YONDOSHI HOLDINGS INC.
Prime Market, Tokyo Stock Exchange (8008)

Investors’ Presentation
Results for the Fiscal 2021
(The Fiscal Year Ended February 28, 2022)
April 14, 2022

Contents
Ⅰ. Overview and Summary of Fiscal 2021, the Fiscal Year
Ended February 28, 2022
Ⅱ. Initiatives and Business Results Forecasts for Fiscal 2022
Ⅲ. Medium- to Long-Term Strategic Approach

Hidetoshi Masuda. 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Contents
Ⅰ. Overview and Summary of Fiscal 2021, the Fiscal Year
Ended February 28, 2022
Ⅱ. Initiatives and Business Results Forecasts for Fiscal 2022
Ⅲ. Medium- to Long-Term Strategic ApproachFiscal 2021 Operating Environment
Various initiatives including state of emergency declarations and priority measures
to prevent the spread of COVID-19 were issued throughout the period under review
amid the ongoing impact of the pandemic
 Ongoing measures to curb the flow of human traffic resulted in a slump insocioeconomic activity, which significantly impacted the Group's Jewelry
Business
 Substantial temporary decline in the number of marriages owing to theimpact of COVID-19; significant contraction in the bridal-related market
 In contrast, minimal impact on daily necessities attributable to COVID-19;
moreover, demand for one-mile wear expanded due to changes in lifestyles

While the Jewelry Business continues to face a difficult
operating environment due to COVID-19, the impact on the
Apparel Business is limited
4

Overview of Consolidated Operating Results for Fiscal 2021
 Trends in line with revisions to fiscal 2021 forecasts announced on January 6, 2022
FY2020 (2021/2)(Millions of yen, %)ActualResults

FY2021 (2022/2)
Jan. 6 Revised
Forecasts

(%)

(%)

YoY
ActualResultsvs. Jan. 6
Revised
Forecasts(Decrease) (%)

Increase(Decrease) (%)

Increase

Net sales

39,449100.0

38,300100.0

38,050

100.0

－3.5

－0.7

Gross profit

21,29454.0

20,20052.7

20,066

52.7

－5.8

－0.7

－1.3

±0

Gross profit margin54.0

Selling, general andadministrative expenses

18,52747.0

18,50048.3

18,345

48.2

－1.0

－0.8

496

1.3

496

1.3

496

1.3

±0

±0

Operating income

2,767

7.0

1,700

4.4

1,721

4.5

－37.8

+1.2

Ordinary income

3,195

8.1

2,250

5.9

2,293

6.0

－28.2

+1.9

Net income

1,622

4.1

1,400

3.7

1,490

3.9

－8.1

+6.4

Operating income before
the amortization of goodwill

3,264

8.3

2,196

5.7

2,218

5.8

－32.0

+1.0

Operating income before
the amortization of goodwill

2,118

5.4

1,896

5.0

1,987

5.2

－6.2

+4.7

Amortization of goodwill

52.7

52.7

* Operating income before the amortization of goodwill = operating income + goodwill amortization; net income before theamortization of goodwill = profit attributable to owners of parent + goodwill amortization

5Overview of Business Results by Segment～The Jewelry Business (1) Decreases in revenue and earnings in the Jewelry Business owing to the prolonged
impact of various initiatives including state of emergency declarations andpriority measures to prevent the spread of COVID-19

FY2020 (2021/2)(Millions ofyen, %)
ActualResults(%)

Net sales

20,641

100.0

Operatingincome

2,139

10.4

FY2021 (2022/2)

Jan. 6
Revised
Forecasts

YoY

vs. Jan. 6
Revised
Forecasts

Increase(Decrease)(%)

Increase(Decrease)
(%)

(%)

ActualResults(%)

18,500100.0

18,424

100.0

－10.7

－0.4

1,100

5.9

1,130

6.1

－47.2

+2.7

6

Overview of Business Results by Segment～The Jewelry Business (2) Temporary decline in the number of marriages owing to the impact of COVID-19
 Issues concerning the competitiveness of 4ºC BRIDAL specialty storesComparison of Trends between the Number of Marriages and Existing 4ºC BRIDAL Specialty Stores(Number of marriages)

