CONSOLIDATED FINANCIAL REPORTFISCAL 2017（Japanese GAAP）(March 1, 2017 to February 28, 2018)
April 9, 2018
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: http://www.yondoshi.co.jp/
Annual General Meeting of Shareholders date (planned): May 17, 2018
Fiscal 2017 Securities Report filing date (planned): May 18, 2018
Dividend payment commencement date (planned): May 18, 2018
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: Yes (for analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated Performance for FY 2017 (March 1, 2017 to February 28, 2018)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen%

Millions of yen

Profit attributable toOrdinary Income%

Millions of yen

owners of parent%

Millions of yen

FY 2017

48,060

(3.5)

6,102

(6.5)

7,562

(3.0)

5,293

6.7

FY 2016

49,797

(5.8)

6,529

6.8

7,796

13.7

4,962

16.0

(Note) Comprehensive income: FY 2017: ¥5,620 million ((1.9)%)
Net Income Per
Share

FY 2016: ¥5,728 million (72.9%)

Net Income Per
Share (Diluted)

Yen

Ordinary Income
to Total Assets

ROE

Yen

Ordinary Income
to Operating
Revenues%%%

FY 2017207.09206.8010.4
FY 2016193.38193.13
10.5(Reference) Equity in earnings of affiliated companies accounted for by the equity method:
FY 2017: ¥1,230 million
FY 2016: ¥1,088 million

11.7
12.7

12.7
13.1

(2) Consolidated Financial Position
Total Assets

Net Assets to Total

Net Assets

Net Assets per Share ofCommon Stock

AssetsMillions of yen

Millions of yen%

Yen

As of February 28, 2018

66,32153,39980.4

2,077.02

As of February 28, 2017

62,42049,07478.4

1,920.55(Reference) Shareholders’ equity: As of February 28, 2018: ¥53,299 million

As of February 28, 2017: ¥48,959 million(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

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

FY 2017

5,427(3,023)(1,665)

6,026

FY 2016

4,964(2,347)(2,305)

5,288

Operating Activities

Investing Activities― 1 ―Financing Activities

2.

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

FY 2016
FY 2017
FY 2018 (planned)3.

End of 4Q

AnnualCashDividend

Dividends

Payout Ratio

to Net Assets

Paid (Annual)(Consolidated)(Consolidated)

Cash Dividends

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

—
—
—

25.00
32.50
37.50

—
—
—

25.00
32.50
37.50

50.00
65.00
75.00

1,318
1,713

25.9
31.4
35.8

2.6
3.3

Forecast of Consolidated Results for FY 2018 (March 1, 2018 to February 28, 2019)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues

InterimFull Fiscal Year

4.

Operating Income

Ordinary Income

Profit attributable to

Net Income perowners of parent

Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

22,50049,000

0.3
2.0

2,300
6,150

(4.5)
0.8

3,000
7,650

(1.5)
1.2

2,100
5,350

(3.0)
1.1

82.16
209.32Other(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 28, 2018: 29,331,356 shares
As of February 28, 2017: 29,331,356 shares
2. Number of treasury stock
As of February 28, 2018: 3,669,847 shares
As of February 28, 2017: 3,838,799 shares
3. Average number of shares for the year
FY2017: 25,559,070 shares
FY2016: 25,662,520 shares
Notes:
1. The number of recorded treasury stock is inclusive of 100,600 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust Account 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,please refer to “Per Share Information” on page 19.

* This financial report for the fiscal 2017 is not subject to the review procedures.
* 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
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 theinformation from page 5.
2. The Company plans to hold a results briefing on April 9, 2018, for institutional investors and analysts. The
presentation materials used that day, will be made available on the Company’s website promptly after the
meeting.

― 2 ―Contents
1.

Overview of Business Results

4(1)Overview of Business Results for the Fiscal Year Ended February 28, 2018

4(2)

Overview of Financial Condition as of February 28, 2018

4

(3)

Overview of Cash Flows for the Fiscal Year Ended February 28, 2018

5

(4)

Outlook5(5)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2017 and Fiscal 2018

5

2.

