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

Investors’ Presentation
Results for the Fiscal 2016
(The Fiscal Year Ended February 28, 2017)
April 10, 2017

Contents
Ⅰ. Overview and Summary of the Fiscal 2016, the Fiscal Year Ended
February 28, 2017
Ⅱ. Results Forecasts for Fiscal 2017 as well as Priority Issues and Measures
Ⅲ. Progress under the 4th Medium-Term Management Plan

Hidenori Suzuki, 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’s
operating environment, market trends and fluctuations in foreign currency exchange rates. As a result, readers are advised not
to rely solely on the information provided as the basis for investment decisions.

2Overview of Consolidated Operating Results (1)Increase in earnings against a decrease in revenue; record high operating income andnet income for a fifth consecutive fiscal year together with record high ordinary
income for a sixth consecutive fiscal year
Net sales: ¥49,797 million (-5.8% YoY) Operating income: ¥6,529 million (+6.8% YoY)
Ordinary income: ¥7,796 million (+13.7% YoY) Net income: ¥4,962 million (+16.0% YoY)
(Millions of yen)

Net sales

Operating income

52,883

－5.8%

6,113

6,854

+6.8%

FY2016FY2015
Actual Results Actual Results

Net income

7,796

6,529
49,797FY2015
Actual Results

Ordinary income

4,277+13.7%FY2016FY2015
Actual Results Actual Results

4,962

FY2016
Actual Results+16.0%FY2015
Actual Results

FY2016
Actual Results

3

Net Sales Excluding the Impact of the Sale of
MISUZU Co., Ltd.
Increase in revenue with a YoY upswing of 3.7% in net sales excluding
the impact of the sale of MISUZU Co., Ltd.
Net Sales Comparison after Excluding the Impact of the Sales of MISUZU Co., Ltd.
(Millions of yen)

52,883
MISUZU Co.,
Ltd. Net Sales＋1,789 million yen(＋3.7%)

49,797

4,875

48,008FY2015 Actual Results

FY2016 Actual Results
4Improvement in Profit Margins (1)Improvement in the earnings structure; decrease in the breakeven point

60

58.3

55

54.1

54.8

49.1

49.4

54.9

55.9

56.6

58.9

57.0

50.6

50
47.5

45

46.2

47.0

46.6

46.3

46.7

2015/2

2016/245.8

40
2009/2

2010/2

2011/2

2012/2Gross profit margin

2013/2

2014/2

2017/2

Operating expenses ratio
5

Improvement in Profit Margins (2)Substantial increases in the operating income margin, ordinary income
margin and ROE

16
14
12
10
8
6
4
2
0

15.7
12.2

11.5

13.1

10.1
8.3
4.5

5.4

6.4
7.3

5.0

5.4

1.9

2.6

2.6

2009/2

2010/2

2011/2

4.4

ROE

8.9

13.0

10.0

10.8

11.6
10.5

9.4
8.1

7.0

7.5

2013/2

2014/2

5.1

2012/2

Operating income margin

2015/2

2016/2

2017/2

Ordinary income margin
6

Operating Income
Operating income: ¥6.52 billion (+6.8% YoY)
Operating income margin :13.1% (+1.5pt YoY)
Cost of sales ratio
FY2015 FY 2016
41.7% ⇒ 41.1%－ 0.6pt(Millions of yen)

SG&A expenses to net sales ratio
FY2015 FY 201646.7 % ⇒ 45.8%－ 1.1pt－ 1,899－ 3,086
6,113

6,529
－ 1,602
OperatingincomemarginOperatingincomemargin

13.1%

11.6%
Operating income

FY2015(2016/2)

Net sales

Cost of sales

SG&A expenses

Operating income

FY2016(2017/2)

7

Overview of Consolidated Operating Results (2)FY2016 (2017/2)

FY2015 (2016/2)(Millions ofyen, %)

ActualResults

(%)

Plans

(%)

FY2016 (2017/2)
ActualResults(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

52,883100.0

51,500100.049,797

100.0

－5.8

－3.3

Gross profit

30,831

58.3

30,107

58.5

29,348

58.9

－4.8

－2.5

Gross profit
margin (%)