700,000

Number of marriages(%)

Existing stores

110

107.8
635,225

620,707606,952
586,481600,000

599,007

100

98.5
92.4

91.9

525,50796.3

501,414500,000

90

81.6
400,000

80

71.7
300,000

70
FY2015 (2016/2)

FY2016 (2017/2)

F2017 (2018/2)

FY2018 (2019/2)

FY2019 (2020/2)

FY2020 (2021/2)

FY2021 (2022/2)

Number of marriages (Source): Recruit Bridal Research (https://souken.zexy.net/data/kk/bsouken_konninnkumisuu20220303.pdf)

7

Overview of Business Results by Segment～The Jewelry Business (3) Upswing in the number of female customers and growing confidence in an
increase in support despite normal business days being limited to two months
 Launch of two DtoC brands; positive steps toward cultivating new markets
4ºC Fashion Jewelry Sales Growth Rate by Customer Gender

FemaleFY2020

Male

2,491

Couples

3,922(Millions of yen)

2,728

(2021/2)

FY2021(2022/2)

2,780

3,411

2,571

+11.6%－13.1%－5.8%

Launch of Two DtoC Brands; Cultivating New Markets

Sustainable brand using recycled metal and laboratory-grown diamonds

Sophisticated form, well-honed line, genderless design8Overview of Business Results by Segment～The Apparel Business (1) Increase in revenue and decrease in earnings in the Apparel Business Increases in PALETTE revenue and earnings owing to the success of 25th
anniversary events, increase in memberships (373,000→410,000; up 37,000), and theopening of eight new stores each year Temporary contraction in sports- and theme park-related products in the Apparel
Manufacturing Business

FY2020 (2021/2)(Millions ofyen, %)
ActualResults(%)

Net sales

18,807100.0

Operatingincome896

4.7

FY2021 (2022/2)

Jan. 6
Revised
Forecasts

YoY

vs. Jan. 6
Revised
Forecasts

Increase(Decrease)(%)

Increase(Decrease)
(%)

(%)

ActualResults(%)

19,500100.0

19,626

100.0

+4.3

+0.6

880

4.5

889

4.5

－0.8

＋1.0
9

Overview of Business Results by Segment～The Apparel Business (2) Continued to promote a strategy aimed at entrenching the Group’s dominant position in the
Kansai area by opening new stores
 Steady progress toward the medium-term plan target of 100 stores and the establishment ofa ¥15 billion system
Trends in PALETTE Sales, Operating Margin and the Number of Stores
Sales

Operating margin

11,815(Millions of yen, %)10,715
9,430
8,333
7,433
7,090

2.7

3.3

3.6

8,914
2.2
2.0

2.1

1.0

Number ofStores

FY2015 (2016/2)

FY2016 (2017/2)

F2017 (2018/2)

FY2018 (2019/2)

FY2019 (2020/2)

FY2020 (2021/2)

FY2021 (2022/2)

58

61

65

71

73

80

88

10

Overview of Financial Position and Cash Flows(Consolidated) Total assets, liabilities, and net worth stood at ¥56.8 billion, ¥13.9 billion, and ¥42.9 billion,
respectively
 Cash flows from operating activities: Decrease in net cash provided by operating activities
owing to the absence of the income tax refund of ¥2.7 billion posted in the previous fiscalyear Cash flows from financing activities: Cash dividends paid of around ¥1.7 billion as a part ofshareholder returns
Financial Position

Cash Flows
As of February 28, 2022

Total liabilities¥13.9 billion

Total assets¥42.9 billion

Total net assets¥56.8 billion(Millions of yen)

FY2020(2021/2)

FY2021(2022/2)

Increase(Decrease)

Operating cash
flows

6,633

1,871

(4,762)

Investingcash flows(2,169)106+2,063Financing cash
flows

(2,515)(1,816)+699

Freecash flows

4,464

1,977

(2,487)11

Overview of Capital Investment as well as Depreciation
and Amortization (Consolidated)
Capital investment: ¥0.47 billion Depreciation and amortization: ¥0.83 billion

FY2020 (2021/2)

