YONDOSHI HOLDINGS INC.
First Section, Tokyo Stock Exchange (8008)

Investors’ Presentation
Results for the First Half of Fiscal 2016
(The Fiscal Year Ending February 28, 2017)
October 11, 2016

Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2016, the Fiscal YearEnding February 28, 2017
Ⅱ. Business Results Forecasts for Fiscal 2016 as well as Priority Issues andMeasures for the Second Half
Ⅲ. Progress under the 4th Medium-Term Management Plan

Hidenori Suzuki, President and Representative Director. YONDOSHI HOLDINGS INC.
Note: Amounts identified in this report are presented in millions of yen rounded down. Percentage figures are calculated from raw data.

Disclaimer: Operating forecasts and forward-looking statements that are not of historic fact are based on information available
to management as of the date of this report. Subject to a variety of risks and uncertainties, these forecasts and forward-looking
statements may differ substantially from actual results due to a diversity of factors including changes in the Company’s
operating environment, market trends and fluctuations in foreign currency exchange rates. As a result, readers are advised not
to rely solely on the information provided as the basis for investment decisions.

2Overview of Consolidated Operating Results (1)Despite a decrease in net sales, trends in earnings in excess of plans withprofits reaching record highs at each major level
Net sales: ¥22,935 million (-4.6% YoY)
Operating income: ¥2,704 million (+22.7% YoY)
Ordinary income: ¥3,273 million (+37.4% YoY) Net income: ¥2,081 million (+50.6% YoY)
(Millions of yen)

Net sales

Operating income

Ordinary income

2,081

3,273

2,704

24,048Net income

22,935
2,203
2,381
1,381

－4.6%

1H FY2015
1H FY2016
Actual Results Actual Results+22.7%+37.4%

1H FY2015
1H FY2016
Actual Results Actual Results

1H FY2015
1H FY2016
Actual Results Actual Results+50.6%

1H FY2015
1H FY2016
Actual Results Actual Results

3Trends in Net Sales Excluding the Impact of the Sale of MISUZU Co., Ltd.

MISUZU Co., Ltd. sold in April 2016
Increase in net sales after excluding the impact of the sale of MISUZU
Co., Ltd. (+5.8% YoY)YoY movement in net sales after excluding the impact of the sale of MISUZU Co., Ltd.
(Millions of yen)

24,048MISUZU Co.,
Ltd. Net Sales

22,935

2,370

21,6781H FY2015 Actual Results＋1,256(＋5.8%)

1H FY2016 Actual Results
4Improvement in Profit Margins
Improvement in the earnings structure; decrease in the breakeven point

60

53.3

54.1

54.1

50.3

50.2

48.0

55.0

55.1

46.3

46.8

55.8

56.7

58.1

46.3

47.5

46.3

48.7
50
45.5
40
30

Substantial
improvement of+2.6pt

20
10

3.2

3.1

3.9

6.0

8.7

8.4

9.5

9.2

11.8

0
2009.2.2Q 2010.2.2Q 2011.2.2Q 2012.2.2Q 2013.2.2Q 2014.2.2Q 2015.2.2Q 2016.2.2Q 2017.2.2Q
Gross Profit Margin

Operating Expenses Ratio

Operating Income Margin

5

Operating Income
Operating income: ¥2.7 billion (+22.7% YoY)
Operating income margin :11.8% (+2.6pt YoY)
Cost of sales ratio
1H FY2015 1H FY 2016
43.3% ⇒ 41.9%－1.4pt(Millions of yen)

SG&A expenses to net sales ratio
1H FY2015 1H FY 201647.5 % ⇒ 46.3%－1.2pt－811－ 1,1122,203

Initial plan

Operatingincomemargin10.5%

9.2%
1H FY2015(2015/8)

Net sales

Cost of sales

2,704

2,450

－ 801

OperatingincomemarginOperating income

Actual

SG&A expenses

Operatingincomemargin11.8%

Operating income
1H FY2016(2016/8)

