CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
NINE-MONTH PERIOD OF THE FISCAL YEAR ENDINGFEBRUARY 29, 2016
(March 1, 2015 to November 30, 2015)

January 6, 2016

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 Iwamori, Executive Director and Executive Officer responsible forOperations
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): January 14, 2016
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 Nine-Month Period of Fiscal 2015
(March 1, 2015 to November 30, 2015)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)Net sales
Operating Income
Ordinary Income
Net Income％

Millions of yen％

Millions of yen

FY201536,299
1.1
3,376
2.2
Nine-Month Period
FY201435,910
4.2
3,304
10.6
Nine-Month Period
Note: Comprehensive income 3Q FY2015: 2,578 million yen (-4.9%)
Net Income
per Share

FY2015Nine-Month Period
FY2014Nine-Month Period

Millions of yen％

Millions of yen

％

3,812

0.1

2,271

(0.7)

3,810

8.1

2,288

14.2

3Q FY2014: 2,712 million yen (8.7%)

Net Income per
Share after Dilution
Yen

Yen

86.28

86.11

84.39

84.24

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

November 30, 2015

Net Assets to Total
AssetsNet Assets per Share

%

Yen

72.6

1,735.59

Millions of yen

61,73944,86760,99045,83075.1
1,722,67
February 28, 2015
(Reference)
Shareholders’ equity: November 30, 2015: 44,810 million yen
February 28, 2015: 45,787 million yen

2. Dividends
Dividends per Share
(Record Date)

End of 1Q

End of 2Q
Yen

End of 3Q
Yen

Fiscal 2014—
16.00
Fiscal 2015—
20.00
Fiscal 2016
(Forecast)
Note: Revision to the most recently announced cash dividend forecast: No-1-

AnnualYear-end
Yen

Yen

Yen

—
—

16.00

32.00

20.00

40.00

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 29, 2016
(March 1, 2015 to February 29, 2016)(% figures for the full fiscal year represent year-on-year increase or decrease)
Net Income
Operating Income
Ordinary Income
Net Income
per Share

Net Sales
Millions of yen%

Millions of yen%

Millions of yen

Fiscal year
ending52,500
3.5
5,800
6.1
6,700
February 29,
2016
Note: Revision to the most recently announced operating results forecast: No%

7.8

Millions of yen

4,100

%

Yen

12.6

155.72Notes(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: Yes
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, 2015: 29,331,356 sharesFeb. 28, 2015: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
November 30, 2015: 3,512,797 sharesFeb. 28, 2015: 2,752,078 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2015 Nine-Month Period: 26,328,828 shares
FY2014 Nine-Month Period: 27,116,636 shares
The number of recorded treasury stock is inclusive of 185,900 of the Company’s shares held by
the YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust Account as ofthe end of the quarterly fiscal period.
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the nine-month period of fiscal 2015 is not subject to the quarterly review
procedures stipulated in the Financial Instruments and Exchange Act of Japan. As of the date of disclosureof this report, the review procedures for the quarterly financial statements under the Financial Instruments
and Exchange Act had not been completed.
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 “Explanationof Consolidated Results Forecasts and Other Future Predictions” on page 5.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

5(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Summary Information (Notes)

5(1)Changes in Important Subsidiaries During the Period

5(2)Application of Special Accounting Practices in the Preparation of the Quarterly

5

Consolidated Financial Statements

3.

(3)

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

5(4)Additional Information

6

Consolidated Quarterly Financial Statements

7(1)

Consolidated Quarterly Balance Sheets

7(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

9Comprehensive Income
Consolidated Quarterly Statements of Income

Third Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income(3)

Third Quarter Cumulative

9
10

Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)11(Notes Regarding Substantial Changes in Shareholders’ Equity)

11(Segment Information)

