CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 29, 2016
(March 1, 2015 to August 31, 2015)

October 5, 2015

YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code
number 8008.
Representative:
Inquiries:

Hidenori Suzuki, President and Representative Director
Masahiko Iwamori, Executive Director and Executive Officer responsible forOperations
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 15, 2015
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes
Dividend payment commencement date (planned): November 13, 2015
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2015
(March 1, 2015 to August 31, 2015)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)Net sales
Operating Income
Ordinary Income
Net Income
Millions of yen％

FY2015 First Half

24,0481.0

FY2014 First Half

23,815

5.1％

Millions of yen％

Millions of yen

％

2,203

(2.5)

2,382

(6.9)

1,383

(10.3)

2,260

19.2

2,558

13.1

1,542

18.8

Millions of yen

Note: Comprehensive income FY2015 First Half: 1,590 million yen ((9.7)%)
FY2014 First Half: 1,761 million yen (12.8%)
Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

FY2015 First Half

52.03

51.91

FY2014 First Half

56.44

56.32

(2) Consolidated Financial Position
Total Assets
Millions of yen

August 31, 2015

Net Assets to Total
AssetsNet Assets per Share%Yen

44,44275.1

1,720.56

45,83075.1

1,722,67

Net Assets
Millions of yen

59,08360,990February 28, 2015
(Reference)
Shareholders’ equity: August 31, 2015: 44,395 million yen
February 28, 2015: 45,787 million yen

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2014
Fiscal 2015
Fiscal 2016
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

16.00
20.00

—

16.00

32.00

—

20.00

40.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 29, 2016: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 29, 2016
(March 1, 2015 to February 29, 2016)(% figures for the full fiscal year represent year-on-year increase or decrease)
Net Income
Operating Income
Ordinary Income
Net Income
per Share

Net Sales
Millions of yen

Fiscal year
endingFebruary 29,
2016

52,500%

3.5

Millions of yen

%

5,800

6.1

Millions of yen

6,700

%

7.8

Millions of yen

4,100

%

Yen

12.6

154.23

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 29,
2016: No

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: No(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 theperiod-end:
August 31, 2015: 29,331,356 sharesFeb. 28, 2015: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2015: 3,528,072 sharesFeb. 28, 2015: 2,752,078 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2015 First Half: 26,583,683 shares
FY2014 First Half: 27,330,036 shares
The number of recorded treasury stock is inclusive of 194,100 of the Company’s shares held by
the YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust Account as ofthe end of the quarterly fiscal period.
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the first half of fiscal 2015 is not subject to the quarterly review procedures
stipulated in the Financial Instruments and Exchange Act of Japan. As of the date of disclosure of thisreport, the review procedures for the quarterly financial statements under the Financial Instruments andExchange Act had not been completed.
Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
The forecasts of operating results and other items concerning the future contained in this document are
based on management’s assumptions and beliefs that are determined to be reasonable in light of currently
available information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety of factors
actual results may differ materially from forecasts. For the assumptions that underpin operating results
forecasts as well as cautionary notes on the use of operating results forecasts, please refer to “Explanationof Consolidated Results Forecasts and Other Future Predictions” on page 5.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

5(2)Explanation of Financial Condition

5(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Summary Information (Notes)

5(1)Changes in Important Subsidiaries During the Period

5(2)Application of Special Accounting Practices in the Preparation of the Quarterly

5

Consolidated Financial Statements

3.

(3)

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

5(4)Additional Information

6

Consolidated Quarterly Financial Statements

7(1)

Consolidated Quarterly Balance Sheets

7(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

9Comprehensive Income
Consolidated Quarterly Statements of Income

Second Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income(3)

Consolidated Quarterly Statements of Cash Flows(4)

Notes to Consolidated Quarterly Financial Statements

Second Quarter Cumulative

9
10
11

(Notes Regarding Going Concern Assumptions)

12(Notes Regarding Substantial Changes in Shareholders’ Equity)

12(Segment Information)