58.3+0.6pt+0.4ptSelling, generalandadministrative(SG&A) expenses

24,71746.7

23,55745.7

22,818

45.8

－7.7

－3.1

Operatingincome

6,113

11.6

6,550

12.7

6,529

13.1

+6.8

－0.3

Ordinary
income

6,854

13.0

7,700

15.0

7,796

15.7

+13.7

+1.2

Net income

4,277

8.1

4,950

9.3

4,962

10.0

+16.0

+0.2

58.5

58.9

8

Trends in Quarterly Business Results
Steady growth in both net sales and operating income
Trends in Net Sales by Quarter
1Q(Millions of yen)

4Q

3Q

2Q

11,386

11,618 12,672 12,306 11,588

11,239 11,037 11,142 11,742 11,347

11,735 11,803 12,095 12,251 11,541

'13/2

'14/2

'13/2

'13/2

'15/2

'16/2

'17/2

'14/2

'15/2

'16/2

'17/2

'14/2

'15/2

'16/2

'17/2

13,876 14,543 14,815

'13/2

'14/2

'15/2

Trends in Operating Income by Quarter
2Q

1Q
1,560
1,117 1,091

'13/2

'14/2

'15/2

(Millions of yen)

'16/2

'17/2

805

700

855

'13/2

'14/2

'15/2

'16/2

FY2015(2016/2)

1,157

'17/2

875

1,090 1,043 1,172 1,261

1,451

'13/2

'14/2

'13/2

'15/2

'17/2

4Q
1,919

843

'16/2

(Millions of yen)

3Q

1,348 1,547

16,583 15,321

'16/2

1Q
FY20162Q
FY20163Q
FY20164Q
FY2016

'17/2

'14/2

2,163

'15/2

FY2016(2017/2)

Increase /(Decrease)

2,732 2,564

'16/2

'17/2

YoY

Net sales

52,883

11,588

11,347

11,541

15,32149,797(3,086)－5.8

Gross profit

30,831

6,831

6,491

6,912

9,114

29,348(1,894)－4.8

Operating income

6,113

1,547

1,157

1,261

2,564

6,529

+416

+6.8

9

Summary by Segment: Jewelry Business Increase in revenue and earnings; record high in net sales for a fifth
consecutive fiscal period and record high in operating income foran eighth consecutive fiscal period canal 4ºC : Continued growth in existing stores due to a substantial
increase in the number of items handled; upswing in both net sales
and profits reflecting contributions from the opening and renovationof stores Luria 4ºC : Expansion through the opening of stores proceedingat a pace that exceeds plans; also, robust existing store trends
 MAISON JEWELL: Mainly marketed through the suburban
shopping center channel; double-digit percentage net sales growth,which is largely due to robust trends in bridal jewelry items;
opened the first store outside the Kanto region in AEON MALL
Hiroshima Fuchu e-commerce net sales climbed 30.5% YoY with the pace of growth
exceeding plans; launched the official 4ºC BRIDAL online site
in August 201610

Overview of Business Results by Segment～The Jewelry Business(Millions of yen)

Net sales
31,880Operating income

33,166

5,831

5,980

(Millions ofyen, %)

ActualResults－0.3%

FY2015FY2016
Actual Results Actual Results

FY2015
Actual Results

FY2016 (2017/2)

(%)

Plans

(%)

ActualResults

3,823

3,836

+1.7%

FY2015FY2016FY2016
ActualResults
ActualResults
Actual Results

FY2015 (2016/2)

Net income

6,073

5,970

+2.6%

+4.0%

FY2015
Actual Results

Ordinary income(%)

FY2016
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

31,880100.0

34,076100.0

33,166

100.0

+4.0

－2.7

OperatingincomeOrdinary
income

5,831

18.3

6,129

18.0

5,980

18.0

+2.6

－2.4

5,970

18.7

6,248

18.3

6,073

18.3

+1.7

－2.8

Net income

3,836

12.0

3,930

11.5

3,823

11.5

－0.3

－2.7

(* Effective from the fiscal year under review, figures disclosed after accounting for intersegment net sales and transfers.)

