CONSOLIDATED FINANCIAL REPORTFISCAL 2022（Japanese GAAP）(March 1, 2022 to February 28, 2023)
April 14, 2023
YONDOSHI HOLDINGS INC. is listed on the Prime Market of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Hidetoshi Masuda, President and Representative Director
Masahiko Nishimura, Managing Director, Managing Executive Officer responsible for Finan
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Annual General Meeting of Shareholders date (planned): May 25, 2023
Fiscal 2022 Securities Report filing date (planned): May 26, 2023
Dividend payment commencement date (planned): May 26, 2023
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 2022 (March 1, 2022 to February 28, 2023)(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 2022

39,508

3.6

1,979

10.7

2,342

2.1

1,149

(22.9)FY 2021

38,123

(3.4)

1,788

(35.4)

2,293(28.2)

1,490

(8.1)

(Note) Comprehensive income: FY 2022: ¥(2,928) million (－%)
Net Income Per
Share

FY 2021: ¥5,112 million (129.2%)

Net Income Per
Share (Diluted)

Yen

Ordinary Income
to Total Assets

ROE

Yen

%

%

Ordinary Income
to Operating
Revenues%

FY 2022
53.61
—
2.8
4.4
5.0
FY 2021
69.56
—
3.6
4.2
4.7
(Reference) Operating income before the amortization of goodwill: FY 2022: ¥2,476 million
FY 2021: ¥2,284 million
YONDOSHI HOLDINGS has positioned operating income before the amortization of goodwill as an importantmanagement indicator.
Note: The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) from the
beginning of the subject fiscal year. Figures for the fiscal year ended February 28, 2023, are after application of thisaccounting standard.

(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, 2023

50,211

38,21476.0

1,780.71

As of February 28, 2022

56,88442,91775.4

2,001.22(Reference) Shareholders’ equity: As of February 28, 2023: ¥38,183 million
As of February 28, 2022: ¥42,893 million
Note: The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) fromthe beginning of the subject fiscal year. Figures for the fiscal year ended February 28, 2023, are after application of thisaccounting standard.

― 1 ―(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Cash and Cash
Equivalents at the Endof the Period
Millions of yen

FY 20223,103(2,371)(1,834)

1,799

FY 2021

1,871

106

(1,816)2,900

Operating Activities

2.

Investing Activities

Financing Activities

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

FY 2021
FY 2022
FY 2023(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

%

%

—
—
—

41.50
41.50
41.50

—
—
—

41.50
41.50
41.50

83.00
83.00
83.00

1,784
1,787

119.3
154.8
136.9

4.3
4.4

Forecast of Consolidated Results for FY 2023 (March 1, 2023 to February 29, 2024)(% 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

19,000

2.6

800

24.0

1,000

21.6

550

7.1

25.65

40,000

1.2

2,100

6.1

2,500

6.7

1,300

13.1

60.63

(Reference) Forecast EPS before the amortization of goodwill for the full FY 2023 is ¥83.79.

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: Yes
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, 2023: 24,331,356 shares
As of February 28, 2022: 24,331,356 shares
2. Number of treasury stock
As of February 28, 2023: 2,888,198 shares
As of February 28, 2022: 2,897,922 shares
3. Average number of shares for the year
FY2022: 21,441,448 shares
FY2021: 21,429,623 shares
Notes:
1. The number of recorded treasury stock includes 97,170 of the Company’ shares held by the Shares Grant Trust for
Officers as of the end of the subject consolidated 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 22.

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

1. Non-Consolidated Performance for FY 2022 (March 1, 2022 to February 28, 2023)(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 20221,519(36.1)

1,069(45.4)

1,139(43.2)

1,047(45.6)FY 2021

2,376

(2.3)

1,958

(0.1)

2,005

(2.1)

1,924

(3.1)

FY 2022
FY 2021Net Income Per
Share
Yen

Net Income Per
Share (Diluted)
Yen

48.86
89.80

—
—

(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, 2023

38,36825,70866.9

1,197.50

As of February 28, 2022

38,00026,51169.7

1,235.77(Reference) Shareholders’ equity: As of February 28, 2023: ¥25,678 million

As of February 28, 2022: ¥26,486 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
based on management’s assumptions and beliefs that are determined to be reasonable in light ofcurrently available information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety
of factors actual results may differ materially from forecasts. For the assumptions that underpin
operating results forecasts as well as cautionary notes on the use of operating results forecasts, pleaserefer to the information from page 6.
2.

