CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2023
(March 1, 2022 to August 31, 2022)
October 7, 2022

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
representative for Finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 14, 2022
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for analysts and institutional investors)
Dividend payment commencement date (planned): November 11, 2022
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2022
(March 1, 2022 to August 31, 2022)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating Income
Ordinary Income
owners of parent

FY2022 First Half
FY2021 First Half
Note: Comprehensive income

Millions of yen％％

Millions of yen％

Millions of yen％

18,514

4.0

645

50.1

822

14.9

513

83.2

17,806(1.0)

429(58.8)

715(44.3)

280(53.5)

Millions of yen

FY2022 First Half: (2,913) million yen (－%)

Net Income
per Share

FY2022 First Half
FY2021 First Half

FY2021 First Half: 740 million yen (－46.2%)

Net Income per
Share after Dilution
Yen

Yen

23.95

—

13.08
—
(Reference) Operating income before the amortization of goodwill:
FY 2022 First Half: ¥893 million
FY 2021 First Half: ¥678 million
The Company considers operating income before the amortization of goodwill to be an important management indicator.
Note: The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) fromthe beginning of the first quarter of the subject fiscal year. Figures for the second quarter of the fiscal year ending
February 28, 2023, are after application of this accounting standard.

(2) Consolidated Financial Position
Total Assets
Millions of yen

August 31, 2022
February 28, 2022

Net Assets
Millions of yen

52,89039,120Net Assets to Total
AssetsNet Assets per Share

%

Yen

73.9

1,823.11

56,88442,91775.4
2,001.22(Reference)Shareholders’ equity: August 31, 2022: 39,093 million yen
February 28, 2022: 42,893 million yen
Note: The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) fromthe beginning of the first quarter of the subject fiscal year. Figures for the second quarter of the fiscal year ending
February 28, 2023, are after application of this accounting standard.

-1-2. Dividends
Dividends per Share
(Record Date)

End of 1Q

End of 2Q
Yen

End of 3Q
Yen

Fiscal 2021—
41.50
Fiscal 2022—
41.50
Fiscal 2022
(Forecast)
Note: Revision to the most recently announced cash dividend forecast: No

3.

AnnualYear-end
Yen

Yen

Yen

—

41.50

83.00

—

41.50

83.00

Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2023
(March 1, 2022 to February 28, 2023)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable to
Net Income
Operating Income
Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen%

Millions of yen%

Millions of yen

Fiscal year
ending40,5006.2
2,700 51.0
3,300
February 28,2023
Note: Revision to the most recently announced operating results forecast: Yes(Reference) EPS before the amortization of goodwill in FY 2022 is ¥107.11.

%

30.8

Millions of yen

1,800

%

20.8

Yen en

83.96

Notes
(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: Yes(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
August 31, 2022: 24,331,356 sharesFeb. 28, 2022: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2022: 2,888,238 sharesFeb. 28, 2022: 2,897,922 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2022 First Half: 21,439,768 shares
FY2021 First Half: 21,425,904 shares
Note: 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 second quarter of the subject consolidated fiscal year.

The financial statement summary is not subject to auditing by certified public accountants or audit firms.
Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
1. The forecasts of operating results and other items concerning the future contained in this document are
based on management’s assumptions and beliefs that are determined to be reasonable in light ofcurrently available information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety
of factors actual results may differ materially from forecasts. For the assumptions that underpin
operating results forecasts as well as cautionary notes on the use of operating results forecasts, pleaserefer to “1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated
Results Forecasts and Other Future Predictions” on page 5.
2.

