Summary of Consolidated Financial Results for the Fiscal Year Ended February 28, 2023
[Japanese GAAP]
April 4, 2023

Company name: Adastria Co., Ltd.
Listing: Tokyo Stock Exchange
Stock code:
2685
URL: https://www.adastria.co.jp
Representative: Osamu Kimura, Representative Director and President
Itsuo Iwakoshi, Senior Executive Officer, General Manager ofContact:
Administration Division, Head of Corporate Planning OfficeTel: +81-3-5466-2060
Scheduled date of Annual General Meeting of Shareholders:
May 25, 2023
Scheduled date of payment of dividend:
May 10, 2023
Scheduled date of filing of Annual Securities Report:
May 26, 2023
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, 2023 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended February 28, 2023
(March 1, 2022 – February 28, 2023)(1) Consolidated results of operations(Percentages shown for net sales and incomes represent year-on-year changes)
Net income
Net sales
Operating profit
Ordinary profit
attributable to ownersof the parent

Million yen

Fiscal year ended Feb. 28, 2023
Fiscal year ended Feb. 28, 2022
Note: Comprehensive income%

Million yen%

Million yen%

Million yen

242,552
20.3
11,51575.4
12,02647.3
201,582
9.6
6,564
756.1
8,166 173.9
Fiscal year ended Feb. 28, 2023:
8,019 million yen (up 51.9%)
Fiscal year ended Feb. 28, 2022:
5,280 million yen (-%)
Net income per
Diluted net
Ratio of ordinary
ROE
share
income per shareprofit to total assets
Yen

Fiscal year ended Feb. 28, 2023
Fiscal year ended Feb. 28, 2022
Reference: Equity in earnings of affiliates

Yen

%

%

7,540
4,917

53.3
-

Ratio of operating
profit to net sales%%

166.3713.3
108.72
9.4
Fiscal year ended Feb. 28, 2023: (0) million yen
Fiscal year ended Feb. 28, 2022: - million yen

11.5
8.4

4.7
3.3

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

As of Feb. 28, 2023
111,392
60,76253.3
1,309.96
As of Feb. 28, 2022
97,95754,96355.1
1,192.62
Reference: Shareholders’ equity
As of Feb. 28, 2023: 59,407 million yen As of Feb. 28, 2022: 53,963 million yen
Note: At the end of the previous fiscal year, the provisional accounting treatment for the business combination was finalized , and, forthe fiscal year ended February 2022, the initial allocation of acquisition costs due to the provisional finalization of accounting
treatment was significantly revised. The reported amounts reflect these changes.
(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. 28, 2023
Fiscal year ended Feb. 28, 2022

13,4603,504(9,963)(7,780)(4,398)(3,251)

16,343
16,863

2. Dividends
Dividend per share
1Q-end2Q-endYen

Fiscal year ended Feb. 28, 2022
Fiscal year ended Feb. 28, 2023
Fiscal year ending Feb. 29, 2024
(forecast)

3Q-end Year-end

Yen

Yen

Total

Dividend
Dividend on
Totalpayout ratio
equitydividends (consolidated) (consolidated)

Yen

Yen

Million yen

-

25.00
25.00

-

30.00
35.00

55.00
60.00

2,510
2,739

-

30.00

-

35.00

65.00

%

%

50.6
36.1

4.8
4.8

31.4

3. Consolidated Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 – February 29, 2024)
Net sales
Million yen

Full year

260,000

Operating profit%

7.2

Million yen

14,000%21.6

Ordinary profit
Million yen

14,000(Percentages represent year-on-year changes)
Net income attributable to Net income perowners of the parent
share

%

16.4

Million yen

9,400

%

24.7

Yen

207.27

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly added: 1 (Adastria (Thailand) Co., Ltd.)

Excluded: -(2) 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: Yes
3) Changes in accounting-based estimates: None
4) Restatements: None
Note: Please refer to the section “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial
Statements, Changes in Accounting Policies” on page 16 for further information.

(3) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of Feb. 28, 2023:
48,800,000 shares
As of Feb. 28, 2022:

48,800,000 shares

2) Number of treasury shares at the end of the period
As of Feb. 28, 2023:
3,449,391 shares

As of Feb. 28, 2022:

3,552,459 shares

3) Average number of shares outstanding during the period
Fiscal year ended Feb. 28, 2023:
45,322,871 sharesFiscal year ended Feb. 28, 2022:

45,229,961 shares

Reference: Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended February 28, 2023
(March 1, 2022 – February 28, 2023)(1) Non-consolidated results of operations
Net sales

Operating profit

Million yen

Fiscal year ended Feb. 28, 2023
Fiscal year ended Feb. 28, 2022

196,727
174,065

%

13.0
8.2

Million yen%

10,384
5,533(Percentages represent year-on-year changes)
Ordinary profit
Net income
Million yen

87.7
263.6

10,238
6,667

Net income per share

Diluted net income per share

Yen

Yen

Fiscal year ended Feb. 28, 2023
Fiscal year ended Feb. 28, 2022

146.20
98.25

%

53.6
140.2

Million yen

6,626
4,443

%

49.1
-

-

(2) Non-consolidated financial position
As of Feb. 28, 2023
As of Feb. 28, 2022
Reference: Shareholders’ equity

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen86,314
51,251
78,983
46,973As of Feb. 28, 2023: 51,251 million yen

59.4
1,130.13
59.5
1,038.14
As of Feb. 28, 2022: 46,973 million yen

Note 1: The current financial report is not subject to audit 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. These statements are not promises by Adastria regarding future performance. Actual results may differ
significantly from these forecasts for a number of factors. Please refer to the section “1. Overview of Results of Operations(4) Outlook” on page 7 regarding preconditions or other related matters for the forecast shown above.

