CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2023
(March 1, 2022 to May 31, 2022)
July 7, 2022
YONDOSHI HOLDINGS INC. is listed on the Prime Market of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Hidetoshi Masuda, President and Representative Director
Masahiko Nishimura, Managing Director, Managing Executive Officer
responsible for Finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): July 14, 2022
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): —(Millions of yen rounded down)

1. Consolidated Operating Results for the First Quarter of Fiscal 2022
(March 1, 2022 to May 31, 2022)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating Income
Ordinary Income
owners of parent
Millions of yen

1Q FY2022
1Q FY2021

9,324

％

6.7

Millions of yen

388％

Millions of yen％

Millions of yen

％

14.8

490

(1.8)

401

55.2

258

95.3

8,735
11.3
338
50.0
499
40.2
Note: Comprehensive income 1Q FY2022: (2,369) million yen (―%) 1Q FY2021: 894 million yen (8.8%)
Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

1Q FY2022
18.73—
1Q FY2021
12.08—(Reference) Operating income before the amortization of goodwill:
1Q FY 2022: ¥512 million
1Q FY 2021: ¥462 million
The Company considers operating income before the amortization of goodwill to be an important management
indicator.
Note: The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) from the beginning of the first quarter of the subject fiscal year. Figures for the first quarter of the
fiscal year ending February 28, 2023, are after application of this accounting standard.

(2) Consolidated Financial Position
Total Assets
Millions of yen

Net Assets
Millions of yen

Net Assets to Total
AssetsNet Assets per Share%Yen

May 31, 2022
53,35539,66374.3
1,848.50
56,88442,91775.4
2,001.22
February 28, 2022
(Reference)
Shareholders’ equity: May 31, 2022: 39,637 million yen February 28, 2022: 42,893 million yen
Note: The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) from the beginning of the first quarter of the subject fiscal year. Figures for the first quarter of the
fiscal year ending February 28, 2023, are after application of this accounting standard.

-1-2. Dividends
Dividends per Share
(Record Date)

End of 1Q

Fiscal 2021
Fiscal 2022
Fiscal 2022
(Forecast)End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

41.50

—

41.50

83.00

41.50

—

41.50

83.00

Note: Revision to the most recently announced cash dividend forecast: No

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2023
(March 1, 2022 to February 28, 2023)(Percentages represent percentage changes as compared with the corresponding period in the previous fiscal year)
Profit attributable to
Net Income
Net Sales
Operating Income Ordinary Income
owners of parent
per Share
Millions of yen

Interim period
Fiscal year
endingFebruary 28,
2023%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

19,500

9.5

850

97.7

1,000

39.7

650

131.9

30.32

41,500

8.9

2,700

51.0

3,000

30.8

1,800

20.8

83.97

Note: Revision to the most recently announced operating results forecast: No(Reference) EPS before the amortization of goodwill is ¥107.13.

Notes(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: Yes(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
May 31, 2022: 24,331,356 sharesFeb. 28, 2022: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2022: 2,888,196 sharesFeb. 28, 2022: 2,897,922 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)First quarter fiscal 2022: 21,436,381 shares First quarter fiscal 2021: 21, 420,267 shares
Note: The number of recorded treasury stock includes 74,170 of the Company’ shares held by the Shares
Grant Trust for Officers as of the end of the first quarter of the subject consolidated fiscal year.

* These quarterly consolidated financial results are not subject to auditing by certified public accountants or
audit firms.
* Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
Results forecasts are prepared based on information available at the time of disclosure of this document.
Actual results may vary from forecast figures for a variety of reasons. For the assumptions that underpin
operating results forecasts as well as cautionary notes on the use of operating results forecasts, please refer
to “1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated Results
Forecasts and Other Future Predictions” on page 4.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

4(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

4

Consolidated Quarterly Financial Statements

5(1)

Consolidated Quarterly Balance Sheets

5(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of7

Comprehensive Income(3)

