CONSOLIDATED FINANCIAL REPORTFISCAL 2014（Japanese GAAP）(March 1, 2014 to February 28, 2015)
April 13, 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 for operations
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Annual General Meeting of Shareholders date (planned): May 21, 2015
Fiscal 2014 Securities Report filing date (planned): May 22, 2015
Dividend payment commencement date (planned): May 22, 2015
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: Yes (for analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated Performance for FY 2014 (March 1, 2014 to February 28, 2015)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen

Ordinary Income%

Millions of yen

FY 201450,7263.5

5,467

FY 201349,003

1.6

4,906(Note) Comprehensive income: FY 2014: ¥4,541 million (28.9%)%

Millions of yen

Net Income%

Millions of yen

11.5

6,216

10.2

3,642

14.4

14.4

5,642

15.5

3,183

14.3

FY 2013: ¥3,522 million (14.6%)
Ordinary Income
to Total Assets

Ordinary Income
to Operating
Revenues%%%

FY 2014134.99134.788.1
FY 2013116.40116.24
7.5(Reference) Equity in earnings of affiliated companies accounted for by the equity method:
FY 2014: ¥493 million
FY 2013: ¥497 million

10.4
10.1

10.8
10.0

Net Income Per
Share

Net Income Per
Share (Diluted)

Yen

ROE

Yen

(2) Consolidated Financial Position
Total Assets

Net Assets to Total

Net Assets

Net Assets per Share ofCommon Stock

AssetsMillions of yen

Millions of yen%

Yen

As of February 28, 2015

60,99045,83075.1

1,722.67

As of February 28, 2014

58,47844,13675.4

1,609.45(Reference) Shareholders’ equity: As of February 28, 2015: ¥46,787 million

As of February 28, 2014: ¥44,116 million(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Cash and Cash
Equivalents at the Endof the Period
Millions of yen

FY 2014

4,329(1,184)(3,298)3,952

FY 20135,185(2,389)

(823)

4,093

Operating Activities

Investing Activities― 1 ―Financing Activities

2.

Dividends
Cash Dividends per Share of Common Stock
End of 1Q End of 2Q End of 3Q

FY 2013
FY 2014
FY 2015 (planned)3.

End of 4Q

AnnualCashDividend

Dividends

Payout Ratio

to Net Assets

Paid (Annual)(Consolidated)(Consolidated)

Cash Dividends

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

—
—
—

12.50
16.00
20.00

—
—
—

17.50
16.00
20.00

30.00
32.00
40.00

855
899

25.8
23.7
26.3

1.9
1.9

Forecast of Consolidated Results for FY 2015 (March 1, 2015 to February 29, 2016)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues

InterimFull Fiscal Year

4.

Operating Income

Ordinary Income

Net Income per

Net Income

Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

24,00052,500

0.8
3.5

2,000
5,800

(11.5)
6.1

2,300
6,700

(10.1)
7.8

1,300
4,100

(15.7)
12.6

48.18
151.95Other(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): No
New: —
Excluded: —(2) 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: Yes
4) Retrospective restatement: No(3) Number of shares issued and outstanding (common shares)
1. Number of shares issued and outstanding as of the end of the period (including treasury stock)
As of February 28, 2015: 29,331,356 shares
As of February 28, 2014: 29,331,356 shares
2. Number of treasury stock
As of February 28, 2015: 2,752,078 shares
As of February 28, 2014: 1,920,288 shares
3. Average number of shares for the year
FY2014: 26,982,906 shares
FY2013: 27,353,992 shares
Notes:
1. The number of recorded treasury stock is inclusive of 104,800 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust Account as of the end of the fiscal year.
2. For additional information on the basic number of shares used to calculate consolidated net income per share,please refer to “Per Share Information” on page 22.

(Reference) Non-Consolidated Performance
1. Non-Consolidated Performance for FY 2014 (March 1, 2014 to February 28, 2015)(1) Non-Consolidated Business Results(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues
Millions of yen%

Operating Income
Millions of yen

Ordinary Income%

Millions of yen%

Net Income
Millions of yen%

FY 2014

1,990

20.5

1,428

31.2

1,381

28.9

1,131

24.9

FY 2013

1,651

8.4

1,088

11.4

1,071

12.6

906

13.0

Yen

Net Income Per Share(Diluted)Yen

FY 2014

40.26

40.20

FY 2013

31.83

31.79

Net Income per Share― 2 ―(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 28, 2015

36,163

22,62562.4

818.07

As of February 28, 2014

36,79024,39266.2

854.29(Reference) Shareholders’ equity: As of February 28, 2015: ¥22,582 million

As of February 28, 2014: ¥24,373 million

Regarding the Status of Review Procedure Implementation
This financial report for the fiscal 2014 is not subject to the review procedures stipulated in the Financial
Instruments and Exchange Act of Japan. As of the date of disclosure of this report, the review procedures forthe financial statements under the Financial Instruments and Exchange 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 basedon 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 the information from page 6.

― 3 ―Contents
1.

ANALYSIS of OPERATING RESULTS and FINANCIAL POSITION

5(1)

Analysis of Operating Results

5(2)

Analysis of Financial Position

7(3)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2014 and Fiscal 2015

7

2.

MANAGEMENT POLICIES

8

3.

CONSOLIDATED FINANCIAL STATEMENTS

10

(1)

Consolidated Balance Sheets

10

(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

12

Consolidated Statements of Income

12

Consolidated Statements of Comprehensive Income

13

(3)

Consolidated Statements of Changes in Net Assets

14

(4)

Consolidated Statements of Cash Flows

16

(5)

Notes to Consolidated Financial Statements

18(Notes Regarding Going Concern Assumptions)18(Changes in Accounting Policies)

18(Segment Information)

18(Per Share Information)

22(Important Subsequent Events)

22

4.

5.