FY2021 (2022/2)(Millions of yen, %)YoY
Actual Results

Capitalinvestment

Actual Results

722

473

FY2020 (2021/2)

FY2021 (2022/2)(Millions of yen, %)YoY
Actual Results

Depreciation andamortization

(249)

1,026

Actual Results

831

(195)

12

Status of Store Openings
出退店の状況
 Jewelry Business: Decrease of four stores owing to the closure of unprofitable
operations
 Apparel Business: Eight new PALETTE brand stores opened
ApparelBusiness

Jewelry Business
Japan
Roadsidebutique

FY2020(2021/2)

Total

Department
store

Bridal Shop

Fashion
Building

PALETTE

Total

Fiscalyearend

3

71

40

61

175

80

255

Storesopened

0

0

0

1

1

8

9

Storesclosed

0

0

0

5

5

2

7

Fiscalyearend

3

71

40

57

171

86

257

FY2021
ActualResults(2022/2)

13

Status of the Number of Domestic Brand Stores in the
Jewelry Business
4ºC

4ºC

FY2020(2021/2)

FY2021 Actual
Results (2022/2)

EAU DOUCE
4℃

Canal4ºC

BRIDAL

Total

Fiscal year-end

84

40

45

14

183

Stores opened

0

0

1

0

1

Stores closed

2

0

3

0

5

Fiscal year-end

82

40

43

14

179

* Composite stores that handle multiple brands are recorded as a single store by each individual brand.

14

Contents
Ⅰ. Overview and Summary of Fiscal 2021, the Fiscal Year
Ended February 28, 2022
Ⅱ. Initiatives and Business Results Forecasts for Fiscal 2022
Ⅲ. Medium- to Long-Term Strategic Approach

Operating Environment Forecasts for Fiscal 2022 (1) Despite ongoing efforts to curb the flow of human traffic in the post-COVID-19
era, expectations that socioeconomic activities will normalize, revenge
consumption will expand, and the number of marriages will exhibit a substantial
recovery Concerns surrounding a decline in consumer confidence triggered by inflation
 Growing downward pressure on results owing to the surge in resource andmaterial prices as well as continued deterioration in the value of the yen

Despite uncertainty surrounding the future,
implement a raft of measures aimed at increasing both sales and profit margins

16

Operating Environment Forecasts for Fiscal 2022 (2)Jewelry Business Motivation toward purchasing the Company’s products based on productplanning centered on 50th anniversary brand products
 Expectations of a pickup in bridal jewelry in line the recovery in the number ofmarriages
 In light of the product attributes of jewelry, negligible impact on consumption
as a result of passing on costs to sales prices; operating focus on profitability

Apparel Business PALETTE unaffected by restrictions on the flow of human traffic; expectationof a recovery in event demand in the Apparel Manufacturing Business Offset the risk of a surge in material prices by controlling the cost of sales ratio
and reviewing pricing strategies
17Fiscal 2022 Initiatives
Jewelry Business(1) Expand female customer support(2) Engage in product planning and promotions to commemorate the 50th anniversary of the
4ºC brand(3) Strengthen the competitiveness of 4ºC BRIDAL specialty stores(4) Engage in product development that matches the attributes of Canal 4ºC station andfashion building customers(5) Renew the official site with a view to enhancing the experience value of e-commercecustomer(6) Strengthen engagement with customers in a bid to cultivate 4ºC brand fans
(7) Actively invest in store renovations

Apparel Business(1) Everyday fashion business PALETTE (age):
Increase sales through the opening new stores, growth in PALETTE memberships, andexisting store expansion(2) Apparel Manufacturing Business (the AS’TY Group):
Maintain and increase profitability by rebuilding overseas production bases
18

Jewelry Business

Expand Female Customer Support (1) Improve design and strengthen product planning capabilities
 Develop and roll out a diverse portfolio including the Noble of Water and Season
collections(4ºC Noble of Water Collection)(4ºC Spring Collection)

