CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 29, 2024
(March 1, 2023 to August 31, 2023)
October 6, 2023

YONDOSHI HOLDINGS INC. is listed on the Prime Market of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Hidetoshi Masuda, President and Representative Director
Masahiko Nishimura, Managing Director, Managing Executive Officer
representative for Finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 10, 2023
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for analysts and institutional investors)
Dividend payment commencement date (planned): November 10, 2023
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2023
(March 1, 2023 to August 31, 2023)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating Income
Ordinary Income
owners of parent

FY2023 First Half
FY2022 First Half
Note: Comprehensive income

Millions of yen％

19,11018,5143.2
4.0

Millions of yen

1,069
645

FY2023 First Half: 1,269 million yen (－%)

Net Income
per Share

FY2023 First Half
FY2022 First Half％

Millions of yen％

Millions of yen

％

65.7
50.1

1,284
822

56.2
14.9

696
513

35.7
83.2

FY2022 First Half: (2,913) million yen (－%)

Net Income per
Share after Dilution
Yen

Yen

32.49

—

23.95
—
(Reference) Operating income before the amortization of goodwill:
FY 2023 First Half: ¥1,317 million
FY 2022 First Half: ¥893 million
The Company considers operating income before the amortization of goodwill to be an important management indicator.

(2) Consolidated Financial Position
Total Assets
Millions of yen

August 31, 2023
February 28, 2023

Net Assets to Total
AssetsNet Assets
Millions of yen

52,486

38,592

Net Assets per Share

%

Yen

73.5

1,798.21

50,211
38,21476.0(Reference)Shareholders’ equity: August 31, 2023: 38,559 million yen
February 28, 2023: 38,183 million yen
2.

1,780.71

Dividends
Dividends per Share

(Record Date)

End of 1Q

End of 2Q
Yen

End of 3Q
Yen

Fiscal 2022—
41.50
Fiscal 2023—
41.50
Fiscal 2023
(Forecast)
Note: Revision to the most recently announced cash dividend forecast: No-1-

AnnualYear-end
Yen

Yen

Yen

—

41.50

83.00

—

41.50

83.00

3.

Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 29, 2024
(March 1, 2023 to February 29, 2024)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable to
Net Income
Operating Income
Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen%

Millions of yen%

Millions of yen

Fiscal year
ending40,000
1.2
2,100
6.1
2,500
February 29,2024
Note: Revision to the most recently announced operating results forecast: No(Reference) EPS before the amortization of goodwill in FY 2023 is ¥83.78.

%

6.7

Millions of yen

1,300

%

13.1

Yen en

60.63

Notes
(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: Yes(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
August 31, 2023: 24,331,356 sharesFeb. 28, 2023: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2023: 2,888,150 sharesFeb. 28, 2023: 2,888,198 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2023 First Half: 21,443,223 shares
FY2022 First Half: 21,439,768 shares
Note: The number of recorded treasury stock includes 132,170 of the Company’ shares held by the Shares Grant
Trust for Officers as of the end of the second quarter of the subject consolidated fiscal year.

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
based on management’s assumptions and beliefs that are determined to be reasonable in light ofcurrently 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, pleaserefer to “1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated
Results Forecasts and Other Future Predictions” on page 5.
2.

The Company plans to hold a financial results briefing on October 6, 2023 (Friday) for institutional
investors and analysts. Presentation materials used that day will be posted to the Company’s website
promptly after the briefing.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

4(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income Second Quarter Cumulative

8

Consolidated Quarterly Statements of Comprehensive Income Second Quarter Cumulative

9(3)

Consolidated Quarterly Statements of Cash Flows

10

(4)

Notes to Consolidated Quarterly Financial Statements

12(Notes Regarding Going Concern Assumptions)

12(Notes Regarding Substantial Changes in Shareholders’ Equity)

12(Application of Special Accounting Treatment in the Preparation of the Consolidated

12

Financial Statements)(Changes in Accounting Policies)

12(Additional Information)

12(Segment Information)

13(Matters related to Revenue Recognition)

14(Important Subsequent Events)

