CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2022
(March 1, 2021 to August 31, 2021)
October 8, 2021
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: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 11, 2021
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for analysts and institutional investors)
Dividend payment commencement date (planned): November 12, 2021
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2021
(March 1, 2021 to August 31, 2021)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating Income
Ordinary Income
owners of parent％％

Millions of yen％

Millions of yen％(62.0)

715(44.3)

280(53.5)

17,980(18.0)
1,043(52.5)FY2021 First Half: 740 million yen (－46.2%)
FY2020 First Half: 1,375 million yen (51.7%)

1,283(45.8)

603(59.4)

Millions of yen

FY2021 First Half
FY2020 First Half

17,769Note: Comprehensive income

Millions of yen(1.2)

Net Income
per Share

FY2021 First Half
FY2020 First Half

396

Net Income per
Share after Dilution
Yen

Yen

13.08

—

27.79
—
(Reference) Operating income before the amortization of goodwill:
FY 2021 First Half: ¥645 million
FY 2020 First Half: ¥1,291 million
The Company considers operating income before the amortization of goodwill to be an important management indicator.

(2) Consolidated Financial Position
Total Assets
Millions of yen

August 31, 2021
February 28, 2021

Net Assets to Total
AssetsNet Assets
Millions of yen

51,69639,433

Net Assets per Share

%

Yen

76.2

1,838.82

53,00039,543
74.6(Reference)Shareholders’ equity: August 31, 2021: 39,412 million yen
February 28, 2021: 40,112 million yen

1,844.69

2. Dividends
Dividends per Share
(Record Date)

End of 1Q

End of 2Q
Yen

End of 3Q
Yen

Fiscal 2020—
40.50
Fiscal 2021—
41.50
Fiscal 2021
(Forecast)
Note: Revision to the most recently announced cash dividend forecast: No-1-

AnnualYear-end
Yen

Yen

Yen

—

40.50

81.00

—

41.50

83.00

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2022
(March 1, 2021 to February 28, 2022)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable to
Net Income
Operating Income
Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen%

Millions of yen%

Millions of yen

Fiscal year
ending40,500
2.7
2,800
1.2
3,300
February 28,2022
Note: Revision to the most recently announced operating results forecast: No(Reference) EPS before the amortization of goodwill in FY 2021 is ¥125.85.

%

3.3

Millions of yen

2,200

%

Yen

35.6

102.68Notes(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: Yes(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 the period-end:
August 31, 2021: 24,331,356 sharesFeb. 28, 2021: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2021: 2,897,982 sharesFeb. 28, 2021: 2,911,168 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2021 First Half: 21,425,904 shares
FY2020 First Half: 21,703,709 shares
Note: The number of recorded treasury stock includes 53,926 of the Company’ shares held by the Shares Grant
Trust for Officers as of the end of the second quarter of the subject consolidated fiscal year.

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
1. The forecasts of operating results and other items concerning the future contained in this document are
based on management’s assumptions and beliefs that are determined to be reasonable in light ofcurrently 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, pleaserefer to “1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated
Results Forecasts and Other Future Predictions” on page 5.
2.

The Company plans to hold a financial results briefing on October 8, 2021 (Friday) for institutional
investors and analysts. Presentation materials used that day will be posted to the Company’s website
promptly after the briefing.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

4(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income Second Quarter Cumulative

8

Consolidated Quarterly Statements of Comprehensive Income Second Quarter Cumulative

9(3)

Consolidated Quarterly Statements of Cash Flows

10

(4)

Notes to Consolidated Quarterly Financial Statements

12(Notes Regarding Going Concern Assumptions)

12(Notes Regarding Substantial Changes in Shareholders’ Equity)

12(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial

12Statements)(Additional Information)

12(Segment Information)

13(Important Subsequent Events)

