CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
NINE-MONTH PERIOD OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2018
(March 1, 2017 to November 30, 2017)

January 9, 2018

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): January 12, 2018
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 Nine-Month Period of Fiscal 2017
(March 1, 2017 to November 30, 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％

4,445(7.1)

3,332

7.4

4,784

24.8

3,103

35.5

FY2017
33,834(1.9)
3,487(12.0)
Nine-Month Period
FY201634,477(5.0)
3,965
17.5
Nine-Month Period
Note: Comprehensive income 3Q FY2017: 4,018 million yen (16.4%)
3Q FY2016: 3,451 million yen (32.8%)
Net Incomeper ShareFY2017Nine-Month Period
FY2016Nine-Month Period

Net Income per
Share after Dilution
YenYen130.53130.34120.68120.56(2) Consolidated Financial Position
Total Assets

Net Assets

Net Assets to TotalAssets

Net Assets per Share%Yen51,723

78.2

2,014.42

62,42049,074
February 28, 2017
(Reference)
Shareholders’ equity: November 30, 2017: 51,614 million yen
February 28, 2017: 48,959 million yen

78.4

1,920.55

Millions of yen

November 30, 2017

Millions of yen

66,044

2. 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
32.50

—
—

25.00

50.00

32.50

65.00

Note: Revision to the most recently announced cash dividend forecast: 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

Fiscal year
endingFebruary 28,2018

48,500%(2.6)

Millions of yen

%

6,150

(5.8)

Millions of yen

7,650

%

Millions of yen(1.9)

5,550%

Yen

11.8

217.39Note: Revision to the most recently announced operating results forecast: YesNotes(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:
November 30, 2017: 29,331,356 sharesFeb. 28, 2017: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
November 30, 2017: 3,709,044 sharesFeb. 28, 2017: 3,838,799 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidatedperiod)
FY2017 Nine-Month Period: 25,530,116 shares FY2016 Nine-Month Period: 25,719,874 shares
The number of recorded treasury stock is inclusive of 111,300 of the Company’s shares held by
the YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust Account as ofthe end of the quarterly fiscal period.
The quarterly financial report is not subject to the quarterly 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 arebased 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.

-2-

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

4Consolidated 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

Third Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income(3)

Third Quarter Cumulative

78Notes to Consolidated Quarterly Financial Statements

9(Notes Regarding Going Concern Assumptions)9(Notes Regarding Substantial Changes in Shareholders’ Equity)9(Additional Information)

9(Segment Information)

9-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the third quarter cumulative period of the fiscal year ending February 2018 (March 1, 2017 toNovember 30, 2017), the Japanese economy recovered at a moderate pace owing to improvement incorporate earnings and employment conditions, while overseas the outlook remained turbid as a resultof such factors as political instability and rising geopolitical risk.
In the retail industry, business conditions remained unstable amid persistent budget-consciousness
arising from uncertainty about the future, despite indications of improved personal consumption
together with 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 implemented 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 third quarter cumulative period amounted to ¥33,834 million(down 1.9% from the same period of the previous fiscal year), with operating income of ¥3,487 million(down 12.0% YoY), ordinary income of ¥4,445 million (down 7.1% YoY), and profit attributable toowners of parent of ¥3,332 million (up 7.4% YoY).
Operating results by business segment were as follows.

Jewelry BusinessThe F.D.C. Products Group posted a revenue decline year on year as bridal jewelry sales fell short ofexpectations. The 4°C BRIDAL brand, pursuing independence as a specialty shop, is moving forwardwith large-scale product development, and expanding the scope of its promotional measures.
As a result, net sales in the Jewelry Business segment for the subject period amounted to ¥20,832
million (down 4.7% YoY), with operating income of ¥3,054 million (down 12.7% YoY).
Apparel Business
The AS’TY Group strengthened measures with major clients utilizing its product planning capabilities
and overseas production framework. Revenue increased from the same period of the previous fiscal year,
though operating income declined. Retailer age Co., Ltd. achieved positive returns from expanded
openings of new locations for its mainstay everyday fashion brand PALETTE, along with measures tostrengthen sales promotions.
As a result, net sales in the Apparel Business segment for the subject period amounted to ¥13,002
million (up 3.0% YoY), with operating income of ¥491 million (down 9.2% YoY).
(2) Explanation of Financial Condition
Total assets at the end of the subject third quarter cumulative period (November 30, 2017) amounted to¥66,044 million, an increase of ¥3,623 million compared with the end of the previous fiscal year
(February 28, 2017). This was due mainly to increases of ¥2,454 million in merchandise and finishedgoods, and ¥1,770 million in investment securities. Total liabilities amounted to ¥14,321 million, anincrease of ¥974 million compared with the end of the previous fiscal year. This was due mainly to anincrease of ¥1,665 million in notes and accounts payable―trade; against a decrease of ¥1,021 million inincome taxes payable. Total net assets at of the end of the subject fiscal year amounted to ¥51,723
million, an increase of ¥2,649 million compared with the end of the previous fiscal year.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
For matters relating to full-year forecasts for the fiscal year ending February 28, 2018, see “NoticeConcerning Revisions to Forecasts of Consolidated Operating Results for the Fiscal Year Ending
February 28, 2018” released today (January 9, 2018).

