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

Investors’ Presentation
Results for the Fiscal 2019
(The Fiscal Year Ended February 29, 2020)
April 13, 2020

Contents
Ⅰ. Overview and Summary of Fiscal 2019, the Fiscal Year Ended February 29,
2020
Ⅱ. About the New Management Structure
Ⅲ. Strategic Approach for Fiscal 2020
IV. Medium- to Long-Term Initiatives

Saishi Kimura. Chairman and Representative Director・CEO
Akihiro Takiguchi, President and Representative Director・COO
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Contents
Ⅰ. Overview and Summary of Fiscal 2019, the Fiscal Year Ended
February 29, 2020

Ⅱ. About the New Management Structure
Ⅲ. Strategic Approach for Fiscal 2020
Ⅳ．Medium- to Long-Term Initiatives

Overview of Consolidated Operating Results for
Fiscal 2019 (1) Drop in revenue owing mainly to the consumption tax rate hike and theimpact of the Christmas calendar on business activities
 Drop in both operating and ordinary income; increase in net income
Net sales: ¥44,970 million (－4.6% YoY ) Operating income: ¥3,975 million (－20.2% YoY)
Ordinary income: ¥4,312 million (－36.6% YoY) Net income: ¥2,475million (+1.4% YoY)
(Millions of yen)

Net sales
47,11844,970Operating income

Ordinary income

4,984

6,804

Net income
2,440

2,475

3,975
4,312

－4.6%

FY2018－20.2%FY2019FY2018－36.6%FY2019FY2018FY2019

第69期実績
Actual Results 第69期実績
Actual Results 第69期実績
Actual Results
Actual Results 第70期実績
Actual Results 第70期実績
Actual Results 第70期実績+1.4%

FY2018FY2019

第69期実績
Actual Results
Actual Results 第70期実績

4Overview of Consolidated Operating Results for
Fiscal 2019 (2)FY2018 (2019/2)(Millions of yen, %)ActualResults

FY2019 (2020/2)
Plans(Revised)(%)

ActualResults

(%)

(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

47,118100.0

45,000100.044,970

100.0

－4.6

－0.1

Gross profit

27,155

57.6

25,785

57.3

25,780

57.3

－5.1

－0.4

－0.1

±0

Gross profit margin57.6

Selling, general andadministrative expenses

22,17147.1

21,785

48.6

21,804

48.5

－0.3

－1.7

Amortization of
goodwill

496

1.1

496

1.1

496

1.1

±0

±0

Operating income

4,984

10.6

4,000

8.9

3,975

8.8

－20.2

－1.6

Ordinary income

6,804

14.5

4,300

9.6

4,312

9.6

－36.6

+0.2

Net income

2,440

5.2

2,500

5.6

2,475

5.5

+1.4

－1.0

≪Reference ≫Key management indicators(Millions of yen, %)FY2018 (2019/2)
ActualResults

57.3

57.3

FY2019 (2020/2)
Plans(Revised)(%)

ActualResults

(%)

(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Operating income before theamortization of goodwill

5,480

10.1

4,496

10.0

4,471

9.9

－18.4

－0.5

Net income before theamortization of goodwill

2,936

9.3

2,996

6.7

2,971

6.6

+1.2

－0.8

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

5

Operating income
Cost of sales ratio
FY2018 FY 201942.4% ⇒ 42.5%+0.1pt(Millions of yen)

SG&A expenses to net sales ratio
FY2018 FY 201947.1% ⇒ 48.5%+1.4pt－ 2,148
4,984+772

Operatingincomemargin

+366
3,975

10.6%

Operating income

FY2018(2019/2)

Operatingincomemargin8.8%

Net sales

Cost of sales

SG&A expenses

Operating income

FY2019(2020/2)
6

Trends in Quarterly Business Results
Trends in Net Sales by Quarter
1Q(Millions of yen)

3Q

2Q

4Q
16,583

12,306 11,588

11,341 11,216 11,143

11,742 11,347 11,086 10,878

10,782

'16/2

'18/2

'16/2

'20/2

'17/2

'19/2

'20/2

'17/2

'18/2

'19/2

12,251 11,541 11,407

11,143 10,850

'16/2

'19/2

'17/2

'18/2

'20/2

'16/2

15,321'17/2

14,226 13,880'18/2

Trends in Operating Income by Quarter
1Q

2Q

'19/2

12,074'20/2((Millions of yen)