19

Jewelry Business

Expand Female Customer Support (2) Establish tie-ups with well-known stylists while strengthening the charm of brands
as well as appeal
 Strengthen the dissemination of information aimed at core targets• Secure top feature serial tie-ups with the
VERY and CLASSY magazines targeting
women in their 30s• Establish a special website page
• Seven features over a 12-month period:scheduled rollout between April andOctober• Promote the appeal of brands and products

20Jewelry Business

4ºC Brand 50th Anniversary
 Rollout a limited-edition 4ºC brand 50th anniversary collection

Step 1

Step 2

Step 3

Rollout April 1

Rollout July 1

Rollout October 721Jewelry Business

4ºC BRIDAL Specialty Stores: Strengthen Competitiveness (1) Rollout the new 4ºC Premium Platinum material, which boasts the industry’s highest purity
and strength standards
 Expand loose diamond handling; strengthen proposal capabilities at specialty stores

22

Jewelry Business

4ºC BRIDAL Specialty Stores: Strengthen Competitiveness (2) Increase in the number of store visit reservations by strengthening the functionsof the official website
 Strengthen marketing capabilities through staff education and training(4ºCBRIDAL official website)

23

Jewelry Business

4ºC BRIDAL Specialty Stores: Strengthen Competitiveness (3) Address the deterioration in store locations and review store designs to improvecustomer satisfaction
 Enhance the fresh appeal of stores through renovations
BeforeAfter(4ºC BRIDAL Koriyama Store)24

Jewelry Business

Canal 4ºC: Engage in Product Development That Matches
the Attributes of Station and Fashion Building Customers (1) Engage in product development targeting young female customers who are sensitive totrends and fashion
 Increase demand for purchases of products for own use among women by significantly
expanding earrings and related products as well as bracelets(Canal 4ºC earjoy) 25

Jewelry Business

Canal 4ºC: Engage in Product Development That Matches
the Attributes of Station and Fashion Building Customers (2) Push forward a unique Canal 4ºC promotion strategy using celebrities
 Initiatives included serial tie-ups with the magazine SWEET and digitalpromotions

Expand awareness through collaborations
and tie-ups with celebrities

Strengthen the dissemination of
information in a bid to increase support

Number of Instagram followers: 330,000•

Collaboration jewelry with
Rinko Murata

Top feature serial tie-up with themagazine SWEET targeting female
office workers in their 20s, serial tieups with celebrities•

Six features over a 12-month period:
on-sale between June and November

Launched on April 8, 2022 (Friday), sold out

26Jewelry Business

Full Renewal of the e-commerce Site with a View to Enhancing
the Experience Value of Customers (1) Undertook a complete renewal of the official e-commerce site in March 2022
 Improve customer convenience through a variety of measures including the
upgrade and expansion of content as well as steps to strengthen the search function(Top page after full renewal)

27Jewelry Business

Full Renewal of the e-commerce Site with a View to Enhancing
the Experience Value of Customers (2) Take up the challenge of cultivating new markets by also developing DtoC brands
in the next fiscal period

Coming Soon28

Jewelry Business

Strengthen Engagement with Customers in a Bid to Cultivate
4ºC Brand Fans
 Newly establish a designated marketing department; strengthen customer analysis andinitiative implementation capabilities
 Strengthen customer engagement in a bid to increase the repeat rate
(Thousands)

Number of memberships

600

561
478

500

423
400

372
327

300

245
183

200

100

100

124

21
0
3Q

4Q

FY20191Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2021

4Q

29

Jewelry Business

Actively Invest in Store Renovations
 Plans to renovate and refurbish 15 4ºC, 10 4ºC BRIDAL, and five Canal 4ºC stores for a totalof 30 stores
 Working to increase the appeal of stores and the ability to attract customers through theeffects of renovations(Koshigaya Lake Town CA Store)( Iwataya Main Store New Building J Store)(Kitasenju Marui CA Store)(Abeno Harukas Kintetsu Department Store Main Store J Store)30

Apparel Business

Expand Sales by Opening PALETTE stores Promote a strategy that helps entrench the Group’s dominant position in the Kansai area;plans to open 10 new stores during fiscal 2022
 Commence the opening of stores in the Kanto region
 Expand PALETTE memberships and promote existing store growth (410,000→450,000)
PALETTE store opening area in the Kansai area

