CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2014
(March 1, 2013 to August 31, 2013)
October 7, 2013
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code
number 8008.
Representative:

Hidenori Suzuki, President and Representative Director

Inquiries:

Masahiko Nishimura, Director and General Manager Operations Dept.

Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 15, 2013
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for institutional investors and security analysts)
Dividend payment commencement date (planned): November 8, 2013
(Millions of yen rounded down)

1. Consolidated Operating Results for First Half of Fiscal 2013
(March 1, 2013 to August 31, 2013)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Operating Revenues
Operating Income
Ordinary Income
Net Income
Millions of yen％

FY2013 First Half

22,6550.1

FY2012 First Half

22,625

5.2％

Millions of yen％

Millions of yen

％

1,896

(3.3)

2,263

(1.5)

1,297

23.9

1,961

50.8

2,296

61.5

1,047

86.5

Millions of yen

Note: Comprehensive income FY2013 First Half: 1,561 million yen (84.6%) FY2012 First Half: 845 million
yen (81.6%)
Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

FY2013 First Half

47.52

47.44

FY2012 First Half

38.18

—

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

55,584

42,489August 31, 2013

Net Assets to Total
AssetsNet Assets per Share

%

Yen

76.4

1,551.68

February 28, 201353,295
41,10677.1
1,509.31(Reference)
Shareholders’ equity: August 31, 2013: 42,480 million yen
February 28, 2013: 41,086 million yen

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2012
Fiscal 2013
Fiscal 2014
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

10.50
12.50

—

11.50

22.00

—

12.50

25.00

Note: Revision to dividend forecast for the second quarter of the fiscal year ending February 28, 2014: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2014
(March 1, 2013 to February 28, 2014)(% figures for the full fiscal year represent year-on-year increase or decrease)
Net Income
Operating Income
Ordinary Income
Net Income
per Share

Net Sales
Millions of yen

Fiscal year
endingFebruary 28,
2014

50,000%

3.7

Millions of yen

%

4,750

10.7

Millions of yen

5,400

%

10.6

Millions of yen

3,050

%

Yen

9.5

111.67

Note: Revisions to consolidated operating forecasts for the second quarter of the fiscal year ending February 28,
2014: No

Notes
(1) Changes in Important Subsidiaries during the Period: No(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: Yes
4) Retrospective restatement: No
Note: These are subject to Article 10-5 of the Ordinance on Terminology, Forms and Preparation
Methods of Quarterly Financial Statements. For more detailed information, please see thesection “2. Summary Information (Notes)” on page 5.
(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
August 31, 2013: 29,331,356 sharesFeb. 28, 2013: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2013: 1,954,054 sharesFeb. 28, 2013: 2,109,450 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2013 First Half: 27,312,913 shares
FY2012 First Half: 27,444,092 shares
Note: The number of recorded treasury stock is inclusive of 188,200 of the Company’s shares
held by the F&A Aqua Holdings Employees’ Shareholding Association Trust Account as ofthe end of the quarterly period.
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the first half of fiscal 2013 is not subject to the quarterly review procedures
stipulated in the Financial Instruments and Exchange Act of Japan. As of the date of disclosure of thisreport, the review procedures for the quarterly financial statements under the Financial Instruments andExchange 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 “Qualitative
Information Regarding Forecasts of Consolidated Business Results” on page 5.

-2-

Contents
1.

2.

Qualitative Information Regarding Consolidated Quarterly Business Results

4(1)

Qualitative Information Regarding Consolidated Operating Results

4(2)

Qualitative Information Regarding Consolidated Financial Position

4(3)

Qualitative Information Regarding Forecasts of Consolidated Business Results5

Summary Information (Notes)

5(1)Changes in Important Subsidiaries During the 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

6

Consolidated Quarterly Financial Statements

7(1)

Consolidated Quarterly Balance Sheets

7(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

9Comprehensive Income
Consolidated Quarterly Statements of Income

Second Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income

Second Quarter Cumulative

9
10

(3)

Consolidated Quarterly Statements of Cash Flows

11

(4)

Notes Regarding Going Concern Assumptions

12

(5)

Notes Regarding Substantial Changes in Shareholders’ Equity

12

(6)

