CONSOLIDATED FINANCIAL REPORTFISCAL 2020（Japanese GAAP）(March 1, 2020 to February 28, 2021)
April 12, 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/
Annual General Meeting of Shareholders date (planned): May 27, 2021
Fiscal 2020 Securities Report filing date (planned): May 28, 2021
Dividend payment commencement date (planned): May 28, 2021
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: Yes (for analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated Performance for FY 2020 (March 1, 2020 to February 28, 2021)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Net Sales

Operating Income%

Millions of yen%

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Income%

Millions of yen%

Millions of yen

FY 2020

39,449(12.3)

2,767(30.4)

3,195(25.9)

1,622(34.5)FY 2019

44,970

(4.6)

3,975

(20.2)

4,312(36.6)

2,475

1.4(Note) Comprehensive income: FY 2020: ¥2,230 million (90.6%)
Net Income Per
Share

FY 2019: ¥1,170 million (-79.7%)

Net Income Per
Share (Diluted)

Yen

Ordinary Income
to Total Assets

ROE

Yen

%

%

Ordinary Income
to Operating
Revenues%

FY 2020
75.00
75.00
4.1
6.0
7.0
FY 2019112.18112.176.0
7.6
8.8(Reference) Operating income before the amortization of goodwill: FY 2020: ¥3,264 million FY 2019: ¥4,472 million
YONDOSHI HOLDINGS has positioned operating income before the amortization of goodwill as an importantmanagement indicator.

(2) Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Net Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 28, 2021

53,00039,54374.6

1,844.69

As of February 29, 2020

53,73739,58873.5

1,822.10(Reference) Shareholders’ equity: As of February 28, 2021: ¥39,513 million

As of February 29, 2020: ¥39,514 million(3) Consolidated Cash Flows
Operating Activities

Investing Activities

Financing Activities

Cash and Cash
Equivalents at the Endof the Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY 2020

6,633(2,169)(2,515)2,732

FY 20192,433

72(5,468)

785

― 1 ―

2.

Dividends
Cash Dividends per Share of Common Stock
End of 1Q End of 2Q End of 3Q

FY 2019
FY 2020
FY 2021 (planned)3.

End of 4Q

Cash
Dividends
Paid (Annual)

AnnualDividend
Payout Ratio(Consolidated)

Cash Dividends
to Net Assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

—
—
—

40.00
40.50
41.50

—
—
—

40.00
40.50
41.50

80.00
81.00
83.00

1,747
1,752

71.3
108.0
71.9

4.3
4.4

Forecast of Consolidated Results for FY 2021 (March 1, 2021 to February 28, 2022)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues

InterimFull Fiscal
year

Operating Income

Profit attributable toowners of parent

Ordinary Income

Net Income per
ShareMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

19,500

8.5

1,250

19.8

1,500

16.8

950

57.5

43.91

42,000

6.5

3,350

21.0

3,700

15.8

2,500

54.1

115.55(Reference) Forecast EPS before the amortization of goodwill for the full FY 2021 is ¥138.50.

Notes(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): No(2) 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(3) Number of shares issued and outstanding (common shares)
1. Number of shares issued and outstanding as of the end of the period (including treasury stock)
As of February 28, 2021: 24,331,356 shares
As of February 29, 2020: 24,331,356 shares
2. Number of treasury stock
As of February 28, 2021: 2,911,168 shares
As of February 29, 2020: 2,645,286 shares
3. Average number of shares for the year
FY2020: 21,635,806 shares
FY2019: 22,071,819 shares
Notes:
1. The number of recorded treasury stock includes 67,136 of the Company’ shares held by the Shares Grant Trust for
Officers as of the end of the third quarter of the fiscal year.
2. For additional information on the basic number of shares used to calculate consolidated net income per share, pleaserefer to “Per Share Information” on page 21.