12

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
Despite signs of a recovery in the Japanese economy due mainly to higher earnings at certain companies
and an improvement in employment conditions during the first half (March 1, 2015 to August 31, 2015)
of fiscal 2015, the fiscal year ending February 2016 (March 1, 2015 to February 29, 2016), the outlook
for future market conditions became increasingly uncertain. This uncertainty largely reflected such factors
as the decline in real wages as well as prolonged sluggishness in consumer spending and concerns
surrounding an increase in interest rates in the U.S. and the downside risks associated with overseas
economies including China.
Turning to the retail industry, and despite signs of inbound demand in major metropolitan areas,
conditions remained unstable on the back of a persistent trend toward frugality and the continued
polarization of consumption.
Under these circumstances, during the fiscal year ending February 2016, the initial year of the fourth
medium-term management plan, the YONDOSHI HOLDINGS Group will nurture human resources,
bolster product capabilities, and assess market trends, with the aim of becoming a century-old company
and brand. Further, we will practice CSR-based management to establish a highly trusted corporate group,and endeavor to enhance corporate value by strengthening internal controls, providing shareholder returns,
and making medium to long-term investments linked to earnings growth.
As a result, net sales amounted to ¥24,048 million (up 1.0% YoY) for the second quarter cumulative
period of fiscal 2015. From a profit perspective, operating income came to ¥2,203 million (down 2.5%
YoY). Ordinary income was ¥2,382 million (down 6.9% YoY) and net income was ¥1,383 million (down
10.3% YoY). Against the forecast of an increase in revenue and decrease in earnings for the period underreview reflecting the rush in demand that preceded the consumption tax rate hike in the previous year,
results were steady with both sales and profits exceeding plans.
Operating results by business segment were as follows.
YONDOSHI HOLDINGS revised its business segment classifications from the first quarter of the subject
fiscal year (ending February 2016). Year-on-year comparative data is after restating figures for thecorresponding period of the previous fiscal year in accordance with revised business segmentclassifications.
Jewelry BusinessAt the F.D.C. Products Group, sales at mainstay 4°C brand jewelry stores were robust as a result of avariety of factors including successful efforts aimed at renovating existing locations, expanding the rangeof items, broadening operating zones, and rolling out composite stores. In addition, energies werechanneled toward strengthening sales promotions at 4°C BRIDAL stores and to proactively maintain thegroup’s focus on opening new canal4°C store locations. As a result, sales substantially exceeded thelevels recorded in the previous year. Moreover, also exceeded plans at Luria 4°C, which handles mainly
purses and other small leather goods.
Accounting for each of these factors, both net sales and operating income in the Jewelry Businesssegment reached record highs for a fourth and sixth consecutive fiscal period, respectively. In specificterms, net sales amounted to ¥13,555 million (up 6.7% YoY) and operating income was ¥2,270 million(up 4.7% YoY).
Apparel BusinessIn the Apparel Business segment, the AS’TY Group continued its plan to shift production to Bangladesh.
Despite these efforts, the company struggled due to such factors as the slump in market conditions. While
MISUZU Co., Ltd. made efforts to spur sales at existing stores by strengthening individual products andpromotional activities, the company also encountered difficulties owing mainly to weak trends at stores inmetropolitan areas. age Co., Ltd. reported an increase in revenue and earnings. This was largely
attributable to strong operating trends and the year-on-year increase in sales at existing stores of thecompany’s mainstay everyday fashion brand PALETTE.
As a result, net sales in the Apparel Business segment amounted to ¥10,492 million (down 5.6%
YoY). The Group incurred an operating loss of ¥32 million compared with operating income of ¥188
million in the corresponding period of the previous fiscal year.

-4-(2) Explanation of Financial Condition
Assets, Liabilities, and Net Assets
Looking at the Company’s financial condition as of the end of the second quarter (August 31, 2015) of
the fiscal year ending February 29, 2016, total assets stood at ¥59,083 million, a decrease of ¥1,906
million compared with the end of the previous fiscal year. The major movements during the period underreview were a decrease in short-term investment securities of ¥2,000 million and an increase ininvestment securities of ¥585 million. Total liabilities amounted to ¥14,640 million, down ¥518 million
compared with the previous fiscal year-end. Turning to the principal movements in liabilities, notes andaccounts payable ― trade grew ¥231 million while income taxes payable declined ¥625 million. Total net
assets as of the end of period under review stood at ¥44,442 million, ¥1,387 million higher than thebalance as of February 28, 2015.
Cash Flows
Cash and cash equivalents as of the end of the period under review stood at ¥847 million, a decrease of¥3,105 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥408 million compared with ¥538 million for thecorresponding period of the previous fiscal year. The major cash inflow came from income before
oncome taxes of ¥2,217 million. This was partially offset by the principal cash outflow arising fromincome taxes paid of ¥1,398 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥739 million compared with net cash provided by investing
activities of ¥287 million for the corresponding period of the previous fiscal year. The primary cash
outflow was for the purchase of noncurrent assets of ¥616 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥2,775 million up from ¥590 million for the corresponding
period of the previous fiscal year. This largely reflected purchase of treasury stock of ¥3,151 million.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 13, 2015.

2. Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period
Not applicable(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
Changes in accounting policies(Application of the accounting standard for retirement benefits)
We have adopted the Accounting Standard for Retirement Benefits (ASBJ Statement No.26 issued on
May 17, 2012; hereinafter, the “Accounting Standard for Retirement Benefits”) and the Guidance on
Accounting Standard for Retirement Benefits (ASBJ Guidance No.25 issued on May 17, 2012; hereinafter,
the “Guidance on Accounting Standard for Retirement Benefits”) in accordance with the provisions ofArticle 35 of the Accounting Standard for Retirement Benefits and those of Article 67 of the Guidance on
Accounting Standard for Retirement Benefits starting from the first quarter under review. We reviewed
the calculation methods of retirement benefit obligations and service costs, and changed the method of
attributing all contributions over all periods to periods of service based on the benefit formula instead ofon a straight-line basis, as well as the method of determining a discount rate from the use of a discountrate based on the number of years similar to that of the average remaining service period of employees to-5-the use of a single weighted average discount rate that reflects the estimated payment period of retirement
benefits and the amount per that period.
We adopt these accounting standard and guidance in accordance with the transitional treatment
specified in Article 37 of the Accounting Standard for Retirement Benefits. Amounts occurred due to suchchanges in calculation methods are recognized by adding to or deducting from retained earnings at the
beginning of the second quarter cumulative period under review.
As a result, net defined benefit asset at the beginning of the subject second quarter cumulative period
increased ¥8,991 thousand, net defined benefit liability decreased ¥28,409 thousand, and retained
earnings increased ¥24,928 thousand. The effect of this change on the Company’s consolidated profit andloss in the subject second quarter cumulative period is negligible.
(Application of Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees
etc. through Trusts)
The “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts” (ASBJ PITF No. 30, December 25, 2013) was applied effective the second quarter offiscal 2015. With respect to the accounting treatment of trust contracts that were entered into before thebeginning of the first year of the application of the above practical report, the method adopted in the past
will continue to be applied. Accordingly, the application of the above practical report has no effect on the
consolidated quarterly financial statements.
(4) Additional Information(Change in Presentation Method)
Through the second quarter cumulative period of the previous fiscal year, “net sales” and “other operating
revenue” was presented individually. However, because of a decline in the materiality of “other operating
revenue” with regard to consolidated results, from the first quarter of the subject fiscal year, this item ispresented included in “net sales.”Consolidated quarterly financial statements for the second quarter cumulative period of the previous
fiscal year have been recombined to reflect this change in the presentation method. As a result, the¥427,099 million presented as “other operating revenue” in the Consolidated Statements of Income forthe second quarter cumulative period of the previous fiscal year has been recombined as “net sales.”-6-3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Second Quarter ofFebruary 28, 2015

the Fiscal Year Ending(As of February 28, 2015)

February 29, 2016
(As of August 31, 2015)

ASSETS
Current assets:
Cash and deposits

1,952,933

847,122

Notes and accounts receivable ― trade

3,451,619

3,656,637

Short-term investment securities

2,000,000―

Merchandise and finished goods

7,383,018

7,866,934

Work in process

871,733

801,765

Raw materials and supplies

723,203

760,552

Other current assets

928,872

844,327

Allowance for doubtful accounts(7,625)(10,241)

17,303,755

14,767,097

Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net

5,546,145

6,026,203

Land

5,528,465

5,528,465

Other, net

1,428,388

1,086,242

Total property, plant and equipment

12,502,999

12,640,911

5,709,806

5,461,553

Intangible assets:
Goodwill
Other intangible assets

565,366

471,636

Total intangible assets

6,275,172

5,933,190

Investment securities

20,025,792

20,611,786

Prepaid pension cost

614,916

648,227

4,384,391

4,595,194

Investments and other assets:

Other
Allowance for doubtful accounts(116,688)(112,778)

