CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2018
(March 1, 2017 to May 31, 2017)
July 3, 2017
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 Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): July 14, 2017
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): —(Millions of yen rounded down)

1. Consolidated Operating Results for the First Quarter of Fiscal 2017
(March 1, 2017 to May 31, 2017)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable toNet sales
Operating Income
Ordinary Income
owners of parent％

Millions of yen

Millions of yen％

Millions of yen％

Millions of yen％

1Q FY2017

11,341(2.1)

1,341(13.3)

1,714(7.9)

1,188(2.4)

1Q FY2016

11,588(5.8)

1,547

14.8

1,860

10.5

1,217

0.4

Note: Comprehensive income 1Q FY2017: 1,209 million yen (-15.0%) 1Q FY2016: 1,424 million yen (-12.3%)
Net Incomeper ShareNet Income perShare after Dilution
Yen

Yen

1Q FY2017

46.59

46.53

1Q FY2016

47.10

47.03

(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share%Yen

49,67478.7

1,942.57

62,42049,074
February 28, 2017
(Reference)Shareholders’ equity: May 31, 2017: 49,553 million yen
February 28, 2017: 48,959 million yen

78.4

1,920.55

Millions of yen

May 31, 2017

Millions of yen

62,9492. Dividends
Dividends per Share(Record Date)
Fiscal 2016
Fiscal 2017
Fiscal 2018
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

——

25.00

—

25.00

50.00

32.50

—

32.50

65.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 28, 2018: No-1-3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2018
(March 1, 2017 to February 28, 2018)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable toNet Income
Operating Income
Ordinary Income
owners of parentper ShareNet Sales
Millions of yen

Interim period
Fiscal year
endingFebruary 28,2018%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

23,000

0.3

2,500

(7.5)

3,150

(3.8)

2,150

3.3

84.31

51,000

2.4

6,850

4.9

8,250

5.8

5,550

11.8

217.63

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 28,
2018: No

Notes
(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: No
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
May 31, 2017: 29,331,356 sharesFeb. 28, 2017: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2017: 3,822,164 sharesFeb. 28, 2017: 3,838,799 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidatedperiod)First quarter fiscal 2017: 25,501,674 shares First quarter fiscal 2016: 25,851,767 sharesThis financial report for the first quarter of fiscal 2017 is not subject to the review procedures.
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
based on management’s assumptions and beliefs that are determined to be reasonable in light of currently
available information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety of factors
actual results may differ materially from forecasts. For the assumptions that underpin operating results
forecasts as well as cautionary notes on the use of operating results forecasts, please refer to “1. QualitativeInformation on Business and Financial Results (3) Explanation of Consolidated Results Forecasts andOther Future Predictions” on page 4.

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Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)Explanation of Business Results4(2)Explanation of Financial Condition

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

4

Consolidated Quarterly Financial Statements

5(1)Consolidated Quarterly Balance Sheets

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

Comprehensive Income
Consolidated Quarterly Statements of Income

First Quarter Cumulative

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

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

9(Segment Information)

10-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first quarter period of the fiscal year ending February 2018 (March 1, 2017 to May 31, 2017),
the Japanese economy recovered at a moderate pace on improvement in corporate earnings andemployment conditions, while overseas the outlook remained unclear as a result of many matters ofconcerns, including unstable political trends and rising geopolitical risk.
In the retail industry, business conditions remained harsh, with consumption declining amid
persistent budget-consciousness and a slowdown in inbound demand.
Under these circumstances, during the fiscal year ending February 2018, the final year of the fourth
medium-term management plan, the YONDOSHI HOLDINGS Group continued to cultivate humanresources, bolster product capabilities, and assess market trends, with the aim of becoming a century-oldcompany and brand. Further, we practiced CSR-based management to establish a highly trusted
corporate group, and worked to enhance enterprise value by strengthening internal controls, providing
shareholder returns, and making medium to long-term investments linked to earnings growth.
As a result, net sales for the subject first quarter period amounted to ¥11,341 million (down 2.1%
from the same period of the previous fiscal year). Earnings were in line with plan, with operating
income of ¥1,341 million (down 13.3% YoY), ordinary income of ¥1,714 million (down 7.9% YoY),and profit attributable to owners of parent of ¥1,188 million (down 2.4% YoY).
Operating results by business segment were as follows.