Segment Information

12

-3-

1. Qualitative Information Regarding Consolidated Quarterly Business Results(1) Qualitative Information Regarding Consolidated Operating Results
During the first half (March 1, 2013 to August 31, 2013) of fiscal 2013, the fiscal year ending February 28,
2014, signs of a positive turnaround in the Japanese economy began to emerge. Despite continued
uncertainty surrounding future economic trends due to the impact of such factors as the weak European
economy and a slowdown in the rates of economic growth in developing countries, this initial sense of arecovery was largely attributable to the positive flow-on effects of the government’s economic andfinancial policy measures, corrections to the robust yen, and an upswing in stock market prices.
The retail industry continued to suffer under a harsh operating environment. While the outlook
for certain areas appeared bright on the back of strong sales of high-priced items due to the wealth effectand other factors, personal consumption fell short of a full-fledged recovery.
Under these circumstances, the YONDOSHI HOLDINGS Group is working diligently toenhance its corporate value by practicing CSR-based management in a bid to become a highly trusted
corporate group, strengthening internal controls, providing returns to shareholders, and making longer term
investments linked to earnings growth throughout fiscal 2013, the second year of its third Medium-Term
Management Plan. Effective September 1, 2013, the decision was made to change the Company’s name to
YONDOSHI HOLDINGS INC. in order to position the Company and Group ever closer to its customers.
As a result, the Group’s performance for the first half of the fiscal year under review wasessentially in line with plans. Operating revenues edged up 0.1% compared with the same period of theprevious fiscal year to ¥22,655 million. Operating income was ¥1,896 million (down 3.3% year on year).
Ordinary income came to ¥2,263 million (down 1.5% year on year) and net income amounted to ¥1,297
million (up 23.9% year on year).
On this basis, net income again hit a new record high for the first half period.
Note: Operating revenues are the sum total of net sales and other operating revenues.
Operating results by business segment were as follows.
The F.D.C. Products GroupThe F.D.C. Products group’s 4ºC brand fashion jewelry performed solidly during the period under review.
At the same time, the group took aggressive steps to expand its 4ºC BRIDAL and canal 4ºC store network.
As a result, sales and operating income exceeded levels recorded in the same period of the previous fiscal
year.
Accounting for these factors, operating revenues amounted to ¥11,148 million (up 3.3% from thesame period of the previous fiscal year). Operating income totaled ¥1,718 million, (up 6.1%).
The AS’TY GroupThe AS’TY group worked diligently to strengthen its project planning capabilities in its apparel
manufacturing business while at the same time engaging in sales activities. Despite these efforts, sales andoperating income were down compared with the same period of the previous fiscal year owing mainly to anincrease in the cost of goods sold reflecting a downturn in the value of the yen and cutbacks in subsidiarybusinesses.
As a result, operating revenues came to ¥4,859 million (down 8.0% from the same period of theprevious fiscal year). Operating income was ¥325 million (down 29.6%).
MISUZUMISUZU Co., Ltd. experienced a year-on-year drop in sales and operating income. Despite aggressive
sales and promotional activities as well as efforts to strengthen individual products items, this decrease waslargely attributable to sluggish consumption during the summer sale period.
As a result, segment operating revenues amounted to ¥2,869 million, (down 2.1% from the same
period of the previous fiscal year). In the first half of fiscal 2013, MISUZU incurred an operating loss of¥89 million compared with operating income of ¥1 million for the same period of the previous fiscal year
-4-

age
age Co., Ltd. posted a year-on-year increase in sales due to the solid performance of its mainstay everyday
fashion brand PALLET. Operating income, on the other hand, was down year on year.
As a result, segment operating revenues amounted to ¥3,778 million (up 4.5% from the same
period of the previous fiscal year). Operating income came to ¥58 million (down 20.7%).

(2) Qualitative Information Regarding Consolidated Financial Position
Assets, Liabilities, and Net Assets
Total assets as of the end of the period under review (August 31, 2013) stood at ¥55,584 million, an
increase of ¥2,289 million from the end of the previous fiscal year (February 28, 2013). This largely
reflected increases in notes and accounts receivable — trade, merchandise and finished goods, andshort-term investment securities of ¥1,072 million, ¥514 million, and ¥480 million, respectively. Total
liabilities came to ¥13,095 million, an increase of ¥906 million from the previous fiscal year-end. The
principal movement was an upswing in the balance of notes and accounts payable — trade of ¥451 million.
Net assets climbed ¥1,382 million to ¥42,489 million. This was largely attributable to the increase inretained earnings of ¥942 million.
Cash Flows
Cash and cash equivalents as of the end of the period under review stood at ¥2,643 million. This was ¥531
million higher than the balance as of the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities came to ¥1,218 million. The major cash inflow came fromincome before income taxes of ¥2,215 million. This was partially offset by the principal cash outflow
arising from the increase in notes and accounts receivable — trade of ¥1,069 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥354 million. The main movements were purchase ofnoncurrent assets totaling ¥581 million and proceeds from sales of noncurrent assets, which came to ¥128
million.
(Cash Flows from Financing Activities)
Net cash used in financing activities was ¥338 million. This largely reflected cash dividends paid of ¥328
million.
(3) Qualitative Information Regarding Forecasts of Consolidated Business Results
Earnings forecasts are unchanged from those announced on April 15, 2013.
2. Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period:
Not applicable(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements:
Not applicable-5-(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements:(Changes in Accounting Policies Difficult to Distinguish from Changes in Accounting Estimates)
In accordance with revisions to the Corporation Tax Act of Japan, YONDOSHI HOLDINGS and its
domestic consolidated subsidiaries have changed their accounting policies for property and equipment
acquired n or after March 1, 2013 to the depreciation method based on the revised Corporation Tax Act
effective from the first quarter of fiscal 2013.
The impact of this change on profit and loss for the first half of fiscal 2013 is minimal.

