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

Investors’ Presentation
Results for the First Half of Fiscal 2019
(The Fiscal Year Ending February 29, 2020)
October 7, 2019

Introduction (1): Rebranding Progress

The rebranding of Canal began in September
The logo has been upgraded from Canal4ºC to Canal produced by 4ºC
Expand to specialty stores featuring fashionable jewelry with trendy designs

2Introduction (2): Highlights of the First Halfof the Fiscal Year under Review

Net sales nearly on par with last year, operating income
up 110.1% year-on-year, profits trending above the plan
The Jewelry Business: Achievements of key measures
 Bridal jewelry: Successful measures to boost existing store sales
 Store profitability growth by reducing unprofitable stores
 Steady rise in sales ratio of captive demand and purchases forown use The Apparel Business remains strong Apparel manufacturing business profit growth via higher profit
margins
 Everyday fashion business net sales growth and record-highprofits through steady store openings
3Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2019,
the Fiscal Year Ending February 29, 2020
Ⅱ. Business Results Forecasts for Fiscal 2019 and Measures for
the Second Half
Ⅲ. Medium-Term Strategic Approach

Saishi Kimura. Chairman and Representative Director・CEO
Akihiro Takiguchi, President and Representative Director・COO
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.

4Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2019,
the Fiscal Year Ending February 29, 2020
Ⅱ. Business Results Forecasts for Fiscal 2019 and Measures for
the Second Half
Ⅲ. Medium-Term Strategic Approach

Overview of Consolidated Operating Results for
the First Half of Fiscal 2019 (1) Net sales on par with last year but operating income growth in the double digits;
underlying rises for both ordinary income and net income despite equity-method
investment gains disappearing from the year under review
 Strong operating income and ordinary income trending above the plan
Net sales: ¥21,925 million (－0.8% YoY ) Operating income: ¥2,195 million (+10.1% YoY)
Ordinary income: ¥2,370 million (－8.0% YoY) Net income: ¥1,484million (－18.3% YoY)
(Millions of yen)

Net sales
22,094

Operating income
2,195

21,925
1,994

Ordinary income

Net income

2,578
2,370

1,817
1,484

－0.8%

+10.1%－8.0%

1H FY2018
1H FY2019
Actual Results Actual Results

1H FY2018
1H FY2019
Actual Results Actual Results

1H FY2018
1H FY2019
Actual Results Actual Results－18.3%

1H FY2018
1H FY2019
Actual Results Actual Results

6

Overview of Consolidated Operating Results for
the First Half of Fiscal 2019 (2)1H FY2018 (2018/8)

1H FY2019 (2019/8)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Results

（％）

Plans

（％）

Results（％）

Net sales

22,094100.0

22,400100.0

21,925

100.0

－0.8

－2.1

Gross profit

12,582

56.9

12,66056.5

12,408

56.6

－1.4

－2.0

－0.3

＋0.1

(Millions of yen, %)Gross profit margin56.9

Selling, general andadministrative expenses

10,58747.9

10,56047.1

10,213

46.6

－3.3

－3.5

Amortization of
goodwill

248

1.1

248

1.1

248

1.1

248

±0

Operating income

1,994

9.0

2,100

9.4

2,195

10.0

＋10.1

＋4.5

Ordinary income

2,578

11.7

2,250

10.0

2,370

10.8

－8.0

＋5.4

Net income

1,817

8.2

1,500

6.7

1,484

6.8

－18.3

－1.0

≪Reference ≫1H FY2018 (2018/8)

Key management indicators
Results（％）

Operating income before theamortization of goodwill

2,243

10.1

Net income before theamortization of goodwill

2,065

9.3

(Millions of yen, %)

56.6

56.5

1H FY2019 (2019/8)
Plans

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)（％）

Results

（％）

2,348

10.5

2,443

11.1

＋8.9

＋4.1

1,748

7.8

1,732

7.9

－16.1

－0.9

* 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

7

Operating Income
Cost of sales ratio
1H FY2018 1H FY 201943.1% ⇒ 43.4%+0.3pt(Millions of yen)

SG&A expenses to net sales ratio
1H FY2018 1H FY 201947.9% ⇒ 46.6%－1.3pt

－ 374
－ 166
1,994

2,195

+6

OperatingincomemarginOperatingincomemargin

10.0%

9.0%

Operating income
1H FY2018(2018/8)

