CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
NINE-MONTH PERIOD OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2021
(March 1, 2020 to November 30, 2020)
January 6, 2021
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Saishi Kimura, Chairman and Representative Director, CEO
Masahiko Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): January 13, 2021
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): —(Millions of yen rounded down)

1. Consolidated Operating Results for the Nine-Month Period of Fiscal 2020
(March 1, 2020 to November 30, 2020)(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

FY2020Nine-Month Period
FY2019Nine-Month Period％

Millions of yen

Note: Comprehensive income

Millions of yen％

Millions of yen％

Millions of yen％

28,323(13.6)

1,874(38.0)

2,210(32.8)

1,188(40.8)

32,776

(1.4)

3,025

0.8

3,289

(13.6)

2,009

146.7

FY2020 Nine-Month Period: 2,180 million yen (11.3%)
FY2019 Nine-Month Period: 1,958 million yen (179.5%)

Net Income
per Share

FY2020Nine-Month Period
FY2019Nine-Month Period

Net Income per
Share after Dilution
Yen

Yen

54.80

—

90.49

90.49

(Reference) Operating income before the amortization of goodwill:
FY 2020 Nine-Month Period: ¥2,246 million
FY 2019 Nine-Month Period: ¥3,397 million
The Company considers operating income before the amortization of goodwill to be an important management indicator.

(2) Consolidated Financial Position
Total Assets

Net Assets per Share%Yen

55,40839,77471.7

1,843.07

53,73739,58873.5

1,822.10

Millions of yen

November 30, 2020
February 29, 2020

Net Assets to Total
AssetsNet Assets
Millions of yen(Reference)Shareholders’ equity: November 30, 2020: 39,748 million yen

February 29, 2020: 39,514 million yen

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2019
Fiscal 2020
Fiscal 2020
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

40.00
40.50

—
—

40.00

80.00

40.50

81.00

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

39,000%(13.3)

Millions of yen

2,900

%

(27.1)

Millions of yen

3,300

%

Millions of yen(23.5)%

Yen

2,000 (19.2)

92.19

Note: Revision to the most recently announced operating results forecast: None
(Reference) Forecast EPS before the amortization of goodwill for the full FY 2020 is ¥115.08.

Notes(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: Yes(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: No
2) Changes of accounting principles other than 1) above: Yes
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, 2020: 24,331,356 sharesFeb. 29, 2020: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
November 30, 2020: 2,764,848 sharesFeb. 29, 2020: 2,645,286 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2020 Nine-Month Period: 21,694,081 shares FY2019 Nine-Month Period: 22,202,155 shares
Note: The number of recorded treasury stock includes 67,136 of the Company’ shares held by the Shares Grant
Trust for Officers as of the end of the third quarter of the fiscal year.

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 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

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income(3)

Consolidated Quarterly Statements of Income Third Quarter Cumulative

8

Consolidated Quarterly Statements of Comprehensive Income Third Quarter Cumulative

9

Notes to Consolidated Quarterly Financial Statements

10(Notes Regarding Going Concern Assumptions)10(Note in the Event of a Significant Change in the Amount of Shareholders’ Equity)

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

10

Financial Statements)(Changes in Accounting Policy)

10(Additional Information)

10(Segment Information)

11(Important Subsequent Events)

