CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2018
(March 1, 2017 to August 31, 2017)
October 10, 2017
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 Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/Quarterly Securities Report filing date (planned): October 13, 2017
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes
Dividend payment commencement date (planned): November 10, 2017
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2017
(March 1, 2017 to August 31, 2017)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable toNet sales
Operating Income
Ordinary Income
owners of parent％

Millions of yen

Millions of yen％

Millions of yen％

Millions of yen％

FY2017 First Half

22,427(2.2)

2,408(10.9)

3,046(6.9)

2,164

4.0

FY2016 First Half

22,935(4.6)

2,704

22.7

3,273

37.4

2,081

50.6

Note: Comprehensive income FY2017 First Half: 2,346 million yen (14.3%)
FY2016 First Half: 2,052 million yen (29.1%)
Net Incomeper ShareNet Income perShare after Dilution
YenYenFY2017 First Half

84.86

84.74

FY2016 First Half

80.55

80.47

(2) Consolidated Financial Position
Net Assets to Total
AssetsNet Assets per Share%Yen

50,87579.4

1,987.63

62,42049,074February 28, 2017
(Reference)
Shareholders’ equity: August 31, 2017: 50,752 million yen
February 28, 2017: 48,959 million yen

78.4

1,920.55

Total Assets

Net Assets

Millions of yen

August 31, 2017

Millions of yen

63,928

2. Dividends
Dividends per Share(Record Date)
Fiscal 2016
Fiscal 2017
Fiscal 2018
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

——

25.00
32.50

—

25.00

50.00

—

32.50

65.00

Note: Revision to the most recently announced cash dividend forecast: No-1-3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2018
(March 1, 2017 to February 28, 2018)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable toNet Income
Operating Income
Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen

Fiscal year
endingFebruary 28,
2018

51,000%

2.4

Millions of yen%

6,850

4.9

Millions of yen

8,250%

5.8

Millions of yen

5,550%

Yen

11.8

217.55

Note: Revision to the most recently announced operating results forecast: NoNotes(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: No
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, 2017: 29,331,356 sharesFeb. 28, 2017: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2017: 3,797,001 sharesFeb. 28, 2017: 3,838,799 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidatedperiod)
FY2017 First Half: 25,511,393 shares
FY2016 First Half: 25,840,666 shares
The number of recorded treasury stock is inclusive of 115,200 of the Company’s shares held bythe YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust Account as ofthe end of the quarterly fiscal period.
This financial report for the second quarter of fiscal 2017 is not subject to the review procedures.
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 “1. QualitativeInformation on Business and Financial Results (3) Explanation of Consolidated Results Forecasts andOther Future Predictions” on page 5.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)Explanation of Business Results4(2)Explanation of Financial Condition

4(3)Explanation of Consolidated Results Forecasts and Other Future Predictions

5Consolidated Quarterly Financial Statements

6(1)Consolidated Quarterly Balance Sheets

6(2)Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of8Comprehensive Income
Consolidated Quarterly Statements of Income

Second Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income

Second Quarter Cumulative

89(3)Consolidated Quarterly Statements of Cash Flows10(4)Notes to Consolidated Quarterly Financial Statements

12(Notes Regarding Going Concern Assumptions)

12(Notes Regarding Substantial Changes in Shareholders’ Equity)

12(Additional Information)(Segment Information)