14

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the second quarter cumulative period (March 1, 2023, to August 31, 2023) of fiscal 2023 (ending
February 2024), the Japanese economy showed signs of a modest recovery as economic activity returned
to normal with the easing of restrictions implemented in response to the COVID-19 pandemic.
Nevertheless, the outlook for the future remains uncertain, including concerns of a global recession due
to price increases to meet soaring costs, and the impact of monetary policies in Europe and the UnitedStates.
In the retail sector, consumer spending showed signs of recovery, including continued strong sales ofhigh-ticket items, and an increase in demand from inbound tourism. However, wage increases have not
kept pace with the increase in commodity prices, and some concerns have been raised about a future
recovery in consumption.
Under such circumstances, YONDOSHI HOLDINGS Group, in response to changes in the businessenvironment, is fully leveraging the strengths of the corporate group to provide products and services thatexceed customer expectations, with the aim of further growth. In addition, the Company practiced
sustainable management to establish a highly trusted corporate group, and worked to enhance enterprisevalue by strengthening internal controls, providing shareholder returns, and making medium- to longterm investments linked to earnings growth.
As a result, net sales for the subject second quarter cumulative period amounted to ¥19,110 million(up 3.2% from the same period of the previous fiscal year), with operating income of ¥1,069 million (up65.7%), ordinary income of ¥1,284 million (up 56.2%), and profit attributable to owners of parent to ¥696
million (up 35.7%). Operating income before the amortization of goodwill, which the Company considers
to be an important management indicator, amounted to ¥1,317 million (up 47.4%).
Operating results by business segment were as follows.
Jewelry Business
Jewelry business company The F.D.C. Products Group made steady progress with business restructuring.
Although revenue declined due to the consolidation of bridal jewelry specialty stores, the profit margin
improved. For fashion jewelry, sales at existing stores rose from the previous fiscal year on efforts tobroaden the base of female customers, and new customer development. Sales from the continually
expanding e-commerce channel remained positive, registering double-digit growth.
As a result, net sales in the Jewelry Business segment amounted to ¥7,873 million (down 5.2% fromthe same period of the previous fiscal year), with operating income of ¥533 million (up 44.0%).
Apparel Business
Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, recorded a year-on-year increasein sales at existing stores, which along with a boost from opening new stores, resulted in gains for bothrevenue and earnings.
Apparel manufacturing and wholesaler The AS’TY Group expanded measures with major business
partners against the backdrop of the overseas production bases that are its strength, recording substantial
gains in both revenue and earnings.
As a result, net sales in the Apparel Business segment amounted to ¥11,237 million (up 10.1% fromthe same period of the previous fiscal year), with operating income of ¥777 million (up 58.4%), for bothrevenue and earnings.
(2) Explanation of Financial Condition
Assets, Liabilities and Net Assets
Total assets at the end of the subject second quarter cumulative period (August 31, 2023) amounted to¥52,486 million, an increase of ¥2,275 million from the end of the previous fiscal year (February 28,2023). This was due mainly to an increase of ¥2,314 million in investment securities. Total liabilities
amounted to ¥13,893 million, an increase of ¥1,897 million from the end of the previous fiscal year, due
mainly to an increase of ¥2,100 million in short-term borrowings. Total net assets at the end of the subject
period amounted to ¥38,592 million, an increase of ¥378 million from the end of the previous fiscal year,
due mainly to an increase of ¥523 million in valuation difference on available-for-sale securities.

-4-

Cash Flows
Cash and cash equivalents at the end of the subject second quarter cumulative period amounted to ¥2,012
million, an increase of ¥213 million from the end of the previous fiscal year (February 28, 2023).
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥1,356 million, an increase of ¥74 million fromthe same period of the previous fiscal year. This was due mainly to income before income taxes, and noncash items such as depreciation.
(Cash Flows from Investing Activities)
Net cash used in investing activities amounted to ¥2,340 million, an increase of ¥106 million from thesame period of the previous fiscal year. This was due mainly to purchases of investment securities, andproperty, plant, and equipment.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥1,197 million, an increase of ¥814 million fromthe same period of the previous fiscal year. This was due mainly to an increase in short-term borrowings,
against cash dividends paid.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Consolidated results forecasts for fiscal 2023 are unchanged from those announced on April 14, 2023.