11

-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 2016 (March 1, 2015 toNovember 30, 2015), the Japanese economy showed signs of recovery, due mainly to higher earnings at
certain companies and an improvement in employment conditions. However, the outlook for future
market conditions became increasingly uncertain, reflecting such factors as the decline in real wages,
prolonged sluggishness in consumer spending, and downside risks associated with overseas economies
including China.
In the retail industry, despite signs of inbound demand in metropolitan areas, unstable conditions
continued with the persistent trend toward frugality.
Under these circumstances, during the fiscal year ending February 2016, the initial year of the fourth
medium-term management plan, the YONDOSHI HOLDINGS Group continued to nurture humanresources, bolster product capabilities, 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 corporategroup, and endeavored to enhance corporate value by strengthening internal controls, providing
shareholder returns, and making medium to long-term investments linked to earnings growth.
As a result, net sales amounted to ¥36,299 million (up 1.1% YoY) for the subject third quarter
cumulative period, with operating income of ¥3,376 million (up 2.2% YoY), ordinary income of ¥3,812
million (up 0.1% YoY), and net income of ¥2,271 million (down 0.7% YoY).
Of note, for a third quarter cumulative period, net sales rose for fourth consecutive year, while
operating income and ordinary income reached record highs for a fifth consecutive year.
Operating results by business segment were as follows.
YONDOSHI HOLDINGS revised its business segment classifications from the first quarter of thesubject fiscal year (ending February 2016). Year-on-year comparative data is after restating figures for thecorresponding period of the previous fiscal year in accordance with revised business segmentclassifications.
Jewelry BusinessAt the F.D.C. Products Group, sales at mainstay 4°C brand jewelry stores rose steadily, mainly as a resultof expansion in the range of items and zones following renovation of existing locations, and the openingof composite shops. Sales exceeded plan at 4°C BRIDAL stores on expanded sales promotions, at canal
4°C stores from continued proactive opening of new store locations, and at Luria 4°C, handling purses
and other small leather goods.
As a result, net sales in the Jewelry Business segment amounted to ¥20,505 million (up 7.5% YoY),
with operating income of ¥3,325 million (up 10.7% YoY). Segment sales reached record highs for a
fourth consecutive year, and operating income for a sixth consecutive year.
Apparel Business
The AS’TY Group continued to shift production from China to Bangladesh in line with its business plan,but faced difficulties due to the slump in market conditions. MISUZU Co., Ltd. made efforts to spur sales
at existing stores by strengthening individual products and promotional activities, but struggled as a resultof unseasonable weather and other factors. age Co., Ltd. achieved increases in both revenue and earnings
from steady sales at existing locations of its mainstay everyday fashion brand PALETTE, and new store
openings.
As a result, net sales in the Apparel Business segment amounted to ¥15,794 million (down 6.2%
YoY), with operating income of ¥120 million (down 72.6% YoY).

-4-

(2) Explanation of Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of the subject third quarter cumulative period (November 30, 2015) amounted to¥61,739 million, an increase of ¥748 million from the end of the previous fiscal year (February 28, 2015).
This was due mainly to increases of ¥1,958 million in merchandise and finished goods; and ¥823 million
in notes and accounts receivable―trade; against a decrease of ¥2,000 million in short-term investment
securities. Total liabilities amounted to ¥16,871 million, an increase of ¥1,712 million from the end of theprevious fiscal year. This was due mainly to increases of ¥1,266 million in notes and accounts
payable—trade; and ¥1,151 million in short-term loans payable; against a decrease of ¥1,023 million inincome taxes payable. Total net assets at the end of the subject period stood at ¥44,867 million, a decreaseof ¥963 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 13, 2015.

2. Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period
Not applicable(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
Changes in accounting policies(Application of the accounting standard for retirement benefits)
We have adopted the Accounting Standard for Retirement Benefits (ASBJ Statement No.26 issued on
May 17, 2012; hereinafter, the “Accounting Standard for Retirement Benefits”) and the Guidance on
Accounting Standard for Retirement Benefits (ASBJ Guidance No.25 issued on May 17, 2012; hereinafter,
the “Guidance on Accounting Standard for Retirement Benefits”) in accordance with the provisions ofArticle 35 of the Accounting Standard for Retirement Benefits and those of Article 67 of the Guidance on
Accounting Standard for Retirement Benefits starting from the first quarter under review. We reviewed
the calculation methods of retirement benefit obligations and service costs, and changed the method of
attributing all contributions over all periods to periods of service based on the benefit formula instead ofon a straight-line basis, as well as the method of determining a discount rate from the use of a discountrate based on the number of years similar to that of the average remaining service period of employees tothe use of a single weighted average discount rate that reflects the estimated payment period of retirement
benefits and the amount per that period.
We adopt these accounting standard and guidance in accordance with the transitional treatment
specified in Article 37 of the Accounting Standard for Retirement Benefits. Amounts occurred due to suchchanges in calculation methods are recognized by adding to or deducting from retained earnings at the
beginning of the third quarter cumulative period under review.
As a result, net defined benefit asset at the beginning of the subject third quarter cumulative period
increased ¥8,991 thousand, net defined benefit liability decreased ¥28,409 thousand, and retained
earnings increased ¥24,928 thousand. The effect of this change on the Company’s consolidated profit andloss in the subject third quarter cumulative period is negligible.
(Application of Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees
etc. through Trusts)
The “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts” (ASBJ PITF No. 30, December 25, 2013) was applied effective the first quarter of fiscal
2015. With respect to the accounting treatment of trust contracts that were entered into before thebeginning of the first year of the application of the above practical report, the method adopted in the past
will continue to be applied. Accordingly, the application of the above practical report has no effect on the
consolidated quarterly financial statements.