11Summary by Segment: Apparel Business Increase in revenue in real terms after excluding the impact of thesale of MISUZU Co., Ltd.; substantial upswing in earnings
 Apparel manufacturing business: Substantial improvement in profit
margins owing to successful efforts aimed at enhancing production
management capabilities
 Everyday fashion brand PALETTE: Successful steps to strengthen
the product mix as well as sales and promotion activities; increasein existing stores net sales for the seventh consecutive fiscal year;
also an improvement in profit margins
 RAPPORT brand retail membership sales business:
Closed in February 201712

Overview of Business Results by Segment～The Apparel Business(Millions of yen)

Net sales

Operating income

21,003

Ordinary income

Net income

753

494

398

16,630472
225
188＋59.5%＋162.8%－20.8%＋79.9%△34
FY2015
Actual Results

FY2015FY2016FY2016
ActualResults
ActualResults
Actual Results

FY2015 (2016/2)(Millions ofyen, %)

ActualResults

FY2015FY2016
Actual Results Actual Results

FY2015
Actual Results

FY2016 (2017/2)
Plans

(%)

ActualResults(%)(%)

FY2016
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

21,003100.0

17,294100.0

16,630

100.0

－20.8

－3.8

OperatingincomeOrdinary
income

188

0.8

459

2.3

494

3.0

+162.8

+7.6

472

2.2

679

3.9

753

4.5

+59.5

+10.9

Net income

225

1.1

435

2.2

398

2.4

+79.9

－8.5

(* Effective from the fiscal year under review, figures disclosed after accounting for intersegment net sales and transfers.)

13

Overview of Financial Position and Cash Flows(Consolidated) Total assets, liabilities, and net assets stood at ¥62.4 billion, ¥13.3 billion,and ¥49.0 billion, respectively
 Cash flows from financing activities: Purchased treasury stock totaling¥860 million and paid cash dividends of ¥1,190 million as a part of efforts
to return profits to shareholders
Financial Position

Cash Flows
As of February 28, 2017

Total assets¥62.4 billion¥49.0 billion

Total liabilities Total net assets¥ 13.3 billion

FY2015(2016/2)

FY2016(2017/2)

Increase(Decrease)

Operatingcash flows

5,319

4,964

(355)

Investingcash flows(545)(2,347)(1,802)Financing
cash flows(3,739)(2,305)

1,434

Free
cash flows

4,774

2,616

(2,158)(Millions of yen)

14

Overview of Capital Investment as well as Depreciation
and Amortization (Consolidated)
Capital investment: ¥0.95 billion

Depreciation and amortization: ¥1.15 billion

FY2015 (2016/2)

FY2016 (2017/2)(Millions of yen, %)YoY
Actual Results

Actual Results

Capital investment(including long-term
prepaid expenses)(cash flow basis)

1,533

952

FY2015 (2016/2)

FY2016 (2017/2)(Millions of yen, %)YoY
Actual Results

Depreciation andamortization

(581)

1,161

Actual Results

1,156

(5)
15

Status of Store Openings and Closures
 Undertook the opening of stores in the Jewelry Business in excess of plans;
stores closed as a result of the decision to terminate operations for two brands
 Opened five stores in the Apparel Business(four PALETTE stores and one sales agent store)
ApparelBusiness

Jewelry BusinessJapan

FY2015(2016/2)

FY2016
ActualResults(2017/2)

Overseas

Fashion
Building

Total*

age

Roadsidebutique

Department
store

Bridal Shop

Fiscalyearend

6

88

39

75

208

6

76

273

Storesopened

0

7

0

13

20

2

5

26

Storesclosed

1

9

2

1

13

1

2

16

Fiscalyearend

5

86

37

87

215

7

79

283

Total

Co., Ltd(Note: Jewelry sales agent stores at age Co., Ltd.; year –end of FY 2015 store adjustment (-17), year-end of FY 2016 store
adjustment (-18) due to opening one sales agent store during FY 2016)(* Figures as of the end of the fiscal year ended February 29, 2016 are after excluding MISUZU Co., Ltd.)