Basic Stance on Selection of Accounting Standards

6

4.

Consolidated Financial Statements and Major Notes

7(1)

Consolidated Balance Sheets

7(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

9

Consolidated Statements of Income

9

Consolidated Statements of Comprehensive Income

10

(3)

Consolidated Statements of Changes in Net Assets

11

(4)

Consolidated Statements of Cash Flows

13

(5)

Notes to Consolidated Financial Statements

15(Notes Regarding Going Concern Assumptions)15(Segment Information)

15(Additional Information)

18(Per Share Information)

19(Important Subsequent Events)

19

4.

Other

20

(1)

20

Changes in Management― 3 ―1. Overview of Business Results(1) Overview of Business Results for the Fiscal Year Ended February 28, 2018
In fiscal 2017, the fiscal year ended February 28, 2018, the Japanese economy recovered at a moderate paceowing to the improvement in corporate earnings and employment conditions, while overseas the outlook
remained turbid as a result of such factors as political instability and rising geopolitical risk.
In the retail industry, business conditions remained unstable amid persistent budget-consciousness arisingfrom uncertainty about the future, despite indications of improved personal consumption together with inbounddemand.
Under these circumstances, during the fiscal year ended February 2018, the final 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 andbrand. Further, we implemented CSR-based management to establish a highly trusted corporate group, andworked to enhance enterprise value by strengthening internal controls, providing shareholder returns, andmaking medium to long-term investments linked to earnings growth.
Looking at the Group’s consolidated business results, net sales for the fiscal year under review amounted
to ¥48,060 million (down 3.5% compared with the previous fiscal year). From a profit perspective, operating
income came to ¥6,102 million (down 6.5% YoY), ordinary income was ¥7,562 million (down 3.0% YoY),
and profit attributable to owners of parent totaled ¥5,293 million (up 6.7% YoY).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group, which is largely responsible for the YONDOSHI HOLDINGS Group’s Jewelry
Business, is taking time to bring about a recovery in bridal jewelry sales. In addition, sales fell below plansover the December Christmas season, the period of peak demand.
As a result, net sales in the Jewelry Business segment for the fiscal year under review amounted to¥30,980 million (down 6.6% YoY), and operating income came to ¥5,469 million (down 8.5% YoY).
Apparel BusinessIn the Apparel Business, the AS’TY Group was successful in strengthening measures with major clients
utilizing its product planning capabilities and overseas production framework. Revenue increased from thesame period of the previous fiscal year, though operating income declined. Retailer age Co., Ltd. achieved
positive returns from expanded openings of new locations for its mainstay everyday fashion brand PALETTE,
along with measures to strengthen sales promotions.
As a result, business results trends in the Apparel Business segment were robust surpassing the previous
fiscal year. In specific terms, net sales for the fiscal year under review amounted to ¥17,079 million (up 2.7%
YoY), and operating income was ¥566 million (up 14.7% YoY).
(2) Overview of Financial Condition as of February 28, 2018
(Current Assets)
Current assets as of the end of the fiscal year under review stood at ¥19,546 million, up ¥982 million
compared with the end of the previous fiscal year. This was mainly due to the increase of ¥878 million inmerchandise and finished goods.
(Noncurrent Assets)
Noncurrent assets came to ¥46,774 million as of February 28, 2018, an increase of ¥2,917 million
compared with the previous fiscal year-end. While certain accounting line items decreased including goodwill,
which fell ¥496 million year on year, this increase was primarily due to the upswing in investment securities of¥3,520 million.
(Current Liabilities)
Current liabilities as of the end of the fiscal year under review stood at ¥8,038 million, down ¥653 million
compared with the end of the previous fiscal year. This largely reflected the year-on-year decline in income
taxes payable of ¥285 million(Noncurrent Liabilities)
Noncurrent liabilities were ¥4,882 million as of February 28, 2018, an increase of ¥228 million compared― 4 ―with the balance as of February 28, 2017. This was mainly due to the increase in deferred tax liabilities of ¥360
million, which more than offset the decrease in long-term loans payable of ¥101 million.
(Net Assets)