-5-(4) Additional Information(Change in Presentation Method)
Through the third quarter cumulative period of the previous fiscal year, “net sales” and “other operating
revenue” was presented individually. However, because of a decline in the materiality of “other operating
revenue” with regard to consolidated results, from the first quarter of the subject fiscal year, this item ispresented included in “net sales.”Consolidated quarterly financial statements for the third quarter cumulative period of the previous
fiscal year have been recombined to reflect this change in the presentation method. As a result, the¥642,757 thousand presented as “other operating revenue” in the Consolidated Statements of Income forthe third quarter cumulative period of the previous fiscal year has been recombined as “net sales.”-6-3. 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, 2015

the Fiscal Year Ending(As of February 28, 2015)

February 29, 2016
(As of November 30, 2015)

ASSETS
Current assets:
Cash and deposits

1,952,933

1,237,564

Notes and accounts receivable ― trade

3,451,619

4,274,730

Short-term investment securities

2,000,000―

Merchandise and finished goods

7,383,018

9,341,882

Work in process

871,733

724,128

Raw materials and supplies

723,203804,981

Other current assets

928,872

895,817

Allowance for doubtful accounts(7,625)(10,246)

17,303,755

17,304,858

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

5,546,145

6,042,386

Land

5,528,465

5,528,465

Other, net

1,428,388

1,124,180

Total property, plant and equipment

12,502,999

12,695,032

5,709,806

5,337,427

Intangible assets:
Goodwill
Other intangible assets

565,366

424,021

Total intangible assets

6,275,172

5,761,448

Investment securities

20,025,792

20,774,357

Prepaid pension cost

614,916

657,747

4,384,391

4,656,904

Investments and other assets:

Other
Allowance for doubtful accounts(116,688)(111,269)

Total investments and other assets

24,908,410

25,977,738

Total noncurrent assets
Total assets-7-

43,686,583

44,434,219

60,990,338

61,739,078

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, 2015

the Fiscal Year Ending(As of February 28, 2015)

February 29, 2016
(As of November 30, 2015)

LIABILITIESCurrent liabilities:
4,170,142

5,436,370

Short-term loans payable

Notes and accounts payable ― trade

48,3101,200,000

Income taxes payable

1,399,367

375,579

Provision for bonuses

355,684

480,785

Provision for directors' bonuses

41,94648,755

Other

4,371,894

4,002,669

Total current liabilities

10,387,344

11,544,159

Noncurrent liabilities:―

536,920

Provision for directors' retirement benefits

385,296416,724

Net defined benefit liability

614,881

597,456

Asset retirement obligations

1,002,570

1,031,747

Other

2,769,597

2,744,686

Long-term loans payable

Total noncurrent liabilities
Total liabilities

4,772,345

5,327,534

15,159,689

16,871,694

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,226,705

18,142,412

Retained earnings

27,049,761

28,369,724

Treasury stock(3,284,842)(5,804,404)

Total shareholders’ equity

44,478,145

43,194,253

1,481,751

1,704,834

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

13,3397,532(233,476)(158,063)

Foreign currency translation adjustments

85,05485,365Remeasurements of defined benefit plans(37,476)(23,497)

Total other accumulated comprehensive income

1,309,192

1,616,171

Subscription rights to shares
Total net assets
Total liabilities and net assets-8-

43,311

56,95745,830,648

44,867,383

60,990,338

61,739,078

(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, 2015

February 29, 2016

(March 1, 2014 to(March 1, 2015 toNovember 30, 2014)