Total investments and other assets

24,908,410

25,742,429

Total noncurrent assets
Total assets-7-

43,686,583

44,316,530

60,990,338

59,083,628

５．（要約）四半期連結財務諸表(Thousands of yen)
End of the Fiscal Year Ended

End of the Second Quarter ofFebruary 28, 2015

the Fiscal Year Ending(As of February 28, 2015)

February 29, 2016
(As of August 31, 2015)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade4,170,142

4,401,730

Short-term loans payable

48,310300,000

Income taxes payable

1,399,367

774,306

Provision for bonuses

355,684

278,545

Provision for directors' bonuses

41,94632,502

Other

4,371,894

3,508,708

Total current liabilities

10,387,344

9,295,792

Noncurrent liabilities:―

536,920

Provision for directors' retirement benefits

385,296

403,874

Net defined benefit liability

614,881597,056

Asset retirement obligations

1,002,570

1,026,160

Other

2,769,597

2,781,043

Long-term loans payable

Total noncurrent liabilities
Total liabilities

4,772,345

5,345,055

15,159,689

14,640,848

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,226,705

18,142,413

Retained earnings

27,049,761

28,016,057

Treasury stock(3,284,842)(5,841,040)

Total shareholders’ equity

44,478,145

42,803,951

1,481,751

1,691,763

Other accumulated comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

13,339(5,884)(233,476)(158,063)

Foreign currency translation adjustments

85,05491,700Remeasurements of defined benefit plans(37,476)(27,471

Total other accumulated comprehensive income

1,309,192

1,592,044

Subscription rights to shares
Total net assets
Total liabilities and net assets-8-

43,311

46,78445,830,648

44,442,780

60,990,338

59,083,628

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Thousands of yen)First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2015

February 29, 2016

(March 1, 2014 to(March 1, 2015 toAugust 31, 2014)

August 31, 2015)

Net sales

23,815,042

24,048,617

Cost of Sales

10,520,947

10,414,905

Gross profit

13,294,095

13,633,711

Selling, general and administrative expenses

11,033,300

11,430,098

Operating income

2,260,794

2,203,613

Non-operating income
Interest income

6,989

9,486

Dividends received
Equity in earnings of affiliates

41,731

48,728

177,661

46,676

Rent of real estate for investment

50,97044,880Foreign exchange gains

9,201

9,591

Other

54,25853,937

Total non-operating income

340,811

213,300

Non-operating expenses
Interest expenses

1,201

268

Depreciation of real estate for investment

2,984

2,940

Management cost for real estate for investment

1,023

1,023

Commission for purchase of treasury stock

35,36425,006

Other

2,079

4,724

Total non-operating expenses

42,65333,962

2,558,952

2,382,950

Gain on sales of noncurrent assets

47,797

Gain on liquidation of stocks of subsidiaries and affiliates

104,118
152,665――――

Impairment loss

70,350134,948

Loss on closing of stores

20,147

6,359

Building demolition costs―

24,372

Ordinary income
Extraordinary income

Other

750

Total extraordinary income
Extraordinary loss

Other

8,880

―

Total extraordinary losses

99,378

165,680

Net income before income taxes

2,612,239

2,217,270

Income taxes ― current

870,957

777,946

Income taxes ― deferred

198,790

56,2791,069,747

834,225

Total income taxes
Income before minority interests

1,542,492

1,383,044

Net income

1,542,492

1,383,044-9-

Consolidated Quarterly Statements of Comprehensive Income
Second Quarter Cumulative(Thousands of yen)

Income before minority interests

First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2015

February 29, 2016

(March 1, 2014 to(March 1, 2015 toAugust 31, 2014)

August 31, 2015)

1,542,492

1,383,044

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

143,464

188,123

Deferred gains or losses on hedges
Foreign currency translation adjustments

16,394(19,446)(16,436)

6,645

Remeasurements of defined benefit plans―

10,00576,053

22,111

219,476
1,761,968

207,439
1,590,483

1,761,968

1,590,483――

Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests- 10 -

(3) Consolidated Quarterly Statements of Cash Flows(Thousands of yen)First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2015

February 29, 2016

(March 1, 2014 to(March 1, 2015 toAugust 31, 2014)

August 31, 2015)

Cash flows from operating activities:
Income before income taxes
Impairment loss

2,612,239

2,217,270

70,350134,948

Increase (decrease) in allowance for doubtful accounts(464,205)(1,294)

