Summary of Consolidated Financial Results for the Fiscal Year Ended February 29, 2016
[Japanese GAAP]
April 4, 2016

Company name: Adastria Co., Ltd.
Listing: TSE 1st section
Stock code:
2685
URL: http://www.adastria.co.jp
Representative: Michio Fukuda, Representative Director, Chairman & CEO
Contact:
Mika Takano, General Manager of Corporate Planning Department
Tel: +81-3-6895-6000
Scheduled date of Annual General Meeting of Shareholders:
May 26, 2016
Scheduled date of payment of dividend:
May 11, 2016
Scheduled date of filing of Annual Securities Report:
May 27, 2016
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for investors)
Note: The original disclosure in Japanese was released on April 4, 2016 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended February 29, 2016 (March 1, 2015 – February 29, 2016)(1) Consolidated results of operations(Percentages shown for net sales and incomes represent year-on-year changes)
Operating income
Ordinary income
Net income

Net sales
Million yen

Fiscal year ended Feb. 29, 2016
Fiscal year ended Feb. 28, 2015
Note: Comprehensive income%

Million yen%

Million yen%

Million yen

200,038
8.4
16,004167.6
16,185 150.8
184,588
20.4
5,981
3.8
6,452
7.0
Fiscal year ended Feb. 29, 2016:
10,530 million yen (up 277.8%)
Fiscal year ended Feb. 28, 2015:
2,787 million yen (- %)Net income per
Diluted net
Ratio of ordinary
ROE
share
income per shareincome to total assets
Yen

Fiscal year ended Feb. 29, 2016
Fiscal year ended Feb. 28, 2015

Yen

188.31
10.37

%

10.37

%

9,122
503

-

Ratio of operating
income to net sales

%

%

18.3
1.1

18.6
7.9

8.0
3.2

Reference: Equity in earnings of affiliates
EBITDA

Fiscal year ended Feb. 29, 2016:
Fiscal year ended Feb. 28, 2015:
Fiscal year ended Feb. 29, 2016:
24,612 million yen (up 56.4%)
Fiscal year ended Feb. 28, 2015:
15,732 million yen (up 13.5%)
EPS before goodwill amortization
Fiscal year ended Feb. 29, 2016:
233.99 yen (up 230.2%)
Fiscal year ended Feb. 28, 2015:70.85 yen (down 9.6%)(*) For more details regarding definition, computational method and other matters of these indices, please refer to the section“Analysis of Results of Operations” on page 2.
Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Net income per share and diluted net income per share havebeen calculated as if this stock split had taken place at the beginning of FY2/15.

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of Feb. 29, 2016
As of Feb. 28, 2015

90,454
83,742

Net assets per share
Yen

53,282
46,23358.9
55.2

1,106.45
952.02

Reference: Shareholders’ equity
As of Feb. 29, 2016:
53,282 million yen
As of Feb. 28, 2015:
46,233 million yen
Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Net assets per share has been calculated as if this stock split
had taken place at the beginning of FY2/15.

(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

Fiscal year ended Feb. 29, 2016
Fiscal year ended Feb. 28, 2015

22,054
12,112(4,551)(10,421)(5,683)(2,524)

19,4527,667

2. Dividends
Dividend per share
1Q-end 2Q-end 3Q-end Year-end

Total

Total
dividends

Yen

Yen

Yen

Million yen

45.00
90.00
40.00

75.00
130.00
75.00

1,821
3,138

Fiscal year ended Feb. 28, 2015
Fiscal year ended Feb. 29, 2016
Fiscal year ending Feb. 28, 2017 (forecast)

Yen

-

30.00
40.00
35.00

Yen

-

Dividend
Dividend on
payout ratio
equity(consolidated) (consolidated)
%

%

361.5
34.5
36.1

4.0
6.3

Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Year-end dividends per share for the fiscal years ended
February 2016 and earlier are the actual amounts before the stock split.

3. Consolidated Forecast for the Fiscal Year Ending February 28, 2017 (March 1, 2016 – February 28, 2017)
Net salesFirst half
Full year

Operating income

Ordinary income

Million yen%

Million yen

Million yen

99,700208,900

2.7
4.4

8,100
17,000

%

(0.4)
6.2

8,200
17,300

%

(1.5)
6.9

(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen

4,500
10,000

%

8.3
9.6

Yen

93.45
207.66

Reference: EBITDA
Fiscal year ending Feb. 28, 2017 (forecast):
24,900 million yen (up 1.2%)
EPS before goodwill amortization
Fiscal year ending Feb. 28, 2017 (forecast):
253.34 yen (up 8.3%)
Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. The consolidated net income per share forecast has been
calculated based on the number of shares outstanding (excluding treasury shares) after the stock split.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scopeof consolidation): None
(2) 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

(3) Number of outstanding shares (common stock)1) Number of shares outstanding at end of period (including treasury shares)
As of Feb. 29, 2016:
48,800,000 shares
As of Feb. 28, 2015:
2) Number of treasury shares at end of period
As of Feb. 29, 2016:
643,396 shares
As of Feb. 28, 2015:
3) Average number of shares outstanding during the period
Fiscal year ended Feb. 29, 2016:
48,443,869 sharesFiscal year ended Feb. 28, 2015:

48,800,000 shares
235,976 shares
48,564,157 shares

Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Number of outstanding shares (common stock) has
been calculated as if this stock split had taken place at the beginning of FY2/15.

Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 29, 2016
(March 1, 2015 – February 29, 2016)(1) Non-consolidated results of operations
Net sales
Million yen

Fiscal year ended Feb. 29, 2016
Fiscal year ended Feb. 28, 2015

187,917
3,811%(93.4)

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

Million yen

Million yen%

15,367923(82.4)

15,461
1,308

Net income per share

Diluted net income per share

Yen

Yen

Fiscal year ended Feb. 29, 2016
Fiscal year ended Feb. 28, 2015

172.19(16.01)%Million yen(76.1)

%

8,341
(777)

-

-

Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Net income per share and diluted net income per share havebeen calculated as if this stock split had taken place at the beginning of FY2/15.
Note: The Company conducted an absorption-type merger between consolidated subsidiaries on March 1, 2015.