3Q

4Q
2,737 2,564 2,615
1,982

1,348

1,547

1,341 1,196 1,243
855

'16/2

'17/2

'18/2

'19/2

'20/2

'16/2

1,157 1,067

'17/2

'18/2

797

'19/2

952

'20/2

1,172 1,261 1,079
1,007

'16/2

'17/2

'18/2

'19/2

951

829

'20/2

'16/2

'17/2

'18/2

'19/2

'20/2

FY2018(2019/2)

1Q
FY20192Q
FY20193Q
FY20194Q
FY2019FY2019(2020/2)

Increase /(Decrease)

Net sales

47,118

11,143

10,782

10,85012,07444,850(2,268)－4.8Gross profit

27,155

6,379

6,029

6,253

7,119

25,780(1,375)－5.1

Operating income

4,984

1,243

952

829

951

3,975

(1,047)－21.6(Millionsof yen)(単位：百万円)

YoY

7

Overview of Business Results by Segment～The Jewelry Business Despite robust trends in the first half, decrease in both revenue and earnings for the full
fiscal year due to difficult conditions in the second half Results affected by a slump in the peak Christmas period, consumption tax rate hike, andCanal4ºC rebranding; impacted also by the incidence of temporary administrative expenses(Millions of yen)

Net sales
29,295

Operating income

Ordinary income

4,465

4,572

26,987FY20181
第69期実績
Actual Results

FY20192
第70期実績
Actual Results

Net sales
OperatingincomeOrdinary
incomeNet income

ActualResults

3,418－25.6%FY2018
第69期実績
Actual Results

2,129－25.2%FY2019
第70期実績
Actual Results

FY2018 (2019/2)(Millions ofyen, %)

2,982

3,319

－7.9%

Net income

FY2018
第69期実績
Actual Results－28.6%FY2019
第70期実績
Actual Results

FY2018
第69期実績
Actual Results

FY2019 (2020/2)

(%)

Plans
(Revised)

ActualResults(%)(%)

FY2019
第70期実績
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

29,295100.0

27,000100.026,897

100.0

－7.9

－0.4

4,465

15.2

3,300

12.2

3,319

12.3

－25.6

+0.6

4,572

15.6

3,450

12.8

3,418

12.7

－25.2

－0.9

2,982

10.2

2,200

8.1

2,129

7.9

－28.6

－3.2

8

Jewelry Business:
Factors that Impacted Business Results in Fiscal 2019
Change in the operating environment due to the impact
Factor 1 of the peak Christmas calendar on business activities
Drop in the euphoria normally associated with the peak Christmas period as aresult of December 23 falling on a weekday<Reference: YoY existing store net sales excluding December>
4ºC fashion jewelry sales
4ºC department store and bridal
shop sales

100.7％

4ºC BRIDAL specialty store sales

100.6％

4ºC brand total

100.9％

102.1％

Drop off in consumer sentiment due to the
Factor 2 consumption tax rate hike
Prolonged slump especially in bridal jewelry after the consumption tax rate
hike in October
9Jewelry Business:
Factors that Impacted Business Results in Fiscal 2019
Factor 3 Impact of Canal4ºC rebranding
Substantial decline in bridal jewelry and gift customers after Canal4ºC
rebranding(1)Store logo changed to “Canal Produced by 4ºC”
(2)Product mix in line with demand for own use trends(3)Downturn in Canal site searchers

Substantial drop in giftdemand by men in their
20s<YoY existing Canal4ºC store sales>
1H

2H

Full fiscal year

100.1％

80.0％

88.5％

Factor 4 Incidence of temporary administrative expenses(1) Investment in systems

Approx. ¥100 million(2) Increase in asset retirement obligations

Approx. ¥260 million
10Overview of Business Results by Segment～The Apparel BusinessOperating income result in excess of the plan; drop in net income attributable to the absence of the gain on
sales of investment securities posted in the previous fiscal year
Apparel Manufacturing Business profits up significantly owing to successful measures to improve the grossprofit margin and reduce overhead expenses
Everyday Fashion Brand Business sales and profits rise due to robust trends in existing store sales, whichwere in line with previous year’s levels, more store openings, and improvements in the profit margin(Millions of yen)

Net sales
17,822

Operating income

Ordinary income

758

17,983

Net income

980

904

4,582

603

+0.9%

+25.5%－88.8%+8.4%

512
FY2018FY2019
第69期実績
第70期実績
Actual Results Actual Results

第69期実績
FY2018Actual Results

第70期実績
FY2019Actual Results

FY2018 (2019/2)(Millions ofyen, %)Net sales
OperatingincomeOrdinary
incomeNet income

