aderans holdings co., ltd. - ir pocketpdf.irpocket.com/c8170/kzoo/r52z/hh76.pdf · 2013. 5. 8. ·...

(Unaudited) 1

April 15, 2010 ADERANS HOLDINGS CO., LTD.

Financial Statements (Unaudited) For the Fiscal Year ended February 28, 2010

(Translated from the Japanese original) Corporate Information Code: 8170 Listings: First Section of the Tokyo Stock Exchange (URL http://aderans.co.jp/hd/) Representative: Tadao Otsuki President and Chief Operating Officer Contact: Michiyoshi Takahashi General Manager, Corporate Communications Office Telephone: +81-3-3350-3268 Anticipated date of annual general meeting of shareholders: May 27, 2010 Expected date of payment for dividends: ― Anticipated date for filing Yuka Shoken Hokokusho (a Japanese-language business report): May 27, 2010

Millions of yen (Amounts rounded down) 1. Consolidated Performance for Fiscal 2010 (March 1, 2009 through February 28, 2010) (1) Consolidated Operating Results (Percentages represent changes from corresponding period of previous year) Net sales Operating income (loss) Ordinary profit (loss) Net loss Fiscal 2010 Fiscal 2009

Millions of yen 57,355 70,463

% (18.6) (6.0)

Millions of yen (5,264)

2,508

% ―

(38.3)


2,472

% ―

(43.9)

Millions of yen(9,851) (2,172)

% ― ―

Net income (loss)

per share Fully diluted net income per share

Return (net loss) on equity

Return (ordinary income

(loss)) on assets

Return (operating income

(loss)) on sales

Fiscal 2010 Fiscal 2009

Yen (261.98) (56.11)

Yen ― ―

% (17.8) (3.3)

% (7.7) 3.0

% (9.2) 3.6

(Note) Equity in earnings or losses of affiliates: ― million yen (February 28, 2010) ― million yen (February 28, 2009) (2) Consolidated Financial Position Total assets Net assets Equity ratio Net assets

per share Fiscal 2010 Fiscal 2009



% 77.8 80.5

Yen 1,339.98 1,582.09

(Note) Equity capital : 49,323 million yen (February 28, 2010) 61,255 million yen (February 28, 2009) (3) Consolidated Cash Flows Cash flows from

operating activities Cash flows from

investing activities Cash flows from

financing activities Cash and cash equivalents

at the end of period Fiscal 2010 Fiscal 2009


1,963

Millions of yen 7,610 (335)


(2,177)


(Unaudited) 2

2. Payment of Dividends Dividends per share First

quarter- end

At end of first

half

Third quarter-

end Year-end For the

year

Total dividends(For the year)

Dividend payout ratio

(Consolidated)

Dividends on net assets

(Consolidated)


Yen

― ―

Yen 5.00 0.00

Yen ― ―

Yen 15.00 0.00

Yen 20.00 0.00

Millions of yen 774 ―

%

― ―

%

1.2 ―

Fiscal 2011 (Estimated)

― ― ― ― ―

―

Year-end dividend for the fiscal year ending February 28, 2010 has not yet determined. 3. Anticipated Consolidated Results for Fiscal 2011 (March 1, 2010 through February 28, 2011)

(Percentages represent changes from corresponding period of previous year) Net sales Operating loss Ordinary loss First two quarters

Millions of yen 26,800

% (11.9)


% ―


% ―

Full year 57,800 0.8 (2,900) ― (2,700) ―

Net loss Net loss First two quarters


% ―

Yen

(119.54) Full year (4,900) ― (133.12) 4. Others (1) Major changes in scope of consolidation and application of equity method during the term: None nges in scope of consolidation and application of equity method during the term: None (2) Major changes in rules for the preparation of consolidated financial statements anges in rules for the preparation of consolidated financial statements (Changes in Significant Accounting Policies for Consolidated Financial Statements) (a) Changes due to the revision of accounting standard: Yes (b) Changes other than (a): Yes

(Note) Please refer to “Changes in Significant Items Regarding the Preparation of Consolidated Financial Statements” on page 15 for details.

(3) Number of outstanding shares (common stock) ①Number of outstanding shares, including treasury stock, at end of term:

40,213,388 shares (February 28, 2010) 41,713,388 shares (February 28, 2009)

②Amount of treasury stock at end of term:

3,404,124 shares (February 28, 2009) 2,995,260 shares (February 29, 2008)

(Note) Please refer to “Per Share Data” on page 34, regarding the number of shares used as the basis for calculating

consolidated net income per share.

(Unaudited) 3

(Reference) Non-Consolidated Financial Results for Fiscal 2010 (March 1, 2009 through February 28, 2010) 1. Non-Consolidated Performance for Fiscal 2010 (March 1, 2009 through February 28, 2010) (1) Non-Consolidated Operating Results (Percentages represent changes from corresponding period of previous year)

Net sales Operating income Ordinary profit Net income Fiscal 2010 Fiscal 2009

Millions of yen

1,730 1,412

%

22.5 （93.2)

Millions of yen

(1,630) (1,431)

%

― ―

Millions of yen

511 2,890

%

(82.3) 29.4

Millions of yen

(3,278) (10)

%

― ―

Net income

per share Fully diluted net

income per share


Yen (87.18) (0.26)

Yen ― ―

(2) Non-Consolidated Financial Position Total assets Net assets Shareholders’ equity ratio Net assets per share Fiscal 2010 Fiscal 2009

Yen in millions 55,626 60,204

Yen in millions 53,148 59,365

%

95.5 98.6

Yen

1,443.88 1,533.28

(Note) Shareholders’ equity : 53,148 million yen (February 28, 2010) 59,365 million yen (February 28, 2009)

2. Anticipated Non-Consolidated Performance for Fiscal 2011 (March 1, 2010 through February 28, 2011) A non-consolidated performance forecast is not presented here because management feels such estimates are not particularly important from an investor information perspective. Disclaimer regarding performance outlook The estimates above are based on information available to management as of the date on which these performance-related figures were disclosed, and various factors may cause actual results to differ from these estimates. Please refer to page 5, regarding assumption of consolidated performance forecasts and other related matters.

(Unaudited) 4

1. Operating Results (1) Analysis of Operating Results (i) Consolidated performance In fiscal 2010, ended February 28, 2010, challenges characterized the operating environment. Lackluster economic conditions at home and abroad, caused by deterioration of financial markets around the world, showed no sign of improving. In Japan, the situation was compounded by a decline in stock prices, due to deterioration in corporate earnings as well as growing unemployment and a decline in personal spending.

Against this backdrop, Aderans Holdings concentrated management resources into wig-related operations—representing the Group’s core domestic business—and endeavored to bring about a performance recovery with a new marketing strategy. This strategy includes redesigned corporate logos, the consolidation of ladies’ wig brands under the Fontaine name, enhanced product development, a new salon concept and measures to boost client satisfaction.

Overseas, the spotlight was on the Hair-Transplant Business in the United States, where sluggish personal spending has had a particularly negative impact on segment performance. Companies in the Hair-Transplant Business maintained concerted efforts to build a complete profit platform to underpin business growth.

Unfortunately, consolidated net sales for fiscal 2010 fell 18.6% year-on-year, to ¥57,355 million. On the income front, red was the dominant color. Instead of operating income, at ¥258 million a year earlier, the Company posted an operating loss of ¥5,264 million, and an ordinary loss of ¥5,351 million replaced ordinary income of ¥2,472 million. The Company booked ¥3,065 million in impairment losses, including those on Company-owned buildings intended for sale, which contributed to a net loss of ¥9,851 million, or ¥7,678 million deeper into the red.

Results by geographical segment are as follows: <Japan> Despite a drastic review of marketing strategy and steady progress on measures to boost client satisfaction, which generated signs of recovery in the fourth quarter, sales of custom-made wigs fell 23.4%, to ¥19,240 million. This is primarily because widespread curbs on advertising and promotional activities prevented Aderans and Fontaine from elevating respective corporate profiles—a situation that persisted until November 2009 when advertising efforts resumed in conjunction with new product introductions. Sales of ready-made wigs have been looking up since the November 2009 consolidation of ladies’ wig brands under the Fontaine name, but sales for fiscal 2010 decreased 8.5% over fiscal 2009, to ¥8,808 million. This is largely due to poor replacement demand, as the recession forced consumers to keep a tight reign on personal spending and reversed the upward trend in sales that characterized the previous year. In addition, fewer sales points were in operation, paralleling the closure of department stores at which Aderans and Fontaine products were sold.

Sales of other hair-related products decreased 11.8%, to ¥3,555 million. Service revenues shrank 9.8%, to ¥8,792 million. Revenue from other business fell 12.6%, to ¥409 million. Intersegment sales dropped 19.8%, to ¥223 million.

Given this downward pressure, aggregate net sales from operations in Japan were held to ¥41,029 million, down 16.7%, or ¥8,231 million, from fiscal 2009. Efforts to reduce costs associated with the closure of unprofitable locations and to limit selling, general and administrative expenses, particularly advertising and promotional costs, were insufficient to offset the drop in net sales, and the lower starting point inevitably led to an operating loss of ¥3,576 million. To compare, the operating loss was ¥4,177 million in fiscal 2009.

<Asia, excluding Japan> In Taiwan, where demand from clients outside the Aderans Group is key to higher sales, a lawsuit related to healthy hair growth services was brought against a competitor in that market. This situation tarnished the entire market, adversely impacting the activities of all participants, including Aderans’ local subsidiary. As a result, sales of custom-made wigs slipped 18.1% over the corresponding period a year ago, to ¥190 million. Sales of ready-made wigs tumbled 42.1%, to ¥33 million. Sales of other hair-related products decreased 32.5%, to ¥27 million. Service revenues retreated 28.0%, to ¥72 million. Intersegment sales dropped 32.4%, to ¥2,949 million.