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

6(3) Cash Flows

6(4) Outlook

7(5) Basic Policy on Profit Distribution, and Dividend Plans for the Current and Next Fiscal Years

8

2. Basic Approach for the Selection of Accounting Standards

8

3. Consolidated Financial Statements and Notes

9(1) Consolidated Balance Sheet

9(2) Consolidated Statements of Income and Comprehensive Income11(3) Consolidated Statement of Changes in Equity

13(4) Consolidated Statement of Cash Flows

15(5) Notes to Consolidated Financial Statements

16

Going Concern Assumption

16

Changes in the Scope of Consolidation or Application of the Equity Metho d

16

Changes in Accounting Policies

16

Segment Information

17

Per Share Information

19

Subsequent Events

19

- 1 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

1. Overview of Results of Operations(1) Results of Operations
Consolidated results(Million yen)
FY2/22(Mar. 1, 2021 – Feb. 28, 2022)

FY2/23(Mar. 1, 2022 – Feb. 28, 2023)

201,582

Operating profit

YoY change(%)

242,552

YoY change(Amount)
40,9696,564

11,515

4,950

75.4

Ordinary profit

8,166

12,026

3,860

47.3

Net income attributableto owners of the parent

4,917

7,540

2,622

53.3

Net sales

20.3

Japan slowly returned to normal consumer activity during the fiscal year that ended in February 2023 as thenumber of people going out increased as restrictions on various activities ended. However, there was a brief
upturn of infections caused by the Omicron variant. Overall, the business climate was better than in the previous
fiscal year and sales were higher than one year earlier in every month of the fiscal year for all stores and on an
existing store basis. The outlook for the economy remains uncertain because of the yen ’s rapid depreciation, therising cost of resources and energy and worldwide inflation because of the Ukraine crisis. However, the desire of
consumers to buy apparel and other fashion products remains strong.
The Adastria Group announced a medium-term management plan on April 13, 2022 with the following strategies
for growth and is taking numerous actions to accomplish these goals.
Growth Strategy Ⅰ

Multi-Brand, Multi-Category

Growth Strategy IⅠ Digital Customer Interactions and Services
Growth Strategy ⅠII Glocal
Growth Strategy ⅠV New BusinessGrouping of brands according to roles for improved
profitability and growth
Accelerate growth of our EC site and create a fun EC
community
Develop models in Mainland China and cultivate
Southeast Asia
Establish a food and beverage business and create new
appealConsolidated net sales increased 20.3% year-on-year to 242,552 million yen, operating profit increased 75.4% to11,515 million yen, ordinary profit increased 47.3% to 12,026 million yen, and net income attributable to ownersof the parent increased 53.3% to 7,540 million yen.
As a result of Zetton, Inc. becoming a consolidated subsidiary in February 2022, Adastria is reporting the Appareland Sundry Goods-related Business and Other (Food and Beverage Business) as separate business segments
beginning with the fiscal year that ended in February 2023.
In the Apparel and Sundry Goods-related business segment, sales in Japan were up 14.5% from one year earlier.
Performance benefited from external factors such as the easing of restrictions on store operating hours andfavorable weather for sales of spring and summer merchandise. Successful activities involving merchandise,including several hit products that meet the rising demand for clothing for outings, TV commercials, the use of
loyalty points and other actions also contributed to segment sales and earnings.
In the Other segment, sales increased due to the acquisition of Zetton, Inc., which operates a food and beveragebusiness in line with Adastria’s growth strategy.
As part of our digital strategy, TV commercials and other initiatives were launched to attract customers andincrease awareness of Adastria’s “Dot ST” e-commerce website. Activities include adding merchandise of othercompanies to enlarge the lineup of products. As a result, the number of members of this website is now 15.5
million, 1.9 million more than at the end of the previous fiscal year. Although pace of sales growth was held downbecause of the recovery at physical stores, e-commerce sales continue to increase with these sales up 8.9% fromone year earlier. E-commerce sales increased in part because subsidiary BUZZWIT Co., Ltd., which operates an
e-commerce business, acquired OPEN AND NATURAL Inc., a children’s clothing e-commerce company that is- 2 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Yearnow a consolidated subsidiary.
In the United States, sales rose 53.5% because of strong consumer spending, growth of wholesale sales because ofquality improvements, and higher e-commerce sales. In Taiwan, sales increased 45.6% because of the much lower
impact of the pandemic and the success of new brands. In Hong Kong, sales were up 19.6% despite the negative
impact of the pandemic in the first quarter. Sales started recovering in the second quarter and new stores and theHong Kong government’s consumption voucher scheme contributed to sales growth. In Mainland China, although
stores were opened in accordance with Adastria’s glocal growth strategy, the increasing severity of the pandemic
held sales growth to only 6.3%. As a result, total overseas sales were up 35.6% and operating profit were up
36.1%. All overseas sales information is based on conversions to yen of sales in local currencies.
The weaker yen and higher cost of raw materials had a negative effect on earnings. Several factors contributed toearnings during the fiscal year, including measures to control inventories and limit sales of merchandise at
discounts by supplying at the right times, prices and volumes, supply fashions with even more added value, andrevise prices of some items to maintain the proper balance between prices the value of merchandise. The additionof Zetton as a new consolidated subsidiary raised the percentage of sales of food and beverages, which have arelatively high gross profit margin, and helped raise the consolidated g ross profit margin. Logistics and “Dot ST”
e-commerce website operations were suspended temporarily due to the unauthorized access to the Adastria server
in January 2023. This incident reduced opportunities to sell winter apparel and other products. As a r esult, thefourth quarter gross profit margin of apparel and other merchandise sold in Japan was lower than in the samequarter of the previous fiscal year. As a result, the gross profit margin decreased 0.4 percentage point from one
year earlier to 54.7%.
Selling, general, and administrative expenses, personnel expenses, and store leasing expenses, which had been
held down due to store closures and shortened business hours in the previous fiscal year, increased. Despite thisincrease, the SG&A to sales ratio decreased 1.9 percentage point to 49.9% and the operating margin improved
because of the sales recovery, efficient operation of businesses, and lower advertising expenses caused by theapplication of the new revenue recognition standard.
Non-operating income includes a subsidy of 231 million yen related to shortened operating hours caused by the
pandemic, employment adjustment subsidies of 37 million yen and foreign exchange gains of 291 million yen. A
loss on valuation of derivatives of 106 million yen related to shutting down the South Korean business wasrecorded as a non-operating expense.
There was an extraordinary loss of 592 million yen for the impairment of store assets.
Business segment performance was as follows.
1) Apparel and Sundry Goods-related BusinessAs a result of the above, sales were 232,927 million yen and segment profit was 12,289 million yen.
Seven stores were added to this business because OPEN AND NATURAL Inc. became a consolidated subsidiaryin the first quarter. In addition, we opened 96 stores (including 25 overseas) and closed 91 stores (including 3
overseas), resulting in a total of 1,435 stores (including 95 overseas) at the end of the current fiscal year.
2) Other (Food and Beverage Business)
Sales were 9,665 million yen and segment loss was 263 million yen.
The number of stores at the end of the current fiscal year was 74, a result of the increase of 73 stores due to theacquisition of Zetton, Inc. at the end of the previous fiscal year and opening of 4 stores and closing of 8 stores.

