CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2019
(March 1, 2018 to May 31, 2018)
July 9, 2018
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code
number 8008.
Representative:
Inquiries:

Saishi Kimura, Chairman and Representative Director, CEO
Masahiko Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): July 13, 2018
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 2018
(March 1, 2018 to May 31, 2018)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable toNet sales
Operating Income
Ordinary Income
owners of parent％

Millions of yen

Millions of yen％

Millions of yen％

Millions of yen％

1Q FY2018

11,216(1.1)

1,196(10.8)

1,512(11.7)

1,043(12.2)

1Q FY2017

11,341(2.1)

1,341(13.3)

1,714(7.9)

1,188(2.4)

Note: Comprehensive income 1Q FY2018: 1,095 million yen (-9.4%) 1Q FY2017: 1,209 million yen (-15.0%)
Net Incomeper ShareNet Income perShare after Dilution
Yen

Yen

1Q FY2018

40.66

40.63

1Q FY2017

46.59

46.54

(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share%Yen

53,66979.92,086.46

66,32153,399February 28, 2018
(Reference)Shareholders’ equity: May 31, 2018: 53,569 million yen
February 28, 2018: 53,299 million yen

80.4

2,077.02

Millions of yen

May 31, 2018

Millions of yen

67,0702. Dividends
Dividends per Share(Record Date)
Fiscal 2017
Fiscal 2018
Fiscal 2019
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

——

32.50

—

32.50

65.00

37.50

—

37.50

75.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 28, 2019: No-1-3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2019
(March 1, 2018 to February 28, 2019)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable toNet Income
Operating Income
Ordinary Income
owners of parentper ShareNet Sales
Millions of yen

Interim period
Fiscal year
endingFebruary 28,2019%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

22,500

0.3

2,300

(4.5)

3,000

(1.5)

2,100

(3.0)

81.82

49,000

2.0

6,150

0.8

7,650

1.2

5,350

1.1

208.44

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 28,
2019: NoNotes(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: 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: No
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 theperiod-end:
May 31, 2018: 29,331,356 sharesFeb. 28, 2018: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2018: 3,656,431 sharesFeb. 28, 2018: 3,669,847 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidatedperiod)First quarter fiscal 2018: 25,666,849 shares First quarter fiscal 2017: 25,501,674 shares
Note: The number of recorded treasury stock is inclusive of 91,500 of the Company’s shares held by theYONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust Account as of the end of thequarterly fiscal period.

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
The forecasts of operating results and other items concerning the future contained in this document arebased 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. QualitativeInformation on Business and Financial Results (3) Explanation of Consolidated Results Forecasts andOther Future Predictions” on page 4.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results4(1)Explanation of Business Results4(2)Explanation of Financial Condition

4(3)Explanation of Consolidated Results Forecasts and Other Future Predictions

4Consolidated Quarterly Financial Statements

5(1)Consolidated Quarterly Balance Sheets

5(2)Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of7

Comprehensive Income
Consolidated Quarterly Statements of Income

First Quarter Cumulative

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

78Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)9(Notes Regarding Substantial Changes in Shareholders’ Equity)9(Additional Information)

9(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 2019 (March 1, 2018 to May 31, 2018),
the Japanese economy recovered at a moderate pace on improvement in corporate
earnings and employment conditions, while overseas the outlook remained turbid
owing to concerns including uncertainty in political trends and geopolitical risk.
In the retail industry, despite favorable consumption from overseas visitors to Japan, businessconditions remained harsh as a result of diversification in consumer purchasing trends, and enduring
budget-consciousness.
Under these circumstances, during the fiscal year ending February 2019, the first year of the fifth
medium-term management plan, the YONDOSHI HOLDINGS Group will continue to cultivate humanresources, bolster product capabilities, and assess market trends, with the aim of becoming a century-oldcompany and brand. Further, we will practice CSR-based management to establish a highly trusted
corporate group, and work to enhance enterprise value by strengthening internal controls, providing
shareholder returns, and making medium to long-term investments linked to earnings growth.
As a result, net sales for the subject first quarter period amounted to ¥11,216 million (down 1.1%
from the same period of the previous fiscal year), with operating income of ¥1,196 million (down10.8% YoY), ordinary income of ¥1,512 million (down 11.7% YoY), and profit attributable to owners ofparent of ¥1,043 million (down 12.2% YoY).
Operating results by business segment were as follows.