-5-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 28, 2023
(As of February 28, 2023)

End of the Second Quarter of
the Fiscal Year Ending
February 29, 2024
(As of August 31, 2023)

1,804
2,876
7,647
70
685
620
(5)

2,017
2,838
7,527
65
519
749
(5)

13,69913,711

4,265
5,839
433

4,319
5,839
473

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Other, net

10,538

10,632Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

1,737
369

1,489
425

Total intangible assets

2,107

1,914

Investments and other assets:
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts

19,408
349
4,156
(47)

21,723
364
4,186
(47)

Total investments and other assets

23,866

26,22736,512

38,77450,211

52,486

Total noncurrent assets
Total assets

-6-

５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 28, 2023
(As of February 28, 2023)

End of the Second Quarter of
the Fiscal Year Ending
February 29, 2024
(As of August 31, 2023)

2,089
692
531
240
33
208
2,077

2,193
627
2,100
489
184
30
104
1,786

5,872

7,516

184

213

501
1,130
4,308

493
1,092
4,577

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Electronically recorded obligations – operating
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Asset retirement obligations
Other

―

Total current liabilities
Noncurrent liabilities:
Provision for share-based remuneration for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Other

6,124

6,377

Total liabilities

Total noncurrent liabilities

11,996

13,893

NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock

2,486
7,189
31,056(6,148)

2,486
7,178
30,859(6,137)

34,584

34,387

Other accumulated 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

Total shareholders’ equity

4,052
0
(233)
2
(222)

4,575
44
(233)
－
(214)

Total other accumulated comprehensive income

3,599

4,172

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

-7-

30

33

38,214

38,59250,211

52,486

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2023
(March 1, 2022 toAugust 31, 2022)

First Half of the
Fiscal Year Ending
February 29, 2024
(March 1, 2023 toAugust 31, 2023)

Net sales
Cost of Sales

18,514
9,353

19,1109,737

Gross profit

9,161

9,373

Selling, general and administrative expenses

8,516

8,303

Operating income

645

1,069

Non-operating income
Interest income
Dividends received
Foreign exchange gains
Subsidy income
Other

42
100
5
0
30

72
113
9
―
22

179

217

0
1
0

0
0
0

Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of insurance policies
Other

2

1

Ordinary income

Total non-operating expenses

822

1,284

Extraordinary income
Gain on sales of investment securities

293―

Total extraordinary income

293―

Extraordinary loss
Impairment loss
Loss on closing of stores
Building demolition expenses
Loss on liquidation of subsidiaries

95
5
9
7

59
23
―
―

Total extraordinary losses

117

83

Net income before income taxes

997

1,200

Total income taxes

484

504

Net income

513

696

Profit attributable to owners of parent

513

696

-8-

Consolidated Quarterly Statements of Comprehensive Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2023
(March 1, 2022to
August 31, 2021)
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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent-9-First Half of the
Fiscal Year Ending
February 29, 2024
(March 1, 2023 toAugust 31, 2023)
513

696

(3,469)
41
1
(0)

523
44
(2)
8

(3,426)(2,913)572
1,269(2,913)

1,269

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2023
(March 1, 2022 toAugust 31, 2022)
Cash flows from operating activities:
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in other provisionInterest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities

First Half of the
Fiscal Year Ending
February 29, 2024
(March 1, 2023 toAugust 31, 2023)

997
390
95
248
0
2
(13)
25
(142)
0
0
(293)
(0)

1,200
342
59
248
0
(56)
(10)
26
(185)
0
(0)
―
―

(356)

37

69

289

79

42

(17)
77
(78)
3
103

(35)
7
(116)
209
(97)

Subtotal

1,191

1,963

Interest and dividends income received
Interest expenses paid
Subsidies received
Income taxes paid
Income taxes refund