12-3-1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first half (March 1, 2017 to August 31, 2017) of fiscal 2017, the fiscal year ending February
28, 2018 (March 1, 2017 to February 28, 2018), the Japanese economy recovered at a moderate paceowing to improvement in corporate earnings and employment conditions, while overseas the outlook
remained unclear as a result of many matters of concern, including unstable political trends and risinggeopolitical risk.
In the retail industry, business conditions remained unstable amid persistent budget-consciousness
arising from uncertainty about the future, despite glimmers of improved personal consumption together
with inbound demand.
Under these circumstances, during the fiscal year ending February 2018, the final year of the fourth
medium-term management plan, the YONDOSHI HOLDINGS Group continued to cultivate humanresources, bolster product capabilities, and assess market trends, with the aim of becoming a century-old
company and brand. Further, we practiced CSR-based management to establish a highly trusted
corporate group, and worked to enhance enterprise value by strengthening internal controls, providing
shareholder returns, and making medium to long-term investments linked to earnings growth.
As a result, net sales for the subject first half period amounted to ¥22,427 million (down 2.2% YoY),
with operating income of ¥2,408 million (down 10.9% YoY), ordinary income of ¥3,046 million (down6.9% YoY), and profit attributable to owners of parent of ¥2,164 million (up 4.0% YoY).
Operating results by business segment were as follows.

Jewelry BusinessThe F.D.C. Products Group posted a revenue decline year on year as bridal jewelry sales fell short ofexpectations, even as the mainstay 4°C brand jewelry performed essentially as anticipated, buoyed bybrisk sales of the Aquanista COLLECTION, a limited edition launched to mark its 45th anniversary.
In pursuit of independence as a specialty shop, the 4°C BRIDAL brand is expanding the scope of its
promotional measures and moving forward with large-scale product development.
As a result, net sales in the Jewelry Business segment amounted to ¥13,957 million (down 4.0%YoY), with operating income of ¥2,193 million (down 9.8% YoY).
Apparel Business
The AS’TY Group was successful in its efforts to strengthen measures with major clients utilizing its
planning capabilities and production framework. Retailer age Co., Ltd. achieved positive returns fromexpanded openings of new locations for its mainstay everyday fashion brand PALETTE, and measures
to strengthen sales promotions.
As a result, net sales in the Apparel Business segment amounted to ¥8,469 million (up 0.9% YoY).
Operating income stood at ¥277 million (down 8.7% YoY). Despite increased sales and a decline inincome, operating income exceeded expectations.
(2) Explanation of Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of the second quarter (August 31, 2017) of the fiscal year ending February 28,
2018 stood at ¥63,928 million, an increase of ¥157 million compared with the end of the previous fiscalyear (February 28, 2017). This was due mainly to an increase of ¥688 million in investment securities,
and an increase of ¥842 million in merchandise and finished goods. Total liabilities amounted to¥13,053 million, a decrease of ¥293 million compared with the end of the previous fiscal year. This wasdue mainly to a decrease of ¥383 million in income taxes payable. Total net assets as of the end of theperiod under review came to ¥50,875 million, an increase of ¥180 million compared with the end of theprevious fiscal year.
Cash Flows
Cash and cash equivalents as of the end of the period under review stood at ¥5,504 million, an increaseof ¥216 million compared with the end of the previous fiscal year.

-4-(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥1,621 million compared with ¥738 million forthe corresponding period of the previous fiscal year. The major cash inflow came from income before
income taxes of ¥3,027 million. This was partially offset by the principal cash outflow arising fromincome taxes paid of ¥813 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥659 million compared with ¥1,404 million for thecorresponding period of the previous fiscal year. The primary cash outflow was for the purchase ofinvestment securities of ¥579 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥743 million, down from ¥1,519 million for thecorresponding period of the previous fiscal year. This largely reflected payment of dividends of ¥659million.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Predictions Earnings forecasts are unchanged from those announced on April 10, 2017.

-5-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, 2017

the Fiscal Year Ending(As of February 28, 2017)

February 28, 2018
(As of August 31, 2017)

ASSETS
Current assets:
Cash and deposits

2,088,219

2,004,307

Notes and accounts receivable ― trade

3,137,084

3,605,725

Short-term investment securities

3,200,000

3,500,000

Merchandise and finished goods

7,453,776

8,296,481

Work in process

844,796406,295

Raw materials and supplies

703,247

599,959

1,139,152

905,234

Other current assets
Allowance for doubtful accountsTotal current assets(2,357)(2,817)