Kansai dominant
strategy promotion area

(PALETTE Hirohata Store) 31

Apparel BusinessApparel Manufacturing Business: Reestablish
an Overseas Supply Chain
 Shift a portion of production in China to Bangladesh and bags to Vietnam in
response to the projected surge in resource prices
 Recovery in the handling of sports- and theme park-related items; work to secure
growth in sales and profit by improving uniform profitability
Apparel Manufacturing Supply Chain Map

China: deep China area

China: Guangzhou area

China: Shanghai area
Dhaka Office,Bangladesh

Ho Chi Minh area32

Consolidated Business Results Forecasts for Fiscal 2022 (1) Increase in revenue and upswing in earnings forecast for fiscal 2022 on the back of arecovery in the Jewelry Business and further opening of PALETTE stores; net sales andoperating income projected to come in at ¥41.5 billion and ¥2.7 billion, respectively(Millions of yen)

Net sales

Operating income

Ordinary income

Net income

41,50038,050

2,700

+9.1%

FY2021
ActualResults

FY2022
Results
Forecast+56.8%FY2021
ActualResults

3,000
1,490

2,293

1,721

FY2022
Results
Forecast

1,800+30.8%FY2021
ActualResults

FY2022
Results
Forecast+20.8%FY2021
ActualResults

FY2022
Results
Forecast

33

Consolidated Business Results Forecasts for Fiscal 2022 (2)FY2021 (2022/2)(Millions of yen, %)FY2022 (2023/2)（％）

Results

Full-year
forecasts

YoY（％）

Increase(Decrease) (%)

Net sales

38,050100.041,500

100.0

+9.1

Gross profit

20,06652.7

22,00053.0+9.6

Gross profit margin52.7

Selling, general andadministrative expenses

18,34548.2

19,300

46.5+5.2

Amortization of
goodwill

496

1.3

496

1.2

±0

Operating income

1,721

4.5

2,700

6.5

+56.8

Ordinary income

2,293

6.0

3,000

7.2

+30.8

Net income

1,490

3.8

1,800

4.3

+20.8

≪ Reference ≫53.0

FY2021 (2022/2)+0.3

FY2022 (2023/2)

YoY

Operating income before
the amortization of
goodwill

2,218

5.8

3,196

7.7

+44.1

Net income before theamortization of goodwill

1,987

5.0

2,296

5.5

+15.6

* Operating income before the amortization of goodwill = operating income + goodwill amortization; net income before theamortization of goodwill = profit attributable to owners of parent + goodwill amortization

34

Consolidated Business Results Forecasts by Segment for Fiscal 2022
(Figures are after accounting for intrasegment net sales and transfers)

Jewelry Business
New sales and operating income estimated to come in at ¥20.5 billion and ¥1.9 billion,
respectively
 Projecting a return to sales growth through various activities centered on 50th anniversary
4ºC brand products and a positive turnaround in bridal jewelry
 Little resistance to passing on costs to sales prices; confidence in maintaining a high-profit
structure

Apparel Business
New sales and operating income estimated to come in at ¥21.0 billion and ¥1.0 billion,
respectively
 Projecting sales growth on the back of PALETTE store expansion and a recovery in Apparel
Manufacturing Business operations
 Work toward improving profit margins by reviewing pricing strategies and controlling
logistics overhead expenses amid the forecast surge in cost of sales
FY2021 (2022/2)(Millions of yen, %)Jewelry BusinessApparel Business

ActualFY2022 (2023/2)
Forecast

YoY

Net sales

18,42420,500+11.3

Operating income

1,130

1,900

+68.1

Net sales

19,62621,000

+7.0

889

1,000

+12.5

Operating income

35Plans for Store Openings and Closures
 Jewelry Business: Implement a scrap and build strategy; plans for a net increase of two
stores Apparel Business: Plan to open 10 PALETTE stores Actively plan relocations, renovations, and refurbishments in the Jewelry BusinessApparelBusiness

Jewelry Business
Japan
Roadsidebutique

FY2021
ActualResults(2022/2)

