YONDOSHI HOLDINGS INC.
Prime Market, Tokyo Stock Exchange (8008)

Investors’ Presentation
Results for the First Half of Fiscal 2023
(The Fiscal Year Ending February 29, 2024)

October 6, 2023

Contents
Ⅰ．Consolidated Operating Results for the First Half of Fiscal 2023
Ⅱ．Consolidated Business Results Forecasts for Fiscal 2023

Ⅲ．Realization of Sustainable Management
Ⅳ. Appendix
Hidetoshi Masuda. President and Representative Director
YONDOSHI HOLDINGS INC.
Note: Amounts identified in this report are presented in millions of yen rounded down. Percentage figures are calculated from raw data.

Disclaimer: Operating forecasts and forward-looking statements that are not of historic fact are based on information available
to management as of the date of this report. Subject to a variety of risks and uncertainties, these forecasts and forward-looking
statements may differ substantially from actual results due to a diversity of factors including changes in the Company’soperating environment, market trends and fluctuations in foreign currency exchange rates. As a result, readers are advised notto rely solely on the information provided as the basis for investment decisions.

1ContentsⅠ．Consolidated Operating Results for the First Half of Fiscal 2023
Ⅱ．Consolidated Business Results Forecasts for Fiscal 2023

Ⅲ．Realization of Sustainable Management
Ⅳ. Appendix2

Results Summary Two consecutive years of sales increases, and profit growth.
 Earnings improvement exceeded plan, and first half forecast revised
upward on 9/25.
➢ Net sales: Up 3.2% YoYExpansion of store openings in the Apparel Business➢ Operating income: Up 65.7% YoY
Structural reform in the Jewelry Business, profit expansion of apparel
manufacturers➢ Ordinary income: Up 56.2% YoY➢ Profit attributable to owners of parent: Up 35.7% YoY3Consolidated Operating Results forthe First Half of Fiscal 2023
(Millions of yen, %)Actual Results

Increase(Decrease)

YoY

Net sales

19,110＋3.2＋596

Gross profit

9,373＋2.3＋211

Gross profit margin49.0-(0.4)

Selling, general and administrative
expenses

8,303－2.5(212)

Amortization of goodwill

248±0.0±0

Operating income

1,069＋65.7＋423

Ordinary income

1,284＋56.2＋462

696＋35.7＋183

1,317＋47.4＋423

944＋24.1＋183

Net income
Reference figures

Operating income before theamortization of goodwill
Net income before theamortization of goodwill* Operating income before the amortization of goodwill = operating income + goodwill amortization;
net income before the amortization of goodwill = profit attributable to owners of parent + goodwill amortization

4

FY2/24 1H Results by Segment (Figures before internal offsetting)Jewelry BusinessNet sales of ¥7,873 million with operating income of ¥533 million, for revenue
decline with earnings gain.
 Fashion jewelry: Sales growth at existing stores from implementation of priority
measures.
➢ Sales to female customers up 3.0% YoY on successful product measures.
➢ E-commerce sales up 19.1% YoY on continued strong performance throughboth the in-house website and external websites.
➢ Sales per customer up 6.3% YoY on greater accuracy of customer management.
 Bridal jewelry: Sales declined due to consolidation of stores, but the profit margin
improved significantly.
➢ Number of marriages in Jan.-June period decreased by 7.3%, as street-level
stores struggled to attract customers.
➢ Reorganization of specialty (bridal) store business format – Going forward,
absorption into nearby department stores, mixed-use stores, flagship stores.
Actual Results(Millions of yen, %)Jewelry Business

YoY

Increase (Decrease)

Net sales

7,873－5.2(433)

Operatingincome533＋44.0＋1625

FY2/24 1H Results by Segment (Figures before internal offsetting)Apparel BusinessNet sales of ¥11,237 million with operating income of ¥777 million, for gains inboth revenue and earnings.
 Openings of PALETTE stores drove top line growth.
➢ Increased sales on boost from store openings in the second half of FY2/23.
➢ Steady overall performance for the four stores in the Kanto region.
 Apparel manufacturers posted significantly increases in both sales and profit.
➢ Increase in orders from strengthening of overseas production bases.
➢ Improvement in gross margin percentage on price pass-through to reflect
yen depreciation and other cost increases.