The Company plans to hold financial results briefing on October 7, 2022 (Friday) for institutional
investors and analysts. Presentation materials used that day will be posted to the Company’s website
promptly after the briefing.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

4(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income Second Quarter Cumulative

8

Consolidated Quarterly Statements of Comprehensive Income Second Quarter Cumulative

9(3)

Consolidated Quarterly Statements of Cash Flows

10

(4)

Notes to Consolidated Quarterly Financial Statements

12(Notes Regarding Going Concern Assumptions)

12(Notes Regarding Substantial Changes in Shareholders’ Equity)

12(Changes in Accounting Policies)

12(Adoption of Accounting Standard for Fair Value Measurement)

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

13

Financial Statements)(Additional Information)

13(Segment Information)

15(Matters related to revenue recognition)

16(Important Subsequent Events)

16

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first half period (March 1, 2022 to August 31, 2022) of fiscal 2022 (the fiscal year ending
February 28, 2023) despite a temporary upswing in the number of COVID-19 cases, economic activity
continued to return to normal. Meanwhile, the ongoing surge in resource and energy prices as well as the
sharp depreciation in the value of the yen are impacting activities throughout the corporate sector.
While consumer spending exhibited a pickup owing to the relaxation of restrictions on people’s
movements, which triggered an increase in opportunities to go out, the outlook remains unclear amid
concerns of a cooling off in consumer sentiment as a result of the series of price hikes in the retail industry.
Under such circumstances, during fiscal 2022, the second year of the sixth medium-term management
plan, YONDOSHI HOLDINGS Group, in response to the changes in the business environment, willleverage the strengths of the corporate group to the fullest extent in order to provide products and services
that exceed customer expectations, with the aim of further growth. In addition, the Company is practicing
sustainable management to establish a highly trusted corporate group, and is working to enhanceenterprise value by strengthening internal controls, providing shareholder returns, and making medium tolong-term investments linked to earnings growth.
As a result, net sales for the subject first half period amounted to ¥18,514 million (up 4.0% from thesame period of the previous fiscal year), with operating income of ¥645 million (up 50.1%), ordinary
income of ¥822 million (up 14.9%) and profit attributable to owners of parent to ¥513 million (up 83.2%).
Operating income before the amortization of goodwill, which the Company considers to be an importantmanagement indicator, amounted to ¥893 million (down 31.7%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group, which operates the jewelry business, recorded strong trends in 50th
anniversary limited-edition products as well as fashion jewelry including earrings and bracelets. In
addition, e-commerce business sales also expanded steadily on the back of the full renewal of the ecommerce site in March.
As a result, net sales in the Jewelry Business segment amounted to ¥8,306 million (up 4.7% from thesame period of the previous fiscal year), with operating income of ¥370 million (up 293.9%).
Apparel Business
Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, recorded an increase in sales.
Operating income trends were also firm. In addition to the opening of two new stores, these results were
attributable to existing store growth on the back of efforts to strengthen product proposal capabilities.
The AS’TY Group reported an upswing in sales. Despite the negative impact in part by the weak yen
and higher material costs, this upswing in sales was largely attributable to the recovery in demand andefforts to strengthen activities with mainstay business partners.
As a result, net sales in the Apparel Business segment amounted to ¥10,207 million (up 3.4% fromthe same period of the previous fiscal year). Operating income declined to ¥490 million (down 10.3%).
(2) Explanation of Financial Condition
Assets, Liabilities and Net Assets
Total assets as of the end of the second quarter (August 31, 2022) of the fiscal year ending February 28,
2023 amounted to ¥52,890 million, a decrease of ¥3,993 million from the end of the previous fiscal year
(February 28, 2022). This decrease in total assets is largely due to the decline in investment securities of¥3,372 million. Total liabilities amounted to ¥13,770 million, a decrease of ¥196 million from the end of
the previous fiscal year. Despite the increase in short-term borrowings of ¥1,300 million, this decrease
was mainly due to the downturn in deferred tax liabilities of ¥1,818 million. Total net assets as of thesubject period under review came to ¥39,120 million, a decrease of ¥3,797 million from the end of theprevious fiscal year. This largely reflected to decline in valuation difference on available-for-salesecurities of ¥3,469 million.
Cash Flows
Cash and cash equivalents as of the end of the second quarter of the fiscal year under review stood at¥2,332 million, a decrease of ¥567 million from the end of the previous fiscal year.