― 2 ―(Reference) Overview of Non-Consolidated Performance

1. Non-Consolidated Performance for FY 2020 (March 1, 2020 to February 28, 2021)(1) Non-Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen

Ordinary Income%

Millions of yen%

Millions of yen

Profit attributable toowners of parent%

Millions of yen

FY 20202,431(68.3)

1,960(72.7)

2,049(71.5)

1,985(72.3)FY 20197,673(49.0)

7,170(50.6)

7,189(50.5)

7,166(50.2)FY 2020
FY 2019

Net Income Per
Share
Yen

Net Income Per
Share (Diluted)
Yen

91.77
324.6791.77
324.65(2) Non-Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Net Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 28, 2021

38,00926,35769.3

1,229.10

As of February 29, 2020

37,002

26,68671.9

1,227.15(Reference) Shareholders’ equity: As of February 28, 2021: ¥26,327 million

As of February 29, 2020: ¥26,612 million* 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 basedon 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 wellas cautionary notes on the use of operating results forecasts, please refer to the information from page 6.
2. YONDOSHI HOLDINGS plans to hold a briefing session for institutional investors and analysts on April
12, 2021 (Monday). Plans are also in place to post a copy of the presentation materials used on the day on
the Company’s website immediately after the briefing session.

― 3 ―Contents
1.

Overview of Business Results

5(1)Overview of Business Results for the Fiscal Year Ended February 29, 2020

5

(2)

Overview of Financial Condition as of February 29, 2020

5

(3)

Overview of Cash Flows for the Fiscal Year Ended February 29, 2020

6

(4)

Outlook6(5)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2019 and Fiscal 2020

7

2.

Basic Stance on Selection of Accounting Standards

7

3.

Consolidated Financial Statements and Major Notes

8(1)

Consolidated Balance Sheets

8(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

10

Consolidated Statements of Income

10

Consolidated Statements of Comprehensive Income

11

(3)

Consolidated Statements of Changes in Net Assets

12

(4)

Consolidated Statements of Cash Flows

14

(5)

Notes to Consolidated Financial Statements

16(Notes Regarding Going Concern Assumptions)16(Additional Information)

16(Segment Information)

17(Per Share Information)

21(Important Subsequent Events)

22

4.

