CONSOLIDATED FINANCIAL REPORTFISCAL 2019（Japanese GAAP）(March 1, 2019 to February 29, 2020)
April 13, 2020
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code number 8008.
Representative:
Inquiries:

Saishi Kimura, Chairman and Representative Director, CEO
Masahiko Nishimura, Director and Executive Officer responsible for finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Annual General Meeting of Shareholders date (planned): May 28, 2020
Fiscal 2019 Securities Report filing date (planned): May 29, 2020
Dividend payment commencement date (planned): May 29, 2020
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: No(Millions of yen rounded down)

1. Consolidated Performance for FY 2019 (March 1, 2019 to February 29, 2020)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Net Sales

Operating Income%

Millions of yen%

Millions of yen

Profit Atributable to
Owners of Parent

Ordinary Income%

Millions of yen%

Millions of yen

FY 2019

44,970

(4.6)

3,975

(20.2)

4,312(36.6)

2,475

1.4

FY 2018

47,118

(2.0)

4,984

(18.3)

6,804(10.0)

2,440(53.9)(Note) Comprehensive income: FY 2019: ¥1,170 million (-79.7%)
Net Income Per
Share

FY 2018: ¥5,755 million (2.4%)

Net Income Per
Share (Diluted)

Yen

Ordinary Income
to Total Assets

ROE

Yen

%

%

Ordinary Income
to Operating
Revenues%

FY 2019112.18112.176.0
7.6
8.8
FY 2018
96.03
96.01
5.0
10.8
10.6
(Reference) Equity in earnings of affiliated companies accounted for by the equity method:
FY 2019: — million FY 2018: ¥677 million
Operating income before the amortization of goodwill: FY 2019: ¥4,472 million FY 2018: ¥5,481 million
YONDOSHI HOLDINGS has positioned operating income before the amortization of goodwill as an importantmanagement indicator.

(2) Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Net Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 29, 2020

53,73739,58873.5

1,822.10

As of February 28, 201960,284

43,58772.2

1,883.28(Reference) Shareholders’ equity: As of February 29, 2020: ¥39,514 million

As of February 28, 2019: ¥43,497 million

Note: YONDOSHI HOLDINGS has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” Statement No.
28 issued by the Accounting Standards Board of Japan (ASBJ) on February 16, 2018 effective from the start of the first quarter of the fiscal
year under review. Data relating to the Company’s financial position as of the previous fiscal year is presented after retroactively adjusting
figures in accordance with the above.

― 1 ―(3) Consolidated Cash Flows
Operating Activities
Millions of yen

2.

Investing Activities

Financing Activities

Millions of yen

Millions of yen

FY 20192,433

72(5,468)785

FY 2018

1,664

5,407

(9,344)

3,749

Dividends
Cash Dividends per Share of Common Stock
End of 1Q End of 2Q End of 3Q
Yen

Yen

Yen

End of 4Q

Annual

Yen

Yen

Cash
Dividends
Paid (Annual)

Dividend
Payout Ratio(Consolidated)

Millions of yen

FY 2018
—
37.50
—
37.50
75.00
FY 2019
—
40.00
—
40.00
80.00
FY 2020 (planned)
—
—
—
—
—
Note: Dividends for the fiscal 2020, ending February 28, 2021 are currently undecided.

3.

Cash and Cash
Equivalents at the Endof the Period
Millions of yen

1,862
1,747

Cash Dividends
to Net Assets(Consolidated)

%

%

78.1
71.3
—

3.8
4.3

Forecast of Consolidated Results for FY 2020 (March 1, 2020 to February 28, 2021)

Due to many uncertain factors, including when the new coronavirus pandemic will ease and the difficulty projecting a recovery inconsumer sentiment, it is difficult to determine a logical forecast at this stage for the consolidated earnings for the fiscal year ending
February 28, 2021. A prompt announcement will be made as soon as it becomes possible to prepare a forecast.
Please refer to “1. Overview of Business Results (4) Outlook” on page 6 for details.

4.

Other
(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): No(2) 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(3) Number of shares issued and outstanding (common shares)
1. Number of shares issued and outstanding as of the end of the period (including treasury stock)
As of February 29, 2020: 24,331,356 shares
As of February 28, 2019: 29,331,356 shares
2. Number of treasury stock
As of February 29, 2020: 2,645,286 shares
As of February 28, 2019: 6,234,634 shares
3. Average number of shares for the year
FY2019: 22,071,819 shares
FY2018: 25,415,080 shares
Notes:
1. The number of recorded treasury stock includes 26,000 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust (hereinafter referred to the “the Trust”) and 45,353
of the Company’ shares held by the Shares Grant Trust for Officers as of the end of the fiscal year.
2. For additional information on the basic number of shares used to calculate consolidated net income per share, pleaserefer to “Per Share Information” on page 21.

