CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 29, 2016
(March 1, 2015 to May 31, 2015)
July 6, 2015
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code
number 8008.
Representative:
Inquiries:

Hidenori Suzuki, President and Representative Director
Masahiko Iwamori, Executive Director and Executive Officer responsible forOperations
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): July 15, 2015
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): —(Millions of yen rounded down)

1. Consolidated Operating Results for the First Quarter of Fiscal 2015
(March 1, 2014 to May 31, 2014)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)Net sales
Operating Income
Ordinary Income
Net Income％

Millions of yen

Millions of yen％

Millions of yen％

Millions of yen％

1Q FY2015

12,306

(2.9)

1,348

(13.6)

1,685

(9.2)

1,213

2.5

1Q FY2014

12,672

9.1

1,560

42.9

1,856

44.1

1,184

43.2

Note: Comprehensive income 1Q FY2015: 1,626 million yen (34.2%) 1Q FY2014: 1,211 million yen (9.1%)
Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

1Q FY2015

45.63

45.53

1Q FY2014

43.39

43.30

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

47,22676.2

1,767.63

60,99045,830February 28, 2015
(Reference)
Shareholders’ equity: May 31, 2015: 47,174 million yen
February 28, 2015: 45,787 million yen

75.1

1,722,67

Total Assets

Net Assets

Millions of yen

May 31, 2015

Millions of yen

61,881

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2014
Fiscal 2015
Fiscal 2016
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

16.00

—

16.00

32.00

20.00

—

20.00

40.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 29, 2016: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 29, 2016
(March 1, 2015 to February 29, 2016)(% figures for the full fiscal year represent year-on-year increase or decrease)
Net Income
Operating Income
Ordinary Income
Net Income
per Share

Net Sales
Millions of yen

Interim period
Fiscal year
endingFebruary 29,
2016%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

24,0000.8

2,000 (11.5)

2,300 (10.1)

1,300

15.7

48.86

52,500

3.5

5,800

6,700

4,100

12.6

154.10

6.1

7.8

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 29,
2016: No

Notes
(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No
New: —
Excluded: —(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No
Note: For more detailed information, please see the section “2. Summary Information (Notes)(3) Changes in accounting policies, changes in accounting estimates, and restatements” onpage 5.
(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
May 31, 2015: 29,331,356 sharesFeb. 28, 2015: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2015: 2,643,223 sharesFeb. 28, 2015: 2,752,078 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)First quarter fiscal 2015: 26,605,585 shares First quarter fiscal 2014: 27,309,949 shares
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the first quarter of fiscal 2015 is not subject to the quarterly review procedures
stipulated in the Financial Instruments and Exchange Act of Japan. As of the date of disclosure of thisreport, the review procedures for the quarterly financial statements under the Financial Instruments andExchange Act had not been completed.
Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
The forecasts of operating results and other items concerning the future contained in this document are
based on management’s assumptions and beliefs that are determined to be reasonable in light of currently
available information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety of factors
actual results may differ materially from forecasts. For the assumptions that underpin operating results
forecasts as well as cautionary notes on the use of operating results forecasts, please refer to “1. Qualitative
Information on Business and Financial Results (3) Explanation of Consolidated Results Forecasts andOther Future Predictions” on page 5.

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Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

4(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

4

Summary Information (Notes)

5(1)Changes in Important Subsidiaries During the Period

5(2)Application of Special Accounting Practices in the Preparation of the Quarterly

5

Consolidated Financial Statements

3.

