CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
NINE-MONTH PERIOD OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2019
(March 1, 2018 to November 30, 2018)
January 8, 2019
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Saishi Kimura, Chairman and Representative Director, CEO
Masahiko Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: https://yondoshi.co.jp/
Quarterly Securities Report filing date (planned): January 11, 2019
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): —(Millions of yen rounded down)

1. Consolidated Operating Results for the Nine-Month Period of Fiscal 2018
(March 1, 2018 to November 30, 2018)(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％

Millions of yen％

Millions of yen％

Millions of yen

FY201833,237(1.8)
3,001(13.9)
3,805(14.4)
Nine-Month Period
FY2017
33,834(1.9)
3,487(12.0)
4,445(7.1)
Nine-Month Period
Note: Comprehensive income FY2018 Nine-Month Period: 700 million yen (－82.6%)
FY2017 Nine-Month Period: 4,018 million yen (16.4%)
Net Income
per Share

FY2018Nine-Month Period
FY2017Nine-Month Period％

Millions of yen

814(75.6)

3,332

7.4

Net Income per
Share after Dilution
Yen

Yen

31.71

31.70

130.53130.34(2) Consolidated Financial Position
Total Assets
Millions of yen

November 30, 2018

Net Assets to Total
AssetsNet Assets%

Yen

52,35076.4

2,032.86

53,39980.4

2,077.02

Millions of yen

68,41566,321February 28, 2018
(Reference)
Shareholders’ equity: November 30, 2018: 52,260 million yen
February 28, 2018: 53,299 million yen

Net Assets per Share

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2017
Fiscal 2018
Fiscal 2018
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

32.50
37.50

—
—

32.50

65.00

37.50

75.00

Note: Revision to the most recently announced cash dividend forecast: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2019
(March 1, 2018 to February 28, 2019)(% 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

Fiscal year
endingFebruary 28,
201948,000%(0.1)

Millions of yen%

Millions of yen

5,300 (13.2)

6,850

%

(9.4)

Millions of yen%

Yen

2,800 (47.1)

109.00Note: Revision to the most recently announced operating results forecast: No

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: No(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: No
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:
November 30, 2018: 29,331,356 sharesFeb. 28, 2018: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
November 30, 2018: 3,623,753 sharesFeb. 28, 2018: 3,669,847 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2018 Nine-Month Period: 25,687,725 shares FY2017 Nine-Month Period: 25,530,116 shares
The number of recorded treasury stock is inclusive of 74,800 of the Company’s shares held by the
YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust Account as of theend of the quarterly fiscal period.
The financial statement summary is not subject to auditing by certified public accountants or audit firms.
Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
The forecasts of operating results and other items concerning the future contained in this document are 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 well as
cautionary notes on the use of operating results forecasts, please refer to “1. Qualitative Information on
Business and Financial Results (3) Explanation of Consolidated Results Forecasts and Other Future
Predictions” on page 4.

-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

4

Consolidated Quarterly Financial Statements

5(1)

Consolidated Quarterly Balance Sheets

5(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of7

Comprehensive Income(3)

Notes to Consolidated Quarterly Financial Statements

9(Notes Regarding Going Concern Assumptions)9(Notes Regarding Substantial Changes in Shareholders’ Equity)

9(Additional Information)

9(Segment Information)

11

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the third quarter cumulative period (March 1, 2018 to November 30, 2018) of the fiscal year
ending February 28, 2019, the Japanese economy recovered at a moderate pace owing to improvement incorporate earnings and employment conditions, though the outlook remained clouded as a result of suchfactors as the impact that trade issues will have on the global economy.
In the retail industry, business conditions remained difficult as a result of a slowdown in consumer
spending due to the impact from natural disasters, along with persistent budget-consciousness arisingfrom uncertainty about the future.
Under these circumstances, during the fiscal year ending February 2019, the first year of the fifth
medium-term management plan, the YONDOSHI HOLDINGS Group continued to cultivate humanresources, bolster product capabilities, and assess market trends, with the aim of becoming a century-old
company and brand. Further, the Company pursued 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, net sales for the subject third quarter cumulative period amounted to ¥33,237 million(down 1.8% YoY), with operating income of ¥3,001 million (down 13.9% YoY), and ordinary income of¥3,805 million (down 14.4% YoY). Profit attributable to owners of parent fell to ¥814 million (down
75.6% YoY), due mainly to the recording of ¥1,895 million in tax expense stemming from the conclusionof a contract to transfer shares of an affiliated company.
Operating results by business segment were as follows.