― 2 ―(Reference) Overview of Non-Consolidated Performance

1. Non-Consolidated Performance for FY 2020 (March 1, 2020 to February 28, 2021)(1) Non-Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen

Ordinary Income%

Millions of yen%

Millions of yen

Profit attributable toowners of parent%

Millions of yen

FY 20207,673(49.0)

7,170(50.6)

7,189(50.5)

7,166(50.2)FY 2019

15,044497.6

14,522602.1

14,517601.2

14,401662.2

FY 2020
FY 2019

Net Income Per
Share
Yen

Net Income Per
Share (Diluted)
Yen

324.67553.42324.65553.30(2) Non-Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Net Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 29, 2020

37,002

26,68671.9

1,227.15

As of February 28, 2019

41,974

24,63058.5

1,062.49(Reference) Shareholders’ equity: As of February 29, 2020: ¥26,612 million

As of February 28, 2019: ¥24,540 million* The financial statement summary is not subject to auditing by certified public accountants or audit firms.
* Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
1. The forecasts of operating results and other items concerning the future contained in this document are basedon 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 wellas cautionary notes on the use of operating results forecasts, please refer to the information from page 6.
2. The Company had previously presented its consolidated quarterly financial statements in units of thousandsof yen, but from the subject consolidated fiscal year, the Company has changed the unit to millions of yen.
Meanwhile, figures from the previous consolidated fiscal year are also presented in millions of yen to
facilitate a comparison.
(Method for Obtaining Financial Results Presentation Materials)
YONDOSHI HOLDINGS had planned to hold a briefing session for institutional investors and analysts on
April 13, 2020 (Monday). Placing the utmost priority on the health and safety of participants, and in light of
the growing threat imposed by the new coronavirus (COVID-19) pandemic, the Company has decided to cancel
this briefing session in this instance.
In lieu of the above, YONDOSHI HOLDINGS will post a copy of the presentation materials that it had planned
to use on the day of the briefing session on its website (https://yondoshi.co.jp/ ).

― 3 ―Contents
1.

Overview of Business Results

5(1)Overview of Business Results for the Fiscal Year Ended February 29, 2020

5

(2)

Overview of Financial Condition as of February 29, 2020

5

(3)

Overview of Cash Flows for the Fiscal Year Ended February 29, 2020

6

(4)

Outlook6(5)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2019 and Fiscal 2020

7

2.

Basic Stance on Selection of Accounting Standards

7

4.

Consolidated Financial Statements and Major Notes

8(1)

Consolidated Balance Sheets

8(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

10

Consolidated Statements of Income

10

Consolidated Statements of Comprehensive Income

11

(3)

Consolidated Statements of Changes in Net Assets

12

(4)

Consolidated Statements of Cash Flows

14

(5)

Notes to Consolidated Financial Statements

16(Notes Regarding Going Concern Assumptions)16(Change in Presentation Method)

16(Additional Information)

16(Segment Information)

17(Per Share Information)

21

4.

Other

22

(1)