Overall, aggregate net sales from operations in Asia, excluding Japan, settled at ¥3,274 million, down 31.7%, or ¥1,516 million, from fiscal 2009. Operating income shrank 65.9%, or ¥170 million, to ¥88 million.

(Unaudited) 5

<North America> The Overseas Core Business is essentially the wig business abroad. Demand for products that had contributed nicely to sales in fiscal 2009 faltered, reflecting a slowdown in order activity through some marketing channels in fiscal 2010. In addition, sluggish business conditions dampened interest in newly introduced products, squeezing potential sales. In this environment, sales of ready-made wigs decreased 13.2%, to ¥2,096 million, and sales of custom-made wigs fell 13.1%, to ¥245 million.

Service revenues from the Hair-Transplant Business reached ¥9,501 million, down 25.5%, owing to the effects of recession in the United States, which caused people to cut back on personal spending, and also owing to tighter advertising budgets at local subsidiaries under the Aderans Holdings umbrella.

Sales of other hair-related products tumbled 39.0%, to ¥1,008 million. Intersegment sales decreased 18.2%, to ¥1,718 million. Aggregate net sales from operations in North America amounted to ¥14,570 million, down ¥3,984 million, or 21.5%, from fiscal

2009. Profitability improved through a review of selling, general and administrative expenses, with an emphasis on securing a firmer profit base hinging on the Hair-Transplant Business. While still in the red, the operating loss for fiscal 2010, at ¥526 million, was ¥408 million less than in fiscal 2009. (4) Europe Demand for the Group’s integrated collection of wigs for Europe was solid, complemented by favorable interest in wigs for medical use. On a euro basis, sales remained on a par with the amount recorded a year ago. But yen appreciation squeezed results on a yen basis, pulling sales of custom-made wigs down 16.4%, to ¥428 million. Sales of ready-made wigs fell 15.6%, to ¥2,217 million. Sales of other hair-related products slipped 10.1%, to ¥616 million. Service revenues decreased 12.0%, to ¥110 million.

Consequently, aggregate net sales from operations in Europe amounted to ¥3,373 million, down ¥578 million, or 14.6%, compared with the corresponding period a year ago. Operating income came to ¥140 million, down ¥100 million, or 41.7%. (ii) Outlook for fiscal 2011 Economic conditions and market environments at home and abroad are unlikely to improve much in fiscal 2011. For the Group to realize management reforms designed to promote fiscal recovery amid persistent challenges, domestic operations will be reorganized, culminating in the merger of wholly owned subsidiaries into Aderans Holdings on September 1, 2010. The Group will also strive to implement various approaches based on the new marketing strategy introduced at the end of fiscal 2010, which should lead to higher sales of custom-made and ready-made wigs. The Overseas Core Business is expected to show favorable results, and the Hair-Transplant Business should rebound well into the black.

With these factors in mind, management conservatively estimates a 0.8% increase in consolidated net sales, to ¥57.8 billion. On the income front, the Group is likely to see more red ink, but the shade will be lighter. Management anticipates an operating loss of ¥2.9 billion, compared with ¥5,264 million in fiscal 2010, an ordinary loss of ¥2.7 billion, compared with ¥5,351 million, and a net loss of ¥4.9 billion, compared with ¥9,851 million.

(Unaudited) 6

2. Consolidated Financial Position (i) Status of assets, liabilities and net assets As of February 28, 2010, total assets stood at ¥63,369 million, down ¥12,732 million from February 28, 2009.

Total current assets came to ¥26,738 million, down ¥961 million from February 28, 2009. This change is largely due to a ¥4,392 million decrease in marketable securities and a ¥1,351 million decrease in notes and accounts receivable, which overshadowed an increase of ¥5,440 million in cash and deposits.

Total fixed assets amounted to ¥36,631 million, down ¥11,771 million. Tangible fixed assets accounted for ¥21,913 million, down ¥4,052 million, and intangible fixed assets accounted for ¥4,363 million, down ¥569 million. Investments and other fixed assets represented ¥10,354 million, down ¥7,149 million.

Total liabilities stood at ¥13,950 million, down ¥807 million from February 28, 2009. Total current liabilities came to ¥9,813 million, down ¥181 million. This change reflects increases of ¥136 million in deferred tax

liabilities, ¥277 million in business restructuring losses, against decreases of ¥758 million in advances received, ¥960 million in short-term debt and ¥763 million in notes and accounts payable.

Total net assets settled at ¥49,418 million, down ¥11,925 million from February 28, 2009. This change is primarily due to a ¥15,189 million decrease in retained earnings, which completely cancelled out increases of ¥1,027 million in foreign currency transaction adjustments and ¥146 million in unrealized gain on available-for-sale securities (ii) Cash Flow Analysis As of February 28, 2010, cash and cash equivalents stood at ¥15,115 million, up ¥3,241 million or 27.3%, from a year earlier. (Cash flow from operating activities) The Company marked a turnaround in cash flow from operating activities, with a net cash used position of ¥1,886 million, compared with ¥1,963 million in net cash provided by operating activities a year earlier. The ¥3,849 million change reflects a loss of ¥9,609 million before income taxes and minority interests, or ¥7,975 million deeper than the loss recorded in fiscal 2009, as well as ¥3,065 million in impairment losses and ¥2,501 million in depreciation and amortization. This cash outflow completely negated the benefits of a ¥3,212 million decrease in income taxes, which were just ¥619 million. (Cash flow from investing activities) The Company recorded ¥4,293 million in proceeds from the sale of marketable securities, ¥4,469 million in proceeds from the sale of investment securities, and ¥2.0 billion in proceeds from the cancellation of long-term time deposits. The Company applied ¥1,995 million toward the purchase of marketable securities and ¥1,264 million toward the purchase of property, plant and equipment. The difference between proceeds and purchases amounted to a positive ¥7,945 million, culminating in net cash provided by investing activities of ¥7,610 million, a U-turn from ¥335 million used in investing activities in fiscal 2009. (Cash flow from financing activities) The Company used ¥2.5 billion to purchase treasury stock and ¥580 million to pay dividends. Net cash used in financing activities came to ¥3,064 million, up ¥887 million from a year earlier.

(Reference) Ratios for cash flow analysis are as follows: Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 Fiscal 2010 Equity ratio (%) 79.1 79.3 77.9 80.5 77.8 Equity ratio (%) (market value basis) 144.5 128.8 81.5 34.4 61.4

Interest-bearing debt/cash flow ratio (%) － 20.0 10.6 58.7 －

Interest coverage ratio (times) 945 175 56 24 － (Note) 1. The ratios above are calculated based on the following consolidated figures.

・Equity ratio: Equity capital/Total assets ・Equity ratio (market value basis): Aggregate market price of stocks/Total assets ・Interest-bearing debt/cash flow ratio: Interest-bearing debt/net cash provided by operating activities ・Interest coverage ratio: Operating cash flows/Interest paid

2. Aggregate market price of stocks is calculated using closing stock price at fiscal year-end × number of outstanding shares at fiscal year-end (after deduction of treasury stocks)

3. Interest-bearing debt: Amount of consolidated balance-sheet liabilities with interest paid. 4. Interest paid: As presented on the Consolidated Statements of Cash Flows.

5. Negative cash flow from operations in fiscal 2010 precludes disclosure of an interest-bearing debt to cash flow ratio and an interest-coverage ratio.

(Unaudited) 7

(iii) Basic policy for the appropriation of profits and dividends for the fiscal period under review and the current fiscal period One of the Company’s top management priorities is the return of profits to shareholders. Our primary objective is, of course, to sustain dividends at a high level as well as to return profits to shareholders through the repurchase of treasury stock. Our targets are a payout ratio of 50% and a shareholder return ratio of 100%, based on consolidated net income.

It is with regret that management has decided to refrain from distributing year-end dividends for fiscal 2010. The decision was made in view of declining net sales, which reflects the prolonged business downturn as well as a net loss, owing to the booking of extrordinary expenses paralleling business restructuring. The operating environment is likely to remain challenging in fiscal 2011, and management has not made a decision on possible

resumption in dividend distribution yet. An announcement will be made as soon as management has considered all factors, especially performance and financial standing.

(iv) Business and other risks Because no risks that warrant immediate notification exist, disclosure is omitted from the most recent Yuka Shoken Hokokusho -- a Japanese-language business report -- submitted on May 29, 2009. 2. Aderans Holdings Co., Ltd. and its Subsidiaries (The Aderans Group) Because no significant changes have occurred in the composition of the Group or its business content since submission of the most recent Yuka Shoken Hokokusho — a Japanese-language business report — on May 29, 2009, the section on subsidiaries and their business activities has been omitted 3. Management Policies Management policies have been excluded because there is no significant change in the content of policies presented in the Financial Statements (Unaudited) for the fiscal year ended February 29, 2008 (as released on April 17, 2008).

