CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
NINE-MONTH PERIOD OF THE FISCAL YEAR ENDINGFEBRUARY 29, 2020
(March 1, 2019 to November 30, 2019)
January 7, 2020
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): January 8, 2020
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 2019
(March 1, 2019 to November 30, 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

FY2019Nine-Month Period
FY2018Nine-Month Period

Note: Comprehensive income

Millions of yen％

Millions of yen％

Millions of yen％

32,776

(1.4)

3,025

0.8

3,289

(13.6)

2,009

146.7

33,237

(1.8)

3,001

(13.9)

3,805(14.4)

814(75.6)FY2019 Nine-Month Period: 1,958 million yen (179.5%)
FY2018 Nine-Month Period: 700 million yen (－82.6%)

Net Income
per Share

FY2019Nine-Month Period
FY2018Nine-Month Period

Net Income per
Share after Dilution
Yen

Yen

90.49

90.49

31.71

31.70

(Reference) Operating income before the amortization of goodwill:
FY 2019 Nine-Month Period: ¥3,397 million FY 2018 Nine-Month Period: ¥3,374 million
The Company considers operating income before the amortization of goodwill to be an important management indicator.

(2) Consolidated Financial Position
Total Assets

Net Assets per Share%Yen

58,68740,32768.6

1,857.81

60,284

43,58772.2

1,883.28

Millions of yen

November 30, 2019
February 28, 2019

Net Assets to Total
AssetsNet Assets
Millions of yen(Reference)Shareholders’ equity: November 30, 2019: 40,251 million yen
February 28, 2019: 43,497 million yen
Note: YONDOSHI HOLDINGS has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting” Statement
No. 28 issued by the Accounting Standards Board of Japan (ASBJ) on February 16, 2018 effective from the start of the first quarter ofthe fiscal year under review. Data relating to the Company’s financial position as of the previous fiscal year is presented after
retroactively adjusting figures in accordance with the above.

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
40.00

—
—

37.50

75.00

40.00

80.00

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

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 29, 2020
(March 1, 2019 to February 29, 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

Fiscal year
endingFebruary 29,
2020

47,300%0.4

Millions of yen

%

5,100

2.3

Millions of yen

5,400

%

(20.6)

Millions of yen

3,400

%

39.3

Yen en153.14

Note: Revisions to consolidated operating forecasts for the third quarter of the fiscal year ending February 28, 2020: No(Reference) Forecast EPS before the amortization of goodwill for the full FY 2019 is ¥175.50.

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:
November 30, 2019: 24,331,356 sharesFeb. 28, 2019: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
November 30, 2019: 2,664,986 sharesFeb. 28, 2019: 6,234,634 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2019 Nine-Month Period: 22,202,155 shares FY2018 Nine-Month Period: 25,687,725 shares
Note: The number of recorded treasury stock includes 37,000 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust (hereinafter referred to the “the Trust”) and
45,353 of the Company’ shares held by the Shares Grant Trust for Officers as of the end of the second quarterof 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 consolidated quarterly financial statements in units ofthousands of yen, but from the first quarter period of FY 2019 and the first quarter cumulative period of
FY 2019, the Company has changed the unit to millions of yen. Meanwhile, figures from the previous
consolidated fiscal year and the previous consolidated third quarter cumulative period are also presented
in millions of yen to facilitate a comparison.

-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(3)

Consolidated Quarterly Statements of Income Third Quarter Cumulative

7

Consolidated Quarterly Statements of Comprehensive Income Third Quarter Cumulative

8

Notes to Consolidated Quarterly Financial Statements

9(Notes Regarding Going Concern Assumptions)9(Note in the Event of a Significant Change in the Amount of Shareholders’ Equity)

9(Additional Information)

9(Segment Information)