Net sales

Cost of sales

SG&A expenses

Operating income
1H FY2019(2019/8)

8

Trends in Quarterly Business Results
Trends in Net Sales by Quarter
1Q(Millions of yen)

3Q

2Q

4Q
16,583

12,306 11,588

11,341 11,216 11,143

11,742 11,347 11,086 10,878

'16/2

'18/2

'16/2

'17/2

'19/2

'20/2

'17/2

'18/2

'19/2

10,782

12,251 11,541 11,407

11,143

'20/2

'16/2

'19/2

'17/2

'18/2

'20/2

'16/2

15,321'17/2

14,226 13,880'18/2

Trends in Operating Income by Quarter
1Q

2Q

'19/2

'20/2

(Millions of yen)

3Q

4Q
2,737 2,564 2,615
1,982

1,348

1,547

1,341 1,196 1,243
855

'16/2

'17/2

'18/2

'19/2

'20/2

'16/2

1,157 1,067

'17/2

'18/2

797

'19/2

952

1,172 1,261 1,079
1,007

'20/2

'16/2

'17/2

'18/2

'19/2

'20/2

'16/2

'17/2

'18/2

'19/2

'20/2

1Q
FY20182Q
FY20181H
FY2018(2018/8)

1Q
FY20192Q
FY20191H
FY2019(2019/8)

Increase /(Decrease)

Net sales

11,216

10,87822,094

11,143

10,782

21,925

(169)

－0.8

Gross profit

6,497

6,085

12,582

6,379

6,029

12,408

(174)

－2.0

Operating income

1,196

797

1,994

1,243

952

2,195

＋201

＋10.1

(Millions of yen)

YoY

9Overview of Business Results by Segment～The Jewelry Business Sales down, profits up, existing store sales recovering Bridal jewelry remains strong thanks to the success of various measures to attract
more customers
 Store profitability up owing to progress in reducing unprofitable stores(Millions of yen)

Net sales
13,108Operating income

12,671

Ordinary income

1,815

1,731

Net income

1,867

1,795

1,189

1,171

－3.3%

+4.8%

+4.0%

+1.6%

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H
FY2019ActualResults Actual
Results
実績
実績

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H
FY2019ActualResults Actual
Results
実績
実績

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H
FY2019ActualResults Actual
Results
実績
実績

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H FY2019
ActualResults Actual
Results
実績
実績

1H FY2018 (2018/8)(Millions ofyen, %)

ActualResults

1H FY2019 (2019/8)
Plans(Revised)

(%)

(%)

ActualResults(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

13,108100.0

12,842100.0

12,671

100.0

－3.3

－1.3

OperatingincomeOrdinary
income

1,731

13.2

1,850

14.4

1,815

14.3

＋4.8

－1.9

1,795

13.7

1,900

14.8

1,867

14.7

＋4.0

－1.7

Net income

1,171

8.9

1,300

10.1

1,189

9.4

＋1.6

－8.5

10

Jewelry Business:
Quarterly Trends in Mainstay Brand Existing Store Sales
 Strong sales including department store channel sales of 4ºC bridal jewelry,
which had been an issue
(%)

110
105
100
95
90
85
4ºC fashion jewerly

80
FY2018 1Q

Existing stores
YoY

4ºC bridal jewerly (department store)

FY2018 2Q

FY2018 3Q

4ºC bridal jewerly (specialty store)

FY2018 4Q

FY2019 1Q

2Q

3Q

FY2019 2Q

1H FY2019 (2019/8)

1H FY2018 (2018/8)
1Q

canal4ºC

4Q

1Q

2Q

1H

4ºC fashion jewerly

97.8

92.2

97.0

97.4

98.4

99.9

99.1

4ºC bridal jewerly(department store)

92.4

84.0

90.3

92.3

108.1

100.5

104.1

4ºC bridal jewerly(specialty store)

91.4

94.6

96.9

100.5

108.2

99.0

103.4

canal4ºC

104.5

96.2

95.7

97.2

100.2

99.9

100.1 11

Overview of Business Results by Segment～The Apparel Business Increases in revenue, operating income and ordinary income all in excess of plans Apparel manufacturing business profits up significantly owing to successful measures toimprove gross profit margin and reduce overhead Everyday fashion business sales rise and profits reach record high due to more store
openings and profit margin improvement(Millions of yen)

