CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
NINE-MONTH PERIOD OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2017
(March 1, 2016 to November 30, 2016)
January 6, 2017
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code
number 8008.
Representative:
Inquiries:

Hidenori Suzuki, President and Representative Director
Masahiko Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): January 13, 2017
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 2016
(March 1, 2016 to November 30, 2016)(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％

Millions of yen

％

4,784

24.8

3,103

35.5

3,832

0.3

2,291

(0.3)

FY201634,477
(5.0)
3,965
17.5
Nine-Month Period
FY201536,299
1.1
3,376
2.2
Nine-Month Period
Note: Comprehensive income 3Q FY2016: 3,451 million yen (32.8%)
3Q FY2015: 2,598 million yen (-4.5%)
Net Income
per Share

FY2016Nine-Month Period
FY2015Nine-Month Period

Net Income per
Share after Dilution
Yen

Yen

120.68120.56

87.03

86.86

(2) Consolidated Financial Position
Net Assets to Total
AssetsNet Assets per Share%Yen

46,75176.3

1,830.83

60,57645,237
February 29, 2016
(Reference)
Shareholders’ equity: November 30, 2016: 46,647 million yen
February 29, 2016: 45,168 million yen

74.6

1,747.62

Total Assets

Net Assets

Millions of yen

November 30, 2016

Millions of yen

61,173

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2015
Fiscal 2016
Fiscal 2017
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

20.00
25.00

—
—

20.00

40.00

25.00

50.00

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, 2017
(March 1, 2016 to February 28, 2017)(% 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,
201751,500%(2.6)

Millions of yen

%

6,550

7.1

Millions of yen

7,700

%

12.3

Millions of yen

4,950

%

Yen

15.7

192.46

Note: 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): Yes
New: —
Excluded: 1 (Company name: MISUZU Co., Ltd.)
Note: For more detailed information, please see the section “2. Matters Concerning Summary
Information (Notes) (1) Changes in Significant Subsidiaries during the Subject Period” onpage 5.
(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: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
November 30, 2016: 29,331,356 sharesFeb. 29, 2016: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
November 30, 2016: 3,852,614 sharesFeb. 29, 2016: 3,485,424 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2016 Nine-Month Period: 25,719,874 shares
FY2015 Nine-Month Period: 26,328,828 shares
The number of recorded treasury stock is inclusive of 145,400 of the Company’s shares held by
the YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust Account as ofthe end of the quarterly fiscal period.
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the nine-month period of fiscal 2016 is not subject to the quarterly review
procedures stipulated in the Financial Instruments and Exchange Act of Japan. As of the date of disclosureof this report, the review procedures for the quarterly financial statements under the Financial Instruments
and Exchange Act had not been completed.
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
based on 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 “Explanationof Consolidated Results Forecasts and Other Future Predictions” on page 5.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

4(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Matters Concerning Summary Information (Notes)

5(1)Changes in Important Subsidiaries during the Subject Period

5(2)Application of Special Accounting Practices in the Preparation of the Quarterly

5

Consolidated Financial Statements

3.

(3)

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

5(4)Additional Information

5

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income

Third Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income(3)

Third Quarter Cumulative

8
9

Notes to Consolidated Quarterly Financial Statements

10(Notes Regarding Going Concern Assumptions)10(Notes Regarding Substantial Changes in Shareholders’ Equity)

10(Segment Information)

10

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the third quarter cumulative period of the fiscal year ending February 2017 (March 1, 2015 toNovember 30, 2016), the economic outlook in Japan remained uncertain as a result of sluggish personal
consumption, rapid fluctuation in exchange rates, the Brexit issue, the impact of the U.S. presidential
election, and concerns over economic slowdown in China and other emerging markets.
In the retail industry, business conditions remained harsh, with consumption declining amid
persistent budget-consciousness and a slowdown in inbound demand.
Under these circumstances, during the fiscal year ending February 28, 2017, the second year of the
fourth medium-term management plan, the YONDOSHI HOLDINGS Group continued to cultivate
human resources, bolster product capabilities, and assess market trends, with the aim of becoming a
century-old company and brand. Further, we pursued CSR-based management in an effort to become ahighly trusted corporate group, and worked to enhance enterprise value by strengthening internal
controls, providing shareholder returns, and making medium to long-term investments linked toearnings growth.
As a result, net sales for the subject third quarter cumulative period amounted to ¥34,477 million(down 5.0% YoY), with operating income of ¥3,965 million (up 17.5%), ordinary income of ¥4,784
million (up 24.8%), and profit attributable to owners of parent of ¥3,103 million (up 35.5%).
Of note, for a third quarter cumulative period, operating income and ordinary income reached record
highs for a sixth consecutive year, with profit attributable to owners of parent also reaching a record
high.
Operating results by business segment were as follows.