6

Overview of Consolidated Operating Results (2)1H FY2015 (2015/8)(Millions ofyen, %)

ActualResults(%)

1H FY2016 (2016/8)
Plans

(%)

1H FY2016 (2016/8)
ActualResults(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

24,048100.0

23,300100.0

22,935

100.0

－4.6

－1.6

Gross profit

13,63356.7

13,43956.913,322

58.1

－2.3

－0.9

Gross profit
margin (%)

56.7+1.4pt+1.2pt56.9

58.1

Selling, general andadministrative(SG&A) expenses

11,43047.5

10,98947.1

10,618

46.3

－7.1

－3.4

Operatingincome

2,203

9.2

2,450

10.5

2,704

11.8

+22.7

+10.4

Ordinary
income

2,381

9.9

3,000

12.9

3,273

14.3

+37.4

+9.1

Net income

1,381

5.7

2,000

8.6

2,081

9.0

+50.6

+4.1

7

Trends in Operating Income, Ordinary Income, and Net Income(Millions of yen/ %)Levels of Revenues andEarnings

1Q
FY20152Q
FY2015Net sales

12,306Gross profit
Operating income

1H FY2015(2015/8)

1Q
FY20162Q
FY2016

1H FY2015(2016/8)

Increase /(Decrease)

11,742

24,048

11,588

11,34722,935(1,113)

－4.6

7,083

6,549

13,633

6,831

6,491

13,322

(311)

－2.3

1,348

855

2,203

1,547

1,157

2,704

+501

+10.4

Non-operating income

340

(129)

212

325

277

602

+390

+284.1Non-operating expenses

5

28

33

12

20

33

(0)

－2.1

Ordinary income

1,683

697

2,381

1,860

1,412

3,273

+892

+37.4

Ordinary income

―

―

―

―

―

―

―

―

Extraordinary loss

13

152

165

503

102

605

+440

+365.7

Net income before taxes

1,670

545

2,216

1,357

1,310

2,667

+45

+120.4

Net income

1,212

169

1,381

1,217

864

2,081

+699

+50.6

YoY

8

Trends in Quarterly Business Results
Steady growth in both net sales and operating income
Trends in Net Sales by Quarter
1Q

11,386 11,618'13/2(Millions of yen)

3Q

2Q

4Q

12,672 12,306

11,588

11,239 11,037 11,142 11,742 11,347

11,735 11,803 12,095 12,251

'15/2

'17/2

'13/2

'13/2

'14/2

'16/2

'14/2

'15/2

'16/2

'17/2

'14/2

'15/2

'16/2

14,815
13,876 14,543

'17/2

'13/2

'14/2

Trends in Operating Income by Quarter
1Q

2Q

'15/2

16,583

'16/2

'17/2

(Millions of yen)

3Q

4Q
2,732
1,919

1,560
1,117 1,091

'13/2

'14/2

'15/2

1,348

'16/2

1,547
1,157

'17/2

843

805

700

'13/2

'14/2

'15/2

875

855

'16/2

'17/2

'13/2

1,090 1,043

1,172

'14/2

'16/2

'15/2

2,163

1,451

'17/2

'13/2

'14/2

'15/2

'16/2

'17/2

9

Summary by Segment: Jewelry Business Firm trends in net sales and profits; increase in revenues andrecord high earnings
 Increase in revenues attributable to robust results at new stores andsubstantial e-commerce business growth Trends in platinum prices below expectations; improvementin the gross profit margin
 Mainstay 4ºC jewelry: Firm trends canal 4ºC: Increase in the number of customers and continued
robust results due to the introduction of new products and successful
efforts to invigorate sales areas Luria 4ºC: Robust trends; the opening of new stores also
contributed to sales growth MAISON JEWELL: Substantial growth also attributable to robust
results in bridal jewelry

10Overview of Business Results by Segment～The Jewelry Business(Millions of yen)