ActualResults

第69期実績
FY2018Actual Results

第70期実績
FY20189
Actual Results

第69期実績
FY2018Actual Results

FY2019 (2020/2)
Plans(Revised)(%)

ActualResults(%)(%)

第70期実績
FY2019Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

17,822100.0

18,000100.0

17,983

100.0

+0.9

－0.1

603

3.4

700

3.9

758

4.2

+25.5

+8.3

904

5.3

1,000

5.6

980

5.4

+8.4

－2.0

4,582

25.7

550

3.1

512

2.8

－88.8

－6.9

11

Overview of Financial Position and Cash Flows(Consolidated) Total assets, liabilities, and net assets stood at ¥53.7 billion, ¥14.1 billion, and¥39.5 billion, respectively
 Cash flows from financing activities: Repurchase of the Company’s own share ofaround ¥3.6 billion and cash dividends paid of roughly ¥1.7 billion
 Free cash flows declined ¥4.5 billion due to the absence of proceeds from sales ofshares of subsidiaries and associates recorded in the previous fiscal year
Financial Position

Cash Flows
As of February 29, 2020

¥53.7 billion¥39.5 billion

Total net assets

Total assets

Total liabilities¥ 14.1 billion(Millions of yen)

FY2018(2019/2)

FY2019(2020/2)

Increase(Decrease)

Operating cash
flows

1,664

2,433

+769

Investingcash flows

5,407

72

(5,335)

Financing cash
flows

(9,344)(5,468)+3,876Freecash flows

7,071

2,505

(4,566)12

Overview of Capital Investment as well as Depreciation
and Amortization (Consolidated)
Capital investment: ¥0.88 billion Depreciation and amortization: ¥1.42 billion

FY2018 (2019/2)(Millions of yen, %)YoY
Actual Results

Capitalinvestment

FY2019(2020/2)
Actual Results

895

880

FY2018 (2019/2)

FY2019 (2020/2)
YoY(Millions of yen, %)Actual Results

Depreciation andamortization

－15

1,123

Actual Results

1,243

+120
13

Status of Store Openings
 Jewelry Business: Working to reduce unprofitable stores centered on the Luria4ºC
brand Net increase of two stores in the Apparel BusinessApparelBusiness

Jewelry BusinessJapan

FY2018(2019/2)

FY2019ActualResults(2020/2)

Total
Overseas

PALETTE

209

4

71

284

5

13

0

3

16

4

18

39

1

1

41

40

73

183

3

73

259

Roadsidebutique

Department
store

Bridal Shop

Fashion
Building

Fiscalyearend

5

76

42

86

Storesopened062Storesclosed3

14

Fiscalyearend

2

68

Total

14

Status of the Number of Domestic Brand Stores in the
Jewelry Business
4ºC

4ºC

FY2018(2019/2)

FY2019ActualResults(2020/2)

BRIDAL

canal 4ºC

EAU
DOUCE
4℃

MAISONJEWELL

Jewelry
Total

Luria４℃

Total

Fiscalyear-end

91

42

46

23

7

209

50

259

Storesopened

7

2

4

1

0

14

3

17

Storesclosed

15

4

1

3

2

25

27

52

Fiscalyear-end

83

40

49

21

5

198

26

224

* Composite stores that handle multiple brands are recorded as a single store by each individual brand.
* Refers to the internal relocation of five stores within４℃ store openings/closings15

Shareholder Returns, Return Policy, Cash Dividends
 Dedicated to proactively repurchasing the Company’s own shares andsustained dividend hikes
 Fiscal year under review: Acquired 1.48 million (around ¥3.6 billion) of
the Company’s own shares Decided to retire 5 million shares of treasury stock(including previous repurchases) Plan to pay an annual cash dividend of ¥80 per share, up ¥5 per share,
for the fiscal year ended February 29, 2020
(ninth consecutive fiscal year of dividend increase)

FY2017 (2018/2)

FY2018 (2019/2)

FY2019 (2020/2)

Annual dividends per share
(Yen)

65

75

80

Payout ratio (%)

31.4

78.1

71.3
16

Contents
Ⅰ. Overview and Summary of Fiscal 2019, the Fiscal Year Ended
February 29, 2020

Ⅱ. About the New Management Structure
Ⅲ. Strategic Approach for Fiscal 2020
Ⅳ．Medium- to Long-Term Initiatives

Management Structure Approach in Fiscal 2020
Current Structure

YONDOSHI HOLDINGS INC. and F.D.C. Products Inc.
managed under an integrated operating structure with the CEO
and COO of both companies held on a concurrent basis

Work to enhance the corporate value of the Group by
expanding growth of the mainstay Jewelry Business
New Structure

Appoint highly specialized top management to each of
YONDOSHI HOLDINGS INC. and F.D.C. Products Inc.