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Million yen

Million yen%

As of Feb. 29, 2016
As of Feb. 28, 201585,296
46,71250,72544,314

Net assets per share
Yen

59.5
94.9

1,053.34
912.50

Reference: Shareholders’ equity
As of Feb. 29, 2016:
50,725 million yen
As of Feb. 28, 2015:
44,314 million yen
Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. Net assets per share has been calculated as if this stock split
had taken place at the beginning of FY2/15.
Note: The Company conducted an absorption-type merger between consolidated subsidiaries on March 1, 2015.

2. Non-consolidated Forecast for the Fiscal Year Ending February 28, 2017 (March 1, 2016 – February 28, 2017)
Net salesFirst half
Full year

Operating income

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

Million yen

Million yen

Million yen%

Million yen

94,500196,700

4.2
4.7

8,000
16,400

%

1.2
6.7

8,000
16,300

%

(2.8)
5.4

4,100
9,200

%

Yen

(39.2)
10.3

85.14
191.04

Note: The Company conducted a 2-for-1 common stock split on March 1, 2016. The non-consolidated net income per share forecast has
been calculated based on the number of shares outstanding (excluding treasury shares) after the stock split.

Note 1: Indication of audit procedure implementation status
The current financial report is exempted from audit procedures based on the Financial Instruments and Exchange Act. At the time of
disclosure, the audit procedures for the 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. These statements are not promises by the Company regarding future performance. Actual results may differ significantly
from these forecasts for a number of factors. Please refer to the section “Analysis of Results of Operations” on page 2 regarding
preconditions or other related matters for the forecast shown above.

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

Contents of Attachments
1. Analysis of Results of Operations and Financial Condition

2(1) Analysis of Results of Operations

2(2) Analysis of Financial Condition

6(3) Basic Policy on Profit Distribution, and Dividend Plans for the Current and Next Fiscal Years7

2. Corporate Group7

3. Management Policies

10(1) Basic Management Policy

10(2) Performance Targets

10(3) Medium- to Long-term Business Strategy

10(4) Challenges

11

4. Basic Approach for the Selection of Accounting Standards

12

5. Consolidated Financial Statements

13(1) Consolidated Balance Sheet

13(2) Consolidated Statements of Income and Comprehensive Income15(3) Consolidated Statement of Changes in Equity

17(4) Consolidated Statement of Cash Flows

19(5) Notes to Consolidated Financial Statements

20

Going Concern Assumption

20

Segment and Other Information

20

Per Share Information

22

Subsequent Events

23

6. Other Information

24(1) Changes in Directors

24

- 1 -

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

1. Analysis of Results of Operations and Financial Condition(1) Analysis of Results of Operations
1) Results of operations for the current fiscal year
During the past fiscal year (March 1, 2015 to February 29, 2016), the Japanese economy continued to recoverslowly backed by higher corporate earnings and improved employment picture benefiting from the Japanese
government’s economic stimulus and monetary measures. However, slowing economic growth in China, emerging
Asian countries and resource-producing countries made the outlook remained uncertain tarnished by worries about
its impact on Japan’s economy.
Sales in Japan’s casual wear market, which is the business category for the main brands of Adastria Co., Ltd.
(hereafter “the Company”), were strong overall due to solid consumer spending, although warm winter and otherfactors gave somewhat difficulties on the sales of winter apparel.
An absorption-type merger was conducted on March 1, 2015 between the Company (then Adastria Holdings Co.,
Ltd.) as the surviving company, and its subsidiaries POINT INC. and TRINITY ARTS INC as the absorbed
companies. The Company changed its name to Adastria Co., Ltd. on June 1, 2015.
In addition, the Company conducted an absorption-type company split on September 1, 2015. The product planningand production control operations for apparel and other products of consolidated subsidiary N9&PG Co., Ltd.
(currently Adastria Logistics Co., Ltd.) were separated and transferred to the Company.
The original plan was for the holding-company structure to achieve integrated strengths as a corporate group while
respecting the corporate culture of each group company. However, we reached the conclusion that we need torespond quickly and accurately to the dynamic changes taking place in our business climate. Consequently, we
decided to reorganize the Group to aim for more efficient operations and faster decision making. Our goals are more
growth in corporate value and fully utilizing the benefits of our new organizational structure.
Consolidated sales were 8.4% higher than one year earlier. The strengthened product development capability
through the expansion of internal production and the growth in e-commerce website sales are the major factors. The
GLOBAL WORK, niko and... and JEANASIS brands ,among others recorded strong growth.
Regarding the store network, we opened 93 stores (including 29 overseas), and closed 125 (including 31 overseas),
resulting in a total network of 1,324 stores (including 104 overseas) at the end of February 2016.
The gross profit margin improved by 1.1 percentage point from one year earlier to 56.6%. The increase in the cost of
sales caused by the weaker yen was more than offset by a decrease in price discount losses due to well managed
control of selling prices.
The ratio of selling, general and administrative (SG&A) expenses to sales decreased 3.7 percentage points from one
year earlier to 48.6% and the operating margin increased 4.8 percentage points to 8.0%. The SG&A expense control
was attained through the focusing efforts on optimizing expenses. For example, expenses for TV commercials wererestrained in accordance with the improved brand recognition.
There were extraordinary losses of 644 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 increased 8.4% year-on-year to 200,038 million yen, operating income increased
167.6% to 16,004 million yen, ordinary income increased 150.8% to 16,185 million yen, and net income was 9,122
million yen compared with 503 million yen in the previous fiscal year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 56.4% to 24,612 million yen andearnings per share (EPS), before goodwill amortization, rose 230.2% to 233.99 yen. (*)(*) Amortization of goodwill that mainly resulted from the consolidation of TRINITY ARTS INC. (subsequently
absorbed by the Company) has caused large declines in operating income and all subsequent categories of
profits since the fiscal year that ended on February 28, 2014. Since goodwill amortization is not a cash expense,
this 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 differences in- 2 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2016 Fiscal Yearaccounting 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(Number of stores)
Number of stores
Store format / region

As of Feb. 28,
2015 (Note 3)

OpenedFY2/16
Closed,Rebrandedetc.
(2)Increase/decrease6

As of Feb. 29,
2016

GLOBAL WORK

178

8

LOWRYS FARM

158

6

10

(17)

(1)

157

niko and...