Consolidated Quarterly Statements of Income First Quarter Cumulative

7

Consolidated Quarterly Statements of Comprehensive Income

8First Quarter Cumulative

Notes to Consolidated Quarterly Financial Statements

9(Notes Regarding Going Concern Assumptions)9(Notes Regarding Substantial Changes in Shareholders’ Equity)9(Changes in Accounting Policies)

9(Adoption of Accounting Standard for Fair Value Measurement)

10(Application of Special Accounting Treatment in the Preparation of the Consolidated

10

Financial Statements)(Additional Information)

10(Segment Information)

12(Matters related to revenue recognition)

13(Important Subsequent Events)

13

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first quarter period (March 1, 2022, to May 31, 2022) of fiscal 2022 (ending February 2023),
although economic activity began to gradually return to normal with the decline in the number of COVID19 cases, conditions in the Japanese economy remained unpredictable as a result of rising costs forresources and energy due to the international situation, along with a sharp depreciation of the yen.
In the retail industry, occasions for people to go out increased with the lifting of pre-emergency
COVID-19 mitigation measures, bringing signs of recovery in consumer spending. However, the fallout
from successive price increases raised concerns of a cooling off in consumer sentiment, and the outlook
remains unclear.
Under such circumstances, during fiscal 2022, the second year of the sixth medium-term management
plan, YONDOSHI HOLDINGS Group, in response to the changes in the business environment, willleverage the strengths of the corporate group to the fullest extent in order to provide products and services
that exceed customer expectations, with the aim of further growth. In addition, the Company is practicing
sustainable management to establish a highly trusted corporate group, and is working to enhanceenterprise value by strengthening internal controls, providing shareholder returns, and making medium tolong-term investments linked to earnings growth.
As a result, net sales for the subject first quarter period amounted to ¥9,324 million (up 6.7% from thesame period of the previous fiscal year), with operating income of ¥388 million (up 14.8%), ordinary
income of ¥490 million (down 1.8%) and profit attributable to owners of parent to ¥401 million (up55.2%). Operating income before the amortization of goodwill, which the Company considers to be an
important management indicator, amounted to ¥512 million (up 10.9%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group, which operates the jewelry business, recorded strong sales of fashion jewelry
such as 50th anniversary limited-edition items, and an upturn in sales through the e-commerce site thatwas fully renewed in March. Results were further boosted by the rebound effect from temporary store
closures in the previous fiscal year during the COVID-19 crisis, and a significant recovery in customer
traffic.
As a result, net sales in the Jewelry Business segment amounted to ¥4,122 million (up 9.0% from thesame period of the previous fiscal year), with operating income of ¥193 million (up 88.5%).
Apparel Business
Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, recorded an increase in sales atexisting stores as a result of strengthened product planning capabilities and proactive efforts for sales
promotion campaigns, with performance further boosted by openings of new locations.
The AS’TY Group was negatively impacted in part by the weak yen and higher material costs, but
managed to achieve results mostly in line with plan due to expanded sales on the recovery in demand, andmeasures to reduce costs.
As a result, net sales in the Apparel Business segment amounted to ¥5,201 million (up 5.0% from thesame period of the previous fiscal year). Operating income declined to ¥286 million (down 18.1%), for arevenue gain with earnings decline. However, earnings at all levels exceeded the business plan.
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2022) amounted to ¥53,355 million, adecrease of ¥3,528 million from the end of the previous fiscal year (February 28, 2022). This was due
mainly to a decrease of ¥4,335 million in investment securities. Total liabilities amounted to ¥13,692
million, a decrease of ¥274 million from the end of the previous fiscal year. Total net assets at the end of
the subject period amounted to ¥39,663 million, a decrease of ¥3,254 million from the end of the previous
fiscal year. This was due mainly to a decrease of ¥2,791 million in valuation difference on available-forsale securities.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Consolidated results forecasts for fiscal 2022 are unchanged from those announced on April 14, 2022.