NON-CONSOLIDATED FINANCIAL STATEMENTS

23

(1)

Non-Consolidated Balance Sheets

23

(2)

Non-Consolidated Statements of Income

25

(3)

Non-Consolidated Statements of Changes in Net Assets

26

OTHER

28

― 4 ―

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
In fiscal 2014, the fiscal year ended February 28, 2015, the Japanese economy was bolstered by steady rises inshare prices and improved earnings among certain companies due to the weaker yen. Despite these favorable
conditions, the economic outlook remains uncertain owing mainly to the prolonged slowdown in consumer
spending and the decline in real wages in the face of rising prices.
In the retail industry, business conditions were harsh. Although there was a surge in demand aheadof the consumption tax rate hike, consumer spending slumped thereafter as a result of the growing trend
toward frugality.
Under these circumstances, the YONDOSHI HOLDINGS Group took steps to enhance its corporate
value by practicing CSR-based management in an effort to become a highly trusted corporate group,
strengthening internal controls, providing adequate returns to shareholders, and undertaking medium- tolong-term investments linked to earnings growth throughout fiscal 2014, the final year of its third
medium-term management plan.
Turning to individual business segments, F.D.C. Products Inc. continued to implement measures
aimed at enhancing the value of the 4°C jewelry brand. At the same time, the company took steps tosystematically expand its network and open new 4°C BRIDAL and canal 4°C stores.
AS’TY Inc. worked diligently to bolster its apparel manufacturing business on the back of
production under the China Plus Others strategy. The company also placed particular emphasis on expanding
its ODM business.
MISUZU Co., Ltd. directed its energy toward revitalizing existing stores by strengthening its
planning and marketing capabilities focusing on core brands and implementing a variety of other measures.
Coupled with efforts to rationalize unprofitable stores, the company undertook a host of activities aimed atsecuring the return to the black.
age Co., Ltd. took steps to expand the market by opening stores that would reinforce its dominantposition in the Kansai area focusing mainly on its core PALETTE daily fashion item business. In addition, thecompany newly established a logistics base in the Kansai area with the aim of shortening delivery times andreducing overhead expenses.
Accounting for each of the aforementioned activities, and for the fiscal year under review, operating
revenues amounted to ¥50,726 million (up 3.5% compared with the previous fiscal year). From a profit
perspective, operating income came to ¥5,467 million (up 11.5%), ordinary income was ¥6,216 million (up10.2%, and net income was ¥3,642 million (up 14.4%).
Based on the level of earnings reported, operating income and net income reached record highs forthe third consecutive period. Ordinary income was also an historic high for the fourth consecutive fiscal year.
Note: Operating revenues are the sum total of net sales and other operating revenues.
Results by Business Segment for the Fiscal Year Ended February 28, 2015
The F.D.C. Products GroupOperating Revenues¥
28,537 million (Up 8.6% YoY)
Operating Income¥
4,980 million (Up 13.9% YoY)
In the fiscal year under review, the F.D.C. Products group was successful in promoting its new material
Eternal Silver lineup of items while expanding other offerings under the mainstay 4°C jewelry brand. At thesame time, active steps were taken to open new 4°C BRIDAL and canal 4°C stores. Thanks largely to theseendeavors, the F.D.C. Products group reported record highs in operating revenues and operating income.
The AS’TY GroupOperating Revenues¥
8,787 million (Down 3.5% YoY)
Operating Income¥
422 million (Down 24.3% YoY)
The AS’TY group continued to strengthen its project planning capabilities in its apparel manufacturingbusiness. Despite initiating measures aimed at improving profit margins by shifting production to Bangladesh,
operating revenues and operating income fell below the levels recorded in the previous fiscal year due mainly
to the impact of the weak yen.
MISUZU Co., Ltd.
Operating Revenues
Operating Income¥¥

5,344 million
14 million(Down 9.1% YoY)
(—)

― 5 ―

MISUZU Co., Ltd. worked diligently to rationalize unprofitable stores while strengthening promotional
activities designed to reinvigorate existing stores and reducing overhead expenses. For the fiscal year underreview, operating revenues declined year on year. In cost, the company reported a return to the black on an
operating income basis.
age Co., Ltd.
Operating Revenues¥
8,057 million (Up 4.1% YoY)
Operating Income¥
86 million (Down 46.3% YoY)
age Co., Ltd. reported a year-on-year increase in operating revenues due mainly to expanded store openings for themainstay PALETTE brand daily fashion item business. As the RAPPORT brand retail membership sale businessstruggled and steps were taken to withdraw from the LOU brand business, however, operating income declined.
Outlook
Looking ahead, the Japanese economy is projected to experience a continued modest upturn. This is due to avariety of factors including an increase in corporate sector earnings from the positive flow-on effects of thegovernment’s economic policies. In contrast, there are signs of downside risk with respect to conditions
overseas. As a result, uncertainties continue to plague the outlook for the future.
In the retail sector, personal consumption is expected to remain weak. This largely reflects theforecast continued trend toward frugality stemming from consumers’ perceptions and the need to protect their
daily lives. Taking these trends into consideration, we believe that difficult conditions will continue to linger
throughout our operating environment.
Against this backdrop, the YONDOSHI HOLDINGS Group will launch its fourth medium-term
management plan with the aim of becoming a century’s old company and brand by nurturing human resources,
bolstering our product capabilities, and grasping market trends. As a part of efforts to enhance its corporate
value, the Group will also practice CSR-based management with the aim of becoming a highly trusted
corporate group, strengthen internal controls, provide adequate returns to shareholders, and undertake mediumto long-term investments linked to earnings growth.
Moving forward, the YONDOSHI HOLDINGS Group will endeavor to create cross-sectional
synergies in a bid to generate results against issues that impact the Group as a whole. With this in mind, we arepushing forward the Group Strategy Promotion Project.

Business Vision(1) The F.D.C. Products group: Ensure further growth in the SPA-type jewelry business by promoting achannel strategy and expanding market zones as well as items.
(2) The AS’TY group: Expand the apparel manufacturing business while rebuilding the wholesale
business.
(3) MISUZU Co., Ltd.: Rebuild the SPA-type apparel business by integrating brands.
(4) age Co., Ltd.: Expand the daily fashion item business by increasing the profile and visibilityof the PALETTE brand.
(5) Enhance the 4°C brand value(6) Expand the EC business(7) Advance an overseas retail strategy
Organizational Vision(1) Promote a Group synergy structure(2) Promote the development of Group human resources(3) Enhance and strengthen the Group staff function(4) Strengthen the Group business management function(5) Promote management that takes into consideration work-life balance
Accounting for each of these factors, the YONDOSHI HOLDINGS Group is projecting record highs inrevenues and earnings. In specific terms, operating revenues are expected to reach ¥52,500 million, operating
income to total ¥5,800 million, ordinary income to climb to ¥6,700 million, and net income to come in at¥4,100 million on a consolidated basis for the fiscal year ending February 29, 2016.