Upgrade Group strategies while at the same time once again
placing the mainstay Jewelry Business on a growth trajectory18

Management Structure in Fiscal 2020 (Planned)
YONDOSHI HOLDINGS INC.
Determine the optimal allocation of asset inventories andmanagement resources held by the Group; work to further
enhance the Group’s corporate value by making appropriate
investment decisions

President and Representative Director, COO Tohru Hirota
Current
Position

Reasons for
Appointment

Director & Senior Managing Executive Officer,
The Hiroshima Bank
Mr. Hirota has a wealth of experience in the operations andmanagement of financial institutions as well as anabundance of knowledge in the finance, accounting, andbanking fields.
In addition to his lengthy management experience as adirector at The Hiroshima Bank, Ltd., Mr. Hirota has awealth of general management experience and a proventrack record of success.
19Management Structure in Fiscal 2020 (Planned)
F.D.C. Products Inc.
Concentrate on the Jewelry Business, a specialized field and core
activity of the GroupWork to further enhance the value of the 4ºC brand while at thesame time once again placing the Jewelry Business on a growthtrajectory

President and Representative Director, COO
Akihiro Takiguchi
Retire as a director of YONDOSHI HOLDINGS INC. to take up the positionof President and Representative Director and concentrate on the business of
F.D.C. Products Inc., a core company of the Group
20

Contents
Ⅰ. Overview and Summary of Fiscal 2019, the Fiscal Year Ended
February 29, 2020

Ⅱ. About the New Management Structure
Ⅲ. Strategic Approach for Fiscal 2020
Ⅳ．Medium- to Long-Term Initiatives

Impact of the New Coronavirus Pandemic (1)Macro-economy

 Amid restrictions on the movement of people andgoods worldwide, economic activity is bothstagnating and shrinking
Retail Sector

 Deterioration in consumer sentiment, businesssuspension and/or the shortening of business hours,
and a substantial decrease in inbound demand Concerns of a prolonged negative impact on sales

22Impact of the New Coronavirus Pandemic (2)Jewelry Business In Lehman Shock and Great East Japan Earthquake, there was minimal impact on
the strength of commodity prices, the customer base, and gift demand, which are lesssusceptible to economic trends.
 The new coronavirus pandemic has affected business fundamentals through thesuspension of business and shortening of business hours.
 No impact in product procurement[Existing Store Trends at the Time of Past Events](Unit: %)120

August 2008 Lehman Shock
108.7

110

FY2011YoY Existing Store
Sales 100.7

100
FY2008YoY Existing Store
Sales 98.1

90
80
80.4
70

March

March 2011Great East
Japan Earthquake
April

May

June

July

AugustSeptember

OctoberNovember December

January

February

23

Impact of the New Coronavirus Pandemic (3)Apparel Business[Apparel Manufacturing Business]

 Apparel ODM: No major issue with respect to the status ofoperations at overseas manufacturing bases at this stage
 While the status of current orders from major partnercompanies is firm, possibility that this will change in the event ofa prolonged downturn in consumption[Everyday Fashion Brand Business]

 Limited impact at this stage on the Everyday Fashion Brand
Business due to the inherent features of customers, which largely
comprise housewives residing in neighborhood areas and, andproducts which make up a high proportion of the overall
product mix
 Possibility that the procurement of products will be affectedfrom summer items in the event of a prolonged slump in global
production and logistics
24

Impact of the New Coronavirus Pandemic (4)Countermeasures
 Implement preventive measures prioritizing the health and safety ofcustomers and employees.
 Discontinue and reduce the scale of events that involve people gathering
together such as store manager meetings and company briefings
 Recognize the urgency of this situation and raise awareness of the need toreduce expenses.
 Focus on business continuity by examining supply chain risks andimplementing telework and alternating shift work.

