YONDOSHI HOLDINGS INC.
First Section, Tokyo Stock Exchange (8008)

Investors’ Presentation
Results for the First Half of Fiscal 2015
(The Fiscal Year Ending February 29, 2016)
October 5, 2015

Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2015,
the Fiscal Year Ending February 29, 2016
Ⅱ. Business Results Forecasts for Fiscal 2015 as well as Priority Issues andMeasures for the Second
Ⅲ. Progress under the 4th Medium-Term Management Plan

Hidenori Suzuki, President and Representative Director. YONDOSHI HOLDINGS INC.
Note: Amounts identified in this report are presented in millions of yen rounded down. Percentage figures are calculated from raw data.

Disclaimer: Operating forecasts and forward-looking statements that are not of historic fact are based on information available
to management as of the date of this report. Subject to a variety of risks and uncertainties, these forecasts and forward-looking
statements may differ substantially from actual results due to a diversity of factors including changes in the Company’s
operating environment, market trends and fluctuations in foreign currency exchange rates. As a result, readers are advised not
to rely solely on the information provided as the basis for investment decisions.

2Overview of Consolidated Operating Results
Increase in revenues; trends in operating income, ordinary income, andnet income in excess of plans
Net sales: ¥24,040 million (+1.0% YoY)
Ordinary income: ¥2,380 million (-6.9% YoY)

Operating income: ¥2,200 million (-2.5% YoY)
Net income: ¥1,380 million (-10.3% YoY)
(Millions of yen)

2,260

24,04823,815Net sales
1H FY2014
Actual Results

1H FY2015
Actual Results

Net sales
Gross profit
Gross profit margin (%)
Selling, general andadministrative (SG&A) expenses

2,382

Operating income

Ordinary income

1H FY2014
1H FY2015
Actual Results Actual Results

1H FY2014
1H FY2015
Actual Results Actual Results

1H FY2014(2014/8)(Millions of yen, %)

2,558

2,203

ActualResults(%)

1H FY2015 (201458)
Plans

(%)

1,542

Net income
1H FY2014
1H FY2015
Actual Results Actual Results

1H FY2015 (2015/8)
ActualResults

1,383

(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

23,815
13,294
55.8

100.0
55.8

24,00013,569
56.5

100.0
56.5

24,048
13,633
56.7

100.0
56.7

+1.0
+2.6
+0.9pt+0.2+0.5+0.2pt11,033

46.3

11,56948.2

11,430

47.5

+3.6

－1.2

2,260
9.5
2,000
8.3
2,203
9.2
+10.2
－2.5
2,558
10.7
2,300
9.6
2,382
9.9
+3.6
－6.9
Ordinary income
1,542
6.5
1,300
5.4
1,383
5.8
+6.4
－10.3
Net income(Note: Amount equivalent to previous operating revenues posted as net sales, effective from the fiscal year ending February 29, 2016.)
Operating income3Operating Income
Operating income: ¥2,200 million

Operating income margin 9.2%

Cost of sales ratio
1H FY2014 1H FY 2015
44.2% ⇒ 43.3%－ 0.9pt(Millions of yen)

＋233

＋106

SG&A expenses to net sales ratio
1H FY2014 1H FY 201546.3 % ⇒ 47.5%+1.2pt－396
Actual

2,260

2,203

Initial plan

2,000
OperatingincomemarginOperatingincomemargin9.5%
Operatingincome1H FY2014(2014/8)

Operatingincomemargin8.3%
Net sales

Cost of sales

SG&A
expenses

9.2%

Operatingincome1H FY2015(2015/8)

4

Trends in Operating Income, Ordinary Income, and Net Income(Millions of yen/ %)Levels of Revenues andEarnings

1Q
FY2014

Net sales

2Q FY2014

1H FY2014(2014/8)

1Q
FY20152Q
FY2015

1H FY2015(2015/8)

Increase /(Decrease)