Jewelry Business
The F.D.C. Products Group posted a net sales decline year on year due to the length of time required forthe recovery in bridal jewelry.
As a result, net sales in the Jewelry Business segment amounted to ¥19,599 million (down 5.9% YoY),
with operating income of ¥2,587 million (down 15.3% YoY).
Apparel Business
The AS’TY Group achieved positive returns through its successful efforts to strengthen measures withmajor clients utilizing its planning capabilities and production framework. Retailer age Co., Ltd. achieved
revenue gains over the same period of the previous fiscal year from expanded openings of new locations
for its mainstay everyday fashion brand PALETTE, and measures to strengthen sales promotions.
As a result, net sales in the Apparel Business segment amounted to ¥13,638 million (up 4.9% YoY),
with operating income of ¥557 million (up 13.6% YoY).
(2) Explanation of Financial Condition
Total assets at the end of the subject third quarter cumulative period (November 30, 2018) amounted to¥68,415 million, an increase of ¥2,093 million from the end of the previous fiscal year (February 28,2018). This was due mainly to increases of ¥2,027 million in merchandise and finished goods; and ¥846
million in investment securities. Total liabilities amounted to ¥16,064 million, an increase of ¥3,143
million. This was due mainly to an increase of ¥1,112 million in notes and accounts payable. Total net
assets amounted to ¥52,350 million, a decrease of ¥1,049 million.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on November 14, 2018.

-4-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Third Quarter ofFebruary 28, 2018

the Fiscal Year Ending(As of February 28, 2018)

February 28, 2019
(As of November 30, 2018)ASSETS
Current assets:
Cash and deposits

2,076,174

1,006,964

Notes and accounts receivable ― trade

3,061,207

3,927,918

Short-term investment securities

3,950,000

500,000

Merchandise and finished goods

8,332,336

10,359,365

Work in process

507,681

627,002

Raw materials and supplies

633,136

871,680

Other current assets

988,864

3,902,637

Allowance for doubtful accounts(2,686)(3,791)

19,546,714

21,191,778

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

5,918,332

5,743,341

Land

5,492,215

5,492,215

806,838

755,952

12,217,387

11,991,509

4,220,291

3,847,912

Other, net
Total property, plant and equipment
Intangible assets:
Goodwill
Other intangible assets

122,038

218,081

Total intangible assets

4,342,329

4,065,994

25,768,779

26,614,888

Investments and other assets:
Investment securities
Net defined benefit asset
Other656,629

689,087

3,896,453

3,960,787

Allowance for doubtful accounts(107,030)(98,934)

Total investments and other assets

30,214,831

31,165,827

Total noncurrent assets
Total assets-5-

46,774,548

47,223,331

66,321,262

68,415,109

５．（要約）四半期連結財務諸表(Thousands of yen)
End of the Fiscal Year Ended

End of the Third Quarter ofFebruary 28, 2018

the Fiscal Year Ending(As of February 28, 2018)

February 28, 2019
(As of November 30, 2018)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

4,077,362

5,189,678

Income taxes payable

856,205369,331

Provision for bonuses

251,351

421,337

Provision for directors' bonuses

13,30042,594

Asset retirement obligations

34,406500

Other2,806,317

3,469,401

Total current liabilities

8,038,943

9,492,842

Long-term loans payable

277,470

219,880

Provision for directors' retirement benefits

416,528――

28,752

Noncurrent liabilities:

Provision for directors' stock benefits
Net defined benefit liability

568,010554,443

Asset retirement obligations

1,012,744

1,033,185

Other

2,608,056

4,735,734

Total noncurrent liabilities
Total liabilities

4,882,809

6,571,996

12,921,753

16,064,839

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,846,520

Capital surplus

18,182,008

18,181,495

Retained earnings

37,503,586

36,466,468

Treasury stock(6,310,953)(6,198,792)

Total shareholders’ equity

51,861,161

50,935,692

Valuation difference on available-for-sale securities

1,425,917

1,259,321

Deferred gains or losses on hedges(20,418)

3,426

Revaluation reserve for land

(161,985)(161,985)

Other accumulated comprehensive income:

Foreign currency translation adjustments

78,63865,897

Remeasurements of defined benefit plans

116,129

157,706

1,438,281

1,324,366

Total other accumulated comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-100,066

90,21153,399,509

52,350,269

66,321,262

68,415,109

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Third Quarter Cumulative(Thousands of yen)
Nine-Month Period of theNine-Month Period of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2018

February 28, 2019

(March 1, 2017 to(March 1, 2018 toNovember 30, 2017)

November 30, 2018)

Net sales

33,834,617

33,237,985

Cost of Sales

14,239,649

14,194,601

Gross profit

19,594,968

19,043,384

Selling, general and administrative expenses

16,106,995

16,041,580

Operating income

3,487,973

3,001,803

Non-operating income
Interest income

15,84233,093

Dividends received
Equity in earnings of affiliates

57,99760,036794,692

658,118

Rent of real estate for investment

54,85554,855

Foreign exchange gains

17,802

16,290Other

23,56844,715

Total non-operating income

964,757

867,107

Non-operating expenses
Interest expenses

137

151

Depreciation of real estate for investment

3,514

3,509

Management cost for real estate for investment

1,548

1,461

―

54,559Loss on valuation of derivatives
Other

1,775

3,690

Total non-operating expenses

6,975

63,372

4,445,755

3,805,539

Ordinary income
Extraordinary income
Gain on change in equity
Gain on sales of investment securities
Total extraordinary income

228,883――

244,841

228,883

244,841

69,511
5,676

136,737
8,429

Extraordinary loss
Impairment loss
Loss on closing of stores
Total extraordinary losses

75,187145,167

Net income before income taxes

4,599,452

3,905,213

Income taxes ― current

1,111,942

1,286,172

Income taxes ― deferred

155,118

1,804,528

Total income taxes

1,267,061

3,090,701

Net income

3,332,390

814,511

Profit attributable to owners of parent

3,332,390

814,511-7-

Consolidated Quarterly Statements of Comprehensive Income
Third Quarter Cumulative(Thousands of yen)

Income before minority interests

Nine-Month Period of theNine-Month Period of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2018

February 28, 2019

(March 1, 2017 to(March 1, 2018 toNovember 30, 2017)

November 30, 2018)

3,332,390

814,511

Other valuation difference on available-for-sale securities

496,701(467,844)

Deferred gains or losses on hedges
Foreign currency translation adjustments(15,168)

23,844(5,963)(12,740)

Remeasurements of defined benefit plans, net of tax

39,901

29,899171,076

312,926

686,547
4,018,938(113,914)
700,596

4,018,938

700,596――

Other comprehensive income

Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-8-(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
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.
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 each month. When the trust is concluded, if the trust has earned a profit from a rise in theshare 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, inaccordance 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 thetrust (excluding ancillary expenses). At the end of the subject fiscal year, the book value of the subject
treasury shares was ¥277,662 thousand, for 100,600 shares at the end of the previous consolidated fiscal
year, and ¥206,452 thousand, for 74,800 shares at the end of the third quarter of the subject consolidated
fiscal year.
iii. Book value of debt recorded through application of the gross method
At the end of the previous consolidated fiscal year: ¥277,470 thousandAt the end of the third quarter of the subject consolidated fiscal year: ¥219,880 thousand(Elimination of the Retirement Bonuses for Directors Program)
The Company, at the 68th annual shareholders meeting held on May 17, 2018, decided to make a final
payment of retirement bonuses associated with the elimination of the retirement bonuses for directors
program. Accordingly, the entire amount of the “Provision for directors’ retirement benefits” wasreversed, and the ¥325,058,000 unpaid portion of the final payment shown in the “Other” item of
noncurrent liabilities as “Long-term accounts payable – other.”(Stock Compensation Plan for Directors)
The Company, at its 68th annual shareholders meeting held on May 17, 2018, decided to introduce astock compensation 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.
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. Matters concerning the Company’s stock held in the trust
As of the end of the subject third quarter cumulative period, the trust had not acquired any shares.
(Sale of Shares in an Equity-method Affiliate)
The Company, at its Board of Directors meeting held on November 14, 2018, passed a resolution totransfer part of the shares in the Company’s equity-method affiliate Fuji Co., Ltd. that are held by theCompany’s consolidate subsidiary AS’TY, Inc. to Aeon Co., Ltd. by February 28, 2019. A sharetransfer agreement was concluded the same day. As a result, Fuji will no longer be an equity-method
affiliate of the Company.
i. Reason for the Share Sale
The Company decided to sell the subject shares as part of the capital policy of the YONDOSHIHOLDINGS Group.