The Company plans to hold a financial results briefing on April 14, 2023 (Friday) for institutional
investors and analysts. Presentation materials used that day will be posted to the Company’s website
promptly after the briefing.

― 3 ―Contents
1.

Overview of Business Results

5(1)Overview of Business Results for the Fiscal Year Ended February 28, 2022

5

(2)

Overview of Financial Condition as of February 28, 2022

5

(3)

Overview of Cash Flows for the Fiscal Year Ended February 28, 2022

6

(4)

Outlook6(5)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2021 and Fiscal 2022

6

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(Changes in Accounting Policies)

16(Additional Information)

17(Segment Information)

18(Matters Related to Revenue Recognition)

21(Per Share Information)

22(Important Subsequent Events)

23

― 4 ―

1. Overview of Business Results(1) Overview of Business Results for the Fiscal Year Ended February 28, 2023
In fiscal 2022, the fiscal year ended February 28, 2023, the Japanese economy showed signs of a modest recovery
as economic activity returned to normal with the easing of restrictions implemented in response to the COVID19 pandemic. Meanwhile, sharp fluctuations in foreign currency exchange rates and the surge in resource andenergy prices had a significant impact on corporate activity.
In the retail sector, despite indications of a partial recovery in consumption, the outlook remained uncertain
owing to the growing number of people cutting back on their spending as a result of successive price hikes.
Under these circumstances, the YONDOSHI HOLDINGS Group, in response to changes in the businessenvironment, leveraged the strengths of the corporate group to the fullest extent in order to provide products andservices that exceed customer expectations, with the aim of further growth. In addition, the Company practiced
sustainable 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 ¥39,508 million (up 3.6% YoY),
with operating income of ¥1,979 million (up 10.7% YoY), ordinary income of ¥2,342 million (up 2.1% YoY),
and profit attributable to owners of parent of ¥1,149 million (down 22.9% YoY). Operating income before theamortization of goodwill, which the Company considers to be an important management indicator, amounted to¥2,476 million (up 8.4% YoY).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group, which is largely responsible for the YONDOSHI HOLDINGS Group’s Jewelry
Business, reported firm trends in fashion jewelry on the back of successful measures to expand its female
customer base and cultivate new customers. Sales in the e-commerce business also expanded steadily following
the renewal of its website. Meanwhile, the F.D.C. Products Group undertook steps to increase efficiency throughthe integration of stores while also making large-scale investments in urban stores in the bridal jewelry business,
which struggled under difficult conditions.
As a result, net sales in the Jewelry Business amounted to ¥18,587 million (up 0.5% YoY) with operating
income of ¥1,356 million (up 13.3% YoY).
Apparel Business
Retailer age Co., Ltd., which operates the everyday fashion brand PALETTE, reported a year-on-year increasein existing store sales of 2.1%. This represents a fourth consecutive fiscal year of growth. In addition, efforts to
expand the Group’s scale in the Apparel Business progressed steadily with the opening of 10 new stores,
including four stores in the Kanto region for the first time.
The AS’TY Group recorded an expansion in sales. Despite confronting a harsh operating environment
impacted in part by the weak yen and higher materials costs, this was mainly due to successful efforts to takeadvantage of the foreign production infrastructure to strengthen business with mainstay trading partners.
As a result, net sales in the Apparel Business segment amounted to ¥20,921 million (up 6.6% YoY), with
operating income of ¥942 million (up 6.0% YoY).
(2) Overview of Financial Condition as of February 28, 2023
(Current Assets)
Current assets as of the end of the fiscal year under review stood at ¥13,699 million, down ¥1,200 million
compared with the end of the previous fiscal year. Major movements included a decrease in cash and depositsof ¥1,096 million.
(Noncurrent Assets)
Noncurrent assets came to ¥36,512 million as of February 28, 2023, a decrease of ¥5,472 million compared withthe previous fiscal year-end. This decrease was largely due to downturns in investment securities of ¥4,629
million and goodwill of ¥496 million.
(Current Liabilities)