116

8

-

(1)

7

123

STUDIO CLIP

162

11

-

(2)

9

171

LEPSIM LOWRYS FARM

125

8

-

(3)

5

130

JEANASIS

84

1

5

(7)

(1)

83

RAGEBLUE

64

3

7

(15)

(5)

59

184

HEATHER

75

2

-

(10)

(8)

67

Others

285

17

(22)

(34)

(39)

246

1,247

64

-

(91)

(27)

1,220

Total (Adastria)
Others (Note 4)

3

-

-

(3)

(3)

-

1,250

64

-

(94)

(30)

1,220

Hong Kong

24

5

1

(3)

3

27

China

34

17

-

(11)

6

40

Taiwan

26

2

-

(1)

1

27

South Korea

12

5

-

(7)

(2)

10

10

-

(1)

(9)

(10)

-

106

29

-

(31)

(2)

104

Total (Group)
1,356
93
(125)
(32)
Notes: 1. The number of stores is categorized by using brand operating divisions and geographic regions.

1,324

Total (Japan)

Singapore
Total (Overseas)

2. The number of stores includes e-commerce websites of other companies and e-commerce websites of Adastria.
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, the number of storesat 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.

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

(Sales for brands and regions)
Brand / region

FY2/16
Sales (million yen)

YoY change (%)(Note 2)Composition (%)

GLOBAL WORK

36,14518.1

19.7

LOWRYS FARM

25,66912.8

2.3

niko and...

22,824

11.4

11.3

STUDIO CLIP

20,540

10.3

4.3

LEPSIM LOWRYS FARM

15,0837.5

7.7

JEANASIS

12,547

6.3

15.2

RAGEBLUE

9,436

4.7

1.2

HEATHER

7,406

3.7

(0.6)

OthersTotal (Adastria)

37,57718.8

5.6

187,231

93.6

8.4

438

0.2

(58.4)

OthersTotal (Japan)

187,669

93.8

8.0

Hong Kong

7,732

3.9

15.4

China

1,989

1.0

46.3

Taiwan

1,591

0.8

6.5

South Korea

870

0.4

229.7

Singapore

184

0.1

(81.3)

12,368

6.2

14.5

Total (Overseas)
Total (Group)

100.0
200,038
Notes: 1. The number of stores is categorized by using brand operating divisions and geographic regions.

8.4

2. On March 1, 2015, an absorption-type merger was conducted between Adastria, which is the surviving company, andits subsidiaries POINT INC. and TRINITY ARTS INC., which were dissolved. Consequently, YoY change on Adastria
sales is based on sales of these two subsidiaries in the same period of the previous fiscal year.
3. The above figures are sales to external customers and do not include internal sales between consolidated subsidiaries.

(Sales for merchandise categories)
Category

FY2/16
Sales (million yen)

Composition (%)

YoY change (%)

Men’s apparel (bottoms, tops)

28,622

14.3

10.5

Lady’s apparel (bottoms, tops)

130,908

65.4

7.7

Others40,506

20.3

9.1

Total
200,038
100.0
Notes: 1. The others category includes additions to the provision for point card certificates and other items.

8.4

2. The above figures are sales to external customers and do not include internal sales between consolidated subsidiaries.

2) Outlook for the fiscal year ending on February 28, 2017
Earnings at Japanese companies continue to recover slowly but there are also concerns about the outlook because of
economic downturns in emerging countries and the impact of the yen’s strength on industries with substantial
exports. The operating environment is challenging due to numerous ongoing trends that include Japan’s aging
population and falling number of children, the increasing diversity of lifestyles, and the rapid advance of
globalization. In addition, higher prices of household necessities and the consumption tax hike are holding down
real wages in Japan, resulting in sluggish consumer spending. For these reasons, we expect the business climate toremain challenging.
The Company attained most of the numerical targets of the ACE18 (three-year medium-term management plan) in
its first year, which ended in February 2016. During the fiscal year ending in February 2017, we will continue ouractions toward our strategic objectives in ACE18, with some fine tuning in these objectives reflecting changes of theCompany and the business climate. One goal is to make the core brands, namely GLOBAL WORK and niko and...,- 4 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2016 Fiscal Yeareven more powerful in order to establish them as brands that can succeed as a global brands. Other brands will also
clearly position itself and perform procurement, sales and investment activities that reflect the characteristics ofeach brand. For our retail SPA (Specialty store retailer of Private label Apparel) operations, we plan to increase
efficiency by reexamining the planning, production and sales processes, all of which originate from information
derived from our stores. We keep working hard aiming to improved product quality, cost cutting and shorter leadtimes.
For the fiscal year ending on February 28, 2017, we forecast a 4.4% increase in consolidated net sales to 208.9
billion yen, a 5.8% increase in gross profit to 119.8 billion yen, a 6.2% increase in operating income to 17 billion
yen, a 6.9% increase in ordinary income to 17.3 billion yen and a 9.6% increase in net income to 10 billion yen.
This forecast assumes that existing-store sales will increase 3.0%, 66 stores will be opened (including 18 overseas),and 35 stores will be closed (including 6 overseas).
The planned number of stores for major brands and regions of the Adastria Group is as follows.
Brand / region

Number of storesat end of period

Brand / region

FY2/16

Number of stores at
end of period
FY2/17 (Plan)

GLOBAL WORK184

GLOBAL WORK194

LOWRYS FARM

157

LOWRYS FARM

154

niko and...