12,672

11,142

23,81512,306

11,742

24,048223+1.0

Gross profit

7,162

5,913

12,866

7,083

6,549

13,633767+6.0

Operating income

1,560

700

2,260

1,348

855

2,203

(57)

－2.5

Non-operating income

299

41

340

342

(129)

213

(127)

－37.4

Non-operating expenses

3

39

42

5

28

33

(8)

－20.4

Ordinary income

1,856

702

2,558

1,685

697

2,382

(176)

－6.9

Ordinary income

47

104

152

―

―

―

(152)

―

Extraordinary loss

19

80

99

13

152

165

66

+66.7

Net income before taxes

1,884

727

2,612

1,672

545

2,217

(394)

－15.1

Net income

1,184

357

1,542

1,213

169

1,383

(159)

－10.3

YoY

5

Trends in Quarterly Business Results
Steady growth in net sales; continued leveling out of operating income
Trends in Net Sales by Quarter(Millions of yen)

FY2011(2012/2)

FY2012(2013/2)

10,551

11,443

1Ｑ

2Ｑ

3Ｑ

4Ｑ

11,386

11,23911,735

1Ｑ

2Ｑ

3Ｑ

11,6184Ｑ

FY2014(2015/2)
14,543

13,876

13,738
10,959FY2013(2014/2)

1Ｑ

11,037

2Ｑ

3Ｑ

14,815
12,672

11,803

11,1424Ｑ

FY2015(2016/2)

1Q

2Ｑ

12,095

3Ｑ

12,3064Ｑ

FY2012(2013/2)

FY2013(2014/2)

FY2014(2015/2)

607

692

1Ｑ

2Ｑ

813

3Ｑ

4Ｑ

1,560

1,451
1,117

1Ｑ

843

875

2Ｑ

3Ｑ

1,091

1Ｑ

1,348

1,090

1,043

805

4Ｑ

FY2015(2016/2)
2,163

1,919
1,310

2Ｑ

(Millions of yen)

Trends in Operating Income by Quarter
FY2011(2012/2)

1Q

11,742

2Ｑ

855

700

3Ｑ

4Ｑ

1Q

2Ｑ

3Ｑ

4Ｑ

1Q

2Ｑ

6

Change in Business Segments
Building on the growth trajectory established through to the fiscal year ended
February 28, 2015, YONDOSHI HOLDINGS plans to change its business segments
effective from the fiscal year ending February 29, 2016 in order to clarify operating
management and to promote further growth.

Previous business segments

New business segments

The F.D.C. Products GroupThe Jewelry Business

The AS’TY GroupMISUZU Co., Ltd.
age Co., Ltd.

The Apparel BusinessOverview of Business Results by Segment
 The Jewelry Business Record high in both net sales and profits Successful measures implemented during fairs in the 4ºC BRIDAL business; YoY increasein business results with trends in excess of plans Robust trends at both canal 4ºC and Luria 4ºC stores; results progressing in excess ofplans due also to store network expansion+6.4%
12,656+4.7%

13,467

Net sales

2,184

+5.4%
2,283

1H FY2014
Actual Results

ActualResults(%)(Millions of yen)

1,572
1,336

Ordinary income

1H FY2015
Actual Results

1H FY2014 (2014/8)(Millions of yen, %)

2,376

2,255

Operating income

1H FY2015
1H FY2014
Actual Results Actual Results+17.7%

1H FY2014
Actual Results

Net income

1H FY2015
Actual Results

1H FY2015
1H FY2014
Actual Results Actual Results

1H FY2015 (2015/8)
Plans

ActualResults

(%)

(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

12,656100.0

12,996100.0

13,467

100.0

+6.4

+3.6

Operating income

2,184

17.3

1,995

15.4

2,283

16.7

+4.7

+14.4

Ordinary income

2,255

17.8

2,063

15.9

2,376

17.6

+5.4

+15.1

Net income

1,336

10.6

1,273

9.8

1,572

11.7

+17.7

+23.5

(Note: Figures are before accounting for intrasegment net sales and transfers)