Jewelry Business
The F.D.C. Products Group posted a revenue decline year on year due to the impact from measures in
the previous fiscal year, but is taking proactive steps to achieve further growth going forward. Mainstay
4°C brand jewelry marked its 45th anniversary with the launch of the limited edition Aquanista
COLLECTION. The 4°C BRIDAL brand pursued independence as a specialty shop, expanding thescope of its promotional measures and moving forward with large-scale product development.
As a result, net sales in the Jewelry Business segment amounted to ¥6,978 million (down 4.5% YoY),
with operating income of ¥1,212 million (down 12.3% YoY).
Apparel Business
The AS’TY Group achieved positive results on successful efforts to strengthen measures with majorclients utilizing its planning capabilities and production framework. Retailer age Co., Ltd. achieved
positive returns from expanded openings of new locations for its mainstay everyday fashion brand
PALETTE, and measures to strengthen sales promotions.
As a result, net sales in the Apparel Business segment amounted to ¥4,363 million (up 1.9% YoY),
with operating income of ¥170 million (down 4.2% YoY).
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2017) amounted to ¥62,949 million,
an increase of ¥528 million from the end of the previous fiscal year (February 28, 2017). This was due
mainly to increases of ¥897 million in merchandise and finished goods; and ¥682 million in notes andaccounts receivable―trade; against a decrease of ¥600 million in short-term investment securities. Total
liabilities amounted to ¥13,274 million, a decrease of ¥72 million from the end of the previous fiscalyear. This was due mainly to a decrease of ¥649 million in income taxes payable; against an increase of¥537 million in notes and accounts payable―trade. Total net assets at the end of the subject periodamounted to ¥49,674 million, an increase of ¥600 million from the end of the previous fiscal year.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 10, 2017.

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2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the First Quarter ofFebruary 28, 2017

the Fiscal Year Ending(As of February 28, 2017)

February 28, 2018
(As of May 31, 2017)

ASSETS
Current assets:
Cash and deposits

2,088,219

1,562,294

Notes and accounts receivable ― trade

3,137,084

3,819,169

Short-term investment securities

3,200,000

2,600,000

Merchandise and finished goods

7,453,776

8,351,728

Work in process

844,796

572,050

Raw materials and supplies

703,247

630,097

1,139,152

1,256,685

Other current assets
Allowance for doubtful accounts
Total current assets(2,357)(3,123)

18,563,921

18,788,903

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

5,682,408

5,803,232

Land5,492,215

5,492,215

951,801

970,466

12,126,426

12,265,914

4,716,796

4,592,670

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

213,275

171,910

Total intangible assets

4,930,072

4,764,580

22,248,070

22,544,196

Investments and other assets:
Investment securities
Net defined benefit asset
Other

520,200

530,406

4,140,338

4,162,259

Allowance for doubtful accounts(108,150)(107,104)

Total investments and other assets

26,800,458

27,129,758

Total noncurrent assets
Total assets-5-43,856,957

44,160,253

62,420,878

62,949,157

５．（要約）四半期連結財務諸表(Thousands of yen)
End of the Fiscal Year Ended

End of the First Quarter ofFebruary 28, 2017

the Fiscal Year Ending(As of February 28, 2017)

February 28, 2018
(As of May 31, 2017)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade3,955,932

Income taxes payable

1,141,834

4,493,364
492,374

Provision for bonuses

351,451

369,685

Provision for directors' bonuses

65,05017,078Asset retirement obligations

1,000

14,083Other

3,176,938

3,246,733

Total current liabilities

8,692,207

8,633,319

Noncurrent liabilities:
Long-term loans payable

378,940

378,940

Provision for directors' retirement benefits

378,418

381,630

Net defined benefit liability

573,336

577,748

Asset retirement obligations

993,306

992,5032,330,212

2,310,130

Other
Total noncurrent liabilities
Total liabilities

4,564,214

4,640,953

13,346,422

13,274,272

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,145,727

18,150,368

Retained earnings

33,727,198

34,256,324

Treasury stock(6,510,635)(6,472,341)