Net sales
8,985Operating income

Ordinary income

490

613

9,254

518

Net income
433
306

351

+3.0%

+40.1%+18.4%－29.3%

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H FY2019
ActualResults Actual
Results
実績
実績

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H
FY2019ActualResults Actual
Results
実績
実績

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H
FY2019ActualResults Actual
Results
実績
実績

第69期2Ｑ
第70期2Ｑ
1H FY2018
1H FY2019
ActualResults Actual
Results
実績
実績

1H FY2018 (2018/8)(Millions ofyen, %)Net sales
OperatingincomeOrdinary
incomeNet income

ActualResults

1H FY2019 (2019/8)
Plans(Revised)(%)

ActualResults

(%)

(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

8,985

100.0

9,562

100.0

9,254

100.0

+3.0

－3.2

351

3.9

438

4.6

490

5.3

+40.1

+12.0

518

5.8

533

5.6

613

6.6

+18.4

+15.0

433

4.8

331

3.5

306

3.3

－29.3

－7.6

12

Overview of Financial Position and Cash Flows(Consolidated) Total assets, liabilities, and net assets stood at ¥55.2 billion, ¥14.5 billion, and ¥40.6 billion,
respectively
 Cash flows from financing activities: Repurchase of the Company’s own shares of around¥3.1billion and paid cash dividends of around ¥900 million to increase shareholder returns

Financial Position

Cash Flows¥ 14.5 billion
Total assets¥55.2 billion¥40.6 billion

Total net assets
Total liabilities

As of August 31, 2019

(Millions of yen)

1H FY2018(2018/8)

1H FY2019(2019/8)

Increase(Decrease

Operating cash
flows

1,230

405

(825)

Investingcash flows(1,020)23+1,043Financing cash
flows

(967)

(3,640)(2,673)Free
cash flows

+210

+428

+218

13

Status and Plan of Store Openings and Closures
 Jewelry Business: Will work to increase store profitability by reducing
unprofitable stores centered on Luria4ºC (*bags, small leather items)
 Apparel Business: Expansion in PALETTE store openings is steadily progressing
ApparelBusiness

Jewelry BusinessJapan

FY2018(2019/2)

FY20191H Actual
Results(201898)

FY20192H Plan(2020/2)

Total

Department
store

Bridal Shop

Fashion
Building

Total

Overseas

PALETTE

Fiscalyearend

5

76

42

86

209

4

71

284

Storesopened

0

1

2

1

4

0

3

7

Storesclosed

2

6

3

4

15

1

1

17

2Hend

3

71

41

83

198

3

73

274

Storesopened

0

5

0

3

8

0

2

10

Storesclosed

0

7

0

10

17

0

0

17

Fiscalyearend

3

69

41

76

189

3

75

267
14

Status of the Number of Domestic Brand Storesin the Jewelry Business

4ºC
FY2018(2019/2)

FY20191H Actual
Results(2019/8)

FY2019 2H
Plan(2020/2)

4ºC
BRIDAL

canal4ºC

EAU
DOUCE
4ºC

MAISONJEWELL

Jewelry
Total

Luria 4ºC

Total

Fiscal yearend

91

42

46

23

7

209

50

259

Storesopened

2

2

0

1

0

5

0

5

Stores closed

6

3

1

3

1

14

9

23

2H-end

87

41

45

21

6

200

41

241

Storesopened

6

0

2

0

0

8

0

8

Stores closed

7

0

0

0

0

7

14

21

Fiscal yearend

86

41

47

21

6

201

27

228

*Composite stores that handle multiple brands are recorded as a single store by each individual brand.
* Refers to the internal relocation of five stores within４℃ store openings/closings15

Shareholder Returns (1) The Company’s Own Share
Acquisition Status & Retirement
Acquisition of the Company’s own shares Around 3.25 million shares in the fiscal year ended February 28, 2019
 Around 1.48 million shares in the fiscal year ending February 28, 2020

Total acquisition of around 4.73 million
for fiscal 2018 and 2019 Press release issued on October 7, 2019

Decision to retire 5 million shares oftreasury stock*17.05% of the total number of shares issued and outstanding (excluding treasury stock)☆ Retirement date: October 15, 201916