142
(0)
0
(399)
347

182
(0)
―
(913)
125

Net cash provided by (used in) operating activities

1,282

1,356

Subsidy income
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Increase (decrease) in accounts payable ― other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in other assets
Increase (decrease) in other liabilities- 10 -

(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2023
(March 1, 2022 toAugust 31, 2022)
Cash flows from investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Collection of long-term loans receivable
Purchase of long-term prepaid expenses
Other payments
Other proceeds

First Half of the
Fiscal Year Ending
February 29, 2024
(March 1, 2023 toAugust 31, 2023)

(380)
(119)
(2,003)
364
0
(11)
(122)
39

(411)
(121)
(1,523)
―
0
(18)
(291)
26

Net cash provided by (used in) investing activities(2,234)(2,340)Cash flows from financing activities:
Net increase (decrease) in short-term borrowings
Proceeds from sales of treasury shares
Purchase of treasury stock
Cash dividends paid
Other, net

1,300
―
(0)
(892)
(23)

2,100
0
(0)
(893)
(8)

Net cash provided by (used in) financing activities

383

1,197

1

0

Net increase (decrease) in cash and cash equivalents

(567)

213

Cash and cash equivalents at beginning of period

2,900

1,799

Cash and cash equivalents at end of period

2,332

2,012

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

(4) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial
Statements)(Calculation of Tax Expense)
Tax expense has been calculated by rationally estimating the effective tax rate after the application oftax effect accounting for profit before income taxes in the consolidated fiscal year, including the
subject second quarter period, and multiplying this estimated effective tax rate by profit before
income taxes.
(Changes in Accounting Policies)(Adoption of Implementation Guidance on Accounting Standard for Fair Value Measurement)
Effective from the beginning of the first quarter of the subject fiscal year, the Company adopted the“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.
31, June 17, 2021; hereinafter, “Implementation Guidance on Accounting Standard for Fair Value
Measurement”). Under the transitional treatment stipulated in Paragraph 27-2 of the “Implementation
Guidance on Accounting Standard for Fair Value Measurement”, the Company decided to adopt the
new accounting policy stipulated by the Implementation Guidance on Accounting Standard for Fair
Value Measurement for the future. There is no impact on the quarterly consolidated financial statements.
(Additional Information)(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 andsupervisory 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 in accordance with rules for granting trust-based stock compensation to corporate officers as
determined by the eligible 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 theirbook value in the Trust (excluding the amount of ancillary expenses). The book value and number ofshares of such treasury stock was ¥191 million, for 97,170 shares at the end of the previous consolidated
fiscal year, and ¥255 million, for 132,170 shares at the end of the second quarter of the subject
consolidated fiscal year.

- 12 -

(Segment Information)
Ⅰ The first half of the fiscal year ended February 28, 2023 (March 1, 2022 to August 31, 2022)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

8,270

9,788

18,058―18,058

36

419

455

―

455

8,306

10,207

18,514―

18,514

0

61

61

(61)

―

Total

8,306

10,26918,575(61)

18,514

Segment income

370

490

861

(215)

645

Net sales
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Intrasegment net sales
and transfers

Notes:
1. The adjustment amount of minus ¥215 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥265 million and elimination of inter-segment transactions of ¥297 million. Corporate expenses are primarily
general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.
3. “Other revenue” is real estate lease revenue.

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

Ⅱ The first half of the fiscal year ending February 29, 2024 (March 1, 2023 to August 31, 2023)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

7,836

10,804

18,641―

18,641

36

432

469

―

469

7,873

11,237

19,110―19,110

0

59

59

(59)

―

Total

7,873

11,296

19,170(59)

19,110

Segment income

533

777

1,310

(241)

1,069

Net sales
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Intrasegment net sales
and transfers

Notes:
1. The adjustment amount of minus ¥241 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥272 million and elimination of inter-segment transactions of ¥278 million. Corporate expenses are primarily
general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.
3. “Other revenue” is real estate lease revenue.

- 13 -

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

(Matters Related to Revenue Recognition)
Information analyzing the revenue resulting from contracts with customers is presented in “Notes(Segment information)”.
(Important Subsequent Events)
Not applicable- 14 -