12

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the third quarter cumulative period (March 1, 2020 to November 30, 2020) of fiscal 2020 (ending
February 28, 2021), conditions in the Japanese economy were extremely severe, with a slump in businessperformance and a drop in personal consumption amid the restrictions placed on economic activity due
to the COVID-19 emergency.
In the retail industry, the outlook remained clouded as a result of the impact from the government’s
call for people to remain at home, along with business suspensions and shortened operating hours at stores.
In addition, the worsening employment and income situation that continued after the state of emergency
was lifted raised concerns of a further cooling off in consumer sentiment.
Under these circumstances, during fiscal 2020, the final year of the fifth medium-term management
plan, the YONDOSHI HOLDINGS Group continued to cultivate human resources, bolster productcapabilities, and assess market trends, with the aim of becoming a century-old company and brand.
Further, the Company practiced CSR-based management to establish a highly trusted corporate group,
and worked to enhance enterprise value by strengthening internal controls, providing shareholder returns,
and making medium to long-term investments linked to earnings growth.
As a result, for the subject third quarter cumulative period, net sales amounted to ¥28,323 million(down 13.6% from the same period of the previous fiscal year), with operating income of ¥1,874 million(down 38.0%), ordinary income of ¥2,210 million (down 32.8%), and profit attributable to owners ofparent of ¥1,188 million (down 40.8%). Operating income before the amortization of goodwill, which has
been designated an important management indicator, amounted to ¥2,246 million (down 33.9%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group implemented measures to help prevent the spread of COVID-19, including
major suspending business operations and shortening operating hours at stores from late March throughthe end of May. People continued to refrain from going out even after the end of the state of emergency,
but with the shift back to normal business operations, sales at stores have been recovering.
As a result, net sales in the Jewelry Business segment amounted to ¥13,824 million (down 26.6% fromthe same period of the previous fiscal year), with operating income of ¥1,224 million (down 49.2%).
Apparel Business
The AS’TY Group made efforts to maintain the supply chain by increasing the number of local staff atoverseas production sites. The Group also improved operating income over the same period of theprevious fiscal year by focusing on cost reductions. Retailer age Co., Ltd., which operates the everyday
fashion brand PALETTE, recorded positive sales trends for items related to everyday life, fulfilling its
role as part of the social infrastructure supporting the lives of local customers. Due to these efforts,
existing stores posted substantial growth while stores that were newly opened in line with the current
period plan also trended positively, leading to record-high results for both net sales and operating income.
As a result, net sales in the Apparel Business segment amounted to ¥14,499 million (up 4.1% from thesame period of the previous fiscal year), with operating income of ¥929 million (up 21.3%).
(2) Explanation of Financial Condition
Total assets at the end of the subject third quarter cumulative period (November 30, 2020) amounted to¥55,408 million, an increase of ¥1,671 million from the end of the previous fiscal year (February 29,2020). This was due mainly to an increase of ¥1,218 million in cash and deposits. Total liabilities
amounted to ¥15,633 million, an increase of ¥1,484 million from the end of the previous fiscal year. Thiswas due mainly to an increase of ¥600 million in short-term borrowings. Total net assets at the end of thesubject period amounted to ¥39,774 million, an increase of ¥186 million from the end of the previous
fiscal year. This was due mainly to an increase of ¥973 million in the valuation difference on availablefor-sale securities.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Full-year consolidated results forecasts for fiscal 2020 are unchanged from those announced on July 8,
2020.
Of note, because the timing of return to normal activity following COVID-19 remains uncertain, the-4-

future status of the pandemic and extent to which it is controlled could have a significant impact on
consolidated earnings..

-5-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

End of the Third Quarter of
the Fiscal Year Ending
February 28, 2021
(As of November 30, 2020)

785
2,975
8,356
469
1,262
3,128
(2)

2,004
3,270
9,125
513
1,002
1,047
(4)

16,976

16,960

5,307
5,492
698

5,175
5,492
597

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

11,498

11,265Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

3,227
214

2,854
216

Total intangible assets

3,441

3,070

16,507
582
4,782
(51)

18,863
610
4,693
(55)

Investments and other assets:
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-6-

21,82024,112

36,76038,44853,73755,408５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

End of the Third Quarter of
the Fiscal Year Ending
February 28, 2021
(As of November 30, 2020)

3,902

―

4,271
600

82
434
227
24
70
3,109

479
317
39
12
3,096

7,851

8,817

79

108

500
1,358
4,358

503
1,413
4,790

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term loans payable
Current portion of long-term loans payable
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
Total noncurrent liabilities

―

6,297

6,816

Total liabilities

14,14915,633

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

2,486
7,223
32,108(5,751)

2,486
7,208
31,544(5,930)36,06635,309Other 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

3,594
2
(161)
56
(43)

4,568
(6)
(161)
79
(38)

Total other accumulated comprehensive income

3,447

4,439

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

-7-

74

26

39,58839,77453,73755,408

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Third Quarter Cumulative(Millions of yen)
Nine-Month Period of the
Fiscal Year Ended
February 29, 2020
(March 1, 2019 toNovember 30, 2019)

Nine-Month Period of the
Fiscal Year Ending
February 28, 2021
(March 1, 2020 toNovember 30, 2020)

Net sales
Cost of Sales

32,776
14,11428,32313,097Gross profit

18,661

15,226

Selling, general and administrative expenses

15,636

13,351

Operating income

3,025

1,874
101
140
54

Foreign exchange gains
Other

35
144
54
0
51

Total non-operating income

286

362

1
3
1

2
3
7
2
1
2
4
2

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

Non-operating expenses
Interest expenses
Depreciation of real estate for investment
Management cost for real estate for investment
Foreign exchange losses
Commission for purchase of treasury shares
Provision of allowance for doubtful accounts
Loss on cancellation of insurance policies
Other