The Company’s disclosure documents can be found at the following URLs: Aderans Holdings website: http://www.aderans.co.jp/hd/

Tokyo Stock Exchange website: http://www.tse.or.jp/listing/compsearch

(Unaudited) 8

4. Consolidated Financial Statements (1) Consolidated Balance Sheets

Fiscal 2009 As of

February 28, 2009

Fiscal 2010 As of

February 28, 2010

Note No. Millions of yen Millions of yen

Assets Current assets Cash and deposits 9,941 15,381 Notes and accounts receivable - trade 5,471 4,120 Marketable securities 4,392 ―

Inventories 4,513 ―

Commercial goods and finished goods ― 2,486 Work in process ― 156 Raw materials and supplies ― 1,258 Deferred tax assets 1,268 1,209 Others 2,161 2,181 Allowance for doubtful accounts (48) (57)

27,700 26,738Total current assets Fixed assets

Tangible fixed assets

Buildings and structures ＊2 30,936 27,753 Accumulated depreciation (18,508) (17,988) Buildings and structures (net) 12,428 9,765 Land ＊2 11,133 10,211 Others 7,887 7,437 Accumulated depreciation (5,483) (5,499) Others (net) 2,404 1,937Total Tangible fixed assets 25,966 21,913 Intangible fixed assets Goodwill 1,327 841 Others 3,605 3,522Total Intangible fixed assets 4,932 4,363 Investments and other fixed assets Investment securities ＊1 5,493 1,269 Guarantee deposits 3,982 3,541 Deferred tax assets 4,458 4,982 Others ＊1 3,728 1,024 Allowance for doubtful accounts (157) (463)Total investments and other fixed assets Total fixed assets

217,50348,402

10,35436,631

Total assets 76,102 63,369

(Unaudited) 9

Fiscal 2009 As of

February 28, 2009

Fiscal 2010 As of

February 28, 2010


Liabilities Current liabilities Notes and accounts payable – trade 1,236 473 Short-term debt ＊2 960 ― Accrued corporate and other taxes 406 362 Deferred tax liabilities 2 138 Allowance for employees’ bonuses 1,252 1,255 Allowance for product guarantee 145 103 Allowance for returned goods 91 95 Allowance for losses on liquidation

of affiliates 0 ―

Allowance for losses on debt guarantees of affiliates

24 ―

Allowance for business restructuring losses

― 277

Advances received 2,157 1,399 Accounts payable ― 3,374 Others 3,717 2,333Total current liabilities 9,995 9,813 Fixed liabilities Long-term debt 44 ― Allowance for employees’ severance

and retirement benefits 3,058 2,817

Long-term accounts payable 57 9 Deferred tax liabilities 6 5 Others 1,595 1,303Total fixed liabilities 4,763 4,137

Total liabilities 14,758 13,950

12,94413,15748,225(9,034)

12,94413,19333,035(3,986)

65,292 52,186

(145)

(3,891)

0

(2,864)

(4,036) (2,863)

Net Assets Shareholders’ equity Common stock Capital surplus Earned surplus Treasury stock Total shareholders’ equity Other comprehensive income Unrealized gains (losses) on investment securities Foreign currency translation adjustments Total other comprehensive income Minority interests

88 95Total net assets 61,344 49,418

Total liabilities and net assets 76,102 63,369

(Unaudited) 10

(2) Consolidated Statements of Income

Fiscal 2009 (March 1, 2008 through

February 28, 2009)


February 28, 2010)


Net sales 70,463 57,355Cost of sales ＊1,2 14,881 12,867 Gross profit 55,582 44,488

Selling, general and administrative expenses

＊3,4 53,074 49,753

Operating income (loss) 2,508 (5,264) Non-operating income 1,027 869 Interest received 234 103 Dividends received 61 47 Rent on real estate 407 382 Others 324 334 Non-operating expenses 1,062 (5,351) Interest paid 81 66 Rent on real estate 311 327 Loss on disposal of inventory 162 ― Foreign exchange losses 220 192 Taxes and public charges 120 107 Costs associated with closure of call

centers ― 143

Others 166 118 Ordinary profit (loss) 2,472 (5,351)

Extraordinary income 233 1,463 Gains on sales of fixed assets ＊5 5 126 Gains on reversal of allowance for

doubtful accounts

3 6

Gains on sales of investment securities ― 1,329 Return of profit gained through

short-term trading ＊6 59 ―

Gains on reversal of long-term account payable

140 ―

Gains on reversal of allowance for losses on liquidation of affiliates

25 ―

Others 0 1 Extraordinary expenses 4,340 5,721 Losses on prior year account

Losses on sale of fixed assets ＊7―20

33637

Impairment loss ＊9 2,138 3,065 Losses on disposal of fixed assets ＊8 330 378 Unrealized loss on investment

securities 1,504 ―

Transfer to allowance for doubtful accounts

3 448

Loss on sales of investment securities ― 650 Transfer to allowance for business

restructuring losses ― 277

Losses on business restructuring ― 453 Others 342 72 Income (loss) before income taxes (1,634) (9,609) Corporate, inhabitant and business

taxes

2,069

549 Adjustments to corporate and other

taxes (1,514) (299)

Total income taxes 554 250 Minority profit (loss) (16) (8)

Net income(loss) (2,172) (9,851)

(Unaudited) 11

(3) Consolidated Statements of Changes in Shareholders’ Equity Fiscal 2009

(March 1, 2008 through February 28, 2009)


February 28, 2010)

Millions of yen Millions of yen Shareholders’ Equity

Common Stock Balance at February 29, 2009

Changes during fiscal 2010 12,944 12,944

Total of items during fiscal year ― ― Balance at February 29, 2010 12,944 12,944

Capital Surplus Balance at February 29, 2009

Changes during fiscal 2010 Recognized cost of share based

payment stock option

13,157

―

13,157

36

― 36 Total of items during fiscal year Balance at February 29, 2010 13,157 13,193

Retained Earnings Balance at February 29, 2009 Increase (decrease) due to the change

of accounting treatment of overseas subsidiaries

52,528―

48,225(209)

Changes during fiscal 2010 Dividends from surplus (2,129) (580) Net income (loss) (2.172) (9,851) Disposal of treasury stock (0) (0) Cancellation of treasury stock ― (4,547) Total of items during fiscal year (4,302) (14,979) Balance at February 29, 2010 48,225 33,035 Treasury Stock Balance at February 29, 2009 (9,030) (9,034) Changes during fiscal 2010 Purchases of treasury stock (4) (2,500) Disposal of treasury stock 1 0 Cancellation of treasury stock ― 4,547

Total of items during fiscal year (3) 2,047 Balance at February 29, 2010 (9,034) (6,986)

Total of Shareholders’ Equity Balance at February 29, 2009 Increase (decrease) due to the change


69,598―

65,292(209)

Changes during fiscal 2010 Dividends from surplus (2,129) (580) Net income (loss) (2,172) (9,851) Purchases of treasury stock (4) (2,500) Disposal of treasury stock 0 0 Cancellation of treasury stock ― ― Recognized cost of share based

payment stock option ― 36

Total of items during fiscal year (4,306) (12,895)65,292 52,186

Balance at February 29, 2010

(Unaudited) 12


February 28, 2009)


February 28, 2010)

Millions of yen Millions of yen Unrealized Gain (Loss) on Securities

and Foreign Currency Translation Adjustments

Unrealized gain (loss) on other securities

Balance at February 29, 2009 9 (145) Changes during fiscal 2010 Net changes of items other than

shareholders’ equity during fiscal year

(155) 146

Total of items during fiscal year (155) 146 Balance at February 29, 2010 (145) 0 Translation adjustments Balance at February 29, 2009 740 (3,891) Changes during fiscal 2010 Net changes of items other than


(4,631) 1,027

Total of items during fiscal year (4,631) 1,027 Balance at February 29, 2010 (3,891) (2,864) Net change Balance at February 29, 2009 Changes during fiscal 2010 Net changes of items other than


749

(4,786)

(4,036)

1,173

Total of items during fiscal year (4,786) 1,173 Balance at February 29, 2010 (4,036) (2,863) Stock acquisition rights Balance at February 29, 2009 Changes during fiscal 2010 Net changes of items other than


0

(0)

―

―

Total of items during fiscal year (0) ― Balance at February 29, 2010 ― ― Minority Interests Balance at February 29, 2009 Changes during fiscal 2010 Net changes of items other than


77

10

88

6

Total of items during fiscal year 10 6 Balance at February 29, 2010 88 95 Total Net Assets Balance at February 29, 2009 Increase (decrease) due to the change


Changes during fiscal 2010 Dividends from surplus Net income (loss) Purchases of treasury stock Disposal of treasury stock Cancellation of treasury stock Recognized cost of share based

payment stock option Net changes of items other than


70,426―

(2,129)(2,172)

(4)0

――

(4,776)

61,344(209)

(580)(9,851)(2,500)

0―36

1,180

Total of items during fiscal year (9,082) (11,715) Balance at February 29, 2010 61,344 49,418

(Unaudited) 13

(4) Consolidated Statements of Cash Flows


February 28, 2009)


February 28, 2010) Note No. Millions of yen Millions of yen

1. Cash flows from operating activities Income (loss) before income taxes (1,634) (9,609) Depreciation and amortization 2,836 2,501 Impairment loss 2,138 3,065 Loss on disposal of fixed assets 469 560 Amortization of goodwill 646 389 Change in allowance for employees’ bonuses (197) 3 Decrease in allowance for directors’ bonuses (10) ―

Increase in employees’ severance and retirement benefits

(218) (196)

Loss on valuation of investment securities 1,504 ―

Gain on sale of investment securities ― (678) Interest and dividends received (295) (151) Interest paid 81 66 Increase in notes and accounts receivable 162 1,841 Change in inventories (260) 669 Change in notes and accounts payable 109 (902) Decrease in guarantee deposits 1 309 Others 222 776 Subtotal 5,556 (1,353) Proceeds from interest and dividend income 319 150 Payment of interest (81) (63) Payment of income taxes (3,831) (619) Net cash (used in) provided by operating activities 1,963 (1,886)2. Cash flows from investing activities Payment for purchase of time deposit (103) (104) Payment for purchase of marketable securities (1,993) (1,995) Proceeds from sales of marketable securities 4,489 4,293 Payment for purchase of property, plant and

equipment (3,681) (1,264)

Payment for purchase of intangible fixed assets (181) (230) Payment for purchase of investment securities (303) (4) Proceeds from sales of investment securities 1,003 4,469 Payment for sales of subsidiaries’ stock due to

change of scope of consolidation ＊2 ― (48)

Proceeds from withdrawals of long-term deposits ― 2,000 Others 434 494 Net cash provided by (used in) investing activities (335) 7,610

(Unaudited) 14


February 28, 2009)


February 28, 2010) Note No. Millions of yen Millions of yen

3. Cash flows from financing activities Payment to acquire treasury stock (4) (2,500) Proceeds from disposal of treasury stock 0 0 Cash dividends paid (2,130) (580) Others (43) 16 Net cash used in financing activities (2,177) (3,064)

4. Effects of exchange rate on cash and cash equivalents

(2,555) 582

5. Net increase (decrease) in cash and cash equivalents

(3,105) 3,241

6. Cash and cash equivalents at beginning of fiscal year

14,979 11,873

7. Cash and cash equivalents at fiscal year-end 11,873 15,115

(Unaudited) 15

(5) Notes regaring premise of a going concern Not applicable.