22

Changes in Management― 4 ―1. Overview of Business Results(1) Overview of Business Results for the Fiscal Year Ended February 29, 2020
In fiscal 2019, the fiscal year ended February 29, 2020, the outlook for the Japanese economy remained clouded
due to concerns regarding overseas economic trends and such factors as the impact of changes in financial andcapital markets.
Amid continued budget-consciousness arising from uncertainty surrounding the future and other concerns
including the effects of the consumption tax rate hike, business conditions remained difficult in the retail industry.
This was largely due to the downturn in consumer sentiment as a result of such factors as the impact of natural
disasters and the drop in inbound demand attributable to the new coronavirus pandemic.
Under these circumstances, during fiscal 2019, the second year of the fifth medium-term management plan,
the YONDOSHI HOLDINGS Group continued to cultivate human resources, bolster product capabilities, andassess market trends, with the aim of becoming a century-old company and brand. Further, the Company
implemented CSR-based management to establish a highly trusted corporate group, and worked to enhanceenterprise value by strengthening internal controls, providing shareholder returns, and making medium to longterm investments linked to earnings growth.
Accounting for each of these factors, net sales for the fiscal year under review amounted to ¥44,970 million(down 4.6% YoY). From a profit perspective, operating income came to ¥3,975 million (down 20.2% YoY),
ordinary income was ¥4,312 million (down 36.6% YoY), and profit attributable to owners of parent increasedto ¥2,475 million (up 1.4% YoY). Positioned as an important management indicator, operating income before
the amortization of goodwill amounted to ¥4,472 million (down 18.4% YoY).
Operating results by business segment were as follows.
Jewelry BusinessIn the F.D.C. Products Group, which is largely responsible for the YONDOSHI HOLDINGS Group’s Jewelry
Business, results were firm during the first half of the fiscal year under review. In contrast, overall net sales inthis segment fell below plans. This largely reflected the downturn in consumer sentiment from October 2019
following the hike in Japan’s consumption tax rate and the impact of December 23 falling on a weekday and twoless Saturdays, Sundays, and holidays for the month compared with the corresponding period of the previous
year, which dampened the euphoria normally associated with the peak period of Christmas demand. Turning toselling, general and administrative expenses, the F.D.C. Products Group also undertook an unplanned investment
in its IT system while incurring a temporary increase in asset retirement obligation amortization costs.
Based on the aforementioned, net sales in the Jewelry Business segment for the fiscal year under review
amounted to ¥26,987 million (down 7.9% YoY), and operating income came to ¥3,319 million (down 25.6%
YoY).
Apparel Business
The AS’TY Group substantially improved its earning capacity by strengthening measures with major clients,and enhancing its production management capabilities. Results at retailer age Co., Ltd. were robust. In addition
to expanding openings of new locations for its everyday fashion brand PALETTE, these robust results weremainly due to successful efforts to improve the gross margin by scaling back inventory of seasonal goods.
As a result, the YONDOSHI HOLDINGS Group reported increases in both revenue and earnings for the
fiscal year under review. In specific terms, net sales in the Apparel Business segment amounted to ¥17,983
million (up 0.9% YoY), with operating income of ¥758 million (up 25.5% YoY).
(2) Overview of Financial Condition as of February 29, 2020
(Current Assets)
Current assets as of the end of the fiscal year under review stood at ¥16,976 million, down ¥2,919 million
compared with the end of the previous fiscal year. Major movements during the fiscal year ended February 29,2020 included decreases of ¥1,463 million in cash and deposits and ¥1,500 million in short-term investment
securities.
(Noncurrent Assets)
Noncurrent assets came to ¥36,760 million as of February 29, 2020, a decrease of ¥3,628 million comparedwith the previous fiscal year-end. This decrease was primarily due to the drop in investment securities of ¥2,823
million.

― 5 ―(Current Liabilities)
Current liabilities stood at ¥7,851 million as of the end of the fiscal year under review, down ¥2,161 million
compared with the end of the previous fiscal year. This decrease was mainly due to the drop in income taxes
payable of ¥3,028 million.
(Noncurrent Liabilities)
Noncurrent liabilities were ¥6,297 million as of February 29, 2020, a decrease of ¥386 million comparedwith the balance as of February 28, 2019. This decrease was essentially due to the downturn in deferred tax
liabilities of ¥411 million.
(Net Assets)
Total net assets as of the end of the fiscal year under review came to ¥39,588 million, down ¥3,999 million
compared with the end of the previous fiscal year. While the Company recorded a decrease of ¥7,428 million
attributable to such factors as the buy-back of share and retirement of treasury stock (increase in net assets),
capital surplus and the valuation difference on available-for-sale securities decreased ¥10,833 million and ¥1,251
million, respectively, due to a variety of factors including the retirement of treasury stock.
(3) Overview of Cash Flows for the Fiscal Year Ended February 29, 2020
Cash and cash equivalents as of the end of the fiscal year under review stood at ¥785 million, a decrease of¥2,963million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥2,433 million, up ¥769 million compared with theprevious fiscal year. In the fiscal year under review, the major cash inflows were income before income taxes of¥3,860 million and income taxes refund of ¥2,862. The principal cash outflow was income taxes paid of ¥6,916
million.
(Cash Flows from Investing Activities)
Net cash provided by investing activities totaled ¥72 million, down ¥5,334 million year on year. The major
cash inflows included proceeds from redemption of investment securities of ¥700 million. The main cash outflow
was for the purchase of property, plant and equipment of ¥714 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥5,468 million, up ¥3,876 million compared with the previous
fiscal year. This largely reflected outflows for the purchase of treasury stock of ¥3,606 million and cash
dividends paid of¥1,747 million.
(4) Outlook
Operating conditions throughout the retail sector are expected to be extremely difficult. Amid the ongoing
forecast frugality stemming from consumers’ anxieties regarding the future this anticipated difficulty is largely
due to risk that economic activity will stall as a result of the new coronavirus pandemic.
Under these circumstances, and guided by its Fifth Medium-Term Management Plan, which covers thethree-year period to fiscal 2020, the fiscal year ending February 28, 2021, the YONDOSHI HOLDINGS Groupremains committed to restructuring its business in a bid to quickly build a robust management and businessplatform and to become a century-old company and brand. As far as its Jewelry Business is concerned, the Group
has taken steps to withdraw from the Chinese market and to discontinue the two MASION JEWELL and Luria
4°C brands. Turning to the Group’s Apparel Business, YONDOSHI HOLDINGS will halt operations at its own
facility run by Group company AS’TY VIETNAM INC. As indicated by the above, the YONDOSHIHOLDINGS Group will enhance its ability to carry out its growth strategy going forward by adopting a policyof selection and focus.
In addition to actively nurturing human resources, strengthening the competitiveness of products, andascertaining market trends, every effort will also be made to practice CSR-based management in a bid to establish
YONDOSHI HOLDINGS as a highly reliable and trustworthy group. Moreover, we will endeavor to enhance
corporate value by strengthening internal control functions, providing adequate shareholder returns, and making
medium- to long-term investments linked to earnings growth.
Due to many uncertain factors, including when the new coronavirus pandemic will ease and the difficulty
projecting a recovery in consumer sentiment, it is difficult to determine a logical forecast at this stage for the― 6 ―consolidated earnings for the fiscal year ending February 28, 2021. A prompt announcement will be made assoon as it becomes possible to prepare a forecast.
(5) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2019 and Fiscal 2020
The YONDOSHI HOLDINGS Group places the appropriation of profits to shareholders as a key management
priority. As a result, the Group maintains the basic policy of delivering stable and sustainable cash dividends.
At the same time, the Group adopts a flexible policy toward the purchase of treasury stock as a part ofcomprehensive efforts to increase the level of returns to shareholders. Working toward the goal of achieving anannual cash dividend of ¥100 per common share in the future, the YONDOSHI HOLDINGS Group placesconsiderable emphasis on increasing its dividend on a consecutive basis.
Based on this policy, YONDOSHI HOLDINGS plans to pay a fiscal year-end cash dividend of ¥40 per
common share. Together with the interim cash dividend paid of ¥40 per common share, the full fiscal year cash
dividend for fiscal 2019 will therefore come in at ¥80 per common share. On this basis, the Company isprojecting that its dividend payout ratio will reach 71.3% and achieve a ninth consecutive increase in the annual
dividend. Meanwhile, YONDOSHI HOLDINGS undertook the large-scale purchase of 1,480,000 of its own
shares during the fiscal year under review while at the same time retiring 5,000,000 share of treasury stock.
Due to many uncertain factors, including when the new coronavirus pandemic will ease and the difficulty
projecting a recovery in consumer sentiment, the interim and year-end cash dividends for the fiscal 2020, ending
February 28, 2021 are currently undecided, but despite this, YONDOSHI HOLDINGS plans to continue its
dividend policy.
2. Basic Stance on Selection of Accounting Standards
The YONDOSHI HOLDINGS Group prepares its consolidated financial statements in accordance with Japanese
Generally Accepted Accounting Principles. With respect to International Financial Reporting Standards (IFRS),
the YONDOSHI HOLDINGS Group will respond adequately with consideration of the situation in Japan andoverseas.