-4-(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥1,282 million, up ¥1,268 million from the same
period of the previous fiscal year. Major cash inflows included income before income taxes and such noncash items as depreciation.
(Cash Flows from Investing Activities)
Net cash used in investing activities came to ¥2,234 million, down ¥2,407 million from the same periodof the previous fiscal year. The principal cash outflows included the purchase of investment securities aswell as property, plant and equipment.
(Cash Flows from Financing Activities)
Net cash provided by financing activities amounted to ¥383 million, up ¥1,282 million from the same
period of the previous fiscal year. While YONDOSHI HOLDINGS Group recorded such cash outflows
as cash dividends paid, this was more than offset by cash inflows including net increase in short-termborrowings.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Taking into consideration the Company’s consolidated results for the first half of the fiscal year underreview, YONDOSHI HOLDINGS Group revised its net sales forecast for the full fiscal year previously
announced on April 14, 2022. Meanwhile, trends in each level of profit are projected to come in in linewith plans owing to the increase in profit in the Jewelry Business in the peak Christmas period andsuccessful efforts to reduce overhead expenses.
Net Sales

Operating
Income(Millions of yen, %)ProfitNet Income per
attributable to
Share (Yen)owners of parent

Ordinary
IncomePrevious Forecast (A)41,500

2,700

3,000

1,800

83.97

Revised Forecast (B)40,500

2,700

3,000

1,800

83.96

Net Change (B – A)

(1,000)

0

0

0

―

Percentage Change

(2.4)

0

0

0

―

38,123

1,788

2,293

1,490

69.56

(Reference) Results of theprevious fiscal year ended
February 2022

-5-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 28, 2022
(As of February 28, 2022)

End of the Second Quarter of
the Fiscal Year Ending
February 28, 2023
(As of August 31, 2022)

2,900
2,445
7,713
293
736
813
(4)

2,334
2,803
7,728
226
718
608
(4)

14,89914,415

4,630
5,839
429

4,592
5,839
449

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Other, net

10,89910,881Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

2,234
289

1,986
358

Total intangible assets

2,523

2,344

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

24,037
492
4,083
(51)

20,665
510
4,124
(50)

Total investments and other assets

28,562

25,24941,98538,47556,88452,890Total noncurrent assets
Total assets

-6-

５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 28, 2022
(As of February 28, 2022)

End of the Second Quarter of
the Fiscal Year Ending
February 28, 2023
(As of August 31, 2022)

2,181
738
－
353
196
10
－
1,966

2,281
717
1,300
516
198
27
28
2,019

5,447

7,089

146

155

514
1,400
6,458

519
1,348
4,657

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

8,519

6,680

Total liabilities

Total noncurrent liabilities

13,966

13,770

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

2,486
7,196
31,707(6,175)

2,486
7,189
31,314(6,148)35,21534,842Other accumulated comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans

Total shareholders’ equity

8,018
8
(233)
1
(117)

4,548
50
(233)
3
(117)

Total other accumulated comprehensive income

7,677

4,250

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

-7-

24

27

42,917

39,12056,88452,890(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2022
(March 1, 2021 toAugust 31, 2021)

First Half of the
Fiscal Year Ending
February 28, 2023
(March 1, 2022 toAugust 31, 2022)

Net sales
Cost of Sales

17,806
8,782

18,514
9,353

Gross profit

9,024

9,161

Selling, general and administrative expenses

8,594

8,516

Operating income

429

645

Non-operating income
Interest income
Dividends received
Foreign exchange gains
Subsidy income
Other

39
90
14
128
20

42
100
5
0
30

293

179

0
0
2
5

0
―
1
0

Total non-operating income
Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts
Loss on cancellation of insurance policies
Other