-6-3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Second Quarter ofFebruary 28, 2013

the Fiscal Year Ending(As of February 28, 2013)

February 28, 2014
(As of August 31, 2013)ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade521,769

573,088

3,149,732

4,221,471

Short-term investment securities

1,590,000

2,070,000

Merchandise and finished goods

5,842,888

6,357,781

Work in process

447,256

528,367

Raw materials and supplies

464,404

463,431

Other current assets

979,526

744,027

Allowance for doubtful accounts
Total current assets(216)(6,092)

12,995,001

14,952,076

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

5,389,917

5,543,682

Land

5,617,629

5,549,208

Other, net
Total property, plant and equipment

678,445755,567

11,685,992

11,848,458

6,726,954

6,545,563

Intangible assets:
Goodwill
Other intangible assets

624,005

592,301

Total intangible assets

7,350,959

7,046,864

Investments and other assets:
Investment securities

14,803,392

15,333,523

Prepaid pension cost

1,998,224

2,038,675

Other

5,045,991

4,947,406

Allowance for doubtful accounts(584,093)(582,332)

Total investments and other assets

21,263,515

21,737,272

Total noncurrent assets
Total assets-7-40,300,467

40,632,595

53,295,468

55,584,672

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

End of the Second Quarter ofFebruary 28, 2013

the Fiscal Year Ending(As of February 28, 2013)

February 28, 2014
(As of August 31, 2013)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

3,810,018

4,261,038

Income taxes payable

855,113658,597

Provision for bonuses

553,077

292,936

Provision for directors' bonuses

59,45031,892Other

2,895,275

3,801,600

Total current liabilities

8,172,934

9,046,065

Noncurrent liabilities:
Long-term loans payable

243,160

198,400

Provision for retirement benefits

540,621541,682

Provision for directors' retirement benefits

380,602313,869

Asset retirement obligations

845,241

915,854

2,006,268

2,079,614

Other
Total noncurrent liabilities
Total liabilities

4,015,894

4,049,420

12,188,829

13,095,485

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,300,303

18,321,705

Retained earnings

21,891,593

22,834,523

Treasury stock(1,670,933)(1,535,789)

Total shareholders’ equity

41,007,484

42,106,959

Valuation difference on available-for-sale securities

352,470

593,641

Deferred gains or losses on hedges

16,070(2,565)

Revaluation reserve for land

(264,512)(233,476)

Foreign currency translation adjustments(25,239)

16,310Total other accumulated comprehensive income

78,789373,910Subscription rights to shares

19,195

8,316

Minority interests

1,171

―

41,106,639

42,489,186

53,295,468

55,584,672

Other accumulated comprehensive income:

Total net assets
Total liabilities and net assets-8-(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Thousands of yen)First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2013

February 28, 2014

(March 1, 2012 to(March 1, 2013 toAugust 31, 2012)

August 31, 2013)

Net sales

22,136,275

22,224,781

Cost of Sales

10,190,458

10,162,849

Gross profit

11,945,816

12,061,932

488,828

431,143

Other operating revenue
Operating gross profit

12,434,645

12,493,075

Selling, general and administrative expenses

10,472,848

10,596,199

Operating income

1,961,796

1,896,875

Non-operating income
Interest income

1,514

4,244

Dividends received
Equity in earnings of affiliates

37,48940,520219,491

248,797

Rent of real estate for investment

44,11548,267

Foreign exchange gains

11,341

8,648

Other

43,40425,677

Total non-operating income

357,357

376,155

Interest expenses

8,755

2,015

Loss on insurance cancellation

3,221

1,914

Depreciation of real estate for investment

3,127

3,051

Other

7,279

3,015

Total non-operating expenses

22,383

9,997

2,296,770

2,263,034――

12,163Gain on sales of investments in real estates
Gain on sales of investment securities