Other

22

― 4 ―

1. Overview of Business Results(1) Overview of Business Results for the Fiscal Year Ended February 28, 2021
In fiscal 2020, the fiscal year ended February 28, 2021, conditions in the Japanese economy were extremely
severe, with a slump in business performance and a drop in personal consumption amid the restrictions placedon economic activity due to the COVID-19 emergency.
In the retail industry, the outlook remained clouded as a result of the impact from the government’s call for
people to remain at home, along with business suspensions and shortened operating hours at stores. In addition,
the worsening employment and income situation raised concerns of a further cooling off in consumer sentiment.
Under these circumstances, during fiscal 2020, the final year of the fifth medium-term management plan, the
YONDOSHI HOLDINGS Group continued to cultivate human resources, bolster product capabilities, and assessmarket trends, with the aim of becoming a century-old company and brand. Further, the Company 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, for the subject fiscal year under review, net sales amounted to ¥39,449 million (down 12.3%
YoY), with operating income of ¥2,767 million (down 30.4% YoY), ordinary income of ¥3,195 million (down
25.9% YoY), and profit attributable to owners of parent of ¥1,622 million (down 34.5% YoY). Operating income
before the amortization of goodwill, which has been designated an important management indicator, amounted
to ¥3,264 million (down 27.0% YoY).
Operating results by business segment were as follows.
Jewelry BusinessIn the F.D.C. Products Group, which is largely responsible for the YONDOSHI HOLDINGS Group’s Jewelry
Business, store sales were down compared with the previous fiscal year. In addition to the large-scale suspensionof store operations and shortening of operating hours from late March to the end of May, this year-on-year
decline was mainly due to the impact of the third wave of COVID-19 infections from mid-November. On a
positive note, sales through e-commerce channels increased 22.5% substantially outperforming the level
recorded for the previous fiscal year.
Accounting for each of the aforementioned, revenue and earnings declined year on year in the Jewelry
Business segment. In specific terms, net sales amounted to ¥20,641 million (down 23.5% YoY), with operating
income coming in at ¥2,139 million (down 35.6% YoY). Despite this downturn, the operating margin at 10.4%
held steady at double-digits.
Apparel Business
Retailer age Co., Ltd., which operates the everyday fashion brand PALETTE, recorded positive sales trends foritems related to everyday life, fulfilling its role as part of the social infrastructure supporting the lives of local
customers. This in turn led to record-high results for both net sales and operating income.
The AS’TY Group made efforts to maintain the supply chain by increasing the number of local staff atoverseas production sites. Operating income also surpassed plans on the back of efforts to reduce overhead
expenses.
As a result, net sales in the Apparel Business segment amounted to ¥18,807 million (up 4.6% YoY), with
operating income of ¥896 million (up 18.3% YoY).
(2) Overview of Financial Condition as of February 28, 2021
(Current Assets)
Current assets as of the end of the fiscal year under review stood at ¥15,616 million, down ¥1,359 million
compared with the end of the previous fiscal year. Major movements included a decrease in accounts receivableother of ¥2,366 million.
(Noncurrent Assets)
Noncurrent assets came to ¥37,383 million as of February 28, 2021, an increase of ¥622 million comparedwith the previous fiscal year-end. While the balance of goodwill declined ¥496 million, this increase was mainly
due to an increase in investment securities of ¥1,981 million.
(Current Liabilities)
Current liabilities stood at ¥6,802 million as of the end of the fiscal year under review, down ¥1,049 million― 5 ―compared with the end of the previous fiscal year. this decrease was mainly due to the drop in notes and accounts
payable-trade of ¥753 million.
(Noncurrent Liabilities)
Noncurrent liabilities were ¥6,654 million as of February 28, 2021, an increase of ¥357 million comparedwith the balance as of February 29, 2020. This increase was essentially due to the upswing in deferred tax
liabilities of ¥329 million.
(Net Assets)
Total net assets as of the end of the fiscal year under review came to ¥39,543 million, down ¥45 million
compared with the end of the previous fiscal year. While the Company recorded an increase of ¥721 million in
valuation difference on available-for-sale securities, this downturn was largely attributable to the increase intreasury stock of ¥463 million (decrease in net assets) and the drop in retained earnings of ¥130 million.
(3) Overview of Cash Flows for the Fiscal Year Ended February 28, 2021
Cash and cash equivalents as of the end of the fiscal year under review stood at ¥2,732 million, an increaseof ¥1,946 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥6,633 million, up ¥4,199 million compared with theprevious fiscal year. In the fiscal year under review, the major cash inflows were income before income taxes of¥2,905 million and income taxes refund of ¥2,709 million. The principal cash outflow was income taxes paid of¥1,334 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities came to ¥2,169 million, a turnaround of ¥2,242 million from the previous
fiscal year. The main cash outflows were attributable to the purchase of investment securities of ¥1,009 million
and the purchase of property, plant and equipment of ¥656 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥2,515 million, down ¥2,952 million compared with theprevious fiscal year. This largely reflected outflows for the purchase of treasury stock of ¥624 million and cash
dividends paid of ¥1,752 million.
(4) Outlook
As the impact of COVID-19 continues to take its toll, there are concerns that the worsening employment anddisposable income environment will trigger a further downturn in consumer sentiment. As a result, operating
conditions throughout the retail sector are expected to remain difficult.
Under these circumstances, every effort will be made to maximize the strengths of the Group to provide
products and services that exceed customer expectations while targeting continued growth against the backdrop
of a rapidly changing operating environment under the guidance of the Sixth Medium-Term Management Plan,
which began in fiscal 2021, the fiscal year ending February 28, 2022.
In addition to proactively undertaking investments aimed at enhancing brand value in the mainstay Jewelry
Business segment, the YONDOSHI HOLDINGS Group will work to establish a second pillar in the ApparelBusiness segment by expanding store openings and promoting existing store growth while building a robust
business portfolio.
Moreover, energies will be directed toward practicing CSR-based management to establish a highly trusted
corporate group, and further enhancing enterprise value by strengthening internal controls, providing shareholder
returns, and making medium to long-term investments linked to earnings growth.
As far as business results forecasts for the fiscal year ending February 28, 2022 are concerned, net sales areprojected to come in at ¥42,000 million, up 6.5% compared with the fiscal year under review. From a profit
perspective, operating income is expected to total ¥3,350 million, a year-on-year increase of 21.0%. Ordinary
income is forecast to reach ¥3,700 million, an improvement of 15.8% year on year. Profit attributable to ownersof parent is estimated to jump to ¥2,500 million, 54.1% higher than the fiscal year ended February 28, 2021.
Designated an important management indicator, operating income before the amortization of goodwill is
projected to come in at ¥3,846 million, up 17.8% year on year.