- 3 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

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

FY2/23

YoY change (%)

Sales (million yen)

Composition (%)

GLOBAL WORK

45,597

18.8

20.7

niko and ...

29,82512.3

9.5

LOWRYS FARM

21,3698.8

4.9

studio CLIP

20,325

8.4

7.1

LEPSIM

12,414

5.1

5.3

JEANASiS

11,2094.6

6.5

BAYFLOW

10,180

4.2

11.6

LAKOLE

7,934

3.3

63.8

Others34,813

14.3

13.1

Total (Adastria)

193,671

79.8

13.0

BUZZWIT Co., Ltd. (Note 3)

10,3694.3

50.6

ELEMENT RULE Co., Ltd.

11,068

4.6

12.6

280

0.1

282.6

215,390

88.8

14.5

Hong Kong

3,372

1.4

19.6

Mainland China

2,505

1.0

6.3

Taiwan

4,435

1.8

45.6

Other consolidated subsidiaries
Total (Japan)

USA
Total (Overseas)
Total (Apparel and Sundry Goods-related
Business)
Zetton, Inc. (Note 4)

7,222

3.0

53.5

17,5357.2

35.6

232,925

96.0

15.8

9,036

3.7

-

ADASTRIA eat Creations Co., Ltd.

590

0.3

23.5

Total (Food and Beverage Business)

9,626

4.0

1,913.4

Total (Group)242,552

100.0

20.3

Notes:

1. The number of stores is categorized by using brand operating divisions and geographic regions.
2. The above figures are sales to external customers and do not include internal sales between consolidated
subsidiaries.
3. Sales of BUZZWIT Co., Ltd. include sales of its consolidated subsidiary OPEN AND NATURAL, Inc.
4. Sales of Zetton, Inc. include sales of its consolidated subsidiary ZETTON, INC (USA Business).

(2) Sales for Merchandise Categories
Category

FY2/23

YoY change (%)

Sales (million yen)

Composition (%)

Men’s apparel (bottoms, tops)

37,89915.6

22.9

Lady’s apparel (bottoms, tops)

148,319

61.2

15.4

Others56,332

23.2

33.6

242,552

100.0

20.3

Total
Notes:

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.

- 4 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

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

As of Feb. 28,
2022

FY2/23
Increase
Increase
Opened Changed Closed(Note 3)/decrease

As of Feb. 28,
2023

GLOBAL WORK

206

-

4

-

(5)

(1)

205

niko and ...

144

-

4

-

(7)

(3)

141

LOWRYS FARM

136

-

2

-

(9)

(7)

129

studio CLIP

184

-

2

-

(12)

(10)

174

LEPSIM

120

-

1

-

(7)

(6)

114

JEANASiS

73

-

3

-

(5)

(2)

71

BAYFLOW

60

-

2

-

(1)

1

61

LAKOLE

47

-

18

-

(2)

16

63

Others

275

-

16

-

(27)

(11)

264

Total (Adastria)

1,245

-

52

-

(75)

(23)

1,222

BUZZWIT Co., Ltd. (Note 4)

18

7

6

-

(2)

11

29

ELEMENT RULE Co., Ltd.