(6) Basis for Preparation of Consolidated Financial Statements

Items Year ended February 28, 2009 Year ended February 28, 2010 (i) There are 35 consolidated subsidiaries in the Aderans Group. Major consolidated subsidiaries are listed below.Aderans Company Limited FONTAINE Co., Ltd. ADN Co., Ltd. Aderans America Holding, Inc. (overseas subsidiary) Aderans Europe B.V. (overseas subsidiary) Aderans Thai Ltd. (overseas subsidiary) In fiscal 2009, Best Move Co., Ltd. excluded from the scope of consolidation because of merger with overseas subsidiary.

(i) There are 27 consolidated subsidiaries in the Aderans Group. Major consolidated subsidiaries are listed below.Aderans Company Limited FONTAINE Co., Ltd. ADN Co., Ltd. Aderans America Holding, Inc. (overseas subsidiary) Aderans Europe B.V. (overseas subsidiary) Aderans Thai Ltd. (overseas subsidiary) Aderans America Holdings, Inc. (overseas subsidiary) Aderans Europe B.V. (overseas subsidiary) Aderans Thai Ltd. (overseas subsidiary) From the fiscal year ended February 28, 2010, the newly established Aderans Hair Goods, Inc., is included under the scope of consolidation. Samson Co., Ltd., is excluded from the scope of consolidation due to the transfer of stock, and International Hairgoods, Inc., Rene of Paris, General Wig Manufacturers, Inc., New Concepts Hair Goods, Inc., Aderans Retailing Company, Inc., Monfair Mode S.A.R.L., Monfair Moden Vertriebs G.m.b.H, and Camaflex S.A. are excluded from the scope of consolidation due to mergers with overseas subsidiaries. However, as to Samson Co., Ltd., only profit and loss on statements of income of the company was included in the current consolidated figures, because deemed purchased date of the company was February 28, 2020.

1.Scope of consolidation

(ii) The effects of non-consolidated subsidiaries’ accounts on consolidated financial statements would be negligible; hence their results are excluded from the scope of consolidation.

(ii) Same as on the left

2.Application of equity method

The equity method has not been adopted for non-consolidated subsidiaries and affiliates, as their effects on the consolidated financial statements would be negligible.

Same as on the left

3. Issues concerning settlement dates of consolidated subsidiaries

Of the Company’s consolidated subsidiaries, four domestic subsidiaries and 29 overseas subsidiaries have fiscal periods ending December 31. Because the gap between the end of these subsidiaries’ fiscal periods and the date of consolidated settlement is less than three months, consolidated financial statements for the fiscal period are based on the financial statements prepared by these subsidiaries for their respective fiscal periods. If material transactions occurred between December 31 and February 28, the consolidated financial statements are adjusted accordingly.

Of the Company’s consolidated subsidiaries, three domestic subsidiaries and 22 overseas subsidiaries have fiscal periods ending December 31. Because the gap between the end of these subsidiaries’ fiscal periods and the date of consolidated settlement is less than three months, consolidated financial statements for the fiscal period are based on the financial statements prepared by these subsidiaries for their respective fiscal periods. If material transactions occurred between December 31 and February 28, the consolidated financial statements are adjusted accordingly.

(Unaudited) 16

Items Year ended February 28, 2009 Year ended February 28, 2010 1.Principles and methods of valuation of important assets i) Securities Bonds to be held until maturity:

Amortized cost method (straight line method)

Stocks of subsidiaries: Cost recorded using the moving-average method

Other securities: Securities quoted on exchanges: Market value method based on market value at fiscal year end. Appraisal differences are dealt with by means of the direct capital influx method, with cost of securities sold calculated with the moving average method.

Securities not quoted on exchanges: Cost recorded using the moving average method.

1.Principles and methods of valuation of important assets a) Securities

Same as on the left Stocks of subsidiaries:

Same as on the left Other securities:

Securities quoted on exchanges: Same as on the left

---------------------

4.Accounting Principles and Methods

ii) Inventories Goods and products:

With respect to Aderans Co., Ltd., custom-made wigs are accounted for by the unit cost method, ready-made wigs by the weighted average cost method, and other goods and products by the last invoice method. At domestic consolidated subsidiaries, excluding Aderans Co., Ltd., the moving average cost method is most commonly used. Overseas consolidated subsidiaries use either the first-in first-out (FIFO) cost method or the moving-average cost method.

Raw materials and work in process: Consolidated subsidiaries use either the first-in

first-out cost method or the moving-average cost method.

Supplies:

The unit cost method is applied to supply materials, with other supplies mainly being accounted for with the last invoice cost method. However, overseas consolidated subsidiaries use the first-in first-out cost method.

ii) Inventories Goods and products:

With respect to Aderans Co., Ltd., custom-made wigs are accounted for by the unit cost method (a method that estimates the net sale value for assets with noticeably diminished profitability and drops the book value by this amount), ready-made wigs by the weighted average cost method (a method that estimates the net sale value for assets with noticeably diminished profitability and drops the book value by this amount), and other goods and products by the last invoice method (a method that estimates the net sale value for assets with noticeably diminished profitability and drops the book value by this amount). At domestic consolidated subsidiaries, excluding Aderans Co., Ltd., the moving average cost method (a method that estimates the net sale value for assets with noticeably diminished profitability and drops the book value by this amount) is most commonly used. Overseas consolidated subsidiaries use either the first-in first-out (FIFO) cost method or the moving-average cost method.

Raw materials and work in process: Same as on the left

Supplies:

The unit cost method (a method that estimates the net sale value for assets with noticeably diminished profitability and drops the book value by this amount) is applied to supply materials, with other supplies mainly being accounted for with the last invoice cost method (a method that estimates the net sale value for assets with noticeably diminished profitability and drops the book value by this amount). However, overseas consolidated subsidiaries use the first-in first-out cost method.

(Unaudited) 17

2. Depreciation of important non-current assets Tangible non-current assets: These assets are primarily accounted for with the declining-balance method, although buildings (excluding annexes) acquired since April 1, 1998, are accounted for with the straight-line depreciation method. The straight-line method is also applied to certain domestic consolidated subsidiaries. The tangible non-current assets of overseas consolidated subsidiaries are primarily accounted for with the straight-line method. Estimated useful life of principal items is as follows:

Buildings and structures: 13-47 years (Additional information) Domestic consolidated subsidiaries depreciate the difference between 5% of the acquisition price and the memorandum value of assets acquired on or before March 31, 2007, equally over five years from the year following the consolidated fiscal year in which depreciation reached the allowable limit of 95% of the acquisition cost, using methods based on the Corporate Tax Law before revision. This amount is included under depreciation. The effect on financial statements due the change is not significant. Intangible non-current assets: The straight-line method is applied. Software for in-house use is accounted for with the straight-line method over the estimated useful life (five years).

2. Depreciation of important non-current assets Tangible non-current assets: Same as on the left ---------------------

Intangible non-current assets: Same as on the left

(Unaudited) 18

Items Year ended February 28, 2009 Year ended February 28, 2010

Long-term prepaid expenses: Equal depreciation

Lease assets related to finance lease transactions other than those deemed to transfer ownership The lease period shall be the period of asset depreciation and will be determined under a method with zero residual value over the lease period. Lease transactions for which start dates preceded the application of “Accounting Standard for Lease Transactions” (Accounting Standards Board of Japan (ASBJ) Statement No.13, March 30, 2007) and “Implementation Guidance on the Accounting Standard for Lease Transactions” (ASBJ Guidance No.16, March 30, 2007) will be accounted for in accordance with the method for operating leases.

Long-term prepaid expenses: Same as on the left Lease assets related to finance lease transactions other than those deemed to transfer ownership Same as on the left

3. Standards for important allowances i) Allowance for doubtful accounts:

To prepare against credit losses, Aderans makes additions to this allowance on the basis of loan loss ratios for standard loans, and on an individual basis for loans considered unlikely to be repaid in full. For overseas consolidated subsidiaries, the estimated uncollectable amount for individual accounts is added.

ii) Allowance for bonuses to employees: To prepare for bonus payments to employees, the reporting company and its domestic consolidated subsidiaries make additions to the allowance in accordance with the estimated amounts payable.

iii) Allowance for product warranties: To prepare for expenses arising from free warranties on goods and products sold, the consolidated subsidiary, Aderans Co., Ltd. adds an appropriate amount based on past experience.

iv) Allowance for returned goods: Consolidated subsidiary FONTAINE Co., Ltd., makes provisions in order to account for losses due to returns of sold products. Amounts of the allowance for returned goods are calculated by multiplying the average returned goods ratios of the current period and previous fiscal year by the gross profit margin of the current period, and adding this total to the balance of accounts receivable.

v) Retirement benefits allowance — employees The Company, its domestic consolidated subsidiaries and some of its overseas subsidiaries have recorded retirement benefits based on projected benefit obligations and plan assets at the balance sheet date as a reserve for retirement benefits for employees. Past service debt is expensed in the consolidated accounting period in which it occurs by the straight-line method within a fixed period (five years) for the estimated average remaining life of service by employees. Actuarial difference is expensed in the consolidated accounting period following that in which it occurs by the straight-line method within a fixed period (five years) for the estimated average remaining life of service by employees.

vi) Allowance for losses on liquidation of affiliates Consolidated subsidiary Samson has reported the reasonably estimated amounts of loss it expects to incur in the future due to liquidation of affiliates.

vii) Allowance for losses on debt guarantees of affiliates viii)

3. Standards for important allowances i) Allowance for doubtful accounts:

Same as on the left

ii) Allowance for bonus to employees: Same as on the left

iii) Allowance for product warranties:

Same as on the left

iv) Allowance for returned goods: Same as on the left

v) Retirement benefits allowance — employees Same as on the left

vi) Allowance for losses on liquidation of affiliates

--------------------- vii) --------------------- viii) Allowance for business restructuring losses Appropriate amounts will be set aside to provide for anticipated losses stemming from business restructuring at the Company and its subsidiaries.