Total net assets as of the end of the fiscal year under review amounted to ¥53,399 million, an increase of¥4,325 million compared with the end of the previous fiscal year. This was mainly due to the increase inretained earnings of ¥3,776 million.
(3) Overview of Cash Flows for the Fiscal Year Ended February 28, 2018
Cash and cash equivalents as of the end of the fiscal year under review stood at ¥6,026 million, an
increase of ¥737 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥5,427 million, up ¥462 million compared with theprevious fiscal year. In the fiscal year under review, the major cash inflow was net income before income taxesof ¥7,605 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥3,023 million, up ¥675 million compared with the previous
fiscal year. The principal cash outflows for the fiscal year under review included purchase of investment
securities of ¥2,017 million and purchase of property, plant and equipment of ¥1,178 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥1,665 million, down ¥639 million compared with theprevious fiscal year. This largely reflected cash dividends paid of ¥1,516 million.
(4) Outlook
Operating conditions in the retail sector are expected to remain difficult. This is largely due to the forecast
trend toward continued frugality stemming from consumers’ anxieties regarding the future.
Against this backdrop, and as a part of efforts to become a century-old company and brand, the
YONDOSHI HOLDINGS Group recognizes the critical need to ensure that its corporate 4°C brand continues
to shine brightly.
YONDOSHI HOLDINGS has identified “Challenge and Change” as the key slogan under its Fifth“Challenge & Change” Medium-Term Management Plan, which begins from the fiscal year ending February
28, 2019. Guided by this plan, the YONDOSHI HOLDINGS Group will actively reinforce human resources in
the mainstay Jewelry Business and enhance the quality of management. In addition to increasing the value ofthe 4°C brand, the YONDOSHI HOLDINGS Group will also look to develop and nurture new business pillars
that will help to secure renewed growth.
In the future, the YONDOSHI HOLDINGS Group will continue to cultivate human resources, bolster
product capabilities, and assess market trends. Every will also be made to practice CSR-based management toestablish a highly trusted corporate group, while endeavoring to enhance corporate value by strengthening
internal controls, providing shareholder returns, and making medium- to long-term investments linked toearnings growth.
Taking each of these factors into consideration, net sales are projected to come in at ¥49,000 million,
operating income to total ¥6,150 million, ordinary income to come to ¥7,650 million, and profit attributable toowners of parent to amount to ¥5,350 million on a consolidated basis in the fiscal year ending February 28,
2019.
(5) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2017 and Fiscal 2018
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.
Under its fourth medium-term management plan, the YONDOSHI HOLDINGS Group also had a policy
to lift the dividend payout ratio on a progressive basis to 30% over the medium term. Based on this policy,
YONDOSHI HOLDINGS plans to pay a fiscal year-end cash dividend of ¥32.5 per common share. Together― 5 ―with the interim cash dividend paid of ¥32.5 per common share, the full fiscal year cash dividend for fiscal
2017 will therefore come in a ¥65 per common share. This will enable the Company to achieve its dividend
payout ratio target of 30%.
Under the Fifth Medium-Term Management Plan, which begins from the fiscal year ending February 28,
2019, YONDOSHI HOLDINGS will maintain its focus on the payment of higher cash dividends eachconsecutive fiscal year. In this manner, the Company will work to increase the level of returns to shareholders
and to achieve a dividend payout ratio of 30% or more. Taking the aforementioned into consideration,
YONDOSHI HOLDINGS plans to pay an interim and fiscal year-end cash dividend of ¥37.5 per commonshare for a full fiscal year cash dividend of ¥70 per common share, representing an eighth consecutive fiscal
year of cash dividend growth.
Furthermore, in an effort to better prepare the Group for the road ahead and to pursue businessdevelopment, YONDOSHI HOLDINGS will continue to enhance profitability and reinforce the Group’s
management and business platforms while fulfilling the expectations of shareholders going forward. At thesame time, the Group will take into consideration the internal working capital required to reinforce its
management structure in response to an increasingly competitive environment, cultivate new businesses andpursue business development through a variety of vehicles including M&As.