8Overview of Business Results by Segment
 The Apparel Business Difficult trends in both net sales and profits Both net sales and profits in the apparel manufacturing and apparel SPA businesses struggled
 Steady trends in the daily fashion item business due mainly to robust results at new PALETTE
stores―5.1%
12,384― 65.6%― ¥181 million(Millions of yen)

11,757

146
Operating income (loss)

Net sales

302
Ordinary income

279
Net income (loss)

104

(42)

(34)
1H FY2014
Actual Results

1H FY2015
Actual Results

1H FY2014
Actual Results

1H FY2015
Actual Results

1H FY2014 (2014/8)(Millions of yen, %)― ¥320 million

ActualResults

1H FY2014
Actual Results

1H FY2015
Actual Results

1H FY2014
Actual Results

1H FY2015 (2015/8)

(%)

Plans

(%)

ActualResults(%)

1H FY2015
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

12,384100.0

12,273100.0

11,757

100.0

－5.1

－4.2

Operating income (loss)

146

1.2

97

0.8

(34)

―

－¥181 million－¥131 million

Ordinary income

302

2.4

222

1.8

104

0.9

－65.6

－53.2

Net income (loss)

279

2.3

52

0.4

(42)

―

－¥320 million－¥94 million

Net sales(Note: Figures are before accounting for intrasegment net sales and transfers)

9Overview of Financial Position and Cash Flows (Consolidated) Total assets, liabilities, and net assets stood at ¥59.0 billion, ¥14.7 billion,and ¥44.4 billion, respectively
 Purchased one million shares of treasury stock at an acquisition cost of ¥2.6 billion;
improved the ratio of net assets to total assets
Financial Position

Cash Flows
As of August 31, 2015

Total assets¥59.0 billion¥44.4 billion

Total liabilities Total net assets¥14.6 billion(Millions of yen)

1H FY2014 1H FY2015 Increase(2014/8)(2015/8) (Decrease)

Operatingcash flows

538

408

(129)

Investingcash flows

287

(739)

(1,027)

Financing
cash flows(590)(2,775)(2,184)Freecash flows

825

(331)

(1,156)10

Overview of the First Half of Fiscal 2015
Trends at each level of profit in excess of plans due mainly to robust results in the
Jewelry Business.
1．Jewelry Business Continued growth as a result of a variety of factors including successful efforts to

expand sales areas in line with the increase in 4ºC items and the roll out ofcomposite stores as well as other measures implemented at existing stores
Robust trends largely on the back of successful 4ºC BRIDAL initiatives
Steady progress in opening new canal 4ºC and Luria 4ºC stores helping toincrease sales
Steady progress in priority measures aimed at increasing the number of customers
Achieved an increase in revenues and record high earnings

2．Apparel BusinessDespite steady progress in the shift of production to Bangladesh by the AS’TY Groupapparel manufacturing business, the Group encountered difficulties with a drop inorders received
Also experienced a deterioration in the gross profit margin as a result of a drop in unit
selling prices at MISUZU Co., Ltd.; difficult trends in market conditions
Robust results at existing age PALETTE brand everyday fashion item stores; progress
also in expanding the number of stores
11

Status of Store Openings and Closures as well as Plans
 Undertook the opening of stores in accordance with plans in the Jewelry Business Rationalized unprofitable stores in the Apparel Business
Jewelry BusinessApparel Business

Jewelry business in Japan

FY2014(2015/2)
FY2015
1H
ActualResults(2015/8)

FY20152H Plan(2016/2)

BridalShop

Fashion
Building

Jewelrybusinessoverseas

MISUZU
Co., Ltd.

Total*

ageCo., Ltd.

