CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2022
(March 1, 2021 to May 31, 2021)
July 7, 2021
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 8, 2021
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 2021
(March 1, 2021 to May 31, 2021)(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

1Q FY2021
1Q FY2020

8,717

Millions of yen

11.0321％

Millions of yen％

Millions of yen％

42.6

499

40.2

258

95.3

132(83.5)

7,850(29.6)
225(81.8)356(73.4)
Note: Comprehensive income 1Q FY2021: 894 million yen (8.8%) 1Q FY2020: 821 million yen (1,060.1%)
Net Incomeper ShareNet Income perShare after Dilution
Yen

Yen

1Q FY2021
12.08—
1Q FY2020
6.11—(Reference) Operating income before the amortization of goodwill:
1Q FY 2021: ¥445 million
1Q FY 2020: ¥349 million
The Company considers operating income before the amortization of goodwill to be an important managementindicator.

(2) Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Millions of yen%

Yen

39,58472.6

1,845.91

39,54374.6

1,844.69

Millions of yen

May 31, 2021
54,46753,000February 28, 2021
(Reference)
Shareholders’ equity: May 31, 2021: 39,553 million yen

Net Assets per Share

February 28, 2021: 39,513 million yen

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2020
Fiscal 2021
Fiscal 2021
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

——40.50—

40.5081.00

41.50—41.5083.00

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, 2022
(March 1, 2021 to February 28, 2022)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable toNet Income
Operating Income Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen

Interim period
Fiscal year
endingFebruary 28,2022%

18,0000.1

40,500

2.7

Millions of yen%

Millions of yen

500 (52.1)
2,8001.2%

800 (37.7)
3,300

3.3

Millions of yen%

Yen300(50.3)

14.01

2,200

35.6

102.71

Note: Revision to the most recently announced operating results forecast: Yes(Reference) EPS before the amortization of goodwill is ¥125.89.

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: Yes(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, 2021: 24,331,356 sharesFeb. 28, 2021: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2021: 2,903,794 sharesFeb. 28, 2021: 2,911,168 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidatedperiod)First quarter fiscal 2021: 21,420,267 shares First quarter fiscal 2020: 21,693,542 shares
Note: The number of recorded treasury stock includes 59,738 of the Company’ shares held by the Shares
Grant Trust for Officers as of the end of the first quarter of the subject consolidated 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
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 and OtherFuture 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

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 First Quarter Cumulative

7

Consolidated Quarterly Statements of Comprehensive Income

8First Quarter Cumulative

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

9(Application of Special Accounting Treatment in the Preparation of the Consolidated

9Financial Statements)(Additional Information)

9(Accounting Estimates)

9(Segment Information)

10(Important Subsequent Events)

10-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first quarter period (March 1, 2021, to May 31, 2021) of fiscal 2021 (ending February 2022),
conditions in the Japanese economy continued to be strained by the government’s intermittent declarationsof a state of emergency and priority measures to prevent the spread of disease as the COVID-19 situation
showed no sign of abating.
In the retail industry, the outlook remains unclear, with business conditions overall affected by thegovernment’s call for people to remain at home, as well as business suspensions and shortened operating
hours at stores. In addition, consumer spending has slowed as a result of further cooling off in consumer
sentiment amid the worsening employment and income situation.
Under such circumstances, during fiscal 2021, the initial year of the sixth medium-term management
plan, YONDOSHI HOLDINGS Group, in response to the abrupt changes in the business environment,by leveraging the strengths of the corporate group to the fullest extent, will provide products and services
that exceed customer expectations, and aim for further growth. The Company will also make investments
to enhance the value of the mainstay 4°C brand, and pursue growth for fashion brand PALETTE toestablish a second earnings pillar, in order to build a robust business portfolio. Further, the Company has
implemented CSR-based management to establish a highly trusted corporate group, and is working toenhance 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 ¥8,717 million (up 11.0% fromthe same period of the previous fiscal year), with operating income of ¥321 million (up 42.6%), ordinary
income of ¥499 million (up 40.2%) and profit attributable to owners of parent to ¥258 million (up 95.3%).
Operating income before the amortization of goodwill, which the Company considers to be an importantmanagement indicator, amounted to ¥445 million (up 27.5%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group, in response to the state of emergency that continued during the subject firstquarter period, implemented wide-ranging store closures and shortened operating hours. However,compared to the same period of the previous fiscal year the area subject to these measures were limited,resulting in a year-on-year rise in sales.
As a result, net sales in the Jewelry Business segment amounted to ¥3,764 million (up 10.3% from thesame period of the previous fiscal year), with operating income of ¥85 million (down 43.6%).
Apparel Business
Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, achieved increases in net sales
and operating income on the effect of new store openings, an expanded product range, and strengtheningof sales promotion strategies.
The AS’TY Group continued efforts to improve operational efficiency amid scaled back events andsluggish demand due to the COVID-19 situation, achieving results that exceeded plan.
As a result, net sales in the Apparel Business segment amounted to ¥4,953 million (up 11.6% from thesame period of the previous fiscal year), with operating income of ¥349 million (up 80.4%).
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2021) amounted to ¥54,467 million, anincrease of ¥1,467 million from the end of the previous fiscal year (February 28, 2021). This was due
mainly to an increase of ¥1,993 million in investment securities. Total liabilities amounted to ¥14,883
million, an increase of ¥1,426 million from the end of the previous fiscal year. This was due mainly to anincrease of ¥1,600 million in short-term borrowings. Total net assets at the end of the subject periodamounted to ¥39,584 million, an increase of ¥41 million from the end of the previous fiscal year.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
For consolidated results forecasts for fiscal 2021 (ending February 28, 2022), see “Notice of Revision toFiscal 2021 First Half and Full Year Forecasts” released today (July 7, 2021)..