-4-2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 28, 2022
(As of February 28, 2022)

End of the First Quarter of
the Fiscal Year Ending
February 28, 2023
(As of May 31, 2022)

2,900
2,445
7,713
293
736
813
(4)

2,251
3,116
8,431
174
545
1,120
(5)

14,89915,634

4,630
5,839
429

4,655
5,839
464

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Other, net

10,89910,958Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

2,234
289

2,110
382

Total intangible assets

2,523

2,492

Investments and other assets:
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts

24,037
492
4,083
(51)

19,702
501
4,116
(50)

Total investments and other assets

28,562

24,26941,98537,721

56,88453,355

Total noncurrent assets
Total assets

-5-

５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 28, 2022
(As of February 28, 2022)

End of the First Quarter of
the Fiscal Year Ending
February 28, 2023
(As of May 31, 2022)

2,181
738
353
196
10
－
1,966

2,774
726
386
252
13
12
2,466

5,447

6,631

146

140

514
1,400
6,458

511
1,397
5,009

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Electronically recorded obligations – operating
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Provision for share-based remuneration for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Other

8,519

7,060

Total liabilities

Total noncurrent liabilities

13,966

13,692NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock

2,486
7,196
31,707(6,175)

2,486
7,197
31,202(6,155)35,21534,730

Other accumulated comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans

Total shareholders’ equity

8,018
8
(233)
1
(117)

5,226
28
(233)
2
(117)

Total other accumulated comprehensive income

7,677

4,907

Subscription rights to shares
Total net assets
Total liabilities and net assets

-6-

24

26

42,917

39,66356,88453,355

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
First Quarter Cumulative(Millions of yen)First Quarter of the
Fiscal Year Ended
February 28, 2022
(March 1, 2021 to
May 31, 2021)

First Quarter of the
Fiscal Year Ending
February 28, 2023
(March 1, 2022 to
May 31, 2022)

Net sales
Cost of Sales

8,735
4,160

9,324
4,647

Gross profit

4,575

4,676

Selling, general and administrative expenses

4,237

4,288

Operating income

338

388

Non-operating income
Interest income
Dividends received
Foreign exchange gains
Subsidy income
Other

20
47
11
80
8

19
59
2

Total non-operating income

166

Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts
Loss on insurance cancellation
Other

0
0
2
2

Total non-operating expenses

―
22
104
0

―
1
0

5

2

Ordinary income

499

490

Extraordinary income
Gain on sales of investment securities
Subsidies for employment adjustment―

293

Total extraordinary income
Extraordinary loss
Impairment loss
Building demolition expenses
Allowance for absence from work

12

―

12

293

10

―

3
9

10

―

Total extraordinary losses

21

12

Net income before income taxes

491

771

Total income taxes

232

369

Net income

258

401

Profit attributable to owners of parent

258

401

-7-

Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative(Millions of yen)First Quarter of the
Fiscal Year Ended
February 28, 2022
(March 1, 2021 to
May 31, 2021)
Income before minority interests
Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent-8-First Quarter of the
Fiscal Year Ending
February 28, 2023
(March 1, 2022 to
May 31, 2022)
258

401

631
3
(4)
3

(2,791)
20
0
(0)