Current liabilities stood at ¥5,872 million as of the end of the fiscal year under review, up ¥425 million comparedwith the end of the previous year. This upswing largely reflected the increase in asset retirement obligations of― 5 ―¥208 million.
(Noncurrent Liabilities)
Noncurrent liabilities amounted to ¥6,124 million as of February 28, 2023, a decrease of ¥2,395 million
compared with the balance as of February 28, 2022. This decrease was essentially due to the year-on-year
downturn in deferred tax liabilities of ¥2,194 million.
(Net Assets)
Total net assets stood at ¥38,214 million as of the fiscal year-end under review, down ¥4,703 million comparedwith the end the previous fiscal year. This downturn was mainly due to the decrease in valuation difference on
available-for-sale securities of ¥3,966 million.
(3) Overview of Cash Flows for the Fiscal Year Ended February 28, 2023
Cash and cash equivalents as of the end of the fiscal year under review stood at ¥1,799 million, a decrease of¥1,100 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥3,103 million, up ¥1,231 million compared with theprevious fiscal year. In the fiscal year under review, the major cash inflows were net income before income taxesof ¥2,000 million and depreciation and amortization, a non-funded item, of ¥770 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities came to ¥2,371 million, a negative turnaround of ¥2,477 million comparedwith the net cash provided by investing activities in the previous fiscal year. The principal cash outflow was dueto the purchase of investment securities of ¥2,007 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities totaled ¥1,834 million, an increase of ¥18 million compared with theprevious fiscal year. The main cash outflow was cash dividends paid of ¥1,786 million.
(4) Outlook
As far as the retail sector is concerned, there are expectations of a recovery in consumption, including inbounddemand, following the removal of restrictions on people’s movements implemented in response to the COVID19 pandemic. Despite these expectations, the outlook remains uncertain owing to concerns surrounding a variety
of factors including financial instability, geopolitical risks, and increases in consumer prices.
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 further growth against the backdrop ofa changing operating environment.
In addition to further enhancing brand value and reforming the earnings structure and platform in themainstay Jewelry Business segment, the YONDOSHI HOLDINGS Group will build a robust business portfolio
by expanding store openings and promoting existing store growth in the Apparel Business segment.
Moreover, energies will be directed toward practicing sustainable 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, 2024, are concerned, net sales areprojected to come in at ¥40,000 million, up 1.2% compared with the fiscal year under review. From a profit
perspective, operating income is expected to total ¥2,100 million, a year-on-year increase of 6.1%. Ordinary
income is forecast to reach ¥2,500 million, an improvement of 6.7% year on year. Profit attributable to ownersof parent is estimated to jump to ¥1,300 million, 13.1% higher than the fiscal year ended February 28, 2023.
Designated an important management indicator, operating income before the amortization of goodwill is
projected to come in at ¥2,596 million, up 4.9% year on year.
(5) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2022 and Fiscal 2023
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 of― 6 ―comprehensive efforts to increase the level of returns to shareholders.
The Group has also established a target DOE, a core indicator for measuring shareholder returns, of at least
4%, and aims to achieve an annual dividend of ¥100 per common share in the future.
Based on this policy, YONDOSHI HOLDINGS plans to pay a fiscal year-end cash dividend of ¥41.50 per
common share. Together with the interim cash dividend paid of ¥41.50 per common share, the full fiscal year
cash dividend for the fiscal year under review will therefore come in at ¥83 per common share. This will enable
the Company to achieve its DOE target of 4.4%.
Turning to dividends for the fiscal year ending February 28, 2024, 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.
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 28, 2022
(As of February 28, 2022)

End of the Fiscal Year Ended
February 28, 2023
(As of February 28, 2023)

2,900
2,445
7,713
293
736
92
488
232
(4)

1,804
2,876
7,647
70
685
87
267
265
(5)

14,89913,699

4,630
5,839
18
411

4,265
5,839
34
399

10,89910,538

2,234
35
1
252

1,737
2
0
366

2,523

2,107

24,037
244
1
1,673
492
1,796
24

19,408
245
1
1,735
349
1,810
21

342
(51)

342
(47)