2. Basic Stance on Selection of Accounting Standards
The YONDOSHI HOLDINGS Group prepares its consolidated financial statements in accordance withJapanese Generally Accepted Accounting Principles. With respect to International Financial ReportingStandards (IFRS), the YONDOSHI HOLDINGS Group will respond adequately with consideration of thesituation in Japan and overseas.

― 6 ―3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2017

February 28, 2018

(As of February 28, 2017)(As of February 28, 2018)ASSETS
Current assets:
Cash and deposits

2,088,219

2,076,174

Notes and accounts receivable ― trade

3,137,084

3,061,207

Short-term investment securities

3,200,000

3,950,000

Merchandise and finished goods

7,453,776

8,332,336

Work in process

844,796507,681

Raw materials and supplies

703,247

633,136

Deferred tax assets

576,831451,362

Advance payments-trade

5,280

20,386

Accounts receivable-other

301,829

208,924

Other

255,212208,191

Allowance for doubtful accounts(2,357)(2,686)

18,563,921

19,546,714

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

5,682,408

5,918,332

Land

5,492,215

5,492,215

Lease assets, net

135,888

68,898Other, net

815,913

737,940

12,126,426

12,217,387

Goodwill

4,716,796

4,220,291

Lease assets

150,972

70,923

Total property, plant and equipment
Intangible assets:

Right of trademark

883

2,284

61,41948,8304,930,072

4,342,329

Investment securities

22,248,070

25,768,779

Guarantee deposits

267,444258,778

Long-term loans receivable

19,09915,852

Deferred tax assets

753,485581,650

Other
Total intangible assets
Investments and other assets:

Deferred tax assets for land revaluation

71,49071,490Real estate for investment, net

453,866

449,269

Net defined benefit asset

520,200

656,629

Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and otherOther

1,895,332

1,887,682

79,906

78,681

599,713553,047

Allowance for doubtful accounts(108,150)(107,030)

Total investments and other assets

26,800,458

30,214,831

Total noncurrent assets
Total assets― 7 ―43,856,957

46,774,548

62,420,878

66,321,262

(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2017

February 28, 2018

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

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade3,955,935

Lease obligations

4,077,362

199,671

114,551

Income taxes payable

1,141,834

856,205

Provision for bonuses

351,451

251,351

Provision for directors’ bonuses

65,05013,300Asset retirement obligations

1,000

34,406Other

2,977,267

2,691,766

Total current liabilities

8,692,207

8,038,943

Long-term loans payable

378,940

277,470

Lease obligations

175,981

85,364Long-term guarantee deposited

317,622

325,381Noncurrent liabilities:

Deferred tax liabilities

1,687,876

2,048,576

Net defined benefit liability

573,336

568,010

Provision for directors’ retirement benefits

378,418

416,528

Asset retirement obligations

993,306

1,012,744

Other

148,733

148,733

Total noncurrent liabilities
Total liabilities

4,654,214

4,882,809

13,346,422

12,921,753

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,145,727

18,182,008

Retained earnings

33,727,198

37,503,586

Treasury stock(6,510,635)(6,310,953)

Total shareholders’ equity

47,848,810

51,861,161

1,336,181

1,425,917

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

16,959(20,418)(161,985)(161,985)

Foreign currency translation adjustments

72,94078,638Remeasurements of defined benefit plans(153,265)

116,129

Total accumulated other comprehensive income

1,110,829

1,438,281

Subscription rights to shares
Total net assets
Total liabilities and net assets― 8 ―114,815

100,066

49,074,456

53,399,509

62,420,878

66,321,262

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Fiscal 2016

Fiscal 2017

(March 1, 2016 to(March 1, 2017 to

February 28, 2017)

February 28, 2018)