(3)

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

5(4)Additional Information

5

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income

First Quarter Cumulative

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

8
9

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

10(Segment Information)

10

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first quarter period of the fiscal year ending February 2016 (March 1, 2015 to May 31, 2015),
despite signs of recovery in the Japanese economy, including a steady rise in stock prices, higher earnings
at certain companies, and improvement in employment conditions, the turbid conditions continued withdecline in real wages, and prolonged sluggishness in consumer spending.
In the retail industry, business conditions remained harsh, with a continued slump in consumer
spending amid a persistent trend toward frugality that followed the consumption tax rate hike in April
2014.
Under these circumstances, during the fiscal year ending February 2016, the initial year of fourth
medium-term management plan, the YONDOSHI HOLDINGS Group will nurture human resources,
bolster product capabilities, and assess market trends, with the aim of becoming a century-old company
and brand. Further, we will practice CSR-based management to establish a highly trusted corporate group,and endeavor to enhance corporate value by strengthening internal controls, providing shareholder returns,
and making medium to long-term investments linked to earnings growth.
As a result, although net sales and earnings were in line with plan, totals declined from the same
period of the previous fiscal year, due to the demand rush that preceded the consumption tax hike in April
2014. For the first quarter of the subject fiscal year, net sales amounted to ¥12,306 million (down 2.9%
YoY), with operating income of ¥1,348 million (down 13.6%), ordinary income of ¥1,685 million (down
9.2%), and net income of ¥1,213 million (up 2.5%).
Operating results by business segment were as follows.
YONDOSHI HOLDINGS has revised its business segment classifications from the first quarter of thesubject fiscal year (ending February 2016). The former “F.D.C. Products Group” has been changed to“Jewelry Business,” and “The AS’TY Group,” “MISUZU,” and “age” consolidated as “ApparelBusiness.”
Jewelry BusinessAt the F.D.C. Products Group, sales at mainstay 4°C brand jewelry stores rose steadily as a result of
successful measures including renovation of existing locations, and expansion in the range of items. Sales
exceeded plan at 4°C BRIDAL stores on expanded sales promotions, and at canal 4°C stores from an
ongoing effort for proactive opening of new store locations. Sales also exceeded plan at Luria 4°C,
handling purses and other small leather goods.
As a result, net sales in the Jewelry Business segment reached a new record high, amounting to¥6,827 million (up 1.1% YoY), with operating income of ¥1,282 million (down 6.7%).
Apparel Business
The AS’TY Group shifted production to Bangladesh in line with its business plan. MISUZU Co., Ltd.
made efforts to spur sales at existing stores by strengthening individual products and promotional
activities. age Co., Ltd. worked to expand new store openings for its mainstay everyday fashion brand
PALETTE.
As a result, net sales in the Apparel Business segment amounted to ¥5,479 million (down 7.4% YoY),
with operating income of ¥79 million (down 58.8%).
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2015) amounted to ¥61,881 million, an
increase of ¥890 million from the end of the previous fiscal year (February 28, 2015). This was due
mainly to increases of ¥958 million in notes and accounts receivable―trade; and ¥891 million inmerchandise and finished goods; against a decrease of ¥1,000 million in short-term investment securities.
Total liabilities amounted to ¥14,654 million, a decrease of ¥55 million from the end of the previous
fiscal year. This was due mainly to a decrease of ¥1,067 million in income taxes payable; against an
increase of ¥658 million in notes and accounts payable—trade.
Total net assets at the end of the subject period amounted to ¥47,226 million, an increase of ¥1,396
million from the end of the previous fiscal year.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 13, 2015.