(Unaudited) 19

Items Year ended February 28, 2009 Year ended February 28, 2010

4. Translation of assets and liabilities denominated in foreign currencies into yen

Assets and liabilities denominated in foreign currencies are converted into yen at the rates of exchange in effect at the end of the consolidated period, with translation differences treated as gains or losses. The assets and liabilities of overseas consolidated subsidiaries are also converted into yen at the rates of exchange in effect at the end of the current fiscal year. Income, losses, and expenses are converted into yen using average exchange rates over the period in question, and translation differences are recorded in the shareholders’ equity section of the balance sheets under foreign currency translation adjustments.

4. Translation of assets and liabilities denominated in foreign currencies into yen

Same as on the left

5. Accounting methods pertaining to important lease transactions

Lease transactions for which start dates preceded the application of “Accounting Standard for Lease Transactions” (ASBJ Statement No.13, March 30, 2007) and “Implementation Guidance on the Accounting Standard for Lease Transactions” (ASBJ Guidance No.16, March 30, 2007) will be accounted for in accordance with the method for operating leases.

5. Accounting methods pertaining to important lease transactions

Same as on the left

6. Consumption and other taxes Aderans applies the tax-exclusion accounting method to national and local consumption taxes.

6. Consumption and other taxes Same as on the left

5.Valuation of assets and liabilities of consolidated subsidiaries

The assets and liabilities of the consolidated subsidiaries are valued using the full mark-to-market method.

Same as on the left

6.Amortization of goodwill

Goodwill is amortized equally over either five years or 10 years starting from its accrual. In the event that the accrued amount is insignificant, it is accounted for as profit or loss at the time of accrual.

Goodwill is amortized equally over either five (5) years or 10 years starting from its accrual. Negative goodwill is amortized equally over 10 years starting from its accrual. In the event that the accrued amount is insignificant, it is accounted for as profit or loss at the time of accrual.

7.Scope of funds in the consolidated statements of cash flows

Funds (cash and cash equivalents) in the consolidated statements of cash flows comprise cash in hand, demand deposits that can be withdrawn at any time, and short-term investments that are highly liquid, easily convertible into cash, have little risk of fluctuation in value, and that mature within three months or less of the date of acquisition.

Same as on the left

(Unaudited) 20

(7) Changes in Significant Items Regardings the Preparation of Interim Consolidated Financial Statements Year ended February 28, 2009 Year ended February 28, 2010

(Accounting method for finance lease transactions other than those deemed to transfer ownership)

“Accounting Standard for Lease Transactions” (ASBJ Statement No.13, March 30, 2007) and “Implementation Guidance on the Accounting Standard for Lease Transactions” (ASBJ Guidance No.16, March 30, 2007) may be applied to financial statements for business years beginning April 1, 2007, and the Company applies the ASBJ statement and related guidance to its consolidated financial statements for fiscal 2009.

Lease transactions for which start dates precede the application of the statement and related guidance will be accounted for in accordance with the method for operating leases.

(Application of accounting standard for assessing inventories) From the fiscal year ended February 28, 2010, the Company and its domestic consolidated subsidiaries apply “Accounting Standards for Measurement of Inventories” (ASBJ Report No. 9, July 5, 2006) and have therefore changed their assessment standard from the previous cost method, wherein inventories held for the purpose of sale are stated at cost according to the specific identification method, to the cost method (book value devaluation based on decline in profitability). Effect of the change was to decrease gross profit by ¥182 million and to increase operating loss by same amount. The impact on segment information is described in the relevant section. (Practical solution concerning accounting treatment of foreign subsidiaries in the preparation of consolidated financial statements) The Company has applied “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements,” (ASBJ Practical Issues Task Force No. 18, issued May 17, 2006) from the fiscal year ended February 28, 2010, and has made the required changes to its consolidated financial statements. The impact of these changes on consolidated losses in fiscal 2010 is insignificant. The impact on segment information is described in the relevant section.

(Unaudited) 21

(Change in Presentation Method) Year ended February 28, 2009 Year ended February 28, 2010

(Consolidated Balance Sheets) In the previous fiscal year, short-term debt of ¥50 million was included in Other under current liabilities. Because this amount exceeds 1/100 of total liabilities and net assets, it is accounted for separately in fiscal 2009.

From the fiscal year ended February 28, 2010, items that had been listed under Inventories in the previous fiscal year, in accordance with application of “Cabinet Office Ordinance Partially Amending Regulations for Terminology, Format and Preparation of Financial Statements (Cabinet Office Ordinance No. 50, August 7, 2008), were listed separately under Commercial goods and finished goods, Work in process, and Raw materials and supplies. Commercial goods and finished goods, Work in process, and Raw materials and supplies accounted for under Inventories in the previous fiscal year amounted to ¥3,103 million, ¥174 million and ¥1,235 million, respectively. 2. In the previous fiscal year, accounts payable of ¥1,726 million was included in Other under current liabilities. Because this amount exceeds 1/100 of total liabilities and net assets, it is account for separately in fiscal 2010.

(Unaudited) 22

(8) Notes regarding Consolidated Financial Statements [Consolidated Balance Sheets]

Year ended February 28, 2009 Year ended February 28, 2010 ＊1 ＊2 ＊3

4

Accumulated depreciation of tangible non-current assets ¥23,991 million Major items of interest in non-consolidated subsidiaries are as follows.

Investment securities (shares) ¥228 million Investments and other assets ¥162 million

Pledged assets (1) Pledged assets

Buildings ¥29 million (book value) Land ¥54 million (book value) Total ¥84 million (book value)

(2) Correlative debts Short-term loans payable ¥188 million

Contingent liabilities

Debt guarantees of consolidated subsidiaries and others which are guarantees for borrowed money (not for consolidated subsidiaries) from a financial institution are as follows: Central Academy Co., Ltd. ¥44million

＊1 ＊2 ＊3

4

Accumulated depreciation of tangible non-current assets ¥23,488 million Major items of interest in non-consolidated subsidiaries are as follows.

Investment securities (shares) ¥210 million Investments and other assets ¥162 million

--------------------- ---------------------

(Unaudited) 23

[Consolidated Statements of Income] Year ended February 28, 2009 Year ended February 28, 2010

＊1 ＊2 ＊3 ＊4 ＊5 ＊6 ＊7 ＊8

Cost of sales includes amounts related to allowances Transfer to allowance for product warranties

¥145 million Transfer from allowance for returned goods

¥27 million ---------------------

Major items and amounts under selling, general and administrative expenses

Advertising expenses ¥11,456 million Salaries and wages ¥17,022 million Addition to allowance for bonuses to employees

¥930 million Retirement benefit expenses ¥232 million Depreciation expenses ¥2,591 million

Amortization of goodwill ¥675 million Research and development costs included in selling, general and administrative expenses

¥1,335 million Gain on sales of non-current assets

Land ¥4 million Others ¥0 million

Total ¥5 million This is a return from a partnership which gained profits through short-term trading, in accordance with the Article 165, Paragraph 2, No. 3 of Financial Instruments and Exchange Law.

Loss on sales of non-current assets was as follows: Land ¥11million Others ¥8 million

Total ¥20 million Main item and amount under losses on disposal of non-current assets was as follows:

Buildings and structures ¥313 million Others ¥17 million

Total ¥330 million

＊1

＊2

＊3

＊4

＊5

＊6

＊7

＊8

Cost of sales includes amounts related to allowances Transfer to allowance for product warranties

¥103 million Transfer from allowance for returned goods

¥3 million Reduced book value of inventory for sale, due to the decreased profitability

Cost of sales ¥182 million

Major items and amounts under selling, general and administrative expenses

Advertising expenses ¥10,940 million Salaries and wages ¥15,095 million

Addition to allowance for bonuses to employees ¥1,254 million

Retirement benefit expenses ¥244 million Depreciation expenses ¥2,380 million Amortization of goodwill ¥418 million

Research and development costs included in selling, general and administrative expenses

¥1,575 million

Gain on sales of non-current assets Buildings and structures ¥112 million Others ¥14 million

Total ¥126 million

---------------------

Loss on sales of non-current assets was as follows: Land ¥1million


Total ¥37 million

Main item and amount under losses on disposal of non-current assets was as follows:


Total ¥378 million

(Unaudited) 24

Year ended February 28, 2009 Year ended February 28, 2010 ＊9

Impairment loss Impairment losses of the following asset group were posted in the current consolidated accounting period.

(1) The main assets on which impairment losses were recognized

Company name and Location

Use Class

Samson Co., Ltd. in Shizuoka prefecture and two other prefectures

Assets for business (Training center and four regular salon)

Land, buildings and structures, etc.

MHR, Inc., in the United States.

Assets for business (Goodwill, buildings and structures, etc)

Goodwill, buildings and structures, etc

＊9

Impairment loss Impairment losses of the following asset group were posted in the current consolidated accounting period.

(1) The main assets on which impairment losses were recognized

Company name and Location

Use Class

Aderans Holdings Co., Ltd. in Tokyo and five other prefectures

Assets for business (Five buildings for rent and other is one)


Aderans Co., Ltd. in Tokyo and four other prefectures

Assets for business (One building for rent) Recreation facilities, etc. (One dormitory, four company condominiums and four recreation facilities)


Fontaine Co., Ltd. in Tokyo

Headquarters Buildings and structures, etc.