10

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1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the third quarter cumulative period (March 1, 2019 to November 30, 2019) of fiscal 2019, thefiscal year ending February 29, 2020, the Japanese economy recovered at a moderate pace on
improvement in corporate earnings and employment conditions. However, the outlook remained clouded
due to such concerns as how the direction of trade issues will affect the global economy.
In the retail industry, business conditions remained difficult as a result of a falloff in consumption
following the increase in the consumption tax and the impact from typhoons and other natural disasters,
as well the 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, the Company 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 ¥32,776 million(down 1.4% from the same period of the previous fiscal year), with operating income of ¥3,025 million(up 0.8%). Ordinary income declined to ¥3,289 million (down 13.6%) because equity in earnings ofaffiliates was not recorded from the subject fiscal year, but tax expenses also decreased, resulting in a gainin profit attributable to owners of parent to ¥2,009 million (up 146.7%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group recorded declines in both net sales and operating income from the same periodof the previous fiscal year, due in part to the impact from the consumption tax hike.
As a result, net sales in the Jewelry Business segment amounted to ¥18,846 million (down 3.8% fromthe same period of the previous fiscal year), with operating income of ¥2,410 million (down 6.9%).
Apparel Business
The AS’TY Group substantially improved its earning capacity by strengthening measures with majorclients, and enhancing its production management capabilities. Retailer age Co., Ltd. posted gains fromexpanded openings of new locations for its everyday fashion brand PALETTE, and successful efforts toimprove the gross margin by scaling back inventory of seasonal goods.
As a result, net sales in the Apparel Business segment amounted to ¥13,929 million (up 2.1% from thesame period of the previous fiscal year), with operating income of ¥766 million (up 37.4%).
(2) Explanation of Financial Condition
Total assets at the end of the subject third quarter cumulative period (November 30, 2019) amounted to¥58,687 million, a decrease of ¥1,596 million from the end of the previous fiscal year (February 28, 2019).
This was due mainly to a decrease of ¥1,539 million in cash and deposits. Total liabilities amounted to¥18,360 million, an increase of ¥1,663 million. This was due mainly to an increase of ¥2,600 million in
short-term borrowings. Total net assets amounted to ¥40,327 million, a decrease of ¥3,260 million. Thiswas due mainly to a decrease of ¥10,838 million in capital surplus resulting from the cancellation oftreasury shares, against a decrease of ¥7,381 million in treasury shares (net asset increase) from thecancellation and purchase of treasury shares.
(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
February 28, 2019
(As of February 28, 2019)

End of the Third Quarter of
the Fiscal Year Ending
February 29, 2020
(As of November 30, 2019)

2,249
2,854
1,500
8,508
702
918
3,166
(3)

709
4,021

19,895

19,493

5,475
5,492
659

5,298
5,492
716

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Short-term investment securities
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
Total property, plant and equipment

―
9,658
676
1,275
3,155
(4)

11,627

11,507

Intangible assets:
Goodwill
Other intangible assets

3,723
200

3,351
215

Total intangible assets

3,923

3,567

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

19,331
590
5,015
(98)

18,658
620
4,884
(44)

Total investments and other assets

24,83824,11840,38939,19460,28458,687

Total noncurrent assets
Total assets

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５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 28, 2019
(As of February 28, 2019)

End of the Third Quarter of
the Fiscal Year Ending
February 29, 2020
(As of November 30, 2019)

3,582

3,462
214
8
20
2,724

4,893
2,600
123
138
376
14
32
3,543

10,013

11,722

175
43
507
1,040
4,917

―

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Asset retirement obligations
Other

―
―

Total current liabilities
Noncurrent liabilities:
Long-term loans payable
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total noncurrent liabilities

68
490
1,070
5,008

6,683

6,637

Total liabilities

16,696

18,360

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

2,486
18,057
31,380(13,180)

2,486
7,218
31,641(5,798)38,74335,549Other 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

4,845
(1)
(161)
69
1

4,787
6
(161)
71
(0)

Total other accumulated comprehensive income

4,753

4,702

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

-6-

90

75

43,58740,32760,28458,687

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Third Quarter Cumulative(Millions of yen)
Nine-Month Period of the
Fiscal Year Ended
February 28, 2019
(March 1, 2018 toNovember 30, 2018)

Nine-Month Period of the
Fiscal Year Ending
February 29, 2020
(March 1, 2019 toNovember 30, 2019)