5

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

21,974Foregift income

14,000――Refund of consumer taxes for prior periods

14,005

34,1384,036

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities

198,256――

Impairment loss

109,784

81,911

Loss on closing of stores

9,978

Demolition expenses

18,000―――Loss on valuation of golf club membership

22,504

Total extraordinary losses

362,559

81,911

Net income before income taxes

1,948,216

2,215,260

Income taxes ― current

611,115

606,668

Income taxes ― deferred

289,082

310,704

Total income taxes

900,197

917,373

1,048,018

1,297,887

Income before minority interests
Minority interests in income (loss)
Net income

-9-

174

(0)

1,047,844

1,297,888

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

Income before minority interests

First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2013

February 28, 2014

(March 1, 2012 to(March 1, 2013 toAugust 31, 2012)

August 31, 2013)

1,048,018

1,297,887

Other comprehensive income
Other valuation difference on available-for-sale securities(111,405)

199,674

Deferred gains or losses on hedges
Foreign currency translation adjustments(16,879)(17,634)(2,363)41,550(71,408)

40,495(202,056)
845,961

264,085
1,561,972

845,787

1,561,973

174

(0)

Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests- 10 -

(3) Consolidated Quarterly Statements of Cash Flows(Thousands of yen)First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2013

February 28, 2014

(March 1, 2012 to(March 1, 2013 toAugust 31, 2012)

August 31, 2013)

Cash flows from operating activities:
Income before income taxes

1,948,216

2,215,261

Impairment loss

109,784

81,911

Increase (decrease) in allowance for doubtful accounts(9,009)4,114(206,256)(260,140)

Increase (decrease) in provision for retirement benefits(8,439)(39,967)

Increase (decrease) in other provision(15,509)(94,291)

Interest and dividends income(39,003)(44,764)

Increase (decrease) in provision for bonuses

Interest expenses
Equity in (earnings) losses of affiliates
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

8,755

2,015

(219,491)(248,797)

9,348(4,762)

(5)

―
―
―

198,256

Loss on retirement of noncurrent assets

4,036

Loss (gain) on sales of noncurrent assets
Loss (gain) on sales of investments in real estates
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Increase (decrease) in accounts payable-other
Increase (decrease) in advances received――(12,163)(518,341)(1,069,967)(562,851)(585,301)(20,373)

450,789(21,974)(198,813)

511,324

169,116

287,655

Other, net

628,718

736,024

Subtotal

1,278,135

1,906,966

Interest and dividends income received

93,38699,146

Interest expenses paid

(8,543)(1,988)(1,029,039)(785,871)

333,939

1,218,253(422,906)(581,994)―

128,560(8,739)(9,491)

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Purchase of investment securities
Proceeds from sales of investment securities

31―

Proceeds from sales of investments in real estates―

63,361

Other(60,576)

44,889Net cash provided by (used in) investing activities(492,192)(354,674)(97,650)(44,760)

Cash flows from financing activities:
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities

(121)

(377)

―

106,513(317,394)(328,440)

9,354(71,292)(405,810)(338,356)

1,168

6,097

Net increase (decrease) in cash and cash equivalents(562,895)

531,319

Cash and cash equivalents at beginning of period

1,287,321

2,111,769

724,426

2,643,088

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of period- 11 -

(4) Notes Regarding Going Concern Assumptions
Not applicable(5) Notes Regarding Substantial Changes in Shareholders’ Equity
Not applicable(6) Segment Information
Ⅰ The first half of the fiscal year ended February 28, 2013 (March 1, 2012 to August 31, 2012)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
quarterlystatements
of income(Note 2)

22,625,103―

22,625,103

88,769810,833(810,833)―

2,959,257

3,703,929

23,435,937(810,833)

22,625,103

1,461

73,905

2,156,996(195,199)

1,961,796

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUage

Total

10,796,195

5,281,353

2,932,395

3,615,159

21,038674,162

26,861

Total

10,817,234

5,955,516

Segment income

1,620,112

461,517

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Notes:
1. The adjustment amount of minus ¥195,199 thousand for segment income mainly includes corporate expenses that are
not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

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

The first half of the fiscal year ending February 28, 2014 (March 1, 2013 to August 31, 2013)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
quarterlystatements
of income(Note 2)

22,655,924―

22,655,924

99,629808,768(808,768)―

2,886,532

3,878,617

23,464,692(808,768)

22,655,924(89,079)

58,5842,013,168(116,293)

1,896,875

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUage

Total

11,148,320

4,859,061

2,869,555

3,778,987

19,015673,145

16,977

11,167,335

5,532,207

1,718,586

325,077

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers
Total
Segment income or loss

Notes:
1. The adjustment amount of minus ¥116,293 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.

- 12 -

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.

- 13 -