Net sales

Operating income

Ordinary income

2,432

2,489

14,541
13,555

Net income

2,364

1,626

1,559

2,270

+7.3%

1H FY2016
1H FY2015
Actual Results Actual Results

1H FY2015
Actual Results

1H FY2016
Actual Results

1H FY2015 (2015/8)(Millions ofyen, %)

ActualResults

+5.3%

+7.1%

(%)

1H FY2015
Actual Results+4.2%

1H FY2016
Actual Results

1H FY2015
Actual Results

1H FY2016 (2016/8)
Plans

(%)

ActualResults(%)

1H FY2016
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

13,555100.0

14,768100.0

14,541

100.0

+7.3

－1.5

OperatingincomeOrdinary
income

2,270

16.7

2,356

16.0

2,432

16.7

+7.1

+3.2

2,364

17.4

2,419

16.4

2,489

17.1

+5.3

+2.9

Net income

1,559

11.5

1,569

10.6

1,626

11.2

+4.2

+3.6

(* Effective from the fiscal year under review, figures disclosed after accounting for intersegment net sales and transfers.)

11Summary by Segment: Apparel Business Increase in revenues and earning (※)

 Successful efforts to rebuild the business; substantial improvementin operating income
 Apparel manufacturing business: Improvement in the external
environment owing mainly to the strong yen; successful efforts tostrengthen business activities with major customers by making themost of product proposal capabilities and overseas manufacturingbases
 Everyday fashion brand PALETTE: Successful efforts to control
the decline in prices through the management of inventories;
substantial increase in profit margins（※after excluding the impact of the sale of MISUZU Co., Ltd.）

12

Overview of Business Results by Segment～The Apparel Business(Millions of yen)

Net sales

Operating income

10,492

Ordinary income

Net income

381

304
8,393

177

+273.2%+ ¥336 million－20.0%+ ¥220 million

102－32
1H FY2015
Actual Results

1H FY2016
Actual Results

1H FY2015
Actual Results

1H FY2016
Actual Results

1H FY2015 (2015/8)(Millions of yen, %)ActualResults

(%)

－43

△34
1H FY2015
1H FY2016
Actual Results Actual Results

1H FY2015
Actual Results

1H FY2016 (2016/8)
Plans

ActualResults(%)(%)

1H FY2016
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

10,492

100.0

8,528

100.0

8,393

100.0

－20.0

－1.6

Operating income (loss)

(32)

―

176

2.1

304

3.6

+ ¥336 million+72.4

Ordinary income

102

1.0

290

3.4

381

4.5

+273.2+31.4+ ¥220 million
(43)
―
197
2.3
177
2.1
(* Effective from the fiscal year under review, figures disclosed after accounting for intersegment net sales and transfers.)－10.4

Net sales

Net income (loss)

13

Overview of Financial Position and Cash Flows (Consolidated) Total assets, liabilities, and net assets stood at ¥59.6 billion, ¥13.6 billion,and ¥45.9 billion, respectively
 Cash flows from financing activities: Purchased treasury stock totaling¥860 million and paid cash dividends of ¥660 million as a part of efforts toreturn profits to shareholders
Financial Position

Cash Flows
2016年8月末時点

Total assets¥45.9 billion

Net assets¥59.6 billion

Total liabilities¥ 13.6 billion

1H FY2015(2015/8)

1H FY2016(2016/8)

Increase(Decrease)

Operatingcash flows

408

738

+330

Investingcash flows(739)(1,404)(664)

Financing
cash flows(2,775)(1,519)+1,255Free
cash flows

(331)

(665)

+333

(Millions of yen)

14

Status of Store Openings and Closures as well as Plans
 The number of stores opened in the Jewelry Business exceeded plans
Store opening plan as of the beginning of the period: 16; Stores opened during the 1H: 14;
Store opening plan for the 2H including overseas stores: 7 (+5 compared with plans) Opened 2 PALETTE stores in the Apparel Business; Plan to open 2 stores including sales
agent stores in the 2H
Jewelry BusinessApparel BusinessJapan

FY2015(2015/2)
FY2016
1H
ActualResults(2016/8)

FY20162H Plan(2017/2)

BridalShop

Fashion
Building

Overseas

age

MISUZU
Co., Ltd.