― 6 ―(5) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2020 and Fiscal 2021
The YONDOSHI HOLDINGS Group places the appropriation of profits to shareholders as a key management
priority. As a result, the Group maintains the basic policy of delivering stable and sustainable cash dividends.
At the same time, the Group adopts a flexible policy toward the purchase of treasury stock as a part ofcomprehensive efforts to increase the level of returns to shareholders. Working toward the goal of achieving anannual cash dividend of ¥100 per common share in the future, the YONDOSHI HOLDINGS Group placesconsiderable emphasis on increasing its dividend on a consecutive basis.
Based on this policy, YONDOSHI HOLDINGS plans to pay a fiscal year-end cash dividend of ¥40.50 per
common share. Together with the interim cash dividend paid of ¥40.50 per common share, the full fiscal year
cash dividend for the fiscal year under review will therefore come in a ¥81 per common share. This will enable
the Company to achieve its dividend payout ratio target of 30%. On this basis, the dividend payout ratio isprojected to come in at 108.0%. Meanwhile, the Company acquired 300,000 shares of treasury stock in fiscal
2020.
Turning to dividends for the fiscal year ending February 28, 2022, YONDOSHI HOLDINGS plans to pay aninterim and fiscal year-end cash dividend of ¥41.50 per common share for a full fiscal year cash dividend of ¥83
per common share, representing an eleventh consecutive fiscal year of cash dividend growth. As far as theCompany’s retained earnings are concerned, YONDOSHI HOLDINGS will work to secure the internal reserves
necessary to reinforce its management structure in response to an increasingly competitive environment,
cultivate new business, and pursue business development through a variety of vehicles including M&As.
Through these means, the Company will make every effort to improve the Group’s profitability while bolstering
its management and business platforms.
2. Basic Stance on Selection of Accounting Standards
The YONDOSHI HOLDINGS Group prepares its consolidated financial statements in accordance with Japanese
Generally Accepted Accounting Principles. With respect to International Financial Reporting Standards (IFRS),
the YONDOSHI HOLDINGS Group will respond adequately with consideration of the situation in Japan andoverseas.

― 7 ―3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

785
2,975
8,356
469
1,262
49
2,763
315
(2)

3,232
2,587
7,718
285
1,081
90
397
226
(3)

16,976

15,616

5,307
5,492
44
653

4,982
5,492
28
510

11,49811,013

3,227
119
1
93

2,730
75
1
124

3,441

2,932

16,507
244
3
1,735
71
440
582
1,811
23

18,489
250
2
1,618
－
436
487
1,764
27

452
(51)

417
(55)

21,82012,438ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Lease assets, net
Other, net
Total property, plant and equipment
Intangible assets:
Goodwill
Lease assets
Right of trademark
Other
Total intangible assets
Investments and other assets:
Investment securities
Guarantee deposits
Long-term loans receivable
Deferred tax assets
Deferred tax assets for land revaluation
Real estate for investment, net
Net defined benefit asset
Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and other
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets― 8 ―36,76037,38353,73753,000(Millions of yen)
End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

3,902
82
70
434
227
24
70
3,039

3,148
－
54
643
269
25
－
2,661

7,851

6,802

112
321
3,532
500
79
1,358
392

58
328
3,861
497
123
1,428
356

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Lease obligations
Long-term guarantee deposited
Deferred tax liabilities
Net defined benefit liability
Provision for directors' stock benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

6,297

6,654

14,14913,4572,486
7,223
32,108(5,751)

2,486
7,208
31,978(6,215)36,06635,458

Accumulated other 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

3,594
2
(161)
56
(43)

4,315
8
(233)
75
(110)

Total accumulated other comprehensive income

3,447

4,055

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

― 9 ―

74

29

39,58839,54353,73753,000(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal 2019
(March 1, 2019 to

Fiscal 2020
(March 1, 2020 toFebruary 29, 2020)

February 28, 2021)