Net sales
Cost of Sales

33,237
14,194

32,776
14,114Gross profit

19,043

18,661

Selling, general and administrative expenses

16,041

15,636

Operating income

3,001

3,025
35
144

Foreign exchange gains
Other

33
60
658
54
16
44

Total non-operating income

867

286

0
3
1

1
3
1
9

Non-operating income
Interest income
Dividends received
Equity in earnings of affiliates
Rent of real estate for investment

Non-operating expenses
Interest expenses
Depreciation of real estate for investment
Management cost for real estate for investment
Commission for purchase of treasury shares
Loss on valuation of derivatives
Other

―

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores
Loss on valuation of investment securities

―
54
0
51

54
3

―

63

21

3,805

3,289

244

99

244

99

136
8

188
40
144

―

6

Total extraordinary losses

145

372

Net income before income taxes

3,905

3,016

Income taxes ― current
Income taxes ― deferred

1,286
1,804

929
77

Total income taxes

3,090

1,007

Net income

814

2,009

Profit attributable to owners of parent

814

2,009

-7-

Consolidated Quarterly Statements of Comprehensive Income
Third Quarter Cumulative(Millions of yen)
Nine-Month Period of the
Fiscal Year Ended
February 28, 2019
(March 1, 2018 toNovember 30, 2018)
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
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-

Nine-Month Period of the
Fiscal Year Ending
February 29, 2020
(March 1, 2019 toNovember 30, 2019)

814

2,009

(467)
23
(12)
29

(57)
7
1
(1)

312

―

(113)
700

(50)
1,958

700

1,958

(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Note in the Event of a Significant Change in the Amount of Shareholders’ Equity)
At a meeting of its Board of Directors held on October 7, 2019, the Company decided to cancel
treasury shares in accordance with the provisions of Article 178 of the Companies Act. As a result of
this cancellation, during the subject third quarter cumulative period, capital surplus decreased by¥10,852 million to ¥7,218 million at the end of the period, and treasury shares decreased by ¥10,852
million to ¥5,798 million.
(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 ¥102 million, for 37,000 shares at the end of the third 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 third quarter of the subject consolidated fiscal year: ¥123 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-9-fiscal year, and ¥114 million, for 45,353 shares at the end of the third quarter of the subject consolidated
fiscal year.
(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
From the subject fiscal year, the Company has applied “Partial Amendments to Accounting Standard forTax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018). Deferred tax assets are shown in“Investments and other assets,” and deferred tax liabilities in “Non-current liabilities.”(Segment Information)
Ⅰ The nine-month period of the fiscal year ended February 28, 2019
(March 1, 2018 to November 30, 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

19,59913,63833,237―33,237

0

685

685

(685)

―

Total

19,60014,32333,923(685)

33,237

Segment income

2,587

557

3,145

(143)

3,001

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥143 million for segment income mainly includes amortization of goodwill totaling
minus ¥372 million, corporate expenses that are not attributable to individual reporting segments amounting to minus¥405 million and elimination of inter-segment transactions of ¥634 million. Corporate expenses are primarily generaladministrative 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(Major Impairment Loss Relating to Fixed Assets)
An impairment loss relating to fixed assets was posted in the Jewelry Business segment. The posted value of this
impairment loss during the third quarter of the fiscal year under review was ¥110 million.

Ⅱ The nine-month period of the fiscal year ending February 29, 2020
(March 1, 2019 to November 30, 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

18,846

13,92932,776―32,776

0

451

452

(452)

―

Total

18,847

14,38133,228(452)

32,776

Segment income

2,410

766

3,176

(151)

3,025

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers- 10 -

Notes:1. The adjustment amount of minus ¥151 million for segment income mainly includes amortization of goodwill totaling
minus ¥372 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥401 million and elimination of inter-segment transactions of ¥622 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(Major Impairment Loss Relating to Fixed Assets)
An impairment loss relating to fixed assets was posted in the Jewelry Business segment. The posted value of this
impairment loss during the third quarter of the fiscal year under review was ¥162 million.

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