Net sales

49,797,466

48,060,394

Cost of Sales

20,449,099

20,010,594

Gross profit

29,348,366

28,049,799

Selling, general and administrative expenses

22,818,564

21,947,186

Operating income

6,529,802

6,102,613

Non-operating income
Interest income

15,56423,262

Dividends received
Equity in earnings of affiliates

90,91492,747

1,088,146

1,230,794

Rent of real estate for investment

73,14073,140－12,858Foreign exchange gains
Other
Total non-operating income

41,32437,283

1,309,089

1,470,087

Non-operating expenses
Interest expenses

239

174

Depreciation on investments in real estate

4,697

4,685

Management cost on real estate for investment

2,046

2,073

Commission for purchase of treasury stock

833－

Foreign exchange losses

16,114－

Other

18,035

3,304

Total non-operating expenses

41,967

10,238

7,796,924

7,562,462－

259,796

Ordinary income
Extraordinary income
Gain on sales of change in equity
Settlement received

23,400－Total extraordinary income

23,400259,796
160,412Extraordinary loss
Impairment loss

261,928

Loss on sales of shares of subsidiaries and associates

493,781－

Loss on closing of stores

22,46934,308Loss on abandonment of inventories

13,658－Loss on liquidation of brands

84,541

21,566

Total extraordinary losses

876,379

216,287

Net income before income taxes

6,943,945

7,605,971

Income taxes ― current

2,264,107

1,887,092

Income taxes ― deferred(282,725)

425,878

Total income taxes

1,981,382

2,312,970

Net income

4,962,562

5,293,000

Profit attributable to owners of parent

4,962,562

5,293,000― 9 ―Consolidated Statements of Comprehensive Income(Thousands of yen)
Fiscal 2016

Fiscal 2017

(March 1, 2016 to(March 1, 2017 to

February 28, 2017)

February 28, 2018)

Income before minority interests

4,962,562

5,293,000

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

435,793324,251

Deferred gains or losses on hedges
Revaluation reserve for land

50,485(37,063)(3,922)－Foreign currency translation adjustments(8,226)

5,697

Remeasurements of defined benefit plans, net of tax

106,602130,350

184,821(95,784)

765,553
5,728,116

327,451
5,620,452

5,728,116

5,620,452－－

Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to non controllinginterests― 10 ―

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2016 (March 1, 2016 to February 28, 2017)(Thousands of yen unless otherwise stated)

Balance at the end of previous period

Shareholders’ equity
Treasury stock
Treasurystock (held
RetainedbyTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,146,513

29,958,714(5,289,702)(478,595)

Total
treasury
stock

Total
shareholders’equity(5,768,298)

44,823,450

Changes of items during the period
Dividends from surplus(1,194,078)

Profit attributable to owners of parent

4,962,562

Purchase of treasury stock
Disposal of treasury stock
Sales of treasury stock from
Employee Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period(1,194,078)
4,962,562(865,887)(865,887)(865,887)

15,354

15,354

14,569108,194108,194(785)

108,194—(785)

3,768,483(850,532)

108,194(742,337)

3,025,360

2,486,520

18,145,727

33,727,198(6,140,235)(370,400)(6,510,635)

47,848,810(Thousands of yen unless otherwise stated)
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
stock
Disposal of treasury
stock
Sales of treasury stockfrom Employee Stock
Ownership Trust
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 tosharesTotal net
assets810,524(34,981)(158,063)

81,167(353,371)

345,275

69,09745,237,823(1,194,078)
4,962,562(865,887)
14,569108,194
525,656

51,940(3,922)(8,226)200,105

765,553

45,718811,271525,656

51,940(3,922)(8,226)200,105

765,553

45,7183,836,632

1,336,181

16,959(161,985)

72,940(153,265)

1,110,829

114,815

49,074,456― 11 ―

Fiscal 2017 (March 1, 2017 to February 28, 2018)(Thousands of yen unless otherwise stated)

Balance at the end of previous period

Shareholders’ equity
Treasury stock
Treasurystock (held
RetainedbyTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,145,727