84

-

8

-

(11)

(3)

81

Other consolidated subsidiaries

3

-

5

-

-

5

8

1,350

7

71

-

(88)

(10)

1,340

Hong Kong

14

-

7

-

-

7

21

Mainland China

6

-

7

-

-

7

13

Taiwan

43

-

11

-

(2)

9

52

USA

10

-

-

-

(1)

(1)

9

73

-

25

-

(3)

22

95

1,423

7

96

-

(91)

12

1,435

-

73

4

-

(6)

71

71

5

-

-

-

(2)

(2)

3

5

73

4

-

(8)

69

74

1,428

80

100

-

(99)

81

1,509

Total (Japan)
1

Total (Overseas)
Total (Apparel and Sundry
Goods-related Business)
Zetton, Inc. (Note 5)
ADASTRIA eat Creations Co., Ltd.
Total (Food and Beverage Business)
Total (Group)
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. “Increase” represents the increase in the number of stores resulting from the consolidation of Zetton, Inc. at theend of FY2/22 and OPEN AND NATURAL Inc. during the first quarter of FY2/23.
4. The number of stores of BUZZWIT Co., Ltd. includes sales of its consolidated subsidiary OPEN AND NATURAL
Inc.
5. The number of stores of Zetton, Inc. includes sales of its consolidated subsidiary ZETTON, INC (USA Business).

- 5 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

(2) Financial Position
AssetsCurrent assets increased 7,602 million yen from as of February 28, 2022 to 55,772 million yen as of February 28,
2023. This was mainly due to increases of 2,293 million yen in notes and accounts receivable-trade and 5,420
million yen in inventories.
Non-current assets increased 5,831 million yen to 55,619 million yen. This was mainly due to increases of 1,596
million yen in store interior equipment, net, 3,121 million yen in right-of-use assets, net (right-of-use assets, etc.,
resulting from the application of the new lease accounting standard (ASC No. 842 ), etc., by the U.S. subsidiary)and 1,156 million yen in other, net under property, plant and equipment.
Liabilities
Current liabilities increased 5,573 million yen to 43,989 million yen. This was mainly due to increases of 1,997
million yen in notes and accounts payable-trade, 889 million yen in lease obligations, 1,664 million yen inaccounts payable-other and 2,535 million yen in contract liabilities arising from the adoption of the revenue
recognition accounting standard, while there was a decrease of 1,568 million yen in provision for point cardcertificates.
Non-current liabilities increased 2,061 million yen to 6,639 million yen. This was mainly due to an increase of
2,600 million yen in lease obligations (lease liabilities, etc., resulting from the application of the new leaseaccounting standard (ASC No. 842) by the U.S. subsidiary).
Net assets
Net assets increased 5,799 million yen to 60,762 million yen. This was mainly due to a decrease of 349 million
yen in treasury shares (increase in net assets), and increases of 4,854 million yen in retained earnings and 319
million yen in foreign currency translation adjustment.
(3) Cash Flows
Cash and cash equivalents (hereinafter “net cash”) as of February 28, 2023 amounted to 16,343 million yen, or
519 million yen less than as of February 28, 2022.
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 13,460 million yen (an increase of 9,956 million yen, comparedwith the previous fiscal year). The main positive factors include net income before income taxes of 11,433
million yen, depreciation of 8,796 million yen and an increase in trade payables of 2,130 million yen. Main
negative factors include an increase in inventories of 4,939 million yen and income taxes paid of 4,367 million
yen.
Cash flows from investing activities
Net cash used in investing activities totaled 9,963 million yen (an increase of 2,182 million yen). The main
positive factors include proceeds from refund of leasehold and guarantee deposits of 2,555 million yen. Main
negative factors include the payments of 6,988 million yen for the purchase of property, plant and equipment,
3,520 million yen for the purchase of intangible assets, 1,000 million yen for the payments of leasehold andguarantee deposits and 839 million yen for the purchase of shares of subsidiaries resulting in change in scope of
consolidation.
Cash flows from financing activities
Net cash used in financing activities totaled 4,398 million yen (an increase of 1,146 million yen). This was
mainly due to repayments of long-term borrowings of 692 million yen, cash dividends paid of 2,510 million yen
and repayments of lease obligations of 1,188 million yen.
- 6 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year- 7 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

Reference: Cash flow indicators
FY2/21

FY2/22

FY2/23

Shareholders’ equity ratio (%)

53.1

55.1

53.3

Shareholders’ equity ratio based on market prices (%)

94.4

78.4

88.2

Interest-bearing debt to cash flow ratio

0.3

1.4

0.6

23.6
Interest coverage ratio (times)
74.6
69.4
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 stat ement of cash flows.

(4) Outlook
The Japanese economy is slowly returning to normal as social and economic activities resume along withpandemic safety measures. There are many sources of concern about the business climate such as the rising costof raw materials and energy, upturns in inflation and interest rates, foreign exchange rate movements, andgeopolitical risk. Although consumer spending is recovering somewhat as economic activity returns to normal, aJapanese government household budget survey showed that consumer spending on clothing during calendar 2022
was only slightly above 80% of the level before the pandemic. This indicates that there is still potential for therecovery of apparel spending to continue. However, the outlook for market condit ions must be based on thepremise that the behavior of consumers will not go back to the situation prior to the pandemic. The main reasons
are the change in life styles caused by the pandemic, such as the widespread use of telework, and the irreversible
changes in consumers’ preferences. At the same time, there are numerous positive trends for the Adastria Group.
One example is increasing demand for one-mile wear and household products as people spend more time at home.
Other beneficial shifts in consumer preferences are the increasing popularity of outdoor activities, the increasinguse of casual apparel for business activities, and the growth of the e -commerce market. We are taking manyactions to target these new categories of demand.
From a medium to long-term perspective, the apparel market in Japan is certain to structurally shrink slowly as
the population ages, the number of children falls and disposable income decreases. In other countries, the growthof apparel markets is likely to continue as populations increase and personal income in emerging countries
climbs.
To achieve growth and higher earnings in this business climate, we are currently implementing a medium -term
management plan that will end with the fiscal year ending in February 2026.
(1) In the apparel business in Japan, we will divide our multi-brand portfolio, which has a large number ofinnovative brands, into three categories: independent brands, growth brands, and profit brands. Our objectiveis growth of the scale of operations and of our earnings by making strategic investments and implementing
business strategies that match the current stage of each category of brands.
(2) For our digital strategy, as the e-commerce market continues to expand, we will make investments to raise theawareness of our e-commerce operations and the capabilities of these operations. In addition, we will add
more merchandise categories to our e-commerce operations and strengthen relationships between our store
personnel and customers. Our objectives to increase the number of active customers and the number ofpurchases these customers make.
(3) Our overseas strategy is centered on a “glocal” approach that reflects the characteristics of each region where
we have operations. We plan to continue growing in China while starting operations in Southeast Asia andother areas where we are not yet active. Expanding e-commerce outside Japan is another goal.
(4) For new businesses, we plan to enlarge our lineup of businesses and sources of earnings, such as by adding a- 8 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

