CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2020
(March 1, 2019 to May 31, 2019)
July 10, 2019
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): July 11, 2019
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 2019
(March 1, 2019 to May 31, 2019)(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％

Millions of yen％

Millions of yen

1Q FY201911,143
(0.6)
1,243
3.9
1,341
(11.4)
805(22.9)
1Q FY2018
11,216(1.1)
1,196(10.8)
1,512(11.7)
1,043(12.2)
Note: Comprehensive income 1Q FY2019: 70 million yen (-93.5%) 1Q FY2018: 1,085 million yen (-9.4%)
Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

1Q FY2019
35.35—
1Q FY2018
40.66
40.63
(Reference) Operating income before the amortization of goodwill:
1Q FY 2019: ¥1,367 million 1QFY 2018: ¥1,321 million
The Company considers operating income before the amortization of goodwill to be an importantmanagement indicator.

(2) Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Millions of yen%

Yen

41,35970.8

1,836.66

43,58772.6

1,883.28

Millions of yen

May 31, 201958,30159,934
February 28, 2019
(Reference)
Shareholders’ equity: May 31, 2019: 41,268 million yen

Net Assets per Share

February 28, 2019: 43,497 million yen

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2018
Fiscal 2019
Fiscal 2019
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

37.50

—

37.50

75.00

40.00

—

40.00

80.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 28, 2020: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2020
(March 1, 2019 to February 28, 2020)(% 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

Interim period
Fiscal year
endingFebruary 28,
2020%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

22,400

1.4

2,100

5.3

2,250 (12.7)

1,500 (17.5)

65.87

47,300

0.4

5,100

2.3

5,400

3,400

149.30(20.6)

39.3

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 28, 2020:
No(Reference) EPS before the amortization of goodwill, taking into account the upper limit for share buy-backs
in FY 2019, is ¥174.10.

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 the period-end:
May 31, 2019: 29,331,356 sharesFeb. 28, 2019: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2019: 6,861,901 sharesFeb. 28, 2019: 6,234,634 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)First quarter fiscal 2019: 22,773,543 shares First quarter fiscal 2018: 25,666,849 shares
Note: The number of recorded treasury stock includes 52,200 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust (hereinafter referred to the “the Trust”) and46,823 of the Company’ shares held by the Shares Grant Trust for Officers as of the end of the 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 4.
2.

The Company had previously presented its financial statements in units of thousands of yen, but fromFY 2019 has changed the unit to millions of yen. Of note, to ease comparison, figures from the previous
fiscal year have been recombined to millions of yen.

-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

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

7
8

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

9(Additional Information)

9(Segment Information)

11

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first quarter period (March 1, 2019 to May 31, 2019) of fiscal 2019 (ending February 2020),
the Japanese economy recovered at a moderate pace on improvement in corporate earnings andemployment conditions. However, the outlook remained clouded over such concerns as how the directionof trade issues and fluctuations in capital markets will affect the global economy.
In the retail industry, despite signs of an improvement in personal consumption, business conditions
remained difficult, with continued budget-consciousness arising from uncertainty about the future.
Under these circumstances, during fiscal 2019, the second year of the fifth medium-term management
plan, the YONDOSHI HOLDINGS Group continued to cultivate human resources, bolster productcapabilities, and assess market trends, with the aim of becoming a century-old company 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 ¥11,143 million (down 0.6% fromthe same period of the previous fiscal year), with operating income of ¥1,243 million (up 3.9%). Becauseof the lack of equity in earnings of affiliates in the subject fiscal year, ordinary income declined to ¥1,341
million (down 11.4%) and profit attributable to owners of parent to ¥805 million (down 22.9%), but were
mostly in line with plan.
Operating results by business segment were as follows.