635
894

(2,770)(2,369)894(2,369)(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition)
The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) from the beginning of the first quarter of the subject fiscal year. Under this accounting
standard, revenue is recognized when control over promised goods or services is transferred tocustomers, in an amount that the Company expects to receive in exchange for those goods or services.
Of note, the Company also applies alternative treatment as stipulated in Paragraph 98 of“Implementation Guidance on Accounting Standard for Revenue Recognition,” under which revenue
from sales in Japan of merchandise or products is recognized at the time of shipment, when the period
between shipment and the time at which control over the subject merchandise or products is transferred
to customers is a normal period.
The main changes resulting from the application Accounting Standard for Revenue Recognition are as
follows.
(1) Revenue recognition pertaining to fee payment transactions
Previously, articles supplied for a fee were derecognized as inventories. However, for fee paymenttransactions determined to be subject to a repurchase agreement, articles supplied for a fee thatremain with the party that received them continue to be recognized as inventories.
(2) Revenue recognition pertaining to agent transactions
Previously, for certain transactions, the gross amount of consideration received from customers wasrecognized as revenue. However, for transactions in which the role of the Group in providing goods
and services to customers corresponds to that of an agent, the net amount of the sum received from
customers, excluding the amount paid to the supplier, is recognized as revenue.
(3) Revenue recognition pertaining to consideration paid to customers
Previously, logistics center fees and other types of consideration paid to customers were treated as
selling, general and administrative expenses, but this has been changed to a method of reduction
from the transaction price. Also, of the expenses treated as selling, general and administrative
expenses, the transport cost for articles necessary to fulfill performance obligations has beenchanged to a method of recording as cost of sales.
(4) Sales with right of return
Sales with right of return have been changed to a method of recognizing the anticipated revenue
from the returned article, less the corresponding amount of cost of sales, as revenue and cost of sales.
The equivalent value of the article anticipated for return is presented in the “Other” item of current
assets as repayment liability, while assets recognized as the rights to recover articles from customers
at the time of settlement of the repayment liability, are presented in the “Other” item of current
assets as returned goods assets.
In adopting the Accounting Standard for Revenue Recognition, the Company followed thetransitional treatment stipulated in the provision of Paragraph 84 of the Accounting Standard for
Revenue Recognition. The cumulative effect of retroactively applying the new accounting policy toperiods before the beginning of the first quarter of the subject fiscal year was added to or deducted fromretained earnings at the beginning of the first quarter of the subject fiscal year, and the new accounting
policy was applied with effect from the opening balance of retained earnings.
As a result, net sales in the first quarter of the subject fiscal year decreased by ¥32 million, while
cost of sales increased by ¥67 million, but the impact on operating income, ordinary income, and profit
before income taxes was negligible. The balance of retained earnings at the beginning of the subject
fiscal year decreased by ¥13 million. Of note, in accordance with transitional treatment as stipulated in-9-Paragraph 28-15 of “Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No. 12,
March 31, 2020), information analyzing the revenue resulting from contracts with customers related to
the first quarter period of the previous fiscal year, is not presented.
(Adoption of Accounting Standard for Fair Value Measurement)
Effective from the beginning of the first quarter of the subject fiscal year, the Company adopted the“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter,“Accounting Standard for Fair Value Measurement”), etc. Under the transitional treatment stipulated in
Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company
decided to adopt the new accounting policy stipulated by the Accounting Standard for Fair Value
Measurement, etc. for the future. There is no impact on the quarterly consolidated financial statements.
(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial
Statements)(Calculation of Tax Expense)
Tax expense has been calculated by rationally estimating the effective tax rate after the application oftax effect accounting for profit before income taxes in the consolidated fiscal year, including the subject
first quarter period, and multiplying this estimated effective tax rate by profit before income taxes.
(Additional Information)(Changes in Presentation Methods)
1. Because “Electronically recorded obligations – operating,” which was previously presented in “Notes
and accounts receivable – trade” in “Current Liabilities,” has increased in importance, it is presented as
an independent item from the first quarter period of the subject fiscal year. Consolidated financial
statements from the previous fiscal year have been recombined to reflect this change in presentation
method.
As a result, in the Consolidated Balance Sheets for the previous fiscal year, ¥738 million presented
in “Notes and accounts receivable – trade” in “Current Liabilities” has been recombined as“Electronically recorded obligations – operating.”
2. As a result of a revision in management practices implemented in conjunction with application of the
Accounting Standard for Revenue Recognition, to more accurately reflect the actual state of the Group,
for real estate lease revenue, which had previously been recorded in “Net sales” and “Non-operating
income,” and rental expenses on real estate, which had previously been recorded in “Selling, generaland administrative expenses” and “Non-operating expenses,” from the beginning of the first quarter ofthe subject fiscal year, the presentation of real estate lease revenue has been changed to recording in“Net sales,” and rental expenses on real estate to “Cost of sales.” Also, in the consolidated balance
sheets, the presentation of noncurrent assets related to the real estate leasing business, which had beenrecorded in “Real estate for investment, net” in “Investments and other assets,” has been changed torecording in “Buildings and structures, net” and “Land.”Consolidated financial statements from the previous fiscal year have been recombined to reflect
this change in presentation method.
As a result, in the Consolidated Statements of Income for the previous first quarter period, ¥18
million presented in “Rent of real estate for investment” in “Non-operating income” has been
recombined in “Net sales,” while ¥115 million presented in “Selling, general and administrative
expenses,” ¥1 million presented in “Depreciation on investments in real estate” in “Non-operating
expenses,” and ¥0 million presented in “Management cost on real estate for investment” in “Nonoperating expenses,” have been recombined in “Cost of sales.”At the same time, in the Consolidated Balance Sheets for the previous fiscal year, ¥431 million
presented in “Real estate for investment, net” in “Investments and other assets,” and ¥84 million in“Buildings and structures, net” in “Property, plant, and equipment,” have been recombined as ¥347
million in “Land.”(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stockcompensation plan (hereinafter, the “Plan”), with eligible persons the Company’s directors (excluding
directors who are audit and supervisory committee members) and directors who are audit and- 10 -