Net sales
Cost of Sales

44,97019,19039,44918,155Gross profit

25,78021,294

Selling, general and administrative expenses

21,804

18,527

Operating income

3,975

2,767

Foreign exchange gains
Other

44
176
73
6
60

115
175
73
5
85

Total non-operating income

361

455

2
4
1
9
－
3
3

2
4
8
3
2
4
2

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

Non-operating expenses
Interest expenses
Depreciation on investments in real estateManagement cost on real estate for investment
Commission for purchase of treasury shares
Provision of allowance for doubtful accounts
Loss on cancellation of insurance policies
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on reversal of share acquisition rights
Subsidies for employment adjustment
Reversal of loss on liquidation of subsidiaries
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores
Loss on liquidation of brands
Loss on liquidation of brands
Loss on valuation of investment securities
Loss on liquidation of subsidiaries

24

27

4,312

3,195

99
－
－
－

22
52
463
28

99

567

217
40
－
71
174
48

232
27
405
121
63
6

Total extraordinary losses

551

857

Net income before income taxes

3,860

2,905

Income taxes ― current
Income taxes ― deferred

1,216
167

1,182
100

Total income taxes

1,384

1,282

Net income

2,475

1,622

Profit attributable to owners of parent

2,475

1,622

― 10 ―

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal 2019
(March 1, 2019 to

Fiscal 2020
(March 1, 2020 toFebruary 29, 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
Revaluation reserve for landRemeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent― 11 ―

February 28, 2021)
2,475

1,622

(1,251)
3
(12)
－
(45)

721
6
18
(71)
(67)

(1,305)
1,170

607
2,230

1,170

2,230

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2019 (March 1, 2019 to February 29, 2020)(Millions of yen unless otherwise stated)
Shareholders’ equity

Common stock

Capital surplus

2,486

18,057

Balance at the end of previous period

Retainedearnings
31,380Total
shareholders’equityTreasury stock(13,180)

38,743

Changes of items during the period
Dividends from surplus(1,747)(1,747)

Profit attributable to owners of parent

2,475

2,475

Purchase of treasury shares(3,597)(3,597)

18

173

191

(10,852)

10,852—

Disposal of treasury shares
Cancellation of treasury shares
Net changes in items excluding shareholders’equity during the period
Total
Balance at the end of current period—(10,833)

728

7,428

(2,677)

2,486

7,223

32,108(5,751)

36.,066

Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensiv
e income

Subscrip-tion
rights toshares

4,845

(1)

(161)

69

1

4,753

90

Total net
assets43,587(1,747)2,475(3,597)
191—(1,251)

3

—

(12)

(45)

(1,305)(16)(1,322)(1,251)
3,594

3

—

(12)

(45)

(1,305)(16)(3,999)

2

(161)

56

(43)

3,447

74

39,588― 12 ―

Fiscal 2020 (March 1, 2020 to February 28, 2021)(Millions of yen unless otherwise stated)
Shareholders’ equity

Common stock

Capital surplus

2,486

7,223

Balance at the end of previous period

Retainedearnings
32,108

Total
shareholders’equityTreasury stock(5,751)

36,066

Changes of items during the period
Dividends from surplus(1,752)

Profit attributable to owners of parent

1,622(1,752)
1,622

Purchase of treasury shares
Cancellation of treasury shares

(14)

(621)

(621)

157

142

Net changes in items excluding shareholders’equity during the period
Total
Balance at the end of current period

—

(14)

(130)

(463)

(608)

2,486

7,208

31,978(6,215)35,458

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

3,594

Deferred
gains orlosses onhedges2

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensiv
e income

Subscrip-tion
rights toshares

(161)

56

(43)

3,447

74

Total net
assets39,588(1,752)
1,622
(621)
142
721

6

(71)

18

(67)

607

(44)

563

721

6

(71)

18

(67)

607

(44)

(45)

4,315

8

(233)

75

(110)

4,055

29

39,543― 13 ―

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

Cash Flows from Operating Activities:
Net Income before income taxes

3,860

2,905

Depreciation and amortization

1,243

1,026

Impairment loss

217

232

Amortization of goodwill

496

496

Increase (decrease) in allowance for doubtful accounts

(48)

4

Increase (decrease) in provision for bonuses

13

41

Gain on reversal of share acquisition rights

―

(52)

Allowance for absence from work―

405

Subsidies for employment adjustment

―

(463)

Increase (decrease) in net defined benefit liability

(68)

(12)

Increase (decrease) in other provision

52

44

(220)