Jewelry Business
The F.D.C. Products Group posted revenue below plan targets due to such factors as additional timerequired for recovery in bridal jewelry.
As a result, net sales in the Jewelry Business segment amounted to ¥6,672 million (down 4.4% YoY),
with operating income of ¥1,012 million (down 16.5% YoY).
Apparel Business
The AS’TY Group achieved positive results on successful efforts to strengthen measures with majorclients utilizing its planning capabilities and production framework. Retailer age Co., Ltd. achievedpositive returns from expanded openings of new locations for its mainstay everyday fashion brand
PALETTE, and measures to strengthen sales promotions.
As a result, net sales in the Apparel Business segment amounted to ¥4,543 million (up 4.1% YoY),
with operating income of ¥223 million (up 31.0% YoY).
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2018) amounted to ¥67,070 million,
an increase of ¥749 million from the end of the previous fiscal year (February 28, 2018). This was due
mainly to increases of ¥725 million in notes and accounts receivable―trade; and ¥528 million inmerchandise and finished goods; against a decrease of ¥1,150 million in short-term investment
securities. Total liabilities amounted to ¥13,401 million, an increase of ¥480 million from the end of theprevious fiscal year. This was due mainly to an increase of ¥323 million in notes and accounts
payable―trade. Total net assets at the end of the subject period amounted to ¥53,669 million, anincrease of ¥269 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 9, 2018.

-4-2. 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, 2018

the Fiscal Year Ending(As of February 28, 2018)

February 28, 2019
(As of May 31, 2018)ASSETS
Current assets:
Cash and deposits

2,076,174

2,184,309

Notes and accounts receivable ― trade

3,061,207

3,786,524

Short-term investment securities3,950,000

2,800,000

Merchandise and finished goods

8,332,336

8,860,619

Work in process

507,681468,625

Raw materials and supplies

633,136

720,073

Other current assets

988,864

1,235,519

Allowance for doubtful accounts(2,686)(5,645)

19,546,714

20,049,726

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

5,918,332

5,926,626

Land

5,492,215

5,492,215

806,838

816,604

12,217,387

12,235,446

4,220,291

4,096,165

Other, net
Total property, plant and equipment
Intangible assets:
Goodwill
Other intangible assets

122,038

260,434

Total intangible assets

4,342,329

4,356,600

25,768,779

26,000,153

Investments and other assets:
Investment securities
Net defined benefit asset
Other656,629

675,095

3,896,453

3,853,926

Allowance for doubtful accounts(107,030)(100,000)

Total investments and other assets

30,214,831

30,429,175

Total noncurrent assets
Total assets-5-

46,774,548

47,021,221

66,321,262

67,070,948

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, 2018

the Fiscal Year Ending(As of February 28, 2018)

February 28, 2019
(As of May 31, 2018)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

4,077,362

4,400,730

Income taxes payable

856,205

469,469

Provision for bonuses

251,351

340,298

Provision for directors' bonuses

13,30014,989Asset retirement obligations

34,40633,462Other

2,806,317

3,199,831

Total current liabilities

8,038,943

8,458,780

Long-term loans payable

277,470

277,470

Provision for directors' retirement benefits

416,528―Net defined benefit liability

568,010547,775

Noncurrent liabilities:

Asset retirement obligations

1,012,744

1,031,459

Other

2,608,056

3,086,439

Total noncurrent liabilities
Total liabilities

4,882,809

4,943,144

12,921,753

13,401,925

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,182,008

18,181,292

Retained earnings

37,503,586

37,687,968

Treasury stock(6,310,953)(6,276,308)

Total shareholders’ equity

51,861,161

52,079,473

Valuation difference on available-for-sale securities

1,425,917

1,458,907

Deferred gains or losses on hedges(20,418)(2,973)

Revaluation reserve for land

(161,985)(161,985)

Other accumulated comprehensive income:

Foreign currency translation adjustments

78,63859,541Remeasurements of defined benefit plans

116,129

136,675

1,438,281

1,490,166

Total other accumulated comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-100,066

99,38353,399,509

53,669,022

66,321,262

67,070,948

(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, 2018

February 28, 2019

(March 1, 2017 to(March 1, 2018 to

May 31, 2017)

May 31, 2018)

Net sales

11,341,837

11,216,103

Cost of Sales

4,734,743

4,718,726

Gross profit

6,607,093

6,497,376

Selling, general and administrative expenses

5,265,425

5,300,461

Operating income

1,341,667

1,196,915

Non-operating income
Interest income

5,7679,778

Dividends received
Equity in earnings of affiliates

8,157

8,977

331,909237,235

Rent of real estate for investment

18,28518,285―

12,642Foreign exchange gains
Other

11,57731,442

Total non-operating income

375,697318,361

Non-operating expenses
Interest expenses
Depreciation of real estate for investment