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2. Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period
Not applicable(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
Changes in accounting policies(Application of the accounting standard for retirement benefits)
We have adopted the Accounting Standard for Retirement Benefits (ASBJ Statement No.26 issued on
May 17, 2012; hereinafter, the “Accounting Standard for Retirement Benefits”) and the Guidance on
Accounting Standard for Retirement Benefits (ASBJ Guidance No.25 issued on May 17, 2012; hereinafter,
the “Guidance on Accounting Standard for Retirement Benefits”) in accordance with the provisions ofArticle 35 of the Accounting Standard for Retirement Benefits and those of Article 67 of the Guidance on
Accounting Standard for Retirement Benefits starting from the first quarter under review. We reviewed
the calculation methods of retirement benefit obligations and service costs, and changed the method of
attributing all contributions over all periods to periods of service based on the benefit formula instead ofon a straight-line basis, as well as the method of determining a discount rate from the use of a discountrate based on the number of years similar to that of the average remaining service period of employees tothe use of a single weighted average discount rate that reflects the estimated payment period of retirement
benefits and the amount per that period.
We adopt these accounting standard and guidance in accordance with the transitional treatment
specified in Article 37 of the Accounting Standard for Retirement Benefits. Amounts occurred due to suchchanges in calculation methods are recognized by adding to or deducting from retained earnings at the
beginning of the first quarter under review.
As a result, net defined benefit asset at the beginning of the subject first quarter period increased¥8,991 thousand, net defined benefit liability decreased ¥28,409 thousand, and retained earnings
increased ¥24,928 thousand. The effect of this change on the Company’s consolidated profit and loss inthe subject first quarter period is negligible.
(Application of Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees
etc. through Trusts)
The “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts” (ASBJ PITF No. 30, December 25, 2013) was applied effective the first quarter of fiscal
2015, however, trust agreements concluded prior to March 1, 2015 have been accounted for using thesame method as before. There was no impact on the Company’s consolidated profit and loss in the subject
first quarter period.
(4) Additional Information(Change in Presentation Method)
Through the previous fiscal year, the sum total of “net sales” and “other operating revenue” was presented
as “operating revenues.” However, because of a decline in the materiality of “other operating revenue”
with regard to consolidated results, from the first quarter of the subject fiscal year, this item is presented
included in “net sales.”Consolidated financial statements for the previous fiscal year have been recombined to reflect thischange in the presentation method. As a result, the ¥209,809 million presented as “other operating
revenue” in the Consolidated Statements of Income for the first quarter of the previous fiscal year has
been recombined as “net sales.”-5-3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the First Quarter ofFebruary 28, 2015

the Fiscal Year Ending(As of February 28, 2015)

February 29, 2016
(As of May 31, 2015)

ASSETS
Current assets:
Cash and deposits

1,952,933

1,591,207

Notes and accounts receivable ― trade

3,451,619

4,410,058

Short-term investment securities

2,000,000

1,000,000

Merchandise and finished goods

7,383,018

8,274,999

Work in process

871,733

445,934

Raw materials and supplies

723,203

800,695

Other current assets

928,872

915,963

Allowance for doubtful accounts(7,625)(10,563)

17,303,755

17,428,296

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

5,546,145

5,535,169

Land

5,528,465

5,528,465

Other, net

1,428,388

1,456,264

Total property, plant and equipment

12,502,999

12,519,899

5,709,806

5,585,679

Intangible assets:
Goodwill
Other intangible assets

565,366

517,113

Total intangible assets

6,275,172

6,102,793

Investment securities

20,025,792

20,805,540

Prepaid pension cost

614,916

630,864

4,384,391

4,509,395

Investments and other assets:

Other
Allowance for doubtful accounts(116,688)(115,547)

Total investments and other assets

24,908,410

25,830,253

Total noncurrent assets
Total assets-6-

43,686,583

44,452,946

60,990,338

61,881,242

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

End of the First Quarter ofFebruary 28, 2015

the Fiscal Year Ending(As of February 28, 2015)

February 29, 2016
(As of May 31, 2015)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade4,170,142

4,828,925

Short-term loans payable

48,310―

Income taxes payable

1,399,367

331,515

Provision for bonuses

355,684

351,282

Provision for directors' bonuses

41,946

16,249Other

4,371,894

4,283,546

Total current liabilities

10,387,344

9,811,519
391,854

Noncurrent liabilities:
Provision for directors' retirement benefits

385,296

Net defined benefit liability

614,881590,353

Asset retirement obligations

1,002,570

1,025,639

Other

2,769,597

2,835,115

Total noncurrent liabilities

4,772,345

4,842,962

15,159,689

14,654,482

Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,226,705

18,224,031

Retained earnings

27,049,761

27,846,932

Treasury stock(3,284,842)(3,179,601)

Total shareholders’ equity

44,478,145

45,377,883

1,481,751

1,892,257

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

13,33913,287(233,476)(158,063)