― 6 ―(2) Analysis of Financial Position
The Status of Assets, Liabilities, and Net Assets
Total assets as of the end of the fiscal year under review stood at ¥60,990 million, ¥2,511 million higher thanthe balance as of the end of the previous fiscal year. The major movements were increases in investment
securities of ¥4,401 million and cash and deposits of ¥1,309 million, which were partly offset by such factors
as a decrease in short-term investment securities of ¥2,850 million.
Total liabilities amounted to ¥15,159 million as of February 28, 2015. This represented an increaseof ¥817 million year on year. The major movement was an increase of ¥304 million in deferred tax liabilities.
Net assets as of the fiscal year-end stood at ¥45,830 million, an increase of ¥1,694 million comparedwith the balance as of the end of the previous fiscal year. This was largely attributable to the increase inretained earnings of ¥2,685 million.
Cash Flows
On a consolidated basis, cash and cash equivalents as of the end of the period under review (February 28,2015) stood at ¥3,952 million, a decrease of ¥140 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥4,329 million. This was a decrease of ¥855 million
compared with the previous fiscal year. The major cash inflow for the period came from net income before
income taxes totaling ¥6,017 million. The principal cash outflow was income taxes paid of ¥2,250 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities was ¥1,184 million, up ¥1,204 million compared with the previous fiscal
year. The major cash outflow was from the purchase of property, plant and equipment of ¥1,590 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities was ¥3,298 million, down ¥2,474 million compared with the previous
fiscal year. The major cash outflows were the purchase of treasury stock of ¥2,083 million and cash dividends
paid of ¥957 million.
(Reference) Trends in the YONDOSHI HOLDINGS Group’s cash flow indicators are provided in thefollowing table.
Fiscal 2011
Fiscal 2012
Fiscal 2013
Fiscal 2014
Shareholders’ equity ratio (%)
75.9
77.1
75.4
75.1
Shareholders’ equity ratio based on
41.9
51.3
73.8
87.9
market capitalization (%)
Cash flow to interest-bearing debt
0.2
0.3
0.2
0.2
ratio (Year)
Interest coverage ratio (Times)
143.9
231.1
1,851.9
2,524.96
Notes:
Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio based on market capitalization: Market capitalization / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest payments
 Each indicator is calculated based on figures from consolidated financial statements.
 Market capitalization is calculated based on the number of shares issued and outstanding at the end of the period after
deducting treasury stock.
 Interest-bearing debt includes all interest-bearing debt recorded under liabilities in the consolidated balance sheets.
 Cash flow from operating activities is taken from net cash provided by (used in) operating activities in the consolidated
statements of cash flows. Interest payments are taken from cash paid for interest in the consolidated statements of cash
flows.

(3) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2014 and Fiscal 2015
The YONDOSHI HOLDINGS Group places the appropriation of profits to shareholders as a key management
priority. As a result, the Group strives to deliver stable and sustainable cash dividends. At the same time, theGroup adopts a flexible policy toward the purchase of treasury stock as a part of comprehensive efforts toincrease the level of returns to shareholders.
Based on the aforementioned policy, YONDOSHI HOLDINGS plans to pay a fiscal year-end cash
dividend of ¥16 per common share. Together with the interim cash dividend paid of ¥16 per common share,― 7 ―the full fiscal year cash dividend for fiscal 2014 will therefore come in at ¥32 per common share. Looking at
dividends for fiscal 2015, the Company plans to pay an interim and fiscal year-end cash dividend of ¥20 per
common share for a full fiscal year cash dividend of ¥40 per common share.
In addition to the appropriation of profits through cash dividends, YONDOSHI HOLDINGS has
established a shareholder special benefit plan. Shareholders of record as of the end of the period can choose
from three benefit options including shareholder gift certificates, Group products and a donation to the Japan
Water Forum, which is introduced as a CSR-oriented benefit.
Furthermore, in an effort to better prepare the Group for the road ahead and to pursue businessdevelopment, YONDOSHI HOLDINGS will continue to enhance profitability and reinforce the Group’s
management and business platforms while fulfilling the expectations of shareholders going forward. At thesame time, the Group will take into consideration the internal working capital required to reinforce its
management structure in response to an increasingly competitive environment, cultivate new markets, develop
new brands and pursue business development through a variety of vehicles including M&A.
2. Management Policies(1) Basic Management Policies
The YONDOSHI HOLDINGS Group engages in business development activities based on four coremanagement philosophies.
We are committed to:
1. becoming a company that inspires trust and confidence among its customers
2. fostering and fulfilling the dreams of our employees
3. contributing to the prosperity and well-being of society, and
4. realizing the expectations of shareholders.
With the 4ºC brand at the heart of its business activities, YONDOSHI HOLDINGS is committed to
becoming a company that is defined by its ability to create new trends in global fashion. We are committed toputting our heart and soul into anticipating customers’ needs and forever enhancing customers’ lifestyles.
With a deep respect for people and a fearless stance toward innovative change, the YONDOSHIHOLDINGS Group places the utmost importance on a corporate culture that continues to push the limits.
The efforts are grounded in the aspiration to bring a smile to the faces of all customer while inspiring
their hearts and minds.
(2) Target Operating Indicators
Under its fourth medium-term management plan, which begins in the fiscal year ending February 29, 2016,
YONDOSHI HOLDINGS plans to follow a path of “Challenge and Evolution.” In specific terms, theCompany has identified the numerical vision of achieving consolidated net sales of ¥60 billion or more,ordinary income of ¥8.0 billion or more, and an ROE of 10% or higher. Moving forward, we will advancebusiness strategies and implement a variety of measures aimed at improving profitability, increasing theefficiency of our investments, and effectively utilizing all available funds.
(3) Medium- to Long-Term Operating Strategies
Details of the Company’s medium- to long-term operating strategies are outlined in “1. Analysis of Operating
Results and Financial Position (1) Analysis of Operating Results (Outlook)” on page 6.
(4) Pending Issues
The YONDOSHI HOLDINGS Group will work diligently to overcome the following issues in an effort tostrengthen its ability to address changes in the market and establish robust competitive advantage.
i. The F.D.C. Products group
The F.D.C. Products group will continue to pursue steady growth while further increasing its
operating income. To this end, the group will implement a variety of measures aimed at developing its
business, focusing mainly on enhancing the value of the 4°C jewelry brand, and expanding newmarkets.
ii. The AS’TY group
The AS’TY group will endeavor to secure stable operating income by expanding its apparel
manufacturing business and rebuilding its wholesale business.