Roadsidebutique

Department
store

Fiscalyearbeginning

6

90

37

60

193

6

76

77

336

Storesopened

0

4

0

7

11

0

1

2

14

Storesclosed

0

5

0

0

5

0

8

5

18

2Hend

6

89

37

67

199

6

69

74

332

Storesopened

0

2

0

10

12

0

1

3

16

Storesclosed

0

1

0

3

4

0

3

0

7

2Hend

6

90

37

74

207

6

67

77

341

(Note: Data after adjust for age Co., Ltd. sales agent stores)

Total

12

Jewelry Business― Status and Plans Regarding the Number of Domestic Brand Stores
 Increase also in jewelry stores as well as the conversion to large composite stores
 Increase in the number of stores handling bags as well as sales area expansion on
the back of an upgrade in items
4ºC

4ºC
FY2014(2015/2)

FY2015 1H
ActualResults(2015/8)

FY2015 2H
Plan(2016/2)

BRIDAL

canal 4ºC

Other*

Jewelry
Total

4ºC bags

Luria 4ºC

Bag Total

Fiscalyear-end

89

44

36

23

192

34

7

41

Stores opened

5

2

4

7

18

13

5

18

Stores closed

1

0

0

5

6

0

0

0

2H-end

93

46

40

25

204

47

12

59

Stores opened

1

1

6

2

10

6

6

12

Stores closed

0

0

2

2

4

0

0

0

2H-end

94

47

44

25

210

53

18

71

（*Other: EAUDOUCE4ºC, RUGIADA, MASION JEWELL, deux et deux, other）

13

Policy regarding the Return of Profits to Shareholders (1) With a basic stance of providing stable and continuous dividends,
YONDOSHI HOLDINGS also holds a flexible approach toward the acquisitionof treasury stock⇒ YoY increase of ¥4 per share to ¥20 share in the interim dividend for the fiscal year
ending February 29, 2016
⇒ Undertook the purchase of one million share of treasury stock in August 2015

(Millions of yen)

(%)

4,500

3,642 81.9

4,000
3,500
3,000

2,600

60

2,080

2,000

40

25.8

1,100

899

1,000
500

100
80

3,183

2,500

1,500

4,100 88.7

20

855

0

0
FY2013 (2014/2)

FY2014 (2015/2)

FY2015 (2016/2) Forecast

Net income (left axis)

Total dividends (left axis)

Total amount of treasury stock purchase (left axis)

Total payout ratio (right axis)

14Policy regarding the Return of Profits to Shareholders (2) Plans to increase the annual dividend by ¥8 per share to ¥40 per share for the
fiscal year ending February 29, 2016
 Plans to achieve a total payout ratio of 88.7% as of the end of the fiscal year underreview through the large-scale acquisition of treasury stock
FY2013 (2014/2)

FY2014 (2015/2)

FY2015 (2016/2)
Forecast

Annual dividends per share (Yen)

30

32

40

Total amount of treasury stock
purchased (Millions of yen)

－

2,080

2,600

25.8

81.9

88.7

116.40134.99154.23

Total payout ratio (%)

Net income per share (Yen)15

Ⅰ. Overview and Summary of the First Half of Fiscal 2015,
the Fiscal Year Ending February 29, 2016
Ⅱ. Business Results Forecasts for Fiscal 2015 as well as Priority
Issues and Measures for the Second
Ⅲ. Progress under the 4th Medium-Term Management Plan

16

Business Results Forecasts for Fiscal 2015
Increase in revenues and earnings; plant to record historic highs in eachof operating income, ordinary income, and net income
Net sales: ¥52,500 million (+3.5% YoY)
Ordinary income: ¥6,700 million (+7.8% YoY)

+6.1%

+3.5%
50,726

Operating income: ¥5,800 million (+6.1% YoY)
Net income: ¥4,100 million (+12.6% YoY)

52,500

5,800

5,467

Net sales
FY2014FY2015 Plan
Actual Results

Results

6,700

6,216

Operating income

Ordinary income

FY2014
Actual Results

FY2014FY2015 Plan
Actual Results

FY2015 Plan

FY2014 (201452)(Millions of yen, %)+12.6%

+7.8%

4,100

3,642

Net income
FY2014
Actual Results

FY2015 PlanYoY

FY2015 (2016/2)(%)