-4-2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Third Quarter ofFebruary 28, 2017

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

February 28, 2018
(As of November 30, 2017)

ASSETS
Current assets:
Cash and deposits

2,088,219

2,183,482

Notes and accounts receivable ― trade

3,137,084

3,915,666

Short-term investment securities

3,200,000

2,250,000

Merchandise and finished goods

7,453,776

9,908,714

Work in process

844,796590,064

Raw materials and supplies703,247

521,405

1,139,152

1,249,983

Other current assets
Allowance for doubtful accounts
Total current assets(2,357)(2,854)

18,563,921

20,616,460

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

5,682,408

6,122,948

Land

5,492,215

5,492,215

951,801

887,596

12,126,426

12,502,761

4,716,796

4,344,417

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

213,275

138,578

Total intangible assets

4,930,072

4,482,996

22,248,070

24,019,002Investments and other assets:
Investment securities
Net defined benefit asset
Other

520,200

550,593

4,140,338

3,981,008

Allowance for doubtful accounts(108,150)(108,087)

Total investments and other assets

26,800,458

28,442,517

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

45,428,274

62,420,878

66,044,735

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

End of the Third Quarter ofFebruary 28, 2017

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

February 28, 2018
(As of November 30, 2017)

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

Income taxes payable

1,141,834

5,620,967
120,230

Provision for bonuses

351,451

483,933

Provision for directors' bonuses

65,05045,601

Asset retirement obligations

1,000

32,073Other

3,176,938

3,267,699

Total current liabilities

8,692,207

9,570,504

Noncurrent liabilities:
Long-term loans payable

378,940

324,660

Provision for directors' retirement benefits

378,418

401,878

Net defined benefit liability

573,336580,228

Asset retirement obligations

993,306

1,014,548

2,330,212

2,429,246

Other
Total noncurrent liabilities
Total liabilities

4,564,214

4,750,561

13,346,422

14,321,066

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,846,520

Capital surplus

18,145,727

18,164,393

Retained earnings

33,727,198

35,542,976

Treasury stock(6,510,635)(6,377,223)

Total shareholders’ equity

47,848,810

49,816,666

1,336,181

1,969,834

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

16,9591,475(161,985)(161,985)

Foreign currency translation adjustments

72,94066,977

Remeasurements of defined benefit plans(153,265)(78,924)

Total other accumulated comprehensive income

1,110,829

1,797,377

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

114,815

109,625

49,074,456

51,723,669

62,420,878

66,044,735

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Third Quarter Cumulative(Thousands of yen)Nine-Month Period of theNine-Month Period of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toNovember 30, 2016)

November 30, 2017)

Net sales

34,477,000

33,834,617

Cost of Sales

14,242,401

14,239,649

Gross profit

20,234,599

19,594,968

Selling, general and administrative expenses

16,269,321

16,106,995

Operating income

3,965,277

3,487,973

Non-operating income
Interest income

13,50915,842

Dividends received
Equity in earnings of affiliates

57,73957,997704,238

794,692

Rent of real estate for investment

54,85554,855―17,802Foreign exchange gains
Other

25,13823,568

Total non-operating income

855,480

964,757

Non-operating expenses
Interest expenses

182

137

Depreciation of real estate for investment

3,523

3,514

Management cost for real estate for investment

1,534

1,548

Commission for purchase of treasury shares

833
22,520

―
―

Other

8,120

1,775

Total non-operating expenses

36,715

6,975

4,784,042

4,445,755―

228,883

Foreign exchange losses

Ordinary income
Extraordinary income
Gain on change in equity
Settlement received

23,400―Total extraordinary income

23,400228,883

Impairment loss

45,82469,511

Loss on sales of shares of subsidiaries and associates

493,781
17,000

5,676

Extraordinary loss

Loss on closing of stores―

Loss on abandonment of inventories

13,658―

Total extraordinary losses

570,264

75,187

Net income before income taxes

4,237,178

4,599,452

Income taxes ― current

1,392,252

1,111,942

Income taxes ― deferred(258,982)

155,118

Total income taxes

1,133,270

1,267,061

Net income

3,103,907

3,332,390

Profit attributable to owners of parent

3,103,907

3,332,390-7-Consolidated Quarterly Statements of Comprehensive Income
Third Quarter Cumulative(Thousands of yen)

Income before minority interests

Nine-Month Period of theNine-Month Period of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2017

February 28, 2018

(March 1, 2016 to(March 1, 2017 toNovember 30, 2016)

November 30, 2017)

3,103,907

3,332,390

Other comprehensive income
Other valuation difference on available-for-sale securities

214,488496,701

Deferred gains or losses on hedges
Foreign currency translation adjustments

70,303(15,168)(45,649)(5,963)Remeasurements of defined benefit plans, net of tax

48,01339,901

Revaluation reserve for land

(10,415)―70,833

171,076

347,575
3,451,483

686,547
4,018,938

3,451,483

4,018,938――

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 TaxAssets” (Accounting Standards Board of Japan (ASBJ) Guidance No. 26, March 28, 2016), from thefirst quarter period of the subject fiscal year.
(Segment Information)
Ⅰ The nine-month period of the fiscal year ended February 28, 2017
(March 1, 2016 to November 30, 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

21,856,236

12,620,763

34,477,000―

34,477,000

21,400690,777

712,177(712,177)

―

Total

21,877,636

13,311,541

35,189,177(712,177)

34,477,000

Segment income

3,500,634

540,577

4,041,211(75,933)

3,965,277

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥75,933 thousand for segment income mainly includes corporate expenses that are notallocated to individual reporting segments. 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.
ⅡThe nine-month period of the fiscal year ending February 28, 2018
(March 1, 2017 to November 30, 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 BusinessNet sales to outside
customers
Intrasegment net sales andtransfers

20,832,506

13,002,111

33,834,617―

33,834,617

1,023

697,185698,208(698,208)

―

Total

20,833,529

13,699,297

34,532,826(698,208)

33,834,617

Segment income

3,054,929

491,048

3,545,977(58,003)3,487,973

Net sales

Notes:
1. The adjustment amount of minus ¥58,003 thousand for segment income mainly includes corporate expenses that are notallocated to individual reporting segments. 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.

-9-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.

- 10 -