― 8 ―iii. MISUZU Co., Ltd.
MISUZU will expand operating income by promoting merchandising reform and strengthening its
store operating capabilities in order to establish an apparel SPA business.
iv. age Co., Ltd.
age will expand operating income by opening PALETTE stores that will reinforce its dominantposition in the Kansai area and increasing its profile and visibility in the market.

― 9 ―3. CONSOLIDATED FINANCIAL STATEMENTS(1) Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2014

February 28, 2015

(As of February 28, 2014)(As of February 28, 2015)

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade643,415

1,952,933

2,952,219

3,451,619

Short-term investment securities

4,850,000

2,000,000

Merchandise and finished goods

6,819,273

7,383,018

Work in process

728,965

871,733

Raw materials and supplies

678,745

723,203

Deferred tax assets

618,437

482,082

Advance payments-trade

6,025

2,465

Accounts receivable-other

73,666

142,460

Other

251,918

301,863

Allowance for doubtful accounts(4,233)(7,625)

17,618,434

17,303,755

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

5,485,560

5,546,145

Land

5,549,208

5,528,465

Lease assets, net

187,635

285,754

Construction in progress

34,600389,900

Other, net

537,300

752,733

11,794,305

12,502,999

Goodwill

6,206,310

5,709,806

Lease assets

582,497459,992

Total property, plant and equipment
Intangible assets:

Right of trademark

763

1,453

77,554

103,920

6,867,126

6,275,172

Investment securities

15,623,836

20,025,792

Guarantee deposits

344,312346,405

Long-term loans receivable

22,57622,268Deferred tax assets

406,543374,736

750,917745,032

Other
Total intangible assets
Investments and other assets:

Real estate for investment, net
Prepaid pension cost

2,077,497－－

614,916

Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and otherOther

2,523,068

2,356,233

550,568

87,858480,131451,856

Allowance for doubtful accounts(580,756)(116,688)

Total investments and other assets

22,198,696

24,908,410

Net defined benefit asset

Total noncurrent assets
Total assets― 10 ―

40,860,128

43,686,583

58,478,562

60,990,338

(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2014

February 28, 2015

(As of February 28, 2014)(As of February 28, 2015)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

4,515,638

Short-term loans payable

4,170,142－

48,310241,069

278,268

Income taxes payable

1,366,588

1,399,367

Provision for bonuses

425,726

355,684

Provision for directors’ bonuses

44,25041,946Other

3,267,051

4,093,625

Total current liabilities

9,860,324

10,387,344

Lease obligations

Noncurrent liabilities:
Long-term loans payable

150,930－

Lease obligations

596,616

530,330

Long-term guarantee deposited
Deferred tax liabilities
Provision for retirement benefits
Net defined benefit liability

295,476

319,085

1,520,356

1,824,453

537,167－－

614,881

Provision for directors’ retirement benefits

339,728

385,296

Asset retirement obligations

942,180

1,002,570

Other99,493

95,727

Total noncurrent liabilities
Total liabilities

4,481,950

4,772,345

14,342,274

15,159,689

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,322,104

18,226,705

Retained earnings

24,364,402

27,049,761

Treasury stock(1,504,089)(3,284,842)

Total shareholders’ equity

43,668,937

44,478,145

Valuation difference on available-for-sale securities

648,981

1,481,751

Deferred gains or losses on hedges(10,415)

13,339

Revaluation reserve for land

(233,476)(233,476)

Accumulated other comprehensive income:

Foreign currency translation adjustments

42,83885,054Remeasurements of defined benefit plans－(37,476)

447,928

1,309,192

Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets― 11 ―

19,421

43,311

44,136,288

45,830,648

58,478,562

60,990,338

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Fiscal 2013

Fiscal 2014

(March 1, 2013 to(March 1, 2014 to

February 28, 2014)

February 28, 2015)

Net sales

48,140,315

49,868,310

Cost of Sales

21,261,457

21,789,099

Gross profit

26,878,858

28,079,211

862,868

857,955

Other operating revenue
Operating gross profit

27,741,727

28,937,167

Selling, general and administrative expenses

22,835,642

23,469,265

Operating income

4,906,084

5,467,901

Non-operating income
Interest income

9,272

14,116

Dividends received
Equity in earnings of affiliates

72,14374,975497,201

493,479

Rent of real estate for investment

99,237

101,940

Foreign exchange gains

23,17831,483

Other

51,59681,805

Total non-operating income

752,630

797,801

Interest expenses

2,826

1,714

Loss on insurance cancellation

1,925

－

Depreciation on investments in real estate

6,101

5,968

Management cost on real estate for investment

2,063

2,046

－

35,364Non-operating expenses

Commission for purchase of treasury stock
Other

2,940

3,951

Total non-operating expenses

15,85749,046

5,642,858

6,216,656

Gain on sales of noncurrent assets

12,16347,797

Gain on sales of real estate for investment

21,974－Gain on sales of golf memberships

1,428

－

Gain on Liquidation of Subsidiaries and Affiliates’ Stocks－

104,118

Other

－

750

35,566

152,665

Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Impairment loss
Loss on closing of stores
Other

－

8,140

239,675

291,939

3,513

43,111－

8,880

Total extraordinary losses

243,188352,072

Net income before income taxes

5,435,236

6,017,250

Income taxes ― current

1,957,454

2,262,588

Income taxes ― deferred

293,808

112,133

Total income taxes

2,251,262

2,374,721

Income before minority interests

3,183,973

3,642,528

Minority interests in income (loss)
Net income― 12 ―(0)－3,183,974

3,642,528

Consolidated Statements of Comprehensive Income(Thousands of yen)
Fiscal 2013

Fiscal 2014

(March 1, 2013 to(March 1, 2014 to

February 28, 2014)

February 28, 2015)

Income before minority interests

3,183,973

3,642,528

Other valuation difference on available-for-sale securities

256,297625,870

Deferred gains or losses on hedges
Foreign currency translation adjustments(25,323)

