YONDOSHI HOLDINGS INC.
First Section, Tokyo Stock Exchange (8008)

The Fifth Medium-Term Management Plan
(The period from the fiscal year ending February 28, 2019 tothe fiscal year ending February 28, 2021)

Challenge and Change
April 9, 2018

Assumptions regarding the Fifth Medium-Term Management Plan:
Changes and Issues relating to the Group’s Operating Environment
Changes in the Group’s operating environment and issues yet to be resolved under thefourth medium-term management plan
Changes in the Group’s operating environment

IssuesShrinking domestic market
Accelerating pace of change inconsumption patterns

Intensifying competition

Growing need to create shared value
Direct link between information gaps andcompetitive advantage

Shift from the consumption of goods to services

Competition for jewelry market share
Shrinking bridal market and intensecompetition
Shrinking department store channel
Growing e-commerce market scale

Accelerated pace of decision-making
Growing information literacy
Need to strengthen product development as well as sales
and promotional measures
Need to establish competitive advantage from each of thebrand value as well as products and services perspectives
Need to increase the number of customers as well as
spending per customer by maintaining brand value
Need to strengthen organizational and operating systems
through market expansion

2

Results under the Fourth Medium-Term Management PlanThree Priority Strategies

Pursue an aggressive store opening
strategy
Develop businesses that will play animportant role in the next set ofgrowth strategies

Steadily carried out
priority measures andachieved a certain levelof results

Expand the scale of business bycontinuing to push forward the Group’s
five growth engine pillars
The five growth engine pillars:① 4ºC Jewelry② 4ºC BRIDAL④ Apparel Manufacturing Business③ canal 4ºC⑤ PALETTE Everyday Fashion Brand Business

3Assumptions regarding the Fifth Medium-Term Management Plan:
Fourth Medium-Term Management Plan Numerical Vision Results
 Ordinary income: ¥7,562 million for fiscal 2017
 ROE: Achieved the numerical target of 10% or more one year in advance⇒ Final ROE: 10.4%

Fourth MediumTermManagement Plan
Revised Numerical
Vision after theEnd of the Second
Year of the FourthMedium-TermManagement Plan

Consolidated
net sales※1
Ordinaryincome※2¥51,000million¥8,250
millionConsolidatedBusiness Results
for the Final
Fiscal Year of the
Fourth MediumTermManagementPlan¥48,000
million¥7,560
millionFourth Medium-Term Management Plan
Numerical Vision Achievement ～ Ordinary Income and ROE
90.0

Ordinary income

ROE

85.0

11.5

¥7.79 billion

80.0¥7.56 billion

75.0
70.0
65.0

12.0

11.0
10.5

¥6.85 billion

10.5％

10.4％

10.0
9.5

9.4％

60.0

9.0

55.0
※1 Consolidated net sales numerical vision revised in linewith the sale of MISUZU Co., Ltd.
50.0
※2 Revised after exceeding the initial ordinary incometarget of ¥8.0 billion or more as of the end of the second
year of the fourth medium-term management plan
※3 Revised after achieving the initial ROE target of 10% ormore one year in advance

8.5

ROE※3

10.9％

10.4％

8.0
Fiscal 2015 (2016/2)

Fiscal 2016 (2017/2)

Fiscal 2017 (2018/2)

First Fiscal Year

Second Fiscal Year

Final Fiscal Year

4

Matters of Pride an Particular Importance as a Leading
Company within Its Industry

 High level of customer service
The ability to approach customers in a meaningful manner and engage in
consulting sales that draw out customer needs Pricing integrity
In principle, the Group does not engage in clearance or discount sales ortransfer products to outlet stores Industry leading quality assurance structure and systems
Implementation of scientific inspections using x-ray inspection devices
complemented by a 100-strong inspection structure

Raise the level of reliability across every facet of theGroup’s activities including customer service, pricing
and quality in a bid to drive the industry forward as aleading domestic jewelry company
5

Fifth Medium-Term Management Plan: Vision
Period of the plan: The three-year period from the fiscal year ending
February 28, 2019 to the fiscal year ending February 28, 2021

Challenge and Change
Enhance the value of the 4ºC brand(Become a century-old company and brand)

6

Fifth Medium-Term Management Plan:
Strategic Approach In order to enhance the value of the 4ºC brand1. Actively reinforce human resources and enhance the quality ofmanagement in the core Jewelry Business2. In addition to bringing about a recovery and growth in existing store
sales, develop and cultivate businesses that will underpin the Group next
growth strategies Group-wide initiatives aimed at achieving the vision
Develop human resources
Strengthen the competitiveness of products

Ascertain market trends
7Basic Policies of the Fifth Medium-Term Management Plan～Business Vision
1Jewelry Business① Bring about a recovery and growth in existing store sales
by improving products, marketing and services② Expand the e-commerce business by strengthening
information technology capabilities③ Rebuild the overseas strategy