Total*

Roadsidebutique

Department
store

Fiscalyearend

6

88

39

75

208

6

76

67

340

Storesopened

0

6

0

8

14

0

2

―

16

Storesclosed

1

3

0

1

5

1

0

―

6

2Hend

5

91

39

82

217

5

78

―

283

Storesopened

0

0

0

5

5

2

2

―

8

Storesclosed

0

3

0

0

3

0

0

―

3

Fiscalyearend

5

88

39

87

219

7

80

―

288

Total

Co., Ltd.*(* Jewelry sales agent stores at age Co., Ltd. Store adjustment as of the end of the fiscal year ended February 29, 2016 (-17).
Store adjustment as of the end of the fiscal year ending February 28, 2017 (-18) due to the opening of 1 store during the 2H of the fiscal year under review. 15

Status of the Number of Domestic Brand Stores in the Jewelry Business Increase in stores handling jewelry owing mainly to the promotion of a mix of brands
 Increase in stores handling bags due largely to an upswing in the opening of Luria 4ºC stores
4ºC

4ºC
FY2015(2015/2)

FY2016
1H Actual
Results(2016/8)

FY2016 2H
Plan(2017/2)

BRIDAL

canal 4ºC

Other*

Jewelry
Total

4ºC bags

Luria 4ºC

Bag Total

Fiscalyear-end

93

48

45

25

211

49

19

68

Storesopened

4

1

2

14

21

6

8

14

Storesclosed

4

0

0

1

5

3

0

3

2H-end

93

49

47

38

227

52

27

79

Storesopened

0

0

1

5

6

0

5

5

Storesclosed

1

0

0

2

3

1

1

2

Fiscalyear-end

92

49

48

41

230

51

31

82

※1. Other: EAUDOUCE 4ºC, RUGIADA, MAISON JEWELL, deux et deux
※2. Composite stores that handle multiple brands are recorded as a single store by each individual brand.

16

Return of Profits to Shareholders
 With the basic policy of providing stable and continuous dividends, YONDOSHIHOLDINGS also maintains a flexible approach toward the acquisition of treasury stock⇒ Policy to lift the dividend payout ratio on a progressive basis to 30% over the medium term
⇒ YoY increase of ¥5 per share to ¥25 per share in the interim dividend for the fiscal year ending February 28, 2017
⇒ Plan to pay a cash dividend of ¥50 per share, up ¥10 per share, for the fiscal year ending February 28, 2017
⇒ Undertook the purchase of 400,000 shares of treasury stock in August 2016
(Millions of yen)

(%)

5,000
4,000

82.2

4,277

4,950

85.8

100.0
80.0

3,612

3,000

2,600

2,080

2,000

899

1,000

Net income (left axis)

44.1
1,317 865

1,070

0FY2014 (2015/2)

FY2015 (2016/2)

Total dividends (left axis)

60.0
40.0
20.0

Total amount of treasury
stock purchase (left axis)

0.0

Total payout ratio (right axis)

FY2016 (2017/2) Forecast

FY2014 (2015/2)

FY2015 (2016/2)

FY2016 (2017/2) Forecast

Annual dividends per share (Yen)

32.0

40.0

50.0

Net income per share (Yen)

133.90163.22191.56

23.9

24.5

26.1

2,080

2,600

865

82.2

85.8

44.1

Payout ratio (%)
Total amount of treasury stock purchased(Millions of yen)

Total payout ratio (%)