23,59968,07742,21639,052207,054

338,1033,522,077

898,740
4,541,268

3,522,077

4,541,268(0)－

Other comprehensive income

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― 13 ―

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2013 (March 1, 2013 to February 28, 2014)(Thousands of yen unless otherwise stated)

Balance at the end of previous period

Shareholders’ equity
Treasury stock
Treasurystock
Retained(held byTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,300,303

21,891,593(1,463,511)(207,422)

Total
treasury
stock

Total
shareholders’equity(1,670,933)

41,007,484

Changes of items during the period
Dividends from surplus(682,132)(682,132)

Net income
Increase in retained earnings resulting
from change of consolidated
subsidiaries
Purchase of treasury stock

3,183,974

3,183,974

2,002

2,002

Disposal of treasury stockReversal of revaluation reserve for
land
Sales of treasury stock from Employee
Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period

21,800

(554)

(554)

(554)

108,148

108,148

129,949(31,036)(31,036)
59,25059,25059,250—21,8002,472,808

107,594

59,250166,8442,661,453

2,486,520

18,322,104

24,364,402(1,355,917)(148,172)(1,504,089)

43,668,937(Thousands of yen unless otherwise stated)
Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Increase in retained
earnings resulting
from change ofconsolidated
subsidiaries
Purchase of treasury
stock
Disposal of treasury
stock
Reversal ofrevaluation reserve
for land
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailable-for-sale
securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Total
accumulated
othercomprehensive
income352,470

16,070(264,512)(25,239)78,789Subscription
rights tosharesMinority
interests

Total net
assets19,195

1,171

41,106,639(682,132)
3,183,974

2,002

(554)
129,949
31,03631,036—59,250296,511(26,485)—

68,077338,103226(1,171)

337,158

296,511(26,485)

31,036

68,077369,139226(1,171)

3,029,648

648,981(10,415)(233,476)

42,838447,928

19,421—

44,136,288― 14 ―

Fiscal 2014 (March 1, 2014 to February 28, 2015)(Thousands of yen unless otherwise stated)

Balance at the end of previous period

Shareholders’ equity
Treasury stock
Treasurystock
Retained(held byTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,322,104

24,364,402(1,355,917)(148,172)

Total
treasury
stock

Total
shareholders’equity(1,504,089)

43,668,937

Changes of items during the period
Dividends from surplus(957,168)(957,168)

Net income

3,642,528

3,642,528

Purchase of treasury stock
Disposal of treasury stock
Net changes in commission forpurchase of treasury stock fromaffiliates accounted for by equity
methodChange in equity in affiliates
accounted for by equity
method-treasury stock
Sales of treasury stock from Employee
Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period(2,083,827)(2,083,827)(2,083,827)

56,59956,59968,995

12,395(107,794)(107,794)
197,652
197,652

197,652

48,822

48,822

48,822—(95,398)

2,685,359(1,829,574)

48,822(1,780,752)

809,2072,486,520

18,226,705

27,049,761(3,185,492)(99,350)(3,284,842)

44,478,145(Thousands of yen unless otherwise stated)
Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasurystock
Net changes incommission forpurchase of treasury
stock from affiliates
accounted for byequity method
Change in equity inaffiliates accounted
for by equity
method-treasury stock
Sales of treasury stockfrom Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeSubscrip-tion
rights tosharesTotal net
assets648,981(10,415)(233,476)

42,838—447,928

19,421

44,136,288(957,168)
2,083,827
68,995(107,794)

197,652

48,822

832,769

23,754—42,216(37,476)

861,263

23,889885,153

832,769

23,754—42,216(37,476)

861,263

23,8891,694,360

1,481,751

13,339(233,476)

85,054(37,476)

1,309,192

43,31145,830,648― 15 ―

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal 2013

Fiscal 2014

(March 1, 2013 to(March 1, 2014 to

February 28, 2014)

February 28, 2015)

Cash Flows from Operating Activities:
Net Income before income taxes

5,435,236

6,017,250

Depreciation and amortization

1,026,676

1,135,407

Impairment loss

239,675

291,939

Amortization of goodwill

520,643496,504679(460,675)

Increase (decrease) in provision for bonuses(127,350)(70,041)

Increase (decrease) in provision for retirement benefits(83,629)――

1,502,819

Increase (decrease) in other provision(56,074)

43,264

Interest and dividends income(81,416)(89,091)

Increase (decrease) in allowance for doubtful accounts

Increase (decrease) in net defined benefit liability

Interest expenses

2,826

1,714

(497,201)(493,479)

Foreign exchange losses (gains)(4,355)(2,022)

Loss (gain) on sales of noncurrent assets(12,163)(39,657)

Loss (gain) on sales of real estate for investment

Equity in (earnings) losses of affiliates(21,974)―

Loss (gain) on liquidation of subsidiaries and affiliates’ stocks―(104,118)

Decrease (increase) in notes and accounts receivable ― trade201,159(497,679)(1,457,010)(741,862)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ― trade705,260(348,193)

Increase (decrease) in accrued consumption taxes

52,295344,900

Increase (decrease) in advances received

500,753(151,839)

Decrease (increase) in other assets

150,267(69,996)

Increase (decrease) in other liabilities(58,569)(387,319)

Subtotal

6,435,728

6,377,821

Interest and dividends income received

190,181204,415Interest expenses paid

(2,799)(1,714)

Income taxes paid

(1,437,902)(2,250,920)

Net cash provided by (used in) operating activities

5,185,207

4,329,603― 16 ―

(Thousands of yen)
Fiscal 2013

Fiscal 2014

(March 1, 2013 to(March 1, 2014 to

February 28, 2014)

February 28, 2015)

Cash Flows from Investing Activities:
Purchase of property, plant and equipment(1,048,529)(1,590,069)

Proceeds from sales of property, plant and equipment

128,560

62,000Purchase of intangible assets(19,089)(53,944)

Purchase of securities(1,400,000)(500,000)―

1,900,000

Purchase of investment securities(17,077)(1,216,996)

Proceeds from sales of real estate for investment

63,361―

Payments of long-term loans receivable(9,753)(7,774)

Collection of long-term loans receivable

15,4598,083

Purchase of long-term prepaid expenses(70,773)(46,044)―

104,118

Other payments(388,201)(241,595)