8

2

Ordinary income

Total non-operating expenses

715

822

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

―
64

293
―

Total extraordinary income

64

293

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

183
―
―
61
―

95
5
9
―
7

Total extraordinary losses

244

117

Net income before income taxes

535

997

Total income taxes

255

484

Net income

280

513

Profit attributable to owners of parent

280

513

-8-

Consolidated Quarterly Statements of Comprehensive Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2022
(March 1, 2021 toAugust 31, 2021)
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-9-First Half of the
Fiscal Year Ending
February 28, 2023
(March 1, 2022 toAugust 31, 2022)
280

513

457
(3)
(1)
7

(3,469)
41
1
(0)

460
740

(3,426)(2,913)740(2,913)

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2022
(March 1, 2021 toAugust 31, 2021)
Cash flows from operating activities:
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in other provisionInterest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities

First Half of the
Fiscal Year Ending
February 28, 2023
(March 1, 2022 toAugust 31, 2022)

535
426
183
248
(1)
(55)
(2)
(1)
(129)
0
(5)
―
(64)
(128)
61

997
390
95
248
0
2
(13)
25
(142)
0
0
(293)
―
(0)
―

50

(356)

199

69

(376)

79

(21)
(479)
(59)
10
(157)

(17)
77
(78)
3
103

Subtotal

231

1,191

Interest and dividends income received
Interest expenses paid
Subsidies for employment adjustment received
Subsidies received
Allowance for absence from work paid
Income taxes paid
Income taxes refund

134
(0)
52
124
(61)
(853)
386

142
(0)
―
0
―
(399)
347

14

1,282

Subsidies for employment adjustment
Subsidy income
Allowance for absence from work
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Increase (decrease) in accounts payable ― other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in other assets
Increase (decrease) in other liabilities

Net cash provided by (used in) operating activities- 10 -

(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2022
(March 1, 2021 toAugust 31, 2021)
Cash flows from investing activities:
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
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
Collection of long-term loans receivable
Purchase of long-term prepaid expenses
Other payments
Other proceeds

First Half of the
Fiscal Year Ending
February 28, 2023
(March 1, 2022 toAugust 31, 2022)

500
(274)
0
(2)
(2,029)
0
2,000
0
(10)
(61)
51

―
(380)
―
(119)
(2,003)
364
―
0
(11)
(122)
39

Net cash provided by (used in) investing activities

173(2,234)

Cash flows from financing activities:
Net increase (decrease) in short-term borrowings
Purchase of treasury stock
Cash dividends paid
Other, net

―
(0)
(870)
(29)

1,300
(0)
(892)
(23)

Net cash provided by (used in) financing activities

(899)

383

4

1

Net increase (decrease) in cash and cash equivalents

(707)

(567)

Cash and cash equivalents at beginning of period

2,732

2,900

Cash and cash equivalents at end of period

2,025

2,332

Effect of exchange rate changes on cash and cash equivalents- 11 -

(4) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
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 first quarter of the subject fiscal year. Under this accounting
standard, revenue is recognized when control over promised goods or services is transferred tocustomers, 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 Accounting Standard 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 over the 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 thatremain 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
and services 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 the transaction price. Also, of the expenses treated as selling, general and administrative
expenses, the transport cost for articles necessary to fulfill performance obligations has beenchanged to a method of recording 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 the returned 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 as repayment liability, while assets recognized as the rights to recover articles from customers
at the time of settlement 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 thetransitional 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 toperiods before the beginning of the first quarter of the subject fiscal year was added to or deducted fromretained earnings at the beginning of the first quarter of the subject fiscal year, and the new accounting
policy was applied with effect from the opening balance of retained earnings.
As a result, net sales in the first half period of the subject fiscal year decreased by ¥79 million,
while cost of sales increased by ¥84 million, but the impact on operating income, ordinary income, andprofit before income taxes was negligible. The balance of retained earnings at the beginning of thesubject fiscal year decreased by ¥13 million. Of note, in accordance with transitional treatment as- 12 -