123

niko and...

128

STUDIO CLIP

171

STUDIO CLIP

177

LEPSIM LOWRYS FARM

130

LEPSIM133

JEANASIS

83

JEANASIS79

RAGEBLUE

59

RAGEBLUE

57

HEATHER

67

HEATHER

75

Others246

Others242

Total (Adastria)

1,220

Total (Adastria)

1,239

Total (Japan)

1,220

Total (Japan)

1,239

Hong Kong

27

Hong Kong

28

China

40

China

49

Taiwan27

Taiwan30

South Korea

10South Korea

9

Total (Overseas)

104

Total (Overseas)

116

Total (Group)

1,324

Total (Group)

1,355

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.
3. The brand name of LEPSIM LOWRYS FARM has changed to LEPSIM in the fiscal year ending February 28, 2017.

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

(2) Analysis of Financial Condition
1) Balance sheet position
AssetsCurrent assets increased 10,976 million yen from as of February 28, 2015 to 45,465 million yen as of February 29,
2016. This was mainly due to increases in cash and deposits of 11,783 million yen and inventories of 587 million
yen, while there was a decrease in other (accounts receivable-other, etc.) of 1,345 million yen.
Non-current assets decreased 4,264 million yen to 44,988 million yen. This was mainly due to decreases in store
interior equipment, net of 1,487 million yen and goodwill of 2,427 million yen and deferred tax assets of 2,508
million yen, while there was an increase in investment securities of 2,626 million yen.
Liabilities
Current liabilities increased 1,186 million yen to 36,426 million yen. This was mainly due to increases inelectronically recorded obligations-operating of 1,045 million yen, accounts payable-other of 643 million yen andincome taxes payable of 1,075 million yen, while there was a decrease in short-term loans payable of 1,886 millionyen.
Non-current liabilities decreased 1,523 million yen to 745 million yen. This was mainly due to a decrease indeferred tax liabilities of 1,834 million yen.
Net assets
Net assets increased 7,049 million yen to 53,282 million yen. This was mainly due to an increase in treasury sharesof 1,417 million yen (decrease in total assets), while there were increases in retained earnings of 7,058 million yen
and valuation difference on available-for-sale securities of 1,814 million yen.
2) Cash flow position
Cash and cash equivalents (hereinafter “net cash”) as of February 29, 2016 amounted to 19,452 million yen, or
11,785 million yen more than as of February 28, 2015.
A summary of cash flows from each activity during the current fiscal year is as follows:
Cash flows from operating activities
Net cash provided by operating activities totaled 22,054 million yen (an increase of 9,942 million yen, comparedwith the previous fiscal year). The main factors include income before income taxes and minority interests of 15,367
million yen and depreciation of 6,578 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 4,551 million yen (a decrease of 5,870 million yen). This was mainly
due to the payments of 3,819 million yen for the purchase of property, plant and equipment involving new store
openings.
Cash flows from financing activities
Net cash used in financing activities totaled 5,683 million yen (an increase of 3,158 million yen). This was mainly
due to a decrease in short-term loans payable of 1,886 million yen, cash dividends paid of 2,065 million yen andpurchase of treasury shares of 1,422 million yen.

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

Reference: Cash flow indicators
FY2/14

FY2/15

FY2/16

Shareholders’ equity ratio (%)

56.8

55.2

58.9

Shareholders’ equity ratio based on market prices (%)

72.4

85.3

155.9

Interest-bearing debt to cash flow ratio

1.2

0.3

0.1

Interest coverage ratio (times)

50.1

216.3

553.4

Notes: 1. Shareholders’ equity ratio: Shareholders’ equity / Total assets
2. Shareholders’ equity ratio based on market prices: Market capitalization / Total assets
3. Interest-bearing debt to cash flow ratio: Interest-bearing debt / Operating cash flows
4. Interest coverage ratio: Operating cash flows / Interest payments* Market capitalization is calculated by multiplying the closing share price at the end of the period by the number ofshares outstanding at the end of the period, excluding treasury shares.
* Operating cash flows are calculated using the figures for operating cash flows in the consolidated statement of cash
flows. Interest-bearing debt includes all liabilities on the consolidated balance sheet that incur interest. Interest
payments are calculated using the figures for interest expenses paid in the consolidated statement of cash flows.

(3) Basic Policy on Profit Distribution, and Dividend Plans for the Current and Next Fiscal Years
With regard to the distribution of profits, we will make investments in the businesses that are needed to create
highly appealing brands and supply merchandise that can further increase corporate value (shareholder value),
which will lead to the satisfaction of both customers and shareholders. For profit distributions to shareholders, weuse a consolidated payout ratio before goodwill amortization of 30% as the basic policy. In addition, we position the
repurchase of stock as one way to return earnings to shareholders. Repurchases will be determined in an appropriate
and timely manner while taking into account changes in our stock price, our financial position and other factors.
In the fiscal year that ended in February 2016, sales were strong and net income was up 34.1% in part because of tax
deductions that use Japan’s system of tax credits for increasing personal income. As a result, we plan to pay a
year-end dividend of 90 yen per share, which is 20 yen higher than the forecast of 70 yen. The dividend for theentire fiscal year will be 130 yen, also 20 yen higher than the forecast, which is a dividend payout ratio based on
earnings before goodwill amortization of 27.8%. Although this is below the basic policy of 30%, the total payout
ratio including the purchase of 1,395 million yen of treasury shares in November 2015 is 40.0%. For more
information, please refer to the April 4, 2016 news release about the dividend increase.
For the fiscal year ending on February 28, 2017, we plan to pay a dividend of 75 yen per share (an increase of 10yen), which is equivalent to a dividend of 150 yen (an increase of 20 yen) before adjusting for the 2-for-1 common
stock split on March 1, 2016.
Note: The Company conducted a 2-for-1 common stock split on March 1, 2016.
2. Corporate GroupThe Group (the Company and its subsidiary companies) consists of Adastria Co., Ltd. and 9 consolidated
subsidiaries:, Adastria Logistics Co., Ltd., Adastria Asia Co., Ltd. (Hong Kong), POINT (Shanghai) Co., Ltd.
(China), POINT TW INC. (Taiwan), Adastria Korea Co., Ltd. (South Korea) and four other companies. The sale ofmerchandise is the primary business activity of the Group.
In Japan, the sale of merchandise is conducted by Adastria Co., Ltd. We operate casual clothing brands nationwide
such as GLOBAL WORK, LOWRYS FARM, LEPSIM, JEANASIS, RAGEBLUE, HEATHER, as well as
lifestyle-proposing brands niko and… and STUDIO CLIP.
The overseas merchandise sales business is conducted mainly by Adastria Asia Co., Ltd., as well as POINT(Shanghai) Co., Ltd., POINT TW INC., and Adastria Korea Co., Ltd. These companies use GLOBAL WORK,LOWRYS FARM, niko and…, and other brands.
Adastria Logistics Co., Ltd. performs logistics operations for the products of group companies (receipt, acceptance,storage, and shipment of products).
- 7 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2016 Fiscal YearThe following table lists the major brands of the Group.
Brand