Foreign currency translation adjustments

85,05485,882Remeasurements of defined benefit plans(37,476)(36,539)

Total other accumulated comprehensive income

1,309,192

1,796,824

43,31152,052

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

45,830,648

47,226,760

60,990,338

61,881,242

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

Fiscal Year Ended

Fiscal Year Ending

February 28, 2015

February 29, 2016

(March 1, 2014 to(March 1, 2015 to

May 31, 2014)

May 31, 2015)

Net sales

12,672,555

12,306,453

Cost of Sales

5,509,648

5,222,598

Gross profit

7,162,907

7,083,855

Selling, general and administrative expenses

5,602,815

5,735,469

Operating income

1,560,091

1,348,385

Non-operating income
Interest income

2,759

4,809

Dividends received
Equity in earnings of affiliates

5,244

5,501

224,122

283,161

Rent of real estate for investment

25,48525,485

Foreign exchange gains

3,763

5,289

Other

38,35718,189Total non-operating income

299,731

342,436

Non-operating expenses
Interest expenses
Depreciation of real estate for investment
Management cost for real estate for investment
Other
Total non-operating expenses

381

145

1,492

1,470

511

511

1,098

3,240

3,484

5,368

1,856,339

1,685,454

Gain on sales of noncurrent assets

47,797

Total extraordinary income

47,797――

Impairment loss

19,331

13,219Total extraordinary losses

19,331

13,219Net income before income taxes

1,884,805

1,672,234

Income taxes ― current

500,099382,608

Income taxes ― deferred

199,833

75,707

Total income taxes

699,932

458,315

Income before minority interests

1,184,872

1,213,919

Net income

1,184,872

1,213,919

Ordinary income
Extraordinary income

Extraordinary loss

-8-

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

Income before minority interests

First Quarter of theFirst Quarter of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2015

February 29, 2016

(March 1, 2014 to(March 1, 2015 to

May 31, 2014)

May 31, 2015)

1,184,872

1,213,919(14,794)375,521

4,331

(137)

Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments(4,676)828

Remeasurements of defined benefit plans―

936

42,21135,07027,071
1,211,944

412,219
1,626,138

1,211,944

1,626,138――

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 minority interests-9-(3) Notes to Quarterly Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 28, 2015 (March 1, 2014 to May 31, 2014)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

6,755,033

5,917,521

12,672,555―

12,672,555

11,016

179,305

190,322(190,322)

―

Total

6,766,050

6,096,827

12,862,878(190,322)

12,672,555

Segment income

1,375,522

193,866

1,569,389(9,297)

1,560,091

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥9,297 thousand for segment income mainly includes corporate expenses that are notallocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

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 quarter of the fiscal year ending February 29, 2016 (March 1, 2015 to May 31, 2015)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

6,827,320

5,479,133

12,306,453―

12,306,453

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

―

Total

6,839,298

5,701,455

12,540,754(234,300)

12,306,453

Segment income

1,282,901

79,953

1,362,835(14,468)

1,348,385

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥14,468 thousand for segment income or loss mainly includes corporate expenses thatare not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income or loss figures have been adjusted to operating income on the consolidated quarterly income
statements.

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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.

3. Information concerning changes to reporting segments, etc.
The YONDOSHI HOLDINGS Group had previously classified its reporting segments as “F.D.C.
Products Group,” “AS’TY Group,” “MISUZU,” and “age,” based on the respective businesscompanies. In recent years, the brand SPA (Specialty store retailer of Private label Apparel)business centered on 4°C brand jewelry has come to comprise a larger proportion of the corporategroup, and with the idea of evolving into a company closer to customers, from the subject fiscal
year we have changed the classifications to two segments, the “Jewelry Business” and “ApparelBusiness,” based on principle products handled.
Accordingly, the former “F.D.C. Products Group” has been changed to “Jewelry Business,” and“The AS’TY Group,” “MISUZU,” and “age” consolidated as “Apparel Business.”- 11 -