17

Ⅰ. Overview and Summary of the First Half of Fiscal 2016, the Fiscal YearEnding February 28, 2017
Ⅱ. Business Results Forecasts for Fiscal 2016 as well as Priority Issues andMeasures for the Second Half
Ⅲ. Progress under the 4th Medium-Term Management Plan

18

Business Results Forecasts for Fiscal 2016 (1)Decrease in revenues and increase in earnings; plans to record historic highsin each of operating income, ordinary income, and net income

Net sales: ¥51,500 million (－2.6% YoY)
Operating income: ¥6,550 million (+7.1% YoY)
Ordinary income: ¥7,700 million (+12.3% YoY) Net income: ¥4,950 million (+15.7% YoY)
(Millions of yen)

Net sales
51,50052,883

6,550
Operating income

7,700
Ordinary income
7,700

6,550
51,500－2.6%

FY2015FY2016 Plan
Actual Results

6,113

+7.1%

FY2015FY2016 Plan
Actual Results

4,950
Net income

6,854

4,950
4,277

+12.3%+15.7%FY2015FY2016 Plan
Actual Results

FY2015FY2016 Plan
Actual Results

19Forecast for Net Sales Excluding the Impact of the Sale of
MISUZU Co., Ltd.
Looking also at results for full fiscal period, revenues are forecast to increase
with net sales up 7.2% YoY excluding MISUZU Co., Ltd.
Net Sales Comparison after Excluding the Impact of the Sales of MISUZU Co., Ltd.

52,883
MISUZU Co.,
Ltd. Net Sales

51,500(Millions of yen)

4,875

48,008FY2015 Actual Results＋3,492(＋7.2%)FY2016 Plan
20

Business Results Forecasts for Fiscal 2016 (2)Decrease in revenues and an increase in earnings; operating income and net income
projected to reach record highs for a fifth consecutive period; ordinary income isforecast to reach a record high for a sixth consecutive period
FY2015 (2016/2)(Millions of yen, %)Results

YoY

FY2016 (2017/2)
Plan

(%)

Increase (Decrease)
(%)

(%)

Net sales

52,883100.0

51,500

100.0

－2.6

Gross profit

30,831

58.3

30,10758.5－2.4

Gross profit margin

58.5

58.3

+0.2PtSelling, general andadministrative expenses

24,71746.7

23,55745.7－4.7

Operating income

6,113

11.5

6,550

12.7

+7.1

Ordinary income

6,854

13.0

7,700

14.7

+12.3

Net income

4,277

8.1

4,950

9.6

+15.7
21

Full Fiscal Year Business Results Forecasts by Segment(Figures are after accounting for intrasegment net sales and transfers)

 The Jewelry Business is projected to generate continued growth inrevenues and earnings
 The Apparel Business will continue to promote established policies
FY2015(2016/2)(Millions of yen, %)Results

The Jewelry
Business

The ApparelBusiness

FY2016 (2017/2)
1H Results

Full Fiscal YearYoY

Net sales

31,88013,55534,076+6.9

Operating income

5,831

2,270

6,129

+5.1

Ordinary income

5,970

2,364

6,248

+4.7

Net income

3,836

1,559

3,930

+2.5

Net sales

21,003

8,393

17,294－17.7

Operating income

188

304

459

+143.5

Ordinary income

472

381

679

+43.8

Net income

225

177

435

+93.1

22

Results in the 1H of Fiscal 2016 and Major Measures in the 2H

 Major results in the 1H(1) Upswing in the opening of Luria 4ºC and other stores 14 newly opened stores(2) Increase in sales of renovated stores
Cumulative net sales of 14 stores renovated during the previous period: +13.7% YoY
Cumulative net sales of 6 stores renovated during the period under review: +11.0% YoY(3) MAISON JEWELL growth(4) Jewelry Business: Net sales +7.3% YoY; operating income +7.1% YoY(5) Apparel Business: Net sales +1.5% YoY (excluding MISUZU)
Substantial improvement in operating income at roughly¥300 million