November 30, 2015)

Net sales

35,910,760

36,299,850

Cost of Sales

15,672,387

15,475,626

Gross profit

20,238,372

20,824,224

Selling, general and administrative expenses

16,934,108

17,448,212

Operating income

3,304,264

3,376,011

Non-operating income
Interest income

9,956

12,055

Dividends received
Equity in earnings of affiliates

47,511

55,576

329,918

258,875

Rent of real estate for investment

76,45570,365

Foreign exchange gains

17,751

12,441

Other

69,957

68,183

Total non-operating income

551,549

477,498

Non-operating expenses
Interest expenses
Depreciation of real estate for investment

674

157

4,476

4,426

Management cost for real estate for investment

1,534

1,534

Commission for purchase of treasury stock

35,36425,194

Other

3,654

9,424

Total non-operating expenses

45,70540,7383,810,109

3,812,771

Gain on sales of noncurrent assets

47,797

Gain on liquidation of stocks of subsidiaries and affiliates

104,118
152,665――――

Impairment loss

103,642

151,465

Loss on closing of stores

20,147

6,359

Building demolition costs―

24,372

Ordinary income
Extraordinary income

Other

750

Total extraordinary income
Extraordinary loss

8,880

―

Total extraordinary losses

132,671

182,197

Net income before income taxes

3,830,104

3,630,574

Income taxes ― current

1,273,308

1,289,597

Income taxes ― deferred

268,391

69,329

1,541,700

1,358,926

Other

Total income taxes
Income before minority interests

2,288,403

2,271,647

Net income

2,288,403

2,271,647-9-

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, 2015

February 29, 2016

(March 1, 2014 to(March 1, 2015 toNovember 30, 2014)

November 30, 2015)

2,288,403

2,271,647

Other valuation difference on available-for-sale securities

230,748

176,074

Deferred gains or losses on hedges
Revaluation reserve for land

54,566(6,082)―75,412Foreign currency translation adjustments

9,918

311

Remeasurements of defined benefit plans―

13,979128,41447,283423,647
2,712,051

306,979
2,578,627

2,712,051

2,578,627――

Other comprehensive income

Share of other comprehensive income of associates 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- 10 -

(3) Notes to Quarterly Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Segment Information)
Ⅰ The nine-month period of the fiscal year ended February 28, 2015
(March 1, 2014 to November 30, 2014)
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

19,080,406

16,830,353

35,910,760―

35,910,760

34,217606,138

640,356(640,356)

―

Total

19,114,624

17,436,492

36,551,116(640,356)

35,910,760

Segment income

3,005,069

439,577

3,444,646(140,382)

3,304,264

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥140,382 thousand for segment income mainly includes corporate expenses that are
not allocated 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.
Ⅱ

The nine-month period of the fiscal year ending February 29, 2016
(March 1, 2015 to November 30, 2015)
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

20,505,360

15,794,490

36,299,850―

36,299,850

35,710661,073

696,784(696,784)―

20,541,070

16,455,563

36,996,634(696,784)

36,299,850

3,325,272

120,274

3,445,546(69,534)

3,376,011

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income or loss

Notes:
1. The adjustment amount of minus ¥69,534 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.
2. Segment income or loss figures have been adjusted to operating income on the consolidated quarterly income
statements.

- 11 -

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.

3. Information concerning changes to reporting segments, etc.
The YONDOSHI HOLDINGS Group had previously classified its reporting segments as “F.D.C.
Products Group,” “AS’TY Group,” “MISUZU,” and “age,” based on the respective businesscompanies. In recent years, the brand SPA (Specialty store retailer of Private label Apparel)business centered on 4°C brand jewelry has come to comprise a larger proportion of the corporategroup, and with the idea of evolving into a company closer to customers, from the first quarter ofthe subject fiscal year we have changed the classifications to two segments, the “Jewelry Business”
and “Apparel Business,” based on principle products handled.
Accordingly, the former “F.D.C. Products Group” has been changed to “Jewelry Business,” and“The AS’TY Group,” “MISUZU,” and “age” consolidated as “Apparel Business.”
Comparative segment information between the third quarter cumulative period of the fiscal
year ending February 29, 2016 and the corresponding period of the previous fiscal year is provided
on a revised reporting segment basis.

- 12 -