2Apparel Business① Strengthen ODM planning and proposal capabilities② Expand the market by opening stores that can secure adominant position in the Kansai area8

Basic Policies of the Fifth Medium-Term Management Plan
～Organizational Vision
1

Strengthen the Group business management function2

Reinforce and promote the development of Group human resources3

Promote diversity management

Plans to add three new directors (excluding members of the Board ofAudit Committee) in a bid to strengthen the Company’s management
and business platforms; introduce two individuals with outside
management experience
Plans to add one new outside director as a member of the Board ofAudit Committee in order to reinforce governance

Ensure that four (one-third) of the Company’s 12 directors are
external appointments
9Basic Policies of the Fifth Medium-Term Management Plan
～ Numerical Vision
Numerical Visions (FY2020)
Consolidated net sales
Ordinary incomeROE¥53.0 billion or more
¥8.35 billion or more
10.0% or more

Progressive Image of Numerical Vision Achievement ― Ordinary Income Outlook
（億円）

（％）

¥8.35…

85.0¥7.65 billion
75.0

65.0

55.0

Final fiscal year of the fourth
Medium-Term Management Plan

Final fiscal year of the fifth
Medium-Term Management Plan

Fiscal 2017 Results

Fiscal 2020 Plan

10The Fifth Medium-Term Management Plan
～ Consolidated Numerical Targets
Net sales(Millions of yen)

Plan
第４次中計

Final fiscal year of thefifth Medium-Term
Management Plan

(Millions of yen)

Net sales
Operating income
Ordinary income
Net income

6,000
60.5
5,293
52.9

7,562
75.6

第68期(2018/2）
Fiscal 2017 実 第71期(2021/2)
Fiscal 2020計績
画Results
Plan
Final fiscal year of the
fourth Medium-Term
Management Plan

Net income

8,350
83.5

6,10261.0

第68期(2018/2）
計画
Fiscal 2017実績 第71期(2021/2)
Fiscal 2020
Final fiscal year of the
fourth Medium-Term
Management Plan

Ordinary income

6,800
68.0

53,00048,060Results

Operating income

Fiscal 2017実績
Fiscal 2020
第68期(2018/2）
第71期(2021/2)
計画

第68期(2018/2）
第71期(2021/2)
Fiscal 2017実績
Fiscal 2020計画

第４次中計

Final fiscal year of thefifth Medium-Term
Management Plan

Results

Final fiscal year of the
fourth Medium-Term
Management Plan

Plan
第４次中計

Results

Final fiscal year of thefifth Medium-Term
Management Plan

Final fiscal year of the
fourth Medium-Term
Management Plan

Plan
第４次中計

Final fiscal year of thefifth Medium-Term
Management Plan

Fiscal 2017 Results
Final fiscal year of the fourthMedium-Term Management Plan

Fiscal 2020 Plan
Final fiscal year of the fifthMedium-Term Management PlanPercentage Increase(%)

48,060
6,102
7,562
5,293

53,000
6,800
8,350
6,000

＋10.0
＋11.4
＋10.4
＋13.4
11

Fifth Medium-Term Management Plan～Key Business Company Measures
1F.D.C. Products GroupWork to return existing 4ºC and 4ºC BRIDAL stores sales to a growthtrajectory as an issue of the utmost priority

2AS’TY Group
Promote efforts aimed at strengthening ODM planning andproposal capabilities as an apparel manufacturing business andwork to secure stable operating income

3age Co., Ltd.
With efforts to expand the everyday fashion business market as akey pillar, work to raise awareness by further entrenching thePALETTE brand’s dominant position in the Kansai area while
endeavoring to increase operating income
12Fifth Medium-Term Management Plan
～Basic Policies of the Jewelry Business (1)Numerical Targets of the Jewelry Business Field(Millions of yen)

Fiscal 2017 Results

Net sales
Operating income
Ordinary income
Net income

Fiscal 2020 Plan

30.98
5.47
5.60
3.75

32.94
5.81
5.93
4.03

 F.D.C. Products Group Business Vision
1Enhance the value of the 4ºC jewelry brand2

Increase the competitiveness of 4ºC bridal jewelry

3

Establish competitive advantage as a 4ºC BRIDAL specialty store

4

Promote stable canal 4ºC growth

Promote stable existing store growth; strengthen the lineup of mid- and high-priced products; enhance
the image of the 4ºC jewelry brand by strengthening sales and promotional activities

Upgrade and expand bridal fairs; consider products and services that generate new added
value
Further strengthen the competitiveness of products; enhance customer service and customer satisfaction;
promote measures aimed at attracting customers and increasing purchases

Secure stable existing store growth by increasing the number of customers; strengthen thecompetitiveness of fashion jewelry products
13Fifth Medium-Term Management Plan
～Basic Policies of the Jewelry Business (2) F.D.C. Products Group (Continued)
5