Shareholder Returns (2) Return Policy, Cash Dividends
 Dedicated to proactively repurchasing the Company’s own shares andsustained dividend hikes
 Fiscal year ending under review: Currently acquired around 1.48 million(around ¥3.6 billion) of the Company’s own shares Decided to retire 5 million shares of treasury stock(including previous repurchases)
 YoY increase of ¥2.5 per share to ¥40.0 per share in the interim dividend
for the fiscal year ending February 29, 2020
 Plan to pay a cash dividend of ¥80 per share, up ¥5 per share,
for the fiscal year ending February 29, 2020
(ninth consecutive fiscal year of dividend increase)

FY2017 (2018/2)

FY2018 (2019/2)

FY2019 (2020/2)
Forecast

Annual dividends per share (Yen)

65.0

75.0

80.0

Payout ratio (%)

31.4

78.1

52.8

Total return ratio (%)

31.4

374.1

162.9
17

Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2019,
the Fiscal Year Ending February 29, 2020
Ⅱ. Business Results Forecasts for Fiscal 2019 and Measures for
the Second Half
Ⅲ. Medium-Term Strategic ApproachConsolidated Business Results Forecasts
for Fiscal 2019
FY2018 (2019/2)(Millions of yen, %)Results

FY2019 (2020/2)（％）

Full-year
forecasts

YoY

（％）

Increase(Decrease) (%)

Net sales

47,118100.0

47,300

100.0

+0.4

Gross profit

27,155

57.6

27,26557.6+0.4

Gross profit margin57.6

Selling, general andadministrative expenses

22,17147.1

22,16546.9±0

Amortization of
goodwill

496

1.1

496

1.0

±0

Operating income

4,984

10.6

5,100

10.8

+2.3

Ordinary income

6,804

14.5

5,400

11.4

－20.6

Net income

2,440

5.2

3,400

7.2

+39.3

≪Reference ≫57.6

FY2018 (2019/2)±0

FY2019 (2020/2)

YoY

Operating income before
the amortization of
goodwill

5,480

11.6

5,596

11.8

+2.1

Net income before theamortization of goodwill

2,937

6.2

3,896

8.2

+32.7

* 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

19

Fiscal Year Ending February 29, 2020:
Projected Key Management Indicators
Based on profit before the amortization of goodwill
FY2018 (2019/2)

Operating income

FY2019 (2020/2)
Forecasts

5,480

5,596

ROE (%)

6.2

9.1

EPS (Yen)

115.6

174.1

(Millions of yen)

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

20

Consolidated Business Results Forecasts by Segment
for Fiscal 2019 (Figures are after accounting for intrasegment net sales and transfers)
 Revenue projected to decrease but earnings to increase in the Jewelry Businessowing to strong bridal jewelry sales and efforts to boost profitability by reducing
unprofitable stores
 Revenue and profits projected to rise in the Apparel Business by boosting
apparel manufacturing business profit margins and increasing PALETTE store
openings
FY2018(2019/2)(Millions ofyen, %)The Jewelry
Business

The ApparelBusiness

Results

FY2019 (2020/2)
1H Results

2H
Forecasts

Full-year
Forecasts(Revised)

YoY

Net sales

29,295

12,671

15,82928,500－2.7

Operatingincome

4,465

1,815

2,785

4,600

+3.0

Ordinary
income

4,572

1867

2,833

4,700

+2.8

Net income

2,981

1189

2,011

3,200

+7.3

Net sales

17,822

9,254

9,546

18,800+5.5

Operatingincome

603

490

250

740

+22.7

Ordinary
income

904

613

312

925

+2.3

Net income

4,582

306

254

560

－87.8

21

Initiative Challenges and Implementation
for the Second Half

Jewelry Business Ongoing measures to raise 4ºC brand value and expand captive demand andpurchases for own use Improve brand image by enhancing messaging power Spur on early gift demand ahead of the Christmas season
 Boost bridal jewelry competitiveness Expand captive demand and purchases for own use through Canal
rebranding Strengthen consumer engagement by introducing customer management
systems

Apparel Business Enhance ODM functions in the apparel manufacturing business Further entrench the Group’s dominant position in the Kansai area
by opening PALETTE stores in the everyday fashion business22