Jewelry BusinessAt the F.D.C. Products Group, sales at mainstay 4°C brand jewelry stores rose steadily, mainly as aresult of expansion in the range of items and zones following renovation of existing locations. We
continued with measures for the proactive opening of new store locations, centered on canal 4°C andLuria 4°C stores, and opened integrated and adjacent shops to utilize brand mix synergies. Performance
was also driven by the ecommerce business, which continues to record double-digit growth year onyear.
As a result, net sales in the Jewelry Business segment amounted to ¥21,856 million (up 6.6% YoY),
with operating income of ¥3,500 million (up 5.3%). Segment sales reached a record high for a fifth
consecutive fiscal period, and operating income for a seventh consecutive period.
Apparel Business
The AS’TY Group posted positive results on successful efforts to strengthen measures with majorclients utilizing its planning capabilities and production framework. Subsidiary age Co., Ltd. achieved
positive returns by opening new locations of its mainstay everyday fashion brand PALETTE, and bystrengthening sales promotion activities and its product lineup. Of note, MISUZU Co., Ltd. wasremoved from the scope of consolidation from the subject fiscal year, following the transfer of stock.
As a result, net sales in the Apparel Business segment amounted to ¥12,620 million (down 20.1%
YoY), with operating income of ¥540 million (up 349.5%).
(2) Explanation of Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of the subject third quarter cumulative period (November 30, 2016) amounted to¥61,173 million, an increase of ¥596 million compared with the end of the previous fiscal year
(February 29, 2016). This was due mainly to an increase of ¥1,986 million in merchandise and finishedgoods; against a decrease of ¥1,170 million in cash and deposits.
Total liabilities amounted to ¥14,421 million, a decrease of ¥917 million compared with the end of
the previous fiscal year. This was due mainly to a decrease of ¥1,209 million in income taxes payable;
against an increase of ¥1,124 million in notes and accounts payable—trade.
Total net assets amounted to ¥46,751 million, an increase of ¥1,514 million compared with the endof the previous fiscal year.

-4-(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 11, 2016.

2. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Subject Period
As announced in “Notice of Transfer of Subsidiary (Share Transfer)”dated April 11, 2016 and “Noticeof Share Transfer Agreement” dated April 28, 2016, MISUZU Co., Ltd., which was a consolidated
subsidiary at the end of the previous fiscal year, was removed from the scope of consolidation from thefirst quarter period of the subject fiscal year, following the sale of all shares held by the Company on
April 28, 2016.
(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
Changes in accounting policies(Application of Accounting Standard for Business Combinations, etc.)
The Company has applied “Revised Accounting Standard for Business Combinations” (AccountingStandards Board of Japan (ASBJ) Statement No. 21, September 13, 2013), “Revised AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013) and“Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013),
from the subject first quarter period, changing its presentation of net income, and changing thepresentation of “minority interests” to “non-controlling interests.” The consolidated financial statements
for the previous fiscal year have been recombined to reflect these changes in presentation.
(Change in Depreciation Method for Property, Plant, and Equipment)
The Company and its consolidated subsidiaries, in accordance with revisions to corporate tax law, forbuildings and accompanying facilities and structures acquired from April 1, 2016, from the subject firstquarter period have changed the depreciation method from the declining balance method to the straightline method.
The effect of these changes on the Company’s consolidated profit and loss in the subject third
quarter cumulative period of the fiscal year is negligible.
(4) 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
YONDOSHI HOLDINGS Employees’ Shareholding Association (“the Shareholding Association”) andsatisfy certain requirements. The trust acquires Company stock in an amount expected to be procuredby 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 the share price, the funds are distributed to the employee beneficiaries in proportion totheir contribution. If a loss is incurred due to a decline in the share price, and debt pertaining to the trust
property remains, in accordance with the guarantee article in the loan agreement the Company willdischarge 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 tothe trust (excluding ancillary expenses). At the end of the subject third quarter period of the fiscal year,
the book value of the subject treasury shares was ¥401,313 thousand, for 145,400 shares.
iii. Book value of debt recorded through application of the gross method¥427,880 thousand at the end of the subject first half of the fiscal year-5-

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

End of the Third Quarter ofFebruary 29, 2016

the Fiscal Year Ending(As of February 29, 2016)

February 28, 2017
(As of November 30, 2016)

ASSETS
Current assets:
Cash and deposits

2,145,844

975,274

Notes and accounts receivable ― trade

3,671,116

4,002,911

Short-term investment securities

3,140,000

900,000

Merchandise and finished goods

7,612,167

9,598,370

Work in process

746,972

649,077

Raw materials and supplies

702,663

773,082

Other current assets

895,776

1,329,066

Allowance for doubtful accounts(11,940)(2,334)18,902,600

18,225,447

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

6,028,177

5,868,258

Land

5,528,465

5,492,215

Other, net

1,102,278

1,034,389

Total property, plant and equipment

12,658,921

12,394,863

5,213,301

4,840,922

Intangible assets:
Goodwill
Other intangible assets

374,273258,248

Total intangible assets

5,587,575

5,099,171

18,490,635

20,912,527

Investments and other assets:
Investment securities
Net defined benefit asset
Other391,765