Concept

GLOBAL WORK

Mixing new basic tastes and seasonal trends, GLOBALWORK offers fresh and comfortable fashion at reasonable
prices to people all over the world.

LOWRYS FARM

Themeing on quality and relaxation, LOWRYS FARM
proposes refreshing styling consisting of timeless basic
items and seasonal trendy items for women in ordinary
lifestyle.

niko and…

By nature, something is missing. The niko and… brandbrightens people’s lives by creating originality through an
infusion of its own style.

STUDIO CLIP

Let’s make this day unforgettable. Even though it’s not a
special day. I’d like to catch important things properly. I’dlike to be able to come face with even small things. STUDIO
CLIP proposes life styles that match individuals and is basedon the concept of “my house.”

LEPSIM

Styled on simplicity yet with a sense of freshness, LEPSIM
proposes a casual and unassuming style that blends
naturally into women’s daily lives.

JEANASISJEANASIS is a fashion brand that makes culture more fun.
The sharp black and refined white create an image that isfor you not bound to whims about it. A strong-willed
femininity emerges in masculine and cool fashion.

RAGEBLUE

Blending American casual taste and European traditional
taste, RAGEBLUE focuses on materials and details, andproposes a daily standard style incorporating elements of
popular trends.

HEATHER

Designed for positive girls who have an everlasting playful
mind, HEATHER proposes perfect styling with girlish andedgy items in trend.

- 8 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2016 Fiscal YearAn organizational chart of the Group is as follows.

[Consolidated subsidiary(Logistics)]

Outsourced

Adastria Logistics Co., Ltd.

operations

Order

Delivery- 9 -Customers

Suppliers(Trading
companies,
etc.)[Consolidated subsidiaries(Outside Japan)]
Adastria Asia Co., Ltd.
(Hong Kong)
POINT (Shanghai) Co., Ltd.
(China)POINT TW INC. (Taiwan)
Adastria Korea Co., Ltd.
(South Korea)

Merchandise sale

Delivery / acceptance / storage

logistics<The Company>
Adastria Co., Ltd.

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

3. Management Policies(1) Basic Management Policy
5 Our Belief
The Adastria Group has a strong commitment to being a responsible member of society. We have established thefollowing corporate philosophy as a spirit and a value system that guides the decisions and actions of everyone whoworks at the Group.
Become a person that is essential to others and a company that is essential to others
5 Business Model
The business activities of the Group are distinguished by the following characteristics.
1) Multi Brands
From all the options available, customers choose items that best reflect their unique individuality. We maintain aportfolio of diverse brands to suit each customer’s preferences and lifestyle.
2) Multi Categories
In addition to apparel, we offer a broad range of fashionable merchandise – from handbags, shoes and kitchen goods
to furniture and much more.
3) Value Chain
We quickly make use of trends and store information in our product development. Our streamlined value chain
covers everything from planning to manufacturing, distribution, and sales, enabling us to provide new fashion ideas
to customers around the world.
(2) Performance Targets
The Adastria Group places priority on performance indicators associated with earnings and efficiency. The goal is toincrease operating income, EBITDA, which is an indicator of the ability to generate cash, and other indicators. To
accomplish this, the Adastria Group will differentiate its products by strengthening internal planning and production
operations and conduct various strategies in a manner that reflects the characteristics of each brand. For ROE, thegoal is to increase this return by increasing earnings.
(3) Medium- to Long-term Business Strategy
In Japan, the apparel market is shrinking and changing as the population declines and the number of seniors
increases. Furthermore, progress with information technology is making activities of all types borderless. Bigchanges are taking place in the behavior and values of consumers as a result. No longer is it possible to earn the
support of customers by using conventional business formats and sales methods.
In this challenging environment, we succeeded in reaching the numerical targets of the ACE18 medium-term
management plan, which formulated in April 2015, in the plan’s first year. We made some revisions to the strategic
objectives of this plan to reflect changes taking place at Adastria and in the business climate, but the objectives arebasically the same. To accomplish these goals, we will continue to focus our energy on initiatives aimed atlong-term growth in corporate value and meeting the expectations of shareholders. In addition, we have establishednumerical goals to aim for over the next three years.
■ Our vision
Become a global multi-brand fashion SPA company■ Core strategies
1. Reinforce the multi-brand strategy- 10 -