-9-ii. Overview of the Equity-method Affiliate Sold
(1) Name
Fuji Co., Ltd.
(2) Address
1-2-1 Miyanishi, Matsuyama, Ehime Prefecture(3) Title and Name of the
Executive Chairman and CEO, Hideo Ozaki
Representative(4) Description of business
Chain store business (retail sales of food, clothing, daily
commodities, etc.)(5) Paid-in Capital¥19,407,000,000
iii. Overview of the Recipient of the Share Transfer(1) Name
Aeon Co., Ltd.
(2) Address
1-5-1 Nakase, Mihama-ku, Chiba, Chiba Prefecture(3) Title and Name of theGroup CEO, President, Representative Executive Officer &Representative
Director, Motoya Okada(4) Description of Business
A holding company involved in administering the businessactivities of the company to be transferred through theownership of shares and equity in retailers, developers,
financial companies, services companies, and businesses
related to these.
iv. Number of Shares Transferred and Status of Shares Held Before and After Transfer(1) Number of Shares Held Before
7,977,316 shares
Transfer(2) Number of Shares Transferred
3,637,300 shares(3) Transfer Value¥7,725,625,000(4) Number of Shares Held After
4,340,016 shares
Transfer(Repurchase of the Company’s Own Shares)
The Company, at its Board of Directors meeting held on November 22, 2018, decided to acquire its
own shares pursuant to the provisions of Article 156 of the Companies Act applied by replacing theterms and phrases pursuant to the provisions of Article 165-3 of said Act. The Board further decided
that the specific method of acquisition would be a tender offer for the Company’s shares. The
acquisition was executed as follows.
i. Reasons for repurchasing the Company’s own shares
The Company will conduct the share buyback in order to improve capital efficiency and exercise agile
capital policies corresponding to changes in the business environment.
ii. Details of the Resolution by the Board of Directors(1) Class of shares to be repurchased
YONDOSHI HOLDINGS’ common shares(2) Total number of shares to be
Up to a maximum of 3,500,100 shares
repurchased(3) Total value of shares repurchased
Up to a maximum of ¥7,693,219 thousand(4) Period for acquisition
From November 26, 2018 to February 5, 2019iii. Overview of the Tender Offer for the Company’s Shares(1) Prescribed number of shares for
3,500,000 sharespurchase(2) Price for the purchases¥2,198 per common share(3) Period of the purchases
From November 26, 2018 to December 21, 2018
(4) Commencement date of settlement January 22, 2019
iv. Result of the Tender Offer for the Company’s Shares(1) Total number of shares subscribed 3,253,733 shares(2) Total number of shares acquired
3,253,733 shares(3) Total value of shares repurchased¥7,151,705 thousand- 10 -

(Segment Information)
Ⅰ The nine-month period of the fiscal year ended February 28, 2018
(March 1, 2017 to November 30, 2017)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

20,832,506

13,002,111

33,834,617―

33,834,617

1,023

697,185698,208(698,208)

―

Total

20,833,529

13,699,297

34,532,826(698,208)

33,834,617

Segment income

3,054,929

491,048

3,545,977(58,003)3,487,973

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥58,003 thousand for segment income mainly includes corporate expenses that are notallocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

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

The nine-month period of the fiscal year ending February 28, 2019
(March 1, 2018 to November 30, 2018)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

19,599,585

13,638,399

33,237,985―

33,237,985

709

685,276685,985(685,985)

―

Total

19,600,295

14,323,676

33,923,971(685,985)

33,237,985

Segment income

2,587,417

557,958

3,145,375(143,572)

3,001,803

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥143,572 thousand for segment income mainly includes amortization of goodwill
totaling minus ¥372,378 thousand, corporate expenses that are not attributable to individual reporting segments amounting
to minus ¥405,401 thousand and elimination of inter-segment transactions of ¥634,207 thousand. Corporate expenses areprimarily 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(Major Impairment Loss Relating to Fixed Assets)
An impairment loss relating to fixed assets was posted in the Jewelry Business segment. The posted
value of this impairment loss during the third quarter of the fiscal year under review was ¥110,528
thousand.

- 11 -