Actual Results(Millions of yen, %)ApparelBusiness

YoY

Increase (Decrease)

Net sales

11,237＋10.1＋1,027

Operatingincome

777

+58.4

+286
6

Status and Plan of the Number of Domestic
Brand Stores in the Jewelry Business First half: 6 store openings, 7 store closures, for 159 stores at period-end.
 Second half plan: 2 store openings, 0 store closures, for 161 stores atperiod-end.
4ºC
BRIDAL

4ºC
FY2022(2023/2)

FY2023
1H ActualResults

EAU DOUCE
4ºC

Canal4ºCTotal

Fiscal yearend

80

24

43

13160

Storesopened31026Storesclosed15107

2H-end82

204215159

Storesopened1

1002

Storesclosed00000

Fiscal yearend

83214215161(2023/8)

FY20232H Plan(2024/2)* Composite stores that handle multiple brands are recorded as a single store by each individual brand7

Status and Plan of Store Openings and Closures First half: 3 store openings, 8 store closures, for 239 stores at period-end.
 Second half plan: 11 store openings, 1 store closure, for 249 stores atperiod-end.
ApparelBusiness

Jewelry Business
Roadsidebutique

FY2022(2023/2)

FY2023
1H Actual
Results(2023/8)

FY2023 2HPlan(2024/2)

Department
store

Bridal Shop

Total

Fashion
Building

Total

PALETTE

Fiscalyearend

269

2456

151

93

244

Storesopened1010213Storesclosed10517182Hend

2692055

14693239Stores
opened01

102

911Stores
closed0000011

Fiscalyearend2702155

1481012498

Overview of Financial Position and Cash Flows(Consolidated) Total assets ¥52.4 billion, liabilities ¥13.8 billion, net assets ¥38.5 billion
 Cash flows from operating activities: ¥1,356 million due to recording ofincome before income taxes, etc.
 Cash flows from investing activities: net cash used in investing activities of¥2,340 million owing to such factors as the purchase of investment securities
Financial Position

Cash Flows
As of August 31, 2023

Total liabilities¥13.8 billion

Total assets¥38.5 billion

Total net assets¥52.4 billion(Millions of yen)

1H FY2022 1H FY2023 Increase(2022/8)(Decrease)(2023/8)

Operatingcash flows

1,282

1,356+74

Investingcash flows(2,234)(2,340)(106)

Financing
cash flows

383

1,197+814

Freecash flows

(951)

(984)

(32)
9

Contents
Ⅰ．Consolidated Operating Results for the First Half of Fiscal 2023
Ⅱ．Consolidated Business Results Forecasts for Fiscal 2023

Ⅲ．Realization of Sustainable Management
Ⅳ. Appendix

10FY2/24 Consolidated Earnings Forecast Summary
 Continue priority measures to achieve the second half plan.
 Full-year forecasts are unchanged.
Jewelry Business➢ In addition to the steady progress of priority measures for fashion jewelry,sales to male customers and EC sales are expanding, with expectations for
the Christmas sales season.
➢ Some existing bridal jewelry stores continue to struggle, but this wasexpected.
➢ New brand promotion campaign conducted in September with the aim ofenhancing brand value over the medium to long term.
Apparel Business➢ Plan to open nine PALETTE stores during the second half period, continue
to open 10 stores per year.
➢ Leverage the production base in Bangladesh to gain advantages in terms ofquality and cost.
11Consolidated Business Results Forecasts for Fiscal 2023
(Millions of yen, %)FY2022 (2023/2)

FY2023 (2024/2)

Results

Forecasts

Increase(Decrease)

YoY

Net sales

39,50840,000+1.2＋491

Gross profit

19,727

19,990+1.3＋262

Gross profit margin49.9

50.0-+0.0

Selling, general andadministrative expenses

17,74817,890+0.8＋141496

496±0.0±0Operating income

1,979

2,100+6.1+120

Ordinary income

2,342

2,500+6.7+157

Net income

1,149

1,300+13.1+150

2,476

2,596+4.9＋120

1,645

1,796+9.1＋150

Amortization of goodwill

Reference figures

Operating income before theamortization of goodwill
Net income before theamortization of goodwill* Operating income before the amortization of goodwill = operating income + goodwill amortization;
net income before the amortization of goodwill = profit attributable to owners of parent + goodwill amortization

12

Consolidated Business Results Forecasts by Segment
for Fiscal 2023 (Figures are after accounting for intrasegment net sales and transfers)
Jewelry BusinessNet sales of ¥17,700 million, with operating income of ¥1,450 million.
 Revenue decline expected due to consolidation of bridal stores, but improved profit margin toprovide higher earnings.
 Expand sales by focusing on growth segments of female customers, e-commerce, and customerdevelopment.