― 7 ―3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 28, 2019
(As of February 28, 2019)

End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

2,249
2,854
1,500
8,508
702
918
15
2,940
210
(3)

785
2,975
－
8,356
469
1,262
49
2,763
315
(2)

19,895

16,976

5,475
5,492
42
617

5,307
5,492
44
653

11,627

11,498

3,723
155
1
42

3,227
119
1
93

3,923

3,441

19,331
253
11
1,631
71
444
590
1,984
72

16,507
244
3
1,735
71
440
582
1,811
23

545
(98)

452
(51)

24,83821,820ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Lease assets, net
Other, net
Total property, plant and equipment
Intangible assets:
Goodwill
Lease assets
Right of trademark
Other
Total intangible assets
Investments and other assets:
Investment securities
Guarantee deposits
Long-term loans receivable
Deferred tax assets
Deferred tax assets for land revaluation
Real estate for investment, net
Net defined benefit asset
Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and other
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets― 8 ―40,38936,76060,28453,737

(Millions of yen)
End of the Fiscal Year Ended
February 28, 2019
(As of February 28, 2019)

End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

3,582
－
86
3,462
214
8
20
2,638

3,902
82
70
434
227
24
70
3,039

10,013

7,851

175
149
327
3,944
507
43
1,040
495

－
112
321
3,532
500
79
1,358
392

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Long-term loans payable
Lease obligations
Long-term guarantee deposited
Deferred tax liabilities
Net defined benefit liability
Provision for directors' stock benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

6,683

6,297

16,69614,1492,486
18,057
31,380(13,180)

2,486
7,223
32,108(5,751)

38,74336,066

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

4,845
(1)
(161)
69
1

3,594
2
(161)
56
(43)

Total accumulated other comprehensive income

4,753

3,447

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

― 9 ―

90

74

43,58739,58860,28453,737

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal 2018
(March 1, 2018 to

Fiscal 2019
(March 1, 2019 toFebruary 28, 2019)

February 29, 2020)