ADN Co., Ltd. in Niigata Prefecture

Assets for business Land, buildings, structures and course accounts, etc.

Hair Trust Holdings Co., Ltd. in Tokyo and two other prefectures

Assets for business Land, buildings and structures, etc.

Noddin Co., Ltd. in Gifu Prefecture

Assets for business Land, buildings and structures, etc.

MHR, Inc., in the United States.

Assets for business (Goodwill)

Goodwill

(Unaudited) 25

Year ended February 28, 2009 Year ended February 28, 2010 (2) Reason for the recognition of impairment losses

Operating losses are constant and the total estimate of future cash flows remains below the book value of each asset group. As a result, the book value of each asset group is discounted up to collectable amounts and any decrease in the value of assets is posted under extraordinary expenses as impairment losses.

(3) Amount of impairment losses (Millions of yen)

Class AmountLand 24 Buildings and structures 67 Lease asset 4 Other fixed assets 22 Goodwill 1,749 Other intangible fixed assets 270 Total 2,138

(4) Asset grouping method In principle, Aderans Holdings Co., Ltd., and its domestic consolidated subsidiaries have grouped assets, based on business classification and region. But overseas consolidated subsidiaries have grouped assets by company. (5) Calculation method of collectable amounts The collectable amount of training center and goodwill is calculated based on its assessed value of outside third party. The collectable amounts of other assets are assumed to be zero.

(2) Reason for the recognition of impairment losses Operating losses are constant and the total estimate of future cash flows remains below the book value of each asset group. As a result, the book value of each asset group is discounted up to collectable amounts and any decrease in the value of assets is posted under extraordinary expenses as impairment losses.

(3) Amount of impairment losses (Millions of yen)

Class AmountLand 1,118 Buildings and structures 1,644 Other fixed assets 160 Goodwill 139 Other intangible fixed assets 2 Total 3,065

(4) Asset grouping method In principle, Aderans Holdings Co., Ltd., and its domestic consolidated subsidiaries have grouped assets, based on business classification and region. But overseas consolidated subsidiaries have grouped assets by company. (5) Calculation method of collectable amounts The collectable amount is calculated based on its assessed value of outside third party.

(Unaudited) 26

[Regarding Consolidated Statements of Changes in Shareholders’ Equity] Fiscal 2009 (March 1, 2008 through February 28, 2009) 1. Types of Stock and Number of Shares

Number of Shares at February 29, 2008

Increase in Number of

Shares during Fiscal 2009

Decrease in Number of Shares during Fiscal 2009


Common stock (shares)

41,713,388 －－ 41,713,388

2．Types of Treasury Stock and Number of Shares






Common stock (shares)

2,992,960 2,793 493 2,995,260

Notes: 1. The increase in number of shares comes from 2,793 shares added through the buyback of shares less than one

tangen unit. 2. The decrease in number of shares represents 493 shares accumulated through requests for Aderans to

relinquish shares less than one tangen unit.

3. Stock acquisition rights as stock options Not applicable.

4. Dividends (1) Dividends paid

Resolution Type of stock

Total Dividends

Dividend per Share Record Date Effective Date

General shareholders’ meeting on

May 29, 2008

Common stock ¥1,936 million ¥50 February 29, 2008 May 30, 2008

Board of Directors meeting on

October 26, 2008

Common stock ¥193 million ¥5 August 31, 2008 November 19, 2008

(2) The effective date for dividends with a record date of fiscal 2009 ended February 28, 2009, shall be a date after the

close of books for said consolidated period.

Resolution Type of Stock

Source of Dividends

Total Dividends



May 28, 2009

Common stock

Earned surplus ¥580 million ¥15 February 28,

2009 May 29, 2009

(Unaudited) 27

Fiscal 2010 (March 1, 2009 through February 28, 2010) 1. Types of Stock and Number of Shares

Number of Shares at February 28,

2009




Number of Shares at

February 28, 2010

Common stock (shares) 41,713,388 － 1,500,000 40,213,388(Reason for change) The decrease in the number of shares during fiscal 2010 is due to the retirement of 1,500,000 shares of treasury stock.

2．Types of Treasury Stock and Number of Shares Number of Shares

at February 29, 2008




Number of Shares at

February 28, 2010

Common stock (shares) 2,995,260 1,908,880 1,500,016 3,404,124(Reasons for change) The increase in number of shares during fiscal 2010 came from the purchase of 1,908,300 shares of treasury stock and buyback of 580 shares of stock less than one tangen unit. The decrease in number of shares during fiscal 2010 came from the retirement of 1,500,000 shares of treasury stock and 16 shares accumulated through requests for Aderans to relinquish shares less than one tangen unit.

3. Stock acquisition rights as stock options

Not applicable. 4. Dividends (1) Dividends paid

Resolution Type of stock

Total Dividends



May 28, 2009

Common stock ¥580 million ¥15 February 28, 2009 May 29, 2009

(2) The effective date for dividends with a record date of February 28, 2010, shall be a date after the close of books for

said consolidated period. Not applicable.

(Unaudited) 28

[Consolidated Statements of Cash Flows] Year ended February 28, 2009 Year ended February 28, 2010

1 ＊2

Cash and cash equivalents at fiscal year-end, and the related amounts on the consolidated balance sheets: Cash and deposits ¥9,941 million Money management funds and others included under marketable securities ¥2,093 million Time deposits with maturities over three months

(¥160 million) Cash and cash equivalents ¥11,873 million ---------------------

1 ＊2

Cash and cash equivalents at fiscal year-end, and the related amounts on the consolidated balance sheets: Cash and deposits ¥15,381 million Time deposits with maturities over three months

(¥265 million) Cash and cash equivalents ¥15,115 million Significant assets and liabilities of company removed from the scope of consolidation through the transfer of shares Samson Co., Ltd. (as of December 31, 2009) Current assets ¥226 million Fixed assets ¥704 million Total assets ¥930 million Current liabilities ¥(1,382) million Fixed liabilities ¥(1,217) million Total liabilities ¥(2,599)million Business transfer valu ¥0 million Samson’s cash and cash equivalents ¥(48) million Net: Proceeds from business transfer after deductions ¥(48) million

(Unaudited) 29

[Segment Information] 1. Business Segments For fiscal year ended February 28, 2009 (March 1, 2008 through February 28, 2009)

Information by business segment is omitted because the contribution to hair-related business under total sales, operating income and assets of all the segments exceeds 90%, respectively.

For fiscal year ended February 28, 2010 (March 1, 2009 through February 28, 2010)

Information by business segment is omitted because the contribution to hair-related business under total sales, operating income and assets of all the segments exceeds 90%, respectively.

(Unaudited) 30

2. Geographical segments For fiscal year ended February 28, 2009 (March 1, 2008 through February 28, 2009)

Millions of yen Japan Asia North

America Europe Total Eliminations Consolidated

Ⅰ. Sales and operating profits and losses External customers 48,981

431 17,099 3,950 70,463 － 70,463

Inter-segment 278

4,359 1,454 0 6,093 (6,093) －

Total 49,260 4,790 18,554 3,951 76,557 (6,093) 70,463 Operating expenses 45,082 4,532 19,488 3,711 72,815 (4,859) 67,955 Operating income 4,177 258 (934) 240 3,741 (1,233) 2,508 Ⅱ. Total assets 53,170 5,373 7,338 3,315 69,198 6,903 76,102

For fiscal year ended February 28, 2010 (March 1, 2009 through February 28, 2010) Millions of yen

Japan Asia North America

Europe Total Eliminations Consolidated

Ⅰ. Sales and operating profits and losses External customers 40,806 324 12,852 3,373 57,355 － 57,355 Inter-segment 223 2,949 1,718 0 4,892 (4,892) －

Total 41,029 3,274 14,570 3,373 62,247 (4,892) 57,355 Operating expenses 44,605 3,185 15,097 3,232 66,121 (3,500) 62,620 Operating income (3,576) 88 (526) 140 (3,873) (1,391) (5,264) Ⅱ. Total assets 48,560 4,586 4,494 2,514 60,156 3,213 63,369 (Notes)

1. Countries and/or regions are grouped by geographical proximity. 2. Major countries and areas in regions other than Japan: (i) Asia -------------------- Thailand, the Philippines, Taiwan

(ii) North America ------- United States, Mexico (iii) Europe ---------------- France, Germany, Belgium, Sweden, the Netherlands, the United Kingdom 3. Operating expenses under “Elimination” included unallocatable expenses, which primarily consist of costs relating to the administrative

division, including the general affairs division of the parent company and to the assets of the entire company as follows: Year ended February 28, 2009: ¥1,457 million, Year ended February 28, 2010: ¥1,523 million

4. Total assets under “Elimination” included the assets of the entire company, which primarily consist of surplus funds managed by the parent company (cash and time deposits), funds for long-term investment (investment securities), and assets related to the administrative divisions as follows;

Year ended February 28, 2009: ¥19,790 million, Year ended February 28, 2010: ¥14,693 million 5. Change in Accounting Treatment Method

(1) Application of accounting standard for assessing inventories)

From the fiscal year ended February 28, 2010, the Company and its domestic consolidated subsidiaries apply “Accounting Standards for

Measurement of Inventories” (ASBJ Report No. 9, July 5, 2006) and have therefore changed their assessment standard from the previous

cost method, wherein inventories held for the purpose of sale are stated at cost according to the specific identification method, to the

cost method (book value devaluation based on decline in profitability).

Effect of the change was to decrease gross profit by \182 million and to increase operating loss by same amount.