Initial plan（％）

Revised plan

Increase(Decrease)(%)

vs. Plan

Net sales

50,726100.0

52,500100.052,500―+3.5

Gross profit

28,93757.0

30,35057.8

30,350―+4.9

Gross profit margin57.0

Selling, general andadministrative expenses

23,46946.3

24,55046.8

24,550―+4.6

Operating income

5,467

10.8

5,800

11.0

5,800

―

+6.1

Ordinary income

6,216

12.3

6,700

12.8

6,700

―

+7.8

Net income

3,642

7.2

4,100

7.8

4,100

―

+12.6

57.8

57.8

+0.8Pt17

Full Fiscal Year Business Results Forecasts by Business Segment(Figures are before accounting for intrasegment net sales and transfers)

 The Jewelry Business is projected to generate continued growth in revenues andEarnings
 Forecast of an increase in net sales as well as profit for the full fiscal year in the
Apparel Business
FY2014(2015/2)(Millions of yen, %)FY2015(2016/2)

Results

The Jewelry
Business

The ApparelBusiness

1H Results

Full Fiscal YearYoY

Net sales

28,41013,46730,770+8.3

Operating income

5,026

2,282

5,589

+11.2

Ordinary income

5,161

2,375

5,747

+11.4

Net income

2,991

1,580

3,661

+22.4

Net sales

25,217

11,75823,732－5.9

Operating income

523

(34)

270

－48.4

Ordinary income

830

104

538

－35.2

Net income

594

(43)

245

－58.8

*1 Numerical data for the fiscal year ended February 28, 2015 has been retroactively adjusted.

18

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Existing Store Measures (1) Expand sales areas and increase sales at existing stores by upgrading andexpanding zones and items
 Upgrade and expand high zone fields through 4ºC Pregence Upgrade and expand items through the introduction of bags, purses, small leather
goods, and 4ºC Watch products(4ºC Pregence)(4ºC Bag)(4ºC Ikebukuro Tobu Store)(4ºC Yokkaichi Kintetsu Store)

19

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Existing Store Measures (2) Increase the number of stores that handle watches on a major scale from 35 as ofthe end of February 2015 to 51 as of the end of August 2015; plans to expand thenumber of stores that handle watches on a major scale to 55 as of the end of
February 2016
 Target a YoY increase in existing store net sales in the Jewelry Business for thefull fiscal year of 4.2%
(Millions of yen, %)1st Half
Jewelry Businessexisting store total

2nd Half

Plan

Actual

vs. Plan

11,713

11,776+0.5(4ºC Watch)

Full-year

YoY

Plan

YoY

Plan

＋3.0

15,401＋5.7

27,104YoY+4.2(4ºC Kyoto Daimaru Store)

20

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Large-Scale Composite Stores Building confidence in the roll out of large-scale composite stores on the back of
the successful conversion of the 4ºC GRANDUO Tachikawa Store throughrenovation last year Current roll out of five large-scale composite stores through the new opening of
one stores during the fiscal year under review and the conversion of three(4ºC GRANDUO Tachikawa Store )21

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Large-Scale Composite Stores Undertake substantial expansion of composite stores through the introduction of
4ºC products; also realize synergy effects with fashion jewelry(4ºC Meitetsu Department Store ) 22

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Store Opening Strategy
 Continue to expand canal 4ºC and Luria 4ºC stores Open new 4ºC BRIDAL stores(canal4ºC Sendai S-PAL Store )(Luria 4ºC LUMINE Ikebukuro Store )23

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Increasing the number of customers
 Product, EC, and in-store initiatives aimed at increasing the number of customers
 Respond to the growing polarization of consumption; continue to implement
measures that address demand for own use
 Continue to invest in the robust e-commerce business, which recorded YoY
growth of approximately 30% in the first half of the fiscal year ending February
29, 2016; verify operations aimed at handling bridal jewelry Recruit and assign sales staff who are capable of addressing inbound demand( 4ºC Eternal Silver)(e-commerce site: Jewelry Boutique)24