Other proceeds

356,743

397,469(2,389,299)(1,184,752)(92,230)(102,620)

Proceeds from redemption of securities

Proceeds from liquidation of subsidiaries and affiliates’ stocks

Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:
Repayment of long-term loans payable(554)(2,083,827)

Proceeds from sales of treasury stock

Purchase of treasury stock

114,975

62,985

Cash dividends paid

(687,001)(957,168)

Other payments(159,113)(217,816)

Net cash provided by (used in) financing activities(823,924)(3,298,446)

9,662

13,114

Net increase (decrease) in cash and cash equivalents

1,981,646(140,482)

Cash and cash equivalents at beginning of period

2,111,769

4,093,415

Cash and cash equivalents at end of period

4,093,415

3,952,933

Effect of exchange rate change on cash and cash equivalents― 17 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
Not applicable.
(Changes in Accounting Policies)(Application of the Accounting Standard for Retirement Benefits)
The Company has applied the Accounting Standard for Retirement Benefits (Accounting Standards Board ofJapan (ASBJ) Statement No. 26 of May 17, 2012; hereinafter referred to as the “Standard”) and the Guidanceon Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25 of May17, 2012; hereinafter referred
to as the “Guidance”) from the end of the fiscal year ended February 28, 2015 (excluding provisions stated inarticle 35 of the Standard and article 67 of the Guidance). Under this policy, pension assets are deducted fromretirement benefit obligations and the net amount is recognized as net retirement benefit asset and net
retirement benefit liability. Differences of unrecognized actuarial gains and losses are recognized as net
retirement benefit asset and net retirement benefit liability.
The adoption of the Standard and Guidance is subject to the transitional treatment stipulated under
Article 37 of the Standard. Accordingly, the impact of the abovementioned revision in calculation methods
was included in remeasurements of retirement benefit plans under accumulated other comprehensive income asof the end of the fiscal year under review.
As a result, and as of February 28, 2015, YONDOSHI HOLDINGS recorded net retirement benefit
asset of ¥614,916 thousand and net retirement benefit liability of ¥614,881 thousand. In addition, accumulated
other comprehensive income decreased by ¥37,476 thousand.
Meanwhile, the impact on net asset per share was immaterial.

(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofmanagement resources and evaluate business results.
As a comprehensive fashion company, the YONDOSHI HOLDINGS Group engages inbusiness activities through four core operating companies. These are F.D.C. Products Inc., AS’TY
Inc., MISUZU Co., Ltd. and age Co., Ltd.
The individual business segments of the YONDOSHI HOLDINGS Group are fundamentallycomprised of its consolidated subsidiaries. On this basis, the Company’s four reporting segments are the
F.D.C. Products group, the AS’TY group, MISUZU and age.
The F.D.C. Products group is mainly engaged in brand SPA activities dealing ostensibly with 4°C
jewelry as well as restaurant business operations.
The AS’TY group undertakes apparel manufacturing business focusing primarily on its ODM
activities while at the same time engaging in apparel wholesale and developer business activities.
MISUZU operates largely in the ladies’ apparel SPA business.
age is active in retail operations primarily in the fashion sector focusing mainly on Western Japan.

2. Calculation Methods for Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
The accounting treatment methods for reporting segments are generally the same as those adopted for
preparing consolidated financial statements. Profits for reporting segments are operating income amounts.
Intrasegment sales and transfers are based on current market prices.

― 18 ―

3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)(Thousands of yen)
Reporting Segments

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
statement ofincomeF.D.C.
Products
group

AS’TY
group

MISUZUage

Total

26,227,261

9,107,549

5,881,097

7,737,277

49,003,184―

49,003,184

43,084

1,445,808

24,225240,299

1,753,417(1,753,417)―

26,320,345

10,553,357

5,905,322

7,977,577

50,756,602(1,753,417)

49,003,184

Segment income (loss)

4,374,877

557,846(69,225)

160,497

5,023,995(117,910)

4,906,084

Segment assets

25,170,216

18,988,089

2,267,796

2,561,697

48,987,799

9,490,762

58,478,562

Depreciation

544,470

245,310

146,572

57,963994,315

26,256

1,020,572

Increase in property, plantand equipment andintangible assets

821,790

130,960

160,951

22,283

1,135,986

795

1,136,781

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers
Total

Other items

Notes:
1. (1) The adjustment amount of minus ¥117,910 thousand for segment income mainly includes amortization of goodwill
totaling minus ¥520,643 thousand and general administrative expenses that are not attributable to individual reporting
segments amounting to minus ¥589,094 thousand.
(2) The adjustment amount of ¥9,490,762 thousand for segment assets is mainly comprised of corporate assets of¥5,774,496 thousand and the balance of unamortized goodwill of ¥6,206,310 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥26,256 thousand for depreciation and amortization relates to corporate assets that are not
attributable to individual reporting segments.
(4) The adjustment amount of ¥795 thousand for the amount of property, plant and equipment as well as intangible assets
increase relates to corporate assets that are not attributable to individual reporting segments.
2.
Segment income (loss) matches operating income recorded on the consolidated statements of income.

Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)(Thousands of yen)
Reporting Segments

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
statement ofincomeF.D.C.
Products
group

AS’TY
group

MISUZUage

Total

28,537,113

8,787,244

5,344,775

8,057,133

50,726,266―

50,726,266

50,3301,657,587

20,521

285,728

2,014,167(2,014,167)

―

Total

28,587,444

10,444,831

5,365,296

8,342,861

52,740,434(2,014,167)

50,726,266

Segment income

4,980,999

422,436

14,05986,1505,503,646(35,744)5,467,901

Segment assets

27,873,136

20,132,567

2,228,395

2,505,023

52,739,123

8,251,215

60,990,338

651,483

249,692

119,285

81,056

1,101,518

27,8281,129,346

1,209,843

415,061

26,39024,966

1,676,261―

1,676,261

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Other items
Depreciation
Increase in property, plantand equipment andintangible assets― 19 ―

Notes:1. (1) The adjustment amount of minus ¥35,744 thousand for segment income mainly includes amortization of goodwill
totaling minus ¥496,504 thousand and general administrative expenses that are not attributable to individual reporting
segments amounting to minus ¥598,882thousand.
(2) The adjustment amount of ¥8,251,215 thousand for segment assets is mainly comprised of corporate assets of¥4,357,769 thousand and the balance of unamortized goodwill of ¥5,709,806 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥27,828 thousand for depreciation and amortization relates to corporate assets that are not
attributable to individual reporting segments.
2. Segment income matches operating income recorded on the consolidated statements of income.