Consolidated earnings forecast for the fiscal year ending February 28, 2021

・Due to many uncertain factors, including when the new coronavirus pandemic willease and the difficulty projecting a recovery in consumer sentiment, it is difficult todetermine a logical forecast at this stage for the consolidated earnings for the fiscal
year ending February 28, 2021.
・A prompt announcement will be made as soon as it becomes possible to prepare aforecast.
25

Fiscal 2020 Initiatives (1)Strengthen the Company’s management and businessplatforms by restructuring the business
Jewelry Business(1) Withdraw from the China market(2) Terminate the MAISON JEWELL brand(3) Terminate the Luria4ºC brandApparel Business(4) Liquidate ASTY VIETNAM INC

Improve the ability to carry out growth strategies in thenext fiscal year by building a robust business structure
through a process of selection and focus
26

MAISON JEWELL

F&A AQUA Shanghai, inc.

Luria4ºC

AS’TY VIETNAM INC

27

Fiscal 2020 Initiatives (2)Jewelry Business① Enhance the value of the 4ºC brand by further entrenching 3 Line Merchandising② Increase the competitive edge of bridal jewelry by strengthening products andservices③ Review the Canal4ºC rebranding policy④ Bolster engagement with customers by utilizing the CRM system

Apparel Business① Enhance material and product marketing capabilities in the Apparel Manufacturing Business② Reinforce overseas production management in the Apparel Manufacturing Business③ Further entrench the Group’s dominant position in the Kansai area by opening PALETTE storesin the Everyday Fashion Business④ Reduce the cost of sales ratio of PALETTE products by further expanding localization of theprocessing function28

Jewelry Business

Enhance the Value of the 4ºC Brand by Further Entrenching
3 Line Merchandising Increase the support of women through the “Noble of Water” collection,
which is based on the concept of “water”
 Deepen product development that is in tune with customers’
characteristics across each price line Upgrade and expand products that target anniversary demand

4ºC Noble of Water collection29

Jewelry Business

Increase the Competitive Edge of Bridal Jewelry byStrengthening Products and Services
 Work toward brands that help stimulate perpetual customer support by
expanding and augmenting lifetime warranties
 Strengthen traceability diamond proposals

4ºC BRIDAL

30

Jewelry Business

Review the Canal4ºC Rebranding Policy
 Bring about a recovery in Canal4ºC brand results by recapturing existingcustomers
 Engage in marketing and develop products that are in tune with station andfashion building channel customers

BeforeAfter

Photo by Kozo Takayama

Canal Produced by 4ºC Landmark Plaza Store

Canal4ºC LUMINE EST Shinjuku Store31

Jewelry Business

Bolster Engagement with Customers by Utilizing
the CRM System
 Look to capture 300,000 new members annually (FY2019: Roughly 100,000
registered members over four months)
 “Sakura Collection” introduced to members; open rate of 84.6%
 Increase the repeat rate and LTV by strengthening engagement with customers

image

4ºC Sakura collection

32

Apparel Business

Enhance Material and Product Marketing Capabilities
and Reinforce Overseas Production Management
 Establish competitive advantage by increasing functional and sustainable material
marketing capabilities Work to further augment overseas production bases through various measures
including the expansion of manufacturing in Bangladesh and cultivation of
production bases in Ho Chi Minh

Marketing of “sustainable material”

Subcontracting factory in Bangladesh

33

Apparel Business

Further Entrench the Group’s Dominant Position in the Kansai
Area by Opening PALETTE Stores and Reduce the Cost of Sales Ratio Work toward the ¥10 billion sales milestone by opening 8 new stores
 Strengthen efforts to promote new PALETTE members at new stores; continue toundertake effective promotional measures Work to reduce the cost of sales ratio through direct procurement resulting inincreased supply chain efficiency

PALETTE Branch Hakata Papillion Garden Store

34

Plans for Store Openings and Closures
 Jewelry Business: Carry out the withdrawal from unprofitable brands andoverseas businesses Apparel Business: Plan to open 8 PALETTE stores
ApparelBusiness

Jewelry BusinessJapan

FY2019ActualResults(2020/2)

FY2020
Forecast(2021/2)

Total
Overseas

PALETTE

183

3

73

259

3

4

0

8

12

0

9

10

3

1

14

40

67

177

0

80

257

Roadsidebutique

Department
store

Bridal Shop

Fashion
Building

Fiscalyearend

2

68

40

73

Storesopened010Storesclosed0

1

Fiscalyearend

2

68

Total

35

Plans for the Number of Domestic Brand Storesin the Jewelry Business
4ºC

FY2019ActualResults(2020/2)

FY2020
Forecast(2021/2)

4ºC
BRIDAL

canal 4ºC

EAU
DOUCE
4ºC

MAISONJEWELL

Jewelry
Total

Luria 4ºC

Total

Fiscalyear-end

83

40

49

21

5

198

26

224

Storesopened

1

0

4

0

0

5

0

5

Storesclosed

1

0

5

0

5

11

26

37

Fiscalyear-end

83

40

48

21

0

192

0

192

* Composite stores that handle multiple brands are recorded as a single store by each individual brand.