16

Status of the Number of Domestic Brand Stores in the
Jewelry Business Increase in the number of domestic brand stores handling both jewelry andbag Decision to terminate operations for the RUGIADA and deux et deux brands
effective from the fiscal year under review
4ºC

4ºC

FY2015(2016/2)

FY2016
ActualResults(2017/2)

BRIDAL

canal 4ºC

Other*

Jewelry
Total

4ºC bags

Luria 4ºC

Bag Total

Fiscalyear-end

93

48

45

25

211

49

19

68

Storesopened

5

1

3

19

28

7

15

22

Storesclosed

6

0

0

14

20

7

1

8

Fiscalyear-end

92

49

48

30

219

49

33

82

※1. Other: EAUDOUCE 4ºC, RUGIADA, MAISON JEWELL, deux et deux
※2. Composite stores that handle multiple brands are recorded as a single store by each individual brand.

17

Return of Profits to Shareholders
 With the basic policy of providing stable and continues dividends,
YONDOSHI HOLDINGS also maintains a flexible approach toward theacquisition of treasury stock⇒ YoY increase of ¥10 per share for an annual dividend of ¥50 per share for the fiscal
year ended February 28, 2017 (sixth consecutive fiscal year of dividend increase)⇒ Undertook the purchase of 400,000 shares of treasury stock in August 2016
(third consecutive fiscal year of treasury stock acquisition)⇒ Dividend payout ratio: 25.9%, up 1.4 of a percentage point YoY(%)(Millions of yen)

4,962

5,000
4,000

25.9

4,277 24.5

23.9

Net income (left axis)

20.0

Total dividends (left axis)

10.0

Total amount of treasury stock
purchase (left axis)

3,612

3,000

2,600

2,080

2,000
1,000

30.0

1,318 865

1,070

899

Payout ratio (right axis)

0.00FY2014 (2015/2)

FY2015 (2016/2)

FY2016 (2017/2)

FY2014 (2015/2)

FY2015 (2016/2)

FY2016 (2017/2)

Annual dividends per share (Yen)

32.0

40.0

50.0

Net income per share (Yen)

133.90163.22

193.38

Payout ratio (%)

23.9

24.5

25.9

Total amount of treasury stock purchased(Millions of yen)

2,080

2,600

865

Total payout ratio (%)

82.5

85.8

44.0

18

Ⅰ. Overview and Summary of the Fiscal 2016, the Fiscal Year Ended
February 28, 2017
Ⅱ. Results Forecasts for Fiscal 2017 as well as Priority Issues and Measures
Ⅲ. Progress under the 4th Medium-Term Management Plan

19

Business Results Forecasts for Fiscal 2017 (1)Increase in both revenue and earnings; operating income and net income projected
to reach a record high for the sixth consecutive fiscal year; ordinary income is forecast
to reach a record high for the seventh consecutive fiscal year
Net sales ¥51,000 million (+2.4% YoY) Operating income ¥ 6,850 million (+4.9% YoY)
Ordinary income ¥ 8,250 million (+5.8% YoY) Net income ¥ 5.550 million (+11.8% YoY)
(Millions of yen)

Net sales
51,50049,797

6,550
Operating income

51,000

6,850
6,529

7,700
Ordinary income

4,950
Net income

8,250

5,550

7,796
4,962

+2.4%

FY2016FY2017 Plan
Actual Results+4.9%

FY2016FY2017 Plan
Actual Results+5.8%+11.8%FY2016FY2017 Plan
Actual Results

FY2016FY2017 Plan
Actual Results

20Business Results Forecasts for Fiscal 2017 (2) For the second quarter cumulative period, revenue is projected to increase andearnings decrease on a YoY basis
 Revenue and earnings are projected to increase for the full fiscal year;
operating income and net income is expected to reach a record high for a sixth
consecutive fiscal year while ordinary income is forecast to reach a record highfor the seventh consecutive fiscal year
FY2016 (2017/2) Results(Millions ofyen, %)

Results(%)

