CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2017
(March 1, 2016 to May 31, 2016)
July 4, 2016
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): July 15, 2016
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 2016
(March 1, 2016 to May 31, 2016)(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

Millions of yen％

Millions of yen％

Millions of yen％

1Q FY2016

11,588

(5.8)

1,547

14.8

1,860

10.5

1,217

0.4

1Q FY2015

12,306

(2.9)

1,348

(13.6)

1,683

(9.0)

1,212

2.9

Note: Comprehensive income 1Q FY2016: 1,424 million yen (-12.3%) 1Q FY2015: 1,624 million yen (34.8%)
Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

1Q FY2016

47.10

47.03

1Q FY2015

45.56

45.47

(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share%Yen

46,16476.6

1,782.34

60,57645,237
February 29, 2016
(Reference)
Shareholders’ equity: May 31, 2016: 46,083 million yen
February 29, 2016: 45,168 million yen

74.6

1,747.62

Millions of yen

May 31, 2016

Millions of yen

60,155

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2015
Fiscal 2016
Fiscal 2017
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

20.00

—

20.00

40.00

25.00

—

25.00

50.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 28, 2017: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2017
(March 1, 2016 to February 28, 2017)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable to
Net Income
Operating Income
Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen

Interim period
Fiscal year
endingFebruary 28,
2017%Millions of yen%

Millions of yen%

Millions of yen%

Yen

23,300

(3.1)

2,450

11.2

3,000

26.0

2,000

44.7

77.36

51,500

(2.6)

6,550

7.1

7,700

12.3

4,950

15.7

191.48

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 28,
2017: No

Notes
(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): Yes
New: —
Excluded: 1 (Company name: MISUZU Co., Ltd.)(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
Note: For more detailed information, please see the section “2. Matters Concerning Summary
Information (Notes) (3) Changes in accounting policies, changes in accounting estimates,
and restatements” on page 5.
(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
May 31, 2016: 29,331,356 sharesFeb. 29, 2016: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2016: 3,475,790 sharesFeb. 29, 2016: 3,485,424 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)First quarter fiscal 2016: 28,851,767 shares First quarter fiscal 2015: 26,605,585 shares
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the first quarter of fiscal 2016 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 “1. Qualitative
Information on Business and Financial Results (3) Explanation of Consolidated Results Forecasts andOther Future Predictions” on page 4.

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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

Matters Concerning Summary Information (Notes)

5(1)Changes in Important Subsidiaries during the Subject 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

5

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income

First Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income(3)First Quarter Cumulative

8
9

Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)10(Notes Regarding Substantial Changes in Shareholders’ Equity)

10(Segment Information)

10

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1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first quarter period of the fiscal year ending February 2017 (March 1, 2016 to May 31, 2016),
the economic outlook became increasingly unclear, with rapid appreciation of the yen, concerns overeconomic slowdown in China and other overseas economies, and prolonged sluggishness in consumer
spending.
In the retail industry, business conditions remained harsh, with consumption declining amid
persistent budget-consciousness and a slowdown in inbound demand.
Under these circumstances, during the fiscal year ending February 2017, the second year of the
fourth medium-term management plan, the YONDOSHI HOLDINGS Group continued to cultivate
human resources, 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 quarter period amounted to ¥11,588 million (down 5.8%
YoY), with operating income of ¥1,547 million (up 14.8% YoY), ordinary income of ¥1,860 million (up10.5% YoY), and profit attributable to owners of parent of ¥1,217 million (up 0.4% YoY).
Of note, ordinary income and profit attributable to owners of parent reached record highs for a firstquarter period.
Operating results by business segment were as follows.