33,727,198(6,140,235)(370,400)

Total
treasury
stock

Total
shareholders’equity(6,510,635)

47,848,810

Changes of items during the period
Dividends from surplus(1,516,613)

Profit attributable to owners of parent

5,293,000(1,516,613)
5,293,000

Purchase of treasury stock
Disposal of treasury stock
Change in equity in affiliates
accounted for by equity
method-treasury stock
Sales of treasury stock from
Employee Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period

36,280

(510)

(510)

(510)

157,381

157,381

193,661(49,925)(49,925)(49,925)

92,73892,73892,738—36,2803,776,387

106,944

92,738

199,682

4,012,350

2,486,520

18,182,008

37,503,586(6,033,290)(277,662)(6,310,953)

51,861,161(Thousands of yen unless otherwise stated)
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
stock
Disposal of treasury
stock
Change in equity inaffiliates accounted
for by equity
method-treasury stock
Sales of treasury stockfrom Employee Stock
Ownership Trust
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 tosharesTotal net
assets

1,336,181

16,959(161,985)

72,940(153,265)

1,110,829

114,815

49,074,456(1,516,613)
5,293,000(510)
193,661(49,925)
92,73889,736(37,377)

89,736(37,377)

1,425,917(20,148)

5,697

269,395

327,451(14,749)

312,702—

5,697

269,395

327,451(14,749)

4,325,053(161,985)

78,638116,129

1,438,281

100,066

53,399,509― 12 ―

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal 2016

Fiscal 2017

(March 1, 2016 to(March 1, 2017 to

February 28, 2017)

February 28, 2018)

Cash Flows from Operating Activities:
Net Income before income taxes

6,943,945

7,605,971

Depreciation and amortization

1,176,146

1,116,072

Impairment loss

261,928

160,412

Amortization of goodwill

496,504

496,504

Increase (decrease) in allowance for doubtful accounts(15,439)(790)

Increase (decrease) in provision for bonuses(157,977)(100,100)

Increase (decrease) in net defined benefit liability

71,966

66,468

Increase (decrease) in other provision

10,753(13,640)

Interest and dividends income(106,478)(116,010)

Settlement received(23,400)―

Interest expenses

239

174

(1,088,146)(1,230,794)

Loss (gain) on change in equity―(259,796)

Foreign exchange losses (gains)

4,662

11,964Equity in (earnings) losses of affiliates―(2)

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

Loss (gain) on sales of investment securities

493,781―

Decrease (increase) in notes and accounts receivable ― trade313,90277,347

Decrease (increase) in inventories(365,560)(469,336)

Increase (decrease) in notes and accounts payable ― trade(185,981)

122,038

Increase (decrease) in accrued consumption taxes(159,233)(88,522)

Increase (decrease) in advances received(163,608)(82,569)(615)(93,382)

Decrease (increase) in other assets(213,935)(154,084)

Increase (decrease) in other liabilities

135,415

76,8107,407,366

7,124,736

226,138

255,613

(239)

(174)

Increase (decrease) in accounts payable - other

SubtotalInterest and dividends income received
Interest expenses paid
Settlement package received

23,400―

Income taxes paid

(2,692,397)(1,952,933)

Net cash provided by (used in) operating activities

4,964,266

5,427,241― 13 ―

(Thousands of yen)
Fiscal 2016

Fiscal 2017

(March 1, 2016 to(March 1, 2017 to

February 28, 2017)

February 28, 2018)

Cash Flows from Investing Activities:
Purchase of property, plant and equipment(926,305)(1,178,341)

Proceeds from sales of property, plant and equipment

12,543

4,782

Purchase of intangible assets(6,754)(6,352)

Proceeds from redemption of securities

300,000―(2,517,217)(2,017,135)

02Proceeds from redemption of investment securities

500,000

200,000

Payments of long-term loans receivable(5,960)(700)Collection of long-term loans receivable

4,979

3,946

Purchase of long-term prepaid expenses(117,120)(39,528)