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Measures directed toward the peak Christmas season
 Also undertake TV commercials this year targeting the peak Christmas season
 Plans to undertake newspaper advertising that will help raise awareness among
men and showcase the sophisticated appeal of the 4ºC brand Develop products limited to the Christmas season; conduct Christmas fairs(4ºC brand product limited to the Christmas season)

25

Fiscal 2015 Second Half Priority Measures― Jewelry Business: 4ºC BRIDAL
 Continue to conduct fairs that proved successful during the first half Roll out products that are limited to the season through Christmas bridal fairs

26

Fiscal 2015 Second Half Priority Measures― Jewelry Business: Fostering brands

 Promote a sales channel strategy that focuses on efforts to foster the Maison
Jewell brand targeting suburban shopping centers; upgrade and expand thebrand portfolio
 Sound progress in capturing bridal demand through four Maison Jewell stores
located in suburban shopping malls Work toward fostering brands that will help drive growth under the next
medium-term management plan; fine tune the merchandising strategy basedon successful business models; consider expanding the number of newly opened
stores in the next fiscal period27

Fiscal 2015 Second Half Priority Measures― Apparel Business Apparel manufacturing: Continue the shift of production to Bangladesh; cultivate
new business partners
 Establish competitive advantage through the ongoing shift of production to
Bangladesh Promote marketing activities aimed at strengthening relationships withexisting business partners and cultivating new business partners
 Apparel SPA: Promote product proposals that clearly identify target customers
 Revitalize existing stores by bolstering event proposal capabilities
 Improve the gross profit margin by reviewing the composition of products Daily fashion: Continue to open PALETTE stores that reinforce the Group’s
dominant position in the Kansai area
 Maintain robust results by revitalizing existing stores Undertake the opening of stores in accordance with plans; plans to open five
stores for the full fiscal year by opening three stores during the second half28

Ⅰ. Overview and Summary of the First Half of Fiscal 2015,
the Fiscal Year Ending February 29, 2016
Ⅱ. Business Results Forecasts for Fiscal 2015 as well as Priority
Issues and Measures for the Second
Ⅲ. Progress under the 4th Medium-Term Management Plan

29

Basic Policies of the Fourth Medium-Term Management Plan
Period of the plan: The three-year period from the fiscal year ending February 29,
2016 to the fiscal year ending February 28, 2018

 Slogan

Challenge and Evolution
Striving to become a century-old company and brand Toward achieving the Group’s established vision
Develop human resources
Strengthen the competitiveness of products
Ascertain market trends

Basic Policies of the Fourth Medium-Term Management Plan
― Numerical Vision
Numerical Visions (FY2017)
Consolidated net sales
Ordinary income
ROE¥60.0 billion or more
¥8.0 billion or more
10.0% or more

Progressive Image of Numerical Vision Achievement ― Ordinary Income and ROE Outlook（億円）

Ordinary income

80.0¥8.0 billion
ROE
10.0%

70.0

（％）
11

10

9

¥6.21 billion
60.0

8.1%
Final fiscal year of the third
Medium-Term Management Plan

8
Final fiscal year of the fourth
Medium-Term Management Plan

50.0

7

Fiscal 2014 Results
第65期（2015／2）実績

Fiscal 2017 Forecasts
第68期（2018／2）計画

Key Measures of the Fourth Medium-Term Management Plan Pursue an aggressive store opening strategy⇒ Continue to pursue an aggressive store opening strategy; plans to open
70 new stores over the three-year period to the fiscal year ending
February 28, 2018

 Develop businesses that will play an important role in thenext set of growth strategies⇒

Expand the Luria 4ºC, e-commerce, and overseas businesses; focus ondeveloping new brands and zones

 Expand the scale of business by continuing to push forward
the Group’s six growth engine pillars⇒

Continue to drive results through the six medium- to long-term
growth engine pillars (4ºC jewelry, 4ºC BRIDAL, canal 4ºC,
apparel manufacturing, Apparel SPA, and daily fashion items)
established under the third Medium-Term Management Plan