28,562

23,866

41,98536,512

56,88450,211ASSETS
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
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 ―(Millions of yen)
End of the Fiscal Year Ended
February 28, 2022
(As of February 28, 2022)

End of the Fiscal Year Ended
February 28, 2023
(As of February 28, 2023)

2,181
738
46
353
196
10
－
1,920

2,089
692
15
531
240
33
208
2,061

5,447

5,872

12
312
5,791
514
146
1,400
341

24
453
3,596
501
184
1,130
234

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Electronically recorded obligations – operating
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

8,519

6,124

13,966

11,9962,486
7,196
31,707(6,175)

2,486
7,189
31,056(6,148)35,21534,584

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

8,018
8
(233)
1
(117)

4,052
0
(233)
2
(222)

Total accumulated other comprehensive income

7,677

3,599

24

30

42,917

38,21456,88450,211

Subscription rights to shares
Total net assets
Total liabilities and net assets― 9 ―(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal 2021
(March 1, 2021 to

Fiscal 2022
(March 1, 2022 toFebruary 28, 2022)

February 28, 2023)

Net sales
Cost of Sales

38,12318,45039,50819,781Gross profit

19,672

19,727

Selling, general and administrative expenses

17,884

17,748Operating income

1,788

1,979

79
188
32
0
162
65

102
207
13
－
1
40

529

366

0
3
2
10
5

1
－
1
－
1

Non-operating income
Interest income
Dividends received
Foreign exchange gains
Reversal of allowance for doubtful accounts
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on disposal of inventories
Loss on cancellation of insurance policies
Depreciation of inactive non-current assets
Other
Total non-operating expenses

23

3

2,293

2,342

106
13
64
60

293
－
－
－

Total extraordinary income

245

293

Extraordinary loss
Impairment loss
Loss on closing of stores
Building demolition expenses
Allowance for absence from work
Loss on liquidation of business
Loss on liquidation of subsidiaries

243
－
－
61
－
－

542
26
9
－
23
33

Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Subsidies for employment adjustment
Reversal of foreign currency translation adjustment

Total extraordinary losses

304

634

Net income before income taxes

2,234

2,000

Income taxes ― current
Income taxes ― deferred

825
(82)

946
(95)

Total income taxes

743

851

Net income

1,490

1,149

Profit attributable to owners of parent

1,490

1,149

― 10 ―

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal 2021
(March 1, 2021 to

Fiscal 2022
(March 1, 2022 toFebruary 28, 2022)
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― 11 ―

February 28, 2023)
1,490

1,149

3,702
(0)
(73)
(6)

(3,966)
(7)
1
(105)

3,622
5,112

(4,078)(2,928)5,112(2,928)

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2021 (March 1, 2021 to February 28, 2022)(Millions of yen unless otherwise stated)
Shareholders’ equity
Retainedearnings

Capital surplus

2,486

7,208

31,978

2,486

7,208

31,978

Balance at the end of previous period
Cumulative effects of changes in accounting
policies
Restated balance

Totalshareholders’equityTreasury stock

Common stock(6,215)35,458(6,215)35,458——Changes of items during the period
Dividends from surplus(1,761)

Profit attributable to owners of parent

1,490(1,761)
1,490

Purchase of treasury shares
Disposal of treasury shares

(11)

(0)

(0)

40

28

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

—

(11)

(271)

(40)

(242)

2,486

7,196

31,707(6,175)35,215

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at the end of
previous period
Cumulative effects ofchanges in accounting
policies
Restated balance
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

4,315

Deferred
gains orlosses onhedges

Revaluation
reserve forland
8Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

75

(110)

(233)

Total
accumulated
othercomprehensive

Subscrip-tion
rights tosharesTotal net
assetsincome4,055

29

39,543
—

4,315

8

(233)

75

(110)

4,055

29

39,543(1,761)
1,490
(0)
28
3,702

(0)

—

(73)

(6)

3,622

(4)

3,617

3,702

(0)

—

(73)

(6)

3,622

(4)

3,374

8,018

8

(233)

1

(117)

7,677

24

42,917― 12 ―

Fiscal 2022 (March 1, 2022 to February 28, 2023)(Millions of yen unless otherwise stated)
Shareholders’ equity