18,563,921

19,315,186

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

5,682,408

6,125,889

Land

5,492,215

5,492,215

951,801

917,353

12,126,426

12,535,458

4,716,796

4,468,543

Other, net
Total property, plant and equipment
Intangible assets:
Goodwill
Other intangible assets

213,275

160,029

Total intangible assets

4,930,072

4,628,573

22,248,070

22,936,279

Investments and other assets:
Investment securities
Net defined benefit asset
Other

520,200

540,5404,140,338

4,080,217

Allowance for doubtful accounts(108,150)(108,094)

Total investments and other assets

26,800,458

27,448,942

Total noncurrent assets
Total assets-6-

43,856,957

44,612,974

62,420,878

63,928,161

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, 2017

the Fiscal Year Ending(As of February 28, 2017)

February 28, 2018
(As of August 31, 2017)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade3,955,932

Income taxes payable

1,141,834

758,224Provision for bonuses

351,451

292,074

Provision for directors' bonuses

65,05031,835

Asset retirement obligations

1,000

14,083Other

3,176,938

3,186,574

Total current liabilities

8,692,207

8,405,131

4,122,340

Noncurrent liabilities:
Long-term loans payable

378,940

324,660

Provision for directors' retirement benefits

378,418

394,943

Net defined benefit liability

573,336

575,421

Asset retirement obligations

993,306

999,6092,330,212

2,353,269

Other
Total noncurrent liabilities
Total liabilities

4,564,214

4,647,904

13,346,422

13,053,036

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,846,520

Capital surplus

18,145,727

18,151,477

Retained earnings

33,727,198

35,232,989

Treasury stock(6,510,635)(6,410,850)

Total shareholders’ equity

47,848,810

49,460,136

1,336,181

1,495,575

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

16,9591,651(161,985)(161,985)

Foreign currency translation adjustments

72,94067,302Remeasurements of defined benefit plans(153,265)(109,760)

Total other accumulated comprehensive income

1,110,829

1,292,783

Subscription rights to shares
Total net assets
Total liabilities and net assets-7-

114,815

122,205

49,074,456

50,875,124

62,420,878

63,928,161

(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, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toAugust 31, 2016)

August 31, 2017)

Net sales

22,935,702

Cost of Sales

9,613,164

22,427,504
9,443,888

Gross profit

13,322,537

12,983,615

Selling, general and administrative expenses

10,618,419

10,575,082

Operating income

2,704,118

2,408,533

Non-operating income
Interest income

9,008

10,646

Dividends received
Equity in earnings of affiliates

50,49250,451

483,960

517,540

Rent of real estate for investment

36,57036,570

―

7,468

Other

22,436

19,873

Total non-operating income

602,467

642,550

Foreign exchange gains

Non-operating expenses
Interest expenses

123

25

Depreciation of real estate for investment

2,348

2,342

Foreign exchange losses

22,544―

Management cost for real estate for investment

1,023

1,023

Commission for purchase of treasury shares
Other
Total non-operating expenses

833

―

6,376

982

33,4294,374

3,273,336

3,046,710

Impairment loss

38,686

17,629Loss on sales of shares of subsidiaries and associates

493,781

―

―

1,143

Ordinary income
Extraordinary loss

Loss on closing of stores
Loss on valuation of investment securities

73,467―

Total extraordinary losses

605,935

18,772

Net income before income taxes

2,667,400

3,027,937

Income taxes ― current

898,944687,690

Income taxes ― deferred(312,871)

175,393

Total income taxes

586,072

863,084

Net income

2,081,327

2,164,853

Profit attributable to owners of parent

2,081,327

2,164,853-8-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, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toAugust 31, 2016)

August 31, 2017)

2,081,327

2,164,853

Other comprehensive income
Other valuation difference on available-for-sale securities(46,378)

69,652

Deferred gains or losses on hedges
Foreign currency translation adjustments

14,539(15,307)(44,182)(5,638)

Revaluation reserve for land

32,00924,031Remeasurements of defined benefit plans, net of tax(10,415)―

25,464109,215(28,963)
2,052,364

181,954
2,346,807

2,052,364

2,346,807――

Share of other comprehensive income of entities 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-9-(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, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toAugust 31, 2016)