Jewelry BusinessAt the F.D.C. Products Group, sales at mainstay 4°C brand jewelry stores rose steadily, mainly as aresult of expansion in the range of items and zones following renovation of existing locations. We
continued with measures for proactive opening of new store locations, centered on canal 4°C and Luria
4°C stores, and opened integrated and adjacent shops to utilize brand mix synergies. Results were
further boosted by the ecommerce business, which continues to record double-digit growth year on year.
As a result, net sales in the Jewelry Business segment amounted to ¥7,305 million (up 7.0% YoY),
with operating income of ¥1,382 million (up 7.8% YoY). Segment sales and operating income bothreached record highs.
Apparel Business
The AS’TY Group posted positive results on successful efforts to strengthen measures with majorclients utilizing its planning capabilities and production framework. age Co., Ltd. achieved positive
returns from openings of new locations for its mainstay everyday fashion brand PALETTE, andmeasures to improve earnings by strengthening the product lineup. MISUZU Co., Ltd. was removed
from the scope of consolidation from the subject first quarter period, following a stock transfer on April
28, 2016.
As a result, net sales in the Apparel Business segment amounted to ¥4,283 million (down 21.8%
YoY), with operating income of ¥178 million (up 123.0% YoY).
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2016) amounted to ¥60,155 million, adecrease of ¥420 million from the end of the previous fiscal year (February 28, 2016). This was due
mainly to a decrease of ¥1,429 million in cash and deposits; against an increase of ¥909 million in
short-term investment securities. Total liabilities amounted to ¥13,991 million, a decrease of ¥1,347
million from the end of the previous fiscal year. This was due mainly to a decrease of ¥1,108 million inincome taxes payable. Total net assets at the end of the subject period amounted to ¥46,164 million, an
increase of ¥926 million from the end of the previous fiscal year.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 11, 2016.

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2. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Subject Period
MISUZU Co., Ltd., which was a consolidated subsidiary at the end of the previous fiscal year, wasremoved from the scope of consolidation from the first quarter period of the subject fiscal year,
following the sale of all shares held by the Company on April 28, 2016.
(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 Accounting Standard for Business Combinations, etc.)
The Company has applied “Revised Accounting Standard for Business Combinations” (AccountingStandards Board of Japan (ASBJ) Statement No. 21, September 13, 2013), “Revised AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013) and“Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013),
from the subject first quarter period, changing its presentation of net income, and changing thepresentation of “minority interests” to “non-controlling interests.” The consolidated financial statements
for the previous fiscal year have been recombined to reflect these changes in presentation.
(Change in Depreciation Method for Property, Plant, and Equipment)
The Company and its consolidated subsidiaries, in accordance with revisions to corporate tax law, forbuildings and accompanying facilities and structures acquired from April 1, 2016, from the subject firstquarter period have changed the depreciation method from the declining balance method to the straightline method.
The effect of these changes on the Company’s consolidated profit and loss in the subject first quarter
period is negligible.
(4) Additional Information(Transactions to Provide Company Stock to Employees through a Trust)
The Company has introduced an employee stock ownership plan trust (“ESOP trust”) as an incentive toemployees to increase medium- to long-term corporate value, conducting transactions to provide
Company stock to employees’ shareholding association through a trust.
i. Transaction summary
The Company established a trust with the beneficiaries as employees who participate in the
YONDOSHI HOLDINGS Employees’ Shareholding Association (“the Shareholding Association”) andsatisfy certain requirements. The trust acquires Company stock in an amount expected to be procuredby the Shareholding Association over a five-year period, and sells the shares to the Shareholding
Association on a fixed date each month. When the trust is concluded, if the trust has earned a profit
from a rise in the share price, the funds are distributed to the employee beneficiaries in proportion totheir contribution. If a loss is incurred due to a decline in the share price, and debt pertaining to the trust
property remains, in accordance with the guarantee article in the loan agreement the Company willdischarge the entire debt to the bank, with no additional burden placed on employees.
ii. Matters concerning the Company’s stock held in the trust
Company stock remaining in the trust is recorded as treasury shares under net assets at book value tothe trust (excluding ancillary expenses). At the end of the subject first quarter period, the book value ofthe subject treasury shares was ¥456,514 thousand, for 165,600 shares.
iii. Book value of debt recorded through application of the gross method¥478,810 thousand at the end of the subject first quarter period-5-3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the First Quarter ofFebruary 29, 2016

the Fiscal Year Ending(As of February 29, 2016)

February 28, 2017
(As of May 31, 2016)

ASSETS
Current assets:
Cash and deposits

2,145,844

716,828

Notes and accounts receivable ― trade

3,671,116

3,804,894

Short-term investment securities

3,140,000

2,600,000

Merchandise and finished goods

7,612,167

8,309,852

Work in process

746,972

692,545

Raw materials and supplies

702,663727,784

Other current assets

895,776

1,655,979

Allowance for doubtful accounts(11,940)(1,756)

18,902,600

18,506,129

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

6,028,177

5,905,355

Land

5,528,465

5,4,92,215

Other, net

1,102,278

1,072,057

Total property, plant and equipment

12,658,921

12,469,628

5,213,301

5,089,174

Intangible assets:
Goodwill
Other intangible assets

374,273

310,048

Total intangible assets

5,587,575

5,399,223

18,490,635

19,400,583

Investments and other assets:
Investment securities
Net defined benefit asset
Other391,765401,271