(Related Information)
Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Informationa.

Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.

b.

Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of
the Company’s property, plant and equipment in the consolidated balance sheets, geographical information has
been omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Informationa.

Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.

b.

Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of
the Company’s property, plant and equipment in the consolidated balance sheets, geographical information has
been omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

― 20 ―

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)(Thousands of yen)
Reporting Segments
F.D.C.
Products
group

Impairment loss

115,048

AS’TY
group

MISUZU

9,809

69,301

age

Total

45,516239,675

Adjustment
amount―Total

239,675

Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)(Thousands of yen)
Reporting Segments
F.D.C.
Products
group

Impairment loss

236,048

AS’TY
group
6,453

MISUZU42,498

age
6,939

Total

Adjustment
amount291,939―

Total

291,939(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥520,643 thousand and ¥6,206,310 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥496,504 thousand and ¥5,709,806 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.

(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)
Not applicable.
Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)
Not applicable.

― 21 ―

(Per Share Information)(Yen)
Fiscal 2013
(March 1, 2013 to February 28, 2014)

1.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

Fiscal 2014
(March 1, 2014 to February 28, 2015)

1,609.45
116.40116.241.
2.
3.

1,722.67
134.99134.78

Net assets per share
Earnings per share
Net income per share (diluted)

Note: The basis for calculating earnings per share and net income per diluted share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2013
(March 1, 2013 to
February 28, 2014)

Total earnings per share
Net income
Net income applicable to shareholders of common stock
Net income applicable to common stock
Average number of common shares (Shares)

Net income per share adjusted for diluted shares
Adjustment to net income per share
Increased number of common shares (Shares)
Description of the diluted shares not included in the calculationof net income per share adjusted for diluted shares due to their
non-dilutive effect from the previous fiscal year

Fiscal 2014
(March 1, 2014 to
February 28, 2015)

3,183,974—
3,183,974
27,353,992

3,642,528—
3,642,528
26,982,906—
38,012
New share subscription rights
issued on June 12, 2013
5th issuance of new sharesubscription rights
Common stock:
118,400 shares—
42,236
New share subscription rights
issued on July 24, 2013
6th issuance of new sharesubscription rights
Common stock:36,700 shares
New share subscription rights
issued on July 24, 2014
7th issuance of new sharesubscription rights
Common stock:24,800 shares

3. The basis for calculating net assets per share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2013
(March 1, 2013 to
February 28, 2014)

Total net asset recorded on consolidated balance sheets
Deduction amount of total net asset recorded on consolidatedbalance sheets
Subscription rights to shares
Minority interests
Net assets applicable to common stock
Number of common stock utilized for the calculation of net
assets per share (Shares)

Fiscal 2014
(March 1, 2014 to
February 28, 2015)

44,136,288

45,830,648

19,421

43,311(19,421)(—)
44,116,866(43,311)(—)
45,787,337

27,411,068

26,579,278

4. The Company’s shares held by the trust-type employee ownership plan are recognized as treasury stock inconsolidated financial statements. As a result, the number of common shares as of the end of the period used to
calculate the aforementioned net assets per share amount as well as the average number of shares for the period used
to calculate the aforementioned earnings per share amount are after deducting the Company’s shares held by thetrust-type employee ownership plan.

(Important Subsequent Events)
Not applicable.

― 22 ―

4. NON-CONSOLIDATED FINANCIAL STATEMENTS(1) Non-Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2014

February 28, 2015

(As of February 28, 2014)(As of February 28, 2015)

ASSETS
Current assets:
Cash and time deposits
Short-term investment securities
Deferred tax assets
Short-term loans receivable to subsidiaries and affiliates
Accounts receivable-otherOther

234,823

1,539,159

4,850,000

2,000,000

13,53014,493

1,336,672

1,024,870

109,057

145,840

6,484

7,541

6,550,568

4,731,905

Buildings, net

681

567

Tools, furniture and fixtures, net

619

368

Total current assets
Noncurrent assets:
Property, plant and equipment:

Lease assets

3,600

900

Total property, plant and equipment

4,901

1,836

Intangible assets:
Software190

114

Lease assets

75,03250,344

Total intangible assets

75,22250,458Investments and other assets:
Investment securities
Stocks of subsidiaries and affiliates

655,382

1,856,518

29,204,180

29,204,180

Investments in capital of subsidiaries and affiliates

172,716

75,190Long-term loans receivable from subsidiaries and81,520166,964

affiliates
Long-term loans receivable from employees—

694

Deferred tax assets

29,62970,250Other

16,433

5,876

30,159,861

31,379,674

Total investments and other assets
Total noncurrent assets
Total assets― 23 ―

30,239,984

31,431,968

36,790,553

36,163,873

(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2014

February 28, 2015

(As of February 28, 2014)(As of February 28, 2015)

LIABILITIESCurrent liabilities:
Short-term loans payable

11,950,438

Current portion of long-term loans payable

13,132,793—

48,310

Lease obligations

28,791

27,093

Accounts payable-other

36,34470,732

Accrued expenses

11,2709,193

Income taxes payable

46,60160,165

Provision for bonuses

13,67011,900

Provision for directors’ bonuses

13,15014,500

Other
Total current liabilities

8,970

35,27012,109,237

13,409,957

Noncurrent liabilities:
Long-term loans payable

150,930—

Lease obligations

54,35927,265

Provision for retirement benefits

3,155

3,329

Provision for directors retirement benefits

80,10097,400Total noncurrent liabilities
Total liabilities

288,544

127,994

12,397,781

13,537,952

2,486,520

2,486,520

14,838,777

14,838,777

NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Legal reserve
Other capital surplus

21,80034,196

Total capital surplus

14,860,578

14,872,973

417,300

417,300

6,794,500

6,794,500

Retained earnings:
Profit reserve
Other retained earnings
Other reserve
Retained earnings brought forward

511,563686,1027,723,363

7,897,902

Treasury stock(697,210)(2,675,616)