August 31, 2017)

Cash flows from operating activities:
Income before income taxes

2,667,400

3,027,937Depreciation

539,932

548,930

Impairment loss

38,686

17,629Amortization of goodwill

248,252

248,252

Increase (decrease) in allowance for doubtful accounts(15,240)

404

Increase (decrease) in provision for bonuses(227,728)(59,377)

Increase (decrease) in net defined benefit liability

48,586

29,577

Increase (decrease) in other provision(66,462)(16,690)

Interest and dividends income(59,501)(61,098)

Interest expenses

123

25

Equity in (earnings) losses of affiliates(483,960)(517,540)

Foreign exchange losses (gains)(26,444)5,081

493,781―

73,467―(99,603)(467,697)(1,178,045)(302,580)

628,091

167,387(276,712)(126,131)(139,522)(127,525)

Loss (gain) on sales of shares of subsidiaries andassociates
Loss (gain) on valuation of investment securities
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
Increase (decrease) in advances received
Increase (decrease) in accounts payable - other
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities- 10 -

16,403

14,506(108,911)(109,881)

75,71342,703

2,148,305

2,313,914

119,331

120,928

(123)

(25)

(1,528,803)(813,683)

738,708

1,621,133

(Thousands of yen)First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toAugust 31, 2016)

August 31, 2017)

Cash flows from investing activities:
Purchase of noncurrent assets(592,106)(579,450)

Proceeds from sales of noncurrent assets

81,134

1,451

Purchase of intangible assets(2,474)(6,282)

Proceeds from redemption of securities
Purchase of investment securities

300,000―(2,009,746)(9,556)

Proceeds from redemption of investment securities

500,000―

Payments of long-term loans receivable(5,200)(700)Collection of long-term loans receivable

31,9892,052

Purchase of long-term prepaid expenses(57,212)(17,929)

402,580―

Other payments(88,586)(78,331)

Other proceeds

35,25329,584(1,404,367)(659,161)

Repayment of long-term loans payable(50,930)(54,280)

Purchase of treasury stock(866,205)(170)

62,77896,362

Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation

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

Proceeds from sales of treasury stock
Cash dividends paid

(535,101)(659,062)

Other, net(130,404)(126,720)(1,519,863)(743,871)

Net cash provided by (used in) financing activities(17,713)(2,012)

Net increase (decrease) in cash and cash equivalents(2,203,235)

216,088

Cash and cash equivalents at beginning of period

4,985,844

5,288,219

Cash and cash equivalents at end of period

2,782,608

5,504,307

Effect of exchange rate changes on cash and cash equivalents- 11 -

(4) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Additional Information)(Application of Revised Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company has applied “Revised Implementation Guidance on Recoverability of Deferred TaxAssets” (Accounting Standards Board of Japan (ASBJ) Guidance No. 26, March 28, 2016), from thefirst quarter period of the subject fiscal year.
Ⅰ(Segment Information)
The first half of the fiscal year ended February 28, 2017 (March 1, 2016 to August 31, 2016)
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

14,541,726

8,393,975

22,935,702―

22,935,702

15,673

460,853

476,526(476,526)―

14,557,400

8,854,828

23,412,229(476,526)

22,935,702

2,432,416

304,406

2,736,823(32,705)

2,704,118

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

Notes:
1. The adjustment amount of minus ¥32,705 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 incomestatements.

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.
ⅡThe first half of the fiscal year ending February 28, 2018 (March 1, 2017 to August 31, 2017)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting SegmentsTotal

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

13,957,627

8,469,877

22,427,504―

22,427,504

437

461,058

461,496(461,496)

―

Total

13,958,065

8,930,935

22,889,001(461,496)

22,427,504

Segment income

2,193,387

277,995

2,471,382(62,849)

2,408,533

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥62,849 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.

- 12 -

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

- 13 -