-4-2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

End of the First Quarter ofthe Fiscal Year Ending
February 28, 2022
(As of May 31, 2021)

3,232
2,587
7,718
285
1,081713
(3)

2,114
2,528
8,496
286
898
1,027
(4)

15,616

15,346

4,982
5,492
538

4,905
5,492
519

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
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

11,013

10,916

Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

2,730
201

2,606
182

Total intangible assets

2,932

2,789

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

18,489
487
4,516
(55)

20,483
496
4,488
(53)

Total investments and other assets

23,43825,41437,38339,12053,00054,467

Total noncurrent assets
Total assets

-5-

５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

End of the First Quarter ofthe Fiscal Year Ending
February 28, 2022
(As of May 31, 2021)

3,148－643
269
25－
2,715

3,457
1,600
270
277
130
2,298

6,8027,918

123

121

497
1,428
4,605

494
1,435
4,913

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Provision for share-based remuneration for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Other

6,654

6,965

Total liabilities

Total noncurrent liabilities

13,457

14,883

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

2,486
7,208
31,978(6,215)

2,486
7,208
31,367(6,199)35,45834,862Other 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

4,315
8(233)
75(110)4,947
12(233)71(107)

Total other accumulated comprehensive income

4,055

4,690

Subscription rights to shares
Total net assets
Total liabilities and net assets-6-2930

39,54339,58453,00054,467

(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 the
Fiscal Year Ended
February 28, 2021
(March 1, 2020 to
May 31, 2020)
Net sales
Cost of SalesFirst Quarter of the
Fiscal Year Ending
February 28, 2022
(March 1, 2021 toMay 31, 2021)
7,850
3,735

8,717
4,043

Gross profit

4,114

4,674

Selling, general and administrative expenses

3,889

4,352Operating income

225

321

Non-operating income
Interest income
Dividends received
Rent of real estate for investment

7247
18

Foreign exchange gains
Subsidy income
Other―
―
52047
18
1180
8

Total non-operating income

144

185

11060
10

Non-operating expenses
Interest expenses
Depreciation of real estate for investment
Management cost for real estate for investment
Foreign exchange losses
Provision of allowance for doubtful accounts
Loss on insurance cancellation
Other―
30

Total non-operating expenses―022137

Ordinary income

356499Extraordinary income
Gain on sales of investment securities
Subsidies for employment adjustment

13154

―

168

1223014201――

Total extraordinary income
Extraordinary loss
Impairment loss
Loss on valuation of investment securities
Loss on closing of stores
Allowance for absence from work

121010Total extraordinary losses

239

21

Net income before income taxes

285

491

Total income taxes

152

232

Net income

132

258

Profit attributable to owners of parent

132

258

-7-

Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative(Millions of yen)First Quarter of theFiscal Year Ended
February 28, 2021
(March 1, 2020 toMay 31, 2020)
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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent-8-

First Quarter of the
Fiscal Year Ending
February 28, 2022
(March 1, 2021 toMay 31, 2021)
132258

720
1(34)
1631
3(4)
3688
821

635
894

821894

(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Application of Special Accounting Treatment in the Preparation of the Consolidated FinancialStatements)(Calculation of Tax Expense)
Tax expense has been calculated by rationally estimating the effective tax rate after the application oftax effect accounting for profit before income taxes in the consolidated fiscal year, including the subject
first quarter period, and multiplying this estimated effective tax rate by profit before income taxes.
(Additional Information)(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 (excludingdirectors 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 fromNovember 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 ¥144 million, for 67,136 shares at the end of the previous consolidated
fiscal year, and ¥128 million, for 59,738 shares at the end of the first quarter of the subject consolidated
fiscal year.
(Accounting Estimates)
There are no significant changes in the assumptions regarding the impact from the COVID-19 virus or
accounting estimates from those presented in the (Additional Information) – (Accounting Estimates)
section of the financial statement for the previous fiscal year.

-9-(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 28, 2021 (March 1, 2020 to May 31, 2020)
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

3,414

4,436

7,850

―

7,850―

47

47(47)

―

Total

3,414

4,4847,898(47)7,850

Segment income

152

193

346(120)225

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥120 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
to minus ¥123 million and elimination of inter-segment transactions of ¥127 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 byReporting Segment
There was no major impairment loss recorded during the period under review.
Ⅱ The first quarter of the fiscal year ending February 28, 2022 (March 1, 2021 to May 31, 2021)
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 BusinessTotal3,764

4,953

8,717

―

8,717―

39

39(39)

―

Total

3,764

4,992

8,757

(39)

8,717

Segment income

85349

435(114)321

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥114 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
to minus ¥125 million and elimination of inter-segment transactions of ¥135 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.
(Important Subsequent Events)
Not applicable- 10 -