Net sales
Cost of Sales

47,11819,962

44,97019,190Gross profit

27,15525,780

Selling, general and administrative expenses

22,17121,804

Operating income

4,984

3,975

43
93
677
73
12
898
55

44
176
－
73
6
－
60

1,855

361

0
4
1
25
－
3

2
4
1
9
3
3

Non-operating income
Interest income
Dividends received
Equity in earnings of affiliates
Rent of real estate for investment
Foreign exchange gains
Gain on valuation of derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Depreciation on investments in real estateManagement cost on real estate for investment
Commission for purchase of treasury shares
Loss on cancellation of insurance policies
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores
Loss on liquidation of brands
Loss on valuation of investment securities
Loss on liquidation of subsidiaries
Loss on sales of shares of subsidiaries and associates

35

24

6,804

4,312

244

99

244

99

320
35
－
－
－
490

217
40
71
174
48
－

Total extraordinary losses

847

551

Net income before income taxes

6,202

3,860

Income taxes ― current
Income taxes ― deferred

4,366
(604)

1,216
167

Total income taxes

3,761

1,384

Net income

2,440

2,475

Profit attributable to owners of parent

2,440

2,475

― 10 ―

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal 2018
(March 1, 2018 to

Fiscal 2019
(March 1, 2019 toFebruary 28, 2019)
Income before minority interests
Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
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― 11 ―

February 29, 2020)
2,440

2,475

3,522
19
(9)
1

(1,251)
3
(12)
(45)

(218)

－

3,315
5,755

(1,305)
1,170

5,755

1,170

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2018 (March 1, 2018 to February 28, 2019)(Millions of yen unless otherwise stated)
Shareholders’ equity
Commonstock
Balance at the end of previous period

Capitalsurplus

2,486

Retainedearnings

18,18237,503

Total
shareholders’equityTreasurystock(6,310)51,861

Changes of items during the period
Dividends from surplus
Profit attributable to owners ofparentPurchase of treasury shares(1,851)(1,851)

2,440

2,440
(7,278)(7,278)

0

150

150

(125)

961

836

(0)

(0)

(702)

(7,414)

Disposal of treasury shares
Change in purchase of treasury
stock from affiliates accounted forby equity method
Change in equity in affiliates
accounted for by equity methodtreasury stock
Change of scope of equity method
Net changes in items excluding
shareholders’ equity during theperiod
Total

—

(124)

(6,123)(6,869)(13,117)

Balance at the end of current period

2,486

18,057

31,380(13,180)

38,743(6,712)

Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in purchase oftreasury stock fromaffiliates accounted
for by equity method
Change in equity inaffiliates accounted
for by equity methodtreasury stock
Change of scope ofequity method
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeSubscrip-tion
rights toshares

1,425

(20)

(161)

78

116

1,438

100

Total net
assets53,399(1,851)
2,440(7,278)
150
836

(0)
(7,414)
3,419

19

—

(9)

(114)

3,315

(9)

3,305

3,419

19

—

(9)

(114)

3,315

(9)

(9,811)

4,845

(1)

(161)

69

1

4,753

90

43,587― 12 ―

Fiscal 2019 (March 1, 2019 to February 29, 2020)(Millions of yen unless otherwise stated)
Shareholders’ equity
Commonstock
Balance at the end of previous period

Capitalsurplus

2,486

Retainedearnings

18,057

31,380Total
shareholders’equityTreasurystock(13,180)

38,743

Changes of items during the period
Dividends from surplus
Profit attributable to owners ofparentPurchase of treasury shares(1,747)(1,747)2,475

Disposal of treasury shares

18(10,852)2,475(3,597)(3,597)173
10,852

191—

Cancellation of treasury shares
Net changes in items excluding
shareholders’ equity during theperiodTotal—(10,833)

728

7,428

(2,677)

Balance at the end of current period

2,486

7,223

32,108(5,751)

36.,066

Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeSubscrip-tion
rights toshares

4,845

(1)

(161)

69

1

4,753

90

Total net
assets43,587(1,747)2,475(3,597)
191—(1,251)

3

—

(12)

(45)

(1,305)(16)(1,322)(1,251)
3,594

3

—

(12)

(45)

(1,305)(16)(3,999)

2

(161)

56

(43)

3,447

74

39,588― 13 ―

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2018
(March 1, 2018 to
February 28, 2019)

Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

Cash Flows from Operating Activities:
Net Income before income taxes

6,202

3,860

Depreciation and amortization

1,123

1,243

Impairment loss

320

217

Amortization of goodwill

496

496

Increase (decrease) in allowance for doubtful accounts

(6)

(48)

Increase (decrease) in provision for bonuses

(37)

13

Increase (decrease) in net defined benefit liability

4

(68)

Increase (decrease) in other provision

(378)

52

Interest and dividends income

(137)

(220)

0

2

(677)