Apparel BusinessNet sales of ¥22,300 million, with operating income of ¥1,050 million.
 Expanded openings of PALETTE stores to drive top line growth.
 Apparel manufacturers to improve profit margins by strengthening overseas production
functions and planning proposal capabilities.

(Millions of yen, %)FY2022 (2023/2)

FY2023 (2024/2)

Results

Forecasts

YoYIncrease(Decrease)

Jewelry
Business

Net sales

18,587

17,700－4.8(887)

Operatingincome1,356

1,450+6.9+93

ApparelBusinessNet sales

20,921

22,300+6.6+1,378

Operatingincome942

1,050+11.4+10713

FY2/24 Priority Measures
Business

Jewelry BusinessApparel BusinessChanges in
the operating
environment➢ Decline in the number of marriages➢ Emergence of foreign brand➢ Expansion of the e-commercemarket➢ Evolution of digital marketing➢ Greater tendency to economize due
to inflation➢ Exchange rate fluctuations➢ Rising production cost
➢ Population decline in regional areas

Phase

Structural ReformExpansion

1)
Priority
Measures

ResultExpand sales of fashion jewelry
and enhance brand value
・Broadening of support amongfemale customers
・Expansion of e-commerce
・Customer development
2) Structural reform of the bridal
jewelry business

Earnings improvement

1) Increase sales at PALETTE
・Expand sales through strategy ofdomination in Kansai region
・Expansion of business area by
opening stores in the Kanto region2) Strengthen the production base in
Bangladesh; strengthen planningand proposal capabilities

Sales expansion
14

Priority Measure Expand Sales of Fashion Jewelry
 Steady results in various measures for fashion jewelry Proactively pursue measures during the second half to expand earnings in
growth fields.
Attract female customers

Expand e-commerce

Customer development

1H: +3.0%

1H: +19.1%

1H: +6.3%➢ Strengthen
development of newproducts➢ Expand productlineup to meet
personal demand➢ Debut of direct-toconsumer (D2C) brandin November➢ Development ofproducts exclusively fore-commerce➢ Strengthen directmarketing➢ Improve data analysis➢ Aiming to reach morethan one million
registered customers

15Outlook for Christmas Season
 Christmas sales season expected to be on a par with the previous year.
 Continue to strengthen product development for female customers, who are the endusers.
 Clear recovery trend in sales to male customers both at stores and through ecommerce, which is a positive factor for Christmas.
Christmas Collection

Sales to Male Customers (including e-commerce)(Millions of yen)

360
340

Mar.-Aug.
Sales up 3.8% YoY(Stores +1.5%, EC +19.7%)

320
300
280
260
240
220
200
Mar.

Apr.
May
2022

Jun.
2023

Jul.

Aug.
16

Brand Value Improvement – Brand Promotion
 “Nameless Jewelry Shop” event held in September 2023.
 Experience-based events held to refresh brand image and enhancefavorability.

17Brand Value Improvement – Ginza Main Store Renovated and reopened as a flagship store on March 1, conveying theviewpoint of 4℃.
 Implement new ideas, and convey the brand value to customers.

18

Increase Sales at PALETTE
 Continue strategy of dominate store openings in Kansai region.
 Steady expansion to achieve ¥20 billion in net sales.
 Continue opening stores in the Kanto region, aiming to boost the top line by
expanding the business area.
Trends in PALETTE Sales, Operating Margin, and the Number of Stores(Millions of yen, %)20,000

6.0

5.0

5.0

4.1
3.3
Operating margin

2.2

3.6

11,8153.9

4.0

14,30012,656

3.0

10,660

9,414

2.0
1.0

Sales0.0

Numberof stores

FY2/20FY2/21

FY2/22

FY2/23

FY2/24 (Plan)

FY2/27 (Plan)

73

80

86

93101

135

19

Shareholder Returns Policy, Cash Dividends
 Work to raise the level of shareholder returns through the payment of stableand continuous cash dividends
 Shareholder return target: Dividend on equity (DOE) ratio of 4% or more Work to realize a future annual cash dividend of ¥100 per common share➢ Interim and period-end cash dividends for the fiscal year ending
February 29, 2024 remain unchanged at ¥41.50 per common share➢ DOE projected to come in at 4.7% on an annual cash dividend of ¥83 percommon share
DOE (Dividend on Equity)