402,580―

Other payments(248,898)(127,770)

Other proceeds

254,343

137,337(2,347,809)(3,023,759)

Repayment of long-term loans payable(99,870)(101,470)

Purchase of treasury stock(865,887)(510)

119,555

158,903(1,194,078)(1,516,613)

Purchase of investment securities
Proceeds from sales of investment securities

Change of scope of consolidation ─ proceeds from sales of sharesof subsidiaries

Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:

Proceeds from sales of treasury stock
Cash dividends paid
Other payments(265,073)(205,828)(2,305,353)(1,665,519)

Effect of exchange rate change on cash and cash equivalents(8,728)(7)

Net increase (decrease) in cash and cash equivalents

302,375

737,955

Cash and cash equivalents at beginning of period

4,985,844

5,288,219

Cash and cash equivalents at end of period

5,288,219

6,026,174

Net cash provided by (used in) financing activities― 14 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
Not applicable.

(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofmanagement 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,
EAUDOUCE4°C and Luria 4°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
in Western 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.
3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

33,166,923

16,630,542

49,797,466―

49,797,466

26,920988,597

1,015,517(1,015,517)

―

Total

33,193,844

17,619,140

50,812,984(1,015,517)

49,797,466

Segment income

5,980,208

494,438

6,474,647

55,155

6,529,802

Segment assets

32,336,203

22,936,863

55,273,066

7,147,812

62,420,878

Depreciation

797,879

369,613

1,167,492

17,805

1,185,298

Increase in property, plantand equipment andintangible assets

749,823

202,481952,304―

952,304

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Other items― 15 ―

Notes:1. (1) The adjustment amount of ¥55,155 thousand for segment income mainly includes amortization of goodwill totaling
minus ¥496,504 thousand and general administrative expenses that are not attributable to individual reporting segments
amounting to minus ¥551,659 thousand.
(2) The adjustment amount of ¥7,147,812 thousand for segment assets is mainly comprised of corporate assets of¥5,619,065 thousand and the balance of unamortized goodwill of ¥4,716,796 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥17,805 thousand for depreciation and amortization 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 2017, the Fiscal Year Ended February 28, 2018 (March 1, 2017 to February 28, 2018)(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

30,980,826

17,079,568

48,060,394―

48,060,394

1,145

1,006,384

1,007,980(1,007,980)

―

Total

30,981,972

18,086,403

49,068,375(1,007,980)

48,060,394

Segment income

5,469,632

566,996

6,036,629

65,984

6,102,613

Segment assets

34,852,323

23,409,774

58,262,098

8,059,164

66,321,262

Depreciation

737,324

358,710

1,096,035

20,036

1,116,072

Increase in property, plantand equipment andintangible assets

473,665

728,265

1,201,930

28,1291,230,060

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Other items

Notes:
1. (1) The adjustment amount of ¥65,984 thousand for segment income mainly includes amortization of goodwill totaling
minus ¥496,504 thousand, general administrative expenses that are not attributable to individual reporting segments
amounting to minus ¥465,745 thousand and eliminations of inter-segment transactions of ¥1,030,848 thousand.
(2) The adjustment amount of ¥8,059,164 thousand for segment assets is mainly comprised of an inter-segment offset
amount totaling minus ¥20,340,063 thousand, an adjustment amount for shares of subsidiaries and associates accounted forby the equity method of ¥11,917,036 thousand, corporate assets of ¥12,201,053 thousand and the balance of unamortized
goodwill of ¥4,220,291 thousand 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 ¥20,036 thousand for depreciation and amortization 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.

(Related Information)
Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)
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― 16 ―

the Company’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 moreof the total operating revenues posted in the consolidated statement of income.

Fiscal 2017, the Fiscal Year Ended February 28, 2018 (March 1, 2017 to February 28, 2018)
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 Informationiii. 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.
iv. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of
the Company’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 moreof the total operating revenues posted in the consolidated statement of income.

