,303
Reference: Shareholders’ equity (million yen)

24,25321,511
22,07624,197

Aug. 2008:

Aug. 2007:

61.7
63.7
59.1
21,477977.42851.04889.92
22,031Feb. 2008:

2. Non-consolidated Forecast for the Fiscal Year Ending February 28, 2009 (March 1, 2008 – February 28, 2009)(Percentages represent year-on-year changes)
Net sales
Full year

Operating income

Ordinary income

Million yen%

Million yen%

Million yen

85,00016.2

14,75016.0

14,850%15.4

Net income
Million yen

8,300

Net income per share%

12.0

Yen335.26* Cautionary statement with respect to forward-looking statements
Point Inc. has not revised its forecast for the full year of the fiscal year ending February 28, 2009 (released on April 3, 2008).
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 “1. Results ofOperations, (1) Analysis of Results of Operations” on page 3 for further information concerning these forecasts.

- 2 -POINT INC. (2685) Summary of Interim Financial Results for February 2009 Fiscal Year

1. Results of Operations(1) Analysis of Results of Operations
1) Results of operations for the current interim period
The Japanese economy appeared to move in the direction of a recession in the first half of the current fiscal year underreview as growing turmoil in global financial markets triggered by the subprime mortgage crisis, and a slowdown in theUS economy, had a negative impact on exports and production, and higher raw materials prices weighed on corporate
profits.
In the casual wear market in which our group operates, most companies saw weak sales due to poor weather in
April-June, and more defensive spending by consumers in the face of higher gasoline and food prices.
In this environment, our interim consolidated results were as follows.
Net sales increased 19.8% year-on-year.
Domestic existing-store sales achieved 99.7% of the previous year’s level, and total sales for each brand increased
owing to contributions from new stores.
The following brands showed particularly high sales growth: JEANASIS, HEATHER, APART BY LOWRYS, andLEPSIM LOWRYS FARM. Sales from these four brands, which accounted for 20.5% of total sales in the interim
period of the previous fiscal year, rose sharply to 26.5% of total sales in the current interim period. Also, we
successfully launched our new brand “ INMERCANTO” opening three new stores during this interim period.
We aggressively opened many new stores in the interim period. We opened 53 new stores (two of them being brandchanges) including seven e-commerce websites, and closed 12 (four of them being brand changes), expanding ourdomestic store network to 497 stores at the end of the interim period.
Overseas, POINT HOLDING Co., LTD, established to sell merchandise in Hong Kong, opened its first two stores inMarch 2008 and developed a network of five stores by the end of the interim period.
POINT TW INC., our subsidiary in Taiwan, opened its first JEANASIS store in Taipei and second one in Kao-Hsiung,bringing the store network in Taiwan to 15 stores at the end of the interim period.
Regarding profits, the gross profit margin declined slightly, down 1.3 points year-on-year to 60.4%, partly due todiminishing benefits from merchandise valuations, which contributed to a higher margin in the previous interim period.
Still, the gross profit margin was kept high.
SG&A expenses increased 18.8% year-on-year to 17,225 million yen, in line with plan, and the SG&A-to-sales ratio
declined 0.4 points year-on-year to 44.8%.
We booked extraordinary losses of 386 million yen: losses from the cancellation of rental contracts for closing stores,
disposal costs for fixed assets, and impairment losses for four stores.
We increased sales and profits as a result of the above activities. Net sales in the interim period increased 19.8%
year-on-year to 38,425 million yen, operating income increased 12.8% to 5,980 million yen, ordinary income increased
13.6% to 6,078 million yen, and net income increased 9.3% to 3,350 million yen.

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