4,659,029

4,090,726

Allowance for doubtful accounts(114,219)(112,218)

Total investments and other assets

23,427,211

23,780,362

Total noncurrent assets
Total assets-6-

41,673,708

41,649,214

60,576,308

60,155,343

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

End of the First Quarter ofFebruary 29, 2016

the Fiscal Year Ending(As of February 29, 2016)

February 28, 2017
(As of May 31, 2016)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

4,289,341

Income taxes payable

1,545,501

437,107

Provision for bonuses

528,148358,255

Provision for directors' bonuses

56,60015,703

Asset retirement obligations

13,391

11,821Other

3,897,039

3,491,874

Total current liabilities

10,330,022

9,377,317

5,062,554

Noncurrent liabilities:
Long-term loans payable

478,810478,810

Provision for directors' retirement benefits

433,131

335,077

Net defined benefit liability

669,081

520,582

Asset retirement obligations

1,040,972

945,644

Other

2,386,467

2,333,706

Total noncurrent liabilities
Total liabilities

5,008,462

4,613,820

15,338,485

13,991,137

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,146,513

18,146,512

Retained earnings

29,958,714

30,641,312

Treasury stock(5,768,298)(5,742,627)

Total shareholders’ equity

44,823,450

45,531,718

Valuation difference on available-for-sale securities

810,524

1,010,906

Deferred gains or losses on hedges(34,981)(9,088)

Revaluation reserve for land(158,063)(168,478)

Other accumulated comprehensive income:

Foreign currency translation adjustments

81,16762,358Remeasurements of defined benefit plans(353,371)(344,008)

Total other accumulated comprehensive income

345,275

551,688

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

69,09780,79945,237,823

46,164,206

60,576,308

60,155,343

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

Fiscal Year Ended

Fiscal Year Ending

February 29, 2016

February 28, 2017

(March 1, 2015 to(March 1, 2016 to

May 31, 2015)

May 31, 2016)

Net sales

12,306,453

11,588,520

Cost of Sales

5,222,598

4,757,212

Gross profit

7,083,855

6,831,308

Selling, general and administrative expenses

5,735,469

5,283,586

Operating income

1,348,385

1,547,721

Non-operating income
Interest income

4,809

4,667

Dividends received
Equity in earnings of affiliates

5,501

5,994

281,505

284,430

Rent of real estate for investment

25,48518,285

Foreign exchange gains

5,289

―

Other

18,18911,869Total non-operating income

340,780

325,247

Non-operating expenses
Interest expenses

145

76

1,470

1,174

Foreign exchange losses

―

9,142

Management cost for real estate for investment

511

511

3,240

1,616

Depreciation of real estate for investment

Other
Total non-operating expenses
Ordinary income

5,368

12,521

1,683,798

1,860,447

Extraordinary loss
Impairment loss

13,2199,425―

493,781

Total extraordinary losses

13,219503,206

Net income before income taxes

1,670,579

1,357,240

Loss on sales of shares of subsidiaries and associates

Income taxes ― current

382,608

435,520

Income taxes ― deferred

75,707(295,978)Total income taxes
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent-8-458,315

139,541

1,212,263

1,217,699――

1,212,263

1,217,699

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

Income before minority interests

First Quarter of theFirst Quarter of the

Fiscal Year Ended

Fiscal Year Ending

February 29, 2016

February 28, 2017

(March 1, 2015 to(March 1, 2016 to

May 31, 2015)

May 31, 2016)

1,212,263

1,217,699

375,521105,221

Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments(137)

24,437828(18,809)

Revaluation reserve for land―

(10,415)

Remeasurements of defined benefit plans, net of tax

936

16,00435,06089,973412,2091,624,473

206,413
1,424,112

1,624,473

1,424,112――

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) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 29, 2016 (March 1, 2015 to May 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

6,827,320

5,479,133

12,306,453―

12,306,453

11,978222,322234,300(234,300)

―

Total

6,839,298

5,701,455

12,540,754(234,300)

12,306,453

Segment income

1,282,901

79,953

1,362,835(14,468)

1,348,385

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥14,468 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 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.

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Ⅱ

The first quarter of the fiscal year ending February 28, 2017 (March 1, 2016 to May 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

7,305,131

4,283,389

11,588,520―

11,588,520

6,854

240,745

247,600(247,600)

―

Total

7,311,985

4,524,135

11,836,121(247,600)

11,588,520

Segment income

1,382,535

178,282

1,560,817(13,096)

1,547,721

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥13,096 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 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.

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