―
9

―
―
6

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on reversal of share acquisition rights
Subsidies for employment adjustment
Reversal of loss on liquidation of subsidiaries
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores
Allowance for absence from work
Loss on liquidation of subsidiaries
Loss on liquidation of brands
Loss on valuation of investment securities

―
65

21

26

3,289

2,210

99

―
―
―

22
52
462
28

99

566

188
40

108
27
405
6
121
75

―
―
―
144

Total extraordinary losses

372

745

Net income before income taxes

3,016

2,032

Total income taxes

1,007

843

Net income

2,009

1,188

Profit attributable to owners of parent

2,009

1,188

-8-

Consolidated Quarterly Statements of Comprehensive Income
Third Quarter Cumulative(Millions of yen)
Nine-Month Period of the
Fiscal Year Ended
February 29, 2020
(March 1, 2019 toNovember 30, 2019)
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-

Nine-Month Period of the
Fiscal Year Ending
February 28, 2021
(March 1, 2020 toNovember 30, 2020)

2,009

1,188

(57)
7
1
(1)

973
(9)
22
4

(50)
1,958

991
2,180

1,958

2,180

(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Application of Special Accounting Treatment in the Preparation of the Consolidated 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
third quarter period, and multiplying this estimated effective tax rate by profit before income taxes.
(Changes in Accounting Policy)(Change in Calculation Method for Tax Expense)
Up to now, the Company and its consolidated subsidiaries have calculated tax expense using principal
methods. However, following the organizational changes to strengthen management functions andenhance operational efficiency, in order to further enhance the efficiency of account settlement for theCompany and its consolidated subsidiaries, from the subject first quarter period the Company isswitching to a method of rationally estimating the effective tax rate after the application of tax effectaccounting for profit before income taxes, and multiplying this estimated effective tax rate by profit
before income taxes.
Of note, the impact of this change is negligible, and so has not been applied retroactively.
(Additional Information)(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stockcompensation plan (hereinafter, the “Plan”), with eligible persons the Company’s directors (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,
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 sharesof such treasury stock was ¥114 million, for 45,353 shares at the end of the previous consolidated fiscal
year, and ¥144 million, for 67,136 shares at the end of the third quarter of the subject consolidated fiscal
year.
(Accounting Estimates)
Amid heightened awareness of preventing the spread of COVID-19, as of the end of the subject third
quarter cumulative period, the Company expects the current inclination among people to refrain fromgoing out in public to continue, and that this will affect demand to a certain degree.
At the end of the second quarter, the Company had assumed that demand would gradually recover
over the course of the subject fiscal year. However, considering the current situation for the COVID-19
crisis, the Company is changing its assumption to “conditions will gradually improve, but the effects ofthe current situation will persist for a certain period, even after the subject fiscal year,” and has madeaccounting estimates for impairment of fixed assets.
Of note, because the timing of a return to a normal state from the COVID-19 crisis remains unclear,- 10 -

factors such as the future spread of the infection, and conditions surrounding a return to a normal
situation, could have a considerable impact on consolidated results.
(Segment Information)
Ⅰ The nine-month period of the fiscal year ended February 29, 2020
(March 1, 2019 to November 30, 2019)
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

18,846

13,92932,776―32,776

0

451

452

(452)

―

Total

18,847

14,38133,228(452)

32,776

Segment income

2,410

766

3,176

(151)

3,025

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥151 million for segment income mainly includes amortization of goodwill totaling
minus ¥372 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥401 million and elimination of inter-segment transactions of ¥622 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(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 cumulative period of the fiscal year under review was ¥162 million.

Ⅱ The nine-month period of the fiscal year ending February 28, 2021
(March 1, 2020 to November 30, 2020)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

13,824

14,49928,323―28,323

0

148

148

(148)

―

Total

13,824

14,64728,472(148)

28,323

Segment income

1,224

929

2,154

(280)

1,874

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥280 million for segment income mainly includes amortization of goodwill totaling
minus ¥372 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥406 million and elimination of inter-segment transactions of ¥498 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.

- 11 -

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

(Important Subsequent Events)
Not applicable- 12 -