―

(7)

4

Loss (gain) on valuation of derivatives

(898)

―

Loss (gain) on sales of investment securities

(244)

(99)

Interest expenses
Equity in (earnings) losses of affiliates
Foreign exchange losses (gains)

Loss (gain) on sales of shares of subsidiaries and associates

490―

Decrease (increase) in notes and accounts receivable ― trade

212

(72)

Loss (gain) on valuation of investment securities―

174

Decrease (increase) in inventories

(660)

37

Increase (decrease) in notes and accounts payable ― trade

(493)

319

Increase (decrease) in accrued consumption taxes

(46)

136

Increase (decrease) in advances received

(96)

(104)

Increase (decrease) in accounts payable - other

74

249

Decrease (increase) in other assets

99

80

Increase (decrease) in other liabilities

366

(5)

5,705

6,268

Interest and dividends income received

296

221

Interest expenses paid

(0)

(2)

Income taxes paid

(6,838)(6,916)

Income taxes refund

2,501

2,862

Net cash provided by (used in) operating activities

1,664

2,433

Subtotal― 14 ―

(Millions of yen)
Fiscal 2018
(March 1, 2018 to
February 28, 2019)

Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

Cash Flows from Investing Activities:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets

(592)

(714)

0

―

(16)

(71)

Purchase of investment securities(3,515)(9)

Proceeds from sales of investment securities

2,017

145

―

700

7,725

―

Payments of long-term loans receivable

(1)

(0)

Collection of long-term loans receivable

52

Purchase of long-term prepaid expenses

(27)

(49)

Other payments

(239)

(189)

Other proceeds

49

260

5,407

72

(102)

(92)

(7,278)(3,606)

Proceeds from redemption of investment securities
Proceeds from sales of shares of subsidiaries and associates

Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from sales of treasury stock36

68(1,851)(1,747)

(148)

(89)

(9,344)(5,468)(2)(2)

Net increase (decrease) in cash and cash equivalents(2,276)(2,963)

Cash and cash equivalents at beginning of period

6,026

3,749

Cash and cash equivalents at end of period

3,749

785

Cash dividends paid
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents― 15 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
Not applicable.
(Change in Presentation Method)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
From the subject fiscal year, the Company has applied “Partial Amendments to Accounting Standard for Tax
Effect Accounting” (ASBJ Statement No. 28, February 16, 2018). Deferred tax assets are shown in “Investments
and other assets,” and deferred tax liabilities in “Non-current liabilities.”(Consolidated Statements of Cash Flows)
Effective from the fiscal year under review, “income taxes refund” included in “income taxes paid” in the
Company’s “Cash Flows from Operating Activities” has been reclassified and presented as a separate accounting
line item due to its increased importance. As a result of this change in presentation method, steps have beentaken to adjust the Company’s consolidated financial statements for the previous fiscal period.
Based on the aforementioned, “income taxes paid” of ¥4,337 million recorded in “Cash Flows fromOperating Activities” of the Company’s consolidated statement of cash flow for the previous fiscal year has beenadjusted and classified as “income taxes paid” of ¥6,838 million and “income taxes refund” of ¥2,501 million.
(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 YONDOSHIHOLDINGS Employees’ Shareholding Association (“the Shareholding Association”) and satisfy certain
requirements. The trust acquires Company stock in an amount expected to be procured by the Shareholding
Association over a five-year period, and sells the shares to the Shareholding Association on a fixed date eachmonth. 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 to their 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 will discharge 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 to the trust(excluding ancillary expenses). At the end of the subject fiscal year, the book value of the subject treasury shareswas ¥170 million, for 61,800 shares at the end of the previous consolidated fiscal year, and ¥71 million, for
26,000 shares at the end of the subject consolidated fiscal year.
iii. Book value of debt recorded through application of the gross method
At the end of the previous consolidated fiscal year: ¥175 million
At the end of the subject consolidated fiscal year: ¥82 million(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stockcompensation plan (hereinafter, the “Plan”), with eligible persons the Company’s directors (excluding directors
who are audit and supervisory committee members) and directors who are audit and supervisory committee
members (excluding outside directors), as well as directors and corporate auditors (excluding outside corporate
auditors) of the Company’s major group companies from November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible companies― 16 ―

in accordance with rules for granting trust-based stock compensation to corporate officers as determined by theeligible companies. The Company will contribute funds to the trust, and the trust will use these funds to acquire
the Company’s shares, and grant them to eligible directors. In principle, directors and other officers will receive
the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at their book value
in the Trust (excluding the amount of ancillary expenses). The book value and number of shares of such treasury
stock was ¥126 million, for 50,000 shares at the end of the previous consolidated fiscal year, and ¥114 million,
for 45,353 shares at the end of the subject consolidated fiscal year.