Strengthen the Luria 4ºC product mix

6

Further expand the e-commerce business

7

Establish a suburban shopping center market model through MAISONJEWELL

Upgrade and expand the product mix by increasing the lineup of bags; rebuild purse/walletand leather accessory merchandising

Strengthen operating systems in an effort to increase the scale of sales to ¥3.0billion
Build a merchandising function; steadily open stores; increase sales per store

8

Rebuild the overseas strategy

9

Establish competitive advantage by strengthening the production as wellas quality assurance structure and systems

Promote test marketing

Rebuild the production management structure and systems
10

Cultivate new markets

Develop new businesses; continue to consider various initiatives including M&As
14

Fifth Medium-Term Management Plan
～Basic Policies of the Apparel BusinessNumerical Targets of the Apparel Business(Millions of yen)

Net sales
Operating income
Ordinary income
Net incomeFiscal 2017 Results

17.08
0.57
0.82
0.53

Fiscal 2020 Plan

20.40
0.87
1.130.73

 Business Vision
AS’TY Group

Bring growth businesses to fruition and continue toundertake investments aimed at promoting stable growthage Co., Ltd.

Expand the everyday fashion PALETTE business

15

About the Distribution of Profits
 While adhering strictly to a policy that is based on continuous dividend
increase, maintain a dividend payout ratio target of 30% or more andwork to increase the level of returns to shareholders
Cash dividends per share(Yen)

75.0
65.0
50.0
40.0Fiscal 2015(2016/2)

Cash dividends per share (Yen)

Fiscal 2016(2017/2)

Fiscal 2017(2018/2)

Fiscal 2018
Fiscal 2019
Fiscal 2020(2019/2) Forecast (2020/2) Forecast (2021/2) Forecast

Fiscal 2017 (2018/2)

Fiscal 2018 (2019/2)

65.0

75.0

Fiscal 2019 (2020/2)

Fiscal 2020 (2021/2)

 Target a dividend of ¥100 per share in the future16

About Capital Efficiency

Net income per share target: ¥200 or moreManagement: Focus on securing ROE of 10%
or moreYONDOSHI HOLDINGS’ policy is to maintain highlevels capital efficiency
Management places the utmost emphasis on the efficiencyof shareholders’ capital
17

Toward Stable and Continuous Growth～Creating Sustainable Value
Work toward enhancing value in the three jewelry SPA, apparel ODM, andretail businesses
VisionInputsBusinesses

Outputs

Customers

Jewelry SPA

Customers

Employees

Employees

Manufacturers

Manufacturers

Partnercompanies

Apparel OEM

RetailPartnercompanies
SocietySocietyEnhanced corporate value;
increased customer satisfaction

A century-old company and brandShareholders

Shareholders

Outcomes

Management and business platforms
The environment, society, and governance (ESG)18

Activities Aimed at Addressing ESG Issues (1) About F.D.C. Products Inc.
Affiliation with the Responsible Jewellery Council (RJC)
 Only three Japanese companies (including F.D.C. Products Inc.) wereaffiliated with the Council as of April 30, 2018
 Every effort is made to promote responsible business practices while
engaging in activities that help realize a sustainable society and business
operations
 Work toward further enhancing value by clarifying the integrity of theF.D.C. Products brand※What is the RJC・・・
The Responsible Jewellery Council is an international not-for-profit, standards and certification
organization. Covering social and environmental responsibility focusing on the jewelry industry,
the Council strives to realize responsible business practices for diamonds, gold and platinum acrossthe entire jewelry supply chain and processes from mine to retail.
19

Activities Aimed at Addressing ESG Issues (2) Reinforce personnel and promote human resource
development across the Group as a whole Develop next-generation leaders Engage in Group-wide cross-sectional human resource education,
assignment, and hiring activities Continue to engage in promote awareness toward the Group’s corporate
university, which engages in education focusing on values and traditions

 Promote diversity management
 Promote workstyle reform (work-life balance) Promote opportunities that allow women to excel

 Quality assurance
 Further upgrade and expand the Group’s industry leading quality
assurance structure and systems
 Enhance the integrity of products and services
20

We kindly request that you direct all inquiries regarding this document and investor relations
in general to the following point of contact:

YONDOSHI HOLDINGS INC.
Corporate Planning Division (Kozuka)
TEL+81-3-5719-3429
FAX+81-3-5719-4462
E-mail ir-yondoshi@yondoshi.co.jp

Disclaimer: Forecasts and forward-looking statements are based on a wide range of assumptions.
YONDOSHI HOLDINSG INC. takes no responsibility for the accuracy of the information contained inthis document and does not guarantee its validity or outcome. Readers are asked to use this information
with the understanding that actual results may differ materially from estimates and forecasts.