(2) Apply practical solution regarding accounting treatment of foreign subsidiaries in the preparation of consolidated financial statements

As described in “Changes to key items fundamental to the preparation of consolidated financial statements,” the Company will apply

“Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements,”

(Accounting Standards Board of Japan, Practical Issues Task Force No. 18, issued May 17, 2006) from the fiscal year ended February 28,

2010. The Company has made the required changes to its consolidated financial statements.

The impact of these changes on consolidated losses in fiscal 2010 is insignificant.

(Unaudited) 31

3. Overseas sales For fiscal year ended February 28, 2009 (March 1, 2008 through February 28, 2009)

Yen in millions Asia North America Europe Other regions Total 1. Overseas sales 446 16,856 3,949 114 21,367 2. Consolidated net sales ― ― ― ― 70,463 3. Share of overseas sales 0.6% 23.9% 5.6% 0.2% 30.3%

For fiscal year ended February 28, 2010 (March 1, 2009 through February 28, 2010)

Yen in millions Asia North America Europe Other regions Total 1. Overseas sales 330 12,639 3,397 89 16,456 2. Consolidated net sales ― ― ― ― 57,355 3. Share of overseas sales 0.6 22.0 5.9 0.2 28.7 (Notes) 1. Countries and/or regions are classified by geographical proximity. 2. Major countries and areas classified in regions other than Japan: (i) Asia -------------------- Thailand, Taiwan, Korea, Singapore, the Philippines

(ii) North America ------- United States, United Mexican States (iii) Europe ---------------- France, Germany, Belgium, Sweden, the Netherlands, the United Kingdom (iv) Other regions --------- Australia, and Central and South America

3. Overseas sales are sales of the reporting company and its consolidated subsidiaries in the countries and areas outside of Japan.

(Unaudited) 32

(Business combination) For fiscal year ended February 28, 2009 (March 1, 2008 through February 28, 2009) None For fiscal year ended February 28, 2010 (March 1, 2009 through February 28, 2010) Transactions under common control (mergers) Five consolidated subsidiaries --- Rene of Paris, General Wig Manufacturers, Inc., International Hairgoods, Inc., New Concepts Hair Goods, Inc., and Aderans Retailing Company, Inc. ---were merged and then absorbed by Aderans Hairgoods, Inc. (Rene of Paris on December 28, 2008, and other four companies on December 31, 2009). 1. Name of companies in the business combination, or subject businesses, and respective business lines, legal form of the business combination, corporate name after combining, and summary of transactions, including purpose of transactions (1) Names of companies involved in the corporate alliance and their respective business lines General Wig Manufacturers, Inc. Sale of wigs in the United States Rene of Paris Sale of wigs in the United States International Hairgoods, Inc. Sale of wigs in the United States New Concepts Hair Goods, Inc. Sale of wigs in the United States Aderans Retailing Company, Inc. Sale of wigs in the United States (2) Method of business combination Merger (3) Corporate name after combining Aderans Hairgoods, Inc. (4) Summary of transactions, including purpose of transactions (Purpose) To boost profits by enhancing efficiency in the sale of wigs in the United States and by expanding sales and marketing strategies, and to reinforce the business foundation to promote further growth. (Summary) In this absorption-type merger, Aderans Hairgoods will absorb the operations of General Wig Manufacturers and the other four companies as the surviving company, and the other companies will be dissolved. 2. Summary of accounting treatment used Because this merger deals with transactions under common control, they will cancel each other out as internal transactions. Therefore, the accounting treatment used will have no impact on consolidated financial statements.

(Unaudited) 33

For fiscal year ended February 28, 2010 (March 1, 2009 through February 28, 2010) Business divestiture 1. Name of company being divested and its line of business, primary reason for divestiture, date of divestiture and summary of business divestiture, including method (1) Name of company being divested and its line of business Name: Samson Co., Ltd. Line of business: Operation of beauty and hairdressing salons (2) Reason for divestiture The Company is pursuing a policy to streamline the Group’s non-core operations, and the beauty and hairdressing business falls into this category. Consequently, it was decided that management and employees at Samson would execute a management/employee buyout and the capital alliance with the Aderans Group would be terminated. (3) Date of business divestiture (Date of equity transfer) February 24, 2010 (4) Summary of business divestiture, including method A business transfer seeking compensation through assets, namely cash. 2. Summary of accounting treatment used Because compensation for the transfer of equity was cash only and the divested company was transferred to a company other than one of the Company’s subsidiaries or affiliates, this business divestiture was viewed as a transaction for cash compensation wherein the divested company was transferred to a company other than a subsidiary or an affiliate, in accordance with “Accounting Standards for Business Divestitures” (ASBJ Statement No. 7, December 27, 2005) and “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ Guidance No. 10, final revision November 15, 2007). The difference between the cash amount received for Samson shares and the consolidated book value of the Company’s equity-based equivalent of net assets, based on fair book value of Samson’s assets and liabilities immediately prior to the transfer, has been recognized as a transferred profit (loss). (1) Amount of transferred profit (loss) ¥1,069 million (included in Gain from sale of Investment Securities under Extraordinary income on Consolidated Statement of Income) (2) Fair book value of assets and liabilities associated with relocated business as well as the components of such assets and liabilities Current assets ¥226 million Fixed assets ¥704 million Total assets ¥930 million Current liabilities ¥1,382 million Fixed liabilities ¥1,217 million Total liabilities ¥2,599 million (3) Estimated profit from divested business that has been recorded on the consolidated statement of income in fiscal 2010 Net sales ¥1,643 million Operating income ¥25 million

(Unaudited) 34

[Per Share Data] Items Year ended February 28, 2009 Year ended February 28, 2010

Net assets ¥1,582.09 ¥1,339.98Net income (loss) ¥56.11 ¥261.98Fully diluted earnings (loss) An amount for fully diluted income per share is

not disclosed here because no potentially dilutive securities have been issued.

An amount for fully diluted income per share is not disclosed here because no potential securities have been issued.

Note: Basic criteria for calculation

1． Shareholders’ equity per share Items Year ended February 28, 2009 Year ended February 28, 2010

Total shareholders’ equity 61,344 49,418Deduction amount from total shareholder’ equity (Millions of yen) [Minority interests]

88

[88]

95

[95]Shareholders’ equity for common stock (Millions of yen)

61,255 49,323

Number of shares issued (shares)

41,713,388 40,213,388

Common shares held as treasury stock (shares)

2,995,260 3,404,124

Number of common shares used in the ca1culation of shareholders’ equity per share (shares)

38,718,128 36,809,264

2． Net income and fully diluted net income per share

Items Year ended February 28, 2009 Year ended February 28, 2010 Net income (Millions of yen) (2,172) (9,851)Amount not attributed to common stock (Millions of yen)

― ―

Net income for common stock (Millions of yen)

(2,172) (9,851)

Average number of shares of common stock for the period (Shares)

38,719,069 37,602,482

Increase in number of shares of common stock (shares)

Stock acquisition rights

―

[―]

―

[―]Details on potential common stock excluded from the calculation of fully diluted net income per share owing to absence of outstanding dilutive securities

Class of potential common stock (Warrants) Number of potential common shares (599,600 shares)

Class of potential common stock ( ― ) Number of potential common shares ( ― )

(Unaudited) 35

(Significant Subsequent Events) For fiscal year ended February 28, 2010 (March 1, 2009 through February 28, 2010) (Dissolution of subsidiary) Reason for dissolution and special liquidation The main businesses of ADN Co., Ltd., a consolidated subsidiary, were ad craft and gold course management, with the adcraft division supporting the sales promotion activities of companies under the Aderans Group umbrella and the golf course management division emphasizing regional development and social contribution activities in Niigata Prefecture.

Unfortunately, ADN was plagued by poor fiscal results and a recovery in the short term was deemed highly unlikely. Seeking to concentrate management resources in Group operations with solid growth potential, the Company’s Board of Directors approved a recommendation at its meeting on October 14, 2009, for dissolution and special liquidation of ADN.

At ADN’s regular general meeting of shareholders on March 13, 2010, shareholders voted to dissolve the company and an application for special liquidation was filed with the Tokyo District Court on March 18, 2010.

Such events often have an impact on consolidated profits, but management expects the dissolution and special liquidation of ADN to be minimal. (Significant merger) 1. Purpose The Company’s Board of Directors resolved at a meeting on March 18, 2010, that the best way to enhance operating efficiency within the Aderans Group would be for Aderans Holdings to absorb the operations of Aderans Co., Ltd., which markets custom-made wigs to men and women at directly operating salons, and Fontaine Co., Ltd., which markets ready-made wigs to women through such sales points as department stores. 2. Names of companies to be absorbed by Aderans Holdings. Aderans Co., Ltd. Fontaine Co., Ltd. 3. Method This will be an absorption-type merger wherein Aderans and Fontaine are absorbed into the Company and dissolved, with the Company as the surviving company. 4. Share issue and allocation Because the Company holds all shares in Aderans and in Fontaine, no new shares will be issued in conjunction with the merger.

5. Size and Principle Operations of Companies to be Absorbed in the Merger

(1) Name Aderans Co., Ltd. Fontaine Co., Ltd.

(2) Address 6-3, Shinjuku 1-chome, Shinjuku -key, Tokyo 5-3, Shinjuku 5-chome, Shinjuku -ku, Tokyo (3) Representative Senkichi Yagi, President Kunio Ie, President (4) Principal line of

business Sale of hair-related products Sale of hair-related products (5) Paid-in capital ¥2,000 million ¥1,539 million (6) Established September 2007 January 1979 (7) Number of shares

issued 2,000 shares 8,070,000 shares (8) Fiscal period March to February March to February (9) Number of employees 1,795 881

(10) Major shareholder and shareholding ratio

Aderans Holdings Co., Ltd (100%) Aderans Holdings Co., Ltd (100%)

(11) Most recent fiscal results (Millions of yen)

Fiscal year ended February 28, 2010 Fiscal year ended February 28, 2010

Net sales 28,981 9,834 Net income (loss) (6,127) 169 Total assets 18,331 7,565 Total liabilities 11,315 2,006 Net assets 7,015 5,558

(Unaudited) 36

6. Planned Merger Date September 1, 2010 (scheduled) (Omission of Disclosure) Special remarks related to such items as lease transactions, marketable securities, derivative transactions, retirement and pension plans, stock options, income taxes and notes regarding related party information have been omitted from these materials because such information is regarded as minimally significant to disclosure for the settlement.