Jewelry Business
The F.D.C. Products Group implemented various successful measures, with an increase in bridal jewelry.
Store earning capacity also increased as a result of the ongoing scrap-and-build program.
As a result, net sales in the Jewelry Business segment amounted to ¥6,420 million (down 3.8% fromthe same period of the previous fiscal year), with operating income of ¥1,031 million (up 1.9%).
Apparel Business
The AS’TY Group achieved positive results from successful efforts to strengthen measures with majorclients, utilizing its product proposal capabilities and overseas production framework. Retailer age Co.,
Ltd. also achieved gains from expanded openings of new locations for its mainstay everyday fashion
brand PALETTE, and efforts to strengthen sales promotion measures.
As a result, net sales in the Apparel Business segment amounted to ¥4,723 million (up 4.0% from thesame period of the previous fiscal year), with operating income of ¥284 million (up 27.4%).
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2019) amounted to ¥58,301 million, adecrease of ¥1,632 million from the end of the previous fiscal year (February 28, 2019). This was due
mainly to a decrease of ¥1,500 million in securities. Total liabilities amounted to ¥16,942 million, an
increase of ¥595 million from the end of the previous fiscal year. This was due mainly to an increase of¥1,400 million in short-term loans payable. Total net assets at the end of the subject period amounted to¥41,359 million, a decrease of ¥2,228 million from the end of the previous fiscal year. This was due
mainly to an increase of ¥1,429 million in treasury stock (decrease in net assets).
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 10, 2019.

-4-

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

End of the First Quarter ofFebruary 28, 2019

the Fiscal Year Ending(As of February 28, 2019)

February 28, 2020
(As of May 31, 2019)ASSETS
Current assets:
Cash and deposits

2,246

775

Notes and accounts receivable ― trade

2,854

3,430

Short-term investment securities

1,550

―

Merchandise and finished goods

8,508

9,318

Work in process

702

465

Raw materials and supplies

918

840

3,843

4,540

Other current assets
Allowance for doubtful accounts
Total current assets

(3)

(3)

20,572

19,366

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

5,475

5,453

Land

5,492

5,492

659

656

11,627

11,602

3,723

3,599

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

200

200

Total intangible assets

3,923

3,800

19,331

18,041

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

590

600

3,987

4,988

Allowance for doubtful accounts

(98)

(98)

Total investments and other assets

23,81023,532

Total noncurrent assets
Total assets-5-39,361

38,93559,93458,301５．（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended

End of the First Quarter ofFebruary 28, 2019

the Fiscal Year Ending(As of February 28, 2019)

February 28, 2020
(As of May 31, 2019)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

3,582

Income taxes payable

3,462

393

Short-term loans payable

―

1,400

Provision for bonuses

4,157

214

302

Provision for directors' bonuses

8

12

Asset retirement obligations

20

11

Other

2,724

4,280

Total current liabilities

10,013

10,558Long-term loans payable

175

175

Provision for directors' retirement benefits

43

49

Net defined benefit liability

507

493

Noncurrent liabilities:

Asset retirement obligations

1,040

1,044

Other

4,566

4,620

Total noncurrent liabilities
Total liabilities

6,332

6,383

16,346

16,942NET ASSETS
Shareholders’ equity:
Capital stock

2,486

2,486

Capital surplus

18,057

18,057Retained earnings

31,38031,315

Treasury stock(13,180)(14,609)

Total shareholders’ equity

38,74337,249

4,845

4,121

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

(1)

(5)

(161)

(161)

Foreign currency translation adjustments

69

64

Remeasurements of defined benefit plans

1

1

4,753

4,019

Revaluation reserve for land

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

-6-

90

90

43,58741,35959,93458,301

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

Fiscal Year Ended

Fiscal Year Ending

February 28, 2019

February 28, 2020

(March 1, 2018 to(March 1, 2019 to

May 31, 2018)

May 31, 2019)

Net sales

11,216

11,143

Cost of Sales

4,718

4,764

Gross profit

6,497

6,379

Selling, general and administrative expenses

5,300

5,135

Operating income

1,196

1,243

Interest income

912Dividends received
Equity in earnings of affiliates

8

50

237

―

Rent of real estate for investment18

18

Foreign exchange gains

12

4

Other

31

16

Total non-operating income

318

102

Non-operating income

Non-operating expenses
Interest expenses

00

Depreciation of real estate for investment

1

1

Management cost for real estate for investment

00Commission for purchase of treasury shares―

2

Loss on insurance cancellation

0

―

Other

0

0

Total non-operating expenses

2

4

1,512

1,341

―
―

99

139

Total extraordinary losses―――

Net income before income taxes

Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income

99

Extraordinary loss
Loss on valuation of investment securities
Loss on closing of stores

8
147

1,512

1,292

Income taxes ― current

459

370

Income taxes ― deferred

9

117

469

487

Net income

1,043

805

Profit attributable to owners of parent

1,043

805

Total income taxes-7-

Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative(Millions of yen)First Quarter of theFirst Quarter of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2019

February 28, 2020

(March 1, 2018 to(March 1, 2019 to

May 31, 2018)
Income before minority interests

May 31, 2019)
1,043

805

Other valuation difference on available-for-sale securities

54

(724)