restaurant business, in order to reflect the diversification of our customers ’ life styles and changes in
consumption patterns. Launching and expanding B-to-B businesses is another goal for new businesses. The
B-to-B sector will allow us to target new opportunities in the fashion industry and build new business models
that span different business formats.
By taking actions based on these strategies, we are determined to reach the following targets for the fiscal year
ending in February 2026: sales of 280 billion yen, operating margin of 8% and an ROE of at least 15%.
(5) Basic Policy on Profit Distribution, and Dividend Plans for the Current and Next Fiscal Years
Our goal is to maximize the overall satisfaction of our customers, shareholders, business partners and employees
as we achieve the long-term growth of corporate value (shareholder value) and strengthen the foundation for ourbusinesses by making investments needed to create highly appealing brands, increase the use of digitaltechnologies and achieve business growth on a global scale. For the distribution of earnings to shareholders, weuse a consolidated payout ratio of 30%* as the basic policy.
In addition, we plan to return to shareholders in a timely manner surplus funds accumulated over many years after
making investments for growth and these profit distributions. 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.
The forecast for the year-end dividend for the fiscal year that ended in February 202 3 was determined by taking
into account the stability of dividends and the need for proper balanc e between investments and shareholder
distributions. On December 29, 2022, we increased our net income forecast for the fiscal year that ended in
February 2023 and raised the year-end dividend forecast from 30 yen to 35 yen. As a result, the fiscal year
dividend forecast is 60 yen, 5 yen higher than the dividend for the previous fiscal year.
For the fiscal year ending in February 2024, we plan to pay an annual dividend of 65 yen per share. The dividendof 65 yen is designated as the minimum dividend in the medium-term plan for the final year of this plan, which isthe fiscal year ending in February 2026. Our goal is to pay an even higher dividend by using the medium -term
plan’s initiatives for the growth of sales and earnings.
*Net income before goodwill amortization was used as the standard for earnings goals in prior years. As goodwill
amortization has become insignificant due to purchase price allocation and other reasons, net income is used as
the standard beginning in the fiscal year ending in February 2024.
2. Basic Approach for the Selection of Accounting Standards
Adastria prepares its consolidated financial statements based on the generally accepted accounting principles inJapan 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.

- 9 -Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Million yen)
FY2/23(As of Feb. 28, 2023)

FY2/22(As of Feb. 28, 2022)
AssetsCurrent assets
Cash and deposits

16,976

16,380Notes and accounts receivable-trade

9,878

12,171Inventories

19,25924,679

Other

2,126

2,622

Allowance for doubtful accounts

(71)

(81)

48,16955,772

8,374

8,986

Accumulated depreciation(3,868)(4,185)

Buildings and structures, net

4,506

4,801

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

Store interior equipment

35,22337,705

Accumulated depreciation(30,818)(31,705)

Store interior equipment, net

4,404

6,000

Land

2,366

2,366

Right-of-use assets

5,712

10,949

Accumulated depreciation(2,468)(4,584)Right-of-use assets, net

3,243

6,364

402

292

Construction in progress
Other

3,579

5,109

(2,497)(2,870)

1,082

2,239

16,00522,065

Software

6,417

6,870

Goodwill

922

1,331

Other

3,497

3,706

Total intangible assets

10,836

11,908

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

1,003

1,108

Leasehold and guarantee deposits

15,426

13,545

Deferred tax assets

6,660

7,124

Other

205

165

Allowance for doubtful accounts

(351)

(298)

Total investments and other assets

22,945

21,64549,78755,61997,957111,392

Total non-current assets
Total assets- 10 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

(Million yen)
FY2/23(As of Feb. 28, 2023)

FY2/22(As of Feb. 28, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade

11,282

13,280Electronically recorded obligations-operating

6,620

6,990

Short-term borrowings

95

197

Current portion of long-term borrowings

455

375

Lease obligations

805

1,695

Accounts payable-other

10,44912,114

Income taxes payable

3,247

2,970

-

2,535

Provision for bonuses

2,179

2,112

Provision for point card certificates

1,728

160

Contract liabilities

Other provisions

446

779

Other

1,104

777

Total current liabilities

38,41643,989896

554

Non-current liabilities
Long-term borrowings
Lease obligations

2,758

5,359

Provisions

322

-

Other

600

725

Total non-current liabilities
Total liabilities

4,577

6,639

42,99450,629

2,660

2,660

Net assets
Shareholders’ equity
Share capital
Capital surplus

7,213

7,213

Retained earnings

51,11455,968Treasury shares(7,636)(7,286)