============================================================

(END)

Non-Consolidated

(Unaudited) 37

1. Non-Consolidated Financial Statements (1) Non-Consolidated Balance Sheets

Fiscal 2009 as of

February 28, 2009

Fiscal 2010 as of

February 28, 2010

Yen in millions Yen in millions

Assets Current assets Cash and cash equivalents 1,330 8,738

Marketable securities 4,298 ―

Inventories 6 6 Prepaid expenses 24 6 Deferred tax assets 250 288 Short-term loans to affiliates ― 3,205 Others

Allowance for doubtful accounts 1,012

(20)1,789(121)

6,903 13,913Total current assets Fixed assets Tangible fixed assets

9,492(5,455)

8,694(5,702)

Buildings Accumulated depreciation Buildings (Net) 4,037 2,991

442(364)

434(374)

Structures Accumulated depreciation Structures (Net) 77 60

29(17)

29(21)

Vehicles Accumulated depreciation Vehicles (Net) 12 8

207(152)

212(154)

Equipment Accumulated depreciation Equipment (Net) 57

Land 54

8,535 7,852Total Tangible fixed assets 12,716 10,970 Intangible fixed assets Patent rights 1 1 Leaseholding 1,812 1,812 Trade names 9 27 Software 10 11 Others 5 6Total intangible fixed assets 1,840 1,859 Investments and other fixed assets Time deposits 2,000 －

Investment securities 5,214 1,000 Investment securities in affiliates 27,044 22,102 Equity funds 22 22 Investments in partnerships

with affiliates 162 162

Long-term loans to affiliates 6,272 6,311 Long-term prepaid expenses 7 3 Deferred tax assets 979 3,152 Guarantee deposits － 19 Reserve for insurance 604 －

Others 112 4 Allowance for doubtful

accounts (3,677) (3,895)

38,743 28,883Total investments and other fixed assets Total fixed assets 53,301 41,712

Total assets 60,204 55,626

Non-Consolidated

(Unaudited) 38

Fiscal 2009

as of February 28, 2009

Fiscal 2010 as of

February 28, 2010

Yen in millions

Yen in millions

Liabilities Current liabilities Accrued accounts payable 120 1,623 Accrued expenses payable 13 38 Accrued consumption tax 21 4 Deposits received 21 17 Deposits received from affiliates 500 500 Allowance for employees’ bonuses － 45 Allowance for business

restructuring losses 28 103

Others 12 40Total Current liabilities 717 2,372

Fixed liabilities Allowance for employees’

severance and retirement benefits 93 96

Long-term accounts payable 23 7 Others 4 0

Total fixed liabilities 121 105Total liabilities 839 2,477

Net Assets Shareholders’ equity Common stock 12,944 12,944 Capital surplus Additional paid-in capital 13,157 13,157 Total capital surplus 13,157 13,157 Earned surplus Earned reserve 1,022 1,022 Other reserve Deferred capital gain on sales

of buildings 11 10

General reserves 25,000 25,000 Retained earnings carried

forward 16,455 8,049

Total earned surplus 42,488 34,081 Treasury stock (9,082) (7,034)

Total shareholders’ equity 59,507 53,148 Other comprehensive income Unrealized gains (losses) on

investment securities (141) ―

Total other comprehensive income (141) ―Total net assets 59,365 53,148

Total liabilities and net assets 60,204 55,626

Non-Consolidated

(Unaudited) 39

(2) Non-consolidated Statements of Income Fiscal 2009

as of February 28, 2009

Fiscal 2010 as of

February 28, 2010

Yen in millions Yen in millions Net sales

Revenue from running affiliates 1,4121,412

1,7301,730

Gross profit 1,412 1,730 Selling, general and

administrative expenses 2,844 3,360

Operating income (loss) (1,431) (1,630) Non-operating Income 5,058 2,836 Interest received 192 171 Interest on securities received 80 50 Dividends received 3,952 1,746 Rent on real estate 806 784 Others 26 82 Non-operating expenses 736 694 Rent on real estates 433 374 Foreign exchange losses 158 204 Taxes and public charges 120 107 Others 22 8

Ordinary profit Extraordinary income

2,89059

511260

Return of profit gained through short-term trading

59 ―

Gains on sales of investment securities

― 260

Extraordinary expenses 3,202 6,353 Losses on sale of fixed assets

Losses on disposal of fixed assets

―285

200

Loss on sales of investment

securities ― 638

Unrealized loss on investment securities

1,389 ―

Impairment loss ― 1,487 Unrealized loss on investment

in affiliates 113 3,592

Loss on sales of investment n affiliates

― 179

Losses on prior year account ― 11 Transfer to allowance for

business restructuring losses ― 103

Transfer to allowance for doubtful accounts

1,215 318

Others 199 ―

Income (loss) before income taxes

Corporate, inhabitant and business taxes Taxes for prior fiscal periods

(252)

3

(4)

(5,581)

4

― Adjustments to corporate and

other taxes Total income taxes

(242)

(242)

(2,308)

(2,308)

Net income (10) (3,278)

Non-Consolidated

(Unaudited) 40

(3) Non-Consolidated Statements of Changes in Shareholders’ Equity Fiscal 2009

(March 1, 2008 through February 28, 2009)


February 28, 2010)

Yen in millions

Yen in millions

Shareholders’ Equity Common Stock Balance at February 29, 2009


Total of items during fiscal year ― ― Balance at February 29, 2010 12,944 12,944

Capital Surplus Additional paid-in capital

Balance at February 29, 2009 Changes during fiscal 2010

13,157

13,157

― ― Total of items during fiscal year Balance at February 29, 2010 13,157 13,157

Total of capital surplus Balance at February 29, 2009 13,157 13,157 Changes during fiscal 2010 Total of items during fiscal year

Balance at February 29, 2010 ―

13,157―

13,157 Retained Earnings Earned reserve Balance at February 29, 2009 Changes during fiscal 2010

1,022 1,022

Total of items during fiscal year ― ― Balance at February 29, 2010 1,022 1,022 Other reserve Deferred capital gain on sales of

buildings Balance at February 29, 2009 12 11 Changes during fiscal 2010 Reversal of deferred capital

gain on sales of buildings (0) (0)

Total of items during fiscal year (0) (0) Balance at February 29, 2010 11 10 General reserves Balance at February 29, 2009 25,000 25,000 Changes during fiscal 2010 Total of items during fiscal year ― ― Balance at February 29, 2010 25,000 25,000 Retained earnings carried forward Balance at February 29, 2019 18,594 16,455 Changes during fiscal 2010 Dividends from surplus (2,129) (580) Reversal of deferred capital

gain on sales of buildings 0 0

Net income (loss) (10) (3,278) Disposal of treasury stock (0) (0) Cancellation of treasury stock ― (4,547) Total of items during fiscal year (2,139) (8,406) Balance at February 29, 2010 16,455 8,049

Non-Consolidated

(Unaudited) 41


February 28, 2009)


February 28, 2010)

Yen in millions

Yen in millions

Total of retained Earnings Balance at February 29, 2009


Dividends from surplus (2,129) (580) Reversal of deferred capital

gain on sales of buildings ― ―

Net income (loss) Disposal of treasury stock

Cancellation of treasury stock Total of items during fiscal year

(10)(0)―

(2,140)

(3,278)(0)

(4,547)(8,406)

Balance at February 29, 2010 42,488 34,081 Treasury Stock Balance at February 29, 2009 (9,079) (9,082) Changes during fiscal 2010 Purchases of treasury stock (4) (2,500) Disposal of treasury stock

Cancellation of treasury stock Total of items during fiscal year Balance at February 29, 2010

1―(3)

(9,082)

04,5472,047

(7,034) Total of Shareholders’ Equity Balance at February 29, 2009 61,651 59,507 Changes during fiscal 2010 Dividends from surplus (2,129) (580) Net income (loss) (10) (3,278) Purchases of treasury stock (4) (2,500) Disposal of treasury stock 0 0 Cancellation of treasury stock ― ― Total of items during fiscal year (2,143) (6,359) Balance at February 29, 2010 59,507 53,148Unrealized Gain (Loss) on Securities

and Foreign Currency Translation Adjustments

Unrealized gain (loss) on other securities

Balance at February 29, 2009 (6) (141) Changes during fiscal 2010 Net changes of items other than


(135) 141

Total of items during fiscal year (135) 141 Balance at February 29, 2010 (141) ― Total of Unrealized Gain (Loss) on

Securities and Foreign Currency Translation Adjustments

Balance at February 29, 2009 (6) (141) Changes during fiscal 2010 Net changes of items other than

shareholders’ equity during fiscal year (135) 141

Changes during fiscal 2010 (135) 141 Balance at February 29, 2010 (141) ―

Non-Consolidated

(Unaudited) 42


February 28, 2009)


February 28, 2010)

Yen in millions

Yen in millions

Total Net Assets Balance at February 29, 2009 Changes during fiscal 2010 Dividends from surplus Net income (loss) Purchases of treasury stock Disposal of treasury stock Cancellation of treasury stock Net changes of items other than

shareholders’ equity during fiscal Changes during fiscal 2010 Balance at February 29, 2009

61,644

(2,129)(10)

(4)0

―(135)

(2,279)59,365

59,365

(580)(3,278)(2,500)

0―

141(6,217)53,148

============================================================

(END)

aderans holdings co., ltd. - ir pocketpdf.irpocket.com/c8170/kzoo/r52z/hh76.pdf · 2013. 5. 8. ·...

Documents