Ongoing Measures to Enhance 4ºC Brand Value andExpand Captive Demand and Purchases for Own Use Strengthening the competitiveness of products; upgrading the brand image throughpromotions
 4ºC fashion jewelry net sales accounted for by female customers up 6.5% and net sales
accounted for by female captive demand up 7.5% owing to enhancing seasonal goods andearrings (*Existing store basis for the first half of fiscal 2019）

4ºC

23

Improve Brand Image through Enhanced
Messaging Power (1) Generate interest through in-house publication JEWELRY TIMES Feature jewelry-related topics such as materials and maintenance methods
In-house publication JEWELRY TIMES(A portion of articles)24Improve Brand Image through Enhanced
Messaging Power (2) Provide information to wide-ranging consumer segments beyond that go beyondfans through aggressive use of SNS
 Convey the attractive qualities of jewelry to large groups of people

Others25

Toward the Christmas Season (1) Spur on Christmas gift demand early in response to fewer holidays in December Capture demand for treating one’s self through unique products and services

4ºC limited edition Christmas items

26

Toward the Christmas Season (2) Enhance the creativity of Christmas promotions
 Implement a multi-pronged approach that includes TV commercials, online andmagazine advertising27

Raising Bridal Jewelry Competitiveness (1) Improving the ability to attract customers by increasing points of customer contact(enhancing customer service) and strengthening the ability to transmit information throughWEB media
 Create a unique worldview by enhancing services and providing original products

４℃ Aqua Crown series

４℃ calendar rings

28

Raising Bridal Jewelry Competitiveness (2) Expand items sold at bridal specialty stores Propose products geared toward non-wedding demand such as anniversaries andchildren’s birthdays

Various products that meet anniversary needs

29

Expand Captive Demand and Purchases for
Own Use through Canal rebranding (1) Change logo from canal4ºC to Canal produced by 4ºC (*excluding certain stores)
 Establish original position for Canal

BeforeAfter

30

Expand Captive Demand and Purchases for
Own Use through Canal rebranding (2) Expand products designed in Japan and overseas to fashion jewelry specialty stores Propose items with a broad range of designs to trend-sensitive women

JUTIQU

AROM

Limited edition Christmas items

Lamie

NOUE

Fillyjonk

31

Expand Captive Demand and Purchases for
Own Use through Canal rebranding (3) Expand store renovations, open two stores in the fiscal year under review(Yokohama Landmark Plaza store on September 4, Fukuoka Parco store on September 6)

Photo by Kozo Takayama

Canal Produced by 4ºC Landmark Plaza store

32

Expand Captive Demand and Purchases for
Own Use through Canal rebranding (4) Promote the appeal of experiencing value via open displays and lateral customer
contact
 Target further expansion in growth channels: shopping center and train stationbuildings

Photo by Kozo Takayama

Canal Produced by 4ºC open displays

33

Enhance engagement with consumers by introducing
customer management systems
 Work to bring customer management system online from mid October andboost repeat purchase rates
 Deepen connections with customers through system-based communication

1. Product purchases

2. Membershipregistration

3. Message
distribution

4. Customer traffic
uptake34

Strengthen apparel manufacturing businessand ODM functions
 Enhance major client-related initiatives based on turning product design
capabilities and overseas production into strengths
 Increase profitability by reducing the cost of sales ratio and overhead

AS’TY Showroom

35

Everyday Fashion Brand PALETTE Business
Further entrenching dominant position in the Kansai area by opening PALETTE stores Focus on increasing store openings and invigorating existing stores to reach net sales of ¥10billion Increase awareness and customer traffic through aggressive marketing campaigns
 Reducing the cost of sales ratio through direct container delivery and product development
initiatives

PALETTE Bessho store

PALETTE Yabu store

36

Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2019,
the Fiscal Year Ending February 29, 2020
Ⅱ. Business Results Forecasts for Fiscal 2019 and Measures for
the Second Half
Ⅲ. Medium-Term Strategic Approach

Medium-Term Management Objectives① ROE 10％* or higher② EPS ¥200* or higher③ Consecutive increase in dividends paid; target anannual dividend of ¥100 per share* Calculated using net income before amortization of goodwill(Net income before amortization of goodwill = profit attributable to owners of parent + goodwill amortization)
38

Outlook for Profit Growth

Strengthen the Company’s business platformby rebuilding the Jewelry Business and work to
expand captive demand and purchases forown use while broadening the depth of profit growth80

Growth factors

75

Operating income before theamortization of goodwill
Expand captive demand andpurchases for own use in
the Jewelry Business