Common stock

Capital surplus

2,486

7,196

Balance at the end of previous period

Retainedearnings
31,707

Cumulative effects of changes in accounting
policies

Total
shareholders’equityTreasury stock(6,175)35,215(13)(13)

Dividends from surplus(1,786)(1,786)

Profit attributable to owners of parent

1,149

Restated balance
Changes of items during the period

1,149

Purchase of treasury shares
Disposal of treasury shares

(7)

(42)

(42)

68

61

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

—

(7)

(637)

26

(617)

2,486

7,189

31,056(6,148)35,584

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at the end of
previous period
Cumulative effects ofchanges in accounting
policies
Restated balance
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

8,018

Deferred
gains orlosses onhedges

Revaluation
reserve forland
8Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

1

(117)

(233)

Total
accumulated
othercomprehensive

Subscrip-tion
rights tosharesTotal net
assetsincome7,677

24

42,917(13)(1,786)
1,149
(42)
61
(3,966)

(7)

—

1

(105)

(4,078)5(4,072)(3,966)

(7)

—

1

(105)

(4,078)

5(4,690)

4,052

0

(233)

2

(222)

3,599

30

38,214― 13 ―

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2021
(March 1, 2021 to
February 28, 2022)

Fiscal 2022
(March 1, 2022 toFebruary 28, 2023)

Cash Flows from Operating Activities:
Net Income before income taxes

2,234

2,000

Depreciation and amortization

831

770

Impairment loss

243

542

Amortization of goodwill

496

496

Increase (decrease) in allowance for doubtful accounts

(4)

(2)

Increase (decrease) in provision for bonuses

(72)

43

Allowance for absence from work

61―

Loss on liquidation of business―

23

Subsidies for employment adjustment

(64)

―

Subsidy income

(162)

(1)

Increase (decrease) in net defined benefit liability

2

(32)

Increase (decrease) in other provision

8

60

(268)

(310)

0

1

Interest and dividends income
Interest expenses
Foreign exchange losses (gains)

(15)

0

Loss (gain) on sales of property, plant and equipment

(13)

―

Loss (gain) on sales of investment securities

(106)

(293)

3

―

Loss on disposal of inventories
Reversal of foreign currency translation adjustment

(60)

―

Decrease (increase) in notes and accounts receivable ― trade

145

(427)

Decrease (increase) in inventories

339

340

Increase (decrease) in notes and accounts payable ― trade

(228)

(137)

Increase (decrease) in accrued consumption taxes

(508)

100

Increase (decrease) in advances received

(81)

(101)

Increase (decrease) in accounts payable - other2

70

Decrease (increase) in other assets

54

(74)

Increase (decrease) in other liabilities

(190)

157

Subtotal

2,647

3,226

Interest and dividends income received

275

310

Interest expenses paid

(0)

(1)

Subsidies for employment adjustment received

64―

Proceeds from subsidy income

162

1

Allowance for absence from work paid

(61)

―

Income taxes paid

(1,602)(782)

Income taxes refund

386

347

1,871

3,103

Net cash provided by (used in) operating activities― 14 ―

(Millions of yen)
Fiscal 2021
(March 1, 2021 to
February 28, 2022)

Fiscal 2022
(March 1, 2022 toFebruary 28, 2023)

Cash Flows from Investing Activities:
Proceeds from withdrawal of time deposits

500―

Purchase of property, plant and equipment

(436)

(842)

27

2

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities

(162)

(176)

(2,532)(2,007)

249

864

2,500

―

Collection of long-term loans receivable

00Purchase of long-term prepaid expenses

(20)

(18)

Other payments

(121)

(311)

Other proceeds

101

118

Net cash provided by (used in) investing activities

106(2,371)

Purchase of treasury stock

(0)

(0)

Proceeds from sales of treasury stock0―(1,761)(1,786)

(54)

(47)

(1,816)(1,834)

5

1

Net increase (decrease) in cash and cash equivalents

167(1,100)Cash and cash equivalents at beginning of period

2,732

2,900

Cash and cash equivalents at end of period

2,900

1,799

Cash Flows from Financing Activities:

Cash dividends paid
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents― 15 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
Not applicable.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition)
The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) from the beginning of the subject consolidated fiscal year. Under this accounting standard,
revenue is recognized when control over promised goods or services is transferred to customers, in an
amount that the Company expects to receive in exchange for those goods or services. Of note, the Company
also applies alternative treatment as stipulated in Paragraph 98 of “Implementation Guidance on AccountingStandard for Revenue Recognition,” under which revenue from sales in Japan of merchandise or products
is recognized at the time of shipment, when the period between shipment and the time at which control overthe subject merchandise or products is transferred to customers is a normal period.
The main changes resulting from the application Accounting Standard for Revenue Recognition are as
follows.
(1) Revenue recognition pertaining to fee payment transactions
Previously, articles supplied for a fee were derecognized as inventories. However, for fee paymenttransactions determined to be subject to a repurchase agreement, articles supplied for a fee that remain
with the party that received them continue to be recognized as inventories.
(2) Revenue recognition pertaining to agent transactions
Previously, for certain transactions, the gross amount of consideration received from customers wasrecognized as revenue. However, for transactions in which the role of the Group in providing goods andservices to customers corresponds to that of an agent, the net amount of the sum received from customers,
excluding the amount paid to the supplier, is recognized as revenue.
(3) Revenue recognition pertaining to consideration paid to customers
Previously, logistics center fees and other types of consideration paid to customers were treated as selling,
general and administrative expenses, but this has been changed to a method of reduction from thetransaction price. Also, of the expenses treated as selling, general and administrative expenses, thetransport cost for articles necessary to fulfill performance obligations has been changed to a method ofrecording as cost of sales.
(4) Sales with right of return
Sales with right of return have been changed to a method of recognizing the anticipated revenue from thereturned article, less the corresponding amount of cost of sales, as revenue and cost of sales. The
equivalent value of the article anticipated for return is presented in the “Other” item of current assets asrepayment liability, while assets recognized as the rights to recover articles from customers at the time ofsettlement of the repayment liability, are presented in the “Other” item of current assets as returned goods
assets.
In adopting the Accounting Standard for Revenue Recognition, the Company followed the transitional
treatment stipulated in the provision of Paragraph 84 of the Accounting Standard for Revenue Recognition.
The cumulative effect of retroactively applying the new accounting policy to periods before the beginningof the subject consolidated fiscal year was added to or deducted from retained earnings at the beginningof the subject consolidated fiscal year, and the new accounting policy was applied with effect from theopening balance of retained earnings.
As a result, net sales in the subject consolidated fiscal year under review decreased by ¥224 million,
cost of sales increased by ¥109 million, and selling, general and administrative expenses decreased by¥332 million. However, the impact on operating income, ordinary income, and profit before income taxes
was negligible. The balance of retained earnings at the beginning of the subject fiscal year decreased by¥13 million.
(Adoption of Accounting Standard for Fair Value Measurement)
Effective from the beginning of the subject consolidated fiscal year, the Company adopted the― 16 ―