Total shareholders’ equity

53,351

58,555

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

8

95

45

(120)

Foreign currency translation adjustment

558

877

611

852

Non-controlling interests

Total accumulated other comprehensive income

1,000

1,355

Total net assets

54,96360,762

97,957111,392

Total liabilities and net assets- 11 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income
FY2/22(Mar. 1, 2021 – Feb. 28, 2022)(Million yen)
FY2/23(Mar. 1, 2022 – Feb. 28, 2023)

Net sales
Cost of sales

201,582
90,569242,552
109,887

Gross profit

111,012

132,664

Selling, general and administrative expenses
Advertising expenses
Provision of allowance for doubtful accounts
Remuneration for directors (and other officers)
Salaries and bonuses
Provision for bonuses
Welfare expenses
Rents
Lease payments
Depreciation
Amortization of goodwill
Other

8,153
41
497
29,6052,129
4,993
30,571580
6,679
58
21,136

8,037
(42)
682
34,6092,113
5,671
34,967
656
8,185
263
26,003

104,448

121,149

6,564

11,515

11
3
310
71
676
34
549
221

16
2
291
43
231
29
37
231

1,880

883

148
59
45
26

193
106
44
27

Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Income from contribution to facilities
Subsidy income
Revenue from electric power sales
Subsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Commitment fee
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on liquidation of subsidiaries and associates
Reversal of allowance for doubtful accounts
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of investment securities

278

372

8,166

12,026

81
264

-

346

-

600
-

492
100

Total extraordinary losses

600

592

Net income before income taxes

7,911

11,433

Income taxes-current
Income taxes-deferred
Total income taxes

3,124
(129)
2,994

4,028
(373)
3,654

Net income

4,917

7,778

Net income (loss) attributable to non-controlling interests
Net income attributable to owners of the parent- 12 -

(0)

238

4,917

7,540

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

Consolidated Statement of Comprehensive Income
FY2/22(Mar. 1, 2021 – Feb. 28, 2022)(Million yen)
FY2/23(Mar. 1, 2022 – Feb. 28, 2023)

4,917

7,778

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

8

87

10

(165)

Foreign currency translation adjustment

343

319

Total other comprehensive income

363

240

5,280

8,019

5,280

7,663

(0)

355

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable tonon-controlling interests- 13 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

(3) Consolidated Statement of Changes in Equity
FY2/22 (Mar. 1, 2021 – Feb. 28, 2022)

Balance at beginning of period(Million yen)
Shareholders’ equity
Retained
Total shareholders’Share capital
Capital surplus
Treasury sharesearnings
equity2,660
7,213
48,479(7,917)50,435

Changes during period
Dividends of surplus
Net income attributable toowners of the parent
Purchase of treasury shares
Disposal of treasury shares bystock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period(2,282)(2,282)

4,917

4,917
(1)

(1)

282

282
-

-

-

2,634

281

2,915

2,660

7,213

51,114(7,636)53,351(Million yen)

Balance at beginning of period

Accumulated other comprehensive income
Total
NonValuation
Foreign
Deferred gains
accumulated controlling
difference on
currency
or losses on
otherinterests
available-fortranslation
hedgescomprehensive
sale securities
adjustment
income
0
34
231
266
-

Total net
assets

50,701

Changes during period
Dividends of surplus
Net income attributable toowners of the parent
Purchase of treasury shares
Disposal of treasury shares bystock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period-(2,282)

-

4,917

-

(1)

-

282

8

10

326

345

1,000

8

10

326

345

1,000

4,261

8

45

558

611

1,000

54,963- 14 -

1,345

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

FY2/23 (Mar. 1, 2022 – Feb. 28, 2023)

Balance at beginning of period
Cumulative effects of changes
in accounting policies
Restated balance(Million yen)
Shareholders’ equity
Retained
Total shareholders’Share capital
Capital surplus
Treasury sharesearnings
equity2,660
7,213
51,114(7,636)53,351
(175)
2,660

7,213

(175)

50,939(7,636)53,176

Changes during period
Dividends of surplus
Net income attributable toowners of the parent
Purchase of treasury shares
Purchase of treasury shares bystock ownership plan trust
Disposal of treasury shares bystock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period(2,510)(2,510)

7,540

7,540
(1)

(1)

(92)

(92)

443

443
-

-

-

5,029

349

5,379

2,660

7,213

55,968(7,286)58,555(Million yen)

Balance at beginning of period
Cumulative effects of changes
in accounting policies
Restated balance

Accumulated other comprehensive income
Total
NonValuation
Foreign
Deferred gains
accumulated controlling
difference on
currency
or losses on
otherinterests
available-fortranslation
hedgescomprehensive
sale securities
adjustment
income
8
45
558
611
1,000

45

558

611

54,963(175)

8

Total net
assets

1,000

54,787

Changes during period
Dividends of surplus
Net income attributable toowners of the parent
Purchase of treasury shares
Purchase of treasury shares bystock ownership plan trust
Disposal of treasury shares bystock ownership plan trust
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period-(2,510)

-

7,540

-

(1)

-

(92)

-

443

87

(165)

319

240

355

595

87

(165)

319

240

355

5,974

95

(120)

877

852

1,355

60,762- 15 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

(4) Consolidated Statement of Cash Flows
FY2/22(Mar. 1, 2021 – Feb. 28, 2022)(Million yen)
FY2/23(Mar. 1, 2022 – Feb. 28, 2023)