Progress under the 4th Medium-Term Management Plan
Steadfastly implementing priority measures
Priority Strategies
Pursue an aggressive store opening strategy; plans toopen 70 new stores* over the three-year period

Develop businesses that will play
an important role in the next setof growth strategies

Expand the scale of business bycontinuing to push forward theGroup’s six growth engine pillars

Progress in the first half of the first fiscal year of the plan

14 stores as of the end of August 2015
・Opened five Luria 4ºC stores
・Took steps to verify the e-commerce handlingof bridal jewelry
・Continued to gather know-how utilizing local
subsidiary in Shanghai with the aim of
expanding stores in China
・Continued strong performance by the 4ºC
jewelry and canal 4ºC brands
・Experienced a positive turnaround on the backof successful 4ºC BRIDAL fair initiatives
・Continued to expand daily fashion PALETTE
stores33

Basic Stance regarding the Return of Profits to Shareholders

YONDOSHI HOLDINGS is looking to progressively increase
its target total payout ratio from 25% set under the 3rd
Medium-Term Management Plan to 30%

 In addition to the stable and continuous payment of dividends,
flexibly purchase treasury stock on an ongoing basis
 Cash after the return of profits to shareholders will be directed
toward investments aimed at driving internal growth as well as
M&As

Toward Stable and Sustainable Growth— Creating Sustainable Value
Work toward enhancing value in the four jewelry SPA, apparel OEM, apparel SPA,
and retail businesses
OutputInputsSustainable
GrowthShareholders
Customers

Jewelry SPA

Employees
Manufacturers

Customers
Employees

Apparel SPA

RetailPartnercompanies
Society

Shareholders

Manufacturers

Partnercompanies

Apparel OEM

Management and business platforms
The environment, society, and governance (ESG)

Society

Activities Aimed at Addressing ESG Issues― Developing Human Resources
 Establish a corporate university as a way in which to promote soundbusiness management (planned for November) Promote ongoing education through F.D.C. FRIENDS COLLEGE, a
specialized education and training facility Launch a work-life balance consideration and review project Promote and environment in which women can excel by establishing theDiversity Promotion Committee(Sales and marketing training at
F.D.C. FRIENDS COLLEGE andsales counters)

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Activities Aimed at Addressing ESG Issues― Quality
 Strengthen and invest in a robust control structure with the aim of maintaining
the value of the Group’s brands designed to ensure the safety and peace of mindof customers
 Build a control structure that delivers unprecedented levels of quality assurance
at the Sagamihara Jewelry Center Increase investment in x-ray inspection equipment, build a 100-strong quality
inspection team, and undertake the inspection of all jewelry items

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In conclusion Trends in business result for the second quarter cumulative period of the
fiscal year ending February 29, 2016 were extremely sound with both net
sales and each level of profit in excess of plans
 Revenue and earnings forecast to increase for the full fiscal year ending
February 29 2016, with record high results in operating income and net
income as well as ordinary income for an eighth and seventh consecutive
fiscal period, respectively
 ROE for the fiscal year ending February 29, 2016 projected to improve 0.9
of a percentage point to 9.0% on the back of sound business results and theacquisition of one million shares of treasury stock Focus on promote sales and promotional activities and developing limited
products targeting the peak Christmas season as a key feature during thesecond half
 Steady trends and progress in the opening of stores, cultivation of businesses,
and expansion of business scale under the 4th Medium-Term Management
Plan

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We kindly request that you direct all inquiries regarding this document and investor relations
in general to the following point of contact:

YONDOSHI HOLDINGS INC.
General Affairs Division (Kozuka)
TEL+81-3-5719-3429
FAX+81-3-5719-4462
E-mail ir-yondoshi@yondoshi.co.jp

Disclaimer: Forecasts and forward-looking statements are based on a wide range of assumptions.
YONDOSHI HOLDINSG INC. takes no responsibility for the accuracy of the information contained inthis document and does not guarantee its validity or outcome. Readers are asked to use this information
with the understanding that actual results may differ materially from estimates and forecasts.