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

Reexamine the brand portfolio to establish a clear direction for every brand.
2. Develop our core brands
Make GLOBAL WORK and niko and… brands that are successful around the world.
3. Create categories, brands and business sectors linked to ideas for new lifestyles
Expand operations to cover more merchandise categories, brands and business sectors in order to reflect thelifestyles (food, clothing, housing) that customers want.
4. Expand the Internet business
Create an omni-channel and global Internet business and start new retail formats that match changes in market
conditions and incorporate advances in technology.
5. Use advanced technologies to build a stronger and more efficient business infrastructure
Reexamine the entire value chain in order to create patterns and systems.
Use advanced technologies wherever possible while taking advantage of the creativity that can come only frompeople.
■ Numerical targets
During the three-year period ending in February 2019, our goals are an average annual sales growth rate of at least
5% in existing businesses, an existing business operating margin of at least 10% and an ROE of approximately 15%.
(4) Challenges
Significant changes are taking place in Japan’s apparel retailing industry. Major sources of change are the country’s
aging population and falling number of children, the increasing diversity of lifestyles, and competition from foreign
retailers that are entering Japan. Furthermore, strengthening value chains in order to support growth in Japan as wellas in overseas markets has become an important management issue because of globalization.
1) The Company currently has 17 brands. We must have a business framework capable of maintaining a brandportfolio that can leverage existing brands to maximize earnings while targeting growing market sectors
associated with changes in the operating environment.
2) Identifying new drivers of growth is difficult by looking only at the current apparel business. We must seek
opportunities in apparel and other market sectors centered on lifestyles in order to create new sources of growth.
3) The multi-brand strategy is a distinguishing characteristic of the Adastria business model. The ability to target
even niche market categories in order to meet the diversifying preferences of consumers is a key strength of thisstrategy. However, the inability to benefit from economies of scale due to the small sales volume of each brand isa disadvantage. We must establish a business framework capable of fully utilizing the strengths of themulti-brand strategy while reducing the strategy’s weaknesses as much as possible.
4) Constant technological progress is making existing businesses more efficient and may fundamentally alter theretail business in the future. We must be vigilant concerning the appearance of new technologies and look forways to incorporate these technologies in our business operations.
5) The workforce and organization of the Adastria Group have been growing and we expect that our network of
stores and subsidiaries will increase along with the expansion of our overseas operations. As we grow, we willneed to ensure that the entire group aims for the same goals and adheres to the same code of conduct. At the sametime, we must accumulate and share information, know-how and knowledge. All of these actions will be needed
to conduct business activities that can satisfy our customers. In addition, aiming for growth as a company isequivalent to aiming for the growth of the employees who perform the company’s activities. This is why we must
work on ways to continue providing employees an environment that enables them to upgrade their skills
continuously.
- 11 -

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

4. Basic Approach for the Selection of Accounting Standards
The Company prepares its consolidated financial statements based on the generally accepted accounting principles
in Japan to permit comparisons with prior years and with the financial data of other companies.
We will take suitable actions with regard to the application of International Financial Reporting Standards (IFRS) by
taking into account associated factors in Japan and other countries.

- 12 -

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

5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Million yen)
FY2/16(As of Feb. 29, 2016)

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

7,677

19,460Notes and accounts receivable-trade

7,593

7,668

Inventories

14,48815,076

Deferred tax assets

1,883

1,765

Other

2,893

1,548

Allowance for doubtful accounts

(48)

(53)

34,48845,465

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

3,405

3,524

Accumulated depreciation(1,418)(1,567)

Buildings and structures, net

1,987

1,957

Store interior equipment

26,055

26,794

Accumulated depreciation(17,634)(19,860)

Store interior equipment, net

8,420

6,933

1,732

1,732

167

80

Land
Construction in progress
Other

1,208

1,198

Accumulated depreciation

(608)

(685)

Other, net

600

512

12,908

11,215

Goodwill

7,921

5,493

Other

1,372

1,471

Total intangible assets

9,293

6,965

Investment securities

7,604

10,231

Lease and guarantee deposits

16,924

16,622

Deferred tax assets

2,578

69

Total property, plant and equipment
Intangible assets

Investments and other assets

Other

176

137

Allowance for doubtful accounts

(232)

(253)

Total investments and other assets

27,05126,80749,25344,98883,74290,454

Total non-current assets
Total assets- 13 -

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

(Million yen)
FY2/16(As of Feb. 29, 2016)

FY2/15(As of Feb. 28, 2015)
Liabilities
Current liabilities
Notes and accounts payable-trade

6,246

6,768

Electronically recorded obligations-operating

8,855

9,901

Short-term loans payable

3,753

1,867

Accounts payable-other

9,687

10,331

Income taxes payable

3,293

4,368

Deferred tax liabilities

210-

Provision for bonuses

2,036

2,212

358

412

Other provision
Other
Total current liabilities

797

563

35,24036,426

1,909

75

95

94

Non-current liabilities
Deferred tax liabilities
Provision for directors’ retirement benefits
Other

263

575

2,268

745

37,50837,171

Capital stock

2,660

2,660

Capital surplus

6,987

6,987

Retained earnings

32,651

39,709Treasury shares(406)(1,824)

Total shareholders’ equity

41,89247,533

3,631

5,445

Deferred gains or losses on hedges

357

(263)

Foreign currency translation adjustment

352

567

4,341

5,749

46,23353,282

83,74290,454

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

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

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 14 -

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

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY2/15(Mar. 1, 2014 – Feb. 28, 2015)(Million yen)
FY2/16(Mar. 1, 2015 – Feb. 29, 2016)

Net sales
Cost of sales

184,588
82,064200,038
86,772Gross profit

102,524

113,266

Selling, general and administrative expenses
Advertising expenses
Provision of allowance for doubtful accounts
Directors’ compensations
Salaries and bonuses
Provision for bonuses
Welfare expenses
Rents
Lease payments
Depreciation
Amortization of goodwill
Other

6,424
37
391
25,7401,882
4,161
31,710
485
7,356
2,394
15,958

5,805
26
207
26,643
2,096
4,239
33,198
437
6,394
2,213
15,99996,542

97,261

5,981

16,004

6
82
67
44
262
233

6
107
132
42
169
326

Total non-operating income

697

786

Non-operating expenses
Interest expenses
Cost of lease revenue
Foreign exchange losses
Loss on valuation of derivatives
Other