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)(Thousands of yen)
Reporting Segments
Jewelry BusinessImpairment loss

119,705

Apparel Business

Adjustment
amountTotal

142,223―

261,928

Total

261,928

Fiscal 2017, the Fiscal Year Ended February 28, 2018 (March 1, 2017 to February 28, 2018)(Thousands of yen)
Reporting Segments
Jewelry BusinessImpairment loss

142,263

Apparel Business
17,789Adjustment
amountTotal
160,412―

Total

160,412(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)
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 ¥496,504 thousand and ¥4,716,796 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2017, the Fiscal Year Ended February 28, 2018 (March 1, 2017 to February 28, 2018)
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― 17 ―

segments were ¥496,504 thousand and ¥4,220,291 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.

(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)
Not applicable.
Fiscal 2017, the Fiscal Year Ended February 28, 2018 (March 1, 2017 to February 28, 2018)
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 Tax Assets”(Accounting Standards Board of Japan (ASBJ) Guidance No. 26, March 28, 2016), from the subject fiscal
year.
(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 dateeach month. When the trust is concluded, if the trust has earned a profit from a rise in the share price, thefunds 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 theguarantee article in the loan agreement the Company will discharge the entire debt to the bank, with noadditional 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 thetrust (excluding ancillary expenses). At the end of the subject fiscal year, the book value of the subject
treasury shares was ¥370,400 thousand, for 134,200 shares at the end of the previous consolidated fiscal
year, and ¥277,662 thousand, for 100,600 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: ¥378,940 thousandAt the end of the subject consolidated fiscal year: ¥277,470 thousand― 18 ―

(Per Share Information)(Yen)
Fiscal 2016
(March 1, 2016 to February 28, 2017)

1.
2.
3.

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

Fiscal 2017
(March 1, 2017 to February 28, 2018)

1,920.55
193.38193.131.
2.
3.

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

2,077.02
207.09206.80Notes: 1. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2016
(March 1, 2016 to
February 28, 2017)

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 2017
(March 1, 2017 to
February 28, 2018)

4,962,562—

5,293,000—

4,962,562

5,293,000

25,662,520

25,559,070—
32,655(32,655)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:
102,000 shares—
35,177(35,177)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:
102,000 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

New share subscription rights
issued on June 8, 2016
9th issuance of new sharesubscription rights
Common stock:27,000 shares
New share subscription rights
issued on June 8, 2016
10th issuance of new sharesubscription rights
Common stock:
24,700 shares

2. The basis for calculating net assets per share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2016
(March 1, 2016 to
February 28, 2017)

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 2017
(March 1, 2017to
February 28, 2018)

49,074,456

53,399,509

114,815

100,066(114,815)
48,959,640(100,066)
53,299,442

25,492,557

25,661,509

3. The Company’s shares held by the trust-type employee ownership plan are recognized as treasury stock inconsolidated financial statements. As a result, the number of common shares as of the end of the period used to
calculate the aforementioned net assets per share amount as well as the average number of shares for the period used
to calculate the aforementioned earnings per share amount are after deducting the Company’s shares held by thetrust-type employee ownership plan.

(Important Subsequent Events)
Not applicable.

― 19 ―

4. Other(1) Changes in Managementi. Changes in representative director
Not applicable.
ii. Other management assignments (scheduled date of appointment: May 17, 2018)
・ Newly appointed directors (excluded Audit/Supervisory Committee Members)
Ichiro Okafuji (Currently Executive Officer, General Manager, responsible for F.D.C. Products
Inc.)
Ichiro Ibaraki
Mitsutaka Sato
Note: Mr. Sato is a candidate for the position of outside director.
・ Newly appointed director (Audit/Supervisory Committee Member)
Hideo Sakakibara (Currently Professor Emeritus, University of Toyama, Professor Emeritus,
Rissho University)
Mr. Sakakibara is a candidate for the position of outside director.
iii. Candidate director (alternate Audit/Supervisory Committee Member)
Kiyoshi Shin (currently an attorney-at-law)― 20 ―