Net income before income taxes

7,911

11,433

Depreciation

7,044

8,796

Impairment loss

600

492

Amortization of goodwill

58

263

Cash flows from operating activities

Loss (gain) on liquidation of subsidiaries and associates

(81)

-

Interest and dividend income

(14)

(19)

Interest expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for point card certificates

148

193

(226)

(42)

1

(72)

443

(98)

Loss (gain) on valuation of investment securities-

100

Decrease (increase) in trade receivables

72(2,019)(3,266)(4,939)

651

2,130

Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable-other

(414)

1,728

Increase (decrease) in accrued consumption taxes(4,021)

232

Other, net(1,883)(182)

Subtotal

7,022

17,995Interest and dividends received

10

26

(148)

(193)

(3,381)(4,367)3,504

13,460Purchase of property, plant and equipment(3,796)(6,988)Purchase of intangible assets

Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities(3,136)(3,520)Purchase of investment securities

(202)

(88)

Payments of leasehold and guarantee deposits(788)(1,000)

723

2,555

(563)

(839)

Proceeds from refund of leasehold and guarantee deposits
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other, net

(16)

(82)

(7,780)(9,963)

Increase (decrease) in short-term borrowings

-

(64)

Proceeds from long-term borrowings-

200

Repayments of long-term borrowings

-

(692)

(2,283)(2,510)

(1)

(93)

(967)

(1,188)-(49)(3,251)(4,398)309

381

Net increase (decrease) in cash and cash equivalents(7,219)(519)

Cash and cash equivalents at beginning of period

24,082

16,863

Cash and cash equivalents at end of period

16,863

16,343

Net cash provided by (used in) investing activities
Cash flows from financing activities

Dividends paid
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- 16 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in the Scope of Consolidation or Application of the Equity Method
Important changes in the scope of consolidation
Following the acquisition of shares in OPEN AND NATURAL Inc. through the Company ’s consolidated
subsidiary BUZZWIT Co., Ltd. on March 31, 2022, OPEN AND NATURAL became a consolidated subsidiary(sub-subsidiary) from the first quarter of the current fiscal year. However, only the balance sheet of OPEN AND
NATURAL was included in the consolidation as the deemed acquisition date was April 30, 2022 and the period todate of the closure of quarterly consolidated accounts did not exceed three months. The statement of income ofthis company has been included in the consolidation since the second quarter of the current fiscal year.
Change of fiscal year of consolidated subsidiary
Beginning with the fiscal year that ended in February 2023, the fiscal year end of consolidated subsidiary Zetton,
Inc. was changed from the end of February to the end of January. As a result, the consolidated financial
statements include the 11-month period of Zetton from March 2022 to January 2023.
In the fiscal year that ended in February 2023, consolidated subsidiaries BUZZWIT Co., Ltd. and ELEMENTRULE Co., Ltd. and four other subsidiaries in Japan changed their fiscal year end from the end of January to theend of February for consistency with the consolidated financial statements. As a result, the consolidated statementof income includes the sales and earnings of these six companies for the 13 -month period from February 2022 toFebruary 2023.
Changes in Accounting Policies
Application of Accounting Standards for Revenue Recognition
The Company has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board ofJapan (ASBJ) Statement No. 29, March 31, 2020) and other standards from the beginning of the current fiscal
year. Based on these standards, revenue expected to be received in exchange for the provision of goods andservices is recognized when the control of the goods and services is transferred to customers. In prior years , toprepare for the redemption of the points granted on sales to customers, the Adastria Group recorded a provision
for point card certificates in an amount that reflects the performance of obligation related to the expected
redemption of points in the future. The Company has changed to a method that recognizes the points granted as
performance obligations, allocates the transaction price, and records it as contract liability.
The application of the Accounting Standard for Revenue Recognition is pursuant t o the transitional treatment set
forth in the proviso of Paragraph 84 of this standard. The cumulative effect of the retrospective application,
assuming the new accounting policy had been applied to periods prior to the beginning of the current fiscal year ,was added to or subtracted from retained earnings at the beginning of the current fiscal year, and then the new
accounting policy was applied beginning with this amount of retained earnings.
As a result, compared with the previous accounting method, the application of the new standard resulted in
reductions of 2,378 million yen in sales, 134 million yen in cost of sales, 2,244 million yen in selling, general andadministrative expenses. However, there were no effects on operating profit, ordinary profit a nd net income
attributable to owners of the parent. In addition, the new standard reduced retained earnings at the beginning of
the current fiscal year by 114 million yen.
In accordance with the transitional treatment set forth in Paragraph 89 -2 of the Accounting Standard for Revenue
Recognition, reclassification based on the new presentation method has not been carried out for the previous
fiscal year.