YoY

FY2017 (2018/2) Plan
2Q
(Cumulative)(%)

Full-year(%)

Increase(Decrease)(%)

Net sales

49,797100.0

23,000100.051,000

100.0

+2.4

Gross profit

29,34858.9

13,50758.7

30,36259.5+3.5

Gross profit
margin

58.9

58.7

59.5

+0.6PtSelling, general andadministrative
expenses

22,81845.8

11,00747.9

23,51246.1+3.0

Operating income

6,529

13.1

2,500

10.9

6,850

13.4

+4.9

Ordinary income

7,796

15.7

3,150

13.7

8,250

15.7

+5.8

Net income

4,962

10.0

2,150

9.3

5,550

10.9

+11.8
21

Full Fiscal Year Business Results Forecasts by Segment(Figures are after accounting for intrasegment net sales and transfers)

 The Jewelry Business is projected to again experience revenue and earnings
growth The Apparel Business is expected to witness an upswing in revenue and earnings
on the back of stable growth
FY2016(2017/2)(Millions of yen, %)FY2017 (2018/2)

Results

The Jewelry
Business

The ApparelBusiness

Forecast

YoY

Net sales

33,166

33,664+1.5

Operating income

5,980

6,367

+6.5

Ordinary income

6,073

6,482

+6.7

Net income

3,823

4,236

+10.8

Net sales

16,63017,410+4.7

Operating income

494

592

+20.0

Ordinary income

751

805

+7.3

Net income

398

523

+31.9

22

Plans for Store Openings and Closures Plans to open 20 store in Japan including composite stores in the Jewelry Business Plans to open 7 PALETTE stores in the Apparel BusinessApparelBusiness

Jewelry Business
Japan
Roadsidebutique

FY2016
ActualResults(2017/2)

FY2017
Forecast(2018/2)

Department
store

Bridal Shop

Overseas

Fashion
Building

Total

Total*

ageCo., LtdFiscalyearend

5

86

37

87

215

7

79

283

Storesopened

0

9

0

11

20

4

7

31

Storesclosed

0

11

1

3

15

1

1

17

Fiscalyearend

5

84

36

95

220

10

85

297

(Note: Jewelry sales agent stores at age Co., Ltd.; store adjustment (-18))23

Plans for the Number of Domestic Brand Stores in the Jewelry Business Organize certain stores into specific categories in a bid to promote a unique anddistinct identity for 4ºC BRIDAL specialty stores
 Switch over certain stores from 4ºC bags to Luria 4ºC brand products
4ºC

4ºC

FY2016
ActualResults(2017/2)

FY2017
Forecast(2018/2)

BRIDAL

canal 4ºC

Other*

Jewelry
Total

4ºC bags

Luria 4ºC

バッグ計

Fiscalyear-end

92

37

48

30

207

49

33

82

Storesopened

6

0

2

4

12

1

33

34

Storesclosed

4

1

1

1

7

37

2

39

Fiscalyear-end

94

36

49

33

212

13

64

77

Note 1. Other: EAU DOUCE4℃, MAISON JEWELL
Note 2. The number of brand stores that handle 4°C BRIDAL products as the end of the fiscal year ended February 28, 2017 has been
retroactively adjusted to reflect only bridal specialty stores following the organization of certain stores into specific categories.
Note 3. Composite stores that handle multiple brands are recorded as a single store by each individual brand.

24

Jewelry Business: Strengthen Efforts to Address 4ºC Jewelry
Gift Needs
 Strengthen the ability to address gift needs by enhancing product development
capabilities as well as product lineups
 Further expand the market through existing store

25

Jewelry Business: Pursue a Unique and Distinct Identity for
4ºC BRIDAL Specialty Stores Roll out products and create sales floors that reflect the unique and distinct
identity of bridal specialty stores Release a lineup of innovative products; expand the number of product types from
240 to 310
 Enhance planning as well as customer service capabilities by reorganizing thestructure of specialty bridal operations(4ºC BRIDAL)(4ºC BRIDAL shop presentation)