(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using the segregatedfinancial information available within each segment to determine the allocation of management
resources and evaluate business results.
Based on the major products handled, the YONDOSHI HOLDINGS Group has identified theJewelry Business and the Apparel Business as its two reporting segments.
(1) Jewelry Business
F.D.C. Products Inc. and its subsidiary companies engage in the comprehensive development ofbrand businesses. This includes the design, manufacture and sale of various products focusing mainly
on jewelry and bags. The F.D.C. Products Group’s principal brands include 4°C, Canal4°C, andEAUDOUCE4°C.

(2) Apparel Business
AS’TY Inc. and its subsidiary companies engage in apparel business development activities.
Responsible for the manufacturing and apparel functions that draw on its design and marketing
capabilities, the AS’TY Group maintains an overseas production network in such countries as China,
Vietnam and Bangladesh while marketing products mainly through major apparel outlets, specialty
stores and general merchandise stores. age Co., Ltd. is active in the retail business focusing mainly on
women’s clothes, fashion accessories and practical clothing. The company’s is largely undertaken inWestern Japan.
2. Calculation Methods for Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
The accounting treatment methods for reporting segments are generally the same as those adopted for
preparing consolidated financial statements. Profits for reporting segments are operating income amounts.
Intrasegment sales and transfers are based on current market prices.

― 17 ―

3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2018, the Fiscal Year Ended February 28, 2019 (March 1, 2018 to February 28, 2019)(Millions of yen)
Reporting Segments

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

29,295

17,822

47,118―47,118

1

1,009

1,011

(1,011)―29,297
4,465
26,25818,832603
33,656

48,1295,068
59,914(1,011)(84)369

47,118
4,984
60,284

704

398

1,103

20

1,123

462

403

865

29

895

Notes:
1. (1) The adjustment amount of minus ¥84 million for segment income mainly includes amortization of goodwill totaling minus¥496 million, general administrative expenses that are not attributable to individual reporting segments amounting to minus¥558 million and eliminations of inter-segment transactions of ¥971 million.
(2) The adjustment amount of ¥512 million for segment assets is mainly comprised of an inter-segment offset amount totaling
minus ¥17,996 million, corporate assets of ¥14,648 million and the balance of unamortized goodwill of ¥3,723 million thatare not allocated to each reporting segment. Meanwhile, corporate assets are primarily made up of surplus operating funds(cash and deposits) that are not attributable to individual reporting segments.
(3) The adjustment amount of ¥20 million for depreciation and amortization relates to corporate assets that are not attributable
to individual reporting segments.
(4) The adjustment amount of tangible and intangible asset increase of ¥29 million relates to corporate assets that are not
attributable to individual reporting segments.
2.
Segment income matches operating income recorded on the consolidated statements of income.

Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)(Millions of yen)
Reporting Segments

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

26,987

17,98344,970―44,970

0

553

553

(553)

―

26,9873,319
26,282

18,536758
25,55045,542
4,077
51,832

(553)
(102)
1,904

44,9703,975
53,737

890

330

1,220

22

1,243

645

202

848

32

880

Notes:
1. (1) The adjustment amount of minus ¥102 million for segment income mainly includes amortization of goodwill totaling
minus ¥496 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥537 million and eliminations of inter-segment transactions of ¥931 million.
(2) The adjustment amount of ¥1,904 million for segment assets is mainly comprised of an inter-segment offset amount
totaling minus ¥10,983 million, corporate assets of ¥9,661 million and the balance of unamortized goodwill of ¥3,227 million
that are not allocated to each reporting segment. Meanwhile, corporate assets are primarily made up of surplus operating funds(cash and deposits) that are not attributable to individual reporting segments.
(3) The adjustment amount of ¥22 million for depreciation and amortization relates to corporate assets that are not attributable
to individual reporting segments.
(4) The adjustment amount of tangible and intangible asset increase of ¥32 million relates to corporate assets that are not― 18 ―

2.

attributable to individual reporting segments.
Segment income matches operating income recorded on the consolidated statements of income.

(Related Information)
Fiscal 2018, the Fiscal Year Ended February 28, 2019 (March 1, 2018 to February 28, 2019)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Information
i. Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.
ii. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of theCompany’s property, plant and equipment in the consolidated balance sheets, geographical information has been
omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or more of
the total operating revenues posted in the consolidated statement of income.

Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Information
i. Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.
ii. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of theCompany’s property, plant and equipment in the consolidated balance sheets, geographical information has been
omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or more of
the total operating revenues posted in the consolidated statement of income.