“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter,“Accounting Standard for Fair Value Measurement”), etc. Under the transitional treatment stipulated in
Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company
decided to adopt the new accounting policy stipulated by the Accounting Standard for Fair Value
Measurement, etc. for the future. There is no impact on the quarterly consolidated financial statements.
In addition, in the “Notes (Notes Regarding Financial Instruments),” the Group has decided to provide
notes on items such as the breakdown of the fair value of financial instruments by level.
(Additional Information)(Changes in Presentation Methods)
As a result of a revision in management practices implemented in conjunction with application of the
Accounting Standard for Revenue Recognition, to more accurately reflect the actual state of the Group, forreal estate lease revenue, which had previously been recorded in “Net sales” and “Non-operating income,”
and rental expenses on real estate, which had previously been recorded in “Selling, general andadministrative expenses” and “Non-operating expenses,” from the subject consolidated fiscal year, thepresentation of real estate lease revenue has been changed to recording in “Net sales,” and rental expenses
on real estate to “Cost of sales.” Also, in the consolidated balance sheets, the presentation of noncurrent
assets related to the real estate leasing business, which had been recorded in “Real estate for investment,net” in “Investments and other assets,” has been changed to recording in “Buildings and structures, net”
and “Land.”Consolidated financial statements from the previous fiscal year have been recombined to reflect thischange in presentation method.
As a result, in the Consolidated Statements of Income for the previous consolidated fiscal year,¥73million presented in “Rent of real estate for investment” in “Non-operating income” has been
recombined in “Net sales,” while ¥460 million presented in “Selling, general and administrative expenses,”¥4 million presented in “Depreciation on investments in real estate” in “Non-operating expenses,” and ¥1
million presented in “Management cost on real estate for investment” in “Non-operating expenses,” havebeen recombined in “Cost of sales.”At the same time, in the Consolidated Balance Sheets for the previous consolidated fiscal year, ¥431
million presented in “Real estate for investment, net” in “Investments and other assets,” and ¥84 million in“Buildings and structures, net” in “Property, plant, and equipment,” have been recombined as ¥347 million
in “Land.”(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 supervisorycommittee members (excluding outside directors), as well as directors and corporate auditors (excluding
outside corporate auditors) of the Company’s major group companies from November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible
companies in accordance with rules for granting trust-based stock compensation to corporate officers as
determined by the eligible companies. The Company will contribute funds to the trust, and the trust will
use these funds to acquire the Company’s shares, and grant them to eligible directors. In principle, directors
and other officers will receive the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at their bookvalue in the Trust (excluding the amount of ancillary expenses). The book value and number of shares ofsuch treasury stock was ¥191 million, for 97,170 shares at the end of the subject consolidated fiscal year.

― 17 ―

(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 resourcesand evaluate business results.
Based on the major products handled, the YONDOSHI HOLDINGS Group has identified the Jewelry
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 of brandbusinesses. 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, and EAUDOUCE4°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’TYGroup 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 in Western 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.
3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2021 the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)(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

18,497

19,62638,123―38,123

0

180

180

(180)

―

18,497
1,197
23,98319,806889
32,53238,304
2,086
56,515

(180)
(298)
368

38,123
1,788
56,884

464

339

804

26

831

123

335

459

13

473

Notes:
1. (1) The adjustment amount of minus ¥298 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 ¥447 million and eliminations of inter-segment transactions of ¥645 million.
(2) The adjustment amount of ¥368 million for segment assets is mainly comprised of an inter-segment offset amount totaling
minus ¥12,424 million, corporate assets of ¥10,558 million and the balance of unamortized goodwill of ¥2,234 million thatare 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 ¥13 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.

― 18 ―

Fiscal 2022 the Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023)(Millions of yen)
Reporting Segments

Net sales
Revenue from contracts
with customers
Other revenue (Note 3)
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

18,51420,084

38,598―38,598

73

837

910

―

910

18,587

20,921

38,508―38,598

0

150

150

(150)

―

18,587
1,356
23,61721,072942
27,83339,6592,298
51,451

(150)
(319)
1,239

39,508
1,979
50,211

396

352

748

21

770

559

394

954

14

968

Notes:
1. (1) The adjustment amount of minus ¥319 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 ¥482 million and eliminations of inter-segment transactions of ¥659 million.
(2) The adjustment amount of minus ¥1,239 million for segment assets is mainly comprised of an inter-segment offset amount
totaling minus ¥13,867 million, corporate assets of ¥10,890 million and the balance of unamortized goodwill of ¥1,737 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 ¥21 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 ¥14 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.
3. “Other revenue” is real estate lease revenue.
4. Note regarding changes in reporting segments
As stated in (Additional Information) (Changes in Presentation Methods), for real estate lease revenue, which had
previously been recorded in “Net sales” and “Non-operating income,” and rental expenses on real estate, which had
previously been recorded in “Selling, general and administrative expenses” and “Non-operating expenses,” from the
beginning of the first quarter of the subject fiscal year, the presentation of real estate lease revenue has been changed torecording in “Net sales,” and rental expenses on real estate to “Cost of sales.” Segment information for the previous
consolidated fiscal year presents recombined figures. As a result of this change, compared to the figures prior torecombination, net sales in the Jewelry Business increased by ¥73 million, and segment operating income increased by¥66 million.

(Related Information)
Fiscal 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)
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 the Company’s total net sales in the consolidated statements of income, geographical information has
been omitted.