 Major measures in the 2H(1) Continue to open new stores and renovate existing stores in line with plans(2) Strengthen 4ºC BRIDAL products and sales promotion measures(3) Respond to the growing polarization of consumption(4) Implement measures for the Christmas season when demand is at its peak(5) Further expand the e-commerce business(6) Cultivate the suburban shopping center channel by nurturing the MAISONJEWELL brand(7) Continue to promote established policies in the Apparel Business
23

Fiscal 2016 2H Priority Measures― Jewelry Business: Continue to Open New and Renovate Existing Stores Plan to open 5 new stores in the 2H focusing mainly on fashion buildings

 Continue to promote a brand mix policy
Bring to fruition a wide range of items at stores by rolling out composite andadjacent brand stores(Luria 4ºC Utsunomiya Tobu Department Store )( 4ºC Sendai PARCO 2 Store (* Composite store))24

Fiscal 2016 2H Priority Measures― Jewelry Business: Strengthen 4ºC BRIDAL Products and Sales
Promotion Measures Increase the appeal of products by upgrading and expanding the use of high-grade
materials including pure platinum
 Reduce opportunity loss by upgrading and expanding store inventories over andabove order stock Increase the number of customers visiting stores through sales and promotion
initiatives

25

Fiscal 2016 2H Priority Measures― Jewelry Business: Respond to the Growing Polarization of Consumption
 Expand the number of items that address the growing polarization of consumption
by upgrading and expanding the lineup of products priced to reflect the use of
expensive materials and through such measures as the introduction of new eternalsilver brand products( 4ºC Jewelry platinum necklace)(4ºC eternal silver brand necklace)26

Fiscal 2016 2H Priority Measures― Jewelry Business: Implement Measures for the Christmas Season
When Demand is at its Peak
 Strengthen TV commercials targeting the peak Christmas season
 Increase the awareness of men toward the 4ºC brand by placing advertisements innational newspapers(2016 Christmas advertisement image)(4ºC brand product limited to the Christmas season)

27

Fiscal 2016 2H Priority Measures― Jewelry Business: Further Expand the e-commerce Business Remain focused on pushing forward substantial growth in the e-commercebusiness, building on the 47% YoY upswing in the 2H
 Newly opened a designated bridal ring site on August 1(4ºC BRIDAL official online store)

28

Fiscal 2016 2H Priority Measures― Jewelry Business: Nurture the MAISON JEWELL Brand
 Robust results in MAISON JEWELL brand bridal jewelry with substantial YoY
growth of 38.6%
 Plans to open a store in AEON Mall Hiroshima Fuchu in the 2H; expectations
regarding efforts to further cultivate the suburban shopping center channel(MAISON JEWELL Koshigaya Store)(MAISON JEWELL bridal ring)29

Fiscal 2016 2H Priority Measures― Apparel Business: Continue to Promote Established Policies
 Apparel manufacturing business: Strengthen competitive advantage by
harnessing the ability to address ODM and OEM customers’ needs
 Upgrade and expand material procurement capabilities as well as overseas
manufacturing bases in a bid to address the detailed needs of customers andstrengthen product proposal capabilities
 Shift roughly 50% of overseas production volume to Bangladesh Everyday fashion brand business: Continue to open PALETTE stores thatreinforce the Group’s dominant position in the Kansai area
 Plans to open 1 store in the 2H; work to increase market share and visibility
 Capture and expand blue chip customers utilizing the point card system Upgrade and expand the product lineup of women’s merchandise as well aspractical and bedding items

30

Ⅰ. Overview and Summary of the First Half of Fiscal 2016, the Fiscal YearEnding February 28, 2017
Ⅱ. Business Results Forecasts for Fiscal 2016 as well as Priority Issues andMeasures for the Second Half
Ⅲ. Progress under the 4th Medium-Term Management Plan

31

Basic Policies of the Fourth Medium-Term Management Plan
― Numerical Vision
Revision to the numerical vision for consolidated net sales in FY2017
following the sale of MISUZU Co., Ltd.
Initial Numerical
Visions