- 17 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

Changes in valuation of inventories
The Company and certain consolidated subsidiaries previously valued its merchandise mainly at cost based on thespecific identification method (the amount shown on the balance sheet was calculated by writing down the bookvalue based on a decline in profitability). However, from the current fiscal year, the cost method has beenchanged to a cost method mainly based on the weighted average method (the value on the balance sheet is
calculated by writing down the book value based on a decline in profitability).
The valuation method was changed in view of further globalization of the Group’s business and taking theopportunity of upgrade of its backbone IT system.
The effect of this change is insignificant.
Accounting for leases: Application of ASC No. 842 [Leases]
Foreign subsidiaries, that have adopted the U.S. accounting standards, have started applying US GAAP ASC No.
842, Leases (ASC No. 842) standard from the current fiscal year. The cumulative effect of the adoption of ASC
No. 842 is recognized at the date of adoption and is an adjustment to retained earnings and leas e liabilities related
to the right-of-use assets at the beginning of the current fiscal year.
The effect of this change on profit in the current fiscal year is insignificant.
Application of the Accounting Standard for Measurement of Fair Value
The Company has applied the Accounting Standard for Measurement of Fair Value, etc. (ASBJ Statement No. 30,
July 4, 2019) from the beginning of the current fiscal year, and has applied the new accounting policies set forth
by the Accounting Standard for Measurement of Fair Value, etc. prospectively in accordance with the transitional
treatment in Paragraph 19 of the Accounting Standard for Measurement of Fair Value and Paragraph 44 -2 of the
Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effect of theapplication of these standards on the consolidated financial statements.
Segment Information
1.

Overview of reportable segment

The Adastria Group defines reportable segments as businesses for which financial details can be co mpiled; theBoard of Directors will review this information on a periodic basis in order to assist with decisions aboutallocating resources and evaluating the performance.
The Adastria Group is engaged primarily in the planning and sales of clothing and r elated merchandise. The
reportable segment is the Apparel and Sundry Goods-related Business.
Information related to revisions for reportable segments
In prior years, there was no segment information because the Adastria Group had only the single reportablesegment of planning and sales of clothing and related merchandise. There was no “other” segment because thisinformation was immaterial. Beginning with the fiscal year ended in February 2023, segment information ispresented because the importance of the food and beverage business within the Adastria Group has increased.
Segment information for the previous fiscal year that was prepared by using the same segment classification
method used for the current fiscal year is not presented because activities other than the planning and sales ofclothing and related merchandise is immaterial.
In the previous fiscal year, the planning and sales of clothing and related material was the only significant
segment. As a result, segment information prepared by using the same segment classification method used for theprevious fiscal year is not presented.
2.

Calculation methods for sales, profits/losses, assets and other items for each reportable segment

The accounting treatment methods for reportable segments are generally the same as accounting principles andprocedures used for the preparation of the consolidated financial statements.
- 18 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal Year

Profits for reportable segments are generally operating profit figures. Profits on and transfer amount s ofinter-segment transactions within the Group are based on current market prices.
3.

Information related to sales, profits/losses, assets and other items for each reportable segment

FY2/22 (Mar. 1, 2021 – Feb. 28, 2022)
The Adastria Group has only a single business segment, which is the planning and sales of clothing and related
merchandise. There is no others segment because the levels of sales and earnings of other activities are
insignificant.
FY2/23 (Mar. 1, 2022 – Feb. 28, 2023)(Million yen)
Reportablesegment
Apparel andSundryGoods-related
Business

Other(Note 1)

Amounts shown on
consolidated
statement of income(Note 3)Adjustment(Note 2)Total

Net sales
External sales
Inter-segment sales and transfers
Total

232,9259,626

242,552-

242,552

1

39

40

(40)

-

232,927

9,665

242,593(40)

242,552

Segment profit (loss)

12,289(263)

12,026-

12,026

Segment assets

104,522

8,520

113,043(1,651)

111,392

8,124

671

8,796

-

8,796

Other items
Depreciation

Amortization of goodwill
116
147
263
263
Increase in property, plant and15,256
2,218
17,474－
17,474equipment and intangible assets
Notes: 1. “Other” represents the businesses which are not included in the reportable segment and mainly consists of Food andBeverage Business.
2. The above adjustments include the following items.
(1) The amount of adjustment to segment profit (loss) is an adjustment to unrealized profit related to inter-segment
transactions.
(2) The amount of adjustment to segment assets is elimination for inter-segment transactions.
3. The segment profit is consistent with the ordinary profit of the Consolidated Statement of Income.
4. The segment profit (loss) includes corporate expenses that are allocated to each reportable segment.
5. Depreciation and increase in property, plant and equipment and intangible assets include amortization of long-term
prepaid expenses.

- 19 -

Adastria Co., Ltd. (2685) Summary of Financial Results for February 2023 Fiscal YearPer Share Information

Net assets per share

FY2/22(Mar. 1, 2021 – Feb. 28, 2022)
1,192.62(Yen)
FY2/23(Mar. 1, 2022 – Feb. 28, 2023)
1,309.96

Net income per share
108.72
166.37
Notes: 1. Diluted net income per share is not presented since Adastria has no outstanding dilutive securities.
2. The Adastria stock held by the trust account recorded as treasury shares under shareholders ’ equity is included intreasury shares deducted from the number of shares that is used to calculate the average number of shares outstanding
during the period for the determination of net income per share, and is included in treasury shares that is deductedfrom the number of shares outstanding at the end of the period for the determination of net assets per share.
For the determination of net income per share, the average numbers of treasury shares outstanding that were deducted
were 423K for FY2/22 and 329K for FY2/23. For the determination of net assets per share, the numbers of treasury
shares deducted were 405K for FY2/22 and 301K for FY2/23.
3. The basis of calculating the net income per share is as follows.

Net income attributable to owners of the parent

FY2/22(Mar. 1, 2021 – Feb. 28, 2022)
4,917(Million yen)
FY2/23(Mar. 1, 2022 – Feb. 28, 2023)
7,540

-

-

4,917

7,540

45,22945,322

Amount not available to common stockholders
Net income attributable to owners of the parent
applicable to common shares
Average number of common shares outstanding
during the period (Thousand shares)

Subsequent Events
Not applicable.

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.

- 20 -