13

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first half period (March 1, 2021 to August 31, 2021) of fiscal 2021 (the fiscal year ending
February 28, 2022), conditions throughout the Japanese economy remained severe. With little or no signof COVID-19 abating, this harsh operating environment was largely due to the strain placed on economic
activities by the government’s prolonged declarations of a state of emergency and priority measures toprevent the spread of disease as well as the temporary surge in the number of people infected.
In the retail industry, the outlook remains unclear, with business conditions overall affected by thegovernment’s call for people to remain at home, as well as business suspensions and shortened operating
hours at stores. In addition, consumer spending has slowed as a result of the continued cooling off inconsumer sentiment amid the worsening employment and income situation.
Under these circumstances, YONDOSHI HOLDINGS Group is working to provide products andservices that exceed customer expectations by leveraging the strengths of the corporate group to the fullest
extent during fiscal 2021, the initial year of the sixth medium-term management plan. In addition, theCompany is practicing CSR-based management to establish a highly trusted corporate group, and is
working 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, for the first half of the fiscal year under review, net sales amounted to ¥17,769 million(down 1.2% from the same period of the previous fiscal year), operating income ¥396 million (down
62.0%), ordinary income ¥715 million (down 44.3%) and profit attributable to owners of parent ¥280
million (down 53.5%). Operating income before the amortization of goodwill, which the Company
considers to be an important management indicator, amounted to ¥645 million (down 50.1%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group, which is largely responsible for the YONDOSHI HOLDINGS Group’s
Jewelry Business, proactively undertook investments aimed at enhancing brand value despite the harsh
operating environment in response to the prolonged declarations of a state of emergency amid thesubstantial effects of the spread of COVID-19. In addition, operating income decreased significantly due
to a reactionary increase in personnel expenses, a portion of which was recorded as an extraordinary loss
in the corresponding period of the previous fiscal year.
As a result, net sales in the Jewelry Business amounted to ¥7,894 million (down 7.5% from the same
period of the previous fiscal year), and operating income ¥60 million (down 91.2%).
Apparel Business
Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, achieved record-high net sales
and operating income. In addition to the opening of six new stores, which exceeded initial plans, theserecord-high results were also attributable to robust trends at existing stores.
The AS’TY Group continued to work on ensuring stable operations at its overseas production bases
and the strengthening of its product planning capabilities.
As a result, net sales in the Apparel Business segment amounted to ¥9,875 million (up 4.5% from thesame period of the previous fiscal year). From a profit perspective, operating income came in at ¥547
million (down 3.6%).
(2) Explanation of Financial Condition
Assets, Liabilities and Net Assets
Total assets as of the end of the second quarter (August 31, 2021) of the fiscal year ending February 28,
2022 amounted to ¥51,696 million, a decrease of ¥1,303 million from the end of the previous fiscal year
(February 28, 2021). Despite an increase in investment securities of ¥724 million, this downturn in total
assets largely reflected decreases in goodwill of ¥248 million as well as cash and deposits of ¥1,207
million from the end of the previous fiscal year. Total liabilities amounted to ¥12,262 million, a decreaseof ¥1,194 million from the end of the previous fiscal year. This was due mainly to a decline of ¥376
million in notes and accounts payable ― trade and decrease of ¥252 million in income taxes payable.
Total net assets as of the end of the subject period amounted to ¥39,433 million, a decrease of ¥109 million
from the end of the previous fiscal year.

-4-Cash Flows
Cash and cash equivalents as of the end of the second quarter of the fiscal year under review stood at¥2,025 million, a decrease of ¥707 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥14 million, down ¥2,798 million compared withthe corresponding period of the previous fiscal year. While YONDOSHI HOLDINGS Group recorded
such cash inflows as income before income taxes and income taxes refund, this was more than offset bycash outflows including income taxes paid.
(Cash Flows from Investing Activities)
Net cash provided by investing activities totaled ¥173 million. This was a turnaround of ¥1,988 million
from the net cash used in investing activities for the corresponding period of the previous fiscal year. The
principal cash inflow was proceeds from redemption of investment securities while the major cash outflow
was purchase of investment securities.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥899 million, up ¥672 million compared with thecorresponding period of the previous fiscal year. The major cash outflow was cash dividends paid.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Regarding consolidated results forecasts for fiscal 2021 (ending February 28, 2022), although conditions
surrounding COVID-19 are not expected to worsen beyond the current situation, and consumptions trends
are projected to gradually recover, the Company’s forecasts assume that the impact of the pandemic willcontinue during the subject period.
Of note, because the timing of a return to normal activity following COVID-19 remains uncertain, thefuture status of the pandemic and extent to which it will dissipate could have a significant impact on
consolidated earnings.