2532

1,171

1,169

Management cost for real estate for investment

511

511

Loss on insurance cancellation―

662

Foreign exchange losses
Other
Total non-operating expenses
Ordinary income

454

―

1,179

158

3,342

2,535

1,714,022

1,512,740

Extraordinary loss
Impairment loss

5,106

Loss on closing of stores

1,143

Total extraordinary losses

6,249

―――

Net income before income taxes

1,707,772

1,512,740

Income taxes ― current

483,555

459,926

Income taxes ― deferred

36,027

9,104

Total income taxes

519,583

469,031

Net income

1,188,188

1,043,709

Profit attributable to owners of parent

1,188,188

1,043,709-7-

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, 2018

February 28, 2019

(March 1, 2017 to(March 1, 2018 toMay 31, 2017)

May 31, 2018)

1,188,188

1,043,709

Other valuation difference on available-for-sale securities(25,826)

54,870

Deferred gains or losses on hedges
Foreign currency translation adjustments(11,936)

17,444(6,613)(19,096)

Remeasurements of defined benefit plans, net of tax

10,71013,97955,393(15,313)

21,727
1,209,916

51,885
1,095,594

1,209,916

1,095,594――

Other comprehensive income

Share of other comprehensive income of entities accountedfor 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-8-(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Additional Information)(Transactions to Provide Company Stock to Employees through a Trust)
The Company has introduced an employee stock ownership plan trust (“ESOP trust”) as an incentive
to employees to increase medium- to long-term corporate value, conducting transactions to provide
Company stock to employees’ shareholding association through a trust.
i. Transaction summary
The Company established a trust with the beneficiaries as employees who participate in theYONDOSHI HOLDINGS Employees’ Shareholding Association (“the Shareholding Association”)
and satisfy certain requirements. The trust acquires Company stock in an amount expected to beprocured by the Shareholding Association over a five-year period, and sells the shares to theShareholding Association on a fixed date each month. When the trust is concluded, if the trust has
earned a profit from a rise in the share price, the funds are distributed to the employee beneficiaries inproportion to their contribution. If a loss is incurred due to a decline in the share price, and debt
pertaining to the trust property remains, in accordance with the guarantee article in the loan agreement
the Company will discharge the entire debt to the bank, with no additional burden placed on
employees.
ii. Matters concerning the Company’s stock held in the trustCompany stock remaining in the trust is recorded as treasury shares under net assets at book value tothe trust (excluding ancillary expenses). At the end of the subject fiscal year, the book value of thesubject treasury shares was ¥277,662 thousand, for 100,600 shares at the end of the previous
consolidated fiscal year, and ¥252,545 thousand, for 91,500 shares at the end of the first quarter of thesubject consolidated fiscal year.
iii. Book value of debt recorded through application of the gross method
At the end of the previous consolidated fiscal year: ¥277,470 thousandAt the end of the first quarter of the subject consolidated fiscal year: ¥277,470 thousand(Elimination of the retirement bonuses for directors program)
The Company, at the 68th annual shareholders meeting held on May 17, 2018, decided to make a final
payment of retirement bonuses associated with the elimination of the retirement bonuses for directorsprogram. Accordingly, the entire amount of the “Provision for directors’ retirement benefits” wasreversed, and the ¥325,028,000 unpaid portion of the final payment shown in the “Other” item of
noncurrent liabilities as “Long-term accounts payable – other.”-9-(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 28, 2018 (March 1, 2017 to May 31, 2017)
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

6,978,204

4,363,632

11,341,837―

11,341,837

804

224,448

225,253(225,253)

―

Total

6,979,009

4,588,081

11,567,090(225,253)

11,341,837

Segment income1,212,989

170,745

1,383,735(42,067)

1,341,667

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥42,067 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 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.
ⅡThe first quarter of the fiscal year ending February 28, 2019 (March 1, 2018 to May 31, 2018)
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

6,672,336

4,543,767

11,216,103―

11,216,103

42

229,860

229,902(229,902)

―

Total

6,672,378

4,773,627

11,446,006(229,902)

11,216,103

Segment income

1,012,997

223,637

1,236,635(39,719)

1,196,915

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥39,719 thousand for segment income mainly includes amortization of goodwill
totaling minus ¥124,126 thousand, general administrative expenses that are not attributable to individual reporting
segments amounting to minus ¥127,973 thousand and elimination of inter-segment transactions of ¥212,379 thousand.
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 byReporting Segment
There was no major impairment loss recorded during the period under review.

- 10 -