Deferred gains or losses on hedges
Foreign currency translation adjustments

17

(4)

(19)

(5)

Remeasurements of defined benefit plans, net of tax

13

(0)

(15)

―

51
1,095

(734)
70

1,095

70

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-8-

(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Additional Information)(Transactions to Provide Company Stock to Employees through a Trust)
The Company has introduced an employee stock ownership plan trust (“ESOP trust”) as an incentive toemployees to increase medium- to long-term corporate value, conducting transactions to provide
Company stock to employees’ shareholding association through a trust.
i. Transaction summary
The Company established a trust with the beneficiaries as employees who participate in the YONDOSHIHOLDINGS Employees’ Shareholding Association (“the Shareholding Association”) and satisfy
certain requirements. The trust acquires Company stock in an amount expected to be procured by the
Shareholding Association over a five-year period, and sells the shares to the Shareholding Association
on a fixed date each month. When the trust is concluded, if the trust has earned a profit from a rise in
the share price, the funds are distributed to the employee beneficiaries in proportion to their contribution.
If a loss is incurred due to a decline in the share price, and debt pertaining to the trust property remains,in accordance with the guarantee article in the loan agreement the Company will discharge the entire
debt to the bank, with no additional burden placed on employees.
ii. Matters concerning the Company’s stock held in the trust
Company stock remaining in the trust is recorded as treasury shares under net assets at book value tothe trust (excluding ancillary expenses). At the end of the subject fiscal year, the book value of thesubject treasury shares was ¥170 million, for 61,800 shares at the end of the previous consolidated fiscal
year, and ¥144 million, for 52,200 shares at the end of the first quarter of the subject consolidated fiscal
year.
iii. Book value of debt recorded through application of the gross method
At the end of the previous consolidated fiscal year: ¥175 million
At the end of the first quarter of the subject consolidated fiscal year: ¥175 million(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 ¥126 million, for 50,000 shares at the end of the previous consolidated
fiscal year, and ¥118 million, for 46,823 shares at the end of the first quarter of the subject consolidated
fiscal year.
(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)-9-From the subject fiscal year, the Company has applied “Partial Amendments to Accounting Standard
for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018). Deferred tax assets are shownin “Investments and other assets,” and deferred tax liabilities in “Non-current liabilities.”(Repurchase of the Company’s Own Shares)
YONDOSHI HOLDINGS resolved to repurchase the Company’s own shares pursuant to Article 156 of
the Corporations Law of Japan as applied under Article 165-3 of the said Corporations Law, following
a meeting of its Board of Directors held on April 10, 2019.
1. Reasons for repurchasing the Company’s own sharesThis resolution was made to ensure that the Company maintained a flexible capital policy that is
capable of appropriately addressing changes in its operating environment and to facilitate theadequate return of profits to shareholders.
2. Repurchase details(1) Class of shares to be repurchased: YONDOSHI HOLDINGS’ common shares(2) Total number of shares to be repurchased: Up to a maximum of 1,350,000 shares(3) Aggregate cost of share repurchase: Up to a maximum of ¥3,500,000,000(4) Repurchase method: 1. Repurchase through the ToSTNeT-3 off-hours trading system
2. Market purchase based on a trust agreement relating to repurchase of theCompany’s own shares(5) Repurchase period: April 11, 2019 to September 30, 2019(6) Other: In accordance with a decision by the Board of Directors, the Company acquired 510 thousand
shares of the Company’s ordinary stock between April 11, 2019, and May 31, 2019, with anacquisition value of ¥1,184 million.

- 10 -

(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 28, 2019 (March 1, 2018 to May 31, 2018)
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

6,672

4,543

11,216―

11,216

0

229

229

(229)

―

Total

6,672

4,773

11,446(229)

11,216

Segment income

1,012

223

1,236

(39)

1,196

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥39 million for segment income mainly includes amortization of goodwill totaling minus¥124 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥127 million and elimination of inter-segment transactions of ¥212 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 quarter of the fiscal year ending February 28, 2020 (March 1, 2019 to May 31, 2019)
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

6,420

4,723

11,143―

11,143

―

171

171

(171)

―

Total

6,420

4,894

11,314(171)

11,143

Segment income

1,031

284

1,316

(73)

1,243

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥73 million for segment income mainly includes amortization of goodwill totaling minus¥124 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥147 million and elimination of inter-segment transactions of ¥198 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.

- 11 -