(291)

Interest expenses22Foreign exchange losses (gains)44

Loss (gain) on sales of investment securities

(99)

(22)

Decrease (increase) in notes and accounts receivable ― trade

(72)

384

Loss (gain) on valuation of investment securities

174

63

Decrease (increase) in inventories

37

1,001

Increase (decrease) in notes and accounts payable ― trade

319

(752)

Increase (decrease) in accrued consumption taxes

136

338

Increase (decrease) in advances received

(104)

(322)

Increase (decrease) in accounts payable - other

249

(341)

Interest and dividends income

Decrease (increase) in other assets

80

270

Increase (decrease) in other liabilities

(5)

(45)

6,268

4,919

Interest and dividends income received

221

283

Interest expenses paid

(2)

(2)

Subtotal

Subsidies for employment adjustment received―

463

Allowance for absence from work paid

―

(405)

Income taxes paid

(6,916)(1,334)

Income taxes refund

2,862

2,709

Net cash provided by (used in) operating activities

2,433

6,633

― 14 ―

(Millions of yen)
Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

Cash Flows from Investing Activities:
Payments into time deposits

―

(500)

Purchase of property, plant and equipment

(714)

(656)

Purchase of intangible assets

(71)

(64)

Purchase of investment securities(9)(1,009)Proceeds from sales of investment securities

145

88

Proceeds from redemption of investment securities

700―

Payments of long-term loans receivable

(0)

(0)

Collection of long-term loans receivable

2

1

Purchase of long-term prepaid expenses

(49)

(18)

Other payments

(189)

(164)

Other proceeds

260

154

Net cash provided by (used in) investing activities72(2,169)

(92)

(82)

(3,606)

(624)

68

14

(1,747)(1,752)

(89)

(69)

(5,468)(2,515)(2)(1)

Net increase (decrease) in cash and cash equivalents(2,963)

1,946

Cash and cash equivalents at beginning of period

3,749

785

785

2,732

Cash Flows from Financing Activities:
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period― 15 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
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. During the subject consolidated fiscal year, however,
the Trust completed the sale of shares in the Company held by The Nomura Trust and Banking Co., Ltd. With
the expiration of the trust period on July 2, 2020, this transaction came to a conclusion.
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 eachmonth. 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 to the trust(excluding ancillary expenses). The book value and number of shares of such treasury stock is not applicabledue to the completion of sale of all remaining shares in the Trust during the subject consolidated fiscal year.
iii. Book value of debt recorded through application of the gross method
Not applicable due to the completion of repayment during the subject consolidated fiscal year.
(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 and supervisory 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 theeligible 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 their book value
in the Trust (excluding the amount of ancillary expenses). The book value and number of shares of such treasury
stock was ¥114 million, for 45,353 shares at the end of the previous consolidated fiscal year, and ¥144 million,
for 67,136 shares at the end of the subject consolidated fiscal year.
(Accounting Estimates)
Amid heightened awareness of preventing the spread of COVID-19, the Company expects the current inclination
among people to refrain from going out in public to also continue into the future, and that this will affect demand
to a certain degree.
During the subject fiscal year, the Company had assumed that demand would gradually recover over thecourse of the subject consolidated fiscal year. However, considering the current situation for the COVID-19― 16 ―

crisis, the Company is changing its assumption to “conditions will gradually improve, but the effects of thecurrent situation will persist for a certain period, even after the subject fiscal year,” and has made accounting
estimates for impairment of fixed assets.
Of note, because the timing of a return to a normal state from the COVID-19 crisis remains unclear, factors
such as the future spread of the infection, and conditions surrounding a return to a normal situation, could havea considerable impact on consolidated results.

(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using the segregatedfinancial information available within each segment to determine the allocation of management
resources and evaluate business results.
Based on the major products handled, the YONDOSHI HOLDINGS Group has identified theJewelry Business and the Apparel Business as its two reporting segments.
(1) Jewelry Business
F.D.C. Products Inc. and its subsidiary companies engage in the comprehensive development ofbrand businesses. This includes the design, manufacture and sale of various products focusing mainly
on jewelry. The F.D.C. Products Group’s principal brands include 4°C, Canal4°C, andEAUDOUCE4°C.