Total shareholders’ equity

24,373,251

22,581,780

Valuation difference on available-for-sale securities

98

829

Total valuation and translation adjustments

98

829

19,421

43,311

24,392,771

22,625,921

36,790,553

36,163,873

Total retained earnings

Valuation and translation adjustments:

Subscription rights to shares
Total net assets
Total liabilities and net assets― 24 ―

(2) Non-Consolidated Statements of Income(Thousands of yen)
Fiscal 2013

Fiscal 2014

(March 1, 2013 to(March 1, 2014 to

February 28, 2014)

February 28, 2015)

Operating revenue

1,651,880

1,990,125

Operating gross profit

1,651,880

1,990,125

562,926

561,728

1,088,954

1,428,396

15,255

19,431

Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income

5674

Foreign exchange losses

7,264

15,112Gain on forfeiture of unclaimed dividends

1,734

1,632

Other
Total Non-operating income

385

608

24,69536,858Non-operating expenses
Interest expenses
Commission for purchase of treasury stock
Other

42,29048,688—35,364231—

42,521

84,052

1,071,127

1,381,202—

97,525

Total extraordinary loss—

97,525

Income before income taxes

1,071,127

1,283,677

Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on valuation of investments in capital of subsidiaries
and affiliates

Income taxes ― current

153,400

193,957

Income taxes ― deferred

11,389(41,988)

Total income taxes

164,790

151,969

Net income

906,337

1,131,708― 25 ―

(3) Non-Consolidated Statements of Changes in Net Assets
Fiscal 2013 (March 1, 2013 to February 28, 2014)(Thousands of yen unless otherwise stated)
Shareholders’ equity
Capital surplus
Commonstock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

2,486,520

Retained earnings
Other retained earnings

Other
capitalsurplusLegalreserve

Total capitalsurplus—14,838,777

14,838,777

21,80021,800

Profitreserve

Retainedearnings
brought
forwardGeneralreserve

417,300

6,794,500

Total
retainedearnings

287,358

7,499,158(682,132)(682,132)

906,337

906,337——

21,80021,800——224,204

224,204

2,486,520

14,838,777

21,80014,860,578

417,300

6,794,500

511,563

7,723,363(Thousands of yen unless otherwise stated)
Valuation and translation
adjustments

Shareholders’ equity
Treasury stock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in
items excluding
shareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Treasurystock

Treasurystock(held byEmployee
Stock
Ownership
Trust)

Total
treasurystock(656,644)(207,422)(864,066)

Total
shareholders’equityValuationdifferenceonavailable-for-sale
securities

Total
valuationandtranslation
adjustments

Subscription
rights toshares23,960,389

(218)

(218)

19,195

Total net
assets23,979,365(682,132)(682,132)

906,337

906,337

(554)

(554)

(554)

(554)

108,160

108,160

129,961

129,961

59,25059,25059,25059,250

317

317

226

544

107,605

59,250166,855

412,861

317

317

226

413,405(549,038)(148,172)(697,210)

24,373,251

98

98

19,421

24,392,771― 26 ―

Fiscal 2014 (March 1, 2014 to February 28, 2015)(Thousands of yen unless otherwise stated)
Shareholders’ equity
Capital surplus
Commonstock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

2,486,520

Retained earnings
Other retained earnings

Other
capitalsurplusLegalreserve

14,838,777

Total capitalsurplus21,80014,860,578

12,395

12,395

Profitreserve

Retainedearnings
brought
forwardGeneralreserve

417,300

6,794,500

Total
retainedearnings

511,563

7,723,363(957,168)(957,168)

1,131,708

1,131,708——

12,395

12,395——

174,539

174,5392,486,520

14,838,777

34,196

14,872,973

417,300

6,794,500

686,102

7,897,902(Thousands of yen unless otherwise stated)
Valuation and translation
adjustments

Shareholders’ equity
Treasury stock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in
items excluding
shareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Treasurystock

Treasurystock(held byEmployee
Stock
Ownership
Trust)

Total
treasurystock(549,038)(148,172)(697,210)

Total
shareholders’ equity

Valuationdifferenceonavailable-for-sale
securities

Total
valuationandtranslation
adjustments

Subscription
rights toshares

24,373,251

98

98

19,421(957,168)

Total net
assets24,392,771(957,168)

1,131,708

1,131,708(2,083,827)(2,083,827)(2,083,827)(2,083,827)

56,59956,59968,99568,99548,822

48,822

48,822

48,822731

731

23,88924,620(2,027,227)

48,822(1,976,405)(1,791,470)

731

731

23,889(1,766,849)(2,576,265)(99,350)(2,675,616)

22,581,780

829

829

43,311

22,625,921― 27 ―

5. Other(1) Changes in Managementi. Changes in representative director
Not applicable.
ii. Changes in management as a result of the shift to a company with audit and other committees
structure
Subject to the approval of shareholders to an amendment to the Company’s Articles of Incorporation
at its 65th Annual General Meeting of Shareholders scheduled to be held on May 21, 2015,
YONDOSHI HOLDINGS plans to shift to a company with audit and other committees structure. The
Company then intends to put in place a management group comprised of the following candidate
officers.
Candidate directors (excluding members of the Audit and other committees)
Saishi Kimura
Current Chairman and Representative Director
Hidenori Suzuki
Current President and Representative Director
Satoshi Miyamoto
Currently Executive Director and Executive Officer responsible for AS’TY Inc.
Akihiro Takiguchi
Currently Executive Director and Executive Officer responsible for F.D.C.
Products Inc.
Masahiko Iwamori
Currently Executive Director and Executive Officer responsible for operations,
General Manager of Corporate Planning (concurrent position)
Toshifumi Kurume
Current Director and Executive Officer, General Manager responsible for F.D.C.
Products marketing
Masahiko Nishimura Currently Director and Executive Officer responsible for finance, General
Manager of Finance (concurrent position)
Nobuyuki Hosoda
Currently Director and advisor
Candidate directors (for membership on the Audit and other committees)
Eiji Tasaki
Current Corporate Auditor of the Company
Nobuhiko
Current Outside Corporate Auditor of the Company
Kamimura
Tomoaki Fujimori
Current Outside Corporate Auditor of the Company
Seisui Kamigaki
Current attorney-at-law
Note: Nobuhiko Kamimura, Tomoaki Fujimori, and Seisui Kamigaki are outside director candidates.

― 28 ―