420,0024,659,029

4,229,191

Allowance for doubtful accounts(114,219)(108,150)

Total investments and other assets

23,427,211

24,453,570

Total noncurrent assets
Total assets-6-

41,673,708

42,947,605

60,576,308

61,173,053

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 29, 2016

the Fiscal Year Ending(As of February 29, 2016)

February 28, 2017
(As of November 30, 2016)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

4,289,341

Income taxes payable

1,545,501

335,924

Provision for bonuses

528,148

483,072

Provision for directors' bonuses

56,60047,109Asset retirement obligations

13,391

5,665

Other

3,897,039

3,563,989

Total current liabilities

10,330,022

9,849,839

5,414,078

Noncurrent liabilities:
Long-term loans payable

478,810427,880

Provision for directors' retirement benefits

433,131368,567

Net defined benefit liability

669,081542,032

Asset retirement obligations

1,040,972

971,440

Other

2,386,467

2,261,331

Total noncurrent liabilities
Total liabilities

5,008,462

4,471,252

15,338,485

14,421,091

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,146,513

18,146,140

Retained earnings

29,958,714

31,868,543

Treasury stock(5,768,298)(6,546,754)

Total shareholders’ equity

44,823,450

45,954,449

Valuation difference on available-for-sale securities

810,524

1,082,711

Deferred gains or losses on hedges(34,981)

36,777

Revaluation reserve for land(158,063)(168,478)

Other accumulated comprehensive income:

Foreign currency translation adjustments

81,16735,517

Remeasurements of defined benefit plans(353,371)(293,676)

Total other accumulated comprehensive income

345,275

692,851

69,097

104,660

45,237,823

46,751,961

60,576,308

61,173,053

Subscription rights to shares
Total net assets
Total liabilities and net assets-7-

(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 29, 2016

February 28, 2017

(March 1, 2015 to(March 1, 2016 toNovember 30, 2015)

November 30, 2016)

Net sales

36,299,850

34,477,000

Cost of Sales

15,475,626

14,242,401

Gross profit

20,824,224

20,234,599

Selling, general and administrative expenses

17,448,212

16,269,321

Operating income

3,376,011

3,965,277

Non-operating income
Interest income

12,055

13,509Dividends received
Equity in earnings of affiliates

55,57657,739278,677

704,238

Rent of real estate for investment

70,36554,855

Foreign exchange gains

12,441―

Other

68,18325,138

Total non-operating income

497,300

855,480

Non-operating expenses
Interest expenses

157

182

4,426

3,523

Management cost for real estate for investment

1,534

1,534

Commission for purchase of treasury shares

25,194833―

22,520Depreciation of real estate for investment

Foreign exchange losses
Other

9,424

8,120

Total non-operating expenses

40,73836,715

3,832,573

4,784,042――

23,400Ordinary income
Extraordinary income
Settlement received
Total extraordinary income

23,400Extraordinary loss
Impairment loss

151,465

45,824―

Loss on closing of stores

6,359

493,781
17,000

Building demolition costs

24,372―

Loss on sales of shares of subsidiaries and associates―

13,658

Total extraordinary losses

182,197570,264

Net income before income taxes

3,650,376

4,237,178

Income taxes ― current

1,289,597

1,392,252

Income taxes ― deferred

69,329(258,982)

Total income taxes

1,358,926

1,133,270

Net income

2,291,449

3,103,907

Profit attributable to owners of parent

2,291,449

3,103,907

Loss on valuation of investment securities-8-

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 29, 2016

February 28, 2017

(March 1, 2015 to(March 1, 2016 toNovember 30, 2015)

November 30, 2016)

2,291,449

3,103,907

Other valuation difference on available-for-sale securities

176,074

214,488

Deferred gains or losses on hedges
Foreign currency translation adjustments(6,082)70,30375,412(10,415)

Other comprehensive income

Revaluation reserve for landRemeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income

311(45,649)

13,97948,01347,277

70,833306,9732,598,423

347,575
3,451,483

2,598,423

3,451,483――

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-9-(3) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable

Ⅰ(Segment Information)
The nine-month period of the fiscal year ended February 29, 2016
(March 1, 2015 to November 30, 2015)
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

20,505,360

15,794,490

36,299,850―

36,299,850

35,710661,073

696,784(696,784)―

20,541,070

16,455,563

36,996,634(696,784)

36,299,850

3,325,272

120,274

3,445,546(69,534)

3,376,011

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income or loss

Notes:
1. The adjustment amount of minus ¥69,534 thousand for segment income or loss mainly includes corporate expenses thatare not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income or loss 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, 2017
(March 1, 2016 to November 30, 2016)
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

21,856,236

12,620,763

34,477,000―

34,477,000

21,400690,777

712,177(712,177)

―

Total

21,877,636

13,311,541

35,189,177(712,177)

34,477,000

Segment income

3,500,634

540,577

4,041,211(75,933)

3,965,277

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥75,933 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.

- 10 -

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.

- 11 -