(2) Apparel Business
AS’TY Inc. and its subsidiary companies engage in apparel business development activities.
Responsible for the manufacturing and apparel functions that draw on its design and marketing
capabilities, the AS’TY Group maintains an overseas production network in such countries as China,
Bangladesh and Vietnam while marketing products mainly through major apparel outlets, specialty
stores and general merchandise stores. age Co., Ltd. is active in the retail business focusing mainly on
women’s clothes, fashion accessories and practical clothing. The company’s is largely undertaken inWestern Japan.
2. Calculation Methods for Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
The accounting treatment methods for reporting segments are generally the same as those adopted for
preparing consolidated financial statements. Profits for reporting segments are operating income amounts.
Intrasegment sales and transfers are based on current market prices.

― 17 ―

3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)(Millions of yen)
Reporting Segments

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

26,987

17,98344,970―44,970

0

553

553

(553)

―

26,9873,319
26,282

18,536758
25,55045,542
4,077
51,832

(553)
(102)
1,904

44,9703,975
53,737

890

330

1,220

22

1,243

645

202

848

32

880

Notes:
1.
(1) The adjustment amount of minus ¥102 million for segment income mainly includes amortization of goodwill totaling
minus ¥496 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥537 million and eliminations of inter-segment transactions of ¥931 million.
(2) The adjustment amount of ¥1,904 million for segment assets is mainly comprised of an inter-segment offset amount
totaling minus ¥10,830 million, corporate assets of ¥9,507 million and the balance of unamortized goodwill of ¥3,227 million
that are not allocated to each reporting segment. Meanwhile, corporate assets are primarily made up of surplus operating funds(cash and deposits) that are not attributable to individual reporting segments.
(3) The adjustment amount of ¥22 million for depreciation and amortization relates to corporate assets that are not attributable
to individual reporting segments.
(4) The adjustment amount of tangible and intangible asset increase of ¥32 million relates to corporate assets that are not
attributable to individual reporting segments.
2.
Segment income matches operating income recorded on the consolidated statements of income.

Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)(Millions of yen)
Reporting Segments

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

20,64118,80739,449―39,449

0

221

221

(221)

―

20,642
2,139
24,86719,029896
27,041

39,671
3,036
51,909

(221)
(268)
1,091

39,4492,767
53,000

659

340

999

26

1,026

365

344

709

12

722

Notes:
1. (1) The adjustment amount of minus ¥268 million for segment income mainly includes amortization of goodwill totaling
minus ¥496 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥502 million and eliminations of inter-segment transactions of ¥730 million.
(2) The adjustment amount of ¥1,091 million for segment assets is mainly comprised of an inter-segment offset amount
totaling minus ¥12,159 million, corporate assets of ¥10,519 million and the balance of unamortized goodwill of ¥2,730 million
that are not allocated to each reporting segment. Meanwhile, corporate assets are primarily made up of surplus operating funds(cash and deposits) that are not attributable to individual reporting segments.
(3) The adjustment amount of ¥26 million for depreciation and amortization relates to corporate assets that are not attributable
to individual reporting segments.
(4) The adjustment amount of tangible and intangible asset increase of ¥12 million relates to corporate assets that are not― 18 ―

2.

attributable to individual reporting segments.
Segment income matches operating income recorded on the consolidated statements of income.

(Related Information)
Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Information
i. Net sales
As the total of net sales to outside customers based in Japan of all business segments represented over 90% of theCompany’s total net sales in the consolidated statements of income, geographical information has been omitted.
ii. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of theCompany’s property, plant and equipment in the consolidated balance sheets, geographical information has been
omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or more of
the total operating revenues posted in the consolidated statement of income.

Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Information
i. Net sales
As the total of net sales to outside customers based in Japan of all business segments represented over 90% of theCompany’s total net sales in the consolidated statements of income, geographical information has been omitted.
ii. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of theCompany’s property, plant and equipment in the consolidated balance sheets, geographical information has been
omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or more of
the total operating revenues posted in the consolidated statement of income.

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

191

Total
25

― 19 ―

Adjustment
amount

217

―

Total

217

Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

221

Adjustment
amount

Total
11

232

―

Total

232

(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥496 million and ¥3,227 million, respectively. The amounts of goodwill amortized and balanceof unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥496 million and ¥2,730 million, respectively. The amounts of goodwill amortized and balanceof unamortized goodwill related to goodwill that arose at the time of stock exchange.