FY2022
Forecast

Total

Department
store

Bridal Shop

Fashion
Building

PALETTE

Total

Fiscalyearend

3

71

40

57

171

86

257

Storesopened

0

2

1

6

9

10

19

Storesclosed

0

2

1

4

7

1

8

Fiscalyearend

3

71

40

59

173

95

268

(2023/2)

36

Plans for the Number of Domestic Brand Storesin the Jewelry Business
4ºC
BRIDAL

4ºC

FY2021Actual
Results (2022/2)

FY2022 Forecast(2023/2)EAU DOUCE
4ºC

Canal 4ºC

Total

Fiscal year-end

82

40

43

14

179

Stores opened

4

1

4

0

9

Stores closed

2

1

4

0

7

Fiscal year-end

84

40

43

14

181

* Composite stores that handle multiple brands are recorded as a single store by each individual brand.
* Refers to the internal relocation of two stores within 4ºC store openings/closings, one store within 4ºC BRIDAL store
openings/closings and one store within Canal4ºC store openings/closings.

37

Shareholder Returns Policy, Cash DividendsWork to raise the level of shareholder returns through the payment of stable and continuous cash dividends
and expeditious repurchase of own shares
Shareholder return target: Dividend on equity (DOE) ratio of 4% or moreWork to realize a future annual cash dividend of ¥100 per common share DOE projected to come in at 4.3% on an annual cash dividend of ¥83 per share, up ¥2 per share YoY
for fiscal 2021 (eleventh consecutive fiscal year of cash dividend growth) Plans to pay an annual cash dividend of ¥83 per share in fiscal 2022
DOE (Dividend on Equity)
(%)

5
4
3

4.3

4.5

4.4

20.2

21.2

4.3

4.3

2.8

2
1
0

（％）
Annual dividends per share (Yen)DOE (Dividend on equity) (*1)

Payout ratio (%)

18.2

19.2

FY2017(2018/2)

65
2.8
31.4
28.7

FY2018(2019/2)

75
4.3
78.1
64.9

22.2 (Forecast) 23.2 (Forecast)

FY2019(2020/2)

80
4.5
71.3
69.2

FY2020(2021/2)

81
4.4
108.0
82.7

Actual dividend payout ratio (*2)
*1 DOE (Dividend on Equity) = Total dividends ÷ Shareholders' equity*2 Actual dividend payout ratio: Total annual dividends / Net income before amortization of goodwill

FY2021(2022/2)
Forecast

83
4.3
119.3
89.5

FY2022(2023/2)
Forecast

83
4.3
98.8
77.8
38

Contents
Ⅰ. Overview and Summary of Fiscal 2021, the Fiscal Year
Ended February 28, 2022
Ⅱ. Initiatives and Business Results Forecasts for Fiscal 2022
Ⅲ. Medium- to Long-Term Strategic Approach

Medium- to Long-Term Strategic Approach
Impact of various external factors; high uncertainty regarding the future

Toward postponing rolling numerical targets of the Sixth Medium-Term
Management Plan
Continuation of measure under the
Medium-Term Management Plan
Focus on improving brand value and strengthening profitability in the Jewelry Business
Expand the top line through Apparel Business growth

Work to improve analytical capabilities and the ability to promote measures
to secure an early recovery in the highly profitable Jewelry Business40

Jewelry Business Recovery Scenario (1)4ºC brand competitive advantage
High brand profile

Strong in addressing the need formen’s gifts

Nationwide store network
Changes in the market environment Shrinking need for men’s gifts owing to COVID-19
 Shrinking mass market and increased diversity on consumer
values Brick and mortar and online integration owing to digitization

Shrinking need for men’s gifts, which has historically served as a strength
Signs of a shift in points of customer contact owing to digitization
41

Jewelry Business Recovery Scenario (2)Shift in business strategies in response to changes in the market;
work toward expansion in growth fields
Growth fields

Female customer expansion

e-commerce expansion

Improvement in the ability to capture newcustomers as well as the repeat rate

Female and consumer values toward jewelry
4ºC brand sophistication and product competitivenessMarketing and promotion strategy
42Jewelry Business Recovery Scenario (3)Toward further expanding demand based on growing support from female customers