36

Contents
Ⅰ. Overview and Summary of Fiscal 2019, the Fiscal Year Ended
February 29, 2020

Ⅱ. About the New Management Structure
Ⅲ. Strategic Approach for Fiscal 2020
Ⅳ．Medium- to Long-Term Initiatives

Medium-Term Management Objectives① ROE 10％* or higher② EPS ¥200* or higher③ Consecutive increase in dividends paid; target anannual dividend of ¥100 per share* Calculated using net income before amortization of goodwill(Net income before amortization of goodwill = profit attributable to owners of parent + goodwill amortization)
38

Cash Dividend Policy
 YONDOSHI HOLDINGS aims to raise the level of returns to shareholders through stable
and continuous dividends and flexible share buybacks.
 YONDOSHI HOLDINGS will maintain its firm commitment to continued dividend
increases and plans to achieve a ninth consecutive increase in the annual dividend.
 Due to the uncertainty of the impact of the new coronavirus pandemic , dividends for the
fiscal 2020, ending February 28, 2021 are currently undecided, but despite this, YONDOSHIHOLDINGS plans to continue its dividend policy.

Annual cash dividend results and outlook

(Yen)

75

80

65
50
40
30

32

21

22

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019（2011.2期）(2011/2)（2012.2期）(2012/2)(2013/2)(2014/2)(2015/2)(2016/2)(2017/2)(2018/2)(2019/2)(2020/2)

20

39

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

Outputs

Customers

Jewelry SPA

Customers

Employees

Employees

Manufacturers

Manufacturers

Partnercompanies

Apparel OEM

RetailPartnercompanies
SocietySocietyEnhanced corporate value;
increased customer satisfaction

A century-old company and brandShareholders

Shareholders

Outcomes

Management and business platforms
The environment, society, and governance (ESG)40

Activities Aimed at Addressing ESG Issues
 As an RJC certified company, F.D.C. Products is working diligently to help
improve the reliability and standard of the jewelry market in each field※What is the RJC・・・
The Responsible Jewellery Council is an international not-for-profit, standards and certification organization. Coveringsocial and environmental responsibility focusing on the jewelry industry, the Council strives to realize responsible businesspractices for diamonds, gold and platinum across the entire jewelry supply chain and processes from mine to retail.

 Continuously support efforts to solve water-related issues as trustees of theJapan Water Forum41

In Conclusion
 Under the guidance of a new management structure, the
YONDOSHI HOLDINGS Group will focus on optimizing theallocation of asset inventories and management resources held
while at the same time promoting growth of its Jewelry Businessdriven largely by F.D.C. Products Inc.
 Every effort will be made to strengthen the Group’s management
and business platforms with a view to enhancing the Group’s
ability to promote growth strategies in the next fiscal year
through business restructuring.
 The YONDOSHI HOLDINGS Group will strive to bring about arecovery in its existing customer base by reviewing its Canal4ºC
rebranding policy in order to further increase the competitiveedge of the 4ºC brand in the Jewelry Business.

42

In Conclusion
 Energies will be directed toward steadfastly promoting existing
strategies in the Apparel Business and to realize its role as astable earnings platform business while maintaining robust
trends.
 Every effort will be made to find a roadmap to expand profit in
the Jewelry Business in order to achieve the medium-term ROE
target of 10% or higher and EPS of ¥200 or higher(*on a net income before the amortization of goodwill basis) YONDOSHI HOLDINGS plans to pay an annual cash dividendof ¥80 per share, an increase of ¥5.00 per share for the fiscal year
under review. The Company will maintain its firm commitment
to continued dividend increases and plans to achieve a ninth
consecutive increase in the annual dividend. Working toward thegoal of achieving an annual cash dividend of ¥100 per commonshare in the future, the Company plans to continue following theexisting dividend policy.
 The Company will further increase business management quality
as Japan’s leading jeweler in a bid to become a century-old
company and brand.
43

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.
President Office (Kozuka, Takahashi)
TEL+81-3-5719-3295
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.