(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2019, the Fiscal Year Ended February 29, 2020 (March 1, 2019 to February 29, 2020)
Not applicable.
Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
Not applicable.

― 20 ―

(Per Share Information)(Yen)
Fiscal 2019
(March 1, 2019 to February 29, 2020)

1.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

Fiscal 2020
(March 1, 2020 to February 28, 2021)

1,822.10
112.18112.171.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

1,844.69
75.00
75.00

Notes: 1. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

Total earnings per share
Profit attributable to owners of parent
Amounts not applicable to ordinary shareholders
Profit attributable to owners of parent applicable to common
stock
Average number of common shares (Shares)

Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

2,475
—

1,622
—

2,475

1,622

22,071,819

21,635,806—
1,312(1,312)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:80,700 shares——(—)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:80,700 shares

New share subscription rights
issued on November 22, 2018
11th issuance of new sharesubscription rights
Common stock:
34,500 shares

New share subscription rights
issued on June 8, 2016
9th issuance of new sharesubscription rights
Common stock:
6,500 shares

New share subscription rights
issued on November 22, 2018
12th issuance of new sharesubscription rights
Common stock:
28,200 shares

New share subscription rights
issued on June 8, 2016
10th issuance of new sharesubscription rights
Common stock:
19,300 shares

Net income per share adjusted for diluted shares
Adjustment to profit attributable to owners of parent per share
Increased number of common shares (Shares)(Subscription rights to shares)

Description of the diluted shares not included in the calculationof net income per share adjusted for diluted shares due to their
non-dilutive effect from the previous fiscal year

New share subscription rights
issued on November 22, 2018
11th issuance of new sharesubscription rights
Common stock:
34,500 shares
New share subscription rights
issued on November 22, 2018
12th issuance of new sharesubscription rights
Common stock:
28,200 shares
New share subscription rights
issued on July 8, 2020
13th issuance of new sharesubscription rights
Common stock:
21,000 shares
New share subscription rights
issued on July 8, 2020
14th issuance of new sharesubscription rights
Common stock:
31,500 shares― 21 ―

2. The basis for calculating net assets per share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2019
(March 1, 2019 toFebruary 29, 2020)

Total net asset recorded on consolidated balance sheets
Deduction amount of total net asset recorded on consolidatedbalance sheets
Subscription rights to shares
Net assets applicable to common stock
Number of common stock utilized for the calculation of net assets
per share (Shares)

Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

39,58839,543

74

29

(74)
39,514(29)
39,513

21,686,070

21,420,188

3. Company stock remaining in the YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust(hereinafter referred to as “the Trust”) and the Shares Grant Trust for Officers recorded as Treasury Stock in the
Company’s Shareholders’ Equity is included in the number of treasury stock to be deducted when computing the
average number of shares for the period for earnings per share calculation purposes as well as the number of treasury
stock to be deducted from the total number of shares issued and outstanding as of the end of the period for net assets
per share calculation purposes.
The number of treasury stock to be deducted when computing the average number of shares for the period for earnings
per share calculation purposes was 89,427 shares for fiscal 2019 and 62,992 shares for fiscal 2020. The number oftreasury stock to be deducted from the total number of shares issued and outstanding as of the end of the period for net
assets per share calculation purposes was 71,353 shares for fiscal 2019 and 67,136 shares for fiscal 2020.

(Important Subsequent Events)
Not applicable
Other(1) Changes in Management (Planned effective date: May 27, 2021)
i. Change in Representative・ Candidate for new appointment as representative director
President and Representative Director, COO Hidetoshi Masuda(Current Position: Managing Executive Officer, Head of President’s Office)4.

・ Officer scheduled to retire
President and Representative Director, COO
ii.

Tohru Hirota

Other Changes
・ Candidate for new appointment as a Director and Audit/Supervisory Committee Member
Masahiro Dakeshita (Current Position: Executive Officer, Head of Audit Office)・ Scheduled retirement of a Director and Audit/Supervisory Committee Member
Masahiko Iwamori
Please refer to the press release “Notice of Planned Changes in Representative Director and Personnel”
issued on April 12, 2021 for details.

― 22 ―