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2018, the Fiscal Year Ended February 28, 2019 (March 1, 2018 to February 28, 2019)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

277

Total
43

― 19 ―

Adjustment
amount

320

―

Total

320

Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

191

Adjustment
amount

Total
25

217

―

Total

217

(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
Fiscal 2018, the Fiscal Year Ended February 28, 2019 (March 1, 2018 to February 28, 2019)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥496 million and ¥3,723 million, respectively. The amounts of goodwill amortized and balanceof unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥496 million and ¥3,227 million, respectively. The amounts of goodwill amortized and balanceof unamortized goodwill related to goodwill that arose at the time of stock exchange.

(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2018, the Fiscal Year Ended February 28, 2019 (March 1, 2018 to February 28, 2019)
Not applicable.
Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)
Not applicable.

― 20 ―

(Per Share Information)(Yen)
Fiscal 2018
(March 1, 2018 to February 28, 2019)

1.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

Fiscal 2019
(March 1, 2019 to February 29, 2020)

1,883.28
96.03
96.01

1.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

1,822.10
112.18112.17

Notes: 1. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2018
(March 1, 2018 to
February 28, 2019)

Total earnings per share
Profit attributable to owners of parent
Amounts not applicable to ordinary shareholders
Profit attributable to owners of parent applicable to common
stock
Average number of common shares (Shares)

Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

2,440
—

2,475
—

2,440

2,475

25,415,080

22,071,819—
5,673(5,673)New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:85,800 shares—
1,312(1,312)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:80,700 shares

New share subscription rights
issued on November 22, 2018
11th issuance of new sharesubscription rights
Common stock:
34,500 shares

New share subscription rights
issued on November 22, 2018
11th issuance of new sharesubscription rights
Common stock:
34,500 shares

New share subscription rights
issued on November 22, 2018
12th issuance of new sharesubscription rights
Common stock:
28,200 shares

New share subscription rights
issued on November 22, 2018
12th issuance of new sharesubscription rights
Common stock:
28,200 shares

Net income per share adjusted for diluted shares
Adjustment to profit attributable to owners of parent per share
Increased number of common shares (Shares)(Subscription rights to shares)

Description of the diluted shares not included in the calculationof net income per share adjusted for diluted shares due to their
non-dilutive effect from the previous fiscal year

2. The basis for calculating net assets per share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2018
(March 1, 2018to
February 28, 2019)

Total net asset recorded on consolidated balance sheets
Deduction amount of total net asset recorded on consolidatedbalance sheets
Subscription rights to shares
Net assets applicable to common stock
Number of common stock utilized for the calculation of net assets
per share (Shares)

Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

43,58739,588

90

74

(90)
43,497(74)
39,51423,096,722

21,686,070

3. Company stock remaining in the YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust(hereinafter referred to as “the Trust”) and the Shares Grant Trust for Officers recorded as Treasury Stock in the
Company’s Shareholders’ Equity is included in the number of treasury stock to be deducted when computing the
average number of shares for the period for earnings per share calculation purposes as well as the number of treasury
stock to be deducted from the total number of shares issued and outstanding as of the end of the period for net assets
per share calculation purposes.
The number of treasury stock to be deducted when computing the average number of shares for the period for earnings
per share calculation purposes was 93,573 shares for fiscal 2018 and 89,427 shares for fiscal 2019. The number oftreasury stock to be deducted from the total number of shares issued and outstanding as of the end of the period for net
assets per share calculation purposes was 111,800 shares for fiscal 2018 and 71,353 shares for fiscal 2019.

― 21 ―

4. Other(1) Changes in Management (Planned effective date: May 28, 2020)
i. Change in Representative・ Candidate for new appointment as representative director
President and Representative Director, COO Tohru Hirota(Current Position: Director & Senior Managing Executive Officer, The Hiroshima Bank, Ltd.)・ Officer scheduled to retire
President and Representative Director, COO Akihiro Takiguchi
Note: Mr. Takiguchi will take office and serve exclusively as the representative director andpresident of F.D.C. Products Inc., which is largely responsible for the YONDOSHI HOLDINGSGroup’s Jewelry Business.
ii.

Other Changes (Planned effective date: May 28, 2020)
・ Scheduled Retirement of a Director (Excluding Audit/Supervisory Committee Member)
Hidenori Suzuki
・ Candidate for New Appointment as a Director and Audit/Supervisory Committee Member
Nobuko Nagafusa (Current Position: Lawyer, Kotohira Partners)
Notes:
1. Ms. Nagafusa is a candidate for the position of external director and independent officer
regarding takeover defense measures.
2. While Ms. Nagafusa changed her registered name following her marriage, work as a lawyer isconducted under her maiden name, Nobuko Kitagawa.
・ Scheduled Retirement of a Director and Audit/Supervisory Committee Member
Seisui Kamigaki
Note: Mr. Kamigaki is an external director.
Please refer to the press release “Notice of Planned Changes in Representative Director andManagement, the Organizational Structure of a Major Subsidiary, and Personnel” issued on April 13,
2020 for details.

― 22 ―