(%)

4.8
4.7
4.6
4.5
4.4
4.3
4.2
4.1

(Yen, %)

Annual dividends per share
DOE
Payout ratio
Actual dividend payout ratio *4.7
4.5
4.4

4.4

4.3

4.3

FY2/19FY2/20FY2018(2019/2)

75
4.3
78.1
64.9

FY2/21FY2019(2020/2)

80
4.5
71.3
59.4

FY2/22

FY2020(2021/2)

81
4.4
108.0
82.7

FY2/23

FY2021(2022/2)

83
4.3
119.3
89.5

FY2/24 (Forecast)

FY2022(2023/2)

83
4.4
154.8
108.2

FY2023(2024/2)
Forecast83
4.7
136.9
99.1

* Actual dividend payout ratio: Total annual dividends / Net income before amortization of goodwill

20

Contents
Ⅰ．Consolidated Operating Results for the First Half of Fiscal 2023
Ⅱ．Consolidated Business Results Forecasts for Fiscal 2023

Ⅲ．Realization of Sustainable Management
Ⅳ. Appendix

21

Assumptions of the 7th Medium-Term Management Plan

Building a foundation for regrowth by solving management issues

Business

Main Themes

Aim of Measures

Enhancing BrandValue・Continue to invest from a mediumto long-term perspective・Create flagship stores

Sales Channel
Strategy・Strengthen merchandising for thedepartment store channel
・Expand the e-commerce channel

Market Expansion

・Expansion in the Kanto region
・Strengthen planning and proposal
capabilities

Jewelry BusinessApparel Business22

Measures to Enhance Corporate Value
Cash Allocation

Business
GrowthOperatingCash Flow

StructuralReform

Strengthen capacity to generatecash flow
・ Maximize the top line throughproactive investment in strategic
fields・ Structural reforms to enhance
profitability

Shareholder
Returns
Maintaining
Financial
Condition

Strategic
Investments• Stable dividend (DOE target of 4%or higher)• Flexible share buybacks• Effective use of group funds• Securing capacity for debt
procurement• Business investment(Brand, store openings, DX etc.)• Human resources investment

Sustainable growth

Lower capital costs

・Flexible response to changes in thebusiness environment
・Stable shareholder returns(Dialogue to enhance value）
・Promotion of dialogue: IR(Disclosure based on dialogue)
・Strengthen corporate governance23Realization of Sustainable Management

Putting into practice the basic principles of “Respect forPeople” and “Social Contribution”

Human Resource Development
・Increase training hours per person per year.
・Expand annual education and training
expenditure per person.

Engagement
・Boost employee engagement.

Diversity

Health and Safety

・Increase the ratio of female managers.
・Increase the rate of employees taking childcare leave.
・Maintain the employment rate of persons withdisabilities.

・Reduce average monthly overtime hours.
・Increase average number of days of paid leave taken.
・Improve the average paid leave utilization rate.

Pursue initiatives to maximize the use of human resources, achieve sustainablegrowth by strengthening the management base, and enhance corporate value
over the medium to long term.
24

Contents
Ⅰ．Consolidated Operating Results for the First Half of Fiscal 2023
Ⅱ．Consolidated Business Results Forecasts for Fiscal 2023

Ⅲ．Realization of Sustainable Management
Ⅳ. Appendix

25

1. Jewelry Market Trends
In 2022, the scale of the retail market for jewelry in Japan was ¥1,022.7 billion, an increase of 6.3%
year on year.

◆ Market recovery reached 1 trillion yen for the first time in 14 years, since 2008.
◆ Rising stock prices and real estate values have shielded the wealthy from financial harm, and consumption hasincreased with the relaxation of covid-19 measures. This has lifted the jewelry market even beyond pre-pandemic
levels.

In 2023, the retail market for jewelry in Japan is projected to expand further, increasing 1.9% year on
year to ¥1,042.3 billion.

◆ Liberated from three years of self-restraint, people have begun to go out more, the number of customers forcommercial property tenants has increased, leading naturally to a rise in sales. In addition, rapid growth in demand
from inbound tourism is expected.