Total shareholders’ equity

47,848,810

48,420,872

1,336,181

1,346,288

Other accumulated comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

16,9595,022(161,985)(161,985)

Foreign currency translation adjustments

72,94066,327

Remeasurements of defined benefit plans(153,265)(123,095)

Total other accumulated comprehensive income

1,110,829

1,132,557

Subscription rights to shares
Total net assets
Total liabilities and net assets-6-

114,815

121,455

49,074,456

49,674,884

62,420,878

62,949,157

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
First Quarter Cumulative(Thousands of yen)First Quarter of theFirst Quarter of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toMay 31, 2016)

May 31, 2017)

Net sales

11,588,520

11,341,837

Cost of Sales

4,757,212

4,734,743

Gross profit

6,831,308

6,607,093

Selling, general and administrative expenses

5,283,586

5,265,425

Operating income

1,547,721

1,341,667

Non-operating income
Interest income

4,667

5,767

Dividends received
Equity in earnings of affiliates

5,994

8,157

284,430

331,909

Rent of real estate for investment

18,28518,285

Other

11,869

11,577

Total non-operating income

325,247375,697

Non-operating expenses
Interest expenses

76

25

Depreciation of real estate for investment

1,174

1,171

Foreign exchange losses

9,142

454

Management cost for real estate for investment
Other
Total non-operating expenses
Ordinary income

511

511

1,616

1,179

12,521

3,342

1,860,447

1,714,022

Extraordinary loss
Impairment loss
Loss on closing of stores

9,425

5,106

―

1,143

Loss on sales of shares of subsidiaries and associates

493,781―

Total extraordinary losses

503,206

6,249

Net income before income taxes

1,357,240

1,707,772

Income taxes ― current

435,520

483,555

Income taxes ― deferred(295,978)36,027

Total income taxes

139,541

519,583

Net income

1,217,699

1,188,188

Profit attributable to owners of parent

1,217,699

1,188,188-7-Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative(Thousands of yen)

Income before minority interests

First Quarter of theFirst Quarter of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toMay 31, 2016)

May 31, 2017)

1,217,699

1,188,188

Other valuation difference on available-for-sale securities

105,221(25,826)

Deferred gains or losses on hedges
Foreign currency translation adjustments

24,437(11,936)(18,809)(6,613)

Revaluation reserve for land

(10,415)―Remeasurements of defined benefit plans, net of tax

16,004

10,71089,97355,393

206,413
1,424,112

21,727
1,209,916

1,424,112

1,209,916――

Other comprehensive income

Share of other comprehensive income of entities 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-8-(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Additional Information)(Application of Revised Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company has applied “Revised Implementation Guidance on Recoverability of Deferred Tax
Assets” (Accounting Standards Board of Japan (ASBJ) Guidance No. 26, March 28, 2016), from thefirst quarter period of the subject fiscal year.

-9-(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 28, 2017 (March 1, 2016 to May 31, 2016)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

7,305,131

4,283,389

11,588,520―

11,588,520

6,854

240,745

247,600(247,600)

―

Total

7,311,985

4,524,135

11,836,121(247,600)

11,588,520

Segment income

1,382,535

178,282

1,560,817(13,096)

1,547,721

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥13,096 thousand for segment income or loss mainly includes corporate expenses thatare not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses notattributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items byReporting Segment
There was no major impairment loss recorded during the period under review.
ⅡThe first quarter of the fiscal year ending February 28, 2018 (March 1, 2017 to May 31, 2017)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

6,978,204

4,363,632

11,341,837―

11,341,837

804

224,448

225,253(225,253)

―

Total

6,979,009

4,588,081

11,567,090(225,253)

11,341,837

Segment income

1,212,989

170,745

1,383,735(42,067)

1,341,667

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
3. The adjustment amount of minus ¥42,067 thousand for segment income or loss mainly includes corporate expenses thatare not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
4. 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.

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