stipulated in Paragraph 28-15 of “Accounting Standard for Quarterly Financial Reporting” (ASBJ
Statement No. 12, March 31, 2020), information analyzing the revenue resulting from contracts withcustomers related to the first half period of the previous fiscal year, is not presented.
(Adoption of Accounting Standard for Fair Value Measurement)
Effective from the beginning of the first quarter of the subject fiscal year, the Company adopted the“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.
(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial
Statements)(Calculation of Tax Expense)
Tax expense has been calculated by rationally estimating the effective tax rate after the application oftax effect accounting for profit before income taxes in the consolidated fiscal year, including the subject
second quarter period, and multiplying this estimated effective tax rate by profit before income taxes.
(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,
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, generaland administrative expenses” and “Non-operating expenses,” from the beginning of the first quarter ofthe subject fiscal year, the presentation 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 beenrecorded in “Real estate for investment, net” in “Investments and other assets,” has been changed torecording in “Buildings and structures, net” and “Land.”Consolidated financial statements from the previous fiscal year have been recombined to reflect
this change in presentation method.
As a result, in the Consolidated Quarterly Statements of Income for the previous first half period,¥36 million presented in “Rent of real estate for investment” in “Non-operating income” has been
recombined in “Net sales,” while ¥231 million presented in “Selling, general and administrative
expenses,” ¥2 million presented in “Depreciation on investments in real estate” in “Non-operating
expenses,” and ¥0 million presented in “Management cost on real estate for investment” in “Nonoperating expenses,” have been recombined in “Cost of sales.”At the same time, in the Consolidated Balance Sheets for the previous 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 andsupervisory committee members (excluding outside directors), as well as directors and corporate
auditors (excluding outside corporate auditors) of the Company’s major group companies from
November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible
companies in accordance with rules for granting trust-based stock compensation to corporate officers as
determined by the eligible companies. The Company will contribute funds to the trust, and the trust will
use these funds to acquire the Company’s shares, and grant them to eligible directors. In principle,- 13 -

directors and other officers will receive the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at theirbook value in the Trust (excluding the amount of ancillary expenses). The book value and number ofshares of such treasury stock was ¥168 million, for 83,926 shares at the end of the previous consolidated
fiscal year, and ¥191 million, for 97,170 shares at the end of the second quarter of the subject
consolidated fiscal year.

- 14 -

(Segment Information)
Ⅰ The first half of the fiscal year ended February 28, 2022 (March 1, 2021 to August 31, 2021)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

7,931

9,875

17,806―

17,806

0

74

74

(74)

―

Total

7,931

9,949

17,881(74)

17,806

Segment income

94

547

641

(211)

429

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥211 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥244 million and elimination of inter-segment transactions of ¥282 million. Corporate expenses are primarily
general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.

Ⅱ The first half of the fiscal year ending February 28, 2023 (March 1, 2022 to August 31, 2022)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

8,270

9,788

18,058―18,058

36

419

455

―

455

8,306

10,207

18,514―

18,514

0

61

61

(61)

―

Total

8,306

10,26918,575(61)

18,514

Segment income

370

490

861

(215)

645

Net sales
Revenue from contracts
with customers
Other revenue
Net sales to outside
customers
Intersegment net sales
and transfers

Notes:
1. The adjustment amount of minus ¥215 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥265 million and elimination of inter-segment transactions of ¥297 million. Corporate expenses are primarily
general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.
3. “Other revenue” is real estate lease revenue.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.

- 15 -

3. 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 to recording in “Net sales,” andrental expenses on real estate to “Cost of sales.” Segment information for the previous second half
period presents recombined figures. As a result of this change, compared to the figures prior torecombination, net sales in the Jewelry Business increased by ¥36 million, and segment operating
income increased by ¥33 million.
(Matters Related to Revenue Recognition)
Information analyzing the revenue resulting from contracts with customers is presented in “Notes(Segment information)”.
(Important Subsequent Events)
Not applicable- 16 -