Increase (decrease) in provision for bonuses(161,814)(77,138)

Increase (decrease) in provision for retirement benefits

1,496,590――(3,729)

Increase (decrease) in net defined benefit liability
Increase (decrease) in other provisionInterest and dividends income
Interest expenses
Equity in (earnings) losses of affiliates
Foreign exchange losses (gains)
Loss (gain) on sales of noncurrent assets
Loss (gain) on liquidation of stocks of subsidiaries andaffiliates
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Increase (decrease) in accounts payable-other

7,664

9,134

(48,721)(58,215)

1,201

268

(177,661)(46,676)(988)(2,245)(47,797)―(104,118)―(1,138,335)(201,126)(129,355)(449,259)(108,250)

231,036

318,757(518,963)

Increase (decrease) in advances received(175,796)(3,072)Other, net(101,883)

456,618

Subtotal

1,847,874

1,687,553

Interest and dividends income received

103,102

119,157

Interest expenses paid

(1,201)(268)(1,411,701)(1,398,324)

538,075

408,117(624,186)(616,020)

57,000190

Purchase of securities(500,000)

Proceeds from redemption of securities

1,400,000――

Purchase of investment securities(209,124)(9,667)104,118―

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of noncurrent assets
Proceeds from sales of noncurrent assets

Proceeds from liquidation of stocks of subsidiaries andaffiliates
Other

60,025(114,442)

Net cash provided by (used in) investing activities

287,831(739,940)――

300,000

Proceeds from long-term loans payable
Repayment of long-term loans payable(50,900)(61,190)

Purchase of treasury stock(741)(3,151,408)

Proceeds from sales of treasury stock

52,82955,623

Cash dividends paid

(499,282)(441,676)

Other, net(92,671)(26,457)

Net cash provided by (used in) financing activities(590,766)(2,775,310)

Cash flows from financing activities:
Net increase (decrease) in short-term loans payable

549,800

Effect of exchange rate changes on cash and cash equivalents(6,418)

1,322

Net increase (decrease) in cash and cash equivalents

228,721(3,105,810)

Cash and cash equivalents at beginning of period

4,093,415

3,952,933

Cash and cash equivalents at end of period

4,322,137

847,122- 11 -

(4) Notes to Quarterly Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Segment Information)
Ⅰ The first half of the fiscal year ended February 28, 2015 (March 1, 2014 to August 31, 2014)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

12,704,682

11,110,359

23,815,042―

23,815,042

22,290383,443

405,734(405,734)

―

Total

12,726,973

11,493,803

24,220,776(405,734)

23,815,042

Segment income

2,167,840

188,2822,356,123(95,328)

2,260,794

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥95,328 thousand for segment income mainly includes corporate expenses that are notallocated to individual reporting segments. 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 half of the fiscal year ending February 29, 2016 (March 1, 2015 to August 31, 2015)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

13,555,619

10,492,997

24,048,617―

24,048,617

25,023445,946

470,969(470,969)―

13,580,643

10,938,943

24,519,586(470,969)

24,048,617

2,270,500(32,145)

2,238,354(34,741)

2,203,613

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income or loss

Notes:
1. The adjustment amount of minus ¥34,741 thousand for segment income or loss mainly includes corporate expenses thatare not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income or loss figures have been adjusted to operating income on the consolidated quarterly income
statements.

- 12 -

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.

3. Information concerning changes to reporting segments, etc.
The YONDOSHI HOLDINGS Group had previously classified its reporting segments as “F.D.C.
Products Group,” “AS’TY Group,” “MISUZU,” and “age,” based on the respective businesscompanies. In recent years, the brand SPA (Specialty store retailer of Private label Apparel)business centered on 4°C brand jewelry has come to comprise a larger proportion of the corporategroup, and with the idea of evolving into a company closer to customers, from the subject fiscal
year we have changed the classifications to two segments, the “Jewelry Business” and “ApparelBusiness,” based on principle products handled.
Accordingly, the former “F.D.C. Products Group” has been changed to “Jewelry Business,” and“The AS’TY Group,” “MISUZU,” and “age” consolidated as “Apparel Business.”
Comparative segment information between the second quarter cumulative period of the fiscal
year ending February 29, 2016 and the corresponding period of the previous fiscal year is provided
on a revised reporting segment basis.

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