-5-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

End of the Second Quarter of
the Fiscal Year Ending
February 28, 2022
(As of August 31, 2021)

3,232
2,587
7,718
285
1,081
713
(3)

2,025
2,539
7,620
245
1,020
708
(4)

15,61614,155

4,982
5,492
538

4,769
5,492
457

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Other, net

11,013

10,719Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

2,730
201

2,482
165

Total intangible assets

2,932

2,648

Investments and other assets:
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts

18,489
487
4,516
(55)

19,214
505
4,507
(52)

Total investments and other assets

23,43824,17337,38337,54053,00051,696

Total noncurrent assets
Total assets

-6-

５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

End of the Second Quarter of
the Fiscal Year Ending
February 28, 2022
(As of August 31, 2021)

3,148
643
269
25
－
2,715

2,772
390
213
26
8
2,005

6,802

5,417

123

121

497
1,428
4,605

500
1,429
4,793

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Provision for share-based remuneration for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Other

6,654

6,845

Total liabilities

Total noncurrent liabilities

13,457

12,262NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock

2,486
7,208
31,978(6,215)

2,486
7,208
31,388(6,187)35,45834,896

Other accumulated comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans

Total shareholders’ equity

4,315
8
(233)
75
(110)

4,772
5
(233)
74
(103)

Total other accumulated comprehensive income

4,055

4,515

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

-7-

29

21

39,54339,43353,00051,696

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2021
(March 1, 2020 toAugust 31, 2020)

First Half of the
Fiscal Year Ending
February 28, 2022
(March 1, 2021 toAugust 31, 2021)

Net sales
Cost of Sales

17,9808,505

17,7698,547

Gross profit

9,474

9,222

Selling, general and administrative expenses

8,431

8,825

Operating income

1,043

396

86
92
36

Non-operating income
Interest income
Dividends received
Rent of real estate for investment
Foreign exchange gains
Subsidy income
Other

―
3
39

39
90
36
14
128
20

Total non-operating income

258

330

1
2
0
6
2
4
0

0
2
0

Non-operating expenses
Interest expenses
Depreciation of real estate for investment
Management cost for real estate for investment
Foreign exchange losses
Provision of allowance for doubtful accounts
Loss on cancellation of insurance policies
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on reversal of share acquisition rights
Subsidies for employment adjustment
Reversal of loss on liquidation of subsidiaries
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores
Allowance for absence from work
Loss on liquidation of subsidiaries
Loss on liquidation of brands
Loss on valuation of investment securities

―
0
2
5

17

11

1,283

715

22
52
394
27

―
―

497

64

106
27
405
6
121
63

183

64

―

―
61

―
―
―

Total extraordinary losses

730

244

Net income before income taxes

1,050

535

Total income taxes

447

255

Net income

603

280

Profit attributable to owners of parent

603

280

-8-

Consolidated Quarterly Statements of Comprehensive Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2021
(March 1, 2020 toAugust 31, 2020)
Income before minority interests
Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent-9-First Half of the
Fiscal Year Ending
February 28, 2022
(March 1, 2021 toAugust 31, 2021)
603

280

755
(8)
21
3

457
(3)
(1)
7

772
1,375

460
740

1,375

740

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2021
(March 1, 2020 toAugust 31, 2020)
Cash flows from operating activities:
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Gain on reversal of share acquisition rights
Subsidies for employment adjustment
Subsidy income
Allowance for absence from work
Increase (decrease) in net defined benefit liability
Increase (decrease) in other provisionInterest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Loss (gain) on sales of investment securities
Increase (decrease) in accounts payable―other
Increase (decrease) in advances received
Increase (decrease) in accounts payable ― other
Decrease (increase) in other assets
Increase (decrease) in other liabilities