(Billions of yen)Transition and forecast of jewelry retail market size

1,100

1,000

900

YoY
101.1％

106.3％
103.0％

99.6％

972.6 969.1

97.1％

100..6％117.4％

101.0％

941.3 946.8 956.7

985.1

962.4

101.9％

1,042.3
1,022.7

83.2％
800

819.5

700

600
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

(Forecast)

Source: Summary of the “Jewelry Market in Japan: Key Research Findings 2023” posted on the Institute’s homepage.

26

2. Net Sales by Business (Consolidated)
1H FY 2022 (2022/8)

1H FY 2023 (2023/8)(Millions of yen, %)Actualresults

Jewelry business(*1)

Apparel business(*1)(The AS’TYGroup)

Share(%)

YoY(%)

Actualresults

Share(%)

YoY(%)

8,306

44.9＋4.7

7,873

41.2

－5.2

10,207

55.1＋3.4

11,237

58.8

+10.1

4,937

44.8

＋5.3

5,449

44.8

+10.4

6,091

55.2

＋2.5

6,716

55.2

+10.3

18,514

100.0

＋4.0

19,110

100.0

+3.2

(*2)

(age)
(*2)

Total

(*1. Sales to external customers)(*2. Figures before internal offset; Apparel Business composition ratio calculated as simple sum total)27

3. Overview of Capital Investment as well as
Depreciation and Amortization (Consolidated)
1H FY 2022
(2022/8)

1H FY 2023 (2023/8)(Reference)
FY 2022(2023/2)

Amount(Millions of yen)Amount(Millions of yen)

Capitalinvestment

330

396

120.0

559

Depreciation
andamortization

207

163

78.4

396

Capitalinvestment

158

138

87.3

394

Depreciation
andamortization

172

171

99.4

352

YoY (%)

Amount(Millions of yen)Jewelry BusinessApparel Business28

4. Jewelry Business: Sales by Brand and Product(Millions of yen, %)FY 2021(2022/2)
Actual results

4ºC Total *FY 2022
(2023/2)
Actual results

YoY (%)

1H FY 2023 (2023/8)
Actual results

YoY (%)YoY (%)

12,088－11.3

11,871－1.8

4,796－11.2(4ºC Jewelry)(8,906)－(9,217)－(3,978)-(4ºC BRIDAL specialty store)(3,182)－(2,654)

－

(817)

-

Canal4ºC

3,313－5.4

3,373+1.8

1,414－5.8

EAU DOUCE4ºC

365＋5.5

409

+12.1

168－7.5

Other brands----2-EC Business

2,003＋1.3

2,242+11.9

1,005+19.1

Overseas・Advance
Sales・Other652－27.9615－5.7

485+30.8

Total

18,424－10.4

18,514+0.5

7,873－5.2* 4ºC Total is the sum total of 4ºC Jewelry and 4ºC Bridal specialty stores.

29

5. Jewelry Business: Number of Existing Store Customers andAverage Spending per Customer by Brand and Product

1H FY 2022 (2022/8)
Existing stores YoY(%)
Number ofcustomers

Averagespending percustomer

1H FY 2023 (2023/8)
Number ofcustomers

Averagespending percustomer

4ºC Jewelry＋14.2－3.5－4.2＋3.2

4ºC BRIDAL－16.7＋2.9－26.9＋5.1

Canal4ºC＋19.4－6.8－5.9＋1.6

EAU DOUCE4ºC＋29.3＋1.7＋2.3－2.530

6. Jewelry Business : Sales by Store Channel
1H FY 2022(2022/8)

1H FY 2023 (2023/8)

Actual results

Actual results(Millions of yen)

(Millions of yen)Roadside stores

68

28－59.0

0.4

Bridal stores

1,366875－36.0

11.1

Fashion buildings

2,098

1,923－8.3

24.4

Department stores

3,554

3,555±0.0

45.2

EC Business

844

1,005＋19.1

12.8

Overseas・Advance Sale・
Other374

485

＋29.7

6.2

Total

8,270

7,873－5.4

100.0

YoY (%)

Share (%)

31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 Department (Fukuhara)
TEL +81-3-5719-3295

E-mail ir-yondoshi@yondoshi.co.jp

Note: Projections throughout these materials are based on forecasts, and shall not be regarded as pledges orguarantees. They shall be used on the full acknowledgment that actual results may differ from projections.