26

Jewelry Business: Bolster Growth Brand Product Capabilities
and Open New Stores
 Further expand the urban-type SC sales channel through canal 4ºC growth In addition to the opening of 14 Luria 4ºC stores, plans to implement a changeoverfrom 4ºC bags at 19 stores(canal 4ºC LaLaport Tokyo-Bay Store)(Luria 4ºC Namba Marui Store)27

Jewelry Business: Nurture the MAISON JEWELL Brand
 Increase visibility by upgrading and expanding products while implementing sales
promotion measures
 Further cultivate the urban-type SC sales channel by opening new stores(MAISON JEWELL bridal jewelry)(MAISON JEWELL Chikushino Store)28

Jewelry Business: Further Expand the e-commerce Business Plan for further e-commerce business growth through the e-commerce channel
which continues to expand
 Growth and expansion of JEWELRY BOUTIQUE, which handles such items as
jewelry and bags as well as the Company-run official 4ºC BRIDAL online
shopping site

(JEWELRY BOUTIQUE)

29

Jewelry Business: Cultivate the China Market
 Plans to open four stores during the fiscal year ending February 28, 2018; aim
to roll out 10 stores during the period of the Fourth Medium-Term
Management Plan Build a 4ºC jewelry business model in China(4ºC Shanghai Yaohan Store)30

Apparel Business: Apparel Manufacturing Business Strengthen marketing capabilities by further enhancing product planningcapabilities and ensuring the proper use of exhibitions
 Promote continuous and stable transactions with existing major customers
 Secure profit margins by enhancing production management capabilities(AS’TY Inc. exhibition)(AS’TY VIETNAM INC.)

31

Apparel Business: Everyday Fashion Brand Business Forecasting an eighth consecutive fiscal year of revenue growth in existing
PALETTE store sales Capture and expand blue chip customers utilizing the point card system
 Plans to open seven stores; further entrench the Group’s dominant position in the
Kansai(PALETTE Safa Store)(PALETTE Ekiya Store)

32

Returning Profits to Shareholders
Projecting an annual dividend of ¥65 per share and a seventh consecutive fiscal yearof dividend increase; looking to achieve a dividend payout ratio of 30%
Trends in Dividend Payout Ratios, etc.
FY2014 (2015/2)

FY2015 (2016/2)

FY2016 (2017/2)

FY2017 (2018/2)
Forecast

Annual dividends
per share (Yen)

32.0

40.0

50.0

65.0

Dividend payout
ratio (%)

23.9

24.5

25.9

30.1

 In addition to the stable and continuous payment of dividends, flexibly purchasetreasury stock on an ongoing basis
 Utilize the remaining reserves of cash after opening new stores and undertaking thereturn of profits to shareholders to enter into M&As and engage in other activities
with the aim of promoting growth in the Jewelry Business; to this end, upgrade andexpand the brand portfolio and strengthen the supply chain
33

Ⅰ. Overview and Summary of the Fiscal 2016, the Fiscal Year Ended
February 28, 2017
Ⅱ. Results Forecasts for Fiscal 2017 as well as Priority Issues and Measures
Ⅲ. Progress under the 4th Medium-Term Management Plan

34

Basic Policies of the Fourth Medium-Term Management Plan
– Numerical Vision
 Sale of MISUZU Co., Ltd., reorganization of brands, and closure of RAPPORT
stores in the second fiscal year of the Fourth Medium-Term Management Plan;
consolidated net sales forecast to reach ¥51.0 billion in the final fiscal year of
the Plan Ordinary income trending in excess of plans as of the end of the second fiscal yearof the Fourth Medium-Term Management Plan; ordinary income forecast tocome in at ¥8,250 million in the final fiscal year of the Plan Achieved the ROE numerical target of 10.0% or more one year in advance;
ROE projected to reach 10.9% in the final fiscal year of the Plan

Initial Numerical
VisionConsolidated net sales
Ordinary income
ROE

Revised Numerical
Vision after
Completion of theFirst Fiscal Year¥60.0 billion¥55.0 billion

or moreor more¥8.0 billion¥8.0 billion

or moreor more

10.0% or more

10.0% or more

Final Fiscal Year
Consolidated
Performance
Forecasts¥51.0 billion¥8,250 million
10.9%
35