1,050
483
106
248
5
(21)
(52)
(394)
(3)
405
(18)
14
(179)
1
8
63

Subtotal

First Half of the
Fiscal Year Ending
February 28, 2022
(March 1, 2021 toAugust 31, 2021)
535
426
183
248
(1)
(55)

―
(64)
(128)
61
(2)
(1)
(129)
0
(5)

―

(24)

50

501

199

(1,300)

(376)

(22)
239
(160)
(318)
75
(126)

(479)
(59)
(21)
10
(157)

―

581

231

Interest and dividends income received
Interest expenses paid
Subsidies for employment adjustment received
Subsidies received
Allowance for absence from work paid
Income taxes paid
Income taxes refund

173
(1)
394
3
(405)
(642)
2,709

134
(0)
52
124
(61)
(853)
386

Net cash provided by (used in) operating activities

2,813

14

- 10 -

(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2021
(March 1, 2020 toAugust 31, 2020)
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Payments of long-term loans receivableCollection of long-term loans receivable
Purchase of long-term prepaid expenses
Other payments
Other proceeds

First Half of the
Fiscal Year Ending
February 28, 2022
(March 1, 2021 toAugust 31, 2021)

(500)

―

―

500
(247)
0
(2)
(2,029)
0
2,000

(367)

―
(54)
(1,006)
88

―

―

(0)
0
(13)
(95)
133

0
(10)
(61)
51

Net cash provided by (used in) investing activities(1,815)173

Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Other, net

800
(82)
(50)
14
(870)
(38)

―
―

(870)
(29)

Net cash provided by (used in) financing activities

(227)

(899)

(0)

―

Effect of exchange rate changes on cash and cash equivalents(1)

4

Net increase (decrease) in cash and cash equivalents

769

(707)

785

2,732

1,555

2,025

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

(4) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial
Statements)(Calculation of Tax Expense)
Tax expense has been calculated by rationally estimating the effective tax rate after the application oftax effect accounting for profit before income taxes in the consolidated fiscal year, including the subject
second quarter period, and multiplying this estimated effective tax rate by profit before income taxes.
(Additional Information)(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stockcompensation plan (hereinafter, the “Plan”), with eligible persons the Company’s directors (excluding
directors who are audit and supervisory committee members) and directors who are audit andsupervisory committee members (excluding outside directors), as well as directors and corporate
auditors (excluding outside corporate auditors) of the Company’s major group companies from
November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible
companies in accordance with rules for granting trust-based stock compensation to corporate officers as
determined by the eligible companies. The Company will contribute funds to the trust, and the trust will
use these funds to acquire the Company’s shares, and grant them to eligible directors. In principle,
directors and other officers will receive the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at theirbook value in the Trust (excluding the amount of ancillary expenses). The book value and number ofshares of such treasury stock was ¥144 million, for 67,136 shares at the end of the previous consolidated
fiscal year, and ¥115 million, for 53,926 shares at the end of the second quarter of the subject
consolidated fiscal year.
(Accounting Estimates)
There are no significant changes in the assumptions regarding the impact from the COVID-19 virus or
accounting estimates from those presented in the (Additional Information) – (Accounting Estimates)
section of the financial statement for the previous fiscal year.

- 12 -

(Segment Information)
Ⅰ The first half of the fiscal year ended February 28, 2021 (March 1, 2020 to August 31, 2020)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

8,534

9,445

17,980―17,980

―

111

111

(111)

―

Total

8,534

9,557

18,092(111)

17,980

Segment income

686

567

1,254

(210)

1,043

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥210 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥301 million and elimination of inter-segment transactions of ¥339 million. 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.

Ⅱ The first half of the fiscal year ending February 28, 2022 (March 1, 2021 to August 31, 2021)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

7,894

9,875

17,769―17,769

0

74

74

(74)

―

Total

7,894

9,949

17,844(74)

17,769Segment income

60

547

607

(211)

396

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥211 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥244 million and elimination of inter-segment transactions of ¥282 million. 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.

(Important Subsequent Events)
Not applicable- 13 -