― 19 ―

ii. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90%of the Company’s property, plant and equipment in the consolidated balance sheets, geographicalinformation has been omitted.
3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% ormore of the total operating revenues posted in the consolidated statement of income.
Fiscal 2022, the Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023)
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
1.
Net sales
As the total of net sales to outside customers based in Japan of all business segments represented over 90%of the Company’s total net sales in the consolidated statements of income, geographical information has
been omitted.
2.
Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90%of the Company’s property, plant and equipment in the consolidated balance sheets, geographicalinformation has been omitted.
3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% ormore of the total operating revenues posted in the consolidated statement of income.
(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

167

Adjustment
amount

Total
75

Total

―

243

243

Fiscal 2022, the Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

392

149

Adjustment
amount

Total
542

―

Total

542

(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized Goodwill
by Reporting Segment)
Fiscal 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)
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 ¥2,234 million, respectively. The amounts of goodwill amortized and balance― 20 ―

of unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2022, the Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023)
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 ¥1,737 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 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)
Not applicable.
Fiscal 2022, the Fiscal Year Ended February 28, 2023 (March 1, 2022 to February 28, 2023)
Not applicable.
(Matters Related to Revenue Recognition)
Information analyzing the revenue resulting from contracts with customers is presented in “Notes (Segment
information)”.

― 21 ―

(Per Share Information)(Yen)
Fiscal 2021
(March 1, 2021 to
February 28, 2022)

Net assets per share
Earnings per share

Fiscal 2022
(March 1, 2022 toFebruary 28, 2023)

2,001.22
69.56

1,780.71
53.61

Notes: 1. No statement is made regarding diluted per share net profit for the period because dilutive shares possessing adilutive effect do not exist.
2. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2021
(March 1, 2021 to
February 28, 2022)

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)

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

Fiscal 2022
(March 1, 2022 toFebruary 28, 2023)

1,490
—

1,149
—

1,490

1,149

21,429,623

21,441,448

Fiscal 2021
(March 1, 2021 to
February 28, 2022)

Fiscal 2022
(March 1, 2022 toFebruary 28, 2023)

June 8, 2016
Board resolution
The 9th issuance of new sharesubscription rights
Common stock: 6,500 shares

November 22, 2018
Board resolution
The 11th issuance of newshare subscription rights
Common stock:34,500 shares

June 8, 2016
Board resolution
The 10th issuance of newshare subscription rights
Common stock:19,300 shares

November 22, 2018
Board resolution
The 12th issuance of newshare subscription rights
Common stock:28,200 shares

November 22, 2018
Board resolution
The 11th issuance of newshare subscription rights
Common stock:34,500 shares

July 8, 2020
Board resolution
The 13th issuance of newshare subscription rights
Common stock:21,000 shares

November 22, 2018
Board resolution
The 12th issuance of newshare subscription rights
Common stock:28,200 shares

July 8, 2020
Board resolution
The 14th issuance of newshare subscription rights
Common stock:31,500 shares

July 8, 2020
Board resolution
The 13th issuance of newshare subscription rights
Common stock:21,000 shares

July 7, 2022
Board resolution
The 15th issuance of newshare subscription rights
Common stock:24,000 shares

July 8, 2020
Board resolution
The 14th issuance of newshare subscription rights
Common stock:31,500 shares

July 7, 2022
Board resolution
The 16th issuance of newshare subscription rights
Common stock:28,900 shares― 22 ―

3. The basis for calculating net assets per share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2021
(March 1, 2021 to
February 28, 2022)

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 2022
(March 1, 2022 toFebruary 28, 2023)

42,917

38,214

24

30

(24)
42,893(30)
38,183

21,433,434

21,433,158

4. Company stock remaining in 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 numberof 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 sharecalculation purposes.
The number of treasury stock to be deducted when computing the average number of shares for the period forearnings per share calculation purposes was 67,642 shares for fiscal 2021 and 89,308 shares for fiscal 2022. The
number of treasury stock to be deducted from the total number of shares issued and outstanding as of the end of theperiod for net assets per share calculation purposes was 83,926 shares for fiscal 2021 and 97,170 shares for fiscal
2022.

(Important Subsequent Events)
Not applicable― 23 ―