56
154
16

39
99
427
38

Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
House rent income
Revenue from electric power sales
Foreign exchange gains
Gain on valuation of derivatives
Other

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on sales of shares of subsidiaries and associates
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses

226

605

6,452

16,185

9

-

9

-

352
1,531
63

173
644
-

1,947

818

Income before income taxes and minority interests

4,514

15,367

Income taxes-current
Income taxes-deferred

5,037(1,026)

6,138
105

Total income taxes

4,010

6,244

Income before minority interests

503

9,122

Net income

503

9,122

- 15 -

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

Consolidated Statement of Comprehensive Income(Million yen)
FY2/16(Mar. 1, 2015 – Feb. 29, 2016)

FY2/15(Mar. 1, 2014 – Feb. 28, 2015)
Income before minority interests

503

9,122

Other comprehensive income
Valuation difference on available-for-sale securities

1,910

1,814

Deferred gains or losses on hedges

328

(620)

Foreign currency translation adjustment

43

214

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to minority
interests- 16 -

2,283

1,408

2,787

10,5302,787

10,530--Adastria Co., Ltd. (2685) Summary of Financial Results for February 2016 Fiscal Year

(3) Consolidated Statement of Changes in Equity
FY2/15 (Mar. 1, 2014 – Feb. 28, 2015)(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus Retained earnings Treasury shares

2,660

6,986

33,482

Total shareholders’equity(407)

42,722

Changes of items during period
Dividends of surplus(1,335)(1,335)503

503

Net income
Purchase of treasury shares

(4)

(4)

Disposal of treasury shares

0

0

4

5

Issuance of new shares-exerciseof subscription rights to shares
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

0

-

0

(831)

0

(830)

2,660

6,987

32,651(406)

41,892(Million yen)

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of current
period1,720

Deferred
gains orlosses onhedges28

Foreigncurrencytranslation
adjustment
308

Total
accumulated Subscription
Total net assets
rights to shares
othercomprehensiv
e income
2,058

5

44,786

Changes of items during period
Dividends of surplus-(1,335)

Net income-

503

Purchase of treasury shares-(4)

Disposal of treasury shares

-

0

-

5

Issuance of new shares-exerciseof subscription rights to shares
Net changes of items other thanshareholders’ equity
Total changes of items during
period

1,910

328

43

2,283

(5)

2,278

1,910

328

43

2,283

(5)

1,447

Balance at end of current period

3,631

357

352

4,341

-

46,233- 17 -

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

FY2/16 (Mar. 1, 2015 – Feb. 29, 2016)(Million yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus Retained earnings Treasury shares

2,660

6,987

32,651

Total shareholders’equity(406)

41,892

Changes of items during period
Dividends of surplus(2,063)

Net income

9,122(2,063)
9,122

Purchase of treasury shares(1,417)(1,417)

Disposal of treasury shares-

Issuance of new shares-exerciseof subscription rights to shares
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

-

-

7,058

(1,417)

5,640

2,660

6,987

39,709(1,824)47,533(Million yen)

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of current
period3,631

Deferred
gains orlosses onhedges357

Total
Foreign
Subscription
accumulated
Total net assets
currency
rightsto shares
othertranslation
comprehensive
adjustment
income
352

4,341

-

46,233

Changes of items during period
Dividends of surplus-(2,063)

Net income

-

9,122

Purchase of treasury shares-(1,417)

Disposal of treasury shares

-

-

-

-

Issuance of new shares-exerciseof subscription rights to shares
Net changes of items other thanshareholders’ equity
Total changes of items during
period

1,814

(620)

214

1,408

-

1,408

1,814

(620)

214

1,408

-

7,049

Balance at end of current period

5,445

(263)

567

5,749

-

53,282- 18 -

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

(4) Consolidated Statement of Cash Flows
FY2/15(Mar. 1, 2014 – Feb. 28, 2015)(Million yen)
FY2/16(Mar. 1, 2015 – Feb. 29, 2016)

Income before income taxes and minority interests

4,514

15,367

Depreciation

7,641

6,578

Impairment loss

1,531

644

Amortization of goodwill

2,394

2,213

Interest and dividend income

(89)

(114)

Interest expenses

56

39

Cash flows from operating activities

Increase (decrease) in allowance for doubtful accounts

37

26

Increase (decrease) in provision for bonuses

435

178

Loss (gain) on sales of shares of subsidiaries and associates-

173

Decrease (increase) in notes and accounts receivable-trade(1,489)

(206)

(388)

(694)

Increase (decrease) in notes and accounts payable-trade

323

1,777

Increase (decrease) in accounts payable-other

264

224

Decrease (increase) in inventories

Increase (decrease) in accrued consumption taxes

1,306

(142)

Other, net

296

(153)

Subtotal

16,83425,911

Interest and dividend income received

89

114

Interest expenses paid

(56)

(39)

Income taxes paid

(4,754)(3,931)

Net cash provided by (used in) operating activities

12,112

22,054(7,602)(3,819)Proceeds from sales of property, plant and equipment

375-

Purchase of intangible assets

(759)

(731)

(1)

(1)

Cash flows from investing activities
Purchase of property, plant and equipment

Purchase of investment securities
Proceeds from sales of investment securities

24-(3,339)(1,153)

875

1,117

-

29

6

7

(10,421)(4,551)

Increase (decrease) in short-term loans payable(1,183)(1,886)

Cash dividends paid

(1,336)(2,065)(4)(1,422)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Purchase of treasury shares
Other, net

0

(308)

(2,524)(5,683)

(28)

(34)

Net increase (decrease) in cash and cash equivalents(862)