Consolidated net sales

Ordinary income
ROE

Revised Numerical
Visions¥60.0 billion¥55.0 billion

or moreor more¥8.0 billion¥8.0 billion

or moreor more

10.0%

10.0%

or moreor more32

Progress under the 4th Medium-Term Management Plan
Steadfastly implemented priority measures
Priority Strategies

Progress in the 1H of the second fiscal year of the plan

Pursue an aggressive store opening strategy; plans toopen 70 new stores* over the three-year period

Opened 49 new stores as of the end of August 2016

・Rolled out 27 new Luria 4ºC stores as of the end of

Develop businesses that will play
an important role in the next setof growth strategies

Expand the scale of business bycontinuing to push forward theGroup’s five growth engine pillars

August 2016
・Robust results in MAISON JEWELL brand bridal
jewelry with substantial YoY growth of 38.6%
・Release of a designated bridal ring online site・Continued to gather know-how utilizing the Group’s
local subsidiary in Shanghai with the aim of expanding
stores in China

・Steady trends in 4ºC jewelry

・Continued robust canal 4ºC results
・Successful efforts to rebuild the apparel manufacturingbusiness
・Increased profits in the everyday fashion business
PALETTE brand33

Toward Stable and Sustainable Growth— Creating Sustainable Value
Work toward enhancing value in the three jewelry SPA, apparel OEM, andretail businesses
OutputInputsSustainable
GrowthShareholders
Customers

Jewelry SPA
Employees

Shareholders
Customers
Employees

Manufacturers

Manufacturers
Partnercompanies

Apparel OEM

RetailPartnercompanies

SocietySociety

Management and business platforms
The environment, society, and governance (ESG)34

Activities Aimed at Addressing ESG Issues
 Develop human resources by establishing a corporate university as a way inwhich to promote sound business management
 Implement measures that help promote an environment in which women can
excel through the Diversity Promotion Committee Upgrade and expand the quality assurance structure and systems

35

In conclusion

YONDOSHI HOLDINGS reported a decrease in revenues and an increase in earnings
for the 2H of fiscal 2016; the Company recorded record high at each major level of profit;
both revenues and earnings increased after excluding the impact of the sale of MISUZU Co., Ltd.

YONDOSHI HOLDINGS is projecting a decrease in revenues and an increase in earnings
for the fiscal year ending February 28, 2017; operating income and net income are expected
to reach a record high for the fifth consecutive period while ordinary income is anticipated toreach a record high for a sixth consecutive period

YONDOSHI HOLDINGS will continue to return profits to shareholders through the stable
and continuous payment of dividends as well as t flexible purchase of treasury stock;
the Company is projecting to increase dividends for a sixth consecutive period on the backof robust results; steps were taken to acquire 400,000 shares of treasury stock in AugustIn addition to addressing the major 2H issue of the peak Christmas season,
YONDOSHI HOLDINGS will implement a raft of product and sales promotion
measures; the Company will focus on implementing 4ºC BRIDAL initiatives, expand
the e-commerce business, and foster the MAISON JEWELL brandProgress under the 4th Medium-Term Management Plan remains extremely firm;
every effort is being made to secure business growth and to achieve the numerical vision
by steadfastly implementing measures36

We kindly request that you direct all inquiries regarding this document and investor relations
in general to the following point of contact:

YONDOSHI HOLDINGS INC.
Corporate Planning Division (Kozuka)
TEL+81-3-5719-3429
FAX+81-3-5719-3289
E-mail ir-yondoshi@yondoshi.co.jp

Disclaimer: Forecasts and forward-looking statements are based on a wide range of assumptions.
YONDOSHI HOLDINSG INC. takes no responsibility for the accuracy of the information contained inthis document and does not guarantee its validity or outcome. Readers are asked to use this information
with the understanding that actual results may differ materially from estimates and forecasts.