Progress under the Fourth Medium-Term Management Plan (1)Steadfastly implemented priority measures; achieved results in excess of plans as ofthe end of the second fiscal year of the Plan
Priority Strategies
Pursue an aggressive store opening strategy;plans to open 70 new stores* over the threeyear period

Progress in the second fiscal year of the Plan

Opened 57 new stores as of the end of
February 2017
・ Rolled out 33 new Luria 4ºC stores

Develop businesses that will play animportant role in the next set ofgrowth strategies

exceeding the pace set out under the Plan
・ Substantial growth in the MAISONJEWELL brand; increasingly broadpotential for the opening of new stores・ Opened an official 4ºC BRIDAL online
store
・ Opened two new stores bringing the total
number of stores in China to seven;targeting 10 stores as of the end of
February 2018
・ Continued to implement measures aimed
at the development of new brands
36

Progress under the Fourth Medium-Term Management Plan (2)Priority Strategies

Progress in the second fiscal year of the Plan

・ Took steps to further strengthen the lineup

Expand the scale of business bycontinuing to push forward theGroup’s five growth engine pillarsof gifts through the development of productsin the 4ºC jewelry brand・ Continued to pursue a unique and distinct
identity for 4ºC BRIDAL specialty stores・ Expanded the canal 4ºC urban-type SC
sales channel
・ Substantially improved profit margins in
the apparel manufacturing business・ Recorded a seventh consecutive fiscal yearof existing store revenue growth bystrengthening sales and promotional activities
as well as product composition capabilities inthe everyday fashion brand PALETTE business37

Toward Stable and Sustainable Growth— Creating Sustainable Value
Work toward enhancing value in the three jewelry SPA, apparel OEM, andretail businesses
OutputInputsSustainable
GrowthShareholders
Customers

Shareholders
Customers

Jewelry SPA
Employees

Employees

Manufacturers

Manufacturers
Partnercompanies

Apparel OEM

RetailPartnercompanies

SocietySociety

Management and business platforms
The environment, society, and governance (ESG)38

Activities Aimed at Addressing ESG Issues
 Continued to develop human resources through the use of a corporate university
as a way to promote sound business management
 Expanded measures that promote diversity and an environment in which womencan excel
 Further upgraded and expanded the quality assurance structure and systems to
top class industry levels

39

In conclusion

YONDOSHI HOLDINGS reported an increase in revenue in real terms andcontinued to post record highs at each major level of profit in the fiscal year ended
February 28, 2017; this was largely attributable to growth in the Jewelry Businessand a substantial improvement in profit in the Apparel Business

YONDOSHI HOLDINGS is again targeting record high profit in the fiscal year
ending February 28, 2018; this is mainly due to expectations of further expansion
in the Jewelry Business and stable growth in the Apparel Business(operating income and net income are forecast to reach record highs for a sixth
consecutive fiscal year; ordinary income to anticipated to reach a record high forthe seventh consecutive fiscal year)

YONDOSHI HOLDINGS implemented measures aimed at promoting existing
store growth; these measures included strengthening 4ºC jewelry productcapabilities and pursuing a unique and distinctive identity for bridal specialty stores

YONDOSHI HOLDINGS continued to expand net sales on the back of vigorous
efforts to open and renovate stores focusing mainly on the Luria 4ºC brand;
steps were taken to nurture the MAISON JEWELL brand, strengthen
the e-commerce business, and concentrate on opening new stores in China while
pushing forward a raft of other initiativesDividends increase for a sixth consecutive fiscal year on the back of robust results;
the annual dividend in the final fiscal year of the Fourth Medium-Term Management
Plan ending February 2018 is forecast to come in at ¥65 per share, up ¥15 per share
YoY; on this basis, YONDOSHI HOLDINGS is looking to achieve a dividend payout
ratio of 30%

Progress under the Fourth Medium-Term Management Plan is extremely steady;
YONDOSHI HOLDINGS is committed to decisively implementing measures ina bid to secure further growth40

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+81-3-5719-3289
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.