70
65
60
55

Strengthen the Jewelry Business platform＋
Stable Apparel Business growth50
45
FY2018（2019/2）

FY2019（2020/2）

FY2020（2021/2）

FY2021（2022/2）

FY2022（2023/2）

FY2023（2024/2）

FY2024（2025/2）

FY2025（2026/2）

FY2026（2027/2）

FY2027（2028/2）

FY2028（2029/2）39

4ºC Rebranding Initiatives
Rebranding initiatives aimed at raising 4ºC brand value
From FY 2020
FY 2018
4ºC Rebranding(scheduled)

FY 2018
Canal Rebranding・Expand to fashion
Strengthen measures
jewelry specialty
aimed at addressing
storescaptive demand
・Clearly demarcate(purchases for own use)
4ºC positioning
Break free from a gift image ・Roll-out products by price
range
・Change policies toward
promotion
Commence 3Line
merchandising
・Initiate the roll-out of new
prototype stores・Completely renew the 4ºC
brand site

FY 2017

・Increase creativity
・Upgrade the status of
the brand

40

Continued Emphasis on Maintaining Consecutive
Increases in the Payment of Cash Dividends
 Continue to emphasis increases in the payment of cash dividends through profit growthand higher returns to shareholders
 Plan to pay a cash dividend of ¥80 per share, up ¥5 per share, for the fiscal year ending
February 29, 2020 for a ninth consecutive fiscal year of dividend growth Target an annual cash dividend of ¥100 per share in the future(Yen)

Annual cash dividend results and outlook
75

80

65
50
40
30

32

20

20

21

22

FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018（2010/2）（2011/2）（2012/2）（2013/2）（2014/2）（2015/2）（2016/2）（2017/2）（2018/2）（2019/2）

FY2019Outlook（2020/2）

FY2020
Outlook（2021/2）

FY2021
Outlook（2022/2）

41

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)42

Activities Aimed at Addressing ESG Issues (1) F.D.C. Products is striving to contribute to improvereliability and standard in each field of the jewerly market※What is the RJC・・・
The Responsible Jewellery Council is an international not-for-profit, standards and certification organization. Covering social andenvironmental responsibility focusing on the jewelry industry, the Council strives to realize responsible business practices for diamonds, goldand platinum across the entire jewelry supply chain and processes from mine to retail.

43

Activities Aimed at Addressing ESG Issues (2) Continuously support efforts to solve water-related issues
as trustees of the Japan Water Forum(Rainwater storage tank in Bangladesh)

44

Activities Aimed at Addressing ESG Issues (3)Acquisition of
Responsible Jewellry
Council Certification
 Every effort is made to promote responsible business practices while
engaging in activities that help realize a sustainable society and business
operations
 Increase product quality and service levels along with improving visibility
behind pricing and materials
 Clarify brand integrity by acquiring globally recognized certifications

Japan Water Forum Initiatives
 Continuously support activities to solve water-related issues as a Japan Water
Forum strategic partner
 Provide assistance to the Aqua Program charity fair45

In Conclusion
Increases in profits while operating income and ordinary
income are trending above the plan in the fiscal year underreview
Expect increases in full-fiscal sales and profits in line withthe plan for the fiscal year under review
In the Jewelry Business, Canal rebranding began in
September; aim for further growth by getting operations
underway early
4ºC rebranding will go into full swing from the next fiscal
year; secure permanency by increasing brand value
Apparel Business remains strong; will realize its role as astable earnings platform by steadily pursuing strategies
from the second half46

In Conclusion Repurchased all of the Company’s own shares capped at 1.35
million announced in April 2019; decided to retire on October 15
5 million shares of treasury stock related to around 4.73 million
shares acquired since the previous fiscal year Plans to hike dividends for a ninth consecutive fiscal year; will
work to increase the level of returns to shareholders byconsistently raising dividends to reach an annual cash dividend of¥100 per share in the future Find a roadmap to expand the Jewelry Business in order toachieve the medium-term ROE target of 10% or higher and EPSof ¥200 or higher (*on a net income before the amortization of
goodwill basis)
 Will further increase business management quality andcontribute to raising the level of every aspect of the industry asJapan’s leading jeweler47

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 Division (Kozuka, Moriyama, Mori)
TEL+81-3-5719-3274
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.