supervisory committee members (excluding outside directors), as well as directors and corporate
auditors (excluding outside corporate auditors) of the Company’s major group companies from
November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible
companies in accordance with rules for granting trust-based stock compensation to corporate officers as
determined by the eligible companies. The Company will contribute funds to the trust, and the trust will
use these funds to acquire the Company’s shares, and grant them to eligible directors. In principle,
directors and other officers will receive the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at theirbook value in the Trust (excluding the amount of ancillary expenses). The book value and number ofshares of such treasury stock was ¥168 million, for 83,926 shares at the end of the previous consolidated
fiscal year, and ¥149 million, for 74,170 shares at the end of the first quarter of the subject consolidated
fiscal year.

- 11 -

(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 28, 2022 (March 1, 2021 to May 31, 2021)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

3,782

4,953

8,735

―

8,735

―

39

39

(39)

―

Total

3,782

4,992

8,775

(39)

8,735

Segment income

102

349

452

(114)

338

Net sales
Net sales to outside
customers
Intrasegment net sales
and transfers

Notes:
1. The adjustment amount of minus ¥114 million for segment income mainly includes amortization of goodwill totaling
minus ¥124 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥125 million and elimination of inter-segment transactions of ¥135 million. Corporate expenses are primarily
general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.
Ⅱ The first quarter of the fiscal year ending February 28, 2023 (March 1, 2022 to May 31, 2022)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

4,104

4,995

9,100

―

9,100

18

205

224

―

224

4,122

5,201

9,324

―

9,324

―

26

26

(26)

―

Total

4,122

5,228

9,351

(26)

9,324

Segment income

193

286

479

(91)

388

Net sales
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Intrasegment net sales
and transfers

Notes:
1. The adjustment amount of minus ¥91 million for segment income mainly includes amortization of goodwill totaling minus¥124 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥114 million and elimination of inter-segment transactions of ¥147 million. Corporate expenses are primarily
general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.
3. “Other revenue” is real estate lease revenue in accordance with the Accounting Standard for Lease Transactions.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.
- 12 -

3. Note regarding changes in reporting segments
As stated in (Additional Information) (Changes in Presentation Methods), for real estate lease
revenue, which had previously been recorded in “Net sales” and “Non-operating income,” and rental
expenses on real estate, which had previously been recorded in “Selling, general and administrative
expenses” and “Non-operating expenses,” from the beginning of the first quarter of the subject fiscal
year, the presentation of real estate lease revenue has been changed to recording in “Net sales,” andrental expenses on real estate to “Cost of sales.” Segment information for the previous first quarter
period presents recombined figures. As a result of this change, compared to the figures prior torecombination, net sales in the Jewelry Business increased by ¥18 million, and segment operating
income increased by ¥16 million.
(Matters Related to Revenue Recognition)
Information analyzing the revenue resulting from contracts with customers is presented in “Notes(Segment information)”.
(Important Subsequent Events)
Not applicable- 13 -