11,785

Cash and cash equivalents at beginning of period

8,529

7,667

Cash and cash equivalents at end of period

7,667

19,452

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents- 19 -

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

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Segment and Other Information
Segment information
FY2/15 (Mar. 1, 2014 – Feb. 28, 2015)
Omitted since the Group has only a single business segment, which is the planning and sales of clothing and related
merchandise.
FY2/16 (Mar. 1, 2015 – Feb. 29, 2016)
Omitted since the Group has only a single business segment, which is the planning and sales of clothing and related
merchandise.
Related information
FY2/15 (Mar. 1, 2014 – Feb. 28, 2015)
1. Information by product or service
Omitted since sales to external customers in the category of a single product or service exceeded 90% of net sales
on the consolidated statement of income.
2. Information by region(1) Net sales
Omitted since sales to external customers in Japan exceeded 90% of net sales on the consolidated statement ofincome.
(2) Property, plant and equipment
Omitted since property, plant and equipment in Japan exceeded 90% of property, plant and equipment on the
consolidated balance sheet.
3. Information by major client
Omitted since there is no sales to external customers whom accounted for 10% or more of net sales on the
consolidated statement of income.
FY2/16 (Mar. 1, 2015 – Feb. 29, 2016)
1. Information by product or service
Omitted since sales to external customers in the category of a single product or service exceeded 90% of net sales
on the consolidated statement of income.
2. Information by region(1) Net sales
Omitted since sales to external customers in Japan exceeded 90% of net sales on the consolidated statement ofincome.
(2) Property, plant and equipment
Omitted since property, plant and equipment in Japan exceeded 90% of property, plant and equipment on the
consolidated balance sheet.

- 20 -

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

3. Information by major client
Omitted since there is no sales to external customers whom accounted for 10% or more of net sales on the
consolidated statement of income.
Information related to impairment losses on non-current assets for each reportable segment
FY2/15 (Mar. 1, 2014 – Feb. 28, 2015)
Omitted since the Group has only a single business segment, which is the planning and sales of clothing and related
merchandise.
FY2/16 (Mar. 1, 2015 – Feb. 29, 2016)
Omitted since the Group has only a single business segment, which is the planning and sales of clothing and related
merchandise.
Information related to goodwill amortization and the unamortized balance for each reportable segment
FY2/15 (Mar. 1, 2014 – Feb. 28, 2015)
Omitted since the Group has only a single business segment, which is the planning and sales of clothing and related
merchandise.
FY2/16 (Mar. 1, 2015 – Feb. 29, 2016)
Omitted since the Group has only a single business segment, which is the planning and sales of clothing and related
merchandise.
Information related to gain on bargain purchase for each reportable segment
FY2/15 (Mar. 1, 2014 – Feb. 28, 2015)
Not applicable.
FY2/16 (Mar. 1, 2015 – Feb. 29, 2016)
Not applicable.

- 21 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2016 Fiscal YearPer Share Information
FY2/15(Mar. 1, 2014 – Feb. 28, 2015)(Yen)
FY2/16(Mar. 1, 2015 – Feb. 29, 2016)

952.02

1,106.45

Net income per share

10.37

188.31

Diluted net income per share

10.37

-

Net assets per share

Notes: 1.The Company conducted a 2-for-1 common stock split on March 1, 2016. Net assets per share, net income per share anddiluted net income per share have been calculated as if this stock split had taken place at the beginning of FY2/15.
2. Diluted net income per share in FY2/16 is not presented since the Company has no outstanding dilutive securities.
3. The basis of calculating the net income per share and diluted net income per share is as follows.
(Million yen)
FY2/15
FY2/16(Mar. 1, 2014 – Feb. 28, 2015)(Mar. 1, 2015 – Feb. 29, 2016)
Net income per share
Net income
Amount not available to common stockholders
Net income applicable to common stock
Average number of shares of common stock
outstanding during the period (Thousand shares)

503

9,122

-

-

503

9,122

48,564

48,443

-

-

1

-

-

-

Diluted net income per share
Adjusted net income
Increase in the number of common stock(Thousand shares)
Summary of potential stock not included in thecalculation of diluted net income per share since there
was no dilutive effect- 22 -

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

Subsequent Events
Stock split
The Company conducted a common stock split as of March 1, 2016 following the resolution by its Board of
Directors on January 20, 2016.

1. Purpose of the stock split
The stock split will reduce the amount of investment required per share, and enhance the liquidity of the Company's
shares thus making it easier to invest in its shares and expand the shareholder base.
2. Summary of the stock split(1) Method of the stock split
Shareholders listed in the final shareholder register on the record date of February 29, 2016 (Monday) havereceived two shares of common stock for each share held on the same day.
(2) Increase in the number of shares due to the stock split(a) Number of shares outstanding before the stock split:(b) Increase in the number of shares due to the stock split:(c) Number of shares outstanding after the stock split:(d) Total number of authorized shares after the stock split:

24,400,000 shares
24,400,000 shares
48,800,000 shares
150,000,000 shares(3) Schedule(a) Announcement of record date:(b) Record date:(c) Effective date:February 12, 2016 (Friday)
February 29, 2016 (Monday)
March 1, 2016 (Tuesday)(4) Other
The effect of these changes on per share information is shown in “5. (5) Per Share Information.”- 23 -

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

6. Other Information(1) Changes in Directors
1. Change in representative director
Not applicable.
2. Change of other board members (Date of change: May 26, 2016)(1) Candidate for director appointment
Director

Hiromi Horie

Note: Ms. Hiromi Horie is a candidate for an outside director.
(2) Candidate for corporate auditor appointment
Corporate Auditor (Full-time)

Tsuyoshi Matsuda (Currently Corporate Auditor of Adastria Logistics Co., Ltd.)

Corporate Auditor

Kazuhiko Ebihara

Note: Mr. Kazuhiko Ebihara is a candidate for an outside director.
(3) Retiring corporate auditor
Corporate Auditor (Full-time)

Shigeru Hirota

Corporate Auditor

Naoki Iwasaki

Note: Mr. Shigeru Hirota is an outside corporate auditor.
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.

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