Female customer
supportFans

Collection

From parents to children

Men’s gifts

Coordinate product proposals

Anniversaries

Bridal Jewelry

Baby’s Collection

43Medium- to Long-Term Approach:
Implement Growth Investments
Undertake various investments geared toward sustainable growth byleveraging the Company’s solid financial base(1) Brand value enhancement and marketing investment
Continue to engage in advertising and sales promotion activities with a view tofurther lifting customers’ favorable impression of the Group’s products(2) Store opening investment
Undertale investment aimed at PALETTE growth and building a robust
business portfolio(3) System and DX investment
Address the transition to a digital society and changes in the environment(4) Human resources investment
Strengthen human capital for the sustainable enhancement of corporate value
44Medium- to Long-Term Approach:
Human Resources Investment
Undertake investments in human resources in a bid to ensure corporate sustainability
 Establish a systematic education system; identify skills and mindsets by level Invest in the education and training of young directors as well as candidates for the position of
director and female executives
Engage in the proactive development of the next generation of managers
YONDOSHI HOLDINGS EDUCATION AND TRAINING SYSTEM

Young managers roundtable
Advanced school
Women’s career development support
program

Improve specialized skills
that enhance business value

Young managers roundtable
Advanced school
Women’s career development
support program

ま
っ
と
う
な
経
営
塾

Train
examiners
Coaching
BusinessschoolMarketingFashion trends

Young
Employees (1-5years’ service)

Develop the next generationof leaders

Change in the Company’s
cultureManagers

Enhance business value

Diversity

GeneralManagers

Foster a corporate culture

Corporate university

Directors

Train management personnel

DX

45

Toward Stable and Continuous Growth～Creating Sustainable Value
Work toward enhancing value in the three jewelry SPA, apparel ODM, andretail businesses
VisionInputsBusinesses

Outputs

Customers

Jewelry SPA

Customers

Employees

Employees

Manufacturers

Manufacturers

Partnercompanies

Apparel OEM

RetailPartnercompanies
SocietySocietyEnhanced corporate value;
increased customer satisfaction

A century-old company and brandShareholders

Shareholders

Outcomes

Management and business platforms
The environment, society, and governance (ESG)46

Promote Sustainable Management (1)Promote sustainable management
Work toward realizing a sustainable society as well as corporate
sustainability and growth

Formulate a basic sustainability policy
Formulated as a policy to contribute to the realization of a sustainable society through corporate activities

Environment policy

Human rights policy

 Contribute to building a decarbonized andrecycling-oriented society Comply with all laws and regulations

 Abolish all forms of discrimination and harassment
 Eliminate forced as well as child labor and humantrafficking
 Avoid complicity in human rights abuses
 Take into consideration the workplace environment
 Respect employees’ basic rights

Procurement policy

Human resources policy Engage in fair, equitable, and transparent
transactions
 Comply with all laws and regulations
 Take into consideration human and labor rights
 Take into consideration the environment Promote mutual prosperity with business
partners

 Provide support in developing thecapabilities of human resources and careerplanning through training and education
 Promote diversity
47

Promote Sustainable Management (2)Established the Sustainability Committee
The Committee deliberates on important matters as they relate to sustainable management including
human rights and environmental issues
The Committee sets sustainability goals, confirms the status of initiatives, and considers
countermeasures

Initiate efforts to disclose information on climate change in line with therecommendations put forward under the TCFD framework
Upstream(1)Rawmaterials

Reporting company

Downstream(7)Employee
commuting(4)Transportation and delivery* Other: (2) Capital goods, (3) Fuel and energy
related activities not included in Scope 1 or 2;(5) Waste generated in operations, (6) Businesstravel, (8) Leased assets

Fuelcombustion

Electricity
consumption(11)Use ofsold products(12) End-of-life
treatment of soldproducts* Other: (9) Transportation and delivery; (10)Processing of sold products; (13) Leased assets;(14) Franchises; (15) Investments

Source: Japan’s Environment Agency homepage（https://www.env.go.jp/earth/ondanka/supply_chain/gvc/estimate_tool.html#no00）

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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.
Corporate Planning Department (Fukuhara)
TEL+81-3-5719-3295
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.